Financial Services Authority Regulation Number 24 of 2023 Concerning Business Licensing and Institutional Organization of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Adjusting Companies

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 24 OF 2023
CONCERNING
BUSINESS LICENSING AND INSTITUTIONAL ORGANIZATION OF INSURANCE BROKERAGE COMPANIES, REINSURANCE BROKERAGE COMPANIES, AND INSURANCE LOSS ADJUSTING COMPANIES BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: that in order to implement Article 8 paragraph (4), Article 10 paragraph (4), Article 17 paragraph (3), Article 27 paragraph (8), Article 40 paragraph (6), Article 69 paragraph (2), and Article 88 paragraph (2) of Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector and the provisions of Article 27 paragraph (8) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, as well as to support the strengthening of institutions in the insurance brokerage, reinsurance brokerage, and insurance loss adjusting industry as regulated in Financial Services Authority Regulation Number 68/POJK.05/2016 concerning Business Licensing and Institutional Organization of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Adjusting Companies, it is necessary to establish a Financial Services Authority Regulation concerning Business Licensing and Institutional Organization of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Adjusting Companies; Recalling: 1. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
2. Law Number 40 of 2014 concerning Insurance (State Gazette of the Republic of Indonesia Year 2014 Number 337, Supplement to the State Gazette of the Republic of Indonesia Number 5618) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
3. Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
4. Government Regulation Number 14 of 2018 concerning Foreign Ownership in Insurance Companies (State Gazette of the Republic of Indonesia Year 2018 Number 66, Supplement to the State Gazette of the Republic of Indonesia Number 6200) as amended by Government Regulation Number 3 of 2020 (State Gazette of the Republic of Indonesia Year 2020 Number 7, Supplement to the State Gazette of the Republic of Indonesia Number 6456);
DECIDING:
Decree: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING BUSINESS LICENSING AND INSTITUTIONAL ORGANIZATION OF INSURANCE BROKERAGE COMPANIES, REINSURANCE BROKERAGE COMPANIES, AND INSURANCE LOSS ADJUSTING COMPANIES.

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

1. Insurance Brokerage Business is a consulting and/or intermediary service business in closing insurance, closing sharia insurance, guaranteeing, sharia guaranteeing, and handling claim settlements, acting on behalf of and for the policyholder, insured, participant, or beneficiary.
2. Reinsurance Brokerage Business is a consulting and/or intermediary service business in placing reinsurance or placing sharia reinsurance and handling claim settlements, acting on behalf of and for insurance companies, sharia insurance companies, guarantee companies, sharia guarantee companies, reinsurance companies, or sharia reinsurance companies that place reinsurance or sharia reinsurance.
3. Insurance Loss Adjusting Business is a claim assessment service and/or consulting service for insurance objects.
4. Company means an insurance brokerage company, a reinsurance brokerage company, and an insurance loss adjusting company.
5. Insurance Brokerage Company is a company that conducts Insurance Brokerage Business.
6. Reinsurance Brokerage Company is a company that conducts Reinsurance Brokerage Business.
7. Insurance Loss Adjusting Company is a company that conducts Insurance Loss Adjusting Business.
8. Insurance Broker is an individual who works at an Insurance Brokerage Company and meets the requirements to give recommendations or represent policyholders, insured persons, or participants in closing insurance or sharia insurance and/or claim settlements.
9. Reinsurance Broker is an individual who works at a Reinsurance Brokerage Company and meets the requirements to give recommendations or represent insurance companies, sharia insurance companies, guarantee companies, sharia guarantee companies, reinsurance companies, or sharia reinsurance companies in closing reinsurance or sharia reinsurance and/or claim settlements.
10. Party means an individual or business entity, whether in the form of a legal entity or not.
11. Paid-up Capital is paid-up capital for Companies in the form of limited liability companies or principal savings and mandatory savings for Companies in the form of cooperative legal entities.
12. Equity is equity based on applicable financial accounting standards in Indonesia.
13. Board of Directors is the Company organ authorized and fully responsible for managing the Company for the benefit of the Company, in accordance with the Company's purpose and objectives, and representing the Company, both inside and outside of court, in accordance with the Articles of Association, for Companies in the form of limited liability companies or equivalent to the Board of Directors for Companies in the form of cooperative legal entities.
14. Board of Commissioners is the Company organ tasked with conducting general and/or specific supervision in accordance with the Articles of Association and giving advice to the Board of Directors for Companies in the form of limited liability companies, or equivalent to the Board of Directors for Companies in the form of cooperative legal entities.
15. Controller is a Party that directly or indirectly has the ability to influence actions and/or determine the Board of Directors, Board of Commissioners, or equivalents thereof.
16. Controlling Shareholder hereinafter abbreviated as CSP is a Party that directly owns shares or capital of the Company amounting to 25% (twenty-five percent) or more of the issued shares with voting rights, or a Party that directly owns shares or capital of the Company less than 25% (twenty-five percent) of the issued shares with voting rights but can be proven to have exercised control.
17. General Meeting of Shareholders hereinafter abbreviated as GMS is the Company organ that has authority not given to the Board of Directors or Board of Commissioners within limits determined in legislation concerning limited liability companies and/or the Articles of Association, for Companies in the form of limited liability companies or equivalent to the GMS for Companies in the form of cooperative legal entities.
18. Professional Certification Agency hereinafter abbreviated as PCA is an agency that conducts professional certification activities that have met the requirements and obtained a license from an authority or agency granted the authority to conduct work competency certification in accordance with applicable legislation.
19. Expert is an individual who has specific qualifications and/or expertise who is appointed and works full-time as an Expert at one Company where they work.
20. Association is an association of Companies that has obtained written approval from the Financial Services Authority in accordance with the activities or business types of each Company.
21. Foreign Legal Entity is an entity registered or listed with the authority of another country as a legal entity.
22. Foreign Ownership is the ownership of foreign citizens and/or Foreign Legal Entities in the Company.
23. Merger is a legal act performed by 1 (one) or more Companies to merge with an existing Company of a similar business type, resulting in the assets, liabilities, and Equity of the merging Company transferring by law to the Company receiving the merger and subsequently the legal entity status of the merging Company ends by law.
24. Consolidation is a legal act performed by 2 (two) or more Companies of a similar business type to consolidate by establishing 1 (one) new Company that legally acquires the assets, liabilities, and Equity of the consolidating Companies and the legal entity status of the consolidating Companies ends by law.
25. Takeover is a legal act performed by a legal entity or individual to take over shares of a Company resulting in the transfer of control of the Company.

CHAPTER II
LEGAL ENTITY FORM, OWNERSHIP, COMPANY NAME, AND CAPITAL
Section One
Legal Entity Form
Article 2
The legal entity form of the Company consists of:
a. limited liability company; or b. cooperative.

Section Two
Ownership
Article 3
(1) The Company may only be owned by:
a. Indonesian citizens and/or Indonesian legal entities that are directly or indirectly fully owned by Indonesian citizens; or b. Indonesian citizens and/or Indonesian legal entities as referred to in letter a, together with foreign citizens or Foreign Legal Entities which must be Companies having a similar business or a parent company whose one subsidiary operates in a similar insurance business. (2) Foreign Ownership of the Company by foreign citizens or Foreign Legal Entities as referred to in paragraph (1) letter b is implemented in accordance with provisions regulated in Government Regulations concerning foreign ownership in insurance companies and provisions in this Financial Services Authority Regulation.

Article 4
(1) Foreign Ownership of the Company by foreign citizens as referred to in Article 3 paragraph (1) letter b can only be done through transactions on the securities exchange.
(2) Foreign Ownership of the Company by Foreign Legal Entities as referred to in Article 3 paragraph (1) letter b is done through:
a. direct investment in the Company; b. transactions on the securities exchange for the Company; and/or
c. investment in an Indonesian legal entity that owns the Company through:

1. direct investment; or
2. transactions on the securities exchange.

Article 5
(1) Foreign Ownership of the Company by Foreign Legal Entities through direct investment in the Company as referred to in Article 4 paragraph (2) letter a and direct investment in an Indonesian legal entity that owns the Company as referred to in Article 4 paragraph (2) letter c number 1) must meet the criteria:
a. being a company having a similar business or being a parent company whose one subsidiary operates in a similar insurance business; and b. having Equity of at least 5 (five) times the amount of direct investment in the Company at the time of establishment and change of ownership of the Company. (2) The obligation to meet the criteria for Foreign Legal Entities as referred to in paragraph (1) applies to Foreign Ownership through direct investment in an Indonesian legal entity that owns the Company as referred to in Article 4 paragraph (2) letter c number 1) with the requirement of having control over the Company directly or indirectly with a share ownership percentage greater than or equal to 25% (twenty-five percent). (3) The obligation to meet the criteria for Foreign Legal Entities that are shareholders of the Company as referred to in paragraph (1) does not apply to share ownership of the Company by Foreign Legal Entities through:
a. transactions on the securities exchange as referred to in Article 4 paragraph (2) letter b; and b. transactions on the securities exchange for an Indonesian legal entity that owns the Company as referred to in Article 4 paragraph (2) letter c number 2).

Article 6
(1) The Company is required to identify and report:
a. Foreign Ownership of the Company by Foreign Legal Entities as referred to in Article 4 paragraph (2); b. Foreign Ownership of the Company by foreign citizens indirectly; and
c. fulfillment of criteria for Foreign Legal Entities as referred to in Article 5 paragraph (1), to the Financial Services Authority.
(2) The calculation of share ownership by Foreign Legal Entities as referred to in paragraph (1) letter a is done:
a. directly, based on the calculation of the cumulative percentage of share ownership by all Foreign Legal Entities recorded in the Company's latest shareholder list; and b. indirectly:

1. calculation of Foreign Ownership from shareholders of the Company in the form of an Indonesian closed corporation based on the calculation of the cumulative percentage of share ownership by all Foreign Legal Entities up to the last shareholder (ultimate shareholders); and/or
2. calculation of Foreign Ownership from shareholders of the Company in the form of an Indonesian open corporation based on the calculation of the cumulative percentage of share ownership by all Foreign Legal Entities listed in the ownership structure present on the securities exchange as regulated in applicable legislation in the capital market field.

Article 7
The Company is required to report the results of Foreign Ownership identification and fulfillment of criteria for Foreign Legal Entities as referred to in Article 6:
a. periodically, reported as part of the Company's periodic report in accordance with provisions concerning the form and structure of the Company's periodic report; and b. when the Company carries out corporate actions that cause changes in ownership.

Article 8
(1) Shareholders of the Company in the form of an Indonesian legal entity must have Equity of at least 1 (one) time the amount of direct investment.
(2) The provisions on the amount of direct investment as referred to in paragraph (1) do not apply to shareholders of the Company that are financial service institutions under the supervision of the Financial Services Authority. (3) For financial service institutions under the supervision of the Financial Services Authority, the amount of direct investment in the Company must be done in accordance with applicable legislation governing investment and/or investment. (4) The amount of direct investment as referred to in paragraph (1) must be fulfilled when the respective legal entity:
a. deposits capital at the time of Company establishment; b. makes direct investment as a new shareholder of the Company after the Company obtains a business license; and/or
c. increases investment in the Company originating from cash deposits and conversion/transfer of loans.

Article 9
(1) CSPs in the form of legal entities must have and demonstrate good financial performance for at least 2 (two) years before making capital investment in the Company.
(2) The provisions as referred to in paragraph (1) are exempted for:
a. CSPs that are legal entities established for the longest 2 (two) years and are the result of corporate actions in the form of merger, consolidation, or separation; b. CSPs that are Indonesian legal entities established with capital investment from the central government and/or local government; and/or
c. CSPs that will make capital investment in the Company in the framework of fulfilling the Company's minimum Equity.

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

Section Three
Company Name
Article 11
(1) The Company must use a Company name that starts with the legal entity form and contains the word:
a. Insurance Broker, insurance broker, or a word characterizing Insurance Brokerage activities for Insurance Brokerage Companies; b. Reinsurance Broker, reinsurance broker, or a word characterizing Reinsurance Brokerage activities for Reinsurance Brokerage Companies; or
c. Insurance Loss Adjuster, adjuster, or a word characterizing Insurance Loss Adjusting activities for Insurance Loss Adjusting Companies.
(2) The use of the Company name as referred to in paragraph (1) for Companies in the form of limited liability companies is implemented in accordance with applicable legislation concerning limited liability companies. (3) The use of the Company name as referred to in paragraph (1) for Companies in the form of cooperative legal entities is implemented in accordance with applicable legislation concerning cooperatives and the ratification of cooperatives. (4) The use of the Company name as referred to in paragraph (1) in business operations must refer to the Company name, the Company's legal entity form, and the business activities listed in the Company's Articles of Association that have been ratified by the competent authority. (5) The Company name must be clearly stated on the office building, advertisements, Company letterheads, and/or other Company documents. (6) The Financial Services Authority is authorized to give written instructions to the Company to change the Company name if the Company name does not comply with the provisions as referred to in paragraph (1) through paragraph (4). (7) The Company is required to fulfill the written instructions of the Financial Services Authority as referred to in paragraph (6).

Section Four
Paid-up Capital at Establishment
Article 12
(1) Insurance Brokerage Companies must have Paid-up Capital at establishment of at least IDR 5,000,000,000.00 (five billion rupiah).
(2) Reinsurance Brokerage Companies must have Paid-up Capital at establishment of at least IDR 5,000,000,000.00 (five billion rupiah).
(3) Insurance Loss Adjusting Companies must have Paid-up Capital at establishment of at least IDR 1,500,000,000.00 (one billion five hundred million rupiah).
(4) Paid-up capital at establishment must be deposited in cash and fully placed in the form of time deposits and/or checking accounts in the name of the Company at commercial banks, sharia commercial banks, and/or sharia business units of commercial banks in Indonesia for the Company.

Section Five
Increase of Minimum Company Equity
Article 13
(1) The Company is required to fulfill the minimum Equity set by the Financial Services Authority.
(2) The obligation to fulfill minimum Equity as referred to in paragraph (1) is done in 2 (two) stages:
a. The first stage is done no later than December 31, 2026, the Company is required to have minimum Equity of at least:

1. IDR 3,000,000,000.00 (three billion rupiah) for Insurance Brokerage Companies;
2. IDR 4,000,000,000.00 (four billion rupiah) for Reinsurance Brokerage Companies; and
3. IDR 1,000,000,000.00 (one billion rupiah) for Insurance Loss Adjusting Companies; and
   b. The second stage is done no later than December 31, 2028, the Company is required to have minimum Equity of at least:
4. IDR 5,000,000,000.00 (five billion rupiah) for Insurance Brokerage Companies;
5. IDR 5,000,000,000.00 (five billion rupiah) for Reinsurance Brokerage Companies; and
6. IDR 1,500,000,000.00 (one billion five hundred million rupiah) for Insurance Loss Adjusting Companies.

Section Six
Administrative Sanctions
Article 14
(1) Violations of the provisions as referred to in Article 3 paragraph (1), Article 5 paragraph (1), Article 6 paragraph (1), Article 7, Article 8 paragraph (1), paragraph (4), Article 10 paragraph (1), Article 11 paragraph (4), paragraph (5), paragraph (7), and/or Article 13 paragraph (1), paragraph (2) are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all business activities; and/or
c. revocation of business license.
(2) The procedure and manner of imposing administrative sanctions are implemented in accordance with the provisions of Financial Services Authority Regulations concerning the procedure and manner of imposing administrative sanctions in the insurance field.

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

CHAPTER III
BUSINESS LICENSING
Section One
Requirements and Procedures for Obtaining Business License for Companies
Article 16
(1) Any Party conducting Insurance Brokerage Business, Reinsurance Brokerage Business, or Insurance Loss Adjusting Business must first obtain a business license from the Financial Services Authority. (2) To obtain a business license as referred to in paragraph (1), the Board of Directors must submit a business license application to the Financial Services Authority. (3) The business license application as referred to in paragraph (2) is submitted together with:
a. documents in accordance with the list of required documents for the business license application for the Company listed in Appendix Table I which is an inseparable part of this Financial Services Authority Regulation; and b. an application for assessment of competence and propriety for prospective principal parties of the Company. (4) For Parties that will conduct digital insurance brokerage services, the business license application as referred to in paragraph (2) is submitted together with an application for approval of the conduct of digital insurance brokerage services as referred to in Financial Services Authority Regulations concerning the conduct of Company business. (5) The assessment of competence and propriety for principal parties of the Company and the format of the application for assessment of competence and propriety as referred to in paragraph (3) letter b are implemented in accordance with Financial Services Authority Regulations concerning the assessment of competence and propriety for principal parties of financial service institutions.

