Financial Services Authority Regulation Number 16/POJK.04/2021 Regarding Amendments to Financial Services Authority Regulation Number 57/POJK.04/2020 Concerning the Offering of Securities Through Information Technology-Based Crowdfunding Services

EXTRACT
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 16 /POJK.04/2021
CONCERNING
AMENDMENTS TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 57/POJK.04/2020 CONCERNING OFFERING OF SECURITIES THROUGH INFORMATION TECHNOLOGY-BASED CROWDFUNDING SERVICES BY THE GRACE OF GOD ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: a. that in order to adjust compliance obligations for private electronic system organizers to register with the ministry responsible for government affairs in the field of communication and informatics; b. that in order to provide legal clarity and certainty as referred to in letter a, it is necessary to make adjustments to the Financial Services Authority Regulation Number 57/POJK.04/2020 concerning the Offering of Securities Through Information Technology-Based Crowdfunding Services;
c. that based on considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation regarding Amendments to the Financial Services Authority Regulation Number
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

57/POJK.04/2020 concerning the Offering of Securities Through Information Technology-Based Crowdfunding Services; Recalling: 1. Law Number 8 of 1995 concerning Capital Markets (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608);
2. 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);
3. Financial Services Authority Regulation Number
57/POJK.04/2020 concerning the Offering of Securities Through Information Technology-Based Crowdfunding Services (State Gazette of the Republic of Indonesia Year 2020 Number 281, Supplement to the State Gazette of the Republic of Indonesia Number 6594); DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION REGARDING AMENDMENTS TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 57/POJK.04/2020 CONCERNING OFFERING OF SECURITIES THROUGH INFORMATION TECHNOLOGY-BASED CROWDFUNDING SERVICES.
Article I
Several provisions in the Financial Services Authority Regulation Number 57/POJK.04/2020 concerning the Offering of Securities Through Information Technology-Based Crowdfunding Services (State Gazette of the Republic of Indonesia Year 2020 Number 281, Supplement to the State Gazette of the Republic of Indonesia Number 6594) are amended as follows:

1. Article 6 provisions are deleted.
2. Article 13 paragraph (1) letter e provisions are deleted and the License Application Appendix letter e is deleted, so that Article 13 reads as follows:

Article 13
(1) License applications from Organizers as referred to in Article 5 are submitted by the Organizer to the Executive Head of Capital Market Supervision according to the format of the Organizer's License Application contained in the Appendix which is an inseparable part of this Financial Services Authority Regulation, accompanied by at least the following documents:
a. photocopy of the deed of establishment of the legal entity; b. photocopy of the latest amendment to the articles of association, which has been approved or agreed upon by the competent authority or notified to the competent authority, containing financial service business activities encompassing Crowdfunding Services;
c. shareholder data, if the Organizer is a limited liability company:

1. for individual shareholders, by attaching:
   a) photocopy of identification cards in the form of resident identity cards or passports for foreign citizens, which are still valid; b) photocopy of Taxpayer Identification Number; c) curriculum vitae according to the format of the Curriculum Vitae contained in the Appendix which is an inseparable part of this Financial Services Authority Regulation, completed with the latest color passport-sized photo measuring 4x6 cm; and d) statement from the shareholder according to the format of the Statement Letter of Individual Shareholders contained in the Appendix which is an inseparable part of this Financial Services Authority Regulation;

2. for corporate shareholders,
   by attaching:
   a) photocopy of the deed of establishment of the legal entity and photocopy of the latest amendment to the articles of association, which has been approved or agreed upon by the competent authority or notified to the competent authority; b) statement from the shareholder according to the format of the Statement Letter of Corporate Shareholders contained in the Appendix which is an inseparable part of this Financial Services Authority Regulation; and c) photocopy of the Taxpayer Identification Number of the corporate entity;

3. for central government shareholders,
   by attaching government regulations regarding state capital participation for the establishment of companies; and

4. for regional government shareholders,
   by attaching regional regulations regarding regional capital participation for the establishment of companies; d. director and board of commissioners data:

5. photocopy of identification cards in the form of resident identity cards or passports for foreign citizens, which are still valid;

6. photocopy of Limited Stay Permit Cards or Permanent Stay Permit Cards for foreign citizens;

7. curriculum vitae according to the format
   Curriculum Vitae contained in the
   Appendix which is an inseparable part of
   this Financial Services Authority
   Regulation, completed with the latest color passport-sized photo measuring 4x6 cm;

