Financial Services Authority Regulation Number 4/POJK.05/2018 Concerning Secondary Housing Financing Companies

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

COPY
FINANCIAL SERVICES AUTHABILITY REGULATION
NUMBER 4/POJK.05/2018
CONCERNING
SECONDARY HOUSING FINANCING COMPANIES

BY THE GRACE OF THE ALMIGHTY GOD,
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to encourage government programs in meeting the need for decent housing for the Indonesian people through the optimization of financing facilities from the secondary housing market, and to support the role of secondary housing financing companies in developing the secondary housing market without disregarding prudential aspects, it is necessary to establish clear and comprehensive regulations for the supervision of secondary housing financing companies; b. that based on the considerations referred to in letter a, it is necessary to establish a Financial Services Authority Regulation concerning Secondary Housing Financing Companies;

Recalling:
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);

DECIDES:

To Establish: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING SECONDARY HOUSING FINANCING COMPANIES.

CHAPTER I
GENERAL PROVISIONS

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

Secondary Housing Financing is the organization of medium-term and/or long-term fund distribution activities by distributing loans and/or financing to housing credit distribution institutions and/or asset securitization to the originator creditor.
Secondary Housing Financing Company, hereinafter abbreviated as PPSP, is a limited liability company established by the Government of the Republic of Indonesia to conduct Secondary Housing Financing business activities, execute special tasks from the government, and other business activities based on shareholder approval.
Originator Creditor is a financial institution issuing credit in the form of a bank or other financial institution that has financial assets.
Financial Asset is the receivables obtained by the Originator Creditor from granting housing ownership credit to the debtor, including collateral/guarantees and the encumbrance rights attached to them.
Housing Ownership Credit, hereinafter abbreviated as KPR, is a housing ownership credit facility for landed houses and/or apartments issued by the Originator Creditor to purchase ready-to-occupy houses, including those conducted based on Sharia principles.
KPR Distribution Institution is a bank and non-bank financial institution that distributes KPR.
Loan Distribution is the provision of funds to KPR Distribution Institutions that requires the settlement of all obligations after a certain period.
Financing Distribution is the provision of funds to KPR Distribution Institutions conducted based on Sharia principles.
Sharia Principles are Islamic legal provisions based on fatwas and/or Sharia conformity statements from the National Sharia Board of the Indonesian Ulema Council.
Securitization is the transformation of illiquid assets into liquid assets by purchasing Financial Assets from the Originator Creditor and issuing asset-backed securities.
Asset-Backed Securities are securities that can be in the form of debt instruments or participation certificates issued by an issuer whose payments are primarily sourced from Financial Assets in the form of a collection of KPR receivables.
Sharia Business Unit, hereinafter abbreviated as UUS, is a work unit at the PPSP headquarters that functions to conduct Secondary Housing Financing business activities based on Sharia Principles and is the headquarters of branches and/or representative offices that conduct Secondary Housing Financing business activities based on Sharia Principles.
Shareholder is the Minister of Finance representing the Government of the Republic of Indonesia.
Board of Directors is the Board of Directors as referred to in Law Number 40 of 2007 concerning Limited Liability Companies.
Board of Commissioners is the Board of Commissioners as referred to in Law Number 40 of 2007 concerning Limited Liability Companies.
Sharia Supervisory Board, hereinafter abbreviated as DPS, is a part of the PPSP organ that has the task and function of supervising business activities to ensure compliance with Sharia Principles.
Good Corporate Governance is a set of processes applied in PPSP to determine decisions and manage PPSP using principles including transparency, accountability, responsibility, independence, and fairness.

CHAPTER II
ORGANIZATION

Article 2
PPSP share ownership is entirely owned by the Government of the Republic of Indonesia.

Article 3
(1) PPSP has a national operational area.
(2) PPSP is located and has its headquarters in the Capital City of the Republic of Indonesia.
(3) PPSP may open branch offices.
(4) Branch offices are directly responsible to the headquarters.
(5) PPSP must report the opening of branch offices to the Financial Services Authority within a maximum of 20 (twenty) working days calculated from the date of the branch office opening.

Article 4
(1) PPSP must have an organizational structure that clearly describes at least the following functions:
a. administration and accounting; b. marketing;
c. Securitization;
d. feasibility analysis of Loan Distribution and/or Financing Distribution; e. financial management; and f. risk management, including internal control.

(2) The organizational structure as referred to in paragraph (1) must be completed with written descriptions of duties, authorities, responsibilities, and work procedures, which are determined by the Board of Directors.

Article 5
(1) PPSP may conduct business activities based on Sharia Principles.
(2) To conduct business activities as referred to in paragraph (1), PPSP must first form a UUS.
(3) In the event that PPSP has conducted part of its business activities based on Sharia Principles before this Financial Services Authority Regulation is promulgated, PPSP must form a UUS no later than 1 (one) year since this Financial Services Authority Regulation was promulgated. (4) PPSP forming a UUS as referred to in paragraph (2) or paragraph (3) must meet the following requirements:
a. allocating working capital for UUS set aside in the form of time deposits in the name of PPSP and placed in one of the Sharia commercial banks or Sharia business units of commercial banks in Indonesia; b. having at least 1 (one) DPS who has obtained a recommendation from the National Sharia Board of the Indonesian Ulema Council;
c. having separate accounting between PPSP and UUS; and
d. having UUS leadership that meets the requirements, namely:

does not have non-performing loans and/or financing; and
has expertise and/or experience in the field of Sharia financial services.

(5) Business activities based on Sharia Principles must be conducted by PPSP using agreements that do not contradict Sharia Principles.

