Financial Services Authority Regulation Number 8/POJK.04/2019 Concerning Alternative Market Organizers

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FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 8/POJK.04/2019
CONCERNING
ALTERNATIVE MARKET ORGANIZERS
BY THE GRACE OF GOD THE ALMIGHTY
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY

Considering:
a. that in order to follow the development of debt and sukuk securities trading, to expand the scope of debt and sukuk securities traded outside the stock exchange, and to increase the transparency of price formation and liquidity of debt and sukuk securities trading, it is necessary to improve the regulation concerning the organizer of government debt securities trading; b. that based on the considerations as referred to in letter a, it is necessary to establish a Financial Services Authority Regulation concerning Alternative Market Organizers;

Recalling:

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);
Law Number 24 of 2002 concerning Government Debt Securities (State Gazette of the Republic of Indonesia Year 2002 Number 110, Supplement to the State Gazette of the Republic of Indonesia Number 4236);
Law Number 19 of 2008 concerning Sharia State Securities (State Gazette of the Republic of Indonesia Year 2008 Number 70, Supplement to the State Gazette of the Republic of Indonesia Number 4852);
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:
Decree: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING ALTERNATIVE MARKET ORGANIZERS.

CHAPTER I
GENERAL PROVISIONS

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

Securities are negotiable instruments, namely debt acknowledgment instruments, commercial paper, shares, bonds, debt certificates, Unit Participation in Collective Investment Contracts, futures contracts over Securities, and any derivative of Securities.
Securities Transaction is any activity or contract aimed at acquiring, releasing, or using Securities that results in the transfer of ownership or does not result in the transfer of ownership.
Party is an individual, company, joint venture, association, or organized group.
Stock Exchange is a Party that organizes and provides systems and/or facilities to match buy and sell offers of other Parties' Securities with the aim of trading Securities among them.
Electronic Information is one or a collection of electronic data, including but not limited to writing, sound, images, maps, designs, photos, electronic data interchange, email, telegram, telex, telecopy or similar, letters, signs, numbers, access codes, symbols, or perforations that have been processed and have meaning or can be understood by someone who is able to understand them.
Electronic System is a series of electronic devices and procedures that function to prepare, collect, process, analyze, store, display, announce, send, and/or disseminate Electronic Information.
Alternative Market Organizer, hereinafter abbreviated as PPA, is a Party that organizes and provides or uses an Electronic System to match Securities Transactions over debt and/or sukuk securities among service users continuously outside the Stock Exchange.
Sukuk are Sharia securities in the form of certificates or proof of ownership that have equal value and represent an indivisible or undivided share (syuyu'/undivided share) over the underlying assets.
Securities Broker-Dealer for Debt and Sukuk Securities, hereinafter referred to as PPE-EBUS, is a Party that conducts business activities of buying and selling debt and sukuk securities for its own interest and/or its clients.
Controlling Shareholder is a Party that directly or indirectly owns:
a. at least 20% (twenty percent) of the shares issued by the PPA and has voting rights; or b. less than 20% (twenty percent) of the shares issued by the PPA and has voting rights but can be proven to have exercised control, directly or indirectly, over the PPA.
Board of Directors is the limited liability company organ authorized and fully responsible for the management of the limited liability company for the interests of the limited liability company, in accordance with the purpose and objectives of the limited liability company and representing the limited liability company, both inside and outside of court, in accordance with the provisions of the articles of association.
Board of Commissioners is the limited liability company organ tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors.
Issuer is a Party that conducts a Public Offering.
General Meeting of Shareholders, hereinafter abbreviated as GMS, is the limited liability company organ that has authority not delegated to the Board of Directors or Board of Commissioners within limits determined by the Law concerning Limited Liability Companies and/or the articles of association.
State Securities are government debt securities as referred to in Law Number 24 of 2002 concerning Government Debt Securities and Sharia state securities as referred to in Law Number 19 of 2008 concerning Sharia State Securities.

Article 2
(1) Securities Transactions over debt and sukuk securities in the secondary market can be conducted at the Stock Exchange or outside the Stock Exchange. (2) Securities Transactions over debt and sukuk securities outside the Stock Exchange as referred to in paragraph (1) can be conducted through direct negotiation between Parties or through a PPA.

CHAPTER II
BUSINESS ACTIVITIES, CAPITAL, AND SHAREHOLDERS OF PPA

Section One
Business Activities

Article 3
(1) Parties that can conduct business activities as a PPA are limited liability companies.
(2) The limited liability company as referred to in paragraph (1) must obtain a business license as a PPA from the Financial Services Authority. (3) The obligation as referred to in paragraph (2) is exempted for Bank Indonesia in the implementation of open market operations and the Ministry of Finance in the repurchase of State Securities.

Article 4
A PPA may provide other services after first obtaining approval from the Financial Services Authority.

Article 5
A PPA must organize the trading of debt and sukuk securities in an orderly, fair, and efficient manner.

Article 6
A PPA must have its domicile and conduct operational activities within the territory of Indonesia.

Article 7
Securities traded at the PPA include:
a. debt and sukuk securities that have been sold through a public offering; b. State Securities; and/or
c. other debt and sukuk securities determined by the Financial Services Authority.

Article 8
(1) A PPA may provide services to match Securities Transactions with inter-dealer, multi-dealer, or cross-matching execution mechanisms to service users who have met the requirements set by the PPA. (2) A PPA is prohibited from becoming a Party that conducts transactions directly for its own interest within the system it organizes. (3) Parties that can become service users of the PPA as referred to in paragraph (1) include PPE-EBUS, financial service institutions supervised by the Financial Services Authority, and/or other Parties approved by the Financial Services Authority. (4) A PPA may prohibit its service users from conducting transactions over debt and sukuk securities outside the PPA, except at the Stock Exchange.

Section Two
Capital and Shareholders

Article 9
(1) A PPA must have paid-up capital of at least IDR 100,000,000,000.00 (one hundred billion rupiah).
(2) The Financial Services Authority may require PPA shareholders to increase the PPA's capital by considering operational needs or the PPA's business conditions.

Article 10
(1) Controlling shareholders of the PPA must be Indonesian citizens and/or Indonesian legal entities.
(2) A PPA may only be owned by Indonesian citizens, Indonesian legal entities, and/or foreign legal entities that have obtained a license or are under the supervision of a financial services regulator in their home country. (3) Foreign legal entities as referred to in paragraph (2) may directly or indirectly own shares of the PPA of at most 20% (twenty percent) of the PPA's paid-up capital.

