Financial Services Authority Regulation Number 42/POJK.03/2019 Concerning Credit Information Management Institutions

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 42 /POJK.03/2019
CONCERNING
CREDIT INFORMATION MANAGEMENT INSTITUTIONS
BY THE GRACE OF GOD THE ALMIGHTY,
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that the function, duties, and authority for regulation and supervision of financial services activities in the banking sector have shifted from Bank Indonesia to the Financial Services Authority; b. that the Financial Services Authority has the authority to regulate and develop inter-bank information systems as well as those of other institutions in the financial sector, specifically to obtain and provide credit information;
c. that currently, the implementation of credit information systems carried out by the Financial Services Authority covers data on the provision of funds sourced from financial institutions and produces standard credit information;
d. that to minimize information asymmetry to support the implementation of risk management, particularly credit risk, by financial institutions, reduce the potential for adverse selection and moral hazard in the provision of funds, reduce non-performing loans, encourage the reduction of credit acquisition costs, encourage the application of risk-based pricing and reputational collateral, and increase inclusive financing access, it is necessary to expand the scope of credit data exchange and management that also sources from non-financial institutions, and to provide a variety of credit information products and services with added value; e. that to establish policies, the Financial Services Authority requires reliable, comprehensive, and integrated credit information that includes data from financial institutions and non-financial institution data; f. that to meet diverse, comprehensive, and value-added credit information needs, it is necessary to develop the management of credit information carried out by parties other than the Financial Services Authority; g. that based on the considerations as referred to in letters a through f, it is necessary to establish a Financial Services Authority Regulation concerning Credit Information Management Institutions;

Recalling:

1. Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1992 Number 31, Supplement to the State Gazette of the Republic of Indonesia Number 3472) as amended by Law Number 10 of 1998 concerning Amendments to Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1998 Number 182, Supplement to the State Gazette of the Republic of Indonesia Number 3790);

2. Law Number 21 of 2008 concerning Islamic Banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette of the Republic of Indonesia Number 4867);

3. 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:
Determining: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING CREDIT INFORMATION MANAGEMENT INSTITUTIONS.

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

1. Credit Information Management Institution, hereinafter abbreviated as LPIP, is an institution or body that collects and processes credit data and other data to generate credit information.
2. Credit Information is a product and/or service generated by LPIP in written, oral, or other methods, sourced from credit data and other data owned by LPIP.
3. Credit Data is data regarding the condition of fund provision facilities, financing from non-bank financial institutions, and/or other facilities that can be equated to them.
4. Other Data is data other than Credit Data that can be used to describe the ability of a specific party to fulfill financial obligations.
5. Debtor or Customer is any party, whether individual or legal entity, that obtains one or more fund provision facilities and/or financial obligations.
6. Fund Provision Facility is the provision of funds received by the Debtor or Customer, either in Rupiah or foreign currency, in the form of loans or financing, securities, administrative account transactions, and other forms of facilities that can be equated to them, including those based on Sharia principles as regulated in legislation.
7. Financial Institution is an institution that conducts activities in the financial sector.

CHAPTER II
BUSINESS ACTIVITIES OF CREDIT INFORMATION MANAGEMENT INSTITUTIONS
Article 2
The business activities carried out by LPIP consist of:
a. collecting Credit Data and/or Other Data; and b. processing Credit Data and/or Other Data, to generate Credit Information.

Article 3
(1) In carrying out business activities as referred to in Article 2, LPIP may generate Credit Information based on Debtor or Customer categories:
a. retail; b. commercial;
c. micro, small, and medium enterprises; and/or
d. others determined by the Financial Services Authority.
(2) The Financial Services Authority may request LPIP to generate Credit Information based on specific categories, to support the implementation of the Financial Services Authority's duties.

Article 4
Credit Information generated by LPIP as referred to in Article 2, both individual and aggregate, contains:
a. the eligibility of the Debtor or Customer to obtain Fund Provision Facilities; b. the reputation track record of the Debtor or Customer in fulfilling fund provision obligations;
c. the ability of the Debtor or Customer to fulfill fund provision obligations;
d. the character of the Debtor or Customer; and e. other information that can be used to assess the ability of the Debtor or Customer.

CHAPTER III
INSTITUTIONAL STRUCTURE OF CREDIT INFORMATION MANAGEMENT INSTITUTIONS First Section Legal Entity and Paid-up Capital
Article 5
(1) Any party conducting activities as an LPIP must obtain a business license from the Financial Services Authority.
(2) The legal form of LPIP must be a limited liability company (Perseroan Terbatas).

Article 6
(1) The paid-up capital for establishing an LPIP is set at a minimum of IDR 50,000,000,000.00 (fifty billion Rupiah).
(2) Sources of funds for LPIP ownership:
a. do not originate from loans or financing facilities from banks and/or other parties; and/or b. do not originate from and for the purpose of money laundering. (3) LPIP is required to reserve a portion of the company's profit for the improvement of technology, infrastructure, and human resources. (4) LPIP is required to meet the capital requirements as referred to in paragraph (1) and ownership fund sources as referred to in paragraph (2), while LPIP is operating.

Second Section
Shareholders
Article 7
(1) Shareholders of LPIP must be Indonesian legal entities.
(2) The Indonesian legal entity as referred to in paragraph (1) is owned by:
a. an Indonesian legal entity; or b. an Indonesian legal entity in partnership with a foreign legal entity.
(3) The foreign legal entity as referred to in paragraph (2) letter b must have experience in the Credit Information Management industry.
(4) LPIP is required to meet the legal entity form requirements as referred to in paragraph (1) and Indonesian legal entity ownership requirements as referred to in paragraph (2) and paragraph (3), while LPIP is operating.

Article 8
(1) Share ownership of LPIP by each shareholder as referred to in Article 7 paragraph (1) is at most 51% (fifty-one percent) of the paid-up capital.
(2) The maximum share ownership limit as referred to in paragraph (1) also applies to ownership based on inter-shareholder connections.
(3) In the event that the LPIP shareholder as referred to in Article 7 paragraph (1) also holds shares in another LPIP, the total share ownership across all LPIPs owned is at most 51% (fifty-one percent).

Article 9
Parties that can become shareholders of LPIP as referred to in Article 7 paragraph (1) must meet the following requirements:
a. have a commitment to comply with legislation; b. have a high commitment to the development of healthy LPIP operations; and
c. are not included in the non-performing loan list.

Third Section
Board of Directors and Board of Commissioners
Article 10
(1) The Board of Directors and Board of Commissioners of LPIP must meet the following requirements:
a. integrity, at minimum having:
1. good ethics and morals;
2. commitment to comply with legislation;
3. commitment to implement corporate governance principles;
4. commitment to the development of healthy LPIP operations; and
5. commitment to maintain the confidentiality and security of data and information;
b. competence, at minimum covering:
1. knowledge in fields relevant to the position; and
2. ability to perform strategic management in developing LPIP;
c. financial reputation, at minimum covering:
1. not included in the non-performing loan list; and
2. never declared bankrupt or declared guilty of causing a company to be declared bankrupt within 5 (five) years prior to submitting the application.
(2) At least one director must have knowledge and/or experience in the Credit Information Management industry.
(3) LPIP is required to meet the director and/or commissioner requirements as referred to in paragraph (1) and paragraph (2), while LPIP is operating.
(4) Further provisions regarding requirements as referred to in paragraph (1) and paragraph (2) are determined by the Financial Services Authority.

Article 11
(1) The number of Board of Directors members is at least 3 (three) people.
(2) At least 50% (fifty percent) of the Board of Directors members as referred to in paragraph (1) are Indonesian citizens.
(3) Board of Directors members may only hold concurrent positions as directors, members of the Board of Commissioners, or executive officials of companies, organizations, or institutions that are non-profit.

