Financial Services Authority Regulation Number 66/POJK.03/2016 Concerning Minimum Capital Provision and Minimum Core Capital Fulfillment for Sharia People's Financing Banks

FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 66 /POJK.03/2016
CONCERNING
MINIMUM CAPITAL PROVISION AND MINIMUM CORE CAPITAL FULFILLMENT FOR SHARIA PEOPLE'S FINANCING BANKS BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: a. that in order to realize a healthy, strong, and productive Sharia People's Financing Bank industry, it is necessary to adjust the capital structure to align with best banking practices; b. that the adjustment of the capital structure of the aforementioned Sharia People's Financing Banks is intended to enhance the ability of Sharia People's Financing Banks to provide funds for the real sector, especially for micro and small businesses;
c. that the institutional strengthening of Sharia People's Financing Banks needs to be supported by strong capital;
d. that in relation to the above, it is necessary to establish the amount of capital with strong characteristics to support institutional strengthening and the ability to absorb risks for Sharia People's Financing Banks in the form of minimum core capital for Sharia People's Financing Banks; e. that in relation to letters a through d above, it is necessary to adjust the provisions regarding the Minimum Capital Provision Obligation for Sharia People's Financing Banks in the Financial Services Authority Regulation;

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY

Recalling: 1. Law Number 21 of 2008 concerning Sharia Banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette of the Republic of Indonesia Number 4867);
2. 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);

RESOLVES:
Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING MINIMUM CAPITAL PROVISION AND MINIMUM CORE CAPITAL FULFILLMENT FOR SHARIA PEOPLE'S FINANCING BANKS.

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

1. Sharia People's Financing Bank, hereinafter abbreviated as BPRS, is a Sharia People's Financing Bank as referred to in Law Number 21 of 2008 concerning Sharia Banking.
2. Minimum Capital Provision Obligation, hereinafter abbreviated as KPMM, is the capital ratio against Risk-Weighted Assets that must be provided by BPRS.
3. Risk-Weighted Assets, hereinafter abbreviated as ATMR, is the total of assets in the balance sheet given weights according to the risk level inherent in each asset item according to regulations.
4. Foreclosed Collateral, hereinafter abbreviated as AYDA, is part or all of the collateral purchased by BPRS, either through auction or outside of auction, based on voluntary surrender by the collateral owner or based on the granting of power of attorney to sell from the collateral owner in the event that the financing customer has been classified as non-performing, with the obligation to be liquidated.
5. General Meeting of Shareholders, hereinafter abbreviated as RUPS, is the General Meeting of Shareholders as referred to in Law Number 40 of 2007 concerning Limited Liability Companies.
6. Provision for Write-off of Productive Assets, hereinafter abbreviated as PPAP, is a reserve that must be formed at a certain percentage of the debit balance based on the classification of Productive Asset Quality.

CHAPTER II
MINIMUM CAPITAL PROVISION OBLIGATION
Article 2
BPRS is required to provide minimum capital calculated using the KPMM ratio of at least 12% (twelve percent) of ATMR as of January 1, 2020.

Article 3
(1) Capital consists of:
a. core capital (tier 1) which includes:

1. core capital primary;
2. core capital additional; and
   b. supplementary capital (tier 2).

(2) Supplementary capital as referred to in paragraph (1) letter b can only be counted for at most 100% (one hundred percent) of core capital.

Article 4
BPRS is required to provide core capital of at least 8% (eight percent) of ATMR as of January 1, 2020.

Article 5
(1) Core capital primary consists of:
a. paid-in capital; and b. additional capital reserves, which consist of:

