Implementation of Good Corporate Governance for Securities Companies Acting as Underwriters and Securities Brokers

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 57 /POJK.04/2017
CONCERNING
THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE FOR SECURITIES COMPANIES CARRYING OUT BUSINESS ACTIVITIES AS UNDERWRITERS OF SECURITIES AND SECURITIES BROKERS BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in line with the development of the Indonesian capital market and to enhance protection of customer interests, it is necessary to improve the quality of securities companies carrying out business activities as underwriters of securities and securities brokers, among others by improving the performance of securities companies, increasing compliance with statutory regulations, and enhancing transparency of corporate governance practices and prevailing ethical values, through the improvement of good corporate governance; b. that based on the considerations referred to in letter a, it is necessary to establish a Financial Services Authority Regulation concerning the Implementation of Good Corporate Governance for Securities Companies Carrying Out Business Activities as Underwriters of Securities and Securities Brokers;

Recalling:

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

DECIDING:
To Establish: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE FOR SECURITIES COMPANIES CARRYING OUT BUSINESS ACTIVITIES AS UNDERWRITERS OF SECURITIES AND SECURITIES BROKERS.

CHAPTER I
GENERAL PROVISIONS

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

Securities Company is a Party that carries out business activities as an Underwriter of Securities, Securities Broker, and/or Investment Manager.
Good Corporate Governance of Securities Companies, hereinafter referred to as Corporate Governance, is the governance of a Securities Company that applies the principles of transparency, accountability, responsibility, independence, and fairness.
General Meeting of Shareholders, hereinafter abbreviated as GMS, is the organ of the Securities Company that has authority not delegated to the Board of Directors or Board of Commissioners as referred to in Law Number 40 of 2007 concerning Limited Liability Companies and/or the Articles of Association of the Securities Company.
Board of Directors is the organ of the Securities Company that has the authority and is fully responsible for the management of the Securities Company for the interests of the Securities Company, in accordance with the purpose and objectives of the Securities Company and represents the Securities Company, both inside and outside the court, in accordance with the provisions of the Articles of Association.
Board of Commissioners is the organ of the Securities Company that is tasked with carrying out general and/or specific supervision in accordance with the Articles of Association and providing advice to the Board of Directors.
Independent Commissioner is a member of the Board of Commissioners who comes from outside the Securities Company and meets the requirements for Independent Commissioners as referred to in this Financial Services Authority Regulation.
Controlling Shareholder is a party that directly or indirectly owns:
a. shares of at least 20% (twenty percent) of the shares issued by one Securities Company carrying out business activities as an Underwriter of Securities and/or Securities Broker and has voting rights; or b. shares of less than 20% (twenty percent) of the shares issued by one Securities Company carrying out business activities as an Underwriter of Securities and/or Securities Broker and has voting rights but it can be proven that they have exercised control, directly or indirectly, over the Securities Company carrying out business activities as an Underwriter of Securities and/or Securities Broker.
Business Plan is a written document describing the business activities plan of the Securities Company for a period of 1 (one) year, including plans to improve business performance, and strategies to realize such plans in accordance with established targets and timeframes, while still paying attention to the fulfillment of prudential regulations and the implementation of risk management.
Website is a collection of web pages containing information or data that can be accessed through an internet network system.
Public Accountant is a person who has obtained a license to provide services as regulated in statutory regulations concerning public accountants and is registered with the Financial Services Authority.
Securities are negotiable instruments, namely debt acknowledgment instruments, commercial paper, shares, bonds, debt certificates, Participation Units of Collective Investment Contracts, futures contracts over Securities, and any derivatives of Securities.
Underwriter of Securities is a Party that makes a contract with an Issuer to conduct a Public Offering for the benefit of the Issuer with or without the obligation to purchase unsold Securities.
Securities Broker is a Party that carries out business activities of buying and selling Securities for its own interest or for the interest of other Parties.
Co-Underwriter of Securities is an individual who acts on behalf of the interests of the Securities Company carrying out business activities as an Underwriter of Securities.
Co-Securities Broker is an individual who acts on behalf of the interests of the Securities Company carrying out business activities as a Securities Broker.
Stock Exchange Member is a Securities Broker that has obtained a business license from the Financial Services Authority and has the right to use the system and/or facilities of the Stock Exchange in accordance with Stock Exchange regulations.
Affiliation is:
a. family relationship due to marriage and descent up to the second degree, both horizontally and vertically; b. relationship between a Party with employees, directors, or commissioners of that Party;
c. relationship between 2 (two) companies where there is one or more members of the board of directors or board of commissioners that are the same;
d. relationship between a company and a Party, directly or indirectly, controlling or controlled by that company; e. relationship between 2 (two) companies controlled, directly or indirectly, by the same Party; or f. relationship between a company and major shareholders.

Article 2
(1) Securities Companies required to comply with the provisions of this Financial Services Authority Regulation are Securities Companies carrying out business activities as Underwriters of Securities and/or Securities Brokers that are Stock Exchange Members. (2) Securities Companies as referred to in paragraph (1) are required to implement Corporate Governance in every business activity at all levels or tiers of the organization. (3) The implementation of Corporate Governance as referred to in paragraph (2) is at least manifested in the following forms:
a. commitment of shareholders and GMS; b. implementation of duties and responsibilities of the Board of Directors;
c. implementation of duties and responsibilities of the Board of Commissioners;
d. prohibitions for the Board of Directors and Board of Commissioners; e. remuneration of the Board of Directors and Board of Commissioners; f. business ethics; g. internal control; h. Business Plan;
i. policy on violation reporting system and policy on customer complaint system;
j. Website; and k. reporting.

CHAPTER II
COMMITMENT OF SHAREHOLDERS AND GMS
Section One
Commitment of Shareholders

Article 3
(1) Shareholders of Securities Companies are required to meet integrity and financial feasibility requirements.
(2) Fulfillment of integrity and financial feasibility requirements as referred to in paragraph (1) can be done through an assessment of competence and propriety by the Financial Services Authority. (3) The integrity and financial feasibility requirements as referred to in paragraph (1), as well as the assessment of competence and propriety as referred to in paragraph (2), are regulated in the Financial Services Authority Regulation concerning licensing of Securities Companies carrying out business activities as Underwriters of Securities and Securities Brokers and the Financial Services Authority Regulation concerning assessment of competence and propriety for key personnel of financial service institutions.

