Financial Services Authority Regulation Number 17 of 2024 Concerning the Conduct of Bullion Business Activities

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 17 OF 2024
CONCERNING
THE CONDUCT OF BULLION BUSINESS ACTIVITIES
BY THE GRACE OF THE MOST HIGH GOD
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering: that in order to implement the provisions of Article 132 of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, it is necessary to establish a Financial Services Authority Regulation concerning the Conduct of Bullion Business Activities;

Recalling: 1. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
2. Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);

DECIDING:

To establish:
FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE CONDUCT OF BULLION BUSINESS ACTIVITIES.

CHAPTER I
GENERAL PROVISIONS

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

1. Bullion Business Activities are business activities related to gold conducted by financial service institutions.
2. Gold Savings are the storage of a certain amount of standardized gold entrusted by the public to a financial service institution conducting Bullion Business Activities based on an agreement between the parties.
3. Gold Financing is the provision of a certain amount of standardized gold based on an agreement or consensus between a financial service institution conducting Bullion Business Activities and other parties, which requires the financed party to return that amount of gold after a certain period with remuneration or profit-sharing.
4. Gold Trading is the buying and selling of standardized gold transactions implemented based on an agreement between the parties and is not intended for Gold Financing and/or gold custody activities.
5. Gold Custody is the custody of gold owned by the public by a financial service institution conducting Bullion Business Activities to obtain income based on service fees, implemented based on an agreement between the parties.
6. Gold is a noble metal in the form of bars or plates and not in the form of currency, with a minimum Aurum (Au) content of 99.9% (ninety-nine point nine percent).
7. Financial Service Institutions, hereinafter abbreviated as LJK, are institutions that conduct activities in the banking, capital market, insurance, pension fund, venture capital, microfinance institution, financing institution, and other financial service institution sectors.
8. Board of Directors is the organ of the LJK that has the authority and is fully responsible for the management of the LJK for the interests of the LJK, in accordance with the purpose and objectives of the LJK and represents the LJK, both inside and outside the court, in accordance with the articles of association for LJK in the form of a limited liability company, or equivalent to the Board of Directors for LJK in the form of a cooperative legal entity, regional public enterprise, or branch/representative office of a bank located outside the country.
9. Risk Management is a series of procedures and methodologies used to identify, measure, monitor, and control risks arising from all Bullion Business Activities.
10. Good Corporate Governance is the structure and process used and applied by the organ of the LJK conducting Bullion Business Activities to improve the achievement of business results and optimize the value of conducting Bullion Business Activities for all stakeholders in an accountable manner and based on legislation and ethical values.
11. Sharia Principles are Islamic legal principles based on fatwas and/or Sharia compliance statements issued by institutions having authority in determining fatwas in the field of Sharia.
12. Customers are every party using the services of the LJK conducting Bullion Business Activities through Gold Savings, Gold Financing, Gold Trading, Gold Custody, and other activities conducted by the LJK.

CHAPTER II
BUSINESS ACTIVITIES

First Section
General

Article 2
(1) Bullion Business Activities include:
a. Gold Savings; b. Gold Financing;
c. Gold Trading;
d. Gold Custody; and/or e. other activities conducted by the LJK.
(2) Bullion Business Activities as referred to in paragraph (1) may be conducted based on Sharia Principles.
(3) Bullion Business Activities conducted based on Sharia Principles as referred to in paragraph (2) must fulfill the following provisions:
a. fulfill the principles of justice ('adl), balance (tawazun), public interest (maslahah), and universalism (alamiyah); b. do not contain prohibited elements, namely riba, maisir, gharar, zalim, risywah, maksiat, and haram objects; and
c. are conducted using contracts in accordance with fatwas and/or Sharia compliance statements issued by institutions having authority in determining fatwas in the field of Sharia.

Article 3
LJKs conducting Bullion Business Activities must use:
a. Gold standards from the Indonesian National Standards issued by institutions having duties in organizing development and guidance in the field of standardization in accordance with legislation; and/or b. Gold standards applicable in accordance with international practice.

Second Section
Gold Savings

Article 4
The time period for Gold Savings activities as referred to in Article 2 paragraph (1) letter a is established based on an agreement between the Customer and the LJK conducting Bullion Business Activities.

Article 5
(1) Customer gold stored in the Gold Savings scheme as referred to in Article 4 is classified as an unallocated account.
(2) In the management of Gold Savings activities as referred to in Article 2 paragraph (1) letter a, the LJK conducting Bullion Business Activities may use gold stored by Customers as a source for the disbursement of Gold Financing and/or Gold Trading activities.

Article 6
LJKs conducting Bullion Business Activities must measure, recognize, and present Gold Savings management transactions based on financial accounting standards.

Third Section
Gold Financing

Article 7
In the disbursement of Gold Financing activities as referred to in Article 2 paragraph (1) letter b, the LJK conducting Bullion Business Activities may use gold originating from:
a. gold stored by Gold Savings Customers; and/or b. gold owned by the LJK conducting Bullion Business Activities.

Article 8
(1) The LJK conducting Bullion Business Activities must require collateral in the disbursement of Gold Financing.
(2) Collateral as referred to in paragraph (1) consists of:
a. cash or cash equivalents, time deposits, securities issued by the Government of the Republic of Indonesia, and/or securities issued by Bank Indonesia, for LJKs conducting Bullion Business Activities in the form of conventional commercial banks, Sharia commercial banks, and/or Sharia business units of conventional commercial banks; and b. cash or cash equivalents, time deposits, gold inventory, securities issued by the Government of the Republic of Indonesia, and/or securities issued by Bank Indonesia, for LJKs conducting Bullion Business Activities other than conventional commercial banks, Sharia commercial banks, and/or Sharia business units of conventional commercial banks. (3) The LJK conducting Bullion Business Activities must ensure that the value of collateral in the disbursement of Gold Financing is at least 100% (one hundred percent) of the value of the Gold Financing. (4) In the event of a decrease or increase in the price of gold, the LJK conducting Bullion Business Activities may request adjustment of collateral in the form of cash or cash equivalents.

