Financial Services Authority Regulation Number 23/POJK.04/2021 on Follow-up Supervision in the Capital Market Sector

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 23 /POJK.04/2021
CONCERNING
FOLLOW-UP SUPERVISION IN THE CAPITAL MARKET SECTOR BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that to support a healthy and accountable capital market industry climate, professional, integrity-based, and accountable capital market players are needed; b. that to carry out the duties of regulation, guidance, and supervision of capital market player activities, the Financial Services Authority has the authority to determine what needs to be done or not done by capital market players in carrying out their business activities;
c. that based on considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation on Follow-up Supervision in the Capital Market Sector;

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: FINANCIAL SERVICES AUTHORITY REGULATION ON FOLLOW-UP SUPERVISION IN THE CAPITAL MARKET SECTOR.

CHAPTER I
GENERAL PROVISIONS

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

1. Capital Market is activities related to public offerings and trading of securities, public companies related to the securities they issue, as well as institutions and professions related to securities.
2. Securities are negotiable instruments, namely debt acknowledgment instruments, commercial paper, shares, bonds, debt certificates, investment contract units, futures contracts on Securities, and every derivative of Securities.
3. Party is an individual, company, joint venture, association, or organized group.
4. Stock Exchange is a Party that organizes and provides systems and/or facilities to bring together buy and sell offers of Securities of other Parties with the aim of trading Securities among them.
5. Clearing and Guarantee Institution is a Party that organizes clearing and guarantee services for the settlement of exchange transactions.
6. Custody and Settlement Institution is a Party that organizes central custody activities for custodian banks, securities companies, and other Parties.
7. Stock Exchange Member is a securities broker intermediary that has obtained a business license from the Financial Services Authority and has the right to use the Stock Exchange's systems and/or facilities in accordance with Stock Exchange regulations.
8. Securities Company is a Party that conducts business activities as a securities underwriter, securities broker intermediary, and/or investment manager.
9. Securities Underwriter is a Party that makes a contract with the issuer to conduct a public offering for the benefit of the issuer with or without the obligation to purchase unsold Securities.
10. Securities Broker Intermediary is a Party that conducts business activities of buying and selling Securities for its own benefit or for other Parties.
11. Investment Manager is a Party whose business activity manages a portfolio of Securities for clients or manages a collective investment portfolio for a group of clients, except insurance companies, pension funds, and banks that conduct their own business activities based on statutory regulations.
12. Securities Broker Intermediary Agent is a Party that refers prospective clients to Securities Broker Intermediaries to become clients of the Securities Broker Intermediary with a commission based on a cooperation contract.
13. Mutual Fund Sales Agent is a Party that sells mutual fund Securities based on a cooperation contract with the Mutual Fund Management Investment Manager.
14. Investment Management Product is mutual funds, individual client securities portfolio management, real estate investment funds, infrastructure investment funds, asset-backed securities in the form of investment contracts, asset-backed securities in the form of participation certificates, collective investment contracts for people's housing savings, multi-asset investment funds in the form of collective investment contracts, and other investment products regulated based on statutory regulations in the Capital Market sector.
15. Investment Management Player is Investment Managers, custodian banks, Mutual Fund Sales Agents, sales outlets, investment advisors, issuers of asset-backed securities in the form of participation certificates, representatives of Investment Managers, representatives of Mutual Fund Sales Agents, and other investment management players regulated based on statutory regulations in the Capital Market sector.
16. Public Company is a corporation whose shares are owned by at least 300 (three hundred) shareholders and has paid-up capital of at least Rp3,000,000,000.00 (three billion rupiah) or a number of shareholders and paid-up capital determined by the Financial Services Authority.
17. Issuer is a Party that conducts a public offering.
18. Open Company is an Issuer that has conducted a public offering of equity-type Securities or is a Public Company.
19. Supervisory Action is an action that can be established as a follow-up to the results of Financial Services Authority supervision.
20. Specific Action Order is an order given by the Financial Services Authority as part of Supervisory Action.
21. Written Order is a written order as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.
22. Board of Directors is the corporation's organ authorized and fully responsible for managing the Corporation for the benefit of the corporation, in accordance with the purpose and objectives of the corporation and representing the corporation, both inside and outside of court, in accordance with the articles of association.
23. Board of Commissioners is the corporation's organ tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors.
24. Controlling Shareholder, hereinafter abbreviated as CSP, is a legal entity, individual, and/or business group that owns shares or shares equivalent to those of a financial services institution and has the ability to exercise control over the financial services institution.
25. Controlling Party of an Open Company, hereinafter referred to as Controller, is a Controller as referred to in Financial Services Authority regulations regarding the takeover of Open Companies.
26. Commercial Bank is a bank that conducts business activities on a conventional basis and/or based on Sharia principles, which in its activities provides services in payment circulation.
27. Custodian Bank is a Commercial Bank that has obtained approval from the Financial Services Authority to conduct business activities as a custodian.
28. Securities Administration Bureau is a Party that, based on a contract with the Issuer, implements the recording of Securities ownership and the distribution of rights related to Securities.
29. Trustee is a Party that represents the interests of holders of debt-type Securities and/or Sukuk.
30. Securities Rating Agency is an investment advisory company limited that conducts rating activities and provides ratings.
31. Debt and Sukuk Securities Broker Intermediary is a Party that conducts business activities of buying and selling debt-type and Sukuk Securities for its own benefit and/or its clients.
32. Alternative Market Organizer is a Party that organizes and provides or uses electronic systems to bring together transactions in Securities over debt-type and/or Sukuk Securities among service users continuously outside the Stock Exchange.
33. Securities Price Valuation Institution is a Party that has obtained a business license from the Financial Services Authority to conduct securities price valuation in order to determine fair market prices.
34. Investor Protection Fund Organizer is the organizer of a fund pool formed to protect investors from the loss of investor assets as referred to in Financial Services Authority regulations regarding investor protection funds.
35. Securities Financing Institution is a Party that conducts securities transaction financing business activities.
36. Public Accountant is an individual who has obtained a license to provide services as referred to in the Law concerning Public Accountants.
37. Appraiser is an individual who, with their expertise, conducts valuation activities in the Capital Market.
38. Legal Consultant is a legal expert who provides legal opinions to other Parties conducting activities in the Capital Market sector and is registered with the Financial Services Authority.
39. Notary is a public official authorized to make authentic deeds and has other authorities as referred to in the Law concerning the Notary Office, who is registered with the Financial Services Authority as a supporting profession in the Capital Market to make authentic deeds required by statutory regulations in the Capital Market sector.
40. Public Accounting Firm is a business entity established based on statutory regulations and obtains a business license as referred to in the Law concerning Public Accountants.
41. Capital Market Sharia Expert is an individual who has knowledge and experience in the field of Sharia, has a license to provide advice and/or supervise the implementation of Sharia principles in the Capital Market by Parties conducting Sharia activities in the Capital Market and/or provide statements of Sharia compliance for Sharia products or services in the Capital Market.
42. Crowdfunding Service Organizer is an Indonesian legal entity that provides, manages, and operates crowdfunding services.

