FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 20 OF 2023
CONCERNING
INSURANCE PRODUCTS LINKED TO CREDIT OR SHARIA FINANCING AND SURETYSHIP OR SHARIA SURETYSHIP PRODUCTS BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to maintain the level of risk exposure of insurance products linked to credit or Sharia financing and suretyship or Sharia suretyship to be managed prudently, and to provide better protection to interested parties, it is necessary to adjust regulations regarding the conduct of the credit insurance and suretyship business line; b. that the current regulations regarding the conduct of the credit insurance and suretyship business line are no longer in line with market needs and developments, so it is necessary to change them into a Financial Services Authority Regulation;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Insurance Products Linked to Credit or Sharia Financing and Suretyship or Sharia Suretyship Products;

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 40 of 2014 concerning Insurance (State Gazette of the Republic of Indonesia Year 2014 Number 337, Supplement to the State Gazette of the Republic of Indonesia Number 5618) 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);

DECIDING:
To establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING INSURANCE PRODUCTS LINKED TO CREDIT OR SHARIA FINANCING AND SURETYSHIP OR SHARIA SURETYSHIP PRODUCTS.

CHAPTER I
GENERAL PROVISIONS

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

1. Insurance is an agreement between two parties, namely the insurance company and the policyholder, which serves as the basis for the receipt of premiums by the insurance company as compensation for:
   a. providing compensation to the insured or policyholder for losses, damages, costs incurred, loss of profit, or legal liability to third parties that may be suffered by the insured or policyholder due to the occurrence of an uncertain event; or b. providing payments based on the death of the insured or payments based on the life of the insured with benefits whose amount has been determined and/or based on the results of fund management.
2. Sharia Insurance is a collection of agreements, consisting of agreements between the Sharia insurance company and the policyholder and agreements among the policyholders, in the context of managing contributions based on Sharia principles to assist and protect each other by:
   a. providing compensation to participants or policyholders for losses, damages, costs incurred, loss of profit, or legal liability to third parties that may be suffered by participants or policyholders due to the occurrence of an uncertain event; or b. providing payments based on the death of participants or payments based on the life of participants with benefits whose amount has been determined and/or based on the results of fund management.
3. General Insurance Business is a risk underwriting service business that provides compensation to the insured or policyholder for losses, damages, costs incurred, loss of profit, or legal liability to third parties that may be suffered by the insured or policyholder due to the occurrence of an uncertain event.
4. Life Insurance Business is a business that provides risk mitigation services that provide payments to the policyholder, insured, or other entitled parties in the event of the insured's death or continued life, or other payments to the policyholder, insured, or other entitled parties at a certain time as regulated in the agreement, the amount of which has been determined and/or based on the results of fund management.
5. Sharia General Insurance Business is a risk management business based on Sharia principles to assist and protect each other by providing compensation to participants or policyholders for losses, damages, costs incurred, loss of profit, or legal liability to third parties that may be suffered by participants or policyholders due to the occurrence of an uncertain event.
6. Sharia Life Insurance Business is a risk management business based on Sharia principles to assist and protect each other by providing payments based on the death or life of participants, or other payments to participants or other entitled parties at a certain time as regulated in the agreement, the amount of which has been determined and/or based on the results of fund management.
7. General Insurance Company is a company that conducts General Insurance Business.
8. Life Insurance Company is a company that conducts Life Insurance Business.
9. Sharia General Insurance Company is a company that conducts Sharia General Insurance Business.
10. Sharia Life Insurance Company is a company that conducts Sharia Life Insurance Business.
11. Insurance Company is General Insurance Companies and Life Insurance Companies.
12. Sharia Insurance Company is Sharia General Insurance Companies and Sharia Life Insurance Companies.
13. Company is Insurance Companies and Sharia Insurance Companies.
14. Debtor is a party that has financial obligations or debts based on credit agreements, financing, Sharia financing, or credit transactions.
15. Creditor is a party that has financial rights or receivables based on credit agreements, financing, Sharia financing, or credit transactions.
16. Credit is the provision of money or receivables that can be equated with it, including the financing of goods and/or services, based on mutual consent or agreement between the Creditor and Debtor, which obligates the borrower to repay their debt after a certain period with the provision of interest.
17. Sharia Financing is the provision of funds or receivables equated with it in the form of profit-sharing transactions, leasing transactions including service leasing, sales and purchase transactions, and loan transactions based on mutual consent or agreement between the Creditor and Debtor, which obligates the financed party and/or the party given financial facilities to return the funds after a certain period with compensation in the form of profit-sharing, ujrah, margin, or without compensation.
18. Credit Insurance is the General Insurance Business line that provides coverage for the risk of failure of the Debtor to fulfill financial obligations to the Creditor according to the Credit agreement.
19. Sharia Financing Insurance is the Sharia General Insurance Business line that provides management of the risk of failure of the Debtor to fulfill financial obligations to the Creditor according to the Sharia Financing agreement.
20. Credit Life Insurance is a Life Insurance product that provides at least coverage for the risk of death and is linked to the fulfillment of the Debtor's financial obligations to the Creditor according to the Credit agreement.
21. Sharia Financing Life Insurance is a Sharia Life Insurance product that provides at least management of the risk of death and is linked to the fulfillment of the Debtor's financial obligations to the Creditor.
22. Suretyship is the General Insurance Business line that provides guarantees for the principal's ability to fulfill obligations according to the main agreement between the principal and the obligee.
23. Sharia Suretyship is the Sharia General Insurance Business line that provides guarantees for the principal's ability to fulfill obligations according to the main agreement between the principal and the obligee.
24. Surety is a General Insurance Company or Sharia General Insurance Company that markets Suretyship or Sharia Suretyship products.
25. Principal is a party in a Suretyship or Sharia Suretyship agreement who must fulfill obligations to the obligee based on the main agreement.
26. Obligee is a party in a Suretyship or Sharia Suretyship agreement who has the right to receive the fulfillment of obligations from the Principal based on the main agreement.
27. Marketer is a party that conducts the marketing of insurance products.