Article 9
(1) The LJK conducting Bullion Business Activities must meet the minimum gold gramage limit for gold disbursed in Gold Financing activities.
(2) The minimum gold gramage limit as referred to in paragraph (1) is initially set at a minimum of 500 (five hundred) grams per transaction.
(3) The minimum gold gramage limit as referred to in paragraph (2) may be adjusted by considering industry developments, and the changes are established by the Financial Services Authority.

Article 10
The LJK conducting Bullion Business Activities must ensure that repayment from Customers obtaining Gold Financing facilities is in the form of gold.

Article 11
The LJK conducting Bullion Business Activities measures, recognizes, and presents Gold Financing transactions based on financial accounting standards.

Fourth Section
Gold Trading

Article 12
(1) The LJK conducting Bullion Business Activities must meet the minimum gold gramage limit for gold to be transacted in Gold Trading activities as referred to in Article 2 paragraph (1) letter c. (2) The gold gramage restriction provisions as referred to in paragraph (1) are excluded in the event that the gold traded will be used for Gold Savings activities, repayment of Gold Financing, and/or Gold Custody at the LJK conducting Bullion Business Activities in question. (3) The minimum gold gramage limit as referred to in paragraph (1) is initially set at a minimum of 500 (five hundred) grams per transaction. (4) The minimum gold gramage limit as referred to in paragraph (3) may be adjusted by considering industry developments, and the changes are established by the Financial Services Authority.

Article 13
(1) The conduct of Gold Trading activities must be carried out physically by the LJK conducting Bullion Business Activities.
(2) In Gold Trading activities, the LJK conducting Bullion Business Activities may use gold originating from:
a. gold stored by Gold Savings Customers; and/or b. gold owned by the LJK conducting Bullion Business Activities.

Fifth Section
Gold Custody

Article 14
(1) The LJK conducting Bullion Business Activities must:
a. store gold deposited by Customers; b. return deposited gold in accordance with the condition at the time of deposit; and
c. fulfill other obligations,
according to the agreement in Gold Custody activities as referred to in Article 2 paragraph (1) letter d.
(2) Customer gold deposited in the Gold Custody scheme as referred to in paragraph (1) is classified as an allocated account.

Article 15
The LJK conducting Bullion Business Activities must record Gold Custody activities separately in the accounting books.

Article 16
In the event that the LJK conducting Bullion Business Activities is declared bankrupt based on a court decision that has acquired permanent legal force, then:
a. gold deposited by Customers is not included in the bankruptcy estate recording; and b. the LJK conducting Bullion Business Activities must return the amount of gold deposited to the Customers.

Article 17
The LJK conducting Bullion Business Activities is prohibited from using gold deposited by Customers as gold used in Gold Financing and/or Gold Trading activities.

Sixth Section
Other Activities Conducted by LJKs

Article 18
(1) Other activities conducted by the LJK as referred to in Article 2 paragraph (1) letter e are activities to support Bullion Business Activities.
(2) To be able to carry out other activities as referred to in paragraph (1), the LJK conducting Bullion Business Activities must fulfill the following requirements:
a. the plan to carry out other activities has been included in the business plan of the LJK conducting Bullion Business Activities; and b. it has a health level with a composite rating of minimum 2 (two) or healthy, based on the results of the latest assessment period from the Financial Services Authority before the application submission. (3) In addition to fulfilling the requirements as referred to in paragraph (2), the LJK conducting Bullion Business Activities must fulfill requirements regarding other business activities or new products applicable to each LJK conducting Bullion Business Activities. (4) The LJK conducting Bullion Business Activities that will carry out other activities as referred to in paragraph (2) must obtain permission from the Financial Services Authority. (5) To obtain permission as referred to in paragraph (4), the LJK conducting Bullion Business Activities that will carry out other activities must submit an application to the Financial Services Authority by attaching documents containing descriptions at least regarding:
a. the scheme or mechanism of other activities to be carried out; b. the application of prudential principles and risk mitigation;
c. business prospect analysis;
d. rights and obligations of the parties; and e. draft agreements to be used.
(6) The Financial Services Authority grants permission or rejection for the application as referred to in paragraph (5).
(7) In granting permission or rejection as referred to in paragraph (6), the Financial Services Authority conducts:
a. analysis of the completeness of documents as referred to in paragraph (5); b. analysis of the fulfillment of provisions in this Financial Services Authority Regulation as well as the fulfillment of provisions in other related legislation in the financial services sector; and
c. feasibility analysis of the plan to carry out other activities.
(8) In the event that the application for permission to carry out other activities as referred to in paragraph (5) is approved, the Financial Services Authority grants permission to the LJK conducting Bullion Business Activities. (9) In the event that the Financial Services Authority rejects the application for permission to carry out other activities as referred to in paragraph (5), the Financial Services Authority submits a written rejection accompanied by the reasons for rejection. (10) The mechanism for applying for permission for other activities as referred to in paragraph (2) is implemented in accordance with provisions regarding applications for permission for other activities for relevant sectoral LJKs.

Seventh Section
Bullion Business Activities Through Electronic Systems

Article 19
(1) The LJK conducting Bullion Business Activities that conducts IT-based Bullion Business Activities must ensure:
a. the reliability and security of the electronic system used, including cyber resilience; and b. the physical availability of gold traded.
(2) The LJK conducting Bullion Business Activities that conducts IT-based Bullion Business Activities as referred to in paragraph (1) must fulfill the aspects of IT Risk Management by referring to the Financial Services Authority Regulation concerning the conduct of IT by commercial banks and/or the Financial Services Authority Regulation concerning the application of risk management in the use of IT by non-bank financial service institutions.

