Financial Services Authority Regulation Number 27 of 2023 Concerning the Management of Pension Fund Business

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 27 OF 2023
CONCERNING
THE MANAGEMENT OF PENSION FUND BUSINESS
BY THE GRACE OF GOD THE ALMIGHTY,
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that in order to implement the provisions of Article 138 paragraph (7), Article 148 paragraph (3), Article 149 paragraph (5), Article 150 paragraph (7), Article 151 paragraph (2), Article 152 paragraph (2), Article 153 paragraph (6), Article 154 paragraph (5), Article 155 paragraph (5), Article 157 paragraph (3), Article 160 paragraph (5), Article 162 paragraph (5), Article 163 paragraph (3), Article 164 paragraph (3), Article 166 paragraph (4), Article 168 paragraph (7), Article 169 paragraph (6), Article 170 paragraph (4), and Article 190 paragraph (9) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, it is necessary to establish a Financial Services Authority Regulation concerning the Management of Pension Fund Business; b. that the Financial Services Authority Regulation Number 3/POJK.05/2015 concerning Pension Fund Investments as amended by the Financial Services Authority Regulation Number 29/POJK.05/2018 concerning Amendments to the Financial Services Authority Regulation Number 3/POJK.05/2015 concerning Pension Fund Investments, the Financial Services Authority Regulation Number 5/POJK.05/2017 concerning Contributions, Pension Benefits, and Other Benefits Managed by Pension Funds as amended by the Financial Services Authority Regulation Number 60/POJK.05/2020 concerning Amendments to the Financial Services Authority Regulation Number 5/POJK.05/2017 concerning Contributions, Pension Benefits, and Other Benefits Managed by Pension Funds, and the Financial Services Authority Regulation Number 8/POJK.05/2018 concerning Pension Fund Financing, need to be adjusted to the provisions in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector and the development of the pension fund industry in Indonesia, thus requiring improvements to the provisions;

c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning the Management of Pension Fund Business;
Recalling: 1. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
2. Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE MANAGEMENT OF PENSION FUND BUSINESS.

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

Pension Fund is a legal entity that manages and runs a program promising pension benefits.
Employer Pension Fund, hereinafter abbreviated as DPPK, is a Pension Fund established by the founder for the benefit of some or all of its employees as participants, and which creates obligations towards the employer.
Financial Institution Pension Fund, hereinafter abbreviated as DPLK, is a Pension Fund established by a specific financial services institution, as the founder, which is intended for employees included by their employer and/or individuals independently.
Pension Benefit is the benefit received by participants either periodically and/or lump sum as retirement income linked to retirement age, length of service, and/or length of contribution.
Pension Fund Regulation, hereinafter abbreviated as PDP, is a regulation containing provisions that serve as the basis for the management of the pension program for a Pension Fund.
Pension Program is any program that seeks to provide Pension Benefits to participants.
Defined Contribution Pension Program, hereinafter abbreviated as PPIP, is a Pension Program where the contribution amount is set in the PDP and all contributions and their development results are credited to each participant's account as Pension Benefits.
Defined Benefit Pension Program, hereinafter abbreviated as PPMP, is a Pension Program where the benefits are set in the PDP or any other Pension Program that is not a PPIP.
Participant is an individual who meets the requirements to join the Pension Program.
Normal Retirement Age is the normal age when a Participant is entitled to receive Pension Benefits.
Disability is a physical, intellectual, mental, and/or sensory limitation that causes a person to no longer be able to perform work that provides income reasonably obtainable according to their education, expertise, skills, and experience.
Early Retirement Benefit is a Pension Benefit paid when a Participant stops working at a certain age before the Normal Retirement Age.
Disability Benefit is a Pension Benefit that starts being paid when a Participant stops working due to Disability.
Deferred Pension is the right to Pension Benefits for a Participant who stops working before reaching the Normal Retirement Age, with payment deferred until the earliest at the time the Participant reaches a certain age before the Normal Retirement Age.
Other Benefit Program is a program that manages or provides other Pension Benefits and/or other benefits managed by the Pension Fund, including those managing Pension Programs based on Sharia principles.
Defined Benefit Other Benefit Program, hereinafter abbreviated as PMLMP, is an Other Benefit Program where the benefits are set in the PDP or an Other Benefit Program that is not a defined contribution other benefit program.
Defined Contribution Other Benefit Program, hereinafter abbreviated as PMLIP, is an Other Benefit Program where the contribution amount is set in the PDP and all contributions and their development results are credited to each Participant's account as other benefits.
Founder is a legal entity that establishes a DPPK and/or DPLK.
Board of Trustees is the Pension Fund organ authorized and fully responsible for the management of the Pension Fund for the benefit of the Pension Fund, in accordance with the purpose and objectives of the Pension Fund, and representing the Pension Fund inside and outside of court.
Board of Supervisors is the Pension Fund organ tasked with giving advice and suggestions and conducting supervision over the management of the Pension Fund to the Board of Trustees.
Sharia Supervisory Board is a part of the Pension Fund organ tasked with giving advice and suggestions and conducting supervision over the implementation of Pension Fund activities to ensure compliance with Sharia principles.
Sharia Principles are Islamic legal principles based on fatwas and/or Sharia compliance statements issued by institutions having authority in setting fatwas in the Sharia field.
Investment Directive is the investment policy and strategy set by the Founder or the Founder and Board of Supervisors, which must serve as a guideline for the Board of Trustees in carrying out investments.
Any Person is an individual, corporation, or business entity in the form of a legal entity or non-legal entity, or other bodies.
Employer is Any Person who employs labor by paying wages, salaries, or other forms of compensation.
Founder's Partner is an Employer that includes some or all of its employees in the Pension Program managed by a DPPK.
Assets for Financing is the Pension Fund's assets calculated to determine the funding quality of the Pension Fund.
Solvency Liability is the Pension Fund's obligation calculated based on the assumption that the Pension Fund is dissolved on the actuarial valuation date.
Actuarial Present Value is the Pension Fund's obligation calculated based on the assumption that the Pension Fund continues to exist until all obligations to Participants and entitled parties are fulfilled.
Present Value is the value on a specific date of a payment or series of payments to be made after that date, calculated by actuarially discounting the payment or series of payments based on assumed interest rates and specific probabilities of occurrence of the payment or series of payments.
Lump Sum Value is the value on a specific date to pay Pension Benefits in a lump sum according to the table contained in the actuarial report.
Basic Pension Income is part or all of the employee's income received from the Employer and set in the PDP of a DPPK as the basis for calculating the amount of contributions and/or Participant Pension Benefits.
Participant's Widow/Widower, hereinafter referred to as Widow/Widower, is the legal wife/husband of a Participant or pensioner who has died, who has been registered with the Pension Fund.
Entitled Party is the party having rights to Pension Benefits in the event of a Participant's death, namely the Widow/Widower, children, or parties designated by the Participant if the Participant has no Widow/Widower or children.
Monthly Formula is the method of calculating the size of Pension Benefits per month to be received by the Participant.
Lump Sum Formula is the method of calculating the size of Pension Benefits to be received by the Participant in the form of Lump Sum Value, which will subsequently be converted into Pension Benefits per month.
Surplus is the excess of Assets for Financing over the Actuarial Present Value.
Deficit is the shortage of Assets for Financing compared to the Actuarial Present Value.
Solvency Shortage is the shortage of Assets for Financing compared to Solvency Liability.
Funding Ratio is the result of dividing Assets for Financing by the Actuarial Present Value.
Solvency Ratio is the result of dividing Assets for Financing by Solvency Liability.
Fully Funded is a condition where assets calculated to finance all Pension Benefits are not less than the obligation for the payment of all Pension Benefits to Participants for Pension Funds managing PPMP, or a condition where the monthly due contributions have been deposited for Pension Funds managing PPIP.
Minimum Contribution is the contribution mandatory to be deposited into a DPPK for financing the Pension Program.
Participant Voluntary Contribution is an additional contribution originating from Pension Fund Participants to increase Pension Benefits.
Normal Contribution is the contribution required in one year to finance part of the Present Value of Pension Benefits allocated to the relevant year, calculated based on the larger amount between the Participant contribution amount set in the PDP and the part of the Present Value of Pension Benefits allocated to the relevant year, according to the actuarial valuation method used.
Additional Contribution is the contribution deposited to settle a Deficit.
Actuary is an actuarial consultant who has obtained a registered certificate from the Financial Services Authority.
Actuarial Assumption is a collection of estimates regarding changes in the future, used to calculate the Present Value of a payment or series of payments in the future.
Actuarial Report is a report of actuarial valuation results prepared by an Actuary, which serves as the basis for calculating contributions, payment of Pension Benefits, other Pension Benefits, and/or other benefits.
Periodic Actuarial Report is an Actuarial Report submitted periodically to the Financial Services Authority, not for the approval of the establishment of a Pension Fund, changes to the PDP, or the dissolution of a Pension Fund.
Government Securities are securities issued by the Government of the Republic of Indonesia, including government debt instruments as referred to in laws concerning government debt and Sharia government securities as referred to in laws concerning Sharia government securities.
Mutual Fund is a vehicle used to gather funds from investors to be subsequently invested in a portfolio of securities by investment managers as referred to in laws concerning the capital market.
Medium Term Notes, hereinafter abbreviated as MTN, are debt instruments issued by companies with a maturity period of one to five years.
Repurchase Agreement, hereinafter referred to as REPO, is a transaction to sell securities with a promise to buy them back at a specified time and price.
Bank is a business entity that gathers funds from the public in the form of deposits and channels them to the public in the form of credit or financing and/or other forms to improve the people's standard of living as referred to in laws concerning banking.
Stock Exchange is a market organizer in the capital market for exchange transactions.
Investment Manager is a party whose business activities manage securities portfolios for clients or manage other investment portfolios for the benefit of a group of clients or individual clients, except insurance companies, Sharia insurance companies, Pension Funds, and Banks that conduct their own business activities based on legislation.
Custodian Bank is a commercial bank and Sharia commercial bank that has obtained approval from the Financial Services Authority as a custodian as referred to in legislation concerning the capital market.

Article 2
Types of Pension Funds consist of:
a. DPPK; and b. DPLK.

CHAPTER II
CONTRIBUTIONS
First Section
DPPK Managing PPMP
Paragraph 1
General
Article 3
Contributions in a DPPK managing a PPMP consist of:
a. Employer contributions and Participant contributions; or b. Employer contributions.

Article 4
Employer contributions as referred to in Article 3 must be set in the Actuarial Report submitted to the Financial Services Authority.

Paragraph 2
Minimum Contribution
Article 5
(1) A DPPK managing a PPMP must ensure that the funding condition remains in a Fully Funded state.
(2) In the event that the condition as referred to in paragraph (1) is not yet met, the Employer is responsible for ensuring that the DPPK managing the PPMP reaches a Fully Funded state directly or gradually.

Article 6
(1) The Employer is obligated to pay and deposit Minimum Contributions into the DPPK managing the PPMP, consisting of:
a. Normal Contributions; and b. Additional Contributions, in the event of a Deficit, according to the amount and time set in the Actuarial Statement.
(2) Additional Contributions as referred to in paragraph (1) letter b consist of:
a. Additional Contributions to settle past service Deficits calculated as Solvency Shortages; and/or b. Additional Contributions to settle past service Deficits other than those calculated as Solvency Shortages. (3) In the event that contributions for a DPPK managing a PPMP consist of Participant contributions and Employer contributions, the Employer is obligated to deposit all contributions to the Pension Fund. (4) For a DPPK managing a PPMP, the Employer is obligated to deposit all Participant contributions and Employer contributions as referred to in paragraph (3) no later than the 15th (fifteenth) day of the following month. (5) In the event that there are Participant contributions as referred to in Article 3 letter a, the Employer is the collector of Participant contributions based on the PDP, collected at least once every month. (6) For a DPPK managing a PPMP, Minimum Contributions as referred to in paragraph (1) that have not been deposited after passing 1 (one) month from the due date are declared:
a. as the Employer's debt that can be immediately collected and subject to a specific return rate equal to the return rate of the most profitable deposit at a government-owned commercial bank for the relevant Participant, calculated from the first day of the month as referred to in paragraph (4); and b. as a receivable of the DPPK managing the PPMP having primary rights, if the Employer is liquidated or declared bankrupt. (7) For a DPPK managing a PPMP based on Sharia Principles, Participant contributions and Employer contributions that have not been deposited after passing 1 (one) month from the due date are declared as the Employer's debt and subject to sanctions (ta'zir) in the form of fines calculated from the first day of the month of the contribution deposit due date. (8) Funds originating from sanctions (ta'zir) in the form of fines as referred to in paragraph (7) are not included in the Pension Fund's assets and can only be used for social interests.

Article 7
(1) The amount of Normal Contributions as referred to in Article 6 paragraph (1) letters a to the end of the first book year after the actuarial valuation date is set by:
a. based on nominal value; or b. based on a percentage of Basic Pension Income.
(2) The amount of Normal Contributions becoming the Employer's responsibility per month is set:
a. 1/12 (one twelfth) of the nominal value as referred to in paragraph (1) letter a; or b. the percentage as referred to in paragraph (1) letter b multiplied by the Basic Pension Income per month. (3) In the event that there are Normal Contributions becoming the Participant's responsibility per month, the amount of contributions is calculated based on the provisions in the PDP. (4) The amount of Normal Contributions to be paid for years after the first book year as referred to in paragraph (1) is calculated based on a percentage of Basic Pension Income as set in the Actuarial Statement.

Article 8
(1) Employer contributions set in the Periodic Actuarial Report or in the approval of PDP changes for a DPPK managing a PPMP are paid starting from the actuarial valuation date. (2) Employer contributions set in the Actuarial Report prepared for the approval of the establishment of a DPPK managing a PPMP are paid starting from the date of said approval. (3) Before the Actuarial Statement in the Periodic Actuarial Report is signed, Employer contributions to a DPPK managing a PPMP are paid in the amount of Employer contributions set in the previous Actuarial Statement. (4) Before the approval of PDP changes is granted, Employer contributions to a DPPK managing a PPMP are paid in the amount of Employer contributions set in the previous Actuarial Statement.

Article 9
(1) In the event that the amount of Employer contributions for a DPPK managing a PPMP based on a new Actuarial Statement is larger than the amount of Employer contributions set in the previous Actuarial Statement, the contribution shortfall must be settled no later than 12 (twelve) months from the actuarial valuation date or 3 (three) months from the date of PDP approval. (2) In the event that Employer contributions for a DPPK managing a PPMP are larger as referred to in paragraph (1) due to changes in technical interest rates and/or mortality rates, the settlement of the contribution shortfall can be extended for a maximum of 12 (twelve) months from the end of the time period as referred to in paragraph (1). (3) In the event that the contribution shortfall is not settled within the time limits as referred to in paragraph (1) and paragraph (2), the deposit of the contribution shortfall must be subject to reasonable interest or sanctions (ta'zir) in the form of fines equal to the return rate of the most profitable deposit at a government-owned commercial bank for the relevant Participant, calculated from the actuarial valuation date or the date of PDP approval. (4) For a DPPK managing a PPMP based on Sharia Principles, funds originating from sanctions (ta'zir) in the form of fines as referred to in paragraph (3) are not included in the assets of the DPPK managing a PPMP based on Sharia Principles and can only be used for social interests. (5) In the event that the amount of Employer contributions for a DPPK managing a PPMP based on a new Actuarial Statement is smaller than the amount of Employer contributions set in the previous Actuarial Statement, the contribution surplus must be calculated as the next Employer contributions.

Paragraph 3
Participant Voluntary Contributions
Article 10
(1) In the event that a Participant of a DPPK managing a PPMP wishes to increase the size of Pension Benefits to be obtained other than the Pension Benefits promised according to the formula in the PDP, the Participant can add contributions in the form of Participant Voluntary Contributions. (2) The addition of contributions in the form of Participant Voluntary Contributions as referred to in paragraph (1) must first be regulated in the PDP. (3) Participant Voluntary Contributions as referred to in paragraph (1) are based on a written statement from the Participant containing willingness to pay Participant Voluntary Contributions.

Article 11
In the event that there are Participant Voluntary Contributions as referred to in Article 10 paragraph (1), the Employer:
a. is the collector of Participant Voluntary Contributions; and b. is obligated to deposit Participant Voluntary Contributions into the DPPK managing the PPMP.

Article 12
(1) A DPPK managing a PPMP that manages a Participant Voluntary Contribution program must have:
a. a mechanism for distributing the development results of Participant Voluntary Contribution funds to each Participant's account; and b. a mechanism for paying Pension Benefits originating from the accumulation of Participant Voluntary Contributions and their development results. (2) A DPPK managing a PPMP is obligated to separate the recording and management of Participant Voluntary Contributions from the contributions of the Pension Program paid by the Employer and/or Participants. (3) The PDP may set costs charged to Participants for the management of Participant Voluntary Contribution funds.

Second Section
DPPK Managing PPIP
Paragraph 1
General
Article 13
(1) Contributions in a DPPK managing a PPIP consist of:
a. Employer and Participant contributions; or b. Employer contributions.

(2) Employer Contributions as referred to in paragraph (1) are specific nominal amounts or percentages determined by the Employer.
(3) In the event that Participants also contribute, the size of the Participant Contribution as referred to in paragraph (1) letter a may be:
a. a nominal amount; or b. a specific percentage, provided that it does not exceed the total of the Employer Contribution.
(4) The size of the contribution as referred to in paragraph (1) must be established in the Pension Fund Program Document (PDP).
(5) The size of the contribution as referred to in paragraph (4) may be set differently for groups of Participants while still observing the principles of equality and fairness.

Article 14
The accumulation of Employer Contributions and their development results in the Pension Fund Management Company (DPPK) that administers the Employer-Paid Pension Program (PPIP) for Participants who cease employment and have a membership period of less than 3 (three) years may be given to the Participant who ceased employment or used as future Employer Contributions.

Paragraph 2
Minimum Contributions

Article 15
(1) The DPPK administering the PPIP must ensure that the funding condition is in a Fully Funded State.
(2) In the event that the condition as referred to in paragraph (1) is not yet met, the Employer is responsible for ensuring that the DPPK administering the PPIP directly or gradually achieves a Fully Funded State.

Article 16
(1) The size of the Minimum Contribution for the DPPK administering the PPIP must be established in the PDP as referred to in Article 13 paragraph (4).
(2) Minimum Contributions originating from Participants as referred to in Article 13 paragraph (3) do not include Voluntary Participant Contributions.
(3) In the event that the DPPK administering the PPIP contributions consist of Participant Contributions and Employer Contributions, the Employer is obligated to pay all contributions to the Pension Fund. (4) For the DPPK administering the PPIP, the Employer is obligated to pay all Participant Contributions and Employer Contributions as referred to in paragraph (3) no later than the 15th (fifteenth) day of the following month. (5) In the event that there are Participant Contributions as referred to in Article 13 paragraph (1) letter a, the Employer is the collector of Participant Contributions based on the PDP, collected at least 1 (one) time per month. (6) For the DPPK administering the PPIP, Minimum Contributions as referred to in paragraph (1) that have not been paid after passing 1 (one) month from the due date are declared:
a. as a debt of the Employer that can be immediately collected and subject to a specific return rate equal to the most advantageous return rate of government-owned general bank deposits for the relevant Participant, calculated from the first day of the month as referred to in paragraph (4); and b. as a receivable of the DPPK administering the PPIP that has primary rights, if the Employer is liquidated or declared bankrupt. (7) For the DPPK administering the PPIP based on Sharia Principles, Participant Contributions and Employer Contributions that have not been paid after passing 1 (one) month from the due date are declared as the Employer's debt and subject to administrative sanctions (ta’zir) in the form of fines calculated from the first day of the month of the contribution payment due date. (8) Funds originating from administrative sanctions (ta’zir) in the form of fines as referred to in paragraph (7) are not included in the assets of the DPPK administering the PPIP and can only be used for social interests.

Paragraph 3
Voluntary Participant Contributions

Article 17
(1) In the event that a Participant of the DPPK administering the PPIP wishes to increase the size of the Pension Benefits to be obtained other than from the accumulation of funds, the Participant may add contributions in the form of Voluntary Participant Contributions. (2) The addition of contributions in the form of Voluntary Participant Contributions as referred to in paragraph (1) must first be regulated in the PDP. (3) Voluntary Participant Contributions as referred to in paragraph (1) are based on a written statement from the Participant containing willingness to pay Voluntary Participant Contributions.

Article 18
In the event that there are Voluntary Participant Contributions as referred to in Article 17 paragraph (1), the Employer:
a. is the collector of Voluntary Participant Contributions; and b. is obligated to pay Voluntary Participant Contributions to the DPPK administering the PPIP.

Article 19
(1) The DPPK administering the PPIP that administers the Voluntary Participant Contribution program must have:
a. a mechanism for distributing the development results of Voluntary Participant Contributions to each Participant's account; and b. a mechanism for paying Pension Benefits originating from the accumulation of Voluntary Participant Contributions and their development results. (2) The DPPK administering the PPIP is obligated to perform separate recording and management of Voluntary Participant Contributions from the Pension Program contributions paid by the Employer and/or Participants. (3) The PDP may establish costs charged to Participants for the management of Voluntary Participant Contribution funds.

Part Three
DPLK

Paragraph 1
General

Article 20
(1) Contributions in the DPLK consist of:
a. Employer Contributions and Participant Contributions; b. Employer Contributions; or
c. Participant Contributions.
(2) Employer Contributions and Participant Contributions as referred to in paragraph (1) letter a, and Employer Contributions as referred to in paragraph (1) letter b, are paid to the DPLK by being deposited through the Employer for and on behalf of the Participant. (3) Participant Contributions as referred to in paragraph (1) letter c are paid to the DPLK by being deposited directly by the Participant or through the Employer for and on behalf of the Participant. (4) In the event that the Participant pays contributions to the DPLK directly, the size of the contribution is established in an agreement between the Participant and the DPLK.

