Financial Services Authority Regulation Number 16/POJK.05/2016 Concerning Pension Fund Governance Guidelines

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 16 /POJK.05/2016
CONCERNING
GUIDELINES FOR PENSION FUND GOVERNANCE
BY THE GRACE OF GOD THE ALMIGHTY
THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that with the increasing risk of pension fund asset management and pension program implementation, it is necessary to improve the quality of pension fund implementation that complies with applicable legislation and aligns with general practice through the application of pension fund governance; b. that based on the considerations as referred to in letter a, it is necessary to establish a Financial Services Authority Regulation concerning Guidelines for Pension Fund Governance;

Recalling:

1. Law Number 11 of 1992 concerning Pension Funds (State Gazette of the Republic of Indonesia Year 1992 Number 37, Supplement to the State Gazette Number 3477);
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);

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3. Government Regulation Number 76 of 1992 concerning Employer Pension Funds (State Gazette of the Republic of Indonesia Year 1992 Number 120, Supplement to the State Gazette Number 3507);
4. Government Regulation Number 77 of 1992 concerning Financial Institution Pension Funds (State Gazette of the Republic of Indonesia Year 1992 Number 127, Supplement to the State Gazette Number 3508);

DECIDES:

To establish:
FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING GUIDELINES FOR PENSION FUND GOVERNANCE.

CHAPTER I
GENERAL PROVISIONS

Article 1
In this Financial Services Authority Regulation, the following terms are defined as:

1. Pension Fund is a legal entity that manages and implements a program promising pension benefits.
2. Pension Fund Governance Guidelines are guidelines used as the basis for applying Pension Fund governance.
3. Pension Fund Governance is a process and structure used by Pension Funds to achieve the objectives of pension program implementation while considering the interests of all parties involved in the implementation of the Pension Fund, based on applicable legislation and general practice.
4. Founder is:
   a. a person or entity that forms an Employer Pension Fund; b. a bank or life insurance company that forms a Financial Institution Pension Fund.

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5. Supervisory Board is the Supervisory Board of the Pension Fund.
6. Management is the management of the Pension Fund.
7. Party is an individual, company, joint venture, association, or a group of organized people.
8. Financial Services Authority, hereinafter abbreviated as OJK, is the Financial Services Authority as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.

CHAPTER II
FORMULATION, PRINCIPLES, AND CONTENT OF PENSION FUND GOVERNANCE GUIDELINES

Article 2
Pension Funds must formulate and implement the Pension Fund Governance Guidelines.

Article 3
(1) In formulating and implementing the Pension Fund Governance Guidelines, Pension Funds shall refer to:
a. good Pension Fund governance principles which include:

1. independence, which is a state where the Pension Fund is free from conflicts of interest and/or from the influence or pressure of any Party that is not in accordance with applicable legislation and general practice;
2. transparency, which is a state of Pension Fund implementation that guarantees openness in the process of making and implementing decisions regarding Pension Fund implementation in accordance with applicable legislation and general practice;
3. accountability, which is a state of Pension Fund implementation that can explain the execution of functions of each Party related to the Pension Fund in accordance with applicable legislation and general practice;
4. responsibility, which is a state of Pension Fund implementation that can affirm and explain the role and status of each Party related to the Pension Fund for every process of making and implementing policies in the Pension Fund; and
5. fairness, which is justice and equality in fulfilling the rights of each Party arising from legally binding agreements and applicable legislation and general practice; and
   b. guidelines for the application of Pension Fund governance as contained in the Appendix which is an inseparable part of this OJK Regulation.

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(2) The Pension Fund Governance Guidelines as referred to in paragraph (1) are formulated by the Management and established by the Founder. (3) The Founder, employer, Supervisory Board, Management, and other Parties related to the Pension Fund are responsible for the implementation of the Pension Fund Governance Guidelines as referred to in paragraph (1) in accordance with their respective functions and duties.

Article 4
The Pension Fund Governance Guidelines must at least contain:
a. the purpose and objectives of the guidelines; b. code of conduct which includes governance principles and code of ethics in accordance with general practice;
c. regulations on the position, duties, functions, authority, responsibilities, rights, and obligations of each Party related to the Pension Fund as well as relationships between Parties in accordance with applicable legislation in the field of Pension Funds;
d. technical guidelines which include among others accounting guidelines, investment guidelines, internal control system guidelines, behavior and code of ethics, organization and work procedures, procurement of goods and services, decision-making, membership services, correspondence, information systems, sale/disposal or deletion of problematic investment assets and operational assets, budget preparation, taxation, risk management, funding, and archiving; and e. a statement of compliance with the Pension Fund Governance Guidelines.

Article 5
OJK periodically reviews the guidelines for the application of Pension Fund governance as referred to in Article 3 paragraph (1) letter b.

CHAPTER III
EVALUATION OF GUIDELINE IMPLEMENTATION

Article 6
(1) The Supervisory Board must conduct an evaluation and compile a written evaluation result regarding the implementation of the Pension Fund Governance Guidelines for the current year every year.

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(2) The annual evaluation results as referred to in paragraph (1) must first be submitted to the Management to obtain responses within a reasonable time limit as determined by the Supervisory Board. (3) The annual evaluation results as referred to in paragraph (2) must be submitted by the Supervisory Board to the Founder no later than 6 (six) months after the end of the evaluation period. (4) The Founder uses the evaluation results as referred to in paragraph (3) as consideration material to assess the performance of the Pension Fund. (5) Based on the evaluation results as referred to in paragraph (3), the Founder may request the Management to refine the Pension Fund Governance Guidelines and/or mandate the implementation of Pension Fund Governance in accordance with the Pension Fund Governance Guidelines established by the Founder.

CHAPTER IV
CLOSING PROVISIONS

Article 7
Upon the commencement of this OJK Regulation, the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number KEP-136/BL/2006 concerning Guidelines for Pension Fund Governance is repealed and declared invalid.

Article 8
This OJK Regulation shall come into force on the date of its promulgation.

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In order that everyone knows it, it is ordered to promulgate this OJK Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on 23 February 2016

CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY,

signed

MULIAMAN D. HADAD

Promulgated in Jakarta on 15 March 2016

MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,

signed

YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 48

A copy in accordance with the original
Director of Law 1
Ministry of Law

signed

Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 16 /POJK.05/2016
CONCERNING
GUIDELINES FOR PENSION FUND GOVERNANCE

I. GENERAL

That since 31 December 2012, the functions, duties, and authority for regulation and supervision of financial services activities in the insurance sector, Pension Funds, financing institutions, other financial service institutions, and the capital market sector have shifted from the Minister of Finance and the Capital Market Supervisory Board and Financial Institutions to the Financial Services Authority.

In relation to the above, it is necessary to reorganize the existing regulatory structure, particularly those related to Pension Funds, by converting regulations prior to the formation of the Financial Services Authority into Financial Services Authority Regulations. This reorganization is carried out so that there are Financial Services Authority Regulations concerning Pension Funds that are consistent with Financial Services Authority Regulations in other sectors.

Based on this background, it is necessary to replace the legislation in the Pension Fund sector regulating guidelines for Pension Fund governance, namely the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number KEP-136/BL/2006 dated 21 December 2006 concerning Guidelines for Pension Fund Governance, into a Financial Services Authority Regulation concerning Guidelines for Pension Fund Governance.

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II. ARTICLE BY ARTICLE EXPLANATION

Article 1
Clear enough.

Article 2
Clear enough.

Article 3
Clear enough.

Article 4
Clear enough.

Article 5
Clear enough.

Article 6
Clear enough.

Article 7
Clear enough.

Article 8
Clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5859

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 16 /POJK.05/2016
CONCERNING
GUIDELINES FOR PENSION FUND GOVERNANCE

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GUIDELINES FOR THE APPLICATION OF
GOOD PENSION FUND GOVERNANCE (GPFG)

TABLE OF CONTENTS

Page

TABLE OF CONTENTS............................................................................................. 1
INTRODUCTION....................................................................................... 4
GENERAL PROVISIONS................................................................................ 6
PURPOSE AND OBJECTIVES............................................................................ 7
I CREATION OF A CONDUCIVE SITUATION FOR IMPLEMENTING GPFG ... 8
Basic Principles ..................................................................................... 8
General Guidelines ................................................................................ 8

1. Role of the Regulator ........................................................................ 8
2. Implementation of GPFG by Management and Business Partners ....................... 8
3. Control by Participants ..................................................................... 9
   II CODES OF CONDUCT ........................................................... 10
   A. GPFG Principles ................................................................. 10
   General Principles ..............................................................................
4. Transparency (Transparency) ....................................................
5. Accountability (Accountability) ………………………………………….
6. Responsibility (Responsibility) ………………………………………..
7. Independence (Independency) ………………………………………….
8. Fairness and Equity (Fairness) ……………………………….
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   11
   B. Code of Conduct ………………………………………….…………………. 12 Basic Principles ………………………………………….…………………….. 12
   C. General Guidelines ………………………………………….………………… 12
9. Ethics of Managing Pension Funds ……………………………………… 12
10. Conflict of Interest ………………………………………………… 12
11. Industrial Relations …………………………………………………… 13
    III FOUNDERS, CO-FOUNDERS, MANAGEMENT, AND SUPERVISORY BOARD, PENSION FUNDS ………………………………………….……………………… 14 A. General Principles ………………………………………………………………. 14 B. Founders and Co-Founders ………………………………………………… 14

