Financial Services Authority Regulation Number 62 of 2020 Concerning Rural Credit Banks

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 62 /POJK.03/2020
CONCERNING
RURAL CREDIT BANKS
BY THE GRACE OF THE ALMIGHTY GOD,
THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that to encourage the optimal and sustainable growth of the national economy, policies are needed to encourage the increase in the competitiveness and contribution of the rural credit bank industry to the regional economy; b. that to increase the role of the rural credit bank industry, efforts are needed to strengthen institutions through strengthening capitalization from the early stages of establishment in accordance with policies to encourage consolidation, institutional restructuring, and increased owner commitment, improved quality and function of management, strengthening of the office network function, improvement of the mechanism for revoking business licenses upon the request of shareholders, and improvement of institutional licensing procedures to be more effective and efficient;

c. that the Financial Services Authority Regulation Number 20/POJK.03/2014 concerning Rural Credit Banks is considered no longer in line with the dynamic development of banking, so it is necessary to update certain aspects of the regulations to accommodate the increase in the competitiveness and contribution of rural credit banks;
d. that based on the considerations referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning Rural Credit Banks; Considering:

Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1992 Number 31, Supplement to the State Gazette of the Republic of Indonesia Number 3472) as amended by Law Number 10 of 1998 concerning Amendments to Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1998 Number 182, Supplement to the State Gazette of the Republic of Indonesia Number 3790);
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:
Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING RURAL CREDIT BANKS.

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

Rural Credit Bank, hereinafter abbreviated as BPR, is a bank that conducts conventional business activities and does not provide services in payment transactions in its operations.
Conventional Universal Bank, hereinafter abbreviated as BUK, is a universal bank that conducts conventional business activities and provides services in payment transactions in its operations.
Sharia Rural Financing Bank, hereinafter abbreviated as BPRS, is a Sharia bank that does not provide services in payment transactions in its operations.
Office Network is a BPR office that includes branch offices, cash offices, cash service activities, and electronic banking devices.
Branch Office is a BPR office that is directly responsible to the BPR head office, with a clear business address where the Branch Office conducts its business.
Cash Office is a BPR office that provides cash services, excluding the provision of credit to help the parent office, with a clear business address where the Cash Office conducts its business.
Cash Service Activity is an activity that includes mobile cash, payment points, and service activities using electronic banking devices.
Mobile Cash is a Cash Service Activity to serve the public by moving around using transportation or at specific locations on a non-permanent basis.
Payment Point is a Cash Service Activity to serve the public in the form of payment services or receipt of payments through agreements between the BPR and other parties at a specific location.
Electronic Banking Device, hereinafter abbreviated as PPE, is a banking service activity to serve the public using electronic devices but excluding the provision of giro instruments, located both inside and outside the BPR office.
General Meeting of Shareholders, hereinafter abbreviated as RUPS, is a general meeting of shareholders for BPRs in the form of limited liability companies or regional joint-stock companies, a regional head meeting representing the regional government in the ownership of separated regional assets in regional public enterprises for BPRs in the form of regional public enterprise legal entities, a member meeting for BPRs in the form of cooperative legal entities, or a shareholder meeting for BPRs in the form of regional enterprise legal entities.
Controlling Shareholder, hereinafter abbreviated as PSP, is a legal entity, individual, and/or business group that owns 25% (twenty-five percent) or more of the issued shares with voting rights of the company or BPR, or owns less than 25% (twenty-five percent) of the issued shares with voting rights but can be proven to have controlled the company or BPR, directly or indirectly.
Board of Directors is the board of directors for BPRs in the form of limited liability companies, regional public enterprises, regional joint-stock companies, regional enterprises, or management for BPRs in the form of cooperative legal entities.
Board of Commissioners is the board of commissioners for BPRs in the form of limited liability companies, commissioners for BPRs in the form of regional joint-stock companies, supervisory boards for BPRs in the form of regional public enterprises and regional enterprises, and supervisors for BPRs in the form of cooperative legal entities.
Executive Officer is a BPR officer who is directly responsible to members of the Board of Directors or has significant influence on BPR policies and/or operations.
Working Day is a working day of the Financial Services Authority.

CHAPTER II
ESTABLISHMENT OF BPR
Article 2
(1) BPR is established based on:
a. application by prospective PSP; b. change of business license from BUK to BPR business license; or
c. change of business license from microfinance institution to BPR business license, implemented in accordance with regulations concerning the transformation of microfinance institutions into BPR.
(2) BPR as referred to in paragraph (1) conducts business activities after obtaining a license from the Financial Services Authority.

Article 3
(1) BPR is established and owned by:
a. Indonesian citizens; b. Indonesian legal entities whose entire owners are Indonesian citizens; and/or
c. regional governments.
(2) In the event that an Indonesian legal entity as referred to in paragraph (1) letter b is submitted as a prospective PSP, the legal entity must have operated for a period in accordance with Financial Services Authority Regulations concerning the assessment of competence and propriety for key parties of financial service institutions. (3) Based on specific considerations, the Financial Services Authority may determine a different operational period for legal entities as referred to in paragraph (2).

Article 4
(1) The legal form of BPR may be:
a. Regional Public Enterprise; b. Regional Joint-Stock Company;
c. Cooperative; or
d. Limited Liability Company.
(2) The legal form as referred to in paragraph (1) letters a and b includes BPRs in the form of regional enterprise legal entities that have not yet adjusted their legal form to regional public enterprise or regional joint-stock company.

Article 5
(1) BPR must have articles of association that meet the requirements of the articles of association in accordance with regulations and contain statements for:
a. paid-up capital additions resulting in changes to PSP; b. share ownership changes resulting in changes to PSP; and
c. appointment of members of the Board of Directors and members of the Board of Commissioners,
taking effect after obtaining approval from the Financial Services Authority.
(2) BPRs that do not meet the provisions regarding the content of the articles of association as referred to in paragraph (1) are required to adjust the scope of the articles of association at the first RUPS held after this Financial Services Authority Regulation comes into force.

Article 6
(1) The paid-up capital for the establishment of BPR as referred to in Article 2 paragraph (1) letter a is set at a minimum of:
a. IDR 100,000,000,000.00 (one hundred billion rupiah), for BPRs established in zone 1; b. IDR 50,000,000,000.00 (fifty billion rupiah), for BPRs established in zone 2; and
c. IDR 25,000,000,000.00 (twenty-five billion rupiah), for BPRs established in zone 3.
(2) Based on specific considerations, the Financial Services Authority has the authority to determine a higher paid-up capital amount for BPR than the amount referred to in paragraph (1). (3) The paid-up capital for the establishment of BPR as referred to in paragraph (1) must be used for working capital of at least 50% (fifty percent). (4) The BPR establishment zones as referred to in paragraph (1) are determined based on economic potential and the level of competition of financial service institutions in the respective province, as stated in Appendix Part A which is an integral part of this Financial Services Authority Regulation.

Article 7
(1) The paid-up capital as referred to in Article 6 paragraph (1) or paragraph (2) must be placed in the form of deposits at a universal bank in Indonesia or another BPR in the name of "Board of Commissioners of the Financial Services Authority q.q. name of prospective shareholder and/or BPR PSP" with the note for the establishment of BPR, and its withdrawal can only be done after obtaining approval from the Financial Services Authority. (2) The placement of paid-up capital in the form of deposits as referred to in paragraph (1) is done in full for the amount of paid-up capital required according to the zone at the time of submitting the application for principal approval for BPR establishment.

Article 8
(1) BPRs that do not meet the provisions as referred to in Article 5 paragraph (2) and/or Article 6 paragraph (3) are subject to administrative sanctions in the form of written warnings. (2) In the event that BPRs do not meet the provisions and have been subject to administrative sanctions as referred to in paragraph (1), BPRs may be subject to administrative sanctions in the form of a one-predicate downgrade of the BPR's health level.

CHAPTER III
LICENSING OF BPR ESTABLISHMENT
First Section
Application for BPR Establishment
Article 9
The establishment of BPR as referred to in Article 2 paragraph (1) letter a is conducted in 2 (two) stages:
a. principal approval; and b. business license.
Paragraph 1
Principal Approval
Article 10
(1) Applications to obtain principal approval as referred to in Article 9 letter a are submitted by at least 1 (one) prospective PSP to the Financial Services Authority.
(2) The application as referred to in paragraph (1) is accompanied by requirement documents as stated in Appendix Part B which is an integral part of this Financial Services Authority Regulation, including:
a. draft articles of incorporation of the legal entity and draft articles of association; b. ownership data:

for prospective PSP, accompanied by requirement documents in accordance with Financial Services Authority Regulations concerning the assessment of competence and propriety for key parties of financial service institutions;
for prospective shareholders, accompanied by a curriculum vitae list as stated in Appendix Part C which is an integral part of this Financial Services Authority Regulation;
c. list of prospective members of the Board of Directors and prospective members of the Board of Commissioners, accompanied by requirement documents in accordance with Financial Services Authority Regulations concerning the assessment of competence and propriety for key parties of financial service institutions;
d. organizational structure plan, human resource composition, and job descriptions; e. potential and feasibility analysis, as stated in Appendix Part D which is an integral part of this Financial Services Authority Regulation; f. standard operating procedure plan and electronic system and information technology plan; g. proof of full capital deposit as referred to in Article 7 in the form of a photocopy of a deposit slip; h. statement letter from prospective shareholders, that the source of paid-up capital:
does not come from loans or financing facilities in any form from banks and/or other parties; and/or
does not come from and for money laundering and/or terrorism financing and/or proliferation of weapons of mass destruction;
i. list and financial reports from BPRs and/or other financial service institutions owned by prospective PSP; and
j. proof of full payment of BPR establishment licensing fees to the Financial Services Authority.

(3) In the event that a regional government is a prospective shareholder of the BPR, the statement letter from prospective shareholders as referred to in paragraph (2) letter h may be replaced with a regional head decision containing a statement that the source of paid-up capital has been budgeted in the Regional Revenue and Expenditure Budget and has been approved by the Regional People's Representative Council.

Article 11
(1) The Financial Services Authority processes applications and provides approval or rejection of principal approval applications from prospective PSPs within a maximum of 30 (thirty) Working Days since the application and required documents are received in complete form. (2) The time period as referred to in paragraph (1) does not include the time given to prospective PSPs to complete, improve, and/or update the required documents in the principal approval application. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts research on the fulfillment of requirements, including:
a. assessment of potential and feasibility analysis; b. assessment of competence and propriety;
c. research on the source of paid-up capital; and
d. research on financial performance and fulfillment of provisions in BPRs and/or other financial service institutions owned by prospective PSPs.
(4) In addition to the provisions as referred to in paragraph (3), parties applying for BPR establishment must present or explain to the Financial Services Authority regarding the plans and strategies for BPR development.

Article 12
(1) The Financial Services Authority conducts research on the completeness of requirement documents for applications as referred to in Article 10 paragraph (2).
(2) In the event that the research on the completeness of documents as referred to in paragraph (1) is incomplete, the Financial Services Authority notifies the prospective PSP to complete the missing documents and resubmit them to the Financial Services Authority within a maximum of 20 (twenty) Working Days since the date of notification from the Financial Services Authority. (3) In the event that prospective PSPs do not complete, improve, and/or update missing documents within the time limit as referred to in paragraph (2), the prospective PSP is considered to have cancelled the principal approval application. (4) In the event that the principal approval application documents submitted are deemed complete, the Financial Services Authority notifies the prospective PSP that the documents are complete and the approval or rejection process for the principal approval application as referred to in Article 11 paragraph (1) begins to run from the date of notification.

Article 13
(1) In conducting research on the fulfillment of requirements as referred to in Article 11 paragraph (3), the Financial Services Authority may request additional and/or improved documents submitted through notification to prospective PSPs. (2) Additional and/or improved documents as referred to in paragraph (1) are submitted to the Financial Services Authority within a maximum of 30 (thirty) Working Days since the date of notification from the Financial Services Authority. (3) In the event that prospective PSPs do not submit additional and/or improved documents within the time limit as referred to in paragraph (2), the principal approval application for BPR establishment is rejected.

Article 14
(1) Principal approval as referred to in Article 11 paragraph (1) is valid for a period of 1 (one) year from the date of principal approval is granted and cannot be extended.
(2) Prospective PSPs who have obtained principal approval are prohibited from conducting business activities as BPRs before obtaining a business license from the Financial Services Authority. (3) If by the time limit as referred to in paragraph (1) prospective PSPs who have obtained principal approval do not submit a business license application to the Financial Services Authority, the granted principal approval is declared void and invalid. Paragraph 2 Business License
Article 15
Applications to obtain business licenses as referred to in Article 9 letter b are submitted to the Financial Services Authority accompanied by requirement documents as stated in Appendix Part E which is an integral part of this Financial Services Authority Regulation, including:
a. copies of articles of incorporation of the legal entity containing the articles of association of the legal entity and approval from the competent authority; b. ownership data accompanied by requirement documents as referred to in Article 10 paragraph (2) letter b, if changes occur accompanied by copies of amendment articles and registration letters from the competent authority;
c. list of prospective members of the Board of Directors and prospective members of the Board of Commissioners accompanied by requirement documents as referred to in Article 10 paragraph (2) letter c, if changes occur accompanied by copies of amendment articles and registration letters from the competent authority;
d. organizational structure composition, human resource composition, job descriptions, and standard operating procedures; e. proof of operational readiness, including at least:

electronic systems and information technology;
list of fixed assets and inventory;
proof of office building control;
photos and/or videos of office buildings and room layouts;
examples of forms or documents to be used for BPR operations;
Tax Identification Number; and
business registration number serving as a company registration certificate; and
f. list and financial reports from BPRs and/or other financial service institutions owned by prospective PSPs and/or BPR PSPs.

Article 16
(1) The Financial Services Authority processes applications and provides approval or rejection of business license applications within a maximum of 20 (twenty) Working Days since the application and required documents are received in complete form. (2) The time period as referred to in paragraph (1) does not include the time given to BPRs to complete, improve, and/or update the required documents in the business license application. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts research on the fulfillment of requirements, including:
a. assessment of competence and propriety, if changes occur; b. operational readiness; and
c. research on financial performance and fulfillment of provisions in BPRs and/or other financial service institutions owned by prospective PSPs and/or BPR PSPs.

Article 17
(1) The Financial Services Authority conducts research on the completeness of requirement documents for applications as referred to in Article 15.
(2) In the event that the research on the completeness of documents as referred to in paragraph (1) is incomplete, the Financial Services Authority notifies the BPR to complete the missing documents and resubmit them to the Financial Services Authority within a maximum of 20 (twenty) Working Days since the date of notification from the Financial Services Authority. (3) In the event that BPRs do not complete, improve, and/or update missing documents within the time limit as referred to in paragraph (2), the business license application is rejected and the principal approval previously granted by the Financial Services Authority is declared void and invalid. (4) In the event that business license application documents submitted are deemed complete, the Financial Services Authority notifies the BPR that the documents are complete and the approval or rejection process for the business license application as referred to in Article 16 paragraph (1) begins to run from the date of notification.

Article 18
(1) In conducting research on the fulfillment of requirements as referred to in Article 16 paragraph (3), the Financial Services Authority may request additional and/or improved documents submitted through notification to BPRs. (2) Additional and/or improved documents as referred to in paragraph (1) are submitted to the Financial Services Authority within a maximum of 30 (thirty) Working Days since the date of notification from the Financial Services Authority. (3) In the event that BPRs do not submit additional and/or improved documents within the time limit as referred to in paragraph (2), the business license application is rejected and the principal approval previously granted by the Financial Services Authority is declared void and invalid.

Article 19
(1) BPRs that have obtained business licenses from the Financial Services Authority are required to conduct business activities within a maximum of 40 (forty) Working Days from the date the business license is issued. (2) The business activities as referred to in paragraph (1) are activities in performing banking intermediary functions involving the collection and distribution of funds. (3) BPRs are required to report business activities as referred to in paragraph (1) to the Financial Services Authority within a maximum of 10 (ten) Working Days since the date of business activities implementation using example letters as stated in Appendix Part F which is an integral part of this Financial Services Authority Regulation. (4) In the event that BPRs do not conduct business activities within the time limit as referred to in paragraph (1), the business license previously granted to the BPR is declared void and invalid. (5) In the event that BPRs meet the criteria:
a. not actively conducting business activities involving the collection and distribution of funds; and b. not providing banking services on working days and operating hours of the BPR, they are declared not to be conducting business activities as referred to in paragraph (4).

Article 20
BPRs that have obtained business licenses from the Financial Services Authority may include the word "Bank" before the BPR name and are required to be followed by the legal form and the phrase "Rural Credit Bank" or abbreviated as "BPR". Second Section Change of BUK Business License to BPR Business License
Article 21
(1) The establishment of BPR originating from the change of BUK business license to BPR business license as referred to in Article 2 paragraph (1) letter b may be conducted based on:
a. initiative from BUK; or b. decision of the Financial Services Authority.
(2) The issuance of BPR business licenses originating from the change of BUK business licenses as referred to in paragraph (1) is conducted simultaneously with the revocation of BUK business licenses by the Financial Services Authority. (3) BUKs that have obtained business licenses as BPRs as referred to in paragraph (2) are required to adjust all forms and business activities to BPRs within a maximum time limit of 1 (one) year from the date the BPR business license is issued. (4) In the event that, based on the Financial Services Authority's assessment, the adjustment as referred to in paragraph (3) cannot be done within the 1 (one) year time limit, the Financial Services Authority may determine different time limits based on specific considerations.

Paragraph 1
Business License Change Based on Initiative from BUK
Article 22
An application to obtain a business license as a BPR as referred to in Article 21 paragraph (1) letter a is submitted by the BUK to the Financial Services Authority (OJK), accompanied by requirement documents as listed in Appendix Part G which is an integral part of this Financial Services Authority Regulation, including:
a. business license change preparation documents:

minutes of the General Meeting of Shareholders agreeing to the plan to change the BUK's business license to a BPR;
reasons for changing the BUK's business license to a BPR;
list of shareholders:
a) for individuals, must be accompanied by documents at least containing a statement letter from the PSP stating their willingness to overcome the capital and liquidity difficulties faced by the BPR in conducting its business; b) for legal entities, must be accompanied by documents at least:

a statement letter from the legal entity's management stating their willingness to overcome the capital and liquidity difficulties faced by the BPR in conducting its business activities, if the legal entity is a BPR PSP;
a statement letter from the previous PSP stating their willingness to overcome the capital and liquidity difficulties faced by the BPR in conducting its business activities; and
a statement letter from the legal entity's management stating that they have provided correct and complete information regarding the BPR business group structure up to the previous PSP, if the legal entity is a BPR PSP.

list of Board of Directors members and Board of Commissioners members:
a) if there are no changes, accompanied by documents at least:

proof of participation in the maintenance of work competency certification programs in the field of BPR;
a statement letter from the Board of Directors and Board of Commissioners members stating that they meet the provisions regulating that the majority of Board of Directors and Board of Commissioners members do not have family or in-law relationships up to the second degree with other Board of Directors or Board of Commissioners members as regulated in this Financial Services Authority Regulation;
a statement letter from Board of Directors members stating that they do not hold concurrent positions in banks, non-bank companies, and/or other institutions as regulated in this Financial Services Authority Regulation;
a statement letter from Board of Commissioners members stating that they do not hold concurrent positions exceeding the provisions as regulated in this Financial Services Authority Regulation;
b) if there are changes, accompanied by requirement documents in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for key parties of financial service institutions.

organizational structure plan, human resource composition, and job descriptions;
business plan as a BPR;
infrastructure readiness plan;
operational readiness plan;
latest financial reports in BUK financial report format and BPR financial reports; and
proof of announcement and socialization of the business license change plan from BUK to BPR to all customers and the public.
b. action plan documents regarding:
draft deed of amendment of the Articles of Association and ownership status including the change of open company status to a closed corporation;
cessation of BUK business activities not permitted for BPR; and
adjustment of BUK office network types and areas not permitted for BPR.

Article 23
(1) The Financial Services Authority processes the application and provides approval or rejection of the BUK business license change application to a BPR business license as referred to in Article 22 within a maximum of 30 (thirty) Working Days since the complete application and required documents are received. (2) The time period as referred to in paragraph (1) does not include the time given to the BUK to complete, repair, and/or update the required documents in the submission of the BUK business license change to BPR business license. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts an examination of requirement fulfillment, including:
a. assessment of preparation documents and action plans as referred to in Article 22; and b. assessment of competence and propriety for prospective Board of Directors and/or prospective Board of Commissioners members in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for key parties of financial service institutions.

Article 24
(1) The Financial Services Authority examines the completeness of the application requirement documents as referred to in Article 22.
(2) In the event that based on the examination of document completeness as referred to in paragraph (1) is incomplete, the BUK is required to complete and submit the missing documents no later than 20 (twenty) Working Days since the date of notification from the Financial Services Authority. (3) In the event that the BUK business license change application to BPR business license documents submitted are deemed complete, the Financial Services Authority notifies the BUK that the documents are complete and the approval or rejection process for the BUK business license change to BPR business license application as referred to in Article 23 paragraph (1) begins to run from the date of notification.

Article 25
(1) In conducting an examination of requirement fulfillment as referred to in Article 23 paragraph (3), the Financial Services Authority may request additional and/or repaired documents submitted through notification to the BUK. (2) Additional and/or repaired documents as referred to in paragraph (1) include repairs to the action plan based on the Financial Services Authority's assessment of the preparation of steps, stages, and/or time limits for adjusting the form and business activities that cannot be completed within the established time limit. (3) The BUK is required to submit additional and/or repaired documents as referred to in paragraph (2) to the Financial Services Authority no later than 20 (twenty) Working Days since the date of notification from the Financial Services Authority.

Article 26
In the event that the BUK meets all completeness of requirement documents as referred to in Article 24 and requirement fulfillment based on the examination results as referred to in Article 25, the Financial Services Authority revokes the BUK business license and provides a business license as a BPR.

Article 27
(1) A BPR resulting from a business license change from a BUK is required to implement the action plan submitted to the Financial Services Authority as referred to in Article 22 letter b within a maximum time limit of 1 (one) year from the date the BPR business license is issued, consisting of:
a. amendment of the Articles of Association and ownership status including the change of open company status to a closed corporation; b. cessation of BUK business activities not permitted for BPR, except for the settlement of rights and obligations; and
c. adjustment of BUK office network types and areas not permitted for BPR.
(2) A BPR resulting from a business license change from a BUK is required to submit reports on the implementation realization of the action plan as referred to in paragraph (1) to the Financial Services Authority every month no later than on the 10th (tenth) of the following month. (3) In the event that based on the Financial Services Authority's assessment of the implementation realization report of the action plan as referred to in paragraph (2), the Financial Services Authority may set different time limits based on certain considerations as referred to in Article 21 paragraph (4).

Article 28
(1) A BPR resulting from a business license change from a BUK is required to hold a General Meeting of Shareholders to amend the Articles of Association regarding the adjustment of the form and business activities of BUK to BPR as referred to in Article 27 paragraph (1) letter a no later than 2 (two) months from the date the business license from the Financial Services Authority is issued. (2) A BPR resulting from a business license change from a BUK is required to submit to the Financial Services Authority:
a. amendments to the Articles of Association in accordance with legislation; and b. approval of the amendment of the Articles of Association as referred to in letter a from the competent authority, no later than 10 (ten) Working Days since the date of the approval letter for the amendment of the Articles of Association from the competent authority. (3) The revocation of the business license as a BUK and the provision of a business license as a BPR as referred to in Article 26 takes effect from the date of approval by the competent authority or the date specified in the approval of the competent authority as referred to in paragraph (2) letter b.

Article 29
(1) A BPR resulting from a business license change from a BUK is required to announce to the public and all customers regarding the business license change no later than 10 (ten) Working Days since the date the business license as a BPR takes effect as referred to in Article 28 paragraph (3). (2) A BPR resulting from a business license change from a BUK is required to submit proof of announcement as referred to in paragraph (1) to the Financial Services Authority no later than 10 (ten) Working Days since the date of the announcement.

Article 30
(1) A BPR resulting from a business license change from a BUK is required to cease business activities as a BUK as referred to in Article 27 paragraph (1) letter b, including:
a. giro savings and related giralization activities; b. business activities in foreign currency, except for foreign currency exchange business activities;
c. issuance of debt securities or bonds;
d. ownership of securities; e. interbank money market transactions; and f. other business activities not permitted for BPR.
(2) The cessation of business activities as referred to in paragraph (1) is exempted for BPRs resulting from a business license change from a BUK that are settling the remaining BUK portfolio. (3) In settling the remaining BUK portfolio as referred to in paragraph (2), a BPR resulting from a business license change from a BUK is required to settle and/or transfer the rights and obligations of the BUK.

Article 31
A BPR resulting from a business license change from a BUK is required to adjust the types and areas of BUK office networks not permitted for BPR as referred to in Article 27 paragraph (1) letter c, by:
a. closing, relocating, and/or changing the status of office networks in accordance with the types and areas permitted for BPR; and b. ceasing business activities as referred to in Article 30 paragraph (1) at the office networks of the BPR resulting from a business license change from a BUK.

Article 32
The implementation of adjustments to business activities and office networks as referred to in Article 30 and Article 31 is elaborated further as listed in Appendix Part G which is an integral part of this Financial Services Authority Regulation.

Article 33
(1) A BPR resulting from a business license change from a BUK is required to submit a report on the realization of the implementation of the action plan as referred to in Article 27 paragraph (1) no later than 1 (one) month since the end of the time limit for adjusting all forms and business activities to BPR as referred to in Article 21 paragraph (3). (2) In the event that the time limit for adjusting the form and business activities to BPR is set differently, a BPR resulting from a business license change from a BUK is required to submit a report on the realization of the implementation of the action plan no later than 1 (one) month since the end of the time limit as referred to in Article 27 paragraph (3).

Paragraph 2
Business License Change Based on Financial Services Authority Decision

Article 34
(1) The business license change as referred to in Article 21 paragraph (1) letter b is established in a Financial Services Authority decision notified to the BUK.
(2) The business license change decision as referred to in paragraph (1) is given after the Financial Services Authority imposes administrative sanctions and establishes obligations to adjust the form and business activities in accordance with the Financial Services Authority Regulation regarding the consolidation of commercial banks and/or the Financial Services Authority Regulation regarding written orders for handling bank problems.

Article 35
BUKs designated as BPRs as referred to in Article 34 paragraph (1) are required to submit action plans for adjusting all forms and business activities to BPR to the Financial Services Authority no later than 10 (ten) Working Days since the issuance of the Financial Services Authority decision regarding the revocation of the BUK business license and the provision of a business license as a BPR.

Article 36
Provisions regarding the implementation of action plans and follow-up of business license changes from BUK to BPR business licenses as referred to in Article 27 through Article 33 apply mutatis mutandis to BUKs designated as BPRs based on Financial Services Authority decisions.

Article 37
BPRs resulting from business license changes from BUKs based on BUK initiatives and based on Financial Services Authority decisions as referred to in Article 21 paragraph (1) may include the word "Bank" before the BPR name and must be followed by the legal entity form and the phrase "Bank Perkreditan Rakyat" or abbreviated as "BPR".

Article 38
(1) BPRs that do not meet the provisions as referred to in Article 19 paragraph (1), Article 20, Article 21 paragraph (3), Article 27 paragraph (1), Article 28 paragraph (1), Article 29 paragraph (1), Article 30 paragraph (1), Article 30 paragraph (3), Article 31, Article 35, and/or Article 37 are subject to administrative sanctions in the form of written reprimands. (2) In the event that BPRs have been subject to administrative sanctions as referred to in paragraph (1), BPRs that still do not meet the provisions as referred to in Article 19 paragraph (1), Article 20, Article 29 paragraph (1), and/or Article 37 may be subject to administrative sanctions in the form of a one-predicate downgrade of the BPR's health level. (3) In the event that BPRs have been subject to administrative sanctions as referred to in paragraph (1), BPRs that still do not meet the provisions as referred to in Article 21 paragraph (3), Article 27 paragraph (1), Article 28 paragraph (1), Article 30 paragraph (1), Article 30 paragraph (3), Article 31, and/or Article 35, may be subject to administrative sanctions in the form of:
a. a one-predicate downgrade of the BPR's health level; b. prohibition on expanding business activities and/or office networks;
c. temporary suspension of part of the BPR's operational activities; and/or
d. postponement of the right to receive dividends for shareholders.
(4) BUKs that do not meet the provisions as referred to in Article 24 paragraph (2) and/or Article 25 paragraph (3) are subject to administrative sanctions in the form of written reprimands. (5) In the event that BUKs have been subject to administrative sanctions as referred to in paragraph (4), BUKs that do not meet the provisions as referred to in Article 24 paragraph (2) and/or Article 25 paragraph (3) may be subject to administrative sanctions in the form of:
a. a one-predicate downgrade of the health level; b. prohibition on expanding business activities and/or office networks; and/or
c. temporary suspension of part of operational activities.

Article 39
(1) BPRs that are late in submitting reports or proof of announcements as referred to in Article 19 paragraph (3), Article 27 paragraph (2), Article 28 paragraph (2), Article 29 paragraph (2), Article 33 paragraph (1), and/or Article 33 paragraph (2) are subject to administrative sanctions in the form of fines of Rp100,000.00 (one hundred thousand rupiah) per Working Day and a maximum of Rp5,000,000.00 (five million rupiah). (2) BPRs that have been subject to administrative sanctions in the form of fines as referred to in paragraph (1) must still submit reports or proof of announcements.

CHAPTER IV
OWNERSHIP AND CAPITAL CHANGES OF BPR
First Section
General

Article 40
Every BPR is required to have at least 1 (one) shareholder with a share ownership percentage of at least 25% (twenty-five percent) in accordance with the criteria for PSP in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for key parties of financial service institutions.

Article 41
Owners of BPRs in the form of Indonesian legal entities as referred to in Article 3 paragraph (1) letter b must meet the requirements:
a. stated as legal entities based on legislation provisions; and b. having Articles of Association regulating management, capital or financing, and the purpose and objectives of establishing the legal entity in accordance with legislation provisions regarding legal entities.

Article 42
(1) BPR ownership by legal entities must meet:
a. for limited liability companies, regional public enterprises, regional corporations, or cooperatives, at most equal to net own capital and not exceeding the amount permitted for legal entities in accordance with legislation provisions; and b. for other Indonesian legal entities, at most equal to the amount permitted in accordance with legislation provisions. (2) Ownership calculations are conducted at the beginning of the BPR's establishment and at the time paid-in capital is added by legal entities as referred to in paragraph (1). (3) In calculating BPR ownership as referred to in paragraph (2), BPRs must submit financial reports prepared by the BPR-owning legal entity at the time of adding paid-in capital with the report position at the end of the previous month. (4) In the event that legal entities as referred to in paragraph (1) own at least 25% (twenty-five percent) of BPR shares, BPRs are required to submit to the Financial Services Authority annual financial reports prepared by the legal entity in accordance with legislation provisions. (5) The obligation to submit annual financial reports as referred to in paragraph (4) is conducted by BPRs no later than the end of June after the position year of the report.