Eighth Section
Administrative Sanctions

Article 20
(1) Violations of the provisions as referred to in Article 2 paragraph (3), Article 3, Article 6, Article 8 paragraph (1), paragraph (3), Article 9 paragraph (1), Article 10, Article 12 paragraph (1), Article 13 paragraph (1), Article 14 paragraph (1), Article 15, Article 16 letter b, Article 17, Article 18 paragraph (4), and/or Article 19 are subject to administrative sanctions in the form of:
a. written warning or reprimand; b. suspension of certain business activities;
c. restriction of certain business activities;
d. downgrade of health level; e. cancellation of approval; f. prohibition on issuing new products; g. prohibition on expanding business activities; h. prohibition on conducting new business activities;
i. prohibition as a main party in accordance with the Financial Services Authority Regulation concerning re-evaluation for main parties of financial service institutions;
j. administrative fines; and/or k. revocation of the Bullion Business Activity license.
(2) Administrative sanctions as referred to in paragraph (1) letters b through j may be imposed with or without prior imposition of administrative sanctions in the form of written warning or reprimand as referred to in paragraph (1) letter a. (3) Administrative fines as referred to in paragraph (1) letter j are imposed in the amount of IDR 100,000,000.00 (one hundred million rupiah). (4) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. conduct re-evaluation of main parties causing the LJK conducting Bullion Business Activities to violate provisions as referred to in paragraph (1); and/or b. record the track record of parties causing the LJK conducting Bullion Business Activities to violate provisions as referred to in paragraph (1) in the Financial Services Authority electronic system.

CHAPTER III
REQUIREMENTS FOR FINANCIAL SERVICE INSTITUTIONS CONDUCTING BULLION BUSINESS ACTIVITIES

First Section
Criteria for Financial Service Institutions

Article 21
(1) The conduct of Bullion Business Activities may only be conducted by LJKs with main business activities in the form of credit or financing disbursement other than people's economy banks, Sharia people's economy banks, and microfinance institutions. (2) To be able to conduct Bullion Business Activities, the LJK as referred to in paragraph (1) must have a minimum health level assessment of composite rating 2 (two) or healthy, in accordance with regulations governing health level assessments for LJKs submitting applications. (3) Health level assessments as referred to in paragraph (2) are based on the results of the latest assessment period from the Financial Services Authority before the application submission.

Second Section
Capital at the Time of License Application

Article 22
(1) LJKs conducting Bullion Business Activities must fulfill capital requirements:
a. for commercial banks, must have core capital of at least IDR 14,000,000,000,000.00 (fourteen trillion rupiah); b. for Sharia business units of conventional commercial banks, conventional commercial banks having Sharia business units must have core capital of at least IDR 14,000,000,000,000.00 (fourteen trillion rupiah); and
c. for LJKs other than conventional commercial banks, Sharia commercial banks, and/or Sharia business units of conventional commercial banks, must have equity of at least IDR 14,000,000,000,000.00 (fourteen trillion rupiah).
(2) LJKs conducting Bullion Business Activities that only conduct Gold Custody activities are exempted from the core capital or equity obligation of IDR 14,000,000,000,000.00 (fourteen trillion rupiah). (3) LJKs conducting Bullion Business Activities that only conduct Gold Custody activities as referred to in paragraph (2) must fulfill core capital or equity provisions in accordance with the core capital or equity provisions applicable to the LJK.

Third Section
Institutional and Management Structure

Article 23
(1) The LJK conducting Bullion Business Activities must have a special work unit that conducts Bullion Business Activities.
(2) The special work unit as referred to in paragraph (1) cannot be held concurrently with other work units.
(3) The LJK conducting Bullion Business Activities must ensure that the special work unit conducting Bullion Business Activities as referred to in paragraph (1) is led by an official who is directly responsible to the director responsible for the management of the Bullion Business Activity conductor.

Fourth Section
Administrative Sanctions

Article 24
(1) Violations of the provisions as referred to in Article 23 paragraph (1) and paragraph (3) are subject to administrative sanctions in the form of:
a. written warning or reprimand; b. suspension of certain business activities;
c. restriction of certain business activities;
d. downgrade of health level; e. cancellation of approval; f. prohibition on issuing new products; g. prohibition on expanding business activities; h. prohibition on conducting new business activities;
i. prohibition as a main party in accordance with the Financial Services Authority Regulation concerning re-evaluation for main parties of financial service institutions;
j. administrative fines; and/or k. revocation of the Bullion Business Activity license.
(2) Administrative sanctions as referred to in paragraph (1) letters b through j may be imposed with or without prior imposition of administrative sanctions in the form of written warning or reprimand as referred to in paragraph (1) letter a. (3) Administrative fines as referred to in paragraph (1) letter j are imposed in the amount of IDR 100,000,000.00 (one hundred million rupiah). (4) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. conduct re-evaluation of main parties causing the LJK conducting Bullion Business Activities to violate provisions as referred to in paragraph (1); and/or b. record the track record of parties causing the LJK conducting Bullion Business Activities to violate provisions as referred to in paragraph (1) in the Financial Services Authority electronic system.

CHAPTER IV
LICENSING OF BULLION BUSINESS ACTIVITIES

Article 25
(1) The LJK conducting Bullion Business Activities must obtain permission from the Financial Services Authority.
(2) To obtain permission as referred to in paragraph (1), the Board of Directors must submit an application to the Financial Services Authority by attaching documents at least:
a. data of the leader of the special work unit conducting Bullion Business Activities including:

1. photocopy of identification in the form of a resident identity card or passport for those with foreign nationality;

2. photocopy of tax identification number or equivalent document for those with foreign nationality;

3. curriculum vitae completed with the latest 4 x 6 cm color photo;

4. proof of appointment as the leader of the special work unit;

5. a statement letter stating:
   a) does not have non-performing loans/financing; b) has never been sentenced for committing criminal offenses based on a court decision that has acquired permanent legal force in the last 5 (five) years; and c) has never been declared bankrupt or declared guilty causing a legal entity to be declared bankrupt based on a court decision that has acquired permanent legal force in the last 5 (five) years; and

6. photocopy of Temporary Stay Permit Card, Permanent Stay Permit Card, and photocopy of work permit letter from competent authorities for leaders of special work units with foreign nationality;
   b. a business plan containing at least:

7. bullion business activity plan and steps taken to realize the aforementioned plan; and

8. cash flow projections, financial position projections, and annual profit/loss calculation projections starting from when the Bullion Business Activity Organizer LJK commences operational activities, accompanied by the assumptions used,
   for the first 3 (three) years;
   c. evidence of operational readiness for the Bullion Business Activity Organizer, at minimum consisting of:

9. organizational structure complete with descriptions of duties, authorities, responsibilities, and personnel;

10. work procedures;

11. draft agreements to be used; and

12. supporting infrastructure;
    d. evidence of risk management readiness for the Bullion Business Activity Organizer; and e. evidence regarding access to global market networks.
    (3) In addition to the documents as referred to in paragraph (2), the Bullion Business Activity Organizer LJK must fulfill sectoral regulation requirements applicable to each respective entity.

