Financial Services Authority Regulation Number 34/POJK.03/2018 on Reassessment of Key Parties of Financial Service Institutions

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 34 /POJK.03/2018
CONCERNING
REASSESSMENT OF KEY PARTIES OF FINANCIAL SERVICE INSTITUTIONS BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that financial service institutions play a very important role in driving national economic growth through the management and utilization of public funds; b. that financial service institutions need to be owned and managed well by parties who meet the requirements of capability and propriety;
c. that reassessment is part of the regulation and supervision of the financial service sector in accordance with the authority of the Financial Services Authority as referred to in Article 8 letter d of Law Number 21 of 2011 concerning the Financial Services Authority;
d. that the reassessment of parties who own or manage financial service institutions is carried out based on appropriate, clear, and transparent procedures and stages; e. that based on the considerations referred to in letters a through d, it is necessary to establish a Financial Services Authority Regulation concerning Reassessment of Key Parties of Financial Service Institutions.

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);
2. Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1992 Number 31, Supplement to the State Gazette of the Republic of Indonesia Number 3472) as amended by Law Number 10 of 1998 concerning Amendment to Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1998 Number 182, Supplement to the State Gazette of the Republic of Indonesia Number 3790);
3. 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);
4. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608);
5. Law Number 21 of 2008 concerning Sharia Banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette of the Republic of Indonesia Number 4867);
6. Law Number 40 of 2014 concerning Insurance (State Gazette of the Republic of Indonesia Year 2014 Number 337, Supplement to the State Gazette of the Republic of Indonesia Number 5618);
7. Law Number 1 of 2016 concerning Guarantee (State Gazette of the Republic of Indonesia Year 2016 Number 9, Supplement to the State Gazette of the Republic of Indonesia Number 5835);

DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING REASSESSMENT OF KEY PARTIES OF FINANCIAL SERVICE INSTITUTIONS.

CHAPTER I
GENERAL PROVISIONS

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

1. Financial Service Institution, hereinafter abbreviated as FSI, is an institution that carries out activities in the Banking, Capital Market, Insurance, Pension Fund, Financing Institution, and Other Financial Service Institution sectors, which include:
   a. 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 loans and/or other forms to improve the living standards of the people, consisting of:

1. Conventional General Bank is a conventional bank and branch offices of banks located abroad that in their activities provide services in payment circulation, and representative offices of banks located abroad;
2. Sharia General Bank is a sharia bank that in its activities provides services in payment circulation, and representative offices of banks located abroad;
3. Rural Bank is a conventional bank that in its activities does not provide services in payment circulation; and
4. Sharia Rural Financing Bank is a sharia bank that in its activities does not provide services in payment circulation;
   b. Securities Company is a party that carries out business activities as an underwriter of securities, securities broker-intermediary, and/or investment manager;
   c. Investment Advisor is a company that provides advice to other parties regarding the sale or purchase of securities by receiving service fees;
   d. Insurance Company is an insurance company, sharia insurance company, reinsurance company, sharia reinsurance company, insurance broker company, reinsurance broker company, and insurance loss assessor company; e. Pension Fund is a legal entity that manages and runs a program that promises pension benefits, including those that carry out all business activities based on sharia principles; f. Financing Company is a business entity that carries out financing activities for the procurement of goods and/or services, including those that carry out all business activities based on sharia principles; g. Guarantee Institution is a guarantee company, sharia guarantee company, re-guarantee company, and sharia re-guarantee company that carries out guarantee activities; h. Venture Capital Company, hereinafter abbreviated as VCC, is a business entity that carries out venture capital business activities, venture fund management, fee-based service activities, and other business activities with the approval of the Financial Services Authority, including those that carry out all business activities based on sharia principles;
   i. Pawnshop Company is a private pawnshop company and a government pawnshop company, including those that carry out business activities based on sharia principles.

2. Key Party is a party that owns, manages, supervises, and/or has significant influence on the FSI, including those who no longer own, manage, supervise, and/or have influence at the time the reassessment is conducted.
3. Controlling Shareholder, hereinafter abbreviated as CS, is a legal entity, individual, and/or business group that owns shares or shares equivalent to shares of the FSI and has the ability to exercise control over the FSI.
4. Control is an action aimed at influencing the management and/or policy of a company, including the FSI, in any way, either directly or indirectly.
5. General Meeting of Shareholders, hereinafter abbreviated as GMS, is:
   a. a company organ that has authority not given to the Board of Directors or Board of Commissioners within the limits determined in the law concerning limited liability companies and/or the articles of association for FSIs with the legal form of a limited liability company; or b. an organ or party equivalent to letter a, for FSIs with legal forms or business entities other than a limited liability company.
6. Board of Directors is:
   a. a company organ that has the authority and is fully responsible for management for the interests of the company, in accordance with the purpose and objectives of the company and represents the company, both inside and outside of court, in accordance with the provisions of the articles of association for FSIs with the legal form of a limited liability company; b. an organ or party equivalent to letter a, for FSIs with legal forms or business entities other than a limited liability company;
   c. the head of a branch office and one level below the head of a branch office for branch offices of banks located abroad; or
   d. the head of a representative office for representative offices of banks located abroad.
7. Board of Commissioners is:
   a. a company organ tasked with carrying out general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors for FSIs with the legal form of a limited liability company; or b. an organ or party equivalent to letter a, for FSIs with legal forms or business entities other than a limited liability company.
8. Sharia Supervisory Board is a part of the organ of Insurance Companies, employer pension funds, financial institution pension funds, Financing Companies, Guarantee Institutions, VCCs, or Pawnshop Companies that has the task and supervision over the implementation of business activities to ensure they are in accordance with sharia principles.
9. Controlling Party of an Insurance Company is a party that directly or indirectly has the ability to determine the Board of Directors and Board of Commissioners and/or influence the actions of the Board of Directors and/or Board of Commissioners of the Insurance Company.
10. Internal Auditor is an official at an Insurance Company who is responsible for evaluating and improving the effectiveness of risk management, control, and corporate governance processes, working independently and in accordance with practice standards.
11. Company Actuary is an official at an insurance company, sharia insurance company, reinsurance company, and sharia reinsurance company, who is appointed and responsible for managing the financial impact of risks faced by the company, working independently and in accordance with practice standards.
12. Executive Official is a Bank official who is directly responsible to members of the Board of Directors or has significant influence on Bank policy and/or operations.
13. Controlling Key Party is the CS and/or Controlling Party of an Insurance Company.
14. Management Key Party is members of the Board of Directors, executors of the duties of the management body of Financial Institution Pension Funds, members of the Board of Commissioners, or members of the Sharia Supervisory Board.
15. Official Key Party is Internal Auditors, Company Actuaries, or Executive Officials.

