Financial Services Authority Regulation Number 5 of 2022 Concerning Credit Information Management Institutions

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 5 /POJK.03/2022
CONCERNING
CREDIT INFORMATION MANAGEMENT INSTITUTIONS
BY THE GRACE OF GOD THE ALMIGHTY
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that to encourage the growth of credit and national financial inclusion, particularly in the micro, small, and medium enterprise sector, support from a credit information management institution is needed that produces diverse, comprehensive credit information with added value, thereby requiring the management and development of credit information through an expansion of the scope of credit or financing data and other data sourced from financial and non-financial institutions; b. that for the management and development of credit information, a credit information management institution is needed that is able to conduct business sustainably through institutional arrangement, implementation of good corporate governance, strengthening protection for stakeholders, and increasing compliance with applicable laws and regulations and general ethical values in the implementation of operational activities;
c. that with the development of the dynamics of the credit information management institution industry, it is necessary to replace the Financial Services Authority Regulation Number 42/POJK.03/2019 concerning Credit Information Management Institutions to accommodate the increased competitiveness and contribution of credit information management institutions;
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 Credit Information Management Institutions;

Recalling:

Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1992 Number 31, Supplement to the State Gazette of the Republic of Indonesia Number 3472) as amended by Law Number 10 of 1998 concerning Amendment to Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1998 Number 182, Supplement to the State Gazette of the Republic of Indonesia Number 3790);
Law Number 21 of 2008 concerning Sharia Banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette of the Republic of Indonesia Number 4867);
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 CREDIT INFORMATION MANAGEMENT INSTITUTIONS.

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

Credit Information Management Institution, hereinafter abbreviated as LPIP, is a rating agency that collects and processes credit or financing data and other data to generate credit information.
Fund Provision Facility is the provision of funds received by debtors or customers, either in rupiah or foreign currency, in the form of credit or financing, securities, administrative account transactions, and other facilities that can be equated with them, including those based on Sharia principles in accordance with applicable laws and regulations.
Debtor or Customer is any party, whether an individual or a legal entity, that obtains one or more Fund Provision Facilities and/or financial obligations.
Credit or Financing Data is data regarding the condition of the Debtor's or Customer's Fund Provision Facility.
Other Data is data other than Credit or Financing Data that can be used to describe the ability of a certain party to meet financial obligations, including the behavioral patterns of Debtors or Customers.
Credit Information is a product and/or service generated by LPIP in written, oral, or other methods, sourced from Credit or Financing Data and Other Data collected and processed by LPIP.
Financial Institution is an institution that conducts activities in the financial sector.
Key Party is a party that owns, manages, supervises, and/or has significant influence on LPIP.

CHAPTER II
LPIP BUSINESS ACTIVITIES
Article 2
(1) Business activities conducted by LPIP consist of:
a. collecting and processing Credit or Financing Data and/or Other Data; b. providing rating services for Debtors or Customers based on Credit or Financing Data and/or Other Data; and
c. generating Credit Information with added value based on Credit or Financing Data and/or Other Data.
(2) LPIP is prohibited from conducting business activities other than those referred to in paragraph (1).
(3) LPIP that violates the provisions as referred to in paragraph (2) shall be subject to administrative sanctions in the form of a written reprimand.
(4) In the event that LPIP has been subject to administrative sanctions in the form of a written reprimand as referred to in paragraph (3) and continues to violate the provisions as referred to in paragraph (2), LPIP shall be subject to administrative sanctions in the form of:
a. temporary suspension of certain business activities; and/or b. cessation of the provision of Credit or Financing Data from the Financial Services Authority. (5) In the event that LPIP has been subject to administrative sanctions as referred to in paragraph (4) and continues to violate the provisions as referred to in paragraph (2), LPIP may be subject to administrative sanctions in the form of revocation of the business license.

Article 3
Credit Information generated by LPIP as referred to in Article 2 paragraph (1) letter c, both individual and aggregate, shall at least contain:
a. character and track record of Debtors or Customers; b. ability of Debtors or Customers to meet obligations;
c. statistical information for planning, business development, and policy determination;
d. information for performance measurement and monitoring of the risk profile of Debtors or Customers; and e. other information that can be used to assess prospective Debtors or Customers.

CHAPTER III
LPIP INSTITUTIONAL STRUCTURE
First Section
Legal Entity and Capital
Article 4
(1) Every party conducting activities as an LPIP must obtain a business license from the Financial Services Authority.
(2) The legal entity of LPIP must be a limited liability company.

Article 5
(1) The paid-up capital for establishing an LPIP is set at a minimum of IDR 200,000,000,000.00 (two hundred billion rupiah).
(2) The source of paid-up capital for establishing an LPIP as referred to in paragraph (1):
a. does not originate from loans or financing facilities from banks and/or other parties; and b. does not originate from the proceeds of criminal acts and for the purposes of money laundering, terrorism financing, and financing of the proliferation of weapons of mass destruction. (3) The source of funds for increasing LPIP capital deposits can be in cash or other assets that can be utilized as supporting infrastructure for LPIP. (4) During LPIP operations, LPIP is required to comply with provisions regarding:
a. capital as referred to in paragraph (1); and b. sources of funds as referred to in paragraph (2) and paragraph (3).

Article 6
LPIP is required to maintain net capital value at 50% (fifty percent) of the minimum paid-up capital.

Article 7
LPIP is required to reserve a portion of the company's profit for the improvement of technology, infrastructure, and human resources.

Second Section
Implementation of Governance
Article 8
(1) LPIP is required to implement good corporate governance in all its business activities at all levels or tiers of the organization.
(2) The implementation of good corporate governance as referred to in paragraph (1) must at least be manifested in the form of:
a. implementation of duties and responsibilities of the Board of Directors; b. implementation of duties and responsibilities of the Board of Commissioners;
c. handling of conflicts of interest;
d. implementation of risk management, compliance, internal audit, external audit functions, and operational guidelines related to cooperation with LPIP members; e. LPIP annual business plan; and f. transparency of financial and non-financial conditions through publication. (3) LPIP is required to submit a report on the implementation of governance as part of the annual report. (4) Further provisions regarding the implementation of governance as referred to in paragraph (2) and the scope of the governance implementation report as referred to in paragraph (3) shall be determined by the Financial Services Authority.

Third Section
Assessment of Competence and Fit and Properness of LPIP
Article 9
(1) Prospective Key Parties must obtain approval from the Financial Services Authority before carrying out actions, duties, and functions as Key Parties.
(2) Key Parties as referred to in paragraph (1) consist of:
a. Controlling Key Parties; and b. Managing Key Parties.
(3) To provide approval as referred to in paragraph (1), the Financial Services Authority conducts a competence and fit and proper assessment of prospective Key Parties. (4) The competence and fit and proper assessment is conducted to assess that prospective Key Parties as referred to in paragraph (2) meet the requirements:
a. integrity and financial feasibility for prospective Controlling Key Parties; and b. integrity, financial reputation, and competence for prospective Managing Key Parties. (5) Further provisions regarding the procedures for competence and fit and proper assessment as referred to in paragraph (3) and paragraph (4) shall be determined by the Financial Services Authority.

Article 10
Integrity requirements for Key Parties as referred to in Article 9 paragraph (4) must at least:
a. be competent to perform legal acts; b. have good ethics and morals;
c. have a commitment to comply with laws and regulations and support Financial Services Authority policies;
d. have a commitment to the healthy development of LPIP; e. maintain the confidentiality and security of Debtor or Customer data and information; and f. not be included as parties prohibited from becoming Key Parties.

Article 11
Financial reputation requirements for Managing Key Parties as referred to in Article 9 paragraph (4) letter b must at least be proven by:
a. not having non-performing credit and/or financing; and b. never having been declared bankrupt and/or never having been a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was declared guilty of causing a company to be declared bankrupt within the last 5 (five) years before nomination.

Article 12
Financial feasibility requirements for Controlling Key Parties as referred to in Article 9 paragraph (4) letter a must at least be proven by:
a. having a financial reputation as referred to in Article 11; b. having financial capacity supporting the development of LPIP business; and
c. having a commitment to take necessary measures if LPIP faces financial difficulties.

Article 13
Competence requirements for Managing Key Parties as referred to in Article 9 paragraph (4) letter b must at least:
a. have knowledge and/or experience in fields relevant to the position; and b. have the ability to manage and develop LPIP strategically.

Fourth Section
Shareholders
Article 14
(1) Shareholders of LPIP must be legal entities.
(2) The form of legal entity of LPIP shareholders as referred to in paragraph (1) is in accordance with applicable laws and regulations.
(3) The legal entity as referred to in paragraph (1) is owned by:
a. Indonesian legal entities; or b. Indonesian legal entities in partnership with foreign legal entities.
(4) In the event that the legal entity of LPIP shareholders as referred to in paragraph (1) is a public company and trades its shares on the stock exchange, the provisions as referred to in paragraph (3) do not apply. (5) Foreign legal entities as referred to in paragraph (3) letter b must have experience in the Credit Information Management industry for at least 3 (three) years.

Article 15
(1) Share ownership of LPIP by each shareholder as referred to in Article 14 paragraph (1) is at most 51% (fifty-one percent) of the paid-up capital.
(2) The maximum share ownership limit as referred to in paragraph (1) also applies to ownership based on inter-shareholder connections.
(3) In the event that LPIP shareholders as referred to in Article 14 paragraph (1) also hold shares in other LPIPs, the total share ownership across all LPIPs owned is at most 51% (fifty-one percent). (4) In the event that the legal entity of LPIP shareholders as referred to in Article 14 paragraph (1) is partially owned by foreign parties, the following provisions apply:
a. total ownership by 1 (one) or more foreign parties in 1 (one) LPIP is limited to at most 20% (twenty percent); and b. total ownership by 1 (one) foreign party in more than 1 (one) LPIP is limited to at most 20% (twenty percent). (5) Further provisions regarding LPIP ownership shall be determined by the Financial Services Authority.

Fifth Section
Board of Directors, Board of Commissioners, and Executive Officers of LPIP
Article 16
(1) LPIP is required to have Board of Directors members with a minimum of 3 (three) people.
(2) At least 50% (fifty percent) of the Board of Directors members as referred to in paragraph (1) must be Indonesian citizens.
(3) At least 1 (one) Board of Directors member as referred to in paragraph (1) must have knowledge and/or experience in the Credit Information Management industry. (4) Board of Directors members may only hold concurrent positions as directors, members of the Board of Commissioners, or executive officers of companies, organizations, or non-profit institutions.

Article 17
(1) LPIP is required to have Board of Commissioners members with a minimum of 2 (two) people and a maximum equal to the number of Board of Directors members. (2) At least 50% (fifty percent) of the Board of Commissioners members as referred to in paragraph (1) must be Indonesian citizens.

Article 18
(1) LPIP administers every appointment, change, and/or dismissal of executive officers.
(2) Administration of appointment, change, and/or dismissal of executive officers as referred to in paragraph (1) must at least include:
a. latest 4x6 cm passport-sized photo; b. photocopy of identity proof in accordance with applicable laws and regulations;
c. decision letter of appointment, change, and/or dismissal of executive officers; and
d. curriculum vitae.