Section Two
Approval and Rejection of Business License Applications
Article 17
(1) The Financial Services Authority gives approval, or rejection of the business license application as referred to in Article 16 within a maximum period of 20 (twenty) working days since the complete business license application documents are received. (2) In giving approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis of document completeness; b. verification of fund sources and capital deposits;
c. feasibility analysis of the Company's business plan in the framework of document requirements as referred to in Article 16 paragraph (3) letter a;
d. assessment of competence and propriety for prospective principal parties; and e. analysis of fulfillment of provisions in legislation in the insurance field.
(3) The Financial Services Authority may conduct an inspection of the Company's office to ensure the Company's operational readiness.
(4) In the event that based on the Financial Services Authority's analysis there are missing documents, the Board of Directors must submit the complete documents as referred to in paragraph (1) within a maximum of 20

(twenty) working days since the date of the document completeness request letter from the Financial Services Authority.
(5) In the event the Board of Directors has submitted the document completeness as referred to in paragraph (4), the Financial Services Authority grants approval or rejection in accordance with the provisions as referred to in paragraph (1). (6) If within 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (4) the Financial Services Authority has not received a response to the aforementioned document completeness request, the Company is deemed to have cancelled the business license application. (7) In the event the business license application as referred to in paragraph (1) is approved, the Financial Services Authority establishes the business license grant decision to the Company. (8) In the event the Financial Services Authority rejects the business license application as referred to in paragraph (1), the rejection must be done in writing accompanied by the reasons for rejection.

Article 18
(1) Companies that have received a business license from the Financial Services Authority are required to conduct business activities for a maximum of 3 (three) months calculated from the date the business license is established by the Financial Services Authority. (2) In conducting business activities, the Company is at all times required to have a valid professional indemnity policy with an insurance amount of at least equal to the Company's operational income. (3) The Company is required to submit a report on the implementation of business activities as referred to in paragraph (1) to the Financial Services Authority for a maximum of 10 (ten) working days since the date the business activities commence. (4) The report on the implementation of business activities as referred to in paragraph (3) must be submitted by the Board of Directors to the Financial Services Authority along with documents according to the list of requirements for the implementation of business activity reports for Companies that have received a business license from the Financial Services Authority listed in the Appendix in Table II which is an integral part of this Financial Services Authority Regulation. (5) In the event that a Company that has received a business license from the Financial Services Authority has not conducted business activities until the time limit as referred to in paragraph (1), the business license established by the Financial Services Authority is declared void and invalid.

Third Part
Administrative Sanctions
Article 19
(1) Violations of the provisions as referred to in Article 18 paragraph (1), paragraph (2), and/or paragraph (3) are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of the business activities; and/or
c. revocation of the business license.
(2) Violations of the provisions as referred to in Article 18 paragraph (3) are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 25,000,000.00 (twenty-five million rupiah). (3) The procedure and manner of imposing administrative sanctions are carried out in accordance with the provisions of the Financial Services Authority Regulation regarding the procedure and manner of imposing administrative sanctions in the insurance sector.

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

CHAPTER IV
CONTROLLERS AND FUNCTIONS
IN THE COMPANY ORGANIZATION

First Part
Controllers
Article 21
(1) Parties categorized as Controllers must meet the criteria as Key Parties (PSP).
(2) The Company is required to have at least 1 (one) Key Party (PSP).
(3) The Key Party (PSP) criteria as referred to in paragraph (1) include calculations of cumulative share ownership among shareholders based on:
a. ownership relationships; and/or b. family relationships up to the second degree.
(4) The Company is required to designate one shareholder based on the results of ownership relationships and/or family relationships up to the second degree as referred to in paragraph (3) as the Key Party (PSP).

(5) Controllers who are Key Parties (PSP) as referred to in paragraph (1) and paragraph (4) must meet integrity and financial feasibility requirements as regulated in the Financial Services Authority Regulation regarding the assessment of ability and propriety for key parties of financial service institutions. (6) The procedure for assessing the ability and propriety of Controllers is carried out in accordance with the Financial Services Authority Regulation regarding the assessment of ability and propriety for key parties of financial service institutions.

Second Part
Functions in the Company Organization
Article 22
(1) Insurance Brokerage Companies are required to have an organizational structure that clearly depicts the separation of functions at least:
a. services; b. brokerage technical;
c. administration and finance;
d. internal audit; and e. implementation of anti-money laundering programs, counter-terrorism financing, counter-proliferation financing of weapons of mass destruction, and other financial crimes. (2) Reinsurance Brokerage Companies are required to have an organizational structure that clearly depicts the separation of functions at least:
a. services; b. brokerage technical;
c. administration and finance; and
d. internal audit.
(3) Insurance Loss Assessment Companies are required to have an organizational structure that clearly depicts the separation of functions at least:
a. services; b. insurance loss assessment technical;
c. administration and finance; and
d. internal audit.
(4) The organizational structure as referred to in paragraph (1) through paragraph (3) must be completed with written descriptions of duties, authorities, responsibilities, and work procedures, established by the Board of Directors. (5) The organizational structure as referred to in paragraph (1) through paragraph (3) must reflect good internal controls. (6) The Company is required to have an organizational structure as referred to in paragraph (1) through paragraph (3) that reflects good internal controls. (7) The Company is required to have employees responsible for each function as referred to in paragraph (1) through paragraph (3).

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

Third Part
Administrative Sanctions
Article 23
(1) Violations of the provisions as referred to in Article 21 paragraph (2), paragraph (4), and/or Article 22 paragraph (1), paragraph (2), paragraph (3), paragraph (4), paragraph (6), paragraph (7), paragraph (8) are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of the business activities; and/or
c. revocation of the business license.
(2) The procedure and manner of imposing administrative sanctions are carried out in accordance with the provisions of the Financial Services Authority Regulation regarding the procedure and manner of imposing administrative sanctions in the insurance sector.

Fourth Part
Re-evaluation of Key Parties
Article 24
In addition to imposing administrative sanctions as referred to in Article 23 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's key parties.

CHAPTER V
CONCURRENT POSITIONS AND CERTIFICATION OF KEY PARTIES, AND USE OF FOREIGN WORKERS

First Part
General
Article 25
(1) Insurance Brokerage Companies and Reinsurance Brokerage Companies are required to have Board of Directors members and Board of Commissioners members, each at least 2 (two) persons. (2) Companies are prohibited from having the number of Board of Commissioners members exceeding the number of Board of Directors members.

Second Part
Concurrent Position Provisions for
Board of Directors and Board of Commissioners
Article 26
(1) Companies are prohibited from appointing Board of Directors members who hold concurrent positions as directors or equivalent, Board of Commissioners members or equivalent, or

sharia supervisory boards in insurance companies and other companies.
(2) The prohibition of concurrent positions as referred to in paragraph (1) is excepted for Board of Directors members other than the President Director or equivalent to perform functional tasks as Board of Commissioners members or equivalent in subsidiary companies controlled by the Company as long as the concurrent position does not cause the person concerned to neglect the execution of duties and authorities as a Board of Directors member.

Article 27
(1) Companies are prohibited from appointing Board of Commissioners members who hold concurrent positions as:
a. Board of Commissioners members or equivalent in insurance companies with similar business fields; and/or b. Board of Directors members or equivalent in insurance companies and other companies. (2) Companies are prohibited from appointing Board of Commissioners members who hold concurrent positions other than as Board of Commissioners members or equivalent or sharia supervisory boards in at most 3 (three) other companies that:
a. are not insurance companies; and/or b. are insurance companies with dissimilar business fields.

Third Part
Certification
Article 28
(1) Board of Directors members of Insurance Brokerage Companies and Reinsurance Brokerage Companies who oversee insurance and reinsurance brokerage technical functions must hold brokerage certificates with a level at least 1 (one) level below the highest qualification from the Competency Assessment Institution (LSP) in the insurance sector registered with the Financial Services Authority. (2) Board of Directors members of Insurance Loss Assessment Companies who oversee insurance loss assessment technical functions must hold insurance loss assessor certificates with a level at least 1 (one) level below the highest qualification from the Competency Assessment Institution (LSP) in the insurance sector registered with the Financial Services Authority. (3) Board of Directors members of Insurance Brokerage Companies and Reinsurance Brokerage Companies other than those overseeing insurance and reinsurance brokerage technical functions must hold:
a. brokerage certificates with a level at least 1 (one) level below the highest qualification from the Competency Assessment Institution (LSP) in the insurance sector registered with the Financial Services Authority; or

b. expertise certificates in risk management from the Competency Assessment Institution (LSP) in risk management registered with the Financial Services Authority.
(4) The certificates as referred to in paragraph (1) through paragraph (3) are one of the requirements that must be met for the propriety ability assessment.
(5) Further provisions regarding certification for Board of Directors members as referred to in paragraph (1) through paragraph (3) are established by the Financial Services Authority.

Fourth Part
Use of Foreign Workers
Article 29
(1) Companies may use foreign workers.
(2) Foreign workers as referred to in paragraph (1) must meet the following provisions:
a. may only hold positions as:

1. Experts with a job level one level below the Board of Directors; and/or
2. consultants; and
   b. may only be assigned to handle functions:
3. brokerage technical, for Insurance Brokerage Companies and Reinsurance Brokerage Companies;
4. insurance loss assessment technical, for Insurance Loss Assessment Companies;
5. marketing; and/or
6. information systems.
   (3) Companies are prohibited from employing foreign workers as referred to in paragraph (1) who do not meet the provisions:
   a. having expertise according to the field of responsibility; b. the foreign worker holds a position that cannot yet be filled by Indonesian workers; and
   c. meeting labor legislation provisions.
   (4) Companies employing foreign workers as Experts as referred to in paragraph (2) letter a number 1 must meet the provisions:
   a. foreign workers are employed for a maximum period of 3 (three) years and can be extended 1 (one) time for a maximum of 1 (one) year; and b. foreign workers are accompanied by Indonesian workers for the purpose of knowledge, expertise, and technology transfer. (5) Companies employing foreign workers as consultants as referred to in paragraph (2) letter a number 2 must meet the provisions:
   a. foreign workers are employed for a maximum period of 3 (three) years and can be extended 1 (one) time for a maximum of 1 (one) year; b. foreign worker assignments are only to execute specific projects or programs in the insurance sector; and b. foreign worker assignments are accompanied by Indonesian workers for the purpose of knowledge, expertise, and technology transfer. (6) The Financial Services Authority has the authority to issue written instructions to Companies to terminate foreign workers who do not meet the requirements as referred to in paragraph (2) through paragraph (5). (7) Companies are required to terminate foreign workers who do not meet the requirements based on written instructions from the Financial Services Authority as referred to in paragraph (6).

Article 30
(1) Companies employing foreign workers as referred to in Article 29 must first include the plan to use foreign workers in the business plan.
(2) Companies employing foreign workers and having included the plan to use foreign workers in the business plan as referred to in paragraph (1) must first report to the Financial Services Authority for a maximum of 20 (twenty) working days before the aforementioned foreign workers are employed. (3) Reports on the plan to employ foreign workers as referred to in paragraph (2) must be submitted by the Board of Directors to the Financial Services Authority along with documents according to the list of requirements for the report on the plan to employ foreign workers listed in the Appendix in Table III which is an integral part of this Financial Services Authority Regulation.

Article 31
(1) Companies are required to report the appointment or termination of foreign workers to the Financial Services Authority for a maximum of 20 (twenty) working days since the date of appointment or termination. (2) Reports on the appointment of foreign workers as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority along with documents according to the list of requirements for the report on the appointment of foreign workers listed in the Appendix in Table IV which is an integral part of this Financial Services Authority Regulation. (3) Reports on the termination of foreign workers as referred to in paragraph (1) must

be submitted by the Board of Directors to the Financial Services Authority accompanied by the reasons for termination.

Article 32
(1) Companies employing foreign workers as referred to in Article 29 paragraph (1) are required to conduct knowledge transfer activities from foreign workers to Company employees. (2) Knowledge transfer as referred to in paragraph (1) must be made in the form of annual education and training programs for Company employees. (3) The implementation of knowledge transfer programs in the form of annual education and training programs for Company employees as referred to in paragraph (2) must be included by the Company in the business plan realization report.

Fifth Part
Human Resource Development
Article 33
(1) Companies are required to prepare and submit a human resource quality development program plan every year to the Financial Services Authority no later than November 30 before the plan year begins. (2) Human resource development for Company employees as referred to in paragraph (1) must be budgeted and realized in the form of annual human resource education and training programs. (3) The implementation of annual human resource education and training programs as referred to in paragraph (2) must be reported in the business plan realization report. (4) Further provisions regarding the cost of annual human resource education and training programs as referred to in paragraph (2) are established by the Financial Services Authority.

Sixth Part
Administrative Sanctions
Article 34
(1) Violations of the provisions as referred to in Article 25, Article 26 paragraph (1), Article 27, Article 28 paragraph (1), paragraph (2), paragraph (3), Article 29 paragraph (2), paragraph (3), paragraph (4), paragraph (5), paragraph (7), Article 30 paragraph (2), Article 31 paragraph (1), Article 32 paragraph (1), paragraph (3), and/or Article 33 paragraph (1), paragraph (2), paragraph (3) are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of the business activities; and/or
c. revocation of the business license.

(2) Violations of the provisions as referred to in Article 30 paragraph (2), and/or Article 31 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 100,000,000.00 (one hundred million rupiah). (3) Violations of the provisions as referred to in Article 33 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 25,000,000.00 (twenty-five million rupiah). (4) The procedure and manner of imposing administrative sanctions are carried out in accordance with the provisions of the Financial Services Authority Regulation regarding the procedure and manner of imposing administrative sanctions in the insurance sector.

Seventh Part
Re-evaluation of Key Parties
Article 35
In addition to imposing administrative sanctions as referred to in Article 34 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's key parties.

CHAPTER VI
INSURANCE BROKERS AND REINSURANCE BROKERS

First Part
Insurance Brokers
Article 36
(1) Insurance Brokerage Companies are required to employ at least 1 (one) Insurance Broker on a full-time basis.
(2) Insurance Brokers must have sufficient knowledge and ability and have a good reputation.

Article 37
Insurance Brokers as referred to in Article 36 must meet the following requirements:
a. hold brokerage certificates with a level at least 2 (two) levels below the highest qualification from the Competency Assessment Institution (LSP) in the insurance sector; b. have work experience in brokerage technical and/or insurance technical fields for at least 3 (three) years; and
c. be members of the Indonesian Insurance Broker Professional Association.

Article 38
(1) Insurance Brokers as referred to in Article 37 must be registered with the Financial Services Authority.
(2) To be registered as referred to in paragraph (1), the Board of Directors of Insurance Brokerage Companies must register with the Financial Services Authority along with documents according to the list of requirements for Insurance Broker registration documents listed in the Appendix in Table V which is an integral part of this Financial Services Authority Regulation.

Article 39
(1) The Financial Services Authority grants approval or rejection of registration as referred to in Article 38 paragraph (2) within a maximum period of 20 (twenty) working days since the complete registration documents are received. (2) In the event that based on the Financial Services Authority's analysis there are missing documents, Insurance Brokerage Companies must submit document completeness as referred to in paragraph (2) for a maximum of 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (3) In the event that Insurance Brokerage Companies have submitted document completeness as referred to in paragraph (2), the Financial Services Authority grants approval or rejection in accordance with the provisions as referred to in paragraph (1). (4) In order to process the registration application as referred to in paragraph (1), the Financial Services Authority examines the completeness and truthfulness of the application documents. (5) If within 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (2) the Financial Services Authority has not received a response to the aforementioned document completeness request, the Insurance Brokerage Company is deemed to have cancelled the registration application. (6) In the event the registration application as referred to in paragraph (1) is approved, the Financial Services Authority issues a registration certificate submitted to the Insurance Brokerage Company. (7) In the event the Financial Services Authority rejects the registration application as referred to in paragraph (1), the rejection must be done in writing accompanied by the reasons.

