Financial Services Authority Regulation Number 23 of 2023 Concerning Business Licensing and Institutional Aspects of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 23 OF 2023
CONCERNING
BUSINESS LICENSING AND INSTITUTIONAL ASPECTS OF INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES

BY THE GRACE OF GOD THE ALMIGHTY,
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering: that in order to implement Article 8 paragraph (4), Article 10 paragraph (4), Article 13 paragraph (3), Article 14 paragraph (4), Article 16 paragraph (3), Article 17 paragraph (3), Article 20 paragraph (5), Article 27 paragraph (8), Article 40 paragraph (6), Article 41 paragraph (4), Article 69 paragraph (2), Article 85 paragraph (2), and Article 88 paragraph (2) of Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, and Article 83 paragraph (6) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, to strengthen the capacity of the insurance industry, as well as to adjust the regulations of Financial Services Authority Regulation Number 67/POJK.05/2016 concerning Business Licensing and Institutional Aspects of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies with the development of the insurance industry in Indonesia, it is necessary to establish a Financial Services Authority Regulation concerning Business Licensing and Institutional Aspects of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies;

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);

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);
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);
Government Regulation Number 14 of 2018 concerning Foreign Ownership in Insurance Companies (State Gazette of the Republic of Indonesia Year 2018 Number 66, Supplement to the State Gazette of the Republic of Indonesia Number 6200) as amended by Government Regulation Number 3 of 2020 concerning Amendments to Government Regulation Number 14 of 2018 concerning Foreign Ownership in Insurance Companies (State Gazette of the Republic of Indonesia Year 2020 Number 7, Supplement to the State Gazette of the Republic of Indonesia Number 6456);

DECIDING:

To Establish: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING BUSINESS LICENSING AND INSTITUTIONAL ASPECTS OF INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES.

CHAPTER I
GENERAL PROVISIONS

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

Insurance is an agreement between two parties, namely the insurance company and the policyholder, which serves as the basis for the insurance company to receive premiums 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 survival of the insured with benefits whose amount has been determined and/or based on the results of fund management.
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 survival of participants with benefits whose amount has been determined and/or based on the results of fund management.
Sharia Principles are Islamic legal principles in insurance activities based on fatwas issued by institutions having authority in issuing fatwas in the Sharia field.
Insurance Business is all businesses concerning insurance services or risk management, risk reinsurance, marketing and distribution of insurance products or Sharia insurance products, insurance consultation and brokerage, Sharia insurance consultation and brokerage, reinsurance, or Sharia reinsurance, or insurance loss assessment or Sharia insurance loss assessment.
General Insurance Business is insurance risk 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.
Life Insurance Business is business that organizes risk management services that provide payments to the policyholder, insured, or other entitled parties in the event of the insured's death or continued survival, 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.
Reinsurance Business is insurance reinsurance services against risks faced by insurance companies, guarantee companies, or other reinsurance companies.
Sharia General Insurance Business is 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.
Sharia Life Insurance Business is risk management business based on Sharia Principles to assist and protect each other by providing payments based on the death or survival 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.
Sharia Reinsurance Business is risk management business based on Sharia Principles against risks faced by Sharia insurance companies, Sharia guarantee companies, or other Sharia reinsurance companies.
Company means general insurance company, life insurance company, reinsurance company, Sharia general insurance company, Sharia life insurance company, and Sharia reinsurance company.
General Insurance Company is a company that carries out General Insurance Business.
Life Insurance Company is a company that carries out Life Insurance Business.
Insurance Company means General Insurance Company and Life Insurance Company.
Sharia General Insurance Company is a company that carries out Sharia General Insurance Business.
Sharia Life Insurance Company is a company that carries out Sharia Life Insurance Business.
Sharia Insurance Company means Sharia General Insurance Company and Sharia Life Insurance Company.
Reinsurance Company is a company that carries out Reinsurance Business.
Sharia Reinsurance Company is a company that carries out Sharia Reinsurance Business.
Sharia Unit is a work unit at the head office of an Insurance Company or Reinsurance Company that functions as the parent office of offices outside the head office that conduct business based on Sharia Principles.
Party means an individual or business entity, whether in the form of a legal entity or not.
Guarantee Fund is the assets of an Insurance Company, Sharia Insurance Company, Reinsurance Company, or Sharia Reinsurance Company that serve as the final guarantee in protecting the interests of policyholders, insured, or participants, in the event that the Insurance Company, Sharia Insurance Company, Reinsurance Company, and Sharia Reinsurance Company are liquidated.
Paid-up Capital is paid-up capital for companies in the form of limited liability companies, or principal savings and mandatory savings for companies in the form of cooperative legal entities.
Equity is equity based on applicable financial accounting standards in Indonesia.
Insurance Company Business Group which is hereinafter referred to as KUPA is a Company that is in one group due to ownership and/or Control linkages consisting of 2 (two) or more Companies.
Parent Company is a legal entity that consolidates and directly controls all activities of the KUPA.
Board of Directors is the Company organ that has the authority and is fully responsible for the management of the Company for the benefit of the Company, in accordance with the purpose and objectives of the Company and represents the Company, both inside and outside the court, in accordance with the articles of association for Companies in the form of limited liability companies, or equivalent to the Board of Directors for Companies in the form of cooperative legal entities or joint ventures.
Board of Commissioners is the Company organ tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors for Companies in the form of limited liability companies, or equivalent to the Board of Commissioners for Companies in the form of cooperative legal entities or joint ventures.
General Meeting of Shareholders which is hereinafter abbreviated as GMS is the Company organ that has authority not given to the Board of Directors or Board of Commissioners within the limits determined in legislation concerning limited liability companies and/or the articles of association for Companies in the form of limited liability companies, or equivalent to the GMS for Companies in the form of cooperative legal entities or joint ventures.
Control is an action aimed at influencing the management and/or policies of the Company in any way, whether directly or indirectly.
Controller is a Party that directly or indirectly has the ability to influence actions and/or determine the Board of Directors, Board of Commissioners, or equivalents thereof.
Controlling Shareholder which is hereinafter abbreviated as CSP is a Party that directly owns shares or capital of the Company amounting to 25% (twenty-five percent) or more of the issued shares and has voting rights, or a Party that directly owns shares or capital of the Company less than 25% (twenty-five percent) of the issued shares and has voting rights but can be proven to have exercised Control.
Sharia Supervisory Board which is hereinafter abbreviated as SSB is a board that has the task and function of supervision and providing advice to the Board of Directors regarding the implementation of Company activities to ensure compliance with Sharia Principles.
Executive Official is an official who is directly responsible to the Board of Directors or has significant influence on the policies and/or operations of the Company.
Professional Certification Institution which is hereinafter abbreviated as PCI is an institution that carries out professional certification activities that have met the requirements and obtained a license from an authority or institution granted the authority to carry out work competency certification in accordance with applicable legislation.
Expert is an individual who has specific qualifications and/or expertise who is appointed and works full-time as an Expert at the Company where they work.
Insurance Agent is a person who works alone or works for a business entity, who acts on behalf of and in the name of an Insurance Company or Sharia Insurance Company and meets the requirements to represent the Insurance Company or Sharia Insurance Company in marketing Insurance products or Sharia Insurance products.
Association is an association of Companies that has obtained written approval from the Financial Services Authority in accordance with the activities or types of business of each Company.
Foreign Legal Entity is an entity registered or listed with the authorities of another country as a legal entity.
Foreign Ownership is the ownership of foreign citizens and/or Foreign Legal Entities in a Company.
Merger is a legal act performed by 2 (two) or more Companies with similar business fields to merge by establishing 1 (one) new Company that legally acquires the assets, liabilities, and Equity of the merging Companies and the legal entity status of the merging Companies ends by law.
Consolidation is a legal act performed by 1 (one) or more Companies to merge with an existing Company with a similar business field, resulting in the assets, liabilities, and Equity of the consolidating Companies legally transferring to the Company receiving the consolidation and the legal entity status of the consolidating Companies subsequently ends by law.
Separation of Sharia Unit is a legal act performed by an Insurance Company or Reinsurance Company to separate the Sharia Unit, resulting in some assets, liabilities, and Equity of the Insurance Company or Reinsurance Company legally transferring to a Sharia Insurance Company or Sharia Reinsurance Company.
Takeover is a legal act performed by a legal entity or individual to take over the shares of a Company, resulting in the transfer of Control.
Insurance Company Group based on Equity which is hereinafter referred to as KPPE is a grouping of Insurance Companies and Reinsurance Companies based on the Equity owned.
Company Actuary is an individual who has obtained certification from an association under which the actuarial field falls, who is appointed and works full-time as an actuary at the Company where they work.

CHAPTER II
LEGAL ENTITY FORM, OWNERSHIP, COMPANY NAME, CAPITALIZATION AND GUARANTEE FUND

First Section
Legal Entity Form

Article 2
The legal entity form of Companies consists of:
a. limited liability company; b. cooperative; or
c. joint venture that existed at the time Law Number 40 of 2014 concerning Insurance was enacted.

Second Section
Ownership

Article 3
(1) Companies may only be owned by:
a. Indonesian citizens and/or Indonesian legal entities that are directly or indirectly fully owned by Indonesian citizens; or b. Indonesian citizens and/or Indonesian legal entities as referred to in letter a, together with foreign citizens or Foreign Legal Entities which must be Companies with similar business activities or parent companies where one of their subsidiaries operates in a similar Insurance Business field.

(2) Foreign Ownership in Companies by foreign citizens or Foreign Legal Entities as referred to in paragraph (1) letter b is implemented in accordance with regulations as regulated in Government Regulations concerning foreign ownership in insurance companies and provisions in this Financial Services Authority Regulation.

Article 4
(1) Foreign Ownership in Companies by foreign citizens as referred to in Article 3 paragraph (1) letter b can only be done through transactions on the stock exchange.

(2) Foreign Ownership in Companies by Foreign Legal Entities as referred to in Article 3 paragraph (1) letter b is carried out through:
a. direct investment in the Company; b. transactions on the stock exchange for the Company; and/or
c. investment in an Indonesian legal entity that owns the Company through:

direct investment; or
transactions on the stock exchange.

Article 5
(1) Foreign Ownership in Companies by Foreign Legal Entities through direct investment in the Company as referred to in Article 4 paragraph (2) letter a and direct investment in an Indonesian legal entity that owns the Company as referred to in Article 4 paragraph (2) letter c number 1, must meet the criteria:
a. being a Company with similar business activities or being a parent company where one of its subsidiaries operates in a similar Insurance Business field; b. having Equity of at least 5 (five) times the amount of direct investment in the Company at the time of establishment and at the time of changes in Company ownership; and
c. having a rating of at least A or equivalent from an internationally recognized rating agency.

(2) For Foreign Legal Entities that meet the criteria as referred to in paragraph (1) letter a, the rating criteria requirement as referred to in paragraph (1) letter c can be met with a rating from one of its subsidiaries operating in a similar Insurance Business field.

(3) The obligation to meet the criteria for Foreign Legal Entities as referred to in paragraph (1) applies to Foreign Ownership through direct investment in an Indonesian legal entity that owns the Company as referred to in Article 4 paragraph (2) letter c number 1 with the requirement of having Control over the Company directly or indirectly with a share ownership percentage greater than or equal to 25% (twenty-five percent).

(4) The obligation to meet the criteria for Foreign Legal Entities that are shareholders of the Company as referred to in paragraph (1) does not apply to share ownership of the Company by Foreign Legal Entities through:
a. transactions on the stock exchange as referred to in Article 4 paragraph (2) letter b; and b. transactions on the stock exchange for an Indonesian legal entity that owns the Company as referred to in Article 4 paragraph (2) letter c number 2.

Article 6
(1) Companies are required to identify and report:
a. Foreign Ownership in the Company by Foreign Legal Entities as referred to in Article 4 paragraph (2); b. Foreign Ownership in the Company by foreign citizens indirectly; and
c. the fulfillment of criteria for Foreign Legal Entities as referred to in Article 5,
to the Financial Services Authority.

(2) The calculation of share ownership by Foreign Legal Entities as referred to in paragraph (1) letter a is carried out:
a. directly based on the calculation of the cumulative percentage of share ownership by all Foreign Legal Entities recorded in the Company's latest shareholder list; and b. indirectly:

calculation of Foreign Ownership from Company shareholders in the form of Indonesian closed legal entities based on the calculation of the cumulative percentage of share ownership by all Foreign Legal Entities up to the ultimate shareholders; and/or
calculation of Foreign Ownership from Company shareholders in the form of Indonesian open legal entities based on the calculation of the cumulative percentage of share ownership by all Foreign Legal Entities listed in the ownership structure found on the stock exchange as regulated in capital market legislation.

Article 7
Companies are required to report the results of Foreign Ownership identification and the fulfillment of criteria for Foreign Legal Entities as referred to in Article 6:
a. every month reported as part of the Company's periodic report in accordance with regulations concerning the form and composition of the Company's periodic report; and b. when the Company carries out corporate actions that cause changes in ownership.

Article 8
(1) Shareholders of Companies in the form of Indonesian legal entities must have Equity of at least 1 (one) time the amount of direct investment.

(2) The provisions on the amount of direct investment as referred to in paragraph (1) do not apply to Company shareholders that are financial service institutions under the supervision of the Financial Services Authority.

(3) For financial service institutions under the supervision of the Financial Services Authority, the amount of direct investment in the Company must be carried out in accordance with applicable legislation regulating investment and/or participation.

(4) The amount of direct investment as referred to in paragraph (1) must be fulfilled when the respective legal entity:
a. deposits capital at the time of Company establishment; b. makes direct investment as a new Company shareholder after the Company obtains a business license; and/or
c. increases investment in the Company originating from cash deposits and conversion/transfer of loans.

Article 9
(1) CSPs in the form of legal entities must have and demonstrate good financial performance for at least 2 (two) years before making capital investment in the Company.

(2) The provisions as referred to in paragraph (1) are exempted for:
a. CSPs that are legal entities established for the longest 2 (two) years and are the result of corporate actions in the form of Consolidation, Merger, or separation including Separation of Sharia Units; b. CSPs that are Indonesian legal entities established with capital investment from the central government and/or local governments; and/or
c. CSPs that will make capital investment in the Company in the context of fulfilling action plans in accordance with Financial Services Authority Regulations concerning the determination of status and follow-up of supervision of non-bank financial service institutions.

Article 10
(1) The funding sources used by shareholders for participation and/or capital increase to the Company are prohibited from originating from:
a. loans; and b. money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes.
(2) The provisions as referred to in paragraph (1) letter a do not apply in the event that the Company's shareholder is:
a. the central government; b. the regional government; and/or
c. a legal entity controlled by the central government or regional government.

Part Three
Company Name

Article 11
(1) The Company must use a Company name that starts with the form of the legal entity and contains the word:
a. Insurance, insurance, or a word characterizing the activities of the Insurance Company; b. Reinsurance, reinsurance, or a word characterizing the activities of the Reinsurance Company;
c. Sharia Insurance, sharia insurance, or a word characterizing the activities of the Sharia Insurance Company; or
d. Sharia Reinsurance, sharia reinsurance, or a word characterizing the activities of the Sharia Reinsurance Company.
(2) The use of the Company name as referred to in paragraph (1) for Companies in the form of limited liability companies is carried out in accordance with the provisions of legislation regarding limited liability companies. (3) The use of the Company name as referred to in paragraph (1) for Companies in the form of cooperative legal entities is carried out in accordance with the provisions of legislation regarding cooperatives and the approval of cooperatives. (4) The use of the Company name as referred to in paragraph (1) in the conduct of business must refer to the Company name, the form of the Company's legal entity, and the business activities contained in the Company's Articles of Association that have been approved by the competent authority. (5) The Company name must be clearly stated on the office building, advertisements, Company letterheads, and/or other Company documents. (6) The Financial Services Authority is authorized to issue written instructions to the Company to change the Company name if the Company name does not comply with the provisions as referred to in paragraph (1) through paragraph (4). (7) The Company must comply with the written instructions of the Financial Services Authority as referred to in paragraph (6).

Part Four
Paid-up Capital at the Time of Establishment

Article 12
(1) Insurance Companies must have Paid-up Capital at the time of establishment of at least Rp1,000,000,000,000.00 (one trillion rupiah).
(2) Reinsurance Companies must have Paid-up Capital at the time of establishment of at least Rp2,000,000,000,000.00 (two trillion rupiah).
(3) Sharia Insurance Companies must have Paid-up Capital at the time of establishment of at least Rp500,000,000,000.00 (five hundred billion rupiah).
(4) Sharia Reinsurance Companies must have Paid-up Capital at the time of establishment of at least Rp1,000,000,000,000.00 (one trillion rupiah).
(5) Paid-up Capital at the time of establishment must be paid in cash and in full, placed in the form of time deposits and/or current accounts in the name of the Company at:
a. commercial banks, Sharia commercial banks, and/or Sharia business units of commercial banks in Indonesia for Insurance Companies and Reinsurance Companies; or b. Sharia commercial banks and/or Sharia business units of commercial banks in Indonesia for Sharia Insurance Companies and Sharia Reinsurance Companies.

Part Five
Guarantee Fund

Article 13
(1) At the time of submitting a business license application, the Company must have a Guarantee Fund of at least 20% (twenty percent) of the minimum Paid-up Capital required as referred to in Article 12. (2) For Insurance Companies or Reinsurance Companies, the Guarantee Fund as referred to in paragraph (1) must be placed in the form of:
a. time deposits with automatic renewal at commercial banks, Sharia commercial banks, or Sharia business units of commercial banks in Indonesia that are not affiliated with the relevant Insurance Company or Reinsurance Company; and/or b. securities and/or Sharia securities issued by the Republic of Indonesia, which have a remaining maturity period of at least 1 (one) year at the date of the business license application. (3) For Sharia Insurance Companies or Sharia Reinsurance Companies, the Guarantee Fund as referred to in paragraph (1) must be placed in the form of:
a. time deposits with automatic renewal at Sharia commercial banks or Sharia business units of commercial banks in Indonesia that are not affiliated with the relevant Sharia Insurance Company or Sharia Reinsurance Company; and/or b. Sharia securities issued by the Republic of Indonesia, which have a remaining maturity period of at least 1 (one) year at the date of the business license application. (4) Companies that have obtained a business license must adjust the amount of the Guarantee Fund as referred to in paragraph (1) according to business development as referred to in the Financial Services Authority Regulation regarding the financial health of Companies, with the provision that it is not less than that required at the time of establishment. (5) In the event of an excess of the Guarantee Fund, the Company may liquidate the excess Guarantee Fund. (6) In the event of a claim that is due, the Company must use the excess Guarantee Fund as referred to in paragraph (5) for the payment of due claims.

Part Six
Administrative Sanctions

Article 14
(1) Violations of the provisions as referred to in Article 3 paragraph (1), Article 5 paragraph (1), Article 6 paragraph (1), Article 7, Article 8 paragraph (1), paragraph (4), Article 10 paragraph (1), Article 11 paragraph (4), paragraph (5), paragraph (7), and/or Article 13 paragraph (2), paragraph (3), paragraph (4), paragraph (6) are subject to administrative sanctions in the form of:
a. written warnings; and/or b. reduction of health level.
(2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Part Seven
Re-evaluation of Principal Parties

Article 15
In addition to imposing administrative sanctions as referred to in Article 14 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of the Company's principal parties.

CHAPTER III
BUSINESS LICENSING

Part One
Requirements and Procedures for Obtaining Business Licenses for Insurance Companies and Reinsurance Companies

Article 16
(1) Any Party conducting General Insurance Business, Life Insurance Business, or Reinsurance Business must first obtain a business license from the Financial Services Authority. (2) To obtain a business license as referred to in paragraph (1), the Board of Directors must submit a business license application to the Financial Services Authority. (3) The business license application as referred to in paragraph (2) is submitted together with:
a. a list of requirements for business license application documents for Insurance Companies and Reinsurance Companies listed in Appendix Table I which is an integral part of this Financial Services Authority Regulation; and b. an application for assessment of competence and propriety for prospective principal parties of Insurance Companies and Reinsurance Companies. (4) The assessment of competence and propriety for principal parties of Insurance Companies or Reinsurance Companies and the format of the application for assessment of competence and propriety as referred to in paragraph (3) letter b is carried out in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions.

Part Two
Requirements and Procedures for Obtaining Business Licenses for Sharia Insurance Companies and Sharia Reinsurance Companies

Paragraph 1
General

Article 17
(1) Any Party conducting Sharia General Insurance Business, Sharia Life Insurance Business, or Sharia Reinsurance Business must first obtain a business license from the Financial Services Authority. (2) The business license as a Sharia Insurance Company and Sharia Reinsurance Company is carried out by submitting an application:
a. for the new establishment of a Sharia Insurance Company or Sharia Reinsurance Company; b. conversion from an Insurance Company to a Sharia Insurance Company or conversion from a Reinsurance Company to a Sharia Reinsurance Company; or
c. Separation of the Sharia Unit from an Insurance Company or Reinsurance Company.
(3) Applications to obtain a business license as referred to in paragraph (1) and paragraph (2) must be submitted by the Board of Directors to the Financial Services Authority.

Paragraph 2
New Establishment of Sharia Insurance Companies or Sharia Reinsurance Companies

Article 18
(1) Applications for business licenses for the new establishment of Sharia Insurance Companies or Sharia Reinsurance Companies as referred to in Article 17 paragraph (2) letter a are submitted together with:
a. a list of requirements for business license application documents for the new establishment of Sharia Insurance Companies and Sharia Reinsurance Companies listed in Appendix Table II which is an integral part of this Financial Services Authority Regulation; and b. an application for assessment of competence and propriety for prospective principal parties of Sharia Insurance Companies and Sharia Reinsurance Companies. (2) The assessment of competence and propriety for principal parties of Sharia Insurance Companies or Sharia Reinsurance Companies and the format of the application for assessment of competence and propriety as referred to in paragraph (1) letter b is carried out in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions.

Paragraph 3
Conversion from Insurance Companies to Sharia Insurance Companies and Conversion from Reinsurance Companies to Sharia Reinsurance Companies

Article 19
Sharia Insurance Companies and Sharia Reinsurance Companies resulting from conversion must have Equity at the time of conversion of at least the minimum Equity required in this Financial Services Authority Regulation.

Article 20
(1) Conversion as referred to in Article 17 paragraph (2) letter b must meet the following provisions:
a. it is a healthy Insurance Company and Reinsurance Company that is not subject to sanctions; b. the conversion plan has been included in the Company's business plan unless the conversion occurs upon written instruction from the Financial Services Authority;
c. it does not reduce the rights of policyholders and/or insured parties;
d. it is carried out with notification to policyholders and/or insured parties regarding the conversion plan and the procedure for settling the rights of policyholders and/or insured parties; and e. it transfers the insurance portfolio to another Insurance Company or Reinsurance Company, pays the premium portion, and/or pays the cash value of coverage, for policyholders and/or insured parties who are not willing to become policyholders and/or participants of the resulting Sharia Insurance Company or Sharia Reinsurance Company. (2) Notification to policyholders and/or insured parties regarding the conversion plan as referred to in paragraph (1) letter d is carried out by Insurance Companies and Reinsurance Companies:
a. before submitting the conversion business license application to the Financial Services Authority; and b. after obtaining the conversion business license from the Financial Services Authority, before the implementation of the conversion. (3) Notification to policyholders and/or insured parties as referred to in paragraph (2) is carried out through:
a. national circulation electronic and/or print media in the Indonesian language; and b. letters or electronic communication media to each policyholder and/or insured party. (4) Notification before the Company implements conversion as referred to in paragraph (2) letter b which is carried out through media as referred to in paragraph (3) letter a must be carried out at the latest 5 (five) working days after obtaining the conversion business license from the Financial Services Authority.

Article 21
(1) Applications for conversion business licenses as referred to in Article 17 paragraph (2) letter b must be submitted by the Board of Directors of Insurance Companies or Reinsurance Companies to the Financial Services Authority together with:
a. a list of requirements for conversion business license application documents from Insurance Companies and Reinsurance Companies to Sharia Insurance Companies and Sharia Reinsurance Companies listed in Appendix Table III which is an integral part of this Financial Services Authority Regulation; and b. an application for assessment of competence and propriety for prospective principal parties of the resulting Sharia Insurance Companies and Sharia Reinsurance Companies. (2) The assessment of competence and propriety for principal parties of Sharia Insurance Companies or Sharia Reinsurance Companies and the format of the application for assessment of competence and propriety as referred to in paragraph (1) letter b is carried out in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions.

Article 22
Sharia Insurance Companies and Sharia Reinsurance Companies resulting from conversion must complete the implementation of the conversion by:
a. transferring the insurance portfolio to another Insurance Company or Reinsurance Company, paying the premium portion, and/or paying the cash value of coverage, for policyholders and/or insured parties who are not willing to become policyholders and/or participants of the resulting Sharia Insurance Company or Sharia Reinsurance Company; b. adjusting or transferring Insurance coverage to Sharia Insurance and reinsurance to Sharia reinsurance; and
c. adjusting the placement or transferring all investment instruments that do not comply with Sharia Principles to investment instruments that comply with Sharia Principles,
no later than 6 (six) months since the conversion business license is established by the Financial Services Authority.

Article 23
(1) Converted Companies may apply for an extension of the time limit for completing the implementation of conversion as referred to in Article 22 by submitting reasons and documents resulting in completion not being able to be carried out within the time limit established by the Financial Services Authority. (2) Based on the Company's request, the Financial Services Authority may establish an extension of the time limit for completing the implementation of conversion of at most 6 (six) months.