Article 21
(1) In the event that the Employer pays contributions as referred to in Article 20 paragraph (2) and paragraph (3), the Employer is obligated to declare in writing its obligation to pay all contributions in cash. (2) The written statement as referred to in paragraph (1) must at least contain provisions regarding:
a. the size of the contribution; b. the frequency of contribution payments; and
c. the due date of the contribution.
(3) Changes to the written statement as referred to in paragraph (2) that cause a decrease in the size of the contribution cannot apply retroactively.
(4) The written statement as referred to in paragraph (2) and changes as referred to in paragraph (3) are submitted to the DPLK and announced to employees who are entitled.

Paragraph 2
Voluntary Participant Contributions

Article 22
(1) The DPLK may administer Voluntary Participant Contributions for Participants who are employees included by the Employer.
(2) The administration of Voluntary Participant Contributions as referred to in paragraph (1) must first be regulated in the PDP.

Article 23
In the event that there are Voluntary Participant Contributions as referred to in Article 22 paragraph (1), the Employer:
a. is the collector of Voluntary Participant Contributions; b. is obligated to pay Voluntary Participant Contributions to the DPLK; and
c. is obligated to add information regarding Voluntary Participant Contributions in the written statement as referred to in Article 21 paragraph (1).

Article 24
The DPLK is obligated to perform separate recording and management of Voluntary Participant Contributions from the Pension Program contributions paid by the Employer and/or Participants established by the Employer.

Part Four
Deferral of DPPK Contribution Payments

Paragraph 1
Deferral of Founding DPPK Contributions

Article 25
(1) In the event that the Founder in the DPPK is unable to fulfill obligations as referred to in Article 6 paragraph (3) and Article 16 paragraph (3) for a period of 3 (three) consecutive months, the Board of Directors is obligated to notify the Financial Services Authority (OJK). (2) In the event that the Founder in the DPPK is unable to fulfill obligations as referred to in paragraph (1), the Founder may submit a request for deferral of contribution payments to the Financial Services Authority. (3) The Financial Services Authority has the authority to grant approval for the request for deferral of contribution payments as referred to in paragraph (2) for a maximum of 20 (twenty) working days from complete documents. (4) Deferral of contribution payments based on approval as referred to in paragraph (3) is valid for a period of maximum 1 (one) year calculated from the date of approval. (5) Upon the Founder's request as referred to in paragraph (2), the Financial Services Authority may establish the effective date of the deferral before the date of approval as referred to in paragraph (3), for a maximum period from the date of sending the request. (6) Deferral as referred to in paragraph (2) may only be conducted if the Founder has experienced financial difficulties in the last 1 (one) year. (7) Requests as referred to in paragraph (2) and paragraph (5) are submitted in writing to the Financial Services Authority and attached with evidence supporting the existence of financial difficulties as referred to in paragraph (6). (8) During the deferral period, other provisions of the PDP, including provisions regarding the payment of Pension Benefits, remain applicable.

Paragraph 2
Deferral of Co-Founder Contributions in DPPK

Article 26
(1) In the event that the Co-Founder in the DPPK is unable to fulfill obligations as referred to in Article 6 paragraph (3) and Article 16 paragraph (3) for a period of 3 (three) consecutive months, the Board of Directors is obligated to notify the Founder. (2) Based on the notification from the Board of Directors as referred to in paragraph (1), the Founder may establish:
a. deferral of Co-Founder employee membership; or b. termination of Co-Founder employee membership.
(3) Deferral of Co-Founder employee membership as referred to in paragraph (2) letter a must be reported to the Financial Services Authority.

Article 27
(1) Deferral of Co-Founder employee membership as referred to in Article 26 paragraph (2) letter a may be conducted by the Founder for a period of maximum 1 (one) year calculated from the time the Co-Founder has not paid contributions for 3 (three) consecutive months. (2) During the period of deferral of Co-Founder employee membership as referred to in paragraph (1), the Co-Founder conducts deferral of contribution payments.

Article 28
If the deferral period of membership as referred to in Article 27 ends and it turns out that the Co-Founder still does not pay contributions, the Founder is obligated to terminate the Co-Founder employee membership by changing the PDP.

Part Five
Administrative Sanctions

Article 29
(1) Violations of the provisions as referred to in Article 4, Article 6 paragraph (1), paragraph (3), paragraph (4), Article 10 paragraph (2), Article 11 letter b, Article 12 paragraph (1), paragraph (2), Article 13 paragraph (4), Article 16 paragraph (1), paragraph (3), paragraph 4, Article 17 paragraph (2), Article 18 letter b, Article 19 paragraph (1), paragraph (2), Article 21 paragraph (1), Article 22 paragraph (2), Article 23 letter b, letter c, Article 24, Article 25 paragraph (1), Article 26 paragraph (1), paragraph (3), and/or Article 28 of this Financial Services Authority Regulation are subject to administrative sanctions in the form of:
a. written warning; b. prohibition to administer certain programs; and/or
c. downgrade of health level.
(2) In the event that a violation of the provisions as referred to in paragraph (1) occurs but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Part Six
Re-evaluation of Key Parties

Article 30
In addition to imposing administrative sanctions as referred to in Article 29 paragraph (1), the Financial Services Authority has the authority to conduct re-evaluation of key parties.

CHAPTER III
PENSION BENEFITS

Part One
Pension Benefits of DPPK PPMP

Article 31
(1) Participants of the DPPK administering the PPMP are entitled to Pension Benefits based on the PDP.
(2) Participants of the DPPK administering the PPMP as referred to in paragraph (1) consist of:
a. employees; b. retirees; and
c. individuals who were previously employees and are still entitled to Pension Benefits.

Article 32
(1) The size of Pension Benefits is calculated using:
a. Monthly Formula; or b. Lump Sum Formula.
(2) Pension Benefits calculated using the Monthly Formula consist of:
a. Pension Benefits linked to working period, which is the result of multiplication of:

appreciation factor per year of working period expressed in percentage;
working period, calculated based on working period at the Employer and outside the Employer funded by the Employer; and
Basic Pension Income; and
b. Pension Benefits not linked to working period, which is the result of multiplication of:
appreciation factor expressed in percentage; and
Basic Pension Income.
(3) Pension Benefits calculated using the Lump Sum Formula consist of:
a. Pension Benefits linked to working period, which is the result of multiplication of:
appreciation factor per year of working period expressed in decimal number;
working period, calculated based on working period at the Employer and outside the Employer funded by the Employer; and
Basic Pension Income; and
b. Pension Benefits not linked to working period, which is the result of multiplication of:
appreciation factor expressed in decimal number; and
Basic Pension Income.
(4) The PDP of the DPPK administering the PPMP may establish differences in the size of the appreciation factor as referred to in paragraph (2) letter a number 1, paragraph (2) letter b number 1, paragraph (3) letter a number 1, and paragraph (3) letter b number 1 while still observing the principles of equality and fairness.

Article 33
(1) Participant Contributions in 1 (one) year for the DPPK administering the PPMP using the Monthly Formula as referred to in Article 32 paragraph (1) letter a, are at most 3 (three) times the appreciation factor per year of working period times the Basic Pension Income per year. (2) Participant Contributions in 1 (one) year for the DPPK administering the PPMP using the Lump Sum Formula as referred to in Article 32 paragraph (1) letter b, are at most 3% (three percent) times the appreciation factor per year of working period times the Basic Pension Income per year.

Article 34
(1) In the event that the Participant dies or becomes Disabled before retirement, the maximum working period recognized may include working period up to the date the Participant reaches Normal Retirement Age. (2) In the event that the Participant changes jobs and there is a transfer of funds from the old DPPK administering the PPMP to the new DPPK administering the PPMP, the working period recognized is in accordance with the amount of funds converted into working period based on the Pension Benefit formula in the new DPPK administering the PPMP.

Article 35
In calculating Pension Benefits, for the portion of working period of less than 1 (one) year, it is calculated by:
a. prorata; or b. rounding up.

Article 36
For monthly payment of Pension Benefits conducted by the DPPK administering the PPMP, the amount paid is calculated with the following provisions:
a. for Pension Benefits calculated using the Monthly Formula, it must be based on the formula established in the PDP; b. for Pension Benefits calculated using the Lump Sum Formula, it must be based on a table made based on Actuarial Assumptions containing factors to convert Lump Sum Pension Benefits into monthly payments.

Article 37
(1) Normal Retirement Age is first established at a minimum of 55 (fifty-five) years.
(2) Normal Retirement Age as referred to in paragraph (1) is established periodically at most every 3 (three) years by referring to Government Regulations regarding the procedures for review and establishment of Normal Retirement Age. (3) Normal Retirement Age as referred to in paragraph (1) applies to Every Person who starts becoming a Participant since January 12, 2023.

Article 38
(1) Early retirement age is established at earliest 5 (five) years before Normal Retirement Age.
(2) The size of Early Pension Benefits for Participants who cease employment at early retirement age or due to Disability, is at most equal to the amount calculated using the Pension Benefit formula contained in the PDP. (3) Early retirement age as referred to in paragraph (1) applies to Every Person who starts becoming a Participant since January 12, 2023.

Article 39
(1) Payment of Pension Benefits for Participants, Widows/Widowers, or children must be conducted periodically.
(2) The procedure for payment of Pension Benefits for Participants, Widows/Widowers, or children as referred to in paragraph (1) is regulated in the PDP.
(3) Participants, Widows/Widowers, or children may choose periodic payment of Pension Benefits as referred to in paragraph (1) by:
a. being paid by the Pension Fund; and/or b. choosing to purchase annuities or Sharia annuities from life insurance companies or Sharia life insurance companies. (4) In the event that Pension Benefit payment is paid by the Pension Fund as referred to in paragraph (3) letter a, Pension Benefits for Participants, Widows/Widowers, or children must meet the following provisions:
a. paid periodically with a fixed or increasing value, with payments conducted for life; b. in the event that the Participant dies, Pension Benefits paid to the legitimate Widow/Widower or child are at least 60% (sixty percent) of the Participant's rights; and
c. Pension Benefits to children can be paid until the child reaches a maximum age of 25 (twenty-five) years.
(5) In the event that Pension Benefit payment is conducted by purchasing annuities or Sharia annuities from life insurance companies or Sharia life insurance companies as referred to in paragraph (3) letter b, the Board of Directors of the DPPK administering the PPMP, upon the choice of the Participant, Widow/Widower, or child, must purchase annuities or Sharia annuities from life insurance companies or Sharia life insurance companies, with the condition that the chosen annuity:
a. provides Pension Benefits for at least 10 (ten) years; b. meets the provisions of legislation in the field of Pension Funds and the PDP of the DPPK administering the PPMP;
c. is a product from a life insurance company or Sharia life insurance company that in the last 3 (three) years has met the minimum solvency ratio targets in accordance with Financial Services Authority Regulations regarding the financial health of insurance and reinsurance companies based on audited financial reports; and
d. is a product of a life insurance company or Sharia life insurance company that has obtained approval from the Financial Services Authority.
(6) In the event that the Participant dies before the annuity or Sharia annuity payment period as referred to in paragraph (3) letter b is completed, payment will continue to the Widow/Widower or child. (7) In the event that there is no Widow/Widower or child as referred to in paragraph (6), payment can be made in a lump sum to the designated party. (8) If up to 30 (thirty) days before the payment of Pension Benefits, the Participant has not made a choice as referred to in paragraph (3), the Board of Directors must purchase annuities or Sharia annuities from life insurance companies or Sharia life insurance companies that meet the conditions as referred to in paragraph (5). (9) The choice of annuity or Sharia annuity determined by the Participant is declared void if the Participant dies before the payment of Pension Benefits begins.

Article 40
The DPPK administering the PPMP is prohibited from paying Pension Benefits to Participants before reaching an age of at least 5 (five) years before Normal Retirement Age, except for:
a. payment of Pension Benefits to Widows/Widowers or children; b. payment of Disability Pension Benefits; and/or
c. certain emergency conditions, namely when the Participant experiences financial difficulties and critical illness.

Article 41
The amount of Pension Benefits paid in a lump sum for a Participant who dies more than 5 (five) years before reaching Normal Retirement Age is equal to the Lump Sum Value of Pension Benefits calculated based on Actuarial Assumptions used in the latest Actuarial Report, except for projections of Basic Pension Income increase rates, resignation rates, and Disability rates.

Article 42
If the payment of Pension Benefits ends and the total amount of Pension Benefits paid is less than the accumulation of Participant Contributions plus their development results up to the start of Pension Benefit payments, the Board of Directors is obligated to pay the difference in a lump sum to the legitimate heirs of the Participant.

Article 43
(1) Participants of the DPPK administering the PPMP at the time of retirement or upon termination, and for Widows/Widowers or children, may receive the first Pension Benefit of at most 20% (twenty percent) of the Pension Benefits in a lump sum. (2) In the event that the Participant of the DPPK administering the PPMP at the time of retirement has already taken the first Pension Benefit of at most 20% (twenty percent) in a lump sum, upon the Participant's death, the Widow/Widower or child cannot take the first Pension Benefit mentioned again. (3) Payment of the first Pension Benefit of at most 20% (twenty percent) as referred to in paragraph (1) can be conducted if it has been regulated in the PDP.

Article 44
(1) Participants, Widows/Widowers, or children in the DPPK administering the PPMP are entitled to choose lump sum payment of Pension Benefits if:
a. the Participant dies before reaching early retirement age; b. paid to the party designated by the Participant in the event that the Participant dies and has no Widow/Widower or child;
c. the Pension Benefits to be paid per month using the Monthly Formula are less than or equal to Rp1,600,000.00 (one million six hundred thousand rupiah); or
d. the Pension Benefits calculated using the Lump Sum Formula are less than or equal to Rp500,000,000.00 (five hundred million rupiah).
(2) In the event that the PDP provides a choice to receive the first Pension Benefit in a lump sum as referred to in Article 43 paragraph (1), the Pension Benefits as referred to in paragraph (1) are calculated after the taking of the first Pension Benefit. (3) In the event that Pension Benefits from the DPPK administering the PPMP received monthly by retirees, Widows/Widowers, or children are less than or equal to Rp1,600,000.00 (one million six hundred thousand rupiah) as referred to in paragraph (1) letter c, the Present Value of the unpaid Pension Benefits can be paid in a lump sum. (4) Payment of Pension Benefits in a lump sum as referred to in paragraph (1), paragraph (2), and paragraph (3) can be conducted if these provisions are contained in the PDP. (5) The Founder may establish Pension Benefits that can be paid in a lump sum with a value lower than the amounts as referred to in paragraph (1) letter c and letter d and paragraph (3) in the PDP. (6) In the event that the Founder establishes values as referred to in paragraph (5), the Founder must apply the principle of prudence by considering the interests of Participants.

(7) In the event that no designated party exists as referred to in paragraph (1) letter b, Pension Benefits may be paid to the Participant's heirs in accordance with the applicable inheritance laws and regulations.

(8) The limit for the simultaneous payment of Pension Benefits as referred to in paragraph (1) letters c and d and paragraph (3) shall be reviewed and established periodically, at most every 5 (five) years.

(9) Provisions regarding the review and establishment of the limit for simultaneous payment of Pension Benefits as referred to in paragraph (8) shall be determined by the Financial Services Authority.

Article 45

(1) In the event that a Participant who is a member of an Employer-Sponsored Pension Fund (DPPK) administering an Employer-Sponsored Pension Program (PPMP) stops working after having a membership period of at least 3 (three) years and has not yet reached the accelerated retirement age, they are entitled to Deferred Pension, the amount of which is equal to the sum calculated based on the Pension Benefit formula for their membership up until the time they stopped working.

(2) The right to payment of Deferred Pension for Participants who stopped working as referred to in paragraph (1) may be paid starting from when they reach the accelerated retirement age.

(3) In the event that a Participant is entitled to Deferred Pension, the right to Deferred Pension may be paid by the DPPK administering the relevant PPMP or may be transferred to another DPPK or DPLK, provided that the relevant party is still alive within 30 (thirty) days after stopping work.

(4) In the event that a Participant who stopped working as referred to in paragraph (1) dies before the payment of Deferred Pension begins, the provisions regarding rights arising upon the Participant's death as referred to in Article 44 paragraph (1) letter a shall apply.

(5) In the event that the Lump Sum Value of the right to Deferred Pension for a Participant who stopped working as referred to in paragraph (1) is less than or equal to Rp100,000,000.00 (one hundred million rupiah), the right to Deferred Pension may be paid in a lump sum at the time the employee stops working.

(6) The limit for the Lump Sum payment as referred to in paragraph (5) shall be reviewed and established periodically, at most every 5 (five) years.

(7) Provisions regarding the review and establishment of the limit for Lump Sum payment as referred to in paragraph (6) shall be determined by the Financial Services Authority.

Article 46

In the event that a Participant of a DPPK administering a PPMP stops working after reaching the accelerated retirement age, based on the Participant's choice, the right to Accelerated Pension Benefits may:
a. be paid by the DPPK administering the relevant PPMP; b. have the payment of pension benefits deferred by the DPPK administering the relevant PPMP until reaching Normal Retirement Age;
c. be transferred to another DPPK; or
d. be transferred to a DPLK.

Article 47

(1) In the event that there are Participant Voluntary Contributions, the payment of Pension Benefits that are the Participant's right consists of Pension Benefits based on the formula in the PDP and the accumulation of Participant Voluntary Contributions and their development results.

(2) The accumulation of Participant Voluntary Contributions and their development results as referred to in paragraph (1) may be paid in a lump sum or periodically according to the Participant's choice.

Article 48

In the event that the Participant, Widow/Widower, or child:
a. is in a condition of financial difficulty and suffering from a critical illness supported by documents proving it; b. is an Indonesian citizen who has changed nationality; or
c. is a foreign national whose employment period has ended and who no longer works in Indonesia,
the DPPK administering the PPMP may make a lump sum payment of Pension Benefits outside the provisions as referred to in Article 44.

Article 49

(1) In the event that there is a termination of a Founding Partner in a DPPK administering a PPMP, the payment of Pension Benefits for retirees, Widows/Widowers, or children of the Founding Partner may be paid in a lump sum provided it does not exceed the value as referred to in Article 44 paragraph (1) letters c and d.

(2) In the event that there is a change of Pension Program in a DPPK from PPMP to PPIP, the payment of Pension Benefits for retirees, Widows/Widowers, or children may be paid in a lump sum provided it does not exceed the value as referred to in Article 44 paragraph (1) letters c and d.

(3) In the event that the payment of Pension Benefits as referred to in paragraph (2) exceeds the value as referred to in Article 44 paragraph (1) letters c and d, the payment must be made periodically in accordance with the provisions in Article 39 paragraph (3).

(4) In the event that the DPPK administering the PPMP is liquidated, the Present Value of Pension Benefits that have not yet been paid to retirees, Widows/Widowers, and/or children may be paid in a lump sum provided it does not exceed the value as referred to in Article 44 paragraph (1) letters c and d.

Article 50

A DPPK administering a PPMP that has Founding Partners with a funding system where the burden is borne by each Employer may arrange:
a. different Pension Benefit formulas for each Employer; and b. different Participant contribution amounts for each Employer.

Article 51

(1) A DPPK administering a PPMP may provide a choice for Participants to fund the working period during leave outside the Employer's responsibility, both Normal Employer Contributions and Participant contributions.

(2) The choice for Participants to fund as referred to in paragraph (1) must first be regulated in the PDP.

(3) Funding the working period during leave outside the Employer's responsibility as referred to in paragraph (1) is calculated as Participant contributions in calculating Solvency Liability.

(4) In the event that the working period for calculating Pension Benefits is calculated based on working periods outside the Employer funded by the Employer as referred to in Article 32 paragraph (2) letter a number 2 and paragraph (3) letter a number 2, the contribution payment for the said working period is calculated based on actuarial valuation and paid in a lump sum.

Second Section
Pension Benefits of PPIP DPPK

Article 52

(1) The amount of the right to Pension Benefits for Participants of a DPPK administering a PPIP is the sum of:
a. Participant contributions and/or Employer contributions; b. initial Employer funds;
c. transfer of funds from other Pension Funds; and
d. development results from the sum of Participant contributions and/or Employer contributions as referred to in letter a, initial Employer funds as referred to in letter b, and transfer of funds from other Pension Funds as referred to in letter c, calculated from the date of membership in the DPPK administering the PPIP.

(2) Participants of a DPPK administering a PPIP as referred to in paragraph (1) consist of:
a. employees; b. retirees; and
c. individuals who were previously employees and still have rights to Pension Benefits.

(3) Pension Benefits as referred to in paragraph (1) may be calculated using the net asset value per unit method.

(4) Development results as referred to in paragraph (1) letter d take into account realized and unrealized investment development results.

Article 53

(1) A DPPK administering a PPIP must manage assets according to the Participant age group.

(2) Asset management as referred to in paragraph (1) for Participants who have reached an age of at most 5 (five) years and at least 2 (two) years before Normal Retirement Age, must be placed in:
a. time deposits or on-call deposits at Banks; b. deposit certificates at Banks;
c. securities issued by Bank Indonesia; and/or
d. Government Securities recorded using the amortized cost method.

Article 54

(1) Normal Retirement Age is initially set at a minimum of 55 (fifty-five) years.

(2) Normal Retirement Age as referred to in paragraph (1) is established periodically, at most every 3 (three) years, referring to Government Regulations regarding the procedures for reviewing and establishing Normal Retirement Age.

(3) Normal Retirement Age as referred to in paragraph (1) applies to Every Person who starts becoming a Participant since January 12, 2023.

Article 55

(1) Accelerated retirement age is set at earliest 5 (five) years before Normal Retirement Age.

(2) Accelerated retirement age as referred to in paragraph (1) applies to Every Person who starts becoming a Participant since January 12, 2023.

Article 56

(1) Payment of Pension Benefits for Participants, Widows/Widowers, or children must be made periodically.

(2) The procedure for payment of Pension Benefits for Participants, Widows/Widowers, or children as referred to in paragraph (1) is regulated in the PDP.

