FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 21 /POJK.04/2016

REGARDING

REGISTRATION OF GOVERNMENT APPRAISERS FOR ASSET REVALUATION PURPOSES

FOR STATE-OWNED ENTERPRISES OR LOCAL GOVERNMENT-OWNED ENTERPRISES

CONDUCTING PUBLIC OFFERINGS IN THE CAPITAL MARKET

BY THE GRACE OF GOD THE ALMIGHTY,

THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to support the Government's economic policy regarding the revaluation of assets of State-Owned Enterprises and Local Government-Owned Enterprises, the determination of revaluation results can be carried out by Government Appraisers within the Directorate General of State Assets, Ministry of Finance of the Republic of Indonesia; b. that the Appraiser Profession that can provide appraisal services for State-Owned Enterprises and Local Government-Owned Enterprises that have conducted Public Offerings in the Capital Market must first be registered with the Financial Services Authority;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation regarding the Registration of Government Appraisers for Asset Revaluation Purposes for State-Owned Enterprises and Local Government-Owned Enterprises Conducting Public Offerings in the Capital Market;

THE FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

COPY

Recalling:

1. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
3. Government Regulation Number 27 of 2014 concerning the Management of State/Local Assets (State Gazette of the Republic of Indonesia Year 2014 Number 92, Supplement to the State Gazette of the Republic of Indonesia Number 5533);
4. Minister of Finance Regulation Number 191/PMK.010/2015 as amended by Minister of Finance Regulation Number 233/PMK.03/2015 concerning the Revaluation of Fixed Assets for Tax Purposes for Applications Submitted in 2015 and 2016 (State Newspaper of the Republic of Indonesia Year 2015 Number 1916);

DECIDING:

To Establish: FINANCIAL SERVICES AUTHORITY REGULATION REGARDING REGISTRATION OF GOVERNMENT APPRAISERS FOR ASSET REVALUATION PURPOSES FOR STATE-OWNED ENTERPRISES OR LOCAL GOVERNMENT-OWNED ENTERPRISES CONDUCTING PUBLIC OFFERINGS IN THE CAPITAL MARKET.

CHAPTER I

GENERAL PROVISIONS

Article 1

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

1. Financial Services Authority, hereinafter abbreviated as OJK, is the Financial Services Authority as referred to in the Republic of Indonesia Law Number 21 of 2011 concerning the Financial Services Authority.
2. Government Appraiser is a Civil Servant Appraiser within the DJKN environment appointed by the Minister of Finance's authority and given tasks, authorities, and responsibilities to conduct Appraisals, including over their appraisal results independently.
3. Capital Market Government Appraiser is a Government Appraiser registered with OJK.
4. Appraisal is a process of activities conducted by Capital Market Government Appraisers to provide a value opinion based on objective and relevant data and/or facts using specific methods or techniques on specific objects at the appraisal date.
5. Indonesian Government Appraisers Association, hereinafter abbreviated as IPPI, is the professional organization of Government Appraisers.
6. Directorate General of State Assets, hereinafter referred to as DJKN, is an echelon I unit within the Ministry of Finance that has the task of formulating and implementing policies and technical standardization in the field of state assets, state receivables, and auctions.
7. Professional Education is a basic education for Capital Market Government Appraisers with appraisal material and/or regulations in the field of Capital Market and other financial services, organized by the Ministry of Finance, OJK and/or other parties approved or recognized by OJK.
8. Advanced Professional Education, hereinafter abbreviated as PPL, is advanced education for Capital Market Government Appraisers with appraisal material and/or regulations in the field of Capital Market and other financial services, organized by the Ministry of Finance, OJK and/or other parties approved or recognized by OJK.
9. Public Offering is the activity of offering Securities conducted by an Issuer to sell Securities to the public based on procedures regulated in the Capital Market Law.
10. Periodic Report of Capital Market Government Appraiser Activities is a report containing information about the activities of Government Appraisers in the context of asset revaluation for State-Owned Enterprises or Local Government-Owned Enterprises conducting Public Offerings in the Capital Market during 1 (one) year.

