FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 5 /POJK.03/2016

CONCERNING

BANK BUSINESS PLANS

BY THE GRACE OF GOD THE ALMIGHTY,

THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to direct bank operational activities in accordance with its vision and mission, banks need to establish strategic objectives and a set of corporate values which are further elaborated in the business plan; b. that the business plan needs to be prepared carefully and realistically based on the principle of prudence and the application of risk management, with a comprehensive scope;
c. that the preparation of the business plan as a means for banks to control strategic risk must take into account external factors and internal factors;
d. that a realistic business plan is also needed by the monetary authority as consideration in establishing policies and conducting macro-prudential supervision; e. that the business plan is one of the references for bank supervisors in formulating optimal and effective risk-based supervision plans; f. that based on the considerations as referred to in letters a, b, c, d, and e, it is deemed necessary to establish a Financial Services Authority Regulation concerning Bank Business Plans;

Recalling:

1. Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1992 Number 31, Supplement to the State Gazette of the Republic of Indonesia Number 3472) as amended by Law Number 10 of 1998 (State Gazette of the Republic of Indonesia Year 1998 Number 182, Supplement to the State Gazette of the Republic of Indonesia Number 3790);
2. Law Number 21 of 2008 concerning Islamic Banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette of the Republic of Indonesia Number 4867);
3. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);

DECIDING:

To Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING BANK BUSINESS PLANS.

CHAPTER I

GENERAL PROVISIONS

Article 1

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

1. Bank is a general bank as referred to in Law Number 7 of 1992 concerning Banking as amended by Law Number 10 of 1998, including branches of banks located abroad, as well as general Islamic banks and Islamic business units as referred to in Law Number 21 of 2008 concerning Islamic Banking.

2. Business Plan is a written document describing the Bank's short-term (one year) and medium-term (three years) business activity plans, including plans to improve business performance and strategies to realize such plans according to established targets and timeframes, while still observing the fulfillment of prudential regulations and the application of risk management.

3. Business Plan Realization Report is a report from the Bank's Board of Directors regarding the realization of the Business Plan up to a certain period.

4. Business Plan Supervision Report is a report from the Bank's Board of Commissioners regarding the results of supervision concerning the implementation of the Business Plan up to a certain period.

5. Board of Directors:
   a. for Banks in the form of a Limited Liability Company (Perseroan Terbatas) is the Board of Directors as referred to in Law Number 40 of 2007 concerning Limited Liability Companies; b. for Banks in the form of legal entities:
   1) Regional Public Enterprises or Regional State-Owned Enterprises is the Board of Directors as referred to in Law Number 23 of 2014 concerning Regional Government as amended lastly by Law Number 9 of 2015;
   2) Regional Enterprises is the Board of Directors in Banks that have not yet changed their form into Regional Public Enterprises or Regional State-Owned Enterprises according to Law Number 23 of 2014 concerning Regional Government as amended lastly by Law Number 9 of 2015;
   c. for Banks in the form of a Cooperative legal entity is the Management as referred to in Law Number 25 of 1992 concerning Cooperatives;
   d. for Banks with the status of branches of banks located abroad is the Branch Manager and officials one level below the Branch Manager.

6. Board of Commissioners:
   a. for Banks in the form of a Limited Liability Company (Perseroan Terbatas) is the Board of Commissioners as referred to in Law Number 40 of 2007 concerning Limited Liability Companies; b. for Banks in the form of legal entities:
   1) Regional Public Enterprises is the Supervisory Board as referred to in Law Number 23 of 2014 concerning Regional Government as amended lastly by Law Number 9 of 2015;
   2) Regional State-Owned Enterprises is Commissioners as referred to in Law Number 23 of 2014 concerning Regional Government as amended lastly by Law Number 9 of 2015;
   3) Regional Enterprises is the Supervisors in Banks that have not yet changed their form into Regional Public Enterprises or Regional State-Owned Enterprises according to Law Number 23 of 2014 concerning Regional Government as amended lastly by Law Number 9 of 2015;
   c. for Banks in the form of a Cooperative legal entity is the Supervisors as referred to in Law Number 25 of 1992 concerning Cooperatives;
   d. for Banks with the status of branches of banks located abroad is the party appointed to carry out supervisory functions.

