Financial Services Authority Regulation Number 23/POJK.04/2016 on Collective Investment Contract Mutual Funds

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 23 /POJK.04/2016
CONCERNING
COLLECTIVE INVESTMENT CONTRACT MUTUAL FUNDS
BY THE GRACE OF GOD THE ALMIGHTY,
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to support the healthy development and growth of Mutual Funds and to enhance the competitiveness of the Mutual Fund industry internationally, it is necessary to improve the regulations governing the management of Mutual Funds in the form of Collective Investment Contracts; b. that based on the considerations referred to in letter a, it is necessary to establish a Financial Services Authority Regulation concerning Collective Investment Contract Mutual Funds;

Recalling:

1. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);

DECIDING:
Establishing: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING COLLECTIVE INVESTMENT CONTRACT MUTUAL FUNDS.

CHAPTER I
GENERAL PROVISIONS

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

1. Mutual Fund is a vehicle used to gather funds from investor public to be subsequently invested in a Securities Portfolio by an Investment Manager.

2. Collective Investment Contract is a contract between an Investment Manager and a Custodian Bank that binds Unit Holders, whereby the Investment Manager is authorized to manage the collective investment portfolio and the Custodian Bank is authorized to carry out Collective Custody.

3. Unit of Participation is a unit of measurement indicating each Party's interest portion in the collective investment portfolio.

4. Investment Manager is a Party whose business activities manage Securities Portfolios for clients or manage collective investment portfolios for a group of clients, except insurance companies, pension funds, and banks that conduct their own business activities based on legislation.

5. Custodian is a Party that provides services for the safekeeping of Securities and other assets related to Securities, as well as other services, including receiving dividends, interest, and other rights, settling Securities transactions, and representing account holders who are its clients.

6. Custodian Bank is a General Bank that has received approval from the Financial Services Authority as a Custodian Bank.

7. Registration Statement is a document that must be submitted to the Financial Services Authority by an Issuer in the context of a Public Offering or as a Public Company.

8. Prospectus is any written information related to a Public Offering with the aim for other Parties to purchase Securities.

9. Debt-type Securities are Securities that indicate a creditor-debtor relationship between the Security holder (creditor) and the Party issuing the Security (debtor).

10. Fair Market Value of Securities is the value that can be obtained from Securities transactions conducted between free Parties not under coercion or liquidation.

11. Unit of Participation Transaction is a transaction in the context of selling, buying back, settling, and/or transferring Units of Participation of a Mutual Fund to Units of Participation of another Mutual Fund managed by the same Investment Manager.

12. Affiliation is:
    a. family relationship due to marriage and descent up to the second degree, both horizontally and vertically; b. relationship between a Party and its employees, directors, or commissioners;
    c. relationship between 2 (two) companies where there is 1 (one) or more members of the board of directors or board of commissioners that are the same;
    d. relationship between a company and a Party, directly or indirectly, controlling or being controlled by said company; e. relationship between 2 (two) companies controlled, directly or indirectly, by the same Party; or f. relationship between a company and a major shareholder.

13. Sharia Securities are Securities as referred to in the Capital Market Law and its implementing regulations that:
    a. the contract, management method, and business activities; b. the assets that form the basis of the contract, management method, and business activities; and/or
    c. assets related to said Securities and their issuer,
    do not contradict Sharia Principles in the Capital Market.

CHAPTER II
GUIDELINES FOR THE MANAGEMENT OF COLLECTIVE INVESTMENT CONTRACT MUTUAL FUNDS

Article 2
(1) Investment Managers and Custodian Banks must, in good faith and with full responsibility, perform their duties as best as possible for the interest of the Mutual Fund in accordance with legislation. (2) In the event that the Investment Manager and/or Custodian Bank does not fulfill its obligations as referred to in paragraph (1), the respective Investment Manager and/or Custodian Bank must be responsible for all losses arising from their respective actions.

First Section
Name of Collective Investment Contract Mutual Fund

Article 3
(1) The name of a Collective Investment Contract Mutual Fund must describe:
a. the name of the Investment Manager; b. a name reflecting the type of Mutual Fund; and
c. the foreign currency denomination used, if using a currency other than Rupiah.
(2) The name of a Collective Investment Contract Mutual Fund is prohibited from:
a. being the same as the name of another Mutual Fund; b. containing expressions that the Mutual Fund has certain benefits that may not be true;
c. containing expressions that the Investment Manager has certain advantages that may not be true; and/or
d. being inconsistent with the investment policy of the Mutual Fund.

Second Section
Securities Portfolio of Collective Investment Contract Mutual Fund

Article 4
(1) The Investment Manager must determine the composition of the Securities Portfolio of the Collective Investment Contract Mutual Fund with the following provisions:
a. at least 85% (eighty-five percent) of the Net Asset Value of the Mutual Fund must be invested in:

1. Securities issued, offered, and/or traded in Indonesia based on Indonesian legislation;
2. Securities traded abroad, but issued by:
   a) The Government of the Republic of Indonesia; b) Indonesian legal entities that are Issuers and/or Public Companies; c) Foreign legal entities whose majority or all shares are directly or indirectly owned by Issuers or Public Companies as referred to in letter b) and the foreign legal entity is specifically established to gather funds from abroad for the interest of said Issuer or Public Company; and/or d) Foreign legal entities whose majority or all shares are directly or indirectly owned by State-Owned Enterprises; and/or
3. domestic money market instruments;
   b. at most 15% (fifteen percent) of the Net Asset Value of the Mutual Fund must be invested in Securities traded on foreign Stock Exchanges whose information can be accessed from Indonesia through mass media or websites. (2) In the event that investment in a Collective Investment Contract Mutual Fund is made in Securities traded abroad issued by foreign legal entities as referred to in paragraph (1) letter a number 2 letter c) and/or letter d), the Investment Manager of said Mutual Fund must provide information regarding the name and percentage of ownership of the Issuer, Public Company, and/or State-Owned Enterprise that directly or indirectly owns the foreign legal entity issuing said Securities to the Custodian Bank simultaneously with the submission of payment settlement transaction instructions to the Custodian Bank.

Article 5
(1) Investment in a Collective Investment Contract Mutual Fund may only consist of:
a. Securities offered through a Public Offering and/or traded on Stock Exchanges inside or outside the country; b. Securities issued and/or guaranteed by the Government of the Republic of Indonesia, and/or Securities issued by international institutions where the Government of the Republic of Indonesia is a member;
c. Debt-type Securities or fixed-income Sharia Securities offered not through a Public Offering and which have received a rating from a Securities Rating Agency;
d. Asset-Backed Securities offered not through a Public Offering and which have received a rating from a Securities Rating Agency; e. Domestic money market Securities with a maturity of not more than 1 (one) year, both in Rupiah and in foreign currencies; f. Units of Participation of Real Estate Investment Funds in the form of Collective Investment Contracts offered not through a Public Offering; g. Derivative Securities; and/or h. Other Securities determined by the Financial Services Authority. (2) Debt-type Securities or fixed-income Sharia Securities offered not through a Public Offering as referred to in paragraph (1) letter c must meet the following criteria:
a. issued by:

1. Issuers or Public Companies;
2. Subsidiaries of Issuers or Public Companies that receive full guarantees from said Issuers or Public Companies;
3. State-Owned Enterprises or subsidiaries of State-Owned Enterprises;
4. The Government of the Republic of Indonesia;
5. Regional Governments; and/or
6. Financial Service Institutions that have received business licenses or are under the supervision of the Financial Services Authority;
   b. have an investment-grade rating and are rated at least once every 1 (one) year; and
   c. are included in Collective Custody at the Settlement and Custody Institution.
   (3) Derivative Securities as referred to in paragraph (1) letter g must meet the following criteria:
   a. traded at:
7. Stock Exchanges; or
8. Off-Exchange, with the provisions:
   a) the issuer (counterparty) of the derivative is a Financial Service Institution that has received a business license and/or is under the supervision of the Financial Services Authority and has received an investment-grade rating from a Securities Rating Agency; b) valuation is done daily and fairly; and c) Derivative Securities can be sold or have their positions closed through offsetting transactions at any time at fair value. b. have a derivative underlying object basis consisting of:
9. Securities; or
10. Securities Indices, as long as they meet the following provisions:
    a) the value of the Securities Index is published daily through mass media; and b) information about the Securities Index is published and available to the public; and
    c. do not have the potential for losses greater than the initial exposure value at the time of purchasing said Derivative Securities.

Article 6
(1) The Investment Manager is prohibited from taking actions that could cause the Collective Investment Contract Mutual Fund to:
a. hold Securities traded on foreign Stock Exchanges whose information cannot be accessed from Indonesia through mass media or websites; b. hold Securities issued by 1 (one) Indonesian legal entity or foreign legal entity traded on a foreign Stock Exchange exceeding 5% (five percent) of the paid-up capital of said company or exceeding 10% (ten percent) of the Net Asset Value of the Mutual Fund at any time;
c. hold Equity-type Securities issued by a company that has listed its Securities on a Stock Exchange in Indonesia exceeding 5% (five percent) of the paid-up capital of said company;
d. hold Securities issued by 1 (one) Party exceeding 10% (ten percent) of the Net Asset Value of the Mutual Fund at any time; e. hold Derivative Securities:

1. traded off-Exchange with 1 (one) Financial Service Institution as referred to in Article 5 paragraph (3) letter a number 2 with an exposure value exceeding 10% (ten percent) of the Net Asset Value of the Mutual Fund at any time; and
2. with a global net exposure value exceeding 20% (twenty percent) of the Net Asset Value of the Mutual Fund at any time;
   f. hold Asset-Backed Securities offered through a Public Offering exceeding 20% (twenty percent) of the Net Asset Value of the Mutual Fund at any time, with the provision that each series of Asset-Backed Securities does not exceed 10% (ten percent) of the Net Asset Value of the Mutual Fund at any time; g. hold Debt-type Securities, fixed-income Sharia Securities, Asset-Backed Securities, and/or Units of Participation of Real Estate Investment Funds offered not through a Public Offering issued by 1 (one) Party exceeding 5% (five percent) of the Net Asset Value of the Mutual Fund at any time or collectively exceeding 15% (fifteen percent) of the Net Asset Value of the Mutual Fund at any time; h. hold Units of Participation of a Real Estate Investment Fund in the form of a Collective Investment Contract offered through a Public Offering exceeding 20% (twenty percent) of the Net Asset Value of the Mutual Fund at any time, with the provision that each Real Estate Investment Fund does not exceed 10% (ten percent) of the Net Asset Value of the Mutual Fund at any time;
   i. hold Units of Participation of a Real Estate Investment Fund in the form of a Collective Investment Contract, if the Real Estate Investment Fund in the form of a Collective Investment Contract and the Collective Investment Contract Mutual Fund are managed by the same Investment Manager;
   j. hold Securities Portfolios consisting of Securities issued by Parties affiliated with the Investment Manager exceeding 20% (twenty percent) of the Net Asset Value of the Mutual Fund at any time, except for Affiliation relationships arising from ownership or capital participation by the Government of the Republic of Indonesia; k. hold Securities issued by Unit Holders and/or affiliated Parties of Unit Holders based on commitments agreed upon by the Investment Manager with Unit Holders and/or affiliated Parties of Unit Holders;
   l. buy Securities from prospective or Unit Holders and/or affiliated Parties of prospective or Unit Holders unless done at a fair market price;
   m. engage in activities other than investment, reinvestment, or trading of Securities as referred to in this Financial Services Authority Regulation; n. engage in the sale of Securities not yet owned; o. engage in margin transactions; p. receive direct loans, including issuing bonds or other debt-type Securities, except for short-term loans with a maximum duration of 1 (one) month in the context of fulfilling buy-back and/or settlement transactions, up to a maximum of 10% (ten percent) of the Mutual Fund portfolio value at the time the loan occurs; q. provide direct loans, except for the purchase of bonds, other debt-type Securities, and/or depositing funds in banks; r. buy Securities currently being offered in a Public Offering, if the Securities Underwriter of said Public Offering is a Securities Company that is the Investment Manager itself or an Affiliate of said Investment Manager, except:
3. Debt-type Securities offered receive an investment-grade rating; and/or
4. there is excess buy demand for the offered Securities;
   s. engage in joint transactions or profit-sharing contracts with the Investment Manager itself or Affiliates of said Investment Manager; t. buy Asset-Backed Securities, if:
5. said Asset-Backed Securities and the Collective Investment Contract Mutual Fund in question are managed by the same Investment Manager; and/or
6. the Investment Manager of the Collective Investment Contract Mutual Fund is affiliated with the initial creditor of said Asset-Backed Securities, except if such Affiliation arises from ownership or capital participation by the Government; and
   u. engage in securities sale transactions with a repurchase agreement and securities purchase transactions with a resale agreement.
   (2) The prohibitions as referred to in paragraph (1) letter d do not apply to:
   a. Bank Indonesia Certificates; b. Securities issued and/or guaranteed by the Government of the Republic of Indonesia; and/or
   c. Securities issued by international financial institutions where the Government of the Republic of Indonesia is a member.
   (3) The prohibition as referred to in paragraph (1) letter g does not apply to Debt-type Securities and/or fixed-income Sharia Securities issued by the Government of the Republic of Indonesia and/or Regional Governments. (4) The prohibition for Collective Investment Contract Mutual Funds to buy Securities offered through a Public Offering from Parties affiliated with the Investment Manager as referred to in paragraph (1) letter r does not apply if the Affiliation relationship arises from ownership or capital participation by the Government.