Article 40
The Insurance Broker registration certificate as referred to in Article 39 paragraph (6) can be revoked in the event that the Insurance Broker:

a. is no longer a member of the Indonesian Insurance Broker Professional Association; b. is declared to have violated the code of ethics and practice standards by the Indonesian Insurance Broker Professional Association;
c. commits disgraceful acts in the financial service business field; and/or
d. no longer holds brokerage certificates with a level at least 2 (two) levels below the highest qualification from the Competency Assessment Institution (LSP) in the insurance sector.

Article 41
(1) Insurance Brokerage Companies are required to report the appointment and termination of Insurance Brokers within a maximum period of 15 (fifteen) working days since the date of appointment or termination. (2) Reports on the appointment of Insurance Brokers as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching documents in the form of Insurance Broker registration certificates and Insurance Broker appointment letters. (3) Reports on the termination of Insurance Brokers as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the Insurance Broker termination decision letter signed by the Board of Directors. (4) Insurance Brokerage Companies are responsible for the legal actions and acts performed by Insurance Brokers on behalf of the Insurance Brokerage Company.

Second Part
Reinsurance Brokers
Article 42
(1) Reinsurance Brokerage Companies are required to employ at least 1 (one) Reinsurance Broker on a full-time basis.
(2) Reinsurance Brokers must have sufficient knowledge and ability and have a good reputation.

Article 43
Reinsurance Brokers as referred to in Article 42 must meet the following requirements:
a. hold brokerage certificates with a level at least 2 (two) levels below the highest qualification from the Competency Assessment Institution (LSP) in the insurance sector; b. have work experience in brokerage technical and/or risk management fields for at least 3 (three) years; and
c. be members of the Indonesian Reinsurance Broker Professional Association.

Article 44
(1) Reinsurance Brokers as referred to in Article 43 must be registered with the Financial Services Authority.
(2) To be registered as referred to in paragraph (1), the Board of Directors of the Reinsurance Brokerage Company must register with the Financial Services Authority along with documents according to the list of registration requirements for Reinsurance Brokers contained in the Appendix in Table VI, which is an integral part of this Financial Services Authority Regulation.

Article 45
(1) The Financial Services Authority grants approval or rejection of the registration as referred to in Article 44 paragraph (2) within a maximum period of 20 (twenty) working days from the submission of complete documents. (2) In the event that the Financial Services Authority's analysis reveals incomplete documents, the Reinsurance Brokerage Company must submit the complete documents as referred to in paragraph (2) within a maximum of 20 (twenty) working days from the date of the document completion request letter from the Financial Services Authority. (3) In the event that the Reinsurance Brokerage Company has submitted the complete documents as referred to in paragraph (2), the Financial Services Authority grants approval or rejection in accordance with the provisions as referred to in paragraph (1). (4) In order to process the registration application as referred to in paragraph (1), the Financial Services Authority conducts an examination of the completeness of the application documents. (5) If within 20 (twenty) working days from the date of the document completion request letter as referred to in paragraph (2), the Financial Services Authority has not received a response to the requested document completion, the Reinsurance Brokerage Company is deemed to have cancelled the registration application, and the application documents are returned to the Reinsurance Brokerage Company. (6) In the event that the registration application as referred to in paragraph (1) is approved, the Financial Services Authority issues a written registration certificate to the Reinsurance Brokerage Company. (7) In the event that the Financial Services Authority rejects the registration application as referred to in paragraph (1), the rejection must be done in writing accompanied by the reasons.

Article 46
The Reinsurance Broker Registration Certificate as referred to in Article 45 paragraph (6) may be revoked in the event that the Reinsurance Broker:
a. is no longer a member of the Reinsurance Broker Professional Association; b. is declared to have violated the code of ethics and practice standards by the Reinsurance Broker Professional Association;
c. commits disgraceful acts in the insurance business field; and/or
d. no longer holds a brokerage certificate with the lowest level of 2 (two) levels below the highest qualification from the Competency Testing Agency (LSP) in the insurance field.

Article 47
(1) Reinsurance Brokerage Companies are required to report the appointment and dismissal of Reinsurance Brokers within a maximum period of 15 (fifteen) working days from the date of appointment or dismissal. (2) The reporting of the appointment of Reinsurance Brokers as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching documents consisting of the Reinsurance Broker Registration Certificate and the Reinsurance Broker appointment letter. (3) The reporting of the dismissal of Reinsurance Brokers as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the Reinsurance Broker dismissal decision letter signed by the Board of Directors. (4) Insurance Brokerage Companies are responsible for the legal actions and acts carried out by Insurance Brokers on behalf of the Insurance Brokerage Company.

Part Three
Administrative Sanctions

Article 48
(1) Violations of the provisions as referred to in Article 36, Article 38 paragraph (1), Article 41 paragraph (1), paragraph (4), Article 42, Article 44 paragraph (1), and/or Article 47 paragraph (1), paragraph (4) are subject to administrative sanctions in the form of:
a. written warning; b. cancellation of registration statement for Insurance Brokers and Reinsurance Brokers;
c. restriction of business activities, for part or all of the business activities; and/or
d. revocation of business license.
(2) Violations of the provisions as referred to in Article 41 paragraph (1) and/or Article 47 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 100,000,000.00 (one hundred million rupiah).

(3) The procedure and manner of imposing administrative sanctions are carried out in accordance with the Financial Services Authority Regulation regarding the procedure and manner of imposing administrative sanctions in the insurance field.

Part Four
Re-evaluation of Key Parties

Article 49
In addition to imposing administrative sanctions as referred to in Article 48 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's Key Parties.

CHAPTER VII
EXPERT STAFF

Part One
Expert Staff of Insurance Brokerage Companies

Article 50
(1) Insurance Brokerage Companies are required to employ at least 1 (one) Expert Staff of Insurance Brokerage Company on a full-time basis.
(2) The Expert Staff of Insurance Brokerage Company as referred to in paragraph (1) must at all times meet the following minimum requirements:
a. hold an Insurance Broker certificate with the highest level from the Competency Testing Agency (LSP) in the insurance field; b. have work experience in brokerage technical and/or insurance technical fields of at least 3 (three) years; and
c. not be subject to sanctions from the Insurance Broker Professional Association.

Article 51
(1) Insurance Brokerage Companies are required to adjust the Expert Staff in sufficient numbers according to business capacity and complexity.
(2) The Expert Staff of Insurance Brokerage Company as referred to in paragraph (1) must at all times meet the following minimum requirements:
a. hold an Insurance Broker Expert certificate with a level at least 1 (one) level below the highest qualification from the Competency Testing Agency (LSP) in the insurance field; b. have work experience in brokerage technical and/or insurance technical fields of at least 3 (three) years; and
c. not be subject to sanctions from the Insurance Broker Professional Association.
(3) The Expert Staff of Insurance Brokerage Company as referred to in paragraph (1) is placed in the unit responsible for the brokerage technical function.

Article 52
Insurance Brokerage Companies are prohibited from appointing Expert Staff as referred to in paragraph (1) who concurrently hold positions as members of the Board of Directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, or employees of other companies.

Article 53
(1) Insurance Brokerage Companies are required to report the appointment and/or dismissal of Expert Staff of Insurance Brokerage Companies within a maximum of 20 (twenty) working days from the date of appointment or dismissal of the Expert Staff of Insurance Brokerage Company. (2) The reporting of the appointment of Expert Staff as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority along with documents according to the list of appointment reporting document requirements contained in the Appendix in Table VII, which is an integral part of this Financial Services Authority Regulation. (3) The reporting of the dismissal of Expert Staff as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority.

Part Two
Expert Staff of Reinsurance Brokerage Companies

Article 54
(1) Reinsurance Brokerage Companies are required to employ at least 1 (one) Expert Staff of Reinsurance Brokerage Company on a full-time basis.
(2) The Expert Staff of Reinsurance Brokerage Company as referred to in paragraph (1) must at all times meet the following minimum requirements:
a. hold a Reinsurance Broker Expert certificate with the highest qualification from the Competency Testing Agency (LSP) in the insurance field; b. have work experience in brokerage technical and risk management technical fields of at least 3 (three) years; and
c. not be subject to sanctions from the Reinsurance Broker Professional Association.

Article 55
(1) Reinsurance Brokerage Companies are required to adjust the Expert Staff in sufficient numbers according to business capacity and complexity.
(2) The Expert Staff of Reinsurance Brokerage Company as referred to in paragraph (1) must at all times meet the following minimum requirements:
a. hold a Reinsurance Broker Expert certificate with a qualification at least 1 (one) level below the highest qualification from the Competency Testing Agency (LSP) in the insurance field; b. have work experience in brokerage technical and/or reinsurance technical fields of at least 3 (three) years; and
c. not be subject to sanctions from the Reinsurance Broker Professional Association.
(3) The Expert Staff of Reinsurance Brokerage Company as referred to in paragraph (1) is placed in the unit responsible for the brokerage technical function.
(4) Reinsurance Brokerage Companies are prohibited from appointing Expert Staff as referred to in paragraph (1) who concurrently hold positions as members of the Board of Directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, or employees of other companies. (5) Expert Staff of Reinsurance Brokerage Companies providing services related to insurance based on Sharia principles must have experience related to the technical management of risk based on Sharia principles.

Article 56
(1) Reinsurance Brokerage Companies are required to report the appointment and/or dismissal of Expert Staff of Reinsurance Brokerage Companies within a maximum period of 20 (twenty) working days from the date of appointment and/or dismissal of the Expert Staff of Reinsurance Brokerage Company. (2) The reporting of the appointment of Expert Staff as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority along with documents according to the list of appointment reporting document requirements contained in the Appendix in Table VII, which is an integral part of this Financial Services Authority Regulation. (3) The reporting of the dismissal of Expert Staff as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority.

Part Three
Expert Staff of Insurance Loss Assessors

Article 57
(1) Insurance Loss Assessor Companies are required to employ at least 1 (one) Expert Staff of Insurance Loss Assessor Company on a full-time basis.
(2) The Expert Staff of Insurance Loss Assessor Company as referred to in paragraph (1) must at all times meet the following minimum requirements:
a. hold an Insurance Loss Assessor Expert certificate with the highest qualification from the Competency Testing Agency (LSP) in the insurance field; b. have work experience in loss assessment fields of at least 3 (three) years; and
c. not be subject to sanctions from the relevant professional association.

Article 58
(1) Insurance Loss Assessor Companies are required to adjust the Expert Staff in sufficient numbers according to business capacity and complexity.
(2) The Expert Staff of Insurance Loss Assessor Company as referred to in paragraph (1) must at all times meet the following minimum requirements:
a. hold an Insurance Loss Assessor Expert certificate with a qualification at least 1 (one) level below the highest qualification from the Competency Testing Agency (LSP) in the insurance field; b. have work experience in loss assessment fields of at least 3 (three) years; and
c. not be subject to sanctions from the relevant professional association.
(3) The Expert Staff of Insurance Loss Assessor Company as referred to in paragraph (1) is placed in the unit responsible for the loss assessment technical function.
(4) Insurance Loss Assessor Companies are prohibited from appointing Expert Staff as referred to in paragraph (1) who concurrently hold positions as members of the Board of Directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, or employees of other companies.

Article 59
(1) Insurance Loss Assessor Companies are required to report the appointment and/or dismissal of Expert Staff of Insurance Loss Assessors within a maximum period of 20 (twenty) working days from the date of appointment and/or dismissal of the Expert Staff of Insurance Loss Assessors. (2) The reporting of the appointment of Expert Staff as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority along with documents according to the list of appointment reporting document requirements contained in the Appendix in Table VII, which is an integral part of this Financial Services Authority Regulation. (3) The reporting of the dismissal of Expert Staff as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority.

Part Four
Administrative Sanctions

Article 60
(1) Violations of the provisions as referred to in Article 50 paragraph (1), Article 51 paragraph (1), Article 52, Article 53 paragraph (1), Article 54 paragraph (1), Article 55 paragraph (1), paragraph (4), paragraph (5), Article 56 paragraph (1), Article 57 paragraph (1), Article 58 paragraph (1), paragraph (4), and/or Article 59 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of the business activities; and/or
c. revocation of business license.
(2) Violations of the provisions as referred to in Article 53 paragraph (1), Article 56 paragraph (1), and/or Article 59 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 100,000,000.00 (one hundred million rupiah). (3) The procedure and manner of imposing administrative sanctions are carried out in accordance with the Financial Services Authority Regulation regarding the procedure and manner of imposing administrative sanctions in the insurance field.

Part Five
Re-evaluation of Key Parties

Article 61
In addition to imposing administrative sanctions as referred to in Article 60 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's Key Parties.

CHAPTER VIII
OFFICES OUTSIDE THE HEAD OFFICE

Part One
Offices Outside the Head Office

Article 62
(1) Companies may open offices outside the head office within or outside the country.
(2) Companies are fully responsible for every office owned/managed by:
a. The Company; or b. other parties authorized to use the Company's name.

Article 63
(1) Companies are required to include every plan to open offices outside the head office in the Company's business plan.
(2) The obligation as referred to in paragraph (1) is carried out in accordance with the Financial Services Authority Regulation regarding business plans of non-bank financial service institutions.

Article 64
(1) Insurance Brokerage Companies and Reinsurance Brokerage Companies that intend to close offices outside the head office must first:
a. notify policyholders, insured parties, or participants regarding the plan to close offices outside the head office; b. notify policyholders, insured parties, or participants regarding the procedure for settling rights and obligations; and
c. implement the transfer of services to policyholders, insured parties, or participants, as well as rights and obligations from the offices outside the head office being closed to the head office or the nearest office outside the head office.
(2) In the event of closing offices outside the head office managed or owned by third parties, in addition to the requirements as referred to in paragraph (1), Insurance Brokerage Companies and Reinsurance Brokerage Companies are required to settle rights and obligations as agreed upon in the cooperation agreement. (3) The procedure for settling rights and obligations as referred to in paragraph (1) letter b must be carried out in accordance with applicable laws and regulations and considering the interests of policyholders, insured parties, or participants.

Article 65
Companies are required to report the closure of offices outside the head office as referred to in Article 64 paragraph (1) to the Financial Services Authority within a maximum of 10 (ten) working days calculated from the date of closure of the offices outside the head office.

Part Two
Administrative Sanctions

Article 66
(1) Violations of the provisions as referred to in Article 63 paragraph (1), Article 64, and/or Article 65 are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of the business activities; and/or
c. revocation of business license.
(2) Violations of the provisions as referred to in Article 65 are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 100,000,000.00 (one hundred million rupiah). (3) The procedure and manner of imposing administrative sanctions are carried out in accordance with the Financial Services Authority Regulation regarding the procedure and manner of imposing administrative sanctions in the insurance field.

Part Three
Re-evaluation of Key Parties

Article 67
In addition to imposing administrative sanctions as referred to in Article 66 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's Key Parties.

CHAPTER IX
MEMBERSHIP IN ASSOCIATIONS

Part One
Obligation to Become Members of Associations

Article 68
(1) Every Company is required to become a member of one of the Associations appropriate to the type of its business.
(2) Associations as referred to in paragraph (1) must obtain written approval from the Financial Services Authority.
(3) To obtain approval as referred to in paragraph (2), Associations must submit applications to the Financial Services Authority along with documents according to the list of application document requirements for Association approval contained in the Appendix in Table VIII, which is an integral part of this Financial Services Authority Regulation.

Part Two
Administrative Sanctions

Article 69
(1) Violations of the provisions as referred to in Article 68 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of the business activities; and/or
c. revocation of business license.
(2) The procedure and manner of imposing administrative sanctions are carried out in accordance with the Financial Services Authority Regulation regarding the procedure and manner of imposing administrative sanctions in the insurance field.

