Global Master Repurchase Agreement Indonesia

To:
The Board of Directors or Management of Financial Service Institutions At your location.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 33/SEOJK.04/2015 CONCERNING GLOBAL MASTER REPURCHASE AGREEMENT INDONESIA

In order to implement the provisions of Article 5 paragraph (5) of Financial Services Authority Regulation Number 9/POJK.04/2015 concerning Guidelines for Repurchase Agreement Transactions for Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2015 Number 151, Supplement to the State Gazette of the Republic of Indonesia Number 5711), it is necessary to regulate the Global Master Repurchase Agreement Indonesia in this Circular Letter of the Financial Services Authority, as follows:

I. GENERAL PROVISIONS

In this Circular Letter of the Financial Services Authority, the following terms are defined as:

1. Financial Service Institution is an institution that carries out activities in the Banking, Capital Market, Insurance, Pension Fund, Financing Institution, and Other Financial Service Institution sectors as referred to in the Law of the Republic of Indonesia Number 21 of 2011 concerning the Financial Services Authority.

2. Other Financial Service Institutions are pawnshops, guarantee institutions, Indonesian export financing institutions, secondary housing financing companies, and institutions that manage public funds that are mandatory, including organizers of social security, pension, and welfare programs, as referred to in legislation regarding pawnshops, guarantees, Indonesian export financing institutions, secondary housing financing companies, and management of mandatory public funds, as well as other financial service institutions... - 2 - ...other financial services institutions declared to be supervised by the Financial Services Authority based on legislation.

3. Repurchase Agreement Transaction which hereinafter is called Repo Transaction is a contract to sell or buy Securities with a promise to buy or sell back at a specified time and price.

4. International Capital Market Association, hereinafter abbreviated as ICMA, which was previously named The Bond Market Association (TBMA)/International Securities Market Association (ISMA), is an international association that drafts and publishes the Global Master Repurchase Agreement (hereinafter abbreviated as GMRA).

II. APPLICATION OF GLOBAL MASTER REPURCHASE AGREEMENT INDONESIA IN REPO TRANSACTIONS

1. Global Master Repurchase Agreement Indonesia, hereinafter abbreviated as GMRA Indonesia, is as stated in the Appendix which is an inseparable part of this Circular Letter of the Financial Services Authority.

2. GMRA Indonesia as referred to in item 1 is a written contract standard for Repo Transactions drafted based on the GMRA version of 2000 and its appendices published by ICMA and has been adjusted to conditions in Indonesia including special characteristics of the repo market, applicable laws, and market needs.

3. Financial Service Institutions conducting Repo Transactions are required to apply GMRA Indonesia in written contracts for Repo Transactions as regulated in Article 5 paragraph (1) of Financial Services Authority Regulation Number 9/POJK.04/2015 concerning Guidelines for Repurchase Agreement Transactions for Financial Service Institutions.

4. GMRA Indonesia as referred to in item 1 consists of:
   a. Global Master Repurchase Agreement (GMRA); b. Indonesia Domestic Transaction Annex (Indonesia Annex);
   c. Annex I Supplemental Terms & Condition;
   d. Annex II Confirmation Format; e. Buy/Sell Back Annex; - 3 - e. Buy/Sell Back Annex; f. Equity Annex; and g. Agency Annex.

5. Every written contract for Repo Transactions must apply GMRA Indonesia as referred to in item 4 consisting of:
   a. Global Master Repurchase Agreement (GMRA), Indonesia Domestic Transaction Annex (Indonesia Annex), Annex I Supplemental Terms & Condition, and Annex II Confirmation Format; and b. Buy/Sell Back Annex if the Financial Service Institution conducts Buy and Sell Back Transactions, Equity Annex if the traded Securities are equity-type Securities, and/or Agency Annex if the position of the Financial Service Institution acts as an agent.

6. The application of GMRA Indonesia in written contracts for Repo Transactions as referred to in item 3 is carried out with the following provisions:
   a. does not change the Global Master Repurchase Agreement (GMRA); and b. changes can only be made to the appendices of the Global Master Repurchase Agreement (GMRA), namely:

1. Indonesia Domestic Transaction Annex (Indonesia Annex);
2. Annex I Supplemental Terms & Condition;
3. Annex II Confirmation Format;
4. Buy/Sell Back Annex;
5. Equity Annex; and/or
6. Agency Annex,
   according to the needs or agreement of the parties with the provision that it does not violate Financial Services Authority Regulation Number... - 4 - ...Number 9/POJK.04/2015 concerning Guidelines for Repurchase Agreement Transactions for Financial Service Institutions.

III. CLOSING

This Circular Letter of the Financial Services Authority shall take effect on January 1, 2016.

Established in Jakarta on November 23, 2015
EXECUTIVE HEAD OF CAPITAL MARKET SUPERVISOR, signature NURHAIDA

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