FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 19 /POJK.04/2015

CONCERNING

THE ISSUANCE AND REQUIREMENTS FOR SHARIA MUTUAL FUNDS

BY THE GRACE OF GOD THE ALMIGHTY,

THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering: that in order to encourage the development of the Sharia Capital Market industry in Indonesia, it is necessary to perfect regulations regarding the Issuance of Sharia Mutual Funds by establishing a Financial Services Authority Regulation concerning the Issuance and Requirements for Sharia Mutual Funds;

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

DECIDING:

To establish: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE ISSUANCE AND REQUIREMENTS FOR SHARIA MUTUAL FUNDS.

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY

CHAPTER I

GENERAL PROVISIONS

Article 1

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

1. Sharia Mutual Fund is a Mutual Fund as referred to in the Capital Market Law and its implementing regulations, the management of which does not conflict with Sharia Principles in the Capital Market.
2. Sharia Fixed-Income Securities are Sharia Securities that provide fixed income with a maturity of 1 (one) year or more, including convertible Sharia Fixed-Income Securities.
3. Sukuk-Based Sharia Mutual Fund is a Sharia Mutual Fund that invests in one or more Sukuk, with a composition of at least 85% (eighty-five percent) of the Net Asset Value of the Sharia Mutual Fund invested in Sukuk offered in Indonesia through a Public Offering, Government Sharia Securities, and/or Sharia Commercial Paper with a maturity of 1 (one) year or more, classified as investment grade, and placed in Collective Custody at the Securities Custody and Clearing Institution by the issuer of the Sharia Commercial Paper.
4. Foreign Sharia Securities-Based Sharia Mutual Fund is a Sharia Mutual Fund that invests at least 51% (fifty-one percent) of the Net Asset Value of the Sharia Mutual Fund in Foreign Sharia Securities listed in the Sharia Securities List issued by the Issuer of the Sharia Securities List.
5. Sharia Securities List is the Sharia Securities List as referred to in legislation in the Capital Market sector regulating criteria and issuance of the Sharia Securities List.
6. Issuer of the Sharia Securities List is the Issuer of the Sharia Securities List as referred to in legislation in the Capital Market sector regulating criteria and issuance of the Sharia Securities List.
7. Foreign Sharia Securities are Sharia Securities offered through a Public Offering and/or traded on a foreign Stock Exchange and listed in the Sharia Securities List issued by the Issuer of the Sharia Securities List.
8. Sharia Principles in the Capital Market are Islamic legal principles in Sharia Activities in the Capital Market based on fatwas of the National Sharia Council - Indonesian Ulema Council, provided that such fatwas do not conflict with Financial Services Authority Regulations concerning the Implementation of Sharia Principles in the Capital Market and/or other Financial Services Authority Regulations based on fatwas of the National Sharia Council - Indonesian Ulema Council.
9. Capital Market Sharia Expert, hereinafter abbreviated as ASPM, is:
   a. an individual who has knowledge and experience in the Sharia field; or b. a business entity whose board members and employees have knowledge and experience in the Sharia field, which provides advice and/or supervises the implementation of Sharia Principles in the Capital Market in the business activities of companies and/or provides statements of Sharia compliance for Sharia products or services in the Capital Market.
10. Sharia Contract is a written agreement or contract between parties containing the rights and obligations of each party that does not conflict with Sharia Principles in the Capital Market.
11. Sharia Securities are Securities as referred to in the Capital Market Law and its implementing regulations, whose contract, management method, business activities, and/or assets underlying the contract, management method, business activities, and/or assets related to said Securities and their issuer do not conflict with Sharia Principles in the Capital Market.

Article 2

Foreign Sharia Securities include:
a. Sharia Stocks traded on a foreign Stock Exchange and listed in the Sharia Securities List issued by the Issuer of the Sharia Securities List; and b. Sukuk offered through a public offering abroad that are included in the Sharia Securities List issued by the Issuer of the Sharia Securities List.

Article 3

Sharia Mutual Funds can be:
a. Sharia Money Market Mutual Fund; b. Sharia Fixed-Income Mutual Fund;
c. Sharia Equity Mutual Fund;
d. Sharia Mixed Mutual Fund; e. Sharia Protected Mutual Fund; f. Sharia Index Mutual Fund; g. Foreign Sharia Securities-Based Sharia Mutual Fund; h. Sukuk-Based Sharia Mutual Fund;
i. Sharia Mutual Fund in the form of a Collective Investment Contract whose Participation Units are traded on the Exchange; and
j. Sharia Mutual Fund in the form of a Limited Participation Collective Investment Contract.

Article 4

Parties conducting a Public Offering of Sharia Mutual Funds must follow legislation in the Capital Market sector regulating General Provisions on the Submission of Registration Statements and legislation in the Capital Market sector regulating Mutual Funds, unless otherwise and specifically regulated in this Financial Services Authority Regulation.

Article 5

Any Party issuing shares and/or Participation Units of Sharia Mutual Funds must comply with Sharia Principles in the Capital Market as regulated in the Financial Services Authority Regulation concerning the Implementation of Sharia Principles in the Capital Market, this Financial Services Authority Regulation, and legislation in the Capital Market sector regulating Mutual Funds.

Article 6

A Sharia Mutual Fund meets Sharia Principles in the Capital Market if its contract, management method, and portfolio do not conflict with Sharia Principles in the Capital Market as regulated in the Financial Services Authority Regulation concerning the Implementation of Sharia Principles in the Capital Market.

Article 7

(1) Investment Managers managing Sharia Mutual Funds must have a Sharia Supervisory Board appointed by the Board of Directors.
(2) The issuance of Sharia Mutual Funds must obtain a statement of Sharia compliance issued by the Sharia Supervisory Board of the Investment Manager or the Sharia Expert Team.
(3) Members of the Sharia Supervisory Board and the Sharia Expert Team as referred to in paragraph (2) must hold an ASPM license from the Financial Services Authority as regulated in the Financial Services Authority Regulation concerning Capital Market Sharia Experts. (4) The Sharia Supervisory Board as referred to in paragraph (1) and paragraph (2) is responsible for supervising Sharia Mutual Funds to ensure continuous compliance with Sharia Principles in the Capital Market. (5) Costs arising from the implementation of the duties of the Sharia Supervisory Board and the Sharia Expert Team as referred to in paragraph (2) are borne by the Investment Manager.

