Financial Services Authority Regulation Number 34/POJK.04/2019 Regarding Mutual Funds in the Form of Limited Participation Collective Investment Contracts

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 34 /POJK.04/2019
REGARDING
MUTUAL FUNDS IN THE FORM OF LIMITED PARTICIPATION COLLECTIVE INVESTMENT CONTRACTS BY THE GRACE OF GOD THE ALMIGHTY, THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that flexibility in financing structure in the real sector and capital market infrastructure is needed through mutual funds in the form of limited participation collective investment contracts; b. that regulations regarding mutual funds in the form of limited participation collective investment contracts are no longer in line with legal developments and to support the development of financing for business activities and the real sector through mutual funds in the form of limited participation collective investment contracts;
c. that based on considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation regarding Mutual Funds in the Form of Limited Participation Collective Investment Contracts;

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

DECIDING:
Establishing: A FINANCIAL SERVICES AUTHORITY REGULATION REGARDING MUTUAL FUNDS IN THE FORM OF LIMITED PARTICIPATION COLLECTIVE INVESTMENT CONTRACTS.

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

1. Mutual Funds in the Form of Limited Participation Collective Investment Contracts, hereinafter referred to as Limited Participation Mutual Funds, are vehicles used to gather funds from professional investors which are subsequently invested by investment managers into portfolios of Securities based on real sector activities.
2. Mutual Fund is a vehicle used to gather funds from investor public which are subsequently invested in Security Portfolios by investment managers.
3. Collective Investment Contract is a contract between an investment manager and a custodian bank binding unit holders, where the investment manager is authorized to manage the collective investment portfolio and the custodian bank is authorized to carry out collective custody.
4. Securities are negotiable instruments, consisting of debt certificates, commercial paper, shares, bonds, debt evidence, units of participation in collective investment contracts, futures contracts over Securities, and any derivatives of Securities.
5. Security Portfolio is a collection of Securities owned by a party.
6. Real Sector Activities are activities, both directly and indirectly, related to the production of goods, provision of services in the real sector including but not limited to in the context of production of goods, and/or working capital from such activities.
7. Professional Investor is an investor who understands the investment structure of Limited Participation Mutual Funds, has the ability to purchase participation units, and conducts risk analysis against Limited Participation Mutual Funds.
8. Target Company is a company that issues Securities offered not through a public offering which will become the Security Portfolio of the Limited Participation Mutual Fund.
9. Fair Market Value of Securities is the value that can be obtained from transactions of Securities conducted between parties freely, not under coercion or liquidation.
10. Investment Manager is a party whose business activity manages Security Portfolios for clients or manages collective investment portfolios for a group of clients, except insurance companies, pension funds, and banks that conduct their own business activities based on legislation.
11. Custodian Bank is a general bank that has received approval from the Financial Services Authority as a Custodian Bank.
12. Mutual Fund Security Selling Agent is a party that sells Mutual Fund Securities based on a cooperation contract with the Investment Manager managing the Mutual Fund.
13. Party is an individual, company, joint venture, association, or organized group.
14. Security Price Valuation Agency is a Party that has obtained a business license from the Financial Services Authority to conduct security price valuation in order to determine fair market prices.
15. Participation Unit is a unit of measurement showing the portion of interest of each Party in the collective investment portfolio.
16. Collective Custody is a custody service for Securities jointly owned by more than one Party whose interests are represented by a custodian.
17. Public Offering is the activity of offering Securities conducted by an issuer to sell Securities to the public based on procedures regulated in the Law concerning Capital Markets and its implementing regulations.
18. Net Asset Value is the fair market value of a Security and other assets of the Limited Participation Mutual Fund minus all its liabilities.
19. Info Memo is any written information containing material information or facts related to the Securities of the Target Company created by the Target Company in the context of offering Securities of the Target Company not offered through a Public Offering, with the aim for other Parties to purchase said Securities.
20. Investment Management Team is a team tasked with managing the Security Portfolio of the Limited Participation Mutual Fund for the benefit of the unit holders of the Limited Participation Mutual Fund.
21. Investment Committee is a committee tasked with directing and supervising the Investment Management Team in implementing investment policies and strategies.
22. Disclosure Document is any written information containing material information or facts in the context of issuing the Limited Participation Mutual Fund with the aim for other Parties to purchase the Limited Participation Mutual Fund.

Article 2
The management guidelines for Limited Participation Mutual Funds must follow provisions of legislation in the capital market sector regulating Mutual Funds in the Form of Collective Investment Contracts, unless otherwise provided in this Financial Services Authority Regulation.

Article 3
Provisions relating to:
a. actions prohibited from being carried out by Investment Managers and/or Mutual Funds in the Form of Collective Investment Contracts; b. purchase and repurchase (redemption) of Participation Units of Mutual Funds in the Form of Collective Investment Contracts;
c. fulfillment of timeframes and minimum managed funds, as regulated in regulations regarding Mutual Funds in the Form of Collective Investment Contracts do not apply to Limited Participation Mutual Funds.

Article 4
Limited Participation Mutual Funds may have investor representatives as a communication link between unit holders and the Investment Manager regarding investment activities and the development of the Limited Participation Mutual Fund.

Article 5
(1) The Investment Manager managing the Limited Participation Mutual Fund must act in good faith and with full responsibility in performing tasks for the benefit of the unit holders of the Limited Participation Mutual Fund. (2) In the event the Investment Manager fails to fulfill its obligations as referred to in paragraph (1), the Investment Manager is responsible for all losses arising from its actions.

CHAPTER II
GUIDELINES FOR MANAGING LIMITED PARTICIPATION MUTUAL FUNDS
Article 6
(1) Offering Participation Units of Limited Participation Mutual Funds must only be conducted to and purchased by Professional Investors.
(2) Offering Participation Units of Limited Participation Mutual Funds may be conducted through a Public Offering or not through a Public Offering.
(3) The type of offering of Participation Units of Limited Participation Mutual Funds must be established in the Collective Investment Contract and the Disclosure Document of the Limited Participation Mutual Fund.
(4) Offering Participation Units of Limited Participation Mutual Funds may be conducted through Mutual Fund Security Selling Agents.
(5) Offering Participation Units of Limited Participation Mutual Funds through Mutual Fund Security Selling Agents as referred to in paragraph (4) must meet the following provisions:
a. the offering activities conducted by Mutual Fund Security Selling Agents are only conducted to Professional Investors; b. sales activities conducted by Mutual Fund Security Selling Agents to prospective Professional Investors may be conducted through direct meetings, letters, and/or electronic media; and
c. sales activities of Participation Units of Limited Participation Mutual Funds must be based on a cooperation contract between the Mutual Fund Security Selling Agent and the Investment Manager as the manager of the Limited Participation Mutual Fund.
(6) Public Offering of Participation Units of Limited Participation Mutual Funds must be limited, both in terms of offering period and the number of Participation Units offered.
(7) The offering period and number of Participation Units as referred to in paragraph (6) must be included in the Collective Investment Contract and the Disclosure Document of the Limited Participation Mutual Fund.
(8) In the event the Limited Participation Mutual Fund is not offered through a Public Offering, the transfer of Participation Units of the Limited Participation Mutual Fund is prohibited if the transfer meets the criteria of Public Offering provisions.

Article 7
The Investment Manager managing the Limited Participation Mutual Fund must meet the following provisions:
a. having at least 1 (one) employee with expertise in the field of investment proven by:

1. Chartered Financial Analyst (CFA) certificate; or
2. individual license as an Investment Manager representative and having experience in managing Security Portfolios of Mutual Funds in the Form of Collective Investment Contracts for at least 5 (five) years, who is directly involved in the management of said Limited Participation Mutual Fund;
   b. having an Investment Committee tasked with:
3. setting investment policies and strategies on Securities related to Real Sector Activities; and
4. supervising all investment activities of the Limited Participation Mutual Fund from initial investment until divestment or during the validity period of the Collective Investment Contract;
   c. conducting due diligence on the Target Company and Real Sector Activities to be financed;
   d. monitoring the development of investments of the Limited Participation Mutual Fund in the Target Company and Real Sector Activities regularly; e. ensuring the realization of the use of funds from the Limited Participation Mutual Fund in accordance with the fund usage plan as stated in the Info Memo of said Securities, except for debt-type Securities issued by the Government of the Republic of Indonesia; f. ensuring the Target Company submits reports on the realization of fund usage to the Investment Manager, except for debt-type Securities issued by the Government of the Republic of Indonesia; g. providing information to prospective unit holders of the Limited Participation Mutual Fund about the product structure overview and investment risks in the Disclosure Document; h. providing a summary of key information on the Limited Participation Mutual Fund to prospective unit holders;
   i. having adequate procedures related to limited offerings and sales of Limited Participation Mutual Funds to Professional Investors, whether conducted through the Investment Manager or Mutual Fund Security Selling Agents; and
   j. ensuring that unit holders of the Limited Participation Mutual Fund have understood and comprehended the product structure and investment risks of the Limited Participation Mutual Fund, evidenced by a written statement from the unit holders of the Limited Participation Mutual Fund at the time of purchasing Participation Units.

Article 8
Mutual Fund Security Selling Agents conducting offers of Participation Units of Limited Participation Mutual Funds must meet the following provisions:
a. providing information to prospective unit holders of the Limited Participation Mutual Fund about the product structure overview and investment risks in the Disclosure Document; b. providing a summary of key information on the Limited Participation Mutual Fund to prospective unit holders;
c. having adequate procedures related to limited offerings and sales of Limited Participation Mutual Funds to Professional Investors conducted through the Investment Manager or Mutual Fund Security Selling Agents; and
d. ensuring that unit holders of the Limited Participation Mutual Fund have understood and comprehended the product structure and investment risks of the Limited Participation Mutual Fund, evidenced by a written statement from the unit holders of the Limited Participation Mutual Fund at the time of purchasing Participation Units.

Article 9
(1) The Investment Manager managing the Limited Participation Mutual Fund must establish specific investment objectives, investment policies, and investment strategies in managing the Limited Participation Mutual Fund. (2) The Security Portfolio of the Limited Participation Mutual Fund consists of one or more Securities that are the underlying assets of the Limited Participation Mutual Fund, to finance one or several Real Sector Activities. (3) In the event the Security Portfolio of the Limited Participation Mutual Fund consists of more than 1 (one) Security, the Security Portfolio of the Limited Participation Mutual Fund must meet the following provisions:
a. Securities forming the Security Portfolio of the Limited Participation Mutual Fund may be similar and/or dissimilar Securities; b. the plan to add Securities to the Security Portfolio of the Limited Participation Mutual Fund must be established in the Collective Investment Contract and Disclosure Document; and
c. every addition of Securities to the Security Portfolio of the Limited Participation Mutual Fund must obtain approval from all unit holders through the mechanism of a general meeting of unit holders.
(4) In the event the addition of Securities to the Security Portfolio of the Limited Participation Mutual Fund is done after the Limited Participation Mutual Fund is issued, the Investment Manager must submit documents related to the addition of said Securities to the Financial Services Authority at most 10 (ten) working days before the investment of the Limited Participation Mutual Fund in said Securities is carried out. (5) Documents related to the addition of Securities as referred to in paragraph (4) are the same as documents submitted at the time of the application for recording of the Limited Participation Mutual Fund, adjusted in connection with the addition of new Securities.