Article 12
(1) The number of Board of Commissioners members is at least 2 (two) people and at most equal to the number of Board of Directors members.
(2) At least 50% (fifty percent) of the Board of Commissioners members as referred to in paragraph (1) are Indonesian citizens.

Fourth Section
Foreign Workers
Article 13
(1) LPIP may utilize foreign workers in conducting business activities by meeting the provisions in this Financial Services Authority Regulation.
(2) LPIP may only utilize foreign workers as referred to in paragraph (1) for positions as members of the Board of Directors, members of the Board of Commissioners, experts, or consultants. (3) In utilizing experts or consultants as referred to in paragraph (2), LPIP is required to:
a. first consider the availability of local experts or consultants for the required fields and expertise; b. provide 2 (two) local experts or consultants to accompany each foreign worker; and
c. observe legislation regarding labor.
(4) The use of foreign workers must obtain approval from the Financial Services Authority.

Article 14
(1) Foreign workers as referred to in Article 13 paragraph (2) must meet the following requirements:
a. meet expertise qualifications; b. do not hold positions in Financial Institutions located in Indonesia or outside Indonesia; and
c. have knowledge of the Indonesian economy, language, and culture.
(2) Foreign workers serving as members of the Board of Directors and/or members of the Board of Commissioners, in addition to meeting the provisions as referred to in paragraph (1), are subject to the provisions as referred to in Article 10 and Article 11 paragraph (3).

Article 15
(1) The term of office for foreign workers must refer to legislation regarding labor.
(2) LPIP is required to submit plans for the use of foreign workers and any amendments to the Financial Services Authority annually.

Article 16
Further provisions regarding the procedures for the use of foreign workers are determined by the Financial Services Authority.

Fifth Section
Administrative Sanctions
Article 17
(1) LPIP that does not meet the provisions as referred to in Article 6 paragraph (3), Article 6 paragraph (4), Article 7 paragraph (4), Article 10 paragraph (3), Article 13 paragraph (3), Article 13 paragraph (4), and/or Article 15, is subject to administrative sanctions in the form of written reprimands. (2) In the event that LPIP has been subject to administrative sanctions as referred to in paragraph (1), LPIP may be subject to further administrative sanctions if violations of the provisions as referred to in Article 6 paragraph (4), Article 7 paragraph (4), and/or Article 10 paragraph (3) cause significant disruption to LPIP operations. (3) Further administrative sanctions as referred to in paragraph (2) consist of:
a. a second written reprimand, in the event that LPIP does not follow up on the written reprimand as referred to in paragraph (1) within 20 (twenty) working days from the date the written reprimand is issued; b. a third written reprimand, in the event that LPIP does not follow up on the second written reprimand as referred to in letter a within 20 (twenty) working days from the date the second written reprimand is issued; and
c. revocation of the business license, in the event that LPIP does not follow up on the third written reprimand as referred to in letter b within 20 (twenty) working days from the date the third written reprimand is issued.

CHAPTER IV
LICENSING OF CREDIT INFORMATION MANAGEMENT INSTITUTIONS
Article 18
(1) LPIP may only be established and conduct business activities with a license from the Financial Services Authority.
(2) The granting of licenses as referred to in paragraph (1) is conducted in 2 (two) stages, namely:
a. principle approval; and b. business license.

First Section
Principle Approval
Article 19
(1) Applications for principle approval as referred to in Article 18 paragraph (2) letter a are submitted in writing to the Financial Services Authority, at minimum by one of the prospective shareholders, accompanied by:
a. draft deed of establishment of the limited liability company, including draft articles of association; b. ownership data in the form of a list of prospective shareholders along with details of each share ownership;
c. list of prospective members of the Board of Directors and Board of Commissioners;
d. plans for organizational structure and human resources; e. business plan for the first 3 (three) years; f. medium and long-term strategic plans; g. draft information technology systems to be used; h. draft requirements for Credit Data from Financial Institutions to be obtained from the Financial Services Authority;
i. internal control system guidelines and guidelines regarding the implementation of corporate governance;
j. operational policies and procedures; k. proof of capital deposit of at least 30% (thirty percent) of the minimum paid-up capital as referred to in Article 6 paragraph (1), in the form of a photocopy of a deposit receipt at a bank in Indonesia and in the name of “Commissioners of the Financial Services Authority q.q. one of the prospective shareholders for the establishment of the relevant LPIP” with a note that disbursement can only be carried out after obtaining written approval from the Commissioners of the Financial Services Authority; and
l. a statement letter from the prospective LPIP shareholder, that the capital deposit as referred to in letter k:
1) does not originate from loans or financing facilities in any form from banks and/or other parties; and/or
2) does not originate from and for the purpose of money laundering.
(2) Further provisions regarding the details of application documents as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 20
(1) Approval or rejection of principle approval applications is given by the Financial Services Authority at most 60 (sixty) working days after the application documents are received completely. (2) To provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. research on the completeness and truthfulness of documents; b. analysis of matters as referred to in Article 19 paragraph (1) letters d, e, f, g, h, i, and j; and
c. interviews with prospective shareholders, prospective members of the Board of Directors, and/or prospective members of the Board of Commissioners, if necessary.
(3) In addition to the provisions as referred to in paragraph (2), prospective shareholders applying for the establishment of LPIP must present to the Financial Services Authority regarding the entire plan for establishing LPIP.

Article 21
(1) Principle approval is valid for at most 18 (eighteen) months from the date the principle approval is issued.
(2) Parties that have obtained principle approval cannot conduct business activities as an LPIP before obtaining a business license as an LPIP.
(3) If by the time limit as referred to in paragraph (1) the party that has obtained principle approval has not submitted a business license application to the Financial Services Authority, the issued principle approval becomes invalid. (4) Parties as referred to in paragraph (3) can re-apply for principle approval after 1 (one) year from the end of the time limit as referred to in paragraph (1). (5) Parties that do not obtain principle approval from the Financial Services Authority can re-apply for principle approval after 1 (one) year from the date of rejection by the Financial Services Authority.

Second Section
Business License
Article 22
(1) Applications for business licenses as referred to in Article 18 paragraph (2) letter b are submitted in writing to the Financial Services Authority by the Board of Directors of the LPIP that has obtained principle approval, accompanied by:
a. deed of establishment of the limited liability company, containing articles of association approved by the competent authority; b. list of shareholders along with details of each share ownership;
c. list of members of the Board of Directors and Board of Commissioners;
d. documents as referred to in Article 19 paragraph (1) letters d, e, f, h, i, and j, in the event of changes; e. architecture of the information technology systems to be used; f. proof of payment of minimum paid-up capital as referred to in Article 6 paragraph (1), in the form of:
1) cash funds, proven by a photocopy of a deposit receipt at a bank in Indonesia and in the name of “Commissioners of the Financial Services Authority q.q. one of the shareholders of the relevant LPIP” with a note that disbursement can only be carried out after obtaining written approval from the Commissioners of the Financial Services Authority; and/or
2) others, the amount of which is determined by LPIP based on fair value set according to market price or by an expert not affiliated with LPIP;
g. proof of operational readiness; and h. a statement letter from LPIP shareholders, that the capital deposit as referred to in letter f:
1) does not originate from loans or financing facilities in any form from banks and/or other parties; and/or
2) does not originate from and for the purpose of money laundering.
(2) Further provisions regarding the details of application documents as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 23
(1) Approval or rejection of business license applications is given by the Financial Services Authority at most 80 (eighty) working days after the application documents are received completely. (2) To provide approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. research on the completeness and truthfulness of documents; b. analysis of documents as referred to in Article 22 paragraph (1) letter d;
c. assessment of the information technology systems to be used based on the architecture as referred to in Article 22 paragraph (1) letter e; and
d. other analyses based on the Financial Services Authority's considerations.

