Maximum Limit on Fund Disbursement and Large Fund Disbursement for Islamic Commercial Banks

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FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 26 /POJK.03/2021
CONCERNING
MAXIMUM LIMIT ON FUND DISBURSEMENT AND LARGE FUND DISBURSEMENT FOR ISLAMIC COMMERCIAL BANKS BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that to support a more optimal economic growth rate, Islamic commercial banks must support financing to the real sector, while still observing the principle of prudence; b. that the concentration of Islamic commercial banks' fund disbursement to facility recipient customers or a group of facility recipient customers is one of the potential causes of Islamic commercial banks' business failure;
c. that to avoid the potential for Islamic commercial banks' business failure as a result of fund disbursement concentration, Islamic commercial banks need to regulate fund disbursement in accordance with the principle of prudence;
d. that to regulate fund disbursement in accordance with the principle of prudence, it is necessary to spread or diversify the portfolio of fund disbursements given and to set limits on fund disbursement and large fund disbursement to certain parties and/or business groups; 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 Maximum Limit on Fund Disbursement and Large Fund Disbursement for Islamic Commercial Banks;

Recalling:

Law Number 21 of 2008 concerning Islamic Banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette of the Republic of Indonesia Number 4867);
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 ON FUND DISBURSEMENT AND LARGE FUND DISBURSEMENT FOR ISLAMIC COMMERCIAL BANKS.

CHAPTER I
GENERAL PROVISIONS

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

Islamic Commercial Bank, hereinafter referred to as the Bank, is a bank that conducts business activities based on Sharia principles, which in its activities provides services in the payment flow.
Maximum Limit on Fund Disbursement, hereinafter abbreviated as BMPD, is the maximum percentage of fund disbursement established against the Bank's capital for fund disbursement to related parties or the Bank's Tier 1 capital for fund disbursement to parties other than related parties.
Large Fund Disbursement is the disbursement of funds to 1 (one) facility recipient customer or 1 (one) group of facility recipient customers other than related parties with a nominal amount of 10% (ten percent) or more of the Bank's Tier 1 capital.
Fund Disbursement is the investment of the Bank's funds in the form of placements, Sharia hedging transactions, Sharia securities, acceptance bills, financing, capital participation, temporary capital participation, administrative account transactions, and other forms of fund disbursement that can be equated with them.
Capital is Tier 1 capital and Tier 2 capital, taking into account capital reduction factors in accordance with the Financial Services Authority Regulation concerning minimum capital adequacy requirements for Islamic commercial banks.
Tier 1 Capital is core equity tier 1 and additional tier 1 capital, taking into account capital reduction factors in accordance with the Financial Services Authority Regulation concerning minimum capital adequacy requirements for Islamic commercial banks.
Related Party is an individual or company that has a controlling relationship with the Bank, either directly or indirectly, through ownership, management, and/or financial relationships.
BMPD Violation is the excess difference between the established BMPD percentage and the percentage of Fund Disbursement against the Bank's Capital for Related Parties or the Bank's Tier 1 Capital for parties other than Related Parties, using the Capital or Tier 1 Capital position of the last month before the realization of Fund Disbursement.
BMPD Exceedance is the excess difference between the established BMPD percentage and the percentage of Fund Disbursement against the Bank's Capital for Related Parties or the Bank's Tier 1 Capital for parties other than Related Parties at the reporting date and does not include BMPD Violation.
Subsidiary Company is a company owned and/or controlled by the Bank directly or indirectly, both domestically and abroad, that meets criteria in accordance with the Financial Services Authority Regulation concerning the application of consolidated risk management for banks that exercise control over subsidiary companies.
Credit Risk Mitigation Technique, hereinafter referred to as MRT, is the method of recognizing collateral, guarantees, insurance, or business financing insurance in calculating risk-weighted assets using the standard approach.
Placement is the investment of the Bank's funds in other banks and/or Sharia retail financing banks in the form of current accounts, savings, time deposits, deposit certificates, financing, and other fund investments based on similar Sharia principles, excluding other Placements in Indonesia through the interbank Sharia money market for the purpose of daily liquidity management.
Sharia Hedging Transaction is a transaction conducted based on Sharia principles to mitigate the risk of price changes in the financial market.
Sharia Securities, hereinafter abbreviated as SBS, are securities issued based on Sharia principles by parties authorized to issue them in accordance with applicable legislation as evidence of participation in the ownership of Sharia securities assets, both in Rupiah and foreign currency.
Acceptance Bill is a claim arising as a result of acceptance conducted on time drafts.
Financing is the provision of funds or claims equated with them in the form of profit-sharing transactions, leasing transactions including service leasing, sales transactions, and borrowing transactions based on agreement or consensus between the Bank and other parties, obligating the financed party and/or the party given financial facilities to return the funds after a certain period with compensation in the form of profit-sharing, ujrah, margin, or without compensation.
Capital Participation is the investment of the Bank's funds in the form of shares in companies operating in the Sharia financial sector, including investment in the form of mandatory convertible sukuk or specific transactions that result in the Bank having or will have shares in companies operating in the Sharia financial sector.
Temporary Capital Participation is capital participation by the Bank in the form of shares in Facility Recipient Customers to overcome the consequences of Sharia financing failure.
Administrative Account Transaction is a commitment and contingent liability obligation that includes the issuance of guarantees, letters of credit (L/C), standby letters of credit (SBLC), Domestic Documentary Letters of Credit (SKBDN), or other commitment and contingent liability obligations based on Sharia principles.
Facility Recipient Customer is an individual or company customer that receives Fund Disbursement from the Bank.
Government of the Republic of Indonesia is the central government and local governments.
State-Owned Enterprises, hereinafter abbreviated as BUMN, are business entities whose capital is wholly or largely owned by the state through direct participation originating from separated state assets, including companies owned directly by parent companies that are BUMNs.
Regional-Owned Enterprises, hereinafter abbreviated as BUMD, are business entities whose capital is wholly or largely owned by the region in accordance with legislation concerning regional government.
Prime Bank is a bank that has an investment rating given by a rating agency based on an assessment of the bank's long-term business prospects and total assets included in the list of the top 200 (two hundred) largest in the world.
Board of Directors is the Bank organ authorized and fully responsible for managing the Bank for the interests of the Bank in accordance with the Bank's purpose and objectives and representing the Bank both inside and outside the court in accordance with the Bank's Articles of Association.
Board of Commissioners is the Bank organ tasked with conducting general and/or specific supervision in accordance with the Articles of Association and providing advice to the Board of Directors.
Executive Official is a Bank official who is directly responsible to members of the Board of Directors or has significant influence over the Bank's policy and/or operations.

Article 2
(1) The Bank is required to calculate BMPD and Large Fund Disbursement for each individual and consolidated Bank Fund Disbursement.
(2) The calculation of BMPD and Large Fund Disbursement for each consolidated Bank Fund Disbursement as referred to in paragraph (1) does not include Fund Disbursement from Subsidiary Companies that conduct insurance business activities. (3) The calculation of BMPD and Large Fund Disbursement on a consolidated basis as referred to in paragraph (1) must:
a. take into account Fund Disbursement from Subsidiary Companies to Facility Recipient Customers as a unity with the Bank's Fund Disbursement; and b. use:

Bank Capital for Related Parties; or
Bank Tier 1 Capital for parties other than Related Parties,
consolidated.
(4) Facility Recipient Customers as referred to in paragraph (3) letter a consist of:
a. counterparties for Fund Disbursement in the form of Placements and Sharia Hedging Transactions; b. issuers of SBS, sellers of SBS, managers of collective investment contracts, and/or reference entities for Fund Disbursement in the form of SBS;
c. banks or customers, for Fund Disbursement in the form of Acceptance Bills;
d. customers, for Fund Disbursement in the form of Financing; e. parties receiving Capital Participation, for Fund Disbursement in the form of Capital Participation; f. applicants, for Fund Disbursement in the form of guarantees, letters of credit (L/C), standby letters of credit (SBLC), Domestic Documentary Letters of Credit (SKBDN), or other similar instruments; and/or g. other parties required to repay Fund Disbursement from the Bank.

Article 3
(1) The Bank is required to apply the principle of prudence and risk management in providing Fund Disbursement, including Fund Disbursement to Related Parties, Large Fund Disbursement, and Fund Disbursement to other parties having interests in the Bank. (2) In the application of the principle of prudence and risk management as referred to in paragraph (1), the Bank is required to have written policies, guidelines, and procedures regarding Fund Disbursement to Related Parties, Large Fund Disbursement, and/or Fund Disbursement to other parties having interests in the Bank. (3) The written policies, guidelines, and procedures regarding Fund Disbursement as referred to in paragraph (2) must contain at least:
a. standards and criteria for selecting and assessing the feasibility of Facility Recipient Customers and groups of Facility Recipient Customers; b. standards and criteria for setting Fund Disbursement limits;
c. Fund Disbursement management information system;
d. Fund Disbursement monitoring system; and e. determination of control steps to address Fund Disbursement concentration.
(4) The written policies, guidelines, and procedures regarding Fund Disbursement as referred to in paragraph (3) must be the same or more prudent than the policies and procedures for general credit risk management implementation. (5) The written policies, guidelines, and procedures regarding Fund Disbursement as referred to in paragraph (3) must be reviewed periodically at least 1 (one) time in 3 (three) years, or at a higher frequency in the event of significant changes. (6) The written policies, guidelines, and procedures regarding Fund Disbursement as referred to in paragraph (3) are an inseparable part of credit risk policies, procedures, and determinations in accordance with the Financial Services Authority Regulation concerning the application of risk management for Islamic commercial banks.

Article 4
The Bank is prohibited from:
a. making an agreement or setting requirements that obligate the Bank to provide Fund Disbursement that will result in a BMPD violation; and/or b. providing Fund Disbursement that results in a BMPD violation.

Article 5
(1) Banks that violate the provisions as referred to in Article 2 paragraph (1), paragraph (3), Article 3 paragraph (1), paragraph (2), paragraph (5), and/or Article 4 are subject to administrative sanctions in the form of written reprimands. (2) In the event that:
a. the Bank has been subject to administrative sanctions as referred to in paragraph (1), and continues to violate the provisions as referred to in Article 2 paragraph (1), paragraph (3), Article 3 paragraph (1), paragraph (2), paragraph (5), and/or Article 4; or b. has not been subject to administrative sanctions as referred to in paragraph (1) but based on the Financial Services Authority's assessment there is a violation that needs to be subject to immediate sanctions, the Bank may be subject to administrative sanctions in the form of:

reduction of the Bank's health level;
prohibition on expanding business activities;
prohibition on opening office networks; and/or
suspension of certain business activities.
(3) In the event that:
a. the Bank has been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) and continues to violate the provisions as referred to in Article 2 paragraph (1), paragraph (3), Article 3 paragraph (1), paragraph (2), paragraph (5), and/or Article 4; or b. has 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 violation that needs to be subject to immediate sanctions, the Bank's principal parties may be subject to administrative sanctions in the form of prohibitions as principal parties in accordance with the Financial Services Authority Regulation concerning the re-evaluation of principal parties of financial service institutions.

CHAPTER II
FUND DISBURSEMENT TO RELATED PARTIES

Article 6
The Fund Disbursement portfolio to Related Parties with the Bank as a whole is established at a maximum of 10% (ten percent) of the Bank's Capital.

Article 7
(1) The Bank is prohibited from providing Fund Disbursement to Related Parties that contradicts general Fund Disbursement procedures.
(2) The Bank is prohibited from providing Fund Disbursement to Related Parties without the approval of the Bank's Board of Commissioners.
(3) The Bank is prohibited from purchasing low-quality assets from Related Parties.

Article 8
In the event that the quality of Fund Disbursement to Related Parties deteriorates to substandard, doubtful, or non-performing, the Bank is required to take resolution steps to improve it by:
a. repayment of Financing within a maximum of 60 (sixty) days from the deterioration of the Fund Disbursement quality; and/or b. restructuring Financing since the deterioration of the Fund Disbursement quality.

Article 9
In the event that the Bank provides Fund Disbursement in the form of Capital Participation that results in the party receiving Capital Participation becoming a Related Party, the Bank is required to ensure:
a. the Fund Disbursement plan is established at a maximum of 10% (ten percent) of the Bank's Capital as referred to in Article 6; b. the Fund Disbursement that will be and has been given to the party receiving Capital Participation after being added to the entire Fund Disbursement portfolio to Related Parties is established at a maximum of 10% (ten percent) of the Bank's Capital as referred to in Article 6; and
c. it meets the provisions as referred to in Article 7.

Article 10
(1) Related Parties include:
a. individuals or companies that are controllers of the Bank; b. legal entities in the event the Bank acts as a controller;
c. companies in the event individuals or companies as referred to in letter a act as controllers;
d. members of the Board of Directors, members of the Board of Commissioners, and Executive Officials of the Bank; e. parties having horizontal or vertical family relationships:

from individuals who are controllers of the Bank as referred to in letter a; and
from members of the Board of Directors and/or members of the Board of Commissioners at the Bank as referred to in letter d;
f. directors and/or commissioners of the Board of Commissioners at companies as referred to in letter a, letter b, and/or letter c; g. companies whose directors and/or commissioners are members of the Board of Commissioners at the Bank; h. companies where 50% (fifty percent) or more of the directors and/or commissioners are directors and/or commissioners at companies as referred to in letter a, letter b, and letter c;
i. companies that:
members of the Board of Directors, members of the Board of Commissioners, and/or Executive Officials of the Bank as referred to in letter d act as controllers; and
directors and/or commissioners of parties as referred to in letter a, letter b, and/or letter c act as controllers;
j. collective investment contracts where the Bank and/or parties as referred to in letter a through letter i own 10% (ten percent) or more of shares in the investment manager managing the collective investment contract; k. companies having financial relationships with the Bank and/or parties as referred to in letter a through letter i;
l. Facility Recipient Customers in the form of individuals or non-bank companies having financial relationships through the provision of guarantees to parties as referred to in letter a through letter k;
m. Facility Recipient Customers having financial relationships through guarantees provided by parties as referred to in letter a through letter k; n. other banks having financial relationships through the provision of guarantees to parties as referred to in letter a through letter k in the event there is re-guaranteeing from the Bank and/or parties as referred to in letter a through letter k to such other banks; and o. other companies in which there is an interest in the form of share ownership of 10% (ten percent) or more individually or jointly, from parties as referred to in letter e.

