Financial Services Authority Regulation Number 26 of 2022 Concerning Sharia People's Financing Banks

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 26 OF 2022
CONCERNING
SHARIA PEOPLE'S FINANCING BANKS
BY THE GRACE OF THE ALMIGHTY GOD
THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that to encourage the optimal and sustainable growth of the national economy based on values of justice, togetherness, equity, and benefit in accordance with Sharia principles, policies are needed to support the enhancement of the competitiveness and contribution of the Sharia People's Financing Bank industry to the regional economy; b. that to enhance the role of the Sharia People's Financing Bank industry, efforts are needed to strengthen institutions through strengthening capital and competitiveness from the early stages of establishment, in line with policies to encourage consolidation, institutional restructuring, and increased owner commitment, improved quality and function of management, strengthening of the office network function, refinement of the license revocation mechanism upon shareholder request, and refinement of institutional licensing procedures to be more effective and efficient;
c. that Financial Services Authority Regulation Number 3/POJK.03/2016 concerning Sharia People's Financing Banks is no longer in line with the dynamic development of banking, so updates are needed in several aspects of regulations to accommodate the enhancement of the competitiveness and contribution of Sharia People's Financing Banks;
d. that based on the considerations referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning Sharia People's Financing Banks;

Recalling:

Law Number 21 of 2008 concerning Sharia Banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette of the Republic of Indonesia Number 4867);
Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);

DECIDING:
Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING SHARIA PEOPLE'S FINANCING BANKS.

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

Sharia People's Financing Bank, hereinafter abbreviated as BPRS, is a Sharia People's Financing Bank in accordance with the Law concerning Sharia banking.
Sharia Commercial Bank, hereinafter abbreviated as BUS, is a Sharia Commercial Bank in accordance with the Law concerning Sharia banking.
Conventional Commercial Bank, hereinafter abbreviated as BUK, is a conventional commercial bank in accordance with the Law concerning Sharia banking.
People's Credit Bank, hereinafter abbreviated as BPR, is a People's Credit Bank in accordance with the Law concerning Sharia banking.
Sharia Business Unit, hereinafter abbreviated as UUS, is a Sharia Business Unit in accordance with the Law concerning Sharia banking.
Office Network is a BPRS office comprising branch offices, cash offices, cash service activities, and electronic banking devices.
Branch Office is a BPRS office that is directly responsible to the BPRS head office, with a clear business address where the Branch Office conducts its business.
Cash Office is a BPRS office that provides cash services, excluding the provision of financing, to assist the head office, with a clear business address where the Cash Office conducts its business.
Cash Service Activity is an activity comprising mobile cash, payment points, and service activities using electronic banking devices.
Mobile Cash is a Cash Service Activity to serve the public by moving around using transportation or at specific locations on a non-permanent basis.
Payment Point is a Cash Service Activity to serve the public in the form of payment services or receipt of payments through an agreement between the BPRS and other parties at a specific location.
Electronic Banking Device, hereinafter abbreviated as PPE, is a banking service activity to serve the public using electronic machine facilities but excluding the provision of giro instruments, located both inside and outside the BPRS office.
Sharia Principle is the principle of Islamic law in banking activities based on fatwas issued by an institution having authority to issue fatwas in the field of Sharia.
General Meeting of Shareholders, hereinafter abbreviated as GMS, is the GMS in accordance with the Law concerning limited liability companies.
Controlling Shareholder, hereinafter abbreviated as CS, is a legal entity, individual, and/or business group that holds 25% (twenty-five percent) or more of the issued shares and voting rights of the company or BPRS, or holds less than 25% (twenty-five percent) of the issued shares and voting rights of the company or BPRS but can be proven to have controlled the BPRS, directly or indirectly.
Board of Directors is the BPRS organ authorized and fully responsible for managing the BPRS for the benefit of the BPRS, in accordance with the purpose and objectives of the BPRS, and representing the BPRS, both in and out of court, in accordance with the articles of association.
Board of Commissioners is the BPRS organ tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors.
Sharia Supervisory Board, hereinafter abbreviated as SSAB, is a board tasked with providing advice and suggestions to the Board of Directors and supervising BPRS activities to ensure compliance with Sharia Principles.
Executive Officer is a BPRS officer who reports directly to members of the Board of Directors or has significant influence over BPRS policy and/or operations.
Working Day is the working day of the Financial Services Authority.

CHAPTER II
ESTABLISHMENT OF BPRS
Article 2
BPRS must have the legal status of a limited liability company.

Article 3
(1) BPRS is established based on:
a. application by prospective CS; b. change of business license from BUS to BPRS;
c. change of business license from BUK to BPRS;
d. change of business license from BPR to BPRS, implemented in accordance with Financial Services Authority Regulations concerning the change of conventional bank business activities to Sharia banks; or e. change of business license from Sharia microfinance institutions to BPRS, implemented in accordance with Financial Services Authority Regulations concerning the transformation of conventional microfinance institutions to People's Credit Banks and Sharia microfinance institutions to Sharia People's Financing Banks. (2) BPRS as referred to in paragraph (1) conducts business activities after obtaining a license from the Financial Services Authority.

Article 4
(1) BPRS is established and/or owned by:
a. Indonesian citizens and/or Indonesian legal entities whose entire owners are Indonesian citizens; b. local governments; or
c. two or more parties as referred to in letters a and b.
(2) In the event that an Indonesian legal entity as referred to in paragraph (1) letter a is submitted as a prospective CS, the aforementioned legal entity must have operated for a period of time in accordance with Financial Services Authority Regulations concerning the assessment of competence and propriety for principal parties of financial service institutions. (3) Based on specific considerations, the Financial Services Authority may determine a different operational period for legal entities as referred to in paragraph (2).

Article 5
(1) BPRS must have articles of association that meet:
a. article of association requirements in accordance with applicable laws and regulations; and b. contain statements regarding:

additional paid-up capital resulting in a change of CS;
change of share ownership resulting in a change of CS; and
appointment of members of the Board of Directors, members of the Board of Commissioners, and members of the SSAB,
taking effect after obtaining approval from the Financial Services Authority.
(2) BPRS that does not meet the provisions as referred to in paragraph (1) letter b is required to adjust the scope of the articles of association at the first GMS held after the entry into force of this Financial Services Authority Regulation.

Article 6
(1) The paid-up capital for the establishment of BPRS as referred to in Article 3 paragraph (1) letter a is set at a minimum of:
a. IDR 75,000,000,000.00 (seventy-five billion rupiah), for BPRS established in zone 1; b. IDR 35,000,000,000.00 (thirty-five billion rupiah), for BPRS established in zone 2; and
c. IDR 15,000,000,000.00 (fifteen billion rupiah), for BPRS established in zone 3.
(2) Based on specific considerations, the Financial Services Authority has the authority to determine a higher paid-up capital amount for BPRS than the amount referred to in paragraph (1).
(3) The paid-up capital for the establishment of BPRS as referred to in paragraph (1) must be used for working capital of at least 50% (fifty percent).
(4) The BPRS establishment zone distribution as referred to in paragraph (1) is determined based on economic potential and the level of competition of financial institutions in the respective province, referring to the List of BPRS Establishment Zones contained in Appendix Part A, which is an integral part of this Financial Services Authority Regulation.

Article 7
(1) The paid-up capital as referred to in Article 6 paragraph (1) or paragraph (2) must be placed in the form of a deposit at a BUS and/or UUS in Indonesia or another BPRS in the name of "Board of Commissioners of the Financial Services Authority q.q. name of prospective shareholder and/or CS of BPRS" with the note for the establishment of BPRS, and its withdrawal can only be carried out after obtaining approval from the Financial Services Authority. (2) The placement of paid-up capital in the form of a deposit as referred to in paragraph (1) is carried out in full for the amount of paid-up capital required according to the zone at the time of submitting the application for principle approval for the establishment of BPRS.

Article 8
(1) BPRS violating the provisions as referred to in Article 5 paragraph (2) and/or Article 6 paragraph (3) is subject to administrative sanctions in the form of a written reprimand.
(2) In the event that BPRS has been subject to administrative sanctions as referred to in paragraph (1) and continues to violate the provisions as referred to in Article 5 paragraph (2) and/or Article 6 paragraph (3), BPRS is subject to administrative sanctions in the form of a downgrade of the BPRS health level.

CHAPTER III
LICENSING OF BPRS ESTABLISHMENT
Part One
Application for Establishment of BPRS
Paragraph 1
Principle Approval
Article 9
The establishment of BPRS by prospective CS as referred to in Article 3 paragraph (1) letter a is conducted in 2 (two) stages:
a. principle approval; and b. business license.

Paragraph 1
Principle Approval
Article 10
(1) The application to obtain principle approval as referred to in Article 9 letter a is submitted by at least 1 (one) prospective CS to the Financial Services Authority.
(2) The application as referred to in paragraph (1) is accompanied by the Document Requirements for Application for Principle Approval for Establishment of BPRS contained in Appendix Part B, which is an integral part of this Financial Services Authority Regulation. (3) In the event that the prospective shareholder of BPRS is a local government, the statement letter from the prospective shareholder contained in Appendix Part B may be replaced with a regional head decision letter containing a statement that the source of capital contribution funds has been budgeted in the Regional Revenue and Expenditure Budget and has been approved by the Regional House of Representatives.

Article 11
(1) The Financial Services Authority processes the application and provides approval or rejection of the principle approval application within a maximum of 30 (thirty) Working Days since the application accompanied by the required documents is received in complete. (2) The time limit as referred to in paragraph (1) does not include the time given to the prospective CS to complete, improve, and/or update the required documents in the application for principle approval. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts research on the fulfillment of requirements, including:
a. assessment of potential analysis and feasibility; b. assessment of competence and propriety and interviews;
c. research on the source of capital contribution funds; and
d. research on financial performance and fulfillment of provisions on BPRS and/or other financial service institutions owned by the prospective CS.
(4) In addition to the provisions as referred to in paragraph (3), the Financial Services Authority requests the party submitting the application for the establishment of BPRS to present or explain the plan and strategy for the development of BPRS.

Article 12
(1) The Financial Services Authority conducts research on the completeness of requirement documents based on the application submitted as referred to in Article 10 paragraph (2).
(2) In the event that the research on the completeness of documents as referred to in paragraph (1) is incomplete, the Financial Services Authority informs the prospective CS to complete the missing documents and submit them back to the Financial Services Authority within a maximum of 20 (twenty) Working Days since the date of notification from the Financial Services Authority. (3) In the event that the prospective CS does not complete, improve, and/or update the missing documents within the time limit as referred to in paragraph (2), the prospective CS is deemed to have cancelled the application for principle approval. (4) In the event that the submitted application for principle approval documents are deemed complete, the Financial Services Authority informs the prospective CS that the documents are complete and the process of approval or rejection of the application for principle approval as referred to in Article 11 paragraph (1) begins to run from the date of notification.

Article 13
(1) In conducting research on the fulfillment of requirements as referred to in Article 11 paragraph (3), the Financial Services Authority may request additional and/or improved documents from the prospective CS. (2) Additional and/or improved documents as referred to in paragraph (1) are submitted to the Financial Services Authority within a maximum of 30 (thirty) Working Days since the date of notification from the Financial Services Authority. (3) In the event that the prospective CS does not submit additional and/or improved documents within the time limit as referred to in paragraph (2), the application for principle approval for the establishment of BPRS is rejected.

Article 14
(1) Principle approval as referred to in Article 11 is valid for a period of 1 (one) year from the date of principle approval is granted and cannot be extended.
(2) Prospective CS who have obtained principle approval are prohibited from conducting business activities as BPRS before obtaining a business license from the Financial Services Authority.
(3) If by the time limit as referred to in paragraph (1) the prospective CS who has obtained principle approval does not submit a business license application to the Financial Services Authority, the principle approval granted is declared void and invalid.

Paragraph 2
Business License
Article 15
The application to obtain a business license as referred to in Article 9 letter b is submitted to the Financial Services Authority accompanied by the Document Requirements and Document Checklist for Application for Principle Approval for Business License of BPRS contained in Appendix Part C, which is an integral part of this Financial Services Authority Regulation.

Article 16
(1) The Financial Services Authority processes the application and provides approval or rejection of the business license application within a maximum of 20 (twenty) Working Days since the application accompanied by the required documents is received in complete. (2) The time limit as referred to in paragraph (1) does not include the time given to BPRS to complete, improve, and/or update the required documents in the application for business license. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts research on the fulfillment of requirements, including:
a. assessment of competence and propriety and interviews, if changes occur; b. operational readiness; and
c. research on financial performance and fulfillment of provisions on BPRS and/or other financial service institutions owned by the prospective CS.

Article 17
(1) The Financial Services Authority conducts research on the completeness of requirement documents based on the approval application as referred to in Article 15.
(2) In the event that the research on the completeness of documents as referred to in paragraph (1) is incomplete, the Financial Services Authority informs BPRS to complete the missing documents and submit them back to the Financial Services Authority within a maximum of 20 (twenty) Working Days since the date of notification from the Financial Services Authority. (3) In the event that BPRS cannot complete, improve, and/or update the missing documents within the time limit as referred to in paragraph (2), the business license application is declared rejected and the principle approval previously granted by the Financial Services Authority is declared void and invalid. (4) In the event that the submitted business license application documents are deemed complete, the Financial Services Authority informs BPRS that the documents are complete and the process of providing approval or rejection of the business license application as referred to in Article 16 paragraph (1) begins to run from the date of notification.

Article 18
(1) In conducting research on the fulfillment of requirements as referred to in Article 16 paragraph (3), the Financial Services Authority may request additional and/or improved documents submitted through notification to BPRS. (2) Additional and/or improved documents as referred to in paragraph (1) are submitted to the Financial Services Authority within a maximum of 30 (thirty) Working Days since the date of notification from the Financial Services Authority. (3) In the event that BPRS does not submit additional and/or improved documents within the time limit as referred to in paragraph (2), the business license application is declared rejected and the principle approval previously granted by the Financial Services Authority is declared void and invalid.

Article 19
(1) BPRS that has obtained a business license from the Financial Services Authority must conduct business activities within a maximum of 40 (forty) Working Days from the date the business license is issued. (2) The business activities as referred to in paragraph (1) are activities in carrying out the banking intermediation function of collecting funds and distributing funds. (3) BPRS must report business activities as referred to in paragraph (1) to the Financial Services Authority within a maximum of 10 (ten) Working Days since the date of implementation of business activities using a sample letter referring to the format contained in Appendix Part D, which is an integral part of this Financial Services Authority Regulation. (4) In the event that BPRS does not conduct business activities within the time limit as referred to in paragraph (1), the business license previously granted to BPRS is declared void and invalid.

Article 20
BPRS that has obtained a business license from the Financial Services Authority must clearly state the phrase "Sharia People's Financing Bank", "Sharia People's Credit Bank" or "BPRS" in the writing of its name.

Part Two
Change of Business License from BUS or BUK to Business License of BPRS
Article 21
(1) The establishment of BPRS originating from the change of business license from BUS to BPRS as referred to in Article 3 paragraph (1) letter b can be carried out based on:
a. initiative from BUS; or b. decision of the Financial Services Authority.
(2) The establishment of BPRS originating from the change of business license from BUK to BPRS as referred to in Article 3 paragraph (1) letter c can be carried out based on the initiative from BUK.
(3) The granting of a business license for BPRS originating from the change of business license from BUS or BUK as referred to in paragraph (1) or paragraph (2) is carried out simultaneously with the revocation of the business license by the Financial Services Authority. (4) BUS or BUK that has obtained a business license as BPRS as referred to in paragraph (3) is required to adjust all forms and business activities to BPRS within a maximum of 1 (one) year from the date the BPRS business license is issued. (5) In the event that based on the Financial Services Authority's assessment the adjustment as referred to in paragraph (4) cannot be carried out within a period of 1 (one) year, the Financial Services Authority may determine a different time limit based on specific considerations.

Paragraph 1
Change of Business License Based on Initiative from BUS or BUK
Article 22
The application to obtain a business license as BPRS as referred to in Article 21 paragraph (1) letter a or Article 21 paragraph (2) is submitted by BUS or BUK to the Financial Services Authority, accompanied by the Document Requirements for Approval of Change of Business License from Commercial Bank to BPRS contained in Appendix Part E, which is an integral part of this Financial Services Authority Regulation.

Article 23
(1) The Financial Services Authority processes the application and provides approval or rejection of the application for change of business license from BUS or BUK to business license of BPRS as referred to in Article 22 within a maximum of 30 (thirty) Working Days since the application accompanied by the required documents is received in complete. (2) The time limit as referred to in paragraph (1) does not include the time given to BUS or BUK to complete, improve, and/or update the required documents in the application for change of business license from BUS or BUK to business license of BPRS. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts research on the truthfulness of the fulfillment of requirements, including:
a. assessment of preparation documents and action plans; b. assessment of competence and propriety for prospective members of the Board of Directors and prospective members of the Board of Commissioners in accordance with Financial Services Authority Regulations concerning the assessment of competence and propriety for principal parties of financial service institutions, if there are changes in the composition of members of the Board of Directors and/or members of the Board of Commissioners; and
c. interviews with prospective SSAB members, if there are changes in the composition of the SSAB.

Article 24
(1) The Financial Services Authority conducts research on the completeness of requirement documents for the application as referred to in Article 22.
(2) In the event that the research on the completeness of documents as referred to in paragraph (1) is incomplete, BUS or BUK is required to complete and submit the missing documents within a maximum of 20 (twenty) Working Days since the date of notification from the Financial Services Authority.

(3) In the event that the application documents for changing the business license of a BUS or BUK into a BPRS business license submitted are assessed as complete, the Financial Services Authority notifies the BUS or BUK that the documents are complete and the approval or rejection process for the application to change the business license of the BUS or BUK into a BPRS business license as referred to in Article 23 paragraph (1) begins to run from the date of notification.

Article 25
(1) In conducting research on the fulfillment of requirements as referred to in Article 23 paragraph (3), the Financial Services Authority may request additional and/or corrected documents submitted through notification to the BUS or BUK. (2) Additional and/or corrected documents as referred to in paragraph (1) include the correction of the action plan based on the assessment by the Financial Services Authority regarding the formulation of steps, stages, and/or time limits for adjusting the form and business activities that cannot be completed within the established time limit. (3) The BUS or BUK must submit additional and/or corrected documents as referred to in paragraph (2) to the Financial Services Authority at the latest 20 (twenty) Working Days from the date of notification from the Financial Services Authority. (4) In the event that the BUS or BUK does not submit additional and/or corrected documents within the time limit as referred to in paragraph (3), the application to change the business license of the BUS or BUK into a BPRS is declared rejected.

Article 26
In the event that the BUS or BUK fulfills all document completeness requirements as referred to in Article 24 and the fulfillment of requirements based on the research results as referred to in Article 25, the Financial Services Authority revokes the business license of the BUS or BUK and issues a business license as a BPRS.

Article 27
(1) A BPRS resulting from the change of business license from a BUS or BUK is required to realize the action plan submitted to the Financial Services Authority as referred to in Article 22 within a maximum period of 1 (one) year from the date the BPRS business license is issued, consisting of:
a. changes to the articles of association and ownership status, including the change of status from a public company to a closed company;

b. cessation of BUS or BUK business activities not permitted for BPRS, except for the settlement of rights and obligations; and
c. adjustment of the type and area of the BUS or BUK Office Network not permitted for BPRS.
(2) A BPRS resulting from the change of business license from a BUS or BUK is required to submit a report on the realization of the action plan as referred to in paragraph (1) to the Financial Services Authority every month at the latest on the 10th (ten) of the following month. (3) In the event that based on the Financial Services Authority's assessment of the realization report, the BPRS cannot implement the action plan within the time limit as referred to in paragraph (1), the Financial Services Authority may establish a different time limit based on certain considerations.

Article 28
(1) A BPRS resulting from the change of business license from a BUS or BUK is required to hold a General Meeting of Shareholders (GMS) to amend the articles of association related to the adjustment of the form and business activities of the BUS or BUK into a BPRS as referred to in Article 27 paragraph (1) letter a at the latest 2 (two) months from the date the business license from the Financial Services Authority is issued. (2) A BPRS resulting from the change of business license from a BUS or BUK is required to submit documents to the Financial Services Authority:
a. changes to the articles of association in accordance with applicable legislation; and b. approval of the changes to the articles of association as referred to in letter a to the competent agency, at the latest 10 (ten) Working Days from the date of the approval letter for the changes to the articles of association from the competent agency. (3) The revocation of the business license as a BUS or BUK and the issuance of a business license as a BPRS as referred to in Article 26 takes effect from the date of approval by the competent agency or the date established in the approval of the competent agency as referred to in paragraph (2) letter b.

Article 29
(1) A BPRS resulting from the change of business license from a BUS or BUK is required to announce to the public and all customers the change of business license at the latest 10 (ten) Working Days from the date the business license as a BPRS becomes effective as referred to in Article 28 paragraph (3). (2) The announcement as referred to in paragraph (1) must be carried out through:

a. written announcement in all Office Networks in strategic places; b. newspapers with national circulation and in the province where the Office Network of the BPRS resulting from the change of business license from the BUS or BUK is located; and
c. online media through the website and/or social media of the BPRS resulting from the change of business license from the BUS or BUK.
(3) A BPRS resulting from the change of business license from a BUS or BUK is required to submit proof of announcement as referred to in paragraph (1) to the Financial Services Authority at the latest 10 (ten) Working Days from the date of the announcement.

Article 30
(1) A BPRS resulting from the change of business license from a BUS or BUK is required to cease business activities as a BUS or BUK as referred to in Article 27 paragraph (1) letter b, including:
a. giro savings and related giralization activities; b. business activities in foreign currency, except for foreign currency exchange activities;
c. issuance of sukuk or bonds for BUK;
d. issuance of sukuk for BUS; e. ownership of securities; f. interbank money market transactions; and g. other business activities not permitted for BPRS.
(2) The cessation of business activities as referred to in paragraph (1) is exempted for BPRS resulting from the change of business license from a BUS or BUK that is settling the remaining portfolio of the BUS or BUK. (3) In settling the remaining portfolio of the BUS or BUK as referred to in paragraph (2), a BPRS resulting from the change of business license from a BUS or BUK is required to settle and/or transfer the rights and obligations of the BUS or BUK.

Article 31
A BPRS resulting from the change of business license from a BUS or BUK is required to adjust the type and area of the BUS or BUK Office Network not permitted for BPRS as referred to in Article 27 paragraph (1) letter c, by:
a. closing, relocating, and/or changing the status of the Office Network in accordance with the type and area permitted for BPRS; and b. ceasing business activities as referred to in Article 30 paragraph (1) at the Office Network of the BPRS resulting from the change of business license from the BUS or BUK.

Article 32
The implementation of the adjustment of business activities and the Office Network of the BUS or BUK into a BPRS as referred to in Article 30 and Article 31 refers to the guidelines contained in Appendix Part F, which is an integral part of this Financial Services Authority Regulation.

Article 33
(1) A BPRS resulting from the change of business license from a BUS or BUK is required to submit a report on the realization of the entire implementation of the action plan as referred to in Article 27 paragraph (1) at the latest 1 (one) month from the end of the adjustment period for all forms and business activities into a BPRS as referred to in Article 21 paragraph (4). (2) In the event that the adjustment period for the form and business activities into a BPRS is established differently, a BPRS resulting from the change of business license from a BUS or BUK is required to submit a report on the realization of the entire implementation of the action plan at the latest 1 (one) month from the end of the period as referred to in Article 27 paragraph (3).

Paragraph 2
Change of Business License of BUS Based on Financial Services Authority Decision

Article 34
(1) The change of business license as referred to in Article 21 paragraph (1) letter b is established in a Financial Services Authority decision notified to the BUS.
(2) The decision to change the business license as referred to in paragraph (1) is given after the Financial Services Authority imposes administrative sanctions and establishes the obligation to adjust the form and business activities in accordance with the Financial Services Authority Regulation regarding the consolidation of commercial banks and/or the Financial Services Authority Regulation regarding written orders for handling bank problems.

Article 35
A BUS established as a BPRS as referred to in Article 34 paragraph (1) is required to submit an action plan for the adjustment of all forms and business activities into a BPRS to the Financial Services Authority at the latest 10 (ten) Working Days from the issuance of the Financial Services Authority decision regarding the revocation of the BUS business license and the issuance of a business license as a BPRS.

Article 36
The provisions as referred to in Article 27 through Article 33 apply mutatis mutandis to the BUS established as a BPRS based on the Financial Services Authority decision.

Article 37
(1) A BPRS that violates the provisions as referred to in Article 19 paragraph (1), Article 20, Article 27 paragraph (1), Article 28 paragraph (1), Article 29 paragraph (1), paragraph (2), Article 30 paragraph (1), paragraph (3), Article 31 and/or Article 35 is subject to administrative sanctions in the form of a written warning. (2) In the event that a BPRS has been subject to administrative sanctions as referred to in paragraph (1) and continues to violate the provisions as referred to in Article 19 paragraph (1), Article 20, Article 29 paragraph (1), and/or paragraph (2), the BPRS is subject to administrative sanctions in the form of a downgrade of the BPRS health level. (3) In the event that a BPRS has been subject to administrative sanctions as referred to in paragraph (1) and continues to violate the provisions as referred to in Article 27 paragraph (1), Article 28 paragraph (1), Article 30 paragraph (1), paragraph (3), Article 31, and/or Article 35, the BPRS is subject to administrative sanctions in the form of:
a. downgrade of the BPRS health level; b. prohibition on expanding business activities and/or Office Networks; and/or
c. temporary cessation of part of the BPRS operational activities; and/or
d. postponement of the right to receive dividends for shareholders.
(4) A BPRS that is late in submitting reports, documents, or proof of announcement as referred to in Article 19 paragraph (3), Article 27 paragraph (2), Article 28 paragraph (2), Article 29 paragraph (3), and/or Article 33 is subject to administrative sanctions in the form of a fine of IDR 100,000.00 (one hundred thousand rupiah) per Working Day and a maximum of IDR 5,000,000.00 (five million rupiah). (5) A BPRS that has been subject to administrative sanctions in the form of a fine as referred to in paragraph (4) remains required to submit reports, documents, or proof of announcement.

Article 38
(1) A BUS or BUK that violates the provisions as referred to in Article 21 paragraph (4) and/or Article 24 paragraph (2) is subject to administrative sanctions in the form of a written warning.
(2) In the event that a BUS or BUK has been subject to administrative sanctions as referred to in paragraph (1), and continues to violate the provisions as referred to in Article 21 paragraph (4) and/or Article 24 paragraph (2), the BUS or BUK is subject to administrative sanctions in the form of:
a. downgrade of health level; b. prohibition on expanding business activities and/or Office Networks; and/or
c. temporary cessation of part of operational activities.

CHAPTER IV
OWNERSHIP AND CAPITAL CHANGES OF BPRS

First Part
General Provisions

Article 39
Every BPRS is required to have at least 1 (one) shareholder with a share ownership percentage of at least 25% (twenty-five percent) in accordance with criteria regarding Principal Stakeholders (PSP) as regulated in the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions.

Article 40
Owners of a BPRS in the form of an Indonesian legal entity as referred to in Article 4 paragraph (1) letter a must meet the requirements:
a. declared as a legal entity based on applicable legislation; and b. having articles of association that regulate management, capital or financing, and the intent and purpose of establishing the legal entity in accordance with the provisions of applicable legislation regarding legal entities.

Article 41
(1) Ownership of a BPRS by a legal entity must meet:
a. for limited liability companies, regional public enterprises, regional holding companies, or cooperatives, at most equal to net own capital and not exceeding the amount permitted for legal entities in accordance with applicable legislation; and b. for other Indonesian legal entities, at most equal to the amount permitted in accordance with applicable legislation. (2) Ownership calculation is done at the establishment of the BPRS and at the time of additional paid-up capital injection by the legal entity as referred to in paragraph (1). (3) In calculating BPRS ownership as referred to in paragraph (2), the BPRS must submit financial reports prepared by the legal entity owner of the BPRS at the time of additional paid-up capital injection with the report position at the end of the previous month. (4) In the event that the legal entity as referred to in paragraph (1) owns at least 25% (twenty-five percent) of BPRS shares, the BPRS is required to submit annual financial reports prepared by the legal entity in accordance with applicable legislation to the Financial Services Authority.

(5) The obligation to submit annual financial reports as referred to in paragraph (4) is carried out by the BPRS at the latest by the end of June after the position year of the report.

Article 42
Sources of funds for BPRS ownership are prohibited:
a. from loans or financing facilities in any form from banks and/or other parties, except from the Regional Revenue and Expenditure Budget; and/or b. from and for the purpose of money laundering and/or terrorism financing as well as proliferation of weapons of mass destruction.

Article 43
(1) BPRS owners are prohibited from withdrawing capital that has been paid up.
(2) In the event that the owner intends to withdraw as a BPRS owner, the owner is required to transfer ownership of their shares to another party in accordance with this Financial Services Authority Regulation. (3) In the event that the other party as referred to in paragraph (2) will become a PSP, the other party must meet the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions.

Article 44
(1) BPRS owners must meet the requirements:
a. having good character and morality; b. committed to complying with applicable legislation;
c. committed to the healthy operational development of the BPRS;
d. having financial capability that can support the business development of the BPRS; e. not included in the list of failed assessments, suspected terrorist lists, terrorist organization lists, and proliferation of weapons of mass destruction financing lists; f. committed to not committing and/or repeating acts and/or actions in accordance with the Financial Services Authority Regulation regarding re-assessment for principal parties of financial service institutions; g. not having non-performing loans and/or non-performing financing; h. not being a controller, member of the board of directors, or member of the board of commissioners of a legal entity that has non-performing loans and/or non-performing financing; and/or
i. never declared bankrupt or never been a shareholder, member of the board of directors, or member of the board of commissioners who was declared guilty causing a company to be declared bankrupt based on a court decision within the last 5 (five) years before nomination.
(2) In the event that the Financial Services Authority receives information that a BPRS shareholder does not meet the requirements as referred to in paragraph (1) letter a, letter e, letter i, and/or in Article 42, the shareholder is required to reduce their share ownership to a maximum of 10% (ten percent) within a time limit of at the latest 6 (six) months from the date of the Financial Services Authority decision establishing the shareholder does not meet the requirements as a BPRS shareholder. (3) BPRS shareholders established based on a Financial Services Authority decision not to meet the requirements as referred to in paragraph (2) then:
a. their share ownership is not recognized; and b. their voting rights are not counted in the GMS quorum, from the date of the Financial Services Authority decision.
(4) In the event that a BPRS shareholder does not transfer ownership of shares within the established time limit as referred to in paragraph (2), dividend payments are suspended until the BPRS shareholder transfers ownership of shares. (5) Parties who can become BPRS PSPs must meet the requirements as referred to in paragraph (1) and financial feasibility requirements in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions. (6) In the event that the BPRS owner is in the form of a legal entity, the requirements as referred to in paragraph (1) apply to the owner, members of the board of directors, members of the board of commissioners, and managers of the legal entity owner of the BPRS.

Article 45
(1) In the event of changes in owners, members of the board of directors, members of the board of commissioners, or managers of the legal entity owner of the BPRS as referred to in Article 44 paragraph (6), the BPRS is required to report the changes to the Financial Services Authority. (2) Reports regarding changes as referred to in paragraph (1) are submitted by the BPRS at the latest 1 (one) month after the change occurs.

Article 46
BPRS is required to administer documents related to share ownership recorded in the articles of association, including the list of shareholders and its changes.

Second Part
Increase in Paid-Up Capital Resulting in Change of PSP

Article 47
(1) BPRS is required to obtain approval from the Financial Services Authority to carry out an increase in paid-up capital that results in a change of PSP.
(2) BPRS carrying out an increase in paid-up capital as referred to in paragraph (1) must place the paid-up capital in the form of deposits at a BUS or UUS in Indonesia, another BPRS, or the BPRS concerned, except those sourced from dividends of the BPRS concerned. (3) The increase in paid-up capital placed in the form of deposits at the BPRS concerned as referred to in paragraph (2) only applies to BPRS that are not under special supervision status. (4) The procedure for increasing paid-up capital as referred to in paragraph (2) is carried out in the form of:
a. deposits at a BUS, UUS, or another BPRS in Indonesia by stating in the name "Commissioners of the Financial Services Authority q.q. name of BPRS", and stating the name of the additional capital depositor and the information that withdrawal can only be done after obtaining approval from the Financial Services Authority; and/or b. deposits at the BPRS concerned by stating in the name "Commissioners of the Financial Services Authority q.q. name of depositor shareholder" and stating the information that withdrawal can only be done after obtaining approval from the Financial Services Authority, with reference to the Document Checklist for Application for Increase in Paid-Up Capital Resulting in Change of PSP contained in Appendix Part G, which is an integral part of this Financial Services Authority Regulation.

Article 48
(1) BPRS submits an application for approval of increase in paid-up capital resulting in change of PSP as referred to in Article 47 paragraph (1) accompanied by proof of capital deposit and refers to the Document Checklist for Application for Increase in Paid-Up Capital Resulting in Change of PSP contained in Appendix Part G, which is an integral part of this Financial Services Authority Regulation. (2) The Financial Services Authority processes the application and provides approval or rejection of the application for increase in paid-up capital as referred to in paragraph (1) at the latest 20 (twenty) Working Days from the date the application accompanied by the required documents is received completely. (3) The time limit as referred to in paragraph (2) does not include the time given to the BPRS to complete, correct, and/or update the documents required in the submission of the application for increase in paid-up capital resulting in change of PSP. (4) In providing approval or rejection as referred to in paragraph (2), the Financial Services Authority conducts research on the fulfillment of requirements, including:
a. research on the source of capital deposits; b. assessment of competence and propriety for prospective PSPs, in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions; and
c. research on the financial performance and fulfillment of regulations at the BPRS and/or other financial service institutions owned by the prospective PSP.

Article 49
(1) The Financial Services Authority conducts research on the completeness of document requirements as referred to in Article 48 paragraph (1).
(2) In the event that based on the research on the completeness of documents as referred to in paragraph (1) is not yet complete, the Financial Services Authority notifies the BPRS to complete the document deficiencies and submit them back to the Financial Services Authority at the latest 10 (ten) Working Days from the date of notification from the Financial Services Authority. (3) In the event that the BPRS does not complete, correct, and/or update the document deficiencies within the time limit as referred to in paragraph (2), the BPRS is considered to have canceled the application for increase in paid-up capital resulting in change of PSP. (4) In the event that the application documents for increase in paid-up capital submitted are assessed as complete, the Financial Services Authority notifies the BPRS that the documents for increase in paid-up capital are complete and the process of providing approval or rejection for the increase in paid-up capital resulting in change of PSP begins to run from the date of notification from the Financial Services Authority.