Article 26
(1) The Financial Services Authority (OJK) grants approval or rejection of the license application as referred to in Article 25.
(2) In granting approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 25 paragraph (2); b. examination of capital adequacy compliance;
c. feasibility analysis of the business plan as referred to in Article 25 paragraph (2) letter b; and
d. analysis of compliance with regulations in the field of LJK related thereto.
(3) The Financial Services Authority may conduct inspections at the LJK office to ensure operational readiness as a Bullion Business Activity Organizer.
(4) In the event the license application is approved, the Financial Services Authority grants the Bullion Business Activity License.
(5) In the event the license application is rejected, the rejection is conducted in writing and accompanied by the reasons for rejection.
(6) The mechanism for the license application as referred to in paragraph (1) is implemented in accordance with regulations concerning license applications for relevant sectoral LJK. https://jdih.ojk.go.id/

CHAPTER V
PHASED IMPLEMENTATION OF BULLION BUSINESS ACTIVITIES First Section General
Article 27
(1) The phased implementation of Bullion Business Activities includes:
a. first stage; b. second stage; and
c. third stage.
(2) For the first time, the Bullion Business Activity Organizer LJK is required to conduct Bullion Business Activities at the first stage.

Article 28
(1) The Bullion Business Activity Organizer LJK at the first stage as referred to in Article 27 paragraph (1) letter a is prohibited from conducting Bullion Business Activities except for the following activities:
a. Gold Savings Management; b. Gold Financing Disbursement;
c. Gold Trading; and/or
d. Gold Custody, with the provision that the use of Gold sourced from Gold Savings which is an unallocated account can only be disbursed as Gold Financing and Gold Trading at a maximum of 70% (seventy percent). (2) For Bullion Business Activity Organizer LJK that only conducts Gold Custody activities, during the first stage, they are prohibited from conducting Bullion Business Activities other than Gold Custody. (3) Bullion Business Activity Organizer LJK in the form of conventional commercial banks are prohibited from conducting Gold Trading activities at the first stage.

Article 29
The Bullion Business Activity Organizer LJK at the second stage as referred to in Article 27 paragraph (1) letter b is prohibited from conducting Bullion Business Activities except for the following activities:
a. Gold Savings Management; b. Gold Financing Disbursement;
c. Gold Trading; and/or
d. Gold Custody, with the provision that the use of Gold sourced from Gold Savings which is an unallocated account can only be disbursed as Gold Financing and Gold Trading at a maximum of 80% (eighty percent).

Article 30
(1) The Bullion Business Activity Organizer LJK at the third stage as referred to in Article 27 paragraph (1) https://jdih.ojk.go.id/

letter c is prohibited from conducting Bullion Business Activities except for the following activities:
a. Gold Savings Management; b. Gold Financing Disbursement;
c. Gold Trading;
d. Gold Custody; and/or e. other activities, with the provision that the use of Gold sourced from Gold Savings which is an unallocated account can only be disbursed as Gold Financing and Gold Trading at a maximum of 90% (ninety percent). (2) Requirements and mechanisms for applying for approval of other activities as referred to in paragraph (1) letter e refer to regulations as referred to in Article 18.

Article 31
(1) The Bullion Business Activity Organizer LJK intending to proceed to the second and/or third stage is required to:
a. conduct a self-assessment of the readiness of the Bullion Business Activity Organizer LJK to proceed to the second and/or third stage, which at minimum covers capital adequacy, liquidity adequacy, and Risk Management; b. include plans to proceed to the next stage in the business plan; and
c. obtain approval from the Financial Services Authority.
(2) Self-assessment of capital adequacy, liquidity adequacy, and Risk Management is implemented in accordance with the respective regulations for each Bullion Business Activity Organizer LJK. (3) The phased implementation of Bullion Business Activities as referred to in Article 27 paragraph (1) must be conducted sequentially.

Article 32
(1) To obtain approval from the Financial Services Authority as referred to in Article 31 paragraph (1) letter c, the Bullion Business Activity Organizer LJK must submit an application to the Financial Services Authority attaching documents containing at minimum descriptions of:
a. report on the implementation of Bullion Business Activities at the previous stage; b. self-assessment report on the readiness of the Bullion Business Activity Organizer LJK to proceed to the next stage; and
c. plan for the implementation of Bullion Business Activities at the next stage.
(2) In the event of incomplete documents, the Financial Services Authority issues a request for document completeness. https://jdih.ojk.go.id/

(3) The Bullion Business Activity Organizer LJK submits the missing documents at the latest 20 (twenty) working days from the date of the document completeness request letter issued by the Financial Services Authority as referred to in paragraph (2). (4) If within the time period as referred to in paragraph (3) the Financial Services Authority has not received the complete documents, the prospective Bullion Business Activity Organizer LJK is deemed to have cancelled the application for approval to proceed to the second and/or third stage. (5) The Financial Services Authority grants approval or rejection of the application as referred to in paragraph (1) within a maximum time limit of 20 (twenty) working days from the date the complete application documents are received. (6) In granting approval or rejection as referred to in paragraph (2), the Financial Services Authority conducts:
a. analysis of document completeness as referred to in paragraph (1); b. analysis of compliance with provisions in this Financial Services Authority Regulation and other related regulations in the financial services sector; and
c. feasibility analysis of the plan for the implementation of Bullion Business Activities at the next stage.
(7) In the event the application for approval to proceed to the second and/or third stage as referred to in paragraph (1) is approved, the Financial Services Authority issues written approval to the Bullion Business Activity Organizer LJK. (8) In the event the Financial Services Authority rejects the application for approval to proceed to the second and/or third stage as referred to in paragraph (1), the Financial Services Authority issues written rejection accompanied by the reasons for rejection.