(2) Controllers as referred to in paragraph (1) letter a and letter b are controllers who directly or indirectly:
a. own 10% (ten percent) or more of the shares of the Bank or other companies individually or jointly; b. have option rights or other rights to own shares that if exercised cause the party to control and/or own 10% (ten percent) or more of the shares of the Bank or other companies individually or jointly;
c. cooperate or take aligned actions to achieve common goals in controlling the Bank or other companies, with or without written agreements with other parties, so that jointly they control and/or own 10% (ten percent) or more of the shares of the Bank or other companies;
d. cooperate or take aligned actions to achieve common goals in controlling the Bank or other companies, with or without written agreements with other parties, so that jointly they have option rights or other rights to own shares, which if exercised cause the party to control and/or own 10% (ten percent) or more of the shares of the Bank or other companies jointly; e. 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 Bank or other companies; f. have the ability to determine the strategic policies of the Bank or other companies; g. control 1 (one) or more other companies that wholly and/or jointly control 10% (ten percent) or more of the shares of the Bank or other companies; and/or h. exercise control over controllers as referred to in letter a and letter g.

(3) Controllers as referred to in paragraph (1) letter c and letter i in the event individuals or companies directly or indirectly:
a. own 10% (ten percent) or more of the shares of other companies and are the largest share ownership portion; b. own individually or jointly 25% (twenty-five percent) or more of the shares of other companies;
c. have option rights or other rights to own shares that if exercised cause the party to control and/or own shares of other companies as referred to in letter a or letter b;
d. cooperate or take aligned actions to achieve common goals in controlling other companies, with or without written agreements with other parties, so that jointly they control and/or own shares of other companies as referred to in letter a or letter b; e. cooperate or take aligned actions to achieve common goals in controlling other companies, with or without written agreements with other parties, so that jointly they have option rights or other rights to own shares, which if exercised cause the party to control and/or own shares of other companies jointly as referred to in letter a or letter b; f. 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 other companies; and/or g. have the ability to determine the strategic policies of other companies.

Article 11
In determining Related Parties, the financial relationships as referred to in Article 10 paragraph (1) letter k through letter n do not apply to:
a. Fund Disbursement facilities provided by the Bank to Facility Recipient Customers in the Bank's general business activities; and b. the provision of guarantees by insurance companies, guarantee companies, the Government of the Republic of Indonesia, and/or foreign governments.

Article 12
(1) Financing to Executive Officials of the Bank is excluded as Financing disbursement to Related Parties as referred to in Article 6 and Article 10 provided it is given for the welfare of the Bank's human resources based on allowance and position facility policies and is given fairly. (2) The criteria for being given fairly as referred to in paragraph (1) must at least meet the requirements:
a. Executive Officials of the Bank have the ability to repay the Financing received; b. the assessment of Financing provision is conducted by observing the principle of prudence equivalent to the provision of Financing to parties who are not Executive Officials of the Bank;
c. there is no special treatment among Executive Officials of the Bank in the provision of Financing; and
d. the procedure for providing Financing is regulated in general personnel regulations.

Article 13
Fund disbursement to legal entities as referred to in Article 10 paragraph (1) letter b which is controlled by the Bank through the Bank's pension fund is exempted from the BMPD calculation to Related Parties as referred to in Article 6, provided that the following requirements are met:
a. the control relationship between the Bank and the company controlled by the Bank's pension fund is solely caused by the pension fund's ownership of the controlled company; and b. Fund Disbursement is granted with fair requirements and in accordance with general Fund Disbursement procedures.

Article 14
(1) Fund disbursement to companies whose board of directors and/or board of commissioners members are:
a. members of the Board of Commissioners at the Bank, as referred to in Article 10 paragraph (1) letter d; and/or b. family members of Bank Board of Commissioners members as referred to in Article 10 paragraph (1) letter e number 2), is exempted from the BMPD calculation to Related Parties as referred to in Article 6, provided that the following requirements are met. (2) The requirements as referred to in paragraph (1) consist of:
a. the Board of Commissioners member at the Bank is an independent commissioner; b. Fund Disbursement is granted with fair requirements and in accordance with general Fund Disbursement procedures;
c. the independent commissioner is not directly or indirectly involved in decision-making for Fund Disbursement; and
d. there are no other control relationships.

Article 15
Temporary Capital Participation to Related Parties to address Financing failure in accordance with the Financial Services Authority Regulation regarding prudential principles in capital participation is exempted from:
a. BMPD calculation to Related Parties as referred to in Article 6; and b. determination of Related Parties as referred to in Article 10.

Article 16
(1) Banks that violate the provisions as referred to in Article 7, Article 8, and/or Article 9 are subject to administrative sanctions in the form of written reprimands. (2) In the event that:
a. the Bank has been subject to administrative sanctions as referred to in paragraph (1), and continues to violate the provisions as referred to in Article 7, Article 8, and/or Article 9; or b. has not been subject to administrative sanctions as referred to in paragraph (1) but based on the Financial Services Authority's assessment there is a violation that requires immediate sanction, the Bank may be subject to administrative sanctions in the form of:

reduction of the Bank's health level;
prohibition on expanding business activities;
prohibition on opening office networks; and/or
suspension of certain business activities.
(3) In the event that:
a. the Bank has been subject to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) and continues to violate the provisions as referred to in Article 7, Article 8, and/or Article 9; or b. has 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 violation that requires immediate sanction, the Bank's principal party may be subject to administrative sanctions in the form of prohibition as a principal party in accordance with the Financial Services Authority Regulation regarding reassessment for principal parties of financial service institutions.

CHAPTER III
FUND DISBURSEMENT TO NON-RELATED PARTIES

Article 17
Fund disbursement to:
a. 1 (one) Facility-Receiving Customer other than a Related Party; or b. 1 (one) group of Facility-Receiving Customers other than Related Parties, is determined at a maximum of 25% (twenty-five percent) of the Bank's Core Capital (tier 1).

Article 18
(1) In the event that a Facility-Receiving Customer has a control relationship with another Facility-Receiving Customer through ownership, management, and/or financial relationships, the Bank must classify the Facility-Receiving Customer into a group of Facility-Receiving Customers as referred to in Article 17 letter b. (2) The ownership, management, and/or financial relationships as referred to in paragraph (1) include the following criteria:
a. the Facility-Receiving Customer is the controller of another Facility-Receiving Customer; b. 1 (one) same party is the controller of several Facility-Receiving Customers;
c. 50% (fifty percent) or more of the board of directors members and/or board of commissioners members of the Facility-Receiving Customer become board of directors members and/or board of commissioners members at another Facility-Receiving Customer;
d. the Facility-Receiving Customer has a financial relationship with another Facility-Receiving Customer; and/or e. the Facility-Receiving Customer has a financial relationship in the form of issuing guarantees to take over and/or settle part or all of the obligations of another Facility-Receiving Customer in the event that the other Facility-Receiving Customer fails to meet its obligations to the Bank. (3) The controllers as referred to in paragraph (2) letters a and b are controllers as referred to in Article 10 paragraph (3). (4) The classification of groups of Facility-Receiving Customers through financial relationships as referred to in paragraph (2) letters d and e does not apply to:
a. Fund Disbursement facilities granted by the Bank to Facility-Receiving Customers in the Bank's general business activities; and b. the issuance of guarantees by insurance companies, guarantee companies, the Government of the Republic of Indonesia, and/or foreign governments. (5) Banks that violate the provisions as referred to in paragraph (1) are subject to administrative sanctions in the form of written reprimands. (6) In the event that:
a. the Bank has been subject to administrative sanctions as referred to in paragraph (5), and continues to violate the provisions as referred to in paragraph (1); or b. has not been subject to administrative sanctions as referred to in paragraph (5) but based on the Financial Services Authority's assessment there is a violation that requires immediate sanction, the Bank may be subject to administrative sanctions in the form of:

reduction of the Bank's health level;
prohibition on expanding business activities;
prohibition on opening office networks; and/or
suspension of certain business activities.
(7) In the event that:
a. the Bank has been subject to administrative sanctions as referred to in paragraph (5) and/or paragraph (6) and continues to violate the provisions as referred to in paragraph (1); or b. has not been subject to administrative sanctions as referred to in paragraph (5) and/or paragraph (6) but based on the Financial Services Authority's assessment there is a violation that requires immediate sanction, the Bank's principal party may be subject to administrative sanctions in the form of prohibition as a principal party in accordance with the Financial Services Authority Regulation regarding reassessment for principal parties of financial service institutions.

Article 19
(1) Financing disbursement to customers through companies using the pass-through method is exempted from the classification of groups of Facility-Receiving Customers as referred to in Article 18, provided that the following requirements are met. (2) The requirements as referred to in paragraph (1) include:
a. the Bank monitors the feasibility assessment conducted by the company on the customer; b. the Bank has direct risk exposure over the Fund Disbursement disbursed to the customer;
c. the Financing agreement is conducted between the customer and the Bank or with a party authorized to act on behalf of the Bank;
d. payment from the customer is for the Bank's benefit; and e. the company does not guarantee to take over or settle part or all of the customer's obligations in the event that the customer fails to meet its obligations to the Bank.

Article 20
(1) Financing disbursement with the nucleus-plasma partnership pattern with a scheme where the nucleus company guarantees Financing to the plasma is exempted from the classification of groups of Facility-Receiving Customers as referred to in Article 18, provided that the following requirements are met. (2) The requirements as referred to in paragraph (1) include:
a. the nucleus company is not a Related Party with the Bank; b. the plasma company is not a subsidiary or branch owned, controlled, or affiliated with the nucleus company;
c. the plasma company produces components required by the nucleus company as part of the nucleus company's production; and
d. the Financing agreement with the plasma company is conducted directly by the Bank with the plasma company.

Article 21
Provincial governments and regency/city governments, as well as between each regency/city government, are exempted from the classification of groups of Facility-Receiving Customers as referred to in Article 18.

Article 22
(1) Financing disbursement to several Facility-Receiving Customers that are social organizations controlled by 1 (one) party is exempted from the classification of groups of Facility-Receiving Customers as referred to in Article 18 paragraph (2) letter b, provided that the following requirements are met. (2) The requirements as referred to in paragraph (1) include:
a. the controlling party does not receive benefits from the Facility-Receiving Customers; b. control is solely for the application of governance; and
c. the financial reports of the Facility-Receiving Customers are not required to be consolidated in the controlling party's financial reports.

CHAPTER IV
FUND DISBURSEMENT CALCULATION

First Section
General

Article 23
(1) Fund disbursement calculated in the BMPD calculation and Large Fund Disbursement consists of all Fund Disbursement in the banking book and trading book positions. (2) The carrying value used as the calculation for Fund Disbursement is the carrying value of assets plus any fees to be received if any, before being reduced by impairment losses on assets in accordance with accounting standards.

Article 24
(1) Banks are prohibited from conducting netting processes between the value of Fund Disbursement in the banking book position and the trading book position.
(2) Banks may conduct netting processes between long positions and short positions in the trading book position so as to result in a net position for positions that are identical. (3) Banks may conduct netting processes between long and short positions from one counterparty in the trading book position for positions that are not identical, provided that the following requirements are met. (4) The requirements as referred to in paragraph (3) include:
a. the Bank can determine the seniority level of financial instruments; and b. the short position has a junior level or has the same level compared to the long position. (5) In the event that the netting process in the trading book position as referred to in paragraph (2) and paragraph (3) results in a net short position, that position is not calculated in the BMPD calculation.

Second Section
Placements

Article 25
(1) Fund disbursement in the form of Placements is determined as Fund Disbursement to Facility-Receiving Customers who are counterparties.
(2) BMPD for Fund Disbursement in the form of Placements is calculated based on carrying value.
(3) Fund disbursement in the form of Placements as referred to in paragraph (1) does not include Placements in other banks in Indonesia through the interbank money market based on Shariah principles for daily liquidity management purposes.

Third Section
Shariah Hedging Transactions

Article 26
Fund disbursement in the form of Shariah Hedging Transactions is determined as Fund Disbursement to Facility-Receiving Customers who are counterparties.

Article 27
BMPD for Shariah Hedging Transactions as referred to in Article 26 and other transactions that have credit risk due to counterparty failure in the banking book and trading book positions is calculated based on the value of Fund Disbursement for credit risk due to counterparty failure.

Article 28
(1) BMPD for Shariah Hedging Transactions in the trading book position is calculated based on the transaction leg position that is within the scope of Fund Disbursement in the form of long positions. (2) The BMPD calculation in the trading book position as referred to in paragraph (1) is contained in Appendix I which is an inseparable part of this Financial Services Authority Regulation.

Article 29
The BMPD calculation for Shariah Hedging Transactions in the trading book position is the sum of all calculations as referred to in Article 27 and Article 28.

Fourth Section
Shariah Securities

Article 30
(1) Fund disbursement in the form of SBS is determined as Fund Disbursement to Facility-Receiving Customers who are SBS issuers.
(2) BMPD for the purchase of SBS in the banking book and trading book positions is calculated based on carrying value.