Article 50
(1) In conducting research on the fulfillment of requirements as referred to in Article 48 paragraph (4), the Financial Services Authority may request additional and/or corrected documents from the BPRS.

(2) Additional and/or corrected documents as referred to in paragraph (1) must be submitted to the Financial Services Authority (OJK) within a maximum of 10 (ten) Working Days from the date of notification from the Financial Services Authority.

(3) In the event that the Islamic Microfinance Bank (BPRS) does not submit additional and/or corrected documents within the period referred to in paragraph (2), the BPRS is deemed to have cancelled the application for paid-in capital increase that results in a change in Principal Shareholder (PSP) status.

(4) The paid-in capital increase by the BPRS is recognized in the calculation of core capital in accordance with the Financial Services Authority Regulation regarding minimum capital provision requirements and minimum core capital fulfillment for Islamic microfinance banks, after the Financial Services Authority's approval of the paid-in capital increase application that results in a change in PSP status.

Article 51

(1) The BPRS must convene a General Meeting of Shareholders (GMS) to approve the paid-in capital increase that results in a change in PSP status, within a maximum of 60 (sixty) Working Days from the date of approval by the Financial Services Authority as referred to in Article 48 paragraph (2).

(2) In the event that the GMS cannot be convened within the period referred to in paragraph (1), the approval by the Financial Services Authority is declared void and invalid.

(3) In the event that the BPRS has already convened the GMS before obtaining approval from the Financial Services Authority, the BPRS may choose not to convene the GMS again to approve the paid-in capital increase that results in a change in PSP status.

(4) The BPRS is required to report the implementation of the paid-in capital increase that results in a change in PSP status to the Financial Services Authority within a maximum of 10 (ten) Working Days after the paid-in capital increase is approved in the GMS as referred to in paragraph (1).

(5) In the event that the GMS has been held before the paid-in capital increase obtains approval from the Financial Services Authority as referred to in paragraph (3), the BPRS is required to report the implementation of the paid-in capital increase that results in a change in PSP status to the Financial Services Authority within a maximum of 10 (ten) Working Days from the date of approval by the Financial Services Authority over the paid-in capital increase submitted by the BPRS.

(6) The report on the implementation of the paid-in capital increase as referred to in paragraph (4) and paragraph (5) is accompanied by:

a. the minutes of the GMS; and

b. ownership data.

(7) The BPRS is required to report the change in paid-in capital as referred to in paragraph (4) and paragraph (5) to the Financial Services Authority within a maximum of 10 (ten) Working Days from the date of approval or the letter of receipt of notification of amendment to the Articles of Association from the competent authority, attached with:

a. a copy of the deed of amendment to the Articles of Association in accordance with applicable regulations; and

b. a letter of approval or letter of receipt of notification of amendment to the Articles of Association as referred to in letter a from the competent authority.

(8) The reporting as referred to in paragraph (7) is accompanied by an application for approval of deposit disbursement to the Financial Services Authority to be recorded as paid-in capital.

Third Section

Changes in Share Ownership Resulting in Changes in PSP Status

Article 52

(1) The BPRS is required to obtain approval from the Financial Services Authority to carry out changes in share ownership that result in a change in PSP status.

(2) In the event that:

a. changes in share ownership as referred to in paragraph (1); or

b. paid-in capital increases as referred to in Article 47 paragraph (1),

result in a takeover, the procedures for changes in share ownership are carried out in accordance with the Financial Services Authority Regulation regarding mergers, consolidations, and takeovers of rural credit banks and Islamic microfinance banks, and the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions.

(3) In the event that:

a. changes in share ownership or paid-in capital increases result in a takeover as referred to in paragraph (2); and

b. the party carrying out the takeover is an individual,

the BPRS being taken over, together with the party carrying out the takeover of the BPRS, must prepare a takeover plan comprising at least an analysis of the current financial capability of the prospective PSP along with a 3 (three) year projection, prepared by an independent consultant in accordance with the Financial Services Authority Regulation regarding mergers, consolidations, and takeovers of rural credit banks and Islamic microfinance banks.

(4) The analysis of the financial capability of the prospective PSP as referred to in paragraph (3) may consist of an asset growth plan or the prospective individual PSP's funding readiness over the next 3 (three) years, prepared by a party with the ability to prepare financial analyses.

(5) The analysis of the financial capability of the prospective PSP as referred to in paragraph (4) must demonstrate the prospective PSP's financial capability to provide capital support to the BPRS in order to maintain the continuity of the BPRS's business.

Article 53

(1) The BPRS submits an application for approval of changes in share ownership that result in a change in PSP status as referred to in Article 52 paragraph (1), accompanied by requirement documents referring to the Checklist of Documents for Application for Approval of Changes in Share Ownership Resulting in Changes in PSP status contained in Appendix Part H, which is an integral part of this Financial Services Authority Regulation.

(2) The Financial Services Authority processes the application and provides approval or rejection of the application for changes in share ownership as referred to in paragraph (1) within a maximum of 20 (twenty) Working Days from the date the application accompanied by the required documents is received in complete form.

(3) The time period as referred to in paragraph (2) does not include the time given to the BPRS to complete, correct, and/or update the documents required in the submission of the application for approval of changes in share ownership that result in changes in PSP status.

(4) In providing approval or rejection as referred to in paragraph (2), the Financial Services Authority conducts an examination of the fulfillment of requirements, including:

a. examination of the source of funds for the transfer of shares;

b. assessment of the competence and propriety of the prospective PSP in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions; and

c. examination of the financial performance and fulfillment of BPRS regulations and/or regulations for other financial service institutions owned by the prospective PSP.

Article 54

(1) The Financial Services Authority conducts an examination of the completeness of the requirement documents for the application as referred to in Article 53 paragraph (1).

(2) In the event that, based on the examination of the completeness of documents as referred to in paragraph (1), the documents are not yet complete, the Financial Services Authority notifies the BPRS to complete the missing documents and resubmit them to the Financial Services Authority within a maximum of 10 (ten) Working Days from the date of notification from the Financial Services Authority.

(3) In the event that the BPRS does not complete, correct, and/or update the missing documents within the time limit as referred to in paragraph (2), the BPRS is deemed to have cancelled the application for approval of changes in share ownership that result in a change in PSP status.

(4) In the event that the application documents for approval of changes in share ownership submitted are assessed to be complete, the Financial Services Authority notifies the BPRS that the documents are complete and the process of providing approval or rejection for the application for approval of changes in share ownership that result in changes in PSP status begins to run from the date of notification from the Financial Services Authority.

Article 55

(1) In conducting the examination of the fulfillment of requirements as referred to in Article 53 paragraph (4), the Financial Services Authority may request additional and/or corrected documents from the BPRS.

(2) Additional and/or corrected documents as referred to in paragraph (1) must be submitted to the Financial Services Authority within a maximum of 10 (ten) Working Days from the date of notification from the Financial Services Authority.

(3) In the event that the BPRS does not submit additional and/or corrected documents within the period as referred to in paragraph (2), the BPRS is deemed to have cancelled the application for approval of changes in share ownership that result in a change in PSP status.

Article 56

(1) The BPRS must convene a General Meeting of Shareholders (GMS) to approve changes in share ownership that result in a change in PSP status as referred to in Article 53 paragraph (2) within a maximum of 60 (sixty) Working Days from the date of approval by the Financial Services Authority.

(2) In the event that the GMS cannot be convened within the period as referred to in paragraph (1), the approval by the Financial Services Authority is declared void and invalid.

(3) In the event that the BPRS has already convened the GMS before obtaining approval from the Financial Services Authority, the BPRS may choose not to convene the GMS again to approve changes in share ownership that result in a change in PSP status.

(4) The BPRS is required to report the implementation of changes in share ownership that result in a change in PSP status to the Financial Services Authority within a maximum of 10 (ten) Working Days after changes in share ownership are approved in the GMS as referred to in paragraph (1).

(5) In the event that the GMS has been held before changes in share ownership obtain approval from the Financial Services Authority as referred to in paragraph (3), the BPRS is required to report the implementation of changes in share ownership that result in a change in PSP status to the Financial Services Authority within a maximum of 10 (ten) Working Days from the date of approval by the Financial Services Authority over the changes in share ownership submitted by the BPRS.

(6) The report on the implementation of changes in share ownership as referred to in paragraph (4) and paragraph (5) is accompanied by:

a. the minutes of the GMS; and

b. ownership data.

(7) The BPRS is required to report the implementation of changes in share ownership that result in a change in PSP status to the Financial Services Authority within a maximum of 10 (ten) Working Days from the date of the letter of receipt of notification of data changes from the competent authority, attached with:

a. a copy of the deed of changes in share ownership; and

b. a letter of receipt of notification of data changes as referred to in letter a from the competent authority.

Fourth Section

Paid-in Capital Increases and Changes in Share Ownership Not Resulting in Changes in PSP Status

Article 57

(1) The BPRS is required to submit a report on paid-in capital increases and/or changes in share ownership composition that do not result in a change in PSP status to the Financial Services Authority within a maximum of 10 (ten) Working Days from the date of the letter of receipt of notification of data changes and/or approval of amendments to the Articles of Association from the competent authority.

(2) The report as referred to in paragraph (1) is accompanied by documents referring to the Document for Submission of Reports on Paid-in Capital Increases and/or Changes in Share Ownership Not Resulting in Changes in PSP Status contained in Appendix Part I, which is an integral part of this Financial Services Authority Regulation.

Fifth Section

Changes in Authorized Capital

Article 58

(1) The BPRS is required to submit a report on changes in authorized capital to the Financial Services Authority within a maximum of 10 (ten) Working Days from the date the BPRS receives the letter of approval for amendments to the Articles of Association from the competent authority.

(2) The report on changes in authorized capital as referred to in paragraph (1) is attached with:

a. the minutes of the GMS made in a notarial deed; and

b. approval of amendments to the Articles of Association from the competent authority.

Article 59

(1) BPRSs that violate the provisions as referred to in Article 39, Article 41 paragraph (1), Article 42, Article 43 paragraph (1), paragraph (2), Article 44 paragraph (2), Article 46, Article 47 paragraph (1), and/or Article 52 paragraph (1) are subject to administrative sanctions in the form of a written reprimand.

(2) In the event that the BPRS has been subject to administrative sanctions as referred to in paragraph (1), and continues to violate the provisions as referred to in Article 41 paragraph (1), Article 46, Article 47 paragraph (1), and/or Article 52 paragraph (1), the BPRS is subject to administrative sanctions in the form of a downgrade of the BPRS's health level.

(3) In the event that the BPRS has been subject to administrative sanctions as referred to in paragraph (1), and continues to violate the provisions as referred to in Article 39, Article 42, Article 43 paragraph (1), paragraph (2), and/or Article 44 paragraph (2), the BPRS may be subject to administrative sanctions in the form of:

a. a downgrade of the BPRS's health level;

b. a prohibition on expanding business activities and/or Office Networks;

c. a temporary suspension of some of the BPRS's operational activities; and/or

d. a postponement of the right to receive dividends for shareholders.

(4) BPRSs that are late in fulfilling the obligation to submit reports as referred to in Article 41 paragraph (4), Article 45 paragraph (1), Article 51 paragraph (4), paragraph (5), paragraph (7), Article 56 paragraph (4), paragraph (5), paragraph (7), Article 57 paragraph (1), and/or Article 58 paragraph (1) are subject to administrative sanctions in the form of a fine of IDR 100,000.00 (one hundred thousand rupiah) per Working Day and a maximum of IDR 5,000,000.00 (five million rupiah).

(5) BPRSs that have been subject to administrative sanctions in the form of a fine as referred to in paragraph (3) remain obligated to submit reports.

Article 60

PSPs, members of the Board of Directors, members of the Board of Commissioners, and/or Executive Officials of BPRSs that violate the provisions as referred to in Article 43 paragraph (1), paragraph (2), and/or Article 44 paragraph (2) may be subject to administrative sanctions in the form of a prohibition from acting as a principal party in accordance with the Financial Services Authority Regulation regarding the re-assessment of principal parties of financial service institutions.

CHAPTER V

MEMBERS OF THE BOARD OF DIRECTORS, MEMBERS OF THE BOARD OF COMMISSIONERS, SHARIA SUPERVISORY BOARD, AND EXECUTIVE OFFICIALS

First Section

General Provisions

Article 61

(1) Members of the Board of Directors and members of the Board of Commissioners must fulfill the following requirements:

a. integrity;

b. financial reputation; and

c. competence.

(2) The fulfillment of requirements for members of the Board of Directors and members of the Board of Commissioners as referred to in paragraph (1) is carried out in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions.

Second Section

Members of the Board of Directors

Article 62

(1) The BPRS is required to have at least 2 (two) members of the Board of Directors, one of whom serves as the President Director.

(2) Members of the Board of Directors must have a minimum formal education level equivalent to a Diploma Three (D3).

(3) At least 50% (fifty percent) of the members of the Board of Directors, including the President Director, must have operational experience of at least:

a. 2 (two) years as officials in the field of financing and/or lending in Islamic banking;

b. 2 (two) years as officials in the field of financing and/or lending in conventional banking and possess knowledge in the field of Islamic banking; or

c. 3 (three) years as directors or equivalent to directors in Islamic microfinance institutions.

(4) In addition to fulfilling the provisions as referred to in paragraph (1), paragraph (2), and paragraph (3), members of the Board of Directors must fulfill the Financial Services Authority Regulation regarding the application of corporate governance for Islamic microfinance banks.

Article 63

(1) Members of the Board of Directors are required to possess a valid work competency certificate issued by a professional certification body.

(2) In the event that the proposed candidate for member of the Board of Directors is a Director of:

a. a Rural Credit Bank (BPR) changing its business activities from BPR to BPRS; or

b. an Islamic Rural Bank (BUS) or Islamic Village Bank (BUK) changing its business license from BUS or BUK to BPRS,

the obligation to possess a work competency certificate as referred to in paragraph (1) must be fulfilled within a maximum of 2 (two) years from the date of the license for change of activities or business license becoming a BPRS.

Article 64

(1) A majority of the members of the Board of Directors are prohibited from having family or in-law relationships up to the second degree with:

a. other members of the Board of Directors; and/or

b. members of the Board of Commissioners.

(2) Members of the Board of Directors, individually or collectively, are prohibited from holding shares amounting to 25% (twenty-five percent) or more of the paid-in capital of the BPRS.

(3) Members of the Board of Directors are prohibited from granting a general power of attorney that results in the transfer of duties, authorities, and responsibilities to other parties.

Third Section

Members of the Board of Commissioners

Article 65

(1) The BPRS is required to have at least 2 (two) members of the Board of Commissioners and at most equal to the number of members of the Board of Directors, one of whom serves as the Lead Commissioner.

(2) Members of the Board of Commissioners as referred to in paragraph (1) must possess:

a. adequate and relevant knowledge in the field of banking related to their position; and/or

b. experience in the field of banking and/or finance.

(3) Members of the Board of Commissioners as referred to in paragraph (1) are required to possess a valid work competency certificate issued by a professional certification body.

(4) Candidates for members of the Board of Commissioners must possess the work competency certificate as referred to in paragraph (3) at the time of being proposed as candidates for members of the Board of Commissioners.

(5) The work competency certificate as referred to in paragraph (4) that can be used as certification documents for candidates for members of the Board of Commissioners includes valid work competency certificates of members of the Board of Directors.

(6) Members of the Board of Commissioners may only hold concurrent positions in at most 2 (two) other companies as follows:

a. members of the Board of Commissioners of a rural credit bank or another BPRS; and/or

b. members of the Board of Commissioners, members of the Board of Directors, and/or Executive Officials at non-bank institutions or companies.

(7) Concurrent positions as referred to in paragraph (6) do not include positions held by members of the Board of Commissioners as officials in non-profit organizations or institutions, provided that they do not interfere with the execution of duties as members of the Board of Commissioners of the BPRS.

(8) Members of the Board of Commissioners are prohibited from holding concurrent positions as members of the Board of Directors in other BPRSs, rural credit banks, and/or commercial banks.

(9) In addition to fulfilling the provisions as referred to in paragraph (1) through paragraph (8), members of the Board of Commissioners must fulfill the Financial Services Authority Regulation regarding the application of corporate governance for Islamic microfinance banks.

Article 66

(1) The Board of Commissioners is required to encourage the BPRS's Board of Directors to fulfill prudent banking principles and Sharia Principles.

(2) Members of the Board of Commissioners are prohibited from granting a general power of attorney that results in the unlimited transfer of duties and authorities.

Article 67

In the event that the Financial Services Authority requires explanations regarding the results of supervision of the BPRS, the Board of Commissioners is required to present the results of supervision of the BPRS.

Fourth Section

Follow-up on Positions of Members of the Board of Directors and/or Members of the Board of Commissioners

Article 68

(1) Candidates for members of the Board of Directors and candidates for members of the Board of Commissioners are required to obtain approval from the Financial Services Authority before carrying out actions, duties, and functions in their positions.

(2) In providing approval for the application as referred to in paragraph (1), the Financial Services Authority conducts an assessment of competence and propriety in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions.

Article 69

(1) The BPRS must convene a General Meeting of Shareholders (GMS) to appoint members of the Board of Directors and/or members of the Board of Commissioners within a maximum of 60 (sixty) Working Days from the date of approval by the Financial Services Authority regarding the determination of the results of the assessment of competence and propriety.

(2) In the event that the GMS for appointment cannot be convened within the period as referred to in paragraph (1), the approval by the Financial Services Authority regarding the determination of the results of the assessment of competence and propriety is declared void and invalid.

(3) Members of the Board of Directors and/or members of the Board of Commissioners take office from the date determined in the GMS.

(4) The appointment of members of the Board of Directors and/or members of the Board of Commissioners must be reported online through the Financial Services Authority's reporting system, in the reporting period for the date of appointment of members of the Board of Directors and/or members of the Board of Commissioners determined in the GMS, accompanied by the minutes of the GMS and proof of the letter of receipt of notification from the competent authority.

(5) In the event that the Financial Services Authority's online reporting system is not yet available, the BPRS is required to submit the report as referred to in paragraph (4) offline.

(6) The obligation to submit reports as referred to in paragraph (5) must be fulfilled within a maximum of 10 (ten) Working Days calculated from the date of the GMS.

Article 70

(1) In the event that the BPRS has already convened the GMS before obtaining approval from the Financial Services Authority, the BPRS may choose not to convene the GMS again to approve the appointment of members of the Board of Directors and/or members of the Board of Commissioners.

(2) The Financial Services Authority issues a determination of the results of the assessment of competence and propriety which serves as the date on which members of the Board of Directors and/or members of the Board of Commissioners first take office.

(3) The BPRS is required to report the appointment of members of the Board of Directors and/or members of the Board of Commissioners as referred to in paragraph (1) online through the Financial Services Authority's reporting system in the reporting period for the date of determination of the results of the assessment of competence and propriety, accompanied by the minutes of the GMS and proof of the letter of receipt of notification from the competent authority.

(4) In the event that the Financial Services Authority's online reporting system is not yet available, the BPRS is required to submit the report as referred to in paragraph (3) offline.

(5) The obligation to submit reports as referred to in paragraph (4) must be fulfilled within a maximum of 10 (ten) Working Days calculated from the date of determination

results of the assessment of competence and propriety, accompanied by the Minutes of the General Meeting of Shareholders (RUPS) and proof of receipt of the notification from the competent authority.

Article 71
(1) Sharia Rural Financing Banks (BPRS) are required to submit reports on the resignation of members of the Board of Directors and/or the Board of Commissioners online through the Financial Services Authority (OJK) reporting system during the reporting period on the date:
a. resignation determined in the RUPS; or b. expiration of the term regulated in the BPRS Articles of Association for RUPS that cannot be held, accompanied by the reasons for resignation and/or the Minutes of the RUPS. (2) BPRS is required to submit reports on the dismissal of members of the Board of Directors and/or the Board of Commissioners online through the OJK reporting system during the reporting period on the date of dismissal determined in the RUPS, accompanied by the reasons for dismissal and the Minutes of the RUPS. (3) In the event that a member of the Board of Directors and/or the Board of Commissioners dies, BPRS is required to report online through the OJK reporting system during the reporting period on the date the member of the Board of Directors and/or the Board of Commissioners died, accompanied by a death certificate from the competent authority. (4) In the event that the OJK online reporting system is not yet available, BPRS is required to submit reports as referred to in paragraph (1), paragraph (2), and paragraph (3) offline. (5) The obligation to submit reports as referred to in paragraph (4) is carried out at the latest 10 (ten) Working Days calculated from the date of the letter of resignation, dismissal, or declaration of death. (6) In the event that a member of the Board of Directors and/or the Board of Commissioners meets the prohibition requirements for members of the Board of Directors and/or the Board of Commissioners, the prohibition applies from the date of notification of the violation or decision of the Financial Services Authority.

Article 72
(1) In the event that a member of the Board of Directors and/or the Board of Commissioners is dismissed by the RUPS resulting in the minimum number of members of the Board of Directors as referred to in Article 62 paragraph (1) and/or members of the Board of Commissioners as referred to in Article 65 paragraph (1) not being met, BPRS is required to replace the members of the Board of Directors and/or the Board of Commissioners at the latest 120 (one hundred twenty) Working Days from the date the members of the Board of Directors and/or the Board of Commissioners were dismissed based on the RUPS decision. (2) In the event that a member of the Board of Directors and/or the Board of Commissioners resigns resulting in the minimum number of members of the Board of Directors as referred to in Article 62 paragraph (1) and/or members of the Board of Commissioners as referred to in Article 65 paragraph (1) not being met, BPRS is required to replace the members of the Board of Directors and/or the Board of Commissioners at the latest 120 (one hundred twenty) Working Days from the resignation of the members of the Board of Directors and/or the Board of Commissioners as referred to in Article 71 paragraph (1). (3) In the event that a member of the Board of Directors and/or the Board of Commissioners dies resulting in the minimum number of members of the Board of Directors as referred to in Article 62 paragraph (1) and/or members of the Board of Commissioners as referred to in Article 65 paragraph (1) not being met, BPRS is required to replace the members of the Board of Directors and/or the Board of Commissioners at the latest 120 (one hundred twenty) Working Days from the declaration of death according to the death certificate from the competent authority. (4) In the event that a member of the Board of Directors and/or the Board of Commissioners meets the prohibition requirements to become a member of the Board of Directors and/or the Board of Commissioners by the Financial Services Authority resulting in the minimum number of members of the Board of Directors as referred to in Article 62 paragraph (1) and/or members of the Board of Commissioners as referred to in Article 65 paragraph (1) not being met, BPRS is required to replace the members of the Board of Directors and/or the Board of Commissioners at the latest 120 (one hundred twenty) Working Days from the date of notification or decision of the Financial Services Authority. (5) The time period of 120 (one hundred twenty) Working Days as referred to in paragraph (1), paragraph (2), paragraph (3), and paragraph (4) includes the scope of the process of submitting candidates for members of the Board of Directors and/or the Board of Commissioners by BPRS, assessment of competence and propriety, until the appointment of the members of the Board of Directors and/or the Board of Commissioners by the RUPS. (6) BPRS is required to hold a RUPS to replace members of the Board of Directors and/or the Board of
Commissioners whose term of office has expired, resulting in the minimum number of members of the Board of Directors and/or the Board of Commissioners not being met, at the latest on the date the term of office of the members of the Board of Directors and/or the Board of Commissioners ends.

Article 73
(1) In the event of a change in position of members of the Board of Directors and/or the Board of Commissioners, BPRS is required to submit a report on the change of position online through the OJK reporting system during the reporting period on the date of the change of position of the members of the Board of Directors and/or the Board of Commissioners, accompanied by the reasons for the change of position and documents explaining the decision on the change of position as regulated in the BPRS Articles of Association. (2) In the event that the OJK online reporting system is not yet available, BPRS is required to submit reports as referred to in paragraph (1) offline. (3) The obligation to submit reports as referred to in paragraph (2) is carried out at the latest 10 (ten) Working Days calculated from the date of the change of position of the members of the Board of Directors and/or the Board of Commissioners.

Article 74
(1) The reappointment of members of the Board of Directors and/or the Board of Commissioners by the RUPS must be carried out at the latest on the date the term of office of the members of the Board of Directors and/or the Board of Commissioners ends. (2) BPRS is required to submit reports on the reappointment of members of the Board of Directors and/or the Board of Commissioners as referred to in paragraph (1) online through the OJK reporting system during the reporting period on the date determined in the RUPS, accompanied by the Minutes of the RUPS. (3) In the event that the OJK online reporting system is not yet available, BPRS is required to submit reports as referred to in paragraph (2) offline. (4) The obligation to submit reports as referred to in paragraph (3) is carried out at the latest 10 (ten) Working Days calculated from the date of the RUPS. (5) In addition to submitting reports to the Financial Services Authority as referred to in paragraph (2), BPRS notifies the reappointment of members of the Board of Directors and/or the Board of Commissioners to the competent authority in accordance with applicable legislation. (6) The term of office of members of the Board of Directors and/or the Board of Commissioners ends if:
a. BPRS cannot hold a RUPS for reappointment within the time period as referred to in paragraph (1); or b. The RUPS is held but does not approve the reappointment of members of the Board of Directors and/or the Board of Commissioners. (7) Members of the Board of Directors and/or the Board of Commissioners whose term of office has ended as referred to in paragraph (7) and are nominated again as members of the Board of Directors and/or the Board of Commissioners, the candidates must obtain approval from the Financial Services Authority through an assessment of competence and propriety in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for key parties of financial service institutions.

Fifth Section
Sharia Supervisory Board

Article 75
(1) BPRS is required to form a Sharia Supervisory Board (DPS) located at the BPRS Head Office.
(2) BPRS is required to have at least 2 (two) persons and at most 3 (three) persons as members of the DPS.
(3) The DPS is led by a chairman who is one of the DPS members.
(4) In addition to meeting the requirements as referred to in paragraph (1), paragraph (2), and paragraph (3), DPS members must meet the Financial Services Authority Regulation regarding the application of corporate governance for Sharia Rural Financing Banks.

Article 76
DPS members are required to meet integrity, competence, and financial reputation requirements referring to the List of Requirements for the Sharia Supervisory Board contained in Appendix Section Q, which is an integral part of this Financial Services Authority Regulation.

Article 77
(1) BPRS is required to submit candidates for DPS members to obtain OJK approval before assuming their positions.
(2) The submission of DPS member candidates as referred to in paragraph (1) is carried out after receiving a recommendation from the Indonesian Ulema Council (Majelis Ulama Indonesia).
(3) The appointment of DPS members by the RUPS becomes effective after obtaining OJK approval.
(4) Approval as referred to in paragraph (3) is given based at least on:
a. results of assessment of the commitment of DPS candidates in supervising BPRS and time availability; and b. results of interviews with DPS candidates.
(5) The appointment of DPS members must be reported online through the OJK reporting system, during the reporting period for the appointment of DPS members determined in the RUPS, accompanied by the Minutes of the RUPS. (6) In the event that the OJK online reporting system is not yet available, BPRS is required to submit reports as referred to in paragraph (5) offline. (7) The obligation to submit reports as referred to in paragraph (6) is carried out at the latest 10 (ten) Working Days calculated from the date of the RUPS.

Article 78
(1) Dismissal and/or resignation of DPS members is decided by the RUPS and/or other mechanisms as regulated in the Articles of Association.
(2) BPRS is required to submit reports on the dismissal and/or resignation of DPS members online through the OJK reporting system during the reporting period on the date:
a. dismissal and/or resignation determined in the RUPS; or b. expiration of the term regulated in the BPRS Articles of Association for RUPS that cannot be held, accompanied by the reasons for dismissal, resignation, and/or the Minutes of the RUPS. (3) In the event that a DPS member dies, BPRS is required to report online through the OJK reporting system during the reporting period on the date the DPS member died, accompanied by a death certificate from the competent authority. (4) In the event that the OJK online reporting system is not yet available, BPRS is required to submit reports as referred to in paragraph (2) and paragraph (3) offline. (5) The obligation to submit reports as referred to in paragraph (4) is carried out at the latest 10 (ten) Working Days calculated from the date of the letter of dismissal, resignation, or declaration of death.

Article 79
(1) In the event of a change in position of DPS members, BPRS is required to submit a report on the change of position online through the OJK reporting system during the reporting period on the date of the change of position of DPS members, accompanied by the reasons for the change of position and documents explaining the decision on the change of position as regulated in the BPRS Articles of Association. (2) The reappointment of DPS members by the RUPS must be carried out at the latest on the date the term of office of DPS members ends. (3) BPRS is required to submit reports on the reappointment of DPS members as referred to in paragraph (2) online through the OJK reporting system during the reporting period on the date determined in the RUPS, accompanied by the Minutes of the RUPS. (4) In the event that the OJK online reporting system is not yet available, BPRS is required to submit reports as referred to in paragraph (1) and paragraph (3) offline. (5) The obligation to submit reports as referred to in paragraph (4) is carried out at the latest 10 (ten) Working Days calculated from:
a. the date of the RUPS, for the reappointment of DPS; or b. the date of the change of position of DPS members.
(6) The term of office of DPS members ends if:
a. BPRS does not hold a RUPS for reappointment within the time limit as referred to in paragraph (2); or b. The RUPS is held but does not approve the reappointment of DPS members.
(7) DPS members whose term of office has ended as referred to in paragraph (6) and are nominated again as DPS members, the DPS member candidates must obtain approval from the Financial Services Authority as referred to in Article 77 paragraph (3).

Sixth Section
Executive Officers

Article 80
(1) BPRS is required to report every appointment, change, and/or dismissal of Executive Officers online through the OJK reporting system during the reporting period on the date of appointment, change, and/or dismissal of Executive Officers, accompanied by supporting documents. (2) Supporting documents as referred to in paragraph (1) refer to the Document on Appointment, Change, and/or Dismissal of Executive Officers contained in Appendix Section Q, which is an integral part of this Financial Services Authority Regulation. (3) In the event that the OJK online reporting system is not yet available, BPRS is required to submit reports as referred to in paragraph (1) offline. (4) The obligation to submit reports as referred to in paragraph (3) is carried out at the latest 10 (ten) Working Days calculated from the date of appointment, change, and/or dismissal of Executive Officers. (5) In addition to meeting the requirements as referred to in paragraph (1) to paragraph (4), reports on the appointment and/or dismissal of Executive Officers who perform internal audit functions must meet the Financial Services Authority Regulation regarding the application of corporate governance for Sharia Rural Financing Banks.

Article 81
(1) The Financial Services Authority conducts research on reports regarding Executive Officers as referred to in Article 80.
(2) In the event that based on the results of research as referred to in paragraph (1) the Executive Officer is listed as not passing, BPRS is required to dismiss the Executive Officer from the date of notification from the Financial Services Authority. (3) In the event that based on the results of research as referred to in paragraph (1) the Executive Officer has non-performing loans and/or non-performing financing, the Executive Officer concerned must settle the non-performing loans and/or non-performing financing in accordance with the Financial Services Authority Regulation regarding re-assessment for key parties of financial service institutions.

Article 82
(1) BPRS that violates the provisions as referred to in Article 62 paragraph (1), Article 63 paragraph (1), Article 64, Article 65 paragraph (1), paragraph (3), paragraph (6), paragraph (8), Article 66, Article 67, Article 68 paragraph (1), Article 72 paragraph (1), paragraph (2), paragraph (3), paragraph (4), paragraph (6), Article 75 paragraph (1), paragraph (2), Article 76, Article 77 paragraph (1), and/or Article 81 paragraph (2), is subject to administrative sanctions in the form of a written warning. (2) In the event that BPRS has been subject to administrative sanctions as referred to in paragraph (1), and continues to violate the provisions as referred to in Article 63 paragraph (1), Article 64 paragraph (1), paragraph (2), Article 65 paragraph (6), paragraph (8), Article 66 paragraph (1), Article 67, Article 75 paragraph (1), Article 76, and/or Article 77 paragraph (1), BPRS is subject to administrative sanctions in the form of a downgrade of the BPRS health level. (3) In the event that BPRS has been subject to administrative sanctions as referred to in paragraph (1), and continues to violate the provisions as referred to in Article 62 paragraph (1), Article 65 paragraph (1), paragraph (3), Article 68 paragraph (1), Article 72 paragraph (1), paragraph (2), paragraph (3), paragraph (4), paragraph (6), Article 75 paragraph (2), and/or Article 81 paragraph (2), BPRS is subject to administrative sanctions in the form of:
a. downgrade of the BPRS health level; b. prohibition on expanding business activities and/or Office Networks;
c. temporary suspension of part of BPRS's operational activities; and/or
d. postponement of the right to receive dividends for shareholders.
(4) BPRS that violates the provisions as referred to in Article 69 paragraph (4), Article 70 paragraph (3), Article 71 paragraph (1), paragraph (2), paragraph (3), Article 73 paragraph (1), Article 74 paragraph (2), Article 77 paragraph (5), Article 78 paragraph (2), paragraph (3), Article 79 paragraph (1), paragraph (3), and/or Article 80 paragraph (1), is subject to administrative sanctions in accordance with the Financial Services Authority Regulation regarding reporting by rural credit banks and Sharia rural financing banks through the OJK reporting system. (5) BPRS that is late in submitting reports as referred to in Article 69 paragraph (5), Article 70 paragraph (4), Article 71 paragraph (4), Article 73 paragraph (2), Article 74 paragraph (3), Article 77 paragraph (6), Article 78 paragraph (4), Article 79 paragraph (4), Article 80 paragraph (3), is subject to administrative sanctions in the form of a fine of IDR 100,000.00 (one hundred thousand rupiah) per Working Day and at most IDR 5,000,000.00 (five million rupiah). (6) BPRS that has been subject to administrative sanctions in the form of a fine as referred to in paragraph (5) must still submit reports.

Article 83
In the event that members of the Board of Directors, and/or members of the Board of Commissioners, violate the provisions as referred to in Article 64 paragraph (3), and/or Article 66, they may be subject to administrative sanctions in the form of a prohibition as a key party in accordance with the Financial Services Authority Regulation regarding re-assessment for key parties of financial service institutions.

