Financial Services Authority Regulation Number 46 of 2020 Concerning Infrastructure Financing Companies

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 46 /POJK.05/2020
CONCERNING
INFRASTRUCTURE FINANCING COMPANIES
BY THE GRACE OF GOD THE MOST HIGH,
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that in order to implement the authority for regulation and supervision in the financing institution sector as referred to in Article 8 and Article 9 of Law Number 21 of 2011 concerning the Financial Services Authority, the Financial Services Authority has the authority to establish legislation regarding infrastructure financing companies; b. that infrastructure financing companies as financial institutions play a role in supporting the financing of infrastructure facility development to support government policies in meeting national development needs;
c. that to increase the role of infrastructure financing companies in the national economy and improve prudential regulation, it is necessary to refine the regulations regarding infrastructure financing companies;

d. that based on the considerations as referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning Infrastructure 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); DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING INFRASTRUCTURE FINANCING COMPANIES.

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

1. Financing is the provision of funds or anything that can be equated with it, including those conducted based on Sharia principles by infrastructure financing companies.

2. Infrastructure is technical, physical, system, hardware, and software facilities required to provide services to the public and support structural networks so that economic and social growth of the community can run well.

3. Infrastructure Financing Company is a business entity specifically established to conduct Financing on Infrastructure projects and/or the implementation of other activities or facilities in order to support Infrastructure Financing, including Infrastructure Financing Companies that conduct all or part of their business activities based on Sharia Principles.

4. Sharia Principles are Islamic legal provisions based on fatwas and/or statements of Sharia compliance from the National Sharia Council of the Indonesian Ulema Council.

5. Sharia Business Unit, hereinafter abbreviated as UUS, is a work unit of the headquarters of the Infrastructure Financing Company that conducts Financing based on Sharia Principles and/or functions as the head office of offices that conduct Financing based on Sharia Principles.

6. Controlling Shareholder, hereinafter abbreviated as PSP, is an individual, legal entity, and/or business group that owns shares or capital of the Infrastructure Financing Company amounting to 25% (twenty-five percent) or more of the issued shares and has voting rights, or owns shares or capital of the Infrastructure Financing Company less than 25% (twenty-five percent) of the issued shares and has voting rights but can be proven to have exercised control, either directly or indirectly.

7. Board of Directors is the company organ authorized and fully responsible for the management of the company for the interests of the company, in accordance with the purpose and objectives of the company and representing the company, both inside and outside the court in accordance with the provisions of the articles of association.

8. Board of Commissioners is the company organ tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors.

9. Sharia Supervisory Board, hereinafter abbreviated as DPS, is a board that has the task and function of supervision and providing advice to the Board of Directors regarding the implementation of Infrastructure Financing Company activities to ensure compliance with Sharia Principles.

10. Good Corporate Governance for Infrastructure Financing Companies, hereinafter referred to as Good Corporate Governance, is a set of processes implemented in Infrastructure Financing Companies to determine decisions and manage Infrastructure Financing Companies using principles of transparency, accountability, responsibility, independence, and justice.

11. Health Level of Infrastructure Financing Companies, hereinafter referred to as Health Level, is the result of an assessment of the condition of Infrastructure Financing Companies conducted against Good Corporate Governance, risk profile, profitability, and capitalization.

12. Maximum Limit for Providing Financing, hereinafter abbreviated as BMPP, is a specific limit in the disbursement of Financing permitted based on this Financial Services Authority Regulation.

CHAPTER II
BUSINESS ACTIVITIES
Article 2
(1) The business activities of Infrastructure Financing Companies include:
a. direct lending for Infrastructure Financing; b. refinancing of Infrastructure financed by other parties;
c. providing subordinated Financing related to Infrastructure Financing;
d. other activities or providing other facilities related to Infrastructure Financing after obtaining approval from the Financial Services Authority; and/or e. other activities or providing other facilities not related to Infrastructure Financing based on government assignment. (2) Subordinated Financing as referred to in paragraph (1) letter c is a form of providing Financing with the following criteria:
a. with a minimum term of 5 (five) years; b. in the event of liquidation, the claim right applies last among all existing financings; and
c. stipulated in a written agreement between the Infrastructure Financing Company and the debtor.
(3) In the event that an Infrastructure Financing Company conducts business activities based on government assignment as referred to in paragraph (1) letter e, the Infrastructure Financing Company is required to report to the Financial Services Authority within a maximum of 5 (five) working days after receiving the assignment, containing at least information regarding the impact of the implementation of the government task on:
a. the financial condition of the Infrastructure Financing Company; and b. compliance with the provisions in this Financial Services Authority Regulation. (4) In addition to conducting business activities as referred to in paragraph (1), Infrastructure Financing Companies may also conduct:
a. providing credit support; b. providing consulting services;

c. capital participation and/or
d. efforts to find swap markets related to Infrastructure Financing.
(5) Business activities as referred to in paragraph (1) to paragraph (4) may be conducted based on Sharia Principles by Infrastructure Financing Companies whose entire business activities are based on Sharia Principles or by establishing a UUS. (6) The implementation of business activities based on Sharia Principles as referred to in paragraph (5) must fulfill the following provisions:
a. principles of justice ('adl), balance (tawazun), public interest (maslahah), and universalism (alamiyah); b. does not contain things that are prohibited;
c. is conducted using agreements in accordance with fatwas of the National Sharia Council of the Indonesian Ulema Council and/or other agreements that do not contradict Sharia Principles after obtaining approval from the Financial Services Authority.

Article 3
(1) In order to carry out other activities or provide other facilities related to Infrastructure Financing as referred to in Article 2 paragraph (1) letter d, Infrastructure Financing Companies must fulfill the following requirements:
a. the plan to carry out other activities or provide other facilities related to Infrastructure Financing has been included in the business plan of the Infrastructure Financing Company; b. has a health level with a minimum composite rating of 2;
c. fulfills the gearing ratio provisions; and

d. is not currently subject to administrative sanctions by the Financial Services Authority.
(2) Infrastructure Financing Companies that will carry out other activities or provide other facilities related to Infrastructure Financing as referred to in paragraph (1) must submit an application to the Financial Services Authority by attaching documents containing at least an explanation regarding:
a. mechanisms; b. the application of prudential principles and risk mitigation;
c. business prospect analysis;
d. rights and obligations of the parties; and e. sample agreements to be used, from the other activities or provision of other facilities to be offered. (3) The Financial Services Authority provides approval or rejection of the application as referred to in paragraph (2) within a maximum period of 20 (twenty) working days from the date the application is received. (4) In providing approval or rejection as referred to in paragraph (3), the Financial Services Authority conducts:
a. analysis of the completeness of documents as referred to in paragraph (2); b. analysis of compliance with the provisions in this Financial Services Authority Regulation; and
c. analysis of the feasibility of the plan to carry out other activities or provide other facilities related to Infrastructure Financing, submitted.
(5) In the event that the application for approval to carry out other activities or provide other facilities related to Infrastructure Financing as referred to in paragraph (2) is approved, the Financial Services Authority establishes an approval decision for the Infrastructure Financing Company. (6) In the event that the Financial Services Authority rejects the application for approval to carry out other activities or provide other facilities related to Infrastructure Financing as referred to in paragraph (2), the rejection must be done in writing and accompanied by reasons for rejection.

Article 4
(1) Infrastructure that becomes the object of Infrastructure Financing includes:
a. transportation infrastructure; b. road infrastructure;
c. water resources and irrigation infrastructure;
d. drinking water infrastructure; e. centralized wastewater management system infrastructure; f. local wastewater management system infrastructure; g. waste management system infrastructure; h. telecommunications and informatics infrastructure;
i. electricity infrastructure;
j. oil, gas, and renewable energy infrastructure; k. energy conservation infrastructure;
l. urban facility infrastructure;
m. educational facility infrastructure; n. sports and arts facility and infrastructure; o. area infrastructure; p. tourism infrastructure; q. health infrastructure; r. correctional facility infrastructure; s. public housing infrastructure; t. state building infrastructure; and

u. other infrastructure not included in letters a to t which must first obtain approval from the Financial Services Authority.
(2) Infrastructure that becomes the object of Financing as referred to in paragraph (1) refers to the type of infrastructure based on statutory provisions.

CHAPTER III
LEGAL ENTITY FORM, OWNERSHIP,
PAID-UP CAPITAL AT ESTABLISHMENT, AND
FOREIGN OWNERSHIP
First Section
Legal Entity Form
Article 5
Infrastructure Financing Companies must be established in the form of a limited liability company (perseroan terbatas).

Second Section
Ownership
Article 6
(1) Shares of Infrastructure Financing Companies are prohibited from being owned by parties other than:
a. Indonesian citizens; b. foreign citizens;
c. Indonesian legal entities;
d. foreign legal entities; e. the central government; and/or f. local governments.
(2) Foreign citizens as referred to in paragraph (1) letter b may become owners of Infrastructure Financing Companies only through transactions on the securities exchange.

Article 7
(1) For shareholders in the form of legal entities, the amount of capital participation in the Infrastructure Financing Company is set at a maximum equal to the equity of the shareholder. (2) The provisions on the amount of capital participation as referred to in paragraph (1) do not apply to shareholders of Infrastructure Financing Companies that are financial service institutions under the supervision of the Financial Services Authority. (3) For shareholders that are financial service institutions under the supervision of the Financial Services Authority, the amount of capital participation in the Infrastructure Financing Company must be carried out in accordance with statutory provisions regarding investment and/or participation. (4) The provisions as referred to in paragraph (1) and paragraph (3) must be fulfilled when the shareholder:
a. pays the founding capital of the Infrastructure Financing Company; b. purchases shares of the Infrastructure Financing Company; and/or
c. increases the paid-up capital of the Infrastructure Financing Company.

Article 8
(1) Every PSP must fulfill the fit and proper test provisions.
(2) Prospective PSPs who have not met the fit and proper test provisions are prohibited from carrying out actions, duties, and functions as a PSP. (3) The fit and proper test as referred to in paragraph (1) and paragraph (2) is implemented in accordance with the Financial Services Authority Regulation concerning the fit and proper test for principal parties of financial service institutions.

Third Section
Paid-Up Capital at Establishment
Article 9
(1) Infrastructure Financing Companies must have paid-up capital at establishment of at least IDR 1,000,000,000,000.00 (one trillion rupiah). (2) Paid-up capital at establishment must be paid in cash and in full, placed in the form of time deposits in the name of the Infrastructure Financing Company at:
a. commercial banks, Sharia commercial banks, or Sharia business units of commercial banks in Indonesia for Infrastructure Financing Companies; or b. Sharia commercial banks or Sharia business units of commercial banks in Indonesia for Infrastructure Financing Companies whose entire business activities are based on Sharia Principles. (3) The source of funds for capital participation in Infrastructure Financing Companies is prohibited from originating from:
a. money laundering, terrorism financing, and other financial crimes; and b. loans.
(4) Infrastructure Financing Companies are required to increase paid-up capital to a minimum of IDR 2,000,000,000,000.00 (two trillion rupiah) within a maximum period of 5 (five) years from the date of issuance of the business license. (5) The plan to increase paid-up capital as referred to in paragraph (4) is submitted at the time of applying for the business license.

(6) In the event that the provisions as referred to in paragraph (4) are potentially not met due to market conditions, the Infrastructure Financing Company may change the paid-up capital increase plan in the business plan with the approval of the Financial Services Authority.

Fourth Section
Foreign Ownership
Article 10
(1) Foreign ownership in Infrastructure Financing Companies, both directly and indirectly, is prohibited from exceeding 85% (eighty-five percent) of the paid-up capital of the Infrastructure Financing Company. (2) The foreign ownership limit for Infrastructure Financing Companies as referred to in paragraph (1) does not apply to Infrastructure Financing Companies that are public companies and trade their shares on the exchange. (3) In the event that the Company requires additional capital from foreign shareholders because:
a. it does not meet the minimum capitalization and equity ratio provisions; and/or b. there are liquidity problems, which can disrupt the sustainability of the Company's business, the foreign ownership limit for the Company as referred to in paragraph (1) may be exceeded. (4) In the event of an exceedance of the foreign ownership limit as referred to in paragraph (3), the Infrastructure Financing Company is required to adjust the foreign ownership limit within a period in accordance with the approved foreign ownership limit adjustment plan by the Financial Services Authority, with a maximum period of 3 (three) years calculated from the date of reporting the implementation of the ownership change to the Financial Services Authority.