(3) Participants, Widows/Widowers, or children may choose periodic payment of Pension Benefits as referred to in paragraph (1) by:
a. being paid by the Pension Fund; and/or b. choosing to purchase an annuity or Shariah annuity from a life insurance company or Shariah life insurance company.

(4) In the event that Pension Benefit payments are made by the Pension Fund as referred to in paragraph (3) letter a, Pension Benefits for Participants, Widows/Widowers, or children must meet the following provisions:
a. paid periodically based on the choice of the Participant, Widow/Widower, or child for a period of at least 10 (ten) years after the Participant reaches retirement age in accordance with provisions regulated in the PDP; b. the risk regarding the development of accumulated contributions is the responsibility of the Participant, Widow/Widower, or child;
c. the PDP must still contain the payment option for Pension Benefits to be purchased as an annuity or Shariah annuity; and
d. must be based on a table created to convert total accumulated contributions and development results into monthly payments.

(5) In the event that Pension Benefit payments are made by purchasing an annuity or Shariah annuity from a life insurance company or Shariah life insurance company as referred to in paragraph (3) letter b, the DPPK Board administering the PPIP, upon request and choice of the Participant, Widow/Widower, or child, must purchase an annuity or Shariah annuity from a life insurance company or Shariah life insurance company with the condition that the chosen annuity:
a. provides Pension Benefits for at least 10 (ten) years; b. meets the provisions of laws and regulations in the field of Pension Funds and the PDP of the DPPK administering the PPIP;
c. is a product from a life insurance company or Shariah life insurance company that in the last 3 (three) years has met the minimum solvency ratio targets in accordance with Financial Services Authority Regulations regarding the financial health of insurance and reinsurance companies based on audited financial reports; and
d. is a product from a life insurance company or Shariah life insurance company that has received approval from the Financial Services Authority.

(6) In the event that the Participant dies before the payment period for the annuity or Shariah annuity as referred to in paragraph (3) letter b is completed, the payment will continue to the Widow/Widower or child.

(7) In the event that there is no Widow/Widower or child as referred to in paragraph (6), the payment may be paid in a lump sum to the designated party.

(8) If by 30 (thirty) days before the payment of Pension Benefits, the Participant has not made a choice as referred to in paragraph (3), the Board must purchase an annuity or Shariah annuity from a life insurance company or Shariah life insurance company that meets the conditions as referred to in paragraph (5).

(9) The choice of annuity or Shariah annuity determined by the Participant is declared void if the Participant dies before the payment of Pension Benefits begins.

Article 57

A DPPK administering a PPIP is prohibited from making Pension Benefit payments to Participants before reaching an age of at least 5 (five) years before Normal Retirement Age, except for:
a. payment of Pension Benefits to Widows/Widowers or children; b. payment of Disability Pension Benefits; and
c. specific emergency conditions, namely when the Participant experiences financial difficulty and critical illness.

Article 58

(1) Participants of a DPPK administering a PPIP at the time of retirement or at the time of termination, and for Widows/Widowers or children, may receive the first Pension Benefit of at most 20% (twenty percent) of the Pension Benefits in a lump sum.

(2) In the event that a Participant of a DPPK administering a PPIP at the time of retirement has already taken the first Pension Benefit of at most 20% (twenty percent) in a lump sum, upon the Participant's death, the Widow/Widower or child cannot take the said first Pension Benefit again.

(3) Payment of the first Pension Benefit of at most 20% (twenty percent) as referred to in paragraph (1) may be done if it has been regulated in the PDP.

Article 59

(1) In the event that the amount of accumulated contributions, initial Employer funds, transfer of funds from other Pension Funds, and their development results as referred to in Article 52 paragraph (1) which are the rights of the Participant, Widow/Widower, or child is less than or equal to Rp500,000,000.00 (five hundred million rupiah), Participants, Widows/Widowers, or children in a DPPK administering a PPIP have the right to choose lump sum payment of Pension Benefits.

(2) In the event that the PDP provides a choice to receive the first Pension Benefit in a lump sum as referred to in Article 58 paragraph (1), the Pension Benefits as referred to in paragraph (1) are calculated after the taking of the said first Pension Benefit.

(3) Payment of Pension Benefits in a lump sum as referred to in paragraph (1) and paragraph (2) may be done if the provisions are included in the PDP.

(4) The Founder may establish Pension Benefits that can be paid in a lump sum with a value lower than the amount as referred to in paragraph (1) in the PDP.

(5) In the event that the Founder establishes the value as referred to in paragraph (4), the Founder must apply the principle of prudence by considering the interests of the Participants.

(6) In the event that there is no Widow/Widower or child, Pension Benefits may be paid to the party designated by the Participant.

(7) In the event that there is no designated party as referred to in paragraph (6), Pension Benefits may be paid to the Participant's heirs in accordance with the provisions of laws and regulations regarding inheritance law.

(8) The limit for simultaneous payment of Pension Benefits as referred to in paragraph (1) shall be reviewed and established periodically, at most every 5 (five) years.

(9) Provisions regarding the review and establishment of the limit for simultaneous payment of Pension Benefits as referred to in paragraph (7) shall be determined by the Financial Services Authority.

Article 60

(1) In the event that a Participant in a DPPK administering a PPIP stops working after having a membership period of at least 3 (three) years and has not yet reached the accelerated retirement age, they are entitled to Pension Benefits that must be used to obtain Deferred Pension.

(2) Participants who stopped working and are entitled to Deferred Pension as referred to in paragraph (1) may obtain Pension Benefits starting from when they reach the accelerated retirement age.

(3) In the event that a Participant is entitled to Deferred Pension, the right to Deferred Pension may be paid by the DPPK administering the relevant PPIP or may be transferred to another DPPK or DPLK, provided that the relevant party is still alive within 30 (thirty) days after stopping work.

(5) In the event that the Pension Benefits from a Participant who stopped working as referred to in paragraph (1) and the transfer of funds from other DPPKs and DPLKs are less than or equal to Rp100,000,000.00 (one hundred million rupiah), the right to Deferred Pension may be paid in a lump sum at the time the employee stops working.

(6) The limit for Lump Sum payment as referred to in paragraph (5) shall be reviewed and established periodically, at most every 5 (five) years.

(7) Provisions regarding the review and establishment of the limit for Lump Sum payment as referred to in paragraph (6) shall be determined by the Financial Services Authority.

(8) Participants in a DPPK administering a PPIP who stop working and have a membership period of less than 3 (three) years are entitled to the sum of their Participant contributions plus development results.

Article 61

(1) In the event that a Participant of a DPPK administering a PPIP stops working after reaching the accelerated retirement age, based on the Participant's choice, the right to Accelerated Pension Benefits may:
a. be paid by the DPPK administering the relevant PPIP; b. have the payment of pension benefits deferred by the DPPK administering the PPIP until reaching Normal Retirement Age;
c. be transferred to another DPPK; or
d. be transferred to a DPLK.

(2) In the event that the Participant as referred to in paragraph (1) chooses to have the right to accelerated pension paid by the DPPK administering the relevant PPIP or to defer the payment of pension benefits until reaching Normal Retirement Age, the provisions for lump sum payment of Pension Benefits as referred to in Article 59 shall apply.

Article 62

Article 63

In the event that the Participant, Widow/Widower, or child:
a. is in a condition of financial difficulty and suffering from a critical illness supported by documents proving it; b. is an Indonesian citizen who has changed nationality; or
c. is a foreign national whose employment period has ended and who no longer works in Indonesia,
the DPPK administering the PPIP may make a lump sum payment of Pension Benefits outside the provisions as referred to in Article 59.

Article 64

(1) A DPPK administering a PPIP that makes periodic payments of Pension Benefits must pay attention to the principle of asset-liability matching.

(2) Assets as referred to in paragraph (1) must be:
a. time deposits or on-call deposits at Banks; b. deposit certificates at Banks;
c. securities issued by Bank Indonesia; and/or
d. Government Securities recorded using the amortized cost method.

(3) A DPPK administering a PPIP must maintain liquidity levels in accordance with Pension Benefits that are due.

Third Section
Pension Benefits of DPLK

Article 65

(1) The amount of the right to Pension Benefits for DPLK Participants is the sum of:
a. Participant contributions and/or Employer contributions; b. initial Employer funds;
c. transfer of funds from other Pension Funds; and
d. development results from the sum of Participant contributions and/or Employer contributions as referred to in letter a, initial Employer funds as referred to in letter b, and transfer of funds from other Pension Funds as referred to in letter c, calculated from the date of membership in the DPLK.

(2) Pension Benefits as referred to in paragraph (1) may be calculated using the net asset value per unit method.

(3) DPLK Participants as referred to in paragraph (1) consist of:
a. independent Participants; or b. employees included by the Employer.

Article 66

(1) The calculation of development results as referred to in Article 65 paragraph (1) letter d for each Participant must be done since the funds are credited to the DPLK until the time of payment to the Participant or until the time of purchasing an annuity or Shariah annuity from a life insurance company or Shariah life insurance company.

(2) Development results as referred to in Article 65 paragraph (1) letter d take into account realized and unrealized investment development results.

Article 67

(1) A DPLK manages assets according to the Participant age group or based on the Participant's choice.

(3) Participants may choose investment placements other than as referred to in paragraph (2).

(4) The Participant's choice as referred to in paragraph (1) and the choice of investment placement as referred to in paragraph (3) must be stated in a written statement.

(5) A DPLK is required to ensure that Participants receive information regarding the risks of the chosen investment placement, proven by a signed statement from the Participant.

Article 68

(1) Normal Retirement Age is initially set at a minimum of 55 (fifty-five) years.

(3) Normal Retirement Age as referred to in paragraph (1) applies to Every Person who starts becoming a Participant since January 12, 2023.

Article 69

(1) Accelerated retirement age is set at earliest 5 (five) years before Normal Retirement Age.

(2) Accelerated retirement age as referred to in paragraph (1) applies to Every Person who starts becoming a Participant since January 12, 2023.

Article 70

(1) A DPLK must pay Pension Benefits periodically to Participants, Widows/Widowers, or children.

(2) The procedure for paying Pension Benefits to Participants, Widows/Widowers, or children as referred to in paragraph (1) is regulated in the PDP.

(3) Participants, Widows/Widowers, or children may choose to receive Pension Benefit payments periodically as referred to in paragraph (1) by:
a. being paid by the Pension Fund; and/or b. choosing to purchase an annuity or Shariah annuity from a life insurance company or Shariah life insurance company.

(4) In the event that Pension Benefits are paid by the Pension Fund as referred to in paragraph (3) letter a, Pension Benefits for Participants, Widows/Widowers, or children must meet the following provisions:
a. paid periodically based on the choice of the Participant, Widow/Widower, or child for a minimum period of 10 (ten) years after the Participant reaches retirement age in accordance with provisions regulated in the PDP; b. the risk regarding the development of accumulated contributions is the responsibility of the Participant, Widow/Widower, or child;
c. the PDP must still contain the option to pay Pension Benefits to be used to purchase an annuity or Shariah annuity; and
d. must be based on a table created to convert total accumulated contributions and development results into monthly payments.

(5) In the event that Pension Benefit payments are made by purchasing an annuity or Shariah annuity from a life insurance company or Shariah life insurance company as referred to in paragraph (3) letter b, the DPLK Management, at the request and choice of the Participant, Widow/Widower, or child, must purchase an annuity or Shariah annuity from a life insurance company or Shariah life insurance company, provided that the chosen annuity:
a. provides Pension Benefits for a minimum of 10 (ten) years; b. meets the provisions of legislation in the field of Pension Funds and PDP of the DPLK;
c. is a product from a life insurance company or Shariah life insurance company that in the last 3 (three) years has met the minimum solvency rate target in accordance with the Financial Services Authority Regulation regarding the financial health of insurance companies and reinsurance companies based on audited financial reports; and
d. is a product of a life insurance company or Shariah life insurance company that has received approval from the Financial Services Authority.

(6) In the event that the Participant dies before the payment period of the annuity or Shariah annuity as referred to in paragraph (3) letter b is completed, payment will be continued to the Widow/Widower or child.

(7) In the event that there is no Widow/Widower or child as referred to in paragraph (6), payment may be made as a lump sum to the designated party.

(8) If by 30 (thirty) days before the payment of Pension Benefits, the Participant has not made a choice as referred to in paragraph (3), Management must purchase an annuity or Shariah annuity from a life insurance company or Shariah life insurance company that meets the conditions as referred to in paragraph (5).

(9) The choice of annuity or Shariah annuity determined by the Participant is declared void if the Participant dies before the payment of Pension Benefits begins.

Article 71
(1) DPLK is prohibited from paying Pension Benefits to Participants before reaching a minimum age of 5 (five) years before Normal Retirement Age, except for:
a. payment of Pension Benefits to Widows/Widowers or children; b. payment of Disability Pension Benefits;
c. specific emergency conditions, namely when the Participant experiences financial difficulties and critical illness; and
d. specific conditions for Participants who are not wage-earning employees of the business entity.

(2) The specific conditions for Participants who are not wage-earning employees of the business entity as referred to in paragraph (1) letter d are conditions where the Participant has reached a membership period in the DPLK for 10 (ten) years.

Article 72
(1) DPLK Participants upon retirement or upon termination, and for Widows/Widowers or children, may receive the first Pension Benefit payment of at most 20% (twenty percent) of the Pension Benefit as a lump sum.

(2) In the event that the DPLK Participant upon retirement has already taken the first Pension Benefit payment of at most 20% (twenty percent) as a lump sum, upon the Participant's death, the Widow/Widower or child cannot take the first Pension Benefit payment mentioned again.

(3) Payment of the first Pension Benefit of at most 20% (twenty percent) as referred to in paragraph (1) may be carried out if it is regulated in the PDP.

Article 73
(1) In the event that the total accumulated contributions, initial funds from the Employer, transfer of funds from other Pension Funds, and their development results as referred to in Article 65 paragraph (1) which become the right of the Participant, Widow/Widower, or child is less than or equal to Rp500,000,000.00 (five hundred million rupiah), the Participant, Widow/Widower, or child in the DPLK has the right to choose to receive Pension Benefits as a lump sum.

(2) In the event that the PDP provides the option to receive the first Pension Benefit as a lump sum as referred to in Article 72 paragraph (1), the Pension Benefit as referred to in paragraph (1) is calculated after the taking of the first Pension Benefit.

(3) Payment of Pension Benefits as a lump sum as referred to in paragraph (1) and paragraph (2) may be carried out if the provisions are included in the PDP.

(4) In the event that there is no Widow/Widower or child, Pension Benefits may be paid to the party designated by the Participant.

(5) In the event that there is no designated party as referred to in paragraph (4), Pension Benefits may be paid to the Participant's heirs in accordance with the provisions of legislation regarding inheritance law.

(6) The limit for payment of Pension Benefits as a lump sum as referred to in paragraph (1) is reviewed and determined periodically at most every 5 (five) years.

(7) Provisions regarding the review and determination of the limit for payment of Pension Benefits as a lump sum as referred to in paragraph (5) are determined by the Financial Services Authority.

Article 74
(1) If a Participant in the DPLK stops working after having a membership period of at least 3 (three) years and has not reached accelerated retirement age, they are entitled to Pension Benefits that must be used to obtain Deferred Pension.

(2) Participants who stop working and are entitled to Deferred Pension as referred to in paragraph (1) may receive Pension Benefits starting from when they reach accelerated retirement age.

(3) In the event that the Participant is entitled to Deferred Pension, the right to Deferred Pension may be paid by the relevant DPLK or may be transferred to another DPLK or DPPK, provided that the relevant party is still alive within 30 (thirty) days after stopping work.

(4) In the event that the Participant stops working as referred to in paragraph (1) and dies before the payment of Deferred Pension begins, the provisions regarding rights arising from the Participant's death apply.

(5) In the event that the total accumulated contributions paid on their behalf and the transfer of funds from other DPPK and DPLKs, as well as the development results of the Participant who stops working, are less than or equal to Rp100,000,000.00 (one hundred million rupiah), the Pension Benefit may be paid as a lump sum when the employee stops working.

(6) The limit for payment of Lump Sum Value as referred to in paragraph (5) is reviewed and determined periodically at most every 5 (five) years.

(7) Provisions regarding the review and determination of the limit for payment of Lump Sum Value as referred to in paragraph (6) are determined by the Financial Services Authority.

(8) Participants in the DPLK who are included by the Employer, if they stop working and have a membership period of less than 3 (three) years, are entitled to the Participant's accumulated contributions plus their development results.

(9) The accumulated contributions of the Employer and their development results in the DPLK for Participants who stop working and have a membership period of less than 3 (three) years as referred to in paragraph (8) may be given to the Participant who stopped working or used as Employer contributions in the future.

Article 75
(1) In the event that the DPLK Participant reaches accelerated retirement age, based on the Participant's choice, the right to Accelerated Pension Benefits may:
a. be paid by the relevant DPLK; or b. have the payment of pension benefits deferred by the DPLK until reaching Normal Retirement Age.

(2) In the event that the Participant as referred to in paragraph (1) chooses to have the right to accelerated pension paid by the relevant DPLK or to defer payment of pension benefits until reaching Normal Retirement Age, the provisions for payment of Pension Benefits as a lump sum as referred to in Article 73 apply.

Article 76
(1) In the event that there are Participant Voluntary Contributions, the payment of Pension Benefits becoming the Participant's right consists of Pension Benefits based on the accumulation of Minimum Contributions and their development results, and the accumulation of Participant Voluntary Contributions and their development results.

(2) The accumulation of Participant Voluntary Contributions and their development results as referred to in paragraph (1) may be paid as a lump sum or periodically according to the Participant's choice.

Article 77
In the event that the Participant, Widow/Widower, or child:
a. is in a condition of financial difficulty and critical illness supported by documentary evidence; b. is an Indonesian citizen who changes nationality; or
c. is a foreign citizen whose employment period has ended and who no longer works in Indonesia,
the DPLK may make a lump sum payment of Pension Benefits outside the provisions as referred to in Article 73.

Article 78
(1) DPLK making periodic payments of Pension Benefits must observe the principle of asset-liability matching.

(2) Assets as referred to in paragraph (1) must be in the form of:
a. time deposits or on-call deposits at Banks; b. deposit certificates at Banks;
c. securities issued by Bank Indonesia; and/or
d. Government Securities recorded using the amortized cost method.

(3) DPLK must maintain liquidity levels in accordance with maturing Pension Benefits.

Part Four
Management of Inactive Funds and Payment of Participant Rights

Article 79
(1) Pension Funds must maintain separate records for funds categorized as inactive funds.

(2) Before making separate records for funds categorized as inactive funds, Pension Funds must make efforts to pay Pension Benefits to the Participant or the Entitled Party since the Participant enters Normal Retirement Age at the latest 1 (one) year.

(3) Within a certain period as determined in Government Regulations, inactive funds as referred to in paragraph (1) are transferred to the estate administration office.

(4) In the event that inactive funds as referred to in paragraph (1) have not been transferred to the estate administration office, the inactive funds mentioned will be recorded as other assets.

Part Five
Participant Rights Following More Than 1 (One) Pension Program

Article 80
(1) In the event that a Participant follows more than 1 (one) Pension Program from DPPK and/or pension guarantee programs and DPLK, the following provisions apply to Participants who enter Normal Retirement Age or accelerated retirement age:
a. Pension Benefits to be received from the DPLK may be paid as a lump sum outside the provisions as referred to in Article 73; and b. Pension Benefits to be received from the DPPK must be paid monthly outside the provisions as referred to in Article 44 and Article 59.

(2) In the event that the accumulated Pension Benefits to be received from the DPPK and DPLK upon entering Normal Retirement Age or accelerated retirement age are less than or equal to Rp500,000,000.00 (five hundred million rupiah), the DPPK Pension Benefits as referred to in paragraph (1) letter b may be paid as a lump sum.

(3) In the event that DPPK Pension Benefits organizing the PPMP use the Monthly Formula, the balance of Pension Benefits must be calculated into the Lump Sum Formula for the purpose of calculating the accumulated Pension Benefits as referred to in paragraph (2).

Part Six
Administrative Sanctions

Article 81
(1) Violations of the provisions as referred to in Article 40, Article 42, Article 57, Article 67 paragraph (5), Article 71 paragraph (1), and/or Article 79 paragraph (1), paragraph (2) of this Financial Services Authority Regulation are subject to administrative sanctions in the form of:
a. written warning; b. prohibition to organize certain programs; and/or
c. downgrade of health rating.

(2) In the event that a violation of the provisions as referred to in paragraph (1) occurs but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically.

(3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Part Seven
Re-evaluation of Key Parties

Article 82
In addition to imposing administrative sanctions as referred to in Article 81 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of key parties.

CHAPTER IV
OTHER PENSION BENEFITS AND OTHER BENEFITS

Part One
Administration of Other Pension Benefits and Other Benefits

Article 83
(1) In addition to organizing Pension Programs, Pension Funds may organize programs that provide Other Pension Benefits and/or other benefits to Participants and/or the Entitled Party.

(2) Other Pension Benefits and/or other benefits as referred to in paragraph (1) must first be regulated in the PDP.

Article 84
Pension Funds that will organize programs providing Other Pension Benefits and/or other benefits must have operational readiness in the administration of the Other Benefits Program.

Article 85
Pension Funds may only organize or provide Other Pension Benefits and/or other benefits to Participants and/or the Entitled Party if the Employer has included in:
a. collective labor contract b. company regulations; or
c. collective labor agreement,
that it will provide Other Pension Benefits and/or other benefits to Participants and/or the Entitled Party.

Article 86
Pension Funds cannot organize programs that only provide other benefits without organizing a Pension Program.

Article 87
(1) In the event that Pension Funds organize programs providing Other Pension Benefits and/or other benefits to Participants and/or the Entitled Party, Pension Funds must separate the recording of assets and liabilities of the Pension Program from the assets and liabilities of Other Pension Benefits and/or other benefits.

(2) In the event that Pension Funds organize programs providing Other Pension Benefits and/or other benefits to Participants and/or the Entitled Party, Pension Funds must separate the recording of each type of Other Pension Benefits and/or other benefits.