Second Section
Administrative Sanctions
Article 33
(1) Violations of the provisions as referred to in Article 27 paragraph (2), Article 28, Article 29, Article 30 paragraph (1), and/or Article 31 paragraph (1) and paragraph (3) are subject to administrative sanctions in the form of:
a. written warning or reprimand; b. suspension of certain business activities;
c. restriction of certain business activities;
d. downgrade of health status; e. revocation of approval; f. prohibition on issuing new products; g. prohibition on expanding business activities; h. prohibition on conducting new business activities; https://jdih.ojk.go.id/

i. prohibition as a principal party in accordance with Financial Services Authority Regulations regarding re-evaluation of principal parties of financial service institutions;
j. administrative fine; and/or k. revocation of the Bullion Business Activity License.
(2) Administrative sanctions as referred to in paragraph (1) letters b through j may be imposed with or without being preceded by the imposition of administrative sanctions in the form of written warning or reprimand as referred to in paragraph (1) letter a. (3) Administrative fine sanctions as referred to in paragraph (1) letter j are imposed at an amount of Rp100,000,000.00 (one hundred million rupiah). (4) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. conduct a re-evaluation of the principal party that caused the Bullion Business Activity Organizer LJK to violate the provisions as referred to in paragraph (1); and/or b. record the track record of the party that caused the Bullion Business Activity Organizer LJK to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER VI
APPLICATION OF PRUDENTIAL PRINCIPLES
First Section
General
Article 34
The Bullion Business Activity Organizer LJK is required to apply prudential principles in conducting Bullion Business Activities.

Article 35
(1) The application of prudential principles as referred to in Article 34 is implemented in accordance with regulations concerning prudential principles for relevant sectoral LJK. (2) Regulations concerning the application of prudential principles for Bullion Business Activities in the financing institution sector, venture capital companies, and other financial service institutions are established by the Financial Services Authority.

Second Section
Administrative Sanctions
Article 36
(1) Violations of the provisions as referred to in Article 34 are subject to administrative sanctions in the form of:
a. written warning or reprimand; b. suspension of certain business activities; https://jdih.ojk.go.id/

c. restriction of certain business activities;
d. downgrade of health status; e. revocation of approval; f. prohibition on issuing new products; g. prohibition on expanding business activities; h. prohibition on conducting new business activities;
i. prohibition as a principal party in accordance with Financial Services Authority Regulations regarding re-evaluation of principal parties of financial service institutions;
j. administrative fine; and/or k. revocation of the Bullion Business Activity License.
(2) Administrative sanctions as referred to in paragraph (1) letters b through j may be imposed with or without being preceded by the imposition of administrative sanctions in the form of written warning or reprimand as referred to in paragraph (1) letter a. (3) Administrative fine sanctions as referred to in paragraph (1) letter j are imposed at an amount of Rp100,000,000.00 (one hundred million rupiah). (4) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. conduct a re-evaluation of the principal party that caused the Bullion Business Activity Organizer LJK to violate the provisions as referred to in paragraph (1); and/or b. record the track record of the party that caused the Bullion Business Activity Organizer LJK to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER VII
GOOD CORPORATE GOVERNANCE AND RISK MANAGEMENT
First Section
Application of Good Corporate Governance
Article 37
(1) The Bullion Business Activity Organizer LJK applies Good Corporate Governance in conducting Bullion Business Activities.
(2) The application of Good Corporate Governance is conducted in accordance with Financial Services Authority Regulations concerning the application of good corporate governance for relevant sectoral LJK.

Second Section
Application of Risk Management
Article 38
(1) The Bullion Business Activity Organizer LJK applies Risk Management in conducting Bullion Business Activities. https://jdih.ojk.go.id/

(2) The application of Risk Management is conducted in accordance with Financial Services Authority Regulations concerning the application of Risk Management for relevant sectoral LJK.

CHAPTER VIII
APPLICATION OF ANTI-MONEY LAUNDERING PROGRAMS, TERRORISM FINANCING PREVENTION, AND WEAPONS OF MASS DESTRUCTION PROLIFERATION FINANCING PREVENTION, APPLICATION OF ANTI-FRAUD STRATEGIES, AND CONSUMER PROTECTION First Section Application of Anti-Money Laundering Programs, Terrorism Financing Prevention, and Weapons of Mass Destruction Proliferation Financing Prevention
Article 39
(1) The Bullion Business Activity Organizer LJK applies anti-money laundering programs, terrorism financing prevention, and weapons of mass destruction proliferation financing prevention in conducting Bullion Business Activities. (2) The application of anti-money laundering programs, terrorism financing prevention, and weapons of mass destruction proliferation financing prevention in the management of Bullion Business Activities is conducted in accordance with Financial Services Authority Regulations concerning the application of anti-money laundering programs, terrorism financing prevention, and weapons of mass destruction proliferation financing prevention in the financial services sector.

Second Section
Application of Anti-Fraud Strategies
Article 40
(1) The Bullion Business Activity Organizer LJK applies anti-fraud strategies in conducting Bullion Business Activities.
(2) The application of anti-fraud strategies in the management of Bullion Business Activities is conducted in accordance with Financial Services Authority Regulations concerning the application of anti-fraud strategies for financial service institutions.

Third Section
Consumer Protection
Article 41
(1) The Bullion Business Activity Organizer LJK applies consumer protection in conducting Bullion Business Activities. https://jdih.ojk.go.id/

(2) The mechanism and procedures for applying consumer protection principles as referred to in paragraph (1) are implemented in accordance with regulations concerning consumer and community protection in the financial services sector.

CHAPTER IX
REPORTING
First Section
Monthly Reports on the Management of Bullion Business Activities
Article 42
The Bullion Business Activity Organizer LJK is required to prepare monthly reports on the management of Bullion Business Activities.