Article 11
(1) Parties that can become shareholders of the PPA are Parties approved by the Financial Services Authority.
(2) PPA shareholders must meet integrity and financial feasibility requirements.
(3) Integrity requirements as referred to in paragraph (2) include:
a. having the legal capacity to perform legal acts; b. having good ethics and morals;
c. never having been sentenced for proven criminal acts within a certain period before nomination;
d. never having committed disgraceful acts, proven by submitting at least a Police Record Certificate where the period from the date of issuance to submission to the Financial Services Authority is not more than 6 (six) months or in accordance with the validity period given by the police if less than 6 (six) months; e. never having committed material violations of laws and regulations in the financial services sector; f. having a commitment to comply with laws and regulations and support the policies of the Financial Services Authority; and g. having a commitment to the development of the PPA and a healthy Indonesian capital market. (4) Financial feasibility requirements as referred to in paragraph (2) include:
a. financial capability that can support the development of the PPA's business; b. never having been declared bankrupt and/or never having been a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was declared guilty of causing a company to be declared bankrupt within the last 5 (five) years before nomination; and
c. having a commitment to take necessary measures if the PPA faces financial difficulties.
(5) In the event that a PPA shareholder is a legal entity, the requirement provisions as referred to in paragraph (2) apply mutatis mutandis to the legal entity and/or shareholders, both directly and indirectly, of that legal entity.

Article 12
The application for approval of prospective PPA shareholders to the Financial Services Authority must attach documents as follows:
a. for individuals, including:

a signed curriculum vitae;
a photocopy of the Identity Card or other valid identification;
two (2) sheets of the latest color passport-sized photos measuring 4x6 cm with a red background;
a photocopy of the Taxpayer Identification Number (NPWP);
Police Record Certificate;
proof of financial capability; and
answers to questions according to the format of the Questionnaire listed in the Appendix which is an integral part of this Financial Services Authority Regulation; and
b. for legal entities, including:
a photocopy of the deed of establishment and/or amendment of the articles of association as follows:
a) for Indonesian legal entities, a photocopy of the deed of establishment that has been authenticated by the competent authority, along with the latest amendment of the articles of association that has obtained approval from the competent authority or has issued a notice of acceptance of the amendment of the articles of association from the competent authority; or b) for foreign legal entities, a photocopy of the deed of establishment that has been authenticated along with the latest amendment of the articles of association that has obtained approval from the competent authority in the home country, if there are amendments to the articles of association, and documents required according to the regulations of the home country if the legal entity is a foreign legal entity that is a state or government-owned legal entity;
a photocopy of the Taxpayer Identification Number (NPWP) for Indonesian legal entities;
information regarding Parties controlling the legal entity, directly or indirectly, which must at least contain the name and form of control;
the latest audited financial report;
a list of names and data of members of the Board of Directors, members of the Board of Commissioners, and/or management of the prospective PPA shareholder, including:
a) a signed curriculum vitae; b) a photocopy of the Identity Card or other valid identification; c) two (2) sheets of the latest color passport-sized photos measuring 4x6 cm with a red background; d) a photocopy of the Taxpayer Identification Number (NPWP); and e) Police Record Certificate or police clearance;
a list of names and data of shareholders of the prospective PPA shareholder, including:
a) for individuals:

a signed curriculum vitae;
a photocopy of the Identity Card or valid passport; and
two (2) sheets of the latest color passport-sized photos measuring 4x6 cm with a red background;
b) for legal entities:
the latest articles of association; and
the latest audited financial report; and

if the legal entity is a foreign legal entity operating in the financial services sector, it must be accompanied by a recommendation from the competent supervisory authority in the home country which at least states that:
a) the foreign legal entity has a good reputation; and b) the foreign legal entity has never committed disgraceful acts in the financial field.

Article 13
(1) In order to grant approval or rejection to prospective shareholders as referred to in Article 11, the Financial Services Authority conducts an assessment of capability and propriety of prospective PPA shareholders. (2) The assessment of capability and propriety of prospective PPA shareholders as referred to in paragraph (1) is conducted at least through administrative assessment. (3) In the context of the administrative assessment as referred to in paragraph (2), the Financial Services Authority may conduct clarification with prospective PPA shareholders.

CHAPTER III
MEMBERS OF THE BOARD OF DIRECTORS AND MEMBERS OF THE BOARD OF COMMISSIONERS OF PPA

Article 14
(1) Members of the Board of Directors and members of the Board of Commissioners of the PPA must meet integrity requirements as follows:
a. having the legal capacity to perform legal acts; b. having good ethics and morals;
c. never having been declared bankrupt or having been a member of the Board of Directors or member of the Board of Commissioners who was declared guilty or jointly guilty in causing a company to be declared bankrupt;
d. never having been sentenced for proven criminal acts within a certain period before nomination; e. never having committed disgraceful acts, proven by submitting at least a Police Record Certificate where the period from the date of issuance to submission to the Financial Services Authority is not more than 6 (six) months or in accordance with the validity period given by the police if less than 6 (six) months; f. never having committed material violations of laws and regulations in the financial services sector; and g. having a commitment to the development of the PPA and the Indonesian capital market. (2) Members of the Board of Directors and members of the Board of Commissioners of the PPA must meet competency and expertise requirements as follows:
a. for members of the Board of Directors of the PPA:

having adequate and relevant knowledge in the capital market field related to their position;
having an education level of at least a diploma; and
having experience and expertise in the capital market and/or financial field of at least 2 (two) years in a managerial position in a company operating in the capital market and/or financial services sector; and
b. for members of the Board of Commissioners of the PPA:
having adequate and relevant expertise in the capital market field related to their position; and
having at least 2 (two) years of experience in a company operating in the capital market and/or financial services sector.

Article 15
Members of the Board of Directors of the PPA must have their domicile in Indonesia.

Article 16
(1) A PPA must have at least 2 (two) members of the Board of Directors.
(2) One of the members of the Board of Directors of the PPA must be designated as the Chief Executive Officer.

Article 17
(1) A PPA must have at least 2 (two) members of the Board of Commissioners.
(2) One of the members of the Board of Commissioners of the PPA must be designated as the Chief Commissioner.

Article 18
The submission of prospective members of the Board of Directors or members of the Board of Commissioners of the PPA to the Financial Services Authority must attach documents as follows:
a. a signed curriculum vitae; b. a photocopy of the latest formal education diploma and certificates of expertise or proof of experience in the capital market field;
c. a photocopy of the Identity Card or other valid identification;
d. Police Record Certificate; e. two (2) sheets of the latest color passport-sized photos measuring 4x6 cm with a red background; f. a statement letter from the prospective member of the Board of Directors or member of the Board of Commissioners of the PPA stating that they have met the provisions of Article 14; g. a strategic plan, specifically for prospective members of the Board of Directors of the PPA; and h. answers to questions according to the format of the Questionnaire listed in the Appendix which is an integral part of this Financial Services Authority Regulation.