Article 4
(1) Shareholders are prohibited from intervening in the implementation of business activities and/or operations of the Securities Company.
(2) Shareholders who serve as members of the Board of Directors or members of the Board of Commissioners must prioritize the interests of the Securities Company.

Section Two
GMS

Article 5
(1) Securities Companies are required to hold GMS in accordance with statutory regulations and the Articles of Association of the Securities Company.
(2) The holding of GMS as referred to in paragraph (1) must be preceded by a summons for the GMS.
(3) The summons for the GMS as referred to in paragraph (2) must be done at least 14 (fourteen) days before the date the GMS is held, without counting the date of summons and the date of the GMS. (4) The summons for the GMS as referred to in paragraph (2) must contain at least the following information:
a. date and time of the GMS; b. place of the GMS;
c. agenda of the meeting; and
d. information stating that materials related to the meeting agenda are available to shareholders from the date the GMS summons is issued until the GMS is held. (5) The summons for the GMS as referred to in paragraph (2) is done via registered letter, electronic mail, Website, and/or advertisement in a newspaper. (6) The obligations as referred to in paragraphs (2) to (5) may not be done as long as all shareholders with voting rights are present at the GMS and the decision of the GMS remains valid if approved unanimously.

Article 6
(1) Securities Companies are required to provide meeting agenda materials for shareholders.
(2) Meeting agenda materials as referred to in paragraph (1) are provided in the form of physical document copies and/or electronic document copies.
(3) Physical document copies as referred to in paragraph (2) are provided free of charge at the Securities Company's office if requested in writing by shareholders.

Article 7
GMS decision-making must:
a. support the healthy operational development of the Securities Company and the Indonesian capital market; and b. prioritize customer interests.

Article 8
(1) The holding of GMS as referred to in Article 5 must be recorded in GMS minutes and documented properly.
(2) Securities Companies are required to submit a summary of GMS minutes and proof of GMS summons as referred to in Article 5 paragraph (5) to the Financial Services Authority at the latest 7 (seven) working days after the date of the GMS. (3) The summary of GMS minutes as referred to in paragraph (2) must contain at least the following information:
a. date of the GMS, place of the GMS, time of the GMS, and agenda of the GMS; b. members of the Board of Directors and members of the Board of Commissioners present at the GMS;
c. the number of shares with valid voting rights present at the GMS and their percentage of the total number of shares with valid voting rights;
d. GMS decision-making mechanism; e. results of the vote including the number of votes in favor, against, and abstain (not voting) for each meeting agenda item, if decision-making is done by voting; and f. GMS decisions.

Article 9
(1) Shareholders may take binding decisions outside the GMS provided that all shareholders with voting rights approve in writing by signing the relevant proposal. (2) Binding decision-making outside the GMS as referred to in paragraph (1) is done in accordance with statutory regulations. (3) Binding decisions outside the GMS as referred to in paragraph (2) must be submitted by the Securities Company to the Financial Services Authority at the latest 7 (seven) working days after all shareholders sign the decision outside the GMS.

CHAPTER III
BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS
Section One
Implementation of Duties and Responsibilities of the Board of Directors

Article 10
The determination of the number and composition of Board of Directors members must take into account:
a. provisions of the Financial Services Authority Regulation concerning licensing of Securities Companies carrying out business activities as Underwriters of Securities and Securities Brokers; b. the condition of the Securities Company;
c. the diversity of knowledge, experience, and/or expertise required; and
d. effectiveness in decision-making.

Article 11
(1) Each member of the Board of Directors is required to meet integrity, financial reputation, and competence and expertise requirements in the capital market field. (2) Fulfillment of requirements as referred to in paragraph (1) is done through an assessment of competence and propriety by the Financial Services Authority. (3) The integrity, financial reputation, and competence and expertise requirements in the capital market field as referred to in paragraph (1) and the assessment of competence and propriety as referred to in paragraph (2) are regulated in the Financial Services Authority Regulation concerning licensing of Securities Companies carrying out business activities as Underwriters of Securities and Securities Brokers and the Financial Services Authority Regulation concerning assessment of competence and propriety for key personnel of financial service institutions. (4) In the event that a Board of Directors member no longer meets the integrity, financial reputation, and competence and expertise requirements in the capital market field as referred to in paragraph (1), the Board of Directors member is prohibited from taking legal actions as a member of the Board of Directors.

Article 12
(1) The Board of Directors is tasked with carrying out and is responsible for the management of the Securities Company for the interests of the Securities Company in accordance with the purpose and objectives established in the Articles of Association. (2) Duties and responsibilities for management as referred to in paragraph (1) are carried out in accordance with the authority of the Board of Directors regulated in statutory regulations and the Articles of Association. (3) Each member of the Board of Directors is required to carry out management as referred to in paragraph (1) with good faith, prudence, and full responsibility. (4) The Board of Directors is required to ensure the implementation of Corporate Governance as referred to in Article 2 paragraph (2). (5) To support the effectiveness of the implementation of duties and responsibilities, the Board of Directors may form committees and/or support units for the Board of Directors. (6) The Board of Directors is required to ensure that the committees and/or support units for the Board of Directors as referred to in paragraph (5) carry out their duties effectively.

Article 13
The Board of Directors is required to provide accurate, relevant, and timely data and information to the Board of Commissioners.

Article 14
The Board of Directors is required to follow up on audit findings and recommendations from the risk management function, compliance and internal audit function, results of supervision by the Board of Commissioners, and results of supervision by the Financial Services Authority.

Article 15
Every strategic policy and decision must be decided through a Board of Directors meeting.

Article 16
(1) The Board of Directors is required to hold Board of Directors meetings at least 1 (one) time every 2 (two) months.
(2) Board of Directors meetings as referred to in paragraph (1) may be held if attended by a majority of all Board of Directors members.
(3) Each member of the Board of Directors is required to attend at least 75% (seventy-five percent) of the total number of Board of Directors meetings as referred to in paragraph (1) during 1 (one) year. (4) Decisions of Board of Directors meetings as referred to in paragraph (1) are taken:
a. based on consensus; or b. based on the majority vote, in the event that consensus is not reached.
(5) Results of meetings as referred to in paragraph (1), including the existence of differing opinions and their reasons, must be recorded in meeting minutes and signed by the meeting chairperson and documented properly.

