FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 71 /POJK.04/2017

CONCERNING

DOCUMENT MAINTENANCE BY THE DEPOSITORY AND CLEARING INSTITUTION

BY THE GRACE OF GOD THE ALMIGHTY,

THE COMMISSIONERS' COUNCIL OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that with the enactment of Law Number 21 of 2011 concerning the Financial Services Authority, since December 31, 2012, the functions, duties, and authorities for the regulation and supervision of financial services activities in the capital market sector, including regulations regarding public offerings by shareholders, have transferred from the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority;

b. that to provide clarity and certainty regarding regulations on document maintenance by the Depository and Clearing Institution, existing regulations in the capital market sector concerning document maintenance by the Depository and Clearing Institution issued prior to the establishment of the Financial Services Authority need to be converted into a Financial Services Authority Regulation;

c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Document Maintenance by the Depository and Clearing Institution;

Recalling:

1. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);

DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING DOCUMENT MAINTENANCE BY THE DEPOSITORY AND CLEARING INSTITUTION.

CHAPTER I

GENERAL PROVISIONS

Article 1

In this Financial Services Authority Regulation:

1. Securities are negotiable instruments, namely debt acknowledgment instruments, commercial paper, shares, bonds, debt certificates, Unit Participation in Collective Investment Contracts, futures contracts on Securities, and any derivatives of Securities.
2. The Depository and Clearing Institution is a Party that conducts Central Custodian activities for Custodian Banks, Securities Companies, and other Parties.
3. Exchange Transaction is a contract made by members of the Stock Exchange in accordance with the requirements determined by the Stock Exchange regarding the sale and purchase of Securities, lending and borrowing of Securities, or other contracts regarding Securities or the price of Securities.
4. Issuer is a Party that conducts a public offering.

CHAPTER II

DOCUMENT MAINTENANCE BY THE DEPOSITORY AND CLEARING INSTITUTION

Article 2

The Depository and Clearing Institution is required to administer, store, and maintain records, books, data, and written information related to:
a. the status and activities of account holders of Securities at the Depository and Clearing Institution; b. records regarding the storage of Securities at the Depository and Clearing Institution;
c. the organization of storage and settlement of Exchange Transactions; and
d. the administration and management of the Depository and Clearing Institution as a corporation.

Article 3

Documents as referred to in Article 2 letter a consist of at least:
a. a list of users of the Depository and Clearing Institution's services; and b. records of activities of users of the Depository and Clearing Institution's services, including financial difficulties faced by the company and violations previously committed.

Article 4

Documents as referred to in Article 2 letter b consist of at least:
a. a list of names of Issuers using the Depository and Clearing Institution's services; and b. the quantity and type of Securities whose recording in the Issuer's register of shareholders is represented by the Depository and Clearing Institution.

Article 5

Documents as referred to in Article 2 letter c consist of at least:
a. a list of daily changes in the storage and settlement of Securities, detailing the names of Securities that have changed; b. changes in the hours of storage and settlement at the Depository and Clearing Institution;
c. confidential information that, in the opinion of the Depository and Clearing Institution, is considered to have important and relevant influence on the market in general and/or specific Securities in particular;
d. the settlement of disputes between users of the Depository and Clearing Institution's services; and e. other actions taken in response to emergency trading situations.

Article 6

Documents as referred to in Article 2 letter d consist of at least:
a. the Articles of Association and all its amendments; b. the register of shareholders and its storage administration;
c. minutes of the General Meeting of Shareholders, Board of Directors meetings and/or Board of Commissioners meetings, and committee or panel meetings;
d. changes in management up to one level below the Board of Directors; e. the formation of committees or panels and/or changes in the composition of members of such committees or panels; and f. other documents including correspondence, memoranda, papers, books, notifications, announcements, circulars, and other notes made or received by the Depository and Clearing Institution in connection with the implementation of its business activities.

Article 7

Documents as referred to in Article 2 through Article 6 must be available at all times for the purposes of examination by the Financial Services Authority.

Article 8

Documents as referred to in Article 7 must be stored for a minimum period of 5 (five) years.

CHAPTER III

SANCTION PROVISIONS

Article 9

(1) Without prejudice to criminal provisions in the capital market sector, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties that cause the violation to occur, in the form of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and/or g. cancellation of registration.

(2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, e, f, or g may be imposed with or without prior imposition of an administrative sanction in the form of a written warning as referred to in paragraph (1) letter a.

(3) Administrative sanctions in the form of a fine as referred to in paragraph (1) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (1) letters c, d, e, f, or g.

Article 10

In addition to administrative sanctions as referred to in Article 9 paragraph (1), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 11

The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 9 paragraph (1) and specific actions as referred to in Article 10 to the public.

CHAPTER IV

CLOSING PROVISIONS

Article 12

Upon the commencement of this Financial Services Authority Regulation, the Decision of the Head of the Capital Market Supervisory Agency Number Kep-69/PM/1996 concerning Document Maintenance by the Depository and Clearing Institution, along with Regulation Number X.C.2 which is its attachment, is repealed and declared invalid.

Article 13

This Financial Services Authority Regulation shall come into force upon being promulgated.

This copy is in accordance with the original.
Legal Director 1
Legal Department signed,
Yuliana

In order that everyone may be aware thereof, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on December 21, 2017
CHAIRMAN OF THE COMMISSIONERS' COUNCIL
FINANCIAL SERVICES AUTHORITY, signed,
WIMBOH SANTOSO

Promulgated in Jakarta on December 22, 2017
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed,
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 292

EXPLANATION

OF

FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 71 /POJK.04/2017

CONCERNING

DOCUMENT MAINTENANCE BY THE DEPOSITORY AND CLEARING INSTITUTION

I. GENERAL

That since December 31, 2012, the functions, duties, and authorities for the regulation and supervision of financial services activities in the capital market, insurance, pension funds, financing institutions, and other financial service institutions have transferred from the Minister of Finance and the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority.

In relation to the above, it is necessary to reorganize the existing regulatory structure, particularly those related to the capital market sector, by converting Capital Market Supervisory Agency and Financial Institutions regulations related to the capital market sector into Financial Services Authority Regulations. This reorganization is carried out so that there are Financial Services Authority Regulations related to the capital market sector that are consistent with Financial Services Authority Regulations in other sectors.

Based on the background and aspects mentioned, the Financial Services Authority needs to replace the existing regulations in the capital market sector regulating document maintenance by the Depository and Clearing Institution, namely the Decision of the Head of the Capital Market Supervisory Agency Number Kep-69/PM/1996 concerning Document Maintenance by the Depository and Clearing Institution, along with Regulation Number X.C.2 which is its attachment, into a Financial Services Authority Regulation concerning Document Maintenance by the Depository and Clearing Institution.

II. ARTICLE BY ARTICLE

Article 1

Sufficiently clear.

Article 2

Sufficiently clear.

Article 3

Sufficiently clear.

Article 4

Sufficiently clear.

Article 5

Sufficiently clear.

Article 6

Sufficiently clear.

Article 7

Sufficiently clear.

Article 8

Sufficiently clear.

Article 9

Sufficiently clear.

Article 10

Sufficiently clear.

Article 11

Sufficiently clear.

Article 12

Sufficiently clear.

Article 13

Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6160