Article 8

(1) The Sharia Supervisory Board as referred to in Article 7 paragraph (4) must compile an annual supervision report on compliance with Sharia Principles in the Capital Market for the supervised Sharia Mutual Funds.
(2) The report as referred to in paragraph (1) must be submitted by the Sharia Supervisory Board to the Investment Manager managing the Sharia Mutual Fund.
(3) The report as referred to in paragraph (2) must contain at least:
a. the recipient; b. the report date;
c. a statement that the compiled report complies with this Financial Services Authority Regulation;
d. a statement regarding the time frame and scope of supervision conducted by the Sharia Supervisory Board; e. the opinion of the Sharia Supervisory Board on the supervision conducted as referred to in letter d; and f. the signature, name, and position of the members of the Sharia Supervisory Board, and their ASPM license number. (4) The annual supervision report as referred to in paragraph (1) must be submitted by the Investment Manager managing the Sharia Mutual Fund to the Financial Services Authority, with the submission deadline coinciding with the submission of the annual financial report of the Mutual Fund.

CHAPTER II

ISSUANCE OF SHARES OF SHARIA MUTUAL FUNDS IN THE FORM OF A CORPORATION

Article 9

Issuers conducting a Public Offering of shares of Sharia Mutual Funds in the form of a Corporation must follow legislation in the Capital Market sector regulating General Provisions on the Submission of Registration Statements, legislation in the Capital Market sector regulating Registration Statements for Public Offerings of Mutual Funds in the form of a Corporation, and other legislation in the Capital Market sector regulating Mutual Funds in the form of a Corporation, unless otherwise and specifically regulated in this Financial Services Authority Regulation.

Article 10

The Articles of Association of Sharia Mutual Funds in the form of a Corporation must contain provisions regarding business activities and the method of conducting business based on Sharia Principles in the Capital Market.

Article 11

(1) The Management Contract for Sharia Mutual Funds in the form of a Corporation must comply with legislation in the Capital Market sector regulating guidelines for Management Contracts for Mutual Funds in the form of a Corporation, unless otherwise and specifically regulated in this Financial Services Authority Regulation. (2) The Wealth Storage Contract for Sharia Mutual Funds in the form of a Corporation must comply with legislation in the Capital Market sector regulating guidelines for Wealth Storage Contracts for Mutual Funds in the form of a Corporation, unless otherwise and specifically regulated in this Financial Services Authority Regulation. (3) The Management Contract for Sharia Mutual Funds in the form of a Corporation as referred to in paragraph (1) must include provisions regarding:
a. the Investment Manager acting as an agent (wakilin) on behalf of the Board of Directors of the Sharia Mutual Fund in the form of a Corporation as the principal (muwakil), with authority to manage the Sharia Mutual Fund in the form of a Corporation; b. the contract, management method, and portfolio of the Sharia Mutual Fund in the form of a Corporation do not conflict with Sharia Principles in the Capital Market;
c. members of the Sharia Supervisory Board, along with their duties and responsibilities;
d. the mechanism for cleansing the wealth of the Sharia Mutual Fund in the form of a Corporation from elements conflicting with Sharia Principles in the Capital Market; e. the word "Sharia" in the name of the Sharia Mutual Fund in the form of a Corporation; and f. the managed funds of the Sharia Mutual Fund in the form of a Corporation can only be invested in:

1. Stocks offered through a Public Offering and traded on the Stock Exchange in Indonesia and listed in the Sharia Securities List established by the Financial Services Authority as referred to in legislation in the Capital Market sector regulating criteria and issuance of the Sharia Securities List;
2. Sharia Rights to Prior Subscription and Sharia Warrants offered through a Public Offering and/or traded on the Stock Exchange in Indonesia;
3. Sukuk offered in Indonesia through a Public Offering;
4. Stocks traded on a foreign Stock Exchange and listed in the Sharia Securities List issued by the Issuer of the Sharia Securities List;
5. Sukuk offered through a Public Offering and/or traded on a foreign Stock Exchange, included in the Sharia Securities List issued by the Issuer of the Sharia Securities List;
6. Domestic Sharia Asset-Backed Securities that have received a rating from a Securities Rating Company that has obtained a business license from the Financial Services Authority;
7. Domestic Sharia Commercial Paper that has received a rating from a Securities Rating Company that has obtained a business license from the Financial Services Authority;
8. Sharia Securities issued by an international institution where the Government of Indonesia is a member; and/or
9. Domestic Sharia Money Market Instruments with a maturity of less than 1 (one) year, in either Rupiah denomination or other currency denominations.
   (4) The Wealth Storage Contract for Mutual Funds in the form of a Corporation as referred to in paragraph (2) must include provisions regarding:
   a. the Custodian Bank acting as an agent (wakilin) on behalf of the Board of Directors of the Sharia Mutual Fund in the form of a Corporation as the principal (muwakil), with authority to execute the Collective Custody of the wealth of the Sharia Mutual Fund in the form of a Corporation; b. members of the Sharia Supervisory Board of the Custodian Bank, or Directors of the Custodian Bank, or persons responsible for activities mandated by the Board of Directors of the Custodian Bank who have adequate knowledge and/or experience in Sharia finance, along with their duties and responsibilities;
   c. the rights and obligations of the Sharia Mutual Fund in the form of a Corporation and the Custodian Bank if the managed funds and/or assets of the Mutual Fund in the form of a Corporation conflict with Sharia Principles in the Capital Market, legislation in the Capital Market sector regulating Mutual Funds, and/or the Management Contract between the Sharia Mutual Fund in the form of a Corporation and the Investment Manager, including regarding the mechanism for cleansing the wealth of the Sharia Mutual Fund in the form of a Corporation from elements conflicting with Sharia Principles in the Capital Market; and
   d. the word "Sharia" in the name of the Sharia Mutual Fund in the form of a Corporation.
   (5) Provisions that must be included in the Management Contract and Wealth Storage Contract of Sharia Mutual Funds in the form of a Corporation as referred to in paragraph (3) and paragraph (4) must be included as additional information in the Prospectus of the Sharia Mutual Fund in the form of a Corporation.

Article 12

Sharia Mutual Funds in the form of a Corporation may invest in Sharia Securities and/or Sharia Money Market Instruments issued by 1 (one) Party at most 20% (twenty percent) of the Net Asset Value of the Sharia Mutual Fund in the form of a Corporation at any time.

Article 13

The provisions as referred to in Article 12 do not apply to Sharia Securities in the form of:
a. Sharia Bank Indonesia Certificates; b. Sharia Securities issued by the Government of the Republic of Indonesia; and/or
c. Sharia Securities issued by an international financial institution where the Government of the Republic of Indonesia is a member.

CHAPTER III

ISSUANCE OF PARTICIPATION UNITS OF SHARIA MUTUAL FUNDS IN THE FORM OF A COLLECTIVE INVESTMENT CONTRACT

Article 14

Parties conducting a Public Offering of Participation Units of Sharia Mutual Funds in the form of a Collective Investment Contract must follow legislation in the Capital Market sector regulating General Provisions on the Submission of Registration Statements, legislation in the Capital Market sector regulating Registration Statements for Public Offerings of Mutual Funds in the form of a Collective Investment Contract, and other legislation in the Capital Market sector regulating Mutual Funds in the form of a Collective Investment Contract, unless otherwise and specifically regulated in this Financial Services Authority Regulation.