Article 10
(1) The Minimum Investment for each unit holder of the Limited Participation Mutual Fund is 1,000,000 (one million) Participation Units with a value at initial investment of IDR 1,000,000,000.00 (one billion rupiah).
(2) In the event Participation Units of the Limited Participation Mutual Fund are issued using foreign currency denominations, the minimum investment as referred to in paragraph (1) is the equivalent value of IDR 1,000,000,000.00 (one billion rupiah) using the prevailing middle exchange rate of the Bank of Indonesia. (3) The minimum investment value of the Limited Participation Mutual Fund as referred to in paragraph (1) is prohibited from being owned and/or agreed to be owned jointly by more than 1 (one) Party.

Article 11
(1) Limited Participation Mutual Funds are prohibited from investing in Securities except:
a. debt-type and/or Sharia fixed-income Securities offered through Public Offerings and/or not through Public Offerings; b. equity-type Securities issued by companies that are not Open Companies, unless ownership of equity-type Securities issued by Open Companies is a consequence of the termination mechanism of the Limited Participation Mutual Fund in the form of a Public Offering strategy conducted by the Limited Participation Mutual Fund investing in equity-type Securities; and/or
c. hybrid-type Securities not offered through Public Offerings.
(2) Besides investment instruments as referred to in paragraph (1), Limited Participation Mutual Funds may conduct derivative transactions over currencies or interest rates for hedging investments.

Article 12
Limited Participation Mutual Funds may invest in Securities issued by Parties affiliated with the Investment Manager, with the following provisions:
a. the purchase transaction of Target Company Securities must be conducted in arm's length conditions where transactions between Parties are conducted independently and at fair prices; b. in the event the Target Company Securities to be purchased are equity-type Securities, due diligence on the Target Company and Real Sector Activities must be supported by independent valuation result reports made by appraisers registered with the Financial Services Authority; and
c. the Investment Manager must disclose information regarding investments of the Limited Participation Mutual Fund in Securities issued by Parties affiliated with the Investment Manager in the Disclosure Document of the Limited Participation Mutual Fund.

Article 13
To manage the Limited Participation Mutual Fund, the Investment Manager is prohibited from:
a. purchasing foreign Securities; b. issuing debt-type or equity-type Securities;
c. purchasing Securities from prospective or unit holders and/or Parties affiliated with prospective or unit holders, unless conducted at fair market prices; and/or
d. receiving loans directly including issuing bonds or other debt-type Securities.

Article 14
(1) In the event the Limited Participation Mutual Fund cannot yet invest in Securities as referred to in Article 11 and the Limited Participation Mutual Fund has already received funds from investors, the Limited Participation Mutual Fund may place funds in deposits for a maximum of 1 (one) year since the Limited Participation Mutual Fund was recorded. (2) Placement of funds in deposits as referred to in paragraph (1) is conducted with the provision that placement of funds in deposits at 1 (one) general bank is at most 10% (ten percent) of the total Net Asset Value of the Limited Participation Mutual Fund. (3) In the event placement of funds in deposits as referred to in paragraph (1) is conducted at a general bank affiliated with the Investment Manager, the Investment Manager must disclose information regarding placement of funds in deposits at general banks affiliated with the Investment Manager in the Disclosure Document of the Limited Participation Mutual Fund. (4) The plan for placement of funds in deposits as referred to in paragraph (1) must be submitted by the Investment Manager to the Financial Services Authority and unit holders of the Limited Participation Mutual Fund at most 5 (five) working days before the placement of funds, accompanied by reasons and their impact on the investment of unit holders of the Limited Participation Mutual Fund.

Article 15
Custodian Banks must calculate the Net Asset Value of the Limited Participation Mutual Fund once every 3 (three) months and submit it electronically to the Financial Services Authority through the electronic reporting system provided by the Financial Services Authority and available to unit holders of the Limited Participation Mutual Fund.

First Section
Management of Limited Participation Mutual Funds Investing in Debt-Type Securities
Article 16
To monitor investments in debt-type Securities, Limited Participation Mutual Funds may appoint trustees registered with the Financial Services Authority to represent the interests of the Limited Participation Mutual Fund as holders of debt-type Securities to supervise the implementation of debt-type Securities issuance agreements.

Article 17
(1) Debt-type Securities as referred to in Article 11 letter a must be rated by securities rating companies that have obtained business licenses from the Financial Services Authority with an investment grade rating.
(2) In the event debt-type Securities as referred to in paragraph (1) do not obtain an investment grade rating, debt-type Securities must be supported by tangible guarantees in the form of pledges, fiduciary transfers, land mortgages, hypothec rights, and/or other guarantee mechanisms in accordance with legislation provisions, valued at least 100% (one hundred percent) of the nominal value of said debt-type Securities at all times. (3) Provisions as referred to in paragraph (1) and paragraph (2) do not apply to debt-type Securities issued by the Government of the Republic of Indonesia. (4) Custodian Banks of Limited Participation Mutual Funds must register tangible guarantees in the form of pledges, fiduciary transfers, land mortgages, hypothec rights, and/or other guarantee mechanisms in accordance with legislation provisions as referred to in paragraph (2) in the name of the Custodian Bank for the benefit of the Limited Participation Mutual Fund. (5) In the event Custodian Banks of Limited Participation Mutual Funds cannot register tangible guarantees in the form of pledges, fiduciary transfers, land mortgages, hypothec rights, and/or other guarantee mechanisms in accordance with legislation provisions, Custodian Banks must submit reasons and legal consequences to unit holders of the Limited Participation Mutual Fund and the Financial Services Authority.

Second Section
Management of Limited Participation Mutual Funds Investing in Equity-Type Securities
Article 18
(1) Limited Participation Mutual Funds investing in equity-type Securities must have an Investment Committee.
(2) The Investment Committee as referred to in paragraph (1) must have at least 1 (one) member experienced in the field of corporate financial valuation for at least 5 (five) years.
(3) Members of the Investment Committee as referred to in paragraph (2) may come from employees of the Investment Manager and/or third parties bound by an agreement with the Investment Manager.
(4) Agreements between the Investment Manager and members of the Investment Committee coming from third parties as referred to in paragraph (3) must contain at least the following provisions:
a. agreement term at least equal to the investment term of the Limited Participation Mutual Fund; b. following Indonesian law provisions; and
c. termination of the agreement can only be done after obtaining approval from the Investment Manager for the benefit of the Limited Participation Mutual Fund.
(5) In the event termination of the agreement of members of the Investment Committee coming from third parties occurs before the end of the agreement term, the Investment Manager must appoint replacement members of the Investment Committee at most 10 (ten) working days since the occurrence of the agreement termination.

Article 19
(1) In the event that the Investment Manager managing a Limited Participation Collective Investment Contract Mutual Fund investing in equity-type securities does not have knowledge of the business field of the Target Company, the Investment Manager is required to appoint an expert possessing the ability and expertise corresponding to the business field of the Target Company. (2) The Investment Manager managing a Limited Participation Collective Investment Contract Mutual Fund investing in equity-type securities may appoint a representative of the Limited Participation Collective Investment Contract Mutual Fund as a member of the board of directors and/or commissioners of the Target Company. (3) The expert referred to in paragraph (1) and/or the representative of the Limited Participation Collective Investment Contract Mutual Fund as a member of the board of directors and/or commissioners of the Target Company referred to in paragraph (2) may be employees of the Investment Manager or third parties. (4) In the event the Investment Manager appoints a third party as an expert as referred to in paragraph (1) and/or as a member of the board of directors and/or commissioners of the Target Company as referred to in paragraph (2), the Investment Manager is required to bind the third party with an agreement. (5) The agreement with the third party as referred to in paragraph (4) must contain at least:
a. an agreement period at least equal to the investment period of the Limited Participation Collective Investment Contract Mutual Fund; b. compliance with Indonesian law; and
c. termination of the agreement may only be carried out after obtaining the approval of the Investment Manager.
(6) In the event the agreement with the third party is terminated as referred to in paragraph (5) letter c before the agreement period expires, the Investment Manager is required to appoint a replacement no later than 10 (ten) working days from the occurrence of the termination of the said agreement.

Article 20
Limited Participation Collective Investment Contract Mutual Funds investing in equity-type securities must:
a. have access to information regarding the Target Company; and b. safeguard the interests of the Limited Participation Collective Investment Contract Mutual Fund in its investment in equity-type securities of the Target Company.

Article 21
(1) Limited Participation Collective Investment Contract Mutual Funds investing in equity-type securities must sell the said equity-type securities if the Target Company conducts a Public Offering within a specific time period and/or under specific conditions. (2) The time period and/or conditions for the sale of equity-type securities as referred to in paragraph (1) must be determined by the Investment Manager in the Collective Investment Contract and the Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund investing in equity-type securities.

Third Section
Management of Limited Participation Collective Investment Contract Mutual Funds Investing in Hybrid-Type Securities

Article 22
Investments by Limited Participation Collective Investment Contract Mutual Funds in hybrid-type securities are only in the form of:
a. perpetual securities; b. convertible debt securities;
c. subordinated debt securities; and/or
d. other types of securities having characteristics combining debt-type securities and equity-type securities.

Article 23
The Investment Manager managing a Limited Participation Collective Investment Contract Mutual Fund investing in hybrid-type securities must:
a. conduct due diligence on the features and structure of the issuance of hybrid-type securities; and b. ensure that investments in hybrid-type securities have been rated by a securities rating company holding a business license from the Financial Services Authority with an investment grade rating.

Article 24
Limited Participation Collective Investment Contract Mutual Funds investing in hybrid-type securities must provide additional information in the Collective Investment Contract and the Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund regarding:
a. characteristics of investments in hybrid-type securities; b. investment management strategies for hybrid-type securities; and
c. specific risks related to investments in hybrid-type securities.