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Page

1. Basic Principles ……………………………………………………………. 14
2. General Guidelines ………………………………………………………… 14
   a. Duties and Responsibilities of Founders ……………………… 14
   b. Duties and Responsibilities of Co-Founders ................... 15
   c. Authority of Founders ………………………………………………… 15
   C. Pension Fund Management ………………………………………………….. 15
   Basic Principles ………………………………………………………………… 15
   General Guidelines ……………………………………………………………. 16
3. Number of Management Members ……………………………………………. 16
4. Appointment and Dismissal of Management Members .......................... 16
5. Competence and Integrity of Management Members ……………………………… 16
6. Management Functions …………………………………………………. 16
7. Internal Supervision Functions …………………………………………. 17
8. Functions of the Pension Fund Secretary …………………………………… 17
9. Accountability of Management ……………………………………. 17
   D. Supervisory Board ………………………………………………………….. 18 Basic Principles ………………………………………………………………. 18 General Guidelines ……………………………………………………………. 18
10. Composition and Number of Supervisory Board Members ………………………… 18
11. Competence and Integrity of Supervisory Board Members …………………… 18
12. Supervisory Board Supervision Functions ……………………………. 18
13. Committees/Supporting Functions of the Supervisory Board …………………… 19
    E. Relationship Pattern between Founders, Management, and Supervisory Board ........... 20
    Basic Principles ………………………………………………………………. 20
    General Guidelines …………………………………………………………… 20
    IV RELATIONSHIPS WITH BUSINESS PARTNERS, EMPLOYEES, AND PARTICIPANTS 21 Basic Principles …………………………………………………………………. 21 General Guidelines ………………………………………………………………. 21
14. Cooperation with Business Partners …………………………………………. 21
15. Treatment of Employees …………………………………………. 21
16. Treatment of Participants …………………………………………….. 21
    V GUIDELINES FOR IMPLEMENTING GPFG 22
    Basic Principles ……………………….…………………………………………. 22 Implementation Guidelines ………………………………………………………. 22 A. Internal Control Guidelines …………………………………………. 22

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Page

B. Behavior and Code of Ethics Guidelines ……………………………………… 24
C. Risk Management Guidelines …………………………………………. 25
D. Funding Guidelines ……………………………………………………. 26 E. Investment Guidelines ……………………………………………………….. 27 F. Organization and Work Procedure Guidelines …………………………………. 29 G. Budget Preparation Guidelines …………………………………………… 30 H. Accounting Guidelines ……………………………………………………... 32
I. Membership Service Guidelines……………………………………… 32
J. Information System Guidelines ……………………………………………… 33 K. Guidelines for Sale/Disposal or Deletion of Problematic Investment Assets and Operational Assets ………………. 34
L. Taxation Guidelines ……………………………………………………… 35
M. Procurement of Goods and Services Guidelines ……………………………….. 36 N. Decision-Making Guidelines ………………………………………….. 37 O. Archiving Guidelines ………………………………………………………… 38 P. Correspondence Guidelines ………………………………………………… 39
VI STATEMENT OF COMPLIANCE WITH GPFG GUIDELINES ................ 41
Basic Principles …………………………………………………………………….. 41 General Guidelines ………………………………………………………………… 41

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INTRODUCTION

Pension Funds are legal entities that implement Pension Programs, which are programs promising a sum of money paid periodically and linked to reaching a certain age. Pension Programs are implemented with a fund formation system consisting of contributions from Employers (Companies) and Employees (Participants). The assets of Pension Funds must be separate from the assets of their Founders, and managed separately from the assets of their Founders. Pension Funds, as Non-Bank Financial Institutions, are tasked with guaranteeing income continuity after retirement for participants, thereby providing a sense of security.

The fund management institutions in the Pension Fund Industry consist of 2 management institutions: Employer Pension Funds (DPPK) and Financial Institution Pension Funds (DPLK).

There are two types of DPPK Pension Programs: (1) Defined Benefit Pension Programs (PPMP) and (2) Defined Contribution Pension Programs (PPIP). Defined Benefit Pension Programs are those where the pension benefits are definite, based on a predetermined formula, whereas in Defined Contribution programs, the value of pension benefits is not definite and depends on the amount of accumulated contributions and their development returns. In Financial Institution Pension Funds, only one program is known, which is the Defined Contribution program.

In managing pension programs, particularly Defined Benefit Pension Programs, an understanding of asset liability management is needed, which is the Founder's commitment to fulfill its obligations, both due to past service periods and long-term funding to achieve sufficient wealth to pay pensions, carried out through a process of fund collection and management by ensuring that investments made are appropriate with the most efficient costs. Therefore, in managing Pension Funds to meet the expectations of Stakeholders, it needs to be managed professionally. One way is by applying Good Pension Fund Governance (GPFG).

GPFG is a process and structure used by Pension Funds to encourage the development of institutions, resource and risk management efficiently and effectively, as well as the accountability of Pension Fund Management to Participants, Founders/Employers, and other related parties.

GPFG can also be used as one of the benchmarks for Management performance in managing Pension Funds by conducting assessments (evaluations) both internally and externally (independent parties).

This guideline regulates each party directly involved in the Implementation of Pension Funds, namely Founders, Co-Founders, Supervisory Boards, Management, Participants, Employees, and other Business Partners.

This guideline is formulated:

1. In line with the government's efforts to strengthen the Pension Fund industry in the quality improvement program of regulation and supervision which has been formulated in the Financial Sector Policy Package (PKSK) on 5 July 2006.

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2. Using the format issued by the National Governance Policy Committee (KNKG) adjusted to the conditions of Employer Pension Funds.
3. Specifically intended for Employer Pension Funds.
4. Being general, standard, and flexible, considering that the conditions of each Pension Fund are different. In its subsequent application and development, it needs to be adjusted to the conditions of the respective Pension Fund and refinements.
5. Regulating each party directly involved in the implementation of Pension Funds, namely Founders, Co-Founders, Supervisory Boards, Management, Participants, Employees, Related Parties, and other Business Partners.

The Good Pension Fund Governance (GPFG) Guidelines for subsequent development can undergo adjustments and refinements.

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GENERAL PROVISIONS

1. Pension Fund is a legal entity that manages and implements a program promising pension benefits.
2. Employer Pension Fund is a Pension Fund formed by a person or entity employing employees, as the founder, to implement Defined Benefit or Defined Contribution Pension Programs for the benefit of some or all of its employees as participants.
3. Pension Fund Regulations are regulations containing provisions that serve as the basis for implementing pension programs.
4. Pension Program is a program that seeks to provide pension benefits for participants.
5. Participant is any person who meets the requirements of Pension Fund regulations.
6. Employer is the founder or co-founder who employs employees.
7. Founder is a person or entity that forms an Employer Pension Fund.
8. Co-Founder is an employer that participates in an Employer Pension Fund.
9. Management is the Management of the Pension Fund.
10. Supervisory Board is the Supervisory Board of the Pension Fund.
11. Financial Services Authority, hereinafter abbreviated as OJK, is the Financial Services Authority as referred to in Law Number 21 of 2011 concerning the Financial Services Authority;
12. Regulator is the agency that conducts regulation, guidance, and supervision of the Pension Fund industry.
13. Law is Law Number 11 of 1992 concerning Pension Funds.
14. Related Party is a party related to Pension Fund activities such as Founders, Participants, and Regulators.
15. Business Partner is a party that has a cooperation/business relationship in Pension Fund activities, where each party works based on the principle of mutual benefit.
16. Asset liability management is asset management adjusted to the obligations that must be fulfilled by the Pension Fund.
17. Code of Conduct is a behavioral guideline containing management ethics for all levels of the Pension Fund.
18. Checks & balances system is a system for early detection to identify problems/deviations.
19. Reward and punishment system is a system regarding rewards for achieved performance results.

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PURPOSE AND OBJECTIVES

The purpose and objectives of this guideline are to:

1. Increase awareness about the implementation of good governance.
2. Harmonize the perception of each Pension Fund regarding good governance.
3. Serve as a reference for Pension Funds in applying Good Pension Fund Governance (GPFG).

By applying Governance (GPFG), it is expected to:

1. Improve the quality of Pension Fund management that is efficient and effective in the interest of participant welfare.
2. Increase contribution and effectiveness in the implementation of functions and roles of Pension Funds in improving the national economy and development.
3. Prevent and reduce the possibility of conflicts of interest detrimental to Pension Funds.
4. Create a conducive Pension Fund situation.
5. Improve the professionalism of Pension Fund management and supervision.
6. Provide guidelines for Supervisory Boards, Management, and Pension Fund Employees in carrying out their duties and responsibilities according to their respective authorities.
7. Serve as one of the benchmarks for Management performance application.

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CHAPTER I
CREATION OF A CONDUCIVE SITUATION FOR IMPLEMENTING GOOD PENSION FUND GOVERNANCE

Basic Principles

Good Pension Fund Governance is a process and structure used by Pension Funds to encourage the development of institutions, resource and risk management efficiently and effectively, as well as the accountability of Pension Fund Management to Participants, Founders/Employers, and other related parties.

Good Pension Fund Governance is a means of empowering Supervisory Boards and Management. The empowerment of Supervisory Boards and Management is carried out by executing related functions contained therein properly and correctly.

The application of GPFG is supported by three pillars that are interrelated and each must execute its functions well, namely the Regulator as the maker and supervisor of regulation implementation, Pension Funds as the actors, and Participants as users of Pension Fund services.

1. The Regulator creates and consistently supervises legislation, which can support efficient, effective, and transparent Pension Fund management.
2. Pension Funds as actors implementing GPFG.
3. Participants as users of Pension Fund services have concern to conduct objective, constructive, fair, and transparent social control and are accountable.

General Guidelines

1. Role of the Regulator
   a. Conduct regulation, guidance, and supervision in order to ensure compliance with applicable legislation. b. Conduct effective coordination among state organizers in the formulation of legislation by prioritizing policies in accordance with the interests of Pension Funds and participants.
   c. Conduct the execution of functions and authorities with upholding integrity and professionalism.

2. Implementation of GPFG by Management and Business Partners
   a. Apply consistent business ethics so that healthy business can be realized to support the development of the national economy while considering the interests of Participants and Founders. b. Have attitudes and behaviors that demonstrate the Pension Fund's compliance in implementing legislation.