Article 24
(1) LPIP that has obtained a business license from the Financial Services Authority must conduct business activities at the latest 60 (sixty) working days from the date the business license is issued. (2) The implementation of business activities as referred to in paragraph (1) must be reported to the Financial Services Authority by the Board of Directors at the latest 10 (ten) working days after the date of implementation of business activities. (3) If by the time limit as referred to in paragraph (1) LPIP has not conducted business activities, the issued business license becomes invalid. (4) LPIP whose business license has become invalid as referred to in paragraph (3) can re-apply for principle approval, after 1 (one) year from the end of the time limit as referred to in paragraph (1).

Article 25
LPIP that does not obtain a business license from the Financial Services Authority can re-apply for principle approval, after 1 (one) year from the date of rejection by the Financial Services Authority.

CHAPTER V
CHANGES TO PAID-UP CAPITAL, SHAREHOLDERS,
BOARD OF DIRECTORS MEMBERS, AND/OR BOARD OF
COMMISSIONERS MEMBERS
First Section
Changes to Paid-up Capital
Article 26
(1) LPIP is required to report increases in paid-up capital to the Financial Services Authority.
(2) Changes to the amount of paid-up capital as referred to in paragraph (1) must meet the share ownership limits as referred to in Article 8.
(3) Reports to the Financial Services Authority as referred to in paragraph (1) are accompanied by a statement letter from LPIP shareholders that the change in paid-up capital:
a. does not originate from loans or financing facilities from banks and/or other parties; and/or b. does not originate from and for the purpose of money laundering.

Second Section
Changes to Shareholders, Board of Directors Members, and/or Board of Commissioners Members
Article 27
(1) Changes to LPIP ownership composition that result in or do not result in replacement, reduction, and/or addition of owners must obtain approval from the Financial Services Authority. (2) Applications for approval of ownership composition changes as referred to in paragraph (1) are submitted in writing, accompanied by ownership data in the form of a list of prospective shareholders along with details of each share ownership.

Article 28
(1) In the event that LPIP will make changes to the composition of Board of Directors and/or Board of Commissioners members, prospective Board of Directors and/or Board of Commissioners members must first obtain approval from the Financial Services Authority. (2) Applications for approval as referred to in paragraph (1) are submitted by LPIP to the Financial Services Authority and must be accompanied by documents as referred to in Article 19 paragraph (1) letter c. (3) In addition to meeting the provisions in this Financial Services Authority Regulation, prospective Board of Directors and/or Board of Commissioners members as referred to in paragraph (1) must meet the requirements of legislation. (4) Approval or rejection of applications for prospective Board of Directors and/or Board of Commissioners members as referred to in paragraph (1) is given at most 30 (thirty) working days from the date all requirements are met.

(5) The approval of the Financial Services Authority as referred to in paragraph (4) shall be valid for a maximum of 60 (sixty) working days from the date of the Financial Services Authority's approval. (6) The appointment of members of the Board of Directors and/or members of the Board of Commissioners as referred to in paragraph (4) must be reported in writing by the LPIP to the Financial Services Authority no later than 10 (ten) working days from the date of the General Meeting of Shareholders.

Article 29
Candidates for members of the Board of Directors and/or members of the Board of Commissioners who have not obtained approval from the Financial Services Authority are prohibited from carrying out their duties and functions as members of the Board of Directors and/or members of the Board of Commissioners, even if they have obtained approval from the General Meeting of Shareholders.

Article 30
(1) In the event that there are members of the Board of Directors and/or members of the Board of Commissioners who will cease and/or resign, the LPIP must ensure that the requirements as referred to in Article 10, Article 11, and Article 12 remain fulfilled. (2) The dismissal and/or resignation of members of the Board of Directors and/or members of the Board of Commissioners as referred to in paragraph (1) must be reported in writing by the LPIP to the Financial Services Authority no later than 10 (ten) working days from the effective date of the dismissal and/or resignation.

Article 31
(1) In the event that the LPIP will carry out a merger, consolidation, or takeover with another LPIP, each LPIP must obtain approval from the Financial Services Authority. (2) The application to obtain approval for the merger, consolidation, or takeover as referred to in paragraph (1) is submitted in writing accompanied by data on the plan for the merger, consolidation, or takeover.

Article 32
(1) Approval or rejection of the application as referred to in Article 27 paragraph (2) or Article 28 paragraph (2) is given by the Financial Services Authority no later than 60 (sixty) working days after the complete application documents are received. (2) The LPIP must submit reports regarding:
a. changes in the amount of paid-in capital as referred to in Article 26 no later than 10 (ten) working days after the date the process of adding paid-in capital is completed; b. changes in ownership composition as referred to in Article 27 no later than 10 (ten) working days after the date the General Meeting of Shareholders is held; and
c. the implementation of merger, consolidation, or takeover as referred to in Article 31 no later than 10 (ten) working days after the effective date of the merger, consolidation, or takeover.

Article 33
The details of the procedures for changes in the amount of paid-in capital as referred to in Article 26, changes in ownership composition as referred to in Article 27, changes in the composition of members of the Board of Directors and/or Board of Commissioners as referred to in Article 28, and/or the implementation of merger, consolidation, or takeover as referred to in Article 31 are determined by the Financial Services Authority.

Third Section
Administrative Sanctions

Article 34
An LPIP that does not fulfill the provisions as referred to in Article 27 paragraph (1), Article 27 paragraph (2), Article 28 paragraph (1), Article 28 paragraph (3), Article 28 paragraph (6), Article 29, Article 30, Article 31 paragraph (1), and/or Article 32 paragraph (2) is subject to administrative sanctions in the form of a written warning.

CHAPTER VI
RIGHTS AND OBLIGATIONS OF LPIP

Article 35
(1) An LPIP that has obtained a license as referred to in Article 18 may collect and process Credit Data and Other Data.
(2) The Credit Data and Other Data collected and processed by the LPIP as referred to in paragraph (1) may only be used to generate Credit Information.

Article 36
(1) The LPIP must:
a. maintain the accuracy, timeliness, security, and confidentiality of data; b. have a reliable system;
c. have operational policies and procedures set out in written guidelines; and
d. have guidelines that must be complied with by every party using Credit Information.
(2) An LPIP that does not fulfill the provisions as referred to in paragraph (1) is subject to administrative sanctions in the form of a written warning.

Article 37
The operational policies and procedures as referred to in Article 36 paragraph (1) letter c must contain at least:
a. data security activity steps; b. access levels;
c. data change procedures;
d. information security; e. business continuity plan; f. end-user computing; g. disaster recovery plan; h. monitoring of operations including audit trails;
i. procedures for providing Credit Information; and
j. procedures for handling and resolving complaints.

CHAPTER VII
DATA MANAGEMENT BY LPIP
First Section
Data Sources and Flow

Article 38
(1) In carrying out data collection and processing activities as referred to in Article 2, the LPIP obtains Credit Data from the Financial Services Authority. (2) The Credit Data from the Financial Services Authority as referred to in paragraph (1) is data that is presented and reported to the Financial Services Authority by Financial Institutions as reporters as referred to in the Financial Services Authority Regulation regarding the reporting of Credit Data. (3) Further provisions regarding the mechanism for obtaining Credit Data as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 39
(1) To broaden and enrich the scope of Credit Data and Other Data, the LPIP may cooperate with:
a. Financial Institutions for Credit Data; and/or b. Financial Institutions and/or non-Financial Institutions for Other Data.
(2) The LPIP may obtain data as referred to in paragraph (1) directly based on agreements and/or legislation.