Article 2
(1) Every Party conducting activities in the Capital Market is obliged to comply with the provisions in this Financial Services Authority Regulation.
(2) Parties as referred to in paragraph (1) include:
a. Securities Companies; b. Stock Exchanges;
c. Clearing and Guarantee Institutions;
d. Custody and Settlement Institutions; e. Securities Broker Intermediary marketing partners; f. Custodian Banks; g. Securities Administration Bureaus; h. Trustees;
i. Securities Rating Agencies;
j. Investment Management Products; k. Investment Management Players;
l. Public Companies;
m. Issuers; n. Debt and Sukuk Securities Broker Intermediaries; o. Alternative Market Organizers; p. Securities Price Valuation Institutions; q. Investor Protection Fund Organizers; r. Securities Financing Institutions; s. Public Accountants; t. Appraisers; u. Legal Consultants;
v. Notaries;
w. Public Accounting Firms;
x. Capital Market Sharia Experts;
y. Crowdfunding Service Organizers; z. Investment advisors; aa. Representatives of Investment Managers; bb. Representatives of Securities Underwriters;
cc. Representatives of Securities Broker Intermediaries;
dd. Representatives of Securities Broker Intermediary marketing; ee. Representatives of Limited Securities Broker Intermediary marketing; ff. Representatives of Mutual Fund Sales Agents; gg. Other Parties conducting activities in the Capital Market; and hh. Boards of Directors, Boards of Commissioners, managers, shareholders, CSPs, and/or Controllers of Parties as referred to in letters a through gg.

