Financial Services Authority Regulation Number 9 of 2023 on the Use of Public Accountant and Public Accounting Firm Services in Financial Service Activities

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 9 OF 2023
CONCERNING
THE USE OF PUBLIC ACCOUNTANT AND PUBLIC ACCOUNTING FIRM SERVICES IN FINANCIAL SERVICE ACTIVITIES BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that parties using the services of public accountants and public accounting firms regulated and supervised by the Financial Services Authority need to prepare and present quality financial information as a reflection of good governance implementation through the performance of external audit functions by independent public accountants and public accounting firms; b. that there is a need to improve provisions in accordance with legislation and professional ethical codes regarding the restriction of audit services by public accountants and public accounting firms, as well as the simplification of administrative management of public accountants and public accounting firms through coordination with other parties;
c. that due to the development of activities of public accountants and public accounting firms, and to optimize the administrative management and supervision of the Financial Services Authority over public accountants and public accounting firms, it is necessary to replace the Financial Services Authority Regulation Number 13/POJK.03/2017 concerning the Use of Public Accountant and Public Accounting Firm Services in Financial Service Activities;
d. that based on the considerations referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning the Use of Public Accountant and Public Accounting Firm Services in Financial Service Activities;

Recalling:

1. Law Number 5 of 2011 concerning Public Accountants (State Gazette of the Republic of Indonesia Year 2011 Number 51, Supplement to the State Gazette of the Republic of Indonesia Number 5215);
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) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);

DECIDING:

To Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE USE OF PUBLIC ACCOUNTANT AND PUBLIC ACCOUNTING FIRM SERVICES IN FINANCIAL SERVICE ACTIVITIES.

CHAPTER I
GENERAL PROVISIONS

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

1. Party is the party carrying out activities in the banking, capital market, and/or non-bank financial industry sectors regulated and supervised by the Financial Services Authority, including financial service institutions and/or individual persons or legal entities carrying out activities in the financial service sector.
2. Banking is everything related to banks, encompassing institutions, business activities, as well as methods and processes in carrying out business activities conventionally or based on Sharia principles in accordance with laws concerning banking and laws concerning Sharia banking.
3. Capital Market is a part of the financial system related to activities:
   a. public offerings and securities transactions; b. investment management;
   c. issuers and public companies related to the securities they issue; and
   d. institutions and professions related to securities.
4. Non-Bank Financial Industry, hereinafter abbreviated as IKNB, is an industry consisting of institutions carrying out activities in the insurance sector, pension funds, financing institutions, and other financial service institutions, both those conducting business activities conventionally and those conducting all or part of their business based on Sharia principles.
5. Public Accountant, hereinafter abbreviated as PA, is a person who has obtained a license to provide services in accordance with the law concerning public accountants.
6. Public Accounting Firm, hereinafter abbreviated as PAF, is a business entity established in accordance with legislation and obtaining a business license in accordance with the law concerning public accountants.
7. Audit Committee is a committee formed by and responsible to the board of commissioners to assist in carrying out the duties and functions of the board of commissioners.
8. Public Accountant Professional Association is a national professional organization for PAs.
9. Partner is a partner in a PAF structured as a partnership.
10. Continuing Professional Education, hereinafter abbreviated as CPE, is continuing education and/or professional training for PAs aimed at maintaining competence.
11. Audit Period is the period covering the financial reporting period that is the object of audit, examination, or other assignments.
12. Professional Assignment Period is the assignment period to perform assurance work, including preparing reports to the Financial Services Authority.
13. Minister is the minister in charge of government affairs in the financial sector.

Article 2
(1) Parties are required to use PAs and PAFs that:
a. are registered with the Financial Services Authority; b. are recorded in the list of active PAs and PAFs with the Financial Services Authority; and
c. possess competence appropriate to the complexity of the Party's business.
(2) The obligation to use PAs and PAFs as referred to in paragraph (1) is implemented for reports that must be audited, examined, or other assignments by PAs based on financial service sector legislation or written instructions from the Financial Services Authority. (3) The Financial Services Authority has the authority to issue written instructions to Parties to conduct audits or re-examinations of reports and other assignments as referred to in paragraph (2). (4) Parties violating the provisions as referred to in paragraph (1):
a. are deemed not to have fulfilled their obligations regarding reports that must be audited, examined, or other assignments by PAs as referred to in paragraph (2); and b. are subject to sanctions in accordance with financial service sector legislation.

CHAPTER II
ROLE OF THE AUDIT COMMITTEE

Article 3
(1) The General Meeting of Shareholders of the Party must decide on the appointment of PAs and/or PAFs that will provide audit services for annual historical financial information, considering proposals from the board of commissioners, supervisory board, or parties performing supervisory functions similar to those of the board of commissioners. (2) In the event that the General Meeting of Shareholders cannot decide on the appointment of PAs and/or PAFs that will provide audit services for annual historical financial information as referred to in paragraph (1), the General Meeting of Shareholders delegates the authority to appoint PAs and/or PAFs to the board of commissioners, supervisory board, or parties performing supervisory functions similar to those of the board of commissioners, accompanied by an explanation regarding:
a. the reasons for the delegation of authority; and b. criteria or limitations for PAs and/or PAFs that can be appointed.
(3) In the event that the Party does not have a General Meeting of Shareholders organ, the functions and authorities of the General Meeting of Shareholders as referred to in paragraph (1) are carried out by the highest organ equivalent to the General Meeting of Shareholders in accordance with legislation. (4) Proposals for the appointment of PAs and/or PAFs submitted by the board of commissioners, supervisory board, or parties performing supervisory functions similar to those of the board of commissioners as referred to in paragraph (1) must take into account the recommendations of the Audit Committee. (5) In formulating recommendations as referred to in paragraph (4), the Audit Committee must consider:
a. the independence of the PA, PAF, and persons within the PAF; b. the scope of the audit;
c. audit service fees;
d. the expertise and experience of the PA, PAF, and audit team from the PAF; e. the methodology, techniques, and audit tools used by the PAF; f. the benefits of a new perspective that will be obtained through the replacement of the PA, PAF, and audit team from the PAF; g. the potential risk of using audit services from the same PAF consecutively for a sufficiently long period; and h. the results of evaluations regarding the implementation of audit services for annual historical financial information by PAs and PAFs in previous periods, if any. (6) The Financial Services Authority has the authority to issue written instructions to Parties to replace PAs and/or PAFs that have been appointed by the Party as referred to in paragraph (1).

Article 4
(1) The Audit Committee evaluates the implementation of audit services for annual historical financial information by PAs and/or PAFs.
(2) The evaluation of the implementation of audit services for annual historical financial information by PAs and/or PAFs as referred to in paragraph (1) is conducted at least through:
a. the conformity of audit implementation by PAs and/or PAFs with applicable audit standards; b. the adequacy of fieldwork time;
c. the study of the scope of services provided and the adequacy of sampling; and
d. improvement recommendations provided by PAs and/or PAFs.

Article 5
(1) In the event that PAs and/or PAFs decided by the General Meeting of Shareholders as referred to in Article 3 paragraph (1) cannot complete the provision of audit services for annual historical financial information during the Professional Assignment Period, the appointment of replacement PAs and/or PAFs is conducted by the board of commissioners, supervisory board, or parties performing supervisory functions similar to those of the board of commissioners, provided that it is mandated by the General Meeting of Shareholders while considering the recommendations of the Audit Committee. (2) In the event that the Party is not required to have an Audit Committee, the duties and responsibilities of the Audit Committee as referred to in Article 3 and Article 4 are carried out by the board of commissioners, supervisory board, or parties performing supervisory functions similar to those of the board of commissioners.

Article 6
(1) Parties violating the provisions as referred to in Article 3 paragraph (1), paragraph (4), and/or paragraph (5) are subject to administrative sanctions in the form of written reprimands or written warnings. (2) Administrative sanctions as referred to in paragraph (1) may be preceded by written instructions.

CHAPTER III
RESTRICTIONS ON THE USE OF AUDIT SERVICES

Article 7
(1) Parties in the form of commercial banks, issuers, and public companies are required to restrict the use of audit services for annual historical financial information from the same PA for a cumulative period of 7 (seven) years. (2) Parties as referred to in paragraph (1) may only reuse audit services for annual historical financial information from the same PA after passing a cooling-off period according to the type of PA's role in the engagement:
a. if the PA acts as the Engagement Partner, the cooling-off period is 5 (five) consecutive reporting years; b. if the PA acts as the Engagement Quality Control Reviewer, the cooling-off period is 3 (three) consecutive reporting years; and
c. for other Engagement Audit Partners, the cooling-off period is 2 (two) consecutive reporting years.
(3) The cumulative calculation as referred to in paragraph (1) is accumulated since the fiscal year 2017.
(4) In addition to considering paragraphs (1), (2), and (3), Parties as referred to in paragraph (1) ensure that PAs have met the restrictions on the use of audit services and cooling-off periods regulated in the ethical code of the Public Accountant Professional Association and legislation concerning public accountant practice.

Article 8
(1) Parties other than those referred to in Article 7 paragraph (1) are required to restrict the use of audit services for annual historical financial information from the same PA for a maximum audit period of 5 (five) consecutive reporting years. (2) The restriction on the use of audit services as referred to in paragraph (1) also applies to PAs who are associated parties and PAF personnel with positions 1 (one) level below the PA involved in providing audit services. (3) Parties as referred to in paragraph (1) may only reuse audit services for annual historical financial information from the same PA as referred to in paragraph (1) after passing a cooling-off period of 2 (two) consecutive reporting years.