Article 31
(1) The determination of the counterparty in the BMPD calculation for Fund Disbursement in the form of SBS purchases that are linked or guaranteed by underlying assets, both in the banking book and trading book positions, is determined based on the SBS purchase amount. (2) Fund disbursement in the form of SBS purchases that are linked or guaranteed by underlying assets with a total nominal value of SBS purchases less than 0.25% (zero point two five percent) of the Bank's Core Capital (tier 1) is determined as Fund Disbursement to the issuer of the SBS linked or guaranteed by underlying assets. (3) Fund disbursement in the form of SBS purchases that are linked or guaranteed by underlying assets with a total nominal value of SBS purchases equal to or more than 0.25% (zero point two five percent) of the Bank's Core Capital (tier 1) is determined as Fund Disbursement to the reference entity. (4) BMPD for SBS linked or guaranteed by underlying assets is calculated using:
a. the nominal value of SBS for SBS as referred to in paragraph (2); or b. the look-through approach calculated proportionally based on the proportion of underlying assets from each reference entity to the SBS as referred to in paragraph (3). (5) In the event that the Bank cannot identify the underlying assets as referred to in paragraph (4) letter b, Fund Disbursement is determined as:
a. Fund Disbursement to the SBS issuer, in the event that there is a proportion of the nominal value of SBS purchases less than 0.25% (zero point two five percent) of the Bank's Core Capital (tier 1); or b. Fund Disbursement to an unidentified party (unknown client), in the event that there is a proportion of the nominal value of SBS purchases equal to or more than 0.25% (zero point two five percent) of the Bank's Core Capital (tier 1). (6) Fund disbursement to unidentified parties (unknown clients) as referred to in paragraph (5) letter b is calculated in its entirety with other Fund Disbursements to unidentified parties (unknown clients) while still considering the BMPD limit for groups of Facility-Receiving Customers as referred to in Article 17 letter b. (7) In the BMPD calculation for Fund Disbursement in the form of SBS purchases linked or guaranteed by underlying assets, the Bank must identify third parties that may cause additional risk factors in the SBS. (8) The Bank may consider several third parties that may cause potential additional risk factors as referred to in paragraph (7). (9) In the event that there are several third parties that may cause additional risk factors as referred to in paragraph (8), the Bank must sum the exposure over SBS linked or guaranteed by underlying assets with each third party.

Article 32
(1) Fund disbursement in the form of SBS in the form of covered sukuk is determined as Fund Disbursement to Facility-Receiving Customers who are issuers of SBS in the form of covered sukuk. (2) BMPD for the purchase of SBS in the form of covered sukuk as referred to in paragraph (1) is calculated based on the nominal value of SBS in the form of covered sukuk, except for the purchase of SBS in the form of covered sukuk that meets the requirements. (3) The requirements as referred to in paragraph (2) include:
a. the issuance of SBS in the form of covered sukuk meets the criteria:

sukuk is issued by a Bank or a housing financing institution and is legally protected to protect SBS holders;
the proceeds from the issuance of SBS in the form of covered sukuk are invested in an asset and are able to cover claims attached to the sukuk during the sukuk period; and
in the event that the sukuk issuer defaults, the investment proceeds obtained are used based on priority for the replacement of principal and payment of returns;
b. having a main underlying asset pool consisting of:
claims to or claims guaranteed by the central government, public sector entities, or multilateral development banks;
residential mortgage financing with a risk weight of at most 35% (thirty-five percent) and having a financing to value ratio of at most 80% (eighty percent); and/or
commercial property financing with a risk weight of at most 100% (one hundred percent) and having a financing to value ratio of at most 60% (sixty percent); and
c. the nominal value of the pool of assets used as the basis for issuing SBS in the form of covered sukuk must exceed the outstanding value of SBS in the form of covered sukuk by at least 10% (ten percent).
(4) The requirements as referred to in paragraph (3) must be met from the beginning of the Fund Disbursement in the form of SBS in the form of covered sukuk until the remaining term of the SBS in the form of covered sukuk. (5) BMPD for the purchase of SBS in the form of covered sukuk that meets the requirements as referred to in paragraph (3) is calculated at a minimum of 20% (twenty percent) of the nominal value of the covered sukuk.

Article 33
(1) The takeover or negotiation of SBS in the form of time export bills is exempted from the BMPD calculation as referred to in Article 6 and Article 10, provided that the following requirements are met. (2) The requirements as referred to in paragraph (1) include:
a. time export bills are issued based on time letters of credit (usance L/C) in accordance with the applicable Uniform Customs and Practice for Documentary Credits (UCP); and b. have been accepted by a Prime Bank.

Fifth Section
Acceptance Bills

Article 34
(1) Fund disbursement in the form of Acceptance Bills is determined as Fund Disbursement to Facility-Receiving Customers which includes:
a. banks if the party settling the bill is another bank; and/or b. customers if the party settling the bill is a customer.
(2) BMPD for Acceptance Bills as referred to in paragraph (1) is calculated at the carrying value of the accepted bill.

Sixth Section
Financing

Article 35
(1) Fund disbursement in the form of Financing is determined as Fund Disbursement to Facility-Receiving Customers who are customers.
(2) BMPD for Financing is calculated based on carrying value.
(3) Fund disbursement in the form of Financing to customers as referred to in paragraph (1) for the takeover of bills in factoring or the purchase of Financing with requirements without a promise to repurchase (without recourse) is the party obligated to settle the receivable. (4) Fund disbursement in the form of Financing to customers as referred to in paragraph (1) for the takeover in factoring or the purchase of Financing with requirements with a promise to repurchase (with recourse) is the party selling the bill or Financing.

Seventh Section
Capital Participation

Article 36
(1) Fund disbursement in the form of Capital Participation is determined as Fund Disbursement to Facility-Receiving Customers who are recipients of Capital Participation. (2) Capital Participation as referred to in paragraph (1) is Capital Participation that is not a capital reduction factor in accordance with the Financial Services Authority Regulation regarding minimum capital adequacy requirements for general Islamic banks. (3) BMPD for Capital Participation as referred to in paragraph (1) is calculated based on the carrying value of the participation.

Eighth Section
Administrative Account Transactions

Article 37
(1) Fund disbursement for Administrative Account Transactions in the form of guarantees, letters of credit (L/C), standby letters of credit (SBLC), Domestic Documentary Letters of Credit (SKBDN), or other similar instruments is determined as Fund Disbursement to Facility-Receiving Customers who are applicants. (2) BMPD for Administrative Account Transactions as referred to in paragraph (1) is calculated as the product of the carrying value of commitment liabilities or contingent liabilities and the credit conversion factor. (3) The minimum value for the credit conversion factor as referred to in paragraph (2) is determined at 10% (ten percent).

Ninth Section
Fund Disbursement to Central Counterparty

Article 38
(1) Fund disbursement to central counterparties inside and outside the country consists of:
a. Fund disbursement for clearing activities; and b. Fund disbursement for non-clearing activities.
(2) Fund disbursement for clearing activities as referred to in paragraph (1) letter a consists of:
a. trade exposures; b. segregated initial margin;
c. non-segregated initial margin;
d. pre-funded default fund contribution; e. unfunded default fund contribution; and f. equity stakes.
(3) The Bank must identify Fund disbursement for clearing activities as referred to in paragraph (2) and sum all Fund disbursement for each central counterparty.
(4) The Bank must sum all Fund disbursement for non-clearing activities as referred to in paragraph (1) letter b for each central counterparty.

Article 39
(1) The BMPD calculation for Fund disbursement to 1 (one) central counterparty is the sum of all calculations for Fund disbursement for clearing activities as referred to in Article 38 paragraph (3) and Fund disbursement for non-clearing activities as referred to in Article 38 paragraph (4). (2) Fund disbursement as referred to in paragraph (1) is determined at a maximum of 25% (twenty-five percent) of the Bank's Core Capital (tier 1).

Article 40
(1) Fund disbursement to central counterparties in the form of Fund disbursement for clearing activities as referred to in Article 38 paragraph (2) is exempted from the classification of groups of Facility-Receiving Customers as referred to in Article 18. (2) Fund disbursement to central counterparties with the category of qualifying central counterparties in the form of Fund disbursement for clearing activities as referred to in Article 38 paragraph (2) is exempted from the BMPD calculation.

Article 41
(1) The BMPD calculation to central counterparties in the form of Fund disbursement for clearing activities as referred to in Article 38 paragraph (2) for:
a. trade exposures, the value of Fund disbursement is calculated based on the type of Fund disbursement in accordance with this Financial Services Authority Regulation; b. segregated initial margin, the value of Fund disbursement is determined at 0 (zero);
c. non-segregated initial margin, the value of Fund disbursement is determined at the nominal value of the initial margin placed;

d. pre-funded default fund contributions, the value of Fund Disbursement is set at the nominal value of default fund contributions; e. unfunded default fund contributions, the value of Fund Disbursement is set at 0 (zero); and f. equity stakes, the value of Fund Disbursement is set at the nominal value. (2) In the event that Fund Disbursement in the form of equity stakes as referred to in paragraph (1) letter f has become a deduction factor for Core Capital (tier 1) of the Bank, the Fund Disbursement is not categorized as Fund Disbursement to a central counterparty. (3) In the event that the Bank acts as a clearing member or a client of a clearing member, the determination of the counterparty in the BMPD calculation in the form of Fund Disbursement for clearing activities as referred to in paragraph (1) is determined based on standards regarding risk-based capital requirements for central counterparties. (4) The BMPD calculation to a central counterparty in the form of Fund Disbursement for non-clearing activities as referred to in Article 38 paragraph (1) letter b is calculated based on the type of Fund Disbursement as regulated in this Financial Services Authority Regulation.

Article 42
(1) Banks that violate the provisions as referred to in Article 24 paragraph (1), Article 31 paragraph (9), Article 38 paragraph (3), and/or paragraph (4) are subject to administrative sanctions in the form of written reprimands. (2) In the event that:
a. the Bank has been subjected to administrative sanctions as referred to in paragraph (1), and continues to violate the provisions as referred to in Article 24 paragraph (1), Article 31 paragraph (9), Article 38 paragraph (3), and/or paragraph (4); or b. has not been subjected to administrative sanctions as referred to in paragraph (1) but based on the assessment of the Financial Services Authority there are violations that require immediate sanctions, the Bank may be subjected to administrative sanctions in the form of:

reduction of the Bank's health level;
prohibition on expanding business activities;
prohibition on opening office networks; and/or
suspension of certain business activities.
(3) In the event that:
a. the Bank has been subjected to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) and continues to violate the provisions as referred to in Article 24 paragraph (1), Article 31 paragraph (9), Article 38 paragraph (3), and/or paragraph (4); or b. has not been subjected to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) but based on the assessment of the Financial Services Authority there are violations that require immediate sanctions, the principal party of the Bank may be subjected to administrative sanctions in the form of prohibition as a principal party in accordance with the Financial Services Authority Regulation regarding reassessment for principal parties of financial service institutions.

CHAPTER V
FUND DISBURSEMENT TO STATE-OWNED ENTERPRISES AND REGION-OWNED ENTERPRISES

Article 43
(1) Fund Disbursement by Banks to State-Owned Enterprises (BUMN) for development purposes is set at a maximum of 30% (thirty percent) of the Bank's Capital.
(2) The relationship between Banks in the form of State-Owned Enterprises (BUMN) or Regional-Owned Enterprises (BUMD) and Facility Recipient Customers in the form of State-Owned Enterprises (BUMN) and/or Facility Recipient Customers in the form of Regional-Owned Enterprises (BUMD) is excluded from the definition of Related Parties as referred to in Article 10, provided that the control relationship is solely caused by direct ownership by the central government or regional government. (3) Among State-Owned Enterprises (BUMN) or among Regional-Owned Enterprises (BUMD) are not treated as a group of Facility Recipient Customers as referred to in Article 18, provided that the control relationship is solely caused by direct ownership by the central government or regional government. (4) In the event that a Bank and a Facility Recipient Customer in the form of a State-Owned Enterprise (BUMN) or Regional-Owned Enterprise (BUMD) has a control relationship as referred to in Article 10, in addition to direct ownership by the central government or regional government, Fund Disbursement to such State-Owned Enterprise (BUMN) or Regional-Owned Enterprise (BUMD) is calculated as BMPD to Related Parties.

CHAPTER VI
CREDIT RISK MITIGATION TECHNIQUES

Article 44
(1) In the event that a Bank acknowledges the existence of collateral, guarantees, suretyship, or financing insurance for micro, small, and medium enterprise financing as a Credit Risk Mitigation Technique in calculating risk-weighted assets for credit risk using the standard approach, the Bank must apply Credit Risk Mitigation Techniques that meet the requirements in the BMPD calculation. (2) In the event that the Facility Recipient Customer and the guarantor or issuer of collateral are other than Related Parties, the application of Credit Risk Mitigation Techniques as referred to in paragraph (1) applies. (3) Banks that violate the provisions as referred to in paragraph (1) are subject to administrative sanctions in the form of written reprimands. (4) In the event that:
a. the Bank has been subjected to administrative sanctions as referred to in paragraph (3), and continues to violate the provisions as referred to in paragraph (1); or b. has not been subjected to administrative sanctions as referred to in paragraph (3) but based on the assessment of the Financial Services Authority there are violations that require immediate sanctions, the Bank may be subjected to administrative sanctions in the form of:

reduction of the Bank's health level;
prohibition on expanding business activities;
prohibition on opening office networks; and/or
suspension of certain business activities.
(5) In the event that:
a. the Bank has been subjected to administrative sanctions as referred to in paragraph (3) and/or paragraph (4) and continues to violate the provisions as referred to in paragraph (1); or b. has not been subjected to administrative sanctions as referred to in paragraph (3) and/or paragraph (4) but based on the assessment of the Financial Services Authority there are violations that require immediate sanctions, the principal party of the Bank may be subjected to administrative sanctions in the form of prohibition as a principal party in accordance with the Financial Services Authority Regulation regarding reassessment for principal parties of financial service institutions.