CHAPTER III
GUIDELINES FOR THE COLLECTIVE INVESTMENT CONTRACT AND DISCLOSURE DOCUMENT OF LIMITED PARTICIPATION COLLECTIVE INVESTMENT CONTRACT MUTUAL FUNDS

First Section
Guidelines for the Collective Investment Contract

Article 25
The Collective Investment Contract of a Limited Participation Collective Investment Contract Mutual Fund must follow regulations in the capital market sector regarding Mutual Funds in the form of Collective Investment Contracts, unless otherwise regulated in this Financial Services Authority Regulation.

Article 26
(1) The Investment Manager managing a Limited Participation Collective Investment Contract Mutual Fund must include in the Collective Investment Contract at least:
a. the name and address of the Investment Manager; b. the name and address of the Custodian Bank;
c. investment objectives, policies, and strategies;
d. cost allocation borne by the Investment Manager, Custodian Bank, Limited Participation Collective Investment Contract Mutual Fund, and investors; e. composition of the Securities Portfolio and investment limitations of the Limited Participation Collective Investment Contract Mutual Fund, as well as prohibited actions for the Investment Manager; f. obligations and responsibilities of the Investment Manager; g. obligations and responsibilities of the Custodian Bank; h. replacement of the Investment Manager or Custodian Bank;
i. rights of Unit Holders;
j. rights of the Investment Manager and Custodian Bank to request the convening of a General Meeting of Unit Holders; k. regulations regarding access to information about the Target Company, for Limited Participation Collective Investment Contract Mutual Funds investing in equity-type securities;
l. procedures for processing the purchase of Units;
m. procedures for the transfer of Units; n. procedures for the method of calculating the Fair Market Value of Securities as the basis for determining the Net Asset Value of the Limited Participation Collective Investment Contract Mutual Fund; o. submission of annual financial reports of the Limited Participation Collective Investment Contract Mutual Fund; p. force majeure beyond the ability of the Investment Manager and/or Custodian Bank or emergency conditions causing the Investment Manager and/or Custodian Bank to be unable to perform their duties and obligations;

q. dissolution and liquidation of the Limited Participation Collective Investment Contract Mutual Fund; r. treatment of funds from liquidation not yet withdrawn by Unit Holders and/or remaining funds; s. the party responsible for the costs of dissolution and liquidation of the Limited Participation Collective Investment Contract Mutual Fund; t. appointment of a judicial institution, an alternative dispute resolution institution in the capital market sector, or another alternative dispute resolution institution as the institution to resolve civil disputes and litigation between the Investment Manager, Custodian Bank, and/or Unit Holders of the Limited Participation Collective Investment Contract Mutual Fund; u. the Target Company, Real Sector Activities, and/or information related to the issuer of securities that are the investment targets of the Limited Participation Collective Investment Contract Mutual Fund;
v. the term of the Collective Investment Contract;
w. the minimum and maximum number of Units to be issued;
x. the mechanism for terminating investments;
y. the mechanism for settlement and/or return of funds raised from Unit Holders of the Limited Participation Collective Investment Contract Mutual Fund, if after the period established in the Collective Investment Contract has passed, the Investment Manager managing the Limited Participation Collective Investment Contract Mutual Fund is unable to invest in the Target Company's securities for the Limited Participation Collective Investment Contract Mutual Fund; and z. the mechanism for the General Meeting of Unit Holders. (2) The rights of Unit Holders as referred to in paragraph (1) letter i must include at least:
a. the rights of Unit Holders as referred to in the Financial Services Authority Regulation regarding Mutual Funds in the form of Collective Investment Contracts; b. the right to obtain information regarding the development of activities of the Limited Participation Collective Investment Contract Mutual Fund and the Net Asset Value of the Limited Participation Collective Investment Contract Mutual Fund every 3 (three) months; and
c. the right to request the convening of a General Meeting of Unit Holders, in the event that Unit Holders represent 1/10 (one tenth) or more of the total number of Units of the Limited Participation Collective Investment Contract Mutual Fund issued.

Second Section
Disclosure Document

Article 27
The Disclosure Document of a Limited Participation Collective Investment Contract Mutual Fund offered must contain up-to-date information.

Article 28
(1) Regulations regarding the format and content of the prospectus for Public Offerings of Mutual Funds in accordance with regulations in the capital market sector governing guidelines for the format and content of prospectuses in the context of Public Offerings of Mutual Funds apply to Limited Participation Collective Investment Contract Mutual Funds offered through Public Offerings, unless otherwise regulated in this Financial Services Authority Regulation. (2) The Disclosure Document of a Limited Participation Collective Investment Contract Mutual Fund must:
a. cover all important and relevant information or facts regarding events, occurrences, and material facts that can influence the decision of investors, prospective investors, or other interested parties regarding such information or facts, which are known or should be known by the Investment Manager and/or Custodian Bank; b. contain information that is complete, sufficient, objective, clear, and easy to understand; and
c. disclose a summary of the most important facts and considerations at the beginning of the Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund, with the order of disclosure of facts in the Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund determined by the relevance of the facts to specific issues.
(3) Disclosure of material facts in the Disclosure Document of a Limited Participation Collective Investment Contract Mutual Fund may be adjusted and is not limited only to material facts.
(4) Disclosure of material facts as referred to in paragraph (3) is done clearly with emphasis appropriate to the condition of the Limited Participation Collective Investment Contract Mutual Fund, so that the Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund is not misleading. (5) The Disclosure Document of a Limited Participation Collective Investment Contract Mutual Fund is prohibited from:
a. containing incorrect information about material facts, the use of photos, diagrams, and/or tables; and/or b. omitting material facts that are required, so that the information contained in the said Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund does not provide a misleading picture. (6) The Limited Participation Collective Investment Contract Mutual Fund, Investment Manager, Custodian Bank, and capital market supporting professions, either individually or jointly, are responsible for ensuring that all information in the Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund:
a. does not contain incorrect information or material facts; b. does not omit information or material facts; and/or
c. is delivered in accordance with the provisions as referred to in paragraphs (1) through (5).

Article 29
The Disclosure Document of a Limited Participation Collective Investment Contract Mutual Fund must contain at least the following information:
a. information that must be presented (disclosed) on the outer front cover of the Disclosure Document, which includes:

1. the name of the Limited Participation Collective Investment Contract Mutual Fund;

2. the legal basis of the Limited Participation Collective Investment Contract Mutual Fund;

3. the address, logo, telephone number, and facsimile of the Investment Manager and Custodian Bank;

4. the effective date, for Limited Participation Collective Investment Contract Mutual Funds offered through Public Offerings, or the listing date for Limited Participation Collective Investment Contract Mutual Funds offered not through Public Offerings;

5. the offering period limit of the Limited Participation Collective Investment Contract Mutual Fund;

6. the minimum and/or maximum number of Units offered, if there is a limit on the number of Units;

7. the final allocation date, if there is a final allocation date;

8. the refund date for subscription money, if there is a refund date for subscription money;

9. a brief explanation of the objectives, policies, and investment strategies of the Limited Participation Collective Investment Contract Mutual Fund;

10. the offering price is equal to the Net Asset Value per Unit;

11. the full name of the securities underwriter, if there is a securities underwriter;

12. the full name of the Investment Manager;

13. the full name of the Custodian Bank;

14. the place and date the Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund is issued;

15. a column of attention stating: "BEFORE YOU DECIDE TO PURCHASE THESE UNITS, YOU MUST FIRST STUDY THE PAGE" (which refers to the inside page of the Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund regarding investment policy, risk factors, and the Investment Manager); and

16. the following statement printed in capital letters: "THE FINANCIAL SERVICES AUTHORITY DOES NOT GIVE A STATEMENT OF APPROVAL OR DISAPPROVAL OF THIS SECURITY, NOR DOES IT STATE THE TRUTH OR SUFFICIENCY OF THE CONTENT OF THIS DISCLOSURE DOCUMENT. ANY STATEMENT CONTRARY TO THIS IS A VIOLATION OF LAW";
    b. information that must be presented (disclosed) on the inner front cover of the Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund:
    "LIMITED PARTICIPATION COLLECTIVE INVESTMENT CONTRACT MUTUAL FUNDS ARE NOT INCLUDED IN INVESTMENT INSTRUMENTS GUARANTEED BY THE GOVERNMENT, BANK INDONESIA, OR OTHER INSTITUTIONAL PARTIES. BEFORE PURCHASING UNITS, INVESTORS MUST FIRST STUDY AND UNDERSTAND THE DISCLOSURE DOCUMENT AND OTHER OFFERING DOCUMENTS. THE CONTENT OF THE DISCLOSURE DOCUMENT AND OTHER OFFERING DOCUMENTS IS NOT A BUSINESS, LEGAL, OR TAX ADVICE";
    c. table of contents;
    d. terms and definitions, which must contain at least the following:

17. definition of Limited Participation Collective Investment Contract Mutual Fund;

18. legal form of the Limited Participation Collective Investment Contract Mutual Fund;

19. definition of Investment Manager;

20. definition of Custodian Bank;

21. definition of appraiser;

22. definition of Professional Investor;

23. definition of Target Company, if there is a Target Company;

24. definition of Real Sector Activities;

25. definition of proof of ownership of the Limited Participation Collective Investment Contract Mutual Fund or Units;

26. definition of Net Asset Value; and

27. other matters considered material to be explained;
    e. information regarding the Limited Participation Collective Investment Contract Mutual Fund, which includes:

28. establishment of the Limited Participation Collective Investment Contract Mutual Fund;

29. offering of Units;

30. explanation of returns obtained from investments in the Limited Participation Collective Investment Contract Mutual Fund; and

31. management of the Limited Participation Collective Investment Contract Mutual Fund, which must at least cover:
    a) Investment Committee; b) Investment Management Team; c) information regarding the Investment Manager, which includes:

1. brief description of the Investment Manager;
2. experience of the Investment Manager; and
3. Parties affiliated with the Investment Manager;
   d) information regarding the Custodian Bank; e) information regarding the appraiser; f) information about other capital market supporting professions related to the formation of the Limited Participation Collective Investment Contract Mutual Fund and the issuance of Units of the Limited Participation Collective Investment Contract Mutual Fund; g) investment objectives and policies; h) summary of due diligence results on investment assets in the Limited Participation Collective Investment Contract Mutual Fund; i) asset valuation methods for investment assets in the Limited Participation Collective Investment Contract Mutual Fund;

j) cost allocation borne by the Investment Manager, Limited Participation Collective Investment Contract Mutual Fund, Unit Holders, and/or other costs, if there is cost allocation borne by the Investment Manager, Limited Participation Collective Investment Contract Mutual Fund, Unit Holders, and/or other costs; k) taxation; l) main risk factors; m) rights of Unit Holders; n) legal opinion from a legal consultant registered with the Financial Services Authority; o) opinion from the appraiser regarding assets in the portfolio of the Limited Participation Collective Investment Contract Mutual Fund, if there is an opinion from the appraiser regarding assets in the portfolio of the Limited Participation Collective Investment Contract Mutual Fund; p) requirements and procedures for ordering or purchasing Units; q) information regarding the dissemination of the Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund and the ordering or purchasing form for Units; r) type of business activities of assets in the portfolio of the Limited Participation Collective Investment Contract Mutual Fund; s) structure of the Limited Participation Collective Investment Contract Mutual Fund; t) agreements related to the Limited Participation Collective Investment Contract Mutual Fund; u) regulations related to the Limited Participation Collective Investment Contract Mutual Fund; v) estimated and projected profits from the Limited Participation Collective Investment Contract Mutual Fund; w) General Meeting of Unit Holders; x) other material matters to be known by investors, if there are other material matters to be known by investors; and

y) dissolution and liquidation of the Limited Participation Collective Investment Contract Mutual Fund.