Article 6
(1) The formation of UUS as referred to in Article 5 paragraph (2) or paragraph (3) must first obtain approval from the Financial Services Authority. (2) To obtain approval for the formation of UUS as referred to in paragraph (1), the PPSP Board of Directors must submit an application for UUS formation approval to the Financial Services Authority using Format 1 contained in the Appendix, which is an integral part of this Financial Services Authority Regulation, accompanied by documents:
a. photocopy of the amendment to the articles of association stating:

one of the purposes of PPSP, namely conducting Secondary Housing Financing business activities based on Sharia Principles; and
the authority and responsibility of the DPS, accompanied by proof of approval and/or notification receipt from the competent authority;
b. photocopy of proof of UUS working capital deposit in the form of time deposits in the name of PPSP placed in one of the Sharia commercial banks or Sharia business units of commercial banks in Indonesia, which has been legalized by the receiving bank and remains valid during the UUS formation licensing process;
c. Board of Directors decision regarding the approval of working capital placement on UUS accompanied by the amount of working capital placement;
d. DPS data for PPSP, including:
photocopy of identification cards (ID card) or valid passports;
photocopy of the tax identification number (NPWP);
curriculum vitae completed with the latest 4 x 6 cm (four by six centimeter) color photos;
photocopy of the minutes of the Shareholders' General Meeting regarding the appointment of the DPS;
recommendation letter from the National Sharia Board of the Indonesian Ulema Council; and
statement letter stating that there are no non-performing loans and/or financing;
e. UUS leadership data, including:
photocopy of identification cards (ID card) or valid passports;
photocopy of the tax identification number (NPWP);
curriculum vitae completed with the latest 4 x 6 cm (four by six centimeter) color photos;
proof of appointment letter as UUS leadership by the PPSP Board of Directors;
statement letter stating that there are no non-performing loans and/or financing; and
proof of expertise, training, and/or experience in the field of Sharia finance;
f. initial financial report of UUS separate from PPSP business activities; g. agreement data for Secondary Housing Financing business activities based on Sharia Principles; and h. UUS work plan to be opened, at least containing:
feasibility study regarding market opportunities and economic potential;
business activity targets based on Sharia Principles and steps taken to achieve the said targets;
systems and work procedures based on Sharia Principles;
number and composition of personnel; and
monthly cash flow projections for 12 (twelve) months starting from when UUS conducts operational activities, as well as projections of financial position reports and financial performance reports.

Article 7
(1) In processing the UUS formation approval application, the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 6 paragraph (2); and b. feasibility analysis of the work plan as referred to in Article 6 paragraph (2) letter h.

(2) The Financial Services Authority provides approval or rejection of the UUS formation approval application within a maximum of 20 (twenty) working days after the complete UUS formation approval application documents as referred to in Article 6 paragraph (2) are received.

(3) Rejection of the UUS formation approval application is accompanied by the reasons for rejection.

CHAPTER III
BUSINESS OPERATION
Part One
Business Activities

Article 8
(1) PPSP business activities include:
a. Securitization; b. Loan Distribution and/or Financing Distribution to KPR Distribution Institutions;
c. execution of special tasks from the government; and
d. other business activities supporting construction and development in the field of housing financing with the approval of the Shareholder.

(2) PPSP business activities as referred to in paragraph (1) may be conducted based on Sharia Principles.

(3) The organization of business activities based on Sharia Principles as referred to in paragraph (2) must meet the following requirements:
a. principles of justice ('adl), balance (tawazun), benefit (maslahah), and universalism (alamiyah); b. does not contain prohibited elements, such as riba, maisir, gharar, zalim, risywah, sin, and haram objects; and
c. is conducted using agreements in accordance with fatwas from the National Sharia Board of the Indonesian Ulema Council.

Article 9
(1) Securitization activities as referred to in Article 8 paragraph (1) letter a are conducted by purchasing a collection of Financial Assets from the Originator Creditor and issuing Asset-Backed Securities.

(2) In carrying out Securitization activities, PPSP may act as a global coordinator, underwriter, Securitization arranger, and/or credit enhancer.

(3) PPSP must have procedures containing requirements regarding the criteria for Financial Assets that can be securitized.

(4) PPSP must carry out management and monitoring activities against Asset-Backed Securities that have been issued.

Article 10
(1) In carrying out Loan Distribution and/or Financing Distribution to KPR Distribution Institutions as referred to in Article 8 paragraph (1) letter b, PPSP must have policies and procedures that consider risk mitigation.

(2) The Financial Services Authority assesses the policies and procedures for Loan Distribution and/or Financing Distribution as referred to in paragraph (1).

(3) The Financial Services Authority may request PPSP to improve the policies and procedures for Loan Distribution and/or Financing Distribution.

Article 11
(1) Loan Distribution and/or Financing Distribution to KPR Distribution Institutions conducted by PPSP as referred to in Article 8 paragraph (1) letter b must be accompanied by underlying housing financing assets.

(2) In the event that Loan Distribution and/or Financing Distribution is accompanied by collateral in the form of KPR receivables, the KPR receivables must at least meet the following requirements:
a. originating from credit or financing for the purchase of landed houses and/or apartments; b. collateral in the form of land is bound by first-level encumbrance rights;
c. KPR customers are protected by life insurance;
d. KPR collateral is protected by fire insurance; and e. KPR collectibility is in a "performing" status at the time of collateral binding (cut off).

(3) In the event that collateral in the form of land as referred to in paragraph (2) letter b is not bound by first-level encumbrance rights, PPSP must conduct the closure of credit guarantees or credit insurance against the distributed Loan Distribution and/or Financing Distribution.

(4) In the event that Financing Distribution is conducted based on Sharia Principles, the insurance or guarantee mechanism as referred to in paragraph (2) and paragraph (3) must be conducted based on Sharia Principles.

(5) Requirements for KPR receivables as referred to in paragraph (2) may be exempted for KPR receivables for the implementation of government assignments regulated in separate legislation.

Article 12
(1) PPSP must report the execution of special tasks from the government as referred to in Article 8 paragraph (1) letter c and/or other business activities as referred to in Article 8 paragraph (1) letter d to the Financial Services Authority within a maximum of 10 (ten) working days since the date of business activity execution.

(2) The reporting of business activity execution as referred to in paragraph (1) is submitted to the Financial Services Authority by attaching documents in the form of:
a. descriptions containing the scheme or mechanism of business activities conducted; b. proof of DPS approval of documents as referred to in letter a in the event that business activities are conducted based on Sharia Principles;
c. proof of government assignment in the form of legislation or decisions issued by the government, for reporting on the execution of special tasks from the government as referred to in Article 8 paragraph (1) letter c; and
d. proof of Shareholder approval, for reporting on other business activities as referred to in Article 8 paragraph (1) letter d.

Part Two
Funding Sources

Article 13
(1) Funding sources for PPSP business activities are obtained in the form of:
a. state capital participation; b. debt instruments;
c. loans; and/or
d. other funding sources in accordance with legislation.

(2) Funding sources for PPSP business activities based on Sharia Principles must meet Sharia Principles.

Part Three
Direct Participation

Article 14
(1) In order to implement Secondary Housing Financing, PPSP may conduct direct participation.