Article 40
(1) The acquisition of Credit Data by the LPIP from the Financial Services Authority as referred to in Article 38 paragraph (1) is subject to data acquisition costs. (2) Further provisions regarding the calculation of costs as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 41
(1) In carrying out its duties, the Financial Services Authority may request data obtained by the LPIP directly as referred to in Article 39.
(2) Further provisions regarding the data request mechanism as referred to in paragraph (1) are determined by the Financial Services Authority.

Second Section
Data Management

Article 42
The LPIP must make efforts to ensure that the utilization of Credit Data and Other Data as referred to in Article 39 has been informed by the data source to the relevant Debtor or Customer.

Article 43
(1) The management of Credit Data and Other Data by the LPIP covers activities but is not limited to data collection, processing, and distribution.
(2) For data management as referred to in paragraph (1), the LPIP must refer to legislation regarding electronic information and transactions.
(3) For data management as referred to in paragraph (1), the LPIP must take security steps to maintain the accuracy, timeliness, security, and confidentiality of data.

Article 44
(1) In carrying out the management of Credit Data and Other Data, the LPIP is prohibited from:
a. intentionally changing Credit Data and/or Other Data obtained by the LPIP from the Financial Services Authority, Financial Institutions, and/or non-Financial Institutions as referred to in Article 38 and Article 39; and/or b. transferring, copying, and/or making Credit Data and Other Data accessible to other parties or by other parties, within or outside the territory of the Republic of Indonesia. (2) The provisions as referred to in paragraph (1) letter a do not apply to the LPIP in the event that:
a. Financial Institutions and non-Financial Institutions that provide Credit Data and/or Other Data directly to the LPIP are unable to update data; and/or b. the LPIP implements a court decision that has acquired permanent legal force. (3) The provisions as referred to in paragraph (1) letter b do not apply to the LPIP that transfers Credit Data and/or Other Data to another LPIP within the territory of the Republic of Indonesia, based on an agreement as referred to in Article 39 and has obtained approval from Financial Institutions and non-Financial Institutions. (4) The LPIP updates data as referred to in paragraph (2) letter a in the event that:
a. Financial Institutions and/or non-Financial Institutions have their business licenses revoked; or b. technically, Financial Institutions and/or non-Financial Institutions are unable to update data due to other reasons. (5) Data updates by the LPIP as referred to in paragraph (4) are carried out based on a written request from:
a. the party appointed to resolve the obligations of Financial Institutions and/or non-Financial Institutions, in the event that Financial Institutions and/or non-Financial Institutions have their business licenses revoked; or b. Financial Institutions, non-Financial Institutions, the relevant Debtor or Customer, in the event that Financial Institutions and/or non-Financial Institutions are technically unable to update data due to other reasons.

Article 45
To maintain the accuracy, timeliness, security, and confidentiality of data as referred to in Article 36 paragraph (1) letter a, the LPIP must place servers and databases within the territory of the Republic of Indonesia.

Article 46
(1) The LPIP may use the services of other parties to support the implementation of the LPIP's operational activities.
(2) The LPIP must ensure that other parties as referred to in paragraph (1) apply data management and Credit Information principles as regulated in this Financial Services Authority Regulation and its implementing provisions.

Third Section
Administrative Sanctions

Article 47
(1) An LPIP that does not fulfill the provisions as referred to in Article 42, Article 43 paragraph (2), Article 44 paragraph (1), Article 45, and/or Article 46 paragraph (2) is subject to administrative sanctions in the form of a written warning. (2) An LPIP that does not fulfill the provisions as referred to in Article 43 paragraph (3) is subject to administrative sanctions in the form of a written warning and a fine of IDR 250,000.00 (two hundred fifty thousand rupiah) per Debtor or Customer, with a maximum total of IDR 100,000,000.00 (one hundred million rupiah). (3) In addition to being subject to administrative sanctions as referred to in paragraph (2), an LPIP that does not fulfill the provisions of Article 43 paragraph (3) may be subject to sanctions in the form of the cessation of inaccurate Credit Information services for a period determined by the Financial Services Authority. (4) In the event that an LPIP has been subject to administrative sanctions as referred to in paragraph (1), the LPIP may be subject to further administrative sanctions if violations of the provisions as referred to in Article 44 paragraph (1) and/or Article 45 cause losses to the public and/or state interests. (5) Further administrative sanctions as referred to in paragraph (4) consist of:
a. a second written warning, in the event that the LPIP does not follow up on the written warning as referred to in paragraph (1) within 20 (twenty) working days from the date the written warning is issued; b. a third written warning, in the event that the LPIP does not follow up on the second written warning as referred to in letter a within 20 (twenty) working days from the date the second written warning is issued; and
c. revocation of the business license, in the event that the LPIP does not follow up on the third written warning as referred to in letter b within 20 (twenty) working days from the date the third written warning is issued.

CHAPTER VIII
CREDIT INFORMATION
First Section
Credit Information

Article 48
(1) The LPIP must generate Credit Information that has added value.
(2) Credit Information with added value as referred to in paragraph (1) is information generated from the processing of Credit Data and/or Other Data by the LPIP other than standard information.

Article 49
Credit Information as referred to in Article 48 is prohibited from containing data that:
a. is in the process of a complaint or clarification of accuracy; b. has an unknown source;
c. has unclear identity;
d. contains elements of ethnicity, religion, race, and inter-group relations; and e. is declared confidential based on other legislation.

Article 50
(1) The period of Credit Data processed by the LPIP to generate Credit Information as referred to in Article 48 is regulated as follows:
d. Credit Data as referred to in Article 38 paragraph (1), for at least the last 2 (two) years calculated from the date of the latest condition; and e. specifically, Credit Data regarding arrears of Fund Provision Facilities, is still processed by the LPIP until the Fund Provision is paid off, or written off by the Financial Institution. (2) Credit Information as referred to in paragraph (1) must include:
a. data on the number of requests for Credit Information in the name of a specific Debtor or Customer, for at least the last 1 (one) year calculated from the date of the latest condition; and b. data regarding Credit Information in the name of a specific Debtor or Customer that is the object of a complaint, for at least 1 (one) year from the date the complaint is resolved. (3) The period for data that can be presented in Credit Information other than the provisions regulated in paragraph (1) and paragraph (2) is determined by the LPIP.

Article 51
The schedule for retaining all data managed by the LPIP must refer to legislation governing corporate documents.

Article 52
(1) The LPIP must provide Credit Information in the Indonesian language.
(2) In the event that it is needed, the LPIP may provide Credit Information in other languages while still observing the provisions as referred to in paragraph (1).

Second Section
Provision of Credit Information

Article 53
Credit Information may only be obtained by parties:
a. Financial Institutions that are members of the LPIP; b. non-Financial Institutions as referred to in Article 39 paragraph (1) letter b that are data sources of the relevant LPIP;
c. other LPIPs;
d. Debtors or Customers; and/or e. other parties.

Article 54
Parties as referred to in Article 53 letter a, letter b, letter c, and letter d obtain Credit Information according to the procedures required by the LPIP and/or based on agreements between the parties.

Article 55
(1) Other parties as referred to in Article 53 letter e may obtain Credit Information to carry out functions and duties as referred to in legislation.
(2) Applications for Credit Information as referred to in paragraph (1) are submitted in writing by stating the purpose and objective of the Credit Information request and the name of the competent official.

Article 56
The LPIP must administer all requests for Credit Information as referred to in Article 48.

Article 57
Financial Institutions as referred to in Article 53 letter a may only use Credit Information in the form of standard information and/or information with added value as referred to in Article 48 to support the needs of the relevant Financial Institution for:
a. the smoothness of the fund provision process to assess the financial condition of debtors or prospective debtors of the Financial Institution; b. the application of risk management to support the operational activities of the Financial Institution; and/or
c. compliance with legislation.