Article 88
(1) The contribution portion in the Pension Program must be larger than contributions for other benefits.

(2) Contributions in the Pension Program as referred to in paragraph (1) are contributions for each program that aims to provide Pension Benefits.

(3) Fulfillment of the contribution portion as referred to in paragraph (1) is determined based on due contributions presented in the annual financial report audited by a public accountant submitted to the Financial Services Authority.

Part Two
Administrative Sanctions

Article 89
(1) Violations of the provisions as referred to in Article 83 paragraph (2), Article 87 paragraph (1), and/or Article 88 paragraph (1) of this Financial Services Authority Regulation are subject to administrative sanctions in the form of:
a. written warning; b. prohibition to organize certain programs; and/or
c. downgrade of health rating.

(3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Part Three
Re-evaluation of Key Parties

Article 90
In addition to imposing administrative sanctions as referred to in Article 89 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of key parties.

CHAPTER V
PENSION FUND FINANCING

Part One
Financing of DPPK Organizing PPMP

Paragraph 1
Quality of Financing of DPPK Organizing PPMP

Article 91
(1) Management of DPPK organizing PPMP must report the quality of PPMP financing periodically to the Financial Services Authority.

(2) The quality of financing as referred to in paragraph (1) includes:
a. first level, if the DPPK organizing PPMP is in a Fully Funded state; b. second level, if Funding Assets are less than Actuarial Present Value and not less than Solvency Liability; and
c. third level, if Funding Assets are less than Solvency Liability.

Article 92
(1) The quality of financing as referred to in Article 91 paragraph (1) is assessed based on actuarial valuation.

(2) Actuarial valuation as referred to in paragraph (1) is carried out by determining:
a. Solvency Liability; and b. Actuarial Present Value.

(3) Solvency Liability as referred to in paragraph (2) letter a is calculated based on the larger amount between the Participant's accumulated contributions and their development results, and the Present Value of Pension Benefits calculated based on the assumption that the Participant stops working on the actuarial valuation date and has full rights to the funds.

(4) Actuarial Present Value as referred to in paragraph (2) letter b is calculated based on the larger amount between Solvency Liability and the portion of the Present Value of Pension Benefits allocated to the period before the actuarial valuation date according to the actuarial valuation method used to determine Normal Contributions.

Article 93
(1) For the determination of financing quality as referred to in Article 91 paragraph (2), the Actuary must determine the amount of Funding Assets.

(2) Funding Assets as referred to in paragraph (1) are calculated from net assets minus:
a. assets in dispute in court, or controlled or seized by competent authorities; b. contributions, whether partially or fully, which on the actuarial valuation date have not been paid to the DPPK for more than 3 (three) months since their due date;
c. types of assets categorized as other receivables and other assets; and
d. investments that do not comply with provisions regarding Pension Fund investments.

Article 94
(1) Net assets as referred to in Article 93 paragraph (2) are obtained from audited financial reports as of the actuarial valuation date if the Actuarial Report is prepared for:
a. Periodic Actuarial Report; b. dissolution of DPPK organizing PPMP; and/or
c. change of PDP for changes to the Pension Program or that impact the transfer of assets from or to DPPK organizing PPMP.

(2) In the event that there is no audited financial report as of the actuarial valuation date as referred to in paragraph (1), the following provisions apply:
a. net assets as referred to in Article 93 paragraph (2) may be obtained from the audited financial report of the DPPK organizing PPMP signed by Management if the Actuarial Report is prepared for changes to PDP other than the purpose as referred to in paragraph (1) letter c; and b. the Actuary must verify the data in the financial report used based on actuarial practice standards for Pension Funds applicable in Indonesia.

(3) Funding Assets in the approval of the establishment of DPPK organizing PPMP are set to nil or calculated at the amount of cash funds to be transferred to the DPPK organizing PPMP as determined by the Founder.

Paragraph 2
Deficit and Surplus

Article 95
(1) The Actuary must determine Deficit or Surplus by comparing Actuarial Present Value as referred to in Article 92 paragraph (2) letter b against Funding Assets as referred to in Article 93.

(2) Deficit as referred to in paragraph (1) must be separated into:
a. the portion of Deficit calculated as Solvency Shortfall; and b. the portion of Deficit other than that calculated as Solvency Shortfall.

Article 96
(1) Each portion of Deficit as referred to in Article 95 paragraph (2) must be settled with Additional Contributions within a maximum period of:
a. 36 (thirty-six) months, for Deficit calculated as Solvency Shortfall; or b. 180 (one hundred eighty) months, for Deficit other than that calculated as Solvency Shortfall.

(2) In the event that the settlement of Deficit as referred to in paragraph (1) is done as a lump sum, the Additional Contribution payment is set at the amount of Deficit to be settled and must be done at the latest 3 (three) months from:
a. receipt of the Periodic Actuarial Report containing the lump sum settlement of Deficit by the Financial Services Authority; or b. approval of the PDP by the Financial Services Authority.

(3) In the event that settlement as referred to in paragraph (1) is done as a lump sum, Funding Assets in the Deficit calculation consider all due contributions.

(4) In the event that the deposit of Additional Contributions as a lump sum exceeds the time limit as referred to in paragraph (2), the Additional Contribution must be subject to a reasonable interest or sanction (ta'zir) in the form of a fine equal to the most favorable deposit interest rate of government-owned general banks for the relevant Participant, calculated from the actuarial valuation date.

(5) For Pension Funds organizing Pension Programs based on Shariah Principles, funds originating from sanctions (ta'zir) in the form of fines as referred to in paragraph (4) are not included in Pension Fund assets and can only be used for social purposes.

(6) In the event that the settlement of Deficit as referred to in paragraph (1) is done monthly, the amount of Additional Contribution each month is calculated so that the Present Value of the series of monthly Additional Contributions to be made during the installment period is equal to the amount of the relevant portion of Deficit.

(7) In the event that the settlement of Deficit as referred to in paragraph (1) is done monthly, the Employer may accelerate the settlement of Deficit by adjusting the Actuarial Report.

(8) The Financial Services Authority has the authority to extend the settlement period for Deficit calculated as Solvency Shortfall as referred to in paragraph (1) letter a to a maximum of 5 (five) years if the Employer experiences financial difficulties.

Article 97
In the event that a new actuarial valuation shows that the Present Value of the remaining series of monthly Additional Contributions determined in the previous Actuarial Statement is smaller than the corresponding Deficit determined on the actuarial valuation date, the difference is settled with new Additional Contributions, the settlement of which is as referred to in Article 96.

Article 98
(1) In the event that a new actuarial valuation shows that the Present Value of the remaining series of Additional Contributions for a specific portion of Deficit is larger than the corresponding portion of Deficit according to the new actuarial valuation determined on the actuarial valuation date, the corresponding portion of Deficit may be settled with new Additional Contributions.

(2) Provisions regarding the procedure for settling Deficit as referred to in Article 96 paragraph (2) to paragraph (7) apply mutatis mutandis.

regarding the settlement of new Additional Contributions only if new Additional Contributions to settle the portion of the Deficit as referred to in paragraph (1) are carried out at once. (3) In the event that new Additional Contributions to settle the portion of the Deficit as referred to in paragraph (1) are carried out monthly, the new monthly Additional Contribution is calculated so that the Present Value of the series of new monthly Additional Contributions equals the portion of the relevant Deficit and meets the following requirements:
a. The new monthly Additional Contribution is equal to or greater than the previous monthly Additional Contribution, with a settlement period shorter than the remaining settlement period previously established in the previous Actuarial Report; or b. The new monthly Additional Contribution is smaller than the previous monthly Additional Contribution, with a settlement period equal to the remaining settlement period previously established in the previous Actuarial Report. (4) In the event of a change in Actuarial Assumptions and/or actuarial valuation methods that results in a reduction in Deficit or an increase in Surplus, the Actuarial Report must establish a monthly Additional Contribution that is at least equal to the monthly Additional Contribution in the previous Actuarial Report. (5) In the event of a change in Actuarial Assumptions and/or actuarial valuation methods that results in an increase in Deficit or a decrease in Surplus, the Actuarial Report becomes effective as of the actuarial valuation date.
Article 99
(1) In the event that the Employer cannot make the deposit of Additional Contributions at once as referred to in Article 96 paragraph (2) and
Article 98 paragraph (2), within the established time limit, the Employer must make
monthly payments of Additional Contributions sufficient to cover the minimum funding needs outlined in the Actuarial Statement.
(2) In the event that the Employer does not make the deposit of Additional Contributions at once as referred to in
Article 96 paragraph (2) and Article 98 paragraph (2),
the deposit of Additional Contributions is carried out monthly with a settlement period as referred to in
Article 96 paragraph (1).
(3) Late payment of monthly Additional Contributions as referred to in paragraph (2) must be subject to reasonable interest or sanctions (ta’zir) in the form of a fine equal to the most profitable return on deposits of government-owned general banks for the relevant Participant, calculated from the actuarial valuation date. (4) For Pension Funds that operate Pension Programs based on Sharia Principles, funds derived from sanctions (ta’zir) in the form of fines as referred to in paragraph (3) are not included in the assets of the Pension Fund and can only be used for social interests.
Article 100
In the monthly Additional Contributions as referred to in Article 99 paragraph (1), additional costs are already included as a result of the monthly settlement of the Deficit, and these additional costs are an inseparable part of the aforementioned monthly Additional Contributions.
Article 101
(1) In the event that the Actuarial Report shows a Surplus, the remaining monthly Additional Contributions that have not yet matured on the new actuarial valuation date are cancelled. (2) The Surplus as referred to in paragraph (1) can be used for:
a. settling contribution debts, both the Employer's Normal Contribution and Additional Contributions; b. paying the Employer's Normal Contribution that has matured for periods after the actuarial valuation date;
c. funding Other Benefit Programs; and/or
d. assisting in the funding of other Employers, in the event that the DPPK operating a Multi-Employer Pension Program (PPMP) has Founding Partners, and the Employer does not bear the financing of the Pension Program equally. (3) The use of Surplus to assist in the funding of other Employers as referred to in paragraph (2) letter d can only be done if:
a. the Employer receiving the funding assistance is a party legally affiliated with the Employer experiencing the Surplus; and b. there is written approval from the Employer experiencing the Surplus. (4) In the event that the Surplus exceeds the greater amount between:
a. 20% (twenty percent) of the Actuarial Present Value; and b. the Employer's Normal Contribution portion plus 10% (ten percent) of the Actuarial Present Value, the excess Surplus must be calculated as the Employer's Normal Contribution. (5) In the event of a change in Actuarial Assumptions and/or actuarial valuation methods that results in the existence of a Surplus or an increase in Surplus, the Surplus or increase in Surplus cannot be calculated as the Employer's Normal Contribution. (6) In the event of a change in Actuarial Assumptions and/or actuarial valuation methods that results in a decrease in Surplus, the Surplus in question can still be calculated as the Employer's Normal Contribution.

Second Section
Funding of DPPK Operating PPIP
Article 102
(1) DPPK operating PPIP are in a state of Fully Funded when the monthly Minimum Contributions that have matured have been deposited to the DPPK operating PPIP. (2) The monthly Minimum Contributions as referred to in paragraph (1) are the total contribution amounts for all Participants, both from the Employer and Participants, as established in the PDP. Third Section Funding of DPPK Operating PMLMP
Article 103
(1) In the event that DPPK operates PMLMP, the funding of PMLMP is the responsibility of the Employer.
(2) The Board of Directors of the DPPK operating PMLMP must calculate and report the adequacy of PMLMP funds periodically to the Financial Services Authority.
(3) The adequacy of funds as referred to in paragraph (2) is assessed based on actuarial valuation by comparing between:
a. the program asset value of PMLMP; and b. the Present Value of potential PMLMP payments.
(4) The Actuary must establish the excess or shortfall in PMLMP funding, by calculating the adequacy of PMLMP funds as referred to in paragraph (3).
(5) The Employer must settle the shortfall in PMLMP funding as referred to in paragraph (4) in accordance with the Actuarial Statement.
(6) Excess PMLMP funding can be used for:
a. settling the Employer's contribution debt for PMLMP; and/or b. paying the Employer's contributions for PMLMP for periods after the actuarial valuation date. (7) In the event of a change in Actuarial Assumptions and/or actuarial valuation methods that results in the existence of excess PMLMP funding, an increase in excess PMLMP funding, or a decrease in shortfall in PMLMP funding, the PMLMP funding that must be deposited to the DPPK is at least equal to the funding established based on the previous actuarial valuation.
Article 104
(1) The shortfall in PMLMP funding as referred to in Article 103 paragraph (5) must be settled with Employer contributions within a maximum period of 5 (five) years. (2) The Financial Services Authority has the authority to grant an extension of the settlement period for the shortfall in PMLMP funding as referred to in paragraph (1) if the Employer experiences financial difficulties.
Article 105
(1) The funding sources for DPPK operating PMLMP consist of:
a. Employer contributions; and/or b. Participant contributions.
(2) In addition to the funding sources as referred to in paragraph (1), the funding sources for DPPK operating PMLMP can come from a certain percentage of the results of the development of the Pension Program, for DPPK that have first-level funding quality as referred to in Article 91 paragraph (2) letter a or second-level funding quality as referred to in Article 91 paragraph (2) letter b. (3) The percentage as referred to in paragraph (2) can only be calculated at most 20% (twenty percent) of the results of the development of the Pension Program. (4) DPPK operating PMLMP can only use funding sources from a certain percentage of the results of the development of the Pension Program as referred to in paragraph (2) if added with:
a. Employer contributions as referred to in paragraph (1) letter a; or b. Employer contributions as referred to in paragraph (1) letter a and Participant contributions as referred to in paragraph (1) letter b. (5) The mechanism for using the results of the development of the Pension Program as referred to in paragraph (2) must be established in the PDP. (6) In the event that DPPK provides PMLMP in the form of severance pay funds, the funding sources as referred to in paragraph (1) can only come from Employer contributions. (7) In the event that a Participant stops working, the following rules apply:
a. the collection of Employer contributions as referred to in paragraph (1) letter a for Participants who stop working, can be used as Employer contributions for other Participants; and b. the collection of Participant contributions as referred to in paragraph (1) letter b and the results of their development, minus operational costs, are paid at once when the Participant stops working.
Article 106
(1) In the event that DPPK operates PMLMP, the PDP of the relevant DPPK must contain the frequency and due dates for PMLMP contribution payments.
(2) The frequency of contributions as referred to in paragraph (1) is at least once a year.

Article 107
(1) Contributions for the funding of PMLMP operated by DPPK are established in the Actuarial Statement.
(2) Participant contributions as referred to in Article 105 paragraph (1) letter b are paid to the DPPK through the Employer.
(3) In the event that there are Participant contributions as referred to in paragraph (2), the Employer:
a. is the collector of Participant contributions; and b. must deposit Participant contributions to the DPPK.
Article 108
The Employer must deposit PMLMP contributions operated by DPPK, which come from the Employer and Participants, to the DPPK in accordance with the contributions established in the Actuarial Statement. Fourth Section Funding of DPPK Operating PMLIP
Article 109
(1) In the event that DPPK operates PMLIP, the funding of PMLIP is the responsibility of the Employer.
(2) The Board of Directors of the DPPK operating PMLIP must calculate and report the adequacy of PMLIP funds in the annual financial report.
(3) The adequacy of funds as referred to in paragraph (2) is assessed based on contributions deposited to the DPPK.
Article 110
(1) The funding sources for DPPK operating PMLIP consist of:
a. Employer contributions; and/or b. Participant contributions.
(2) In addition to the funding sources as referred to in paragraph (1), the funding sources for DPPK operating PMLIP can come from a certain percentage of the results of the development of the Pension Program, for DPPK that have first-level funding quality as referred to in Article 91 paragraph (2) letter a or second-level funding quality as referred to in Article 91 paragraph (2) letter b. (3) The percentage as referred to in paragraph (2) can only be calculated at most 20% (twenty percent) of the results of the development of the Pension Program. (4) DPPK operating PMLIP can only use funding sources from a certain percentage of the results of the development of the Pension Program as referred to in paragraph (2) if added with:
a. Employer contributions as referred to in paragraph (1) letter a; or b. Employer contributions as referred to in paragraph (1) letter a and Participant contributions as referred to in paragraph (1) letter b.

(5) The mechanism for using the results of the development of the Pension Program as referred to in paragraph (2) must be established in the PDP.
(6) In the event that DPPK provides PMLIP in the form of severance pay funds, the funding sources as referred to in paragraph (1) can only come from Employer contributions. (7) In the event that a Participant stops working, the following rules apply:
a. the collection of Employer contributions as referred to in paragraph (1) letter a for Participants who stop working, can be used as Employer contributions for other Participants; and b. the collection of Participant contributions as referred to in paragraph (1) letter b and the results of their development, minus operational costs, are paid at once when the Participant stops working.
Article 111
(1) Contributions for the funding of PMLIP operated by DPPK are established in the PDP.
(2) Participant contributions as referred to in Article 110 paragraph (1) letter b are paid to the DPPK through the Employer.
(3) In the event that there are Participant contributions as referred to in paragraph (2), the Employer:
a. is the collector of Participant contributions; and b. must deposit Participant contributions to the DPPK.
(4) The frequency and due dates for PMLIP contribution payments operated by DPPK are established in the PDP.
Article 112
The Employer must deposit PMLIP contributions operated by DPPK, both those coming from the Employer and Participants, to the DPPK in accordance with the contributions established in the PDP. Fifth Section Funding of DPLK Operating Other Benefit Programs
Article 113
(1) In the event that DPLK operates Other Benefit Programs, the funding of Other Benefit Programs is the responsibility of the Employer and/or Participants.
(2) The responsibility of the Employer and/or Participants for DPLK as referred to in paragraph (1) is outlined in a written statement.
(3) The written statement as referred to in paragraph (2) must at least contain the following provisions:
a. the amount of contributions; and b. the due date of contributions.
(4) In the event that the written statement as referred to in paragraph (3) is changed and causes a reduction in the amount of contributions, the written statement in question cannot have retroactive effect. (5) For the Employer, the written statement as referred to in paragraph (3) and changes as referred to in paragraph (4) are submitted to the DPLK and announced to eligible employees.
Article 114
DPLK must possess and administer the written statement as referred to in Article 113 paragraph (3) and its changes as referred to in Article 113 paragraph (4).
Article 115
(1) Participants can pay contributions for Other Benefit Programs to DPLK, by:
a. direct deposit by the Participant to DPLK; or b. deposit through the Employer.
(2) In the event that the Participant pays contributions directly to DPLK as referred to in paragraph (1) letter a, the amount of contributions is established in the written statement as referred to in Article 113 paragraph (3) from the Participant. (3) In the event that the Participant pays contributions to DPLK through the Employer as referred to in paragraph (1) letter b, the amount of the Participant's contributions and the due date of the Participant's contributions must be outlined in the written statement as referred to in Article 113 paragraph (3) from the Employer. (4) The Employer must deposit Participant contributions as referred to in paragraph (3) and Employer contributions in accordance with the written statement as referred to in Article 113 paragraph (3) and its changes as referred to in Article 113 paragraph (4) to the DPLK. Sixth Section Administrative Sanctions
Article 116
(1) Violations of the provisions as referred to in Article 91 paragraph (1), Article 101 paragraph (4), Article 103 paragraph (2), paragraph (5), Article 107 paragraph (3) letter b, Article 108, Article 109 paragraph (2), Article 111 paragraph (3) letter b, Article 112, Article 114, and/or Article 115 paragraph (3), paragraph (4), of this Financial Services Authority Regulation are subject to administrative sanctions in the form of:
a. written warning; b. prohibition to operate certain programs; and/or
c. downgrade of health status.
(2) In the event that a violation of the provisions as referred to in paragraph (1) occurs but the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction. Seventh Section Re-evaluation of Principal Parties
Article 117
In addition to imposing administrative sanctions as referred to in Article 116 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of principal parties.
CHAPTER VI
PENSION FUNDS IN SPECIAL CONDITIONS
First Section
Termination of Participant Groups and Founding Partners
Article 118
(1) The termination of Founding Partners in DPPK operating PPMP is subject to the following provisions:
a. if the Founding Partner continues to operate the PPMP, the amount of funds that are the rights of the Founding Partner's Participants is established by the Actuary at least equal to the Solvency Liability of the Founding Partner on the date of termination of the Founding Partner; or b. if the Founding Partner does not continue to operate the PPMP, the amount of funds that are the rights of the Founding Partner's Participants is equal to the agreement between the Employer and Participants. (2) The agreement between the Employer and Participants as referred to in paragraph (1) letter b must at least contain:
a. Participant rights; and b. the use of Surplus, if any.
(3) Funds that are the rights of Founding Partner Participants whose membership ends at the DPPK must be transferred in the form of cash funds.
(4) Founding Partners must settle the shortfall in funds that are the rights of Founding Partner Participants as referred to in paragraph (1) by:
a. making payments to the DPPK before the termination of the Founding Partner; or b. making payments to the Pension Fund that receives the membership from the Founding Partner after the termination of the Founding Partner. (5) Pension Benefit payments for retirees, Widows/Widowers, or children of Founding Partners as referred to in paragraph (1) can be continued at the Pension Fund that receives the transfer or purchased as an annuity or Sharia annuity at a life insurance company or Sharia life insurance company. (6) The provisions as referred to in paragraphs (1) to (5) apply mutatis mutandis to the termination of DPPK participant groups. Second Section Transfer of Pension Fund Membership
Article 119
(1) Pension Funds can transfer membership to another Pension Fund that is not for the termination of participant groups and Founding Partners as referred to in Article 118. (2) In the event that the Pension Fund making the transfer as referred to in paragraph (1) operates PPMP, the transferred funds are at least equal to the Solvency Liability. (3) In the event that the Pension Fund making the transfer as referred to in paragraph (1) operates PPMP and has a Solvency Shortfall and after the transfer experiences a decrease in the Funding Ratio, the Employer must pay Additional Contributions at once to maintain the Funding Ratio as before the transfer occurred. (4) In the event that the Pension Fund making the transfer as referred to in paragraph (1) operates PPIP, the transferred funds are equal to the accumulation of contributions and the results of their development. (5) Pension Funds making the transfer as referred to in paragraph (1) operating Participant Voluntary Contributions, the following rules apply:
a. the accumulation of Participant Voluntary Contributions and the results of their development are transferred to another Pension Fund that receives the transfer of membership as referred to in paragraph (1) that operates Participant Voluntary Contributions; or b. the accumulation of Participant Voluntary Contributions and the results of their development are transferred to a DPLK or paid to the Participant at once on the condition that the other Pension Fund that receives the transfer as referred to in paragraph (1) does not operate Participant Voluntary Contributions. (6) The transfer of funds as referred to in paragraph (1) must be carried out at once. (7) If the Pension Fund making the transfer as referred to in paragraph (1) operates other Pension Benefits and/or other benefits, the following rules apply:
a. the funds for other Pension Benefits and/or other benefits are transferred to another Pension Fund that operates the same program if the other Pension Fund that receives the transfer operates other Pension Benefits and/or other benefits; or b. the funds for other Pension Benefits and/or other benefits are transferred to another party that can operate other Pension Benefits and other benefits in accordance with statutory regulations if the other Pension Fund that receives the transfer does not operate other Pension Benefits and/or other benefits. (8) Pension Funds making the transfer of membership as referred to in paragraph (1) must provide information to Participants no later than 1 (one) month since the transfer was carried out, which must at least contain:
a. the receiving Pension Fund of the transfer; b. the amount of transferred Participant rights; and
c. the effective date of the transfer.
(9) In the event that the transfer of membership as referred to in paragraph (1) from a DPLK is carried out for Participants included by the Employer and there are Participant contributions, the transfer must first take into account the opinions of the Participants. Third Section Changes in Pension Programs
Article 120
(1) In the event that there is a change in the Pension Program at a DPPK from PPMP to PPIP, the Employer's obligation to Participants up to the date of the change in the Pension Program is equal to the agreement between the Employer and Participants. (2) The agreement between the Employer and Participants as referred to in paragraph (1) is outlined in a written document at least containing:
a. Change of Pension Program from PPMP to PPIP; b. Participant rights; and
c. the use of Surplus, if any,
included in the application for PDP changes.
Article 121
(1) In the event that a DPPK operating PPMP has changed to operating PPIP and at the time of the change in the Pension Program has assets in the form of:
a. assets in dispute in court, or controlled or seized by competent parties; b. contributions, whether partially or fully, that on the actuarial valuation date had not been deposited to the DPPK operating PPMP for more than 3 (three) months since their due date;
c. types of assets categorized as other receivables and other assets; and
d. investments that do not comply with regulations regarding Pension Fund investments, these assets can only be used for future Employer contributions and/or to increase Participant balances. (2) The use of assets for future Employer contributions and/or to increase Participant balances can only be done if the assets no longer meet the provisions as referred to in paragraph (1).
Article 122
(1) In the event that there is a change in the Pension Program at a DPPK from PPIP to PPMP, the Pension Benefit formula in the PDP of the PPMP DPPK resulting from the program change must guarantee that Participant rights upon stopping work are not less than:
a. the result of the accumulation of Participant funds on the date of the program change; and b. Participant contributions and the results of their development since the program change until the Participant is entitled to Pension Benefits. (2) For DPPKs that change the Pension Program as referred to in paragraph (1), the PDP must contain the nominal balance value of each Participant as of the date of the program change based on financial reports audited by a public accountant. (3) DPPKs that change the program from PPIP to PPMP must conduct an actuarial valuation in determining PPMP contributions. Fourth Section Merger and Separation of DPPK
Article 123
(1) DPPK can carry out a merger:
a. due to the merger of Employers; or b. not due to the merger of Employers.
(2) In the event that the merger of DPPK occurs due to the merger of Employers as referred to in paragraph (1) letter a, the Employer receiving the merger is responsible for the Minimum Contributions that must be deposited before the merger. (3) In the event that the merger of DPPK occurs not due to the merger of Employers as referred to in paragraph (1) letter b, each Employer is responsible for the Minimum Contributions that must be deposited before the merger. (4) In the event that a DPPK operating PPMP will carry out a merger and has a Solvency Shortfall, the Employer is responsible for obligations related to Participant working periods, as established in the PDP before the merger takes effect.
Article 124
If the DPPK merging operates Participant Voluntary Contributions but the DPPK receiving the