Article 7
(1) In the event that the composition of the Securities Portfolio of the Collective Investment Contract Mutual Fund does not comply with the provisions as referred to in Article 4 paragraph (1), Article 6 paragraph (1) letter b, letter c, letter d, letter e, letter f, letter g, letter h, letter j, and letter p and/or the investment policy established in the Collective Investment Contract which is not caused by transaction actions taken by the Investment Manager, at the latest 2 (two) trading days since the change in the composition of the Securities Portfolio of the Collective Investment Contract Mutual Fund occurred, the Custodian Bank must provide a notification letter to the Investment Manager. (2) The Investment Manager must adjust the composition of the Securities Portfolio of the Collective Investment Contract Mutual Fund in accordance with the provisions as referred to in Article 4 paragraph (1), Article 6 paragraph (1) letter b, letter c, letter d, letter e, letter f, letter g, letter h, letter j, and letter p and/or the investment policy established in the Collective Investment Contract at the latest 20 (twenty) trading days since receiving the notification letter from the Custodian Bank, and the adjustment period may be extended solely for the interest of the Mutual Fund and Unit Holders as long as it has received approval from the Custodian Bank. (3) The adjustment of the composition of the Securities Portfolio of the Collective Investment Contract Mutual Fund as referred to in paragraph (2) must be submitted by the Investment Manager to the Custodian Bank at the latest 2 (two) working days since the adjustment was made, with a copy to the Financial Services Authority.

Article 8
(1) In the event that the composition of the Securities Portfolio of the Collective Investment Contract Mutual Fund does not comply with the provisions as referred to in Article 4 paragraph (1), Article 6 paragraph (1) letter b, letter c, letter d, letter e, letter f, letter g, letter h, letter j, and letter p and/or the investment policy established in the Collective Investment Contract which is caused by transaction actions taken by the Investment Manager, then at the latest 2 (two) trading days since the change in the composition of the Securities Portfolio of the Collective Investment Contract Mutual Fund occurred, the Custodian Bank must provide a notification letter to the Investment Manager with a copy to the Financial Services Authority. (2) The Investment Manager must adjust the composition of the Securities Portfolio of the Collective Investment Contract Mutual Fund in accordance with the provisions as referred to in Article 4 paragraph (1), Article 6 paragraph (1) letter b, letter c, letter d, letter e, letter f, letter g, letter h, letter j, and letter p and/or the investment policy established in the Collective Investment Contract at the latest 10 (ten) trading days since receiving the notification letter from the Custodian Bank. (3) In the event that the composition of the Securities Portfolio of the Collective Investment Contract Mutual Fund is still not in accordance with the provisions as referred to in Article 4 paragraph (1), Article 6 paragraph (1) letter b, letter c, letter d, letter e, letter f, letter g, letter h, letter j, and letter p or the investment policy established in the Collective Investment Contract within the time period as referred to in paragraph (2), the Custodian Bank must report this matter to the Financial Services Authority with a copy to the Investment Manager at the latest 2 (two) trading days since the end of the adjustment deadline as referred to in paragraph (2).

Article 9
The Investment Manager is prohibited from making changes to the investment policy of the Collective Investment Contract Mutual Fund, except in the context of:
a. adjustment to new regulations and/or changes in legislation; and/or b. adjustment to specific conditions established by the Financial Services Authority.

Article 10
The Custodian Bank must make payments for the purchase of Securities and other investments that will become part of the Securities Portfolio of the Collective Investment Contract Mutual Fund or receive payments for the sale of Securities or liquidation of other investments in the Securities Portfolio of the Collective Investment Contract Mutual Fund conducted by the Investment Manager.

Article 11
The Custodian Bank must reject the Investment Manager's instructions in writing with a copy to the Financial Services Authority if the instructions, upon receipt by the Custodian Bank, clearly violate legislation in the Capital Market sector and/or the Collective Investment Contract of the Mutual Fund.

Third Section
Net Asset Value of Mutual Funds

Article 12
The Custodian Bank must calculate the Net Asset Value per Unit of Participation of the Collective Investment Contract Mutual Fund every trading day and announce it through mass media.

Article 13
Collective Investment Contract Mutual Funds must use Rupiah denomination unless the majority of the Securities Portfolio of the Collective Investment Contract Mutual Fund is denominated in foreign currency.

Article 14
(1) The initial Net Asset Value for each Unit of Participation of a Mutual Fund must be set at Rp1,000.00 (one thousand Rupiah) based on the Fair Market Value of the Securities Portfolio of the Collective Investment Contract Mutual Fund submitted by the Investment Manager to the Custodian Bank. (2) The initial Net Asset Value for each Unit of Participation of a Mutual Fund using foreign currency denomination must be set at US$ 1 (one United States Dollar) or EUR 1 (one Euro), or in a specific amount of other foreign currencies after receiving approval from the Financial Services Authority. (3) The Net Asset Value of the Mutual Fund as referred to in paragraph (1) and paragraph (2) is subsequently calculated based on the Fair Market Value of the Securities Portfolio of the Collective Investment Contract Mutual Fund submitted by the Investment Manager to the Custodian Bank. (4) The initial Net Asset Value for each Unit of Participation of a Collective Investment Contract Mutual Fund whose Units of Participation are traded on a Stock Exchange may not follow the provisions as referred to in paragraph (1), as long as it is regulated in the Collective Investment Contract and stated in the Prospectus of the Collective Investment Contract Mutual Fund whose Units of Participation are traded on a Stock Exchange.

Article 15
(1) In the context of calculating the Net Asset Value of an open-ended Collective Investment Contract Mutual Fund by the Custodian Bank, the Investment Manager must calculate the Fair Market Value of Securities in the Securities Portfolio of the Collective Investment Contract Mutual Fund every trading day and submit it immediately to the Custodian Bank.

(2) The calculation and submission of the Fair Market Value of Securities in the Portfolio of Securities of a Mutual Fund in the form of a Collective Investment Contract as referred to in paragraph (1) must be carried out in accordance with the laws and regulations in the Capital Market sector regulating the Fair Market Value of Securities in the Portfolio of Mutual Funds.

Fourth Part
Transactions of Units of Mutual Funds in the form of Collective Investment Contracts

Article 16
The Investment Manager must formulate the procedures for Transactions of Units of Mutual Funds in the form of Collective Investment Contracts.

Article 17
(1) The Investment Manager must ensure that all funds for the purchase of Units of Mutual Funds in the form of Collective Investment Contracts are credited to the account in the name of the Mutual Fund at the Custodian Bank no later than the end of the trading day upon submission of the complete purchase transaction order. (2) The purchase funds for Units of Mutual Funds in the form of Collective Investment Contracts as referred to in paragraph (1) may only originate from:
a. prospective holders of Units of Mutual Funds in the form of Collective Investment Contracts; b. family members of prospective holders of Units of Mutual Funds in the form of Collective Investment Contracts;
c. the company where the prospective holder of Units of Mutual Funds in the form of Collective Investment Contracts works; and/or
d. the Investment Manager, Mutual Fund Securities Sales Agents, and/or associations related to the Mutual Fund, for the provision of prizes in the context of marketing activities for Units of Mutual Funds in the form of Collective Investment Contracts. (3) Funds originating from parties as referred to in paragraph (2) letters b, c, and d must be accompanied by an attachment of a statement letter and supporting evidence showing the relationship between the prospective holder of Units of Mutual Funds in the form of Collective Investment Contracts and the said party.

Article 18
(1) Transaction orders for Units of Mutual Funds from unit holders received in complete form by the Investment Manager:
a. up to 13:00 Western Indonesia Time must be processed based on the Net Asset Value of the Mutual Fund established at the end of the relevant trading day; or b. after 13:00 Western Indonesia Time must be processed based on the Net Asset Value of the Mutual Fund established at the end of the following trading day. (2) Regulations regarding Transactions of Units of Mutual Funds for Mutual Funds in the form of Collective Investment Contracts whose Units are traded on the Stock Exchange may not follow the regulations regarding Transactions of Units of Mutual Funds as referred to in paragraph (1) as long as they are included in the Collective Investment Contract and Prospectus of Mutual Funds in the form of Collective Investment Contracts whose Units are traded on the said Stock Exchange.

Article 19
(1) Transactions for the transfer of Units of Mutual Funds in the form of Collective Investment Contracts to Units of other Mutual Funds may only be conducted between Mutual Funds managed by the same Investment Manager. (2) Transactions for the transfer of Units of Mutual Funds in the form of Collective Investment Contracts to Units of other Mutual Funds are conducted through a mechanism of repurchasing Units of one Mutual Fund and selling Units of other Mutual Funds in the form of Collective Investment Contracts simultaneously, using the Net Asset Value per Unit of each Mutual Fund according to the time the complete transfer order is received as referred to in Article 18. (3) The Investment Manager must ensure that funds from the results of the transfer transaction of Units of Mutual Funds in the form of Collective Investment Contracts as referred to in paragraph (2) are received into the account of the said Mutual Fund at the Custodian Bank no later than 4 (four) trading days since the receipt of the complete transfer order.

Article 20
(1) For operational purposes of Transactions of Units of Mutual Funds, the Custodian Bank may open accounts in the name of the Mutual Fund at other banks upon written request from the Investment Manager. (2) Accounts in the name of the Mutual Fund at other banks as referred to in paragraph (1) must be administered by the Custodian Bank for the benefit of the said Mutual Fund.