Article 58
The provision of Credit Information by the LPIP to non-Financial Institutions as referred to in Article 53 letter b may only be given for:
a. facilitating and securing the operational activities of non-Financial Institutions; and/or b. compliance with legislation.

Article 59
The provision of Credit Information to other LPIPs as referred to in Article 53 letter c may only be carried out for the implementation of business activities of the LPIP as referred to in Article 2.

Article 60
The provision of Credit Information by the LPIP to Debtors or Customers as referred to in Article 53 letter d is limited to Credit Information in the name of the relevant Debtor or Customer.

Article 61
(1) The LPIP may charge fees for the provision of Credit Information to parties as referred to in Article 53.
(2) The provisions as referred to in paragraph (1) do not apply in the event that the request for Credit Information is submitted:
a. to verify a complaint by a Debtor or Customer regarding data errors in Credit Information that has been corrected; b. to implement a court order; and/or
c. by other parties as referred to in Article 53 letter e.
(3) Debtors or Customers may obtain Credit Information without being charged a fee by the LPIP once within a period of 12 (twelve) months.

Third Section
Administrative Sanctions

Article 62
(1) An LPIP that does not fulfill the provisions as referred to in Article 48 paragraph (1), Article 49, Article 50 paragraph (2), Article 51, Article 52 paragraph (1), Article 56, Article 58, Article 59, and/or Article 60 is subject to administrative sanctions in the form of a written warning. (2) An LPIP that based on the results of the Financial Services Authority's examination does not fulfill the provisions as referred to in Article 53 is subject to administrative sanctions in the form of a written warning and a fine of IDR 50,000,000.00 (fifty million rupiah) per Credit Information, with a maximum total fine of IDR 1,000,000,000.00 (one billion rupiah).

CHAPTER IX
HANDLING AND RESOLVING COMPLAINTS

Article 63
(1) The LPIP must follow up on complaints submitted by any party regarding the inaccuracy of data in Credit Information generated by the LPIP.
(2) In following up on complaints as referred to in paragraph (1), the LPIP conducts research on the issues complained about based on documents and/or data owned by the LPIP. (3) To conduct research as referred to in paragraph (2), the LPIP may coordinate with parties that provide Credit Data or Other Data to the LPIP.

Article 64
(1) In the event that based on the results of research and coordination as referred to in Article 63 paragraph (2) and paragraph (3), a complaint by a Debtor or Customer is caused by the inaccuracy of the processed results of Credit Data and/or Other Data by the LPIP, the LPIP must follow up by making corrections. (2) In the event that based on the results of research and coordination as referred to in Article 63 paragraph (2) and paragraph (3), a complaint by a Debtor or Customer is caused by the inaccuracy of Credit Data or Other Data from:
a. Financial Institutions that are members of the LPIP, and/or non-Financial Institutions as referred to in Article 39 paragraph (1) letter b, the LPIP forwards the complaint by the Debtor or Customer directly to the relevant Financial Institution and/or non-Financial Institution, with a copy to the Financial Services Authority; or b. Financial Institutions that are not members of the LPIP, the LPIP forwards the complaint by the Debtor or Customer to the Financial Services Authority. (3) To resolve complaints as referred to in Article 63 paragraph (1), the LPIP must have written policies and procedures containing at least:
a. complaint reception; b. complaint handling and resolution;
c. monitoring of complaint handling and resolution; and
d. organizational devices handling complaints.

Article 65
(1) The LPIP must resolve complaints by Debtors or Customers as referred to in Article 63 paragraph (1) that are caused by the inaccuracy of the processed results of Credit Data and/or Other Data by the LPIP no later than 20 (twenty) working days from the date the complaint is received. (2) In the event that the complaint cannot be resolved within the time period as referred to in paragraph (1), the LPIP may request the Debtor or Customer to extend the complaint resolution deadline by a maximum of 20 (twenty) working days. (3) The LPIP must inform the deadline for complaint resolution as referred to in paragraph (1) and paragraph (2) to the party submitting the complaint. (4) In the event that the LPIP has resolved the complaint by a Debtor or Customer, the LPIP informs the results of the complaint resolution to the Debtor or Customer in writing and/or using information technology media according to the request of the Debtor or Customer.

Article 66
(1) The LPIP must mark data in Credit Information that is in the process of a complaint until the entire complaint process is completed.
(2) The LPIP must administer all complaints received.

Article 67
(1) An LPIP that does not fulfill the provisions as referred to in Article 63 paragraph (1), Article 64 paragraph (1), Article 64 paragraph (3), Article 65 paragraph (3), and/or Article 66 is subject to administrative sanctions in the form of a written warning. (2) An LPIP that does not fulfill the provisions as referred to in Article 65 paragraph (1) and Article 65 paragraph (2) is subject to administrative sanctions in the form of a written warning and a fine of IDR 250,000.00 (two hundred fifty thousand rupiah) per complaint.

CHAPTER X
SUPERVISION

Article 68
(1) The Financial Services Authority conducts supervision over the LPIP.
(2) Supervision as referred to in paragraph (1) is conducted by the Financial Services Authority directly and/or indirectly.

Article 69
(1) For direct supervision as referred to in Article 68 paragraph (2), the Financial Services Authority conducts periodic examinations and at any time when necessary. (2) Periodic examinations as referred to in paragraph (1) are conducted at least once every 1 (one) year.

Article 70
(1) The scope of examinations as referred to in Article 69 covers the technology used, governance of compliance with legislation, data security, and complaint handling, and other matters deemed necessary by the Financial Services Authority. (2) For specific scopes, examinations as referred to in Article 69 paragraph (1) may be conducted by other parties appointed by the Financial Services Authority. (3) Further provisions regarding the requirements for other parties to conduct examinations as referred to in paragraph (2) are determined by the Financial Services Authority.

Article 71
The LPIP must provide the Financial Services Authority with explanations and data requested, the opportunity to view all account books, documents, physical facilities related to business activities, and other matters required.

Article 72
For indirect supervision as referred to in Article 68 paragraph (2), the LPIP must submit written reports in the form of:
a. monthly reports; b. semi-annual reports;
c. annual reports;
d. annual business plans; and e. other incidental reports.

Article 73
(1) Monthly reports as referred to in Article 72 letter a contain statistics of data recorded at the LPIP, consisting of at least:
a. data on total Debtors or Customers; b. data on total Fund Provision Facilities;
c. data on the number of Financial Institutions that are members of the LPIP and non-Financial Institutions that are data sources;
d. data on the number of requests for Credit Information; and e. data on the handling of complaints by Debtors or Customers.
(2) Monthly reports as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 5 (five) working days after the end of the relevant reporting month. (3) The LPIP is considered late in submitting monthly reports if the submission of monthly reports exceeds the time limit as referred to in

paragraph (2) until the end of the month following the relevant reporting month.
(4) The LPIP is deemed to have failed to submit monthly reports if the report referred to in paragraph (1) has not been submitted by the LPIP until the end of the time limit referred to in paragraph (3).

Article 74
(1) Semesterly reports as referred to in Article 72 letter b contain the financial reports of the LPIP.
(2) Semesterly reports as referred to in paragraph (1) must be submitted at the latest 1 (one) month after the end of the relevant reporting period.
(3) The LPIP is deemed to have submitted semesterly reports late if the submission of semesterly reports exceeds the time limit referred to in paragraph (2) but has not yet exceeded 1 (one) month since the end of the submission deadline for reports. (4) The LPIP is deemed to have failed to submit semesterly reports if the report referred to in paragraph (1) has not been submitted by the LPIP until the end of the time limit referred to in paragraph (3).

Article 75
(1) Annual reports as referred to in Article 72 letter c contain at least:
a. general information including management, ownership, development of the LPIP's business, and management reports; b. annual financial reports including balance sheets, income statements, statements of changes in equity, and cash flow statements;
c. opinions from public accountants; and
d. other disclosure aspects required in financial accounting standards.