Part Three
Re-evaluation of Key Parties

Article 70
In addition to imposing administrative sanctions as referred to in Article 69 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of the Company's Key Parties.

CHAPTER X
CHANGE OF OWNERSHIP

Part One
General Provisions

Article 71
(1) For every change of ownership, Companies are required to first obtain approval from the Financial Services Authority.
(2) Changes of ownership as referred to in paragraph (1) include:
a. changes in share composition; b. Takeover;
c. addition of new shareholders; and
d. changes in the Company's status from closed to open or vice versa.
(3) In the event that an open Company trades its shares on the stock exchange, approval of the change of ownership as referred to in paragraph (1) must be obtained in the event of changes to the Controller. (4) Plans for changes in ownership as referred to in paragraph (2) must be included in the Company's business plan. (5) Fulfillment of requirements regarding the inclusion of plans for changes in ownership as referred to in paragraph (4) does not apply to Companies that intend to carry out changes in ownership in the context of fulfilling Minimum Equity as referred to in Article 13 and Financial Services Authority Regulations regarding the conduct of business by Companies. (6) In the event that changes in ownership as referred to in paragraph (2) are caused by the addition of Paid-up Capital, the addition of Paid-up Capital is prohibited from being carried out other than in the form of:
a. cash deposits; b. conversion/transfer of profit balances;
c. conversion/transfer of loans; and/or
d. bonus shares.
(7) In certain conditions, the form of adding Paid-up Capital may be carried out through other forms based on approval from the Financial Services Authority.

Article 72
(1) Companies that carry out changes in ownership through Takeover are required to adjust in accordance with the provisions regarding Paid-up Capital as referred to in Article 12. (2) The obligation to adjust the provisions regarding Paid-up Capital as referred to in paragraph (1) is exempted for Companies that intend to carry out:
a. changes in ownership through Takeover that are the result of inheritance; b. changes in ownership to fulfill Minimum Equity as referred to in Article 13 and Financial Services Authority Regulations regarding the conduct of business by Companies;
c. changes in ownership in the context of the Company Group's restructuring; and/or
d. changes in ownership based on the Financial Services Authority's assessment.
(3) Adjustments regarding the provisions on Paid-up Capital as referred to in paragraph (1) must be carried out at the time of implementing the change in ownership.

Part Two
Approval of Changes in Ownership

Article 73
(1) In the event that changes in ownership as referred to in Article 71 paragraph (2) result in a new Controller, the Financial Services Authority conducts an assessment of the ability and propriety of the prospective Controller. (2) To obtain approval for changes in ownership as referred to in Article 71 paragraph (1), shareholders/prospective shareholders or equivalents through the Board of Directors must submit an application for approval to the Financial Services Authority. (3) Applications for approval of changes in ownership as referred to in paragraph (1) are submitted along with:
a. documents according to the list of document requirements for approval of changes in ownership contained in the Appendix in Table IX, which is an integral part of this Financial Services Authority Regulation; and b. requests for assessment of ability and propriety for key parties. (4) The assessment of ability and propriety for key parties of the Company and the format for requests for assessment of ability and propriety as referred to in paragraph (3) letter b are carried out in accordance with Financial Services Authority Regulations regarding the assessment of ability and propriety for key parties of Companies.

Article 74
(1) The Financial Services Authority grants approval, requests for document completion, or rejection of the application for approval as referred to in Article 73 paragraph (2) within a maximum period of 20 (twenty) working days from

application for approval of ownership change received in complete form.
(2) In order to provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 73 paragraph (3) letter a; b. analysis of the feasibility of the ownership change plan;
c. assessment of the ability and propriety of the prospective Controller; and
d. analysis of compliance with regulations in the field of insurance.
(3) To support the analysis process regarding the feasibility of the ownership change plan as referred to in paragraph (2) letter b, the Financial Services Authority is authorized to request supporting documents in addition to the documents submitted as referred to in Article 73 paragraph (3) letter a. (4) The Board of Directors must submit the complete supporting documents as referred to in paragraph (3) within a maximum of 20 (twenty) working days from the date of the letter requesting document completeness from the Financial Services Authority. (5) In the event that the Company has submitted the complete documents as referred to in paragraph (3), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (1). (6) If within 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (4) the Financial Services Authority has not received a response to the request for document completeness, the Company is considered to have cancelled the ownership change application. (7) In the event that the ownership change application as referred to in paragraph (1) is approved, the Financial Services Authority issues an approval letter to the Company. (8) In the event that the Financial Services Authority rejects the ownership change application as referred to in paragraph (1), the rejection is conducted in writing and accompanied by the reasons for rejection.

Article 75
(1) In the event that the Company's ownership change requires the approval of the General Meeting of Shareholders, the Company that has obtained approval for the ownership change as referred to in Article 74 paragraph (1) from the Financial Services Authority must hold a General Meeting of Shareholders approving the ownership change within a maximum of 60 (sixty) working days calculated from the date of the Financial Services Authority's approval letter.

(2) If the time limit as referred to in paragraph (1) has expired and the Company has not held a General Meeting of Shareholders approving the ownership change, the Financial Services Authority is authorized to revoke the previously granted ownership change approval.

Article 76
(1) The Company is required to report the implementation of the ownership change as referred to in Article 75 paragraph (1) to the Financial Services Authority within a maximum of 15 (fifteen) working days calculated from the date of receipt of the proof of approval and/or proof of notification receipt letter from the competent authority. (2) The reporting of the implementation of the ownership change as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority together with documents according to the list of requirements for reporting the implementation of ownership change contained in the Appendix in table X which is an integral part of this Financial Services Authority Regulation.

Third Part
Administrative Sanctions

Article 77
(1) Violations of the provisions as referred to in Article 71 paragraph (1), paragraph (3), paragraph (6), Article 72 paragraph (1), paragraph (3), and/or Article 76 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of the business activities; and/or
c. revocation of business license.
(2) Violations of the provisions as referred to in Article 71 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 100,000,000.00 (one hundred million rupiah). (3) Violations of the provisions as referred to in Article 76 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 100,000,000.00 (one hundred million rupiah). (4) The procedure and manner of imposing administrative sanctions are carried out in accordance with the provisions of the Financial Services Authority Regulation regarding the procedure and manner of imposing administrative sanctions in the field of insurance.

Fourth Part
Re-evaluation of Principal Parties

Article 78
In addition to imposing administrative sanctions as referred to in Article 77 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of the Company's principal parties.

CHAPTER XI
REPORTING

First Part
Reporting of Articles of Association Changes

Article 79
(1) Companies making certain changes to the Articles of Association are required to report to the Financial Services Authority within a maximum of 15 (fifteen) working days from the date of the letter:
a. approval; b. ratification; or
c. notification receipt,
from the competent authority.
(2) Certain changes to the Articles of Association as referred to in paragraph (1) consist of:
a. changes to the Company's name, including in the event of a Merger or Consolidation of 2 (two) or more Companies; b. changes to the location of the Company's headquarters;
c. additions to Paid-up Capital for Companies in the form of limited liability companies, including additions to Paid-up Capital for public companies that trade their shares on the stock exchange and do not result in changes to the Controller; and
d. other changes to the Articles of Association based on the request of the Financial Services Authority.
(3) Reporting of the Company's name change as referred to in paragraph (2) letter a must be submitted by the Board of Directors to the Financial Services Authority together with documents according to the list of requirements for documents for the Company's name change contained in the Appendix in table XI which is an integral part of this Financial Services Authority Regulation. (4) Reporting of changes to the Company's headquarters location as referred to in paragraph (2) letter b must be submitted by the Board of Directors to the Financial Services Authority together with documents according to the list of requirements for reporting documents for changes to the Company's headquarters location contained in the Appendix in table XII which is an integral part of this Financial Services Authority Regulation.

(5) Reporting of additions to the Company's Paid-up Capital as referred to in paragraph (2) letter c must be submitted by the Board of Directors to the Financial Services Authority together with documents according to the list of requirements for reporting documents for additions to the Company's paid-up capital contained in the Appendix in table XIII which is an integral part of this Financial Services Authority Regulation. (6) Reporting of changes to the Articles of Association caused by additions to Paid-up Capital as referred to in paragraph (2) letter d is conducted by the Company in the event that the capital addition does not result in:
b. changes to share composition;
c. takeovers; and/or
d. additions of new shareholders.

Second Part
Reporting of Changes to Board of Directors Members, Board of Commissioners Members, and Changes to Shareholder Names

Article 80
(1) Companies making:
a. changes to Board of Directors members and/or Board of Commissioners members; and/or b. changes to shareholder names, are required to report to the Financial Services Authority within a maximum of 15 (fifteen) working days calculated from the date of the notification receipt letter from the competent authority. (2) Reporting of changes to Board of Directors members and/or Board of Commissioners members, as referred to in paragraph (1) letter a, must be submitted by the Board of Directors to the Financial Services Authority together with documents according to the list of requirements for reporting documents for changes to Board of Directors members and/or Board of Commissioners members contained in the Appendix in table XIV which is an integral part of this Financial Services Authority Regulation. (3) Reporting of changes to the Company's shareholder names as referred to in paragraph (1) letter b must be submitted by the Board of Directors to the Financial Services Authority together with documents according to the list of requirements for reporting documents for changes to shareholder names contained in the Appendix in table XV which is an integral part of this Financial Services Authority Regulation.

Third Part
Reporting of Changes

Article 81
(1) Companies are required to report address changes:
a. headquarters; and b. offices outside the headquarters, to the Financial Services Authority within a maximum of 15 (fifteen) working days calculated from the date of the address change. (2) Reporting of changes to the headquarters address and offices outside the headquarters as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority together with documents according to the list of requirements for reporting documents for changes to the headquarters address and offices outside the headquarters contained in the Appendix in table XVI which is an integral part of this Financial Services Authority Regulation.

Fourth Part
Administrative Sanctions

Article 82
(1) Violations of the provisions as referred to in Article 79 paragraph (1), Article 80 paragraph (1), and/or Article 81 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of the business activities; and/or
c. revocation of business license.
(2) Violations of the provisions as referred to in Article 79 paragraph (1), Article 80 paragraph (1), and/or Article 81 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 100,000,000.00 (one hundred million rupiah). (3) The procedure and manner of imposing administrative sanctions are carried out in accordance with the provisions of the Financial Services Authority Regulation regarding the procedure and manner of imposing administrative sanctions in the field of insurance.

Fifth Part
Re-evaluation of Principal Parties

Article 83
In addition to imposing administrative sanctions as referred to in Article 82 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of the Company's principal parties.

CHAPTER XII
MERGERS AND CONSOLIDATIONS

First Part
General Provisions

Article 84
(1) Companies may conduct:
a. Mergers; or b. Consolidations.
(2) Mergers or Consolidations as referred to in paragraph (1) may only be conducted by Companies that:
a. are of the same legal entity form; and b. have similar fields of business.

Article 85
(1) Companies intending to conduct Mergers or Consolidations as referred to in Article 84 paragraph (1) must first obtain approval from the Financial Services Authority.
(2) To obtain approval as referred to in paragraph (1), Companies must meet the following requirements:
a. the Merger or Consolidation plan has been included in the Company's business plan; b. the Merger or Consolidation does not reduce the rights of policyholders, insured parties, or participants;
c. the financial condition of the Company resulting from the Merger or Consolidation must meet the Financial Services Authority's regulations; and
d. the prospective principal parties of the resulting Company from the Merger or Consolidation have obtained approval from the Financial Services Authority.
(3) To obtain approval for Mergers or Consolidations as referred to in paragraph (1), the Board of Directors must submit an application to the Financial Services Authority together with:
a. documents according to the list of requirements for the application for approval of Mergers or Consolidations contained in the Appendix in table XVII which is an integral part of this Financial Services Authority Regulation; and b. requests for assessment of ability and propriety for the prospective Principal Parties of the resulting Company from the Merger or Consolidation.

Article 86
(1) The Financial Services Authority provides approval, requests for document completeness, or rejection of applications for approval of Mergers or Consolidations as referred to in Article 85 paragraph (3) within a maximum of 20 (twenty) working days from the date the complete application documents for approval of Mergers or Consolidations are received. (2) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis of document completeness as referred to in Article 85 paragraph (3);

b. analysis of the feasibility of the implementation plan for Mergers or Consolidations;
c. assessment of the ability and propriety of the prospective principal parties resulting from the Mergers and Consolidations; and
d. analysis of compliance with regulations in the field of insurance.
(3) In the event that, based on the results of the Financial Services Authority's analysis, there are missing documents, the Board of Directors must submit the complete documents as referred to in Article 85 paragraph (3) within a maximum of 20 (twenty) working days from the date of the letter requesting document completeness from the Financial Services Authority. (4) In the event that the Board of Directors has submitted the complete documents as referred to in paragraph (3), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (1). (5) If within 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (3) the Financial Services Authority has not received a response to the request for document completeness, the Company is considered to have cancelled the application for approval of the Merger or Consolidation plan. (6) In the event that the application for approval of Mergers or Consolidations is approved, the Financial Services Authority issues an approval letter for the implementation plan of Mergers or Consolidations to the relevant Company. (7) In the event that the application for approval of Mergers or Consolidations is rejected, the rejection is communicated in writing and accompanied by the reasons for rejection.

Article 87
(1) Companies that have obtained approval for the implementation plan of Mergers or Consolidations from the Financial Services Authority must hold a General Meeting of Shareholders approving the Mergers or Consolidations within a maximum of 60 (sixty) working days calculated from the date of the Financial Services Authority's approval letter. (2) If the time limit as referred to in paragraph (1) has expired and the Company has not held a General Meeting of Shareholders approving the Mergers or Consolidations, the Financial Services Authority may revoke the previously granted approval for the implementation plan of Mergers or Consolidations.

Article 88
(1) Companies receiving Mergers or Companies resulting from Consolidations are required to report the implementation of the General Meeting of Shareholders approving the Mergers or Consolidations to the Financial Services Authority within a maximum of 15 (fifteen) working days calculated from the date of the General Meeting of Shareholders.

(2) Reporting of the implementation of the General Meeting of Shareholders approving the Mergers or Consolidations as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority together with documents according to the list of requirements for reporting documents for the implementation of the General Meeting of Shareholders approving the Mergers or Consolidations contained in the Appendix in table XVIII which is an integral part of this Financial Services Authority Regulation.

Article 89
Based on the reporting of the implementation of the General Meeting of Shareholders approving the Mergers or Consolidations as referred to in Article 88 paragraph (1), the Financial Services Authority:
a. conducts analysis and research on the completeness of documents as referred to in Article 88 paragraph (2); and b. revokes the business license of the Company merging or consolidating, effective from the date the Articles of Association are ratified, approved, or notified to the competent authority.

Article 90
(1) Companies receiving Mergers or Companies resulting from Consolidations are required to report the implementation of the Mergers or Consolidations to the Financial Services Authority within a maximum of 15 (fifteen) working days calculated from the date of the Articles of Association changes that have been ratified, approved, or notified to the competent authority. (2) Reporting of the implementation of the Mergers or Consolidations as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching documents in the form of copies of the Articles of Association changes that have been ratified, approved, or notified to the competent authority.

Article 91
Companies conducting Consolidations are prohibited from conducting operational activities under the name of the new Company resulting from the Consolidation before obtaining records of the implementation of the General Meeting of Shareholders and the implementation of the Consolidation from the Financial Services Authority.

Article 92
The Financial Services Authority issues business licenses to Companies that are the result of Consolidations, effective from the date the Articles of Association changes are ratified, approved, or notified to the competent authority.

Article 93
Mergers and Consolidations must be conducted in accordance with the provisions of the legislation.

Second Part
Administrative Sanctions

Article 94
(1) Violations of the provisions as referred to in Article 85 paragraph (1), Article 88 paragraph (1), Article 90 paragraph (1), Article 91, and/or Article 93 are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of the business activities; and/or
c. revocation of business license.
(2) Violations of the provisions as referred to in Article 85 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 100,000,000.00 (one hundred million rupiah). (3) Violations of the provisions as referred to in Article 88 paragraph (1) and/or Article 90 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 100,000,000.00 (one hundred million rupiah). (4) The procedure and manner of imposing administrative sanctions are carried out in accordance with the provisions of the Financial Services Authority Regulation regarding the procedure and manner of imposing administrative sanctions in the field of insurance.

