Financial Services Authority Regulation Number 25 of 2022 Regarding the Supervision of the Management of Social Insurance Programs for Members of the Indonesian National Armed Forces, Members of the Indonesian National Police, and Civil Servants in the Environment of the Ministry of Defense and the Indonesian National Police by the Financial Services Authority — OJK — ID

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 25 OF 2022
CONCERNING
SUPERVISION OF THE MANAGEMENT OF SOCIAL INSURANCE PROGRAMS FOR MEMBERS OF THE INDONESIAN NATIONAL ARMED FORCES, MEMBERS OF THE INDONESIAN NATIONAL POLICE, AND CIVIL SERVANTS IN THE ENVIRONMENT OF THE MINISTRY OF DEFENSE AND THE INDONESIAN NATIONAL POLICE BY THE FINANCIAL SERVICES AUTHORITY BY THE GRACE OF THE ALMIGHTY GOD THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering :
a. that in accordance with Article 54 paragraph (3) of Government Regulation Number 102 of 2015 concerning Social Insurance for Members of the Indonesian National Armed Forces, Members of the Indonesian National Police, and Civil Servants in the Environment of the Ministry of Defense and the Indonesian National Police as amended by Government Regulation Number 54 of 2020 concerning Amendments to Government Regulation Number 102 of 2015 concerning Social Insurance for Members of the Indonesian National Armed Forces, Members of the Indonesian National Police, and Civil Servants in the Environment of the Ministry of Defense and the Indonesian National Police, the Financial Services Authority is designated as one of the external supervisors of the management of the Social Insurance Program for Members of the Indonesian National Armed Forces, Members of the Indonesian National Police, and Civil Servants in the Environment of the Ministry of Defense and the Indonesian National Police; b. that in order to carry out supervision over the management of the Social Insurance Program for Members of the Indonesian National Armed Forces, Members of the Indonesian National Police, and Civil Servants in the Environment of the Ministry of Defense and the Indonesian National Police, it is necessary to formulate regulations for the management of the Social Insurance Program for Members of the Indonesian National Armed Forces, Members of the Indonesian National Police, and Civil Servants in the Environment of the Ministry of Defense and the Indonesian National Police;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning the Supervision of the Management of the Social Insurance Program for Members of the Indonesian National Armed Forces, Members of the Indonesian National Police, and Civil Servants in the Environment of the Ministry of Defense and the Indonesian National Police by the Financial Services Authority;
Recalling :

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);
Government Regulation Number 102 of 2015 concerning Social Insurance for Members of the Indonesian National Armed Forces, Members of the Indonesian National Police, and Civil Servants in the Environment of the Ministry of Defense and the Indonesian National Police (State Gazette of the Republic of Indonesia Year 2015 Number 324, Supplement to the State Gazette of the Republic of Indonesia Number 5792) as amended by Government Regulation Number 54 of 2020 concerning Amendments to Government Regulation Number 102 of 2015 concerning Social Insurance for Members of the Indonesian National Armed Forces, Members of the Indonesian National Police, and Civil Servants in the Environment of the Ministry of Defense and the Indonesian National Police (State Gazette of the Republic of Indonesia Year 2020 Number 223, Supplement to the State Gazette of the Republic of Indonesia Number 6559);
DECIDING:
Establishing: FINANCIAL SERVICES AUTHABILITY REGULATION CONCERNING THE SUPERVISION OF THE MANAGEMENT OF SOCIAL INSURANCE PROGRAMS FOR MEMBERS OF THE INDONESIAN NATIONAL ARMED FORCES, MEMBERS OF THE INDONESIAN NATIONAL POLICE, AND CIVIL SERVANTS IN THE ENVIRONMENT OF THE MINISTRY OF DEFENSE AND THE INDONESIAN NATIONAL POLICE BY THE FINANCIAL SERVICES AUTHORITY.

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

Social Insurance for Members of the Indonesian National Armed Forces, Members of the Indonesian National Police, and Civil Servants in the Environment of the Ministry of Defense and the Indonesian National Police, hereinafter referred to as Social Insurance, is mandatory insurance to provide protection against socio-economic risks experienced by Members of the Indonesian National Armed Forces, Members of the Indonesian National Police, and Civil Servants in the Environment of the Ministry of Defense and the Indonesian National Police and/or their family members.
Program Manager is a legal entity designated in Government Regulations regarding social insurance for members of the Indonesian National Armed Forces, members of the Indonesian National Police, and civil servants in the environment of the Ministry of Defense and the Indonesian National Police to manage Social Insurance for participants.
External Supervisor is an external supervisor as referred to in Government Regulations regarding social insurance for members of the Indonesian National Armed Forces, members of the Indonesian National Police, and civil servants in the environment of the Ministry of Defense and the Indonesian National Police.
Risk is the potential for uncontrollable and/or controllable losses resulting from the occurrence of a specific event.
Risk Management is a series of procedures and methodologies used to identify, measure, control, and monitor Risks arising from all business activities of the Program Manager.
Good Corporate Governance for Program Managers, hereinafter referred to as Good Corporate Governance, is the structure and process used and applied by the Program Manager's organs to increase the achievement of business results objectives and optimize the value of the Program Manager for all stakeholders, particularly participants, in an accountable manner and based on statutory regulations and ethical values.
Business Plan is a written document describing development plans and business activities within a certain period, as well as strategies to realize these plans according to established targets and timeframes.
Program Manager's Organs are the General Meeting of Shareholders, the Board of Directors, and the Board of Commissioners.
Stakeholders are parties having an interest in the Social Insurance program.
General Meeting of Shareholders, hereinafter abbreviated as GMS, is the company organ that has authority not granted to the Board of Directors or Board of Commissioners within limits determined by laws governing limited liability companies and/or the articles of association.
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 purpose and objectives of the company, and representing the company, both in and out of court, in accordance with the provisions of the articles of association.
Board of Commissioners is the company organ tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors.
Independent Commissioner is a member of the Board of Commissioners who is not affiliated with shareholders, members of the Board of Directors, and/or other members of the Board of Commissioners, meaning they have no financial, managerial, shareholding, and/or family relationships due to marriage or descent up to the second degree, either horizontally or vertically, with shareholders, members of the Board of Directors, and/or other members of the Board of Commissioners, or other relationships that could affect their ability to act independently.
Affiliation is a relationship between an individual or legal entity with one or more individuals or other legal entities, such that one of them can influence the management or policies of the other or the other legal entity, or vice versa.
Conflict of Interest is a state where there is a conflict between the economic interests of the Program Manager and the personal economic interests of shareholders, members of the Board of Directors, members of the Board of Commissioners, and/or employees of the Program Manager.
Examination is a series of activities to search for, collect, process, and evaluate data and/or information regarding the Program Manager conducted at the Program Manager's office and/or at other places directly or indirectly related to the Program Manager's activities, as well as to assess and provide conclusions regarding the Program Manager's activities.

CHAPTER II
SCOPE AND MECHANISM OF SUPERVISION
Section One
General
Article 2
(1) Program Managers are financial service institutions.
(2) The Financial Services Authority conducts supervision over Program Managers.
(3) The Financial Services Authority's supervision as referred to in paragraph (2) is conducted on all programs based on statutory regulations.
(4) The scope of the Financial Services Authority's supervision over Program Managers includes:
a. the implementation of Good Corporate Governance; and b. the implementation of Risk Management.
Article 3
(1) The Financial Services Authority's supervision over Program Managers as referred to in Article 2 paragraph (2) consists of:
a. direct supervision; and b. indirect supervision.
(2) For the effectiveness of supervision over Program Managers, the Financial Services Authority may coordinate with other External Supervisors in carrying out supervision according to the scope of supervision for each as regulated in statutory regulations.
Section Two
Direct Supervision
Paragraph One
Objectives and Frequency of Direct Supervision
Article 4
Direct supervision over Program Managers as referred to in Article 3 paragraph (1) letter a is conducted through Examinations.
Article 5
Examinations aim to:
a. obtain an overview of the Program Manager's condition; and/or b. assess whether the Program Manager has complied with statutory regulations regarding Good Corporate Governance and Risk Management.
Article 6
(1) The Financial Services Authority conducts Examinations of Program Managers periodically and at any time.
(2) The Financial Services Authority establishes periodic Examinations as referred to in paragraph (1) to be conducted at least 1 (one) time in 1 (one) year. (3) Periodic Examinations as referred to in paragraph (2) and the scope of Examinations are established by the Financial Services Authority based on:
a. assessments of the Program Manager's condition or factors impacting the Program Manager's business activities within the scope of supervision as referred to in Article 2 paragraph (4); b. examination plans;
c. results of coordination with other External Supervisors; and/or
d. information from other parties having an interest in the Program Manager.
(4) The scope of Examinations includes all aspects or specific aspects of the scope of supervision as referred to in Article 2 paragraph (4).
Article 7
(1) In conducting Examinations of Program Managers as referred to in Article 4, the Financial Services Authority may conduct Examinations of:
a. subsidiary companies of the Program Manager; and/or b. other parties conducting transactions with the Program Manager.
(2) Examinations of parties as referred to in paragraph (1) are conducted if such parties are indicated to:
a. affect financial conditions or impact the Program Manager's business activities; or b. cause violations of statutory regulations.
Paragraph Two
Examiner Criteria
Article 8
(1) Examinations as referred to in Article 4 are conducted by examination teams.
(2) Examination teams as referred to in paragraph (1) consist of:
a. Financial Services Authority employees assigned to conduct Examinations; and/or b. other parties designated by the Financial Services Authority.
Paragraph Three
Obligations of Examined Parties
Article 9
(1) Program Managers and examined parties as referred to in Article 7 paragraph (1) are obligated to:
a. fulfill examination team requests to provide or lend books, files, notes, dispositions, memoranda, other necessary documents, electronic data, including copies, and other items deemed necessary to support Examinations; b. provide statements and explanations to examination teams based on actual facts and conditions related to examined aspects, both orally and in writing;
c. provide examination teams with opportunities to enter and inspect places or rooms deemed necessary;
d. provide examination teams with opportunities to research the existence and use of physical and/or non-physical facilities related to examined aspects; e. present third parties, including independent auditors and independent actuaries, to provide data, documents, and/or statements to examination teams related to Examinations; and/or f. fulfill other requests from examination teams to support the Examination process of Program Managers and related parties. (2) Program Managers, examined parties as referred to in Article 7 paragraph (1), and/or other parties are prohibited from hindering the Examination process.
Article 10
(1) Examinations are conducted by examination teams based on Examination Order Letters issued by the Financial Services Authority.
(2) Before conducting Examinations as referred to in paragraph (1), the Financial Services Authority submits Examination Notification Letters to Program Managers and/or examined parties as referred to in Article 7 paragraph (1). (3) Examination Notification Letters as referred to in paragraph (2) must at least contain information:
a. number and date of the Examination Order Letter; b. composition of the examination team;
c. scope of Examinations;
d. objectives of Examinations; e. duration of Examinations; f. documents required for Examinations; and g. deadline for submitting initial documents to examiners. (4) The Financial Services Authority may submit Examination Notification Letters to Program Managers and/or examined parties as referred to in Article 7 paragraph (1) on the same day as the implementation of Examinations if prior notification is suspected to:
a. complicate or hinder the Examination process; b. obscure the actual state of affairs; or
c. conceal or eliminate data, statements, or reports necessary for the purpose of Examinations.
Article 11
(1) During the Examination process, examination teams confirm findings with Program Managers, examined parties as referred to in Article 7 paragraph (1), and/or other related parties. (2) Before Examinations conclude, examination teams discuss findings with Program Managers and/or examined parties as referred to in Article 7 paragraph (1). (3) After Examinations conclude, examination teams hold meetings with the leadership of Program Managers and/or leadership of examined parties as referred to in Article 7 paragraph (1) regarding Examination results. (4) Results of meetings as referred to in paragraph (3) are documented in minutes containing Examination results, signed by examination teams and the leadership of Program Managers, and/or leadership of examined parties as referred to in Article 7 paragraph (1). (5) In the event that the leadership of Program Managers and/or leadership of examined parties as referred to in Article 7 paragraph (1) refuses to sign the minutes as referred to in paragraph (4), examination teams draft minutes without signatures from the leadership of Program Managers, and/or leadership of examined parties as referred to in Article 7 paragraph (1). (6) Examinations are implemented according to the duration stated in Examination Notification Letters and may be extended as needed or based on the complexity of Program Manager Examinations.
Article 12
(1) After the Examination process concludes, examination teams draft Examination Result Reports.
(2) The Financial Services Authority submits Examination Result Reports as referred to in paragraph (1) to the Board of Directors and Board of Commissioners of Program Managers. (3) Examination Result Reports as referred to in paragraph (1) are confidential. (4) The use of Examination Result Reports as referred to in paragraph (1) by parties outside Program Managers requires prior approval from the Financial Services Authority, unless otherwise regulated by statutory regulations. Paragraph Four Follow-up on Examination Results
Article 13
(1) Program Managers are obligated to take follow-up steps according to recommendations contained in Examination Result Reports as referred to in Article 12 paragraph (1). (2) Program Managers are obligated to report the implementation of follow-up steps as referred to in paragraph (1) to the Financial Services Authority according to the timeframe established in Examination Result Reports as referred to in Article 12 paragraph (1). (3) The obligation to report the implementation of follow-up steps as referred to in paragraph (2) ends if the Financial Services Authority assesses that Program Managers have implemented follow-up steps as referred to in paragraph (1). (4) The Financial Services Authority's assessment as referred to in paragraph (3) is communicated to Program Managers via letters. (5) The Financial Services Authority monitors follow-up steps as referred to in paragraph (1) as part of supervision activities over Program Managers.
Section Three
Indirect Supervision
Article 14
Indirect supervision as referred to in Article 3 paragraph (1) letter b is conducted through:
a. analysis of reports submitted by Program Managers to the Financial Services Authority; b. analysis of reports submitted by examined parties as referred to in Article 7 paragraph (1) to the Financial Services Authority; and/or
c. meetings with key parties of Program Managers.
Article 15
(1) The Financial Services Authority may request Program Managers and/or examined parties as referred to in Article 7 paragraph (1) to submit information and/or documents for the purpose of indirect supervision over Program Managers. (2) Program Managers and/or examined parties as referred to in Article 7 paragraph (1) are obligated to submit information and/or documents upon request by the Financial Services Authority as referred to in paragraph (1).
Section Four
Administrative Sanctions
Article 16
(1) Violations of provisions as referred to in Article 9, Article 12 paragraph (4), Article 13 paragraph (1), paragraph (2), and/or Article 15 paragraph (2) are subject to administrative sanctions in the form of written warnings. (2) Written warnings as referred to in paragraph (1) are issued at most 3 (three) consecutive times, with each warning having a maximum duration of 2 (two) months. (3) In the event that after the expiration of the validity period of the third written warning as referred to in paragraph (2), Program Managers still fail to comply with the provisions as referred to in paragraph (1), the Financial Services Authority:
a. provides recommendations to replace the Board of Directors and/or Board of Commissioners to shareholders; and/or b. conducts re-evaluations of the Board of Directors, Board of Commissioners, internal auditors, and/or actuaries of Program Managers in accordance with Financial Services Authority Regulations regarding re-evaluations for key parties of financial service institutions.