Article 2

(1) Banks are required to prepare a Business Plan realistically every year.
(2) In preparing the Business Plan as referred to in paragraph (1), Banks take into account:
a. external and internal factors that can affect the Bank's business continuity; b. the principle of prudence;
c. the application of risk management; and
d. the principles of healthy banking.
(3) For general banks that have Islamic business units, the Business Plan as referred to in paragraph (1) must also contain a specific Business Plan for the Islamic business unit which is an integral part of the general bank's Business Plan. (4) The Business Plan must be prepared by the Board of Directors and approved by the Board of Commissioners.

Article 3

(1) The Board of Directors is required to implement the Business Plan effectively.
(2) The Board of Directors is required to communicate the Business Plan to:
a. the Bank's shareholders; and b. all levels of the organization within the Bank.

Article 4

The Board of Commissioners is required to supervise the implementation of the Business Plan.

CHAPTER II

SCOPE OF THE BUSINESS PLAN

Article 5

The Business Plan as referred to in Article 2 must at least include:
a. executive summary; b. management policies and strategies;
c. application of risk management and current Bank performance;
d. projected financial statements along with the assumptions used; e. projections of ratios and other specific items; f. funding plans; g. investment plans; h. capital participation plans;
i. capital plans;
j. organizational and human resource development plans; k. plans for issuing products and/or carrying out new activities;
l. plans for developing and/or changing the office network; and
m. other information.

Article 6

The executive summary as referred to in Article 5 letter a must at least include:
a. the Bank's vision and mission; b. the Bank's policy direction;
c. strategic steps to be taken by the Bank;
d. key financial indicators; and e. short-term and medium-term business activity targets.

Article 7

Management policies and strategies as referred to in Article 5 letter b must at least include:
a. analysis of the Bank's position in facing business competition; b. management policies (policy statements);
c. risk management and compliance policies;
d. business development strategies; and e. human resource development strategies and remuneration policies.

Article 8

Application of risk management and current Bank performance as referred to in Article 5 letter c must at least include:
a. application of risk management, including risk profile assessment for all risks; b. application of good corporate governance;
c. financial performance, especially from the capital and earnings aspects;
d. realization of credit or financing provided to Micro, Small, and Medium Enterprises (MSMEs); and e. application of compliance with Sharia principles, specifically for general Islamic banks and Islamic business units.

Article 9

Projected financial statements along with the assumptions used as referred to in Article 5 letter d must at least include:
a. financial position (balance sheet); b. profit and loss;
c. commitments and contingencies; and
d. macro and micro assumptions used.

Article 10

Projections of ratios and other specific items as referred to in Article 5 letter e must at least include:
a. projections of core financial ratios; and b. projections of other specific items.

Article 11

Funding plans as referred to in Article 5 letter f must at least include:\ a. plans for raising third-party funds;\ b. plans for issuing securities; and\
c. other funding plans.

Article 12

Investment plans as referred to in Article 5 letter g must at least include:\ a. plans for providing funds to related parties;\ b. plans for providing credit or financing to core debtors;\
c. plans for providing credit or financing based on specific business activities;\
d. plans for providing credit or financing based on:\
1. business sector;\
2. type of use;\
3. province; and\
4. type of contract, specifically for general Islamic banks and Islamic business units;\
e. plans for providing credit or financing to MSMEs based on:\
1. business sector;\
2. type of use; and\
3. province;\
f. plans for investing in the form of securities; and\ g. other investment plans.

Article 13

(1) Capital participation plans as referred to in Article 5 letter h must at least include:\ a. business sector;\ b. estimated amount of funds to be invested; and\
c. ownership percentage including control aspects,\
as regulated in provisions concerning prudential principles in capital participation activities.
(2) Included in capital participation plans are plans for the separation (spin-off) of Islamic business units from general banks that have Islamic business units.

Article 14

Capital plans as referred to in Article 5 letter i must at least include:\ a. projections of Minimum Capital Requirement (KPMM) fulfillment; and\ b. plans for capital changes.