Article 43
(1) The Bullion Business Activity Organizer LJK is required to submit monthly reports on the management of Bullion Business Activities as referred to in Article 42 to the Financial Services Authority at the latest by the 10th of the following month online through the Financial Services Authority's data communication network system. (2) The Bullion Business Activity Organizer LJK is required to be accountable that every document submitted online as referred to in paragraph (1) is a document that is true and consistent with the original document. (3) In the event the Financial Services Authority's data communication network system as referred to in paragraph (1) is not yet available, experiences technical disturbances, or force majeure occurs, the Bullion Business Activity Organizer LJK submits monthly reports on the management of Bullion Business Activities as referred to in paragraph (1) in the form of electronic documents online via email designated by the Financial Services Authority. (4) In the event the Financial Services Authority's data communication network system is not yet available, experiences technical disturbances, or force majeure occurs as referred to in paragraph (3), the Financial Services Authority announces this on the Financial Services Authority website or via email to the Bullion Business Activity Organizer LJK. https://jdih.ojk.go.id/

(5) In the event the email designated by the Financial Services Authority as referred to in paragraph (3) experiences technical disturbances, the Bullion Business Activity Organizer LJK submits monthly reports on the management of Bullion Business Activities in the form of electronic documents using electronic data storage media, which are sent offline to the Financial Services Authority via a letter signed by the Board of Directors. (6) The submission of monthly reports on the management of Bullion Business Activities in the form of electronic documents using electronic data storage media, sent offline as referred to in paragraph (5), is conducted by:
a. being delivered directly to the Financial Services Authority office; or b. being sent via a courier service company.
(7) The Bullion Business Activity Organizer LJK is deemed to have submitted monthly reports on the management of Bullion Business Activities with the following conditions:
a. for online submission via:

1. the Financial Services Authority's data communication network system, evidenced by a receipt from the Financial Services Authority's data communication network system; or
2. email to the Financial Services Authority, evidenced by proof of email transmission and/or receipt from the Financial Services Authority's email, in the event submission via the Financial Services Authority's data communication network system cannot be performed or force majeure occurs; or
   b. for offline submission in the form of electronic documents using electronic data storage media, evidenced by a receipt from the Financial Services Authority. (8) If the deadline for report submission as referred to in paragraph (1) falls on a holiday, the deadline for report submission is on the next working day. (9) If the deadline for report submission as referred to in paragraph (1) falls on a national holiday or combined holiday, the Financial Services Authority has the authority to set the deadline for report submission. (10) The Financial Services Authority has the authority to set a different deadline for report submission from the provisions as referred to in paragraph (1) for specific conditions. https://jdih.ojk.go.id/

(11) Further regulations concerning monthly reports on the management of Bullion Business Activities are established by the Financial Services Authority.

Second Section
Other Reports
Article 44
(1) The Financial Services Authority has the authority to request the Bullion Business Activity Organizer LJK to submit other reports besides those referred to in Article 42. (2) The Bullion Business Activity Organizer LJK is required to fulfill the Financial Services Authority's request as referred to in paragraph (1).

Third Section
Administrative Sanctions
Article 45
(1) Violations of the provisions as referred to in Article 42, Article 43 paragraph (1), paragraph (2), and Article 44 paragraph (2) are subject to administrative sanctions in the form of:
a. written warning or reprimand; b. suspension of certain business activities;
c. restriction of certain business activities;
d. downgrade of health status; e. revocation of approval; f. prohibition on issuing new products; g. prohibition on expanding business activities; h. prohibition on conducting new business activities;
i. prohibition as a principal party in accordance with Financial Services Authority Regulations regarding re-evaluation of principal parties of financial service institutions;
j. administrative fine; and/or k. revocation of the Bullion Business Activity License.
(2) Administrative sanctions as referred to in paragraph (1) letters b through j may be imposed with or without being preceded by the imposition of administrative sanctions in the form of written warning as referred to in paragraph (1) letter a. (3) The Bullion Business Activity Organizer LJK that violates the provisions of Article 43 paragraph (1) is subject to administrative sanctions in the form of an administrative fine of Rp1,000,000.00 (one million rupiah) per day of delay and at most Rp30,000,000.00 (thirty million rupiah). (4) Information errors submitted in monthly reports on the management of Bullion Business Activities as referred to in Article 42 and other reports as referred to in Article 44, based on findings by the Bullion Business Activity Organizer LJK or the Financial Services Authority, are subject to administrative sanctions in the form of an administrative fine https://jdih.ojk.go.id/

of Rp100,000.00 (one hundred thousand rupiah) per entry error and at most Rp10,000,000.00 (ten million rupiah) per monthly report on the management of Bullion Business Activities and other reports. (5) The imposition of administrative fine sanctions as referred to in paragraph (3) and paragraph (4) does not eliminate the obligation of the Bullion Business Activity Organizer LJK to submit and/or correct monthly reports on the management of Bullion Business Activities and other reports. (6) Administrative fine sanctions as referred to in paragraph (1) letter j are imposed at an amount of Rp100,000,000.00 (one hundred million rupiah). (7) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. conduct a re-evaluation of the principal party that caused the Bullion Business Activity Organizer LJK to violate the provisions as referred to in paragraph (1); and/or b. record the track record of the party that caused the Bullion Business Activity Organizer LJK to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER X
OTHER PROVISIONS
Article 46
The Financial Services Authority may, based on specific considerations, grant approvals or policies different from this Financial Services Authority Regulation.

CHAPTER XI
TRANSITIONAL PROVISIONS
Article 47
For LJK that have obtained business licenses from the Financial Services Authority before this Financial Services Authority Regulation takes effect and have conducted Gold Savings, Gold Financing, Gold Custody, and/or Gold Trading activities, must submit applications for licenses to manage Bullion Business Activities to the Financial Services Authority at the latest 6 (six) months from the date this Financial Services Authority Regulation takes effect.

CHAPTER XII
CLOSING PROVISIONS
Article 48
This Financial Services Authority Regulation takes effect on the date of its enactment. https://jdih.ojk.go.id/

This copy is consistent with the original
Director of Legal Development
Legal Department
Aat Windradi

To ensure everyone is aware, ordering the enactment of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on 18 October 2024
CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,
MAHENDRA SIREGAR

Enacted in Jakarta on 18 October 2024
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,

SUPRATMAN ANDI AGTAS
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2024 NUMBER 27/OJK ttd https://jdih.ojk.go.id/

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 17 OF 2024
CONCERNING
THE CONDUCT OF BULLION BUSINESS ACTIVITIES

I. GENERAL

The issuance of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector is one of the important milestones in the history of the Indonesian financial sector. Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector provides the legal basis for Licensed Financial Institutions (LJK) to conduct Bullion Business Activities, which are business activities related to Gold in the form of Gold Savings, Gold Financing, Gold Trading, Gold Custody, and/or other activities conducted by LJK.