Article 2
Key Parties subject to the provisions of this Financial Services Authority Regulation include:
a. for Banks:

1. CS;
2. members of the Board of Directors; and
3. members of the Board of Commissioners; and
4. Executive Officials;
   b. for Securities Companies:
5. CS;
6. members of the Board of Directors; and
7. members of the Board of Commissioners;
   c. for Investment Advisors:
8. CS;
9. members of the Board of Directors; and
10. members of the Board of Commissioners;
    d. for Insurance Companies:
11. Controlling Party of an Insurance Company;
12. members of the Board of Directors;
13. members of the Board of Commissioners;
14. members of the Sharia Supervisory Board;
15. Internal Auditors; and
16. Company Actuaries;
    e. for Employer Pension Funds:
17. members of the Board of Directors;
18. members of the Board of Commissioners; and
19. members of the Sharia Supervisory Board;
    f. for Financial Institution Pension Funds:
20. executors of the duties of the management body; and
21. members of the Sharia Supervisory Board; and
    g. for Financing Companies, Guarantee Institutions, VCCs, and Pawnshop Companies:
22. CS;
23. members of the Board of Directors;
24. members of the Board of Commissioners; and
25. members of the Sharia Supervisory Board.

Article 3
Reassessment of Key Parties is conducted by the Financial Services Authority in the event of indications of involvement and/or responsibility for integrity, financial feasibility, financial reputation, and/or competence issues occurring at the FSI.

CHAPTER II
SCOPE OF REASSESSMENT

Article 4
Reassessment of Controlling Key Parties is conducted in the event of indications of involvement and/or responsibility for integrity and/or financial feasibility issues, including:
a. actions, both directly and indirectly, consisting of:

1. influencing and/or ordering Management Key Parties, Official Key Parties, and/or FSI employees to hide and/or obscure violations of certain regulations or financial conditions and/or actual transactions;
2. influencing and/or ordering Management Key Parties, Official Key Parties, and/or FSI employees to provide unfair benefits to shareholders, Key Parties, FSI employees, and/or other parties that can harm or reduce FSI profits;
3. influencing and/or ordering Management Key Parties, Official Key Parties, and/or FSI employees to commit acts that violate prudential principles in the financial service sector and/or good FSI management principles; and/or
4. influencing and/or ordering Management Key Parties, Official Key Parties, and/or FSI employees who carry out business activities based on sharia principles to commit acts that violate sharia principles in the sharia financial service sector;
   b. proven to have committed a criminal offense that has been decided by a court and has permanent legal force as referred to in the Financial Services Authority Regulation concerning the assessment of capability and propriety of key parties of financial service institutions;
   c. causing the FSI to experience difficulties that endanger the continuity of the FSI's business and/or can endanger the financial service industry;
   d. not carrying out orders of the Financial Services Authority to carry out and/or not carry out certain actions; e. having non-performing loans and/or financing at the FSI and/or becoming a controller, member of the board of directors, member of the board of commissioners, or equivalent of a company that has non-performing loans and/or financing; f. proven to be declared bankrupt and/or becoming a shareholder, member of the board of directors, member of the board of commissioners, or equivalent, who is declared guilty of causing a company to be declared bankrupt or have its business license revoked; g. not carrying out necessary measures when the FSI faces capital and/or liquidity difficulties; and/or h. refusing to provide commitments and/or not fulfilling commitments agreed upon with the Financial Services Authority and/or the government.

Article 5
Reassessment of Management Key Parties and/or Official Key Parties is conducted in the event of indications of involvement and/or responsibility for integrity, financial reputation, and/or competence issues, including:
a. actions, both directly or indirectly, consisting of:

1. hiding and/or obscuring violations of certain regulations or financial conditions and/or actual transactions;
2. providing unfair benefits to shareholders, Key Parties, FSI employees, and/or other parties that can harm or reduce FSI profits;
3. committing acts that violate prudential principles in the financial service sector and/or good FSI management principles; and/or
4. violating sharia principles in the sharia financial service sector;
   b. proven to have committed a criminal offense that has been decided by a court and has permanent legal force as referred to in the Financial Services Authority Regulation concerning the assessment of capability and propriety of key parties of financial service institutions;
   c. causing the FSI to experience difficulties that endanger the continuity of the FSI's business and/or can endanger the financial service industry;
   d. not carrying out orders of the Financial Services Authority to carry out and/or not carry out certain actions; e. having non-performing loans and/or financing at the FSI and/or becoming a controller, member of the board of directors, member of the board of commissioners, or equivalent of a company that has non-performing loans and/or financing; f. proven to be declared bankrupt and/or becoming a member of the board of directors, member of the board of commissioners, or equivalent, who is declared guilty of causing a company to be declared bankrupt or have its business license revoked; g. not carrying out strategic management in order to develop a healthy FSI; h. refusing to provide commitments and/or not fulfilling commitments agreed upon with the Financial Services Authority and/or the government; and/or
   i. committing or playing a role in the occurrence of violations or deviations of activities of representative offices of banks located abroad, for the head of representative offices of banks located abroad.