Article 30
(1) The Investment Manager managing a Limited Participation Collective Investment Contract Mutual Fund whose Units are offered through a Public Offering must issue an update to the Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund in the event of a change in material facts. (2) The update of the Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund as referred to in paragraph (1) may be in the form of an insertion of changes to the Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund by stating, "THIS INSERTION IS AN UPDATE AND AN INTEGRAL PART OF THE DISCLOSURE DOCUMENT."

CHAPTER IV
REGISTRATION STATEMENT FOR PUBLIC OFFERING AND APPLICATION FOR LISTING OF LIMITED PARTICIPATION COLLECTIVE INVESTMENT CONTRACT MUTUAL FUNDS

Article 31
(1) In the event that Units of a Limited Participation Collective Investment Contract Mutual Fund are determined to be offered through a Public Offering, the Investment Manager managing the Limited Participation Collective Investment Contract Mutual Fund must submit a registration statement for the Public Offering to the Financial Services Authority. (2) Regulations regarding the registration statement for Public Offerings in accordance with regulations in the capital market sector governing Mutual Funds in the form of Collective Investment Contracts apply to Limited Participation Collective Investment Contract Mutual Funds, unless otherwise regulated in this Financial Services Authority Regulation.

Article 32
In the event that Units of a Limited Participation Collective Investment Contract Mutual Fund are determined not to be offered through a Public Offering, the Investment Manager managing the Limited Participation Collective Investment Contract Mutual Fund must submit an application for listing of the issuance of the Limited Participation Collective Investment Contract Mutual Fund to the Financial Services Authority no later than 10 (ten) working days from the date of signing the Collective Investment Contract.

Article 33
In the context of the registration statement for Public Offerings and listing of Limited Participation Collective Investment Contract Mutual Funds, the Investment Manager must create, store, and administer the following documents:
a. the Collective Investment Contract made with a notarial deed by a notary registered with the Financial Services Authority; and b. supporting documents for investments in the Limited Participation Collective Investment Contract Mutual Fund.

Article 34
The supporting documents as referred to in Article 33 letter b consist of supporting documents for the application for listing of Limited Participation Collective Investment Contract Mutual Funds investing in:
a. debt-type securities; b. equity-type securities; and/or
c. hybrid-type securities.

Article 35
Supporting documents for the application for listing of Limited Participation Collective Investment Contract Mutual Funds investing in debt-type securities consist of:
a. agreements related to the Limited Participation Collective Investment Contract Mutual Fund; b. guarantee documents completed with tangible guarantees in the form of pledge, fiduciary transfer, lien, mortgage, and/or other guarantee mechanisms in accordance with regulations in the capital market sector in the name of the Limited Participation Collective Investment Contract Mutual Fund, if guarantees are required;
c. legal examination reports and legal opinions made by legal consultants registered with the Financial Services Authority regarding the issuance of:

1. debt-type securities that are the underlying assets of the Limited Participation Collective Investment Contract Mutual Fund; and

2. the Limited Participation Collective Investment Contract Mutual Fund;
   d. due diligence results on the Target Company and Real Sector Activities signed by the directors of the Investment Manager, except for Limited Participation Collective Investment Contract Mutual Funds investing in debt-type securities issued by the Government of the Republic of Indonesia; e. summary financial statements of the Target Company issuing the debt-type securities for the last 3 (three) years or since establishment, except for Limited Participation Collective Investment Contract Mutual Funds investing in debt-type securities issued by the Government of the Republic of Indonesia; f. valuation result reports made by appraisers registered with the Financial Services Authority regarding Real Sector Activities to be financed, if there are valuation result reports made by appraisers registered with the Financial Services Authority regarding Real Sector Activities to be financed; g. Company Info Memo, except for Limited Participation Collective Investment Contract Mutual Funds investing in debt-type securities issued by the Government of the Republic of Indonesia; h. Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund;
   i. documents related to the issuance of debt-type securities;
   j. curriculum vitae of Investment Manager employees directly involved in the management of the Limited Participation Collective Investment Contract Mutual Fund accompanied by:

3. photocopy of Chartered Financial Analyst (CFA) certificate; or

4. photocopy of individual license as a representative of the Investment Manager and a letter of experience in managing Securities Portfolios of Mutual Funds for at least 5 (five) years from the company where the respective person works;
   k. a statement letter signed by prospective Unit Holders or Unit Holders stating at least that the prospective Unit Holder or Unit Holder of the Limited Participation Collective Investment Contract Mutual Fund has understood and comprehended the investment structure of the Limited Participation Collective Investment Contract Mutual Fund investing in debt-type securities and the risks that may occur; and
   l. a statement letter signed by the authorized party according to the articles of association/by-laws stating that investment in the Limited Participation Collective Investment Contract Mutual Fund is carried out by the authorized party on behalf of the corporation, in the event that the prospective Unit Holder of the Limited Participation Collective Investment Contract Mutual Fund is a corporation.

Article 36
Supporting documents for the application for listing of Limited Participation Collective Investment Contract Mutual Funds investing in equity-type securities consist of:
a. agreements related to the Limited Participation Collective Investment Contract Mutual Fund; b. agreements with members of the Investment Committee from third parties, if there are agreements with members of the Investment Committee from third parties;
c. agreements with third parties representing the Limited Participation Collective Investment Contract Mutual Fund as experts and/or members of the board of directors and/or commissioners of the Target Company, if there are agreements with third parties representing the Limited Participation Collective Investment Contract Mutual Fund as experts and/or members of the board of directors and/or commissioners of the Target Company;
d. legal examination reports and legal opinions made by legal consultants registered with the Financial Services Authority regarding the issuance of:

1. equity-type securities that are the underlying assets of the Limited Participation Collective Investment Contract Mutual Fund; and
2. the Limited Participation Collective Investment Contract Mutual Fund;
   e. valuation result reports made by appraisers registered with the Financial Services Authority regarding equity-type securities or Real Sector Activities to be financed, if there are valuation result reports made by appraisers registered with the Financial Services Authority regarding equity-type securities or Real Sector Activities to be financed; f. due diligence results on the Target Company and Real Sector Activities signed by the directors of the Investment Manager; g. summary financial statements of the Target Company issuing the equity-type securities for the last 3 (three) years or since establishment; h. Company Info Memo;
   i. Disclosure Document of the Limited Participation Collective Investment Contract Mutual Fund;
   j. documents related to the issuance of securities; k. curriculum vitae of Investment Manager employees directly involved in the management of the Limited Participation Collective Investment Contract Mutual Fund accompanied by:
3. photocopy of Chartered Financial Analyst (CFA) certificate; or
4. photocopy of individual license as a representative of the Investment Manager and a letter of experience in managing Securities Portfolios of Mutual Funds for at least 5 (five) years from the company where the respective person works;
   l. a Statement Letter signed by prospective Unit Holders or Unit Holders stating at least that the prospective

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holders of Participation Units or holders of Participation Units of the Limited Participation Mutual Fund have understood and comprehended the investment structure of the Limited Participation Mutual Fund and the risks that may occur; and

m. a statement letter signed by the authorized party in accordance with the articles of association stating that the investment in the Limited Participation Mutual Fund is carried out by the authorized party on behalf of the corporation, in the event that the prospective holder of Participation Units of the Limited Participation Mutual Fund is in the form of a corporation.

Article 37
Supporting documents for the application for recording of a Limited Participation Mutual Fund that invests in hybrid-type securities consist of:

a. agreements related to the Limited Participation Mutual Fund; b. examination reports from a legal perspective and legal opinions made by legal consultants registered with the Financial Services Authority related to the issuance of:

1. hybrid-type securities that are the underlying assets of the Limited Participation Mutual Fund; and
2. the Limited Participation Mutual Fund;
   c. valuation result reports made by appraisers registered with the Financial Services Authority related to Real Sector Activities to be financed, if there are valuation result reports made by appraisers registered with the Financial Services Authority related to Real Sector Activities to be financed;
   d. due diligence results on the Target Company and Real Sector Activities signed by the Board of Directors of the Investment Manager; e. a summary of the financial statements of the Target Company issuing the hybrid-type securities for the last 3 (three) years or since its establishment;

f. Target Company Info Memo; g. Disclosure Documents of the Limited Participation Mutual Fund; h. documents related to the issuance of securities;
i. a list of resumes of Investment Manager employees directly involved in the management of the Limited Participation Mutual Fund accompanied by:

1. photocopies of Chartered Financial Analyst (CFA) certificates; or
2. photocopies of individual licenses as representatives of the Investment Manager and letters of experience in managing Mutual Fund Securities Portfolios for at least 5 (five) years from the company where they work;
   j. a Statement Letter signed by prospective holders of Participation Units or holders of Participation Units stating at least that prospective holders of Participation Units or holders of Participation Units of the Limited Participation Mutual Fund have understood and comprehended the investment structure of the Limited Participation Mutual Fund investing in hybrid-type securities and the risks that may occur; and k. a statement letter signed by the authorized party in accordance with the articles of association stating that the investment in the Limited Participation Mutual Fund is carried out by the authorized party on behalf of the corporation, in the event that the prospective holder of Participation Units of the Limited Participation Mutual Fund is in the form of a corporation.

Article 38
The registration statement for Public Offering and the application for recording of the Limited Participation Mutual Fund are submitted by the Investment Manager to the Financial Services Authority through an electronic system accompanied by documents and/or information as follows:

a. Collective Investment Contract made by a notary registered with the Financial Services Authority;

b. Disclosure Documents of the Limited Participation Mutual Fund stamped and signed by all parties;
c. Due diligence results on Securities, Target Companies, and Real Sector Activities signed by the Board of Directors of the Investment Manager for the Limited Participation Mutual Fund; and
d. Target Company Info Memo or prospectus of debt-type securities of Public Offering.

