Financial Services Authority Regulation Number 67/POJK.05/2016 on Business Licensing and Institutional Aspects of Insurance, Sharia Insurance, Reinsurance, and Sharia Reinsurance Companies

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
FINANCIAL SERVICES AUTHABILITY REGULATION
NUMBER 67 /POJK.05/2016
ON
BUSINESS LICENSING AND INSTITUTIONAL ASPECTS OF INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES BY THE GRACE OF THE ALMIGHTY GOD THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: that in order to implement the provisions of Article 8 paragraph (4), Article 10 paragraph (4), Article 13 paragraph (3), Article 14 paragraph (4), Article 16 paragraph (3), Article 17 paragraph (3), Article 20 paragraph (5), Article 40 paragraph (6), Article 41 paragraph (4), Article 69 paragraph (2), Article 85 paragraph (2), Article 87 paragraph (2), and Article 88 paragraph (2) of Law Number 40 of 2014 concerning Insurance, it is necessary to establish a Financial Services Authority Regulation on Business Licensing and Institutional Aspects of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies; Recalling: 1. 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);
2. Law Number 40 of 2014 concerning Insurance (State Gazette of the Republic of Indonesia Year 2014 Number 337, Supplement to the State Gazette of the Republic of Indonesia Number 5618);
DECIDES:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION ON BUSINESS LICENSING AND INSTITUTIONAL ASPECTS OF INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES.

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

Company means insurance company, Sharia insurance company, reinsurance company, and Sharia reinsurance company.
Insurance is an agreement between two parties, namely the insurance company and the policyholder, which serves as the basis for the insurance company's receipt of premiums as consideration for:
a. providing compensation to the insured or policyholder for losses, damages, costs incurred, loss of profit, or legal liability to third parties that may be suffered by the insured or policyholder due to the occurrence of an uncertain event; or b. providing payments based on the death of the insured or payments based on the life of the insured with benefits whose amount has been determined and/or based on the results of fund management, as referred to in Law Number 40 of 2014 concerning Insurance.
Sharia Insurance is a collection of agreements, consisting of agreements between the Sharia insurance company and the policyholder and agreements among the policyholders, in the context of managing contributions based on Sharia principles for mutual assistance and protection by:
a. providing compensation to participants or policyholders for losses, damages, costs incurred, loss of profit, or legal liability to third parties that may be suffered by participants or policyholders due to the occurrence of an uncertain event; or b. providing payments based on the death of participants or payments based on the life of participants with benefits whose amount has been determined and/or based on the results of fund management, as referred to in Law Number 40 of 2014 concerning Insurance.
Insurance Business refers to all businesses involving risk coverage services or risk management, risk reinsurance, marketing and distribution of insurance products or Sharia insurance products, insurance or Sharia insurance consultancy and brokerage, reinsurance, or Sharia reinsurance, or insurance or Sharia insurance loss assessment, as referred to in Law Number 40 of 2014 concerning Insurance.
General Insurance Business is a risk coverage service business that provides compensation to the insured or policyholder for losses, damages, costs incurred, loss of profit, or legal liability to third parties that may be suffered by the insured or policyholder due to the occurrence of an uncertain event, as referred to in Law Number 40 of 2014 concerning Insurance.
Life Insurance Business is a business that provides risk management services by making payments to policyholders, insured persons, or other entitled parties in the event of the insured's death or survival, or other payments to policyholders, insured persons, or other entitled parties at specific times as regulated in the agreement, the amount of which has been determined and/or based on the results of fund management, as referred to in Law Number 40 of 2014 concerning Insurance.
Reinsurance Business is a risk reinsurance service business against risks faced by insurance companies, guarantee companies, or other reinsurance companies, as referred to in Law Number 40 of 2014 concerning Insurance.
Sharia General Insurance Business is a risk management business based on Sharia principles for mutual assistance and protection by providing compensation to participants or policyholders for losses, damages, costs incurred, loss of profit, or legal liability to third parties that may be suffered by participants or policyholders due to the occurrence of an uncertain event, as referred to in Law Number 40 of 2014 concerning Insurance.
Sharia Life Insurance Business is a risk management business based on Sharia principles for mutual assistance and protection by providing payments based on the death or life of participants, or other payments to participants or other entitled parties at specific times as regulated in the agreement, the amount of which has been determined and/or based on the results of fund management, as referred to in Law Number 40 of 2014 concerning Insurance.
Sharia Reinsurance Business is a risk management business based on Sharia principles for risks faced by Sharia insurance companies, Sharia guarantee companies, or other Sharia reinsurance companies, as referred to in Law Number 40 of 2014 concerning Insurance.
General Insurance Company is a company that conducts General Insurance Business.
Life Insurance Company is a company that conducts Life Insurance Business.
Reinsurance Company is a company that conducts Reinsurance Business.
Sharia General Insurance Company is a company that conducts Sharia General Insurance Business.
Sharia Life Insurance Company is a company that conducts Sharia Life Insurance Business.
Sharia Reinsurance Company is a company that conducts Sharia Reinsurance Business.
Insurance Company means General Insurance Company and Life Insurance Company.
Sharia Insurance Company means Sharia General Insurance Company and Sharia Life Insurance Company.
Sharia Unit is a working unit at the head office of an Insurance Company or Reinsurance Company that functions as the head office of offices outside the head office that conduct business based on Sharia principles.
Sharia Principles are Islamic legal principles in insurance activities based on fatwas issued by institutions having authority to issue fatwas in the field of Sharia, as referred to in Law Number 40 of 2014 concerning Insurance.
Party means an individual or business entity, whether a legal entity or a non-legal entity, as referred to in Law Number 40 of 2014 concerning Insurance.
Guarantee Fund is the assets of an Insurance Company, Sharia Insurance Company, Reinsurance Company, or Sharia Reinsurance Company that serve as the final guarantee in protecting the interests of policyholders, insured persons, or participants, in the event that an Insurance Company, Sharia Insurance Company, Reinsurance Company, or Sharia Reinsurance Company is liquidated, as referred to in Law Number 40 of 2014 concerning Insurance.
Insurance Fund is a collection of funds derived from premiums formed to meet obligations arising from issued policies or insurance claims, as referred to in Law Number 40 of 2014 concerning Insurance.
Tabarru' Fund is a collection of funds derived from participants' contributions, the mechanism of whose use is in accordance with the Sharia Insurance agreement or Sharia reinsurance agreement, as referred to in Law Number 40 of 2014 concerning Insurance.
Paid-up Capital:
a. for companies in the form of limited liability companies, is paid-up capital; or b. for companies in the form of legal entity cooperatives, is principal savings and mandatory savings.
Equity is equity based on applicable financial accounting standards in Indonesia.
Controlling Shareholder, hereinafter abbreviated as CS, means a Party that:
a. directly owns shares or capital of the Company amounting to 25% (twenty-five percent) or more of the issued shares and has voting rights; or b. directly owns shares or capital of the Company less than 25% (twenty-five percent) of the issued shares and has voting rights but can be proven to have controlled the Company, directly or indirectly.
Controller means a Party that directly or indirectly has the ability to determine the Board of Directors, Board of Commissioners, or equivalents thereof in legal entities in the form of cooperatives or joint ventures and/or influences the actions of the Board of Directors, Board of Commissioners, or equivalents thereof in legal entities in the form of cooperatives or joint ventures, as referred to in Law Number 40 of 2014 concerning Insurance.
General Meeting of Shareholders, hereinafter abbreviated as GMS, is the general meeting of shareholders as referred to in Law Number 40 of 2007 concerning Limited Liability Companies for companies in the form of limited liability companies or equivalents to GMS for companies in the form of legal entity cooperatives or joint ventures.
Board of Directors means the Board of Directors as referred to in Law Number 40 of 2007 concerning Limited Liability Companies for companies in the form of limited liability companies or equivalents to the Board of Directors for companies in the form of legal entity cooperatives or joint ventures.
Board of Commissioners means the Board of Commissioners as referred to in Law Number 40 of 2007 concerning Limited Liability Companies for companies in the form of limited liability companies or equivalents to the Board of Commissioners for companies in the form of legal entity cooperatives or joint ventures.
Sharia Supervisory Board, hereinafter abbreviated as SSb, is a part of the Company's organ that has the task and function of supervising the implementation of the Company's business activities to ensure compliance with Sharia Principles.
Professional Certification Institution is an institution implementing professional certification activities that obtains a license from a state institution authorized to grant licenses to professional certification institutions in Indonesia.
Expert Personnel means an individual who has specific qualifications and/or expertise and is appointed as Expert Personnel at the Company where they work.
Insurance Agent means an individual who works alone or works for a business entity, acting on behalf of and in the name of an Insurance Company or Sharia Insurance Company and meeting the requirements to represent an Insurance Company or Sharia Insurance Company in marketing insurance products or Sharia insurance products, as referred to in Law Number 40 of 2014 concerning Insurance.
Merger is a legal act performed by 2 (two) or more Companies to merge by establishing 1 (one) new Company which legally acquires the assets, liabilities, and Equity of the merging Companies, and the legal entity status of the merging Companies ends by law.
Consolidation is a legal act performed by 1 (one) or more Companies to consolidate with an existing Company, resulting in the assets, liabilities, and Equity of the consolidating Companies legally transferring to the receiving Company, and subsequently, the legal entity status of the consolidating Companies ends by law.
Separation is a legal act performed by an Insurance Company or Reinsurance Company to separate a Sharia Unit, resulting in some of the assets, liabilities, and Equity of the Insurance Company or Reinsurance Company legally transferring to a Sharia Insurance Company or Sharia Reinsurance Company.
Association means an association of General Insurance Companies, Life Insurance Companies, Reinsurance Companies, Sharia General Insurance Companies, Sharia Life Insurance Companies, or Sharia Reinsurance Companies.
Financial Services Authority, hereinafter abbreviated as OJK, is an independent institution having the functions, tasks, and authorities for regulation, supervision, examination, and investigation, as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.

CHAPTER II
LEGAL ENTITY FORM, OWNERSHIP,
COMPANY NAME, AND CAPITALIZATION
Section One
Legal Entity Form
Article 2
The legal entity form of the Company is:
a. limited liability company; b. cooperative; or
c. joint venture that existed at the time Law Number 40 of 2014 concerning Insurance was enacted.

Section Two
Ownership
Article 3
(1) Companies may only be owned by:
a. Indonesian citizens and/or Indonesian legal entities that are directly or indirectly wholly owned by Indonesian citizens; or b. Indonesian citizens and/or Indonesian legal entities as referred to in letter a, together with foreign citizens or foreign legal entities that must be Companies having similar business or parent companies that have one subsidiary engaged in similar Insurance Business. (2) Foreign citizens as referred to in paragraph (1) letter b may become Company owners only through transactions on the stock exchange. (3) Criteria for foreign legal entities and foreign ownership as referred to in paragraph (1) letter b, as well as foreign citizen ownership as referred to in paragraph (2) in Companies, shall refer to government regulations regarding foreign ownership in insurance companies.

Article 4
(1) Companies that have obtained business licenses at the time Law Number 40 of 2014 concerning Insurance was enacted and have not met the provisions as referred to in Article 3 paragraph (1) letter a are required to adjust to these provisions by:
a. transferring their share ownership to Indonesian citizens; or b. changing ownership through a public offering mechanism (initial public offering), no later than 5 (five) years since the enactment of Law Number 40 of 2014 concerning Insurance. (2) Ownership changes through a public offering mechanism (initial public offering) as referred to in paragraph (1) letter b may be conducted if the Company has made efforts to transfer share ownership to Indonesian citizens as referred to in paragraph (1) letter a. (3) In order to fulfill the provisions as referred to in paragraph (1), Companies are required to prepare an action plan containing at least adjustment methods, implementation stages, and timeframes. (4) The action plan as referred to in paragraph (3) must obtain GMS approval. (5) The action plan that has obtained GMS approval as referred to in paragraph (4) must be submitted by the Company's Board of Directors to the OJK no later than 6 (six) months since the enactment of this Financial Services Authority Regulation. (6) The OJK provides approval or requests corrections for the action plan as referred to in paragraph (5) no later than 20 (twenty) working days from the date of receipt of the action plan. (7) Companies may make changes to the action plan that has obtained OJK approval at most 3 (three) times. (8) Provisions regarding the action plan as referred to in paragraphs (4) through (6) apply mutatis mutandis to changes to the action plan as referred to in paragraph (7). (9) Companies are required to submit reports on the implementation of the action plan that has obtained approval as referred to in paragraph (6) to the OJK no later than 10 (ten) working days since the realization of the action plan or in accordance with the action plan stages.

Section Three
Company Name
Article 5
(1) Companies must use Company names starting with the legal entity form and containing the words:
a. insurance, insurance, or words characterizing the activities of Insurance Companies; b. reinsurance, reinsurance, or words characterizing the activities of Reinsurance Companies;
c. Sharia insurance, sharia insurance, or words characterizing the activities of Sharia Insurance Companies; or
d. Sharia reinsurance, sharia reinsurance, or words characterizing the activities of Sharia Reinsurance Companies.
(2) The use of Company names as referred to in paragraph (1) for companies in the form of limited liability companies must meet the provisions of legislation concerning limited liability companies. (3) Company names must be clearly stated on the company building, advertisements, and company letterheads. (4) The OJK has the authority to request Companies to change their names if the Company names do not comply with the provisions as referred to in paragraph (1).

Section Four
Capitalization
Article 6
(1) Insurance Companies must have Paid-up Capital at the time of establishment of at least IDR 150,000,000,000.00 (one hundred fifty billion rupiah). (2) Reinsurance Companies must have Paid-up Capital at the time of establishment of at least IDR 300,000,000,000.00 (three hundred billion rupiah). (3) Sharia Insurance Companies must have Paid-up Capital at the time of establishment of at least IDR 100,000,000,000.00 (one hundred billion rupiah). (4) Sharia Reinsurance Companies must have Paid-up Capital at the time of establishment of at least IDR 175,000,000,000.00 (one hundred seventy-five billion rupiah). (5) Paid-up Capital as referred to in paragraphs (1) and (2) must be paid in cash and in full in the form of time deposits and/or current accounts in the name of Insurance Companies or Reinsurance Companies at one of the general banks, Sharia general banks, or Sharia business units of general banks in Indonesia. (6) Paid-up Capital as referred to in paragraphs (3) and (4) must be paid in cash and in full in the form of time deposits and/or current accounts in the name of Sharia Insurance Companies or Sharia Reinsurance Companies at one of the Sharia general banks or Sharia business units of general banks in Indonesia.

Article 7
(1) At the time of applying for a business license, Companies must have a Guarantee Fund of at least 20% (twenty percent) of the minimum Paid-up Capital required as referred to in Article 6 paragraphs (1) through (4). (2) For Insurance Companies or Reinsurance Companies, the Guarantee Fund as referred to in paragraph (1) may only be placed in the form of time deposits with automatic renewal at general banks, Sharia general banks, or Sharia business units of general banks in Indonesia that are not affiliates of the respective Insurance Company or Reinsurance Company. (3) For Sharia Insurance Companies or Sharia Reinsurance Companies, the Guarantee Fund as referred to in paragraph (1) may only be placed in the form of time deposits with automatic renewal at Sharia general banks or Sharia business units of general banks in Indonesia that are not affiliates of the respective Sharia Insurance Company or Sharia Reinsurance Company.

Article 8
(1) Shareholders of Companies in the form of foreign legal entities must have a rating of at least A or equivalent from an internationally recognized rating agency. (2) For shareholders of Companies in the form of foreign legal entities who are parent companies with one subsidiary engaged in similar Insurance Business, the rating requirement as referred to in paragraph (1) may be fulfilled by the rating of one of the subsidiaries engaged in similar Insurance Business. (3) For shareholders of Companies in the form of Indonesian legal entities, the amount of direct participation in the Company is set at a maximum equal to the shareholder's Equity. (4) The direct participation amount provisions as referred to in paragraph (3) do not apply to shareholders who are financial service institutions under the supervision of the OJK. (5) For financial service institutions under the supervision of the OJK, direct participation in Companies must be conducted in accordance with legislation governing investments and/or participations. (6) The direct participation amount as referred to in paragraph (3) must be fulfilled when the respective legal entity:
a. pays capital at the time of Company establishment; b. participates directly as a new shareholder when the Company has obtained a business license; and/or
c. increases participation in the Company.

CHAPTER III
BUSINESS LICENSING
Section One
Requirements and Procedures for Obtaining Business Licenses for Insurance Companies and Reinsurance Companies
Article 9
(1) Any Party conducting General Insurance Business, Life Insurance Business, or Reinsurance Business must first obtain a business license from the OJK. (2) To obtain a business license as referred to in paragraph (1), the Board of Directors must submit a business license application to the OJK.

Article 10
(1) Business license applications as referred to in Article 9 paragraph (2) must be submitted by the Board of Directors to the

OJK using Format 1 as stated in the Appendix which is an integral part of this OJK Regulation.

(2) The submission of the business license application as referred to in paragraph (1) must be accompanied by documents:
a. a photocopy of the approved deed of establishment of the legal entity, which must at least contain:

name and domicile;
aims and objectives as well as business activities;
capital;
ownership; and
authority, responsibilities, and tenure of the Board of Directors members and Board of Commissioners members,
and a photocopy of the deed of amendment to the articles of association (if any) accompanied by a photocopy of the proof of approval and/or proof of notification receipt from the competent authority; b. organizational structure complete with descriptions of duties, authorities, responsibilities, and work procedures;
c. photocopy of proof of payment of Paid-up Capital in the form of cash deposits and photocopy of proof of placement of minimum Paid-up Capital in the form of time deposits and/or current accounts at one of the commercial banks, Sharia commercial banks, or Sharia business units of commercial banks in Indonesia and legalized by the receiving bank which remains valid during the business license application process;
d. initial report on the Guarantee Fund along with proof of placement of the Guarantee Fund; e. ownership list, consisting of:
a list of shareholders along with details of each share ownership and the entire business group structure related to the Insurance Company or Reinsurance Company and legal entity owners of the Insurance Company or Reinsurance Company up to the ultimate owner, for Insurance Companies or Reinsurance Companies in the form of limited liability companies; or
a list of members along with the amount of basic savings and mandatory savings, for Insurance Companies or Reinsurance Companies in the form of cooperative legal entities;
f. data of shareholders or members other than Principal Shareholders (PSP):
individuals, accompanied by:
a) a photocopy of identification in the form of an identity card (KTP) or a valid passport; b) a photocopy of the tax identification number (NPWP); c) a photocopy of the tax return (SPT) for the last 2 (two) years and other documents showing the financial capacity and funding sources of the prospective individual shareholder; d) a curriculum vitae complete with the latest 4 x 6 cm color photo; and e) a statement letter from the concerned party stating:

the capital deposit does not come from loans;
the capital deposit does not come from money laundering activities and financial crimes;
does not have non-performing loans and/or financing;
is not included as a Party prohibited from becoming a shareholder or a Party that manages, oversees, and/or has significant influence on financial service institutions;
has never been sentenced for committing criminal offenses in the field of financial service business and/or the economy based on court decisions that have permanent legal force within the last 5 (five) years;
has never been sentenced for committing criminal offenses based on court decisions that have permanent legal force within the last 5 (five) years;
has never been declared bankrupt or guilty causing a company to be declared bankrupt based on court decisions that have permanent legal force within the last 5 (five) years; and
has never been a Principal Shareholder (PSP), Board of Directors member, Board of Commissioners member, Controller, or Sharia Supervisory Board (DPS) member at a financial service company whose business license was revoked due to violations within the last 5 (five) years;

legal entities, accompanied by:
a) a photocopy of the deed of establishment of the legal entity including the articles of association and amendments (if any), accompanied by a photocopy of the proof of approval, proof of approval, and/or photocopy of proof of notification receipt from the competent authority; b) financial reports audited by public accountants accompanied by non-consolidated financial reports and the latest month's financial reports; c) documents as referred to in paragraph (2) letter f number 1 letter a), letter b), and letter d), for the directors or those equivalent to the directors of the respective legal entity; and d) a statement letter from the directors or those equivalent to the directors of the respective legal entity stating that:

the capital deposit does not come from loans;
the capital deposit does not come from money laundering activities and financial crimes;
does not have non-performing loans and/or financing;
is not included as a Party prohibited from becoming a shareholder or a Party that manages, oversees, and/or has significant influence on financial service institutions;
has never been sentenced for committing criminal offenses in the field of financial service business and/or the economy based on court decisions that have permanent legal force within the last 5 (five) years;
has never been declared bankrupt or declared guilty causing a company to be declared bankrupt based on court decisions that have permanent legal force within the last 5 (five) years; and
has never been a Principal Shareholder (PSP) at a financial service company whose business license was revoked due to violations within the last 5 (five) years;
e) rating results from internationally recognized rating agencies, for shareholders in the form of foreign legal entities;

the Republic of Indonesia, accompanied by a photocopy of government regulations regarding state capital participation for the establishment of Insurance Companies or Reinsurance Companies;
local governments, accompanied by a photocopy of regional regulations regarding regional capital participation for the establishment of Insurance Companies or Reinsurance Companies;
g. list of Controllers along with information regarding the form of their control; h. proof of employing Experts;
i. work plan for the first 3 (three) years which must at least contain:
feasibility study regarding market opportunities and economic potential as well as business lines to be entered and target markets;
steps taken to realize the aforementioned plan; and
cash flow projections, balance sheets, semi-annual profit/loss calculations, and company health levels and underlying assumptions, starting from when the Insurance Company or Reinsurance Company conducts operational activities;
j. photocopy of the Insurance Company or Reinsurance Company's risk management guidelines; k. specifications of insurance products to be marketed, complete with premium revenue projections and expenses related to marketing new insurance products for a period of 3 (three) years and sample policies to be used for Insurance Companies;
l. photocopy of agreements with other parties (if any) and policies for outsourcing part of the business functions;
m. administration system and data management infrastructure supporting the preparation and submission of reports to OJK; n. confirmation from the supervisory authority in the home country of Foreign Parties, in case of direct participation by Foreign Parties; o. proof of payment of licensing fees; and p. other documents in support of healthy business growth, including:
photocopy of the initial/closing financial position report of the Insurance Company or Reinsurance Company;
proof of operational readiness;
proof of employing actuaries and internal auditors;
human resources field plan including human resource development plans for at least the first 3 (three) years;
photocopy of guidelines for implementing anti-money laundering and counter-terrorism financing programs;
photocopy of guidelines for good corporate governance of Insurance Companies and Reinsurance Companies;
investment governance guidelines;
photocopy of cooperation agreements between shareholders in the form of foreign legal entities and Indonesian shareholders, for Insurance Companies or Reinsurance Companies that include participation from foreign legal entities, made in Indonesian language and at least containing:
a) capital composition and details of authorities, at least containing provisions regarding voting rights, profit and loss distribution, and appointment of Board of Directors and Board of Commissioners members of the Insurance Company or Reinsurance Company; and b) obligations of shareholders in the form of foreign legal entities to formulate and implement education and training programs according to their fields of expertise;
automatic reinsurance support plan, for Insurance Companies; and
retrocession support plan, for Reinsurance Companies.