merger does not administer Voluntary Contributions Participants, the provisions on the accumulation of Voluntary Contributions Participants and the development thereof shall be paid to the Participants in a lump sum.
Article 125
(1) Employers who separate the DPPK must be responsible for the Minimum Contributions that must be deposited before the separation until the date of the Employer's statement of separation. (2) In the event that the separation of the DPPK administering the PPMP results in the formation of a DPPK administering the PPIP, the obligation of the separating Employer to the Participants until the date of the separation statement is equal to the agreement between the Employer and the Participants. (3) The agreement between the Employer and the Participants as referred to in paragraph (2) must be set forth in a written document containing at least:
a. the separation of the DPPK administering the PPMP resulting in the formation of a DPPK administering the PPIP; b. the rights of the Participants; and
c. the use of Surplus, if any,
attached to the application for the establishment of a DPPK administering the PPIP.
Fifth Section
Administrative Sanctions
Article 126
(1) Violations of the provisions as referred to in Article 118 paragraph (4), Article 119 paragraph (3), paragraph (6), paragraph (8), paragraph (9), Article 123 paragraph (2), paragraph (3), and/or Article 125 paragraph (1) of this Financial Services Authority Regulation shall be subject to administrative sanctions in the form of:
a. written warning; b. prohibition to administer specific programs; and/or
c. downgrade of health level.
(2) In the event that a violation of the provisions as referred to in paragraph (1) occurs but the violation has been remedied, the Financial Services Authority shall issue a written warning sanction that expires automatically. (3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority shall revoke the written warning sanction. Sixth Section Re-evaluation of Related Parties
Article 127
In addition to imposing administrative sanctions as referred to in Article 126 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of related parties.

CHAPTER VII
ACTUARIAL REPORTS
First Section
Actuarial Methods and Assumptions
Article 128
(1) The obligations of DPPK administering the PPMP and DPPK administering the PMLMP are calculated using reasonable and justifiable actuarial methods and Actuarial Assumptions. (2) The selection of actuarial methods and Actuarial Assumptions as referred to in paragraph (1) is conducted according to actuarial practice standards for Pension Funds applicable in Indonesia.
Article 129
Actuarial Assumptions used by Actuaries must reflect assessments in accordance with the purpose of the actuarial valuation.
Article 130
(1) DPPK administering the PPMP and DPPK administering the PMLMP must ensure that the Actuary has disclosed in detail in the Actuarial Report regarding the Actuarial Assumptions used to calculate:
a. Actuarial Present Value; b. Solvency Liabilities; and
c. Present Value of potential payments for other benefits,
accompanied by an explanation regarding the selection of such assumptions.
(2) Actuaries must make a statement regarding Actuarial Assumptions in the Actuarial Statement, stating that the assumptions used are justifiable, in accordance with actuarial practice standards for Pension Funds applicable in Indonesia, and the condition of the respective Pension Fund. Second Section Actuarial Report Submission Obligations
Article 131
DPPK administering the PPMP and DPPK administering the PMLMP must submit Actuarial Reports to the Financial Services Authority.
Article 132
(1) In the event that the Actuarial Report contains incorrect information regarding the Employer's obligation to fund the Pension Program or Other Benefit Program, the Financial Services Authority has the authority to order the Management Board to submit a new Actuarial Report.

(2) The actuarial valuation date used in the new Actuarial Report as referred to in paragraph (1) is determined by the Financial Services Authority.
(3) In the event that the Actuary who prepared the Actuarial Report as referred to in paragraph (1) is unable or unwilling to prepare a new Actuarial Report, the Supervisory Board is prohibited from appointing such Actuary to prepare the Actuarial Report for the subsequent period. Third Section Actuarial Reports of DPPK Administering PPMP and DPPK Administering PMLMP
Article 133
(1) DPPK administering the PPMP and DPPK administering the PMLMP must conduct actuarial valuations at least every 3 (three) years.
(2) In the event that there are:
a. changes to the PDP; or b. requests from the Financial Services Authority, DPPK administering the PPMP and DPPK administering the PMLMP must conduct actuarial valuations. (3) Actuarial Reports in actuarial valuations as referred to in paragraph (1) and paragraph (2) must contain at least:
a. Actuarial Statement; b. the actuarial valuation date reported and the previous actuarial valuation date;
c. the purpose of preparing the Actuarial Report;
d. summary of the PDP and changes occurring in the PDP since the previous actuarial valuation date; e. summary of the number of Participants and the number of Beneficiaries along with changes occurring since the previous actuarial valuation date; f. the actuarial valuation method used accompanied by an explanation regarding the selection of such method; g. Actuarial Assumptions used in calculating obligations and changes from those used in the previous actuarial valuation, accompanied by an explanation regarding the selection and changes of such assumptions; h. Funding Assets value for DPPK administering the PPMP;
i. analysis of Surplus or Deficit changes for DPPK administering the PPMP;
j. program asset value from PMLMP; k. description of the determination of PMLMP program asset value;
l. overall actuarial valuation results, both for the reported actuarial valuation date and previous dates;
m. analysis of PMLMP funding adequacy changes; n. name, address, and explanation of the Actuary regarding the signing of the Actuarial Statement in the previous Actuarial Report;

o. projection of the Present Value of potential Other Benefit Program payments monthly for at least the first 3 (three) years for DPPK administering the PMLMP; p. projection of Actuarial Present Value monthly for at least the first 3 (three) years for DPPK administering the PPMP; q. projection of Solvency Liabilities monthly for at least the first 3 (three) years for DPPK administering the PPMP; r. allocation of Actuarial Present Value based on maturity duration for DPPK administering the PPMP; s. sensitivity scenario of worsening funding conditions for DPPK administering the PPMP; and t. details of Participant rights in the event of program changes or separation of DPPK administering the PPMP resulting in the formation of a DPPK administering the PPIP. (4) In the event that DPPK administering the PPMP has third-tier funding quality as referred to in Article 91 paragraph (2) letter c, the projection of Actuarial Present Value as referred to in paragraph (3) letter p and projection of Solvency Liabilities as referred to in paragraph (3) letter q are made for 1 (one) year ahead. (5) In the event that it is necessary, DPPK administering the PPMP may conduct ad hoc actuarial valuations.
Article 134
(1) The actuarial valuation date for Actuarial Reports prepared for the approval of the establishment of DPPK administering the PPMP is the date of the written statement of the Founder regarding the Establishment of the DPPK. (2) The actuarial valuation date for Actuarial Reports prepared for the dissolution of DPPK administering the PPMP is the effective date of the dissolution of the DPPK. (3) The actuarial valuation date for Actuarial Reports prepared in the application for approval of changes to the PDP related to the funding of PPMP and PMLMP is at most 3 (three) months before the date of the PDP change application. (4) The actuarial valuation date for Periodic Actuarial Reports for DPPK administering the PPMP and DPPK administering the PMLMP is December 31.
Article 135
(1) In the event that the actuarial valuation results show that DPPK administering the PPMP has third-tier funding quality as referred to in Article 91 paragraph (2) letter c, DPPK administering the PPMP must conduct the next actuarial valuation at the latest for the position 1 (one) year from the date the actuarial valuation was conducted. (2) In the event that the actuarial valuation as referred to in paragraph (1) is conducted for a position after June 30, the next actuarial valuation is conducted at the latest by the end of the following fiscal year.
Article 136
(1) The Actuarial Statement as referred to in Article 133 paragraph (3) letter a must contain:
a. a statement that the data received by the Actuary, to the best of their knowledge, is complete and justifiable for the purpose of preparing the Actuarial Report, and has undergone testing to assess its reliability; b. a statement that the Actuarial Report in question:

complies with laws and regulations in the field of Pension Funds;
has met Employer requirements;
has been prepared based on the PDP; and
has been prepared based on actuarial practice standards for Pension Funds applicable in Indonesia;
c. confirmation regarding Actuarial Present Value, Solvency Liabilities, Funding Assets, Surplus or Deficit, Solvency Ratio, Funding Ratio, and funding quality for DPPK administering the PPMP;
d. confirmation regarding the program asset value of PMLMP, Present Value of potential payments for Other Benefits, and PMLMP funding adequacy; e. confirmation regarding the amount of funding required in the administration of PMLMP; and f. confirmation regarding:
the amount of Normal Contributions that must be paid until the end of the first fiscal year after the actuarial valuation date, detailed for the portion to be paid by Participants and Employers;
the percentage of Normal Contributions against Basic Pension Income for the year following the fiscal year as referred to in number 1, up to the submission of the next Actuarial Report;
the portion of Normal Contributions whose fulfillment becomes the responsibility of the Employer that can be paid from Surplus occurring, along with the period of its use; and
confirmation regarding the amount of Additional Monthly Contributions along with the payment period,
for DPPK administering the PPMP.

(2) In the event that DPPK administering the PPMP has Co-Founders, and Employers do not intend to bear the financing of the Pension Program equally, the Actuarial Statement must contain the confirmation as referred to in paragraph (1) letters c through f for each Employer. (3) Actuarial Statements prepared for the approval of PDP changes or transfer of membership must contain information as referred to in paragraph (1) letters c through f for the state before and after the implementation of such changes.
Article 137
(1) Actuarial Reports as referred to in Article 133 paragraph (3) must be accompanied by a Founder's Statement signed by the Founder.
(2) The Founder's Statement as referred to in paragraph (1) must contain statements:
a. that the data and PDP submitted to the Actuary are complete and correct; b. that the Founder is able to pay contributions in accordance with the minimum funding stated in the Actuarial Statement;
c. that the Founder intends to use Surplus as referred to in Article 101 paragraph (1) to reduce Employer Normal Contributions, in the event that there is Surplus for DPPK administering the PPMP; and
d. that the Founder intends to use PMLMP funding excess occurring to reduce PMLMP contributions, in the event that there is PMLMP funding excess.
(3) In the event that DPPK administering the PPMP has Co-Founders, DPPK administering the PPMP must have statements as referred to in paragraph (2) letter b from each Co-Founder for each actuarial valuation as referred to in Article 133. (4) In the event that DPPK administering the PMLMP has Co-Founders, the Actuarial Report as referred to in Article 133 paragraph (3) must be accompanied by statements as referred to in paragraph (2) letter b for each Co-Founder signed by the Co-Founder. (5) In the event that DPPK administering the PPMP and DPPK administering the PMLMP have Co-Founders, and Employers intend to bear the financing of the Pension Program equally, the Founder's Statement as referred to in paragraph (2) letter c and paragraph (2) letter d must contain:
a. confirmation of the use of Surplus representing the statement of all Employers for DPPK administering the PPMP; and

b. confirmation of the use of PMLMP funding excess representing the statement of all Employers.
(6) In the event that DPPK administering the PPMP has Co-Founders, and Employers do not intend to bear the financing of the Pension Program equally, the Founder's Statement as referred to in paragraph (2) letter c must contain confirmation of the use of Surplus for each Employer experiencing Surplus. (7) In the event that DPPK administering the PMLMP has Co-Founders, and Employers do not intend to bear the financing of the Pension Program equally, the Founder's Statement as referred to in paragraph (2) letter d must contain confirmation of the use of PMLMP funding excess for each Employer experiencing PMLMP funding excess. (8) In the event that DPPK administering the PPMP has Co-Founders, and Employers do not intend to bear the financing of the Pension Program equally, DPPK may transfer part or all of the Surplus among Employers provided that Employers transferring part or all of the Surplus must still maintain the Fund Condition as Funded. (9) In the event that DPPK administering the PMLMP has Co-Founders and does not bear the financing of the Pension Program equally, DPPK administering the PMLMP may transfer part or all of the PMLMP funding excess among Employers provided that Employers transferring part or all of the PMLMP funding excess must still maintain PMLMP funding adequacy.
Article 138
Actuarial Reports from DPPK administering the PPMP and DPPK administering the PMLMP must include information regarding the general funding condition of the DPPK containing at least:
a. assets; b. obligations;
c. funding position;
d. funding quality; and e. Funding Ratio.
Fourth Section
Actuarial Practice Standards
Article 139
(1) Actuarial practice standards applicable in Indonesia as referred to in Article 94 paragraph (2) letter b, Article 128 paragraph (2), Article 130 paragraph (2), and/or Article 136 paragraph (1) letter b number 4, are actuarial practice standards established by an Actuary association recognized by the ministry administering government affairs in the field of state finance. (2) Actuarial practice standards as referred to in paragraph (1) for actuarial valuation of DPPK administering the PPMP must regulate the determination of technical interest rates reasonably. Fifth Section Submission of Actuarial Reports
Article 140
(1) Pension Funds must submit every Actuarial Report used as the basis for determining Employer contributions to the Financial Services Authority.
(2) Submission of Actuarial Reports as referred to in paragraph (1) is submitted to the Financial Services Authority online through the Financial Services Authority's data communication network system. (3) With the submission of Actuarial Reports to the Financial Services Authority online as referred to in paragraph (2), Pension Funds do not need to submit printed documents. (4) Actuarial Report documents submitted online are color scans of the original documents. (5) In the event that the Financial Services Authority's data communication network system as referred to in paragraph (2) is not yet available, experiences technical disturbances, or in a state of force majeure, Actuarial Reports are submitted online in the form of electronic documents via electronic mail designated by the Financial Services Authority. (6) In the event that technical disturbances or force majeure as referred to in paragraph (5) occur, the Financial Services Authority announces on the Financial Services Authority website or via electronic mail to the Pension Funds. (7) Pension Funds must declare that documents submitted online or via electronic mail are true and identical to the original documents. (8) Submission of Actuarial Reports is conducted in the form of electronic documents via electronic mail addressed to:
Executive Head of Insurance, Assurance, and Pension Fund Supervision u.p. Director of Pension Fund Supervision.
(9) In the event that the Financial Services Authority's data communication network system or electronic mail experiences technical disturbances as referred to in paragraph (5) or Pension Funds experience disturbances so that they cannot submit Actuarial Reports, Actuarial Reports are submitted offline accompanied by written notification along with supporting documents in the form of reports using other electronic data storage media, and sent to the Financial Services Authority via letters signed by the Management Board. (10) Submission of Actuarial Reports offline as referred to in paragraph (9) is conducted in one of the following ways:
a. handed directly to the Financial Services Authority office; or b. sent through a courier service company.
(11) Pension Funds are deemed to have submitted Actuarial Reports with the following conditions:
a. for online submission via:

the Financial Services Authority's data communication network system is evidenced by a receipt from the Financial Services Authority's data communication network system; or
electronic mail to the Financial Services Authority is evidenced by proof of electronic mail delivery, in the event that delivery through the data communication network cannot be performed; or
b. for offline submission, evidenced by a receipt from the Financial Services Authority.
Article 141
Submission of Actuarial Reports for the approval of Pension Fund establishment or approval of PDP changes serves as the basis for determining the obligation to submit subsequent Actuarial Reports.
Article 142
(1) Pension Funds must submit Periodic Actuarial Reports to the Financial Services Authority at the latest by April 30 of the following year.
(2) Pension Funds must submit ad hoc Actuarial Reports to the Financial Services Authority at the latest 4 (four) months from the actuarial valuation date, if the Actuarial Report is used as the basis for contribution payments. Sixth Section Administrative Sanctions
Article 143
(1) Violations of the provisions as referred to in Article 130 paragraph (2), Article 131, Article 132 paragraph (3), Article 133 paragraph (1), paragraph (2), paragraph (3), Article 135 paragraph (1), Article 137 paragraph (2), paragraph (3), Article 138, Article 140 paragraph (1), and/or Article 142 of this Financial Services Authority Regulation shall be subject to administrative sanctions in the form of:
a. written warning; b. prohibition to administer specific programs; and/or
c. downgrade of health level.
(2) Violations of the provisions as referred to in Article 142 are subject to additional administrative sanctions in the form of administrative fines of Rp100,000.00 (one hundred thousand rupiah) per day of delay and at most Rp36,000,000.00 (thirty-six million rupiah). (3) In the event that a violation of the provisions as referred to in paragraph (1) occurs but the violation has been remedied, the Financial Services Authority shall issue a written warning sanction that expires automatically. (4) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority shall revoke the written warning sanction. Seventh Section Re-evaluation of Related Parties
Article 144
In addition to imposing administrative sanctions as referred to in Article 143 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of related parties.
CHAPTER VIII
ADMINISTRATION OF PENSION PROGRAMS BASED ON SHARIA PRINCIPLES First Section Agreements (Akad)
Article 145
For Pension Funds administering Pension Programs based on Sharia Principles, contribution payments, Pension Benefits, and asset management must be conducted in accordance with Sharia Principles.
Article 146
(1) Administration of Pension Programs based on Sharia Principles must use agreements (Akad).
(2) Agreements as referred to in paragraph (1) consist of:
a. hibah bi syarth agreement; b. hibah muqayyadah agreement;
c. wakalah agreement;
d. wakalah bil ujrah agreement; e. mudharabah agreement; f. ijarah agreement; and/or g. other agreements issued by institutions having authority in determining fatwas in the field of Sharia. (3) Agreements as referred to in paragraph (2) letters a and/or b are used between Employers and Participants for contribution payments. (4) Agreements as referred to in paragraph (2) letters c and/or d are used between Employers or Participants, and Pension Funds administering Pension Programs based on Sharia Principles. (5) Agreements as referred to in paragraph (2) letters d and/or e are used between Pension Funds administering Pension Programs based on Sharia Principles and third parties administering activities based on the delegation of authority from Pension Funds administering Pension Programs based on Sharia Principles with remuneration/fee. (6) Agreements as referred to in paragraph (2) letter f are used between Pension Funds administering Pension Programs based on Sharia Principles and third parties for the transfer of rights to use (benefit) over goods or services, for a certain period with payment of rent (ujrah).
Article 147
Pension Funds administering Pension Programs based on Sharia Principles may use agreements other than those referred to in Article 146 paragraph (2) after first:
a. obtaining approval from the Sharia Supervisory Board; b. obtaining validation from institutions having authority in determining fatwas in the field of Sharia; and
c. reporting the use of such agreements to the Financial Services Authority.
Second Section
Administrative Sanctions
Article 148
(1) Violations of the provisions as referred to in Article 145 and/or Article 146 paragraph (1) of this Financial Services Authority Regulation shall be subject to administrative sanctions in the form of:
a. written warning; b. prohibition to administer specific programs; and/or
c. downgrade of health level.
(2) In the event that a violation of the provisions as referred to in paragraph (1) occurs but the violation has been remedied, the Financial Services Authority shall issue a written warning sanction that expires automatically. (3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority shall revoke the written warning sanction. Third Section Re-evaluation of Related Parties
Article 149
In addition to imposing administrative sanctions as referred to in Article 148 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of related parties.