CHAPTER II
INSURANCE PRODUCTS LINKED TO CREDIT BY GENERAL INSURANCE COMPANIES AND INSURANCE PRODUCTS LINKED TO SHARIA FINANCING BY SHARIA GENERAL INSURANCE COMPANIES

Article 2
(1) General Insurance Companies may market Insurance products linked to Credit.
(2) Sharia General Insurance Companies may market Sharia Insurance products linked to Sharia Financing.
(3) Insurance products linked to Credit as referred to in paragraph (1) include:
a. Credit Insurance products for Credit disbursement transactions; b. Credit Insurance products for trade transactions; and
c. Personal Accident Insurance products that provide benefits for the payment of the Debtor's financial obligations to the Creditor for risks consisting of:

1. Debtor's death due to accident;
2. Debtor suffering total or partial permanent disability due to accident;
3. Debtor suffering a critical illness condition; and/or
4. Debtor losing their job which is not caused by:
   a) Debtor's request; b) unlawful acts; and/or c) breach of employment agreement by the Debtor.
   (4) Sharia Insurance products linked to Sharia Financing as referred to in paragraph (2) include:
   a. Sharia Financing Insurance products for Sharia Financing disbursement; b. Sharia Financing Insurance products for trade transactions;
   c. Personal Accident Insurance products that provide benefits for the payment of the Debtor's financial obligations to the Creditor for risks consisting of:
5. Debtor's death due to accident;
6. Debtor suffering total or partial permanent disability due to accident;
7. Debtor suffering a critical illness condition that causes inability to pay financial obligations; and/or
8. Debtor losing their job which is not caused by:
   a) Debtor's request; b) unlawful acts; and/or c) breach of employment agreement by the Debtor.
   (5) Credit Insurance Products and Sharia Financing Insurance Products can only cover the risk of the Debtor's failure to fulfill their obligations to the Creditor. (6) General Insurance Companies and Sharia General Insurance Companies that will market products linked to Credit or Sharia Financing must meet the following requirements:
   a. health level with a composite rating of at least rank 2 (two) as regulated in the Financial Services Authority Regulation concerning the assessment of the health level of non-bank financial service institutions; b. minimum solvency level as regulated in the Financial Services Authority Regulation concerning the financial health of insurance and reinsurance companies and the Financial Services Authority Regulation concerning the financial health of insurance and reinsurance companies with Sharia principles; and
   c. investment adequacy as regulated in the Financial Services Authority Regulation concerning the financial health of insurance and reinsurance companies and the Financial Services Authority Regulation concerning the financial health of insurance and reinsurance companies with Sharia principles.

Article 3
(1) General Insurance Companies and Sharia General Insurance Companies are prohibited from providing coverage/management for the risk of natural death. (2) In the event there is coverage for the risk of natural death as referred to in paragraph (1), General Insurance Companies must cooperate with Life Insurance Companies. (3) In the event there is management for the risk of natural death as referred to in paragraph (1), Sharia General Insurance Companies must cooperate with Sharia Life Insurance Companies. (4) Cooperation as referred to in paragraph (2) and paragraph (3) must meet regulations regarding joint insurance products as referred to in the Financial Services Authority Regulation concerning insurance products and marketing of insurance products. (5) In the event that General Insurance Companies and/or Life Insurance Companies conducting cooperation as referred to in paragraph (2) meet the conditions:
a. are subject to a prohibition on marketing Insurance products linked to Credit based on instructions from the Financial Services Authority; b. are subject to a prohibition on marketing Insurance products linked to Credit based on statutory regulations; or
c. the cooperation agreement ends,
General Insurance Companies and/or Life Insurance Companies must stop marketing the joint insurance products and continue the ongoing coverage until the coverage period ends. (6) In the event that Sharia General Insurance Companies and/or Sharia Life Insurance Companies conducting cooperation as referred to in paragraph (2) meet the conditions:
a. are subject to a prohibition on marketing Sharia Insurance products linked to Sharia Financing based on instructions from the Financial Services Authority; b. are subject to a prohibition on marketing Sharia Insurance products linked to Sharia Financing based on statutory regulations; or
c. the cooperation agreement ends,
Sharia General Insurance Companies and/or Sharia Life Insurance Companies must stop marketing the joint insurance products and continue the ongoing participation until the participation period ends.

Article 4
(1) General Insurance Companies marketing Credit Insurance products as referred to in Article 2 paragraph (3) letters a and b and Sharia General Insurance Companies marketing Sharia Financing Insurance products as referred to in Article 2 paragraph (4) letters a and b must:
a. at all times have:

1. for General Insurance Companies:
   a) a liquidity ratio of at least 150% (one hundred fifty percent); and b) minimum equity of at least:

1. Rp250,000,000,000.00 (two hundred fifty billion rupiah) or 150% (one hundred fifty percent) of the applicable minimum equity requirements, whichever is higher, until December 31, 2028; or
2. Rp1,000,000,000,000.00 (one trillion rupiah) after December 31, 2028; or

2. for Sharia General Insurance Companies:
   a) a liquidity ratio of company funds and tabarru' funds each of at least 150% (one hundred fifty percent); and b) total equity of company funds after considering the need for qardh provision to tabarru' funds of at least:

1. Rp100,000,000,000.00 (one hundred billion rupiah) or 150% (one hundred fifty percent) of the applicable minimum equity requirements, whichever is higher, until December 31, 2028; or
2. Rp500,000,000,000.00 (five hundred billion rupiah) after December 31, 2028;
   b. have an information system that is at least capable of being used for:

1. obtaining, maintaining, and processing information regarding Insurance or Sharia Insurance objects for:
   a) assessment of the risk level of the Insurance or Sharia Insurance object; b) determination of premiums/contributions; c) valuation of technical reserves or technical provisions; and d) monitoring and evaluation of product performance; and
2. verifying the validity of Insurance or Sharia Insurance closures;
   c. have a work unit or function responsible for the management of Credit Insurance or Sharia Financing Insurance;
   d. have insurance experts who are responsible for the work unit or function as referred to in letter c, who meet the requirements:
3. have at least 3 (three) years of experience as an underwriter in the Credit Insurance, Sharia Financing Insurance business lines, or as a credit analyst; and
4. have previously attended education or training specifically conducted in the field of Credit Insurance or Sharia Financing Insurance;
   e. have employees at the head office and branches assigned specifically to manage Credit Insurance or Sharia Financing Insurance who have undergone special education and training in the field of Credit Insurance or Sharia Financing Insurance; and f. conduct continuous education and training programs for employees responsible in the management of Credit Insurance or Sharia Financing Insurance. (2) In the event that General Insurance Companies and Sharia General Insurance Companies that have marketed Credit Insurance products or Sharia Financing Insurance products do not meet the requirements as referred to in paragraph (1), General Insurance Companies and Sharia General Insurance Companies are prohibited from marketing Credit Insurance products as referred to in Article 2 paragraph (3) letters a and b and Sharia Financing Insurance products as referred to in Article 2 paragraph (4) letters a and b.