Third Part
Re-evaluation of Principal Parties

Article 95
In addition to imposing administrative sanctions as referred to in Article 94 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of the Company's principal parties.

CHAPTER XIII
REVOCATION OF BUSINESS LICENSES

First Part
General Provisions

Article 96
(1) The revocation of a Company's business license is conducted by the Financial Services Authority.
(2) The revocation of business licenses as referred to in paragraph (1) is conducted in the event that the Company:
a. is dissolved due to:

1. General Meeting of Shareholders decision;
2. based on court decree;
3. follow-up to bankruptcy proceedings as regulated in the Law on Bankruptcy; or
4. conducting Mergers or Consolidations;
   b. is subject to administrative sanctions in the form of business license revocation; or
   c. ceases business activities so that it is no longer a Company based on the Company's request.

Article 97
(1) Companies declared bankrupt as referred to in Article 96 paragraph (2) letter a number 3 are required to submit a report to the Financial Services Authority within a maximum of 20 (twenty) working days from the date of the court's bankruptcy declaration decision. (2) The report as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority together with a copy of the bankruptcy decision or other documents containing information regarding the bankruptcy decision. (3) Based on the report as referred to in paragraph (1), the Financial Services Authority conducts the revocation of the business license.

Article 98
(1) Companies intending to cease their business activities as referred to in Article 96 paragraph (2) letter c must first obtain approval from the Financial Services Authority.
(2) To obtain approval as referred to in paragraph (1), the Board of Directors must submit an application for approval of the business activity cessation plan to the Financial Services Authority containing at least:
a. reasons for ceasing business activities; b. description of the Company's condition;
c. plan to settle the Company's obligations to all creditors; and
d. dissolution plan or other plans after the Company has settled its obligations to all creditors and the Company's business license has been revoked by the Financial Services Authority. (3) The application for approval of the business activity cessation plan as referred to in paragraph (2) must be submitted together with documents according to the list of requirements for the application for approval of the business activity cessation plan contained in the Appendix in table XIX which is an integral part of this Financial Services Authority Regulation.

Article 99
(1) The Financial Services Authority conducts research on the application for approval of the business activity cessation plan submitted by the Board of Directors as referred to in Article 98 paragraph (2). (2) Based on the results of the research as referred to in paragraph (1), within a maximum of 20 (twenty) working days from the receipt of the complete application for approval of the business activity cessation plan, the Financial Services Authority provides approval or rejection of the business activity cessation plan. (3) In the event that the Financial Services Authority provides approval as referred to in paragraph (2), the Company is required to:
a. cease all of the Company's business activities; b. announce the business activity cessation plan and the plan to settle the Company's obligations in newspapers, social media, and the Company's official website for 3 (three) consecutive days within a maximum of 10 (ten) days from the date of the letter approving the business activity cessation plan;
c. settle all of the Company's obligations within a maximum of 4 (four) months from the date of the letter approving the business activity cessation plan; and
d. appoint a public accountant to conduct audit services on the final balance sheet, including conducting verification to ensure the settlement of all obligations related to the Company's business activities. (4) The procedure for settling all obligations as referred to in paragraph (3) letter c must be conducted in accordance with the provisions of the legislation. (5) In the event that the application for approval of business activity cessation is rejected as referred to in paragraph (2), the rejection is communicated in writing and accompanied by the reasons for rejection.

Article 100
After all of the Company's obligations as referred to in Article 99 paragraph (3) have been settled, the Board of Directors must submit a report to the Financial Services Authority containing at least:
a. the implementation of the Company's business activity cessation as referred to in Article 99 paragraph (3) letter a; b. the implementation of the announcement as referred to in Article 99 paragraph (3) letter b;

c. implementation of the settlement of the Company's obligations as referred to in Article 99 paragraph (3) letter c;
d. the final balance sheet of the Company audited by a public accountant as referred to in Article 99 paragraph (3) letter d; and e. a stamped declaration letter from shareholders or equivalents of shareholders in a legal entity in the form of a cooperative stating that all obligations of the Company have been settled and that if claims arise in the future, they become the responsibility of the shareholders or equivalents of shareholders in the legal entity in the form of a cooperative.

Article 101
(1) The Financial Services Authority conducts an analysis of the reports submitted by the Board of Directors as referred to in Article 100.
(2) To conduct the analysis as referred to in paragraph (1), the Financial Services Authority may conduct direct examinations of the Company applying for the cessation of business activities. (3) Based on the results of the analysis and research as referred to in paragraph (1), within a maximum period of 30 (thirty) working days since the receipt of the complete report, the Financial Services Authority issues a decision regarding the revocation of the Company's business license. (4) A Company whose business license has been revoked is required to cease its business activities.

Article 102
Since the date of revocation of the Company's business license as referred to in Article 101 paragraph (3), if obligations of the Company that have not been settled emerge in the future, the shareholders or equivalents of shareholders in the legal entity in the form of a cooperative are responsible for such obligations.

Second Section
Administrative Sanctions

Article 103
(1) Violations of the provisions as referred to in Article 97 paragraph (1), Article 98 paragraph (1) and/or Article 99 paragraph (3), paragraph (4) are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of the business activities; and/or
c. revocation of business license.

(2) Violations of the provisions as referred to in Article 97 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of Rp500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of Rp100,000,000.00 (one hundred million rupiah). (3) Violations of the provisions as referred to in Article 98 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of Rp100,000,000.00 (one hundred million rupiah). (4) The procedures and methods for imposing administrative sanctions are carried out in accordance with the provisions of the Financial Services Authority Regulation regarding procedures and methods for imposing administrative sanctions in the insurance sector.

Third Section
Re-evaluation of Key Parties

Article 104
In addition to imposing administrative sanctions as referred to in Article 103 paragraph (1), the Financial Services Authority has the authority to conduct re-evaluation of the Company's key parties.

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

First Section
General Provisions

Article 105
(1) Applications for licensing, approval, or reporting as referred to in Article 16 paragraph (3), Article 17 paragraph (4), Article 18 paragraph (4), Article 30 paragraph (3), Article 31 paragraph (2), Article 38 paragraph (2), Article 39 paragraph (2), Article 41 paragraph (2), paragraph (3), Article 44 paragraph (2), Article 45 paragraph (2), Article 47 paragraph (2), paragraph (3), Article 53 paragraph (2), paragraph (3), Article 56 paragraph (2), paragraph (3), Article 59 paragraph (2), paragraph (3), Article 68 paragraph (3), Article 73 paragraph (3), Article 74 paragraph (4), Article 76 paragraph (2), Article 79 paragraph (3), paragraph (4), paragraph (5), Article 80 paragraph (2), paragraph (3), Article 81 paragraph (2), Article 85 paragraph (3), Article 86 paragraph (3), Article 88 paragraph (2), Article 90 paragraph (2), and Article 98 paragraph (3), must be submitted to the Financial Services Authority electronically through the Financial Services Authority's data communication network system. (2) With the submission of applications for licensing, approval, and reporting to the Financial Services Authority electronically as referred to in paragraph (1), the Company is not required to submit printed documents. (3) The Company is required to keep printed documents of the completeness of licensing and approval documents that have been submitted electronically as referred to in paragraph (1). (4) The Company is required to account for the truthfulness and correspondence of each document submitted electronically with the printed documents owned by the Company. (5) If needed, the Financial Services Authority may conduct verification and/or validation of the truthfulness and reasonableness of the printed documents of licensing, approval, and reporting applications as referred to in paragraph (3) which have been submitted electronically by the Company. (6) The Company is required to provide printed documents of licensing, approval, and reporting applications as referred to in paragraph (3) which have been submitted electronically by the Company during the implementation of verification and/or validation by the Financial Services Authority as referred to in paragraph (5). (7) All documents submitted electronically as referred to in paragraph (1) have legal force equivalent to printed documents. (8) In the event that the electronic system as referred to in paragraph (1) experiences technical disturbances, the submission of applications for licensing, approval, and reporting is submitted to the Financial Services Authority offline. (9) Further provisions regarding applications for licensing, approval, and reporting electronically for the Company as referred to in paragraph (1) are determined by the Financial Services Authority.

Second Section
Administrative Sanctions

Article 106
(1) Violations of the provisions as referred to in Article 105 paragraph (3), paragraph (4), and/or paragraph (6) are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities, for part or all of the business activities; and/or
c. revocation of business license.
(2) The procedures and methods for imposing administrative sanctions are carried out in accordance with the provisions of the Financial Services Authority Regulation regarding procedures and methods for imposing administrative sanctions in the insurance sector.

Third Section
Re-evaluation of Key Parties

Article 107
In addition to imposing administrative sanctions as referred to in Article 106 paragraph (1), the Financial Services Authority has the authority to conduct re-evaluation of the Company's key parties.

CHAPTER XV
OTHER PROVISIONS

Article 108
The Financial Services Authority may, based on certain considerations, provide approvals or policies that differ from this Financial Services Authority Regulation.

CHAPTER XVI
TRANSITIONAL PROVISIONS

Article 109
At the time this Financial Services Authority Regulation comes into force, applications for approval that have been received and have not yet obtained approval or rejection from the Financial Services Authority are processed in accordance with Financial Services Authority Regulation Number 68/POJK.05/2016 concerning Business Licensing and Institutional Aspects of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessing Companies.

Article 110
For Companies that have obtained business licenses at the time this Financial Services Authority Regulation is promulgated, the obligation to adjust the use of the Company's name as referred to in Article 11 paragraph (1) must be completed within a maximum of 2 (two) years since this Financial Services Authority Regulation is promulgated.

Article 111
The obligation to designate one of the shareholders as a PSP as referred to in Article 21 paragraph (4) only becomes effective 1 (one) year since this Financial Services Authority Regulation comes into force.

Article 112
The obligation to adjust dual roles for Companies that have members of the Board of Directors and/or members of the Board of Commissioners who still hold dual roles as referred to in Article 26 and Article 27 must be completed within a maximum of 1 (one) year since this Financial Services Authority Regulation comes into force.

Article 113
(1) Violations of Financial Services Authority Regulation Number 68/POJK.05/2016 concerning Business Licensing and Institutional Aspects of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessing Companies (State Gazette Number 301, Supplement to the State Gazette Number 5991), which are discovered at the time this Financial Services Authority Regulation comes into force, are subject to sanctions based on the provisions in Financial Services Authority Regulation Number 68/POJK.05/2016 concerning Business Licensing and Institutional Aspects of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessing Companies (State Gazette Number 301, Supplement to the State Gazette Number 5991). (2) Companies subject to administrative sanctions based on Financial Services Authority Regulation Number 68/POJK.05/2016 concerning Business Licensing and Institutional Aspects of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessing Companies (State Gazette Number 301, Supplement to the State Gazette Number 5991) and have not yet corrected the violations are subject to further sanctions based on the provisions in Financial Services Authority Regulation Number 68/POJK.05/2016 concerning Business Licensing and Institutional Aspects of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessing Companies (State Gazette Number 301, Supplement to the State Gazette Number 5991). (3) The application and imposition of additional administrative sanctions in the form of administrative fines for violations of the provisions as referred to in Article 19 paragraph (2), Article 34 paragraph (2), paragraph (3), Article 48 paragraph (2), Article 60 paragraph (2), Article 66 paragraph (2), Article 77 paragraph (2), paragraph (3), Article 82 paragraph (2), Article 94 paragraph (2), paragraph (3), and/or Article 103 paragraph (2), paragraph (3) apply 6 (six) months since this Financial Services Authority Regulation is promulgated.

Article 114
(1) Violations of provisions regarding dual roles of members of the Board of Directors, Board of Commissioners, and/or DPS as referred to in Article 12 paragraph (1), paragraph (2), Article 23, Article 33, and/or Article 41 paragraph (1), paragraph (2) of Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 306, Supplement to the State Gazette of the Republic of Indonesia Number 5996) as amended by Financial Services Authority Regulation Number 43/POJK.05/2019 concerning Amendment to Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2019 Number 271, Supplement to the State Gazette of the Republic of Indonesia Number 6450), which are discovered at the time this Financial Services Authority Regulation comes into force, are subject to sanctions based on the provisions in Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 306, Supplement to the State Gazette of the Republic of Indonesia Number 5996) as amended by Financial Services Authority Regulation Number 43/POJK.05/2019 concerning Amendment to Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2019 Number 271, Supplement to the State Gazette of the Republic of Indonesia Number 6450). (2) Companies subject to administrative sanctions based on Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 306, Supplement to the State Gazette of the Republic of Indonesia Number 5996) as amended by Financial Services Authority Regulation Number 43/POJK.05/2019 concerning Amendment to Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2019 Number 271, Supplement to the State Gazette of the Republic of Indonesia Number 6450) and have not yet corrected the violations are subject to further administrative sanctions in accordance with the provisions based on Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 306, Supplement to the State Gazette of the Republic of Indonesia Number 5996) as amended by Financial Services Authority Regulation Number 43/POJK.05/2019 concerning Amendment to Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the
Republic of Indonesia Year 2019 Number 271, Supplement to the State Gazette of the Republic of Indonesia Number 6450).

CHAPTER XVII
CLOSING PROVISIONS

Article 115
At the time this Financial Services Authority Regulation comes into force:
a. Financial Services Authority Regulation Number 68/POJK.05/2016 concerning Business Licensing and Institutional Aspects of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessing Companies (State Gazette of the Republic of Indonesia Year 2016 Number 301, Supplement to the State Gazette of the Republic of Indonesia Number 5991); and b. provisions regarding dual roles of members of the Board of Directors and members of the Board of Commissioners as regulated in Article 12 paragraph (1), paragraph (2), Article 23, Article 33, and/or Article 41 paragraph (1), paragraph (2) of Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 306, Supplement to the State Gazette of the Republic of Indonesia Number 5996) as amended by Financial Services Authority Regulation Number 43/POJK.05/2019 concerning Amendment to Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2019 Number 271, Supplement to the State Gazette of the Republic of Indonesia Number 6450), are revoked and declared invalid.

Article 116
Provisions regarding Minimum Equity as regulated in Article 13 of Financial Services Authority Regulation Number 70/POJK.05/2016 concerning the Conduct of Business of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessing Companies (State Gazette of the Republic of Indonesia Year 2016 Number 303, Supplement to the State Gazette of the Republic of Indonesia Number 5993) as amended by Financial Services Authority Regulation Number 28 of 2022 concerning Amendment to Financial Services Authority Regulation Number 70/POJK.05/2016 concerning the Conduct of Business of Insurance Brokerage Companies, Reinsurance Brokerage Companies (State Gazette of the Republic of Indonesia Year 2022 Number 36/OJK, Supplement to the State Gazette of the Republic of Indonesia Number 27/OJK), are revoked and declared invalid as of December 31, 2026.

Article 117
This Financial Services Authority Regulation comes into force on the date of promulgation.

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

To ensure that everyone knows it, orders the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

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

Promulgated in Jakarta on December 22, 2023
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2023 NUMBER 42/OJK signed

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 24 OF 2023
CONCERNING
BUSINESS LICENSING AND INSTITUTIONAL ASPECTS
OF INSURANCE BROKERAGE COMPANIES, REINSURANCE BROKERAGE COMPANIES, AND INSURANCE LOSS ASSESSING COMPANIES

I. GENERAL
That with the increase in business volume, the increasing utilization of insurance services by the public, and the increasingly varied insurance service offerings in line with the development of public needs, it is necessary to refine regulations regarding business licensing and institutional aspects of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessing Companies so as to create a healthier, reliable, trustworthy, and generally competitive insurance industry.

Furthermore, in creating competitiveness and dynamic business development, strong barriers are needed for prospective insurance business actors who wish to enter the insurance industry.

Currently, there is Financial Services Authority Regulation Number 68/POJK.05/2016 concerning Business Licensing and Institutional Aspects of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessing Companies; however, the aforementioned Financial Services Authority Regulation needs to be refined in order to achieve the intended goals.