Part Three
Approval and Rejection of Business License Applications

Article 24
(1) The Financial Services Authority provides approval or rejection of business license applications as referred to in Article 16 and Article 17 at the latest 20 (twenty) working days since the complete business license application documents are received. (2) In providing approval or rejection of business license applications as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis of document completeness; b. verification of funding sources and capital deposits;
c. feasibility analysis of the Company's business plan in the context of document requirements as referred to in Article 16 paragraph (3) letter a, Article 18 paragraph (1) letter a, and Article 21 paragraph (1) letter a;
d. assessment of competence and propriety for prospective principal parties; e. analysis of reporting of approval/recording of Insurance products or Sharia Insurance products; and f. analysis of compliance with legislation in the field of insurance. (3) The Financial Services Authority may conduct an inspection of the Company's office to ensure the Company's operational readiness. (4) In the event that based on the results of the Financial Services Authority's analysis as referred to in paragraph (2) there are missing documents, the Board of Directors must submit complete documents at the latest 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (5) In the event that the Board of Directors has submitted complete documents as referred to in paragraph (4), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (1). (6) If within 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (4), the Financial Services Authority has not received a response to the document completeness request, the Company is considered to have canceled the business license application. (7) For Companies that cancel their business license applications as referred to in paragraph (6), the Financial Services Authority grants authority to the Company to liquidate funds intended as the Guarantee Fund. (8) In the event that the business license application as referred to in paragraph (1) is approved, the Financial Services Authority establishes a decision granting the business license to the Company. (9) In the event that the Financial Services Authority rejects the business license application as referred to in paragraph (1), the rejection is communicated in writing accompanied by the reasons for rejection. (10) The Financial Services Authority provides approval for the liquidation of the Guarantee Fund for Companies that cancel their business license applications as referred to in paragraph (7) and Companies whose business license applications are rejected as referred to in paragraph (8). (11) The provisions as referred to in paragraph (10) do not apply to the cancellation or rejection of conversion business licenses.

Article 25
(1) Companies that have obtained a business license from the Financial Services Authority must conduct business activities at the latest 3 (three) months calculated from the date the business license is established by the Financial Services Authority. (2) Companies that have obtained a business license from the Financial Services Authority must submit a report on the implementation of business activities as referred to in paragraph (1) to the Financial Services Authority at the latest 10 (ten) working days since the date the business activities begin. (3) The reporting of the implementation of business activities as referred to in paragraph (2) must be submitted by the Board of Directors to the Financial Services Authority attached with proof of coverage/participation activities that have been carried out by the Insurance Company or Sharia Insurance Company or proof of coverage/participation renewal that has been carried out by the Reinsurance Company or Sharia Reinsurance Company. (4) In the event that Companies that have obtained a business license from the Financial Services Authority have not conducted business activities until the time limit as referred to in paragraph (1), the business license established by the Financial Services Authority is declared void and invalid. (5) The provisions on the liquidation of the Guarantee Fund as referred to in Article 24 paragraph (10) apply mutatis mutandis to Companies that have obtained a business license from the Financial Services Authority but have not conducted business activities until the time limit as referred to in paragraph (1).

Part Four
Administrative Sanctions

Article 26
(1) Violations of the provisions as referred to in Article 20 paragraph (1), paragraph (4), Article 22, and/or Article 25 paragraph (1), paragraph (2) are subject to administrative sanctions in the form of:
a. written warnings; and/or b. reduction of health level.
(2) Violations of the provisions as referred to in Article 25 paragraph (2) are subject to additional administrative sanctions in the form of an administrative fine of Rp500,000.00 (five hundred thousand rupiah) per day of delay and at most Rp100,000,000.00 (one hundred million rupiah). (3) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically. (4) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Part Five
Re-evaluation of Principal Parties

Article 27
In addition to imposing administrative sanctions as referred to in Article 26 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of the Company's principal parties.

CHAPTER IV
CONTROLLING SHAREHOLDERS AND CONTROLLERS

Part One
Controlling Shareholders

Article 28
(1) Any Party may only become a Controlling Shareholder (PSP) in 1 (one) Life Insurance Company, 1 (one) General Insurance Company, 1 (one) Reinsurance Company, 1 (one) Sharia Life Insurance Company, 1 (one) Sharia General Insurance Company, and 1 (one) Sharia Reinsurance Company. (2) The provisions as referred to in paragraph (1) do not apply if the Controlling Shareholder is the Republic of Indonesia.

Part Two
Controllers

Article 29
(1) Companies must designate at least 1 (one) Controller.
(2) Companies must submit an application for the designation of a Controller together with the application for the competence and propriety assessment of prospective Controllers as referred to in paragraph (1) to the Financial Services Authority. (3) Parties categorized as Controllers as referred to in paragraph (1) must meet the following criteria:
a. Controlling Shareholders (PSP); b. shareholders; or
c. non-shareholders.
(4) The criteria as referred to in paragraph (3) letter a include calculations of cumulative share ownership among shareholders based on:
a. ownership relationships; and/or b. family relationships up to the second degree.
(5) The procedure for assessing the competence and propriety of Controllers is carried out in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions. (6) Controllers must jointly be responsible for replacing losses in the event that the losses are caused by the actions of the Controller, the influence of the Controller, and/or the actions of Parties under their control.

Article 30
(1) The Financial Services Authority is authorized to establish:
a. a Controller, if the Company does not establish a Controller as referred to in Article 29 paragraph (1); and/or b. another Controller outside the Controller established by the Company as referred to in Article 29 paragraph (1). (2) To establish a Controller as referred to in paragraph (1), the Financial Services Authority is authorized to issue written instructions to the Company to submit data supporting the appointment of prospective Controllers, including conducting confirmation with prospective Controllers outside of such Controller. (3) Companies must comply with the written instructions of the Financial Services Authority as referred to in paragraph (2). (4) In the event that the Company does not submit data as referred to in paragraph (2), the Financial Services Authority is authorized to establish a Controller as referred to in paragraph (1). (5) The procedure for the establishment of a Controller by the Financial Services Authority as referred to in paragraph (1) is carried out without following the provisions of the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions.

Article 31
(1) Parties who have been established as Controllers cannot cease to be Controllers without approval from the Financial Services Authority.
(2) To obtain approval as referred to in paragraph (1), the Company must submit a written application to the Financial Services Authority accompanied by the reasons for the dismissal of the Controller. (3) In the event that the Company only has 1 (one) Controller, the Company must first...

establishing a new Controller to obtain approval as referred to in paragraph (1).
(4) In granting approval or rejection of a request for the dismissal of a Controller submitted by the Company, the Financial Services Authority is authorized to conduct an examination. (5) The Financial Services Authority's approval or rejection of the request as referred to in paragraph (4) is determined within a maximum of 20 (twenty) working days from the receipt of the complete request or the determination of the examination result report. (6) For Parties who have been approved by the Financial Services Authority to cease being a Controller in the Company, but who continue to exercise Control over the Company, the Financial Services Authority is authorized to designate such Party as a Controller.

Article 32
(1) The Company is required to report changes in the Controller to the Financial Services Authority by attaching:
a. a list of shareholders; b. details of each share ownership; and
c. details of the entire business group structure related to the Company and the legal entity owner of the Company up to the ultimate owner, accompanied by supporting documents.
(2) Changes in the Controller as referred to in paragraph (1) include:
a. addition of a Controller; b. change of the Controller's name;
c. dismissal of the Controller; and/or
d. replacement of the Controller.
(3) Changes in the Controller as referred to in paragraph (1) must be reported by the Board of Directors to the Financial Services Authority within a maximum of 10 (ten) working days after being determined by the Company. (4) In the event that the Financial Services Authority has approved the dismissal of a Controller as referred to in paragraph (2) letter c, the results of the fitness and propriety assessment of the former Controller become invalid.

Article 33
In the event that the Financial Services Authority approves the request of a prospective Controller from the Company as referred to in Article 31 paragraph (2) and the reporting of changes in the Controller as referred to in Article 32 paragraph (1), the Financial Services Authority issues a letter of approval for the determination of the Controller.

Part Three
Administrative Sanctions

Article 34
(1) Violations of the provisions as referred to in Article 28 paragraph (1), Article 29 paragraph (1), paragraph (2), paragraph (6), Article 30 paragraph (3), Article 31 paragraph (2), and/or Article 32 paragraph (1), paragraph (3) are subject to administrative sanctions in the form of:
a. written warning; and/or b. reduction of health level.
(2) Violations of the provisions as referred to in Article 31 paragraph (2) are subject to additional administrative sanctions in the form of an administrative fine of IDR 100,000,000.00 (one hundred million rupiah). (3) Violations of the provisions as referred to in Article 32 paragraph (3) are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 100,000,000.00 (one hundred million rupiah). (4) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority issues a written warning sanction that ends automatically. (5) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Part Four
Reassessment of Key Parties

Article 35
In addition to imposing administrative sanctions as referred to in Article 34 paragraph (1), the Financial Services Authority is authorized to conduct a reassessment of the Company's key parties.

CHAPTER V
CONSOLIDATION OF COMPANIES

Article 36
Companies may carry out consolidation for:
a. realizing the strengthening of structure, resilience, and competitiveness of the insurance industry; b. increasing the Company's economies of scale; and/or
c. facing challenges and demands for product and service innovation in Insurance or Sharia Insurance based on technology.

Article 37
(1) Consolidation as referred to in Article 36 can be carried out through schemes:
a. Merger or Absorption; b. Takeover followed by Merger or Absorption; or
c. formation of an Insurance Business Group (KUPA).
(2) The Company consolidation scheme as referred to in paragraph (1) letter a applies to Parties that have become the Company's Principal Shareholder (PSP), either between Companies owned by the same PSP or with a Company owned by another PSP. (3) The Company consolidation scheme as referred to in paragraph (1) letter b applies to Parties that:
a. have become a PSP and have carried out a Takeover of 1 (one) or more Companies; or b. will become a PSP, carrying out a Takeover of 2 (two) or more Companies, followed by Merger or Absorption. (4) The Company consolidation scheme as referred to in paragraph (1) letter c applies to:
a. Companies that are a PSP of 1 (one) or more Companies; or b. PSPs that are legal entities of non-Company financial institutions, legal entities of non-financial service institutions, Indonesian citizens, Foreign Legal Entities, and/or foreign citizens who own 2 (two) or more Companies.

CHAPTER VI
MERGER AND ABSORPTION

Part One
General

Article 38
(1) Companies may carry out:
a. Merger; or b. Absorption.
(2) Merger or Absorption as referred to in paragraph (1) can only be carried out by Companies:
a. of the same legal entity form; b. having similar fields of business; and
c. having the same principles of business conduct.
(3) The provisions as referred to in paragraph (2) letter c do not apply in the event that Merger or Absorption is followed by an adjustment of business activity principles from conventional to Sharia Principles.

Article 39
(1) Companies carrying out Merger or Absorption as referred to in Article 38 paragraph (1) must first obtain approval from the Financial Services Authority.
(2) To obtain approval as referred to in paragraph (1), Companies must meet the requirements:
a. the Merger or Absorption plan has been included in the Company's business plan; b. the Merger or Absorption does not reduce the rights of policyholders, insured parties, or participants;
c. the financial condition of the Company resulting from the Merger or Absorption must still meet the financial health level provisions with a composite rating assessment result of 1 or composite rating 2; and
d. the prospective key parties of the Company resulting from the Merger or Absorption have obtained approval from the Financial Services Authority.
(3) To obtain approval for Merger or Absorption as referred to in paragraph (1), the Board of Directors must submit a request to the Financial Services Authority together with:
a. a list of document requirements for the Merger or Absorption approval request listed in the Appendix in Table IV which is an integral part of this Financial Services Authority Regulation; and b. a request for fitness and propriety assessment for the prospective key parties of the Company resulting from the Merger or Absorption.

Article 40
(1) The Financial Services Authority grants approval or rejection of the request for approval of Merger or Absorption as referred to in Article 39 paragraph (3) within a maximum of 20 (twenty) working days from the receipt of the complete Merger or Absorption approval request documents. (2) In granting approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis of document completeness as referred to in Article 39 paragraph (3); b. feasibility analysis of the implementation plan for Merger or Absorption;
c. fitness and propriety assessment of the key parties resulting from Merger and Absorption; and
d. analysis of compliance with regulations in the field of Insurance.
(3) In the event that based on the Financial Services Authority's analysis there are missing documents, the Board of Directors must submit the complete documents as referred to in paragraph (1) within a maximum of 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (4) In the event that the Board of Directors has submitted the complete documents as referred to in paragraph (3), the Financial Services Authority grants approval or rejection in accordance with the provisions as referred to in paragraph (1). (5) If within 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received a response to the requested document completeness, the Company is considered to have cancelled the request for approval of Merger or Absorption. (6) In the event that the request for approval of Merger or Absorption is approved, the Financial Services Authority issues a letter of approval for the implementation plan of Merger or Absorption to the relevant Company. (7) In the event that the request for approval of Merger or Absorption is rejected, the rejection is communicated in writing and accompanied by the reasons for rejection.

Article 41
(1) Companies that have obtained approval for the implementation plan of Merger or Absorption from the Financial Services Authority must hold a General Meeting of Shareholders (RUPS) approving the Merger or Absorption within a maximum of 60 (sixty) working days counted from the date of the Financial Services Authority's approval letter. (2) If the time as referred to in paragraph (1) has passed and the Company has not held a RUPS approving the Merger or Absorption, the Financial Services Authority may revoke the previously granted approval for the implementation plan of Merger or Absorption.

Part Two
Merger

Article 42
(1) The Company receiving the Merger is required to report the implementation of the RUPS approving the Merger to the Financial Services Authority within a maximum of 15 (fifteen) working days counted from the date of the RUPS. (2) The reporting of the implementation of the RUPS approving the Merger as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority together with the list of document requirements for reporting the implementation of the RUPS approving the Merger listed in the Appendix in Table V which is an integral part of this Financial Services Authority Regulation.

Article 43
Based on the reporting of the implementation of the RUPS approving the Merger as referred to in Article 42 paragraph (1), the Financial Services Authority:
a. conducts analysis and research on document completeness as referred to in Article 42 paragraph (2); b. revokes the business license of the Company merging and the Sharia Unit formation license of the Company merging, which becomes effective counted from the date the articles of association are approved by, agreed to by, or notified to the competent authority; and
c. grants approval for the change of name of the Sharia Unit in the context of Merger, which becomes effective counted from the date the articles of association are approved by, agreed to by, or notified to the competent authority.

Article 44
(1) The Company receiving the Merger is required to report the implementation of the Merger to the Financial Services Authority within a maximum of 15 (fifteen) working days counted from the date the articles of association have been approved by, agreed to by, or notified to the competent authority. (2) The reporting of the implementation of the Merger as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching documents in the form of a copy of the articles of association that have been approved by, agreed to by, or notified to the competent authority.

Article 45
Merger must be carried out in accordance with the provisions of regulations.

Part Three
Absorption

Article 46
(1) The resulting Company of the Absorption is required to report the implementation of the RUPS approving the Absorption to the Financial Services Authority within a maximum of 15 (fifteen) working days counted from the date of the RUPS. (2) The reporting of the implementation of the RUPS approving the Absorption as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority together with the list of document requirements for reporting the implementation of the RUPS approving the Absorption listed in the Appendix in Table VI which is an integral part of this Financial Services Authority Regulation.

Article 47
Based on the reporting of the implementation of the RUPS approving the Absorption as referred to in Article 46 paragraph (1), the Financial Services Authority:
a. conducts analysis and research on document completeness as referred to in Article 46 paragraph (2); b. revokes the business license of the Company absorbing and the Sharia Unit formation license of the Company absorbing, which becomes effective counted from the date the articles of association are approved by, agreed to by, or notified to the competent authority; and
c. grants approval or rejection:

business license to the Company that is the result of the Absorption; and
Sharia Unit formation license to the Company that is the result of the Absorption,
which becomes effective counted from the date the articles of association are approved by, agreed to by, or notified to the competent authority.

Article 48
(1) The resulting Company of the Absorption is required to report the implementation of the Absorption to the Financial Services Authority within a maximum of 15 (fifteen) working days counted from the date the articles of association are approved by, agreed to by, or notified to the competent authority. (2) The reporting of the implementation of the Absorption as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching documents in the form of a copy of the articles of association that have been approved by, agreed to by, or notified to the competent authority to the Financial Services Authority.

Article 49
Companies carrying out Absorption are prohibited from:
a. conducting operational activities; and b. marketing Insurance products or Sharia Insurance products, under the name of the new Company resulting from the Absorption before the implementation of the Absorption is reported to the Financial Services Authority as referred to in Article 48.

Article 50
Absorption must be carried out in accordance with the provisions of regulations.

Part Four
Administrative Sanctions

Article 51
(1) Violations of the provisions as referred to in Article 39 paragraph (1), Article 42 paragraph (1), Article 44 paragraph (1), Article 45, Article 46 paragraph (1), Article 48 paragraph (1), Article 49, and/or Article 50 are subject to administrative sanctions in the form of:
a. written warning; and/or b. reduction of health level.
(2) Violations of the provisions as referred to in Article 39 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 100,000,000.00 (one hundred million rupiah). (3) Violations of the provisions as referred to in Article 42 paragraph (1), Article 44 paragraph (1), Article 46 paragraph (1), and/or Article 48 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 100,000,000.00 (one hundred million rupiah). (4) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority issues a written warning sanction that ends automatically. (5) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Part Five
Reassessment of Key Parties

Article 52
In addition to imposing administrative sanctions as referred to in Article 51 paragraph (1), the Financial Services Authority is authorized to conduct a reassessment of the Company's key parties.

CHAPTER VII
INSURANCE BUSINESS GROUPS

Part One
General

Article 53
(1) The Insurance Business Group (KUPA) as referred to in Article 37 paragraph (1) letter c is formed by the Parent Company and/or the acting Parent Company which is assessed to be able to meet the capital adequacy and liquidity of the Companies within the KUPA. (2) A KUPA can be formed in the event that the plan for Merger or Absorption of Companies cannot significantly increase the business scale of the Company after Merger or Absorption, while still meeting the provisions as referred to in paragraph (1).

Article 54
(1) The KUPA structure as referred to in Article 37 paragraph (1) letter c consists of:
a. the Company as the Parent Company or acting Parent Company; and b. Subsidiary Companies.
(2) The Parent Company as referred to in paragraph (1) letter a is:
a. a PSP; or b. a shareholder other than a PSP who owns at least 10% (ten percent) of shares in the Company.
(3) The acting Parent Company as referred to in paragraph (1) letter a is a Company that has the same shareholders as the Subsidiary Company where the shareholders referred to are not the Parent Company. (4) The acting Parent Company as referred to in paragraph (3) must be a Company with the largest Equity. (5) The Subsidiary Company as referred to in paragraph (1) letter b can be 1 (one) or more:
a. Companies owned by the Parent Company or acting Parent Company; and/or b. Companies that have the same shareholders as the acting Parent Company where the shareholders referred to are not the Parent Company.

Part Two
Formation of KUPA

Article 55
(1) The Company responsible as the Parent Company or acting Parent Company must submit a plan for the formation of a KUPA to the Financial Services Authority accompanied by:
a. the KUPA structure as referred to in Article 54 paragraph (1); b. documents appointing the acting Parent Company from the PSP for the Company designated as the acting Parent Company by the PSP as referred to in Article 54 paragraph (1); and
c. documents stating the commitment of the Subsidiary Company's shareholders to resolve the capital and liquidity issues of the Subsidiary Company.
(2) In the event that the KUPA meets the formation requirements as referred to in Article 53 and Article 54, the Financial Services Authority issues a letter of affirmation regarding the KUPA formation plan as referred to in paragraph (1) to the Company as the Parent Company or acting Parent Company. (3) The affirmation letter as referred to in paragraph (2) is submitted by the Financial Services Authority within a maximum of 30 (thirty) working days after the KUPA formation plan accompanied by the KUPA structure is received by the Financial Services Authority for the formation of the KUPA for Companies that have been owned as referred to in paragraph (2). (4) In the event of changes to the KUPA structure, the Parent Company or acting Parent Company must submit a plan for the change of the KUPA structure to the Financial Services Authority to obtain affirmation. (5) The provisions regarding the formation of a KUPA as referred to in paragraph (1) to paragraph (3) apply mutatis mutandis to the change of the KUPA structure as referred to in paragraph (4).

CHAPTER VIII
INCREASE OF MINIMUM EQUITY AND COMPANY GROUPING

Part One
Minimum Equity of Companies

Article 56
(1) Companies are required to meet the Minimum Equity established by the Financial Services Authority.
(2) The obligation to meet Minimum Equity as referred to in paragraph (1) is carried out in 2 (two) stages:
a. the first stage is carried out no later than December 31, 2026, Companies must have a Minimum Equity of at least:

IDR 250,000,000,000.00 (two hundred fifty billion rupiah) for Insurance Companies;
IDR 500,000,000,000.00 (five hundred billion rupiah) for Reinsurance Companies;
IDR 100,000,000,000.00 (one hundred billion rupiah) for Sharia Insurance Companies; and
IDR 200,000,000,000.00 (two hundred billion rupiah) for Sharia Reinsurance Companies;
and b. the second stage is carried out no later than December 31, 2028, Companies have Minimum Equity based on Company grouping consisting of:
KPPE 1 must have a Minimum Equity of at least:
a) IDR 500,000,000,000.00 (five hundred billion rupiah) for Insurance Companies; b) IDR 1,000,000,000,000.00 (one trillion rupiah) for Reinsurance Companies; c) IDR 200,000,000,000.00 (two hundred billion rupiah) for Sharia Insurance Companies; and d) IDR 400,000,000,000.00 (four hundred billion rupiah) for Sharia Reinsurance Companies; and
KPPE 2 must have a Minimum Equity of at least:
a) IDR 1,000,000,000,000.00 (one trillion rupiah) for Insurance Companies; b) IDR 2,000,000,000,000.00 (two trillion rupiah) for Reinsurance Companies; c) IDR 500,000,000,000.00 (five hundred billion rupiah) for Sharia Insurance Companies; and d) IDR 1,000,000,000,000.00 (one trillion rupiah) for Sharia Reinsurance Companies. (3) The Company grouping as referred to in paragraph (2) is used by the Financial Services Authority in determining the appropriate Financial Services Authority supervision strategy based on the Company's Minimum Equity. (4) Companies in the KPPE 1 grouping as referred to in paragraph (2) letter b number 1 are prohibited from conducting business activities and/or Insurance or Sharia Insurance products other than simple Insurance or simple Sharia Insurance business activities and/or products. (5) Companies in the KPPE 2 grouping as referred to in paragraph (2) letter b number 2 letter b may conduct all business activities and/or Insurance or Sharia Insurance products. (6) Further provisions regarding Company grouping as referred to in paragraph (2) to paragraph (5) are established by the Financial Services Authority.

Article 57
Companies that have a Minimum Equity amount less than the Minimum Equity as referred to in Article 56 paragraph (2) letter a at the time this Financial Services Authority Regulation is promulgated must prepare a plan to meet the Minimum Equity.

Article 58
(1) Companies are required to submit the Minimum Equity fulfillment plan as referred to in Article 57 to the Financial Services Authority no later than 6 (six) months since this Financial Services Authority Regulation is promulgated. (2) If necessary, the Minimum Equity fulfillment plan as referred to in paragraph (1) can be adjusted with the approval of the Financial Services Authority.

Part Two
Minimum Equity for Companies in the Formation of KUPA

Article 59
For Companies carrying out consolidation with the scheme of forming a KUPA as referred to in Article 37 paragraph (1) letter c, the Minimum Equity that must be met by the Parent Company and acting Parent Company follows the provisions as referred to in Article 56 paragraph (2) letter b number 2.

Article 60
For Companies carrying out consolidation with the scheme of forming a KUPA as referred to in Article 37 paragraph (1) letter c, the Minimum Equity that must be met by the Subsidiary Company follows the provisions as referred to in Article 56 paragraph (2) letter a.

Article 61
In certain conditions, upon the application of the Company, the Financial Services Authority is authorized to extend the deadline for fulfilling the Minimum Equity as referred to in Article 56 paragraph (2).

Part Three
Administrative Sanctions

Article 62
(1) Violations of the provisions as referred to in Article 56 paragraph (1), paragraph (2), paragraph (4), Article 57, Article 58 paragraph (1), Article 59, and/or Article 60 shall be subject to administrative sanctions in the form of:
a. written warning; and/or b. downgrade of Health Rating.

(2) Violations of the provisions as referred to in Article 58 paragraph (1) shall be subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and at most IDR 100,000,000.00 (one hundred million rupiah).

(3) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been rectified, the Financial Services Authority shall impose a written warning sanction that ends automatically.

(4) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority shall revoke the written warning sanction.

Part Four
Re-evaluation of Key Parties

Article 63
In addition to imposing administrative sanctions as referred to in Article 62 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of the Company's key parties.

CHAPTER IX
SHARIA UNITS

Part One
General Provisions

Article 64
The Sharia Unit provisions apply to:
a. Sharia Units that have obtained formation permits before this Financial Services Authority Regulation is promulgated; and b. Sharia Units that obtain formation permits as a result of Merger.

Part Two
Accounting of Sharia Units

Article 65
(1) Sharia Units are required to maintain separate accounting from their parent Company.