Article 5
(1) General Insurance Companies and Sharia General Insurance Companies must have risk sharing with Creditors in the conduct of Credit Insurance and Sharia Financing Insurance Products. (2) General Insurance Companies and Sharia General Insurance Companies must determine the risks covered by the Creditor as referred to in paragraph (1) to be at least 25% (twenty-five percent) of the Credit or Sharia Financing balance value at the time the covered risk occurs. (3) The portion of risk covered by the Creditor as referred to in paragraph (2) must be stated in the insurance policy. (4) General Insurance Companies and Sharia General Insurance Companies are prohibited from accepting coverage for the portion of risk covered by the Creditor as referred to in paragraph (1) and paragraph (2).

Article 6
(1) The coverage value/gross benefits and self-retention value for each risk in Credit Insurance or Sharia Financing Insurance are subject to the following provisions:
a. the coverage value/gross benefits, at most 10% (ten percent) of the equity of General Insurance Companies and Sharia General Insurance Companies; and b. the self-retention value, at most 5% (five percent) of the equity of General Insurance Companies and Sharia General Insurance Companies. (2) In the event there is cash collateral in Credit or Sharia Financing, the coverage value/gross benefits and self-retention value for each risk in Credit Insurance or Sharia Financing Insurance as referred to in paragraph (1) are calculated after being reduced by the cash collateral.

Article 7
(1) General Insurance Companies and Sharia General Insurance Companies are prohibited from applying subrogation for Insurance products linked to Credit as referred to in Article 2 paragraph (3) letter c and Sharia Insurance products linked to Sharia Financing as referred to in Article 2 paragraph (4) letter c. (2) General Insurance Companies and Sharia General Insurance Companies may apply subrogation for Insurance products linked to Credit as referred to in Article 2 paragraph (3) letters a and b and Sharia Insurance products linked to Sharia Financing as referred to in Article 2 paragraph (4) letters a and b. (3) General Insurance Companies and Sharia General Insurance Companies applying subrogation as referred to in paragraph (2) must have standard procedures for the implementation of subrogation. (4) The results of loss recovery based on subrogation are shared between General Insurance Companies or Sharia General Insurance Companies and Creditors based on mutual agreement considering the principles of proportionality and fairness.

Article 8
(1) Violations of the provisions as referred to in Article 3, Article 4, Article 5, and/or Article 7 paragraph (1) are subject to administrative sanctions in the form of:
a. written warnings; and/or b. reduction of health level.
(2) In the event that violations of the provisions as referred to in paragraph (1) occur but the violations have been corrected, the Financial Services Authority imposes written warning sanctions that end automatically. (3) In the event that violations of the provisions as referred to in paragraph (1) have been fulfilled, the Financial Services Authority revokes the written warning sanctions.

Article 9
In addition to imposing administrative sanctions as referred to in Article 8 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the main parties of the Company.

CHAPTER III
CREDIT LIFE INSURANCE BY LIFE INSURANCE COMPANIES AND SHARIA FINANCING LIFE INSURANCE BY SHARIA LIFE INSURANCE COMPANIES

Article 10
(1) Life Insurance Companies may market Insurance products linked to Credit in the form of Credit Life Insurance.
(2) Sharia Life Insurance Companies may market Sharia Insurance products linked to Sharia Financing in the form of Sharia Financing Life Insurance. (3) Life Insurance Companies marketing Credit Life Insurance products as referred to in paragraph (1) and Sharia Life Insurance Companies marketing Sharia Financing Life Insurance products as referred to in paragraph (2) are prohibited from providing coverage other than for risks:
a. Debtor's death; b. Debtor suffering total or partial permanent disability due to accident; and/or
c. Debtor suffering a critical illness condition.

Article 11
Life Insurance Companies marketing Credit Life Insurance products and Sharia Life Insurance Companies marketing Sharia Financing Life Insurance products must:
a. have an information system that is at least capable of being used for:

1. obtaining, maintaining, and processing information regarding Insurance or Sharia Insurance objects for:
   a) assessment of the risk level of the Insurance or Sharia Insurance object; b) determination of premiums/contributions; c) valuation of technical reserves or technical provisions; and d) monitoring and evaluation of product performance; and
2. verifying the validity of Insurance or Sharia Insurance closures; and
   b. have a work unit or function responsible for the management of Credit Life Insurance or Sharia Financing Life Insurance.

Article 12
Life Insurance Companies and Sharia Life Insurance Companies are prohibited from applying subrogation for Credit Life Insurance products as referred to in Article 10 paragraph (1) and Sharia Financing Life Insurance products as referred to in Article 10 paragraph (2).

Article 13
(1) Violations of the provisions as referred to in Article 10 paragraph (3), Article 11, and/or Article 12 are subject to administrative sanctions in the form of:
a. written warnings; and/or b. reduction of health level.
(2) In the event that violations of the provisions as referred to in paragraph (1) occur but the violations have been corrected, the Financial Services Authority imposes written warning sanctions that end automatically. (3) In the event that violations of the provisions as referred to in paragraph (1) have been fulfilled, the Financial Services Authority revokes the written warning sanctions.

Article 14
In addition to imposing administrative sanctions as referred to in Article 13 paragraph (1), the Financial Services Authority (Otoritas Jasa Keuangan) has the authority to conduct a re-evaluation of the Company's principal parties.

