Financial Services Authority Regulation Number 33/POJK.05/2016 on the Administration of Pension Programs Based on Sharia Principles

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 33 /POJK.05/2016
CONCERNING
THE ADMINISTRATION OF PENSION PROGRAMS
BASED ON SHARIA PRINCIPLES
BY THE GRACE OF GOD THE ALMIGHTY
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that the public's need for pension programs based on Sharia principles is increasing; b. that in order to develop Sharia pension funds, it is necessary to issue regulations regarding the administration of pension programs based on Sharia principles;
c. that the administration of pension programs based on Sharia principles must always fulfill Islamic Sharia principles, including fatwas established by the National Sharia Council of the Indonesian Ulema Council;
d. that in order to fulfill the Islamic Sharia principles referred to in letter c, legal certainty is needed in the administration of pension programs based on Sharia principles for parties having an interest in the administration of pension programs based on Sharia principles; e. that regulations regarding pension programs based on Sharia principles in existing legislation are not specific enough, so they need to be regulated specifically;

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f. that based on the considerations referred to in letters a through e, it is necessary to establish a Financial Services Authority Regulation on the Administration of Pension Programs Based on Sharia Principles;

Recalling:

1. Law Number 11 of 1992 concerning Pension Funds (State Gazette of the Republic of Indonesia Year 1992 Number 37, Supplement to the State Gazette of the Republic of Indonesia Number 3477);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
3. Government Regulation Number 76 of 1992 concerning Employer Pension Funds (State Gazette of the Republic of Indonesia Year 1992 Number 120, Supplement to the State Gazette of the Republic of Indonesia Number 3507);
4. Government Regulation Number 77 of 1992 concerning Financial Institution Pension Funds (State Gazette of the Republic of Indonesia Year 1992 Number 127, Supplement to the State Gazette of the Republic of Indonesia Number 3508);

DECIDING:

To Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE ADMINISTRATION OF PENSION PROGRAMS BASED ON SHARIA PRINCIPLES.

CHAPTER I
GENERAL PROVISIONS

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

1. Pension Fund is a legal entity that manages and runs a program promising pension benefits as referred to in Law Number 11 of 1992 concerning Pension Funds.
2. Pension Program is any program that aims to provide pension benefits for participants as referred to in Law Number 11 of 1992 concerning Pension Funds.
3. Sharia Principles are Islamic legal provisions based on fatwas and/or Sharia compliance statements from the National Sharia Council of the Indonesian Ulema Council.
4. Pension Program Based on Sharia Principles is a Pension Program administered based on Sharia Principles.
5. Pension Fund Based on Sharia Principles, hereinafter referred to as Sharia Pension Fund, is a Pension Fund whose entire activities are administered based on Sharia Principles.
6. Employer Pension Fund, hereinafter abbreviated as DPPK, is a Pension Fund formed by a person or entity that employs employees, as the founder, to administer a defined benefit pension program or a defined contribution pension program, for the benefit of some or all of its employees as participants, and which creates obligations for the employer as referred to in Law Number 11 of 1992 concerning Pension Funds.
7. Financial Institution Pension Fund, hereinafter abbreviated as DPLK, is a Pension Fund formed by a bank or life insurance company to administer a defined contribution pension program for individuals, whether employees or self-employed workers, separate from the Employer Pension Fund for employees of the respective bank or life insurance company as referred to in Law Number 11 of 1992 concerning Pension Funds.
8. Pension Fund Regulations, hereinafter abbreviated as PDP, are regulations containing provisions that serve as the basis for the administration of pension programs as referred to in Law Number 11 of 1992 concerning Pension Funds.
9. Sharia Unit is a unit formed by a DPPK to administer a Pension Program Based on Sharia Principles.
10. Sharia Unit Manager is the DPPK management appointed by the founder as the person responsible for the administration of the Sharia Unit.
11. Founder is:
    a. a person or entity that forms a DPPK; or b. a bank or life insurance company that forms a DPLK, as referred to in Law Number 11 of 1992 concerning Pension Funds.
12. Sharia Supervisory Board, hereinafter abbreviated as DPS, is a board responsible for providing advice and suggestions and supervising the fulfillment of Sharia Principles in the administration of Pension Programs Based on Sharia Principles.
13. National Sharia Council of the Indonesian Ulema Council is an Islamic institution with the task and function of establishing fatwas and supervising their implementation in order to grow and develop business in the fields of finance, business, and the Sharia economy in Indonesia.
14. Sharia Investment Package is a collection of investment types based on Sharia Principles offered by a DPLK.
15. Contract is a legal bond/relationship between a statement of making a bond (ijab) and a statement of accepting the bond (qabul) made between two or more parties, in accordance with Sharia Principles.
16. Hibah Contract is a Contract consisting of the donation of funds (mauhub bih) from the employer (wahib) to the worker (mauhub lah) in the administration of Pension Programs Based on Sharia Principles.
17. Hibah bi Syarth Contract is a Hibah Contract that only becomes effective (valid) if certain conditions are met.
18. Hibah Muqayyadah Contract is 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 due date (locking in).
19. Wakalah Contract is a Contract consisting of the delegation of authority by the delegator to another party in matters that can be delegated.
20. Wakalah bil Ujrah Contract is a Wakalah Contract with compensation (ujrah).
21. Mudharabah Contract is a business cooperation contract between a Pension Fund administering a Pension Program Based on Sharia Principles as the fund owner (shahibul Mal) and another party as the manager (mudharib), with profits shared according to an agreed ratio, while losses are borne by the Pension Fund.
22. Ijarah Contract is a Contract for the disbursement of funds for the transfer of the right to use (benefit) of goods or services, for a certain period with rental payments (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.
23. Ta’zir Fund is funds paid by the employer to a Pension Fund administering a Pension Program Based on Sharia Principles as a consequence of late payment of contributions by the employer, which is used as a social fund.
24. Financial Services Authority, hereinafter abbreviated as OJK, is an independent institution having the functions, tasks, and authorities for regulation, supervision, examination, and investigation as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.