Article 17
(1) In order to enhance knowledge and understanding to assist in the implementation of duties, members of the Board of Directors are required to follow continuing education programs as regulated in the Financial Services Authority Regulation concerning licensing of Securities Companies carrying out business activities as Underwriters of Securities and Securities Brokers. (2) In addition to following continuing education programs as referred to in paragraph (1), the Board of Directors may follow other education and/or training.

Section Two
Implementation of Duties and Responsibilities of the Board of Commissioners

Article 18
(1) The determination of the number and composition of Board of Commissioners members must take into account:
a. provisions of the Financial Services Authority Regulation concerning licensing of Securities Companies carrying out business activities as Underwriters of Securities and Securities Brokers; b. the condition of the Securities Company;
c. the diversity of knowledge, experience, and/or expertise required; and
d. effectiveness in supervision and providing advice to the Board of Directors.
(2) The number of Board of Commissioners members does not exceed the number of Board of Directors members.

Article 19
(1) Securities Companies are required to have Independent Commissioners.
(2) In the event that the Board of Commissioners consists of more than 2 (two) people, the percentage of Independent Commissioners must be at least 30% (thirty percent) of the total number of Board of Commissioners members.

Article 20
(1) Each member of the Board of Commissioners is required to meet integrity, financial reputation, and competence and expertise requirements in the capital market field. (2) Fulfillment of requirements as referred to in paragraph (1) is done through an assessment of competence and propriety by the Financial Services Authority. (3) The integrity, financial reputation, and competence and expertise requirements in the capital market field as referred to in paragraph (1) and the assessment of competence and propriety as referred to in paragraph (2) are regulated in the Financial Services Authority Regulation concerning licensing of Securities Companies carrying out business activities as Underwriters of Securities and Securities Brokers and the Financial Services Authority Regulation concerning assessment of competence and propriety for key personnel of financial service institutions. (4) In the event that a Board of Commissioners member no longer meets the integrity, financial reputation, and competence and expertise requirements in the capital market field as referred to in paragraph (1), the Board of Commissioners member is prohibited from taking legal actions as a member of the Board of Commissioners.

Article 21
(1) The Board of Commissioners is tasked and responsible for supervising management policies, the general course of management of the Securities Company, and providing advice to the Board of Directors. (2) In the event that the Board of Commissioners participates in decision-making regarding matters established in the Articles of Association or statutory regulations, such decision-making is done in its function as a supervisor and advisor to the Board of Directors. (3) The Board of Commissioners is required to supervise the implementation of Corporate Governance as referred to in Article 2 paragraph (2). (4) The Board of Commissioners is required to carry out its duties as referred to in paragraph (1) independently.

Article 22
Independent Commissioners as referred to in Article 19 must meet the following requirements:
a. are not persons who work or have authority and responsibility to plan, lead, control, or supervise the activities of the Securities Company in the last 6 (six) months, except for reappointment as an Independent Commissioner of the Securities Company in the next period; b. do not have shares, directly or indirectly, in the Securities Company;
c. do not have an Affiliation relationship with the Securities Company, members of the Board of Commissioners, members of the Board of Directors, and/or Controlling Shareholders of the Securities Company; and
d. do not have a business relationship, directly or indirectly, related to the business activities of the Securities Company.

Article 23
(1) In carrying out the duties and responsibilities of the Board of Commissioners as referred to in Article 21, the Board of Commissioners is required to carry out audit functions through Independent Commissioners. (2) The audit function as referred to in paragraph (1) involves reviewing:
a. financial information to be issued by the Securities Company to the public and/or authorities; b. independence, scope of assignment, and costs as a basis for the appointment of Public Accountants;
c. plans and implementation of audits by Public Accountants; and
d. implementation of risk management functions and compliance and internal audit functions of the Securities Company.
(3) In carrying out functions as referred to in paragraph (2), the Board of Commissioners may form an audit committee chaired by an Independent Commissioner.

Article 24
The Board of Commissioners is required to ensure that the Board of Directors follows up on audit findings and recommendations from the risk management function, compliance and internal audit function, results of supervision by the Board of Commissioners, and results of supervision by the Financial Services Authority.

Article 25
(1) To support the effectiveness of the implementation of duties and responsibilities, in addition to being able to form an audit committee as referred to in Article 23 paragraph (3), the Board of Commissioners may form other committees. (2) The Board of Commissioners is required to ensure that the committees as referred to in paragraph (1) and Article 23 paragraph (3) carry out their duties effectively.

Article 26
(1) The Board of Commissioners is required to report to the Financial Services Authority if it knows of indications of violations of statutory regulations in the financial services sector that can endanger the continuity of business activities of the Securities Company, committed by members of the Board of Commissioners, members of the Board of Directors, and/or employees of the Securities Company, at the latest 3 (three) working days from when the indication of violation is known. (2) The Board of Commissioners is required to hold Board of Commissioners meetings inviting the Board of Directors to discuss indications of violations of statutory regulations in the financial services sector as referred to in paragraph (1).

Article 27
(1) The Board of Commissioners is required to hold meetings at least 1 (one) time in 3 (three) months.
(2) Board of Commissioners meetings as referred to in paragraph (1) may be held if attended by a majority of all Board of Commissioners members.
(3) Each member of the Board of Commissioners is required to attend at least 75% (seventy-five percent) of the total number of Board of Commissioners meetings as referred to in paragraph (1) during 1 (one) year. (4) Decisions of Board of Commissioners meetings as referred to in paragraph (1) are taken:
a. based on consensus; or b. based on the majority vote, in the event that consensus is not reached.
(5) Results of meetings as referred to in paragraph (1), including the existence of differing opinions and their reasons, must be recorded in meeting minutes and signed by the meeting chairperson and documented properly. (6) Provisions as referred to in paragraphs (1) to (5) do not apply to Securities Companies that have only 1 (one) member of the Board of Commissioners.

Article 28
(1) In order to enhance knowledge and understanding to assist in the execution of their duties, members of the Board of Commissioners of a Securities Company are required to participate in continuing education programs as regulated in the Financial Services Authority Regulation regarding the licensing of Securities Companies conducting business activities as Issuance Underwriters and Securities Trading Brokers. (2) In addition to participating in continuing education programs as referred to in paragraph (1), members of the Board of Commissioners may participate in other education and/or training.

Third Section
Prohibitions for the Board of Directors and Board of Commissioners

Article 29
Members of the Board of Directors and/or members of the Board of Commissioners are prohibited from:
a. abusing their authority for the benefit of themselves, their families, and/or other parties; and b. obtaining and/or receiving personal benefits from the activities of the Securities Company, either directly or indirectly, other than lawful income.