CHAPTER VI
BUSINESS ACTIVITIES OF SHARIA RURAL FINANCING BANKS

Article 84
(1) In carrying out business activities, BPRS is required to apply Sharia Principles and prudential principles.
(2) BPRS may carry out social functions in accordance with applicable legislation.
(3) BPRS that violates the provisions as referred to in paragraph (1) is subject to administrative sanctions in the form of a written warning.
(4) In the event that BPRS has been subject to administrative sanctions as referred to in paragraph (3), and continues to violate the provisions as referred to in paragraph (1), it is subject to administrative sanctions in the form of:
a. downgrade of the BPRS health level; b. prohibition on expanding business activities and/or Office Networks;
c. temporary suspension of part of BPRS's operational activities; and/or
d. postponement of the right to receive dividends for shareholders.

CHAPTER VII
OFFICE NETWORKS OF SHARIA RURAL FINANCING BANKS

Article 85
(1) BPRS may open Office Networks within the same province as the BPRS Head Office province, provided that it meets the minimum core capital requirements for BPRS in accordance with the Financial Services Authority Regulation regarding minimum capital provision and fulfillment of minimum core capital for Sharia rural financing banks. (2) BPRS may open Office Networks within the same province as the BPRS Head Office province and/or in regencies or cities in other provinces that border directly with the province where the BPRS Head Office is located, provided that it has:
a. minimum core capital of at least IDR 50,000,000,000.00 (fifty billion rupiah); or b. specific considerations supported by strong analysis.
(3) BPRS as referred to in paragraph (1) and paragraph (2) may open Branch Offices in numbers appropriate to the BPRS's capital capacity and business needs.

Article 86
(1) The Special Capital Region of Jakarta Province, Bogor Regency or City, Depok City, Tangerang Regency or City, South Tangerang City, Bekasi Regency or City, and Karawang Regency are declared as one province for the purpose of licensing the opening of BPRS Office Networks. (2) The provisions as referred to in paragraph (1) also apply to the opening of BPRS Office Networks as a result of merger or consolidation.

Article 87
In the event of regional expansion that causes BPRS Office Networks to be located in a province different from the BPRS Head Office location, the BPRS Office Networks may continue to operate in the original area.

Second Section
Opening Office Networks

Article 88
(1) BPRS is required to obtain approval from the Financial Services Authority to open Branch Offices.
(2) BPRS submitting an application for Branch Office opening approval as referred to in paragraph (1) must meet the requirements:
a. the plan to open Branch Offices has been included in the BPRS business plan; b. has financial conditions and health levels capable of supporting the development of BPRS business activities and absorbing possible business losses;
c. there are no violations of provisions related to BPRS;
d. has adequate information technology; e. meets completeness of organizational structure, human resource composition, job descriptions, and standard operating procedures; and f. has infrastructure and supporting facilities for operational activities.

Article 89
Applications for Branch Office opening approval as referred to in Article 88 paragraph (2) are submitted to the Financial Services Authority, accompanied by requirement documents referring to the Checklist of Documents for Branch Office Opening Approval Applications contained in Appendix Section J, which is an integral part of this Financial Services Authority Regulation.

Article 90
(1) The Financial Services Authority processes applications and provides approval or rejection of Branch Office opening approval applications at the latest 30 (thirty) Working Days from the date the application accompanied by required documents is received completely. (2) The time period as referred to in paragraph (1) does not include time given to BPRS to complete, repair, and/or update documents required in the application for Branch Office opening approval. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts research on:
a. fulfillment of requirements as referred to in Article 88 paragraph (2); and b. fulfillment of requirements as referred to in Article 89.

Article 91
(1) The Financial Services Authority conducts research on the completeness of requirement documents for applications as referred to in Article 89.
(2) In the event that based on research on the completeness of documents as referred to in paragraph (1) is not complete, the Financial Services Authority notifies BPRS to complete the missing documents and submit them back to the Financial Services Authority at the latest 10 (ten) Working Days from the date of notification from the Financial Services Authority. (3) In the event that BPRS does not complete, repair, and/or update missing documents within the time limit as referred to in paragraph (2), BPRS is considered to have cancelled the Branch Office opening approval application. (4) In the event that the Branch Office opening approval application documents submitted are assessed as complete, the Financial Services Authority notifies BPRS that the documents are complete and the approval or rejection process for Branch Office opening approval begins to run from the date of such notification.

Article 92
(1) In conducting research regarding the fulfillment of requirements as referred to in Article 90 paragraph (3) letter b, the Financial Services Authority may request additional and/or corrected documents to be submitted through notification to the Sharia Rural Financing Bank. (2) Additional and/or corrected documents as referred to in paragraph (1) must be submitted to the Financial Services Authority within a maximum of 20 (twenty) Working Days from the date of notification by the Financial Services Authority. (3) In the event that the Sharia Rural Financing Bank does not submit additional and/or corrected documents within the time limit as referred to in paragraph (2), the application for the license to open a Branch Office shall be rejected. (4) In the event that based on the research results regarding the fulfillment of requirements as referred to in Article 90 paragraph (3) letter a there are:
a. financial ratios or key indicators that have the potential to lower financial performance; and/or b. violations of regulations related to the Sharia Rural Financing Bank, the application for the license to open a Branch Office shall be rejected.

Article 93
(1) A Sharia Rural Financing Bank that obtains a license to open a Branch Office as referred to in Article 90 paragraph (1) is required to open the Branch Office within a maximum of 20 (twenty) Working Days from the date of the license from the Financial Services Authority. (2) The Sharia Rural Financing Bank is required to submit a report on the implementation of the Branch Office opening online through the Financial Services Authority's reporting system in the reporting period corresponding to the date of the Branch Office opening implementation. (3) In the event that the Financial Services Authority's online reporting system is not yet available, the Sharia Rural Financing Bank is required to submit the report as referred to in paragraph (2) offline. (4) The obligation to submit the report as referred to in paragraph (3) must be carried out within a maximum of 10 (ten) Working Days calculated from the date of the Branch Office opening. (5) In the event that the Sharia Rural Financing Bank does not implement the Branch Office opening within the time frame as referred to in paragraph (1), the license to open the Branch Office that has been granted is declared void and invalid.

Article 94
(1) A Sharia Rural Financing Bank may open a Cash Office in a district or city that:
a. is the same as the district or city of the Head Office of the Cash Office; and/or b. borders directly with the district or city of the Head Office of the nearest Cash Office.
(2) A Sharia Rural Financing Bank may open a Cash Office at locations other than those referred to in paragraph (1) based on certain considerations, provided that it is located within the boundaries of the Office Network opening area as referred to in Article 85 paragraph (1) and paragraph (2).

Article 95
(1) A Sharia Rural Financing Bank Cash Office may conduct activities including:
a. serving depositing customers such as receiving deposit payments, withdrawing savings, cashing deposits including receiving applications for opening new deposit accounts; b. assisting in financing service activities, such as receiving financing applications, disbursing financing that has been approved by the Head Office, and receiving financing installment payments;
c. receiving fund deposits for bill payment service;
d. storing cash funds provided that there is adequate storage and security infrastructure; and/or e. other activities to support the function of the Cash Office, through a reporting mechanism to the Financial Services Authority. (2) Cash Offices are prohibited from conducting cash service activities other than those referred to in paragraph (1), including conducting analysis and making decisions in the process of providing funds or granting financing to customers.

Article 96
(1) A Sharia Rural Financing Bank is required to submit a report on the implementation of the Cash Office opening online through the Financial Services Authority's reporting system in the reporting period corresponding to the date of the Cash Office opening implementation. (2) In the event that the Financial Services Authority's online reporting system is not yet available, the Sharia Rural Financing Bank is required to submit the report as referred to in paragraph (1) offline. (3) The obligation to submit the report as referred to in paragraph (2) must be carried out within a maximum of 10 (ten) Working Days calculated from the date of the Cash Office opening.

Article 97
A Sharia Rural Financing Bank is required to clearly state the name and type of office status at each of its offices.

Article 98
(1) Mobile Cash Units and Payment Points may be conducted in a district or city that:
a. is the same as the Head Office of the Mobile Cash Unit and Payment Point; and/or b. borders directly with the district or city of the Head Office of the Mobile Cash Unit and Payment Point.
(2) Mobile Cash Units are prohibited from conducting business activities other than:
a. receiving financing installments; b. receiving applications for opening new deposit accounts including customer savings deposits;
c. serving savings withdrawals for customers according to the authority granted by their Head Office; and
d. receiving fund deposits for bill payment services.
(3) Payment Points are prohibited from conducting business activities other than payment services or receiving payments through agreements with other parties at a specific location.

Article 99
(1) A Sharia Rural Financing Bank may conduct exhibition activities for promotion and which are not permanent.
(2) Exhibition activities as referred to in paragraph (1) are not included in Mobile Cash Units and Payment Points.
(3) A Sharia Rural Financing Bank conducting exhibition activities must meet the following requirements:
a. conducted for a period of less than 30 (thirty) days; b. the exhibition activity is reported to the Financial Services Authority within a maximum of 3 (three) Working Days before the implementation of the activity;
c. there are employees from the Head Office or Branch Office of the Sharia Rural Financing Bank who are responsible for the service of opening deposit accounts conducted during the exhibition activity; and
d. the availability of internal policies and procedures including the mechanism for opening deposit accounts conducted during the exhibition activity.
(4) A Sharia Rural Financing Bank in exhibition activities is prohibited from providing services other than:
a. promoting the products of the respective Sharia Rural Financing Bank; b. serving the opening of new fund-raising accounts; and
c. serving financing applications.

Article 100
(1) A Sharia Rural Financing Bank is required to submit reports on Mobile Cash Units and Payment Points online through the Financial Services Authority's reporting system in the reporting period corresponding to the date of the implementation of the Mobile Cash Unit and Payment Point. (2) In the event that the Financial Services Authority's online reporting system is not yet available, the Sharia Rural Financing Bank is required to submit the report as referred to in paragraph (1) offline. (3) The obligation to submit the report as referred to in paragraph (2) must be carried out within a maximum of 10 (ten) Working Days calculated from the date of the implementation of the Mobile Cash Unit and Payment Point activities.

Article 101
A Sharia Rural Financing Bank is required to combine the financial reports of Cash Offices, Mobile Cash Units, and Payment Points with the financial reports of the Head Office or Branch Office that serves as the Head Office on the same day.

Article 102
(1) A Sharia Rural Financing Bank may organize and manage PPE.
(2) A Sharia Rural Financing Bank is required to submit reports on the use of PPE and every addition of PPE organized and managed by the Sharia Rural Financing Bank as referred to in paragraph (1) online through the Financial Services Authority's reporting system in the reporting period corresponding to the date of the implementation of the use of PPE. (3) In the event that the Financial Services Authority's online reporting system is not yet available, the Sharia Rural Financing Bank is required to submit the report as referred to in paragraph (1) offline. (4) The obligation to submit the report as referred to in paragraph (2) must be carried out within a maximum of 10 (ten) Working Days calculated from the date of the implementation of the activity.

Third Section
Relocation of Office Network Addresses

Article 103
(1) A Sharia Rural Financing Bank is required to obtain approval from the Financial Services Authority to relocate the address of the Head Office and/or Branch Office.
(2) A Sharia Rural Financing Bank submitting an application for approval to relocate the address of the Head Office and/or Branch Office as referred to in paragraph (1) must meet the following requirements:
a. the plan to relocate the address of the Head Office and/or Branch Office has been included in the Sharia Rural Financing Bank's business plan; b. the paid-up capital for the establishment of the Sharia Rural Financing Bank in the new Head Office zone, in the event that the relocation of the Head Office address is to a zone with higher paid-up capital requirements for the establishment of the Sharia Rural Financing Bank than the original Head Office zone; and
c. settling or transferring the debts and obligations of the Head Office and/or Branch Office.

Article 104
The application to obtain approval for relocating the address of the Head Office and/or Branch Office as referred to in Article 103 paragraph (2) is submitted to the Financial Services Authority, accompanied by the Application Document for Relocation of Head Office and/or Branch Office Address listed in Appendix Section K which is an integral part of this Financial Services Authority Regulation.

Article 105
(1) The Financial Services Authority processes the application and provides approval or rejection of the application for relocating the address of the Head Office and/or Branch Office as referred to in Article 104 within a maximum of 20 (twenty) Working Days from the date the application accompanied by the required documents is received completely. (2) The time limit as referred to in paragraph (1) does not include the time given to the Sharia Rural Financing Bank to complete, correct, and/or update the documents required in the application for relocating the address of the Head Office and/or Branch Office. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts research on the completeness of requirement documents referring to the Checklist for Application Documents for Relocation of Head Office and/or Branch Office Address listed in Appendix Section K which is an integral part of this Financial Services Authority Regulation.

Article 106
(1) The Financial Services Authority conducts research on the completeness of requirement documents for the application as referred to in Article 104.
(2) In the event that based on the research on the completeness of documents as referred to in paragraph (1) is not yet complete, the Financial Services Authority notifies the Sharia Rural Financing Bank to complete the missing documents and submit them again to the Financial Services Authority within a maximum of 10 (ten) Working Days from the date of notification from the Financial Services Authority. (3) In the event that the Sharia Rural Financing Bank does not complete, correct, and/or update the missing documents within the time frame as referred to in paragraph (2), the Sharia Rural Financing Bank is considered to have canceled the application for relocating the address of the Head Office and/or Branch Office. (4) In the event that the application documents for relocating the address of the Head Office and/or Branch Office submitted are assessed to be complete, the Financial Services Authority notifies the Sharia Rural Financing Bank that the documents are complete and the approval or rejection process for relocating the address of the Head Office and/or Branch Office begins to run from the date of notification.

Article 107
(1) In conducting research regarding the fulfillment of requirements as referred to in Article 105 paragraph (3), the Financial Services Authority may request additional and/or corrected documents to be submitted through notification to the Sharia Rural Financing Bank. (2) Additional and/or corrected documents as referred to in paragraph (1) must be submitted to the Financial Services Authority within a maximum of 20 (twenty) Working Days from the date of notification from the Financial Services Authority. (3) In the event that the Sharia Rural Financing Bank does not submit additional and/or corrected documents within the time frame as referred to in paragraph (2), the application for approval to relocate the address of the Head Office and/or Branch Office shall be rejected.

Article 108
(1) A Sharia Rural Financing Bank that obtains approval to relocate the address of the Head Office and/or Branch Office as referred to in Article 105 paragraph (1) is required to carry out the relocation within a maximum of:
a. 30 (thirty) Working Days for the relocation of the Head Office address; or b. 20 (twenty) Working Days for the relocation of the Branch Office address, from the date of approval by the Financial Services Authority. (2) A Sharia Rural Financing Bank is required to submit a report on the relocation of the address of the Head Office and/or Branch Office online through the Financial Services Authority's reporting system in the reporting period corresponding to the date of the implementation of the relocation of the address of the Head Office and/or Branch Office. (3) In the event that the Financial Services Authority's online reporting system is not yet available, the Sharia Rural Financing Bank is required to submit the report as referred to in paragraph (2) offline. (4) The obligation to submit the report as referred to in paragraph (3) must be carried out within a maximum of 10 (ten) Working Days calculated from the date of the implementation of the relocation of the address of the Head Office and/or Branch Office. (5) In addition to submitting reports to the Financial Services Authority as referred to in paragraph (2), the Sharia Rural Financing Bank applies for approval of amendments to the articles of association regarding the relocation of the Head Office address to the competent agency in accordance with applicable legislation. (6) In the event that the Sharia Rural Financing Bank does not implement the relocation of the address of the Head Office and/or Branch Office within the time frame as referred to in paragraph (1), the approval to relocate the address of the Head Office and/or Branch Office that has been granted is declared void and invalid.

Article 109
(1) A Sharia Rural Financing Bank is required to announce the implementation of the relocation of the Cash Office address on the announcement board at all offices of the respective Sharia Rural Financing Bank and in local daily newspapers, electronic mass media, and/or the Sharia Rural Financing Bank's website within a maximum of 10 (ten) Working Days before the date of implementation of the relocation of the Cash Office address. (2) A Sharia Rural Financing Bank is required to submit a report on the relocation of the Cash Office address online through the Financial Services Authority's reporting system in the reporting period corresponding to the date of the implementation of the relocation of the Cash Office address, accompanied by proof of announcement as referred to in paragraph (1). (3) In the event that the Financial Services Authority's online reporting system is not yet available, the Sharia Rural Financing Bank is required to submit the report as referred to in paragraph (2) offline. (4) The obligation to submit the report as referred to in paragraph (3) must be carried out within a maximum of 10 (ten) Working Days calculated from the date of the implementation of the relocation of the Cash Office address.

Article 110
(1) A Sharia Rural Financing Bank relocating Payment Points and PPE locations must comply with the Financial Services Authority Regulation regarding the business plan for rural credit banks and Sharia rural financing banks. (2) A Sharia Rural Financing Bank is required to submit a report on the relocation of Payment Points and PPE locations as referred to in paragraph (1) online through the Financial Services Authority's reporting system in the reporting period corresponding to the date of the implementation of the relocation of Payment Points and PPE locations. (3) In the event that the Financial Services Authority's online reporting system is not yet available, the Sharia Rural Financing Bank is required to submit the report as referred to in paragraph (2) offline. (4) The obligation to submit the report as referred to in paragraph (3) must be carried out within a maximum of 10 (ten) Working Days calculated from the date of the implementation of the relocation of Payment Points and PPE locations.

Fourth Section
Operational Activities and Temporary Closure of Office Networks

Article 111
(1) A Sharia Rural Financing Bank must establish the working days and hours of its office operations.
(2) Office activities of a Sharia Rural Financing Bank may be conducted on specific days and times outside of operational working days and hours and on national holidays.
(3) In the event that a Sharia Rural Financing Bank conducts operational activities as referred to in paragraph (2), the Sharia Rural Financing Bank is required to submit a report on the plan of the Sharia Rural Financing Bank and/or some of its offices to conduct operational activities on specific days and times outside of operational working days and hours and on national holidays to the Financial Services Authority within a maximum of 10 (ten) Working Days before the implementation of the operational activities. (4) In the event that a Sharia Rural Financing Bank conducts operational activities outside of operational working days and hours, and on national holidays based on a government decision that causes the time limit for the plan report as referred to in paragraph (3) not to be met, the Sharia Rural Financing Bank is required to submit a report on operational activities outside of operational working days and hours, and on national holidays to the Financial Services Authority within a maximum of 10 (ten) Working Days after the implementation of the operational activities.

Article 112
(1) A Sharia Rural Financing Bank may temporarily close its offices outside of official holidays for specific reasons.
(2) Temporary closure of Sharia Rural Financing Bank offices as referred to in paragraph (1) is conducted for a maximum of 5 (five) Working Days within a period of 1 (one) calendar year.
(3) A Sharia Rural Financing Bank is required to announce the date of temporary closure of its offices outside of official holidays as referred to in paragraph (1) to the public on the announcement board at the respective Sharia Rural Financing Bank office within a maximum of 5 (five) Working Days before the date of temporary closure. (4) A Sharia Rural Financing Bank is required to submit a report on the plan for the temporary closure of its offices outside of official holidays as referred to in paragraph (1) to the Financial Services Authority within a maximum of 5 (five) Working Days before the implementation of the temporary closure, accompanied by proof of announcement as referred to in paragraph (3). (5) A Sharia Rural Financing Bank is required to submit a report on the reopening of the office within a maximum of 3 (three) Working Days from the date of reopening.

Fifth Section
Changes in Office Network Status

Article 113
(1) A Sharia Rural Financing Bank must include the plan for changing the status of the Office Network in its business plan.
(2) Changes in the status of the Office Network of a Sharia Rural Financing Bank as referred to in paragraph (1) consist of:
a. upgrading the status of a Cash Office to a Branch Office; or b. downgrading the status of a Branch Office to a Cash Office.

Article 114
(1) Upgrading the status of a Cash Office to a Branch Office as referred to in Article 113 paragraph (2) letter a must obtain permission from the Financial Services Authority.
(2) A Sharia Rural Financing Bank submitting an application for permission to upgrade the status of a Cash Office to a Branch Office must meet the following requirements:
a. having financial conditions and health levels capable of supporting the development of the Sharia Rural Financing Bank's business activities and absorbing possible business losses; b. no violations of regulations related to the Sharia Rural Financing Bank;
c. meeting the completeness of organizational structure and standard operating procedures; and
d. completing infrastructure and supporting facilities for operational activities.
(3) A Sharia Rural Financing Bank submits an application for permission to upgrade the status of a Cash Office to a Branch Office to the Financial Services Authority accompanied by the Application Document for Permission for Upgrade of Office Status listed in Appendix Section L which is an integral part of this Financial Services Authority Regulation.

Article 115
(1) The Financial Services Authority processes the application and provides approval or rejection of the application for permission to upgrade the status of a Cash Office to a Branch Office within a maximum of 30 (thirty) Working Days from the date the application accompanied by the required documents is received completely. (2) The time limit as referred to in paragraph (1) does not include the time given to the Sharia Rural Financing Bank to complete, correct, and/or update the documents required in the application for permission to upgrade the status of a Cash Office to a Branch Office. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts research on the fulfillment of requirements as referred to in Article 114 paragraph (2) and paragraph (3).

Article 116
(1) The Financial Services Authority conducts research on the completeness of requirement documents for the application as referred to in Article 114 paragraph (3).
(2) In the event that based on the research as referred to in paragraph (1) is not complete, the Financial Services Authority notifies the Sharia Rural Financing Bank to complete the missing documents and submit them again to the Financial Services Authority within a maximum of 10 (ten) Working Days from the date of notification by the Financial Services Authority. (3) In the event that the Sharia Rural Financing Bank does not complete, correct, and/or update the missing documents within the time frame as referred to in paragraph (2), the Sharia Rural Financing Bank is considered to have canceled the application for permission to upgrade the status of a Cash Office to a Branch Office. (4) In the event that the application documents for permission to upgrade the status of a Cash Office to a Branch Office submitted are assessed to be complete, the Financial Services Authority notifies the Sharia Rural Financing Bank that the documents are complete and the approval or rejection process for permission to upgrade the status of a Cash Office to a Branch Office begins to run from the date of notification.

Article 117
(1) In conducting research regarding the fulfillment of requirements as referred to in Article 114 paragraph (3), the Financial Services Authority may request additional and/or corrected documents to be submitted through notification to the Sharia Rural Financing Bank. (2) Additional and/or corrected documents as referred to in paragraph (1) must be submitted to the Financial Services Authority within a maximum of 20 (twenty) Working Days from the date of notification by the Financial Services Authority. (3) In the event that the Sharia Rural Financing Bank does not submit additional and/or corrected documents within the time frame as referred to in paragraph (2), the application for permission to upgrade the status of a Cash Office to a Branch Office shall be rejected. (4) In the event that based on the research results regarding the requirements as referred to in Article 114 paragraph (2) there are:
a. financial ratios or key indicators that have the potential to lower financial performance; and/or b. violations of regulations related to the Sharia Rural Financing Bank, the application for permission to upgrade the status of a Cash Office to a Branch Office shall be rejected.

Article 118
(1) A Sharia Rural Financing Bank that obtains permission to upgrade the status of a Cash Office to a Branch Office is required to open the Branch Office within a maximum of 20 (twenty) Working Days from the date of the license from the Financial Services Authority. (2) A Sharia Rural Financing Bank is required to announce the implementation of the upgrade of the status of a Cash Office to a Branch Office as referred to in paragraph (1) to the public on the announcement board at the office of the Sharia Rural Financing Bank whose status is upgraded within a maximum of 5 (five) Working Days from the date the Sharia Rural Financing Bank obtains permission from the Financial Services Authority. (3) A Sharia Rural Financing Bank is required to submit a report on the implementation of the upgrade of the status of a Cash Office to a Branch Office online through the Financial Services Authority's reporting system in the reporting period corresponding to the date of the implementation of the Branch Office opening, accompanied by proof of announcement as referred to in paragraph (2). (4) In the event that the Sharia Rural Financing Bank does not implement the upgrade of the status of a Cash Office to a Branch Office within the time frame as referred to in paragraph (1), the permission to upgrade the status of a Cash Office to a Branch Office that has been granted is declared void and invalid. (5) In the event that the Financial Services Authority's online reporting system is not yet available, the Sharia Rural Financing Bank is required to submit the report as referred to in paragraph (3) offline. (6) The obligation to submit the report as referred to in paragraph (5) must be carried out within a maximum of 10 (ten) Working Days calculated from the date of the implementation of the Branch Office opening accompanied by proof of announcement as referred to in paragraph (2).

Article 119
(1) A Sharia Rural Financing Bank submits an application for a plan to downgrade the status of a Branch Office to a Cash Office as referred to in Article 113 paragraph (2) letter b to the Financial Services Authority accompanied by the Application Document for Permission to Downgrade Office Network Status listed in Appendix Section M which is an integral part of this Financial Services Authority Regulation. (2) The Financial Services Authority processes the application and provides confirmation of the application as referred to in paragraph (1) within a maximum of 20 (twenty) Working Days from the date the application accompanied by the required documents is received completely. (3) The time limit as referred to in paragraph (2) does not include the time given to the Sharia Rural Financing Bank to complete, correct, and/or update the documents required in the application for downgrading the status of a Branch Office to a Cash Office.

Article 120
(1) The Otoritas Jasa Keuangan conducts research on the completeness of the document requirements for the application as referred to in Article 119 paragraph (1).
(2) In the event that, based on the research on the completeness of the documents as referred to in paragraph (1), the documents are incomplete, the Otoritas Jasa Keuangan notifies the BPRS to complete the missing documents and resubmit them to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days from the date of notification from the Otoritas Jasa Keuangan. (3) In the event that the BPRS does not complete, repair, and/or update the missing documents within the time period as referred to in paragraph (2), the application to reduce the status of the Branch Office to a Cash Office is rejected.

Article 121
(1) A BPRS that obtains confirmation of the reduction of the status of a Branch Office to a Cash Office as referred to in Article 119 paragraph (2) must open a Cash Office within a maximum of 20 (twenty) Working Days from the date of confirmation from the Otoritas Jasa Keuangan. (2) A BPRS must announce the implementation of the reduction of the status of a Branch Office to a Cash Office as referred to in paragraph (1) to the public on the announcement board at the BPRS office that has reduced the status of the Cash Office within a maximum of 5 (five) Working Days since the BPRS obtained confirmation from the Otoritas Jasa Keuangan. (3) A BPRS must submit a report on the implementation of the reduction of the status of a Branch Office to a Cash Office as referred to in paragraph (1) online through the Otoritas Jasa Keuangan reporting system in the reporting period of the date of implementation of the opening of the Cash Office, accompanied by proof of announcement as referred to in paragraph (2). (4) In the event that the BPRS does not open a Cash Office within the time limit as referred to in paragraph (1), the confirmation from the Otoritas Jasa Keuangan is declared void and invalid. (5) In the event that the Otoritas Jasa Keuangan online reporting system is not yet available, the BPRS must submit the report as referred to in paragraph (3) offline. (6) The obligation to submit the report as referred to in paragraph (5) is carried out within a maximum of 10 (ten) Working Days calculated from the date of implementation of the opening of the Cash Office accompanied by proof of announcement as referred to in paragraph (2).

Sixth Section
Closure of Office Network

Article 122
(1) A BPRS must obtain approval from the Otoritas Jasa Keuangan to close a Branch Office.
(2) A BPRS must include the plan to close a Branch Office in the BPRS business plan.
(3) The application to obtain approval to close a Branch Office as referred to in paragraph (1) is submitted to the Otoritas Jasa Keuangan, accompanied by the Document Requirements for the Application for Approval to Close a Branch Office listed in Appendix Section N, which is an integral part of this Otoritas Jasa Keuangan Regulation.

Article 123
(1) The Otoritas Jasa Keuangan processes the application and provides approval or rejection of the application to close a Branch Office as referred to in Article 122 paragraph (3) within a maximum of 10 (ten) Working Days after:
a. the application along with the required documents is received completely; and b. all obligations have been fulfilled.
(2) The time period as referred to in paragraph (1) does not include the time given to the BPRS to complete, repair, and/or update the documents required in the submission of the application to close a Branch Office. (3) In providing approval or rejection as referred to in paragraph (1), the Otoritas Jasa Keuangan conducts research on the completeness of the fulfillment of requirements as referred to in Article 122 paragraph (2) and paragraph (3).

Article 124
(1) The Otoritas Jasa Keuangan conducts research on the completeness of the document requirements for the application as referred to in Article 122 paragraph (3).
(2) In the event that, based on the research on the completeness of the documents as referred to in paragraph (1), the documents are incomplete, the Otoritas Jasa Keuangan notifies the BPRS to complete the missing documents and resubmit them to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days from the date of notification from the Otoritas Jasa Keuangan. (3) In the event that the BPRS does not complete, repair, and/or update the missing documents within the time period as referred to in paragraph (2), the BPRS is considered to have cancelled the application for approval to close a Branch Office. (4) In the event that the application documents for approval to close a Branch Office submitted are deemed complete, the Otoritas Jasa Keuangan notifies the BPRS that the application documents are complete and the approval or rejection process for closing a Branch Office begins running from the date of notification.

Article 125
(1) In conducting research on the fulfillment of requirements as referred to in Article 123 paragraph (3), the Otoritas Jasa Keuangan may request additional and/or repaired documents submitted through notification to the BPRS. (2) Additional and/or repaired documents as referred to in paragraph (1) are submitted to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days from the date of notification from the Otoritas Jasa Keuangan. (3) In the event that the BPRS does not submit additional and/or repaired documents within the time period as referred to in paragraph (2), the application for approval to close a Branch Office is rejected.

Article 126
(1) The operational license of a Branch Office previously granted becomes invalid from the date of approval to close a Branch Office as referred to in Article 122 paragraph (1).
(2) A BPRS must announce the closure of a Branch Office as referred to in paragraph (1) to the public on the announcement board at all BPRS offices, no later than 10 (ten) Working Days from the date of approval from the Otoritas Jasa Keuangan. (3) A BPRS must implement the closure of a Branch Office within a maximum of 20 (twenty) Working Days from the date of approval from the Otoritas Jasa Keuangan. (4) A BPRS must submit a report on the implementation of the closure of a Branch Office online through the Otoritas Jasa Keuangan reporting system in the reporting period of the date of implementation of the closure of a Branch Office, accompanied by proof of announcement as referred to in paragraph (2). (5) In the event that the Otoritas Jasa Keuangan online reporting system is not yet available, the BPRS must submit the report as referred to in paragraph (4) offline. (6) The obligation to submit the report as referred to in paragraph (5) is carried out within a maximum of 10 (ten) Working Days calculated from the date of implementation of the closure of a Branch Office.

Article 127
(1) A BPRS must announce the plan to close a Cash Office and Cash Service Activities to the public on the announcement board at the relevant Cash Office and the BPRS office that is the parent of the Cash Office no later than 10 (ten) Working Days before the date of closure. (2) A BPRS must submit a report on the implementation of the closure of a Cash Office and Cash Service Activities online through the Otoritas Jasa Keuangan reporting system in the reporting period of the date of implementation of the closure of a Cash Office and Cash Service Activities, accompanied by proof of announcement as referred to in paragraph (1). (3) In the event that the Otoritas Jasa Keuangan online reporting system is not yet available, the BPRS must submit the report as referred to in paragraph (2) offline. (4) The obligation to submit the report as referred to in paragraph (3) is carried out within a maximum of 10 (ten) Working Days calculated from the date of implementation of the closure of a Cash Office and Cash Service Activities.

Seventh Section
Office Network in Emergency Conditions
Paragraph 1
Temporary Relocation of Office Network Address

Article 128
(1) A BPRS may temporarily relocate the address of an Office Network for emergency reasons.
(2) A BPRS must announce the temporary relocation of the address of an Office Network as referred to in paragraph (1) to the public on the announcement board at all relevant BPRS offices, local daily newspapers, electronic media, and/or the BPRS website no later than 10 (ten) Working Days after the emergency occurs. (3) A BPRS must submit a report on the implementation of the temporary relocation of the address of an Office Network of a BPRS as referred to in paragraph (1) to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days after the relocation of the address of an Office Network, accompanied by proof of announcement as referred to in paragraph (2). (4) A BPRS must announce the re-relocation of an Office Network to the original location to the public on the announcement board at all relevant BPRS offices, local daily newspapers, electronic media, and/or the BPRS website no later than 10 (ten) Working Days before the date of relocation. (5) A BPRS must submit a report on the re-relocation of the address of an Office Network of a BPRS to the original location to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days from the date of relocation, accompanied by proof of announcement as referred to in paragraph (4).

Paragraph 2
Relocation of Office Network Address

Article 129
(1) A BPRS may relocate the address of an Office Network for emergency reasons.
(2) A BPRS must announce the relocation of the address of an Office Network as referred to in paragraph (1) to the public on the announcement board at all relevant BPRS offices, local daily newspapers, electronic media, and/or the BPRS website no later than 5 (five) Working Days before the relocation of the address of an Office Network. (3) A BPRS must submit a report on the relocation of the address of an Office Network due to emergency conditions as referred to in paragraph (1) to the Otoritas Jasa Keuangan, accompanied by the Document Report on the Relocation of the Address of an Office Network Due to Emergency Conditions listed in Appendix Section O, which is an integral part of this Otoritas Jasa Keuangan Regulation. (4) A BPRS must submit a report on the relocation of the address of an Office Network as referred to in paragraph (3) within a maximum of 20 (twenty) Working Days after the implementation of the relocation of the address of an Office Network.

Paragraph 3
Temporary Closure of Office Network

Article 130
(1) A BPRS may temporarily close an Office Network for emergency reasons.
(2) A BPRS must announce the date of temporary closure of an Office Network as referred to in paragraph (1) to the public on the announcement board at all relevant BPRS offices, local daily newspapers, electronic media, and/or the BPRS website no later than 5 (five) Working Days after the emergency occurs. (3) A BPRS must submit a report on the implementation of the temporary closure of an Office Network of a BPRS as referred to in paragraph (1) to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days after the implementation of the temporary closure of an Office Network, accompanied by proof of announcement as referred to in paragraph (2). (4) A BPRS must submit a report on the reopening of an Office Network to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days from the date of reopening of an Office Network.