CHAPTER II

REGISTRATION OF GOVERNMENT APPRAISERS

First Section

Registration Requirements for Government Appraisers

Article 2

Government Appraisers conducting Appraisal activities in the Capital Market field must first be registered with OJK and meet the requirements as regulated in this Financial Services Authority Regulation.

Article 3

The registration requirements for Government Appraisers as referred to in Article 2 are as follows:
a. having the status of a Government Appraiser; b. never having committed disgraceful acts and/or being punished for proven criminal offenses in the financial services field; and
c. having become a member of IPPI.

Second Section

Registration Documents for Government Appraisers

Article 4

The application for registration of Government Appraisers as a Capital Market Supporting Profession submitted to OJK is drafted using the format of the Application for Registration of Government Appraisers as Capital Market Supporting Professions as contained in the Appendix which is an inseparable part of this Financial Services Authority Regulation.

Article 5

The registration application as referred to in Article 4, is accompanied by the following documents:
a. photocopy of the decision letter from the Minister of Finance regarding appointment as a Government Appraiser; b. recommendation letter from DJKN stating that the applicant is worthy of consideration to conduct activities as a Government Appraiser in the Capital Market;
c. photocopy of the Taxpayer Identification Number (NPWP) in the name of the relevant Government Appraiser;
d. photocopy of the still-valid Identity Card (KTP); e. latest color passport photo size 4x6 cm with a red background, 1 (one) sheet; f. photocopy of proof of membership in IPPI; and g. a statement letter with sufficient stamp duty drafted using the format of the Government Appraiser Statement Letter as contained in the Appendix which is an inseparable part of this Financial Services Authority Regulation, stating that the Government Appraiser:

1. never committed disgraceful acts and/or was punished for proven criminal offenses in the financial services field;
2. is willing to abide by the professional code of ethics drafted by IPPI;
3. is willing to act independently, objectively, and professionally in conducting Appraisals; and
4. is willing to comply with summons to undergo examination and/or investigation by OJK regarding compliance with applicable regulations.

Third Section

Review of Government Appraiser Registration Applications

Article 6

In the context of registering Government Appraisers conducting activities in the Capital Market, OJK may request additional documents to support the fulfillment of requirements as referred to in Article 5.

Article 7

In the event that the application as referred to in Article 4 does not meet the requirements, then within a maximum of 45 (forty-five) days since the receipt of the application, OJK is required to provide a notification letter to the applicant stating that:
a. the application does not yet meet the requirements; or b. the application is rejected.

Article 8

Applicants who do not complete the missing required documents and/or are not accepted by OJK within 45 (forty-five) days after the date of the notification letter as referred to in Article 7 letter a, are deemed to have cancelled the submitted Government Appraiser registration application, and the applicant may submit a new application.

Article 9

In the event that the registration application as referred to in Article 4 has met the requirements, then within a maximum of 45 (forty-five) days since the receipt of the complete application, OJK establishes the Capital Market Supporting Profession Registration Certificate for the applicant.

Article 10

Documents submitted to OJK become the property of OJK.

CHAPTER III

SCOPE OF APPRAISAL

Article 11

(1) The scope of Appraisal activities conducted by Capital Market Government Appraisers covers property appraisal for the purpose of fixed asset revaluation of State-Owned Enterprises or Local Government-Owned Enterprises. (2) State-Owned Enterprises or Local Government-Owned Enterprises as referred to in paragraph (1) are limited only to State-Owned Enterprises or Local Government-Owned Enterprises that have conducted Public Offerings in the Capital Market field.

CHAPTER IV

RESTRICTIONS ON APPRAISAL ASSIGNMENTS

Article 12

(1) Providing Appraisal services to clients of State-Owned Enterprises or Local Government-Owned Enterprises that have conducted Public Offerings in the Capital Market field can only be done by a Capital Market Government Appraiser for a maximum of 5 (five) consecutive years calculated from the date of the Appraisal Report on the first Appraisal assignment. (2) A Capital Market Government Appraiser can accept Appraisal assignments again from the client of State-Owned Enterprises or Local Government-Owned Enterprises as referred to in paragraph (1) after 1 (one) year of not conducting Appraisal assignments for that State-Owned Enterprise or Local Government-Owned Enterprise, calculated from the date of the Appraisal Report on the last Appraisal assignment.