CHAPTER III
GOOD CORPORATE GOVERNANCE FOR PROGRAM MANAGERS
Section One
Implementation of Good Corporate Governance
Article 17
(1) Program Managers are obligated to implement Good Corporate Governance principles in all their business activities at all organizational levels or tiers. (2) Good Corporate Governance principles as referred to in paragraph (1) include:
a. transparency; b. accountability;
c. responsibility;
d. independence or professionalism; and e. fairness.
Article 18
The implementation of Good Corporate Governance aims to:
a. optimize the value of Program Managers for Stakeholders, particularly program participants; b. improve the management of Program Managers professionally, effectively, and efficiently;
c. increase the compliance of Program Manager organs and their subordinates so that decision-making and actions are grounded in high ethics, compliance with statutory regulations, and awareness of the Program Manager's social responsibility towards Stakeholders and environmental sustainability;
d. realize Program Managers that are healthier, reliable, trustworthy, and competitive; and e. increase Program Managers' contributions to the national economy.
Article 19
The implementation of Good Corporate Governance principles as referred to in Article 17 paragraph (2) must be documented in guidelines at least manifested in:
a. the execution of duties and responsibilities of the Board of Directors and Board of Commissioners; b. the completeness and execution of duties of committees and work units performing internal audit functions;
c. the handling of Conflicts of Interest;
d. the implementation of compliance, internal audit, and external audit functions; e. the implementation of Risk Management and internal control systems; f. the implementation of remuneration policies; g. Business Plans; and h. transparency of financial and non-financial conditions.
Section Two
General Meeting of Shareholders
Article 20
(1) Program Managers are obligated to hold GMS in accordance with statutory regulations.
(2) Every GMS implementation must produce GMS minutes containing at least the time, agenda, participants, opinions developed during the GMS, and GMS decisions.
Section Three
Board of Directors
Article 21
(1) Program Managers must have at least 3 (three) Board of Directors members.
(2) At least 50% (fifty percent) of the total number of Program Manager Board of Directors members must have knowledge and experience in Risk Management.
(3) All Program Manager Board of Directors members must have relevant knowledge and/or appropriate experience corresponding to their positions or fields of responsibility.
Article 22
(1) Program Managers are obligated to ensure compliance with statutory regulations.
(2) To ensure compliance as referred to in paragraph (1), Program Managers must appoint 1 (one) Board of Directors member who oversees the compliance function. (3) The Board of Directors member overseeing the compliance function as referred to in paragraph (2) cannot be concurrently held by a Board of Directors member overseeing insurance technical functions, financial functions, or marketing functions. (4) Based on supervision results, the Financial Services Authority may request Program Managers to appoint a Board of Directors member who solely oversees the compliance function. (5) Program Managers are obligated to fulfill the Financial Services Authority's request to appoint a Board of Directors member who solely oversees the compliance function as referred to in paragraph (4).
Article 23
(1) Program Managers must have work units or executive officials performing compliance functions.
(2) Work units or executive officials as referred to in paragraph (1) are tasked with assisting the Board of Directors in ensuring compliance with statutory regulations. (3) Work units or executive officials as referred to in paragraph (1) are responsible to the Board of Directors member overseeing the compliance function.

Article 24
The Board of Directors of the Program Manager is obligated to:
a. ensure effective, precise, and rapid decision-making and act independently, without interests that could interfere with their ability to perform duties independently and critically; b. comply with applicable legislation and internal regulations of the Program Manager in performing their duties;
c. manage the Program Manager according to their authority and responsibility;
d. ensure the implementation and application of Good Corporate Governance; e. be accountable for the performance of their duties to the General Meeting of Shareholders (GMS); f. ensure that the Program Manager considers the interests of all parties; and g. ensure that information regarding the Program Manager is provided to Stakeholders completely and on time.

Article 25
(1) Members of the Board of Directors are prohibited from holding concurrent positions in other companies.
(2) Concurrent positions as referred to in paragraph (1) do not include if a Member of the Board of Directors holds a concurrent position as a member of the Board of Commissioners in a subsidiary, provided that:
a. the Member of the Board of Directors referred to is not the Chief Executive Director; b. the Member of the Board of Directors is responsible for supervising the participation in the subsidiary; and
c. the concurrent position does not cause the Member of the Board of Directors to neglect the performance of duties and authority as a Member of the Board of Directors of the Program Manager.

Article 26
The Program Manager is prohibited from appointing Members of the Board of Directors who have previously served as Members of the Board of Directors, Board of Commissioners, or equivalent positions, and have been declared guilty or negligent, causing:
a. an insurance company to be subject to business activity restriction sanctions within the 3 (three) years prior to their appointment; b. a company in the financial services sector to have its business license revoked due to violations within the 3 (three) years prior to their appointment; or
c. a company in the financial services or non-financial services sector to be declared bankrupt based on a final and binding court decision within the 5 (five) years prior to their appointment.

Article 27
(1) The Board of Directors of the Program Manager is obligated to hold Board of Directors meetings periodically at least 1 (one) time in 1 (one) month.
(2) The results of the Board of Directors meetings as referred to in paragraph (1) must be recorded in the Board of Directors meeting minutes and documented properly. (3) Differences of opinion occurring in Board of Directors meeting decisions must be clearly stated in the Board of Directors meeting minutes, accompanied by the reasons for the differences of opinion. (4) Members of the Board of Directors of the Program Manager, whether present or absent from the Board of Directors meeting, are entitled to receive a copy of the Board of Directors meeting minutes. (5) The number of Board of Directors meetings held and the attendance of each Member of the Board of Directors of the Program Manager must be included in the report on the application of Good Corporate Governance.

Article 28
Members of the Board of Directors of the Program Manager are obligated to disclose regarding:
a. their share ownership reaching 5% (five percent) or more in other companies located domestically and internationally; and b. financial and family relationships with other Members of the Board of Directors and/or Members of the Board of Commissioners, to the Program Manager and included in the report on the application of Good Corporate Governance.

Article 29
Members of the Board of Directors of the Program Manager are prohibited from:
a. conducting transactions that have Conflicts of Interest with the activities of the Program Manager; b. utilizing their position at the Program Manager for personal, family, and/or third-party interests that can harm or reduce the profits of the Program Manager; and/or
c. taking and/or receiving personal benefits from the Program Manager, other than remuneration and facilities that have been established.

Fourth Section
Board of Commissioners

Article 30
(1) The Program Manager is obligated to have at least 3 (three) and at most equal to the number of Members of the Board of Directors of the Board of Commissioners. (2) At least 30% (thirty percent) of the number of Members of the Board of Commissioners of the Program Manager as referred to in paragraph (1) are Independent Commissioners.

Article 31
The Board of Commissioners of the Program Manager is obligated to:
a. ensure effective, precise, and rapid decision-making and act independently, without interests that could interfere with their ability to perform duties; b. perform supervisory duties and provide advice to the Board of Directors;
c. supervise the Board of Directors in maintaining the balance of interests of all parties;
d. compile the Board of Commissioners' activity report which is part of the report on the application of Good Corporate Governance; and e. monitor the effectiveness of the application of Good Corporate Governance.

Article 32
Members of the Board of Commissioners of the Program Manager are entitled to receive complete and timely information from the Board of Directors.