Article 131
(1) A BPRS that violates the provisions as referred to in Article 88 paragraph (1), Article 93 paragraph (1), Article 95 paragraph (2), Article 97, Article 98 paragraph (2), paragraph (3), Article 99 paragraph (4), Article 101, Article 103 paragraph (1), Article 108 paragraph (1), Article 109 paragraph (1), Article 112 paragraph (3), Article 114 paragraph (1), Article 118 paragraph (1), paragraph (2), Article 121 paragraph (1), paragraph (2), Article 122 paragraph (1), Article 126 paragraph (2), paragraph (3), Article 127 paragraph (1), Article 128 paragraph (2), paragraph (4), Article 129 paragraph (2), paragraph (4), and/or Article 130 paragraph (2), is subject to administrative sanctions in the form of a written warning. (2) In the event that a BPRS has been subject to administrative sanctions as referred to in paragraph (1), and continues to violate the provisions as referred to in Article 88 paragraph (1), Article 93 paragraph (1), Article 95 paragraph (2), Article 97, Article 98 paragraph (2), paragraph (3), Article 99 paragraph (4), Article 101, Article 103 paragraph (1), Article 108 paragraph (1), Article 109 paragraph (1), Article 112 paragraph (3), Article 114 paragraph (1), Article 118 paragraph (1), paragraph (2), Article 121 paragraph (1), paragraph (2), Article 122 paragraph (1), Article 126 paragraph (2), paragraph (3), Article 127 paragraph (1), Article 128 paragraph (2), paragraph (4), Article 129 paragraph (2), paragraph (4), and/or Article 130 paragraph (2), the BPRS is subject to administrative sanctions in the form of a downgrade of the BPRS health level. (3) A BPRS that violates the provisions as referred to in Article 93 paragraph (2), Article 96 paragraph (1), Article 100 paragraph (1), Article 102 paragraph (2), Article 108 paragraph (2), Article 109 paragraph (2), Article 110 paragraph (2), Article 111 paragraph (3), paragraph (4), Article 112 paragraph (4), paragraph (5), Article 118 paragraph (3), Article 121 paragraph (3), Article 126 paragraph (4), Article 127 paragraph (2), Article 128 paragraph (3), paragraph (5), Article 130 paragraph (3), and/or paragraph (4) is subject to administrative sanctions in accordance with the Otoritas Jasa Keuangan Regulation regarding reporting of rural credit banks and Sharia people's financing banks through the Otoritas Jasa Keuangan reporting system. (4) A BPRS that is late in submitting reports or proof of announcements as referred to in Article 93 paragraph (3), Article 96 paragraph (2), Article 100 paragraph (2), Article 102 paragraph (3), Article 108 paragraph (3), Article 109 paragraph (3), Article 110 paragraph (3), Article 118 paragraph (5), Article 121 paragraph (5), Article 126 paragraph (5), Article 127 paragraph (3), and/or Article 129 paragraph (4) is subject to administrative sanctions in the form of a fine of Rp100,000.00 (one hundred thousand rupiah) per Working Day and a maximum of Rp5,000,000.00 (five million rupiah). (5) A BPRS that has been subject to
administrative sanctions in the form of a fine as referred to in paragraph (4) continues to submit reports or proof of announcements.

CHAPTER VIII
SYNERGY OF BPRS

Article 132
(1) A BPRS may conduct banking synergy.
(2) Banking synergy as referred to in paragraph (1) includes synergy:
a. BPRS with BUS, BUK, BPRS and/or BPR that have the same PSP as the BPRS; or b. BPRS with BUS or BUK as the PSP of the BPRS.

Article 133
(1) In implementing banking synergy as referred to in Article 132, both parties must make a written cooperation agreement.
(2) The cooperation agreement as referred to in paragraph (1) must at least cover:
a. the parties conducting the cooperation; b. the objectives and scope of cooperation;
c. the duration of the cooperation agreement; and
d. the rights and obligations of each party at least regarding:

the obligation of both parties to maintain the confidentiality and security of information, including the confidentiality and security of information for customer data protection purposes;
responsibility for losses, in the event of system failure, fraud, and/or failure from internal and other external factors;
risk mitigation, including in the event of cooperation termination before maturity;
handling customer complaints, in the event that synergy relates directly to customers;
knowledge transfer aspects, in the event that synergy involves human resources from the parties conducting the synergy; and
management and maintenance of documentation of activities or the scope of cooperation conducted.
(3) The cooperation agreement is drafted by both parties accompanied by documents from the competent compliance unit officials stating that banking synergy has met the aspects as referred to in paragraph (2). (4) Banking synergy embodied in a written cooperation agreement as referred to in paragraph (1) is based on a fair cooperation relationship. (5) The party receiving benefits is responsible for the risks arising from business decisions, services, and/or operations from the implementation of banking synergy. (6) Both parties must ensure that the implementation of banking synergy is in accordance with the cooperation agreement. (7) Parties as referred to in Article 132 paragraph (2) that conduct synergy related to the provision of information technology services are exempt from approval from the Otoritas Jasa Keuangan in accordance with the Otoritas Jasa Keuangan Regulation regarding the implementation of information technology by commercial banks.

Article 134
(1) The implementation of banking synergy of a BPRS must be accompanied by a DPS opinion.
(2) The synergizing parties must submit to the Otoritas Jasa Keuangan:
a. a copy of the cooperation agreement; and b. the DPS opinion, within a maximum of 5 (five) Working Days from the date of the cooperation agreement.
(3) In the event of changes to the cooperation agreement, the BPRS must report to the Otoritas Jasa Keuangan within a maximum of 5 (five) Working Days from the date of the cooperation agreement changes, accompanied by a copy of the cooperation agreement changes. (4) In the event that there will be cooperation termination before the duration of the cooperation agreement is completed, the BPRS must report to the Otoritas Jasa Keuangan within a maximum of 30 (thirty) Working Days before the effective date of termination of the cooperation agreement.

Article 135
(1) A BPRS that violates the provisions as referred to in Article 133 paragraph (6) and/or Article 134 is subject to administrative sanctions in the form of a written warning.
(2) A BPRS that is late in fulfilling the obligation to submit documents or reports as referred to in Article 134 paragraph (2), paragraph (3), and/or paragraph (4) is subject to administrative sanctions in the form of a fine of Rp100,000.00 (one hundred thousand rupiah) per Working Day and a maximum of Rp5,000,000.00 (five million rupiah). (3) In the event that a BPRS has been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2), and continues to violate the provisions as referred to in Article 133 paragraph (6) and/or Article 134, the BPRS is subject to administrative sanctions in the form of:
a. prohibition to expand business activities; and/or b. suspension of certain business activities.
(4) A BPRS that has been subject to administrative sanctions in the form of a fine as referred to in paragraph (3) continues to submit reports.
(5) In the event that a BPRS has been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) and continues to violate the provisions as referred to in Article 133 paragraph (6) and/or Article 134, the principal party of the BPRS may be subject to administrative sanctions in the form of prohibition as a principal party in accordance with the Otoritas Jasa Keuangan Regulation regarding the reassessment of the principal parties of financial service institutions.

CHAPTER IX
CHANGE OF BPRS NAME

Article 136
(1) The change of name of a BPRS must meet the provisions of legislation.
(2) A BPRS that changes its name must prepare:
a. adjustments to the writing of the name on nameplates, documents, forms, and instruments in accordance with the new name of the BPRS; b. supplies of deposit receipts, savings books, forms, and instruments in accordance with the new name of the BPRS. (3) A BPRS that has obtained approval for the amendment of the articles of association regarding the use of the new name from the competent agency must:
a. announce the name change to the public on the announcement board at all BPRS offices and local daily newspapers, electronic media, and/or the BPRS website, no later than 10 (ten) Working Days from the date of approval of the amendment of the articles of association from the competent agency; and b. submit an application for confirmation of the use of the BPRS business license with the new name to the Otoritas Jasa Keuangan within a maximum of 5 (five) Working Days since the announcement of the name change as referred to in letter a. (4) The BPRS submits the application as referred to in paragraph (3) letter b accompanied by requirement documents referring to the Document Application for Confirmation of Use of BPRS Business License with New Name listed in Appendix Section P, which is an integral part of this Otoritas Jasa Keuangan Regulation.

Article 137
(1) The Otoritas Jasa Keuangan processes the application and provides confirmation of the determination of the use of the BPRS business license with the new name as referred to in Article 136 paragraph (4) within a maximum of 20 (twenty) Working Days from the application accompanied by the required documents received completely. (2) The time period as referred to in paragraph (1) does not include the time given to the BPRS to complete, repair, and/or update the documents required in the submission of the application for confirmation of the determination of the use of the BPRS business license with the new name. (3) In providing confirmation of the application for the determination of the BPRS business license with the new name as referred to in paragraph (1), the Otoritas Jasa Keuangan conducts research on the fulfillment of requirements.

Article 138
(1) The Otoritas Jasa Keuangan conducts research on the completeness of the document requirements for the application as referred to in Article 136 paragraph (4).
(2) In the event that, based on the research on the completeness of the documents as referred to in paragraph (1), the documents are incomplete, the Otoritas Jasa Keuangan notifies the BPRS to complete the missing documents and resubmit them to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days from the date of notification from the Otoritas Jasa Keuangan. (3) In the event that the BPRS does not complete the missing documents within the time period as referred to in paragraph (2), the Otoritas Jasa Keuangan may issue a letter of objection regarding the use of the new name of the BPRS. (4) In the event that the application documents for the determination of the BPRS business license with the new name submitted are deemed complete, the Otoritas Jasa Keuangan notifies the BPRS that the documents are complete and the confirmation process of the determination of the BPRS business license with the new name begins running from the date of notification.

Article 139
(1) A BPRS that violates the provisions as referred to in Article 136 paragraph (2) and/or paragraph (3) letter a is subject to administrative sanctions in the form of a written warning.
(2) In the event that a BPRS has been subject to administrative sanctions as referred to in paragraph (1), and continues to violate the provisions as referred to in Article 136 paragraph (2) and/or paragraph (3) letter a, the BPRS is subject to administrative sanctions in the form of a downgrade of the BPRS health level. (3) A BPRS that is late in fulfilling the obligation to submit documents or reports as referred to in Article 136 paragraph (3) letter b is subject to administrative sanctions in the form of a fine of Rp100,000.00 (one hundred thousand rupiah) per Working Day and a maximum of Rp5,000,000.00 (five million rupiah). (4) A BPRS that has been subject to administrative sanctions in the form of a fine as referred to in paragraph (3) continues to submit documents or reports.

CHAPTER X
REVOCATION OF BUSINESS LICENSE UPON REQUEST OF SHAREHOLDERS
Article 140
The Financial Services Authority is authorized to revoke the business license of an Islamic Microfinance Bank (BPRS) upon the request of its shareholders.

Article 141
(1) A BPRS may apply for revocation of its business license upon the request of its shareholders as referred to in Article 140, provided that the BPRS is not under special supervision by the Financial Services Authority in accordance with the Financial Services Authority Regulation concerning the determination of status and follow-up of supervision of rural credit banks and Islamic microfinance banks. (2) In the event that a BPRS under intensive supervision applies for revocation of its business license upon the request of its shareholders, the application must be submitted no later than 6 (six) months before the expiration of the intensive supervision period or its extension.

Article 142
Revocation of the business license upon the request of BPRS shareholders as referred to in Article 140 is conducted in 2 (two) stages:
a. approval of preparation for revocation of business license; and b. decision on revocation of business license.

Article 143
(1) A BPRS submits an application for approval of preparation for revocation of business license as referred to in Article 142 letter a, attached with the Application Document for Approval of Preparation for Revocation of Business License Upon Request of Shareholders contained in Appendix Part R, which is an integral part of this Financial Services Authority Regulation. (2) Based on certain considerations, the Financial Services Authority is authorized to set an escrow fund amount higher than the escrow fund amount proposed by the BPRS.

Article 144
(1) The Financial Services Authority processes the application and provides approval or rejection of the application as referred to in Article 143 paragraph (1) no later than 20 (twenty) Working Days since the application accompanied by the required documents is received completely. (2) The time period as referred to in paragraph (1) does not include the time given to the BPRS to complete, repair, and/or update the documents required in the application for approval of preparation for revocation of business license. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts research on the fulfillment of requirements, which includes:
a. analysis of the plan to settle all obligations of the BPRS; and b. analysis of the cash flow projection as well as the amount of obligations and assets of the BPRS.

Article 145
(1) The Financial Services Authority conducts research on the completeness of the requirement documents for the application as referred to in Article 143 paragraph (1).
(2) In the event that based on the research on the completeness of documents as referred to in paragraph (1) is not yet complete, the Financial Services Authority notifies the BPRS to complete the missing documents and resubmit them to the Financial Services Authority no later than 10 (ten) Working Days since the date of the notification letter from the Financial Services Authority. (3) In the event that the BPRS cannot complete, repair, and/or update the missing documents within the time period as referred to in paragraph (2), the BPRS is deemed to have canceled the application for approval of preparation for revocation of business license. (4) In the event that the application documents for approval of preparation for revocation of business license submitted are assessed as complete, the Financial Services Authority notifies the BPRS that the documents are complete and the preparation for revocation of business license permit begins to run as of the date of notification.

Article 146
(1) In conducting research on the fulfillment of requirements as referred to in Article 144 paragraph (3), the Financial Services Authority may request additional and/or corrected documents from the BPRS. (2) Additional and/or corrected documents as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 20 (twenty) Working Days since the date of notification from the Financial Services Authority. (3) In the event that the BPRS cannot submit additional and/or corrected documents within the time limit as referred to in paragraph (2), the application for approval of preparation for revocation of business license is rejected.

Article 147
(1) A BPRS that has obtained approval for preparation for revocation of its business license must:
a. cease all business activities of the BPRS, except in the settlement of BPRS obligations and assets; b. announce the plan to dissolve the legal entity of the BPRS and the plan to settle BPRS obligations to the public on the announcement board at all offices of the relevant BPRS and in local daily newspapers, electronic mass media, and/or the BPRS website no later than 10 (ten) Working Days since the date of approval for preparation for revocation of business license of the BPRS;
c. settle all obligations of the BPRS within a time limit of no later than 6 (six) months since the date of the approval letter for preparation for revocation of business license of the BPRS; and
d. appoint a public accounting firm to conduct verification of the final balance sheet, including ensuring the settlement of all obligations of the BPRS.
(2) In the event that:
a. the BPRS cannot settle all obligations within the time period as referred to in paragraph (1) letter c; and/or b. the BPRS experiences a decline in financial condition and meets the criteria determined in special supervision, the approval for preparation for revocation of business license that has been granted is declared void and invalid.

Article 148
A BPRS submits an application for the decision on revocation of its business license to the Financial Services Authority as referred to in Article 142 letter b after all obligations of the BPRS are settled, accompanied by the Application Document for Decision on Revocation of Business License of the BPRS contained in Appendix Part S, which is an integral part of this Financial Services Authority Regulation.

Article 149
(1) The Financial Services Authority conducts research on the completeness of the requirement documents for the application as referred to in Article 148.
(2) In the event that based on the research on the completeness of documents as referred to in paragraph (1) is not yet complete, the Financial Services Authority notifies the BPRS to complete the missing documents and resubmit them to the Financial Services Authority no later than 10 (ten) Working Days since the date of notification from the Financial Services Authority. (3) In the event that the BPRS does not complete, repair, and/or update the missing documents within the time limit as referred to in paragraph (2), the BPRS is deemed to have canceled the application for the decision on revocation of business license. (4) In the event that the application documents as referred to in Article 148 are assessed as complete, the Financial Services Authority:
a. notifies the BPRS that the documents are complete; b. issues the Decision on Revocation of Business License of the BPRS;
c. orders the BPRS to dissolve the legal entity in accordance with the provisions of legislation; and
d. orders the BPRS to announce the termination or dissolution of the legal entity in accordance with the provisions of legislation.
(5) Shareholders of the BPRS remain responsible for all unfulfilled obligations of the BPRS since the date the revocation of business license is issued.

Article 150
The status of the legal entity of the BPRS ends or is dissolved as of the date of the announcement of the termination or dissolution of the legal entity of the BPRS in the State Gazette of the Republic of Indonesia.

Article 151
(1) A BPRS that violates the provisions as referred to in Article 147 paragraph (1) is subject to administrative sanctions in the form of a written reprimand.
(2) In the event that the BPRS has been subject to administrative sanctions as referred to in paragraph (1) and continues to violate the provisions as referred to in Article 147 paragraph (1), the BPRS is subject to administrative sanctions in the form of:
a. reduction of the BPRS health level; b. prohibition on expanding business activities and/or Office Network;
c. temporary cessation of some operational activities of the BPRS; and/or
d. postponement of the right to receive dividends for shareholders.

CHAPTER XI
OTHER PROVISIONS
Article 152
Implementation:
a. presentation or exposition of prospective Principal Shareholders (PSP), clarification of prospective members of the Board of Directors and/or prospective members of the Board of Commissioners during the assessment of competence and propriety; and/or b. interviews with prospective members of the Sharia Supervisory Board (DPS), can be conducted in person directly or through information technology media.

CHAPTER XII
TRANSITIONAL PROVISIONS
Article 153
(1) Principle approvals for the establishment of BPRS that have been granted by the Financial Services Authority before this Financial Services Authority Regulation comes into force are declared to remain valid. (2) Prospective PSPs that have obtained principle approval as referred to in paragraph (1) may apply for a business license for the establishment of a BPRS accompanied by requirement documents in accordance with Financial Services Authority Regulation Number 3/POJK.03/2016 concerning Islamic Microfinance Banks (State Gazette of the Republic of Indonesia Year 2016 Number 15, Supplement to the State Gazette of the Republic of Indonesia Number 5839). (3) Members of the Board of Directors and members of the Board of Commissioners who do not yet have work competency certificates before this Financial Services Authority Regulation comes into force must fulfill work competency certification no later than 2 (two) years since their appointment in accordance with Financial Services Authority Regulation Number 3/POJK.03/2016 concerning Islamic Microfinance Banks (State Gazette of the Republic of Indonesia Year 2016 Number 15, Supplement to the State Gazette of the Republic of Indonesia Number 5839). (4) BPRSs that have obtained principle approval for the opening of Branch Offices, or the relocation of the head office and/or Branch Offices before this Financial Services Authority Regulation comes into force, may still follow up on license applications in accordance with Financial Services Authority Regulation Number 3/POJK.03/2016 concerning Islamic Microfinance Banks (State Gazette of the Republic of Indonesia Year 2016 Number 15, Supplement to the State Gazette of the Republic of Indonesia Number 5839). (5) Plans to open or relocate Cash Offices, change names, and close Office Networks that have been submitted to the Financial Services Authority before this Financial Services Authority Regulation comes into force, but have not yet obtained approval and/or confirmation from the Financial Services Authority, must fulfill the provisions in this Financial Services Authority Regulation. (6) BPRSs that have obtained principle approval for revocation of business license before this Financial Services Authority Regulation comes into force, applications to obtain approval for revocation of business license still refer to the provisions in Financial Services Authority Regulation Number 3/POJK.03/2016 concerning Islamic Microfinance Banks (State Gazette of the Republic of Indonesia Year 2016 Number 15, Supplement to the State Gazette of the Republic of Indonesia Number 5839).

CHAPTER XIII
CLOSING PROVISIONS
Article 154
At the time this Financial Services Authority Regulation comes into force, provisions regarding the limitation of the Office Network area of BPRS resulting from merger or consolidation in accordance with Financial Services Authority Regulation Number 21/POJK.03/2019 concerning Merger, Consolidation, and Takeover of Rural Credit Banks and Islamic Microfinance Banks (State Gazette of the Republic of Indonesia Year 2019 Number 164, Supplement to the State Gazette of the Republic of Indonesia Number 6383) are declared to remain in force insofar as they do not conflict with the provisions in this Financial Services Authority Regulation.

Article 155
At the time this Financial Services Authority Regulation comes into force, Financial Services Authority Regulation Number 3/POJK.03/2016 concerning Islamic Microfinance Banks (State Gazette of the Republic of Indonesia Year 2016 Number 15, Supplement to the State Gazette of the Republic of Indonesia Number 5839) and its implementing regulations are revoked and declared invalid.

Article 156
This Financial Services Authority Regulation comes into force on the date of its promulgation.

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

In order that everyone may know it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on 26 December 2022
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

Promulgated in Jakarta on 26 December 2022
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2022 NUMBER 32/OJK

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 26 OF 2022
CONCERNING
ISLAMIC MICROFINANCE BANKS

I. GENERAL
To encourage the sustainable growth of the national economy, it is necessary to formulate regulations and policies that enhance the creation of a strong, healthy, and competitive national banking industry, including Islamic microfinance banks, capable of serving the community, especially micro and small businesses. Implementation of current regulations regarding Islamic Microfinance Banks (BPRS) needs to be improved to realize an increase in the competitiveness and contribution of BPRS to the regional economy and the national banking industry. Based on the above, it is necessary to update Financial Services Authority Regulation Number 3/POJK.03/2016 concerning Islamic Microfinance Banks.

II. ARTICLE BY ARTICLE
Article 1
Clear enough.

Article 2
Clear enough.

Article 3
Clear enough.
In line with the goal of enhancing the role and function of the national banking industry comprehensively to create financial system stability, the institutional structure of the BPRS industry needs to be strengthened, including through capital strengthening and competitiveness enhancement from the initial establishment, in line with efforts to create industry consolidation. Increasing the role of BPRS owners through institutional restructuring and commitment is also needed to maintain BPRS business continuity. Increasing the role of management and strengthening the Office Network amidst high technology utilization is expected to provide services with a direct approach to the community. Furthermore, the improvement of the BPRS business license revocation mechanism upon shareholder request is necessary to provide certainty for obligation settlement to customers and the community related to consumer protection efforts. All these efforts can be realized well through the improvement of requirements and procedures as well as improvements in the institutional licensing mechanism and stages of BPRS.

Article 4
Paragraph (1)
Letter a
What is meant by "Indonesian legal entity" is an Indonesian legal entity recorded in the ministry that handles government affairs in the field of law and human rights and/or regulated based on legislative provisions as a legal entity. Letter b What is meant by "local government" is provincial local government, regency local government, and/or city local government in accordance with the Law concerning local government. Letter c Clear enough. Paragraph (2) Clear enough. Paragraph (3) What is meant by "certain considerations" is based on factors such as the economic and sociological conditions of certain areas and the continuity of BPRS business.

Article 5
Paragraph (1)
Letter a
Clear enough.
Letter b
Changes to PSP include:

replacement of PSP; and/or
addition of PSP.
Paragraph (2)
Clear enough.

Article 6
Paragraph (1)
Clear enough.
Paragraph (2)
The determination of a higher paid-up capital amount is based on considerations, including:
a. different regional economic developments within the same zone group; b. changes in the number and performance of financial service institutions;
c. continuity of future BPRS business development which impacts changes in operational cost needs; and/or
d. alignment with central and/or local government policies.
Paragraph (3)
What is meant by "working capital" is all current assets including cash, financing provided, interbank fund placements, and securities.
Working capital does not include establishment and pre-operational costs of the BPRS.
Fulfillment of the working capital usage percentage of at least 50% (fifty percent) is directed at the initial establishment of the BPRS.
Paragraph (4)
Zone 1 indicates a zone with the highest economic potential and the strictest level of financial service institution competition, while Zone 3 indicates a zone with the lowest economic potential and the loosest level of financial service institution competition.

Article 7
Paragraph (1)
Example of writing the description on the capital deposit on the deposit receipt:
"Commissioners Board of the Financial Services Authority q.q. Mr. 'A'".
With the description:
"for the establishment of PT BPRS 'XYZ' and its withdrawal can only be done after obtaining approval from the Financial Services Authority."
Deposit receipts that cannot contain descriptions regarding the purpose of opening the deposit and approval of deposit withdrawal are supplemented with a separate letter containing descriptions regarding the purpose of opening the deposit and the purpose of deposit withdrawal, signed by an official of a general bank or another BPRS authorized at the bank where the deposit is placed. Paragraph (2) Example:
A prospective PSP intending to establish a BPRS in Zone 3 with a paid-up capital requirement of Rp15,000,000,000.00 (fifteen billion rupiah) must place the paid-up capital in the form of a deposit worth Rp15,000,000,000.00 (fifteen billion rupiah) at the time of submitting the application for principle approval for the establishment of the BPRS.

Article 8
Clear enough.

Article 9
Letter a
What is meant by "principle approval" is approval to conduct establishment preparations.
Letter b
What is meant by "business license" is a license granted to conduct BPRS business activities after establishment preparations have been completed.

Article 10
Paragraph (1)
Submission to the Financial Services Authority is directed to the Head of Executive Banking Supervisor u.p. Director of Islamic Banking Regulation and Licensing with a copy to the Head of Regional Financial Services Authority or Head of Financial Services Authority according to the location of the BPRS domicile. Paragraph (2) Clear enough. Paragraph (3) Clear enough.

Article 11
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Letter a
Clear enough.
Letter b
Competence and propriety assessment is conducted on prospective PSPs, prospective members of the Board of Directors, prospective members of the Board of Commissioners, and interviews are conducted with prospective members of the DPS. Letter c Clear enough. Letter d What is meant by "research on the financial performance and fulfillment of regulations on BPRS and/or other financial service institutions owned by the prospective PSP" includes:

not in a loss condition, i.e., not in a condition reflecting a tendency to increase losses experienced by the company both in the current year and cumulatively in previous years caused by structural problems or main business activities of the company;
having healthy capital, liquidity, and profitability ratios referring to the applicable assessment standards for each financial service institution; and
not having regulatory violations that cause the BPRS and/or other financial service institutions to potentially experience losses based on regulations governing each financial service institution.
Paragraph (4)
Plans and strategies for BPRS development explained in the presentation or exposition include, among others:
a. objectives and reasons for establishing the BPRS; b. potential and feasibility analysis; and
c. funding sources and financial capacity to maintain solvency and BPRS growth.

Article 12
Paragraph (1)
What is meant by "research on the completeness of requirement documents" is conducting research according to a checklist, including the latest information from:
a. fail list; b. suspected terrorist and terrorist organization list;
c. weapons of mass destruction proliferation financing list; and
d. non-performing financing list of prospective shareholders, prospective PSPs, prospective members of the Board of Directors, prospective members of the Board of Commissioners, and prospective members of the DPS. Paragraph (2) Notification can be done electronically or in writing. Paragraph (3) Clear enough. Paragraph (4) Clear enough.

Article 13
Clear enough.

Article 14
Paragraph (1)
Example:
If principle approval is granted on January 2, 2023, then the principle approval period ends on January 1, 2024.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.

Article 15
Submission to the Financial Services Authority is directed to the Head of Executive Banking Supervisor u.p. Director of Islamic Banking Regulation and Licensing with a copy to the Head of Regional Financial Services Authority or Head of Financial Services Authority according to the location of the BPRS domicile.

Article 16
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Letter a
Competence and propriety assessment on prospective PSPs, prospective members of the Board of Directors, prospective members of the Board of Commissioners, and interviews with prospective members of the DPS, in the event of replacement and/or addition of candidates proposed at the time of principle approval. Letter b Clear enough. Letter c Clear enough.

Article 17
Clear enough.

Article 18
Clear enough.

Article 19
Paragraph (1)
Clear enough.
Paragraph (2)
What is meant by "fund collection and disbursement" is conducting:
a. fund collection originating from the community and/or BPRS owners or related parties; and b. fund disbursement to the community other than BPRS owners and/or related parties.
Paragraph (3)
Clear enough.
Paragraph (4)
Not conducting business activities includes BPRSs that have already conducted business activities but:
a. are not actively conducting business activities in the form of fund collection and disbursement; and b. do not provide banking services on operational working days and hours of the BPRS.
Fulfillment of the criteria for not actively conducting business activities is indicated in the monthly BPRS reports in accordance with Financial Services Authority Regulations concerning reporting of rural credit banks and Islamic microfinance banks through the Financial Services Authority reporting system.

Article 20
Example of writing the name of BPRS ABC:
a. Islamic Microfinance Bank "ABC"; b. BPR Syariah "ABC";
c. BPRS "ABC";
d. PT Islamic Microfinance Bank "ABC"; e. PT BPR Syariah "ABC"; or f. PT BPRS "ABC".

Article 21
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
What is meant by "simultaneously" is the revocation of the business license of a Sharia Business Bank (BUS) or Sharia Rural Credit Bank (BUK) is done on the same date as the granting of the business license of the BPRS. The change of business license from BUK to BPRS business license is conducted in one unified process with the change of business activities from conventional to Sharia principles. Paragraph (4) Example:
BUS or BUK that obtains a business license as a BPRS on January 2, 2023, must adjust its form and business activities to become a BPRS no later than January 1, 2024.
During the transition period, BPRSs resulting from business license changes must include the name of the BUS or BUK before the change after the BPRS name.
Example:
PT Islamic Microfinance Bank Nur Sejahtera Sentosa (formerly PT Sharia Bank Nur Sejahtera Sentosa).
Paragraph (5)
In setting different time periods, the Financial Services Authority will consider among others the level of complexity of the process of ceasing business activities of BUS or BUK which is not permitted for BPRS and/or the adjustment of the type and area of the Office Network, as well as the realization of the implementation of action plans carried out and submitted by BUS or BUK to the Financial Services Authority.

Article 22
Submission to the Financial Services Authority is directed to the Head of Executive Banking Supervisor u.p. Director of Islamic Banking Regulation and Licensing with a copy to the Bank Supervision Department, Head of Regional Financial Services Authority or Head of Financial Services Authority according to the location of the BUS or BPRS domicile.

Article 23
Clear enough.

Article 24
Clear enough.

Article 25
Clear enough.

Article 26
Clear enough.

Article 27
Paragraph (1)
Action plans regarding the change of status of an open company to a closed company are conducted in accordance with the provisions of legislation in the capital market sector.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.

Article 28
Clear enough.

Article 29
Clear enough.

Article 30
Paragraph (1)
Letter a
Including giro deposits and related giro activities, including:
a. giro transactions; b. giro accounts of general banks or Sharia Business Units at Bank Indonesia; and/or
c. participation through Bank Indonesia Real Time Gross Settlement (BI-RTGS), Bank Indonesia Scripless Securities Settlement System (BI-SSSS), Bank Indonesia National Clearing System (SKNBI), and Bank Indonesia Fast Payment (BI-FAST).
Letter b
Including business activities in foreign currency covering:
a. fund mobilization; b. fund disbursement, whether in the form of fund disbursement and placement in other banks;
c. trade finance such as letters of credit and bank guarantees in foreign currency; and/or
d. treasury.
Letter c
Is sufficiently clear.
Letter d
Is sufficiently clear.
Letter e
Is sufficiently clear.
Letter f
Is sufficiently clear.
Letter g
The term "other business activities not permitted for BPRS" includes the issuance of domestic documentary letters of credit, bank guarantees, and business activities regulated by other authorities.
Paragraph (2)
The term "carrying out the settlement of remaining BUS or BUK portfolios" refers to:
a. not conducting new transactions or providing BUS or BUK products; b. not conducting business activities as BUS or BUK; and
c. settling and/or transferring the rights and obligations of BUS or BUK.
Paragraph (3)
Is sufficiently clear.

Article 31
Is sufficiently clear.

Article 32
Is sufficiently clear.

Article 33
Is sufficiently clear.

Article 34
Paragraph (1)
Copies of the Financial Services Authority decisions are sent to interested parties, including:
a. Bank Indonesia; and b. Deposit Insurance Agency.
Paragraph (2)
Is sufficiently clear.

Article 35
Is sufficiently clear.

Article 36
Is sufficiently clear.

Article 37
Is sufficiently clear.

Article 38
Is sufficiently clear.

Article 39
Is sufficiently clear.

Article 40
Is sufficiently clear.

Article 41
Paragraph (1)
Letter a
The term "net own capital" for a limited liability company, regional public enterprise, or regional state-owned enterprise refers to the sum of paid-up capital, reserves, and profits, minus participations and losses. The term "net own capital" for a cooperative legal entity refers to the sum of principal deposits, mandatory deposits, reserve funds, and grants, minus participations and losses. Participations made by the legal entity owner of BPRS, namely the investment of funds in the form of shares or other forms proving ownership, whether in rupiah or foreign currency, in a business entity for long-term investment purposes and not intended for trading. Such participations can be made directly or through the capital market. Letter b Other Indonesian legal entities include foundations. Paragraph (2) Is sufficiently clear. Paragraph (3) Is sufficiently clear. Paragraph (4) Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Article 42
Is sufficiently clear.

Article 43
Is sufficiently clear.

Article 44
Paragraph (1)
The term "owner" refers to shareholders, PSP, and the last PSP of the legal entity owner of BPRS.
Letter a
The term "having good character and morality" is indicated by:

a attitude of complying with applicable regulations, including never being punished for proven criminal acts in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions; and
not being subject to criminal sanctions that have obtained permanent legal force.
Letter b
Is sufficiently clear.
Letter c
Is sufficiently clear.
Letter d
Is sufficiently clear.
Letter e
The term "unqualified list" refers to a list managed by the Financial Services Authority containing parties prohibited from becoming principal parties in accordance with the Financial Services Authority Regulation regarding the re-assessment of principal parties of financial service institutions. Letter f Is sufficiently clear. Letter g Is sufficiently clear. Letter h Is sufficiently clear. Letter i Is sufficiently clear. Paragraph (2) Information regarding shareholders is obtained by the Financial Services Authority from various sources, including:
a. research or examination; b. court decisions; and/or
c. other sources whose truthfulness can be verified.
Paragraph (3)
Is sufficiently clear.
Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.
Paragraph (6)
The owner of a legal entity in the form of a limited liability company, regional state-owned enterprise, or regional enterprise is the controlling shareholder.

Article 45
Is sufficiently clear.

Article 46
Is sufficiently clear.

Article 47
Is sufficiently clear.

Article 48
Is sufficiently clear.

Article 49
Is sufficiently clear.

Article 50
Is sufficiently clear.

Article 51
Paragraph (1)
The 60 (sixty) Working Days period includes when the General Meeting of Shareholders (GMS) is held as a second or third GMS.
Paragraph (2)
Is sufficiently clear.
Paragraph (3)
Is sufficiently clear.
Paragraph (4)
Is sufficiently clear.
Paragraph (5)
Is sufficiently clear.
Paragraph (6)
Is sufficiently clear.
Paragraph (7)
Is sufficiently clear.
Paragraph (8)
Is sufficiently clear.

Article 52
Paragraph (1)
Is sufficiently clear.
Paragraph (2)
Is sufficiently clear.
Paragraph (3)
Changes in BPRS share ownership include:
a. replacement of shareholders; b. addition of new shareholders; and/or
c. changes in the composition of share ownership among existing shareholders without replacement or addition of new shareholders;
with or without accompanying increases in paid-up capital.
Paragraph (4)
Is sufficiently clear.
Paragraph (5)
Is sufficiently clear.