Sixth Section
Foreign Workforce
Article 19
(1) LPIP may utilize foreign workforce for positions as Board of Directors members, Board of Commissioners members, executive officers, experts, or consultants. (2) Foreign workforce as referred to in paragraph (1) must meet the requirements:
a. meet qualification expertise; b. not hold positions in Financial Institutions located in Indonesia and/or outside Indonesia; and
c. have knowledge of the Indonesian economy, language, and culture.
(3) LPIP is prohibited from utilizing foreign workforce in the following fields of duty:
a. personnel; and b. compliance.
(4) Utilization of foreign workforce must obtain approval from the Financial Services Authority.

Article 20
(1) In the utilization of foreign workforce as executive officers, experts, or consultants as referred to in Article 19 paragraph (1), LPIP is required to:
a. first consider the availability of local experts or consultants for the required fields and expertise; b. provide 2 (two) local companion personnel for each foreign workforce member; and
c. observe applicable laws and regulations regarding labor.
(2) Foreign workforce serving as Board of Directors and/or Board of Commissioners members, in addition to meeting the provisions as referred to in Article 19 paragraph (2), are subject to the requirements and provisions for Board of Directors and/or Board of Commissioners members in this Financial Services Authority Regulation.

Article 21
(1) Plans for utilization, changes in utilization, and tenure of foreign workforce must be implemented in accordance with applicable laws and regulations regarding labor. (2) LPIP is required to submit plans for utilization and plans for changes in utilization of foreign workforce as referred to in paragraph (1) as part of the annual business plan to obtain approval from the Financial Services Authority. (3) Plans for utilization of foreign workforce as referred to in paragraph (2) must at least include:
a. name and information regarding foreign workforce, accompanied by documents at least:

photocopy of passport; and
curriculum vitae and 1 (one) latest 4x6 cm passport-sized photo, 1 (one) sheet;
b. reasons for using foreign workforce and reasons for not/not yet using local workforce in the fields of duty held by foreign workforce;
c. fields of duty and positions or titles to be filled, including scope and competence;
d. tenure; and e. knowledge transfer program plan.
(4) In the event that changes in utilization of foreign workforce as executive officers, experts, or consultants are to be made, LPIP must submit plans and reasons for changes in utilization of foreign workforce to the Financial Services Authority.

Seventh Section
Administrative Sanctions
Article 22
(1) LPIP that does not comply with provisions as referred to in Article 5 paragraph (4), Article 6, Article 7, Article 8 paragraph (1), paragraph (3), Article 9 paragraph (1), Article 14 paragraph (1), paragraph (5), Article 16 paragraph (1), paragraph (2), Article 17, Article 19 paragraph (3), paragraph (4), Article 20 paragraph (1), Article 21 paragraph (1), and/or paragraph (2), shall be subject to administrative sanctions in the form of a written reprimand. (2) In the event that LPIP has been subject to administrative sanctions in the form of a written reprimand as referred to in paragraph (1) and has not complied with provisions as referred to in Article 8 paragraph (3), Article 9 paragraph (1), Article 16 paragraph (1), paragraph (2), Article 17, Article 19 paragraph (4), Article 20 paragraph (1), Article 21 paragraph (1), and/or paragraph (2) and continues to violate provisions as referred to in Article 19 paragraph (3), LPIP may be subject to administrative sanctions in the form of:
a. temporary suspension of certain business activities; b. cessation of the provision of Credit or Financing Data from the Financial Services Authority; and/or
c. inclusion of management in the list of parties prohibited from becoming Key Parties.
(3) In the event that LPIP has been subject to and has not followed up on administrative sanctions in the form of a written reprimand as referred to in paragraph (1) within 20 (twenty) working days from the date of issuance of the written reprimand, regarding violations of provisions as referred to in Article 5 paragraph (4), Article 6, Article 7, Article 8 paragraph (1), Article 14 paragraph (1), and/or paragraph (5) that cause significant disruption to LPIP operations, LPIP may be subject to administrative sanctions in the form of a second written reprimand. (4) In the event that LPIP has been subject to and has not followed up on administrative sanctions in the form of a second written reprimand as referred to in paragraph (3) within 20 (twenty) working days from the date of issuance of the second written reprimand, LPIP shall be subject to administrative sanctions in the form of a third written reprimand. (5) In the event that LPIP has been subject to and has not followed up on administrative sanctions in the form of a third written reprimand as referred to in paragraph (4) within 20 (twenty) working days from the date of issuance of the third written reprimand, LPIP shall be subject to administrative sanctions in the form of temporary suspension of certain business activities and/or cessation of the provision of Credit or Financing Data from the Financial Services Authority for a certain period determined by the Financial Services Authority. (6) In the event that LPIP does not follow up on the third written reprimand within a certain period determined by the Financial Services Authority as referred to in paragraph (5), LPIP may be subject to administrative sanctions in the form of revocation of the business license.

CHAPTER IV
LPIP LICENSING
First Section
General
Article 23
The license for the establishment and conduct of LPIP business activities consists of:
a. principle approval; and b. business license.

Second Section
Principle Approval
Article 24
(1) Applications for principle approval as referred to in Article 23 letter a are submitted in writing to the Financial Services Authority, at least by one prospective shareholder, accompanied by:
a. draft deed of establishment of the limited liability company, including draft articles of association; b. ownership data in the form of a list of prospective shareholders with details of each share ownership up to the ultimate owner and controller for companies in the form of limited liability companies;
c. list of composition of prospective Board of Directors and Board of Commissioners members;
d. plan for organizational structure and human resources; e. annual business plan for the first 3 (three) years; f. medium and long-term strategic plan; g. draft information technology system to be used; h. draft data requirements;
i. draft internal control system guidelines and guidelines regarding the implementation of corporate governance;
j. operational policies and procedures; k. proof of capital deposit of at least 100% (one hundred percent) of the minimum paid-up capital as referred to in Article 5 paragraph (1), in the form of a photocopy of a deposit receipt at a bank in Indonesia and in the name of "Commissioners of the Financial Services Authority q.q. prospective shareholders for the establishment of the respective LPIP" with a note that disbursement can only be carried out after obtaining written approval from the Commissioners of the Financial Services Authority; and
l. a statement letter from prospective LPIP shareholders, that the capital deposit as referred to in letter k:

does not originate from loans or financing facilities in any form from banks and/or other parties; and
does not originate from the proceeds of criminal acts and for the purposes of money laundering, terrorism financing, and financing of the proliferation of weapons of mass destruction.
(2) Further provisions regarding the details of application documents as referred to in paragraph (1) shall be determined by the Financial Services Authority.

Article 25
(1) Approval or rejection of principle approval applications is given by the Financial Services Authority within a maximum of 60 (sixty) working days after complete application documents are received. (2) In the event that application documents as referred to in paragraph (1) are incomplete or do not comply with provisions or based on the assessment of the Financial Services Authority, prospective LPIP shareholders must submit completion and adjustment of application documents no later than 20 (twenty) working days from the date of notification from the Financial Services Authority. (3) In the event that prospective LPIP shareholders do not meet the completion and adjustment of application documents as referred to in paragraph (2), prospective LPIP shareholders are deemed to have cancelled the principle approval application as referred to in Article 24 paragraph (1).

(4) In granting approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. research and analysis of the application documents; b. assessment of potential analysis and feasibility;
c. assessment of capability and propriety;
d. research into the source of capital deposit funds; and e. other analyses based on the Financial Services Authority's consideration.

(5) To support the research and analysis by the Financial Services Authority as referred to in paragraph (4), prospective shareholders submitting an application for the establishment of a Credit Information Management Institution (LPIP) must present or explain to the Financial Services Authority regarding the LPIP's development plan and strategy.

Article 26
(1) The application for principle approval of LPIP shareholders, which has been approved by the Financial Services Authority, is prohibited from:
a. being transferred to another party; and/or b. changing the composition of shareholder ownership until the business license application is approved.

(2) In the event that an LPIP transfers principle approval and changes the composition of shareholder ownership before the business license application is approved as referred to in paragraph (1), the issued principle approval becomes invalid.

Article 27
(1) Principle approval is valid for a maximum of 12 (twelve) months from the date the principle approval is issued.

(2) A party that has obtained principle approval cannot conduct business activities as an LPIP before obtaining a business license as an LPIP.

(3) If by the time limit as referred to in paragraph (1) the party that has obtained principle approval has not submitted a business license application to the Financial Services Authority, the issued principle approval becomes invalid.

(4) A party as referred to in paragraph (3) may re-submit an application to obtain principle approval after 12 (twelve) months from the end of the time limit as referred to in paragraph (1).

(5) A party that does not obtain principle approval from the Financial Services Authority may re-submit an application to obtain principle approval after 12 (twelve) months from the date of rejection by the Financial Services Authority.

Third Section
Business License

Article 28
(1) An application to obtain a business license as referred to in Article 23 letter b is submitted in writing to the Financial Services Authority by the board of directors of an LPIP that has obtained principle approval, at least accompanied by:
a. the deed of establishment of a limited liability company, containing the articles of association that have been approved by the competent authority; b. a list of shareholders along with details of each share ownership up to the ultimate owner and controller for the limited liability company legal entity;
c. a list of the composition of the board of directors and the board of commissioners;
d. documents as referred to in Article 24 paragraph (1) letter d, letter e, letter f, letter h, letter i, and letter j, if changes occur; e. the information technology system architecture to be used; and f. proof of operational readiness.

(2) Further provisions regarding the details of application documents as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 29
(1) Approval or rejection of a business license application is granted by the Financial Services Authority within a maximum of 40 (forty) working days after the application documents are received completely and supporting infrastructure is adequate for the implementation of LPIP operational activities.

(2) In granting approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. research and analysis of the application documents; b. assessment of capability and propriety, if changes occur;
c. research into operational readiness;
d. assessment of the information technology system to be used based on the architecture as referred to in Article 28 paragraph (1) letter e; and e. other analyses based on the Financial Services Authority's consideration.

(3) The Financial Services Authority announces LPIPs that have obtained a business license from the Financial Services Authority on the Financial Services Authority's website.

Article 30
(1) An LPIP that has obtained a business license from the Financial Services Authority must conduct business activities within a maximum of 20 (twenty) working days calculated from the date the business license is issued.

(2) The implementation of business activities as referred to in paragraph (1) must be reported to the Financial Services Authority by the board of directors within a maximum of 10 (ten) working days after the date of implementation of business activities.

(3) In the event of force majeure, the time limit as referred to in paragraph (1) may be extended based on OJK approval.

(4) If by the time limit as referred to in paragraph (1) the LPIP has not conducted business activities, the issued business license becomes invalid.

(5) An LPIP whose business license has become invalid as referred to in paragraph (3) may re-submit an application to obtain principle approval, after 12 (twelve) months from the end of the time limit as referred to in paragraph (1).

Article 31
An LPIP that does not obtain a business license from the Financial Services Authority may submit an application again to obtain principle approval, after 12 (twelve) months from the date of rejection by the Financial Services Authority.

CHAPTER V
CHANGES IN PAID-UP CAPITAL, SHAREHOLDERS, BOARD OF DIRECTORS MEMBERS, AND BOARD OF COMMISSIONERS MEMBERS

First Section
Increase in Paid-Up Capital

Article 32
(1) An increase in paid-up capital in an LPIP must obtain approval from the Financial Services Authority.

(2) An LPIP's increase in paid-up capital to the Financial Services Authority as referred to in paragraph (1):
a. must meet the provisions regarding share ownership limits as referred to in Article 15; and b. is submitted in writing, accompanied by a statement letter from the LPIP shareholder that the change in paid-up capital:

does not originate from loans or financing facilities from banks and/or other parties; and
does not originate from the proceeds of criminal acts and for the purposes of money laundering, terrorism financing, and financing of the proliferation of weapons of mass destruction.