Article 19
(1) Members of the Board of Directors of the PPA are prohibited from:
a. having an affiliation relationship with other members of the Board of Directors and/or members of the Board of Commissioners of the PPA; b. owning shares and/or being a controller, directly or indirectly, in a service user of the PPA;
c. controlling, directly or indirectly, an Issuer that is the issuer of debt and sukuk securities traded at the PPA;
d. transacting debt and sukuk securities traded at the PPA; and e. holding concurrent positions in any other company.
(2) In the event that a member of the Board of Directors of the PPA owns shares and/or is a controller, directly or indirectly, in a service user of the PPA, those shares must be transferred at the latest 6 (six) months after the GMS appointing the member of the Board of Directors of the PPA. (3) During the period as referred to in paragraph (2), members of the Board of Directors of the PPA are prohibited from using voting rights in the GMS of the aforementioned PPA shareholder. (4) In the event that a member of the Board of Directors of the PPA appointed by the GMS of the PPA already holds Securities of an Issuer traded at the PPA, those Securities are prohibited from being transacted until 6 (six) months after the term of office ends.

Article 20
(1) Each prospective member of the Board of Directors and member of the Board of Commissioners of the PPA must first pass the capability and propriety assessment conducted by the Financial Services Authority before being appointed by the GMS of the PPA. (2) In conducting the capability and propriety assessment as referred to in paragraph (1), the Financial Services Authority may be assisted by resource persons with specific expertise from outside the Financial Services Authority. (3) The capability and propriety assessment of prospective members of the Board of Directors and members of the Board of Commissioners of the PPA as referred to in paragraph (1) is conducted at least through administrative assessment. (4) In the context of the administrative assessment as referred to in paragraph (3), the Financial Services Authority may conduct clarification with prospective members of the Board of Directors and members of the Board of Commissioners of the PPA.

Article 21
The Financial Services Authority has the authority to stop the nomination process for prospective members of the Board of Directors or members of the Board of Commissioners of the PPA if the prospective candidate is undergoing a legal process.

Article 22
The term of office of members of the Board of Directors or Board of Commissioners of the PPA ends automatically if:
a. they lack the legal capacity to perform legal acts; b. they are declared bankrupt or become a member of the Board of Directors or member of the Board of Commissioners who is declared guilty or jointly guilty in causing a company to be declared bankrupt;
c. they are sentenced for committing a criminal act;
d. they are permanently unable to perform duties; e. they are declared not to meet the requirements by the Financial Services Authority; and/or f. they pass away.

CHAPTER IV
OPERATIONAL AND INTERNAL CONTROL OF PPA

Article 23
(1) In carrying out its business activities, a PPA must do the following:
a. provide systems and/or facilities in order to support the trading and supervision of trading of debt and sukuk securities, with the following provisions:

having a system with capacity appropriate to current conditions and anticipation of future needs;
placing data centers and disaster recovery centers within the territory of Indonesia;
conducting periodic testing of system capacity and security;
evaluating system and computer operation data center vulnerabilities against threats from both inside and outside, physical risks, and natural disaster threats;
having an adequate business continuity plan, including having a disaster recovery center;
having human resources with competence in the field of information technology;
having a backup system to overcome system failures;
having a system that can detect and prevent access by unauthorized Parties;
applying continuous supervision and crisis management procedures;
using encryption, authentication, and non-repudiation techniques;
keeping the system free from disturbances;
appointing professional information technology auditors for every material change;
maintaining databases and applications that can reconstruct Securities trading activities;
having a system that displays data of Securities trading with integrity, both data before or after Securities Transactions;
having a Securities Transaction reporting feature connected directly to the Securities Transaction reporting agency;
having a PPA website that publishes Securities Transaction data as soon as possible, at least covering:
a. name and series of Securities; b. transaction price;
c. yield;
d. transaction volume; e. transaction value; and f. transaction settlement date; and
having an adequate system for supervising Securities trading;
b. provide services fairly, effectively, and efficiently to both prospective service users and service users of the PPA without discrimination;
c. have adequate internal control and risk management;
d. have, implement, and develop standard operating procedures needed to support business activities, at least regarding service users, trading, trading supervision, services, systems, regulations, information confidentiality, and business continuity; e. conduct annual review in accordance with independent audit procedure standards and conducted review by the Board of Directors and Board of Commissioners on reports containing recommendations and conclusions from the report; f. administer, store, and maintain records of all service user activities and Securities trading data for at least 5 (five) years; g. make regulations regarding service users, Securities traded, trading, and trading supervision; h. supervise trading activities of Securities conducted by service users;
i. take specific actions over any indications or violations of laws and regulations in the capital market field and/or its regulations; and

j. provide access and support to the Financial Services Authority for supervisory purposes regarding the PPA and its users, including immediate access to transaction data. (2) Auditors as referred to in paragraph (1) letter a number 12 must possess a valid and independent information system certificate from the competent authority.

Article 24
The PPA regulations as referred to in Article 23 letter g include:
a. regulations for PPA users, which at a minimum regulate regarding:

requirements to become a user, which include the capacity and ability of prospective users to conduct Securities Transactions, manage Securities Transaction risks, and settle Transactions;
procedures to become a user;
rights, obligations, and/or prohibitions for users, including the user's obligation to report the settlement of their transactions to the PPA;
examinations of users;
system users representing PPA users;
provisions related to direct order submission facilities for customers;
fees;
reports; and
sanctions for users;
b. regulations on traded Securities, which at a minimum regulate regarding:
criteria for traded Securities; and
procedures for registration and cancellation of Securities to be traded;

c. trading regulations, which at a minimum regulate regarding:

trading procedures;
trading hours;
provisions ensuring fair trading of Securities outside the Stock Exchange based on market mechanisms;
the time when transactions become binding and procedures for transaction settlement;
provisions ensuring the availability of accurate, current, rapidly disseminated, and widespread market information;
use of main and backup trading systems, provisions related to orders, including execution, cancellation, forwarding, and correction;
suspension of trading, continuation of trading in emergency conditions; and
transaction fees; and
d. trading supervision regulations, which at a minimum regulate regarding:
trading supervision parameters, including parameters for suspending trading or users; and
actions taken in the event of indications of unfair trading, including temporary suspension of trading.