(2) Annual reports as referred to in paragraph (1) must be audited by public accountants.
(3) Annual reports as referred to in paragraph (1) must be submitted at the latest on May 31 of the following year.
(4) The LPIP is deemed to have submitted annual reports late if the submission of annual reports exceeds the time limit referred to in paragraph (3) but has not yet exceeded 1 (one) month since the end of the submission deadline for annual reports. (5) The LPIP is deemed to have failed to submit annual reports if the report referred to in paragraph (1) has not been submitted by the LPIP until the end of the time limit referred to in paragraph (4).

Article 76
(1) Annual business plans as referred to in Article 72 letter d contain at least:
a. management policies and strategies; b. projected financial reports along with the assumptions used;
c. capital plans;
d. plans for the development of information system technology; and e. plans for the issuance of products and/or implementation of new activities.
(2) The LPIP must submit the annual business plan as referred to in paragraph (1) to the Financial Services Authority at the latest by the end of November before the year the annual business plan starts. (3) The LPIP is deemed to have submitted the annual business plan late if the submission of the annual business plan exceeds the time limit referred to in paragraph (2) but has not yet exceeded 1 (one) month since the end of the submission deadline for the annual business plan.

(4) The LPIP is deemed to have failed to submit the annual business plan if the annual business plan as referred to in paragraph (1) has not been submitted by the LPIP until the end of the time limit referred to in paragraph (3).

Article 77
(1) LPIPs that do not comply with the provisions as referred to in Article 71, Article 72, Article 73 paragraph (2), Article 74 paragraph (2), Article 75 paragraph (2), Article 75 paragraph (3), and/or Article 76 paragraph (2) are subject to administrative sanctions in the form of written warnings. (2) LPIPs that comply with the provisions as referred to in:
a. Article 73 paragraph (3) are subject to administrative sanctions in the form of fines of Rp100,000.00 (one hundred thousand rupiah) per working day of delay; b. Article 73 paragraph (4) are subject to administrative sanctions in the form of fines of Rp5,000,000.00 (five million rupiah) per report;
c. Article 74 paragraph (3), Article 75 paragraph (4), and/or Article 76 paragraph (3) are subject to administrative sanctions in the form of fines of Rp1,000,000.00 (one million rupiah) per working day of delay; and/or
d. Article 74 paragraph (4), Article 75 paragraph (5), and/or Article 76 paragraph (4) are subject to administrative sanctions in the form of fines of Rp50,000,000.00 (fifty million rupiah) per report. (3) LPIPs that have been subject to administrative sanctions as referred to in paragraph (2) letters b and/or d must still submit the relevant reports to the Financial Services Authority.

CHAPTER XI
CESSATION AND REVOCATION OF BUSINESS LICENSES

Article 78
(1) LPIPs that intend to cease business activities must submit a written application for cessation of business activities to the Financial Services Authority, attached with:
a. minutes of the General Meeting of Shareholders regarding the plan to cease the LPIP's business activities; b. reasons for cessation;
c. plans to settle all obligations;
d. the latest financial reports; and e. proof of tax settlement based on the results of the tax service office examination for the last 3 (three) years before the date of the application. (2) Based on the application as referred to in paragraph (1), the Financial Services Authority issues a letter of cessation of the LPIP's business activities, and the LPIP must:
a. cease all of the LPIP's business activities; b. announce the plan to dissolve the LPIP limited liability company and the plan to settle the LPIP's obligations in 2 (two) daily newspapers with wide circulation at the latest 10 (ten) working days since the date of issuance of the cessation of business activities letter;
c. immediately settle all of the LPIP's obligations; and
d. appoint a public accounting firm to verify the settlement of the LPIP's obligations.

Article 79
(1) If all of the LPIP's obligations as referred to in Article 78 paragraph (2) letter c have been settled, the LPIP must apply for revocation of the LPIP's business license to the Financial Services Authority, accompanied by a report containing at least:
a. implementation of the cessation of business activities; b. implementation of the announcement as referred to in Article 78 paragraph (2) letter b;
c. implementation of the settlement of the LPIP's obligations;
d. verification results report from the public accounting firm regarding the settlement of the LPIP's obligations; and e. a statement letter from shareholders that the steps to settle the LPIP's obligations have been completed and that if there are claims in the future, they will be the responsibility of the shareholders. (2) Based on the application for revocation of the business license as referred to in paragraph (1), the Financial Services Authority issues a decision letter on the revocation of the LPIP's business license and requests the LPIP to dissolve the limited liability company in accordance with applicable laws and regulations. (3) Since the date the decision letter on the revocation of the business license is issued, if there are still obligations that have not been settled in the future, all obligations become the responsibility of the LPIP's shareholders.

Article 80
The Financial Services Authority has the authority to revoke the business license that has been granted as referred to in Article 18 paragraph (2) letter b by issuing a decision letter, in the event:
a. the LPIP violates provisions in this Financial Services Authority Regulation with sanctions in the form of revocation of the business license; and/or b. there is a court decision that has acquired permanent legal force.

Article 81
Further provisions regarding the procedures for revocation of the business license as referred to in Article 78, Article 79, and Article 80 are determined by the Financial Services Authority.

Article 82
LPIPs that do not comply with the provisions as referred to in Article 78 paragraph (1) and/or Article 79 paragraph (1) are subject to administrative sanctions in the form of written warnings.

CHAPTER XII
CLOSING PROVISIONS

Article 83
Further provisions regarding the ownership of LPIPs, guidelines for the use of Credit Information, operational policies and procedures, acquisition of Credit Information, handling and settlement of complaints, and/or preparation and submission of written reports are determined by the Financial Services Authority.

Article 84
At the time this Financial Services Authority Regulation comes into force:
a. Bank Indonesia Regulation Number 15/1/PBI/2013 concerning Credit Information Management Institutions (State Gazette of the Republic of Indonesia Year 2013 Number 36, Supplement to the State Gazette of the Republic of Indonesia Number 5402) is revoked and declared invalid; and b. Implementation provisions of Bank Indonesia Regulation Number 15/1/PBI/2013 concerning Credit Information Management Institutions (State Gazette of the Republic of Indonesia Year 2013 Number 36, Supplement to the State Gazette of the Republic of Indonesia Number 5402) remain in force insofar as they do not conflict with this Financial Services Authority Regulation.

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

Article 85
This Financial Services Authority Regulation comes into force on the date of its promulgation.
To ensure that everyone knows it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Determined in Jakarta on December 26, 2019
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Promulgated in Jakarta on December 31, 2019
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2019 NUMBER 261

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 42 /POJK.03/2019
CONCERNING
CREDIT INFORMATION MANAGEMENT INSTITUTIONS

I. GENERAL
In accordance with the Law concerning the Financial Services Authority, the Financial Services Authority has the authority to regulate and develop the implementation of the inter-bank information system, which can be expanded by including other institutions in the financial sector. So far, the Financial Services Authority has collected, processed, managed, and distributed Credit Information generated by the Financial Information Service System, to support the implementation of the Financial Services Authority's tasks and the provision of funds to the community by Financial Institutions.

In its development, the need for Financial Institutions to manage risks better, minimize adverse selection and moral hazard in the provision of funds, increase access to the provision of funds to the community through accelerating the process of acquiring the provision of funds, and implement risk-based pricing and reputational collateral, demands the need for the development of more reliable, comprehensive, and integrated credit data management with a variety of more advanced and value-added Credit Information products and services. In addition, leaps in information technology progress and increased public awareness of the importance of Credit Information drive the need to improve the quality of Credit Information management.