Fifth Section
Management
Article 11
(1) Infrastructure Financing Companies are required to have at least:
a. 3 (three) members of the Board of Directors; b. 2 (two) members of the Board of Commissioners;
c. 1 (one) independent commissioner; and
d. 1 (one) member of the DPS for Infrastructure Financing Companies that conduct all or part of their business activities based on Sharia Principles. (2) Each Director of an Infrastructure Financing Company:
a. is required to reside in Indonesia; and b. is prohibited from holding concurrent positions as a Director in other companies.
(3) Infrastructure Financing Companies are required to have a Board of Directors that oversees the compliance function.
(4) Directors of Infrastructure Financing Companies are prohibited from holding concurrent positions as members of the Board of Commissioners in more than 1 (one) other company. (5) The Board of Commissioners of Infrastructure Financing Companies is prohibited from holding concurrent positions as members of the Board of Commissioners in more than 3 (three) other companies. (6) Concurrent positions for independent commissioners of Infrastructure Financing Companies as referred to in paragraph (5) are prohibited from being held in other Infrastructure Financing Companies and/or in companies engaged in Infrastructure projects.

(7) Concurrent positions as referred to in paragraph (2) letter b do not include if the Director member responsible for supervision over participation in subsidiaries that have businesses in the field of Infrastructure Financing, performs functional duties as a member of the Board of Commissioners in the subsidiary controlled by the Infrastructure Financing Company, provided that such concurrent position does not cause the person concerned to neglect the implementation of duties and authorities as a Director member of the Infrastructure Financing Company. (8) Concurrent positions as referred to in paragraph (4) do not include if:
a. Board of Commissioner members other than independent commissioners perform functional duties from the shareholder of the Infrastructure Financing Company in the form of a legal entity within their business group; and/or b. Board of Commissioner members hold positions in non-profit organizations or institutions, provided that the person concerned does not neglect the implementation of duties and responsibilities as a member of the Board of Commissioners of the Infrastructure Financing Company.

Article 12
(1) Each Director, member of the Board of Commissioners, and/or member of the DPS of the Infrastructure Financing Company is required to fulfill the fit and proper test provisions. (2) Prospective Directors, prospective members of the Board of Commissioners, and/or prospective members of the DPS who have not met the fit and proper test provisions as referred to in paragraph (1) are prohibited from carrying out actions, duties, and functions as Director members, Board of Commissioner members, or DPS members even if they have received approval and been appointed by the general meeting of shareholders. (3) The fit and proper test as referred to in paragraph (1) and paragraph (2) is implemented in accordance with the Financial Services Authority Regulation concerning the fit and proper test for principal parties of financial service institutions.

CHAPTER IV
ORGANIZATIONAL STRUCTURE
Article 13
(1) Infrastructure Financing Companies are required to have an organizational structure that clearly depicts at least the following functions:
a. finance, administration, and accounting; b. marketing, Financing, and investment;
c. risk management, internal control, and compliance;
d. implementation of anti-money laundering and counter-terrorism financing programs; e. information system management; and f. fraud control. (2) The organizational structure as referred to in paragraph (1) must be completed with written descriptions of duties, authorities, responsibilities, and work procedures. (3) The organizational structure as referred to in paragraph (1) must reflect good internal control. (4) Infrastructure Financing Companies are required to have employees responsible for each function as referred to in paragraph (1). (5) Infrastructure Financing Companies are required to have employees with expertise in Infrastructure Financing and project financing.

(6) The implementation of functions as referred to in paragraph (1) must be supported by at least a data processing system that can generate information that is complete, accurate, up-to-date, whole, and accountable in decision-making.

CHAPTER V
BUSINESS LICENSING
Article 14
Infrastructure Financing Companies conduct business activities after obtaining a business license from the Financial Services Authority.

Article 15
To obtain a business license as referred to in Article 14, the Board of Directors must submit a business license application to the Financial Services Authority, by attaching documents:
a. a copy of the deed of establishment of the legal entity that has been approved by the competent authority, which must at least contain:

1. name and domicile;

2. purpose and objectives as well as business activities;

3. paid-up capital;

4. ownership; and

5. authorities, responsibilities, and term of office of Director members, Board of Commissioner members, and/or DPS members;
   b. a copy of the last amendment to the articles of association accompanied by proof, approval, and/or notification receipt from the competent authority;
   c. data of Directors and Commissioners, including:

6. photocopy of identification cards which can be ID cards or passports for those with foreign citizenship;

7. curriculum vitae;

8. statement letter:
   a) has never been sentenced for criminal offenses; and b) has never been declared bankrupt or declared guilty causing a legal entity to be bankrupt; and

9. photocopy of Temporary Stay Permit Card (KITAS), Permanent Stay Permit Card (KITAP), and photocopy of work permits from competent authorities for Directors and Commissioners with foreign citizenship;
   d. data of shareholders other than PSP, including:

10. individuals, attached with documents as referred to in letter c number 1, number 2, and number 3;

11. legal entities, attached with:
    a) a copy of the deed of establishment of the legal entity, including the articles of association along with amendments that have received approval, consent, registration, and/or notification receipt from the competent authority including for foreign legal entities in accordance with regulations in the country of origin; b) the latest annual financial report audited by a public accountant and the latest interim financial report; and c) documents as referred to in letter c number 1, number 2, and number 3 for shareholders and directors of the respective legal entity.

12. Government, attached with:

a) government regulations regarding the participation of the Republic of Indonesia's state capital for the establishment of companies in the Infrastructure Financing sector, for the central government; and b) regional regulations regarding the participation of regional capital for the establishment of companies in the Infrastructure Financing sector, for regional governments. e. a shareholder statement declaring that:

1. the source of funds for capital participation does not originate from money laundering, terrorism financing activities, and other financial crimes; and
2. the source of funds for capital participation does not originate from loans;
   f. photocopy of proof of paid-up capital settlement in the form of:
3. cash deposit receipts from shareholders;
4. the Infrastructure Financing Company's bank statements from the date of capital deposit by shareholders until the date of the business license application; and
5. photocopy of proof of paid-up capital placement in the form of time deposits in the name of the relevant Infrastructure Financing Company at:
   a) commercial banks, Sharia commercial banks, or Sharia business units of commercial banks in Indonesia for Infrastructure Financing Companies; or b) Sharia commercial banks or Sharia business units of commercial banks in Indonesia for Sharia Infrastructure Financing Companies whose entire business activities are based on Sharia Principles, and remains valid during the business license application process;

g. a business plan for the first 5 (five) years which at least contains:

1. a Financing plan and steps taken to realize the aforementioned plan; and
2. projections of cash flow, financial position, and annual profit/loss calculations starting from when the Infrastructure Financing Company conducts operational activities, accompanied by the assumptions used;
   h. proof of operational readiness which at least contains:
3. an organizational structure accompanied by descriptions of duties, authorities, responsibilities, and personnel;
4. work systems and procedures;
5. a list of fixed assets and inventory;
6. proof of ownership or control of the office building showing the address of the Infrastructure Financing Company along with photos of the building's exterior and interior, as well as the room layout;
7. examples of Financing agreements or contracts;
8. information system infrastructure; and
9. tax identification number;
   i. photocopy of the cooperation agreement between foreign legal entity shareholders and Indonesian shareholders, for Infrastructure Financing Companies that include participation from foreign legal entities, at least containing:
10. capital composition and details of authority, which at least contain provisions regarding voting rights, profit and loss distribution, and the appointment of Directors and Commissioners of the Infrastructure Financing Company; and
11. obligations of foreign legal entity shareholders to prepare and implement education and training programs according to their field of expertise;
    j. photocopy of the anti-money laundering and terrorism financing prevention implementation guidelines; and k. photocopy of Good Corporate Governance guidelines.

Article 16
The business license application as referred to in Article 15 is submitted simultaneously with the suitability and propriety assessment application for prospective Directors, Commissioners, PSPs, and/or DPS members.

Article 17
(1) The Financial Services Authority grants approval or rejection of the business license application as referred to in Article 15 within a maximum period of 20 (twenty) working days from the date the complete application documents are received. (2) To grant approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 15; b. examination of capital deposits;
c. feasibility analysis of the business plan as referred to in Article 15 letter g;
d. suitability and propriety assessment of prospective Directors, Commissioners, PSPs, and/or DPS members; and e. analysis of compliance with regulations in the field of Infrastructure Financing. (3) The Financial Services Authority has the authority to conduct inspections at the Infrastructure Financing Company's office to ensure the operational readiness of the Infrastructure Financing Company.

(4) In the event the business license application is approved, the Financial Services Authority establishes a decision granting the business license. (5) In the event the business license application is rejected, the rejection is done in writing and accompanied by the reasons for rejection.

Article 18
Infrastructure Financing Companies that have received a business license from the Financial Services Authority are required to conduct business activities for a maximum of 3 (three) months calculated from the date the business license is established by the Financial Services Authority.

CHAPTER VI
BRANCH OFFICES

Article 19
(1) Infrastructure Financing Companies intending to open branch offices must meet the following requirements:
a. have included the branch opening plan in the business plan; b. have a health level with a minimum composite rating of 2; and
c. are not currently subject to sanctions by the Financial Services Authority.
(2) The opening of an Infrastructure Financing Company's branch office must be reported to the Financial Services Authority for a maximum of 10 (ten) working days calculated from the date of opening, accompanied by:
a. proof of control of the office building; and b. work systems and procedures, organizational structure, and personnel including the name of the branch head and the number of employees; (3) Branch offices as referred to in paragraph (1):
a. may conduct all types of business activities of the Infrastructure Financing Company; and

b. conduct their own administrative and accounting operations;

Article 20
The closure of an Infrastructure Financing Company's branch office must be reported to the Financial Services Authority for a maximum of 10 (ten) working days since the date of closure, by submitting:
a. a plan for settling the rights and obligations of the branch office; and b. proof of notification to relevant parties regarding the settlement of rights and obligations of the branch office.

CHAPTER VII
SHARIA BUSINESS UNITS

Article 21
(1) Infrastructure Financing Companies conducting part of their business activities based on Sharia Principles are required to establish a Sharia Business Unit (UUS). (2) The establishment of a UUS as referred to in paragraph (1) must be done by meeting the following provisions:
a. allocating working capital for the UUS which is set aside separately; b. having at least 1 (one) DPS member who has obtained a recommendation from the National Sharia Council of the Indonesian Ulema Council;
c. having separate accounting between the Infrastructure Financing Company and the UUS; and
d. having a UUS leader who meets the requirements:

1. does not have non-performing loans and/or financing;
2. is not included in the list of parties prohibited from becoming principal parties;
3. has expertise and/or experience in the Sharia financial services sector; and
4. does not hold concurrent positions in other functions within the same Infrastructure Financing Company.
   (3) To establish a UUS as referred to in paragraph (1), the Infrastructure Financing Company must first obtain a UUS establishment license by submitting an application to the Financial Services Authority accompanied by:
   a. a copy of the deed of amendment to the articles of association containing:
5. one of the purposes and objectives of the Infrastructure Financing Company conducting business activities based on Sharia Principles; and
6. 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 the Infrastructure Financing Company at one of the Sharia commercial banks or Sharia business units of commercial banks in Indonesia, legalized by the bank, which remains valid during the UUS establishment license application process;
   c. a Director's decision approving the placement of working capital in the UUS accompanied by the amount of the working capital placement;
   d. UUS leader data, including:
7. photocopy of valid identification cards such as ID cards or passports;
8. photocopy of the tax identification number;
9. a curriculum vitae accompanied by the latest 4 x 6 cm color passport-sized photo;
10. proof of appointment as the UUS leader;
11. a statement declaring:
    a) no non-performing loans and/or financing; and b) no concurrent positions in other functions within the same Infrastructure Financing Company; and
12. proof of expertise, training, and/or experience in the Sharia finance sector;
    e. minutes of the General Meeting of Shareholders regarding the appointment of DPS members; f. initial financial reports of the UUS separated from the business activities of the Infrastructure Financing Company; g. documents reporting the use of contracts used in activities based on Sharia Principles and examples of contracts to be used; and h. a work plan for the UUS to be formed, containing at least:
13. a feasibility study regarding market opportunities and economic potential;
14. targets for Sharia Principle Financing distribution and steps taken to realize the aforementioned targets;
15. work systems and procedures;
16. the number and composition of personnel; and
17. monthly projections for 12 (twelve) months over:
    a) financial position reports; b) comprehensive profit and loss reports; and c) cash flow reports, along with the assumptions used.
    (4) The UUS establishment license application as referred to in paragraph (3) is submitted simultaneously with the suitability and propriety assessment application for prospective DPS members of the Infrastructure Financing Company.