Article 9
(1) Parties request PAFs to conduct and provide self-assessment results regarding the fulfillment of restrictions on the use of audit services and cooling-off periods as referred to in Article 7 and Article 8. (2) The self-assessment results provided by PAFs as referred to in paragraph (1) for Parties:
a. commercial banks, issuers, and public companies must be accompanied by information on the assignment periods served by PAs acting as Engagement Partners, PAs acting as Engagement Quality Control Reviewers, and other Engagement Audit Partners; and b. other than commercial banks, issuers, and public companies must be accompanied by information on the assignment periods served by PAs and/or associated parties and PAF personnel with positions 1 (one) level below the PA involved in providing audit services, along with considerations causing the PAF to conclude that the PAs and/or PAF personnel in question meet the restrictions on the use of audit services and cooling-off periods. (3) The calculation of restrictions on the use of audit services for annual historical financial information from the same PA by Parties as referred to in Article 7 paragraph (1) and Article 8 paragraph (1) is applied since the PA provided audit services to the Parties, covering:
a. the period of service provision before the Party obtained permission or was registered as an entity regulated and supervised by the Financial Services Authority; and b. the period of service provision by the PA before registration with the Financial Services Authority. (4) Parties violating the provisions as referred to in:
a. Article 7 paragraph (1), Article 8 paragraph (1), and/or paragraph (2); or b. Article 7 paragraph (2) and/or Article 8 paragraph (3), are deemed not to have fulfilled their obligations regarding reports and assignments as referred to in Article 2 paragraph (2) and are subject to sanctions in accordance with financial service sector legislation.

CHAPTER IV
SCOPE OF AUDIT

Article 10
(1) The implementation of audits on annual historical financial information by PAs and/or PAFs is based on a work agreement between the Party and the PAF.
(2) For Parties in the form of banks, investment managers, insurance companies, reinsurance companies, pension funds, and financing institutions, the work agreement as referred to in paragraph (1) must include specific audit scope provisions. (3) Provisions regarding specific audit scope as referred to in paragraph (2) are determined by the Financial Services Authority.

Article 11
Parties as referred to in Article 10 paragraph (2) who violate the provisions as referred to in Article 10 paragraph (2) are subject to administrative sanctions in the form of written reprimands or written warnings.

CHAPTER V
SUBMISSION OF REPORTS FROM PARTIES TO THE FINANCIAL SERVICES AUTHORITY

Article 12
(1) Parties are required to submit periodic reports annually to the Financial Services Authority regarding:
a. the appointment of PAs and PAFs for audits of annual historical financial information by attaching documents:

1. the appointment of PAs and PAFs accompanied by the Audit Committee's recommendation and considerations used in providing the recommendation as referred to in Article 3 paragraph (4); and
2. the self-assessment results received from the PAF as referred to in Article 9 paragraph (1),
   no later than 10 (ten) working days after the work agreement between the Party and the PAF is signed; and b. the realization of the use of PA and PAF services, no later than 6 (six) months after the end of the fiscal year, electronically through the Financial Services Authority's reporting system. (2) The submission of reports as referred to in paragraph (1) is done completely and correctly. (3) Parties are required to prepare and submit corrections for information errors in reports as referred to in paragraph (1) electronically through the Financial Services Authority's reporting system. (4) In the event that the Financial Services Authority's reporting system cannot be used for the electronic submission of reports and report corrections as referred to in paragraph (1) and paragraph (3), Parties submit the aforementioned reports offline to the Financial Services Authority. (5) If the deadline for report submission as referred to in paragraph (1) letter b falls on a Saturday, Sunday, and/or other holidays, the deadline for report submission is on the next working day. (6) Further provisions regarding the format, filling guidelines, and submission applications for reports as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 13
(1) In the event that the Financial Services Authority experiences technical disruptions at the report submission deadline so that Parties cannot submit reports, the Financial Services Authority notifies Parties of the technical disruption in writing and delivers it:
a. directly to the Party; b. through the Financial Services Authority's reporting system;
c. through electronic media; and/or
d. other media.
(2) Parties submit reports no later than 2 (two) working days after the Financial Services Authority notifies that the technical disruption at the Financial Services Authority as referred to in paragraph (1) has been resolved. (3) Parties experiencing force majeure conditions so that they cannot submit reports until the submission deadline notify the Financial Services Authority in writing to obtain a postponement of the report submission deadline. (4) The submission of notification letters as referred to in paragraph (3) and reports as referred to in Article 12 paragraph (4) is done offline to the supervision units at the Financial Services Authority according to the type of financial service sector institution, for:
a. banks, with the address:

1. the Relevant Bank Supervision Department for banks with headquarters or branches of banks located abroad within the Special Capital Region of Jakarta; or
2. the Regional Office of the Financial Services Authority or the Local Office of the Financial Services Authority according to the area where the bank's headquarters is located;
   b. Parties in the Capital Market sector, addressed to the Relevant Capital Market Supervision Department; and
   c. Parties in the IKNB sector, addressed to the Relevant IKNB Supervision Department.

Article 14
(1) Parties who are late in submitting reports as referred to in Article 12 paragraph (1) are subject to administrative sanctions in the form of fines of Rp100,000.00 (one hundred thousand rupiah) per working day and a maximum of Rp5,000,000.00 (five million rupiah) per report. (2) Parties violating the provisions as referred to in Article 12 paragraph (3) are subject to administrative sanctions in the form of written reprimands or written warnings accompanied by a deadline for correction. (3) Administrative sanctions as referred to in paragraph (2) may be preceded by written instructions. (4) The imposition of administrative sanctions as referred to in paragraph (1) does not eliminate the obligation to submit reports for Parties who have not submitted reports as referred to in Article 12 paragraph (1) or report corrections as referred to in Article 12 paragraph (3).

Article 15
The Financial Services Authority may announce the imposition of administrative sanctions against Parties as well as PAs and PAFs to the public.

CHAPTER VI
ADMINISTRATIVE MANAGEMENT OF PAs AND PAFs

Article 16
(1) PAs and PAFs providing services to Parties are PAs and PAFs registered with the Financial Services Authority.
(2) Applications for registration of PAs and/or PAFs are submitted to the Financial Services Authority by meeting minimal requirements:
a. having a valid and active license from the Minister; b. never having been subject to administrative sanctions in the form of cancellation of registration certificates from the Financial Services Authority or previous authorities;
c. not being listed in the list of non-performing loans and/or financing; and
d. not being included as parties prohibited from becoming principal parties in accordance with Financial Services Authority Regulations concerning re-evaluation for principal parties of financial service institutions. (3) For PAs, in addition to meeting the requirements as referred to in paragraph (2), additional requirements are:
a. not holding concurrent positions; b. holding the position of PA Partner in a partnership PAF or leader of a sole proprietorship PAF registered with the Financial Services Authority; and
c. possessing competence and knowledge in the financial service sector and industries using PA services.
(4) For PAFs, in addition to meeting the requirements as referred to in paragraph (2), additional requirements are:
a. having at least 1 (one) PA Partner holding the position of PAF leader who is registered and active with the Financial Services Authority; and b. for PAFs that have cooperation with foreign public accounting firms or foreign audit organizations, the cooperation must at least cover obligations for quality review and training from the foreign public accounting firm or foreign audit organization to the PAF. (5) If necessary, the Financial Services Authority may request additional registration requirements for PAs and/or PAFs. (6) PAFs can be categorized as the same PAF with the provisions:
a. the PAF name has not changed and there has been no change in PA composition of more than 50% (fifty percent); or b. there is a founding or name change of the PAF, but 50% (fifty percent) or more of the PA composition comes from the previous PAF.

Article 17
(1) While registered with the Financial Services Authority, PAs are required to continue to meet the requirements:
a. never having been sentenced for proven criminal acts in the financial sector; b. not being included as parties prohibited from becoming principal parties in accordance with Financial Services Authority Regulations concerning re-evaluation for principal parties of financial service institutions;
c. not being listed in the list of non-performing loans and/or financing;
d. not holding concurrent positions; and e. holding the position of PA Partner in a partnership PAF or leader of a sole proprietorship PAF registered with the Financial Services Authority.
(2) While registered with the Financial Services Authority, PAFs are required to continue to meet the requirements:
a. not being listed in the list of non-performing loans and/or financing; b. having at least 1 (one) PA Partner holding the position of PAF leader who is registered and active with the Financial Services Authority; and
c. not currently engaging in cooperation with foreign public accounting firms or foreign audit organizations that are undergoing sanctions in the form of restrictions on cooperation with PAFs from the Financial Services Authority.
(3) PAs and/or PAFs violating the provisions as referred to in paragraph (1) letters c, d, e and/or paragraph (2) are subject to administrative sanctions in the form of written reprimands or written warnings accompanied by a deadline for correction. (4) In the event that PAs and/or PAFs have been subject to administrative sanctions in the form of written reprimands or written warnings as referred to in paragraph (3) and continue to violate the provisions as referred to in paragraph (1) letters c, d, e, and/or paragraph (2) after the set deadline, PAs and/or PAFs are subject to administrative sanctions in the form of suspension of registration for a maximum of 1 (one) year with the Financial Services Authority. (5) PAs violating the provisions as referred to in paragraph (1) letters a and/or b are subject to administrative sanctions in the form of cancellation of registration with the Financial Services Authority. (6) PAs and/or PAFs that continue to violate the provisions as referred to in paragraph (1) letters c, d,

letter e, and/or paragraph (2) after the period of registration suspension as referred to in paragraph (4) ends, shall be subject to administrative sanctions in the form of cancellation of registration with the Otoritas Jasa Keuangan.