1. premium, which is the excess of paid-in capital received by BPRS as a result of share prices exceeding their nominal value;
2. paid-in capital funds, which are funds that have been fully paid for the purpose of capital increase but are not yet supported by complete requirements to be classified as paid-in capital such as the implementation of RUPS or approval of the articles of association from the competent authority, meeting the following requirements:
   a) placed in the form of deposits at Sharia Commercial Banks and/or Sharia Business Units in Indonesia by stating in the name "Commissioners of the Financial Services Authority q.q. (name of BPRS)", and stating the name of the additional capital depositor and information that withdrawal can only be done after obtaining approval from the Financial Services Authority. Profits obtained from the placement of paid-in capital funds in the form of deposits at Sharia Commercial Banks or Sharia Business Units become BPRS income; b) placed in the form of deposits at the BPRS concerned by stating in the name “Commissioners of the Financial Services Authority q.q. (name of the shareholder depositor)” and stating information that withdrawal can only be done after obtaining approval from the Financial Services Authority; c) paid-in capital increases placed in the form of deposits at the BPRS concerned as referred to in letter b) only apply to BPRS that are not under special supervision and paid-in capital increases are made by the shareholders of the BPRS concerned; d) have been examined by the Financial Services Authority and declared to have met the requirements; e) no profit sharing and/or dividends are given on the aforementioned paid-in capital funds; f) cannot be withdrawn by shareholders or prospective shareholders.
3. donation capital, which is donations originating from BPRS owners and/or external parties in the form of funds or other assets including share returns to owners;
4. general reserves, which are reserves formed from the allocation of retained earnings or net profit after tax deduction for the purpose of strengthening capital and have obtained RUPS approval;
5. purpose reserves, which are reserves formed from the allocation of retained earnings or net profit after tax deduction whose usage purpose has been established and have obtained RUPS approval;
6. prior years' profits, which are prior years' profits after tax deduction unless permitted to be compensated with losses according to tax regulations and whose usage has not been determined by RUPS; and
7. current year profits, which are profits obtained in the current fiscal year after being considered with the shortfall in PPAP formation, counted for at most 50% (fifty percent) after tax estimation, unless permitted to be compensated with losses according to tax regulations.

(2) Additional core capital components must meet the following requirements:
a. are not guaranteed by the BPRS concerned and have been fully paid; b. have the same position as paid-in capital in the event that BPRS losses exceed prior years' profits and reserves included in core capital primary, even if BPRS has not been liquidated;
c. funding sources do not originate from the BPRS concerned, either directly or indirectly;
d. do not have a maturity date and do not contain requirements requiring repayment by BPRS in the future; e. do not have the right to receive dividend payments; f. have obtained approval from the Financial Services Authority to be counted as capital components; g. can be converted into ordinary shares which is clearly stated in the agreement documents by meeting the requirements and procedures for paid-in capital increases as regulated in Financial Services Authority Regulations regarding BPRS; h. repayment or settlement must obtain approval from the Financial Services Authority and with such repayment or settlement, BPRS capital remains healthy and does not cause capital ratios to fail to meet the provisions as referred to in Article 2 and Article 4.

(3) Additional core capital as referred to in paragraph (2):
a. receives a yield rate at most equal to the lowest third-party fund yield rate at that BPRS; b. does not receive yields if BPRS is in a loss state or has insufficient profits to pay yields, and payments are not accumulated in subsequent fiscal years.

(4) Core capital primary as referred to in paragraph (1) is calculated with deduction factors including:
a. deferred tax calculation; b. goodwill;
c. discount;
d. AYDA that has exceeded a period of 1 (one) year since takeover at the value recorded in the BPRS balance sheet; e. prior years' losses; and f. current year losses.

Article 6
(1) BPRS is required to complete the administrative requirements for paid-in capital funds no later than 90 (ninety) working days from the date of approval by the Financial Services Authority. (2) BPRS that already have paid-in capital funds at the time this Financial Services Authority Regulation takes effect are required to immediately complete the administrative requirements for paid-in capital funds no later than December 31, 2020. (3) Paid-in capital funds are recorded as paid-in capital after BPRS meets the administrative requirements.

Article 7
(1) BPRS may receive donation capital in the form of other assets based on approval from the Financial Services Authority.
(2) Donation capital in the form of other assets as referred to in paragraph (1) must be land and buildings intended for BPRS operations and have been transferred to the name of BPRS. (3) Within a period of at most 3 (three) years after approval from the Financial Services Authority, BPRS must use the land and building assets for operational activities as referred to in paragraph (2). (4) In the event that the period as referred to in paragraph (3) has expired and BPRS has not submitted a report to the Financial Services Authority regarding the use of land and building assets for BPRS operational activities, the assets in question can no longer be counted as components of donation capital. (5) Assets as referred to in paragraph (4) can be counted as donation capital at the time the assets in question are used in BPRS operations. (6) BPRS under special supervision status as per regulations governing follow-up handling of BPRS under special supervision status cannot receive donation capital in the form of other assets as referred to in paragraph (1).