CHAPTER V
PROCEDURES FOR PPA LICENSING APPLICATIONS

Article 25
(1) Applications for PPA business licenses are submitted by applicants to the Financial Services Authority according to the format of the Application Letter for Business License as a PPA contained in the Appendix, which is an integral part of this Financial Services Authority Regulation. (2) The business license application as referred to in paragraph (1) is accompanied by the following documents:
a. detailed information regarding the applicant, name, address, telephone number, and facsimile; b. photocopy of the established limited liability company deed that has been approved by the competent authority, along with the articles of association and/or the latest amendment to the articles of association of the limited liability company that has obtained approval or has been issued a notification acceptance letter for the amendment to the articles of association by the competent authority;
c. photocopy of the Taxpayer Identification Number (NPWP);
d. list of names and data of the Board of Directors and Board of Commissioners members of the PPA, including:

signed biographical lists;
photocopy of the highest formal education diploma and certificates of expertise or proof of experience in the capital market field;
photocopy of the Identity Card (KTP) or other valid identification;
Police Record Certificate (SKCK);
latest color passport-sized photos measuring 4x6 cm with a red background, 2 (two) sheets;
statement letter from prospective Board of Directors or Board of Commissioners members of the PPA stating that they have met the provisions of Article 14;
strategic plan, specifically for prospective PPA Board of Directors members; and
answers to questions according to the format of the Questionnaire List as contained in the Appendix, which is an integral part of this Financial Services Authority Regulation; and
e. list of names and data of PPA shareholders, including:
individuals, including:
a) signed biographical lists; b) photocopy of Identity Card (KTP) or other valid identification; c) latest color passport-sized photos measuring 4x6 cm with a red background, 2 (two) sheets; d) photocopy of the Taxpayer Identification Number (NPWP); e) Police Record Certificate (SKCK) or police clearance; f) proof of financial capability; and g) answers to questions according to the format of the Questionnaire List contained in the Appendix, which is an integral part of this Financial Services Authority Regulation; and
legal entities, including:
a) photocopy of the deed of establishment and/or amendment to the articles of association as follows:

for Indonesian legal entities, photocopy of the deed of establishment that has been approved by the competent authority, along with the latest amendment to the articles of association that has obtained approval from the competent authority or has been issued a notification acceptance letter for the amendment to the articles of association by the competent authority; or
for foreign legal entities, photocopy of the deed of establishment that has been approved along with the latest amendment to the articles of association that has obtained approval from the competent authority in the country of origin, if there are amendments to the articles of association, and documents required according to the regulations of the country of origin if the legal entity is a foreign legal entity that is a state-owned or government-owned legal entity;
b) photocopy of the Taxpayer Identification Number (NPWP) for Indonesian legal entities; c) information regarding Parties controlling the legal entity, directly or indirectly, which at a minimum contains the name and form of control; d) audited financial reports for the last year; e) list of names and data of the Board of Directors, Board of Commissioners, and/or managers of the PPA shareholders, including:
signed biographical lists;
photocopy of Identity Card (KTP) or other valid identification;
latest color passport-sized photos measuring 4x6 cm with a red background, 2 (two) sheets;
photocopy of the Taxpayer Identification Number (NPWP); and
Police Record Certificate (SKCK) or police clearance;
f) list of names and data of shareholders of the PPA shareholders, including:
individuals:
(a) signed biographical lists;
(b) photocopy of Identity Card (KTP) or valid passport; and (c) latest color passport-sized photos measuring 4x6 cm with a red background, 2 (two) sheets; and
legal entities:
(a) latest articles of association; and
(b) audited financial reports for the last year; and g) if the legal entity is a foreign legal entity operating in the financial services sector, it must be accompanied by a recommendation from the competent supervisory authority of the country of origin, which at a minimum states that:
the foreign legal entity has a good reputation; and
the foreign legal entity has never committed disgraceful acts in the financial field;
f. the latest audited financial report by an accountant registered with the Financial Services Authority; g. photocopy of bank statements; h. proof of valid deposit of paid-up capital;
i. draft PPA regulations;
j. draft of the trading organization system to be used and its supporting facilities; k. standard operating procedures for business activities;
l. list of PPA users;
m. economic considerations underlying the establishment of the PPA; n. projection of operational plans and PPA mission for the next 3 (three) years; o. organizational structure with job descriptions; and p. information on business premises and photos of office rooms.

Article 26
To process the PPA business license application, the Financial Services Authority may conduct further clarification through face-to-face meetings, request presentations, conduct on-site examinations, and/or request additional documents.

Article 27
In the event that the application does not meet the requirements upon receipt, within at most 30 (thirty) working days from the receipt of the application, the Financial Services Authority provides a notification letter to the applicant stating that:
a. the application does not yet meet the requirements and/or document consistency; or b. the application is rejected.

Article 28
In the event that the submitted application meets the requirements, the Financial Services Authority grants the PPA business license to the applicant within at most 30 (thirty) working days from the receipt of the complete and correct application.

CHAPTER VI
AMENDMENTS TO PPA REGULATIONS AND ARTICLES OF ASSOCIATION

First Section
PPA Regulations

Article 29
(1) PPA regulations and any amendments thereto take effect after obtaining approval from the Financial Services Authority.
(2) The submission of applications for approval of draft regulations or amendments is submitted to the Financial Services Authority accompanied by:
a. reasons for the change and the draft; b. opinions from users;
c. approval from the Board of Commissioners; and
d. opinions from Interested Parties.
(3) The Financial Services Authority provides approval to the applicant within a period of 30 (thirty) working days after the receipt of the complete application for approval of the draft regulations. (4) Within the period as referred to in paragraph (3), the Financial Services Authority may request the PPA to change the material of the change in the draft regulations, and/or request additional information related to the said regulations. (5) The application for approval of draft regulations is calculated from the date of receipt of the changes and/or additional information as referred to in paragraph (4) by the Financial Services Authority.

Second Section
PPA Articles of Association

Article 30
(1) Any amendment to the PPA articles of association must obtain approval from the Financial Services Authority before being notified or submitted to the Minister of Law and Human Rights for approval. (2) The submission of applications for approval of draft amendments to the articles of association or the amendments is submitted to the Financial Services Authority accompanied by:
a. reasons for the change and the draft; b. opinions from users;
c. minutes of the General Meeting of Shareholders (RUPS) made by a notary registered with the Financial Services Authority;
d. RUPS summons letter; e. RUPS agenda; and f. RUPS attendance list.
(3) The Financial Services Authority provides approval to the applicant within a period of 30 (thirty) working days after the receipt of the complete application for approval of the draft amendments to the articles of association. (4) Within the period as referred to in paragraph (3), the Financial Services Authority may request changes to the material of the change in the draft articles of association or the amendments and/or request additional information related to the said articles of association. (5) The application for approval of the draft articles of association or amendments is calculated from the date of receipt of the changes and/or additional information as referred to in paragraph (4) by the Financial Services Authority.