(3) Approval or rejection of the application as referred to in paragraph (2) letter b is granted by the Financial Services Authority within a maximum of 30 (thirty) working days after the application documents are received completely.

Second Section
Changes in Shareholders, Board of Directors Members, and Board of Commissioners Members

Article 33
(1) Changes to the ownership composition of an LPIP must obtain approval from the Financial Services Authority.

(2) An application to obtain approval for changes in ownership composition as referred to in paragraph (1) is submitted in writing, accompanied by ownership data in the form of a list of prospective shareholders along with details of each share ownership.

(3) Approval or rejection of the application as referred to in paragraph (2) is granted by the Financial Services Authority within a maximum of 30 (thirty) working days after the application documents are received completely.

(4) The Financial Services Authority's approval as referred to in paragraph (3) is valid for a maximum of 60 (sixty) working days from the date of the Financial Services Authority's approval.

Article 34
(1) In the event that an LPIP will make changes to the composition of the board of directors and/or the board of commissioners, prospective board of directors and/or board of commissioners members must first obtain approval from the Financial Services Authority.

(2) An application to obtain approval as referred to in paragraph (1) is submitted by the LPIP to the Financial Services Authority and must be accompanied by documents as referred to in Article 24 paragraph (1) letter c.

(3) In addition to meeting the provisions in this Financial Services Authority Regulation, prospective board of directors and/or board of commissioners members as referred to in paragraph (1) must meet the requirements in accordance with applicable laws and regulations.

(4) Approval or rejection of the submission of prospective board of directors and/or board of commissioners members as referred to in paragraph (1) is granted by the Financial Services Authority within a maximum of 30 (thirty) working days after the application documents are received completely.

(5) The Financial Services Authority's approval as referred to in paragraph (4) is valid for a maximum of 60 (sixty) working days from the date of the Financial Services Authority's approval.

Article 35
Prospective board of directors and/or board of commissioners members who have not obtained approval from the Financial Services Authority are prohibited from carrying out duties and functions as board of directors and/or board of commissioners members even if they have obtained approval from the general meeting of shareholders.

Article 36
(1) In the event that there are board of directors and/or board of commissioners members who will resign and/or step down, the LPIP must ensure that the requirements as referred to in Article 16 and Article 17 remain met.

(2) The dismissal and/or resignation of board of directors and/or board of commissioners members as referred to in paragraph (1) must be reported in writing by the LPIP to the Financial Services Authority no later than 10 (ten) working days from the effective date of dismissal and/or resignation.

Article 37
(1) In the event that an LPIP will conduct a merger, consolidation, or acquisition with another LPIP, each LPIP must obtain approval from the Financial Services Authority.

(2) An application to obtain approval for merger, consolidation, or acquisition as referred to in paragraph (1) must receive approval from the general meeting of shareholders.

(3) An application to obtain approval for merger, consolidation, or acquisition as referred to in paragraph (1) is submitted in writing by the LPIP to the Financial Services Authority accompanied by data on the plan for merger, consolidation, or acquisition.

Article 38
LPIPs are required to submit reports to the Financial Services Authority regarding:
a. an increase in the amount of paid-up capital as referred to in Article 32 no later than 10 (ten) working days after the date the paid-up capital increase process is completed; b. changes in ownership composition that have received Financial Services Authority approval as referred to in Article 33 paragraph (3) no later than 10 (ten) working days after the date the general meeting of shareholders is held;
c. changes in business group structure up to the ultimate owner and controller no later than 10 (ten) working days after the effective date of the change;
d. the appointment of board of directors and/or board of commissioners members who have received Financial Services Authority approval as referred to in Article 34 paragraph (4) no later than 10 (ten) working days from the date of the general meeting of shareholders; and e. the implementation of merger, consolidation, or acquisition as referred to in Article 37 no later than 10 (ten) working days after the effective date of the merger, consolidation, or acquisition.

Article 39
Further provisions regarding the procedures for increasing the amount of paid-up capital as referred to in Article 32, changes in ownership composition as referred to in Article 33, changes in the composition of board of directors and/or board of commissioners members as referred to in Article 34, and/or the implementation of merger, consolidation, or acquisition as referred to in Article 37 are determined by the Financial Services Authority.

Third Section
Reassessment of Principal Parties and Executive Officials of LPIPs

Article 40
(1) The Financial Services Authority may conduct a reassessment against:
a. Principal Parties and/or executive officials of LPIPs; and b. Principal Parties and/or executive officials who no longer own, manage, supervise, and/or have influence over LPIPs at the time the reassessment is conducted.

(2) Reassessment of controlling Principal Parties is conducted in the event of indications of involvement and/or responsibility for integrity and/or financial viability issues.

(3) Reassessment of managing Principal Parties and/or executive officials is conducted in the event of indications of involvement, dual roles, and/or responsibility for integrity, financial reputation, and/or competence issues.

(4) Reassessment as referred to in paragraph (1) is conducted based on evidence, data, and/or information obtained from supervision results or other information.

(5) Reassessment as referred to in paragraph (1) is conducted with the following steps:
a. clarification of evidence, data, and/or information to the Principal Parties and/or executive officials being reassessed; b. determination and submission of the interim reassessment results to the Principal Parties and/or executive officials being reassessed;
c. response from the Principal Parties and/or executive officials being reassessed regarding the interim reassessment results; and
d. determination and notification of the final reassessment results to the Principal Parties and/or executive officials being reassessed with the following predicates:

pass; or
fail.

(6) The results of the reassessment are binding and must be complied with by the LPIP.

(7) Further provisions regarding the procedures for reassessment of controlling Principal Parties, managing Principal Parties, and/or executive officials as referred to in paragraph (2) and paragraph (3) are determined by the Financial Services Authority.

Article 41
Integrity and/or financial viability issues as referred to in Article 40 paragraph (2) consist of:
a. actions, whether direct or indirect, in the form of:
1. influencing and/or ordering managing Principal Parties and/or LPIP employees to hide and/or obscure violations of regulations, financial conditions, and/or actual transactions;
2. influencing and/or ordering managing Principal Parties and/or LPIP employees to provide unfair benefits to shareholders, Principal Parties, LPIP employees, and/or other parties that can harm or reduce LPIP profits; and/or
3. influencing and/or ordering managing Principal Parties and/or LPIP employees to commit acts violating good LPIP management principles;
b. proven to have committed criminal acts that have been decided by a court and have permanent legal force;
c. causing the LPIP to experience difficulties that endanger the continuity of the LPIP's business and/or can endanger the financial services industry;
d. not executing orders from the Financial Services Authority to perform and/or not perform certain actions; e. having non-performing loans and/or financing at financial services institutions and/or being a controller, board of directors member, board of commissioners member, or equivalent of a company that has non-performing loans and/or financing; f. proven to be declared bankrupt and/or being a shareholder, board of directors member, board of commissioners member, or equivalent, who is declared guilty causing a company to be declared bankrupt or have its business license revoked; g. not taking necessary measures when the LPIP faces capital difficulties; h. refusing to provide commitments and/or not fulfilling commitments agreed upon with the Financial Services Authority and/or the government;
i. hindering or interfering with:
1. efforts and implementation of the Financial Services Authority's authority; and/or
2. efforts from LPIP Principal Parties and/or other parties in handling LPIP issues; and/or
j. integrity and/or financial viability issues other than letters a through i that contradict applicable laws and regulations.

Article 42
Integrity, financial reputation, and/or competence issues, as referred to in Article 40 paragraph (3), consist of:
a. actions, whether direct or indirect, in the form of:
1. hiding and/or obscuring violations of regulations or financial conditions and/or actual transactions;
2. providing unfair benefits to shareholders, Principal Parties, LPIP employees, and/or other parties that can harm or reduce LPIP profits; and/or
3. committing acts violating good LPIP management principles;
b. proven to have committed criminal acts that have been decided by a court and have permanent legal force;
c. causing the LPIP to experience difficulties that endanger the continuity of the LPIP's business and/or can endanger the financial services industry;
d. not executing orders from the Financial Services Authority to perform and/or not perform certain actions; e. having non-performing loans and/or financing at financial services institutions and/or being a controller, board of directors member, board of commissioners member, or equivalent of a company that has non-performing loans and/or financing; f. proven to be declared bankrupt and/or being a shareholder, board of directors member, board of commissioners member, or equivalent, who is declared guilty causing a company to be declared bankrupt or have its business license revoked; g. not conducting strategic management for the healthy development of the LPIP; h. refusing to provide commitments and/or not fulfilling commitments agreed upon with the Financial Services Authority and/or the government;
i. hindering or interfering with:
1. efforts and implementation of the Financial Services Authority's authority; and/or
2. efforts from LPIP Principal Parties and/or other parties in handling LPIP issues; and/or
j. integrity, financial reputation, and/or competence issues other than letters a through i that contradict applicable laws and regulations.

Article 43
(1) Principal Parties and/or executive officials who are still serving and are determined with a 'pass' predicate are declared to meet the requirements to remain as Principal Parties and/or executive officials.

(2) Controlling Principal Parties determined with a 'fail' predicate because:
a. integrity issues, are prohibited from becoming:
1. controlling Principal Parties or owning shares in LPIPs and/or financial services institutions; and/or
2. managing Principal Parties and/or executive officials in LPIPs and/or financial services institutions; and/or
b. financial viability issues, are prohibited from becoming:
1. controlling Principal Parties or owning shares in LPIPs where the Principal Party undergoes reassessment; and/or
2. managing Principal Parties and/or executive officials in LPIPs where the Principal Party undergoes reassessment in the event of financial viability issues involving financial reputation.

(3) Managing Principal Parties and/or executive officials determined with a 'fail' predicate because:
a. integrity issues, are prohibited from becoming:
1. controlling Principal Parties or owning shares in LPIPs and/or financial services institutions; and/or
2. managing Principal Parties and/or executive officials in LPIPs and/or financial services institutions;
b. financial reputation issues, are prohibited from becoming:
1. controlling Principal Parties or owning shares in LPIPs where the Principal Party undergoes reassessment; and/or
2. managing Principal Parties and/or executive officials in LPIPs where the Principal Party undergoes reassessment; and/or
c. competence issues, are prohibited from becoming managing Principal Parties and/or executive officials in LPIPs where the Principal Party undergoes reassessment.

Article 44
(1) The imposition of prohibition periods against Principal Parties and/or executive officials determined with a 'fail' predicate as referred to in Article 43 paragraph (2) and/or Article 43 paragraph (3) is determined:
a. for a period of 3 (three) years for:
1. controlling Principal Parties in the event of proven actions as referred to in Article 41 letter a number 3, letter d, letter e, letter g, letter h, letter i, or letter j;
2. managing Principal Parties and/or executive officials in the event of proven actions as referred to in Article 42 letter a number 3, letter d, letter e, letter g, letter h, letter i, or letter j;
b. for a period of 5 (five) years for:
1. controlling Principal Parties in the event:
a) proven actions as referred to in Article 41 letter a number 1 or letter a number 2; or b) proven actions as referred to in Article 41 letter a number 3, letter d, letter e, letter g, letter h, letter i, or letter j, and the acts:
1) are committed repeatedly;
2) are committed cumulatively; and/or
3) are proven to benefit oneself or other parties;
2. managing Principal Parties and/or executive officials in the event:
a) proven actions as referred to in Article 42 letter a number 1 or letter a number 2; or b) proven actions as referred to in Article 42 letter a number 3, letter d, letter e, letter g, letter h, letter i, or letter j, and the acts:
1) are committed repeatedly;
2) are committed cumulatively; and/or
3) are proven to benefit oneself or other parties; or
c. for a period of 20 (twenty) years:

for controlling Principal Parties if proven to have committed actions as referred to in Article 41 letter b, letter c, or letter f;
for managing Principal Parties and/or executive officials if proven to have committed actions as referred to in Article 42 letter b, letter c, or letter f.