CHAPTER IV
REMUNERATION OF THE BOARD OF DIRECTORS AND BOARD OF COMMISSIONERS

Article 30
(1) The remuneration structure for members of the Board of Directors and members of the Board of Commissioners may consist of:
a. salary; b. honorarium;
c. incentives; and/or
d. allowances that are fixed and/or variable.
(2) Remuneration for members of the Board of Directors and members of the Board of Commissioners must take into account:
a. remuneration applicable in the industry and scale of the Securities Company's business; b. the duties, responsibilities, and authority of members of the Board of Directors and members of the Board of Commissioners linked to risks and the achievement of goals and performance of the Securities Company, both in the short term and in the long term;
c. performance targets or performance of each member of the Board of Directors and/or members of the Board of Commissioners; and
d. the balance of allowances between those that are fixed and those that are variable.

CHAPTER V
BUSINESS ETHICS

First Section
Behavior of Securities Companies in Conducting Business Activities

Article 31
Securities Companies are required to:
a. conduct their business activities based on good business ethics, as regulated in laws and regulations in the capital market sector governing the behavior of Securities Companies in conducting business activities as Issuance Underwriters and/or as Securities Trading Brokers; and/or b. apply the principle of knowing the customer as regulated in laws and regulations regarding anti-money laundering and counter-terrorism financing in the financial services sector.

Second Section
Code of Ethics of Securities Companies and Guidelines for the Board of Directors or Board of Commissioners

Article 32
(1) Securities Companies are required to have a code of ethics applicable to all members of the Board of Directors, members of the Board of Commissioners, employees/staff, and supporting organs owned by the Securities Company. (2) The code of ethics as referred to in paragraph (1) is drafted by the Board of Directors and Board of Commissioners, containing at least:
a. corporate values; b. principles for the execution of duties by the Board of Directors, Board of Commissioners, employees/staff, and/or supporting organs owned by the Securities Company, which are carried out in good faith, with full responsibility, and with caution;
c. the Securities Company's policy regarding conflicts of interest;
d. handling of code of ethics violations; and e. accountability for the imposition of sanctions for code of ethics violations.
(3) The code of ethics as referred to in paragraph (1) is socialized to all employees/staff of the Securities Company.
(4) Members of the Board of Directors, members of the Board of Commissioners, employees/staff, and/or supporting organs owned by the Securities Company are required to report suspected violations of the code of ethics through the violation reporting system related to the existence of suspected violations of the code of ethics.

Article 33
(1) Securities Companies are required to have guidelines binding every member of the Board of Directors and members of the Board of Commissioners.
(2) The guidelines as referred to in paragraph (1) are drafted by the Board of Directors and Board of Commissioners, containing at least:
a. legal basis; b. description of duties, responsibilities, and authority;
c. meeting policies, including attendance policies and procedures for decision-making in meetings, and the preparation of meeting minutes; and
d. reporting and accountability.

CHAPTER VI
INTERNAL CONTROL

Article 34
Securities Companies are required to implement internal control of the Securities Company.

Article 35
(1) In implementing internal control as referred to in Article 34, Securities Companies are required to form functions:
a. risk management; and b. compliance and internal audit.
(2) In addition to meeting the provisions as referred to in paragraph (1), Securities Companies conducting business activities as Securities Trading Brokers that administer customer securities accounts are required to form and implement the functions:
a. marketing; b. bookkeeping;
c. custody;
d. information technology; and e. research (if necessary), as regulated in laws and regulations in the capital market sector governing internal control of Securities Companies conducting business activities as Securities Trading Brokers.

Article 36
(1) Employees executing each function as referred to in Article 35 are prohibited from holding concurrent positions to execute other functions unless otherwise regulated in laws and regulations. (2) Employees as referred to in paragraph (1) are required to execute their duties and responsibilities independently.

Article 37
(1) The execution of the risk management function as referred to in Article 35 paragraph (1) letter a includes at least:
a. the formulation of risk management policies; b. objective testing, evaluation, and recommendations for improvements regarding the implementation of the risk management system, at least 1 (one) time in 1 (one) year or at more frequent intervals in the event of changes in factors significantly affecting the business activities of the Securities Company; and
c. monitoring, identification, measurement, and follow-up regarding matters related to risk management requiring the attention of the Board of Directors.
(2) Risk management policies as referred to in paragraph (1) letter a contain at least:
a. comprehensive risk management strategy and framework; b. prudence principles;
c. provision of sufficient capital;
d. fulfillment of laws and regulations; e. early detection systems; f. risk identification and diversification; g. risk measurement, monitoring, and control; h. risk limits taken and risk tolerance regarding capital adequacy;
i. risk mitigation; and
j. transparency and a risk-aware culture.
(3) Securities Companies conducting business activities as Securities Trading Brokers that administer customer securities accounts, in addition to meeting the provisions as referred to in paragraph (1), are required to implement the risk management function as regulated in laws and regulations in the capital market sector governing internal control of Securities Companies conducting business activities as Securities Trading Brokers.

Article 38
(1) The execution of the compliance and internal audit function as referred to in Article 35 paragraph (1) letter b includes at least:
a. the formulation of compliance policies and internal audit policies; b. testing, evaluation, and recommendations regarding the suitability of policies, regulations, systems, and procedures owned by the Securities Company with laws and regulations, at least 1 (one) time in 1 (one) year or at more frequent intervals in the event of changes in factors significantly affecting the business activities of the Securities Company;
c. the formulation and implementation of adequate audit programs for all work units, taking into account the risk level of each work unit; and
d. monitoring, identification, measurement, and follow-up regarding matters related to compliance and internal audit requiring the attention of the Board of Directors. (2) Securities Companies conducting business activities as Securities Trading Brokers that administer customer securities accounts, in addition to meeting the provisions as referred to in paragraph (1), are required to implement the compliance function as regulated in laws and regulations in the capital market sector governing internal control of Securities Companies conducting business activities as Securities Trading Brokers.

Article 39
(1) Executors of the risk management function and the compliance and internal audit function are responsible to the Board of Directors.
(2) Reports on the execution of the risk management function and the compliance and internal audit function are submitted to the Board of Directors and copied to the Board of Commissioners.

CHAPTER VII
BUSINESS PLAN

Article 40
Securities Companies are required to have a realistic, measurable, and sustainable Business Plan.