(2) Direct participation as referred to in paragraph (1) may only be conducted on companies whose business activities are directly related to the construction and development of the Secondary Housing Financing market.

(3) Direct participation as referred to in paragraph (1) must first obtain approval from the Shareholder.

CHAPTER IV
HEALTH LEVELS
Part One
Liquidity

Article 15
(1) PPSP must meet the minimum liquidity ratio.

(2) The liquidity ratio as referred to in paragraph (1) is calculated using the current ratio, which is the ratio of current assets to current liabilities.

(3) The liquidity ratio as referred to in paragraph (1) for the first time since this Financial Services Authority Regulation was promulgated is set at a minimum of 110% (one hundred ten percent).

(4) Regulations regarding changes in the magnitude of the liquidity ratio as referred to in paragraph (3) are regulated in a Financial Services Authority Circular.

Part Two
Capital Adequacy

Article 16
(1) PPSP must maintain the capital adequacy ratio.

(2) The capital adequacy ratio as referred to in paragraph (1) is calculated using the gearing ratio, which is the ratio of the amount of loans received compared to PPSP equity.

(3) The capital adequacy ratio as referred to in paragraph (1) for the first time since this Financial Services Authority Regulation was promulgated is set at a maximum of 10 (ten) times.

(4) Regulations regarding changes in the magnitude of the capital adequacy ratio as referred to in paragraph (3) are regulated in a Financial Services Authority Circular.

Part Three
Asset Quality

Article 17
(1) PPSP must assess, monitor, and take necessary steps to ensure that asset quality remains good.

(2) Asset quality assessment is conducted at least on assets in the form of Loan Distribution and/or Financing Distribution.

Article 18
(1) The quality of PPSP Loan Distribution and/or Financing Distribution as referred to in Article 17 paragraph (2) is determined based on the assessment of the accuracy of paying principal and/or interest or profit sharing.

(2) The assessment of the quality of PPSP Loan Distribution and/or Financing Distribution as referred to in paragraph (1) for the first time since this Financial Services Authority Regulation was promulgated is set into 5 (five) qualities, namely:
a. performing, if there is no delay or there is a delay in paying principal and/or interest or profit sharing up to 30 (thirty) calendar days; b. special attention, if there is a delay in paying principal and/or interest or profit sharing that has exceeded 30 (thirty) calendar days up to 90 (ninety) calendar days;
c. less performing, if there is a delay in paying principal and/or interest or profit sharing that has exceeded 90 (ninety) calendar days up to 120 (one hundred twenty) calendar days;
d. doubtful, if there is a delay in paying principal and/or interest or profit sharing that has exceeded 120 (one hundred twenty) calendar days up to 180 (one hundred eighty) calendar days; and e. non-performing, if there is a delay in paying principal and/or interest or profit sharing that has exceeded 180 (one hundred eighty) calendar days.

(3) Regulations regarding changes in the assessment criteria for the quality of PPSP Loan Distribution and/or Financing Distribution as referred to in paragraph (2) are regulated in a Financial Services Authority Circular.

Part Four
Asset Write-off Provisions and Impairment Loss Reserves

Article 19
(1) PPSP must calculate asset write-off provisions for assets in the form of Loan Distribution and/or Financing Distribution to form reserves.

(2) The formation of reserves as referred to in paragraph (1) for the first time since this Financial Services Authority Regulation was promulgated is set at a minimum of:
a. 0% (zero percent) of assets with performing quality; b. 5% (five percent) of assets with special attention quality after deducting collateral value;
c. 15% (fifteen percent) of assets with less performing quality after deducting collateral value;
d. 50% (fifty percent) of assets with doubtful quality after deducting collateral value; and e. 100% (one hundred percent) of assets with non-performing quality after deducting collateral value.

(3) Regulations regarding changes in the magnitude of reserve formation as referred to in paragraph (2) are regulated in a Financial Services Authority Circular.

Article 20
(1) PPSP must form impairment loss reserves in accordance with applicable financial accounting standards.

(2) The formation of impairment loss reserves as referred to in paragraph (1) is conducted in the preparation of financial reports audited by a public accounting firm registered with the Financial Services Authority.

CHAPTER V
GOOD CORPORATE GOVERNANCE

Article 21
(1) PPSP must implement Good Corporate Governance principles in all its business activities at all levels or tiers of the organization.

(2) The implementation of Good Corporate Governance principles as referred to in paragraph (1) aims to:
a. optimize the value of PPSP for debtors, creditors, and/or other stakeholders; b. improve PPSP management in a professional, effective, and efficient manner;
c. increase the compliance of PPSP organs and DPS and the hierarchy below them so that decisions and actions are based on high ethics, compliance with legislation, and awareness of PPSP's social responsibility to stakeholders and environmental sustainability;
d. realize a healthier, reliable, trustworthy, and competitive PPSP; and e. increase PPSP's contribution to the national economy.

(3) Good Corporate Governance principles as referred to in paragraph (1) include:
a. transparency, namely openness in the decision-making process and openness in the disclosure and provision of relevant information regarding PPSP, which is easily accessible by stakeholders in accordance with legislation in the field of Secondary Housing Financing as well as standards, principles, and practices of healthy Secondary Housing Financing business organization; b. accountability, namely clarity of functions and the implementation of PPSP organ responsibilities so that PPSP performance can run transparently, fairly, effectively, and efficiently;
c. responsibility, namely the conformity of PPSP management with legislation in the field of Secondary Housing Financing and ethical values as well as standards, principles, and practices of healthy Secondary Housing Financing business organization;
d. independence, namely the state of PPSP managed independently and professionally and free from conflicts of interest and influence or pressure from any party that does not conform to legislation in the field of Secondary Housing Financing and ethical values as well as standards, principles, and practices of healthy Secondary Housing Financing business organization; and e. fairness and justice, namely equality, balance, and fairness in fulfilling the rights of stakeholders arising from agreements, legislation, and ethical values as well as standards, principles, and practices of healthy Secondary Housing Financing business organization.