(2) The financial reports of Sharia Units must be prepared in accordance with financial accounting standards.

Part Three
Management of Sharia Units

Article 66
(1) Sharia Units must be led by a Sharia Unit Manager.

(2) The Sharia Unit Manager as referred to in paragraph (1) is responsible for all operational activities of the Sharia Unit.

(3) The Sharia Unit Manager as referred to in paragraph (1) must at all times meet the following minimum requirements:
a. does not have non-performing loans and/or financing; b. possesses expertise, experience, and/or proof of training in Sharia finance; and
c. does not hold concurrent positions in other functions within the same Insurance Company or Reinsurance Company, unless the Sharia Unit Manager is held by the Board of Directors.

Article 67
(1) Insurance Companies and Reinsurance Companies are required to report changes in the Sharia Unit Manager to the Financial Services Authority within a maximum of 15 (fifteen) working days from the date of appointment of the Sharia Unit Manager.

(2) The report on changes in the Sharia Unit Manager as referred to in paragraph (1) must be submitted together with the list of reporting document requirements for changes in the Sharia Unit Manager contained in the Appendix in Table VII, which is an integral part of this Financial Services Authority Regulation.

Part Four
Closure of Sharia Units

Article 68
(1) In the event that:
a. an Insurance Company or Reinsurance Company that has a Sharia Unit submits an application for the closure of the Sharia Unit; or b. the Sharia Unit is subject to an administrative sanction in the form of revocation of the Sharia Unit formation permit, the Closure of the Sharia Unit shall be carried out.

(2) In the event that an Insurance Company or Reinsurance Company submits an application for the closure of the Sharia Unit as referred to in paragraph (1) letter a, the Insurance Company and Reinsurance Company are required to submit such application accompanied by a Sharia Unit closure plan to the Financial Services Authority.

(3) The closure plan as referred to in paragraph (2) must at least contain:
a. reasons or background for the closure of the Sharia Unit; b. description of the condition of the Sharia Unit, including data on the number of in-force policies, number of policyholders or participants, number of obligations of the Sharia Unit to policyholders or participants, and other obligations; and
c. plan for settling rights and obligations to policyholders or participants and other Parties.

(4) Based on the closure application as referred to in paragraph (2), the Financial Services Authority grants approval for the Sharia Unit closure plan.

Article 69
(1) Insurance Companies or Reinsurance Companies that have obtained approval for the Sharia Unit closure plan are required to:
a. cease all business activities of the Sharia Unit; b. announce the plan to cease Sharia Unit business activities and the plan to settle Sharia Unit obligations in:

national electronic and/or print mass media and the Company's website within a maximum of 10 (ten) working days from the date of the letter of approval for the Sharia Unit closure plan; and
letters or electronic communication media to each policyholder, participant, or insured; and
c. settle all obligations of the Sharia Unit within a maximum of 1 (one) year from the date of the letter of approval for the Sharia Unit closure plan from the Financial Services Authority.

(2) The implementation of the cessation of Sharia Unit business activities must be reported by the Insurance Company or Reinsurance Company that has a Sharia Unit to the Financial Services Authority within a maximum of 10 (ten) working days after the date of cessation.

Article 70
(1) After all obligations as referred to in Article 69 paragraph (1) have been settled, the Board of Directors of the Insurance Company or Reinsurance Company is required to submit a report on the implementation of the cessation of Sharia Unit business activities to the Financial Services Authority as referred to in Article 69 paragraph (2), which must at least contain:
a. implementation of the cessation of Sharia Unit activities as referred to in Article 69 paragraph (1) letter a; b. implementation of the announcement as referred to in Article 69 paragraph (1) letter b;
c. implementation of the settlement of rights and obligations of Sharia Unit policyholders or participants as referred to in Article 69 paragraph (1) letter c;
d. the final balance sheet of the Sharia Unit audited by an independent auditor; and e. a statement letter from the Board of Directors of the Insurance Company or Reinsurance Company stating that all obligations of the Sharia Unit have been settled and that any future claims will become the responsibility of the Insurance Company or Reinsurance Company.

(2) The report as referred to in paragraph (1) must be submitted within a maximum of 10 (ten) working days from the date the final balance sheet of the Sharia Unit is audited by an independent auditor.

(3) Based on the report as referred to in paragraph (1), the Financial Services Authority shall:
a. conduct an investigation into the report on the implementation of the Sharia Unit closure plan; and b. establish a decision to revoke the Sharia Unit formation permit within a maximum of 30 (thirty) working days from the date the report as referred to in paragraph (1) is received in complete form.

Part Five
Administrative Sanctions

Article 71
(1) Violations of the provisions as referred to in Article 65, Article 66 paragraph (1), Article 67 paragraph (1), Article 68 paragraph (2), Article 69, and/or Article 70 paragraph (1), paragraph (2) shall be subject to administrative sanctions in the form of:
a. written warning; and/or b. downgrade of Health Rating.

(2) Violations of the provisions as referred to in Article 67 paragraph (1), and Article 69 paragraph (2), Article 70 paragraph (2) shall be subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and at most IDR 100,000,000.00 (one hundred million rupiah).

(4) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority shall revoke the written warning sanction.

Part Six
Re-evaluation of Key Parties

Article 72
In addition to imposing administrative sanctions as referred to in Article 71 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of the Company's key parties.

CHAPTER X
FUNCTIONS IN THE ORGANIZATION OF COMPANIES

Part One
General Provisions

Article 73
(1) Companies are required to have an organizational structure that clearly describes the separation of risk management functions, financial management functions, and service functions.

(2) Companies are required to have work units handling at least the following functions:
a. underwriting; b. actuarial;
c. claim administration settlement;
d. marketing; e. finance including investment management; f. risk management; g. internal audit; h. administration and accounting;
i. compliance and fraud control;
j. implementation of anti-money laundering programs, prevention of terrorism financing, prevention of proliferation financing of weapons of mass destruction, and other financial crimes; k. financial literacy and inclusion; and
l. service and complaint resolution.

(3) The organizational structure as referred to in paragraph (1) must be supplemented with written job descriptions, authorities, responsibilities, and work procedures, which are established by the Board of Directors.

(4) Companies are required to have an organizational structure as referred to in paragraph (1) that reflects good internal control and committees with specific functions.

(5) Companies are required to have employees responsible for each function as referred to in paragraph (2).

(6) Company management must be supported at least by data processing systems that can generate accurate and accountable information for decision-making.

Part Two
Administrative Sanctions

Article 74
(1) Violations of the provisions as referred to in Article 73 shall be subject to administrative sanctions in the form of:
a. written warning; and/or b. downgrade of Health Rating.

(2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been rectified, the Financial Services Authority shall impose a written warning sanction that ends automatically.

(3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority shall revoke the written warning sanction.

Part Three
Re-evaluation of Key Parties

Article 75
In addition to imposing administrative sanctions as referred to in Article 74 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of the Company's key parties.

CHAPTER XI
CONCURRENT POSITIONS AND CERTIFICATION OF KEY PARTIES AND USE OF FOREIGN WORKERS

Part One
General Provisions

Article 76
(1) Companies are required to have at least 3 (three) members of the Board of Directors and at least 3 (three) members of the Board of Commissioners.

(2) Companies are prohibited from having the number of members of the Board of Commissioners exceed the number of members of the Board of Directors.

Part Two
Concurrent Position Provisions for Directors, Board of Commissioners, and DPS

Article 77
(1) Companies are prohibited from appointing members of the Board of Directors who hold concurrent positions as members of the board of directors or equivalent, members of the board of commissioners or equivalent, or Sharia supervisory board on insurance companies and/or other companies.

(2) The prohibition on concurrent positions as referred to in paragraph (1) is excepted for members of the Board of Directors other than the Chief Director or equivalent to perform functional tasks as members of the board of commissioners or equivalent in subsidiaries controlled by the Company, provided that such concurrent positions do not cause the person concerned to neglect the execution of duties and authorities as a member of the Board of Directors.

Article 78
(1) Companies are prohibited from appointing members of the Board of Commissioners who hold concurrent positions as:
a. members of the Board of Commissioners or equivalent on insurance companies with similar business fields; b. members of the DPS on insurance companies with similar business fields; and/or
c. members of the Board of Directors or equivalent on insurance companies and/or other companies.

(2) Companies are prohibited from appointing members of the Board of Commissioners who hold concurrent positions other than as members of the board of commissioners or equivalent or members of the Sharia supervisory board in at most 3 (three) other companies that:
a. are not insurance companies; and/or b. are insurance companies with non-similar business fields.

(3) Companies are prohibited from appointing independent members of the Company's Board of Commissioners who hold concurrent positions as independent members of the Board of Commissioners on Insurance Companies and Sharia Insurance Companies with similar business fields.

Article 79
(1) Companies are prohibited from appointing members of the DPS who hold concurrent positions as:
a. members of the Board of Directors on insurance companies; or b. members of the Board of Commissioners on insurance companies with similar business fields.

(2) Companies are prohibited from appointing members of the DPS who hold concurrent positions other than as members of the board of directors, members of the board of commissioners, or members of the Sharia supervisory board in at most 5 (five) other financial service institutions.

Part Three
Certification

Article 80
(1) Members of the Board of Directors, members of the Board of Commissioners, and Executive Officials are required to possess expertise certificates in risk management from the Competency Assessment Agency (LSP) in the field of risk management.

(2) The expertise certificate in risk management for members of the Board of Directors and members of the Board of Commissioners as referred to in paragraph (1) is one of the requirements that must be met for the fit and proper test assessment.

(3) Further provisions regarding certification for members of the Board of Directors, members of the Board of Commissioners, and Executive Officials as referred to in paragraph (1) shall be established by the Financial Services Authority.

Part Four
Use of Foreign Workers

Article 81
(1) Companies may employ foreign workers.

(2) Foreign workers as referred to in paragraph (1) are required to meet the following provisions:
a. may only hold positions as:

Experts who are Executive Officials;
Actuaries; or
Consultants; and
b. may only be assigned to handle functions:
underwriting;
actuarial;
marketing; and/or
information systems.

(3) Companies employing foreign workers are required to meet the following time limits:
a. for foreign workers holding positions as Experts who are Executive Officials as referred to in paragraph (2) letter a number 1, may only be employed for a maximum period of 3 (three) years and may be extended 1 (one) time for a maximum of 1 (one) year; b. for foreign workers holding positions as actuaries as referred to in paragraph (2) letter a number 2, may only be employed for a maximum period of 5 (five) years and may be extended 1 (one) time for a maximum of 5 (five) years; and
c. for foreign workers holding positions as consultants as referred to in paragraph (2) letter a number 3, may only be employed for a maximum period of 3 (three) years and may be extended 1 (one) time for a maximum of 1 (one) year.

(4) Companies are prohibited from employing foreign workers who do not meet the following provisions:
a. possessing expertise corresponding to the field of duty that will be their responsibility; b. the foreign worker holds a position that cannot yet be filled by Indonesian workers; and
c. meeting the provisions of legislation in the field of manpower.

(5) Companies employing foreign workers as Experts who are Executive Officials as referred to in paragraph (2) letter a number 1, the assignment of foreign workers as Experts who are Executive Officials must be accompanied by Indonesian workers for the purpose of knowledge, expertise, and technology transfer.

(6) Companies employing foreign workers as actuaries as referred to in paragraph (2) letter a number 2 are required to meet the following provisions:
a. possessing qualifications as an actuary; b. having work experience in insurance actuarial fields for at least 3 (three) years; and
c. receiving a recommendation from the Indonesian actuarial professional association stating that the person concerned is deemed eligible to work in the Company for actuaries who are not members of the actuarial professional association.

(7) Companies employing foreign workers as consultants as referred to in paragraph (2) letter a number 3 are required to meet the following provisions:
a. the assignment of foreign workers is only to carry out specific projects or programs in the insurance field; and b. the assignment of foreign workers is accompanied by Indonesian workers for the purpose of knowledge, expertise, and technology transfer.

(8) The Financial Services Authority is authorized to issue written instructions to Companies to dismiss foreign workers who do not meet the requirements as referred to in paragraph (2) to paragraph (7).

(9) Companies are required to dismiss foreign workers who do not meet the requirements based on the written instruction of the Financial Services Authority as referred to in paragraph (8).

Article 82
(1) Companies employing foreign workers as referred to in Article 81 must first include the plan for the use of foreign workers in the business plan.

(2) Companies employing foreign workers and having included the plan for the use of foreign workers in the business plan as referred to in paragraph (1) are required to first report to the Financial Services Authority within a maximum of 20 (twenty) working days before the foreign workers in question are employed.

(3) The report on the plan to employ foreign workers as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority together with the list of reporting document requirements for the plan to employ foreign workers contained in the Appendix in Table VIII, which is an integral part of this Financial Services Authority Regulation.

Article 83
(1) Companies are required to report the appointment and dismissal of foreign workers to the Financial Services Authority within a maximum of 20 (twenty) working days from the date of appointment or dismissal.

(2) The report on the appointment of foreign workers as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority together with the list of reporting document requirements for the appointment of foreign workers contained in the Appendix in Table IX, which is an integral part of this Financial Services Authority Regulation.

(3) The report on the dismissal of foreign workers as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority accompanied by the reasons for dismissal.

Article 84
(1) Companies employing foreign workers as referred to in Article 81 are required to conduct knowledge transfer activities from foreign workers to Company employees.

(2) Knowledge transfer as referred to in paragraph (1) must be made in the form of annual education and training programs for Company employees.

(3) The implementation of knowledge transfer programs in the form of annual education and training programs for Company employees as referred to in paragraph (2) must be included by the Company in the business plan realization report.

Part Five
Human Resource Development

Article 85
(1) Companies are required to formulate and submit a human resource quality development program plan annually in the business plan.

(2) Human resource development for Company employees as referred to in paragraph (1) must be budgeted and realized in the form of annual human resource education and training programs.

(3) The implementation of annual human resource education and training programs as referred to in paragraph (2) must be reported in the business plan realization report.

(4) Further provisions regarding the cost amount of annual human resource education and training programs as referred to in paragraph (2) shall be established by the Financial Services Authority.

Part Six
Administrative Sanctions

Article 86
(1) Violations of the provisions as referred to in Article 76, Article 77 paragraph (1), Article 78, Article 79, Article 80 paragraph (1), Article 81 paragraph (2), paragraph (3), paragraph (4), paragraph (5), paragraph (6), paragraph (7), paragraph (9), Article 82 paragraph (2), Article 83 paragraph (1), Article 84 paragraph (1), paragraph (3), and/or Article 85 paragraph (1), paragraph (2), paragraph (3) shall be subject to administrative sanctions in the form of:
a. written warning; and/or b. downgrade of Health Rating.

(2) Violations of the provisions as referred to in Article 82 paragraph (1) and Article 83 paragraph (1) shall be subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and at most IDR 100,000,000.00 (one hundred million rupiah).

(4) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority shall revoke the written warning sanction.

Part Seven
Re-evaluation of Key Parties

Article 87
In addition to imposing administrative sanctions as referred to in Article 86 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of the Company's key parties.

CHAPTER XII
EXPERTS, ACTUARIES, INTERNAL AUDITORS, AND EXECUTIVE OFFICIALS

Part One
Experts for General Insurance Companies and Sharia General Insurance Companies

Article 88
(1) General Insurance Companies and Sharia General Insurance Companies are required to employ at least 1 (one) Expert.

(2) Technical Experts in General Insurance Companies and Sharia General Insurance Companies as referred to in paragraph (1) must at all times meet the following minimum requirements:
a. hold a general insurance or Sharia general insurance expertise certificate with the highest level from the Competency Assessment Agency (LSP) in the insurance field; b. have at least 3 (three) years of work experience in the field of general insurance or Sharia general insurance risk management; and
c. not be subject to sanctions from the relevant professional association.

(3) General Insurance Companies and Sharia General Insurance Companies are required to adjust and meet the qualification and quantity of Technical Experts in accordance with:
a. the type and business lines conducted; b. business complexity; and
c. applicable regulations.

(4) Technical Experts as referred to in paragraph (3) must meet the following requirements:
a. hold a general insurance or Sharia general insurance expertise certificate with a level at least one level below the highest qualification from the Competency Assessment Agency (LSP) in the insurance field; b. hold an expertise certificate corresponding to the business lines conducted from the Competency Assessment Agency (LSP) in the insurance field;
c. have at least 3 (three) years of work experience in the field of risk management; and
d. not be subject to sanctions from the relevant professional association.

(5) General Insurance Companies and Sharia General Insurance Companies are prohibited from employing Technical Experts as referred to in paragraph (1) and paragraph (3) who hold concurrent positions as:
a. members of the Board of Directors, members of the Board of Commissioners, or members of the Sharia Supervisory Board (DPS) within the same Company; and/or b. members of the board of directors, members of the board of commissioners, members of the Sharia supervisory board, or employees in insurance companies and/or other companies.

(6) The provisions on concurrent positions as referred to in paragraph (5) letter a are exempted for Technical Experts who hold concurrent positions as members of the Board of Directors who oversee the insurance technical function.

Part Two
Technical Experts in Life Insurance Companies and Sharia Life Insurance Companies
Article 89

(1) Life Insurance Companies and Sharia Life Insurance Companies are required to employ at least 1 (one) Technical Expert.

(2) Technical Experts in Life Insurance Companies and Sharia Life Insurance Companies as referred to in paragraph (1) must at all times meet the following minimum requirements:
a. hold a life insurance or Sharia life insurance expertise certificate with the highest level from the Competency Assessment Agency (LSP) in the insurance field; b. have at least 3 (three) years of work experience in the field of life insurance or Sharia life insurance risk management; and
c. not be subject to sanctions from the relevant professional association.

(3) Life Insurance Companies and Sharia Life Insurance Companies are required to adjust and meet the qualification and quantity of Technical Experts in accordance with:
a. the type and business lines conducted; b. business complexity; and
c. applicable regulations.

(4) Technical Experts as referred to in paragraph (3) must meet the following requirements:
a. hold a life insurance or Sharia life insurance expertise certificate with a level at least one level below the highest qualification from the Competency Assessment Agency (LSP) in the insurance field; b. hold an expertise certificate corresponding to the business lines conducted from the Competency Assessment Agency (LSP) in the insurance field;
c. have at least 3 (three) years of work experience in the field of risk management; and
d. not be subject to sanctions from the relevant professional association.

(5) Life Insurance Companies and Sharia Life Insurance Companies are prohibited from appointing Technical Experts as referred to in paragraph (1) and paragraph (3) who hold concurrent positions as:
a. members of the Board of Directors, members of the Board of Commissioners, or members of the Sharia Supervisory Board (DPS) within the same Company; and/or b. members of the board of directors, members of the board of commissioners, members of the Sharia supervisory board, or employees in insurance companies and/or other companies.

Part Three
Technical Experts in Reinsurance Companies and Sharia Reinsurance Companies
Article 90

(1) Reinsurance Companies and Sharia Reinsurance Companies are required to employ at least 1 (one) Technical Expert.

(2) Technical Experts in Reinsurance Companies and Sharia Reinsurance Companies as referred to in paragraph (1) must meet the following requirements:
a. hold a general insurance or Sharia general insurance expertise certificate with the highest level from the Competency Assessment Agency (LSP) in the insurance field; b. hold a life insurance or Sharia life insurance expertise certificate with the highest level from the Competency Assessment Agency (LSP) in the insurance field, in the event that Reinsurance Companies and Sharia Reinsurance Companies conduct life reinsurance or Sharia life reinsurance business activities;
c. have at least 3 (three) years of work experience in the field of reinsurance risk management; and
d. not be subject to sanctions from the relevant professional association.

(3) Reinsurance Companies and Sharia Reinsurance Companies are required to adjust and meet the qualification and quantity of Technical Experts in accordance with:
a. the type and business lines conducted; b. business complexity; and
c. applicable regulations.

(4) Technical Experts as referred to in paragraph (3) must meet the following requirements:
a. hold a general insurance or Sharia general insurance expertise certificate with a level at least one level below the highest qualification from the Competency Assessment Agency (LSP) in the insurance field; b. hold a life insurance or Sharia life insurance expertise certificate with a level at least one level below the highest qualification from the Competency Assessment Agency (LSP) in the insurance field;
c. hold an expertise certificate corresponding to the business lines from the Competency Assessment Agency (LSP) in the insurance field;
d. have at least 3 (three) years of work experience in the field of risk management; and e. not be subject to sanctions from the relevant professional association.

(5) Reinsurance Companies and Sharia Reinsurance Companies are prohibited from appointing Technical Experts as referred to in paragraph (1) and paragraph (3) who hold concurrent positions as:
a. members of the Board of Directors, members of the Board of Commissioners, or members of the Sharia Supervisory Board (DPS) within the same Company; and/or b. members of the board of directors, members of the board of commissioners, members of the Sharia supervisory board, or employees in insurance companies and/or other companies.

Part Four
Technical Experts in Sharia Units
Article 91

(1) Insurance Companies and Reinsurance Companies that have Sharia Units are required to employ Technical Experts specifically assigned to the Sharia Unit, at least 1 (one) person.

(2) Technical Experts specifically assigned to the Sharia Unit as referred to in paragraph (1) must at all times meet the following requirements:
a. hold a Sharia general insurance expertise certificate for Technical Experts specifically assigned to the Sharia Unit of General Insurance Companies with a level at least one level below the highest qualification from the Competency Assessment Agency (LSP) in the insurance field; b. hold a Sharia life insurance expertise certificate for Technical Experts specifically assigned to the Sharia Unit of Life Insurance Companies with a level at least one level below the highest qualification from the Competency Assessment Agency (LSP) in the insurance field;
c. hold a Sharia general insurance expertise certificate for Technical Experts specifically assigned to the Sharia Unit of Reinsurance Companies with a level at least one level below the highest qualification from the Competency Assessment Agency (LSP) in the insurance field;
d. hold a Sharia life insurance expertise certificate for Technical Experts specifically assigned to the Sharia Unit of Reinsurance Companies conducting Sharia life reinsurance business activities with a level at least one level below the highest qualification from the Competency Assessment Agency (LSP) in the insurance field; e. hold an expertise certificate corresponding to the business lines from the Competency Assessment Agency (LSP) in the insurance field; f. have at least 3 (three) years of work experience in the field of risk management; and g. not be subject to sanctions from the relevant professional association.

(3) Insurance Companies and Reinsurance Companies that have Sharia Units are prohibited from appointing Technical Experts as referred to in paragraph (1) who hold concurrent positions as:
a. members of the Board of Directors, members of the Board of Commissioners, members of the Sharia Supervisory Board (DPS), or Sharia Unit Heads within the same Company; and/or b. members of the board of directors, members of the board of commissioners, members of the Sharia supervisory board, or Sharia Unit Heads in insurance companies and/or other companies.

(4) The provisions on concurrent positions as referred to in paragraph (3) letter a are exempted for Technical Experts who hold concurrent positions as members of the Board of Directors who oversee the insurance technical function.

Part Five
Technical Experts in Offices Outside the Head Office
Article 92

(1) Companies are required to employ at least 1 (one) Technical Expert with a level at least one level below the highest qualification in each office outside the head office that has the authority to make decisions regarding the acceptance or rejection of coverage/membership and/or claims.

(2) Technical Experts as referred to in paragraph (1) must work full-time and be stationed at the respective office in accordance with the assignment letter from the Company.

(3) Technical Experts as referred to in paragraph (1) must at all times meet the following requirements:
a. hold an expertise certificate corresponding to the business scope with a level at least one level below the highest qualification from the Competency Assessment Agency (LSP) in the insurance field; b. have at least 2 (two) years of work experience in the field of insurance risk management; and
c. not be subject to sanctions from the relevant professional association.

Part Six
Actuaries
Article 93

(1) Companies are required to employ 1 (one) actuary as the Company Actuary who leads the actuarial function as regulated in Article 73 paragraph (2) letter b.

(2) Companies are required to employ actuaries in sufficient numbers in accordance with:
a. the type and business lines conducted; and b. business complexity.

(3) Companies are prohibited from employing Company Actuaries who hold concurrent positions as:
a. members of the Board of Directors, members of the Board of Commissioners, members of the Sharia Supervisory Board (DPS), or officials other than the actuarial function within the same Company; b. actuarial consultants; and/or
c. actuaries, Technical Experts, members of the board of directors, or officials in other companies.

(4) Company Actuaries as referred to in paragraph (1) and actuaries employed by the Company as referred to in paragraph (2) must at all times meet the following minimum requirements:
a. hold qualifications as an actuary that have received permission from the competent authority; b. have at least 3 (three) years of work experience in the field of insurance actuarial science; and
c. be members of the actuarial professional association or receive a recommendation from the actuarial professional association stating that the person is deemed eligible to work in Indonesia for actuaries who are not members of the actuarial professional association.

Article 94

(1) Company Actuaries as referred to in Article 93 paragraph (1) and actuaries employed by the Company as referred to in Article 93 paragraph (2) are at least tasked with evaluating the Company's obligations to policyholders, insured parties, or participants, and other technical actuarial aspects.

(2) In carrying out their duties, Company Actuaries as referred to in Article 93 paragraph (1) and actuaries employed by the Company as referred to in Article 93 paragraph (2) must adhere to applicable practice standards and professional codes of ethics.

Part Seven
Internal Auditors
Article 95

(1) Companies are required to have an internal audit function in accordance with the size, characteristics, and business complexity of the Company.