Article 41
(1) The Business Plan as referred to in Article 40 is drafted by the Board of Directors and approved by the Board of Commissioners or the General Meeting of Shareholders as determined in the articles of association. (2) The Business Plan as referred to in Article 40 contains at least:
a. the determination of the Securities Company's targets to be achieved within a period of 1 (one) year; b. strategies to achieve the Securities Company's targets; and
c. 1 (one) year forward financial projections.
(3) The Business Plan as referred to in Article 40 is formulated taking into account:
a. the strategic plan of the Securities Company; b. internal and external factors that can affect the continuity of the business activities of the Securities Company;
c. prudence principles; and
d. the application of risk management.

Article 42
(1) The Board of Directors is responsible for the implementation of the Business Plan and the socialization of the Business Plan to all employees/staff of the Securities Company. (2) The Board of Commissioners is responsible for supervising the implementation of the Business Plan.

Article 43
(1) Securities Companies are required to submit the Business Plan as referred to in Article 40 to the Financial Services Authority once every 1 (one) year. (2) Securities Companies are required to submit the realization of the previous year's Business Plan to the Financial Services Authority. (3) The Financial Services Authority may request Securities Companies to make adjustments if the submitted Business Plan is deemed not to fully meet the regulations regarding the activities of the Securities Company. (4) Securities Companies are required to submit adjustments to the Business Plan as referred to in paragraph (3) to the Financial Services Authority at the latest 15 (fifteen) working days after the date of the letter from the Financial Services Authority. (5) Securities Companies may only make changes to the Business Plan once, at the latest on the last working day of June in the current year, unless otherwise determined upon request from the Financial Services Authority. (6) Changes to the Business Plan as referred to in paragraph (5) are required to be submitted to the Financial Services Authority at the latest 30 (thirty) working days before the implementation of the relevant Business Plan.

CHAPTER VIII
POLICY ON VIOLATION REPORTING SYSTEM AND POLICY ON CUSTOMER COMPLAINT SYSTEM

Article 44
(1) Securities Companies are required to have a violation reporting system policy.
(2) The violation reporting system policy as referred to in paragraph (1) contains at least:
a. the systematic process of violation reporting; b. types of violations that can be reported;
c. methods of submitting violation reports;
d. protection and confidentiality guarantees for reporters; e. handling of violation reports; f. the party managing the handling of violation reports; g. results of handling and follow-up of violation reports; and h. periodic evaluation by the Board of Directors and Board of Commissioners regarding the violation reporting system policy.

Article 45
(1) Securities Companies are required to have a customer complaint handling policy.
(2) The customer complaint handling policy as referred to in paragraph (1) contains at least:
a. the systematic process of complaints; b. the time limit for handling complaints;
c. complaint handling;
d. the work unit or party managing complaint handling; e. results of handling and follow-up of complaints; and f. periodic evaluation by the Board of Directors and Board of Commissioners regarding the customer complaint handling policy. (3) Securities Companies conducting business activities as Securities Trading Brokers that administer customer securities accounts, in addition to meeting the provisions as referred to in paragraph (2), are required to comply with the customer complaint handling policy as regulated in laws and regulations in the capital market sector governing internal control of Securities Companies conducting business activities as Securities Trading Brokers.

CHAPTER IX
WEBSITE

Article 46
(1) Securities Companies are required to have a Website.
(2) The Website as referred to in paragraph (1) must reflect the identity of the Securities Company and take into account laws and regulations.

Article 47
Information required to be included in the Website of a Securities Company as referred to in Article 46 includes at least:
a. general information; b. information for customers; and
c. Governance information.

Article 48
(1) General information as referred to in Article 47 letter a contains at least:
a. name, address, and contact of the head office, address and contact of offices other than the head office, and agents of the Securities Company (if any) that can be contacted; b. brief history of the Securities Company;
c. organizational structure of the Securities Company;
d. profiles of the Board of Directors, Board of Commissioners, committees, and/or supporting units (if any); e. information regarding the Board of Directors and employees who have licenses as Deputy Issuance Underwriters and/or Deputy Securities Trading Brokers; and f. business license number of the Securities Company. (2) Information for customers as referred to in Article 47 letter b contains at least:
a. periodic financial reports; b. resolutions of the General Meeting of Shareholders; and
c. customer complaint services and violation reporting.
(3) Governance information as referred to in Article 47 letter c contains at least:
a. work guidelines for the Board of Directors and Board of Commissioners; b. code of ethics;
c. functions and risk management policies; and
d. functions and compliance and internal audit policies.

CHAPTER X
REPORTING

Article 49
(1) Securities Companies are required to submit periodic reports to the Financial Services Authority as follows:
a. periodic financial reports; b. activity reports; and
c. reports from Public Accountants regarding net working capital adjusted annually.
(2) The provisions for submitting periodic reports as referred to in paragraph (1) refer to laws and regulations in the capital market sector governing the obligation to submit periodic reports by Securities Companies.

Article 50
(1) Securities Companies are required to compile a report on the implementation of Corporate Governance every year for the end position of December.
(2) The report on the implementation of Corporate Governance as referred to in paragraph (1) includes at least:
a. transparency;

disclosure of the form of implementation of Corporate Governance as referred to in Article 2 paragraph (3) letter a to letter g, letter i, letter j, and letter k;
share ownership of members of the Board of Directors and members of the Board of Commissioners as well as financial and/or family relationships between members of the Board of Directors and members of the Board of Commissioners with other members of the Board of Directors and/or shareholders of the Securities Company;
total remuneration and other facilities received by the Board of Directors and Board of Commissioners;
internal deviations that occurred and resolution efforts by the Securities Company;
types, quantities, and resolution efforts for legal issues, both civil and criminal, that have been submitted through legal processes (if any); and
conflicts of interest and/or transactions with Affiliated Parties;
b. the results of self-assessment regarding the implementation of Corporate Governance; and/or
c. action plans for Securities Companies that receive a composite rating of 4 or 5.
(3) The report on the implementation of Corporate Governance as referred to in paragraph (1) is presented comparatively with the previous year.
(4) Securities Companies are required to submit the report on the implementation of Corporate Governance as referred to in paragraph (2) to the Financial Services Authority once every 1 (one) year. (5) The report on the implementation of Corporate Governance in paragraph (4) is required to be submitted by Securities Companies at the latest on the 15th day of the second month of the following year. (6) In the event that the 15th day as referred to in paragraph (5) falls on a holiday, the report on the implementation of Corporate Governance is submitted at the latest on the next working day. (7) In the event that a Securities Company submits the report on the implementation of Corporate Governance beyond the time limit as referred to in paragraph (6), the calculation of the number of days of delay in submitting the report is calculated from the first day after the final submission deadline as referred to in paragraph (6). (8) The submission of the report on the implementation of Corporate Governance for the first time is not presented comparatively with the previous year.