The refinements made include, among others, reporting mechanisms and identification of Foreign Ownership, increased Paid-up Capital requirements at establishment, application mechanisms for licensing, approval, and reporting by Companies, organizational structure, foreign workers, Experts, insurance brokers, reinsurance brokers, and insurance loss assessors, offices outside the head office, insurance agents, ownership changes, reporting, Mergers, and Consolidations, e-licensing, and sanctions.

II. ARTICLE BY ARTICLE

Article 1
Clear enough.

Article 2
Clear enough.

Article 3
Paragraph (1)
Letter a
Clear enough.

Letter b
The need for criteria of similar types and similar business fields is intended to facilitate the transfer of knowledge and technology, thereby resulting in the transfer of knowledge and technology from all aspects of the conduct of insurance brokerage, reinsurance brokerage, and insurance loss assessing business from Foreign Legal Entities to Companies in Indonesia. This transfer of knowledge and technology is not only in the form of expertise in conducting Insurance Brokerage Business, Reinsurance Brokerage Business, and Insurance Loss Assessing Business with specific fields or business principles, but is interpreted broadly, namely including the conduct of Insurance Brokerage Business, Reinsurance Brokerage Business, Insurance Loss Assessing Business, corporate governance, and risk management.

Paragraph (2)
Clear enough.

Article 4
Paragraph (1)
Transactions on the stock exchange are carried out in accordance with provisions of legislation in the capital market sector, including Financial Services Authority Regulations regarding the conduct of activities in the capital market sector and Financial Services Authority Regulations regarding effect transactions.

Paragraph (2)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Number 1
Clear enough.

Number 2
The participation of an Indonesian legal entity in the company through transactions on the stock exchange takes into account the ownership percentage calculated in the provisions of legislation in the capital market sector. For example, if the ownership percentage in the capital market only calculates ownership of shares above 5% (five percent), then that basis is used in calculating foreign ownership in the capital market.

Article 5
Paragraph (1)
Letter a
What is meant by "companies having similar businesses" is brokerage companies with other brokerage companies, or insurance loss assessing companies with other insurance loss assessing companies.

What is meant by "similar insurance business fields" is insurance brokerage companies with other insurance brokerage companies or reinsurance brokerage companies with other reinsurance brokerage companies or insurance loss assessing companies with other insurance loss assessing companies.

Letter b
The total direct participation in the Company is the participation of Foreign Legal Entities viewed from the Company's paid-up capital.

Example: If there is ownership of the Company by an Indonesian legal entity of 50% (fifty percent), and then there is ownership of a Foreign Legal Entity in the aforementioned Indonesian legal entity of 50% (fifty percent), it can be interpreted that the Foreign Legal Entity has an ownership proportion of 25% (twenty-five percent) in the Company. Therefore, the component of Equity calculation by the Foreign Legal Entity is only 25% (twenty-five percent) of the total direct participation in the aforementioned Indonesian legal entity.

(in thousands of rupiah)

Company	Direct Shareholder	Minimum Equity	Foreign Legal Entity
PT A	Paid-up Capital	200,000
	Indonesian Legal Entity A	50%	100,000
	Foreign Legal Entity B	50%	100,000	500,000

Company	Direct Shareholder	Indirect Shareholder	Minimum Equity	Foreign Legal Entity
PT A	Paid-up Capital	200,000
	Indonesian Legal Entity A	50%	100,000	Foreign Legal Entity C
				50%	250,000
				Indonesian Citizen
				50%
				Indonesian Legal Entity B
				50%	100,000

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Article 6
Paragraph (1)
Letter a
Clear enough.

Letter b
What is meant by "Foreign Ownership in the Company by foreign citizens indirectly" is the ownership of shares by foreign citizens over an Indonesian legal entity that owns the Company at the second layer and onwards.

Letter c
Clear enough.

Paragraph (2)
Letter a
Clear enough.

Letter b
Number 1
Calculation example:

Company Name	First Degree	Second Degree	Third Degree	Next Degrees
PT Insurance X	XYX Inc. – Foreign Legal Entity, 80%	PT YYY – Indonesian Legal Entity, 10%	XX Corp. – Foreign Legal Entity, 60%	Ms. Alya – Indonesian Citizen, 60%
				VW Corp. – Foreign Legal Entity, 40%
				Hamzah – Indonesian Citizen, 40%
				PT YXY – Indonesian Legal Entity, 10%
				PT ZYZ – Indonesian Legal Entity, 70%
				XYZ Corp. – Foreign Legal Entity, 55%
				PT ZZW – Indonesian Legal Entity, 45%
				etc.
				VV Corp. – Foreign Legal Entity, 30%
				PT YYX – Indonesian Legal Entity, 70%
				Amir – Indonesian Citizen, 60%
				Yanuar – Indonesian Citizen I, 40%
				Tasya – Foreign Citizen, 30%

a. Foreign Ownership:
= XYX Inc. + (PT YYY x XX Corp. x VW Corp) + (PT YXY x PT ZYZ x XYZ Corp) + (PT YXY x VV Corp x Tasya) = 80% + (10% x 60% x 40%) + (10% x 70% x 55%) + (10% x 30% x 30%).
= 87.15%

b. Local Ownership:
= (PT YYY x XX Corp x Alya) + (PT YYY x Hamzah) + (PT YXY x PT ZYZ x PT ZZW) + (PT YXY x VV Corp. x PT YYX x Amir) + (PT YXY x VV Corp x PT YYX x Yanuar).
= (10% x 60% x 60%) + (10% x 40%) + (10% x 70% x 45%) + (10% x 30% x 70% x 60%) + (10% x 30% x 70% x 40%).
= 12.85%

Number 2
Clear enough.

Article 7
Clear enough.

Article 8
Paragraph (1)
The total direct participation in the Company is calculated based on the value of shares obtained by the Indonesian legal entity from the Company.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

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

Paragraph (2)
Clear enough.

Article 10
Paragraph (1)
Letter a
The term "loan" refers to all forms of providing facilities for the provision of money or claims that can be equated with it based on a loan agreement between the lender and the other party, including those organized based on Sharia principles. The prohibition on the use of loan funds for paid-up capital also applies to loans originating from shareholders, including ultimate shareholders, in order to support the going concern and financial health of the Company. Letter b The definition of money laundering refers to regulations concerning the implementation of anti-money laundering programs, counter-terrorism financing, and counter-proliferation financing of weapons of mass destruction in the financial services sector. Counter-terrorism financing and counter-proliferation financing of weapons of mass destruction in the financial services sector apply up to the ultimate shareholder. Paragraph (2) Letter a Clearly stated. Letter b Clearly stated. Letter c Control is measured, among other things, by the ability to appoint the Board of Directors and Board of Commissioners of the legal entity.

Article 11
Paragraph (1)
Letter a
This provision is intended to ensure that the Company does not use a name that implies that the Company's name is not an Insurance Brokerage Company, Reinsurance Brokerage Company, or Insurance Loss Adjusting Company. Examples:
PT X Insurance Broker.
Letter b
PT Y Reinsurance Broker.
Letter c
PT Z Adjuster.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
The Company's Articles of Association, which have been approved, including amendments to the Articles of Association that have been approved by the competent authority.

Paragraph (5)
The term "other Company documents" refers to documents used by the Company in conducting business activities.
This obligation includes the use of the Company's systems or infrastructure, both electronically and non-electronically.
Paragraph (6)
Clearly stated.
Paragraph (7)
Compliance with written instructions follows the time limits specified in the Financial Services Authority letter regarding written instructions.

Article 12
Clearly stated.

Article 13
Clearly stated.

Article 14
Clearly stated.

Article 15
Re-evaluation of principal parties is carried out in accordance with the Financial Services Authority Regulation regarding re-evaluation for principal parties of financial services institutions.

Article 16
Clearly stated.

Article 17
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
The term "analysis of document completeness" refers to the conformity of documents with the requirements stipulated in legislation.
Letter b
Verification of funding sources and capital deposits is carried out, among other things, by verifying the receipt of capital deposits by the Company and verifying financial transactions related to capital deposits originating from transactions within the business group (intra-group transaction). Letter c Clearly stated. Letter d Clearly stated. Letter e Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated.

Paragraph (5)
Clearly stated.
Paragraph (6)
The term "cancelling the business license application" refers to a business license application cancelled by the applicant or an application deemed cancelled due to the expiration of the time limit for submitting responses to requests for document completeness. Paragraph (7) Clearly stated. Paragraph (8) Clearly stated.

Article 18
Paragraph (1)
Business activities are conducted on the date of signing the insurance placement proof.
Paragraph (2)
The term "operational income" refers to the realization of operational income from the previous year.
Operational income for Brokerage Companies is brokerage service income, consulting service income, and claim handling service income.
Operational income for Insurance Loss Adjusting Companies is claim handling service income and consulting service income.
For Companies that have just received a business license, the Company's brokerage service income is equal to the projected brokerage service income of the Company in the first year. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated.

Article 19
Clearly stated.

Article 20
Clearly stated.

Article 21
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Letter a
The calculation of cumulative share ownership among shareholders based on the results of ownership relationships is used as the basis for designating the PSP representing shareholders cumulatively. Ownership relationships occur if between shareholders:
a. individuals and legal entities; or b. legal entities and legal entities, there is an ownership connection to that legal entity with an ownership amount that at least meets the threshold as a PSP. Tracing ownership relationships is carried out up to the ultimate shareholder. Example:
Mr. A owns shares in Company X amounting to 10% (ten percent) of Company X's capital.
PT B, a legal entity that is not a financial institution, owns shares in Company X amounting to 25% (twenty-five percent) of Company X's capital.
Mr. A owns PT B amounting to 30% (thirty percent) of PT B's capital, so between Mr. A and PT B there is a connection due to ownership relationships.
Letter b
The term "family relationships up to the second degree" refers to:
a. biological/step/adopted parents; b. biological/step/adopted siblings along with their spouses;
c. biological/step/adopted children;
d. biological/step/adopted grandparents; e. biological/step/adopted grandchildren; f. biological/step/adopted siblings of parents along with their spouses; g. spouses; h. in-laws;
i. siblings-in-law;
j. spouses of biological/step/adopted children; k. grandparents of spouses;
l. spouses of biological/step/adopted grandchildren; and
m. biological/step/adopted siblings of spouses along with their spouses.
Paragraph (4)
Example of designating one shareholder based on the results of ownership relationships and/or family relationships up to the second degree as a PSP:

1. Shareholders of PT Broker X consist of:
   a. PT A amounting to 20%. b. PT B amounting to 15%.
   c. PT C amounting to 30%.
   d. Budi amounting to 15%. e. Wati amounting to 10%. f. Andi amounting to 10%.
2. Controlling Shareholders (PSP) of PT Broker X are as follows:
   a. PT C because it has direct share ownership of more than 25%, namely 30%. b. PT A because it has cumulative share ownership based on ownership relationships amounting to 35% (directly 20% and indirectly through PT B amounting to 15%).
   c. Budi, Wati, or Andi because they have cumulative share ownership based on family relationships amounting to 35% (15% + 10% + 10%).
   Paragraph (5)
   Clearly stated.
   Paragraph (6)
   Clearly stated.

Article 22
Paragraph (1)
Letter a
Service functions include, among others, consumer protection education functions, complaint functions, and financial literacy and inclusion functions.
Letter b
Technical brokerage functions include, among others, consultation functions, marketing functions, risk analysis and mitigation functions, insurance placement functions, and claim settlement functions. Letter c Clearly stated. Letter d Clearly stated. Letter e Clearly stated. Paragraph (2) Letter a Service functions include, among others, complaint functions. Letter b Technical reinsurance brokerage functions include, among others, consultation functions, marketing functions, risk analysis and mitigation functions, reinsurance placement functions, and claim settlement functions. Letter c Clearly stated. Letter d Clearly stated. Paragraph (3) Letter a Service functions include, among others, complaint functions. Letter b Technical insurance loss adjusting functions include, among others, survey execution functions, loss assessment functions, and functions for preparing calculation/assessment reports on losses. Letter c Clearly stated. Letter d Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) Good internal control is indicated, among other things, by the division of duties that allows mutual supervision (cross-check) between functions and hierarchical review of work. Paragraph (7) Clearly stated. Paragraph (8) Clearly stated.

Article 23
Clearly stated.

Article 24
Clearly stated.

Article 25
Clearly stated.

Article 26
Paragraph (1)
The term "insurance company" refers to the Company, insurance companies, Sharia insurance companies, reinsurance companies, and Sharia reinsurance companies.
The term "other companies" refers to companies other than insurance companies.
Paragraph (2)
The term "subsidiary company" refers to a company whose capital is partially or wholly owned by the Company or where the Company makes an investment in another business entity at the first level. The purpose of regulating the prohibition of concurrent positions for the Main Director of the Company is that the Main Director of the Company is expected to dedicate their energy, thoughts, and time fully to the Company, making it impossible to hold concurrent jobs or positions in other companies, including subsidiaries.

Article 27
Paragraph (1)
Examples of the prohibition of concurrent positions include members of the Board of Commissioners of an Insurance Brokerage Company cannot hold concurrent positions as Commissioners or members of the Board of Directors in other Insurance Brokerage Companies. Paragraph (2) Permitted concurrent positions are that Members of the Board of Commissioners of Insurance Brokerage Company XYZ can only hold a maximum of 3 (three) concurrent positions, for example:

1. as a member of the Board of Commissioners of an Insurance Company;
2. as a member of the Board of Commissioners of a Reinsurance Brokerage Company; and
3. as a member of the Sharia Supervisory Board of an Insurance Company.

Article 28
Paragraph (1)
Regulations regarding LSP refer to Financial Services Authority regulations regarding the management of professional certification institutions in the financial services sector. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated.

Article 29
Clearly stated.

Article 30
Clearly stated.

Article 31
Clearly stated.

Article 32
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
The term "report on the realization of the business plan" refers to the Financial Services Authority Regulation regarding business plans of non-bank financial services institutions.

Article 33
Clearly stated.

Article 34
Clearly stated.

Article 35
Clearly stated.

Article 36
Paragraph (1)
The term "full-time" refers to an Insurance Broker who binds themselves to one Insurance Brokerage Company and does not work for other companies.
Paragraph (2)
Clearly stated.

Article 37
Clearly stated.

Article 38
Clearly stated.

Article 39
Clearly stated.

Article 40
Letter a
No longer being a member of the insurance broker association includes, among others, due to death and the revocation of their professional title by the Insurance Broker professional association that issued the title. Letter b Clearly stated. Letter c Clearly stated. Letter d Clearly stated.

Article 41
Clearly stated.

Article 42
Paragraph (1)
See the explanation of Article 36 Paragraph (1).
Paragraph (2)
Clearly stated.

Article 43
Clearly stated.

Article 44
Clearly stated.

Article 45
Clearly stated.

Article 46
Letter a
No longer being a member of the Reinsurance Broker Association includes, among others, due to death and the revocation of their professional title by the Reinsurance Broker Association that issued the title. Letter b Clearly stated. Letter c Clearly stated. Letter d Clearly stated.

Article 47
Clearly stated.

Article 48
Clearly stated.

Article 49
Clearly stated.

Article 50
Paragraph (1)
See the explanation of Article 36 Paragraph (1).
Paragraph (2)
Clearly stated.

Article 51
Clearly stated.

Article 52
The prohibition on appointing Experts who hold concurrent positions as members of the Board of Directors, Board of Commissioners, Sharia Supervisory Board, or employees of the same company or other companies is intended so that Experts can provide assessment results and professional judgment in accordance with their expertise without being influenced by responsibilities in the concurrent position.

Article 53
Clearly stated.

Article 54
Clearly stated.

Article 55
Clearly stated.

Article 56
Clearly stated.

Article 57
Paragraph (1)
See the explanation of Article 36 Paragraph (1).
Paragraph (2)
Clearly stated.