Furthermore, the increasing need for more comprehensive data sourced from Financial Institutions and non-Financial Institutions requires the implementation of more comprehensive and well-managed Credit Information management by the Financial Services Authority and LPIPs with the approval of the Financial Services Authority. The existence of LPIPs is expected to become financial system infrastructure that will drive the creation of financial system stability. On the other hand, the existence of LPIPs is intended to support business activities conducted by non-Financial Institutions, particularly regarding the fulfillment of financial obligations of non-Financial Institution customers. Ultimately, the existence of LPIPs is expected to support efforts to increase national economic growth. Furthermore, considering the strategic role of LPIPs in the credit information system in Indonesia, the management of Credit Information by LPIPs needs to be supported by efforts:
a. Credit Information management is conducted by parties who have integrity, expertise, and good capabilities from both financial and technical sides, to support business continuity; and b. effective supervision of Credit Information management and the integrity of Credit Information, to ensure that LPIP operations are carried out in accordance with applicable laws and regulations and in accordance with the purpose of the existence of LPIPs.

Considering that since December 31, 2013, the functions, duties, and authorities for regulating and supervising financial services activities in the banking sector have shifted from Bank Indonesia to the Financial Services Authority, regulations regarding LPIPs need to be regulated again in a Financial Services Authority Regulation.

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

Article 2
It is clear enough.

Article 3
Paragraph (1)
Letter a
LPIPs with retail business category manage and provide Credit Information regarding Individual Debtors or Customers.
Letter b
LPIPs with commercial business category manage and provide Credit Information regarding Corporate Debtors or Customers.
Letter c
LPIPs with micro, small, and medium enterprise business category manage and provide Credit Information regarding Micro, Small, and Medium Enterprise Debtors or Customers. Letter d It is clear enough. Paragraph (2) The Financial Services Authority's consideration in requesting LPIPs to generate Credit Information based on certain categories, for example, to increase financing access especially for micro, small, and medium enterprises, the Financial Services Authority deems it necessary to have LPIPs that generate Credit Information with micro, small, and medium enterprise business categories.

Article 4
It is clear enough.

Article 5
It is clear enough.

Article 6
It is clear enough.

Article 7
It is clear enough.

Article 8
Paragraph (1)
It is clear enough.
Paragraph (2)
Ownership based on inter-shareholder linkages is based on among others:
a. ownership relationships; and/or b. the existence of cooperation or aligned actions to achieve common goals in controlling the LPIP with or without written agreements so that together they have option rights or other rights to own LPIP shares. Paragraph (3) It is clear enough.

Article 9
It is clear enough.

Article 10
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
Determination by the Financial Services Authority in the form of a Financial Services Authority Circular Letter.

Article 11
It is clear enough.

Article 12
It is clear enough.

Article 13
Paragraph (1)
It is clear enough.
Paragraph (2)
Experts or consultants are individuals who have specific technical knowledge with adequate qualification standards for expertise.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.

Article 14
Paragraph (1)
Letter a
Expertise qualifications are the fulfillment of requirements for expertise in a specific field obtained from education and work experience.
Letter b
Financial Institutions include:

1. Financial Service Institutions as referred to in the Law concerning the Financial Services Authority;
2. Cooperatives as referred to in the Law concerning Cooperatives; and
3. Other institutions or companies that provide Credit Facilities or that can be equated with it.
   Letter c
   It is clear enough.
   Paragraph (2)
   It is clear enough.

Article 15
It is clear enough.

Article 16
Determination by the Financial Services Authority in the form of a Financial Services Authority Circular Letter.

Article 17
Paragraph (1)
It is clear enough.
Paragraph (2)
Examples of causing significant disruption to LPIP operations include the LPIP being unable to maintain the security of Credit Data and/or Other Data managed by the LPIP. Paragraph (3) It is clear enough.

Article 18
It is clear enough.

Article 19
Paragraph (1)
It is clear enough.
Paragraph (2)
Determination by the Financial Services Authority in the form of a Financial Services Authority Circular Letter.

Article 20
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
Given that prospective shareholders of the LPIP are legal entities, the parties interviewed are one of the board of directors members and one of the board of commissioners members from the legal entity. Paragraph (3) It is clear enough.

Article 21
It is clear enough.

Article 22
Paragraph (1)
It is clear enough.
Paragraph (2)
Determination by the Financial Services Authority in the form of a Financial Services Authority Circular Letter.

Article 23
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
In assessing information technology systems, the Financial Services Authority can conduct direct examinations at the LPIP's office and/or can assign third parties to conduct such examinations. Letter d It is clear enough.

Article 24
It is clear enough.

Article 25
It is clear enough.

Article 26
It is clear enough.

Article 27
It is clear enough.

Article 28
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
Legislation includes among others the Law concerning Limited Liability Companies.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.

Article 29
It is clear enough.

Article 30
It is clear enough.

Article 31
It is clear enough.

Article 32
It is clear enough.

Article 33
Determination by the Financial Services Authority in the form of a Financial Services Authority Circular Letter.

Article 34
It is clear enough.

Article 35
It is clear enough.

Article 36
It is clear enough.

Article 37
It is clear enough.

Article 38
Paragraph (1)
It is clear enough.
Paragraph (2)
Financial Services Authority Regulations regarding Credit Data reporting include among others Financial Services Authority Regulations regarding reporting and requesting debtor information through the financial information service system. Paragraph (3) Determination by the Financial Services Authority in the form of a Financial Services Authority Circular Letter.

Article 39
Paragraph (1)
Letter a
The purpose of cooperation is to enrich the LPIP's data sources, which is done through cooperation agreements between the LPIP and the data owners.
Credit Data requested by the LPIP directly from Financial Institutions is not data originating from the Financial Services Authority as referred to in Article 38 paragraph (1), including among others data on the number of dependents. This is intended to avoid the possibility of duplication of Credit Data acquisition by the LPIP sourced from the Financial Services Authority and/or Financial Institutions, so that the quality of debtor data to support the provision of Credit Information from the LPIP remains maintained. Letter b Non-Financial Institutions include public utility institutions (among others electricity companies, water supply companies, telecommunications companies), debt collection service companies, and other institutions. Other Data includes among others electricity bill data, telephone payment data, and water bill payment data. Paragraph (2) Legislation includes among others the Law concerning Consumer Protection and the Law concerning Public Information Openness.

Article 40
Paragraph (1)
It is clear enough.
Paragraph (2)
Determination by the Financial Services Authority in the form of a Financial Services Authority Circular Letter.

Article 41
Paragraph (1)
Data requests by the Financial Services Authority can be conducted at any time and/or periodically according to needs.
Paragraph (2)
Determination by the Financial Services Authority in the form of a Financial Services Authority Circular Letter.

Article 42
It is clear enough.

Article 43
It is clear enough.

Article 44
Paragraph (1)
Letter a
Examples of changing data:
Credit quality data belonging to debtor "A" received by the LPIP from the Financial Services Authority is 2 (in special attention), changed by the LPIP to 1 (performing). Letter b Transferring Credit Data and/or Other Data includes among others activities of transferring Credit Data and/or Other Data using information technology. Paragraph (2) It is clear enough. Paragraph (3) It is clear enough. Paragraph (4) It is clear enough. Paragraph (5) Letter a Parties appointed to settle obligations include among others liquidators for Financial Institutions whose business licenses are revoked. Letter b It is clear enough.

Article 45
It is clear enough.

Article 46
Paragraph (1)
Using the services of others includes among others the use of external parties to the Financial Services Authority to carry out reliability testing of systems and data management security, helpdesk services, or Debtor or Customer complaint services. Paragraph (2) It is clear enough.