Article 33
Members of the Board of Commissioners of the Program Manager are prohibited from holding concurrent positions as:
a. members of the Board of Commissioners in more than 1 (one) other company; b. members of the Board of Directors in other companies; or
c. members of the Sharia Supervisory Board in other companies.

Article 34
The Program Manager is prohibited from appointing Members of the Board of Commissioners who have previously served as Members of the Board of Directors, Board of Commissioners, or equivalent positions, and have been declared guilty or negligent, causing:
a. an insurance company to be subject to business activity restriction sanctions within the 3 (three) years prior to their appointment; b. a company in the financial services sector to have its business license revoked due to violations within the 3 (three) years prior to their appointment; or
c. a company in the financial services or non-financial services sector to be declared bankrupt based on a final and binding court decision within the 5 (five) years prior to their appointment.

Article 35
(1) The Board of Commissioners of the Program Manager is obligated to hold Board of Commissioners meetings periodically at least 1 (one) time in 1 (one) month. (2) Board of Commissioners meetings as referred to in paragraph (1) within a 1 (one) year period are conducted with the following provisions:
a. at least 4 (four) meetings, among which are accompanied by the presence of the Board of Directors; and b. at least 1 (one) meeting, among which is accompanied by the presence of independent auditors. (3) Members of the Board of Commissioners of the Program Manager are obligated to attend Board of Commissioners meetings at least 80% (eighty percent) of the total number of Board of Commissioners meetings in a 1 (one) year period. (4) Board of Commissioners meetings as referred to in paragraph (1) must be attended physically by all Members of the Board of Commissioners at least 4 (four) times in 1 (one) year. (5) The results of the Board of Commissioners meetings as referred to in paragraph (1) must be recorded in the Board of Commissioners meeting minutes and documented properly. (6) Differences of opinion occurring in Board of Commissioners meeting decisions must be clearly stated in the Board of Commissioners meeting minutes, accompanied by the reasons for the differences of opinion. (7) Members of the Board of Commissioners of the Program Manager, whether present or absent from the Board of Commissioners meeting, are entitled to receive a copy of the Board of Commissioners meeting minutes. (8) The number of Board of Commissioners meetings held and the attendance of each Member of the Board of Commissioners must be included in the report on the application of Good Corporate Governance.

Article 36
Members of the Board of Commissioners of the Program Manager are obligated to disclose:
a. their share ownership reaching 5% (five percent) or more in other companies located domestically and internationally; and b. financial and family relationships with other Members of the Board of Commissioners and/or Members of the Board of Directors, to the Program Manager and included in the report on the application of Good Corporate Governance.

Article 37
Members of the Board of Commissioners of the Program Manager are prohibited from:
a. conducting transactions that have Conflicts of Interest with the activities of the Program Manager; b. utilizing their position at the Program Manager for personal, family, and/or third-party interests that can harm or reduce the profits of the Program Manager;
c. taking and/or receiving personal benefits from the Program Manager, other than remuneration and facilities that have been established; and/or
d. interfering in the operational activities of the Program Manager that are the responsibility of the Board of Directors.

Article 38
(1) Independent Commissioners have the main task of performing supervisory functions to voice the interests of participants.
(2) The Program Manager is prohibited from dismissing Independent Commissioners due to actions taken by Independent Commissioners in performing their duties as referred to in paragraph (1).

Article 39
Independent Commissioners of the Program Manager must meet the following requirements:
a. do not have Affiliation relationships with shareholders, Members of the Board of Directors, and/or other Members of the Board of Commissioners; b. understand the applicable legislation for the Program Manager;
c. have good knowledge of the financial condition of the Program Manager;
d. have good knowledge of the interests of participants; e. be Indonesian citizens; and f. reside in Indonesia.

Article 40
(1) In the event that Independent Commissioners assess that there are policies or actions by Members of the Board of Directors that harm or have the potential to harm the interests of participants, Independent Commissioners are obligated to propose the holding of a Board of Commissioners meeting. (2) The Board of Commissioners meeting as referred to in paragraph (1) is held to discuss the results of the Independent Commissioners' assessment of policies or actions by Members of the Board of Directors that harm or have the potential to harm the interests of participants. (3) In the event that other Members of the Board of Commissioners are unwilling to accept the proposal to hold a Board of Commissioners meeting as referred to in paragraph (1), Independent Commissioners are obligated to report completely to the Financial Services Authority (OJK) and copy the Board of Directors at the latest 7 (seven) working days since other Members of the Board of Commissioners were unwilling to accept the proposal to hold a Board of Commissioners meeting. (4) In the event that the decision results of the Board of Commissioners meeting as referred to in paragraph (1) do not agree with the results of the Independent Commissioners' assessment of policies or actions by Members of the Board of Directors that harm or have the potential to harm the interests of participants, Independent Commissioners are obligated to report completely to the Financial Services Authority (OJK) and copy the Board of Directors at the latest 7 (seven) working days since the decision results of the Board of Commissioners meeting.

Article 41
(1) The Board of Commissioners is obligated to compile reports on the implementation of the Board of Commissioners' supervisory duties periodically for the periods of June 30 and December 31. (2) In the event that there are important matters that can influence and/or endanger the interests of participants, Independent Commissioners are obligated to report in writing to the Financial Services Authority (OJK). (3) Disclosure of important matters to the Financial Services Authority (OJK) as referred to in paragraph (2) is submitted at the latest 5 (five) working days since the important matter is known.

Fifth Section
Implementation of Competency and Fit and Proper Test

Article 42
(1) Members of the Board of Directors, Members of the Board of Commissioners, and Actuaries of the Program Manager are obligated to obtain approval from the Financial Services Authority (OJK) before performing actions, duties, and functions. (2) In providing approval as referred to in paragraph (1), the Financial Services Authority (OJK) conducts a competency and fit and proper test for Members of the Board of Directors, Members of the Board of Commissioners, and Actuaries of the Program Manager. (3) The implementation of the competency and fit and proper test as referred to in paragraph (2) is carried out in accordance with the Financial Services Authority Regulation regarding competency and fit and proper tests for key parties of financial service institutions.

Sixth Section
Committees, Internal Auditors, and Independent Auditors

Article 43
(1) The Board of Directors is obligated to form:
a. an investment committee; and b. a Risk Management Committee, with each committee having at least 3 (three) members.
(2) Members of the investment committee as referred to in paragraph (1) letter a consist at least of:
a. Members of the Board of Directors who oversee the investment management function or Risk Management function; and b. the Actuary of the Program Manager.
(3) The Actuary of the Program Manager as referred to in paragraph (2) letter b must have qualifications as an Actuary who has received a license from the competent authority. (4) The investment committee as referred to in paragraph (1) letter a assists the Board of Directors in formulating investment policies and supervising the implementation of established investment policies. (5) The formulation of investment policies and supervision of the implementation of investment policies are carried out in accordance with applicable legislation. (6) The Risk Management Committee as referred to in paragraph (1) letter b consists at least of:
a. half of the Members of the Board of Directors; and b. relevant executive officials.
(7) One of the Members of the Board of Directors as referred to in paragraph (6) letter a is a Member of the Board of Directors who oversees the Risk Management function. (8) The authority and responsibility of the Risk Management Committee as referred to in paragraph (1) letter b include providing recommendations to the Chief Executive Director, at least containing:
a. the formulation of policies, strategies, and guidelines for the application of Risk Management; b. improvements or adjustments to the implementation of Risk Management based on the results of the evaluation of Risk Management implementation; and
c. the determination of matters related to business decisions that deviate from normal procedures.

Article 44
The Program Manager is obligated to have a work unit that performs the Risk Management function.

Article 45
(1) The organizational structure of the Risk Management function as referred to in Article 44 is adjusted to the size and complexity of the Program Manager's business and the Risks inherent in the Program Manager. (2) The Risk Management function as referred to in paragraph (1) must be independent from the business and operational functions and from the internal control function. (3) The Risk Management function as referred to in paragraph (1) is directly responsible to the Chief Executive Director or a Member of the Board of Directors who oversees the Risk Management function. (4) The authority and responsibility of the Risk Management function include:
a. identifying Risks, including Risks inherent in business activities; b. formulating Risk measurement methods;
c. monitoring the implementation of Risk Management strategies formulated by the Board of Directors;
d. monitoring the overall Risk position, by type of Risk, and by type of functional activity, and conducting testing using scenario/assumptions of abnormal conditions and testing using historical data; e. periodically reviewing the Risk Management process; f. reviewing proposals for business activity development or expansion; g. evaluating the accuracy of models and validity of data used to measure Risks, for those using models for internal purposes; h. providing recommendations to business and operational functions and/or to the Risk Management Committee, according to the authority held; and
i. formulating and submitting Risk profile reports to the Chief Executive Director, or the Member of the Board of Directors who oversees the Risk Management function and the Risk Management Committee periodically.

Article 46
The business and operational functions as referred to in Article 45 paragraph (2) are obligated to inform the Risk Management function of inherent Risk exposures periodically.

Article 47
(1) In supporting the effectiveness of performing duties and responsibilities, the Board of Commissioners is obligated to form:
a. an audit committee; and b. a Risk Monitoring Committee, with each committee having at least 3 (three) members.
(2) One of the members of the committee as referred to in paragraph (1) is an Independent Commissioner who simultaneously serves as the chairman of the committee. (3) At least 30% (thirty percent) of the members of the committee as referred to in paragraph (1) are parties other than the Program Manager who do not have financial, management, share ownership, and/or family relationships with shareholders, the Board of Commissioners, or the Board of Directors that can influence their ability to act independently. (4) In addition to the committees as referred to in paragraph (1), the Board of Commissioners may form other committees to support the implementation of the Board of Commissioners' duties.

Article 48
(1) The audit committee as referred to in Article 47 paragraph (1) letter a assists the Board of Commissioners in monitoring and ensuring the effectiveness of the internal control system and the performance of duties of internal and independent auditors by monitoring and evaluating the planning and implementation of audits to assess the adequacy of internal controls, including the financial reporting process. (2) The Risk Monitoring Committee as referred to in Article 47 paragraph (1) letter a assists the Board of Commissioners in monitoring the implementation of Risk Management formulated by the Board of Directors and assessing the Risk tolerance that can be taken by the Program Manager. (3) The audit committee and the Risk Monitoring Committee are obligated to compile reports on the implementation of their duties at least 1 (one) time in 6 (six) months.

Article 49
(1) The Program Manager is obligated to have an internal audit work unit.
(2) The internal audit work unit as referred to in paragraph (1) is directly responsible to the Chief Executive Director.
(3) The internal audit work unit as referred to in paragraph (1) is led by an internal auditor.
(4) The internal auditor as referred to in paragraph (3) must first obtain approval from the Board of Commissioners and the Financial Services Authority (OJK). (5) In performing their duties, the internal auditor is obligated to formulate an annual supervisory work plan and an internal control supervisory report. (6) The internal control supervisory report as referred to in paragraph (5) is formulated for the periods of June 30 and December 31.

Article 50
(1) In providing approval as referred to in Article 49 paragraph (4), the Financial Services Authority (OJK) conducts a competency and fit and proper test.
(2) The implementation of the competency and fit and proper test as referred to in paragraph (1) is carried out in accordance with the Financial Services Authority Regulation regarding competency and fit and proper tests for key parties of financial service institutions.

