FINANCIAL SERVICES AUTHORITY

REPUBLIC OF INDONESIA

COPY

FINANCIAL SERVICES AUTHORITY REGULATION

OF THE REPUBLIC OF INDONESIA

NUMBER 18 OF 2023

CONCERNING

THE ISSUANCE AND REQUIREMENTS FOR SUSTAINABILITY-LINKED DEBT SECURITIES AND SUKUK

BY THE GRACE OF THE ALMIGHTY GOD,

THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that to realize sustainable development capable of maintaining economic stability, a national economic system is needed that emphasizes harmony between economic, environmental, and social sustainability aspects; b. that the sustainable finance roadmap issued by the Financial Services Authority needs to be followed up by issuing regulations that can develop the capital market industry while maintaining environmental sustainability and sustainable social impact;
c. that within the capital market roadmap published by the Financial Services Authority, action plans regarding the development of sustainable finance in the capital market sector have been outlined, one of which is through the development of sustainability-linked instruments;
d. that to encourage the development of sustainability-linked debt securities, it is necessary to replace the Financial Services Authority Regulation Number 60/POJK.04/2017 concerning the Issuance and Requirements for Environmentally-Focused Debt Securities (Green Bonds); e. that based on the considerations referred to in letters a, b, c, and d, it is necessary to establish a Financial Services Authority Regulation concerning the Issuance and Requirements for Sustainability-Linked Debt Securities and Sukuk;

Recalling:

Law Number 8 of 1995 concerning Capital Markets (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);

DECIDING:

Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE ISSUANCE AND REQUIREMENTS FOR SUSTAINABILITY-LINKED DEBT SECURITIES AND SUKUK.

CHAPTER I

GENERAL PROVISIONS

Article 1

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

Securities are securities or investment contracts, whether in conventional or digital forms or other forms in accordance with technological developments, which provide rights to the owner to directly or indirectly obtain economic benefits from the issuer or from certain parties based on agreements and any derivatives over securities, which can be transferred and/or traded in the capital market.
Sukuk are Sharia-compliant securities in the form of certificates or proof of ownership that have equal value and represent indivisible or undivided shares (syuyu’/undivided share) over the underlying assets.
Environmentally-Focused Debt Securities (green bond) and/or Environmentally-Focused Sukuk (green sukuk), hereinafter referred to as Environmentally-Focused Debt Securities (EBUS Lingkungan), are debt securities and/or Sukuk whose issuance proceeds are used for financing or refinancing environmentally-focused business activities.
Socially-Focused Debt Securities (social bond) and/or Socially-Focused Sukuk (social sukuk), hereinafter referred to as Socially-Focused Debt Securities (EBUS Sosial), are debt securities and/or Sukuk whose issuance proceeds are used for financing or refinancing socially-focused business activities.
Sustainability-Linked Debt Securities (sustainability bond) and/or Sustainability-Linked Sukuk (sustainability sukuk), hereinafter referred to as Sustainability-Linked Debt Securities (EBUS Keberlanjutan), are debt securities and/or Sukuk whose issuance proceeds are used for financing or refinancing environmentally-focused business activities and socially-focused business activities.
Waqf Sukuk (sukuk-linked waqf) is Sukuk whose issuance proceeds are used for financing or financing of projects to optimize the benefits of Waqf assets.
Sustainability-Linked Debt Securities (sustainability-linked bond) and/or Sustainability-Linked Sukuk (sustainability-linked sukuk), hereinafter referred to as Sustainability-Linked Debt Securities (EBUS Terkait Keberlanjutan), are debt securities and/or Sukuk whose issuance is linked to the achievement of specific sustainability key performance indicators.
Waqf Assets are tangible objects of waqf (mawquf) handed over by the waqif (donor) to the nazhir (manager of waqf assets).
Benefits of Waqf Assets are the benefits from the management and development of Waqf Assets.
Environmentally-Focused Business Activities, hereinafter abbreviated as KUBL, are business activities and/or other activities aimed at protecting, improving, and/or enhancing the quality or function of the environment.
Socially-Focused Business Activities, hereinafter abbreviated as KUBS, are business activities and/or other activities aimed at addressing or mitigating social problems and/or providing benefits for target populations.
Sustainability Key Performance Indicator, hereinafter abbreviated as IKU Keberlanjutan, is the main indicator used to measure the performance achievement of selected sustainability activities.
Sustainability Performance Targets, hereinafter abbreviated as TKK, are the achievement stages of IKU Keberlanjutan that are commitments of the issuer or issuer that can be measured within a specified time frame.
Public Offering is the offering activity conducted by the issuer to sell Securities to the public in accordance with the procedures regulated in the Law concerning the development and strengthening of the financial sector and its implementing regulations.
Registration Statement is a document that must be submitted to the Financial Services Authority by the issuer in the context of a Public Offering or public company.
Party is an individual, legal entity, company, joint venture, association, or organized group.
External Review Provider is a Party with competence or expertise to conduct reviews on the sustainability aspects of sustainability-linked debt securities and/or Sukuk.
Issuer is a Party conducting a Public Offering.
Issuer is a Party issuing debt securities and/or Sukuk without a Public Offering.
Trustee is a Party representing the interests of holders of debt securities and/or Sukuk.
Monitoring Agent is a Party that monitors the obligations of the Issuer of debt securities and/or Sukuk without a Public Offering from the issuance of such securities until maturity.
Sharia Supervisory Board is a board responsible for providing advice and suggestions and supervising the fulfillment of Sharia principles in the capital market for Parties conducting Sharia activities in the capital market.
Sharia Expert Team is a team responsible for the Sharia compliance of Sharia products or services in the capital market issued or released by Parties conducting Sharia activities in the capital market.
Prospectus is a written document containing information about the Issuer and other information related to the Public Offering, with the aim that other Parties purchase the Securities.
Information Memorandum is a written document for the issuance of EBUS without a Public Offering containing detailed information or material facts regarding the issuance of EBUS without a Public Offering and information and/or statements that may influence investor decisions, which are known or reasonably known by the Issuer.

Article 2

This Financial Services Authority Regulation applies to the issuance of sustainability-linked debt securities and/or Sukuk conducted through:
a. Public Offering; or b. Issuance without Public Offering for Securities with a maturity of more than 1 (one) year.

Article 3

(1) Issuers must comply with laws and regulations in the capital market sector regarding:
a. Registration Statements; b. Public Offerings of debt securities and/or Sukuk; and
c. other related regulations,
except as specifically regulated in this Financial Services Authority Regulation.

(2) Issuers must comply with laws and regulations in the capital market sector regarding the Issuance of Debt Securities and/or Sukuk conducted without a Public Offering and other related regulations, except as specifically regulated in this Financial Services Authority Regulation.

Article 4

Sustainability-linked debt securities and/or Sukuk may consist of:
a. Environmentally-Focused Debt Securities (EBUS Lingkungan); b. Socially-Focused Debt Securities (EBUS Sosial);
c. Sustainability-Linked Debt Securities (EBUS Keberlanjutan);
d. Waqf Sukuk; e. Sustainability-Linked Debt Securities (EBUS Terkait Keberlanjutan); and f. Other sustainability-linked debt securities and/or Sukuk determined by the Financial Services Authority.

CHAPTER II

ISSUANCE OF EBUS LINGKUNGAN, EBUS SOSIAL, EBUS KEBERLANJUTAN, AND SUKUK WAKAF

Part One

Issuance Requirements

Article 5

(1) The issuance of Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), Sustainability-Linked Debt Securities (EBUS Keberlanjutan), and/or Waqf Sukuk must meet at least 4 (four) main components:
a. use of issuance proceeds; b. evaluation and selection process of activities financed from issuance proceeds; and
c. management of issuance proceeds; and
d. reporting.

(2) Issuers or Issuers must outline the 4 (four) main components as referred to in paragraph (1) in the issuance policy framework for Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), Sustainability-Linked Debt Securities (EBUS Keberlanjutan), and/or Waqf Sukuk.

(3) Information contained in the issuance policy framework as referred to in paragraph (2) must follow the provisions regulated in this Financial Services Authority Regulation.

Article 6

(1) The use of issuance proceeds as referred to in Article 5 paragraph (1) letter a may only be used for financing and/or refinancing, directly or indirectly, of:
a. KUBL in the issuance of Environmentally-Focused Debt Securities (EBUS Lingkungan); b. KUBS in the issuance of Socially-Focused Debt Securities (EBUS Sosial);
c. KUBL and KUBS in the issuance of Sustainability-Linked Debt Securities (EBUS Keberlanjutan); and/or
d. projects/activities to optimize the Benefits of Waqf Assets in the issuance of Waqf Sukuk.

(2) KUBL and/or KUBS as referred to in paragraph (1) may consist of:
a. new business activities and/or other activities; b. ongoing business activities and/or other activities; or
c. completed business activities and/or other activities.

(3) Projects/activities to optimize the Benefits of Waqf Assets as referred to in paragraph (1) letter d may consist of:
a. new projects/activities; b. ongoing projects/activities; or
c. completed projects/activities.

Article 7

Assets underlying the issuance of Waqf Sukuk may consist of Benefits of Waqf Assets, or business activities or projects on Waqf Assets.

Article 8

KUBL that can be financed as referred to in Article 6 paragraph (1) letters a and c consists of business activities and/or other activities related to:
a. renewable energy; b. energy efficiency;
c. pollution prevention and control;
d. sustainable management of living natural resources and land use; e. conservation of terrestrial and aquatic biodiversity; f. environmentally friendly transportation; g. sustainable water and wastewater management; h. climate change adaptation;
i. products that can reduce resource use and produce less pollution;
j. environmentally focused buildings meeting nationally, regionally, or internationally recognized standards or certifications; and/or k. other environmentally focused business activities and/or other activities.

Article 9

(1) KUBS that can be financed as referred to in Article 6 paragraph (1) letters b and c consists of business activities and/or other activities related to:
a. affordable basic infrastructure services in terms of access and price; b. access to essential services;
c. affordable housing;
d. job creation, and programs designed to prevent and/or reduce unemployment, including financing for small and medium enterprises and micro-financing; e. food security and sustainable food systems; f. socio-economic improvement and empowerment; and/or g. other socially focused business activities and/or other activities.

(2) KUBS as referred to in paragraph (1) is aimed at addressing or mitigating social problems and/or providing benefits for target populations.

Article 10

In implementing the evaluation and selection process of activities financed from issuance proceeds as referred to in Article 5 paragraph (1) letter b, Issuers or Issuers must establish:
a. internal processes to evaluate and select KUBL and/or KUBS that can be financed; and b. processes and methods applied to identify and manage environmental and social risks that are potentially material related to business activities and/or other activities.

Article 11

(1) In managing issuance proceeds as referred to in Article 5 paragraph (1) letter c, Issuers or Issuers must ensure that the management of issuance proceeds for Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), Sustainability-Linked Debt Securities (EBUS Keberlanjutan), and Waqf Sukuk for the purposes referred to in Article 6 is separate, at least through a special account at a bank used.

(2) In the event that the issued Securities are Sukuk, the special account as referred to in paragraph (1) must be a special account at a Sharia bank.

Article 12

(1) Reporting as referred to in Article 5 paragraph (1) letter d is conducted through reports containing information provided periodically by Issuers or Issuers after the issuance of Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), Sustainability-Linked Debt Securities (EBUS Keberlanjutan), and/or Waqf Sukuk.

(2) Issuers or Issuers must establish policies and/or mechanisms in providing information as referred to in paragraph (1) in the issuance policy framework.

Article 13

Issuers or Issuers issuing Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), and Sustainability-Linked Debt Securities (EBUS Keberlanjutan) must obtain results from an External Review Provider stating:
a. the business activities and/or other activities underlying the issuance of the relevant Securities are beneficial to the environment and/or to address or mitigate social problems and/or provide benefits for target populations; and b. the issuance policy framework as referred to in Article 5 paragraph (2) is adequate and credible.

Article 14

Issuers or Issuers issuing Waqf Sukuk must obtain results from an independent Party stating:
a. the issued Waqf Sukuk does not contradict waqf regulations as regulated in laws and regulations; b. projects/activities financed from the issuance proceeds of Waqf Sukuk are aimed at optimizing the Benefits of Waqf Assets and providing increased Benefits of Waqf Assets for waqf beneficiaries (mauquf alaih); and
c. the issuance policy framework as referred to in Article 5 paragraph (2) is adequate and credible.

Part Two

Registration Statement Documents and Issuance Documents Without Public Offering

Article 15

Registration Statement documents for Public Offerings or issuance documents without Public Offering for Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), and Sustainability-Linked Debt Securities (EBUS Keberlanjutan) must be accompanied by additional documents consisting of:
a. a letter of commitment from Issuers or Issuers to use the proceeds from Public Offerings or issuance without Public Offering of Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), and Sustainability-Linked Debt Securities (EBUS Keberlanjutan) for KUBL and/or KUBS according to Format 1 as stated in the Appendix which is an integral part of this Financial Services Authority Regulation; b. the issuance policy framework for Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), and/or Sustainability-Linked Debt Securities (EBUS Keberlanjutan) as referred to in Article 5 paragraph (2);
c. review results from External Review Providers as referred to in Article 13; and
d. proof of competence or expertise of External Review Providers.

Article 16

Registration Statement documents for Public Offerings or issuance documents without Public Offering for Waqf Sukuk must be accompanied by additional documents consisting of:
a. a letter of commitment from Issuers or Issuers to use the proceeds from Public Offerings or issuance without Public Offering of Waqf Sukuk for projects/activities to optimize the Benefits of Waqf Assets according to Format 2 as stated in the Appendix which is an integral part of this Financial Services Authority Regulation; b. the issuance policy framework for Waqf Sukuk as referred to in Article 5 paragraph (2);
c. review results from independent Parties as referred to in Article 14;
d. proof of nazhir registration or nazhir approval letter issued by the competent institution; e. proof of nazhir competence certification issued by the professional certification institution; and f. a copy of the waqf deed for Waqf Assets underlying the issuance of Waqf Sukuk.

Part Three

Prospectus and Information Memorandum for Issuance

Article 17

Prospectus or Information Memorandum for Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), or Sustainability-Linked Debt Securities (EBUS Keberlanjutan) must disclose additional information in a separate chapter containing:
a. an explanation of KUBL and/or KUBS financed with issuance proceeds, at least containing:
1. types of KUBL and/or KUBS; and
2. KUBL benefits targets for the environment or KUBS benefit targets for mitigating social problems and/or for target populations to be achieved;
b. a summary of the issuance policy framework for Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), and/or Sustainability-Linked Debt Securities (EBUS Keberlanjutan) as referred to in Article 5 paragraph (2); and
c. a summary of review results from External Review Providers as referred to in Article 13.

Article 18

Prospectus or Information Memorandum for Waqf Sukuk issuance must disclose additional information in a separate chapter containing:
a. an explanation of projects/activities conducted to optimize the Benefits of Waqf Assets financed, at least containing:
1. types of projects/activities financed from the issuance of Waqf Sukuk;
2. Benefits of Waqf Assets to be achieved from the relevant projects/activities; and
3. target beneficiaries of the Benefits of Waqf Assets from the relevant projects/activities;
b. an explanation of Benefits of Waqf Assets, or business activities or projects on Waqf Assets underlying the issuance of Waqf Sukuk;
c. a summary of review results from independent Parties as referred to in Article 14; and
d. information regarding nazhir managing Waqf Assets or Benefits of Waqf Assets, or business activities or projects on Waqf Assets as referred to in letter b, at least containing:
1. name of nazhir;
2. address;
3. registration or approval number of nazhir; and
4. competence certification held by nazhir.

Part Four

Changes to the Use of Issuance Proceeds

Article 19

(1) Issuers making changes to the use of proceeds from Public Offerings of Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), and/or Sustainability-Linked Debt Securities (EBUS Keberlanjutan) must comply with provisions in Financial Services Authority Regulations regarding reports on the realization of the use of proceeds from Public Offerings.

(2) Changes to the use of proceeds from Public Offerings as referred to in paragraph (1) may only be made for KUBL and/or KUBS in accordance with the purpose or theme of issuance.

(3) Changes to the use of proceeds from Public Offerings as referred to in paragraph (1) must be accompanied by review results from External Review Providers.

(4) Plans for changes to the use of proceeds from Public Offerings as referred to in paragraph (1) and review results from External Review Providers as referred to in paragraph (3) must be submitted to the Financial Services Authority at the latest 14 (fourteen) days before the convening of the general meeting of holders of Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), and/or Sustainability-Linked Debt Securities (EBUS Keberlanjutan).

Article 20

(1) Issuers making changes to the use of proceeds from issuance of Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), and/or Sustainability-Linked Debt Securities (EBUS Keberlanjutan) without Public Offering must comply with provisions in Financial Services Authority Regulations regarding the Issuance of Debt Securities and/or Sukuk conducted without Public Offering.

(2) Changes to the use of proceeds from issuance of Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), and/or Sustainability-Linked Debt Securities (EBUS Keberlanjutan) without Public Offering as referred to in paragraph (1) may only be made for KUBL and/or KUBS in accordance with the purpose or theme of issuance.

(3) Changes to the use of proceeds from issuance of Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), and/or Sustainability-Linked Debt Securities (EBUS Keberlanjutan) without Public Offering as referred to in paragraph (1) must be accompanied by review results from External Review Providers.

(4) Plans for changes to the use of proceeds from issuance of Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), and/or Sustainability-Linked Debt Securities (EBUS Keberlanjutan) without Public Offering as referred to in paragraph (1) and review results from External Review Providers as referred to in paragraph (3) must be submitted to the Financial Services Authority at the latest 5 (five) working days after obtaining approval from holders of Environmentally-Focused Debt Securities (EBUS Lingkungan), Socially-Focused Debt Securities (EBUS Sosial), and/or Sustainability-Linked Debt Securities (EBUS Keberlanjutan).

Article 21
(1) Issuers intending to change the use of proceeds from the Public Offering of Sukuk Wakaf must comply with the regulations of the Financial Services Authority regarding the reporting of the realization of the use of proceeds from the Public Offering. (2) Issuers who change the use of proceeds from the issuance of Sukuk Wakaf without a Public Offering must comply with the regulations of the Financial Services Authority regarding the issuance of debt-related securities and/or Sukuk without a Public Offering. (3) The change in the use of proceeds from the issuance of Sukuk Wakaf as referred to in paragraph (1) and paragraph (2) may only be carried out as long as the change in the use of proceeds is directed towards activities/projects to optimize the Benefits of Wakaf Assets. (4) In the case of activities/projects to optimize the Benefits of Wakaf Assets in the form of Green Business Activities and/or Social Business Activities, the change in the use of proceeds from the Public Offering or the issuance of Sukuk Wakaf as referred to in paragraph (1) and paragraph (2) may only be carried out on Green Business Activities and/or Social Business Activities in accordance with the purpose or theme of its issuance. (5) The change in the use of proceeds from the Public Offering and the issuance of Sukuk Wakaf as referred to in paragraph (1) and paragraph (2) must be accompanied by the results of a review from an Independent Party. (6) The plan to change the use of proceeds from the Public Offering or the issuance of Sukuk Wakaf as referred to in paragraph (1) and paragraph (2) and the review from the Independent Party as referred to in paragraph (5) must be submitted to the Financial Services Authority no later than:
a. 14 (fourteen) days before the holding of the general meeting of Sukuk Wakaf holders, for the Public Offering of Sukuk Wakaf; or b. 5 (five) working days after obtaining approval from Sukuk Wakaf holders, for the issuance of Sukuk Wakaf without a Public Offering.

Fifth Section
Reports

Article 22
(1) Issuers or Issuers who issue Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities must submit reports as referred to in Article 12 paragraph (1) 1 (one) time in 1 (one) year. (2) The reports as referred to in paragraph (1) must contain at least information regarding:
a. the realization of the use of proceeds for the selected Green Business Activities and/or Social Business Activities; b. the achievement of the realization of business activities and/or other activities;
c. changes in the realization of business activities and/or other activities, if there are changes; and
d. the impact of the Green Business Activities and/or Social Business Activities that are financed.
(3) The reports as referred to in paragraph (1) must receive a review from an External Review Provider.
(4) In the event that all proceeds from the issuance have been fully allocated, the reports as referred to in paragraph (2) letters a through c are not required to receive a review as referred to in paragraph (3). (5) The reports as referred to in paragraph (1) must be submitted by the Issuer to the Financial Services Authority attached to the annual report. (6) The submission of reports as referred to in paragraph (5) follows the reporting period of the Issuer's annual report to the Financial Services Authority. (7) In the event that the time between the effective date of the registration statement for the offering of Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities and the end of the fiscal year is more than 6 (six) months, the reports as referred to in paragraph (1) for the first time must be attached to the nearest annual report. (8) The provisions as referred to in paragraph (7) do not apply if the time between the effective date of the registration statement for the offering of Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities and the end of the fiscal year is less than 6 (six) months. (9) The reports as referred to in paragraph (8) for the first time must be attached to the annual report no later than the annual report after the anniversary of the issuance of Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities. (10) The reports as referred to in paragraph (1) must be submitted by the Issuer with the following provisions:
a. submitted to the Financial Services Authority no later than the end of the fourth month after the fiscal year ends; and b. submitted to the Monitoring Agent to be published on the Monitoring Agent's website, if using a Monitoring Agent. (11) The reports as referred to in paragraph (10) for the first time must be submitted by the Issuer with the following provisions:
a. In the event that the date of registration of Debt-Related Securities without a Public Offering in custody at a depository and clearing institution until the end of the Issuer's fiscal year has a time period of more than 6 (six) months, it must be submitted no later than the end of the fourth month after the fiscal year ends. b. In the event that the date of registration of Debt-Related Securities without a Public Offering in custody at a depository and clearing institution until the end of the Issuer's fiscal year has a time period of less than 6 (six) months, it must be submitted no later than the end of the fourth month after the next fiscal year ends. (12) The submission of reports as referred to in paragraph (1) must be carried out until the Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities mature.

Article 23
(1) Issuers or Issuers who issue Sukuk Wakaf must submit reports as referred to in Article 12 paragraph (1) 1 (one) time in 1 (one) year with the following provisions:
a. for Issuers, the submission of reports is carried out in accordance with the provisions as referred to in Article 22 paragraph (5) through paragraph (9); and b. for Issuers, the submission of reports is carried out in accordance with the provisions as referred to in Article 22 paragraph (10) and paragraph (11). (2) The reports as referred to in paragraph (1) contain at least:
a. the realization of the use of proceeds for activities/projects carried out to optimize the Benefits of Wakaf Assets; b. the achievement of the realization of activities/projects;
c. changes in the realization of activities/projects, if there are changes; and
d. the benefits of activities/projects to optimize the Benefits of Wakaf Assets for the beneficiaries of Wakaf Assets (mauquf alaih).
(3) The reports as referred to in paragraph (1) must receive a review from an Independent Party.
(4) In the event that all proceeds from the issuance have been fully allocated, the reports as referred to in paragraph (1) are not required to receive a review as referred to in paragraph (3). (5) The submission of reports as referred to in paragraph (1) must be carried out until the Sukuk Wakaf matures.

Sixth Section
Changes in Status of Environmental Debt-Related Securities, Social Debt-Related Securities, Sustainability Debt-Related Securities, and Sukuk Wakaf

Article 24
(1) In the event that the results of the review from the External Review Provider as referred to in Article 22 paragraph (3) state that the business activities and/or other activities financed no longer meet the requirements as Green Business Activities and/or Social Business Activities, the Issuer or Issuer must formulate an action plan so that the business activities and/or other activities continue to meet the requirements as Green Business Activities and/or Social Business Activities. (2) The action plan as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 14 (fourteen) working days after the deadline for the submission of reports as referred to in Article 22 paragraph (6) and paragraph (10). (3) The implementation of the action plan as referred to in paragraph (1) must be carried out no later than 1 (one) year after the acceptance of the action plan by the Financial Services Authority.

Article 25
(1) In the event that the implementation of the action plan as referred to in Article 24 paragraph (3) fails, the Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities no longer qualify as Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities. (2) In the event that the condition as referred to in paragraph (1) occurs, the Issuer must:
a. submit a report of material information or facts to the Financial Services Authority; and b. announce to the public, as regulated in the Financial Services Authority Regulation regarding the openness of material information or facts by Issuers or public companies. (3) In the event that the condition as referred to in paragraph (1) occurs, the Issuer must submit a report no later than the end of the second (2nd) working day after the deadline for the implementation of the action plan as referred to in Article 24 paragraph (3) expires to:
a. the Financial Services Authority; and b. the Monitoring Agent, if using a Monitoring Agent.
(4) The reports submitted by the Issuer as referred to in paragraph (3) must contain at least:
a. the date of the event; and b. a description or information regarding the condition as referred to in paragraph (1).

Article 26
(1) In the event that the condition as referred to in Article 25 paragraph (1) occurs, holders of Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities may request the Issuer or Issuer to:
a. repurchase the Securities; or b. provide compensation in the form of a coupon increase on the Securities.
(2) Provisions regarding the procedure for repurchasing the Securities and providing compensation in the form of a coupon increase on the Securities as referred to in paragraph (1), including the magnitude of the coupon increase rate, must be contained in:
a. the trust agreement for the Public Offering; or b. an agreement related to the interests of holders of Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities for issuance without a Public Offering. (3) Requests for repurchasing the Securities or providing compensation in the form of a coupon increase on the Securities as referred to in paragraph (1) must be carried out through:
a. the Trustee for the Public Offering; or b. the Monitoring Agent for issuance without a Public Offering.
(4) In the event that the issuance of Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities without a Public Offering does not use a Monitoring Agent, requests for repurchase or providing compensation as referred to in paragraph (1) are submitted to the Issuer. (5) In the event that holders of Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities request the Issuer or Issuer to repurchase or provide compensation in the form of a coupon increase on the Securities as referred to in paragraph (1), the Issuer or Issuer must repurchase and/or provide compensation in the form of a coupon increase on the Securities. (6) The repurchase of Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities by the Issuer or Issuer as referred to in paragraph (1) letter a must be carried out with the following provisions:
a. Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities that have been repurchased by the Issuer or Issuer as referred to in paragraph (5) cannot be resold by the Issuer or Issuer; b. the mechanism for determining the repurchase price is contained in the trust agreement or an agreement related to the interests of holders of Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities; and
c. the implementation of the repurchase is completed no later than 3 (three) months after the Trustee, Monitoring Agent, or holders of Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities submit a request for repurchase.

Article 27
In fulfilling the obligations as referred to in Article 26 paragraph (5), the Issuer or Issuer may regulate in the trust agreement or an agreement related to the interests of holders of Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities regarding the Party acting as the guarantor.

Article 28
(1) In the event that the results of the review from the Independent Party as referred to in Article 23 paragraph (3) state that the activities/projects financed no longer meet the requirements as activities/projects to optimize the Benefits of Wakaf Assets, the Issuer or Issuer must formulate an action plan so that the activities/projects continue to meet the requirements as activities/projects to optimize the Benefits of Wakaf Assets. (2) The action plan as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 14 (fourteen) working days after the deadline for the submission of reports as referred to in Article 23 paragraph (1). (3) The implementation of the action plan as referred to in paragraph (1) must be carried out no later than 1 (one) year after the acceptance of the action plan by the Financial Services Authority.

Article 29
(1) In the event that the implementation of the action plan as referred to in Article 28 paragraph (3) fails, the Sukuk Wakaf no longer qualifies as Sukuk Wakaf.
(2) In the event that the condition as referred to in paragraph (1) occurs, the Issuer must:
a. submit a report of material information or facts to the Financial Services Authority; and b. announce to the public, as regulated in the Financial Services Authority Regulation regarding the openness of material information or facts by Issuers or public companies. (3) In the event that the condition as referred to in paragraph (1) occurs, the Issuer must submit a report no later than the end of the second (2nd) working day after the deadline for the implementation of the action plan as referred to in Article 28 paragraph (3) expires to:
a. the Financial Services Authority; and b. the Monitoring Agent, if using a Monitoring Agent.
(4) The reports submitted by the Issuer as referred to in paragraph (3) must contain at least:
a. the date of the event; and b. a description or information regarding the condition as referred to in paragraph (1).
(5) In the event that the condition as referred to in paragraph (1) occurs, the Issuer or Issuer of Sukuk Wakaf must repurchase the Sukuk Wakaf.
(6) Provisions regarding the procedure for repurchasing the Sukuk Wakaf as referred to in paragraph (5) must be contained in:
a. the trust agreement for the Public Offering; or b. an agreement related to the interests of holders of Sukuk Wakaf for issuance without a Public Offering.
(7) The repurchase of Sukuk Wakaf by the Issuer or Issuer as referred to in paragraph (5) must be carried out with the following provisions:
a. Sukuk Wakaf that has been repurchased by the Issuer or Issuer as referred to in paragraph (5) cannot be resold by the Issuer or Issuer; b. the mechanism for determining the repurchase price is contained in the trust agreement or an agreement related to the interests of holders of Sukuk Wakaf; and
c. the implementation of the repurchase is completed no later than 3 (three) months after the Financial Services Authority receives a report from the Issuer or Issuer regarding the occurrence of the condition as referred to in paragraph (1).

Article 30
Issuers or Issuers are exempted from the obligation to:
a. repurchase or provide compensation in the form of a coupon increase on Environmental Debt-Related Securities, Social Debt-Related Securities, and/or Sustainability Debt-Related Securities as referred to in Article 26 paragraph (5); and/or b. repurchase Sukuk Wakaf as referred to in Article 29 paragraph (5), in the event that the conditions as referred to in Article 25 paragraph (1) and Article 29 paragraph (1) are caused by circumstances beyond the control and power of the Issuer or Issuer, including:
a. natural disasters, war, riots, fires, strikes that significantly affect the continuity of the Issuer's or Issuer's business; and/or b. other events that significantly affect the continuity of the Issuer's or Issuer's business as determined by the Financial Services Authority.

CHAPTER III
ISSUANCE OF DEBT-RELATED SECURITIES RELATED TO SUSTAINABILITY

First Section
Issuance Requirements

Article 31
(1) The issuance of Sustainability-Related Debt-Related Securities is used for the general purposes of the Issuer or Issuer.
(2) The issuance as referred to in paragraph (1) must be linked to the Sustainability Key Performance Indicators (KPIs) established by the Issuer or Issuer.

Article 32
(1) The issuance of Sustainability-Related Debt-Related Securities must meet at least the following main components:
a. the determination of Sustainability KPIs; b. the implementation of Target Calibration Key (TKK) on Sustainability KPIs;
c. the characteristics of Sustainability-Related Debt-Related Securities;
d. verification; and e. reporting.
(2) Issuers or Issuers must outline the 5 (five) main components as referred to in paragraph (1) in the policy framework for the issuance of Sustainability-Related Debt-Related Securities. (3) Information contained in the policy framework for issuance as referred to in paragraph (1) must follow the provisions as regulated in this Financial Services Authority Regulation.

Second Section
Main Components of the Issuance of Sustainability-Related Debt-Related Securities Paragraph 1 Determination of Sustainability KPIs

Article 33
(1) The determination of Sustainability KPIs as referred to in Article 32 paragraph (1) letter a must:
a. be relevant, core and material, and strategic for the business activities of the Issuer or Issuer currently and/or in the future; b. be measurable or quantifiable with a consistent methodology;
c. be comparable; and
d. be provable and accountable.
(2) Sustainability KPIs as referred to in paragraph (1) must be clearly defined and include:
a. an applicable scope; and b. calculation methodology.
(3) Sustainability KPIs as referred to in paragraph (1) can be aligned with sustainable development goals.
(4) In determining Sustainability KPIs, the Issuer or Issuer may establish 1 (one) or more KPIs to be achieved.

Paragraph 2
Implementation of Target Calibration Key (TKK) on Sustainability KPIs

Article 34
(1) The implementation of Target Calibration Key (TKK) on Sustainability KPIs as referred to in Article 32 paragraph (1) letter b is carried out by establishing the Target Calibration Key (TKK) for each Sustainability KPI as referred to in Article 33. (2) The establishment of the Target Calibration Key (TKK) as referred to in paragraph (1) must meet the following requirements:
a. representing a significant increase in each Sustainability KPI and exceeding the Target Calibration Key (TKK) previously achieved; b. being comparable with external benchmarks or references, if any;
c. being consistent with the company's internal sustainability strategy, if any; and
d. having a clear implementation timeline.
(3) The establishment of the Target Calibration Key (TKK) as referred to in paragraph (1) must consider at least the following benchmarking approaches:
a. the performance of the Issuer or Issuer, including:

the track record of achieving the selected sustainability KPIs for at least 3 (three) years, if possible; and
forward-looking internal Sustainability KPI guidelines;
b. the performance of comparators, including the position of the Target Calibration Key (TKK) against comparator companies and industry standards; and
c. scientific references to official national, regional, or international targets or to recognized best available technology or other references for determining relevant targets across environmental and social themes.
(4) Issuers or Issuers must disclose information regarding significant factors that can determine or affect the achievement of the established Target Calibration Key (TKK) as referred to in paragraph (1).

Paragraph 3
Characteristics of Sustainability-Related Debt-Related Securities

Article 35
(1) The characteristics of Sustainability-Related Debt-Related Securities as referred to in Article 32 paragraph (1) letter c must be adjusted to the achievement of the Sustainability KPIs and Target Calibration Key (TKK) established by the Issuer or Issuer. (2) The adjustment of the characteristics of Sustainability-Related Debt-Related Securities as referred to in paragraph (1) must contain at least:
a. variations in compensation for Sustainability-Related Debt-Related Securities and/or its characteristics; and b. fallback mechanisms in case the Target Calibration Key (TKK) cannot be calculated or observed well/satisfactorily. (3) The variation in compensation as referred to in paragraph (2) letter a must include:
a. the provision of compensation in the form of a coupon increase on Sustainability-Related Debt-Related Securities; and b. the repurchase of Sustainability-Related Debt-Related Securities, resulting from the failure to achieve the Sustainability KPIs and Target Calibration Key (TKK) by the Issuer or Issuer. (4) Issuers or Issuers must provide clear information regarding the adjustment of the characteristics of Sustainability-Related Debt-Related Securities as referred to in paragraph (1), paragraph (2), and paragraph (3).

Paragraph 4
Verification

Article 36
Verification as referred to in Article 32 paragraph (1) letter d is the implementation of a review by the External Review Provider regarding the selection of Sustainability KPIs and the establishment of Target Calibration Key (TKK) at least:
a. the relevance and reliability of the selected Sustainability KPIs; b. the rationality and level of ambition of the Target Calibration Key (TKK);
c. the relevance and reliability of the benchmarks used; and
d. the credibility of the strategy to achieve the Sustainability KPIs.

Paragraph 5
Reporting

Article 37
(1) Reporting as referred to in Article 32 paragraph (1) letter e is carried out through reports containing information on the achievement of Sustainability KPIs and Target Calibration Key (TKK) that have been established, which must be provided by the Issuer or Issuer 1 (one) time in 1 (one) year. (2) Issuers or Issuers must establish policies and/or mechanisms in providing information as referred to in paragraph (1).

Third Section
External Review Provider Review Obligations

Article 38
(1) Issuers or Issuers who issue Sustainability-Related Debt-Related Securities as referred to in Article 4 letter e must obtain the results of a review from the External Review Provider stating:
a. the policy framework for issuance as referred to in Article 32 paragraph (2) is adequate and credible; b. the selected or formulated Sustainability KPIs are relevant, measurable, and reliable;
c. the Target Calibration Key (TKK) for each Sustainability KPI has an adequate level of ambition and rationality;
d. the benchmarks and bases used are relevant and reliable; and e. the strategy to achieve the Sustainability KPIs is credible.
(2) In the event that there are changes in the scope, methodology of Sustainability KPIs, or calibration of the Target Calibration Key (TKK) after the issuance of Sustainability-Related Debt-Related Securities, the Issuer or Issuer must obtain a review from the External Review Provider as referred to in paragraph (1).

Fourth Section
Registration Statement Documents or Issuance Documents Without Public Offering

Article 39
The Registration Statement Document for the Public Offering of Sustainability-Related Debt-Related Securities must be accompanied by additional documents consisting of:
a. a letter of commitment from the Issuer or Issuer to fulfill the Sustainability KPIs that have been selected or formulated according to Format 3 as contained in the Appendix which is an integral part of this Financial Services Authority Regulation; b. the policy framework for the issuance of Sustainability-Related Debt-Related Securities as referred to in Article 32 paragraph (2);
c. the results of the review from the External Review Provider as referred to in Article 38 paragraph (1); and
d. evidence of the competence or expertise of the External Review Provider.

Part Five
Prospectus and Issuance Information Memorandum
Article 40
The Prospectus or Issuance Information Memorandum for Sustainability-Linked Debt Securities and Sukuk must disclose in a separate chapter additional information in the form of:
a. a summary of the Sustainability-Linked Debt Securities and Sukuk Issuance Framework as regulated in Article 32 paragraph (2), which must contain at least:

information regarding Sustainability Impact Targets, containing at least:
a) a clear definition of Sustainability Impact Targets, containing at least:

applicable scope; and
calculation methodology.
b) the rationale and process for selecting Sustainability Impact Targets, as well as their alignment with the Issuer's or Issuer's sustainability strategy; and c) the alignment of Sustainability Impact Targets with sustainable development goals.

Information regarding Sustainability Performance Targets, containing at least:
a) strategic information that can affect the achievement of Sustainability Performance Targets; b) description and definition of Sustainability Performance Targets; c) the basis for the established Sustainability Performance Targets, namely the achievement targets and consistency with the Issuer's or Issuer's overall strategic planning; d) relevant benchmark approaches; e) the timeframe for achieving targets, including target observation dates/periods, and the frequency of Sustainability Performance Targets; f) if possible and considering competition and confidentiality, how the Issuer or Issuer achieves Sustainability Performance Targets; and g) other key factors outside the direct control of the Issuer or Issuer that can affect the achievement of Sustainability Performance Targets.
Characteristics of the Debt Securities and Sukuk, containing at least:
a) variations in compensation for Sustainability-Linked Debt Securities and Sukuk and/or their characteristics; and b) fallback mechanisms in case Sustainability Performance Targets cannot be calculated or observed well/satisfactorily. b. a summary of the review results from the External Review Provider as referred to in Article 38 paragraph (1).

Part Six
Reports
Article 41
(1) Issuers or Issuers issuing Sustainability-Linked Debt Securities and Sukuk must submit reports as referred to in Article 37, containing at least:
a. current information regarding the achievement or performance of Sustainability Impact Targets and Sustainability Performance Targets, including related impacts and timing of events; and b. other information enabling investors to monitor the level of achievement of Sustainability Performance Targets. (2) Reports as referred to in paragraph (1) must receive review from the External Review Provider. (3) Issuers must submit reports as referred to in paragraph (1) to the Financial Services Authority attached to the annual report. (4) Submission of reports as referred to in paragraph (3) follows the submission period of the Issuer's annual report to the Financial Services Authority. (5) Submission of reports as referred to in paragraph (1) for the first time must comply with the provisions:
a. for Issuers, following the provisions as referred to in Article 22 paragraphs (7) to (9); and b. for Issuers, following the provisions as referred to in Article 22 paragraph (11).
(6) Issuers must submit reports as referred to in paragraph (1) with the provisions:
a. submitted to the Financial Services Authority at the latest by the end of the fourth month after the fiscal year ends; and b. submitted to the Monitoring Agent for publication on the Monitoring Agent's website, if using a Monitoring Agent. (7) Submission of reports as referred to in paragraph (1) must be carried out until the Sustainability-Linked Debt Securities and Sukuk mature.

Part Seven
Impact of Achieving Sustainability Impact Targets
Article 42
(1) In the event that the report as referred to in Article 41 states that Sustainability Impact Targets are not achieved according to Sustainability Performance Targets, holders of Sustainability-Linked Debt Securities and Sukuk may request compensation as referred to in Article 35 paragraph (3), which must include at least:
a. buying back the Sustainability-Linked Debt Securities and Sukuk; or b. providing compensation in the form of a coupon increase on the Sustainability-Linked Debt Securities and Sukuk. (2) Provisions regarding the procedure for buyback and provision of compensation, including the magnitude of the coupon increase rate as referred to in paragraph (1), must be included in the trust agreement or agreements related to the interests of holders of Sustainability-Linked Debt Securities and Sukuk. (3) Requests for buyback and/or provision of compensation as referred to in paragraph (1) must be carried out through the Trustee or Monitoring Agent. (4) In the event that the issuance of Sustainability-Linked Debt Securities and Sukuk without a Public Offering does not use a Monitoring Agent, requests for buyback or provision of compensation as referred to in paragraph (1) are submitted to the Issuer. (5) In the event that holders of Sustainability-Linked Debt Securities and Sukuk request the Issuer or Issuer to buy back or provide compensation in the form of a coupon increase on the Sustainability-Linked Debt Securities and Sukuk as referred to in paragraph (1), the Issuer or Issuer must buy back the said Debt Securities and Sukuk or provide compensation in the form of a coupon increase on the Sustainability-Linked Debt Securities and Sukuk. (6) Buyback of Sustainability-Linked Debt Securities and Sukuk by the Issuer or Issuer as referred to in paragraph (3) must be carried out with the provisions:
a. Sustainability-Linked Debt Securities and Sukuk that have been bought back by the Issuer or Issuer as referred to in paragraph (5) cannot be resold by the Issuer or Issuer; b. the buyback pricing mechanism is included in the trust agreement or agreements related to the interests of holders of Sustainability-Linked Debt Securities and Sukuk; and
c. the implementation of the buyback is completed at the latest 3 (three) months after the Trustee, Monitoring Agent, or holder of Sustainability-Linked Debt Securities and Sukuk submits the buyback request.

Article 43
In carrying out obligations as referred to in Article 42 paragraph (5), the trust agreement or agreements related to the interests of holders of Sustainability-Linked Debt Securities and Sukuk may regulate regarding the Party acting as the guarantor.

CHAPTER IV
PHASED PUBLIC OFFERING OF SUSTAINABILITY-LINKED DEBT SECURITIES AND/OR SUKUK
Article 44
(1) Public Offering of Sustainability-Linked Debt Securities and/or Sukuk may be carried out in phases.
(2) Issuers must follow Financial Services Authority Regulations regarding Continuous Public Offering of Debt Securities and/or Sukuk, unless otherwise specifically regulated in this Financial Services Authority Regulation. (3) Issuers conducting a Phased Public Offering of Sustainability-Linked Debt Securities and/or Sukuk may issue more than 1 (one) Sustainability-Linked Debt Securities and/or Sukuk as referred to in Article 4 with the provisions:
a. the plan for the Phased Public Offering of Sustainability-Linked Debt Securities and/or Sukuk is included in the Prospectus for the Phased Public Offering of Sustainability-Linked Debt Securities and/or Sukuk when submitting the Registration Statement; and b. all issuance requirements for Sustainability-Linked Debt Securities and/or Sukuk have been met in accordance with the Sustainability-Linked Debt Securities and/or Sukuk issued at the time of submitting the Registration Statement.

Article 45
(1) The Phased Public Offering of Sustainability-Linked Debt Securities and/or Sukuk as referred to in Article 44 paragraph (1) must contain information in the Prospectus on:
a. the outer cover page as follows:

"Prospectus for Phased Public Offering of Sustainability-Linked Debt Securities and/or Sukuk", stating the name of the Sustainability-Linked Debt Securities and/or Sukuk; and
the total amount of funds to be raised and the type of Securities, namely Sustainability-Linked Debt Securities and/or Sukuk, which will be issued during the Phased Public Offering period of Sustainability-Linked Debt Securities and/or Sukuk; and
b. a chapter regarding the Public Offering concerning the contract that will be used, in the event that the Securities issued are Sukuk or Wakaf Sukuk.
(2) The Offering of Sustainability-Linked Debt Securities and/or Sukuk offered in phases must be used to finance or refinance activities in accordance with the type of Sustainability-Linked Debt Securities and/or Sukuk contained in the Prospectus for the Public Offering.

CHAPTER V
EXTERNAL REVIEW PROVIDERS AND INDEPENDENT PARTIES
Article 46
External Review Providers and Independent Parties may provide reviews in the form of:
a. opinion issuance; b. verification;
c. certification; and/or
d. sustainability scoring/rating.

Article 47
(1) External Review Providers and Independent Parties must be independent from the Issuer or Issuer issuing Sustainability-Linked Debt Securities and/or Sukuk.
(2) Issuers or Issuers issuing Sustainability-Linked Debt Securities and/or Sukuk must ensure the independence of External Review Providers and Independent Parties from the Issuer or Issuer.

Article 48
In providing reviews as referred to in Article 46, External Review Providers and Independent Parties must contain at least:
a. a general overview regarding the objectives, scope of assignment, and competencies possessed by External Review Providers and Independent Parties; b. a statement regarding the independence of External Review Providers and Independent Parties and policies related to conflicts of interest;
c. analytical approaches and/or methodologies used; and
d. conclusions on the review results.

Article 49
In providing reviews as referred to in Article 46, External Review Providers and Independent Parties must ensure the fulfillment of values:
a. integrity; b. objectivity;
c. professional competence and due care;
d. confidentiality; and e. professional behavior.

CHAPTER VI
INCENTIVES
Article 50
(1) The Financial Services Authority may provide incentives for Issuers and Issuers issuing Sustainability-Linked Debt Securities and/or Sukuk.
(2) The provision of incentives as referred to in paragraph (1) is determined by the Financial Services Authority.

Article 51
The provision of incentives as referred to in Article 50 does not apply in the event:
a. business activities and/or other activities financed by Environmental Debt Securities and Sukuk, Social Debt Securities and Sukuk, and/or Sustainability-Linked Debt Securities and Sukuk no longer meet the requirements as Green Bonds and/or Social Bonds; b. activities/projects financed by Wakaf Sukuk no longer meet the requirements as activities/projects to optimize the Benefits of Wakaf Assets; or
c. Sustainability Impact Targets established by the Issuer or Issuer of Sustainability-Linked Debt Securities and Sukuk are no longer implemented.

CHAPTER VII
ADMINISTRATIVE SANCTIONS
Article 52
(1) Any Party violating the provisions as referred to in Article 3, Article 11, Article 19 paragraph (1), paragraph (3), paragraph (4), Article 20 paragraph (1), paragraph (3), paragraph (4), Article 21 paragraph (1), paragraph (2), paragraph (5), paragraph (6), Article 22 paragraph (1), paragraph (3), paragraph (5), paragraph (7), paragraph (9), paragraph (10), paragraph (11), paragraph (12), Article 23 paragraph (1), paragraph (3), paragraph (5), Article 24, Article 25 paragraph (2), paragraph (3), paragraph (4), Article 26 paragraph (5), paragraph (6), Article 28, Article 29 paragraph (2), paragraph (3), paragraph (4), paragraph (5), paragraph (7), Article 31 paragraph (2), Article 38 paragraph (2), Article 41 paragraph (1), paragraph (2), paragraph (3), paragraph (5), paragraph (6), paragraph (7), Article 42 paragraph (5), paragraph (6), Article 44 paragraph (2), and Article 45 paragraph (2) shall be subject to administrative sanctions. (2) Sanctions as referred to in paragraph (1) are also imposed on Parties causing the violation as referred to in paragraph (1). (3) Sanctions as referred to in paragraph (1) and paragraph (2) are imposed by the Financial Services Authority. (4) Sanctions as referred to in paragraph (1) consist of:
a. written warning; b. fines, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; g. cancellation of registration; h. revocation of the effectiveness of the Registration Statement; and/or
i. revocation of individual license.
(5) Administrative sanctions as referred to in paragraph (4) letters b, c, d, e, f, g, h, or i may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (4) letter a. (6) Administrative sanctions in the form of fines as referred to in paragraph (4) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (4) letters c, d, e, f, g, h, or i. (7) The procedure for imposing sanctions as referred to in paragraph (3) is carried out in accordance with applicable legislation.

Article 53
In addition to administrative sanctions as referred to in Article 52 paragraph (4), the Financial Services Authority may take certain actions against any Party violating the provisions of this Financial Services Authority Regulation.

Article 54
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 52 paragraph (4) and certain actions as referred to in Article 53 to the public.

CHAPTER VIII
TRANSITIONAL PROVISIONS
Article 55
Issuers who have issued Environmental Debt Securities before this Financial Services Authority Regulation takes effect shall continue to follow the provisions regulated in Financial Services Authority Regulation Number 60/POJK.04/2017 concerning the Issuance and Requirements for Environmental Debt Securities (Green Bond) (State Gazette of the Republic of Indonesia Year 2017 Number 281, Supplement to the State Gazette of the Republic of Indonesia Number 6149) until the said Environmental Debt Securities mature.

Article 56
Issuers who have conducted a Phased Public Offering of Debt Securities and/or Sukuk in accordance with Financial Services Authority Regulation Number 36/POJK.04/2014 concerning Continuous Public Offering of Debt Securities and/or Sukuk (State Gazette of the Republic of Indonesia Year 2014 Number 378, Supplement to the State Gazette of the Republic of Indonesia Number 5648) before this Financial Services Authority Regulation takes effect, cannot conduct offerings of Sustainability-Linked Debt Securities and/or Sukuk for the next stage in the remaining time within the period of the Continuous Public Offering of Debt Securities and/or Sukuk mentioned.

Article 57
In the event that Independent Parties as referred to in Article 14, Article 21 paragraph (5), and Article 23 paragraph (3) are not yet available at the time this Financial Services Authority Regulation takes effect, reviews of Wakaf Sukuk as referred to in Article 14, Article 21 paragraph (5), and Article 23 paragraph (3) shall be conducted by the Sharia Supervisory Board or Sharia Expert Team.

CHAPTER IX
CLOSING PROVISIONS
Article 58
At the time this Financial Services Authority Regulation takes effect, Financial Services Authority Regulation Number 60/POJK.04/2017 concerning the Issuance and Requirements for Environmental Debt Securities (Green Bond) (State Gazette of the Republic of Indonesia Year 2017 Number 281, Supplement to the State Gazette of the Republic of Indonesia Number 6149) is repealed and declared invalid.

Article 59
This Financial Services Authority Regulation takes effect on the date of its promulgation.

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

To ensure everyone knows, order the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Determined in Jakarta on October 5, 2023
CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

Promulgated in Jakarta on October 10, 2023
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2023 NUMBER 32/OJK

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 18 OF 2023
CONCERNING
ISSUANCE AND REQUIREMENTS FOR SUSTAINABILITY-LINKED DEBT SECURITIES AND SUKUK

I. GENERAL
The capital market as one of the sources of national development financing plays a very important role in increasing equity, growth, and national economic stability towards increasing people's welfare. However, national development using resources excessively can increase social gaps and cause environmental damage. The Indonesian Government through long-term development strategies outlined in the Long-Term Development Plan (RPJP) for 2005-2025 states that the national development vision for 2005-2025 is to achieve an independent, advanced, just, and prosperous Indonesia. The realization of this national development vision is pursued through 8 (eight) development missions. Of the 8 (eight) missions, 2 (two) are related to sustainable development, namely realizing more equitable and just development and realizing a fresh and sustainable Indonesia. The more equitable and just development mentioned is carried out by:

increasing regional development;
reducing social gaps comprehensively, favoring communities, groups, and weak regions/areas;
drastically addressing poverty and unemployment;
providing equal access for communities to various social services and economic infrastructure; and
eliminating discrimination in various aspects including gender.
Meanwhile, the implementation of the mission to realize a fresh and sustainable Indonesia is carried out by:
managing development implementation by maintaining balance between utilization, sustainability, existence, and utility of natural resources and the environment;
sustainable utilization of natural resource and environmental economics; and
maintenance and utilization of biodiversity as the basic capital for development.
Furthermore, sustainable development needs to be supported by innovations in sustainable financial products and services to accelerate the transition to a sustainable financial industry. In the Sustainable Finance Roadmap, one of the things that must be realized is the development of Debt Securities and/or Sukuk whose issuance purpose is towards sustainable economic growth. Financial Services Authority Regulation Number 60/POJK.04/2017 concerning the Issuance and Requirements for Environmental Debt Securities (Green Bond), which serves as the legal basis for Green Bond issuance, only accommodates the issuance of Debt Securities or Sukuk based on environmental aspects, so it is necessary to expand the scope of regulation through the formulation of a new regulation. That in order to provide a legal basis for the development of Debt Securities and/or Sukuk as mentioned above, the Financial Services Authority needs to issue a Financial Services Authority Regulation concerning the Issuance and Requirements for Sustainability-Linked Debt Securities and/or Sukuk. Considering that Sustainability-Linked Debt Securities and/or Sukuk besides Green Bonds are new products in the Indonesian Capital Market, the formulation of this Financial Services Authority Regulation refers to the issuance standards for Sustainability-Linked Debt Securities and/or Sukuk issued by the International Capital Market Association (ICMA). In addition, the formulation of this regulation also refers to standards issued by the ASEAN Capital Markets Forum (ACMF), the SRI Sukuk Framework issued by the Securities Commission Malaysia, and Fatwa of the National Sharia Board Number 131/DSN-MUI/2019 concerning Wakaf Sukuk. The main points of regulation regulated in this Financial Services Authority Regulation include:
the issuance of Sustainability-Linked Debt Securities and/or Sukuk can only be carried out to finance or refinance Green Bonds and/or Social Bonds, projects carried out to optimize the Benefits of Wakaf Assets, and issuances linked to the achievement of Sustainability Impact Targets;
business activities and/or other activities that can be financed from the issuance of Sustainability-Linked Debt Securities and/or Sukuk;
the obligation of Issuers or Issuers to obtain review from External Review Providers according to their competence over business activities and/or other activities financed by the issuance of Sustainability-Linked Debt Securities and/or Sukuk;
the use of funds from Public Offerings and issuance without Public Offering of Sustainability-Linked Debt Securities and/or Sukuk;
obligations to be carried out by Issuers and Issuers in the event that Sustainability-Linked Debt Securities and/or Sukuk no longer become Sustainability-Linked Debt Securities and/or Sukuk; and
provisions regarding Sustainability Impact Targets and Sustainability Performance Targets.

II. ARTICLE BY ARTICLE
Article 1
Clearly sufficient.

Article 2
Clearly sufficient.

Article 3
Paragraph (1)
Legislation in the capital market sector regarding Registration Statements, Public Offerings of Debt Securities and/or Sukuk, and other related regulations for Public Offerings of Debt Securities and/or Sukuk include:
a. Financial Services Authority Regulations regarding Registration Statement documents for Public Offerings of Equity Securities, Debt Securities and/or Sukuk; b. Financial Services Authority Regulations regarding the form and content of prospectuses and short prospectuses for Public Offerings of Debt Securities;
c. Financial Services Authority Regulations regarding Public Offerings of Debt Securities and/or Sukuk to professional investors;
d. Financial Services Authority Regulations concerning the issuance and requirements of sukuk; and e. Financial Services Authority Regulations concerning the application of sustainable finance for financial service institutions, issuers, and public companies. Paragraph (2) Legislation in the capital market sector regarding the Issuance of Debt Securities and/or Sukuk carried out without a Public Offering and other related regulations, including Financial Services Authority Regulations concerning the issuance of Debt Securities and/or Sukuk carried out without a Public Offering.

Article 4
Clearly sufficient.

Article 5
Clearly sufficient.

Article 6
Paragraph (1)
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
Clearly sufficient.
Letter d
Examples of activities/projects to optimize the Benefits of Wakaf Assets include the construction of hospitals or other commercial buildings on wakaf land, the management results of which add value to wakaf beneficiaries. Activities/projects to optimize the Benefits of Wakaf Assets include Green Bonds and/or Social Bonds. Paragraph (2) Clearly sufficient. Paragraph (3) Clearly sufficient.

Article 7
Examples of Benefits of Wakaf Assets include benefits from the use of wakaf land, benefits from the use of wakaf buildings.
Examples of business activities or projects on Wakaf Assets include business activities from companies whose shares are wakaf shares, construction of hospitals on wakaf land.

Article 8
Letter a
What is meant by "renewable energy" is energy sources generated from sustainable energy resources if managed well, including geothermal, wind, bioenergy, solar, water flow and falls, as well as ocean layer movement and temperature differences. Business activities and/or other activities utilizing renewable energy include, among others, the construction of mini hydro plants and the use of solar power for electricity generation.

Letter b
What is meant by "energy efficiency" is steps, methods, or principles expected to enable the efficient use of energy.
Business activities and/or other activities utilizing energy efficiency include, among others:

the construction of new and renovated environmentally friendly buildings, namely by reducing electricity usage for lighting and air circulation, which allows for reduced use of air conditioners;
energy storage;
district heating; or
smart grids.

Letter c
Pollution prevention and control includes, among others, wastewater treatment, air emission reduction including coal phase-out, greenhouse gas control, soil remediation, waste prevention, waste reduction, recycling waste for energy to add product value, waste reconditioning, and environmental monitoring analysis.

Letter d
Sustainable management of biological natural resources and land use includes, among others, sustainable agriculture, sustainable animal husbandry, fisheries, aquaculture, forestry, climate-resilient agriculture, and conservation of biological food plants or irrigation.

Letter e
Conservation of terrestrial and aquatic biodiversity includes, among others, the protection of coastal, marine, and river basin environments.

Letter f
Environmentally friendly transportation includes, among others, electric transportation, hybrid transportation, public transportation, electric trains, non-motorized vehicles, multi-modal transportation, infrastructure for environmentally friendly energy vehicles, and the reduction of harmful emissions.

Letter g
Sustainable water and wastewater management includes, among others, environmentally friendly infrastructure and/or drinking water, urban drainage systems, and various forms of flood mitigation.

Letter h
Climate change adaptation includes, among others, support for information systems such as climate observation and early warning systems.

Letter i
Products that can reduce resource usage and produce less pollution (eco-efficient) include, among others, the development and introduction of environmentally friendly products with eco-labels or environmental certifications, as well as resource-efficient packaging and distribution.

Letter j
Sufficiently clear.

Letter k
Other environmentally conscious business activities and/or other activities include, among others, activities or activities that fall within the green classification in the taxonomy applicable in Indonesia.

Article 9
Paragraph (1)
Letter a
Affordable basic infrastructure, both in terms of access and price, includes, among others, clean drinking water, sewers, sanitation, transportation, and energy.

Letter b
Access to essential services includes, among others, health, education and vocational training, healthcare, financing, and financial services.

Letter c
Sufficiently clear.

Letter d
Sufficiently clear.

Letter e
Food security and sustainable food systems include, among others, safe physical, social, and economic access, health, and food sufficiency meeting standards, reliable agricultural practices, food waste reduction, and increased productivity of small-scale producers.

Letter f
Socio-economic enhancement and empowerment includes, among others, equal access and control over assets, services, resources, and opportunities, as well as equal participation and integration in markets and society, including the reduction of income inequality. Examples of socio-economic enhancement and empowerment activities include mentoring or advocacy for micro-enterprises to enhance their capacity to manage businesses and obtain marketing and financing access.

Letter g
Other socially conscious business activities and/or other activities include, among others, activities or activities that fall within the social classification in the taxonomy applicable in Indonesia.

Paragraph (2)
Target population includes, among others:
a. those living below the poverty line; b. marginal population/communities;
c. persons with disabilities;
d. immigrants/refugees; e. out-of-school communities (undereducated); f. communities with limited access to important goods and services/basic needs; g. the unemployed; h. women in relation to gender equality;
i. aging populations or vulnerable youth;
j. other vulnerable groups, including due to natural disasters; and k. communities meeting criteria as regulated in applicable legislation.

Article 10
Letter a
Internal processes include, among others, steps taken by the Issuer or Issuing Entity to determine the environmental goals to be achieved, the selection process used such as identification, assessment, selection, and/or determination, including the criteria used and the departments or functions involved.

Letter b
Sufficiently clear.

Article 11
Sufficiently clear.

Article 12
Sufficiently clear.

Article 13
Sufficiently clear.

Article 14
What is meant by "Independent Party" is a party or function formed by an independent institution to develop wakaf (endowment) in Indonesia as regulated in the Law on Wakaf, to provide review of Wakaf Sukuk.

Article 15
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
Sufficiently clear.

Letter d
Evidence of competence or expertise of the External Review Provider includes, among others:

competence or expertise certificates issued by nationally or internationally recognized institutions in the field of sustainability according to the type of debt-related securities and/or Sukuk based on sustainability issued; and
evidence of work experience or active involvement in assessment or review activities.

Article 16
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
See explanation of Article 14.

Letter d
What is meant by "nazhir" (wakif manager) is a party that receives wakaf assets from the wakif (endower) to manage and develop according to its designated purpose.
Nazhir can be an individual nazhir, organizational nazhir, or corporate nazhir.
In the event that the nazhir is an organizational nazhir or corporate nazhir, the submitted competence certification evidence consists of competence certification evidence from the managers of the organizational nazhir or corporate nazhir.

Letter e
Sufficiently clear.

Letter f
What is meant by "wakaf deed" is evidence of the wakif's declaration of intent to endow his assets to be managed by the nazhir according to the designated purpose of the wakaf assets, stated in the form of a deed.

Article 17
Letter a
Number 1
Sufficiently clear.

Number 2
Example 1:
When Environmental EBUS is used for financing or refinancing the construction of green buildings, the benefit objective of KUBL (Environmentally Conscious Business Activities) is to support government programs, including the reduction of carbon dioxide (CO2) emissions, electricity energy savings, and water consumption savings.

Example 2:
When Social EBUS is used for financing or refinancing the construction of affordable housing, the benefit objective of KUBS (Socially Conscious Business Activities) is to facilitate low-income communities and/or communities meeting criteria for obtaining housing as regulated in applicable legislation.

Letter b
Sufficiently clear.

Letter c
Sufficiently clear.

Article 18
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
See explanation of Article 14.

Letter d
Sufficiently clear.

Article 19
Paragraph (1)
Sufficiently clear.

Paragraph (2)
What is meant by "issuance theme" is the type of Debt-Related Securities and/or Sukuk Based on Sustainability such as Environmental EBUS, Social EBUS, or Sustainability EBUS.
Example of change in fund usage from the construction of green buildings to the construction of mini hydro power plants.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Article 20
Sufficiently clear.

Article 21
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
See explanation of Article 14.

Paragraph (6)
Sufficiently clear.

Article 22
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
What is meant by "changes in the realization of business activities and/or other activities" is changes in the realization of activities or project changes other than changes in business activities and/or other activities that cause such business activities and/or other activities to no longer meet KUBL and/or KUBS. Example:
Changes in the realization of activities or projects in KUBL involving changes in contract models related to the construction of mini hydro power plants, originally using the "turnkey" model to the "long term service agreement" model.

Letter d
What is meant by "impact of KUBL and/or KUBS financed" includes but is not limited to the benefits of business activities and/or other activities underlying the issuance of the said securities for the environment and/or to address or mitigate social problems and/or provide benefits to the target population.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Sufficiently clear.

Paragraph (7)
Example:
Environmental EBUS, Social EBUS, and/or Sustainability EBUS received an effectiveness statement from the Financial Services Authority on June 20, 2023. The Issuer has the obligation to conduct periodic review no later than December 31, 2023, so that the report is attached to the annual report submitted to OJK on April 30, 2024.

Paragraph (8)
Example:
Environmental EBUS received an effectiveness statement from the Financial Services Authority on July 20, 2023. The Issuer has the obligation to conduct periodic review no later than December 31, 2024, so that the report is attached to the annual report submitted to the Financial Services Authority on April 30, 2025.

Paragraph (9)
Sufficiently clear.

Paragraph (10)
Sufficiently clear.

Paragraph (11)
Example a:
Environmental EBUS was registered in custody on June 30, 2023. The Issuer has the obligation to conduct periodic review no later than December 31, 2023, so that the report is submitted to the Financial Services Authority on April 30, 2024.

Example b:
Environmental EBUS was registered in custody on July 20, 2023. The Issuer has the obligation to conduct periodic review no later than December 31, 2024, so that the report submitted to the Financial Services Authority is on April 30, 2025.

Paragraph (12)
Sufficiently clear.

Article 23
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
See explanation of Article 14.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Article 24
Sufficiently clear.

Article 25
Sufficiently clear.

Article 26
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Issuer criteria in the issuance of Environmental EBUS, Social EBUS, and/or Sustainability EBUS without Public Offering that do not use a Monitoring Agent, follow regulations as regulated in Financial Services Authority regulations regarding the issuance of debt-related securities and/or Sukuk conducted without through Public Offering.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Sufficiently clear.

Article 27
What is meant by "guarantor" is a party who is able to guarantee according to the obligations or capabilities of the guarantee.

Article 28
Sufficiently clear.

Article 29
Sufficiently clear.

Article 30
Other events that have a significant impact include, among others, changes in government policy, pandemics, and non-natural disasters.

Article 31
Paragraph (1)
General objectives of the Issuer or Issuing Entity include, among others, increasing corporate working capital and business expansion activities.

Paragraph (2)
What is meant by "linked to Sustainability KPIs" is the issuance of the said EBUS accompanied by the commitment of the Issuer or Issuing Entity to achieve the Sustainability KPIs that have been established.

Article 32
Sufficiently clear.

Article 33
Paragraph (1)
Letter a
What is meant by "relevant" is Sustainability KPIs that will be selected by the Issuer or Issuing Entity closely related to the main business activities of the Issuer or Issuing Entity. What is meant by "core" is Sustainability KPIs that will be selected by the Issuer or Issuing Entity referring to the sustainability strategy of the Issuer. What is meant by "material" is Sustainability KPIs that will be selected by the Issuer or Issuing Entity having a material impact on the performance of the Issuer or Issuing Entity. As an example, KPIs that are relevant, core, material, and strategic for issuers in the consumer non-cyclicals sector and sub-sector of personal care products include, among others, total energy usage, total greenhouse gas emissions produced (scope 1, 2, and 3) either absolute or intensity, proportion of reused/recovered/recycled water, proportion of products produced from recycled and/or renewable materials. The Issuer or Issuing Entity may select or compile Sustainability KPIs by referring to Sustainability KPIs disclosed in annual reports, sustainability reports, and non-financial reports that have been published, thereby enabling investors to evaluate historical performance of the selected or compiled KPIs. In the event that the Issuer or Issuing Entity has never previously disclosed Sustainability KPIs, the Issuer or Issuing Entity provides verified Sustainability KPI values for at least the last 3 (three) years, if possible.

Letter b
Sufficiently clear.

Letter c
What is meant by "comparable" is to attempt using references or definitions from external sources to facilitate assessment of the ambition level of KTK (Key Target Criteria).

Letter d
Sufficiently clear.

Paragraph (2)
Letter a
Sufficiently clear.

Letter b
What is meant by "calculation methodology" is a clear definition of the intensity denomination of Sustainability KPIs, definition of baseline used, if possible science-based or industry standard benchmarks such as the SMART approach (specific, measurable, attainable, relevant, and time-bound).

Paragraph (3)
What is meant by "aligned with sustainable development goals" is any Sustainability KPIs established by the Issuer or Issuing Entity that support and are in line with sustainable development goals. In practice, what is meant by "sustainable development goals" is Sustainable Development Goals (SDGs) established by the United Nations Development Programme.

Paragraph (4)
Sufficiently clear.

Article 34
Paragraph (1)
In setting KTK for each Sustainability KPI, it can be done by determining 1 (one) or more KTK for each Sustainability KPI.

Paragraph (2)
Letter a
In representing significant improvement, the Issuer is expected to describe significant improvements in target achievement over a certain period of time as a representation of ambitious achievement of Sustainability KPI targets.

Letter b
Sufficiently clear.

Letter c
Sufficiently clear.

Letter d
Sufficiently clear.

Paragraph (3)
Letter a
Sufficiently clear.

Letter b
What is meant by "KTK position against peer companies" is the relative position of the Issuer's KTK compared to other companies, viewed from average performance and best-in-class performance, and compared to industry or sector standards.

Letter c
What is meant by "scientific references" includes, among others, net-zero targets consistent with the Paris Agreement, sustainable development goals (SDGs), recognized best technologies, science-based scenarios, and other scientific references.

Paragraph (4)
Sufficiently clear.

Article 35
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Letter a
Sufficiently clear.

Letter b
Fallback mechanism is a condition to determine how and when the Issuer or Issuing Entity is allowed to recalculate or adjust proforma regarding the scope of KPIs and KTK.
The Issuer or Issuing Entity may disclose matters to consider potential extraordinary events or extreme events, including drastic changes in regulatory scope that can have a large impact on the calculation and adjustment of Sustainability KPIs, KTK, and/or proforma baseline.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Article 36
Sufficiently clear.

Article 37
Sufficiently clear.

Article 38
Sufficiently clear.

Article 39
Sufficiently clear.

Article 40
Sufficiently clear.

Article 41
Sufficiently clear.

Article 42
Sufficiently clear.

Article 43
See explanation of Article 27.

Article 44
Sufficiently clear.

Article 45
Sufficiently clear.

Article 46
Letter a
What is meant by "opinion giving" is the provision of opinions on matters required in this Financial Services Authority Regulation, including the credibility of the issuance policy framework, and the benefits of KUBL and/or KUBS financed.

Letter b
What is meant by "verification" is conducting verification on a series of criteria related to performance, environment, social, sustainability, or KPIs and KTK that have been compiled by the Issuer or Issuing Entity. Verification can be conducted by considering economic activity/business activity classification guidelines, including the taxonomy applicable in Indonesia.

Letter c
What is meant by "certification" is providing certification on the framework of debt-related securities and/or Sukuk based on sustainability, the use of proceeds from issuance, KPIs, or KTK based on recognized standards.

Letter d
What is meant by "sustainability scoring/rating" is providing scores or ratings on the framework of debt-related securities and/or Sukuk based on sustainability, the use of proceeds from issuance, KPIs, or calibration of the level of confidence of KTK based on specific scoring or rating methodologies. The methodology used refers to international standards issued by ICMA, ACMF, or other standards.

Article 47
Sufficiently clear.

Article 48
Sufficiently clear.

Article 49
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
What is meant by "professional competence" is competence proven by:

having competence or expertise certificates issued by nationally or internationally recognized institutions in the field of sustainability according to the type of debt-related securities and/or Sukuk issued; and
having experience and expertise that can be proven by work experience or active involvement in assessment or review activities.

Letter d
Sufficiently clear.

Letter e
Sufficiently clear.

Article 50
Sufficiently clear.

Article 51
Sufficiently clear.

Article 52
Sufficiently clear.

Article 53
What is meant by "specific actions" includes, among others, the postponement of the effectiveness statement, for example, the effectiveness statement for Public Offering of Sustainability-linked EBUS.

Article 54
Sufficiently clear.

Article 55
Sufficiently clear.

Article 56
Sufficiently clear.

Article 57
Sufficiently clear.

Article 58
Sufficiently clear.

Article 59
Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 55/OJK

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 18 OF 2023
CONCERNING
THE ISSUANCE AND REQUIREMENTS FOR DEBT-RELATED SECURITIES AND/OR SUKUK BASED ON SUSTAINABILITY

Format 1
ISSUER OR ISSUING ENTITY COMMITMENT STATEMENT FOR USING PROCEEDS FROM PUBLIC OFFERING OR ISSUANCE WITHOUT PUBLIC OFFERING OF ENVIRONMENTAL EBUS, SOCIAL EBUS, AND SUSTAINABILITY EBUS FOR KUBL AND/OR KUBS

I, the undersigned below (Chief Executive Director/Board Member authorized to represent the Issuer or Issuing Entity according to the Articles of Association) *) representing:
Issuer/Issuing Entity *) : …………………………………………………………….
Business Activity : …………………………………………………………….
Address : …………………………………………………………….
Telephone and Fax : …………………………………………………………….

For Public Offering or issuance … (specify the debt-related securities and/or Sukuk based on sustainability offered) amounting to …. hereby states that it is committed to using the proceeds from Public Offering or issuance without Public Offering … (specify the debt-related securities and/or Sukuk based on sustainability offered) to finance or refinance Environmentally Conscious Business Activities (KUBL) and/or Socially Conscious Business Activities (KUBS).

… (place), … (date, month, year)
(Chief Executive Director/Board Member authorized to represent the Issuer or Issuing Entity according to the Articles of Association)*) ……………………………………..
*) strike out what is not needed.
Stamp Duty

Format 2
ISSUER OR ISSUING ENTITY COMMITMENT STATEMENT FOR USING PROCEEDS FROM PUBLIC OFFERING OR ISSUANCE WITHOUT PUBLIC OFFERING OF WAKAF SUKUK FOR ACTIVITIES/PROJECTS TO OPTIMIZE THE BENEFITS OF WAKAF ASSETS

For Public Offering of Wakaf Sukuk or issuance of Wakaf Sukuk without Public Offering*) amounting to …. hereby states that it is committed to using the proceeds from Public Offering of Wakaf Sukuk or issuance without Public Offering of Wakaf Sukuk *) to finance or refinance activities/projects carried out to optimize the Benefits of Wakaf Assets in the issuance of Wakaf Sukuk.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja

Format 3
ISSUER OR ISSUING ENTITY COMMITMENT STATEMENT TO FULFILL SELECTED OR COMPILED SUSTAINABILITY KPIs

For Public Offering of Sustainability-linked EBUS or issuance of Sustainability EBUS without Public Offering*) amounting to …. hereby states that it is committed to implementing and achieving the performance of Sustainability KPIs and KTK that have been selected or compiled.

Established in Jakarta on October 5, 2023
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
OF THE REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR
Stamp Duty