(2) The prohibition period as referred to in paragraph (1) is calculated from:
a. the date of the Financial Services Authority's determination letter as referred to in Article 40 paragraph (5) letter d, if it is the final result of the Financial Services Authority's reassessment; or b. the date of a court decision with permanent legal force stating that the reassessed Principal Parties and/or executive officials are proven to have committed criminal acts as referred to in Article 41 letter b and Article 42 letter b or are proven to be declared bankrupt and/or caused bankruptcy as referred to in Article 41 letter f and Article 42 letter f.

Fourth Section
Administrative Sanctions

Article 45
(1) LPIPs that do not meet the provisions as referred to in Article 32 paragraph (1), Article 33 paragraph (1), Article 34 paragraph (1), paragraph (3), Article 35, Article 36, Article 37 paragraph (1), Article 38, and/or Article 40 paragraph (6) are subject to administrative sanctions in the form of written warnings.

(2) In the event that an LPIP has been subject to administrative sanctions in the form of written warnings as referred to in paragraph (1) and has not met the provisions as referred to in Article 32 paragraph (1), Article 33 paragraph (1), Article 34 paragraph (1), paragraph (3), Article 36, Article 37 paragraph (1), and Article 38, and/or Article 40 paragraph (6) and continues to violate the provisions as referred to in Article 35, the LPIP is subject to administrative sanctions in the form of temporary suspension of certain business activities and/or suspension of the provision of Credit Data or Financing by the Financial Services Authority.

CHAPTER VI
RIGHTS AND OBLIGATIONS OF CREDIT INFORMATION AGENCIES
Article 46
(1) A Credit Information Agency (LPIP) that has obtained a business license from the Financial Services Authority may collect and process Credit or Financing Data and Other Data. (2) Credit or Financing Data and Other Data collected and processed by the LPIP as referred to in paragraph (1) are prohibited from being used other than to generate Credit Information. (3) An LPIP that, based on the results of an examination by the Financial Services Authority, does not meet the provisions as referred to in paragraph (2), shall be subject to administrative sanctions consisting of a written reprimand and a fine of Rp50,000,000.00 (fifty million rupiah) per Debtor or Customer, with a total fine amount not exceeding Rp5,000,000,000.00 (five billion rupiah).

Article 47
(1) In carrying out activities involving the collection and processing of Credit or Financing Data and Other Data as referred to in Article 46 paragraph (1), the LPIP is obligated to:
a. ensure the accuracy, validity, timeliness, security, and confidentiality of data; b. have a reliable system;
c. have operational policies and procedures set forth in written guidelines; and
d. have guidelines that must be complied with by every party using Credit Information.
(2) An LPIP that does not meet the provisions as referred to in paragraph (1) shall be subject to administrative sanctions consisting of a written reprimand. (3) In the event that an LPIP has been subjected to administrative sanctions consisting of a written reprimand as referred to in paragraph (2) and has not yet met the provisions as referred to in paragraph (1), the LPIP shall be subject to administrative sanctions consisting of the temporary suspension of certain business activities and/or the cessation of the provision of Credit or Financing Data by the Financial Services Authority.

Article 48
(1) Operational policies and procedures as referred to in Article 47 paragraph (1) letter c must contain at least:
a. data security steps; b. access levels;
c. data change procedures;
d. information security; e. business continuity plans; f. end-user computing; g. disaster recovery plans; h. data retention;
i. monitoring of operations including audit trails;
j. procedures for providing Credit Information; and k. procedures for handling and resolving complaints.
(2) Further provisions regarding operational policies and procedures shall be determined by the Financial Services Authority.

CHAPTER VII
DATA MANAGEMENT BY CREDIT INFORMATION AGENCIES First Section Data Sources and Flow
Article 49
(1) In carrying out data collection and processing activities, the LPIP obtains Credit or Financing Data from financial information service systems.
(2) The Financial Services Authority determines the scope of Credit or Financing Data provided to the LPIP as referred to in paragraph (1).
(3) Provisions regarding the mechanism for obtaining and the scope of Credit or Financing Data as referred to in paragraph (1) shall be determined by the Financial Services Authority.

Article 50
(1) In generating Credit Information with added value, the LPIP develops data processing by adding Credit or Financing Data obtained from financial information service systems with the following scope:
a. information and/or data from Financial Institutions that are not reporters of the financial information service system; and b. information and/or Other Data from non-Financial Institutions. (2) The LPIP may provide big data solution services and macroeconomic factor-based models upon request from users. (3) To support the provision of services as referred to in paragraph (2), the LPIP may add sources of Other Data from both Financial Institutions and non-Financial Institutions.

Article 51
(1) LPIP business activities with the addition of information scope as referred to in Article 50 paragraph (1) letter a must be fulfilled no later than 6 (six) months after the LPIP commences business activities as referred to in Article 30 paragraph (1). (2) LPIP business activities with the addition of information scope as referred to in Article 50 paragraph (1) letter b must be fulfilled no later than 12 (twelve) months after the LPIP commences business activities as referred to in Article 30 paragraph (1).

Article 52
(1) The LPIP cooperates with Financial Institutions and non-Financial Institutions to broaden and enrich the scope of Credit or Financing Data and Other Data. (2) LPIP cooperation to broaden and enrich the scope of Credit or Financing Data and Other Data as referred to in paragraph (1) is implemented based on agreements and in accordance with applicable legislation. (3) The scope of Credit or Financing Data obtained from Financial Institutions as referred to in paragraph (1) is not data reported by Financial Institutions to the Financial Services Authority through the financial information service system.

Article 53
(1) The acquisition of Credit or Financing Data by the LPIP from the financial information service system as referred to in Article 49 paragraph (1) is subject to data acquisition fees. (2) The imposition of data acquisition fees on the LPIP is carried out in accordance with applicable legislation regarding levies by the Financial Services Authority. (3) Provisions regarding the calculation of costs as referred to in paragraph (1) shall be determined by the Financial Services Authority.

Article 54
(1) The Financial Services Authority may:
a. request data obtained directly by the LPIP as referred to in Article 52; and/or b. request the LPIP to generate Credit Information based on specific categories. (2) Further provisions regarding the mechanism for requesting and the scope of data as referred to in paragraph (1) shall be determined by the Financial Services Authority.

Second Section
Data Management
Article 55
The LPIP is obligated to take measures to ensure that for the utilization of Credit or Financing Data and Other Data as referred to in Article 52, the data source has received approval from the ultimate data owner.

Article 56
(1) The management of Credit or Financing Data and Other Data by the LPIP includes at least the following activities:
a. data collection; b. data processing; and
c. data distribution.
(2) Data management as referred to in paragraph (1) must be implemented in accordance with applicable legislation.
(3) In data management as referred to in paragraph (1), the LPIP is obligated to take security measures to maintain the accuracy, validity, timeliness, security, and confidentiality of data.

Article 57
(1) In managing Credit or Financing Data and Other Data, the LPIP is prohibited from:
a. intentionally changing Credit or Financing Data and/or Other Data obtained by the LPIP from the financial information service system, Financial Institutions, and/or non-Financial Institutions as referred to in Article 49 and Article 52; b. transferring and/or copying Credit or Financing Data and/or Other Data to third parties, within or outside the territory of the Republic of Indonesia; and/or
c. making Credit or Financing Data and/or Other Data accessible to third parties, within or outside the territory of the Republic of Indonesia.
(2) The prohibition on transferring, copying, and making accessible Credit or Financing Data and Other Data to or by parties outside the territory of the Republic of Indonesia as referred to in paragraph (1) letters b and c also applies to Credit Information, unless otherwise determined by applicable legislation. (3) The provisions as referred to in paragraph (1) letter a do not apply to the LPIP in cases where:
a. Financial Institutions and non-Financial Institutions that provide Credit or Financing Data and/or Other Data directly to the LPIP are unable to update data; and/or b. the LPIP implements a court decision that has acquired permanent legal force. (4) The LPIP updates data as referred to in paragraph (3) letter a in cases where:
a. Financial Institutions and/or non-Financial Institutions have their business licenses revoked; or b. Financial Institutions and/or non-Financial Institutions are unable to update data due to other reasons. (5) Data updates by the LPIP as referred to in paragraph (4) are conducted based on a written request from:
a. the party appointed to settle the obligations of Financial Institutions and/or non-Financial Institutions, in the event that Financial Institutions and/or non-Financial Institutions have their business licenses revoked as referred to in paragraph (4) letter a; or b. Financial Institutions, non-Financial Institutions, Debtors, or Customers, in the event that Financial Institutions and/or non-Financial Institutions are unable to update data due to other reasons as referred to in paragraph (4) letter b.

Article 58
To maintain the accuracy, validity, timeliness, security, and confidentiality of data as referred to in Article 47 paragraph (1) letter a, the LPIP is obligated to place servers and databases within the territory of the Republic of Indonesia.

Article 59
(1) The LPIP may use the services of third parties to support the implementation of LPIP operational activities.
(2) The LPIP is obligated to ensure that third parties as referred to in paragraph (1) apply data management principles and Credit Information as regulated in this Financial Services Authority Regulation.

Third Section
Administrative Sanctions
Article 60
(1) An LPIP that does not meet the provisions as referred to in Article 51, Article 55, Article 56 paragraph (2), Article 57 paragraph (1), paragraph (2), Article 58, and/or Article 59 paragraph (2), shall be subject to administrative sanctions consisting of a written reprimand. (2) In the event that an LPIP has been subjected to administrative sanctions consisting of a written reprimand as referred to in paragraph (1) and has not yet met the provisions as referred to in Article 51, Article 55, Article 56 paragraph (2), and/or Article 59 paragraph (2), the LPIP may be subject to administrative sanctions consisting of:
a. temporary suspension of certain business activities; and/or b. cessation of the provision of Credit or Financing Data by the Financial Services Authority. (3) An LPIP that does not meet the provisions as referred to in Article 56 paragraph (3) shall be subject to administrative sanctions consisting of a written reprimand and a fine of Rp250,000.00 (two hundred fifty thousand rupiah) per Debtor or Customer, with a total amount not exceeding Rp100,000,000.00 (one hundred million rupiah). (4) In addition to being subject to administrative sanctions as referred to in paragraph (3), an LPIP that does not meet the provisions of Article 56 paragraph (3) may be subject to sanctions consisting of the cessation of Credit Information services for a period determined by the Financial Services Authority. (5) In the event that an LPIP has been subjected to and has not acted upon administrative sanctions consisting of a written reprimand as referred to in paragraphs (1) through (5) within 20 (twenty) working days since the date of issuance of the written reprimand, for violations of provisions as referred to in Article 57 paragraph (1), paragraph (2), and/or Article 58 that cause losses to the public and/or national interests, the LPIP may be subject to administrative sanctions consisting of a second written reprimand. (6) In the event that an LPIP has been subjected to and has not acted upon administrative sanctions consisting of a second written reprimand as referred to in paragraph (5) within 20 (twenty) working days since the date of issuance of the second written reprimand, the LPIP shall be subject to administrative sanctions consisting of a third written reprimand. (7) In the event that an LPIP has been subjected to and has not acted upon administrative sanctions consisting of a third written reprimand as referred to in paragraph (6) within 20 (twenty) working days since the date of issuance of the third written reprimand, the LPIP shall be subject to administrative sanctions consisting of the temporary suspension of certain business activities and/or the cessation of the provision of Credit or Financing Data by the Financial Services Authority for a specific period determined by the Financial Services Authority. (8) In the event that an LPIP does not act upon the third written reprimand within a specific period determined by the Financial Services Authority as referred to in paragraph (7), the LPIP may be subject to administrative sanctions consisting of the revocation of its business license.