CHAPTER III
PROCEDURE FOR REASSESSMENT

Article 6
(1) The Financial Services Authority conducts reassessment based on evidence, data, and/or information obtained from supervision results or other information.
(2) Reassessment as referred to in paragraph (1) is carried out with the following steps:
a. clarification of evidence, data, and/or information to the Key Party being reassessed; b. determination and submission of the preliminary reassessment results to the Key Party being reassessed;
c. response from the Key Party being reassessed to the preliminary reassessment results; and
d. determination and notification of the final reassessment results to the Key Party being reassessed.
(3) The Key Party being reassessed is given the opportunity to submit a response to the request for clarification of evidence, data, and/or information as referred to in paragraph (2) letter a, at the latest 10 (ten) working days calculated from the date of the clarification request from the Financial Services Authority. (4) In the event that the Key Party being reassessed does not use the right to submit clarification of evidence, data, and/or information within the time limit as referred to in paragraph (3), the Financial Services Authority carries out the next step of the reassessment. (5) The Key Party being reassessed is given the opportunity to submit a response to the preliminary reassessment results as referred to in paragraph (2) letter c, at the latest 10 (ten) working days calculated from the date of the Financial Services Authority's letter. (6) In the event that the Key Party being reassessed does not use the right to submit a response to the preliminary reassessment results within the time limit as referred to in paragraph (5), the Financial Services Authority determines the preliminary reassessment results to become the final reassessment results. (7) In the event that the Financial Services Authority obtains new evidence, data, and/or information before the determination and notification of the final reassessment results as referred to in paragraph (2) letter d, the Financial Services Authority determines the final reassessment results by considering the new evidence, data, and/or information obtained. (8) The determination of the final reassessment results as referred to in paragraph (7) is carried out while still referring to the process as referred to in paragraph (2) letters a through c.

Article 7
The Financial Services Authority determines the final reassessment results directly without following all steps as referred to in Article 6 paragraph (2), in the event that the Key Party being reassessed:
a. is proven to have committed a criminal offense that has been decided by a court and has permanent legal force as referred to in the Financial Services Authority Regulation concerning the assessment of capability and propriety of key parties of financial service institutions; or b. is proven to be declared bankrupt and/or becomes a shareholder, member of the board of directors, member of the board of commissioners, or equivalent, who is declared guilty of causing a company to be declared bankrupt or have its business license revoked.

CHAPTER IV
FINAL RESULTS OF REASSESSMENT

Article 8
(1) The Financial Services Authority determines the final reassessment results for Key Parties with the following predicates:
a. Pass; or b. Fail.
(2) The determination of the final reassessment results as referred to in paragraph (1) is carried out based on the level of involvement and/or responsibility of the Key Party being reassessed.

Article 9
(1) The Financial Services Authority notifies the final reassessment results of Key Parties in writing to the Controlling Key Party, FSI, and the Key Party being reassessed.
(2) In addition to the parties as referred to in paragraph (1), the Financial Services Authority may notify the final reassessment results of Key Parties to other interested parties.

CHAPTER V
CONSEQUENCES OF FINAL REASSESSMENT RESULTS

Article 10
(1) Key Parties who are still in office and are determined with the predicate Pass are declared to meet the requirements to remain as Key Parties.
(2) Controlling Key Parties determined with the predicate Fail because:
a. integrity issues, are prohibited from becoming:

1. Controlling Key Parties or owning shares in the FSI; and/or
2. Management Key Parties and/or Official Key Parties at the FSI; and/or
   b. financial feasibility issues, are prohibited from becoming:
3. Controlling Key Parties or owning shares in the financial service industry where the Key Party is subject to reassessment; and/or
4. Management Key Parties and/or Official Key Parties in the financial service industry where the Key Party is subject to reassessment in the event that the financial feasibility issue is financial reputation.
   (3) Management Key Parties or Official Key Parties determined with the predicate Fail because:
   a. integrity issues, are prohibited from becoming:
5. Controlling Key Parties or owning shares in the FSI; and/or
6. Management Key Parties and/or Official Key Parties at the FSI;
   b. financial reputation issues, are prohibited from becoming:
7. Controlling Key Parties or owning shares in the financial service industry where the Key Party is subject to reassessment; and/or
8. Management Key Parties and/or Official Key Parties in the financial service industry where the Key Party is subject to reassessment; and/or
   c. competence issues, are prohibited from becoming Management Key Parties and/or Official Key Parties in the financial service industry where the Key Party is subject to reassessment.

Article 11
(1) The imposition of a prohibition period on Key Parties determined with the predicate Fail as referred to in Article 10 paragraph (2) and/or paragraph (3) is established:
a. for a period of 3 (three) years:

1. for Controlling Key Parties in the event of proven actions as referred to in Article 4 letter a number 3), letter a number 4), letter d, letter e, letter g, or letter h;

2. for Management Key Parties or Official Key Parties in the event of proven actions as referred to in Article 5 letter a number 3), letter a number 4), letter d, letter e, letter g, or letter h;
   b. for a period of 5 (five) years:

3. for Controlling Key Parties in the event:
   a) proven to have committed actions as referred to in Article 4 letter a number 1) or letter a number 2); or b) proven to have committed actions as referred to in Article 4 letter a number 3), letter a number 4), letter d, letter e, letter g, or letter h, and the said actions:
   i. are committed repeatedly;
   ii. are committed cumulatively; and/or
   iii. are proven to benefit oneself or other parties;

4. for members of Management Key Parties or Official Key Parties in the event:
   a) proven to have committed actions as referred to in Article 5 letter a number 1), letter a number 2), or letter i; or b) proven to have committed actions as referred to in Article 5 letter a number 3), letter a number 4), letter d, letter e, letter g, or letter h, and the said actions:
   i. are committed repeatedly;
   ii. are committed cumulatively; and/or
   iii. are proven to benefit oneself or other parties;
   c. for a period of 20 (twenty) years:

5. for Controlling Key Parties if proven to have committed actions as referred to in Article 4 letter b, letter c, or letter f;

6. for Key Parties of Management or Key Parties of Officials when proven to have committed actions as referred to in Article 5 letter b, letter c, or letter f.

(2) The prohibition period as referred to in paragraph (1) is calculated from:
a. the date of the Financial Services Authority's determination letter as referred to in Article 6 paragraph (2) letter d, in the event it is the final result of the Financial Services Authority's reassessment; or b. the date of a court decision that has permanent legal force declaring the reassessed Key Party proven to have committed a criminal offense as referred to in Article 4 letter b and Article 5 letter b or proven to be declared bankrupt and/or causing bankruptcy as referred to in Article 4 letter f and Article 5 letter f.