Article 53
Is sufficiently clear.

Article 54
Is sufficiently clear.

Article 55
Is sufficiently clear.

Article 56
Is sufficiently clear.

Article 57
Paragraph (1)
The term "change in share ownership composition that does not result in a change in PSP" refers to changes in share ownership that result in or do not result in the replacement, addition, and/or reduction of shareholders. Paragraph (2) Is sufficiently clear.

Article 58
Is sufficiently clear.

Article 59
Is sufficiently clear.

Article 60
Is sufficiently clear.

Article 61
Is sufficiently clear.

Article 62
Is sufficiently clear.

Article 63
Paragraph (1)
The term "professional certification institution" refers to a professional certification institution in accordance with the Financial Services Authority Regulation regarding the management of professional certification institutions in the financial services sector. The implementation of the certification program is in accordance with the Financial Services Authority Regulation regarding work competency certification for members of the Board of Directors and members of the Board of Commissioners of rural credit banks and Sharia rural financing banks, and the Financial Services Authority Regulation regarding the management of professional certification institutions in the financial services sector. Paragraph (2) Is sufficiently clear.

Article 64
Paragraph (1)
The term "majority" refers to more than 50% (fifty percent) of the total number of Board of Directors members.
Paragraph (2)
Is sufficiently clear.
Paragraph (3)
Is sufficiently clear.

Article 65
Paragraph (1)
Is sufficiently clear.
Paragraph (2)
Letter a
Is sufficiently clear.
Letter b
The term "experience in the banking and/or financial sector" includes, among others, experience in marketing, accounting, audit, financing, lending and/or financing, information technology and digital, economic or banking law, or supervision of financial service institutions. Paragraph (3) Is sufficiently clear. Paragraph (4) Is sufficiently clear. Paragraph (5) Is sufficiently clear. Paragraph (6) Is sufficiently clear. Paragraph (7) Is sufficiently clear. Paragraph (8) Is sufficiently clear. Paragraph (9) Is sufficiently clear.

Article 66
Paragraph (1)
Example:
a. The Board of Commissioners conveys in the coordination meeting of the Board of Commissioners with the Board of Directors to fulfill the principle of prudence and Sharia Principles. b. The Board of Commissioners requests explanations from the Board of Directors regarding the fulfillment of the principle of prudence and Sharia Principles. Paragraph (2) Is sufficiently clear.

Article 67
Is sufficiently clear.

Article 68
Is sufficiently clear.

Article 69
Paragraph (1)
Is sufficiently clear.
Paragraph (2)
Is sufficiently clear.
Paragraph (3)
Is sufficiently clear.
Paragraph (4)
The submission of reports through the Financial Services Authority reporting system is done in the monthly BPRS reports in accordance with the Financial Services Authority Regulation regarding reporting by rural credit banks and Sharia rural financing banks through the Financial Services Authority reporting system. Paragraph (5) Is sufficiently clear. Paragraph (6) Is sufficiently clear.

Article 70
Paragraph (1)
Is sufficiently clear.
Paragraph (2)
The term "serving" refers to performing actions, duties, and functions as a member of the Board of Directors and/or member of the Board of Commissioners, including representing BPRS in making decisions that are legally binding on BPRS and/or taking important decisions that affect the financial condition of BPRS. Paragraph (3) Is sufficiently clear. Paragraph (4) Is sufficiently clear. Paragraph (5) Is sufficiently clear.

Article 71
Paragraph (1)
Is sufficiently clear.
Paragraph (2)
Is sufficiently clear.
Paragraph (3)
Is sufficiently clear.
Paragraph (4)
Is sufficiently clear.
Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Prohibitions on becoming members of the Board of Directors and/or members of the Board of Commissioners include:
a. violations of regulations regarding members of the Board of Directors and/or members of the Board of Commissioners, including among others dual positions, family or in-law relationships, requirements for holding work competency certificates; or b. determination of unqualified status as regulated in the Financial Services Authority Regulation regarding the re-assessment of principal parties of financial service institutions.

Article 72
Paragraph (1)
Is sufficiently clear.
Paragraph (2)
Is sufficiently clear.
Paragraph (3)
Is sufficiently clear.
Paragraph (4)
Is sufficiently clear.
Paragraph (5)
Is sufficiently clear.
Paragraph (6)
The minimum limit refers to the minimum limit in accordance with the Financial Services Authority Regulation regarding the application of governance for Sharia rural financing banks.

Article 73
Paragraph (1)
Changes in the position of members of the Board of Directors and/or members of the Board of Commissioners refer to position changes that do not meet the criteria for implementing the assessment of competence and propriety. Example:
A change in the position of a Board of Directors member carried out on November 9 is reported in the November reporting period submitted in December.
Paragraph (2)
Offline submission includes submission in the form of printed copies (hardcopy) and electronic copies (softcopy) via official email.
Paragraph (3)
Is sufficiently clear.

Article 74
Is sufficiently clear.

Article 75
Is sufficiently clear.

Article 76
Is sufficiently clear.

Article 77
Is sufficiently clear.

Article 78
Is sufficiently clear.

Article 79
Is sufficiently clear.

Article 80
Paragraph (1)
Executive Officials include branch office leaders, division heads, section heads, managers, appointed officials responsible for the implementation of risk management, compliance, or internal audit functions, and/or equivalent officials. Those required to be reported include officials who are part of the BPRS organizational structure who have carried out duties and functions as Executive Officials. The term "change" includes among others job transfers. The term "dismissal" includes the resignation of Executive Officials, dismissal by BPRS, or dismissal as a result of the determination of unqualified status by the Financial Services Authority. Paragraph (2) Is sufficiently clear. Paragraph (3) Is sufficiently clear. Paragraph (4) Is sufficiently clear. Paragraph (5) Is sufficiently clear.

Article 81
Paragraph (1)
Research involves searching for information regarding Executive Officials, including:
a. being included in the unqualified list in accordance with the Financial Services Authority Regulation regarding the re-assessment of principal parties of financial service institutions; b. having non-performing loans and/or non-performing financing; and/or
c. being recorded in negative data and information owned by the Financial Services Authority originating from the results of Financial Services Authority supervision or other sources.
Paragraph (2)
Is sufficiently clear.
Paragraph (3)
Is sufficiently clear.

Article 82
Is sufficiently clear.

Article 83
Is sufficiently clear.

Article 84
Paragraph (1)
Is sufficiently clear.
Paragraph (2)
The term "carrying out social functions" includes among others mobilizing social funds such as zakat, infaq, sedekah, and waqf money.
Paragraph (3)
Is sufficiently clear.
Paragraph (4)
Is sufficiently clear.

Article 85
Paragraph (1)
The opening of Office Networks is the opening of BPRS Office Networks, including the opening of offices resulting from the relocation of addresses or changes in the status of BPRS offices.
The term "meeting the minimum core capital of BPRS" includes BPRS that meet the stages of fulfilling minimum core capital in accordance with the Financial Services Authority Regulation regarding the provision of minimum capital and fulfillment of minimum core capital for Sharia rural financing banks. Paragraph (2) Letter a Is sufficiently clear. Letter b The term "certain considerations" includes among others:
a. the BPRS headquarters is located on the border of another province so that it has close proximity to that other province, which is based on among others control range capability and regional typology; or b. having a market supported by potential customers. Paragraph (3) BPRS capital capability is measured based on the minimum capital provision ratio which is assessed to be able to absorb the possibility of arising losses or not endangering the financial performance of BPRS. Business needs are measured based on the feasibility and potential of the market and customers that can be served.

Article 86
Is sufficiently clear.

Article 87
Is sufficiently clear.

Article 88
Paragraph (1)
Is sufficiently clear.
Paragraph (2)
Letter a
In the business plan, the number and area or location of Branch Offices to be opened are mentioned.
Letter b
The term "financial condition" includes among others financial ratios or key financial indicators related to:
a. capital; b. quality of productive assets;
c. liquidity; and
d. profitability.
Letter c
The term "violations of regulations related to BPRS" refers to sanctions contained in Financial Services Authority regulations for BPRS in the form of prohibitions on opening Office Networks and temporary suspension of part of BPRS business activities. Letter d Adequate information technology consists at least of a core banking application (core banking system) specifically in terms of network reliability and security, and diversity of menus or features that can support daily banking transaction or service processes, including electronic updating of transactions to financial records in an integrated or consolidated manner for the entire BPRS Office Network. Adequate information technology is in accordance with the Financial Services Authority Regulation regarding standards for the implementation of information technology for rural credit banks and Sharia rural financing banks. Letter e Is sufficiently clear. Letter f Is sufficiently clear.

Article 89
Is sufficiently clear.

Article 90
Is sufficiently clear.

Article 91
Is sufficiently clear.

Article 92
Is sufficiently clear.

Article 93
Is sufficiently clear.

Article 94
Paragraph (1)
The term "head office" refers to the headquarters or Branch Office that serves as the parent of Cash Offices.
Paragraph (2)
The term "certain considerations" includes among others:
a. control range capability; b. expansion of financial access for the community;
c. efforts to distribute development in regions; and
d. development of head office business activities so that BPRS can develop and operate sustainably.

Article 95
Paragraph (1)
Letter a
Is sufficiently clear.
Letter b
Is sufficiently clear.
Letter c
Is sufficiently clear.
Letter d
Is sufficiently clear.
Letter e
Other activities to support the function of Cash Offices include activities with a technology support component for customer service activities.
Paragraph (2)
Is sufficiently clear.

Article 96
Is sufficiently clear.

Article 97
The term "office" refers to the headquarters, Branch Office, and Cash Office.
The inclusion of the name and type of BPRS office can be done among others through nameplates and/or on the walls or front glass of the BPRS office to be easily visible to customers.
Example:

Writing of Branch Office
PT BANK PEMBIAYAAN RAKYAT SYARIAH/BANK PEMBIAYAAN RAKYAT SYARIAH/PT BPR SYARIAH/BPR SYARIAH/PT BPRS/BPRS DELIMA Sleman Branch Office.
Writing of Cash Office
PT BANK PEMBIAYAAN RAKYAT SYARIAH/BANK PEMBIAYAAN RAKYAT SYARIAH/PT BPR SYARIAH/BPR SYARIAH/PT BPRS/BPRS KURMA Kaliurang Street Cash Office.

Article 98
Paragraph (1)
The implementation of Mobile Cash is carried out using among others cash vehicles, floating cash, or non-permanent BPRS counters, excluding promotional activities.
Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Agreements with other parties can include agreements regarding the payment of electricity, telephone, and/or water bills.

Article 99
Paragraph (1)
Exhibition activities can be carried out individually by BPRS and/or jointly with financial service institutions or other parties.
Paragraph (2)
Is sufficiently clear.
Paragraph (3)
Is sufficiently clear.
Paragraph (4)
Is sufficiently clear.

Article 100
Is sufficiently clear.

Article 101
The term "financial report" refers to reports related to transactions carried out by Cash Offices, Mobile Cash, and Payment Points.

Article 102
Is sufficiently clear.

Article 103
The relocation of the headquarters and/or Branch Office addresses does not include the relocation of floors located in a building with the same address.

Article 104
Is sufficiently clear.

Article 105
Is sufficiently clear.

Article 106
Is sufficiently clear.

Article 107
Is sufficiently clear.

Article 108
Is sufficiently clear.

Article 109
Is sufficiently clear.

Article 110
Is sufficiently clear.

Article 111
Paragraph (1)
The term "operational working days and hours" refers to the days and working hours established by BPRS to conduct business activities and provide services to the community.
Paragraph (2)
The term "national holidays" refers to holidays referring to government decisions regarding national holidays and joint leave.
Paragraph (3)
Is sufficiently clear.
Paragraph (4)
Is sufficiently clear.

Article 112
Paragraph (1)
The term "temporary closure" refers to the temporary suspension of service activities at BPRS offices.
Certain reasons include among others regional holidays that are optional or BPRS office activities that require temporary closure.
Paragraph (2)
The term "calendar year" refers to a year based on the calendar (starting from January 1 and ending on December 31).
Paragraph (3)
To expand the reach of announcements, in addition to posting on announcement boards, BPRS can announce the date of temporary office closure outside of official holidays in among others local daily newspapers, electronic mass media, and/or the BPRS website. Paragraph (4) Proof of announcement includes among others photocopies of announcements posted at the BPRS office or newspaper clippings containing the announcement. Paragraph (5) Is sufficiently clear.

Article 113
Is sufficiently clear.

Article 114
Is sufficiently clear.

Article 115
Is sufficiently clear.

Article 116
Is sufficiently clear.

Article 117
Is sufficiently clear.

Article 118
Is sufficiently clear.

Article 119
Is sufficiently clear.

Article 120
Is sufficiently clear.

Article 121
Is sufficiently clear.

Article 122
Is sufficiently clear.

Article 123
Paragraph (1)
Is sufficiently clear.
Paragraph (2)
Is sufficiently clear.
Paragraph (3)
In conducting research regarding the fulfillment of Branch Office closure requirements, the Financial Services Authority may conduct examinations.

Article 124
Is sufficiently clear.

Article 125
Is sufficiently clear.

Article 126
Is sufficiently clear.

Article 127
Is sufficiently clear.

Article 128
Paragraph (1)
The term "force majeure" refers to unavoidable disaster conditions consisting of:
a. natural disasters; b. non-natural disasters; and/or
c. social disasters,
which are approved by officials of the competent local government agency and/or can be verified in truthfulness by the Financial Services Authority.
Paragraph (2)
Is sufficiently clear.
Paragraph (3)
Is sufficiently clear.
Paragraph (4)
Is sufficiently clear.
Paragraph (5)
Is sufficiently clear.

Article 129
Is sufficiently clear.

Article 130
Is sufficiently clear.

Article 131
Is sufficiently clear.

Article 132
Paragraph (1)
Banking synergy includes among others the utilization of infrastructure such as Office Networks, TPE, archiving, etc., utilization of technology such as data centers, disaster recovery centers, information security, cyber resilience, applications, etc., banking services for customers including customer service centers (call centers), support related to human resources, or other activities as long as they do not conflict with applicable legislation. Paragraph (2) Is sufficiently clear.

Article 133
Paragraph (1)
Cooperation between both parties still pays attention to the principle of prudence and aims to increase efficiency and provide added value on a consolidated basis.
Paragraph (2)
Letter a
Is sufficiently clear.
Letter b
Is sufficiently clear.
Letter c
The duration of the cooperation agreement states the start and end periods of cooperation. Each party may extend the cooperation duration by conducting an amendment to the cooperation agreement.
Number 1
Confidentiality and information security (nondisclosure agreement), including confidentiality and information security for customer data protection purposes, namely actions that provide protection, maintain the confidentiality and security of information of both parties carrying out synergy, and only use such information in accordance with the interests and purposes agreed upon by customers, unless otherwise determined by applicable legislation. Obligations to maintain customer confidentiality and information security include among others in accordance with applicable legislation regarding bank secrecy in the Banking Law, the Sharia Banking Law, and the Financial Services Authority Regulation regarding consumer protection in the financial services sector. Number 2 Is sufficiently clear. Number 3 Risk mitigation is necessary as an effort to ensure operational continuity in the event of the termination of the cooperation agreement, which can be caused by various conditions including among others increased risk exposure due to changes in supervision status (becoming intensive or special supervision), takeover, involving at least one of the parties. Number 4 Handling customer complaints in accordance with the Financial Services Authority Regulation regarding consumer complaint services in the financial services sector. Number 5 Is sufficiently clear. Number 6 Documentation includes among others transaction evidence, including for audit purposes and interests. Paragraph (3) Is sufficiently clear. Paragraph (4) Is sufficiently clear. Paragraph (5) Is sufficiently clear. Paragraph (6) Is sufficiently clear. Paragraph (7) Is sufficiently clear.

Article 134
Paragraph (1)
The DPS Opinion aims to ensure that the implementation of banking synergy does not conflict with Sharia Principles.
Paragraph (2)
Is sufficiently clear.
Paragraph (3)
Changes to the cooperation agreement refer to changes or expansions of the scope type as in the initial cooperation agreement.
As an example, previous cooperation support related to customer service centers is changed to marketing services via electronic means (telemarketing).
Paragraph (4)
Is sufficiently clear.

Article 135
Is sufficiently clear.

Article 136
Paragraph (1)
Applicable legislation includes among others the Limited Liability Company Law.
Paragraph (2)
Is sufficiently clear.
Paragraph (3)
Is sufficiently clear.
Paragraph (4)
Is sufficiently clear.

Article 137
Is sufficiently clear.

Article 138
Is sufficiently clear.

Article 139
Is sufficiently clear.

Article 140
Is sufficiently clear.

Article 141
Is sufficiently clear.

Article 142
Is sufficiently clear.

Article 143
Paragraph (1)
Is sufficiently clear.
Paragraph (2)
The determination of a higher escrow fund amount is based on the results of the Financial Services Authority's analysis of the projected cash inflow of BPRS assets with total liabilities, to ensure the settlement of obligations by BPRS.

Article 144
Is sufficiently clear.

Article 145
Is sufficiently clear.

Article 146
Is sufficiently clear.

Article 147
Paragraph (1)
Letter a
Is sufficiently clear.
Letter b
Is sufficiently clear.
Letter c
Included in the settlement of all BPRS obligations is among others the settlement of obligations to customer creditors, payment of unpaid salaries, payment of office costs, payment of unpaid taxes, and other relevant costs. Letter d The term "public accounting firm" refers to a public accounting firm registered with the Financial Services Authority in accordance with the Financial Services Authority Regulation regarding the use of public accounting services and public accounting firms in financial service activities. Paragraph (2) Is sufficiently clear.

Article 148
Is sufficiently clear.

Article 149
Is sufficiently clear.

Article 150
Is sufficiently clear.

Article 151
Is sufficiently clear.

Article 152
The term "through information technology media" includes among others through teleconference media, video conferencing, or other electronic media facilities.

Article 153
Is sufficiently clear.

Article 154
Is sufficiently clear.

Article 155
Is sufficiently clear.

Article 156
Is sufficiently clear.

SUPPLEMENT TO THE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 23/OJK

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 26 OF 2022
CONCERNING
SHARIA RURAL FINANCING BANKS

Part A
LIST OF ESTABLISHMENT REGIONS FOR SHARIA RURAL FINANCING BANKS (BPRS) BASED ON ZONES

No.	Province	Zone	Minimum Capital (in billions)
1	DKI Jakarta	1	IDR 75
2	Banten	1	IDR 75
3	West Java	1	IDR 75
4	Central Java	1	IDR 75
5	D.I. Yogyakarta	1	IDR 75
6	East Java	1	IDR 75
7	Bali	1	IDR 75
8	Aceh	2	IDR 35
9	North Sumatra	2	IDR 35
10	West Sumatra	2	IDR 35
11	Riau	2	IDR 35
12	Jambi	2	IDR 35
13	Bengkulu	2	IDR 35
14	Riau Islands	2	IDR 35
15	South Sumatra	2	IDR 35
16	Bangka Belitung	2	IDR 35
17	Lampung	2	IDR 35
18	West Kalimantan	2	IDR 35
19	Central Kalimantan	2	IDR 35
20	South Kalimantan	2	IDR 35
21	North Kalimantan	2	IDR 35
22	East Kalimantan	2	IDR 35
23	Central Sulawesi	2	IDR 35
24	South Sulawesi	2	IDR 35
25	West Nusa Tenggara	2	IDR 35
26	East Nusa Tenggara	3	IDR 15
27	North Sulawesi	3	IDR 15
28	Gorontalo	3	IDR 15
29	West Sulawesi	3	IDR 15
30	Southeast Sulawesi	3	IDR 15
31	Maluku	3	IDR 15
32	North Maluku	3	IDR 15
33	Papua	3	IDR 15
34	West Papua	3	IDR 15
35	Central Papua	3	IDR 15
36	Highland Papua	3	IDR 15
37	South Papua	3	IDR 15

Part B
I. DOCUMENT REQUIREMENTS FOR APPLICATION FOR PRINCIPLE APPROVAL FOR BPRS ESTABLISHMENT

This section covers the requirements needed to submit a request to obtain principle approval for the establishment of a BPRS, submitted by at least 1 (one) prospective Principal Shareholder (PSP).
The document requirements for the principle approval application include:
a. draft articles of association of the legal entity, including draft bylaws, which must contain at least:
1. name and domicile;
2. business activities as a Bank;
3. capital;
4. ownership;
5. authority, responsibility, and term of office of the Board of Directors, Board of Commissioners, and Sharia Supervisory Board (DPS); and
6. The Board of Directors, Board of Commissioners, and DPS must obtain approval from OJK before carrying out actions, duties, and functions;
b. ownership data:
1. for prospective PSPs, accompanied by requirement documents in accordance with Financial Services Authority Regulations regarding the assessment of competence and propriety for principal parties of financial service institutions;
2. for prospective shareholders, accompanied by a curriculum vitae, in the format as set out in Subsection B.1.;
c. list of prospective members of the Board of Directors and members of the Board of Commissioners accompanied by requirement documents as regulated in Financial Services Authority Regulations regarding the assessment of competence and propriety for principal parties of financial service institutions.
d. list of prospective DPS members accompanied by supporting documents; e. organizational structure plan, human resource composition, description of duties and positions, including among others the organizational chart, horizontal and vertical lines of responsibility, and the lowest rank up to Executive Officials, prepared in accordance with among others Financial Services Authority Regulations regarding the application of corporate governance for Sharia rural financing banks, risk management application for Sharia rural financing banks, and standards for the implementation of information technology for rural credit banks and Sharia rural financing banks; f. analysis of potential and feasibility, in accordance with guidelines as referred to in Subsection B.2.; g. plan for work systems and procedures and plan for electronic systems and information technology; h. BPRS business plan;
i. proof of full capital deposit in the form of a photocopy of a deposit certificate accompanied by a statement for the establishment of the relevant BPRS and its withdrawal can only be carried out after obtaining approval from the Financial Services Authority;
j. statement letter from prospective shareholders, that the source of capital deposit funds:
1. does not come from loans or financing facilities in any form from banks and/or other parties; and/or
2. does not come from and for money laundering and/or terrorism financing or proliferation of weapons of mass destruction;
k. list and financial statements of the BPRS and/or other financial service institutions owned by the prospective BPRS PSP; and
l. proof of payment of licensing fees for the establishment of BPRS to the Financial Services Authority.

In the event that the regional government is a prospective shareholder of the BPRS, the statement letter from the prospective shareholder as referred to in letter i can be replaced with a regional head decision containing a statement that the source of capital deposit funds has been budgeted in the Regional Revenue and Expenditure Budget (APBD) and has been approved by the Regional House of Representatives (DPRD).

The financial statements as referred to in letter k are for the last 1 (one) year period prior to the submission of the application, which have been audited by a public accountant and/or have been submitted to the supervisor. The list and financial statements of the BPRS and/or other financial service institutions owned by the prospective PSP showing that the BPRS and/or other financial service institutions owned by the prospective PSP:

are not in a loss condition, i.e., not in a condition reflecting an increasing trend of losses experienced by the company, both in the current year and cumulatively in previous years, caused by structural problems or the company's main business activities; and
have healthy capital, liquidity, and profitability ratios referring to applicable assessment standards for each respective financial service institution.

II. CHECKLIST OF DOCUMENTS FOR APPLICATION FOR PRINCIPLE APPROVAL FOR BPRS ESTABLISHMENT

No.	Description	Complete	Not Complete
1.	Draft articles of association of the legal entity, including draft bylaws, meeting bylaw requirements in accordance with statutory regulations and containing a statement of effectiveness after obtaining approval from the Financial Services Authority for matters:	☐	☐
	a. increase in paid-up capital;	☐	☐
	b. change in share ownership resulting in:	☐	☐
	1) replacement of shareholders;	☐	☐
	2) addition of shareholders;	☐	☐
	and/or	☐	☐
	3) change of BPRS PSP.	☐	☐
	c. appointment of members of the Board of Directors, members of the Board of Commissioners, and members of the Sharia Supervisory Board;	☐	☐
Ownership Data
2.	Ownership data in the form of a list of prospective shareholders along with details of each share ownership for BPRS, attached with documents as follows:	☐	☐
	a. in the event the prospective PSP, whether an individual or legal entity, refers to the appendix in accordance with Financial Services Authority Circular Letter regarding the assessment of competence and propriety for controlling prospective shareholders, prospective directors, and prospective commissioners of banks;	☐	☐
	b. in the event the prospective non-PSP shareholder is an individual:	☐	☐
	1) documents stating the identity of each prospective non-PSP shareholder consisting of:	☐	☐
	a) photocopy of identification, consisting of a valid Identity Card (KTP);	☐	☐
	b) curriculum vitae;	☐	☐
	c) recent color passport photo size 4x6 cm; and	☐	☐
	d) photocopy of Taxpayer Identification Number (NPWP).	☐	☐
	2) stamped statement letter from each prospective non-PSP shareholder, that the source of funds used:	☐	☐
	a) does not come from loans or financing facilities in any form from banks and/or other parties; and/or	☐	☐
	b) does not come from and for money laundering and/or terrorism financing or proliferation of weapons of mass destruction.	☐	☐
	3) stamped statement letter from each prospective shareholder at least stating that the person concerned:	☐	☐
	a) is committed to complying with statutory regulations, particularly in the banking and Sharia banking fields and supporting Financial Services Authority policies;	☐	☐
	b) is committed to taking necessary measures in the event BPRS faces capital or liquidity difficulties in carrying out its business activities;	☐	☐
	c) has never been sentenced for proven criminal offenses that have been decided by a court and have obtained permanent legal force consisting of:	☐	☐
	i. criminal offenses in the financial service sector whose sentence has been served within the last 20 (twenty) years prior to submission;	☐	☐
	ii. criminal offenses, i.e., criminal offenses listed in the Criminal Code (KUHP) and/or similar KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentence has been served within the last 10 (ten) years prior to submission; and/or	☐	☐
	iii. other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, in the tax field, forestry field, environmental field, marine field, and fisheries, whose sentence has been served within the last 20 (twenty) years prior to submission;	☐	☐
	d) is not prohibited from becoming a Principal Party, which among others is not listed in the fail list, suspected terrorist list and terrorist organization list, and proliferation of weapons of mass destruction financing;	☐	☐
	e) has never been declared bankrupt and/or has never been a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was declared guilty causing a company to be declared bankrupt based on court decisions within the last 5 (five) years prior to submission;	☐	☐
	f) does not have non-performing loans and/or financing;	☐	☐
	g) does not transfer BPRS share ownership within a certain period (minimum 5 (five) years), except based on Financial Services Authority decisions;	☐	☐
	h) is willing to strengthen capital, in the event deemed necessary by the Financial Services Authority;	☐	☐
	i) is not undergoing legal processes, is not undergoing competence and propriety assessment at a financial service institution (LJK) and/or is not in the process of re-assessment due to indications of integrity, financial feasibility/reputation, and/or competence problems at an LJK;	☐	☐
	j) is committed to the healthy development of BPRS;	☐	☐
	k) will not commit and/or repeat acts and/or actions that cause the person concerned to be included as a party prohibited from becoming a Principal Party (for prospective parties who were previously prohibited as Principal Parties);	☐	☐
	l) will not carry out certain activities that are estimated to worsen the financial and non-financial conditions of BPRS;	☐	☐
	m) will not accept the provision of funds and/or any facilities that are not reasonable from BPRS;	☐	☐
	n) implements directions and strategies for the healthy development of BPRS, which considers financing for Productive Micro and Small Enterprises (UMK) for the local community; and	☐	☐
	o) is willing to accept the results of the competence and propriety assessment and will not file claims or lawsuits in any form against the results of the competence and propriety assessment established by the Financial Services Authority.	☐	☐
	4) document of the plan for directions and strategies for BPRS development for at least 3 (three) years since BPRS operates as a guideline for the healthy development of BPRS, which also includes regional economic development considering financing for Productive Micro and Small Enterprises (UMK) by considering regional potential and is intended for the local community.	☐	☐
	c. in the event the prospective non-PSP shareholder is a legal entity:	☐	☐
	1) copy of the articles of association of the legal entity including bylaws and their amendments that have received approval from the competent authority, except for regional governments;	☐	☐
	2) documents stating the identity of all board of directors members and board of commissioners members for Limited Liability Companies (Perseroan Terbatas) or management composition for legal entities other than Limited Liability Companies consisting of:	☐	☐
	a) photocopy of identification, consisting of a valid Identity Card (KTP);	☐	☐
	b) curriculum vitae;	☐	☐
	c) recent color passport photo size 4x6 cm;	☐	☐
	d) photocopy of Taxpayer Identification Number (NPWP) of the legal entity; and	☐	☐
	e) photocopy of Taxpayer Identification Number (NPWP) of each board of directors member and board of commissioners member for Limited Liability Companies or equivalent positions for other legal entities.	☐	☐
	In the event the prospective shareholder is a regional government, the document stating identity is a document from the regional head or the party appointed to represent the regional government;	☐	☐
	3) ownership data in the form of a list of shareholders along with details of each share ownership;	☐	☐
	4) financial reports including balance sheet, income statement, cash flow statement, statement of changes in equity, and notes to financial statements, except for regional governments;	☐	☐
	5) document of the plan for directions and strategies for BPRS development for at least 3 (three) years since BPRS operates as a guideline for the healthy development of BPRS, which also includes regional economic development considering financing for Productive Micro and Small Enterprises (UMK) by considering regional potential and is intended for the local community;	☐	☐
	6) stamped statement letter from all board of directors members or board of commissioners members or management of the relevant legal entity that the funds used:	☐	☐
	a) do not come from loans or financing facilities in any form from banks and/or other parties; and/or	☐	☐
	b) do not come from and for money laundering and/or terrorism financing or proliferation of weapons of mass destruction;	☐	☐
	In the event the prospective BPRS shareholder is a regional government, the statement letter is replaced with a Regional Head Decision stating that the source of capital deposit funds has been budgeted in the Regional Revenue and Expenditure Budget (APBD) and has been approved by the Regional House of Representatives (DPRD);	☐	☐
	7) stamped statement letter from the legal entity signed by the authorized official representing in accordance with the legal entity's bylaws, stating willingness to increase capital, if deemed necessary by the Financial Services Authority's assessment;	☐	☐
	8) stamped statement letter from the legal entity signed by all board of directors members and board of commissioners members or management, containing at least:	☐	☐
	a) commitment to comply with statutory regulations, particularly in the banking and Sharia banking fields and supporting Financial Services Authority policies;	☐	☐
	b) commitment to take necessary measures in the event BPRS faces capital or liquidity difficulties in carrying out its business activities;	☐	☐
	c) does not have non-performing loans and/or financing;	☐	☐
	d) does not transfer BPRS share ownership within a certain period (minimum 5 (five) years), except based on Financial Services Authority decisions;	☐	☐
	e) is willing to strengthen capital, in the event deemed necessary by the Financial Services Authority;	☐	☐
	f) is not undergoing legal processes and/or competence and propriety assessment at an LJK.	☐	☐
	9) stamped statement letter from each member of the Board of Directors and each member of the Board of Commissioners of the legal entity, at least stating that the person concerned:	☐	☐
	a) is committed to complying with statutory regulations, particularly in the banking and Sharia banking fields and supporting Financial Services Authority policies;	☐	☐
	b) has never been sentenced for proven criminal offenses that have been decided by a court and have obtained permanent legal force consisting of:	☐	☐
	i. criminal offenses in the financial service sector whose sentence has been served within the last 20 (twenty) years prior to submission;	☐	☐
	ii. criminal offenses, i.e., criminal offenses listed in the Criminal Code (KUHP) and/or similar KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentence has been served within the last 10 (ten) years prior to submission; and/or	☐	☐
	iii. other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, in the tax field, forestry field, environmental field, marine field, and fisheries, whose sentence has been served within the last 20 (twenty) years prior to submission;	☐	☐
	c) is not prohibited from becoming a Principal Party, which among others is listed in the fail list, suspected terrorist list and terrorist organization list, and proliferation of weapons of mass destruction financing;	☐	☐
	d) has never been declared bankrupt and/or has never been a shareholder, member of the Board of Directors or member of the Board of Commissioners who was declared guilty causing a company to be declared bankrupt based on court decisions within the last 5 (five) years prior to submission;	☐	☐
	e) does not have non-performing loans and/or financing;	☐	☐
	f) is not undergoing legal processes;	☐	☐
	10) stamped statement letter from the legal entity signed by all board of directors members and board of commissioners members or management at least stating that the person concerned:	☐	☐
	a) will not commit and/or repeat acts and/or actions that cause the person concerned to be included as a party prohibited from becoming a Principal Party (for prospective parties who were previously prohibited as Principal Parties);	☐	☐
	b) will not carry out certain activities that are estimated to worsen the financial and non-financial conditions of BPRS; and	☐	☐
	c) does not accept the provision of funds and/or any facilities that are not reasonable from BPRS;	☐	☐
	11) entire business group structure related to BPRS and the controlling legal entity of BPRS up to the Ultimate Controlling Shareholder (PSPT), except for regional governments;	☐	☐
	12) stamped statement letter from the management of the legal entity stating that the person concerned has submitted correct and complete information regarding the BPRS group structure up to the last owner, in the event the legal entity is a prospective BPRS PSP;	☐	☐
	13) stamped statement letter from the prospective PSP regarding willingness to provide data and information related to the business group structure to the Financial Services Authority for supervision purposes;	☐	☐
Ultimate Controlling Shareholder
14) Questionnaire for prospective Ultimate Controlling Shareholders (PSPT) of BPRS, for both prospective individuals and prospective legal entities, in accordance with Financial Services Authority Circular Letter regarding the assessment of competence and propriety for controlling prospective shareholders, prospective directors, and prospective commissioners of banks.	☐	☐
15) stamped statement letter from PSPT, namely:	☐	☐
	a) statement letter as referred to in item 2.b.3), in the event PSPT is an individual;	☐	☐
	b) statement letter from the legal entity signed by all board of directors members and board of commissioners members or management as in item 2.c.7), in the event PSPT established by the Financial Services Authority is a legal entity other than a regional government;	☐	☐
16) written commitment from PSPT stating willingness to implement directions and strategies for the healthy development of BPRS, which considers financing for Productive Micro and Small Enterprises (UMK) for the local community;	☐	☐
Board of Directors Members, Board of Commissioners Members, and Sharia Supervisory Board Members
3.	Prospective members of the Board of Directors, prospective members of the Board of Commissioners, and prospective DPS members:	☐	☐
	a. List of composition of Board of Directors members, Board of Commissioners members, and prospective DPS members;	☐	☐
	b. Requirement documents for Directors and Board of Commissioners members in accordance with Financial Services Authority Circular Letter regarding the assessment of competence and propriety for controlling prospective shareholders, prospective directors, and prospective commissioners of banks.	☐	☐
	c. Documents for DPS	☐	☐
	1) latest passport photo size 4 x 6 cm;	☐	☐
	2) photocopy of identification consisting of KTP;	☐	☐
	3) curriculum vitae;	☐	☐
	4) stamped statement letter from prospective DPS members stating that the person concerned:	☐	☐
	a) is committed to complying with statutory regulations, particularly in the banking and Sharia banking fields and willing to support OJK policies;	☐	☐
	b) has a high commitment to the healthy operational development of BPRS. The meaning of "having commitment" includes among others willingness to provide sufficient time to BPRS in order to carry out duties effectively	☐	☐
	c) has never been sentenced for proven criminal offenses consisting of;	☐	☐
	i. criminal offenses in the Financial Service Sector whose sentence has been served within the last 20 (twenty) years prior to nomination;	☐	☐
	ii. criminal offenses, i.e., criminal offenses listed in the Criminal Code (KUHP) and/or similar KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentence has been served within the last 10 (ten) years prior to nomination;	☐	☐
	and/or	☐	☐
	iii. other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, in the tax field, forestry field, environmental field, marine field, and fisheries, whose sentence has been served within the last 20 (twenty) years prior to nomination	☐	☐
	d) is not prohibited from becoming a Principal Party, which among others is not listed in the Fail List (DTL);	☐	☐
	e) does not have non-performing loans and/or financing;	☐	☐
	f) has never been declared bankrupt and/or has never been a shareholder, controller, member of the Board of Directors or member of the Board of Commissioners who was declared guilty causing a company to be declared bankrupt within the last 5 (five) years prior to nomination;	☐	☐
	5) statement letter from prospective DPS members that the person concerned does not violate dual position regulations, namely DPS members do not hold positions as DPS members in more than 4 (four) other Sharia financial institutions	☐	☐
	6) certificate or certificate from educational and training institutions and/or the National Sharia Council-Majelis Ulama Indonesia regarding education and/or training in Sharia muamalah and in banking and/or finance in general that the prospective DPS member has attended;	☐	☐
	7) recommendation letter from the National Sharia Council-Majelis Ulama Indonesia for prospective DPS members who have not previously had the aforementioned recommendation letter;	☐	☐
	8) is not a controller, member of the board of commissioners, or member of the board of directors of a legal entity that has non-performing loans and/or financing;	☐	☐
	9) is not undergoing legal processes due to indications of integrity, financial feasibility/reputation and/or competence problems at an LJK;	☐	☐
	10) is willing to accept the results of the interview and will not file claims or lawsuits in any form against the assessment results established by the Financial Services Authority.	☐	☐
Organizational Structure
4.	Plan for organizational structure, human resource composition, and description of duties and positions;	☐	☐
5.	Plan for standard operating procedures including complete and comprehensive manual books and plan for electronic systems and information technology;	☐	☐
Feasibility Study
6.	Analysis of potential and feasibility for BPRS establishment;	☐	☐

Paid-Up Capital

Proof of full payment of the required paid-up capital according to the zone, in the form of a photocopy of a deposit certificate at a Sharia Commercial Bank (BUS) and/or Sharia Rural Bank (UUS) in Indonesia or another BPRS under the name of “Commissioners of the Financial Services Authority q.q. (name of prospective shareholder and/or PSP of the BPRS)” with a note for the establishment of the relevant BPRS, and its withdrawal can only be done after obtaining written approval from the Financial Services Authority, accompanied by an explanation regarding the source of funds used for the paid-up capital and other supporting documents, including:

a. account mutation for the last 6 (six) months, in the event that the capital deposit comes from savings or checking accounts; b. proof of withdrawal of the deposit certificate, in the event that the capital deposit comes from deposits;
c. proof of sales transactions, including copies of deeds or sales agreements, photocopies of receipts, in the event that the capital deposit comes from the proceeds of asset sales, proof of tax payment for the sales transaction, and proof of payment from the asset buyer (including transfer slips or account mutations holding the proceeds of asset sales);
d. copy of the gift deed, in the event that the capital deposit comes from gifts; and/or e. minutes of the General Meeting of Shareholders approving the distribution of dividends, balance sheets before and after the distribution of dividends, in the event that the capital deposit comes from the distribution of dividends on the prospective shareholder's share ownership in another company.