Article 22
(1) The implementation of Good Corporate Governance principles as referred to in Article 21 paragraph (1) must be formulated in a guideline containing at least:
a. procedures for carrying out the duties and responsibilities of the Board of Directors, Board of Commissioners, and DPS;

b. completeness and procedures for the implementation of duties of the committee and work units exercising internal control functions;
c. policies and procedures for the implementation of compliance, internal audit, and external audit functions;
d. policies and procedures for the implementation of risk management, including internal control systems; and e. remuneration policies; and f. policies on the transparency of financial and non-financial conditions. (2) The Financial Services Authority conducts an assessment of the Good Corporate Governance Guidelines as referred to in paragraph (1). (3) The Financial Services Authority may request PPSP to make improvements to the Good Corporate Governance Guidelines as referred to in paragraph (1).

Article 23
(1) PPSP is required to conduct an assessment of the implementation of Good Corporate Governance at least once (1) in one (1) year for the year-end position. (2) The assessment as referred to in paragraph (1) can be conducted through self-assessment or by an independent party.

CHAPTER VI
RISK MANAGEMENT

Article 24
(1) PPSP is required to implement risk management effectively.
(2) The implementation of effective risk management as referred to in paragraph (1) covers at least:
a. active supervision by the Board of Directors, Board of Commissioners, and DPS; b. adequacy of policies, procedures, and risk limit determinations;
c. adequacy of risk identification, measurement, monitoring, and control processes as well as risk management information systems; and
d. comprehensive internal control systems.
(3) In implementing risk management as referred to in paragraph (1), PPSP is required to have guidelines for the implementation of risk management. (4) The Financial Services Authority conducts an assessment of the PPSP's risk management implementation guidelines as referred to in paragraph (3). (5) The Financial Services Authority may request PPSP to make improvements to the risk management implementation guidelines.

Article 25
Risk management as referred to in Article 24 covers at least the following types of risks:
a. credit risk; b. market risk;
c. liquidity risk;
d. operational risk; e. legal risk; f. reputation risk; g. strategic risk; and h. compliance risk.

Article 26
(1) In implementing risk management as referred to in Article 24 paragraph (1), PPSP is required to conduct a risk level assessment.
(2) The risk level assessment as referred to in paragraph (1) is required to be conducted at least once (1) in one (1) year for the year-end position. (3) If necessary, the Financial Services Authority may request PPSP to conduct a risk level assessment at any time.

CHAPTER VII
REPORTING
First Section
Annual Financial Reports

Article 27
(1) PPSP is required to submit annual financial reports that have been audited by a public accountant registered with the Financial Services Authority, completely in hard copy and soft copy form, to the Financial Services Authority no later than April 30 of the following year. (2) The annual financial report as referred to in paragraph (1) is prepared based on the calendar year. (3) The annual financial report must be prepared based on applicable financial accounting standards and prepared in Indonesian Rupiah.

Second Section
Monthly Reports

Article 28
(1) PPSP is required to submit monthly reports to the Financial Services Authority.
(2) In the event that PPSP has a UUS (Sharia Business Unit), PPSP is required to submit the UUS monthly report to the Financial Services Authority. (3) Provisions regarding monthly reports as referred to in paragraph (1) and paragraph (2) are regulated in Financial Services Authority regulations regarding monthly reports of non-bank financial service institutions.

Third Section
Reports on the Implementation of Good Corporate Governance

Article 29
(1) PPSP is required to prepare a report on the implementation of Good Corporate Governance at the end of each fiscal year.
(2) The report on the implementation of Good Corporate Governance as referred to in paragraph (1) is required to be submitted no later than February 28 of the following year. (3) The report on the implementation of Good Corporate Governance as referred to in paragraph (1) covers at least:
a. transparency of the implementation of Good Corporate Governance, at least covering the disclosure of all aspects of the implementation of Good Corporate Governance principles as referred to in Article 21 paragraph (3); b. assessment of the implementation of Good Corporate Governance as referred to in Article 23; and
c. an action plan that includes corrective actions required and the completion time and obstacles to its resolution, if there are still deficiencies in the implementation of Good Corporate Governance.

Fourth Section
Risk Level Assessment

Article 30
PPSP is required to submit the results of the risk level assessment as referred to in Article 26 to the Financial Services Authority, with the provisions:
a. for the risk level assessment of the year-end position as referred to in Article 26 paragraph (2), it is submitted no later than February 28 of the following year; and b. for the risk level assessment at any time as referred to in Article 26 paragraph (3), it is submitted according to the time limit set by the Financial Services Authority.

Fifth Section
Annual Business Plan Reports

Article 31
(1) PPSP is required to prepare an annual business plan.
(2) The annual business plan as referred to in paragraph (1) must:
a. be determined by the Board of Directors; b. receive approval from the Board of Commissioners and/or DPS; and
c. be socialized to management and employees in the relevant work units.
(3) The annual business plan as referred to in paragraph (1) covers at least:
a. policies and business activity plans; b. management policies and strategies;
c. implementation of risk management and compliance;
d. implementation of Good Corporate Governance; e. PPSP's financial performance in the previous period; f. projected financial reports along with the assumptions used; g. projected ratios and financial health levels; h. plans for business activity development and marketing;
i. plans for office network development and/or changes;
j. capital plans; k. financing plans;
l. organizational and human resource development plans; and
m. other information.
(4) PPSP is required to submit the annual business plan as referred to in paragraph (1) to the Financial Services Authority no later than 20 (twenty) working days after the implementation of the General Meeting of Shareholders.

Sixth Section
Amendments to the Articles of Association

Article 32
(1) PPSP is required to report certain amendments to the Articles of Association to the Financial Services Authority no later than 15 (fifteen) working days from the date of receipt of proof of approval and/or proof of receipt of notification from the competent authority. (2) Certain amendments to the Articles of Association as referred to in paragraph (1) include:
a. PPSP name; b. changes in the purpose and business activities of PPSP;
c. reduction of paid-up capital for PPSP; and/or
d. addition of paid-up capital for PPSP.
(3) The reporting of PPSP name changes as referred to in paragraph (2) letter a must use format 2 contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by documents:
a. photocopy of the deed of amendment to the Articles of Association accompanied by proof of approval from the competent authority; and b. photocopy of the tax identification number (NPWP) under the new name of PPSP. (4) The reporting of changes in the purpose and business activities of PPSP as referred to in paragraph (2) letter b must use format 3 contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by a photocopy of the deed of amendment to the Articles of Association accompanied by proof of approval from the competent authority.