Article 15

Organizational and human resource development plans as referred to in Article 5 letter j must at least include:\ a. organizational development plans;\ b. management information system development plans;\
c. human resource development plans; and\
d. plans for utilizing foreign workers and the use of contract labor (outsourcing).

Article 16

Plans for issuing products and/or carrying out new activities as referred to in Article 5 letter k must at least include:\ a. plans for issuing new products; and\ b. plans for carrying out new activities.

Article 17

Plans for developing and/or changing the office network as referred to in Article 5 letter l must at least include:\ a. for general banks, plans for opening regional offices, branches, functional offices, sub-branches, cash offices, cash service activities, and offices abroad, including plans for developing and changing the office network for Islamic business units; and\ b. for general Islamic banks, plans for opening regional offices, branches, functional offices, sub-branches, cash offices, cash service activities, and offices abroad.

Article 18

Other information as referred to in Article 5 letter m must at least include information that needs to be submitted because it affects the Bank's business activities, which is not mentioned in the scope of the Business Plan as referred to in Article 5 letters a through l.

CHAPTER III

SUBMISSION, AMENDMENT, AND REPORTING OF THE BUSINESS PLAN

Article 19

(1) Banks are required to submit the Business Plan as referred to in Article 2 to the Financial Services Authority no later than the end of November before the Business Plan year begins. (2) The Financial Services Authority has the authority to request Banks to make adjustments if the submitted Business Plan is deemed not to fully meet the regulations as set forth in this Financial Services Authority Regulation. (3) Banks are required to submit adjustments to the Business Plan as referred to in paragraph (2) to the Financial Services Authority no later than 15 (fifteen) working days after the date of the letter from the Financial Services Authority.

Article 20

(1) Banks may only make changes to the Business Plan as referred to in Article 2 in the event:\ a. there are external and internal factors that significantly affect Bank operations; and/or\ b. there are factors that significantly affect Bank performance, based on the consideration of the Financial Services Authority. (2) Changes to the Business Plan as referred to in paragraph (1) letter a may only be made 1 (one) time, no later than the end of June of the current year. (3) Changes to the Business Plan as referred to in paragraph (1) letter a must be submitted to the Financial Services Authority no later than 30 (thirty) working days before the implementation of the Business Plan changes. (4) The Financial Services Authority has the authority to request Banks to make adjustments to the changes to the Business Plan as referred to in paragraph (1).

Article 21

(1) Banks are required to submit Business Plan Realization Reports on a quarterly basis.
(2) The reports as referred to in paragraph (1) must be submitted to the Financial Services Authority with the following deadlines:\ a. no later than 1 (one) month after the relevant quarter ends; or\ b. no later than 45 (forty-five) calendar days after the relevant quarter ends, for Banks whose inter-branch systems are not yet online and which have more than 100 (one hundred) branches. (3) The reports as referred to in paragraph (1) must include:\ a. explanations regarding the achievement of the Business Plan;\ b. explanations regarding deviations in the realization of the Business Plan;\
c. follow-up actions on the achievement of the Business Plan;\
d. financial ratios and specific items; and\ e. other information.

Article 22

(1) Banks are required to submit Business Plan Supervision Reports on a semi-annual basis.
(2) The reports as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 2 (two) months after the relevant semester ends. (3) The reports as referred to in paragraph (1) must at least include the Board of Commissioners' assessment regarding:\ a. the implementation of the Business Plan both quantitatively and qualitatively;\ b. factors affecting Bank performance; and\
c. efforts to improve Bank performance.

Article 23

(1) A Bank is declared late in submitting the Business Plan as referred to in Article 19 paragraph (1) if the Bank submits the Business Plan after the submission deadline up to a maximum of 30 (thirty) working days. (2) A Bank is declared late in submitting adjustments to the Business Plan as referred to in Article 19 paragraph (3) if the Bank submits the adjustments after the submission deadline up to a maximum of 15 (fifteen) working days. (3) A Bank is declared not to have submitted the Business Plan as referred to in Article 19 paragraph (1) or adjustments to the Business Plan as referred to in Article 19 paragraph (3) if, by the end of the delay period as referred to in paragraph (1) or paragraph (2), the Bank has not yet submitted the Business Plan or adjustments to the Business Plan. (4) Banks declared not to have submitted the Business Plan or adjustments to the Business Plan as referred to in paragraph (3) remain required to submit the Business Plan or adjustments to the Business Plan to the Financial Services Authority.