Article 43
Funding sources for BPR ownership are prohibited:
a. from loans or financing facilities in any form from banks and/or other parties, except from the Regional Government Budget; and/or b. from and for the purposes of money laundering and/or terrorism financing or the proliferation of weapons of mass destruction.

Article 44
(1) BPR owners are prohibited from withdrawing paid-in capital.
(2) In the event that owners intend to withdraw as BPR owners, owners are required to:
a. transfer their share ownership to other parties as regulated in this Financial Services Authority Regulation; or b. meet the Financial Services Authority Regulation regarding the assessment of competence and propriety for key parties of financial service institutions.

Article 45
(1) Parties becoming BPR owners must meet the requirements:
a. having good ethics and morality; b. committed to complying with legislation provisions;
c. committed to the healthy operational development of BPR;
d. having financial capabilities that can support the business development of BPR; e. not included in the failed list, suspected terrorist list, terrorist organization list, and proliferation of weapons of mass destruction financing list; f. committed to not committing and/or repeating acts and/or actions in accordance with the Financial Services Authority Regulation regarding the re-assessment of key parties of financial service institutions; g. not having non-performing loans and/or non-performing financing; h. not being controllers, Board of Directors members, or Board of Commissioners members of legal entities that have non-performing loans and/or non-performing financing; and/or
i. never declared bankrupt or never been shareholders, Board of Directors members, or Board of Commissioners members declared guilty causing a company to be declared bankrupt based on court decisions within the last 5 (five) years before nomination.
(2) In the event that the Financial Services Authority receives information that BPR shareholders do not meet the requirements as referred to in paragraph (1) letter a, letter e, letter i, and/or in Article 43, shareholders are required to transfer all share ownership within a maximum time limit of 1 (one) year since the date of the Financial Services Authority decision establishing that the shareholder does not meet the requirements as a BPR shareholder. (3) BPR shareholders established based on Financial Services Authority decisions as not meeting the requirements as referred to in paragraph (2) then:
a. their share ownership is not recognized; and b. their voting rights are not counted in the quorum of the General Meeting of Shareholders, since the date of the Financial Services Authority decision. (4) In the event that BPR shareholders do not transfer ownership within the established time limit as referred to in paragraph (2), dividend payments are postponed until the BPR shareholder transfers ownership. (5) Parties who can become BPR PSPs must meet the requirements as referred to in paragraph (1) and financial feasibility requirements in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for key parties of financial service institutions. (6) In the event that BPR owners are legal entities, the requirements as referred to in paragraph (1) apply to owners, Board of Directors members, Board of Commissioners members, and management of the legal entity.

Article 46
(1) In the event of changes in owners, Board of Directors members, Board of Commissioners members, or management of BPR-owning legal entities, BPRs are required to report changes to the Financial Services Authority. (2) Reports regarding changes as referred to in paragraph (1) are submitted by BPRs no later than 1 (one) month after the change occurs.

Second Section
Addition of Paid-In Capital Resulting in PSP Changes

Article 47
(1) BPRs are required to obtain Financial Services Authority approval to conduct additions of paid-in capital that result in PSP changes.
(2) BPRs conducting additions of paid-in capital as referred to in paragraph (1) must place paid-in capital in the form of deposits at commercial banks in Indonesia, other BPRs, or the BPR itself, except those sourced from the BPR's own dividends. (3) Additions of paid-in capital placed in the form of deposits at the BPR itself as referred to in paragraph (2) only apply to BPRs not in special supervision status. (4) Procedures for adding paid-in capital as referred to in paragraph (2) are conducted in the form of:
a. deposits at commercial banks in Indonesia or other BPRs by stating in the name "Commissioner Board of the Financial Services Authority q.q. name of BPR", and stating the name of the additional capital depositor and information that withdrawals can only be made after approval from the Financial Services Authority; and/or b. deposits at the BPR itself by stating in the name "Commissioner Board of the Financial Services Authority q.q. name of prospective PSP and/or depositor PSP" and stating

statement that the disbursement can only be carried out after obtaining approval from the Otoritas Jasa Keuangan.

Article 48
(1) The BPR submits a request for approval of paid-up capital additions resulting in a change of PSP as referred to in Article 47 paragraph (1), accompanied by proof of capital deposits and requirement documents listed in Appendix Part I, which is an integral part of this Otoritas Jasa Keuangan Regulation. (2) The Otoritas Jasa Keuangan processes the request and provides approval or rejection of the paid-up capital addition request as referred to in paragraph (1) within a maximum of 20 (twenty) Working Days since the request along with the required documents are received completely. (3) The time limit as referred to in paragraph (2) does not include the time given to the BPR to complete, correct, and/or update the documents required in the submission of the paid-up capital addition request resulting in a change of PSP. (4) In providing approval or rejection as referred to in paragraph (2), the Otoritas Jasa Keuangan conducts research on the fulfillment of requirements, including:
a. research on the source of capital deposits; b. assessment of competence and propriety for the prospective PSP, in accordance with Otoritas Jasa Keuangan Regulations regarding the assessment of competence and propriety for principal parties of financial service institutions; and
c. research on financial performance and fulfillment of regulations in the BPR and/or other financial service institutions owned by the prospective PSP.

Article 49
(1) The Otoritas Jasa Keuangan conducts research on the completeness of requirement documents as referred to in Article 48 paragraph (1).
(2) In the event that the research on the completeness of documents as referred to in paragraph (1) is incomplete, the Otoritas Jasa Keuangan notifies the BPR to complete the missing documents and resubmit them to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days since the date of notification from the Otoritas Jasa Keuangan. (3) In the event that the BPR does not complete, correct, and/or update the missing documents within the time limit as referred to in paragraph (2), the BPR is deemed to have cancelled the request for paid-up capital additions resulting in a change of PSP. (4) In the event that the submitted request documents for paid-up capital additions are deemed complete, the Otoritas Jasa Keuangan notifies the BPR that the paid-up capital addition documents are complete and the process of providing approval or rejection for the paid-up capital additions resulting in a change of PSP begins to run from the date of notification from the Otoritas Jasa Keuangan.

Article 50
(1) In conducting research on the fulfillment of requirements as referred to in Article 48 paragraph (4), the Otoritas Jasa Keuangan may request additional and/or corrected documents from the BPR. (2) Additional and/or corrected documents as referred to in paragraph (1) are submitted to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days since the date of notification from the Otoritas Jasa Keuangan. (3) In the event that the BPR does not submit additional or corrected documents within the time limit as referred to in paragraph (2), the BPR is deemed to have cancelled the request for paid-up capital additions resulting in a change of PSP. (4) Paid-up capital additions by the BPR are recognized in the calculation of core capital in accordance with Otoritas Jasa Keuangan Regulations regarding minimum capital provision requirements and minimum core capital fulfillment for rural credit banks after Otoritas Jasa Keuangan approval of the request for paid-up capital additions resulting in a change of PSP.

Article 51
(1) The BPR must hold a General Meeting of Shareholders (GMS) to approve paid-up capital additions resulting in a change of PSP, within a maximum of 60 (sixty) Working Days since the date of Otoritas Jasa Keuangan approval as referred to in Article 48 paragraph (2). (2) In the event that the GMS cannot be held within the time limit as referred to in paragraph (1), the Otoritas Jasa Keuangan approval is declared void and invalid. (3) In the event that the BPR has already held a GMS before obtaining Otoritas Jasa Keuangan approval, the BPR may choose not to hold a GMS again to approve paid-up capital additions resulting in a change of PSP. (4) The BPR is required to report the implementation of paid-up capital additions resulting in a change of PSP to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days after the paid-up capital additions are approved in the GMS as referred to in paragraph (1). (5) In the event that the GMS has been held before the paid-up capital additions obtain Otoritas Jasa Keuangan approval as referred to in paragraph (3), the BPR is required to report the implementation of paid-up capital additions resulting in a change of PSP to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days since the date of Otoritas Jasa Keuangan approval for the paid-up capital additions submitted by the BPR. (6) Reports on the implementation of paid-up capital additions as referred to in paragraphs (4) and (5) are accompanied by:
a. GMS minutes; and b. ownership data.
(7) The BPR is required to report changes in paid-up capital as referred to in paragraphs (4) and (5) to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days since the date of approval of the articles of association changes from the competent authority, accompanied by:
a. copies of the articles of association changes in accordance with applicable laws and regulations; and b. approval letters or notification acceptance letters for articles of association changes as referred to in letter a from the competent authority. (8) Reporting as referred to in paragraph (7) is accompanied by a request for approval for the disbursement of deposits to the Otoritas Jasa Keuangan to be recorded as paid-up capital.

Part Three
Changes in Share Ownership Resulting in Changes in PSP

Article 52
(1) The BPR is required to obtain Otoritas Jasa Keuangan approval to carry out changes in share ownership that result in changes in PSP.
(2) In the event that changes in share ownership as referred to in paragraph (1) or paid-up capital additions as referred to in Article 47 paragraph (1) result in an acquisition, the procedures for changes in share ownership are carried out in accordance with Otoritas Jasa Keuangan Regulations regarding mergers, consolidations, and acquisitions of rural credit banks and sharia rural credit banks, as well as Otoritas Jasa Keuangan Regulations regarding the assessment of competence and propriety for principal parties of financial service institutions. (3) In the event that changes in share ownership or paid-up capital additions result in an acquisition as referred to in paragraph (2), and the party carrying out the acquisition is an individual, the acquired BPR together with the party carrying out the acquisition of the BPR prepares an acquisition plan consisting of at least the latest financial capability analysis of the prospective PSP along with projections for the next 3 (three) years prepared by an independent consultant, in accordance with Otoritas Jasa Keuangan Regulations regarding mergers, consolidations, and acquisitions of rural credit banks and sharia rural credit banks. (4) The financial capability analysis of the prospective PSP as referred to in paragraph (3) may include asset growth plans or the financing readiness of the individual prospective PSP over the next 3 (three) years prepared by parties with the ability to prepare financial analyses. (5) The financial capability analysis of the prospective PSP as referred to in paragraph (4) must demonstrate the financial capability of the prospective PSP to provide capital support to the BPR to maintain the BPR's business continuity.

Article 53
(1) The BPR submits a request for approval of changes in share ownership resulting in changes in PSP as referred to in Article 52 paragraph (1), accompanied by requirement documents as listed in Appendix Part J, which is an integral part of this Otoritas Jasa Keuangan Regulation. (2) The Otoritas Jasa Keuangan processes the request and provides approval or rejection of the request for changes in share ownership as referred to in paragraph (1) within a maximum of 20 (twenty) Working Days since the request along with the required documents are received completely. (3) The time limit as referred to in paragraph (2) does not include the time given to the BPR to complete, correct, and/or update the documents required in the submission of the request for approval of changes in share ownership resulting in changes in PSP. (4) In providing approval or rejection as referred to in paragraph (2), the Otoritas Jasa Keuangan conducts research on the fulfillment of requirements, including:
a. research on the source of funds for share transfers; b. assessment of competence and propriety for the prospective PSP, in accordance with Otoritas Jasa Keuangan Regulations regarding the assessment of competence and propriety for principal parties of financial service institutions; and
c. research on financial performance and fulfillment of regulations in the BPR and/or other financial service institutions owned by the prospective PSP.

Article 54
(1) The Otoritas Jasa Keuangan conducts research on the completeness of requirement documents for requests as referred to in Article 53 paragraph (1).
(2) In the event that the research on the completeness of documents as referred to in paragraph (1) is incomplete, the Otoritas Jasa Keuangan notifies the BPR to complete the missing documents and resubmit them to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days since the date of notification from the Otoritas Jasa Keuangan. (3) In the event that the BPR does not complete, correct, and/or update the missing documents within the time limit as referred to in paragraph (2), the BPR is deemed to have cancelled the request for approval of changes in share ownership resulting in changes in PSP. (4) In the event that the submitted request documents for approval of changes in share ownership are deemed complete, the Otoritas Jasa Keuangan notifies the BPR that the documents are complete and the process of providing approval or rejection for the request for approval of changes in share ownership resulting in changes in PSP begins to run from the date of notification from the Otoritas Jasa Keuangan.

Article 55
(1) In conducting research on the fulfillment of requirements as referred to in Article 53 paragraph (4), the Otoritas Jasa Keuangan may request additional and/or corrected documents from the BPR. (2) Additional and/or corrected documents as referred to in paragraph (1) are submitted to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days since the date of notification from the Otoritas Jasa Keuangan. (3) In the event that the BPR does not submit additional and/or corrected documents within the time limit as referred to in paragraph (2), the BPR is deemed to have cancelled the request for approval of changes in share ownership resulting in changes in PSP.

Article 56
(1) The BPR must hold a General Meeting of Shareholders (GMS) to approve changes in share ownership resulting in changes in PSP as referred to in Article 53 paragraph (2) within a maximum of 60 (sixty) Working Days since the date of Otoritas Jasa Keuangan approval. (2) In the event that the GMS cannot be held within the time limit as referred to in paragraph (1), the Otoritas Jasa Keuangan approval is declared void and invalid. (3) In the event that the BPR has already held a GMS before obtaining Otoritas Jasa Keuangan approval, the BPR may choose not to hold a GMS again to approve changes in share ownership resulting in changes in PSP. (4) The BPR is required to report the implementation of changes in share ownership resulting in changes in PSP to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days after changes in share ownership are approved in the GMS as referred to in paragraph (1). (5) In the event that the GMS has been held before changes in share ownership obtain Otoritas Jasa Keuangan approval as referred to in paragraph (3), the BPR is required to report the implementation of changes in share ownership resulting in changes in PSP to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days since the date of Otoritas Jasa Keuangan approval for changes in share ownership submitted by the BPR. (6) Reports on the implementation of changes in share ownership as referred to in paragraphs (4) and (5) are accompanied by:
a. GMS minutes; and b. ownership data.
(7) The BPR is required to report changes in share ownership as referred to in paragraphs (4) and (5) to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days since the date of notification acceptance letters for data changes and/or approval of articles of association changes from the competent authority, accompanied by:
a. copies of share ownership changes and/or articles of association changes; and b. notification acceptance letters for data changes and/or approval of articles of association changes as referred to in letter a from the competent authority.

Part Four
Paid-up Capital Additions and Changes in Share Ownership Not Resulting in Changes in PSP

Article 57
(1) The BPR is required to report paid-up capital additions and/or changes in share ownership that do not result in changes in PSP to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days since the date of notification acceptance letters for data changes and/or approval of articles of association changes from the competent authority. (2) Reports as referred to in paragraph (1) are accompanied by documents as listed in Appendix Part K, which is an integral part of this Otoritas Jasa Keuangan Regulation, including:
a. proof of capital deposits accompanied by supporting documents, if accompanied by paid-up capital additions; b. proof of share transfers accompanied by supporting documents, if not accompanied by paid-up capital additions;
c. ownership data accompanied by supporting documents;
d. copies of the articles of association changes; and e. notification acceptance letters for data changes and/or approval of articles of association changes from the competent authority, accompanied by copies of share ownership changes and/or articles of association changes.

Part Five
Changes in Basic Capital

Article 58
(1) The BPR is required to report changes in basic capital to the Otoritas Jasa Keuangan within a maximum of 10 (ten) Working Days since the BPR receives the approval letter for articles of association changes from the competent authority, accompanied by:
a. GMS minutes made in a notarial deed; and b. approval of articles of association changes from the competent authority.
(2) The BPR is required to administer:
a. a list of shareholders and its changes, for BPRs with the legal status of limited liability companies, state-owned enterprises, or regional-owned enterprises; or b. a member list book and its changes, for BPRs with the legal status of cooperatives.

Article 59
(1) BPRs that do not fulfill the provisions as referred to in Article 40, Article 42 paragraph (1), Article 43, Article 44, Article 47 paragraph (1), Article 52 paragraph (1), and/or Article 58 paragraph (2) are subject to administrative sanctions in the form of written warnings. (2) In the event that BPRs have been subject to administrative sanctions as referred to in paragraph (1), BPRs that still do not fulfill the provisions as referred to in Article 42 paragraph (1), Article 47 paragraph (1), Article 52 paragraph (1), and/or Article 58 paragraph (2) may be subject to administrative sanctions in the form of a one-predicate downgrade of the BPR's health level. (3) In the event that BPRs have been subject to administrative sanctions as referred to in paragraph (1), BPRs that still do not fulfill the provisions as referred to in Article 40, Article 43, and/or Article 44 may be subject to administrative sanctions in the form of:
a. a one-predicate downgrade of the BPR's health level; b. prohibition on expanding business activities and/or office networks;
c. temporary suspension of some of the BPR's operational activities; and/or
d. postponement of the right to receive dividends for shareholders.
(4) BPRs that are late in submitting reports as referred to in Article 42 paragraph (4), Article 46 paragraph (1), Article 51 paragraph (4), Article 51 paragraph (5), Article 51 paragraph (7), Article 56 paragraph (4), Article 56 paragraph (5), Article 56 paragraph (7), Article 57 paragraph (1), and/or Article 58 paragraph (1) are subject to administrative sanctions in the form of fines of IDR 100,000.00 (one hundred thousand rupiah) per Working Day and a maximum of IDR 5,000,000.00 (five million rupiah). (5) BPRs that have been subject to administrative sanctions in the form of fines as referred to in paragraph (4) must still submit reports.

Article 60
PSP, members of the Board of Directors, members of the Board of Commissioners, and/or Executive Officers of BPRs that do not fulfill the provisions as referred to in Article 44 paragraph (1), and/or Article 44 paragraph (2) may be subject to administrative sanctions in the form of prohibitions as principal parties in accordance with Otoritas Jasa Keuangan Regulations regarding re-assessment of principal parties of financial service institutions.

CHAPTER V
MEMBERS OF THE BOARD OF DIRECTORS, MEMBERS OF THE BOARD OF COMMISSIONERS, AND EXECUTIVE OFFICERS

Part One
General Provisions

Article 61
(1) Members of the Board of Directors and members of the Board of Commissioners must fulfill the following requirements:
a. integrity; b. financial reputation; and
c. competence.
(2) The fulfillment of requirements for members of the Board of Directors and members of the Board of Commissioners as referred to in paragraph (1) is carried out in accordance with Otoritas Jasa Keuangan Regulations regarding the assessment of competence and propriety for principal parties of financial service institutions.

Part Two
Members of the Board of Directors

Article 62
(1) The BPR is required to have at least 2 (two) members of the Board of Directors, one of whom serves as the managing director.
(2) The Otoritas Jasa Keuangan may determine the number of members of the Board of Directors to be more than 2 (two) as referred to in paragraph (1) in accordance with Otoritas Jasa Keuangan Regulations regarding the application of governance for rural credit banks. (3) All members of the Board of Directors must reside in the same regency/city, or in different regencies/cities within the same province, or in regencies/cities in other provinces that border directly with the regency/city where the BPR's head office is located. (4) Members of the Board of Directors must have a minimum formal education level equivalent to a diploma three (D3). (5) Members of the Board of Directors must have:
a. adequate and relevant knowledge in the banking field related to their position; b. experience and expertise in the banking and/or financial fields; and
c. the ability to conduct strategic management in the development of healthy BPRs.
(6) The experience and expertise as referred to in paragraph (5) letter b must be for at least 2 (two) years.

Article 63
Members of the Board of Directors are required to have valid competency certificates issued by professional certification bodies.

Article 64
(1) A majority of members of the Board of Directors are prohibited from having family or in-law relationships up to the second degree with:
a. other members of the Board of Directors; and/or b. members of the Board of Commissioners.
(2) Members of the Board of Directors, individually or collectively, are prohibited from holding 25% (twenty-five percent) or more of the paid-up capital in banks and/or being majority shareholders in other financial service institutions. (3) Members of the Board of Directors are prohibited from holding concurrent positions in banks, other financial service institutions, and/or other institutions, except as members of BPR industry associations and/or educational institutions aimed at improving the competence of BPR human resources, provided that it does not interfere with the execution of duties as members of the Board of Directors of the BPR. (4) Members of the Board of Directors are prohibited from granting general powers that result in the transfer of duties and authorities without limits.

Part Three
Members of the Board of Commissioners

Article 65
(1) The BPR is required to have at least 2 (two) members of the Board of Commissioners and at most equal to the number of members of the Board of Directors, one of whom serves as the lead commissioner. (2) The Otoritas Jasa Keuangan may determine the number of members of the Board of Commissioners to be more than 2 (two) as referred to in paragraph (1) in accordance with Otoritas Jasa Keuangan Regulations regarding the application of governance for rural credit banks. (3) All members of the Board of Commissioners must be domiciled in Indonesia, and at least 1 (one) member of the Board of Commissioners must reside in the same province or in a regency/city in another province that borders directly with the province where the BPR's head office is located. (4) Members of the Board of Commissioners as referred to in paragraph (1) must have:
a. knowledge in the banking field; and/or b. experience in the banking and/or financial fields.
(5) Members of the Board of Commissioners as referred to in paragraph (1) are required to have valid competency certificates issued by professional certification bodies.
(6) Candidate members of the Board of Commissioners must have competency certificates as referred to in paragraph (5) at the time they are proposed as candidate members of the Board of Commissioners. (7) Competency certificates as referred to in paragraph (6) that can be used as certification documents for candidate members of the Board of Commissioners include valid competency certificates for members of the Board of Directors. (8) Members of the Board of Commissioners are prohibited from holding concurrent positions as commissioners in more than 2 (two) other BPRs or sharia rural credit banks (BPRS). (9) Members of the Board of Commissioners are prohibited from holding concurrent positions:
a. as members of the Board of Directors or Executive Officers in other financial service institutions supervised by Otoritas Jasa Keuangan; or b. in organizations, companies, or other business entities where concurrent positions create conflicts of interest that affect the effectiveness of supervision based on Otoritas Jasa Keuangan assessments. (10) The Board of Commissioners is required to hold meetings at least 1 (one) time every 3 (three) months. (11) In the event that Otoritas Jasa Keuangan requires explanations regarding the results of supervision of the BPR, the Board of Commissioners is required to present the results of supervision of the BPR.

Article 66
(1) A majority of members of the Board of Commissioners are prohibited from having family or in-law relationships up to the second degree with:
a. other members of the Board of Commissioners; and/or b. members of the Board of Directors.
(2) Members of the Board of Commissioners are prohibited from granting general powers that result in the transfer of duties and authorities without limits.

Part Four
Follow-up on the Positions of Members of the Board of Directors and/or Members of the Board of Commissioners

Article 67
(1) Candidate members of the Board of Directors and candidate members of the Board of Commissioners are required to obtain approval from Otoritas Jasa Keuangan before carrying out actions, duties, and functions in their positions. (2) In providing approval for requests as referred to in paragraph (1), the Otoritas Jasa Keuangan conducts competence and propriety assessments in accordance with Otoritas Jasa Keuangan Regulations regarding the assessment of competence and propriety for principal parties of financial service institutions.

Article 68
(1) The BPR must hold a General Meeting of Shareholders (GMS) to appoint members of the Board of Directors and/or members of the Board of Commissioners within a maximum of 60 (sixty) Working Days since the date

approval of the Financial Services Authority regarding the determination of the results of competence and propriety assessments.
(2) In the event that the General Meeting of Shareholders (GMS) for appointment cannot be held within the time limit as referred to in paragraph (1), the approval of the Financial Services Authority regarding the determination of the results of the competence and propriety assessment shall be declared void and invalid. (3) Members of the Board of Directors and/or members of the Board of Commissioners shall take office from the date determined in the GMS. (4) The appointment of members of the Board of Directors and/or members of the Board of Commissioners must be reported online through the Financial Services Authority's reporting system, in the reporting period closest to the date of appointment of the members of the Board of Directors and/or members of the Board of Commissioners determined in the GMS, accompanied by the GMS minutes and proof of receipt of notification from the competent authority.

Article 69
(1) In the event that a Rural Bank (BPR) has held a GMS before obtaining approval from the Financial Services Authority, the BPR may choose not to hold a GMS again to approve the appointment of members of the Board of Directors and/or members of the Board of Commissioners. (2) The Financial Services Authority issues a determination of the results of the competence and propriety assessment, which serves as the date on which the members of the Board of Directors and/or members of the Board of Commissioners first take office. (3) The BPR is required to report the appointment of members of the Board of Directors and/or members of the Board of Commissioners as referred to in paragraph (1) online through the Financial Services Authority's reporting system in the reporting period closest to the date of the determination of the results of the competence and propriety assessment, accompanied by the GMS minutes and proof of receipt of notification from the competent authority.

(4) In the event that the Financial Services Authority's online reporting system is not yet available, the BPR is required to submit the report as referred to in paragraph (3) offline. (5) The obligation to submit the report as referred to in paragraph (4) must be carried out no later than 10 (ten) Working Days calculated from the date of the determination of the results of the competence and propriety assessment, accompanied by the GMS minutes and proof of receipt of notification from the competent authority.

Article 70
(1) The BPR is required to submit a report on the resignation of members of the Board of Directors and/or members of the Board of Commissioners online through the Financial Services Authority's reporting system in the reporting period closest to the date of resignation determined in the GMS or the expiration of the term regulated in the BPR's Articles of Association in the event that the GMS cannot be held, accompanied by the reasons for resignation and/or GMS minutes. (2) The BPR is required to submit a report on the dismissal of members of the Board of Directors and/or members of the Board of Commissioners online through the Financial Services Authority's reporting system in the reporting period closest to the date of dismissal determined in the GMS, accompanied by the reasons for dismissal and GMS minutes. (3) In the event that a member of the Board of Directors and/or a member of the Board of Commissioners dies, the BPR is required to report online through the Financial Services Authority's reporting system, in the reporting period closest to the date of death of the member of the Board of Directors and/or member of the Board of Commissioners, accompanied by a death certificate from the competent authority. (4) In the event that a member of the Board of Directors and/or a member of the Board of Commissioners meets the prohibition requirements for members of the Board of Directors and/or members of the Board of Commissioners,

the prohibition applies from the date of notification or decision of the Financial Services Authority.

Article 71
(1) In the event that members of the Board of Directors and/or members of the Board of Commissioners are dismissed by the GMS, resulting in the minimum number of members of the Board of Directors as referred to in Article 62 paragraph (1) and paragraph (2) and/or members of the Board of Commissioners as referred to in Article 65 paragraph (1) and paragraph (2) not being met, the BPR is required to replace the members of the Board of Directors and/or members of the Board of Commissioners no later than 120 (one hundred twenty) Working Days from the date the members of the Board of Directors and/or members of the Board of Commissioners are dismissed based on the GMS decision. (2) In the event that members of the Board of Directors and/or members of the Board of Commissioners resign, resulting in the minimum number of members of the Board of Directors as referred to in Article 62 paragraph (1) and paragraph (2) and/or members of the Board of Commissioners as referred to in Article 65 paragraph (1) and paragraph (2) not being met, the BPR is required to replace the members of the Board of Directors and/or members of the Board of Commissioners no later than 120 (one hundred twenty) Working Days from the resignation of the members of the Board of Directors and/or members of the Board of Commissioners as referred to in Article 70 paragraph (1). (3) In the event that members of the Board of Directors and/or members of the Board of Commissioners die, resulting in the minimum number of members of the Board of Directors as referred to in Article 62 paragraph (1) and paragraph (2) and/or members of the Board of Commissioners as referred to in Article 65 paragraph (1) and paragraph (2) not being met, the BPR is required to replace the members of the Board of Directors and/or members of the Board of Commissioners no later than 120 (one hundred twenty) Working Days from the declaration of death according to the death certificate from the competent authority.

(4) In the event that members of the Board of Directors and/or members of the Board of Commissioners are prohibited from becoming members of the Board of Directors and/or members of the Board of Commissioners by the Financial Services Authority, resulting in the minimum number of members of the Board of Directors as referred to in Article 62 paragraph (1) and paragraph (2) and/or members of the Board of Commissioners as referred to in Article 65 paragraph (1) and paragraph (2) not being met, the BPR is required to replace the members of the Board of Directors and/or members of the Board of Commissioners no later than 120 (one hundred twenty) Working Days from the date of notification or decision of the Financial Services Authority. (5) The period of 120 (one hundred twenty) Working Days as referred to in paragraph (1), paragraph (2), paragraph (3), and paragraph (4) includes the scope of the process of submitting candidates for members of the Board of Directors and/or candidates for members of the Board of Commissioners by the BPR, the competence and propriety assessment, up to the appointment of members of the Board of Directors and/or members of the Board of Commissioners by the GMS. (6) The BPR is required to hold a GMS to replace members of the Board of Directors and/or members of the Board of Commissioners due to the expiration of their term of office, which results in the minimum number of members of the Board of Directors not being met, no later than on the date the term of office of the members of the Board of Directors and/or members of the Board of Commissioners ends.

Article 72
(1) In the event of a change in position of members of the Board of Directors and/or members of the Board of Commissioners, the BPR is required to submit a report on the change of position online through the Financial Services Authority's reporting system in the reporting period closest to the date of the change of position of the members of the Board of Directors and/or members of the Board of Commissioners, accompanied by the reasons for the change of position and documents explaining the decision on the change of position as regulated in the BPR's Articles of Association.

(2) In the event that the Financial Services Authority's online reporting system is not yet available, the BPR is required to submit the report as referred to in paragraph (1) offline. (3) The obligation to submit the report as referred to in paragraph (2) must be carried out no later than 10 (ten) Working Days calculated from the date of the change of position of the members of the Board of Directors and/or members of the Board of Commissioners.

Article 73
(1) The re-appointment of members of the Board of Directors and/or members of the Board of Commissioners by the GMS must be carried out no later than on the date the term of office of the members of the Board of Directors and/or members of the Board of Commissioners ends. (2) The BPR is required to submit a report on the re-appointment of members of the Board of Directors and/or members of the Board of Commissioners as referred to in paragraph (1) online through the Financial Services Authority's reporting system in the reporting period closest to the date determined in the GMS, accompanied by the GMS minutes. (3) In addition to submitting reports to the Financial Services Authority as referred to in paragraph (2), the BPR notifies the re-appointment of members of the Board of Directors and/or members of the Board of Commissioners to the competent authority in accordance with applicable legislation. (4) The term of office of members of the Board of Directors and/or members of the Board of Commissioners ends if:
a. The BPR does not hold a GMS for re-appointment within the time limit as referred to in paragraph (1); or b. The GMS is held but does not approve the re-appointment of the members of the Board of Directors and/or members of the Board of Commissioners. (5) Members of the Board of Directors and/or members of the Board of Commissioners whose term of office has ended as referred to in paragraph (4) and who are nominated again as members of the Board of Directors and/or members of the Board of Commissioners must obtain approval from the Financial Services Authority through a competence and propriety assessment in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for key parties of financial service institutions.

Fifth Section
Executive Officers

Article 74
(1) The BPR is required to report every appointment, change, and/or dismissal of Executive Officers online through the Financial Services Authority's reporting system in the reporting period closest to the date of appointment, change, and/or dismissal of the Executive Officers, accompanied by supporting documents. (2) The supporting documents as referred to in paragraph (1) consist of:
a. photocopy of the appointment letter, employment agreement, or dismissal letter; b. photocopy of a valid Identity Card (KTP);
c. curriculum vitae; and
d. recent 4x6 cm passport-sized photo.
(3) In the event that the Financial Services Authority's online reporting system is not yet available, the BPR is required to submit the report as referred to in paragraph (1) offline. (4) The obligation to submit the report as referred to in paragraph (3) must be carried out no later than 10 (ten) Working Days calculated from the date of appointment, change, and/or dismissal of the Executive Officers.