Article 8
(1) BPRS may make additional paid-in capital in the form of fixed assets based on approval from the Financial Services Authority.
(2) Fixed assets used as additional paid-in capital as referred to in paragraph (1) must be land and buildings intended for BPRS operations and have been transferred to the name of BPRS. (3) Within a period of at most 3 (three) years after approval from the Financial Services Authority, BPRS must use the fixed assets for operational activities as referred to in paragraph (2). (4) BPRS that already have paid-in capital in the form of fixed assets and have not been used in BPRS operations at the time this Financial Services Authority Regulation takes effect must use the assets in question in BPRS operations no later than 3 (three) years from the time this Financial Services Authority Regulation takes effect. (5) In the event that the periods as referred to in paragraph (3) and paragraph (4) have expired and BPRS has not submitted a report to the Financial Services Authority regarding the use of fixed assets for BPRS operational activities, the fixed assets can no longer be counted as components of paid-in capital. (6) Fixed assets as referred to in paragraph (5) can be counted as additional paid-in capital at the time the fixed assets are used in BPRS operations. (7) BPRS under special supervision status as per regulations governing follow-up handling of BPRS under special supervision status cannot receive additional paid-in capital in the form of fixed assets as referred to in paragraph (1).

Article 9
(1) Supplementary capital consists of:
a. capital components meeting the requirements:

1. are not guaranteed by the BPRS concerned and have been fully paid;
2. have the same position as capital in the event that BPRS losses exceed prior years' profits and reserves included in core capital primary, even if BPRS has not been liquidated;
3. funding sources do not originate from the BPRS concerned directly or indirectly;
4. have an agreement containing at least the following clauses:
   a) stating payment of principal and/or yields; b) do not contain requirements for acceleration of principal and/or yield payments; c) principal and/or yield payments are deferred and accumulated between periods if such payments could cause the KPMM ratio to fail to meet the provisions as referred to in Article 2; d) claim rights in the event of liquidation apply last; e) have a maturity of 5 (five) years or more and can only be settled after obtaining approval from the Financial Services Authority.
5. have obtained approval from the Financial Services Authority to be counted as supplementary capital components;
6. early settlement must obtain approval from the Financial Services Authority with the condition that after such settlement, BPRS capital remains healthy;
   b. surplus from revaluation of fixed assets; and
   c. general reserves from PPAP at most 1.25% (one point two five percent) of ATMR.

(2) Supplementary capital components as referred to in paragraph (1) letter a are at most 50% (fifty percent) of core capital.

Article 10
The calculation of ATMR as referred to in Article 2, which must be calculated by BPRS, includes assets in the balance sheet.

Article 11
In the calculation of ATMR:
a. the excess of general reserves from PPAP, which must be calculated from the limit as referred to in Article 9 paragraph (1) letter c, can be counted as a deduction factor for ATMR calculation. b. AYDA that has exceeded a period of 1 (one) year since takeover is not counted in the ATMR calculation.

Article 12
BPRS is prohibited from distributing profits if such distribution causes BPRS's capital condition to fail to reach the capital ratio as referred to in Article 2 and Article 4.

CHAPTER III
MINIMUM CORE CAPITAL
Article 13
The minimum core capital of BPRS is set at IDR 6,000,000,000.00 (six billion rupiah) with the following provisions:

1. BPRS with core capital less than IDR 3,000,000,000.00 (three billion rupiah) is required to meet the minimum core capital of IDR 3,000,000,000.00 (three billion rupiah) no later than December 31, 2020.
2. BPRS as referred to in item 1 is required to meet the minimum core capital of IDR 6,000,000,000.00 (six billion rupiah) no later than December 31, 2025.
3. BPRS with core capital of at least IDR 3,000,000,000.00 (three billion rupiah) but less than IDR 6,000,000,000.00 (six billion rupiah) is required to meet the minimum core capital of IDR 6,000,000,000.00 (six billion rupiah) no later than December 31, 2020.