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3. Control by Participants
   a. Actively participate in the implementation of Pension Fund governance through the Supervisory Board. b. Provide input and suggestions for the improvement of Pension Fund implementation.
   c. Conduct social control objectively, constructively, fairly, and transparently.

II CODES OF CONDUCT

A. GPFG Principles

General Principles

1. Transparency (Transparency)
   Transparency is a state of Pension Fund implementation that guarantees openness in the process of making and implementing decisions regarding Pension Fund implementation in accordance with applicable legislation and general practice.

2. Accountability (Accountability)
   Accountability is a state of Pension Fund implementation that can explain the execution of functions of each Party related to the Pension Fund in accordance with applicable legislation and general practice.

3. Responsibility (Responsibility)
   Responsibility is a state of Pension Fund implementation that can affirm and explain the role and status of each Party related to the Pension Fund for every process of making and implementing policies in the Pension Fund.

4. Independence (Independency)
   Independence is a state where the Pension Fund is free from conflicts of interest and/or from the influence or pressure of any Party that is not in accordance with applicable legislation and general practice.

5. Fairness and Equity (Fairness)
   Fairness is justice and equality in fulfilling the rights of each Party arising from legally binding agreements and applicable legislation and general practice.

B. Code of Conduct

Basic Principles

The Code of Conduct is a behavioral guideline containing management ethics for all levels of the Pension Fund.

C. General Guidelines

1. Ethics of Managing Pension Funds
   The management of Pension Funds must be carried out professionally, ethically, and in accordance with applicable legislation and general practice.

2. Conflict of Interest
   Conflicts of interest must be avoided and managed properly. Any conflict of interest that arises must be disclosed and handled in accordance with applicable legislation and general practice.

3. Industrial Relations
   Industrial relations must be maintained harmoniously and in accordance with applicable legislation and general practice.

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III FOUNDERS, CO-FOUNDERS, MANAGEMENT, AND SUPERVISORY BOARD, PENSION FUNDS

A. General Principles

The relationship between Founders, Co-Founders, Management, and Supervisory Boards must be based on good governance principles, namely independence, transparency, accountability, responsibility, and fairness.

B. Founders and Co-Founders

1. Basic Principles
   Founders and Co-Founders have the authority to establish Pension Funds and determine the general direction of Pension Fund implementation.

2. General Guidelines
   a. Duties and Responsibilities of Founders
   Founders have the duty and responsibility to:

1. Establish Pension Funds in accordance with applicable legislation;
2. Determine the general direction of Pension Fund implementation;
3. Appoint and dismiss Supervisory Board members;
4. Approve the Pension Fund Governance Guidelines;
5. Evaluate the performance of the Supervisory Board and Management;
6. Ensure the sustainability of Pension Fund implementation;
7. Fulfill obligations in accordance with applicable legislation and Pension Fund regulations.

b. Duties and Responsibilities of Co-Founders
Co-Founders have the duty and responsibility to:

1. Contribute to the formation of Pension Fund assets;
2. Fulfill obligations in accordance with applicable legislation and Pension Fund regulations;
3. Participate in the implementation of Pension Fund governance.

c. Authority of Founders
Founders have the authority to:

1. Establish Pension Funds;
2. Determine the general direction of Pension Fund implementation;
3. Appoint and dismiss Supervisory Board members;
4. Approve the Pension Fund Governance Guidelines;
5. Evaluate the performance of the Supervisory Board and Management;
6. Determine the policy of Pension Fund implementation.

C. Pension Fund Management

Basic Principles

Management has the duty and responsibility to manage Pension Funds professionally, ethically, and in accordance with applicable legislation and general practice.

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General Guidelines

1. Number of Management Members
   The number of Management members is determined by the Founder in accordance with applicable legislation and Pension Fund regulations.

2. Appointment and Dismissal of Management Members
   Management members are appointed and dismissed by the Founder in accordance with applicable legislation and Pension Fund regulations.

3. Competence and Integrity of Management Members
   Management members must have competence and integrity in managing Pension Funds.

4. Management Functions
   Management functions include:
   a) Managing Pension Fund assets; b) Implementing Pension Fund programs; c) Implementing Pension Fund governance; d) Reporting on Pension Fund implementation; e) Fulfilling obligations in accordance with applicable legislation and Pension Fund regulations.

5. Internal Supervision Functions
   Internal supervision functions are carried out by the Management to ensure the implementation of Pension Fund governance is carried out properly and correctly.

6. Functions of the Pension Fund Secretary
   The Pension Fund Secretary has the function of assisting the Management in carrying out its duties and responsibilities.

7. Accountability of Management
   Management is accountable to the Founder and Supervisory Board for the implementation of its duties and responsibilities.

D. Supervisory Board

Basic Principles

The Supervisory Board has the duty and responsibility to supervise the implementation of Pension Fund governance carried out by the Management.

General Guidelines

1. Composition and Number of Supervisory Board Members
   The composition and number of Supervisory Board members are determined by the Founder in accordance with applicable legislation and Pension Fund regulations.

2. Competence and Integrity of Supervisory Board Members
   Supervisory Board members must have competence and integrity in supervising Pension Fund governance.

3. Supervisory Board Supervision Functions
   Supervisory Board supervision functions include:
   a) Supervising the implementation of Pension Fund governance; b) Evaluating the performance of the Management; c) Providing input and suggestions for the improvement of Pension Fund implementation; d) Reporting on the results of supervision to the Founder.

4. Committees/Supporting Functions of the Supervisory Board
   The Supervisory Board may establish committees/supporting functions to assist in carrying out its supervision functions.

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E. Relationship Pattern between Founders, Management, and Supervisory Board

Basic Principles

The relationship between Founders, Management, and Supervisory Boards must be based on good governance principles, namely independence, transparency, accountability, responsibility, and fairness.

General Guidelines

1. Founders have the authority to appoint and dismiss Supervisory Board members and determine the general direction of Pension Fund implementation.
2. Management has the duty and responsibility to manage Pension Funds professionally, ethically, and in accordance with applicable legislation and general practice.
3. The Supervisory Board has the duty and responsibility to supervise the implementation of Pension Fund governance carried out by the Management.
4. The relationship between Founders, Management, and Supervisory Boards must be based on mutual trust and cooperation.

IV RELATIONSHIPS WITH BUSINESS PARTNERS, EMPLOYEES, AND PARTICIPANTS

Basic Principles

Pension Funds must maintain good relationships with Business Partners, Employees, and Participants.

General Guidelines

1. Cooperation with Business Partners
   Cooperation with Business Partners must be carried out in accordance with applicable legislation and general practice.

2. Treatment of Employees
   Employees must be treated fairly and in accordance with applicable legislation and general practice.

3. Treatment of Participants
   Participants must be treated fairly and in accordance with applicable legislation and general practice.

V GUIDELINES FOR IMPLEMENTING GPFG

Basic Principles

The implementation of GPFG must be carried out professionally, ethically, and in accordance with applicable legislation and general practice.

Implementation Guidelines

A. Internal Control Guidelines

1. Pension Funds must establish an internal control system to ensure the implementation of Pension Fund governance is carried out properly and correctly.
2. The internal control system must cover all aspects of Pension Fund implementation, including asset management, program implementation, and governance implementation.
3. The internal control system must be evaluated periodically to ensure its effectiveness.

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B. Behavior and Code of Ethics Guidelines

1. Pension Funds must establish a Code of Conduct that contains management ethics for all levels of the Pension Fund.
2. The Code of Conduct must be implemented by all levels of the Pension Fund.
3. Violations of the Code of Conduct must be handled in accordance with applicable legislation and general practice.

C. Risk Management Guidelines

1. Pension Funds must establish a risk management system to identify, measure, monitor, and control risks that may arise in Pension Fund implementation.
2. The risk management system must cover all types of risks that may arise in Pension Fund implementation, including market risk, credit risk, liquidity risk, operational risk, and legal risk.
3. The risk management system must be evaluated periodically to ensure its effectiveness.

D. Funding Guidelines

1. Pension Funds must establish a funding policy to ensure the sustainability of Pension Fund implementation.
2. The funding policy must be based on actuarial calculations and must be reviewed periodically.
3. Pension Funds must fulfill its funding obligations in accordance with applicable legislation and Pension Fund regulations.

E. Investment Guidelines

1. Pension Funds must establish an investment policy to ensure the safety, liquidity, and profitability of Pension Fund assets.
2. The investment policy must be based on the risk profile of Pension Fund assets and must be reviewed periodically.
3. Pension Funds must implement its investment policy in accordance with applicable legislation and Pension Fund regulations.

F. Organization and Work Procedure Guidelines

1. Pension Funds must establish an organization and work procedure that supports the implementation of Pension Fund governance.
2. The organization and work procedure must clearly define the duties, responsibilities, and authorities of each level of the Pension Fund.
3. The organization and work procedure must be reviewed periodically to ensure its effectiveness.

G. Budget Preparation Guidelines

1. Pension Funds must establish a budget preparation procedure to ensure the efficient and effective use of Pension Fund assets.
2. The budget preparation procedure must be based on the Pension Fund's strategic plan and must be reviewed periodically.
3. Pension Funds must implement its budget in accordance with applicable legislation and Pension Fund regulations.

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H. Accounting Guidelines

1. Pension Funds must establish an accounting system that complies with applicable accounting standards.
2. The accounting system must provide accurate and reliable information on Pension Fund assets, liabilities, and net assets.
3. Pension Funds must prepare financial statements in accordance with applicable legislation and accounting standards.

I. Membership Service Guidelines

1. Pension Funds must establish a membership service procedure to ensure the efficient and effective implementation of Pension Fund programs.
2. The membership service procedure must clearly define the rights and obligations of Participants.
3. Pension Funds must implement its membership service procedure in accordance with applicable legislation and Pension Fund regulations.