Article 24

(1) A Bank is declared late in submitting the Business Plan Realization Report as referred to in Article 21 paragraph (1) if the Bank submits the Business Plan Realization Report after the submission deadline up to a maximum of 30 (thirty) working days. (2) A Bank is declared late in submitting the Business Plan Supervision Report as referred to in Article 22 paragraph (1) if the Bank submits the Business Plan Supervision Report after the submission deadline up to a maximum of 30 (thirty) working days. (3) A Bank is declared not to have submitted the Business Plan Realization Report as referred to in Article 21 paragraph (1) or the Business Plan Supervision Report as referred to in Article 22 paragraph (1) if, by the end of the delay period for the Bank being declared late as referred to in paragraph (1) or paragraph (2), the Bank has not yet submitted the respective reports. (4) Banks declared not to have submitted the Business Plan Realization Report or the Business Plan Supervision Report as referred to in paragraph (3) remain required to submit the reports to the Financial Services Authority.

Article 25

If the final submission deadline for the Business Plan as referred to in Article 19 paragraph (1), the submission of the Business Plan Realization Report as referred to in Article 21 paragraph (2), and the submission of the Business Plan Supervision Report as referred to in Article 22 paragraph (2) falls on a Saturday, Sunday, or public holiday, the Business Plan, Business Plan Realization Report, and Business Plan Supervision Report must be submitted on the next working day.

Article 26

The Business Plan and adjustments to the Business Plan as referred to in Article 19 paragraph (1) and paragraph (3), the Business Plan Realization Report as referred to in Article 21 paragraph (1), and the Business Plan Supervision Report as referred to in Article 22 paragraph (1) must be submitted to the Financial Services Authority at the address:\ a. The Relevant Bank Supervision Department, Islamic Banking Department, or Regional Office 1 Jabodetabek, Banten, Lampung, and Kalimantan, for Banks with headquarters or branches of banks located abroad in the Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek) area and Banten Province; or\ b. The Regional Office of the Financial Services Authority or the Local Financial Services Authority Office, for Banks with headquarters outside the Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodetabek) area and Banten Province.

CHAPTER IV

OTHER PROVISIONS

Article 27

Banks conducting business activities based on Sharia principles must apply the regulations as set forth in this Financial Services Authority Regulation in accordance with the characteristics of the Bank's business and Sharia principles.

CHAPTER V

SANCTIONS

Article 28

(1) Banks that are late in submitting:\ a. the Business Plan or adjustments to the Business Plan as referred to in Article 23 paragraph (1) or paragraph (2);\ b. the Business Plan Realization Report as referred to in Article 24 paragraph (1); or\
c. the Business Plan Supervision Report as referred to in Article 24 paragraph (2),\
shall be subject to administrative sanctions in the form of a fine of Rp1,000,000.00 (one million rupiah) per working day of delay for each report.
(2) Banks that do not submit the Business Plan as referred to in Article 23 paragraph (3) or the Business Plan Realization Report or Business Plan Supervision Report as referred to in Article 24 paragraph (3) shall be subject to administrative sanctions in the form of a fine of Rp50,000,000.00 (fifty million rupiah) for each report. (3) Banks that submit adjustments to the Business Plan as referred to in Article 19 paragraph (3), but:\ a. are deemed significantly incomplete; and/or\ b. are not accompanied by material documents and information,\ according to the scope established in this Financial Services Authority Regulation and/or other related implementation provisions, shall be subject to administrative sanctions in the form of a fine of Rp50,000,000.00 (fifty million rupiah). (4) Banks are subject to sanctions as referred to in paragraph (3) after:\ a. the Bank is given 2 (two) written warnings by the Financial Services Authority with a grace period of at least 7 (seven) working days for each written warning; and\ b. the Bank does not correct the adjustments to the Business Plan within a period of 7 (seven) working days after the last written warning.