CHAPTER VIII
CREDIT INFORMATION
First Section
Credit Information
Article 61
(1) The LPIP is obligated to generate Credit Information with added value.
(2) Credit Information with added value as referred to in paragraph (1) is information generated from the collection and/or processing of Credit or Financing Data and/or Other Data by the LPIP, excluding standard information. (3) Standard information as referred to in paragraph (2) contains at least:
a. identity of the ultimate data owner; b. identity of managers for corporate ultimate data owners; and
c. financial profile of the ultimate data owner.
(4) Standard information as referred to in paragraph (3) may be supplemented with:
a. Fund Provision Facilities; b. collateral and/or guarantors;
c. creditor identity;
d. debtor information user notes; and e. information regarding ongoing complaints against debtor information.

Article 62
Credit Information as referred to in Article 61 paragraph (1) is prohibited from containing data that:
a. has an unknown source; b. has an unclear identity of the ultimate data owner;
c. contains elements of ethnicity, religion, race, and inter-group relations; and
d. is declared confidential based on applicable legislation.

Article 63
(1) The period of Credit or Financing Data processed by the LPIP to generate Credit Information as referred to in Article 61 paragraph (1) is subject to the following provisions:
a. Credit or Financing Data as referred to in Article 49 paragraph (1), for at least the last 2 (two) years calculated from the date of the current condition; and b. specifically for Credit or Financing Data regarding arrears of Fund Provision Facilities, the LPIP continues to process such data until the Fund Provision Facility is paid off, written off, or charged off by the Financial Institution. (2) Credit Information as referred to in paragraph (1) must include:
a. data on the number of requests for Credit Information in the name of the Debtor or Customer for at least the last 1 (one) year calculated from the date of the current condition; and b. data regarding Credit Information in the name of the Debtor or Customer that was the object of a complaint for at least 1 (one) year since the date the complaint was resolved. (3) The period for data that can be presented in Credit Information other than the provisions as referred to in paragraph (1) and paragraph (2) is determined by the LPIP.

Article 64
The schedule for retaining all data managed by the LPIP must be implemented in accordance with applicable legislation regarding company documents.

Article 65
(1) The LPIP is obligated to provide Credit Information in the Indonesian language.
(2) If necessary, the LPIP may provide Credit Information in other languages while still observing the provisions as referred to in paragraph (1).

Second Section
Provision of Credit Information
Article 66
(1) Credit Information may only be obtained by:
a. Financial Institutions that are members of the LPIP; b. non-Financial Institutions that are data sources for the respective LPIP;
c. Debtors or Customers; and/or
d. other parties.
(2) Parties other than those referred to in paragraph (1) are prohibited from obtaining Credit Information.

Article 67
(1) Parties as referred to in Article 66 letters a through c obtain Credit Information in accordance with the procedures required by the LPIP and/or based on agreements between the parties. (2) The parties as referred to in Article 66 must manage Credit Information obtained from the LPIP in accordance with applicable legislation.

Article 68
(1) The LPIP is obligated to administer all requests for Credit Information as referred to in Article 61 paragraph (1).
(2) Administration of requests for Credit Information by the LPIP as referred to in paragraph (1) includes documents supporting the request for Credit Information. (3) Provisions regarding documents supporting requests for Credit Information as referred to in paragraph (2) shall be determined by the Financial Services Authority.

Article 69
(1) Financial Institutions as referred to in Article 66 paragraph (1) letter a may only use Credit Information as referred to in Article 61 paragraph (1) for:
a. supporting the smoothness of the Fund Provision Facility granting process; b. applying credit or financing risk management;
c. identifying Debtor quality to fulfill Financial Services Authority or other competent authority requirements;
d. human resource management within the Financial Institution; and/or e. verification for Financial Institution cooperation with third parties.
(2) Financial Institutions are prohibited from using Credit Information other than for the purposes as referred to in paragraph (1).

Article 70
(1) Non-Financial Institutions as referred to in Article 66 paragraph (1) letter b may only use Credit Information as referred to in Article 61 paragraph (1) for:
a. supporting non-Financial Institution operational activities related to the customer integrity identification process from a credit risk perspective; and/or b. selecting prospective employees, contractors, agents, merchants, and/or non-Financial Institution vendors; and/or
c. fulfilling applicable legislation.
(2) Non-Financial Institutions are prohibited from using Credit Information other than for the purposes as referred to in paragraph (1).

Article 71
The provision of Credit Information by the LPIP to Debtors or Customers as referred to in Article 66 paragraph (1) letter c is limited to Credit Information in the name of the respective Debtor or Customer.

Article 72
(1) Other parties as referred to in Article 66 paragraph (1) letter d may obtain Credit Information to carry out functions and duties in accordance with applicable legislation. (2) Requests for Credit Information as referred to in paragraph (1) must be submitted in writing, stating the purpose and objective of the Credit Information request and the name of the authorized official.

Article 73
(1) The LPIP may charge fees for the provision of Credit Information to parties as referred to in Article 66.
(2) The provisions as referred to in paragraph (1) do not apply in cases where requests for Credit Information are submitted:
a. to verify complaints by Debtors or Customers regarding errors in Credit Information that have been corrected; b. to implement court orders; and/or
c. by other parties as referred to in Article 66 paragraph (1) letter d.
(3) Debtors or Customers may obtain Credit Information without being charged fees by the LPIP once within a period of 12 (twelve) months.
(4) Further provisions regarding guidelines for the use of Credit Information shall be determined by the Financial Services Authority.

Third Section
Administrative Sanctions
Article 74
(1) An LPIP that does not meet the provisions as referred to in Article 61 paragraph (1), Article 62, Article 63 paragraph (2), Article 64, Article 65 paragraph (1), and/or Article 68 paragraph (1), shall be subject to administrative sanctions consisting of a written reprimand. (2) In the event that an LPIP has been subjected to administrative sanctions consisting of a written reprimand as referred to in paragraph (1) and has not yet met the provisions as referred to in Article 61 paragraph (1), Article 63 paragraph (2), Article 64, Article 65 paragraph (1), and/or Article 68 paragraph (1) and continues to violate provisions as referred to in Article 62, the LPIP shall be subject to administrative sanctions consisting of the temporary suspension of certain business activities and/or the cessation of the provision of Credit or Financing Data by the Financial Services Authority. (3) An LPIP that, based on the results of an examination by the Financial Services Authority, violates provisions as referred to in Article 66 paragraph (2), Article 69 paragraph (2), and/or Article 70 paragraph (2), shall be subject to administrative sanctions consisting of a written reprimand and a fine of Rp50,000,000.00 (fifty million rupiah) per Credit Information, with a total fine amount not exceeding Rp5,000,000,000.00 (five billion rupiah).

CHAPTER IX
HANDLING AND RESOLUTION OF COMPLAINTS
Article 75
(1) The LPIP is obligated to follow up on complaints submitted by any party regarding issues of accuracy, validity, timeliness, security, and confidentiality of data in Credit Information generated by the LPIP. (2) In following up on complaints as referred to in paragraph (1), the LPIP conducts research into the complained-about issues based on documents and/or data owned by the LPIP. (3) To conduct research as referred to in paragraph (2), the LPIP may coordinate with parties that provide Credit or Financing Data and/or Other Data to the LPIP.

Article 76
(1) In the event that a complaint by a Debtor or Customer is caused by inaccuracies in the processing results of Credit or Financing Data and/or Other Data by the LPIP based on research results as referred to in Article 75 paragraph (2) and coordination as referred to in Article 75 paragraph (3), the LPIP is obligated to follow up by making corrections. (2) In following up on complaints by Debtors or Customers caused by inaccuracies in Credit or Financing Data and/or Other Data sourced from:
a. Financial Institutions that are members of the LPIP and/or non-Financial Institutions as referred to in Article 52 paragraph (1), the LPIP forwards the complaint by the Debtor or Customer directly to the Financial Institution and/or non-Financial Institution with a copy to the Financial Services Authority; or b. Financial Institutions that are not members of the LPIP, the LPIP forwards the complaint by the Debtor or Customer to the Financial Services Authority. (3) To resolve complaints as referred to in Article 75 paragraph (1), the LPIP is obligated to have written policies and procedures containing at least:
a. receipt of complaints; b. handling and resolution of complaints;
c. monitoring of complaint handling and resolution; and
d. organizational devices responsible for handling complaints.

Article 77
(1) The LPIP is obligated to resolve complaints by Debtors or Customers as referred to in Article 75 paragraph (1) within a maximum period of 20 (twenty) working days since the date of receipt of the complaint. (2) In the event that a complaint cannot be resolved within the period as referred to in paragraph (1), the LPIP may request the Debtor or Customer to extend the complaint resolution period for a maximum of 20 (twenty) working days. (3) In the event that the LPIP requests an extension of the period to the Debtor or Customer as referred to in paragraph (2), the LPIP is obligated to resolve the complaint by the Debtor or Customer within a maximum period of 20 (twenty) working days. (4) The LPIP is obligated to inform the party submitting the complaint of the complaint resolution period as referred to in paragraph (1) and paragraph (2). (5) In the event that the LPIP has resolved the complaint by the Debtor or Customer, the LPIP informs the Debtor or Customer of the complaint resolution results in writing and/or using information technology facilities according to the request of the Debtor or Customer.

Article 78
(1) The LPIP is obligated to mark data in Credit Information that is in the process of complaint until the complaint process is completed.
(2) The LPIP is obligated to administer all complaints received.
(3) Further provisions regarding the handling and resolution of complaints shall be determined by the Financial Services Authority.

Article 79
(1) A Credit Information Management Institution (LPIP) that does not meet the provisions as referred to in Article 75 paragraph (1), Article 76 paragraph (1), paragraph (3), Article 77 paragraph (4), and/or Article 78 paragraph (1), paragraph (2) shall be subject to administrative sanctions in the form of a written warning. (2) An LPIP that does not meet the provisions as referred to in Article 77 paragraph (1) and/or paragraph (3) shall be subject to administrative sanctions in the form of a written warning and a fine of IDR 250,000.00 (two hundred fifty thousand rupiah) per complaint. (3) In the event that an LPIP has been subjected to administrative sanctions in the form of a written warning as referred to in paragraph (1) or written warning and fine as referred to in paragraph (2) and still does not meet the provisions as referred to in Article 75 paragraph (1), Article 76 paragraph (1), paragraph (3), Article 77 paragraph (1), paragraph (3), paragraph (4), and/or Article 78 paragraph (1), paragraph (2), the LPIP shall be subject to administrative sanctions in the form of temporary suspension of certain business activities and/or cessation of the provision of Credit Data or Financing by the Financial Services Authority.