Article 39
(1) In processing the registration statement for Public Offering and the application for recording of the Limited Participation Mutual Fund, the Financial Services Authority reviews the completeness of the application documents. (2) To support the review of the Collective Investment Contract of the Limited Participation Mutual Fund, the Financial Services Authority is authorized to:

a. request the Investment Manager managing the Limited Participation Mutual Fund to present; and/or b. conduct on-site examinations of Real Sector Activities, Target Companies, and/or other parties included in the investment structure of the Limited Participation Mutual Fund.

CHAPTER V
FAIR MARKET VALUE OF SECURITIES IN THE PORTFOLIO OF LIMITED PARTICIPATION MUTUAL FUNDS

Article 40
The Investment Manager managing the Limited Participation Mutual Fund is required to calculate the Fair Market Value of Securities in the portfolio of the Limited Participation Mutual Fund and submit it to the Custodian Bank every 3 (three) months at the latest on the 10th (tenth) day after the end of the months of March, June, September, and December.

Article 41
(1) The calculation of the Fair Market Value of Securities as referred to in Article 40 is not subject to the provisions of capital market sector legislation regulating the Fair Market Value of Securities in the portfolio of Mutual Funds, except for Limited Participation Mutual Funds that invest in:

a. debt-type securities of Public Offering; and/or b. securities that are listed and/or traded on the exchange due to the investment termination mechanism of the Limited Participation Mutual Fund.
(2) In the event that the calculation of the Net Asset Value of the Limited Participation Mutual Fund is not subject to the provisions of capital market sector legislation regulating the Fair Market Value of Securities in the portfolio of Mutual Funds, the Investment Manager managing the Limited Participation Mutual Fund is required to establish a consistent method for calculating the Fair Market Value of Securities in the portfolio of the Limited Participation Mutual Fund as the basis for calculating the Net Asset Value.

CHAPTER VI
GENERAL MEETING OF UNIT HOLDERS OF LIMITED PARTICIPATION MUTUAL FUNDS

Article 42
(1) The General Meeting of Unit Holders is convened by the Investment Manager managing the Limited Participation Mutual Fund.
(2) The General Meeting of Unit Holders may be convened upon:

a. the initiative of the Investment Manager; b. the request of the Custodian Bank; or
c. the request of 1 (one) or more holders of Participation Units of the Limited Participation Mutual Fund who together represent 1/10 (one-tenth) or more of the total number of Participation Units of the Limited Participation Mutual Fund.

Article 43
(1) The Investment Manager managing the Limited Participation Mutual Fund may convene a General Meeting of Unit Holders in the event of, but is not limited to:

a. violations of agreements related to the Limited Participation Mutual Fund, including violations of the Collective Investment Contract allegedly committed by the Custodian Bank; b. requests for approval of changes to the Collective Investment Contract;
c. addition, reduction, and/or replacement of Investment Committee members;
d. requests for approval of the plan for the Limited Participation Mutual Fund to add to its Portfolio of Securities of the Limited Participation Mutual Fund; and/or e. requests for approval of the plan for the Limited Participation Mutual Fund to divest; and/or f. dissolution and liquidation of the Limited Participation Mutual Fund. (2) The Custodian Bank may request the convening of a General Meeting of Unit Holders to the Investment Manager via registered letter accompanied by reasons, with copies to holders of Participation Units of the Limited Participation Mutual Fund and the Financial Services Authority, in the event of, but is not limited to:

a. violations of agreements related to the Limited Participation Mutual Fund, including violations of the Collective Investment Contract allegedly committed by the Investment Manager; and/or b. requests for approval of changes to the Collective Investment Contract. (3) Holders of Participation Units of the Limited Participation Mutual Fund may request the convening of a General Meeting of Unit Holders to the Investment Manager via registered letter accompanied by reasons, with copies to the Custodian Bank and the Financial Services Authority, in the event of, but is not limited to:

a. violations of agreements related to the Limited Participation Mutual Fund, including violations of the Collective Investment Contract allegedly committed by the Investment Manager and/or Custodian Bank; b. proposals for the replacement of the Investment Manager;
c. proposals for the replacement of the Custodian Bank; and/or
d. proposals for the addition, reduction, and/or replacement of Investment Committee members.

Article 44
The Investment Manager is required to issue a summons for the General Meeting of Unit Holders within a maximum period of 15 (fifteen) days calculated from the date the request for convening the General Meeting of Unit Holders is received.

Article 45
(1) In the event that the Investment Manager does not issue a summons for the General Meeting of Unit Holders as referred to in Article 44, the request for convening the General Meeting of Unit Holders as referred to in Article 43 paragraph (3) is submitted again to the Custodian Bank. (2) The Custodian Bank is required to issue a summons for the General Meeting of Unit Holders as referred to in paragraph (1) within a maximum period of 15 (fifteen) days calculated from the date the request for convening the General Meeting of Unit Holders is received. (3) In the event that the Custodian Bank does not issue a summons for the General Meeting of Unit Holders within the period as referred to in paragraph (2), holders of Participation Units of the Limited Participation Mutual Fund requesting the convening of the General Meeting of Unit Holders may submit an application to the Financial Services Authority to establish permission for the applicant to independently summon the General Meeting of Unit Holders. (4) The Financial Services Authority, after summoning and hearing holders of Participation Units, the Investment Manager and/or Custodian Bank, establishes permission to convene the General Meeting of Unit Holders if the applicant has proven the existence of reasons necessitating the convening of the General Meeting of Unit Holders and has a legitimate interest in the convening of the General Meeting of Unit Holders. (5) The determination of the Financial Services Authority as referred to in paragraph (4) also contains provisions regarding:

a. the form of the General Meeting of Unit Holders, the agenda of the General Meeting of Unit Holders in accordance with the request of the holders of Participation Units of the Limited Participation Mutual Fund, the time limit for summoning the General Meeting of Unit Holders, the quorum of attendance, and/or provisions regarding requirements for decision-making at the General Meeting of Unit Holders, and the appointment of the meeting chair, in accordance with or without being bound by the provisions of the Law on Limited Liability Companies; and/or b. orders requiring the Investment Manager and/or Custodian Bank to attend the General Meeting of Unit Holders. (6) The Financial Services Authority is authorized to reject the application as referred to in paragraph (4) if the applicant cannot prove the existence of reasons necessitating the convening of the General Meeting of Unit Holders and does not have a legitimate interest in the convening of the General Meeting of Unit Holders. (7) The General Meeting of Unit Holders as referred to in paragraph (5) may only discuss the agenda of the meeting as established by the Financial Services Authority.

Article 46
In the event that the Investment Manager does not issue a summons for the General Meeting of Unit Holders upon the request of the Custodian Bank within the period as referred to in Article 44, the Custodian Bank may independently issue a summons for the General Meeting of Unit Holders.

Article 47
(1) The Investment Manager is required to submit the agenda of the General Meeting of Unit Holders clearly and in detail to the Financial Services Authority at the latest 7 (seven) days before the summons for the General Meeting of Unit Holders is delivered to the holders of Participation Units. (2) The summons for the General Meeting of Unit Holders to holders of Participation Units must be carried out at the latest 14 (fourteen) days before the implementation of the General Meeting of Unit Holders, accompanied by the submission of the agenda of the General Meeting of Unit Holders. (3) The provisions regarding the submission of the agenda and summons for the General Meeting of Unit Holders as referred to in paragraph (1) and paragraph (2) apply mutatis mutandis to the convening of the General Meeting of Unit Holders conducted by the Custodian Bank or holders of Participation Units.

Article 48
(1) The General Meeting of Unit Holders may be held if attended by holders of Participation Units representing more than 2/3 (two-thirds) of the total number of Participation Units of the Limited Participation Mutual Fund. (2) In the event that the General Meeting of Unit Holders of the Limited Participation Mutual Fund is convened in relation to the request for approval of the addition of the Portfolio of Securities of the Limited Participation Mutual Fund as referred to in Article 9 paragraph (3) letter c, the General Meeting of Unit Holders must be attended by holders of Participation Units of the Limited Participation Mutual Fund representing all Participation Units of the Limited Participation Mutual Fund. (3) In the event that the quorum as referred to in paragraph (1) and paragraph (2) is not met, the Investment Manager is required to issue a summons for the second General Meeting of Unit Holders to holders of Participation Units with the provisions as referred to in Article 44 and stating that the first General Meeting of Unit Holders has been held and did not meet the quorum. (4) The second General Meeting of Unit Holders is considered valid and entitled to make decisions if attended by more than 1/2 (one-half) of the total number of Participation Units in the second General Meeting of Unit Holders. (5) The quorum provisions for attendance at the second General Meeting of Unit Holders as referred to in paragraph (4) do not apply to General Meetings of Unit Holders convened in relation to the request for approval of the addition of the Portfolio of Securities of the Limited Participation Mutual Fund. (6) In the event that the quorum for the second General Meeting of Unit Holders as referred to in paragraph (4) is not met, the Investment Manager or Custodian Bank may petition the Financial Services Authority to establish a quorum for the third General Meeting of Unit Holders. (7) The summons for the third General Meeting of Unit Holders must state that the second General Meeting of Unit Holders has been held and did not meet the quorum, and that the third General Meeting of Unit Holders will be held with a quorum established by the Financial Services Authority. (8) The summons for the second and third General Meetings of Unit Holders must be carried out within a maximum period of 7 (seven) days before the second or third General Meeting of Unit Holders is held.

Article 49
(1) The replacement of the Investment Manager based on the results of the General Meeting of Unit Holders as referred to in Article 43 paragraph (3) letter c is implemented after obtaining approval from the Financial Services Authority. (2) The replacement of the Custodian Bank based on the results of the General Meeting of Unit Holders as referred to in Article 43 paragraph (3) letter c is implemented after obtaining approval from the Investment Manager and the Financial Services Authority.

Article 50
(1) Decisions of the General Meeting of Unit Holders are taken based on deliberation for consensus.
(2) In the event that a decision based on deliberation for consensus as referred to in paragraph (1) is not reached, the decision is valid if approved by more than 1/2 (one-half) of the total number of Participation Unit votes cast in the General Meeting of Unit Holders. (3) Holders of Participation Units present at the General Meeting of Unit Holders as referred to in paragraph (2), but who do not cast a vote, are considered to have cast a vote the same as the majority vote of Participation Units cast in the General Meeting of Unit Holders. (4) In the event that the General Meeting of Unit Holders of the Limited Participation Mutual Fund is convened in relation to the request for approval of the addition of the Portfolio of Securities of the Limited Participation Mutual Fund as referred to in Article 9 paragraph (3) letter c, the decision of the General Meeting of Unit Holders is valid if approved by all holders of Participation Units of the Limited Participation Mutual Fund.