J. Information System Guidelines

1. Pension Funds must establish an information system that supports the implementation of Pension Fund governance.
2. The information system must provide accurate and reliable information on Pension Fund assets, liabilities, and net assets.
3. The information system must be secured to prevent unauthorized access.

K. Guidelines for Sale/Disposal or Deletion of Problematic Investment Assets and Operational Assets

1. Pension Funds must establish a procedure for the sale/disposal or deletion of problematic investment assets and operational assets.
2. The procedure must be based on applicable legislation and general practice.
3. The sale/disposal or deletion of problematic investment assets and operational assets must be reported to the Supervisory Board and Founder.

L. Taxation Guidelines

1. Pension Funds must establish a taxation policy to ensure compliance with applicable tax regulations.
2. The taxation policy must be based on applicable tax regulations and must be reviewed periodically.
3. Pension Funds must fulfill its tax obligations in accordance with applicable legislation and tax regulations.

M. Procurement of Goods and Services Guidelines

1. Pension Funds must establish a procurement procedure for goods and services that is transparent, accountable, and efficient.
2. The procurement procedure must be based on applicable legislation and general practice.
3. Pension Funds must implement its procurement procedure in accordance with applicable legislation and Pension Fund regulations.

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N. Decision-Making Guidelines

1. Pension Funds must establish a decision-making procedure that is transparent, accountable, and efficient.
2. The decision-making procedure must be based on applicable legislation and general practice.
3. Pension Funds must implement its decision-making procedure in accordance with applicable legislation and Pension Fund regulations.

O. Archiving Guidelines

1. Pension Funds must establish an archiving procedure to ensure the safety and availability of Pension Fund documents.
2. The archiving procedure must be based on applicable legislation and general practice.
3. Pension Funds must implement its archiving procedure in accordance with applicable legislation and Pension Fund regulations.

P. Correspondence Guidelines

1. Pension Funds must establish a correspondence procedure to ensure the efficient and effective communication between Pension Funds and related parties.
2. The correspondence procedure must be based on applicable legislation and general practice.
3. Pension Funds must implement its correspondence procedure in accordance with applicable legislation and Pension Fund regulations.

VI STATEMENT OF COMPLIANCE WITH GPFG GUIDELINES

Basic Principles

Pension Funds must comply with the GPFG Guidelines.

General Guidelines

1. Pension Funds must include a statement of compliance with the GPFG Guidelines in its annual report.
2. The statement of compliance must be signed by the Chairman of the Supervisory Board and the Chairman of the Management.
3. If the Pension Fund does not comply with the GPFG Guidelines, the Pension Fund must explain the reasons for non-compliance and the steps taken to achieve compliance.

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  c. Not taking actions that are collusive, corrupt, and nepotistic.
  d. Improving management quality based on GPFG principles.

3. Control by Participants
   a. Making efforts to consolidate participant concern regarding the services provided by the Pension Fund. b. Providing communicative media to convey opinions and suggestions in an objective, constructive, and responsible manner.
   c. Participants are required to understand Pension Fund legislation with full responsibility.

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  CHAPTER II
  BEHAVIORAL PRINCIPLES
  A. GPFG Principles
  General Principles
  Every Pension Fund must ensure that the Good Pension Fund Governance (GPFG) principles are applied in Pension Fund management activities, in order to maintain the continuity of its operations. The GPFG principles, namely transparency, accountability, responsibility, independence, and fairness and equity, are necessary to achieve sustainable performance while still considering the interests of all relevant parties.

1. Transparency
   Basic Principle
   To maintain objectivity in carrying out its activities, the Pension Fund must apply openness and transparency in all delivery and disclosure of material and relevant information regarding the Pension Fund in a timely, adequate, clear, and reliable manner. General Guidelines a. The Pension Fund must disclose information in a timely, adequate, clear, accurate, and comparable manner, and easily accessible by relevant parties according to their rights. b. Information to be disclosed includes vision, mission, financial condition, composition of the Board of Directors, Board of Supervisors, risk management, internal supervision and control systems, GPFG system and implementation, and important events that can affect the condition of the Pension Fund and other relevant information.
   c. The openness principle adopted by the Pension Fund does not reduce the obligation to meet confidentiality provisions in accordance with applicable legislation, such as confidentiality regarding each participant's data.
   d. The Pension Fund's policies must be written and communicated to related parties entitled to obtain information about such policies.

2. Accountability
   Basic Principle
   The clarity of functions, implementation, and accountability of the Pension Fund must be established in writing. Pension Fund management is carried out by establishing functions, activities, and tasks to be performed, in accordance with the direction and purpose of the establishment of the Pension Fund. The application of the accountability principle is accompanied by implementing control and supervision systems and performance assessment for all levels of the Pension Fund.

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  General Guidelines a. The Pension Fund establishes clear tasks and responsibilities for each organizational device in line with the vision and mission and guided by the code of conduct. b. The Pension Fund believes that all organizational devices have competence according to their tasks and responsibilities and understand their role in implementing GPFG.
  c. The Pension Fund ensures the existence of a checks & balances system in Pension Fund management.
  d. The Pension Fund has performance measures for all its levels based on consistently agreed measures and has a reward and punishment system.

3. Responsibility
   Basic Principle
   The Pension Fund has responsibility towards Participants and Founders/Employers and complies with Law Number 11 of 1992 concerning Pension Funds and other implementing regulations to ensure the continuity of pension benefit payments. General Guidelines The Pension Fund adheres to the principle of prudence in risk control, guided by applicable provisions.

4. Independence
   Basic Principle
   The Pension Fund is managed professionally without conflicts of interest and influence/pressure from any party, based on applicable legislation and principles of healthy activity management. General Guidelines a. The Pension Fund avoids domination by any party and is not influenced by one-sided interests and is free from conflicts of interest. b. The Pension Fund makes objective decisions and is free from all pressure from any party.
   c. The Pension Fund's levels carry out their functions in accordance with applicable provisions and do not dominate each other or shift responsibility between one another, thereby creating a check and balance.

5. Fairness and Equity
   Basic Principle
   The Pension Fund always considers the interests of all relevant parties based on the principle of equal treatment and the principle of fair benefits. Fairness and equity in fulfilling the rights of relevant parties arising from agreements and applicable legislation.

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  General Guidelines a. The Pension Fund must provide opportunities for relevant parties to provide input and convey opinions for the interests of the Pension Fund and open access to information in accordance with the transparency principle. b. The Pension Fund provides fair treatment to relevant parties in accordance with the benefits and risks obtained by the Pension Fund.
  c. The Pension Fund provides equal treatment to Employees to advance their careers and carry out their tasks professionally without discrimination.

B. Code of Conduct
Basic Principle
As a foundation for achieving long-term success, the implementation of GPFG needs to be supported by a culture and values rooted in the Pension Fund. The Pension Fund's culture is formed through the implementation of continuous values/ethics and is embodied in the Code of Conduct.

C. General Guidelines

1. Ethics in Managing Pension Funds
   a. The Pension Fund must have management ethics that essentially contain the Pension Fund's ethics as a guide for ethical behavior from the Board of Supervisors, Board of Directors, and all levels of the Pension Fund. b. The Board of Directors, Board of Supervisors, and Employees of the Pension Fund are prohibited from giving or offering, directly or indirectly, anything to government officials, other parties, or individuals to influence or as compensation for what has been done and other actions in accordance with applicable legislation.
   c. The Pension Fund is prohibited from giving donations in any form to anyone, unless permitted by applicable regulations.
   d. The Board of Directors, Board of Supervisors, and Employees of the Pension Fund ensure that the Pension Fund meets the provisions of the Pension Fund Law Number 11 of 1992 and all its implementing regulations.

2. Conflicts of Interest
   a. The Board of Directors, Board of Supervisors, and Employees of the Pension Fund, in carrying out their tasks and obligations, must not have interests outside the interests of the Pension Fund, whether directly or indirectly, including personal, family, group, or other party interests, which result in the loss of objectivity in decision-making. b. The Board of Directors, Board of Supervisors, and Employees of the Pension Fund are obligated to maintain the confidentiality of information and confidential information of the Pension Fund in accordance with applicable legislation.
   c. The Board of Directors, Board of Supervisors, and Employees of the Pension Fund are prohibited from abusing their position for personal, family, group, or other parties' benefit.
   d. The Board of Directors, Board of Supervisors, and Employees of the Pension Fund are prohibited from abusing important information related to the Pension Fund.

3. Industrial Relations
   a. The Board of Directors, Board of Supervisors, and Employees of the Pension Fund are obligated to follow applicable legislation and procedures. b. The Pension Fund is required to use work capability, quality, and criteria related to labor relations as the sole basis for making decisions regarding labor relations between the Pension Fund and Employees without discrimination.
   c. The Pension Fund provides protection to whistleblowers and their families regarding reports of violations of applicable regulations and abuse of position.
   d. The Pension Fund records assets and liabilities correctly and accurately.

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  CHAPTER III
  FOUNDERS, CO-FOUNDERS, BOARD OF DIRECTORS, AND BOARD OF SUPERVISORS OF PENSION FUNDS A. General Principles The Founders, Co-Founders, Board of Directors, and Board of Supervisors of the Pension Fund carry out their functions in accordance with applicable provisions based on the principle that each has independence in carrying out their tasks and responsibilities solely for the interests of the Pension Fund.

B. Founders and Co-Founders

1. Basic Principles
   The Founder is a person or entity that establishes an Employer Pension Fund. In the event there is more than one Employer, one Employer acts as the Founder and the others as Co-Founders. The role and rights of the Founder in the administration of the pension program must be clearly defined and well documented in the Pension Fund Regulations. A Co-Founder is an Employer that participates in an Employer Pension Fund, for the benefit of some or all of its employees. An Employer is a Founder or Co-Founder that employs Employees.