CHAPTER IV
SURETYSHIP AND SURETYSHIP SYARIAH

Article 15
(1) General Insurance Companies may market Suretyship products.
(2) General Insurance Sharia Units may market Sharia Suretyship products.
(3) Suretyship products as referred to in paragraph (1) include:
a. guarantees for the procurement of goods/services; b. customs guarantees;
c. excise guarantees; and
d. counter bank guarantees.
(4) Sharia Suretyship products as referred to in paragraph (2) include:
a. Sharia guarantees for the procurement of goods/services; b. Sharia customs guarantees;
c. Sharia excise guarantees; and
d. Sharia counter bank guarantees.
(5) Sharia Suretyship products as referred to in paragraph (2) must use the kafalah bil ujrah contract.
(6) The kafalah bil ujrah contract as referred to in paragraph (5) is implemented with the following provisions:
a. General Insurance Sharia Units act as Surety; b. General Insurance Sharia Units cannot guarantee transactions and objects that contradict Sharia principles; and
c. Claim payments only originate from the funds of General Insurance Sharia Units.

Article 16
(1) General Insurance Companies intending to market Suretyship products and General Insurance Sharia Units intending to market Sharia Suretyship products must meet the following provisions:
a. health level with a composite rating of at least rating 2 (two) as regulated in the Financial Services Authority Regulation regarding the assessment of the health level of non-bank financial service institutions; b. minimum solvency level as regulated in the Financial Services Authority Regulation regarding the financial health of insurance and reinsurance companies and the Financial Services Authority Regulation regarding the financial health of insurance and reinsurance companies with Sharia principles; and
c. investment adequacy as regulated in the Financial Services Authority Regulation regarding the financial health of insurance and reinsurance companies and the Financial Services Authority Regulation regarding the financial health of insurance and reinsurance companies with Sharia principles.
(2) General Insurance Companies marketing Suretyship products as referred to in Article 15 paragraph (1) and General Insurance Sharia Units marketing Sharia Suretyship products as referred to in Article 15 paragraph (2) must:
a. at all times possess:

1. for General Insurance Companies:
   a) a liquidity ratio of at least 150% (one hundred fifty percent); and b) minimum equity of at least:
   1. Rp250,000,000,000.00 (two hundred fifty billion rupiah) or 150% (one hundred fifty percent) of the applicable minimum equity provisions, whichever is higher, until December 31, 2028; or
   2. Rp1,000,000,000,000.00 (one trillion rupiah) after December 31, 2028;
2. for General Insurance Sharia Units:
   a) a liquidity ratio of company funds and tabarru’ funds, each of at least 150% (one hundred fifty percent); and b) total equity of company funds after considering the needs for providing qardh to tabarru’ funds, of at least:
   1. Rp100,000,000,000.00 (one hundred billion rupiah) or 150% (one hundred fifty percent) of the applicable minimum equity provisions, whichever is higher, until December 31, 2028; or
   2. Rp500,000,000,000.00 (five hundred billion rupiah) after December 31, 2028;
      b. possess an information system capable of being used for at least:
3. obtaining, maintaining, and processing information regarding Insurance or Sharia Insurance objects for:
   a) assessing the risk level of Insurance or Sharia Insurance objects; b) determining premiums/contributions; c) valuing technical reserves or technical provisions; and d) monitoring and evaluating product performance; and
4. verifying the correctness of Suretyship or Sharia Suretyship closures;
   c. possess a work unit or function responsible for the management of Suretyship or Sharia Suretyship;
   d. possess insurance experts who are responsible for the work unit or function as referred to in letter c, meeting the following requirements:
5. having at least 3 (three) years of experience as a Suretyship or Sharia Suretyship underwriter;
6. having previously attended education or training specifically organized in the field of Suretyship or Sharia Suretyship; and
7. possessing underwriter certification qualifications in the field of Suretyship or Sharia Suretyship issued by a certification body in the insurance profession registered with the Financial Services Authority;
   e. possess employees at the head office and branches specifically assigned to manage Suretyship or Sharia Suretyship who have undergone specialized education and training in the field of Suretyship or Sharia Suretyship; and f. implement continuous education and training programs for employees responsible for the management of Suretyship or Sharia Suretyship. (3) In the event that General Insurance Companies and General Insurance Sharia Units that have marketed Suretyship or Sharia Suretyship fail to meet the provisions as referred to in paragraph (2), General Insurance Companies and General Insurance Sharia Units are prohibited from marketing Suretyship products as referred to in Article 15 paragraph (3) and Sharia Suretyship products as referred to in Article 15 paragraph (4).

Article 17
(1) Gross guarantee values and self-retention guarantee values for each risk on Suretyship or Sharia Suretyship products are subject to the following provisions:
a. gross guarantee values, at most 30% (thirty percent) of the equity of General Insurance Companies and General Insurance Sharia Units; and b. self-retention guarantee values, at most 10% (ten percent) of the equity of General Insurance Companies and General Insurance Sharia Units. (2) In the event that cash guarantees exist on Suretyship or Sharia Suretyship products, the gross guarantee values and self-retention guarantee values for each risk on Suretyship or Sharia Suretyship products as referred to in paragraph (1) are calculated after deducting cash guarantees.

Article 18
(1) General Insurance Companies and General Insurance Sharia Units may apply subrogation for Suretyship and Sharia Suretyship products. (2) General Insurance Companies and General Insurance Sharia Units applying subrogation as referred to in paragraph (1) must have standard procedures for the implementation of subrogation. (3) Loss recovery results based on subrogation are distributed between General Insurance Companies or General Insurance Sharia Units and Creditors based on mutual agreement considering the principles of proportionality and fairness.

Article 19
(1) Violations of the provisions as referred to in Article 15 paragraph (5), Article 16 paragraph (2), paragraph (3), and/or Article 18 paragraph (2) are subject to administrative sanctions in the form of:
a. written warnings; and/or b. reduction of health level.
(2) In the event that violations of the provisions as referred to in paragraph (1) occur but have been rectified, the Financial Services Authority imposes written warning sanctions that expire automatically. (3) In the event that violations of the provisions as referred to in paragraph (1) have been fulfilled, the Financial Services Authority revokes the written warning sanctions.

Article 20
In addition to imposing administrative sanctions as referred to in Article 19 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's principal parties.