Article 18
(1) The application for AP registration submitted to the Otoritas Jasa Keuangan as referred to in Article 16 paragraph (2) and paragraph (3) must be accompanied by scanned documents at a minimum:
a. a still valid license from the Minister; b. the latest curriculum vitae signed on sufficient stamp duty;
c. Identity Card;
d. the latest color passport photo with a size of 4x6 cm; e. Taxpayer Identification Number (NPWP); f. certificate of professional education program as referred to in Article 16 paragraph (3) letter c obtained within the last 2 (two) years; g. cooperation agreement notarized regarding the AP as a Partner in a partnership KAP or license as a sole proprietorship KAP registered with the Otoritas Jasa Keuangan; and h. a statement letter signed on sufficient stamp duty stating that the AP:

1. has never been subject to administrative sanctions in the form of cancellation of registration certificate from the Otoritas Jasa Keuangan or previous authorities;
2. is not listed in the list of non-performing loans and/or financing;
3. is not included as a party prohibited from becoming a main party in accordance with the Otoritas Jasa Keuangan Regulation regarding re-evaluation of main parties of financial service institutions; and
4. does not hold multiple positions as referred to in Article 16 paragraph (3) letter a.

(2) The application for KAP registration submitted to the Otoritas Jasa Keuangan as referred to in Article 16 paragraph (2) and paragraph (4), must be accompanied by scanned documents at a minimum:
a. a still valid business license from the Minister; b. the deed of establishment of the KAP together with the latest amendments;
c. Taxpayer Identification Number (NPWP) of the business entity;
d. approval letter from the Minister regarding the inclusion of the name of a foreign public accountant office or foreign audit organization, if the KAP cooperates with a foreign public accountant office or foreign audit organization; e. cooperation agreement between the KAP and the foreign public accountant office or foreign audit organization, for KAPs that cooperate with foreign public accountant offices or foreign audit organizations, which at a minimum covers the obligation for quality review and training from the foreign public accountant office or foreign audit organization to the KAP; and f. a statement letter signed on sufficient stamp duty by the leader of the KAP, stating that:

1. it has never been subject to administrative sanctions in the form of cancellation of registration certificate from the Otoritas Jasa Keuangan or previous authorities;
2. it is not listed in the list of non-performing loans and/or financing; and
3. it is not currently establishing cooperation with a foreign public accountant office or foreign audit organization that is undergoing sanctions in the form of restriction of cooperation with KAPs from the Otoritas Jasa Keuangan.

Article 19
(1) In the event that the application documents for AP and/or KAP registration are declared not to meet the requirements as referred to in Article 18, the AP and/or KAP must submit the fulfillment of document requirements within a maximum of 45 (forty-five) days from the date of notification from the Otoritas Jasa Keuangan. (2) In the event that the AP and/or KAP does not fulfill the document requirements as referred to in paragraph (1), the AP and/or KAP is deemed to have cancelled the application for AP and/or KAP registration to the Otoritas Jasa Keuangan as referred to in Article 16. (3) In the event that the AP and/or KAP submits a new application for registration to the Otoritas Jasa Keuangan, the AP and/or KAP must submit the application for registration as referred to in Article 16 again, accompanied by the document requirements as referred to in Article 18.

Article 20
(1) In the event that the application for AP and/or KAP registration as referred to in Article 18 has been declared complete, the Otoritas Jasa Keuangan notifies the AP and/or KAP within a maximum of 20 (twenty) working days, that:
a. the registration application is approved; or b. the registration application is rejected accompanied by the reasons for rejection.
(2) AP and/or KAP whose registration applications are approved by the Otoritas Jasa Keuangan as referred to in paragraph (1) letter a are issued a registration certificate and are included in the list of APs and KAPs at the Otoritas Jasa Keuangan.

Article 21
(1) APs and KAPs registered with the Otoritas Jasa Keuangan are obliged to:
a. maintain the confidentiality of data and information obtained in providing services to the Party; b. undergo examinations conducted by the Otoritas Jasa Keuangan regarding compliance with audit work and the application of quality control over service activities provided by APs and/or KAPs to the Party;
c. apply professional standards for public accountants, quality control standards, and professional code of ethics in the implementation of service provision, insofar as otherwise regulated in financial service sector legislation;
d. conduct audits (assurance) of the conformity of historical financial information reports with financial accounting standards, insofar as otherwise regulated in financial service sector legislation; and e. consider the conformity of transactions conducted by the Party with legislation in providing audit services on annual historical financial information. (2) APs are obliged to participate in Continuing Professional Education (PPL) organized by institutions recognized by the Otoritas Jasa Keuangan. (3) The obligation of APs to participate in PPL as referred to in paragraph (2):
a. is at least in accordance with the number of continuing professional education credit units fulfilled each year as determined by the Otoritas Jasa Keuangan; and b. takes effect for the following year since the AP obtained the registration certificate from the Otoritas Jasa Keuangan. (4) APs who are affiliated parties and KAP personnel with a position 1 (one) level below the AP involved in providing audit services are obliged to apply professional standards for public accountants, quality control standards, and professional code of ethics in the implementation of service provision, insofar as otherwise regulated in financial service sector legislation. (5) Foreign public accountant offices or foreign audit organizations are obliged to carry out quality reviews and training as stated in the cooperation agreement with the KAP as referred to in Article 16 paragraph (4) letter b.

Article 22
(1) When submitting the first application for registration to the Otoritas Jasa Keuangan, APs may choose the scope of service provision in 1 (one) or more financial service sectors regulated and supervised by the Otoritas Jasa Keuangan. (2) The addition of the scope of service provision in financial service sectors other than those already registered with the Otoritas Jasa Keuangan is done by meeting special requirements. (3) The special requirements as referred to in paragraph (2) that must be possessed by APs are competence and knowledge in the financial service sector in accordance with the chosen financial service sectors. (4) APs may reduce the scope of service provision in 1 (one) or more financial service sectors by submitting an application for approval to the Otoritas Jasa Keuangan.

Article 23
(1) For APs who were already registered with the Otoritas Jasa Keuangan in the banking sector before the implementation of this Otoritas Jasa Keuangan Regulation and do not yet have a certificate of knowledge of Islamic accounting, are obliged to attend Islamic accounting training organized by the Public Accountant Professional Association at the latest by December 31, 2023. (2) APs who violate the provisions as referred to in paragraph (1) shall be subject to administrative sanctions in the form of a written reprimand or written warning accompanied by a deadline for fulfillment. (3) In the event that APs have been subject to administrative sanctions as referred to in paragraph (2) and continue to violate the provisions as referred to in paragraph (1) after the set deadline, APs shall be subject to administrative sanctions in the form of suspension of registration for a maximum of 1 (one) year at the Otoritas Jasa Keuangan.

Article 24
(1) APs who violate the provisions as referred to in Article 21 paragraph (1) letter a, letter b, letter c, letter d, and/or letter e, shall be subject to administrative sanctions in the form of suspension of registration for a maximum of 1 (one) year at the Otoritas Jasa Keuangan and/or administrative sanctions in the form of a fine of up to IDR 5,000,000,000.00 (five billion rupiah). (2) KAPs who violate the provisions as referred to in Article 21 paragraph (1) letter a, letter b, letter c, letter d, and/or letter e, shall be subject to administrative sanctions in the form of suspension of registration for a maximum of 1 (one) year at the Otoritas Jasa Keuangan and/or administrative sanctions in the form of a fine of up to IDR 25,000,000,000.00 (twenty-five billion rupiah). (3) APs who violate the provisions as referred to in Article 21 paragraph (2), shall be subject to administrative sanctions in the form of a fine of IDR 250,000.00 (two hundred fifty thousand rupiah) per continuing professional education credit unit not attended. (4) APs who are affiliated parties and KAP personnel with a position 1 (one) level below the AP involved in providing audit services who are registered with the Otoritas Jasa Keuangan and violate the provisions as referred to in Article 21 paragraph (4), shall be subject to administrative sanctions in the form of suspension of registration for a maximum of 1 (one) year or cancellation of registration at the Otoritas Jasa Keuangan and/or administrative sanctions in the form of a fine of up to IDR 5,000,000,000.00 (five billion rupiah). (5) APs who are affiliated parties and KAP personnel with a position 1 (one) level below the AP involved in providing audit services who are not registered with the Otoritas Jasa Keuangan and violate the provisions as referred to in Article 21 paragraph (4) are included in the Otoritas Jasa Keuangan's track record notes.

Article 25
(1) For KAPs who were already registered with the Otoritas Jasa Keuangan before the implementation of this Otoritas Jasa Keuangan Regulation and have cooperation with foreign public accountant offices or foreign audit organizations, remain obliged to submit the cooperation agreement with foreign public accountant offices or foreign audit organizations which at a minimum covers the obligation for quality review and training from the foreign public accountant office or foreign audit organization to the KAP as referred to in Article 18 paragraph (2) letter e at the latest by December 31, 2023. (2) KAPs who violate the provisions as referred to in paragraph (1) shall be subject to administrative sanctions in the form of a written reprimand or written warning accompanied by a deadline for fulfillment. (3) In the event that KAPs have been subject to administrative sanctions as referred to in paragraph (2) and continue to violate the provisions as referred to in paragraph (1), KAPs shall be subject to administrative sanctions in the form of suspension of registration for a maximum of 1 (one) year at the Otoritas Jasa Keuangan.

CHAPTER VII
PUBLICATION OF THE LIST OF APs AND KAPs AT THE OTORITAS JASA KEUANGAN

Article 26
(1) The list of APs and KAPs at the Otoritas Jasa Keuangan as referred to in Article 20 paragraph (2) is published on the Otoritas Jasa Keuangan website.
(2) The list of APs and KAPs as referred to in paragraph (1) includes:
a. active APs and KAPs; and b. temporarily inactive APs and KAPs; and
c. permanently inactive APs and KAPs.