Article 51
(1) The Financial Services Authority may request Securities Companies to revise the report on the implementation of Corporate Governance if, based on evaluations conducted by the Financial Services Authority, the report does not correspond to the actual condition of the Securities Company. (2) The revision of the report on the implementation of Corporate Governance as referred to in paragraph (1) is required to be submitted to the Financial Services Authority at the latest 15 (fifteen) working days since the receipt of the notification letter from the Financial Services Authority.

Article 52
(1) The Business Plan as referred to in Article 43 paragraph (1) is required to be submitted to the Financial Services Authority at the latest on the last working day of November. (2) The Business Plan realization report as referred to in Article 43 paragraph (2) is required to be submitted to the Financial Services Authority at the latest on February 15. (3) In the event that the 15th day as referred to in paragraph (2) falls on a holiday, the Business Plan realization report is submitted at the latest on the next working day. (4) In the event that a Securities Company submits the Business Plan realization report beyond the time limit as referred to in paragraph (3), the calculation of the number of days of delay in submitting the Business Plan realization report is calculated from the first day after the final submission deadline for the Business Plan realization report as referred to in paragraph (3). (5) The Business Plan realization report as referred to in paragraph (2) is presented comparatively with the Business Plan that has been submitted to the Financial Services Authority.

Article 53
(1) The Business Plan, Business Plan realization report, and Report on the implementation of Corporate Governance are required to be submitted to the Financial Services Authority in the form of printed documents and electronic documents. (2) In the event that the Financial Services Authority has provided an electronic reporting system, reporting as referred to in paragraph (1) is required to be submitted through that electronic reporting system. (3) In the event that reporting as referred to in paragraph (1) has been submitted through the electronic reporting system, the Financial Services Authority no longer requires the submission of reporting in the form of printed documents.

Article 54
(1) Securities Companies are required to conduct self-assessment regarding the implementation of Corporate Governance as referred to in Article 50 paragraph (2) letter b. (2) The results of the self-assessment of the implementation of Corporate Governance as referred to in paragraph (1) are an integral part of the report on the implementation of Corporate Governance as referred to in Article 50.

Article 55
Further provisions regarding the report on the implementation of Corporate Governance are regulated by a Circular Letter of the Financial Services Authority.

Article 56
In addition to meeting the reporting provisions as referred to in Article 49 to Article 55, Securities Companies are required to meet other reporting provisions in laws and regulations in the capital market sector.

CHAPTER XI
TRANSITIONAL PROVISIONS

Article 57
(1) In order to conduct assessments regarding the implementation of Corporate Governance, the Financial Services Authority conducts assessments or evaluations of the results of self-assessment regarding the implementation of Corporate Governance as referred to in Article 54 paragraph (1). (2) Based on the results of assessment or evaluation as referred to in paragraph (1), the Financial Services Authority may request Securities Companies to submit action plans containing improvement steps that must be executed by the Securities Company with specific time targets. (3) If necessary, the Financial Services Authority may request Securities Companies to make adjustments to the action plan as referred to in paragraph (2). (4) The Financial Services Authority may conduct evaluations of adjustments to the action plan as referred to in paragraph (3) and conduct special examinations of the results of improvements to the implementation of Corporate Governance that have been executed by the Securities Company.

CHAPTER XII
SANCTION PROVISIONS

Article 58
(1) Without prejudice to criminal provisions in the capital market sector, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties causing the violation, consisting of:
a. written warnings; b. fines, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business licenses; f. cancellation of approvals; and/or g. cancellation of registrations.
(2) Administrative sanctions as referred to in paragraph (1) letter b, letter c, letter d, letter e, letter f, or letter g may be imposed with or without being preceded by the imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of fines as referred to in paragraph (1) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (1) letter c, letter d, letter e, letter f, or letter g.

Article 59
In addition to administrative sanctions as referred to in Article 58 paragraph (1), the Financial Services Authority may take certain actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 60
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 58 paragraph (1) and certain actions as referred to in Article 59 to the public.

CHAPTER XIII
TRANSITIONAL PROVISIONS

Article 61
(1) Securities Companies are required to adjust to the provisions in this Financial Services Authority Regulation within a period of 1 (one) year since this Financial Services Authority Regulation takes effect. (2) The imposition of sanctions for violations of this Financial Services Authority Regulation begins to be applied 2 (two) years since this Financial Services Authority Regulation takes effect.

Article 62
(1) Securities Companies are required to submit their first Business Plan for the activity plan for the year 2018.
(2) The first Business Plan as referred to in paragraph (1) is required to be submitted to the Financial Services Authority at the latest on the last working day of November 2017.

Article 63
(1) Securities Companies are required to submit the report on the implementation of Corporate Governance as referred to in Article 50 paragraph (1) for the first time in the 2018 period. (2) The report on the implementation of Corporate Governance as referred to in paragraph (1) is submitted to the Financial Services Authority at the latest on February 15, 2019.

CHAPTER XIV
CLOSING PROVISIONS

Article 64
(1) Other laws and regulations related to the obligations of Securities Companies conducting business activities as Issuance Underwriters and Securities Trading Brokers remain in force as long as they do not conflict with the provisions in this Financial Services Authority Regulation. (2) In the event that there are other laws and regulations governing provisions regarding corporate governance guidelines for Securities Companies that...