Article 12
(1) For Financial Service Institutions other than Islamic banks, Key Parties prohibited from becoming Controlling Key Parties or holding shares as referred to in Article 10 paragraph (2) letter a number 1), paragraph (2) letter b number 1), paragraph (3) letter a number 1), or paragraph (3) letter b number 1):
a. are prohibited from taking actions as Controlling Key Parties; b. are prohibited from exercising rights as shareholders and such shares are not counted in the quorum of the General Meeting of Shareholders; and
c. must transfer all share ownership within a maximum period of 1 (one) year, from the date of being established with the Unfit status.

(2) For Islamic banks, Key Parties prohibited from becoming Controlling Key Parties or holding shares as referred to in Article 10 paragraph (2) letter a number 1), paragraph (2) letter b number 1), paragraph (3) letter a number 1), or paragraph (3) letter b number 1):
a. are prohibited from taking actions as Controlling Key Parties; b. may only exercise rights as shareholders with a maximum amount of 10% (ten percent) of each share in the Islamic bank; and
c. must reduce share ownership to a maximum of 10% (ten percent) in each Islamic bank within a maximum period of 6 (six) months,
from the date of being established with the Unfit status.

(3) Financial Service Institutions must include an explanation in the Financial Service Institution's shareholder list regarding the status of Key Parties as referred to in paragraph (1) and paragraph (2).

(4) In the event that the Key Party established with the Unfit status is a Payment Service Provider from a Bank under the handling or rescue by the Deposit Insurance Corporation, the time limit for the obligation to transfer ownership as referred to in paragraph (1) letter c and paragraph (2) letter c refers to the provisions of legislation.

(5) The Financial Services Authority may establish a separate time limit for the obligation to transfer ownership as referred to in paragraph (1) letter c and paragraph (2) letter c in the event:
a. in the Financial Services Authority's assessment, the aforementioned step needs to be adjusted to the Financial Service Institution's rehabilitation program as regulated in legislation and/or policy in the financial service sector; and/or b. the Key Party is subject to the obligation to transfer all share ownership in more than 1 (one) Financial Service Institution.

(6) Financial Service Institutions must report the transfer of share ownership as referred to in paragraph (1) letter c, paragraph (2) letter c, and paragraph (5) to the Financial Services Authority within a maximum period of 10 (ten) working days after the General Meeting of Shareholders approves the transfer of share ownership.

Article 13
(1) In the event that the reassessed Key Party as referred to in Article 12 paragraph (1) letter c does not transfer all share ownership according to the established time limit:
a. the prohibition period for the Key Party is extended by 20 (twenty) years and does not eliminate the obligation to transfer shares; and b. dividend payments are postponed until the Controlling Key Party transfers share ownership.

(2) For Islamic banks, in the event that the reassessed Key Party as referred to in Article 12 paragraph (2) letter c does not reduce share ownership according to the established amount and time limit:
a. the prohibition period for the Payment Service Provider is extended by 20 (twenty) years and does not eliminate the obligation to reduce share ownership; b. the Payment Service Provider's voting rights are not counted in the General Meeting of Shareholders;
c. the Payment Service Provider's voting rights are not counted in the quorum of the General Meeting of Shareholders;
d. dividends payable to the Payment Service Provider are at most 10% (ten percent) and the remainder is paid after the Payment Service Provider reduces the share ownership amount; and e. the Payment Service Provider's name is announced to the public through 2 (two) mass media with wide circulation.

Article 14
(1) The transfer of share ownership as referred to in Article 12 paragraph (1) letter c, paragraph (2) letter c, or paragraph (5) may be carried out through donation or sale to parties who do not have family relations up to the second degree and/or outside the business group.

(2) In the event that the transfer of share ownership is carried out by transferring shares to parties who have family relations up to the second degree and/or business groups as referred to in paragraph (1) from Key Parties established with the Unfit status:
a. the transfer is not considered as the transfer of share ownership as referred to in Article 12 paragraph (1) letter c, paragraph (2) letter c, and paragraph (5); b. Financial Service Institutions are prohibited from recording the recipient of the transfer in the Financial Service Institution's shareholder list; and
c. the recipient of the transfer does not obtain rights as a shareholder, namely:

1. voting rights are not counted in the General Meeting of Shareholders;
2. voting rights are not counted in the quorum of the General Meeting of Shareholders; and
3. dividends are not handed over until share ownership is transferred to parties who do not have family relations up to the second degree and/or outside the business group.

Article 15
(1) Key Parties prohibited from becoming Management Key Parties and/or Official Key Parties as referred to in Article 10 paragraph (2) letter a number 2), paragraph (2) letter b number 2), paragraph (3) letter a number 2), paragraph (3) letter b number 2), and paragraph (3) letter c:
a. are prohibited from taking actions as Management Key Parties and/or Official Key Parties; and b. must cease to be Management Key Parties and/or Official Key Parties.

(2) Financial Service Institutions must follow up on the consequences as referred to in paragraph (1) within a maximum period of 3 (three) months from the date of notification from the Financial Services Authority.

(3) Financial Service Institutions must report the follow-up as referred to in paragraph (2) to the Financial Services Authority within a maximum period of 10 (ten) working days from:
a. The date of the General Meeting of Shareholders for the dismissal of Management Key Parties; and/or b. The date of dismissal of Official Key Parties.

(4) In the event that Management Key Parties or Official Key Parties as referred to in paragraph (1) still take actions as Management Key Parties or Official Key Parties, the prohibition period for Management Key Parties or Official Key Parties is extended by 20 (twenty) years.

(5) Controlling Key Parties who intentionally allow Unfit Management Key Parties to take actions as Management Key Parties are given the Unfit status with a prohibition period of 20 (twenty) years, preceded by a reassessment as referred to in this Financial Services Authority Regulation.

(6) Board of Directors members who intentionally allow Unfit Official Key Parties to take actions as Official Key Parties are established with the Unfit status with a prohibition period of 3 (three) years, preceded by a reassessment as referred to in this Financial Services Authority Regulation.