(5) The reporting of reduction of paid-up capital for PPSP as referred to in paragraph (2) letter c must use format 4 contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by a photocopy of the deed of amendment to the Articles of Association accompanied by proof of approval from the competent authority. (6) The reporting of addition of paid-up capital for PPSP as referred to in paragraph (2) letter d must use format 5 contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by documents:
a. photocopy of the deed of amendment to the Articles of Association accompanied by proof of receipt of notification from the competent authority; b. photocopy of the deed of minutes of the General Meeting of Shareholders;
c. proof of addition of paid-up capital, namely:

photocopy of proof of payment of paid-up capital from Shareholders and photocopy of proof of placement of paid-up capital under the name of PPSP in one of the commercial banks, Sharia commercial banks, or Sharia business units of commercial banks in Indonesia and legalized by the receiving bank, in the event that the addition of paid-up capital is done in the form of cash deposits; or
PPSP financial reports that have been audited by a public accountant registered with the Financial Services Authority before the addition of capital, in the event that the addition of paid-up capital is done in the form of conversion of retained earnings; and
d. annual business plan and steps taken by PPSP in the use of the addition of paid-up capital.

Seventh Section
Changes to the Board of Directors, Board of Commissioners, and Sharia Supervisory Board

Article 33
(1) In the event that PPSP makes changes:
a. members of the Board of Directors; and/or b. members of the Board of Commissioners, it is required to report to the Financial Services Authority no later than 15 (fifteen) working days from the date of receipt of proof of receipt of notification from the competent authority. (2) The reporting of changes to the members of the Board of Directors and/or Board of Commissioners of PPSP as referred to in paragraph (1) must be submitted by the Board of Directors of PPSP using format 6 contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by a photocopy of the deed of amendment to the Articles of Association accompanied by proof of receipt of notification from the competent authority.

Article 34
(1) PPSP is required to report changes to the composition of the DPS to the Financial Services Authority no later than 15 (fifteen) working days from the date of appointment according to format 7 contained in the Appendix which is an integral part of this Financial Services Authority Regulation. (2) The reporting of DPS changes as referred to in paragraph (1) must be submitted by the Board of Directors of PPSP accompanied by documents:
a. curriculum vitae; b. photocopy of the deed of minutes of the General Meeting of Shareholders regarding the appointment of DPS members; and
c. recommendation letter from the National Sharia Council of the Indonesian Ulama Council.

Eighth Section
Address Changes

Article 35
(1) PPSP is required to report changes to the address of the head office and/or branch offices in writing to the Financial Services Authority no later than 10 (ten) working days from the date of the change. (2) The reporting of changes to the address of the head office and/or branch offices as referred to in paragraph (1) must use format 8 contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by proof of ownership or control over the new office building.

Article 36
If the deadline for submitting reports to the Financial Services Authority as referred to in Article 27 paragraph (1), Article 29 paragraph (2), and/or Article 30 falls on a holiday, the final deadline for submitting the report is the next working day.

CHAPTER VIII
PROHIBITIONS

Article 37
PPSP is prohibited from:
a. purchasing shares through the capital market; b. directly withdrawing funds from the public in the form of giro, savings, and/or other forms that are equivalent to them;
c. issuing promissory notes, except as collateral for the issuance of debt instruments to creditors for PPSP funding sources;
d. taking actions that cause or force other financial institutions under the supervision of the Financial Services Authority to violate statutory regulations; and/or e. taking actions that cause or force other financial institutions under the supervision of the Financial Services Authority to avoid statutory regulations.

CHAPTER IX
EXAMINATIONS

Article 38
(1) In carrying out supervisory functions, the Financial Services Authority conducts direct examinations of PPSP.
(2) Direct examinations as referred to in paragraph (1) are carried out at the PPSP office.

Article 39
(1) The Financial Services Authority conducts risk-based supervision of PPSP.
(2) Provisions regarding risk-based supervision as referred to in paragraph (1) refer to Financial Services Authority regulations regarding direct examinations of non-bank financial service institutions and Financial Services Authority regulations regarding risk level assessments of non-bank financial service institutions.

CHAPTER X
COMPLIANCE PLANS

Article 40
(1) PPSP that does not meet the provisions as referred to in Article 15 paragraph (1), Article 16 paragraph (1), Article 17 paragraph (1), Article 19 paragraph (1), and/or Article 20 paragraph (1) of this Financial Services Authority Regulation is required to submit a compliance plan to the Financial Services Authority no later than 1 (one) month from the date of determination of the violation. (2) The determination of the occurrence of a violation as referred to in paragraph (1) is done by the Financial Services Authority in writing, which can be copied to the Shareholders. (3) The compliance plan as referred to in paragraph (1) covers at least the plan to be carried out by PPSP for compliance with the provisions, accompanied by a specific time period required to meet the provisions as referred to in paragraph (1). (4) The compliance plan as referred to in paragraph (1) includes:
a. asset and/or liability restructuring; b. addition of paid-up capital;
c. transfer of part or all of the assets;
d. restriction on profit distribution; e. restriction on activities that cause violations of the provisions as referred to in paragraph (1); f. restriction on opening new branch offices; and/or g. other matters to be implemented to meet the provisions as referred to in paragraph (1). (5) The compliance plan as referred to in paragraph (1) must be signed by all members of the Board of Directors and Board of Commissioners. (6) The compliance plan as referred to in paragraph (1) must first be approved by the General Meeting of Shareholders in the event that the plan includes a plan for the addition of paid-up capital. (7) The compliance plan as referred to in paragraph (1) must obtain a statement of no objection from the Financial Services Authority. (8) In the event that the compliance plan as referred to in paragraph (1) is assessed by the Financial Services Authority as insufficient to overcome the problems, PPSP is required to make improvements to the compliance plan. (9) The Financial Services Authority provides a statement of no objection to the compliance plan submitted by PPSP, considering the problem conditions faced by PPSP, no later than 15 (fifteen) working days calculated from the date of receipt of the complete compliance plan. (10) If within the time period as referred to in paragraph (9), the Financial Services Authority does not provide a statement of no objection or response, PPSP may implement the compliance plan as referred to in paragraph (1). (11) PPSP is required to implement the compliance plan as referred to in paragraph (1).