CHAPTER X
SUPERVISION

Article 80
(1) The Financial Services Authority conducts supervision over LPIPs.
(2) Supervision as referred to in paragraph (1) is conducted by the Financial Services Authority directly and/or indirectly.

Article 81
Direct supervision as referred to in Article 80 paragraph (2) is conducted by the Financial Services Authority through examinations of LPIPs and/or affiliated parties:
a. periodically; and b. at any time when necessary.

Article 82
(1) Examinations as referred to in Article 81 cover the technology used, governance compliance with applicable laws and regulations, data security, complaint handling, and other matters required by the Financial Services Authority. (2) For specific scopes, examinations as referred to in Article 81 may be conducted by other parties designated by the Financial Services Authority. (3) Requirements for other parties designated to conduct examinations with specific scopes as referred to in paragraph (2) are as follows:
a. legal entity status; b. not an affiliated party of the LPIP;
c. independent;
d. competent in their field; and e. understanding of applicable laws and regulations.

Article 83
In the implementation of direct supervision as referred to in Article 80 paragraph (2), LPIPs are obliged to provide the Financial Services Authority with information and data requested, accounting books, documents, access to physical facilities related to business activities, and other matters required.

Article 84
In the implementation of indirect supervision as referred to in Article 80 paragraph (2), LPIPs submit reports and/or plans in the form of:
a. monthly reports; b. quarterly reports;
c. semi-annual reports;
d. annual reports; e. annual business plans; and f. other incidental reports.

Article 85
(1) Monthly reports as referred to in Article 84 letter a contain recorded data statistics at the LPIP, consisting of at least:
a. total Debtor or Customer data; b. total Fund Provision Facility data;
c. number of Financial Institutions that are members of the LPIP and non-Financial Institutions that are data sources;
d. number of Credit Information requests; and e. handling of complaints from Debtors or Customers.
(2) Monthly reports as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than the 7th day of the following month.

Article 86
(1) Quarterly reports as referred to in Article 84 letter b contain the LPIP's financial report.
(2) Quarterly reports as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than the 15th day of the following month.

Article 87
(1) Semi-annual reports as referred to in Article 84 letter c contain at least:
a. realization report of the annual business plan; b. report on changes to the business plan; and
c. organizational structure of the LPIP including executive officials.
(2) Semi-annual reports as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 1 (one) month after the end of the relevant reporting period.

Article 88
(1) Annual reports as referred to in Article 84 letter d contain at least:
a. general information including management, ownership, development of LPIP business, and management reports; b. annual financial reports including balance sheet, profit and loss statement, statement of changes in equity, and cash flow statement;
c. report on the utilization of foreign labor;
d. report on the application of governance; e. opinion from a public accountant; and f. other disclosure aspects mandated in financial accounting standards. (2) Annual financial reports as referred to in paragraph (1) letter b must be audited by a public accountant. (3) Annual reports as referred to in paragraph (1) must be submitted no later than May 31 of the following year.

Article 89
(1) Annual business plans as referred to in Article 84 letter e contain at least:
a. management policies and strategies; b. projected financial reports along with assumptions used;
c. capital planning;
d. information system technology development plan; e. foreign labor utilization plan; and f. product issuance plan and/or new activity implementation plan. (2) LPIPs are obliged to submit annual business plans as referred to in paragraph (1) to the Financial Services Authority no later than the end of November before the year the business plan begins.

Article 90
LPIPs are obliged to submit incidental reports as referred to in Article 84 letter f to the Financial Services Authority no later than within the timeframe determined by the Financial Services Authority.

Article 91
(1) LPIPs must submit applications, reports, and/or annual business plans as regulated in this Financial Services Authority Regulation electronically through the Financial Services Authority's reporting system. (2) In the event that electronic submission of applications, reports, and/or annual business plans as referred to in paragraph (1) cannot yet be performed, LPIPs submit reports offline to the Financial Services Authority. (3) Offline submission of applications, reports, and/or annual business plans is directed to the work unit performing licensing and banking information functions at the Financial Services Authority. (4) If the deadline for submitting reports and annual business plans falls on a Saturday, Sunday, and/or holiday, the reports and annual business plans are submitted on the next working day. (5) Further provisions regarding the preparation and submission of reports and annual business plans are determined by the Financial Services Authority.

Article 92
(1) LPIPs that do not meet the provisions as referred to in Article 83 and/or Article 88 paragraph (2) shall be subject to administrative sanctions in the form of a written warning. (2) LPIPs that do not submit monthly reports after the final submission deadline as referred to in Article 85 paragraph (2) shall be subject to administrative sanctions in the form of a fine of IDR 100,000.00 (one hundred thousand rupiah) per working day and at most IDR 5,000,000.00 (five million rupiah) per report. (3) LPIPs that do not submit reports and/or annual business plans after the final submission deadline for reports and/or annual business plans as referred to in Article 86 paragraph (2), Article 87 paragraph (2), Article 88 paragraph (3), and/or Article 89 paragraph (2) shall be subject to administrative sanctions in the form of a fine of IDR 1,000,000.00 (one million rupiah) per working day and at most IDR 50,000,000.00 (fifty million rupiah) per report or annual business plan. (4) LPIPs that do not submit incidental reports after the final submission deadline for reports determined by the Financial Services Authority as referred to in Article 90 shall be subject to administrative sanctions in the form of a written warning. (5) LPIPs that have been subjected to administrative sanctions as referred to in paragraph (2), paragraph (3), and/or paragraph (4) remain obliged to submit reports and/or annual business plans to the Financial Services Authority. (6) In the event that an LPIP has been subjected to administrative sanctions in the form of a fine as referred to in paragraph (2) and/or paragraph (3) and does not submit reports and/or annual business plans until the timeframe determined by the Financial Services Authority, the LPIP shall be subject to administrative sanctions in the form of a written warning. (7) In the event that an LPIP has been subjected to administrative sanctions in the form of a written warning as referred to in paragraph (1), paragraph (4), and/or paragraph (6) and still does not meet the provisions as referred to in Article 83, Article 85 paragraph (2), Article 86 paragraph (2), Article 87 paragraph (2), Article 88 paragraph (3), Article 89 paragraph (2) and/or Article 90, the LPIP shall be subject to administrative sanctions in the form of temporary suspension of certain business activities and/or cessation of the provision of Credit Data or Financing by the Financial Services Authority.

CHAPTER XI
CESSATION OF BUSINESS AND REVOCATION OF BUSINESS LICENSE

Article 93
(1) An LPIP intending to cease its business activities is obliged to submit a written application for cessation of business activities to the Financial Services Authority attached with:
a. minutes of the General Meeting of Shareholders regarding the plan to cease business activities; b. reasons for cessation;
c. plan to settle all obligations;
d. latest financial report; and e. proof of tax settlement based on the results of examination by the tax service office for the last 3 (three) years before the date of the application. (2) Minutes of the General Meeting of Shareholders as referred to in paragraph (1) letter a must contain at least decisions approving the plan to cease the LPIP's business activities and orders to the Board of Directors to settle the LPIP's obligations. (3) Based on the application as referred to in paragraph (1), the Financial Services Authority issues a letter of cessation of LPIP business activities requiring the LPIP to:
a. cease all business activities as an LPIP; b. announce the cessation of business activities as an LPIP and the plan to settle LPIP obligations in 1 (one) national daily newspaper, the official LPIP website, and the official LPIP social media account no later than 10 (ten) working days from the date of issuance of the cessation letter;
c. immediately settle all LPIP obligations; and
d. appoint a public accounting firm to verify the settlement of LPIP obligations.
(4) In the event that an LPIP does not meet the provisions as referred to in paragraph (3), the LPIP shall be subject to administrative sanctions in the form of a written warning. (5) In the event that an LPIP has been subjected to administrative sanctions in the form of a written warning as referred to in paragraph (4) and does not meet the provisions as referred to in paragraph (3), the Principal Parties of the LPIP may be subject to administrative sanctions in the form of prohibition as Principal Parties according to this Financial Services Authority Regulation.

Article 94
(1) In the event that all obligations of the LPIP as referred to in Article 93 paragraph (3) letter c have been settled, the LPIP submits an application for revocation of the LPIP business license to the Financial Services Authority accompanied by a report containing at least:
a. implementation of cessation of business activities; b. implementation of announcement as referred to in Article 93 paragraph (3) letter b;
c. implementation of settlement of LPIP obligations;
d. verification result report from the public accounting firm on the settlement of LPIP obligations; and e. statement letter from shareholders that the steps to settle LPIP obligations have been completed and if claims arise in the future, they become the responsibility of the shareholders. (2) Based on the application for revocation of business license as referred to in paragraph (1), the Financial Services Authority issues a decision on the revocation of the LPIP business license. (3) From the date the decision on revocation of business license is issued, if there are still unfulfilled obligations in the future, all obligations become the responsibility of the LPIP shareholders.

Article 95
(1) The Financial Services Authority is authorized to revoke the business license granted as referred to in Article 23 letter b by issuing a revocation decision, in the event:
a. the LPIP violates provisions in this Financial Services Authority Regulation with sanctions in the form of revocation of business license; and/or b. there is a court decision that has acquired permanent legal force. (2) From the date the decision on revocation of business license is issued, if there are still unfulfilled obligations in the future, all obligations become the responsibility of the LPIP shareholders.

Article 96
Further provisions regarding the procedures for cessation of business and revocation of business license as referred to in Article 93 to Article 95 are determined by the Financial Services Authority.

Article 97
The Financial Services Authority may establish different policies based on specific considerations regarding supervision and implementation of LPIP business activities other than those regulated in this Financial Services Authority Regulation.

CHAPTER XII
TRANSITIONAL PROVISIONS

Article 98
(1) LPIPs established before this Financial Services Authority Regulation takes effect may use paid-in capital fulfillment as regulated in the Financial Services Authority Regulation prior to the effectiveness of this Financial Services Authority Regulation. (2) The Financial Services Authority may request LPIPs established using paid-in capital fulfillment as regulated in the Financial Services Authority Regulation prior to the effectiveness of this Financial Services Authority Regulation to perform higher paid-in capital fulfillment to support continuous operational activities and the continuity of LPIP business development in the future.

CHAPTER XIII
CLOSING PROVISIONS

Article 99
Upon the effectiveness of this Financial Services Authority Regulation, the Financial Services Authority Regulation Number 42/POJK.03/2019 concerning Credit Information Management Institutions (State Gazette of the Republic of Indonesia Year 2019 Number 261, Supplement to the State Gazette of the Republic of Indonesia Number 6449) is revoked and declared invalid.

Article 100
This Financial Services Authority Regulation takes effect on the date of its promulgation.