(7) Controlling Key Parties or Board of Directors members established with the Unfit status as referred to in paragraph (5) and paragraph (6) are subject to Unfit consequences for integrity issues as referred to in Article 10 paragraph (2) letter a and paragraph (3) letter a.

Article 16
(1) Key Parties subject to consequences as referred to in Article 10 paragraph (2) and paragraph (3) may submit a request for reconsideration of the Unfit status before the consequence time limit expires.

(2) The request for reconsideration as referred to in paragraph (1) may be submitted if it meets the criteria:
a. there is new evidence, data, and/or information regarding the absence, or failure to submit clarification or response during the reassessment; b. there is a court decision with permanent legal force stating that the party as referred to in paragraph (1) is not proven to have committed a criminal offense as referred to in Article 4 letter b and/or Article 5 letter b or not proven to be declared bankrupt and/or become a shareholder, member of the Board of Directors, member of the Board of Commissioners, or equivalent, who is declared guilty of causing a company to be declared bankrupt or have its business license revoked as referred to in Article 4 letter f or Article 5 letter f;
c. as a consequence of the implementation of the Law of the Republic of Indonesia; and/or
d. has served ¾ (three-quarters) of the consequence time limit, and the Key Party:

1. has no negative records during the Unfit declaration; and
2. is committed to contributing significantly to the strengthening or rescue of the industry in the financial service sector realized based on the time limit established by the Financial Services Authority.

(3) The Financial Services Authority has the authority to follow up or not follow up on the request for reconsideration as referred to in paragraph (1).

(4) In the event that the request for reconsideration as referred to in paragraph (3) is followed up, the reconsideration is carried out through the reassessment mechanism according to the provisions as referred to in this Financial Services Authority Regulation.

CHAPTER VI
OTHER PROVISIONS

Article 17
(1) Financial Service Institutions must submit reports updating data and domicile information of Key Parties and/or contactable parties.

(2) The report updating data and domicile information as referred to in paragraph (1) is submitted for the first time to the Financial Services Authority within a maximum period of 1 (one) month since this Financial Services Authority Regulation takes effect.

(3) In the event of changes in data and domicile information as referred to in paragraph (2), Financial Service Institutions submit data and information to the Financial Services Authority at any time.

Article 18
(1) The Financial Services Authority may impose sanctions on affiliated parties involved or participating in acts causing Key Parties to be declared Unfit.

(2) The imposition of sanctions as referred to in paragraph (1) refers to the provisions of legislation.

Article 19
Financial Service Institutions must disclose explanations regarding the status of Key Parties as referred to in Article 12 paragraph (3) in the Financial Service Institution's public report.

CHAPTER VII
SANCTIONS

Article 20
(1) Financial Service Institutions violating provisions as referred to in Article 12 paragraph (3), Article 14 paragraph (2) letter b, Article 15 paragraph (2), Article 17 paragraph (1), and/or Article 19 are subject to administrative sanctions in the form of written warnings or written reprimands and/or replacement of Management Key Parties.

(2) Financial Service Institutions other than Rural Banks and Islamic Rural Financing Banks that violate the obligation to submit reports as referred to in Article 12 paragraph (6) and/or Article 15 paragraph (3) are subject to administrative sanctions in the form of warnings or written reprimands and fines of:
a. Rp1,000,000.00 (one million rupiah) per working day of delay for each report; or b. Rp50,000,000.00 (fifty million rupiah) for each report, for Financial Service Institutions that have not submitted reports exceeding 30 (thirty) working days after the final deadline for report submission.

(3) Rural Banks and Islamic Rural Financing Banks that violate the obligation to submit reports as referred to in Article 12 paragraph (6) and/or Article 15 paragraph (3) are subject to sanctions in the form of warnings or written reprimands and administrative fines of:
a. Rp100,000.00 (one hundred thousand rupiah) per working day of delay for each report; or b. Rp5,000,000.00 (five million rupiah) for each report, for Rural Banks or Islamic Rural Financing Banks that have not submitted reports exceeding 30 (thirty) working days after the final deadline for report submission.

(4) Key Parties prohibited from becoming Controlling Key Parties or holding shares who intentionally do not comply with provisions as referred to in Article 12 paragraph (1) letter c, paragraph (2) letter c and/or Article 15 paragraph (5) are subject to sanctions:
a. in accordance with Article 50 of Law Number 7 of 1992 concerning Banking as amended by Law Number 10 of 1998, for Banks other than Islamic banks; b. in accordance with Article 64 of Law Number 21 of 2008 concerning Islamic Banking, for Islamic banks; or
c. in accordance with Article 54 of Law Number 21 of 2011 concerning the Financial Services Authority, for Financial Service Institutions.

(5) Management Key Parties or Official Key Parties who intentionally do not comply with provisions as referred to in Article 15 paragraph (1) are subject to sanctions:
a. in accordance with Article 49 paragraph (2) letter b of Law Number 7 of 1992 concerning Banking as amended by Law Number 10 of 1998, for Banks other than Islamic banks; b. in accordance with Article 63 paragraph (2) letter b of Law Number 21 of 2008 concerning Islamic Banking, for Islamic banks; or
c. in accordance with Article 54 of Law Number 21 of 2011 concerning the Financial Services Authority, for Financial Service Institutions.

CHAPTER VIII
TRANSITIONAL PROVISIONS

Article 21
Parties included in the list of parties prohibited from becoming Key Parties based on:
a. Bank Indonesia Regulation Number 12/23/PBI/2010 concerning Fit and Proper Test (State Gazette of the Republic of Indonesia Year 2010 Number 155, Supplement to the State Gazette of the Republic of Indonesia Number 5180); b. Bank Indonesia Regulation Number 14/6/PBI/2012 concerning Fit and Proper Test of Islamic Banks and Sharia Business Units (State Gazette of the Republic of Indonesia Year 2012 Number 136, Supplement to the State Gazette of the Republic of Indonesia Number 5322); and
c. Bank Indonesia Regulation Number 14/9/PBI/2012 concerning Fit and Proper Test of Rural Banks (State Gazette of the Republic of Indonesia Year 2012 Number 150, Supplement to the State Gazette of the Republic of Indonesia Number 5331),
remain prohibited from becoming shareholders, members of the Board of Directors, members of the Board of Commissioners, and/or Executive Officials in banking until the prohibition period expires.