CHAPTER II
ADMINISTRATION OF PENSION PROGRAMS BASED ON SHARIA PRINCIPLES

Article 2
(1) Pension Programs may be administered based on Sharia Principles.
(2) The administration of Pension Programs Based on Sharia Principles as referred to in paragraph (1) may only be done by:
a. establishing a Sharia Pension Fund; b. converting a Pension Fund into a Sharia Pension Fund;
c. forming a Sharia Unit in a DPPK; or
d. selling Sharia Investment Packages in a DPLK.

CHAPTER III
METHODS OF ADMINISTRATION OF PENSION PROGRAMS BASED ON SHARIA PRINCIPLES

First Section
Establishment of Sharia Pension Funds

Article 3
The establishment of Sharia Pension Funds as referred to in Article 2 paragraph (2) letter a is carried out by the Founder by submitting an application for the approval of the Sharia Pension Fund to the OJK.

Article 4
(1) The application for approval as referred to in Article 3 is submitted based on the provisions of legislation in the field of Pension Funds and this Financial Services Authority Regulation. (2) In the context of the application for approval as referred to in paragraph (1), the PDP must contain the minimum contents as regulated in the provisions of legislation in the field of Pension Funds and additional matters as follows:
a. the purpose and objectives of the Pension Fund to administer Pension Programs Based on Sharia Principles; b. the Contract used;
c. the procedure for the appointment, replacement, and re-appointment of the DPS;
d. the term of office of the DPS; e. the rights, obligations, and responsibilities of the DPS; and f. provisions regarding Ta’zir Funds, for DPPKs.
(3) The application for approval as referred to in paragraph (1) must attach documents as regulated in the provisions of legislation in the field of Pension Funds and additional documents as follows:
a. proof of expertise in the field of Pension Funds and Sharia finance from at least 1 (one) member of the management or executor of the management's duties; b. a decision letter from the Founder regarding the appointment of the DPS; and
c. a recommendation from the National Sharia Council of the Indonesian Ulema Council regarding the appointment of the DPS.
(4) The application for approval as referred to in paragraph (1) is submitted before or simultaneously with the application for the assessment of competence and propriety for prospective management members, prospective executors of the management's duties, prospective supervisory board members, and prospective DPS to the OJK. (5) The assessment of competence and propriety as referred to in paragraph (4) is carried out based on the Financial Services Authority Regulation regarding the assessment of competence and propriety.

Article 5
Pension Funds that have received approval as Sharia Pension Funds must include the word "sharia" in the name of the Sharia Pension Fund.

Second Section
Conversion of Pension Funds into Sharia Pension Funds

Article 6
Pension Funds may be converted into Sharia Pension Funds as referred to in Article 2 paragraph (2) letter b with the following conditions:
a. the Pension Fund provides information about the conversion plan to participants; and b. the Pension Fund adjusts Pension Fund assets that are not in accordance with Sharia Principles so that they are in accordance with Sharia Principles.