(2) The internal audit function as referred to in paragraph (1) is formulated in the internal audit function implementation standards, which at least cover matters regulated in the internal audit professional standards.

(3) The implementation of the internal audit function is supported by adequate resources, methodologies, tools, and audit techniques.

Article 96

(1) The work unit carrying out the Company's internal audit function is directly responsible to the Chief Executive Officer or equivalent.

(2) In carrying out their duties, the internal audit work unit as referred to in paragraph (1) is required to submit reports to:
a. the Chief Executive Officer or equivalent; or b. the Board of Commissioners.

(3) Copies of the reports as referred to in paragraph (2) letter a must be submitted to the Board of Commissioners, the audit committee, and directors or equivalents who oversee the compliance function.

(4) The work unit carrying out the Company's internal audit function as referred to in paragraph (1) is led by an internal auditor.

(5) The internal auditor leading the work unit carrying out the Company's internal audit function as referred to in paragraph (4) must have adequate competence and ability to lead an independent and objective internal audit function.

(6) The internal auditor as referred to in paragraph (5) is appointed and dismissed by the Chief Executive Officer or equivalent after obtaining approval from the Board of Commissioners, considering the recommendation of the audit committee.

Article 97

The work unit carrying out the Company's internal audit function as referred to in Article 96 paragraph (1) has the authority to:
a. access all relevant information about the Company related to the tasks and functions of the internal audit; b. communicate directly with:

The Board of Directors;
The Board of Commissioners;
The audit committee; and
The Sharia Supervisory Board (DPS) for Sharia Insurance Companies, Sharia Reinsurance Companies, and Insurance or Reinsurance Companies that have Sharia Units;
c. hold regular and incidental meetings with:
The Board of Directors;
The Board of Commissioners;
The audit committee; and
The Sharia Supervisory Board (DPS) for Sharia Insurance Companies, Sharia Reinsurance Companies, and Insurance or Reinsurance Companies that have Sharia Units;
d. coordinate activities with external auditors; e. attend strategic meetings; and f. other authorities related to the implementation of the internal audit function.

Article 98

The main tasks of the work unit carrying out the Company's internal audit function as referred to in Article 96 paragraph (1) include:
a. assisting the Chief Executive Officer or equivalent and the Board of Commissioners in supervision by operationalizing planning, implementation, and monitoring of audit results; b. conducting analysis and assessment in the fields of finance, accounting, operations, and other fields;
c. identifying all possibilities to improve and increase the efficiency of resource and fund utilization;
d. providing improvement suggestions and objective information about audited activities at all management levels; and e. other tasks related to the implementation of the internal audit function.

Article 99

(1) Companies are required to:
a. designate the work unit carrying out the internal audit function with qualifications possessing the knowledge, skills, and competencies needed for the implementation of the internal audit function for the Company as a whole; b. ensure that the work unit carrying out the internal audit function applies knowledge, skills, and competencies professionally; and
c. ensure that the work unit carrying out the internal audit function increases knowledge, skills, and other competencies through continuing professional development.

(2) Insurance Companies and Reinsurance Companies that have Sharia Units are required to designate at least 1 (one) member of the work unit carrying out the internal audit function who has knowledge and/or understanding of insurance operations with Sharia Principles.

Part Eight
Executive Officers
Article 100

(1) Companies are required to conduct self-assessments of prospective Executive Officers before appointing or replacing Executive Officers.

(2) The assessment of prospective Executive Officers as referred to in paragraph (1) is conducted regarding integrity, financial reputation, and competencies relevant to the prospective Executive Officer's field of work.

(3) The assessment of prospective Executive Officers as referred to in paragraph (2) at least covers:
a. assessment of track record, including sanctions previously imposed by the Financial Services Authority (OJK), Associations, professional associations in the financial services sector, the Company, or other companies; b. having non-performing loans and/or financing in financial services institutions and/or being a controller, member of the board of directors, member of the board of commissioners, or equivalent of a company with non-performing loans and/or financing;
c. assessment regarding track record on bankruptcy aspects and/or experience as a shareholder, member of the board of directors, member of the board of commissioners, or equivalent, who was declared guilty of causing a company to be declared bankrupt or having its business license revoked;
d. educational background, both formal and informal; e. the prospective person's ability to hold the position to be occupied; and f. concurrent positions.

(4) Executive Officers must at all times meet the following requirements:
a. integrity; b. financial reputation; and
c. have competencies relevant to the prospective Executive Officer's field of work.

(5) Companies are required to dismiss Executive Officers who do not meet the criteria as referred to in paragraph (4).

(6) In the event that, based on assessment or supervision results from the Financial Services Authority (OJK), a Company's Executive Officer does not meet the criteria as referred to in paragraph (4), the Financial Services Authority (OJK) has the authority to issue written instructions to the Company to dismiss the said Executive Officer.

(7) Companies are required to comply with the written instructions of the Financial Services Authority (OJK) as referred to in paragraph (6).

(8) Companies are required to report the appointment and dismissal of Executive Officers to the Financial Services Authority (OJK) every month, reported as part of the Company's periodic reports in accordance with regulations regarding the form and structure of the Company's periodic reports.

Article 101

(1) In the event of a vacancy in the Executive Officer position or an Executive Officer who cannot carry out duties for more than 3 (three) months, the Company may appoint a temporary Executive Officer.

(2) The temporary appointment of Executive Officers as referred to in paragraph (1) must undergo self-assessment as referred to in Article 100 paragraph (1).

(3) Companies are required to appoint definitive Executive Officers at the latest within 6 (six) months from the date of temporary appointment of Executive Officers as referred to in paragraph (1).

Part Nine
Reporting of Appointment and Dismissal of Technical Experts, Company Actuaries, and Internal Auditors
Article 102

(1) Companies are required to report the appointment and dismissal of Technical Experts, Company Actuaries, and internal auditors to the Financial Services Authority (OJK) at the latest within 20 (twenty) working days from the date of appointment or dismissal of Technical Experts, Company Actuaries, and/or internal auditors.

(2) The reporting of the appointment of Technical Experts, Company Actuaries, and/or internal auditors as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority (OJK) together with the list of reporting document requirements for the appointment of Technical Experts, Company Actuaries, and/or internal auditors listed in Appendix Table X, which is an integral part of this Financial Services Authority Regulation.

(3) The reporting of the dismissal of Technical Experts, Company Actuaries, and/or internal auditors as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority (OJK).

Part Ten
Administrative Sanctions
Article 103

(1) Violations of the provisions as referred to in Article 88 paragraph (1), paragraph (3), paragraph (5), Article 89 paragraph (1), paragraph (3), paragraph (5), Article 90 paragraph (1), paragraph (3), paragraph (5), Article 91 paragraph (1), paragraph (3), Article 92 paragraph (1), paragraph (2), Article 93 paragraph (1), paragraph (2), paragraph (3), Article 95 paragraph (1), Article 96 paragraph (2), Article 99, Article 100 paragraph (1), paragraph (4), paragraph (5), paragraph (7), paragraph (8), Article 101 paragraph (2), paragraph (3), and/or Article 102 paragraph (1) are subject to administrative sanctions in the form of:
a. written warnings; and/or b. reduction of health level.

(2) Violations of the provisions as referred to in Article 102 paragraph (1) are subject to additional administrative sanctions in the form of administrative fines of Rp500,000.00 (five hundred thousand rupiah) per day of delay and at most Rp100,000,000.00 (one hundred million rupiah).

(3) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority (OJK) provides written warning sanctions that end automatically.

(4) In the event that the violations of the provisions as referred to in paragraph (1) have been fulfilled, the Financial Services Authority (OJK) revokes the written warning sanctions.

Part Eleven
Re-evaluation of Key Parties
Article 104

In addition to imposing administrative sanctions as referred to in Article 103 paragraph (1), the Financial Services Authority (OJK) has the authority to conduct re-evaluations of the Company's key parties.

CHAPTER XIII
OFFICES OUTSIDE THE HEAD OFFICE
Part One
General
Article 105

(1) Companies may open offices outside the head office within or outside the country.

(2) Offices outside the head office as referred to in paragraph (1) consist of offices outside the head office that:
a. have the authority to accept or reject insurance closures, sign policies, determine to pay or reject claims; and b. do not have the authority to accept or reject insurance closures, sign policies, determine to pay or reject claims.

(3) Companies are fully responsible for every office owned/managed by:
a. the Company; or b. third parties authorized to use the Company's name.

Part Two
Opening Offices Outside the Head Office with Authority to Make Decisions Regarding Acceptance and Rejection of Coverage/Membership and Claims
Article 106

(1) Companies are required to include every plan to open offices outside the head office with authority as referred to in Article 105 paragraph (2) letter a in the Company's business plan.

(2) The obligation as referred to in paragraph (1) follows Financial Services Authority Regulations regarding the business plans of non-bank financial service institutions.

(3) Companies intending to open offices outside the head office with authority as referred to in Article 105 paragraph (2) letter a must:
a. meet the solvency requirements for the last 4 (four) quarters; b. have a health level with composite rating 1 or composite rating 2;
c. have Technical Experts working full-time and stationed at the respective office; and
d. not be subject to administrative sanctions by the Financial Services Authority (OJK).

(4) In the event that the Company does not meet the provisions as referred to in paragraph (1) and paragraph (3), the Financial Services Authority (OJK) has the authority to issue written instructions to the Company to

temporarily suspending operational activities of offices outside the head office that have the aforementioned authority.
(5) The Company is required to fulfill the written instructions of the Financial Services Authority as referred to in paragraph (4).
(6) The temporary suspension of operational activities of the Company as referred to in paragraph (4) is carried out until the Company fulfills the provisions as referred to in paragraph (1) and paragraph (3).

Article 107
(1) The Company is required to report every opening of an office outside the head office that has authority as referred to in Article 105 paragraph (2) letter a to the Financial Services Authority at the latest 20 (twenty) working days since the office began operations. (2) The reporting of the opening of an office outside the head office as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority together with the list of requirements for documents for the reporting of the opening of an office outside the head office that has authority listed in the Appendix in Table XI which is an inseparable part of this Financial Services Authority Regulation.

Article 108
The Company is prohibited from cooperating with other Parties in the management of offices outside the head office that have authority as referred to in Article 105 paragraph (2) letter a.

Third Section
Opening of Offices Outside the Head Office that Do Not Have Authority to Make Decisions Regarding the Acceptance and Rejection of Coverage/Participation and Claims

Article 109
(1) The Company is required to include every plan to open an office outside the head office that does not have authority as referred to in Article 105 paragraph (2) letter b in the Company's business plan. (2) The obligation as referred to in paragraph (1) is carried out in accordance with the Financial Services Authority Regulation regarding the business plan of non-bank financial service institutions.

Article 110
The management of offices outside the head office that do not have authority as referred to in Article 105 paragraph (2) letter b can be carried out by the Company or cooperated with other Parties.

Fourth Section
Closing of Offices Outside the Head Office that Have Authority to Make Decisions Regarding the Acceptance and Rejection of Coverage/Participation and Claims

Article 111
(1) A Company that will close an office outside the head office that has authority as referred to in Article 105 paragraph (2) letter a must first notify policyholders, insured parties, or participants regarding:
a. the plan to close the office outside the head office; and b. the procedure for settling rights and obligations.
(2) The procedure for settling rights and obligations as referred to in paragraph (1) letter b must be carried out based on statutory provisions and considering the interests of policyholders, insured parties, or participants.

Article 112
(1) The Company is required to report the closing of an office outside the head office as referred to in Article 111 paragraph (1) to the Financial Services Authority at the latest 10 (ten) working days calculated from the date of closing the office outside the head office. (2) The reporting of the closing of an office outside the head office as referred to in Article 111 paragraph (1) must be submitted by the Board of Directors together with the list of requirements for documents for the reporting of the closing of an office outside the head office that has authority to make decisions regarding the acceptance or rejection of coverage/participation and/or claims listed in the Appendix in Table XII which is an inseparable part of this Financial Services Authority Regulation.

Fifth Section
Administrative Sanctions

Article 113
(1) Violations of the provisions as referred to in Article 106 paragraph (1), paragraph (5), Article 107 paragraph (1), Article 108, Article 109 paragraph (1), Article 111, and/or Article 112 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; and/or b. downgrade of health level.
(2) Violations of the provisions as referred to in Article 107 paragraph (1), Article 112 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of Rp500,000.00 (five hundred thousand rupiah) per day of delay and at most Rp100,000,000.00 (one hundred million rupiah). (3) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been rectified, the Financial Services Authority provides a written warning sanction that ends automatically. (4) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Sixth Section
Re-evaluation of Principal Parties of the Company

Article 114
In addition to imposing administrative sanctions as referred to in Article 113 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's principal parties.

CHAPTER XIV
MEMBERSHIP IN ASSOCIATIONS

First Section
Obligation to Become a Member of an Association

Article 115
(1) Every Company is required to become a member of one of the Associations that matches its type of business.
(2) The Association as referred to in paragraph (1) must obtain written approval from the Financial Services Authority.
(3) To obtain approval as referred to in paragraph (2), the Association must submit an application to the Financial Services Authority together with the list of requirements for documents for the association approval application listed in the Appendix in Table XIII which is an inseparable part of this Financial Services Authority Regulation.

Second Section
Administrative Sanctions

Article 116
(1) A Company that violates the provisions as referred to in Article 115 paragraph (1) is subject to administrative sanctions in the form of:
a. written warning; and/or b. downgrade of health level.
(2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been rectified, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Third Section
Re-evaluation of Principal Parties

Article 117
In addition to imposing administrative sanctions as referred to in Article 116 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's principal parties.

CHAPTER XV
REGISTRATION OF INSURANCE AGENTS

First Section
Obligation to Register Insurance Agents

Article 118
(1) Insurance Agents are registered with the Financial Services Authority.
(2) Insurance Agents as referred to in paragraph (1) include Insurance Agents who work for business entities.
(3) Insurance Agents as referred to in paragraph (1) must at all times fulfill the provisions:
a. holding an agent certificate from the LSP in the insurance field that is still valid; b. holding an agency agreement with an Insurance Company and/or a Sharia Insurance Company;
c. not currently bound by an agency agreement with an Insurance Company and/or a Sharia Insurance Company that has the same business field and the same principles of business organization;
d. not previously subjected to sanctions by the Association according to its business field within the last 1 (one) year; and e. not previously sentenced for committing criminal acts in the field of financial service business and/or the economy based on a court decision that has had permanent legal force within the last 5 (five) years. (4) In fulfilling the registration obligation as referred to in paragraph (1), Insurance Agents must submit a registration application through an Insurance Company or a Sharia Insurance Company to the Association according to its business field, together with the list of requirements for documents for the insurance agent registration application listed in the Appendix in Table XIV which is an inseparable part of this Financial Services Authority Regulation. (5) The Association verifies the registration application as referred to in paragraph (4) with the fulfillment of requirements as referred to in paragraph (3). (6) In the event that the registration application has been verified as referred to in paragraph (5), the Association submits the verification results in the form of a list of data of prospective Insurance Agents who have met the requirements and provisions as referred to in paragraph (3) and paragraph (4) to the Financial Services Authority. (7) The verification results as referred to in paragraph (6) are submitted by the Association to the Financial Services Authority every month at the latest on the 10th (tenth). (8) The Financial Services Authority issues a registration certificate based on the verification results as referred to in paragraph (6), at the latest 20 (twenty) working days since the documents as referred to in paragraph (7) are received by the Financial Services Authority. (9) The registration certificate as referred to in paragraph (8) is submitted by the Financial Services Authority to the relevant Association. (10) In carrying out the verification of Insurance Agent registration, the Association formulates and establishes the mechanism for Insurance Agent registration applications. (11) The Company is prohibited from employing Insurance Agents who are not registered with the Financial Services Authority.

Second Section
Code of Ethics for Insurance Agents

Article 119
(1) The Association formulates a code of ethics for Insurance Agents.
(2) Insurance Agents are required to comply with the code of ethics as referred to in paragraph (1) and statutory provisions in the insurance field.
(3) The Company is required to ensure that Insurance Agents comply with the code of ethics and statutory provisions in the insurance field.
(4) To resolve agency issues, the Association forms an honor council.
(5) The Association submits reports of code of ethics violations by Insurance Agents to the Financial Services Authority.

Third Section
Insurance Agent Sustainability

Article 120
(1) Insurance Agents who have obtained a registration certificate as referred to in Article 118 paragraph (8) are required to follow continuing education or training organized by the Financial Services Authority, Associations, educational institutions, or training institutions in the insurance field at least 1 (one) time in 1 (one) year. (2) The registration certificate of Insurance Agents as referred to in Article 118 paragraph (8) can be revoked in the event that the Insurance Agent:
a. is declared to have violated the code of ethics by the relevant Association; b. commits disgraceful acts in the financial service field;
c. violates statutory provisions in the financial field;
d. does not meet the requirements for Insurance Agents as referred to in Article 118 paragraph (3); e. does not follow continuing education and training as referred to in paragraph (1); and/or f. voluntarily resigns. (3) The Financial Services Authority issues the revocation of the registration certificate as referred to in paragraph (1) based on:
a. proposal from the Association; or b. assessment by the Financial Services Authority.
(4) In the event that the revocation of the insurance agent registration certificate is proposed by the Association as referred to in paragraph (3) letter a, the Financial Services Authority issues the revocation of the registration certificate at the latest 20 (twenty) working days since the proposal is received by the Financial Services Authority. (5) The revocation of the registration certificate is submitted to the relevant Association.

Article 121
The Financial Services Authority has access to the data of Insurance Agents managed by the Association.

Fourth Section
Administrative Sanctions

Article 122
(1) A Company that violates the provisions as referred to in Article 118 paragraph (11), Article 119 paragraph (2), paragraph (3), and/or Article 120 paragraph (1) is subject to administrative sanctions in the form of:
a. written warning; and/or b. downgrade of health level.
(2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been rectified, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Fifth Section
Re-evaluation of Principal Parties

Article 123
In addition to imposing administrative sanctions as referred to in Article 122 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's principal parties.

CHAPTER XVI
CHANGE OF OWNERSHIP

First Section
General

Article 124
(1) For every change of ownership, the Company is required to first obtain approval from the Financial Services Authority.
(2) Changes of ownership as referred to in paragraph (1) include:
a. changes in share composition; b. Takeover;
c. addition of new shareholders; and
d. change of status of a closed Company to an open Company or vice versa.
(3) In the event that an open Company trades its shares on the stock exchange, approval of change of ownership as referred to in paragraph (1) must be obtained in the event of a change of Controller. (4) The plan for change of ownership as referred to in paragraph (1) must be included in the Company's business plan. (5) Fulfillment of requirements related to the inclusion of the plan for change of ownership in the business plan as referred to in paragraph (4) does not apply to Companies that will carry out a change of ownership to meet Minimum Equity as referred to in Article 56 and/or the minimum solvency ratio target as regulated in the Financial Services Authority Regulation regarding the financial health of Companies. (6) In the event that the change of ownership as referred to in paragraph (1) is caused by the addition of Paid-up Capital, the addition of Paid-up Capital is prohibited from being carried out except in the form of:
a. cash deposits; b. conversion/transfer of profit balances;
c. conversion/transfer of loans; and/or
d. bonus shares.
(7) Under certain conditions, the form of addition of Paid-up Capital can be carried out through other forms based on approval from the Financial Services Authority.

Article 125
(1) A Company that carries out a change of ownership through a Takeover is required to adjust to the provisions regarding Paid-up Capital as referred to in Article 12. (2) The obligation to adjust to the provisions regarding Paid-up Capital as referred to in paragraph (1) is exempted for Companies that will carry out:
a. change of ownership through a Takeover that is the result of inheritance; b. change of ownership to meet Minimum Equity as referred to in Article 56;
c. change of ownership in the restructuring of the Company group; and/or
d. change of ownership based on the assessment of the Financial Services Authority.
(3) Adjustment with the provisions regarding Paid-up Capital as referred to in paragraph (1) must be carried out at the time of carrying out the change of ownership.

Second Section
Approval of Change of Ownership

Article 126
(1) In the event that the change of ownership as referred to in Article 124 paragraph (2) results in a new Controller, the Financial Services Authority conducts an assessment of fitness and propriety to the prospective Controller. (2) To obtain approval for change of ownership as referred to in Article 124 paragraph (1), prospective shareholders or equivalents through the Board of Directors must submit an application for approval to the Financial Services Authority. (3) The application for approval of change of ownership as referred to in paragraph (2) is submitted together with:
a. the list of requirements for documents for the application for approval of change of ownership listed in the Appendix in Table XV which is an inseparable part of this Financial Services Authority Regulation; and b. an application for assessment of fitness and propriety for principal parties. (4) The assessment of fitness and propriety for principal parties of Sharia Insurance Companies or Sharia Reinsurance Companies and the format for the application for assessment of fitness and propriety as referred to in paragraph (3) letter b, are carried out in accordance with the Financial Services Authority Regulation regarding the assessment of fitness and propriety for principal parties of financial service institutions.

Article 127
(1) The Financial Services Authority provides approval or rejection of the application for approval as referred to in Article 126 paragraph (2) at the latest 20 (twenty) working days since the application for approval of change of ownership is received completely. (2) In providing 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 126 paragraph (3) letter a; b. analysis of the feasibility of the change of ownership plan;
c. assessment of fitness and propriety to prospective Controllers, if there is a change of ownership through a Takeover; and
d. analysis of the fulfillment of statutory provisions in the insurance field.
(3) To support the analysis process regarding the feasibility of the change of ownership plan as referred to in paragraph (2) letter b, the Financial Services Authority has the authority to order the Company to submit supporting documents other than the documents submitted as referred to in Article 126 paragraph (3) letter a. (4) The Board of Directors must submit the completeness of supporting documents as referred to in paragraph (3) at the latest 20 (twenty) working days since the date of the letter requesting document completeness from the Financial Services Authority. (5) In the event that the Company has submitted the completeness of documents as referred to in paragraph (3), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (1). (6) If within 20 (twenty) working days since the date of the letter requesting document completeness as referred to in paragraph (1), the Financial Services Authority has not received a response to the request for document completeness, the Company is considered to have canceled the change of ownership application. (7) In the event that the change of ownership application as referred to in paragraph (1) is approved, the Financial Services Authority issues an approval letter to the Company. (8) In the event that the Financial Services Authority rejects the change of ownership application as referred to in paragraph (1), the rejection is carried out in writing and accompanied by reasons for rejection.

Article 128
(1) In the event that the Company's change of ownership requires approval from the General Meeting of Shareholders (GMS), the Company that has obtained approval for change of ownership as referred to in Article 124 paragraph (1) from the Financial Services Authority must carry out a GMS that approves the change of ownership at the latest 60 (sixty) working days calculated from the date of the Financial Services Authority's approval letter. (2) If the time as referred to in paragraph (1) has passed and the Company has not carried out a GMS that approves the change of ownership, the Financial Services Authority has the authority to revoke the approval for change of ownership that was previously given.

Article 129
(1) The Company is required to report the implementation of change of ownership as referred to in Article 124 paragraph (1) to the Financial Services Authority at the latest 15 (fifteen) working days calculated from the date of receipt of the approval certificate and/or proof of receipt of notification from the competent authority. (2) The reporting of the implementation of change of ownership as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority together with the list of requirements for documents for the reporting of the implementation of change of ownership listed in the Appendix in Table XVI which is an inseparable part of this Financial Services Authority Regulation.

Third Section
Administrative Sanctions

Article 130
(1) Violations of the provisions as referred to in Article 124 paragraph (1), paragraph (3), paragraph (6), Article 125 paragraph (1), paragraph (3), and/or Article 129 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; and/or b. downgrade of health level.
(2) Violations of the provisions as referred to in Article 124 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of Rp100,000,000.00 (one hundred million rupiah). (3) Violations of the provisions as referred to in Article 129 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of Rp500,000.00 (five hundred thousand rupiah) per day of delay and at most Rp100,000,000.00 (one hundred million rupiah). (4) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been rectified, the Financial Services Authority provides a written warning sanction that ends automatically. (5) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Fourth Section
Re-evaluation of Principal Parties

Article 131
In addition to imposing administrative sanctions as referred to in Article 130 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's principal parties.

CHAPTER XVII
REPORTING

First Section
Reporting of Articles of Association Changes

Article 132
(1) A Company that carries out certain changes to its Articles of Association is required to report to the Financial Services Authority at the latest 15 (fifteen) working days since the date of the letter:
a. approval; b. ratification; or
c. receipt of notification,
from the competent authority.
(2) Certain changes to the Articles of Association as referred to in paragraph (1) consist of:
a. changes to the Company's name including in the event of a Merger or Consolidation of 2 (two) or more Companies where one of them has a Sharia Unit and the name used is the name of the Company that does not have a Sharia Unit; b. changes to the location of the Company's head office and/or the Sharia Unit's head office;
c. addition of Paid-up Capital for Companies in the form of a limited liability company including the addition of Paid-up Capital for open Companies that trade their shares on the stock exchange and do not result in a change of Controller; and/or
d. other changes to the Articles of Association based on the request of the Financial Services Authority.
(3) The reporting of changes to the Company's name as referred to in paragraph (2) letter a must be submitted by the Board of Directors to the Financial Services Authority together with the list of requirements for documents for the reporting of changes to the Company's name listed in the Appendix in Table XVII which is an inseparable part of this Financial Services Authority Regulation. (4) The reporting of changes to the location of the Company's head office as referred to in paragraph (2) letter b must be submitted by the Board of Directors to the Financial Services Authority together with the list of requirements for documents for the reporting of changes to the location of the Company's head office listed in the Appendix in Table XVIII which is an inseparable part of this Financial Services Authority Regulation. (5) The reporting of the addition of the Company's Paid-up Capital as referred to in paragraph (2) letter c must be submitted by the Board of Directors to the Financial Services Authority together with the list of requirements for documents for the reporting of the addition of the Company's Paid-up Capital listed in the Appendix in Table XIX which is an inseparable part of this Financial Services Authority Regulation.