Article 51
(1) The Independent Auditor of the Program Manager must be appointed by the GMS from candidates for Independent Auditors proposed by the Board of Commissioners based on the proposal of the audit committee. (2) The nomination of Independent Auditors as referred to in paragraph (1) must be accompanied by:
a. the reasons for nomination and the amount of remuneration or service fees proposed for the Independent Auditor; and b. a statement of willingness signed by the Independent Auditor, to be free from the influence of the Board of Directors, Board of Commissioners, and interested parties in the Program Manager and willingness to provide information related to the results of their audit to the Financial Services Authority (OJK). (3) The Program Manager is obligated to provide all accounting records and supporting data necessary for the Independent Auditor, enabling the Independent Auditor to provide their opinion on the fairness, compliance, and consistency of the Program Manager's financial reports with audit standards.

Seventh Section
Remuneration Policy

Article 52
(1) Remuneration policies for Members of the Board of Directors, Members of the Board of Commissioners, and employees are established based on the principle of prudence in line with the long-term interests of the Program Manager and considering the fulfillment of obligations to participants and the sustainability of the Program Manager's business. (2) The remuneration policy as referred to in paragraph (1) must consider at least:
a. financial performance and fulfillment of obligations as regulated in applicable legislation; b. individual work performance;
c. fairness; and
d. consideration of long-term goals and strategies.

Eighth Section
Investment Governance

Article 53
(1) The Program Manager is obligated to formulate written investment policies and strategies.
(2) The Program Manager is obligated to implement the investment policies and strategies as referred to in paragraph (1).
(3) Compliance with the investment policies and strategies as referred to in paragraph (2) is evaluated periodically, at least 1 (one) time in 1 (one) year. (4) Investment policies and strategies as referred to in paragraph (1) must contain at least:
a. asset and liability profile; b. alignment between asset duration and liability duration;
c. investment objectives;
d. target investment return rates, including investment return benchmarks used; e. valuation basis, performance parameters/fundamental analysis, underlying assets, and qualitative limits for each type of investment asset; f. maximum allocation limits for investment for each type of investment asset; g. maximum proportion limits of assets that can be placed with one party; h. maximum limits on assets not placed in investment form;
i. investment objects that cannot be used for investment placement;
j. minimum portfolio liquidity levels to support fund availability; k. supervision and reporting systems for the implementation of investment management;
l. provisions regarding the use of investment managers, investment advisors, experts, and other service providers used in investment management;
m. provisions regarding the use of primary and/or secondary markets in securities transactions; n. provisions on the use of derivative instruments and other structured financial products for hedging purposes; o. restrictions on investment transaction authority for each management level and their accountability; and p. actions to be taken against the Board of Directors for violations of investment policies. (5) Investment policies and strategies as referred to in paragraph (1) must:
a. be established by the Board of Directors; b. be socialized to employees involved in investment management; and
c. be submitted to the Financial Services Authority (OJK) at the latest 20 (twenty) working days after being established by the Board of Directors.

Article 54
(1) The Board of Directors is obligated to formulate an annual investment management plan that contains at least:
a. a plan for the composition of investment types; b. estimated investment return rates for each type of investment; and
c. considerations underlying the plan for the composition of investment types.
(2) The annual investment management plan as referred to in paragraph (1) must reflect investment policies and strategies.
(3) The annual investment management plan as referred to in paragraph (1) is included in the Business Plan.

Article 55
In managing investments, the Board of Directors is obligated to conduct:
a. analysis of investment Risks for each investment placement and/or release, consisting at least of Market Risk, Liquidity Risk, and Operational Risk; and b. adequate and documented studies in placing, maintaining, and releasing investments, consisting at least of fundamental analysis, underlying assets, and contingency plans in the event of an increase in investment Risk.

Article 56
The Board of Directors is obligated to make investment decisions professionally, apply the principle of prudence, and optimize the value of the Program Manager for Stakeholders.

Article 57
Program Managers must have a work unit or employees that carry out investment management functions that meet the following requirements:
a. carry out the functions of analysis, execution, monitoring, and reporting of investment management; b. have and apply internal control systems and procedures to ensure that investments are carried out in accordance with investment policies and strategies and do not violate applicable laws and regulations; and
c. have integrity, expertise, and experience in the field of investment.

Article 58
(1) Program Managers who place investments in capital market investment instruments must deposit securities with a Custodian Bank.
(2) Program Managers who have investments in capital market investment instruments must have information access that can directly monitor changes in their investment portfolio, including the underlying assets of said investment assets. (3) Program Managers must have investment experts who have obtained an individual license as an Investment Manager Representative in accordance with Financial Services Authority Regulations regarding Investment Manager Representative licensing.

Article 59
All transactions in investment management between the Program Manager and counterparty parties must be carried out through transactions that are fair and free from Conflicts of Interest.

Article 60
(1) Program Managers may outsource their investment management to other parties.
(2) The outsourcing of investment management to other parties as referred to in paragraph (1) must meet the following requirements:
a. the other party has a business license as a securities company conducting business as an investment manager from the Financial Services Authority; b. the other party is not currently subject to administrative sanctions in the form of business activity restrictions or suspension of business activities by the Financial Services Authority, at the time the investment management outsourcing agreement is in effect;
c. the other party has an Investment Manager Representative who has experience managing funds of at least Rp500,000,000,000.00 (five hundred billion rupiah) at the time of appointment as the Program Manager's investment manager; and
d. the Investment Manager Representative as referred to in letter c is not currently or has never been subject to administrative sanctions by the Financial Services Authority within the last 5 (five) years. (3) The outsourcing of investment management to other parties as referred to in paragraph (1) must meet requirements regarding the type, limits, and assessment of investments as referred to in applicable laws and regulations.

Article 61
(1) The outsourcing of investment management to other parties as referred to in Article 60 paragraph (1) must be stipulated in a written agreement in the form of a notarial deed. (2) The written agreement as referred to in paragraph (1) must contain at least the following provisions:
a. rights and obligations of each party; b. type and limits of investment instruments;
c. the amount of costs charged;
d. type and routine reports on the management of said investments; e. the existence of the Program Manager company's right to obtain information and other documents related to the management of said investments; f. compensation for damages if the other party violates cooperation provisions or if the other party's negligence causes the Program Manager to suffer losses; g. accounting of assets managed by the other party at a custodian that does not have an Affiliation relationship with the Program Manager and the other party; h. dispute resolution and termination of the agreement; and
i. the willingness of the parties to provide information related to the Program Manager's investment management to the Financial Services Authority.

Article 62
(1) The Board of Directors must monitor and conduct studies on the investment placement portfolio of the Program Manager carried out by other parties.
(2) In the event that the investment placement portfolio carried out by other parties experiences significant performance decline and/or threatens the financial health of the Program Manager, the Board of Directors must take steps to improve the investment placement portfolio. (3) The outsourcing of investment management to other parties as referred to in Article 60 paragraph (1) does not reduce the responsibility of the Board of Directors in investment management.

Ninth Section
Business Plan

Article 63
(1) Program Managers must prepare a Business Plan.
(2) The Business Plan as referred to in paragraph (1) is prepared by the Board of Directors and approved by the Board of Commissioners.
(3) The Business Plan as referred to in paragraph (1) is prepared realistically, taking into account:
a. medium-term and/or long-term plans; b. external and internal factors that can affect the continuity of the Program Manager's business;
c. the principle of prudence; and
d. the application of Risk Management.
(4) The Business Plan as referred to in paragraph (1) must be submitted to the Financial Services Authority at the latest on November 30 before the year the Business Plan begins. (5) The annual budget work plan that has been prepared by the Program Manager can be used as part of fulfilling the submission of the Business Plan, provided that the provisions as referred to in paragraph (3) are observed. (6) For the first time, Program Managers must submit the Business Plan for the year 2023 at the latest on December 31, 2022.

Article 64
(1) Program Managers may make changes to the Business Plan, in the event there are external and internal factors that significantly affect operations and/or performance. (2) Changes to the Business Plan as referred to in paragraph (1) must be submitted to the Financial Services Authority at the latest 30 (thirty) working days before the implementation of the Business Plan changes, accompanied by written reasons for the changes. (3) If necessary, the Financial Services Authority may request the Program Manager to present or provide explanations regarding changes to the Business Plan.

Article 65
(1) In the event that the Program Manager's Business Plan is established through the General Meeting of Shareholders (GMS) and its establishment has the potential to exceed the time limit as referred to in Article 63 paragraph (4), the Program Manager must first submit the Business Plan that has been prepared by the Board of Directors and approved by the Board of Commissioners to the Financial Services Authority within the time limit as referred to in Article 63 paragraph (4). (2) The Business Plan that has been established in the GMS as referred to in paragraph (1) must be submitted to the Financial Services Authority at the latest 1 (one) month since the establishment in the GMS. (3) If necessary, the Financial Services Authority may request the Program Manager to present or provide a comprehensive explanation regarding the Business Plan submitted. (4) In the event that:
a. the Business Plan is assessed as not meeting the scope of the Business Plan; and/or b. projections, targets, or plans submitted in the Business Plan are assessed as unrealistic, the Financial Services Authority has the authority to request the Program Manager to make adjustments to the Business Plan submitted by the Program Manager. (5) Program Managers must submit adjustments to the Business Plan requested by the Financial Services Authority as referred to in paragraph (4) to the Financial Services Authority at the latest 15 (fifteen) working days after the date of the Business Plan adjustment request letter from the Financial Services Authority.

Article 66
(1) Program Managers must prepare:
a. Business Plan realization reports; and b. Business Plan supervision reports, periodically for the periods of June 30 and December 31.
(2) The Business Plan realization report as referred to in paragraph (1) letter a includes:
a. explanations regarding the achievement of the Business Plan; b. explanations regarding deviations from the realization of the Business Plan;
c. follow-up actions on the achievement of the Business Plan;
d. financial ratios and specific items; and e. other information, if any.
(3) The Business Plan supervision report as referred to in paragraph (1) letter b must contain at least:
a. reports on the implementation of the supervision duties of the Board of Commissioners as referred to in Article 41 paragraph (1); and b. the Board of Commissioners' assessment regarding:

realization of the Business Plan both quantitatively and qualitatively;
factors affecting the performance of the Program Manager; and
efforts to improve the performance of the Program Manager.

Tenth Section
Information Disclosure

Article 67
(1) Program Managers must provide information to the Financial Services Authority completely and on time.
(2) Program Managers must have a reliable financial reporting system for supervision purposes.

Article 68
(1) Program Managers must disclose to the Financial Services Authority regarding important matters, including:
a. resignation or dismissal of the public accountant; b. resignation or dismissal of the Board of Directors or Board of Commissioners;
c. material transactions with related parties;
d. significant decline in investment performance, accompanied by reasons; e. potential fraud and/or fraud incidents; f. potential Conflicts of Interest and/or ongoing Conflicts of Interest; and g. other material information regarding the Program Manager. (2) The disclosure of important matters as referred to in paragraph (1) is contained in the report on the application of Good Corporate Governance. (3) If important matters as referred to in paragraph (1) can affect financial health and/or endanger participant interests, Program Managers must report such important matters to the Financial Services Authority at the latest 5 (five) working days since they were known.