Article 22
(1) Regarding fit and proper tests, reassessments, or reassessments of fit and proper for Key Parties being conducted at the time this Financial Services Authority Regulation takes effect, the procedures, results, and consequences of the results of fit and proper tests, reassessments, or reassessments of fit and proper continue to refer to the provisions of fit and proper tests, reassessments, or reassessments of fit and proper in each respective financial service sector.

(2) Key Parties who receive the Unfit status in fit and proper tests, reassessments, or reassessments of fit and proper before this Financial Services Authority Regulation takes effect may submit a request for reconsideration as referred to in Article 16.

(3) Implementation provisions from:
a. Bank Indonesia Regulation Number 12/23/PBI/2010 concerning Fit and Proper Test (State Gazette of the Republic of Indonesia Year 2010 Number 155, Supplement to the State Gazette of the Republic of Indonesia Number 5180); b. Bank Indonesia Regulation Number 14/6/PBI/2012 concerning Fit and Proper Test of Islamic Banks and Sharia Business Units (State Gazette of the Republic of Indonesia Year 2012 Number 136, Supplement to the State Gazette of the Republic of Indonesia Number 5322);
c. Bank Indonesia Regulation Number 14/9/PBI/2012 concerning Fit and Proper Test of Rural Banks (State Gazette of the Republic of Indonesia Year 2012 Number 150, Supplement to the State Gazette of the Republic of Indonesia Number 5331); and
d. Financial Services Authority Regulation Number 04/POJK.05/2013 concerning Assessment of Fit and Proper for Key Parties in Insurance Companies, Pension Funds, Financing Companies, and Guarantee Companies, (State Gazette of the Republic of Indonesia Year 2013 Number 231, Supplement to the State Gazette of the Republic of Indonesia Number 5474), remain in force insofar as they do not conflict with this Financial Services Authority Regulation.

CHAPTER IX
CLOSING PROVISIONS

Article 23
Further provisions regarding the implementation of reassessment for key parties of financial service institutions are regulated in a Circular Letter of the Financial Services Authority.

Article 24
At the time this Financial Services Authority Regulation takes effect:
a. Bank Indonesia Regulation Number 12/23/PBI/2010 concerning Fit and Proper Test (State Gazette of the Republic of Indonesia Year 2010 Number 155, Supplement to the State Gazette of the Republic of Indonesia Number 5180); b. Bank Indonesia Regulation Number 14/6/PBI/2012 concerning Fit and Proper Test of Islamic Banks and Sharia Business Units (State Gazette of the Republic of Indonesia Year 2012 Number 136, Supplement to the State Gazette of the Republic of Indonesia Number 5322);
c. Bank Indonesia Regulation Number 14/9/PBI/2012 concerning Fit and Proper Test of Rural Banks (State Gazette of the Republic of Indonesia Year 2012 Number 150, Supplement to the State Gazette of the Republic of Indonesia Number 5331); and
d. Financial Services Authority Regulation Number 04/POJK.05/2013 concerning Assessment of Fit and Proper for Key Parties in Insurance Companies, Pension Funds, Financing Companies, and Guarantee Companies, (State Gazette of the Republic of Indonesia Year 2013 Number 231, Supplement to the State Gazette of the Republic of Indonesia Number 5474), are repealed and declared invalid except for the process of fit and proper tests, reassessments, or reassessments of fit and proper for Key Parties being conducted as referred to in Article 22 paragraph (1).

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

Article 25
This Financial Services Authority Regulation takes effect 1 (one) month from the date of its promulgation.
To ensure that everyone knows it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on 27 December 2018
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Promulgated in Jakarta on 28 December 2018
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2018 NUMBER 259

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 34 /POJK.03/2018
CONCERNING
REASSESSMENT OF KEY PARTIES OF FINANCIAL SERVICE INSTITUTIONS

I. GENERAL
To realize a national economy capable of growing stably and sustainably and providing welfare for all Indonesian people, Financial Service Institutions (LJK) have a very important function in managing and utilizing public funds. The intermediary function performed by LJK has become increasingly significant in its development. The products and activities offered by LJK are increasingly diverse and interrelated in the financial service sector. The process of globalization in the financial system and rapid technological progress and financial innovation have created a complex, dynamic, and interrelated financial system.

Given the importance of the LJK function, LJK must be owned and managed by parties who have adequate integrity, financial feasibility, financial reputation, and/or competence. These requirements must be met when the individual enters and while remaining within the LJK. The failure of LJK business caused by parties who do not have adequate integrity, financial feasibility, financial reputation, and/or competence, especially in systemically important LJK, has a very large impact on the national economy.

To ensure that LJK is owned and managed by parties meeting the requirements, reassessment of parties who have become owners or managers of LJK is conducted in the event of indications of involvement and/or responsibility for integrity, financial feasibility, financial reputation, and/or competence issues occurring in the LJK. In line with the purpose of the reassessment, all procedures and stages need to be carried out accurately, clearly, and transparently so that the assessment results can be accounted for.

Furthermore, as a result of a series of reassessment processes, parties who have obtained the final determination of the reassessment results may submit a request for reconsideration if they meet certain criteria.

Based on the above, regulations governing the reassessment of key parties of financial service institutions need to be compiled in a regulation.

II. ARTICLE BY ARTICLE

Article 1
Clear enough.

Article 2
Letter a
Number 1)
Clear enough.
Number 2)
Clear enough.
Number 3)
Clear enough.
Number 4)
Included in the definition of Executive Officials include division heads, regional office heads, branch office heads, functional office heads with the lowest rank equivalent to branch office heads, heads of risk management work units, heads of compliance work units, and heads of internal audit work units, and/or other equivalent officials, including section heads and managers and officials designated to be responsible for the implementation of risk management, compliance, and internal audit functions of Rural Banks and Islamic Rural Financing Banks.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Clear enough.