Article 15

(1) The Collective Investment Contract of Sharia Mutual Funds in the form of a Collective Investment Contract must comply with legislation in the Capital Market sector regulating guidelines for Mutual Fund Contracts in the form of a Collective Investment Contract, unless otherwise and specifically regulated in this Financial Services Authority Regulation. (2) The management of Sharia Mutual Funds in the form of a Collective Investment Contract must comply with legislation in the Capital Market sector regulating guidelines for the management of Mutual Funds in the form of a Collective Investment Contract, unless otherwise and specifically regulated in this Financial Services Authority Regulation. (3) The Collective Investment Contract of Sharia Mutual Funds in the form of a Collective Investment Contract must state:
a. the Investment Manager and Custodian Bank act as agents (wakilin) on behalf of the Participation Unit holders as principals (muwakil), where the Investment Manager is given authority to manage the collective investment portfolio and the Custodian Bank is given authority to execute Collective Custody; b. the contract, management method, and portfolio of the Sharia Mutual Fund in the form of a Collective Investment Contract do not conflict with Sharia Principles in the Capital Market;
c. members of the Sharia Supervisory Board of the Investment Manager;
d. members of the Sharia Supervisory Board, members of the board of directors, or persons responsible for activities mandated by the board of directors, who have adequate knowledge and/or experience in Sharia finance, along with their duties and responsibilities, for the Custodian Bank; e. the mechanism for cleansing the wealth of the Sharia Mutual Fund in the form of a Collective Investment Contract from elements conflicting with Sharia Principles in the Capital Market; f. the word "Sharia" in the name of the issued Sharia Mutual Fund in the form of a Collective Investment Contract; and g. the managed funds of the Sharia Mutual Fund in the form of a Collective Investment Contract can only be invested in:

1. Stocks offered through a Public Offering and traded on the Stock Exchange in Indonesia and listed in the Sharia Securities List established by the Financial Services Authority;
2. Sharia Rights to Prior Subscription and Sharia Warrants offered through a Public Offering and/or traded on the Stock Exchange in Indonesia;
3. Sukuk offered in Indonesia through a Public Offering;
4. Stocks traded on a foreign Stock Exchange and listed in the Sharia Securities List issued by the Issuer of the Sharia Securities List;
5. Sukuk offered through a Public Offering and/or traded on a foreign Stock Exchange, included in the Sharia Securities List issued by the Issuer of the Sharia Securities List;
6. Domestic Sharia Asset-Backed Securities that have received a rating from a Securities Rating Company that has obtained a business license from the Financial Services Authority;
7. Domestic Sharia Commercial Paper that has received a rating from a Securities Rating Company that has obtained a business license from the Financial Services Authority;
8. Sharia Securities issued by an international institution where the Government of the Republic of Indonesia is a member; and/or
9. Domestic Sharia Money Market Instruments with a maturity of less than 1 (one) year, in either Rupiah denomination or other currency denominations.
   (4) Provisions that must be stated in the Collective Investment Contract of Sharia Mutual Funds in the form of a Collective Investment Contract as referred to in paragraph (3) must be included as additional information in the Prospectus of the Sharia Mutual Fund in the form of a Collective Investment Contract.

Article 16

Sharia Mutual Funds in the form of a Collective Investment Contract may invest in Sharia Securities and/or Sharia Money Market Instruments issued by 1 (one) Party at most 20% (twenty percent) of the Net Asset Value of the Sharia Mutual Fund in the form of a Collective Investment Contract at any time.

Article 17

The provisions as referred to in Article 16 do not apply to Sharia Securities in the form of:
a. Sharia Bank Indonesia Certificates; b. Sharia Securities issued by the Government of the Republic of Indonesia; and/or
c. Sharia Securities issued by an international financial institution where the Government of the Republic of Indonesia is a member.

CHAPTER IV

SHARIA MONEY MARKET MUTUAL FUNDS, SHARIA FIXED-INCOME MUTUAL FUNDS, SHARIA EQUITY MUTUAL FUNDS, AND SHARIA MIXED MUTUAL FUNDS

Article 18

Parties conducting a Public Offering of Sharia Money Market Mutual Funds, Sharia Fixed-Income Mutual Funds, Sharia Equity Mutual Funds, and Sharia Mixed Mutual Funds must follow legislation in the Capital Market sector regulating guidelines for the daily announcement of the Net Asset Value of Open-End Mutual Funds, and other legislation in the Capital Market sector regulating related Mutual Funds, unless otherwise and specifically regulated in this Financial Services Authority Regulation.

Article 19

Investment Managers managing Sharia Money Market Mutual Funds must invest in:
a. domestic Sharia Money Market Instruments, in either Rupiah denomination or other currency denominations; and/or b. Sharia Fixed-Income Securities, which:

1. are issued with a term of not more than 1 (one) year; and/or
2. have a remaining maturity of not more than 1 (one) year.

Article 20

Investment Managers managing Sharia Fixed-Income Mutual Funds must invest at least 80% (eighty percent) of the Net Asset Value in the form of Sharia Fixed-Income Securities.

Article 21

Investment Managers managing Sharia Equity Mutual Funds must invest at least 80% (eighty percent) of the Net Asset Value in the form of Sharia Equity Securities.

Article 22

Investment Managers managing Sharia Mixed Mutual Funds may only invest in Sharia Fixed-Income Securities, Sharia Equity Securities, and/or domestic Money Market Instruments that comply with Sharia Principles in the Capital Market, with the provisions:
a. investment in any one of these investment instruments is at most 79% (seventy-nine percent) of the Net Asset Value; and b. the portfolio of the Sharia Mutual Fund must contain Sharia Equity Securities and Sharia Fixed-Income Securities.

CHAPTER V

SHARIA PROTECTED MUTUAL FUNDS AND SHARIA INDEX MUTUAL FUNDS

First Section

Sharia Protected Mutual Funds

Article 23

Parties conducting a Public Offering of Sharia Protected Mutual Funds must follow legislation in the Capital Market sector regulating Guidelines for the Management of Protected Mutual Funds, Mutual Funds with Guarantees, and Index Mutual Funds, and other legislation in the Capital Market sector regulating related Mutual Funds, unless otherwise and specifically regulated in this Financial Services Authority Regulation.

Article 24

The offering period and the number of shares or Participation Units offered in the Public Offering of Sharia Protected Mutual Funds are limited and not continuous.