8. photocopy of Taxpayer Identification Number; and

9. statement from each member of the board of directors and members of the board of commissioners according to the format of the Statement Letter of Board of Directors Members and Statement Letter of Board of Commissioners Members contained in the Appendix which is an inseparable part of this Financial Services Authority Regulation;
   e. Deleted; f. organizational structure of the Organizer; g. guidelines or standard operating procedures related to the implementation of anti-money laundering and counter-terrorism financing programs; h. work plan for the first 1 (one) year containing at least:

10. description of business activities to be carried out;

11. targets and steps taken to achieve the aforementioned targets; and

12. financial report projections for the next 1 (one) year;
    i. evidence of Electronic System readiness and Organizer operational activity data according to the format of Electronic System Infrastructure Readiness and Operational Activity Data List contained in the Appendix which is an inseparable part of this Financial Services Authority Regulation;

j. operational readiness evidence consisting of:

1. proof of ownership or control of office buildings, office rooms, or service units, in the form of photocopies of land ownership certificates, building use rights, use rights, or agreements for the use of buildings or rooms; and
2. list of inventory and office equipment;
   k. standard operating procedures regarding services to Users;
   l. standard operating procedures regarding the execution of Securities trading;
   m. photocopy of Taxpayer Identification Number in the name of the Organizer; n. agreement with Custodian Banks and Depository and Clearing Institutions; o. statement letter stating that it will appoint a party responsible for supervision related to the fulfillment of Shariah principles in the capital market in the event that the Organizer serves Sukuk offerings by Issuers through Crowdfunding Services, if the Organizer does not have a Shariah supervisory board; p. recommendation from an association recognized by the Financial Services Authority; and q. evidence of expertise and/or background in the field of Information Technology as referred to in Article 12 paragraph (1) letters a and evidence of expertise as referred to in Article 12 paragraph (1) letter b. (2) For Organizers that are entities conducting business activities based on Shariah principles, in addition to submitting documents as referred to in paragraph (1), Organizers must submit at least the following documents:

a. photocopy of the Organizer's articles of association stating that business activities and types of business and its management are conducted based on Shariah principles; b. resolution of the general meeting of shareholders regarding the appointment of the Shariah supervisory board; and
c. photocopy of the capital market Sharia expert license held by the Shariah supervisory board.
(3) The Financial Services Authority reviews the license applications submitted by the Organizer.
(4) The Financial Services Authority may request information, document completeness, and/or presentations on the Electronic System or other actions from the Organizer. (5) In the event that the Organizer does not fulfill the requests as referred to in paragraph (4) no later than 90 (ninety) days after the date of the Financial Services Authority's request letter, the Organizer is deemed to have canceled the license application. (6) The Organizer is deemed not to have canceled the license application as referred to in paragraph (5) if the Organizer can explain to the Financial Services Authority that fulfilling the requests as referred to in paragraph (4) requires more than 90 (ninety) days. (7) The Financial Services Authority grants approval or rejection of the license application within a maximum of 20 (twenty) working days after the complete license application documents are received. (8) License applications automatically receive Financial Services Authority approval if the time frame as referred to in paragraph (7) is exceeded.
3. Between Part Five and Part Six, insert 1 (one) part, namely Part Five A, and between Article 15 and Article 16, insert 1 (one) article, namely Article 15A so that it reads as follows:
Part Five A
Electronic System Registration
Article 15A
(1) Organizers who have obtained a business license from the Financial Services Authority as referred to in Article 5 are required to be registered as electronic system organizers at the ministry responsible for government affairs in the field of communication and informatics. (2) Organizers as referred to in paragraph (1) are prohibited from serving securities offerings by Issuers before the Organizer submits the electronic system organizer registration certificate to the Financial Services Authority. (3) The prohibition as referred to in paragraph (2) does not apply to Organizers who:
a. have obtained licenses as referred to in paragraph (1) which are expansions of business activities from Information Technology-Based Equity Crowdfunding Service Providers (Equity Crowdfunding); and b. conduct Crowdfunding Services in the form of equity securities offerings in the form of shares.