Article 69
(1) Program Managers must protect the interests of participants and their heirs.
(2) In protecting the interests of participants and their heirs as referred to in paragraph (1), Program Managers must do the following:
a. fulfill the rights of participants and their heirs; b. provide good service for participants and their heirs;
c. disclose material information related to participants and their heirs; and
d. act with integrity, competence, and good faith.

Article 70
(1) Program Managers must fulfill obligations arising from applicable laws and regulations and/or agreements made with employees, participants, and/or other Stakeholders. (2) Program Managers must inform the rights of participants and other interests related to participants periodically.

Eleventh Section
Business Ethics

Article 71
(1) The Board of Directors, Board of Commissioners, and employees of the Program Manager are prohibited from offering or giving anything, directly or indirectly, to other parties, to influence decision-making in violation of applicable laws and regulations. (2) The Board of Directors, Board of Commissioners, and employees of the Program Manager are prohibited from receiving anything for their personal interests in violation of applicable laws and regulations, directly or indirectly, from anyone, which can influence decision-making.

Article 72
Program Managers must create guidelines on ethical behavior containing business ethics values, as a guide for the Board of Directors, Board of Commissioners, and all employees of the Program Manager.

Article 73
(1) Program Managers may provide donations for charitable purposes within reasonable and fair limits and without disrupting the financial health of the Program Manager. (2) Program Managers may provide donations other than as referred to in paragraph (1), provided there is no Conflict of Interest, does not contradict applicable laws and regulations, and does not disrupt the financial health of the Program Manager.

Twelfth Section
Self-Assessment of the Application of Good Corporate Governance

Article 74
(1) Program Managers must conduct a self-assessment of the application of Good Corporate Governance every year.
(2) The self-assessment of the application of Good Corporate Governance as referred to in paragraph (1) is conducted based on the Good Corporate Governance guidelines and the self-assessment checklist. (3) Provisions regarding the form and structure of the self-assessment of the application of Good Corporate Governance are established by the Financial Services Authority.

Article 75
(1) Program Managers must prepare and submit a report on the application of Good Corporate Governance to the Financial Services Authority for each fiscal year-end at the latest on April 30 of the following year. (2) The report on the application of Good Corporate Governance as referred to in paragraph (1) consists of at least:
a. transparency of the application of Good Corporate Governance, which must contain disclosure of all aspects of the implementation of Good Corporate Governance principles; b. self-assessment of the application of Good Corporate Governance;
c. action plans including corrective actions required and completion timeframes and obstacles to completion, if there are still deficiencies in the application of Good Corporate Governance; and
d. disclosure of important matters as referred to in Article 68 paragraph (1).
(3) The form, structure, and method of submission of the report as referred to in paragraph (1) are carried out in accordance with Financial Services Authority Regulations regarding periodic reports of insurance companies.

Article 76
The Financial Services Authority conducts monitoring and evaluation of the report on the application of Good Corporate Governance submitted by the Program Manager as referred to in Article 75 paragraph (1).

Thirteenth Section
Administrative Sanctions

Article 77
(1) Violations of the provisions as referred to in Article 17 paragraph (1), Article 19, Article 20, Article 21 paragraph (1), Article 22 paragraph (1), paragraph (2), paragraph (5), Article 23 paragraph (1), Article 24, Article 25 paragraph (1), Article 26, Article 27 paragraph (1), paragraph (2), paragraph (3), Article 28, Article 29, Article 30 paragraph (1), Article 31, Article 33, Article 34, Article 35 paragraph (1), paragraph (3), paragraph (4), paragraph (5), paragraph (6), Article 36, Article 37, Article 38 paragraph (2), Article 40 paragraph (1), paragraph (3), paragraph (4), Article 41 paragraph (1), paragraph (2), Article 42 paragraph (1), Article 43 paragraph (1), paragraph (3), Article 44, Article 46, Article 47 paragraph (1), Article 48 paragraph (3), Article 49 paragraph (1), paragraph (4), paragraph (5), Article 51, Article 53 paragraph (1), paragraph (2), paragraph (5), Article 54 paragraph (1), Article 55, Article 56, Article 57, Article 58, Article 59, Article 60 paragraph (2), paragraph (3), Article 61, Article 62 paragraph (1), paragraph (2), Article 63 paragraph (1), paragraph (4), paragraph (6), Article 64 paragraph (2), Article 65 paragraph (1), paragraph (2), paragraph (5), Article 66 paragraph (1), Article 67, Article 68 paragraph (1), paragraph (3), Article 69, Article 70, Article 71, Article 72, Article 74 paragraph (1), and/or Article 75 paragraph (1) are subject to administrative sanctions in the form of written warnings. (2) Written warnings as referred to in paragraph (1) are given at most 3 (three) times consecutively with a duration of each at most 2 (two) months. (3) In the event that after the expiration of the validity period of the third written warning as referred to in paragraph (2), the Program Manager, Board of Directors, and/or Board of Commissioners still cannot meet the provisions as referred to in paragraph (1), the Financial Services Authority:
a. provides recommendations to replace the Board of Directors and/or Board of Commissioners to the shareholders; and/or b. conducts a re-evaluation of the Board of Directors, Board of Commissioners, internal auditors and/or actuaries of the Program Manager in accordance with Financial Services Authority Regulations regarding re-evaluation for key parties of financial service institutions.

CHAPTER IV
RISK MANAGEMENT

First Section
Application of Risk Management

Article 78
(1) Program Managers must apply Risk Management effectively.
(2) Program Managers must appoint 1 (one) member of the Board of Directors who oversees the Risk Management function.
(3) The application of Risk Management as referred to in paragraph (1) must at least cover:
a. active supervision by the Board of Directors and Board of Commissioners; b. adequacy of Risk Management policies and procedures, and the establishment of Risk limits;
c. adequacy of the process for identifying, measuring, controlling, and monitoring Risk, and the Risk Management information system; and
d. a comprehensive internal control system.
(4) The application of Risk Management as referred to in paragraph (1) must be adjusted to the objectives, business policies, size, and complexity of the Program Manager's business.

Second Section
Active Supervision by the Board of Directors and Board of Commissioners

Article 79
Program Managers must establish clear authorities and responsibilities at every level of position related to the application of Risk Management as referred to in Article 78.

Article 80
(1) Authorities and responsibilities in the application of Risk Management as referred to in Article 79 for the Board of Directors must at least:
a. formulate written and comprehensive Risk Management policies and strategies; b. be responsible for the implementation of Risk Management policies and the Risk exposure taken by the Program Manager as a whole;
c. evaluate and decide on transactions and Risk limits that require Board of Directors approval;
d. develop a Risk Management culture at all levels of the organization; e. ensure the improvement of human resources competence related to Risk Management; f. ensure that the Risk Management function has operated independently; and g. conduct periodic reviews to ensure:

the accuracy of Risk assessment methodologies;
the adequacy of the implementation of the Risk Management information system; and
the appropriateness of Risk Management policies and procedures and the establishment of Risk limits.
(2) The Risk Management policies and strategies as referred to in paragraph (1) letter a are evaluated periodically at least 1 (one) time in 1 (one) year.
(3) In the event there are factors that significantly affect the business activities of the Program Manager, the evaluation of Risk Management policies and strategies as referred to in paragraph (1) letter a is carried out ad hoc. (4) The Board of Directors' responsibility for the implementation of Risk Management policies as referred to in paragraph (1) letter b includes:
a. evaluating and providing direction based on reports submitted by the Risk Management function; and b. submitting accountability reports to the Board of Commissioners at least 1 (one) time in 6 (six) months. (5) In exercising authorities and responsibilities as referred to in paragraph (1), the Board of Directors must have an understanding of the Risks inherent in all functional activities of the Program Manager and be able to take necessary actions in accordance with the Program Manager's Risk profile.

Article 81
(1) Authorities and responsibilities for the application of Risk Management as referred to in Article 79 for the Board of Commissioners must at least:
a. approve and evaluate Risk Management policies; b. evaluate the Board of Directors' accountability for the implementation of Risk Management policies; and
c. evaluate and decide on Board of Directors' requests related to transactions and Risk limits that require Board of Commissioners approval.
(2) The evaluation of Risk Management policies as referred to in paragraph (1) letter a is carried out at least 1 (one) time in 1 (one) year.
(3) In the event there are factors that significantly affect the business activities of the Program Manager, the evaluation of Risk Management policies as referred to in paragraph (1) letter a is carried out ad hoc. (4) The evaluation of the Board of Directors' accountability for the implementation of Risk Management policies as referred to in paragraph (1) letter b is carried out at least 1 (one) time in 6 (six) months.

Third Section
Adequacy of Risk Management Policies and Procedures, Establishment of Risk Limits, and Use of Information Technology

Article 82
Risk Management policies as referred to in Article 78 paragraph (3) letter b must at least contain:
a. the establishment of Risks related to the business activities of the Program Manager; b. the establishment of the use of measurement methods and Risk Management information systems;
c. the establishment of the level of Risk to be taken, the establishment of Risk tolerance, and the determination of Risk limits;
d. the establishment of Risk rating assessments; e. the preparation of emergency plans in worst-case conditions; and f. the establishment of an internal control system in the application of Risk Management.

Article 83
(1) Risk Management procedures and the establishment of Risk limits as referred to in Article 78 paragraph (3) letter b must be adjusted to the level of Risk to be taken against the Program Manager's Risk. (2) Risk Management procedures and the establishment of Risk limits as referred to in paragraph (1) must at least contain:
a. clear accountability and levels of delegation of authority; b. periodic review of Risk Management procedures and the establishment of Risk limits; and
c. adequate documentation of Risk Management procedures and the establishment of Risk limits.
(3) The establishment of Risk limits as referred to in paragraph (2) must cover:
a. overall limits; b. limits per type of Risk; and
c. limits per functional activity and specific transactions that have Risk exposure.

Fourth Section
Adequacy of the Process for Identifying, Measuring, Controlling, and Monitoring Risk

Article 84
(1) Program Managers must carry out the process of identifying, measuring, controlling, and monitoring Risk as referred to in Article 78 paragraph (3) letter c regarding material Risk factors. (2) The implementation of the process of identifying, measuring, controlling, and monitoring Risk as referred to in paragraph (1) must be supported by:
a. timely management information systems; b. accurate and informative reports regarding financial conditions, performance of functional activities, and the Program Manager's Risk exposure; and
c. human resources with competence in the field of Risk Management.

Article 85
(1) To carry out the Risk identification process, Program Managers must conduct analysis at least regarding:
a. the characteristics of Risks inherent in the Program Manager; and b. Risks from the business activities of the Program Manager.
(2) To carry out Risk measurement, Program Managers must conduct at least:
a. periodic evaluation of the suitability of assumptions, data sources, and procedures used to measure Risk; and b. adjustments to the Risk measurement process in the event of changes in the Program Manager's business activities and material Risk factors. (3) Program Managers must carry out Risk control processes to manage specific Risks that can threaten the continuity of the Program Manager's business. (4) To carry out Risk monitoring, Program Managers must conduct at least:
a. evaluation of Risk exposure; and b. adjustments to the reporting process in the event of changes in:

business activities;
Risk factors;
information technology; and
the Program Manager's Risk Management information system,
that are material.

Article 86
(1) The Risk Management information system as referred to in Article 78 paragraph (3) letter c must be supported by human resources with competence in the field of Risk Management information systems.

