Financial Services Authority Regulation Number 12/POJK.05/2022 Regarding Amendments to Financial Services Authority Regulation Number 4/POJK.05/2018 Concerning Secondary Housing Financing Companies

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHABILITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 12 /POJK.05/2022
CONCERNING
AMENDMENTS TO FINANCIAL SERVICES AUTHORITY
REGULATION NUMBER 4/POJK.05/2018
CONCERNING
SECONDARY HOUSING FINANCING COMPANIES
BY THE GRACE OF THE ALMIGHTY GOD
THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering :
a. that in order to support an efficient and affordable secondary housing and residential financing market, the Government has established Presidential Regulation Number 100 of 2020 concerning the Third Amendment to Presidential Regulation Number 19 of 2005 concerning Secondary Housing Financing; b. that in order to support the Government's policy in developing the secondary housing financing market without neglecting prudential aspects, it is necessary to make adjustments to the Financial Services Authority Regulation Number 4/POJK.05/2018 concerning Secondary Housing Financing Companies;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Amendments to Financial Services Authority Regulation Number 4/POJK.05/2018 concerning Secondary Housing Financing Companies;
Recalling :
1. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
2. Financial Services Authority Regulation Number 4/POJK.05/2018 concerning Secondary Housing Financing Companies (State Gazette of the Republic of Indonesia Year 2018 Number 40, Supplement to the State Gazette of the Republic of Indonesia Number 6192);
DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING AMENDMENTS TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 4/POJK.05/2018 CONCERNING SECONDARY HOUSING FINANCING COMPANIES.
Article I
Several provisions in the Financial Services Authority Regulation Number 4/POJK.05/2018 concerning Secondary Housing Financing Companies (State Gazette of the Republic of Indonesia Year 2018 Number 40, Supplement to the State Gazette of the Republic of Indonesia Number 6192) are amended as follows:
1. Provisions of point 1, point 2, point 3, point 4, point 6, point 7, point 8, point 11, point 14, point 15, point 16, and point 17 of Article 1 are amended, and point 5 of Article 1 is deleted, so that Article 1 reads as follows:
Article 1
In this Financial Services Authority Regulation:
1. Secondary Housing Financing is the implementation of medium-term and/or long-term fund disbursement activities to originators through securitization.
2. Secondary Housing Financing Company, hereinafter abbreviated as PPSP, is a company established by the Government of the Republic of Indonesia to conduct Secondary Housing Financing and other activities related to the development of the Secondary Housing Financing market.
3. Originator is a financial institution issuing credit/financing in the form of a bank or other financial institution that has financial assets.
4. Financial Assets are receivables/bills or rights to receive benefits obtained by the Originator from providing credit/financing for the housing and residential financing sector.
5. Deleted.
6. Disbursement Institution is a bank and non-bank financial institution that provides credit/financing for the housing and/or residential financing sector.
7. Loan Disbursement is the provision of funds to Disbursement Institutions that requires the settlement of all obligations after a certain period.
8. Financing Disbursement is the provision of funds to Disbursement Institutions conducted based on Sharia principles.
9. Sharia Principles are Islamic legal provisions based on fatwas and/or Sharia compliance statements from the National Sharia Board of the Indonesian Ulema Council.
10. Securitization is the transformation of illiquid assets into liquid assets by purchasing Financial Assets from Originators and issuing asset-backed securities.
11. Asset-Backed Securities are securities that can be in the form of debt instruments or participation notes issued by an issuer whose payments are primarily sourced from all Financial Assets purchased and/or obtained by the issuer from Originators.
12. Sharia Business Unit, hereinafter abbreviated as UUS, is a work unit at the PPSP headquarters that functions to carry out Secondary Housing Financing business activities based on Sharia Principles and is the headquarters of branches and/or representative offices that conduct Secondary Housing Financing business activities based on Sharia Principles.
13. Shareholder is the Minister of Finance representing the Government of the Republic of Indonesia.