Article 3
Supervisory Actions are given to parties as referred to in Article 2 as a follow-up to supervision including but not limited to:
a. off-site supervision; b. technical examinations;
c. compliance examinations; and/or
d. other supervisory actions, in the context of direction, guidance, taking preventive steps, taking problem-solving steps, taking corrective actions, preventing further violations of compliance with regulations in the Capital Market sector, making improvements and/or adjustments in accordance with statutory regulations, and/or increasing compliance in the Capital Market sector.

Article 4
(1) In conducting activities in the Capital Market, Parties as referred to in Article 2 are obliged to carry out their activities based on the principles of:
a. integrity; b. good faith;
c. prudence through the application of risk management and good corporate governance;
d. professionalism; and e. information transparency.
(2) The Board of Directors, Board of Commissioners, managers, shareholders, CSPs, and Controllers of Parties as referred to in Article 2 are responsible for and committed to supporting the implementation of the principles as referred to in paragraph (1).

Article 5
In the event of violations of statutory regulations in the Capital Market sector and/or violations of the principles as referred to in Article 4 paragraph (1), the Financial Services Authority has the authority to:
a. issue Specific Action Orders; b. issue Written Orders; and/or
c. conduct law enforcement processes.

CHAPTER II
SPECIFIC ACTION ORDERS

Article 6
(1) In the event of indications of:
a. non-compliance with the implementation of principles as referred to in Article 4; and/or b. violations of statutory regulations, the Financial Services Authority has the authority to issue Specific Action Orders as part of Supervisory Action. (2) Specific Action Orders as referred to in paragraph (1) are issued:
a. before Written Orders; and/or b. before and/or simultaneously with law enforcement processes.
(3) The Financial Services Authority has the authority to establish Written Orders and/or law enforcement processes without being preceded by Specific Action Orders as referred to in paragraph (1) and paragraph (2) based on supervisory considerations.

Article 7
(1) Specific Action Orders are communicated by the Financial Services Authority in writing in the form of a letter to Parties as referred to in Article 2 subject to the Specific Action Order. (2) In the event of problems in delivering the Specific Action Order letter communicated by the Financial Services Authority to Parties as referred to in Article 2 subject to the Specific Action Order, the Financial Services Authority may announce the Specific Action Order through the Financial Services Authority's website. (3) Parties receiving Specific Action Orders are obliged to implement the Specific Action Orders established by the Financial Services Authority. (4) In the event that Parties subject to Specific Action Orders are Investment Management Products, the Parties obliged to implement the Specific Action Orders are the Parties managing and/or administering the Investment Management Products in question. (5) The forms of Specific Action Orders as referred to in paragraph (1) consist of:
a. orders to make adjustments, fulfill, or improve in accordance with statutory regulations; b. suspension or temporary cessation of opening office networks;
c. suspension of resignation of Parties receiving Specific Action Orders;
d. suspension or temporary cessation of conducting certain business activities; e. replacement of Boards of Directors, Boards of Commissioners, managers, shareholders, Controllers, and/or CSPs; f. strengthening capital through additional paid-up capital and/or working capital adjustments; g. prohibition on signing collective investment contracts and/or extending collective investment contracts and/or client fund management contracts for individual benefit; h. prohibition on conducting Securities transactions and/or Investment Management Products;
i. restriction on implementing marketing cooperation plans and/or conducting new activities;
j. suspension, prohibition, or restriction on corporate actions; k. restriction on business activities and/or specific activities;
l. conducting mergers or consolidations with other similar Parties;
m. placing statutory managers; n. adding employees in certain mandatory functions; o. doing what is necessary in resolving labor issues; p. prohibiting or stopping the opening of client Securities accounts; q. requesting the resolution of complaints with clients; r. holding or postponing general meetings of shareholders; s. requesting additional information and/or supporting documents; t. implementing information transparency; u. improving and re-announcing financial reports; and/or
v. taking other actions ordered by the Financial Services Authority.
(6) Specific Action Orders as referred to in paragraph (5) are based on the Financial Services Authority's assessment of the problems of Parties as referred to in Article 2 known based on supervision conducted by the Financial Services Authority. (7) In conducting the assessment as referred to in paragraph (6), the Financial Services Authority assesses problems based on:
a. the level of materiality of non-compliance and/or violations committed; b. the frequency of non-compliance and/or violations committed;
c. the impact on business continuity or the settlement of obligations that must be resolved;
d. the impact on the Capital Market industry and/or the financial services industry; and/or e. other matters as assessed by the Financial Services Authority. (8) Specific Action Orders as referred to in paragraph (3) are established by the Financial Services Authority for a specific period.