Article 75
(1) The Financial Services Authority conducts research on reports regarding Executive Officers as referred to in Article 74.

(2) In the event that based on the results of the research as referred to in paragraph (1), the Executive Officer is listed in the failed list, the BPR is required to dismiss the Executive Officer from the date of notification from the Financial Services Authority. (3) In the event that based on the results of the research as referred to in paragraph (1), the Executive Officer has non-performing loans and/or non-performing financing, the Executive Officer concerned must settle the non-performing loans and/or non-performing financing in accordance with the Financial Services Authority Regulation regarding re-assessment for key parties of financial service institutions.

Article 76
(1) BPRs that do not comply with the provisions as referred to in Article 62 paragraph (1), Article 62 paragraph (3), Article 63, Article 64, Article 65 paragraph (1), Article 65 paragraph (3), Article 65 paragraph (5), Article 65 paragraph (8), Article 65 paragraph (9), Article 65 paragraph (10), Article 65 paragraph (11), Article 66, Article 67 paragraph (1), Article 71 paragraph (1), Article 71 paragraph (2), Article 71 paragraph (3), Article 71 paragraph (4), Article 71 paragraph (6), and/or Article 75 paragraph (2) are subject to administrative sanctions in the form of a written reprimand. (2) In the event that the BPR has been subject to administrative sanctions as referred to in paragraph (1), and the BPR still does not comply with the provisions as referred to in Article 62 paragraph (3), Article 63, Article 64 paragraph (1), Article 64 paragraph (2), Article 64 paragraph (3), Article 65 paragraph (3), Article 65 paragraph (5), Article 65 paragraph (8), Article 65 paragraph (9), Article 65 paragraph (10), Article 65 paragraph (11), and/or Article 66 paragraph (1), it may be subject to administrative sanctions in the form of a one-grade downgrade of the BPR's health level. (3) In the event that the BPR has been subject to administrative sanctions as referred to in paragraph (1), and the BPR still does not comply with the provisions as referred to in Article 62 paragraph (1), Article 65 paragraph (1), Article 65 paragraph (5), Article 67 paragraph (1), Article 71 paragraph (1), Article 71 paragraph (2), Article 71 paragraph (3), Article 71 paragraph (4), Article 71 paragraph (6), and/or Article 75 paragraph (2), it may be subject to administrative sanctions in the form of:
a. a one-grade downgrade of the BPR's health level; b. prohibition on expanding business activities and/or office network;
c. temporary suspension of part of the BPR's operational activities; and/or
d. postponement of the right to receive dividends for shareholders.
(4) BPRs that do not comply with the provisions as referred to in Article 68 paragraph (4), Article 69 paragraph (3), Article 70 paragraph (1), Article 70 paragraph (2), Article 70 paragraph (3), Article 72 paragraph (1), Article 73 paragraph (2), and/or Article 74 paragraph (1) are subject to administrative sanctions in accordance with the Financial Services Authority Regulation regarding reporting of rural banks and sharia rural financing institutions through the Financial Services Authority's reporting system. (5) BPRs that are late in submitting reports as referred to in Article 72 paragraph (2) and/or Article 74 paragraph (3) are subject to administrative sanctions in the form of a fine of IDR 100,000.00 (one hundred thousand rupiah) per Working Day and a maximum of IDR 5,000,000.00 (five million rupiah).

Article 77
In the event that members or candidate members of the Board of Directors, members or candidate members of the Board of Commissioners, and/or Executive Officers of the BPR do not comply with the provisions as referred to in Article 64 paragraph (4), Article 66 paragraph (2), and/or Article 67 paragraph (1), they may be subject to administrative sanctions in the form of a prohibition as a key party in accordance with the Financial Services Authority Regulation regarding re-assessment for key parties of financial service institutions.

CHAPTER VI
RURAL BANK OFFICE NETWORK

First Section
General Provisions

Article 78
(1) A BPR may open an Office Network in the same province as the province of the BPR's head office, provided that it meets the minimum core capital requirements for BPRs in accordance with the Financial Services Authority Regulation regarding the obligation to provide minimum capital and fulfillment of minimum core capital for rural banks. (2) A BPR may open an Office Network in the same province as the province of the BPR's head office and/or in a regency or city in another province that borders directly with the province where the BPR's head office is located, provided that it has:
a. minimum core capital of at least IDR 50,000,000,000.00 (fifty billion rupiah); or b. specific considerations supported by strong analysis.
(3) BPRs as referred to in paragraph (1) and paragraph (2) may open Branch Offices in a number appropriate to the BPR's capital capacity and business needs.

Article 79
(1) The Special Capital Region of Jakarta Province, Bogor Regency or City, Depok City, Tangerang Regency or City, South Tangerang City, Bekasi Regency or City, and Karawang Regency are declared as one province for the purpose of licensing the opening of BPR Office Networks. (2) The provisions as referred to in paragraph (1) also apply to the opening of BPR Office Networks as a result of merger or consolidation.

Article 80
In the event of regional expansion that causes the BPR's Office Network to be located in a province different from the location of the BPR's head office, the BPR's Office Network may continue to operate in the original area.

Second Section
Opening of Office Networks

Article 81
(1) The BPR is required to obtain approval from the Financial Services Authority to open a Branch Office.
(2) The BPR submitting a request for approval to open a Branch Office as referred to in paragraph (1) must meet the following requirements:
a. the plan to open a Branch Office has been included in the BPR's business plan; b. having financial conditions and health levels capable of supporting the development of the BPR's business activities and absorbing possible business losses;
c. no violations of regulations related to the BPR;
d. having adequate information technology; e. meeting the completeness of organizational structure, human resource composition, job descriptions, and standard operating procedures; and f. having infrastructure and supporting facilities for operational activities.

Article 82
A request to obtain approval to open a Branch Office as referred to in Article 81 paragraph (2) is submitted to the Financial Services Authority, accompanied by the requirement documents as listed in Appendix Part L, which is an integral part of this Financial Services Authority Regulation, attached with:
a. documents analyzing the potential and feasibility of opening a Branch Office; and b. proof of operational readiness for opening a Branch Office.

Article 83
(1) The Financial Services Authority processes the request and provides approval or rejection of the request for approval to open a Branch Office no later than 30 (thirty) Working Days from the date the request along with the required documents is received in complete form. (2) The time limit as referred to in paragraph (1) does not include the time given to the BPR to complete, correct, and/or update the documents required in the submission of the request for approval to open a Branch Office. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts research on:
a. fulfillment of requirements, including:

analysis of the potential and feasibility of opening a Branch Office; and
analysis of proof of operational readiness for opening a Branch Office,
as referred to in Article 82; and b. fulfillment of requirements as referred to in Article 81 paragraph (2).

Article 84
(1) The Financial Services Authority conducts research on the completeness of the requirement documents for the request as referred to in Article 82.
(2) In the event that based on the research on the completeness of documents as referred to in paragraph (1) is not yet complete, the Financial Services Authority notifies the BPR to complete the missing documents and resubmit them to the Financial Services Authority no later than 10 (ten) Working Days from the date of notification from the Financial Services Authority. (3) In the event that the BPR does not complete, correct, and/or update the missing documents within the time limit as referred to in paragraph (2), the BPR is deemed to have cancelled the request for approval to open a Branch Office. (4) In the event that the documents for the request for approval to open a Branch Office submitted are assessed to be complete, the Financial Services Authority notifies the BPR that the documents are complete and the process of approval or rejection of the approval to open a Branch Office begins running from the date of notification.

Article 85
(1) In conducting research on the fulfillment of requirements as referred to in Article 83 paragraph (3) letter a, the Financial Services Authority may request additional and/or corrected documents submitted through notification to the BPR. (2) Additional and/or corrected documents as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 20 (twenty) Working Days from the date of notification from the Financial Services Authority. (3) In the event that the BPR does not submit additional and/or corrected documents within the time limit as referred to in paragraph (2), the request for approval to open a Branch Office is rejected. (4) In the event that based on the results of research on the fulfillment of requirements as referred to in Article 83 paragraph (3) letter b there are:
a. key financial ratios or indicators that have the potential to lower financial performance; and/or b. violations of regulations related to the BPR, the request for approval to open a Branch Office is rejected.

Article 86
(1) The BPR that obtains approval to open a Branch Office as referred to in Article 83 paragraph (1) is required to open the Branch Office no later than 20 (twenty) Working Days from the date of approval from the Financial Services Authority. (2) The BPR is required to submit a report on the implementation of the opening of the Branch Office online through the Financial Services Authority's reporting system in the reporting period closest to the date of the implementation of the opening of the Branch Office. (3) In the event that the BPR does not implement the opening of the Branch Office within the time limit as referred to in paragraph (1), the approval to open the Branch Office that has been granted is declared void and invalid.

Article 87
(1) The BPR may open a Cash Office in a regency or city that:
a. is the same as the regency or city of the head office of the Cash Office; and/or b. borders directly with the regency or city of the head office of the nearest Cash Office.
(2) The BPR may open a Cash Office at locations other than those referred to in paragraph (1) based on specific considerations, provided that it is located within the boundary of the Office Network opening area as referred to in Article 78 paragraph (1) and paragraph (2).

Article 88
(1) BPR Cash Offices may conduct activities including:
a. serving depositing customers such as accepting deposit savings, withdrawing savings, cashing deposits including accepting applications for opening new savings accounts; b. assisting credit service activities, such as accepting credit applications, disbursing credits that have been approved by the head office, and accepting credit installment payments;
c. accepting fund deposits for bill payment service;
d. storing cash funds provided that they have adequate storage and security infrastructure; and/or e. other activities to support the function of the Cash Office, through a reporting mechanism to the Financial Services Authority. (2) Cash Offices are prohibited from conducting cash service activities other than those referred to in paragraph (1), including conducting analysis and making decisions in the process of providing funds or granting credit to customers.

Article 89
(1) The BPR must include the plan to open a Cash Office in the BPR's business plan.
(2) The BPR is required to submit a report on the implementation of the opening of the Cash Office as referred to in paragraph (1) online through the Financial Services Authority's reporting system in the reporting period closest to the date of the implementation of the opening of the Cash Office.

Article 90
(1) Mobile Banking and Payment Points may be conducted in a regency or city that:
a. is the same as the head office of the Mobile Banking and Payment Point; and/or b. borders directly with the regency or city of the head office of the Mobile Banking and Payment Point. (2) Mobile Banking is prohibited from conducting business activities other than:
a. accepting credit installments; b. accepting applications for opening new savings accounts including customer savings deposits;
c. serving savings withdrawals for customers according to the authority given by their head office; and
d. accepting fund deposits for bill payment service.
(3) Payment Points are prohibited from conducting business activities other than payment services or receiving payments through agreements with other parties at a specific location.

Article 91
(1) Exhibition activities conducted for promotion and not being permanent are activities that are not included in Mobile Banking and Payment Points.
(2) BPRs conducting exhibition activities must meet the following requirements:
a. conducted for a period of less than 30 (thirty) days; b. the exhibition activity is reported to the Financial Services Authority no later than 3 (three) Working Days before the implementation of the activity;
c. there are employees from the BPR's head office or Branch Office who are responsible for the service of opening savings accounts conducted during the exhibition activity; and
d. the availability of internal policies and procedures including the mechanism for serving the opening of savings accounts conducted during the exhibition activity.
(3) BPRs in exhibition activities are prohibited from providing services other than:
a. promoting the products of the respective BPR; b. serving the opening of new savings accounts; and
c. serving credit applications.

Article 92
(1) BPRs that establish Mobile Cash Services and Payment Points must include plans for opening Mobile Cash Services and Payment Points in the BPR's business plan.
(2) BPRs are required to submit reports on Mobile Cash Services and Payment Points as referred to in paragraph (1) online through the Financial Services Authority's reporting system in the reporting period closest to the date of implementation of the Mobile Cash Services and Payment Points.

Article 93
BPRs are required to combine the financial reports of Cash Offices, Mobile Cash Services, and Payment Points with the financial reports of the head office or Branch Office that serves as the parent office on the same Business Day.

Article 94
BPRs are required to submit reports on the use of PPE and any additional PPE managed directly by the BPR online through the Financial Services Authority's reporting system in the reporting period closest to the date of implementation of the PPE use.

Third Section
Relocation of Office Network Addresses

Article 95
(1) BPRs are required to obtain approval from the Financial Services Authority to relocate the address of the head office and/or Branch Offices.
(2) BPRs submitting a request for approval for the relocation of the address of the head office and/or Branch Offices as referred to in paragraph (1) must meet the following requirements:
a. the plan to relocate the address of the head office and/or Branch Office has been included in the BPR's business plan; b. the paid-up capital for the establishment of the BPR in the new head office zone, in the event that the relocation of the head office address is to a zone with higher paid-up capital requirements for the establishment of the BPR than the original head office zone; and
c. settling or transferring the debts and obligations of the head office and/or Branch Offices.

Article 96
Requests for approval for the relocation of the address of the head office and/or Branch Offices as referred to in Article 95 paragraph (2) are submitted to the Financial Services Authority, accompanied by requirement documents as listed in Appendix Section M, which is an integral part of this Financial Services Authority Regulation, including:
a. reasons for relocating the address of the head office and/or Branch Offices; b. analysis of the potential and feasibility of relocating the address of the head office and/or Branch Offices, in the event that the relocation of the address of the head office and/or Branch Offices impacts an increase in risk and changes in the BPR's competitiveness;
c. proof of settlement or transfer of debts and obligations of the head office and/or Branch Offices;
d. proof of operational readiness including facilities; and e. proof of announcement of the plan to relocate the address of the head office and/or Branch Offices on announcement boards at all relevant BPR offices and in local daily newspapers, electronic media, and/or the BPR's website.

Article 97
(1) The Financial Services Authority processes requests and provides approval or rejection of requests for the relocation of the address of the head office and/or Branch Offices as referred to in Article 96 within a maximum of 20 (twenty) Business Days from the date the request along with the required documents is received in full. (2) The time period as referred to in paragraph (1) does not include time given to the BPR to complete, repair, and/or update the documents required in the submission of requests for the relocation of the address of the head office and/or Branch Offices. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts research on the fulfillment of requirements, including:
a. assessment of the analysis of the potential and feasibility of relocating the office address, in the event that the relocation of the address of the head office and/or Branch Offices impacts an increase in risk and changes in the BPR's competitiveness; b. assessment of the settlement or transfer of debts and obligations of the head office and/or Branch Offices; and
c. analysis and research on proof of operational readiness including facilities.

Article 98
(1) The Financial Services Authority conducts research on the completeness of requirement documents for requests as referred to in Article 96.
(2) In the event that, based on research on the completeness of documents as referred to in paragraph (1), the documents are not yet complete, the Financial Services Authority notifies the BPR to complete the missing documents and resubmit them to the Financial Services Authority within a maximum of 10 (ten) Business Days from the date of notification from the Financial Services Authority. (3) In the event that the BPR does not complete, repair, and/or update the missing documents within the time limit as referred to in paragraph (2), the BPR is deemed to have cancelled the request for the relocation of the address of the head office and/or Branch Offices. (4) In the event that the documents for the request for the relocation of the address of the head office and/or Branch Offices submitted are assessed as complete, the Financial Services Authority notifies the BPR that the documents are complete and the process of approval or rejection of the relocation of the address of the head office and/or Branch Offices begins to run from the date of notification.

Article 99
(1) In conducting research on the fulfillment of requirements as referred to in Article 97 paragraph (3), the Financial Services Authority may request additional and/or corrected documents submitted through notification to the BPR. (2) Additional and/or corrected documents as referred to in paragraph (1) are submitted to the Financial Services Authority within a maximum of 20 (twenty) Business Days from the date of notification from the Financial Services Authority. (3) In the event that the BPR does not submit additional and/or corrected documents within the time limit as referred to in paragraph (2), the request for approval for the relocation of the address of the head office and/or Branch Offices is rejected.

Article 100
(1) BPRs that obtain approval for the relocation of the address of the head office and/or Branch Offices as referred to in Article 97 paragraph (1) are required to relocate the address within a maximum of:
a. 30 (thirty) Business Days for the relocation of the address of the head office; or b. 20 (twenty) Business Days for the relocation of the address of Branch Offices, from the date of approval by the Financial Services Authority.

(2) BPRs are required to submit reports on the relocation of the address of the head office and/or Branch Offices online through the Financial Services Authority's reporting system in the reporting period closest to the date of implementation of the relocation of the address of the head office and/or Branch Offices. (3) In addition to submitting reports to the Financial Services Authority as referred to in paragraph (2), BPRs apply for approval of amendments to the articles of association regarding the relocation of the address of the head office to the competent agency in accordance with applicable regulations. (4) In the event that the BPR does not execute the relocation of the address of the head office and/or Branch Offices within the time limit as referred to in paragraph (1), the approval for the relocation of the address of the head office and/or Branch Offices that has been given is declared void and invalid.

Article 101
(1) BPRs must include plans for the relocation of the address of Cash Offices in the BPR's business plan.
(2) BPRs are required to announce the implementation of the relocation of the address of Cash Offices on announcement boards at all relevant BPR offices and in local daily newspapers, electronic media, and/or the BPR's website within a maximum of 10 (ten) Business Days before the date of implementation of the relocation of the address of Cash Offices. (3) BPRs are required to submit reports on the relocation of the address of Cash Offices online through the Financial Services Authority's reporting system in the reporting period closest to the date of implementation of the relocation of the address of Cash Offices, accompanied by proof of announcement as referred to in paragraph (2).

Article 102
(1) BPRs relocating Payment Points and PPE locations must comply with Financial Services Authority Regulations regarding the business plans of rural banks and sharia rural financing banks. (2) BPRs are required to submit reports on the relocation of Payment Points and PPE locations as referred to in paragraph (1) online through the Financial Services Authority's reporting system in the reporting period closest to the date of implementation of the relocation of Payment Points and PPE locations.

Fourth Section
Operational Activities and Temporary Closure of Office Networks

Article 103
(1) BPRs must establish the days and hours of operational hours for BPR offices.
(2) BPR offices may conduct operational activities on specific days and times outside of operational hours and on national holidays.
(3) In the event that BPRs conduct operational activities as referred to in paragraph (2), BPRs are required to submit reports on the BPR's plan and/or some BPR offices to conduct operational activities outside of operational hours and on national holidays to the Financial Services Authority within a maximum of 10 (ten) Business Days before the implementation of the operational activities. (4) In the event that BPRs conduct operational activities outside of operational hours and on national holidays based on government decisions that cause the time limit for plan reports as referred to in paragraph (3) not to be met, BPRs are required to submit reports on operational activities outside of operational hours and on national holidays to the Financial Services Authority within a maximum of 10 (ten) Business Days after the implementation of the operational activities.

Article 104
(1) BPRs may temporarily close BPR offices outside of official holidays for specific reasons.
(2) Temporary closure of BPR offices as referred to in paragraph (1) is conducted for a maximum of 5 (five) Business Days within a period of 1 (one) calendar year.
(3) BPRs are required to announce the dates of temporary closure of BPR offices outside of official holidays as referred to in paragraph (1) to the public on announcement boards at the temporarily closed BPR offices within a maximum of 5 (five) Business Days before the date of temporary closure. (4) BPRs are required to submit reports on plans for the temporary closure of BPR offices outside of official holidays as referred to in paragraph (1) to the Financial Services Authority within a maximum of 5 (five) Business Days before the implementation of the temporary closure, accompanied by proof of announcement as referred to in paragraph (3). (5) BPRs are required to submit reports on the reopening of offices within a maximum of 3 (three) Business Days from the date of reopening.

Fifth Section
Changes in Status of Office Networks

Article 105
(1) BPRs must include plans for changes in the status of Office Networks in the BPR's business plan.
(2) Changes in the status of BPR Office Networks as referred to in paragraph (1) consist of:
a. upgrading the status of a Cash Office to a Branch Office; or b. downgrading the status of a Branch Office to a Cash Office.

Article 106
(1) Upgrading the status of a Cash Office to a Branch Office as referred to in Article 105 paragraph (2) letter a must obtain permission from the Financial Services Authority.
(2) BPRs submitting requests for permission to upgrade the status of a Cash Office to a Branch Office must meet the following requirements:
a. having financial conditions and health levels capable of supporting the development of BPR business activities and absorbing possible business losses; b. no violations of regulations related to BPRs;
c. meeting the completeness of organizational structure and standard operating procedures; and
d. completing infrastructure and supporting facilities for operational activities.
(3) BPRs submit requests for permission to upgrade the status of a Cash Office to a Branch Office to the Financial Services Authority accompanied by requirement documents as listed in Appendix Section N, which is an integral part of this Financial Services Authority Regulation, including:
a. documents analyzing considerations for upgrading the office status, including:

financial projections for the Branch Office for the next 12 (twelve) months, including plans for fund gathering and credit disbursement; and
products and services provided, including promotional strategies and approaches to target markets; and
b. proof of operational readiness for the Branch Office.

Article 107
(1) The Financial Services Authority processes requests and provides approval or rejection of requests for permission to upgrade the status of a Cash Office to a Branch Office within a maximum of 30 (thirty) Business Days from the date the request along with the required documents is received in full. (2) The time period as referred to in paragraph (1) does not include time given to the BPR to complete, repair, and/or update the documents required in the submission of requests for permission to upgrade the status of a Cash Office to a Branch Office. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts research on:
a. fulfillment of requirements, including:

analysis of considerations for upgrading the status of a Cash Office to a Branch Office; and
analysis of proof of operational readiness,
as referred to in Article 106 paragraph (3); and b. fulfillment of requirements as referred to in Article 106 paragraph (2).

Article 108
(1) The Financial Services Authority conducts research on the completeness of requirement documents for requests as referred to in Article 106 paragraph (3).
(2) In the event that, based on research on the completeness of documents as referred to in paragraph (1), the documents are not yet complete, the Financial Services Authority notifies the BPR to complete the missing documents and resubmit them to the Financial Services Authority within a maximum of 10 (ten) Business Days from the date of notification from the Financial Services Authority. (3) In the event that the BPR does not complete, repair, and/or update the missing documents within the time limit as referred to in paragraph (2), the BPR is deemed to have cancelled the request for permission to upgrade the status of a Cash Office to a Branch Office. (4) In the event that the documents for the request for permission to upgrade the status of a Cash Office to a Branch Office submitted are assessed as complete, the Financial Services Authority notifies the BPR that the documents are complete and the process of approval or rejection of permission to upgrade the status of a Cash Office to a Branch Office begins to run from the date of notification.

Article 109
(1) In conducting research on the fulfillment of requirements as referred to in Article 107 paragraph (3) letter a, the Financial Services Authority may request additional and/or corrected documents submitted through notification to the BPR. (2) Additional and/or corrected documents as referred to in paragraph (1) are submitted to the Financial Services Authority within a maximum of 20 (twenty) Business Days from the date of notification from the Financial Services Authority. (3) In the event that the BPR does not submit additional and/or corrected documents within the time limit as referred to in paragraph (2), the request for permission to upgrade the status of a Cash Office to a Branch Office is rejected. (4) In the event that, based on the results of research on requirements as referred to in Article 107 paragraph (3) letter b, there are:
a. ratios or key financial indicators that have the potential to lower financial performance; and/or b. violations of regulations related to BPRs, the request for permission to upgrade the status of a Cash Office to a Branch Office is rejected.

Article 110
(1) BPRs that obtain permission to upgrade the status of a Cash Office to a Branch Office are required to open the Branch Office within a maximum of 20 (twenty) Business Days from the date of permission from the Financial Services Authority. (2) BPRs are required to announce the implementation of the upgrade of the status of a Cash Office to a Branch Office as referred to in paragraph (1) to the public on announcement boards at the BPR office whose status is upgraded within a maximum of 5 (five) Business Days from the date the BPR obtains permission from the Financial Services Authority. (3) BPRs are required to submit reports on the implementation of the upgrade of the status of a Cash Office to a Branch Office online through the Financial Services Authority's reporting system in the reporting period closest to the date of implementation of the opening of the Branch Office, accompanied by proof of announcement as referred to in paragraph (2). (4) In the event that the BPR does not upgrade the status of a Cash Office to a Branch Office within the time limit as referred to in paragraph (1), the permission to upgrade the status of a Cash Office to a Branch Office that has been given is declared void and invalid. (5) In the event that the Financial Services Authority's online reporting system is not yet available, BPRs are required to submit reports as referred to in paragraph (3) offline. (6) The obligation to submit reports as referred to in paragraph (5) is conducted within a maximum of 10 (ten) Business Days from the date of implementation of the opening of the Branch Office, accompanied by proof of announcement as referred to in paragraph (2).

Article 111
(1) BPRs submit requests for plans to downgrade the status of a Branch Office to a Cash Office as referred to in Article 105 paragraph (2) letter b to the Financial Services Authority accompanied by requirement documents as listed in Appendix Section O, which is an integral part of this Financial Services Authority Regulation, including:
a. reasons for downgrading the office status; b. proof of settlement or transfer of Branch Office debts to customers and other parties; and
c. proof of operational readiness for the Cash Office.
(2) The Financial Services Authority processes requests and provides confirmation of requests as referred to in paragraph (1) within a maximum of 20 (twenty) Business Days from the date the request along with the required documents is received in full. (3) The time period as referred to in paragraph (1) does not include time given to the BPR to complete, repair, and/or update the documents required in the submission of requests to downgrade the status of a Branch Office to a Cash Office.

Article 112
(1) The Financial Services Authority conducts research on the completeness of requirement documents for requests as referred to in Article 111 paragraph (1).
(2) In the event that, based on research on the completeness of documents as referred to in paragraph (1), the documents are not yet complete, the Financial Services Authority notifies the BPR to complete the missing documents and resubmit them to the Financial Services Authority within a maximum of 10 (ten) Business Days from the date of notification from the Financial Services Authority. (3) In the event that the BPR does not complete, repair, and/or update the missing documents within the time limit as referred to in paragraph (2), the request to downgrade the status of a Branch Office to a Cash Office is rejected.

Article 113
(1) BPRs that obtain confirmation to downgrade the status of a Branch Office to a Cash Office as referred to in Article 111 paragraph (2) are required to open the Cash Office within a maximum of 20 (twenty) Business Days from the date of confirmation from the Financial Services Authority. (2) BPRs are required to announce the implementation of the downgrade of the status of a Branch Office to a Cash Office as referred to in paragraph (1) to the public on announcement boards at the BPR office that is downgrading the status within a maximum of 5 (five) Business Days from the date of confirmation from the Financial Services Authority. (3) BPRs are required to submit reports on the implementation of the downgrade of the status of a Branch Office to a Cash Office as referred to in paragraph (1) online through the Financial Services Authority's reporting system in the reporting period closest to the date of implementation of the opening of the Cash Office, accompanied by proof of announcement as referred to in paragraph (2). (4) In the event that the BPR does not downgrade the status of a Branch Office to a Cash Office within the time limit as referred to in paragraph (1), the confirmation that has been given is declared void and invalid. (5) In the event that the Financial Services Authority's online reporting system is not yet available, BPRs are required to submit reports as referred to in paragraph (3) offline. (6) The obligation to submit reports as referred to in paragraph (5) is conducted within a maximum of 10 (ten) Business Days from the date of implementation of the opening of the Cash Office, accompanied by proof of announcement as referred to in paragraph (2).

Sixth Section
Closure of Office Networks

Article 114
(1) BPRs are required to obtain approval from the Financial Services Authority to close Branch Offices.
(2) BPRs must include plans for the closure of Branch Offices in the BPR's business plan.
(3) Requests for approval for the closure of Branch Offices as referred to in paragraph (1) are submitted to the Financial Services Authority, accompanied by requirement documents as listed in Appendix Section P, which is an integral part of this Financial Services Authority Regulation, including:
a. reasons for closing the Branch Office; b. proof of announcement of the plan to close the Branch Office on announcement boards at all relevant BPR offices and in local daily newspapers, electronic media, and/or the BPR's website.
c. proof of settlement of all obligations to customers and other parties related to the closure of the Branch Office, at least in the form of documents on the settlement of obligations to customers or the transfer of administrative matters of customers of the Branch Office to another Branch Office or another bank with customer consent;
d. proof of settlement of all assets, including foreign currency assets in the event that the Branch Office conducts foreign currency exchange business; e. projections of the financial position reports of the Branch Office showing that all obligations of the Branch Office to customers and other parties have been settled; and f. a statement letter from all members of the Board of Directors of the BPR that:

the BPR has settled all obligations to customers and other parties related to the closure of the BPR's Branch Office and if there are claims in the future, they become the responsibility of the BPR; and
the BPR has settled all assets, including foreign currency assets in the event that the Branch Office conducts foreign currency exchange business.

Article 115
(1) The Financial Services Authority processes requests and provides approval or rejection of requests for the closure of Branch Offices as referred to in Article 114 paragraph (3) within a maximum of 10 (ten) Business Days after:
a. the request along with the required documents is received in full; and b. all obligations have been settled.
(2) The time period as referred to in paragraph (1) does not include time given to the BPR to complete, repair, and/or update the documents required in the submission of requests for the closure of Branch Offices. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts research on the fulfillment of requirements as referred to in Article 114 paragraph (2) and paragraph (3).

Article 116
(1) The Financial Services Authority conducts research on the completeness of requirement documents for requests as referred to in Article 114 paragraph (3).
(2) In the event that, based on research on the completeness of documents as referred to in paragraph (1), the documents are not yet complete, the Financial Services Authority notifies the BPR to complete the missing documents and resubmit them to the Financial Services Authority within a maximum of 10 (ten) Business Days from the date of notification from the Financial Services Authority. (3) In the event that the BPR does not complete, repair, and/or update the missing documents within the time limit as referred to in paragraph (2), the BPR is deemed to have cancelled the request for approval for the closure of Branch Offices. (4) In the event that the documents for the request for approval for the closure of Branch Offices submitted are assessed as complete, the Financial Services Authority notifies the BPR that the documents are complete and the process of approval

or rejection of Branch Closure starts running from the date of notification.

Article 117
(1) In conducting research regarding the fulfillment of requirements as referred to in Article 115 paragraph (3), the Financial Services Authority may request additional and/or corrected documents submitted through notification to the Rural Bank. (2) Additional and/or corrected documents as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 10 (ten) Working Days from the date of notification from the Financial Services Authority. (3) In the event that the Rural Bank does not submit additional and/or corrected documents within the time limit as referred to in paragraph (2), the application for approval of Branch Closure is rejected.

Article 118
(1) The operational license of the Branch previously granted becomes invalid as of the date of approval of Branch Closure as referred to in Article 114 paragraph (1).
(2) The Rural Bank is required to announce the closure of the Branch as referred to in paragraph (1) to the public on the announcement board at all Rural Bank offices, no later than 10 (ten) Working Days from the date of approval from the Financial Services Authority. (3) The Rural Bank is required to carry out the closure of the Branch no later than 20 (twenty) Working Days from the date of approval from the Financial Services Authority. (4) The Rural Bank is required to submit a report on the implementation of the Branch Closure online through the Financial Services Authority reporting system in the reporting period closest to the date of implementation of the Branch Closure, accompanied by proof of announcement as referred to in paragraph (2).