Article 21
The Investment Manager on behalf of open-ended Mutual Funds in the form of Collective Investment Contracts must conduct repurchases of Units of Mutual Funds in the form of Collective Investment Contracts sold by unit holders.

Article 22
The Custodian Bank must ensure that funds from the repurchase or liquidation of Units of Mutual Funds are delivered to the bank account in the name of the holder of Units of Mutual Funds in the form of Collective Investment Contracts.

Article 23
(1) The Investment Manager may reject repurchases and/or settlement or instruct Mutual Fund Securities Sales Agents to reject repurchases and/or settlement if the following occurs:
a. The Stock Exchange where most of the Portfolio Securities of Mutual Funds in the form of Collective Investment Contracts are traded is closed; b. trading of Securities for most of the Portfolio Securities of Mutual Funds in the form of Collective Investment Contracts on the Stock Exchange is halted;
c. a state of emergency; or
d. other matters established in the Collective Investment Contract after obtaining approval from the Financial Services Authority.
(2) The rejection of repurchases and/or settlement as referred to in paragraph (1) is carried out after the Investment Manager notifies the Financial Services Authority in writing, with a copy to the Custodian Bank. (3) In the event that the policy of rejecting repurchases and/or settlement as referred to in paragraph (1) is applied, the following regulations apply:
a. The Investment Manager is prohibited from selling new Units of Mutual Funds; and b. The Custodian Bank is prohibited from issuing new Units of Mutual Funds, during the period of rejection of repurchases and/or settlement as mentioned.

(4) The Investment Manager must notify unit holders in writing if they take actions as referred to in paragraph (1) no later than 1 (one) working day after the date the repurchase and/or settlement order is received by the Investment Manager.

Article 24
Payment for the repurchase or settlement of Units of Mutual Funds is made no later than 7 (seven) trading days since the complete repurchase order has been received by the Investment Manager.

Fifth Part
Transfer of Ownership of Units of Mutual Funds in the form of Collective Investment Contracts

Article 25
(1) Ownership of Units of Mutual Funds in the form of Collective Investment Contracts may only be transferred or assigned by unit holders to other parties without going through the mechanisms of sale, repurchase, or settlement in the context of:
a. inheritance; or b. donation.
(2) The transfer of ownership of Units of Mutual Funds in the form of Collective Investment Contracts as referred to in paragraph (1) must be notified by heirs, donors, or donees to the Investment Manager or Mutual Fund Securities Sales Agents with supporting evidence in accordance with laws and regulations for subsequent administration at the Mutual Fund Custodian Bank. (3) The transfer of ownership of Units of Mutual Funds in the form of Collective Investment Contracts as referred to in paragraph (1) must be conducted in accordance with laws and regulations. (4) The Investment Manager managing the Mutual Fund or Mutual Fund Securities Sales Agents appointed by the Investment Manager must apply the customer due diligence principle, as regulated in the Financial Services Authority Regulation regarding Customer Due Diligence Principles by Financial Service Providers in the Capital Market Sector, towards parties receiving the transfer of ownership of Units of Mutual Funds in the context of inheritance and/or donation as referred to in paragraph (1).

Sixth Part
Issuance of Units of Mutual Funds in the form of Collective Investment Contracts

Article 26
The Custodian Bank must:
a. manage the issuance of Units of Mutual Funds in the form of Collective Investment Contracts; b. make payments for repurchases or settlements of Units of Mutual Funds in the form of Collective Investment Contracts to unit holders;
c. maintain Mutual Fund accounting; and
d. take necessary actions to fulfill obligations according to the Mutual Fund Collective Investment Contract.

Article 27
(1) The Custodian Bank must ensure that Units of Mutual Funds in the form of Collective Investment Contracts are issued after receiving the complete purchase order for Units of Mutual Funds in the form of Collective Investment Contracts and receiving funds into the Mutual Fund account administered by the Custodian Bank. (2) For transactions transferring Units of one Mutual Fund to Units of other Mutual Funds, the Custodian Bank must ensure that the issuance of Units of Mutual Funds in the form of Collective Investment Contracts is conducted after the complete transfer order is received by the Investment Manager or Mutual Fund Securities Sales Agents.

Seventh Part
Confirmation of Ownership of Units of Mutual Funds and Reports to Unit Holders of Mutual Funds in the form of Collective Investment Contracts

Article 28
(1) The Custodian Bank must issue and deliver written confirmation letters or evidence of ownership of Units of Mutual Funds in the form of Collective Investment Contracts regarding the execution of unit holder orders directly to unit holders. (2) The written confirmation letters or evidence of ownership of Units of Mutual Funds in the form of Collective Investment Contracts as referred to in paragraph (1) must:
a. be sent to unit holders no later than 7 (seven) trading days after Units of Mutual Funds are issued, for the sale of Units of Mutual Funds; or b. be sent to unit holders no later than 7 (seven) trading days after the complete repurchase order for Units of Mutual Funds is received, for the repurchase of Units of Mutual Funds. (3) The delivery of written confirmation letters or evidence of ownership of Units of Mutual Funds in the form of Collective Investment Contracts to unit holders as referred to in paragraph (1) may be conducted through:
a. electronic media, if approval has been obtained from unit holders of Mutual Funds in the form of Collective Investment Contracts; and/or b. delivery services.

Article 29
(1) The Custodian Bank must deliver Mutual Fund reports to each unit holder of Mutual Funds in the form of Collective Investment Contracts in accordance with regulations as regulated in the laws and regulations in the Capital Market sector regulating Mutual Fund reports. (2) Reports to each unit holder of Mutual Funds in the form of Collective Investment Contracts as referred to in paragraph (1) are delivered through:
a. electronic media, if approval has been obtained from unit holders of Mutual Funds; and/or b. delivery services.

Eighth Part
Costs in the Management of Mutual Funds

Article 30
In the management of Mutual Funds in the form of Collective Investment Contracts, costs borne by the Investment Manager include:
a. costs for the preparation of the establishment of Mutual Funds; b. costs for the administration of Mutual Fund management;
c. marketing costs;
d. costs for printing and distribution of account opening forms and transaction forms; e. costs for printing and distribution of the initial Prospectus; f. costs for the liquidation of Mutual Funds; and g. costs for the services of the Supervisory Board and/or experts, if related to the management of Sharia-compliant Mutual Funds.

Article 31
(1) In the management of Mutual Funds in the form of Collective Investment Contracts, costs borne by the Mutual Fund include:
a. Investment Manager management fees; b. Custodian Bank fees;
c. Portfolio Securities insurance costs for Mutual Funds, if any;
d. transaction costs for the purchase and/or sale of Portfolio Securities; e. costs for the renewal of the Prospectus and its distribution; f. costs for the services of Auditors who examine the Annual Financial Reports of Mutual Funds; and g. other costs established in the contract. (2) The Custodian Bank must pay costs borne by the Mutual Fund as referred to in paragraph (1) according to the Investment Manager's instructions.

Article 32
In the management of Mutual Funds in the form of Collective Investment Contracts, costs borne by unit holders include:
a. sales costs, if any; b. repurchase and/or settlement costs, if any;
c. costs for transferring Units of one Mutual Fund to Units of other Mutual Funds, if any; and
d. fund transfer costs related to Transactions of Units of Mutual Funds, if any.

Article 33
(1) In addition to the costs referred to in Article 30, Article 31, and Article 32, there are other costs in the management of Mutual Funds in the form of Collective Investment Contracts, including:
a. Legal Consultant fees; b. Notary fees; and/or
c. Accountant fees.
(2) Costs as referred to in paragraph (1) are borne by the Investment Manager, Custodian Bank, and/or Mutual Fund according to the party that benefits or makes the error requiring the professional services mentioned.

Ninth Part
Transactions of Units of Mutual Funds Through Other Parties

Article 34
(1) The Investment Manager may cooperate with Mutual Fund Securities Sales Agents regarding the implementation of Transactions of Units of Mutual Funds.
(2) Cooperation with Mutual Fund Securities Sales Agents as referred to in paragraph (1) is conducted based on a written agreement between the Investment Manager and the Mutual Fund Securities Sales Agents. (3) The cooperation agreement between the Investment Manager and Mutual Fund Securities Sales Agents as referred to in paragraph (2) must:
a. be made in the Indonesian language; b. contain matters as regulated in the Financial Services Authority Regulation regarding Mutual Fund Securities Sales Agents; and
c. be submitted by the Investment Manager to the Financial Services Authority no later than 7 (seven) working days after the agreement is signed.
(4) The cooperation agreement between the Investment Manager and Mutual Fund Securities Sales Agents as referred to in paragraph (2) must be notified to the Mutual Fund Custodian Bank.

Article 35
(1) In selling Mutual Fund Securities, the Investment Manager may cooperate with other parties who have:
a. a wide network in their business activities in the form of providing sales venues or outlets; and/or b. electronic systems that have been tested for reliability.
(2) Other parties who have electronic systems that have been tested for reliability as referred to in paragraph (1) letter b must first obtain permission, approval, or recognition from the competent authority. (3) The cooperation agreement between the Investment Manager and other parties as referred to in paragraph (1) must:
a. be made in writing in the Indonesian language; b. consider regulations related to Transactions of Units of Mutual Funds as regulated in this Financial Services Authority Regulation and other related regulations in the Capital Market sector, and at least contain:

1. the identity of each party;
2. the rights and obligations of each party;
3. remuneration for outlet owners and/or electronic system owners and costs;
4. the duration of the agreement; and
5. agreement termination provisions.
   (4) The cooperation agreement between the Investment Manager and other parties as referred to in paragraph (3) must be submitted by the Investment Manager to the Financial Services Authority no later than 7 (seven) working days after the agreement is signed. (5) The first sale of Units of Mutual Funds to prospective unit holders conducted by the Investment Manager through sales outlets must be carried out by marketing personnel of the Investment Manager who hold a Securities Company Representative or Mutual Fund Securities Sales Agent Representative license. (6) Investment Managers who cooperate with other parties in the context of Transactions of Units of Mutual Funds as referred to in paragraph (1) must:
   a. be responsible for Transactions of Units of Mutual Funds conducted by cooperating parties; b. be responsible for applying customer due diligence principles in accordance with the Financial Services Authority Regulation regarding Customer Due Diligence Principles by Financial Service Providers in the Capital Market Sector;
   c. ensure the reliability and security of existing systems in accordance with laws and regulations; and
   d. have standard operating procedures related to Transactions of Units of Mutual Funds conducted by cooperating parties.

Tenth Part
Electronic Transactions of Units of Mutual Funds

Article 36
(1) In conducting Transactions of Units of Mutual Funds electronically, the Investment Manager may use electronic systems built by the Investment Manager itself or by other parties who have cooperation with the Investment Manager. (2) Regulations regarding the procedures for Transactions of Units of Mutual Funds using electronic systems as referred to in paragraph (1) are regulated by a Circular Letter of the Financial Services Authority.

Article 37
(1) Payments for the purchase of Units of Mutual Funds may use electronic payment systems and/or bank account debit mechanisms in accordance with laws and regulations.
(2) Payments for the repurchase or settlement of Units of Mutual Funds may use electronic payment systems and/or bank account crediting mechanisms for unit holders in accordance with laws and regulations.