Article 29

Banks that do not comply with the regulations as set forth in Article 2 paragraph (1), Article 2 paragraph (3), Article 2 paragraph (4), Article 3, Article 4, Article 19 paragraph (1), Article 19 paragraph (3), Article 20 paragraph (1), Article 20 paragraph (2), Article 20 paragraph (3), Article 21 paragraph (1), Article 21 paragraph (2), Article 22 paragraph (1), Article 22 paragraph (2), Article 23 paragraph (4), Article 24 paragraph (4), or Article 27 shall be subject to administrative sanctions in the form of:\ a. written warnings;\ b. downgrade of the Bank's health level;\
c. suspension of certain business activities; and/or\
d. listing of Bank management and/or shareholders in the list of parties deemed not to have passed the assessment of competence and propriety.

CHAPTER VI

CLOSING PROVISIONS

Article 30

Further provisions regarding this Financial Services Authority Regulation shall be established in a Financial Services Authority Circular.

Article 31

(1) Upon the commencement of this Financial Services Authority Regulation, Bank Indonesia Regulation Number 12/21/PBI/2010 dated October 19, 2010 concerning Bank Business Plans (State Gazette of the Republic of Indonesia Year 2010 Number 120, Supplement to the State Gazette of the Republic of Indonesia Number 5161) is repealed and declared invalid. (2) Implementation regulations of Bank Indonesia Regulation Number 12/21/PBI/2010 dated October 19, 2010 concerning Bank Business Plans remain valid as long as they do not conflict with the provisions in this Financial Services Authority Regulation.

Article 32

This Financial Services Authority Regulation shall come into force on the date of its promulgation.

To ensure that everyone knows it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on January 26, 2016

THE CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY,

signed

MULIAMAN D. HADAD

Promulgated in Jakarta on January 27, 2016

MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,

signed

YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 17

Copy matches the original
Director of Legal Affairs 1
Legal Department

signed

Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 5/POJK.03/2016
CONCERNING
BANK BUSINESS PLANS

I. GENERAL

In order to maintain the resilience of a healthy banking system, banks need to take steps to improve good corporate governance. As one of the steps in applying the principles of good corporate governance, banks need to formulate and determine strategic objectives and a set of corporate values. Subsequently, the aforementioned strategic objectives and corporate values are further elaborated in the Business Plan, as the foundation and reference for carrying out operational activities in accordance with the bank's vision and mission.

In order to achieve the objectives in accordance with the vision and mission, the formulation of the Bank's Business Plan must be conducted thoroughly and realistically while still paying attention to the principle of prudence and the application of risk management. In addition, planning must be conducted comprehensively by the Bank so that it better reflects the complexity of the business and can accommodate the direction of the Bank's business development. A comprehensive Business Plan can also increase the Bank's operational flexibility in facing increasingly intense business competition.

In formulating the Business Plan, banks must also consider external and internal factors that directly or indirectly can affect the continuity of the Bank's business so that realistic plans can be generated.

A realistic Business Plan is one of the efforts to apply risk management effectively, specifically strategic risk. The direction of business development outlined in the Business Plan is one of the factors considered by monetary authorities in establishing macro-prudential policies to maintain financial system stability. Therefore, the formulation of realistic Business Plans must be directed and supervised so that it can support the implementation of macro policies accurately.

On one hand, the Business Plan is a very important reference for bank supervisors in formulating Individual Supervisory Plans, as part of the implementation of the risk-based bank supervision cycle. On the other hand, the earlier formulation of the Business Plan will also help facilitate the smooth implementation of the Bank's operational activities from the beginning of the year.

In light of the above, in order for the Business Plan to be used as one of the means to achieve the Bank's vision and mission, support macro-prudential policies, and supervision strategies for individual banks, regulations concerning Bank Business Plans need to be established.

II. ARTICLE BY ARTICLE

Article 1
Clear enough.

Article 2
Paragraph (1)
Clear enough.