CHAPTER XI
ADMINISTRATIVE SANCTIONS

Article 41
(1) The Board of Directors of PPSP that causes PPSP to not meet the provisions as referred to in Article 3 paragraph (5), Article 4, Article 5 paragraph (2), (3), (4), and (5), Article 6 paragraph (1), Article 8 paragraph (3), Article 9 paragraph (3) and (4), Article 10 paragraph (1), Article 11 paragraph (1), (2), (3), and (4), Article 12 paragraph (1), Article 13 paragraph (2), Article 14 paragraph (2), Article 21 paragraph (1), Article 22 paragraph (1), Article 23 paragraph (1), Article 24 paragraph (1) and (3), Article 26 paragraph (1) and (2), Article 27 paragraph (1), Article 28 paragraph (1) and (2), Article 29 paragraph (1) and (2), Article 30, Article 31 paragraph (1) and (4), Article 32 paragraph (1), Article 33 paragraph (1), Article 34 paragraph (1), Article 35 paragraph (1), Article 37, Article 40 paragraph (1), (8), and (11) of this Financial Services Authority Regulation are subject to administrative sanctions in the form of written warnings. (2) Written warning sanctions as referred to in paragraph (1) are given by the Financial Services Authority up to 3 (three) times consecutively with a validity period of each 2 (two) months. (3) The imposition of written warning sanctions as referred to in paragraph (1) is given to PPSP with a copy to the Shareholders. (4) In the event that before the end of the sanction period as referred to in paragraph (2), PPSP has met the provisions as referred to in paragraph (1), the Financial Services Authority revokes the written warning sanction. (5) In the event that the validity period of the third written warning letter ends and PPSP has not been able to meet the provisions as referred to in paragraph (1), the Financial Services Authority informs the Shareholders regarding the imposition of the written warning sanction.

CHAPTER XII
TRANSITIONAL PROVISIONS

Article 42
The provisions as referred to in Article 9 paragraph (3), Article 10 paragraph (1), Article 11 paragraph (1) and (2), Article 15, Article 16, Article 17, Article 19, and Article 20 of this Financial Services Authority Regulation are declared to be in force for 2 (two) years from the date this Financial Services Authority Regulation is promulgated.

CHAPTER XIII
CLOSING PROVISIONS

Article 43
At the time this Financial Services Authority Regulation takes effect, provisions regarding the supervision of PPSP are subject to this Financial Services Authority Regulation.

Article 44
This Financial Services Authority Regulation takes effect on the date of its promulgation.

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

In order that everyone may know it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia. Determined in Jakarta on March 27, 2018 CHAIRMAN OF THE COMMISSIONERS BOARD FINANCIAL SERVICES AUTHORITY, signed WIMBOH SANTOSO

Promulgated in Jakarta on March 29, 2018
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2018 NUMBER 40

J u n e

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 4 /POJK.05/2018
ABOUT
SECONDARY HOUSING FINANCING COMPANIES

I. GENERAL
Secondary Housing Financing Companies are financial institutions in the form of limited liability companies established to conduct business activities in the field of Secondary Housing Financing. With the existence of Secondary Housing Financing Companies, it is expected to provide financing facilities in order to increase the capacity and continuity of affordable housing financing for the community. With the ratification of Law Number 21 of 2011 concerning the Financial Services Authority on November 22, 2011, the supervisory duties over Secondary Housing Financing Companies are carried out by the Financial Services Authority, which naturally requires a legal basis for the Financial Services Authority in exercising its functions and authorities. In relation to this matter, the Financial Services Authority establishes a Financial Services Authority Regulation concerning Secondary Housing Financing Companies.

II. ARTICLE BY ARTICLE
Article 1
It is clear enough.

Article 2
It is clear enough.

Article 3
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
What is meant by "branch office" is an office that can carry out operational functions located outside the head office of PPSP, including branch offices of PPSP's UUS. Paragraph (4) It is clear enough. Paragraph (5) It is clear enough.

Article 4
It is clear enough.

Article 5
It is clear enough.

Article 6
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
It is clear enough.
Letter d
It is clear enough.
Letter e
Number 1
It is clear enough.
Number 2
It is clear enough.
Number 3
It is clear enough.
Number 4
What is meant by "proof of appointment letter as the head of UUS" is:

minutes of the General Meeting of Shareholders, in the event that the head of UUS holds a concurrent position with one of the Directors; or
appointment letter of the head of UUS by the Board of Directors, in the event that the head of UUS is held by an official below the Director.
Number 5
It is clear enough.
Number 6
It is clear enough.
Letter f
It is clear enough.
Letter g
It is clear enough.
Letter h
It is clear enough.

Article 7
It is clear enough.

Article 8
Paragraph (1)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
What is meant by "special tasks from the government" are business activities outside of Securitization, Loan Disbursement, and/or Financing Disbursement to Mortgage Loan Disbursement Institutions, or other business activities that support construction and development in the field of housing financing based on Shareholder approval. The implementation of the aforementioned activities is based on assignments originating from the central government, which are formulated either in statutory regulations or decisions established by the central government. Letter d What is meant by "other business activities" are business activities other than Secondary Housing Financing and the implementation of special tasks from the government that are carried out in the context of supporting construction and development in the field of housing financing. Paragraph (2) It is clear enough. Paragraph (3) What is meant by "adl" is placing something in its proper place, giving something only to those entitled, and treating something according to its position. What is meant by "tawazun" includes balance in material and spiritual aspects, private and public aspects, financial and real sectors, business and social aspects, and balance in the aspects of utilization and sustainability. What is meant by "maslahah" is all forms of goodness with worldly and hereafter dimensions, material and spiritual, individual and collective, and must meet 3 (three) elements namely Sharia compliance (halal), beneficial and bringing goodness (thoyib) in all aspects overall without causing harm. What is meant by "alamiyah" is something that can be done by, with, and for all parties concerned (stakeholders) without distinguishing ethnicity, religion, race, and group, in accordance with the spirit of universal mercy (rahmatan lil alamin). What is meant by "riba" is the addition of income illegally (batil), for example in transactions exchanging goods of the same kind that are not equal in quality, quantity, and delivery time (fadhl), or in lending transactions that require the recipient of the facility to return funds received exceeding the principal loan due to the passage of time (nasi’ah). What is meant by "maisir" is a transaction that depends on an uncertain and speculative state. What is meant by "gharar" is a transaction where the object is unclear, not owned, its existence is not known, or it cannot be delivered at the time of the transaction unless otherwise regulated in Sharia. What is meant by "zalim" is a transaction that causes injustice to other parties. What is meant by "risywah" is bribery in the form of money, facilities, or other forms that violate the law as an effort to obtain facilities or ease in a transaction. What is meant by "maksiat" is human actions that violate moral laws contrary to Sharia Principles. What is meant by "objek haram" is a transaction whose object is prohibited in Sharia.