Article 58
Paragraph (1)
The term "appointment and/or dismissal of Experts" includes the appointment and/or dismissal of Experts within the Company.
Example:
Insurance Company A appoints Expert XYZ at an Office Outside the Head Office (e.g., in Bandung) while simultaneously dismissing Expert FGH from the Office Outside the Head Office (in Bandung) and appointing Expert FGH at the head office, then Insurance Company A must report the appointment of Expert XYZ and Expert FGH, and report the dismissal of Expert FGH from the Office Outside the Head Office (Bandung). Paragraph (2) Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated.

Article 59
Clearly stated.

Article 60
Clearly stated.

Article 61
Clearly stated.

Article 62
Paragraph (1)
Types of offices outside the head office are branch offices, representative offices, marketing offices, or operational offices.
Paragraph (2)
Clearly stated.

Article 63
Clearly stated.

Article 64
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
The term "paying attention to the interests of policyholders, insured parties, or participants" refers to the settlement of rights and obligations in accordance with the contents of the policy agreement.

Article 65
Clearly stated.

Article 66
Clearly stated.

Article 67
Clearly stated.

Article 68
Clearly stated.

Article 69
Clearly stated.

Article 70
Clearly stated.

Article 71
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Paragraph (6)
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
Clearly stated.
Letter d
The term "bonus shares" refers to shares distributed free of charge to shareholders based on the number of shares owned. Bonus shares consist of two types, namely:
a. those that are stock dividends, originating from the capitalization of retained earnings balances; and b. those that are not stock dividends, originating from the capitalization of:

1. share premium; and/or
2. other Equity elements.
   Paragraph (7)
   Specific conditions include, among others, for the rehabilitation of the Company. Additional paid-up capital in other forms, for example, in the form of land and buildings.

Article 72
Paragraph (1)
The Company's obligation to adjust Paid-up Capital only applies when a Takeover occurs, thus when there is a change in ownership that does not result in a Takeover, no adjustment to the Paid-up Capital regulations is required. Paragraph (2) Letter a The term "change of ownership through Takeover that is the result of inheritance" refers to the emergence of a new shareholder or the transfer of Control over the Company as a result of the transfer of inheritance rights from the previous shareholder or Controlling Party. Letter b Clearly stated. Letter c The term "restructuring" refers to the transfer of Company ownership or changes in relationships between entities within a group or common control, usually being strategic for the business group. Example:
PT X Insurance Company is owned by PT ABC.
Based on the business strategy to be implemented by the shareholders of PT ABC, PT ABC will be directed as a parent company overseeing subsidiaries in fields other than financial services. Meanwhile, subsidiaries in the financial services field will be overseen by PT DEF, which is a sister company of PT ABC. Thus, there is a change in ownership of PT X Insurance Company caused by restructuring within the Company group. Letter d The term "change of ownership based on Financial Services Authority assessment" includes, among others, in the context of Company rehabilitation. Paragraph (3) Clearly stated.

Article 73
Clearly stated.

Article 74
Clearly stated.

Article 75
Clearly stated.

Article 76
Clearly stated.

Article 77
Clearly stated.

Article 78
Clearly stated.

Article 79
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
The change of the Company's name can be processed as long as the change in ownership as a result of a Merger or Consolidation has been approved by the Financial Services Authority. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) Clearly stated.

Article 80
Clearly stated.

Article 81
Clearly stated.

Article 82
Clearly stated.

Article 83
Clearly stated.

Article 84
Clearly stated.

Article 85
Clearly stated.

Article 86
Clearly stated.

Article 87
Clearly stated.

Article 88
Clearly stated.

Article 89
Clearly stated.

Article 90
Clearly stated.

Article 91
Clearly stated.

Article 92
Clearly stated.

Article 93
Clearly stated.

Article 94
Clearly stated.

Article 95
Clearly stated.

Article 96
Clearly stated.

Article 97
Clearly stated.

Article 98
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
Clearly stated.
Letter b
Description of the Company's conditions includes, among others:

1. data regarding in-force policies intermediated by the Insurance Brokerage Company, which must at least include the name of the policyholder, the name of the insurance, the insured object, and others;
2. data regarding in-force reinsurance agreements intermediated by the Reinsurance Brokerage Company, which must at least include the name of the ceding company, the name of the reinsurer, the reinsured object, and others; and
3. Plan for the transfer of intermediary services for policies or reinsurance agreements to other Companies.
   Letter c
   Clearly stated.
   Letter d
   Clearly stated.
   Paragraph (3)
   Clearly stated.

Article 99
Clearly stated.

Article 100
Clearly stated.

Article 101
Clearly stated.

Article 102
Clearly stated.

Article 103
Clearly stated.

Article 104
Clearly stated.

Article 105
Clearly stated.

Article 106
Clearly stated.

Article 107
Clearly stated.

Article 108
Certain considerations related to the analysis and results of Financial Services Authority supervision for the protection of policyholders, insured parties, and/or participants while still paying attention to the principle of prudence.

Article 109
Clearly stated.

Article 110
Clearly stated.

Article 111
Clearly stated.

Article 112
Clearly stated.

Article 113
Clearly stated.

Article 114
Clearly stated.

Article 115
Clearly stated.

Article 116
Clearly stated.

Article 117
Clearly stated.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 64/OJK

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 24 YEAR 2023
CONCERNING
BUSINESS LICENSING AND INSTITUTIONAL ASPECTS
OF INSURANCE BROKERAGE COMPANIES,
REINSURANCE BROKERAGE COMPANIES, AND
INSURANCE LOSS ADJUSTING COMPANIES

I. LIST OF BUSINESS LICENSE APPLICATION DOCUMENT REQUIREMENTS FOR COMPANIES

NO. DOCUMENT LIST DESCRIPTION

1. Copy of the deed of establishment of the legal entity that has been approved by the competent authority, which must at least contain:
   a. name and domicile; b. purpose and objectives as well as business activities;
   c. Paid-up Capital;
   d. ownership; and e. authority, responsibility, and term of office of Board of Directors members, and Board of Commissioners members; The purpose and objective of establishing the Company is only to carry out one type of insurance business, namely to carry out Insurance Brokerage Business, Reinsurance Brokerage Business, or Insurance Loss Adjusting Business as regulated in the Insurance Law. Meets capital requirements as stipulated in applicable legislation. The authority and responsibility of Board of Directors and Board of Commissioners members refer to Financial Services Authority Regulations regarding good corporate governance for insurance companies.
2. Copy of the last amendment to the Articles of Association (if any) accompanied by copies of approvals and/or letters of receipt of notification from the competent authority;
3. Organizational structure established in a Board of Directors Decision Letter complete with descriptions of duties, authorities, responsibilities, and work procedures which at least include functions:
4. For Insurance Brokerage Companies and Reinsurance Brokerage Companies, namely financial management functions and service functions; and
5. For Insurance Loss Adjusting Companies, namely technical loss assessment functions;
6. Copy of proof of Paid-up Capital settlement in the form of:
   a. proof of cash deposits from shareholders; b. Company bank statements from the date of capital deposit from shareholders until the date of business license application; and
   c. copy of proof of Minimum Paid-up Capital placement in the form of time deposits and/or current accounts in the name of the respective Company at one of the general banks or Sharia general banks in Indonesia,
   which is legalized by the receiving bank of the deposit which is still valid during the business license application process;
7. Ownership list, with the provisions:
   a. For Companies in the form of limited liability companies, the ownership list document consists of:

1. Shareholders including details of each share ownership up to the last shareholder and/or beneficial owner; and
2. List of other companies owned by shareholders or the entire business group structure related to the Company;
   b. For Companies in the form of cooperative legal entities, the ownership list document consists of a list of members including the amount of basic savings and mandatory savings;

6. Data of shareholders or Controlling Parties:
   a. individuals, accompanied by:

1. copy of identification in the form of an identity card (KTP) or passport that is still valid;
2. copy of the taxpayer identification number (NPWP);
3. copy of the tax return letter (SPT) for the last 2 (two) years and other documents showing the financial capacity and funding sources of prospective individual shareholders;
4. curriculum vitae complete with the latest 4 x 6 cm color passport photo; and
5. stamped declaration letter from the concerned party stating:
   a) capital deposits do not originate from loans; b) capital deposits do not originate from money laundering and financial crime activities; c) do not have non-performing credits and/or financing; d) are not included as Parties prohibited from becoming shareholders or Parties who manage, supervise, and/or have significant influence on financial services institutions; e) have never been convicted for committing criminal offenses in the field of financial services business and/or the economy based on court decisions that have had permanent legal force in the last 5 (five) years; f) have never been convicted for committing criminal offenses based on court decisions that have had permanent legal force in the last 5 (five) years; g) have never been declared bankrupt or guilty causing a company to be declared bankrupt based on court decisions that have had permanent legal force in the last 5 (five) years; and h) have never been controlling shareholders, members of the Board of Directors, members of the Board of Commissioners, Controlling Parties, or members of the DPS in financial services companies whose business licenses were revoked due to violations in the last 5 (five) years; b. legal entities, accompanied by:
6. copy of the deed of establishment of the legal entity, including the Articles of Association including its amendments (if any), accompanied by copies of approval, consent, and/or letters of receipt of notification from competent authorities;
7. annual financial reports audited by public accountants complete with non-consolidated financial reports and the last month's financial reports before capital deposit signed by the directors of the shareholder;
8. copy of the taxpayer identification number (NPWP) of the legal entity;
9. data of directors or equivalents of shareholders in the form of legal entities, including:
   a) copy of identification in the form of an identity card (KTP) or passport that is still valid; b) copy of the taxpayer identification number (NPWP); c) curriculum vitae complete with the latest 4 x 6 cm color passport photo; d) stamped declaration letter from the directors or equivalents of shareholders in the form of legal entities stating that:

1. funding sources for capital contributions do not originate from money laundering, terrorism financing, and other financial crimes;
2. funding sources for capital contributions do not originate from loans;

---

NO. DOCUMENT LIST DESCRIPTION
3. shareholders do not have non-performing loans and/or financing;
4. shareholders are not included as Parties prohibited from being shareholders or Parties that manage, supervise, and/or have significant influence on financial service institutions;
5. shareholders have never been convicted for committing criminal offenses in the field of financial service business and/or the economy based on a court decision that has permanent legal force within the last 5 (five) years;
6. shareholders have never been declared bankrupt or declared guilty causing a company to be declared bankrupt based on a court decision having permanent legal force within the last 5 (five) years; and
7. shareholders have never been controlling shareholders, members of the Board of Directors, members of the Board of Commissioners, Controllers, or members of the Supervisory Board (DPS) at financial service companies whose business licenses have been revoked due to violations within the last 5 (five) years; and
5) rating results from internationally recognized rating agencies, for shareholders in the form of foreign legal entities;
c. central government, accompanied by a copy of the government regulation regarding state capital participation in the Republic of Indonesia for the establishment of the Company; and

NO. DOCUMENT LIST DESCRIPTION d. local government, accompanied by a copy of the regional regulation regarding regional capital participation for the establishment of the Company;
7. Notarized statement letter from Shareholders, Directors, and Commissioners stating that they will always comply with applicable laws and regulations and practice healthy insurance business operations;
8. Notarized statement letter from the Director prohibiting holding concurrent positions in other companies except as members of the Board of Commissioners in 1 (one) other Insurance Company with a different business field;
9. Notarized statement letter from the Commissioner prohibiting holding concurrent positions as members of the Board of Commissioners, members of the Board of Directors, or members of the Supervisory Board (DPS) at an Insurance Company with the same business field;
10. List of Controllers along with information regarding the form of control;
11. Proof of employing Experts according to their business field in sufficient numbers to manage business activities;
12. Proof of employing Insurance Brokers for Insurance Brokerage Companies and Reinsurance Brokers for Reinsurance Brokerage Companies;
13. Notarized statement letter stating that Experts and Brokers do not hold concurrent positions in other companies;
14. Business plan for the first 3 (three) years at least containing:
a. Vision, mission, and business strategy of the Company; b. Management policies and plans, including:

1. business activity plans;
2. capital plans;
3. financing plans;
4. development and/or office network or distribution channel plans; and
5. organizational, human resource, and/or information technology development plans;
   c. Financial statement projections along with assumptions used;

NO. DOCUMENT LIST DESCRIPTION d. Projection of ratios and certain items; and e. Other information, including information that needs to be submitted because it affects business activities of the company, which is not mentioned in the scope of the Business Plan;
15. Copy of the Company's risk management guidelines;
16. Copy of agreements with third parties (if any) and policies for transferring part of the functions in business operations;
17. Administration system and data management infrastructure supporting the preparation and submission of reports to the Financial Services Authority;
18. Confirmation from the Financial Service Supervisory Authority in the country of origin of the Foreign Party, in case there is participation from a Foreign Legal Entity that has a Financial Service Supervisory Authority in its country of origin;
19. Proof of payment of licensing fees in the context of granting business licenses;
20. Supporting documents stating that the Company has human resources with competence in the field of Risk Management; and
21. Other documents in support of healthy business growth, including:
a. copy of the initial/opening financial position report of the Company; b. proof of operational readiness;
c. copy of guidelines for implementing anti-money laundering and counter-terrorism financing programs;
d. copy of guidelines for good corporate governance; e. copy of cooperation agreements between shareholders in the form of Foreign Legal Entities and Indonesian shareholders, for Companies with participation from Foreign Legal Entities, made in Indonesian language and at least containing:

1. capital composition and details of authority, at least containing provisions regarding voting rights, profit and loss distribution, and appointment of members of the Board of Directors and members of the Board of Commissioners of the Company; and
2. obligations of shareholders in the form of Foreign Legal Entities to formulate and implement education and training programs according to their field of expertise.

The meaning of proof of operational readiness includes:

1. list of fixed assets and inventory (if any);
2. data regarding office address supported by letters of confirmation from relevant parties at least stating the name of the Company;
3. photos of the exterior of the building and photos of the interior;
   and
4. room layout (lay-out).

NO. DOCUMENT LIST DESCRIPTION
II. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING THE IMPLEMENTATION OF BUSINESS ACTIVITIES FOR COMPANIES THAT HAVE RECEIVED BUSINESS LICENSES FROM THE FINANCIAL SERVICES AUTHORITY
NO. DOCUMENT LIST DESCRIPTION

1. Recap of insurance placements for Insurance Brokerage Companies, recap of reinsurance placements for Reinsurance Brokerage Companies, or recap of work orders for Insurance Loss Assessment Companies; and
2. Proof of insurance placement for Insurance Brokerage Companies, proof of reinsurance placement for Reinsurance Brokerage Companies, or proof of work orders for Insurance Loss Assessment Companies.

III. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING PLANS TO EMPLOY FOREIGN WORKERS
NO. DOCUMENT LIST DESCRIPTION

1. List of resumes of employed foreign workers, accompanied by copies of documents reflecting their field of expertise;
2. Plan for knowledge transfer programs by Foreign Workers to Indonesian workers in the form of annual education and training programs;
3. Plan for placement and job responsibilities of foreign workers;
4. Copies of documents reflecting the field of expertise of foreign workers; and
5. Statement that foreign workers have met the provisions of laws and regulations in the field of manpower.

IV. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING THE APPOINTMENT OF FOREIGN WORKERS
NO. DOCUMENT LIST DESCRIPTION

1. Copies of proof of appointment of foreign workers, evidenced by appointment letters from the Board of Directors;
2. Copies of residence permits;
3. Copies of permits to use foreign workers; and
4. Copies of the foreign worker's Tax Identification Number (NPWP).

V. LIST OF DOCUMENT REQUIREMENTS FOR REGISTRATION OF INSURANCE BROKERS
NO. DOCUMENT LIST DESCRIPTION

1. Copies of brokerage certificates for Insurance Brokers with the lowest level 2 (two) levels below the highest qualification from the Professional Certification Body or brokerage certificates from abroad after first obtaining recognition from the Professional Certification Body;
2. Proof of work experience in technical brokerage and/or technical insurance fields for at least 3 (three) years;
3. Proof of membership in the Insurance Broker Association in Indonesia;
4. Copies of identification cards (ID cards/KTP) or valid passports;
5. Copies of Tax Identification Numbers (NPWP);
6. Resumes completed with the latest 4 x 6 cm color photos;
7. Notarized statement letter from the concerned party stating:
   a. has never been convicted for committing criminal offenses in the field of financial service business and/or the economy based on court decisions that have permanent legal force within the last 5 (five) years; b. has never been convicted for committing criminal offenses based on court decisions that have permanent legal force within the last 5 (five) years;
   c. has never been declared bankrupt or guilty causing a company to be declared bankrupt based on court decisions that have permanent legal force within the last 5 (five) years; and
   d. has never been subjected to administrative sanctions in the form of cancellation of insurance broker registration statements within the last 5 (five) years; and
8. Statement letter of full-time employment.