Paragraph (2)
What is meant by external factors includes, among others, economic conditions, social and political developments, and technology.
What is meant by internal factors includes, among others, financial conditions, management, and other infrastructure capabilities.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Article 3
Paragraph (1)
The Business Plan is implemented effectively if between the realization and the Business Plan there is:
a. immaterial deviation; or b. material deviation, but the Bank has made maximum efforts to fulfill it accompanied by adequate and acceptable (reasonable) explanations.

Paragraph (2)
Letter a
Communication with shareholders can be conducted, among others, through the General Meeting of Shareholders.

Letter b
Communication of the Business Plan to all levels of the organization existing in the Bank is conducted with the aim so that the policies and implementation of the Business Plan by all parties involved are in line with the Bank's vision and mission.

Article 4
Clear enough.

Article 5
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Clear enough.

Letter f
Clear enough.

Letter g
Clear enough.

Letter h
Clear enough.

Letter i
Clear enough.

Letter j
Clear enough.

Letter k
Included in the plan for the issuance of products and/or implementation of new activities, for example, the plan for the issuance of structured products.

Letter l
Clear enough.

Letter m
Clear enough.

Article 6
Letter a
Clear enough.

Letter b
The Bank's policy direction contains information regarding the direction and policy of business development to be conducted by the Bank in the short term for 1 (one) year ahead and in the medium term for 3 (three) years ahead.

Letter c
Clear enough.

Letter d
Key financial indicators include, among others, the Bank's performance at the end of September in the year of formulating the Business Plan and projections of capital adequacy, profitability, risk assessment, specifically credit risk, market risk, and liquidity risk, as well as third-party funds and other financial ratios.

Letter e
Clear enough.

Article 7
Letter a
Analysis is conducted both at the industry level and against the business group. In this case, it is also necessary to explain the problems and obstacles faced by the Bank.

Letter b
Description regarding management policies includes general information on the Bank's policies established by management in the development of the Bank's business in the future.

Letter c
Description regarding risk management and compliance policies includes information on steps in applying risk management formulated based on the evaluation of the Bank's risk profile and improvement efforts to be taken, as well as explanations of policies in implementing the compliance function.

Letter d
Description regarding business development strategies includes, among others, information on strategic steps to achieve the Bank's established business objectives, including explanations regarding organizational development strategies and information system technology strategies, as well as strategies to anticipate changes in external conditions.

Letter e
Description regarding remuneration policies (remuneration policies) must at least include information on general policies regulating the provision of salaries, bonuses (benefits), and other financial facilities to the Board of Commissioners and Board of Directors of the Bank, including to employees and to the Sharia Supervisory Board for conventional commercial banks and Sharia business units. What is meant by “Sharia Supervisory Board” is the Sharia Supervisory Board as referred to in regulations concerning conventional commercial banks and Sharia business units.

Article 8
Letter a
Description regarding the application of risk management includes evaluations and results of the application of risk management for the period from the beginning of the year to the last position at the time of formulating the Business Plan. Description regarding risk profile assessment includes information on the Bank's assessment of the level and trend of all risk exposures. The procedure for formulating the risk profile refers to regulations concerning the application of risk management for Banks.

Letter b
Description regarding the application of good corporate governance refers to regulations concerning the implementation of good corporate governance for Banks.

Letter c
Description regarding the Bank's financial performance includes the results of the implementation of action plans, if any, in order to improve the Bank's performance as regulated in regulations concerning the assessment of the Bank's health level. Description regarding the financial performance from the aspects of capital adequacy and profitability includes information on the conditions of capital adequacy and profitability, both qualitatively and quantitatively.

Letter d
Description regarding the realization of the granting of credit or financing reflects the Bank's role in supporting the development of MSMEs.
The grouping of MSMEs refers to business criteria based on Law Number 20 of 2008 concerning Micro, Small, and Medium Enterprises.

Letter e
Clear enough.

Article 9
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
The assumptions stated are the assumptions used by the Bank to formulate the Business Plan.
What is meant by macro assumptions includes, among others, economic growth, exchange rates, and inflation rates.
While what is meant by micro assumptions includes, among others, the level of competition among banks and the growth of the banking industry's credit.
As one of the references in formulating the Business Plan, banks can view the macro indicators available in the publications of the competent authority.