Article 119
(1) The Rural Bank must include the plan to close Cash Offices and Cash Service Activities in the Rural Bank's business plan.
(2) The Rural Bank is required to announce the plan to close Cash Offices and Cash Service Activities as referred to in paragraph (1) to the public on the announcement board at the relevant Cash Office and the Rural Bank office that is the parent of the Cash Office no later than 10 (ten) Working Days before the date of closure. (3) The Rural Bank is required to submit a report on the implementation of the closure of Cash Offices and Cash Service Activities online through the Financial Services Authority reporting system in the reporting period closest to the date of implementation of the closure of Cash Offices and Cash Service Activities, accompanied by proof of announcement as referred to in paragraph (2).

Seventh Section
Office Network Network in Force Majeure Conditions

Paragraph 1
Temporary Relocation of Office Network Address

Article 120
(1) The Rural Bank may temporarily relocate the Office Network Address due to force majeure.
(2) The Rural Bank is required to announce the temporary relocation of the Office Network Address as referred to in paragraph (1) to the public on the announcement board at all relevant Rural Bank offices, local daily newspapers, electronic mass media, and/or the Rural Bank's website no later than 10 (ten) Working Days after the force majeure event occurs. (3) The Rural Bank is required to submit a report on the implementation of the temporary relocation of the Office Network Address as referred to in paragraph (1) to the Financial Services Authority no later than 10 (ten) Working Days after the Office Network Address relocation is carried out, accompanied by proof of announcement as referred to in paragraph (2). (4) The Rural Bank is required to announce the re-migration of the Office Network to the original location to the public on the announcement board at all relevant Rural Bank offices, local daily newspapers, electronic mass media, and/or the Rural Bank's website no later than 10 (ten) Working Days before the date of relocation. (5) The Rural Bank is required to submit a report on the re-migration of the Office Network to the original location to the Financial Services Authority no later than 10 (ten) Working Days from the date of relocation, accompanied by proof of announcement as referred to in paragraph (4).

Paragraph 2
Relocation of Office Network Address

Article 121
(1) The Rural Bank may relocate the Office Network Address due to force majeure.
(2) The Rural Bank is required to announce the relocation of the Office Network Address as referred to in paragraph (1) to the public on the announcement board at all relevant Rural Bank offices, local daily newspapers, electronic mass media, and/or the Rural Bank's website no later than 5 (five) Working Days before the relocation of the Office Network Address. (3) The Rural Bank must submit a report on the relocation of the Office Network Address due to force majeure as referred to in paragraph (1) to the Financial Services Authority, accompanied by requirement documents as listed in Appendix Section Q which is an integral part of this Financial Services Authority Regulation, including:
a. proof of settlement or transfer of claims and obligations of the Head Office and/or Branch; b. copy of the deed of amendment of the Articles of Association which has been approved by the competent authority, in the event of relocation of the Head Office address;
c. proof of readiness of the Head Office and/or Branch including facilities; and
d. proof of announcement as referred to in paragraph (2).
(4) The Rural Bank is required to submit a report on the relocation of the Office Network Address as referred to in paragraph (3) no later than 20 (twenty) Working Days after the implementation of the relocation of the Office Network Address.

Paragraph 3
Temporary Closure of Office Network

Article 122
(1) The Rural Bank may temporarily close the Office Network due to force majeure.
(2) The Rural Bank is required to announce the date of temporary closure of the Office Network as referred to in paragraph (1) to the public on the announcement board at all relevant Rural Bank offices, local daily newspapers, electronic mass media, and/or the Rural Bank's website no later than 5 (five) Working Days after the force majeure event occurs. (3) The Rural Bank is required to submit a report on the implementation of the temporary closure of the Office Network as referred to in paragraph (1) to the Financial Services Authority no later than 10 (ten) Working Days after the implementation of the temporary closure of the Office Network, accompanied by proof of announcement as referred to in paragraph (2). (4) The Rural Bank is required to submit a report on the reopening of the Office Network to the Financial Services Authority no later than 10 (ten) Working Days from the date of reopening of the Office Network.

Article 123
(1) Rural Banks that do not fulfill the provisions as referred to in Article 81 paragraph (1), Article 86 paragraph (1), Article 88 paragraph (2), Article 90 paragraph (2), Article 90 paragraph (3), Article 91 paragraph (3), Article 93, Article 95 paragraph (1), Article 100 paragraph (1), Article 101 paragraph (2), Article 104 paragraph (3), Article 106 paragraph (1), Article 110 paragraph (1), Article 110 paragraph (2), Article 113 paragraph (1), Article 113 paragraph (2), Article 114 paragraph (1), Article 118 paragraph (2), Article 118 paragraph (3), Article 119 paragraph (2), Article 120 paragraph (2), Article 120 paragraph (4), Article 121 paragraph (2), Article 121 paragraph (4), and/or Article 122 paragraph (2), are subject to administrative sanctions in the form of written reprimands. (2) In the event that the Rural Bank has been subject to administrative sanctions as referred to in paragraph (1), and the Rural Bank still does not fulfill the provisions as referred to in Article 81 paragraph (1), Article 86 paragraph (1), Article 88 paragraph (2), Article 90 paragraph (2), Article 90 paragraph (3), Article 91 paragraph (3), Article 93, Article 95 paragraph (1), Article 100 paragraph (1), Article 101 paragraph (2), Article 104 paragraph (3), Article 106 paragraph (1), Article 110 paragraph (1), Article 110 paragraph (2), Article 113 paragraph (1), Article 113 paragraph (2), Article 114 paragraph (1), Article 118 paragraph (2), Article 118 paragraph (3), Article 119 paragraph (2), Article 120 paragraph (2), Article 120 paragraph (4), Article 121 paragraph (2), Article 121 paragraph (4), and/or Article 122 paragraph (2), may be subject to administrative sanctions in the form of a one-predicate downgrade of the Rural Bank's health level. (3) Rural Banks that are late in submitting reports or proof of announcement as referred to in Article 69 paragraph (3), Article 103 paragraph (3), Article 103 paragraph (4), Article 104 paragraph (4), Article 104 paragraph (5), Article 110 paragraph (5), Article 113 paragraph (5), Article 120 paragraph (3), Article 120 paragraph (5), Article 121 paragraph (4), Article 122 paragraph (3), and/or Article 122 paragraph (4), are subject to administrative sanctions in the form of a fine of IDR 100,000.00 (one hundred thousand rupiah) per Working Day and a maximum of IDR 5,000,000.00 (five million rupiah). (4) Rural Banks that have been subject to administrative sanctions in the form of a fine as referred to in paragraph (3) must still submit reports or proof of announcement. (5) Rural Banks that do not fulfill the provisions as referred to in Article 86 paragraph (2), Article 89 paragraph (2), Article 92 paragraph (2), Article 94, Article 100 paragraph (2), Article 101 paragraph (3), Article 102 paragraph (2), Article 110 paragraph (3), Article 113 paragraph (3), Article 118 paragraph (4), and/or Article 119 paragraph (3) are subject to administrative sanctions in accordance with the Financial Services Authority
Regulation regarding the reporting of rural banks and sharia rural financing banks through the Financial Services Authority reporting system.

CHAPTER VII
CHANGE OF NAME AND LEGAL ENTITY FORM

First Section
Change of Rural Bank Name

Article 124
(1) Change of Rural Bank name must fulfill the provisions of legislation.
(2) Rural Banks that change their name are required to prepare:
a. adjustment of name writing on nameplates, documents, forms, and instruments in accordance with the new Rural Bank name; and b. supply of deposit receipts, savings books, forms, and instruments in accordance with the new Rural Bank name. (3) Rural Banks that have obtained approval for the amendment of the Articles of Association regarding the use of the new name from the competent authority are required to:
a. announce the name change to the public on the announcement board at all Rural Bank offices and local daily newspapers, electronic mass media, and/or the Rural Bank's website, no later than 10 (ten) Working Days from the date of approval of the amendment of the Articles of Association from the competent authority; and b. submit an application for confirmation of the use of the Rural Bank business license with the new name to the Financial Services Authority no later than 5 (five) Working Days from the announcement of the name change as referred to in letter a.

(4) The Rural Bank submits an application for confirmation as referred to in paragraph (3) letter b accompanied by requirement documents as listed in Appendix Section R which is an integral part of this Financial Services Authority Regulation, including:
a. reasons for name change; b. copy of the deed of amendment of the Articles of Association;
c. proof of approval for the amendment of the Articles of Association from the competent authority;
d. documents, forms, and instruments used by the Rural Bank with the new name; e. proof of announcement as referred to in paragraph (3) letter a; and f. minutes of the destruction of supply of deposit receipts, savings books, forms, and instruments of the Rural Bank with the old name that have not been used.

Article 125
(1) The Financial Services Authority processes applications and provides confirmation of the determination of the use of the Rural Bank business license with the new name as referred to in Article 124 paragraph (4) for a maximum of 20 (twenty) Working Days from the date the application and required documents are received completely. (2) The time limit as referred to in paragraph (1) does not include time given to the Rural Bank to complete, correct, and/or update the documents required in the submission of the application for confirmation of the determination of the use of the Rural Bank business license with the new name. (3) In providing confirmation of the application for determination of the Rural Bank business license with the new name as referred to in paragraph (1), the Financial Services Authority conducts research on the fulfillment of requirements.

Article 126
(1) The Financial Services Authority conducts research on the completeness of requirement documents for the application as referred to in Article 124 paragraph (4).
(2) In the event that based on research on the completeness of documents as referred to in paragraph (1) is not yet complete, the Financial Services Authority notifies the Rural Bank to complete the missing documents and submit them back to the Financial Services Authority no later than 10 (ten) Working Days from the date of notification from the Financial Services Authority. (3) In the event that the Rural Bank does not complete the missing documents within the time limit as referred to in paragraph (2), the Financial Services Authority may issue a letter of objection to the use of the new Rural Bank name. (4) In the event that the application documents for the determination of the Rural Bank business license with the new name submitted are assessed to be complete, the Financial Services Authority notifies the Rural Bank that the documents are complete and the process of confirmation of the determination of the Rural Bank business license with the new name starts running from the date of notification.

Second Section
Change of Legal Entity Form

Article 127
(1) Rural Banks may change their legal entity form by fulfilling the provisions of legislation.
(2) Rural Banks are required to obtain approval from the Financial Services Authority to change their legal entity form.
(3) The provision of approval for the change of Rural Bank legal entity form as referred to in paragraph (2) is carried out in 2 (two) stages:
a. principle approval; and b. approval of transfer of business license.

Article 128
(1) Rural Banks submit an application to obtain principle approval for the change of Rural Bank legal entity form as referred to in Article 127 paragraph (3) letter a to the Financial Services Authority, accompanied by requirement documents as listed in Appendix Section S which is an integral part of this Financial Services Authority Regulation, attached with:
a. minutes of the General Meeting of Shareholders (GMS); b. reasons for changing the Rural Bank's legal entity form;
c. draft deed of establishment of the new legal entity containing the Articles of Association;
d. plan for the transfer of all rights and obligations from the old legal entity to the new legal entity; e. ownership data accompanied by supporting documents; and f. list of candidates for Directors and candidates for Commissioners, if there is a change. (2) The Financial Services Authority processes applications and provides approval or rejection of the application for principle approval as referred to in paragraph (1) for a maximum of 20 (twenty) Working Days from the date the application and required documents are received completely. (3) The time limit as referred to in paragraph (2) does not include time given to the Rural Bank to complete, correct, and/or update the documents required in the submission of the application for principle approval for the change of legal entity form. (4) In providing approval or rejection as referred to in paragraph (2), the Financial Services Authority conducts:
a. research on the fulfillment of requirements; and b. assessment of competence and propriety, if there is a replacement or change of Principal Shareholder (PSP), Directors, and/or Commissioners.

Article 129
(1) The Financial Services Authority conducts research on the completeness of requirement documents for the application as referred to in Article 128 paragraph (1).
(2) In the event that based on research on the completeness of documents as referred to in paragraph (1) is not yet complete, the Financial Services Authority notifies the Rural Bank to complete the missing documents and submit them back to the Financial Services Authority no later than 10 (ten) Working Days from the date of notification from the Financial Services Authority. (3) In the event that the Rural Bank does not complete, correct, and/or update the missing documents within the time limit as referred to in paragraph (2), the Rural Bank is deemed to have cancelled the application for principle approval for the change of Rural Bank legal entity form. (4) In the event that the application documents for the principle approval for the change of Rural Bank legal entity form submitted are assessed to be complete, the Financial Services Authority notifies the Rural Bank that the documents are complete and the process of principle approval for the change of Rural Bank legal entity form starts running from the date of notification.

Article 130
(1) In conducting research regarding the fulfillment of requirements as referred to in Article 128 paragraph (4) letter a, the Financial Services Authority may request additional and/or corrected documents submitted through notification to the Rural Bank. (2) Additional and/or corrected documents as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 20 (twenty) Working Days from the date of notification from the Financial Services Authority. (3) In the event that the Rural Bank does not submit additional and/or corrected documents within the time limit as referred to in paragraph (2), the Rural Bank is deemed to have cancelled the application for principle approval for the change of Rural Bank legal entity form.

Article 131
(1) Principle approval for the change of Rural Bank legal entity form as referred to in Article 127 paragraph (3) letter a is valid for 120 (one hundred twenty) Working Days from the date of approval. (2) In the event that the Rural Bank does not submit an application for transfer of business license within the time limit as referred to in paragraph (1), the principle approval that has been granted is declared void and invalid.

Article 132
(1) Rural Banks submit an application to transfer the Rural Bank business license from the old legal entity to the new legal entity as referred to in Article 127 paragraph (3) letter b to the Financial Services Authority, accompanied by requirement documents as listed in Appendix Section T which is an integral part of this Financial Services Authority Regulation, attached with:
a. copy of the deed of establishment of the new legal entity containing the Articles of Association and approval from the competent authority; b. ownership data accompanied by supporting documents, if there is a change;
c. list of candidates for Directors and candidates for Commissioners, if there is a replacement;
d. copy of the minutes deed made in a notarial deed regarding the transfer of all rights and obligations from the old legal entity to the new legal entity; e. minutes or GMS minutes of the old legal entity approving the change of legal entity form and dissolution of the old legal entity as referred to in letter a or its amendment if there is a change in the GMS decision; and f. example of forms or instruments to be used by the new legal entity. (2) The Financial Services Authority processes applications and provides approval or rejection of the application for transfer of business license from the old legal entity to the new legal entity for a maximum of 20 (twenty) Working Days from the date the application and required documents are received completely. (3) The time limit as referred to in paragraph (2) does not include time given to the Rural Bank to complete, correct, and/or update the documents required in the submission of the application for transfer of business license from the old legal entity to the new legal entity. (4) In providing approval or rejection as referred to in paragraph (2), the Financial Services Authority conducts:
a. research on the fulfillment of requirements; and b. assessment of competence and propriety, if there is a replacement or change of candidate Principal Shareholder (PSP), candidate Directors, and/or candidate Commissioners.

Article 133
(1) The Financial Services Authority conducts research on the completeness of requirement documents as referred to in Article 132 paragraph (1).
(2) In the event that based on research on the completeness of documents as referred to in paragraph (1) is not yet complete, the Financial Services Authority notifies the Rural Bank to complete the missing documents and submit them back to the Financial Services Authority no later than 10 (ten) Working Days from the date of notification from the Financial Services Authority. (3) In the event that the application documents for approval of transfer of business license from the old legal entity to the new legal entity submitted are assessed to be complete, the Financial Services Authority notifies the Rural Bank that the documents are complete and the process of approval of transfer of business license from the old legal entity to the new legal entity starts running from the date of notification.

Article 134
(1) Dissolution of the old legal entity is prohibited before:
a. the transfer of all rights and obligations from the old legal entity to the new legal entity has been carried out in accordance with the minutes deed as referred to in Article 132 paragraph (1) letter d; and b. the Financial Services Authority provides approval for the transfer of business license as referred to in Article 132 paragraph (2). (2) Rural Banks that have obtained approval for the transfer of business license from the old legal entity to the new legal entity are required to:
a. announce the change of Rural Bank legal entity form to the public on the announcement board at all relevant Rural Bank offices, local daily newspapers, electronic mass media, and/or the Rural Bank's website, no later than 10 (ten) Working Days from the approval of the application for transfer of business license from the old legal entity to the new legal entity from the Financial Services Authority; b. change the name writing on nameplates, documents, forms, and instruments in accordance with the new Rural Bank legal entity form that has been approved by the Financial Services Authority no later than 20 (twenty) Working Days from the approval of the application for transfer of business license from the old legal entity to the new legal entity from the Financial Services Authority;
c. use supplies of deposit receipts, savings books, forms, and instruments with the new legal entity form for Rural Bank operational activities no later than 20 (twenty) Working Days from the approval of the application for transfer of business license from the old legal entity to the new legal entity from the Financial Services Authority;
d. submit minutes of the destruction of supplies of deposit receipts, savings books, forms, or instruments of the Rural Bank with the old legal entity form that have not been used no later than 20 (twenty) Working Days from the approval of the application for transfer of business license from the old legal entity to the new legal entity from the Financial Services Authority; and e. submit proof of dissolution of the old legal entity to the Financial Services Authority no later than 20 (twenty) Working Days from the approval of the competent authority. (3) Rural Banks that have obtained approval for the transfer of business license from the old legal entity to the new legal entity are required to submit proof of announcement of the change of legal entity form as referred to in paragraph (2) letter a to the Financial Services Authority no later than 10 (ten) Working Days from the date of announcement. (4) The procedure for the dissolution of the old legal entity and removal from the company list is carried out in accordance with the provisions of legislation.

Article 135
(1) Rural Banks that do not fulfill the provisions as referred to in Article 124 paragraph (2), Article 124 paragraph (3), Article 127 paragraph (2), Article 134 paragraph (1), and/or Article 134 paragraph (2), are subject to administrative sanctions in the form of written reprimands. (2) In the event that the Rural Bank has been subject to administrative sanctions as referred to in paragraph (1), and the Rural Bank still does not fulfill the provisions as referred to in Article 124 paragraph (2), Article 124 paragraph (3), Article 127 paragraph (2), Article 134 paragraph (1), and/or Article 134 paragraph (2), may be subject to administrative sanctions in the form of a one-predicate downgrade of the Rural Bank's health level. (3) Rural Banks that are late in submitting proof of announcement as referred to in Article 134 paragraph (3), are subject to administrative sanctions in the form of a fine of IDR 100,000.00 (one hundred thousand rupiah) per Working Day and a maximum of IDR 5,000,000.00 (five million rupiah). (4) Rural Banks that have been subject to administrative sanctions in the form of a fine as referred to in paragraph (3) must still submit proof of announcement.

CHAPTER VIII
CHANGE OF BUSINESS ACTIVITY

Article 136
(1) Rural Banks may change their business activity to become a Sharia Rural Bank (BPRS) with the license of the Financial Services Authority.
(2) Provisions regarding the provision of license for change of business activity from Rural Bank to Sharia Rural Bank as referred to in paragraph (1) are carried out in accordance with the Financial Services Authority Regulation regarding the change of business activity of rural banks to sharia rural financing banks.

CHAPTER IX
REVOCATION OF BUSINESS LICENSE AT THE REQUEST OF SHAREHOLDERS

Article 137
The Financial Services Authority is authorized to revoke the Rural Bank business license at the request of shareholders.

Article 138
(1) Rural Banks may apply for revocation of business license at the request of shareholders as referred to in Article 137 as long as the Rural Bank is not currently determined

under special supervision by the Financial Services Authority in accordance with the Financial Services Authority Regulation regarding the determination of status and follow-up supervision of rural credit banks and sharia people's financing banks. (2) In the event that a BPR designated under intensive supervision applies for the revocation of its business license upon the request of its shareholders, the application must be submitted no later than 6 (six) months before the expiration of the intensive supervision period or its extension.

Article 139
The revocation of the business license upon the request of BPR shareholders as referred to in Article 137 is carried out in 2 (two) stages:
a. approval for the preparation of business license revocation; and b. decision on the revocation of the business license.

Article 140
(1) The BPR submits an application for approval of the preparation of business license revocation as referred to in Article 139 letter a, attached with the requirement documents as listed in Appendix Part U which is an inseparable part of this Financial Services Authority Regulation, including:
a. minutes of the General Meeting of Shareholders containing at least:

the plan to revoke the business license upon the request of the BPR shareholders, including the decision approving the dissolution of the BPR legal entity;
an order to the Board of Directors to settle all obligations of the BPR; and
a commitment to place escrow funds to settle the obligations of the BPR;
b. reasons for revoking the business license upon the request of the BPR shareholders;

c. a plan to settle all obligations of the BPR to customers, creditors, employees, and other parties, accompanied by:

the BPR's cash flow projection for a minimum period of 6 (six) months ahead; and
proof of escrow fund placement in the form of a deposit at a general bank in Indonesia, by stating the name "Commissioners of the Financial Services Authority q.q. name of shareholders and/or BPR PSP", and stating that the withdrawal can only be made after obtaining approval from the Financial Services Authority;
d. the latest financial report, accompanied by the BPR's financial projection calculated from the last period of the report at the time of the application submission until the projected financial position report on the closing date; and e. proof of tax settlement and other obligations to the state. (2) With specific considerations, the Financial Services Authority has the authority to determine a higher escrow fund amount than the escrow fund amount proposed by the BPR as referred to in paragraph (1).

Article 141
(1) The Financial Services Authority processes the application and provides approval or rejection of the application as referred to in Article 140 paragraph (1) within a maximum of 20 (twenty) Working Days since the application along with the required documents are received completely. (2) The time period as referred to in paragraph (1) does not include the time given to the BPR to complete, repair, and/or update the documents required in the submission of the application for approval of the preparation of business license revocation. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts an examination of the fulfillment of requirements including:
a. analysis of the plan to settle all obligations of the BPR; and b. analysis of the cash flow projection as well as the amount of obligations and assets of the BPR.

Article 142
(1) The Financial Services Authority examines the completeness of the requirement documents for the application as referred to in Article 140 paragraph (1).
(2) In the event that based on the examination of the completeness of documents as referred to in paragraph (1) is not yet complete, the Financial Services Authority notifies the BPR to complete the missing documents and resubmit them to the Financial Services Authority no later than 10 (ten) Working Days since the date of notification from the Financial Services Authority. (3) In the event that the BPR does not complete, repair, and/or update the missing documents within the time limit as referred to in paragraph (2), the BPR is deemed to have cancelled the application for approval of the preparation of business license revocation. (4) In the event that the application documents for approval of the preparation of business license revocation submitted are assessed to be complete, the Financial Services Authority notifies the BPR that the documents are complete and the preparation of business license revocation permits begins to run from the date of notification.

Article 143
(1) In conducting the examination of the fulfillment of requirements as referred to in Article 141 paragraph (3), the Financial Services Authority may request additional and/or corrected documents from the BPR. (2) The additional and/or corrected documents as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 20 (twenty) Working Days since the date of notification from the Financial Services Authority. (3) In the event that the BPR does not submit additional and/or corrected documents within the time limit as referred to in paragraph (2), the application for approval of the preparation of business license revocation is rejected.

Article 144
(1) A BPR that has obtained approval for the preparation of business license revocation of the BPR is obligated to:
a. cease all business activities of the BPR, except for the settlement of obligations and assets of the BPR; b. announce the plan to dissolve the BPR legal entity and the plan to settle BPR obligations to the public on the announcement board at all offices of the relevant BPR, local daily newspapers, electronic mass media, and/or the BPR website no later than 10 (ten) Working Days since the date of approval for the preparation of business license revocation of the BPR;
c. settle all obligations of the BPR within a time limit no later than 6 (six) months since the date of approval for the preparation of business license revocation of the BPR; and
d. appoint a public accounting firm to verify the final position report, including ensuring the settlement of all obligations of the BPR.
(2) In the event that:
a. the BPR cannot settle all obligations within the time limit as referred to in paragraph (1) letter c; and/or

b. the BPR experiences a decline in financial condition and meets the criteria established in special supervision, the approval for the preparation of business license revocation that has been granted is declared void and invalid.

Article 145
The BPR submits an application for the decision on the revocation of the BPR business license as referred to in Article 139 letter b after all obligations of the BPR are settled, accompanied by the requirement documents as listed in Appendix Part V which is an inseparable part of this Financial Services Authority Regulation, including:
a. report and proof of implementation of the cessation of BPR business activities; b. proof of announcement regarding the plan to dissolve the legal entity and the plan to settle BPR obligations;
c. report and proof of implementation of the settlement of BPR obligations;
d. report of the audit results of the public accounting firm on the final position report; e. final position report of the BPR; and f. statement letter from the BPR shareholders.

Article 146
(1) The Financial Services Authority examines the completeness of the requirement documents for the application as referred to in Article 145.
(2) In the event that based on the examination of the completeness of documents as referred to in paragraph (1) is not yet complete, the Financial Services Authority notifies the BPR to complete the missing documents and resubmit them to the Financial Services Authority no later than 10 (ten) Working Days since the date of notification from the Financial Services Authority. (3) In the event that the BPR does not complete, repair, and/or update the missing documents within the time limit as referred to in paragraph (2), the BPR is deemed to have cancelled the application for the decision on the revocation of the business license. (4) In the event that the application documents as referred to in Article 145 are assessed to be complete, the Financial Services Authority:
a. notifies the BPR that the documents are complete; b. issues the decision on the revocation of the BPR business license;
c. orders the BPR to dissolve the legal entity in accordance with the provisions of legislation; and
d. orders the BPR to announce the end or dissolution of the legal entity in accordance with the provisions of legislation.
(5) The shareholders of the BPR remain responsible for all obligations of the BPR that have not been settled since the date the business license revocation decision is issued.

Article 147
The status of the BPR legal entity ends or dissolves from the date of the announcement of the end or dissolution of the BPR legal entity in the State Gazette of the Republic of Indonesia.

Article 148
(1) A BPR that does not meet the provisions as referred to in Article 144 paragraph (1) is subject to administrative sanctions in the form of a written reprimand.
(2) In the event that the BPR does not meet the provisions and has been subject to administrative sanctions as referred to in paragraph (1), the BPR may be subject to administrative sanctions in the form of:
a. a downgrade of the BPR health level by one predicate; b. prohibition on expanding business activities and/or office networks;
c. temporary cessation of part of the BPR's operational activities; and/or

d. postponement of the right to receive dividends for shareholders.

CHAPTER X
OTHER PROVISIONS

Article 149
The presentation or exposition by prospective PSP candidates and/or clarification by prospective members of the Board of Directors and/or prospective members of the Board of Commissioners during the assessment of competence and propriety can be conducted face-to-face directly or through information technology media.

Article 150
The Financial Services Authority may establish different policies based on specific considerations regarding the implementation of mechanisms, requirements, and/or time periods related to the institutional arrangement of BPRs other than those regulated in this Financial Services Authority Regulation.

CHAPTER XI
TRANSITIONAL PROVISIONS

Article 151
(1) Principle approvals for the establishment of BPRs that have been granted by the Financial Services Authority before the implementation of this Financial Services Authority Regulation are declared to remain valid. (2) Prospective PSPs who have obtained principle approval as referred to in paragraph (1) may submit an application for a business license to establish a BPR accompanied by requirement documents in accordance with Financial Services Authority Regulation Number 20/POJK.03/2014 concerning Rural Credit Banks. (3) BPRs that have obtained principle approval for the opening of Branch Offices, relocation of head office and/or Branch Office addresses, or change of legal entity form may follow up on the license application in accordance with Financial Services Authority Regulation Number 20/POJK.03/2014 concerning Rural Credit Banks. (4) Plans to open or relocate Cash Office addresses, applications for name changes, and closures of Office Networks that have been submitted to the Financial Services Authority before the implementation of this Financial Services Authority Regulation, but have not yet received confirmation and/or approval from the Financial Services Authority, must meet the provisions in this Financial Services Authority Regulation. (5) BPRs that have obtained approval for the preparation of business license revocation as referred to in Article 139 letter a may follow up on the application by referring to the provisions in Financial Services Authority Regulation Number 20/POJK.03/2014 concerning Rural Credit Banks. (6) Provisions regarding reports as referred to in Article 68 paragraph (4), Article 70 paragraph (1), Article 70 paragraph (2), Article 70 paragraph (3), Article 73 paragraph (2), Article 86 paragraph (2), Article 89 paragraph (2), Article 92 paragraph (2), Article 94, Article 100 paragraph (2), Article 101 paragraph (3), Article 102 paragraph (2), Article 118 paragraph (4), and Article 119 paragraph (3), are submitted offline until 9 (nine) months since the implementation of this Financial Services Authority Regulation. (7) Provisions regarding reporting time limits and sanctions for reports as referred to in paragraph (6) are in accordance with Financial Services Authority Regulation Number 20/POJK.03/2014 concerning Rural Credit Banks.

CHAPTER XII
CLOSING PROVISIONS

Article 152
At the time this Financial Services Authority Regulation comes into force:
a. Financial Services Authority Regulation Number 20/POJK.03/2014 concerning Rural Credit Banks (State Gazette of the Republic of Indonesia Year 2014 Number 351, Supplement to the State Gazette of the Republic of Indonesia Number 5629); b. Circular Letter of the Financial Services Authority Number 16/SEOJK.03/2015 concerning Rural Credit Banks;
c. provisions regarding the office network area of BPRs
as referred to in Chapter III Articles 11 through
Article 19 of Financial Services Authority Regulation Number
12/POJK.03/2016 concerning Business Activities and Office Network Areas of Rural Credit Banks Based on Core Capital (State Gazette of the Republic of Indonesia Year 2016 Number 34, Supplement to the State Gazette of the Republic of Indonesia Number 5849); d. Bank Indonesia Regulation Number 10/9/PBI/2008 concerning Change of Business License of General Banks to Business License of Rural Credit Banks in the Context of Consolidation (State Gazette of the Republic of Indonesia Year 2008 Number 35, Supplement to the State Gazette of the Republic of Indonesia Number 4823); and e. Bank Indonesia Circular Letter Number 12/36/DPNP concerning Change of Business License of General Banks to Business License of Rural Credit Banks Mandatorily in the Context of Consolidation, are revoked and declared invalid.

Article 153
The provisions of Article 69 paragraph (3), Article 72 paragraph (1), Article 74 paragraph (1), Article 110 paragraph (3), and Article 113 paragraph (3) regarding online reporting through the Financial Services Authority reporting system shall apply after 9 (nine) months calculated from the date of promulgation of this Financial Services Authority Regulation.

Article 154
This Financial Services Authority Regulation comes into force on the date of promulgation.