Article 22
(1) The Financial Services Authority grants approval or rejection of the UUS establishment license application as referred to in Article 21 paragraph (3) within a maximum period of 20 (twenty) working days from the date the complete UUS establishment license application documents are received. (2) To grant approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 21 paragraph (3); b. examination of UUS working capital deposits;
c. feasibility analysis of the UUS work plan as referred to in Article 21 paragraph (3) letter h;
d. suitability and propriety assessment of prospective DPS members; and e. analysis of compliance with regulations in the field of Infrastructure Financing. (3) In the event the UUS establishment license application is approved, the Financial Services Authority:
a. establishes a decision granting the UUS establishment license; and b. records the contracts used by the UUS.
(4) In the event the UUS establishment license application is rejected, the rejection is done in writing and accompanied by the reasons for rejection.

Article 23
UUSs that have received a business license from the Financial Services Authority are required to conduct business activities based on Sharia Principles for a maximum of 3 (three) months calculated from the date the UUS establishment license is established by the Financial Services Authority.

Article 24
(1) The closure of an Infrastructure Financing Company's UUS must be reported to the Financial Services Authority for a maximum of 10 (ten) working days since the date of closure, by submitting:
a. a plan for settling the rights and obligations of the UUS office which at least contains settlement steps and details of their implementation schedule; and b. proof of notification to relevant parties regarding the settlement of rights and obligations of the UUS. (2) Based on the report as referred to in paragraph (1), the Financial Services Authority conducts an analysis of the feasibility of the UUS rights and obligations settlement plan and the completeness of documents for the UUS closure. (3) The Financial Services Authority has the authority to request the Infrastructure Financing Company to meet the UUS closure provisions as referred to in paragraph (1). (4) In the event the Infrastructure Financing Company has met the UUS closure provisions as referred to in paragraph (1), the Financial Services Authority revokes the UUS establishment license from the relevant Infrastructure Financing Company.

CHAPTER VIII
FUNDING SOURCES, PARTICIPATION, AND PLACEMENT OF FUNDS First Section Funding Sources

Article 25
(1) To finance its activities, Infrastructure Financing Companies may obtain funding sources from:
a. issuance of securities; b. loans sourced from:

1. the central government;
2. regional governments;
3. foreign governments;
4. multilateral organizations; and
5. banks and/or financial institutions, both domestic and foreign;
   c. subordinated loans;
   d. grants; and/or e. other funding sources in accordance with applicable regulations.
   (2) Funding sources for business activities based on Sharia Principles must meet Sharia Principles.
   (3) Regarding the management of funding as referred to in paragraph (1) and paragraph (2), Infrastructure Financing Companies are required to meet prudent principles and risk management, including having:
   a. written policies and procedures created by the Infrastructure Financing Company's Directors and approved by the Infrastructure Financing Company's Commissioners; and b. an internal control system, that is adequate for funding activities.

Article 26
(1) Infrastructure Financing Companies are required to meet a gearing ratio of at least 0 (zero) times and at most 10 (ten) times.
(2) The gearing ratio as referred to in paragraph (1) for Infrastructure Financing Companies must be obtained from the comparison between the sum of:
a. issued securities as referred to in Article 25 paragraph (1) letter a; b. loans as referred to in Article 25 paragraph (1) letter b; and
c. subordinated loans as referred to in Article 25 paragraph (1) letter c,
with the difference between the sum of equity and subordinated loans as referred to in Article 25 paragraph (1) letter c and participation. (3) Subordinated loans as referred to in paragraph (2) letter c are loans received by the Infrastructure Financing Company with the following requirements:
a. with a minimum term of 5 (five) years; b. in the event of liquidation, the claim right applies last among all existing loans; and
c. stipulated in a written agreement between the Infrastructure Financing Company and the lender.
(4) Subordinated loans that can be counted as the denominator in the gearing ratio calculation as referred to in paragraph (2) are set at a maximum of 50% (fifty percent) of paid-up capital.

Second Section
Participation

Article 27
(1) Infrastructure Financing Companies are prohibited from conducting direct participation except in:
a. companies in the financial services sector; and/or b. companies engaged in Infrastructure projects as referred to in Article 4.
(2) Direct participation for Infrastructure Financing Companies conducting their activities based on Sharia Principles must be done by meeting Sharia Principles.

(3) The total amount of direct participation by Infrastructure Financing Companies is set at a maximum of 75% (seventy-five percent) of the equity of the relevant Infrastructure Financing Company. (4) Equity as referred to in paragraph (2) is based on the latest audited financial report. (5) Infrastructure Financing Companies are required to meet the direct participation amount provisions as referred to in paragraph (2) at the time of making the participation. (6) In the event an Infrastructure Financing Company intends to conduct direct participation as referred to in paragraph (1), the direct participation must be done by meeting prudent principles and risk management, including having:
a. written policies and procedures created by the Infrastructure Financing Company's Directors and approved by the Infrastructure Financing Company's Commissioners; and b. an internal control system, that is adequate for direct participation activities.

Third Section
Placement of Funds

Article 28
(1) Infrastructure Financing Companies may place funds in the form of deposits and current accounts at banks, Government Securities, Bank Indonesia Certificates, collective investment contract instruments, and/or other financial instruments with an investment grade rating established by a rating agency.

(2) Placement of funds as referred to in paragraph (1) for Sharia Infrastructure Financing Companies conducting their business activities based on Sharia Principles must meet Sharia Principles. (3) Placement of funds as referred to in paragraph (1) must be done by meeting prudent principles and risk management, including having:
a. written policies and procedures created by the Infrastructure Financing Company's Directors and approved by the Infrastructure Financing Company's Commissioners; and b. an internal control system, that is adequate for fund placement activities.

CHAPTER IX
HEALTH LEVEL ASSESSMENT
First Section
General

Article 29
(1) Infrastructure Financing Companies are required to maintain and/or improve their Health Level by applying prudent principles and risk management in conducting business activities. (2) Infrastructure Financing Companies are required to conduct Health Level assessments using an individual risk approach. (3) In the event an Infrastructure Financing Company controls subsidiary companies, in addition to conducting Health Level assessments using an individual approach as referred to in paragraph (2), the Infrastructure Financing Company is required to conduct Health Level assessments using a consolidated risk approach. (4) Infrastructure Financing Companies conducting part of their business activities based on Sharia Principles are required to conduct Health Level assessments of the UUS using an individual approach. (5) Individual and consolidated Health Level assessments are conducted with an assessment scope covering the following factors:
a. Good Corporate Governance; b. risk profile;
c. profitability; and
d. capital adequacy
(6) Further provisions regarding the individual Health Level assessment of Infrastructure Financing Companies as referred to in paragraph (2) and the consolidated Health Level assessment as referred to in paragraph (3) are established by the Financial Services Authority.

Article 30
Health Level assessments as referred to in Article 29 are implemented in accordance with Financial Services Authority Regulations regarding the financial health levels of non-bank financial service institutions.

Second Section
Good Corporate Governance Assessment

Article 31
(1) Assessment of the Good Corporate Governance factor as referred to in Article 29 paragraph (5) letter a is an assessment of the implementation of Good Corporate Governance principles by the Infrastructure Financing Company.

(2) Infrastructure Financing Companies are required to apply Good Corporate Governance principles in every business activity at all levels or organizational tiers. (3) Good Corporate Governance principles as referred to in paragraph (1) and paragraph (2) include:
a. openness; b. accountability;
c. responsibility;
d. independence; and e. equality and fairness.

Article 32
(1) Implementation of Good Corporate Governance principles as referred to in Article 31 paragraph (1) must be stipulated in a guideline containing at least:
a. procedures for carrying out the duties and responsibilities of Directors, Commissioners, and DPS; b. completeness and procedures for carrying out the duties of committees and work units exercising internal control functions;
c. policies and procedures for applying compliance, internal audit, and external audit functions;
d. policies and procedures for applying risk management, including internal control systems; e. remuneration policies; and f. policies on transparency of financial and non-financial conditions. (2) The Financial Services Authority conducts assessments on the implementation of Good Corporate Governance. (3) The Financial Services Authority has the authority to request Infrastructure Financing Companies to perform or not perform certain actions to improve the implementation of Good Corporate Governance.

(4) Infrastructure Financing Companies are required to meet the Financial Services Authority's requests to perform or not perform certain actions as referred to in paragraph (3).

Third Section
Risk Profile Assessment
First Paragraph
Risk Management Implementation

Article 33
(1) Infrastructure Financing Companies are required to implement risk management effectively.
(2) Effective implementation of risk management as referred to in paragraph (1) at least covers:
a. active supervision by Directors, 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) Risk management as referred to in paragraph (1) must be applied to:
a. credit risk; b. market risk;
c. liquidity risk;
d. operational risk; e. legal risk; f. reputational risk; g. strategic risk; and h. compliance risk.

(4) Implementation of risk management as referred to in paragraph (1) to paragraph (3) is implemented in accordance with Financial Services Authority Regulations regarding the implementation of risk management for non-bank financial service institutions.

Second Paragraph
Assessment Mechanism

Article 34
(1) Assessment of the risk profile factor as referred to in Article 29 paragraph (5) letter b is an assessment of:
a. inherent risk; and b. the quality of risk management implementation as referred to in Article 33 paragraph (1), in the operations of the Infrastructure Financing Company. (2) Assessment of inherent risk as referred to in paragraph (1) letter a includes assessment of the implementation of prudent principles by the Infrastructure Financing Company at least:
a. quality of Financing receivables; b. Financing receivables reserves; and
c. BMPP.

Article 35
Infrastructure Financing Companies are required to assess, monitor, and take steps to ensure that the quality of Financing receivables remains good.

Article 36
(1) Infrastructure Financing Companies are required to establish the same Financing receivables quality for:
a. 1 (one) debtor with several different Financings; and/or b. 1 (one) debtor financed by several creditors to finance the same project.
(2) In the event there is a difference in Financing receivables quality as referred to in paragraph (1), the Infrastructure Financing Company is required to use the lowest Financing receivables quality.

Article 37
(1) Financing receivables quality is established based on assessment factors:
a. debtor's business prospects; b. debtor's financial performance; and
c. debtor's repayment ability.
(2) Assessment of business prospects as referred to in paragraph (1) letter a includes components:
a. business growth potential; b. market conditions and the debtor's position in competition;
c. management quality and labor issues;
d. support from the group or affiliates; and e. efforts made by the debtor to maintain the environment.
(3) Assessment of financial performance as referred to in paragraph (1) letter b includes components:
a. profit acquisition; b. capital structure;
c. cash flow; and
d. sensitivity to market risk
(4) Assessment of repayment ability as referred to in paragraph (1) letter c includes components:

a. accuracy of principal and interest payments, or margin/profit-sharing/remuneration for activities based on Sharia Principles; b. availability and accuracy of debtor financial information;
c. completeness of Financing documentation;
d. compliance with Financing agreements; e. appropriateness of fund usage; and f. fairness of the source of obligation payments.
(5) The assessment of Financing receivable quality is established as:
a. normal; b. special attention;
c. substandard;
d. doubtful; or e. loss.
(6) The assessment of Financing receivable quality as referred to in paragraph (1) and paragraph (5) is carried out in accordance with the Financing quality assessment guidelines as contained in the Appendix which is an integral part of this Financial Services Authority Regulation.