Article 25

The Investment Manager of Sharia Protected Mutual Funds must provide additional information in the Prospectus, including regarding investment policy consisting of:
a. the percentage of the Net Asset Value of the Sharia Protected Mutual Fund to be invested in Sharia Fixed-Income Securities, Sharia Money Market Instruments, and other Sharia Securities; b. the type of Sharia Securities Portfolio that serves as the protection basis, namely by investing in Sharia Fixed-Income Securities that fall into the investment grade category, so that the value of the Sharia Fixed-Income Securities at maturity can at least cover the amount of value protected; and

---

c. criteria for selecting Sharia Securities and/or Sharia money market instruments.

Article 26
The portfolio of Protected Sharia Mutual Funds must have the following composition:
a. at least 70% (seventy percent) of the Net Asset Value of the Sharia Mutual Fund must be invested in:

1. Fixed-Income Sharia Securities issued, offered, and/or traded in Indonesia based on Indonesian legislation; and/or
2. Fixed-Income Sharia Securities traded abroad, but issued by:
   a) The Government of the Republic of Indonesia; b) Indonesian legal entities that are Issuers and/or Public Companies as referred to in the Capital Market Law; c) Foreign legal entities whose majority or entire shares are directly or indirectly owned by the Issuer or Public Company referred to in letter b), and such foreign legal entities are specifically established to raise funds from abroad for the benefit of the aforementioned Issuer or Public Company; and/or d) Foreign legal entities whose majority or entire shares are directly or indirectly owned by State-Owned Enterprises. b. at most 30% (thirty percent) of the Net Asset Value of the Sharia Mutual Fund is invested in:
3. Sharia stocks traded on foreign stock exchanges that are included in the Sharia Securities List issued by the Issuer of the Sharia Securities List; and/or
4. Sukuk offered through a Public Offering and/or traded on foreign stock exchanges that are included in the Sharia Securities List issued by the Issuer of the Sharia Securities List, the information of which can be accessed from Indonesia through mass media or Websites.

Part Two
Index Sharia Mutual Funds

Article 27
Parties conducting a Public Offering of Index Sharia Mutual Funds must follow capital market legislation regulating the Guidelines for the Management of Protected Mutual Funds, Mutual Funds with Guarantees, and Index Mutual Funds, as well as other related mutual fund regulations in the capital market sector, unless otherwise regulated and specifically arranged in this Financial Services Authority Regulation.

Article 28
The Public Offering of shares or Participation Units of Index Sharia Mutual Funds must be continuous or limited, both in the offering period and the number of shares or Participation Units offered.

Article 29
In the event an Investment Manager intends to issue an Index Sharia Mutual Fund, then:
a. The Investment Manager must provide additional information in the Prospectus regarding the following investment regulations:

1. at least 80% (eighty percent) of the Net Asset Value of the Index Sharia Mutual Fund must be invested in Sharia Securities that are part of the collection of Sharia Securities existing in the index;
2. investment in Sharia Securities existing in the index as referred to in item 1 must be at least 80% (eighty percent) of the total Sharia Securities existing in the index;
3. the weighting of each Sharia Security in the Index Sharia Mutual Fund must be at least 80% (eighty percent) and at most 120% (one hundred twenty percent) of the weighting of each Sharia Security in the reference index; and
4. the tracking error level of the Index Sharia Mutual Fund's performance against the performance of the reference index.
   b. Index Sharia Mutual Funds must use an index based on Sharia Securities that is available in mass media or accessible via Websites.
   c. The Financial Services Authority has the authority to reject Sharia Securities indices intended as the investment target for Index Sharia Mutual Funds, accompanied by reasons for rejection.

CHAPTER VI
SHARIA MUTUAL FUNDS BASED ON FOREIGN SHARIA SECURITIES

Article 30
Parties conducting a Public Offering of Sharia Mutual Funds Based on Foreign Sharia Securities must follow capital market legislation regulating the Guidelines for the Management of Mutual Funds in the form of Corporations, and capital market legislation regulating the Guidelines for the Management of Mutual Funds in the form of Collective Investment Contracts, as well as other related mutual fund regulations in the capital market sector, unless otherwise regulated and specifically arranged in this Financial Services Authority Regulation.

Article 31
Investment Managers managing Sharia Mutual Funds Based on Foreign Sharia Securities must determine portfolio composition with the following regulations:
a. at least 51% (fifty-one percent) of the Net Asset Value of Sharia Mutual Funds Based on Foreign Sharia Securities must be invested in Foreign Sharia Securities listed in the Sharia Securities List issued by the Issuer of the Sharia Securities List; and b. at most 49% (forty-nine percent) of the Net Asset Value of Sharia Mutual Funds Based on Foreign Sharia Securities is invested in domestic Sharia Securities.

Article 32
Sharia Mutual Funds Based on Foreign Sharia Securities may only invest in Foreign Sharia Securities issued by issuers whose country has become a member of the International Organization of Securities Commissions (IOSCO) and has fully signed the Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (IOSCO MMOU).

Article 33
Investment Managers must ensure that investors in Sharia Mutual Funds Based on Foreign Sharia Securities understand and comprehend the product structure as well as investment risks in the Participation Units of Sharia Mutual Funds Based on Foreign Sharia Securities, including exchange rate risk, high Net Asset Value fluctuation risk, and the risk of loss of investment principal.

Article 34
The initial investment value for the purchase of Sharia Mutual Funds Based on Foreign Sharia Securities must be at least US$10,000 (ten thousand United States dollars) or its equivalent value.

CHAPTER VII
SHARIA MUTUAL FUNDS BASED ON SUKUK

Article 35
Parties conducting a Public Offering of Sharia Mutual Funds Based on Sukuk must follow capital market legislation regulating the Guidelines for the Management of Mutual Funds in the form of Corporations, and capital market legislation regulating the Guidelines for the Management of Mutual Funds in the form of Collective Investment Contracts, as well as other related mutual fund regulations in the capital market sector, unless otherwise regulated and specifically arranged in this Financial Services Authority Regulation.

Article 36
(1) The offering period or the number of shares or Participation Units of Sharia Mutual Funds Based on Sukuk offered may be continuous or limited.
(2) The nature of the offering period or the number of shares or Participation Units of Sharia Mutual Funds Based on Sukuk offered as referred to in paragraph (1) must be included in the Sharia Mutual Fund Based on Sukuk contract.

Article 37
Investment Managers managing Sharia Mutual Funds Based on Sukuk must determine portfolio composition with the regulation that at least 85% (eighty-five percent) of the Net Asset Value of the Sharia Mutual Fund is invested in:
a. Sukuk offered in Indonesia through a Public Offering; b. Sharia Government Securities; and/or
c. Sharia commercial paper with a maturity of 1 (one) year or more, classified as investment grade, and placed in Collective Custody at the Custody and Settlement Institution by the issuer of the Sharia commercial paper.

Article 38
Sharia commercial paper as referred to in Article 37 letter c consists of securities issued by:
a. State-Owned Enterprises; b. Indonesian legal entities whose majority or entire shares are directly owned by State-Owned Enterprises;
c. Indonesian legal entities that are Issuers and/or Public Companies based on legislation;
d. Indonesian legal entities whose majority or entire shares are directly owned by Issuers and/or Public Companies; or e. Indonesian legal entities that are the parent and sponsor of Micro, Small, and Medium Enterprises or Baitul Maal Wa Tamwil with the following regulations:

1. have experience and can prove to have conducted sponsorship of Micro, Small, and Medium Enterprises or Baitul Maal Wa Tamwil for at least 3 (three) years;
2. have adequate infrastructure to conduct sponsorship of Micro, Small, and Medium Enterprises or Baitul Maal Wa Tamwil; and
3. have a Sharia Supervisory Board whose members hold an ASPM license from the Financial Services Authority.

CHAPTER VIII
SHARIA MUTUAL FUNDS IN THE FORM OF COLLECTIVE INVESTMENT CONTRACTS WITH PARTICIPATION UNITS TRADED ON STOCK EXCHANGES

Article 39
Sharia Mutual Funds in the form of Collective Investment Contracts with Participation Units traded on Stock Exchanges must follow capital market legislation regulating Sharia Mutual Funds in the form of Collective Investment Contracts with Participation Units traded on Stock Exchanges, as well as other related mutual fund regulations in the capital market sector, unless otherwise regulated and specifically arranged in this Financial Services Authority Regulation.

Article 40
The investment policy of Sharia Mutual Funds in the form of Collective Investment Contracts with Participation Units traded on Stock Exchanges must refer to each type of Sharia Mutual Fund as referred to in Article 19, Article 20, Article 21, Article 22, Article 26, Article 29 letter a, Article 31, and Article 37, and must meet the following regulations:
a. the composition of Sharia Securities forming the Sharia Mutual Fund in the form of Collective Investment Contracts with Participation Units traded on Stock Exchanges must consist of liquid Sharia Securities; and b. the liquidity level of Sharia Securities forming the portfolio of Sharia Mutual Funds in the form of Collective Investment Contracts with Participation Units traded on Stock Exchanges must be determined jointly by the Investment Manager and the Custodian Bank.

Article 41
The Prospectus of Sharia Mutual Funds in the form of Collective Investment Contracts with Participation Units traded on Stock Exchanges must meet the regulations as referred to in capital market legislation regulating the Guidelines on the Form and Content of Prospectuses in the Context of Public Offerings of Mutual Funds, and must contain:
a. information that the Collective Investment Contract of Sharia Mutual Funds in the form of Collective Investment Contracts with Participation Units traded on Stock Exchanges must follow capital market legislation regulating the Guidelines for Mutual Fund Contracts in the form of Collective Investment Contracts and capital market legislation regulating Sharia Mutual Funds in the form of Collective Investment Contracts with Participation Units traded on Stock Exchanges; and b. information on the membership of the Sharia Supervisory Board of the Investment Manager, along with its duties and responsibilities.

CHAPTER IX
SHARIA MUTUAL FUNDS IN THE FORM OF LIMITED PARTICIPATION COLLECTIVE INVESTMENT CONTRACTS

Article 42
Sharia Mutual Funds in the form of Limited Participation Collective Investment Contracts must follow Financial Services Authority Regulations on Limited Participation Collective Investment Contract Mutual Funds and capital market legislation regulating other related Mutual Funds in the form of Collective Investment Contracts, unless otherwise regulated and specifically arranged in this Financial Services Authority Regulation.

Article 43
Regulations regarding guarantees on investments in debt-type Securities as referred to in Financial Services Authority Regulations on Limited Participation Collective Investment Contract Mutual Funds do not apply to Sharia Mutual Funds in the form of Limited Participation Collective Investment Contracts that invest in Sukuk.

Article 44
Sharia Mutual Funds in the form of Limited Participation Collective Investment Contracts are prohibited from investing in Portfolios of Securities based on Real Sector Activities abroad.

Article 45
Regulations regarding investment limits on Sharia Securities and/or Sharia money market instruments issued by 1 (one) Party of at most 10% (ten percent) of the Net Asset Value of Sharia Mutual Funds in the form of Collective Investment Contracts at any time do not apply to Sharia Mutual Funds in the form of Limited Participation Collective Investment Contracts.

CHAPTER X
MANAGEMENT OF SHARIA MUTUAL FUNDS

Article 46
The management of Sharia Mutual Funds must follow the regulations:
a. Capital market legislation regulating the Guidelines for the Management of Mutual Funds in the form of Corporations, for Sharia Mutual Funds in the form of Corporations; and/or b. Capital market legislation regulating the Guidelines for the Management of Mutual Funds in the form of Collective Investment Contracts, for Sharia Mutual Funds in the form of Collective Investment Contracts, unless otherwise regulated and specifically arranged in this Financial Services Authority Regulation.

Article 47
(1) The Board of Directors, Investment Manager, and/or Custodian Bank of Sharia Mutual Funds in the form of Corporations must implement all regulations set forth in the Management Contract and/or Wealth Storage Contract according to their respective functions. (2) The Investment Manager and Custodian Bank of Sharia Mutual Funds in the form of Collective Investment Contracts must implement all regulations contained in the Collective Investment Contract.

Article 48
The Custodian Bank must reject the Investment Manager's written instructions, with a copy to the Financial Services Authority, if the implementation of such instructions could result in the Sharia Mutual Fund holding Securities and/or money market instruments other than Sharia Securities and/or Sharia money market instruments as referred to in Article 11 paragraph (3) letter f and Article 15 paragraph (3) letter g.

Article 49
In the event that a Sharia Mutual Fund holds Securities and/or money market instruments other than Sharia Securities and/or Sharia money market instruments as referred to in Article 11 paragraph (3) letter f and Article 15 paragraph (3) letter g, which is not caused by the actions of the Investment Manager and Custodian Bank, then:
a. The Investment Manager must sell them as soon as possible, at the latest 10 (ten) working days since:

1. the stock is no longer listed in the Sharia Securities List, with the condition that the capital gain from the selling price compared to the Fair Market Value at the time it was still listed in the Sharia Securities List can be calculated in the Net Asset Value of the Sharia Mutual Fund; and/or
2. Securities other than stocks and/or money market instruments no longer meet Sharia Principles, with the condition that the capital gain from the selling price compared to the Fair Market Value at the time they still met Sharia Principles in the Capital Market can be calculated in the Net Asset Value of the Sharia Mutual Fund.
   b. The Custodian Bank must submit to the Financial Services Authority and holders of Sharia Mutual Fund Securities information regarding the acquisition of capital gains from the sale of Securities as referred to in letter a at the latest on the 12th (twelfth) day of each month (if any).
   c. In the event that the 12th (twelfth) day falls on a holiday, the information as referred to in letter b must be submitted at the latest on 1 (one) working day following.

Article 50
(1) In the event that the actions of the Investment Manager and Custodian Bank result in the Sharia Mutual Fund portfolio holding Securities and/or money market instruments other than Sharia Securities and/or Sharia money market instruments as regulated in Article 11 paragraph (3) letter f and Article 15 paragraph (3) letter g of this Financial Services Authority Regulation, the Financial Services Authority has the authority to:
a. prohibit the Investment Manager from issuing new Participation Units and/or new shares of the Sharia Mutual Fund; b. prohibit the Investment Manager and Custodian Bank from transferring the wealth of the Sharia Mutual Fund except for the purpose of:

1. cleaning the wealth of the Sharia Mutual Fund from elements contrary to Sharia Principles in the Capital Market; and/or
2. paying repurchase requests for Participation Units and/or shares of the Sharia Mutual Fund.
   c. require the Investment Manager and Custodian Bank to be jointly and severally liable to purchase the portfolio contrary to Sharia Principles in the Capital Market at the acquisition price within a time period determined by the Financial Services Authority;
   d. require the Investment Manager, on behalf of the Sharia Mutual Fund, to sell or transfer the wealth elements of the Sharia Mutual Fund from wealth elements contrary to Sharia Principles in the Capital Market, with the condition that the capital gain from the selling price compared to the last Fair Market Value at the time it still met Sharia Principles in the Capital Market is separated from the Net Asset Value calculation of the Sharia Mutual Fund and treated as social funds; and/or e. require the Investment Manager to announce to the public the prohibitions and/or obligations set by the Financial Services Authority as referred to in letter a, letter b, and letter c, in 2 (two) daily newspapers in Indonesian with national circulation at the expense of the Investment Manager and Custodian Bank at the latest by the end of the 2nd (second) working day after receiving the letter from the Financial Services Authority. (2) The Custodian Bank must submit to the Financial Services Authority and holders of Sharia Mutual Fund Securities information regarding the acquisition of capital gains from the sale of Securities as referred to in paragraph (1) letter d and information regarding its use as social funds at the latest on the 12th (twelfth) day of each month (if any). (3) In the event that the 12th (twelfth) day falls on a holiday, the information as referred to in paragraph (2) must be submitted at the latest on 1 (one) working day following.

Article 51
(1) In the event that the Investment Manager and/or Custodian Bank do not implement the obligations as referred to in Article 50, the Financial Services Authority has the authority to replace the Investment Manager, Custodian Bank, or order the dissolution of the Sharia Mutual Fund. (2) In the event that the Investment Manager and Custodian Bank do not dissolve the Sharia Mutual Fund as referred to in paragraph (1), the Financial Services Authority has the authority to dissolve the Sharia Mutual Fund.

CHAPTER XI
DISSOLUTION OF SHARIA MUTUAL FUNDS

Article 52
Regulations regarding the dissolution and liquidation of Sharia Mutual Funds in the form of Collective Investment Contracts must follow capital market legislation regulating the Guidelines for the Management of Mutual Funds in the form of Collective Investment Contracts, unless otherwise regulated and specifically arranged in this Financial Services Authority Regulation.

Article 53
Sharia Mutual Funds in the form of Collective Investment Contracts must be dissolved if any of the following occur:
a. within a period of 90 (ninety) trading days, the Sharia Mutual Fund in the form of Collective Investment Contracts whose Registration Statement has become effective has managed funds of less than Rp10,000,000,000.00 (ten billion rupiah); b. within a period of 120 (one hundred twenty) trading days after the Registration Statement becomes effective, having managed funds of less than Rp10,000,000,000.00 (ten billion rupiah), for Protected Sharia Mutual Funds and Index Sharia Mutual Funds;
c. ordered by the Financial Services Authority in accordance with capital market legislation;
d. the total Net Asset Value of Sharia Mutual Funds in the form of Collective Investment Contracts is less than Rp10,000,000,000.00 (ten billion rupiah) for 120 (one hundred twenty) consecutive trading days; and/or e. the Investment Manager and Custodian Bank have agreed to dissolve the Sharia Mutual Fund in the form of Collective Investment Contracts.

CHAPTER XII
REPORTING

Article 54
Regulations regarding reporting obligations for Mutual Funds in the form of Corporations as referred to in capital market legislation regulating Mutual Funds in the form of Corporations apply mutatis mutandis to Sharia Mutual Funds in the form of Corporations.

Article 55
Regulations regarding reporting obligations for Mutual Funds in the form of Collective Investment Contracts as referred to in capital market legislation regulating Mutual Funds in the form of Collective Investment Contracts apply mutatis mutandis to Sharia Mutual Funds in the form of Collective Investment Contracts.

CHAPTER XIII
SANCTION REGULATIONS

Article 56
(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, in the form 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 g. Cancellation of registrations.
(2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, e, f, or g may be imposed with or without prior imposition of 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) letters c, d, e, f, or g.

Article 57
In addition to administrative sanctions as referred to in Article 56 paragraph (1), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 58
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 56 paragraph (1) and specific actions as referred to in Article 57 to the public.

CHAPTER XIV
TRANSITIONAL PROVISIONS

Article 59
Investment Managers who have managed Sharia Mutual Funds must adjust their Collective Investment Contracts as referred to in this Financial Services Authority Regulation at the latest 1 (one) year since the promulgation of this Financial Services Authority Regulation.

Article 60
(1) The obligation for members of the Sharia Supervisory Board and Sharia Expert Team to hold Sharia Capital Market Expert licenses as referred to in Article 7 paragraph (3) for a period of 2 (two) years since this Financial Services Authority Regulation takes effect may be replaced by individuals meeting the requirements as referred to in Article 29 paragraph (1) of the Financial Services Authority Regulation on Sharia Capital Market Experts, provided that they report to the Financial Services Authority at the latest 6 (six) months since the taking effect of the Financial Services Authority Regulation on Sharia Capital Market Experts. (2) Individuals who have submitted reports to the Financial Services Authority as referred to in paragraph (1) may become members of the Sharia Supervisory Board or members of the Sharia Expert Team even if they do not yet hold the ASPM license as referred to in Article 7 paragraph (3) for a maximum of 2 (two) years since the taking effect of the Financial Services Authority Regulation on Sharia Capital Market Experts.

Article 61
Registration Statements for Public Offerings of Sharia Mutual Funds submitted to the Financial Services Authority before the taking effect of this Financial Services Authority Regulation shall be resolved based on Regulation Number IX.A.13, Appendix of the Decision of the Head of the Capital Market and Financial Institution Supervisory Board Number: Kep-181/BL/2009 dated June 30, 2009 concerning the Issuance of Sharia Securities.

CHAPTER XV
CLOSING PROVISIONS

Article 62
Upon the commencement of this Financial Services Authority Regulation, Regulation Number IX.A.13, Appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Supervisory Board Number: KEP-181/BL/2009 dated June 30, 2009 concerning the Issuance of Sharia Securities shall cease to apply to the issuance of Sharia Mutual Funds.

Article 63
This Financial Services Authority Regulation shall take effect on the date of its promulgation.

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

Established in Jakarta
On November 3, 2015
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY

signed
MULIAMAN D. HADAD

Promulgated in Jakarta
On November 10, 2015
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,

signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2015 NUMBER 270

A copy that is consistent with the original
Director of Law 1
Ministry of Law

signed
Sudarmaji

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 19 /POJK.04/2015
CONCERNING
ISSUANCE AND REQUIREMENTS FOR SHARIA MUTUAL FUNDS

I. GENERAL

In order to develop the Sharia Capital Market to grow sustainably, adequate infrastructure development is required. One important infrastructure is the availability of clear, easily understood, and applicable regulations. To support the development of the Sharia Capital Market mentioned above, it is necessary to refine and separate provisions related to Sharia Mutual Funds so that they are in accordance with the characteristics and management of such Securities. The refinement and separation of these provisions are necessary considering that Regulation Number IX.A.13, Appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Supervisory Board Number: Kep-181/BL/2009 dated June 30, 2009 concerning the Issuance of Sharia Securities is considered too general because it regulates the issuance of various types of Sharia Securities.

The following are some main points of refinement in the Financial Services Authority Regulation concerning the Issuance and Requirements for Sharia Mutual Funds, including: regulation of Sharia Mutual Funds based on their type, relaxation of investment policies in a single Sharia Mutual Fund portfolio, the obligation for Investment Managers as managers of Sharia Mutual Funds to have a Sharia Supervisory Board, and new types of Sharia Mutual Funds, namely Sukuk-based Sharia Mutual Funds and Foreign Sharia Securities-based Sharia Mutual Funds.

II. ARTICLE BY ARTICLE EXPLANATION

Article 1
It is sufficiently clear.

Article 2
What is meant by "public offering abroad" is a public offering of Securities in accordance with the legislation in the country where the Securities are offered.

Article 3
It is sufficiently clear.

Article 4
The legislation in the Capital Market sector that regulates the General Provisions for the Submission of Registration Statements currently in force is Regulation Number IX.A.1, Appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Supervisory Board Number: Kep-690/BL/2011, dated December 30, 2011 concerning General Provisions for the Submission of Registration Statements.

Article 5
It is sufficiently clear.

Article 6
It is sufficiently clear.

Article 7
Paragraph (1)
The Sharia Supervisory Board of the Investment Manager may consist of 1 (one) member appointed by the Board of Directors.

Paragraph (2)
It is sufficiently clear.

Paragraph (3)
It is sufficiently clear.

Paragraph (4)
What is meant by "supervision of Sharia Mutual Funds in the context of fulfilling Sharia Principles in the Capital Market on a sustainable basis" is the supervision of the fulfillment of Sharia Principles in the Capital Market conducted until the dissolution of the Sharia Mutual Fund.

Paragraph (5)
It is sufficiently clear.

Article 8
Paragraph (1)
It is sufficiently clear.

Paragraph (2)
It is sufficiently clear.

Paragraph (3)
Letter a
What is meant by "the party being supervised" is the party using the services of the Sharia Supervisory Board.

Letter b
It is sufficiently clear.

Letter c
It is sufficiently clear.

Letter d
It is sufficiently clear.

Letter e
It is sufficiently clear.

Letter f
It is sufficiently clear.

Paragraph (4)
It is sufficiently clear.

Article 9
The legislation in the Capital Market sector that regulates the General Provisions for the Submission of Registration Statements currently in force is Regulation Number IX.A.1, Appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Supervisory Board Number: Kep-690/BL/2011, dated December 30, 2011 concerning General Provisions for the Submission of Registration Statements.

The legislation in the Capital Market sector that regulates the Registration Statement in the Context of a Public Offering of Mutual Funds in the form of a Corporation currently in force is Regulation Number IX.C.4, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number: Kep-52/PM/1996, dated January 17, 1996 concerning Registration Statement in the Context of a Public Offering of Mutual Funds in the form of a Corporation.

The legislation in the Capital Market sector that regulates other Mutual Funds in the form of a Corporation currently in force includes:

1. Regulation Number IV.A.3, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number: Kep-13/PM/2002, dated August 14, 2002 concerning Guidelines for the Management of Mutual Funds in the form of a Corporation; and
2. Regulation Number IV.A.4, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number: Kep-14/PM/2002, dated August 14, 2002 concerning Guidelines for Mutual Fund Contracts in the form of a Corporation.

Article 10
It is sufficiently clear.

Article 11
Paragraph (1)
The legislation in the Capital Market sector that regulates the guidelines for the management contract of Mutual Funds in the form of a Corporation currently in force is Regulation Number IV.A.4, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number: Kep-14/PM/2002, dated August 14, 2002 concerning Guidelines for the Management Contract of Mutual Funds in the form of a Corporation.

Paragraph (2)
The legislation in the Capital Market sector that regulates the guidelines for the custody contract of the assets of Mutual Funds in the form of a Corporation currently in force is Regulation Number IV.A.5, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number: Kep-21/PM/1996, dated January 17, 1996 concerning Guidelines for the Custody Contract of Assets of Mutual Funds in the form of a Corporation.

Paragraph (3)
Letter a
It is sufficiently clear.

Letter b
It is sufficiently clear.

Letter c
It is sufficiently clear.

Letter d
It is sufficiently clear.

Letter e
It is sufficiently clear.

Letter f
Number 1
The legislation in the Capital Market sector that regulates the Sharia Securities List and the party issuing the Sharia Securities List currently in force is Regulation Number II.K.1, Appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Supervisory Board Number: KEP-208/BL/2012 dated April 24, 2012 Concerning Criteria and Issuance of Sharia Securities List.

Number 2
What is meant by "Sharia Warrants" is Securities issued by a company that gives the right to the holder of the Securities to purchase Sharia shares of that company at a certain price after 6 (six) months or more since the Securities in question were issued.

Number 3
It is sufficiently clear.

Number 4
It is sufficiently clear.

Number 5
It is sufficiently clear.

Number 6
It is sufficiently clear.

Number 7
What is meant by "domestic Sharia commercial paper" includes, among others, Medium Term Note syariah.

Number 8
It is sufficiently clear.

Number 9
What is meant by "Sharia money market instruments" includes, among others, Sharia Bank Indonesia Certificates.

Paragraph (4)
It is sufficiently clear.