(2) The Risk Management Information System as referred to in Article 78 paragraph (3) letter c, includes reports or information at least regarding:
a. Risk exposure; b. compliance with Risk Management policies as referred to in Article 82 as well as Risk Management procedures and the establishment of Risk limits as referred to in Article 83; and
c. the implementation of Risk Management compared to the established targets.
(3) Reports or information generated from the Risk Management Information System as referred to in paragraph (1) must be submitted regularly to the Board of Directors.

Fifth Section
Internal Control System
Article 87
Program Managers must implement an effective internal control system against Risks inherent in the implementation of business activities at all levels of the Program Manager's organization.

Article 88
(1) The implementation of the internal control system as referred to in Article 87 must at least be able to detect weaknesses and deviations that cause or affect Risk exposure in a timely manner. (2) The internal control system as referred to in paragraph (1) must ensure:
a. the compliance of the Program Manager's management level with Risk Management policies and procedures as well as statutory regulations and the Program Manager's internal policies or regulations; b. the compliance and effectiveness of the Risk Management function in designing and implementing Risk Management strategies and policies;
c. the availability of complete, accurate, relevant, and timely financial and management information;
d. effectiveness and efficiency in business and operational activities; and e. the effectiveness of Risk culture within the Program Manager's organization as a whole.

Article 89
(1) The comprehensive internal control system as referred to in Article 78 paragraph (3) letter d in the application of Risk Management contains at least:
a. the suitability of the internal control system with the type and level of Risk inherent in the Program Manager's business activities; b. the establishment of authority and responsibility for monitoring compliance with Risk Management policies as referred to in Article 82 as well as Risk Management procedures and the establishment of Risk limits as referred to in Article 83;
c. the establishment of reporting lines and clear separation of functions from operational functions to Risk control functions;
d. an organizational structure that clearly depicts the Program Manager's business activities; e. accurate and timely financial and operational reporting; f. sufficient procedures to ensure the Program Manager's compliance with statutory regulations and regulations for Program Managers; g. effective, independent, and objective review of the Program Manager's operational activity assessment procedures; h. adequate testing and review of the Risk Management Information System;
i. complete and adequate documentation of operational procedures, scope, and audit findings, as well as the responses of the Board of Directors and Board of Commissioners, Program Manager based on audit results; and
j. periodic and continuous verification and review of the handling of material weaknesses of the Program Manager and the actions of the Board of Directors and Board of Commissioners of the Program Manager to correct deviations that occur. (2) The assessment of the internal control system in the application of Risk Management as referred to in paragraph (1) must be conducted by the internal audit function.

Sixth Section
Application of Risk Management in the Use of Information Technology
Article 90
(1) Program Managers must apply Risk Management effectively in the use of information technology.
(2) The application of Risk Management as referred to in paragraph (1) is implemented in accordance with the Financial Services Authority Regulation regarding the application of Risk Management in the use of information technology by non-bank financial service institutions.

Seventh Section
Administrative Sanctions
Article 91
(1) Violations of the provisions as referred to in Article 78 paragraph (1), paragraph (2), paragraph (4), Article 79, Article 83 paragraph (1), paragraph (3), Article 84, Article 85, Article 86 paragraph (1), Article 87, Article 88 paragraph (2), Article 89 paragraph (2), and/or Article 90 paragraph (1) are subject to administrative sanctions in the form of written warnings. (2) Written warnings as referred to in paragraph (1) are given at most 3 (three) times consecutively with a time limit of each at most 2 (two) months. (3) In the event that after the expiration of the validity period of the third written warning as referred to in paragraph (2), the Program Manager still cannot meet the provisions as referred to in paragraph (1), the Financial Services Authority:
a. provides a recommendation to replace the Board of Directors and/or Board of Commissioners to the shareholders; and/or b. conducts a re-evaluation of the Board of Directors, Board of Commissioners, internal auditors and/or actuaries of the Program Manager in accordance with the Financial Services Authority Regulation regarding re-evaluation for key parties of financial service institutions.

CHAPTER V
REPORTING

First Section
Types, Forms, and Structure of Periodic Reports
Article 92
(1) Program Managers must prepare:
a. annual financial reports for the period from January 1 to December 31; b. quarterly financial reports ending on March 31, June 30, September 30, and December 31;
c. program implementation reports for each program ending on March 31, June 30, September 30, and December 31;
d. monthly financial reports for the period from the 1st to the end of the current month; and e. other reports that must be submitted to the Financial Services Authority in accordance with statutory regulations. (2) The annual financial reports as referred to in paragraph (1) letter a must be audited by a public accountant registered with the Financial Services Authority. (3) The form and content of reports as referred to in paragraph (1) letters a, b, and c follow the form and content of reports as stated in the Minister of Finance Regulation regarding the management of contributions and reporting of old-age savings programs, work accident insurance, and death insurance for soldiers of the Indonesian National Armed Forces, members of the Indonesian National Police, and civil servants within the Ministry of Defense and the Indonesian National Police. (4) The form and content of monthly financial reports as referred to in paragraph (1) letter d follow the form and content of financial reports as referred to in paragraph (3).

Article 93
(1) Program Managers must submit to the Financial Services Authority:
a. annual financial reports as referred to in Article 92 paragraph (1) letter a and reports on the implementation of Good Corporate Governance as referred to in Article 75 paragraph (1) at the latest by April 30 of the following year; b. internal control supervision reports as referred to in Article 49 paragraph (5), Business Plan realization reports as referred to in Article 66 paragraph (1) letter a, and Business Plan supervision reports as referred to in Article 66 paragraph (1) letter b, at the latest 1 (one) month after the end of the relevant semester;
c. quarterly financial reports as referred to in Article 92 paragraph (1) letter b and program implementation reports as referred to in Article 92 paragraph (1) letter c, at the latest 1 (one) month after the end of the relevant quarter;
d. monthly financial reports as referred to in Article 92 paragraph (1) letter d at the latest on the 10th of the following month; and e. other reports as referred to in Article 92 paragraph (1) letter e in accordance with the time limits determined in statutory regulations. (2) If the final deadline for submitting reports as referred to in paragraph (1) falls on a holiday, the final submission deadline is the first working day after the aforementioned final deadline.

Second Section
Procedure for Submitting Reports
Article 94
(1) The submission of reports to the Financial Services Authority as referred to in Article 93 is conducted online through the Financial Services Authority's data communication network system. (2) In the event that the Financial Services Authority's data communication network system is not yet available or experiences technical difficulties:
a. the Financial Services Authority informs the Program Manager; and b. submission as referred to in paragraph (1) is conducted via email to the Financial Services Authority. (3) In the event that submission via email as referred to in paragraph (2) experiences technical difficulties, reports are submitted offline using electronic data storage media accompanied by written notification and sent to the Financial Services Authority via a letter signed by the Board of Directors and addressed to:
Financial Services Authority u.p. Director of Insurance Supervision and BPJS Kesehatan Wisma Mulia 2 Building, 12th Floor Jalan Jenderal Gatot Subroto Kavling 40 Jakarta 12710. (4) Offline submission of reports as referred to in paragraph (3) is conducted by:
a. being handed directly to the Financial Services Authority office; or b. being sent via a courier service company.
(5) Program Managers are deemed to have submitted documents as referred to in paragraph (1) with the following provisions:
a. for online submission via:

the Financial Services Authority's data communication network system, proven by a receipt from the Financial Services Authority's data communication network system; or
email to the Financial Services Authority, proven by email sending proof, in the event that submission through the data communication network cannot be performed; or
b. for offline submission, proven by a receipt from the Financial Services Authority.
(6) The Financial Services Authority may request original documents in the form of printed reports that have been submitted by Program Managers through the Financial Services Authority's data communication network system. (7) In the event of changes to the Financial Services Authority's office address as referred to in paragraph (3), the Financial Services Authority will communicate the address change via letter or announcement. (8) Program Managers must be accountable that every document submitted online as referred to in paragraph (1) and offline as referred to in paragraph (3) is a document that is true and consistent with the original document.

Third Section
Administrative Sanctions
Article 95
(1) Violations of the provisions as referred to in Article 92 paragraph (1), paragraph (2), Article 93 paragraph (1), and/or Article 94 paragraph (8) are subject to administrative sanctions in the form of written warnings. (2) Written warnings as referred to in paragraph (1) are given at most 3 (three) times consecutively with a time limit of each at most 2 (two) months. (3) In the event that after the expiration of the validity period of the third written warning as referred to in paragraph (2), the Program Manager, Board of Directors, and/or Board of Commissioners still cannot meet the provisions as referred to in paragraph (1), the Financial Services Authority:
a. provides a recommendation to replace the Board of Directors and/or Board of Commissioners to the shareholders; and/or b. conducts a re-evaluation of the Board of Directors, Board of Commissioners, internal auditors and/or actuaries of the Program Manager in accordance with the Financial Services Authority Regulation regarding re-evaluation for key parties of financial service institutions.

Article 96
(1) Program Managers who violate the provisions of Article 93 paragraph (1) are subject to additional administrative sanctions in the form of administrative fines. (2) The amount of administrative fines for violations of the provisions of Article 93 paragraph (1):
a. Rp500,000.00 (five hundred thousand Rupiah) for each type of report and for each day of delay; and b. at most Rp180,000,000.00 (one hundred eighty million Rupiah) for each type of report submitted late.

CHAPTER VI
CLOSING PROVISIONS

Article 97
Provisions regarding Good Corporate Governance and the application of Risk Management apply 6 (six) months since this Financial Services Authority Regulation was enacted, except for the obligation to submit the first Business Plan as referred to in Article 63 paragraph (6).

Article 98
At the time this Financial Services Authority Regulation takes effect, Financial Services Authority Regulation Number 3/POJK.05/2013 regarding Monthly Reports of Non-Bank Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2013 Number 150, Supplement to the State Gazette of the Republic of Indonesia Number 5443) is declared invalid for Program Managers.

Article 99
This Financial Services Authority Regulation takes effect on the date of enactment.