Article 10
Letter a
Projections of core financial ratios include ratios that can provide at least sufficient information for the assessment of capital adequacy, profitability, credit risk, market risk, and liquidity risk.

Letter b
Projections of certain other items include projections of several ratios related to credit or financing to MSME debtors, education fund ratios, and ratios of fixed assets not used in Bank operations to capital.

Article 11
Letter a
The plan for the collection of third-party funds includes plans for collecting current accounts, savings, time deposits, and other forms equivalent to them, as well as information regarding core depositors and/or core deposits.

Letter b
The plan for the issuance of securities includes plans for the issuance of securities such as convertible bonds, medium-term notes, bonds, and sukuk.

Letter c
Clear enough.

Article 12
Letter a
What is meant by “related parties” is related parties as regulated in regulations concerning maximum credit limits or maximum fund disbursement limits.

Letter b
Core debtors are individual debtors or group debtors (one obligor concept) that are core debtors outside of related parties.

Letter c
Certain business activities are business activities that are the focus of most of the Bank's credit or financing grants.

Letter d
The distribution of credit or financing based on business fields, types of use, provinces, and types of contracts refers to regulations concerning guidelines for the preparation of monthly Bank reports.

Letter e
The distribution of credit or financing based on business fields, types of use, and provinces refers to regulations concerning guidelines for the preparation of monthly Bank reports.

Letter f
The investment of funds in the form of securities is classified according to measurement categories, namely:

1. measured at fair value through profit or loss;
2. available for sale;
3. held to maturity; or
4. loans given and receivables.

Letter g
Includes plans for the Bank's investment of funds in the form of productive assets that are not yet included in the scope of letters a through f.

Article 13
Paragraph (1)
In formulating the capital participation plan, banks must pay attention to the requirements and procedures for capital participation as regulated in regulations concerning prudential principles in conducting capital participation.

Paragraph (2)
What is meant by “separation (spin-off)” is separation as regulated in regulations concerning Sharia business units.

Article 14
Letter a
Projections of KPMM (Minimum Capital Requirements) fulfillment include projections of calculations of the minimum capital adequacy ratio referring to regulations concerning Bank KPMM.

Letter b
Included in the capital change plan are plans for adding capital from existing shareholders, initial public offering (IPO) plans, right issues, the issuance of equity-type securities, and other capital addition plans, including changes in net funds for Sharia business units.

Article 15
Letter a
Included in the organizational development plan are plans for the formation or change of work units and/or committees, adjusted to the size and complexity of the Bank's business.

Letter b
Included in the management information system development plan are plans for the development of information technology supporting management information systems.

Letter c
Included in the human resource development plan are plans for human resource education and training needs, including plans for education and training costs or budgets as regulated in applicable regulations.

Letter d
Included in the plan for the utilization of foreign labor is the plan for the utilization of foreign labor as regulated in applicable regulations.
What is meant by “plan for the use of outsourcing labor” is the plan for the use of labor outside permanent labor, including the number and fields of assignment.

Article 16
Letter a
Plans for the issuance of new products that need to be included in the Business Plan refer to regulations concerning business activities based on the Bank's core capital.

Letter b
Plans for the implementation of new activities that need to be included in the Business Plan refer to regulations concerning business activities based on the Bank's core capital.

Article 17
Definitions of regional offices, branch offices, functional offices, sub-branch offices, cash offices, cash service activities, and offices abroad refer to regulations concerning commercial banks conducting conventional activities, commercial Sharia banks, or Sharia business units.

Article 18
Other information includes matters that need to be known or monitored by the Financial Services Authority, including other business plans required by other regulations to be included in the Business Plan. Examples of other information are steps to resolve problematic credit or financing, including taken-over collateral (AYDA), fixed assets not used in Bank operations, linkage programs, and/or Bank service development. Bank service development includes, among others, information on plans for the development of information facilities or media for customers, plans for the development of electronic facilities for customer needs, plans for customer protection efforts, and plans for organizing financial services without offices as part of inclusive finance.