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

In order for everyone to know it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Determined in Jakarta on December 16, 2020
CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Promulgated in Jakarta on December 18, 2020
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2020 NUMBER 293

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 62 /POJK.03/2020
CONCERNING
RURAL CREDIT BANKS

I. GENERAL
To encourage the sustainable growth of the national economy, it is necessary to formulate regulations and policies that enhance the creation of a strong, healthy, and competitive national banking industry, including BPRs, capable of serving the community, especially micro and small businesses. In line with the goal of enhancing the role and function of the national banking industry as a whole to create financial system stability, the institutional framework of the BPR industry needs to be strengthened, among others through strengthening capital from the initial establishment in line with efforts to create industry consolidation. Increasing the role of BPR owners through institutional arrangement and commitment is also needed to maintain BPR business continuity. Increasing the role of management and strengthening office networks amidst high technology utilization is expected to provide services with a direct approach to the community. In addition, the refinement of the mechanism for revoking BPR business licenses upon shareholder request is necessary to provide certainty for the settlement of obligations to customers and the community regarding consumer protection efforts. All these efforts can be realized well through the refinement of requirements and procedures, as well as improvements in the mechanisms and stages of BPR institutional licensing. Implementation of existing regulations needs to be refined to realize an increase in the competitiveness and contribution of BPRs to the regional economy and the national banking industry. Based on the above, it is necessary to update Financial Services Authority Regulation Number 20/POJK.03/2014 concerning Rural Credit Banks.

II. ARTICLE BY ARTICLE
Article 1
Quite clear.

Article 2
Quite clear.

Article 3
Paragraph (1)
Letter a
Quite clear.
Letter b
What is meant by "Indonesian legal entity" is an Indonesian legal entity recorded in the ministry that handles government affairs in the field of law and human rights and/or regulated based on provisions of legislation as a legal entity. Letter c What is meant by "local government" is provincial local government, regency local government, and/or city local government in accordance with the Law on local government. Paragraph (2) As one of the requirement documents, prospective PSPs with legal entity status submit the latest financial report within a time period in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for principal parties of financial service institutions, before the date of the application letter. Paragraph (3) What is meant by "specific considerations" is based on factors such as the economic and sociological conditions of certain areas as well as the continuity of BPR business.

Article 4
Paragraph (1)
Quite clear.
Paragraph (2)
In adjusting the form of the legal entity of regional companies, BPRs pay attention to the provisions of legislation regarding the time limit for adjusting the legal entity of regional companies.

Article 5
Paragraph (1)
Letter a
Changes to PSP include:

Replacement of PSP; and/or
Addition of PSP.
Letter b
Quite clear.
Letter c
Quite clear.
Paragraph (2)
Quite clear.

Article 6
Paragraph (1)
Paid-up capital for BPRs in the form of a Cooperative legal entity is the principal savings and mandatory savings in accordance with the Law on cooperatives.
Paragraph (2)
The determination of a higher paid-up capital amount is based on considerations, among others:
a. different regional economic developments within the same zone group; b. changes in the number and performance of financial service institutions;
c. continuity of BPR business development in the future which impacts changes in operational cost requirements; and/or
d. alignment with central and/or local government policies.
Paragraph (3)
What is meant by "working capital" is all current assets including cash, loans granted, interbank fund placements, and securities, but excluding establishment and pre-operational costs of the BPR. Fulfillment of the working capital usage percentage of 50% (fifty percent) is aimed at the initial establishment of the BPR. Paragraph (4) Zone 1 indicates a zone with the highest economic potential and the tightest level of competition among financial service institutions, while Zone 3 indicates a zone with the lowest economic potential and the loosest level of competition among financial service institutions.

Article 7
Paragraph (1)
Deposit receipts that cannot contain information regarding the purpose of opening the deposit and approval of deposit withdrawal are supplemented with a separate letter containing information regarding the purpose of opening the deposit and the purpose of withdrawal, signed by an authorized official of a general bank or another BPR at the bank where the deposit is placed. Paragraph (2) Example:
A prospective PSP intending to establish a BPR in Zone 3 with a paid-up capital requirement of Rp25,000,000,000.00 (twenty-five billion rupiah) must place the paid-up capital in the form of a deposit amounting to Rp25,000,000,000.00 (twenty-five billion rupiah) at the time of submitting the application for principle approval for the establishment of the BPR.

Article 8
Quite clear.

Article 9
Letter a
What is meant by "principle approval" is approval to conduct establishment preparation.
Letter b
What is meant by "business license" is a license granted to conduct BPR business activities after establishment preparation is completed.

Article 10
Paragraph (1)
Submission to the Financial Services Authority is addressed to the Executive Head of Banking Supervision u.p. Head of the Licensing and Banking Information Department with a copy to the Head of the Regional Financial Services Authority or Head of the Financial Services Authority according to the location of the BPR's domicile. Paragraph (2) Letter a Quite clear. Letter b Ownership data for BPRs with legal entity status:

Limited Liability Company, public regional company, or regional joint-stock company, namely a list of prospective shareholders along with details of each share ownership amount; or
Cooperative, namely a list of prospective members along with details of principal savings and mandatory savings amounts.
Letter c
Quite clear.

Letter d
Plans for organizational structure and human resource composition include, among others, organizational charts, horizontal and vertical responsibility lines, and job levels from the lowest to Executive Officials. Organizational structures and human resource compositions are arranged in accordance with, among others, Financial Services Authority Regulations regarding the application of corporate governance for rural credit banks, risk management application for rural credit banks, and information technology service standards for rural credit banks and sharia people's financing banks. Letter e Quite clear. Letter f Quite clear. Letter g Proof of capital deposit accompanied by information for the establishment of the relevant BPR and its withdrawal can only be made after obtaining approval from the Financial Services Authority. Letter h Quite clear. Letter i What is meant by "financial report" is the latest financial report within a period of 1 (one) year prior to the application submission that has been audited by a public accountant and/or submitted to the supervisor. Lists and financial reports of BPRs and/or other financial service institutions owned by prospective PSPs that show that the BPR and/or other financial service institutions owned by the prospective PSP:

are not in a loss condition, i.e., not in a condition reflecting a tendency of increasing losses experienced by the company both in the current year and cumulatively in previous years caused by structural problems or the company's main business activities; and
have healthy capital, liquidity, and profitability ratios referring to the assessment standards applicable to each financial service institution.
Letter j
Quite clear.
Paragraph (3)
Quite clear.

Article 11
Paragraph (1)
Quite clear.
Paragraph (2)
Quite clear.
Paragraph (3)
Letter a
Quite clear.
Letter b
Quite clear.
Letter c
Quite clear.
Letter d
What is meant by "examination of financial performance and fulfillment of provisions at BPRs and/or other financial service institutions owned by prospective PSPs" includes, among others:

not in a loss condition, i.e., not in a condition reflecting a tendency of increasing losses experienced by the company both in the current year and cumulatively in previous years caused by structural problems or the company's main business activities;
having healthy capital, liquidity, and profitability ratios referring to the assessment standards applicable to each financial service institution; and
does not have violations of regulations that cause the Rural Bank and/or other financial service institutions to potentially incur losses based on regulations governing each financial service institution.

Paragraph (4)
The Rural Bank development plan and strategy explained in the presentation or exposition, including:
a. the purpose and reasons for the establishment of the Rural Bank; b. analysis of potential and feasibility; and
c. sources of funds and financial capacity to maintain the solvency and growth of the Rural Bank.

Article 12
Paragraph (1)
What is meant by "research on the completeness of requirement documents" is conducting research according to the checklist, including the latest information from the list of failed parties, the list of suspected terrorists and terrorist organizations, the list of proliferation financing of weapons of mass destruction, and the list of non-performing loans from shareholders, Principal Shareholders (PSP), members of the Board of Directors, and members of the Board of Commissioners.

Paragraph (2)
Notification can be done electronically or in writing.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Article 13
Sufficiently clear.

Article 14
Paragraph (1)
Example:
If the principle approval is granted on December 1, 2020, then the validity period of the principle approval ends on November 30, 2021.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Article 15
Submission to the Financial Services Authority is addressed to the Head of Executive Supervisor of Banking u.p. Head of Licensing and Banking Information Department with a copy to the Head of Regional Financial Services Authority or Head of Financial Services Authority according to the location of the Rural Bank's domicile.

Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
Sufficiently clear.

Letter d
Organizational structure and human resource composition include, among others, organizational charts, horizontal and vertical lines of responsibility, and job levels from the lowest to the Executive Officer level. The organizational structure and human resource composition are prepared by referring to, among others, Financial Services Authority Regulations regarding the implementation of corporate governance for rural banks, risk management implementation for rural banks, and standards for information technology implementation for rural banks and Islamic rural financing institutions.

Letter e
Number 1
Readiness regarding electronic systems and information technology in accordance with Financial Services Authority Regulations regarding standards for information technology implementation for rural banks and Islamic rural financing institutions.

Number 2
What is meant by "fixed assets and inventory" are tangible assets obtained in ready-to-use form or built beforehand, which are used in operational activities and are not intended for sale. The list of fixed assets and inventory is accompanied by acquisition prices.

Number 3
What is meant by "proof of control of the office building" includes, among others, proof of ownership or office building lease agreements supported by proof of ownership from the lessor or office building loan or use agreements.

Number 4
Sufficiently clear.

Number 5
Sufficiently clear.

Number 6
Sufficiently clear.

Number 7
Sufficiently clear.

Letter f
What is meant by "financial reports" are the latest financial reports within the last 1 (one) year before the application submission which have been audited by a public accountant and/or submitted to the supervisor. The list and financial reports of the Rural Bank and/or other financial service institutions owned by the prospective Principal Shareholder (PSP) of the Rural Bank which show that the Rural Bank and/or other financial service institutions owned by the prospective PSP of the Rural Bank:

are not in a loss state, meaning not in a condition reflecting a tendency of increasing losses experienced by the company, both in the current year and cumulatively in previous years, caused by structural problems or the company's main business activities; and
have healthy capital, liquidity, and profitability ratios referring to the applicable assessment standards for each financial service institution.

Article 16
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
What is meant by "research on financial performance and compliance with regulations on the Rural Bank and/or other financial service institutions owned by the prospective Principal Shareholder (PSP)" includes, among others:

not in a loss state, meaning not in a condition reflecting a tendency of increasing losses experienced by the company, both in the current year and cumulatively in previous years, caused by structural problems or the company's main business activities;
having healthy capital, liquidity, and profitability ratios referring to the applicable assessment standards for each financial service institution; and
not having violations of regulations that cause the Rural Bank and/or other financial service institutions to potentially incur losses based on regulations governing each financial service institution.

Article 17
Sufficiently clear.

Article 18
Sufficiently clear.

Article 19
Paragraph (1)
Sufficiently clear.

Paragraph (2)
What is meant by "fund collection and disbursement" is conducting:
a. fund collection originating from the public and/or the owner of the Rural Bank or related parties; and b. fund disbursement to the public other than the owner of the Rural Bank and/or related parties.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Letter a
Compliance with the inactive business activity criteria is shown in the Rural Bank's financial reports in accordance with Financial Services Authority Regulations regarding reporting for rural banks and Islamic rural financing institutions through the Financial Services Authority reporting system.

Letter b
Sufficiently clear.

Article 20
The word "Bank" in front of the Rural Bank's name, the legal form, and the phrase "Rural Bank" or abbreviated as "Rural Bank" must be clearly stated, including on nameplates, letterheads, public media used, savings books, deposit certificates, and accounting documents. Example:
a. Bank Cahaya Sejahtera Sentosa
PT Rural Bank Cahaya Sejahtera Sentosa b. Bank Cahaya Cahaya Sejahtera Sentosa Rural Bank Cooperative.

Article 21
Paragraph (1)
Sufficiently clear.

Paragraph (2)
What is meant by "simultaneously" is the revocation of the Business License for the General Bank (BUK) is carried out on the same date as the granting of the Business License for the Rural Bank.

Paragraph (3)
Example:
A General Bank (BUK) that obtains a business license as a Rural Bank on January 2, 2023, must adjust all forms and business activities to become a Rural Bank no later than January 1, 2024. During the transition period, the Rural Bank resulting from the business license change must state the General Bank's name before the business license change after writing the Rural Bank's name. Example:
PT Rural Bank Cahaya Sejahtera Sentosa
(formerly PT Bank Cahaya Sejahtera Sentosa)

Paragraph (4)
In setting different time limits, the Financial Services Authority considers, among others, the level of complexity of the process of ending the form and business activities of the General Bank (BUK) which are not permitted for the Rural Bank and/or adjusting the type and network area of offices, as well as the realization of the implementation of the action plan carried out and submitted by the General Bank (BUK) to the Financial Services Authority.

Article 22
Submission to the Financial Services Authority is addressed to the Head of Executive Supervisor of Banking u.p. Head of Licensing and Banking Information Department with a copy to the Head of Bank Supervision Department, Head of Regional Financial Services Authority, or Head of Financial Services Authority according to the location of the General Bank's (BUK) domicile.

Letter a
Number 1
Sufficiently clear.

Number 2
Sufficiently clear.

Number 3
The submitted list of shareholders is the list of shareholders stated in the latest articles of association before the application submission.

Letter a)
Sufficiently clear.

Letter b)
Number 1)
For shareholders of the General Bank (BUK) owned by the local government, the letter of statement is made by the head of the region.

Number 2)
The last Principal Shareholder (PSP) (ultimate shareholders) are individual persons or legal entities that directly or indirectly own shares of the Rural Bank and are the ultimate controllers of the entire business group structure controlling the Rural Bank. The letter of statement is made by the party who, in the opinion of the Financial Services Authority, controls directly or indirectly over the entire business group.

Number 3)
Sufficiently clear.

Number 4
Sufficiently clear.

Number 5
The organizational structure and human resource composition plan include, among others, organizational charts, horizontal and vertical lines of responsibility, and job levels from the lowest to the Executive Officer level. The organizational structure and human resource composition are prepared by referring to, among others, Financial Services Authority Regulations regarding the implementation of corporate governance for rural banks, risk management implementation for rural banks, and standards for information technology implementation for rural banks and Islamic rural financing institutions.

Number 6
What is meant by "business plan as a Rural Bank" is a plan describing the direction of policy and strategic steps for business development as a Rural Bank, which is submitted together with the requirement documents. The scope of the business plan prepared is in accordance with Financial Services Authority Regulations regarding the business plan for rural banks and Islamic rural financing institutions.

Number 7
Infrastructure readiness plans include, among others, preparation for changes in systems and work procedures, electronic systems, and information technology.

Number 8
Operational readiness plans cover at least the list of fixed assets and inventory, proof of office readiness and supporting equipment, including forms or documents to be used for Rural Bank operations.

Number 9
What is meant by "latest financial report" is the financial report of the last month before the application for business license change from General Bank (BUK) to Rural Bank.
Financial reports and other reports are prepared by referring to accounting standards or guidelines and regulations including those governing reporting for general banks through the Financial Services Authority reporting system and reporting for rural banks through the Financial Services Authority reporting system.

Number 10
The announcement of the business license change plan is conducted through:
a. a notification letter to all customers, containing at least:

information and consequences of the business license change from General Bank (BUK) to Rural Bank; and
the mechanism for settling General Bank (BUK) customer funds in case customers are unwilling to become Rural Bank customers.
b. written announcements at all office networks in strategic places;
c. newspapers with national and provincial distribution in the location of the General Bank's (BUK) office network; and
d. announcements through online media including websites and/or social media of the General Bank (BUK).

Letter b
Number 1
The draft deed of amendment of the articles of association includes, among others, matters that have changed, such as:
a. the name asserting the change from General Bank (BUK) to Rural Bank and the domicile, for example PT Bank "A" becomes PT Rural Bank "A"; and b. the assertion regarding the change in business activities and business license from General Bank (BUK) to Rural Bank. The change of status from a public company to a closed company involves, among others, the consequences of:
a. changing status; and b. buying back shares or appointing a controller or other parties to make a tender offer to public shareholders, in accordance with applicable legislation.

Number 2
Sufficiently clear.

Number 3
Sufficiently clear.

Article 23
Sufficiently clear.

Article 24
Sufficiently clear.

Article 25
Sufficiently clear.

Article 26
Sufficiently clear.

Article 27
Paragraph (1)
Letter a
The action plan regarding the change of status from a public company to a closed company is carried out in accordance with legislation in the capital market sector.

Letter b
Sufficiently clear.

Letter c
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Article 28
Sufficiently clear.

Article 29
Paragraph (1)
The announcement of the business license change is conducted through:
a. written announcements at all office networks in strategic places; b. newspapers with national and provincial distribution in the location of the office network of the Rural Bank resulting from the business license change from the General Bank (BUK); and
c. online media including websites and/or social media of the Rural Bank resulting from the business license change from the General Bank (BUK).

Paragraph (2)
Sufficiently clear.

Article 30
Paragraph (1)
Letter a
Including giro savings and related giralization activities, including:

giro transactions;
General Bank (BUK) giro accounts at Bank Indonesia; and/or
membership through Bank Indonesia Real Time Gross Settlement, Bank Indonesia Scripless Securities Settlement System, and Bank Indonesia National Clearing System.

Letter b
Business activities in foreign currency include:

fund collection;
fund disbursement, including fund disbursement and placement in other banks;
trade finance such as letters of credit and foreign currency bank guarantees; and/or
treasury.

Letter c
Sufficiently clear.

Letter d
What is meant by "ownership of securities" does not include Bank Indonesia Certificates.

Letter e
Sufficiently clear.

Letter f
What is meant by "other business activities not permitted for Rural Banks" includes, among others, the issuance of Domestic Documentary Credits, bank guarantees, and business activities regulated by other authorities.

Paragraph (2)
What is meant by "settling the remaining General Bank (BUK) portfolio" is not conducting new transactions or providing products and/or conducting business activities as a General Bank (BUK).

Paragraph (3)
Sufficiently clear.

Article 31
Sufficiently clear.

Article 32
Sufficiently clear.

Article 33
Sufficiently clear.

Article 34
Paragraph (1)
Copies of the Financial Services Authority decision are copied to interested parties, including:
a. Bank Indonesia; and b. Deposit Insurance Agency.

Paragraph (2)
Sufficiently clear.

Article 35
Sufficiently clear.

Article 36
Sufficiently clear.

Article 37
The word "Bank" in front of the name of the Rural Bank resulting from the business license change from the General Bank (BUK), the legal form, and the phrase "Rural Bank" or abbreviated as "Rural Bank" must be clearly stated, including on nameplates, letterheads, public media used, savings books, deposit certificates, and accounting documents. Example:
c. Bank Cahaya Sejahtera Sentosa
PT Rural Bank Cahaya Sejahtera Sentosa d. Bank Cahaya Cahaya Sejahtera Sentosa Rural Bank Cooperative

Article 38
Sufficiently clear.

Article 39
Sufficiently clear.

Article 40
Sufficiently clear.

Article 41
Sufficiently clear.

Article 42
Paragraph (1)
Letter a
What is meant by "net own capital" for:

limited liability companies, regional public enterprises, or regional state-owned enterprises is the sum of paid-up capital, reserves, and profit minus participations and losses;
cooperative legal entities is the sum of principal savings, mandatory savings, reserve funds, and grants minus participations and losses.
Participations carried out by the legal entity owner of the Rural Bank are investments of funds in the form of shares or other forms proving ownership, either in rupiah or foreign currency, in a business entity for long-term investment purposes and not intended for resale. Such participations can be carried out directly or through the capital market.

Letter b
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Article 43
Sufficiently clear.

Article 44
Sufficiently clear.

Article 45
Paragraph (1)
What is meant by "owner" is the shareholder, Principal Shareholder (PSP), and ultimate Principal Shareholder (PSP) of the legal entity owner of the Rural Bank.

Letter a
What is meant by "having good character and morality" is shown by:

attitude of complying with applicable regulations, including never being punished for proven criminal acts in accordance with Financial Services Authority Regulations regarding the assessment of competence and propriety for principal parties of financial service institutions; and
not being subject to criminal sanctions that have acquired permanent legal force.

Letter b
Sufficiently clear.

Letter c
Sufficiently clear.

Letter d
Sufficiently clear.

Letter e
What is meant by "list of failed parties" is a list managed by the Financial Services Authority containing parties prohibited from becoming principal parties based on Financial Services Authority Regulations regarding the reassessment of principal parties of financial service institutions.

Letter f
Sufficiently clear.

Letter g
Sufficiently clear.

Letter h
Sufficiently clear.

Letter i
Sufficiently clear.

Paragraph (2)
Information regarding shareholders is obtained by the Financial Services Authority from various sources, including:
a. research or examination; b. court decisions; and/or
c. other sources whose truthfulness can be verified.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Sufficiently clear.

Article 46
Sufficiently clear.

Article 47
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Dividends for Rural Banks in the form of cooperative legal entities consist of surplus results distributed to members.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Article 48
Sufficiently clear.

Article 49
Sufficiently clear.

Article 50
Sufficiently clear.

Article 51
Paragraph (1)
The 60 (sixty) Working Days period includes cases where the General Meeting of Shareholders (GMS) must be held with a second or third GMS.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Sufficiently clear.

Paragraph (7)
Sufficiently clear.

Paragraph (8)
Sufficiently clear.

Article 52
Sufficiently clear.

Article 53
Sufficiently clear.

Article 54
Sufficiently clear.

Article 55
Sufficiently clear.

Article 56
Sufficiently clear.

Article 57
Paragraph (1)
Including changes in share ownership that do not result in a change of Principal Shareholder (PSP) are changes in share ownership whether they result in or do not result in the replacement and/or addition of shareholders.

Paragraph (2)
Sufficiently clear.

Article 58
Sufficiently clear.

Article 59
Sufficiently clear.

Article 60
Sufficiently clear.

Article 61
Sufficiently clear.

Article 62
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Including within one province is the Special Capital Region of Jakarta, Bogor Regency or City, Depok City, Tangerang Regency or City, South Tangerang City, Bekasi Regency or City, and Karawang Regency.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Letter a
What is meant by "knowledge in the banking field" includes, among others, knowledge of banking regulations and operational implementation including Rural Banks, including understanding of risk management.

Letter b
What is meant by "experience and expertise in the banking and/or financial field" includes, among others, experience and expertise in operational, marketing including funding and lending, accounting, audit, information technology and digital, economic or banking law, or experience and expertise in the supervision of financial service institutions.

Letter c
What is meant by "ability to conduct strategic management" includes, among others, the ability to anticipate and analyze economic developments and information technology innovations, the ability to explore the potential of regional banking and finance, interpret the vision and mission of the Rural Bank, and analyze the banking and financial industry situation.

Paragraph (6)
Sufficiently clear.

Article 63
What is meant by "professional certification institution" is an institution conducting work competency certification that has obtained a license from the National Professional Certification Agency. The implementation of the certification program is in accordance with Financial Services Authority Regulations regarding work competency certification for members of the Board of Directors and members of the Board of Commissioners of rural banks and Islamic rural financing institutions.

Article 64
Paragraph (1)
What is meant by "majority" is more than 50% (fifty percent) of the total number of Board of Directors members.
What is meant by "family or in-law relationship up to the second degree" is a relationship both vertical and horizontal, including parents-in-law, children-in-law, and siblings-in-law, including:
a. biological/step/adopted parents; b. biological/step/adopted siblings including their husbands or wives;
c. biological/step/adopted children;
d. biological/step/adopted grandparents; e. biological/step/adopted grandchildren; f. husband/wife; g. parents-in-law; h. siblings-in-law;
i. husband/wife of biological/step/adopted children;
j. grandparents of husband/wife; k. husband/wife of biological/step/adopted grandchildren;
l. biological/step/adopted siblings of husband/wife including their husbands or wives.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
What is meant by "other institutions" includes, among others, political parties or social organizations.

Paragraph (4)
Sufficiently clear.

Article 65
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Letter a
Sufficiently clear.

Letter b
What is meant by "experience in the banking and/or financial field" includes, among others, experience in marketing, accounting, audit, funding, lending, information technology and digital, economic or banking law, or supervision of financial service institutions.

Paragraph (5)
The implementation of the certification program is in accordance with Financial Services Authority Regulations regarding work competency certification for members of the Board of Directors and members of the Board of Commissioners of rural banks and Islamic rural financing institutions.

Paragraph (6)
Sufficiently clear.

Paragraph (7)
Sufficiently clear.

Paragraph (8)
Members of the Board of Commissioners can serve as Commissioners for a maximum of 3 (three) Rural Banks or Islamic Rural Banks.

Paragraph (9)
Sufficiently clear.

Paragraph (10)
Board of Commissioners meetings are indicated by meeting minutes and are intended as supervision over the implementation of the duties and responsibilities of the Board of Directors.

Paragraph (11)
Sufficiently clear.

Article 66
Paragraph (1)
What is meant by "majority" is more than 50% (fifty percent) of the total number of Board of Commissioners members.

Paragraph (2)
Sufficiently clear.

Article 67
Sufficiently clear.

Article 68
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Submission of reports through the Financial Services Authority reporting system is conducted in the monthly reports of the Rural Bank in accordance with Financial Services Authority Regulations regarding reporting for rural banks and Islamic rural financing institutions through the Financial Services Authority reporting system.

Article 69
Paragraph (1)
Sufficiently clear.

Paragraph (2)
What is meant by "serving" is carrying out actions, duties, and functions as a member of the Board of Directors and/or member of the Board of Commissioners, including representing the Rural Bank in making decisions that legally bind the Rural Bank and/or taking important decisions that affect the financial condition of the Rural Bank.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Article 70
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Prohibitions on becoming members of the Board of Directors and/or members of the Board of Commissioners include, among others:
a. violations of regulations regarding members of the Board of Directors and/or members of the Board of Commissioners including among others dual positions, family or in-law relationships, requirements for work competency certificates; or b. determination of failed status in accordance with Financial Services Authority Regulations regarding the reassessment of principal parties of financial service institutions.

Article 71
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
The minimum limit is the minimum limit as referred to in the Law on Limited Liability Companies and

Financial Services Authority Regulation on the Implementation of Good Corporate Governance for Rural Banks.

Article 72
Paragraph (1)
Change of position of members of the Board of Directors and/or members of the Board of Commissioners, namely a change of position that does not meet the criteria for implementing the assessment of competence and propriety.

Paragraph (2)
The submission offline includes submission in the form of hardcopy and softcopy copies via official email.

Paragraph (3)
It is clear enough.

Article 73
It is clear enough.

Article 74
Paragraph (1)
Executive Officials include, among others, branch office leaders, division heads, section heads, managers, officials designated and responsible for the implementation of risk management, compliance, or internal audit functions, and/or other equivalent officials. Those required to be reported are officials who are part of the BPR organizational structure, whether they have been appointed or not appointed as Executive Officials by the BPR but have carried out tasks and functions as Executive Officials. "Change" includes, among others, job transfers. "Dismissal" includes the resignation of Executive Officials, dismissal by the BPR, or dismissal as a result of the Financial Services Authority's determination of a "fail" predicate.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Article 75
Paragraph (1)
Investigation includes searching for information regarding Executive Officials, including:
a. being included in the fail list in accordance with the Financial Services Authority Regulation regarding re-assessment for main parties of financial service institutions; b. having non-performing loans and/or non-performing financing; and/or
c. being recorded in negative data and information owned by the Financial Services Authority resulting from the Financial Services Authority's supervision or other sources.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Article 76
It is clear enough.

Article 77
It is clear enough.

Article 78
Paragraph (1)
The opening of a Branch Network is the opening of a BPR Branch Network, including the opening of offices resulting from address relocation or change of status of a BPR office.
"Meeting the minimum core capital of BPR" includes BPRs that meet the stages of meeting the minimum core capital in accordance with the Financial Services Authority Regulation regarding the obligation to provide minimum capital and meeting the minimum core capital of rural banks.

Paragraph (2)
Letter a
It is clear enough.

Letter b
"Certain considerations" include, among others:

the BPR headquarters is located on the border of another province, so it has close proximity to that other province, which is based on, among others, the ability to control range and regional typology; or
having a market supported by potential customers.

Paragraph (3)
The BPR's capital ability is measured based on the minimum capital adequacy ratio, which is assessed to be able to absorb the possibility of losses or not endanger the BPR's financial performance. Business needs are measured based on the feasibility and potential of the market and customers that can be served.

Article 79
It is clear enough.

Article 80
It is clear enough.

Article 81
Paragraph (1)
It is clear enough.

Paragraph (2)
Letter a
In the business plan, the number and region or location of Branch Offices to be opened are stated.

Letter b
"Financial conditions" include, among others, ratios or key financial indicators related to:

capital;
quality of productive assets;
liquidity; and
profitability.

Letter c
"Violation of regulations related to BPR" means the BPR is not currently subject to sanctions in the form of a ban on opening a Branch Network and temporary cessation of part of the BPR's business activities.

Letter d
Adequate information technology consists of at least a core banking application, particularly in terms of network reliability and security, and diversity of menus or features that can support daily banking transaction or service processes, including updating transactions to financial records electronically and integrated or consolidated for the entire BPR Branch Network. Adequate information technology in accordance with the Financial Services Authority Regulation regarding information technology service standards for rural banks and sharia rural financing banks.

Letter e
It is clear enough.

Letter f
It is clear enough.

Article 82
It is clear enough.

Article 83
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
Letter a
Number 1
It is clear enough.

Number 2
In analyzing evidence of operational readiness for the opening of a Branch Office, the Financial Services Authority can conduct examinations to ensure the operational readiness of the Branch Office.

Letter b
It is clear enough.

Article 84
It is clear enough.

Article 85
It is clear enough.

Article 86
It is clear enough.

Article 87
Paragraph (1)
"Head Office" means the headquarters or Branch Office that serves as the parent of a Cash Office.

Paragraph (2)
"Certain considerations" include, among others:
a. ability to control range; b. expansion of financial access for the community;
c. efforts to distribute development in regions; and
d. development of the Head Office's business activities so that the BPR can develop and operate sustainably.

Article 88
Paragraph (1)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
Other activities to support the function of the Cash Office include activities with a technological support component for customer service activities.

Paragraph (2)
It is clear enough.

Article 89
It is clear enough.

Article 90
Paragraph (1)
It is clear enough.

Paragraph (2)
The implementation of Mobile Cash is carried out, among others, using mobile cash, floating cash, or non-permanent BPR counters, excluding promotional activities.

Paragraph (3)
Agreements with other parties can include agreements regarding the payment of electricity, telephone, and/or water bills.

Article 91
It is clear enough.

Article 92
It is clear enough.

Article 93
"Financial reports" refer to reports related to transactions conducted by Cash Offices, Mobile Cash, and Payment Points in accordance with this Financial Services Authority Regulation.

Article 94
It is clear enough.

Article 95
It is clear enough.

Article 96
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
Announcement boards are placed in places that are easy to see and read by the public.
Local daily newspapers are newspapers that have circulation in the region where the BPR is located.

Article 97
It is clear enough.

Article 98
It is clear enough.

Article 99
It is clear enough.

Article 100
It is clear enough.

Article 101
It is clear enough.

Article 102
It is clear enough.

Article 103
Paragraph (1)
Operating days and hours are the days and hours of work established by the BPR to conduct business activities and provide services to the community.

Paragraph (2)
National holidays are holidays referring to government decisions regarding national holidays and joint leave.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Article 104
Paragraph (1)
Temporary closure means the temporary cessation of service activities at the BPR office.
Specific reasons include, among others, regional holidays that are optional or BPR office activities that require temporary closure.