Article 7
(1) Conversion as referred to in Article 6 is carried out by the Founder by submitting an application for approval of changes to the PDP to the OJK.
(2) The application for approval of changes to the PDP as referred to in paragraph (1) is submitted based on the provisions of legislation in the field of Pension Funds and this Financial Services Authority Regulation. (3) Changes to the PDP in the context of the application for approval as referred to in paragraph (1) must contain the minimum contents as regulated in the provisions of legislation in the field of Pension Funds and additional matters as follows:
a. the purpose and objectives of the Pension Fund to administer Pension Programs Based on Sharia Principles; b. the Contract used;
c. the procedure for the appointment, replacement, and re-appointment of the DPS;
d. the term of office of the DPS; e. the rights, obligations, and responsibilities of the DPS; and f. provisions regarding Ta’zir Funds, for DPPKs.
(4) The application for approval of changes to the PDP as referred to in paragraph (1) must be accompanied by documents as regulated in the provisions of legislation in the field of Pension Funds and additional documents as follows:
a. proof of expertise in the field of Pension Funds and Sharia finance from at least 1 (one) member of the management or executor of the management's duties; b. a decision letter from the Founder regarding the appointment of the DPS;
c. investment guidelines, for DPPKs;
d. a recommendation from the National Sharia Council of the Indonesian Ulema Council regarding the appointment of the DPS; e. proof of notification regarding the conversion plan to Pension Fund participants; and f. a statement from the management or executor of the management's duties regarding the implementation of the adjustment of Pension Fund assets that are not in accordance with Sharia Principles so that they are in accordance with Sharia Principles. (5) The application for approval of changes to the PDP as referred to in paragraph (1) is submitted before or simultaneously with the application for the assessment of competence and propriety for prospective DPS. (6) The assessment of competence and propriety as referred to in paragraph (5) is carried out based on the Financial Services Authority Regulation regarding the assessment of competence and propriety.

Article 8
Pension Funds that have received approval for changes to the PDP must include the word "sharia" in the name of the Sharia Pension Fund.

Third Section
Formation of Sharia Units in DPPKs

Article 9
(1) DPPKs may form Sharia Units.
(2) DPPKs forming Sharia Units must meet the following conditions:
a. having Pension Fund management appointed as the Sharia Unit Manager; b. having prospective participants for the Sharia Unit; and
c. separating the assets and liabilities of the Sharia Unit from the assets and liabilities of the non-Sharia Unit DPPK.
(3) In the event that prospective participants for the Sharia Unit as referred to in paragraph (2) letter b come from existing DPPK participants prior to the formation of the Sharia Unit, the Pension Fund must:
a. provide information to the relevant participants that their participation will be transferred to the Sharia Unit; and b. request a statement of willingness from each participant who will become a participant in the Sharia Unit. (4) The assets of the Sharia Unit as referred to in paragraph (2) letter c must be adjusted based on Sharia Principles.

Article 10
(1) The formation of Sharia Units as referred to in Article 9 paragraph (1) is carried out by the Founder by submitting an application for approval of changes to the PDP to the OJK. (2) The application for approval of changes to the PDP as referred to in paragraph (1) is submitted based on the provisions of legislation in the field of Pension Funds and this Financial Services Authority Regulation. (3) Changes to the PDP as referred to in paragraph (1) must contain the minimum contents of the PDP as referred to in the provisions of legislation in the field of Pension Funds and additional matters as follows:
a. the purpose and objectives of the Pension Fund to form a Sharia Unit; b. the Contract used;
c. the procedure for the appointment, replacement, and re-appointment of the DPS;
d. the term of office of the DPS; e. the rights, obligations, and responsibilities of the DPS; f. provisions regarding Ta’zir Funds; and g. the assets and liabilities of the Sharia Unit. (4) The application for approval of changes to the PDP as referred to in paragraph (1) must attach documents as regulated in the provisions of legislation in the field of Pension Funds and additional documents as follows:
a. a decision letter from the Founder regarding the appointment of the Sharia Unit Manager; b. proof of expertise in the field of Pension Funds and Sharia finance for the management party appointed by the Founder as the Sharia Unit Manager;
c. a decision letter from the Founder regarding the appointment of the DPS;
d. investment guidelines; e. a recommendation from the National Sharia Council of the Indonesian Ulema Council regarding the appointment of the DPS; f. proof of notification of information to participants as referred to in Article 9 paragraph (3) letter a; g. a statement from the Founder regarding the number of prospective participants for the Sharia Unit and the assets of the Sharia Unit; and h. a statement from Pension Fund participants who choose to become participants in the Sharia Unit. (5) The application for approval of changes to the PDP as referred to in paragraph (1) is submitted before or simultaneously with the application for the assessment of competence and propriety for prospective DPS. (6) The assessment of competence and propriety as referred to in paragraph (5) is carried out based on the Financial Services Authority Regulation regarding the assessment of competence and propriety.