Article 14
BPRS that do not meet the minimum core capital requirements as referred to in Article 13 cannot receive donation capital and additional paid-in capital in the form of fixed assets.

Article 15
(1) BPRS is required to maintain the minimum core capital amount of at least IDR 6,000,000,000.00 (six billion rupiah) after the periods as referred to in Article 13 item 2 and item 3. (2) BPRS is prohibited from distributing profits in the event:
a. such distribution causes core capital to decrease to less than IDR 6,000,000,000.00 (six billion rupiah); or b. BPRS has not met the minimum core capital of IDR 6,000,000,000.00 (six billion rupiah). (3) BPRS is prohibited from repaying or settling additional core capital components if the repayment or settlement causes the minimum core capital of BPRS to decrease to less than IDR 6,000,000,000.00 (six billion rupiah). (4) In the event that BPRS cannot maintain minimum core capital of at least IDR 6,000,000,000.00 (six billion rupiah) as referred to in paragraph (1), BPRS is required to increase core capital to at least IDR 6,000,000,000.00 (six billion rupiah) within a period of at most 6 (six) months from:
a. monthly reports submitted to the Financial Services Authority showing core capital below IDR 6,000,000,000.00 (six billion rupiah); or b. the date of the minutes of the Financial Services Authority examination results showing core capital below IDR 6,000,000,000.00 (six billion rupiah).

Article 16
BPRS that receive business licenses from the Financial Services Authority with paid-in capital less than IDR 6,000,000,000.00 (six billion rupiah) after the provisions of this regulation take effect are required to meet the minimum core capital amount no later than 5 (five) years after obtaining the business license from the Financial Services Authority.

CHAPTER IV
OTHERS
Article 17
(1) BPRS that at the time this regulation takes effect do not meet the capital ratio as referred to in Article 2 and Article 4 and/or the minimum core capital amount as referred to in Article 13 are required to formulate a plan to meet the capital ratio and/or minimum core capital in the form of an action plan with RUPS approval. (2) The action plan as referred to in paragraph (1) is required to be submitted to the Financial Services Authority no later than 6 (six) months after the provisions of this regulation take effect.

Article 18
In the event that the deadline for submitting the action plan as referred to in Article 17 paragraph (2) falls on a Saturday or holiday, the submission of the action plan is done on the first working day after the aforementioned Saturday or holiday.

CHAPTER V
SANCTIONS
Article 19
BPRS that do not meet the capital ratio as referred to in Article 2 and Article 4 are subject to administrative sanctions in the form of:
a. written reprimand; b. downgrade of health level;
c. prohibition of opening office networks; and/or
d. temporary suspension of part of BPRS's operational activities.

Article 20
BPRS that do not complete the administrative requirements for paid-in capital funds within the period as referred to in Article 6 paragraph (1) and paragraph (2) are subject to administrative sanctions:
a. paid-in capital funds cannot be counted as core capital components; and b. postponement of dividend distribution on all share ownership from shareholders who made capital contributions; until the administrative requirements are met.

Article 21
BPRS that violate the provisions as referred to in Article 12, Article 15 paragraph (2) and paragraph (3), and Article 17 are subject to administrative sanctions:
a. written reprimand; and/or b. downgrade of health level.