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

For the information of everyone, ordering the enactment of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on December 20, 2022
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signature
MAHENDRA SIREGAR

Enacted in Jakarta on December 21, 2022
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signature
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2022 NUMBER 30/OJK

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 25 OF 2022
REGARDING
SUPERVISION OF SOCIAL INSURANCE PROGRAM MANAGERS FOR SOLDIERS OF THE INDONESIAN NATIONAL ARMED FORCES, MEMBERS OF THE INDONESIAN NATIONAL POLICE, AND CIVIL SERVANTS WITHIN THE MINISTRY OF DEFENSE AND THE INDONESIAN NATIONAL POLICE BY THE FINANCIAL SERVICES AUTHORITY

I. GENERAL
Article 54 of Government Regulation Number 54 of 2020 regarding Amendment to Government Regulation Number 102 of 2015 regarding Social Insurance for Soldiers of the Indonesian National Armed Forces, Members of the Indonesian National Police, and Civil Servants within the Ministry of Defense and the Indonesian National Police (PP 54/2020) regulates that supervision of Social Insurance implementation is conducted by internal and external supervisors. Furthermore, it is stated that the Financial Services Authority is one of the External Supervisors besides the Inspectorate General of the Ministry of Defense, the General Supervision Inspectorate of the National Police Headquarters, the Inspectorate General of the Indonesian National Armed Forces, the Inspectorate General of the Ministry of Finance, the Audit Board of the Republic of Indonesia, and independent auditors.
The appointment of the Financial Services Authority as an External Supervisor in the aforementioned Government Regulation is the legal basis for the Financial Services Authority as stipulated in Law Number 21 of 2011 regarding the Financial Services Authority (UU OJK) which can supervise other financial service institutions by the Financial Services Authority based on statutory regulations. As referred to in Article 6 of UU OJK which explains that the Financial Services Authority carries out regulation and supervision of financial service activities in the banking sector, capital market, insurance, pension funds, financing institutions, and other financial service institutions. In Article 1 number 10 of UU OJK it is stated that other financial service institutions include pawnshops, guarantee institutions, Indonesia export financing institutions, secondary housing financing companies, and institutions that manage mandatory community funds, including social insurance, pension, and welfare program organizers, and other financial service institutions that are stated to be supervised by the Financial Services Authority based on statutory regulations. The Financial Services Authority conducts supervision of Program Managers to realize transparent, sustainable program management capable of protecting public interests. To achieve this goal, a supervision system is needed that can provide indications of potential Program Manager failures early. These indications can be obtained accurately if the Financial Services Authority obtains adequate information regarding the condition of Social Insurance Program Managers, which can be obtained through direct and indirect supervision. This Financial Services Authority Regulation regulates main matters regarding Program Manager supervision such as the scope of the Financial Services Authority's supervision over Program Managers, the Financial Services Authority's authority to request Program Managers to prepare and submit specific reports, compliance enforcement, and coordination with External Supervisors. With the existence of this Financial Services Authority Regulation, it is hoped that the Financial Services Authority's supervision of Program Managers can run effectively and efficiently.

II. ARTICLE BY ARTICLE
Article 1
Clear enough.
Article 2
Clear enough.
Article 3
Paragraph (1)
Clear enough.
Paragraph (2)
Coordination as per these provisions can be conducted in the form of coordination:
a. in supervision; b. exchange of data and/or information relevant to supervision activities; and
c. formulation of regulations and policy formulation.
Article 4
Clear enough.
Article 5
Clear enough.
Article 6
Paragraph (1)
Examinations at any time are conducted among others to deepen the results of indirect supervision and/or indications of deviations from healthy financial service institution practices. Paragraph (2) Clear enough. Paragraph (3) Clear enough. Paragraph (4) Clear enough.
Article 7
Paragraph (1)
Letter a
Clear enough.
Letter b
What is meant by "other parties who transact with Program Managers" includes parties who cooperate with Program Managers.
Paragraph (2)
Clear enough.
Article 8
Paragraph (1)
Clear enough.
Paragraph (2)
Letter a
Clear enough.
Letter b
What is meant by "other parties" includes public accountants, actuaries, and/or independent appraisers registered with the Financial Services Authority.
Article 9
Paragraph (1)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
Clear enough.
Letter e
Clear enough.
Letter f
What is meant by "other requests" are requests other than those established in letters a through e as long as they support the Examination.
Paragraph (2)
What is meant by "other parties" are parties other than the parties being examined.
What is meant by "hindering the Examination process" includes among others:
a. not immediately providing documents or other things needed in the Examination to the Financial Services Authority within the determined time limit; and b. lending books, providing notes, documents, or incorrect information.
Article 10
Clear enough.
Article 11
Paragraph (1)
The examination team confirms with Program Managers and/or related other parties to request additional explanations for the examiners' findings or request additional evidence or facts regarding the findings. Paragraph (2) Prior discussion or pre-exit meeting to ensure that the results of Direct Examination by the examination team are consistent with evidence or facts and can be accepted by Program Managers and/or related other parties. Prior discussion or pre-exit meeting is conducted between the examination team and Program Managers and/or related other parties. Paragraph (3) The examination team holds a meeting or exit meeting to convey the results of Direct Examination along with evidence or facts, as well as recommendations or follow-up actions after Direct Examination to the Board of Directors of Program Managers. In the meeting or exit meeting, it is expected that there are no more differences of opinion between the examiners and Program Managers. However, in the event of disagreement on some substance and/or recommendations, this matter is stated in the minutes. Paragraph (4) Examination results include among others Examination findings and recommendations. Paragraph (5) Clear enough. Paragraph (6) Clear enough.
Article 12
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
The Examination results report is intended as an educational tool to improve Program Manager performance. Therefore, Program Managers are not permitted to disseminate data and/or information contained in the Examination results report. Paragraph (4) Clear enough.
Article 13
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
Submission via letter can be in electronic form.
Paragraph (5)
Clear enough.
Article 14
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
What is meant by "key parties" are parties who own, manage, supervise, and/or have significant influence over Program Managers.
Article 15
Clear enough.
Article 16
Clear enough.
Article 17
Paragraph (1)
Clear enough.
Paragraph (2)
Letter a
What is meant by "transparency" is transparency in the decision-making process and transparency in the disclosure and provision of relevant information regarding Program Managers, which is easily accessible by Stakeholders in accordance with statutory regulations as well as standards, principles, and healthy business practices. Letter b What is meant by "accountability" is the clarity of functions and the execution of accountability of Program Manager Organs so that performance can run transparently, fairly, effectively, and efficiently. Letter c What is meant by "responsibility" is the consistency of Program Manager management with statutory regulations and ethical values as well as standards, principles, and healthy business practices. Letter d What is meant by "independence or professionalism" is the state of Program Managers managed independently and professionally and free from Conflicts of Interest and influence or pressure from any party that is not in accordance with statutory regulations and ethical values as well as standards, principles, and healthy business practices. Letter e What is meant by "fairness" is equality, balance, and justice in fulfilling the rights of Stakeholders arising from agreements, statutory regulations, and ethical values as well as standards, principles, and healthy business practices.
Article 18
Clear enough.
Article 19
Clear enough.
Article 20
Clear enough.
Article 21
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
What is meant by "relevant knowledge and/or experience appropriate to the position or field of responsibility" includes among others Directors who oversee the investment field must have knowledge and/or experience in the investment field.
Article 22
Paragraph (1)
Program Manager compliance with statutory regulations includes among others regulations regarding investment governance, financial health, and Risk Management issued by the Ministry of Finance, Ministry of State-Owned Enterprises

State-owned assets, Financial Services Authority regulations, and other related regulations for Program Managers.

One example of a regulation issued by the Ministry of Finance concerns the procedures for managing contributions and reporting on the implementation of the old-age savings program, work accident insurance, and death insurance for civil servants, soldiers of the Indonesian National Armed Forces, and members of the Indonesian National Police.

Paragraph (2)
Is clear.

Paragraph (3)
The term "insurance technical functions" includes actuarial functions, product development and monitoring, underwriting, and claims.

Paragraph (4)
Is clear.

Paragraph (5)
Is clear.

Article 23
Paragraph (1)
The term "executive officials" refers to officials who are directly responsible to the Board of Directors or officials who have significant influence over policies and/or operations related to the implementation of compliance functions.

Paragraph (2)
Is clear.

Paragraph (3)
Is clear.

Article 24
Letter a
Is clear.

Letter b
Is clear.

Letter c
Is clear.

Letter d
Is clear.

Letter e
Is clear.

Letter f
Is clear.

Letter g
The term "complete" means containing all elements of the report and not omitting material information or facts.

Article 25
Is clear.

Article 26
Is clear.

Article 27
Paragraph (1)
Board of Directors meetings are adjusted to the needs of the Program Manager, including through the use of teleconferencing technology.

Paragraph (2)
Is clear.

Paragraph (3)
Is clear.

Paragraph (4)
Is clear.

Paragraph (5)
Is clear.

Article 28
Letter a
Is clear.

Letter b
The term "family relationship" refers to family relationships up to the second degree, both vertical and horizontal, including husband and wife, parents-in-law, children-in-law, siblings-in-law, and full/step/adopted siblings of the husband or wife, along with the husband or wife of the respective sibling.

Article 29
Is clear.

Article 30
Is clear.

Article 31
Is clear.

Article 32
Is clear.

Article 33
Is clear.

Article 34
Is clear.

Article 35
Paragraph (1)
Board of Commissioners meetings are adjusted to the needs of the Program Manager, including through the use of teleconferencing technology.

Paragraph (2)
Letter a
Meetings inviting the Board of Directors are conducted for the purpose of evaluating/setting strategic policies and/or evaluating the realization of the Insurance Company's business plan every quarter.

Letter b
Is clear.

Paragraph (3)
Meeting the 80% (eighty percent) requirement at Board of Commissioners meetings includes attendance via circular resolution.

Paragraph (4)
Is clear.

Paragraph (5)
Is clear.

Paragraph (6)
Is clear.

Paragraph (7)
Is clear.

Paragraph (8)
Is clear.

Article 36
Is clear.

Article 37
Is clear.

Article 38
Is clear.

Article 39
Letter a
Is clear.

Letter b
Regulatory provisions applicable to Program Managers include Government Regulations, Minister of Finance Regulations, Minister of State-Owned Enterprises Regulations, and Minister of Defense Regulations.

Letter c
Is clear.

Letter d
Is clear.

Letter e
Is clear.

Letter f
Is clear.

Article 40
Is clear.

Article 41
Paragraph (1)
Is clear.

Paragraph (2)
Important matters that can affect and/or endanger participant interests include material transactions and changes in investment portfolios.

Paragraph (3)
Is clear.

Article 42
Is clear.

Article 43
Paragraph (1)
Is clear.

Paragraph (2)
Is clear.

Paragraph (3)
Is clear.

Paragraph (4)
Is clear.

Paragraph (5)
The term "regulatory provisions" refers to:
a. Minister of Finance Regulations regarding procedures for managing contributions and reporting on the old-age savings program, work accident insurance, and death insurance for soldiers of the Indonesian National Armed Forces, members of the Indonesian National Police, and civil servants within the Ministry of Defense and Indonesian National Police; and b. Minister of Finance Regulations regarding the management of accumulated pension contributions for civil servants, state officials, soldiers of the Indonesian National Armed Forces, and members of the Indonesian National Police.

Paragraph (6)
Letter a
Is clear.

Letter b
The term "related executive officials" refers to officials who are directly responsible to the Board of Directors or have significant influence over policies and/or operations related to the implementation of Risk Management, including division heads, office heads, heads of Risk Management units, heads of compliance units, and heads of internal audit units.

Paragraph (7)
Is clear.

Paragraph (8)
Letter a
Is clear.

Letter b
Is clear.

Letter c
Business decisions deviating from normal procedures include exceeding business expansion significantly compared to the business plan and taking positions or risk exposures that deviate from established limits and exceed capital capacity to absorb Risk.

Article 44
Is clear.

Article 45
Paragraph (1)
Program Managers determine an appropriate organizational structure suitable for conditions, including financial capacity and human resources.

Paragraph (2)
The concept of independence is reflected in:
a. separation of functions and duties between Risk Management functions and business and operational (risk-taking) functions and internal control functions; and b. decision-making processes that are impartial or do not favor specific business and operational functions or ignore other operational functions.

Paragraph (3)
Is clear.

Paragraph (4)
The authority and responsibility of the Risk Management function are adjusted to business objectives and business complexity.

Letter a
Risk identification includes coordination with all units within the Program Manager.

Letter b
Is clear.

Letter c
Is clear.

Letter d
Overall Risk, known as "composite risk," is Risk faced by considering all types of Risk.