Article 27
(1) The list of active APs and KAPs as referred to in Article 26 paragraph (2) letter a is for applications for AP and/or KAP registration that have been approved by the Otoritas Jasa Keuangan with a registration certificate issued and the registration certificate is still valid. (2) In the event that a KAP recorded in the list of active APs and KAPs does not have a KAP leader due to certain conditions, the KAP is given a time of at most 6 (six) months to fulfill the KAP leader position since the occurrence of the certain condition.

Article 28
(1) APs included in the list of temporarily inactive APs and KAPs as referred to in Article 26 paragraph (2) letter b with the conditions:
a. are currently undergoing suspension of service provision for a temporary period based on approval from the Minister; b. are currently subject to administrative sanctions in the form of suspension of registration from the Otoritas Jasa Keuangan or suspension of AP license from the Minister;
c. are Partners of a KAP that is currently subject to administrative sanctions in the form of suspension of registration from the Otoritas Jasa Keuangan or suspension of KAP business license from the Minister; or
d. are no longer Partners of a KAP registered with the Otoritas Jasa Keuangan.
(2) In the event that an AP is subject to service restriction sanctions to a certain type of entity from the Minister, the AP is declared to be in the list of temporarily inactive APs and KAPs as referred to in Article 26 paragraph (2) letter b in the said sector. (3) KAPs included in the list of temporarily inactive APs and KAPs as referred to in Article 26 paragraph (2) letter b with the conditions:
a. the KAP receives administrative sanctions in the form of suspension of registration from the Otoritas Jasa Keuangan; b. the KAP leader is declared to be in the list of temporarily inactive APs and KAPs as referred to in paragraph (1);
c. the leader of a partnership KAP with more than 1 (one) registered Partner is declared to be in the list of permanently inactive APs and KAPs;
d. the KAP business license is suspended by the Minister; or e. other reasons.
(4) For APs and/or KAPs included in the list of temporarily inactive APs and KAPs as referred to in Article 26 paragraph (2) letter b:
a. all registration certificates issued in the name of the AP and/or KAP at the Otoritas Jasa Keuangan are declared temporarily invalid, except if they meet the conditions as referred to in paragraph (2); b. APs and/or KAPs cannot provide services to the Party; and
c. APs may postpone the fulfillment of PPL each year as required in Article 21 paragraph (2).

Article 29
(1) APs and/or KAPs included in the list of permanently inactive APs and KAPs as referred to in Article 26 paragraph (2) letter c, with the conditions:
a. APs and/or KAPs are subject to administrative sanctions by the Otoritas Jasa Keuangan resulting in the cancellation of the registration certificate; b. APs and/or KAPs resign as APs and KAPs registered with the Otoritas Jasa Keuangan; or
c. other reasons.
(2) APs and/or KAPs recorded in the list of permanently inactive APs and KAPs as referred to in paragraph (1), all registration certificates issued in the name of the AP and/or KAP at the Otoritas Jasa Keuangan are declared void. (3) KAPs that only have 1 (one) registered AP at the Otoritas Jasa Keuangan and the said AP is subject to cancellation of the registration certificate, the KAP is recorded in the list of permanently inactive APs and KAPs as referred to in paragraph (1).

Article 30
(1) In the event that APs and/or KAPs recorded in the list of temporarily inactive APs and KAPs intend to become active again and be recorded in the list of active APs and KAPs at the Otoritas Jasa Keuangan, the respective APs and/or KAPs submit an application for reactivation to the Otoritas Jasa Keuangan. (2) The application for reactivation for APs as referred to in paragraph (1) must be accompanied by proof of participation in PPL in accordance with the number of continuing professional education credit units that must be fulfilled each year as referred to in Article 21 paragraph (2) by attending PPL:
a. every year during the inactive period; or b. cumulatively during the last 2 (two) years, before reactivation and being recorded in the list of active APs and KAPs at the Otoritas Jasa Keuangan. (3) APs and/or KAPs are deemed to have resigned as APs and KAPs registered with the Otoritas Jasa Keuangan, when:
a. APs and/or KAPs do not submit an application for reactivation as referred to in paragraph (1); or b. the application for reactivation by APs does not meet the requirements as referred to in paragraph (2), within a maximum period of 1 (one) year after the period of temporary suspension of service provision ends. (4) In the event that APs and/or KAPs are deemed to have resigned as referred to in paragraph (3), the Otoritas Jasa Keuangan:
a. issues a decision letter cancelling all registration certificates issued in the name of the AP and/or KAP; and b. records the APs and/or KAPs in the list of permanently inactive APs and KAPs at the Otoritas Jasa Keuangan. (5) Approval of the application for reactivation of APs and/or KAPs is issued within a period of 20 (twenty) working days since the application accompanied by documents as referred to in paragraph (1) and paragraph (2) is received completely by the Otoritas Jasa Keuangan. (6) If necessary, the Otoritas Jasa Keuangan may request additional requirements for the reactivation of APs and/or KAPs.

CHAPTER VIII
RESIGNATION OF APs AND KAPs

Article 31
(1) APs and/or KAPs may submit an application for resignation as APs and KAPs registered with the Otoritas Jasa Keuangan, accompanied by the reasons for resignation of the APs and/or KAPs and supporting documents at a minimum:
a. a personal statement letter from the KAP for APs who are Partners of the KAP; and b. a statement letter that the APs and/or KAPs are not currently providing services to the Party, which is submitted at the latest 2 (two) months before the planned date of resignation. (2) In the event that the application for resignation as APs and KAPs as referred to in paragraph (1) has been declared complete, the Otoritas Jasa Keuangan notifies the APs and/or KAPs at the latest within 20 (twenty) working days, that:
a. the resignation application is approved; or b. the resignation application is rejected accompanied by the reasons for rejection.
(3) APs and/or KAPs whose resignation applications are approved by the Otoritas Jasa Keuangan:
a. the registration certificate issued in the name of the AP and/or KAP is cancelled; and b. APs and/or KAPs are recorded in the list of permanently inactive APs and KAPs at the Otoritas Jasa Keuangan. (4) Resignation as referred to in paragraph (1) does not include cases where the resignation of APs and/or KAPs is approved by the Minister.

CHAPTER IX
INDEPENDENCE OF APs AND KAPs TOWARDS THE PARTY

Article 32
(1) APs, KAPs, and persons within the KAP in providing services to the Party are obliged to meet independence conditions during the Audit Period and the Professional Assignment Period.
(2) The independence conditions as referred to in paragraph (1) are stated in a statement letter and submitted by the KAP to the Party, before the Professional Assignment Period begins.
(3) In forming the audit team and parties who participate directly in providing audit services on annual historical financial information, the KAP refers to the professional code of ethics for APs insofar as otherwise regulated in legislation. (4) Further provisions regarding independence conditions as referred to in paragraph (1) are determined by the Otoritas Jasa Keuangan.

Article 33
APs and/or KAPs who violate the provisions as referred to in Article 32 paragraph (1), shall be subject to administrative sanctions in the form of suspension of registration for a maximum of 1 (one) year at the Otoritas Jasa Keuangan.

CHAPTER X
COMMUNICATION BETWEEN APs AND KAPs AND THE OTORITAS JASA KEUANGAN

Article 34
(1) For the preparation and implementation of audits on annual historical financial information for financial service institutions, APs and/or KAPs are obliged to communicate with the Otoritas Jasa Keuangan. (2) In communication with the Otoritas Jasa Keuangan as referred to in paragraph (1):
a. APs and/or KAPs may request information from the Otoritas Jasa Keuangan regarding the audited Party; and/or b. the Otoritas Jasa Keuangan may inform matters that require attention from APs and/or KAPs for the preparation and implementation of audits. (3) APs and KAPs are obliged to submit information requested by the Otoritas Jasa Keuangan even if the cooperation agreement as referred to in Article 10 paragraph (1) has ended.

Article 35
APs and/or KAPs who violate the provisions as referred to in Article 34 paragraph (1) and/or paragraph (3) shall be subject to administrative sanctions in the form of a written reprimand or written warning.

CHAPTER XI
SUBMISSION OF REPORTS FROM APs AND KAPs TO THE OTORITAS JASA KEUANGAN

Article 36
(1) APs and/or KAPs recorded in the list of active APs and KAPs at the Otoritas Jasa Keuangan submit:
a. periodic annual reports; and b. incidental reports, to the Otoritas Jasa Keuangan.
(2) The submission of reports as referred to in paragraph (1) is done completely and correctly.
(3) The periodic annual report as referred to in paragraph (1) letter a is a report on the service activities of the KAP provided to the Party.
(4) The incidental report as referred to in paragraph (1) letter b consists of:
a. AP report containing information regarding:

1. significant violations of legislation regulations conducted by the Party;
2. significant weaknesses in the control process of preparation and presentation of the Party's financial reports;
3. significant weaknesses in the Party's internal controls; and/or
4. conditions or estimated conditions that may endanger the continuity of the Party's business; and
   b. other incidental AP and/or KAP reports requested by the Otoritas Jasa Keuangan.
   (5) The KAP service activity report provided to the Party contains information at least regarding:
   a. KAP information; b. list of registered APs;
   c. list of audit team members other than registered APs;
   d. list of cooperation agreements signed during the reporting period; e. list of assignments completed in the same reporting period; f. list of assignments not completed in the same reporting period; g. list of completion of assignments from previous reporting periods; h. list of audit team member assignments to the Party;
   i. summary of contract payment receipts during the reporting period; and
   j. details of contract payment receipts by the KAP from the Party.
   (6) The KAP service activity report provided to the Party covers services provided by APs and/or KAPs to the Party within a period of 1 (one) year since:
   a. April 1 to March 31 of the following year; or b. registered with the Otoritas Jasa Keuangan if registered for less than 1 (one) year.
   (7) Further provisions regarding information on violations, weaknesses, and estimated conditions as referred to in paragraph (4) letter a are determined by the Otoritas Jasa Keuangan.