Article 45
(1) The portion of Fund Disbursement that receives protection from credit risk mitigation instruments or the portion that is guaranteed is set as Fund Disbursement to the guarantor or issuer of collateral. (2) The portion of Fund Disbursement that does not receive protection from credit risk mitigation instruments or the portion that is not guaranteed is set as Fund Disbursement to the Facility Recipient Customer. (3) The guaranteed portion as referred to in paragraph (1) is calculated in BMPD at the value recognized in the Credit Risk Mitigation Technique in the form of:
a. the portion of Fund Disbursement that receives protection from collateral for Fund Disbursement with collateral-based Credit Risk Mitigation Techniques in the simple approach; b. the value of collateral after considering haircuts against each value for Fund Disbursement with collateral-based Credit Risk Mitigation Techniques in the comprehensive approach;
c. the portion of Fund Disbursement that is guaranteed with suretyship for Fund Disbursement with suretyship-based Credit Risk Mitigation Techniques; and
d. the portion of Fund Disbursement that receives protection from guarantee institutions or financing insurance for Fund Disbursement with suretyship-based or financing insurance-based Credit Risk Mitigation Techniques for micro, small, and medium enterprises. (4) The entire portfolio of Fund Disbursement to guarantors or issuers of collateral as referred to in paragraph (1) is set at a maximum of 25% (twenty-five percent) of the Bank's Core Capital (tier 1). (5) The portion of Fund Disbursement to support government programs that is guaranteed by financial service institutions operating in the field of guarantee or insurance in the form of State-Owned Enterprises (BUMN) or Regional-Owned Enterprises (BUMD), including guarantee institutions or Islamic insurance companies that are subsidiaries of guarantee institutions or insurance companies with BUMN status, is excluded from the BMPD calculation.

CHAPTER VII
SPECIFIC BMPD TREATMENT

Article 46
BMPD calculation is excluded for:
a. Fund Disbursement to the central government; b. Deposits at Bank Indonesia; and
c. purchase of SBS issued by the Government of the Republic of Indonesia and/or Bank Indonesia.

Article 47
(1) The portion of Fund Disbursement that receives a guarantee from the central government is excluded from the BMPD calculation.
(2) The guarantee as referred to in paragraph (1) must meet the requirements:
a. unconditional and irrevocable; b. disbursement period in accordance with the guarantee document;
c. has a minimum duration equal to the duration of the Fund Disbursement; and
d. not re-guaranteed.
(3) The Bank must submit a claim against the guarantee received as referred to in paragraph (2) at the latest 7 (seven) working days since the Facility Recipient Customer defaults. (4) The Facility Recipient Customer is declared to have defaulted as referred to in paragraph (3) if:
a. principal, margin/profit share/ujrah/bonus, and/or other charges arrears occur for 90 (ninety) days even though the Fund Disbursement has not yet matured; b. principal, margin/profit share/ujrah/bonus, and/or other charges payments are not received at the time the Fund Disbursement matures; or
c. other requirements other than principal and/or margin/profit share/ujrah/bonus payments are not met, which can cause default.

Article 48
(1) Export-oriented Fund Disbursement to financial institutions that meet requirements is excluded from the BMPD calculation.
(2) The portion of Fund Disbursement that receives a guarantee from financial institutions that meet requirements is excluded from the BMPD calculation.
(3) Financial institutions that meet requirements as referred to in paragraph (1) and paragraph (2) include:
a. owned by the central government; b. their business activities provide financing for national exports; and
c. established by law with sovereign status.
(4) The guarantee as referred to in paragraph (2) must meet the requirements:
a. unconditional and irrevocable; b. disbursement period in accordance with the guarantee document;
c. has a minimum duration equal to the duration of the Fund Disbursement; and
d. not re-guaranteed.
(5) The Bank must submit a claim against the guarantee received as referred to in paragraph (4) at the latest 7 (seven) working days since the Facility Recipient Customer defaults. (6) The Facility Recipient Customer is declared to have defaulted as referred to in paragraph (5) if:
a. principal and/or margin/profit share/ujrah/bonus and/or other charges arrears occur for 90 (ninety) days even though the Fund Disbursement has not yet matured; b. principal and/or margin/profit share/ujrah/bonus and/or other charges payments are not received at the time the Fund Disbursement matures; or
c. other requirements other than principal and/or margin/profit share/ujrah/bonus payments are not met, which can cause default.

Article 49
(1) The portion of Fund Disbursement that is guaranteed by specific collateral and meets requirements is excluded from the BMPD calculation.
(2) Specific collateral as referred to in paragraph (1) consists of:
a. collateral in the form of cash collateral in the form of current accounts, deposits, savings, guarantee deposits and/or gold; and b. collateral in the form of SBS issued by the Government of the Republic of Indonesia and/or Bank Indonesia. (3) The requirements as referred to in paragraph (1) consist of:
a. the collateral is blocked and accompanied by a disbursement power of attorney from the owner of the collateral for the benefit of the Bank receiving the collateral, including partial disbursement to pay arrears of principal installments and/or margin/profit share/ujrah/bonus; b. unconditional and irrevocable;
c. the blocking period as referred to in letter a has a minimum duration equal to the duration of the Fund Disbursement;
d. has a strong legal binding as collateral, free from all other obligations and disputes, not currently guaranteed to other parties, and has a clear guarantee purpose; and e. for cash collateral as referred to in paragraph (2) letter a, it is stored or accounted for at the Bank.

Article 50
(1) The portion of Fund Disbursement to Facility Recipient Customers that receives a guarantee from a Prime Bank that is a Related Party of the Bank is excluded from the BMPD calculation as referred to in Article 6, provided that the guarantee given meets the requirements:
a. in the form of a standby letter of credit (SBLC) issued in accordance with the Uniform Customs and Practice for Documentary Credits or International Standby Practices; b. unconditional and irrevocable;
c. must be payable at the latest 7 (seven) working days since the claim is submitted, including partial payment;
d. has a minimum duration equal to the duration of the Fund Disbursement; and e. not re-guaranteed by the Bank or banks that are not Prime Banks.
(2) The Bank must submit a claim against the guarantee received as referred to in paragraph (1) at the latest 7 (seven) working days since the Facility Recipient Customer defaults. (3) The Facility Recipient Customer is considered to have defaulted as referred to in paragraph (2) if:
a. principal, margin/profit share/ujrah/bonus, and/or other charges arrears occur for 90 (ninety) days even though the Fund Disbursement has not yet matured; b. principal, margin/profit share/ujrah/bonus, and/or other charges payments are not received at the time the Fund Disbursement matures; or
c. other requirements other than principal and/or margin/profit share/ujrah/bonus payments are not met, which can cause default.
(4) The exclusion from BMPD calculation as referred to in paragraph (1) is set at a maximum:
a. 90% (ninety percent) of the Bank's Capital for all Related Parties; or b. 75% (seventy-five percent) of the Bank's Core Capital (tier 1) for other than Related Parties.

Article 51
Fund Disbursement that has become a capital deduction factor in accordance with the Financial Services Authority Regulation regarding minimum capital adequacy requirements for general Islamic banks is excluded from the BMPD calculation.

Article 52
Fund Disbursement whose risk is borne by investor customers is excluded from the BMPD calculation.

CHAPTER VIII
EXCEEDANCE OF BMPD

Article 53
(1) Fund Disbursement by a Bank is categorized as Exceedance of BMPD caused by:
a. reduction of Capital or Core Capital (tier 1) of the Bank; b. exchange rate changes;
c. fair value changes;
d. business mergers, changes in ownership structure and/or changes in management structure that cause changes in Related Parties and/or groups of Facility Recipient Customers; and/or e. changes in regulations. (2) Determination of Facility Recipient Customers in the calculation of Exceedance of BMPD is carried out in accordance with the provisions for calculating Fund Disbursement as referred to in Article 23 to Article 41. (3) Exceedance of BMPD is calculated based on the value recorded on the reporting date.

CHAPTER IX
RESOLUTION OF BMPD VIOLATIONS AND EXCEEDANCE OF BMPD

Article 54
(1) In the event that a Bank commits a BMPD Violation and/or Exceedance of BMPD, the Bank must prepare an action plan for the resolution of the BMPD Violation and/or Exceedance of BMPD. (2) The action plan as referred to in paragraph (1) must contain at least:
a. improvement steps to be implemented by the Bank for the resolution of the BMPD Violation and/or Exceedance of BMPD; and b. target time for resolution.
(3) The action plan as referred to in paragraph (1) is submitted to the Financial Services Authority at the latest:
a. 1 (one) month since the Financial Services Authority establishes that a BMPD Violation has occurred; b. 1 (one) month after the end of the reporting month for Exceedance of BMPD as referred to in Article 53 paragraph (1) letter a, letter b, letter c, and/or letter d; and/or
c. 3 (three) months since the implementation of new regulations for Exceedance of BMPD as referred to in Article 53 paragraph (1) letter e.

Article 55
(1) Banks must resolve BMPD Violations and/or Exceedance of BMPD immediately with a target time for resolution as referred to in Article 54 paragraph (1) letter b established:
a. for BMPD Violations at the latest within a period of 1 (one) month; b. for Exceedance of BMPD as referred to in Article 53 paragraph (1) letter a, letter b, and/or letter c established at the latest 9 (nine) months;
c. for Exceedance of BMPD as referred to in Article 53 paragraph (1) letter d established at the latest 12 (twelve) months; and/or
d. for Exceedance of BMPD as referred to in Article 53 paragraph (1) letter e established at the latest 18 (eighteen) months, since the deadline for submitting the action plan to the Financial Services Authority. (2) In the event that the target time for resolution of the action plan as referred to in paragraph (1) is assessed as impossible to achieve, the Bank, based on the approval of the Financial Services Authority, may establish a different target time for resolution of the action plan from the target time for resolution of the action plan as referred to in paragraph (1).

Article 56
(1) Banks that violate the provisions as referred to in Article 54 paragraph (1), paragraph (2), and/or Article 55 paragraph (1) are subject to administrative sanctions in the form of written reprimands. (2) In the event that a Bank has been subjected to administrative sanctions as referred to in paragraph (1), and continues to violate the provisions as referred to in Article 54 paragraph (1), paragraph (2), and/or Article 55 paragraph (1), the Bank may be subjected to administrative sanctions in the form of:
a. reduction of the Bank's health level; b. prohibition on expanding business activities;
c. prohibition on opening office networks; and/or
d. suspension of certain business activities.
(3) In the event that a Bank has been subjected to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) and continues to violate the provisions as referred to in Article 54 paragraph (1), paragraph (2), and/or Article 55 paragraph (1), the principal party of the Bank may be subjected to administrative sanctions in the form of prohibition as a principal party in accordance with the Financial Services Authority Regulation regarding reassessment for principal parties of financial service institutions.

Article 57
(1) Banks that do not resolve BMPD Violations and/or Exceedance of BMPD in accordance with the action plan as referred to in Article 55 after being warned 2 (two) times by the Financial Services Authority with a grace period of 1 (one) week for each warning are subject to administrative sanctions as referred to in Article 56 paragraph (2) letter d and/or paragraph (3). (2) Banks that do not resolve BMPD Violations other than being subject to sanctions as referred to in paragraph (1), against members of the Board of Commissioners, members of the Board of Directors, Bank employees, shareholders, and other affiliated parties may be given written orders in accordance with the Law regarding the Financial Services Authority. (3) In the event that a Bank does not execute the written order as referred to in paragraph (2), the Bank may be subject to criminal sanctions in accordance with the Law regarding the Financial Services Authority.

CHAPTER X
REPORTING

Article 58
(1) Banks must submit the action plan for the resolution of BMPD Violations and/or Exceedance of BMPD as referred to in Article 54 to the Financial Services Authority online in the form of unstructured reports through the Financial Services Authority reporting system. (2) Submission of the action plan as referred to in paragraph (1) must be carried out in accordance with the time period as referred to in Article 54 paragraph (3).

Article 59
(1) Banks must submit reports on the implementation of the action plan for BMPD Violations and/or Exceedance of BMPD.
(2) Banks must submit reports on the implementation of the action plan as referred to in paragraph (1) to the Financial Services Authority online in the form of unstructured reports through the Financial Services Authority reporting system at the latest 7 (seven) working days after the target time for resolution of the action plan.

Article 60
(1) Banks must submit:
a. Fund Disbursement reports; b. Large Fund Disbursement reports;
c. Large Fund Disbursement exclusion reports; and
d. BMPD Violation or Exceedance of BMPD reports; individually and on a consolidated basis.
(2) Reports as referred to in paragraph (1) individually are submitted every month for the end-of-month position.
(3) Reports as referred to in paragraph (1) on a consolidated basis are submitted every quarter for the end-of-month position in March, June, September, and December. (4) The report format as referred to in paragraph (1) is contained in Appendix II which is an integral part of this Financial Services Authority Regulation.

Article 61
(1) Banks must submit reports as referred to in Article 60 to the Financial Services Authority online in the form of structured reports through the Financial Services Authority reporting system. (2) In the event that the Financial Services Authority reporting system for the submission of structured reports as referred to in paragraph (1) is not yet available, Banks submit reports in accordance with the submission of unstructured reports.

Article 62
(1) Banks must submit reports as referred to in Article 60 paragraph (1) at the latest:
a. the 15th day after the end of the reporting month for individual reports; and b. the end of the month after the end of the reporting month, for consolidated reports. (2) If the submission deadline for reports as referred to in paragraph (1) falls on a Saturday, Sunday, and/or national holiday, the reports are submitted on the next working day.