VI. LIST OF DOCUMENT REQUIREMENTS FOR REGISTRATION OF REINSURANCE BROKERS
NO. DOCUMENT LIST DESCRIPTION

1. Copies of brokerage certificates for Reinsurance Brokers with the lowest level 2 (two) levels below the highest qualification from the Professional Certification Body or certificates from abroad after first obtaining recognition from the Professional Certification Body;
2. Proof of work experience in technical brokerage and/or technical insurance fields for at least 3 (three) years;
3. Proof of membership in the Reinsurance Broker Association in Indonesia;
4. Copies of identification cards (ID cards/KTP) or valid passports;
5. Copies of Tax Identification Numbers (NPWP);
6. Resumes completed with the latest 4 x 6 cm color photos;
7. Notarized statement letter from the concerned party stating:
   a. has never been convicted for committing criminal offenses in the field of financial service business and/or the economy based on court decisions that have permanent legal force within the last 5 (five) years; b. has never been convicted for committing criminal offenses based on court decisions that have permanent legal force within the last 5 (five) years;
   c. has never been declared bankrupt or guilty causing a company to be declared bankrupt based on court decisions that have permanent legal force within the last 5 (five) years; and
   d. has never been subjected to administrative sanctions in the form of cancellation of insurance broker registration statements within the last 5 (five) years; and
8. Statement letter of full-time employment.

VII. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING THE APPOINTMENT OF EXPERTS
NO. DOCUMENT LIST DESCRIPTION

1. Copies of expertise certificates from the Professional Certification Body;
2. Copies of identification cards (ID cards/KTP) or valid passports;
3. Resumes accompanied by the latest 4 x 6 cm color photos; and
4. Copies of letters of confirmation from the relevant professional association that they are not currently subject to sanctions.
   In the event that the reporting of the appointment of internal auditors of the Company is not an accounting profession, then the document requirements in this letter do not need to be attached.

VIII. LIST OF DOCUMENT REQUIREMENTS FOR APPLICATIONS FOR ASSOCIATION APPROVAL
NO. DOCUMENT LIST DESCRIPTION

1. Copies of the articles of association or house rules; and
2. Organizational structure.

IX. LIST OF DOCUMENT REQUIREMENTS FOR APPLICATIONS FOR APPROVAL OF OWNERSHIP CHANGES
NO. DOCUMENT LIST DESCRIPTION

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

1. Copies of identification cards (ID cards/KTP) or valid passports;
2. Copies of Tax Identification Numbers (NPWP);
3. Copies of tax notification letters (SPT) for the last 2 (two) years and other documents showing the financial capacity and source of funds of prospective individual shareholders;
4. Resumes completed with the latest 4 x 6 cm color photos; and
5. Notarized statement letter from the concerned party stating:
   a) Capital deposits do not come from loans; b) Capital deposits do not come from money laundering and financial crime activities; c) Do not have non-performing loans and/or financing; d) Are not included as Parties prohibited from being shareholders or parties that manage, supervise, and/or have significant influence on financial service institutions; e) Have never been convicted for committing criminal offenses in the field of financial service business and/or the economy based on court decisions that have permanent legal force within the last 5 (five) years;

f) Have never been convicted for committing criminal offenses based on court decisions that have permanent legal force within the last 5 (five) years; g) Have never been declared bankrupt or guilty causing a company to be declared bankrupt based on court decisions that have permanent legal force within the last 5 (five) years; and h) Have never been controlling shareholders, members of the Board of Directors, members of the Board of Commissioners, Controllers, or members of the Supervisory Board (DPS) at financial service companies whose business licenses have been revoked due to violations within the last 5 (five) years; b. Legal entities, accompanied by:

1. Copies of the deed of establishment of the legal entity, including articles of association and amendments (if any), along with copies of approval, consent, and/or notification acceptance letters from competent authorities;
2. Annual financial reports audited by public accountants, completed with non-consolidated financial reports and the last month's financial reports before capital deposit, signed by the directors of the shareholder;
3. Copies of the Tax Identification Number (NPWP) of the legal entity;
4. Data of directors or equivalents of shareholders in the form of legal entities, including:
   a) Copies of identification cards (ID cards/KTP) or valid passports; b) Copies of Tax Identification Numbers (NPWP); c) Resumes completed with the latest 4 x 6 cm color photos; and d) Notarized statement letter from directors or equivalents of shareholders in the form of legal entities stating that:

1. Sources of funds for capital participation do not come from money laundering, terrorism financing, and other financial crimes; and
2. Sources of funds for capital participation do not come from loans;
3. Shareholders do not have non-performing loans and/or financing;
4. Shareholders are not included as parties prohibited from being shareholders or parties that manage, supervise, and/or have significant influence on financial service institutions;
5. Shareholders have never been convicted for committing criminal offenses in the field of financial service business and/or the economy based on court decisions that have permanent legal force within the last 5 (five) years;
6. Shareholders have never been declared bankrupt or declared guilty causing a company to be declared bankrupt based on court decisions having permanent legal force within the last 5 (five) years; and
7. Shareholders have never been controlling shareholders, members of the Board of Directors, members of the Board of Commissioners, Controllers, or members of the Supervisory Board (DPS) at financial service companies whose business licenses have been revoked due to violations within the last 5 (five) years; and

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

3. Copies of audited financial reports (audited financial reports) of existing shareholders in the event of ownership changes, completed with non-consolidated financial reports and the last month's financial reports before capital deposit, signed by the directors of the shareholder;
4. Draft minutes of the General Meeting of Shareholders (RUPS) approving ownership changes in the event that ownership changes require RUPS approval;
5. Draft share sale and purchase deeds, in the event of share sales and purchases between shareholders or prospective new shareholders;
   The aforementioned draft share sale and purchase deeds must include information on the acquisition price of shares.
6. Draft deeds of transfer of share rights, in the event of transfer of share rights other than due to sales and purchases;
7. Copies of tax notification letters (SPT) for the last 2 (two) years before capital participation and other documents showing the financial capacity and source of funds of existing individual shareholders in the event of ownership changes resulting in new shareholders and/or new Controllers who are individuals;
8. Notarized statement letter from shareholders stating that:
9. Sources of funds for capital participation do not come from money laundering, terrorism financing, and other financial crimes; and
10. Sources of funds for capital participation do not come from loans, either directly or indirectly;
11. Copies of the Company's financial reports audited by public accountants before the addition of Paid-up Capital, in the event that ownership changes are caused by the addition of Paid-up Capital and will be carried out in the form of:
12. cash deposits;
13. conversion/transfer of retained earnings;
14. conversion/transfer of loans; and/or
15. bonus shares;
16. Copies of the Company's bank statements showing loan receipts, in the event that ownership changes are carried out in the form of conversion/transfer of loans;
17. Proof of capital deposits in the name of prospective shareholders placed in blocked current accounts or time deposits, at one of the general banks or Islamic general banks in Indonesia, legalized by the receiving bank;
    The meaning of the receiving bank is a bank that receives funds from prospective shareholders and/or existing shareholders and transfers or sends money to the receiving bank's account in the name of the Company.
18. Copies of cooperation agreements between shareholders in the form of Foreign Legal Entities and Indonesian shareholders for applications for approval of ownership changes with new shareholders in the form of Foreign Legal Entities, made in Indonesian language and at least containing:
    a. capital composition and details of authority, at least containing provisions regarding voting rights, profit and loss distribution, and appointment of members of the Board of Directors and members of the Board of Commissioners of the Company; and b. obligations of shareholders in the form of Foreign Legal Entities to formulate and implement education and training programs according to their field of expertise; and
19. Current business plan containing plans for ownership changes.

X. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING THE IMPLEMENTATION OF OWNERSHIP CHANGES
NO. DOCUMENT LIST DESCRIPTION

1. Copies of share sale and purchase deeds, in the event of share sales and purchases between shareholders or prospective new shareholders;
2. Copies of minutes of the General Meeting of Shareholders (RUPS) approving ownership changes, along with notification acceptance letters from competent authorities;
3. Copies of deeds of transfer of share rights, if there are transfers of share rights other than due to sales and purchases;
4. Copies of sale and purchase deeds, in the event of share sales and purchases between shareholders;
5. Proof of deposits of additional Paid-up Capital, in the event that additional Paid-up Capital is carried out in the form of cash deposits, consisting of:
   a. Copies of proof of transfer of current accounts or time deposits to the Company's account, legalized by the respective bank; b. Copies of the Company's bank statements showing transfers;
6. Copies of the Company's financial reports after the addition of paid-up capital signed by the Company's Directors, if ownership changes are accompanied by the addition of Paid-up Capital carried out in the form of:
   a. cash deposits; b. conversion/transfer of retained earnings;
   c. conversion/transfer of loans; and/or
   d. bonus shares.

XI. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING CHANGES IN COMPANY NAMES
NO. DOCUMENT LIST DESCRIPTION

1. Copies of amendments to the articles of association along with proof of approval from competent authorities for Companies in the form of limited liability companies; and
2. Tax Identification Number (NPWP) under the new name of the Company.

XII. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING CHANGES IN THE HEAD OFFICE LOCATION OF COMPANIES
NO. DOCUMENT LIST DESCRIPTION

1. Copies of amendments to the articles of association along with proof of approval from competent authorities for Companies in the form of limited liability companies; and
2. Proof of ownership or control of the new office building.

XIII. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING ADDITIONS TO PAID-UP CAPITAL OF COMPANIES
NO. DOCUMENT LIST DESCRIPTION

1. Copies of amendments to the articles of association along with proof of notification acceptance letters from competent authorities for Companies in the form of limited liability companies;
2. Proof of cash additions to Paid-up Capital, namely:
   a. copies of proof of capital deposits in the name of prospective shareholders placed in current accounts or time deposits, at one of the general banks or Islamic general banks in Indonesia, legalized by the receiving bank; or b. copies of the Company's bank statements showing transfers;
3. Copies of the Company's financial reports audited by public accountants before the addition of Paid-up Capital, in the event that ownership changes are caused by the addition of Paid-up Capital and will be carried out in the form of cash transfers, conversion/transfer of retained earnings, conversion/transfer of loans, and/or bonus shares, in the event that the Company issues new shares for Companies in the form of limited liability companies;
4. Statement letter from shareholders stating that:
   a. sources of funds for capital participation do not come from money laundering, terrorism financing, and other financial crimes; and b. sources of funds for capital participation do not come from loans;
5. Copies of tax notification letters (SPT) for the last 2 (two) years before capital participation and other documents showing the financial capacity and source of funds of individual shareholders;
6. Copies of financial reports of shareholders audited by public accountants and/or the latest financial reports, in the event that shareholders are in the form of legal entities;
7. List of capital before changes and after changes; and
8. List of share ownership adjustments containing the names of shareholders and total value of shares before changes and after changes.

XIV. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING CHANGES TO THE BOARD OF DIRECTORS AND BOARD OF COMMISSARIES OF THE COMPANY

NO.	DOCUMENT LIST	DESCRIPTION

1. | Copy of the minutes of the General Meeting of Shareholders (GMS) for companies established as limited liability companies (Perseroan Terbatas);
2. | Copy of the minutes of the members' meeting for companies established as cooperatives and joint ventures;
3. | Copy of the approval proof or notification receipt letter from the competent authority;
4. | Company organizational structure describing the structure, job descriptions, authorities, and responsibilities of the Board of Directors, along with the functions and/or operational units under the Board of Directors; and
5. | List of Board of Directors and/or Board of Commissioners members before and after the change, along with the number and date of the letter of approval for the assessment of competence and propriety.

XV. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING CHANGES TO SHAREHOLDER NAMES

NO.	DOCUMENT LIST	DESCRIPTION

1. | Copy of the amendment to the Articles of Association regarding shareholders, which includes the change of name of the shareholder, accompanied by proof of approval from the competent authority for shareholders established as limited liability companies, or equivalent proof; and
   The equivalent proof referred to in this regulation is in the case where the shareholder changing their name is a Foreign Legal Entity or an Indonesian Legal Entity other than a limited liability company and a cooperative.
2. | Deed or letter of name change of the shareholder from the relevant authority or equivalent proof.
   The deed or letter of name change applies to individual shareholders (Indonesian citizens or foreign citizens), which may include among others a deed of name change.

XVI. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING CHANGES TO CENTRAL OFFICE ADDRESS AND OFFICES OUTSIDE THE CENTRAL OFFICE

NO.	DOCUMENT LIST	DESCRIPTION

1. | Copy of proof of ownership or control of the new office building showing the name and address of the Company; and
2. | Photo of the exterior of the building and photos of the interior, as well as the room layout (lay-out).

XVII. LIST OF DOCUMENT REQUIREMENTS FOR APPLICATION FOR APPROVAL OF MERGER OR CONSOLIDATION PLAN

NO.	DOCUMENT LIST	DESCRIPTION

1. | Implementation plan for the Merger or Consolidation, which must contain at least:
2. implementation steps;
3. implementation period for the Merger and Consolidation;
4. notification plan to policyholders, insured parties, or participants, and other stakeholders;
5. method for settling the rights of shareholders who do not agree to the Merger or Consolidation of the Company; and
6. method for settling the status of employees of the Company to be merged or consolidated;
7. Draft minutes of the General Meeting of Shareholders (GMS) approving the Merger or Consolidation;
8. Draft deed of Merger or Consolidation;
9. Plan for the share ownership list of the resulting Company from the Merger or Consolidation;
10. List of shareholders accompanied by:

1. details of the size of each share ownership up to the ultimate shareholder and/or beneficial owner; and
2. list of other companies owned by the shareholders of the resulting Company from the Merger or Consolidation.

6. The latest audited financial statements of the Company conducting the Merger or Consolidation;
7. The latest monthly financial report of the Company to be merged or consolidated;
8. Proforma financial data report resulting from the Merger or Consolidation examined by a public accountant;
   Proforma financial data of the Company refers to the financial position report, income statement and other comprehensive income, statement of changes in equity, and financial ratios of the Company.
9. Business plan for the first 3 (three) years of the resulting Company from the Merger or Consolidation; and
10. Organizational structure of the resulting Company from the Merger or Consolidation.

XVIII. LIST OF DOCUMENT REQUIREMENTS FOR REPORTING THE IMPLEMENTATION OF A GMS APPROVING MERGER OR CONSOLIDATION

NO.	DOCUMENT LIST	DESCRIPTION

1. | Copy of the GMS minutes approving the Merger or Consolidation;
2. | Copy of the Merger or Consolidation deed;
3. | Document stating that the Company merging or consolidating has no tax debts from the competent authority; and
4. | List of Experts and foreign workers to be employed by the resulting Company from the Merger or Consolidation.

This copy corresponds to the original
Director of Law 1
Legal Department
Mufli Asmawidjaja

XIX. LIST OF DOCUMENT REQUIREMENTS FOR APPLICATION FOR APPROVAL OF BUSINESS CESSATION PLAN

NO.	DOCUMENT LIST	DESCRIPTION

1. | Original copy of the decision regarding the issuance of the business license of the Company, or if the original copy of the decision is lost, it must be accompanied by a copy of the decision regarding the issuance of the business license that has been legalized and a stamped letter of statement from the Board of Directors that the original copy of the decision is lost;
2. | Copy of the GMS decision regarding approval of the plan to terminate the business activities of the Company;
3. | The latest financial statements of the Company;
4. | Proof of tax settlement and other obligations to the state; and
5. | Proof of settlement of levies by the Financial Services Authority and outstanding administrative fines.

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

signed signed