(6) Reporting of changes to the articles of association caused by the addition of Paid-up Capital as referred to in paragraph (2) letter c is carried out by the Company in the event that the capital addition does not result in:
a. changes in share composition; b. Takeover; and/or
c. addition of new shareholders.

Second Section
Reporting of Changes to Board of Directors Members, Board of Commissioners Members, Sharia Supervisory Board Members, and Changes to Shareholder Names

Article 133
(1) Companies that carry out:
a. changes to Board of Directors members, Board of Commissioners members, and/or Sharia Supervisory Board members; and/or b. changes to shareholder names, are required to report to the Financial Services Authority no later than 15 (fifteen) working days calculated from the date of the receipt letter of notification from the competent authority.

(2) For Life Insurance Companies in the form of a joint business that carry out changes to Board of Directors members and/or Board of Commissioners members, reporting to the Financial Services Authority is required no later than 15 (fifteen) working days calculated from the date:
a. the notarized deed confirming the appointment for a notarial deed that contains deferred conditions for the appointment of the Board of Directors and/or Board of Commissioners members; or b. the notarial deed that does not contain deferred conditions for the appointment of Board of Directors members and/or Board of Commissioners members.

(3) Reporting of changes to Board of Directors members, Board of Commissioners members, and/or Sharia Supervisory Board members as referred to in paragraph (1) and paragraph (2) must be submitted by the Board of Directors to the Financial Services Authority together with the list of reporting document requirements for changes to the Company's Board of Directors members, Board of Commissioners members, and/or Sharia Supervisory Board members listed in the Appendix in Table XX which is an integral part of this Financial Services Authority Regulation.

(4) Reporting of changes to the Company's shareholder names as referred to in paragraph (1) letter b must be submitted by the Board of Directors to the Financial Services Authority together with the list of reporting document requirements for changes to shareholder names listed in the Appendix in Table XXI which is an integral part of this Financial Services Authority Regulation.

Third Section
Reporting of Address Changes

Article 134
(1) Companies are required to report address changes:
a. headquarters; and/or b. offices outside the headquarters that have authority as referred to in Article 105 paragraph (2) letter a, to the Financial Services Authority no later than 15 (fifteen) working days calculated from the date of the address change.

(2) Reporting of address changes for headquarters and offices outside the headquarters as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority together with the list of reporting document requirements for address changes for offices and offices outside the headquarters listed in the Appendix in Table XXII which is an integral part of this Financial Services Authority Regulation.

Fourth Section
Reporting of Working Capital Addition for Sharia Units

Article 135
(1) Companies are required to report the addition of working capital for Sharia Units to the Financial Services Authority no later than 15 (fifteen) working days calculated from the date of the working capital addition.

(2) Reporting of working capital addition for Sharia Units as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority together with a copy of the proof of placement of working capital in the Sharia Unit's account legalized by the bank.

Fifth Section
Administrative Sanctions

Article 136
(1) Violations of the provisions as referred to in Article 132 paragraph (1), Article 133 paragraph (1), paragraph (2), Article 134 paragraph (1), and/or Article 135 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; and/or b. downgrade of health level.

(2) Violations of the provisions as referred to in Article 132 paragraph (1), Article 133 paragraph (1), paragraph (2), Article 134 paragraph (1), Article 135 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and at most IDR 100,000,000.00 (one hundred million rupiah).

(3) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically.

(4) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Sixth Section
Re-evaluation of Key Parties

Article 137
In addition to imposing administrative sanctions as referred to in Article 136 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's key parties.

CHAPTER XVIII
COOPERATION IN SINGLE OWNERSHIP

First Section
General

Article 138
(1) Companies may carry out cooperation with other Companies that have ownership relationships.

(2) Cooperation as referred to in paragraph (1) is carried out by Companies that meet the conditions:
a. The Company is a PSP of another Company; b. The Company is owned by the same PSP or Controller; or
c. The Company is grouped in 1 (one) KUPA.

(3) Cooperation as referred to in paragraph (1) is excluded for:
a. capital; and b. Company management, which includes:

Board of Directors;
Board of Commissioners;
Experts;
Actuaries for Life Insurance Companies and Sharia Life Insurance Companies;
committees required to be formed by the Company; and
Executive Officials.

(4) Independent parties who are members of committees in Companies in 1 (one) ownership may hold concurrent positions as independent parties who are members of committees as referred to in paragraph (3) letter b number 5 in other Companies in the same ownership as referred to in paragraph (1).

(5) Cooperation as referred to in paragraph (1) does not result in the transfer of responsibility and risk from 1 (one) Company to another Company.

Article 139
In the event that a Company carries out cooperation as referred to in Article 138 paragraph (1) in the form of using the Company's office network at the same address, the Company must meet the requirements:
a. there is separation between the Company's office and other Companies' offices; and b. it does not cause operational risk and reputational risk for each Company.

Article 140
(1) Cooperation as referred to in Article 138 paragraph (1) is carried out with a written cooperation agreement.

(2) The written cooperation agreement as referred to in paragraph (1) covers at least:
a. the purpose and scope of the cooperation agreement; b. the duration of the cooperation agreement; and
c. the rights and obligations of each party at least:

knowledge transfer plan if the business cooperation involves the Company's human resources;
obligation to maintain the confidentiality and security of the Company's information and policyholders, insureds, or participants;
responsibility for losses; and
handling complaints from policyholders, insureds, or participants if the business cooperation relates to the Company's policyholders, insureds, or participants.

(3) Companies must carry out cooperation as referred to in Article 138 paragraph (1) in accordance with the cooperation agreement that has been made.

Second Section
Cooperation Approval

Article 141
(1) Companies carrying out cooperation as referred to in Article 138 paragraph (1) must first obtain cooperation approval from the Financial Services Authority.

(2) In the event of changes to the cooperation agreement, cooperating Companies must first obtain approval for the change in the cooperation agreement from the Financial Services Authority.

(3) To obtain cooperation approval as referred to in paragraph (1) or change of cooperation agreement approval as referred to in paragraph (2) from the Financial Services Authority, cooperating Companies must first include the cooperation plan in the Company's business plan.

(4) Companies that are PSPs of other Companies as referred to in Article 138 paragraph (2) letter a, Parent Companies, or Parent Company executors of Companies grouped in 1 (one) KUPA as referred to in Article 138 paragraph (2) letter c submit applications:
a. cooperation approval as referred to in paragraph (1); or b. change of cooperation agreement as referred to in paragraph (2), to the Financial Services Authority with a copy to other Companies that are bound in the cooperation agreement.

(5) In the event that cooperation is carried out by Companies that meet the conditions as referred to in Article 138 paragraph (2) letter b which are not part of a KUPA, the application for approval as referred to in paragraph (4) is submitted by one of the Companies.

(6) The application for approval as referred to in paragraph (4) is submitted by the Board of Directors to the Financial Services Authority accompanied by the list of document requirements for the cooperation approval application in ownership relationships listed in the Appendix in Table XXIII which is an integral part of this Financial Services Authority Regulation.

(7) The application for approval as referred to in paragraph (6) is submitted no later than 60 (sixty) days before the implementation of the cooperation.

Article 142
(1) The Financial Services Authority provides approval or rejection of the cooperation approval application as referred to in Article 141 paragraph (6) no later than 60 (sixty) days after all requirements are met and the document requirements for the application are received completely by the Financial Services Authority.

(2) In the event that additional scope of the cooperation agreement as referred to in Article 140 paragraph (2) is needed, document requirements as referred to in Article 141 paragraph (6), and/or explanations regarding the review of the approval application conducted by the Financial Services Authority, the 60 (sixty) day time limit is calculated from the time the Company completes the cooperation agreement, document requirements, and/or provides explanations requested by the Financial Services Authority.

(3) Approval or rejection as referred to in paragraph (1) applies to Companies carrying out cooperation.

(4) In the event of changes to the cooperation agreement, Companies are required to submit changes to the cooperation agreement to the Financial Services Authority no later than 7 (seven) working days from the change in the cooperation agreement.

Article 143
(1) Companies must carry out cooperation no later than 6 (six) months from the date of approval from the Financial Services Authority as referred to in Article 141 paragraph (1) and paragraph (2).

(2) If within the time as referred to in paragraph (1) the Company has not carried out cooperation, the approval from the Financial Services Authority that has been provided as referred to in Article 141 paragraph (1) and paragraph (2) is declared void and invalid.

Third Section
Reporting and Termination of Cooperation

Article 144
Companies carrying out cooperation are required to include reports on the realization of cooperation implementation in the business plan realization reports of each Company and submit them to the Financial Services Authority.

Article 145
(1) Companies may carry out termination of cooperation in ownership relationships before the cooperation period ends.

(2) Companies are required to report every plan for termination of cooperation to the Financial Services Authority with a copy to other Companies, accompanied by the document requirements for reporting termination of cooperation in ownership relationships listed in the Appendix in Table XXIV which is an integral part of this Financial Services Authority Regulation.

(3) Reports on plans for termination of cooperation as referred to in paragraph (2) must be submitted to the Financial Services Authority no later than 30 (thirty) working days before the implementation of the termination of cooperation.

Fourth Section
Administrative Sanctions

Article 146
(1) Violations of the provisions as referred to in Article 141 paragraph (1), paragraph (2), Article 142 paragraph (4), Article 144, and/or Article 145 paragraph (2), paragraph (3) are subject to administrative sanctions in the form of:
a. written warning; and/or b. downgrade of health level.

(2) Violations of the provisions as referred to in Article 141 paragraph (1) and/or paragraph (2) are subject to additional administrative sanctions in the form of an administrative fine of IDR 100,000,000.00 (one hundred million rupiah).

(3) Violations of the provisions as referred to in Article 145 paragraph (3) are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and at most IDR 100,000,000.00 (one hundred million rupiah).

(4) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically.

(5) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Fifth Section
Re-evaluation of Key Parties

Article 147
In addition to imposing administrative sanctions as referred to in Article 146 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's key parties.

CHAPTER XIX
SUBMISSION OF LICENSING, APPROVAL, AND REPORTING APPLICATIONS ELECTRONICALLY

First Section
General

Article 148
(1) Applications for licensing, approval, or reporting as referred to in Article 16 paragraph (3), Article 17 paragraph (3), Article 18 paragraph (1), Article 21 paragraph (1), Article 24 paragraph (4), Article 25 paragraph (2), Article 29 paragraph (2), Article 31 paragraph (2), Article 32 paragraph (1), Article 39 paragraph (3), Article 40 paragraph (3), Article 42 paragraph (2), Article 44 paragraph (2), Article 46 paragraph (2), Article 48 paragraph (2), Article 67 paragraph (2), Article 68 paragraph (2), Article 69 paragraph (2), Article 70 paragraph (1), Article 82 paragraph (3), Article 83 paragraph (2), Article 102 paragraph (2), Article 107 paragraph (2), Article 112 paragraph (2), Article 115 paragraph (3), Article 126 paragraph (3), Article 127 paragraph (4), Article 129 paragraph (2), Article 132 paragraph (3), paragraph (4), paragraph (5), Article 133 paragraph (3), paragraph (4), Article 134 paragraph (2), Article 135 paragraph (2), Article 141 paragraph (6), and/or 142 paragraph (2), must be submitted to the Financial Services Authority electronically through the Financial Services Authority's data communication network system.

(2) With the submission of applications for licensing, approval, and reporting to the Financial Services Authority electronically as referred to in paragraph (1), Companies do not need to submit printed documents.

(3) Companies are required to keep printed documents of the completeness of licensing, approval, and reporting documents that have been submitted electronically as referred to in paragraph (1).

(4) Companies are required to be accountable for the truth and correspondence of every document submitted electronically with the printed documents owned by the Company.

(5) In the event of need, the Financial Services Authority may conduct verification and/or validation of the truth and fairness of the printed documents of licensing, approval, and reporting applications as referred to in paragraph (3) that have been submitted electronically by the Company.

(6) Companies are required to provide printed documents of licensing, approval, and reporting applications as referred to in paragraph (3) that have been submitted electronically by the Company during the implementation of verification and/or validation by the Financial Services Authority as referred to in paragraph (5).

(7) All documents submitted electronically as referred to in paragraph (1) have legal force equal to printed documents.

(8) In the event that the electronic system as referred to in paragraph (1) experiences technical disturbances, the submission of applications for licensing, approval, or reporting is submitted to the Financial Services Authority offline.

(9) Further provisions regarding applications for licensing, approval, and reporting electronically as referred to in paragraph (1) are established by the Financial Services Authority.

Second Section
Administrative Sanctions

Article 149
(1) Violations of the provisions as referred to in Article 148 paragraph (3), paragraph (4), and/or paragraph (6) are subject to administrative sanctions in the form of:
a. written warning; and/or b. downgrade of health level.

(2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically.

(3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Third Section
Re-evaluation of Key Parties

Article 150
In addition to imposing administrative sanctions as referred to in Article 149 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's key parties.

CHAPTER XX
OTHER PROVISIONS

Article 151
The Financial Services Authority, based on certain considerations, may provide approval or policies that differ from this Financial Services Authority Regulation.

CHAPTER XXI
TRANSITIONAL PROVISIONS

Article 152
At the time this Financial Services Authority Regulation takes effect, applications for approval that have been received and have not yet obtained approval or rejection from the Financial Services Authority are processed in accordance with Financial Services Authority Regulation Number 67/POJK.05/2016 concerning Business Licensing and Institutional Requirements for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies.

Article 153
At the time the policy guarantee program is in effect, provisions regarding requirements to attach the initial report of the Guarantee Fund along with proof of placement of the Guarantee Fund as referred to in Article 13 only apply to:
a. Insurance Companies and Sharia Insurance Companies that do not meet the requirements to become participants of the policy guarantee program; or b. Reinsurance Companies and Sharia Reinsurance Companies that will apply for business licenses.

Article 154
(1) Insurance Agents who have valid registration marks listed in the Association's list before this Financial Services Authority Regulation is promulgated must re-register with the Financial Services Authority.

(2) To fulfill the provisions as referred to in paragraph (1), the Association must submit a list of Insurance Agents who still have valid registration marks from the Association and are active as Insurance Agents in Companies to the Financial Services Authority no later than 3 (three) months from the promulgation of this Financial Services Authority Regulation.

Article 155
Business entities of Insurance Agents that have obtained business licenses or registration marks before this Financial Services Authority Regulation is promulgated may continue to conduct their business.

Article 156
The obligation to adjust concurrent positions for Companies that have Board of Directors members, Board of Commissioners members, and/or Sharia Supervisory Board members who still hold concurrent positions or employees as referred to in Article 77, Article 78, and Article 79, must be resolved no later than 1 (one) year from the time this Financial Services Authority Regulation takes effect.

Article 157
The obligation to adjust concurrent positions for Companies that have Experts who still hold concurrent positions as members of the Board of Directors, Board of Commissioners, or Sharia Supervisory Board, as referred to in Article 88 paragraph (5), paragraph (6), Article 89 paragraph (5), paragraph (6), Article 90 paragraph (5), paragraph (6), and/or Article 91 paragraph (3), paragraph (4), must be resolved no later than 6 (six) months from the time this Financial Services Authority Regulation takes effect.

Article 158
(1) Violations of Financial Services Authority Regulation Number 67/POJK.05/2016 concerning Business Licensing and Institutional Requirements for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 300, Supplement to the State Gazette of the Republic of Indonesia Number 5990) that are known at the time this Financial Services Authority Regulation takes effect are subject to sanctions based on the provisions in Financial Services Authority Regulation Number 67/POJK.05/2016 concerning Business Licensing and Institutional Requirements for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 300, Supplement to the State Gazette of the Republic of Indonesia Number 5990).

(2) Companies subject to administrative sanctions based on Financial Services Authority Regulation Number 67/POJK.05/2016 concerning Business Licensing and Institutional Requirements for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 300, Supplement to the State Gazette of the Republic of Indonesia Number 5990) and unable to correct the violation are subject to administrative sanctions in accordance with the provisions in this Financial Services Authority Regulation.

Article 159
(1) Violations of provisions regarding concurrent positions of Board of Directors, Board of Commissioners, and/or Sharia Supervisory Board members as referred to in Article 12 paragraph (1), paragraph (2), Article 23, Article 33, and/or Article 41 paragraph (1), paragraph (2) of Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 306, Supplement to the State Gazette of the Republic of Indonesia Number 5996) as amended by Financial Services Authority Regulation Number 43/POJK.05/2019 concerning Amendments to Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2019 Number 271, Supplement to the State Gazette of the Republic of Indonesia Number 6450), that are known at the time this Financial Services Authority Regulation takes effect are subject to sanctions based on the provisions in Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 306, Supplement to the State Gazette of the Republic of Indonesia Number 5996) as amended by Financial Services Authority Regulation Number 43/POJK.05/2019 concerning Amendments to Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2019 Number 271, Supplement to the State Gazette of the Republic of Indonesia Number 6450).

(2) Companies subject to administrative sanctions based on Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 306, Supplement to the State Gazette of the Republic of Indonesia Number 5996) as amended by Financial Services Authority Regulation Number 43/POJK.05/2019 concerning Amendments to Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2019 Number 271, Supplement to the State Gazette of the Republic of Indonesia Number 6450) and unable to correct the violation are subject to administrative sanctions in accordance with the provisions in this Financial Services Authority Regulation.

CHAPTER XXII
CLOSING PROVISIONS

Article 160
At the time this Financial Services Authority Regulation takes effect, provisions regarding:
a. Financial Services Authority Regulation Number 67/POJK.05/2016 concerning Business Licensing and Institutional Requirements for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 300, Supplement to the State Gazette of the Republic of Indonesia Number 5990); and

b. provisions regarding dual positions of members of the Board of Directors, Board of Commissioners, and DPS, as regulated in Article 12 paragraph (1) and paragraph (2), Article 23, Article 33, Article 41 paragraph (1) and paragraph (2) of the Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 306, Supplement to the State Gazette of the Republic of Indonesia Number 5996) as amended by the Financial Services Authority Regulation Number 43/POJK.05/2019 concerning Amendment to the Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2019 Number 271, Supplement to the State Gazette of the Republic of Indonesia Number 6450), are revoked and declared invalid.

Article 161
Provisions regarding Minimum Equity as regulated in Article 33 of the Financial Services Authority Regulation Number 71/POJK.05/2016 concerning Financial Health of Insurance Companies and Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 304, Supplement to the State Gazette of the Republic of Indonesia Number 5994) as amended by the Financial Services Authority Regulation Number 5 of 2023 concerning the Second Amendment to the Financial Services Authority Regulation Number 71/POJK.05/2016 concerning Financial Health of Insurance Companies and Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2016 (State Gazette of the Republic of Indonesia Year 2023 Number 8/OJK, Supplement to the State Gazette of the Republic of Indonesia Number 33/OJK), and Article 37 of the Financial Services Authority Regulation Number 72/POJK.05/2016 concerning Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles (State Gazette of the Republic of Indonesia Year 2016 Number 305, Supplement to the State Gazette of the Republic of Indonesia Number 5995) as amended by the Financial Services Authority Regulation Number 6 of 2023 concerning the Second Amendment to the Financial Services Authority Regulation Number 72/POJK.05/2016 concerning Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles (State Gazette of the Republic of Indonesia Year 2023 Number 9/OJK, Supplement to the State Gazette of the Republic of Indonesia Number 34/OJK), are revoked and declared invalid as of December 31, 2026.

Article 162
This Financial Services Authority Regulation comes into force on the date of its promulgation.

This copy is in accordance with the original
Legal Director 1
Legal Department
Mufli Asmawidjaja

To ensure that everyone knows 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 December 20, 2023
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,
MAHENDRA SIREGAR

Promulgated in Jakarta on December 22, 2023
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2023 NUMBER 41/OJK signed

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 23 OF 2023
CONCERNING
BUSINESS LICENSING AND INSTITUTIONAL REQUIREMENTS FOR INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES

I. GENERAL

Following the establishment of Law Number 40 of 2014 concerning Insurance, a new era has been brought to the Indonesian insurance industry. In order to fulfill the mandate of Law Number 40 of 2014 concerning Insurance, the Financial Services Authority has formulated and established many new regulations expected to support the development of the insurance industry in Indonesia. However, along with the continuous growth of the economy and industry, a policy direction is needed to support and create a healthy insurance industry ecosystem so that it can have strong competitiveness. One of the policies expected to support and create a healthy insurance industry ecosystem includes adjusting provisions related to institutional and business licensing to create a stronger insurance industry in Indonesia with greater capital, capable of absorbing larger risk capacities, being healthier and more competitive, and able to provide faster and more accurate services to all residents and the Indonesian public.

In order to realize the creation of a strong and healthy insurance industry ecosystem, the Financial Services Authority deems it necessary to strengthen the insurance industry in several aspects, namely strengthening in the capital aspect, strengthening in the institutional aspect, and strengthening in the operational aspect of business implementation. Capital strengthening is carried out by adjusting provisions on minimum paid-up capital for both new business actors and business actors who have obtained business licenses before this Financial Services Authority Regulation was established. Strengthening in the institutional aspect is carried out by adjusting provisions regarding requirements and criteria for Controllers, foreign workers, Experts, and Actuaries of Companies. Meanwhile, strengthening in the operational aspect of business implementation is carried out by establishing new policies regarding synergy and cooperation in one ownership (sharing function in one group). With these policy and regulatory adjustments, it is hoped that a healthier and stronger insurance industry will be created, business scale expansion will be facilitated, and insurance business actors will be assisted in competing to provide the best services and protection for the Indonesian public.

In addition, with the establishment of Government Regulation Number 14 of 2018 concerning Foreign Ownership in Insurance Companies as amended by Government Regulation Number 3 of 2020 concerning Amendment to Government Regulation Number 14 of 2018 concerning Foreign Ownership in Insurance Companies, it is necessary to regulate implementation provisions regarding the fulfillment of criteria for Foreign Legal Entities that can own or make direct investments in insurance companies in Indonesia, including provisions requiring reporting on the proportion of foreign ownership of insurance companies to the Financial Services Authority. Policies related to foreign ownership restrictions, both qualitatively and quantitatively, aim to ensure that investors and insurance business actors in Indonesia are investors with adequate and strong capacity in terms of capital and knowledge in the insurance field. This Financial Services Authority Regulation regulates criteria for foreign ownership by Foreign Legal Entities and ownership by Indonesian legal entities, identification and reporting of foreign ownership, and calculation of foreign ownership both directly and indirectly.

This Financial Services Authority Regulation is an improvement of Financial Services Authority Regulation Number 67/POJK.05/2016 concerning Business Licensing and Institutional Requirements for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies. The improvements include mechanisms for reporting and identifying foreign ownership, increasing paid-up capital requirements at the time of establishment, adjusting minimum equity provisions for Companies that already have business licenses at the time this Financial Services Authority Regulation was established, licensing application mechanisms, approvals, and reporting by Companies, PSP/Controllers, Sharia Units, organizational structure, foreign workers, Experts, actuaries, internal auditors, offices outside the headquarters, insurance agent registration mechanisms, ownership changes, reporting, mergers and consolidations, cooperation in one ownership, e-licensing, and sanctions.

II. ARTICLE BY ARTICLE

Article 1
It is clear enough.

Article 2
It is clear enough.

Article 3
Paragraph (1)
Letter a
It is clear enough.
Letter b
The need for similar criteria and similar business fields is intended to allow for the transfer of knowledge and technology from all aspects of insurance and reinsurance business implementation from Foreign Legal Entities to Companies in Indonesia. This transfer of knowledge and technology is not only in the form of expertise in implementing insurance or reinsurance business with specific fields or business principles, but is interpreted broadly, namely including the implementation of insurance/reinsurance business, corporate governance, risk management, underwriting, marketing, and product development.

Paragraph (2)
It is clear enough.

Article 4
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
It is clear enough.
Letter b
Provisions for transactions on the stock exchange are implemented in accordance with regulations in the capital market field, including Financial Services Authority Regulations concerning the implementation of activities in the capital market and Financial Services Authority Regulations concerning securities transactions. Letter c Number 1 It is clear enough. Number 2 See explanation of paragraph (2) letter b.

Article 5
Paragraph (1)
Letter a
What is meant by "Companies having similar businesses" are insurance companies with other insurance companies, or reinsurance companies with other reinsurance companies. What is meant by "similar Insurance Business fields" are general insurance companies with other general insurance companies including general insurance companies with Sharia principles, or life insurance companies with other life insurance companies including life insurance companies with Sharia principles, or reinsurance companies with other reinsurance companies. Letter b The amount of direct investment in the Company is the investment of Foreign Legal Entities viewed from the Company's paid-up capital. Example: There is ownership of an Insurance Company by an Indonesian legal entity of 50% (fifty percent), then there is ownership of a Foreign Legal Entity in the aforementioned Indonesian legal entity of 50% (fifty percent), it can be interpreted that the Foreign Legal Entity has an ownership proportion of 25% (twenty-five percent) in the Insurance Company, so the component of equity calculation by the Foreign Legal Entity is only 25% (twenty-five percent) of the direct investment in the aforementioned Indonesian legal entity.