CHAPTER VII
PPA REPORTS

Article 31
(1) PPAs are required to report to the Financial Services Authority on the following matters:
a. daily transaction activity reports, which must be submitted at the latest on the next trading day; b. daily transaction settlement reports, which must be submitted at the latest on the next working day;
c. monthly recapitulation reports of user transactions, which must be submitted at the latest on the fifth trading day of the following month;
d. annual activity reports, including annual financial reports audited by an accountant registered with the Financial Services Authority, which must be submitted at the latest by the end of the 3rd (third) month after the date of the annual financial report; e. approval and/or rejection of Parties applying as users and/or changes to users, which must be submitted at the latest on the next trading day; f. changes to organizational structure and/or systems, which must be submitted at the latest on the next trading day; g. violations and sanctions imposed on users, which must be submitted at the latest on the next trading day; h. special events, which must be submitted at the latest by the end of the same trading day;
i. resignation of Board of Directors and/or Board of Commissioners members, at the latest 2 (two) working days from when the event is known; and
j. results of the PPA General Meeting of Shareholders (RUPS), at the latest 2 (two) working days from the date of the RUPS, with the condition that the notarial deed of the PPA RUPS must be submitted to the Financial Services Authority at the latest 2 (two) working days after the deed is received by the PPA. (2) The Financial Services Authority may postpone the resignation of Board of Directors or Board of Commissioners members as referred to in paragraph (1) letter i, if such resignation could affect the performance and operations of the PPA.

Article 32
Submission of reports as referred to in Article 30 can be done via printed documents or electronic documents.

CHAPTER VIII
SANCTION PROVISIONS

Article 33
(1) Any party that violates the provisions as referred to in Article 3 paragraph (1), Article 4, Article 5, Article 6, Article 7, Article 8 paragraph (1), paragraph (2), and paragraph (3), Article 9, Article 10, Article 11, Article 12, Article 14, Article 15, Article 16, Article 17, Article 18, Article 19, Article 20 paragraph (1), Article 23, Article 29, Article 30, and Article 31, shall be subject to administrative sanctions. (2) Sanctions as referred to in paragraph (1) are also imposed on parties who cause the occurrence of violations as referred to in paragraph (1). (3) Sanctions as referred to in paragraph (1) and paragraph (2) are imposed by the Financial Services Authority. (4) Administrative sanctions as referred to in paragraph (1) consist of:
a. written warning; b. fines, 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. (5) The procedure for imposing sanctions as referred to in paragraph (3) is carried out in accordance with prevailing legislation. (6) Administrative sanctions as referred to in paragraph (4) letters b, c, d, e, f, or g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (4) letter a. (7) Administrative sanctions in the form of fines as referred to in paragraph (4) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (4) letters c, d, e, f, or g.

Article 34
In addition to administrative sanctions as referred to in Article 33 paragraph (4), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 35
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 33 paragraph (4) and specific actions as referred to in Article 34 to the public.

CHAPTER IX
TRANSITIONAL PROVISIONS

Article 36
Parties that already have a business license as organizers of government debt securities trading outside the Stock Exchange from the Financial Services Authority:
a. may conduct activities as a PPA without obtaining a business license as a PPA; and b. are required to adjust operational requirements and internal controls as a PPA as referred to in this Financial Services Authority Regulation at the latest 2 (two) years from the effective date of this Financial Services Authority Regulation.

Article 37
Parties that have organized and provided or used Electronic Systems to match Securities Transactions over debt-type Securities and/or Sukuk among users continuously outside the Stock Exchange are required to obtain a license as a PPA, at the latest 2 (two) years from the effective date of this Financial Services Authority Regulation.

CHAPTER X
CLOSING PROVISIONS

Article 38
Upon the effective date of this Financial Services Authority Regulation, the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-02/PM/2004 concerning Organizers of Government Debt Securities Trading along with Regulation Number III.D.1 which is its appendix, is revoked and declared invalid.

Article 39
This Financial Services Authority Regulation takes effect from the date of its promulgation.

This copy is consistent with the original
Director of Law 1
Law Department signed
Yuliana

To ensure everyone knows, 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 19 February 2019
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Promulgated in Jakarta on 21 February 2019
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2019 NUMBER 33

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 8 /POJK.04/2019
CONCERNING
ALTERNATIVE MARKET ORGANIZERS

I. GENERAL

The growth of the capital market industry needs to be supported by adequate infrastructure. As one of the main infrastructures in trading, systems and/or facilities to match buy and sell offers between Parties with the aim of trading Securities among them becomes a crucial factor in increasing capital market liquidity.

To provide trading infrastructure and increase transparency in the trading of Government Securities, the Financial Services Authority has issued Regulation Number III.D.1, appendix of the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-02/PM/2004 concerning Organizers of Government Debt Securities Trading, which regulates requirements for Parties becoming organizers of government debt securities trading outside the Stock Exchange, as organizers of markets other than the Stock Exchange.

However, the scope of regulation in that provision is still limited to government debt securities, while from the side of debt securities market development needs, there are plans to expand the Securities that can be traded to include securities other than government debt securities. In addition, from the regulatory side, there is a need for more comprehensive regulatory improvements for a PPA by adjusting to existing regulations for Stock Exchanges, Securities Companies, and international standards such as the International Organization of Securities Commissions (IOSCO) as well as benchmarking with regulations in other countries.

Considering the above, it is necessary to improve the regulation of government debt and/or Sukuk market organizers by establishing a Financial Services Authority Regulation concerning Alternative Market Organizers, which is an improvement of Regulation Number III.D.1 concerning Organizers of Government Debt Securities Trading.

II. ARTICLE BY ARTICLE

Article 1
Clear enough.

Article 2
Clear enough.

Article 3
Clear enough.

Article 4
Examples of other services that can be provided by the PPA include derivative securities trading.

Article 5
Regular, fair, and efficient trading of debt-type Securities and Sukuk is trading organized based on clear rules and implemented consistently. Thus, the prices that occur reflect market mechanisms based on supply and demand forces. Efficient trading of debt-type Securities and Sukuk is reflected in fast transaction settlement with relatively low costs.

Article 6
Clear enough.

Article 7
Letter a
Examples of debt-type Securities and Sukuk that have been sold through public offerings include corporate bonds, corporate Sukuk, and asset-backed securities collective investment contracts. Letter b Clear enough. Letter c Clear enough.