Paragraph (2)
"Calendar year" means a year based on the calendar (starting from January 1 and ending on December 31).

Paragraph (3)
To expand the reach of announcements, in addition to making announcements through announcement boards, the BPR can announce the date of temporary office closure outside of official holidays, among others, in local daily newspapers, electronic mass media, and/or the BPR's website.

Paragraph (4)
Evidence of announcement includes, among others, a photocopy of the announcement posted at the BPR office or a newspaper clipping containing the announcement.

Paragraph (5)
It is clear enough.

Article 105
It is clear enough.

Article 106
It is clear enough.

Article 107
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
Letter a
Number 1
It is clear enough.

Number 2
In analyzing evidence of operational readiness for the upgrade of a Cash Office status to a Branch Office, the Financial Services Authority can conduct examinations to ensure the operational readiness of the Branch Office.

Letter b
It is clear enough.

Article 108
It is clear enough.

Article 109
It is clear enough.

Article 110
It is clear enough.

Article 111
Paragraph (1)
Letter a
It is clear enough.

Letter b
Settlement of bills includes, among others, the management of credit accounts and credit documents or administration.
Settlement of bills to customers and other parties can be carried out, among others, by transferring bills to another BPR Branch Office with the consent of the customer or other party.

Letter c
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Article 112
It is clear enough.

Article 113
Paragraph (1)
It is clear enough.

Paragraph (2)
To expand the reach of announcements, in addition to making announcements through announcement boards, the BPR can announce the downgrade of a Branch Office status to a Cash Office, among others, in local daily newspapers, electronic mass media, and/or the BPR's website.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Article 114
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
Settlement of all obligations to customers and other parties can be carried out, among others, by transferring all obligations to another office of the BPR or another party with the consent of the customer or other party. Documents settling all obligations to customers consist of the Branch Office's balance sheet showing that all obligations of the Branch Office to customers and other parties have been settled.

Letter d
Evidence of settlement can be in the form of proof of sale, withdrawal, or transfer of assets from the closed Branch Office.

Letter e
It is clear enough.

Letter f
It is clear enough.

Article 115
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
In order to conduct investigations regarding the fulfillment of requirements for the closure of a Branch Office, the Financial Services Authority can conduct examinations.

Article 116
It is clear enough.

Article 117
It is clear enough.

Article 118
Paragraph (1)
It is clear enough.

Paragraph (2)
To expand the reach of announcements, in addition to making announcements through announcement boards, the BPR can announce the closure of a Branch Office, among others, in local daily newspapers, electronic mass media, and/or the BPR's website.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Article 119
Paragraph (1)
It is clear enough.

Paragraph (2)
To expand the reach of announcements, in addition to making announcements through announcement boards, the BPR can announce the plan to close a Cash Office and Cash Service Activities, among others, in local daily newspapers, electronic mass media, and/or the BPR's website. Local daily newspapers are newspapers that have circulation in the region where the BPR is located.

Paragraph (3)
It is clear enough.

Article 120
Paragraph (1)
Force majeure is a state of unavoidable disaster consisting of:
a. natural disasters; b. non-natural disasters; and/or
c. social disasters,
which are approved by the competent official of the local government and/or can be verified by the Financial Services Authority.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Article 121
It is clear enough.

Article 122
It is clear enough.

Article 123
It is clear enough.

Article 124
Paragraph (1)
Regulatory provisions include, among others, the Law on Limited Liability Companies and the Law on Cooperatives.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Article 125
It is clear enough.

Article 126
It is clear enough.

Article 127
Paragraph (1)
Regulatory provisions include, among others, the Law on Limited Liability Companies and the Law on Cooperatives.
Included in the change of legal form is the change of the legal form of a regional company into a regional public company or a regional joint-stock company.

Paragraph (2)
It is clear enough.

Paragraph (3)
Letter a
"Principle approval" means approval to carry out preparations for the change of the BPR's legal form.

Letter b
"Approval of transfer of business license" means the issuance of a decision to transfer the business license from the old legal entity to the new legal entity.

Article 128
Paragraph (1)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
Supporting documents are:

a list of prospective shareholders including details of each share ownership, for BPRs with the legal form of a Limited Liability Company, regional public company, or regional joint-stock company; or
a list of prospective members including details of the amount of basic deposits and mandatory deposits, for BPRs with the legal form of a Cooperative.

Letter f
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Article 129
It is clear enough.

Article 130
It is clear enough.

Article 131
It is clear enough.

Article 132
It is clear enough.

Article 133
It is clear enough.

Article 134
Paragraph (1)
Letter a
The implementation of the transfer of all rights and obligations is proven by a notarial deed.

Letter b
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Article 135
It is clear enough.

Article 136
It is clear enough.

Article 137
It is clear enough.

Article 138
It is clear enough.

Article 139
It is clear enough.

Article 140
Paragraph (1)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
Other parties include, among others, parties that cooperate or have agreements with the BPR and have claims against the BPR.
The amount of funds placed in escrow is at least equal to the difference between the amount of assets and the amount of liabilities, taking into account cash flow projections for a period of at least 6 (six) months.

Letter d
It is clear enough.

Letter e
"Other obligations to the state" include, among others, Financial Services Authority levies, Deposit Insurance Corporation premiums, or other obligations such as administrative sanctions in the form of fines, either to the Financial Services Authority or the Deposit Insurance Corporation.

Paragraph (2)
The determination of a higher escrow fund amount is based on the Financial Services Authority's analysis of the BPR's projected asset cash inflows with total liabilities, to ensure the settlement of obligations by the BPR.

Article 141
It is clear enough.

Article 142
It is clear enough.

Article 143
It is clear enough.

Article 144
Paragraph (1)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
Settlement of all BPR obligations includes, among others, settlement of obligations to customer creditors, payment of unpaid salaries, payment of office expenses, unpaid taxes, and other relevant costs.

Letter d
"Public accounting firm" means a public accounting firm registered with the Financial Services Authority in accordance with the Financial Services Authority Regulation regarding the use of public accounting services and public accounting firms in financial service activities.

Paragraph (2)
It is clear enough.

Article 145
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
Included in the final financial position report of the BPR is the verification report from the public accounting firm regarding the settlement of the BPR's obligations.

Letter f
A statement letter from the BPR shareholders containing a statement that all obligations of the BPR have been settled and that if there are obligations and/or claims in the future, they become the responsibility of the shareholders.

Article 146
It is clear enough.

Article 147
It is clear enough.

Article 148
It is clear enough.

Article 149
"Through information technology media" includes, among others, through teleconference media, video conference, or other electronic media.

Article 150
The determination of different policies includes, among others:
a. the amount of paid-up capital for the establishment of the BPR; and b. the adjustment period for the form and business activities of a BUK to become a BPR.
In determining different policies, the Financial Services Authority conducts analysis and assessment of external and internal factors in the form of data and/or information obtained.

Article 151
It is clear enough.

Article 152
It is clear enough.

Article 153
It is clear enough.

Article 154
It is clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6602

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 62 /POJK.03/2020
REGARDING
RURAL BANKS

Part A
LIST OF REGIONS FOR THE ESTABLISHMENT OF BPR BASED ON ZONES

No.	Province	Zone	Minimum Capital (in billion)
1	DKI Jakarta	1	Rp100
2	Banten	1	Rp100
3	West Java	1	Rp100
4	Central Java	1	Rp100
5	D.I. Yogyakarta	1	Rp100
6	East Java	1	Rp100
7	Bali	1	Rp100
8	Aceh	2	Rp50
9	North Sumatra	2	Rp50
10	West Sumatra	2	Rp50
11	Riau	2	Rp50
12	Jambi	2	Rp50
13	Bengkulu	2	Rp50
14	Riau Islands	2	Rp50
15	South Sumatra	2	Rp50
16	Bangka Belitung	2	Rp50
17	Lampung	2	Rp50
18	West Kalimantan	2	Rp50
19	Central Kalimantan	2	Rp50
20	South Kalimantan	2	Rp50
21	North Kalimantan	2	Rp50
22	East Kalimantan	2	Rp50
23	Central Sulawesi	2	Rp50
24	South Sulawesi	2	Rp50
25	West Nusa Tenggara	2	Rp50
26	East Nusa Tenggara	3	Rp25
27	North Sulawesi	3	Rp25
28	Gorontalo	3	Rp25
29	West Sulawesi	3	Rp25
30	Southeast Sulawesi	3	Rp25
31	Maluku	3	Rp25
32	North Maluku	3	Rp25
33	Papua	3	Rp25
34	West Papua	3	Rp25

Part B
DOCUMENT CHECKLIST FOR THE SUBMISSION OF PRINCIPLE APPROVAL FOR THE ESTABLISHMENT OF BPR

No.	Description	Complete	Not Complete
1.	Draft deed of establishment of the legal entity, including draft articles of association, which meet the articles of association requirements as regulated in regulatory provisions and contain a statement of effectiveness after obtaining approval from the Financial Services Authority for the following matters:<br>a. increase in paid-up capital;<br>b. change in share ownership resulting in:<br>1) replacement of shareholders;<br>2) addition of shareholders; and/or<br>3) change in BPR PSP.<br>c. appointment of members of the Board of Directors and members of the Board of Commissioners;	☐	☐
2.	Ownership data in the form of a list of prospective shareholders including details of each share ownership for BPRs with the legal form of a Limited Liability Company, regional public company, and regional joint-stock company, or a list of prospective members including details of the amount of basic deposits and mandatory deposits for BPRs with the legal form of a Cooperative, attached with the following documents:<br>a. in the event that prospective PSPs, whether individuals or legal entities, refer to the appendix as regulated in the Financial Services Authority Circular regarding the assessment of competence and propriety for prospective controlling shareholders, prospective members of the board of directors, and prospective members of the board of commissioners banks;<br>b. in the event that prospective non-PSP shareholders or prospective members are individuals:<br>1) documents stating the identity of each prospective non-PSP shareholder or prospective member in the form of:<br>a) photocopy of identification, in the form of a valid Identity Card;<br>b) curriculum vitae;<br>c) recent color photo size 4x6 cm; and<br>d) photocopy of Taxpayer Identification Number.<br>2) stamped statement letter from each prospective non-PSP shareholder or prospective member, that the source of funds used:<br>a) does not come from loans or financing facilities in any form from banks and/or other parties; and/or<br>b) does not come from and for money laundering and/or terrorism financing and/or proliferation of weapons of mass destruction.<br>3) stamped statement letter from each prospective shareholder or prospective member which at least states that the person concerned:<br>a) is committed to complying with regulatory provisions, especially in the banking sector and supporting the policies of the Financial Services Authority;<br>b) is committed to taking necessary measures in the event that the BPR faces capital or liquidity difficulties in conducting its business activities;<br>c) has never been sentenced for proven criminal offenses that have been decided by a court and have legal force, namely:<br>i. criminal offenses in the financial service sector whose sentence has been completed within the last 20 (twenty) years before submission;<br>ii. criminal offenses, namely criminal offenses listed in the Criminal Code (KUHP) and/or similar KUHPs abroad with a prison sentence threat of 1 (one) year or more whose sentence has been completed within the last 10 (ten) years before submission; and/or<br>iii. other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trafficking, terrorism, counterfeiting money, in the tax sector, in the forestry sector, in the environmental sector, in the marine sector, and fisheries, whose sentence has been completed within the last 20 (twenty) years before submission;<br>d) is not
currently prohibited from becoming a Main Party, which includes, among others, not being listed in the fail list, suspected terrorist list, and terrorist organization list, and financing proliferation of weapons of mass destruction;<br>e) has never been declared bankrupt and/or has never been a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was declared guilty causing a company to be declared bankrupt based on a court decision within the last 5 (five) years before submission;<br>f) does not have non-performing loans and/or non-performing financing;<br>g) does not transfer BPR share ownership held, within a certain period (minimum 5 (five) years), except based on a Financial Services Authority decision;<br>h) is willing to strengthen capital, in the event that the Financial Services Authority deems it necessary;<br>i) is not currently undergoing legal processes, is not currently undergoing competence and propriety assessment at a financial service institution (FSI) and/or is not currently in the re-assessment process due to indications of integrity, financial feasibility/reputation, and/or competence problems at an FSI;<br>j) is committed to the healthy operational development of the BPR;<br>k) will not commit and/or repeat acts and/or actions that cause the person concerned to be included as a party prohibited from becoming a Main Party (for prospective persons who were previously prohibited from being a Main Party);<br>l) will not carry out certain activities that are estimated to worsen the financial and non-financial conditions of the BPR;<br>m) will not accept the provision of funds and/or facilities that are not fair from the BPR;<br>n) implements the direction and strategy of healthy BPR development, which considers financing for Productive Micro and Small Enterprises (UMK) for the local community; and<br>o) is willing to accept the results of the competence and propriety assessment and will not file claims or lawsuits in any form against the results of the competence and propriety assessment determined by the Financial Services Authority.<br>4) document of the plan for the direction and strategy of BPR development for at least 3 (three) years since the BPR operates as a guideline for the healthy development of the BPR, which also includes regional economic development that considers financing for Productive Micro and Small Enterprises (UMK) by considering regional potential and is intended for the local community.<br>c. in the event that prospective non-PSP shareholders or prospective members are legal entities:<br>1) copy of the deed of establishment of the legal entity including articles of association including amendments that have received approval from the competent authority	☐	☐

competent, except for local governments;
2) documents stating the identity of all members of the Board of Directors and members of the Board of Commissioners for Limited Liability Companies (Perseroan Terbatas) or the management structure for cooperative legal entities, consisting of:
a) photocopy of identification, in the form of a valid Identity Card (Kartu Tanda Penduduk); b) curriculum vitae; c) recent color passport-sized photos, 4x6 cm; d) photocopy of the Taxpayer Identification Number (NPWP) of the legal entity; and e) photocopy of the Taxpayer Identification Number (NPWP) of each member of the Board of Directors and members of the Board of Commissioners for Limited Liability Companies, or equivalent positions for other legal entities.

In the event that the prospective shareholder is a local government, the identity document is the document of the regional head or the party appointed to represent the local government;
3) ownership data in the form of a list of shareholders along with details of each shareholding for Limited Liability Companies, recapitulation of principal savings and mandatory savings for each member for cooperative legal entities, or a list of assets for foundation legal entities or other legal entities, except for local governments;
4) financial reports including the balance sheet, profit and loss statement, cash flow statement, statement of changes in equity, and notes to the financial statements, except for local governments;
5) documents on the plan for the direction and strategy of BPR development for at least 3 (three) years since the BPR operates, as a guideline for the development of a healthy BPR, which also includes regional economic development considering financing for productive Micro and Small Enterprises (UMK), considering regional potential, and intended for the local community;
6) a stamped declaration letter from all members of the Board of Directors or members of the Board of Commissioners or management of the relevant legal entity stating that the funds used:
a) do not originate from loans or financing facilities in any form from banks and/or other parties; and/or b) do not originate from and for money laundering and/or terrorism financing or the proliferation of weapons of mass destruction;

In the event that the prospective BPR shareholder is a local government, the declaration letter is replaced with a Regional Head Decision stating that the source of capital deposit funds has been budgeted in the Regional Revenue and Expenditure Budget (APBD) and has been approved by the Regional House of Representatives (DPRD);
7) a stamped declaration letter from the legal entity signed by all members of the Board of Directors and members of the Board of Commissioners or management, which at least contains:
a) commitment to comply with regulations, particularly in the banking sector, and support the policies of the Financial Services Authority (OJK); b) commitment to take necessary measures in the event the BPR faces capital or liquidity difficulties in conducting its business activities; c) no non-performing loans and/or financing; d) no transfer of BPR share ownership within a certain period (minimum 5 (five) years), except based on a decision of the Financial Services Authority (OJK); e) willingness to strengthen capital, if deemed necessary by the Financial Services Authority (OJK); f) not undergoing legal proceedings and/or g) not undergoing an assessment of competence and propriety at a Supervisory Institution (LJK).
8) a stamped declaration letter from each member of the Board of Directors and each member of the Board of Commissioners of the legal entity, which at least states that the concerned party:
a) is committed to complying with regulations, particularly in the banking sector, and supporting the policies of the Financial Services Authority (OJK); b) has never been convicted of a criminal offense that has been decided by a court and has acquired permanent legal force, consisting of:
i. criminal offenses in the financial services sector where the sentence has been fully served within the last 20 (twenty) years prior to the application;
ii. criminal offenses, namely criminal offenses contained in the Criminal Code (KUHP) and/or similar foreign KUHP with a prison sentence threat of 1 (one) year or more where the sentence has been fully served within the last 10 (ten) years prior to the application; and/or
iii. other criminal offenses with a prison sentence threat of 1 (one) year or more, including but not limited to corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, taxation, forestry, environment, marine, and fisheries, where the sentence has been fully served within the last 20 (twenty) years prior to the application;
c) is not prohibited from becoming a Principal Party, which includes among others the list of failed parties, the list of suspected terrorists and terrorist organizations, and financing proliferation of weapons of mass destruction; d) has never been declared bankrupt and/or has never 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 based on a court decision within the last 5 (five) years prior to the application; e) has no non-performing loans and/or financing; f) is not undergoing legal proceedings;
9) a stamped declaration letter from the legal entity signed by all members of the Board of Directors and members of the Board of Commissioners or management, which at least states that the concerned party:
a) will not commit and/or repeat acts and/or actions that cause the concerned party to be included as a party prohibited from becoming a Principal Party (for candidates who have previously been prohibited as a Principal Party); b) will not engage in certain activities that are estimated to worsen the financial and non-financial condition of the BPR; and c) does not receive the provision of funds and/or any facilities that are not reasonable from the BPR;
10) the entire business group structure related to the BPR and the controlling legal entity of the BPR up to the Ultimate Controlling Shareholder (PSPT), except for local governments;
11) a stamped declaration letter from the management of the legal entity stating that the concerned party has submitted accurate and complete information regarding the BPR group structure up to the ultimate owner, in the event the legal entity is a prospective Controlling Shareholder of a BPR (PSP BPR);
12) a stamped declaration letter from the prospective PSP regarding willingness to provide data and information related to the business group structure to the Financial Services Authority (OJK) for supervisory purposes;

Ultimate Controlling Shareholder
13) Filled-in form for prospective Ultimate Controlling Shareholders of BPR (PSPT BPR), both for prospective individuals or prospective legal entities, as regulated in the Financial Services Authority Circular Letter regarding the assessment of competence and propriety for prospective controlling shareholders, prospective directors, and prospective commissioners of banks.
14) A stamped declaration letter from the PSPT, namely:
a) the declaration letter as referred to in item 2.b.3), in the event the PSPT is an individual; b) the declaration letter of the legal entity signed by all members of the Board of Directors and members of the Board of Commissioners or management as per item 2.c.7), in the event the PSPT determined by the Financial Services Authority (OJK) is a legal entity other than a local government;
15) a written commitment from the PSPT stating willingness to implement the direction and strategy for the development of a healthy BPR, considering financing for productive Micro and Small Enterprises (UMK) for the local community;

Members of the Board of Directors and Members of the Board of Commissioners
3. Prospective members of the Board of Directors and prospective members of the Board of Commissioners:
a. List of the composition of members of the Board of Directors or members of the Board of Commissioners; b. Requirement documents as regulated in the provisions of the Financial Services Authority Circular Letter regarding the assessment of competence and propriety for prospective controlling shareholders, prospective directors, and prospective commissioners of banks.

Organizational Structure
4. Plan for organizational structure, human resource composition, and job descriptions and duties;
5. Plan for standard operating procedures and plan for electronic systems and information technology;

Feasibility Study
6. Analysis of the potential and feasibility of establishing a BPR;

Paid-up Capital
7. Proof of full payment of paid-up capital as required according to the zone, in the form of a photocopy of a deposit receipt at a general bank in Indonesia or another BPR, in the name of "Commissioners of the Financial Services Authority q.q. (name of prospective shareholder and/or PSP BPR)" with a note for the establishment of the relevant BPR and its disbursement can only be carried out after obtaining written approval from the Financial Services Authority (OJK), accompanied by an explanation regarding the source of funds used for paid-up capital and other supporting documents, including:
a. account mutation for the last 6 (six) months, in the event the capital deposit originates from savings or checking accounts; b. proof of withdrawal of deposit receipts, in the event the capital deposit originates from deposits;
c. proof of sales transactions, including copies of deeds or sales agreements, photocopies of receipts, in the event the capital deposit originates from the sale of assets, proof of tax payment for the sales transaction, and proof of payment from the asset buyer (including transfer slips or account mutations holding the proceeds of the asset sale);
d. copy of the deed of gift, in the event the capital deposit originates from gifts; and/or e. minutes of the General Meeting of Shareholders (RUPS) approving the distribution of dividends, balance sheets before and after dividend distribution, in the event the capital deposit originates from dividend distribution from share ownership of the prospective shareholder in another company.

Other LJKs Owned by Prospective PSP
8. List and financial reports of BPRs and/or other LJKs owned by the prospective PSP showing that the BPR and/or other LJKs owned by the prospective PSP:
a. are not in a loss position; and b. have healthy capital, liquidity, and profitability ratios referring to the applicable assessment standards for each LJK.

Licensing Costs
9. Proof of full payment of licensing costs for the establishment of a BPR.

We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual situation and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Banks (Bank Perkreditan Rakyat) to be submitted to the Financial Services Authority for the purpose of applying for principle approval for the establishment of a BPR. (City), (date-month-year) (Signature above sufficient stamp) (Full name of one prospective PSP)

Part C
CURRICULUM VITAE LIST
(Prospective Shareholder)
I. PERSONAL DATA

Full Name : …………………………………………………………
Nickname : …………………………………………………………
Place, Date of Birth : …………………………………………………………
Religion : …………………………………………………………
Home Address/Domicile : …………………………………………………………
Home Phone/Domicile ……… Postal Code ………
Office Address :
Office Phone …………… Postal Code ………………
Parents' Names : …………………………………………………………
Number of Siblings
(Biological/Adopted)
: …………………………………………………………
Marital Status : …………………………………………………………
Name of Wife/Husband : …………………………………………………………
Full Name of Family Members
:
a. Biological/Step/Adoptive Parents:
……………………………………………………………………………………… b. Biological/Step/Adoptive Siblings along with their husbands or wives:
………………………………………………………………………………………
c. Biological/Step/Adoptive Children:
……………………………………………………………………………………… d. Biological/Step/Adoptive Grandparents:
……………………………………………………………………………………… e. Biological/Step/Adoptive Grandchildren:
……………………………………………………………………………………… f. Husband/Wife:
……………………………………………………………………………………… g. Parents-in-law:
……………………………………………………………………………………… h. In-laws:
………………………………………………………………………………………
i. Husband/Wife of Biological/Step/Adoptive Children:
……………………………………………………………………………………… j. Grandparents of Husband/Wife:
……………………………………………………………………………………… k. Husband/Wife of Biological/Step/Adoptive Grandchildren:
………………………………………………………………………………………
l. Biological/Step/Adoptive Siblings of Husband/Wife along with their husbands/wives:
………………………………………………………………………………………
II. EDUCATIONAL HISTORY
Level Year Institution Name
Faculty/
Major
Graduated/Degree Obtained
Primary School
First Secondary School
General Secondary School
Academy
Higher Education
Postgraduate
III. TRAINING/COURSES ATTENDED
Name of Training/Course *) Year Organizer Location *) Including certification training
IV. WORK HISTORY
Year Company Position
Responsibility
Achievement Awards
Total
Assets/
Turnover
V. SPECIFIC EXPERIENCE
(Describe specific work experience that can demonstrate your ability to handle difficult situations).
Thus, I compile this curriculum vitae truthfully.
(City), (date-month-year)
(Signature above sufficient stamp)
(Full name of prospective shareholder)

Part D
GUIDELINES FOR COMPIILING POTENTIAL AND FEASIBILITY ANALYSIS
I. Introduction
Potential and feasibility analysis is a set of structured activities aimed at conducting an in-depth assessment of the potential and feasibility of a business, considering the sustainability of the business in the long term. Therefore, the compilation of the feasibility study must be based on the assessment of various aspects and grounded in information reflecting current conditions, particularly economic conditions including regional potential, competition levels, and challenges to be faced in conducting the business. The aspects to be analyzed in compiling the feasibility study consist of 2 (two) elements, as follows:

Potential Aspect, which includes several external sub-aspects including:
a. Economic Potential;
Analysis of the economic potential sub-aspect includes among others Provincial Gross Regional Product (PDRB) at constant prices, Provincial Minimum Wage (UMP), inflation rate, potential for Micro, Small, and Medium Enterprises (MSMEs), number of markets, and other related variables. b. Financial Condition and Competition; Analysis of the financial condition and competition sub-aspect is based on among others the number of BPRs, number of general banks, average BPR savings interest rates, average BPR fixed deposit interest rates for 3 (three) months, average annual BPR credit interest rates, and BPR NPL ratio in the designated operational area.
c. Demographic Conditions;
Analysis of the demographic condition sub-aspect aims to view the potential of the local community, which is reflected in among others the population, productive age rate, and consumption and expenditure levels, which is expected to allow the BPR to know the economic conditions in the area for the last 5 (five) years and the business prospects reflected in projections of at least 3 (three) years ahead.
Feasibility Aspect, which includes several internal sub-aspects including:
a. Business Strategy;
This sub-aspect contains a series of activities designed by the prospective shareholder or BPR to achieve goals both in the short and medium term according to the target market conditions that are the focus of the BPR's business. Analysis of the business strategy sub-aspect must at least cover the following:
1) location, namely an explanation regarding the reasons for choosing the BPR office location;
2) products, namely a description of the types and advantages of fund collection (savings) and credit disbursement products;
3) promotion, namely the marketing program plan to introduce savings and credit products;
4) approach to the target market, namely efforts made to bring services closer to the target market, and social approaches conducted to attract the target market's interest in BPR products;
5) services, namely service procedures for credit customers and depositors;
6) business cooperation plans with other parties, both individually and collectively with a business entity, to ensure the acquisition of prospective customers or debtors as a captive market.
b. Organization and Infrastructure;
This sub-aspect essentially supports the implementation of the previously designed business strategy, with the aim of ensuring that the strategy can be executed optimally. The main strength in conducting operational business lies in human resource (HR) policies and organizational effectiveness, as well as the availability of standard operating procedures that ensure the establishment of service standards, management readiness, and equipment or infrastructure that are prerequisites to support service activities. Analysis of the organization and infrastructure sub-aspect must at least cover the following:
1) HR and organizational structure, in the form of the number of HR and job positions in the organizational structure, HR competence, demonstrated by education and experience, recruitment programs, HR training and development, remuneration systems, and employee performance assessments;
2) infrastructure plan, in the form of office ownership status and feasibility, availability of information technology systems, and other supporting operational facilities; and
3) governance plan, in the form of the availability of work procedures, work implementation guidelines, employee job descriptions, delegation of authority, and internal control.
Organization compilation is carried out with reference to among others Financial Services Authority Regulations regarding the application of governance for rural banks.
c. Finance and Capital
This sub-aspect is one of the keys to the success of the BPR in conducting its business, as it reflects the financial performance targets that must be achieved. When compiling, the prospective PSP or BPR needs to pay attention to the feasibility principle in the calculation and setting of savings and credit interest rates, so as to attract the target market amidst fierce competition. Likewise, it is necessary to apply realistic financial performance targets, so that BPR management can conduct bank business in a comfortable situation. The Finance aspect must at least include financial feasibility and financial performance accompanied by monthly projections of the balance sheet, profit and loss, key financial ratios, and cash flow for 5 (five) years starting from when the BPR conducts operational activities. Analysis of the Finance sub-aspect must at least cover the following:
1) financial feasibility; and
2) financial performance.
Specifically for the establishment of a BPR or the relocation of the BPR head office to a higher zone that requires an increase in paid-up capital, this sub-aspect must also be completed with a capital analysis containing calculations regarding the adequacy of paid-up capital to start business and meet business strategies, organizational completeness with HR in sufficient quantity and quality, availability of supporting infrastructure including a suitable office building, and achieving financial performance according to targets set with competitive interest rates. The prospective PSP or BPR must prove the minimum capital requirement realistically, supported by accountable calculation assumptions. The minimum determined paid-up capital must be able to be elaborated in the form of capital allocation calculations against each pre-operational need and other needs supporting BPR business activities and services. Analysis of the capital sub-aspect must at least cover the following:
1) amount of paid-up capital;
2) calculation of paid-up capital needs; and
3) allocation of paid-up capital for working capital needs;
which is expected to allow the BPR to set the right business strategy from the beginning of the BPR's establishment.
II. Format for Compiling Potential and Feasibility Analysis
The feasibility study document submitted by prospective investors or BPR must at least include the format for potential and feasibility analysis, as follows:
Foreword
BPR Identity
Table of Contents
Chapter I Introduction
A. Background of Establishment/Relocation of BPR Head Office B. Vision and Mission of BPR
C. Purpose of Establishment/Relocation of BPR Head Office
Chapter II BPR Establishment Aspect
A. Potential Aspect
Economic Potential
Financial Potential
Demographic Potential
B. Feasibility Aspect
Business Strategy
Organization and Infrastructure
Finance and Capital *)
Chapter III SWOT Analysis
A. Strengths possessed
B. Weaknesses and Constraints faced
C. Business Opportunities
D. Threats or Competition faced
E. SWOT Analysis Conclusion
Chapter IV Conclusion and Suggestions
Appendices
Note:
*) Capital calculation analysis is only intended for the establishment of new BPRs or relocation of BPR head office addresses to a higher zone that requires an increase in paid-up capital.
III. Components of Potential and Feasibility Analysis
Explanation of Components and Data Requirements
Regarding the fulfillment of supporting data completeness in accordance with aspects, sub-aspects, and components of the compilation of potential and feasibility analysis, this section will explain the data that must be completed by the prospective PSP or BPR according to the format provided. The purpose is to standardize the writing of the potential and feasibility analysis document, and to facilitate the evaluation team in assessing the feasibility study analysis submitted by the prospective PSP or BPR.
Market Research Methodology
Market surveys are a series of structured activities aimed at obtaining a picture of the actual situation of the area, particularly regarding market conditions that will be used as the target for disbursement or fund collection for prospective BPRs. Main information to be collected through this survey includes:
a. community interest in obtaining financial services from BPRs; b. level of competition among LJKs in the target market;
c. potential for BPR savings collection;
d. potential for BPR deposit collection; e. potential for BPR credit disbursement; f. mapping of locations or existence of target markets for fund collection; and g. mapping of locations or existence of target markets for credit disbursement. To guarantee that the collected data has validity and reliability, in conducting the survey, it is necessary to observe the norms commonly used in survey implementation. In its implementation, market surveys can use the assistance of competent consultants, so that the results can be scientifically accountable. In the assessment of potential and feasibility analysis, it is not ruled out that the evaluator team from the Financial Services Authority will conduct verification of the methodology or results obtained in the market research implementation.
Format of Data Components for Feasibility Study Compilation
For the purpose of verifying some of the data used in compiling the potential and feasibility analysis, prospective PSPs are expected to compile some of this data specifically according to the format. In the document, this data is stated in the appendix section, and besides being submitted in printed copy form, it is also submitted in electronic copy form in Microsoft Excel application.
Table Format for Data Compilation
Component Potential Aspect
Data for the last 5 years*)
Projection for 3 years ahead a. Economy, including:

PDRB at constant prices)
Number of UMPs)
Inflation rate
Number of MSMEs
Number of markets
b. Finance, such as:
Number of BPRs
Number of general banks
Number of other LJKs assessed as BPR competitors
Potential BPR savings)

Components of Potential Aspects
5-year historical data*)
3-year forward projection
5) Potential for general bank savings
6) Potential for BPR deposits
7) Potential for general bank deposits
8) Potential for BPR credit
9) Potential for general bank credit
10) Average interest rate for BPR savings
11) Average interest rate for BPR deposits
12) Average annual interest rate for BPR credit
13) BPR NPL rate
c. Demographic aspects, including:

Population count
Per capita income)
Working-age population

Note:
*) Data from the five years prior to the submission of the potential and feasibility analysis document.
) Written in units of millions of Rupiah.