CHAPTER V
PREMIUMS, CONTRIBUTIONS, UNDERWRITING, AND CLAIMS

Article 21
(1) Companies determine premium/contribution amounts with the following provisions:
a. in accordance with the risks covered/managed, and the promised benefits; and b. determined at levels that are sufficient, not excessive, and not applied discriminatorily. (2) The determination of premiums/contributions as referred to in paragraph (1) must be based on reasonable assumptions and generally accepted insurance practices. (3) The determination of premiums/contributions as referred to in paragraph (1) for Credit Insurance, Sharia Financing Insurance, Suretyship, and Sharia Suretyship products must be calculated by considering at least:
a. pure premiums/contributions determined based on at least:

1. risk and loss profiles of the relevant insurance types for the last 5 (five) years, or if unavailable, the following may be used:
   a) risk and loss profiles of the relevant insurance types for less than 5 (five) years; or b) accurate information from trusted sources to predict the frequency and magnitude (severity) of risks on insurance or guarantee objects;
2. the results of risk assessments on each insurance or guarantee object; and
3. the duration of insurance or guarantees; and
   b. acquisition costs, administrative costs, other general costs, and profit margins.
   (4) Risk assessments on insurance or guarantee objects as referred to in paragraph (3) letter a number 2 must consider:
   a. for Credit Insurance and Sharia Financing Insurance products at least:
4. the Debtor's ability to meet financial obligations;
5. the quality of the Credit or Sharia Financing portfolio from the Creditor;
6. the risk level on insurance objects for each type of risk covered (proximate cause); and
7. the availability of subrogation; or
   b. for Suretyship and Sharia Suretyship products at least the Principal's ability to meet obligations based on the main agreement and the availability of subrogation. (5) Risk assessments as referred to in paragraph (4) letter a must be conducted for each insured or participant, both for individual policies and group policies. (6) The determination of premiums/contributions for Credit Life Insurance and Sharia Financing Life Insurance products must be calculated by considering at least:
   a. pure premiums/contributions determined based on:
8. mortality and/or morbidity (disability incidence) rates;
9. the results of risk level assessments based on the Debtor's condition; and
10. the duration of insurance; and
    b. acquisition costs, administrative costs, other general costs, and profit margins.
    (7) Risk level assessments as referred to in paragraph (6) letter a number 2 must be conducted at least regarding the Debtor's age and medical history. (8) Acquisition costs for the first time are determined at a maximum of 10% (ten percent) of the premium/contribution tariff. (9) Further provisions regarding the determination of premiums/contributions as referred to in paragraph (3) and paragraph (6) and the adjustment of acquisition cost amounts as referred to in paragraph (8) are determined by the Financial Services Authority.

Article 22
(1) Companies must have risk selection (underwriting) guidelines for every product linked to Credit or Sharia Financing, and Suretyship or Sharia Suretyship, reflecting that the risk selection process is conducted carefully and in accordance with generally accepted insurance practices. (2) Risk selection (underwriting) guidelines as referred to in paragraph (1) contain at least:
a. criteria for insurance or guarantee objects that can be covered or guaranteed; b. restrictions on the scope of risks that can be guaranteed, including coverage terms and conditions, exclusions, insurance or guarantee duration, and risk sharing with policyholders if any;
c. the amount of coverage accepted by the Company considering the Company's capacity and reinsurance support;
d. data and information required for risk assessments on insurance or guarantee objects; and e. stages and procedures for risk selection and premium/contribution determination, including the authority and responsibility of each job level in those stages. (3) Companies must conduct risk selection in accordance with risk selection (underwriting) guidelines. (4) In conducting risk selection as referred to in paragraph (3), Companies must ensure:
a. that they have adequate information regarding the risk level of insurance or guarantee objects; and b. that Credit or Sharia Financing has been conducted in accordance with standard procedures owned by the Creditor.

Article 23
(1) Companies marketing Insurance or Sharia Insurance products linked to Credit or Sharia Financing and/or Suretyship or Sharia Suretyship products must determine:
a. the duration of insurance or guarantees; b. coverage values, benefits, or guarantees;
c. self-retention; and
d. reinsurance support, based on the Company's ability to cover, manage, or guarantee risks.
(2) The determination of duration as referred to in paragraph (1) letter a for:
a. Credit Insurance products as referred to in Article 2 paragraph (3) letter a and letter b; and b. Sharia Financing Insurance products as referred to in Article 2 paragraph (4) letter a and letter b, is determined for a maximum of 5 (five) years and can be extended up to the duration of Credit or Sharia Financing based on periodic evaluations conducted by the Company on the risk profiles of Insurance or Sharia Insurance objects.

Article 24
(1) Coverage/benefit values on Credit Life Insurance, Sharia Financing Life Insurance, and accident insurance linked to Credit or Sharia Financing are determined equal to the Debtor's financial obligations at the time the covered risk occurs. (2) In the event that coverage/benefit values as referred to in paragraph (1) are higher than the Debtor's financial obligations at the time the covered risk occurs, Companies must meet the following provisions:
a. the excess coverage/benefit value is given to the insured, participant, or beneficiary; and b. the entire coverage/benefit value is considered in the determination of premiums/contributions.

Article 25
(1) Companies must make claim, benefit, or guarantee payments to:
a. Creditors; b. recipients of Credit or Sharia Financing; or
c. Obligees.
(2) Companies marketing insurance products jointly are responsible for claim payments in accordance with the risks covered or managed by each Company in accordance with the insurance policy. (3) Companies are prohibited from delaying claim, benefit, or guarantee payments for any reason, including the following reasons:
a. The Company has not received payments from reinsurers for the reinsurance portion of claims; b. The Company is making efforts to enable the Principal party to meet its obligations, without the approval of the Obligee;
c. The Company has not received premium/contribution payments, provided that the grace period for premium/contribution payments has not yet expired; and/or
d. one or more Companies participating in the joint insurance cooperation have not yet paid claims or benefits.