4. Article 85 paragraph (1) provisions are amended so that Article 85 reads as follows:
   Article 85
   (1) Any party violating the provisions as referred to in Article 5, Article 12 paragraph (1), Article 15, Article 15A paragraph (1) and paragraph (2), Article 16 paragraph (1), paragraph (2), paragraph (3), and paragraph (5), Article 17, Article 18 paragraph (1) and paragraph (2), Article 19, Article 20 paragraph (1), Article 21, Article 22, Article 23 paragraph (1) and paragraph (3), Article 24 paragraph (1), paragraph (2), and paragraph (4), Article 25, Article 26 paragraph (2), Article 27, Article 29 paragraph (2), Article 30, Article 31, Article 32, Article 34 paragraph (2), paragraph (3), and paragraph (5), Article 37 paragraph (1), paragraph (4), paragraph (5), paragraph (6), and paragraph (7), Article 38, Article 40 paragraph (1), paragraph (3), paragraph (4), paragraph (6), paragraph (7), and paragraph (8), Article 41 paragraph (1), paragraph (3), paragraph (5), paragraph (6), and paragraph (7), Article 42 paragraph (2), paragraph (3), paragraph (6), paragraph (7), and paragraph (8), Article 43 paragraph (2), paragraph (3), and paragraph (6), Article 46 paragraph (1), Article 47 paragraph (1), paragraph (2), paragraph (3), paragraph (5), and paragraph (6), Article 49 paragraph (2), paragraph (3), and paragraph (4), Article 50 paragraph (1), paragraph (2), paragraph (4), and paragraph (5), Article 51 paragraph (1), paragraph (2), paragraph (3), and paragraph (5), Article 52, Article 53, Article 55, Article 56 paragraph (2), Article 57 paragraph (3), Article 58 paragraph (2), Article 59 paragraph (1) and paragraph (3), Article 60, Article 61, Article 62 paragraph (4), paragraph (5), and paragraph (6), Article 63 paragraph (4) and paragraph (5), Article 64 paragraph (4), Article 66, Article 67, Article 68 paragraph (2), Article 69, Article 70, Article 71 paragraph (1) and paragraph (2), Article 72, Article 73 paragraph (1), Article 74, Article 77, Article 78, Article 79, Article 80, Article 81 paragraph (1) and paragraph (3), Article 82, Article 83, shall be subject to administrative sanctions. (2) Sanctions as referred to in paragraph (1) are also imposed on parties causing the violations as referred to in paragraph (1).

(3) Sanctions as referred to in paragraph (1) and paragraph (2) are imposed by the Financial Services Authority.
(4) Administrative sanctions as referred to in paragraph (1) consist of:
a. written warning; b. fines, i.e., the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and/or g. cancellation of registration.
(5) Administrative sanctions as referred to in paragraph (4) letters b, c, d, e, f, or g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (4) letter a. (6) Administrative sanctions in the form of fines as referred to in paragraph (4) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (4) letters c, d, e, f, or g. (7) Procedures for imposing sanctions as referred to in paragraph (3) are carried out in accordance with applicable legislation.
Article II

1. For Organizers who have already registered as electronic system organizers at the ministry responsible for government affairs in the field of communication and informatics but do not yet comply with the provisions of legislation regarding the registration of private electronic system organizers, the fulfillment of obligations as referred to in Article 15A paragraph (1) is done by submitting the electronic system organizer registration certificate that complies with the provisions of legislation governing the registration of private electronic system organizers to the Financial Services Authority.
2. This Financial Services Authority Regulation takes effect on the date of its promulgation.

This extract is in accordance with the original Acting Director of Legal Department 1 Legal Department signed Evi Maria In order for everyone to know, ordering the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia. Established in Jakarta on August 25, 2021 CHAIRMAN OF THE COMMISSIONERS BOARD FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed WIMBOH SANTOSO Promulgated in Jakarta on August 26, 2021 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, signed YASONNA H. LAOLY STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2021 NUMBER 193

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 16 /POJK.04/2021
CONCERNING
AMENDMENTS TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 57/POJK.04/2020 CONCERNING OFFERING OF SECURITIES THROUGH INFORMATION TECHNOLOGY-BASED CROWDFUNDING SERVICES
I. GENERAL
There are issues regarding the fulfillment of licensing requirements as Crowdfunding Service Providers caused by differences in regulations, particularly concerning the obligation of private electronic system organizers to register with the ministry responsible for government affairs in the field of communication and informatics. In relation to this matter, in order to harmonize these differing regulatory policies, it is necessary to make adjustments by refining the content of the regulations in the Financial Services Authority Regulation Number 57/POJK.04/2020 concerning the Offering of Securities Through Information Technology-Based Crowdfunding Services, specifically adjustments regarding the documentation requirements for Crowdfunding Service Provider license applications. Refinements to this Financial Services Authority Regulation are necessary to provide legal certainty, particularly for Crowdfunding Service Providers in fulfilling licensing requirements as Crowdfunding Service Providers. In relation to this matter, the Financial Services Authority establishes a Financial Services Authority Regulation regarding Amendments to the Financial Services Authority Regulation Number 57/POJK.04/2020 concerning the Offering of Securities Through Information Technology-Based Crowdfunding Services.
II. ARTICLE BY ARTICLE
Article I
Item 1
Article 6
Deleted.
Item 2
Article 13
Paragraph (1)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Item 1
Clear enough.
Item 2
Clear enough.
Item 3
Clear enough.
Item 4
What is meant by "local government" is Provincial Local Government or Regency/City Local Government.
Letter d
What is meant by "directors":
a. for Organizers in the form of limited liability companies, are directors as referred to in Laws concerning limited liability companies; or b. for Organizers in the form of cooperative legal entities, are managers as referred to in Laws concerning cooperatives. What is meant by "board of commissioners":
a. for Organizers in the form of limited liability companies, are boards of commissioners as referred to in Laws concerning limited liability companies; or b. for Organizers in the form of cooperative legal entities, are supervisors as referred to in Laws concerning cooperatives. Letter e Deleted. Letter f Clear enough. Letter g Clear enough. Letter h Clear enough. Letter i Clear enough. Letter j Clear enough. Letter k Clear enough. Letter l Clear enough. Letter m Clear enough. Letter n Clear enough. Letter o Clear enough. Letter p Clear enough.