Article 9
Paragraph (1)
It is clear enough.
Paragraph (2)
What is meant by "arranger" is the party that prepares and manages the entire Securitization transaction.
What is meant by "credit enhancer" is the party that provides facilities to increase

quality and value of Financial Assets and/or securities in Securitization transactions or for the provision of loan facilities.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Article 10
Clearly stated.

Article 11
Clearly stated.

Article 12
Clearly stated.

Article 13
Paragraph (1)
Letter a
Clearly stated.

Letter b
The term "debt instruments" includes bonds and medium-term notes.

Letter c
The term "loans" includes loans from financial institutions, multilateral financial institutions, and business entities.

Letter d
Clearly stated.

Paragraph (2)
Clearly stated.

Article 14
Clearly stated.

Article 15
Clearly stated.

Article 16
Paragraph (1)
Clearly stated.

Paragraph (2)
Loans received include loans obtained from creditors, including those arising from the issuance of securities.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Article 17
Clearly stated.

Article 18
Clearly stated.

Article 19
Clearly stated.

Article 20
Clearly stated.

Article 21
Clearly stated.

Article 22
Clearly stated.

Article 23
Paragraph (1)
Clearly stated.

Paragraph (2)
The term "independent party" includes management consultants.

Article 24
Clearly stated.

Article 25
Clearly stated.

Article 26
Clearly stated.

Article 27
Clearly stated.

Article 28
Clearly stated.

Article 29
Clearly stated.

Article 30
Clearly stated.

Article 31
Clearly stated.

Article 32
Clearly stated.

Article 33
Clearly stated.

Article 34
Clearly stated.

Article 35
Clearly stated.

Article 36
Clearly stated.

Article 37
Clearly stated.

Article 38
Clearly stated.

Article 39
Clearly stated.

Article 40
Clearly stated.

Article 41
Clearly stated.

Article 42
Clearly stated.

Article 43
Clearly stated.

Article 44
Clearly stated.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6192

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 4 /POJK.05/2018
REGARDING
SECONDARY HOUSING FINANCING COMPANIES

EXAMPLE FORMAT 1 APPLICATION FOR APPROVAL OF SHARIA BUSINESS UNIT ESTABLISHMENT

LETTERHEAD OF THE COMPANY

To:
Executive Head of Insurance, Pension Funds, Financing Institutions, and Other Financial Services Supervision

Attention: Director of Institutions and IKNB Products I Director of IKNB Sharia)

Wisma Mulia 2 Building
Jl. Gatot Subroto Number 42
South Jakarta 12710

Referring to the Financial Services Authority Regulation Number /POJK.05/2018 regarding Secondary Housing Financing Companies, we hereby:

Name : .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

submit an application to obtain permission for the establishment of a Sharia business unit.

To complete the aforementioned application, we hereby submit the following documents:

A photocopy of the deed of amendment of the Articles of Association which states:
a. one of the purposes and objectives of the Company is to conduct business activities based on Sharia Principles; and b. the authority and responsibility of the Sharia Supervisory Board, accompanied by proof of approval and/or a letter of acceptance of notification from the competent authority.
A photocopy of proof of capital deposit for the Sharia business unit in the form of a time deposit in the name of the Company placed at one of the Sharia commercial banks or Sharia business units of commercial banks in Indonesia, which has been legalized by the receiving bank and is still valid during the licensing process for the establishment of the Sharia business unit.
A Board of Directors decision letter approving the placement of working capital in the Sharia business unit, accompanied by the amount of the capital placement.
Data of the Company's Sharia Supervisory Board, including:
a. photocopy of identification cards (KTP) or valid passports; b. photocopy of the Taxpayer Identification Number (NPWP);
c. curriculum vitae accompanied by the latest 4 x 6 cm color photo;
d. photocopy of the minutes of the General Meeting of Shareholders regarding the appointment of the Sharia Supervisory Board; e. recommendation letter from the National Sharia Board of the Indonesian Ulema Council; and f. a statement letter stating that there are no non-performing loans and/or financing.
Data of the Sharia business unit management, including:
a. photocopy of identification cards (KTP) or valid passports; b. photocopy of the Taxpayer Identification Number (NPWP);
c. curriculum vitae accompanied by the latest 4 x 6 cm color photo;
d. proof of appointment letter as the head of the Sharia business unit by the Company's Board of Directors; e. a statement letter stating that there are no non-performing loans and/or financing; and f. proof of expertise, training, and/or experience in the Sharia finance field.
Initial financial report of the Sharia business unit, separated from the Company's business activities.
Data of contracts for Secondary Housing Financing activities based on Sharia Principles; and
Work plan for the Sharia business unit to be opened, which must at least contain:
a. feasibility study regarding market opportunities and economic potential; b. business activity targets based on Sharia Principles and steps taken to achieve the aforementioned targets;
c. work systems and procedures based on Sharia Principles;
d. number and composition of personnel; and e. monthly cash flow projections for 12 (twelve) months starting from when the Sharia business unit commences operational activities, as well as projections of the financial position report and financial performance report.

We would like to convey that for the purposes of this application for approval of the establishment of a Sharia business unit, you may contact Mr./Ms. ..., via email ... or phone number ...

This is our application, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
....................
………………………………
*) strike out what is not necessary

EXAMPLE FORMAT 2 REPORT OF COMPANY NAME CHANGE

To:
Executive Head of IKNB Supervision

Attention: Director of Institutions and IKNB Products I

Wisma Mulia 2 Building
Jl. Gatot Subroto Number 42
South Jakarta 12710

We hereby:

Name : ...................
Address : ..........................................

report that in accordance with the General Meeting of Shareholders dated ..................., the Company's Articles of Association have been amended regarding the Company's name, as follows:

No. and Date of Business License Decision Letter	Secondary Housing Financing Company Name
Old Name	New Name

As supporting data, we hereby attach the following documents:

A photocopy of the deed of amendment of the Articles of Association accompanied by proof of approval from the competent authority, the approval of which we received on date …........…….; and
A photocopy of the Taxpayer Identification Number (NPWP) in the new name of the Company.

In light of the above, we request that Sir/Madam*) record the change of the Company's name in the Financial Services Authority's administration.