Article 11
(1) In the event that there are participants who choose to become participants in the Sharia Unit, the Pension Fund must separate the assets and liabilities of participants who choose the Sharia Unit within a maximum of 30 (thirty) days from the date of approval of the changes to the PDP. (2) The separation of assets and liabilities as referred to in paragraph (1) is carried out proportionally and regulated in the PDP. (3) The PDP may regulate the mechanism for the transfer of DPPK participants to the Sharia Unit after the Sharia Unit is formed.

Fourth Section
Sale of Sharia Investment Packages in DPLKs

Article 12
DPLKs may sell Sharia Investment Packages.

Article 13
(1) The Founder of a DPLK that will sell Sharia Investment Packages as referred to in Article 12 must submit an application for approval of changes to the PDP to the OJK. (2) The application for approval of changes to the PDP as referred to in paragraph (1) is submitted based on the provisions of legislation in the field of Pension Funds and this Financial Services Authority Regulation. (3) The PDP as referred to in paragraph (1) must contain the minimum contents of the PDP as referred to in the provisions of legislation in the field of Pension Funds and additional matters as follows:
a. the types of available Sharia investments for participants; b. the Contract used;
c. the procedure for the appointment, replacement, and re-appointment of the DPS;
d. the term of office of the DPS; and e. the rights, obligations, and responsibilities of the DPS.
(4) The application for approval of changes to the PDP as referred to in paragraph (1) must attach documents as regulated in the provisions of legislation in the field of Pension Funds and additional documents as follows:
a. proof of expertise in the field of Pension Funds and Sharia finance from at least 1 (one) executor of the management's duties; b. a decision letter from the Founder regarding the appointment of the DPS; and
c. a recommendation from the National Sharia Council of the Indonesian Ulema Council regarding the appointment of the DPS.
(5) The application for approval of changes to the PDP as referred to in paragraph (1) is submitted before or simultaneously with the application for the assessment of competence and propriety for prospective DPS. (6) The assessment of competence and propriety as referred to in paragraph (5) is carried out based on the Financial Services Authority Regulation regarding the assessment of competence and propriety.

CHAPTER IV
CONTRACTS

Article 14
The administration of Pension Programs Based on Sharia Principles must use Contracts.

Article 15
(1) Contracts as referred to in Article 14 are:
a. Hibah bi Syarth Contract; b. Hibah Muqayyadah Contract;
c. Wakalah Contract;
d. Wakalah bil Ujrah Contract; e. Mudharabah Contract; f. Ijarah Contract; and/or g. other Contracts issued by the National Sharia Council of the Indonesian Ulema Council. (2) Contracts as referred to in paragraph (1) letter a or letter b are used between the employer and participants in the case of contribution payments. (3) Contracts as referred to in paragraph (1) letter c or letter d are used between the employer or participants, and the Pension Fund administering the Pension Program Based on Sharia Principles. (4) Contracts as referred to in paragraph (1) letter d or letter e are used between the Pension Fund administering the Pension Program Based on Sharia Principles and third parties that carry out activities based on the delegation of authority from the Pension Fund administering the Pension Program Based on Sharia Principles with compensation/fee. (5) Contracts as referred to in paragraph (1) letter f are used between the Pension Fund administering the Pension Program Based on Sharia Principles and third parties for the transfer of the right to use (benefit) of goods or services, for a certain period with rental payments (ujrah).

Article 16
Pension Funds administering Pension Programs Based on Sharia Principles may use Contracts other than those referred to in Article 14 paragraph (1) provided that they first:
a. obtain approval from the DPS; b. obtain validation from the National Sharia Council of the Indonesian Ulema Council; and
c. report the use of such Contracts to the OJK.

CHAPTER V
CONTRIBUTIONS, PENSION BENEFITS, AND WEALTH MANAGEMENT

First Section
Contributions

Article 17
The payment of contributions for the administration of Pension Programs Based on Sharia Principles must be done based on Sharia Principles.