This copy corresponds to the original
Director of Legal Affairs 1
Legal Department signed
Mufli Asmawidjaja

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

Established in Jakarta on March 25, 2022

CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,

signed
WIMBOH SANTOSO

Promulgated in Jakarta on March 28, 2022
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signature
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2022 NUMBER 77

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 5 /POJK.03/2022
CONCERNING
CREDIT INFORMATION MANAGEMENT INSTITUTIONS

I. GENERAL
To encourage the growth of credit and financial inclusion, especially in the micro, small, and medium enterprise sector, support from various parties is needed, one of which is the LPIP as a supporting institution in the financial services sector. LPIPs provide diverse, comprehensive Credit Information with added value as a consideration basis for financial service institutions in distributing credit or financing to Debtors or Customers. In line with policy directions to strengthen the role and function of financial service institutions in encouraging sustainable national economic growth, it is necessary to formulate provisions and policies supporting the continuity of LPIP business. The continuity of LPIP business starts from strengthening capital since inception, institutional arrangement through feasibility tests for shareholders and management, good governance implementation, strengthening protection for stakeholders, and increasing compliance with applicable laws and regulations and ethical values generally applied in operational activities. Implementation of existing regulations needs to be improved to realize increased competitiveness and contribution of LPIPs, not only for Financial Institutions but also for non-Financial Institutions. Based on the above, renewal of the Financial Services Authority Regulation Number 42/POJK.03/2019 concerning Credit Information Management Institutions is necessary.

II. ARTICLE BY ARTICLE
Article 1
Clear enough.

Article 2
Paragraph (1)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Included in Credit Information with added value includes information such as credit scores, fraud alerts, Debtor or Customer profile mapping, and monitoring and evaluation of Debtors or Customers. Paragraph (2) Clear enough. Paragraph (3) Clear enough. Paragraph (4) Clear enough. Paragraph (5) Clear enough.

Article 3
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
Information for performance measurement and risk profile monitoring of Debtors or Customers includes among others deviation alerts (fraud alert) and alerts regarding changes in Debtor or Customer portfolio (portfolio alert). Letter e Other information that can be used to assess prospective Debtors or Customers includes among others information for the recruitment process of prospective employees.

Article 4
Clear enough.

Article 5
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
The capital deposit value for other assets that can be utilized as infrastructure supporting the LPIP is the fair value assessed by an independent appraiser registered with the Financial Services Authority. Paragraph (4) Clear enough.

Article 6
What is meant by "net capital" is the amount of equity as regulated in financial accounting standards and does not include other comprehensive income.
Example 1:
LPIP "A" is established in accordance with this Financial Services Authority Regulation with paid-in capital of IDR 200,000,000,000.00 (two hundred billion rupiah). The LPIP is required to maintain net capital value of IDR 100,000,000,000.00 (one hundred billion rupiah).

Example 2:
LPIP "B" is established in accordance with Financial Services Authority regulations prior to the effectiveness of this Financial Services Authority Regulation with paid-in capital of IDR 50,000,000,000.00 (fifty billion rupiah). The LPIP is required to maintain net capital value of IDR 25,000,000,000.00 (twenty-five billion rupiah).

Article 7
Clear enough.

Article 8
Paragraph (1)
What is meant by "good governance" is a method of managing the LPIP that applies principles of transparency, accountability, responsibility, independence, and fairness. Paragraph (2) Letter a Clear enough. Letter b Clear enough. Letter c Clear enough. Letter d Clear enough. Letter e Clear enough. Letter f Transparency covers disclosure aspects and the form of LPIP accountability for the utilization of Debtor or Customer data. Transparency of financial and non-financial conditions through publication is conducted on the LPIP website. Paragraph (3) Clear enough. Paragraph (4) Clear enough.

Article 9
Paragraph (1)
Clear enough.
Paragraph (2)
Letter a
What is meant by "Controlling Principal Party" is the controlling shareholder of the LPIP.
What is meant by "controlling shareholder" is a legal entity holding shares or equivalent to shares of the LPIP amounting to 25% (twenty-five percent) or more of the issued shares with voting rights, or holding less than 25% (twenty-five percent) of the issued shares with voting rights but the party concerned can prove to have controlled the LPIP. What is meant by "control" is an action aimed at influencing the management and/or policies of the LPIP, by any means, whether directly or indirectly. Letter b What is meant by "Management Principal Party" is members of the Board of Directors, members of the Board of Commissioners, or personnel executing management duties. Paragraph (3) Clear enough. Paragraph (4) Clear enough. Paragraph (5) Clear enough.

Article 10
Letter a
Clear enough.
Letter b
Having good character and morality is shown among others by attitudes complying with applicable regulations, including never being punished for proven criminal acts within a certain period before nomination. What is meant by "criminal act" is:

criminal acts in the financial services sector whose punishment has been completed within 20 (twenty) years before nomination;
criminal offenses, namely criminal acts listed in the Criminal Code (KUHP) and/or similar to KUHP abroad with threats of imprisonment of 1 (one) year or more whose punishment has been served within the last 10 (ten) years before nomination; and/or
other criminal acts with threats of imprisonment of 1 (one) year or more, among others corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting currency, taxation, forestry, environment, marine, and fisheries, whose punishment has been served within the last 20 (twenty) years before nomination.
To assess "attitude complying with applicable regulations," negative records of the party concerned found in law enforcement agencies and/or other authorities are considered among others. Letter c Clear enough. Letter d Clear enough. Letter e Clear enough. Letter f Clear enough.

Article 11
Clear enough.

Article 12
Clear enough.

Article 13
Clear enough.

Article 14
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
What is meant by "public company" is a company conducting a public offering of securities in accordance with regulations in the capital market sector.
Paragraph (5)
Experience in the Credit Information Management industry for foreign legal entities is shown among others by written evidence that the legal entity has experience owning or managing a credit bureau in another country and/or has experience running business activities producing credit rating products or credit scoring products. The aforementioned written evidence includes among others letters of certification from authorities or photocopies of the articles of association of prospective LPIP shareholders.

Article 15
Paragraph (1)
Clear enough.
Paragraph (2)
Ownership based on inter-shareholder linkages is based on among others:
a. ownership relationships; and b. cooperation or aligned actions to achieve common goals in controlling the LPIP with or without written agreements so that together they have option rights or other rights to own LPIP shares. Paragraph (3) Clear enough. Paragraph (4) What is meant by "foreign party" is a foreign legal entity or foreign citizen. Paragraph (5) Clear enough.

Article 16
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
What is meant by "executive official" is an official directly responsible to the Board of Directors or having influence on policies and operations of companies, organizations, or non-profit institutions.

Article 17
Clear enough.

Article 18
Paragraph (1)
What is meant by "executive official" is an official directly responsible to the Board of Directors or having...

Influence on the policy and operations of the Credit Information Institution (LPIP).

Article 19
Paragraph (1)
The term "foreign workforce" refers to foreign citizens holding visas for the purpose of working within the territory of the Republic of Indonesia.
The terms "expert workforce" and "consultant" refer to individuals possessing specific technical knowledge with adequate qualification standards.

Paragraph (2)
Letter a
The term "qualification of expertise" refers to the fulfillment of requirements for expertise in a specific field obtained through education and work experience.

Letter b
The term "Financial Institutions located in Indonesia and/or outside Indonesia" refers to:

financial service institutions as referred to in the Law regarding the Financial Services Authority;
cooperatives as referred to in the Law regarding cooperatives; and
other institutions or companies that provide Credit Facilities or those that can be equated therewith.

Letter c
Specifically for knowledge of the Indonesian language, this is proven by the Indonesian Language Proficiency Certificate (UKBI) issued by the Ministry of Education and Culture of the Republic of Indonesia or proof of Indonesian language proficiency issued by an Indonesian language educational institution registered with the competent authority.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Article 20
Is sufficiently clear.

Article 21
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
Is sufficiently clear.

Letter e
The knowledge transfer program plan includes, among others, training plans by foreign workforce for local companion workforce.

Paragraph (4)
Is sufficiently clear.

Article 22
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
The term "causing significant disruption to LPIP operations" includes, among others, cases where the LPIP cannot maintain the security of Credit Data or Financing and/or Other Data managed by the LPIP.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Is sufficiently clear.

Article 23
Is sufficiently clear.

Article 24
Is sufficiently clear.

Article 25
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Given that prospective shareholders of the LPIP are legal entities, the parties interviewed for the fitness and propriety assessment are one member of the board of directors and one member of the board of commissioners from the legal entity.

Letter d
Is sufficiently clear.

Letter e
Other analyses based on the consideration of the Financial Services Authority include, among others, analysis of the LPIP business support ecosystem.

Paragraph (5)
Is sufficiently clear.

Article 26
Is sufficiently clear.

Article 27
Is sufficiently clear.

Article 28
Is sufficiently clear.

Article 29
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
In conducting assessments of information technology systems, the Financial Services Authority may conduct direct inspections at the LPIP office and/or may assign third parties to conduct such inspections.

Letter e
Other analyses based on the consideration of the Financial Services Authority include, among others, the product plan to be marketed.

Paragraph (3)
Is sufficiently clear.

Article 30
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Examples of business activity implementation include, among others, providing proof of identification and/or marketing of LPIP products to prospective members.

Paragraph (3)
Force majeure includes, among others, fire, mass riots, war, armed conflict, sabotage, pandemic, and/or natural disasters such as earthquakes or floods, certified by officials of the competent agency.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Article 31
Is sufficiently clear.

Article 32
Is sufficiently clear.

Article 33
Paragraph (1)
Changes to the ownership composition of the LPIP include, among others, replacement, reduction, and addition of the number of owners.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Article 34
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Regulatory provisions include, among others, the Law regarding limited liability companies.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Article 35
Is sufficiently clear.

Article 36
Is sufficiently clear.

Article 37
Is sufficiently clear.

Article 38
Is sufficiently clear.

Article 39
Is sufficiently clear.

Article 40
Is sufficiently clear.

Article 41
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
Is sufficiently clear.

Letter e
The term "financial service institution" refers to a financial service institution that provides Credit Facilities.

Letter f
Is sufficiently clear.

Letter g
Is sufficiently clear.

Letter h
Is sufficiently clear.

Letter i
Number 1
Efforts and implementation of the authority of the Financial Services Authority include, among others:
a. written orders issued by the Financial Services Authority to the LPIP and/or Principal Parties in handling LPIP issues; and/or b. follow-up actions on handling LPIP issues in relation to violations of other authority regulations by the LPIP.

Number 2
Other parties include, among others, prospective Principal Parties of the LPIP who will undertake efforts to handle LPIP issues.

Letter j
Examples of integrity and/or financial feasibility issues include, among others, controlling Principal Parties of the LPIP declared as failing the assessment as Principal Parties at financial service institutions in accordance with the Financial Services Authority regulations regarding re-assessment of principal parties of financial service institutions.

Article 42
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
Is sufficiently clear.

Letter e
Is sufficiently clear.

Letter f
Is sufficiently clear.

Letter g
Is sufficiently clear.

Letter h
Is sufficiently clear.

Letter i
Is sufficiently clear.

Letter j
Examples of integrity, financial reputation, and/or competence issues include, among others, the board of commissioners of the LPIP declared as failing the assessment as Principal Parties at financial service institutions in accordance with the Financial Services Authority regulations regarding re-assessment of principal parties of financial service institutions.

Article 43
Is sufficiently clear.

Article 44
Is sufficiently clear.

Article 45
Is sufficiently clear.

Article 46
Is sufficiently clear.

Article 47
Is sufficiently clear.

Article 48
Is sufficiently clear.

Article 49
Paragraph (1)
The term "financial information service system" refers to an information system managed by the Financial Services Authority to support the implementation of supervision and information services in the financial sector in accordance with the Financial Services Authority Regulation regarding reporting and requests for debtor information through the financial information service system.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Article 50
Paragraph (1)
Letter a
Information and/or data from non-reporting Financial Institutions in the financial information service system include, among others, information and/or data from entities providing internet-based money lending services.