Letter q
Expertise and/or background in the field of Information Technology is evidenced among others by having expertise certificates or letters of work experience for at least 1 (one) year in the field of Information Technology. Paragraph (2) Clear enough. Paragraph (3) In reviewing license applications from Organizers, the Financial Services Authority among others conducts:
a. review and verification of documents; b. requests for presentations on the concept design and draft of the Electronic System and Organizer business processes;
c. verification of substance and Electronic System readiness;
d. requests to present the Electronic System; e. assessment and testing of Organizers; and f. conducting visits to the Organizer's office.
Paragraph (4)
Examples of other actions include moving the office to a building or office room suitable for its purpose and requirements.
Paragraph (5)
What is meant by "day" is calendar day.
Paragraph (6)
Clear enough.
Paragraph (7)
Letters of approval or rejection of license applications are addressed to the Organizer with copies to the Depository and Clearing Institution.
What is meant by "complete" is complete in terms of document completeness as well as complete in terms of substance according to the requirements in this Financial Services Authority Regulation. Paragraph (8) Clear enough. Item 3
Article 15A
Paragraph (1)
What is meant by "obtaining a business license from the Financial Services Authority" is obtaining a business license as a Crowdfunding Service Provider in the Offering of Securities Through Information Technology-Based Crowdfunding Services (Securities Crowdfunding Organizer). Paragraph (2) The registration certificate is considered submitted when the Organizer has received notification of acceptance from the Financial Services Authority. Paragraph (3) Clear enough. Item 4
Article 85
Clear enough.
Article II
Item 1
Clear enough.
Item 2
Clear enough.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6714

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 16 /POJK.04/2021
CONCERNING
AMENDMENTS TO THE FINANCIAL SERVICES
AUTHORITY REGULATION NUMBER 57/POJK.04/2020 CONCERNING OFFERING OF SECURITIES THROUGH CROWDFUNDING SERVICES BASED ON INFORMATION TECHNOLOGY ORGANIZER LICENSE APPLICATION FORM Number : ....., ................ 20... Attachment :
Subject : Organizer License Application for Crowdfunding Services To The Executive Head of Capital Market Supervision in Jakarta Referring to Financial Services Authority Regulation Number 57/POJK.04/2020 concerning the Offering of Securities Through Information Technology-Based Crowdfunding Services as amended by Financial Services Authority Regulation Number ... /POJK.04/2021 concerning Amendments to Financial Services Authority Regulation Number 57/POJK.04/2020 Concerning the Offering of Securities Through Information Technology-Based Crowdfunding Services, we hereby submit an application to obtain a business license as an Organizer:
Applicant Name : ....................................................
Applicant Position : ....................................................
Applicant Address : ....................................................

City .....
Province .....
Postal Code .....
Applicant Telephone Number : ....................................................
Applicant Mobile Phone Number
: ....................................................
Applicant Email : ....................................................
Company Name : PT/Cooperative*)/.....)
Company Address : ....................................................
City .....
Province .....
Postal Code .....
Company Telephone/Fax Number : ....................................................
Company Website Address
: ....................................................
Company Email : ....................................................
To complete the aforementioned application, we hereby submit the following documents:
a. photocopy of the deed of establishment of the legal entity; b. photocopy of the latest amendment to the articles of association, which has been approved or agreed upon by the competent authority or notified to the competent authority, containing at least:

1. name and domicile;
2. financial service business activities encompassing Crowdfunding Services;
3. capitalization;
4. ownership; and
5. authority, responsibilities, and term of office of directors and board of commissioners or managers and supervisors.
   c. shareholder data, if the Organizer is a limited liability company:
6. for individual shareholders, by attaching:
   a) photocopy of identification cards in the form of resident identity cards or passports for foreign citizens, which are still valid; b) photocopy of Taxpayer Identification Number;

c) curriculum vitae completed with the latest color passport-sized photo measuring 4x6 cm; and d) stamped statement letter stating:

1. capital deposits to the Organizer do not come from loans;
2. capital deposits to the Organizer do not come from financial crime proceeds;
3. not listed in the bad debt list organized by the Financial Services Authority;
4. never convicted for committing criminal offenses in the field of financial services and/or economy based on final court decisions in the last 5 (five) years;
5. never convicted for committing crimes based on final court decisions in the last 5 (five) years;
6. never declared bankrupt or guilty causing a company/business to be declared bankrupt based on final court decisions in the last 5 (five) years; and
7. never served as controlling shareholders, board of directors members, or board of commissioners members, at financial service companies whose business licenses were revoked due to violations in the last 5 (five) years;

2. for shareholders that are corporate entities, by attaching:
   a) photocopy of the deed of establishment of the legal entity along with photocopy of the latest amendment to the articles of association, which has been approved or agreed upon by the competent authority or notified to the competent authority; b) shareholder statement letter stating that:

---

1. capital deposits to the Organizer do not originate from loans;
2. capital deposits to the Organizer do not originate from the proceeds of financial crimes;
3. are not listed in the bad credit list maintained by the Financial Services Authority; and
   c) photocopy of the Legal Entity Tax Identification Number;

3. for the central government, by attaching a government regulation regarding state capital participation for the establishment of the company; and
4. for local governments, by attaching a regional regulation regarding regional capital participation for the establishment of the company;
   d. data on the board of directors and board of commissioners:
5. photocopy of identification in the form of an identity card or passport for foreign citizens, which is still valid;
6. photocopy of Limited Stay Permit Card or Permanent Stay Permit Card for foreign citizens;
7. curriculum vitae completed with a recent 4x6 cm color photograph;
8. photocopy of the Tax Identification Number; and
9. a stamped statement letter from each member of the board of directors and members of the board of commissioners stating:
   a) are not listed in the bad credit list maintained by the Financial Services Authority; b) have never been sentenced for committing criminal offenses in the financial services and/or economic sectors based on a court decision that has acquired permanent legal force within the last 5 (five) years; c) have never been sentenced for committing criminal offenses based on a court decision that has acquired permanent legal force within the last 5 (five) years; d) have never been declared bankrupt or declared guilty of causing a business entity to be declared bankrupt based on a court decision that has acquired permanent legal force within the last 5 (five) years; and e) have never been a shareholder, member of the board of directors, or member of the board of commissioners in a financial service company whose business license was revoked due to violations within the last 5 (five) years; e. Deleted; f. organizational structure of the Organizer; g. guidelines or standard operating procedures related to the implementation of anti-money laundering and counter-terrorism financing programs; h. work plan for the first (1) year containing at least:
10. an overview of the business activities to be carried out;
11. targets and steps taken to achieve the aforementioned targets; and
12. projected financial statements for the next (1) year;
    i. proof of readiness of the Electronic System and data on the Organizer's operational activities;
    j. proof of operational readiness in the form of:
13. proof of ownership or control of office buildings, office rooms, or service units, in the form of photocopies of ownership certificates, building use rights, land use rights, or agreements for the use of buildings or rooms; and
14. a list of office inventory and equipment;
    k. standard operating procedures regarding services to Users;
    l. standard operating procedures regarding the execution of Securities trading;
    m. photocopy of the Tax Identification Number in the name of the Organizer; n. agreements with Custodian Banks and the Securities Custody and Settlement Institution; o. a statement letter stating that it will appoint a party responsible for supervision regarding the fulfillment of Sharia principles in the capital market in the event that the Organizer serves the offering of Sukuk by the Issuer through Crowdfunding Services, if the Organizer does not have a Sharia supervisory board; p. recommendation from an association recognized by the Financial Services Authority; and q. proof of expertise and/or background in the field of Information Technology as well as proof of expertise in the field of law or accounting.

This copy is consistent with the original
Acting Director of Legal Affairs 1
Legal Department signed
Evi Maria

This is our application and for your attention, Sir/Madam*), we express our gratitude.
Sincerely,
Director/Manager
PT/Cooperative*)/...............
Stamp
.................................................
(Clear name and signature)
*) Strike out what is not necessary
) Specify

Established in Jakarta on the date of 25 August 2021 CHAIRMAN OF THE BOARD OF COMMISSIONERS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed WIMBOH SANTOSO