Article 8
Paragraph (1)
The inter-dealer mechanism facilitates dealers to transact electronically and anonymously with other dealers.
The multi-dealer mechanism where the multi-dealer system provides customers with consolidated orders from 2 (two) or more dealers and provides customers with the ability to execute transactions based on multiple quotations for Securities. In cross-matching execution, users enter buy and sell orders that can match with automatic algorithms. Paragraph (2) Clear enough. Paragraph (3) What is meant by "Other Parties approved by the Financial Services Authority" includes individual customers, institutional customers, fiscal authorities, and monetary authorities in the implementation of their duties and functions. Paragraph (4) Clear enough.

Article 9
Clear enough.

Article 10
Clear enough.

Article 11
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
What is meant by "criminal offense" is:

criminal offenses in the Financial Sector, namely criminal offenses in the banking sector, criminal offenses in the capital market sector, and criminal offenses in the Non-Bank Financial Industry sector proven to have been committed within the last 20 (twenty) years before nomination;
special criminal offenses, namely criminal offenses other than those regulated in the Criminal Code with a prison sentence threat of 1 (one) year or more, at least: corruption; narcotics/psychotropics; smuggling; customs; excise; human trafficking; illegal arms trafficking; terrorism; counterfeiting money; in the tax sector; in the forestry sector; in the environmental sector; in the marine and fisheries sector proven to have been committed within the last 20 (twenty) years before nomination;
criminal offenses, namely criminal offenses contained in the Criminal Code with a prison sentence threat of 1 (one) year or more proven to have been committed within the last 10 (ten) years before nomination.
Assessment of the criteria in this number is done at a minimum based on information obtained by the Financial Services Authority or information known to the public, that the person concerned has been sentenced for committing criminal offenses in the financial sector or special criminal offenses within the last 20 (twenty) years before nomination or has been sentenced for committing criminal offenses within the last 10 (ten) years before nomination. What is meant by "before nomination" is calculated from the date the application for the name of prospective Board of Directors members or prospective Board of Commissioners members is received completely by the Financial Services Authority. Letter d Documents explaining requirements related to information on never committing disgraceful acts are proven by the Police Record Certificate (SKCK) where the period from the date of issuance until submitted to the Financial Services Authority is not more than 6 (six) months or according to the validity period given by the police if less than 6 (six) months or including police clearance from their country and the country where the person concerned resides if the person concerned is not domiciled in their country for shareholders who are foreign citizens. Letter e What is meant by "material violation" is violations that are not reporting-related and have been subject to administrative sanctions in the form of maximum fines, suspension of business activities, revocation of business licenses, cancellation of approvals, cancellation of registrations, and/or revocation of individual licenses. Letter f Clear enough. Letter g Clear enough. Paragraph (4) Clear enough.

Paragraph (5)
Clearly stated.

Article 12
Letter a
Number 1
Clearly stated.
Number 2
Clearly stated.
Number 3
Clearly stated.
Number 4
Clearly stated.
Number 5
Clearly stated.
Number 6
Evidence of financial capability is demonstrated, among other things, by annual tax notification letters for the last 2 (two) years for individual Indonesian citizens, bank statements, or proof of asset ownership. Number 7 Clearly stated. Letter b 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
Paragraph (1)
Letter a
The affiliation referred to as regulated in Law Number 8 of 1995 concerning Capital Markets is:
a. family relationships due to marriage and descent up to the second degree, both horizontally and vertically; b. relationships between a Party and employees, directors, or commissioners of said Party;
c. relationships between 2 (two) companies where there is one or more members of the Board of Directors or Board of Commissioners that are the same;
d. relationships between a company and a Party, whether directly or indirectly, controlling or being controlled by said company; e. relationships between 2 (two) companies controlled, whether directly or indirectly, by the same Party; or f. relationships between a company and major shareholders. Letter b Clearly stated. Letter c Clearly stated. Letter d Clearly stated. Letter e Clearly stated.

Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.

Article 20
Paragraph (1)
Assessment of competence and propriety is a process to evaluate the fulfillment of competence and propriety requirements for candidates for the Board of Directors or candidates for the Board of Commissioners of the PPA. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated.

Article 21
The term "legal process" refers to the investigation or judicial process, including appeals and cassation, in criminal cases covering:

financial crimes, namely crimes in the banking sector, capital markets sector, and non-bank financial industry sector;
special crimes, namely crimes other than those regulated in the Criminal Code with a penalty of imprisonment of 1 (one) year or more, at least: corruption; narcotics/psychotropics; smuggling; customs; excise; human trafficking; illegal arms trafficking; terrorism; counterfeiting money; in the taxation sector; in the forestry sector; in the environmental sector; in the maritime and fisheries sector; and
felony crimes, namely crimes recorded in the Criminal Code with a penalty of imprisonment of 1 (one) year or more.

Article 22
Clearly stated.

Article 23
Paragraph (1)
Letter a
Number 1
Measurement of system capacity in accordance with current conditions and anticipation of future needs can be done by establishing utilization thresholds, including hard disk, memory, processor, and bandwidth, based on needs, business planning, and common practices among market operators. Number 2 Clearly stated. Number 3 Testing of system capacity and security is conducted up to the stress test level to ensure the system's ability to process transactions accurately, on time, and efficiently. Such testing can be conducted independently or by other Parties and must be conducted at least once a year and documented. Number 4 Evaluation of system and computer operation center vulnerabilities is conducted with performance and technology weakness assessments by analyzing system issues. Number 5 Clearly stated. Number 6 Human resources with competence in the field of information technology hold diplomas, work experience, or expertise certificates in the field of information technology. Number 7 Clearly stated. Number 8 Systems that can help detect and prevent access by unauthorized Parties are implemented through the separation of access rights according to function (user privilege), have activity logs within the system covering time records, user names (user id), internet protocol addresses (IP address), and activities performed, and have functions for recording data changes in the system and active audit trail functions at all times so that reconstruction or tracing of every event that occurs can be performed. Number 9 Continuous supervision and crisis management procedures consist of consistent and periodic monitoring and evaluation mechanisms for system operations, and management of handling information technology operational issues from the incident level to the crisis level. Number 10 Using authentication encryption and non-repudiation techniques is demonstrated, such as obtaining digital certificates from authorized certificate issuing Parties, with the condition that the PPA uses authentication within the system using passwords and implements password policies including password complexity, maximum limit for inputting password errors, regular password replacement, and authority to reset passwords. Number 11 Protection of systems from disturbances such as computer viruses and/or malicious software/malware can be done by installing firewalls. Number 12 Professional information technology auditors conduct audits whenever there are material system changes that can affect the running system, both software and hardware. Number 13 Databases and applications that can be used to reconstruct Securities trading activities include, among others, databases regarding: placement, cancellation, modification, or execution of orders and/or instructions with time records and unique reference numbers, system login and logout activities, verification of fund and/or Security availability, such as setting and excluding transaction limits, management of passwords
related to customer and employee access; and changes to system parameters and master files. The servers for these databases and applications are located in Indonesia. Number 14 Securities trading data or information displayed covers data with integrity, both pre-trade and post-trade information. The PPA ensures the integrity of such data by taking necessary steps and monitoring for possible errors and making corrections as soon as possible. Pre-trade data display is conducted continuously during trading hours. Post-trade data display is conducted in real-time regarding Securities transactions that have occurred in the PPA system. Number 15 Clearly stated. Number 16 Clearly stated. Number 17 Securities trading surveillance systems equipped with trading surveillance parameters can support the PPA in taking action in the event of indications of unfair trading. Letter b PPA services to users include services to support Securities trading, services to handle complaints, and education and socialization to users. Services to prospective PPA service users include the process to become a PPA service user and basic information services regarding the services and infrastructure provided by the PPA. Letter c Clearly stated. Letter d Processes documented in standard operating procedures needed to support business activities include, among others, access to its trading system including restrictions, protection of Securities trading information performed by users, Securities trading performed by PPA employees for their own interests, handling system issues, execution of data and application backups, business continuity plan, and system development to remain up to date. Letter e Review is conducted to ensure that all provisions and standard operating procedures are fulfilled. Letter f Records of such data include user service data, order activity data such as withdrawal, cancellation, and transaction data. The term "Securities trading data" includes order information and Securities Transaction information. Order information includes the identity of the orderer, date and time (hour, minute, and second format) the order was received, order validity period, all instructions to modify or cancel orders. Letter g Clearly stated. Letter h Clearly stated. Letter i Clearly stated. Letter j Clearly stated. Paragraph (2) Clearly stated.