CHAPTER IX
PENSION FUND INVESTMENTS
First Section
Types of Investments
Article 150
(1) Pension Funds are prohibited from placing investments, except in the following types of investments:
a. call deposits at Banks; b. time deposits at Banks;
c. certificates of deposit at Banks;
d. securities issued by Bank Indonesia; e. Government Securities; f. shares listed on the Indonesia Stock Exchange; g. corporate bonds listed on the Indonesia Stock Exchange; h. Mutual Funds, consisting of:

Money Market Mutual Funds, Fixed Income Mutual Funds, Mixed Mutual Funds, and Equity Mutual Funds;
Protected Mutual Funds, Guaranteed Mutual Funds, and Index Mutual Funds;
Mutual Funds in the form of collective investment contracts with limited participation; and/or
Mutual Funds whose shares or participation units are traded on the Indonesia Stock Exchange;
i. Medium Term Notes (MTN);
j. asset-backed securities; k. real estate investment funds in the form of collective investment contracts;
l. options contracts and forward contracts for securities traded on the Indonesia Stock Exchange;
m. REPO; n. direct investments in Indonesia; o. land and/or buildings in Indonesia; p. regional bonds; and/or q. infrastructure investment funds in the form of collective investment contracts. (2) The types of Pension Fund investments referred to in paragraph (1) also include types of investments using Sharia Principles if there are types of investments using Sharia Principles. (3) For Pension Fund Administrators (DPPK) managing PPMP programs that place investments not in accordance with the types of investments referred to in paragraph (1), such investments shall not be counted in the Wealth for Financing. (4) Regulations regarding the valuation basis for types of investments consisting of:
a. regional bonds as referred to in paragraph (1) letter p follow the regulations regarding the valuation basis for corporate bonds listed on the Indonesia Stock Exchange as referred to in paragraph (1) letter g; and b. infrastructure investment funds in the form of collective investment contracts as referred to in paragraph (1) letter q follow the regulations regarding the valuation basis for real estate investment funds in the form of collective investment contracts as referred to in paragraph (1) letter k. (5) Regulations regarding the valuation basis for each type of investment as referred to in paragraph (1) and paragraph (2) are determined by the Financial Services Authority (OJK).

Second Section
Pension Fund Investment Restrictions
Article 151
(1) Investments in corporate bonds listed on the Indonesia Stock Exchange as referred to in Article 150 paragraph (1) letter g must be made in corporate bonds that have an investment-grade rating from a securities rating company that has obtained a business license from the Financial Services Authority (OJK). (2) Investments in asset-backed securities and real estate investment funds in the form of collective investment contracts as referred to in Article 150 paragraph (1) letters j and k must meet the following requirements:
a. have obtained an effectiveness statement from the Financial Services Authority (OJK); b. have an investment-grade rating from a securities rating company that has obtained a business license from the Financial Services Authority (OJK); and
c. are conducted through a public offering as regulated in capital market laws and regulations.
Article 152
(1) Investments in options contracts and forward contracts for securities traded on the Indonesia Stock Exchange as referred to in Article 150 paragraph (1) letter l:
a. are prohibited for speculative purposes; and b. must be placed in a short position for hedging existing Pension Fund investments.
(2) Pension Funds must prepare a hedging strategy document before making investments in options contracts and forward contracts for securities traded on the Indonesia Stock Exchange.
Article 153
(1) Direct investments in Indonesia as referred to in Article 150 paragraph (1) letter n must be made in shares issued by limited liability companies established under Indonesian law, and such shares are not listed on the Indonesia Stock Exchange. (2) In the event that a Pension Fund makes direct investments in Indonesia as referred to in paragraph (1) and becomes the largest shareholder or holds at least 25% (twenty-five percent) of the shares in a limited liability company, the Pension Fund must have and exercise its rights to:
a. place representatives in the membership of the board of commissioners of the limited liability company; and b. obtain unlimited access to all material information related to the entire company. (3) In the event that the shares owned by the Pension Fund in the limited liability company as referred to in paragraph (1) do not exceed 50% (fifty percent), the Pension Fund's rights as referred to in paragraph (2) must be stipulated in a written agreement with other shareholders of the limited liability company.
Article 154
(1) Pension Funds making investments in Mutual Funds in the form of collective investment contracts with limited participation as referred to in Article 150 paragraph (1) letter h number 3, investments in real estate investment funds in the form of collective investment contracts as referred to in Article 150 paragraph (1) letter k, and investments in infrastructure investment funds in the form of collective investment contracts as referred to in Article 150 paragraph (1) letter q must meet the following requirements:
a. have a minimum investment amount of IDR 1,000,000,000,000.00 (one trillion rupiah); b. choose instruments managed by Investment Managers with the 10 (ten) largest assets under management; and
c. have Board members or employees specializing in investments who hold professional certifications in the field of capital markets.
(2) Pension Funds making investments in MTN as referred to in Article 150 paragraph (1) letter i and investments in REPO as referred to in Article 150 paragraph (1) letter m must meet the following requirements:
a. have a minimum investment amount of IDR 1,000,000,000,000.00 (one trillion rupiah); and b. have Board members or employees specializing in investments who hold professional certifications in the field of capital markets. (3) Investments in REPO as referred to in Article 150 paragraph (1) letter m must be made in REPO that meet the following requirements:
a. use standardized contract agreements by the Financial Services Authority (OJK); b. collateral types are limited to Government Securities and/or securities issued by Bank Indonesia;
c. maturity does not exceed 90 (ninety) days;
d. REPO value is at most 80% (eighty percent) of the market value of the collateral securities; and e. REPO transactions are registered with the Indonesia Central Securities Depository or Bank Indonesia Scriptless Securities Settlement System. (4) Pension Funds making investments in shares listed on the Indonesia Stock Exchange as referred to in Article 150 paragraph (1) letter f must have Board members or employees specializing in investments who hold professional certifications in the field of capital markets.
Article 155
(1) Investments in land in Indonesia and/or buildings in Indonesia as referred to in Article 150 paragraph (1) letter o must:
a. be accompanied by land and/or building ownership certificates in the name of the Pension Fund; and b. generate income for the Pension Fund or increase in value due to construction, use, and/or management by third parties conducted through transactions based on prevailing market prices. (2) Transactions as referred to in paragraph (1) with a minimum transaction value of IDR 100,000,000 (one hundred million rupiah) must be based on a written agreement in the form of a notarial deed. (3) Pension Funds may conduct transactions for the rental or sale of land, buildings, or other fixed assets to:
a. the Board of Directors, Founders, Co-Founders, controllers of the Founders, or Custodian Banks; b. business entities where more than 25% (twenty-five percent) of the shares are owned by persons or entities consisting of Founders, Co-Founders, controllers of the Founders, Board of Directors, Custodian Banks, or labor unions whose members are Participants of the respective Pension Fund;
c. subsidiary companies; and/or
d. executive officials of entities as referred to in letters a and b, and their families up to the second degree by direct or collateral lines, including in-laws and siblings-in-law, only using fair market prices determined by independent appraisers. (4) The determination of fair market prices by independent appraisers as referred to in paragraph (3) does not apply to rental transactions valued at less than IDR 100,000,000 (one hundred million rupiah). (5) Investments in land and/or buildings in Indonesia are prohibited on land and/or buildings that are mortgaged, in dispute, and/or blocked by other parties. (6) Placements of investments with parties as referred to in paragraph (3) may be made in financial instruments listed or traded in the capital market and money market.
Article 156
(1) Investments in Mutual Funds in the form of collective investment contracts with limited participation as referred to in Article 150 paragraph (1) letter h number 3 are prohibited from exceeding 10% (ten percent) of the total Pension Fund investments. (2) Investments in MTN as referred to in Article 150 paragraph (1) letter i are prohibited from exceeding 10% (ten percent) of the total Pension Fund investments. (3) Direct investments in Indonesia as referred to in Article 150 paragraph (1) letter n are prohibited from exceeding 15% (fifteen percent) of the total Pension Fund investments. (4) Investments in land and/or buildings in Indonesia as referred to in Article 150 paragraph (1) letter o are prohibited from exceeding 20% (twenty percent) of the total Pension Fund investments.
Article 157
(1) The total amount of investments as referred to in Article 150 paragraph (1) letters a through e, letters g through i, letters k through o, letter q, and letter r with 1 (one) party is prohibited from exceeding 20% (twenty percent) of the total Pension Fund investments. (2) All Pension Fund investments may be placed in Government Securities as referred to in Article 150 paragraph (1) letter e. (3) Without prejudice to the provisions as referred to in paragraph (1) and paragraph (2), the total amount of investments in:
a. direct investments in Indonesia as referred to in Article 150 paragraph (1) letter n, with 1 (one) party each, is prohibited from exceeding 10% (ten percent) of the total Pension Fund investments; b. REPO as referred to in Article 150 paragraph (1) letter m for each counterparty is prohibited from exceeding 2% (two percent) of the total Pension Fund investments, and in total is prohibited from exceeding 5% (five percent) of the total Pension Fund investments;
c. regional bonds as referred to in Article 150 paragraph (1) letter p for each issuer is at most 10% (ten percent) of the total investments, and in total is prohibited from exceeding 20% (twenty percent) of the total Pension Fund investments; and
d. infrastructure investment funds in the form of collective investment contracts as referred to in Article 150 paragraph (1) letter q for each Investment Manager is at most 10% (ten percent) of the total investments, and in total is prohibited from exceeding 20% (twenty percent) of the total Pension Fund investments. (4) Investments in MTN as referred to in Article 150 paragraph (1) letter i are prohibited from exceeding 10% (ten percent) of the total MTN issuance amount. (5) Investments in MTN as referred to in Article 150 paragraph (1) letter i must meet the following criteria:
a. MTN is registered with the Indonesia Central Securities Depository; b. MTN has a monitoring agent that has obtained a license as a trustee from the Financial Services Authority (OJK);
c. MTN has an AAA rating or the highest investment rating issued by a securities rating company that has obtained a business license from the Financial Services Authority (OJK);
d. MTN is guaranteed/covered with guarantees/coverage worth at least 100% (one hundred percent) of the nominal value of the MTN; and e. MTN is issued by state-owned enterprises or institutions granted special authority based on laws and regulations for the management of central government investment, guaranteed by the central government. (6) Investments in regional bonds as referred to in Article 150 paragraph (1) letter p must meet the following requirements:
a. have obtained an effectiveness statement from the Financial Services Authority (OJK); and b. have an investment-grade rating from a securities rating company that has obtained a business license from the Financial Services Authority (OJK). (7) Investments in infrastructure investment funds in the form of collective investment contracts as referred to in Article 150 paragraph (1) letter q must meet the following requirements:
a. for infrastructure investment funds in the form of collective investment contracts issued through a public offering, have obtained an effectiveness statement from the Financial Services Authority (OJK); b. for infrastructure investment funds in the form of collective investment contracts issued not through a public offering, are registered with the Financial Services Authority (OJK);
c. have an investment-grade rating from a securities rating company that has obtained a business license from the Financial Services Authority (OJK); and
d. one of the investment portfolios of the infrastructure investment funds in the form of collective investment contracts consists of infrastructure assets that have generated income. (8) The total amount of investments with one party as referred to in paragraph (1) for Mutual Funds, asset-backed securities, and/or real estate investment funds in the form of collective investment contracts as referred to in Article 150 paragraph (1) letters h, j, and/or k consists of:
a. Mutual Fund participations; b. asset-backed securities; and/or
c. real estate investment funds in the form of collective investment contracts,
managed by the same Investment Manager.
Article 158
(1) Pension Funds are prohibited from conducting derivative transactions or holding derivative instruments, except:
a. options contracts and forward contracts for securities traded on the Indonesia Stock Exchange as referred to in Article 150 paragraph (1) letter l; b. derivative instruments obtained by the Pension Fund as instruments attached to Government Securities, shares, or corporate bonds listed on the Indonesia Stock Exchange as referred to in Article 150 paragraph (1) letters e, f, and g; and
c. derivative transactions for hedging investments in the form of Government Securities denominated in foreign currencies.
(2) Pension Funds may sell derivative instruments attached to Government Securities, shares, or corporate bonds listed on the Indonesia Stock Exchange as referred to in paragraph (1) letter b separately from the respective Government Securities, shares, or corporate bonds. (3) Derivative transactions as referred to in paragraph (1) letter c are conducted with counterparties that have at least an investment-grade rating from a securities rating company that has obtained a business license from the Financial Services Authority (OJK) or from a securities rating company recognized internationally. (4) Derivative transactions as referred to in paragraph (1) letter c must be reported to the Financial Services Authority (OJK) no later than 7 (seven) working days since the date of the transaction. (5) Reports as referred to in paragraph (4) must be attached with at least:
a. study results regarding the need for hedging; b. derivative transaction agreements; and
c. proof of the counterparty's rating as referred to in paragraph (3).
Article 159
(1) In the event of a merger, consolidation, or acquisition of parties where the Pension Fund makes investments, and the investment amount in the resulting party of the merger, consolidation, or acquisition becomes larger than the placement limit with one party as referred to in Article 157, the Pension Fund's investments in the resulting party of the merger, consolidation, or acquisition must be adjusted in accordance with the provisions in Article 157 no later than 12 (twelve) months since the date of the merger, consolidation, or acquisition. (2) Pension Funds are prohibited from making new investments in the resulting party of the merger, consolidation, or acquisition as referred to in paragraph (1) until the adjustment is completed.
Article 160
(1) Regulations regarding investment limits as referred to in Article 151 through Article 159 also apply to types of investments using Sharia Principles.
(2) Compliance with investment limits as referred to in Article 151 through Article 159 is determined at the time of investment placement.
(3) The investment amount for determining compliance as referred to in paragraph (2) considers the value of all investments owned by the Pension Fund based on the investment value as referred to in Article 150 paragraph (1). (4) Proof of compliance with investment limits as referred to in paragraph (2) and paragraph (3) is the responsibility of the Board of Directors. (5) In the event that a Pension Fund places investments exceeding the limits as referred to in Article 151 through Article 159, the Financial Services Authority (OJK) issues a written notice to the Pension Fund to comply with the said provisions. (6) Pension Funds must comply with the provisions as referred to in paragraph (5) no later than 40 (forty) working days since the notice from the Financial Services Authority (OJK).

Third Section
Pension Fund Investment Management
Article 161
(1) Board members and employees of Pension Fund Administrators (DPPK) specializing in investments, and Board members and employees of Pension Fund Trustees (DPLK) specializing in investments must:
a. have adequate capabilities in the field of investments and/or risk management; and b. meet continuing qualification requirements at least 1 (one) time within a period of 1 (one) year. (2) The capabilities as referred to in paragraph (1) are demonstrated by proof of passing investment and/or risk management certification exams issued by professional certification institutions that have obtained licenses from institutions with authority as competence certification authorities in accordance with laws and regulations. (3) Fulfillment of continuing qualification requirements as referred to in paragraph (1) is done by:
a. attending seminars, workshops, or similar activities; b. attending courses, training, or similar educational programs;
c. writing papers, articles, or other published works; or
d. becoming speakers in activities as referred to in letter a, becoming teachers, or becoming instructors in activities as referred to in letter b.
(4) Activities as referred to in paragraph (2) and paragraph (3) letters a, b, and d must be organized by:
a. financial services supervisory institutions inside and outside the country; b. financial services associations inside and outside the country;
c. universities inside and outside the country; or
d. training institutions that have obtained licenses from competent authorities.
(5) Pension Fund Administrators (DPPK) must submit proof of fulfillment of continuing qualification requirements for Board members and employees specializing in investments in accordance with Financial Services Authority (OJK) Regulations regarding periodic Pension Fund reports. (6) Pension Fund Trustees (DPLK) must submit proof of fulfillment of continuing qualification requirements for Board members and employees specializing in investments in accordance with Financial Services Authority (OJK) Regulations regarding periodic Pension Fund reports.

Fourth Section
Pension Fund Administrator Investment Directives
Article 162
(1) Investment Directives must be established by:
a. Founders after obtaining recommendations from the Supervisory Board, for Pension Fund Administrators (DPPK) managing PPMP programs; or b. Founders and the Supervisory Board, for Pension Fund Administrators (DPPK) managing PPIP programs. (2) Investment Directives as referred to in paragraph (1) must contain at least:
a. quantitative investment return targets to be achieved by the DPPK Board of Directors; b. maximum proportion limits of DPPK wealth that can be placed for each type of investment;
c. maximum proportion limits of DPPK wealth that can be placed with one party;
d. prohibited investment objects for placing DPPK wealth; e. minimum portfolio liquidity provisions for DPPK investments to support fund availability for Pension Benefit payments and DPPK operational costs; f. provisions containing obligations to have standard operating procedures for investments and adequate studies for placing and releasing investments; g. supervision and reporting systems for investment management implementation; h. provisions regarding the use of experts, investment advisors, financial institutions, and other services used in investment management;
i. asset allocation strategies adjusted to the DPPK liability profile;
j. sanctions to be applied by the DPPK to the DPPK Board of Directors for violations of investment provisions established in the Law on the Development and Strengthening of the Financial Sector and its implementing regulations; and k. provisions containing obligations for DPPK Founders or DPPK Founders and the Supervisory Board to evaluate the Investment Directives. (3) In the event that DPPK manages PPMP and PPIP programs, Investment Directives may be established:
a. for each program; or b. for both programs, established by the Founders and the Supervisory Board, containing provisions as referred to in paragraph (2) for each program. (4) In the event that DPPK makes changes to Investment Directives as referred to in paragraph (1) and paragraph (2), DPPK must report such changes to the Financial Services Authority (OJK) no later than 30 (thirty) days since the date of the establishment of changes to the Investment Directives.

(5) In the event that the Financial Services Authority requests the Pension Fund Administrator (DPPK) to revise the Investment Guidelines, the DPPK is required to submit a report regarding such revision to the Financial Services Authority no later than 30 (thirty) days from the date the revision to the Investment Guidelines is established.

(6) If the final deadline for submitting the report on changes to the Investment Guidelines as referred to in paragraph (3) and the submission of the revision report for the Investment Guidelines as referred to in paragraph (4) falls on a holiday, the final deadline for submitting the report is on the first working day thereafter.

(7) The Founder is required to evaluate the Investment Guidelines periodically at least once every 3 (three) years or whenever necessary.

Fifth Section
Obligations of the Management in Pension Fund Investment Management

Article 163

(1) The Management of the DPPK is required to carry out investment management in accordance with the Investment Guidelines.

(2) The Management of the DPPK is required to act professionally and prudently so that the investment decisions made are objective investment decisions, in the interest of Participants, the DPPK, and/or the Employer.

Article 164

(1) The Management of the DPPK is required to prepare an annual investment plan which must contain at least:
a. a plan for the composition of investment types developed based on portfolio investment optimization studies; b. estimated investment returns for each type of investment; and
c. considerations underlying the plan for the composition of investment types.

(2) The annual investment plan as referred to in paragraph (1) must be an elaboration of the Investment Guidelines and reflect the application of risk diversification principles and objective investment decisions as referred to in Article 163 paragraph (2).

Article 165

The use of services in the management of DPPK investments or the utilization of advice, suggestions, opinions, and other matters from third parties other than those established in the Investment Guidelines as referred to in Article 162 and the annual investment plan as referred to in Article 164 paragraph (1) that may influence the DPPK Management in making decisions or actions in carrying out the management of DPPK assets does not reduce the Management's obligation to comply with regulations applicable to DPPK investments and does not eliminate the DPPK Management's responsibility for the implementation of such investments.

Article 166

(1) The Management of the DPLK is required to provide explanations regarding the investment choices of the Pension Program to DPLK Participants and/or Employers who involve their employees in the DPLK before making investment choices.

(2) The explanations provided as referred to in paragraph (1) must contain at least explanations regarding the types of investment choices and investment risk levels that are accurate, clear, honest, and not misleading.

Sixth Section
Transfer of Investment Management

Article 167

(1) Investment management of DPPK assets may be transferred to financial institutions that have expertise in the field of investment management.

(2) For DPPKs operating Pension Programs based on Sharia Principles, the transfer of investment management of assets as referred to in paragraph (1) must obtain approval from the Sharia Supervisory Board.

(3) The management of DPPK investments by financial institutions as referred to in paragraph (1) is prohibited from deviating from regulations in the field of Pension Funds.

(4) Financial institutions as referred to in paragraph (1) that are securities companies holding permits to act as Investment Managers must meet the following requirements:
a. hold a business permit for a securities company conducting activities as an Investment Manager from the Financial Services Authority; b. are not currently subject to administrative sanctions in the form of business activity restrictions, suspension of business activities, or revocation of business permits by the Financial Services Authority;
c. are able to manage investment portfolios in accordance with regulations in the field of Pension Fund investments;
d. have experience managing Mutual Funds for at least 3 (three) years and have positive average performance for the Mutual Funds they manage; and e. have functions as regulated in regulations in the field of capital markets regarding guidelines for the implementation of Investment Manager functions.