(3) The business license application as referred to in paragraph (1) must be submitted simultaneously with the application for the assessment of capacity and propriety for prospective principal parties of Insurance Companies or Reinsurance Companies.

(4) Regulations regarding the assessment of capacity and propriety for principal parties of Insurance Companies or Reinsurance Companies and the format for the application for the assessment of capacity and propriety as referred to in paragraph (3) are regulated in OJK regulations regarding the assessment of capacity and propriety for principal parties of financial service institutions.

Part Two
Requirements and Procedures for Obtaining Business Licenses for Sharia Insurance Companies and Sharia Reinsurance Companies

Paragraph 1
General

Article 11
(1) Any Party conducting General Sharia Insurance Business, Sharia Life Insurance Business, or Sharia Reinsurance Business must first obtain a business license from OJK.

(2) To obtain the business license as referred to in paragraph (1), the Board of Directors must submit a business license application to OJK.

Article 12
Business licenses as Sharia Insurance Companies and Sharia Reinsurance Companies can be obtained by submitting applications for:
a. new establishment of Sharia Insurance Companies or Sharia Reinsurance Companies; b. conversion from Insurance Companies to Sharia Insurance Companies or conversion from Reinsurance Companies to Sharia Reinsurance Companies; or
c. Separation of Sharia Units from Insurance Companies or Reinsurance Companies.

Paragraph 2
New Establishment of Sharia Insurance Companies or Sharia Reinsurance Companies

Article 13
(1) Applications for business licenses for new establishment of Sharia Insurance Companies or Sharia Reinsurance Companies as referred to in Article 12 letter a, must be submitted by the Board of Directors to OJK using Format 2 as stated in the Appendix which is an integral part of this OJK Regulation.

(2) The submission of applications for business licenses for new establishment of Sharia Insurance Companies or Sharia Reinsurance Companies as referred to in paragraph (1) must be accompanied by documents as referred to in Article 10 paragraph (2) accompanied by additional documents as follows:
a. photocopy of the minutes of the Extraordinary General Meeting of Shareholders (EGMS) regarding the appointment of DPS members; b. proof of approval from the National Sharia Board (Dewan Syariah Nasional) regarding the appointment of DPS members;
c. photocopy of guidelines for implementing financial management according to Sharia Principles, at least regulating regarding investment placement including limits, types, and amounts;
d. photocopy of guidelines for conducting Insurance Business according to Sharia Principles, at least regulating regarding risk spreading; e. supporting proof that employed Experts have expertise in the field of Sharia Insurance and/or Sharia economics; and f. proof of DPS approval for Sharia Insurance products to be marketed at least including:

basis for calculating contribution tariffs, contribution reserves, and asset share or profit testing, for Sharia Life Insurance Companies;
basis for calculating contribution tariffs, contribution reserves, and underwriting projections, for Sharia General Insurance Companies;
marketing methods;
automatic reinsurance support plans for Sharia Insurance Companies and retrocession support plans for Sharia Reinsurance Companies; and
sample policies, insurance closure request letters (SPPA), and brochures.

Paragraph 3
Conversion from Insurance Companies to Sharia Insurance Companies or Conversion from Reinsurance Companies to Sharia Reinsurance Companies

Article 14
(1) Converted Sharia Insurance Companies must have Equity at the time of conversion of at least IDR 100,000,000,000.00 (one hundred billion rupiah).

(2) Converted Sharia Reinsurance Companies must have Equity at the time of conversion of at least IDR 175,000,000,000.00 (one hundred seventy-five billion rupiah).

Article 15
Conversion from Insurance Companies to Sharia Insurance Companies or conversion from Reinsurance Companies to Sharia Reinsurance Companies as referred to in Article 12 letter b must meet the following provisions:
a. does not harm policyholders or insured parties; b. with notification to policyholders regarding the conversion plan and procedures for settling the rights of policyholders or insured parties; and
c. transferring insurance portfolios to other Insurance Companies, paying premium shares, and/or paying insurance values, for insured parties or policyholders who are unwilling to become policyholders or participants of Sharia Insurance Companies.

Article 16
(1) Applications for business licenses for conversion from Insurance Companies to Sharia Insurance Companies or conversion from Reinsurance Companies to Sharia Reinsurance Companies as referred to in Article 12 letter b, must be submitted by the Board of Directors of Insurance Companies or Reinsurance Companies to OJK using Format 3 as stated in the Appendix which is an integral part of this OJK Regulation.

(2) The submission of business license applications as referred to in paragraph (1) must be accompanied by documents as referred to in Article 10 paragraph (2) letter b, letter d, letter e, letter f, letter g, letter h, letter i, letter j, letter l, letter m, letter n, letter o, and letter p accompanied by additional documents consisting of:
a. business licenses as Insurance Companies or Reinsurance Companies; b. photocopy of the deed of amendment to the articles of association stating:

one of the aims and objectives of the Company is to conduct business activities based on Sharia Principles; and
the authority and responsibilities of the DPS, accompanied by proof of approval, proof of approval, and/or proof of notification receipt from the competent authority;
c. photocopy of the minutes of the EGMS approving the conversion;
d. photocopy of the minutes of the EGMS regarding the appointment of DPS members; e. proof of approval from the National Sharia Board (Dewan Syariah Nasional) regarding the appointment of DPS members; f. photocopy of guidelines for implementing financial management according to Sharia Principles at least regulating regarding investment placement including limits, types, and amounts; g. photocopy of guidelines for conducting Insurance Business according to Sharia Principles at least regulating regarding risk spreading; h. supporting proof that employed Experts have expertise in the field of Sharia Insurance and/or Sharia economics;
i. proof of DPS approval for insurance products to be marketed at least including:
basis for calculating contribution tariffs, contribution reserves, and asset share or profit testing for Sharia Life Insurance Companies;
basis for calculating contribution tariffs, contribution reserves, and underwriting projections for Sharia General Insurance Companies;
marketing methods;
automatic reinsurance support plans for Sharia Insurance Companies and retrocession support plans for Sharia Reinsurance Companies; and
sample policies, insurance closure request letters (SPPA), and brochures; and
j. plans for settling the rights of policyholders or insured parties who are unwilling to become policyholders or participants of converted Sharia Insurance Companies or Sharia Reinsurance Companies.

Paragraph 4
Separation of Sharia Units

Article 17
(1) Insurance Companies and Reinsurance Companies must conduct Separation of Sharia Units into Sharia Insurance Companies or Sharia Reinsurance Companies when Tabarru’ Funds and participant investment funds have reached at least 50% (fifty percent) of the total value of Insurance Funds, Tabarru’ Funds, and participant investment funds in the parent company or 10 (ten) years since the enactment of Law Number 40 of 2014 concerning Insurance.

(2) Tabarru’ Funds and participant investment funds have reached at least 50% (fifty percent) of the total value of Insurance Funds, Tabarru’ Funds, and participant investment funds in the parent company as referred to in paragraph (1) calculated based on monthly reports submitted by Insurance Companies and Reinsurance Companies to OJK.

(3) Insurance Companies and Reinsurance Companies that have obtained business licenses at the time this OJK Regulation was enacted and/or have met the requirements as referred to in paragraph (1) must formulate work plans for the Separation of Sharia Units.

(4) Work plans for the Separation of Sharia Units as referred to in paragraph (3) must at least contain methods for the Separation of Sharia Units, implementation stages, and timeframes.

(5) Work plans for the Separation of Sharia Units as referred to in paragraph (3) must obtain EGMS approval.

(6) Work plans for the Separation of Sharia Units as referred to in paragraph (3) due to Tabarru’ Funds and investment funds reaching at least 50% (fifty percent) of the total value of Insurance Funds, Tabarru’ Funds, and participant investment funds in the parent company as referred to in paragraph (1), must be submitted by the Board of Directors to OJK at the latest 3 (three) months after the deadline for submitting monthly reports by the Company to OJK.

(7) Work plans for the Separation of Sharia Units as referred to in paragraph (3) in case Tabarru’ Funds and investment funds have not reached 50% (fifty percent) of the total value of Insurance Funds, Tabarru’ Funds, and participant investment funds in the parent company, must be submitted by the Board of Directors to OJK at the latest on October 17, 2020.

(8) OJK provides approval or requests corrections for work plans as referred to in paragraph (3) at the latest 20 (twenty) working days from the date of receipt of the work plan.

(9) Insurance Companies and Reinsurance Companies may make changes to work plans that have received OJK approval at most 2 (two) times which are submitted to OJK at the latest 1 (one) year from the date of OJK's letter of approval for the work plan.

(10) In case Insurance Companies and Reinsurance Companies submit applications for Separation of Sharia Units into Sharia Insurance Companies or Sharia Reinsurance Companies faster than the work plan that has been submitted, then the work plan is considered invalid.

(11) Regulations regarding work plans as referred to in paragraph (4), paragraph (5), and paragraph (8) apply mutatis mutandis to changes to work plans as referred to in paragraph (9).

Article 18
(1) Separation of Sharia Units from Insurance Companies or Reinsurance Companies as referred to in Article 17 can be done by:
a. establishing new Sharia Insurance Companies or Sharia Reinsurance Companies followed by the transfer of all membership portfolios to the new Sharia Insurance Companies or Sharia Reinsurance Companies; or b. transferring all membership portfolios in Sharia Units to other Sharia Insurance Companies or Sharia Reinsurance Companies that have obtained business licenses.

(2) Separation of Sharia Units from Insurance Companies or Reinsurance Companies as referred to in paragraph (1) must meet applicable legal provisions.

(3) Insurance Companies and Reinsurance Companies must notify policyholders of the Separation of Sharia Units plans through:
a. announcements of the Separation of Sharia Units plans in newspapers; and b. letters to each policyholder.

(4) Separation of Sharia Units as referred to in paragraph (1) must meet the following requirements:
a. does not reduce the rights of policyholders or participants; b. is conducted at Insurance Companies or Reinsurance Companies that have the same business fields; and
c. does not cause Sharia Insurance Companies or Sharia Reinsurance Companies receiving the transfer of Sharia Units to violate applicable regulations in the field of insurance.

Article 19
(1) Equity at the time of establishment of Sharia Insurance Companies resulting from Separation as referred to in Article 18 paragraph (1) letter a must be at least IDR 50,000,000,000.00 (fifty billion rupiah).

(2) Equity at the time of establishment of Sharia Reinsurance Companies resulting from Separation as referred to in Article 18 paragraph (1) letter a must be at least IDR 100,000,000,000.00 (one hundred billion rupiah).

Article 20
(1) Establishment of new Sharia Insurance Companies or Sharia Reinsurance Companies resulting from Separation as referred to in Article 18 paragraph (1) letter a can be conducted by 1 (one) or more Insurance Companies or Reinsurance Companies that have Sharia Units.

(2) New Sharia Insurance Companies or Sharia Reinsurance Companies as referred to in Article 18 paragraph (1) letter a are prohibited from conducting business activities before obtaining business licenses from OJK.

(3) To obtain business licenses as referred to in paragraph (2), the Board of Directors of Insurance Companies or Reinsurance Companies must submit business license applications to OJK.

(4) Applications for business licenses as referred to in paragraph (3), must be submitted by the Board of Directors of Insurance Companies or Reinsurance Companies to OJK using Format 4 as stated in the Appendix which is an integral part of this OJK Regulation.

(5) The submission of business license applications for Separation of Sharia Units from Insurance Companies or Reinsurance Companies as referred to in paragraph (1) must be accompanied by documents:
a. photocopy of the EGMS minutes approving the Separation; b. photocopy of the Separation deed;
c. documents as referred to in Article 10 paragraph (2), except for document letter c, accompanied by additional documents consisting of:

documents fulfilling the Equity requirements of Companies as referred to in Article 19 paragraph (1) or paragraph (2); and
supporting proof that employed Experts have expertise in the field of Sharia Insurance and/or Sharia economics.

(6) Applications for business licenses as referred to in paragraph (3) must be submitted simultaneously with applications for the assessment of capacity and propriety for prospective principal parties of Sharia Insurance Companies and Sharia Reinsurance Companies.

(7) OJK provides approval or rejection of business license applications as referred to in paragraph (3).

Article 21
(1) Insurance Companies and Reinsurance Companies must notify policyholders of the Separation of Sharia Units after the business license application as referred to in Article 20 paragraph (3) is approved by OJK, namely through:
a. announcements of the Separation of Sharia Units in newspapers at the latest 20 (twenty) days

work after obtaining a business license from OJK; and b. letters to each policyholder.
(2) Insurance Companies or Reinsurance Companies must transfer the entire portfolio of participants in the Sharia Unit to Sharia Insurance Companies or Sharia Reinsurance Companies as referred to in Article 18 paragraph (1) letter a after the Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation obtains a business license from OJK, at the latest 12 (twelve) months from the date of the decision on the granting of the business license by OJK. (3) Sharia Insurance Companies or Sharia Reinsurance Companies receiving the transfer of the portfolio of participants in the Sharia Unit must submit a report on the receipt of the transfer of the portfolio of participants to OJK at the latest 10 (ten) working days after the entire portfolio of participants is received. (4) The report on the receipt of the transfer of the portfolio of participants in the Sharia Unit as referred to in paragraph (3) contains details of the participants of Sharia Insurance or Sharia Reinsurance received from the Sharia Unit of the Insurance Company or Reinsurance Company and is accompanied by the financial statements of the Sharia Insurance Company and the Sharia Reinsurance Company after the receipt of the portfolio of participants.
Article 22
(1) Insurance Companies or Reinsurance Companies that have a Sharia Unit must submit an application for revocation of the license to establish the Sharia Unit to OJK at the latest 10 (ten) working days after the portfolio of participants in the Sharia Unit

is transferred to the Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation.
(2) The application for revocation of the license to establish the Sharia Unit as referred to in paragraph (1) must be submitted by the Board of Directors of the Insurance Company or Reinsurance Company to OJK accompanied by:
a. proof of settlement of rights and obligations of the Sharia Unit; and b. a statement letter from the Board of Directors of the Insurance Company or Reinsurance Company that the steps to settle all obligations of the Sharia Unit have been carried out in accordance with the regulations and if there are claims in the future, they become the responsibility of the Insurance Company or Reinsurance Company. (3) In the event that OJK grants approval for the application for revocation of the license to establish the Sharia Unit as referred to in paragraph (1), OJK revokes the license to establish the Sharia Unit.
Article 23
(1) The transfer of the portfolio of participants in the Sharia Unit to the Sharia Insurance Company or Sharia Reinsurance Company receiving the Separation as referred to in Article 18 paragraph (1) letter b can only be done with OJK approval. (2) To obtain OJK approval as referred to in paragraph (1), the Board of Directors of the Insurance Company or Reinsurance Company must submit an application to OJK using Format 5 as contained in the Appendix which is an inseparable part of this OJK Regulation.

(3) The submission of the application for approval of the transfer of the portfolio of participants in the Sharia Unit from the Insurance Company or Reinsurance Company as referred to in paragraph (1) must be accompanied by documents:
a. the financial position report of the Sharia Unit that has been audited by a public accountant; b. a letter of approval for the transfer of rights and obligations from the Sharia Insurance Company or Sharia Reinsurance Company receiving the transfer;
c. the portfolio of participants in the Sharia Unit;
d. a photocopy of the Separation deed; and e. a photocopy of the minutes of the General Meeting of Shareholders approving the Separation. (4) OJK grants approval, requests document completeness, or rejects the application for transfer of the portfolio of participants in the Sharia Unit as referred to in paragraph (1) within a period of at most 20 (twenty) working days from the date the application is received. (5) Insurance Companies or Reinsurance Companies must submit document completeness as referred to in paragraph (4) at the latest 20 (twenty) working days from the date of the letter requesting document completeness from OJK. (6) In the event that the Insurance Company or Reinsurance Company has submitted document completeness as referred to in paragraph (5), OJK grants approval or rejection in accordance with the provisions as referred to in paragraph (4). (7) If within 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (4), OJK has not received a response to the request for document completeness mentioned, the Insurance Company or

Reinsurance Company is deemed to have cancelled the application for transfer of the portfolio of participants in the Sharia Unit.
(8) In the event that the application for transfer of the portfolio of participants in the Sharia Unit as referred to in paragraph (4) is approved, OJK establishes a decision on the transfer of rights and obligations of the Sharia Unit to the Insurance Company or Reinsurance Company. (9) In the event that OJK rejects the application for transfer of the portfolio of participants in the Sharia Unit as referred to in paragraph (4), the rejection must be done in writing accompanied by the reasons.
Article 24
(1) Insurance Companies or Reinsurance Companies that have a Sharia Unit and have obtained OJK approval as referred to in Article 23 paragraph (1) must transfer the portfolio of participants in the Sharia Unit to the Sharia Insurance Company or Sharia Reinsurance Company at the latest 1 (one) year after the Separation approval is given by OJK. (2) Insurance Companies or Reinsurance Companies that have a Sharia Unit must announce the plan to transfer the portfolio of participants in the Sharia Unit in a newspaper with national circulation at the latest 10 (ten) working days from the date of the Separation approval of the Sharia Unit is given. (3) In the event that the transfer of the portfolio of participants in the Sharia Unit to the Sharia Insurance Company or Sharia Reinsurance Company receiving the Separation as referred to in paragraph (1) has been completed, the Insurance Company or Reinsurance Company carrying out the transfer of the portfolio of participants in the Sharia Unit must:
a. report the implementation of the transfer of the portfolio of participants in the Sharia Unit; and b. submit an application for revocation of the license to establish the Sharia Unit, at the latest 10 (ten) working days after the date of the implementation of the transfer of the portfolio of participants in the Sharia Unit. (4) The reporting of the implementation of the transfer of the portfolio of participants in the Sharia Unit and the application for revocation of the license to establish the Sharia Unit as referred to in paragraph (3) must be submitted by the Board of Directors of the Insurance Company or Reinsurance Company to OJK using Format 6 as contained in the
Appendix which is an inseparable part of
this OJK Regulation, accompanied by:
a. proof of settlement of the portfolio of participants in the Sharia Unit; and b. a statement letter from the Board of Directors of the Insurance Company or Reinsurance Company that the steps to settle the entire portfolio of participants in the Sharia Unit have been carried out and if there are claims in the future they become the responsibility of the Insurance Company or Reinsurance Company. (5) Based on the report on the implementation of the Separation as referred to in paragraph (4), OJK revokes the license of the Sharia Unit. Third Section Approval or Rejection of Business License Applications
Article 25
(1) OJK grants approval, requests document completeness, or rejects the application for a business license as referred to in
Article 10 paragraph (1), Article 13 paragraph (1), Article 16 paragraph (1),
and Article 20 paragraph (4) within a period of at most 20 (twenty) working days from the date the business license application is received. (2) In order to grant approval or rejection as referred to in paragraph (1), OJK conducts:
a. examination of document completeness as referred to in Article 10 paragraph (2); b. verification of capital deposits;
c. feasibility analysis of the work plan
as referred to in Article 9 paragraph (2) letter i; d. assessment of competence and propriety of candidate key parties; and e. analysis of compliance with regulations in the field of insurance. (3) OJK may conduct an inspection at the Company's office to ensure the operational readiness of the Company. (4) The Company's Board of Directors must submit document completeness as referred to in paragraph (1) at the latest 20 (twenty) working days from the date of the letter requesting document completeness from OJK. (5) In the event that the Company's Board of Directors has submitted document completeness as referred to in paragraph (4), OJK grants approval or rejection in accordance with the provisions as referred to in paragraph (1). (6) If within 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (1), OJK has not received a response to the request for document completeness mentioned, the Company is deemed to cancel the business license application.