CHAPTER V

OBLIGATIONS AND PROHIBITIONS OF CAPITAL MARKET GOVERNMENT APPRAISERS

First Section

Obligations of Capital Market Government Appraisers

Article 13

(1) Capital Market Government Appraisers are required to:
a. abide by the professional code of ethics for Capital Market Government Appraisers drafted by IPPI; b. act independently, objectively, and professionally in conducting Appraisals;
c. conduct Appraisals in accordance with the scope of Appraisal activities as contained in the Capital Market Supporting Profession Registration Certificate;
d. attend PPL for at least 5 (five) hours of training every year; e. report their participation in PPL as referred to in letter d to OJK accompanied by supporting documents, periodically at the latest on January 15 of the following year; f. submit to OJK the Periodic Report of Capital Market Government Appraiser Activities at the latest on January 15 of the following year, drafted using the format of the Periodic Report of Capital Market Government Appraiser Activities as contained in the Appendix which is an inseparable part of this Financial Services Authority Regulation; g. report to OJK any changes in data and information of Capital Market Government Appraisers accompanied by supporting documents; and h. comply with summons to undergo examination and/or investigation by OJK regarding compliance with applicable regulations. (2) In the event that January 15 as referred to in paragraph (1) letters e and f falls on a holiday, the report is submitted at the latest on the next working day. (3) The Periodic Report of Capital Market Government Appraiser Activities as referred to in paragraph (1) letter f contains information on activities conducted by Capital Market Government Appraisers calculated from January 1 to December 31 or since registration with OJK if registered for less than 1 (one) year. (4) The Periodic Report of Capital Market Government Appraiser Activities as referred to in paragraph (1) letter f is required to be accompanied by a report in digital format. (5) The PPL participation report as referred to in paragraph (1) letter e and the Periodic Report of Capital Market Government Appraiser Activities as referred to in paragraph (1) letter f, can be submitted by several Capital Market Government Appraisers simultaneously in 1 (one) cover letter.

Article 14

The obligations as referred to in Article 13 paragraph (1) letter d begin to apply for the following year since the Capital Market Government Appraiser obtains the Registration Certificate from OJK.

Article 15

If in a period of 1 (one) year Professional Education and/or PPL is not held, then OJK may establish other provisions.

Second Section

Prohibitions for Capital Market Government Appraisers

Article 16

In the event that a Capital Market Government Appraiser holds a concurrent position at a party that has obtained a license, and/or whose Registration Statement has become effective, then the Capital Market Government Appraiser is prohibited from providing Appraisal services that can cause conflicts of interest with the party where the Capital Market Government Appraiser holds a concurrent position.

Article 17

Capital Market Government Appraisers cannot conduct activities in the Capital Market in the event:
a. dismissed; or b. discharged, as Government Appraisers by DJKN.

CHAPTER VI

SANCTION PROVISIONS

Article 18

(1) Without prejudice to criminal provisions in the Capital Market field, OJK has the authority to impose administrative sanctions on Capital Market Government Appraisers who violate the provisions of this Financial Services Authority Regulation, in the form of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. cancellation of registration; and
d. suspension of the Registration Certificate.
(2) Administrative sanctions as referred to in paragraph (1) letters b, c, and d, can be imposed with or without preceding the imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of a fine as referred to in paragraph (1) letter b can be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (1) letters c and d.

Article 19

In addition to administrative sanctions as referred to in Article 18 paragraph (1), OJK can take certain actions against Government Appraisers who violate the provisions of this Financial Services Authority Regulation.

Article 20

OJK can announce the imposition of administrative sanctions as referred to in Article 18 paragraph (1) and certain actions as referred to in Article 19 to the public.

CHAPTER VII

CLOSING PROVISIONS

Article 21

This Financial Services Authority Regulation begins to apply on the date of its promulgation.

