FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 26 /POJK.04/2017

ON

INFORMATION DISCLOSURE FOR ISSUERS OR PUBLIC COMPANIES

SUBJECT TO BANKRUPTCY PETITIONS

BY THE GRACE OF GOD THE ALMIGHTY

THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that with the enactment of Law Number 21 of 2011 concerning the Financial Services Authority, as of December 31, 2012, the functions, duties, and authority for regulating and supervising financial services activities in the capital market sector, including regulations regarding information disclosure for issuers or public companies subject to bankruptcy petitions, have shifted from the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority;

b. that to provide clarity and certainty regarding regulations on information disclosure for issuers or public companies subject to bankruptcy petitions, existing capital market sector regulations on information disclosure for issuers or public companies subject to bankruptcy petitions issued prior to the establishment of the Financial Services Authority need to be converted into a Financial Services Authority Regulation;

c. that based on the considerations referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation on Information Disclosure for Issuers or Public Companies Subject to Bankruptcy Petitions;

Recalling:

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

DECIDING:
Establishing: A FINANCIAL SERVICES AUTHORITY REGULATION ON INFORMATION DISCLOSURE FOR ISSUERS OR PUBLIC COMPANIES SUBJECT TO BANKRUPTCY PETITIONS.

CHAPTER I

GENERAL PROVISIONS

Article 1

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

1. Issuer is a party that conducts a Public Offering.
2. Public Company is a corporation whose shares are owned by at least 300 (three hundred) shareholders and has paid-up capital of at least Rp3,000,000,000.00 (three billion rupiah) or a number of shareholders and paid-up capital determined by Government Regulation.
3. Securities are negotiable instruments, namely debt acknowledgment instruments, commercial paper, shares, bonds, debt certificates, participation units of collective investment contracts, futures contracts over Securities, and any derivatives of Securities.
4. Stock Exchange is a party that organizes and provides systems and/or facilities to match buy and sell offers of Securities from other parties with the aim of trading Securities among them.
5. Public Offering is the activity of offering Securities conducted by the Issuer to sell Securities to the public based on procedures regulated in Law Number 8 of 1995 concerning the Capital Market and its implementing regulations.

Article 2

An Issuer or Public Company that fails or is unable to avoid failure to pay its obligations to unaffiliated lenders must submit a report regarding this matter to the Financial Services Authority and the Stock Exchange where the Issuer's or Public Company's Securities are listed, as soon as possible, at the latest 2 (two) working days after the Issuer or Public Company experiences failure or becomes aware of the inability to avoid such failure.

Article 3

In the event that an Issuer or Public Company is brought to court to be subject to a bankruptcy petition, the Issuer or Public Company must submit a report regarding this matter to the Financial Services Authority and the Stock Exchange where the Issuer's or Public Company's Securities are listed, as soon as possible, at the latest 2 (two) working days after the Issuer or Public Company becomes aware of the bankruptcy petition.

Article 4

The party as referred to in Article 85 of Law Number 8 of 1995 concerning the Capital Market who files a bankruptcy petition against an Issuer or Public Company must submit a report to the Financial Services Authority and the Stock Exchange where the Issuer's or Public Company's Securities are listed regarding this matter, as soon as possible, at the latest 2 (two) working days after the filing of the bankruptcy petition.

Article 5

The Stock Exchange must announce the information as referred to in Article 2, Article 3, and Article 4 received by the Stock Exchange, at the Stock Exchange on the same day the information is received.

CHAPTER II

SANCTION PROVISIONS

Article 6

(1) Without prejudice to criminal provisions in the capital market sector, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including the party causing the violation, in the form of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and/or g. cancellation of registration.

(2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, e, f, or g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a.

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

Article 7

In addition to administrative sanctions as referred to in Article 6 paragraph (1), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 8

The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 6 paragraph (1) and specific actions as referred to in Article 7 to the public.

CHAPTER III

CLOSING PROVISIONS

Article 9

Upon the commencement of this Financial Services Authority Regulation, the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-46/PM/1998 concerning Information Disclosure for Issuers or Public Companies Subject to Bankruptcy Petitions, along with Regulation Number X.K.5 which is its appendix, is revoked and declared invalid.

Article 10

This Financial Services Authority Regulation comes into force on the date of its enactment.

This copy is in accordance with the original.
Director of Law 1
Legal Department signed
Yuliana

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

Established in Jakarta on June 21, 2017
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD

Enacted in Jakarta on June 22, 2017
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 126

EXPLANATION

OF

FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 26 /POJK.04/2017

ON

INFORMATION DISCLOSURE FOR ISSUERS OR PUBLIC COMPANIES

SUBJECT TO BANKRUPTCY PETITIONS

I. GENERAL

Since December 31, 2012, the functions, duties, and authority for regulating and supervising financial services activities in the capital market, insurance, pension funds, financing institutions, and other financial service institutions have shifted from the Minister of Finance and the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority.

In relation to the above, it is necessary to reorganize the existing regulatory structure, particularly those related to the capital market sector, by converting Capital Market Supervisory Agency regulations related to the capital market sector into Financial Services Authority Regulations. This reorganization is carried out so that there are Financial Services Authority Regulations related to the capital market sector that are consistent with Financial Services Authority Regulations in other sectors.

Based on the background and aspects mentioned above, it is necessary to replace the existing capital market sector regulations governing information disclosure for Issuers or Public Companies subject to bankruptcy petitions, namely the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-46/PM/1998 concerning Information Disclosure for Issuers or Public Companies Subject to Bankruptcy Petitions, along with Regulation Number X.K.5 which is its appendix, into a Financial Services Authority Regulation on Information Disclosure for Issuers or Public Companies Subject to Bankruptcy Petitions.

II. ARTICLE BY ARTICLE

Article 1

Clearly stated.

Article 2

The term "lender" refers to creditors as referred to in Law Number 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations.

The information contained in the report submitted to the Financial Services Authority and the Stock Exchange includes among others details regarding loans, including:
a. principal and interest amounts; b. loan term;
c. name of the lender;
d. use of the loan; and e. reasons for failure or inability to avoid failure.

Article 3

The term "becomes aware" includes, among others, receipt of a court summons by the Issuer or Public Company.

The information contained in the report submitted to the Financial Services Authority and the Stock Exchange includes among others:
a. name of the lender filing for bankruptcy; b. summary of the bankruptcy petition; and
c. amount of other loans.

Article 4

Clearly stated.

Article 5

Clearly stated.

Article 6

Clearly stated.

Article 7

The term "specific actions" includes, among others, postponement of the issuance of an effectiveness statement for registration statements in the context of a Public Offering.

Article 8

Clearly stated.

Article 9

Clearly stated.

Article 10

Clearly stated.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6073