(in thousands of rupiah)
Company Direct Shareholder Minimum Equity
PT A
Indonesian Legal Entity A
50% (fifty percent)
100,000
100,000
(100,000x1)
Foreign Legal Entity B
50% (fifty percent)
100,000
500,000
(100,000x5)
Letter c
Examples of internationally recognized rating agencies include Standard & Poor's (S&P), Moody's Investor Service, and Fitch Ratings.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.

Article 6
Paragraph (1)
Letter a
It is clear enough.
Letter b
What is meant by "Foreign Ownership in the Company by foreign citizens indirectly" is the ownership of shares by foreign citizens over an Indonesian legal entity that owns the Company at the second layer and onwards. Letter c It is clear enough. Paragraph (2) Letter a It is clear enough.

Company Direct Shareholder Minimum Equity Indirect Shareholder Minimum Equity PT A Indonesian Legal Entity A 50% (fifty percent) 100,000 100,000 (100,000x1) Foreign Legal Entity C 50% (fifty percent) 125,000 (50% x 50% x 100,000 x 5) Indonesian Citizen 50% (fifty percent) Indonesian Legal Entity B 50% (fifty percent) 100,000 100,000 (100,000x1)

Letter b
Number 1
Example calculation:
Name Company First Degree Second Degree Third Degree Next Degree PT Insurance X XYX Inc. – Foreign Legal Entity, 80% PT YYY – Indonesian Legal Entity, 10% XX Corp. – Foreign Legal Entity, 60% Ms. W – Indonesian Citizen, 60% VW Corp. – Foreign Legal Entity, 40% Mr. X – Indonesian Citizen, 40% PT YXY – Indonesian Legal Entity, 10% PT ZYZ – Indonesian Legal Entity, 70% XYZ Corp. – Foreign Legal Entity, 55% PT ZZW – Indonesian Legal Entity, 45% etc VV Corp. – Foreign Legal Entity, 30% PT YYX – Indonesian Legal Entity, 70% Mr. Y – Indonesian Citizen, 60% Mr. Z – Indonesian Citizen, 40% Ms. V – Foreign Citizen, 30% a. Foreign ownership:
= XYX Inc. + (PT YYY x XX Corp. x VW Corp) +
(PT YXY x PT ZYZ x XYZ Corp) + (PT YXY x
VV Corp x Ms. V)
= 80% + (10% x 60% x 40%) + (10% x 70% x
55%) + (10% x 30% x 30%)
= 87.15% b. Local ownership:
= (PT YYY x XX Corp x Ms. W) + (PT YYY x
Mr. X) + (PT YXY x PT ZYZ * PT ZZW) + (PT
YXY x VV Corp. x PT YYX x Mr. Y) + (PT YXY x VV Corp x PT YYX x Mr. Z) = (10% x 60% x 60%) + (10% x 40% ) + (10% x 70% x 45%) + (10% x 30% x 70% x 60%) + (10% x 30% x 70% x 40%) = 12.85% Number 2 It is clear enough.

Article 7
It is clear enough.

Article 8
Paragraph (1)
The amount of direct investment in the Company is calculated based on the value of shares obtained by the Indonesian legal entity from the Company.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.

Article 9
Paragraph (1)
Good financial performance is reflected in profits booked in the last 2 (two) periods based on annual financial reports audited by public accountants registered with the Financial Services Authority. Paragraph (2) It is clear enough.

Article 10
Paragraph (1)
Letter a
What is meant by "loan" is all forms of provision of funds or claims that can be equated with it based on loan agreements between the lender and other parties, including those organized based on Sharia principles. The prohibition on funding sources for paid-up capital in the form of loans also applies to loans originating from shareholders, including from the ultimate shareholder, in order to support going concern and the Company's financial health. Letter b The definition of money laundering refers to regulations concerning the implementation of anti-money laundering programs, prevention of terrorism financing, and prevention of proliferation financing of weapons of mass destruction in the financial services sector. Prevention of terrorism financing and proliferation financing of weapons of mass destruction in the financial services sector applies up to the ultimate shareholder. Paragraph (2) Letter a It is clear enough. Letter b It is clear enough. Letter c Control is measured among others by the ability to appoint directors and the board of commissioners of the legal entity.

Article 11
Paragraph (1)
This provision is intended so that the Company does not use a name that causes interpretation that the Company's name is not an Insurance Company, Reinsurance Company, Sharia Insurance Company, or Sharia Reinsurance Company. Paragraph (2) It is clear enough. Paragraph (3) It is clear enough. Paragraph (4) The Company's articles of association that have been approved, including amendments to the articles of association that have been approved by the competent authority. Paragraph (5) What is meant by "other Company documents" are documents used by the Company in conducting business activities. This obligation includes the use of the Company's systems or infrastructure, both electronically and non-electronically. Paragraph (6) It is clear enough. Paragraph (7) Fulfillment of written instructions follows the time limit stated in the Financial Services Authority letter regarding written instructions.

Article 12
It is clear enough.

Article 13
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
Implementation or scope of affiliated parties refers to Financial Services Authority Regulations concerning the financial health of Companies.
Letter b
It is clear enough.
Paragraph (3)
Letter a
See explanation of paragraph (2) letter a.
Letter b
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
Excess Guarantee Funds take into account the adjustment of Guarantee Funds as regulated in Financial Services Authority Regulations concerning the financial health of Companies. Paragraph (6) It is clear enough.

Article 14
It is clear enough.

Article 15
Re-evaluation of principal parties is carried out in accordance with Financial Services Authority Regulations concerning re-evaluation for principal parties of financial service institutions.

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
Paragraph (1)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
What is meant by "not reducing the rights of policyholders or insured parties" is that the implementation of conversion cannot reduce the rights of policyholders or insured parties and/or policyholders or insured parties have the right to be informed of all information regarding the implementation of such conversion along with the impact, benefits, or risks of the conversion on the coverage held by the policyholder or insured party. Letter d It is clear enough. Letter e All processes and mechanisms for the transfer of insurance portfolios refer to the regulations in Financial Services Authority Regulations concerning the implementation of Company business. Paragraph (2) It is clear enough. Paragraph (3) It is clear enough. Paragraph (4) It is clear enough.

Article 21
It is clear enough.

Article 22
It is clear enough.

Article 23
It is clear enough.

Article 24
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
What is meant by "analysis of document completeness" is the correspondence of documents with the requirements stipulated in regulations.
Letter b
Verification of funding sources and capital deposits is carried out among others by verifying the receipt of capital deposits by the Company and verifying financial transactions related to capital deposits originating from transactions within the business group (intra-group transaction). Letter c It is clear enough. Letter d It is clear enough. Letter e It is clear enough. Letter f It is clear enough. Paragraph (3) It is clear enough. Paragraph (4) It is clear enough. Paragraph (5) It is clear enough. Paragraph (6) What is meant by "cancelling the business license application" is a business license application cancelled by the Company or an application deemed cancelled due to the expiration of the time limit for submitting responses to requests for document completeness. Paragraph (7) It is clear enough. Paragraph (8) It is clear enough. Paragraph (9) The disbursement of Guarantee Funds does not apply to the cancellation or rejection of conversion business licenses because the placement of Guarantee Funds has been carried out by the entity of the Insurance Company or Reinsurance Company applying for the conversion business license. Paragraph (10) It is clear enough. Paragraph (11) It is clear enough.

Article 25
It is clear enough.

Article 26
It is clear enough.

Article 27
See explanation of Article 15.

Article 28
Paragraph (1)
It is clear enough.
Paragraph (2)
Countries included in the Republic of Indonesia include:
a. The Republic of Indonesia as a direct shareholder in the Company; and b. State-Owned Enterprises as shareholders of the Company whose share ownership is owned by the State of at least 51% (fifty-one percent) of all share nominal values.

Article 29
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
What is meant by "not a shareholder" is a Party that indirectly has the ability to determine and/or influence the actions of the Board of Directors and/or Board of Commissioners. Paragraph (4) Letter a Calculation of cumulative share ownership among shareholders based on ownership relationship results is used as the basis for appointing PSPs representing shareholders cumulatively. Ownership relationships occur if between shareholders:
a. individuals with legal entities; or b. legal entities with legal entities, there is a related ownership in that legal entity with an ownership amount that at least meets the threshold as PSP. Tracing of ownership relationships is carried out up to the ultimate shareholder. Example:
Mr. A owns shares of Company X of 10% (ten percent) of the capital of Company X.
PT B, a non-financial legal entity, owns shares of Company X of 25% (twenty-five percent) of the capital of Company X.

Mr. A owns PT B of 30% (thirty percent) of the capital of PT B, so between Mr. A and PT B there is a connection due to ownership relationships.
Letter b
What is meant by "family relationships up to the second degree" are:
a. biological/step/adopted parents; b. biological/step/adopted siblings along with their husbands or wives;
c. biological/step/adopted children;
d. biological/step/adopted grandparents; e. biological/step/adopted grandchildren; f. biological/step/adopted siblings of parents along with their husbands or wives; g. husbands/wives; h. parents-in-law;
i. siblings-in-law;
j. husbands/wives of biological/step/adopted children; k. grandparents of husbands/wives;
l. husbands/wives of biological/step/adopted grandchildren; and
m. biological/step/adopted siblings of husbands/wives along with their husbands or wives.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.

Article 30
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
See explanation of Article 11 paragraph (7).
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.

Article 31
It is clear enough.

Article 32
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
Example: PT. A has passed the competence and propriety assessment in order to become a Controller at PT. Insurance B, subsequently when PT. A no longer becomes a Controller at PT. Insurance B, the competence and propriety assessment results of the Controller held by PT. A become invalid.

Article 33
It is clear enough.

Article 34
It is clear enough.

Article 35
See explanation of Article 15.

Article 36
Letter a
The resilience and competitiveness of the insurance industry require support from a strong insurance structure as a basic framework to support the national economy. The ability to face challenges and demands for innovation in technology-based products and services is required so that the insurance industry has greater adaptive capacity. For this reason, efforts are needed through insurance industry consolidation, both in terms of increasing capital and accelerating consolidation. Letter b It is clear enough. Letter c It is clear enough.

Article 37
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
Letter a
It is clear enough.
Letter b
What is meant by "will become PSP" is a party that at the time of Takeover has not yet become a PSP of the Company.
Paragraph (4)
It is clear enough.

Article 38
It is clear enough.

Article 39
It is clear enough.

Article 40
It is clear enough.

Article 41
It is clear enough.

Article 42
It is clear enough.

Article 43
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
What is meant by "change of name of Sharia Unit" is the change of name of the Sharia Unit of the Company merging into the Company receiving the Merger, in the event that the Company receiving the Merger does not have a Sharia Unit.

Article 44
It is clear enough.

Article 45
It is clear enough.

Article 46
It is clear enough.

Article 47
It is clear enough.

Article 48
It is clear enough.

Article 49
It is clear enough.

Article 50
It is clear enough.

Article 51
It is clear enough.

Article 52
See explanation of Article 15.

Article 53
Paragraph (1)
It is clear enough.
Paragraph (2)
What is meant by "significantly increasing business scale" includes among others through the fulfillment of equity.

Article 54
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
What is meant by "Parent Company" is a Company that consolidates and directly controls all activities of the KUPA.
What is meant by "Implementing Parent Company" is a Company that has shareholders who are the same as the Child Company, where the aforementioned shareholders are not the Parent Company. Letter b It is clear enough. Paragraph (3) It is clear enough. Paragraph (4) It is clear enough. Paragraph (5) It is clear enough.

Article 55
Paragraph (1)
Letter a
It is clear enough.
Letter b
The document appointing the Implementing Parent Company is signed by the President Director or 1 (one) or more members of the Board of Directors representing the PSP, for PSPs in the form of limited liability companies, or parties who

equivalent for PSPs other than limited liability companies or foreign legal entity PSPs.

Letter c
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Examples of changes in the structure of the Holding Company (KUPA) include, for example, in relation to the Merger or Consolidation of the Holding Company and the addition or divestment of subsidiary companies within the Holding Company.

Paragraph (5)
Clear enough.

Article 56

Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
The purpose of grouping Companies is to ensure the effectiveness of the supervision strategy by the Financial Services Authority (OJK), so that supervision is more efficient and supports more accurate performance and risk analysis. This supervision strategy may include limitations on business lines, Insurance or Sharia Insurance products that can be marketed, marketing channels that can be used, and others.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Article 57
Clear enough.

Article 58
Clear enough.

Article 59
Clear enough.

Article 60
Clear enough.

Article 61
The term "certain conditions" includes, for example, the process of Company Merger and Consolidation that has not been completed by the deadline for meeting the minimum Equity requirement.

Article 62
Clear enough.

Article 63
See the explanation of Article 15.

Article 64
Clear enough.

Article 65
Clear enough.

Article 66
Clear enough.

Article 67
Clear enough.

Article 68
Clear enough.

Article 69
Clear enough.

Article 70
Clear enough.

Article 71
Clear enough.

Article 72
See the explanation of Article 15.

Article 73
Clear enough.

Article 74
Clear enough.

Article 75
See the explanation of Article 15.

Article 76
Clear enough.

Article 77

Paragraph (1)
The term "insurance company" refers to Companies, insurance brokerage companies, reinsurance brokerage companies, and insurance loss assessors.
The term "other company" refers to companies other than insurance companies.

Paragraph (2)
The term "subsidiary company" refers to a company whose share capital is partially or wholly owned by the Company or a Company that makes an investment in another business entity at the first level. The purpose of regulating the prohibition of concurrent positions for the Chief Director of the Company in this provision is that the Chief Director of the Company is expected to dedicate their energy, thoughts, and time fully to the Company, so that it is not possible to hold concurrent jobs or positions in other companies, including subsidiary companies.

Article 78

Paragraph (1)
An example of this provision is that members of the Board of Commissioners of a General Insurance Company cannot hold concurrent positions as Commissioners, members of the Board of Directors, or members of the Sharia Supervisory Board (DPS) at other General Insurance Companies. Explanation of insurance companies see the explanation of Article 77 paragraph (1).

Paragraph (2)
Concurrent positions that are permitted are that members of the Board of Commissioners of General Insurance Company XYZ can only hold a maximum of 3 (three) concurrent positions, for example:
a. as members of the Board of Commissioners of a Reinsurance Company; b. as members of the Board of Commissioners of Life Insurance Company ABC; and
c. as members of the DPS at a Sharia Life Insurance Company.

Paragraph (3)
Clear enough.

Article 79

Paragraph (1)
Clear enough.

Paragraph (2)
The term "other financial service institutions" includes, among others, other Sharia Insurance Companies and Sharia Reinsurance Companies, banks, securities companies, financing companies, and pension funds. Explanation of insurance companies see the explanation of Article 77 paragraph (1).

Article 80

Paragraph (1)
Provisions regarding Professional Certification Institutions (LSP) refer to the Financial Services Authority Regulation regarding the management of professional certification institutions in the financial services sector.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Article 81

Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Paragraph (8)
See the explanation of Article 11 paragraph (7).

Paragraph (9)
Clear enough.

Article 82
Clear enough.

Article 83
Clear enough.

Article 84
Clear enough.

Article 85
Clear enough.

Article 86
Clear enough.

Article 87
See the explanation of Article 15.

Article 88

Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
See the explanation of Article 80 paragraph (1).

Letter b
Clear enough.

Letter c
Clear enough.

Paragraph (3)
Letter a
Clear enough.

Letter b
The term "business complexity" includes, among others, the scope and number of the Company's office network.

Letter c
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
The purpose of prohibiting the appointment of Experts who hold concurrent positions as members of the Board of Directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, or employees at the same Company or other companies is so that the Experts can provide assessment results and professional judgment appropriate to their expertise without being influenced by responsibilities in the concurrent positions.

Paragraph (6)
The term "insurance technical functions" refers to actuarial functions, product development and monitoring, underwriting, and/or claims.

Article 89

Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
See the explanation of Article 80 paragraph (1).

Letter b
Clear enough.

Letter c
Clear enough.

Paragraph (3)
Letter a
Clear enough.

Letter b
See the explanation of Article 88 paragraph (3) letter b.

Letter c
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
See the explanation of Article 88 paragraph (5).

Paragraph (6)
See the explanation of Article 88 paragraph (6).

Article 90

Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
See the explanation of Article 80 paragraph (1).

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Paragraph (3)
Letter a
Clear enough.

Letter b
See the explanation of Article 88 paragraph (3) letter b.

Letter c
Clear enough.

Paragraph (4)
Letter a
See the explanation of Article 80 paragraph (1).

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Clear enough.

Paragraph (5)
See the explanation of Article 88 paragraph (5).

Paragraph (6)
The term "reinsurance technical functions" refers to actuarial functions, product development and monitoring, underwriting, and/or claims.

Article 91

Paragraph (1)
The term "Experts specifically assigned to the Sharia Unit" refers to Experts who do not hold concurrent positions at the Insurance Company and Reinsurance Company that has the Sharia Unit.

Paragraph (2)
Letter a
See the explanation of Article 80 paragraph (1).

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Clear enough.

Letter f
Clear enough.

Letter g
Clear enough.

Paragraph (3)
See the explanation of Article 88 paragraph (5).

Paragraph (4)
See the explanation of Article 88 paragraph (6).

Article 92

Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Letter a
See the explanation of Article 80 paragraph (1).

Letter b
Clear enough.

Letter c
Clear enough.

Article 93

Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Clear enough.

Letter b
See the explanation of Article 88 paragraph (3) letter b.

Paragraph (3)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
The term "other company" includes pension funds.

Paragraph (4)
Clear enough.

Article 94
Clear enough.

Article 95
Clear enough.

Article 96
Clear enough.

Article 97
Clear enough.

Article 98
Clear enough.

Article 99
Clear enough.

Article 100

Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
The term "does not meet the criteria" includes, among others:
a. does not meet integrity requirements, which may include:

having a negative track record, including being a party prohibited from becoming a main party in a financial service institution; and
currently receiving sanctions from associations, professional associations, in the financial services sector, institutions, or relevant authorities; and
b. does not meet financial reputation criteria, including having non-performing loans, financing, and/or being declared bankrupt, which are recorded in negative data and information held by the Financial Services Authority, originating from the supervision results of the Financial Services Authority or other sources.

Paragraph (6)
Clear enough.

Paragraph (7)
See the explanation of Article 11 paragraph (7).

Paragraph (8)
Clear enough.

Article 101
Clear enough.

Article 102

Paragraph (1)
The term "appointment and/or dismissal of Experts" includes the appointment and/or dismissal of Experts within the internal structure of the Company.
Example:
In the event that Insurance Company A appoints Expert XYZ at an Office Outside the Head Office (e.g., in Bandung) while simultaneously dismissing Expert FGH from the Office Outside the Head Office (in Bandung) and appointing Expert FGH at the Head Office, then Insurance Company A must report the appointment of Expert XYZ and Expert FGH, and report the dismissal of Expert FGH from the Office Outside the Head Office (in Bandung).

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Article 103
Clear enough.

Article 104
See the explanation of Article 15.

Article 105

Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
The term "permission to use the Company's name" refers to the permission to use the Company's name by offices managed by third parties, for example by Insurance Agency business entities.

Article 106

Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Letter a
Provisions regarding solvency levels refer to the Financial Services Authority Regulation regarding the financial health of Companies.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
See the explanation of Article 11 paragraph (7).

Paragraph (6)
Clear enough.

Article 107
Clear enough.

Article 108
Clear enough.

Article 109
Clear enough.

Article 110
The term "cooperated with other Parties" includes, among others, cooperation between the Company and business entities to provide space for the Company's Insurance Agents to help provide information services to the public, policyholders, participants, or insured parties.

Article 111

Paragraph (1)
Clear enough.

Paragraph (2)
The term "paying attention to the interests of policyholders, insured parties, or participants" refers to the settlement of rights and obligations in accordance with the contents of the insurance policy agreement.

Article 112
Clear enough.

Article 113
Clear enough.

Article 114
See the explanation of Article 15.

Article 115
Clear enough.

Article 116
Clear enough.

Article 117
See the explanation of Article 15.

Article 118

Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Letter a
See the explanation of Article 80 paragraph (1).

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Data of prospective Insurance Agents in this provision includes, among others, name, certification number, ID card, address, and the Insurance Company where the Insurance Agent works.

Paragraph (7)
In the event that the 10th day falls on a holiday, the deadline for the obligation to submit verification results falls on the next working day.

Paragraph (8)
Clear enough.

Paragraph (9)
Clear enough.

Paragraph (10)
Clear enough.

Paragraph (11)
Clear enough.

Article 119

Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Agency issues include, among others, disputes between the Insurance Company resulting from the use of Insurance Agents in the course of insurance product marketing activities.

Paragraph (5)
Clear enough.

Article 120

Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Clear enough.

Letter b
The term "committing disgraceful acts" includes, among others, the following actions:
a. churning, which is an action by the party marketing Insurance products that persuades and/or influences policyholders to change or replace existing Insurance policies with new Insurance policies at the same Insurance Company or Sharia Insurance Company, and/or buy new Insurance policies using funds from still-active insurance policies from the same Insurance Company or Sharia Insurance Company without prior explanation to the policyholder regarding the losses that may be suffered by the policyholder as a result of such change/replacement; b. pooling, which is an action to transfer the sale of Insurance products that has been carried out by an Insurance Agent, or a party marketing Insurance products, to another party; and
c. twisting, which is an action by the party marketing Insurance products that persuades and/or influences policyholders to change the specifications of existing Insurance policies or replace existing Insurance policies with new Insurance policies at other Insurance Companies or Sharia Insurance Companies, and/or buy new Insurance policies using funds from still-active insurance policies at another company within a period of 6 (six) months before or after the date the new Insurance policy at the other Insurance Company or Sharia Insurance Company is issued.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Article 121
Clear enough.

Article 122
Clear enough.

Article 123
See the explanation of Article 15.

Article 124

Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
The change of status of a closed Company to an open Company is carried out through an Initial Public Offering.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Certain conditions include, among others, for the rehabilitation of the Company. Capital additions in other forms, for example in the form of land and buildings.

Article 125

Paragraph (1)
The Company's obligation to adjust Paid-up Capital only applies in the event of an Acquisition, thus in the event of a change in ownership that does not result in an Acquisition, there is no need to adjust the Paid-up Capital provisions.

Paragraph (2)
Letter a
The term "change of ownership through Acquisition that is the result of inheritance" refers to the existence of new shareholders or the transfer of Control over the Company as a result of the transfer of inheritance rights from previous shareholders or controlling parties.

Letter b
Clear enough.

Letter c
The term "group restructuring" refers to the transfer of ownership of the Company or changes in relationships between entities within a group or common control, usually being strategic for the group. Example:
Insurance Company PT X is owned by PT ABC.
Based on the business strategy to be implemented by the shareholders of PT ABC, PT ABC will be directed as a parent company overseeing subsidiaries in fields other than financial services. Meanwhile, subsidiaries in the financial services field will be overseen by PT DEF, which is a sister company of PT ABC. Thus, a change in ownership of Insurance Company PT X occurs due to restructuring within the Company group.

Letter d
The term "change of ownership based on the assessment of the Financial Services Authority" includes, among others, in the context of Company rehabilitation.

Paragraph (3)
Clear enough.

Article 126
Clear enough.

Article 127
Clear enough.

Article 128
Clear enough.

Article 129
Clear enough.

Article 130
Clear enough.

Article 131
See the explanation of Article 15.

Article 132

Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
When there is a change in Company ownership, the process of changing the Company's name can be processed as long as the change in ownership has been approved by the Financial Services Authority.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Article 133

Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
The term "resilient conditions" refers to conditions regarding the date the start of the term of office of the Joint Business Directors.

Letter b
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Article 134
Clear enough.

Article 135
Clear enough.

Article 136
Clear enough.

Article 137
See the explanation of Article 15.

Article 138

Paragraph (1)
The term "cooperation" refers to synergy cooperation among Companies that are part of the same ownership, with PSPs in the form of Companies, or owned by the same PSP or controller, or that are part of the Holding Company (KUPA), for the purpose of efficiency and optimization of resources through support and providing added value in supporting the implementation of business activities, services, and operations of the parties involved in the cooperation.

Paragraph (2)
Clear enough.

Paragraph (3)
Letter a
Clear enough.

Letter b
Number 1
Clear enough.

Number 2
Clear enough.

Number 3
Clear enough.

Number 4
Based on this provision, cooperation using the Company's Actuaries for General Insurance Companies and Sharia General Insurance Companies is permitted.

Number 5
The committee referred to is a committee that must be formed by the Company along with the fulfillment of the number of committee members based on applicable legislation. In carrying out its functions, the committee referred to may use the Company's human resources as committee members in addition to the required members according to applicable legislation.

Number 6
Executive Officials include, among others, heads of work units or functions that must be formed by the Company and heads of divisions one level below the Board of Directors.

Paragraph (4)
Independent parties include, among others, independent parties in the audit committee and risk monitoring committee in accordance with applicable legislation regarding good corporate governance for insurance companies.

Paragraph (5)
The aforementioned cooperation does not eliminate the Company's responsibility for risks resulting from actions carried out by other Companies in implementing the aforementioned cooperation. Example:
In the event that a Sharia Insurance Company or Sharia Reinsurance Company cooperates with an Insurance Company or Reinsurance Company for the marketing of Sharia products, the Sharia Insurance Company or Sharia Reinsurance Company remains responsible, among others, for the fulfillment of Sharia Principles, the confidentiality of customer information of the Sharia Insurance Company or Sharia Reinsurance Company, and the potential for incorrect information provision as a result of the lack of Sharia knowledge of the marketing personnel of the Insurance Company or Reinsurance Company.