Other LJKs Owned by Prospective PSP

List and financial reports of the BPRS and/or other LJKs owned by the prospective PSP showing that the BPRS and/or other LJKs owned by the prospective PSP:

a. are not in a state of loss; and b. have healthy capital, liquidity, and profitability ratios referring to the applicable assessment standards for each LJK.

Licensing Costs

Proof of full payment of the licensing costs for the establishment of the BPRS.

We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with the Financial Services Authority Regulation Number ... Year ... concerning Sharia Rural Financing Banks to be submitted to the Financial Services Authority in the context of applying for the principle approval for the establishment of a BPRS.

(City), (date-month-year)
(Signature above stamp is sufficient)
(Full name of one of the prospective PSPs)

Subsection B.1.
LIFE HISTORY LIST
(Prospective Shareholder)

I. PERSONAL DATA

Full Name : …………………………………………………………
Nickname : …………………………………………………………
Place, Date of Birth : …………………………………………………………
Religion : …………………………………………………………
Home Address/Domicile : …………………………………………………………
Home/Domicile Phone ……… Postal Code ………
Office Address :
Office Phone …………… Postal Code ………………
Parents' Names : …………………………………………………………
Number of Siblings (Full/Adopted) : …………………………………………………………
Marital Status : …………………………………………………………
Spouse's Name : …………………………………………………………
Full Name of Family Members :
a. Biological/Step/Adoptive Parents:
…………………………………………………………………………………… b. Full/Step/Adoptive Siblings along with their spouses:
……………………………………………………………………………………
c. Biological/Step/Adoptive Children:
…………………………………………………………………………………… d. Biological/Step/Adoptive Grandparents:
…………………………………………………………………………………… e. Biological/Step/Adoptive Grandchildren:
…………………………………………………………………………………… f. Spouse:
…………………………………………………………………………………… g. Parents-in-law:
…………………………………………………………………………………… h. In-laws:
……………………………………………………………………………………
i. Spouse of Biological/Step/Adoptive Children:
…………………………………………………………………………………… j. Spouse's Grandparents:
…………………………………………………………………………………… k. Spouse of Biological/Step/Adoptive Grandchildren:
……………………………………………………………………………………
l. Spouse's Full/Step/Adoptive Siblings along with their spouses:
……………………………………………………………………………………

II. EDUCATION HISTORY
Level Year Institution Name Faculty/Major
Graduated/Degree Obtained
Primary School
First Secondary School
General Secondary School
Academy
Higher Education
Postgraduate

III. TRAINING/COURSES ATTENDED
Name of Training/Course *) Year Organizer Location *) Including certification training

IV. WORK HISTORY
Year Company Position Responsibility Achievement Total Assets/Turnover

V. SPECIFIC EXPERIENCE
(Describe specific work experience that can illustrate your ability to handle difficult situations).

This life history list is compiled truthfully.
(City), (date-month-year)
(Signature above stamp is sufficient)
(Full name of prospective shareholder)

Subsection B.2.
GUIDELINES FOR PREPARING POTENTIAL AND FEASIBILITY ANALYSIS

I. Introduction
Potential and feasibility analysis is a set of structured activities aimed at conducting an in-depth assessment of the potential and feasibility of a business by considering the sustainability of the business in the long term. Therefore, the preparation of a feasibility study must be based on the assessment of various aspects and grounded in information that reflects current conditions, especially economic conditions including regional potential, competition levels, and challenges to be faced in running the business. The aspects that must be analyzed in the preparation of a feasibility study consist of 2 (two) elements, as follows:

Potential Aspect, which includes several external sub-aspects including:
a. Economic Potential;
Analysis of the economic potential sub-aspect includes, among others, Provincial Gross Regional Product (PDRB) at constant prices, Provincial Minimum Wage (UMP), inflation rate, potential for Micro, Small, and Medium Enterprises (MSMEs), number of markets, and other related variables. b. Financial Conditions and Competition; Analysis of the financial conditions and competition sub-aspect is based, among others, on the number of BPRs and BPRSs, number of general banks, average interest rate on BPRS savings, average interest rate on BPRS fixed-term deposits of 3 (three) months, average annual interest rate on BPRS financing, and BPRS NPF ratio in the designated operational area.
c. Demographic Conditions;
Analysis of the demographic sub-aspect aims to view the potential of the local community, which is reflected, among others, in the population, working-age level, and consumption and expenditure levels, which is expected to allow the BPRS to know the economic conditions in that area for the last 5 (five) years and the business prospects reflected in projections of at least 3 (three) years ahead.
Feasibility Aspect, which includes several internal sub-aspects including:
a. Business Strategy;
This sub-aspect contains a series of activities designed by the prospective shareholder or BPRS to achieve goals both in the short and medium term according to the target market conditions that are the focus of the BPRS business. Analysis of the business strategy sub-aspect must at least cover the following:
1. location, namely an explanation regarding the reasons for choosing the BPRS office location;
2. products, namely a description of the types and advantages of fund collection (savings) and financing disbursement products;
3. promotion, namely the marketing program plan to introduce savings and financing products;
4. approach to the target market, namely efforts made to bring services closer to the target market, and social approaches conducted to attract the target market's interest in BPRS products;
5. services, namely service procedures for financing customers and depositors;
6. business cooperation plans with third parties, both individually and collectively with a business entity, to ensure the acquisition of prospective customers or debtors as a captive market.
  b. Organization and Infrastructure;
  This sub-aspect essentially supports the implementation of the previously designed business strategy, with the aim of ensuring that the strategy can be run optimally. The main strength in running operational business lies in human resource (HR) policies, organizational effectiveness, and the availability of standard operating procedures that ensure the establishment of service standards, governance readiness, and equipment or infrastructure that are prerequisites for supporting service activities. Analysis of the organization and infrastructure sub-aspect must at least cover the following:
7. HR and organizational structure, namely the number of HR and job positions in the organizational structure, HR competence, demonstrated by education and experience, recruitment programs, HR training and development, remuneration systems, and employee performance assessments;
8. infrastructure plan, namely the ownership status and feasibility of the office, availability of technology and information systems, and other supporting operational facilities; and
9. governance plan, namely the availability of work procedures, work implementation guidelines, employee job descriptions, delegation of authority, and internal control.
  Organization preparation is carried out with reference to, among others, Financial Services Authority Regulations regarding the application of governance for Sharia rural financing banks.
  c. Finance and Capital
  This sub-aspect is one of the keys to the success of the BPRS in running its business, as it reflects the financial performance targets that must be achieved. When preparing, the prospective PSP or BPRS needs to consider the feasibility principle in the calculation and determination of interest rates for savings and financing, so as to attract the target market amidst fierce competition. Likewise, it is necessary to apply realistic financial performance targets, so that BPRS management can run the bank business in a comfortable situation. The Finance Aspect must at least include financial feasibility and financial performance accompanied by projections of financial position reports (balance sheets), income statements, main financial ratios, and cash flows monthly for 5 (five) years starting from when the BPRS conducts operational activities. Analysis of the Finance sub-aspect must at least cover the following:
10. financial feasibility; and
11. financial performance.
  Specifically for the establishment of a BPRS or the relocation of the BPRS headquarters address to a higher zone that requires the addition of paid-up capital, this sub-aspect must also be completed with a capital analysis containing calculations regarding the adequacy of paid-up capital to start business and meet business strategies, organizational completeness with HR in sufficient quantity and quality, availability of supporting infrastructure including suitable office buildings, and achieving financial performance according to targets set with competitive interest rates. Prospective PSPs or BPRSs must prove the minimum capital requirement realistically, supported by justifiable calculation assumptions. The minimum paid-up capital amount set must be able to be broken down into the form of capital allocation against each pre-operational need and other needs supporting BPRS business activities and services. Analysis of the capital sub-aspect must at least cover the following:
12. amount of paid-up capital;
13. calculation of paid-up capital needs; and
14. allocation of paid-up capital for working capital needs;
  which is expected to allow the BPRS to set the right business strategy from the beginning of the BPRS establishment.

II. Format for Preparing Potential and Feasibility Analysis
The feasibility study document submitted by prospective investors or BPRSs must at least include the format for potential and feasibility analysis, as follows:

Foreword
BPRS Identity
Table of Contents
Chapter I Introduction
A. Background of Establishment/Relocation of BPRS Headquarters Address B. BPRS Vision and Mission
C. Objectives of Establishment/Relocation of BPRS Headquarters Address
Chapter II BPRS Establishment Aspects
A. Potential Aspect

Economic Potential
Financial Potential
Demographic Potential
B. Feasibility Aspect
Business Strategy
Organization and Infrastructure
Finance and Capital *)
Chapter III SWOT Analysis
A. Strengths possessed
B. Weaknesses and Constraints faced
C. Business Opportunities
D. Threats or Competition faced
E. SWOT Analysis Conclusion
Chapter IV Conclusions and Suggestions
Appendices

Note:
*) Capital calculation analysis is only intended for the establishment of new BPRSs or the relocation of BPRS headquarters addresses to a higher zone that requires the addition of paid-up capital.

III. Components of Potential and Feasibility Analysis

Explanation of Components and Data Requirements
In relation to fulfilling the completeness of supporting data according to aspects, sub-aspects, and components of the preparation of potential and feasibility analysis, this section will explain the data that prospective PSPs or BPRSs must complete according to the provided format. The purpose is to standardize the writing of potential and feasibility analysis documents, and to facilitate the evaluation team in assessing the feasibility study analysis submitted by prospective PSPs or BPRSs.
Market Research Procedures
Market surveys are a series of structured activities aimed at obtaining a picture of the actual situation of the area, specifically regarding market conditions that will be used as the target for disbursement or fund collection for prospective BPRSs. Main information to be collected through this survey includes:
a. public interest in obtaining financial services from BPRSs; b. competition level of LJKs in the target market;
c. potential for BPRS savings collection;
d. potential for BPRS deposit collection; e. potential for BPRS financing disbursement; f. mapping of locations or existence of target markets for fund collection; and g. mapping of locations or existence of target markets for financing disbursement. To ensure that collected data has validity and reliability, in conducting the survey, it is necessary to observe the norms commonly used in survey implementation. In its implementation, market surveys can use the assistance of competent consultants, so that the results can be scientifically justified. In the assessment of potential and feasibility analysis, it is not ruled out that the Financial Services Authority's assessment team will conduct verification of the methodology or results obtained in the implementation of market research.
Format for Data Components of Feasibility Study Preparation
For the purpose of verifying some of the data used in the preparation of potential and feasibility analysis, prospective PSPs are expected to compile some of this data specifically according to the format. In the document, this data is stated in the appendix section, and besides being submitted in printed copy form, it is also submitted in electronic copy form in Microsoft Excel application.

Table Format for Data Component Preparation

Component	Potential Aspect	Data for Last 5 Years*)	Projection 3 Years Ahead
a. Economy, including:
1) PDRB at constant prices)
2) Number of UMPs)
3) Inflation Rate
4) Number of MSMEs
5) Number of Markets
b. Finance, such as:
1) Number of BPRSs;
2) Number of BPRs;
3) Number of General Banks (BUS and BUKs)
4) Number of other LJKs assessed as BPRS competitors
5) Potential BPRS Savings)
6) Potential General Bank Savings)
7) Potential BPRS Deposits)
8) Potential General Bank Deposits)
9) Potential BPRS Financing)
10) Potential General Bank Financing)
11) Average Interest Rate on BPRS Savings
12) Average Interest Rate on BPRS Deposits
13) Average Annual Interest Rate on BPRS Financing
14) BPRS NPF Rate
c. Demographic, including:
1) Population
2) Per Capita Income)
3) Number of Working Age

Note:
*) Data for the last five years before submitting the potential and feasibility analysis document.
) Written in units of millions of Rupiah.

Table of HR Quantity, Education Level, and Financial Experience

Division	Name	Education Level	Experience in Finance	Quantity

Table of Deposit Interest Rates, Financing, and Discount Factor

Information	Percentage
BPRS Interest Rates
Average Applicable Deposit Interest Rate
BPRS Financing Interest Rates
Average Applicable Financing Interest Rate
Discount Factor
LPS Interest Rate

Table of Breakdown of Paid-Up Capital Usage/Branch Office Opening Investment

No.	Type of Expenditure	Quantity	Unit	Unit Price/Cost	Total
Pre-operational Costs
1.	Feasibility Study
2.	Recruitment
3.	Training
4.	Licensing
Total I
Infrastructure
Information Technology
1.	Desktop PC
2.	Server + UPS
3.	Laptop
4.	Internet
5.	Scanner
6.	Printer
7.	Finance Software
8.	Telephone + Fax
Furniture
9.	Director or Commissioner's Desk
10.	Employee Desk
11.	Cashier Desk
12.	Buffet/Bookshelf
13.	Guest Chairs (Director's Room)
14.	Director or Commissioner's Chair
15.	Employee Chair
16.	Customer Chair
17.	Table + Meeting Room Chairs
18.	Archive Cabinet
Other Equipment
19.	Photocopier
20.	Safe Cabinet
21.	Filing Cabinet
22.	Shredder
23.	Air Conditioner
24.	Electrical Upgrade
25.	CCTV
26.	Telephone Installation Cost
27.	Two-Wheeled Motor Vehicle (two)
28.	Building Rent
29.	Building Renovation
30.	Services
Total II
Office Operations
1.	Stationery (ATK)
2.	Electricity/Water/Gas
3.	Telephone
4.	Others
Total III
Human Resources
1.	Commissioners/DPS
2.	Directors
3.	Branch Head/Deputy Branch Head*)
4.	Head of Section/Head of Division*)
5.	Operations
6.	Marketing
7.	Security
8.	Office Boy
Total IV
Promotion
1.	Banners
2.	Leaflets
3.	Events
4.	Others
Total V
Working Capital
Total VI
Total I to VI

Table of Financial Assumptions in Financial Calculations

No.	Description	Year 1	2	3	4	5
1.	Average annual financing return rate:
a.	Investment
b.	Working Capital
c.	Consumption
2.	Average annual DPK return rate:
a.	Savings
b.	Deposits
3.	Average annual return rate on placements in other banks per year:
a.	Checking Accounts
b.	Savings
c.	Sharia Deposit Certificates
d.	Deposits (3 months)
4.	Average financing term:
a.	Investment
b.	Working Capital
c.	Consumer
5.	Ratio of investment, working capital, and consumer financing
6.	Financing administrative costs
7.	Financing disbursement per year
8.	Financing repayment per year
9.	Financing development per year
10.	Savings receipts
11.	Deposit receipts
12.	Savings withdrawals
13.	Deposit withdrawals (3 months)
14.	BPRS Savings in other banks:
a.	Checking Accounts
b.	Savings
c.	Deposits
15.	Financing Quality (%):
a.	Good
b.	Special Attention
c.	Doubtful
d.	In Doubt
e.	Bad
16.	Non Performing Financing (NPF)
17.	Discount Factor (%)
18.	Paid-up Capital
19.	Average annual inflation rate
20.	Number of HR:
a.	Management
b.	DPS
c.	Employees
21.	Fixed Assets and Inventories
a.	Land and Buildings
b.	Furniture
c.	Computer Hardware and others
d.	Operating System Software
e.	Vault Door
f.	AC and Generators
g.	Two-Wheeled Motor Vehicles (two)
h.	Four-Wheeled Motor Vehicles (four)
22.	Building Rent (paid in advance for 5 years)
23.	Interior Costs
24.	Legal and Consultant Service Costs
25.	Others

Table of Estimated BPRS/Branch Office Investment Costs in the First Year

No.	Type of Investment	Quantity and Unit	Unit Price	Total Value	Economic Life	Depreciation per Year
1.	Buildings
2.	Computers
3.	Four-Wheeled Vehicles (four)
4.	Etc.
Total

Table of Estimated BPRS/Branch Office Operational Costs in the First Year

No.	Type of Operational Cost	Quantity and Unit	Unit Price	Total Value
1.	Labor Costs and HR Development
a.	Board of Directors and Board of Commissioners
b.	Sharia Supervisory Board
c.	Executive Officials
d.	Administration, Cashiers, etc.
e.	Security
f.	Office Boy
g.	Education and Training
h.	Employee Allowances/Incentives
i.	Etc.
2.	Supporting Operational Costs
a.	Electricity
b.	Water
c.	Telephone
d.	Etc.
3.	Marketing/Promotion Costs
4.	Etc.
Total

Table of BPRS/Branch Office Financial Feasibility Analysis

No.	Description	Year 1	2	3	4	5
A. Inflow (Cash In)
1.	Receipts of margin/interest/ujrah
a.	From financing provided to third parties
b.	From other banks:
1)	Checking Accounts
2)	Savings
3)	Etc.
2.	Other Income
a.	Etc.
3.	Cash Receipts from Assets
a.	Withdrawal of bank deposits
b.	Repayment of financing installments from third parties
c.	Sale of fixed assets and inventories
1)	Land and Buildings
2)	Etc.
4.	Cash Receipts from Liabilities
a.	Deposits of liabilities that can be paid immediately
b.	Savings deposits
c.	Fixed-term deposit deposits
d.	Loans from other banks
e.	Deposits of other miscellaneous liabilities
f.	Etc.
5.	Etc.
Total Inflow
B. Outflow (Cash Out)
1.	Investment Costs:
a.	Land and Buildings
b.	Furniture
c.	Computer Hardware and others
d.	Operating System Software
e.	Etc.
2.	Cash Expenditures
a.	Cash expenditures related to assets
1)	Bank deposit deposits
2)	Financing disbursement
3)	Other assets
4)	Etc.
b.	Cash expenditures related to liabilities
1)	Payment of immediate liabilities
2)	Savings withdrawals
3)	Fixed-term deposit withdrawals
4)	Installments of loans from other banks
5)	Installments of loans from other parties
6)	Payment of miscellaneous liabilities
7)	Etc.
Total Cash Expenditures
3.	Operational Costs
a.	Payment of Interest Returns:
1)	Savings Interest
2)	Deposit Interest
3)	Interest on loans from other banks
4)	Interest on loans from other parties
5)	Etc.
b.	Labor Costs
1)	Salaries, Wages, Honorariums
2)	Education and Training Costs
3)	Etc.
c.	Taxes (excluding Income Tax)
d.	Maintenance and Repair Costs
e.	Goods and Services
f.	Electricity
g.	Promotion
h.	Etc.
Total Operational Costs
4.	Non-Operational Costs
5.	Corporate Income Tax (25%)
Total Outflow
C. Net Benefit
D. Discount Factor (DR 8%)
E. Present Value Net Benefit
F. Cumulative Present Value Net Benefit
G. Present Value
(Profit minus Operational Costs)
H. Present Value of Investment
I. Net Present Value (NPV)
J. Internal Rate of Return (IRR)
K. Profitability Index (PI)
L. Discounted Payback Period

Based on the analysis results, prospective PSPs or BPRSs prepare projections of financial position reports (assets, liabilities, and equity) and income statements for a period of at least 5 (five) years ahead from the establishment of the BPRS, along with main financial ratios, such as ROA, BOPO, FDR, NPF, CAR, ATMR, and CR.

Part C
I. DOCUMENT REQUIREMENTS FOR APPLICATION FOR APPROVAL OF BPRS BUSINESS LICENSE
This section contains the requirements necessary to submit an application for approval of a business license for the establishment of a Sharia Micro Finance Bank (BPRS).
Document requirements for business license approval include:
a. A copy of the deed of establishment of the Limited Liability Company (PT) containing the articles of association and approval from the competent authority. b. Ownership data accompanied by requirement documents; if changes occur, accompanied by a copy of the deed of amendment and a registration letter from the competent authority.
c. A list of candidates for the Board of Directors, Board of Commissioners, and Sharia Supervisory Board (DPS) members, accompanied by requirement documents; if changes occur, accompanied by a copy of the deed of amendment and a registration letter from the competent authority.
d. Organizational structure, human resource composition, job descriptions, and standard operating procedures. The organizational structure and human resource composition include, among others, an organizational chart, horizontal and vertical lines of responsibility, and job levels from the lowest to the Executive Officer level. The organizational structure and human resource composition are arranged in accordance with Financial Services Authority Regulations regarding the application of corporate governance for Sharia Micro Finance Banks, Financial Services Authority Regulations regarding the application of risk management for Sharia Micro Finance Banks, and Financial Services Authority Regulations regarding standards for information technology implementation for Rural Banks and Sharia Micro Finance Banks. e. Proof of operational readiness, covering at least:
1. Electronic systems and information technology referring to Financial Services Authority regulations regarding standards for information technology implementation for Rural Banks and Sharia Micro Finance Banks.
2. A list of fixed assets and inventory in the form of tangible assets obtained in ready-to-use condition or built in advance, used in operational activities and not intended for sale. The list of "fixed assets and inventory" is accompanied by acquisition prices;
3. Proof of office building control, including proof of ownership or a lease agreement for the office building supported by proof of ownership from the lessor or a loan or usage agreement for the office building;
4. Photos and/or videos of the office building and room layout;
5. Examples of forms or documents to be used for BPRS operations; and
6. Tax Identification Number (NPWP); and
7. Business registration number serving as a company registration certificate, and
f. List and financial reports of the BPRS and/or other financial service institutions owned by the prospective PSP and/or PSP BPRS. The term "financial reports" refers to the most recent financial reports within the last 1 (one) year prior to the application submission, which have been audited by a public accountant and/or submitted to the supervisor. The list and financial reports of the BPRS and/or other financial service institutions owned by the prospective PSP BPRS must show that the BPRS and/or other financial service institutions owned by the prospective PSP BPRS:
1. are not in a loss condition, meaning they are not in a condition reflecting an increasing trend of losses incurred by the company, both in the current year and cumulatively in previous years, caused by structural problems or main business activities; and
2. have healthy capital, liquidity, and profitability ratios referring to the applicable assessment standards for each financial service institution.

II. CHECKLIST OF DOCUMENTS FOR APPLICATION FOR APPROVAL OF BPRS BUSINESS LICENSE
No. Description Completeness
Yes No Remarks

Copy of the deed of establishment of the legal entity,
containing the articles of association and approval from the competent authority;

□
Ownership Data

Ownership data in the form of a list of prospective shareholders along with details of each share ownership; in case of changes, attached with documents as follows:

□
a. in the case of prospective PSP, whether individual or legal entity, referring to the appendix according to the Financial Services Authority Circular regarding the assessment of competence and propriety for controlling shareholders, prospective directors, and prospective commissioners of banks;
□
b. in the case of prospective non-PSP shareholders being individuals:
1) documents stating the identity of each prospective non-PSP shareholder consisting of:
□
a) photocopy of identification, consisting of a valid Identity Card (KTP);
□
b) curriculum vitae; □ □ c) recent color passport photo size 4x6 cm; and □ □ d) photocopy of Tax Identification Number (NPWP).
□
2) a notarized statement letter from each prospective non-PSP shareholder,
□
that the source of funds used:
a) does not come from loans or financing facilities in any form from banks and/or other parties; and/or
□
b) does not come from and is not for money laundering and/or terrorism financing or proliferation of weapons of mass destruction;
□
3) a notarized statement letter from each prospective shareholder at least stating that the person concerned:
□
a) is committed to complying with regulations, particularly in the banking and Sharia banking sectors and supporting Financial Services Authority policies;
□
b) is committed to taking necessary measures in the event that the BPRS faces capital or liquidity difficulties in conducting its business activities;
□
c) has never been convicted of a criminal offense that has been decided by a court and has acquired permanent legal force consisting of:
□
i. criminal offenses in the Financial Services Sector whose sentences have been completed within the last 20 (twenty) years prior to submission;
□
ii. criminal offenses, namely criminal offenses listed in the Criminal Code (KUHP) and/or similar KUHPs abroad with a prison sentence threat of 1 (one) year or more whose sentences have been completed within the last 10 (ten) years prior to submission;
and/or
□
iii. other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, in the tax field, forestry field, environmental field, marine and fisheries field, whose sentences have been completed within the last 20 (twenty) years prior to submission;
□
d) is not currently prohibited from becoming a Principal Party, which is included in the list of failed parties, list of suspected terrorists and terrorist organizations, and financing proliferation of weapons of mass destruction;
□
e) has never been declared bankrupt and/or has never been a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was found guilty causing a company to be declared bankrupt based on a court decision within the last 5 (five) years prior to submission;
□
f) does not have non-performing loans and/or financing;
□
g) does not transfer ownership of BPRS shares held, within a certain period (minimum 5 (five) years), except based on a Financial Services Authority decision;
□
h) is willing to strengthen capital, if required by the Financial Services Authority;
□
i) is not currently undergoing legal processes, is not currently undergoing competence and propriety assessment at a Financial Service Institution (LJK) and/or is not currently in a re-assessment process due to indications of integrity problems, financial feasibility/reputation, and/or competence at an LJK;
□
j) is committed to the healthy operational development of the BPRS;
□
k) will not commit and/or repeat acts and/or actions that cause the person concerned to be included as a party prohibited from becoming a Principal Party (for candidates who were previously prohibited as Principal Parties);
□
l) will not conduct certain activities that are estimated to worsen the financial and non-financial conditions of the BPRS;
□
m) will not accept the provision of funds and/or
□
any facilities that are not reasonable from the BPRS; n) implements the direction and strategy for the healthy development of the BPRS, which considers financing for Productive Micro and Small Enterprises (UMK) for the local community; and
□
o) is willing to accept the results of the competence and propriety assessment and will not file claims or lawsuits in any form against the results of the competence and propriety assessment established by the Financial Services Authority.
□
4) documents on the direction and strategy plan for BPRS development for at least 3 (three) years since the BPRS operates as a guideline for the healthy development of the BPRS, which also includes regional economic development considering financing for Productive Micro and Small Enterprises (UMK) by considering regional potential and is intended for the local community.
□
c. in the case of prospective non-PSP shareholders being legal entities:
□
1) copy of the deed of establishment of the legal entity including the articles of association and its amendments which have received approval from the competent authority, except for local governments;
□
2) documents stating the identity of all members of the Board of Directors and members of the Board of Commissioners consisting of:
□
a) photocopy of identification, consisting of a valid Identity Card (KTP);
□
b) curriculum vitae; □ □ c) recent color passport photo size 4x6 cm;
□
d) photocopy of Tax Identification Number (NPWP) of the legal entity;
□
e) photocopy of Tax Identification Number (NPWP) of each member of the Board of Directors and member of the Board of Commissioners for Limited Liability Companies or equivalent positions for other legal entities.
□
In the case where the prospective shareholder is a local government, the document stating identity is a document from the Head of the Region or a party appointed to represent the local government.
□
3) ownership data in the form of a list of shareholders along with details of each share ownership;
□
4) financial reports for the last 2 (two) years prior to the date of the application letter, including balance sheets, profit and loss statements, cash flow statements, statements of changes in equity, and notes to the financial reports, except for local governments;
For legal entities having an investment of Rp1,000,000,000.00 (one billion rupiah) or more, the financial reports at the end of the year prior to the date of the application letter must be audited by a public accountant, except for local governments.
□
5) documents on the direction and strategy plan for BPRS development for at least 3 (three) years since the BPRS operates as a guideline for the healthy development of the BPRS, which also includes regional economic development considering financing for Productive Micro and Small Enterprises (UMK) by considering regional potential and is intended for the local community;
□
6) a notarized statement letter from all members of the board of directors or members of the board of commissioners or management of the relevant legal entity stating that the funds used:
□
a) do not come from loans or financing facilities in any form from banks and/or other parties; and/or
□
b) do not come from and are not for money laundering and/or terrorism financing or proliferation of weapons of mass destruction;
□
In the case where the prospective BPRS shareholder is a local government, the statement letter is replaced with a Decision of the Head of the Region stating that the source of capital deposits has been budgeted in the Regional Revenue and Expenditure Budget (APBD) and has been approved by the Regional House of Representatives (DPRD);
□
7) a notarized statement letter from the legal entity signed by all members of the board of directors and members of the board of commissioners, containing at least:
□
a) commitment to comply with regulations, particularly in the banking and Sharia banking sectors and supporting Financial Services Authority policies;
□
b) commitment to take necessary measures in the event that the BPRS faces capital or liquidity difficulties in conducting its business activities;
□
c) does not have non-performing loans and/or financing;
□
d) does not transfer ownership of BPRS shares held, within a certain period (minimum 5 (five) years), except based on a Financial Services Authority decision;
□
e) is willing to strengthen capital, if required by the Financial Services Authority;
□
f) is not currently undergoing legal processes and/or competence and propriety assessment at an LJK.
□
8) a notarized statement letter from each member of the board of directors and each member of the board of commissioners of the legal entity, at least stating that the person concerned:
□
a) is committed to complying with regulations, particularly in the banking and Sharia banking sectors and supporting Financial Services Authority policies;
□
b) has never been convicted of a criminal offense that has been decided by a court and has acquired permanent legal force consisting of:
□
i. criminal offenses in the Financial Services Sector whose sentences have been completed within the last 20 (twenty) years prior to submission;
□
ii. criminal offenses, namely criminal offenses listed in the Criminal Code (KUHP) and/or similar KUHPs abroad
□
with a prison sentence threat of 1 (one) year or more whose sentences have been completed within the last 10 (ten) years prior to submission; and/or
□
iii. other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, in the tax field, forestry field, environmental field, marine and fisheries field, whose sentences have been completed within the last 20 (twenty) years prior to submission;
□
c) is not currently prohibited from becoming a Principal Party, which is included in the list of failed parties, list of suspected terrorists and terrorist organizations, and financing proliferation of weapons of mass destruction;
□
d) has never been declared bankrupt and/or has never been a shareholder, member of the Board of Directors or member of the Board of Commissioners who was found guilty causing a company to be declared bankrupt based on a court decision within the last 5
□
(five) years prior to submission; e) does not have non-performing loans and/or financing;
□
f) is not currently undergoing legal processes;
□
9) a notarized statement letter from the legal entity signed by all members of the board of directors and members of the board of commissioners or management at least stating that the person concerned:
□
a) will not commit and/or repeat acts and/or actions that cause the person concerned to be included as a party prohibited from becoming a Principal Party (for candidates who were previously prohibited as Principal Parties);
□
b) will not conduct certain activities that are estimated to worsen the financial and non-financial conditions of the BPRS; and
□
c) does not accept the provision of funds and/or any facilities that are not reasonable from the BPRS.
□
10) the entire business group structure related to the BPRS and the controlling legal entity of the BPRS up to the Ultimate Controlling Shareholder (PSPT), except for local governments;
□
11) a notarized statement letter from the management of the legal entity stating that the person concerned has provided correct and complete information regarding the BPRS group structure up to the ultimate owner, in the event that the legal entity is a prospective PSP BPRS;
□
12) a notarized statement letter from the prospective PSP regarding willingness to provide data and information related to the business group structure to the Financial Services Authority for supervisory purposes;
□
Ultimate Controlling Shareholder
13) Questionnaire for prospective Ultimate Controlling Shareholders (PSPT) of BPRS, whether for prospective individuals or prospective legal entities, in accordance with the Financial Services Authority Circular regarding the assessment of competence and propriety for controlling shareholders, prospective directors, and prospective commissioners of banks.
□
14) a notarized statement letter from the PSPT, namely:
□
a) the statement letter as referred to in item 2.b.3), in the event that the PSPT is an individual;
□
b) a statement letter from the legal entity signed by all members of the board of directors and members of the board of commissioners or management as per item 2.c.7), in the event that the PSPT established by the Financial Services Authority is a legal entity other than a local government;
□
15) a written commitment from the PSPT stating willingness to implement the direction and strategy plan for the healthy development of the BPRS, which considers financing for Productive Micro and Small Enterprises (UMK) for the local community;
□
Board of Directors Members, Board of Commissioners Members, DPS Members, and Executive Officers