Eleventh Part
Storage, Recording, and Accounting of Wealth of Mutual Funds in the form of Collective Investment Contracts

Article 38
(1) The Investment Manager must store all wealth of Mutual Funds at the Custodian Bank.
(2) The Custodian Bank administering Mutual Funds must:
a. provide Collective Safekeeping and Custodian services regarding the wealth of Mutual Funds; and b. register or record the wealth of Mutual Funds in the name of the said Custodian Bank for the benefit of unit holders in accordance with laws and regulations, and take necessary actions related to the registration or recording of the said wealth.

Article 39
(1) The Investment Manager must:
a. store and maintain all accounting and important records in accordance with duties and responsibilities based on the Collective Investment Contract, relating to:

1. Mutual Fund financial reports; and
2. Mutual Fund management,
   for at least 5 (five) years since the Mutual Fund was liquidated; and b. separate accounting and records as referred to in letter a from the accounting and records of the Investment Manager, other clients, and other products of the Investment Manager. (2) The Custodian Bank must store and maintain separate records showing:
   a. all accounting and important records in accordance with duties and responsibilities based on the Collective Investment Contract, relating to:
3. financial reports; and
4. Mutual Fund management,
   for at least 5 (five) years since the Mutual Fund was liquidated; b. all changes in the number of Units of Mutual Funds for at least 5 (five) years since the Mutual Fund was liquidated; and
   c. the number of Units of Mutual Funds owned by each unit holder, name, nationality, address, and other identities of unit holders for at least 5 (five) years since the unit holder's Mutual Fund account was closed.

Twelfth Part
Replacement of Custodian Banks

Article 40
(1) The Investment Manager may replace the Custodian Bank in cases where:
a. the Custodian Bank is proven to have committed errors or negligence in executing the Collective Investment Contract or laws and regulations; b. the Custodian Bank no longer has legal capacity or ability to execute duties and obligations based on the Collective Investment Contract; and/or
c. there is a mutual agreement between the Investment Manager and the Custodian Bank.
(2) The replacement of the Custodian Bank as referred to in paragraph (1) is conducted after obtaining approval from the Financial Services Authority.

Article 41
The Custodian Bank must be responsible for duties as Custodian Bank until a replacement Custodian Bank exists.

Thirteenth Part
Changes in Board of Directors, Commissioners, and Shareholders

Article 42
(1) The Investment Manager must notify the Custodian Bank in writing of any changes in members of the Board of Directors, Commissioners, and/or controlling shareholders of the Investment Manager, with a copy to the Financial Services Authority. (2) The Custodian Bank must notify the Investment Manager in writing of any changes in persons in charge, members of the Board of Directors, Commissioners, and/or controlling shareholders of the bank serving as the Custodian Bank, with a copy to the Financial Services Authority.

Fourteenth Part
Annual Financial Reports of Mutual Funds in the form of Collective Investment Contracts

Article 43
(1) The Investment Manager and Custodian Bank must be responsible for preparing the annual financial reports of Mutual Funds according to their respective functions and obligations as referred to in the Collective Investment Contract. (2) The fiscal year of Mutual Funds starts from January 1 and ends on December 31. (3) The annual financial reports of Mutual Funds must be audited by Auditors registered with the Financial Services Authority. (4) The annual financial reports of Mutual Funds must be signed by members of the Board of Directors of the Investment Manager and the person in charge of the Custodian Bank. (5) The annual financial reports of Mutual Funds as referred to in paragraph (3) must be submitted to the Financial Services Authority by the Investment Manager no later than the end of the third month after the end date of the annual financial reports and be available to unit holders. (6) In the event that the Mutual Fund's annual financial report period end has no unit holders, the audit obligation as referred to in paragraph (3) and the submission of annual financial reports to the Financial Services Authority as referred to in paragraph (5) do not apply. (7) In the event that the Investment Manager submits a plan to liquidate the Mutual Fund before the end of the annual financial report period, the obligation to submit annual financial reports as referred to in paragraph (5) does not apply. (8) In the event that the deadline for submitting the annual financial reports of Mutual Funds as referred to

If paragraph (5) falls on a holiday, the report must be submitted no later than 1 (one) following working day.

Fifteenth Section
Minimum Managed Funds, Dissolution, and Liquidation of Collective Investment Contract Mutual Funds

Article 44
(1) Collective Investment Contract Mutual Funds whose Registration Statement has become effective must have managed funds of at least IDR 10,000,000,000.00 (ten billion rupiah) within a period of 90 (ninety) trading days after the Mutual Fund Registration Statement becomes effective. (2) For Protected Mutual Funds, Guaranteed Mutual Funds, and Index Mutual Funds that conduct a Limited Public Offering, the obligation to have managed funds of at least IDR 10,000,000,000.00 (ten billion rupiah) may be fulfilled within a period of 120 (one hundred twenty) trading days after the Mutual Fund Registration Statement becomes effective. (3) The Investment Manager must submit a report on the collection of managed funds for the Mutual Fund as referred to in paragraph (1) to the Financial Services Authority no later than 90 (ninety) trading days after the Mutual Fund Registration Statement becomes effective. (4) For Protected Mutual Funds, Guaranteed Mutual Funds, and Index Mutual Funds that conduct a Limited Public Offering, the obligation to submit the report on the collection of managed funds for the Mutual Fund to the Financial Services Authority must be carried out no later than 120 (one hundred twenty) trading days after the Mutual Fund Registration Statement becomes effective.

Article 45
Collective Investment Contract Mutual Funds must be dissolved if any of the following conditions occur:
a. within a period of 90 (ninety) trading days, the Mutual Fund whose Registration Statement has become effective has managed funds less than IDR 10,000,000,000.00 (ten billion rupiah); b. for Protected Mutual Funds, Guaranteed Mutual Funds, and Index Mutual Funds that conduct a Limited Public Offering, within a period of 120 (one hundred twenty) trading days after the Mutual Fund Registration Statement becomes effective, having managed funds less than IDR 10,000,000,000.00 (ten billion rupiah);
c. ordered by the Financial Services Authority in accordance with legislation in the Capital Market sector;
d. the total Net Asset Value of the Mutual Fund is less than IDR 10,000,000,000.00 (ten billion rupiah) for 120 (one hundred twenty) consecutive trading days; and/or e. the Investment Manager and Custodian Bank have agreed to dissolve the Mutual Fund.

Article 46
In the event that a Collective Investment Contract Mutual Fund is dissolved due to the conditions referred to in Article 45 letter a or letter b, the Investment Manager must:
a. submit a report on such conditions to the Financial Services Authority and announce the plan to dissolve the Mutual Fund to the Unit Holders in at least 1 (one) daily newspaper in Indonesian with national circulation, no later than 2 (two) trading days since the end of the period referred to in Article 45 letter a or letter b; b. instruct the Custodian Bank no later than 2 (two) trading days since the end of the period referred to in Article 45 letter a or letter b, to pay the liquidation proceeds that are the rights of the Unit Holders, with the provision that the calculation is done proportionally from the Net Asset Value at the time of dissolution but must not be smaller than the initial Net Asset Value (par price), and the funds are received by the Unit Holders no later than 7 (seven) trading days since the end of the period referred to in Article 45 letter a or letter b; and
c. dissolve the Mutual Fund within a period of no later than 10 (ten) trading days since the end of the period referred to in Article 45 letter a or letter b, and submit a report on the dissolution of the Mutual Fund to the Financial Services Authority no later than 10 (ten) trading days since the Mutual Fund was dissolved, accompanied by:

1. the deed of dissolution of the Mutual Fund from a Notary registered with the Financial Services Authority; and
2. the dissolution financial report of the Mutual Fund audited by an Accountant registered with the Financial Services Authority, if the Mutual Fund has had managed funds.

Article 47
In the event that a Collective Investment Contract Mutual Fund is dissolved due to the conditions referred to in Article 45 letter c, the Investment Manager must:
a. announce the plan to dissolve the Mutual Fund in at least 1 (one) daily newspaper in Indonesian with national circulation no later than 2 (two) trading days since ordered by the Financial Services Authority and on the same day notify in writing to the Custodian Bank to stop the calculation of the Net Asset Value of the Mutual Fund; b. instruct the Custodian Bank no later than 2 (two) trading days since ordered by the Financial Services Authority, to pay the liquidation proceeds that are the rights of the Unit Holders, with the provision that the calculation is done proportionally from the Net Asset Value at the time of dissolution and the funds are received by the Unit Holders no later than 7 (seven) trading days since the liquidation is completed; and
c. submit a report on the dissolution of the Mutual Fund to the Financial Services Authority no later than 60 (sixty) trading days since ordered by the Financial Services Authority to dissolve the Mutual Fund, with the following documents:

1. opinion from a Legal Consultant registered with the Financial Services Authority;
2. dissolution financial report of the Mutual Fund audited by an Accountant registered with the Financial Services Authority; and
3. deed of dissolution of the Mutual Fund from a Notary registered with the Financial Services Authority.

Article 48
In the event that a Collective Investment Contract Mutual Fund is dissolved due to the conditions referred to in Article 45 letter d, the Investment Manager must:
a. submit a report on such conditions to the Financial Services Authority accompanied by the latest financial conditions of the Mutual Fund and announce to the Unit Holders the plan to dissolve the Mutual Fund in at least 1 (one) daily newspaper in Indonesian with national circulation, within a period of no later than 2 (two) trading days since the end of the period referred to in Article 45 letter d and on the same day notify in writing to the Custodian Bank to stop the calculation of the Net Asset Value of the Mutual Fund; b. instruct the Custodian Bank no later than 2 (two) trading days since the end of the period referred to in Article 45 letter d, to pay the liquidation proceeds that are the rights of the Unit Holders, with the provision that the calculation is done proportionally from the Net Asset Value at the time the liquidation is completed and the funds are received by the Unit Holders no later than 7 (seven) trading days since the liquidation is completed; and
c. submit a report on the dissolution of the Mutual Fund to the Financial Services Authority no later than 60 (sixty) trading days since the end of the period referred to in Article 45 letter d, with the following documents:

1. opinion from a Legal Consultant registered with the Financial Services Authority;
2. dissolution financial report of the Mutual Fund audited by an Accountant registered with the Financial Services Authority; and
3. deed of dissolution of the Mutual Fund from a Notary registered with the Financial Services Authority.

Article 49
In the event that a Collective Investment Contract Mutual Fund is dissolved due to the conditions referred to in Article 45 letter e, the Investment Manager must:
a. submit the plan to dissolve the Mutual Fund to the Financial Services Authority within a period of no later than 2 (two) trading days since the agreement to dissolve the Mutual Fund by the Investment Manager and Custodian Bank occurred, attaching:

1. the agreement to dissolve the Mutual Fund between the Investment Manager and Custodian Bank accompanied by the reason for dissolution; and
2. the latest financial conditions;
   and on the same day announce the plan to dissolve the Mutual Fund to the Unit Holders in at least 1 (one) daily newspaper in Indonesian with national circulation and notify in writing to the Custodian Bank to stop the calculation of the Net Asset Value of the Mutual Fund; b. instruct the Custodian Bank no later than 2 (two) trading days since the agreement to dissolve the Mutual Fund occurred, to pay the liquidation proceeds that are the rights of the Unit Holders, with the provision that the calculation is done proportionally from the Net Asset Value at the time the liquidation is completed and the funds are received by the Unit Holders no later than 7 (seven) trading days since the liquidation is completed; and
   c. submit a report on the dissolution of the Mutual Fund to the Financial Services Authority no later than 60 (sixty) trading days since the dissolution of the Mutual Fund was agreed upon, accompanied by the following documents:
3. opinion from a Legal Consultant registered with the Financial Services Authority;
4. dissolution financial report of the Mutual Fund audited by an Accountant registered with the Financial Services Authority; and
5. deed of dissolution of the Mutual Fund from a Notary registered with the Financial Services Authority.