Article 63
The obligation to submit individual reports as referred to in Article 60 paragraph (1) is first carried out for the end-of-month position of January 2022.

Article 64
(1) In the event that there is a violation in the implementation of this Financial Services Authority Regulation that has not been reported in the reporting period of the occurrence of a BMPD Violation or Exceedance of BMPD, the Bank must correct the BMPD Violation or Exceedance of BMPD report, and the quarterly publication report in accordance with the Financial Services Authority Regulation regarding transparency and publication of bank reports. (2) Corrections to BMPD Violation or Exceedance of BMPD reports and quarterly publication reports as referred to in paragraph (1) are submitted to the Financial Services Authority online through the Financial Services Authority reporting system at the latest for the next period since the correction is established by the Financial Services Authority.

Article 65
(1) Banks must have and account for a detailed list of Related Parties.
(2) Banks must submit the detailed list of Related Parties as referred to in paragraph (1) online through the Financial Services Authority reporting system if there are changes, for end-of-month positions in June and December. (3) The detailed list and changes of Related Parties as referred to in paragraph (1) and paragraph (2) must be submitted at the latest at the end of the month after the end-of-month position of the report. (4) The Financial Services Authority may at any time request Banks to submit the detailed list and changes of Related Parties as referred to in paragraph (1) and paragraph (2).

Article 66
Submission of unstructured reports is directed to:
a. the Department of Islamic Bank Supervision or the Regional Office of the Financial Services Authority in Jakarta, for Banks headquartered in the Special Capital Region of Jakarta Province; or b. the Regional Office of the Financial Services Authority or the local Financial Services Authority Office, in accordance with the area where the Bank's headquarters is located.

Article 67
(1) Banks that violate the provisions as referred to in Article 58, Article 59, Article 60 paragraph (1), Article 61 paragraph (1), Article 62 paragraph (1), Article 64 paragraph (1), Article 65 paragraph (1), paragraph (2), and/or paragraph (3) are subject to administrative sanctions in the form of written reprimands. (2) In the event that:
a. the Bank has been subjected to administrative sanctions as referred to in paragraph (1), and continues to violate the provisions as referred to in Article 58, Article 59, Article 60 paragraph (1), Article 61 paragraph (1), Article 62

paragraph (1), Article 64 paragraph (1), Article 65 paragraph (1), paragraph (2), and/or paragraph (3); or b. has not been subjected to administrative sanctions as referred to in paragraph (1) but based on the assessment of the Financial Services Authority there are violations that need to be sanctioned immediately, the Bank may be subjected to administrative sanctions in the form of:

reduction of the Bank's health level;
prohibition on expanding business activities;
prohibition on opening office networks; and/or
suspension of certain business activities.
(3) In the event that:
a. The Bank has been subjected to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) and continues to violate regulations as referred to in Article 58, Article 59, Article 60 paragraph (1), Article 61 paragraph (1), Article 62 paragraph (1), Article 64 paragraph (1), Article 65 paragraph (1), paragraph (2), and/or paragraph (3); or b. has not been subjected to administrative sanctions as referred to in paragraph (1) and/or paragraph (2) but based on the assessment of the Financial Services Authority there are violations that need to be sanctioned immediately, the Bank's principal parties may be subjected to administrative sanctions in the form of prohibition as principal parties in accordance with Financial Services Authority Regulations regarding re-evaluation for principal parties of financial service institutions.

Article 68
(1) Banks declared late in submitting the action plan for BMPD Violations as referred to in Article 58 paragraph (2), after the deadline as referred to in Article 54 paragraph (3) letter a, shall be subjected to administrative sanctions in the form of a fine of Rp35,000,000.00 (thirty-five million rupiah) per report per working day of delay or a maximum of Rp500,000,000.00 (five hundred million rupiah).

(2) Banks declared late in submitting:
a. the action plan for BMPD Exceedance as referred to in Article 58 paragraph (2), after the deadline as referred to in Article 54 paragraph (3) letters b and c; and/or b. the implementation report of the action plan after the deadline as referred to in Article 59 paragraph (2), shall be subjected to administrative sanctions in the form of a fine of Rp3,500,000.00 (three million five hundred thousand rupiah) per report per working day of delay or a maximum of Rp50,000,000.00 (fifty million rupiah).

Article 69
(1) Banks late in submitting reports as referred to in Article 62 paragraph (1) shall be subjected to administrative sanctions in the form of a fine of Rp1,000,000.00 (one million rupiah) per working day of delay or a maximum of Rp50,000,000.00 (fifty million rupiah). (2) Banks late in submitting the detailed list of Related Parties after the deadline as referred to in Article 65 paragraph (3) shall be subjected to administrative sanctions in the form of a fine of Rp1,000,000.00 (one million rupiah) per working day of delay or a maximum of Rp100,000,000.00 (one hundred million rupiah).

Article 70
In the event that Banks are subjected to administrative sanctions in the form of fines as referred to in Article 68 and Article 69, Banks must still submit the relevant reports.

Article 71
(1) Banks that do not implement resolution steps according to corrections set by the Financial Services Authority as referred to in Article 64, 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 subjected to administrative sanctions as referred to in Article 67 paragraph (2) letter d and/or paragraph (3). (2) Banks that do not implement resolution steps according to corrections set by the Financial Services Authority, in addition to being subjected to sanctions as referred to in paragraph (1), against members of the Board of Commissioners, members of the Board of Directors, Bank employees, shareholders, and other affiliated parties may be given written orders in accordance with the Law regarding the Financial Services Authority. (3) In the event that Banks do not implement written orders as referred to in paragraph (2), Banks may be subjected to criminal sanctions in accordance with the Law regarding the Financial Services Authority.

CHAPTER XI
OTHER PROVISIONS

Article 72
In certain considerations, the Financial Services Authority may establish other policies related to regulations that already exist in this Financial Services Authority Regulation in accordance with regulations concerning government administration.

Article 73
Regulations on BMPD for Sharia business units in accordance with Financial Services Authority Regulations regarding maximum limits for credit provision and large fund disbursement for commercial banks with attention to:
a. the definition of Fund Disbursement in accordance with Sharia principles; and b. the exclusion of BMPD calculations against Fund Disbursements whose risks are borne by investor customers, in accordance with this Financial Services Authority Regulation.

CHAPTER XII
TRANSITIONAL PROVISIONS

Article 74
(1) At the time this Financial Services Authority Regulation takes effect, Fund Disbursement reports as referred to in Article 60 paragraph (1) letter a and BMPD Violation or BMPD Exceedance reports as referred to in Article 60 paragraph (1) letter d shall be submitted using report formats and filling guidelines in accordance with:
a. Financial Services Authority Circular Letter regarding prudential principles and reports in the context of implementing risk management on a consolidated basis for banks conducting control over subsidiaries; and b. Financial Services Authority Circular Letter regarding reporting by Islamic commercial banks and Sharia business units through the Financial Services Authority reporting system, with certain adjustments until the report formats are available in the Financial Services Authority reporting system as stated in the formats and filling guidelines in Appendix II of this Financial Services Authority Regulation. (2) Certain adjustments as referred to in paragraph (1) include adjustments to reference codes and capital classification.

CHAPTER XIII
CLOSING PROVISIONS

Article 75
At the time this Financial Services Authority Regulation takes effect:
a. Bank Indonesia Regulation Number 7/3/PBI/2005 concerning Maximum Limits for Credit Provision by Commercial Banks (State Gazette of the Republic of Indonesia Year 2005 Number 13, Supplement to the State Gazette of the Republic of Indonesia Number 4472) as amended by Bank Indonesia Regulation Number 8/13/PBI/2006 concerning Amendments to Bank Indonesia Regulation Number 7/3/PBI/2005 concerning Maximum Limits for Credit Provision by Commercial Banks (State Gazette of the Republic of Indonesia Year 2006 Number 70, Supplement to the State Gazette of the Republic of Indonesia Number 4639), and its implementing regulations; and b. Financial Services Authority Regulation Number 15/POJK.03/2018 concerning Maximum Limits for Credit Provision or Maximum Limits for Fund Disbursement by Banks to Encourage the Growth of the Tourism Sector and Increase Foreign Exchange Reserves (State Gazette of the Republic of Indonesia Year 2018 Number 137, Supplement to the State Gazette of the Republic of Indonesia Number 6240). are repealed and declared invalid.

Article 76
This Financial Services Authority Regulation takes effect on January 1, 2022.

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

To ensure that everyone knows, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on December 17, 2021
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Promulgated in Jakarta on December 21, 2021
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2021 NUMBER 277

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 26 /POJK.03/2021
CONCERNING
MAXIMUM FUND DISBURSEMENT AND LARGE FUND DISBURSEMENT FOR ISLAMIC COMMERCIAL BANKS

I. GENERAL
One of the causes of Bank business failure is Fund Disbursement not supported by the Bank's ability to effectively manage Fund Disbursement concentration. Counterparties experiencing sudden default can endanger the Bank's solvency. To reduce the potential for Bank business failure as a result of Fund Disbursement concentration, Banks are required to spread and diversify the Fund Disbursement portfolio, especially through limiting Fund Disbursement, both to Related Parties and to non-Related Parties, by a certain percentage of the Bank's Capital or Core Capital (tier 1), known as BMPD and Large Fund Disbursement. The experience of the global financial crisis shows that Banks do not have consistent measurement, grouping methods, and controls over Bank Fund Disbursement, especially Large Fund Disbursement to Facility Recipient Customers or a group of Facility Recipient Customers. Thus, the calculation standards for Fund Disbursement and the establishment of Fund Disbursement limits need to be refined with international standards while still paying attention to national interests. The Large Exposure framework is a complement to the risk-based capital standard framework. This is because the risk-based capital standard is not specifically designed to protect Banks from large losses caused by default by specific parties. The minimum capital provision requirement, which is pillar 1 of the risk-based capital standard framework, assumes that Banks have a granular portfolio so that there is no concentration risk considered in calculating the minimum capital provision requirement. However, idiosyncratic risks related to Large Fund Disbursement to one party may exist in the Bank's portfolio. Thus, the Large Fund Disbursement framework is necessary to protect Banks from large losses caused by the default of one party and/or a specific business group. Meanwhile, to increase Indonesia's economic growth and national competitiveness, efforts are needed to encourage the intermediary function of Sharia banking by providing relaxations or exemptions in the implementation of BMPD and Large Fund Disbursement while still paying attention to prudential principles. The aforementioned relaxations or exemptions include Fund Disbursement to State-Owned Enterprises (BUMN) for development purposes including national strategic tourism areas and halal industrial areas, export-oriented Fund Disbursement to increase foreign exchange, Fund Disbursement guaranteed by Prime Banks, Fund Disbursement whose risks are borne by investor customers, and Fund Disbursement to customers with core-plasma partnership patterns and to customers in the form of organizations controlled by 1 (one) party.

II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.

Article 2
Paragraph (1)
Large Fund Disbursement is also called large exposure.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Letter a
Sufficiently clear.
Letter b
Reference entity is the party receiving facilities or having payment obligations from the underlying assets, including:
a. the issuer of SBS designated as the underlying asset; and b. the party obligated to settle receivables from Financing or receivables transferred and designated as the underlying asset. Letter c Sufficiently clear. Letter d Sufficiently clear. Letter e Sufficiently clear. Letter f Sufficiently clear. Letter g Sufficiently clear.

Article 3
Paragraph (1)
The application of prudential principles and risk management aims to ensure that Fund Disbursement to Related Parties, Large Fund Disbursement, and Fund Disbursement to other parties having interests in the Bank are carried out on an arm's length basis, adjusted to the Bank's capital adequacy, and are not significantly concentrated to specific Facility Recipient Customers or groups of Facility Recipient Customers. Other parties having interests in the Bank include Bank officials or employees and their families. Paragraph (2) Sufficiently clear. Paragraph (3) Letter a In conducting selection and feasibility assessment, the Bank must ensure the availability of sufficient information including data and information regarding shareholders, management, business group structure, and financial conditions of Facility Recipient Customers and/or groups of Facility Recipient Customers. Letter b Fund Disbursement limits are set at the highest according to the limits regulated in this Financial Services Authority Regulation. Fund Disbursement limits are set based on the impact analysis of Fund Disbursement on the Bank's financial position statement (balance sheet) structure and risk profile. The impact analysis on the financial position statement (balance sheet) structure and the Bank's risk profile is conducted by considering the size, type, maturity, and diversification of the entire Fund Disbursement portfolio so as to prevent the Fund Disbursement portfolio from being concentrated on one specific Facility Recipient Customer or group of Facility Recipient Customers. Letter c The management information system must enable the Bank to timely identify Fund Disbursement concentration, especially to Related Parties, Large Fund Disbursement, and/or Fund Disbursement to other parties having interests in the Bank. In addition, the management information system must include the availability of a reporting system regarding Fund Disbursement that exceeds or is estimated to exceed the Fund Disbursement limits. Letter d Fund Disbursement monitoring systems include:

compliance with Fund Disbursement limits;
adequacy of collateral compared to Fund Disbursement; and
identification of Fund Disbursement quality.
Letter e
Control measures include:
addition of Capital or Core Capital (tier 1) of the Bank to address increased risk exposure;
syndication; and/or
asset securitization.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
The frequency of review can be increased according to the development of Fund Disbursement risk concentration. Significant changes include a decrease in Bank capital that affects Fund Disbursement risk concentration. Paragraph (6) Sufficiently clear.

Article 4
Letter a
Obligations or requirements include the form of obligations or requirements established for Fund Disbursement both recorded in the financial position statement (balance sheet) and commitment and contingency reports. Letter b Sufficiently clear.