Candidates for the Board of Directors, candidates for the Board of Commissioners, and candidates for DPS members, in the event of changes:

□
a. List of the composition of Board of Directors members or Board of Commissioners members, and DPS members;
□
b. Requirement documents for Directors and Commissioners in accordance with the Financial Services Authority Circular regarding the assessment of competence and propriety for controlling shareholders, prospective directors, and prospective commissioners of banks.
□
c. Documents for DPS □ □
1) latest passport photo size 4 x 6 cm;
□
2) photocopy of identification consisting of KTP;
□
3) curriculum vitae; □ □
4) a notarized statement letter from the prospective DPS member stating that the person concerned:
□
a) is committed to complying with regulations and legislation, particularly in the banking and Sharia banking sectors and willing to support OJK policies;
□
b) has never been convicted of a criminal offense consisting of;
i. criminal offenses in the Financial Services Sector whose sentences have been completed within the last 20 (twenty) years prior to nomination;
ii. criminal offenses, namely criminal offenses listed in the Criminal Code (KUHP) and/or similar KUHPs abroad with a prison sentence threat of 1 (one) year or more whose sentences have been completed within the last 10 (ten) years prior to nomination;
and/or
□
iii. other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, in the tax field, forestry field, environmental field, marine and fisheries field, whose sentences have been completed within the last 20 (twenty) years prior to nomination
c) is not currently prohibited from becoming a Principal Party, which is not included in the DTL according to Financial Services Authority Regulations regarding re-assessment for principal parties of financial service institutions;
□
d) does not have non-performing loans and/or financing;
□
e) has never been declared bankrupt and/or has never been a shareholder, controller, member of the Board of Directors or member of the Board of Commissioners who was found guilty causing a company to be declared bankrupt within the last 5 (five) years prior to nomination;
□
5) a statement letter from the prospective DPS member that the person concerned does not violate regulations regarding concurrent positions, where DPS members cannot hold concurrent positions as DPS members in more than 4 (four) other Sharia financial institutions;
□
6) a certificate or letter from educational and training institutions and/or the National Sharia Council-Majelis Ulama Indonesia regarding education and/or training in the field of Sharia muamalah and in the field of banking and/or finance in general that the prospective DPS member has attended;
□
7) a recommendation letter from the National Sharia Council-Majelis Ulama Indonesia for prospective DPS members who have not previously possessed the aforementioned recommendation letter;
□

Executive Officers: □ □
a. photocopy of identification, consisting of a valid Identity Card (KTP);

□
b. curriculum vitae; and □ □
c. recent color passport photo size 4x6 cm.
□
Organizational Structure

Organizational structure, human resource composition, job descriptions, and standard operating procedures, covering at least:

□
a. human resource management including policies: employee regulations, ranks, remuneration, promotions, employee welfare, training and competency development;
□
b. job descriptions and responsibilities of Board of Directors members, Board of Commissioners members, DPS members, Executive Officers, and employees;
□
c. internal audit function; □ □
d. cash management; □ □ e. fund placement and financing provision;
□
f. fund mobilization; □ □ g. bookkeeping; □ □ h. document management and storage; and
□
i. information technology management. □ □
Operational Readiness

Proof of operational readiness, covering at least:

□
a. organizational structure including personnel composition; b. work systems and procedures
c. electronic systems and information technology including those related to the preparation of financial reports and information regarding telecommunications networks;
□
d. list of fixed assets and inventory; □ □ e. proof of office building control including proof of ownership or lease agreement for the office building supported by proof of ownership from the lessor;
□
f. photos and/or videos of the office building and room layout;
□
g. examples of forms or documents to be used for BPRS operations; h. photocopy of Tax Identification Number (NPWP); and
□
i. business registration number serving as a company registration certificate;
□
Other LJKs Owned by PSP or Prospective PSP

List and financial reports of the BPRS and/or other LJKs owned by the PSP or prospective PSP, in the event of PSP changes, showing that the BPRS and/or other LJKs owned by the PSP or prospective PSP:

□
a. are not in a loss condition; and □ □ b. have healthy capital, liquidity, and profitability ratios referring to the applicable assessment standards for each LJK.
□
We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with Financial Services Authority Regulation Number ... Year ... concerning Sharia Micro Finance Banks to be submitted to the Financial Services Authority for the purpose of applying for a business license for the establishment of a BPRS. (City), (date-month-year) (Signature above stamp duty) (Full Name of BPRS President Director)

Part D
To
Head of the Sharia Banking Regulation and Licensing Work Unit Subject: Report on the Implementation of BPRS Business Activities
Referring to the Decision of the Commissioners of the Financial Services Authority Number ......... dated ....... concerning Approval of BPRS Business License ............., we hereby report that we have commenced business activities on date ............
This is for your information.
(BPRS Board of Directors)
(Signature)
(Full Name)
Copy to:
Head of the Licensing and Banking Information Department

Part E
I. DOCUMENTS FOR APPLICATION FOR APPROVAL OF CHANGE OF BUSINESS LICENSE FROM CONVENTIONAL BANK TO BPRS
This section contains the requirements necessary to submit an application for approval of the change of business license of a BUS (Conventional Bank) and BUK (Universal Bank), hereinafter referred to as a conventional bank, to a BPRS (Sharia Rural Bank).

A. Preparation documents for the change of business license include:

Minutes of the General Meeting of Shareholders agreeing to the plan to change the business license of the conventional bank to a BPRS;
Reasons for changing the business license of the conventional bank to a BPRS;
List of shareholders recorded in the latest articles of association prior to the submission of the application, namely:
a) for individuals, must be accompanied by documents containing at least a statement letter from the PSP (Ultimate Beneficial Owner/Controller) stating their willingness to overcome the capital and liquidity difficulties faced by the BPRS in conducting its business; b) for legal entities, must be accompanied by documents containing at least:
1) a statement letter from the management of the legal entity stating their willingness to overcome the capital and liquidity difficulties faced by the BPRS in conducting its business activities, if the legal entity is the PSP of the BPRS. In the event that the shareholder of the conventional bank is a regional government, the statement letter is made by the head of the region;
2) a statement letter from the last PSP stating their willingness to overcome the capital and liquidity difficulties faced by the BPRS in conducting its business activities.
The last PSP is an individual or legal entity that directly or indirectly owns shares of the BPRS and is the ultimate controller of the entire business group structure controlling the BPRS; A statement letter is made by the party who, in the assessment of the Financial Services Authority (OJK), controls directly or indirectly the entire business group; and
3) a statement letter from the management of the legal entity stating that they have provided correct and complete information regarding the BPRS business group structure up to the last PSP, if the legal entity is the PSP of the BPRS.
List of members of the Board of Directors, members of the Board of Commissioners, and members of the Sharia Supervisory Board (DPS):
a) if there are no changes, accompanied by documents containing at least:
1) proof of participation in the maintenance of professional competency certification program in the banking sector;
2) a statement letter from members of the Board of Directors and members of the Board of Commissioners that they meet the regulations regarding the majority of Board of Directors and Board of Commissioners members not having family or in-law relationships up to the second degree with other members of the Board of Directors or Board of Commissioners in accordance with this Financial Services Authority Regulation;
3) a statement letter from members of the Board of Directors that they do not hold concurrent positions as members of the Board of Directors, members of the Board of Commissioners, members of the DPS, and/or Executive Officials at financial institutions, business entities, and/or other institutions in accordance with the Financial Services Authority Regulation regarding the application of corporate governance for Sharia Rural Banks;
4) a statement letter from members of the Board of Commissioners that they do not hold concurrent positions exceeding the regulations in accordance with the Financial Services Authority Regulation regarding the application of corporate governance for Sharia Rural Banks;
5) a statement letter from members of the DPS that they do not hold concurrent positions exceeding the regulations in accordance with the Financial Services Authority Regulation regarding the application of corporate governance for Sharia Rural Banks;
b) if there are changes, accompanied by document requirements for the Board of Directors and Board of Commissioners in accordance with the Financial Services Authority Regulation regarding the fit and proper test for key persons of financial service institutions, and for the DPS documents in accordance with this Financial Services Authority Regulation.
Plan for organizational structure, human resource composition, and description of duties and positions.
The organizational structure plan and human resource composition include, among others, an organizational chart, horizontal and vertical lines of responsibility, and positions from the lowest level up to the Executive Official level. The organizational structure and human resource composition are prepared in accordance with, among others, the Financial Services Authority Regulation regarding the application of corporate governance for Sharia Rural Banks, the Financial Services Authority Regulation regarding the application of risk management for Sharia Rural Banks, and the Financial Services Authority Regulation regarding standards for information technology services for Rural Credit Banks and Sharia Rural Banks;
Business plan as a BPRS describing the direction of policies and strategic steps for business development as a BPRS, submitted together with the preparation documents, with coverage in accordance with the Financial Services Authority Regulation regarding the business plan for Rural Credit Banks and Sharia Rural Banks;
Infrastructure readiness plan including, among others, preparation for changes in systems and work procedures, electronic systems, and information technology;
Operational readiness plan, which must at least include a list of fixed assets and inventory, proof of office readiness and supporting equipment, including forms or documents to be used for BPRS operations;
Latest financial statements in the format of conventional bank financial statements and BPRS financial statements. The latest financial statements are those prior to the submission of the application for change of business license from a conventional bank to a BPRS. Financial statements and other reports are prepared by referring to accounting standards or guidelines and regulations including those governing the reporting of conventional banks through the Financial Services Authority reporting system and the reporting of Sharia Rural Banks through the Financial Services Authority reporting system; and
Proof of announcement and socialization of the plan to change the business license from a conventional bank to a BPRS to all customers and the public.
Proof of announcement of the change of business license is carried out through:
a. a letter of notification to all customers, containing at least:
1) information and consequences of the change of business license from a conventional bank to a BPRS; and
2) the mechanism for settling the funds of conventional bank customers in the event that customers are not willing to become BPRS customers.
b. written announcements at all office networks in strategic locations;
c. newspapers with national circulation and in the province where the conventional bank's office network is located; and
d. announcements through online media such as the conventional bank's website and/or social media.
For BUKs submitting an application to change their business license to a BPRS, additional documents must also be submitted as follows:
feasibility study regarding market opportunities and economic potential to become a BPRS;
mapping of financing and fund collection products in accordance with Sharia principles;
proof of employee participation in Sharia banking training;
availability of policies and work procedures in accordance with Sharia principles; and
availability and readiness of information technology systems supporting BPRS operations.

B. Action plan documents regarding:

draft deed of amendment to the articles of association and ownership status including the change of status from a public company to a closed company, carried out in accordance with capital market sector legislation. The draft deed of amendment to the articles of association includes, among others, matters that have changed, such as:
a. the name confirming the change from a conventional bank to a BPRS and the domicile, for example PT Bank "A" becoming PT BPRS "A"; and b. confirmation of the change in business activities and license from a conventional bank to a BPRS. The change of status from a public company to a closed company involves, among others, the consequences of:
a. changing status; and b. repurchasing shares or appointing a controller or having another party conduct a tender offer to public shareholders, in accordance with legislation.
plan to cease business activities of the conventional bank that are not permitted for BPRS; and
plan to adjust the type and area of the conventional bank's office network that is not permitted for BPRS.

II. CHECKLIST OF DOCUMENTS FOR APPLICATION FOR APPROVAL OF CHANGE OF BUSINESS LICENSE FROM CONVENTIONAL BANK TO BPRS LICENSE

No. Description Complete Yes No Remarks
Preparation Documents for Change of Business License

Minutes of the General Meeting of Shareholders agreeing to the plan to change the business license of the conventional bank to a BPRS. [ ] [ ]
Reasons for changing the business license of the conventional bank to a BPRS. [ ] [ ]
List of shareholders:
a. in the case of individuals, accompanied by documents containing at least a statement letter from the PSP stating their willingness to overcome the capital and liquidity difficulties faced by the BPRS in conducting its business; [ ] [ ] b. in the case of legal entities, accompanied by documents containing at least:
1) a statement letter from the management of the legal entity stating their willingness to overcome the capital and liquidity difficulties faced by the BPRS in conducting its business activities, in the event that the legal entity is the PSP:
[ ] [ ]
2) a statement letter from the last PSP stating their willingness to overcome the capital and liquidity difficulties faced by the BPRS in conducting its business activities; and
[ ] [ ]
3) a statement letter from the management of the legal entity stating that they have provided correct and complete information regarding the BPRS business group structure up to the last owner, in the event that the legal entity is the PSP;
[ ] [ ]
List of members of the Board of Directors, members of the Board of Commissioners, and members of the DPS:
a. in the event that there are no changes, accompanied by documents containing at least:
1) a statement letter from members of the Board of Directors and members of the Board of Commissioners that they meet the regulations regarding the majority of Board of Directors and Board of Commissioners members not having family or in-law relationships up to the second degree with other members of the Board of Directors or Board of Commissioners as regulated in the Financial Services Authority Regulation regarding the application of corporate governance for Sharia Rural Banks;
[ ] [ ]
2) a statement letter from members of the Board of Directors that they do not hold concurrent positions at banks, non-bank companies, and/or other institutions in accordance with the Financial Services Authority Regulation regarding the application of corporate governance for Sharia Rural Banks;
[ ] [ ]
3) a statement letter from members of the Board of Commissioners that they do not hold concurrent positions exceeding the regulations in accordance with the Financial Services Authority Regulation regarding the application of corporate governance for Sharia Rural Banks;
[ ] [ ]
4) a statement letter from members of the DPS that they do not hold concurrent positions exceeding the regulations in accordance with the Financial Services Authority Regulation regarding the application of corporate governance for Sharia Rural Banks;
[ ] [ ] b. in the event that there are changes, accompanied by document requirements as referred to in the Financial Services Authority Regulation regarding the fit and proper test for key persons of financial service institutions for the Board of Directors and Board of Commissioners; [ ] [ ]
c. in the event that there are changes, accompanied by document requirements as referred to in this Financial Services Authority Regulation for the DPS.
[ ] [ ]
Plan for organizational structure, human resource composition, and description of duties and positions;
[ ] [ ]
Business plan as a BPRS;
[ ] [ ]
Infrastructure readiness plan;
[ ] [ ]
Operational readiness plan;
[ ] [ ]
Latest financial statements in the format of conventional bank financial statements and BPRS financial statements; and
[ ] [ ]
Proof of announcement and socialization of the plan to change the business license from a conventional bank to a BPRS to all customers and the public;
[ ] [ ]
Action Plan Documents
Draft deed of amendment to the articles of association and ownership status including the change of status from a public company to a closed company;
[ ] [ ]
Cessation of business activities of the conventional bank that are not permitted for BPRS; and
[ ] [ ]
Adjustment of the type and area of the conventional bank's office network that is not permitted for BPRS.
[ ] [ ]

We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual situation and has been completed with documents in accordance with Financial Services Authority Regulation Number ... Year ... regarding Sharia Rural Banks to be submitted to the Financial Services Authority in the context of applying for a change of business license of BUS to a BPRS license based on the initiative of BUK.

(City), (Date-Month-Year)
(Signature above stamp is sufficient)
(Name of Managing Director of BUS)

III. DOCUMENTS FOR APPROVAL OF AMENDMENT TO ARTICLES OF ASSOCIATION FOR BPRS RESULTING FROM CHANGE OF BUSINESS LICENSE
BPRS resulting from the change from a conventional bank submits to OJK the following documents:
a. amendment to the articles of association in accordance with legislation; and b. approval of the amendment to the articles of association as referred to in letter a to the competent authority, at the latest 10 (ten) working days from the date of the letter of approval of the amendment to the articles of association from the competent authority.

Part F
IMPLEMENTATION OF ADJUSTMENT OF BUSINESS ACTIVITIES AND OFFICE NETWORK OF BUS OR BUK TO BPRS

I. Introduction
In the context of implementing the change of business license of BUS or BUK to a BPRS license, BUS or BUK must compile and implement an action plan, which must at least include:
a. draft deed of articles of association and ownership status including the change of status from a public company to a closed company; b. cessation of business activities of BUS or BUK that are not permitted for BPRS, except for the settlement of rights and obligations; and
c. adjustment of the type and area of the office network of BUS or BUK that is not permitted for BPRS.
This action plan must be completed within a maximum period of 1 (one) year from the date the BPRS business license is issued. Based on certain considerations regarding the implementation of the adjustment of the form and business activities of BUS or BUK to BPRS, the Financial Services Authority may set a different completion period for the action plan.

II. Draft Deed of Amendment to Articles of Association and Ownership Status Including Change of Status from Public Company to Closed Company
a. The change of business license of BUS or BUK to a BPRS license must be followed up with legal aspect adjustments including the preparation of a draft deed of amendment to the articles of association which includes, among others, matters that have changed, such as:

the name confirming the change from BUS or BUK to BPRS and the domicile, for example PT Bank "A" becoming PT BPRS "A".
confirmation of the change in business activities and license from BUS or BUK to BPRS.
The implementation of the GMS approval for the change of business license and amendment to the articles of association must be carried out at the latest 2 (two) months from the date the business license from the Financial Services Authority is issued. b. For BUS or BUK with the status of a public company, it is mandatory to adjust the BPRS resulting from the change of business license from a public conventional bank by referring to capital market sector legislation, including the Capital Market Law and Financial Services Authority Regulations governing the conduct of activities in the capital market sector, information disclosure or material facts by issuers or public companies, and/or voluntary tender offers. BUS or BUK that will implement the change of status from a public company to a closed company must make an announcement to the public before the independent GMS and shareholders who are not affiliated parties of the public company are held. Meanwhile, matters related to the determination of share purchase prices must be carried out while protecting the interests of public shareholders.

III. Cessation of Business Activities of BUS or BUK Not Permitted for BPRS
a. Giro deposits and related clearing activities Business activities included in giro deposits and related clearing activities include, among others, giro transactions, BUS or BUK giro accounts at Bank Indonesia, and/or participation in BI-RTGS, BI-SSSS, SKNBI, and BI-FAST. In order to settle obligations to Bank Indonesia, BUS or BUK may open a deposit account (escrow account) at Bank Indonesia in the name of BUS or BUK. BUS or BUK must make an announcement to customers, including for the settlement or transfer of rights and obligations to customers. Further procedures regarding the settlement of giro deposits and related clearing activities refer to, among others, legislation regarding participation in the Bank Indonesia National Clearing System. b. Business activities in foreign currency, except for Foreign Currency Exchange Activities (KUPVA) Business activities conducted in foreign currency include, among others, fund collection, fund disbursement including disbursement and placement in other banks, trade finance such as letters of credit and bank guarantees in foreign currency, and treasury. In the event that BUS or BUK already has approval to conduct KUPVA, the BPRS resulting from the change of business license from BUS or BUK may continue these business activities. The BPRS resulting from the change of business license from BUS or BUK is not permitted to serve the opening of new foreign currency savings accounts and transactions that cause the foreign currency account balance to increase (except incoming transfers) as of the date the plan to cease foreign currency business activities is submitted to the Financial Services Authority. During a transition period of at most 1 (one) year, the BPRS resulting from the change of business license from BUS or BUK establishes a mechanism for converting foreign currency to Rupiah, including the possibility of cooperating with other BUS or BUK to accept the transfer of foreign currency savings account balances managed by Branch Offices or sub-branches outside the region. In the event that the transition period has ended and there are still unsettled foreign currency balances, all unsettled foreign currency giro and savings accounts may be converted to savings accounts, while foreign currency deposits may be converted to Rupiah deposits. Regarding loans received in the form of foreign currency, the BPRS resulting from the change of business license from BUS or BUK may carry out, among others:
1) full repayment of received loans at the end of the 1 (one) year transition period as long as it does not increase liquidity risk; and/or
2) conversion of received loans in foreign currency to Rupiah.
c. Issuance of debt instruments or bonds
Settlement through the repurchase of debt securities (bonds) is carried out by referring to legislation regarding, among others, the Financial Services Authority Regulation regarding debt securities and/or sukuk trust agreements. d. Ownership of securities Ownership of securities is settled during the implementation period of the action plan. The proceeds from the sale of such securities may become one of the sources of reserves for the settlement of obligations by the BPRS resulting from the change of business license from BUS or BUK. e. Interbank Sharia Money Market Transactions (PUAS) As of the date the plan to cease PUAS business activities is submitted to the Financial Services Authority, BUS or BUK is no longer permitted to conduct new transactions in PUAS. BUS or BUK must make an announcement to other Sharia banks that conduct PUAS transactions. Settlement and/or transfer of rights and obligations in PUAS must be carried out before submitting an application to BI to change the status of participation in the Bank Indonesia Electronic Trading Platform (BI-ETP), BI-RTGS, BI-SSSS, SKNBI, and BI-FAST to be closed.
1) Taking (Receiving)
Repayment of loans in PUAS according to the tenor (in the event that the tenor does not exceed the transition period), if the loan tenor exceeds the transition period, then the tenor must be adjusted or early repayment must be made.
2) Placing (Depositing)
Receipt of loan payments according to the tenor (in the event that the tenor does not exceed the transition period), if the loan tenor exceeds the transition period, then the tenor must be adjusted. f. Other business activities not permitted for BPRS, including the issuance of Negotiable Debt Securities (SKBDN), bank guarantees in Rupiah, and business activities regulated by other authorities such as the issuance of financing cards (Sharia cards) as regulated in legislation regarding payment instruments using cards, payment transaction processing services, and/or national payment gateways.

IV. Adjustment of the Type and Area of the Office Network of BUS or BUK to that Permitted for BPRS
In carrying out the adjustment of the type and area of the Office Network, BUS or BUK that will change its business license carries out steps including, among others:
a. submission of information in the action plan document to the Financial Services Authority regarding the type and area of the office network that does not comply with BPRS regulations; b. announcement to customers, debtors, and/or other parties regarding the plan to cease transactions at the office network as referred to in letter a;
c. submission of the plan to close, relocate, and/or change the status of the office network as referred to in letter a, including the plan for the transfer or settlement of claims and obligations to customers and other parties.
After the decision to change the business license to BPRS is issued, the BPRS resulting from the change of business license from BUS or BUK settles all business activities at the office network, including the transfer or settlement of all conventional bank claims and obligations to customers and other parties. In the context of closing/relocating/changing the status of the office network, the BPRS resulting from the change of business license from BUS or BUK submits, among others:
a. proof of transfer of rights and obligations to the Office Network area permitted for BPRS or to another bank, or proof of settlement of all obligations to customers and other parties; b. a statement letter from the members of the Board of Directors of the BPRS resulting from the change of business license from a conventional bank that the steps to settle all office obligations to customers and other parties have been completed and that any future claims will become the responsibility of the members of the Board of Directors of the BPRS resulting from the change of business license from BUK; and/or
c. proof of office readiness including facilities.

Part G
DOCUMENT CHECKLIST FOR APPLICATION FOR CAPITAL INCREASE RESULTING IN CHANGE OF CONTROLLING SHAREHOLDER (PSP)

No. Description of Completeness Yes No Remarks

Proof of capital deposit in the form of a photocopy of a deposit receipt at a Sharia commercial bank/Sharia business unit, another BPRS, or the BPRS concerned.
☐ ☐
Explanation of the source of funds used for the capital deposit in item 1, which explains the entire flow of funds from the initial asset source of the PSP to the point where the funds are recorded as a capital deposit.
☐ ☐
Supporting documents regarding the source of funds used for the capital deposit in item 1, including:
☐ ☐ a. proof of capital deposit accounting in the form of journals and financial position reports before and after the capital deposit; ☐ ☐ b. account mutations for the last 6 (six) months in the event that the capital deposit comes from savings or checking accounts; ☐ ☐
c. proof of withdrawal of deposit receipts in the event that the capital deposit comes from deposits, including:
1) transfer slips or account mutations holding the withdrawal proceeds; and
2) photocopy of the deposit receipt that has been withdrawn;
☐ ☐ d. proof of sales transactions, including copies of deeds or sales agreements, photocopies of receipts, in the event that the capital deposit comes from the proceeds of asset sales, proof of tax payment for the sales transaction, and proof of payment from the asset buyer (including transfer slips or account mutations holding the proceeds of the asset sale); and/or ☐ ☐ e. copies of donation deeds and/or inheritance documents, in the event that the capital deposit comes from donations and/or inheritance. ☐ ☐
Specifically for capital increases derived from the dividend distribution of the BPRS concerned, accompanied by documents:
☐ ☐ a. minutes of the General Meeting of Shareholders (RUPS) on dividend distribution; ☐ ☐ b. proof of capital deposit accounting in the form of dividend distribution journals and the BPRS financial position reports before and after the dividend distribution; and ☐ ☐
c. proof of withholding or payment of taxes on dividends.
☐ ☐
A stamped declaration letter from each PSP, stating that the source of funds used:
a. does not come from loans or financing facilities in any form from banks and/or other parties; and/or b. does not come from and for money laundering and/or terrorism financing or the proliferation of weapons of mass destruction.
Documentation requirements for prospective PSPs, both individuals and legal entities, including the current PSP, referring to the appendices as regulated in the Financial Services Authority Circular regarding the assessment of competence and propriety for prospective controlling shareholders, prospective members of the board of directors, and prospective members of the board of commissioners of banks;
☐ ☐
Other Financial Institutions Owned by PSP or Prospective PSP
List of BPRS and/or other financial institutions owned by the BPRS PSP or prospective BPRS PSP, accompanied by:
☐ ☐ a. Financial position reports (balance sheets); ☐ ☐ b. income statements; and ☐ ☐
c. certain ratios including capital adequacy, liquidity, and profitability ratios referring to the applicable assessment standards for each financial institution.
☐ ☐
Financial reports of the PSP as a legal entity include financial position reports (balance sheets), income statements, cash flow statements, statements of changes in equity, and notes to the financial position reports as of the last position on the date of the capital deposit increase or at the end of the month before the date of the application for the capital deposit increase.
☐ ☐
We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual situation and has been completed with documents in accordance with the Financial Services Authority Regulation Number ... Year ... concerning Sharia Rural Financing Banks to be submitted to the Financial Services Authority in the context of an application for approval of a capital deposit increase resulting in a change of controlling shareholder (PSP). (City), (date-month-year) (Signature above sufficient stamp) (Full Name of BPRS Board of Directors)

Part H
DOCUMENT CHECKLIST FOR APPLICATION FOR APPROVAL OF SHARE OWNERSHIP CHANGES RESULTING IN CHANGE OF CONTROLLING SHAREHOLDER (PSP)

No. Description of Completeness Yes No Remarks

Explanation of the source of funds used to purchase shares, which explains the entire flow of funds from the initial asset source of the PSP to the point where the funds are used to purchase shares.
☐ ☐
Proof of share transfer (including but not limited to share sale deeds, donation deeds, and/or inheritance documents) accompanied by:
☐ ☐ a. proof of payment for the share purchase; ☐ ☐ b. proof of sales transactions, including copies of deeds or sales agreements; and/or ☐ ☐
c. copies of donation deeds and/or inheritance documents in the event that the share transfer comes from donations and/or inheritance.
☐ ☐
A stamped declaration letter from each PSP, stating that the source of funds used for the share purchase:
a. does not come from loans or financing facilities in any form from banks and/or other parties; and/or b. does not come from and for money laundering and/or terrorism financing or the proliferation of weapons of mass destruction.
Documentation requirements for prospective PSPs, both individuals and legal entities, including the current PSP, referring to the appendices as regulated in the Financial Services Authority Circular regarding the assessment of competence and propriety for prospective controlling shareholders, prospective members of the board of directors, and prospective members of the board of commissioners of banks;
☐ ☐
Other Financial Institutions Owned by PSP or Prospective PSP
List of BPRS and/or other financial institutions owned by the BPRS PSP or prospective BPRS PSP, accompanied by:
☐ ☐ a. financial position reports (balance sheets); ☐ ☐ b. income statements; and ☐ ☐
c. certain ratios including capital adequacy, liquidity, and profitability ratios referring to the applicable assessment standards for each financial institution.
☐ ☐
Financial reports of the PSP as a legal entity include financial position reports (balance sheets), income statements, cash flow statements, statements of changes in equity, and notes to the financial position reports as of the last position on the date of the share transfer or at the end of the month before the date of the application for the share ownership change resulting in a change of controlling shareholder (PSP).
☐ ☐
We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual situation and has been completed with documents in accordance with the Financial Services Authority Regulation Number ... Year ... concerning Sharia Rural Financing Banks to be submitted to the Financial Services Authority in the context of an application for approval of a share ownership change resulting in a change of controlling shareholder (PSP). (City), (date-month-year) (Signature above sufficient stamp) (Full Name of BPRS Board of Directors)

Part I
I. DOCUMENTS FOR SUBMISSION OF REPORTS ON CAPITAL INCREASES AND/OR SHARE OWNERSHIP CHANGES THAT DO NOT RESULT IN A CHANGE OF CONTROLLING SHAREHOLDER (PSP)
BPRS reports changes in share ownership composition that do not result in a change of controlling shareholder (PSP) to the Financial Services Authority accompanied by documents including:

proof of capital deposit accompanied by supporting documents, if accompanied by a capital deposit increase;
proof of share transfer accompanied by supporting documents, if not accompanied by a capital deposit increase;
minutes of the General Meeting of Shareholders (RUPS);
ownership data accompanied by supporting documents;
copy of the deed of amendment of the articles of association;
declaration letter from shareholders stating that the source of funds does not come from loans and money laundering; and
letter of acceptance of notification of data changes and/or approval of articles of association changes from the competent authority, attached with copies of the deed of change of share ownership and/or change of articles of association.