Article 50
Unit Holders cannot sell back after the announcement of the plan to dissolve the Mutual Fund has been made.

Article 51
The dissolution financial report of the Mutual Fund as referred to in Article 46 letter c number 2, Article 47 letter c number 2, Article 48 letter c number 2, and Article 49 letter c number 2 includes:
a. financial position report; b. comprehensive income statement; and
c. notes to the financial statements.

Article 52
(1) In the event that the Investment Manager no longer has a business license or the Custodian Bank no longer has an approval letter, the Financial Services Authority has the authority to:
a. appoint another Investment Manager to manage or another Custodian Bank to administer the Mutual Fund; or b. appoint one (1) party that still has a business license or approval letter to dissolve the Mutual Fund, if there is no replacement Investment Manager or Custodian Bank. (2) In the event that the party appointed to dissolve the Mutual Fund as referred to in paragraph (1) letter b is the Custodian Bank, the Custodian Bank may appoint another party to liquidate the Mutual Fund with notification to the Financial Services Authority. (3) The Investment Manager or Custodian Bank appointed to dissolve the Mutual Fund as referred to in paragraph (1) letter b must submit a report on the completion of the dissolution to the Financial Services Authority no later than 60 (sixty) trading days since appointed to dissolve the Mutual Fund, accompanied by the following documents:
a. opinion from a Legal Consultant registered with the Financial Services Authority; b. dissolution financial report of the Mutual Fund audited by an Accountant registered with the Financial Services Authority; and
c. deed of dissolution of the Mutual Fund from a Notary registered with the Financial Services Authority.

Article 53
In the event that there are still liquidation proceeds that have not been taken by the Unit Holders and/or there are remaining funds after the date of distribution of liquidation proceeds to the Unit Holders, then:
a. if the Custodian Bank has notified the Unit Holders of such funds 3 (three) times within a period of 10 (ten) trading days each and has announced it in a daily newspaper in Indonesian with national circulation, then such funds must be stored in a current account at the Custodian Bank as a Commercial Bank, in the name of the Custodian Bank for the interest of Unit Holders who have not taken the liquidation proceeds and/or for the interest of Unit Holders recorded on the date of dissolution, for a period of 30 (thirty) years; b. every cost arising from the storage of such funds is charged to the current account;
c. if within a period of 30 (thirty) years it is not taken by the Unit Holders, such funds must be handed over by the Custodian Bank to the Government of the Republic of Indonesia for the development of the Capital Market industry; and
d. in the Collective Investment Contract, a shorter period than 30 (thirty) years may be established with the provision that the shortest period is 3 (three) years.

Article 54
(1) In the event that the Mutual Fund is dissolved and liquidated by the Investment Manager, the costs of dissolution and liquidation of the Mutual Fund including the costs of Legal Consultants, Accountants, and Notaries as well as other costs to third parties become the burden of the Investment Manager. (2) In the event that the Custodian Bank or another party appointed by the Custodian Bank carries out the dissolution and liquidation of the Mutual Fund as referred to in Article 52 paragraph (2), the costs of dissolution and liquidation, including the costs of Legal Consultants, Accountants, and Notaries as well as other costs to third parties, may be charged to the Mutual Fund.

Sixteenth Section
Authority of the Financial Services Authority in Protecting the Interests of Unit Holders of Collective Investment Contract Mutual Funds

Article 55
To protect the interests of Unit Holders, the Financial Services Authority has the authority to:
a. transfer, freeze, and/or secure the assets of Collective Investment Contract Mutual Funds; b. appoint another Investment Manager to manage Collective Investment Contract Mutual Funds;
c. appoint another Custodian Bank to administer the assets of Collective Investment Contract Mutual Funds;
d. dissolve Collective Investment Contract Mutual Funds; and/or e. take other actions against Collective Investment Contract Mutual Funds.

CHAPTER III
GUIDELINES FOR COLLECTIVE INVESTMENT CONTRACTS OF COLLECTIVE INVESTMENT CONTRACT MUTUAL FUNDS

First Section
Form and Content of Collective Investment Contracts

Article 56
Investment Managers are prohibited from being affiliated with Custodian Banks.

Article 57
Collective Investment Contracts of Mutual Funds and their amendments must be made notarially.

Article 58
Collective Investment Contracts of Mutual Funds must contain the rights and responsibilities of the Investment Manager and Custodian Bank that bind the Unit Holders.

Article 59
Collective Investment Contracts of Mutual Funds must at least contain provisions regarding:
a. name and address of the Investment Manager; b. name and address of the Custodian Bank;
c. composition of diversification of Securities Portfolios in the money market and Capital Market;
d. allocation of costs borne by the Investment Manager, Mutual Fund, and Unit Holders; e. circumstances allowing the Investment Manager to reject the repurchase of Units; f. composition of Securities Portfolios of Collective Investment Contract Mutual Funds, investment limits of Mutual Funds, and prohibited actions for Investment Managers; g. obligations and responsibilities of the Investment Manager; h. obligations and responsibilities of the Custodian Bank;
i. replacement of Investment Manager or Custodian Bank in the Collective Investment Contract;
j. rights of Unit Holders; k. minimum initial sale limit of Units;
l. procedures for carrying out Unit Transactions;
m. procedures for carrying out Unit Transactions through electronic systems, if any; n. procedures for payment of Unit Transactions; o. procedures for payment of Unit Transactions through electronic payment systems, if any; p. procedures for calculating the Net Asset Value of Mutual Funds; q. procedures for resolving errors in calculating the Net Asset Value of Mutual Funds; r. submission of annual financial reports of Mutual Funds; s. force majeure circumstances beyond the control of the Investment Manager and/or Custodian Bank that cause the parties to be unable to perform their duties and obligations (emergency situations); t. dissolution of Mutual Funds; u. treatment of liquidation proceeds that have not been taken by Unit Holders and/or remaining funds;
v. the party responsible for the costs of dissolving the Mutual Fund; and
w. appointment of an alternative dispute resolution institution in the Capital Market sector, or other alternative dispute resolution institutions, as an institution to resolve disputes and civil disputes between the Investment Manager and Custodian Bank.

Article 60
The composition of Securities Portfolios of Collective Investment Contract Mutual Funds, investment limits of Mutual Funds, and prohibited actions for Investment Managers managing Mutual Funds as referred to in Article 59 letter f, must at least contain matters as regulated in Article 4, Article 5, and Article 6.

Article 61
The obligations and responsibilities of the Investment Manager as referred to in Article 59 letter g, must at least contain provisions regarding:
a. bookkeeping and reporting; b. responsibility of the Investment Manager for all losses arising from its errors;
c. prohibition of stopping the management of Mutual Funds before a replacement Investment Manager is appointed;
d. separation of Mutual Fund assets from the assets of the Investment Manager; e. procedures for Unit Transactions; f. calculation of the Fair Market Value of Securities in the portfolio every trading day and its submission to the Custodian Bank; g. appointment of a replacement Custodian Bank in the event that the Custodian Bank can no longer perform its functions as a Custodian Bank due to law, for example, the business license as a Commercial Bank is revoked or the approval as a Custodian Bank is cancelled; h. implementation of investments in accordance with the investment policy established in the Collective Investment Contract;
i. repurchase of Units on behalf of the Mutual Fund for the interest of the Mutual Fund account;
j. preparation and submission of annual financial reports to Unit Holders and the Financial Services Authority; and k. issuance of updates to the Prospectus accompanied by the latest annual financial report, which must be submitted to the Financial Services Authority by the Investment Manager at the end of the third month after the end of the annual financial report date.

Article 62
The obligations and responsibilities of the Custodian Bank as referred to in Article 59 letter h, must at least contain provisions regarding:
a. bookkeeping and reporting; b. responsibility of the Custodian Bank for all losses arising from its errors;
c. calculation of the Net Asset Value of Mutual Funds every trading day;
d. settlement of Securities transactions in accordance with instructions from the Investment Manager; e. payment of management fees and other costs charged to the Mutual Fund in accordance with the contract; f. payment to Unit Holders for every distribution of cash related to the contract, in the event that the Collective Investment Contract establishes a policy regarding periodic distribution of results to Unit Holders; g. storage and maintenance of separate records showing all changes in the number of Units owned by each Unit Holder, name, nationality, address, and other identities of the Unit Holders; h. certainty that Units are issued only upon receipt of funds from:

1. prospective Unit Holders;
2. parties determined at the time of account opening; and/or
3. parties determined by the Unit Holder after account opening;
   i. handling of Unit Transactions;
   j. separation of Mutual Fund assets from the assets of the Custodian Bank; k. provision of Collective Custody and Custodian services regarding Mutual Fund assets;
   l. preparation and submission of reports to the Investment Manager, Financial Services Authority, and Unit Holders; and
   m. written rejection of instructions from the Investment Manager with a copy to the Financial Services Authority if the instructions, upon receipt by the Custodian Bank, clearly violate legislation in the Capital Market field and/or the Collective Investment Contract.

Article 63
The rights of Unit Holders as referred to in Article 59 letter j, must at least contain provisions regarding:
a. right to receive proof of Unit ownership confirmation; b. right to obtain annual financial reports;
c. right to obtain information regarding daily Net Asset Value per Unit of the Mutual Fund;
d. right to sell back and transfer part or all of the Units; e. right to obtain reports as referred to in legislation in the Capital Market sector regulating Mutual Fund reports; f. right to receive investment result distributions, if any; and g. right to obtain a share of liquidation results.

Article 64
Provisions regarding the dissolution of Mutual Funds as referred to in Article 59 letter t, must at least contain:
a. reasons for the dissolution of Mutual Funds as referred to in Article 45; and b. actions taken in the framework of dissolving the Mutual Fund as referred to in Article 46, Article 47, Article 48, and/or Article 49.

Second Section
Amendments to Collective Investment Contracts and Amendments to Prospectuses of Collective Investment Contract Mutual Funds

Article 65
Investment Managers and/or Mutual Fund Sales Agents must ensure that prospective Unit Holders have received or had the opportunity to read the Mutual Fund Prospectus before or at the time of purchasing Mutual Fund Units.

Article 66
Investment Managers must update the Prospectus in the event of:
a. material changes related to the management of Mutual Funds; and/or b. annual financial reports of Mutual Funds.

Article 67
(1) Plans to amend Collective Investment Contracts and/or Mutual Fund Prospectuses must be submitted by the Investment Manager to the Financial Services Authority and announced to the public through 1 (one) daily newspaper in Indonesian with national circulation, no later than 15 (fifteen) working days before the intended amendment is carried out. (2) Plans to amend Collective Investment Contracts and/or Mutual Fund Prospectuses that do not yet have Unit Holders must be submitted to the Financial Services Authority no later than 7 (seven) working days before the intended amendment is carried out. (3) Amendments to Collective Investment Contracts must be submitted by the Investment Manager to the Financial Services Authority and announced to the public through 1 (one) daily newspaper in Indonesian with national circulation

national within 2 (two) working days after the change is made.
(4) The Prospectus change must be submitted by the Investment Manager to the Financial Services Authority and made available to the public and Unit holders within 2 (two) working days after the Prospectus update. (5) The obligation to announce the planned change to the Collective Investment Contract and/or the Mutual Fund Prospectus as referred to in paragraph (1) and the change to the Collective Investment Contract as referred to in paragraph (3) does not apply to Mutual Funds that do not yet have Unit holders. (6) The announcement through a newspaper as referred to in paragraph (1) and paragraph (3) may contain information that the details of the change to the Collective Investment Contract can be read or accessed through the Investment Manager's website.