Article 22
(1) BPRS that do not meet the minimum core capital amount as referred to in Article 13 item 1 and item 2 are subject to administrative sanctions:
a. downgrade of BPRS health level; b. prohibition of opening office networks;
c. prohibition of conducting Foreign Exchange Exchange Business and electronic banking device services;
d. restriction of fund distribution area to one regency/city same as the location of the BPRS office; and e. restriction of remuneration or other forms equivalent to it to members of the Board of Commissioners and/or Board of Directors of BPRS, or payments to related parties. (2) BPRS that have met the minimum core capital as referred to in Article 13 item 1 but have not reached IDR 6,000,000,000.00 (six billion rupiah) or BPRS that have not met the minimum core capital of IDR 6,000,000,000.00 (six billion rupiah) as referred to in Article 13 item 3 as of December 31, 2020 are subject to administrative sanctions:
a. prohibition of opening office networks; b. prohibition of conducting Foreign Exchange Exchange Business and electronic banking device services; and
c. restriction of fund distribution area to one regency same as the location of the BPRS office.
(3) BPRS that do not meet the minimum core capital of IDR 6,000,000,000.00 (six billion rupiah) as referred to in Article 13 item 3 until December 31, 2025, are subject to administrative sanctions as referred to in paragraph (1). (4) BPRS that cannot maintain minimum core capital of at least IDR 6,000,000,000.00 (six billion rupiah) as referred to in Article 15 paragraph (4), after December 31, 2025, are subject to administrative sanctions as referred to in paragraph (1). (5) BPRS that do not meet the minimum core capital of IDR 6,000,000,000.00 (six billion rupiah) within the period as referred to in Article 16 but before the deadline for meeting minimum core capital on December 31, 2025 are subject to administrative sanctions:
a. prohibition of opening office networks; b. prohibition of conducting Foreign Exchange Exchange Business and electronic banking device services; and
c. restriction of fund distribution area to one regency same as the location of the BPRS office.
(6) BPRS that do not meet the minimum core capital of IDR 6,000,000,000.00 (six billion rupiah) within the period as referred to in Article 16 and the deadline for meeting minimum core capital exceeds December 31, 2025, are subject to administrative sanctions as referred to in paragraph (1).

CHAPTER VI
TRANSITIONAL PROVISIONS
Article 23
(1) Capital components and requirements as referred to in Article 3, Article 5 paragraph (2), Article 5 paragraph (3), Article 5 paragraph (4), and Article 9 of this Financial Services Authority Regulation take effect as of January 1, 2020. (2) BPRS that have supplementary capital components in the form of loan capital and subordinated investments that existed before this Financial Services Authority Regulation takes effect must submit an application for approval to the Financial Services Authority accompanied by agreement documents meeting the requirements as stated in Article 5 paragraph (2) and paragraph (3) or Article 9 paragraph (1) letter a before December 31, 2019 to be recognized as additional core capital components or supplementary capital components. (3) The prohibition of profit distribution as referred to in Article 12 and Article 15 paragraph (2) of this Financial Services Authority Regulation takes effect for the first time for the year 2017 profits. (4) The calculation of ATMR as referred to in Article 11 of this Financial Services Authority Regulation takes effect as of January 1, 2020.

CHAPTER VII
CLOSING PROVISIONS
Article 24
Implementation details of this Financial Services Authority Regulation are regulated by a Circular Letter of the Financial Services Authority.

Article 25
At the time this Financial Services Authority Regulation takes effect, Bank Indonesia Regulation Number 8/22/PBI/2006 dated October 5, 2006 concerning Minimum Capital Provision for People's Credit Banks Based on Sharia Principles (State Gazette of the Republic of Indonesia Year 2006 Number 79, Supplement to the State Gazette of the Republic of Indonesia Number 4648) is repealed and declared invalid except for Article 2, Article 3, Article 4, and Article 5 which are declared to remain in effect until December 31, 2019.

Article 26
At the time this Financial Services Authority Regulation takes effect, all implementation details of Bank Indonesia Regulation Number 8/22/PBI/2006 concerning Minimum Capital Provision for People's Credit Banks Based on Sharia Principles (State Gazette of the Republic of Indonesia Year 2006 Number 79, Supplement to the State Gazette of the Republic of Indonesia Number 4648) are declared to remain in effect insofar as they do not conflict with the provisions in this Financial Services Authority Regulation.

Article 27
This Financial Services Authority Regulation takes effect on the date of enactment.

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

Established in Jakarta on 23 December 2016

CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD

Promulgated in Jakarta on 28 December 2016

MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 299

A copy in accordance with the original
Director of Law 1
Ministry of Law signed
Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 66 /POJK.03/2016
ON
MINIMUM CAPITAL PROVISION OBLIGATIONS AND MINIMUM CORE CAPITAL FULFILLMENT FOR SHARIA MICROFINANCE BANKS

I. GENERAL

BPRS plays an important role in the economy, especially at the local level. To be able to increase this role, BPRS must operate at a certain economic scale and have adequate capacity to absorb risk. By operating at an economic scale, BPRS will be able to compete with other financial service institutions in serving the community. To achieve this economic scale, BPRS is required to have capital in a certain amount. The paid-up capital that must be fulfilled by BPRS at the time of establishment is not always sufficient to achieve the aforementioned economic scale if BPRS incurs losses, so it is necessary to establish minimum core capital for BPRS.