Article 51
The Investment Manager, Custodian Bank, or holder of Participation Units of the Limited Participation Mutual Fund convening the General Meeting of Unit Holders is required to submit a report on the results of the General Meeting of Unit Holders to the Financial Services Authority with copies to each relevant party.

CHAPTER VII
REPORTING OF LIMITED PARTICIPATION MUTUAL FUNDS

Article 52
The Investment Manager together with the Custodian Bank is required to prepare the annual financial statements of the Limited Participation Mutual Fund based on generally accepted accounting principles.

Article 53
The annual financial statements of the Limited Participation Mutual Fund must be audited by an accountant registered with the Financial Services Authority.

Article 54
(1) The Investment Manager is required to submit the audited annual financial statements of the Limited Participation Mutual Fund as referred to in Article 53 to the Financial Services Authority.
(2) The audited annual financial statements of the Limited Participation Mutual Fund as referred to in Article 53 must be available to holders of Participation Units of the Limited Participation Mutual Fund.

Article 55
The Investment Manager managing the Limited Participation Mutual Fund or the Custodian Bank is required to submit reports on information or material facts related to the Limited Participation Mutual Fund to the Financial Services Authority and holders of Participation Units of the Limited Participation Mutual Fund at the latest 2 (two) working days since the occurrence of such information or material facts.

Article 56
The Investment Manager managing the Limited Participation Mutual Fund is required to submit to the Financial Services Authority as follows:

a. investment reports every time the Limited Participation Fund invests in a Security; b. divestment reports every time the Limited Participation Mutual Fund divests from a Security;
c. periodic reports on the implementation of Real Sector Activities in the Limited Participation Mutual Fund investing in equity-type securities every 6 (six) months, prepared by the Investment Manager or made by experts in the event that the Investment Manager uses experts; and
d. reports on the position of debt-type securities in the Portfolio of Securities of the Limited Participation Mutual Fund that will mature at the latest 5 (five) working days before the maturity date of the debt-type securities.

Article 57
(1) Reports on the realization of fund usage as referred to in Article 7 letter e must be submitted by the Investment Manager managing the Limited Participation Mutual Fund to the Financial Services Authority and holders of Participation Units of the Limited Participation Mutual Fund every 3 (three) months at the latest on the 12th (twelfth) day after the end of the months of March, June, September, and December. (2) The obligation to submit reports on the realization of fund usage as referred to in paragraph (1) is only carried out until all funds have been used by the Target Company.

Article 58
(1) The Custodian Bank of the Limited Participation Mutual Fund is required to submit:

a. reports on the assets and liabilities of the Limited Participation Mutual Fund; b. reports on the operations of the Limited Participation Mutual Fund;
c. reports on the changes in net assets of the Limited Participation Mutual Fund; and
d. summaries of the portfolio of the Limited Participation Mutual Fund, to the Financial Services Authority and holders of Participation Units every 3 (three) months using the format contained in the appendix of capital market sector legislation regulating reports on Mutual Funds. (2) The reports as referred to in paragraph (1) must be submitted electronically through the reporting system provided by the Financial Services Authority at the latest on the 12th (twelfth) day after the end of the months of March, June, September, and December. (3) Provisions regarding the procedure for electronic submission of reports as referred to in paragraph (2) refer to Circular Letters of the Financial Services Authority regarding the submission of applications for licensing, registration, recording, approval, and reporting electronically for actors in the field of investment management.

Article 59
The calculation of the Net Asset Value of the Limited Participation Mutual Fund as referred to in Article 15 must be submitted by the Custodian Bank to the Financial Services Authority at the latest on the 12th (twelfth) day after the end of the months of March, June, September, and December.

Article 60
Investment reports and divestment reports as referred to in Article 56 letters a and b must be submitted by the Investment Manager to the Financial Services Authority and holders of Participation Units of the Limited Participation Mutual Fund at the latest 5 (five) working days since the Limited Participation Mutual Fund invests or divests from a Security.

Article 61
Periodic reports on the implementation of Real Sector Activities as referred to in Article 56 letter c must be submitted by the Investment Manager to the Financial Services Authority and holders of Participation Units of the Limited Participation Mutual Fund at the latest 5 (five) working days since the end of the 6 (six) month period.

Article 62
Reports on the results of the General Meeting of Unit Holders as referred to in Article 51 must be submitted by the Investment Manager, Custodian Bank, or holder of Participation Units of the Limited Participation Mutual Fund convening the General Meeting of Unit Holders to the Financial Services Authority at the latest 2 (two) working days after the General Meeting of Unit Holders is held.

Article 63
The audited Annual Financial Statements of the Limited Participation Mutual Fund as referred to in Article 53 must be submitted by the Investment Manager to the Financial Services Authority at the latest by the end of the third month after the end of the Annual Financial Statement period.

Article 64
In the event that the deadline for submitting reports as referred to in Article 57, Article 58, Article 59, and Article 63 falls on a holiday, such reports must be submitted on the next 1 (one) working day.

CHAPTER VIII
DISSOLUTION OF LIMITED PARTICIPATION MUTUAL FUNDS

Article 65
The Limited Participation Mutual Fund must be dissolved in the following cases:

a. ordered by the Financial Services Authority in accordance with the provisions of capital market sector legislation; b. the Investment Manager and Custodian Bank have agreed to dissolve the Limited Participation Mutual Fund after first obtaining approval from all holders of Participation Units; or
c. the Limited Participation Mutual Fund has not invested in Target Company Securities for a period of 1 (one) year since being recorded or obtaining recording from the Financial Services Authority.

Article 66
In the event that a Limited Participation Mutual Fund is dissolved due to the conditions referred to in Article 65 letter a, the Investment Manager is required to:
a. submit the dissolution, liquidation, and plan for the distribution of liquidation results of the Limited Participation Mutual Fund to all holders of Units of Participation of the Limited Participation Mutual Fund no later than 2 (two) working days since ordered by the Financial Services Authority, and on the same day notify in writing to the Custodian Bank to stop the calculation of the Net Asset Value of the Limited Participation Mutual Fund; b. instruct the Custodian Bank to pay the liquidation proceeds that are the rights of the holders of Units of Participation with the provision that the calculation is done proportionally from the Net Asset Value at the time of dissolution and the liquidation proceeds are received by the holders of Units of Participation no later than 20 (twenty) working days since the dissolution of the Limited Participation Mutual Fund was ordered by the Financial Services Authority; and
c. submit a report on the results of the dissolution, liquidation, and distribution of liquidation results of the Limited Participation Mutual Fund to the Financial Services Authority no later than 60 (sixty) days since the dissolution was ordered by the Financial Services Authority with documents as follows:

1. a report on the results of the dissolution, liquidation, and distribution of liquidation results of the Limited Participation Mutual Fund accompanied by an opinion from a legal consultant registered with the Financial Services Authority;
2. financial reports related to the dissolution, liquidation, and distribution of liquidation results of the Limited Participation Mutual Fund audited by an accountant registered with the Financial Services Authority; and
3. the deed of dissolution and liquidation of the Limited Participation Mutual Fund from a notary registered with the Financial Services Authority.

Article 67
In the event that a Limited Participation Mutual Fund is dissolved due to the conditions referred to in Article 65 letter b, the Investment Manager is required to:
a. submit to the Financial Services Authority within a time limit of no later than 2 (two) working days since the agreement to dissolve the Limited Participation Mutual Fund by the Investment Manager and the Custodian Bank was reached, attaching:

1. the agreement to dissolve and liquidate the Limited Participation Mutual Fund between the Investment Manager and the Custodian Bank;
2. the approval of the holders of Units of Participation of the Limited Participation Mutual Fund;
3. the reasons for dissolution; and
4. the latest financial conditions of the Limited Participation Mutual Fund,
   and on the same day submit the plan for the dissolution, liquidation, and distribution of liquidation results of the Limited Participation Mutual Fund to the holders of Units of Participation and notify in writing to the Custodian Bank to stop the calculation of the Net Asset Value of the Limited Participation Mutual Fund; b. instruct the Custodian Bank to pay or distribute the liquidation proceeds that are the rights of the holders of Units of Participation of the Limited Participation Mutual Fund with the provision that the calculation is done proportionally from the Net Asset Value at the time the liquidation is completed and the liquidation proceeds are received by the holders of Units of Participation no later than 7 (seven) working days since the liquidation is completed; and
   c. submit a report on the results of the dissolution, liquidation, and distribution of liquidation results of the Limited Participation Mutual Fund to the Financial Services Authority no later than 60 (sixty) days since dissolved with documents as follows:
5. a report on the results of the dissolution, liquidation, and distribution of liquidation results of the Limited Participation Mutual Fund accompanied by an opinion from a legal consultant registered with the Financial Services Authority;
6. financial reports related to the dissolution, liquidation, and distribution of liquidation results of the Limited Participation Mutual Fund audited by an accountant registered with the Financial Services Authority; and
7. the deed of dissolution and liquidation of the Limited Participation Mutual Fund from a notary registered with the Financial Services Authority.

Article 68
In the event that a Limited Participation Mutual Fund is dissolved due to the conditions referred to in Article 65 letter c, the Investment Manager is required to:
a. submit a report on the conditions referred to in Article 65 letter c, the plan for the dissolution, liquidation, and distribution of liquidation results of the Limited Participation Mutual Fund to the Financial Services Authority and inform the holders of Units of Participation, if there are holders of Units of Participation, no later than 2 (two) working days since the end of the time period referred to in Article 65 letter c; b. instruct the Custodian Bank to pay or distribute the liquidation proceeds that are the rights of the holders of Units of Participation of the Limited Participation Mutual Fund with the provision that the calculation is done proportionally from the Net Asset Value at the time the liquidation is completed and the liquidation proceeds are received by the holders of Units of Participation no later than 7 (seven) working days since the liquidation is completed, if there are liquidation proceeds;
c. dissolve the Limited Participation Mutual Fund within a time limit of no later than 10 (ten) working days since the end of the time period referred to in Article 65 letter c; and
d. submit a report on the results of the dissolution, liquidation, and distribution of liquidation results of the Limited Participation Mutual Fund to the Financial Services Authority no later than 60 (sixty) days since dissolved with documents as follows:

1. a report on the results of the dissolution, liquidation, and distribution of liquidation results of the Limited Participation Mutual Fund accompanied by an opinion from a legal consultant registered with the Financial Services Authority;
2. financial reports related to the dissolution, liquidation, and distribution of liquidation results of the Limited Participation Mutual Fund audited by an accountant registered with the Financial Services Authority; and
3. the deed of dissolution and liquidation of the Limited Participation Mutual Fund from a notary registered with the Financial Services Authority.