Article 38
(1) Financing receivable quality categorized as problematic Financing consists of Financing receivables with substandard, doubtful, and loss quality. (2) Infrastructure Financing Companies are prohibited from having Financing Receivables with problematic Financing quality categories as referred to in paragraph (1) after deducting provisions for uncollectible Financing receivables, exceeding 5% (five percent) of total Financing.

Article 39
(1) Infrastructure Financing Companies are required to calculate provisions for uncollectible Financing receivables.
(2) The calculation of provisions for uncollectible Financing receivables as referred to in paragraph (1) is established at a minimum:
a. 1% (one percent) of the balance of Financing receivables with normal quality after deducting collateral; b. 5% (five percent) of the balance of Financing receivables with special attention quality after deducting collateral;
c. 15% (fifteen percent) of the balance of Financing receivables with substandard quality after deducting collateral;
d. 50% (fifty percent) of the balance of Financing receivables with doubtful quality after deducting collateral; e. 100% (one hundred percent) of the balance of Financing receivables with loss quality after deducting collateral. (3) Infrastructure Financing Companies are required to establish provisions for uncollectible Financing receivables at a minimum as stipulated in paragraph (2) in monthly reports. (4) The value of collateral as referred to in paragraph (2) that can be calculated as a reduction of the Financing balance is established at a maximum equal to the Financing receivable balance.

Article 40
(1) Infrastructure Financing Companies are required to establish impairment loss provisions for Financing receivables in accordance with financial accounting standards. (2) The establishment of impairment loss provisions for Financing receivables as referred to in paragraph (1) is conducted for the preparation of financial reports audited by public accountants.

Article 41
(1) Infrastructure Financing Companies are required to meet Related Party Financing (BMPP) to related parties at a maximum of 25% (twenty-five percent) of the Infrastructure Financing Company's equity. (2) Related parties as referred to in paragraph (1) include:
a. individuals or business entities that are controllers of the Infrastructure Financing Company; b. business entities where the Infrastructure Financing Company acts as a controller;
c. individuals or business entities acting as controllers of business entities as referred to in letter b;
d. business entities whose control is exercised by:

1. individuals and/or business entities as referred to in letter a; or
2. individuals and/or business entities as referred to in letter c;
   e. Board of Commissioners or Board of Directors of the Infrastructure Financing Company; f. parties having family relationships up to the second degree, both horizontal and vertical:
3. from individuals who are controllers of the Infrastructure Financing Company as referred to in letter a; and/or
4. from the Board of Commissioners or Board of Directors of the Infrastructure Financing Company as referred to in letter e;
   g. boards of commissioners or directors of business entities as referred to in letters a through d; h. business entities whose boards of commissioners or directors are:
5. the Board of Commissioners or Board of Directors of the Infrastructure Financing Company; or
6. the boards of commissioners or directors of business entities as referred to in letters a through d;
   i. business entities where:
7. the Board of Commissioners or Board of Directors of the Infrastructure Financing Company as referred to in letter e acts as controllers; or
8. the boards of commissioners or directors of parties as referred to in letters a through d act as controllers; and
   j. business entities having financial dependence on the Infrastructure Financing Company and/or parties as referred to in letters a through i.

Article 42
(1) Infrastructure Financing Companies are required to meet Related Party Financing (BMPP) to 1 (one) debtor at a maximum of 40% (forty percent) of the Infrastructure Financing Company's equity. (2) Infrastructure Financing Companies are required to meet Related Party Financing (BMPP) to 1 (one) debtor group at a maximum of 50% (fifty percent) of the Infrastructure Financing Company's equity.

(3) If an Infrastructure Financing Company obtains a business license for less than 1 (one) month, the equity basis for calculating BMPP as referred to in paragraph (1) and paragraph (2) is the equity in the financial reports submitted at the time of the business license application. (4) If a debtor has control relationships with other debtors through ownership, management, and/or financial relationships including:
a. the debtor is a controller of other debtors; b. 1 (one) party is a controller of multiple debtors;
c. the debtor has financial dependence on other debtors;
d. the debtor issues guarantees to take over and/or settle part or all of other debtors' obligations if the other debtors fail to meet their obligations (default) to the Infrastructure Financing Company; and/or e. the boards of commissioners and/or directors of the debtor become boards of commissioners and/or directors of other debtors, the debtor is classified as a member of a debtor group as referred to in paragraph (2). (5) Regulations regarding debtor groups as referred to in paragraph (4) do not apply to:
a. State-Owned Enterprises and/or Regional-Owned Enterprises; b. State-Owned Enterprise and/or Regional-Owned Enterprise holdings including their subsidiaries.

Article 43
The equity basis for calculating BMPP as referred to in Article 41 paragraph (1) and Article 42 paragraph (1) is the equity in the Infrastructure Financing Company's latest monthly report before financing is disbursed.

Part Four
Assessment of Profitability Factors
Article 44
Assessment of profitability factors as referred to in Article 29 paragraph (5) letter c includes at least:
a. profitability performance; b. profitability sources; and
c. profitability sustainability of the Infrastructure Financing Company.

Part Five
Assessment of Capital Factors
Article 45
Assessment of capital factors as referred to in Article 29 paragraph (5) letter d includes at least:
a. capital adequacy ratio; and b. capital management.

Article 46
(1) Financing Companies are required to meet a capital adequacy ratio of at least 10% (ten percent).
(2) The capital adequacy ratio as referred to in paragraph (1) is the ratio between adjusted capital and adjusted assets.
(3) Further regulations regarding the calculation method for the capital adequacy ratio are established by the Financial Services Authority.

CHAPTER X
REPORTING
Part One
Annual Reports
Article 47
(1) Infrastructure Financing Companies are required to submit annual reports consisting of:
a. annual financial reports audited by public accountants; and b. management reports, in printed form and electronic copies to the Financial Services Authority no later than April 30 of the following year. (2) Annual financial reports as referred to in paragraph (1) letter a must be prepared based on the calendar year. (3) Annual financial reports as referred to in paragraph (1) letter a must be prepared in accordance with financial accounting standards and prepared in Indonesian Rupiah.

Part Two
Monthly Reports
Article 48
(1) Infrastructure Financing Companies are required to submit monthly reports to the Financial Services Authority.
(2) In the event that an Infrastructure Financing Company has a Sharia Business Unit (UUS), the Infrastructure Financing Company is required to submit monthly UUS reports to the Financial Services Authority. (3) Regulations regarding monthly reports as referred to in paragraph (1) and paragraph (2) are governed by Financial Services Authority regulations regarding monthly reports of non-bank financial service institutions.

Part Three
Changes to Specific Articles of Association
Article 49
(1) Infrastructure Financing Companies are required to report specific changes to the Articles of Association to the Financial Services Authority no later than 15 (fifteen) working days since approval and/or receipt of the notification acceptance letter from the competent authority. (2) Specific changes to the Articles of Association as referred to in paragraph (1) include:
a. changes to the name of the Infrastructure Financing Company; b. changes to the objectives and business activities of the Infrastructure Financing Company;
c. reduction of paid-up capital; and/or
d. increase of paid-up capital.
(3) Reporting name changes of the Infrastructure Financing Company as referred to in paragraph (2) letter a must be submitted by the Board of Directors accompanied by documents:
a. copies of the Articles of Association amendment along with proof of approval from the competent authority; and b. photocopies of the new tax identification number (NPWP) of the Infrastructure Financing Company. (4) Reporting changes to objectives and business activities of the Infrastructure Financing Company as referred to in paragraph (2) letter b must be submitted by the Board of Directors accompanied by documents copies of the Articles of Association amendment along with proof of approval from the competent authority.

(5) Reporting reductions in paid-up capital for Infrastructure Financing Companies as referred to in paragraph (2) letter c must be submitted by the Board of Directors accompanied by documents copies of the Articles of Association amendment along with proof of approval from the competent authority. (6) Increases in paid-up capital as referred to in paragraph (2) letter d are prohibited except in the form of:
a. cash deposits; b. conversion of retained earnings;
c. conversion of loans; and/or
d. stock dividends.
(7) Reporting increases in paid-up capital for Infrastructure Financing Companies as referred to in paragraph (2) letter d must be submitted by the Board of Directors accompanied by documents:
a. copies of the Articles of Association amendment along with proof of notification acceptance from the competent authority; b. copies of the Minutes of the General Meeting of Shareholders;
c. proof of paid-up capital increase, consisting of:

1. photocopies of proof of paid-up capital settlement from shareholders and photocopies of proof of placement of paid-up capital in the name of the Infrastructure Financing Company at:
   a) commercial banks, Sharia commercial banks, or Sharia business units of commercial banks in Indonesia for Infrastructure Financing Companies; or b) Sharia commercial banks or Sharia business units of commercial banks in Indonesia for Infrastructure Financing Companies whose entire business activities are based on Sharia Principles; and legalized by the receiving bank, in the event that paid-up capital increases are made in the form of cash deposits;
2. financial reports of the Infrastructure Financing Company audited by public accountants before the capital increase, if the paid-up capital increase is made in the form of conversion of retained earnings, conversion of loans, and/or stock dividends; and
3. annual business plan and steps of the Infrastructure Financing Company in the use of increased paid-up capital.
   (8) In the event that an Infrastructure Financing Company is a public company or trades its shares on the stock exchange, the obligation to submit reports on changes in shareholders as referred to in paragraph (2) letter e only applies if there are changes in Major Shareholders (PSP).

Part Four
Changes to Directors, Board of Commissioners, DPS, and Shareholders
Article 50
(1) In the event that an Infrastructure Financing Company makes changes to:
a. members of the Board of Directors; b. members of the Board of Commissioners, and/or
c. members of the DPS,
it is required to report to the Financial Services Authority no later than 15 (fifteen) working days since the date of receipt of proof of the notification acceptance letter from the competent authority. (2) Reporting changes to members of the Board of Directors, Board of Commissioners, and/or members of the DPS of the Infrastructure Financing Company as referred to in paragraph (1) must be submitted by the Board of Directors by attaching copies of the Minutes of the General Meeting of Shareholders regarding the appointment of members of the Board of Directors, members of the Board of Commissioners, and/or members of the DPS along with proof of the notification acceptance letter from the competent authority.

Article 51
(1) In the event that an Infrastructure Financing Company makes changes to Shareholders, the Infrastructure Financing Company is required to report to the Financial Services Authority no later than 15 (fifteen) working days since the date of receipt of proof of the notification acceptance letter from the competent authority. (2) Reporting changes to Shareholders of the Infrastructure Financing Company as referred to in paragraph (1) must be submitted by the Board of Directors by attaching copies of the Minutes of the General Meeting of Shareholders approving the ownership change, along with the notification acceptance letter from the competent authority.

Part Five
Reporting of Address Changes
Article 52
(1) Infrastructure Financing Companies are required to report changes to the head office and/or branch addresses in writing to the Financial Services Authority no later than 10 (ten) working days since the date of implementation of the change. (2) Reporting changes to the head office and/or branch addresses as referred to in paragraph (1) must be submitted by the Board of Directors accompanied by proof of ownership or control of the new office building showing the office address of the Company along with photos of the exterior of the building and photos of the interior and room layout.

CHAPTER XI
PROHIBITIONS
Article 53
Infrastructure Financing Companies are prohibited from:
a. directly collecting funds from the public in the form of checking accounts, savings, and/or other forms equivalent to public fund collection; and/or b. issuing promissory notes, except as guarantees for the issuance of debt instruments to creditors.

CHAPTER XII
SUPERVISION
Article 54
(1) The Financial Services Authority conducts risk-based supervision of Infrastructure Financing Companies.
(2) For risk-based supervision as referred to in paragraph (1), the Financial Services Authority conducts direct examinations of Infrastructure Financing Companies based on:
a. Financial Services Authority Regulations regarding direct examinations of non-bank financial service institutions; and b. Financial Services Authority Regulations regarding the assessment of the health level of non-bank financial service institutions.