Article 139

Letter a
Clear enough.

Letter b
The term "operational risk" is the risk resulting from insufficient and/or non-functioning internal processes, human error, system failure, and/or the existence of external events that affect the Company's operations. The term "reputational risk" is the risk resulting from a decrease in the level of trust of stakeholders originating from negative perceptions of the Company based on the Financial Services Authority Regulation regarding the implementation of risk management for Companies.

Article 140

Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
The scope of the cooperation agreement includes, among others, the type of activities being cooperated on.

Letter b
Clear enough.

Letter c
Number 1
Knowledge transfer is carried out, among others, through training activities, workshops, focus group discussions, socialization, and seminars. Knowledge transfer is carried out by:
a) The Company to the Company's human resources so that the Company's human resources understand and can carry out the activities being cooperated on in accordance with the Principles; and/or b) The Company to the Company's human resources so that the Company's human resources understand and can one day carry out the activities being cooperated on independently.

Number 2
The term "confidentiality and security of the Company's information and policyholders/participants' information" refers to actions that provide protection, maintain the confidentiality and security of the Company's information and policyholders'/participants' information, and only use such information in accordance with the interests and purposes approved by the policyholders/participants of the Company, unless otherwise determined by applicable legislation. The obligation to maintain the confidentiality and security of policyholders'/participants' information includes, among others, in accordance with the Financial Services Authority Regulation regarding consumer protection in the financial services sector.

Number 3
Responsibility for losses includes, among others, responsibility for losses when there is a system failure, fraud, or external factors.

Number 4
The term "handling complaints from policyholders, insured parties, or participants of the Company" is in accordance with the Financial Services Authority Regulation regarding consumer complaint services in the financial services sector.

Paragraph (3)
Clear enough.

Article 141

Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Including the cooperation plan in the business plan is part of the plan for issuing products and/or implementing new activities.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
The term "day" refers to calendar days.

Article 142

Paragraph (1)
See the explanation of Article 141 paragraph (7).

Paragraph (2)
Additional scope of the cooperation agreement includes, among others, the charging of costs and/or the determination of remuneration, as well as the size and standards of activity implementation or Service Level Agreement (SLA). In the charging of costs and/or determination of remuneration, it is regulated, among others, regarding the party that must pay the costs arising from the cooperation, the amount of remuneration that the Company must pay to the Company, and the payment method. The size of activity implementation includes, among others, the size of the quantity, quality, and/or duration of work completion. Standards of activity implementation are procedures that must be met at least in the process of implementing the cooperated activities. Additional supporting documents include, among others, letters of approval or recommendations from other authorities in accordance with applicable legislation.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Article 143
Clear enough.

Article 144
Clear enough.

Article 145
Clear enough.

Article 146
Clear enough.

Article 147
See the explanation of Article 15.

Article 148
Clear enough.

Article 149
Clear enough.

Article 150
See the explanation of Article 15.

Article 151
Certain considerations related to the analysis and results of the Financial Services Authority's supervision for the protection of policyholders, insured parties, or participants while still paying attention to the principle of prudence.

Article 152
Clear enough.

Article 153
Clear enough.

Article 154

Paragraph (1)
The registered mark of the Association that has been owned by the Insurance Agent can be used to fulfill the registration obligation to the Financial Services Authority.

Paragraph (2)
Clear enough.

Article 155
Clear enough.

Article 156
Clear enough.

Article 157
Clear enough.

Article 158
Clear enough.

Article 159
Clear enough.

Article 160
Clear enough.

Article 161
Clear enough.

Article 162
Clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 63/OJK

APPENDIX

FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 23 OF 2023
CONCERNING
BUSINESS LICENSING AND INSTITUTIONAL REQUIREMENTS FOR INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES

I. LIST OF DOCUMENT REQUIREMENTS FOR BUSINESS LICENSE APPLICATIONS
FOR INSURANCE COMPANIES AND REINSURANCE COMPANIES

NO. DOCUMENT LIST DESCRIPTION

Copy of the deed of establishment of the legal entity
that has been approved by the competent authority, which must at least contain:
a. name and domicile; b. purpose and business activities;
c. Paid-up Capital;
d. ownership; and e. authority, responsibility, and term of office of Board of Directors members, and Board of Commissioners members; The authority and responsibility of Board of Directors members and Board of Commissioners members refer to the Financial Services Authority Regulation regarding good corporate governance for insurance companies.
Copy of the last deed of amendment of the articles of association (if any) accompanied by photocopies of proof of approval and/or proof of receipt of notification from the competent authority;
Organizational structure complete with job descriptions, authority, responsibility, and work procedures;
The organizational structure must clearly describe the separation of risk management functions, financial management functions, and service functions.
Copy of proof of paid-up capital settlement in the form of:
a. proof of cash deposit from shareholders; b. company bank statements since the date of capital deposit from shareholders until the date of business license application; and The source of funds used for capital deposits must explain the entire flow of funds starting from the source of the initial assets of the shareholders until the funds in question are recorded as capital deposits.

c. A copy of proof of placement of the Minimum Paid-up Capital in the form of time deposits and/or current accounts in the name of the relevant Company at one of the general banks or Sharia general banks in Indonesia, which is legalized or validated by the receiving bank and/or each issuing bank, which remains valid during the business license application process;

Initial Report of the Guarantee Fund along with proof of placement of the Guarantee Fund;
Ownership list, with the following provisions:
a. For Insurance Companies or Reinsurance Companies in the form of a limited liability company, the ownership list document consists of:
1) Shareholders along with details of each share ownership up to the last shareholder and/or beneficial owner; and
2) A list of other companies owned by the shareholders or the entire business group structure related to the Insurance Company and Reinsurance Company;
b. For Insurance Companies or Reinsurance Companies in the form of a cooperative legal entity, the ownership list document consists of a member list along with the amount of basic savings and mandatory savings;
In the case of prospective Principal Shareholders (PSP), documents in accordance with Financial Services Authority regulations regarding the suitability and competence assessment for prospective Principal Parties of the Company;
Data of shareholders or members other than PSP:
a. Individuals, accompanied by:
1) A copy of identification in the form of an identity card (KTP) or a valid passport;
2) A copy of the Taxpayer Identification Number (NPWP);
3) A copy of the tax return (SPT) for the last 2 (two) years and other documents showing financial capability and funding sources for individual prospective shareholders;
4) A curriculum vitae with the latest 4 x 6 cm color passport photo; and
5) A stamped declaration letter from the concerned party stating:
a) The capital deposit does not come from loans; b) The capital deposit does not come from money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes; c) Does not have non-performing loans and/or financing; d) Is not included as a Party prohibited from becoming a shareholder or a Party that manages, oversees, and/or has significant influence on financial service institutions; e) Has never been sentenced for committing criminal acts in the field of financial service business and/or the economy based on a court decision that has had permanent legal force in the last 5 (five) years; f) Has never been sentenced for committing criminal acts based on a court decision that has had permanent legal force in the last 5 (five) years; g) Has never been declared bankrupt or guilty causing a company to be declared bankrupt based on a court decision that has had permanent legal force in the last 5 (five) years; and h) Has never been a PSP, Board of Directors member, Board of Commissioners member, Controller, or Sharia Supervisory Board (DPS) member at a financial service company whose business license was revoked due to violations in the last 5 (five) years; b. Legal entities, accompanied by:
1) A copy of the establishment deed of the legal entity, including the articles of association and any amendments (if any), accompanied by photocopies of proof of approval, consent, and/or letter of receipt of notification from the competent authority;
2) Financial reports audited by a public accountant, accompanied by non-consolidated financial reports and the latest monthly financial report before capital deposit, which have been signed by the directors of the shareholder;
3) A copy of the Taxpayer Identification Number (NPWP) of the legal entity;
4) Data of directors or equivalents of the shareholder in the form of a legal entity, including:
a) A copy of identification in the form of an identity card (KTP) or a valid passport; b) A copy of the Taxpayer Identification Number (NPWP); c) A curriculum vitae with the latest 4 x 6 cm color passport photo; and d) A stamped declaration letter from the directors or equivalents of the shareholder in the form of a legal entity stating that:
1. The source of funds for capital participation does not come from money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes;
2. The source of funds for capital participation does not come from loans;
3. The shareholder does not have non-performing loans and/or financing;
4. The shareholder is not included as a Party prohibited from becoming a shareholder or a Party that manages, oversees, and/or has significant influence on financial service institutions;
5. The shareholder has never been sentenced for committing criminal acts in the field of financial service business and/or the economy based on a court decision that has had permanent legal force in the last 5 (five) years;
6. The shareholder has never been declared bankrupt or declared guilty causing a company to be declared bankrupt based on a court decision that has had permanent legal force in the last 5 (five) years; and
7. The shareholder has never been a PSP at a financial service company whose business license was revoked due to violations in the last 5 (five) years; and
5) Rating results from an internationally recognized rating agency, for shareholders in the form of foreign legal entities;
c. Central government, accompanied by a copy of government regulations regarding state capital participation for the establishment of Insurance Companies or Reinsurance Companies; and
d. Regional government, accompanied by a copy of regional regulations regarding regional capital participation for the establishment of Insurance Companies or Reinsurance Companies;
A copy of the tax return (SPT) for the last 2 (two) years before the capital participation is made and other documents showing financial capability and funding sources, for individual prospective shareholders;
List of Controllers along with information regarding the form of control;
Proof of employing Expert Personnel;
Business plan for the first 3 (three) years which at least contains:
a. Vision, mission, and business strategy of the Insurance Company and Reinsurance Company; b. Management policies and plans, including:
1) Business activity plans;
2) Plans for development or expansion of business activities;
3) Investment plans;
4) Capital plans;
5) Financing plans;
6) Plans for development and/or changes in office networks or distribution channels;
7) Plans for organizational development, human resources, and/or information technology; and
8) Activity plans to increase financial literacy and inclusion;
c. Financial report projections along with the assumptions used; and
d. Projections of ratios and certain items; and e. Other information; The business plan format refers to the business plan format as regulated in regulations regarding periodic reports established by the Financial Services Authority.
A copy of the risk management guidelines of the Insurance Company or Reinsurance Company;
Specifications of insurance products to be marketed, accompanied by projections of premium income and expenses related to the marketing of new insurance products for a period of 3 (three) years and sample policies to be used for the Insurance Company;
Copies of agreements with other parties (if any) and policies for the transfer of some functions in the conduct of business;
Administration systems and data management infrastructure supporting the preparation and submission of reports to the Financial Services Authority;
Confirmation from the supervisory authority in the country of origin of the Foreign Party, in the event of participation from a Foreign Legal Entity that has a supervisory authority in its country of origin;
Proof of payment of licensing fees for the issuance of business licenses;
Supporting documents stating that the Company has human resources with competence in risk management; and
Other documents to support healthy business growth, including:
a. Copies of the initial/closing financial position reports of the Insurance Company or Reinsurance Company; b. Proof of operational readiness;
c. Proof of employing Company Actuaries and internal auditors;
d. Copies of guidelines for the implementation of anti-money laundering and terrorism financing prevention programs; e. Copies of good corporate governance guidelines for Insurance Companies and Reinsurance Companies; f. Investment governance guidelines; g. Copies of cooperation agreements between shareholders in the form of foreign legal entities and Indonesian shareholders, for Insurance Companies or Reinsurance Companies that include participation from Foreign Legal Entities, which are made in Indonesian language and at least contain:
1) Capital composition and details of authority, which at least contain provisions regarding voting rights, profit and loss distribution, and the appointment of Board of Directors members and Board of Commissioners members of the Insurance Company or Reinsurance Company; and
2) Obligations of shareholders in the form of Foreign Legal Entities to formulate and implement education and training programs according to their fields of expertise;
h. Automatic reinsurance support plans, for Insurance Companies; and
i. Retrocession support plans, for Reinsurance Companies.

The meaning of proof of operational readiness includes among others:
1. List of fixed assets and inventories (if any);
2. Data regarding office addresses supported by letters of confirmation from relevant parties which at least state the name of the Company;
3. Photos of the building exterior and interior photos; and
4. Room layout (lay-out).

II. LIST OF DOCUMENT REQUIREMENTS FOR APPLICATION FOR BUSINESS LICENSE FOR THE ESTABLISHMENT OF NEW SHARIA INSURANCE COMPANIES AND SHARIA REINSURANCE COMPANIES

NO. DOCUMENT LIST DESCRIPTION

A copy of the establishment deed of the legal entity that has been approved by the competent authority, which at least must contain:
a. Name and domicile; b. Purpose and objectives as well as business activities;
c. Paid-up capital;
d. Ownership; and e. Authority, responsibilities, and term of office of Board of Directors members, Board of Commissioners members, and Sharia Supervisory Board (DPS) members; The authority and responsibilities of Board of Directors members and Board of Commissioners members refer to Financial Services Authority Regulations regarding good corporate governance for insurance companies.
A copy of the last amendment to the articles of association (if any) accompanied by copies of proof of approval and/or proof of letter of receipt of notification from the competent authority;
Organizational structure accompanied by descriptions of duties, authority, responsibilities, and work procedures;
The organizational structure clearly describes the separation of risk management functions, financial management functions, and service functions.
Copies of proof of paid-up capital settlement in the form of:
a. Cash deposit receipts from shareholders; b. Company bank statements from the date of capital deposit from shareholders until the date of business license application; and
c. Copies of proof of placement of Minimum Paid-up Capital in the form of time deposits and/or current accounts in the name of the relevant Company at one of the general banks or Sharia general banks in Indonesia, which is legalized by the receiving bank, which remains valid during the business license application process;
The source of funds used for capital deposits explaining the entire flow of funds from the source of initial assets of shareholders until the funds are recorded as capital deposits.
Initial Report of the Guarantee Fund along with proof of placement of the Guarantee Fund;
Ownership list, with the following provisions:
a. For Sharia Insurance Companies or Sharia Reinsurance Companies in the form of a limited liability company, the ownership list document consists of:
1) Shareholders along with details of each share ownership up to the last shareholder and/or beneficial owner; and
2) A list of other companies owned by the shareholders or the entire business group structure related to the Sharia Insurance Company and Sharia Reinsurance Company; and
b. For Sharia Insurance Companies or Sharia Reinsurance Companies in the form of a cooperative legal entity, the ownership list document consists of a member list along with the amount of basic savings and mandatory savings;
In the case of prospective Principal Shareholders (PSP), documents in accordance with Financial Services Authority regulations regarding the suitability and competence assessment for prospective Principal Parties of the Company;
Data of shareholders or members other than PSP:
a. Individuals, accompanied by:
1) A copy of identification in the form of an identity card (KTP) or a valid passport;
2) A copy of the Taxpayer Identification Number (NPWP);
3) A copy of the tax return (SPT) for the last 2 (two) years and other documents showing financial capability and funding sources for individual prospective shareholders;
4) A curriculum vitae with the latest 4 x 6 cm color passport photo; and
5) A stamped declaration letter from the concerned party stating:
a) The capital deposit does not come from loans; b) The capital deposit does not come from money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes; c) Does not have non-performing loans and/or financing; d) Is not included as a Party prohibited from becoming a shareholder or a Party that manages, oversees, and/or has significant influence on financial service institutions; e) Has never been sentenced for committing criminal acts in the field of financial service business and/or the economy based on a court decision that has had permanent legal force in the last 5 (five) years; f) Has never been sentenced for committing criminal acts based on a court decision that has had permanent legal force in the last 5 (five) years; g) Has never been declared bankrupt or guilty causing a company to be declared bankrupt based on a court decision that has had permanent legal force in the last 5 (five) years; and h) Has never been a PSP, Board of Directors member, Board of Commissioners member, Controller, or Sharia Supervisory Board (DPS) member at a financial service company whose business license was revoked due to violations in the last 5 (five) years; b. Legal entities, accompanied by:
1) A copy of the establishment deed of the legal entity, including the articles of association and any amendments (if any), accompanied by copies of proof of approval, consent, and/or letter of receipt of notification from the competent authority;
2) Financial reports audited by a public accountant, accompanied by non-consolidated financial reports and the latest monthly financial report before capital deposit, which have been signed by the directors of the shareholder;
3) A copy of the Taxpayer Identification Number (NPWP) of the legal entity;
4) Data of directors or equivalents of the shareholder in the form of a legal entity, including:
a) A copy of identification in the form of an identity card (KTP) or a valid passport; b) A copy of the Taxpayer Identification Number (NPWP); c) A curriculum vitae with the latest 4 x 6 cm color passport photo; and d) A stamped declaration letter from the directors or equivalents of the shareholder in the form of a legal entity stating that:
1. The source of funds for capital participation does not come from money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes;
2. The source of funds for capital participation does not come from loans;
3. The shareholder does not have non-performing loans and/or financing;
4. The shareholder is not included as a Party prohibited from becoming a shareholder or a Party that manages, oversees, and/or has significant influence on financial service institutions;
5. The shareholder has never been sentenced for committing criminal acts in the field of financial service business and/or the economy based on a court decision that has had permanent legal force in the last 5 (five) years;
6. The shareholder has never been declared bankrupt or declared guilty causing a company to be declared bankrupt based on a court decision that has had permanent legal force in the last 5 (five) years; and
7. The shareholder has never been a PSP at a financial service company whose business license was revoked due to violations in the last 5 (five) years; and
5) Rating results from an internationally recognized rating agency, for shareholders in the form of foreign legal entities;
c. Central government, accompanied by a photocopy of government regulations regarding state capital participation for the establishment of Insurance Companies or Reinsurance Companies; and
d. Regional government, accompanied by a photocopy of regional regulations regarding regional capital participation for the establishment of Insurance Companies or Reinsurance Companies;
A copy of the tax return (SPT) for the last 2 (two) years before the capital participation is made and other documents showing financial capability and funding sources, for individual prospective shareholders;
List of Controllers along with information regarding the form of control;
Proof of employing Expert Personnel;
Business plan for the first 3 (three) years which at least contains:
a. Vision, mission, and business strategy of the Sharia Insurance Company and Sharia Reinsurance Company; b. Management policies and plans, including:
1) Business activity plans;
2) Plans for development or expansion of business activities;
3) Investment plans;
4) Capital plans;
5) Financing plans;
6) Plans for development and/or changes in office networks or distribution channels;
7) Plans for organizational development, human resources, and/or information technology; and
8) Activity plans to increase financial literacy and inclusion;
c. Financial report projections along with the assumptions used;
d. Projections of ratios and certain items; and e. Other information;
A copy of the risk management guidelines of the Sharia Insurance Company or Sharia Reinsurance Company;
Specifications of Sharia insurance products to be marketed, accompanied by projections of premium income and expenses related to the marketing of new Sharia insurance products for a period of 3 (three) years and sample policies to be used for the Sharia Insurance Company;
Copies of agreements with other parties (if any) and policies for the transfer of some functions in the conduct of business;
Administration systems and data management infrastructure supporting the preparation and submission of reports to the Financial Services Authority;
Confirmation from the supervisory authority in the country of origin of the Foreign Party, in the event of participation from a Foreign Legal Entity that has a supervisory authority in its country of origin;
Proof of payment of licensing fees for the issuance of business licenses;
Supporting documents stating that the Company has human resources with competence in risk management; and
Other documents to support healthy business growth, including:
a. Copies of the initial/closing financial position reports of the Sharia Insurance Company or Sharia Reinsurance Company; b. Proof of operational readiness;
c. Proof of employing Company Actuaries and internal auditors;
d. Copies of guidelines for the implementation of anti-money laundering and terrorism financing prevention programs; e. Copies of good corporate governance guidelines for Sharia Insurance Companies and Sharia Reinsurance Companies; f. Investment governance guidelines; g. Copies of cooperation agreements between shareholders in the form of foreign legal entities and Indonesian shareholders, for Sharia Insurance Companies or Sharia Reinsurance Companies that include participation from Foreign Legal Entities, which are made in Indonesian language and at least contain:
1) Capital composition and details of authority, which at least contain provisions regarding voting rights, profit and loss distribution, and the appointment of Board of Directors members and Board of Commissioners members of the Sharia Insurance Company or Sharia Reinsurance Company; and
2) Obligations of shareholders in the form of Foreign Legal Entities to formulate and implement education and training programs according to their fields of expertise;
h. Automatic reinsurance support plans, for Sharia Insurance Companies; and
i. Retrocession support plans, for Sharia Reinsurance Companies;

The meaning of proof of operational readiness includes among others:
1. List of fixed assets and inventories (if any);
2. Data regarding office addresses supported by letters of confirmation from relevant parties which at least state the name of the Sharia Insurance Company or Sharia Reinsurance Company;
3. Photos of the building exterior and interior photos; and
4. Room layout (lay-out).
A copy of the minutes of the General Meeting of Shareholders (RUPS) regarding the appointment of DPS members, accompanied by a letter of receipt of notification from the competent authority;
Proof of approval from the National Sharia Board regarding the appointment of DPS members;
A copy of guidelines for financial management implementation in accordance with Sharia Principles, which at least regulate investment placement including limits, types, and amounts;
A copy of guidelines for the conduct of Insurance Business in accordance with Sharia Principles, which at least regulate risk distribution;
Supporting evidence that the employed Expert Personnel have expertise in the field of Sharia Insurance and/or Sharia economics; and
Proof of DPS approval regarding the compliance with Sharia principles of the Sharia Insurance products to be marketed, which at least includes:
a. Marketing methods; b. Automatic reinsurance support plans for Sharia Insurance Companies and retrocession support plans for Sharia Reinsurance Companies; and
c. Sample policies, insurance application forms (SPPA), and brochures.