Letter f
Clear enough.

Letter g
Clear enough.

Article 3
Clear enough.

Article 4
Letter a
Number 1)
LJK Employees are every person recorded in the LJK's personnel administration, honorary employees, and/or outsourced employees working at the relevant LJK.

Number 2)
Harming or reducing LJK profits means harming or reducing profits in the form of finances.

Number 3)
Good LJK management principles in the banking sector refer to Financial Services Authority regulations regarding the governance of commercial banks, rural banks, and Islamic banks.

Good LJK management principles in the capital market sector refer to regulations regarding the governance of securities companies.

Principles of good management of non-bank financial service institutions include reference to regulations on insurance corporate governance, financing company corporate governance, or regulations on Investment Management Company (PMV) corporate governance.

Item 4)
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Causing the FSI to experience difficulties that endanger the continuity of the FSI's business or may endanger the financial industry, including in the banking sector, namely:

1. utilizing the Bank to finance its own interests or business group; and/or
2. violating regulations and/or commitments to the Financial Services Authority (OJK) or the government,
   which causes the Bank to be placed under intensive or special supervision, taken over by the government or the Deposit Insurance Corporation, business activities are frozen, and/or business license is revoked.

Letter d
The meaning of doing and/or not doing certain actions includes actions in the context of improvement and/or rehabilitation of the FSI.

Letter e
Non-performing loans and/or financing, namely:

1. non-performing loans and/or financing recorded in the information system regarding debtor data; and/or
2. non-performing loans and/or financing not yet reported by the FSI in the information system regarding debtor data or already reported by the FSI in the information system regarding debtor data but not yet classified as non-performing, but based on research conducted by the Financial Services Authority, such loans and/or financing have met the criteria for classification as non-performing in accordance with regulations governing asset quality.

Letter f
Clearly sufficient.

Letter g
Clearly sufficient.

Letter h
Clearly sufficient.

Article 5

Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Clearly sufficient.

Letter d
Clearly sufficient.

Letter e
Clearly sufficient.

Letter f
Clearly sufficient.

Letter g
Assessment is based on the duties and responsibilities of each Key Party of Management, according to the duty descriptions present in the respective FSI.
The meaning of the ability to perform strategic management includes the ability to interpret the vision and mission of the FSI, anticipate economic and financial developments, and analyze the financial industry situation and the industrial sector being financed.

Letter h
Clearly sufficient.

Letter i
Clearly sufficient.

Article 6

Paragraph (1)
Clearly sufficient.

Paragraph (2)

Letter a
Clarification implementation with the party being reassessed can be conducted in person, accompanied by a minutes of meeting, and/or via letter.

Letter b
The preliminary results of the reassessment submitted to the party being reassessed contain the preliminary reassessment result predicate along with the basis for consideration.

Letter c
Submission of responses from the party being reassessed is conducted in writing, accompanied by relevant supporting evidence.

Letter d
The final results of the reassessment are submitted in writing, containing the final reassessment result predicate along with the basis for consideration.

Paragraph (3)
Clearly sufficient.

Paragraph (4)
Key Parties who do not exercise their rights include parties who are subject to reassessment but whose whereabouts are unknown.

Paragraph (5)
Clearly sufficient.

Paragraph (6)
Clearly sufficient.

Paragraph (7)
Clearly sufficient.

Paragraph (8)
Clearly sufficient.

Article 7
Clearly sufficient.

Article 8

Paragraph (1)
Clearly sufficient.

Paragraph (2)
The level of involvement and/or accountability of the Key Party being reassessed is based on the role of each Key Party being reassessed regarding the violation actions committed.

Article 9
Clearly sufficient.

Article 10

Paragraph (1)
Clearly sufficient.

Paragraph (2)

Letter a
Clearly sufficient.

Letter b
Financial service industry, namely:

1. banking industry;
2. capital market industry; and
3. non-bank financial industry.

Paragraph (3)
Clearly sufficient.

Article 11

Paragraph (1)

Letter a
Clearly sufficient.

Letter b

Item 1)

Letter a)
Clearly sufficient.

Letter b)

Sub-item i
The meaning of "repeatedly" includes, among others, committing actions after being subjected to consequences for actions as referred to in this Financial Services Authority regulation, whether due to the same action or different actions.

Sub-item ii
The meaning of "cumulatively" includes, among others, a combination of at least 2 (two) actions from the actions referred to in Article 4 letter a item 3), letter a item 4), letter d, letter e, letter g, and/or letter h.

Sub-item iii
Clearly sufficient.

Item 2)

Letter a)
Clearly sufficient.

Letter b)

Sub-item i
The meaning of "repeatedly" includes, among others, committing actions after being subjected to consequences for actions as referred to in this Financial Services Authority regulation, whether due to the same action or different actions.

Sub-item ii
The meaning of "cumulatively" includes, among others, a combination of at least 2 (two) actions from the actions referred to in Article 5 letter a item 3), letter a item 4), letter d, letter e, letter g, and/or letter h.

Sub-item iii
Clearly sufficient.

Letter c
Clearly sufficient.

Paragraph (2)
Clearly sufficient.

Article 12

Paragraph (1)

Letter a
Clearly sufficient.

Letter b
Rights as a shareholder are the right to attend and exercise voting rights in the Annual General Meeting of Shareholders (RUPS), but do not include the right to receive distributed dividends.

Letter c
Clearly sufficient.

Paragraph (2)

Letter a
Clearly sufficient.

Letter b
Rights as a shareholder are the voting rights of shareholders calculated in the RUPS and the voting rights of shareholders calculated as part of the RUPS quorum calculation, but do not include the right to receive distributed dividends. Key Parties prohibited from becoming Controlling Key Parties or holding shares only have voting rights calculated in the RUPS and voting rights calculated as part of the RUPS quorum calculation, at most 10% (ten percent) of each Sharia bank share. The right to receive distributed dividends remains in accordance with the number of shares owned by Key Parties prohibited from becoming Controlling Key Parties or Key Parties holding shares.

Letter c
Reduction of share ownership is carried out by transferring share ownership.