Table of Human Resources, Education Levels, and Financial Experience
Division Name
Education Level
Experience in
Financial Field
Count

Table of Deposit Interest Rates, Credit Interest Rates, and
Discount Factors
Percentage Information
Average BPR Deposit Interest Rate
Applicable Average Deposit Interest Rate
BPR Credit Interest Rate
Applicable Average Credit Interest Rate
Discount Factor
LPS Interest Rate

Table of Detail of Paid Capital/Investment for Branch Office Opening
No. Type of Expenditure
Count
Unit
Price/Cost
Unit
Total Cost
Pre-operational Costs
1 Feasibility Study
2 Recruitment
3 Training
4 Licensing
Total I

No. Type of Expenditure
Count
Unit
Price/Cost
Unit
Total
Infrastructure
Information Technology
1 Desktop PC
2 Server + UPS
3 Laptop
4 Internet
5 Scanner
6 Printer
7 Finance Software
8 Telephone + Fax
Furniture
9 Director or Commissioner's Desk
10 Employee Desk
11 Cashier Desk
12 Buffet/Bookshelf
13 Guest Chairs (Director's Room)
14 Director or Commissioner's Chair
15 Employee Chair
16 Customer Chair
17 Table + Meeting Room Chairs
18 Archive Cabinet
Other Equipment
19 Photocopier
20 Safe Cabinet
21 Filing Cabinet

No. Type of Expenditure
Count
Unit
Price/Cost
Unit
Total
22 Shredder
23 Air Conditioning
24 Electrical Upgrade
25 CCTV
26 Telephone Installation Cost
27 Two-wheeled Motor Vehicles (two)
28 Building Rent
29 Building Renovation
30 Services
Total II
Office Operations
1 Stationery
2 Electricity/Water/Gas
3 Telephone
4 Others
Total III
Human Resources
1 Commissioner/Branch Manager*)
2 Director/Deputy Branch Manager*)
3 Head of Section/Head of Division*)
4 Operations
5 Marketing
6 Security
7 Office Boy
Total IV

No. Type of Expenditure
Count
Unit
Price/Cost
Unit
Total
Promotion
1 Banners
2 Leaflets
3 Events
4 Others
Total V
Working Capital
Total VI
Total I to VI

Table of Financial Assumptions in Financial Calculations
No. Description
Year 1 2 3 4 5

Average annual credit or loan interest rate:
a. Investment b. Working Capital
c. Consumption
Average annual DPK interest rate:
a. Savings b. Deposits
Average annual interest rate for placements in other banks:
a. Checking Accounts b. Savings
c. Certificates of Deposit
d. Deposits (3 months)
Average credit term:

No. Description
Year 1 2 3 4 5 a. Investment b. Working Capital
c. Consumer
5. Ratio of investment, working capital, and consumer credit
6. Credit provisions and administration
7. Credit disbursement per year
8. Credit repayment per year
9. Credit development per year
10. Savings receipts
11. Deposit receipts
12. Savings withdrawals
13. Deposit withdrawals (3 months)
14. BPR deposits in other banks:
a. Checking Accounts b. Savings
c. Deposits
15. Credit quality (%):
a. Good b. Special Attention
c. Substandard
d. Doubtful e. Loss
16. Non Performing Loans (NPL)
17. Discount Factor (%)

No. Description
Year 1 2 3 4 5
18. Paid capital
19. Average annual inflation rate
20. Number of Human Resources:
a. Management b. Employees
21. Fixed Assets and Inventories
a. Land and Buildings b. Furniture
c. Computer hardware
and others d. Operational IT software e. Vault door f. Air Conditioning and generators g. Two-wheeled motor vehicles (two) h. Four-wheeled motor vehicles (four)
22. Building Rent (paid in advance
for 5 years)
23. Interior costs
24. Legalization and Consultant Service Costs
25. Others

Table of Estimated BPR/Branch Office Investment Costs
in the First Year
No.
Type of
Investment
Count and
Unit
Unit
Price
Total
Value
Economic
Life
Depreciation per Year
1 Buildings
2 Computers
3 Four-wheeled vehicles (four)
4 Etc.
Total

Table of Estimated BPR/Branch Office Operational Costs
in the First Year
No. Type of Operational Cost
Count and
Unit
Unit
Price
Total
Value

Labor Costs and Human Resource Development
a. Board of Directors and Board of
Commissioners b. Executive Officials
c. Administration, cashiers, etc.
d. Security e. Office boy f. Education and training g. Employee allowances/incentives h. Etc.
Supporting Operational Costs
a. Electricity

No. Type of Operational Cost
Count and
Unit
Unit
Price
Total
Value b. Water
c. Telephone
d. Etc.
3. Marketing/promotion costs
4. Etc.
Total

Table of Financial Feasibility Analysis for BPR/Branch Office
No. Description
Year 1 2 3 4 5
A. Inflow

Interest Receipts
a. From credit given to third parties b. From other banks:

Checking Accounts
Savings
Etc.

Provisions and Commissions
a. Provisions and commissions b. Others
Other Income
a. Etc.
Cash Receipts from Assets
a. Withdrawal of bank deposits

No. Description
Year 1 2 3 4 5 b. Repayment of credit installments from third parties
c. Sale of fixed assets and
inventories

Land and Buildings
Etc.

Cash Receipts from Liabilities
a. Deposits of liabilities that can be paid immediately b. Savings deposits
c. Time deposit deposits
d. Loans from other banks e. Deposits of various other liabilities f. Etc.
Unpaid Capital Deposits
Donation Capital
Residual Value of Fixed Assets and
Inventories
Etc.
Total Inflow
B. Outflow
Investment Costs:
a. Land and Buildings b. Furniture
c. Computer hardware
and others

No. Description
Year 1 2 3 4 5 d. Operational IT software e. Etc.
2. Cash Expenditures
a. Cash expenditures related to assets

Bank deposit deposits
Credit disbursement
Other assets
Etc.
b. Cash expenditures related to liabilities
Payment of immediate
liabilities
Savings withdrawals
Time deposit withdrawals
Installments of loans from
other banks
Installments of loans from
other parties
Payment of various
liabilities
Etc.
Total Cash Expenditures

Operational Costs
a. Interest Payments:

Savings interest

No. Description
Year 1 2 3 4 5
2) Deposit interest
3) Interest on loans from other banks
4) Interest on loans from other parties
5) Etc.
b. Labor Costs

Salaries, wages, honoraria
Education and training costs
Etc.
c. Taxes (excluding Income Tax)
d. Maintenance and repair costs e. Goods and services f. Electricity g. Promotion h. Etc.
Total Operational Costs

Non-operational Costs
Corporate Income Tax (25%)
Total Outflow
C. Net Benefit
D. Discount Factor (DR 8%)

No. Description
Year 1 2 3 4 5
E. Present Value of Net Benefit
F. Present Value of Net Benefit
Cumulative
G. Present Value
(Profit minus Operational Costs)
H. Present Value of Investment
I. Net Present Value (NPV)
J. Internal Rate of Return (IRR)
K. Profitability Index
(Profitability Index/PI)
L. (Discounted Payback
Period/Discounted PP)
Based on the results of the analysis, the prospective PSP or BPR drafts projected financial position statements (assets, liabilities, and equity) and profit/loss statements for a period of at least 5 (five) years into the future from the establishment of the BPR, along with key financial ratios, such as ROA, BOPO, LDR, NPL, CAR, ATMR, and CR.

Part E
CHECKLIST OF DOCUMENTS FOR SUBMISSION OF
BPR BUSINESS LICENSE APPLICATION APPROVAL
No. Description
Completeness
Yes No Remarks

Copy of the deed of establishment of the legal entity,
which contains the articles of association of the legal entity and approval from the competent authority;   Ownership Data
Ownership data in the form of a list of prospective
shareholders including details of the size of each shareholding for BPRs with Limited Liability Company legal entity status, state-owned enterprises, or state-owned companies; or a list of prospective members including details of the amount of basic deposits and mandatory deposits for BPRs with Cooperative legal entity status, in the event of changes, accompanied by the following documents:
  a. in the event that the prospective PSP, whether an individual or a legal entity, refers to the appendix as regulated in the Circular Letter of the Financial Services Authority regarding the assessment of competence and propriety for prospective controlling shareholders, prospective members of the board of directors, and prospective members of the board of commissioners of banks;  

b. in the event that the prospective non-PSP shareholder or prospective member is an individual:

documents stating the identity of each prospective
non-PSP shareholder or prospective member in the form of:
  a) photocopy of identification, in the form of a valid Resident Identity Card;   b) curriculum vitae;   c) recent color passport photo size 4x6 cm; and   d) photocopy of Taxpayer Identification Number.  
a sworn statement on sufficient stamp duty from each prospective
non-PSP shareholder or prospective member, that the source of funds used:
  a) does not come from loans or financing facilities in any form from banks and/or other parties; and/or   b) does not come from and for money laundering and/or financing terrorism or proliferation of weapons of mass destruction;  
a sworn statement on sufficient stamp duty from each prospective
shareholder or prospective member stating at least that the person concerned:
  a) is committed to complying with the provisions of legislation, particularly in the banking sector and supporting the policies of the Financial Services Authority;   b) is committed to undertaking necessary efforts in the event that the BPR faces capital or liquidity difficulties in conducting its business activities;   c) has never been sentenced for proven criminal acts that have been decided by a court and have acquired permanent legal force in the form of:
 
i. criminal acts in
the Financial Services Sector whose sentence has been completed within the last 20 (twenty) years prior to submission;  

ii. criminal acts
namely criminal acts listed in the Criminal Code (KUHP) and/or similar KUHP abroad with a threat of imprisonment penalty of 1 (one) year or more whose sentence has been completed within the last 10 (ten) years prior to submission; and/or  
iii. other criminal acts
with a threat of imprisonment penalty of 1 (one) year or more, including corruption, money laundering, narcotics/ psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting of money, in the field of taxation, in the field of forestry, in the field of environment, the field of marine, and fisheries, whose sentence has been completed within the last 20 (twenty) years prior to submission; d) is not prohibited from becoming a Principal Party which among others is listed in the fail list, list of suspected terrorists and terrorist organizations, and financing proliferation of weapons of mass destruction;   e) has never been declared bankrupt and/or has never been a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was declared guilty causing a company to be declared bankrupt based on a court decision within 5 (five) years prior to submission;   f) does not have credit and/or financing in default;   g) does not engage in transfer of ownership of BPR shares owned,  

within a certain period
(minimum 5 (five) years), except based on a decision of the Financial Services Authority; h) is willing to strengthen capital, in the event that according to the Financial Services Authority it is necessary;   i) is not undergoing legal proceedings, is not undergoing a competence and propriety assessment process at a LJK and/or is not in the process of re-evaluation due to indications of integrity issues, financial feasibility/reputation, and/or competence at a LJK;   j) is committed to the operational development of a healthy BPR;   k) will not engage in and/or repeat acts and/or actions that cause the person concerned to be included as a party prohibited from becoming a Principal Party (for candidates who have previously been prohibited as a Principal Party); l) will not engage in certain activities that are estimated to worsen the financial and non-financial conditions of the BPR;   m) will not accept the provision of funds and/or any facilities that are not reasonable from the BPR;   n) implements directions and strategies for the development of a healthy BPR, which considers financing for Small and Micro Enterprises (UMK) that are productive for local communities; and   o) is willing to accept the decision of the results of the assessment of competence and propriety and will not file claims or lawsuits in any form against the results of the assessment of competence and propriety established by the Financial Services Authority.  
4) documents outlining the direction and strategy for BPR development
for at least 3 (three) years since the BPR operates as a guideline for the development of a healthy BPR, which also includes regional economic development that considers financing for Small and Micro Enterprises (UMK) that are productive by considering the potential of the region and is intended for local communities.  
c. in the event that the prospective non-PSP shareholder or prospective member
is a legal entity:
 

copy of the deed of establishment of the
legal entity including the articles of association including amendments that have received approval from the competent authority, except for Local Governments;  
documents stating the identity of all members
of the Board of Directors and members of the Board of Commissioners for Limited Liability Company legal entities or management structure for cooperative legal entities in the form of:
  a) photocopy of identification, in the form of a valid Resident Identity Card;   b) curriculum vitae;  

c) recent color passport photo size 4x6 cm;
  d) photocopy of Taxpayer Identification Number from the legal entity;   e) photocopy of Taxpayer Identification Number from each member of the Board of Directors and members of the Board of Commissioners for Limited Liability Company legal entities or positions equivalent to for other legal entities.   In the event that the prospective shareholder is a Local Government, the document stating the identity is a document from the Head of the Region or a party appointed to represent the local government.  
3) ownership data in the form of a list
of shareholders including details of the size of each shareholding for Limited Liability Company legal entities, recapitulation of basic deposits and mandatory deposits for each member and a list gifts for Cooperative legal entities, or a list of assets for foundation legal entities or other legal entities, except for local governments;  

financial reports for the last 2 (two) years prior to the date of the letter
of application which include balance sheets, profit and loss statements, cash flow statements, statements of changes in equity, and notes to the financial reports, except for local governments; For legal entities that have an investment of Rp1,000,000,000.00 (one billion rupiahs) or more, the financial reports at the end of the year prior to the date of the letter of application must be audited by a public accountant, except for local governments.  
documents outlining the direction and strategy for BPR development
for at least 3 (three) years since the BPR operates as a guideline for the development of a healthy BPR, which also includes regional economic development that considers financing for Small and Micro Enterprises (UMK) that are productive by considering the potential of the region and is intended for local communities;  
a sworn statement on sufficient stamp duty from all members
of the board of directors or members of the board of commissioners or management of the relevant legal entity that the funds used:
a) do not come from loans or financing facilities in any form from banks and/or other parties; and/or   b) do not come from and for money laundering and/or financing terrorism or proliferation of weapons of mass destruction;   In the event that the prospective BPR shareholder is a local government, the sworn statement is replaced with a Decision of the Head of the Region stating that the source of capital deposit funds has been budgeted in the Regional Revenue and Expenditure Budget and has been approved by the Regional People's Representative Council;  
a sworn statement on sufficient stamp duty from the legal entity signed by all
members of the board of directors and members of the board of commissioners, stating at least:
a) commitment to comply with the provisions of legislation, particularly in  

the field of banking and supporting the policies of the Financial Services Authority; b) commitment to undertake necessary efforts in the event that the BPR faces capital or liquidity difficulties in conducting its business activities;   c) does not have credit and/or financing in default;   d) does not engage in transfer of ownership of BPR shares owned, within a certain period (minimum 5 (five) years), except based on a decision of the Financial Services Authority;   e) is willing to strengthen capital, in the event that according to the Financial Services Authority it is necessary;   f) is not undergoing legal proceedings and/or competence and propriety assessment process at a LJK.  
8) a sworn statement on sufficient stamp duty from each member
of the board of directors and each member of the board of commissioners of the legal entity, stating at least that the person concerned:
a) is committed to complying with the provisions of legislation, particularly in the field of banking and supporting the policies of the Financial Services Authority;   b) has never been sentenced for proven criminal acts that have been decided by a court and have acquired permanent legal force in the form of:
 
i. criminal acts in
the financial services sector whose sentence has been completed within the last 20 (twenty) years prior to submission;  
ii. criminal acts
namely criminal acts listed in the Criminal Code (KUHP) and/or similar KUHP abroad with a threat of imprisonment penalty  

of 1 (one) year or more whose sentence has been completed within the last 10 (ten) years prior to submission; and/or
iii. other criminal acts
with a threat of imprisonment penalty of 1 (one) year or more, including corruption, money laundering, narcotics/ psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting of money, in the field of taxation, in the field of forestry, in the field of environment, the field of marine, and fisheries, whose sentence has been completed within the last 20 (twenty) years prior to submission;   c) is not prohibited from becoming a Principal Party which among others  

is listed in the fail list, list of suspected terrorists and terrorist organizations, and financing proliferation of weapons of mass destruction; d) has never been declared bankrupt and/or has never been a shareholder, member of the Board of Directors or member of the Board of Commissioners who was declared guilty causing a company to be declared bankrupt based on a court decision within 5 (five) years prior to submission;   e) does not have credit and/or financing in default;   f) is not undergoing legal proceedings;  
9) a sworn statement on sufficient stamp duty from the legal entity signed by all
members of the board of directors and members of the board of commissioners or management stating at least that the person concerned:
  a) will not engage in and/or repeat acts and/or  

actions that cause the person concerned to be included as a party prohibited from becoming a Principal Party (for candidates who have previously been prohibited as a Principal Party); b) will not engage in certain activities that are estimated to worsen the financial and non-financial conditions of the BPR; and   c) will not accept the provision of funds and/or facilities that are not reasonable from the BPR.  
10) the entire business group structure related to the BPR and the controlling legal entity
of the BPR down to the PSPT, except for local governments;  
11) a sworn statement on sufficient stamp duty from the management of the legal entity stating
that the person concerned has provided information accurately and completely regarding the BPR group structure down to the ultimate owner, in the event that the legal entity is a prospective PSP for BPR;  
12) a sworn statement on sufficient stamp duty from the prospective PSP regarding
 

willingness to provide data and information related to the structure of the business group to the Financial Services Authority in the framework of supervision; Ultimate Controlling Shareholder
13) Questionnaire form for prospective PSPT
for BPR, whether for prospective individuals or prospective legal entities, as regulated in the Circular Letter of the Financial Services Authority regarding the assessment of competence and propriety for prospective controlling shareholders, prospective members of the board of directors, and prospective members of the board of commissioners of banks.  
14) a sworn statement on sufficient stamp duty from the PSPT, namely:
  a) a sworn statement as referred to in item 2.b.3), in the event that the PSPT is an individual;   b) a sworn statement from the legal entity signed by all members of the board of directors and members of the board of commissioners or management as in item 2.c.7), in the event that the PSPT determined by the Financial  

Services Authority is a legal entity other than local governments;
15) a written commitment from the PSPT
stating willingness to implement the plan direction and strategy for the development of a healthy BPR, which considers financing for Small and Micro Enterprises (UMK) that are productive for local communities;   Members of the Board of Directors, Members of the Board of Commissioners, and Executive Officials
3. Prospective members of the Board of Directors and prospective members of
the Board of Commissioners, in the event of changes:
  a. List of members of the Board of Directors or members of the Board of Commissioners;   b. Documents for requirements as regulated in the provisions of the Circular Letter of the Financial Services Authority regarding the assessment of competence and propriety for prospective controlling shareholders, prospective members of the board of directors, and prospective members of the board of commissioners of banks.  
4. Executive Officials:  
a. photocopy of identification, in the form of a valid Resident Identity Card; b. curriculum vitae; and  

c. recent color passport photo size 4x6
cm.
 
Organizational Structure
5. Organizational structure, human resource structure, job descriptions and
positions, and standard operating procedures, which include at least:
  a. human resource management including policies: employee regulations, ranks, remuneration, promotion, employee welfare, training and competency development; b. job descriptions and responsibilities of members of the Board of Directors, members of the Board of Commissioners, Executive Officials, and employees;  
c. internal audit function;  
d. cash management;   e. fund placement and credit provision;   f. fund mobilization;   g. bookkeeping;   h. document management and storage; and
i. information technology management.  
Operational Readiness
6. Evidence of operational readiness, which includes at least:
  a. electronic systems and information technology;  

b. list of fixed assets and inventory; ▦ ▦
c. proof of control of the office building; ▦ ▦
d. photos and/or video of the office building and room layout; ▦ ▦ e. examples of forms or instruments to be used for BPR operations; ▦ ▦ f. photocopy of the Tax Identification Number; and ▦ ▦ g. valid business registration number as a company registration mark; ▦ ▦ Other Financial Institutions Owned by the PSP or Prospective PSP
7. List and financial reports of the BPR and/or other Financial Institutions owned by the PSP or prospective PSP, in the event of a change in PSP, which show that the BPR and/or other Financial Institutions owned by the PSP or prospective PSP:
▦ ▦ a. are not in a loss position; and ▦ ▦ b. have healthy capital adequacy, liquidity, and profitability ratios referring to the applicable assessment standards for each respective Financial Institution. ▦ ▦ We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual circumstances, and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Banks to be submitted to the Financial Services Authority in the context of applying for a Business License for the establishment of a BPR. (City), (date-month-year) (Signature above sufficient with stamp) (Full Name of the BPR President Director)

Part F
(City), (date-month-year)
To
Head of OJK/Head of Regional OJK
Subject: Report on the Implementation of BPR Business Activities
Referring to the Decision of the Commissioners of the Financial Services Authority Number ............ dated ......... concerning Approval of BPR Business License ............., hereby reported that we have commenced business activities on date ...............
This is for your information.
(BPR Board of Directors)
(Signature)
(Full Name)
Copy to:
Head of Licensing and Banking Information Department

Part G
DOCUMENT CHECKLIST FOR APPROVAL OF CHANGE OF BUSINESS LICENSE FROM BUK TO BPR BASED ON BUK INITIATIVE No. Description Completeness Yes No Remarks Documents for Change of Business License Preparation

Minutes of the General Meeting of Shareholders agreeing to the plan to change the BPR business license from BUK.
▦ ▦
Reasons for changing the BPR business license from BUK.
▦ ▦
List of shareholders:
a. in the case of individuals, accompanied by at least documents from the PSP stating their willingness to overcome the capital and liquidity difficulties faced by the BPR in carrying out its business; ▦ ▦ b. in the case of legal entities, accompanied by at least documents:

a statement letter from the management of the legal entity stating their willingness to overcome the capital and liquidity difficulties faced by the BPR in carrying out its business activities, in the event that the legal entity is a PSP:
▦ ▦
a statement letter from the PSPT stating their willingness to overcome the capital and liquidity difficulties faced by the BPR in carrying out its business activities; and
▦ ▦
a statement letter from the management of the legal entity stating that they have provided true and complete information regarding the BPR business group structure up to the ultimate owner, in the event that the legal entity is a PSP;
▦ ▦

List of Board of Directors members and Board of Commissioners members:
a. in the event of no changes, accompanied by at least documents:

proof of participation in the maintenance program for competency certification in the field of BPR;
▦ ▦
a statement letter from the Board of Directors and Board of Commissioners members stating that they meet the regulations regarding the majority of Board of Directors and Board of Commissioners members not having family or in-law relationships up to the second degree with other members of the Board of Directors or Board of Commissioners as regulated in the Financial Services Authority Regulation concerning rural banks;
▦ ▦
a statement letter from Board of Directors members stating that they do not hold concurrent positions in banks, non-bank companies, and/or other institutions as regulated in the Financial Services Authority Regulation concerning rural banks;
▦ ▦
a statement letter from Board of Commissioners members stating that they do not hold concurrent positions exceeding the regulations as regulated in the Financial Services Authority Regulation concerning rural banks;
▦ ▦ b. in the event of changes, accompanied by document requirements as referred to in the Financial Services Authority Regulation concerning the assessment of competence and propriety for key parties of financial service institutions; ▦ ▦

organizational structure plan, human resource composition, and job descriptions;
▦ ▦
business plan as a BPR; ▦ ▦
infrastructure readiness plan;
operational readiness plan; ▦ ▦
latest financial report in the format of BUK financial reports and BPR financial reports; and
▦ ▦
proof of announcement and socialization of the plan to change the business license from BUK to BPR to all customers and the public;
▦ ▦
Action Plan Documents
draft deed of amendment of the Articles of Association and ownership status including the change of status of a public company to a closed corporation;
▦ ▦
cessation of BUK business activities not permitted for BPR; and
▦ ▦
adjustment of the type and office network area of BUK not permitted for BPR.
▦ ▦
We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual circumstances, and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Banks to be submitted to the Financial Services Authority in the context of applying for a change of business license from BUK to BPR based on the initiative of the BUK. (City), (date-month-year) (Signature above sufficient with stamp) (Full Name of the BUK President Director)

Part H
IMPLEMENTATION OF ADJUSTMENT OF BUSINESS ACTIVITIES AND OFFICE NETWORK OF BUK TO BPR
I. Introduction
In carrying out the change of business license from BUK to BPR, the BUK must compile and implement an action plan, which must at least contain:
a. draft deed of amendment of the Articles of Association and ownership status including the change of status of a public company to a closed corporation; b. cessation of BUK business activities not permitted for BPR, except for the settlement of rights and obligations; and
c. adjustment of the type and office network area of BUK not permitted for BPR.
This action plan must be completed within a maximum period of 1 (one) year from the date the BPR business license is issued. Based on certain considerations regarding the implementation of the adjustment of the form and business activities from BUK to BPR, the Financial Services Authority may establish a different completion period for the action plan.
II. Draft Deed of Amendment of Articles of Association and Ownership Status Including the Change of Status of a Public Company to a Closed Corporation
a. The change of business license from BUK to BPR must be followed up with legal adjustments including the preparation of a draft deed of amendment of the Articles of Association which among other things includes matters that have changed, such as:

a name confirming the change from BUK to BPR and domicile, for example PT Bank "A" to PT BPR "A".
confirmation regarding the change of activities and business license from BUK to BPR.

The implementation of the GMS approval for the change of business license and amendment of the Articles of Association must be carried out no later than 2 (two) months from the date the business license from the Financial Services Authority is issued. b. For BUKs with the status of a public company, it is required to adjust the BPR resulting from the change of business license from a BUK with the status of a public company by referring to the provisions of legislation in the capital market sector, including the Capital Market Law and Financial Services Authority Regulations governing the conduct of activities in the capital market sector, information disclosure or material facts by issuers or public companies, and/or voluntary tender offers. BUKs that will carry out the change of status of a public company to a closed corporation must make an announcement to the public before holding an independent GMS and shareholders who are not affiliated parties of the public company. Meanwhile, matters related to the determination of share purchase prices must continue to protect the interests of public shareholders.
III. Cessation of BUK Business Activities Not Permitted for BPR
a. Giro deposits and related giro activities
Business activities included in giro deposits and related giro activities, including giro transactions, BUK's giro accounts at Bank Indonesia, and/or participation in BI-RTGS, BI-SSSS, and SKNBI. In order to settle obligations to Bank Indonesia, the BUK may open a holding account (escrow account) at Bank Indonesia in the name of the BUK. The BUK must make an announcement to customers, including for the settlement or transfer of rights and obligations to customers. Further procedures regarding the settlement of giro deposits and related giro activities refer to the provisions of legislation regarding participation in the Bank Indonesia National Clearing System.

b. Foreign currency business activities, except for foreign currency exchange activities (KUPVA); Business activities conducted with foreign currency include among other things fund collection; fund distribution in the form of fund distribution and placement in other banks, trade finance such as letters of credit and foreign currency bank guarantees; and treasury. In the event that the BUK has approval to conduct KUPVA, the BPR resulting from the change of business license from the BUK may continue such business activities. The BPR resulting from the change of business license from the BUK is not permitted to serve the opening of new foreign currency savings accounts and transactions that cause the foreign currency account balance to increase (except incoming transfers) as of the date the plan report for the cessation of foreign currency business activities is submitted to the Financial Services Authority. During a transition period of maximum 1 (one) year, the BPR resulting from the change of business license from the BUK must establish a mechanism for converting foreign currency to Rupiah, including the possibility of cooperating with other BUKs to accept the transfer of foreign currency savings account balances managed by Branch Offices or sub-branch offices outside the region. In the event that the transition period has ended and there are still unsettled foreign currency balances, all unsettled foreign currency giro and savings accounts can be converted into savings accounts, while foreign currency fixed deposits can be converted into Rupiah fixed deposits. Regarding loans received in the form of foreign currency, the BPR resulting from the change of business license from the BUK may carry out among other things:

settlement of received loans in full at the end of the 1 (one) year transition period as long as it does not increase liquidity risk; and/or
conversion of received loans in foreign currency to Rupiah.

c. Issuance of debt instruments or bonds
Settlement through the repurchase of debt instruments (bonds) is carried out by referring to the provisions of legislation concerning among other things Financial Services Authority Regulations concerning debt instrument or sukuk trust agreements. d. Ownership of securities Ownership of securities is settled during the implementation period of the action plan. The proceeds from the sale of such securities can be one of the sources of reserves for the settlement of obligations by the BPR resulting from the change of business license from the BUK. e. Interbank Money Market Transactions (PUAB) As of the date the plan report for the cessation of PUAB activities is submitted to the Financial Services Authority, the BUK is no longer permitted to conduct new transactions in PUAB. The BUK must make an announcement to other banks conducting PUAB transactions. Settlement and/or transfer of rights and obligations in PUAB must be carried out before submitting a request to BI to close the status of participation in the Bank Indonesia Electronic Trading Platform (BI-ETP), BI-RTGS, BI-SSSS, and SKNBI.

Taking (receiving)
Settlement of loans in PUAB according to the term (in the event that the term does not exceed the transition period), if the loan term exceeds the transition period, then the term must be adjusted or early settlement must be made.
Placing (depositing)
Receipt of loan payments according to the term (in the event that the term does not exceed the transition period), if the loan term exceeds the transition period, then the term must be adjusted. f. Other business activities not permitted for BPR, including the issuance of negotiable debt instruments (SKBDN), Rupiah-denominated bank guarantees, and business activities regulated by other authorities such as credit card issuance as regulated in the provisions of legislation concerning payment instruments, payment transaction processing services, and/or national payment gateways.
IV. Adjustment of the Type and Office Network Area of BUK with that Permitted for BPR
In carrying out the adjustment of the type and office network, BUKs that will carry out the change of business license carry out stages including among other things:
a. submission of information in the action plan documents to the Financial Services Authority regarding the type and office network area that do not comply with BPR regulations; b. announcement to customers, debtors, and/or other parties regarding the plan to cease transactions in the office network as referred to in letter a;
c. submission of the plan to close, relocate, and/or change the status of the office network as referred to in letter a, including the plan to transfer or settle claims and obligations to customers and other parties.
After the decision to change the business license to BPR is issued, the BPR resulting from the change of business license from the BUK settles all business activities in the office network, including the transfer or settlement of all claims and obligations of the BUK to customers and other parties. In the context of closing/relocating/changing the status of the office network, the BPR resulting from the change of business license from the BUK among other things submits:
a. proof of transfer of rights and obligations to the office network area permitted for BPR or to other banks, or submits proof of settlement of all obligations to customers and other parties; b. a statement letter from the Board of Directors members of the BPR resulting from the change of business license from the BUK that the steps to settle all office obligations to customers and other parties have been completed and if there are claims in the future, they become the responsibility of the Board of Directors members of the BPR resulting from the change of business license from the BUK; and/or
c. proof of office readiness including facilities.