(5) The transfer of investment management of DPPK assets to financial institutions as referred to in paragraph (1) must be made in a written agreement in the form of a notarial deed and refer to regulations in the field of capital markets.

(6) DPPKs that transfer the management of assets to financial institutions as referred to in paragraph (1) are required to deposit the transferred assets with a Custodian Bank designated by the DPPK Founder and which has no affiliation relationship with such financial institution.

(7) The transfer of investment management of assets as referred to in paragraph (1) must not reduce the responsibility of the DPPK Management.

(8) The Financial Services Authority may require Pension Funds to store and/or account for part or all of the Pension Fund assets with a Custodian Bank.

(9) Pension Fund assets stored with a Custodian Bank as referred to in paragraph (8) may only be withdrawn or transferred upon the order of the Management.

Article 168

DPLK is prohibited from transferring asset management to third parties.

Seventh Section
Evaluation of Pension Fund Investment Performance

Article 169

(1) The Supervisory Board is required to evaluate the performance of the Pension Fund investments at least 2 (two) times for 1 (one) fiscal year.

(2) The evaluation as referred to in paragraph (1) must cover at least the fairness of the Management's reasons for explaining the discrepancy between the Pension Fund's investment performance and the Investment Guidelines and the annual investment plan.

(3) The Supervisory Board may propose to the Founder to impose sanctions on the Management if the evaluation results as referred to in paragraph (3) show that the Management's reasons for explaining the discrepancy between the Pension Fund's investment performance and the Investment Guidelines and the annual investment plan are unacceptable.

Eighth Section
Transparency of Pension Fund Investment Management

Article 170

(1) The Management is required to announce to Participants a summary of the results of the Supervisory Board's evaluation as referred to in Article 169 paragraph (1).

(2) The Management is required to formulate procedures for Participants to submit opinions and suggestions regarding the evaluation of the Pension Fund's investment performance as referred to in Article 169 paragraph (1).

Ninth Section
Administrative Sanctions

Article 171

(1) Violations of the provisions as referred to in Article 150 paragraph (1), Article 151, Article 152, Article 153, Article 154, Article 155 paragraph (1), paragraph (2), paragraph (5), Article 156, Article 157 paragraph (1), paragraph (3), paragraph (4), paragraph (5), paragraph (6), paragraph (7), Article 158 paragraph (1), paragraph (4), paragraph (5), Article 159, Article 160 paragraph (6), Article 161 paragraph (1), paragraph (5), paragraph (6), Article 162 paragraph (1), paragraph (2), paragraph (4), paragraph (5), paragraph (7), Article 163, Article 164, Article 166 paragraph (1), Article 167 paragraph (3), paragraph (4), paragraph (5), paragraph (6), paragraph (7), Article 168, Article 169 paragraph (1), and/or Article 170 of this Financial Services Authority Regulation are subject to administrative sanctions in the form of:
a. written warning; b. prohibition to operate certain programs; and/or
c. downgrade of health level.

(2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority imposes a written warning sanction that ends automatically.

(3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Tenth Section
Re-evaluation of Principal Parties

Article 172

In addition to imposing administrative sanctions as referred to in Article 171 paragraph (1), the Financial Services Authority has the authority to conduct a re-evaluation of principal parties.

CHAPTER X
OTHER PROVISIONS

Article 173

(1) DPPK may operate PPMP and PPIP.

(2) The management of PPMP and PPIP is conducted separately.

(3) PDP may regulate membership for 1 (one) Participant in PPMP and PPIP.

Article 174

The Financial Services Authority may, based on certain considerations, provide approvals or policies different from this Financial Services Authority Regulation.

CHAPTER XI
TRANSITIONAL PROVISIONS

Article 175

Provisions regarding accelerated retirement age for Every Person who becomes a Pension Fund Participant effective before Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector was enacted refer to the provisions regarding accelerated retirement age in Law Number 11 of 1992 concerning Pension Funds.

Article 176

For Pension Funds having Management/employees specializing in investments who hold professional certifications in the field of capital markets as referred to in Article 154 paragraph (1) letter c, Article 154 paragraph (2) letter b, and Article 154 paragraph (4), at the latest 2 (two) years since this Financial Services Authority Regulation was enacted.

Article 177

(1) Provisions regarding the prohibition of DPLK managing assets to third parties as referred to in Article 168 are applied by DPLK with a deadline of January 12, 2028.

(2) The deadline until January 12, 2028 applies only to DPLKs that have entered into asset management cooperation agreements with third parties before the law concerning the development and strengthening of the financial sector.

Article 178

For DPLKs that have regulated the withdrawal of a certain amount of funds by Pension Program Participants within the PDP, such fund withdrawals may be carried out at the latest until January 12, 2028.

CHAPTER XII
CLOSING PROVISIONS

Article 179

Upon the entry into force of this Financial Services Authority Regulation, the implementing regulations of Financial Services Authority Regulation Number 3/POJK.05/2015 concerning Pension Fund Investments (State Gazette of the Republic of Indonesia Year 2015 Number 82, Supplement to the State Gazette of the Republic of Indonesia Number 5692) as amended by Financial Services Authority Regulation Number 29/POJK.05/2018 concerning Amendments to Financial Services Authority Regulation Number 3/POJK.05/2015 concerning Pension Fund Investments (State Gazette of the Republic of Indonesia Year 2018 Number 245, Supplement to the State Gazette of the Republic of Indonesia Number 6276), remain valid insofar as they do not conflict with this Financial Services Authority Regulation.

Article 180

Upon the entry into force of this Financial Services Authority Regulation, the following provisions:
a. Financial Services Authority Regulation Number 3/POJK.05/2015 concerning Pension Fund Investments (State Gazette of the Republic of Indonesia Year 2015 Number 82, Supplement to the State Gazette of the Republic of Indonesia Number 5692); b. Financial Services Authority Regulation Number 5/POJK.05/2017 concerning Contributions, Pension Benefits, and Other Benefits Operated by Pension Funds (State Gazette of the Republic of Indonesia Year 2017 Number 38, Supplement to the State Gazette of the Republic of Indonesia Number 6026);
c. Financial Services Authority Regulation Number 8/POJK.05/2018 concerning Pension Fund Financing (State Gazette of the Republic of Indonesia Year 2018 Number 84, Supplement to the State Gazette of the Republic of Indonesia Number 6212);
d. Financial Services Authority Regulation Number 29/POJK.05/2018 concerning Amendments to Financial Services Authority Regulation Number 3/POJK.05/2015 concerning Pension Fund Investments (State Gazette of the Republic of Indonesia Year 2018 Number 245, Supplement to the State Gazette of the Republic of Indonesia Number 6276); and e. Financial Services Authority Regulation Number 60/POJK.05/2020 concerning Amendments to Financial Services Authority Regulation Number 5/POJK.05/2017 concerning Contributions, Pension Benefits, and Other Benefits Operated by Pension Funds (State Gazette of the Republic of Indonesia Year 2020 Number 289, Supplement to the State Gazette of the Republic of Indonesia Number 6598), are revoked and declared invalid.

Article 181

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

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

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

Established in Jakarta on December 22, 2023
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,
MAHENDRA SIREGAR

Enacted in Jakarta on December 27, 2023
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2023 NUMBER 45/OJK signed

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 27 OF 2023
CONCERNING
THE OPERATION OF PENSION FUND BUSINESS

I. GENERAL

With the enactment of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK) on January 12, 2023, Law Number 11 of 1992 concerning Pension Funds (UU 11/1992) was revoked; however, the implementing regulations of UU 11/1992 are declared still valid insofar as they do not conflict and are given 2 (two) years to complete their implementing regulations, including in the form of Financial Services Authority Regulations. Reform in the financial sector is one of the reasons for the enactment of UU P2SK. Reform in the financial sector has high urgency in increasing the role of financial sector intermediation, as well as strengthening the resilience of the national financial system. A deep, innovative, efficient, inclusive, trustworthy, strong, and stable financial sector will support strong, balanced, inclusive, and sustainable economic growth, which is very necessary in realizing an Indonesian society that is just, prosperous, and well-off based on Pancasila and the 1945 Constitution of the Republic of Indonesia.

This Financial Services Authority Regulation contains substance regarding contributions, pension benefits, and other benefits previously regulated in Financial Services Authority Regulation Number 5/POJK.05/2017 as amended by Financial Services Authority Regulation Number 60/POJK.05/2020 concerning Contributions, Pension Benefits, and Other Benefits Operated by Pension Funds; the second substance relates to financing previously regulated in Financial Services Authority Regulation Number 8/POJK.05/2018 concerning Pension Fund Financing; and finally, the substance contains investments previously regulated in Financial Services Authority Regulation Number 3/POJK.05/2015 as amended by Financial Services Authority Regulation Number 29/POJK.05/2018 concerning Pension Fund Investments.

II. ARTICLE BY ARTICLE

Article 1
Sufficiently clear.

Article 2
Sufficiently clear.

Article 3
Sufficiently clear.

Article 4
What is meant by "Actuarial Report" is the last Actuarial Report submitted to the Financial Services Authority.

Article 5
Sufficiently clear.

Article 6
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Sufficiently clear.

Paragraph (7)
Sufficiently clear.

Paragraph (8)
What is meant by "social interest" is activities conducted together with community elements to do something needed by the community.

Article 7
Sufficiently clear.

Article 8
Sufficiently clear.

Article 9
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
The imposition of reasonable interest is calculated after the extension period ends.

Paragraph (4)
See the explanation of Article 6 paragraph (8).

Paragraph (5)
Sufficiently clear.

Article 10
Sufficiently clear.

Article 11
Sufficiently clear.

Article 12
Sufficiently clear.

Article 13
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Example: Employee Pension Fund PDP of PT ABC distinguishes contributions for staff and non-staff employee groups.
The application of the equality principle includes non-discrimination.

Article 14
Sufficiently clear.

Article 15
Sufficiently clear.

Article 16
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Sufficiently clear.

Paragraph (7)
Sufficiently clear.

Paragraph (8)
See the explanation of Article 6 paragraph (8).

Article 17
Paragraph (1)
What is meant by "accumulated funds" is the accumulation of contributions and development results that have been credited to the Participant's account.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Article 18
Sufficiently clear.

Article 19
Sufficiently clear.

Article 20
Sufficiently clear.

Article 21
Sufficiently clear.

Article 22
Sufficiently clear.

Article 23
Sufficiently clear.

Article 24
Sufficiently clear.

Article 25
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Example: The Founder experiences financial difficulties, namely:
a. experiencing losses; b. having liquidity difficulties; and/or
c. having no source of funds or assets that can be used to pay contributions,
in the last 1 (one) year.

Paragraph (7)
Sufficiently clear.

Paragraph (8)
Sufficiently clear.

Article 26
Paragraph (1)
The obligation to notify the inability of the Founder Partner to fulfill the obligation to pay contributions is done before the fourth month's contribution is due.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Article 27
Sufficiently clear.

Article 28
Sufficiently clear.

Article 29
Sufficiently clear.

Article 30
Sufficiently clear.

Article 31
Sufficiently clear.

Article 32
Paragraph (1)
The amount of Normal Pension Benefit is stated in the PDP and the Founder chooses to use the Monthly Formula or the Lump Sum Formula.
Example: Normal Pension Benefit using the Monthly Formula.
Monthly Formula = reward factor X working period X Basic Pension Income.
A Pension Fund Participant has a reward factor of 2.5% per year of working period, Basic Pension Income of Rp5,000,000.00, and a working period of 30 (thirty) years. 2.5% X 30 X Rp5,000,000.00 = Rp3,750,000.00 Example: Normal Pension Benefit using the Lump Sum Formula. Lump Sum Formula = reward factor X working period X Basic Pension Income. A Pension Fund Participant has a reward factor of 2.5 per year of working period, Basic Pension Income of Rp5,000,000.00, and a working period of 30 (thirty) years.
2.5 X 30 X Rp5,000,000.00 = Rp375,000,000.00.

Paragraph (2)
Letter a
Number 1
What is meant by "reward factor" is the multiplier number given by the Employer as a form of appreciation to employees.

Number 2
Sufficiently clear.

Number 3
Basic Pension Income, including in the form of:
a. Basic Pension Income of the last month; b. average Basic Pension Income over several recent months;
c. average Basic Pension Income over several recent years; or
d. average Basic Pension Income over the working period.

Letter b
Number 1
See the explanation of paragraph (2) letter a number 1.

Number 2
See the explanation of paragraph (2) letter a number 3.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Example: Employee Pension Fund PDP of PT ABC distinguishes the size of the reward factor for staff and non-staff employee groups.
The application of the equality principle includes non-discrimination.

Article 33
Sufficiently clear.

Article 34
Sufficiently clear.

Article 35
Letter a
What is meant by "pro rata" is the calculation of the working period for a working period part of less than 1 (one) year proportionally, by calculating the number of months the Participant worked. Example: if the Participant's working period is 30 (thirty) years 3 (three) months, then the calculation of the Participant's working period is 30 + 3/12 = 30.25 (thirty point twenty-five) years.

Letter b
What is meant by "rounding up" is the calculation of the working period for a working period part of less than 1 (one) year will be calculated as 1 (one) year. Example: if the Participant's working period is 30 (thirty) years 3 (three) months, then the Participant's working period becomes 31 (thirty-one) years.

Article 36
Sufficiently clear.

Article 37
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
What is meant by "Participant" is a Participant in the Pension Program, including Participants of other Pension Funds before January 12, 2023, who became DPLK Participants after January 12, 2023. Example:

Participant A is registered in Pension Fund ABC since January 12, 2023, then the Normal Retirement Age of Participant A is at least 55 (fifty-five) years.
Participant Z is registered in Pension Fund ABC since March 30, 1998, then the Normal Retirement Age of Participant Z can be the same as or lower than 55 (fifty-five) years.

Article 38
Paragraph (1)
Example: Normal Retirement Age in Pension Fund ABC is 55 (fifty-five) years, then the accelerated retirement age is 50 (fifty) years.
Normal Retirement Age in Pension Fund XYZ is 60 (sixty) years, then the accelerated retirement age is 55 (fifty-five) years.

Paragraph (2)
Sufficiently clear.

Participant A is registered in Pension Fund ABC since January 12, 2023, then the Normal Retirement Age of Participant A is at least 55 (fifty-five) years and the accelerated retirement age is 50 (fifty) years.
Participant Z is registered in Pension Fund ABC since March 30, 1998, then the Normal Retirement Age of Participant Z can be the same as or lower than 55 (fifty-five) years and the accelerated retirement age is 45 (forty-five) years.

Article 39
Paragraph (1)
Widow/Widower or children include the Widow/Widower or children of a Participant who died during the period of periodic Pension Benefit payments.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Letter a
Sufficiently clear.

Letter b
The PDP may regulate payments to the Widow/Widower or children exceeding 60% (sixty percent) of the Participant's rights, for example, by considering the Participant's working period not yet passed until the Normal Retirement Age. If the deceased is a pensioner, the Pension Benefit paid to the legitimate Widow/Widower or children is at least 60% (sixty percent) of the Pension Benefit already paid to the pensioner.

Letter c
Sufficiently clear.

Paragraph (5)
Letter a
Sufficiently clear.

Letter b
What is meant by "complying with regulations in the field of Pension Funds and PDP" includes providing continuity of Pension Benefit payments for Participants and Right Holders.

Letter c
Sufficiently clear.

Letter d
Sufficiently clear.

Paragraph (6)
Example: Pension Benefit is paid with the purchase of an annuity or Sharia annuity in a life insurance company or Sharia life insurance company that promises periodic payments for 10 (ten) years. If the Participant dies in the third year of Pension Benefit payments, the life insurance company or Sharia life insurance company continues to pay the annuity or Sharia annuity to the Widow/Widower or children until the end of the annuity or Sharia annuity payment period.

Paragraph (7)
Sufficiently clear.

Paragraph (8)
Sufficiently clear.

Paragraph (9)
Sufficiently clear.

Article 40
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
What is meant by "financial difficulties" is the condition of the Participant being unable to meet basic needs sustainably, which is evidenced by a letter of inability from the competent party. What is meant by "critical illness" is a disease included in critical illness, evidenced by a doctor's letter.

Article 41
Sufficiently clear.

Article 42
What is meant by "legitimate heirs" are heirs recorded in the Pension Fund before the Participant's death.

Article 43
Paragraph (1)
This provision can give Participants the option to receive the first payment of at most 20% (twenty percent) of the present value of Pension Benefits, for transition period needs at the beginning of retirement.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Article 44
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Paragraph (6)
The term "Participants' Interest" refers to ensuring that the benefits provided are sufficient to finance their financial needs in retirement.
Paragraph (7)
Clearly stated.
Paragraph (8)
Clearly stated.
Paragraph (9)
Clearly stated.

Article 45
Clearly stated.

Article 46
Clearly stated.

Article 47
Clearly stated.

Article 48
Letter a
Documents proving that a Participant, Widow/Widower, or child is experiencing financial difficulties and suffering from a critical illness include, among others, an inability certificate from the competent authority and a doctor's certificate showing the Participant is suffering from a prolonged illness. Letter b Documents proving that a Participant, Widow/Widower, or child has changed nationality include, among others, a passport issued by another country. Letter c Documents proving that a Participant, Widow/Widower, or child has ended their working period and is no longer working in Indonesia include, among others, an employment contract with the Employer or a statement letter stating that the individual is no longer working in Indonesia.

Article 49
Clearly stated.

Article 50
A funding system where the burden is borne by each respective Employer is known as the non-cost sharing system.

Article 51
Clearly stated.

Article 52
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
The net asset value per unit method is known as the unit pricing method.
Paragraph (4)
Clearly stated.

Article 53
Paragraph (1)
The term "managing assets according to Participants' age group (life cycle fund)" refers to investment placements adjusted to the age and time remaining until retirement of the Participants. For Participants who are relatively young and have a long time remaining until retirement, assets are placed in long-term investments with higher return opportunities, whereas for Participants whose age is approaching retirement, assets are placed in more conservative investments. Example: The application of managing assets according to Participants' age group (life cycle fund) includes, among others, grouping asset management into 2 (two) Participant groups, namely:

assets for the group of Participants who have more than 20 (twenty) years until Normal Retirement Age are placed in long-term investments with higher investment return opportunities, thereby protected from the impact of inflation but with a higher level of risk; and
assets for the group of Participants who have a maximum of 20 (twenty) years and a minimum of 5 (five) years until Normal Retirement Age are placed in long-term investment instruments but with more conservative return and risk opportunities compared to the age group of more than 20 (twenty) years until Normal Retirement Age.
Paragraph (2)
Clearly stated.

Article 54
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
See explanation of Article 37 paragraph (3).

Article 55
Paragraph (1)
See explanation of Article 38 paragraph (1).
Paragraph (2)
See explanation of Article 38 paragraph (3).

Article 56
Paragraph (1)
See explanation of Article 39 paragraph (1).
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Letter a
If there are Participants who stop working and have not reached the accelerated retirement age or stop working after the accelerated retirement age, the calculation of the period for periodic Pension Benefit payments starts from the earliest period of 10 (ten) years up to 25 (twenty-five) years after such Participant reaches Normal Retirement Age. Letter b Clearly stated. Letter c Clearly stated. Letter d Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) See explanation of Article 39 paragraph (6). Paragraph (7) Clearly stated. Paragraph (8) Clearly stated. Paragraph (9) Clearly stated.

Article 57
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
See explanation of Article 40 letter c.

Article 58
Paragraph (1)
This provision can provide a choice for Participants to receive a first payment of at most 20% (twenty percent) of the Present Value of Pension Benefits, for transition purposes at the beginning of retirement. In the event that a DPPK Participant who administers a PPIP at the time of retirement has already taken the aforementioned first Pension Benefit of at most 20% (twenty percent) all at once, then if the Participant dies, the Widow/Widower or child cannot take the aforementioned first Pension Benefit again. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated.

Article 59
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
See explanation of Article 44 paragraph (6).
Paragraph (6)
Clearly stated.
Paragraph (7)
Clearly stated.
Paragraph (8)
Clearly stated.
Paragraph (9)
Clearly stated.

Article 60
Clearly stated.

Article 61
Clearly stated.

Article 62
Clearly stated.

Article 63
Letter a
See explanation of Article 48 letter a.
Letter b
See explanation of Article 48 letter b.
Letter c
See explanation of Article 48 letter c.

Article 64
Paragraph (1)
The principle of matching assets and liabilities is known as matching assets and liabilities.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.

Article 65
Paragraph (1)
Clearly stated.
Paragraph (2)
See explanation of Article 52 paragraph (3).
Paragraph (3)
Clearly stated.

Article 66
Clearly stated.
Clearly stated.

Article 67
Paragraph (1)
In the application of these provisions, the DPLK recommends managing assets according to Participants' age group (life cycle fund) as the main (default) choice of asset management before giving Participants the opportunity to determine their choice of asset management package. The term "managing assets according to Participants' age group (life cycle fund)" refers to investment placements adjusted to the age and time remaining until retirement of the Participants. For Participants who are relatively young and have a long time remaining until retirement, assets are placed in long-term investments with higher return opportunities, whereas for Participants whose age is approaching retirement, assets are placed in more conservative investments. Example of the application of managing assets according to Participants' age group (life cycle fund) includes, among others, grouping asset management into 2 (two) Participant groups, namely:

assets for the group of Participants who have more than 20 (twenty) years until Normal Retirement Age are placed in long-term investments with higher investment return opportunities, thereby protected from the impact of inflation but with a higher level of risk; and
assets for the group of Participants who have a maximum of 20 (twenty) years and a minimum of 5 (five) years until Normal Retirement Age are placed in long-term investment instruments but with more conservative return and risk opportunities compared to the age group of more than 20 (twenty) years until Normal Retirement Age.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Examples of the contents of a written statement include, among others, the Participant agrees with the chosen package or type of investment and the Participant is aware of the risks associated with the chosen package or type of investment. Paragraph (5) Clearly stated.