2. General Guidelines
   a. Obligations and Responsibilities of the Founder a. Paying the Founder's normal contributions. b. Paying additional contributions if a deficit occurs that is the Founder's obligation based on the Actuary's calculation for Pension Funds administering Defined Benefit Programs.
   c. Collecting Participant contributions and depositing them to the Pension Fund.
   d. Establishing Investment Directions and their amendments. e. Requesting Approval from the OJK whenever there are changes to the Pension Fund Regulations. f. Reporting every change in Investment Directions, Board of Directors, and Board of Supervisors to the OJK. g. Showing account books, documents, and providing necessary explanations in the context of direct examination by the OJK. h. Terminating the membership of Co-Founder employees if the membership period of Co-Founder employees has ended and the Co-Founder still fails to pay contributions.

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  b. Obligations and Responsibilities of Co-Founders a. Stating their willingness to submit to the Pension Fund Regulations established by the Founder for the benefit of Co-Founder employees. b. Stating their willingness to finance the administration of the Pension Fund.
  c. Being responsible for normal contributions and additional contributions (in the event of a deficit) to be deposited into the Pension Fund in accordance with the amount and time established in the Pension Fund Regulations or Actuarial Statement.
  d. Stating their willingness to submit to the Pension Fund Regulations established by the Founder for the benefit of Co-Founder employees. e. Paying contributions. f. Collecting Co-Founder Participant contributions. g. Depositing all Participant contributions and their own contributions no later than the 15th of the following month.

c. Authority of the Founder
a. Appointing and dismissing the Board of Directors and Board of Supervisors. b. Appointing a Custodian.
c. Accepting Co-Founders.
d. Establishing, amending, and improving Pension Fund Regulations in accordance with the Pension Fund Law Number 11 of 1992 and its implementing regulations. e. Establishing salaries and other income for the Board of Directors and Board of Supervisors. f. Approving the Pension Fund's Work Plan and Budget. g. Giving approval for the assessment of direct investment placement in shares based on the equity method on values established by an Independent Appraiser. h. Approving the accountability of the Board of Directors and Board of Supervisors in the implementation of their tasks and authorities.

C. Pension Fund Board of Directors
Basic Principles
The Board of Directors is a person or business entity responsible for the administration of a pension program.
The Board of Directors has the obligation to always act in good faith and for the interest of all Participants and Beneficiaries of the Pension Program. The main task of the Board of Directors is to maintain and ensure that the main purpose of the pension program, namely as a safe source of income for retirees, can be achieved. To achieve the main task of the Board of Directors, the following are regulated:
a. The Board of Directors in the decision-making process is carried out effectively, accurately, and quickly, and independently.

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  b. The Board of Directors must be trustworthy and have experience in managing Human Resources and/or Finance fields, as well as the necessary skills to carry out their tasks.
  c. The Board of Directors is responsible for the management of the Pension Fund and accounts to the Founder, for example, in the Annual Performance Meeting.

General Guidelines

1. Number of Board Members
   The number of Board Members is adjusted to the complexity of the Pension Fund while still considering effectiveness in decision-making.

2. Appointment and Dismissal of Board Members
   Board Members are selected, appointed, and dismissed by the Founder.

3. Competence and Integrity of Board Members
   a. Board Members in carrying out their functions must meet competence and integrity requirements. b. Board Members are prohibited from utilizing the Pension Fund for personal, family, group, or other parties' interests.
   c. Board Members are obligated to comply with applicable legislation and other implementing regulations.

4. Board Functions
   a. Managing the Pension Fund by prioritizing the interests of Participants and Parties Entitled to Pension Benefits. b. Maintaining books, records, and documents necessary for Pension Fund management.
   c. Acting diligently, skillfully, wisely, and carefully in carrying out their responsibilities in managing the Pension Fund. In this regard, one of the Board Members can function as the Compliance Director.
   d. Keeping confidential personal information concerning each Participant. e. The Founder is prohibited from intervening in the Board's management, except as regulated in the Pension Fund legislation. f. Submitting periodic reports to the OJK according to the type, form, composition, and time established by the OJK. g. Submitting Investment Reports and Financial Reports sequentially as Monthly, Semi-Annual, and Annual Financial Reports to the Founder and Board of Supervisors. h. Announcing to Participants:
   i. Balance Sheet and Profit/Loss Calculation no later than June of the following year.
   ii. Summary of Semi-Annual Investment Reports signed by the Board of Directors no later than three months after the end of the semester.
   iii. Summary of Annual Investment Reports audited by a Public Accounting Firm no later than six months after the end of the fiscal year.

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  iv. Report on the Board of Supervisors' Evaluation Results regarding the Pension Fund's Investment Performance, which has been audited.
  v. Matters arising in the context of membership in the form and time established by the OJK.
  vi. Every change to the Pension Fund Regulations.
  i. Formulating procedures for Participants to convey opinions and suggestions regarding the development of the investment portfolio and its results to the Founder, Board of Supervisors, and Board of Directors.
  j. Submitting a report to the OJK if the Founder is unable to pay contributions for three consecutive months. k. Managing the investment of Pension Fund assets in accordance with Investment Directions.
  l. Securing Pension Fund assets.
  m. Taking legal action on behalf of and for the Pension Fund. n. Representing the Pension Fund inside and outside of court. o. Showing account books, documents, and providing necessary explanations in the context of direct examination by the OJK.

5. Internal Supervision Function
   a. The Board of Directors guarantees the implementation of the internal supervision function as an important part of the Pension Fund's Internal Control. b. In the event the Pension Fund has an Internal Supervision Unit, the head of that unit reports directly to the President Director/Chairman of the Board of Directors and has a functional relationship with the Audit Committee.
   c. The holder of the internal supervision function is tasked with facilitating the smooth execution of audits by external auditors.

6. Pension Fund Secretary Function
   a. The Pension Fund Secretary function is closely related to the smooth implementation of communication between the Pension Fund and relevant parties. b. The Pension Fund Secretary function also includes providing information that can be accessed by relevant parties according to their needs.
   c. The Pension Fund Secretary is responsible to the President Director.

7. Accountability of the Board of Directors
   The Board of Directors is accountable to the Founder for:
   a. Implementation of the Pension Fund Regulations and all Pension Fund management activities. b. Implementation of Good Pension Fund Governance practices by the Board of Directors and Pension Fund Employees.
   c. The Pension Fund's compliance with applicable regulations and legislation.
   d. The quality of the Pension Fund's services to Active Participants, Inactive Participants, and Retirees. e. Implementation of the Pension Fund's Risk Management.

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  D. Board of Supervisors
  Basic Principles
  A body tasked with supervising the administration of the pension program and ensuring that the administration runs well, in accordance with applicable provisions and for the interest of Participants. To achieve supervision objectives, the following are regulated:

1. The composition of the Board of Supervisors must be such that it meets the representation of Founder/Employer elements, Active Participants, and Retirees.
2. The Board of Supervisors must be trustworthy and have experience in management in the field of Human Resources and/or Finance, as well as the necessary skills to carry out their tasks.
3. The Board of Supervisors is obligated to supervise the management of the Pension Fund by examining all types of periodic reports.

General Guidelines

1. Composition and Number of Board of Supervisors Members
   a. The Board of Supervisors consists of Employer/Founder Representatives, Participant Representatives, and Retirees. b. The Board of Supervisors is selected, appointed, and dismissed by the Founder.
   c. The number of Board of Supervisors members is adjusted to the complexity of the Pension Fund while still considering effectiveness in decision-making.

2. Competence and Integrity of the Board of Supervisors
   a. The Board of Supervisors has competence and integrity appropriate to the needs of the Pension Fund. b. The Board of Supervisors is prohibited from utilizing the Pension Fund for personal, family, group, or other parties' interests.
   c. The Board of Supervisors is obligated to comply with applicable legislation and other implementing regulations.

3. Supervision Functions of the Board of Supervisors
   a. Appointing Public Accountants and Actuaries. b. Approving the Annual Investment Plan.
   c. Establishing Investment Directions together with the Founder.
   d. Supervising the implementation of the Work Plan and Budget. e. Supervising the implementation of the Annual Investment Plan and Investment Directions and evaluating investment performance. f. Following the development of activities and the condition of the Pension Fund. g. Providing an Annual Report of supervision results regarding the management of the Pension Fund by the Board of Directors to the Founder. h. Announcing to Participants a copy of the Annual Report of the Board of Supervisors' Supervision Results regarding the management of the Pension Fund by the Board of Directors.

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  i. Conducting monitoring to ensure that Good Pension Fund Governance is implemented as best as possible within the Pension Fund environment.
  j. Approving the selection of the valuation basis for direct investment placement in shares based on the equity method on values established by an Independent Appraiser.

4. Support Committees/Functions of the Board of Supervisors
   a. Audit Committee/Function
   The Audit Committee/Function serves as a facilitator for the Board of Supervisors to ensure that the Pension Fund's Internal Control structure has been implemented well, that internal and external audits have been carried out in accordance with applicable auditing standards, and that follow-up on audit findings is carried out by Management. The Audit Committee consists of one of the Board of Supervisors members, but if necessary, can also appoint members from outside the Pension Fund who have competence in accounting and finance. In the event an Audit Committee is not formed, its function is carried out by the Board of Supervisors.

b. Nomination and Remuneration Committee/Function The Nomination and Remuneration Committee/Function serves as a facilitator for the Board of Supervisors in assisting the Founder in establishing criteria and selecting candidates for the Board of Supervisors and Board of Directors, as well as the remuneration system. The Nomination and Remuneration Committee consists of one of the Board of Supervisors members, but if necessary, can also appoint members from outside the Pension Fund who have competence. In the event a Nomination and Remuneration Committee is not formed, its function is carried out by the Board of Supervisors.

c. Risk Policy Committee/Function
The Risk Policy Committee/Function serves as a facilitator for the Board of Supervisors in reviewing the Risk Management System prepared by the Board of Directors and assessing the risk tolerance that can be accepted by the Pension Fund. The Risk Policy Committee consists of one of the Board of Supervisors members, but if necessary, can also appoint members from outside the Pension Fund who have competence. In the event a Risk Policy Committee is not formed, its function is carried out by the Board of Supervisors.

d. GPFG Policy Committee/Function
The GPFG Policy Committee/Function serves as a facilitator for the Board of Supervisors in reviewing the GPFG system policy comprehensively prepared by the Board of Directors and assessing the consistency of implementation related to the ethics of managing the Pension Fund. The GPFG Policy Committee consists of one of the Board of Supervisors members, but if necessary, can also appoint members from outside the Pension Fund who have competence. In the event a GPFG Policy Committee is not formed, its function is carried out by the Board of Supervisors.