This copy is consistent with the original
Deputy Director of Legal Directorate 1 as Acting Director of Legal Directorate 1 Legal Department signed Wiwit Puspasari is an Issuer or Public Company and/or Securities Company that is part of a financial conglomerate, which differs from the provisions in this Financial Services Authority Regulation, stricter regulations shall apply.
Article 65
This Financial Services Authority Regulation takes effect on the date of its promulgation.
To ensure that everyone knows it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia. Determined in Jakarta on 14 September 2017 CHAIRMAN OF THE COMMISSIONERS BOARD FINANCIAL SERVICES AUTHORITY, signed WIMBOH SANTOSO Promulgated in Jakarta on 26 September 2017 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, signed YASONNA H. LAOLY STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 211

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 57 /POJK.04/2017
ON
IMPLEMENTATION OF CORPORATE GOVERNANCE FOR SECURITIES COMPANIES CARRYING OUT BUSINESS ACTIVITIES AS UNDERWRITERS OF SECURITIES ISSUES AND SECURITIES BROKERS

I. GENERAL
With the development of the national economy, the capital market industry in Indonesia has become one of the industries with relatively rapid development. Securities Companies, as one of the players in the capital market industry, play a role in driving the development of trading, services, and capital market investment products. Thus, the implementation of Securities Company Corporate Governance can be used as one of the ways for Securities Companies to help companies improve performance and provide long-term benefits, while increasing competitiveness. Securities Company Corporate Governance, in this case, Securities Companies carrying out business activities as Underwriters of Securities Issues and Securities Brokers, is intended to meet the needs of Securities Companies to have a reference used in the implementation of good Corporate Governance. The implementation of Corporate Governance for Securities Companies is, in principle, already regulated in several regulations in the capital market sector as well as in the financial services sector. However, in order to improve the implementation of Securities Company Corporate Governance and considering the development of Corporate Governance implementation, both in the capital market industry, the financial services industry more broadly, and Corporate Governance in financial conglomerates, it is necessary to have regulations regarding the implementation of Corporate Governance for Securities Companies that are more detailed. These regulations cover Securities Company Corporate Governance provisions that have been regulated in several existing regulations and corporate governance best practices that are needed, which can be implemented by Securities Companies, specifically in this case, Underwriters of Securities Issues and Securities Brokers.

II. ARTICLE BY ARTICLE
Article 1
It is clear enough.
Article 2
It is clear enough.
Article 3
It is clear enough.
Article 4
It is clear enough.
Article 5
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.

Paragraph (5)
In practice, the electronic mail referred to is commonly called electronic mail (e-mail).
Paragraph (6)
It is clear enough.
Article 6
Paragraph (1)
Examples of meeting agenda materials include annual financial reports in the Annual General Meeting of Shareholders (RUPS).
Paragraph (2)
Copies of electronic documents as referred to in this paragraph can be delivered using among other digital media such as compact discs (CD), flash drives, or others. Paragraph (3) It is clear enough.
Article 7
It is clear enough.
Article 8
Paragraph (1)
The minutes of the RUPS referred to are made and signed by the meeting chairperson and at least 1 (one) shareholder appointed by and from the RUPS participants. The signature as referred to is not required if the RUPS minutes are made in the form of a notarial deed of RUPS minutes. Paragraph (2) It is clear enough. Paragraph (3) It is clear enough.
Article 9
Paragraph (1)
In practice, decision-making outside the RUPS referred to is commonly called circular resolution.
What is meant by "binding decision" is a decision that has the same legal force as a RUPS decision.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Article 10
Letter a
It is clear enough.
Letter b
What is meant by "condition of the Securities Company" includes, among other things, adaptation to the needs, size and complexity of the business, and the capability of the Securities Company. Letter c It is clear enough. Letter d It is clear enough.
Article 11
It is clear enough.
Article 12
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
What is meant by "committees and/or supporting units of the Board of Directors" includes among other things risk management committees or human resources committees.

Paragraph (6)
It is clear enough.
Article 13
It is clear enough.
Article 14
It is clear enough.
Article 15
What is meant by "strategic policy" is a Securities Company policy that can significantly affect the finances of the Securities Company and/or has a continuous impact on the budget, human resources, organizational structure, customers, and/or third parties.
Article 16
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
What is meant by "attendance of Board of Directors members in meetings" is physical attendance or through electronic media, such as teleconferencing or video conferencing. Paragraph (4) It is clear enough. Paragraph (5) It is clear enough.
Article 17
Paragraph (1)
It is clear enough.
Paragraph (2)
Other education and/or training can be obtained among other things through training, socialization, or seminars organized by competent parties.

Article 18
Paragraph (1)
Letter a
It is clear enough.
Letter b
What is meant by "condition of the Securities Company" includes among other things adaptation to the needs, size and complexity of the business, and the capability of the Securities Company. Letter c It is clear enough. Letter d It is clear enough. Paragraph (2) It is clear enough.
Article 19
Paragraph (1)
For example, if the Securities Company has only 1 (one) member of the Board of Commissioners, then the referred Board of Commissioners member is an Independent Commissioner. If the Securities Company has 2 (two) members of the Board of Commissioners, then 1 (one) of the referred Board of Commissioners members is an Independent Commissioner. Paragraph (2) For example, if the Securities Company has 4 (four) members of the Board of Commissioners, then at least 2 (two) of the referred Board of Commissioners members are Independent Commissioners.
Article 20
It is clear enough.
Article 21
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.

Paragraph (3)
What is meant by "oversight of Corporate Governance implementation" includes among other things:
a. oversight of the execution of duties and responsibilities of the Board of Directors regarding Corporate Governance implementation; b. providing advice to the Board of Directors regarding Corporate Governance implementation; and
c. evaluating company policies related to Corporate Governance, such as evaluation of the Board of Directors and Board of Commissioners working guidelines.
Paragraph (4)
It is clear enough.
Article 22
It is clear enough.
Article 23
Paragraph (1)
The audit function regulated in these provisions is the audit function owned by the Board of Commissioners.
Paragraph (2)
The results of the audit function review carried out by the Independent Commissioner become recommendations for the Board of Commissioners.
Paragraph (3)
It is clear enough.
Article 24
It is clear enough.
Article 25
Paragraph (1)
What is meant by "other committees" includes among other things the Corporate Governance committee, risk management committee, and/or nomination and remuneration committee. Paragraph (2) It is clear enough.

Article 26
It is clear enough.
Article 27
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
What is meant by "attendance of Board of Commissioners members in meetings" is physical attendance or through electronic media, such as teleconferencing or video conferencing. Paragraph (4) It is clear enough. Paragraph (5) It is clear enough. Paragraph (6) It is clear enough.
Article 28
Paragraph (1)
It is clear enough.
Paragraph (2)
Other education and/or training can be obtained among other things through training, socialization, or seminars organized by competent parties.
Article 29
Letter a
It is clear enough.
Letter b
What is meant by "legitimate income" is remuneration determined in the RUPS.