14. Board of Directors is the corporate organ authorized and fully responsible for managing the corporation for the benefit of the corporation, in accordance with the purpose and objectives of the corporation and representing the corporation, both in and out of court, in accordance with the articles of association.
15. Board of Commissioners is the corporate organ tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors.
16. Sharia Supervisory Board, hereinafter abbreviated as DPS, is a board that has the task and function of supervision and providing advice to the Board of Directors regarding the implementation of the Company's activities to ensure compliance with Sharia Principles.
17. Good Corporate Governance is the structure and process used and applied by the PPSP organ to improve the achievement of business results objectives and optimize the value of PPSP for all stakeholders in an accountable manner and based on laws and regulations as well as ethical values.
2. Paragraph (2) of Article 3 is deleted and paragraph (5) of Article 3 is amended, so that Article 3 reads as follows:
Article 3
(1) PPSP has a national operational area.
(2) Deleted.
(3) PPSP may open branch offices.
(4) Branch offices are directly responsible to the headquarters.
(5) PPSP must report the opening of branch offices as referred to in paragraph (3) to the Financial Services Authority within a maximum of 15 (fifteen) working days calculated from the date of opening of the branch office.
3. Paragraph (1) of Article 4 is added with 1 (one) letter, namely letter g, so that it reads as follows:
Article 4
(1) PPSP must have an organizational structure that clearly describes at least the following functions:
a. administration and accounting; b. marketing;
c. Securitization;
d. feasibility analysis of Loan Disbursement and/or Financing Disbursement; e. financial management; f. risk management, including internal control; and g. compliance. (2) The organizational structure as referred to in paragraph (1) must be completed with written descriptions of duties, authorities, responsibilities, and work procedures, which are established by the Board of Directors.
4. Paragraph (1) of Article 8 is amended and Article 8 is added with 1 (one) paragraph, namely paragraph (4), so that Article 8 reads as follows:
Article 8
(1) PPSP business activities include:
a. Securitization; b. Loan Disbursement and/or Financing Disbursement to support financing for the sustainability of ownership, occupancy, and availability of housing and/or residential areas;
c. capacity building for parties involved in the implementation of housing and/or residential financing;
d. implementation of special tasks from the government; and e. other business activities in the field of housing and/or residential financing to encourage the development of the secondary housing financing market, provided that it has obtained approval from the Shareholder. (2) PPSP business activities as referred to in paragraph (1) may be conducted based on Sharia Principles. (3) The implementation of business activities based on Sharia Principles as referred to in paragraph (2) must meet the following requirements:
a. principles of justice ('adl), balance (tawazun), benefit (maslahah), and universalism (alamiyah); b. does not contain prohibited elements, such as riba, maisir, gharar, zalim, risywah, sin, and haram objects; and
c. is conducted using contracts in accordance with fatwas of the National Sharia Board of the Indonesian Ulema Council.
(4) Fulfillment of contract usage in accordance with fatwas of the National Sharia Board of the Indonesian Ulema Council as referred to in paragraph (3) letter c is proven by:
a. fatwas of the National Sharia Board of the Indonesian Ulema Council or compliance statements with Sharia Principles from the National Sharia Board of the Indonesian Ulema Council that form the basis for contract usage; and b. compliance opinions with Sharia Principles from the DPS regarding the use of specific contracts for the aforementioned business activities.
5. Paragraph (2) and paragraph (4) of Article 9 are amended and 1 (one) paragraph, namely paragraph (2a), is inserted between paragraph (2) and paragraph (3), so that Article 9 reads as follows:
Article 9
(1) Securitization activities as referred to in Article 8 paragraph (1) letter a are conducted by purchasing collections of Financial Assets from Originators and issuing Asset-Backed Securities. (2) In carrying out Securitization activities as referred to in paragraph (1), PPSP may act as a global coordinator, underwriter, securitization manager, and/or credit enhancer. (2a) Collections of Financial Assets from Originators as referred to in paragraph (1) must meet at least the following criteria:
a. originating from credit/financing bills provided by Originators in the housing and residential sector; b. having a "performing" category at the time of purchase;
c. having cash flows;
d. owned and under the control of Originators; e. Financial Assets are not pledged to other parties or involved in disputes with other parties; and f. can be freely transferred. (3) PPSP must have procedures containing requirements regarding Financial Asset criteria that can undergo Securitization. (4) PPSP must carry out monitoring activities regarding Asset-Backed Securities that have been issued.
6. Between Article 9 and Article 10, 1 (one) article, namely Article 9A, is inserted, so that it reads as follows:
Article 9A
(1) Purchases of collections of Financial Assets as referred to in Article 9 paragraph (1) may be recorded in PPSP financial reports until they meet economic feasibility for securitization. (2) To implement the recording of Financial Assets in financial reports as referred to in paragraph (1), PPSP must have procedures containing:
a. criteria for Financial Assets that can be recorded in financial reports; b. economic feasibility criteria; and
c. risk mitigation if Financial Assets that have been purchased cannot be securitized.
(3) Collections of Financial Assets recorded in financial reports as referred to in paragraph (1) must be protected by credit insurance or credit guarantees. (4) PPSP must report the procedures as referred to in paragraph (2) to the Financial Services Authority. (5) Procedures as referred to in paragraph (2) must be submitted for the first time within a maximum of 30 (thirty) working days since this Financial Services Authority Regulation was enacted. (6) PPSP must report any changes to procedures as referred to in paragraph (2) to the Financial Services Authority within a maximum of 30 (thirty) working days since the procedure changes were established. (7) PPSP must comply with the procedures as referred to in paragraph (2) that have been submitted to the Financial Services Authority.
7. Paragraph (1) of Article 10 is amended so that it reads as follows:
Article 10
(1) In carrying out Loan Disbursement and/or Financing Disbursement activities as referred to in Article 8 paragraph (1) letter b, PPSP must have policies and procedures that consider risk mitigation. (2) The Financial Services Authority assesses the policies and procedures for Loan Disbursement and/or Financing Disbursement as referred to in paragraph (1). (3) The Financial Services Authority may request PPSP to improve the policies and procedures for Loan Disbursement and/or Financing Disbursement.
8. Article 11 is amended so that it reads as follows:
Article 11
(1) Financing conducted by PPSP as referred to in Article 8 paragraph (1) letter b must be accompanied by underlying credit/financing assets for the sustainability of ownership, occupancy, and availability of housing and/or residential areas. (2) In the event that Loan Disbursement and/or Financing Disbursement is accompanied by collateral in the form of bills, the bills must meet the following requirements:
a. originating from credit/financing for the sustainability of ownership, occupancy, and availability of housing and/or residential areas; b. collectibility in "performing" status at the time of collateral attachment;
c. risk mitigation measures including:
1. bills accompanied by land collateral must be attached with a first-level land mortgage right, or collateral other than land must be attached in accordance with laws and regulations;
2. customers are protected by life insurance; and/or
3. bills accompanied by collateral other than land must be protected by insurance.
(3) In the event that land collateral as referred to in paragraph (2) letter c point 1 is not attached with a first-level land mortgage right, PPSP must cancel credit guarantees or credit insurance for the Loan Disbursement and/or Financing Disbursement disbursed. (4) In the event that Financing Disbursement is conducted based on Sharia Principles, the insurance or guarantee mechanisms as referred to in paragraph (2) and paragraph (3) must be conducted based on Sharia Principles. (5) Bill requirements as referred to in paragraph (2) letter b and letter c may be exempted for bills related to the implementation of special tasks from the government as referred to in Article 8 paragraph (1) letter d.
9. Article 12 is amended so that it reads as follows:
Article 12