Paragraph (3)
Explanation in the shareholder list of the FSI, namely the explanation regarding the status of Key Parties established with a "Fail" predicate, so that:
a. for Key Parties of FSIs other than Sharia banks, the shares owned by the Key Party become without voting rights in the RUPS and are not counted in the quorum until the said shares are transferred to another party; or b. for Sharia bank Key Parties, the number of voting rights calculated in the RUPS and voting rights calculated as part of the RUPS quorum calculation is at most 10% (ten percent) of all Sharia bank shares until the shares are transferred to another party.

Paragraph (4)
Clearly sufficient.

Paragraph (5)

Letter a
Regulatory provisions include, among others, regulations governing the establishment of status and follow-up supervision of Banks.

Letter b
Clearly sufficient.

Paragraph (6)
Clearly sufficient.

Article 13
Clearly sufficient.

Article 14

Paragraph (1)
Family relationships up to the second degree, namely vertical and horizontal relationships, including parents-in-law, sons/daughters-in-law, and siblings-in-law, include:

1. biological/step/adopted parents;
2. biological/step/adopted siblings together with their husband or wife;
3. biological/step/adopted children;
4. biological/step/adopted grandparents;
5. biological/step/adopted grandchildren;
6. husband/wife;
7. parents-in-law;
8. siblings-in-law;
9. husband/wife of biological/step/adopted children; and/or
10. grandparents of husband/wife;
11. husband/wife of biological/step/adopted grandchildren; and/or
12. biological/step/adopted siblings of husband/wife together with their husband or wife.
    The meaning of business group is:
13. individuals and legal entities;
14. several individuals; or
15. several legal entities,
    which have interrelated management, ownership, and/or financial relationships.

Paragraph (2)

Letter a
Clearly sufficient.

Letter b
The prohibition on recording share ownership does not affect accounting records nor capital records of the FSI until the concerned party transfers the shares.

Letter c
Clearly sufficient.

Article 15

Paragraph (1)

Letter a
Committing actions as a Key Party of Management, namely acting on behalf of the FSI, including in making decisions that legally bind the FSI and/or making decisions that affect the financial condition of the FSI.

Letter b
Clearly sufficient.

Paragraph (2)
Follow-up actions to be carried out by the FSI include, among others, the convening of the RUPS and the dismissal of Key Party Officials.

Paragraph (3)
Clearly sufficient.

Paragraph (4)
Clearly sufficient.

Paragraph (5)
Clearly sufficient.

Paragraph (6)
Clearly sufficient.

Paragraph (7)
Clearly sufficient.

Article 16

Paragraph (1)
Clearly sufficient.

Paragraph (2)

Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Consequences of implementing the Law include, among others, the implementation of Law Number 11 of 2016 on Tax Amnesty.

Letter d

Item 1)
Having no negative records means not committing legal violations with a penalty threat of more than 1 (one) year, not causing bankruptcy, and/or not becoming a shareholder, director, board of commissioners member, or equivalent who is declared guilty causing a company to be declared bankrupt or have its business license revoked.

Item 2)
Clearly sufficient.

Paragraph (3)
Considerations for following up or not following up on a request for review are based on the fulfillment of the criteria as referred to in paragraph (2) and other considerations, such as impact on the condition of the FSI both individually and in the industry.

Paragraph (4)
Key Parties declared to have passed the review do not automatically return to being Key Parties. To return to being a Key Party, it is done in accordance with criteria, requirements, and mechanisms based on Financial Services Authority Regulations governing the assessment of competence and propriety for key parties of financial service institutions.

Article 17

Paragraph (1)
Parties that can be contacted are family or other parties from the Key Party who are willing or designated by the Key Party to become a contact person for correspondence with the Financial Services Authority.

Paragraph (2)
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Article 18

Paragraph (1)
Clearly sufficient.

Paragraph (2)
Regulatory provisions include, among others, regulations regarding the use of accountants and public accounting firms in financial service activities.

Article 19
Disclosure of explanations regarding the status of Controlling Key Parties is conducted, among others, in the Quarterly Public Financial Report and the Annual Report.

Article 20

Paragraph (1)
Replacement of Key Party Management is carried out by the FSI through a RUPS decision.

Paragraph (2)
Imposition of administrative sanctions in the form of written warnings or written reprimands and fines does not eliminate the obligation of FSIs other than Rural Credit Banks (BPR) and Sharia Rural Financing Banks (BPRS) to submit reports.

Paragraph (3)
Imposition of administrative sanctions in the form of written warnings or written reprimands and fines does not eliminate the obligation of Rural Credit Banks (BPR) and Sharia Rural Financing Banks (BPRS) to submit reports.

Paragraph (4)
Clearly sufficient.

Paragraph (5)
Clearly sufficient.

Article 21
Clearly sufficient.

Article 22

Paragraph (1)
Competence and propriety tests, reassessments, or reassessments of competence and propriety applicable in each financial service sector include, among others:
a. Bank Indonesia Regulation Number 12/23/PBI/2010 on Competence and Propriety Tests (Fit and Proper Test), for commercial banks; b. Bank Indonesia Regulation Number 14/6/PBI/2012 on Competence and Propriety Tests (Fit and Proper Test) for Sharia Banks and Sharia Business Units, for Sharia banks;
c. Bank Indonesia Regulation Number 14/9/PBI/2012 on Competence and Propriety Tests (Fit and Proper Test) for Rural Credit Banks, for Rural Credit Banks;
d. Financial Services Authority Regulation Number 4/POJK.05/2013 on Competence and Propriety Assessment for Key Parties in Insurance Companies, Pension Funds, Financing Companies, and Guarantee Companies; and e. Financial Services Authority Regulation Number 20/POJK.04/2016 on Licensing of Securities Companies Engaging in Business as Underwriters of Securities Issues and Securities Trading Intermediaries.

Paragraph (2)
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Article 23
Further provisions regarding the implementation of reassessment include, among others, the scope of reassessment, procedures for reassessment, and consequences of the final reassessment results.

Article 24
Clearly sufficient.

Article 25
Clearly sufficient.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6285