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  E. Relationship Pattern between Founder, Board of Directors, and Board of Supervisors Basic Principles The working relationship between the Founder, Board of Directors, and Board of Supervisors is a check and balance relationship with the ultimate goal of advancing and maintaining the health of the Pension Fund.

1. The Founder, Board of Directors, and Board of Supervisors, according to their respective functions, have the responsibility to maintain the continuity of the Pension Fund's business.
2. The Board of Directors formulates the vision, mission, and strategy of the Pension Fund by considering input from the Board of Supervisors and the Founder.
3. The Founder is prohibited from intervening in the Board's management, except for interventions permitted by Law, Government Regulations, OJK Regulations, and Pension Fund Regulations.

General Guidelines

1. The Board of Directors and Board of Supervisors, according to their respective functions, to maintain the continuity of the Pension Fund, are obligated to carry out among others:
   a. Internal control and risk management functions. b. Achieving optimal returns for the Pension Fund.
   c. Fair protection of the interests of the Founder and Participants.
   d. Leadership succession and management continuity. e. GPFG properly and correctly.

2. The Board of Directors and Board of Supervisors, in accordance with the established vision, mission, and strategy, agree on:
   a. Long-term plans, work plans, and annual budgets. b. Policies in making decisions are carried out objectively, free from pressure and free from all forms of conflict of interest.
   c. Fair and non-discriminatory Pension Fund valuation policies and methods.
   d. An organizational structure capable of supporting the achievement of the Pension Fund's goals.

3. In accordance with applicable legislation and other implementing regulations, the Founder is prohibited from intervening in Pension Fund management activities, meaning that the Board of Directors must act independently in managing its activities.

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  CHAPTER IV
  RELATIONSHIP WITH BUSINESS PARTNERS, EMPLOYEES, AND PARTICIPANTS

Basic Principles
The relationship between the Pension Fund with business partners (Banks, Securities, Investment Managers, Actuaries, Public Accountants, etc.) and employees is built on the principles of equality and fairness based on regulations applicable to each party, including:

1. The Pension Fund and business partners cooperate for the benefit of both parties based on the principle of mutual benefit.
2. The Pension Fund ensures non-discrimination to create fair and honest treatment, encouraging employees to develop their careers according to their potential, abilities, experience, and skills.
3. The Pension Fund provides relevant information to each Participant regarding their membership, opinions, and suggestions in the management of the Pension Fund.

General Guidelines

1. Cooperation with Business Partners
   a. The Pension Fund has regulations governing the business relationship with Business Partners. b. The Pension Fund and Business Partners have the right to obtain relevant information according to their respective needs so that decisions can be made that are accountable.
   c. The Pension Fund and Business Partners are obligated to keep information confidential and protect the interests of each party.

2. Treatment of Employees
   a. The Pension Fund must have personnel regulations governing employee obligations and rights. b. The Pension Fund creates a conducive work environment to encourage every employee to work creatively and productively.
   c. The Pension Fund provides transparent information to employees.
   d. The Pension Fund regulates every employee to uphold high ethical standards and the Pension Fund's values, and to comply with applicable internal policies, regulations, and procedures.

3. Treatment of Participants
   a. The Pension Fund must have regulations governing the submission of suggestions and opinions from participants. b. The Pension Fund provides relevant information regarding their membership.

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  CHAPTER V
  GUIDELINES FOR IMPLEMENTING GPFG

Basic Principles
The implementation of GPFG (Good Pension Fund Governance) is carried out systematically and continuously; therefore, it is supported by implementation guidelines that can serve as a reference for Pension Funds in implementing GPFG.

Implementation Guidelines

1. To implement GPFG, the formulation of various policies is required, including:
   a. Vision, Mission, and Values of the Pension Fund. b. Policies governing the implementation of functions by parties related to the Pension Fund.
   c. Ethics in managing the Pension Fund.
   d. Social Control Mechanisms for Participants.

2. To ensure GPFG can be implemented, it is recommended to go through stages including:
   a. Building concern and commitment from the Pension Fund's management, exemplified by the Founder, Board of Trustees, and Board of Supervisors. b. Conducting an assessment of the Pension Fund's condition related to GPFG.
   c. Formulating a GPFG implementation program.
   d. Internalizing the GPFG implementation program so that a sense of ownership is built among all elements of the Pension Fund. e. Conducting self-assessment and audit to ensure the continuous implementation of GPFG policies.

3. There are 16 implementation guidelines we have formulated for the systematic and continuous implementation of GPFG. These guidelines are:

A. Internal Control Guidelines
INTERNAL CONTROL SYSTEM GUIDELINES (01)

Purpose and Objective: Internal control system or management control is a system adopted or implemented in a work unit/organization and designed in a coordinated manner, covering organizational structure, policies, procedures, and methods. Its objectives are:
a. To safeguard assets. b. To produce accurate, timely, and accountable financial reports, investment reports, and management reports.
c. To utilize resources and facilities efficiently and effectively.
d. To encourage the improvement of responsibility implementation, risk culture, and an adequate and efficient early warning system.

Reference Basis:

• Vision and Mission of the Pension Fund.
• Pension Fund Regulations.
• Law on Pension Funds.
• Other Written Pension Fund Regulations.
• Founder's Policy on Pension Funds.
• Governance Guidelines of each Pension Fund.

Scope:

• Introduction.
• Purpose and Objective of the Internal Control System.
• Parties involved.
• Internal Control Environment and Elements.
• Board of Trustees' Responsibility in Internal Control.
• Risk Identification and Assessment.
• Control Activities and Segregation of Functions.
• Accounting Information and Communication System.
• Monitoring and Follow-up.

Related Parties:

• Board of Trustees, Board of Supervisors, and Founder.
• Internal Supervisory Unit (SPI).
• Employees.
• Participants.
• External parties.

Output:

• Standard Internal Control System Guideline Book.

• Internal control system that must be regularly reviewed for effectiveness according to technological developments and legislation.

• Guideline Book regarding delegation of authority.

• Deviation Reports (if any), along with corrective actions, sanctions imposed, proposed improvements, and monitoring of follow-up actions.

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B. Behavior and Code of Ethics Guidelines
BEHAVIOR AND CODE OF ETHICS GUIDELINES (02)

Purpose and Objective: The main purpose of formulating the code of ethics guideline book is: as a guide for behavior in decision-making, especially regarding business relationships, so that Pension Fund management is conducted professionally and responsibly.

The main objectives of formulating the code of ethics guideline book:

1. So that Pension Fund Governance principles can be applied consistently and responsibly by Pension Fund organizers in managing the Pension Fund.
2. To provide protection for the interests of Pension Fund organizers.
3. To create compliance and prudential principles in the functions and responsibilities of Pension Fund managers.

Reference Basis:

• Law on Pension Funds.
• Pension Fund Regulations.
• Values/Corporate Culture of each Pension Fund.
• Laws regarding Anti-Corruption and Criminal Acts.
• Healthy and customary Business Culture, Habits, and Norms.

Scope:

• Introduction.
• Purpose and Objective.
• General Policy on Code of Ethics Application.
• Scope of Code of Ethics Application.
• Policies governing relationships between Pension Fund stakeholders.
• Sanctions imposed if someone violates the code of ethics.
• Standards established as clauses in employment contracts and agreements with third parties.
• Reporting System, if deviations occur committed by the Board of Trustees and Employees of the Pension Fund.
• Compliance with Laws and regulations, and sanctions in case of violations.
• Prohibited transactions.

Related Parties:

• Pension Fund Organizers
• Participants
• Regulator
• Partners
• Other parties related to the Pension Fund

Output:

• Clarity and clear boundaries on what must be done and what must not be done.

• Organizer behavior that is appropriate/inappropriate with the Code of Ethics.

• Creation of a work atmosphere and environment that is honest, clean, and of high morality.

• Maintenance of compliance with law and prudential principles responsibly for all levels of the Pension Fund.

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C. Risk Management Guidelines
RISK MANAGEMENT GUIDELINES (03)

Purpose and Objective: The purpose of the Risk Management Guidelines is to have guidelines that serve as a reference for identifying, measuring, preventing, and handling risks in the Pension Fund environment, so that losses can be prevented as early as possible.

Reference Basis:

• Law on Pension Funds and its implementing regulations.
• Pension Fund Regulations.
• Pension Fund Investment Guidelines.
• Law on Money Laundering Crimes.
• Founder's Risk Management Guidelines.

Scope:

• Risk Identification.
• Changes in Internal and External Environmental Conditions.
• Types and Impact of Risks, including:
  • Investment Placement Risk.
  • Market or Environmental Risk.
  • Liquidity Risk.
  • Operational Risk.
  • Legal Risk.
  • Strategic Risk.
  • Compliance Risk.
  • Funding Risk.
• Risk Measurement and Assessment.
  • Parameter Setting.
  • Risk Weights.
  • Risk Levels.
• Risk Handling.
  • Risk Avoidance.
  • Risk Reduction.
  • Risk Sharing.
  • Risk Acceptance.