CHAPTER XIII
ESTABLISHMENT OF SUPERVISION STATUS
Article 55
(1) The Financial Services Authority establishes the supervision status of Infrastructure Financing Companies.
(2) The supervision status of Infrastructure Financing Companies as referred to in paragraph (1) includes:
a. supervision status 1; b. supervision status 2; or
c. supervision status 3.

Article 56
(1) Infrastructure Financing Companies are established in supervision status 2 as referred to in Article 55 paragraph (2) letter b if the Infrastructure Financing Company is assessed to have potential difficulties endangering business continuity. (2) Infrastructure Financing Companies are assessed to have potential difficulties endangering business continuity as referred to in paragraph (1) if the capital adequacy ratio is equal to or greater than 10% (ten percent) and meets:
a. the net problematic financing ratio is more than 5% (five percent) but less than 15% (fifteen percent) of total Financing receivables; b. the Infrastructure Financing Company's health level with a composite rating of 4; and/or
c. the Infrastructure Financing Company's health level with a composite rating of 3, but there are factors with a rating of 4 or rating 5.
(3) Infrastructure Financing Companies are established by the Financial Services Authority in supervision status 2 as referred to in paragraph (1) since the date of the Financial Services Authority's notification letter. (4) Notification to Infrastructure Financing Companies as referred to in paragraph (3) includes the establishment of the Infrastructure Financing Company in supervision status 2 as referred to in paragraph (1), accompanied by the reasons for the establishment and supervisory steps or actions that must be carried out by the Infrastructure Financing Company.

Article 57
(1) In the event that an Infrastructure Financing Company is established in supervision status 2, the Infrastructure Financing Company is required to implement corrective steps in accordance with supervisory actions ordered by the Financial Services Authority. (2) Supervisory actions ordered by the Financial Services Authority as in paragraph (1):
a. restrict remuneration payments or other forms equivalent to those to members of the Board of Directors, Board of Commissioners, and/or DPS, or remuneration to related parties; b. not conduct or delay dividend distribution;
c. not conduct certain transactions with related parties and/or other parties established by the Financial Services Authority;
d. Restrict the implementation of plans for new activities; e. not conduct or restrict asset growth, and/or new fund provision; f. sell part of the assets and/or obligations of the Infrastructure Financing Company to other parties; g. not expand office networks; h. not conduct certain business activities;
i. close office networks of the Infrastructure Financing Company; and/or
j. other supervisory actions.

Article 58
In the event that an Infrastructure Financing Company is established in supervision status 2 as referred to in Article 55 paragraph (2) letter b, the Infrastructure Financing Company is required to:
a. submit action plans according to the problems faced; b. submit the realization of action plans; and/or
c. take other actions and/or report specific matters established by the Financial Services Authority.

Article 59
(1) Infrastructure Financing Companies are required to submit:
a. action plans according to the problems faced as referred to in Article 58 letter a; and b. a complete list of related parties, no later than 10 (ten) working days since the Infrastructure Financing Company is established in supervision status 2 as referred to in Article 55 paragraph (2) letter b. (2) Action plans as referred to in Article 58 letter a must include at least corrective plans according to the problems faced by the Infrastructure Financing Company along with the completion timeframe. (3) Action plans as referred to in paragraph (1) are evaluated by the Financial Services Authority no later than 5 (five) working days since the action plans are received completely.

(4) In the event that action plans are rejected, the rejection is done in writing and accompanied by reasons for rejection.
(5) Infrastructure Financing Companies are required to submit revised action plans no later than 5 (five) working days since the date of rejection notification if the submitted action plans are rejected by the Financial Services Authority. (6) Infrastructure Financing Companies are required to implement action plans that have received approval from the Financial Services Authority.

Article 60
(1) Infrastructure Financing Companies are required to submit to the Financial Services Authority the realization of action plans as referred to in Article 58 letter b, for positions at the end of each month no later than the 10th (tenth) of the following month. (2) If the 10th (tenth) date as referred to in paragraph (1) falls on a holiday, the realization of action plans must be submitted on the next working day. (3) Realization of action plans as referred to in paragraph (1) includes at least:
a. problems of the Infrastructure Financing Company; b. corrective actions taken by the Infrastructure Financing Company; and
c. implementation time of corrections as referred to in letter b.

Article 61
(1) In the event that the condition of the Infrastructure Financing Company improves and does not meet the criteria as referred to in Article 56 paragraph (2), the Infrastructure Financing Company is established as no longer being in supervision status 2 as referred to in Article 55 paragraph (2) letter b. (2) The establishment as referred to in paragraph (1) is notified in writing by the Financial Services Authority to the Infrastructure Financing Company.

Article 62
(1) If an Infrastructure Financing Company is assessed to have difficulties endangering business continuity, the Infrastructure Financing Company is established in supervision status 3 as referred to in Article 55 paragraph (2) letter c. (2) In the event that an Infrastructure Financing Company meets the criteria:
a. capital adequacy ratio less than 10% (ten percent); b. net problematic financing ratio (non-performing financing/NPF net) equal to or greater than 15% (fifteen percent) of total Financing receivables; and/or
c. the Infrastructure Financing Company's health level with a composite rating of 5,
the Infrastructure Financing Company is assessed to have difficulties endangering business continuity as referred to in paragraph (1).
(3) Infrastructure Financing Companies are established by the Financial Services Authority in supervision status 3 as referred to in paragraph (1) since the date of the Financial Services Authority's notification letter. (4) Notification to Infrastructure Financing Companies as referred to in paragraph (3) includes the establishment of the Infrastructure Financing Company in supervision status 3 as referred to in paragraph (1), accompanied by the reasons for the establishment and supervisory steps or actions that must be carried out by the Infrastructure Financing Company.

Article 63
(1) In the event that an Infrastructure Financing Company is established in supervision status 3 as referred to in Article 55 paragraph (2) letter c, the Infrastructure Financing Company is required to take corrective steps in accordance with supervisory actions ordered by the Financial Services Authority. (2) In addition to supervisory actions as referred to in Article 57 paragraph (2), the Financial Services Authority has the authority to request the Infrastructure Financing Company to:
a. increase paid-up capital; b. conduct mergers or consolidations; and/or
c. not conduct ownership changes without approval from the Financial Services Authority.
(3) In the event that the Financial Services Authority has established supervision status 3 as referred to in Article 55 paragraph (2) letter c, supervisory actions established when the Infrastructure Financing Company was in supervision status 2 as referred to in Article 57 paragraph (2) remain valid.

Article 64
(1) Infrastructure Financing Companies in supervision status 3 as referred to in Article 55 paragraph (2) letter c are required to submit to the Financial Services Authority:
a. latest financial reports consisting of balance sheet reports, income statements, cash flow statements, and administrative accounts;

b. details of the latest Financing Receivables grouped by quality;
c. the latest composite rating of the Infrastructure Financing Company's health level;
d. information and documents regarding:

1. the latest list of details of invoices and obligations of the Infrastructure Financing Company to related parties; and
2. other information required by the Financial Services Authority; and
   e. cash flow projection reports for a period of 1 (one) month ahead or based on other reporting periods, detailed daily and with frequency as determined by the Financial Services Authority. (2) Reports as referred to in paragraph (1) must be submitted to the Financial Services Authority at the latest 5 (five) working days since the Infrastructure Financing Company is placed in supervision status 3.

CHAPTER XIV
REVOCATION OF BUSINESS LICENSES

Article 65
(1) The revocation of the business license of the Infrastructure Financing Company is carried out by the Financial Services Authority.
(2) The revocation of the business license as referred to in paragraph (1) is carried out against the Infrastructure Financing Company that:
a. Dissolves in accordance with statutory regulations, due to;

1. a resolution of the General Meeting of Shareholders;
2. based on a court decision;
3. follow-up to the bankruptcy process as regulated in the law on bankruptcy and suspension of debt payment obligations;
   b. is subject to the sanction of revocation of business license;
   c. no longer constitutes an Infrastructure Financing Company; or
   d. carries out a merger or consolidation into another Infrastructure Financing Company.

Article 66
In the event that the Infrastructure Financing Company dissolves due to a resolution of the General Meeting of Shareholders or dissolves because its establishment period has expired, the liquidator must report the results of the General Meeting of Shareholders to the Financial Services Authority at the latest 20 (twenty) working days since the General Meeting of Shareholders was held, accompanied by:
a. a plan to settle the rights and obligations of the Infrastructure Financing Company, which at least contains settlement steps and details of the implementation schedule; and b. proof of notification to related parties regarding the settlement of rights and obligations of the Infrastructure Financing Company.

Article 67
(1) In the event that the Infrastructure Financing Company dissolves based on a court decision, the liquidator or solver must report the dissolution to the Financial Services Authority at the latest 20 (twenty) working days since the court decision has acquired permanent legal force. (2) The report as referred to in paragraph (1) is accompanied by a copy of the decision regarding the issuance of the business license of the Infrastructure Financing Company and the court decision stating that it has acquired permanent legal force.

Article 68
(1) An Infrastructure Financing Company that changes its business activities so that it no longer constitutes an Infrastructure Financing Company must report to the Financial Services Authority at the latest 20 (twenty) working days since the amendment to the Articles of Association obtains approval from the competent authority. (2) The report as referred to in paragraph (1) is accompanied by:
a. minutes of the General Meeting of Shareholders; b. a copy of the deed of amendment to the Articles of Association that has obtained approval from the competent authority;
c. a plan to settle the rights and obligations of the Infrastructure Financing Company, which at least contains settlement steps and details of the implementation schedule; and
d. proof of notification to related parties regarding the settlement of rights and obligations of the Infrastructure Financing Company.

Article 69
(1) Based on reports as referred to in Article 66, Article 67, or Article 68, the Financial Services Authority conducts an analysis of the feasibility of the plan to settle the rights and obligations of the Infrastructure Financing Company and the completeness of the requirement documents. (2) The Financial Services Authority is authorized to request the Infrastructure Financing Company to fulfill the provisions as referred to in Article 66, Article 67, or Article 68. (3) In the event that the Infrastructure Financing Company has fulfilled the feasibility and completeness as referred to in Article 66, Article 67, or Article 68, the Financial Services Authority carries out the revocation of the business license of the Infrastructure Financing Company.

CHAPTER XV
COMPLIANCE ENFORCEMENT

First Section
Compliance Plan

Article 70
(1) An Infrastructure Financing Company that violates the provisions as referred to in Article 11 paragraph (1) and paragraph (3), and Article 21 paragraph (2), must submit a compliance plan to the Financial Services Authority within a period of at the latest 1 (one) month calculated from the determination of the violation by the Financial Services Authority. (2) An Infrastructure Financing Company that cannot fulfill the provisions in this Financial Services Authority Regulation as a result of the implementation of government assignments as referred to in Article 2 paragraph (1), must submit a compliance plan at the latest 1 (one) month since notification by the Financial Services Authority. (3) The compliance plan as referred to in paragraph (1) must at least contain a plan to be carried out by the Company for the fulfillment of the provisions, accompanied by a specific time period required to fulfill the provisions as referred to in paragraph (1). (4) The time period of the compliance plan as referred to in paragraph (3) for violations as referred to in paragraph (1) is limited to at the latest 6 (six) months. (5) The compliance plan as referred to in paragraph (1) and paragraph (2) must first obtain approval from the Financial Services Authority. (6) The Infrastructure Financing Company must implement the compliance plan as referred to in paragraph (1) and paragraph (2) that has been approved by the Financial Services Authority.