Article 19
Paragraph (1)
The Business Plan is submitted in hard copy and soft copy.

Paragraph (2)
If necessary, the Financial Services Authority may request the Bank to conduct a comprehensive presentation or explanation regarding the Business Plan submitted by the Bank.

Paragraph (3)
Clear enough.

Article 20
Paragraph (1)
If necessary, the Financial Services Authority may request the Bank to conduct a comprehensive presentation or explanation regarding changes to the Business Plan. For commercial banks that have Sharia business units, changes to the Business Plan are made both for the interests of the Bank as a whole and for the interests of the Sharia business unit. Changes to the Business Plan submitted by the Bank are accompanied by written reasons for the changes.

Letter a
Clear enough.

Letter b
Factors that significantly affect the Bank's performance include, among others, solvency problems, liquidity, and/or macroeconomic external problems that significantly impact the Bank's performance.

Paragraph (2)
The restriction on the frequency of changes and the time limit in this paragraph is intended so that the Bank can make more realistic plans when formulating the Business Plan. For commercial banks that have Sharia business units, the restriction on the frequency of changes to the Business Plan and the time limit for implementing changes apply to the Bank on a consolidated basis, including with the Sharia Business Unit (UUS).

Paragraph (3)
Clear enough.

Paragraph (4)
If necessary, the Financial Services Authority may request the Bank to conduct a comprehensive presentation or explanation regarding the adjusted Business Plan.

Article 21
Paragraph (1)
What is meant by “quarterly” is the end position of the months of March, June, September, and December.
Reports are submitted in the form of a comparison between the Business Plan and the Business Plan realization.
For commercial banks that have Sharia business units, the Business Plan Realization Report also includes specific realization reports for the Sharia business unit, which are an integral part of the Commercial Bank's Business Plan Realization Report.

Paragraph (2)
Clear enough.

Paragraph (3)
Letter a
Explanation statements in this letter include the focus and priority of achieving the Business Plan.

Letter b
Explanation statements in this letter include explanations regarding the magnitude of deviations and obstacles faced.

Letter c
Follow-up statements in this letter include efforts to improve the realization of the Business Plan.

Letter d
Clear enough.

Letter e
Other information contains explanations regarding the realization of matters other than those explained in letters a, b, c, and d, including, among others, reports on the realization of branch network changes and reports on the realization of linkage programs.

Article 22
Paragraph (1)
What is meant by “semi-annual” is the end position of the months of June and December.

For Commercial Banks that have Sharia business units, the Business Plan Supervision Report also includes specific supervision reports for the Sharia business unit, which are an integral part of the Commercial Bank's Business Plan Supervision Report.

Paragraph (2)
Clear enough.

Paragraph (3)
Letter a
Clear enough.

Letter b
Factors affecting the Bank's performance include factors affecting the risk profile, capital adequacy, profitability, and good corporate governance.

Letter c
Efforts to improve the Bank's performance are improvements to the factors referred to in letter b.

Article 23
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Banks are required to continue to submit Business Plans, considering that Business Plans are the basis for Banks to provide policy directions in conducting business activities in order to achieve vision and mission. Meanwhile, for the Financial Services Authority, Bank Business Plans are used as a reference in planning and implementing bank supervision strategies.

Article 24
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Banks are required to continue to submit Business Plan Realization Reports or Business Plan Supervision Reports, considering that for the Financial Services Authority, these reports are one of the means of bank supervision, specifically to monitor the effectiveness and consistency of the implementation of the Bank's Business Plan.

Article 25
What is meant by “holiday” is national holidays established by the central government and/or local holidays established by local governments.

Article 26
Clear enough.

Article 27
Clear enough.

Article 28
Paragraph (1)
Clear enough.

Paragraph (2)
Banks that have been subject to administrative sanctions in the form of fines in this paragraph are not subject to late sanctions as referred to in paragraph (1).

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Article 29
Clear enough.

Article 30
Clear enough.

Article 31
Clear enough.

Article 32
Clear enough.

SUPPLEMENT TO THE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5841