CHAPTER IX
ADMINISTRATIVE SANCTIONS

Article 69
(1) Any party who violates the provisions as referred to in Article 2, Article 5, Article 6 paragraph (1), paragraph (3), paragraph (5), paragraph (6), paragraph (7), and paragraph (8), Article 7, Article 8, Article 9 paragraph (1), paragraph (3), paragraph (4), Article 11 paragraph (1), Article 12, Article 13, Article 14 paragraph (3) and paragraph (4), Article 15, Article 17 paragraph (1), paragraph (2), paragraph (4), and paragraph (5), Article 18 paragraph (1), paragraph (2), paragraph (4), and paragraph (5), Article 19 paragraph (1), paragraph (4), and paragraph (5), paragraph (6), Article 20, Article 21, Article 23, Article 24, Article 25, Article 26, Article 27, Article 28 paragraph (2) and paragraph (5), Article 29, Article 30 paragraph (1), Article 31 paragraph (1), Article 32, Article 33, Article 40, Article 41 paragraph (2), Article 44, Article 45 paragraph (2) and paragraph (7), Article 47, Article 48 paragraph (3) and paragraph (8), Article 51, Article 52, Article 53, Article 54, Article 55, Article 56, Article 57 paragraph (1), Article 58, Article 59, Article 60, Article 61, Article 62, Article 63, Article 64, Article 65, Article 66, Article 67, and Article 68, shall be subject to administrative sanctions. (2) Sanctions as referred to in paragraph (1) shall also be imposed on parties who cause the occurrence of violations as referred to in paragraph (1). (3) Sanctions as referred to in paragraph (1) and paragraph (2) shall be imposed by the Financial Services Authority. (4) Administrative sanctions as referred to in paragraph (1) consist of:
a. written warning; b. fines, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business licenses; f. cancellation of approval; and/or g. cancellation of registration.
(5) Administrative sanctions as referred to in paragraph (4) letter b, letter c, letter d, letter e, letter f, or letter g may be imposed with or without being preceded by the imposition of administrative sanctions in the form of a written warning as referred to in paragraph (4) letter a. (6) Administrative sanctions in the form of fines as referred to in paragraph (4) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (4) letter c, letter d, letter e, letter f, or letter g. (7) The procedure for imposing sanctions as referred to in paragraph (3) shall be carried out in accordance with the provisions of applicable laws and regulations.

Article 70
In addition to administrative sanctions as referred to in Article 69 paragraph (4), the Financial Services Authority may take certain actions against any party who violates the provisions of this Financial Services Authority Regulation.

Article 71
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 69 paragraph (4) and certain actions as referred to in Article 70 to the public.

CHAPTER X
TRANSITIONAL PROVISIONS

Article 72
Limited Participation Mutual Funds that have obtained registration from the Financial Services Authority before the date of issuance of this Financial Services Authority Regulation:
a. are required to make adjustments to transfer the registration of Units of Participation of the Limited Participation Mutual Fund into the Integrated Investment Management System (S-INVEST) no later than 6 (six) months since the enactment of this Financial Services Authority Regulation; and b. are prohibited from making changes to the features, structure, and investment policies of the Limited Participation Mutual Fund.

CHAPTER XI
CLOSING PROVISIONS

Article 73
At the time this Financial Services Authority Regulation comes into force, the Financial Services Authority Regulation Number 37/POJK.04/2014 concerning Collective Investment Contracts of Limited Participation Mutual Funds (State Gazette of the Republic of Indonesia Year 2014 Number 379, Supplement to the State Gazette of the Republic of Indonesia Year 2014 Number 5649) is repealed and declared invalid.

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

Article 74
This Financial Services Authority Regulation comes into force on the date of enactment.
To be known by everyone, 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 13 December 2019
CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO
Enacted in Jakarta on 18 December 2019
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2019 NUMBER 240

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 34 /POJK.04/2019
CONCERNING
COLLECTIVE INVESTMENT CONTRACTS OF LIMITED PARTICIPATION MUTUAL FUNDS

I. GENERAL
Limited Participation Mutual Funds play a strategic role as one of the financing channels for the real sector and infrastructure through the capital market. This is evident from the development of the number of products and managed funds of Limited Participation Mutual Funds which has increased along with the widening understanding of Target Companies in utilizing this product to obtain funding, as well as the increased understanding of investors to invest through this product. Since the issuance of regulations related to Limited Participation Mutual Funds until now, Limited Participation Mutual Funds have experienced quite significant growth. However, to accommodate the needs of industry players for more flexible financing structures while still maintaining professional investment management and adequate risk management, improvements to regulations related to Limited Participation Mutual Funds need to be made. Through the improvement of regulations related to Limited Participation Mutual Funds, Limited Participation Mutual Funds have a wider range of basic investment assets. The broadening of basic assets and investment structures in this regulation is expected to have a positive impact on the further development of the utilization of Limited Participation Mutual Fund products in financing the real sector and infrastructure.

II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.

Article 2
Provisions of laws and regulations in the capital market sector regulating Collective Investment Contracts of Mutual Funds are:

1. Financial Services Authority Regulation Number 23/POJK.04/2016 concerning Collective Investment Contracts of Mutual Funds (State Gazette of the Republic of Indonesia Year 2016 Number 109, Supplement to the State Gazette of the Republic of Indonesia Number 5886);
2. Regulation Number X.D.1, appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number KEP-06/PM/2004 concerning Mutual Fund Reports; and
3. Regulation Number IX.C.6, appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number KEP-22/PM/2004 concerning Guidelines on the Form and Content of Prospectuses in the Framework of Public Offerings of Mutual Funds.

Article 3
Sufficiently clear.

Article 4
Sufficiently clear.

Article 5
Paragraph (1)
Considering that all funds managed by Investment Managers are public funds, maximum security is needed by requiring Investment Managers to carry out their duties as best as possible for the interests of the Limited Participation Mutual Fund.

Paragraph (2)
Sufficiently clear.

Article 6
Sufficiently clear.

Article 7
Letter a
Sufficiently clear.

Letter b
Number 1
Examples of setting investment policies and strategies on Securities related to Real Sector Activities include providing directions to accept or reject investment proposals on Securities related to a real sector activity proposed by the Investment Management Team, in the event that the Investment Management Team is unsure whether the investment to be made is in accordance with the established investment policies and strategies or not.

Number 2
Sufficiently clear.

Letter c
Sufficiently clear.

Letter d
Sufficiently clear.

Letter e
Sufficiently clear.

Letter f
Sufficiently clear.

Letter g
Sufficiently clear.

Letter h
Sufficiently clear.

Letter i
Examples of adequate procedures include procedures containing flowcharts for limited offerings and sales of Limited Participation Mutual Funds to Professional Investors, procedures containing mechanisms for authorization and supervision of limited offerings and sales of Limited Participation Mutual Funds to Professional Investors, and procedures containing documents and administration required in limited offerings and sales of Limited Participation Mutual Funds to Professional Investors.

Letter j
Sufficiently clear.

Article 8
Sufficiently clear.

Article 9
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Examples of Real Sector Activities include:
a. Limited Participation Mutual Funds invest in Target Companies for the purpose of producing goods, such as buying a factory for textile production. b. Limited Participation Mutual Funds invest in Target Companies for the purpose of producing services, such as buying vehicles for rental.
c. Limited Participation Mutual Funds invest in Target Companies which are then lent back by the company, inter alia, to finance small and medium enterprises operating in the real sector.
d. Limited Participation Mutual Funds invest in Target Companies for the purpose of adding working capital. e. Limited Participation Mutual Funds invest in Securities of start-up companies in the creative economy industry and/or technology industry. f. Limited Participation Mutual Funds invest in debt-type Securities issued through Public Offerings. g. Limited Participation Mutual Funds invest in debt-type Securities issued by the Government of the Republic of Indonesia.

Paragraph (3)
Letter a
The term “similar Securities” refers to Securities that have the same nature of Securities, such as similar equity-type Securities or similar debt-type Securities.

Letter b
Sufficiently clear.

Letter c
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Article 10
Paragraph (1)
Each holder of Units of Participation of a Limited Participation Mutual Fund must have a minimum investment of 1,000,000 (one million) Units of Participation, where the initial investment value is 1,000,000 (one million) multiplied by Rp1,000.00 (one thousand rupiah), which is the initial Net Asset Value of Units of Participation of the Limited Participation Mutual Fund. This minimum investment value will change according to changes in the Net Asset Value of Units of Participation of the Limited Participation Mutual Fund occurring due to changes in the value of the Securities Portfolio. Investments in Units of Participation of the Limited Participation Mutual Fund cannot be reduced but can be increased to more than 1,000,000 (one million) Units of Participation of the Limited Participation Mutual Fund.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Article 11
Paragraph (1)
Letter a
Examples of debt-type Securities offered through Public Offerings and/or not through Public Offerings as long as they are related to Real Sector Activities include government securities, corporate bond securities of issuers, and debt securities not offered through public offerings by closed companies. Examples of fixed-income Sharia Securities offered through Public Offerings and/or not through Public Offerings as long as they are related to Real Sector Activities include Sharia government securities and ijarah sukuk.

Letter b
Sufficiently clear.

Letter c
Hybrid-type Securities include:
a. Securities that have a combination of features between debt-type Securities and equity-type Securities; and b. Variable-income Sharia Securities.

Paragraph (2)
Sufficiently clear.

Article 12
Letter a
The term “arm’s length condition” in these provisions refers to conditions in transactions between the Parties that are fair and independent.
In this case, even if there is an affiliation relationship between the Investment Manager and the Target Company, the transaction must be conducted as if it were a transaction with an unaffiliated Party, where the Investment Manager always acts independently and professionally.

Letter b
Sufficiently clear.

Letter c
Sufficiently clear.

Article 13
Letter a
The term “foreign Securities” refers to Securities issued, offered, and/or traded abroad based on laws and regulations in the country where the Securities are issued, except for Securities traded abroad but issued by:

1. The Government of the Republic of Indonesia;
2. Indonesian legal entities that are Issuers and/or Public Companies;
3. foreign legal entities whose shares are largely or entirely owned directly or indirectly by Issuers or Public Companies as referred to in number 2, and foreign legal entities specifically established to raise funds from abroad for the interests of the aforementioned Issuers or Public Companies; and/or
4. foreign legal entities whose shares are largely or entirely owned directly or indirectly by State-Owned Enterprises.

Letter b
Sufficiently clear.

Letter c
Sufficiently clear.

Letter d
Sufficiently clear.

Article 14
Sufficiently clear.