Letter b
Information and/or data from non-Financial Institutions include, among others, electricity bill data, telephone payment data, water bill payment data, healthcare data, and marketplace data.

Paragraph (2)
Big data solutions services are known as big data solutions.
Macroeconomic factor-based models are known as macroeconomic factor-based models.

Paragraph (3)
Is sufficiently clear.

Article 51
Is sufficiently clear.

Article 52
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
The term "regulatory provisions" includes, among others, regulations regarding consumer protection and regulations regarding public information openness.

Paragraph (3)
The scope of Credit Data or Financing obtained from Financial Institutions differs from that reported by Financial Institutions to the Financial Services Authority through the financial information service system, which is intended to avoid the possibility of duplication of Credit Data or Financing acquisition by the LPIP sourced from the Financial Services Authority and/or Financial Institutions, so that the quality of debtor data to support the provision of Credit Information from the LPIP remains maintained. Credit Data or Financing reported by Financial Institutions to the Financial Services Authority through the financial information service system include, among others, credit limits, debit balances, and credit or financing quality data.

Article 53
Is sufficiently clear.

Article 54
Paragraph (1)
Letter a
Data requests by the Financial Services Authority are conducted from time to time and/or periodically.

Letter b
The Financial Services Authority's consideration in requesting the LPIP to generate Credit Information based on specific categories, for example to improve financing access, is that the Financial Services Authority deems it necessary for there to be an LPIP that generates Credit Information for micro, small, and medium business categories.

Paragraph (2)
Is sufficiently clear.

Article 55
Includes ultimate data owners, namely Debtors or Customers.

Article 56
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Regulatory provisions include, among others, regulations regarding electronic information and transactions.

Paragraph (3)
Is sufficiently clear.

Article 57
Paragraph (1)
Letter a
Example of changing data:
Credit quality data belonging to Debtor "A" received by the LPIP from the financial information service system, which is collectibility status 2 (special attention), is changed by the LPIP to collectibility status 1 (performing).

Letter b
Transferring Credit Data or Financing and/or Other Data includes, among others, activities of transferring data using information technology.

Letter c
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Letter a
Is sufficiently clear.

Letter b
Financial Institutions and/or non-Financial Institutions are unable to update data due to other reasons, including, among others, cases where Financial Institutions and/or non-Financial Institutions are technically unable to update data.

Paragraph (5)
Letter a
Parties appointed to fulfill obligations include, among others, liquidators for Financial Institutions whose business licenses have been revoked.

Letter b
Is sufficiently clear.

Article 58
Is sufficiently clear.

Article 59
Paragraph (1)
Using the services of other parties includes, among others, the use of external parties to implement system reliability testing and data management security, helpdesk services, and Debtor or Customer complaint services.

Paragraph (2)
Is sufficiently clear.

Article 60
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Examples:

Based on supervision conducted by the Financial Services Authority, the LPIP is found to have caused inaccuracies in the Credit Information of 10 (ten) Debtors or Customers. For this violation, the LPIP is subject to a fine of 10 times Rp250,000.00 or a total of Rp2,500,000.00.
Based on supervision conducted by the Financial Services Authority, the LPIP is found to have used an inappropriate scoring method, causing inaccuracies in the Credit Information of all Debtors or Customers recorded in the LPIP database, which amounts to 50,000,000 Debtors or Customers. For this violation, the LPIP is subject to a fine with the maximum amount, which is Rp100,000,000.00.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Losses to the general public and/or national interests include, among others:

The LPIP uses an inappropriate scoring model, so the credit scores generated by the LPIP are misleading and endanger financial system stability; or
The LPIP transfers Credit Data or Financing and/or Other Data to other parties that have the potential to cause economic, social, political, and national security disruptions.

Paragraph (6)
Is sufficiently clear.

Paragraph (7)
Is sufficiently clear.

Paragraph (8)
Is sufficiently clear.

Article 61
Is sufficiently clear.

Article 62
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
Declared confidential based on regulatory provisions includes, among others, customer deposit data held at banks.

Article 63
Is sufficiently clear.

Article 64
Is sufficiently clear.

Article 65
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
The LPIP may provide Credit Information in other languages upon request from the applicant, while still presenting the information in the Indonesian language.

Article 66
Paragraph (1)
Letter a
Acquisition of Credit Information by Financial Institutions is conducted based on agreement with the LPIP.

Letter b
Acquisition of Credit Information by non-Financial Institutions is conducted based on agreement with the LPIP.

Letter c
Is sufficiently clear.

Letter d
The term "other parties" includes, among others, law enforcement agencies and public agencies for the implementation of duties.

Paragraph (2)
Parties other than those referred to in paragraph (1) include, among others, other LPIPs.

Article 67
Paragraph (1)
Procedures required by the LPIP include, among others, provisions regarding risk mitigation, for example, ensuring that the Debtor or Customer requesting Credit Information is the actual Debtor or Customer, accompanied by supporting documents.

Paragraph (2)
Regulatory provisions include, among others, regulations regarding electronic information and transactions.

Article 68
Paragraph (1)
Administering means conducting bookkeeping for every request for Credit Information, whether requested in writing, orally, or through electronic media. Such bookkeeping may use information technology media.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Article 69
Paragraph (1)
Letter a
Is sufficiently clear.

Letter b
Example:
Use of debtor information for monitoring existing debtors, conducting audits, and applying anti-fraud strategies, but does not include the preparation of prospect lists for prospective debtors and cross-selling to non-customers of the Financial Institution.

Letter c
Example:
Use of debtor information for equalizing quality against one debtor or one same project in accordance with regulatory provisions.

Letter d
Example:
Use of debtor information for the selection process of prospective employees of the Financial Institution.

Letter e
Example:
Use of debtor information for the selection of partners, agents, merchants, or vendors of the Financial Institution.

Paragraph (2)
Is sufficiently clear.

Article 70
Paragraph (1)
Letter a
Examples of customer financing include, among others, the use of postpaid phones, placement of entity goods with distributors, and provision of credit facilities to customers.

Letter b
Merchants are also known as merchants.

Letter c
The term "fulfillment of regulatory provisions" refers to the fulfillment of regulations governing the use of Credit Information other than those regulated in this Financial Services Authority Regulation.

Paragraph (2)
Is sufficiently clear.

Article 71
Is sufficiently clear.

Article 72
Paragraph (1)
To implement functions and duties in accordance with regulatory provisions, including, among others:
a. conducting investigation, investigation, or proof processes by law enforcement officials; or b. implementing court decisions that have acquired permanent legal force.

Paragraph (2)
Is sufficiently clear.

Article 73
Is sufficiently clear.

Article 74
Is sufficiently clear.

Article 75
Is sufficiently clear.

Article 76
Is sufficiently clear.

Article 77
Is sufficiently clear.

Article 78
Is sufficiently clear.

Article 79
Is sufficiently clear.

Article 80
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Direct supervision is supervision conducted by the Financial Services Authority through examination of LPIP operations.
Indirect supervision is supervision conducted by the Financial Services Authority through analysis of reports, documents, data, and/or other information submitted by the LPIP.

Article 81
The term "affiliated parties" includes members of the LPIP, Debtors or Customers who are members of the LPIP, other parties supporting the implementation of LPIP operational activities, and external auditors conducting audits of the LPIP financial reports.

Article 82
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Inspections conducted by other parties are only conducted for specific matters as stated in the assignment letter from the Financial Services Authority.

Example:
Inspection of data algorithm accuracy by a public accounting firm.

Paragraph (3)
Is sufficiently clear.

Article 83
Is sufficiently clear.

Article 84
Is sufficiently clear.

Article 85
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Example:
The monthly data position report for February 2022 is submitted no later than March 7, 2022.

Article 86
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Submission of quarterly reports does not eliminate the LPIP's obligation to submit other reports during that period.

Example:
The quarterly report for the first quarter of 2022, containing the financial position report for data in March, is submitted no later than April 15, 2022.

Article 87
Paragraph (1)
Letter a
Is sufficiently clear.

Letter b
The business plan change report is submitted for the first semester period.

Letter c
Executive official information is accompanied by supporting information, including, among others, identity cards, tax identification numbers, full names, and addresses of executive officials.

Paragraph (2)
Submission of semi-annual reports does not eliminate the LPIP's obligation to submit other reports during that period.

Example:
The semi-annual report for the first semester of 2022 is submitted no later than July 31, 2022.

Article 88
Paragraph (1)
The annual report is a comprehensive report regarding the LPIP's performance over a period of 1 (one) year.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Submission of the annual report does not eliminate the LPIP's obligation to submit other reports during that period.

Example:
The annual report with data position as of December 31, 2021, is submitted no later than May 31, 2022.
Submission of the annual report does not eliminate the obligation to submit monthly reports for the period of December 2021, the fourth quarter report for 2021, and the second semester report for 2021.

Article 89
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Submission of the annual business plan does not eliminate the LPIP's obligation to submit other reports during that period.

Example:
The annual business plan for the year 2023 is submitted no later than November 30, 2022.

Article 90
Is sufficiently clear.

Article 91
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Includes holidays, namely national holidays and joint leave days.

Paragraph (5)
Is sufficiently clear.

Article 92
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Example:
The monthly data position report for March 2022 is submitted no later than April 7, 2022. LPIP "A" submits the monthly report on Thursday, April 14, 2022. LPIP "A" is subject to an administrative sanction in the form of a fine of Rp500,000.00 (five hundred thousand rupiah), which is 5 (five) working days x Rp100,000.00 (one hundred thousand rupiah).

Paragraph (3)
Example 1:
The annual report with data position as of December 31, 2021, is submitted no later than May 31, 2022. LPIP "B" submits the annual report on Wednesday, June 15, 2022. LPIP "B" is subject to an administrative sanction in the form of a fine of Rp11,000,000.00 (eleven million rupiah), which is 11 (eleven) working days x Rp1,000,000.00 (one million rupiah).

Example 2:
The quarterly report for the second quarter of 2022, containing the financial position report for data in June, is submitted no later than July 15, 2022. LPIP "C" submits the quarterly report for the second quarter of 2022 on September 30, 2022, so LPIP "C" is declared late in submitting the said report for 54 (fifty-four) working days. For this violation, LPIP "C" is subject to an administrative sanction in the form of a fine of 54 x Rp1,000,000.00 (one million rupiah) = Rp54,000,000.00 (fifty-four million rupiah). Thus, LPIP "C" is subject to an administrative sanction in the form of a fine of at most Rp50,000,000.00 (fifty million rupiah).

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Paragraph (6)
Is sufficiently clear.

Paragraph (7)
Is sufficiently clear.

Article 93
Paragraph (1)
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
The plan to settle all obligations includes, among others, the settlement of customer complaints, the plan to transfer Credit Data or Financing and/or Other Data to the Financial Services Authority or other parties appointed by the Financial Services Authority, and the plan for data destruction.

Letter d
Is sufficiently clear.

Letter e
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Article 94
Is sufficiently clear.

Article 95
Is sufficiently clear.

Article 96
Is sufficiently clear.

Article 97
Different policies regarding supervision and implementation of LPIP business activities based on certain considerations include, among others, adjustment of different report submission deadlines under conditions that limit the LPIP from submitting reports within the specified deadlines.

Article 98
Is sufficiently clear.

Article 99
Is sufficiently clear.

Article 100
Is sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6785

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