(7) In the event that the business license application as referred to in paragraph (1) is approved, OJK establishes a decision granting the business license to the Company. (8) In the event that OJK rejects the business license application as referred to in paragraph (1), the rejection must be done in writing accompanied by the reasons.
Article 26
(1) A Company that cancels its business license application as referred to in Article 25 paragraph (6) may submit an application for the disbursement of the Guarantee Fund. (2) The application for the disbursement of the Guarantee Fund as referred to in paragraph (1) must be submitted by the Company's Board of Directors to OJK according to Format 7 contained in the appendix which is an inseparable part of this OJK Regulation. (3) For Companies whose business license application is rejected as referred to in Article 25 paragraph (8), OJK will issue a letter approving the disbursement of the Guarantee Fund.
Article 27
(1) A Company that has obtained a business license from OJK must carry out business activities at the latest 3 (three) months from the date the business license is established by OJK. (2) The Company must submit a report on the implementation of business activities as referred to in paragraph (1) to OJK at the latest 10 (ten) working days from the date the business activities begin. (3) The reporting of the implementation of business activities as referred to in paragraph (2) must be submitted by the Company's Board of Directors to OJK using Format 8 as contained in the

Appendix which is an inseparable part of
this OJK Regulation.
(4) The reporting of the implementation of business activities as referred to in paragraph (2) is accompanied by:
a. proof of insurance coverage activities that have been carried out by the Insurance Company or Sharia Insurance Company or proof of reinsurance activities that have been carried out by the Reinsurance Company or Sharia Reinsurance Company; and b. a photocopy of the residence permit and/or work permit for foreign labor issued by the competent authority, for members of the Board of Directors and/or members of the Board of Commissioners who are foreign nationals.
CHAPTER IV
CONTROLLING SHAREHOLDERS AND CONTROLLERS
First Section
Controlling Shareholders
Article 28
(1) Each Party may only become a CSP in 1 (one) Life Insurance Company, 1 (one) General Insurance Company, 1 (one) Reinsurance Company, 1 (one) Sharia Life Insurance Company, 1 (one) Sharia General Insurance Company, and 1 (one) Sharia Reinsurance Company. (2) The provisions as referred to in paragraph (1) do not apply if the CSP is the Republic of Indonesia.
Article 29
(1) At the time of the enactment of Law Number 40 of 2014 concerning Insurance, each Party that is a CSP in more than 1 (one) Life Insurance Company, 1 (one) General Insurance Company, 1 (one) Reinsurance Company, 1 (one) Sharia Life Insurance Company, 1 (one) Sharia General Insurance Company, and 1 (one) Sharia Reinsurance Company must adjust to the provisions in
Article 28 paragraph (1) at the latest by October 17
2017.
(2) In order to comply with the provisions as referred to in Article 28 paragraph (1), the CSP may carry out:
a. Merger of Companies under its control; b. Consolidation of Companies under its control;
c. sale of part or all of the share ownership of the Company under its
control, so that it no longer becomes a CSP; or d. other corporate actions based on OJK approval.
(3) Companies owned by the CSP that have not met the provisions as referred to in
Article 28 paragraph (1) must prepare an action plan
in order to adjust to the provisions thereof.
(4) The adjustment action plan with the provisions as referred to in Article 28 paragraph (1) must at least contain the method of adjustment, stages of implementation, and duration. (5) The action plan for adjustment as referred to in paragraph (3) must obtain approval from the General Meeting of Shareholders. (6) The adjustment action plan with the provisions regarding the CSP as referred to in paragraph (3) must be submitted by the Board of Directors to OJK, at the latest 6 (six) months from the enactment of this OJK Regulation.

(7) OJK grants approval or requests improvement of the action plan as referred to in paragraph (3) at the latest 20 (twenty) working days from the date the action plan is received. (8) The Company may make changes to the action plan that has obtained approval from OJK at most 1 (one) time. (9) The provisions regarding the action plan as referred to in paragraph (5) to paragraph (7) apply mutatis mutandis to changes in the action plan as referred to in paragraph (8). Second Section Controllers
Article 30
(1) The Company must appoint at least 1 (one)
Controller.
(2) Parties categorized as Controllers as referred to in paragraph (1) are:
a. shareholders; or b. non-shareholders.
(3) Parties categorized as Controllers who are shareholders as referred to in paragraph (2) letter a are CSPs.
(4) Controllers who are shareholders as referred to in paragraph (2) letter a must meet the integrity and financial feasibility criteria as regulated in OJK regulations regarding the assessment of competence and propriety for key parties of financial service institutions. (5) Controllers who are not shareholders as referred to in paragraph (2) letter b must meet the integrity and financial reputation criteria as regulated in OJK regulations regarding the assessment of competence and propriety for key parties of financial service institutions. (6) Controllers must share responsibility for the sustainability of the Company's business in their control. (7) In the event that there are other Controllers not yet appointed by the Company, OJK has the authority to appoint Controllers outside the Controllers as referred to in paragraph (1).
Article 31
(1) Companies that have obtained a business license at the time this OJK Regulation is enacted must report the appointment of Controllers to OJK at the latest 6 (six) months after this OJK Regulation is enacted. (2) The reporting as referred to in paragraph (1) must be submitted by the Company's Board of Directors to OJK according to Format 9 as contained in the
Appendix which is an inseparable part of
this OJK Regulation and accompanied by a list of Controllers along with information regarding the form of their control.
(3) In the event that the Controllers as referred to in paragraph (1) do not yet meet the assessment and propriety provisions as regulated in OJK regulations regarding the assessment of competence and propriety for key parties of financial service institutions, then the reporting as referred to in paragraph (2) must be submitted together with the submission of the application for assessment of competence and propriety.
Article 32
(1) Parties who have been appointed as Controllers cannot cease to be Controllers without approval from OJK.

(2) To obtain approval as referred to in paragraph (1), the Company must submit a written application to OJK accompanied by the reasons for ceasing to be Controllers. (3) In the event that the Company only has 1 (one) Controller, then to obtain approval as referred to in paragraph (1), the Company must first appoint a new Controller. (4) In granting approval or rejection of the application submitted, OJK considers the fulfillment of the provisions of Article 30 paragraph (6) and has the authority to conduct inspections. (5) OJK's approval or rejection of the application as referred to in paragraph (4) is established at the latest 20 (twenty) working days from the date the application is received or the establishment of the inspection result report. (6) For Parties who have been approved by OJK to cease being Controllers in the Company, the relevant party is prohibited from exercising control over the Company.
Article 33
(1) Changes in Controllers must be reported to OJK accompanied by a list of shareholders along with details of the size of each share ownership and the entire group structure related to the Company and the legal entity owner of the Company up to the ultimate owner accompanied by supporting documents. (2) Changes in Controllers as referred to in paragraph (1) must be reported by the Company's Board of Directors to OJK at the latest 10 (ten) working days after being established by the Company.

CHAPTER V
SHARIA UNITS
First Section
Establishment of Sharia Units
Article 34
(1) Insurance Companies and Reinsurance Companies that will carry out part of their business activities based on Sharia Principles must establish a Sharia Unit. (2) The plan to establish the Sharia Unit must be included in the business plan of the Insurance Company and Reinsurance Company for the current period. Second Section Sharia Unit Working Capital
Article 35
(1) The Sharia Unit of an Insurance Company must have working capital at the time of establishment of at least IDR 50,000,000,000.00 (fifty billion rupiah). (2) The Sharia Unit of a Reinsurance Company must have working capital at the time of establishment of at least IDR 75,000,000,000.00 (seventy-five billion rupiah). (3) The working capital of the Sharia Unit as referred to in paragraph (1) and paragraph (2) must be set aside in the form of term deposits or current accounts in the name of the Insurance Company or Reinsurance Company and placed in one of the Sharia commercial banks or Sharia business units of commercial banks in Indonesia. Third Section License to Establish Sharia Units
Article 36
(1) The Sharia Unit as referred to in Article 34 paragraph (1) must first obtain a license to establish the Sharia Unit from OJK.
(2) At the time of submitting the application for the license to establish the Sharia Unit, the Sharia Unit must have a Guarantee Fund of at least 20% (twenty percent) of the working capital as referred to in Article 35. (3) The Guarantee Fund as referred to in paragraph (2) may only be placed in the form of term deposits with automatic renewal at a Sharia commercial bank or Sharia business unit of a commercial bank in Indonesia that is not an affiliate of the Insurance Company or Reinsurance Company in question. (4) To obtain the license to establish the Sharia Unit as referred to in paragraph (1), the Board of Directors of the Insurance Company or Reinsurance Company must submit an application to establish the Sharia Unit to OJK according to Format 10 as contained in the Appendix which is an inseparable part of this OJK Regulation. (5) The submission of the application for the license to establish the Sharia Unit as referred to in paragraph (4) must be accompanied by:
a. a photocopy of the deed of amendment to the articles of association of the Insurance Company or Reinsurance Company which at least contains:

aims and objectives including carrying out
business activities with Sharia Principles;
name, authority and responsibility
of DPS members; and
the amount of working capital of the Sharia Unit accompanied
by proof of approval and/or proof of receipt of notification from the competent authority; b. a photocopy of the Board of Directors' decision of the Insurance Company or Reinsurance Company that approves the placement of working capital in the Sharia Unit accompanied by the amount of the placement of working capital;
c. a photocopy of proof of working capital deposit in the form of
term deposits in the name of the Insurance Company or Reinsurance Company at one of the Sharia commercial banks or Sharia business units of commercial banks in Indonesia legalized by the receiving bank of the deposit that is still valid during the process of licensing the establishment of the Sharia Unit; d. data of the Sharia Unit leadership, including:
photocopy of identification cards in the form of identity cards
(KTP) or passports that are still valid;
curriculum vitae list accompanied by the latest colored
photos sized 4 x 6 cm;
proof of appointment as the leader of the Sharia
Unit; and
a statement letter stating:
a) does not have non-performing loans and/or financing; b) does not hold dual positions in other functions, in the same company, except if the leader of the Sharia Unit is held by the Board of Directors; and c) proof of expertise, training, and/or experience in the field of Sharia finance;

e. DPS data, including:

meeting the requirements for assessment
of competence and propriety; and
photocopy of the minutes of the General Meeting of Shareholders regarding
the appointment of DPS; f. initial financial report of the Sharia Unit that is separate from the business activities of the Insurance Company or Reinsurance Company; g. work plan for the Sharia Unit to be formed, which at least contains:
feasibility study regarding market opportunities and
economic potential as well as business lines to be entered and market targets;
steps taken to
realize the aforementioned plan; and
projection of monthly cash flow for 12 (twelve
months), financial position report, profit/loss calculation, and Company health level and assumptions underlying it, starting from the date the Sharia Unit begins operational activities; and h. Separation plan for the Sharia Unit in accordance with applicable regulations, which at least contains the method of Separation, stages of implementation, and duration.
Article 37
(1) OJK grants approval, requests document completeness, or rejects the application for the license to establish the Sharia Unit as referred to in Article 36 paragraph (4) within a period of at most 20 (twenty) working days from the date the application for the license to establish the Sharia Unit is received.

(2) In order to provide approval or rejection as referred to in paragraph (1), OJK conducts:
a. analysis and research on the completeness of documents as referred to in Article 36 paragraph (5); b. feasibility analysis of the work plan as referred to in Article 36 paragraph (5) letter g;
c. assessment of competence and propriety regarding prospective members of the Sharia Supervisory Board (DPS); and
d. analysis of compliance with regulations in the field of Sharia insurance.
(3) OJK may conduct inspections at the Sharia Unit office to ensure the operational readiness of the Sharia Unit.
(4) Insurance Companies or Reinsurance Companies must submit the completeness of documents as referred to in Article 36 paragraph (5) within a maximum of 20 (twenty) working days from the date of the letter requesting document completeness from OJK. (5) In the event that Insurance Companies or Reinsurance Companies have submitted the completeness of documents as referred to in paragraph (4), OJK provides approval or rejection in accordance with the provisions as referred to in paragraph (1). (6) If within 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (1), OJK has not received a response to the requested document completeness, the Insurance Company or Reinsurance Company is deemed to have cancelled the application for the establishment of the Sharia Unit. (7) In the event that the application for the establishment of the Sharia Unit as referred to in paragraph (1) is approved, OJK establishes a decision granting the license for the establishment of the Sharia Unit to the Insurance Company or Reinsurance Company. (8) In the event that OJK rejects the application for the establishment of the Sharia Unit as referred to in paragraph (1), the rejection must be done in writing accompanied by the reasons.

Article 38
(1) Insurance Companies and Reinsurance Companies are required to conduct business activities based on Sharia Principles within a maximum of 3 (three) months from the date the license for the establishment of the Sharia Unit is established. (2) Sharia Units are prohibited from not conducting business activities for a continuous period of 12 (twelve) months. (3) Sharia Units are required to submit reports on the implementation of business activities based on Sharia Principles to OJK within a maximum of 10 (ten) working days from the date the business activities of the Sharia Unit begin. (4) Reporting on the implementation of business activities as referred to in paragraph (3) must be submitted by the Board of Directors of Insurance Companies and Reinsurance Companies in accordance with Format 11 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by:
a. a list of issued Sharia policy documents; and b. a list of business agreements based on Sharia Principles that have been conducted.

Fourth Section
Accounting of Sharia Units

Article 39
(1) Sharia Units are required to have separate accounting from their parent company.
(2) The preparation of financial reports of Sharia Units must follow accounting treatments regulated in the applicable financial accounting standards.

Fifth Section
Leadership of Sharia Units

Article 40
(1) Sharia Units must be led by a Sharia Unit Leader.
(2) The Sharia Unit Leader as referred to in paragraph (1) is responsible for all operational activities of the Sharia Unit.
(3) The Sharia Unit Leader as referred to in paragraph (1) must at least meet the following provisions:
a. does not have non-performing loans and/or financing; b. has expertise, experience, and/or proof of training in the field of Sharia finance; and
c. does not hold concurrent positions in other functions within the same company, except if the Sharia Unit Leader is held by the Board of Directors.

Article 41
(1) Insurance Companies and Reinsurance Companies are required to report changes in the Sharia Unit Leader to OJK within a maximum of 15 (fifteen) working days from the date of the appointment of the Sharia Unit Leader. (2) The report on changes in the Sharia Unit Leader as referred to in paragraph (1) must be accompanied by documents as referred to in Article 36 paragraph (5) letter d.

Sixth Section
Offices Outside the Sharia Unit Headquarters

Article 42
(1) Insurance Companies and Reinsurance Companies that have Sharia Units may open offices outside the Sharia Unit headquarters within or outside the country. (2) Sharia Units that open offices outside the Sharia Unit headquarters that have the authority to make decisions regarding the acceptance or rejection of coverage and/or claims at any time must meet the following requirements:
a. meet the provisions regarding financial health for the last 4 (four) quarters; b. are not currently subject to administrative sanctions by OJK; and
c. have been included in the business plan of the Insurance Company or Reinsurance Company for the current period.

Article 43
(1) Insurance Companies and Reinsurance Companies are required to report the opening of offices outside the Sharia Unit headquarters to OJK. (2) The report on the opening of offices outside the Sharia Unit headquarters as referred to in paragraph (1) must be submitted by the Board of Directors of Insurance Companies and Reinsurance Companies to OJK within a maximum of 10 (ten) working days after the office outside the Sharia Unit headquarters operates, using Format 12 as contained in the Appendix which is an integral part of this OJK Regulation.

Article 44
(1) Sharia Units that will close offices outside the Sharia Unit headquarters that have the authority to make decisions regarding the acceptance or rejection of coverage and/or claims must first notify policyholders or participants regarding:
a. the plan to close offices outside the Sharia Unit headquarters; and b. the procedure for the transfer of rights and obligations of policyholders or participants. (2) Sharia Units are required to designate offices outside the Sharia Unit headquarters that have the authority to make decisions regarding the acceptance or rejection of coverage and/or claims, or the Sharia Unit headquarters, to handle the transfer of rights and obligations of policyholders or participants from the office outside the Sharia Unit headquarters that is being closed. (3) Sharia Units that will terminate or close offices outside the Sharia Unit headquarters must first report to OJK within a maximum of 15 (fifteen) working days before the date of termination or closure of the said office. (4) The report on the termination or closure of offices outside the Sharia Unit headquarters as referred to in paragraph (3) must be submitted by the Board of Directors of Insurance Companies and Reinsurance Companies using Format 13 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by proof of notification to policyholders or participants.

Seventh Section
Closure of Sharia Units

Article 45
(1) The closure of Sharia Units is conducted in the event that:
a. Insurance Companies or Reinsurance Companies that have Sharia Units submit an application for the closure of Sharia Units; or b. Sharia Units are subject to administrative sanctions in the form of revocation of the Sharia Unit license. (2) In the event that Insurance Companies or Reinsurance Companies submit an application for the closure of Sharia Units as referred to in paragraph (1) letter a, Insurance Companies and Reinsurance Companies are required to first report the plan to close Sharia Units to OJK accompanied by:
a. reasons or background for the closure of Sharia Units; b. a description of the condition of Sharia Units, including data on the number of in-force policies, number of policyholders or participants, number of Sharia Unit obligations to policyholders or participants, and other obligations; and
c. a plan to settle rights and obligations to policyholders or participants and other Parties.
(3) Based on the report as referred to in paragraph (2), OJK provides approval for the plan to close Sharia Units.

Article 46
(1) Insurance Companies or Reinsurance Companies that have obtained the establishment of approval for the plan to close Sharia Units are required to:
a. cease all business activities of Sharia Units; b. announce the plan to cease business activities of Sharia Units and the plan to settle Sharia Unit obligations in 2 (two) daily newspapers, one of which has national circulation, no later than 10 (ten) working days from the date of the letter establishing approval for the plan to close Sharia Units; and
c. settle all obligations of Sharia Units no later than 1 (one) year from the date of the letter establishing the closure of Sharia Units.
(2) The implementation of the cessation of business activities of Sharia Units must be reported by Insurance Companies or Reinsurance Companies that have Sharia Units to OJK no later than 10 (ten) working days after the date of cessation.

Article 47
(1) After all obligations as referred to in Article 46 paragraph (1) are settled, the Board of Directors of Insurance Companies or Reinsurance Companies are required to submit to OJK a report that at least contains:
a. the implementation of the cessation of Sharia Unit activities as referred to in Article 46 paragraph (1) letter a; b. the implementation of announcements as referred to in Article 46 paragraph (1) letter b;
c. the implementation of the settlement of rights and obligations of Sharia Unit policyholders or participants as referred to in Article 46 paragraph (1) letter c;
d. the final balance sheet of Sharia Units that has been audited by independent auditors; and e. a statement letter from the Board of Directors of Insurance Companies or Reinsurance Companies stating that all obligations of Sharia Units have been settled and that if claims arise in the future, they become the responsibility of Insurance Companies or Reinsurance Companies. (2) Based on the report as referred to in paragraph (1), OJK conducts:
a. research on the report on the implementation of the plan to close Sharia Units; and b. establishes a decision to revoke the license for the establishment of Sharia Units within a maximum of 30 (thirty) working days from the date the report as referred to in paragraph (1) is received in complete form.

CHAPTER VI
ORGANIZATIONAL STRUCTURE

Article 48
(1) Companies are required to have an organizational structure that clearly describes the separation of risk management functions, financial management functions, and service functions. (2) Companies are required to have work units that handle the functions:
a. underwriting; b. actuarial;
c. claim administration settlement;
d. marketing; e. finance including investment management; f. risk management; g. internal audit; h. administration and accounting;
i. compliance;
j. anti-money laundering and counter-terrorism financing; and k. service and complaint resolution.
(3) The organizational structure as referred to in paragraph (1) must be completed with written descriptions of duties, authorities, responsibilities, and work procedures, which are established by the Board of Directors. (4) The organizational structure as referred to in paragraph (1) must reflect good internal controls. (5) Companies are required to have employees responsible for each function as referred to in paragraph (1). (6) Company management must be supported at least by data processing systems that can produce accurate and accountable information in decision-making.