Gold is often used as jewelry, coins, investment assets, and as a mixture in the manufacture of aircraft engines, communication equipment, and others. Given its high utilization, it is not surprising that gold is commercialized by various parties.

Indonesia, as one of the gold-producing countries and having relatively high gold reserves in the world, has not been able to optimize the abundance of gold it possesses. Subsequently, the tangible form of the government's efforts to optimize the utilization of gold abundance in Indonesia is done by regulating business activities related to Gold in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.

To provide guidelines for LJK in conducting Bullion Business Activities, it is necessary to regulate several provisions, including those concerning the scope of Bullion Business Activities, requirements for LJK conducting Bullion Business Activities, the licensing mechanism for Bullion Business Activities, the phased implementation of Bullion Business Activities, the application of prudential principles, the application of Good Corporate Governance and Risk Management for LJK conducting Bullion Business Activities, the application of anti-money laundering programs, counter-terrorism financing, and counter-financing of proliferation of weapons of mass destruction, the application of anti-fraud strategies and consumer protection, and reporting.

In relation to this, the Financial Services Authority (OJK) establishes the Financial Services Authority Regulation concerning the Conduct of Bullion Business Activities.

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II. ARTICLE-BY-ARTICLE EXPLANATION

Article 1
Sufficiently clear.

Article 2
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Letter a
The term "adl" means placing something only in its proper place and giving something only to those entitled, and treating something according to its position. The term "tawazun" means balance between material and spiritual aspects, private and public aspects, financial sector and real sector, business and social aspects, and balance between utilization and sustainability aspects. The term "maslahah" means all forms of goodness with worldly and hereafter dimensions, material and spiritual, individual and collective, and must meet 3 (three) elements, namely Sharia compliance (halal), beneficial and bringing goodness (thoyib) in all aspects overall without causing harm. The term "alamiyah" means it can be done by, with, and for all interested parties (stakeholders) without distinguishing ethnicity, religion, race, and class, in accordance with the spirit of universal mercy (rahmatan lil alamin).

Letter b
The term "riba" means the addition of income from loans and the exchange of ribawi goods illicitly, including in transactions exchanging similar goods that do not have equal quality, quantity, and time of delivery (fadhl), or in loan transactions requiring the recipient of the facility to return funds received exceeding the principal loan due to the passage of time (nasi'ah). The term "maisir" means transactions dependent on uncertain and gambling-like conditions. The term "gharar" means transactions where the object is unclear, not owned, its existence is unknown, or it cannot be delivered at the time of the transaction, unless otherwise regulated in Sharia. The term "zalim" means transactions that cause injustice to other parties. The term "risywah" means bribery in the form of money, facilities, or other forms that violate the law as an effort to obtain facilities or ease in a transaction.

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The term "maksiat" means human actions that violate moral laws contrary to Sharia Principles.
The term "objek haram" means transactions where the object is prohibited in Sharia.

Letter c
Sufficiently clear.

Article 3
Letter a
Sufficiently clear.

Letter b
Gold Standards in effect according to international practices include those issued by the London Bullion Market Association.

Article 4
Sufficiently clear.

Article 5
Paragraph (1)
The term "unallocated account" refers to a scheme of Customer Gold Savings where the Customer does not physically control the Gold, but the Customer has a claim right over the Gold.

Paragraph (2)
Sufficiently clear.

Article 6
Sufficiently clear.

Article 7
Sufficiently clear.

Article 8
Sufficiently clear.

Article 9
Sufficiently clear.

Article 10
Returns in the form of Gold are made by the Gold Financing Customer over the principal Gold borrowed, and not in cash form.

Article 11
Sufficiently clear.

Article 12
Sufficiently clear.

Article 13
Paragraph (1)
The term "physically" means that the Gold traded physically has met the quantity and quality standards of Gold based on this Financial Services Authority Regulation, and is traded through spot transactions.

Paragraph (2)
Sufficiently clear.

Article 14
Paragraph (1)
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
Other obligations include maintaining security and preserving the condition of the deposited Gold.

Paragraph (2)
The term "allocated account" is a Gold account managed in the name of the Customer, in accordance with the agreement, which is placed in the storage (vaulting) of the LJK conducting Bullion Business Activities, and the LJK conducting Bullion Business Activities does not have ownership rights over the Gold.

Article 15
Sufficiently clear.

Article 16
Sufficiently clear.

Article 17
Sufficiently clear.

Article 18
Sufficiently clear.

Article 19
Sufficiently clear.

Article 20
Paragraph (1)
Administrative sanctions are imposed by considering, among others:
a. complexity of the violation of regulations; b. repeated violations of regulations; and/or
c. impact of the violation of regulations on consumer losses, the financial condition of the LJK conducting Bullion Business Activities, and the financial services sector.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

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Article 21
Paragraph (1)
LJK with main business activities in the distribution of credit or financing include:
conventional commercial banks, Sharia commercial banks, Sharia business units of conventional commercial banks, pawn companies, financing companies, and/or other financial service institutions that distribute credit or financing.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Article 22
Paragraph (1)
The term "core capital" means core capital as referred to in statutory regulations in the banking sector.
The term "equity" means equity based on financial accounting standards.
The term "commercial bank" means conventional commercial banks and Sharia commercial banks.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Article 23
Sufficiently clear.

Article 24
Paragraph (1)
See explanation of Article 20 paragraph (1).

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Article 25
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
Sufficiently clear.

Letter d
Sufficiently clear.

Letter e
Evidence regarding access to global market networks includes, among others, membership of the LJK conducting Bullion Business Activities

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in bullion associations both domestically and internationally.

Paragraph (3)
Provisions of sectoral statutory regulations, among others, provisions of statutory regulations regarding:
a. licensing mechanisms for the implementation of new bank products applicable to commercial banks and Sharia commercial banks as regulated in statutory regulations in the banking sector; and/or b. approval mechanisms for other business activities applicable to pawn companies as regulated in statutory regulations in the financing institution sector, venture capital companies, and other financial service institutions.

Article 26
Sufficiently clear.

Article 27
Sufficiently clear.