Part I
DOCUMENT CHECKLIST IN THE CONTEXT OF APPLICATION FOR INCREASE OF PAID-UP CAPITAL RESULTING IN CHANGE OF PSP No. Description Completeness Yes No Remarks

Proof of capital deposit in the form of a photocopy of a deposit certificate at a commercial bank, another BPR, or the BPR itself.
▦ ▦
Explanation of the source of funds used for the capital deposit in item 1, which explains the entire flow of funds from the initial PSP asset source until the funds in question are recorded as a capital deposit.
▦ ▦
Supporting documents regarding the source of funds used for the capital deposit in item 1, including among other things:
▦ ▦ a. proof of capital deposit accounting in the form of journals and financial position reports before and after the capital deposit; ▦ ▦ b. account statements for the last 6 (six) months in the event that the capital deposit comes from savings or giro; ▦ ▦
c. proof of withdrawal of deposit certificates in the event that the capital deposit comes from deposits, including among other things:

transfer slip or account statement holding the withdrawal proceeds; and
▦ ▦
photocopy of the withdrawn deposit certificate;
d. proof of sales transactions, including among other things copies of deeds or sales agreements, photocopies of receipts, in the event that the capital deposit comes from the sale of assets, proof of tax payment on sales transactions, and proof of payment from the asset buyer (including among other things transfer slips or account statements holding the proceeds from the sale of assets); and/or ▦ ▦ e. copies of donation deeds and/or inheritance documents, in the event that the capital deposit comes from donations and/or inheritance. ▦ ▦

Specifically for paid-up capital increases originating from the dividend distribution of the BPR itself, accompanied by documents:
▦ ▦ a. GMS minutes for dividend distribution; ▦ ▦ b. proof of capital deposit accounting in the form of dividend distribution journals and BPR financial position reports before and after dividend distribution; and ▦ ▦
c. withholding tax receipts or tax payments on dividends.
▦ ▦
Notarized statement letter from each PSP, stating that the source of funds used:
a. does not come from loans or financing facilities in any form from banks and/or other parties; and/or b. does not come from and for money laundering and/or terrorism financing or the proliferation of weapons of mass destruction.
Document requirements for prospective PSPs, both individuals and legal entities, including the final PSP, referring to the appendix as regulated in the Financial Services Authority Circular concerning the assessment of competence and propriety for prospective controlling shareholders, prospective Board of Directors members, and prospective Board of Commissioners members of banks;
▦ ▦
Other Financial Institutions Owned by the PSP or Prospective PSP
List of BPRs and/or other Financial Institutions owned by the BPR PSP or prospective BPR PSP, accompanied by:
▦ ▦ a. balance sheets; ▦ ▦ b. profit and loss reports; and ▦ ▦
c. certain ratios including capital adequacy, liquidity, and profitability ratios referring to the applicable assessment standards for each respective Financial Institution.
▦ ▦
Financial reports of legal entity PSPs including balance sheets, profit and loss reports, cash flow reports, equity change reports, and notes to the financial position reports at the latest date of the paid-up capital increase or at the end of the month before the date of the application for the increase of paid-up capital.
▦ ▦

We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual circumstances, and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Banks to be submitted to the Financial Services Authority in the context of applying for approval to increase paid-up capital resulting in a change in PSP. (City), (date-month-year) (Signature above sufficient with stamp) (Full Name of the BPR Board of Directors)

Part J
DOCUMENT CHECKLIST IN THE CONTEXT OF APPLICATION FOR APPROVAL OF CHANGE OF SHARE OWNERSHIP RESULTING IN CHANGE OF PSP No. Description Completeness Yes No Remarks

Explanation of the source of funds used to purchase shares, which explains the entire flow of funds from the initial PSP asset source until the funds in question are used to purchase shares.
▦ ▦
Proof of share transfer (including among other things share sales deeds, donation deeds, and/or inheritance documents) accompanied by:
▦ ▦ a. proof of payment for the purchase of shares; b. proof of sales transactions, including among other things copies of deeds or sales agreements; and/or ▦ ▦
c. copies of donation deeds and/or inheritance documents in the event that the share transfer comes from donations and/or inheritance.
▦ ▦
Notarized statement letter from each PSP, stating that the source of funds used for the purchase of shares:
a. does not come from loans or financing facilities in any form from banks and/or other parties; and/or b. does not come from and for money laundering and/or terrorism financing or the proliferation of weapons of mass destruction.
Document requirements for prospective PSPs, both individuals and legal entities, including the final PSP, referring to the appendix as regulated in the Financial Services Authority Circular concerning the assessment of competence and propriety for prospective controlling shareholders, prospective Board of Directors members, and prospective Board of Commissioners members of banks;
▦ ▦
Other Financial Institutions Owned by the PSP or Prospective PSP
List of BPRs and/or other Financial Institutions owned by the BPR PSP or prospective BPR PSP, accompanied by:
▦ ▦ a. balance sheets; ▦ ▦ b. profit and loss reports; and ▦ ▦
c. certain ratios including capital adequacy, liquidity, and profitability ratios referring to the applicable assessment standards for each respective Financial Institution.
▦ ▦
Financial reports of legal entity PSPs including balance sheets, profit and loss reports, cash flow reports, equity change reports, and notes to the financial position reports at the latest date of the share transfer or at the end of the month before the date of the application for the change of share ownership resulting in a change in PSP.
▦ ▦

We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual circumstances, and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Banks to be submitted to the Financial Services Authority in the context of applying for approval to change share ownership resulting in a change in PSP. (City), (date-month-year) (Signature above sufficient with stamp) (Full Name of the BPR Board of Directors)

Part K
DOCUMENT CHECKLIST IN THE CONTEXT OF SUBMISSION OF REPORTS ON INCREASE OF PAID-UP CAPITAL AND/OR CHANGE OF SHARE OWNERSHIP THAT DOES NOT RESULT IN A CHANGE IN PSP No. Description Completeness Yes No Remarks

Proof of capital deposit in the form of a photocopy of a deposit certificate at a commercial bank, another BPR, or the BPR itself, in the event that there is an increase in paid-up capital, accompanied by among other things:
▦ ▦ a. explanation of the source of funds used for the capital deposit, which explains the entire flow of funds from the initial PSP or shareholder asset source until the funds in question are recorded as a capital deposit; ▦ ▦ b. supporting documents regarding the source of funds used for the capital deposit, including among other things:
▦ ▦

proof of capital deposit accounting in the form of journals and financial position reports before and after the capital deposit;
▦ ▦
account statements for the last 6 (six) months in the event that the capital deposit comes from savings or giro;
▦ ▦
proof of withdrawal of deposit certificates in the event that the capital deposit comes from deposits, including among other things:
a) transfer slip or account statement holding the withdrawal proceeds; and b) photocopy of the withdrawn deposit certificate.
▦ ▦
proof of sales transactions, including among other things copies of deeds or sales agreements, photocopies of receipts, in the event that the capital deposit comes from the sale of assets, proof of tax payment on sales transactions, and proof of payment from the asset buyer (including among other things transfer slips or account statements holding the proceeds from the sale of assets); and/or
▦ ▦
copies of donation deeds and/or inheritance documents, in the event that the capital deposit comes from donations and/or inheritance.
▦ ▦

Specifically for paid-up capital increases originating from the dividend distribution of the BPR itself, accompanied by documents:
▦ ▦ a. GMS minutes for dividend distribution; ▦ ▦ b. proof of capital deposit accounting in the form of dividend distribution journals and BPR financial position reports before and after dividend distribution; and ▦ ▦

c. tax withholding certificate or proof of tax payment
for dividends.

Proof of share transfer, in the event it is not accompanied by an increase in paid-up capital (among others in the form of a share sale deed, gift deed, and/or inheritance documents) is accompanied by:

a. An explanation of the source of funds used to purchase the shares, which explains the entire flow of funds from the source of the initial PSP assets or shareholders until the funds in question are used to purchase the shares;

b. proof of payment for the share purchase;

c. proof of the sale and purchase transaction, among others a copy of the deed or sale and purchase agreement; and/or

d. a copy of the gift deed and/or inheritance documents, in the event the share transfer originates from a gift and/or inheritance.

Ownership data in the form of a list of shareholders and/or PSPs along with details of the size of each shareholding for BPRs with the legal entity status of a Limited Liability Company, State-Owned Enterprises, or Regional-Owned Enterprises, or a list of members along with details of the amount of basic and mandatory savings for BPRs with the legal entity status of a Cooperative.
In the event of a replacement and/or addition of shareholders, the ownership data is accompanied by the following documents:

a. in the event that non-PSP shareholders or members are individuals:

documents stating the identity of each non-PSP shareholder or member in the form of:

a) a photocopy of an ID card, in the form of a still-valid Resident Identity Card (KTP);

b) a curriculum vitae;

c) a recent color passport-sized photo measuring 4x6 cm; and

d) a photocopy of the Taxpayer Identification Number (NPWP);

a stamped declaration letter from each non-PSP shareholder or member, stating that the source of funds used:

a) does not originate from loans or financing facilities in any form from banks and/or other parties; and/or

b) does not originate from and is not for money laundering and/or terrorism financing or the proliferation of weapons of mass destruction;

a stamped declaration letter from each non-PSP shareholder or member, which at least states that the concerned party:

a) is committed to complying with laws and regulations, particularly in the banking sector, and supporting the policies of the Financial Services Authority (OJK);

b) is committed to taking necessary measures in the event the BPR faces capital or liquidity difficulties in conducting its business activities;

c) has never been sentenced for proven criminal acts that have been decided by a court and have acquired permanent legal force, in the form of:

i. criminal acts in the financial services sector whose sentence has been completed within the last 20 (twenty) years prior to the application;

ii. criminal acts, namely criminal acts listed in the Criminal Code (KUHP) and/or similar KUHPs abroad with a prison sentence threat of 1 (one) year or more whose sentence has been completed within the last 10 (ten) years prior to the application; and/or

iii. other criminal acts with a prison sentence threat of 1 (one) year or more, among others corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, in the field of taxation, in the field of forestry, in the field of the environment, in the field of marine affairs, and fisheries, whose sentence has been completed within the last 20 (twenty) years prior to the application;

d) is not currently prohibited from becoming a Principal Party, which among others is not listed in the failed list, suspected terrorist list, terrorist organization list, and financing of proliferation of weapons of mass destruction;

e) has never been declared bankrupt and/or has never been a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was declared guilty causing a company to be declared bankrupt based on a court decision within the last 5 (five) years prior to the application;

f) does not have non-performing loans and/or financing;

g) does not transfer the ownership of BPR shares held, within a certain period (minimum 5 (five) years), except based on a decision of the Financial Services Authority (OJK);

h) is willing to strengthen capital, in the event required by the Financial Services Authority (OJK);

i) is not currently undergoing legal proceedings, is not currently undergoing a suitability and propriety assessment at a Licensed Financial Institution (LJK) and/or is not currently in a re-assessment process due to indications of integrity issues, financial feasibility/reputation, and/or competence at a Licensed Financial Institution (LJK);

j) is committed to the healthy operational development of the BPR;

k) will not commit and/or repeat acts and/or actions that cause the concerned party to be included as a party prohibited from becoming a Principal Party (for candidates who were previously prohibited from becoming a Principal Party);

l) will not engage in certain activities that are estimated to worsen the financial and non-financial conditions of the BPR;

m) will not accept the provision of funds and/or any facilities that are not reasonable from the BPR;

n) implements the directions and strategies for the healthy development of the BPR, which considers financing for productive Micro and Small Enterprises (UMK) for the local community; and

o) is willing to accept the results of the suitability and propriety assessment and will not file claims or lawsuits in any form against the results of the suitability and propriety assessment established by the Financial Services Authority (OJK); and

documents regarding the plan for the direction and strategy of BPR development for at least 3 (three) years since the BPR operated as a guide for the healthy development of the BPR, which also includes regional economic development that considers financing for productive Micro and Small Enterprises (UMK) by considering regional potential and is intended for the local community.

b. in the event that non-PSP shareholders or members are legal entities:

a copy of the establishment deed of the legal entity including the articles of association along with its amendments that have received approval from the competent authority, except for local governments;
documents stating the identity of all members of the board of directors and members of the board of commissioners for Limited Liability Company legal entities or the management structure for Cooperative legal entities in the form of:

a) a photocopy of an ID card, in the form of a still-valid Resident Identity Card (KTP);

b) a curriculum vitae;

c) a recent color passport-sized photo measuring 4x6 cm;

d) a photocopy of the Taxpayer Identification Number (NPWP) of the legal entity; and

e) a photocopy of the Taxpayer Identification Number (NPWP) of each member of the board of directors and member of the board of commissioners for Limited Liability Company legal entities or equivalent positions for other legal entities.

In the event that the shareholder is a Local Government, the document stating the identity is a document from the head of the region or a party appointed to represent the local government;

ownership data in the form of a list of shareholders along with details of the size of each shareholding for Limited Liability Company legal entities, a recapitulation of basic and mandatory savings for each member and a list of gifts for Cooperative legal entities, or a list of assets for foundation legal entities or other legal entities, except for local governments;
financial reports including the balance sheet, profit and loss statement, cash flow statement, statement of changes in equity, and notes to the financial statements, except for local governments;
documents regarding the plan for the direction and strategy of BPR development for at least 3 (three) years since the BPR operated as a guide for the healthy development of the BPR, which also includes regional economic development that considers financing for productive Micro and Small Enterprises (UMK) by considering regional potential and is intended for the local community;
a stamped declaration letter from all members of the board of directors or members of the board of commissioners or management of the concerned legal entity stating that the funds used:

a) do not originate from loans or financing facilities in any form from banks and/or other parties; and/or

b) do not originate from and are not for money laundering and/or terrorism financing or the proliferation of weapons of mass destruction.

In the event that the BPR shareholder is a local government, the declaration letter is replaced with a Head of Region Decision Letter stating that the source of capital injection funds has been budgeted in the Regional Revenue and Expenditure Budget (APBD) and has been approved by the Regional House of Representatives (DPRD);

a stamped declaration letter from the legal entity signed by all members of the board of directors and members of the board of commissioners or management, which at least contains:

a) a commitment to comply with laws and regulations, particularly in the banking sector, and supporting the policies of the Financial Services Authority (OJK);

b) a commitment to take necessary measures in the event the BPR faces capital or liquidity difficulties in conducting its business activities;

c) does not have non-performing loans and/or financing;

d) does not transfer the ownership of BPR shares held, within a certain period (minimum 5 (five) years), except based on a decision of the Financial Services Authority (OJK);

e) is willing to strengthen capital, in the event required by the Financial Services Authority (OJK);

f) is not currently undergoing legal proceedings and/or a suitability and propriety assessment process at a Licensed Financial Institution (LJK);

a stamped declaration letter from each member of the board of directors and each member of the board of commissioners of the legal entity, which at least states that the concerned party:

a) is committed to complying with laws and regulations, particularly in the banking sector, and supporting the policies of the Financial Services Authority (OJK);

b) has never been sentenced for proven criminal acts that have been decided by a court and have acquired permanent legal force, in the form of:

i. criminal acts in the financial services sector whose sentence has been completed within the last 20 (twenty) years prior to the application;

c) is not currently prohibited from becoming a Principal Party, which among others is listed in the failed list, suspected terrorist list, terrorist organization list, and financing of proliferation of weapons of mass destruction;

d) has never been declared bankrupt and/or has never been a shareholder, member of the board of directors, and member of the board of commissioners who was declared guilty causing a company to be declared bankrupt based on a court decision within the last 5 (five) years prior to the application;

e) does not have non-performing loans and/or financing;

f) is not currently undergoing legal proceedings; and

a stamped declaration letter from the legal entity signed by all members of the board of directors and members of the board of commissioners or management, which at least states that the concerned party:

a) will not commit and/or repeat acts and/or actions that cause the concerned party to be included as a party prohibited from becoming a Principal Party (for candidates who were previously prohibited from becoming a Principal Party);

b) will not engage in certain activities that are estimated to worsen the financial and non-financial conditions of the BPR; and

c) does not accept the provision of funds and/or any facilities that are not reasonable from the BPR;

Financial reports of shareholders with legal entity status include the balance sheet, profit and loss statement, cash flow statement, statement of changes in equity, and notes to the financial statements at the latest position on the date of the increase in paid-up capital or at the end of the month before the date of the increase in paid-up capital.
A letter of receipt of notification of data changes and/or approval of articles of association changes from the competent authority, attached with a copy of the deed of change of share ownership and/or change of articles of association.

We, who sign below, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Credit Banks to be submitted to the Financial Services Authority in the context of submitting reports on the increase in paid-up capital and/or changes in share ownership that do not result in changes to the Principal Shareholder (PSP).

(City), (date-month-year)
(Signature above sufficient stamp)
(Full Name of BPR Board of Directors)

Part L
DOCUMENT CHECKLIST IN THE FRAMEWORK OF
APPLICATION FOR PERMISSION TO OPEN A BRANCH OFFICE No. Description Completeness Yes No Remarks

Document on the analysis of potential and feasibility of opening a Branch Office as referred to in Appendix Part D;
Proof of operational readiness for the opening of a Branch Office, among others in the form of:

a. a list of fixed assets and inventory;

b. organizational structure and human resources;

c. photos and/or videos of the office building, room layout, and adequate office building security facilities;

d. documents showing the readiness of information system technology; and

e. proof of office building control in the form of:

proof of ownership (SHM/SHGB) in the event the building is owned independently;
an office building lease agreement or a note of agreement on the use of the office building supported by:

a) proof of ownership from the lessor party;

and/or

lease,

in the event obtained through leasing.

(City), (date-month-year)
(Signature above sufficient stamp)
(Full Name of BPR Board of Directors)

Part M
DOCUMENT CHECKLIST IN THE FRAMEWORK OF
APPLICATION FOR RELOCATION OF HEAD OFFICE ADDRESS AND/OR BRANCH OFFICE ADDRESS No. Description Completeness Yes No Remarks

Reasons for relocating the head office and/or Branch Office address;
Analysis of the potential and feasibility of relocating the head office and/or Branch Office address as referred to in Appendix Part D.
in the event that the relocation of the head office and/or Branch Office address impacts an increase in risk and changes in the BPR's competitiveness;
Proof of settlement or transfer of claims and obligations of the head office and/or Branch Office;
Proof of operational readiness including facilities which covers:

a. a list of fixed assets and inventory;

b. photos and/or videos of the office building, room layout, and adequate office building security facilities;

c. proof of office building control in the form of:

proof of ownership (SHM/SHGB) in the event the building is owned independently;
an office building lease agreement or a note of agreement on the use of the office building supported by:

a) proof of ownership from the lessor party;

and/or

lease,

in the event obtained through leasing; and

d. proof of the announcement of the plan to relocate the head office and/or Branch Office address.

We, who sign below, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Credit Banks to be submitted to the Financial Services Authority in the context of applying for permission to relocate the head office and/or Branch Office address.

(City), (date-month-year)
(Signature above sufficient stamp)
(Full Name of BPR Board of Directors)

Part N
DOCUMENT CHECKLIST IN THE FRAMEWORK OF APPLICATION FOR PERMISSION TO INCREASE OFFICE STATUS No. Description Completeness Yes No Remarks

Documents on the analysis of considerations for increasing office status, among others include:

a. financial projections of the Branch Office for the next 12 (twelve) months, including plans for fund collection and credit disbursement; and

b. products and services provided, including promotional strategies and approaches to the target market.

Proof of operational readiness of the Branch Office, among others in the form of:

a. a list of fixed assets and inventory;

b. organizational structure and human resources;

c. photos and/or videos of the office building, room layout, and adequate office building security facilities;

d. documents showing the readiness of information system technology; and

e. proof of office building control in the form of:

proof of ownership (SHM/SHGB) in the event the building is owned independently;
an office building lease agreement or a note of agreement on the use of the office building supported by:

a) proof of ownership from the lessor party;

and/or

lease,

in the event obtained through leasing.

We, who sign below, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Credit Banks to be submitted to the Financial Services Authority in the context of applying for permission to increase the office network status from a Cash Office to a Branch Office.

(City), (date-month-year)
(Signature above sufficient stamp)
(Full Name of BPR Board of Directors)

Part O
DOCUMENT CHECKLIST IN THE FRAMEWORK OF APPLICATION FOR PERMISSION TO DECREASE OFFICE NETWORK STATUS No. Description Completeness Yes No Remarks

Reasons for decreasing office status;
Proof of settlement or transfer of Branch Office claims to customers and other parties;
Proof of operational readiness of the Cash Office, in the form of:

a. a list of fixed assets and inventory;

b. organizational structure and human resources;

c. photos and/or videos of the office building, room layout, and adequate office building security facilities; and/or

d. proof of office building control in the form of:

proof of ownership (SHM/SHGB) in the event the building is owned independently;
an office building lease agreement or a note of agreement on the use of the office building supported by:

a) proof of ownership from the lessor party;

and/or

lease,

in the event obtained through leasing.

We, who sign below, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Credit Banks to be submitted to the Financial Services Authority in the context of applying for permission to decrease the office network status.

(City), (date-month-year)
(Signature above sufficient stamp)
(Full Name of BPR Board of Directors)

Part P
DOCUMENT CHECKLIST IN THE FRAMEWORK OF APPLICATION FOR APPROVAL TO CLOSE A BRANCH OFFICE No. Description Completeness Yes No Remarks

Reasons for closing the Branch Office;
Proof of announcement of the plan to close the Branch Office;
Proof of settlement of all obligations to customers and other parties related to the closure of the Branch Office, at least in the form of documents showing the settlement of obligations to customers or the transfer of Branch Office customer administration to another Branch Office or another bank with customer approval;
Proof of settlement of all assets, including foreign currency assets in the event the Branch Office conducts foreign currency exchange business activities;
Projection of the Branch Office's financial position report showing that all obligations of the Branch Office to customers and other parties have been settled; and
A declaration letter from all members of the BPR Board of Directors stating that:

a. the BPR has settled all obligations to customers and other parties related to the closure of the BPR Branch Office and if there are claims in the future, they become the responsibility of the BPR; and

b. the BPR has settled all assets, including foreign currency assets in the event the Branch Office conducts foreign currency exchange business activities.

(City), (date-month-year)
(Signature above sufficient stamp)
(Full Name of BPR Board of Directors)

Part Q
DOCUMENT CHECKLIST IN THE FRAMEWORK OF REPORTING THE RELOCATION OF OFFICE NETWORK ADDRESS DUE TO FORCE MAJEURE No. Description Completeness Yes No Remarks

Proof of settlement or transfer of claims and obligations of the head office and/or Branch Office;
A copy of the amendment to the articles of association that has been approved by the competent authority, in the event the relocation of the head office address is carried out;
Proof of operational readiness including facilities which covers:

a. a list of fixed assets and inventory;

b. photos and/or videos of the office building, room layout, and adequate office building security facilities;

c. proof of office building control in the form of:

proof of ownership (SHM/SHGB) in the event the building is owned independently;
an office building lease agreement or a note of agreement on the use of the office building supported by:

a) proof of ownership from the lessor party;

and/or

lease,

in the event obtained through leasing.

We, who sign below, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Credit Banks to be submitted to the Financial Services Authority in the context of reporting the relocation of the head office/Branch Office address due to force majeure.

(City), (date-month-year)
(Signature above sufficient stamp)
(Full Name of BPR Board of Directors)

Part R
DOCUMENT CHECKLIST FOR APPLICATION TO CONFIRM USE OF BPR BUSINESS LICENSE WITH NEW NAME

Doc. No.	Completeness	Yes	No
1.	Reason for name change;	☐	☐
2.	Copy of the deed of amendment of the Articles of Association;	☐	☐
3.	Proof of approval for the amendment of the Articles of Association from the competent authority;	☐	☐
4.	Documents, forms, and instruments used by the BPR with the new name;	☐	☐
5.	Proof of announcement of the name change to the public; and	☐	☐
6.	Minutes of the destruction of unused deposit receipts, savings books, forms, and instruments of the BPR with the old name.	☐	☐

We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions, and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Credit Banks to be submitted to the Financial Services Authority in the context of an application to confirm the use of the BPR business license with a new name.

(City), (date-month-year)
(Signature above stamp duty is sufficient)
(Full Name of BPR Board of Directors)

Part S
DOCUMENT CHECKLIST FOR APPLICATION FOR PRINCIPAL APPROVAL OF CHANGE IN LEGAL ENTITY FORM

Doc. No.	Completeness	Yes	No
1.	Minutes of the General Meeting of Shareholders (GMS) which at least contain approval for:	☐	☐
	a. change to a new legal entity form and dissolution of the old legal entity;	☐	☐
	b. transfer of all rights and obligations from the old legal entity to the new legal entity;	☐	☐
	c. list of shareholders of the new legal entity; and	☐	☐
	d. composition of the Board of Directors and/or Board of Commissioners of the new legal entity;	☐	☐
2.	Reason for changing the legal entity form of the BPR;	☐	☐
3.	Draft deed of establishment of the new legal entity containing the Articles of Association;	☐	☐
4.	Plan for the transfer of all rights and obligations from the old legal entity to the new legal entity;	☐	☐
5.	Ownership data accompanied by supporting documents, for BPRs with legal entity status:	☐	☐
	a. Limited Liability Company (Perseroan Terbatas), Regional Public Company, or Regional Corporation, namely a list of shareholders along with details of each share ownership; or	☐	☐
	b. Cooperative, namely a list of members along with details of the amount of basic savings and mandatory savings; and	☐	☐
6.	List of candidates for members of the Board of Directors and candidates for members of the Board of Commissioners accompanied by requirement documents in accordance with the Financial Services Authority Circular Letter regarding the assessment of competence and propriety for controlling shareholders, candidates for members of the board of directors, and candidates for members of the board of commissioners of banks, in the event of changes.	☐	☐

We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions, and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Credit Banks to be submitted to the Financial Services Authority in the context of an application for principal approval of the change in legal entity form.

(City), (date-month-year)
(Signature above stamp duty is sufficient)
(Full Name of BPR Board of Directors)

Part T
DOCUMENT CHECKLIST FOR APPLICATION FOR TRANSFER OF BPR BUSINESS LICENSE FROM OLD LEGAL ENTITY TO NEW LEGAL ENTITY

Doc. No.	Completeness	Yes	No
1.	Copy of the deed of establishment of the new legal entity containing the Articles of Association and approval from the competent authority;	☐	☐
2.	Ownership data (in the event of changes) accompanied by supporting documents, for BPRs with legal entity status:	☐	☐
	a. Limited Liability Company (Perseroan Terbatas), Regional Public Company, or Regional Corporation, namely a list of shareholders along with details of each share ownership; or	☐	☐
	b. Cooperative, namely a list of members along with details of the amount of basic savings and mandatory savings;	☐	☐
3.	List of candidates for members of the Board of Directors and candidates for members of the Board of Commissioners (in the event of replacement) accompanied by requirement documents in accordance with the Financial Services Authority Circular Letter regarding the assessment of competence and propriety for controlling shareholders, candidates for members of the board of directors, and candidates for members of the board of commissioners of banks;	☐	☐
4.	Copy of the notarial minutes regarding the transfer of all rights and obligations from the old legal entity to the new legal entity;	☐	☐
5.	Minutes or GMS minutes containing approval for:	☐	☐
	a. change to a new legal entity form and dissolution of the old legal entity;	☐	☐
	b. transfer of all rights and obligations from the old legal entity to the new legal entity;	☐	☐
	c. composition of the Board of Directors and/or Board of Commissioners of the new legal entity; and	☐	☐
	d. list of shareholders of the new legal entity,	☐	☐
	in the event of changes to GMS decisions; and	☐	☐
6.	Example of forms or instruments that will be used by the new legal entity.	☐	☐

We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions, and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Credit Banks to be submitted to the Financial Services Authority in the context of an application for the transfer of the business license from the old legal entity to the new legal entity.

(City), (date-month-year)
(Signature above stamp duty is sufficient)
(Full Name of BPR Board of Directors)

Part U
DOCUMENT CHECKLIST FOR APPLICATION FOR APPROVAL OF PREPARATION FOR REVOCATION OF BUSINESS LICENSE AT THE REQUEST OF SHAREHOLDERS

Doc. No.	Completeness	Yes	No
1.	Minutes of the GMS which at least contain:	☐	☐
	a. plan for revocation of business license at the request of BPR shareholders, including decisions approving the dissolution of the BPR legal entity;	☐	☐
	b. order to the Board of Directors to settle all BPR obligations; and	☐	☐
	c. commitment to place escrow funds to settle BPR obligations.	☐	☐
2.	Reason for revocation of business license at the request of BPR shareholders.	☐	☐
3.	Plan for settling all BPR obligations to customers, creditors, employees, and other parties, accompanied by:	☐	☐
	a. BPR cash flow projections for a period of at least 6 (six) months ahead; and	☐	☐
	b. proof of placement of escrow funds in the form of deposits at a general bank in Indonesia, by stating the name “Commissioners of the Financial Services Authority q.q. name of shareholder and/or BPR PSP”, and stating that the withdrawal can only be done after receiving approval from the Financial Services Authority.	☐	☐
4.	Latest financial report, accompanied by BPR financial report projections calculated from the last reporting period at the time of submitting the application until the projection of the financial position report on the date of closure.	☐	☐
5.	Proof of tax settlement and other obligations to the state.	☐	☐

We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions, and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Credit Banks to be submitted to the Financial Services Authority in the context of an application for approval of preparation for revocation of business license at the request of shareholders.

(City), (date-month-year)
(Signature above stamp duty is sufficient)
(Full Name of BPR Board of Directors)

Part V
DOCUMENT CHECKLIST FOR APPLICATION FOR DECISION ON REVOCATION OF BPR BUSINESS LICENSE

Doc. No.	Completeness	Yes	No
1.	Report and proof of implementation of the cessation of BPR business activities;	☐	☐
2.	Proof of announcement regarding the plan for dissolution of the legal entity and the plan for settling BPR obligations;	☐	☐
3.	Report and proof of implementation of settling BPR obligations, such as settling BPR obligations to customers, creditors, employees, and other parties, tax settlement, and other obligations to the state;	☐	☐
4.	Audit report from a public accountant on the final financial position report of the BPR;	☐	☐
5.	Final financial position report of the BPR; and	☐	☐
6.	Notarized statement from BPR shareholders stating that all BPR obligations have been settled and in the event of future claims, they become the responsibility of the shareholders.	☐	☐

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

We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual conditions, and has been completed with documents in accordance with Financial Services Authority Regulation Number 62/POJK.03/2020 concerning Rural Credit Banks to be submitted to the Financial Services Authority in the context of an application for the decision on revocation of the business license.

(City), (date-month-year)
(Signature above stamp duty is sufficient)
(Full Name of BPR Board of Directors)

Determined in Jakarta on 16 December 2020
CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Financial Services Authority Regulation Number 62 of 2020 Concerning Rural Credit Banks

Lineage: In force