Furthermore, BPRS whose main activity is providing services to MSMEs and communities in remote areas have specific characteristics, including less efficient operations and difficulty in obtaining financial assistance if they have structural problems, causing BPRS to be supported by a higher Minimum Capital Provision ratio so that it is expected to be able to absorb the potential risks it faces. Therefore, it is necessary to refine capital ratios, including the Minimum Capital Provision ratio and the core capital ratio.

In order to increase BPRS' ability to absorb risk, the quality of BPRS capital is improved by adding core capital instruments to the core capital components and recognizing excess general impairment provision formation as a reduction factor in the calculation of Risk-Weighted Assets (ATMR).

In relation to these matters, it is necessary to regulate again the provisions regarding Minimum Capital Provision Obligations for Sharia Microfinance Banks in a Financial Services Authority Regulation.

II. ARTICLE BY ARTICLE

Article 1
It is clear enough.

Article 2
It is clear enough.

Article 3
It is clear enough.

Article 4
It is clear enough.

Article 5
Paragraph (1)
Letter a
What is meant by "paid-up capital" is capital that has been paid in real and effectively by its owners and has been approved by the Financial Services Authority and has met administrative requirements, including being recorded in the General Meeting of Shareholders (GMS) and the approval of the articles of association from the competent authority.

Letter b
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
Letter a
What is meant by "deferred tax" is a transaction that arises as a result of the application of the Financial Accounting Standards Statement (PSAK) on Income Tax Accounting.

With the exclusion of the impact of deferred tax from the calculation of profit/loss, deferred tax assets are not included in the calculation of risk-weighted assets, i.e., given a risk weight of 0% (zero percent).

Letter b
It is clear enough.

Letter c
What is meant by "disagio" is the shortfall difference between the capital contributions received by BPRS as a result of the market price of issued shares being lower than their nominal value.

Letter d
It is clear enough.

Letter e
It is clear enough.

Letter f
It is clear enough.

Article 6
Paragraph (1)
Administrative completion in the form of a report proof or approval letter from the competent authority in accordance with regulations. Proof of report for articles of association that do not require approval from the competent authority must be followed up with the submission of a report receipt letter from the competent authority.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Article 7
It is clear enough.

Article 8
It is clear enough.

Article 9
Paragraph (1)
Number 1
It is clear enough.

Number 2
It is clear enough.

Number 3
It is clear enough.

Number 4
It is clear enough.

Number 5
It is clear enough.

Number 6
The submission of an application for approval of supplementary capital components to the Financial Services Authority is carried out by BPRS by submitting a repayment program.

Letter b
It is clear enough.

Letter c
It is clear enough.

Paragraph (2)
It is clear enough.

Article 10
It is clear enough.

Article 11
It is clear enough.

Article 12
What is meant by profit distribution includes, among others, payment of dividends to shareholders as well as payment of tantiems to the Board of Directors and Board of Commissioners and payment of bonuses to employees that are non-operational in nature.

Article 13
Fulfillment of minimum core capital obligations can be carried out, among others, through profit growth, addition of paid-up capital, merger, consolidation, or acquisition.

Article 14
It is clear enough.

Article 15
Paragraph (1)
It is clear enough.

Paragraph (2)
What is meant by profit distribution includes, among others, payment of dividends to shareholders as well as payment of tantiems to the Board of Directors and Board of Commissioners and payment of bonuses to employees that are non-operational in nature.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Article 16
It is clear enough.

Article 17
It is clear enough.

Article 18
It is clear enough.

Article 19
It is clear enough.

Article 20
Letter a
It is clear enough.

Letter b
Dividends whose payment is deferred can be given to shareholders after BPRS completes the administrative completeness of adding paid-up capital from the respective shareholders.

Article 21
It is clear enough.

Article 22
It is clear enough.

Article 23
It is clear enough.

Article 24
It is clear enough.

Article 25
It is clear enough.

Article 26
It is clear enough.

Article 27
It is clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5989