III. LIST OF DOCUMENT REQUIREMENTS FOR BUSINESS LICENSE APPLICATIONS
CONVERSION FROM INSURANCE COMPANIES AND REINSURANCE COMPANIES TO SHARIA INSURANCE COMPANIES AND SHARIA REINSURANCE COMPANIES

NO. DOCUMENT LIST DESCRIPTION

Organizational structure accompanied by descriptions of duties, authorities, responsibilities, and work procedures;
The organizational structure must clearly depict the separation of risk management functions, financial management functions, and service functions.
Initial report on the Guarantee Fund along with proof of the placement of the Guarantee Fund;
Ownership list, with the following provisions:
a. For Insurance Companies or Reinsurance Companies in the form of limited liability companies, the ownership list document consists of:

Shareholders along with details of each share ownership down to the ultimate shareholder and/or beneficial owner; and
A list of other companies owned by shareholders or the entire business group structure related to the Insurance Company and Reinsurance Company;
b. For Insurance Companies or Reinsurance Companies in the form of cooperative legal entities, the ownership list document consists of a list of members along with the amount of basic savings and mandatory savings;

Data on shareholders or members other than PSP (Principal Shareholders):
a. Individuals, accompanied by:

Copy of identification in the form of an ID card (KTP) or valid passport;
Copy of the Taxpayer Identification Number (NPWP);
Copy of tax notification forms (SPT) for the last 2 (two) years and other documents showing the financial capacity and source of funds of the individual prospective shareholder;
Curriculum vitae accompanied by the latest 4 x 6 cm color passport photo; and
This requirement is only applied if there is a change in ownership caused by the addition of new shareholders.
A stamped declaration letter from the concerned party stating:
a) Capital deposits do not originate from loans; b) Capital deposits do not originate from money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and financial crimes; c) Do not have non-performing loans and/or financing; d) Are not included as Parties prohibited from becoming shareholders or Parties managing, supervising, and/or having significant influence on financial service institutions; e) Have never been sentenced for committing criminal offenses in the field of financial service business and/or the economy based on a court decision that has had permanent legal force within the last 5 (five) years; f) Have never been sentenced for committing criminal offenses based on a court decision that has had permanent legal force within the last 5 (five) years; g) Have never been declared bankrupt or guilty causing a company to be declared bankrupt based on a court decision that has had permanent legal force within the last 5 (five) years; and h) Have never been a PSP, Board of Directors member, Board of Commissioners member, Controller, or DPS member in a financial service company whose business license was revoked due to violations in the last 5 (five) years; b. Legal entities, accompanied by:
Copy of the deed of establishment of the legal entity, including the articles of association along with any amendments, accompanied by copies of proof of approval, consent, and/or notification receipt letters from the competent authority;
Financial reports audited by a public accountant, accompanied by non-consolidated financial reports and the latest month's financial report before capital deposit, which have been signed by the directors of the shareholder;
Copy of the Taxpayer Identification Number (NPWP) of the legal entity;
Data on directors or equivalents of shareholders in the form of legal entities, including:
a) Copy of identification in the form of an ID card (KTP) or valid passport; b) Copy of the Taxpayer Identification Number (NPWP); c) Curriculum vitae accompanied by the latest 4 x 6 cm color passport photo; d) A stamped declaration letter from the directors or equivalents of shareholders in the form of legal entities stating that:

The source of funds for capital participation does not originate from money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes;
The source of funds for capital participation does not originate from loans;
Shareholders do not have non-performing loans and/or financing;
Shareholders are not included as parties prohibited from becoming shareholders or parties managing, supervising, and/or having significant influence on financial service institutions;
Shareholders have never been sentenced for committing criminal offenses in the field of financial service business and/or the economy based on a court decision that has had permanent legal force within the last 5 (five) years;
Shareholders have never been declared bankrupt or declared guilty causing a company to be declared bankrupt based on a court decision that has had permanent legal force within the last 5 (five) years; and
Shareholders have never been a PSP in a financial service company whose business license was revoked due to violations in the last 5 (five) years; and

Rating results from internationally recognized rating agencies, for shareholders in the form of foreign legal entities;
c. Central government, accompanied by a photocopy of the government copy regarding state capital participation for the establishment of Insurance Companies or Reinsurance Companies; and
d. Local government, accompanied by a copy of the regional regulation regarding regional capital participation for the establishment of Insurance Companies or Reinsurance Companies;

List of Controllers along with information regarding the form of control;
This requirement is only applied if there is a change in control.
Proof of employing Expert Personnel;
Business plan for the first 3 (three) years at least containing:
a. Vision, mission, and business strategy of the Insurance Company and Reinsurance Company; b. Policies and management plans, including:

Business activity plans;
Plans for development or expansion of business activities;
Investment plans;
Capital plans;
Financing plans;
Plans for development and/or changes in office networks or distribution channels;
Plans for organizational, human resource, and/or information technology development; and
Plans for activities to improve financial literacy and inclusion;
c. Financial statement projections along with the assumptions used;
d. Projections of ratios and specific items; and e. Other information;

Copy of the Sharia Insurance Company or Sharia Reinsurance Company's risk management guidelines;
Copy of agreements with other parties (if any) and policies on the transfer of some functions in the conduct of business;
Administration system and data management infrastructure supporting the preparation and submission of reports to the Financial Services Authority (OJK);
Confirmation from the supervisory authority in the home country of the foreign party, in the event of participation from a Foreign Legal Entity that has a supervisory authority in its home country;
This requirement is only applied if there is a change in ownership involving shareholders in the form of foreign legal entities.
Supporting documents stating that the Company has human resources with competence in risk management;
Other documents to support healthy business growth, including:
a. Copy of the initial/closing financial position report of the Sharia Insurance Company or Sharia Reinsurance Company that has presented assets and liabilities related to policyholder rights or participants separately from other assets and liabilities of the Company; b. Proof of operational readiness;
c. Proof of employing Company Actuaries and internal auditors;
d. Copy of guidelines for the implementation of anti-money laundering and counter-terrorism financing programs; *The meaning of proof of operational readiness includes among others:
List of fixed assets and inventory (if any);
Data regarding office addresses supported by letters of confirmation from relevant parties stating at least the name of the Company;
Photos of the building exterior and interior; and
Room layout (lay-out).*
e. Copy of good corporate governance guidelines for Insurance and Reinsurance Companies; f. Investment governance guidelines; g. Copy of cooperation agreements between shareholders in the form of foreign legal entities and Indonesian shareholders, for Insurance or Reinsurance Companies that include participation from Foreign Legal Entities, made in Indonesian language and at least containing:

Capital composition and details of authorities, at least containing provisions regarding voting rights, profit and loss distribution, and appointment of Directors and Board of Commissioners members of the Insurance or Reinsurance Company; and
Obligations of shareholders in the form of Foreign Legal Entities to prepare and implement education and training programs according to their field of expertise;
h. Automatic reinsurance support plan, for Sharia Insurance Companies; and
i. Retrocession support plan, for Sharia Reinsurance Companies;

Business license as an Insurance Company or Reinsurance Company;
Copy of the deed of amendment of articles of association containing:
a. One of the purposes and objectives of the Company is to conduct business activities based on Sharia Principles; and b. Authorities and responsibilities of the DPS (Sharia Supervisory Board), accompanied by proof of approval, proof of consent, and/or proof of notification receipt letters from the competent authority;
Copy of the RUPS (General Meeting of Shareholders) minutes approving the conversion;
Copy of the RUPS minutes regarding the appointment of DPS members;
Proof of approval from the National Sharia Council regarding the appointment of DPS members;
Copy of guidelines for financial management implementation in accordance with Sharia Principles at least regulating investment placement including limits, types, and amounts;
Copy of guidelines for conducting Insurance Business in accordance with Sharia Principles at least regulating risk distribution;
Supporting documents that the employed Expert Personnel have expertise in Sharia Insurance and/or Sharia economics;
Proof of DPS approval regarding the conformity of Sharia principles for insurance products to be marketed at least including:
a. Marketing methods; b. Automatic reinsurance support plans for Sharia Insurance Companies and retrocession support plans for Sharia Reinsurance Companies; and
c. Examples of policies, insurance closure request letters (SPPA), and brochures; and
Plan for settling the rights of policyholders or insured parties who are unwilling to become policyholders or participants of the Sharia Insurance Company or Sharia Reinsurance Company resulting from conversion and adjustment of investment portfolios that are not yet in accordance with Sharia principles, accompanied by implementation time targets.

IV. LIST OF DOCUMENT REQUIREMENTS FOR APPLICATIONS FOR APPROVAL OF MERGER OR ABSORPTION

NO. DOCUMENT LIST DESCRIPTION

Work plan for the implementation of Merger or Absorption, at least containing:

Implementation steps;
Timeframe for the implementation of Merger and Absorption;
Plans for notification to policyholders, insured parties, or participants, and other stakeholders;
Methods for settling the rights of shareholders who do not agree to the takeover of the Company; and
Methods for settling the status of employees from the Company to be taken over;

Draft deed of RUPS minutes approving the Merger or Absorption;
Draft deed of Merger or Absorption;
List of shareholders accompanied by:

Details of each share ownership down to the ultimate shareholder and/or beneficial owner; and
A list of other companies owned by shareholders of the Company resulting from the Merger or Absorption;

The latest audited financial reports from the Company conducting the Merger or Absorption;
Proforma financial data resulting from the Merger or Absorption examined by a public accountant;
Proforma financial data of the Company refers to the balance sheet, income statement and other comprehensive income, statement of changes in equity, minimum capital report based on risk, and financial ratios of the Company.
Business plan for the first 3 (three) years of the Company resulting from the Merger or Absorption; and
Organizational structure of the Company resulting from the Merger or Absorption.
The organizational structure must clearly depict the separation of risk management functions, financial management functions, and service functions.

V. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING THE IMPLEMENTATION OF RUPS APPROVING MERGER

NO. DOCUMENT LIST DESCRIPTION

Copy of the deed of RUPS minutes approving the Merger;
Copy of the Deed of Merger;
Document stating that the Company merging does not have tax debts from the competent authority;
List of office networks in the Company receiving the Merger;
List of insurance products to be marketed by the Company receiving the Merger; and
List of Expert Personnel and foreign workers to be employed by the Company receiving the Merger.

VI. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING THE IMPLEMENTATION OF RUPS APPROVING ABSORPTION

NO. DOCUMENT LIST DESCRIPTION

Copy of the deed of RUPS minutes approving the Absorption;
Copy of the Deed of Absorption;
Copy of the deed of establishment of the Company resulting from the Absorption;
Document stating that the Company does not have tax debts from the competent authority;
List of office networks in the Company resulting from the Absorption;
List of insurance products to be marketed by the Company resulting from the Absorption; and
List of Expert Personnel and foreign workers to be employed by the Company resulting from the Absorption.

VII. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING CHANGES IN LEADERSHIP OF THE SHARIA UNIT

NO. DOCUMENT LIST DESCRIPTION

Copy of identification in the form of an ID card (KTP) or valid passport;
Curriculum vitae accompanied by the latest 4 x 6 cm color passport photo;
Proof of appointment as the leader of the Sharia Unit; and
Declaration letter stating:
a) Do not have non-performing loans and/or financing; b) Do not hold dual positions in other functions within the same company; and c) Proof of expertise, training, and/or experience in the field of Sharia finance.

VIII. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING PLANS TO EMPLOY FOREIGN WORKERS

NO. DOCUMENT LIST DESCRIPTION

Curriculum vitae of the employed foreign workers, accompanied by copies of valid identification (Passport);
Curriculum vitae of accompanying Indonesian workers accompanied by copies of valid identification (KTP);
Copy of documents reflecting the field of expertise of foreign workers;
Explanation from the Board of Directors regarding why the position cannot yet be filled by Indonesian workers;
Annual education and training program plan during the employment of the aforementioned foreign workers;
Plan for placement and fields of responsibility for foreign workers;
Organizational structure of the Company showing the placement of foreign workers; and
Statement that foreign workers have met the provisions of legislation in the field of manpower.

IX. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING THE APPOINTMENT OF FOREIGN WORKERS

NO. DOCUMENT LIST DESCRIPTION

Copy of proof of appointment and/or dismissal of foreign workers;
Copy of residence permit letter;
Copy of letter of permission to use foreign workers; and
Copy of Taxpayer Identification Number (NPWP).

X. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING THE APPOINTMENT OF EXPERT PERSONNEL, COMPANY ACTUARIES, AND INTERNAL AUDITORS

NO. DOCUMENT LIST DESCRIPTION

Copy of expertise certificates from the Professional Certification Body, for Expert Personnel and/or Company Actuaries;
Copy of identification in the form of an ID card (KTP) or valid passport;
Curriculum vitae accompanied by the latest 4 x 6 cm color passport photo;
Copy of letter of confirmation from the relevant professional association that no sanctions are being imposed;
In the event that the reporting of the appointment of the Company's internal auditor is not an accounting profession, the document requirements in this letter do not need to be attached.
Copy of proof of appointment of Expert Personnel, Company Actuaries, and/or internal auditors.

XI. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING THE OPENING OF OFFICES OUTSIDE THE HEAD OFFICE THAT HAVE THE AUTHORITY TO MAKE DECISIONS REGARDING THE ACCEPTANCE OR REJECTION OF UNDERWRITING AND/OR CLAIMS

NO. DOCUMENT LIST DESCRIPTION

Name of the office and office function;
Office address supported by a letter of confirmation from relevant parties stating at least the name of the Company;
Name of the office leader accompanied by a curriculum vitae;
Duties and authorities of the office leader;
Name and decision letter of Expert Personnel placed in offices outside the head office and registered with the Financial Services Authority;
Fulfillment of the Company's solvency requirements for the last 4 (four) quarters;
Risk assessment results with composite rating 1 or composite rating 2;
Status of administrative sanctions imposed by the Financial Services Authority; and
Latest business plan reported by the Company to the Financial Services Authority containing plans for opening offices outside the head office.

XII. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING THE CLOSING OF OFFICES OUTSIDE THE HEAD OFFICE THAT HAVE THE AUTHORITY TO MAKE DECISIONS REGARDING THE ACCEPTANCE OR REJECTION OF UNDERWRITING AND/OR CLAIMS

NO. DOCUMENT LIST DESCRIPTION

Proof of notification of the plan to close offices outside the head office; and
Proof of transfer of services from offices outside the head office that are closed to the head office or the nearest office outside the head office.

XIII. LIST OF DOCUMENT REQUIREMENTS FOR APPLICATIONS FOR APPROVAL OF ASSOCIATIONS

NO. DOCUMENT LIST DESCRIPTION

Copy of articles of association or house rules; and
Management structure.

XIV. LIST OF DOCUMENT REQUIREMENTS FOR APPLICATIONS FOR REGISTRATION OF INSURANCE AGENTS

NO. DOCUMENT LIST DESCRIPTION

Curriculum vitae;
Copy of valid agency certificates;
Copy of cooperation agreements for agency with Insurance Companies or Sharia Insurance Companies;
Copy of identification in the form of an ID card (KTP) that is still valid;
Copy of Taxpayer Identification Number (NPWP); and
Stamped declaration letter stating:
a. Not currently under sanctions or declared to have violated the code of ethics; b. Have never been sentenced for committing criminal offenses in the field of financial service business and/or the economy based on a court decision that has had permanent legal force within the last 5 (five) years; and
c. Not currently cooperating with other insurance companies and/or Sharia insurance companies with the same business management principles.

XV. LIST OF DOCUMENT REQUIREMENTS FOR APPLICATIONS FOR APPROVAL OF OWNERSHIP CHANGES

NO. DOCUMENT LIST DESCRIPTION

List of shareholders along with details of each share ownership down to the ultimate shareholder and/or beneficial owner and a list of other companies owned by shareholders;
Data on prospective shareholders in the event that ownership changes result in new shareholders, namely:
a. Individuals, accompanied by:

Copy of identification in the form of an ID card (KTP) or valid passport;
Copy of Taxpayer Identification Number (NPWP);
Copy of tax notification forms (SPT) for the last 2 (two) years and other documents showing the financial capacity and source of funds of the individual prospective shareholder;
Curriculum vitae accompanied by the latest 4 x 6 cm color passport photo; and
A stamped declaration letter from the concerned party stating:
a) Capital deposits do not originate from loans; b) Capital deposits do not originate from money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and financial crimes; c) Do not have non-performing loans and/or financing; d) Are not included as parties prohibited from becoming shareholders or parties managing, supervising, and/or having significant influence on financial service institutions; e) Have never been sentenced for committing criminal offenses in the field of financial service business and/or the economy based on a court decision that has had permanent legal force within the last 5 (five) years; f) Have never been sentenced for committing criminal offenses based on a court decision that has had permanent legal force within the last 5 (five) years; g) Have never been declared bankrupt or guilty causing a company to be declared bankrupt based on a court decision that has had permanent legal force within the last 5 (five) years; and h) Have never been a PSP, Board of Directors member, Board of Commissioners member, Controller, or DPS member in a financial service company whose business license was revoked due to violations in the last 5 (five) years; b. Legal entities, accompanied by:
Copy of the deed of establishment of the legal entity, including the articles of association along with any amendments, accompanied by copies of proof of approval, consent, and/or notification receipt letters from the competent authority;
Financial reports audited by a public accountant, accompanied by non-consolidated financial reports and the latest month's financial report before capital deposit, which have been signed by the directors of the shareholder;
Copy of the Taxpayer Identification Number (NPWP) of the legal entity;
Data on directors or equivalents of shareholders in the form of legal entities, including:
a) Copy of identification in the form of an ID card (KTP) or valid passport; b) Copy of Taxpayer Identification Number (NPWP); c) Curriculum vitae accompanied by the latest 4 x 6 cm color passport photo; d) A stamped declaration letter from the directors or equivalents of shareholders in the form of legal entities stating that:

The source of funds for capital participation does not originate from money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes;
The source of funds for capital participation does not originate from loans;
Shareholders do not have non-performing loans and/or financing;
Shareholders are not included as parties prohibited from becoming shareholders or parties managing, supervising, and/or having significant influence on financial service institutions;
Shareholders have never been sentenced for committing criminal offenses in the field of financial service business and/or the economy based on a court decision that has had permanent legal force within the last 5 (five) years;
Shareholders have never been declared bankrupt or declared guilty causing a company to be declared bankrupt based on a court decision that has had permanent legal force within the last 5 (five) years; and
Shareholders have never been a PSP in a financial service company whose business license was revoked due to violations in the last 5 (five) years; and

committing violations within the last 5 (five) years;
5) Rating results from internationally
recognized rating agencies, for shareholders that are foreign legal entities;
c. Central Government, accompanied by
a photocopy of the government copy regarding the state capital participation for the establishment of an insurance company or reinsurance company; and d. Regional Government, accompanied by a photocopy of the regional copy regarding regional capital participation for the establishment of an insurance company or reinsurance company;
3. Copy of the financial report of the existing
shareholder in the event of a change in ownership, which has been audited by a public accountant and accompanied by non-consolidated financial reports and the latest monthly financial report before capital deposit, which has been signed by the directors of the shareholder;
4. Draft minutes of the General Meeting of
Shareholders (RUPS) that approve the change in ownership in the event that a change in ownership requires RUPS approval;
5. Draft share purchase deed, in the event
there is a share sale between the shareholders or new prospective shareholders; The draft share purchase deed mentioned must include information on the acquisition price of the shares.
6. Draft deed of transfer of rights over
shares, in the event there is a transfer of rights over shares other than due to sale;
7. Copy of the tax notification letter (SPT) for the
last 2 (two) years before the capital participation is carried out and other documents that demonstrate the financial capacity and source of funds of individual existing shareholders in the event of a change in ownership;
8. Copy of the Company's financial report
that has been audited by a public accountant before the addition of Paid-up Capital, in the event that the change in ownership is caused by the addition of Paid-up Capital and will be carried out in the form of:

cash deposit;
conversion/transfer of retained earnings;
conversion/transfer of loans;
and/or
bonus shares;
Copy of the Company's bank statement
showing the receipt of loans, in the event that the change in ownership is carried out in the form of conversion/transfer of loans;
Proof of fund placement in an escrow
account and/or time deposits, in the event that the change in ownership is carried out through cash deposits; Shareholder funds used for the change in ownership that describe the entire flow of funds from the initial asset source of the shareholder to the funds in question recorded as capital deposits.
Copy of the cooperation agreement between
shareholders that are foreign legal entities and Indonesian shareholders for the request for approval of a change in ownership that involves new shareholders that are Foreign Legal Entities, which is made in Indonesian language and contains at least:
a. capital composition and details of authority, which contains at least provisions regarding voting rights, profit and loss distribution, and appointment of members of the Board of Directors and members of the Board of Commissioners of the Insurance Company or Reinsurance Company; and b. obligations of shareholders that are Foreign Legal Entities to prepare and implement education and training programs according to their field of expertise;
Business plan for the current period that
contains a plan for change in ownership; and
List of share ownership adjustments that
contains the names of shareholders and the total value of shares before the change and after the change.

XVI. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING THE IMPLEMENTATION
OF CHANGE IN OWNERSHIP
NO. DOCUMENT LIST DESCRIPTION

Copy of the minutes of the General Meeting of
Shareholders (RUPS) that approve the change in ownership, accompanied by a letter of acceptance of notification from the competent authority;
Copy of the transfer of rights over shares, if
there is a transfer of rights over shares other than due to sale;
Copy of the sale and purchase deed, in the event of a share sale
between shareholders;
Copy of proof of deposit of additional paid-up capital,
in the event that the addition of paid-up capital is carried out in the form of cash deposits, in the form of:
a. Copy of proof of capital deposit in the name of the relevant company at:

One of the general banks or Sharia
general banks in Indonesia for the company; or
One of the Sharia general banks or
Sharia business units of general banks in Indonesia for Sharia companies, which is legalized by the bank; and b. Copy of proof of placement of paid-up capital in the form of a company bank statement legalized by the bank; and

Copy of the Company's financial report
after the addition of paid-up capital signed by the Company's Directors, if the change in ownership is accompanied by the addition of paid-up capital carried out in the form of:
a. cash deposit; b. conversion/transfer of retained earnings;
c. conversion/transfer of loans;
and/or d. bonus shares.

XVII. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING CHANGE OF COMPANY
NAME
NO. DOCUMENT LIST DESCRIPTION

Copy of the deed of amendment of the articles of association
accompanied by proof of approval from the competent authority for Companies that are in the form of limited liability companies; and
Taxpayer Identification Number (NPWP) in the new
name of the Company.

XVIII. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING CHANGE OF HEAD OFFICE
LOCATION OF THE COMPANY
NO. DOCUMENT LIST DESCRIPTION

Copy of the deed of amendment of the articles of association
accompanied by proof of approval from the competent authority for Companies that are in the form of limited liability companies;
Proof of ownership or control of the new
office building; and
Taxpayer Identification Number (NPWP) for the
new location of the Company.

XIX. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING ADDITION OF PAID-UP CAPITAL
OF THE COMPANY
NO. DOCUMENT LIST DESCRIPTION

Copy of the deed of amendment of the articles of association
accompanied by proof of the letter of acceptance of notification from the competent authority for Companies that are in the form of limited liability companies;
Proof of addition of Paid-up Capital in cash,
which is:
a. copy of proof of capital deposit at one of the general banks, Sharia general banks, or business units of Sharia general banks in Indonesia and legalized by the receiving bank of the deposit, in the event that the addition of Paid-up Capital is carried out in the form of cash; or b. copy of proof of placement of paid-up capital in the form of a Company bank statement legalized by the bank; Funds used for the addition of capital that describe the entire flow of funds from the initial asset source of the shareholder to the funds in question recorded as capital deposits.
Copy of the Company's financial report that has been
audited by a public accountant before the addition of capital, in the event that the addition of Paid-up Capital is carried out in the form of transfer of retained earnings, transfer of loans and/or bonus shares of the Company that is in the form of a limited liability company;
Notarized statement letter from
shareholders stating that:
a. the source of funds for capital participation does not come from money laundering activities, terrorism financing, proliferation financing of weapons of mass destruction and other financial crimes; and b. the source of funds for capital participation does not come from loans;
Copy of the tax notification letter (SPT) for 2 (two)
years before the capital participation is carried out and other documents that demonstrate the financial capacity and source of funds of individual shareholders;
Copy of the shareholder's financial report that
has been audited by a public accountant and the latest financial report, in the event that the shareholder is in the form of a legal entity;
List of capital before the change and
after the change; and
List of share ownership adjustments that
contains the names of shareholders and the total value of shares before the change and after the change.

XX. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING CHANGE OF
BOARD OF DIRECTORS MEMBERS, BOARD OF COMMISSIONERS MEMBERS, AND/OR MEMBERS OF THE SHARIA SUPERVISORY BOARD OF THE COMPANY NO. DOCUMENT LIST DESCRIPTION

Copy of the minutes of the General Meeting of
Shareholders (RUPS) for
Companies that are in the form of limited liability companies; or
Copy of the minutes of the member meeting for
Companies that are in the form of cooperative legal entities and joint ventures;
Copy of proof of the letter of acceptance
of notification from the competent authority for Companies in the form of limited liability companies and cooperative legal entities;
Deed of confirmation of appointment for notarial deeds
that contain conditions for the deferred appointment of the Board of Directors and/or members of the Board of Commissioners or notarial deeds that do not contain conditions for the deferred appointment of the Board of Directors and/or members of the Board of Commissioners, for Companies in the form of joint venture legal entities;
Company organizational structure that
describes the structure, job descriptions, authority, and responsibility of the Board of Directors along with the functions and/or work units under the Board of Directors; and The organizational structure that describes clearly the separation of risk management functions, financial management functions, and service functions.
List of Board of Directors, Sharia Supervisory Board
members and/or Board of Commissioners members before the change and after the change as well as the number and date of the letter of approval for the assessment of competence and propriety.

XXI. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING CHANGE OF NAME
OF SHAREHOLDER
NO. DOCUMENT LIST DESCRIPTION

Copy of the deed of amendment of the articles of association
of the Company's shareholder that contains the change of name of the shareholder accompanied by proof of approval from the competent authority for the Company's shareholder that is in the form of a limited liability company or proof that is equivalent to that; and What is meant by proof that is equivalent to that in this provision is in the event that the Shareholder that changes its name is a Foreign Legal Entity or Indonesian Legal Entity other than limited liability companies and cooperatives.
Deed or letter of change of name of
the Company's shareholder from the relevant authority or proof that is equivalent to that.
The deed or letter of change of name is valid for individual shareholders of the Company (Indonesian citizens or foreign citizens), can be in the form of among others, a deed of change of name.

XXII. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING CHANGE OF ADDRESS
OF HEAD OFFICE AND OFFICES OUTSIDE THE HEAD OFFICE NO. DOCUMENT LIST DESCRIPTION

Copy of proof of ownership or control
over the new office building that shows the name and address of the office of the Company; and
Photos of the exterior of the building and photos of the interior
and layout of the rooms.

XXIII. LIST OF DOCUMENT REQUIREMENTS FOR REQUESTING APPROVAL FOR
COOPERATION IN RELATION TO OWNERSHIP
NO. DOCUMENT LIST DESCRIPTION

Copy of the cooperation agreement between
Companies that carry out cooperation;
Standard Operating Procedures for
Sharia Insurance Companies or
Sharia Reinsurance Companies and
Insurance Companies or Reinsurance Companies for the implementation of cooperation; Standard operating procedures contain among other things definitions and schemes, process flow (flowchart), related work units, responsible work units, implementation procedures, supervision procedures including compliance with Sharia Principles, and problem handling procedures.
Opinion of the Sharia Supervisory Board (DPS) regarding the implementation of cooperation;
The DPS opinion aims to ensure that the implementation of cooperation is not contrary to Sharia Principles.
Report on the readiness to implement cooperation;
and
What is meant by "readiness report" among other things operational readiness which includes readiness of human resources, information technology, and other supporting facilities as well as test results (if any). Readiness of human resources among other things human resources of the Insurance Company or Reinsurance Company that has adequate knowledge regarding products and activities of the Insurance Company Sharia and Sharia Reinsurance Companies including understanding of Sharia Principles and contracts used in products and activities of Sharia Insurance Companies or Sharia Reinsurance Companies. Readiness of information technology among other things information system technology that allows for separate recording of transactions with the recording of transactions of Insurance Companies and Reinsurance Companies.
Letter of statement from the Company director who
oversees the compliance function regarding the completeness and truthfulness of the document requirements for the submission of the request for approval.

XXIV. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING THE CESSATION OF COOPERATION
IN RELATION TO OWNERSHIP
NO. DOCUMENT LIST DESCRIPTION

Reasons for cessation; and
Explanation regarding the steps that will be
taken by the Company in the context of settlement related to the cessation of cooperation.
What is meant by settlement related to the cessation of cooperation is the settlement of obligations both to the Insurance Company or Reinsurance Company and to other parties (if any).

Determined in Jakarta on December 20, 2023
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,
MAHENDRA SIREGAR signed

Financial Services Authority Regulation Number 23 of 2023 Concerning Business Licensing and Institutional Aspects of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies

Lineage: Amended

Timeline