Article 26
(1) Companies may market insurance products linked to Credit or Sharia Financing through marketing channels that are Creditors and/or Marketers. (2) In the event that insured or participants are Debtors of the policyholder or Creditors in Credit or Sharia Financing agreements offered by the policyholder, Companies may use group policies. (3) In the event that insurance products linked to Credit or Sharia Financing use group policies:
a. premiums/contributions can be charged to:

1. insured or participants who are:
   a) Debtors of the policyholder; or b) fund providers in Credit or Sharia Financing agreements offered in financing services based on information technology;
2. policyholders; and
   b. Companies must provide policies to policyholders and insurance certificates to each insured or participant.
   (4) In the event that premium/contribution refunds are made for unexpired insurance periods, premiums/contributions are paid to the party charged with premiums/contributions. (5) Insurance Companies and Sharia Insurance Companies marketing insurance products linked to Credit or Sharia Financing must have cooperation agreements with Creditors or Marketers documented in written documents. (6) Cooperation agreements as referred to in paragraph (5) must contain at least:
   a. the duration of the agreement; b. procedures or methods along with the rights, obligations, and responsibilities of the parties in the process of:
3. providing information regarding insurance products to insured or participants;
4. submitting Insurance or Sharia Insurance applications for insured or participants;
5. submitting data and information regarding prospective insured or participants and credit risk profiles related to prospective insured or participants from partners to Insurance Companies and Sharia Insurance Companies;
6. paying premiums/contributions to Insurance Companies and Sharia Insurance Companies, including the duration thereof;
7. providing policies and/or policy certificates to insured or participants;
8. updating or reconciling coverage or participation data;
9. paying claims, including the duration thereof;
10. implementing subrogation if subrogation exists based on the insurance policy or cooperation agreement, including subrogation data reconciliation;
11. handling and resolving consumer complaints; and
12. resolving disputes between the parties;
    c. marketing commission amounts for Marketers; and
    d. evaluation and review of cooperation.
    (7) Cooperation agreements as referred to in paragraph (5) are prohibited from contradicting the terms and conditions of insurance policies, including extensions or reductions of coverage scope contained within the insurance policy.

Article 27
(1) Companies must possess and update risk profile data for:
a. insurance products linked to Credit or Sharia Financing; b. Suretyship; and
c. Sharia Suretyship.
(2) Companies must conduct periodic studies on risk profiles for insurance products linked to Credit or Sharia Financing based on at least the following types:
a. Creditors or Marketers; b. Credit or Sharia Financing;
c. risks covered; and
d. categories of insured or participants.
(3) Insurance Companies and Sharia Insurance Companies must conduct periodic evaluations of risk profiles for Suretyship or Sharia Suretyship products based on at least the types of guarantees and Principals.

Article 28
(1) Violations of the provisions as referred to in Article 21 paragraph (3), paragraph (5), paragraph (6), Article 22 paragraph (1), paragraph (3), paragraph (4), Article 23 paragraph (1), Article 24 paragraph (2), Article 25 paragraph (1), paragraph (3), and/or Article 26 paragraph (3) letter b, paragraph (5), paragraph (6), paragraph (7) are subject to administrative sanctions in the form of:
a. written warnings; and/or b. reduction of health level.
(2) In the event that violations of the provisions as referred to in paragraph (1) occur but have been rectified, the Financial Services Authority imposes written warning sanctions that expire automatically. (3) In the event that violations of the provisions as referred to in paragraph (1) have been fulfilled, the Financial Services Authority revokes the written warning sanctions.

Article 29
In addition to imposing administrative sanctions as referred to in Article 28 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's principal parties.

CHAPTER VI
OTHER PROVISIONS

Article 30
The Financial Services Authority may, based on certain considerations, provide approvals or policies different from this Financial Services Authority Regulation.

Article 31
Provisions in this Financial Services Authority Regulation do not apply to Credit Insurance or Sharia Financing Insurance products marketed in support of government programs in accordance with applicable legislation.

CHAPTER VII
TRANSITIONAL PROVISIONS

Article 32
(1) Coverage or participation that is already in effect at the time this Financial Services Authority Regulation comes into force is declared to remain in effect until the coverage period ends. (2) Companies and Sharia units in Insurance Companies that have marketed insurance products linked to Credit or Sharia Financing, and/or Suretyship products before this Financial Services Authority Regulation was enacted may continue to market insurance products linked to Credit or Sharia Financing and/or Suretyship products. (3) Companies and Sharia units in Insurance Companies that have marketed insurance products linked to Credit or Sharia Financing and/or Suretyship products as referred to in paragraph (2) must adjust to the provisions in this Financial Services Authority Regulation for a maximum of 1 (one) year since this Financial Services Authority Regulation was enacted. (4) Adjustments to the provisions as referred to in paragraph (3) regarding the provisions in Article 4 paragraph (1) letter b through letter f and Article 11 for Sharia units in Insurance Companies can be conducted by Insurance Companies that have such Sharia units. (5) Adjustments to the provisions as referred to in paragraph (3) regarding the provisions in Article 4 paragraph (1) letter a number 2 for Sharia units in General Insurance Companies follow the equity value amounts for General Insurance Sharia Units.

CHAPTER VIII
CLOSING PROVISIONS

Article 33
This Financial Services Authority Regulation comes into force on the date of enactment.

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

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

Established in Jakarta on December 12, 2023
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,
MAHENDRA SIREGAR

Enacted in Jakarta on December 13, 2023
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2023 NUMBER 37/OJK ttd

EXPLANATION

OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 20 OF 2023
CONCERNING
INSURANCE PRODUCTS LINKED TO CREDIT OR
SHARIA FINANCING AND SURETYSHIP OR
SHARIA SURETYSHIP PRODUCTS

I. GENERAL

Financial Services Authority Regulation Number 23/POJK.05/2015 Concerning Insurance Products and Marketing of Insurance Products has governed every insurance product marketed by Insurance Companies and Sharia Insurance Companies. Products of insurance linked to Credit are one of the insurance business lines that provide coverage for the financial obligations of the Recipient of Credit. Suretyship is an expansion of the business scope of General Insurance Companies aimed at guaranteeing the financial obligations of the insured.

In its development, insurance products linked to Credit or Sharia Financing have become one of the products with the largest portfolio in General Insurance Companies. The underwriting process of risks conducted by Insurance Companies and Sharia Insurance Companies is important in maintaining the level of claim ratios and liquidity of Insurance Companies.