Article 24
Letter a
Number 1
In assessing prospective service users, the PPA must act fairly and non-discriminatorily.
Number 2
Clearly stated.
Number 3
Clearly stated.
Number 4
Clearly stated.
Number 5
Clearly stated.
Number 6
Clearly stated.
Number 7
Clearly stated.
Number 8
Clearly stated.
Number 9
Clearly stated.
Letter b
Clearly stated.
Letter c
Clearly stated.
Letter d
Clearly stated.

Article 25
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
Clearly stated.
Letter d
Clearly stated.
Letter e
Clearly stated.
Letter f
Clearly stated.
Letter g
Clearly stated.
Letter h
Clearly stated.
Letter i
Clearly stated.
Letter j
Clearly stated.
Letter k
Clearly stated.
Letter l
Clearly stated.
Letter m
Economic considerations include descriptions of the market conditions to be served.
Letter n
Clearly stated.
Letter o
Clearly stated.
Letter p
Clearly stated.

Article 26
Clearly stated.

Article 27
Clearly stated.

Article 28
Clearly stated.

Article 29
Clearly stated.

Article 30
Clearly stated.

Article 31
Paragraph (1)
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
Clearly stated.
Letter d
Clearly stated.
Letter e
Clearly stated.
Letter f
Clearly stated.
Letter g
Clearly stated.
Letter h
Special events that must be reported include, among others, trading system disruptions, trading surveillance, and so on.
Letter i
Clearly stated.
Letter j
Clearly stated.
Paragraph (2)
Clearly stated.

Article 32
Clearly stated.

Article 33
Clearly stated.

Article 34
Clearly stated.

Article 35
Clearly stated.

Article 36
Clearly stated.

Article 37
Clearly stated.

Article 38
Clearly stated.

Article 39
Clearly stated.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6315

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 8 /POJK.04/2019
CONCERNING
ALTERNATIVE MARKET OPERATOR

APPLICATION FOR BUSINESS LICENSE AS A PPA
Number : ........,.............. 20.....
Attachment :
Subject : Application for Business License as a PPA

To
The Executive Head of
Capital Market Supervisor
Financial Services Authority in Jakarta

Hereby we apply for a business license as a PPA.
As consideration material, we submit the following data:

Applicant Name : ...............................................................
Applicant Address : ...............................................................
(street name and number)
.................................................. -  (city and postal code)
PPA Name : ...............................................................
Taxpayer Identification Number (NPWP) : ...............................................................
Capital :
a. Authorized Capital : …………………………………………………… b. Paid-up Capital : ……………………………………………………
Company Address : ...............................................................
(street name and number)
.................................................. -  (city and postal code) For...
Telephone Number,
Telex, and Fax : ...............................................................
Contact Person : ...............................................................
(include letter of authorization)
Business Licenses
Already Held : ...............................................................

To complete this application, we attach the following documents:

detailed information regarding the applicant, name, address, telephone number,
and fax;
photocopy of the limited liability company establishment deed that has been certified
by the competent authority, along with the articles of association and/or the latest amendment to the articles of association of the limited liability company that has obtained approval or has issued a notice of receipt of amendment to the articles of association from the competent authority;
photocopy of Taxpayer Identification Number (NPWP);
list of names and members of the Board of Directors and Board of Commissioners,
including:
a. curriculum vitae signed by the concerned party; b. photocopy of the latest formal education diploma and expertise certificates or proof of experience in the capital markets sector;
c. photocopy of the Identity Card (KTP) or other valid identification;
d. latest color passport-sized photos measuring 4x6 cm with a red background, 2 (two) sheets; e. photocopy of Taxpayer Identification Number (NPWP); and f. Police Record Certificate;
list of names and data of shareholders, including:
a. photocopy of the establishment deed and/or amendment to the articles of association as follows:

for Indonesian legal entities, photocopy of the establishment deed that
has been certified by the competent authority, along with the latest amendment to the articles of association that has obtained approval from the competent authority or has issued a notice of receipt of amendment to the articles of association from the competent authority; or
for foreign legal entities, photocopy of the establishment deed that has
been certified along with the latest amendment to the articles of association that has obtained approval from the competent authority in the country of origin, if there is an amendment to the articles of association, and documents required according to the regulations of the country of origin if the legal entity in question is a state or government-owned legal entity; b. photocopy of Taxpayer Identification Number (NPWP) for Indonesian legal entities;
c. information regarding Parties controlling the legal entity, whether directly or
indirectly, including among others name and form of control; d. latest audited financial report; e. list of names and data of Board of Directors members, Board of Commissioners members, and/or management including:
curriculum vitae;
photocopy of Identity Card (KTP) or other valid identification; and
latest color passport-sized photos measuring 4x6 cm with a red background,
2 (two) sheets;

latest audited financial report audited by an accountant registered with the Financial
Services Authority;
photocopy of bank statements;
proof of lawful deposit of paid-up capital;
draft PPA regulations;
draft trading system implementation to be used and supporting facilities;
standard operating procedures for business activities;
list of PPA service users;
economic considerations underlying the establishment of the PPA;
projection of operational plans and PPA mission for the next 3 (three) years;
organizational structure with job descriptions; and
information on business premises and photos of the office room.