CHAPTER IV
REGISTRATION STATEMENT IN THE FRAMEWORK OF PUBLIC OFFERING OF MUTUAL FUNDS IN THE FORM OF COLLECTIVE INVESTMENT CONTRACT

Article 68
In the context of issuing Mutual Funds in the form of Collective Investment Contracts, the Investment Manager is required to create, store, and administer documents as follows:
a. Collective Investment Contract made by a Notary registered with the Financial Services Authority; b. the final draft of the Mutual Fund Prospectus in the form of a Collective Investment Contract, stamped and signed by the Parties;

c. cooperation agreement with Mutual Fund Securities Selling Agents and/or parties with a wide business network (if any);
d. marketing and operational plan for the Mutual Fund; e. legal examination report and legal opinion from a Legal Consultant registered with the Financial Services Authority; f. Mutual Fund offering brochure; g. specifically for Protected Mutual Funds, simulation documents related to performance calculations or indication of results, including possible performance or results that may occur, considering among other things as follows:

1. assumptions;
2. maturity of each Security;
3. credit rating of Debt Securities serving as the basis for protection;
4. initial investment funds for each Security;
5. coupon rate for each Security;
6. estimated acquisition price for each Security;
7. costs;
8. estimated/indicated investment results;
9. repurchase or partial settlement, if any;
10. sale; and
11. settlement at maturity;
    h. contract with the Sponsor, for Mutual Funds in the form of Collective Investment Contracts whose Unit Shares are traded on the Stock Exchange, if the creation of Unit Shares for such Mutual Funds involves a Sponsor;
    i. agreement between the Investment Manager and the Participating Dealer, for Mutual Funds in the form of Collective Investment Contracts whose Unit Shares are traded on the Stock Exchange;

j. preliminary listing agreement between the Investment Manager and the Stock Exchange, if Unit Shares of Mutual Funds in the form of Collective Investment Contracts are traded on the Stock Exchange; k. Unit Share custody agreement in collective custody between the Investment Manager and the Depository and Clearing Institution, if Unit Shares of Mutual Funds in the form of Collective Investment Contracts are traded on the Stock Exchange; and
l. documents related to Derivative Securities, in the event that Mutual Funds will invest in Derivative Securities.

Article 69
The Registration Statement in the framework of the Public Offering of Mutual Funds in the form of Collective Investment Contracts is submitted by the Investment Manager to the Financial Services Authority in duplicate (2) copies, according to the format of the Registration Statement in the Framework of Public Offering of Mutual Funds in the Form of Collective Investment Contracts as stated in the Appendix, which is an integral part of this Financial Services Authority Regulation, accompanied by documents and/or information as follows:
a. Collective Investment Contract made by a Notary registered with the Financial Services Authority; b. the final draft of the Mutual Fund Prospectus in the form of a Collective Investment Contract, stamped and signed by the Parties; and
c. digital copies of all Registration Statement Product documents using digital media such as compact discs or others.

Article 70
(1) In order to process the application for the Registration Statement for the Public Offering of Mutual Funds in the form of Collective Investment Contracts as referred to in

Article 69, the Financial Services Authority examines the completeness of the application documents.
(2) In order to support the examination of the Registration Statement for the Public Offering of Mutual Funds in the form of Collective Investment Contracts as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. request the Investment Manager managing Mutual Funds in the form of Collective Investment Contracts and involved parties to present; and/or b. request changes and/or additional information regarding the completeness of the documents for the Registration Statement for the Public Offering of Mutual Funds in the form of Collective Investment Contracts.

Article 71
(1) The Registration Statement in the framework of the Public Offering of Mutual Funds in the form of Collective Investment Contracts becomes effective on the 45th (forty-fifth) day since the receipt of the complete Registration Statement or on an earlier date if declared effective by the Financial Services Authority. (2) The Investment Manager managing Mutual Funds in the form of Collective Investment Contracts is required to submit documents of changes and/or additional information related to the Registration Statement within 45 (forty-five) days from the date of the letter requesting documents of changes and/or additional information from the Financial Services Authority. (3) The Investment Manager managing Mutual Funds in the form of Collective Investment Contracts who does not complete the documents of changes and/or additional information within the time period as referred to in paragraph (2) is deemed to have cancelled the Registration Statement application already submitted to the Financial Services Authority. (4) The Investment Manager is required to submit the final printed Prospectus along with the digital format of such documents to the Financial Services Authority within 30 (thirty) working days after the effective date of the Registration Statement for Mutual Funds in the form of Collective Investment Contracts.

Article 72
In the event that the Registration Statement for Mutual Funds in the form of Collective Investment Contracts as referred to in Article 69 does not meet the requirements or meets the requirements, within 45 (forty-five) days since the receipt of the application, the Financial Services Authority provides a notification letter to the applicant stating that:
a. The Registration Statement does not yet meet the requirements; or b. The Registration Statement is declared effective by the Financial Services Authority.

Article 73
The Investment Manager is required to manage the Portfolio of Securities of Mutual Funds in the form of Collective Investment Contracts according to the investment policy stated in the Collective Investment Contract and/or Prospectus and to meet its investment policy within 150 (one hundred fifty) market days after the effectiveness of the Registration Statement for Mutual Funds in the form of Collective Investment Contracts.

Article 74
The Collective Investment Contract of Mutual Funds can be used for the issuance of subsequent Mutual Funds, as long as the parties bound by the Collective Investment Contract, the type of Mutual Funds, and the investment policy remain the same.

CHAPTER V
ELECTRONIC REGISTRATION, LICENSING, APPROVAL, AND REPORTING SYSTEM

Article 75
In the event that the Financial Services Authority has provided an electronic system related to applications for Registration Statements and/or submissions of reports for Mutual Funds in the form of Collective Investment Contracts, then applications for Registration Statements and/or submissions of reports for Mutual Funds in the form of Collective Investment Contracts can be submitted through the electronic system.

CHAPTER VI
SANCTION PROVISIONS

Article 76
(1) Without prejudice to criminal provisions in the field of Capital Markets, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties causing the violation, in the form of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and g. cancellation of registration.
(2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, e, f, or g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a.

(3) Administrative sanctions in the form of a fine as referred to in paragraph (1) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (1) letters c, d, e, f, or g.

Article 77
In addition to administrative sanctions as referred to in Article 76 paragraph (1), the Financial Services Authority may take certain actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 78
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 76 paragraph (1) and certain actions as referred to in Article 76 to the public.

CHAPTER VII
TRANSITIONAL PROVISIONS

Article 79
Mutual Funds in the form of Collective Investment Contracts whose Registration Statement has become effective before this Financial Services Authority Regulation takes effect, specifically regarding:
a. investment policy as referred to in Article 4, Article 5, and Article 6; b. sources of funds for purchasing Unit Shares as referred to in Article 17;
c. transfer of ownership of Unit Shares as referred to in Article 25;
d. submission of confirmation of ownership proof of Mutual Fund Unit Shares as referred to in Article 28;

e. submission of reports to each Unit holder of Mutual Funds as referred to in Article 29; and f. minimum managed funds as referred to in Article 44, is required to adjust to this Financial Services Authority Regulation within 12 (twelve) months from the effective date of this Financial Services Authority Regulation.

Article 80
Provisions regarding the name of Mutual Funds in the form of Collective Investment Contracts as referred to in Article 3 do not apply to Mutual Funds whose Registration Statement has become effective before this Financial Services Authority Regulation takes effect.

Article 81
Protected Mutual Funds, Guaranteed Mutual Funds, Index Mutual Funds, and Mutual Funds in the form of Collective Investment Contracts whose Unit Shares are traded on the Stock Exchange may not follow this Financial Services Authority Regulation as long as otherwise regulated in Financial Services Authority Regulation Number 48/POJK.04/2015 concerning Guidelines for Managing Protected Mutual Funds, Guaranteed Mutual Funds, and Index Mutual Funds and Financial Services Authority Regulation Number 49/POJK.04/2015 concerning Mutual Funds in the Form of Collective Investment Contracts Whose Unit Shares are Traded on the Stock Exchange.

CHAPTER VIII
CLOSING PROVISIONS

Article 82
Further provisions regarding the technical implementation of Mutual Funds in the form of Collective Investment Contracts are regulated in Financial Services Authority Circular Letters.

Article 83
Upon the effective date of this Financial Services Authority Regulation, the following are revoked and declared invalid:
a. Decision of the Chairman of Bapepam and LK Number: KEP552/BL/2010 dated December 30, 2010 concerning Guidelines for Managing Mutual Funds in the Form of Collective Investment Contracts, along with Regulation Number IV.B.1 which is its appendix; b. Decision of the Chairman of Bapepam and LK Number: KEP553/BL/2010 dated December 30, 2010 concerning Guidelines for Mutual Fund Contracts in the Form of Collective Investment Contracts, along with Regulation Number IV.B.2 which is its appendix; and
c. Decision of the Chairman of Bapepam and LK Number: KEP430/BL/2007 dated December 19, 2007 concerning Registration Statement in the Framework of Public Offering of Mutual Funds in the Form of Collective Investment Contracts, along with Regulation Number IX.C.5 which is its appendix,

Article 84
This Financial Services Authority Regulation takes effect upon being promulgated.

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

Issued in Jakarta on June 13, 2016
CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD

Promulgated in Jakarta on June 19, 2016
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H.LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 109 Copy in accordance with the original Director of Legal Affairs 1 Legal Department signed Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 23 /POJK.04/2016
CONCERNING
MUTUAL FUNDS IN THE FORM OF COLLECTIVE INVESTMENT CONTRACT

I. GENERAL
Mutual Funds are vehicles used to gather funds from public investors for subsequent investment in a Portfolio of Securities by an Investment Manager. As a vehicle used to gather funds from public investors, Mutual Funds play a strategic role as one of the investment alternatives for public investors. The significant development of Mutual Funds in Indonesia has caused demand for Mutual Fund products to increase, accompanied by the hope that Mutual Funds not only provide relatively high returns but also safe investment alternatives for investors. In relation to the above and in order to further enhance the growth of Mutual Funds in accordance with Capital Market needs, it is necessary to improve regulations in the field of Capital Markets governing Mutual Funds, specifically Regulation Number IV.B.1 appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institutions Number: Kep-552/BL/2010 dated December 30, 2010 concerning Guidelines for Managing Mutual Funds in the Form of Collective Investment Contracts, Regulation Number IV.B.2 appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institutions Number: Kep-553/BL/2010 dated December 30, 2010 concerning Guidelines for Mutual Fund Contracts in the Form of Collective Investment Contracts, and Regulation Number IX.C.5 appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institutions Number: Kep430/BL/2007 dated December 19, 2007 concerning Registration Statement in the Framework of Public Offering of Mutual Funds in the Form of Collective Investment Contracts. The improvement of these three Mutual Fund regulations includes new regulations regarding provisions for the transfer of Mutual Fund Unit Shares, sources of funds for Mutual Fund Unit Share transactions, and improvements to provisions regarding Mutual Fund Securities Portfolios, Mutual Fund investment limits, minimum managed funds for Mutual Funds, and the dissolution of Mutual Funds.