Article 8
(1) In fulfilling Specific Action Orders, Parties as referred to in Article 2 subject to Specific Action Orders are obliged to:
a. submit an action plan according to the problems faced; and b. submit a commitment to resolve the problems faced, from:

1. Parties subject to Specific Action Orders;
2. Boards of Directors, Boards of Commissioners, and/or managers; or
3. shareholders, CSPs, and/or Controllers, if related to issues that are their obligations,
   no later than 5 (five) working days after the date of the Specific Action Order letter.
   (2) Action plans and commitments as referred to in paragraph (1) are binding and must be implemented.
   (3) Parties as referred to in Article 2 subject to Specific Action Orders are obliged to submit a report on the realization of action plans no later than 5 (five) working days after all action plans as referred to in paragraph (1) letter a have been completed. (4) In the event that the period established in the Specific Action Order has expired and the fulfillment of Specific Action Orders is not met, Parties as referred to in Article 2 subject to Specific Action Orders must submit:
   a. a report on the progress of the realization of action plans; and b. a request for an extension of the resolution period, no later than 5 (five) working days after the period in the Specific Action Order is not met. (5) In reviewing the request as referred to in paragraph (4), the Financial Services Authority has the authority to:
   a. request Parties as referred to in Article 2 subject to Specific Action Orders to present; and/or b. request changes and/or additional information related to document completeness and/or information related to the progress of the realization of action plans as referred to in paragraph (4). (6) The Financial Services Authority has the authority to extend or not extend the implementation period of Specific Action Orders by considering:
   a. the condition of problems of Parties as referred to in Article 2 subject to Specific Action Orders; b. the implementation period of the realization of action plans;
   c. the impact on consumer protection;
   d. the impact of Specific Action Orders on the condition of the Capital Market industry and/or the financial services industry; and/or e. other considerations based on the Financial Services Authority's assessment. (7) The extension of the implementation period of Specific Action Orders by the Financial Services Authority as referred to in paragraph (6) can be given for a maximum of 2 (two) extensions. (8) In the event of conditions beyond the ability of Parties subject to Specific Action Orders to fulfill their obligations, the extension of the period as referred to in paragraph (7) can be given for more than 2 (two) times.

Article 9
(1) The Financial Services Authority has the authority to announce Specific Action Orders imposed on Parties as referred to in Article 2 subject to Specific Action Orders on the Financial Services Authority's website. (2) Specific Action Orders are announced by the Financial Services Authority in the event that:
a. Specific Action Orders have a significant impact on the operations or business activities of Parties subject to Specific Action Orders; b. Specific Action Orders impact consumer services conducted by Parties subject to Specific Action Orders; and/or
c. other conditions based on the Financial Services Authority's considerations.
(3) Announcements as referred to in paragraph (1) contain:
a. reasons and basis for consideration for the imposition of Specific Action Orders; and b. actions that must be taken by Parties as referred to in Article 2 subject to Specific Action Orders ordered by the Financial Services Authority.

Article 10
(1) Parties as referred to in Article 2 subject to Specific Action Orders in the form of restrictions on business activities and/or specific activities as referred to in Article 7 paragraph (5) letter k are obliged to:
a. stop business activities and/or specific activities subject to restrictions; and b. notify all office networks and/or marketing networks regarding business activities and/or specific activities subject to restrictions, if the Party subject to Specific Action Orders has office networks and/or marketing networks. (2) Notification to all office networks as referred to in paragraph (1) letter b must be done no later than 2 (two) working days after the date of the Specific Action Order in the form of restrictions on business activities and/or specific activities.

Article 11
(1) Parties as referred to in Article 2 subject to Specific Action Orders are considered to have implemented Specific Action Orders if, based on the Financial Services Authority's assessment, the realization of action plans has fulfilled the Specific Action Orders. (2) In the event that Parties as referred to in Article 2 subject to Specific Action Orders have implemented Specific Action Orders, the Financial Services Authority:
a. has the authority to communicate written notification in the form of a letter to the Parties concerned that the Parties have fulfilled the Specific Action Orders and/or the Financial Services Authority no longer has further responses regarding the implementation of Specific Action Orders; and/or b. may announce that Specific Action Orders have been implemented by Parties as referred to in Article 2 subject to Specific Action Orders on the Financial Services Authority's website.