Second Section
Administrative Sanctions

Article 71
(1) An Infrastructure Financing Company that violates the provisions as referred to in Article 2 paragraph (3) and paragraph (6), Article 3 paragraph (2), Article 4 paragraph (1) letter u, Article 6 paragraph (1), Article 7 paragraph (4), Article 8 paragraph (1) and paragraph (2), Article 9 paragraph (3) and paragraph (4), Article 10 paragraph (1) and paragraph (4), Article 11 paragraph (2), paragraph (4), paragraph (5), and paragraph (6), Article 12 paragraph (1) and paragraph (2), Article 13, Article 18, Article 19 paragraph (1) and paragraph (2), Article 20, Article 21 paragraph (1) and paragraph (3), Article 23, Article 24 paragraph (1), Article 25 paragraph (2) and paragraph (3), Article 26 paragraph (1), Article 27 paragraph (1), paragraph (2), paragraph (5), and paragraph (6), Article 28 paragraph (2) and paragraph (3), Article 29 paragraph (1), paragraph (2), paragraph (3), and paragraph (4), Article 31 paragraph (2), Article 32 paragraph (1) and paragraph (4), Article 33 paragraph (1) and paragraph (3), Article 35, Article 36, Article 38 paragraph (2), Article 39 paragraph (1) and paragraph (3), Article 40 paragraph (1), Article 41 paragraph (1), Article 42 paragraph (1) and paragraph (2), Article 46 paragraph (1), Article 47, Article 48 paragraph (1) and paragraph (2), Article 49 paragraph (1) and paragraph (6), Article 50 paragraph (1), Article 51 paragraph (1), Article 52 paragraph (1), Article 53, Article 56 paragraph (4), Article 58, Article 59 paragraph (1), and paragraph (5), Article 60 paragraph (1) and paragraph (2), Article 62 paragraph (4), Article 64, Article 70 paragraph (1), paragraph (2), and paragraph (6) of this Financial Services Authority Regulation is subject to administrative sanctions in the form of a written warning. (2) An Infrastructure Financing Company that violates the provisions as referred to in Article 3 paragraph (2), Article 4 paragraph (1) letter u, and Article 21 paragraph (3) is subject to administrative sanctions in the form of an administrative fine of Rp100,000,000.00 (one hundred million rupiah). (3) An Infrastructure Financing Company that violates the provisions of Article 19 paragraph (2), Article 20, Article 24 paragraph (1), Article 47 paragraph (1), Article 49 paragraph (1), Article 50 paragraph (1), Article 51 paragraph (1), Article 52 paragraph (1), Article 59 paragraph (1) and paragraph (5), Article 60 paragraph (1) and paragraph (2), Article 64 paragraph (2), and Article 70 paragraph (1) and paragraph (2) is subject to administrative sanctions in the form of an administrative fine of Rp500,000.00 (five hundred thousand rupiah) per day of delay and at most Rp25,000,000.00 (twenty-five million rupiah). (4) In the event that the Infrastructure Financing Company violates the provisions as referred to in paragraph (1) but the violation has been corrected, the Infrastructure Financing Company is subject to a written warning sanction that ends automatically. (5) In the event that the
Infrastructure Financing Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the written warning sanction.

Article 72
(1) An Infrastructure Financing Company that violates the provisions as referred to in Article 57 paragraph (1), Article 59 paragraph (6), and Article 63 paragraph (1) of this Financial Services Authority Regulation is subject to administrative sanctions in a graduated manner consisting of:
a. written warning; b. suspension of business activities; and
c. revocation of business license.
(2) The written warning as referred to in paragraph (1) letter a is given 3 (three) times with a validity period of each at the latest 1 (one) month; (3) In the event that before the expiration of the validity period of the written warning as referred to in paragraph (2), the Infrastructure Financing Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the written warning sanction. (4) In the event that after the expiration of the validity period of the third written warning as referred to in paragraph (2), the Infrastructure Financing Company still does not fulfill the provisions as referred to in paragraph (1), the Financial Services Authority imposes a sanction of suspension of business activities for a period of at the latest 6 (six) months and may be extended at most 1 (one) time for a period of at the latest 6 (six) months. (5) An Infrastructure Financing Company subject to the sanction of suspension of business activities as referred to in paragraph (4) is prohibited from carrying out business activities. (6) In the event that before the expiration of the validity period of the sanction of suspension of business activities as referred to in paragraph (4), the Infrastructure Financing Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the sanction of suspension of business activities. (7) In the event that after the expiration of the validity period of the sanction of suspension of business activities as referred to in paragraph (4), the Infrastructure Financing Company still does not fulfill the provisions as referred to in paragraph (1), or the Infrastructure Financing Company violates the provisions as referred to in paragraph (5), the Financial Services Authority imposes a sanction of revocation of business license.

Second Section
Reduction of Health Level Assessment Results and Re-assessment of Principal Parties

Article 73
(1) In the event that the Financial Services Authority has imposed administrative sanctions as referred to in Article 71 and the Infrastructure Financing Company does not fulfill the provisions causing the imposition of administrative sanctions, the Financial Services Authority may:
a. reduce the health level assessment results; and/or b. conduct a re-assessment of the principal parties.
(2) The re-assessment of principal parties as referred to in paragraph (1) is carried out in accordance with the Financial Services Authority Regulation regarding re-assessment for principal parties of financial service institutions.

CHAPTER XVI
TRANSITIONAL PROVISIONS

Article 74
(1) Business licenses for Infrastructure Financing Companies that have been issued before the establishment of this Financial Services Authority Regulation are declared to remain valid. (2) Approval letters for the formation of Sharia Business Units (UUS) that have been issued before the establishment of this Financial Services Authority Regulation are declared as approval for the formation of UUS. (3) Any approvals that have been given by the Financial Services Authority that have been submitted before this Financial Services Authority Regulation is established are declared to remain valid. (4) PSPs, members of the Board of Directors, members of the Board of Commissioners, and/or members of the Sharia Supervisory Board (DPS) at the Infrastructure Financing Company that have:
a. held the position as PSP; or b. served as members of the Board of Directors, members of the Board of Commissioners, and/or members of the DPS, at the time this Financial Services Authority Regulation becomes effective, may continue to serve as PSPs, members of the Board of Directors, members of the Board of Commissioners, and/or members of the DPS. (5) Members of the Board of Directors, members of the Board of Commissioners, and/or members of the DPS at the Infrastructure Financing Company as referred to in paragraph (5) must undergo competency and propriety assessments before the extension of their position or transfer of position at the Infrastructure Financing Company is carried out. (6) Financing disbursement activities that have been carried out before this Financial Services Authority Regulation is promulgated may continue until the end of the Financing agreement period and shall not be used as the basis for calculating the Maximum Financing Limit (BMPP).

CHAPTER XVII
CLOSING PROVISIONS

Article 75
Provisions regarding the implementation of health level assessments as referred to in Article 29 of this Financial Services Authority Regulation are declared to become effective 1 (one) year since this Financial Services Authority Regulation is promulgated.

Article 76
At the time this Financial Services Authority Regulation becomes effective, provisions regarding Infrastructure Financing Companies are subject to this Financial Services Authority Regulation.

Article 77
This Financial Services Authority Regulation becomes effective on the date of its promulgation.

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

To ensure everyone knows it, orders the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on 27 October 2020
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Promulgated in Jakarta on 10 November 2020
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2020 NUMBER 249

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 46 /POJK.05/2020
REGARDING
INFRASTRUCTURE FINANCING COMPANIES

I. GENERAL
In accordance with the authority regulated in Law Number 21 of 2011 concerning the Financial Services Authority, the Financial Services Authority is authorized to regulate and supervise Infrastructure Financing Companies. Infrastructure Financing Companies are financial institutions in the form of limited liability companies established to support financing for infrastructure facility development other than financing sourced from the State Budget (APBN) or financing from the banking sector. The existence of Infrastructure Financing Companies is expected to contribute to further narrowing the gap in financing needs for infrastructure projects which are currently assessed to be quite large. Furthermore, to support Government policy in meeting the increasing needs for national development financing, Infrastructure Financing Companies are expected to accelerate the provision of infrastructure financing and carry out the provision of other development financing besides infrastructure based on Government assignments. The aforementioned assignments need to be supported by a legal umbrella, specifically the expansion of assignment mandates for the Infrastructure Financing Company sector. In relation to this matter, the Financial Services Authority establishes a Financial Services Authority Regulation regarding Infrastructure Financing Companies. Through the issuance of this Financial Services Authority Regulation, it is hoped that the regulation and supervision of the Financial Services Authority over Infrastructure Financing Companies can be more optimal. The drafting of this Financial Services Authority Regulation is an effort to refine the material in previously applicable regulations, which among others regulate: business activities, legal form, ownership, paid-in capital at establishment, foreign ownership, organizational structure, business licensing, branch offices, Sharia business units, funding sources, investments, fund placements, health level assessments, reporting, prohibitions, risk-based supervision, determination of supervision status, revocation of business licenses, and compliance enforcement.

II. ARTICLE BY ARTICLE

Article 1
Sufficiently clear.

Article 2
Paragraph (1)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Sufficiently clear.
Letter d
Sufficiently clear.
Letter e
The term "government assignment" refers to assignments documented either in statutory regulations or decisions established by the central government, in accordance with statutory regulations.

Paragraph (2)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
The term "debtor" refers to the party that signs a written agreement with the Infrastructure Financing Company, including those based on Sharia Principles.

Paragraph (3)
The term "receives assignment" refers to the time when the Infrastructure Financing Company receives assignment orders based on statutory regulations or decisions established by the central government.

Paragraph (4)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Sufficiently clear.
Letter d
The term "swap market" is commonly known as the swap market.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Letter a
The term "adl" refers to placing something only in its proper place, giving something only to those entitled, and treating something according to its position. The term "tawazun" refers to covering the balance of material and spiritual aspects, private and public aspects, the financial sector and the real sector, business and social aspects, and the balance of utilization and sustainability aspects. The term "maslahah" refers to 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. The term "alamiyah" refers to actions that can be carried out by, with, and for all parties concerned (stakeholders) without distinguishing ethnicity, religion, race, and class, in accordance with the spirit of universal mercy (rahmatan lil alamin).

Letter b
The term "does not contain prohibited matters" refers to things such as riba (usury/interest), maisir (gambling/speculation), gharar (uncertainty/deception), zalim (oppression/injustice), risywah (bribery), maksiat (sin/violation of moral law), and haram objects. The term "riba" refers to the illegal addition of income, for example in transactions exchanging similar goods that are not equal in quality, quantity, and time of delivery (fadhl), or in lending transactions requiring the facility recipient to return funds received exceeding the principal loan due to the passage of time (nasi'ah). The term "maisir" refers to transactions dependent on uncertain and speculative conditions. The term "gharar" refers to transactions where the object is unclear, not owned, existence is unknown, or cannot be delivered at the time of transaction unless otherwise regulated in Sharia. The term "zalim" refers to transactions that cause injustice to other parties. The term "risywah" refers to bribery acts in the form of money, facilities, or other forms that violate the law as an effort to obtain facilities or ease in a transaction. The term "maksiat" refers to human actions that violate moral laws contrary to Sharia Principles. The term "haram object" refers to transactions whose objects are prohibited in Sharia.

Article 3
Sufficiently clear.

Article 4
Paragraph (1)
Sufficiently clear.

Paragraph (2)
The term "statutory regulations" includes, among others, Presidential Regulations regarding government cooperation with business entities in the provision of infrastructure.

Article 5
Sufficiently clear.

Article 6
Sufficiently clear.

Article 7
Paragraph (1)
The term "equity" refers to equity based on applicable financial accounting standards in Indonesia.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Article 8
Sufficiently clear.

Article 9
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
The term "not fulfilled due to market conditions" refers to a state beyond control occurring in the market, for example, sharp correction in revenue or profit growth of the Infrastructure Financing Company related to disruptions in the smoothness of debtor repayment obligations due to volatile macroeconomic conditions. The term "business plan" refers to the business plan as referred to in the Financial Services Authority Regulation regarding business plans of non-bank financial service institutions and its implementing regulations.