The high level of risk exposure assumed by products of insurance linked to Credit or Sharia Financing makes this product must be managed prudently. In the application of the principle of prudence, companies must consider the determination of premiums/contributions, risks assumed, and the period of time based on the ability of Insurance Companies and Sharia Insurance Companies, which are embodied in agreements or insurance policies. Considering the above conditions, the Financial Services Authority drafted a Financial Services Authority Regulation regarding insurance products linked to Credit or Sharia Financing and Suretyship or Sharia Suretyship products.

II. ARTICLE BY ARTICLE

Article 1

It is clear enough.

Article 2

Paragraph (1)

It is clear enough.

Paragraph (2)

It is clear enough.

Paragraph (3)

It is clear enough.

Paragraph (4)

It is clear enough.

Paragraph (5)

What is meant by "the risk of the Debtor's failure to fulfill its obligations to the Creditor" is the risk that arises when the Debtor is declared unable to fulfill its obligations by the Creditor in accordance with the Credit agreement. The risk of the Debtor's failure to fulfill its obligations to the Creditor includes, among others, the Debtor being declared to have uncollectible collectibility in accordance with the provisions of laws and regulations in the field of banking, financing services, microfinance institutions, or other providers of funds.

Paragraph (6)

It is clear enough.

Article 3

Paragraph (1)

It is clear enough.

Paragraph (2)

It is clear enough.

Paragraph (3)

It is clear enough.

Paragraph (4)

It is clear enough.

Paragraph (5)

Example:
General Insurance Company A collaborates with
Life Insurance Company B to market insurance products linked to Credit. General Insurance Company A violates minimum solvability regulations so that it is subject to sanctions prohibiting the marketing of insurance products linked to Credit. Under these conditions, General Insurance Company A and Life Insurance Company B are required to stop marketing the joint insurance product and continue the coverage that is running until the coverage period ends.

Paragraph (6)

Example:
Sharia General Insurance Company A collaborates with Sharia Life Insurance Company B to market insurance products linked to Sharia Financing. Sharia General Insurance Company A violates the provisions of minimum solvability so that it is subject to sanctions prohibiting the marketing of insurance products linked to Sharia Financing. Under these conditions, the Sharia General Insurance Company A and the Sharia Life Insurance Company B are required to stop marketing the joint insurance product and continue the coverage that is running until the coverage period ends.

Article 4

Paragraph (1)

Letter a

Number 1

Example 1:

• In 2024, the minimum equity requirement is
  Rp100,000,000,000.00 (one hundred billion rupiah);
• The minimum equity requirement that must
  be held by General Insurance Companies that will market Credit Insurance:
• Rp250,000,000,000.00 (two hundred fifty
  billion rupiah); or
• 150% (one hundred fifty percent) x
  Rp100,000,000,000.00 (one hundred fifty billion rupiah) = Rp150,000,000,000.00 (one hundred fifty billion rupiah);
• Because 150% (one hundred fifty percent) of
  minimum equity is smaller than
  Rp250,000,000,000.00 (two hundred fifty billion rupiah), then General Insurance Companies must hold equity of Rp250,000,000,000.00 (two hundred fifty billion rupiah).

Example 2:

• In 2027, the minimum equity requirement is
  Rp250,000,000,000.00 (two hundred fifty billion rupiah);

• The minimum equity requirement that must
  be held by General Insurance Companies that will market Credit Insurance:

• Rp250,000,000,000.00 (two hundred fifty
  billion rupiah); or

• 150% (one hundred fifty percent) x
  Rp250,000,000,000.00 (two hundred fifty billion rupiah) = Rp375,000,000,000.00 (three hundred seventy-five billion rupiah);

• Because 150% (one hundred fifty percent) of
  minimum equity is larger than
  Rp250,000,000,000.00 (two hundred fifty billion rupiah), then General Insurance Companies must hold equity of Rp375,000,000,000.00 (three hundred seventy- five billion rupiah).

Number 2

Example 1:

• In 2024, the minimum equity requirement for company funds is Rp50,000,000,000.00 (fifty
  billion rupiah);
• The minimum equity requirement after
  taking into account the needs for providing qardh to tabarru' funds that must be held by Sharia General Insurance Companies that will market Sharia Financing Insurance is:
• Rp100,000,000,000.00 (one hundred billion rupiah);
  or
• 150% (one hundred fifty percent) x
  Rp50,000,000,000.00 (fifty billion rupiah) = Rp75,000,000,000.00 (seventy- five billion rupiah);
• Because 150% (one hundred fifty percent) of
  minimum equity is smaller than
  Rp100,000,000,000.00 (one hundred billion rupiah), then Sharia General Insurance Companies must hold equity of Rp100,000,000,000.00 (one hundred billion rupiah).

Example 2:

• In 2027, the minimum equity requirement for company
  funds is Rp100,000,000,000.00
  (one hundred billion rupiah);
• The minimum equity requirement after
  taking into account the needs for providing qardh to tabarru' funds that must be held by Sharia General Insurance Companies that will market Sharia Financing Insurance is:
• Rp100,000,000,000.00 (one hundred billion rupiah);
  or
• 150% (one hundred fifty percent) x
  Rp100,000,000,000.00 (one hundred billion rupiah) = Rp150,000,000,000.00 (one hundred fifty billion rupiah);
• Because 150% (one hundred fifty percent) of
  minimum equity is larger than
  Rp100,000,000,000.00 (one hundred billion rupiah), then Sharia General Insurance Companies must hold equity of Rp150,000,000,000.00 (one hundred fifty billion rupiah).

Letter b

It is clear enough.

Letter c

It is clear enough.

Letter d

What is meant by "expert" is an individual who has specific qualifications and/or expertise and is appointed as an expert at the Company where they work.

Number 1

What is meant by "credit analyst" is a credit analyst for credit granted to business entities.

Number 2

Proof of having attended education or training can be done through attendance records and/or certificates of participation in related education or training activities.

Letter e

It is clear enough.

Letter f

It is clear enough.

Paragraph (2)

It is clear enough.

Article 5

Paragraph (1)

Risk sharing with Creditors includes products for Credit Insurance and Sharia Financing Insurance for trade transactions.

Paragraph (2)

It is clear enough.