In order for everyone to know it, order the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on April 12, 2016

CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY,

signed

MULIAMAN D. HADAD

Promulgated in Jakarta on April 18, 2016

MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,

signed

YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 67

Copy matches the original
Director of Law 1
Department of Law

signed

Yuliana

EXPLANATION

OF

FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 21 /POJK.04/2016

REGARDING

REGISTRATION OF GOVERNMENT APPRAISERS FOR ASSET REVALUATION PURPOSES

FOR STATE-OWNED ENTERPRISES OR LOCAL GOVERNMENT-OWNED ENTERPRISES

CONDUCTING PUBLIC OFFERINGS IN THE CAPITAL MARKET

I. GENERAL

One of the Government's policies in encouraging the domestic economy is by providing relief or incentives in the tax sector. Tax incentives are given for asset revaluation, especially property assets, conducted by State-Owned Enterprises, Local Government-Owned Enterprises, or private companies. With these tax incentives, it is hoped that State-Owned Enterprises, Local Government-Owned Enterprises, and private companies will conduct asset revaluations so that company asset values can increase.

In order to support the plans of State-Owned Enterprises and Local Government-Owned Enterprises to conduct asset revaluations, the Government through the Ministry of Finance established Minister of Finance Regulation Number 191/PMK.010/2015 as amended by Minister of Finance Regulation Number 233/PMK.03/2015 concerning the Revaluation of Fixed Assets for Tax Purposes for Applications Submitted in 2015 and 2016, to grant authority to Government Appraisers to conduct appraisals on the revaluation of assets of State-Owned Enterprises and Local Government-Owned Enterprises.

Based on Article 64 of Law Number 8 of 1995 Concerning the Capital Market, the Appraiser Profession that can provide services to companies that have conducted Public Offerings in the Capital Market (Issuers) must first be registered with the Financial Services Authority. This rule also applies to appraisers who will provide appraisal services to State-Owned Enterprises and Local Government-Owned Enterprises that have status as Issuers in the Capital Market field.

The substance of regulations in the Capital Market field by Bapepam-LK regarding registration, independence, and periodic reports for Appraisers conducting activities in the Capital Market field is not appropriate when applied to Government Appraisers who will conduct appraisals on the revaluation of assets of State-Owned Enterprises and Local Government-Owned Enterprises with Issuer status. With this consideration, this Financial Services Authority Regulation is expected to increase the effectiveness of supervision over the aforementioned Government Appraisers.

II. ARTICLE BY ARTICLE

Article 1

Quite clear.

Article 2

Quite clear.

Article 3

Quite clear.

Article 4

Quite clear.

Article 5

Quite clear.

Article 6

Quite clear.

Article 7

Quite clear.

Article 8

Quite clear.

Article 9

Quite clear.

Article 10

Quite clear.

Article 11

Paragraph (1)
Property appraisal as referred to includes, among others:
a. real property appraisal; b. personal property appraisal;
c. construction/development project appraisal;
d. property development appraisal; e. plantation asset appraisal; f. fishery asset appraisal; g. forestry asset appraisal; h. mining asset appraisal; and/or
i. other property appraisals.

Paragraph (2)
Quite clear.

Article 12

Quite clear.

Article 13

Quite clear.

Article 14

Quite clear.

Article 15

Quite clear.

Article 16

Quite clear.

Article 17

Quite clear.

Article 18

Quite clear.

Article 19

Quite clear.

Article 20

Quite clear.

Article 21

Quite clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5869

FINANCIAL SERVICES AUTHORITY

REPUBLIC OF INDONESIA

APPENDIX

FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 21 /POJK.04/2016

REGARDING

REGISTRATION OF GOVERNMENT APPRAISERS FOR ASSET REVALUATION PURPOSES

FOR STATE-OWNED ENTERPRISES OR LOCAL GOVERNMENT-OWNED ENTERPRISES

CONDUCTING PUBLIC OFFERINGS IN THE CAPITAL MARKET

APPLICATION FOR REGISTRATION OF GOVERNMENT APPRAISERS AS CAPITAL MARKET SUPPORTING PROFESSIONS

Number : ………………… Place), (Date, Month, Year)
Attachment : …………………
Subject : Application for Registration of Government Appraisers As Capital Market Supporting Professions

TO

The Executive Head
Capital Market Supervisor
Up. Director of Institutions and
Capital Market Supporting Professions
Financial Services Authority in Jakarta