Article 37
(1) KAPs are obliged to submit the KAP service activity report as referred to in Article 36 paragraph (3) to the Otoritas Jasa Keuangan every year at the latest by April 15.
(2) KAPs are obliged to prepare and submit corrections for errors in information in the KAP service activity report as referred to in Article 36 paragraph (3) to the Otoritas Jasa Keuangan.
(3) APs are obliged to submit the report as referred to in Article 36 paragraph (4) letter a to the Otoritas Jasa Keuangan, accompanied by supporting documents, at the latest 3 (three) working days since discovery.

Article 38
If the deadline for submission of reports submitted by KAPs as referred to in Article 37 paragraph (1) falls on a Saturday, Sunday, and/or other public holidays, the submission deadline is on the next working day.

Article 39
(1) KAPs are obliged to submit reports on changes in AP and/or KAP data to the Otoritas Jasa Keuangan with supporting documents at the latest 10 (ten) working days after the date of approval or notification of data changes from the Minister. (2) Reports on changes in AP and/or KAP data as referred to in paragraph (1) are:
a. changes in KAP business license; b. changes in KAP address;
c. changes in KAP Partner composition;
d. changes in KAP leader; e. revocation of AP license by the Minister; f. AP death; g. revocation of KAP license by the Minister; h. changes in KAP cooperation with foreign public accountant offices or foreign audit organizations;
i. suspension of service provision for a temporary period based on approval from the Minister;

and/or j. extension of the AP license.
(3) Reports on changes to AP and/or KAP data as referred to in paragraph (2) letters a through i shall be submitted by the KAP online through the integrated licensing and registration system of the Financial Services Authority. (4) Reports on changes to AP and/or KAP data as referred to in paragraph (2) letter j shall be submitted by the KAP offline to the Financial Services Authority addressed to the Executive Head of the Capital Market, Derivative Financial, and Carbon Exchange Supervision Department. (5) In the event that the integrated licensing and registration system of the Financial Services Authority cannot be used for online submission of reports as referred to in paragraph (3), the KAP shall submit the said reports offline to the Financial Services Authority addressed to the Executive Head of the Capital Market, Derivative Financial, and Carbon Exchange Supervision Department. (6) The Financial Services Authority develops an administrative management system for AP and/or KAP for the updating of data and information regarding AP and/or KAP recorded in the list of AP and KAP at the Financial Services Authority based on:
a. changes to AP and/or KAP data from the Minister; and/or b. information from other parties.
(7) In the event that the system as referred to in paragraph (6) is available, the KAP is not required to submit reports on changes to data as referred to in paragraph (1) to the Financial Services Authority.

Article 40
(1) A KAP that is late in submitting reports as referred to in Article 37 paragraph (1) and Article 39 paragraph (1) shall be subject to administrative sanctions in the form of a fine of IDR 100,000.00 (one hundred thousand rupiah) per working day and a maximum of IDR 5,000,000.00 (five million rupiah) per report. (2) A KAP that violates the provisions as referred to in Article 37 paragraph (2) shall be subject to administrative sanctions in the form of a written reprimand or written warning accompanied by a deadline for correction. (3) Administrative sanctions as referred to in paragraph (2) may be preceded by a written instruction. (4) An AP that is late in submitting reports as referred to in Article 37 paragraph (3) shall be subject to administrative sanctions in the form of a fine of IDR 5,000,000.00 (five million rupiah). (5) The imposition of administrative sanctions as referred to in paragraph (1) and paragraph (2) does not eliminate the obligation to submit:
a. reports for AP and KAP that have not yet submitted reports as referred to in Article 37 paragraph (1), paragraph (3), and Article 39 paragraph (1); or b. report corrections as referred to in Article 37 paragraph (2).

CHAPTER XII
MEDIA FOR SUBMITTING APPLICATIONS AND REPORTS OF AP AND KAP TO THE FINANCIAL SERVICES AUTHORITY

Article 41
(1) AP and/or KAP shall submit:
a. applications for AP and/or KAP registration as referred to in Article 16 accompanied by requirement documents as referred to in Article 18; b. applications for approval of addition and reduction of service scope in the financial service sector as referred to in Article 22 paragraph (2) and paragraph (4);
c. applications for reactivation as referred to in Article 30 paragraph (1); and
d. applications for resignation of AP and/or KAP as referred to in Article 31 paragraph (1), online through the integrated licensing and registration system of the Financial Services Authority.
(2) KAP shall submit reports and/or corrections of errors in information in service provision activity reports as referred to in Article 37 paragraph (1) and/or paragraph (2) online through the reporting system of the Financial Services Authority. (3) In the event that the integrated licensing and registration system of the Financial Services Authority and/or the reporting system of the Financial Services Authority cannot be used for online submission of applications and/or reports as referred to in paragraph (1) and paragraph (2), AP and/or KAP shall submit the said applications and/or reports offline to the Financial Services Authority addressed to the Executive Head of the Capital Market, Derivative Financial, and Carbon Exchange Supervision Department. (4) Further provisions regarding the format, filling guidelines, and submission application for applications and/or reports as referred to in paragraph (1) and/or paragraph (2) shall be determined by the Financial Services Authority.

Article 42
(1) In the event that the reporting system of the Financial Services Authority experiences technical disturbances or force majeure occurs at the report submission deadline so that AP and/or KAP cannot submit reports, the Financial Services Authority shall notify AP and/or KAP of the technical disturbance in writing and deliver it:
a. directly to AP and/or KAP; b. through the reporting system of the Financial Services Authority;
c. through electronic media; and/or
d. other media.
(2) AP and/or KAP shall submit reports at the latest 2 (two) working days after the Financial Services Authority notifies that the technical disturbance at the Financial Services Authority as referred to in paragraph (1) has been resolved. (3) In the event that the integrated licensing and registration system of the Financial Services Authority experiences technical disturbances or force majeure occurs, AP and/or KAP shall submit applications as referred to in Article 41 paragraph (1) offline to the Financial Services Authority addressed to the Executive Head of the Capital Market, Derivative Financial, and Carbon Exchange Supervision Department. (4) A KAP experiencing force majeure so that it cannot submit reports online as referred to in Article 41 paragraph (2) until the submission deadline shall notify in writing to the Financial Services Authority to obtain a postponement of the report submission deadline. (5) The notification letter and report as referred to in paragraph (4) shall be submitted to the Financial Services Authority addressed to the Executive Head of the Capital Market, Derivative Financial, and Carbon Exchange Supervision Department. (6) A KAP experiencing force majeure so that it cannot submit applications as referred to in Article 41 paragraph (1) online shall submit the application offline to the Financial Services Authority addressed to the Executive Head of the Capital Market, Derivative Financial, and Carbon Exchange Supervision Department.

Article 43
Reports as referred to in Article 37 paragraph (3) shall be submitted offline to the Financial Services Authority, for:
a. Banks, with the address:

1. The relevant Bank Supervision Department for banks with headquarters or branches of banks located abroad that are in the Special Capital Region of Jakarta Province; or
2. The Regional Office of the Financial Services Authority or the local Office of the Financial Services Authority according to the area where the bank's headquarters is located;
   b. Parties in the Capital Market sector, addressed to the relevant Capital Market Supervision Department; and
   c. Parties in the Non-Bank Financial Sector (IKNB), addressed to the relevant Non-Bank Financial Sector Supervision Department.

CHAPTER XIII
SUPERVISION FOLLOW-UP ON THE USE OF AP AND/OR KAP SERVICES

Article 44
(1) The Financial Services Authority has the authority to impose administrative sanctions on any party that violates this Financial Services Authority Regulation, including parties who cause the violation to occur. (2) Administrative sanctions as referred to in paragraph (1) may include:
a. written reprimand or written warning; b. fines;
c. suspension of registration;
d. restriction of cooperation; and/or e. cancellation of registration.

Article 45
AP and/or KAP subject to administrative sanctions in the form of written reprimands or written warnings as referred to in Article 17 paragraph (3), Article 23 paragraph (2), Article 25 paragraph (2), Article 35, and/or Article 40 paragraph (2) a total of 3 (three) times within a period of 2 (two) years shall be subject to administrative sanctions in the form of registration suspension for a maximum of 1 (one) year.

Article 46
(1) The Financial Services Authority imposes administrative sanctions in the form of registration cancellation for:
a. AP and/or KAP subject to administrative sanctions in the form of registration suspension as referred to in Article 17 paragraph (4), Article 23 paragraph (3), Article 24 paragraph (1), paragraph (2), paragraph (4), Article 25 paragraph (3), Article 33, and/or Article 45 a total of 2 (two) times within a period of 3 (three) years; b. Sole proprietorship KAPs with an AP subject to sanctions in the form of registration cancellation at the Financial Services Authority as referred to in Article 17 paragraph (5), paragraph (6), Article 24 paragraph (4), and/or Article 46 paragraph (2); and/or
c. Partnership KAPs with at least 2 (two) APs subject to sanctions in the form of registration cancellation at the Financial Services Authority as referred to in Article 17 paragraph (5), paragraph (6), Article 24 paragraph (4), and/or Article 46 paragraph (2) within a period of 2 (two) years.
(2) An AP declared by the Financial Services Authority to have committed serious violations of this Financial Services Authority Regulation or other applicable legislation shall be subject to administrative sanctions in the form of registration cancellation at the Financial Services Authority and/or administrative sanctions in the form of fines of up to IDR 5,000,000,000.00 (five billion rupiah). (3) A KAP declared by the Financial Services Authority to have committed serious violations of this Financial Services Authority Regulation or other applicable legislation shall be subject to administrative sanctions in the form of registration cancellation at the Financial Services Authority and/or administrative sanctions in the form of fines of up to IDR 25,000,000,000.00 (twenty-five billion rupiah). (4) The leader of a KAP subject to administrative sanctions in the form of registration cancellation at the Financial Services Authority as referred to in paragraph (1) and paragraph (3) shall be subject to administrative sanctions in the form of registration suspension for a maximum of 2 (two) years at the Financial Services Authority. (5) For foreign public accounting firms or foreign audit organizations cooperating with a KAP subject to registration cancellation sanctions from the Financial Services Authority, and based on Financial Services Authority examinations, the foreign public accounting firm or foreign audit organization is declared not to have conducted quality reviews and training for the KAP as referred to in Article 21 paragraph (5), subject to administrative sanctions in the form of:
a. restriction of cooperation with the KAP for a period of at least 1 (one) year; and/or b. administrative sanctions in the form of fines of up to IDR 50,000,000,000.00 (fifty billion rupiah).