Article 30
Paragraph (1)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
It is clear enough.
Letter d
What is meant by "allowances" includes facilities provided to the Board of Directors and Board of Commissioners to support the execution of their duties and responsibilities. Paragraph (2) It is clear enough.
Article 31
It is clear enough.
Article 32
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
What is meant by "conflict of interest" is a difference in economic interests between the Securities Company and the personal economic interests of Controlling Shareholders, Board of Directors members, Board of Commissioners members, employees, and/or related parties with the Securities Company. Conflict of interest policies include among other things:

definition of conflict of interest;
identification of matters constituting a conflict of interest, including types of conflict of interest transactions between the Securities Company and the personal interests of Controlling Shareholders, Board of Directors members, Board of Commissioners members, employees, and/or related parties with the Securities Company;
handling, mitigation, and/or management of conflict of interest, including among other things:
a) professional attitude of the Board of Directors, Board of Commissioners, employees, and/or committees/functions owned by the Securities Company when there is a conflict of interest with the Securities Company, for example, prohibition on conducting transactions beforehand on a specific Security based on customer information that will conduct transactions in large volume over Securities estimated to affect market prices, with the aim of gaining profit or reducing losses; b) procedures or mechanisms for decision-making in the event of a conflict of interest and written reporting/disclosure if having or potentially having a conflict of interest, for example, prohibition for Board of Directors and/or Board of Commissioners members to vote in meetings if they have a conflict of interest; and
administration and documentation of conflict of interest.
Letter d
It is clear enough.
Letter e
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
What is meant by "violation reporting system" is a violation reporting policy that meets the provisions regulated in this Financial Services Authority Regulation.
Article 33
Paragraph (1)
Guidelines can be part of the code of ethics or separate from the code of ethics.
Paragraph (2)
It is clear enough.
Article 34
It is clear enough.
Article 35
Paragraph (1)
Letter a
It is clear enough.
Letter b
The compliance and internal audit functions can be carried out separately according to the needs of the Securities Company.
Paragraph (2)
It is clear enough.
Article 36
It is clear enough.
Article 37
Paragraph (1)
Letter a
In practice, the referred risk management policy is known as the risk management guideline.
Letter b
It is clear enough.
Letter c
It is clear enough.

Paragraph (2)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
It is clear enough.
Letter d
It is clear enough.
Letter e
In practice, the referred early detection system is commonly called an early warning system.
Letter f
It is clear enough.
Letter g
It is clear enough.
Letter h
In practice, the referred risk limits taken are commonly called risk appetite, and risk tolerance is commonly called risk tolerance.
Letter i
It is clear enough.
Letter j
It is clear enough.
Paragraph (3)
It is clear enough.
Article 38
Paragraph (1)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
The preparation and implementation of adequate audit programs among other things meet independence, objectivity, and do not limit the scope and coverage of internal audit. Letter d It is clear enough. Paragraph (2) It is clear enough.
Article 39
It is clear enough.
Article 40
It is clear enough.
Article 41
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
Letter a
It is clear enough.
Letter b
Internal factors can be the strengths and weaknesses of the Securities Company, while external factors can be opportunities and challenges.
Letter c
It is clear enough.
Letter d
It is clear enough.
Article 42
It is clear enough.
Article 43
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.

Paragraph (3)
Provisions related to Securities Company activities include among other things Regulations related to licensing, internal control, and capital of the Securities Company. Paragraph (4) It is clear enough. Paragraph (5) It is clear enough. Paragraph (6) It is clear enough.
Article 44
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
It is clear enough.
Letter d
It is clear enough.
Letter e
It is clear enough.
Letter f
The party managing the handling of violation reports can be carried out by the party performing the compliance function.
Letter g
It is clear enough.
Letter h
It is clear enough.

Article 45
Paragraph (1)
Customer complaint handling policies are formulated by referring to consumer complaint handling provisions as regulated in Financial Services Authority Regulations regarding consumer protection in the financial services sector. Paragraph (2) Customer complaint handling policies must at least refer to Financial Services Authority Regulations regarding consumer protection in the financial services sector. Paragraph (3) It is clear enough.
Article 46
Paragraph (1)
It is clear enough.
Paragraph (2)
The identity of the Securities Company must at least cover the name of the Securities Company, the type of business activities carried out by the Securities Company, and the services provided by the Securities Company.
Article 47
It is clear enough.
Article 48
Paragraph (1)
Letter a
It is clear enough.
Letter b
The brief history of the Securities Company includes among other things the history of establishment, vision and mission, and type of business activities according to the latest articles of association. Letter c The organizational structure is presented in the form of a chart at least up to 1 (one) level below the Board of Directors and Board of Commissioners, including committees (if any), accompanied by names and positions. Letter d It is clear enough. Letter e It is clear enough. Letter f It is clear enough. Paragraph (2) It is clear enough. Paragraph (3) It is clear enough.
Article 49
It is clear enough.
Article 50
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
It is clear enough.
Letter b
In practice, the referred self-assessment is commonly called self assessment.
Letter c
What is meant by "composite ranking" is the final ranking of the self-assessment results.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.

Paragraph (7)
It is clear enough.
Paragraph (8)
It is clear enough.
Article 51
It is clear enough.
Article 52
It is clear enough.
Article 53
Paragraph (1)
What is meant by "electronic documents" includes among other things the submission of Corporate Governance implementation reports via electronic mail (email). Paragraph (2) It is clear enough. Paragraph (3) It is clear enough.
Article 54
It is clear enough.
Article 55
It is clear enough.
Article 56
What is meant by other reporting provisions includes among other things reporting related to:
a. opening of activities carried out at locations other than the headquarters as referred to in provisions of legislation in the capital market sector regulating regarding Securities Company activities at various locations; b. customer complaints and follow-up on customer complaint service and resolution as regulated in Financial Services Authority Regulations regarding consumer protection in the financial services sector; and
c. name changes as regulated in Financial Services Authority Regulations regarding licensing of Securities Companies carrying out business activities as Underwriters of Securities Issues and Securities Brokers.
Article 57
It is clear enough.
Article 58
It is clear enough.
Article 59
It is clear enough.
Article 60
It is clear enough.
Article 61
It is clear enough.
Article 62
It is clear enough.
Article 63
It is clear enough.
Article 64
It is clear enough.
Article 65
It is clear enough.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6126

Implementation of Good Corporate Governance for Securities Companies Acting as Underwriters and Securities Brokers

Lineage: Amended

Timeline