We hereby convey this and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
.....
…………………
*) Strike out what is not necessary

EXAMPLE FORMAT 3 REPORT OF CHANGE OF PURPOSE AND OBJECTIVES AND BUSINESS ACTIVITIES OF THE COMPANY

To:
Executive Head of IKNB Supervision

Attention: Director of Institutions and IKNB Products I

Wisma Mulia 2 Building
Jl. Gatot Subroto Number 42
South Jakarta 12710

We hereby:

Name : ...................
Address : ..........................................

report that in accordance with the General Meeting of Shareholders dated .................., the Company's Articles of Association have been amended regarding the purpose and objectives and business activities, as follows:

Article	Content of Article (Before Change)	Content of Article (After Change)

As supporting data, we hereby attach a photocopy of the deed of amendment of the Articles of Association accompanied by proof of approval from the competent authority, the approval of which we received on date .........

In light of the above, we request that Sir/Madam*) determine the change of the Financial Services Authority Decision regarding the business license ..........................

We hereby convey this report and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
.....
…………………
*) Strike out what is not necessary

EXAMPLE FORMAT 4 REPORT OF REDUCTION OF PAID-UP CAPITAL OF THE COMPANY

To:
Executive Head of IKNB Supervision

Attention: Director of Institutions and IKNB Products I

Wisma Mulia 2 Building
Jl. Gatot Subroto Number 42
South Jakarta 12710

We hereby:

Name : ...................
Address : ..........................................

report that in accordance with the General Meeting of Shareholders dated .................., the Company's Articles of Association have been amended regarding the reduction of paid-up capital, as follows:

Capital Before Change	After Change

with the following shareholder composition:

Shareholder Name	Total Share Value Before Change (Rp)	Total Share Value After Change (Rp)

The reason for the reduction of paid-up capital is ……………………

We hereby convey this report and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
.................
………………………………
*) Strike out what is not necessary

EXAMPLE FORMAT 5 REPORT OF ADDITION OF PAID-UP CAPITAL OF THE COMPANY

To:
Executive Head of IKNB Supervision

Attention: Director of Institutions and IKNB Products I

Wisma Mulia 2 Building
Jl. Gatot Subroto Number 42
South Jakarta 12710

We hereby:

Name : ..................
Address : .........................................

report that in accordance with the General Meeting of Shareholders dated .................., the Company's Articles of Association have been amended regarding the addition of paid-up capital, as follows:

Capital Before Change	After Change

with the following shareholder composition:

Shareholder Name	Total Share Value Before Change (Rp)	Total Share Value After Change (Rp)

As supporting data, we hereby attach:

A photocopy of the deed of amendment of the Articles of Association accompanied by proof of letter of acceptance of notification from the competent authority, the letter of acceptance of notification of which we received on date …….....…..;
A photocopy of the minutes of the General Meeting of Shareholders;
Proof of addition of paid-up capital, namely:
a. photocopy of proof of payment of paid-up capital from shareholders and photocopy of proof of placement of paid-up capital in the name of the Company at one of the commercial banks, Sharia commercial banks, or Sharia business units of commercial banks in Indonesia and legalized by the receiving bank, in the event that the addition of paid-up capital is done in cash; or b. the Company's financial report which has been audited by a public accountant registered with the Financial Services Authority before the addition of capital, in the event that the addition of paid-up capital is done in the form of conversion of retained earnings;
Business plan and steps of the Company in the use of the addition of paid-up capital.

We hereby convey this report and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
..................
………………………………
*) Strike out what is not necessary

EXAMPLE FORMAT 6 REPORT OF CHANGE OF MEMBERS OF THE BOARD OF DIRECTORS AND/OR BOARD OF COMMISSIONERS OF THE COMPANY

To:
Executive Head of IKNB Supervision

Attention: Director of Institutions and IKNB Products I

Wisma Mulia 2 Building
Jl. Gatot Subroto Number 42
South Jakarta 12710

We hereby:

Name : ..................
Address : ...........................................

report that in accordance with the General Meeting of Shareholders dated .............., the Company's Articles of Association have been amended regarding the members of the Board of Directors and/or Board of Commissioners*) namely:

Position Before Change	After Change
No. and Date of Letter of Approval of Competence and Fit and Proper Test
Board of Commissioners Members	Board of Directors Members

As supporting data, we hereby attach a photocopy of the deed of amendment of the Articles of Association accompanied by proof of letter of acceptance of notification from the competent authority, the letter of acceptance of notification of which we received on date …….....…..;

We hereby convey this report and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
..................
………………………………
*) Strike out what is not necessary

EXAMPLE FORMAT 7 REPORT OF CHANGE OF COMPOSITION OF THE SHARIA SUPERVISORY BOARD OF THE COMPANY

To:
Executive Head of IKNB Supervision

Attention: Director of Institutions and IKNB Products I Director of IKNB Sharia

Wisma Mulia 2 Building
Jl. Gatot Subroto Number 42
South Jakarta 12710

We hereby:

Name : ..................
Address : ...........................................

report that in accordance with the General Meeting of Shareholders dated .............., a change has been made regarding the composition of the Sharia Supervisory Board namely:

Before Change	After Change

As supporting data, we hereby attach:

Curriculum vitae;
Photocopy of the minutes of the General Meeting of Shareholders regarding the appointment of members of the Sharia Supervisory Board; and
Recommendation letter from the National Sharia Board of the Indonesian Ulema Council.

We hereby convey this report and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
..................
………………………………
*) Strike out what is not necessary

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

EXAMPLE FORMAT 8 REPORT OF CHANGE OF HEAD OFFICE AND/OR BRANCH OFFICE ADDRESS

To:
Executive Head of IKNB Supervision

Attention: Director of Institutions and IKNB Products I

Wisma Mulia 2 Building
Jl. Gatot Subroto Number 42
South Jakarta 12710

We hereby report that our Head Office/Branch*) located at .....
has been moved with the following data:

Old Address : .....
Telephone : .....
New Address*) : .....
Telephone : .....
Date of move : .....

As supporting data, we attach proof of ownership or control of the new office building.

We hereby convey this report and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
................
.........................

*) Strike out what is not necessary
*) Accompanied by proof of ownership or control of the office building

Determined in Jakarta on date 27 March 2018

CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY,

signed
WIMBOH SANTOSO

Financial Services Authority Regulation Number 4/POJK.05/2018 Concerning Secondary Housing Financing Companies

Lineage: Amended

Timeline