II. ARTICLE BY ARTICLE

Article 1
Clear enough.

Article 2
Clear enough.

Article 3
Paragraph (1)
Types of Mutual Funds include Money Market Mutual Funds, Fixed Income Mutual Funds, Equity Mutual Funds, Mixed Mutual Funds, Protected Mutual Funds, Guaranteed Mutual Funds, and Index Mutual Funds, or other types of Mutual Funds as regulated in capital market legislation. For example, the name of a Mutual Fund in the form of a Collective Investment Contract managed by Investment Manager XYZ with an investment policy in accordance with the Fixed Income Mutual Fund type regulations can be named “XYZ Mutual Fund Fixed Income Merdeka”. Another example, a Mutual Fund managed by the same Investment Manager but with an investment policy in accordance with Equity Mutual Fund regulations and with US Dollar denomination can be named “XYZ USD Equity Fund”.

Paragraph (2)
Letter a
Clear enough.
Letter b
Examples of names for Mutual Funds in the form of Collective Investment Contracts containing expressions that the Mutual Fund has benefits that are not necessarily true include “Certain Profit Mutual Fund” or “Anti-Loss Mutual Fund”. Letter c Examples of names for Mutual Funds in the form of Collective Investment Contracts containing expressions that the Investment Manager has certain advantages that are not necessarily true include “ABC Mutual Fund (Investment Manager Name) Best Equity”. Letter d Clear enough.

Article 4
Paragraph (1)
Letter a
Number 1
Securities include conventional Securities and Shariah Securities.
Number 2
Clear enough.
Number 3
Domestic money market instruments, both conventional and based on Shariah principles.
Letter b
Securities include conventional Securities and Shariah Securities.
What is meant by “mass media” is newspapers, magazines, television, radio, and other electronic media.
What is meant by “website” is a collection of web pages containing information or data that can be accessed through an internet network system.

Paragraph (2)
Clear enough.

Article 5
Paragraph (1)
Letter a
Securities offered through Public Offerings include Asset-Backed Securities and Unit Shares of Real Estate Investment Funds in the form of Collective Investment Contracts offered through Public Offerings. Letter b Clear enough. Letter c What is meant by “Securities Rating Company” in this letter is a Securities Rating Company that has obtained a business license from the Financial Services Authority. Examples of Debt Securities offered not through Public Offerings include medium term notes, promissory notes, and commercial papers issued conventionally. Examples of Shariah Fixed Income Securities offered not through Public Offerings include Municipal Bonds and commercial papers issued in accordance with Shariah Principles in the Capital Market. Letter d Asset-Backed Securities include Asset-Backed Securities from Asset-Backed Securities Collective Investment Contracts and Asset-Backed Securities in the form of Participation Certificates issued both conventionally and based on Shariah principles. Letter e Domestic money market securities include domestic money market securities issued both conventionally and based on Shariah principles. Examples of domestic money market securities with a maturity of not more than 1 (one) year include Bank Indonesia Certificates, money market securities, debt acknowledgment instruments, and deposit certificates. Letter f Unit Shares of Real Estate Investment Funds in the form of Collective Investment Contracts include Unit Shares of Real Estate Investment Funds in the form of Collective Investment Contracts issued both conventionally and based on Shariah principles. Letter g Clear enough. Letter h Clear enough. Paragraph (2) Letter a Clear enough. Letter b In practice, “investment grade rating” as referred to is also commonly called investment grade. Letter c Clear enough. Paragraph (3) Letter a Number 1 Clear enough. Number 2 In practice, “outside the stock exchange” as referred to is also commonly called over the counter. Letter a) In practice, “investment grade rating” as referred to is also commonly called investment grade. Letter b) Valuation conducted daily and fairly as referred to in these provisions can be seen through the existence of Fair Market Value calculated in accordance with regulations regarding Fair Market Value in Mutual Fund Portfolios. Letter c) In practice, “offsetting” as referred to is also commonly called offsetting. Letter b In practice, “derivative reference” as referred to is also commonly called derivative underlying. Letter c Potential losses greater than the initial exposure value at the time of purchase of Derivative Securities as referred to in this letter are potential obligations and/or payments that may arise from net short positions over Derivative Securities and their references.

Article 6
Paragraph (1)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
Securities in these provisions include all types of Securities, whether Equity Securities, Debt Securities, or money market instruments.
Letter e
Exposure value as referred to in number 1 letter this is calculated as the sum of the Fair Market Value of Derivative Securities plus the value of the reference (underlying) of Derivative Securities multiplied by the multiplier factor according to the table below:

Derivative Maturity
Derivatives of Equity Securities
Other Derivatives
Less than 1 (one) year
6% 10%
1 (one) to 5 (five) years
8% 12%
More than 5 (five years)
10% 15%

Global net exposure value as referred to in number 2 letter this is calculated as the value of Derivative Securities positions after subtracting offsetting and hedging positions, multiplied by the multiplier factor according to the type and type of underlying assets of the Derivative Securities according to the following rules:

1. Debt Securities Forward Contracts
   Number of contracts multiplied by contract value multiplied by Fair Market Value of Debt Securities equivalent to the lowest Underlying Asset.
2. Equity Securities Forward Contracts
   Number of contracts multiplied by contract value multiplied by Fair Market Value of Equity Securities.
3. Index Forward Contracts
   Number of contracts multiplied by contract value multiplied by Index level.
4. Debt Securities Option Contracts
   Number of contracts multiplied by contract price multiplied by Fair Market Value of Debt Securities multiplied by Delta.
5. Equity Securities Option Contracts
   Number of contracts multiplied by number of Equity Securities multiplied by Fair Market Value of Equity Securities multiplied by Delta.
6. Index Option Contracts
   Number of contracts multiplied by contract value multiplied by Index level multiplied by Delta.
7. Warrants and Rights to Purchase Securities First (HMETD)
   Number of Equity Securities/Debt Securities multiplied by Fair Market Value of Equity Securities/Debt Securities multiplied by Delta.
   What is meant by Delta is the magnitude of change in the value of Derivative Securities compared to the change in the value of the reference (underlying) of such Derivative Securities. Letter f Clear enough. Letter g What is meant by Counterparty for Asset-Backed Securities and/or Unit Shares of Real Estate Investment Funds is a collective investment contract or issuance of Asset-Backed Securities in the form of Participation Certificates. What is meant by Counterparty for Debt Securities and Shariah Fixed Income Securities is the issuer of such Securities. Letter h Clear enough. Letter i Clear enough. Letter j Clear enough. Letter k Clear enough. Letter l Clear enough. Letter m Clear enough. Letter n In practice, “sale of Securities not owned” as referred to is also commonly called short sale. Letter o Clear enough. Letter p What is meant by short-term loans is loans with a duration of no more than 1 (one) month. Letter q Clear enough. Letter r Number 1 In practice, “investment grade rating” as referred to is also commonly called investment grade. Number 2 In practice, “excess buy demand for offered Securities” as referred to is also commonly called over subscription. Letter s Clear enough. Letter t Clear enough. Letter u In practice, “contracts to sell or buy Securities with a promise to buy or sell back at a specified time and price” as referred to is also commonly called repurchase agreement transactions. Paragraph (2) Clear enough. Paragraph (3) Clear enough. Paragraph (4) Clear enough.

Article 7
Paragraph (1)
Notification letters as referred to in this paragraph can be submitted via electronic media.
Examples of changes in the composition of Mutual Funds in the form of Collective Investment Contracts Portfolios not caused by transaction actions taken by the Investment Manager are:

1. repurchase (redemption) and/or settlement;
2. dividend payments and other costs;
3. movement of Fair Market Value of Securities;
4. changes in Issuer paid-up capital; and/or
5. changes in the weight of a Security in the reference index of Mutual Funds.

Paragraph (2)
As an example:
If within a period of 20 (twenty) days of the market adjustment period for the composition of the Securities Portfolio of a Mutual Fund in the form of a Collective Investment Contract has expired, but the price of the Securities that must be sold to adjust the composition of said Securities Portfolio falls below the acquisition price, the Investment Manager may request approval from the Custodian Bank to extend the adjustment period for the composition of the Securities Portfolio of the Collective Investment Contract Mutual Fund until market conditions improve. Paragraph (3) Quite clear.
Article 8
Quite clear.
Article 9
Letter a
Quite clear.
Letter b
Examples of specific conditions set by the Financial Services Authority as referred to in this letter include force majeure conditions.
Article 10
Quite clear.
Article 11
Quite clear.
Article 12
Quite clear.
Article 13
Quite clear.

Article 14
Quite clear.
Article 15
Paragraph (1)
What is meant by an open-end Mutual Fund in the form of a Collective Investment Contract is a Mutual Fund that can offer and repurchase Participation Units from investors up to the number of Participation Units established in the Collective Investment Contract. Paragraph (2) At the time this Financial Services Authority Regulation comes into force, the prevailing legislation in the Capital Market sector regulating the Fair Market Value of Securities in the Portfolio of Mutual Funds is Regulation Number IV.C.2, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Institution Number: Kep-367/BL/2012, dated July 9, 2012 regarding the Fair Market Value of Securities in the Portfolio of Mutual Funds.
Article 16
Quite clear.
Article 17
Paragraph (1)
Quite clear.
Paragraph (2)
Letter a
Quite clear.
Letter b
Family members as referred to in this paragraph are spouses, children, parents, and siblings.
Letter c
Quite clear.

Letter d
Marketing activities in this context include promotion activities or loyalty programs for (prospective) Mutual Fund customers.
Paragraph (3)
Quite clear.
Article 18
Paragraph (1)
Quite clear.
Paragraph (2)
Regulations regarding Participation Unit Transactions for Mutual Funds in the form of a Collective Investment Contract whose Participation Units are traded on the Stock Exchange as referred to in this paragraph are intended for the sale of Participation Units conducted by Participating Dealers and/or Sponsors to the Investment Manager managing Mutual Funds in the form of a Collective Investment Contract whose Participation Units are traded on the Stock Exchange.
Article 19
Quite clear.
Article 20
Quite clear.
Article 21
Quite clear.
Article 22
Quite clear.
Article 23
Paragraph (1)
Letter a
Quite clear.

Letter b
Quite clear.
Letter c
What is meant by "emergency situation" in this letter is a force majeure state beyond the ability of the Parties as a result, inter alia, of war, natural events such as earthquakes or floods, strikes, sabotage or riots, a sharp and material drop in the price of Securities listed on the Stock Exchange occurring suddenly (crash), or failure of trading or transaction settlement systems. Letter d Quite clear. Paragraph (2) Quite clear. Paragraph (3) Quite clear. Paragraph (4) Written notification in this paragraph may be submitted electronically.
Article 24
In practice, "complete order for the purchase of Participation Units of a Mutual Fund in the form of a Collective Investment Contract" as referred to is also commonly called a complete application.
Article 25
Quite clear.
Article 26
Quite clear.
Article 27
Paragraph (1)
In practice, "complete order for the purchase of Participation Units of a Mutual Fund in the form of a Collective Investment Contract" as referred to is also commonly called a complete application. Paragraph (2) Quite clear.
Article 28
Paragraph (1)
The delivery of letters or written proof of ownership of Participation Units of a Mutual Fund in the form of a Collective Investment Contract directly to the holders of Participation Units includes through account statements showing ownership of Participation Units of said Mutual Fund at the Custodian Bank. Paragraph (2) Quite clear. Paragraph (3) The determination of the method of delivery of letters or written proof of ownership of Participation Units of Mutual Funds to holders of Mutual Fund Participation Units as referred to in this paragraph is done at the time of filling out the account opening form or at the time of updating the data of holders of Mutual Fund Participation Units. Examples of delivery of letters or written proof of confirmation through electronic media as referred to include, inter alia, electronic mail (e-mail).
Article 29
Paragraph (1)
At the time this Financial Services Authority Regulation comes into force, the prevailing legislation in the Capital Market sector regulating Mutual Fund reports is Regulation Number X.D.1, appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number: Kep-06/PM/2004 dated February 9, 2004 regarding Mutual Fund Reports. Paragraph (2) Quite clear.