CHAPTER VII
HUMAN RESOURCES
First Section
Certification

Article 49
(1) Members of the Board of Directors, members of the Board of Commissioners, and officials 1 (one) level below the Board of Directors are required to have expertise certificates in the field of risk management from Professional Certification Institutions in the field of risk management. (2) Further provisions regarding certification for members of the Board of Directors, members of the Board of Commissioners, and officials 1 (one) level below the Board of Directors as referred to in paragraph (1) are regulated in OJK Circular Letters.

Second Section
Use of Foreign Labor

Article 50
(1) Companies may use foreign labor.
(2) Foreign labor as referred to in paragraph (1) is to be employed as:
a. Expert Labor with a job level one level below the Board of Directors; b. actuaries; or
c. consultants.
(3) Companies may only employ foreign labor that handles functions:
a. underwriting; b. actuarial;
c. marketing; and/or
d. information systems.
(4) Companies that employ foreign labor as Expert Labor as referred to in paragraph (2) letter a are required to meet the following provisions:
a. foreign labor is employed for a maximum period of 5 (five) years; and b. foreign labor is accompanied by Indonesian labor for the purpose of knowledge, expertise, and technology transfer. (5) Companies that employ foreign labor as consultants as referred to in paragraph (2) letter c are required to meet the following provisions:
a. foreign labor is only employed to execute specific projects or programs related to operational activities in the field of insurance; b. the time period for projects or programs as referred to in letter a is a maximum of 5 (five) years; and
c. foreign labor is accompanied by Indonesian labor for the purpose of knowledge, expertise, and technology transfer.
(6) Foreign labor as referred to in paragraph (1) must meet the following requirements:
a. have expertise in accordance with the field of responsibility; b. the foreign personnel hold positions that cannot yet be filled by Indonesian labor; and
c. meet the provisions of regulations in the field of labor.
(7) OJK has the authority to request Companies to dismiss foreign labor that does not meet the requirements as referred to in paragraph (6).

Article 51
(1) Companies that employ foreign labor as referred to in Article 50 paragraph (1) are required to first report to OJK within a maximum of 20 (twenty) working days before the said foreign labor is employed. (2) The report on the plan to employ foreign labor as referred to in paragraph (1) must be submitted by the Board of Directors of Companies to OJK in accordance with Format 14 as contained in the Appendix which is an integral part of this OJK Regulation. (3) The report on the plan to employ foreign labor as referred to in paragraph (1) must be accompanied by:
a. a list of resumes of foreign labor employed, accompanied by photocopies of documents reflecting their field of expertise; b. an annual education and training program plan during the employment of the said foreign labor; and
c. a placement plan and field of responsibility for foreign labor.

Article 52
(1) Companies are required to report the appointment or dismissal of foreign labor to OJK within a maximum of 20 (twenty) working days after being appointed or dismissed. (2) The report on the appointment of foreign labor as referred to in paragraph (1) must be submitted by the Board of Directors of Companies to OJK by attaching:
a. photocopy of proof of appointment of foreign labor; b. photocopy of residence permit;
c. photocopy of permit to use foreign labor; and
d. photocopy of tax identification number (NPWP).
(3) The report on the dismissal of foreign labor as referred to in paragraph (1) must be submitted by the Board of Directors of Companies to OJK accompanied by the reasons for dismissal.

Article 53
(1) Companies that employ foreign labor as referred to in Article 50 paragraph (1) are required to organize knowledge transfer activities from foreign labor to Company employees. (2) Knowledge transfer as referred to in paragraph (1) must be made in the form of annual education and training programs for Company employees.

Third Section
Human Resource Development

Article 54
(1) Companies are required to organize programs to develop the capabilities and knowledge of their employees.
(2) The development of capabilities and knowledge for their employees as referred to in paragraph (1) must be conducted in the form of education and training programs.

CHAPTER VIII
EXPERTS, ACTUARIES, AND INTERNAL AUDITORS
First Section
Experts for General Insurance Companies and Sharia General Insurance Companies

Article 55
(1) General Insurance Companies and Sharia General Insurance Companies are required to employ at least 1 (one) Expert.
(2) Experts as referred to in paragraph (1) must meet the following requirements:
a. have general insurance or Sharia general insurance expertise certificates with the highest level from Professional Certification Institutions in the field of insurance; b. have work experience in the field of general insurance or Sharia general insurance risk management for at least 3 (three) years; and
c. are not currently subject to sanctions from their professional association.
(3) General Insurance Companies and Sharia General Insurance Companies are required to adjust Experts in sufficient numbers according to the type and business lines they operate, and considering business complexity. (4) Experts as referred to in paragraph (3) must meet the following requirements:
a. have general insurance or Sharia general insurance expertise certificates with the lowest level one level below the highest qualification from Professional Certification Institutions in the field of insurance; b. have expertise certificates in accordance with the business lines operated from Professional Certification Institutions in the field of insurance;
c. have work experience in the field of risk management for at least 3 (three) years; and
d. are not currently subject to sanctions from their professional association.
(5) Further provisions regarding the adjustment of the number of Experts as referred to in paragraph (3) and the requirements of Experts as referred to in paragraph (4) are regulated in OJK Circular Letters.

Second Section
Experts for Life Insurance Companies and Sharia Life Insurance Companies

Article 56
(1) Life Insurance Companies and Sharia Life Insurance Companies are required to employ at least 1 (one) Expert.
(2) Life insurance experts as referred to in paragraph (1) must meet the following requirements:
a. have life insurance or Sharia life insurance expertise certificates with the highest level from Professional Certification Institutions in the field of insurance; b. have work experience in the field of life insurance or Sharia life insurance risk management for at least 3 (three) years; and
c. are not currently subject to sanctions from their professional association.
(3) Life Insurance Companies and Sharia Life Insurance Companies are required to adjust Experts in sufficient numbers according to the type and business lines they operate, and considering business complexity. (4) Experts as referred to in paragraph (3) must meet the following requirements:
a. have life insurance or Sharia life insurance expertise certificates with the lowest level one level below the highest qualification from Professional Certification Institutions in the field of insurance; b. have expertise certificates in accordance with the business lines operated from Professional Certification Institutions in the field of insurance;
c. have work experience in the field of risk management for at least 3 (three) years; and
d. are not currently subject to sanctions from their professional association.
(5) Further provisions regarding the adjustment of the number of Experts as referred to in paragraph (3) and the requirements of Experts as referred to in paragraph (4) are regulated in OJK Circular Letters.

Third Section
Experts for Reinsurance Companies and Sharia Reinsurance Companies

Article 57
(1) Reinsurance Companies and Sharia Reinsurance Companies are required to employ at least 1 (one) Expert.
(2) Experts as referred to in paragraph (1) must meet the following requirements:
a. have general insurance or Sharia general insurance expertise certificates with the highest level from Professional Certification Institutions in the field of insurance; b. have work experience in the field of reinsurance risk management for at least 3 (three) years; and
c. are not currently subject to sanctions from their professional association.
(3) Reinsurance Companies and Sharia Reinsurance Companies are required to adjust Experts in sufficient numbers according to the type and business lines they operate, and considering business complexity. (4) Experts as referred to in paragraph (3) must meet the following requirements:
a. have general insurance or Sharia general insurance expertise certificates with the lowest level one level below the highest qualification from Professional Certification Institutions in the field of insurance; b. have expertise certificates in accordance with the business lines operated from Professional Certification Institutions in the field of insurance;
c. have work experience in the field of risk management for at least 3 (three) years; and
d. are not currently subject to sanctions from their professional association.
(5) Further provisions regarding the adjustment of the number of Experts as referred to in paragraph (3) and the requirements of Experts as referred to in paragraph (4) are regulated in OJK Circular Letters.

Fourth Section
Experts at Offices Outside the Headquarters

Article 58
(1) Companies are required to appoint 1 (one) Expert with the lowest level 1 (one) level below the highest qualification at each office outside the headquarters that has the authority to make decisions regarding the acceptance or rejection of coverage and/or claims. (2) Experts as referred to in (1) must meet the following requirements:
a. have expertise certificates in accordance with the scope of business with the lowest level 1 (one) level below the highest qualification from Professional Certification Institutions in the field of insurance; b. have work experience in the field of insurance risk management for at least 2 (two) years; and
c. are not currently subject to sanctions from their professional association.

Fifth Section
Actuaries

Article 59
(1) Companies are required to appoint 1 (one) actuary as the Company Actuary (appointed actuary).
(2) Companies are required to employ actuaries in sufficient numbers according to the type and business lines they operate, and considering business complexity. (3) Companies are prohibited from appointing Company Actuaries (appointed actuary) who hold concurrent positions as members of the Board of Directors, members of the Board of Commissioners, or members of the DPS at the Company. (4) Company Actuaries (appointed actuary) as referred to in paragraph (1) and actuaries employed by Companies as referred to in paragraph (2) must meet the following requirements:
a. have qualifications as actuaries who have received permits from the competent authority; b. have work experience in the field of insurance actuarial science for at least 3 (three) years; and
c. become members of actuarial professional associations or receive recommendations from actuarial professional associations stating that the person concerned is deemed eligible to work at Companies in Indonesia for actuaries who are not members of actuarial professional associations.

Article 60
(1) Company Actuaries (appointed actuary) as referred to in Article 59 paragraph (1) and actuaries employed by Companies as referred to in Article 59 paragraph (2) must at least perform evaluations of Company obligations to policyholders, insured parties, or participants, and other technical actuarial aspects. (2) In carrying out their duties, Company Actuaries (appointed actuary) as referred to in Article 59 paragraph (1) and actuaries employed by Companies as referred to in Article 59 paragraph (2) must refer to applicable practice standards and professional codes of ethics.

Sixth Section
Internal Auditors

Article 61
(1) Companies are required to have internal audit work units.

(2) The internal audit work unit as referred to in paragraph (1) is directly responsible to the Chief Executive Officer or equivalent.
(3) The internal audit work unit as referred to in paragraph (1) is led by an internal auditor.

Section Seven
Reporting of Appointment and Termination of Experts, Actuaries, and/or Internal Auditors

Article 62
(1) Companies are required to report the appointment and/or termination of Experts, actuaries, and/or internal auditors at most 20 (twenty) working days from the date of appointment and/or termination of the Expert, actuary, and/or internal auditor. (2) The reporting of the appointment of Experts, actuaries, and/or internal auditors as referred to in paragraph (1) must be submitted by the Company's Board of Directors to the OJK using Format 15 as set forth in the Appendix which is an integral part of this OJK Regulation, accompanied by:
a. photocopy of expertise certificates from the Professional Certification Institution, for Experts and actuaries; b. photocopy of identification cards in the form of a resident identity card (KTP) or valid passport;
c. curriculum vitae list accompanied by the latest colored 4 x 6 cm photo; and
d. letter of statement from the relevant professional association stating that no administrative sanction is currently being imposed.
(3) The reporting of the termination of Experts, actuaries, and/or internal auditors as referred to in paragraph (1) must be submitted by the Board of Directors to the OJK using Format 16 as set forth in the Appendix which is an integral part of this OJK Regulation.

CHAPTER IX
BRANCH OFFICES OUTSIDE THE HEAD OFFICE

Article 63
(1) Companies may open branch offices outside the head office within or outside the country.
(2) Companies are fully responsible for every branch office owned or managed by them or whose owner or manager is permitted to use the name of the respective Company.

Article 64
(1) Companies that open branch offices outside the head office which have the authority to make decisions regarding the acceptance or rejection of coverage and/or claims at any time must meet the following requirements:
a. meet the provisions regarding financial health for the last 4 (four) quarters; b. have a low or medium-low risk assessment level;
c. have an Expert who works full-time at the respective branch office; and
d. are not currently subject to administrative sanctions by the OJK.
(2) In the event that the Company cannot meet the requirements as referred to in paragraph (1), the OJK cannot yet record the branch office outside the head office and orders the temporary cessation of operational activities until the requirements as referred to in paragraph (1) are met.

Article 65
The management of branch offices outside the head office that do not have the authority to make decisions regarding the acceptance or rejection of coverage and/or claims may be carried out by the Company or cooperated with other Parties.

Article 66
(1) Companies are required to report every opening of a branch office outside their head office to the OJK.
(2) The reporting of the opening of a branch office outside their head office as referred to in paragraph (1) must be submitted by the Company's Board of Directors to the OJK at most 20 (twenty) working days after the office begins operations using Format 17 as set forth in the Appendix which is an integral part of this OJK Regulation. (3) The reporting of the opening of a branch office outside the head office as referred to in paragraph (2) must be accompanied by:
a. the name of the office and the function of the office; b. the address of the office supported by a letter of statement from the relevant party stating at least the name of the Company;
c. the name of the office leader accompanied by a curriculum vitae; and
d. duties and authorities of the office leader.

Article 67
(1) Companies that will close a branch office outside the head office which has the authority to make decisions regarding the acceptance or rejection of coverage and/or claims must first notify policyholders, insured parties, or participants regarding:
a. the plan to close the branch office outside the head office; and b. procedures for settling rights and obligations.
(2) Procedures for settling rights and obligations as referred to in paragraph (1) letter b must be carried out based on statutory regulations and considering the interests of policyholders, insured parties, or participants.

Article 68
(1) Companies are required to report the closure of a branch office outside the head office which has the authority to make decisions regarding the acceptance or rejection of coverage and/or claims as referred to in Article 67 paragraph (1) in writing by the Company's Board of Directors to the OJK at most 10 (ten) working days counted from the date of closure of the branch office outside the head office. (2) The reporting of the closure of a branch office outside the head office which has the authority to make decisions regarding the acceptance or rejection of coverage and/or claims as referred to in Article 67 paragraph (1) must be submitted by the Board of Directors to the OJK using Format 18 as set forth in the Appendix which is an integral part of this OJK Regulation, accompanied by:
a. proof of notification of the plan to close the branch office outside the head office as referred to in Article 67 paragraph (1) letter a; and b. proof of transfer of services from the closed branch office outside the head office to the head office or the nearest branch office outside the head office.

Article 69
(1) Companies are required to report the closure of a branch office outside the head office that does not have the authority to make decisions regarding the acceptance or rejection of coverage and/or claims in writing by the Company's Board of Directors to the OJK at most 10 (ten) working days counted from the date of closure of the branch office outside the head office. (2) The reporting of the closure of a branch office outside the head office that does not have the authority to make decisions regarding the acceptance or rejection of coverage and/or claims as referred to in paragraph (1) must be submitted by the Company's Board of Directors to the OJK using Format 19 as set forth in the Appendix which is an integral part of this OJK Regulation.

CHAPTER X
MEMBERSHIP IN ASSOCIATIONS

Article 70
(1) Every Company is required to become a member of one Association suitable for its type of business.
(2) Associations as referred to in paragraph (1) must obtain written approval from the OJK.
(3) To obtain approval as referred to in paragraph (2), Associations must submit an application to the OJK accompanied by documents:
a. photocopy of the Articles of Association or house rules; and b. organizational structure.

CHAPTER XI
REGISTRATION OF INSURANCE AGENTS

Article 71
(1) Insurance Agents must be registered with the OJK.
(2) Insurance Agents as referred to in paragraph (1) include Insurance Agents who work for business entities.
(3) Insurance Agents registered with the OJK must hold an agency certificate from the Professional Certification Institution in the field of insurance. (4) The OJK delegates the authority for the registration of Insurance Agents to the Association. (5) To be registered with the OJK, Insurance Agents must submit a registration application to the Association. (6) The delegation of authority as referred to in paragraph (4) is established by the OJK based on the Decision of the Head of the Executive Supervisor for Insurance, Pensions, Financing Institutions, and Other Financial Service Institutions. (7) Further provisions regarding the registration of Insurance Agents are regulated by the Association with the approval of the OJK. (8) Associations report the implementation of Insurance Agent registration as referred to in paragraph (5) to the OJK every period of March, June, September, and December at most on the 20th day of the following month.

Article 72
The OJK has access to data on Insurance Agents managed by the Association.

Article 73
(1) Business entities as referred to in Article 71 paragraph (2) must be registered with the OJK.
(2) Business entities as referred to in paragraph (1) must be in the form of a legal entity:
a. limited liability company; or b. cooperative.
(3) To be registered with the OJK, business entities as referred to in paragraph (1) must submit a registration application to the OJK using Format 20 as set forth in the Appendix which is an integral part of this OJK Regulation, accompanied by:
a. photocopy of the deed of establishment of the business entity accompanied by proof of approval from the competent authority; b. list of Insurance Agents working with proof of agency certification; and
c. proof of cooperation agreement between the Insurance Company and the business entity.
(4) The OJK provides approval, request for document completeness, or rejection of the registration application as referred to in paragraph (3) within a maximum period of 20 (twenty) working days since the registration application was received. (5) Applicants must submit document completeness as referred to in paragraph (4) at most 20 (twenty) working days from the date of the letter requesting document completeness from the OJK. (6) In the event that the applicant has submitted document completeness as referred to in paragraph (5), the OJK provides approval or rejection according to the provisions as referred to in paragraph (1). (7) If within 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (5), the OJK has not received a response to the request for document completeness, the applicant is deemed to have cancelled the registration application. (8) In the event that the registration application as referred to in paragraph (4) is approved, the OJK sends a letter of registration to the applicant. (9) In the event that the OJK rejects the registration application as referred to in paragraph (4), the rejection must be done in writing accompanied by the reasons.

CHAPTER XII
CHANGE OF OWNERSHIP

Article 74
(1) Every change of ownership of the Company must first obtain approval from the OJK.
(2) In the event that the change of ownership as referred to in paragraph (1) is caused by an increase in Paid-up Capital, the capital increase can only be done in the form of:
a. cash deposits; b. transfer of profit balances;
c. transfer of loans; and/or
d. stock dividends.

Article 75
(1) Companies that have obtained a business license at the time this OJK Regulation is promulgated and will carry out a change of ownership through takeover and/or addition of new shareholders must adjust the provisions regarding Paid-up Capital as referred to in Article 6. (2) Companies that will carry out a change of ownership through the addition of new shareholders who are the result of inheritance are exempted from the obligation to adjust regarding Paid-up Capital as referred to in paragraph (1). (3) Companies that will carry out a change of ownership in order to fulfill Minimum Equity as regulated in OJK regulations regarding the financial health of Companies are exempted from the obligation to adjust regarding Paid-up Capital as referred to in paragraph (1).

Article 76
(1) To obtain approval as referred to in Article 74 paragraph (1), prospective shareholders through the Company's Board of Directors must submit an application for approval to the OJK using Format 21 as set forth in the Appendix which is an integral part of this OJK Regulation, accompanied by:
a. planned ownership list; b. data of prospective shareholders as referred to in Article 10 paragraph (2) letter f, if there are new shareholders;
c. draft minutes of the General Meeting of Shareholders (GMS);
d. draft deed of transfer of share rights; e. photocopy of tax notification letters (SPT) for the last 2 (two) years and other documents showing the financial capability and source of funds of prospective individual shareholders; f. photocopy of the Company's financial statements that have been audited by public accountants before the addition of Paid-up Capital, in the event that the change of ownership is caused by an increase in Paid-up Capital and will be carried out in the form of transfer of profit balances, transfer of loans, and/or stock dividends; and g. photocopy of cooperation agreements between foreign legal entity shareholders and Indonesian shareholders as referred to in Article 10 paragraph (2) letter p number 8, for applications for approval of change of ownership involving new foreign legal entity shareholders. (2) The OJK provides approval, request for document completeness, or rejection of the approval application as referred to in paragraph (1) within a maximum period of 20 (twenty) working days since the application for approval of change of ownership was received. (3) In order to provide approval or rejection as referred to in paragraph (2), the OJK conducts:
a. research on the completeness of documents as referred to in paragraph (1); b. analysis of the feasibility of the proposed change of ownership;
c. assessment of capability and propriety against prospective Controllers, in the event that the change of ownership causes a change in Controller; and
d. analysis of compliance with statutory regulations in the field of insurance.
(4) Companies must submit document completeness as referred to in paragraph (2) at most 20 (twenty) working days from the date of the letter requesting document completeness from the OJK. (5) In the event that the Company has submitted document completeness as referred to in paragraph (4), the OJK provides approval or rejection according to the provisions as referred to in paragraph (1). (6) If within 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (2), the OJK has not received a response to the request for document completeness, the Company is deemed to have cancelled the application. (7) In the event that the application as referred to in paragraph (2) is approved, the OJK issues a letter of approval to the Company. (8) In the event that the OJK rejects the application as referred to in paragraph (2), the rejection must be done in writing accompanied by the reasons.

Article 77
(1) Companies are required to report the implementation of the change of ownership as referred to in Article 74 paragraph (1) to the OJK at most 15 (fifteen) working days from the date of receipt of the proof of approval and/or proof of letter of acceptance of notification from the competent authority. (2) The reporting of the change of ownership as referred to in paragraph (1) must be submitted by the Company's Board of Directors to the OJK using Format 22 as set forth in the Appendix which is an integral part of this OJK Regulation, accompanied by:
a. photocopy of the deed of amendment to the Articles of Association accompanied by proof of approval, proof of approval, and/or proof of letter of acceptance of notification from the competent authority; b. deed of transfer of share rights in the event that there is a transfer of share rights; and/or
c. proof of capital increase in the form of photocopy of proof of settlement of Paid-up Capital in the form of cash deposits and photocopy of proof of placement of Paid-up Capital in one of the general banks or sharia general banks legalized by the receiving bank in the event that the change of ownership results in an increase in Paid-up Capital.

CHAPTER XIII
REPORTING

Section One
Reporting of Changes to Articles of Association

Article 78
(1) Companies are required to report to the OJK changes to the Articles of Association including:
a. change of the Company's name; b. change of the location of the Company's head office;
c. reduction of Paid-up Capital for Companies in the form of a limited liability company;
d. addition of Paid-up Capital for Companies in the form of a limited liability company; and/or e. change of the Company's status from closed to open or vice versa, at most 15 (fifteen) working days from the date of approval, letter of acceptance of notification, or legalization from the competent authority. (2) The reporting of the change of the Company's name as referred to in paragraph (1) letter a must be submitted by the Company's Board of Directors to the OJK using Format 23 as set forth in the Appendix which is an integral part of this OJK Regulation, accompanied by documents:
a. photocopy of the deed of amendment to the Articles of Association accompanied by proof of approval from the competent authority for Companies in the form of a limited liability company; and b. photocopy of the taxpayer identification number (NPWP) under the new name of the Company. (3) The reporting of the change of the location of the Company's head office as referred to in paragraph (1) letter b must be submitted by the Company's Board of Directors to the OJK using Format 24 as set forth in the Appendix which is an integral part of this OJK Regulation, accompanied by documents:
a. photocopy of the deed of amendment to the Articles of Association accompanied by proof of approval from the competent authority for Companies in the form of a limited liability company; and b. photocopy of the taxpayer identification number (NPWP) under the new location name of the Company. (4) Reduction of Paid-up Capital as referred to in paragraph (1) letter c may be implemented by the Company while still paying attention to the fulfillment of minimum Paid-up Capital provisions and/or fulfillment of the Company's minimum Equity provisions. (5) The reporting of the reduction of Paid-up Capital for Companies in the form of a limited liability company as referred to in paragraph (1) letter c must be submitted by the Company's Board of Directors to the OJK using Format 25 as set forth in the Appendix which is an integral part of this OJK Regulation, accompanied by documents photocopy of the deed of amendment to the Articles of Association accompanied by proof of approval from the competent authority. (6) Addition of Paid-up Capital as referred to in paragraph (1) letter d can only be done in the form of:
a. cash deposits; b. transfer of profit balances;
c. transfer of loans; and/or
d. stock dividends.
(7) The reporting of the addition of Paid-up Capital of the Company as referred to in paragraph (1) letter d must be submitted by the Company's Board of Directors to the OJK using Format 26 as set forth in the Appendix which is an integral part of this OJK Regulation, accompanied by documents:
a. photocopy of the deed of amendment to the Articles of Association accompanied by proof of letter of acceptance of notification from the competent authority for Companies in the form of a limited liability company; b. proof of addition of Paid-up Capital, namely:

photocopy of proof of capital deposit in one of the general banks, sharia general banks, or sharia business units of general banks in Indonesia and legalized by the receiving bank, in the event that the addition of Paid-up Capital is carried out in the form of cash; or
the Company's financial statements that have been audited by public accountants before the addition of capital, in the event that the addition of Paid-up Capital is carried out in the form of transfer of profit balances, transfer of loans, and/or stock dividends for Companies in the form of a limited liability company;
c. statement letter from shareholders stating that the capital deposit does not come from loans, money laundering activities, and financial crimes in the event that capital addition is carried out in the form of cash as referred to in letter b number 1;
d. photocopy of tax notification letters (SPT) for the last 2 (two) years and other documents showing the financial capability and source of funds of prospective individual shareholders; and e. financial statements of shareholders that have been audited by public accountants and/or the latest financial statements, in the event that shareholders are in the form of legal entities. (8) The reporting of the change of the Company's status from closed to open or vice versa as referred to in paragraph (1) letter e must be submitted by the Company's Board of Directors to the OJK using Format 27 as set forth in the Appendix which is an integral part of this OJK Regulation, accompanied by documents photocopy of the deed of amendment to the Articles of Association accompanied by proof of approval from the competent authority.

Section Two
Reporting of Changes to Members of the Board of Directors, Members of the Board of Commissioners, and/or Members of the Sharia Supervisory Board

Article 79
(1) Companies that make changes to members of the Board of Directors, members of the Board of Commissioners, and/or members of the SSB must report to the OJK at most 15 (fifteen) working days counted from:
a. the date of recording the change of members of the Board of Directors and/or members of the Board of Commissioners in the shareholder register; b. approval by the general meeting; or
c. the date of appointment of SSB members.
(2) The reporting of changes to members of the Board of Directors, members of the Board of Commissioners, and/or members of the SSB of the Company as referred to in paragraph (1) must be submitted by the Company's Board of Directors to the OJK using Format 28 as set forth in the Appendix which is an integral part of this OJK Regulation, accompanied by documents:
a. photocopy of the minutes of the general meeting for Companies in the form of a cooperative legal entity; or b. minutes of the GMS for Companies in the form of a limited liability company legal entity.

Section Three
Reporting of Address Changes

Article 80
(1) Companies are required to report changes to the address of the head office and branch offices outside the head office to the OJK at most 15 (fifteen) working days counted from the date of the change. (2) The reporting of changes to the address of the head office and branch offices outside the head office as referred to in paragraph (1) must be submitted by the Company's Board of Directors to the OJK using Format 29 as set forth in the Appendix which is an integral part of this OJK Regulation, accompanied by data regarding the office address supported by a letter of statement from the relevant party stating at least the name of the Company.

CHAPTER XIV
MERGER AND CONSOLIDATION

Article 81
(1) Companies may carry out:
a. Merger; or b. Consolidation.
(2) Merger or Consolidation as referred to in paragraph (1) letters a and b can only be carried out by Companies in the form of the same legal entity and having similar fields of business.

Article 82
(1) Companies that will carry out a Merger or Consolidation as referred to in Article 81 paragraph (1) are required to submit a plan for the implementation of the Merger or Consolidation to the OJK to obtain approval. (2) To obtain approval for Merger or Consolidation as referred to in paragraph (1), the following provisions must be met:
a. The Merger or Consolidation does not reduce the rights of policyholders, insured parties, or participants, for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, or Sharia Reinsurance Companies; and b. the financial condition of the Insurance Company, Sharia Insurance Company, Reinsurance Company, or Sharia Reinsurance Company resulting from the Merger or Consolidation must meet the provisions regarding financial health levels. (3) The application for approval as referred to in paragraph (1) must be submitted by the Board of Directors to the OJK, using Format 30 as set forth in the Appendix which is an integral part of this OJK Regulation, by attaching:
a. draft minutes of the GMS approving the Merger or Consolidation; b. draft deed of Merger or Consolidation;
c. planned ownership list as referred to in Article 10 paragraph (2) letter e of the resulting Company from the Merger or Consolidation;
d. data of shareholders or members other than PSP as referred to in Article 10 paragraph (2) letter f of the resulting Company from the Merger or Consolidation; e. the latest audited financial statements from the Companies carrying out the Merger or Consolidation; f. proforma financial statements from the resulting Company from the Merger or Consolidation;

g. a work plan for the first 3 (three) years as referred to in Article 10 paragraph (2) letter i of the Company resulting from a Merger or Consolidation; and h. the organizational structure of the Company as referred to in Article 10 paragraph (2) letter b of the Company resulting from a Merger or Consolidation. (4) The application for approval of the implementation plan for a Merger or Consolidation as referred to in paragraph (1) is submitted simultaneously with the application for the assessment of competence and propriety for prospective members of the Board of Directors, members of the Board of Commissioners, members of the Sharia Supervisory Board (DPS), and/or Sharia Compliance Officers (PSP) of the Company. (5) The application for the assessment of competence and propriety for prospective members of the Board of Directors, members of the Board of Commissioners, members of the Sharia Supervisory Board (DPS), and/or Sharia Compliance Officers (PSP) of the Company as referred to in paragraph (4) is carried out by referring to the regulations of OJK regarding the assessment of competence and propriety for key parties of financial service institutions. (6) OJK provides approval, a request for document completeness, or rejection of the approval of the implementation plan for a Merger or Consolidation as referred to in paragraph (1) within a maximum period of 20 (twenty) working days from the date the application is received. (7) In order to provide approval or rejection as referred to in paragraph (1), OJK conducts:
a. an examination of the completeness of documents as referred to in paragraph (3); b. an analysis of the feasibility of the implementation plan for a Merger or Consolidation;
c. an assessment of the competence and propriety of prospective members of the Board of Directors, members of the Board of Commissioners, members of the Sharia Supervisory Board (DPS), and/or Sharia Compliance Officers (PSP); and
d. an analysis of the fulfillment of provisions of legislation in the field of Insurance.
(8) The Board of Directors of the Company must submit the completeness of documents as referred to in paragraph (3) within a maximum of 20 (twenty) working days from the date of the letter requesting document completeness from OJK. (9) In the event that the Board of Directors of the Company has submitted the completeness of documents as referred to in paragraph (3), OJK provides approval or rejection in accordance with the provisions as referred to in paragraph (6). (10) If within 20 (twenty) working days from the date of the letter requesting document completeness as referred to in paragraph (6), OJK has not received a response to the request for document completeness, the Board of Directors of the Company is deemed to have cancelled the application for approval of the implementation plan for a Merger or Consolidation. (11) In the event that the application is approved, OJK issues a letter of approval of the implementation plan for a Merger or Consolidation to the Board of Directors of the Company. (12) Rejection of the application for approval of the implementation plan for a Merger or Consolidation as referred to in paragraph (6) is conducted in writing and accompanied by the reasons for rejection.

Article 83
(1) A Company that has received approval of the implementation plan for a Merger or Consolidation from OJK must hold a General Meeting of Shareholders (GMS) that approves the Merger or Consolidation within a maximum of 60 (sixty) working days calculated from the date of the OJK approval letter. (2) In the event that the implementation of the GMS approving the implementation plan for a Merger or Consolidation does not comply with the time limit as referred to in paragraph (1), the OJK approval letter becomes invalid.

Article 84
(1) A Company receiving a Merger must report the implementation of the GMS approving the Merger to OJK no later than 10 (ten) working days calculated from the date of the GMS. (2) The reporting of the implementation of the GMS approving the Merger as referred to in paragraph (1) must be submitted by the Board of Directors to OJK using Format 33 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by:
a. a photocopy of the minutes of the GMS approving the Merger; b. a photocopy of the Merger Deed; and
c. a document stating that the Company has no tax debts from the competent authority.
(3) In the context of reporting the implementation of the GMS approving the Merger as referred to in paragraph (1), the Company receiving the Merger may submit an application for a license to establish a Sharia Unit previously owned by the Company merging into the Company under its name to OJK. (4) The application for a license to establish a Sharia Unit as referred to in paragraph (3) must be submitted by the Board of Directors to OJK using Format 32 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by the license to establish a Sharia Unit owned by the Company merging into the Company.

(5) Based on the reporting of the implementation of the GMS approving the Merger as referred to in paragraph (1) and the application for a license to establish a Sharia Unit (if any) as referred to in paragraph (4), OJK:
a. conducts an examination of the completeness of documents as referred to in paragraph (2) and paragraph (4); b. revokes the business license and/or the license to establish a Sharia Unit (if any) of the Company merging into the Company, which becomes effective calculated from the date the Articles of Association are approved, agreed upon, or notified to the competent authority; and
c. provides approval or rejection of the application for a license to establish a Sharia Unit to the Company resulting from the Merger, which becomes effective calculated from the date the Articles of Association are approved, agreed upon, or notified to the competent authority (if any).
(6) The provision of approval or rejection of the application for a license to establish a Sharia Unit of the Company resulting from the Merger as referred to in paragraph (5) letter c is conducted within a maximum of 20 (twenty) working days after the reporting documents as referred to in paragraph (2) are received in complete form. (7) In the event that OJK rejects the establishment of a license as referred to in paragraph (5) letter c, the rejection is accompanied by a written explanation.

Article 85
The Company resulting from a Merger must report the implementation of the Merger to OJK accompanied by the Articles of Association that have been approved by the competent authority to OJK no later than 20 (twenty) working days calculated from the date of approval.

Article 86
(1) The Company resulting from a Consolidation must report the implementation of the GMS approving the Consolidation to OJK no later than 10 (ten) working days calculated from the date of the GMS. (2) The reporting of the implementation of the GMS approving the Consolidation as referred to in paragraph (1) must be submitted by the Board of Directors to OJK using Format 33 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by:
a. a photocopy of the minutes of the GMS approving the Consolidation; b. a photocopy of the Consolidation Deed; and
c. a document stating that the Company has no tax debts from the competent authority.
(3) In the context of reporting the implementation of the GMS approving the Consolidation as referred to in paragraph (1), the Company receiving the Consolidation may submit an application for a license to establish a Sharia Unit previously owned by the Company merging into the Company under its name to OJK. (4) The application for a license to establish a Sharia Unit as referred to in paragraph (3) must be submitted by the Board of Directors to OJK using Format 34 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by the license to establish a Sharia Unit owned by the Company merging into the Company.

(5) Based on the reporting of the implementation of the GMS approving the Consolidation as referred to in paragraph (1) and the application for a license to establish a Sharia Unit (if any) as referred to in paragraph (4), OJK:
a. conducts an examination of the completeness of documents as referred to in paragraph (2) and paragraph (4); b. revokes the business license and/or the license to establish a Sharia Unit (if any) of the Company merging into the Company, which becomes effective calculated from the date the Articles of Association are approved, agreed upon, or notified to the competent authority;
c. provides approval or rejection of the business license to the Company resulting from the Consolidation, which becomes effective calculated from the date the Articles of Association are approved, agreed upon, or notified to the competent authority; and
d. provides approval or rejection of the license to establish a Sharia Unit to the Company resulting from the Consolidation, which becomes effective calculated from the date the Articles of Association are approved, agreed upon, or notified to the competent authority (if any). (6) The provision of approval or rejection of the business license and/or the license to establish a Sharia Unit as referred to in paragraph (5) letters c and d is conducted within a maximum of 20 (twenty) working days after the reporting documents as referred to in paragraph (2) and paragraph (4) are received in complete form. (7) In the event that OJK rejects the establishment of a business license as referred to in paragraph (5) letters c and d, the rejection is accompanied by a written explanation. (8) Before the approval of the business license as referred to in paragraph (5) letters c and d is granted, the Company is prohibited from conducting Insurance Business activities.

Article 87
The Company resulting from a Consolidation must report the implementation of the Consolidation to OJK accompanied by the Articles of Association that have been approved by the competent authority to OJK no later than 20 (twenty) working days calculated from the date of approval.

Article 88
Mergers and Consolidations must be carried out in accordance with the provisions of legislation.

CHAPTER XV
SANCTIONS

Article 89
(1) A Company that does not fulfill the provisions as referred to in Article 3 paragraph (1), Article 4 paragraph (1) and paragraph (3), Article 4 paragraph (4), paragraph (5), and paragraph (9), Article 5 paragraph (3), Article 6 paragraph (5) and paragraph (6), Article 7 paragraph (2), paragraph (3), and paragraph (4), Article 8 paragraph (6), Article 9 paragraph (1), Article 11 paragraph (1), Article 17 paragraph (1), paragraph (3), paragraph (5), paragraph (6), and paragraph (7), Article 18 paragraph (2) and paragraph (3), Article 20 paragraph (2), Article 21 paragraph (1), paragraph (2), and paragraph (3), Article 22 paragraph (1), Article 24 paragraph (1), paragraph (2), and paragraph (3), Article 27 paragraph (1) and paragraph (2), Article 28 paragraph (1), Article 29 paragraph (1), paragraph (3), paragraph (5), and paragraph (6), Article 30 paragraph (1) and paragraph (6), Article 31 paragraph (1), Article 32 paragraph (2), paragraph (3), and paragraph (6), Article 33 paragraph (1) and paragraph (2), Article 48 paragraph (1), paragraph (2), paragraph (3), paragraph (5), and paragraph (6), Article 49 paragraph (1), Article 50 paragraph (3), paragraph (4), paragraph (5), and paragraph (6), Article 51 paragraph (1), Article 52 paragraph (1), Article 53 paragraph (1), Article 54 paragraph (1) and paragraph (2), Article 55 paragraph (1) and paragraph (3), Article 56 paragraph (1) and paragraph (3), Article 57 paragraph (1) and paragraph (3), Article 58 paragraph (1), Article 59 paragraph (1), paragraph (2), and paragraph (3), Article 61 paragraph (1), Article 62 paragraph (1), Article 64 paragraph (1), Article 66 paragraph (1), Article 67 paragraph (1) and paragraph (2), Article 68 paragraph (1), Article 69 paragraph (1), Article 70 paragraph (1), Article 71 paragraph (1), Article 74 paragraph (1) and paragraph (2), Article 75 paragraph (1), Article 77 paragraph (1), Article 78 paragraph (1) and paragraph (6), Article 79 paragraph (1), Article 80 paragraph (1), Article 81 paragraph (2), Article 82 paragraph (1), Article 83 paragraph (1), Article 84 paragraph (1), Article 85, Article 86 paragraph (1) and paragraph (8), Article 87, and Article 88 of this OJK Regulation are subject to administrative sanctions in the form of:
a. written warning; b. restriction of business activities for part or all of the business activities; or
c. revocation of the business license.
(2) A Company that has a Sharia Unit and does not fulfill the provisions as referred to in Article 23 paragraph (1), Article 34 paragraph (1), Article 36 paragraph (1) and paragraph (3), Article 38 paragraph (1), paragraph (2), and paragraph (3), Article 39 paragraph (1) and paragraph (2), Article 40 paragraph (1), Article 41 paragraph (1), Article 42 paragraph (2), Article 43 paragraph (1), Article 44 paragraph (1), paragraph (2), and paragraph (3), Article 45 paragraph (2), Article 46 paragraph (1) and paragraph (2), and Article 47 paragraph (1) of this OJK Regulation are subject to administrative sanctions in a phased manner, namely:
a. warning; b. restriction of Sharia Unit activities, for part or all of the business activities; or
c. revocation of the license to establish a Sharia Unit.
(3) Administrative sanctions as referred to in paragraph (1) are conducted in a phased manner.
(4) In addition to the administrative sanctions as referred to in paragraph (1), OJK may impose additional sanctions in the form of a prohibition from becoming a shareholder, Controller, Board of Directors, Board of Commissioners, or holding executive positions below the Board of Directors in an insurance company.

CHAPTER XVI
OTHER PROVISIONS

Article 90
(1) In the event that OJK has provided an electronic service system (e-licensing), then applications for licensing, approval, or reporting as referred to in Article 10 paragraph (1), Article 13 paragraph (1), Article 16 paragraph (1), Article 20 paragraph (4), Article 23 paragraph (2), Article 24 paragraph (4), Article 26 paragraph (2), Article 27 paragraph (3), Article 31 paragraph (2), Article 36 paragraph (4), Article 38 paragraph (4), Article 43 paragraph (2), Article 44 paragraph (4), Article 51 paragraph (2), Article 62 paragraph (3), Article 66 paragraph (2), Article 68 paragraph (2), Article 69 paragraph (2), Article 73 paragraph (3), Article 76 paragraph (1), Article 77 paragraph (2), Article 78 paragraph (2), paragraph (3), paragraph (5), paragraph (7), and paragraph (8), Article 79 paragraph (2), Article 80 paragraph (2), Article 82 paragraph (3), Article 84 paragraph (2) and paragraph (4), and Article 85, and Article 86 paragraph (2) are submitted to OJK online through OJK's data communication network system. (2) Further provisions regarding electronic services (e-licensing) as referred to in paragraph (1) are regulated in an OJK Circular Letter.

Article 91
(1) Professional Certification Institutions must be registered with OJK.
(2) To be registered with OJK, the Professional Certification Institution as referred to in paragraph (1) must submit an application to OJK accompanied by:
a. proof of the license of the Professional Certification Institution from another agency designated based on the provisions of legislation; and b. a photocopy of the Articles of Association of the Professional Certification Institution.

CHAPTER XVII
TRANSITIONAL PROVISIONS

Article 92
A Company that submits an application for a business license to OJK before this OJK Regulation is promulgated and has not yet submitted complete application documents for a business license, then the provisions in this OJK Regulation apply.

Article 93
When a policy guarantee program is in effect, the provisions regarding the requirements to attach the initial report of the Guarantee Fund along with proof of the placement of the Guarantee Fund as referred to in Article 10 paragraph (2) letter d are declared invalid for Insurance Companies and Sharia Insurance Companies.

Article 94
A Company that has obtained a business license at the time this OJK Regulation is promulgated is exempted from the obligations as referred to in Article 5 paragraph (1) as long as it does not change the name of the Company.

Article 95
A Company that, at the time this OJK Regulation is promulgated, has employed foreign workers handling functions other than underwriting, actuarial, marketing, and/or information system functions as referred to in Article 50 paragraph (3), may continue to employ the aforementioned foreign workers until the end of the employment contract.

Article 96
(1) General Insurance Companies and Sharia General Insurance Companies that have obtained a business license before this OJK Regulation is promulgated must fulfill the provisions of employing at least 1 (one) General Insurance Expert and Sharia General Insurance Expert according to the type and line of business they operate as referred to in Article 55 within a maximum of 2 (two) years from the date this OJK Regulation is promulgated. (2) Life Insurance Companies and Sharia Life Insurance Companies that have obtained a business license at the time this OJK Regulation is promulgated must fulfill the provisions of employing Life Insurance Experts and Sharia Life Insurance Experts according to the type and line of business they operate as referred to in Article 56 within a maximum of 2 (two) years from the date this OJK Regulation is promulgated.

Article 97
General Insurance Companies, Sharia General Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies that have obtained a business license at the time this OJK Regulation is promulgated must adjust the provisions regarding the appointment of company actuaries (appointed actuary) as referred to in Article 59 paragraph (1) no later than January 1, 2018.

Article 98
Company actuaries (appointed actuary) who have held concurrent positions as Directors at the time this OJK Regulation is promulgated must adjust to the provisions prohibiting concurrent positions as Directors, Board of Commissioners, and DPS at the Company as referred to in Article 59 paragraph (3) within a maximum of 3 (three) years after this OJK Regulation is promulgated.

Article 99
Certificates obtained from associations or institutions, both domestic and foreign, that have conducted certification in the field of Insurance before this OJK Regulation is promulgated are declared valid and effective.

Article 100
Associations or institutions that have conducted certification in the field of Insurance at the time this OJK Regulation is promulgated must fulfill the provisions as a Professional Certification Institution within a maximum of 3 (three) years from the date this OJK Regulation is promulgated.

Article 101
In the event that OJK regulations regarding procedures and methods for imposing administrative sanctions and blocking the assets of insurance companies have not been promulgated, then the provisions regarding procedures and methods for imposing administrative sanctions refer to Government Regulation Number 73 of 1992 concerning the Conduct of Insurance Business as amended several times, lastly by Government Regulation Number 81 of 2008 concerning the Third Amendment to Government Regulation Number 73 of 1992 concerning the Conduct of Insurance Business.

CHAPTER XVIII
CLOSING PROVISIONS

Article 102
At the time this OJK Regulation takes effect, provisions regarding business licensing and institutional organization for Companies are subject to this OJK Regulation.

Article 103
This OJK Regulation takes effect on the date it is promulgated.

In order that everyone knows it, ordering the promulgation of this OJK Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on December 23, 2016
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY,

MULIAMAN D. HADAD
Promulgated in Jakarta on December 28, 2016
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 300 signed A copy in accordance with the original Legal Director 1 Legal Department signed Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHABILITY REGULATION
NUMBER 67/POJK.05/2016
CONCERNING
BUSINESS LICENSING AND INSTITUTIONAL ORGANIZATION OF INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES

I. GENERAL
The OJK Regulation on Business Licensing and Institutional Organization of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies is an implementing regulation that is the mandate of Law Number 40 of 2014 concerning Insurance. The role of Companies in the development of the Insurance industry is very large. Companies and industry players play an important role in creating a healthier, reliable, trustworthy, and competitive insurance industry. The outcome of all these efforts is the growth of the national economy, which ultimately creates common welfare as an effort to realize the nation's ideals. This OJK Regulation is an improvement of the Minister of Finance Decision Number 426/KMK.06/2003 concerning Business Licensing and Institutional Organization of Insurance Companies and Reinsurance Companies. As an improvement effort, this OJK Regulation adopts the mandate in Law Number 40 of 2014 concerning Insurance, which must be regulated in this OJK Regulation, namely:

requirements and procedures for business licensing;
form and procedures for reporting the opening of offices outside the head office;
Controller criteria;
requirements and procedures for obtaining approval to cease being a Controller;
Sharia Compliance Officers (PSP);
types, quantities, and requirements for Insurance Experts and actuaries;
Guarantee Fund;
procedures and requirements for changes in ownership of Insurance Companies;
Mergers or Consolidations of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies;
assignment or delegation of certain authorities to Insurance Business Associations in the context of regulation and/or supervision of Insurance Business;
procedures for adjusting Sharia Compliance Officers (PSP) and sanctions for Insurance Companies that do not adjust Sharia Compliance Officers (PSP);
Separation of Sharia Units and sanctions for Insurance and Reinsurance Companies that do not perform the Separation of Sharia Units; and
procedures for adjusting ownership.
In addition to the aforementioned material, efforts are also made to improve the material in the previously applicable regulations, such as licensing, reporting, office openings, mergers, consolidations, separations, and the application of sanctions. This is an effort to meet the legal needs of the insurance industry.

II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.

Article 2
Sufficiently clear.

Article 3
Sufficiently clear.

Article 4
Paragraph (1)
Letter a
What is meant by transferring its share ownership to Indonesian citizens is that the Company's shareholder transfers its share ownership in the Company to Indonesian citizens and/or Indonesian legal entities that are directly or indirectly wholly owned by Indonesian citizens. Letter b What is meant by making a change in ownership through a public offering mechanism (initial public offering) is that the Company conducts a public offering (initial public offering). Paragraph (2) What is meant by efforts to transfer share ownership to Indonesian citizens includes among others shareholders conducting a limited offering (private placement) to Indonesian citizens and/or Indonesian legal entities that are directly or indirectly wholly owned by Indonesian citizens. Paragraph (3) Sufficiently clear. Paragraph (4) Sufficiently clear. Paragraph (5) Sufficiently clear. Paragraph (6) Sufficiently clear. Paragraph (7) Sufficiently clear. Paragraph (8) Sufficiently clear. Paragraph (9) The Company submits a report on the implementation of the action plan if the realization of the action plan involves changes in the Company's shareholders indirectly. In the event that the realization of the action plan involves changes in the Company's shareholders directly, then the provisions regarding changes in ownership of the Company apply.

Article 5
Paragraph (1)
This provision is intended so that the Company does not use a name that implies that the Company's name is not an Insurance Company, Reinsurance Company, Sharia Insurance Company, or Sharia Reinsurance Company. Paragraph (2) Sufficiently clear. Paragraph (3) Sufficiently clear. Paragraph (4) Sufficiently clear.

Article 6
Sufficiently clear.

Article 7
Sufficiently clear.

Article 8
Sufficiently clear.

Article 9
Sufficiently clear.

Article 10
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Letter a
Number 1
Sufficiently clear.
Number 2
Sufficiently clear.
Number 3
Sufficiently clear.
Number 4
Sufficiently clear.
Number 5
The authority and responsibility of members of the Board of Directors and members of the Board of Commissioners refer to OJK regulations regarding good corporate governance for insurance companies. Letter b Sufficiently clear. Letter c Sufficiently clear. Letter d Provisions regarding the types of assets that can be used as a Guarantee Fund and the minimum amount of the Guarantee Fund that the Company must own refer to OJK regulations regarding the financial health of insurance companies, reinsurance companies, Sharia insurance companies, and Sharia reinsurance companies. Letter e Sufficiently clear. Letter f Sufficiently clear. Letter g Sufficiently clear. Letter h Sufficiently clear. Letter i Sufficiently clear.

Letter j
Clearly stated.
Letter k
Clearly stated.
Letter l
Clearly stated.
Letter m
Clearly stated.
Letter n
Clearly stated.
Letter o
Licensing costs are as regulated in government regulations regarding OJK levies.
Letter p
Number 1
Clearly stated.
Number 2
Clearly stated.
Number 3
Clearly stated.
Number 4
Clearly stated.
Number 5
Provisions regarding guidelines for the implementation of anti-money laundering and counter-terrorism financing programs refer to OJK regulations regarding anti-money laundering and counter-terrorism financing programs for non-bank financial service institutions. Number 6 Provisions regarding guidelines for good corporate governance refer to OJK regulations regarding good corporate governance for insurance companies.

Number 7
Provisions regarding guidelines for investment governance refer to OJK regulations regarding investment governance for insurance companies. Number 8 Clearly stated. Number 9 Clearly stated. Number 10 Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated.
Article 11
Clearly stated.
Article 12
Clearly stated.
Article 13
Clearly stated.
Article 14
Clearly stated.
Article 15
Clearly stated.
Article 16
Clearly stated.
Article 17
Clearly stated.

Article 18
Clearly stated.
Article 19
Clearly stated.
Article 20
Clearly stated.
Article 21
Clearly stated.
Article 22
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
What is meant by the settlement of rights and obligations in these provisions includes the transfer of the portfolio of Sharia insurance participants to the Sharia Unit. Letter b Clearly stated. Paragraph (3) Clearly stated.
Article 23
Clearly stated.
Article 24
Clearly stated.
Article 25
Paragraph (1)
Clearly stated.

Paragraph (2)
Letter a
What is meant by the examination of document completeness includes the correspondence of documents with the provisions required in legislation. Letter b Verification of capital deposits can be carried out, among others, by verifying the receipt of capital deposits by the Company and verifying financial transactions related to capital deposits originating from transactions within the business group (intra-group transaction). Letter c Clearly stated. Letter d Clearly stated. Letter e Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) Clearly stated. Paragraph (7) Clearly stated. Paragraph (8) Clearly stated.
Article 26
Paragraph (1)
What is meant by canceling a business license application includes business license applications canceled by the applicant or the applicant is deemed to have canceled the business license due to the expiration of the time limit for submitting responses to requests for document completeness. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated.
Article 27
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Letter a
Clearly stated.
Letter b
Provisions regarding residence permits and/or work permits for Directors and/or the Board of Commissioners are regulated by the ministry responsible for labor.
Article 28
Paragraph (1)
Clearly stated.
Paragraph (2)
What is included in the State of the Republic of Indonesia is a business entity whose share ownership is held by the State or held by state-owned enterprises by at least 25% (twenty-five percent) of the total nominal shares.
Article 29
Paragraph (1)
Clearly stated.

Paragraph (2)
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
Clearly stated.
Letter d
What is meant by other corporate actions includes among others limited share offers (right issue) where the Controlling Shareholder does not use its right to order securities, so that its share ownership is diluted and it is no longer a Controlling Shareholder. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) Clearly stated. Paragraph (7) Clearly stated. Paragraph (8) Clearly stated. Paragraph (9) Clearly stated.
Article 30
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
Clearly stated.
Letter b
What is meant by non-shareholder is a Party that indirectly has the ability to determine and/or influence the actions of the Directors and/or the Board of Commissioners. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) These provisions are intended to ensure that the Controlling Party always supports the continuity of the Company's business, among others in terms of business development, fulfillment of the Company's financial health, and fulfillment of obligations to policyholders, insured parties, or participants. Paragraph (7) Clearly stated.
Article 31
Clearly stated.
Article 32
Clearly stated.
Article 33
Clearly stated.
Article 34
Paragraph (1)
Clearly stated.
Paragraph (2)
What is meant by the current period is the period in which the Company submits an application for the establishment of a Sharia Unit. For example, if an Insurance Company or Reinsurance Company will apply for the establishment of a Sharia Unit in 2017, then the plan to establish the Sharia Unit must be included in the 2017 business plan.

Article 35
Clearly stated.
Article 36
Clearly stated.
Article 37
Clearly stated.
Article 38
Clearly stated.
Article 39
Clearly stated.
Article 40
Clearly stated.
Article 41
Clearly stated.
Article 42
Clearly stated.
Article 43
Clearly stated.
Article 44
Clearly stated.
Article 45
Clearly stated.
Article 46
Clearly stated.

Article 47
Clearly stated.
Article 48
Clearly stated.
Article 49
Clearly stated.
Article 50
Clearly stated.
Article 51
Clearly stated.
Article 52
Clearly stated.
Article 53
Clearly stated.
Article 54
Clearly stated.
Article 55
Clearly stated.
Article 56
Clearly stated.
Article 57
Clearly stated.
Article 58
Clearly stated.

Article 59
Clearly stated.
Article 60
Clearly stated.
Article 61
Clearly stated.
Article 62
Clearly stated.
Article 63
Clearly stated.
Article 64
Paragraph (1)
What is meant by claim acceptance is claim approval.
Letter a
Provisions regarding financial health refer to OJK regulations regarding financial health.
Letter b
Provisions regarding risk level assessment refer to OJK Regulation regarding risk level assessment for non-bank financial service institutions. Letter c Clearly stated. Letter d Clearly stated. Paragraph (2) Clearly stated.
Article 65
What is meant by cooperating with Other Parties includes among others cooperation between the Company with individuals or limited liability companies that cooperate with the Insurance Company to provide activity venues for the Insurance Company's agents and assist in providing information to the public, policyholders, or insured parties.
Article 66
Clearly stated.
Article 67
Paragraph (1)
Clearly stated.
Paragraph (2)
What is meant by considering the interests of the insured is the settlement of rights and obligations in accordance with the contents of the policy agreement.
Article 68
Clearly stated.
Article 69
Clearly stated.
Article 70
Clearly stated.
Article 71
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Associations that have carried out agent certification can still carry out agent certification by meeting the provisions as a Professional Certification Body within the time limit determined. Paragraph (4) Clearly stated.

Paragraph (5)
Clearly stated.
Paragraph (6)
The delegation of OJK authority to Associations includes among others the formulation of agent codes of ethics, the formation of a council of honor to resolve issues related to agents with Insurance Companies. Paragraph (7) Clearly stated. Paragraph (8) Clearly stated.
Article 72
Clearly stated.
Article 73
Clearly stated.
Article 74
Paragraph (1)
Ownership changes include among others changes in share composition, takeovers, and the addition of new shareholders.
Paragraph (2)
Clearly stated.
Article 75
Paragraph (1)
Clearly stated.
Paragraph (2)
What is meant by ownership change through the addition of new shareholders resulting from inheritance is the existence of new shareholders as a result of the transfer of inheritance rights from previous shareholders. Paragraph (3) Clearly stated.

Article 76
Clearly stated.
Article 77
Clearly stated.
Article 78
Paragraph (1)
Clearly stated.
Paragraph (2)
In the event of a change in Company ownership, the name change process can be processed as long as the ownership change has been approved by OJK. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Reporting of Paid-up Capital reduction is carried out by the Company in the event that the reduction of Paid-up Capital does not result in:
a. changes in share composition; b. takeovers; and/or
c. addition of new shareholders.
Paragraph (6)
Reporting of Paid-up Capital increase is carried out by the Company in the event that the increase of Paid-up Capital does not result in:
a. changes in share composition; b. takeovers; and/or
c. addition of new shareholders.
Paragraph (7)
Clearly stated.
Paragraph (8)
Clearly stated.

Article 79
Clearly stated.
Article 80
Paragraph (1)
What is meant by headquarters and offices outside the headquarters in this paragraph includes headquarters and offices outside the headquarters in the Sharia Unit. Paragraph (2) Clearly stated.
Article 81
Clearly stated.
Article 82
Clearly stated.
Article 83
Clearly stated.
Article 84
Clearly stated.
Article 85
Clearly stated.
Article 86
Clearly stated.
Article 87
Clearly stated.
Article 88
Clearly stated.
Article 89
Clearly stated.

Article 90
Clearly stated.
Article 91
Clearly stated.
Article 92
Clearly stated.
Article 93
Clearly stated.
Article 94
Clearly stated.
Article 95
Clearly stated.
Article 96
Clearly stated.
Article 97
Clearly stated.
Article 98
Clearly stated.
Article 99
Clearly stated.
Article 100
Clearly stated.
Article 101
Clearly stated.

Article 102
Clearly stated.
Article 103
Clearly stated.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5990

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 67 /POJK.05/2016
REGARDING
BUSINESS LICENSING AND INSTITUTIONAL ASPECTS OF INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES

EXAMPLE FORMAT 1 APPLICATION FOR NEW ESTABLISHMENT BUSINESS LICENSE INSURANCE AND REINSURANCE COMPANIES To the Executive Head of Insurance, Pension Fund, Financing Institution, and Other Financial Service Institution Supervision u.p. Director of Institutional and Non-Bank Financial Product Supervision Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 Referring to the Financial Services Authority Regulation Number .../POJK.05/2016 regarding Business Licensing and Institutional Aspects of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby submit an application to obtain a business license as an Insurance Company/ Reinsurance Company/ Sharia Insurance Company/ Sharia Reinsurance Company ):
Name : PT/ Cooperative/ Joint Venture) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....
To complete the aforementioned application, we hereby submit the following documents:
a. photocopy of the deed of establishment of PT/Cooperative/ Joint Venture*) .....
including photocopy of the deed of amendment of the articles of association (if any) accompanied by photocopy of proof of approval, and/or photocopy of proof of receipt of notification from the competent authority; b. organizational structure accompanied by job descriptions, authorities, responsibilities, and work procedures;
c. photocopy of proof of paid-up capital settlement in the form of
term deposits and/or checking accounts in the name of the Company; d. initial guarantee fund report along with proof of placement of guarantee funds e. ownership list; f. data of shareholders or members other than Controlling Shareholders; g. list of Controlling Parties along with information regarding the form of control; h. proof of employing Expert Personnel;
i. work plan for the first 3 (three) years;
j. photocopy of the Company's risk management guidelines;

k. insurance product specifications to be marketed;
l. photocopy of agreements with other parties (if any) and policies
for the transfer of some functions in the conduct of business; m. administration system and data management infrastructure; n. confirmation from the supervisory authority in the country of origin of the foreign party, in the event there is direct participation from foreign parties; o. proof of payment of licensing fees; p. photocopy of initial opening company financial position reports; q. proof of operational readiness; r. proof of employing actuaries and internal auditors; s. personnel field plan including human resource development plan for at least 3 (three) years; t. photocopy of guidelines for the implementation of anti-money laundering programs and counter-terrorism financing; u. photocopy of guidelines for good corporate governance;
v. investment governance guidelines;
w. photocopy of cooperation agreements between foreign corporate shareholder shareholders and Indonesian shareholders, for Companies that have participation from foreign corporate entities;
x. automatic reinsurance support plan, for Insurance Companies*):
and y. retrocession support plan, for Reinsurance Companies*).
We would like to inform that for the purposes of this business license, you can contact Mr./Ms. ..., via email ... or phone number ...
Thus our application and for your attention Sir/Madam*), we express our gratitude.
Board of Directors
………………………………
*) delete what is not necessary

EXAMPLE FORMAT 2 APPLICATION FOR NEW ESTABLISHMENT BUSINESS LICENSE SHARIA INSURANCE OR SHARIA REINSURANCE COMPANIES To the Executive Head of Insurance, Pension Fund, Financing Institution, and Other Financial Service Institution Supervision u.p. Director of Sharia Non-Bank Financial Product Supervision Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 Referring to the Financial Services Authority Regulation Number .../POJK.05/2016 regarding Business Licensing and Institutional Aspects of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby submit an application to obtain a new establishment business license for Sharia Insurance Company or Sharia Reinsurance Company:
Name : PT/ Cooperative/ Joint Venture*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....
To complete the aforementioned application, we hereby submit the following documents:
a. photocopy of the deed of establishment of PT/Cooperative/ Joint Venture*) .....
including photocopy of the deed of amendment of the articles of association (if any) accompanied by photocopy of proof of approval, and/or photocopy of proof of receipt of notification from the competent authority; b. organizational structure accompanied by job descriptions, authorities, responsibilities, and work procedures;
c. photocopy of proof of paid-up capital settlement in the form of
term deposits and/or checking accounts in the name of the Company; d. initial guarantee fund report along with proof of placement of guarantee funds; e. ownership list; f. data of shareholders or members other than Controlling Shareholders. g. list of Controlling Parties along with information regarding the form of control; h. proof of employing Expert Personnel;
i. work plan for the first 3 (three) years;
j. photocopy of the Company's risk management guidelines; k. Sharia Insurance product specifications to be marketed;
l. photocopy of agreements with other parties (if any) and policies
for the transfer of some functions in the conduct of business;

m. administration system and data management infrastructure; n. confirmation from the supervisory authority in the country of origin of the foreign party, in the event there is direct participation from foreign parties; o. proof of payment of licensing fees; p. photocopy of initial opening company financial position reports; q. proof of operational readiness; r. proof of employing actuaries and internal auditors; s. personnel field plan including human resource development plan for at least 3 (three) years; t. photocopy of guidelines for the implementation of anti-money laundering programs and counter-terrorism financing; u. photocopy of guidelines for good corporate governance;
v. investment governance guidelines;
w. photocopy of cooperation agreements between foreign corporate shareholder shareholders and Indonesian shareholders, for Companies that have participation from foreign corporate entities
x. automatic reinsurance support plan, for Sharia Insurance Companies*);
and y. retrocession support plan, for Sharia Reinsurance Companies*); z. photocopy of minutes of the general meeting of shareholders/members*) regarding the appointment of DPS members; aa. proof of approval from the National Sharia Council regarding the appointment of DPS members; bb. photocopy of guidelines for financial management implementation in accordance with Sharia Principles, which at least regulates regarding investment placement both limits, types, and amounts;
cc. photocopy of guidelines for the conduct of Insurance Business in accordance with Sharia Principles, which at least regulates regarding risk spreading;
dd. supporting proof that the employed Expert Personnel has expertise in the field of Sharia Insurance and/or Sharia economics; and ee. proof of DPS approval for Sharia Insurance products. We would like to inform that for the purposes of this business license, you can contact Mr./Ms. ..., via email ... or phone number ... Thus our application and for your attention Sir/Madam*), we express our gratitude. Board of Directors ……………………………… *) delete what is not necessary

EXAMPLE FORMAT 3 APPLICATION FOR BUSINESS LICENSE CONVERSION FROM INSURANCE COMPANY TO SHARIA INSURANCE COMPANY OR CONVERSION FROM REINSURANCE COMPANY TO SHARIA REINSURANCE COMPANY To the Executive Head of Insurance, Pension Fund, Financing Institution, and Other Financial Service Institution Supervision u.p. Director of Sharia Non-Bank Financial Product Supervision Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 Referring to the Financial Services Authority Regulation Number .../POJK.05/2016 regarding Business Licensing and Institutional Aspects of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby submit an Application for business license conversion from Insurance Company to Sharia Insurance Company/conversion from Reinsurance Company to Sharia Reinsurance Company*):
Name : PT/ Cooperative/ Joint Venture*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....
To complete the aforementioned application, we hereby submit the following documents:
a. organizational structure accompanied by job descriptions, authorities, responsibilities, and work procedures; b. initial Guarantee Fund report along with proof of placement of Guarantee Funds;
c. ownership list;
d. data of shareholders or members other than CSP; e. list of Controlling Parties along with information regarding the form of control; f. proof of employing Expert Personnel; g. work plan for the first 3 (three) years; h. photocopy of the Company's risk management guidelines;
i. photocopy of agreements with other parties (if any) and policies
for the transfer of some functions in the conduct of business; j. administration system and data management infrastructure that supports the preparation and submission of reports to OJK;

k. confirmation from the supervisory authority in the country of origin of the Foreign Party, in the event there is direct participation from Foreign parties;
l. proof of payment of licensing fees;
m. photocopy of initial opening company financial position reports; n. proof of operational readiness; o. proof of employing actuaries and internal auditors; p. personnel field plan including human resource development plan for at least 3 (three) years; q. photocopy of guidelines for the implementation of anti-money laundering programs and counter-terrorism financing; r. photocopy of guidelines for good corporate governance of Insurance Companies and Reinsurance Companies; s. investment governance guidelines; t. photocopy of cooperation agreements between shareholders that are foreign corporate entities with Indonesian shareholders, for Companies that have participation from foreign corporate entities; u. automatic reinsurance support plan, for Insurance Companies*);
v. retrocession support plan, for Reinsurance Companies*);
w. business license as an Insurance Company or Reinsurance Company;
x. amendment of the articles of association that includes:
a. one of the purposes and objectives of the Company is to conduct business activities based on Sharia Principles; and b. authorities and responsibilities of the DPS, accompanied by proof of approval, proof of consent, and/or proof of receipt of notification from the competent authority; y. photocopy of minutes of the general meeting of shareholders/members*) that approve the conversion; z. photocopy of minutes of the general meeting of shareholders/members*) regarding the appointment of DPS members; aa. proof of approval from the National Sharia Council regarding the appointment of DPS members; bb. photocopy of guidelines for financial management implementation in accordance with Sharia Principles which at least regulates regarding investment placement both limits, types, and amounts;
cc. photocopy of guidelines for business conduct in accordance with Sharia Principles which
at least regulates regarding risk spreading; dd. supporting proof that the employed expert personnel has expertise in the field of Sharia Insurance and/or Sharia economics; ee. proof of DPS approval for insurance products to be marketed; and ff. plan for the settlement of rights of policyholders or insured parties who are unwilling to become policyholders or participants of the Sharia Insurance Company or Sharia Reinsurance Company resulting from conversion. We would like to inform that for the purposes of this business license, you can contact Mr./Ms. ..., via email ... or phone number ...

Thus our application and for your attention Sir/Madam*), we express our gratitude.
Board of Directors
………………………………
*) delete what is not necessary

EXAMPLE FORMAT 4 APPLICATION FOR BUSINESS LICENSE FOR SEPARATION OF SHARIA UNIT FROM INSURANCE COMPANY OR REINSURANCE COMPANY To the Executive Head of Insurance, Pension Fund, Financing Institution, and Other Financial Service Institution Supervision u.p. Director of Sharia Non-Bank Financial Product Supervision Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 Referring to the Financial Services Authority Regulation Number .../POJK.05/2016 regarding Business Licensing and Institutional Aspects of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby submit an Application for business license for Separation of Sharia Unit from Insurance Company/Reinsurance Company*):
Name : PT/ Cooperative/ Joint Venture*) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....
To complete the aforementioned application, we hereby submit the following documents:
a. photocopy of the deed of minutes of the general meeting of shareholders/members*) approving the Separation; b. photocopy of the separation deed;
c. photocopy of the deed of establishment of PT/Cooperative/ Joint Venture*) .....
including photocopy of the deed of amendment of the articles of association (if any) accompanied by photocopy of proof of approval, and/or photocopy of proof of receipt of notification from the competent authority; d. organizational structure accompanied by job descriptions, authorities, responsibilities, and work procedures; e. initial guarantee fund report along with proof of placement of guarantee funds f. ownership list; g. data of shareholders or members other than Controlling Shareholders. h. list of Controlling Parties along with information regarding the form of control;
i. proof of employing expert personnel;
j. work plan for the first 3 (three) years;

k. photocopy of the Company's risk management guidelines;
l. specifications of the insurance products to be marketed;
m. photocopy of agreements with Affiliated Parties (if any) and policies for the transfer of partial functions in business operations; n. administration system and data management infrastructure; o. confirmation from the supervisory authority in the home country of the Foreign Party, in the event of direct participation by a Foreign Party; p. proof of payment of licensing fees; q. photocopy of the initial/opening financial position report; r. proof of operational readiness; s. proof of employing an actuary and internal auditor; t. human resources field plan, including human resource development plans for at least the first 3 (three) years; u. photocopy of guidelines for implementing anti-money laundering and counter-terrorism financing programs;
v. photocopy of the Company's good corporate governance guidelines;
w. investment governance guidelines;
x. photocopy of cooperation agreements between foreign legal entity shareholders and Indonesian shareholders, for Companies with participation from foreign legal entities;
y. documents fulfilling Company Equity requirements; and z. supporting evidence that employed Experts possess expertise in Sharia insurance and/or Sharia economics. We may inform you that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ... This is our application, and for your attention, Sir/Madam*), we express our gratitude. Board of Directors ……………………………… *) strike out what is unnecessary

EXAMPLE FORMAT 5 APPLICATION FOR TRANSFER OF PARTICIPATION PORTFOLIO FROM SHARIA UNITS TO SHARIA INSURANCE COMPANIES OR SHARIA REINSURANCE COMPANIES To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Head of IKNB Supervision Department 1A Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 Referring to the Financial Services Authority Regulation Number .../POJK.05/2016 on Business Licensing and Institutional Framework for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby submit an application for the transfer of participation portfolios from Sharia Units to Sharia Insurance Companies or Sharia Reinsurance Companies:
Name : PT/ Cooperative/ Joint Venture*) .....
Address : .....
City .....
Province .....
Telephone/Fax No. : .....
Email : .....
To complete the aforementioned application, we hereby submit the following documents:
a. financial position report of the Sharia Unit audited by a public accountant; b. letter of approval for the transfer of rights and obligations from the receiving Sharia Insurance Company/Sharia Reinsurance Company*);
c. participation portfolio in the Sharia Unit;
d. photocopy of the separation deed; and e. photocopy of the minutes of the General Meeting of Shareholders/Meeting of Members*) approving the Separation. We may inform you that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ... This is our application, and for your attention, Sir/Madam*), we express our gratitude. Board of Directors ……………………………… *) strike out what is unnecessary

EXAMPLE FORMAT 6 REPORT ON THE IMPLEMENTATION OF THE TRANSFER OF PARTICIPATION PORTFOLIO FROM SHARIA UNITS AND APPLICATION FOR REVOCATION OF THE LICENSE TO FORM A SHARIA UNIT To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Sharia Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 Referring to the Financial Services Authority Regulation Number .../POJK.05/2016 on Business Licensing and Institutional Framework for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby report the implementation of the transfer of rights and obligations and the application for revocation of the license to form a Sharia Unit from the Insurance/Reinsurance Company*) to the Sharia Insurance/Sharia Reinsurance Company*). As supplementary data, we hereby submit:
a. proof of settlement of the participation portfolio in the Sharia Unit; b. statement letter from the Board of Directors of the Insurance Company or Reinsurance Company*) that all steps to settle the obligations of the Sharia Unit have been carried out, and if claims arise in the future, it becomes the responsibility of the Board of Directors on behalf of the Insurance Company or Reinsurance Company*). We may inform you that for the purposes of this application, you may contact Mr./Ms. ..., via email ... or telephone number ... This is our report, and for your attention, Sir/Madam*), we express our gratitude. Board of Directors
PT/ Cooperative/Joint Venture*) .....
..............................
*) Strike out what is unnecessary

EXAMPLE FORMAT 7 APPLICATION FOR RELEASE OF GUARANTEE FUNDS To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Institutions and Products Director of IKNB Sharia*) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 Referring to the Financial Services Authority Regulation Number .../POJK.05/2016 on Business Licensing and Institutional Framework for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby submit an application for the release of Guarantee Funds:
Name : PT/ Cooperative/ Joint Venture) .....
Address : .....
City .....
Province .....
Telephone/Fax No. : .....
Email : .....
The reason for this application for the release of Guarantee Funds is that we have cancelled the business license application.
We may inform you that for the purposes of this, you may contact Mr./Ms. ..., via email ... or telephone number ...
This is our report, and for your attention, Sir/Madam), we express our gratitude.
Board of Directors
PT/ Cooperative/Joint Venture) .....
..............................
*) For Sharia Insurance Companies or Sharia Reinsurance Companies ) Strike out what is unnecessary

EXAMPLE FORMAT 8 REPORT ON THE IMPLEMENTATION OF BUSINESS ACTIVITIES OF THE COMPANY To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Institutions and Products Director of IKNB Sharia*) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110
Referring to the Financial Services Authority Regulation Number .../POJK.05/2016 on Business Licensing and Institutional Framework for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby report that we have commenced the activities of the Insurance Company/ Sharia Insurance Company/ Reinsurance Company/ Sharia Reinsurance Company) on date .....
As supplementary data, we hereby submit:

proof of insurance activities conducted by the Insurance Company or Sharia Insurance Company, or proof of reinsurance activities conducted by the Reinsurance Company or Sharia Reinsurance Company; and
photocopy of residence permits and/or permits to employ foreign labor issued by the relevant authority for members of the Board of Directors and/or Board of Commissioners who are foreign nationals.
We may inform you that for the purposes of this, you may contact Mr./Ms. ..., via email ... or telephone number ...
This is our report, and for your attention, Sir/Madam), we express our gratitude.
Board of Directors
PT/ Cooperative/Joint Venture) .....
..............................
*) For Sharia Insurance Companies or Sharia Reinsurance Companies ) Strike out what is unnecessary

EXAMPLE FORMAT 9 REPORT ON THE DETERMINATION OF CONTROLLERS To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Institutions and Products Director of IKNB Sharia*) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 Referring to the Financial Services Authority Regulation Number .../POJK.05/2016 on Business Licensing and Institutional Framework for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby report the determination of controllers. As supplementary data, we hereby submit a list of Controllers along with information regarding the form of their control. We may inform you that for the purposes of this, you may contact Mr./Ms. ..., via email ... or telephone number ... This is our report, and for your attention, Sir/Madam), we express our gratitude. Board of Directors
PT/ Cooperative/ Joint Venture).................
..............................
*) For Sharia Insurance Companies or Sharia Reinsurance Companies ) Strike out what is unnecessary

EXAMPLE FORMAT 10 LICENSE TO FORM A SHARIA UNIT To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Sharia Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 Referring to the Financial Services Authority Regulation Number .../POJK.05/2016 on Business Licensing and Institutional Framework for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby submit an application for a license to form a Sharia unit:
Name : PT/ Cooperative/ Joint Venture*) .....
Address : .....
City .....
Province .....
Telephone/Fax No. : .....
Email : .....
To complete the aforementioned application, we hereby submit the following documents:
a. photocopy of the deed of amendment of the Articles of Association of the Insurance Company or Reinsurance Company; b. photocopy of the Board of Directors' decision of the Insurance Company and Reinsurance Company approving the placement of working capital in the Sharia Unit, accompanied by the amount of the working capital placement;
c. photocopy of proof of working capital deposits in the form of time deposits in the name of the Insurance Company and Reinsurance Company at one of the Sharia commercial banks in Indonesia, legalized by the receiving bank, which remains valid during the licensing process for opening the Sharia Unit;
d. data of the Sharia Unit leadership; e. data of the Sharia Supervisory Board (DPS); f. initial financial report of the Sharia Unit separated from the business activities of the Insurance Company and Reinsurance Company; g. work plan for the Sharia Unit to be formed; and h. work plan for the Separation of the Sharia Unit in accordance with applicable regulations, which must at least contain the method of Separation, implementation stages, and duration. We may inform you that for the purposes of this license, you may contact Mr./Ms. ..., via email ... or telephone number ... This is our application, and for your attention, Sir/Madam*), we express our gratitude. Board of Directors ……………………………… *) strike out what is unnecessary

EXAMPLE FORMAT 11 REPORT ON THE IMPLEMENTATION OF BUSINESS ACTIVITIES OF THE SHARIA UNIT To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Sharia Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110
Referring to the Financial Services Authority Regulation Number .../POJK.05/2016 on Business Licensing and Institutional Framework for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby report that we have commenced the activities of the Sharia Insurance Company on date .....
As supplementary data, we hereby submit:

a list of proof of Sharia policies issued; and
a list of business agreements based on Sharia Principles that have been conducted.
We may inform you that for the purposes of this, you may contact Mr./Ms. ..., via email ... or telephone number ...
This is our report, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
PT/ Cooperative/Joint Venture*) .....
..............................
*) Strike out what is unnecessary

EXAMPLE FORMAT 12 REPORT ON THE OPENING OF BRANCH OFFICES OUTSIDE THE HEAD OFFICE OF THE SHARIA UNIT To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Sharia Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 We hereby:
Name : PT/ Cooperative/ Joint Venture*) ...................
Address : ..........................................
submit a report on the opening of Branch Offices outside the head office of the Sharia Unit as follows:
No. City/Regency and Province Address, Telephone No. and Fax No.
Etc.
We may inform you that for the purposes of this, you may contact Mr./Ms. ..., via email ... or telephone number ...
This is our application, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
PT/ Cooperative/Joint Venture *) .....
.........................
*) Strike out what is unnecessary

EXAMPLE FORMAT 13 REPORT ON THE CESSATION OR CLOSURE OF BRANCH OFFICES OUTSIDE THE HEAD OFFICE OF THE SHARIA UNIT To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Sharia Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 We hereby:
Name : PT/ Cooperative/ Joint Venture*) ...................
Address : ..........................................
submit a report on the closure of Branch Offices outside the head office of the Sharia Unit as follows:
No. City/Regency and Province Address, Telephone No. and Fax No.
Etc.
To complete the aforementioned report, we hereby submit proof of notification to policyholders or participants.
We may inform you that for the purposes of this, you may contact Mr./Ms. ..., via email ... or telephone number ...
This is our application, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
PT/ Cooperative/Joint Venture *) .....
.........................
*) Strike out what is unnecessary

EXAMPLE FORMAT 14 REPORT ON THE PLAN TO EMPLOY FOREIGN LABOR To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Institutions and Products Director of IKNB Sharia*) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 Referring to the Financial Services Authority Regulation Number .../POJK.05/2016 on Business Licensing and Institutional Framework for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby report that we plan to appoint foreign labor as follows:
No. Name Position Country of Origin Duration of Employment etc.
As supplementary data, we hereby submit the following documents:
a. a list of resumes of the employed foreign labor, accompanied by photocopies of documents reflecting their field of expertise; b. an annual education and training program plan during the employment of the aforementioned foreign labor; and
c. a placement plan and field of responsibility for the foreign labor.
We may inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ...
This is our report, and for your attention, Sir/Madam), we express our gratitude.
Board of Directors
PT/ Cooperative) ....................
……………………………
*) For Sharia Insurance Companies or Sharia Reinsurance Companies ) Strike out what is unnecessary

EXAMPLE FORMAT 15 REPORT ON THE APPOINTMENT OF EXPERTS, ACTUARIES, AND/OR INTERNAL AUDITORS OF GENERAL INSURANCE COMPANIES AND GENERAL SHARIA INSURANCE COMPANIES To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Institutions and Products Director of IKNB Sharia*) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110
Referring to the Financial Services Authority Regulation Number .../POJK.05/2016 on Business Licensing and Institutional Framework for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby report that we have appointed Expert ......... starting from date .....
As supplementary data, we hereby submit the following documents:
a. photocopy of expertise certificates from the Professional Certification Body, for Experts and actuaries; b. photocopy of identification cards such as ID cards or valid passports;
c. a list of resumes accompanied by the latest 4 x 6 cm color photos; and
d. a letter of recommendation from the relevant professional association stating that no sanctions are currently being imposed.
We may inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ...
This is our report, and for your attention, Sir/Madam), we express our gratitude.
Board of Directors
PT/ Cooperative) ....................
……………………………
*) For Sharia Insurance Companies or Sharia Reinsurance Companies ) Strike out what is unnecessary

EXAMPLE FORMAT 16 REPORT ON THE DISMISSAL OF EXPERTS, ACTUARIES, AND/OR INTERNAL AUDITORS OF GENERAL INSURANCE COMPANIES AND GENERAL SHARIA INSURANCE COMPANIES To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Institutions and Products Director of IKNB Sharia *) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110
Referring to the Financial Services Authority Regulation Number /POJK.05/2014 on Business Licensing and Institutional Framework for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby report that we have dismissed Expert ......... starting from date .....
We may inform you that for the purposes of this report, you may contact Mr./Ms. ..., via email ... or telephone number ...
This is our report, and for your attention, Sir/Madam), we express our gratitude.
Board of Directors
PT/ Cooperative) ....................
……………………………
*) For Sharia Insurance Companies or Sharia Reinsurance Companies ) Strike out what is unnecessary

EXAMPLE FORMAT 17 REPORT ON THE OPENING OF BRANCH OFFICES OUTSIDE THE HEAD OFFICE To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Institutions and Products Director of IKNB Sharia*) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 We hereby:
Name : PT/ Cooperative/ Joint Venture*) ...................
Address : ..........................................
submit a report on the opening of Branch Offices outside the head office as follows:
No. City/Regency and Province Address, Telephone No. and Fax No.
Etc.
To complete the aforementioned report, we hereby submit the following documents:
a. office name and office function; b. office address supported by a letter of recommendation from the relevant party stating at least the name of the Company;
c. office leadership name accompanied by a list of resumes; and
d. duties and authority of the office leadership.
We may inform you that for the purposes of this, you may contact Mr./Ms. ..., via email ... or telephone number ...
This is our application, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
PT/ Cooperative/Joint Venture ) .....
.........................
*) For Sharia Insurance Companies or Sharia Reinsurance Companies ) Strike out what is unnecessary

EXAMPLE FORMAT 18 REPORT ON THE CLOSURE OF BRANCH OFFICES OUTSIDE THE HEAD OFFICE To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Institutions and Products Director of IKNB Sharia*) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 We hereby:
Name : PT/ Cooperative/ Joint Venture) ...................
Address : ..........................................
submit a report on the closure of Branch Offices outside the head office as follows:
No. City/Regency and Province Address, Telephone No. and Fax No.
Etc.
To complete the aforementioned report, we hereby submit the following documents:
a. proof of notification of the plan to close branch offices outside the head office as referred to in paragraph (1) letter a; and b. proof of the transfer of services from the closed branch offices outside the head office to the head office or the nearest branch office outside the head office. We may inform you that for the purposes of this, you may contact Mr./Ms. ..., via email ... or telephone number ... This is our application, and for your attention, Sir/Madam), we express our gratitude. Board of Directors
PT/ Cooperative/Joint Venture ) .....
.........................
*) For Sharia Insurance Companies or Sharia Reinsurance Companies ) Strike out what is unnecessary

EXAMPLE FORMAT 19 REPORT ON THE CLOSURE OF BRANCH OFFICES OUTSIDE THE HEAD OFFICE THAT DO NOT HAVE THE AUTHORITY TO MAKE DECISIONS REGARDING THE ACCEPTANCE OR REJECTION OF INSURANCE AND/OR DECISIONS REGARDING THE ACCEPTANCE OR REJECTION OF CLAIMS To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Institutions and Products Director of IKNB Sharia*) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 We hereby:
Name : PT/ Cooperative/ Joint Venture) ...................
Address : ..........................................
submit a report on the closure of Branch Offices outside the head office that do not have the authority to make decisions regarding the acceptance or rejection of insurance and/or claims as follows:
No. City/Regency and Province Address, Telephone No. and Fax No.
Etc.
We may inform you that for the purposes of this, you may contact Mr./Ms. ..., via email ... or telephone number ...
This is our application, and for your attention, Sir/Madam), we express our gratitude.
Board of Directors
PT/ Cooperative/Joint Venture *) .....
.........................
*) For Sharia Insurance Companies or Sharia Reinsurance Companies ) Strike out what is unnecessary

EXAMPLE FORMAT 20 APPLICATION FOR REGISTRATION OF BUSINESS ENTITIES EMPLOYING INSURANCE AGENTS To the Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of IKNB Supporting Services Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110 We hereby:
Name : PT/ Cooperative/ Joint Venture *).......................................
Address : ...........................................
Apply for registration as a business entity employing insurance agents.
Before Amendment After Amendment
Name of Shareholder
Total Value of Shares (Rp)
Name of Shareholder
Total Value of Shares (Rp)
As supplementary data, we hereby submit:

the deed of establishment of the business entity accompanied by proof of approval from the relevant authority;
a list of Insurance Agents working with proof of agency certification; and
proof of cooperation agreements between the Insurance Company and the business entity.
We may inform you that for the purposes of this, you may contact Mr./Ms. ..., via email ... or telephone number ...
This is our application, and for your attention, Sir/Madam*), we express our gratitude.
Board of Directors
PT/ Cooperative/ Joint Venture .................
..............................
*) strike out what is necessary

EXAMPLE FORMAT 21 APPLICATION FOR APPROVAL OF CHANGE IN COMPANY OWNERSHIP

To the
Executive Head of Insurance, Pension Fund, Financing Institution, and Other Financial Services Supervision u.p. Director of Institutional Affairs and IKNB Products Director of Sharia IKNB*) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Hereby we:
Name : PT/Cooperative/Joint Venture).......................................
Address : ...........................................

report that in accordance with the General Meeting of Shareholders dated ......................, a share ownership adjustment has been made, as follows:

Before Change	After Change
Name of Shareholder	Total Value of Shares (Rp)

As supporting data, we enclose the following:

proposed ownership list;
data on prospective shareholders, if there are new shareholders;
draft minutes of the General Meeting of Shareholders/Meeting of Members);
draft deed of transfer of share rights;
photocopy of tax notification letters for the last 2 (two) years and
other documents showing the financial capacity and funding sources of individual shareholders;
photocopy of the Company's financial statements audited by a public
accountant before the addition of Paid-up Capital); and
photocopy of cooperation agreements between foreign legal entity
shareholders and Indonesian shareholders).

We would like to inform that for these purposes, you may contact Mr./Ms. ..., via email ... or telephone number ...

This application is submitted, and we thank you for your attention, Mr./Madam).
Board of Directors
PT/Cooperative/Joint Venture .................
..............................
*)For Sharia Insurance Companies or Sharia Reinsurance Companies )Cross out what is not needed

EXAMPLE FORMAT 22 REPORT ON THE IMPLEMENTATION OF CHANGE IN COMPANY OWNERSHIP

Hereby we:
Name : PT/Cooperative/Joint Venture).......................................
Address : ...........................................

report that in accordance with the General Meeting of Shareholders dated ......................, a share ownership adjustment has been made, as follows:

Before Change	After Change
Name of Shareholder	Total Value of Shares (Rp)

As supporting data, we enclose the following:

photocopy of the amended Articles of Association accompanied by proof of approval,
proof of consent, and/or proof of notification receipt from the competent authority;
deed of transfer of share rights in the event of a transfer of share rights; and
proof of capital increase in the form of a photocopy of proof of settlement of Paid-up Capital
in the form of cash deposits and a photocopy of proof of placement of Paid-up Capital in one of the general banks or Sharia commercial banks, legalized by the receiving bank in the event that the change in ownership results in an increase in Paid-up Capital.

We would like to inform that for these purposes, you may contact Mr./Ms. ..., via email ... or telephone number ...

This application is submitted, and we thank you for your attention, Mr./Madam).
Board of Directors
PT/Cooperative/Joint Venture) .................
..............................
*)For Sharia Insurance Companies or Sharia Reinsurance Companies )Cross out what is not needed

EXAMPLE FORMAT 23 REPORT ON CHANGE OF COMPANY NAME

Hereby we:
Name : PT/Cooperative/Joint Venture) ...................
Address : ..........................................

report that in accordance with the General Meeting of Shareholders/Meeting of Members) dated .................., a change to the Company's Articles of Association regarding the Company name has been made, as follows:

Number and date of business license decision
Full Name | New Name

As supporting data, we enclose the following documents:

photocopy of the amended Articles of Association accompanied by proof of
consent from the competent authority for Companies in the form of a Limited Liability Company; and
photocopy of the tax identification number (NPWP) under the new name of the Company.

We would like to inform that for these purposes, you may contact Mr./Ms. ..., via email ... or telephone number ...
This application is submitted, and we thank you for your attention, Mr./Madam).
Board of Directors
PT/Cooperative/Joint Venture) .....
……………………
*)For Sharia Insurance Companies or Sharia Reinsurance Companies )Cross out what is not needed

EXAMPLE FORMAT 24 REPORT ON CHANGE OF COMPANY HEAD OFFICE LOCATION

Hereby we report that our Company's head office location at ............................ has been moved with the following data:
old location : .....
Telephone : .....
new location) : .....
Telephone : .....
Date of move : .....

As supporting data, we enclose the following documents:

photocopy of the amended Articles of Association accompanied by proof of
consent from the competent authority for Companies in the form of a Limited Liability Company; and
photocopy of the tax identification number (NPWP) under the new head office location of the Company.

We would like to inform that for these purposes, you may contact Mr./Ms. ..., via email ... or telephone number ...
This application is submitted, and we thank you for your attention, Mr./Madam).
Board of Directors
PT/Cooperative) .....
.........................
*)For Sharia Insurance Companies or Sharia Reinsurance Companies )Cross out what is not needed

EXAMPLE FORMAT 25 REPORT ON REDUCTION OF PAID-UP CAPITAL FOR COMPANIES IN THE FORM OF A LIMITED LIABILITY COMPANY

Hereby we:
Name : PT ...................
Address : ..........................................

report that in accordance with the General Meeting of Shareholders dated .................., a change to the Company's Articles of Association regarding capital reduction has been made, as follows:

Capital Before Change	After Change

Basic capital
with the composition of shareholders as follows:
No. | Name of Shareholder | Total Value of Shares Before Change (Rp) | Total Value of Shares After Change (Rp) ...

The reason for the capital reduction is
………………………..............

As supporting data, we enclose the amended Articles of Association accompanied by proof of consent from the competent authority, which consent we received on date …….................... .

We would like to inform that for these purposes, you may contact Mr./Ms. ..., via email ... or telephone number ...
This application is submitted, and we thank you for your attention, Mr./Madam).
Board of Directors
PT .................
………………………………
*)For Sharia Insurance Companies or Sharia Reinsurance Companies )Cross out what is not needed

EXAMPLE FORMAT 26 REPORT ON INCREASE OF PAID-UP CAPITAL COMPANY

Hereby we:
Name : PT/Cooperative) ..................
Address : .........................................

Capital Before Change	After Change
For Companies in the Form of a Limited Liability Company

Basic Capital
Capital placed and paid up
For Companies in the Form of a Cooperative
Principal Savings
Mandatory Savings
Donations

With the composition of shareholders as follows *):
No. | Name of Shareholder | Total Value of Shares Before Change (Rp) | Total Value of Shares After Change (Rp) ...

As supporting data, we enclose:
a. photocopy of the amended Articles of Association accompanied by proof of notification receipt from the competent authority for Companies in the form of a Limited Liability Company; b. proof of paid-up capital increase, namely:

photocopy of proof of capital deposit in one of the general banks or
Sharia commercial banks in Indonesia and legalized by the receiving bank, in the event that Paid-up Capital increase is made in the form of cash; or
Company financial statements audited by a public accountant before capital increase, in the event that Paid-up Capital increase is made in the form of retained earnings transfer, loan transfer, and/or stock dividends for Companies in the form of a Limited Liability Company;
c. shareholder statement letter stating that the capital deposit does not come from loans, money laundering activities, and financial crimes in the event that capital increase is made in the form of cash;
d. photocopy of tax notification letters for the last 2 (two) years and other documents showing the financial capacity and funding sources of prospective individual shareholders; and e. shareholder financial statements audited by a public accountant and/or the latest financial statements, in the event that shareholders are legal entities, institutions, or cooperative legal entities.

We would like to inform that for these purposes, you may contact Mr./Ms. ..., via email ... or telephone number ...
This application is submitted, and we thank you for your attention, Mr./Madam).
Board of Directors
PT/Cooperative) ..................
………………………………
*) For Sharia Insurance Companies or Sharia Reinsurance Companies *) filled or submitted for companies in the form of a Limited Liability Company

EXAMPLE FORMAT 27 REPORT ON CHANGE OF STATUS OF A LIMITED LIABILITY COMPANY FROM CLOSED LIMITED LIABILITY COMPANY TO OPEN LIMITED LIABILITY COMPANY OR VICE VERSA

Hereby we:
Name : PT…...................................
Address : ...........................................

report that in accordance with the General Meeting of Shareholders dated .................., a change to the Company's Articles of Association regarding the closed/open limited liability company status has been made, as follows:

Article | Content of Article (Before Change) | Content of Article (After Change)

As supporting data, we enclose the amended Articles of Association accompanied by proof of consent from the competent authority, which consent we received on date …….....…..

We would like to inform that for these purposes, you may contact Mr./Ms. ..., via email ... or telephone number ...
This application is submitted, and we thank you for your attention, Mr./Madam).
Board of Directors
PT ............
……………………
*) For Sharia Insurance Companies or Sharia Reinsurance Companies

EXAMPLE FORMAT 28 REPORT ON CHANGE OF BOARD OF DIRECTORS MEMBERS, BOARD OF COMMISSIONERS MEMBERS AND/OR BOARD OF SHARIA SUPERVISORS MEMBERS

Hereby we:
Name : PT/Cooperative/Joint Venture) ..................
Address : ...........................................

report that in accordance with the General Meeting of Shareholders/Meeting of Members*) dated .............., a change to the Company's Articles of Association regarding the Board of Directors, Sharia Supervisory Board and/or Board of Commissioners members) has been made, namely:

Position	Before Change	After Change
Commissioner

As supporting data, we enclose:
a. photocopy of the minutes of the members' meeting for Companies in the form of a cooperative legal entity; and b. photocopy of the minutes of the General Meeting of Shareholders for Companies in the form of a Limited Liability Company. which notification receipt we received on date …….....…..);

We would like to inform that for these purposes, you may contact Mr./Ms. ..., via email ... or telephone number ...
This application is submitted, and we thank you for your attention, Mr./Madam).
Board of Directors
PT/Cooperative/Joint Venture) ..................
………………………………
*) For Sharia Insurance Companies or Sharia Reinsurance Companies

EXAMPLE FORMAT 29 REPORT ON CHANGE OF HEAD OFFICE ADDRESS AND OFFICES OUTSIDE THE HEAD OFFICE

Hereby we report that our Head Office/Office outside the Head Office) at ............................ has been moved with the following data:
Old Address : .....
Telephone : .....
New Address) : .....
Telephone : .....
Date of move : .....

As supporting data, we enclose:
a. complete address data of the head office and/or offices outside the head office; and b. office address supported by a letter of statement from the relevant party stating at least the Company name.

We would like to inform that for these purposes, you may contact Mr./Ms. ..., via email ... or telephone number ...
This application is submitted, and we thank you for your attention, Mr./Madam).
Board of Directors
PT/Cooperative) .....
.........................
*) For Sharia Insurance Companies or Sharia Reinsurance Companies

EXAMPLE FORMAT 30 APPLICATION FOR APPROVAL OF PLAN TO IMPLEMENT MERGER OR ABSORPTION

Hereby we:
Name : PT/Cooperative/Joint Venture) ..................
Address : .........................................

Submit an application for approval of the plan to implement Merger or Absorption, PT/Cooperative/Joint Venture ) ............................... into PT/Cooperative/Joint Venture ) .................................... which is an Insurance Company.

As supporting data, we enclose the following documents:

draft minutes of the General Meeting of Shareholders approving the Merger or Absorption;
draft deed of Merger or Absorption;
proposed ownership list of the Company resulting from the Merger or Absorption;
shareholder or member data other than PSP of the Company resulting from the Merger or Absorption;
latest audited financial statements of the Company conducting the Merger or Absorption;
proforma financial statements of the Company resulting from the Merger or Absorption;
work plan for the first 3 (three) years of the Company resulting from the Merger or Absorption; and
organizational structure of the Company resulting from the Merger or Absorption.

In relation to the above, we request your approval for the implementation plan of the Merger/Absorption *)

We would like to inform that for these purposes, you may contact Mr./Ms. ..., via email ... or telephone number ...

This application is submitted, and we thank you for your attention, Mr./Madam).
Board of Directors
PT/Cooperative) .........................
..........................
*) For Sharia Insurance Companies or Sharia Reinsurance Companies

EXAMPLE FORMAT 31 REPORT ON THE IMPLEMENTATION OF A GENERAL MEETING OF SHAREHOLDERS APPROVING MERGER

Hereby we:
Name : PT/Cooperative/Joint Venture) ..................
Address : .........................................

report that in accordance with the General Meeting of Shareholders/Meeting of Members)
dated ........................................., a Merger has been carried out between PT/Cooperative/Joint Venture) .................................
and PT/Cooperative/Joint Venture)............................... into PT/Cooperative/Joint Venture) .................................... which is an Insurance Company/Reinsurance Company/Sharia Insurance Company/Sharia Reinsurance Company).

As supporting data, we enclose the following documents:

photocopy of the minutes of the General Meeting of Shareholders approving the Merger;
photocopy of the Merger deed;
document stating that the Company has no tax debts from the competent authority.

In relation to the above, we request that you establish the Decision of the Board of Commissioners of the Financial Services Authority regarding the business license for the Insurance Company/Reinsurance Company/Sharia Insurance Company/Sharia Reinsurance Company to PT/Cooperative/Joint Venture) ......................... which is the result
of the merger between PT/Cooperative/Joint Venture ) ..........................
and PT/Cooperative/Joint Venture ) .........................*)

We would like to inform that for these purposes, you may contact Mr./Ms. ..., via email ... or telephone number ...
This application is submitted, and we thank you for your attention, Mr./Madam).
Board of Directors
PT/Cooperative) .....
..........................
*) For Sharia Insurance Companies or Sharia Reinsurance Companies *) choice according to the legal entity form

EXAMPLE FORMAT 32 APPLICATION FOR LICENSE TO ESTABLISH A SHARIA UNIT ONCE OWNED BY A COMPANY MERGING

To the
Executive Head of Non-Bank Financial Industry Supervision u.p. Director of Institutional Affairs and IKNB Products Director of Sharia IKNB*) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to Financial Services Authority Regulation Number /POJK.05/2014 on Business Licensing and Institutional Affairs of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby submit an application for a license to establish a Sharia unit, hereby we:

Name : PT/Cooperative/Joint Venture) ..................
Address : .....
City .....
Province .....
Telephone/fax No. : .....
Email : .....

submit an application for a license to establish the Sharia Unit of PT/Cooperative/ Joint Venture ) ..... which was previously owned by the merging Company.

As supporting data, we enclose the following documents:
a. photocopy of the amended Articles of Association of the Insurance Company or Reinsurance Company; b. photocopy of the Board of Directors decision of the Insurance Company and Reinsurance Company approving the placement of working capital in the Sharia Unit accompanied by the amount of working capital placement;
c. photocopy of proof of working capital deposit in the form of a time deposit under the name of the Insurance Company and Reinsurance Company in one of the Sharia commercial banks in Indonesia, legalized by the receiving bank, which remains valid during the Sharia Unit opening licensing process;
d. Sharia Unit leadership data; e. DPS (Sharia Supervisory Board) data; f. initial financial statements of the Sharia Unit separated from the business activities of the Insurance Company and Reinsurance Company; g. work plan for the Sharia Unit to be formed; and h. work plan for the Separation of the Sharia Unit in accordance with applicable regulations, which at least contains the method of Separation, implementation stages, and duration.

We would like to inform that for reporting purposes, you may contact Mr./Ms. ..., via email ... or telephone number ...
This application is submitted, and we thank you for your attention, Mr./Madam).
Board of Directors
Company/PT/Cooperative) ....................
………………………………
*) For Sharia Insurance Companies or Sharia Reinsurance Companies

EXAMPLE FORMAT 33 REPORT ON THE IMPLEMENTATION OF A GENERAL MEETING OF SHAREHOLDERS APPROVING ABSORPTION

Hereby we:
Name : PT/Cooperative/Joint Venture) ..................
Address : .........................................

report that in accordance with the General Meeting of Shareholders/Meeting of Members*) dated ........................................., a General Meeting of Shareholders approving the Absorption has been held between PT/Cooperative/Joint Venture) ................................. and PT/Cooperative/Joint Venture*)............................... into PT/Cooperative/Joint Venture) .................................... which is an Insurance Company/ Reinsurance Company/Sharia Insurance Company/Sharia Reinsurance Company).

As supporting data, we enclose the following documents:

photocopy of the minutes of the General Meeting of Shareholders approving the Absorption;
photocopy of the Absorption deed;
document stating that the Company has no tax debts from the competent authority.

In relation to the above, we request that you establish the Decision of the Board of Commissioners of the Financial Services Authority regarding the business license for the Insurance Company/Reinsurance Company/Sharia Insurance Company/Sharia Reinsurance Company to PT/Cooperative/Joint Venture) ......................... which is the result of the Absorption between PT/Cooperative/Joint Venture) .......................... and PT/Cooperative/Joint Venture ) .........................*)

We would like to inform that for these purposes, you may contact Mr./Ms. ….., via email ….. or telephone number …..

This application is submitted, and we thank you for your attention, Mr./Madam).
Board of Directors
PT/Cooperative) .....
..........................
*) For Sharia Insurance Companies or Sharia Reinsurance Companies *) choice according to the legal entity form

EXAMPLE FORMAT 34 APPLICATION FOR ESTABLISHMENT OF A SHARIA UNIT PREVIOUSLY OWNED BY A MERGING COMPANY

To the
Executive Head of Non-Bank Financial Industry Supervision via Director of Institutions and Financial Industry Products Director of Sharia Financial Industry*) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Referring to the Financial Services Authority Regulation Number /POJK.05/2014 concerning Business Licensing and Institutional Aspects of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, we hereby submit an application for permission to establish a Sharia unit, with the following details:

Name : PT/Cooperative/Joint Venture) ..................
Address : .....
City .....
Province .....
Telephone/Fax No. : .....
Email : .....

We hereby apply for permission to establish the Sharia Unit of PT/Cooperative/Joint Venture) ..... which was previously owned by the merging company.

As supporting data, we attach the following documents:
a. photocopy of the deed of amendment of the Articles of Association of the Insurance Company or Reinsurance Company; b. photocopy of the Board of Directors' decision of the Insurance Company and Reinsurance Company approving the placement of working capital in the Sharia Unit, accompanied by the amount of the working capital placement;
c. photocopy of proof of working capital deposit in the form of a time deposit in the name of the Insurance Company and Reinsurance Company at one of the general Sharia banks in Indonesia, legalized by the receiving bank, which remains valid during the licensing process for the opening of the Sharia Unit;
d. data on the leadership of the Sharia Unit; e. data on the Sharia Supervisory Board (DPS); f. initial financial report of the Sharia Unit, separated from the business activities of the Insurance Company and Reinsurance Company; g. work plan for the Sharia Unit to be established; and h. work plan for the Separation of the Sharia Unit in accordance with applicable regulations, which must at least contain the method of Separation, implementation stages, and timeframe.

We would like to inform that for reporting purposes, you may contact Mr./Ms. ..., via email address ... or telephone number ...

This application is submitted, and we thank you for your attention.

Board of Directors
Company/PT/Cooperative) ....................

………………………………

*) For Sharia Insurance Companies or Sharia Reinsurance Companies

Established in Jakarta on December 23, 2016

CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY,

MULIAMAN D. HADAD

Signed

Copy consistent with the original
Legal Director
Legal Department

Signed
Yuliana

Financial Services Authority Regulation Number 67/POJK.05/2016 on Business Licensing and Institutional Aspects of Insurance, Sharia Insurance, Reinsurance, and Sharia Reinsurance Companies

Lineage: Amended

Timeline