Article 68
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
See explanation of Article 37 paragraph (3).

Article 69
Paragraph (1)
See explanation of Article 38 paragraph (1).
Paragraph (2)
See explanation of Article 38 paragraph (3).

Article 70
Paragraph (1)
See explanation of Article 39 paragraph (1).
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Letter a
See explanation of Article 56 paragraph (4) letter a.
Letter b
Clearly stated.
Letter c
Clearly stated.
Letter d
Clearly stated.
Paragraph (5)
Clearly stated.
Paragraph (6)
See explanation of Article 39 paragraph (6).
Paragraph (7)
Clearly stated.
Paragraph (8)
Clearly stated.
Paragraph (9)
Clearly stated.

Article 71
Paragraph (1)
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
See explanation of Article 40 letter c.
Letter d
The term "Participants who are not wage-earning workers in a business entity" refers to independent Participants who do not work for a business entity or do not have an Employer. Examples: entrepreneurs, artists, and/or traders. Paragraph (2) Clearly stated.

Article 72
Paragraph (1)
This provision can provide a choice for Participants to receive a first payment of at most 20% (twenty percent) of the Present Value of Pension Benefits, for transition purposes at the beginning of retirement. In the event that a DPLK Participant at the time of retirement has already taken the aforementioned first Pension Benefit of at most 20% (twenty percent) all at once, then if the Participant dies, the Widow/Widower or child cannot take the aforementioned first Pension Benefit again. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated.

Article 73
Clearly stated.

Article 74
Clearly stated.

Article 75
Clearly stated.

Article 76
Clearly stated.

Article 77
Letter a
See explanation of Article 48 letter a.
Letter b
See explanation of Article 48 letter b.
Letter c
See explanation of Article 48 letter c.

Article 78
Paragraph (1)
See explanation of Article 64 paragraph (1).
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.

Article 79
Clearly stated.

Article 80
Clearly stated.

Article 81
Clearly stated.

Article 82
Clearly stated.

Article 83
Paragraph (1)
Other Pension Benefits and/or other benefits are additional choices for Participants.
Types of Other Pension Benefits include, among others:
a. post-employment compensation funds; b. additional benefit funds;
c. Disability benefit funds;
d. death benefit funds; and e. retiree health benefit funds.
Types of other benefits include, among others:
a. children's education funds; b. housing funds;
c. religious worship funds; and
d. employee health benefit funds.
Paragraph (2)
Clearly stated.

Article 84
The term "operational readiness" includes, among others, having adequate systems for recording Other Pension Benefits and/or other benefits and having adequate human resources.

Article 85
Clearly stated.

Article 86
Clearly stated.

Article 87
Clearly stated.

Article 88
Paragraph (1)
Clearly stated.
Paragraph (2)
Pension Programs include Other Pension Benefits.
Paragraph (3)
Clearly stated.

Article 89
Clearly stated.

Article 90
Clearly stated.

Article 91
Clearly stated.

Article 92
Clearly stated.

Article 93
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
The term "other receivables and other assets" refers to other receivables and other assets in the Pension Fund financial statements.
Letter d
Clearly stated.

Article 94
Paragraph (1)
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
Examples of actuarial valuations that impact the transfer of wealth from DPPKs administering PPMPs include changes in the PDP for the termination of Founding Partners. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated.

Article 95
Clearly stated.

Article 96
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
The term "fair interest" refers to the interest rate applicable during the delay in the aforementioned deposit.
Paragraph (5)
See explanation of Article 6 paragraph (8).
Paragraph (6)
Clearly stated.
Paragraph (7)
Adjustments to the Actuarial Report are made regarding the content concerning the amount of additional monthly contributions and their payment period, including those presented in the Actuarial Statement for positions before and after the acceleration of Deficit repayment. Paragraph (8) Examples of Employers experiencing financial difficulties include:
a. experiencing losses; b. having liquidity difficulties; and/or
c. having no source of funds or assets that can be used to pay contributions,
within the last 1 (one) year.

Article 97
Clearly stated.

Article 98
Clearly stated.

Article 99
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
See explanation of Article 6 paragraph (8).

Article 100
Clearly stated.

Article 101
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
Contribution debts include interest or sanctions (ta'zir) in the form of fines for late payment of contributions.
Letter b
Clearly stated.
Letter c
Clearly stated.
Letter d
The term "not bearing Pension Program financing evenly (non-sharing pension cost)" refers to the funding of DPPKs administering PPMPs where Pension Program financing is not borne evenly by Employers. In this system, the Pension Program funding condition is calculated and funded separately for each Employer. Paragraph (3) Letter a The term "Employer experiencing Surplus" refers to an Employer whose Pension Program funding position has a Surplus. Letter b Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) Clearly stated.

Article 102
Clearly stated.

Article 103
Paragraph (1)
The term "responsibility" refers to being responsible for the scheme established in the PDP. The source of PMLMP funds is determined in the PDP.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Paragraph (6)
Clearly stated.
Paragraph (7)
Clearly stated.

Article 104
Clearly stated.

Article 105
Paragraph (1)
Clearly stated.
Paragraph (2)
The first and second-tier funding quality requirements for the use of PMLMP funds in the form of certain percentages of Pension Program development results apply throughout the funding process. The funding quality condition must be met after considering the use of development results for PMLMP funding. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) Clearly stated. Paragraph (7) Clearly stated.

Article 106
Clearly stated.

Article 107
Clearly stated.

Article 108
Clearly stated.

Article 109
Paragraph (1)
The term "responsibility" refers to being responsible for the scheme established in the PDP. The source of PMLIP funds is determined in the PDP.
Paragraph (2)
Provisions regarding PMLIP fund adequacy reporting are regulated in Financial Services Authority regulations regarding periodic pension fund reports.
Paragraph (3)
Clearly stated.

Article 110
Clearly stated.

Article 111
Clearly stated.

Article 112
Clearly stated.

Article 113
Paragraph (1)
The term "responsibility" refers to being responsible for the chosen scheme. The source of Other Benefit Program funds is determined in the written statement.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.

Article 114
Clearly stated.

Article 115
Paragraph (1)
Letter a
Direct contribution payments by Participants to the DPLK are carried out, among others, by automatic debit from the Participant's account.
Letter b
Clearly stated.
Paragraph (2)
The Participant's written statement can be formulated in the form of a membership form or other written documents.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.

Article 116
Clearly stated.

Article 117
Clearly stated.

Article 118
Paragraph (1)
Letter a
The term "Founding Partner termination date" refers to the effective date of the Founding Partner termination as stated in the Founding Partner's statement letter. Letter b The term "not continuing the administration of PPMP" refers to a Founding Partner transferring its employees' membership to a Pension Fund administering a PPIP or not continuing the administration of the Pension Program for its employees. Paragraph (2) Letter a The term "Participant's rights" refers to the Employer's obligations to Participants. Letter b Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) Clearly stated.

Article 119
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
The Funding Ratio and the amount of Additional Contributions are determined in the Actuarial Report.
Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Paragraph (6)
Clearly stated.
Paragraph (7)
Letter a
Clearly stated.
Letter b
The term "other parties" includes, among others, the DPLK and/or insurance companies.
Paragraph (8)
Clearly stated.
Paragraph (9)
Clearly stated.

Article 120
Paragraph (1)
Agreements between Employers and Participants include, among others, through recognized labor unions or Participant representatives based on internal company mechanisms. Paragraph (2) Letter a Clearly stated. Letter b See explanation of Article 118 paragraph (2) letter a. Letter c Clearly stated.

Article 121
Paragraph (1)
Clearly stated.
Paragraph (2)
Example:
At the time of program change, there is disputed wealth so it is not allocated to the Participant's account balance. After the program changes, there is a possibility that the wealth is no longer in dispute in court and becomes the absolute right of the Pension Fund. This wealth can be calculated as Wealth for Funding.

Article 122
Paragraph (1)
Letter a
See explanation of Article 17 paragraph (1).
Letter b
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.

Article 123
Clearly stated.

Article 124
Clearly stated.

Article 125
Paragraph (1)
Clearly stated.
Paragraph (2)
See explanation of Article 120 paragraph (1).
Paragraph (3)
Letter a
Clearly stated.
Letter b
See explanation of Article 118 paragraph (2) letter a.
Letter c
Clearly stated.

Article 126
Clearly stated.

Article 127
Clearly stated.

Article 128
Paragraph (1)
Actuarial Assumptions include, among others, interest rates, probability rates of death, Disability, and rates of increase in Pension Basic Income.
Paragraph (2)
Actuarial practice standards are compiled by the Indonesian Actuarial Association.

Article 129
Example:
Actuarial valuations conducted for program sustainability purposes must have Actuarial Assumptions that reflect future conditions, taking into account and considering the condition of the relevant Pension Fund.

Article 130
Clearly stated.

Article 131
Clearly stated.

Article 132
Clearly stated.

Article 133
Paragraph (1)
The term "actuarial valuation" refers to actuarial valuation for the administration of PPMP or for the administration of PMLMP.
Paragraph (2)
Clearly stated.
Paragraph (3)
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
Clearly stated.
Letter d
Clearly stated.
Letter e
Clearly stated.
Letter f
Clearly stated.
Letter g
Clearly stated.
Letter h
Clearly stated.
Letter i
Clearly stated.
Letter j
Clearly stated.
Letter k
Clearly stated.
Letter l
Clearly stated.
Letter m
Clearly stated.
Letter n
Clearly stated.
Letter o
Clearly stated.
Letter p
Clearly stated.
Letter q
Clearly stated.
Letter r
The allocation of Actuarial Present Value is made according to the grouping of Actuarial Present Value maturities in the context of preparing periodic reports on asset and liability matching analysis (asset liabilities mismatch). Letter s Sensitivity scenarios for worsening funding conditions include, among others, the impact on Actuarial Present Value and Solvency Liabilities. Examples of worsening sensitivity scenarios are:

investment returns are far below the assumed technical interest rate used; and
due contributions are not paid by the Employer.
Letter t
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
In the event that ad-hoc actuarial valuations are used for contribution payments, the results of such actuarial valuations must first be submitted to the Financial Services Authority.

Article 134
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Example:
When the Pension Fund conducts an actuarial valuation in a PDP change as of August 1, 2021, and the results of that actuarial valuation show that the Pension Fund has third-tier funding quality, the Pension Fund is required to conduct an actuarial valuation again at the latest for the position as of December 31, 2022.

Article 135
Clearly stated.

Article 136
Clearly stated.

Article 137
Clearly stated.

Article 138
The term "general funding condition of DPPK" refers to the PPMP funding condition and the PMLMP funding condition presented in aggregate.

Article 139
Paragraph (1)
Clearly stated.
Paragraph (2)
The term "fair technical interest rate" refers to a technical interest rate that reflects the ability of DPPKs administering PPMPs to develop managed funds in the long term.

Article 140
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
Catastrophic events include, among others, fires, mass riots, war, armed conflict, sabotage, pandemics, cyber attacks, and/or natural disasters such as earthquakes or floods. Paragraph (6) See explanation of paragraph (5). Paragraph (7) Clearly stated. Paragraph (8) The submission of the Actuarial Report is sent to the email address LB.DanaPensiun@ojk.go.id. Paragraph (9) The submission of the Actuarial Report and supporting documents using electronic data storage media is addressed to:
Head of the Executive Supervisor of Insurance, Guarantee, and Pension Funds u.p. Director of Pension Fund Supervision Wisma Mulia 2 Building, 12th Floor Jalan Jenderal Gatot Subroto Kav 42 Jakarta 12710. Paragraph (10) Clearly stated. Paragraph (11) Clearly stated.

Article 141
Clearly stated.

Article 142
Clearly stated.

Article 143
Clearly stated.

Article 144
Clearly stated.

Article 145
Clearly stated.

Article 146
Paragraph (1)
The term "contract" refers to a legal bond/relationship between a statement of making a bond (ijab) and a statement of accepting a bond (qabul) made between 2 (two) parties or more, in accordance with Sharia Principles. Paragraph (2) Letter a The term "akad hibah bi syarth" refers to a hibah contract that only occurs (is effective) if certain conditions have been met (in the case of vesting rights). Letter b The term "akad hibah muqayyadah" refers to a hibah contract, where the employer (wahib) determines the persons or parties entitled to receive pension benefits, including the prohibition of taking pension benefits before their time (locking in). Letter c The term "akad wakalah" refers to a contract involving the delegation of authority by the principal to another party in matters that can be delegated. Letter d The term "akad wakalah bil ujrah" refers to a wakalah contract with a fee (ujrah). Letter e The term "akad mudharabah" refers to a business cooperation contract between a Sharia Pension Fund and other parties, where the Sharia Pension Fund acts as the shahibul mal (owner of capital), the other party acts as the mudharib (manager), profits are shared according to an agreed ratio, while losses are borne by the Sharia Pension Fund if the loss occurs not due to managerial negligence. Letter f The term "akad ijarah" refers to a contract for the disbursement of funds for the transfer of the right to use (benefit) over goods or services, for a certain period with rental payment (ujrah), between a Pension Fund administering a Pension Program based on Sharia Principles as the lessee (musta'jir) and the lessor (mu'ajir) without following the transfer of ownership of the goods or services themselves. Letter g Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) Clearly stated.

Article 147
Clearly stated.

Article 148
Clearly stated.

Article 149
Clearly stated.

Article 150
Paragraph (1)
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
Clearly stated.
Letter d
Clearly stated.
Letter e
Clearly stated.
Letter f
Clearly stated.
Letter g
Types of corporate bonds include subordinated bonds listed on the Indonesia Stock Exchange.
Letter h
Clearly stated.
Letter i
This type of MTN investment can be directed, including for infrastructure financing, venture capital, and other financing.
Letter j
Included in asset-backed securities are asset-backed securities from collective investment contracts and asset-backed securities in the form of participation certificates. Letter k Clearly stated. Letter l Clearly stated.

Letter m
Clearly stated.
Letter n
Clearly stated.
Letter o
Clearly stated.
Letter p
The term "regional bonds" refers to regional loans offered to the public through a public offering in the capital market.
Letter q
The term "collective investment contract-based infrastructure investment fund" refers to a collective investment contract vehicle used to raise funds from investor members, which are then largely invested in infrastructure assets by the Investment Manager. Paragraph (2) Types of investments using Sharia Principles include:
a. Sharia banking products as regulated in the Law on Sharia Banking, including Sharia deposits; b. Sharia state securities/national sukuk;
c. corporate sukuk;
d. Sharia Mutual Funds; e. Sharia asset-backed securities; f. Sharia real estate investment funds; and g. Sharia MTN.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Article 151
Clearly stated.
Article 152
Clearly stated.
Article 153
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
The placement of Pension Fund representatives in the board of commissioners of a limited liability company is intended to preserve and protect the interests of the Pension Fund as a shareholder. Letter b Clearly stated. Paragraph (3) Clearly stated.

Article 154
Paragraph (1)
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
The term "professional certification in the capital market field" refers to the competency fields of security analyst, portfolio management, and risk management. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) See explanation of paragraph (1) letter c.
Article 155
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
The lease transaction value of Rp100,000,000.00 (one hundred million rupiah) is determined based on a study conducted by the Pension Fund.
Paragraph (5)
Clearly stated.
Paragraph (6)
Clearly stated.
Article 156
Clearly stated.
Article 157
Paragraph (1)
The provisions do not apply to Mutual Funds in the form of collective investment contracts of limited participation.
The term "party" refers to an individual or business entity, whether in the form of a legal entity or not, whether individually or collectively as a group having an affiliation relationship. Affiliation relationship is a relationship between parties where:
a. one party has one or more directors or officials below the director level or board of commissioners, who also serve as directors or officials below the director level or board of commissioners in the other party; b. one party has one or more directors or officials below the director level or board of commissioners, who have a family relationship due to marriage or descent up to the second degree, either horizontally or vertically, who serve as directors or officials below the director level or board of commissioners in the other party;
c. one party has the authority to appoint or dismiss the board of directors or board of commissioners or equivalent of the other party; or
d. one party directly or indirectly controls, is controlled by, or is under the control of another party except for control by the Government of the Republic of Indonesia, which includes:

one party holds at least 25% (twenty-five percent) of the shares of the other party or is the largest shareholder;
one party is the largest creditor of the other party;
one party has voting rights in the other party of more than 50% (fifty percent) based on an agreement; or
one party can control operations, supervision, or decision-making, directly or indirectly, over the right to regulate and determine the financial and operational policies of the other party based on the articles of association, bylaws, or agreement.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
Letter a
Clearly stated.
Letter b
The term "watchdog agent" refers to a party performing the function of a trustee.
Such watchdog agent is intended to fulfill the principle of prudence for the Pension Fund when investing in MTN.
Letter c
Clearly stated.
Letter d
Clearly stated.
Letter e
The term "institution granted special authority based on statutory regulations for the management of central government investments" refers to an investment management institution as referred to in statutory regulations regarding investment management institutions. Paragraph (6) Clearly stated. Paragraph (7) Clearly stated. Paragraph (8) The term "managed by the same Investment Manager" means that if the Pension Fund has investment types in Mutual Funds, asset-backed securities, and real estate investment funds managed by one or more Investment Managers, then the calculation of investment limits on one party involves grouping these investment types based on their Investment Manager. Example:
Pension Fund A has the following investment types:

Investment Type	Investment Manager	Fair Value of Investment
Mutual Fund 1	A	Rp100,000,000.00
Mutual Fund 2	B	Rp200,000,000.00
Asset-backed security 1	A	Rp300,000,000.00
Asset-backed security 2	C	Rp200,000,000.00
Real estate investment fund 1	B	Rp200,000,000.00
Real estate investment fund 2	A	Rp100,000,000.00

Based on the data above, the grouping by Investment Manager is as follows:

Investment Manager	Investments	Fair Value of Investment
A	Mutual Fund 1<br>Asset-backed security 1<br>Real estate investment fund 2	Rp100,000,000.00<br>Rp300,000,000.00<br>Rp100,000,000.00<br>Total Rp500,000,000.00
B	Mutual Fund 2<br>Real estate investment fund 1	Rp200,000,000.00<br>Rp200,000,000.00<br>Total Rp400,000,000.00
C	Asset-backed security 2	Rp200,000,000.00<br>Total Rp200,000,000.00

Article 158
Clearly stated.

Article 159
Clearly stated.
Article 160
Clearly stated.
Article 161
Paragraph (1)
The term "Management" refers to the Chairman of the DPPK Management and members of the DPPK Management specializing in investment.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Paragraph (6)
Clearly stated.
Article 162
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
Investment result targets in the Investment Directive are set quantitatively and are long-term, considering among others:
a. realization of investment achievement in the previous period; and b. for DPPK implementing PPMP, the technical interest rate used in actuarial valuation.
Letter b
Clearly stated.
Letter c
Clearly stated.
Letter d
Clearly stated.
Letter e
Clearly stated.
Letter f
Clearly stated.
Letter g
Clearly stated.
Letter h
Clearly stated.
Letter i
Clearly stated.
Letter j
Clearly stated.
Letter k
Clearly stated.
Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Paragraph (6)
Clearly stated.
Paragraph (7)
Clearly stated.
Article 163
Clearly stated.
Article 164
Clearly stated.
Article 165
Clearly stated.
Article 166
Clearly stated.
Article 167
Paragraph (1)
The term "financial institution with expertise in investment management" refers to a securities company holding a license to act as an Investment Manager.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
Clearly stated.
Letter d
The term "positive performance" refers to performance above the industry average for each type of investment, using the weighted average performance benchmark of the Investment Manager in managing similar Mutual Funds. Letter e Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) The term "affiliation" is a relationship between parties where:
a. one party has one or more directors or officials below the director level or board of commissioners, who also serve as directors or officials below the director level or board of commissioners in the other party;

b. one party has one or more directors or officials below the director level or board of commissioners, who have a family relationship due to marriage or descent up to the second degree, either horizontally or vertically, who serve as directors or officials below the director level or board of commissioners in the other party;
c. one party has the authority to appoint or dismiss the board of directors or board of commissioners or equivalent of the other party; or
d. one party directly or indirectly controls, is controlled by, or is under the control of another party except for control by the Government of the Republic of Indonesia, which includes:

one party holds at least 25% (twenty-five percent) of the shares of the other party or is the largest shareholder;
one party is the largest creditor of the other party;
one party has voting rights in the other party of more than 50% (fifty percent) based on an agreement; or
one party can control operations, supervision, or decision-making, directly or indirectly, over the right to regulate and determine the financial and operational policies of the other party based on the articles of association, bylaws, or agreement.
Paragraph (7)
Clearly stated.
Paragraph (8)
Clearly stated.
Paragraph (9)
Clearly stated.
Article 168
The term "third party" refers to an individual or entity managing DPLK assets.
Article 169
Paragraph (1)
Investment performance evaluation is based on, among others, opinions and suggestions from Participants to the Founder, Supervisory Board, and Management regarding the development of the portfolio and investment results of Pension Fund assets. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated.
Article 170
Clearly stated.
Article 171
Clearly stated.

Article 172
Clearly stated.
Article 173
Paragraph (1)
Clearly stated.
Paragraph (2)
Even if DPPK implements PPMP and PPIP in the same Pension Fund, PPMP management is conducted separately from PPIP management, following the business operation regulations for each program. Paragraph (3) Clearly stated.
Article 174
Clearly stated.
Article 175
Clearly stated.
Article 176
Clearly stated.
Article 177
Paragraph (1)
Clearly stated.
Paragraph (2)
The term "asset management cooperation agreement with a third party before the Law on the Development and Strengthening of the Financial Sector" refers to existing cooperation agreements so that when such agreement expires, the DPLK cannot extend or create new cooperation agreements for asset management with third parties.
Article 178
Clearly stated.
Article 179
Clearly stated.
Article 180
Clearly stated.
Article 181
Clearly stated.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 67/OJK

Financial Services Authority Regulation Number 27 of 2023 Concerning the Management of Pension Fund Business

Lineage: Superseded

Timeline