Article 12
Further provisions regarding Specific Action Orders are established by the Financial Services Authority.

CHAPTER III
WRITTEN ORDERS
Article 13
In the event that the Party referred to in Article 2 subject to Specific Corrective Orders fails to comply with the Specific Corrective Orders, the Financial Services Authority is authorized to:
a. conduct examinations as referred to in Article 100 of Law Number 8 of 1995 concerning the Capital Market; and/or b. escalate the level of supervisory follow-up to Written Orders.

Article 14
The escalation of the supervisory follow-up level from Corrective Actions in the form of Specific Corrective Orders to Written Orders is carried out with consideration of:
a. the Party referred to in Article 2 subject to Specific Corrective Orders fails to implement the Specific Corrective Orders and/or fails to comply with statutory regulations; b. the Party referred to in Article 2 subject to Specific Corrective Orders fails to undertake improvement and/or resolution efforts for the problems faced;
c. the time limit and/or extension of the time limit for Corrective Actions in the form of Specific Corrective Orders is not fulfilled and there is no development in resolving the problems faced; and/or
d. other considerations deemed necessary in accordance with statutory regulations in the Capital Market sector.

Article 15
In the event that the Party referred to in Article 2 subject to Written Orders has implemented the Written Orders, evidenced by the improvement of conditions and/or fulfillment of the Written Orders, the Financial Services Authority:
a. is authorized to issue a written notification to the said Party that the Party has fulfilled the Written Orders and/or that the Financial Services Authority no longer has further responses regarding the implementation of the Written Orders; and/or b. may announce that the Written Orders have been implemented by the Party referred to in Article 2 subject to Written Orders.

Article 16
In the event that the Written Orders referred to in Article 13 letter b are not fulfilled, the Financial Services Authority is authorized to process further to the investigation stage in accordance with the provisions of the Law concerning the Financial Services Authority.

Article 17
Further provisions regarding Written Orders shall be determined by the Financial Services Authority.

CHAPTER IV
ADMINISTRATIVE SANCTIONS
Article 18
(1) Any Party who violates the provisions as referred to in Article 2 paragraph (1), Article 4, Article 7 paragraph (3), paragraph (4), Article 8 paragraph (1), paragraph (2), paragraph (3), and Article 10 shall be subject to administrative sanctions. (2) Sanctions as referred to in paragraph (1) shall also be imposed on parties who cause the violation as referred to in paragraph (1). (3) Sanctions as referred to in paragraph (1) and paragraph (2) shall be imposed by the Financial Services Authority. (4) Administrative sanctions as referred to in paragraph (1) consist of:
a. written warnings; b. fines, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business licenses; f. cancellation of approvals; g. cancellation of registrations; h. revocation of the effectiveness of Registration Statements; and
i. revocation of licenses for individuals.
(5) Administrative sanctions as referred to in paragraph (4) letters b, c, d, e, f, g, h, or i may be imposed with or without being preceded by the imposition of administrative sanctions in the form of written warnings as referred to in paragraph (4) letter a. (6) Administrative sanctions in the form of fines as referred to in paragraph (4) letter b may be imposed independently or concurrently with the imposition of administrative sanctions as referred to in paragraph (4) letters c, d, e, f, g, h, or i. (7) The procedures for imposing sanctions as referred to in paragraph (3) shall be carried out in accordance with statutory regulations.

Article 19
In addition to administrative sanctions as referred to in Article 18 paragraph (1), the Financial Services Authority may take specific actions against any party who violates the provisions of this Financial Services Authority Regulation.

Article 20
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 18 paragraph (1) and specific actions as referred to in Article 19 to the public.

CHAPTER V
CLOSING PROVISIONS
Article 21
This Financial Services Authority Regulation shall come into force upon the date of enactment.