Related Parties: Founder, Board of Supervisors, Board of Trustees, Staff, Related parties.

Output:

• Risk Management Report.
• Follow-up Report (CAR= Corrective Action Report).

D. Funding Guidelines
FUNDING GUIDELINES (04)

Purpose and Objective: To provide an overview of the obligations that must be met by the Founder to fulfill Participant rights, through the process of fund collection and management.

Reference Basis:

• Law on Pension Funds and its implementing regulations.
• Pension Fund Regulations.
• Actuarial Report.

Reference:

• Financial Reports and Investment Portfolio.

Scope:

• Participant/Beneficiary Data.
• Asset Data.
• Actuarial Assumptions.
• Macroeconomic Conditions.

Related Parties:

• Founder.
• Founder's Partners.
• Board of Trustees.
• Board of Supervisors.
• Participants.
• Auditors.
• Independent Appraisers.

Output:

• Founder's Statement.

• Actuarial Obligations.

• Solvency Obligations.

• Normal Contributions.

• Additional Contributions.

• Fund Sufficiency Ratio.

• Actuarial Projections.

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E. Investment Guidelines
INVESTMENT GUIDELINES (05)

Purpose and Objective: To provide guidance in investment management so that managed funds yield optimal and relatively safe results in accordance with Pension Fund legislation and Investment Guidelines.

Reference Basis:

• Law on Pension Funds
• Government Regulations on Employer Pension Funds.
• OJK Regulations on Pension Fund Investments.
• Government Regulations on Income Tax on Interest from Deposits and Savings and Discount on Bank Indonesia Certificates.

Reference:

• Government Regulations on Income Tax Deduction in the form of Severance Pay, Pension Redemption Money, and Old Age Benefits or Old Age Security.
• Government Regulations on Income Tax on Interest and Discount on Bonds Traded on the Stock Exchange.
• Minister of Finance Decision on Specific Investment Fields Providing Income to Pension Funds that are Not Included as Objects of Income Tax.
• Minister of Finance Decision on Income Tax Deduction on
• Interest from Deposits and Savings and Discount on Bank Indonesia Certificates.
• Minister of Finance Decision on Income Tax Deduction Article 21 on Income in the form of Severance Pay, Pension Redemption Money, and Old Age Benefits, or Old Age Security.
• Minister of Finance Decision on Procedures for Income Tax Deduction on
• Interest from Deposits and Discount on Bonds Traded and/or Reported for Trading on the Stock Exchange.
• Tax Laws and Regulations related to Pension Fund Investments.
• Capital Market Law.

Scope:

• Introduction.

• Purpose and Objective.

• General Investment Policy.

• Pension Fund Asset Allocation.

• Investment Guidelines and Investment Plans.

• Investment Fund Allocation.

• Fields and Types of Investment.

• Targets, Investment Results.

• Investment Costs.

• Investment Risk Management.

• Investment Committee.

• Authority, Authorization, and Responsibility.

• Investment Decision-Making Process

• Attention and adjustment to market situations and developments.

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• Third-party Investment Management.

• Use of Experts and Consultants.

• Assessment of Partners in investment activities.

• Portfolio Management Process.

• Policies in each field and type of investment.

Related Parties:

• Auditors.
• Board of Trustees and Pension Fund Employees.
• Participants.
• Board of Supervisors.
• Founder.
• Partners (Custodians, Banks, Investment Managers, Securities Companies, Independent Appraisers, etc.).
• Regulator

Output:

• Investment Reports and supporting documents.
• Optimal investment returns.
• Propriety and compliance with Legislation.

F. Organization and Work Guidelines
ORGANIZATION AND WORK GUIDELINES (06)

Purpose and Objective: To provide an overview of the delegation of authority and division of tasks from each function in the organization clearly with attached supervision so that a conducive working condition is created.

Reference Basis:

• Law on Pension Funds and its implementing regulations.
• Pension Fund Regulations.
• Other General Policies of the Founder regarding Pension Funds.

Scope:

• Introduction.

• Purpose and Objective.

• General Policy on Organization and Management.

• Working relationships between Founder, Board of Trustees, Board of Supervisors, and Employees.

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• Pension Fund Organizational Structure.

• Job Descriptions.

• Authority, Authorization, and Responsibility.

Related Parties:

• Founder
• Board of Trustees
• Board of Supervisors
• Employees

Output: Clarity of the position of the Pension Fund management according to function, role, duties, rights and obligations, authority, and responsibility.

G. Budget Formulation Guidelines
BUDGET FORMULATION GUIDELINES (07)

Purpose and Objective: To provide an overview of the method of formulating the Annual Work Plan (RKA) as one of the work guidelines for the Pension Fund Board of Trustees for one year.

Reference Basis:

• Law on Pension Funds and its Implementing Regulations.
• Pension Fund Regulations.
• Investment Guidelines.

Scope:

• Introduction.

• Purpose and Objective.

• General Policy on Planning and Budgeting System.

• Work Plan.

• Investment Guidelines.

• Process of formulating and setting the work plan.

• Evaluation of previous performance.

• Participants

• Investment Funds

• Investment Results

• Operational Costs

• Business Results

• Net Assets

• Actuarial Obligations

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• Actuarial obligation difference

• Ratios

• Pension Benefits

• Normal Contributions

• Additional Contributions

• Basic Assumptions.

• Macroeconomic Conditions

• Average deposit interest rates

• Average bond interest rates

• Mutual fund growth rates

• Micro Conditions (Internal)

• Dividend participation

• Rental interest rates

• Government securities interest

• Promissory Note Interest

• Using previous reports

• Actuarial Interest Rates

• Normal contribution payment pattern, employer burden, and additional contributions

• PhDP (Pension Fund Health Index) increase assumptions

• Cost increase assumptions

• Work Program

• Budget Plan

• Evaluation and Monitoring of work plan and budget.

Related Parties:

• Board of Trustees
• Board of Supervisors
• Founder

Output: Approved Work Plan & Budget by the Founder

H. Accounting Guidelines
ACCOUNTING GUIDELINES (08)

Purpose and Objective: As an Accounting Guideline for the preparation of Financial Reports and Management Reports.

Reference Basis:

• Pension Fund Regulations.

Reference:

• Minister of Finance Decision on Pension Fund Financial Reports.
• OJK Regulations on Pension Fund Investments.
• Director General of Financial Institutions Decision on Guidelines for Preparing Pension Fund Financial Reports.
• PSAK (Indonesian Financial Accounting Standards) on Pension Funds.
• Other PSAK and healthy and customary practices.

Scope: General Policies, Account Codes and Explanations, Transaction Recording Process, Accounting Media, and Reporting System.

Related Parties: Board of Trustees, Employees, Board of Supervisors, Founder, Participants, Regulator, and Auditors.

Output: Financial Reports, Investment Reports, Management Reports, and other related reports.

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I. Participant Service Guidelines
PARTICIPANT SERVICE GUIDELINES (09)

Purpose and Objective: To optimize service to participants so that participant rights and obligations can be fulfilled.

Reference Basis:

• Law on Pension Funds.
• Government Regulations on Employer Pension Funds.
• Pension Fund Regulations.

Scope:

• Administration and Service Procedures.
• Membership including:
• Participants: Active, Retirees, Widows/Widowers, and Children
• Deferred Retirement
• Designated Parties
• Determination Letters
• Communication and socialization
• Submitting periodic financial reports to participants.
• Submitting Investment Portfolio developments and results.
• Submitting Annual Audited Financial Reports.
• Submitting information related to membership.

Related Parties:

• Regulator
• Board of Trustees
• Participants

Output: Participant Service Guidelines

J. Information System Guidelines
INFORMATION SYSTEM GUIDELINES (10)

Purpose and Objective: To assist Pension Fund management in processing data from internal and external sources into accurate and timely information.

Reference Basis:

• Law on Pension Funds.
• Government Regulations on Employer Pension Funds.
• Minister's Decision on Pension Fund Financial Reports.
• Minister of Finance Decision on Funding and Solvency of Employer Pension Funds.
• OJK Regulations on Pension Fund Investments.
• Director General of Financial Institutions Decision on Preparing Pension Fund Financial Reports.
• Tax Reports for Tax Reporting

Reference:

Scope:

• Membership Information System includes, among others:

• Active Participants

• Participant Contributions

• Employer Contributions

• Passive Participants

• Pension Benefit Payments

• Investment Information System includes, among others:

• Investment Placement

• Investment Disposal

• Financial and General Information System includes, among others:

• Operational Cost Payments

• Operational Cost Invoices

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Related Parties:

• Information System Auditors
• Board of Trustees and Pension Fund Employees
• Participants
• Board of Supervisors
• Founder
• Regulator

Output: Information needed according to requirements.

K. Guidelines for Sale/Disposal or Write-off of Problematic Investment Assets and Operational Assets.
GUIDELINES FOR SALE/DISPOSAL OR WRITE-OFF OF PROBLEMATIC INVESTMENT ASSETS AND OPERATIONAL ASSETS (11)

Purpose and Objective: To provide guidance in the disposal and write-off of problematic investment assets and operational assets to comply with applicable legislation.

Reference Basis:

• Law on Pension Funds and its implementing regulations.
• Pension Fund Regulations.
• Decisions by Competent Parties.
• Relevant PSAK.
• Founder's Guidelines.

Reference:

Scope:

• Background.
• Asset valuation, including by independent institutions.
• Submission of proposals to the Founder through the Board of Supervisors.
• Founder's Approval.
• Disposal/Sale or Write-off Process.

Related Parties:

• Founder.
• Board of Trustees.
• Board of Supervisors.
• Employees.
• Appraisers.
• Competent parties.