CHAPTER XIV
OTHER PROVISIONS

Article 47
The Financial Services Authority may coordinate with the Ministry of Finance in providing information and/or recommendations for the revocation of AP and/or KAP licenses, for violations committed by AP and/or KAP against this Financial Services Authority Regulation and/or applicable legislation.

CHAPTER XV
TRANSITIONAL PROVISIONS

Article 48
Upon the commencement of this Financial Services Authority Regulation:

1. Applications for registration, addition and reduction of service scope, temporary cessation of service provision, applications for reactivation, and/or resignation submitted by AP and/or KAP that have been accepted by the Financial Services Authority before this Financial Services Authority Regulation takes effect shall be processed in accordance with Financial Services Authority Regulation Number 13/POJK.03/2017 concerning the Use of Public Accountant and Public Accounting Firm Services in Financial Service Activities.
2. Parties, AP, and/or KAP that committed violations of the provisions on the use of AP and KAP services in financial service activities occurring before this Financial Services Authority Regulation takes effect and are currently being examined by the Financial Services Authority shall be subject to administrative sanctions as referred to in this Financial Services Authority Regulation.
3. Parties, AP, and/or KAP that committed violations of the provisions on the use of AP and KAP services in financial service activities occurring before this Financial Services Authority Regulation takes effect and are discovered after this Financial Services Authority Regulation takes effect shall be subject to administrative sanctions as referred to in this Financial Services Authority Regulation.

CHAPTER XVI
CLOSING PROVISIONS

Article 49
Upon the commencement of this Financial Services Authority Regulation, Financial Services Authority Regulation Number 13/POJK.03/2017 concerning the Use of Public Accountant and Public Accounting Firm Services in Financial Service Activities (State Gazette of the Republic of Indonesia Year 2017 Number 62, Supplement to the State Gazette of the Republic of Indonesia Number 6036) is repealed and declared invalid.

Article 50
This Financial Services Authority Regulation shall take effect on the date of its promulgation.

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

To ensure that everyone knows it, order the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Determined in Jakarta on July 11, 2023
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

Promulgated in Jakarta on July 11, 2023
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2023 NUMBER 17/OJK

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 9 YEAR 2023
CONCERNING
THE USE OF PUBLIC ACCOUNTANT AND PUBLIC ACCOUNTING FIRM SERVICES IN FINANCIAL SERVICE ACTIVITIES

I. GENERAL
To create market discipline, it needs to be supported by transparent and high-quality financial information from Parties. High-quality financial information is a reflection of the implementation of good governance, including through the organization of external audit functions by APs and KAPs. Parties in an independent relationship use the services of APs and KAPs to support financial service sector activities to improve the quality and credibility of an entity's financial information. High-quality financial information is widely used by the public in decision-making to realize a healthy national economy. In line with legislation and the AP professional code of ethics regulating the restriction of audit service usage, harmonization of regulations is needed to realize an independent relationship and also provide an adequate learning curve to understand the Party's condition in providing services. Furthermore, from the side of AP and KAP activity implementation at the Financial Services Authority, simplification of processes and documentation in administrative management is needed. Updating AP and KAP data and information at the Financial Services Authority will also be accommodated through data and information exchange with the Ministry of Finance. Implementation of existing regulations needs to be improved to optimize the administrative management and supervision of the Financial Services Authority over APs and KAPs and support independence in providing credible and high-quality financial information. Based on the above, it is necessary to update Financial Services Authority Regulation Number 13/POJK.03/2017 concerning the Use of Public Accountant and Public Accounting Firm Services in Financial Service Activities.

II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.

Article 2
Paragraph (1)
Letter a
What is meant by "AP registered with the Financial Services Authority" is an AP registered with one or more financial service sectors at the Financial Services Authority.
Example:
PT Bank "ABC" Tbk. because it is a public company must use the services of:

1. A KAP registered with the Financial Services Authority; and
2. An AP who is at least registered in the Banking sector and the Capital Market sector.
   Letter b
   Sufficiently clear.
   Letter c
   What is meant by "AP has competence according to the complexity of the Party's business" includes that the AP has experience and/or audit knowledge of companies that have similar business activities and transactions to those of the Party. The complexity of the Party's business is reflected in total assets, types of business activities, management information systems used, and business networks. Paragraph (2) Examples of reports that must be audited or examined by an AP are annual financial publication reports for commercial banks in accordance with Financial Services Authority Regulations regarding transparency and bank report publication. Other examples of assignments are analyses and opinions of accountants registered with the Financial Services Authority regarding the tax aspects of Indonesian deposit certificates for foreign and domestic investors in accordance with Financial Services Authority Regulations regarding public offerings of Indonesian deposit certificates. What is meant by "written instruction" is a written instruction in accordance with Financial Services Authority Regulations regarding written orders. Paragraph (3) Written instructions are part of supervision follow-up. Paragraph (4) Sufficiently clear.

Article 3
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Letter a
What is meant by "person within the KAP" is:

1. persons who are part of the audit, review, other assurance, and/or non-assurance assignments, namely:
   a. Partner; b. Leader;
   c. Professional employee; and
   d. Reviewer, who participate in the assignment;
2. persons who are part of the execution chain or command, namely the KAP leader and all persons who:
   a. supervise or have direct management responsibility for the audit; b. evaluate performance or recommend compensation for partners in the audit assignment; or
   c. provide quality control or other supervision over the audit; and
3. any other Partner, leader, or professional employee of the KAP and affiliates of the KAP that have provided audit, review, other assurance, and/or non-assurance services to the Party.
   Letter b
   Sufficiently clear.
   Letter c
   Sufficiently clear.
   Letter d
   Sufficiently clear.
   Letter e
   Sufficiently clear.
   Letter f
   Example:
   Benefits of a new perspective (fresh eye perspective) that will be obtained through the replacement of AP, KAP, and audit teams from the KAP are that they can provide a more objective view of the Party. Letter g Potential risks from the use of audit services by the same KAP consecutively for a sufficiently long period include threats to self-interest and threats of familiarity. Letter h Sufficiently clear. Paragraph (6) Written instructions for the replacement of AP and/or KAP are accompanied by reasons and considerations for the replacement and the deadline for fulfilling the appointment of AP and/or KAP.

Article 4
Sufficiently clear.

Article 5
Paragraph (1)
What is meant by "unable to complete the audit of annual historical financial information" includes APs and/or KAPs that are included in the list of temporarily inactive APs and KAPs or the list of permanently inactive APs and KAPs during the Professional Assignment Period. The Professional Assignment Period starts on the date of fieldwork or assignment signing, whichever is earlier, and ends on the date of the AP's report or written notification by the AP or KAP or client to the Financial Services Authority that the assignment is completed, whichever is earlier. Paragraph (2) Sufficiently clear.

Article 6
Sufficiently clear.

Article 7
Paragraph (1)
Example: PT Financing Company "FGH" Tbk. uses audit services for historical financial information from AP "T" for the years 2021, 2022, 2025, 2026, 2027, 2029, and 2031.
Paragraph (2)
The cooling-off period is known as the cooling-off period.
Letter a
What is meant by "Engagement Partner" is a Partner or other personnel in the KAP who is responsible for the engagement and its implementation, and the report issued on behalf of the KAP, and when required, has the appropriate authority from the professional body or regulator in accordance with the Public Accountant Association's code of ethics. Letter b What is meant by "Engagement Quality Control Reviewer" is an AP appointed to conduct quality control in the engagement in accordance with the Public Accountant Association's code of ethics. Letter c Examples of other engagement audit Partners are engagement audit Partners responsible for significant subsidiaries or divisions. Paragraph (3) Example of cumulative calculation over 7 (seven) years since the 2017 fiscal year:
PT Insurance "XYZ" Tbk. has used an AP since 2015, 2016, 2017, 2019, 2020, 2021, 2023, 2024, and 2025, so the cumulative calculation over 7 (seven) years is calculated starting from 2017, namely 2017, 2019, 2020, 2021, 2023, 2024, and 2025. Paragraph (4) Sufficiently clear.