Article 5
Sufficiently clear.

Article 6
Sufficiently clear.

Article 7
Paragraph (1)
General Fund Disbursement procedures are procedures applied at the Bank and apply equally to all Facility Recipient Customers while still providing fair benefits for the Bank. Paragraph (2) Sufficiently clear. Paragraph (3) Low-quality assets are assets that:

have less active, doubtful, or non-performing quality; and/or
have undergone Financing restructuring, in accordance with Financial Services Authority Regulations regarding the assessment of asset quality for Islamic commercial banks and Sharia business units.

Article 8
Less active, doubtful, or non-performing quality is quality in accordance with Financial Services Authority Regulations regarding the assessment of asset quality for Islamic commercial banks and Sharia business units.

Article 9
Sufficiently clear.

Article 10
Paragraph (1)
Letter a
Sufficiently clear.
Letter b
Example:
Company "A" is owned by Bank "B" where Bank "B" acts as the controller of company "A". Thus, company "A" is a Related Party of Bank "B".
Letter c
Example:
Company "A" acts as the controller of Bank "B" and at the same time company "A" also acts as the controller of company "C". Thus, company "C" is a Related Party of Bank "B". Letter d Bank Executive Officials are division heads, regional office heads, branch office heads, functional office heads with the lowest position equivalent to branch office heads, heads of risk management work units, heads of compliance work units, heads of internal audit work units, and/or other equivalent officials. Letter e Family relationships horizontally or vertically are:

biological/step/adoptive parents;
biological/step/adoptive siblings;
biological/step/adoptive children;
biological/step/adoptive grandparents;
biological/step/adoptive grandchildren;
biological/step/adoptive siblings of parents;
husband or wife;
parents-in-law;
husband or wife of biological/step/adoptive children;
grandparents of husband or wife;
husband or wife of biological/step/adoptive grandchildren; or
biological/step/adoptive siblings of husband or wife along with the husband or wife of the said sibling.
Letter f
Sufficiently clear.
Letter g
Sufficiently clear.
Letter h
The amount of 50% (fifty percent) or more is calculated from the cumulative total of directors and/or commissioners.
Letter i
Sufficiently clear.
Letter j
Sufficiently clear.
Letter k
Financial relationships are analyzed from several factors, namely:
the existence of financial assistance from the Bank and/or Related Parties or financial assistance to the Bank and/or other Related Parties with requirements that cause the party providing financial assistance to have the ability to determine the strategic policy of the company receiving financial assistance;
the existence of significant business chain linkages in the Bank's or Related Party's business operations with other companies so that there is dependency between one party and another party that causes:
a. one party is unable to easily transfer business transactions to another party; and b. the inability to easily transfer business transactions causes the cash flow of one party to experience significant disruption so as to experience difficulties in fulfilling obligations; and/or
the existence of credit risk transfer through guarantees where the guarantor will take over part or all of the financial risks of the guaranteed party.
Letter l
Guarantee is a promise issued by one party to take over and/or settle part or all of the obligations of the facility recipient party in the event the facility recipient party fails to fulfill obligations (default). Letter m Sufficiently clear. Letter n Re-guarantee is also known as counter guarantee. Letter o Sufficiently clear. Paragraph (2) Joint control is joint control by owners over subsidiaries based on contractual agreements. Joint control must be proven by the existence of a written agreement or commitment from owners to provide financial and non-financial support according to their respective ownership. Indirectly owning shares means controlling or owning shares jointly or through other parties, including:
a. shares of the Bank or other companies owned by other parties whose voting rights can be used or controlled by the controller; b. shares of the Bank or other companies owned by parties controlled by the controller;
c. shares of the Bank or other companies owned by parties affiliated with the controller;
d. shares of the Bank or other companies owned by subsidiaries of companies controlled by the controller; e. shares of the Bank or other companies owned by parties acting on behalf of and for the controller (nominee shares) based or not based on certain agreements; f. shares of the Bank or other companies owned by other parties whose transfer requires approval from the controller; g. shares of other companies owned by the Bank through companies controlled by the Bank in a hierarchical manner up to the last company (ultimate subsidiary); h. shares of the Bank or other companies other than shares as referred to in letters a through g that are controlled by the Bank or controller. Parties affiliated with the controller as referred to in letter c are:
a. members of the board of commissioners, members of the board of directors, or equivalents or their proxies, officials, or employees of the controlling company; b. managers, supervisors, administrators, or their proxies, officials, or employees of the controlling company, specifically for companies with a cooperative legal entity status;
c. parties providing services to the controlling company, including the Sharia supervisory board, public accountants, appraisers, legal consultants, and other consultants proven to be controlled by the controller;
d. parties having family relationships with the controller through marriage and/or lineage; or e. parties who, in the assessment of the Financial Services Authority, contribute to influencing the management of the controller, including shareholders and their families, families of commissioners, families of supervisors, families of directors, and families of managers. Shares are all types of shares having voting rights. Letter a Sufficiently clear. Letter b Sufficiently clear. Letter c Cooperating or taking actions in concert to achieve common goals in controlling the Bank or other companies is known as acting in concert. Letter d Sufficiently clear. Letter e Sufficiently clear. Letter f Strategic policy is policy concerning the establishment of direction and goals of business implementation that has significant impact. Having the ability to determine is known as controlling influence. Letter g Sufficiently clear. Letter h Sufficiently clear. Paragraph (3) Sufficiently clear.

Article 11
Letter a
Fund Disbursement facilities provided by the Bank to Facility Recipient Customers in the Bank's general business activities include financing and/or guarantees provided in various forms. Examples of guarantees provided in various forms are bank guarantees or acceptances. Letter b Sufficiently clear.

Article 12
Sufficiently clear.

Article 13
Letter a
Example:
Bank "A" controls pension fund "B". The legal entity owned by pension fund "B" is not a Related Party of Bank "A" as long as:

there is no other direct control from Bank "A"; and/or
there is no control from pension fund "B" other than due to ownership relationships.
Letter b
Sufficiently clear.

Article 14
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Letter a
Independent commissioners are independent commissioners in accordance with regulations concerning the implementation of good corporate governance for Islamic commercial banks and Sharia business units. Letter b Sufficiently clear. Letter c Sufficiently clear. Letter d Sufficiently clear.

Article 15
Sufficiently clear.

Article 16
Sufficiently clear.

Article 17
Sufficiently clear.

Article 18
Paragraph (1)
Banks may have Fund Disbursement to a group of Facility Recipient Customers with certain control relationships. Such control relationships cause that if one Facility Recipient Customer from the group of Facility Recipient Customers experiences default, all Facility Recipient Customers in the group of Facility Recipient Customers may also experience default. Thus, the group of Facility Recipient Customers must be treated as one party. Paragraph (2) Letter a Sufficiently clear.

Letter b
Example:
Company "A" and company "B" receive Fund Disbursement from the Bank, and each of these companies has 25% (twenty-five percent) or more of its shares owned by company "C". Therefore, company "A" and company "B" are grouped into 1 (one) group of Facility Recipient Customers. In the event that company "C" is a Facility Recipient Customer of the Bank, then company "A", company "B", and company "C" are grouped into 1 (one) group of Facility Recipient Customers. Letter c Clearly stated. Letter d Financial relationships between Facility Recipient Customers are analyzed based on several factors, namely:

the existence of financial assistance from one Facility Recipient Customer to another Facility Recipient Customer under terms that cause the Facility Recipient Customer providing the financial assistance to have the ability to determine (controlling influence) the strategic policy of the Facility Recipient Customer receiving the financial assistance;
the existence of significant business chain linkages in the business operations of one Facility Recipient Customer with another Facility Recipient Customer, resulting in interdependence among Facility Recipient Customers that causes:
a) one of the Facility Recipient Customers 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 of the Facility Recipient Customers to experience significant disruption, thereby encountering difficulties in meeting obligations; and/or
the existence of credit risk transfer through guarantees, where one Facility Recipient Customer acting as guarantor will take over part or all of the financial risks of the guaranteed Facility Recipient Customer.
Letter e
Guarantee means a promise issued by a Facility Recipient Customer to take over and/or settle part or all of the obligations of another Facility Recipient Customer in the event of default. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) Clearly stated. Paragraph (7) Clearly stated.
Article 19
Paragraph (1)
Customers through companies using the channeling method, i.e., customers (end-users).
Companies using the channeling method include financing companies or cooperatives.
Paragraph (2)
Letter a
Clearly stated.
Letter b
The Bank has direct risk, namely if the quality of the Fund Disbursement distributed by the Bank to customers (end-users) using the channeling method through financing institutions directly reflects the current risks of each customer (end-user). Letter c Financing agreements conducted between customers and the Bank or with authorized parties, including the pledging of collateral, are conducted for the benefit of the Bank so that the Bank can directly execute the collateral in the event of breach of contract. Letter d Payments from customers (end-users) for the Bank's profit are not included, namely the spread arising from the difference in yield rates received by the Bank and the financing institution, which is a service for the financing institution in managing Financing. Letter e Clearly stated.
Article 20
Paragraph (1)
The core-plasma partnership pattern is a development pattern using a core company that helps guide surrounding people's companies as plasma companies in a mutually beneficial, integrated, and sustainable cooperation system. Paragraph (2) Clearly stated.
Article 21
Based on the Law on Regional Government, provincial and district/city governments are organized based on the principle of autonomy, among others, manifested in the organization of government affairs that are the authority of each region, including the transfer of regional financial resources and the regional revenue and expenditure budget.
Article 22
Paragraph (1)
Social organizations include organizations operating in the fields of education and health, among others.
Paragraph (2)
Letter a
Clearly stated.
Letter b
The term "implementation of good corporate governance" refers to the mechanism to ensure that the organization is run based on the social organization values set by the social organization controller. Letter c Clearly stated.
Article 23
Paragraph (1)
Banking book and trading book positions are in accordance with the Financial Services Authority Regulation regarding minimum capital adequacy requirements for general Islamic banks. Paragraph (2) Clearly stated.
Article 24
Paragraph (1)
Clearly stated.
Paragraph (2)
Identical means there is at least similarity in issuer, yield rate, maturity, and currency type.
Paragraph (3)
Clearly stated.
Paragraph (4)
Letter a
In determining the seniority level of financial instruments, the Bank allocates the financial instrument into general seniority level groups that reflect the priority of claim rights. Letter b Clearly stated. Paragraph (5) Clearly stated.
Article 25
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Deposits in other banks in Indonesia for daily liquidity management purposes are for a maximum of 14 (fourteen) days.
Article 26
Clearly stated.
Article 27
The calculation of the value of Fund Disbursement for credit risk due to counterparty failure (counterparty credit risk) is in accordance with the Financial Services Authority regulations regarding guidelines for calculating net amounts of Shariah hedging transactions in the calculation of risk-weighted assets for credit risk using the standardized approach for general Islamic banks.
Article 28
Paragraph (1)
The calculation of BMPD for the Bank on a consolidated basis in Shariah Hedging Transactions, in the event that the Bank has Subsidiary Companies exposed to equity and/or commodity risks, also takes into account the aforementioned risks, but only the long transaction leg that falls within the scope of Fund Disbursement, i.e., the long position. Paragraph (2) Clearly stated.
Article 29
Clearly stated.
Article 30
Clearly stated.
Article 31
Paragraph (1)
The term "SBS linked to or guaranteed by underlying assets" refers to SBS whose price or value is determined based on the price or value of a specific instrument designated as the underlying asset. Examples of such SBS include Shariah Asset-Backed Securities (EBA) and Shariah mutual funds. Paragraph (2) Example: Bank "A" buys Shariah EBA "XYZ" or Shariah mutual fund "PQR" from PT "B" with a total nominal purchase value of less than 0.25% (zero point two five percent) of the Core Capital (tier 1) of Bank "A". The Fund Disbursement in the form of purchasing Shariah EBA or Shariah mutual fund is designated as Fund Disbursement to the issuer of Shariah EBA "XYZ" or the investment manager of Shariah mutual fund "PQR". Paragraph (3) Example 1: Bank "A" buys Shariah EBA "XYZ" from PT "B" with a total nominal purchase value equal to or greater than 0.25% (zero point two five percent) of the Core Capital (tier 1) of Bank "A". The underlying asset of Shariah EBA "XYZ" is a financing portfolio consisting of financing to PT "Alfa", PT "Beta", and PT "Gama". Thus, the Fund Disbursement in the form of purchasing EBA "XYZ" is designated as Fund Disbursement to PT "Alfa", PT "Beta", and PT "Gama". Example 2: Bank "A" buys mutual fund "PQR" from PT "B" with a total nominal purchase value equal to or greater than 0.25% (zero point two five percent) of the Core Capital (tier 1) of Bank "A". The underlying asset of mutual fund "PQR" consists of sukuk of PT "Alfa" and sukuk of PT "Beta". Thus, the Fund Disbursement in the form of purchasing mutual fund "PQR" is designated as Fund Disbursement to PT "Alfa" and PT "Beta". Paragraph (4) Letter a Clearly stated. Letter b Banks using the look-through approach must demonstrate that the consideration of regulatory arbitrage does not affect the decision to use the look-through approach. Examples of the look-through approach are contained in Appendix I, which is an integral part of this Financial Services Authority Regulation. Paragraph (5) Letter a Example 1: Bank "A" buys Shariah EBA "XYZ" from PT "B" with a total nominal purchase value equal to or greater than 0.25% (zero point two five percent) of the Core Capital (tier 1) of Bank "A". The underlying asset of Shariah EBA "XYZ" is a financing portfolio consisting of financing to PT "Alfa" and PT "Beta" with a proportion of nominal purchase value for each equal to or greater than 0.25% (zero point two five percent) of the Core Capital (tier 1) of the Bank, and financing to parties that cannot be identified by Bank "A" with a proportion of nominal purchase value less than 0.25% (zero point two five percent) of the Core Capital (tier 1) of the Bank. Thus, the Fund Disbursement in the form of purchasing Shariah EBA "XYZ" is designated as Fund Disbursement to PT "Alfa", PT "Beta", and the issuer of Shariah EBA "XYZ". Example 2: Bank "A" buys Shariah mutual fund "PQR" from PT "B" with a total nominal purchase value equal to or greater than 0.25% (zero point two five percent) of
the Core Capital (tier 1) of Bank "A". The underlying asset of Shariah mutual fund "PQR" consists of sukuk of PT "Alfa" and sukuk of PT "Beta" with a proportion of nominal purchase value for each equal to or greater than 0.25% (zero point two five percent) of the Core Capital (tier 1) of the Bank, and sukuk to parties that cannot be identified by Bank "A" with a proportion of nominal purchase value less than 0.25% (zero point two five percent) of the Core Capital (tier 1) of the Bank. Thus, the Fund Disbursement in the form of purchasing Shariah mutual fund "PQR" is designated as Fund Disbursement to PT "Alfa", PT "Beta", and the issuer of Shariah mutual fund "PQR". Letter b Example 1: Bank "A" buys Shariah EBA "XYZ" from PT "B" with a total nominal purchase value equal to or greater than 0.25% (zero point two five percent) of the Core Capital (tier 1) of Bank "A". The underlying asset of Shariah EBA "XYZ" is a financing portfolio consisting of financing to PT "Alfa", PT "Beta", and unidentified parties by Bank "A" with a proportion of nominal purchase value for each equal to or greater than 0.25% (zero point two five percent) of the Core Capital (tier 1) of the Bank. Thus, the Fund Disbursement in the form of purchasing Shariah EBA "XYZ" is designated as Fund Disbursement to PT "Alfa", PT "Beta", and unidentified parties (unknown client). Example 2: Bank "A" buys Shariah mutual fund "PQR" from PT "B" with a total nominal purchase value equal to or greater than 0.25% (zero point two five percent) of the Core Capital (tier 1) of Bank "A". The underlying asset of Shariah mutual fund "PQR" consists of sukuk of PT "Alfa", PT "Beta", and parties that cannot be identified by Bank "A" with a proportion of nominal purchase value for each equal to or greater than 0.25% (zero point two five percent) of the Core Capital (tier 1) of the Bank. Thus, the Fund Disbursement in the form of purchasing Shariah mutual fund "PQR" is designated as Fund Disbursement to PT "Alfa", PT "Beta", and unidentified parties (unknown client). Paragraph (6) Clearly stated. Paragraph (7) Examples of third parties include originators, investment managers, liquidity providers, and credit protection providers. Paragraph (8) Clearly stated. Paragraph (9) Clearly stated.
Article 32
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Letter a
Clearly stated.
Letter b
The terms "central government, public sector entities, or multilateral development banks", "residential mortgage financing", and "commercial property financing" are in accordance with Financial Services Authority regulations regarding the calculation of risk-weighted assets for credit risk using the standardized approach for general Islamic banks. Letter c A collection of assets used as the basis for issuing SBS in the form of covered sukuk may also consist of:
substitute assets, namely cash or short-term liquid assets held as a substitute for the primary asset collection with the aim of enhancing the value of the asset collection (cover pool); or
Shariah Hedging Transactions conducted as a hedge against risks arising from SBS transactions in the form of covered sukuk.
Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Article 33
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
Clearly stated.
Letter b
Prime Banks have:
a. an investment rating given by a rating agency, at minimum:

BBB- based on Standard and Poor's assessment;
Baa3 based on Moody's assessment;
BBB- based on Fitch assessment; or
an investment rating equivalent to items 1), 2), and/or 3) based on the assessment of a rating agency recognized by the Financial Services Authority,
based on the assessment of the long-term business prospects of the bank; and b. total assets included in the list of the 200 (two hundred) largest in the world based on information contained in the banker's almanac.
Article 34
Paragraph (1)
Clearly stated.
Paragraph (2)
The book value of accepted bills is the claim value against the Facility Recipient Customer (applicant) or the guarantor.
Article 35
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Example:
Bank "A" takes over the claim of PT "Z" against PT "X" with without recourse terms of Rp150,000,000,000.00 (one hundred fifty billion rupiah), then the BMPD of Bank "A" is designated as Fund Disbursement to PT "X". Paragraph (4) Example:
Bank "A" takes over the claim of PT "Z" against PT "X" with with recourse terms of Rp150,000,000,000.00 (one hundred fifty billion rupiah), then the BMPD of Bank "A" is designated as Fund Disbursement to PT "Z".
Article 36
Clearly stated.
Article 37
Paragraph (1)
Clearly stated.
Paragraph (2)
Credit conversion factors are in accordance with Financial Services Authority regulations regarding the calculation of risk-weighted assets for credit risk using the standardized approach for general Islamic banks. Paragraph (3) Clearly stated.
Article 38
Paragraph (1)
Domestic central counterparties are in accordance with regulations regarding the organization of central counterparties for over-the-counter interest rate and exchange rate derivative transactions. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Other Fund Disbursements from non-clearing activities include financing facilities, Financing, and guarantees.
Article 39
Clearly stated.
Article 40
Paragraph (1)
Clearly stated.
Paragraph (2)
Qualifying central counterparty means an entity that has a license to operate as a central counterparty, including a license to obtain exemptions, and obtains a license from the appropriate regulator or supervisor to operate as a central counterparty in accordance with the products offered. This refers to the provision that central counterparties:
a. are based on regulations issued by regulators; and b. are prudentially supervised by relevant supervisors, in jurisdictions that have regulations and rules consistent with the Committee on Payment and Settlement Systems – International Organization of Securities Commissions Principles for Financial Market Infrastructures, and have been applied continuously.
Article 41
Paragraph (1)
Letter a
Example: The calculation of the value of Fund Disbursement in the form of Shariah Hedging Transactions is calculated based on the value of Fund Disbursement for credit risk due to counterparty failure. Letter b If the initial margin submitted to the central counterparty is separated from the records held by the central counterparty so as to avoid bankruptcy risk, the Bank will not lose the initial margin even if the central counterparty breaches the contract. Thus, the initial margin submitted by the Bank to the central counterparty can be excluded from the BMPD calculation. Letter c Clearly stated. Letter d The value of Fund Disbursement in the form of pre-funded default fund contributions can be changed if the Fund Disbursement is given to qualifying central counterparties and non-qualifying central counterparties. Letter e Clearly stated. Letter f Clearly stated. Paragraph (2) Clearly stated. Paragraph (3) Standards regarding risk-based capital adequacy requirements for central counterparties refer to the document regarding Capital Requirements for Bank Exposures to Central Counterparties issued by the Basel Committee on Banking Supervision. Paragraph (4) Clearly stated.
Article 42
Clearly stated.
Article 43
Paragraph (1)
Fund Disbursement to State-Owned Enterprises (BUMN) for development purposes includes Fund Disbursement for:
a. food procurement; b. procurement of very simple housing;
c. procurement, provision and/or management of oil and gas and other equivalent alternative energy sources;
d. procurement, provision and/or management of water; e. procurement, provision and/or management of electricity; f. procurement and/or processing of export-oriented commodities; g. procurement of supporting infrastructure for land, sea, and air transportation in the form of road, bridge, railway, sea port, and airport construction; and/or h. construction of National Strategic Tourism Areas (KSPN) designated and prioritized by the central government in accordance with regulations regarding the acceleration of national strategic project implementation; and/or
i. halal industrial areas in accordance with regulations regarding halal product guarantees.
The calculation of Fund Disbursement to 1 (one) BUMN is based on the total Fund Disbursement received by that BUMN, for the purposes as mentioned in letters a to i and for other purposes. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated.
Article 44
Paragraph (1)
The requirements for applying the MRK Technique in BMPD calculation are in accordance with Financial Services Authority regulations regarding the calculation of risk-weighted assets for credit risk using the standardized approach for general Islamic banks. If the Bank does not recognize the existence of collateral, guarantees, financing guarantees, or UMKM financing insurance as the MRK Technique in calculating risk-weighted assets for credit risk using the standardized approach, the Bank does not need to apply the MRK Technique in BMPD calculation. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated.
Article 45
Clearly stated.
Article 46
Letter a
Central government in accordance with the Law on Regional Government.
Included in the central government are institutions given special authority in the context of managing central government investments formed based on the Law on Job Creation. Letter b Deposits in Bank Indonesia are Bank fund placements, both in rupiah and foreign currency, in Bank Indonesia, among others in the form of current accounts, Shariah term deposits (term deposit), and Shariah rupiah deposit facilities (deposit facility). Letter c Clearly stated.
Article 47
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
Unconditional means:

the benefits obtained by the fund-dispersing Bank from the guarantee do not substantially decrease even if losses occur due to factors beyond the Bank's control; and
do not contain procedural requirements, among others:
a) requiring a time limit for submitting default notifications; b) requiring the fund-dispersing Bank to prove good faith; and/or c) requiring the release of the guarantee to be done by mutual offset first with the fund-dispersing Bank's obligations to the guarantor. Letter b Clearly stated. Letter c Clearly stated. Letter d Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated.
Article 48
Paragraph (1)
Export-oriented Fund Disbursement is stipulated in an agreement between the Bank and financial institutions that meet the requirements.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Paragraph (6)
Clearly stated.
Article 49
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
The value of cash collateral in the form of gold is determined based on fair value.
Letter b
Included in the meaning of Fund Disbursement guaranteed by SBS issued by the Government of the Republic of Indonesia and/or Bank Indonesia includes claims on SBS purchased with a promise to resell (reverse repo). The value of collateral in the form of SBS issued by the Government of the Republic of Indonesia and/or Bank Indonesia is determined based on:
a. market value; or b. fair value, in the event that market value is not available.
Paragraph (3)
Clearly stated.
Article 50
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
With the guarantee from a Related Prime Bank, the total Fund Disbursement to Facility Recipient Customers receiving such guarantee is at most:
a. 100% (one hundred percent) of the Bank's Capital for Related Parties of the Bank; or b. 100% (one hundred percent) of the Core Capital (tier 1) of the Bank for Fund Disbursement to 1 (one) Facility Recipient Customer or 1 (one) group of Facility Recipient Customers other than Related Parties. Example 1:
Facility Recipient Customer "A" and Facility Recipient Customer "B" are Related Parties of PT Bank "X" that receive a guarantee in the form of a standby letter of credit (SBLC) issued by the parent company of PT Bank "X" in the form of a Prime Bank. The portion of Fund Disbursement from PT Bank "X" to Facility Recipient Customer "A" and Facility Recipient Customer "B" receiving the guarantee can be excluded from the BMPD calculation by at most 90% (ninety percent) of the Bank's Capital. This limit is for the total Fund Disbursement to Related Parties. The portion of Fund Disbursement to Facility Recipient Customer "A" and Facility Recipient Customer "B" that does not receive the guarantee is calculated as Fund Disbursement to Related Parties of the Bank, which in total is set at a maximum of 10% (ten percent) of the Bank's Capital. Example 2:
Facility Recipient Customer "C" and Facility Recipient Customer "D" are non-Related Parties (not a group of Facility Recipient Customers) of PT Bank "Y" that receive a guarantee in the form of a standby letter of credit (SBLC) issued by the parent company of PT Bank "Y" in the form of a Prime Bank. The total Fund Disbursement from PT Bank "Y" to each of Facility Recipient Customer "C" and Facility Recipient Customer "D" is at most 100% (one hundred percent) of the Core Capital (tier 1) of PT Bank "Y", taking into account the BMPD limit for the portion that does not receive the guarantee, which is at most 25% (twenty-five percent) of the Core Capital (tier 1) of PT Bank "Y" for each of Facility Recipient Customer "C" and Facility Recipient Customer "D".
Article 51
Clearly stated.
Article 52
Clearly stated.
Article 53
Paragraph (1)
Letter a
The term "decrease in Capital or Core Capital (tier 1) of the Bank" refers to a decrease that causes the Capital or Core Capital (tier 1) of the Bank as the denominator for BMPD calculation to become smaller. Letter b Exchange rate changes can cause an increase in the book value of Fund Disbursement in foreign currency, thereby causing an exceedance of BMPD. In accordance with financial accounting standards, adjustments for exchange rates are only made for financial instrument accounts. Thus, Foreign Currency Equity Investments are not adjusted with the exchange rate on the reporting date. Letter c Included in changes in fair value are changes in value in the recording of equity investments using the equity method that have been more than 1 (one)

year or SBS recording measured at fair value through profit or loss or through equity (mark to market).

Letter d
Business combination, whether in the form of takeover, merger, or other ownership structure changes, and/or changes in management structure, whether carried out by the fund-disbursing Bank or by the Facility Recipient Customer, may result in changes to the party designated as a Related Party or group of Facility Recipient Customers. Thus, as a result of business combination and/or changes in management structure, the Bank must re-evaluate the exposure amount held regarding the Facility Recipient Customer in relation to the limits established for Related Parties and/or groups of Facility Recipient Customers.

Letter e
Changes in regulations, including changes to parties categorized as Related Parties or groups of Facility Recipient Customers.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
The recorded value on the reporting date is in accordance with the applicable financial accounting standards for each instrument.

Article 54

Paragraph (1)
Sufficiently clear.

Paragraph (2)
The action plan submitted by the Bank represents the Bank's commitment to the Financial Services Authority (OJK).

Paragraph (3)
Letter a
Sufficiently clear.