Output: Report on the results of sale/disposal or write-off of assets.

L. Tax Guidelines
TAX GUIDELINES (12)

Purpose and Objective: As a basic guideline for Pension Funds in acting as Taxpayers in carrying out their functions as calculators, collectors, depositors, and reporters of taxes correctly.

Reference Basis:

• Law on General Provisions and Tax Procedures.
• Law on Income Tax.
• Law on Value Added Tax on Goods and Services and Luxury Goods Sales Tax.
• Law on Tax on Acquisition of Rights over Land and Buildings.

Scope:

• PPh 21: includes PPh on retirees and Pension Fund employees, and others.

• PPh 23/26: includes PPh on investment placements, in the form of giro interest, deposits, savings, bonds, capital gains, stock transactions, stock dividends, participation dividends, SPU, rental income, service charges, other services.

• PPh 25/29: includes monthly payments for tax installments based on the previous year's calculation, final income, etc.

• PPN: includes transactions subject to PPN, among others; payment and receipt of remuneration for transactions subject to PPN.

• BPHTB: includes transactions for the purchase and sale of rights over land, buildings.

• Tax Exemption Certificate (SKB).

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• 31 -

Related Parties: Participants, Board of Trustees, Employees, Board of Supervisors, Founder, Tax Officer, External auditors.

Output: Orderly and correct implementation of tax rights and obligations.

M. Procurement of Goods and Services Guidelines PROCUREMENT OF GOODS & SERVICES GUIDELINES (13)

Purpose and Objective: As a guideline for determining partners in the procurement of goods and services.

Reference Basis:

• Internal Regulations of the Pension Fund Founder

Reference:

• Regulations issued by the Government.
• Internal Regulations of the Pension Fund Founder.
• Provisions from the Audit Board, for State-Owned Enterprise Pension Funds.
• Healthy practices in the procurement of goods and services.

Scope:

• Requirements and main duties of the user of goods/services.
• Formation, requirements, main duties, and membership.
• Procurement Committee/Officials.
• Requirements for suppliers of goods/services.
• Schedule for the implementation of goods/services procurement.
• Formulation of Own Estimated Price (HPS).
• Pre-qualification and post-qualification.
• Determination of procurement system.
• Goods/services procurement system.
• Contracting/other services.
• Consultancy services procurement system.
• Goods/services procurement contracts.
• Self-management transactions.

Related Parties:

• Regulator
• Board of Trustees
• Board of Supervisors
• Founder
• Procurement Committee
• Suppliers of goods/services

Output: Partners for the procurement of goods and services that meet the legislation established.

N. Decision-Making Guidelines
DECISION-MAKING GUIDELINES (14)

Purpose and Objective: The purpose of the Decision-Making Guidelines is to have decision-making procedures that are in accordance with good governance principles and can be held accountable.

Reference Basis:

• Law on Pension Funds and its implementing regulations
• Pension Fund Regulations
• Pension Fund Investment Guidelines
• Decision-Making Guidelines
• Founder

Reference:

Scope:

• Meeting schedule

• Method of Summoning Board of Trustees Meetings:

• Invitation with official written letters or with direct notification to Board of Trustees members.

• At least 1 (one) week before the meeting is held, except in urgent situations.

• The invitation must state the day/date, time, place of the meeting, and the meeting agenda.

• Supporting documents to be discussed in the meeting are attached to the meeting invitation.

• Meeting Chairperson

• Quorum

• Method of decision-making based on deliberation, majority vote, or circular (on paper).

• Meeting minutes stating the meeting decisions, differing opinions, and signing of the minutes.

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O. Pedoman Pelaporan
PEDOMAN PELAPORAN (15)

Maksud dan Tujuan: Sebagai pedoman dalam penyusunan dan penyampaian laporan keuangan, laporan investasi, dan laporan manajemen yang akurat, tepat waktu, dan dapat dipertanggungjawabkan.

Acuan Dasar:

• Undang-Undang tentang Dana Pensiun.
• Peraturan Dana Pensiun.
• Peraturan OJK tentang Laporan Keuangan Dana Pensiun.

Acuan Referensi:

• PSAK tentang Dana Pensiun.
• Keputusan Menteri Keuangan tentang Laporan Keuangan Dana Pensiun.
• Pedoman Akuntansi yang berlaku.

Ruang Lingkup:

• Pendahuluan.
• Maksud dan Tujuan.
• Kebijakan Umum Pelaporan.
• Jenis Laporan Keuangan.
• Jenis Laporan Investasi.
• Jenis Laporan Manajemen.
• Format dan Isi Laporan.
• Waktu Penyampaian Laporan.
• Proses Penyusunan Laporan.
• Review dan Persetujuan Laporan.

Pihak Terkait:

• Pengurus.
• Dewan Pengawas.
• Pendiri.
• Auditor.
• Regulator.
• Peserta.

Output:

• Laporan Keuangan yang akurat dan tepat waktu.
• Laporan Investasi yang komprehensif.
• Laporan Manajemen yang informatif.

P. Pedoman Penyelesaian Sengketa
PEDOMAN PENYELESAIAN SENGKETA (16)

Maksud dan Tujuan: Sebagai pedoman dalam menyelesaikan sengketa yang timbul antara Dana Pensiun dengan Peserta, Mitra Bisnis, atau pihak lainnya secara musyawarah untuk mufakat atau melalui jalur hukum.

Acuan Dasar:

• Undang-Undang tentang Dana Pensiun.
• Peraturan Dana Pensiun.
• Undang-Undang tentang Penyelesaian Sengketa.

Acuan Referensi:

• Peraturan Internal Dana Pensiun.
• Perjanjian Kerja.
• Kontrak dengan Mitra Bisnis.

Ruang Lingkup:

• Pendahuluan.
• Maksud dan Tujuan.
• Kebijakan Umum Penyelesaian Sengketa.
• Mekanisme Musyawarah.
• Mekanisme Mediasi.
• Mekanisme Arbitrase.
• Mekanisme Litigasi.
• Hak dan Kewajiban Pihak yang Bersengketa.

Pihak Terkait:

• Peserta.
• Pengurus.
• Dewan Pengawas.
• Mitra Bisnis.
• Pihak Ketiga.

Output:

• Penyelesaian sengketa yang adil dan transparan.

• Kepatuhan terhadap hukum dan peraturan yang berlaku.

• Terpeliharanya hubungan baik antar pihak.

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• 33 -

• 38 -

• 38 -
  DECISION GUIDELINES (14)
  Stakeholders:
  Regulator
  Board of Trustees
  Output:

• Strategic decisions

• Operational decisions

• Technical decisions

O. Archiving Guidelines
ARCHIVING GUIDELINES (15)
Purpose and Objective: To provide guidance in archiving management for smooth operations and the achievement of Pension Fund objectives. Reference Standards:

• National Archival System.

• Archival system of the Founding Company.
  Scope:

• Archival media.

• Paper media.

• Electronic Media: Magnetic disks, Tapes, and Computer hard disks, etc.

• Image Media: Micrographics and Optical disks.

• Types of archives.

• Active archives

• Vital archives

• Inactive archives

• Ancient archives

• Archival classification systems.

• Alphabetical

• Numerical/Numeric

• Geographical

• Subject-based

• Chronological

• Archival management procedures.

• Storage procedures.

• Retrieval procedures.

• Transfer procedures.

• Destruction procedures.

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• 39 -
  ARCHIVING GUIDELINES (15)

• Archival retention procedures.
  Stakeholders:

• Regulator,

• Board of Trustees

• Supervisory Board

• Employees,

• Participants

• Auditors.
  Output: Well-organized archives.

P. Correspondence Guidelines
CORRESPONDENCE GUIDELINES (16)
Purpose and Objective: As a guideline and reference in carrying out correspondence administration to assist the smooth execution of management tasks in providing, managing, maintaining, and securing written information, so that every decision can be taken quickly, accurately, efficiently, and effectively. Reference Standards: Common practices. Scope:

• Forms of Official Letters, consisting of:

• Internal Official Letters regulating correspondence between sections, from section to Board of Trustees, Board of Trustees to Board of Trustees, Board of Trustees to section.

• External Official Letters (incoming or outgoing letters), such as letters from the Board of Trustees to Regulator/Founding Company/Supervisory Board/Working Partners or vice versa.

• Media/Form

• Letters/Memos

• Fax

• Email

• Delivery Methods

• Post

• Courier

• Email

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• 40 -
  CORRESPONSE GUIDELINES (16)

• Handling of Official Letters.

• Structure of Official Letters; the structure of official letters must contain elements including:

• Letterhead.

• Place and Date.

• Letter Number, Subject, and Attachments.

• Addressed party.

• Body of the Letter and type/paper size/format according to the common practices of each Pension Fund.

• Sender identity adjusted to their authority.

• Signature authority according to regulations applicable in each Pension Fund.
  Stakeholders:

• Regulator

• Founding Company

• Supervisory Board

• Board of Trustees

• Staff

• Working Partners
  Output: Internal and External Letters.

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• 41 -
  CHAPTER VI
  STATEMENT OF COMPLIANCE WITH GPFG GUIDELINES
  Basic Principles
  The Board of Trustees in the Management Report and the Supervisory Board in the supervisory report make statements regarding the application of the GPFG guidelines in stages as referred to in Chapter I to Chapter III. Thus, the extent of the application of the GPFG in the Pension Fund can be assessed. General Guidelines

1. The Board of Trustees prepares periodic management reports containing financial reports, investments, GPFG application, and other reports.
2. The Supervisory Board prepares periodic supervisory reports regarding the performance evaluation of financial reports, investments, GPFG application by the Board of Trustees and Supervisory Board, and other reports.

Established in Jakarta on 23 February 2016
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY, ttd
MULIAMAN D. HADAD

Copy consistent with the original
Legal Director 1
Legal Department ttd
Yuliana