(1) PPSP must report the implementation of special tasks from the government as referred to in Article 8 paragraph (1) letter d and other business activities as referred to in Article 8 paragraph (1) letter e to the Financial Services Authority within a maximum of 15 (fifteen) working days since the date of implementation of the business activities. (2) Reporting of business activities as referred to in paragraph (1) is submitted to the Financial Services Authority by attaching documents consisting of:
a. descriptions containing the scheme or mechanism of business activities conducted; b. proof of DPS approval of documents as referred to in letter a in the event that business activities are conducted based on Sharia Principles;
c. proof of government task implementation in the form of laws and regulations or decisions issued by the government, for reporting on the implementation of special tasks from the government as referred to in Article 8 paragraph (1) letter d; and
d. proof of Shareholder approval, for reporting on other business activities as referred to in Article 8 paragraph (1) letter e.
10. Article 14 is amended so that it reads as follows:
Article 14
(1) To implement Secondary Housing Financing, PPSP may conduct direct investments.
(2) Direct investments as referred to in paragraph (1) may only be conducted on business entities whose activities support the sustainability of ownership, occupancy, and availability of housing and/or residential areas, including business entities in the field of providing guarantee facilities in accordance with laws and regulations. (3) Direct investments as referred to in paragraph (1) must first obtain approval from the Shareholder.
11. Paragraph (1) and paragraph (2) of Article 19 are amended so that they read as follows:
Article 19
(1) PPSP must calculate asset write-down provisions against:
a. assets in the form of Loan Disbursement and/or Financing Disbursement; and b. Financial Assets recorded for Securitization as referred to in Article 9A paragraph (1), to form reserves. (2) The formation of reserves as referred to in paragraph (1) is set at a minimum of:
a. 0% (zero percent) of assets with performing quality; b. 5% (five percent) of assets with special attention quality after deducting collateral values;
c. 15% (fifteen percent) of assets with substandard quality after deducting collateral values;
d. 50% (fifty percent) of assets with doubtful quality after deducting collateral values; and e. 100% (one hundred percent) of assets with non-performing quality after deducting collateral values. (3) Provisions regarding changes in reserve formation amounts as referred to in paragraph (2) are regulated in Financial Services Authority Circular Letters.
12. Between Article 26 and Article 27, 1 (one) article, namely Article 26A, is inserted, so that it reads as follows:
Article 26A
Provisions regarding:
a. liquidity as referred to in Article 15; b. capital adequacy as referred to in Article 16;
c. asset quality as referred to in Article 17; and
d. risk management implementation as referred to in Article 24, apply mutatis mutandis to PPSP business activities based on Sharia Principles.
13. Paragraph (2) and paragraph (3) of Article 29 are amended so that they read as follows:
Article 29
(1) PPSP must prepare reports on the implementation of Good Corporate Governance at the end of each fiscal year.
(2) Reports on the implementation of Good Corporate Governance as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than April 30 of the following year. (3) Reports on the implementation of Good Corporate Governance as referred to in paragraph (1) must contain at least:
a. transparency of Good Corporate Governance implementation, at least disclosure of all aspects of implementing Good Corporate Governance principles as referred to in Article 21 paragraph (3); b. assessments of Good Corporate Governance implementation as referred to in Article 23; and
c. action plans including necessary corrective actions, completion times, and obstacles/difficulties in completion, if there are still deficiencies in the implementation of Good Corporate Governance.
14. Between Article 29 and Article 30, 1 (one) article, namely Article 29A, is inserted, so that it reads as follows:
Article 29A
(1) PPSP must submit internal audit reports periodically every 3 (three) months for periods ending on March 31, June 30, September 30, and December 31 to the Financial Services Authority. (2) Submission of internal audit reports as referred to in paragraph (1) is conducted no later than the end of the following month.
15. Article 30 is amended so that it reads as follows:
Article 30
PPSP must submit risk level assessment results as referred to in Article 26 to the Financial Services Authority, with the following provisions:
a. for year-end position risk level assessments as referred to in Article 26 paragraph (2), submission is made no later than March 31 of the following year; and b. for ad-hoc risk level assessments as referred to in Article 26 paragraph (3), submission is made according to the time limits established by the Financial Services Authority.
16. Paragraph (2) of Article 31 is amended, and paragraph (3) and paragraph (4) of Article 31 are deleted, so that Article 31 reads as follows:
Article 31
(1) PPSP must prepare annual business plans.
(2) Provisions regarding business plans as referred to in paragraph (1) are implemented in accordance with Financial Services Authority Regulations concerning business plans of non-bank financial institutions. (3) Deleted. (4) Deleted.
17. Paragraph (1) of Article 35 is amended so that it reads as follows:
Article 35
(1) PPSP must report changes to headquarters and/or branch office addresses in writing to the Financial Services Authority within a maximum of 15 (fifteen) working days since the date of changes. (2) Reporting of headquarters and/or branch office address changes as referred to in paragraph (1) must use Format 8 contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by proof of ownership or control over the new office building.
18. Article 36 is amended so that it reads as follows:
Article 36
If the deadline for submitting reports to the Financial Services Authority as referred to in Article 27 paragraph (1), Article 29 paragraph (2), Article 29A, and/or Article 30 falls on a holiday, the final submission deadline is on the first working day following the holiday.
19. The title of CHAPTER IX is amended so that it reads as follows:
CHAPTER IX
SUPERVISION
20. Paragraph (2) of Article 39 is amended and Article 39 is added with 1 (one) paragraph, namely paragraph (3), so that it reads as follows:
Article 39
(1) The Financial Services Authority conducts risk-based supervision of PPSP.
(2) In the event that based on the results of the Financial Services Authority's supervision, PPSP is assessed to have a high risk level, PPSP must submit an action plan containing at least:
a. improvement steps; and b. timeframes for fulfilling the action plan.
(3) Action plans as referred to in paragraph (2) must be submitted within a maximum of 15 (fifteen) working days since the date of notification by the Financial Services Authority.
21. Paragraph (1) of Article 41 is amended so that it reads as follows:
Article 41
(1) PPSP Directors who cause PPSP to fail to meet the provisions as referred to in Article 3 paragraph (5), Article 4, Article 5 paragraph (2), paragraph (3), paragraph (4), and paragraph (5), Article 6 paragraph (1), Article 8 paragraph (3), Article 9 paragraph (2a), paragraph (3), and paragraph (4), Article 9A paragraph (2), paragraph (3), paragraph (4), paragraph (5), paragraph (6), and paragraph (7), Article 10 paragraph (1), Article 11 paragraph (1), paragraph (2), paragraph (3), and paragraph (4), Article 12 paragraph (1), Article 13 paragraph (2), Article 14 paragraph (2) and paragraph (3), Article 19 paragraph (1), Article 21 paragraph (1), Article 22 paragraph (1), Article 23 paragraph (1), Article 24 paragraph (1) and paragraph (3), Article 26 paragraph (1) and paragraph (2), Article 27 paragraph (1), Article 28 paragraph (1) and paragraph (2), Article 29 paragraph (1) and paragraph (2), Article 29A, Article 30, Article 31 paragraph (1), Article 32 paragraph (1), Article 33 paragraph (1), Article 34 paragraph (1), Article 35 paragraph (1), Article 37, Article 39 paragraph (2) and paragraph (3), Article 40 paragraph (1), paragraph (8), and paragraph (11) are subject to administrative sanctions in the form of written warnings. (2) Written warning sanctions as referred to in paragraph (1) are issued by the Financial Services Authority 3 (three) times consecutively, with each validity period being 2 (two) months. (3) The issuance of written warning sanctions as referred to in paragraph (1) is issued to PPSP with copies to the Shareholder. (4) In the event that before the expiration of the warning period as referred to in paragraph (2), PPSP has met the provisions as referred to in paragraph (1), the Financial Services Authority cancels the written warning sanctions. (5) In the event that the validity period of the third written warning expires and PPSP has not been able to meet the provisions as referred to in paragraph (1), the Financial Services Authority informs the Shareholder regarding the imposition of the aforementioned written warning sanctions.
Article II
This Financial Services Authority Regulation takes effect on the date of enactment.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja

For the information of everyone, ordering the enactment of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia. Established in Jakarta on July 6, 2022 CHAIRMAN OF THE BOARD OF COMMISSIONERS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed WIMBOH SANTOSO Enacted in Jakarta on July 7, 2022 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, signed YASONNA H.LAOLY STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2022 NUMBER 6/OJK

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 12 /POJK.05/2022
ON
AMENDMENT TO FINANCIAL SERVICES AUTHORITY
REGULATION NUMBER 4/POJK.05/2018
ON
SECONDARY HOUSING FINANCE COMPANIES

I. GENERAL

PPSP is a financial institution in the form of a limited liability company established to conduct business activities in the field of Secondary Housing Finance. PPSP is expected to build and develop the Secondary Housing Finance market in order to increase the capacity and continuity of financing for ownership, habitation, and the availability of affordable housing and settlements for the community. Based on Law Number 21 of 2011 concerning the Financial Services Authority, the regulation and supervision of PPSP are conducted by the Financial Services Authority. Subsequently, the Financial Services Authority has established Financial Services Authority Regulation Number 4/POJK.05/2018 concerning Secondary Housing Finance Companies.

In order to optimize funding facilities from the secondary housing finance market and support the role of PPSP in developing the Secondary Housing Finance market, the government has established Government Regulation of the Republic of Indonesia Number 100 of 2020 concerning the Third Amendment to Government Regulation Number 19 of 2005 concerning Secondary Housing Finance. Generally, that government regulation expands the role and business activities of PPSP.

Financial Services Authority Regulation Number 4/POJK.05/2018 concerning Secondary Housing Finance Companies also includes provisions regarding PPSP business activities. Therefore, the aforementioned Financial Services Authority Regulation needs to be adjusted so that it is in line with the government's objectives and regulations issued by the government regarding PPSP. In light of this, the Financial Services Authority establishes the Financial Services Authority Regulation concerning the Amendment to Financial Services Authority Regulation Number 4/POJK.05/2018 concerning Secondary Housing Finance Companies.

II. ARTICLE BY ARTICLE

Article I
Number 1
It is clear enough.

Number 2
Article 3
Paragraph (1)
It is clear enough.

Paragraph (2)
Deleted.

Paragraph (3)
What is meant by "branch office" is an office that can operate functional activities located outside the head office of PPSP, including branch offices of PPSP's Sharia units (UUS PPSP).

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Number 3
Article 4
It is clear enough.

Number 4
Article 8
Paragraph (1)
Letter a
It is clear enough.

Letter b
Loan Disbursement and/or Financing Disbursement to support financing for the sustainability of ownership, habitation, and the availability of housing and/or settlements includes, among others:

1. housing ownership financing;
2. financing for the construction of houses on self-owned land;
3. financing for house repair/renovation;
4. financing for the construction of housing projects and/or apartment projects to support the availability of housing and settlements;
5. micro-housing financing (micro housing finance);
6. house release financing (reverse mortgage);
7. financing for houses with lease-purchase schemes; and
8. financing for government-business cooperation (KPBU) in the field of housing and settlements.
   Examples of houses include standalone houses, apartments, business houses, and/or other types of houses based on applicable legislation.
   Loan Disbursement and/or Financing Disbursement does not include primary financing to any party except for the implementation of special tasks from the government.

Letter c
What is meant by "capacity enhancement" includes, among others, providing training or capacity building for housing finance organizers. Examples include providing training or assistance. Examples of parties involved in housing and/or settlement financing include Rural Credit Banks, Regional Development Banks, and Finance Companies.

Letter d
What is meant by "special tasks from the government" is the implementation of business activities based on assignments originating from the central government, manifested either in legislation, decisions established by the central government, or letters from ministers handling financial affairs.

Letter e
What is meant by "other business activities" are business activities other than Secondary Housing Finance and the implementation of special tasks from the government, conducted in support of development and enhancement in the field of housing and/or settlement financing.

Paragraph (2)
It is clear enough.

Paragraph (3)
What is meant by "adl" is placing something in its proper place, giving something only to those entitled, and treating something according to its position.