Article 28
Paragraph (1)
The value recorded in Gold Trading is the net transaction value, with a calculation simulation as follows:
LJK conducting Bullion Business Activities A records transactions as follows:
Gold Savings value = 300 kilograms
Gold Financing value = 150 kilograms
Gold Trading value (sell) = 100 kilograms
Gold Trading value (buy) = 80 kilograms then the ratio of the use of Gold sourced from Gold Savings which are unallocated accounts against the distribution of Gold Financing and Gold Trading is as follows:
[(Gold Financing value + Net Gold Trading value) / Gold Savings value] x 100% = [150 + (100-80)] = 56.67% Thus, LJK conducting Bullion Business Activities A is stated to meet the maximum ratio limit for the use of Gold sourced from Gold Savings which are unallocated accounts against the distribution of Gold Financing and Gold Trading in the first stage, namely at most 70% (seventy percent).

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

x 100% https://jdih.ojk.go.id/

Article 29
The value recorded in Gold Trading is the net transaction value, with a calculation simulation as follows:
LJK conducting Bullion Business Activities B records transactions as follows:
Gold Savings value = 350 kilograms
Gold Financing value = 220 kilograms
Gold Trading value (sell) = 120 kilograms
Gold Trading value (buy) = 80 kilograms then the ratio of the use of Gold sourced from Gold Savings which are unallocated accounts against the distribution of Gold Financing and Gold Trading is as follows:
[(Gold Financing value + Net Gold Trading value) / Gold Savings value] x 100% [220+(120-80)] = = 74.2% Thus, LJK conducting Bullion Business Activities B is stated to meet the maximum ratio limit for the use of Gold sourced from Gold Savings which are unallocated accounts against the distribution of Gold Financing and Gold Trading in the second stage, namely at most 80% (eighty percent).

Article 30
Paragraph (1)
The value recorded in Gold Trading is the net transaction value, with a calculation simulation as follows:
LJK conducting Bullion Business Activities C records transactions as follows:
Gold Savings value = 350 kilograms
Gold Financing value = 300 kilograms
Gold Trading value (sell) = 120 kilograms
Gold Trading value (buy) = 80 kilograms then the ratio of the use of Gold sourced from Gold Savings which are unallocated accounts is as follows:
[(Gold Financing value + Net Gold Trading value) / Gold Savings value] x 100% [300+(120-80)] = 97.14% Thus, LJK conducting Bullion Business Activities C is stated not to meet the maximum ratio limit for the use of Gold sourced from Gold Savings which are unallocated accounts against the distribution of Gold Financing and Gold Trading in the third stage, namely at most 90% (ninety percent).

Paragraph (2)
Sufficiently clear.

x 100% x 100% https://jdih.ojk.go.id/

Article 31
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
The term "sequentially" means that the implementation of the phases cannot be carried out without passing through the subsequent phases.
An example of implementing the second stage can only be carried out after an evaluation of the implementation of Bullion Business Activities in the first stage, or the implementation of the third stage can only be carried out after an evaluation of the implementation of Bullion Business Activities in the second stage.

Article 32
Sufficiently clear.

Article 33
Paragraph (1)
See explanation of Article 20 paragraph (1).

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Article 34
Sufficiently clear.

Article 35
Paragraph (1)
The term "provisions concerning prudential principles applicable to related sectoral LJK" includes, among others:
a. provisions concerning minimum capital provision requirements; b. provisions concerning maximum credit limits/maximum fund distribution limits;
c. provisions concerning asset quality; and/or
d. provisions concerning liquidity.

Paragraph (2)
Sufficiently clear.

Article 36
Paragraph (1)
See explanation of Article 20 paragraph (1).

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

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Article 37
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Financial Services Authority Regulations concerning the application of good corporate governance applicable to related sectoral LJK include, among others:
a. Financial Services Authority Regulations concerning the application of governance for commercial banks; b. Financial Services Authority Regulations concerning the application of Sharia governance for Sharia commercial banks and Sharia business units; and/or
c. Financial Services Authority Regulations concerning the application of good corporate governance for financing companies.

Article 38
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Financial Services Authority Regulations concerning the application of Risk Management applicable to related sectoral LJK include, among others:
a. Financial Services Authority Regulations concerning the application of Risk Management for commercial banks and Sharia commercial banks; b. Financial Services Authority Regulations concerning the application of Risk Management for rural economic banks and Sharia rural economic banks; and/or
c. Financial Services Authority Regulations concerning the application of Risk Management for non-bank financial service institutions.

Article 39
Sufficiently clear.

Article 40
Sufficiently clear.

Article 41
Sufficiently clear.

Article 42
Sufficiently clear.

Article 43
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Force majeure conditions include, among others, fire, mass riots, war, armed conflict, sabotage, and natural disasters such as floods and earthquakes that disrupt operational activities.

Paragraph (4)
Sufficiently clear.

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Paragraph (5)
Electronic documents using electronic data storage media include, among others, flash disks and hard disks.

Paragraph (6)
Sufficiently clear.

Paragraph (7)
Sufficiently clear.

Paragraph (8)
Sufficiently clear.

Paragraph (9)
Sufficiently clear.

Paragraph (10)
Specific conditions include, among others:
a. force majeure; b. pandemic; and/or
c. technical disturbances to the OJK data communication network system and email determined by the Financial Services Authority.

Paragraph (11)
Sufficiently clear.

Article 44
Paragraph (1)
Other reports include, among others, reports concerning information and/or specific documents for supervisory needs.

Paragraph (2)
Sufficiently clear.

Article 45
Paragraph (1)
See explanation of Article 20 paragraph (1).

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Sufficiently clear.

Paragraph (7)
Sufficiently clear.

Article 46
The granting of different approvals or policies is intended, among others, to:
a. support national policies; b. protect public interests;
c. protect industry growth; and/or
d. protect healthy business competition.
Conditions requiring specific consideration include, among others, extraordinary events that can cause a significant increase in illness and death and impact the economy and society, thus requiring attention and handling by all relevant parties and regulated in other provisions based on considerations in facing possible extraordinary events.

Article 47
Gold purchase installment activities as well as cash financing with gold collateral are stated to remain able to be conducted as activities commonly carried out by banks, financing institutions, and other financial service institutions, without needing to apply for a license as a conductor of Bullion Business Activities.

Article 48
Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 95/OJK https://jdih.ojk.go.id/