Article 8
Paragraph (1)
Example:

1. PT Insurance "GHI" uses audit services for historical financial information from AP "X" starting from the 2023 fiscal year. PT Insurance "GHI" can only use the services of AP "X" consecutively for the fiscal years 2023, 2024, 2025, 2026, and 2027.
2. Financing Company "PQR" uses audit services for historical financial information from AP "L" starting from the 2024 fiscal year. Financing Company "PQR" can only use the services of AP "L" consecutively for the fiscal years 2024, 2025, 2026, 2027, and 2028.
   Paragraph (2)
   What is meant by "AP who is an associated party" is an AP who does not sign the independent auditor's report but is directly involved in providing audit services for annual historical financial information. Example of calculating the restriction period for using audit services for KAP personnel with a position 1 (one) level below the AP involved in providing audit services:
   AP "A" acts as the signing partner in the audit of annual historical financial information for BPR "MNO" for the 2021 fiscal year. Subsequently, AP "A" changes role to manager in the audit of annual historical financial information for the 2022 fiscal year. In this case, the audit service period for AP "A" is counted as 2 (two) consecutive fiscal years. Paragraph (3) Example:
   BPR "GHI" uses audit services for historical financial information from AP "X" for the fiscal years 2023, 2024, 2025, 2026, and 2027. The cooling-off period that BPR "GHI" must go through is the fiscal years 2028 and 2029. Thus, BPR "GHI" can only use the services of AP "X" again starting from the 2030 fiscal year.

Article 9
Paragraph (1)
Self-assessment is known as self-assessment.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.

Article 10
Paragraph (1)
Employment agreements include among other things the scope of the audit.
Paragraph (2)
Specific audit scope aims to provide AP with audit implementation guidelines in accordance with:

1. legislation that generally has a direct impact on the determination of material amounts and disclosures in financial statements; and
2. other legislation that does not directly impact the determination of amounts and disclosures in financial statements, but its compliance is fundamental for business operation activities, for the entity's ability to maintain its business, or to avoid severe sanctions,
   to obtain a sufficient understanding of the Party's relationships and transactions in the presentation of reports

financial statements that are fair or not misleading.
Paragraph (3)
Sufficiently clear.
Article 11
Sufficiently clear.
Article 12
Paragraph (1)
Letter a
Documents appointing the AP and KAP include, among others, the minutes of the General Meeting of Shareholders and the work agreement between the Party and the KAP.
Letter b
The report on the realization of the use of AP and KAP services covers the results of the Audit Committee's evaluation of the implementation of audit services on annual historical financial information and information on the transaction of using KAP services. Paragraph (2) Sufficiently clear. Paragraph (3) Information errors include, among others, the incompleteness of documents that must be fulfilled. Paragraph (4) Sufficiently clear. Paragraph (5) Sufficiently clear. Paragraph (6) Sufficiently clear.
Article 13
Paragraph (1)
What is meant by "technical disruption" is a disruption caused by technical problems that result in the Party being unable to submit reports online, including damage and/or disruption to the database (database) or communication network at the Financial Services Authority (Otoritas Jasa Keuangan). Letter a Conducted directly, including by letter. Letter b Sufficiently clear. Letter c Electronic media includes, among others, electronic mail. Letter d Sufficiently clear. Paragraph (2) Example:
The Financial Services Authority's reporting system experienced a technical disruption on Friday, June 30, 2023, which was the deadline for submitting the report on the realization of the use of AP and/or KAP services for data as of December 31, 2022. Subsequently, the Financial Services Authority announced that the system had operated normally again on Tuesday, July 4, 2023. The Party submits the report on the realization of the use of AP and/or KAP services for data as of December 31, 2022, at the latest 2 (two) working days thereafter, namely on Thursday, July 6, 2023. Paragraph (3) Force majeure conditions consist of natural disasters, non-natural disasters, and/or social disasters that disrupt the operational activities of the Party, which are justified by officials of the relevant local government agency. Paragraph (4) Example:
PT Bank "ABC" Tbk. operates in the Banking and Capital Market sectors, therefore PT Bank "ABC" Tbk. submits reports to the banking sector supervisor because PT Bank "ABC" Tbk. has an institutional structure in the form of a bank.
Article 14
Paragraph (1)
Example:
The report on the realization of the use of AP and/or KAP services for data as of December 31, 2022, is submitted no later than on June 30, 2023. The report on the realization of the use of AP and/or KAP services is submitted 3 (three) days later, namely on Wednesday, July 5, 2023. The Party is subject to administrative sanctions in the form of a fine of Rp300,000.00 (three hundred thousand rupiah), namely Rp100,000.00 (one hundred thousand rupiah) x 3 (three) working days. Paragraph (2) Sufficiently clear. Paragraph (3) Sufficiently clear. Paragraph (4) Sufficiently clear.
Article 15
Sufficiently clear.
Article 16
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
What is meant by "non-performing loans and/or financing" includes:

1. non-performing loans and/or financing recorded in the financial services information system;
2. non-performing loans and/or financing not yet reported by the financial service institution in the financial services information system, but based on research conducted by the Financial Services Authority, such loans and/or financing have met the criteria classified as non-performing according to applicable regulations;
   and/or
3. failure to fulfill obligations to settle securities transactions at securities companies.
   Letter d
   Sufficiently clear.
   Paragraph (3)
   Letter a
   What is meant by concurrent positions is:
4. working at another KAP or other supporting profession in financial services activities registered with the Financial Services Authority; and/or
5. working at client companies or client business groups with reports to be consolidated.
   Letter b
   Sufficiently clear.
   Letter c
   Competence and knowledge in the field of financial services and industries using AP services, among others, are fulfilled through professional education programs organized by institutions recognized by the Financial Services Authority, at least according to the number of professional credit units to be fulfilled as determined by the Financial Services Authority. Institutions recognized by the Financial Services Authority include, among others, the Public Accountant Professional Association established by the Minister. The aforementioned institutions coordinate with the Financial Services Authority in determining professional education material, the number of professional credit units, and the submission of recapitulation data of professional education participants. Paragraph (4) Sufficiently clear. Paragraph (5) What is meant by "if necessary" includes government policies regarding increasing compliance with the implementation of anti-money laundering and counter-terrorism financing programs; therefore, the Financial Services Authority requests additional requirements in the form of evidence that the AP has registered as a reporter in the application system for reporting the implementation of anti-money laundering and counter-terrorism financing programs organized by the Center for Reporting and Analysis of Financial Transactions. Paragraph (6) Sufficiently clear.
   Article 17
   Sufficiently clear.
   Article 18
   Paragraph (1)
   Letter a
   Sufficiently clear.
   Letter b
   The curriculum vitae includes, among others, educational history and work experience as an auditor, accompanied by an explanation of assignments previously received in the last 3 (three) years at the KAP, as well as information about the name of the audited company, the year of assignment, and the type of assignment. Letter c Sufficiently clear. Letter d Sufficiently clear. Letter e Sufficiently clear. Letter f Sufficiently clear. Letter g Sufficiently clear. Letter h Sufficiently clear. Paragraph (2) Sufficiently clear.
   Article 19
   Sufficiently clear.
   Article 20
   Sufficiently clear.
   Article 21
   Paragraph (1)
   Letter a
   Sufficiently clear.
   Letter b
   For inspection purposes, the Financial Services Authority may coordinate with the Ministry of Finance.
   Letter c
   What is meant by "public accountant professional standards, quality control standards, and professional code of ethics" are public accountant professional standards, quality control standards, and professional code of ethics published by the Public Accountant Professional Association. Included in quality control is the provision of adequate audit teams with competence according to the complexity of the Party's business. Letter d What is meant by "financial accounting standards" are financial accounting standards published by the professional association of accountants. Letter e Sufficiently clear. Paragraph (2) Institutions recognized by the Financial Services Authority include, among others, the Public Accountant Professional Association established by the Minister. The aforementioned institutions coordinate with the Financial Services Authority for determining PPL material and submitting recapitulation data of PPL realization followed by AP, no later than the end of January of the following year. Recapitulation data of PPL realization followed by AP is used, among others, for assessing compliance with PPL obligation fulfillment. Paragraph (3) Letter a Example:
   AP registered with the Financial Services Authority in the Banking sector and Capital Market sector must fulfill PPL activities totaling 10 (ten) units of continuing professional education credits each year, namely 5 (five) units of continuing professional education credits for the Banking sector and 5 (five) units of continuing professional education credits for the Capital Market sector. Letter b Example:
   AP "B" is registered and obtains a certificate of registration from the Financial Services Authority on October 5, 2023. AP "B"'s obligation to follow PPL according to the number of continuing professional education credit units determined by the Financial Services Authority begins in 2024. Paragraph (4) Sufficiently clear. Paragraph (5) Sufficiently clear.
   Article 22
   Paragraph (1)
   What is meant by "financial services sector" is the Banking sector, Capital Market sector, and/or Other Non-Bank Financial Institutions (IKNB).
   Paragraph (2)
   Example:
   AP "X" has registered with the Financial Services Authority in the Banking sector. If AP "X" also wishes to provide services to Parties in the Capital Market sector and/or IKNB, then AP "X" needs to add the scope of service provision in the Capital Market sector and/or IKNB at the Financial Services Authority. Paragraph (3) Sufficiently clear. Paragraph (4) Example:
   AP "Y" has registered with the Financial Services Authority in the Banking sector, Capital Market sector, and IKNB. If AP "Y" only wishes to provide services to Parties in the Banking sector and Capital Market sector, then AP "Y" can reduce the scope of service provision in the IKNB sector at the Financial Services Authority.
   Article 23
   Sufficiently clear.
   Article 24
   Paragraph (1)
   Sufficiently clear.
   Paragraph (2)
   Sufficiently clear.
   Paragraph (3)
   Example:
   AP "D" does not follow PPL totaling 5 (five) units of continuing professional education credits in 2023; AP "D" is subject to administrative sanctions in the form of a fine of Rp1,250,000.00 (one million two hundred fifty thousand rupiah), namely 5 (five) units of continuing professional education credits multiplied by Rp250,000.00 (two hundred fifty thousand rupiah). Paragraph (4) Example:
   "AP Y" is an affiliated party and KAP personnel with a position 1 (one) level below the AP, namely "Saudara C", who was involved in providing audit services for insurance company PQR from 2019 to 2023. The Financial Services Authority conducted an inspection in 2025 and found violations in the form of not applying public accountant professional standards, quality control standards, and professional code of ethics in the implementation of service provision. "AP Y" and "Saudara C" were registered with the Financial Services Authority in 2025. For these violations, "AP Y" and "Saudara C" are subject to administrative sanctions in the form of registration suspension for a maximum of 1 (one) year or cancellation of registration at the Financial Services Authority. Paragraph (5) What is meant by "Financial Services Authority tracking records" is all information recorded in the Financial Services Authority's administration regarding negative acts previously committed by individuals involved in providing audit services to the Party. Financial Services Authority tracking records are used by the Financial Services Authority as one of the information materials in the integrity factor assessment process in the licensing process at the Financial Services Authority. Example:
   "AP X" is an affiliated party and KAP personnel with a position 1 (one) level below the AP, namely "Saudara B", who was involved in providing audit services for PT ABC Tbk from 2019 to 2023. The Financial Services Authority conducted an inspection in 2025 and found violations in the form of not applying public accountant professional standards, quality control standards, and professional code of ethics in the implementation of service provision. "AP X" and "Saudara B" were not registered with the Financial Services Authority in 2025. For these violations, "AP X" and "Saudara B" are included in the Financial Services Authority tracking records.
   Article 25
   Sufficiently clear.
   Article 26
   Sufficiently clear.
   Article 27
   Paragraph (1)
   Sufficiently clear.
   Paragraph (2)
   What is meant by "specific conditions" is unplanned conditions, including, among others, the death of the KAP leader.
   Article 28
   Paragraph (1)
   AP recorded in the list of temporarily inactive AP and KAP refers to documents including:
   a. letter of approval for temporary cessation of service provision from the Minister; b. letter of administrative sanctions in the form of suspension of license from the Minister; and
   c. letter of administrative sanctions in the form of suspension of registration from the Financial Services Authority.
   Paragraph (2)
   Example:
   a. If the Minister imposes sanctions restricting AP service provision to the insurance industry, the AP is declared in the list of temporarily inactive AP and KAP in the IKNB sector. b. If the Minister imposes sanctions restricting AP service provision to commercial banks or rural banks, the AP is declared in the list of temporarily inactive AP and KAP in the Banking sector.
   c. If the Minister imposes sanctions restricting AP service provision to securities companies or issuers, the AP is declared in the list of temporarily inactive AP and KAP in the Capital Market sector.
   Paragraph (3)
   KAP recorded in the list of temporarily inactive AP and KAP refers to documents including:
   a. letter of administrative sanctions in the form of suspension of registration from the Financial Services Authority; and b. letter of administrative sanctions in the form of suspension of business license from the Minister. Letter a Sufficiently clear. Letter b Sufficiently clear. Letter c Sufficiently clear. Letter d Sufficiently clear. Letter e What is meant by "other reasons" includes all Partners in a partnership KAP with more than 1 (one) Partner registered being declared in the list of temporarily inactive AP and KAP. Paragraph (4) Letter a Sufficiently clear. Letter b Sufficiently clear. Letter c AP may defer PPL each year but does not eliminate the obligation to fulfill the number of continuing professional education credit units each year as determined by the Financial Services Authority.
   Article 29
   Paragraph (1)
   Letter a
   Sufficiently clear.
   Letter b
   Sufficiently clear.
   Letter c
   What is meant by "other reasons" includes license revocation or declaration of invalidity by the Minister or death.
   Paragraph (2)
   Sufficiently clear.
   Paragraph (3)
   Sufficiently clear.
   Article 30
   Paragraph (1)
   Sufficiently clear.
   Paragraph (2)
   Example:
   AP that has obtained approval for temporary cessation of service provision for 3 (three) years, namely from January 1, 2024, to December 31, 2026, can become active again by:
   a. following PPL per year in 2024, 2025, and 2026; or b. following PPL cumulatively in the period from January 1, 2025, to December 31, 2026.
   Paragraph (3)
   Example:
   a. For AP currently subject to administrative sanctions in the form of registration suspension and/or currently undergoing temporary cessation of service provision with the administrative sanction period of registration suspension or temporary cessation of service provision ending on December 31, 2023, such AP must submit a request for reactivation no later than December 31, 2024. b. For AP recorded in the list of temporarily inactive AP and KAP because not affiliated with a KAP registered with the Financial Services Authority as of December 31, 2023, such AP must be affiliated with one of the KAP registered with the Financial Services Authority and submit a request for reactivation no later than December 31, 2024. Paragraph (4) Sufficiently clear. Paragraph (5) Sufficiently clear. Paragraph (6) Additional requirements for reactivation of AP and/or KAP requested by the Financial Services Authority include supporting documents for the settlement of non-performing loans and/or financing.
   Article 31
   Paragraph (1)
   Sufficiently clear.
   Paragraph (2)
   Letter a
   Sufficiently clear.
   Letter b
   Reasons for rejection include:
   a. currently under inspection by the Financial Services Authority and/or other authorities; and/or b. currently providing services to the Party.
   Paragraph (3)
   Sufficiently clear.
   Paragraph (4)
   Sufficiently clear.
   Article 32
   Paragraph (1)
   In providing services to the Party, AP and KAP maintain independence and are free from conflicts of interest as referred to in the Law on Public Accountants.
   Paragraph (2)
   Sufficiently clear.
   Paragraph (3)
   Sufficiently clear.
   Paragraph (4)
   Sufficiently clear.
   Article 33
   Sufficiently clear.
   Article 34
   Paragraph (1)
   Communication can be:
   a. written communication, namely through written letters or electronic mail; or b. meetings between the AP and/or KAP and the supervisor.
   AP and/or KAP communicate with the supervision unit according to the type of financial services sector institution concerned.
   What is meant by "financial service institution" is banks, securities companies, investment advisors, and IKNB.
   Paragraph (2)
   Sufficiently clear.
   Paragraph (3)
   Information requested by the Financial Services Authority from AP and/or KAP includes audit inspection working papers if necessary.
   Article 35
   Sufficiently clear.
   Article 36
   Paragraph (1)
   Sufficiently clear.
   Paragraph (2)
   Sufficiently clear.
   Paragraph (3)
   Sufficiently clear.
   Paragraph (4)
   Letter a
6. Example of significant violations of statutory regulations committed by the Party include violations of maximum credit limits or maximum fund disbursement limits at banks.
7. Example of significant weaknesses in the control process for preparing and presenting the Party's financial statements include material differences between the values presented by the Party in the financial statements before audit or inspection and the results of the AP's testing.
8. Example of significant weaknesses in the Party's internal controls include manipulation or manipulation of the Party's financial statements.
9. Example of conditions or estimated conditions that can endanger the continuity of the Party's business include adjusted net working capital for securities companies and investment managers being less than required by applicable regulations.
   Letter b
   Sufficiently clear.
   Paragraph (5)
   Sufficiently clear.
   Paragraph (6)
   Services provided by AP and/or KAP include services that are still in the process of completion.
   Paragraph (7)
   Sufficiently clear.
   Article 37
   Paragraph (1)
   Example:
   The report on KAP service activities for the period April 1, 2022, to March 31, 2023, is submitted by KAP "XYZ" to the Financial Services Authority no later than April 15, 2023.
   Paragraph (2)
   Sufficiently clear.
   Paragraph (3)
   Reports submitted to the Financial Services Authority are those submitted when reports of significant violations, significant weaknesses, and/or conditions or estimated conditions that can endanger the continuity of the Party's business are received by the Financial Services Authority.
   Article 38
   Sufficiently clear.
   Article 39
   Paragraph (1)
   Sufficiently clear.
   Paragraph (2)
   Sufficiently clear.
   Paragraph (3)
   Sufficiently clear.
   Paragraph (4)
   Sufficiently clear.
   Paragraph (5)
   Sufficiently clear.
   Paragraph (6)
   Letter a
   Sufficiently clear.
   Letter b
   What is meant by "other parties" includes the Public Accountant Professional Association established by the Minister.
   Paragraph (7)
   Sufficiently clear.
   Article 40
   Sufficiently clear.
   Article 41
   Sufficiently clear.
   Article 42
   Sufficiently clear.
   Article 43
   Sufficiently clear.
   Article 44
   Paragraph (1)
   What is meant by "each party" includes parties involved in providing audit, inspection, or other assignments to AP and/or KAP.
   Paragraph (2)
   Sufficiently clear.
   Article 45
   Sufficiently clear.
   Article 46
   Paragraph (1)
   Letter a
   Example:
   AP and/or KAP are subject to administrative sanctions in the form of registration suspension, namely:
10. first time on January 15, 2023; and
11. second time on January 10, 2025.
    Thus, AP and/or KAP have received 2 (two) administrative sanctions in the form of registration suspension within a period of 3 (three) years.
    Letter b
    Sufficiently clear.
    Letter c
    Sufficiently clear.
    Paragraph (2)
    Example of serious violations include AP not implementing audit procedures according to public accountant professional standards in providing services, so that the issued financial statements are materially biased, impacting a decrease in public trust in the Party. Paragraph (3) Example of serious violations include KAP not implementing quality control procedures according to public accountant professional standards in providing services, so that the issued financial statements are materially biased, impacting a decrease in public trust in the Party. Paragraph (4) Sufficiently clear. Paragraph (5) Sufficiently clear.
    Article 47
    Sufficiently clear.
    Article 48
    Sufficiently clear.
    Article 49
    Sufficiently clear.
    Article 50
    Sufficiently clear.
    SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 42/OJK