Paragraph (3)

It is clear enough.

Paragraph (4)

It is clear enough.

Article 6

Example:

• The Company has equity valued at Rp100,000,000,000.00
  (one hundred billion rupiah);

• Debtor A obtains credit worth Rp10,000,000,000.00
  (ten billion rupiah) with cash collateral worth Rp2,000,000,000.00 (two billion rupiah);

• Maximum coverage/gross benefit 10% (ten
  percent) x Rp100,000,000,000.00 (one hundred billion rupiah) = Rp10,000,000,000.00 (ten billion rupiah);

• Gross coverage/gross benefit for Debtor A
  Rp10,000,000,000.00 (ten billion rupiah) -
  Rp2,000,000,000.00 (two billion rupiah) = Rp8,000,000,000.00 (eight billion rupiah);

• Because the gross coverage/gross benefit from the Company
  is larger than the gross coverage for Debtor A, then the Company is permitted to cover the risk of Debtor A;

• Maximum self-retention value 5% (five percent) x
  Rp100,000,000,000.00 (one hundred billion rupiah) = Rp5,000,000,000.00 (five billion rupiah).

Article 7

It is clear enough.

Article 8

It is clear enough.

Article 9

It is clear enough.

Article 10

Paragraph (1)

It is clear enough.

Paragraph (2)

It is clear enough.

Paragraph (3)

Letter a

What is meant by "death" is death due to accidents and natural death.

Letter b

It is clear enough.

Letter c

It is clear enough.

Article 11

It is clear enough.

Article 12

It is clear enough.

Article 13

It is clear enough.

Article 14

It is clear enough.

Article 15

Paragraph (1)

It is clear enough.

Paragraph (2)

It is clear enough.

Paragraph (3)

Letter a

Guaranteeing the procurement of goods/services is known as the term surety bond.

Letter b

Guaranteeing customs matters is known as the term customs bond.

Letter c

Guaranteeing excise matters is known as the term excise bond.

Letter d

It is clear enough.

Paragraph (4)

Letter a

Sharia guaranteeing of procurement of goods/services is known as the term Sharia surety bond.

Letter b

Sharia guaranteeing of customs matters is known as the term Sharia customs bond.

Letter c

Sharia guaranteeing of excise matters is known as the term Sharia excise bond.

Letter d

It is clear enough.

Paragraph (5)

It is clear enough.

Paragraph (6)

Letter a

Sharia General Insurance Companies acting as Surety in the kafalah bil ujrah contract are called kafil.

Letter b

It is clear enough.

Letter c

It is clear enough.

Article 16

It is clear enough.

Article 17

It is clear enough.

Article 18

It is clear enough.

Article 19

It is clear enough.

Article 20

It is clear enough.

Article 21

Paragraph (1)

It is clear enough.

Paragraph (2)

It is clear enough.

Paragraph (3)

Letter a

Number 1

Pure premium/contribution calculation based on risk and loss profile data of the relevant insurance type for at least the last 5 (five) years can use data from internal Company or external from third parties.

Number 2

It is clear enough.

Number 3

It is clear enough.

Letter b

What is meant by "other general costs" is costs that are commonly charged in the context of business acquisition, including marketing costs.

Paragraph (4)

It is clear enough.

Paragraph (5)

It is clear enough.

Paragraph (6)

It is clear enough.

Paragraph (7)

It is clear enough.

Paragraph (8)

It is clear enough.

Paragraph (9)

It is clear enough.

Article 22

Paragraph (1)

It is clear enough.

Paragraph (2)

It is clear enough.

Paragraph (3)

It is clear enough.

Paragraph (4)

Letter a

Sufficient information regarding the level of risk of the Insurance object for Credit Life Insurance and Sharia Financing Life Insurance products includes, among others, a statement letter from the Debtor that:

1. The Debtor is in good health;
2. is not currently being hospitalized; and
3. is not currently undergoing treatment.

Letter b

It is clear enough.

Article 23

It is clear enough.

Article 24

It is clear enough.

Article 25

It is clear enough.

Article 26

Paragraph (1)

Marketing channels refer to Financial Services Authority Regulation concerning insurance products and marketing of insurance products.

Paragraph (2)

It is clear enough.

Paragraph (3)

Letter a

Number 1

Letter a)

Example of charging premiums/contributions to the Debtor from the policyholder, namely customer A from Bank X, is charged premium costs for the credit agreement between customer A and Bank X.

Letter b)

Example of charging premiums/contributions to the fund provider in technology-based joint funding services, namely lender A, is charged premium costs for the credit disbursed to borrower B through platform X.

Number 2

It is clear enough.

Letter b

It is clear enough.

Paragraph (4)

It is clear enough.

Paragraph (5)

It is clear enough.

Paragraph (6)

Letter a

It is clear enough.

Letter b

Number 1

It is clear enough.

Number 2

It is clear enough.

Number 3

See explanation of Article 22 paragraph (4) letter a.

Number 4

It is clear enough.

Number 5

It is clear enough.

Number 6

It is clear enough.

Number 7

It is clear enough.

Number 8

It is clear enough.

Number 9

It is clear enough.

Number 10

It is clear enough.

Letter c

It is clear enough.

Letter d

It is clear enough.

Paragraph (7)

It is clear enough.

Article 27

Paragraph (1)

It is clear enough.

Paragraph (2)

What is meant by "study" is experience study.

Paragraph (3)

It is clear enough.

Article 28

It is clear enough.

Article 29

It is clear enough.

Article 30

It is clear enough.

Article 31

It is clear enough.

Article 32

Example of government programs includes, among others, the People's Business Credit (KUR) program and credit in the context of accelerating National Economic Recovery (PEN).

Paragraph (1)

It is clear enough.

Paragraph (2)

What is meant by "Companies and Sharia units in Insurance Companies that have marketed products of Insurance linked to Credit or Sharia Financing and Suretyship products" are Companies and Sharia units in Insurance Companies that have obtained licenses to market Insurance Products linked to Credit or Sharia Financing and Suretyship products.

Paragraph (3)

It is clear enough.

Paragraph (4)

It is clear enough.

Paragraph (5)

It is clear enough.

Article 33

It is clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 59/OJK