Article 47
Paragraph (1)
It is clear enough.
Paragraph (2)
Example:
Based on supervision conducted by the Financial Services Authority, the LPIP is known to cause inaccuracy of Credit Information belonging to 10 (ten) Debtors or Customers. For this violation, the LPIP is subject to a fine sanction of Rp250,000.00 x 10 or a total of Rp2,500,000.00. Based on supervision conducted by the Financial Services Authority, the LPIP is known to use an inappropriate scoring method causing inaccuracy of Credit Information for all Debtors or Customers recorded in the LPIP's database, namely 50,000,000 Debtors or Customers. For this violation, the LPIP is subject to a fine sanction with the maximum amount, namely Rp100,000,000.00. Paragraph (3) It is clear enough. Paragraph (4) Losses to the general public and/or national interests include among others:

1. The LPIP uses an inappropriate scoring model so that the credit scores generated by the LPIP are misleading and endanger financial system stability; or
2. The LPIP transfers Credit Data and/or Other Data to other parties that have the potential to cause economic, social, political, and national security disruptions.
   Paragraph (5)
   It is clear enough.

Article 48
Paragraph (1)
It is clear enough.
Paragraph (2)
Standard Information is Credit Information containing at least:
a. debtor identity; b. management identity for corporate debtors;
c. Credit Facilities;
d. collateral and/or guarantors; e. financial reports; f. creditor identity; g. notes from information users of the debtor; and h. information regarding ongoing complaints against Debtor Information. Included in information with added value are among others information in the form of credit scores, fraud warnings, mapping of Debtor or Customer profiles, as well as monitoring and evaluation of Debtors or Customers.

Article 49
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
Declared confidential based on legislation including among others community deposit data at Financial Institutions.

Article 50
It is clear enough.

Article 51
It is clear enough.

Article 52
It is clear enough.

Article 53
Acquisition of Credit Information by Financial Institutions, non-Financial Institutions, and other LPIPs is conducted based on agreements with the LPIP.

Article 54
Procedures required by the LPIP include among others provisions regarding risk mitigation, for example, ensuring that the Debtor or Customer requesting Credit Information is the actual Debtor or Customer accompanied by supporting documents.

Article 55
Paragraph (1)
Other parties include among others law enforcement agencies and public institutions for the implementation of duties.
To carry out functions and duties as referred to in legislation including among others:
a. carrying out investigation, investigation, or proof processes by law enforcement officials; or b. carrying out court decisions that have acquired permanent legal force. Paragraph (2) It is clear enough.

Article 56
Administering means conducting bookkeeping for every request for Credit Information, whether requested in writing, orally, or through electronic media. This bookkeeping can use information technology media.

Article 57
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
Compliance with legislation includes among others to implement provisions requiring equal quality for one debtor or one same project.

Article 58
It is clear enough.

Article 59
It is clear enough.

Article 60
It is clear enough.

Article 61
It is clear enough.

Article 62
It is clear enough.

Article 63
It is clear enough.

Article 64
It is clear enough.

Article 65
It is clear enough.

Article 66
It is clear enough.

Article 67
It is clear enough.

Article 68
Paragraph (1)
It is clear enough.
Paragraph (2)
Direct supervision is supervision conducted by the Financial Services Authority through examinations of LPIP operations.
Indirect supervision is supervision conducted by the Financial Services Authority through analysis of reports submitted by the LPIP, documents, data, and/or other information.

Article 69
It is clear enough.

Article 70
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
Determination by the Financial Services Authority in the form of a Financial Services Authority Circular Letter.

Article 71
It is clear enough.

Article 72
It is clear enough.

Article 73
Paragraph (1)
It is clear enough.
Paragraph (2)
Example of monthly report submission:
Monthly reports for the January 2020 period must be submitted at the latest on February 7, 2020.

Paragraph (3)
Example of late submission of monthly reports:
The monthly report for the January 2020 period is submitted during the period from February 8, 2020, to February 29, 2020.
Paragraph (4)
Example of non-submission of monthly reports:
The monthly report for the January 2020 period is submitted after February 29, 2020.
Article 74
Paragraph (1)
This is clear enough.
Paragraph (2)
The submission of semesterly reports does not eliminate the obligation of the LPIP to submit other reports during that period.
Example of submission of semesterly reports:
The semesterly report for semester I of the year 2020 is submitted no later than July 31, 2020.
Paragraph (3)
Example of late submission of semesterly reports:
The semesterly report for semester I of the year 2020 is submitted during the period from August 1, 2020, to August 31, 2020.
Paragraph (4)
Example of non-submission of semesterly reports:
The semesterly report for semester I of the year 2020 is submitted after August 31, 2020.
Article 75
Paragraph (1)
Annual reports are comprehensive reports regarding the performance of the LPIP over a period of 1 (one) year.
Paragraph (2)
This is clear enough.
Paragraph (3)
The submission of annual reports does not eliminate the obligation of the LPIP to submit other reports during that period.
Paragraph (4)
Example of late submission of annual reports:
The annual report for the year 2020 period is submitted during the period from June 1, 2021, to June 30, 2021.
Paragraph (5)
Example of non-submission of annual reports:
The annual report for the year 2020 period is submitted after June 30, 2021.
Article 76
Paragraph (1)
This is clear enough.
Paragraph (2)
The submission of annual business plans does not eliminate the obligation of the LPIP to submit other reports during that period.
Paragraph (3)
Example of late submission of annual business plans:
The annual business plan for the year 2021 period is submitted during the period from December 1, 2020, to December 31, 2020.
Paragraph (4)
Example of non-submission of annual business plans:
The annual business plan for the year 2021 period is submitted after December 31, 2020.
Article 77
Paragraph (1)
This is clear enough.
Paragraph (2)
Letter a
Example:
The monthly report for the January 2020 period, which should have been received by the Financial Services Authority no later than Friday, February 7, 2020, but was only submitted on Monday, February 10, 2020. Due to this delay, the LPIP is subject to a fine penalty of Rp100,000.00 x 1 working day or an amount of Rp100,000.00. Letter b Example:
The monthly report for the January 2020 period, which should have been received by the Financial Services Authority no later than Friday, February 7, 2020, but had not been submitted by the LPIP as of February 29, 2020. Due to this violation, the LPIP is subject to a fine penalty of Rp5,000,000.00. Letter c Example:
The semesterly report for semester I of 2020, which should have been received by the Financial Services Authority no later than Friday, July 31, 2020, but was only submitted on Thursday, August 6, 2020. Due to this delay, the LPIP is subject to a fine penalty of Rp1,000,000.00 x 4 working days or an amount of Rp4,000,000.00. Letter d Example:
The annual report for the year 2020 period, which should have been received by the Financial Services Authority no later than Monday, May 31, 2021, but had not been submitted by the LPIP as of June 30, 2021. Due to this violation, the LPIP is subject to a fine penalty of Rp50,000,000.00. Paragraph (3) This is clear enough.
Article 78
Paragraph (1)
Letter a
The minutes of the general meeting of shareholders must at least contain decisions approving the dissolution of the limited liability company and ordering the directors to settle the LPIP's obligations. Letter b This is clear enough. Letter c The plan to settle all obligations includes, among other things, the settlement of customer complaints, a plan for the transfer of Credit Data and/or Other Data to the Financial Services Authority or another party designated by the Financial Services Authority, a data destruction plan, payment of obligations to other parties, payment of unpaid salaries, payment of office costs, unpaid taxes, and other relevant costs. Letter d This is clear enough. Letter e This is clear enough. Paragraph (2) This is clear enough.
Article 79
This is clear enough.
Article 80
This is clear enough.
Article 81
Determination by the Financial Services Authority in the form of a Financial Services Authority Circular Letter.
Article 82
This is clear enough.
Article 83
Determination by the Financial Services Authority in the form of a Financial Services Authority Circular Letter.
Article 84
This is clear enough.
Article 85
This is clear enough.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6449