Article 18
(1) Employer contributions and participant contributions that have not been paid after two and a half months from their due date are declared as employer debts and are subject to sanctions (ta’zir) in the form of fines calculated from the first day of the month of the contribution payment due date. (2) The amount of sanctions (ta’zir) in the form of fines as referred to in paragraph (1) is equal to a reasonable monthly fine from the accumulated contribution arrears. (3) Fines as referred to in paragraph (2) become Ta’zir Funds which are not included in the Pension Fund's assets and must be used as social funds. (4) Employers of DPPKs that submit applications for changes to the PDP in the context of administering Pension Programs Based on Sharia Principles as referred to in Article 7 paragraph (2) and Article 10 paragraph (2) must settle existing contribution debts and late payment interest that existed at the time the changes to the PDP were approved. (5) In the event that an employer dissolves and there are contribution debts and/or Ta’zir Fund debts, the employer may be exempted from such debts if the following conditions are met:
a. the employer's assets are insufficient to pay contribution debts and/or Ta’zir Fund debts; and b. written approval is obtained from the OJK.

Second Section
Pension Benefits

Article 19
Pension benefits for Pension Funds administering Pension Programs Based on Sharia Principles must be paid in accordance with Sharia Principles.

Third Section
Wealth Management

Article 20
The wealth of Pension Funds administering Pension Programs Based on Sharia Principles must be managed based on Sharia Principles.

CHAPTER VI
SHARIA SUPERVISORY BOARD

Article 21
(1) Every Pension Fund administering Pension Programs Based on Sharia Principles must have at least 1 (one) DPS.
(2) The DPS as referred to in paragraph (1) is part of the organ of the Pension Fund administering Pension Programs Based on Sharia Principles.
(3) The term of office of the DPS is a maximum of 5 (five) years and may be re-appointed.
(4) The appointment of the DPS as referred to in paragraph (1) is established by a decision letter from the Founder based on a recommendation from the National Sharia Council of the Indonesian Ulema Council. (5) The content of the DPS appointment letter as referred to in paragraph (4) must at least contain the name of the DPS and the term of office of the DPS.

Article 22
(1) The DPS as referred to in Article 21 paragraph (1) has the tasks:
a. supervising the administration of Pension Programs Based on Sharia Principles for compliance with Sharia Principles; b. providing advice regarding the Sharia aspects of the administration of Pension Programs Based on Sharia Principles; and
c. making reports that at least contain the compliance of the administration of Pension Programs Based on Sharia Principles with Sharia Principles.
(2) Supervision as referred to in paragraph (1) letter a is conducted at least on:
a. Contracts used; b. contribution management;

c. investment placement;
d. pension benefits; and e. other benefits.
(3) The DPS Report as referred to in paragraph (1) letter c must contain at least the results of supervision over matters as referred to in paragraph (2).

Article 23
In carrying out duties as referred to in Article 22 paragraph (1), the DPS has the right to obtain:
a. information, documents, and data from the management or acting management of the Pension Fund regarding the administration of the Sharia-Based Pension Program in a complete and accurate manner; and b. salary/honorarium and other allowances.

Article 24
The position of DPS ends if:
a. the term of office expires; b. death;
c. resignation;
d. dismissed by the Founder; e. sentenced to a criminal penalty that has permanent legal force; or f. the Sharia-Based Pension Program administered by the Pension Fund ends.

CHAPTER VII
REPORTING

Article 25
(1) Every Pension Fund that administers a Sharia-Based Pension Program is required to submit periodic reports to the OJK, consisting of:
a. reports as regulated in statutory regulations in the field of Pension Funds; and b. reports on the results of DPS supervision.
(2) The content, format, and procedures for submitting reports as referred to in paragraph (1) letter a are regulated in statutory regulations in the field of Pension Funds. (3) For DPLKs that sell Sharia Investment Packages, the assessment and report on the results of the risk level assessment for Sharia Investment Packages become part of the assessment and report on the risk level assessment of the DPLK. (4) Pension Funds that have a Sharia Unit, in addition to being required to submit reports as referred to in paragraph (1), are required to submit reports regarding the Sharia Unit. (5) Regulations regarding the content, format, and procedures for submitting reports on the results of DPS supervision as referred to in paragraph (1) letter b and reports regarding the Sharia Unit as referred to in paragraph (4) are regulated in an OJK Circular Letter.