Testing using assumptions of abnormal conditions, known as "stress testing," is testing of Risk positions using several assumptions of abnormal conditions to determine the impact of such abnormal conditions on the Risk position of the Program Manager.

Testing using historical data, known as "back testing," is testing of Risk positions using historical data to determine the effectiveness of Risk Management.

Letter e
Reviews are conducted based on internal audit findings and/or developments in international Risk Management practices.

Letter f
Included in such reviews are assessments of the Program Manager's ability to develop or expand business activities and reviews of proposed system and procedure changes.

Letter g
Models for internal use are known as internal models.

Letter h
Recommendations include recommendations related to the size or maximum Risk exposure that must be maintained by the Program Manager.

Letter i
Risk Profile is a comprehensive overview of the magnitude of potential Risk inherent in the entire portfolio or exposure of the Program Manager. The frequency of report submission can be increased if market conditions change rapidly.

Article 46
The frequency of submitting Risk exposure information is adjusted to the characteristics of the type of Risk.

Article 47
Is clear.

Article 48
Is clear.

Article 49
Paragraph (1)
Is clear.

Paragraph (2)
Is clear.

Paragraph (3)
Is clear.

Paragraph (4)
Is clear.

Paragraph (5)
Is clear.

Paragraph (6)
Internal control supervision reports include activities for conducting regular internal audits, results of internal audit findings, and progress in resolving recommendations regarding internal audit findings.

Article 50
Is clear.

Article 51
Is clear.

Article 52
Is clear.

Article 53
Is clear.

Article 54
Is clear.

Article 55
Is clear.

Article 56
Is clear.

Article 57
Is clear.

Article 58
Is clear.

Article 59
Is clear.

Article 60
Paragraph (1)
Is clear.

Paragraph (2)
Is clear.

Paragraph (3)
The term "regulatory provisions" refers to:
a. Minister of Finance Regulations regarding procedures for managing contributions and reporting on the old-age savings program, work accident insurance, and death insurance for soldiers of the Indonesian National Armed Forces, members of the Indonesian National Police, and civil servants within the Ministry of Defense and Indonesian National Police; and b. Minister of Finance Regulations regarding the management of accumulated pension contributions for civil servants, state officials, soldiers of the Indonesian National Armed Forces, and members of the Indonesian National Police.

Article 61
Is clear.

Article 62
Paragraph (1)
Monitoring and review of investment placement portfolios consist of investment performance, including the underlying assets.

Paragraph (2)
Examples of portfolio improvement steps include changing the investment portfolio and terminating cooperation with third parties managing the investment portfolio.

Paragraph (3)
Is clear.

Article 63
Is clear.

Article 64
Is clear.

Article 65
Is clear.

Article 66
Paragraph (1)
Is clear.

Paragraph (2)
Letter a
Explanation regarding the achievement of the Business Plan includes the focus and priority of achieving the Business Plan.

Letter b
Explanation regarding deviation from the realization of the Business Plan includes an explanation of the magnitude of the deviation and obstacles faced.

Letter c
Follow-up actions regarding the achievement of the Business Plan include efforts to improve the realization of the Business Plan.

Letter d
Is clear.

Letter e
Other information includes reports on the realization of changes in office networks and reports on the realization of changes in capital.

Paragraph (3)
Is clear.

Article 67
Paragraph (1)
Is clear.

Paragraph (2)
The term "reliable" refers to a reporting system using technology appropriate to the operational needs of the Program Manager.

Article 68
Paragraph (1)
Letter a
Is clear.

Letter b
Is clear.

Letter c
The term "material transaction" refers to a transaction with a value of 20% (twenty percent) or more of the Program Manager's equity.

Letter d
The term "significant decline in investment performance" refers to a decline for each type of investment and/or total investment that is greater than 50% (fifty percent) of the previous period's performance.

Letter e
Is clear.

Letter f
Is clear.

Letter g
Is clear.

Paragraph (2)
Is clear.

Paragraph (3)
Is clear.

Article 69
Paragraph (1)
Heirs are:
a. wife or husband if the participant dies leaving a wife or husband; b. children if the participant dies leaving no wife or husband;
c. parents if the participant dies leaving no wife, husband, or children; or
d. other heirs according to regulatory provisions if the deceased participant leaves no wife, husband, children, or parents.

Paragraph (2)
Is clear.

Article 70
Paragraph (1)
Is clear.

Paragraph (2)
The term "periodically" means providing information at least 1 (one) time in 1 (one) year.

Article 71
Is clear.

Article 72
Is clear.

Article 73
Paragraph (1)
The term "charitable purposes" includes religious activities and corporate social responsibility.

Paragraph (2)
Is clear.

Article 74
Is clear.

Article 75
Is clear.

Article 76
Is clear.

Article 77
Is clear.

Article 78
Paragraph (1)
The implementation of Risk Management includes the implementation of Information Technology Risk Management.

Paragraph (2)
The Risk Management function includes Information Technology Risk Management.

Paragraph (3)
Letter a
Is clear.

Letter b
Risk as regulated in these provisions is based on the conditions of the Program Manager, types of Risk faced by the Program Manager including Strategic Risk, Operational Risk, Insurance Risk, Credit Risk, Market Risk, Liquidity Risk, Legal Risk, Compliance Risk, and Reputational Risk.

Letter c
Is clear.

Letter d
Is clear.

Paragraph (4)
Is clear.

Article 79
The term "each level of position" includes the Board of Directors and Board of Commissioners.

Article 80
Paragraph (1)
Letter a
Risk Management policies and strategies include the setting and approval of Risk limits, whether for overall Risk (composite), per type of Risk, per functional activity, or per material/significant transaction.

Letter b
Is clear.

Letter c
Transactions requiring Board of Directors approval include transactions that have exceeded the authority of officials one level below the Board of Directors, in accordance with internal policies and procedures.

Letter d
Developing a Risk Management culture includes adequate communication to all levels of the organization regarding the importance of effective internal controls.

Letter e
Improving human resource competence includes continuous education and training programs regarding the implementation of Risk Management.

Letter f
The term "independent" includes the separation of functions between the Risk Management function that identifies, measures, controls, and monitors Risk and the function that conducts and completes business and operational activities.

Letter g
Periodic reviews are intended to anticipate changes in external and internal factors.

Paragraph (2)
The frequency of periodic evaluation is adjusted to the needs of the Program Manager, considering size and complexity.

Paragraph (3)
Is clear.

Paragraph (4)
Is clear.

Paragraph (5)
Inherent Risk is known as inherent risk.

Article 81
Paragraph (1)
Letter a
Is clear.

Letter b
Is clear.

Letter c
The term "transactions and Risk limits requiring Board of Commissioners approval" refers to business or operational activities that have exceeded the authority of the Board of Directors to decide on such matters, in accordance with internal policies and procedures.

Paragraph (2)
Is clear.

Paragraph (3)
Is clear.

Paragraph (4)
Is clear.

Article 82
The setting and formulation of Risk Management policies include formulating Risk Management strategies to ensure that:
a. The Program Manager maintains Risk exposure in accordance with internal policies and procedures and regulatory provisions and other regulations; and b. The Program Manager is managed by human resources with knowledge, experience, and expertise in Risk Management commensurate with business complexity. The formulation of Risk Management strategies is conducted by considering financial conditions, organizational conditions, and Risk arising from changes in external and internal factors.

Letter a
Is clear.

Letter b
Is clear.

Letter c
The level of Risk to be taken (risk appetite) considers the experience possessed by the Program Manager in managing Risk and capital capacity to absorb Risk. Risk tolerance is the potential loss that can be absorbed by capital.

Letter d
The setting of Risk rating assessments serves as the basis for the Program Manager to categorize Risk ratings.

Letter e
Contingency planning is known as contingency plan. Worst case scenario is known as worst case scenario.

Letter f
Is clear.

Article 83
Paragraph (1)
Is clear.

Paragraph (2)
Letter a
Is clear.

Letter b
The term "periodically" means at least 1 (one) time in 1 (one) year or a higher frequency, depending on the type of Risk, needs, and development of the Program Manager.

Letter c
The term "adequate documentation" refers to written, complete documentation that facilitates audit trails for the internal control of the Program Manager in a database conducted monthly.

Paragraph (3)
Is clear.

Article 84
Paragraph (1)
The term "Risk factor" refers to various parameters that influence Risk exposure.
The term "material Risk factor" refers to Risk factors, both quantitative and qualitative, that significantly influence the financial condition of the Program Manager.

Paragraph (2)
Letter a
Is clear.

Letter b
The term "informative" means easy to understand.

Letter c
The term "having competence in Risk Management" includes having expertise certificates and proof of having attended training in Risk Management.

Article 85
Paragraph (1)
Risk identification processes can be based on the Program Manager's past loss experience.

Paragraph (2)
To implement Risk measurement, Program Managers can use various approaches, both qualitative and quantitative, adjusted to business objectives and the complexity of the Program Manager's business.

Letter a
The term "periodically" means at least 1 (one) time in 6 (six) months or a higher frequency, depending on the development of the Program Manager's business and external conditions directly affecting the Program Manager's condition.

Letter b
The term "changes in Program Manager's business activities and material Risk factors" refers to changes in Program Manager's business activities and Risk factors that can influence the financial condition of the Program Manager.

Paragraph (3)
Risk control can be conducted through hedging, Risk mitigation methods, and capital addition to absorb potential losses.

Paragraph (4)
Letter a
Evaluation of Risk exposure is conducted through monitoring and reporting of material Risk or Risk impacting the capital condition of the Program Manager, based on potential Risk assessments using historical trends.

Letter b
Is clear.

Article 86
Paragraph (1)
The term "having competence in Risk Management information systems" includes having expertise certificates and proof of having attended training in Risk Management information systems.

Paragraph (2)
Letter a
Risk exposure reports or information include quantitative and qualitative exposure, overall (composite) as well as details per type of Risk and per type of functional activity.

Letter b
Is clear.

Letter c
Is clear.

Paragraph (3)
The term "regularly" refers to the frequency of Reports or information submitted to the Board of Directors adjusted to the needs of the Program Manager.

Article 87
Is clear.

Article 88
Paragraph (1)
Is clear.

Paragraph (2)
Letter a
Is clear.

Letter b
Is clear.

Letter c
Complete, accurate, relevant, and timely financial and management information is needed for appropriate and accountable decision-making, and communicated to interested parties.

Letter d
Effectiveness and efficiency in business and operational activities are needed to protect assets and other resources from related Risk.

Letter e
Effective Risk culture is intended to identify weaknesses and deviations earlier and continuously reassess the fairness of existing policies and procedures.

Article 89
Is clear.

Article 90
Is clear.

Article 91
Is clear.

Article 92
Paragraph (1)
Letter a
Is clear.

Letter b
Is clear.

Letter c
Is clear.

Letter d
Is clear.

Letter e
The term "regulatory provisions" includes Minister of Finance Regulations and Minister of Defense Regulations.

Paragraph (2)
Is clear.

Paragraph (3)
Is clear.

Paragraph (4)
Is clear.

Article 93
Is clear.

Article 94
Is clear.

Article 95
Is clear.

Article 96
Is clear.

Article 97
Is clear.

Article 98
Is clear.

Article 99
Is clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 21/OJK

Lineage: No known changes

Timeline