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

To ensure that everyone knows, ordering the enactment of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia. Established in Jakarta on December 1, 2021 CHAIRMAN OF THE COMMISSIONERS BOARD FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed WIMBOH SANTOSO

Enacted in Jakarta on December 3, 2021
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2021 NUMBER 262

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 23/POJK.04/2021
CONCERNING
FOLLOW-UP SUPERVISION IN THE CAPITAL MARKET SECTOR

I. GENERAL
A healthy Capital Market industry is one of the requirements to support the creation of financial system stability, national economic growth, and the maintenance of public trust in the Capital Market industry. Therefore, every problem faced by Capital Market industry actors needs appropriate Corrective Actions and supervision and must be resolved quickly so as not to disrupt financial system stability and lower public trust levels. Corrective Actions and supervision aim to apply corrective steps that are quick and can be carried out by Capital Market industry actors so that they can protect investor interests, prevent the occurrence and/or avoid the spread of public losses due to problems and/or misconduct of Capital Market industry actors. Furthermore, Corrective Actions and supervision carried out also aim to maintain the continuity of business of Capital Market industry actors so that they can continue to fulfill their obligations to consumers. Regulation on follow-up supervision in the Capital Market sector is expected to provide more comprehensive guidance regarding supervisory actions for both the Financial Services Authority and Capital Market industry actors so that investor rights can be fulfilled immediately, and to minimize problems related to incomplete legal instruments.

An effective and efficient follow-up supervision mechanism will ultimately increase consumer protection and increase consumer trust in the Capital Market industry.

II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.

Article 2
Paragraph (1)
Examples of conducting activities in the Capital Market include:
a. legal entities and individuals who have licenses, approvals, registration certificates, recognitions, and/or statements of effectiveness from the Financial Services Authority based on statutory regulations in the Capital Market sector; b. legal entities and individuals who do not have licenses, approvals, registration certificates, and/or statements of effectiveness from the Financial Services Authority based on statutory regulations in the Capital Market sector but conduct activities in the Capital Market. As examples:

1. New Controllers of Public Companies who are required to conduct mandatory tender offers as referred to in Financial Services Authority Regulations regarding the takeover of Public Companies;
2. members of the Board of Directors, members of the Board of Commissioners, and any Party who owns shares, directly or indirectly, of at least 5% (five percent) of paid-up capital in Public Companies who are required to submit ownership reports and every change in ownership of shares of Public Companies as referred to in Financial Services Authority Regulations regarding ownership reports and every change in ownership of shares of Public Companies; and
3. issuers who issue Securities through crowdfunding services as referred to in Financial Services Authority Regulations regarding the offering of Securities through crowdfunding services based on information technology.

Paragraph (2)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Sufficiently clear.
Letter d
Sufficiently clear.
Letter e
Sufficiently clear.
Letter f
Sufficiently clear.
Letter g
Sufficiently clear.
Letter h
Sufficiently clear.
Letter i
Sufficiently clear.
Letter j
Sufficiently clear.
Letter k
Sufficiently clear.
Letter l
Sufficiently clear.
Letter m
Sufficiently clear.
Letter n
Sufficiently clear.
Letter o
Sufficiently clear.
Letter p
Sufficiently clear.
Letter q
Sufficiently clear.
Letter r
Sufficiently clear.
Letter s
Sufficiently clear.
Letter t
Sufficiently clear.
Letter u
Sufficiently clear.
Letter v
Sufficiently clear.
Letter w
Sufficiently clear.
Letter x
Sufficiently clear.
Letter y
Sufficiently clear.
Letter z
Sufficiently clear.
Letter aa
Sufficiently clear.
Letter bb
Sufficiently clear.
Letter cc
Sufficiently clear.
Letter dd
Sufficiently clear.
Letter ee
Sufficiently clear.
Letter ff
Sufficiently clear.
Letter gg
Other parties conducting activities in the Capital Market other than as referred to in letters a through ff include:

1. legal entities and individuals who have licenses, approvals, registration certificates, recognitions, and/or statements of effectiveness from the Financial Services Authority based on statutory regulations in the Capital Market sector; or
2. legal entities and individuals who do not have licenses, approvals, registration certificates, and/or statements of effectiveness from the Financial Services Authority based on statutory regulations in the Capital Market sector but conduct activities in the Capital Market.
   Letter hh
   Sufficiently clear.

Article 3
Sufficiently clear.