CHAPTER VIII
DISSOLUTION OF SHARIA PENSION FUNDS, CLOSURE OF SHARIA UNITS OF DPPKS, AND CESSATION OF SALES OF SHARIA INVESTMENT PACKAGES BY DPLKS

First Section
Dissolution of Sharia Pension Funds

Article 26
(1) The dissolution of a Sharia Pension Fund is carried out based on an OJK Regulation regarding the dissolution and liquidation of Pension Funds.
(2) The settlement of the liquidation process of a dissolved Sharia Pension Fund must be carried out by a liquidation team in accordance with Sharia Principles.

Second Section
Closure of Sharia Units of DPPKs

Article 27
(1) The closure of a Sharia Unit is carried out in the event that:
a. the DPPK that established the Sharia Unit is dissolved; or b. the Sharia Unit has no participants for 1 (one) consecutive year.
(2) The closure of a Sharia Unit in the event as referred to in paragraph (1) letter b is carried out through an amendment to the PDP.
(3) In the event that the closure of a Sharia Unit has been determined by the OJK due to reasons as referred to in paragraph (1) letter a, the liquidation team carries out the settlement of the liquidation process in accordance with Sharia Principles.

Third Section
Cessation of Sales of Sharia Investment Packages by DPLKs

Article 28
(1) The cessation of sales of Sharia Investment Packages by DPLKs is carried out by the Founder by submitting a request for approval of an amendment to the PDP containing the background for the closure of the Sharia Investment Package to the OJK. (2) The cessation of sales of Sharia Investment Packages as referred to in paragraph (1) is determined by the OJK within a maximum of 60 (sixty) working days calculated from the receipt of a complete closure request. (3) In the event that the cessation of sales of Sharia Investment Packages has been determined by the OJK, the DPLK is required to transfer participant assets from the Sharia Investment Package to a DPLK that administers a Sharia-Based Pension Program. (4) The selection of a DPLK that administers a Sharia-Based Pension Program as referred to in paragraph (3) must be carried out with the consent of the participants. (5) The transfer of participant assets of Sharia Investment Packages as referred to in paragraph (3) must be carried out within a maximum of 30 (thirty) days from the date of determination of the cessation of sales of Sharia Investment Packages by the OJK.

CHAPTER IX
SANCTIONS

Article 29
(1) Every Pension Fund that administers a Sharia-Based Pension Program that does not meet the provisions as referred to in Article 2 paragraph (2), Article 5, Article 8, Article 9 paragraph (3) and (4), Article 11 paragraph (1), Article 13 paragraph (1), Article 14, Article 17, Article 18 paragraph (3) and (4), Article 19, Article 20, Article 21 paragraph (1), Article 25 paragraph (1) and (4), and Article 28 paragraph (3), (4), and (5) of this OJK Regulation is subject to administrative sanctions in the form of a written warning. (2) In the event that a Pension Fund receives administrative sanctions as referred to in paragraph (1) cumulatively five (5) times or more within a period of 2 (two) years, the OJK may request the management, acting management, and/or the supervisory board to undergo a re-evaluation of capability and propriety.

CHAPTER X
TRANSITIONAL PROVISIONS

Article 30
(1) DPLKs that have received approval to sell Sharia Investment Packages before this OJK Regulation is enacted must meet the provisions of this OJK Regulation within a maximum of 1 (one) year from the enactment of this OJK Regulation. (2) The OJK may issue a written order to DPLKs that do not meet the provisions as referred to in paragraph (1) to cease the sale of Sharia Investment Packages.

CHAPTER XI
OTHER PROVISIONS

Article 31
Pension Funds that have received approval as Sharia Pension Funds cannot be converted into Pension Funds with conventional principles.

CHAPTER XII
CLOSING PROVISIONS

Article 32
(1) Matters related to Pension Funds not regulated in this OJK Regulation remain subject to statutory regulations in the field of Pension Funds.
(2) The obligation to submit reports on the results of DPS supervision as referred to in Article 25 paragraph (1) letter b and reports regarding the Sharia Unit as referred to in Article 25 paragraph (4) shall apply since an OJK Circular Letter regarding such reports is established.

Article 33
This OJK Regulation shall come into force on the date of enactment.

In order that everyone may know it, it is ordered to enact this OJK Regulation by placing it in the State Gazette of the Republic of Indonesia.
Determined in Jakarta on 22 September 2016
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD
Enacted in Jakarta on 26 September 2016
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 187 A copy in accordance with the original Director of Legal Affairs 1 Department of Law signed Yuliana