Article 30
Letter a
Quite clear.
Letter b
Quite clear.
Letter c
What is meant by marketing costs includes commissions from Mutual Fund Securities Selling Agents.
Letter d
Quite clear.
Letter e
Quite clear.
Letter f
Quite clear.
Letter g
Quite clear.
Article 31
Paragraph (1)
Letter a
Quite clear.
Letter b
Quite clear.
Letter c
What is meant by insurance costs is the insurance costs of the Mutual Fund Securities Portfolio.
Letter d
Quite clear.
Letter e
Quite clear.
Letter f
Quite clear.
Letter g
Quite clear.
Paragraph (2)
Quite clear.

Article 32
Quite clear.
Article 33
Quite clear.
Article 34
Quite clear.
Article 35
Paragraph (1)
Letter a
Quite clear.
Letter b
Other parties having electronic systems with tested reliability in this letter include:

1. telecommunications service providers; and
2. electronic trading system service providers.
   Paragraph (2)
   Quite clear.
   Paragraph (3)
   Letter a
   Quite clear.
   Letter b
   Number 1
   Quite clear.
   Number 2
   Quite clear.
   Number 3
   In practice, the "remuneration" referred to is also commonly called a fee.
   Number 4
   Quite clear.
   Number 5
   Quite clear.

Paragraph (4)
Quite clear.
Paragraph (5)
Quite clear.
Paragraph (6)
Quite clear.
Article 36
Paragraph (1)
Electronic systems as referred to in this paragraph include, inter alia, websites.
Paragraph (2)
Quite clear.
Article 37
Paragraph (1)
Electronic payment systems as referred to in this paragraph include, inter alia, Automated Teller Machines (ATM) and internet banking.
Automatic debiting as referred to in this paragraph can be done periodically (installment).
Paragraph (2)
Examples of electronic payments as referred to in this paragraph include, inter alia, payments through electronic money.
Article 38
Quite clear.
Article 39
Quite clear.
Article 40
Quite clear.
Article 41
Quite clear.

Article 42
Quite clear.
Article 43
Quite clear.
Article 44
Quite clear.
Article 45
Quite clear.
Article 46
Quite clear.
Article 47
Quite clear.
Article 48
Quite clear.
Article 49
Quite clear.
Article 50
Quite clear.
Article 51
Letter a
Quite clear.
Letter b
Quite clear.
Letter c
Mutual Fund dissolution financial reports are based on 2 (two) financial reporting bases, namely financial reports with a going concern basis and financial reports with a liquidation basis. Financial reports with a going concern basis start from the beginning of the fiscal year until the date of stopping the calculation of the Mutual Fund's Net Asset Value. Financial reports with a liquidation basis start from the date of stopping the calculation of the Mutual Fund's Net Asset Value until the date of distributing the liquidation results of the Mutual Fund.
Article 52
Paragraph (1)
Quite clear.
Paragraph (2)
Other parties as referred to in this paragraph include:
a. Other Investment Managers; or b. Securities Trading Brokers.
Paragraph (3)
Quite clear.
Article 53
Quite clear.
Article 54
Quite clear.
Article 55
Quite clear.
Article 56
Quite clear.
Article 57
Quite clear.
Article 58
Quite clear.

Article 59
Letter a
Quite clear.
Letter b
Quite clear.
Letter c
Quite clear.
Letter d
Quite clear.
Letter e
Quite clear.
Letter f
Quite clear.
Letter g
Quite clear.
Letter h
Quite clear.
Letter i
Quite clear.
Letter j
Quite clear.
Letter k
In practice, "initial sale" as referred to is also commonly called initial subscription.
Letter l
Quite clear.
Letter m
Quite clear.
Letter n
Quite clear.
Letter o
Quite clear.
Letter p
Quite clear.
Letter q
Quite clear.

Letter r
Quite clear.
Letter s
Quite clear.
Letter t
Quite clear.
Letter u
Quite clear.
Letter v
Quite clear.
Letter w
Quite clear.
Article 60
Quite clear.
Article 61
Quite clear.
Article 62
Letter a
Bookkeeping as referred to in this letter includes all changes in the Securities Portfolio, number of Participation Units, expenses, management fees, dividends, interest income or other income in accordance with Financial Services Authority regulations. Letter b Quite clear. Letter c Quite clear. Letter d Quite clear. Letter e Quite clear. Letter f Quite clear.

Letter g
Quite clear.
Letter h
Quite clear.
Letter i
Quite clear.
Letter j
Quite clear.
Letter k
Quite clear.
Letter l
Quite clear.
Letter m
Quite clear.
Article 63
Letter a
Quite clear.
Letter b
Annual financial reports can be provided through the Investment Manager's website.
Letter c
Quite clear.
Letter d
Quite clear.
Letter e
Quite clear.
Letter f
Quite clear.
Letter g
Quite clear.
Article 64
Quite clear.

Article 65
Quite clear.
Article 66
Letter a
Material changes as referred to in this letter include:

1. changes in the Board of Directors and/or Board of Commissioners of the Investment Manager;
2. changes in the Mutual Fund's Investment Committee and/or Mutual Fund investment management team;
3. replacement of the Custodian Bank; and/or
4. replacement of the Investment Manager.
   Letter b
   Quite clear.
   Article 67
   Paragraph (1)
   Quite clear.
   Paragraph (2)
   Quite clear.
   Paragraph (3)
   Quite clear.
   Paragraph (4)
   Prospectus changes can be provided by the Investment Manager to the public and Participation Unit holders through mass media or electronic media such as the Investment Manager's website. Paragraph (5) Quite clear. Paragraph (6) Quite clear.
   Article 68
   Letter a
   Quite clear.
   Letter b
   Quite clear.

Letter c
Quite clear.
Letter d
Quite clear.
Letter e
In practice, "legal examination" as referred to is also commonly called a legal audit and "legal opinion" as referred to is also commonly called a legal opinion.
Letter f
Quite clear.
Letter g
Number 1
Quite clear.
Number 2
Quite clear.
Number 3
Quite clear.
Number 4
Quite clear.
Number 5
In practice, "coupon level" as referred to is also commonly called a coupon rate.
Number 6
Quite clear.
Number 7
Quite clear.
Number 8
Quite clear.
Number 9
Quite clear.
Number 10
Quite clear.
Number 11
Quite clear.
Letter h
Quite clear.

Letter i
Quite clear.
Letter j
Quite clear.
Letter k
Quite clear.
Letter l
Quite clear.
Article 69
Quite clear.
Article 70
Quite clear.
Article 71
Quite clear.
Article 72
Quite clear.
Article 73
Quite clear.
Article 74
Quite clear.
Article 75
Quite clear.
Article 76
Quite clear.
Article 77
Quite clear.

Article 78
Quite clear.
Article 79
Adjustment obligations in this Article may be followed by changes to the Collective Investment Contract of the Mutual Fund. If not followed by changes to the Collective Investment Contract of the Mutual Fund, the implementation of Mutual Fund management must be based on the provisions of this Financial Services Authority Regulation.
Article 80
Quite clear.
Article 81
Quite clear.
Article 82
Quite clear.
Article 83
Quite clear.
Article 84
Quite clear.
SUPPLEMENT TO THE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5886

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 23 /POJK.04/2016
REGARDING
MUTUAL FUNDS IN THE FORM OF COLLECTIVE INVESTMENT CONTRACTS

REGISTRATION STATEMENT IN THE FRAMEWORK OF PUBLIC OFFERING OF MUTUAL FUNDS IN THE FORM OF COLLECTIVE INVESTMENT CONTRACTS
Number : ..................... …….., ............. 20....
Attachment : .....................
Subject : Registration Statement in the Framework of Public Offering of Mutual Funds in the Form of Collective Investment Contract Mutual Fund.......(name of Mutual Fund) To The Executive Head of Capital Market Supervision Financial Services Authority in Jakarta
Hereby we submit a Registration Statement in the framework of the Public Offering of Mutual Funds in the form of Collective Investment Contracts totaling ................. Participation Units with a value per Participation Unit Rp/US Dollar/Euro ..........................
The Parties involved in this Registration Statement in the Framework of Public Offering of Mutual Funds in the form of Collective Investment Contract are:
I. Investment Manager

1. Name : ...............................................
2. Address : ...............................................
3. Number and date of establishment deed
   including amendments to the articles of association : ...............................................
4. Number and date of approval/
   consent/notification
   from the Minister of Law and Human Rights RI : ...............................................
5. Number and date of announcement
   in the Indonesian State Gazette : ...............................................
6. Number and date of business license
   from OJK : ...............................................
7. Tax Identification Number
   of the company : ...............................................
8. Board of Directors and Board of Commissioners Members:
   Name Nationality Address Position a. b. c. d. e.

II. Custodian Bank

1. Name : .......................................
2. Address : .......................................
3. Number and date of establishment deed
   including amendments to the articles of association : .......................................
4. Number and date of approval /
   consent/notification
   from the Minister of Law and Human Rights RI : .......................................
5. Number and date of announcement
   in the Indonesian State Gazette : .......................................
6. Number and date of certificate of
   approval from OJK : .......................................
7. Tax Identification Number
   of the company : .......................................
8. Board of Directors and Board of Commissioners Members:
   Name Nationality Address Position a. b. c. d. e.
9. Responsible Person:
   Name Nationality Address Position a. b.
   III. Notary
10. Name : .......................................
11. Address : .......................................
12. Tax Identification Number : .......................................
13. Number and date of certificate of
    registration from OJK : .......................................
    IV. Legal Consultant
14. Name : .......................................
15. Address : .......................................
16. Tax Identification Number : .......................................
17. Number and date of certificate of
    registration from OJK : .......................................
    V. List of attached documents:
18. Collective Investment Contract made by a Notary registered with the Financial Services Authority; and
19. The latest draft of the Mutual Fund Prospectus in the form of a Collective Investment Contract.

THE STATEMENTS OR INFORMATION CONTAINED IN THE REGISTRATION STATEMENT ARE TRUE AND THERE ARE NO MATERIAL FACTS OMITTED FROM THE REGISTRATION STATEMENT THAT ARE NECESSARY TO MAKE THE REGISTRATION STATEMENT NOT MISLEADING. PT ... AS THE INVESTMENT MANAGER HAS ENSURED THAT THE DOCUMENTS AND INFORMATION SUBMITTED IN THE FRAMEWORK OF THE REGISTRATION STATEMENT ARE IN ACCORDANCE WITH APPLICABLE LEGISLATION. INVESTMENT MANAGER, Stamp Duty
............................................
Full Name
Established in Jakarta on June 13, 2016
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signature
MULIAMAN D. HADAD
Copy matches the original
Legal Director 1
Legal Department
Sudarmaji
Copy matches the original
Legal Director 1
Legal Department signature
Yuliana