Article 10
Paragraph (1)
The term "direct foreign ownership" refers to the form of share ownership of the Infrastructure Financing Company by foreign legal entities. The term "indirect foreign ownership" refers to the form of share ownership of the Infrastructure Financing Company by Indonesian legal entities, which are partially or wholly owned by foreign legal entities. In the event of changes in share composition among shareholders, this provision must still be fulfilled. Example: PT ABC PPI ownership composition is as follows:
Direct foreign ownership = 20% (Foreign Legal Entity 2) Indirect foreign ownership = 50% x 30% = 15% (Foreign Legal Entity 1) Total foreign ownership 20% (Foreign Legal Entity 2) + 15% (Foreign Legal Entity 1) = 35% WNI = Indonesian Citizen BHA = Foreign Legal Entity BHI = Indonesian Legal Entity

Paragraph (2)
The term "public company" refers to a company that conducts a public offering of shares in accordance with statutory regulations in the capital market sector.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

WNI 1
50%
BHA 1
50%
BHI 1
30%
WNI 2
50%
BHA 2
20%
PT ABC PPI

Article 11
Paragraph (1)
Letter a
Sufficiently clear.
Letter b
The minimum number of 2 (two) members of the Board of Commissioners may count independent commissioners.
Letter c
Sufficiently clear.
Letter d
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
The term "other companies" refers to Infrastructure Financing Companies or companies operating outside the business field as an Infrastructure Financing Company.

Paragraph (6)
Sufficiently clear.

Article 12
Sufficiently clear.

Article 13
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
The term "having good internal control" includes the separation of functions and fulfillment of statutory regulations.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
The term "having expertise in Infrastructure Financing and project financing" includes, among others, having educational background, training, and/or experience in fields relevant to Infrastructure Financing and/or project financing.

Paragraph (6)
Sufficiently clear.

Article 14
Sufficiently clear.

Article 15
Sufficiently clear.

Article 16
Sufficiently clear.

Article 17
Sufficiently clear.

Article 18
The term "carrying out business activities" refers to having carried out the disbursement of Infrastructure Financing to debtors, including the marketing/offering process of Financing products to potential debtors.

Article 19
Paragraph (1)
Letter a
The term "business plan" refers to the business plan as referred to in the Financial Services Authority Regulation regarding business plans of non-bank financial service institutions and its implementing regulations. Letter b Sufficiently clear. Letter c Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Article 20
Letter a
Sufficiently clear.
Letter b
The term "related parties" includes, among others, debtors and/or creditors, in relation to branch office operations.

Article 21
Sufficiently clear.

Article 22
Sufficiently clear.

Article 23
The term "carrying out business activities" refers to the form of having carried out the disbursement of Financing based on Sharia Principles to debtors, including the process of

marketing/offering of Financing products to potential prospective debtors.
Article 24
Paragraph (1)
Letter a
Clear enough.
Letter b
The term “related party” includes debtors and/or creditors in relation to UUS operations.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
Clear enough.
Article 25
Paragraph (1)
Letter a
The term “securities” refers to securities issued through a public offering mechanism based on capital market regulations, including securities issued not through a public offering mechanism such as medium term notes (MTN). Letter b Number 1 Clear enough. Number 2 Clear enough. Number 3 Clear enough.

Number 4
The term “multilateral organization” includes international financial institutions and operates in the field of development.
Number 5
Clear enough.
Letter c
Clear enough.
Letter d
Clear enough.
Letter e
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Article 26
Paragraph (1)
Clear enough.
Paragraph (2)
PT ABC Infrastructure Financing, which has equity of Rp2 trillion and paid-up capital of Rp1 trillion, receives total funding as follows:

1. loans received from Bank XYZ amounting to Rp200 billion;
2. issuance of bonds amounting to Rp500 billion;
3. subordinated loans received from shareholders amounting to Rp500 billion;
4. issuance of medium term notes amounting to Rp200 billion.
   PT ABC Infrastructure Financing also has an investment in PT DEF amounting to Rp100 billion. Thus, the gearing ratio of PT ABC Infrastructure Financing is as follows:

Gearing Ratio = (bank loans + bond issuance + subordinated loans + medium term note issuance) :
(equity + subordinated loans) - investment Gearing Ratio Gearing Ratio Gearing Ratio = (Rp200 billion + Rp500 billion + Rp500 billion

• Rp200 billion) : (Rp2 trillion + Rp500 billion) – Rp100 billion
  PT ABC Infrastructure Financing Gearing Ratio Gearing Ratio = 0,58 Paragraph (3) Clear enough.
  Paragraph (4)
  Clear enough.
  Article 27
  Paragraph (1)
  Clear enough.
  Paragraph (2)
  Clear enough.
  Paragraph (3)
  Clear enough.
  Paragraph (4)
  The term “equity” refers to equity based on applicable financial accounting standards in Indonesia.
  Paragraph (5)
  Clear enough.
  Paragraph (6)
  Clear enough.
  Article 28
  Paragraph (1)
  The term “bank” refers to conventional banks and Sharia banks.
  The term “collective investment contract effects (KIK)” includes examples such as KIK mutual funds, KIK real estate investment funds, and/or KIK infrastructure investment funds. The term “rating agency” refers to a rating agency registered with the Financial Services Authority. Paragraph (2) Clear enough. Paragraph (3) Clear enough.
  Article 29
  Paragraph (1)
  Clear enough.
  Paragraph (2)
  Clear enough.
  Paragraph (3)
  The term “control” refers to an action aimed at influencing the management and/or policies of a subsidiary company in any way, whether directly or indirectly. Paragraph (4) Clear enough. Paragraph (5) Letter a Clear enough. Letter b Clear enough. Letter c The term “profitability” refers to the ability to generate profit over a certain period, including aiming to measure the level of management effectiveness in operating Infrastructure Financing Companies. Letter d The term “capitalization” refers to the ability to maintain adequate capital as an element used as a reserve to address possible risks over 14 assets owned by Infrastructure Financing Companies. Paragraph (6) Clear enough.
  Article 30
  Clear enough.
  Article 31
  Paragraph (1)
  Clear enough.
  Paragraph (2)
  Clear enough.
  Paragraph (3)
  Letter a
  The term “transparency” refers to openness in the decision-making process and openness in the disclosure and provision of relevant information regarding Infrastructure Financing Companies, which is easily accessible by stakeholders in accordance with regulations in the field of Infrastructure Financing as well as standards, principles, and practices for healthy Infrastructure Financing business operations. Letter b The term “accountability” refers to the clarity of functions and the implementation of accountability of the Infrastructure Financing Company’s organs so that the performance of Infrastructure Financing Companies can operate transparently, fairly, effectively, and efficiently. Letter c The term “responsibility” refers to the conformity of Infrastructure Financing Company management with regulations in the field of Infrastructure Financing and ethical values as well as standards, principles, and practices for healthy Infrastructure Financing business operations. Letter d The term “independence” refers to the state of Infrastructure Financing Companies managed independently and professionally and free from conflicts of interest and influence or pressure from any party that is not in accordance with regulations in the field of Infrastructure Financing and ethical values as well as standards, principles, and practices for healthy Infrastructure Financing business operations. Letter e The term “fairness and equity” refers to equality, balance, and justice in fulfilling the rights of stakeholders arising from agreements, regulations, and ethical values as well as standards, principles, and practices for healthy Infrastructure Financing business operations.
  Article 32
  Paragraph (1)
  Clear enough.
  Paragraph (2)
  Clear enough.
  Paragraph (3)
  The term “specific actions to improve the implementation of Good Corporate Governance” includes:

1. increasing the number of Directors and/or Commissioners in the event that the existing number of Directors and/or Commissioners is deemed ineffective and inefficient; and

2. adding information regarding transparency of share ownership of less than 5% (five percent) by Directors at Infrastructure Financing Companies where such Directors serve and/or at other companies located domestically and abroad, in the event that such Directors are proven to exercise control.
   Paragraph (4)
   Clear enough.
   Article 33
   Paragraph (1)
   Clear enough.
   Paragraph (2)
   Clear enough.
   Paragraph (3)
   Letter a
   The term “credit risk” refers to the risk resulting from the failure of debtors and/or other parties as transaction counterparties to fulfill their obligations to Infrastructure Financing Companies. Letter b The term “market risk” refers to risks on balance sheet and administrative account positions, including derivative transactions, resulting from changes in market conditions. Letter c The term “liquidity risk” refers to the risk resulting from the inability of Infrastructure Financing Companies to fulfill maturing obligations/liabilities from cash flow funding sources, and/or from high-quality liquid assets that can be pledged/converted into cash easily, without disrupting operations and financial conditions of Infrastructure Financing Companies. Letter d The term “operational risk” refers to risks resulting from inadequate and/or non-functional internal processes, human error, system failures, and/or external events that affect the operations of Infrastructure Financing Companies. Letter e The term “legal risk” refers to risks arising from legal claims and/or weaknesses in legal aspects that may arise, among others, due to the absence of underlying regulations or weaknesses in agreements, such as unmet contract validity requirements or inadequate collateral. Letter f The term “reputational risk” refers to risks resulting from a decrease in stakeholder trust stemming from negative perceptions of Infrastructure Financing Companies. Letter g The term “strategic risk” refers to risks resulting from Infrastructure Financing Companies’ inaccuracies in making decisions and/or implementing strategic decisions, as well as failures in anticipating changes in the business environment. Letter h The term “compliance risk” refers to risks arising from Infrastructure Financing Companies’ failure to comply with and/or implement regulations and applicable rules. Paragraph (4) Clear enough.

Article 34
Clear enough.
Article 35
Steps that Infrastructure Financing Companies can take to maintain good Financing receivables include the application of adequate standard operating procedures and periodic monitoring of Financing receivables quality.
Article 36
Paragraph (1)
The term “debtors financed by multiple creditors” includes debtors receiving syndicated credit/financing facilities from multiple creditors. Paragraph (2) Clear enough.
Article 37
Clear enough.
Article 38
Clear enough.
Article 39
Clear enough.
Article 40
Clear enough.
Article 41
Paragraph (1)
Clear enough.
Paragraph (2)
The term “controller” refers to parties who have the ability to influence the management and/or policies of a company, either directly or indirectly.
Article 42
Clear enough.
Article 43
Clear enough.
Article 44
Clear enough.
Article 45
Clear enough.
Article 46
Paragraph (1)
Clear enough.
Paragraph (2)
The term “adjusted capital” refers to equity from Infrastructure Financing Companies based on applicable financial accounting standards.
The term “adjusted assets” refers to the value of Financing receivables assets after considering risk weights.
Paragraph (3)
Clear enough.
Article 47
Paragraph (1)
Letter a
Clear enough.
Letter b
The term “management report” refers to non-financial reports containing information including reports from the Board of Directors, Board of Commissioners, and DPS, company business activity profile reports, Good Corporate Governance, corporate risk management, and corporate social responsibility reports. Paragraph (2) Clear enough. Paragraph (3) Clear enough.
Article 48
Clear enough.
Article 49
Clear enough.
Article 50
Clear enough.
Article 51
Clear enough.
Article 52
Clear enough.
Article 53
Letter a
The term “other forms equivalent to public fund collection” includes insurance premiums and pension fund contributions.
Letter b
Clear enough.
Article 54
Clear enough.

Article 55
Paragraph (1)
Clear enough.
Paragraph (2)
Letter a
The term “supervision status 1” refers to supervision of Infrastructure Financing Companies that do not meet the criteria as Infrastructure Financing Companies assessed to have potential difficulties endangering business continuity or do not meet the criteria as Infrastructure Financing Companies assessed to be experiencing difficulties endangering business continuity. Letter b The term “supervision status 2” refers to an increased supervision process against Infrastructure Financing Companies that were previously in supervision status 1, with the aim of restoring the conditions of Infrastructure Financing Companies. Actions to restore the conditions of Infrastructure Financing Companies are taken by establishing supervision (supervisory actions) appropriate to the problems of Infrastructure Financing Companies. Letter c The term “supervision status 3” refers to an increased supervision process against Infrastructure Financing Companies that were previously in supervision 1 or supervision 2, with the aim of restoring the conditions of Infrastructure Financing Companies. Actions to restore the conditions of Infrastructure Financing Companies are taken by establishing supervision (supervisory actions) appropriate to the problems of Infrastructure Financing Companies.
Article 56
Clear enough.
Article 57
Paragraph (1)
Clear enough.
Paragraph (2)
Letter a
The term “related party” here is the same as related parties in the BMPP calculation.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
Clear enough.
Letter e
Clear enough.
Letter f
“The term ‘other parties’ includes banks or non-bank financial service institutions.”
Letter g
Clear enough.
Letter h
Clear enough.
Letter i
Clear enough.
Letter j
The term “other supervisory actions” includes improvements to risk management policies or procedures.