What is meant by "tawazun" includes the balance of material and spiritual aspects, private and public aspects, financial sector and real sector, business and social aspects, and the balance of utilization and sustainability aspects.

What is meant by "maslahah" is all forms of goodness with worldly and hereafter dimensions, material and spiritual, individual and collective, and must meet 3 (three) elements, namely Sharia compliance (halal), beneficial and bringing goodness (thoyib) in all overall aspects that do not cause harm.

What is meant by "alamiyah" is something that can be done by, with, and for all interested parties (stakeholders) without distinguishing ethnicity, religion, race, and class, in accordance with the spirit of mercy to the universe (rahmatan lil alamin).

What is meant by "riba" is the addition of income illegally (batil), among others, in transactions exchanging goods of the same type that are not equal in quality, quantity, and time of delivery (fadhl), or in loan transactions requiring the facility recipient to return funds received exceeding the principal loan due to the passage of time (nasi’ah).

What is meant by "maisir" is a transaction contingent on an uncertain and speculative state.

What is meant by "gharar" is a transaction where the object is unclear, not owned, not known to exist, or cannot be delivered at the time of the transaction, unless otherwise regulated by Sharia.

What is meant by "zalim" is a transaction that causes injustice to other parties.

What is meant by "risywah" is bribery in the form of money, facilities, or other forms that violate the law as an effort to obtain facilities or ease in a transaction.

What is meant by "maksiat" is human actions that violate moral laws contrary to Sharia Principles.

What is meant by "objek haram" is a transaction where the object is prohibited by Sharia.

Paragraph (4)
It is clear enough.

Number 5
Article 9
Paragraph (1)
It is clear enough.

Paragraph (2)
What is meant by "global coordinator" is the party responsible for coordinating the entire transaction process, including appointing parties involved in the Securitization transaction, coordinating and serving as a liaison with relevant government agencies and institutions, and being responsible for the performance of supporting parties in the Securitization transaction.

What is meant by "securitization arranger," commonly known as arranger, is the party that prepares and manages the entire Securitization transaction.

What is meant by "credit enhancer," commonly known as credit enhancer, is the party that provides facilities to enhance the quality and value of Financial Assets and/or securities in Securitization transactions and for providing loan facilities.

Paragraph (2a)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Number 6
Article 9A
Paragraph (1)
What is meant by "can be recorded" is Financial Assets purchased by PPSP recorded in financial reports until the Financial Assets meet economic feasibility for securitization.

Paragraph (2)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
Examples of Financial Assets that cannot be securitized include Financial Assets purchased from the Original Creditor in the context of Securitization and recorded in PPSP's financial reports in a non-performing condition.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Paragraph (7)
It is clear enough.

Number 7
Article 10
It is clear enough.

Number 8
Article 11
Paragraph (1)
What is meant by "underlying assets" are assets that form the basis for Loan Disbursement and/or Financing Disbursement that can be pledged as collateral.

Paragraph (2)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
Number 1
What is meant by "pledging in accordance with applicable legislation" includes, among others, fiduciary guarantees.

Number 2
It is clear enough.

Number 3
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Number 9
Article 12
It is clear enough.

Number 10
Article 14
Paragraph (1)
It is clear enough.

Paragraph (2)
Examples of direct participation in business entities whose activities support the sustainability of ownership, habitation, and the availability of housing and/or settlements include direct participation in housing development companies.

Paragraph (3)
It is clear enough.

Number 11
Article 19
It is clear enough.

Number 12
Article 26A
It is clear enough.

Number 13
Article 29
It is clear enough.

Number 14
Article 29A
It is clear enough.

Number 15
Article 30
It is clear enough.

Number 16
Article 31
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
Deleted.

Paragraph (4)
Deleted.

Number 17
Article 35
It is clear enough.

Number 18
Article 36
It is clear enough.

Number 19
It is clear enough.

Number 20
Article 39
It is clear enough.

Number 21
Article 41
It is clear enough.

Article II
It is clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6/OJK