Thus, we submit this application and thank you for your attention.

The Applicant,
.............................................
(clear name and signature) stamp duty

QUESTIONNAIRE LIST
I. INSTRUCTIONS FOR ANSWERING QUESTIONS

All questions must be answered by candidates for the Board of Directors,
Board of Directors members, candidates for the Board of Commissioners, Board of Commissioners members, prospective shareholders, and shareholders.
Signed by each Board of Directors member, Board of Commissioners member,
candidate for the Board of Directors, candidate for the Board of Commissioners, and controllers or shareholders on stamped paper.
Place a checkmark  in the box in front of the word "Yes" if your answer is
"yes", or place a checkmark  in the box in front of the word "No" if your answer to the following questions is "no".
For every "yes" answer, the applicant must provide a detailed and clear answer containing at least:
a. the institution concerned; b. the case and date of the action taken;
c. the court or institution that took the action; and
d. the actions and sanctions imposed.

II. INTEGRITY OF BOARD OF DIRECTORS MEMBERS, BOARD OF
COMMISSIONERS MEMBERS, CANDIDATES FOR THE BOARD OF DIRECTORS, CANDIDATES FOR THE BOARD OF COMMISSIONERS, AND CONTROLLERS/SHAREHOLDERS

Definitions
Investment is an activity regarding Securities, banking, insurance, pension funds, cooperatives, other financial institutions including activities, whether direct or indirect, related to securities companies, investment advisors, banks or other companies operating in the financial sector, and/or other investment activities in the real sector, for example, housing or real estate business.

Answer the following questions:

In the last 20 (twenty) years, have you ever been convicted for:
a. crimes related to investment?
 yes  no b. or other crimes?
 yes  no
Has the court:
a. declared you bankrupt?
 yes  no b. in the last 20 (twenty) years, prohibited you from engaging in activities related to investment?
 yes  no
c. declared you guilty of being involved in legal violations (crimes) related to
investment and/or involved in legal violations of regulations in the financial services sector?
 yes  no d. frozen/stopped temporarily, restricted, or revoked licenses (or other permits similar to licenses) that you possess?
 yes  no e. declared that you caused a business related to investment, its business license or license to conduct business to be rejected, frozen, revoked, or restricted?  yes  no
Has the Financial Services Authority ever:
a. declared and/or found you making false, misleading, or dishonest statements, unfair or unethical, or negligent in providing information that should have been provided?  yes  no b. declared and/or found you involved in violations of regulations in the capital markets sector?  yes  no
c. declared you guilty of being involved in investment activities so that the
business license or other licenses similar to the business license owned by a company were frozen, restricted, or revoked/cancelled?
 yes  no d. rejected your application for licenses, approvals, or registration/registration certificates?
 yes  no e. imposed sanctions by freezing, restricting activities, or revoking/cancelling licenses, approvals, or registration/registration certificates that you possess, for example, registration certificates as capital market supporting professions such as accountants, legal consultants, appraisers, or notaries?  yes  no f. declared that your business license or license to conduct business related to investment was rejected, frozen, revoked, or restricted?  yes  no g. ordered to reject, temporarily stop, revoke your business license, or impose sanctions by restricting your activities?  yes  no
Have other competent authorities ever:
a. declared and/or found you making false, misleading, or dishonest statements, unfair, or unethical?
 yes  no b. declared and/or found you involved in violations of regulations concerning investment activities?
 yes  no
c. declared and/or found you causing a company related to investment whose
business license application was rejected or its business license (or other permits similar to business licenses) to be frozen/stopped temporarily, restricted, or revoked?  yes  no d. ordered to prohibit you from engaging in activities related to investment in the last 20 (twenty) years?  yes  no e. rejected your license application (other permits similar to licenses), or frozen/ stopped temporarily, restricted, or revoked licenses (other permits similar to licenses) that you possess to engage in investment activities?  yes  no f. rejected your license application (other permits similar to licenses), frozen/ stopped temporarily, restricted, or revoked licenses (other permits similar to licenses) that you possess to engage in activities other than investment activities, for example, registration certificates as capital market supporting professions such as accountants, legal consultants, appraisers, or notaries?  yes  no
Have Stock Exchanges, clearing and guarantee institutions, and depository and
clearing institutions ever:
a. declared and/or found you making false, misleading, or dishonest statements, unfair or unethical, or negligent in providing information that should have been provided?  yes  no b. declared and/or found you involved in violations of Stock Exchange Regulations?  yes  no
c. disciplined you by issuing or temporarily suspending the securities company
where you work from membership in a Stock Exchange resulting from your mistakes, by restricting or temporarily suspending the relationship between said securities company and other Stock Exchange members?  yes  no d. found you causing the business license or license to conduct business of a company related to investment to be frozen, revoked, or restricted?  yes  no
Has a foreign court ever declared that you were guilty due to criminal charges or
civil lawsuits in relation to investment?
 yes  no
Have courts of other countries, applicable regulations, or Stock Exchanges ever
ordered actions to be taken against you in relation to fraud?
 yes  no
Are you currently a party to a lawsuit in court?
 yes  no
Do you have commitments, specific ties, or conditional obligations to third parties
whose cases are being processed or have obtained court decisions?
 yes  no
Taking disciplinary action against you by issuing or freezing from membership by
preventing or freezing relationships with other members, or by restricting their activities?
 yes  no
Has an insurance company ever refused to pay you or cancelled your insurance?
 yes  no
Have you ever been a Board of Directors member of a securities company,
investment advisor, or controlling shareholder of a financial services institution declared bankrupt?
 yes  no

This copy is in accordance with the original
Legal Director 1
Legal Department signed
Yuliana
13. Do you individually or jointly own shares exceeding 5% (five percent) in an Issuer?
 yes  no
14. Have you ever been declared unqualified by the Financial Services Authority as a
shareholder, controlling shareholder, Board of Directors member, Board of Commissioners member, and executive officials of financial services institutions?  yes  no
.........., ......................20........
(place and date)
.............................................
(clear name and signature)

Note:
*) choose one

CHAIRMAN OF THE COMMISSIONER BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO stamp duty

Financial Services Authority Regulation Number 8/POJK.04/2019 Concerning Alternative Market Organizers

Lineage: In force