Article 58
Clear enough.
Article 59
Paragraph (1)
The term “related party” here is the same as related parties in the BMPP calculation.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough
Paragraph (4)
Clear enough
Paragraph (5)
Clear enough
Paragraph (6)
Clear enough
Article 60
Clear enough.
Article 61
Clear enough.
Article 62
Clear enough.
Article 63
Clear enough.
Article 64
Paragraph (1)
Letter a
Clear enough.
Letter b
Clear enough.

Letter c
Clear enough.
Letter d
Clear enough.
Letter e
The term “other reporting periods” refers to reporting periods other than monthly reports required for Infrastructure Financing Companies based on regulations. Paragraph (2) Clear enough.
Article 65
Clear enough.
Article 66
Letter a
Clear enough.
Letter b
The term related parties include debtors and/or creditors in relation to the operations of Infrastructure Financing Companies.
Article 67
Clear enough.
Article 68
Paragraph (1)
Clear enough.
Paragraph (2)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.

Letter d
The term related parties include debtors and/or creditors in relation to the operations of Infrastructure Financing Companies.
Article 69
Clear enough.
Article 70
Clear enough.
Article 71
Clear enough.
Article 72
Clear enough.
Article 73
Paragraph (1)
Letter a
Clear enough.
Letter b
The term “main parties” refers to PSP, the Board of Directors, Board of Commissioners, and/or DPS of Infrastructure Financing Companies.
Paragraph (2)
Clear enough.
Article 74
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
To fulfill the provisions of Article 2 paragraph (5) and Article 21 paragraph (2) of this Financial Services Authority Regulation, Infrastructure Financing Companies as mentioned may still carry out some of their business activities based on Sharia Principles. Paragraph (4) Clear enough. Paragraph (5) Clear enough. Paragraph (6) Clear enough.
Article 75
Clear enough.
Article 76
Clear enough.
Article 77
Clear enough.
SUPPLEMENT TO THE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6576

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 46 /POJK.05/2020
ON
INFRASTRUCTURE FINANCING COMPANIES (PPI)
GUIDELINES FOR ASSESSING THE QUALITY OF FINANCING OF INFRASTRUCTURE FINANCING COMPANIES (PPI) DEBTOR BUSINESS PROSPECTS COMPONENTS QUALITY SMOOTH SPECIAL ATTENTION LESS LIQUID DOUBTFUL BAD Potential growth business Business activities have good growth potential. Business activities have limited growth potential. Business activities show very limited growth potential or no growth. Business activities decline.  Business continuity is highly doubted, and difficult to recover.  Business activities are likely to cease. Market conditions and debtor’s position in competition  Stable market and not affected by changes in economic conditions.  Limited competition, including strong position in the market.  Good market position, not much affected by changes in economic conditions.  Market share comparable to competitors.  Operating at nearly optimum capacity.  Market is affected by changes in economic conditions.  Market position is good but many competitors, but can recover if implementing  Market is highly affected by changes in economic conditions.  Competition is very intense and operational company is experiencing  Loss of market share in line with deteriorating economic conditions.  Operations are not continuous.

 Operating at optimum capacity. business strategies.
 Not operating at optimum capacity. serious problems.
 Capacity is not at a level that supports operations.
Management quality and labor issues
 Very good management.
 Adequate workforce and never recorded labor disputes or strikes, or experienced minor labor disputes/strikes but resolved well.
 Good management.
 Workforce is generally adequate, experienced labor disputes/strikes that were resolved well but there is still a possibility of recurrence.  Management is adequate.  Overstaffed and there are labor disputes/ strikes with impacts that are material to debtor’s business activities.  Management is less experienced.  Overstaffed in large numbers so as to cause unrest and there are labor disputes/ strikes with impacts that are material to debtor’s business activities.  Management is very weak.  Overstaffed in large numbers causing unrest and there are labor disputes/ strikes with material impacts on debtor’s business activities. Support from group or affiliates Affiliate or group companies are stable and supportive of business. Affiliate or group companies are stable and do not have burdensome impacts on debtors. Relationships with affiliate or group companies are starting to have burdensome impacts on debtors. Affiliate or group companies have had burdensome impacts on debtors. Affiliate companies are very detrimental to debtors. Efforts made by debtor to maintain environmental protection. Environmental management efforts are good and achieve results at least meeting minimum requirements as regulated in applicable laws and regulations. Environmental management efforts are less good and have not met minimum requirements as regulated in applicable laws and regulations. Environmental management efforts are less good and have not met minimum requirements as regulated in applicable laws and regulations, with deviations that are material. Debtors have not implemented meaningful environmental management efforts or have made efforts but have not met minimum requirements as regulated in applicable laws and regulations, with material deviations. Debtors have not implemented meaningful environmental management efforts or have made efforts but have not met minimum requirements as regulated in applicable laws and regulations, and have the possibility of being sued in court. FINANCIAL PERFORMANCE OF DEBTORS COMPONENTS QUALITY SMOOTH SPECIAL ATTENTION LESS LIQUID DOUBTFUL BAD Profit Acquisition High and stable profit acquisition. Profit acquisition is adequate but has potential to decline. Low profit acquisition.  Very small or negative profit.  Operational losses are financed by asset sales.  Experiencing large losses.  Debtors are unable to fulfill all obligations and business activities cannot be maintained. Capital Structure Strong capitalization. Adequate capitalization and owners have the ability to provide additional capital if needed. Debt-to-equity ratio is quite high. High debt-to-equity ratio. Very high debt-to-equity ratio. Cash Flow  Strong liquidity and working capital.  Cash flow analysis shows that debtors can fulfill principal payment obligations as well as interest or margin/profit share/  Generally good liquidity and working capital.  Cash flow analysis shows that although debtors can fulfill principal payment obligations as well
as interest or margin/profit share/ ujroh for activities  Poor liquidity and limited working capital.  Cash flow analysis shows that debtors can only pay interest or margin/profit share/ujroh for  Very low liquidity.  Cash flow analysis shows inability to pay principal and interest or margin/profit share/ujroh for activities  Liquidity difficulties.  Cash flow analysis shows that debtors are unable to cover production costs.  New additional financing is used to meet

ujroh for activities based on Sharia Principles without additional funding support. based on Sharia Principles but there are indications of certain issues that if not addressed will affect future payments activities based on Sharia Principles and part of the principal. based on Sharia Principles.  New additional financing is used to meet maturing obligations. maturing obligations, materially. Sensitivity to market risks The amount of portfolios sensitive to changes in foreign exchange rates and interest rates is relatively small or has been hedged well. Some portfolios are sensitive to changes in foreign exchange rates and interest rates but are still controlled. Business activities are affected by changes in foreign exchange rates and interest rates. Business activities are threatened due to changes in foreign exchange rates and interest rates. Business activities are threatened due to fluctuations in foreign exchange rates and interest rates. DEBTOR’S ABILITY TO PAY COMPONENTS QUALITY SMOOTH SPECIAL ATTENTION LESS LIQUID DOUBTFUL BAD Timeliness of principal and interest payments, or margin/profit share ujroh for activities based on Sharia Principles Payments are on time, no arrears, or if arrears occur, they do not exceed 30 (thirty) days, and in accordance with financing requirements. There are arrears on principal and/or interest or margin/profit share ujroh for activities based on Sharia Principles that have exceeded 30 (thirty) days up to 90 (ninety) days. There are arrears on principal and/or interest or margin/profit share/ujroh for activities based on Sharia Principles that have exceeded 90 (ninety) days up to 120 (one hundred twenty) days. There are arrears on principal and/or interest or margin/profit share/ujroh for activities based on Sharia Principles that have exceeded 120 (one hundred twenty) days up to 180 (one hundred eighty) days. There are arrears on principal and/or interest or margin/profit share/ujroh for activities based on Sharia Principles that have exceeded 180 (one hundred eighty) days. Availability and accuracy of debtor’s financial information  Good relationship between debtor and PPI, debtors always submit financial information  Sufficiently good relationship between debtor and PPI and debtors always submit financial information Relationship between debtor and PPI has deteriorated and financial information cannot be trusted Relationship between debtor and PPI has further deteriorated and financial information is unavailable Relationship between debtor and PPI is very poor and financial information is unavailable

regularly and accurately.

• There are recent financial reports and the results of PPI analysis of the financial reports/financial information submitted by the debtor.
  regularly and still accurate.

• There are recent financial reports and the results of PPI analysis of the financial reports/financial information submitted by the debtor.
  or there are no PPI analysis results of the financial reports/financial information submitted by the debtor. or cannot be trusted. or cannot be trusted. Completeness of financing documentation Financing documentation is complete. Financing documentation is complete. Financing documentation is incomplete. Financing documentation is incomplete. No Financing documentation. Compliance with financing agreement No violation of the financing agreement. Violation of the financing agreement that is not principal. Violation of the principal financing requirements that is quite principal. Principal violation of the principal requirements in the financing agreement. Very principal violation of the principal requirements in the financing agreement. Appropriateness of fund usage

• Use of funds
  in accordance with the financing application.

• The amount and type
  of facilities provided are in accordance with needs.

• Financing extension is in accordance with
  the debtor's needs analysis.

• Use of funds
  is less in accordance with the financing application, but the amount is not material.

• The amount and type
  of facilities provided are larger than needs, but the amount is not material. Financing extension is less in accordance with the debtor's needs analysis.

• Use of funds
  is less in accordance with the financing application, with an amount that is quite material.

• The amount and type
  of facilities provided are larger than needs, with an amount that is quite material.

• Financing
  extension is not in accordance with the debtor's needs analysis

• Use of funds
  is less in accordance with the financing application, with an amount that is material.

• The amount and type
  of facilities provided are larger than needs, with an amount that is material.

• Financing
  extension is not in accordance with the needs analysis of the debtor (extensions

• Most of the
  use of funds is not in accordance with the financing application.

• The amount and type
  of facilities provided are larger than needs with an amount that is very material.

• Financing
  extension without debtor needs analysis.

(financing extension to hide financial difficulties). financing extension to hide financial difficulties), with a deviation that is quite material. Reasonableness of the source of payment of obligations

• Source
  of payment can be clearly identified and agreed upon by PPI and the debtor .
• Source
  of payment is in accordance with the structure/type of financing.
• Reasonable repayment
  scheme (including the provision of a grace period).
• Foreign currency income
  is sufficient to support the repayment of foreign currency financing.
• The source
  of payment can be identified and agreed upon by PPI and the debtor .
• Source of payment
  is less in accordance with the structure/type of financing.
• Repayment scheme
  that is quite reasonable (including the provision of a grace period).
• Foreign currency income
  is less sufficient to support the repayment of foreign currency financing.
• Payment
  comes from a source other than the agreed one.
• Source
  of payment is less in accordance with the structure/type of financing in a quite material way.
• Repayment scheme
  that is less reasonable and there is a provision of a grace period that is not in accordance with the type of financing.
• Foreign currency income
  is not sufficient to support the repayment of foreign currency financing, in a quite material way.
• Source
  of payment is not known, while the source that was agreed is no longer possible.
• Source
  of payment is less in accordance with the structure/type of financing in a material way.
• Repayment
  scheme that is less reasonable and there is a provision of a grace period that is not in accordance with the type of financing with a duration that is quite long.
• Foreign currency
  income is not sufficient to support
• There is no
  source of payment that is possible.
• Source
  of payment is not in accordance with the structure/type of financing.
• Repayment scheme
  that is not reasonable and there is a provision of a grace period that is not in accordance with the type of financing with a duration that is quite long.
• There is no
  foreign currency receipt to support the repayment of foreign currency financing.

This copy is in accordance with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja repayment of foreign currency financing in a material way.
Determined in Jakarta on October 27, 2020
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO