Maximum Limit for Credit Provision by Rural Credit Banks and Maximum Limit for Fund Disbursement by Sharia Rural Financing Banks

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 23 OF 2022
CONCERNING
MAXIMUM LIMIT FOR CREDIT PROVISION BY RURAL CREDIT BANKS AND MAXIMUM LIMIT FOR FUND DISBURSEMENT BY SHARIA RURAL FINANCING BANKS BY THE GRACE OF GOD THE ALMIGHTY, THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that to support more optimal economic growth, rural credit banks and sharia rural financing banks need to increase credit or financing to the real sector while still paying attention to prudential principles and risk management; b. that to support prudential principles and risk management in the provision or disbursement of funds, one of which is through the management of the concentration of fund provision by rural credit banks and the disbursement of funds by sharia rural financing banks to individual borrowers or groups of borrowers or groups of facility recipients, so that the risk of providing or disbursing funds is not concentrated on specific individual borrowers or groups of facility recipients;
c. that to maintain stability and encourage the improvement of the performance of rural credit banks and sharia rural financing banks, the Financial Services Authority supports efforts by rural credit banks and sharia rural financing banks to address potential and/or liquidity problems of rural credit banks and other sharia rural financing banks;
d. that to increase the application of prudential principles and risk management in the provision or disbursement of funds and to align with the latest regulations applicable to rural credit banks and sharia rural financing banks, it is necessary to improve regulations regarding the maximum limit for credit provision by rural credit banks and the maximum limit for fund disbursement by sharia rural financing banks; e. that based on considerations as referred to in letters a, b, c, and d, it is necessary to establish a Financial Services Authority Regulation concerning the Maximum Limit for Credit Provision by Rural Credit Banks and the Maximum Limit for Fund Disbursement by Sharia Rural Financing Banks;

Recalling:

1. Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1992 Number 31, Supplement to the State Gazette of the Republic of Indonesia Number 3472) as amended by Law Number 10 of 1998 concerning Amendments to Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1998 Number 182, Supplement to the State Gazette of the Republic of Indonesia Number 3790);
2. Law Number 21 of 2008 concerning Sharia Banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette of the Republic of Indonesia Number 4867);
3. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);

DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING MAXIMUM LIMIT FOR CREDIT PROVISION BY RURAL CREDIT BANKS AND MAXIMUM LIMIT FOR FUND DISBURSEMENT BY SHARIA RURAL FINANCING BANKS.

CHAPTER I
GENERAL PROVISIONS

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

1. Rural Credit Bank, hereinafter abbreviated as BPR, is a conventional bank whose activities do not provide payment circulation services.
2. Sharia Rural Financing Bank, hereinafter abbreviated as BPRS, is a sharia bank whose activities do not provide payment circulation services.
3. Board of Directors is the board of directors for BPRs and BPRSs in the form of limited liability companies, regional public enterprises, regional joint-stock companies, regional enterprises, or management for BPRs in the form of cooperative legal entities.
4. Board of Commissioners is the board of commissioners for BPRs and BPRSs in the form of limited liability companies, or commissioners for BPRs in the form of regional joint-stock company legal entities, supervisory boards for BPRs in the form of regional public enterprise and regional enterprise legal entities, and supervisors for BPRs in the form of cooperative legal entities.
5. Maximum Limit for Credit Provision, hereinafter abbreviated as BMPK, is the maximum percentage of realization of fund provision permitted against BPR capital.
6. Maximum Limit for Fund Disbursement, hereinafter abbreviated as BMPD, is the maximum percentage of realization of fund disbursement permitted against BPRS capital.
7. Fund Provision is the investment of BPR funds in the form of credit, and/or interbank fund placement.
8. Fund Disbursement is the investment of BPRS funds in the form of financing, and/or interbank fund placement.
9. Credit is the provision of money or debt claims that can be equated with it, based on a loan agreement between the BPR and the borrower, which obligates the borrower to repay their debt after a certain period with interest.
10. Financing is the provision of funds or debt claims equated with it in the form of profit-sharing transactions, leasing transactions including service leasing, sales transactions, and loan transactions based on an agreement between the BPRS and other parties, which obligates the financed party and/or the party given financial facilities to return the funds after a certain period with profit-sharing, ujrah, margin, or without compensation.
11. Interbank Fund Placement for BPR is the investment of funds in other banks in the form of current accounts, savings, time deposits, deposit certificates, provided credits, and other similar fund investments.
12. Interbank Fund Placement for BPRS is the investment of funds in conventional sharia banks, sharia business units, or other BPRSs based on sharia principles in the form of current accounts, savings, deposits, deposit certificates, provided financing, and other fund placements in accordance with sharia principles, as well as in conventional commercial banks in the form of current accounts and/or savings for the purpose of fund transfers for BPRSs and BPRS customers.
13. Capital is core capital and supplementary capital as referred to in the Financial Services Authority Regulation concerning minimum capital provision obligations and minimum core capital fulfillment for BPRs or the Financial Services Authority Regulation concerning minimum capital provision obligations and minimum core capital fulfillment for BPRSs.
14. Related Party is an individual, company, or body that has a controlling relationship with the BPR or BPRS, directly or indirectly, through ownership, management, and/or financial relationships.
15. Unrelated Party is an individual, company, or body that does not have a controlling relationship with the BPR or BPRS, directly or indirectly, through ownership, management, and/or financial relationships.
16. BMPK or BMPD Violation is the excess difference between the percentage of Fund Provision or Fund Disbursement realized against BPR or BPRS capital at the time of realization and the permitted BMPK or BMPD, using the capital position of the last month before the realization of Fund Provision or Fund Disbursement.
17. BMPK or BMPD Exceedance is the excess difference between the percentage of Fund Provision or Fund Disbursement that has been realized against BPR or BPRS capital and the permitted BMPK or BMPD at the reporting date, excluding BMPK or BMPD Violations.
18. Borrower is an individual, company, or body that obtains Fund Provision from the BPR.
19. Facility Recipient Customer is an individual, company, or body that obtains Fund Disbursement from the BPRS.

Article 2
BPRs and BPRSs are required to apply prudential principles in providing Fund Provision to Borrowers or Fund Disbursement to Facility Recipient Customers.

Article 3
(1) BPRs and BPRSs are prohibited from making agreements or setting requirements that obligate BPRs and BPRSs to provide Fund Provision or Fund Disbursement that would result in a BMPK or BMPD Violation.
(2) BPRs and BPRSs are prohibited from providing Fund Provision or Fund Disbursement that results in a BMPK or BMPD Violation.

Article 4
(1) BPRs or BPRSs that violate the provisions as referred to in Article 2 and/or Article 3 shall be subject to administrative sanctions in the form of written reprimands.
(2) In the event that BPRs or BPRSs:
a. have been subject to administrative sanctions as referred to in paragraph (1) and continue to violate the provisions as referred to in Article 2 and/or Article 3; or b. have not been subject to administrative sanctions as referred to in paragraph (1) but based on the Financial Services Authority's assessment there is a significant violation requiring immediate sanctions, BPRs or BPRSs may be subject to administrative sanctions in the form of a downgrade of the BPR or BPRS health level. (3) In the event that BPRs or BPRSs:
a. have been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) but continue to violate the provisions as referred to in Article 2 and/or Article 3; or b. have not been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) but based on the Financial Services Authority's assessment there is a significant violation requiring immediate sanctions, the principal parties of the BPR or BPRS may be subject to administrative sanctions in the form of a prohibition from acting as principal parties in accordance with the Financial Services Authority Regulation concerning re-evaluation of principal parties of financial service institutions.

CHAPTER II
BASIS FOR CALCULATING BMPK AND BMPD

Article 5
(1) BMPK for Credit and BMPD for Financing are calculated based on the debit balance of Credit or the debit balance of Financing.
(2) BMPK and BMPD for Interbank Fund Placement in other BPRs or BPRSs are calculated based on the nominal value of Interbank Fund Placement.

CHAPTER III
BMPK AND BMPD FOR RELATED PARTIES

Article 6
(1) Fund Provision or Fund Disbursement to all Related Parties is set at a maximum of 10% (ten percent) of BPR or BPRS capital.
(2) Further provisions regarding the calculation of BMPK or BMPD for Related Parties are determined by the Financial Services Authority.

Article 7
Fund Provision in the form of Credit or Fund Disbursement in the form of Financing to Related Parties must obtain approval from 1 (one) member of the Board of Directors and 1 (one) member of the Board of Commissioners of the BPR or BPRS.

Article 8
(1) Related Parties include:
a. individuals or companies that are controllers of the BPR or BPRS; b. members of the Board of Directors;
c. members of the Board of Commissioners;
d. parties having a family relationship up to the second degree, both horizontal and vertical, from:

1. individuals who are controllers of the BPR or BPRS as referred to in letter a; and
2. members of the Board of Directors and/or members of the Board of Commissioners in the BPR or BPRS as referred to in letters b and/or c;
   e. executive officials; f. non-bank companies owned by parties as referred to in letters a through e, where ownership, either individually or collectively, is at least 25% (twenty-five percent) of the company's paid-up capital; g. other BPRs or BPRSs owned by parties as referred to in letters a through e, where individual ownership is at least 10% (ten percent) of the paid-up capital in such other BPR or BPRS; h. other BPRs or BPRSs where:
3. their Board of Commissioners members concurrently hold positions as members of the Board of Commissioners of the BPR or BPRS; and
4. the concurrent positions in such other BPR or BPRS amount to at least 50% (fifty percent) of the total number of Board of Directors and Board of Commissioners members in the BPR or BPRS;
   i. companies where at least 50% (fifty percent) of the total number of Board of Directors and Board of Commissioners members are members of the Board of Commissioners of the BPR or BPRS; and
   j. Borrowers or Facility Recipient Customers who are guaranteed by parties as referred to in letters a through i.
   (2) Controllers as referred to in paragraph (1) letter a are individuals or companies that directly or indirectly:
   a. own 10% (ten percent) or more of the shares of the BPR or BPRS individually or collectively; b. take actions to achieve common goals in controlling the BPR or BPRS, with or without a written agreement, so that they collectively control and/or own 10% (ten percent) or more of the shares of the BPR or BPRS;
   c. have the authority and/or ability to approve, appoint, and/or dismiss members of the Board of Commissioners and/or members of the Board of Directors of the BPR or BPRS; and/or
   d. have the ability to determine the strategic policies of the BPR or BPRS.
   (3) Further provisions regarding individuals or companies that meet the controller criteria as Related Parties are determined by the Financial Services Authority.

Article 9
In the event that Fund Provision or Fund Disbursement to parties other than those referred to in Article 8 is used for the benefit of Related Parties, such Fund Provision or Fund Disbursement may be categorized as Fund Provision or Fund Disbursement to Related Parties.

Article 10
(1) BPRs or BPRSs that violate the provisions as referred to in Article 7 shall be subject to administrative sanctions in the form of written reprimands.
(2) In the event that BPRs or BPRSs:
a. have been subject to administrative sanctions as referred to in paragraph (1) and continue to violate the provisions as referred to in Article 7; or b. have not been subject to administrative sanctions as referred to in paragraph (1) but based on the Financial Services Authority's assessment there is a significant violation requiring immediate sanctions, BPRs or BPRSs may be subject to administrative sanctions in the form of a downgrade of the BPR or BPRS health level. (3) In the event that BPRs or BPRSs:
a. have been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) but continue to violate the provisions as referred to in Article 7; or b. have not been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) but based on the Financial Services Authority's assessment there is a significant violation requiring immediate sanctions, the principal parties of the BPR or BPRS may be subject to administrative sanctions in the form of a prohibition from acting as principal parties in accordance with the Financial Services Authority Regulation concerning re-evaluation of principal parties of financial service institutions.

CHAPTER IV
BMPK AND BMPD FOR UNRELATED PARTIES

Article 11
(1) Fund Provision in the form of Credit or Fund Disbursement in the form of Financing to 1 (one) Unrelated Borrower or Unrelated Facility Recipient Customer is set at a maximum of 20% (twenty percent) of BPR or BPRS capital. (2) Fund Provision in the form of Credit or Fund Disbursement in the form of Financing to 1 (one) group of Unrelated Borrowers or group of Unrelated Facility Recipient Customers is set at a maximum of 30% (thirty percent) of BPR or BPRS capital. (3) Further provisions regarding the calculation of BMPK or BMPD for Unrelated Parties are determined by the Financial Services Authority.

Article 12
(1) BPRs and BPRSs are required to classify Borrowers or Facility Recipient Customers into groups of Borrowers or groups of Facility Recipient Customers as referred to in Article 11 paragraph (3) for Borrowers or Facility Recipient Customers who have connections with other Borrowers or Facility Recipient Customers through ownership, management, and/or financial relationships. (2) Ownership, management, and/or financial relationships as referred to in paragraph (1) include the following criteria:
a. companies where each has at least 25% (twenty-five percent) of its paid-up capital owned by a company, business entity, or individual, or collectively by a family; b. companies where one owns at least 25% (twenty-five percent) of the paid-up capital of the other company;
c. companies where at least 50% (fifty percent) of the total number of Board of Directors and Board of Commissioners members of one company concurrently hold positions as Board of Directors and/or Board of Commissioners members of another company;
d. Borrowers or Facility Recipient Customers who have financial relationships with other Borrowers or Facility Recipient Customers; and/or e. companies and/or individuals where one acts as a guarantor for Credit or Financing received by other companies or individuals.

Article 13
(1) BPRs or BPRSs that violate the provisions as referred to in Article 12 paragraph (1) shall be subject to administrative sanctions in the form of written reprimands.
(2) In the event that BPRs or BPRSs:
a. have been subject to administrative sanctions as referred to in paragraph (1) and continue to violate the provisions as referred to in Article 12 paragraph (1); or b. have not been subject to administrative sanctions as referred to in paragraph (1) but based on the Financial Services Authority's assessment there is a significant violation requiring immediate sanctions, BPRs or BPRSs may be subject to administrative sanctions in the form of a downgrade of the BPR or BPRS health level. (3) In the event that BPRs or BPRSs:
a. have been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) but continue to violate the provisions as referred to in Article 12 paragraph (1); or b. have not been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) but based on the Financial Services Authority's assessment there is a significant violation requiring immediate sanctions, the principal parties of the BPR or BPRS may be subject to administrative sanctions in the form of a prohibition from acting as principal parties in accordance with the Financial Services Authority Regulation concerning re-evaluation of principal parties of financial service institutions.

CHAPTER V
EXCEEDANCE OF BMPK AND BMPD

Article 14
(1) Fund Provision by BPRs or Fund Disbursement by BPRSs is categorized as BMPK or BMPD Exceedance under conditions of BMPK or BMPD Exceedance caused by:
a. a decrease in BPR or BPRS capital; b. merger, consolidation, takeover, change in ownership structure, and/or change in management that causes a change in Related Parties and/or groups of Borrowers or groups of Facility Recipient Customers; and/or
c. changes in regulations.
(2) Further provisions regarding the calculation of BMPK or BMPD Exceedance are determined by the Financial Services Authority.

CHAPTER VI
RESOLUTION OF BMPK AND BMPD VIOLATIONS AND BMPK AND BMPD EXCEEDANCES

Article 15
(1) BPRs and BPRSs are required to submit action plans for the resolution of:
a. BMPK or BMPD Violations; and/or b. BMPK or BMPD Exceedances.
(2) Action plans for the resolution of BMPK or BMPD Violations as referred to in paragraph (1) letter a must be submitted to the Financial Services Authority at the latest:
a. 20 (twenty) working days after the deadline for submission of BMPK or BMPD reports for the relevant month; or b. 10 (ten) working days since the Financial Services Authority established the BMPK or BMPD Violation. (3) Action plans for the resolution of BMPK or BMPD Exceedances as referred to in paragraph (1) letter b caused by conditions as referred to in Article 14 paragraph (1) letters a and b must be submitted to the Financial Services Authority at the latest:
a. 20 (twenty) working days after the end of the reporting month for the relevant BMPK or BMPD report; or b. 10 (ten) working days since the Financial Services Authority established the BMPK or BMPD Exceedance.
(4) Action plans for the resolution of BMPK or BMPD Exceedances as referred to in paragraph (1) letter b caused by conditions as referred to in Article 14 paragraph (1) letter c must be submitted to the Financial Services Authority at the latest 3 (three) months since the change in regulations took effect.

Article 16
(1) BPRs and BPRSs are required to implement the action plans as referred to in Article 15 paragraph (1) which contain at least steps for the resolution of BMPK or BMPD Violations and/or BMPK or BMPD Exceedances and target completion times. (2) Target completion times as referred to in paragraph (1) are set for:
a. BMPK or BMPD Violations, at the latest 3 (three) months since the action plan was submitted to the Financial Services Authority; b. BMPK or BMPD Exceedances caused by conditions as referred to in Article 14 paragraph (1) letter a, at the latest 9 (nine) months since the action plan was submitted to the Financial Services Authority;
c. BMPK or BMPD Exceedances caused by conditions as referred to in Article 14 paragraph (1) letter b, at the latest 12 (twelve) months since the action plan was submitted to the Financial Services Authority;
d. BMPK or BMPD Exceedances caused by conditions as referred to in Article 14 paragraph (1) letter c, at the latest 18 (eighteen) months since the action plan was submitted to the Financial Services Authority; and e. BMPK or BMPD Violations and/or BMPK or BMPD Exceedances for Interbank Fund Placements that do not have a maturity date in the form of savings at other BPRs or BPRSs, at the latest 20 (twenty) working days since the action plan was submitted to the Financial Services Authority. (3) In the event that the remaining term of Fund Provision or Fund Disbursement until maturity is shorter than the target completion time as referred to in paragraph (2), the target completion time is at the latest until the Fund Provision or Fund Disbursement matures. (4) In the event that the target completion time for the action plan as referred to in paragraph (2) is assessed as unachievable, BPRs and BPRSs, based on approval from the Financial Services Authority, may set target times

resolution of action plans differing from the target completion time for the action plans referred to in paragraph (2).

Article 17
(1) BPR or BPRS that violate the provisions as referred to in Article 15 and/or Article 16 paragraph (1) shall be subject to administrative sanctions in the form of a written reprimand.
(2) In the event that BPR or BPRS have been subjected to administrative sanctions as referred to in paragraph (1) and continue to violate the provisions as referred to in Article 15 and/or Article 16 paragraph (1), they shall be subject to administrative sanctions in the form of:
a. a downgrade in health level; and/or b. a temporary suspension of some operational activities of the BPR or BPRS.
(3) In the event that BPR or BPRS have been subjected to administrative sanctions as referred to in paragraph (1) and/or paragraph (2), and continue to violate the provisions as referred to in Article 15 and/or Article 16 paragraph (1), the principal party of the BPR or BPRS may be subject to sanctions in the form of a prohibition from acting as a principal party in accordance with the Financial Services Authority Regulation regarding re-evaluation of principal parties of financial service institutions.

Article 18
(1) BPR or BPRS that do not resolve BMPK Violations or BMPD Violations and/or BMPK Exceedances or BMPD Exceedances in accordance with the action plan as referred to in Article 16, after being given warnings 2 (two) times by the Financial Services Authority with a grace period of 1 (one) week for each warning, shall be subject to administrative sanctions as referred to in Article 17 paragraph (2) letter b and/or paragraph (3). (2) BPR or BPRS that do not resolve BMPK Violations or BMPD Violations in accordance with the action plan, in addition to being subject to administrative sanctions as referred to in paragraph (1), may be subject to written orders against members of the Board of Directors, members of the Board of Commissioners, shareholders, or other affiliated parties in accordance with the Law regarding the Financial Services Authority. (3) In the event that BPR or BPRS do not execute the written orders as referred to in paragraph (2), BPR or BPRS may be subject to criminal sanctions in accordance with the Law regarding the Financial Services Authority.

Article 19
(1) BPR and BPRS are required to submit reports on the implementation of action plans to resolve BMPK Violations or BMPD Violations and/or BMPK Exceedances or BMPD Exceedances accompanied by supporting evidence.
(2) The report on the implementation of the action plan as referred to in paragraph (1) must be submitted by the BPR or BPRS and received by the Financial Services Authority at the latest 10 (ten) working days since the realization of the action plan.

Article 20
(1) BPR or BPRS that violate the provisions as referred to in Article 19 shall be subject to administrative sanctions in the form of a written reprimand.
(2) In the event that BPR or BPRS:
a. have been subjected to administrative sanctions as referred to in paragraph (1) and continue to violate the provisions as referred to in Article 19; or b. have not been subjected to administrative sanctions as referred to in paragraph (1) but based on the Financial Services Authority's assessment there are violations that are significant so that immediate sanctions are needed, BPR or BPRS may be subject to administrative sanctions in the form of a downgrade in the health level of the BPR or BPRS. (3) In the event that BPR or BPRS:
a. have been subjected to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) but continue to violate the provisions as referred to in Article 19; or b. have not been subjected to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) but based on the Financial Services Authority's assessment there are violations that are significant so that immediate sanctions are needed, the principal party of the BPR or BPRS may be subject to administrative sanctions in the form of a prohibition from acting as a principal party in accordance with the Financial Services Authority Regulation regarding re-evaluation of principal parties of financial service institutions. (4) The imposition of administrative sanctions as referred to in paragraph (1), paragraph (2), and/or paragraph (3) does not eliminate the obligation for BPR or BPRS to submit reports on the implementation of action plans.

CHAPTER VII
TREATMENT OF SPECIFIC BMPK AND BMPD

Article 21
The calculation of BMPK or BMPD is excluded for:
a. Interbank Fund Placement with conventional commercial banks, Sharia commercial banks, and/or Sharia business units, including commercial banks that meet the criteria of Related Parties as referred to in Article 8; b. The portion of Fund Provision or Fund Disbursement that is guaranteed by:

1. collateral in the form of cash collateral in the form of deposits or savings at BPR or BPRS;
2. gold and/or precious metals; and/or
3. Bank Indonesia Certificates;
   c. The portion of Fund Provision or Fund Disbursement that is guaranteed by the Indonesian Government directly or through state-owned enterprises or regional-owned enterprises in accordance with statutory provisions; and
   d. The portion of Interbank Fund Placement with other BPR or BPRS that meet certain requirements.

Article 22
The portion of Fund Provision or Fund Disbursement as referred to in Article 21 letter b that is excluded from the calculation of BMPK or BMPD must meet the following requirements:
a. the collateral is blocked and accompanied by an irrevocable power of attorney for disbursement or sale from the owner of the collateral for the benefit of the BPR or BPRS receiving the collateral, including partial disbursement or sale to pay overdue principal installments or interest for BPR or overdue principal installments, margins, profit-sharing, or ujrah for BPRS; b. the blocking period as referred to in letter a is at least equal to the duration of the Fund Provision or Fund Disbursement; and
c. the collateral as referred to in Article 21 letter b numbers 1 and 2 is stored or accounted for at the relevant BPR or BPRS.

Article 23
The portion of Fund Provision or Fund Disbursement guaranteed by the Indonesian Government directly or through state-owned enterprises or regional-owned enterprises as referred to in Article 21 letter c that is excluded from the calculation of BMPK or BMPD must meet the following requirements:
a. the guarantee is unconditional and irrevocable; b. the disbursement period is in accordance with the guarantee documents;
c. it has a guarantee period of at least equal to the duration of the Fund Provision or Fund Disbursement; and
d. it is not re-guaranteed.

Article 24
The portion of Interbank Fund Placement with other BPR or BPRS as referred to in Article 21 letter d that is excluded from the calculation of BMPK or BMPD must meet requirements including:
a. there is an agreement between:

1. BPR or BPRS that conducts Interbank Fund Placement; and
2. other BPR or BPRS that receive Interbank Fund Placement,
   through a cooperation scheme among other BPR or BPRS as umbrella institutions; and b. to address liquidity difficulties of BPR or BPRS.

Article 25
Fund Provision by BPR in the form of Credit and Fund Disbursement by BPRS in the form of Financing with a core-plasma partnership pattern with a scheme where the core company guarantees Credit or Financing to the plasma, which is excluded from the definition of Borrower Groups or Unrelated Party Facility Recipient Groups as referred to in Article 11 paragraph (3), must meet the following requirements:
a. the core company is not a Related Party with the BPR or BPRS; b. the plasma company is not a subsidiary or branch owned, controlled, or affiliated with the core company;
c. the plasma company produces components required by the core company as part of the core company's production; and
d. the Credit or Financing agreement with the plasma company is conducted directly by the BPR or BPRS with the plasma company.

Article 26
(1) Credit or Financing to:
a. members of the Board of Directors; b. members of the Board of Commissioners; and/or
c. employees of BPR or BPRS who meet the criteria of Related Parties,
which is intended to improve welfare and is repaid from income obtained from the relevant BPR or BPRS, is excluded as the provision of Credit or Financing to Related Parties as referred to in Article 8.
(2) The exclusion as referred to in paragraph (1) may be granted as long as it is based on allowance and position facility policies as per the Credit or Financing guidelines of each respective BPR or BPRS, provided fairly with minimum criteria:
a. having the ability to repay the received Credit or Financing; b. no special treatment among BPR or BPRS employees in the provision of Credit or Financing; and
c. in accordance with the purpose and procedures for the provision of Credit or Financing regulated in the respective BPR or BPRS credit or financing guidelines.

Article 27
The disbursement of Credit or Financing to several Borrowers or Facility Recipients who are social organizations controlled by 1 (one) party, which is excluded from the classification of Borrower Groups or Facility Recipient Groups as referred to in Article 11 paragraph (3), must meet the following requirements:
a. the controlling party does not receive benefits from the Borrowers or Facility Recipients; b. control is only for the application of governance; and
c. the financial reports of the Borrowers or Facility Recipients are not required to be consolidated in the controlling party's financial reports.

Article 28
Fund Disbursement whose risk is borne by investor customers is excluded from the calculation of BMPD for BPRS.

Article 29
(1) Fund Provision or Fund Disbursement in the form of Interbank Fund Placement with:
a. other BPR and BPRS, for BPR; or b. other BPRS, for BPRS, for addressing potential and/or liquidity problems of other BPR and BPRS is excluded from the BMPK provisions for BPR or BMPD provisions for BPRS.
(2) Addressing potential and/or liquidity problems of other BPR and BPRS as referred to in paragraph (1) is temporary and the BPR or BPRS is not in a structural problem condition.
(3) Fund Provision or Fund Disbursement in the form of Interbank Fund Placement for addressing potential and/or liquidity problems as referred to in paragraph (1) is set at a maximum of 30% (thirty percent) of the Capital of the BPR or BPRS. (4) Fund Provision or Fund Disbursement in the form of Interbank Fund Placement with other BPR and BPRS for addressing potential and/or liquidity problems as referred to in paragraph (3) includes all Related Parties and Unrelated Parties of the BPR or BPRS. (5) Fund Provision or Fund Disbursement in the form of Interbank Fund Placement with other BPR and BPRS for addressing potential and/or liquidity problems as referred to in paragraph (1) is conducted in the form of savings and/or deposits. (6) Fund Provision or Fund Disbursement in the form of Interbank Fund Placement with other BPR and BPRS for addressing potential and/or liquidity problems as referred to in paragraph (1) is conducted with the following requirements:
a. based on an evaluation that has considered the application of risk management; and b. submitting an immediate notice letter to the Financial Services Authority which contains at least statements and information on Fund Provision or Fund Disbursement in the context of addressing potential and/or liquidity problems at other BPR and BPRS. (7) Considerations for the application of risk management in the evaluation of addressing and/or liquidity problems as referred to in paragraph (6) letter a include at least:
a. fund requirement projections based on valid data and information from the BPR or BPRS receiving the Interbank Fund Placement; b. the placement period and return of Interbank Fund Placement are adjusted to the fund requirement projections; and
c. an action plan to resolve liquidity problems at other BPR or BPRS receiving the fund placement, including projections and mechanisms for prioritizing cash inflows for the repayment of funds placed by other BPR or BPRS.
(8) The submission of the notice letter as referred to in paragraph (6) letter b is submitted in the form of an electronic copy via official email or a printed copy addressed to the Regional Office of the Financial Services Authority or the Local Office of the Financial Services Authority according to the area where the head office of the BPR or BPRS is located. (9) Fund Provision or Fund Disbursement in the form of Interbank Fund Placement with other BPR and BPRS that does not meet the requirements as referred to in paragraph (6) is calculated as Fund Provision or Fund Disbursement as referred to in Article 6 and Article 11. (10) Further provisions regarding the calculation of Fund Provision or Fund Disbursement in the form of Interbank Fund Placement in the context of addressing potential and/or liquidity problems at other BPR and BPRS are determined by the Financial Services Authority.

CHAPTER VIII
PROCEDURES FOR SUBMITTING BMPK AND BMPD REPORTS AND CORRECTING BMPK AND BMPD REPORTS

Article 30
(1) BPR and BPRS are required to submit BMPK or BMPD reports online as part of the monthly reports of BPR and BPRS in the form of information on BMPK Violations or BMPD Violations and/or BMPK Exceedances or BMPD Exceedances as regulated in the Financial Services Authority Regulation regarding reporting by rural credit banks and sharia rural financing banks through the Financial Services Authority reporting system. (2) BPR and BPRS are responsible for the truthfulness and completeness of the content of the BMPK or BMPD reports submitted as referred to in paragraph (1). (3) The deadline for submitting reports and/or correcting reports under normal conditions and in force majeure is in accordance with the Financial Services Authority Regulation regarding reporting by rural credit banks and sharia rural financing banks through the Financial Services Authority reporting system.

Article 31
(1) In the event of violations of BMPK or BMPD provisions by BPR or BPRS, the Financial Services Authority has the authority to determine corrections to BMPK or BMPD reports.
(2) BPR and BPRS are required to make corrections determined by the Financial Services Authority as referred to in paragraph (1) in the BMPK or BMPD reports submitted to the Financial Services Authority.
(3) In the event of corrections as referred to in paragraph (1), BPR and BPRS are required to submit BMPK or BMPD report corrections within the time limits and mechanisms as regulated in the Financial Services Authority Regulation regarding reporting by rural credit banks and sharia rural financing banks through the Financial Services Authority reporting system.

Article 32
BPR or BPRS that do not meet the provisions as referred to in Article 30 paragraph (1), Article 31 paragraph (2) and paragraph (3) shall be subject to administrative sanctions in accordance with the Financial Services Authority Regulation regarding reporting by rural credit banks and sharia rural financing banks through the Financial Services Authority reporting system.

Article 33
(1) BPR or BPRS that do not implement resolution steps for BMPK Violations or BMPD Violations and/or BMPK Exceedances or BMPD Exceedances in accordance with corrections determined by the Financial Services Authority as referred to in Article 31 paragraph (1), after being given warnings 2 (two) times by the Financial Services Authority with a grace period of 1 (one) week for each warning:
a. the principal party of the BPR or BPRS may be subject to administrative sanctions in the form of a prohibition from acting as a principal party in accordance with the Financial Services Authority Regulation regarding re-evaluation of principal parties of financial service institutions; and/or b. BPR or BPRS may be subject to sanctions for the temporary suspension of some operational activities of the BPR or BPRS. (2) BPR or BPRS that do not implement resolution steps for BMPK Violations or BMPD Violations, in addition to being subject to administrative sanctions as referred to in paragraph (1), may be subject to written orders against members of the Board of Directors, members of the Board of Commissioners, shareholders, and other affiliated parties in accordance with the Law regarding the Financial Services Authority. (3) In the event that BPR or BPRS do not execute the written orders as referred to in paragraph (2), BPR or BPRS may be subject to criminal sanctions in accordance with the Law regarding the Financial Services Authority.

CHAPTER IX
TRANSITIONAL PROVISIONS

Article 34
All existing BPR Borrowers and BPRS Facility Recipients who existed before this Financial Services Authority Regulation takes effect and fall into the criteria of Related Parties for individuals or companies that are controllers of BPR and BPRS as referred to in Article 8 paragraph (1) letter a and letter d number 1, are calculated as Related Parties in accordance with this Financial Services Authority Regulation.

CHAPTER X
CLOSING PROVISIONS

Article 35
At the time this Financial Services Authority Regulation takes effect:
a. Bank Indonesia Regulation Number 13/5/PBI/2011 concerning the Maximum Limit for Fund Disbursement by Sharia Rural Financing Banks (State Gazette of the Republic of Indonesia Number 11 of 2011, Supplement to the State Gazette of the Republic of Indonesia Number 5191); and b. Financial Services Authority Regulation Number 49/POJK.03/2017 concerning the Maximum Limit for Credit Provision by Rural Credit Banks (State Gazette of the Republic of Indonesia Number 155 of 2017, Supplement to the State Gazette of the Republic of Indonesia Number 6098), are repealed and declared invalid.

Article 36
The provisions as referred to in Article 29 shall take effect on April 1, 2023.

Article 37
This Financial Services Authority Regulation shall take effect after 3 (three) months from the date of its promulgation.

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

In order that everyone may know it, order the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Determined in Jakarta on November 23, 2022
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

Promulgated in Jakarta on November 23, 2022
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2022 NUMBER 27/OJK

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 23 OF 2022
CONCERNING
THE MAXIMUM LIMIT FOR CREDIT PROVISION BY RURAL CREDIT BANKS AND THE MAXIMUM LIMIT FOR FUND DISBURSEMENT BY SHARIA RURAL FINANCING BANKS

I. GENERAL
The contribution of BPR and BPRS to economic growth includes increasing the portfolio of Credit or Financing in the real sector. The provision of Funds in the form of Credit and/or Fund Disbursement in the form of Financing to the real sector, including for productive purposes for micro, small, and medium enterprises, should still adhere to the principles of prudence and risk management. This is important to ensure business continuity, including maintaining the health level of BPR and BPRS. To support the principles of prudence and risk management in BPR Fund Provision and BPRS Fund Disbursement, including the management of BPR Fund Provision and BPRS Fund Disbursement concentration, as well as the diversification of BPR Fund Provision or BPRS Fund Disbursement portfolios among individuals or Borrower Groups or Unrelated Party Facility Recipient Groups. Efforts to manage the risk of concentration of BPR Fund Provision or BPRS Fund Disbursement are carried out through a series of restrictions on BPR Fund Provision or BPRS Fund Disbursement to individuals or Borrower Groups or Unrelated Party Facility Recipient Groups, accompanied by several exceptions considering risk mitigation that can be done and the consequences of violations or exceedances of the aforementioned BPR Fund Provision or BPRS Fund Disbursement limits. The diversification of BPR Fund Provision or BPRS Fund Disbursement portfolios is carried out so that BPR Fund Provision or BPRS Fund Disbursement is not concentrated on specific individuals or Borrower Groups or Unrelated Party Facility Recipient Groups. This is partly to ensure that all layers of society have equal opportunities and access to banking financial products. As a response to the impact of the spread of Coronavirus Disease 2019 on BPR and BPRS, the Financial Services Authority has issued a series of stimulus regulations, including Financial Services Authority Regulation Number 34/POJK.03/2020 concerning Policies for Rural Credit Banks and Sharia Rural Financing Banks as a Result of the Spread of Coronavirus Disease 2019, which has undergone 2 (two) changes. The aforementioned Financial Services Authority Regulation includes provisions regarding the policy of excluding Interbank Fund Provision in the context of addressing liquidity problems of BPR and BPRS from BMPK for BPR and BMPD for BPRS for the duration of the validity of the aforementioned Financial Services Authority Regulation. Considering the need to support BPR and BPRS in addressing potential and/or liquidity problems of other BPR and BPRS, the regulation of exclusions for Fund Provision or Fund Disbursement is regulated in this Financial Services Authority Regulation. In this regard, and considering alignment with current regulations including provisions regarding health level assessment and reporting through the Financial Services Authority reporting system for BPR and BPRS, it is necessary to refine the regulations regarding BPR BMPK and BPRS BMPD.

II. ARTICLE BY ARTICLE
Article 1
Is clear enough.

Article 2
Including the principle of prudence is the application of risk management in accordance with:
a. Financial Services Authority Regulation regarding the application of risk management for rural credit banks; and b. Financial Services Authority Regulation regarding the application of risk management for sharia rural financing banks. In providing Funds to Borrowers or Disbursing Funds to Facility Recipients, attention is also paid to, among other things, Financial Services Authority Regulations regarding the application of anti-money laundering programs and counter-terrorism financing in the financial services sector.

Article 3
Is clear enough.

Article 4
Paragraph (1)
Is clear enough.
Paragraph (2)
Letter a
Is clear enough.
Letter b
The assessment of violations that are significant considers, among other things:

1. negative impacts of problems and/or violations of statutory provisions on the continuity of business or performance of BPR and BPRS;
2. non-fulfillment of commitments; and/or
3. type, amount, and/or frequency of violations.
   Paragraph (3)
   Is clear enough.

Article 5
Is clear enough.

Article 6
Is clear enough.

Article 7
What is meant by "approval of the Board of Commissioners members" is approval to carry out supervisory duties performed by the Board of Commissioners against management actions by the Board of Directors and does not eliminate the responsibility of the Board of Directors as the decision-maker.

Article 8
Paragraph (1)
Letter a
Is clear enough.
Letter b
Is clear enough.
Letter c
Is clear enough.
Letter d
What is meant by "family relationships up to the second degree, both horizontal and vertical" are the following parties:

1. biological/step/adoptive parents;
2. biological/step/adoptive siblings together with their husbands or wives;
3. biological/step/adoptive children;
4. biological/step/adoptive grandparents;
5. biological/step/adoptive grandchildren;
6. biological/step/adoptive siblings of parents together with their husbands or wives;
7. husband or wife;
8. parents-in-law;
9. husbands or wives of biological/step/adoptive children;
10. grandparents of husband or wife;
11. husbands or wives of biological/step/adoptive grandchildren; or
12. biological/step/adoptive siblings of husband or wife together with their husbands or wives.
    Letter e
    What is meant by "executive officials" is executive officials in accordance with the Financial Services Authority Regulation regarding rural credit banks and the Financial Services Authority Regulation regarding sharia rural financing banks. Letter f Is clear enough. Letter g Is clear enough. Letter h This provision considers provisions on the restriction of dual positions in accordance with the Financial Services Authority Regulation regarding rural credit banks and the Financial Services Authority Regulation regarding sharia rural financing banks. Example:
    BPR A provides funds to BPR B.

---

BPR A has 2 (two) directors and 2 (two) commissioners. Both commissioners of BPR A also serve as commissioners at BPR B, which has 2 (two) directors and 2 (two) commissioners. Considering that the 2 (two) commissioners at BPR B meet the minimum criterion of 50% (fifty percent) of the total number of members of the Board of Directors and Board of Commissioners of BPR A, BPR B is considered a Related Party of BPR A. Therefore, the provision of funds by BPR A to Related Parties, including BPR B, is at most 10% (ten percent).

Letter i
This provision takes into account the provisions on the restriction of dual positions in accordance with the Financial Services Authority Regulation regarding rural credit banks and the Financial Services Authority Regulation regarding sharia rural financing banks.

Example:
BPRS C disburses funds to PT D.
BPRS C has 2 (two) directors and 2 (two) commissioners. One of the commissioners of BPRS C also serves as a commissioner at PT D, which has 1 (one) director and 1 (one) commissioner. Considering that the 1 (one) commissioner at PT D meets the minimum criterion of 50% (fifty percent) of the total number of members of the Board of Directors and Board of Commissioners of PT D, PT D is considered a Related Party of BPRS C. Therefore, the disbursement of funds by BPRS C to Related Parties, including PT D, is at most 10% (ten percent).

Letter j
The term “guarantee” refers to a written promise made by the guarantor to take over and/or pay off part or all of the obligations of the party receiving the Provision of Funds or Disbursement of Funds in the event that the party receiving the Provision of Funds or Disbursement of Funds fails to meet their obligations (breach of contract).

Paragraph (2)
Joint control is proven by the existence of a written agreement or commitment from the owners to provide financial and non-financial support according to their respective ownership.

Paragraph (3)
Sufficiently clear.

Article 9
Sufficiently clear.

Article 10
Sufficiently clear.

Article 11
Sufficiently clear.

Article 12
Paragraph (1)
Letter a
The term “a family” refers to a nuclear family consisting of husband, wife, and biological/step/adopted child; husband and wife; husband and biological/step/adopted child; or wife and biological/step/adopted child.

Example:

1. Shares of Company A, Company B, and Company C are each owned at least 25% (twenty-five percent) by 1 (one) person or 1 (one) company. In the event that Company A, Company B, and Company C become borrowers at the same BPR, these companies are classified as 1 (one) group of Borrowers.
2. Shares of Company A, Company B, and Company C are each owned at least 25% (twenty-five percent) jointly by X, Y, and Z, who are husband, wife, and biological/step/adopted child. In the event that Company A, Company B, and Company C become borrowers at the same BPR, these companies are classified as 1 (one) group of Borrowers.
3. Shares of Company A are owned at least 25% (twenty-five percent) by the husband and the first child, and shares of Company B are owned at least 25% (twenty-five percent) by the wife and the second child. In the event that Company A and Company B become borrowers at the same BPR, these companies are classified as 1 (one) group of Borrowers.

Letter b
Example:
Company A owns 25% (twenty-five percent) of the shares of Company B, while Company B owns 25% (twenty-five percent) of the shares of Company C. In the event that Company A, Company B, and Company C become borrowers of a BPR, Company A and Company B are classified as 1 (one) group of Borrowers. Meanwhile, Company B and Company C are classified as 1 (one) other group of Borrowers.

Letter c
The consideration of the minimum criterion of 50% (fifty percent) or more is calculated from the total number of members of the Board of Directors and members of the Board of Commissioners. In the event that the company is a legal entity in the form of a Cooperative, to determine majority, it is the total number of managers, supervisors, and administrators appointed by the management of the said Cooperative.

Letter d
Financial relationships between Borrowers or Facility-Receiving Customers are analyzed based on several factors, namely:

1. There is financial assistance from one Borrower or Facility-Receiving Customer to another Borrower or Facility-Receiving Customer under specific terms that cause the party providing the financial assistance to have the authority to determine the strategic policies of the company or business entity receiving the financial assistance, including decisions to distribute dividends and/or change management; and/or
2. There is a significant business chain linkage in the operational business of one Borrower or Facility-Receiving Customer with another Borrower or Facility-Receiving Customer, resulting in interdependence between Borrowers or Facility-Receiving Customers that can be proven, causing:
   a. one Borrower or Facility-Receiving Customer is unable to easily transfer such business transactions to other parties; and b. the inability to easily transfer such business transactions causes the cash flow of one Borrower or Facility-Receiving Customer to experience significant disruption, thereby experiencing difficulties in meeting obligations.

Letter e
The term “guarantor” refers to the party providing a guarantee in the form of a written promise stating that the guarantor will take over and/or pay off part or all of the obligations of the debtor, in the event that the debtor fails to meet their obligations (breach of contract). Included in this definition are parties that receive Provision of Funds from BPR or Disbursement of Funds from BPRS that are guaranteed using the same collateral object and/or collateral with the same owner.

Article 13
Sufficiently clear.

Article 14
Paragraph (1)
Letter a
Sufficiently clear.

Letter b
The merger, consolidation, or acquisition of a BPR or BPRS with another BPR or BPRS, or the acquisition of a Borrower or Facility-Receiving Customer company with another company, is carried out in accordance with the Financial Services Authority Regulation regarding merger, consolidation, and acquisition for BPR and BPRS, or relevant statutory provisions regarding the merger, consolidation, or acquisition of Borrower or Facility-Receiving Customer companies.

The term “change in ownership structure” refers to a change in ownership structure at the Borrower or Facility-Receiving Customer company and/or at the BPR or BPRS.

The term “change in management” refers to a change in management at the Borrower or Facility-Receiving Customer company and/or at the BPR or BPRS.

The term “change in Related Parties and/or Borrower Groups or Facility-Receiving Customer Groups” refers to:

1. A Non-Related Borrower or Facility-Receiving Customer becoming a Related Borrower or Facility-Receiving Customer; and/or
2. An individual Borrower or Facility-Receiving Customer becoming a Borrower Group or Facility-Receiving Customer Group.

Letter c
The term “change in provisions” refers to a change in provisions that causes a change in the criteria for Related Parties and/or Borrower Groups or Facility-Receiving Customer Groups, and/or other changes in provisions that cause an exceedance of BMPK or BMPD.

Paragraph (2)
Sufficiently clear.

Article 15
Paragraph (1)
The action plan includes, among other things, steps and time targets for resolving Violations of BMPK or BMPD and/or Exceedance of BMPK or BMPD. Steps for resolving Violations of BMPK or BMPD and/or Exceedance of BMPK or BMPD include, among other things:
a. Repayment of all or part of the Credit or Financing that violates and/or exceeds BMPK or BMPD; and/or b. Addition of paid-up capital.

Paragraph (2)
The determination by the Financial Services Authority can be in the form of an exit meeting minutes or a notification letter of the determination of Violation of BMPK or BMPD.

The BMPK or BMPD Report is part of the monthly report of the BPR or BPRS submitted through the Financial Services Authority reporting system.

Example A:
BPRS A provides Financing to Mrs. Y, who is a Non-Related Party of BPRS, in June 2023, causing a violation of BMPD to Non-Related Parties. BPRS A is required to submit an action plan for the BMPD violation to the Financial Services Authority at the latest 20 (twenty) working days after July 10, 2023, namely on August 7, 2023.

Example B:
BPRS B provides Financing to Mr. Z, who is a Non-Related Party of BPRS, in June 2023, causing a violation of BMPD to Non-Related Parties based on the results of the Financial Services Authority examination as recorded in the exit meeting minutes dated October 10, 2023. BPRS B is required to submit an action plan for the BMPD violation to the Financial Services Authority at the latest 10 (ten) working days from October 10, 2023, namely on October 23, 2023.

Paragraph (3)
For Exceedance of BMPK or BMPD caused by merger, consolidation, or acquisition, the time limit is 20 (twenty) working days after the end of the reporting month since the deed of merger, consolidation, or acquisition was approved by the competent authority.

The BMPK or BMPD Report is part of the monthly report of the BPR or BPRS submitted through the Financial Services Authority reporting system.

Example:
The deed of merger, consolidation, or acquisition of BPR X was approved by the competent authority on August 5, 2023. BPR X is required to submit an action plan for the Exceedance of BMPK to the Financial Services Authority at the latest 20 (twenty) working days after August 31, 2023, namely on September 28, 2023.

Paragraph (4)
Sufficiently clear.

Article 16
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
Sufficiently clear.

Letter d
Sufficiently clear.

Letter e
On August 7, 2023, BPR A placed deposits at BPR B (Non-Related Party) amounting to Rp500,000,000.00 (five hundred million rupiah), which constitutes 21% (twenty-one percent) of the Capital of BPR A, thereby violating BMPK. Therefore, BPR A is required to create an action plan to resolve the BMPK Violation. The action plan is submitted by BPR A on August 18, 2023, with a resolution time target of at most 20 (twenty) working days from the date the action plan is submitted to the Financial Services Authority, namely on September 14, 2023.

Paragraph (3)
Example:
On April 3, 2023, BPR B provided Credit to debtor X (Non-Related Party) amounting to Rp200,000,000.00 (two hundred million rupiah) with a term of 12 (twelve) months. On January 31, 2024, the Capital of BPR B decreased due to losses, so the percentage of Credit to debtor X became 25% (twenty-five percent) of the Capital of BPR B, exceeding the BMPK set at 5% (five percent).

Therefore, BPR B is required to create an action plan to resolve the exceedance with a resolution time target of at most until the Credit matures, namely April 3, 2024.

Paragraph (4)
Sufficiently clear.

Article 17
Sufficiently clear.

Article 18
Sufficiently clear.

Article 19
Paragraph (1)
The term “supporting evidence” includes, among other things, evidence of capital deposits and/or evidence of partial or full repayment of Credit or Financing.

Paragraph (2)
The term “realization of the action plan” refers to the implementation stages for resolving Violations of BMPK or BMPD and/or Exceedance of BMPK or BMPD.

Article 20
Sufficiently clear.

Article 21
Sufficiently clear.

Article 22
Sufficiently clear.

Article 23
Sufficiently clear.

Article 24
The term “Interbank Fund Placement Section” refers to:

1. Deposits, contributions, or portions of funds required to be placed by a BPR or BPRS at another BPR or BPRS according to agreement; or
2. Funds originating from deposits, contributions, or portions of funds from each BPR or BPRS intended to address the liquidity difficulties of each respective BPR or BPRS.

Letter a
The umbrella institution is an institution that functions to implement a cooperation scheme, including helping BPRs and BPRSs to overcome liquidity difficulties.

Letter b
Sufficiently clear.

Article 25
The term “core-plasma partnership model” refers to a development pattern using a core company that helps guide surrounding people's companies as plasma in a mutually beneficial, integral, and continuous cooperation system.

Article 26
Sufficiently clear.

Article 27
Social organizations include organizations operating in the fields of education and health.

Letter a
Sufficiently clear.

Letter b
The term “implementation of governance” refers to a mechanism to ensure that the social organization is run based on the values of the social organization established by the controller of the social organization.

Letter c
Sufficiently clear.

Article 28
Sufficiently clear.

Article 29
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Structural problems are indicated, among other things, by BPRs and BPRSs facing liquidity and/or capital problems that may cause BPRs and BPRSs to potentially be placed under intensive supervision or special supervision.

Paragraph (3)
Example 1:
If BPR X has already placed funds at BPR A (Non-Related Party) amounting to 20% (twenty percent) of the Capital of BPR X, BPR X can place funds at BPR A for the purpose of addressing liquidity problems at most 30% (thirty percent) of the Capital of BPR X. The fund placement of BPR X for the purpose of addressing liquidity problems to all BPRs or BPRSs, including BPR A, is at most 30% (thirty percent) of the Capital of BPR X.

Example 2:
If BPRS Y has already placed funds at all Related Parties (including BPRS C) amounting to 10% (ten percent) of the Capital of BPRS Y, BPRS Y can place funds for the purpose of addressing liquidity problems at BPRS C (Related Party) amounting to 30% (thirty percent) of the Capital of BPRS Y. The fund placement of BPRS Y for the purpose of addressing liquidity problems to all BPRSs, including BPRS C, is at most 30% (thirty percent) of the Capital of BPRS Y.

Example 3:
If BPR Z has already placed funds at all Related Parties (including BPR D) amounting to 10% (ten percent) of the Capital of BPR Z and at BPR E (Non-Related Party) amounting to 20% (twenty percent) of the Capital of BPR Z, then BPR Z can place funds for the purpose of addressing liquidity problems at all Related Party and Non-Related Party BPRs or BPRSs, including BPR D and BPR E, at most 30% (thirty percent) of the Capital of BPR Z.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Letter a
Sufficiently clear.

Letter b
The term “statement” refers to a statement from the BPR or BPRS that provides the Provision of Funds or Disbursement of Funds and the BPR or BPRS that receives the Provision of Funds or Disbursement of Funds stating that the fund placement is carried out for the purpose of addressing potential and/or liquidity problems at the BPR or BPRS receiving the fund placement.

The term “information on Provision of Funds or Disbursement of Funds” includes, among other things, information regarding the form, amount, and term of Interbank Fund Placement for addressing potential and/or liquidity problems at other BPRs and BPRSs.

Paragraph (7)
Sufficiently clear.

Paragraph (8)
Sufficiently clear.

Paragraph (9)
Sufficiently clear.

Paragraph (10)
Sufficiently clear.

Article 30
Sufficiently clear.

Article 31
Paragraph (1)
The term “implementation of BMPK or BMPD provisions” includes, among other things, the calculation of Provision of Funds or Disbursement of Funds, the calculation of Capital, the determination of Borrower Groups or Facility-Receiving Customer Groups, and/or the determination of Related Parties.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Article 32
Sufficiently clear.

Article 33
Sufficiently clear.

Article 34
Sufficiently clear.

Article 35
Sufficiently clear.

Article 36
Sufficiently clear.

Article 37
Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 19/OJK