Paragraph (5)
It is sufficiently clear.

Article 12
It is sufficiently clear.

Article 13
Letter a
It is sufficiently clear.

Letter b
What is meant by "Government of the Republic of Indonesia" is the Central Government.

Letter c
It is sufficiently clear.

Article 14
The legislation in the Capital Market sector that regulates the Registration Statement in the Context of a Public Offering of Mutual Funds in the form of Collective Investment Contracts currently in force is Regulation Number IX.C.5, Appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Supervisory Board Number: Kep-430/BL/2007, dated December 19, 2007 concerning Registration Statement in the Context of a Public Offering of Mutual Funds in the form of Collective Investment Contracts.

The legislation in the Capital Market sector that regulates other Mutual Funds in the form of Collective Investment Contracts includes:

1. Regulation Number IV.B.1, Appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Supervisory Board Number: Kep-552/BL/2010, dated December 30, 2010 concerning Guidelines for the Management of Mutual Funds in the form of Collective Investment Contracts; and
2. Regulation Number IV.B.2, Appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Supervisory Board Number: Kep-553/BL/2010, dated December 30, 2010 concerning Guidelines for Mutual Fund Contracts in the form of Collective Investment Contracts.

Article 15
Paragraph (1)
It is sufficiently clear.

Paragraph (2)
It is sufficiently clear.

Paragraph (3)
Letter a
It is sufficiently clear.

Letter b
It is sufficiently clear.

Letter c
It is sufficiently clear.

Letter d
In the event that the Party conducting Sharia activities in the Capital Market is a Branch Office of a Foreign Bank, what is meant by "directors" is the highest leadership of that Foreign Bank Branch Office.

Letter e
It is sufficiently clear.

Letter f
It is sufficiently clear.

Letter g
It is sufficiently clear.

Paragraph (4)
It is sufficiently clear.

Article 16
It is sufficiently clear.

Article 17
It is sufficiently clear.

Article 18
The legislation in the Capital Market sector that regulates the guidelines for the daily announcement of the Net Asset Value of Open-End Mutual Funds currently in force is Regulation Number IV.C.3, Appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Supervisory Board Number: Kep-516/BL/2012, dated September 21, 2012 concerning Guidelines for the Daily Announcement of the Net Asset Value of Open-End Mutual Funds.

Article 19
Letter a
Examples of Sharia money market instruments include Sharia Bank Indonesia Certificates.

Letter b
Examples of Fixed Income Sharia Securities include sukuk ijarah.

Article 20
It is sufficiently clear.

Article 21
It is sufficiently clear.

Article 22
It is sufficiently clear.

Article 23
The legislation in the Capital Market sector that regulates the Guidelines for the Management of Protected Mutual Funds, Guaranteed Mutual Funds, and Index Mutual Funds currently in force is Regulation Number IV.C.4, Appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Supervisory Board Number: Kep-262/BL/2011, dated May 31, 2011 concerning Guidelines for the Management of Protected Mutual Funds, Guaranteed Mutual Funds, and Index Mutual Funds.

Article 24
It is sufficiently clear.

Article 25
It is sufficiently clear.

Article 26
It is sufficiently clear.

Article 27
The legislation in the Capital Market sector that regulates the Guidelines for the Management of Protected Mutual Funds, Guaranteed Mutual Funds, and Index Mutual Funds currently in force is Regulation Number IV.C.4, Appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Supervisory Board Number: Kep-262/BL/2011, dated May 31, 2011 concerning Guidelines for the Management of Protected Mutual Funds, Guaranteed Mutual Funds, and Index Mutual Funds.

Article 28
It is sufficiently clear.

Article 29
It is sufficiently clear.

Article 30
The legislation in the Capital Market sector that regulates the Guidelines for the Management of Mutual Funds in the form of a Corporation currently in force is Regulation Number IV.A.3, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number: Kep-13/PM/2002, dated August 14, 2002 concerning Guidelines for the Management of Mutual Funds in the form of a Corporation.

The legislation in the Capital Market sector that regulates the Guidelines for the Management of Mutual Funds in the form of Collective Investment Contracts currently in force is Regulation Number IV.B.1, Appendix of the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution Supervisory Board Number: Kep-552/BL/2010, dated December 30, 2010 concerning Guidelines for the Management of Mutual Funds in the form of Collective Investment Contracts.

Article 31
It is sufficiently clear.

Article 32
It is sufficiently clear.

Article 33
It is sufficiently clear.

Article 34
It is sufficiently clear.

Article 35
The legislation in the Capital Market sector that regulates the Guidelines for the Management of Mutual Funds in the form of a Corporation currently in force is Regulation Number IV.A.3, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board Number: Kep-13/PM/2002, dated August 14, 2002 concerning Guidelines for the Management of Mutual Funds in the form of a Corporation.

Article 36
It is sufficiently clear.

Article 37
It is sufficiently clear.

Article 38
Letter a
It is sufficiently clear.

Letter b
It is sufficiently clear.

Letter c
It is sufficiently clear.

Letter d
It is sufficiently clear.

Letter e
Number 1
Experience in mentoring Micro, Small and Medium Enterprises (MSMEs) or Baitul Maal Wa Tamwil (BMT) for at least 3 (three) years is evidenced, among others, by the deed of establishment.

Number 2
Adequate infrastructure in mentoring Micro, Small and Medium Enterprises (MSMEs) or Baitul Maal Wa Tamwil (BMT) can be evidenced, among others, by sufficient human resources, adequate supervision systems, and standard operating procedures.

Number 3
It is sufficiently clear.

Article 39
It is sufficiently clear.

Article 40
Letter a
What is meant by "liquid" includes, among others, a higher frequency of Securities transactions compared to the average frequency of transactions of similar Securities, for example, shares compared to shares.

Letter b
It is sufficiently clear.

Article 41
It is sufficiently clear.

Article 42
It is sufficiently clear.

Article 43
It is sufficiently clear.

Article 44
It is sufficiently clear.

Article 45
It is sufficiently clear.

Article 46
It is sufficiently clear.

Article 47
It is sufficiently clear.

Article 48
It is sufficiently clear.

Article 49
It is sufficiently clear.

Article 50
It is sufficiently clear.

Article 51
It is sufficiently clear.

Article 52
It is sufficiently clear.

Article 53
It is sufficiently clear.

Article 54
It is sufficiently clear.

Article 55
It is sufficiently clear.

Article 56
It is sufficiently clear.

Article 57
What is meant by "specific actions" includes, among others, ordering the Investment Manager to dissolve the Mutual Fund in the form of a Collective Investment Contract.

Article 58
It is sufficiently clear.

Article 59
It is sufficiently clear.

Article 60
It is sufficiently clear.

Article 61
It is sufficiently clear.

Article 62
It is sufficiently clear.

Article 63
It is sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5759