Article 4
Paragraph (1)
Letter a
What is meant by the principle of "integrity" is Parties conducting activities in the Capital Market in conducting their business with:

1. good faith and full responsibility;
2. upholding honesty; and
3. commitment to comply with:
   a) written agreements, in the event there are written agreements; and b) statutory regulations.
   Letter b
   What is meant by the application of the principle of "good faith" is Parties conducting activities in the Capital Market in conducting their business always prioritizing good behavior. Examples of the application of the principle of "good faith" include:
4. Parties conducting activities in the Capital Market do not engage in misleading information disclosure;
5. Parties conducting activities in the Capital Market act as best as possible to do their best for the interests of investors; and
6. Parties conducting activities in the Capital Market do not engage in misconduct in Securities transactions.
   Letter c
   What is meant by the principle of "prudence through the application of risk management and good corporate governance" is Parties conducting activities in the Capital Market in conducting their business always having adequate risk management and the application of good corporate governance as regulated in statutory regulations. Letter d What is meant by the principle of "professionalism" is Parties conducting activities in the Capital Market in conducting their business professionally. Examples of professionalism in these provisions include:
7. Parties conducting activities in the Capital Market always comply with statutory regulations; and
8. Parties conducting activities in the Capital Market comply with professional codes of ethics and/or regulations governing behavior.
   Letter e
   What is meant by the principle of "information disclosure" is Parties conducting activities in the Capital Market in conducting their business always providing and/or submitting information that is true, not misleading, and not contrary to statutory regulations.

Paragraph (2)
What is meant by "managers" includes:

1. for legal entities other than Limited Liability Companies, parties equivalent to the Board of Directors and Board of Commissioners in Limited Liability Companies;
2. for Custodian Banks, the person in charge;
3. for Trustes, the person in charge; and
4. for Public Accountant Offices, the partner in charge.

Article 5
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
The authority to conduct law enforcement processes in accordance with statutory regulations includes laws concerning the Capital Market and laws concerning the Financial Services Authority.

Article 6
Paragraph (1)
What is meant by "statutory regulations" is Law Number 8 of 1995 concerning the Capital Market and Law Number 21 of 2011 concerning the Financial Services Authority along with its implementing regulations. Corrective Actions and supervision aim to provide guidance, mentoring, take preventive steps, and apply corrective steps that are quick and can be carried out by Capital Market industry actors so that they can protect investor interests, prevent the occurrence, and/or avoid the spread of public losses due to problems and/or misconduct of Capital Market industry actors. Furthermore, Corrective Actions and supervision carried out also aim to maintain the continuity of business of Capital Market industry actors so that they can continue to fulfill their obligations to consumers. Corrective Actions are part of the results of off-site supervision implementation, technical examinations, and/or compliance examinations conducted by Financial Services Authority supervisors. The form of Corrective Actions carried out by the Financial Services Authority is adjusted to the business characteristics of each Party conducting activities in the Capital Market. Paragraph (2) Sufficiently clear. Paragraph (3) Sufficiently clear.

Article 7
Paragraph (1)
The forms of letters include those signed directly, commonly known as wet signatures, or scanned copies and documents signed electronically.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.
Paragraph (6)
Sufficiently clear.
Paragraph (7)
Sufficiently clear.
Paragraph (8)
Sufficiently clear.

Article 8
Paragraph (1)
Letter a
What is meant by "action plan" in these provisions is known as the term action plan to resolve Specific Corrective Orders from the Financial Services Authority. Letter b Sufficiently clear. Paragraph (2) Sufficiently clear. Paragraph (3) Sufficiently clear. Paragraph (4) Sufficiently clear. Paragraph (5) Sufficiently clear. Paragraph (6) Letter a Sufficiently clear. Letter b Sufficiently clear. Letter c Sufficiently clear. Letter d Sufficiently clear. Letter e Other considerations based on the Financial Services Authority's assessment include, among others, the occurrence of distress conditions. Paragraph (7) Sufficiently clear. Paragraph (8) Examples of conditions beyond the Party's ability subject to Specific Corrective Orders include, for example, stocks that are the underlying portfolio of mutual fund Securities are suspended from trading at the Stock Exchange or the Stock Exchange is closed.

Article 9
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Other examples based on Financial Services Authority considerations include Specific Corrective Orders that have a broad impact on society.
Paragraph (3)
Sufficiently clear.

Article 10
Sufficiently clear.

Article 11
Sufficiently clear.

Article 12
Sufficiently clear.

Article 13
Sufficiently clear.

Article 14
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Sufficiently clear.
Letter d
What is meant by "other considerations deemed necessary" are considerations that among others comply with provisions as referred to in Article 7 paragraph (7) of this Financial Services Authority Regulation.

Article 15
Sufficiently clear.

Article 16
Sufficiently clear.

Article 17
Sufficiently clear.

Article 18
Sufficiently clear.

Article 19
What is meant by "specific actions" includes, among others, compensation payments to specific Parties.

Article 20
Sufficiently clear.

Article 21
Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6741