Article 15
Sufficiently clear.

Article 16
Examples of trustees supervising the implementation of debt-type Securities issuance agreements include trustees supervising the use of funds from the issuance of debt-type Securities purchased by Limited Participation Mutual Funds used in accordance with the agreement.

Article 17
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Parties providing guarantees can be Target Companies or Third Parties acting on behalf of Target Companies.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Article 18
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Experience in the field of corporate financial valuation includes experience in the fields of corporate finance, investment banking, and/or private equity.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
Termination of the agreement before the end of the contract period can occur, inter alia, due to:

1. force majeure;
2. members of the Investment Committee from third parties who are incapable of performing their duties; or
3. members of the Investment Committee from third parties who have passed away.

Paragraph (5)
Sufficiently clear.

Article 19
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
Termination of agreements with experts, members of the Board of Directors, and/or Commissioners of Target Companies from third parties before the end of the contract period can occur, inter alia, due to:

1. force majeure;
2. experts, members of the Board of Directors, and/or Commissioners from third parties who are incapable of performing their duties; or
3. experts, members of the Board of Directors, and/or Commissioners from third parties who have passed away.

Paragraph (6)
Sufficiently clear.

Article 20
Letter a
Sufficiently clear.

Letter b
Examples of safeguarding the interests of Limited Participation Mutual Funds over investments in equity-type Securities of Target Companies include having the ability to make decisions made through the General Meeting of Shareholders of Target Companies, ownership of control over equity-type Securities of Target Companies, placement of directors and/or strategic managers who can have the ability to make decisions, and/or other mechanisms that can safeguard the interests of Limited Participation Mutual Funds over investments in Target Companies.

Article 21
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Examples of clauses regarding the time period and/or conditions for selling equity-type Securities in Collective Investment Contracts and Disclosure Documents of Limited Participation Mutual Funds include:
a. Limited Participation Mutual Funds will release ownership from Target Companies within a period of 1 (one) year after the Public Offering of equity-type Securities of Target Companies on the Indonesia Stock Exchange; or b. Limited Participation Mutual Funds will release ownership from Target Companies after there is a price increase of at most 70% (seventy percent) from the initial offering price of equity-type Securities of Target Companies listed on the Indonesia Stock Exchange.

Article 22
Sufficiently clear.

Article 23
Sufficiently clear.

Article 24
Sufficiently clear.

Article 25
Sufficiently clear.

Article 26
Paragraph (1)
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
Sufficiently clear.

Letter d
Sufficiently clear.

Letter e
Sufficiently clear.

Letter f
Sufficiently clear.

Letter g
Sufficiently clear.

Letter h
Sufficiently clear.

Letter i
Sufficiently clear.

Letter j
Sufficiently clear.

Letter k
Sufficiently clear.

Letter l
Sufficiently clear.

Letter m
Sufficiently clear.

Letter n
Sufficiently clear.

Letter o
Sufficiently clear.

Letter p
Sufficiently clear.

Letter q
Sufficiently clear.

Letter r
Sufficiently clear.

Letter s
Sufficiently clear.

Letter t
Sufficiently clear.

Letter u
Sufficiently clear.

Letter v
Sufficiently clear.

Letter w
Sufficiently clear.

Letter x
In practice, the “investment termination mechanism” referred to is also known as an exit strategy.

Letter y
Sufficiently clear.

Letter z
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Article 27
Sufficiently clear.

Article 28
Sufficiently clear.

Article 29
Sufficiently clear.

Article 30
Sufficiently clear.

Article 31
Sufficiently clear.

Article 32
Sufficiently clear.

Article 33
Sufficiently clear.

Article 34
Sufficiently clear.

Article 35
Letter a
The term “agreements related to Limited Participation Mutual Funds” includes, inter alia, agreements with legal consultants registered with the Financial Services Authority, agreements with notaries registered with the Financial Services Authority, agreements with accountants registered with the Financial Services Authority, medium-term notes issuance agreements or public offering debt securities agreements, and agreements related to guarantees.

Letter b
Sufficiently clear.

Letter c
Clearly stated.

Letter d
Clearly stated.

Letter e
A concise financial summary of the Target Company issuing debt-type Securities for the last 3 (three) years or since its establishment, sourced from financial reports audited by accountants registered with the Financial Services Authority.

Letter f
Clearly stated.

Letter g
In the event that the investment assets are debt-type Securities issued by the Government of the Republic of Indonesia, the Info Memo is replaced with the Disclosure Document of the issuance of said Securities.

Letter h
Clearly stated.

Letter i
The term "documents related to the issuance of debt-type Securities" includes, among others, the debt-type Securities issuance agreement, the trustee appointment agreement, and the Target Company's debt-type Securities purchase agreement. The trustee appointment agreement and the Target Company's debt-type Securities purchase agreement are submitted in the event that there is a trustee appointment agreement and a Target Company debt-type Securities purchase agreement.

Letter j
Clearly stated.

Letter k
Clearly stated.

Letter l
Clearly stated.

Article 36

Letter a
The term "agreements related to the Limited Participation Fund" includes, among others, the Target Company's share purchase agreement, agreements with legal consultants registered with the Financial Services Authority, agreements with notaries registered with the Financial Services Authority, agreements with accountants registered with the Financial Services Authority, and agreements with appraisers registered with the Financial Services Authority.

Letter b
Clearly stated.

Letter c
Clearly stated.

Letter d
Clearly stated.

Letter e
Clearly stated.

Letter f
Clearly stated.

Letter g
A concise financial summary of the Target Company issuing equity-type Securities for the last 3 (three) years or since its establishment, sourced from financial reports audited by accountants registered with the Financial Services Authority.

Letter h
Clearly stated.

Letter i
Clearly stated.

Letter j
The term "documents related to the issuance of Securities" includes, among others:

1. equity-type Securities issuance agreement;
2. agreement on the appointment of experts, board of directors members, and/or commissioners from third parties to represent the Limited Participation Fund in the Target Company, if there is an agreement on the appointment of experts, board of directors members, and/or commissioners from third parties to represent the Limited Participation Fund in the Target Company; and
3. Target Company share purchase agreement.

Letter k
Clearly stated.

Letter l
Clearly stated.

Letter m
Clearly stated.

Article 37

Letter a
The term "agreements related to the Limited Participation Fund" includes, among others, the Target Company's hybrid-type Securities issuance agreement, agreements with legal consultants registered with the Financial Services Authority, agreements with notaries registered with the Financial Services Authority, agreements with accountants registered with the Financial Services Authority, and agreements with appraisers registered with the Financial Services Authority.

Letter b
Clearly stated.

Letter c
Clearly stated.

Letter d
Clearly stated.

Letter e
A concise financial summary of the Target Company issuing equity-type Securities for the last 3 (three) years or since its establishment, sourced from financial reports audited by accountants registered with the Financial Services Authority.

Letter f
Clearly stated.

Letter g
Clearly stated.

Letter h
Documents related to the issuance of Securities include, among others, the hybrid-type Securities issuance agreement and other related agreements.

Letter i
Clearly stated.

Letter j
Clearly stated.

Letter k
Clearly stated.

Article 38
Clearly stated.

Article 39

Paragraph (1)
Clearly stated.

Paragraph (2)

Letter a
The presentation referred to in this regulation is intended to obtain a comprehensive explanation.

Letter b
The on-site inspection referred to in this regulation is intended to ensure the existence of Real Sector Activities and/or the Target Company.

Article 40
Clearly stated.

Article 41

Paragraph (1)
Regulations in the capital market sector governing the Fair Market Value of Securities in the portfolio of Mutual Funds are Regulation Number IV.C.2, appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number KEP-367/BL/2012 dated July 9, 2012 concerning the Fair Market Value of Securities in the Portfolio of Mutual Funds.

Paragraph (2)
Clearly stated.

Article 42
Clearly stated.

Article 43
Clearly stated.

Article 44
Clearly stated.

Article 45

Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
The request by Unit Holders to the Financial Services Authority to hold a General Meeting of Unit Holders must be accompanied by proof of the request to hold a General Meeting of Unit Holders submitted to the Investment Manager and Custodian Bank.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Paragraph (7)
Clearly stated.

Article 46
Clearly stated.

Article 47
Clearly stated.

Article 48
Clearly stated.

Article 49
Clearly stated.

Article 50
Clearly stated.

Article 51
Clearly stated.

Article 52
The term "generally accepted accounting principles" in this regulation refers to the financial accounting standards set by the Indonesian Institute of Accountants and other accounting practices commonly applied in the capital market.

Article 53
Clearly stated.

Article 54
Clearly stated.

Article 55
The term "material information or facts" refers to important and relevant information or facts regarding events, occurrences, or facts that can influence the price of Securities and/or the decisions of investors, prospective investors, or other interested parties regarding such information or facts.

Article 56
Clearly stated.

Article 57
Clearly stated.

Article 58

Paragraph (1)
Regulations in the capital market sector governing Mutual Fund reports are Regulation Number X.D.1, appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number KEP-06/PM/2004 concerning Mutual Fund Reports.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Article 59
Clearly stated.

Article 60
Clearly stated.

Article 61
Clearly stated.

Article 62
Clearly stated.

Article 63
Clearly stated.

Article 64
Clearly stated.

Article 65
Clearly stated.

Article 66

Letter a
Clearly stated.

Letter b
Clearly stated.

Letter c
Financial reports related to the dissolution, liquidation, and distribution of liquidation proceeds of the Limited Participation Fund, audited by accountants registered with the Financial Services Authority, cover the period up to the completion of the dissolution, liquidation, and distribution of liquidation proceeds of the Limited Participation Fund.

Article 67

Letter a
Clearly stated.

Letter b
Clearly stated.

Letter c
Financial reports related to the dissolution, liquidation, and distribution of liquidation proceeds of the Limited Participation Fund, audited by accountants registered with the Financial Services Authority, cover the period up to the completion of the dissolution, liquidation, and distribution of liquidation proceeds of the Limited Participation Fund.

Article 68

Letter a
Clearly stated.

Letter b
Clearly stated.

Letter c
Clearly stated.

Letter d
Financial reports related to the dissolution, liquidation, and distribution of liquidation proceeds of the Limited Participation Fund, audited by accountants registered with the Financial Services Authority, cover the period up to the completion of the dissolution, liquidation, and distribution of liquidation proceeds of the Limited Participation Fund.

Article 69
Clearly stated.

Article 70
The term "specific actions" includes, among others, orders to the Investment Manager managing the Limited Participation Fund to divest investments made in the Target Company.

Article 71
Clearly stated.

Article 72
Clearly stated.

Article 73
Clearly stated.

Article 74
Clearly stated.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6435