Hereby we submit an application for Registration of Government Appraisers as Capital Market Supporting Professions. As consideration material, we hereby submit the following data:

1. Full Name : ………………………………………
2. Place and Date of Birth : ………………………………………
3. Residential Address : ………………………………………
   ………………………………………
   (street name & number)
   ………………………………………
   (city & postal code)
4. Telephone Number & Fax : ………………………………………
5. E-mail Address : ………………………………………
6. Identity Card Number : ………………………………………
7. Taxpayer Identification Number : ………………………………………
8. IPPI Membership Number and Date : ………………………………………
9. Government Appraiser License Number and Date
   from the Minister of Finance : ………………………………………
10. University Degree
    a. Faculty/Major : ……………………………………… b. University : ………………………………………
    c. Degree Number : ………………………………………
    d. Degree Date : ………………………………………
11. Appraisal Education and Training Certificate
    (minimum 200 hours of training)

No	Education Name	Organizer	Certificate Number	Certificate Date
1.
2.
3.

12. Recommendation Letter
    a. Recommendation Letter Number : ……………………………………… b. Recommendation Letter Date : ………………………………………

To complete this application, we hereby attach the following documents:
a. photocopy of the decision letter from the Minister of Finance regarding appointment as a Government Appraiser; b. recommendation letter from DJKN stating that the applicant is worthy of consideration to conduct activities as a Government Appraiser in the Capital Market;
c. photocopy of the Taxpayer Identification Number (NPWP) in the name of the relevant Government Appraiser;
d. photocopy of the still-valid Identity Card (KTP); e. latest color passport photo size 4x6 cm with a red background, 1 (one) sheet; f. photocopy of proof of membership in IPPI; and g. a statement letter with sufficient stamp duty stating that the Government Appraiser:

1. never committed disgraceful acts and/or was punished for proven criminal offenses in the financial services field;
2. is willing to abide by the professional code of ethics drafted by IPPI;
3. is willing to act independently, objectively, and professionally in conducting Appraisals; and
4. is willing to comply with summons to undergo examination and/or investigation by OJK regarding compliance with applicable regulations.

Thus we submit this application and thank you for your attention.

(Place), (Date, Month, Year)

Applicant,

……………………………………..
(Clear Name and Signature) stamp

GOVERNMENT APPRAISER STATEMENT LETTER

I, the undersigned:

Name : ..................................................
Residential Address : ..................................................
Position During Appraisal : ..................................................
Identity Card Number : ..................................................
Telephone Number : ..................................................
E-mail : ..................................................

Hereby state that I:
a. have/have not*) committed disgraceful acts and/or been punished for proven criminal offenses in the financial services field; b. am willing to abide by the professional code of ethics drafted by IPPI;
c. am willing to act independently, objectively, and professionally in conducting Appraisals; and
d. am willing to comply with summons to undergo examination and/or investigation by OJK regarding compliance with applicable regulations.

Thus this statement is made truthfully so that it can be used as appropriate.

(Place), (Date, Month, Year)

Applicant,

……………………………………..
(Clear Name and Signature)

Note:
*)cross out what is not needed

stamp

PERIODIC REPORT OF GOVERNMENT VALUER ACTIVITIES FOR CAPITAL MARKET PURPOSES
Period 1 January to 31 December 20.....
Government Valuer Name: ....................................
STTD Number: ....................................

No.	Name of SOE/Local Government-Owned Enterprise	Type of Valuation Object	Valuation Date	Report Date	Status at Time of Valuation	Valuation Team	Name	Position
1.
2.
3.

I hereby declare that the data and information I report in the Periodic Report of Government Valuer Activities for Capital Market Purposes for the period from 1 January 20..... to 31 December 20..... are true and can be accounted for.

If it is later found that the data and information I reported and this statement are not true, I am willing to be held accountable in accordance with applicable laws and regulations.

................, ….. - ………. - 20…..
Government Valuer for Capital Market,
(signature and office stamp)
(Clear Name)

Established in Jakarta on 12 April 2016
CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY, ttd
MULIAMAN D. HADAD

Copy matches the original
Director of Law 1
Legal Department ttd
Yuliana