II. DOCUMENT CHECKLIST FOR SUBMISSION OF REPORTS ON CAPITAL INCREASES AND/OR SHARE OWNERSHIP CHANGES THAT DO NOT RESULT IN A CHANGE OF CONTROLLING SHAREHOLDER (PSP)

No. Description of Completeness Yes No Remarks

Proof of capital deposit in the form of a photocopy of a deposit receipt at a Sharia commercial bank/Sharia business unit, another BPRS, or the BPRS concerned, in the event of a capital deposit increase, accompanied by including:
☐ ☐ a. explanation of the source of funds used for the capital deposit, which explains the entire flow of funds from the initial asset source of the PSP or shareholder to the point where the funds are recorded as a capital deposit; ☐ ☐ b. supporting documents regarding the source of funds used for the capital deposit, including:
☐ ☐
1) proof of capital deposit accounting in the form of journals and financial position reports before and after the capital deposit;
☐ ☐
2) account mutations for the last 6 (six) months in the event that the capital deposit comes from savings or checking accounts;
☐ ☐
3) proof of withdrawal of deposit receipts in the event that the capital deposit comes from deposits, including:
a) transfer slips or account mutations holding the withdrawal proceeds; and b) photocopy of the deposit receipt that has been withdrawn.
☐ ☐
4) proof of sales transactions, including copies of deeds or sales agreements, photocopies of receipts, in the event that the capital deposit comes from the proceeds of asset sales, proof of tax payment for the sales transaction, and proof of payment from the asset buyer (including transfer slips or account mutations holding the proceeds of the asset sale);
and/or
☐ ☐
5) copies of donation deeds and/or inheritance documents, in the event that the capital deposit comes from donations and/or inheritance.
☐ ☐
Specifically for capital increases derived from the dividend distribution of the BPRS concerned, accompanied by documents:
☐ ☐ a. minutes of the General Meeting of Shareholders (RUPS) on dividend distribution; ☐ ☐ b. proof of capital deposit accounting in the form of dividend distribution journals and the BPRS financial position reports before and after the dividend distribution; and ☐ ☐
c. proof of withholding or payment of taxes on dividends.
☐ ☐
Proof of share transfer, in the event that it is not accompanied by a capital deposit increase (including but not limited to share sale deeds, donation deeds, and/or inheritance documents) accompanied by:
☐ ☐ a. Explanation of the source of funds used to purchase shares, which explains the entire flow of funds from the initial asset source of the PSP or shareholder to the point where the funds are used to purchase shares; b. proof of payment for the share purchase; ☐ ☐
c. proof of sales transactions, including copies of deeds or sales agreements; and/or
☐ ☐ d. copies of donation deeds and/or inheritance documents, in the event that the share transfer comes from donations and/or inheritance.
☐ ☐
Ownership data in the form of a list of shareholders and/or PSPs along with details of the size of each share ownership.
☐ ☐
In the event of replacement and/or addition of shareholders, ownership data is accompanied by the following documents:
☐ ☐ a. in the event that non-PSP shareholders or members are individuals:
☐ ☐
1) documents stating the identity of each non-PSP shareholder or member in the form of:
☐ ☐ a) photocopy of identification, in the form of a valid Identity Card (Kartu Tanda Penduduk); ☐ ☐ b) curriculum vitae; ☐ ☐ c) recent color passport photo size 4x6 cm; and ☐ ☐ d) photocopy of Taxpayer Identification Number (NPWP); ☐ ☐
2) stamped declaration letter from each non-PSP shareholder or member, stating that the source of funds used:
☐ ☐ a) does not come from loans or financing facilities in any form from banks and/or other parties; and/or ☐ ☐ b) does not come from and for money laundering and/or terrorism financing or the proliferation of weapons of mass destruction; ☐ ☐
3) stamped declaration letter from each non-PSP shareholder stating at least that the person concerned:
☐ ☐ a) is committed to complying with applicable regulations, especially in the banking and Sharia banking sectors, and supporting the policies of the Financial Services Authority; ☐ ☐ b) is committed to taking necessary measures in the event that the BPRS faces capital or liquidity difficulties in carrying out its business activities; ☐ ☐ c) has never been convicted of a criminal offense that has been decided by a court and has acquired permanent legal force, consisting of:
☐ ☐
i. criminal offenses in the financial services sector, the sentence of which has been served within the last 20 (twenty) years before the application;
☐ ☐
ii. criminal offenses, namely criminal offenses stipulated in the Criminal Code (KUHP) and/or similar foreign KUHPs with a prison sentence threat of 1 (one) year or more, the sentence of which has been served within the last 10 (ten) years before the application;
and/or
☐ ☐
iii. other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, in the tax sector, in the forestry sector, in the environmental sector, in the marine and fisheries sector, the sentence of which has been served within the last 20 (twenty) years before the application;
☐ ☐ d) is not prohibited from becoming a Principal Party, which among others is not listed in the failed list, suspected terrorist list and terrorist organizations list, and proliferation financing of weapons of mass destruction; ☐ ☐ e) has never been declared bankrupt and/or has never been a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was found guilty of causing a company to be declared bankrupt based on a court decision within the last 5 (five) years before the application; ☐ ☐ f) does not have non-performing loans and/or financing; ☐ ☐ g) does not transfer the BPRS share ownership owned, within a certain period (minimum 5 (five) years), except based on a decision of the Financial Services Authority; ☐ ☐ h) is willing to strengthen capital, in the event that it is deemed necessary by the Financial Services Authority; ☐ ☐ i) is not undergoing legal processes, is not undergoing competence and propriety assessment at a financial institution and/or is not in the process of re-assessment due to indications of integrity problems, financial feasibility/reputation, and/or competence at a financial institution; ☐ ☐ j) is committed to the development of a healthy BPRS operational; ☐ ☐ k) will not commit and/or repeat acts and/or actions that cause the person concerned to be included as a party prohibited from becoming a Principal Party (for candidates who have previously been prohibited as Principal Parties); ☐ ☐ l) will not carry out certain activities that are estimated to worsen the financial and non-financial conditions of the BPRS; ☐ ☐ m) will not accept the provision of funds and/or any facilities that are not reasonable from the BPRS; ☐ ☐ n) implements the direction and strategy of healthy BPRS development, which pays attention to financing for productive Micro and Small Enterprises (UMK) for the local community; and ☐ ☐ o) is willing to accept the results of the competence and propriety assessment and will not file claims or lawsuits in any form against the results of the competence and propriety assessment established by the Financial Services Authority; and ☐ ☐
4) documents on the direction and strategy plan for BPRS development for at least 3 (three) years since the BPRS operated as a guideline for the development of a healthy BPRS, which also includes regional economic development paying attention to financing for productive Micro and Small Enterprises (UMK) by considering regional potential and aimed at the local community.
b. in the event that non-PSP shareholders or members are legal entities:
☐ ☐
1) copy of the deed of establishment of the legal entity including the articles of association and its amendments that have received approval from the competent authority, except for local governments;
☐ ☐
2) documents stating the identity of all members of the board of directors and members of the board of commissioners for the Limited Liability Company legal entity or the management structure for the Cooperative legal entity in the form of:
☐ ☐ a) photocopy of identification, in the form of a valid Identity Card (Kartu Tanda Penduduk); ☐ ☐ b) curriculum vitae; ☐ ☐ c) recent color passport photo size 4x6 cm; ☐ ☐ d) photocopy of the Taxpayer Identification Number (NPWP) of the legal entity; and ☐ ☐ e) photocopy of the Taxpayer Identification Number (NPWP) of each member of the board of directors and member of the board of commissioners for the Limited Liability Company legal entity or equivalent positions for other legal entities. ☐ ☐ In the event that the shareholder is a local government, the document stating the identity is the document of the head of the region or the party appointed to represent the local government; ☐ ☐
3) ownership data in the form of a list of shareholders along with details of the size of each share ownership for the Limited Liability Company legal entity, recapitulation of principal savings and mandatory savings of each member and donation list for the Cooperative legal entity, or asset list for foundation legal entities or other legal entities, except for local governments;
☐ ☐
4) financial reports including financial position reports, income statements, cash flow statements, statements of changes in equity, and notes to financial reports, except for local governments;
☐ ☐
5) documents on the direction and strategy plan for BPRS development for at least 3 (three) years since the BPRS operated as a guideline for the development of a healthy BPRS, which also includes regional economic development paying attention to financing for productive Micro and Small Enterprises (UMK) by considering regional potential and aimed at the local community;
☐ ☐
6) stamped declaration letter from all members of the board of directors or members of the board of commissioners or management of the legal entity concerned, stating that the funds used:
a) do not come from loans or financing facilities in any form from banks and/or other parties; and/or ☐ ☐ b) do not come from and for money laundering and/or terrorism financing or the proliferation of weapons of mass destruction. ☐ ☐ In the event that the BPRS shareholder is a local government, the declaration letter is replaced with a Decree of the Head of the Region stating that the source of capital deposit funds has been budgeted in the Regional Revenue and Expenditure Budget and has been approved by the Regional People's Representative Council; ☐ ☐
7) stamped declaration letter from the legal entity signed by all members of the board of directors and members of the board of commissioners or management, stating at least that the person concerned:
a) is committed to complying with applicable regulations, especially in the banking and Sharia banking sectors, and supporting the policies of the Financial Services Authority; ☐ ☐ b) is committed to taking necessary measures in the event that the BPRS faces capital or liquidity difficulties in carrying out its business activities; ☐ ☐ c) does not have non-performing loans and/or financing; ☐ ☐ d) does not transfer the BPRS share ownership owned, within a certain period (minimum 5 (five) years), except based on a decision of the Financial Services Authority; ☐ ☐ e) is willing to strengthen capital, in the event that it is deemed necessary by the Financial Services Authority; ☐ ☐ f) is not undergoing legal processes and/or competence and propriety assessment at a financial institution; ☐ ☐
8) stamped declaration letter from each member of the board of directors and each member of the board of commissioners of the legal entity, stating at least that the person concerned:
a) is committed to complying with applicable regulations, especially in the banking and Sharia banking sectors, and supporting the policies of the Financial Services Authority; ☐ ☐ b) has never been convicted of a criminal offense that has been decided by a court and has acquired permanent legal force, consisting of:
☐ ☐
i. criminal offenses in the financial services sector, the sentence of which has been served within the last 20 (twenty) years before the application;
☐ ☐
ii. criminal offenses, namely criminal offenses stipulated in the Criminal Code (KUHP) and/or similar foreign KUHPs with a prison sentence threat of 1 (one) year or more, the sentence of which has been served within the last 10 (ten) years before the application;
and/or
☐ ☐
iii. other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, in the tax sector, in the forestry sector, in the environmental sector, in the marine and fisheries sector, the sentence of which has been served within the last 20 (twenty) years before the application;
☐ ☐ c) is not prohibited from becoming a Principal Party, which among others is listed in the failed list, suspected terrorist list and terrorist organizations list, and proliferation financing of weapons of mass destruction; ☐ ☐ d) has never been declared bankrupt and/or has never been a shareholder, member of the board of directors, and member of the board of commissioners who was found guilty of causing a company to be declared bankrupt based on a court decision within the last 5 (five) years before the application; ☐ ☐ e) does not have non-performing loans and/or financing; ☐ ☐ f) is not undergoing legal processes; and ☐ ☐
9) stamped declaration letter from the legal entity signed by all members of the board of directors and members of the board of commissioners or management, stating at least that the person concerned:
a) will not commit and/or repeat acts and/or actions that cause the person concerned to be included as a party prohibited from becoming a Principal Party (for candidates who have previously been prohibited as Principal Parties); ☐ ☐ b) will not carry out certain activities that are estimated to worsen the financial and non-financial conditions of the BPRS; and ☐ ☐ c) will not accept the provision of funds and/or any facilities that are not reasonable from the BPRS; ☐ ☐
Financial reports of shareholders that are legal entities include financial position reports (balance sheets), income statements, cash flow statements, statements of changes in equity, and notes to the financial position reports as of the last position on the date of the capital deposit increase or at the end of the month before the date of the capital deposit increase.
☐ ☐
Letter of acceptance of notification of data changes and/or approval of articles of association changes from the competent authority, attached with copies of the deed of change of share ownership and/or change of articles of association.
☐ ☐
We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual situation and has been completed with documents in accordance with the Financial Services Authority Regulation Number ... Year ... concerning Sharia Rural Financing Banks to be submitted to the Financial Services Authority in the context of the submission of reports on capital deposit increases and/or share ownership changes that do not result in a change of controlling shareholder (PSP). (City), (date-month-year) (Signature above sufficient stamp) (Full Name of BPRS Board of Directors)

Part J
I. DOCUMENT CHECKLIST FOR BRANCH OFFICE OPENING LICENSE APPLICATION
No. Description Completeness
Yes No Remarks

Document on the analysis of potential and feasibility of opening a Branch Office as referred to in Appendix Part D;
☐ ☐
Evidence of operational readiness for opening a Branch Office, including:
☐ ☐ a. list of fixed assets and inventory; ☐ ☐ b. organizational structure and human resources; ☐ ☐
c. photos and/or videos of the office building, room layout, and adequate office building security facilities;
☐ ☐ d. documents showing readiness of information system technology; and ☐ ☐ e. evidence of office building control in the form of:
☐ ☐
1) ownership certificate (SHM/SHGB) if the building is owned;
☐ ☐
2) office building lease agreement or note of agreement on the use of the office building supported by:
☐ ☐ a) ownership proof from the lessor; b) lease payment receipts; and/or c) proof of lease tax payment, if obtained through lease.
☐ ☐
We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with the Financial Services Authority Regulation Number ... Year ... concerning Sharia Rural Financing Banks to be submitted to the Financial Services Authority in the context of applying for a license to open a Branch Office. (City), (date-month-year) (Signature above stamp is sufficient) (Full Name of BPRS Board of Directors)

II. APPROVAL/REJECTION OF BRANCH OFFICE OPENING LICENSE APPLICATION

In granting approval or rejection of a branch office opening license application, the Financial Services Authority conducts research on:
a. fulfillment of requirements, including:
1) assessment of the analysis of potential and feasibility of opening a Branch Office; and
2) analysis of evidence of operational readiness for opening a Branch Office; and
b. fulfillment of requirements by BPRS as in item I.
The Financial Services Authority may conduct inspections to ensure the operational readiness of the Branch Office to analyze the evidence of operational readiness for opening a Branch Office.
In the event that based on the results of research on the fulfillment of requirements there are:
a. key financial ratios or indicators that have the potential to lower financial performance; and/or b. violations of regulations related to BPRS, the application for a branch office opening license is declared rejected.

Part K
I. DOCUMENTS FOR APPLICATION FOR RELOCATION OF HEADQUARTERS AND/OR BRANCH OFFICE ADDRESS
An application to obtain approval for the relocation of the headquarters and/or Branch Office address is submitted to the Financial Services Authority, accompanied by documents including:
a. reasons for relocating the headquarters and/or Branch Office address; b. analysis of potential and feasibility of relocating the headquarters and/or Branch Office address, in the event that the relocation of the headquarters and/or Branch Office address impacts an increase in risk and changes in BPRS competitiveness;
c. evidence of settlement or transfer of debts and obligations of the headquarters and/or Branch Office;
d. evidence of operational readiness including facilities; and e. evidence of announcement of the plan to relocate the headquarters and/or Branch Office address on the announcement board at all BPRS offices concerned and in local daily newspapers, electronic mass media, and/or the BPRS website. The announcement board is placed in a place that is easily seen and read by the public. Local daily newspapers are newspapers that have circulation in the area where the BPRS is located. f. minutes of the General Meeting of Shareholders (RUPS) regarding approval of the relocation of the headquarters address and the deed of amendment to the Articles of Association that has been approved by the competent authority (specifically for relocation of the headquarters address).
II. DOCUMENT CHECKLIST FOR APPLICATION FOR RELOCATION OF HEADQUARTERS AND/OR BRANCH OFFICE ADDRESS
No. Description Completeness
Yes No Remarks

Reasons for relocating the headquarters and/or Branch Office address;
☐ ☐
Analysis of potential and feasibility of relocating the headquarters and/or Branch Office address as referred to in Appendix Part B Subpart B.2., in the event that the relocation of the headquarters and/or Branch Office address impacts an increase in risk and changes in BPRS competitiveness;
☐ ☐
Evidence of settlement or transfer of debts and obligations of the headquarters and/or Branch Office;
☐ ☐
Evidence of operational readiness including facilities which includes:
☐ ☐ a. list of fixed assets and inventory;
☐ ☐ b. photos and/or videos of the office building, room layout, ☐ ☐ and adequate office building security facilities;
c. evidence of office building control in the form of:
☐ ☐
1) ownership certificate (SHM/SHGB) if the building is owned;
☐ ☐
2) office building lease agreement or note of agreement on the use of the office building supported by:
☐ ☐ a) ownership proof from the lessor;
☐ ☐ b) lease payment receipts; and/or
☐ ☐ c) proof of lease tax payment, if obtained through lease; and ☐ ☐ d. evidence of announcement of the plan to relocate the headquarters and/or Branch Office address.
☐ ☐
Deed of amendment to the Articles of Association that has been approved by the competent authority (relocation of headquarters address)
☐ ☐
We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with the Financial Services Authority Regulation Number ... Year ... concerning Sharia Rural Financing Banks to be submitted to the Financial Services Authority in the context of applying for relocation of the headquarters and/or Branch Office address. (City), (date-month-year) (Signature above stamp is sufficient) (Full Name of BPRS Board of Directors)
III. APPROVAL OR REJECTION OF APPLICATION FOR RELOCATION OF HEADQUARTERS AND/OR BRANCH OFFICE ADDRESS
In granting approval or rejection of the relocation of the headquarters and/or branch office address, the Financial Services Authority conducts research on the completeness of requirement documents including:
a. Assessment of the analysis of potential and feasibility of relocating the office address, in the event that the relocation of the headquarters and/or Branch Office address impacts an increase in risk and changes in BPRS competitiveness; b. assessment of the settlement or transfer of debts and obligations of the headquarters and/or Branch Office; and
c. analysis and research on evidence of operational readiness including facilities; and
d. minutes of the General Meeting of Shareholders (RUPS) regarding approval of the relocation of the headquarters address and the deed of amendment to the Articles of Association that has been approved by the competent authority (relocation of headquarters address).

Part L
I. DOCUMENT REQUIREMENTS FOR APPLICATION FOR LICENSE TO INCREASE OFFICE STATUS
A. BPRS applying for a license to increase the status of a Cash Office to a Branch Office to the Financial Services Authority is accompanied by requirement documents, including:
1. document on the analysis of considerations for increasing office status including:
a. financial projections for the Branch Office for the next 12 (twelve) months, including plans for fund gathering and financing disbursement; and b. products and services provided, including promotion strategies and approaches to the target market, and
2. evidence of operational readiness of the Branch Office.
B. In order to grant approval or rejection, the Financial Services Authority conducts research on:
1. fulfillment of requirements including:
a. analysis of considerations for increasing the status of a Cash Office to a Branch Office; and b. analysis of evidence of operational readiness.
2. fulfillment of requirements for the application for a license to increase the status of a Cash Office to a Branch Office.
In analyzing the evidence of operational readiness for increasing the status of a Cash Office to a Branch Office, the Financial Services Authority may conduct inspections to ensure the operational readiness of the Branch Office. In the event that based on the results of research on the requirements there are:
1. key financial ratios or indicators that have the potential to lower financial performance; and/or
2. violations of regulations related to BPRS,
the application for a license to increase the status of a Cash Office to a Branch Office is rejected.
II. DOCUMENT CHECKLIST FOR APPLICATION FOR LICENSE TO INCREASE OFFICE STATUS
No. Description Completeness
Yes No Remarks
1. Document on the analysis of considerations for increasing office status including:
☐ ☐ a. financial projections for the Branch Office for the next 12 (twelve) months, including plans for fund gathering and financing disbursement; and ☐ ☐ b. products and services provided, including promotion strategies and approaches to the target market. ☐ ☐
2. Evidence of operational readiness of the Branch Office, including:
☐ ☐ a. list of fixed assets and inventory; ☐ ☐ b. organizational structure and human resources; ☐ ☐
c. photos and/or videos of the office building, room layout, and adequate office building security facilities;
☐ ☐ d. documents showing readiness of information system technology; and ☐ ☐ e. evidence of office building control in the form of:
☐ ☐
1) ownership certificate (SHM/SHGB) if the building is owned;
☐ ☐
2) office building lease agreement or note of agreement on the use of the office building supported by:
☐ ☐ a) ownership proof from the lessor; b) lease payment receipts; and/or c) proof of lease tax payment, if obtained through lease.
☐ ☐
We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with the Financial Services Authority Regulation Number ... Year ... concerning Sharia Rural Financing Banks to be submitted to the Financial Services Authority in the context of applying for an increase in office network status from a Cash Office to a Branch Office. (City), (date-month-year) (Signature above stamp is sufficient) (Full Name of BPRS Board of Directors)

Part M
I. DOCUMENTS FOR APPLICATION FOR LICENSE TO DECREASE OFFICE NETWORK STATUS
BPRS submits an application for a plan to decrease the status of a Branch Office to a Cash Office to the Financial Services Authority accompanied by requirement documents including:
a. reasons for decreasing office status; b. evidence of settlement or transfer of Branch Office debts to customers and other parties; and
c. evidence of operational readiness of the Cash Office.
Settlement of debts includes the management of financing accounts and financing documents or administration.
Settlement of debts to customers and other parties can be done, among others, by transferring debts to other BPRS Office Networks with the approval of customers or other parties.
II. DOCUMENT CHECKLIST FOR APPLICATION FOR LICENSE TO DECREASE OFFICE NETWORK STATUS
No. Description Completeness
Yes No Remarks

Reasons for decreasing office status; ☐ ☐
Evidence of settlement or transfer of Branch Office debts to customers and other parties;
☐ ☐
Evidence of operational readiness of the Cash Office, in the form of:
☐ ☐ a. list of fixed assets and inventory;
☐ ☐ b. organizational structure and human resources; ☐ ☐
c. photos and/or videos of the office building, room layout, and adequate office building security facilities;
and/or
☐ ☐ d. evidence of office building control in the form of:
☐ ☐
1) ownership certificate (SHM/SHGB) if the building is owned;
☐ ☐
2) office building lease agreement or note of agreement on the use of the office building supported by:
☐ ☐ a) ownership proof from the lessor;
☐ ☐ b) lease payment receipts; and/or
☐ ☐ c) proof of lease tax payment,
☐ ☐ if obtained through lease.
We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with the Financial Services Authority Regulation Number ... Year ... concerning Sharia Rural Financing Banks to be submitted to the Financial Services Authority in the context of applying for a license to decrease office network status. (City), (date-month-year) (Signature above stamp is sufficient) (Full Name of BPRS Board of Directors)

Part N
I. DOCUMENT REQUIREMENTS FOR APPLICATION FOR APPROVAL TO CLOSE A BRANCH OFFICE
In applying for a license to close a Branch Office to the Financial Services Authority, the submission must be accompanied by requirement documents, including:
1. reasons for closing the Branch Office;
2. evidence of announcement of the plan to close the Branch Office on the announcement board at all BPRS offices concerned and in local daily newspapers, electronic mass media, and/or the BPRS website;
3. evidence of settlement of all obligations to customers and other parties related to the closure of the Branch Office at least in the form of documents proving the settlement of obligations to customers or the transfer of Branch Office customer administration to another Branch Office or another bank with the approval of the customer.
The settlement of all obligations to customers and other parties can be done, among others, by transferring all obligations to other offices of that BPRS or other parties with the approval of customers or other parties. Documents proving the settlement of all obligations to customers are in the form of a Branch Office balance sheet showing that all obligations of the Branch Office to customers and other parties have been settled. evidence of settlement of all assets, can be in the form of proof of sale, liquidation, or transfer of assets from the closed Branch Office. For BPRS Branch Offices that conduct foreign currency exchange business, evidence of settlement of all assets includes the settlement of foreign currency assets;
4. projection of the Branch Office's financial position report showing that all obligations of the Branch Office to customers and other parties have been settled; and
5. a statement letter from all members of the BPRS Board of Directors that:
a. BPRS has settled all its obligations to customers and other parties related to the closure of the BPRS Branch Office and if there are claims in the future, it becomes the responsibility of BPRS; and b. BPRS has settled all assets including foreign currency assets in the event that the Branch Office conducts foreign currency exchange business.
II. DOCUMENT CHECKLIST FOR APPLICATION FOR APPROVAL TO CLOSE A BRANCH OFFICE
No. Description Completeness
Yes No Remarks
1. Reasons for closing the Branch Office; ☐ ☐
2. Evidence of announcement of the plan to close the Branch Office;
☐ ☐
3. Evidence of settlement of all obligations to customers and other parties related to the closure of the Branch Office at least in the form of documents proving the settlement of obligations to customers or the transfer of Branch Office customer administration to another Branch Office or another bank with the approval of the customer;
☐ ☐
4. Evidence of settlement of all assets, including foreign currency assets in the event that the Branch Office conducts foreign currency exchange business;
☐ ☐
5. Projection of the Branch Office's financial position report showing that all obligations of the Branch Office to customers and other parties have been settled; and
☐ ☐
6. Statement letter from all members of the BPRS Board of Directors that:
☐ ☐ a. BPRS has settled all its obligations to customers and other parties related to the closure of the BPRS Branch Office and if there are claims in the future, it becomes the responsibility of BPRS; and ☐ ☐ b. BPRS has settled all assets including foreign currency assets in the event that the Branch Office conducts foreign currency exchange business. ☐ ☐ We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with the Financial Services Authority Regulation Number ... Year ... concerning Sharia Rural Financing Banks to be submitted to the Financial Services Authority in the context of applying for approval to close a Branch Office. (City), (date-month-year) (Signature above stamp is sufficient) (Full Name of BPRS Board of Directors)

Part O
I. DOCUMENTS FOR REPORT ON RELOCATION OF OFFICE NETWORK DUE TO FORCE MAJEURE
BPRS must submit a report on the relocation of the Office Network due to force majeure to the Financial Services Authority, accompanied by requirement documents including:
1. evidence of settlement or transfer of debts and obligations of the headquarters and/or Branch Office;
2. copy of the deed of amendment to the Articles of Association that has been approved by the competent authority, in the event that the relocation of the headquarters address is carried out;
3. evidence of readiness of the headquarters and/or Branch Office including facilities; and
4. evidence of announcement on the announcement board at all BPRS offices concerned, local daily newspapers, electronic mass media, and/or the BPRS website.
II. DOCUMENT CHECKLIST FOR REPORT ON RELOCATION OF OFFICE NETWORK ADDRESS DUE TO FORCE MAJEURE
No. Description Completeness
Yes No Remarks
1. Evidence of settlement or transfer of debts and obligations of the headquarters and/or Branch Office;
☐ ☐
2. Copy of the deed of amendment to the Articles of Association that has been approved by the competent authority, in the event that the relocation of the headquarters address is carried out;
☐ ☐
3. Evidence of operational readiness including facilities which includes:
a. list of fixed assets and inventory;
☐ ☐ b. photos and/or videos of the office building, room layout, and adequate office building security facilities; ☐ ☐
c. evidence of office building control in the form of:
☐ ☐
1) ownership certificate (SHM/SHGB) if the building is owned;
☐ ☐
2) office building lease agreement or note of agreement on the use of the office building supported by:
a) ownership proof from the lessor;
☐ ☐ b) lease payment receipts; and/or c) proof of lease tax payment, if obtained through lease.
4. Evidence of announcement of the relocation of the Office Network address to the public on the announcement board at all BPRS offices concerned, local daily newspapers, electronic mass media, and/or the BPRS website
☐ ☐
We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with the Financial Services Authority Regulation Number ... Year ... concerning Sharia Rural Financing Banks to be submitted to the Financial Services Authority in the context of reporting the relocation of the headquarters/Branch Office address due to force majeure. (City), (date-month-year) (Signature above stamp is sufficient) (Full Name of BPRS Board of Directors)

Part P
I. DOCUMENTS FOR APPLICATION FOR REAFFIRMATION OF BPRS BUSINESS LICENSE WITH NEW NAME
BPRS submits an application accompanied by requirement documents including:
1. reasons for name change;
2. copy of the deed of amendment to the Articles of Association;
3. evidence of approval for the amendment to the Articles of Association from the competent authority;
4. documents, forms, and instruments used by BPRS with the new name;
5. evidence of announcement on the announcement board at all BPRS offices and local daily newspapers, electronic mass media, and/or the BPRS website; and
6. minutes of the destruction of unused deposit receipts, savings books, forms, and instruments of BPRS with the old name.
II. DOCUMENT CHECKLIST FOR APPLICATION FOR REAFFIRMATION OF BPRS BUSINESS LICENSE WITH NEW NAME
No. Document Completeness
Yes No Remarks
1. Reasons for name change; ☐ ☐
2. Copy of the deed of amendment to the Articles of Association;
☐ ☐
3. Evidence of approval for the amendment to the Articles of Association from the competent authority;
☐ ☐
4. Documents, forms, and instruments used by BPRS with the new name;
☐ ☐
5. Evidence of announcement of name change to the public; and
☐ ☐
6. Minutes of the destruction of unused deposit receipts, savings books, forms, and instruments of BPRS with the old name.
☐ ☐
We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with the Financial Services Authority Regulation Number ... Year ... concerning Sharia Rural Financing Banks to be submitted to the Financial Services Authority in the context of applying for reaffirmation of the use of the BPRS business license with the new name. (City), (date-month-year) (Signature above stamp is sufficient) (Full Name of BPRS Board of Directors)

Part Q
I. SHARIA SUPERVISORY BOARD REQUIREMENTS LIST
The requirements for the Sharia Supervisory Board at BPRS are as follows:
1. Integrity, which at least includes:
a. Having good character and morals. b. Having a commitment to comply with Sharia banking regulations and legislation.
c. Having a high commitment to the development of a healthy BPRS operation. The meaning of "having a commitment" includes, among others, willingness to provide sufficient time to BPRS in order to carry out its duties effectively.
d. Not being included in the DTL (List of Persons with Problematic Integrity) in accordance with Financial Services Authority Regulations regarding re-evaluation for key parties of financial service institutions. e. Not undergoing legal processes due to indications of integrity, financial feasibility/reputation, and/or competence problems at a Financial Service Institution (LJK).
2. Competence, which at least has knowledge and experience in Sharia mu'amalah and knowledge in the field of banking and/or finance in general. Sharia mu'amalah refers to social relations, including business activities, that are in line with or based on Sharia Principles; and
3. Financial reputation, which at least includes:
a. Not being included in the list of non-performing loans. The meaning of "list of non-performing loans" is the list of non-performing loans as regulated in provisions governing the Credit Information System. b. Never declared bankrupt or become a shareholder, member of the Board of Directors, or member of the Board of Commissioners who is declared guilty causing a company to be declared bankrupt, within the last 5 (five) years before nomination.
c. Not being a controller, member of the Board of Commissioners, or member of the Board of Directors of a legal entity that has non-performing loans and/or financing.
II. DOCUMENTS FOR REPORT ON APPOINTMENT, CHANGE, AND/OR DISMISSAL OF EXECUTIVE OFFICIALS
BPRS reports every appointment, change, and/or dismissal of Executive Officials accompanied by supporting documents, at least including:
a. photocopy of appointment letter, employment agreement, or dismissal letter; b. photocopy of a valid Identity Card (KTP);
c. curriculum vitae;
d. recent 4x6 cm passport photo; and
III. DOCUMENT CHECKLIST FOR REPORT ON APPOINTMENT, CHANGE, AND/OR DISMISSAL OF EXECUTIVE OFFICIALS
No. Document Completeness
Yes No Remarks
1. Photocopy of appointment letter, employment agreement, or dismissal letter
☐ ☐
2. Photocopy of a valid Identity Card (KTP);
☐ ☐
3. Curriculum vitae; and ☐ ☐
4. Recent 4x6 cm passport photo ☐ ☐

Part R
I. APPLICATION DOCUMENTS FOR APPROVAL OF PREPARATION FOR REVOCATION OF BUSINESS LICENSE AT THE REQUEST OF SHAREHOLDERS
The BPRS submits an application for approval of the preparation for revocation of the business license accompanied by documents including:
a. minutes of the General Meeting of Shareholders (RUPS) containing at least:
1. the plan to revoke the business license at the request of the BPRS shareholder, including the decision approving the dissolution of the BPRS legal entity;
2. an order to the Board of Directors to settle all BPRS obligations; and
3. commitment to place escrow funds to settle BPRS obligations.
b. reasons for revoking the business license at the request of the BPRS shareholder;
c. a plan to settle all BPRS obligations to customers, creditors, employees, and other parties, accompanied by:
1. projections of BPRS asset cash inflows for the next 6 (six) months; and
2. proof of escrow fund placement in the form of a deposit at a general bank in Indonesia, by stating the name as "Commissioners of the Financial Services Authority q.q. name of shareholder and/or BPRS PSP", and stating that the withdrawal can only be done after obtaining approval from the Financial Services Authority;
Other parties include parties who cooperate or have agreements with the BPRS and have claims against the BPRS. The amount of funds placed in escrow is at least equal to the difference between the amount of assets and the amount of obligations, taking into account cash flow projections for the shortest period during the 6 (six) month period; d. the latest financial report, accompanied by projections of the BPRS financial report calculated from the last period of the report at the time of submitting the application until the projected position report date of closure; and e. proof of tax settlement and other obligations to the state. What is meant by "other obligations to the state" includes, among others, levies of the Financial Services Authority, premiums of the Deposit Insurance Corporation, or other obligations such as administrative sanctions in the form of fines to either the Financial Services Authority or the Deposit Insurance Corporation.

II. CHECKLIST OF APPLICATION DOCUMENTS FOR APPROVAL OF PREPARATION FOR REVOCATION OF BUSINESS LICENSE AT THE REQUEST OF SHAREHOLDERS
No. Document Completeness
Yes No Remarks

Minutes of the RUPS containing at least:
☐ ☐ a. plan to revoke the business license at the request of the BPRS shareholder, including the decision approving the dissolution of the BPRS legal entity; ☐ ☐ b. order to the Board of Directors to settle all BPRS obligations; and ☐ ☐
c. commitment to place escrow funds to settle BPRS obligations.
☐ ☐
Reasons for revoking the business license at the request of the BPRS shareholder.
☐ ☐
Plan to settle all BPRS obligations to customers, creditors, employees, and other parties, accompanied by:
☐ ☐ a. BPRS cash flow projections for the shortest period of 6 (six) months ahead; and ☐ ☐ b. proof of escrow fund placement in the form of a deposit at a general bank in Indonesia, by stating the name as "Commissioners of the Financial Services Authority q.q. name of shareholder and/or BPRS PSP", and stating that the withdrawal can only be done after obtaining approval from the Financial Services Authority.
Latest financial report, accompanied by projections of the BPRS financial report calculated from the last period of the report at the time of submitting the application until the projected position report date of closure.
☐ ☐
Proof of tax settlement and other obligations to the state.
☐ ☐
Remarks:
What is meant by "other obligations to the state" includes, among others, levies of the Financial Services Authority, premiums of the Deposit Insurance Corporation, or other obligations such as administrative sanctions in the form of fines to either the Financial Services Authority or the Deposit Insurance Corporation. We, the undersigned below, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with the Financial Services Authority Regulation Number ... Year ... concerning Syariah Rural Financing Banks to be submitted to the Financial Services Authority in the context of applying for approval of the preparation for revocation of the business license at the request of shareholders.

(City), (date-month-year)
(Signature above stamp duty is sufficient)
(Full Name of BPRS Board of Directors)

Part S
I. APPLICATION DOCUMENTS FOR DECISION TO REVOKE BPRS BUSINESS LICENSE
The BPRS submits an application for the decision to revoke the BPRS business license to the Financial Services Authority accompanied by requirement documents including:
a. report and proof of implementation of the cessation of BPRS business activities; b. proof of announcement regarding the plan to dissolve the legal entity and the plan to settle BPRS obligations;
c. report and proof of implementation of the settlement of BPRS obligations;
d. report of the audit results of a public accounting firm on the final position financial report; e. final position financial report of the BPRS which includes the report of the verification results from the public accounting firm on the settlement of BPRS obligations; and f. a statement letter from the BPRS shareholder containing a statement that all BPRS obligations have been settled and if there are obligations and/or claims in the future, they become the responsibility of the shareholder.

II. CHECKLIST OF APPLICATION DOCUMENTS FOR DECISION TO REVOKE BPRS BUSINESS LICENSE
No. Document Completeness
Yes No Remarks

Report and proof of implementation of the cessation of BPRS business activities;
☐ ☐
Proof of announcement regarding the plan to dissolve the legal entity and the plan to settle BPRS obligations;
☐ ☐
Report and proof of implementation of the settlement of BPRS obligations, such as settlement of BPRS obligations to customers, employees and other parties, settlement of taxes and other obligations to the state;
☐ ☐
Report of the audit results of a public accounting firm on the final position financial report of the BPRS;
☐ ☐
Final position financial report of the BPRS; and
☐ ☐
Notarized statement letter from the BPRS shareholder stating that all BPRS obligations have been settled and in the event of future claims, they become the responsibility of the shareholder.
☐ ☐
We, the undersigned below, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with the Financial Services Authority Regulation Number ... Year ... concerning Syariah Rural Financing Banks to be submitted to the Financial Services Authority in the context of applying for the decision to revoke the business license.

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

(City), (date-month-year)
(Signature above stamp duty is sufficient)
(Full Name of BPRS Board of Directors)

CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

Lineage: No known changes

Similar documents from other regulators