Letter b
For exceeding the BMPD (Maximum Fund Disbursement Limit) caused by business combination, the deadline for submitting the action plan is at most 1 (one) month after the end of the reporting month from the date of approval of the combination by the competent authority.

Letter c
Sufficiently clear.

Article 55
Sufficiently clear.

Article 56
Sufficiently clear.

Article 57
Sufficiently clear.

Article 58

Paragraph (1)
Unstructured reports in accordance with the Financial Services Authority Regulation regarding reporting by commercial banks through the OJK reporting system.

Paragraph (2)
Sufficiently clear.

Article 59

Paragraph (1)
What is meant by "report on the implementation of the action plan" is a realization report informing the implementation of the action plan.

Paragraph (2)
Sufficiently clear.

Article 60

Paragraph (1)
Letter a
The Fund Disbursement Report presents data on Fund Disbursements for Related Parties and 20 (twenty) Facility Recipient Customers other than Related Parties with the largest exposure.

Letter b
The Large Fund Disbursement Report presents data on Fund Disbursements for Facility Recipient Customers other than Related Parties with exposure of 10% (ten percent) or more of the Bank's Core Capital (tier 1).

Letter c
The Large Fund Disbursement Exemption Report presents data on Fund Disbursements for Facility Recipient Customers other than Related Parties with exposure of 10% (ten percent) or more of the Bank's Core Capital (tier 1) that are exempted from the BMPD and Large Fund Disbursement calculation based on this Financial Services Authority Regulation.

Letter d
The BMPD Violation Report or BMPD Exceedance Report presents data on Facility Recipient Customers with exposure that violates or exceeds the BMPD.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Article 61

Paragraph (1)
Structured reports in accordance with the Financial Services Authority Regulation regarding reporting by commercial banks through the OJK reporting system.

Paragraph (2)
Sufficiently clear.

Article 62
Sufficiently clear.

Article 63
Sufficiently clear.

Article 64

Paragraph (1)
Sufficiently clear.

Paragraph (2)
The submission of corrections for the BMPD Violation or BMPD Exceedance Report and the quarterly publication report is conducted in accordance with the Financial Services Authority Regulation regarding reporting by commercial banks through the OJK reporting system.

Article 65

Paragraph (1)
The list of details of Related Parties must at least contain details of shareholders, management, business sector/industry, and control relationships among and between each Related Party. If possible, the preparation of the list of details of Related Parties includes a corporate tree diagram.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Sufficiently clear.

Article 66
Sufficiently clear.

Article 67
Sufficiently clear.

Article 68
Sufficiently clear.

Article 69
Sufficiently clear.

Article 70
Sufficiently clear.

Article 71
Sufficiently clear.

Article 72
Sufficiently clear.

Article 73
Sufficiently clear.

Article 74
Sufficiently clear.

Article 75
Sufficiently clear.

Article 76
Sufficiently clear.

SUPPLEMENT TO THE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6746

APPENDIX I
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 26 /POJK.03/2021
CONCERNING
MAXIMUM FUND DISBURSEMENT LIMIT AND LARGE FUND DISBURSEMENT FOR ISLAMIC COMMERCIAL BANKS GUIDELINES FOR CALCULATING THE MAXIMUM FUND DISBURSEMENT LIMIT AND LARGE FUND DISBURSEMENT FOR ISLAMIC COMMERCIAL BANKS

A. General
One of the potential causes of bank failure is Fund Disbursement not supported by the Bank's ability to manage the concentration of Fund Disbursement portfolios. Such concentration is caused not only by Financing exposure but also by excessive exposure to certain market factors or exposure arising from funding activities in cases where a Bank specifically relies on certain customer segments or funding sources. With the increasingly complex relationships between individuals and companies, and between companies, Banks must accurately identify and determine counterparties in relation to the measurement of concentration risk exposure. Regulations regarding Large Fund Disbursement aim to limit the maximum loss that a Bank may face in the event of sudden counterparty failure. These limits are set at levels considered not to endanger the Bank's solvency. However, global financial crisis experience has shown that Banks lack consistent measurement, grouping, and control methods for Bank Fund Disbursements, particularly Large Fund Disbursements (large exposure) to a single Facility Recipient Customer or a group of Facility Recipient Customers. In response to these conditions, regulations regarding Large Fund Disbursement continue to be refined in accordance with international standards while considering national interests (national best fit).

The Large Fund Disbursement framework is also one of the tools to reduce contagion risk among global systemically important banks, thereby supporting global financial system stability. The framework is also viewed as a useful method to strengthen supervision and regulation of the shadow banking system. Risks from Large Fund Disbursement are not the only type of concentration risk that can damage Bank resilience. Other types of concentration risk include sectoral and geographical exposure concentration, as well as dependence on concentrated funding sources. The Large Fund Disbursement regulatory framework focuses on losses arising from the default of a single individual or group of Facility Recipient Customers and does not account for other types of concentration risk.

B. RISK MANAGEMENT

In conducting Fund Disbursement, Banks are required to apply prudential principles and manage risks arising from such Fund Disbursement. The application of prudential principles and risk management is carried out, among other things, by establishing Fund Disbursement limits. The establishment of such Fund Disbursement limits must be based on an analysis of the impact of Fund Disbursement on the Bank's balance sheet structure and risk profile, considering the size, type, and duration of Fund Disbursement, as well as the impact of Fund Disbursement on the Bank's overall portfolio diversification policy and strategy. In addition to establishing limits on exposure to specific parties, for internal purposes, Banks may establish limits based on specific geographic areas and industrial sectors.
The analysis of the impact of Fund Disbursement on the balance sheet structure and risk profile is carried out, among other things, by measuring credit risk against a group of Fund Disbursements with similar characteristics, in terms of size, type, and/or duration. Credit risk is measured, among other things, based on historical data on default rates and credit rating migration over a certain period.
The analysis of such concentration risk is further elaborated into a maximum limit of Fund Disbursement that can be provided to Facility Recipient Customers. The maximum limit of Fund Disbursement is generally determined based on the maximum loss from Fund Disbursement that can be tolerated by the Bank's capital.
In addition to conducting analysis on the concentration of Fund Disbursement to Facility Recipient Customers and groups of Fund Disbursements as explained in point 2, Banks must also conduct analysis on the allocation established for each component of the Fund Disbursement portfolio. This is intended so that Banks can have an optimal portfolio composition from the Bank's overall balance sheet structure. In determining such allocation, Banks must consider the risk correlation between Fund Disbursement portfolio components and the volatility of each portfolio component.

C. RELATED PARTIES AND GROUPS OF FACILITY RECIPIENT CUSTOMERS
The determination of Related Parties and groups of Facility Recipient Customers can be analyzed based on ownership, management, and/or financial relationships.

Share Ownership
Control relationships can arise, among other things, due to share ownership with voting rights in a party, in the form of individuals or companies, towards a company. Determination of share ownership includes joint share ownership or through other parties, such as shares from Related Parties/members of other groups or shares from their families.

a. Related Parties with the Bank

Bank Controllers based on share ownership;
A party is considered to have a control relationship with the Bank if that party owns 10% (ten percent) or more of the Bank's shares.
If the party controlling the Bank is controlled by another party in the form of an individual or company, the controller of the controller is also designated as the Bank's controller. In determining the controller of the controller, there is no limit on the level of hierarchy, so it must be traced to the ultimate shareholder. If the Bank's controller is an individual, parties with vertical or horizontal family relationships with that individual are also considered controllers of the Bank. The control over the Bank as described above is illustrated by the ownership structure in Figure 1 and Figure 2.

Figure 1 Bank Controllers
Figure 1 is an example of a Bank directly owned by PT "A1". The controller of the controller in Figure 1 is PT "A" and the ultimate controller. Based on this, the ultimate controller, PT "A", and PT "A1" are designated as controllers of the Bank, thus becoming Related Parties with the Bank.

Ultimate Controller
≥ 10% shares
PT A
≥ 10% shares
PT A1
≥ 10% shares
Bank

Figure 2. Joint Bank Controllers
Figure 2 is an example of Bank control conducted through joint share ownership by PT "A1" and PT "A". Based on this, the ultimate controller, PT "A", PT "A1", and PT "A2" are designated as controllers of the Bank, thus becoming Related Parties with the Bank.

Legal entities in cases where the Bank acts as the controller
In determining the controller of the Bank's controller, there is no limit on the level of hierarchy for determining legal entities under the Bank's control. Tracing legal entities under the Bank's control is conducted to the final legal entity (ultimate subsidiary). This is illustrated in Figure 3.

Ultimate Controller
≥ 10% shares
PT A
≥ 10% shares
PT A1
≥ 10% shares
Bank
PT A2
7% shares
3% shares

Figure 3 Legal entities controlled by the Bank
In Figure 3, PT "B1" is a legal entity controlled by the Bank. PT "B" and the final legal entity (ultimate subsidiary) are also legal entities under the Bank's control through PT "B1" in a hierarchical manner. Based on this, the final legal entity (ultimate subsidiary), PT "B", and PT "B1" are Related Parties with the Bank.

Companies in cases where individuals or companies as referred to in point 1) act as controllers
In determining control parameters from the share ownership side, the percentage used is:
a) 10% (ten percent) or more and that ownership portion is the largest portion; or b) 25% (twenty-five percent) or more ownership of the company's shares.
This is illustrated in Figure 4.

Ultimate Controller
≥ 10% shares
PT A
≥ 10% shares
PT A1
≥ 10% shares
Bank
PT A2
7% shares
3% shares
PT B1
PT B
Ultimate Subsidiary
≥ 10% shares
≥ 10% shares
≥ 10% shares

Figure 4 Affiliated Companies
In Figure 4, it can be seen that the parties designated as controllers of the Bank are PT "A" and the ultimate controller. PT "A" owns 25% (twenty-five percent) or more of the shares of PT "C1" and PT "C2". Meanwhile, the ultimate controller owns 10% (ten percent) of the shares of PT "C", and that share ownership is the largest portion. Thus, PT "C", PT "C1", and PT "C2" are designated as Related Parties with the Bank.

Collective Investment Contracts (CIC)
Collective Investment Contract (CIC) is a contract between the investment manager and the custodian bank binding unit holders, where the investment manager is authorized to manage the collective investment portfolio and the custodian bank is authorized to execute collective custody in accordance with Financial Services Authority Regulations governing mutual funds in the form of collective investment contracts. In BMPD regulations, the CIC investment manager is designated as the party to determine control relationships. If the Bank and/or Related Parties with the Bank own 10% (ten percent) or more of the shares in a CIC investment manager, then fund investment in the CIC managed by that investment manager and/or Fund Disbursement to that investment manager is designated as Fund Disbursement to Related Parties. This is illustrated in Figure 5.

Figure 5 Collective Investment Contract (CIC)
In Figure 5, the Bank and Bank Related Parties (PT “C2” and PT “B1”) cumulatively own more than 10% (ten percent) of the shares in the investment manager managing the CIC portfolio. Based on this, fund investment in the CIC and/or Fund Disbursement to the CIC investment manager is designated as Fund Disbursement to Related Parties.

Ultimate Controller
≥ 10% shares
PT A
≥ 10% shares
PT A1
≥ 10% shares
Bank
PT A2
7% shares
3% shares
PT B1
PT B
Ultimate Subsidiary
≥ 10% shares
≥ 10% shares
≥ 10% shares
PT C1
PT C2
≥ 25% shares
≥ 25% shares
PT C
≥ 10% shares and is the largest portion
Investment Manager
Collective Investment Contract
4%
5%
5%

b. Groups of Facility Recipient Customers other than Related Parties From the share ownership side, to determine control relationships between 1 (one) Facility Recipient Customer and other Facility Recipient Customers, the following applies:

Facility Recipient Customers, directly or indirectly, own 10% (ten percent) or more of the shares of other Facility Recipient Customers, and that ownership portion is the largest portion; or
Facility Recipient Customers, directly or indirectly, own 25% (twenty-five percent) or more of the shares of other Facility Recipient Customers.
If 1 (one) Facility Recipient Customer owns shares in other Facility Recipient Customers with the percentages as explained in point 1) or point 2), both Facility Recipient Customers are classified as 1 (one) group of Facility Recipient Customers. The classification of groups of Facility Recipient Customers also applies in cases where 1 (one) party controls several Facility Recipient Customers, namely when that party owns shares in several Facility Recipient Customers with the percentages as explained in point 1) and/or point 2). This is illustrated in Figure 6.

Figure 6 Facility Recipient Customers under one control
In Figure 6, the Bank provides Financing to Customer “1”, Customer “2”, and Customer “3”. It can be seen that Customer “1” and Customer “2” are controlled by 1 (one) party, namely the Controller. The Controller owns 25% (twenty-five percent) or more in Customer “1” and Customer “2”, so Customer “1” and Customer “2” are classified into 1 (one) group of Facility Recipient Customers. Customer “3” is controlled by the same controller as Customer “1” and Customer “2”. Control over Customer “3” by the Controller is conducted hierarchically through Customer “1” and Customer “2” with share ownership of 15% (fifteen percent), and this ownership portion is the largest portion. Thus, Customer “1”, Customer “2”, and Customer “3” are classified into 1 (one) group of Facility Recipient Customers, and the BMPD for the entire group of Facility Recipient Customers must not exceed 25% (twenty-five percent) of the Bank's Core Capital (tier 1).

Ultimate Controller
Customer 2 Customer 1
PT A1
Customer 3
≥ 25% shares ≥ 25% shares
10% shares
≥ 25% shares
5% shares
Bank
Financing 1
Financing 3
Financing 2
Other shareholders with ownership portions each < 15% shares 85% shares

Management
Control relationships can arise due to management relationships as referred to in Article 10 and Article 18 of this Financial Services Authority Regulation.
Financial
Control relationships can be caused by financial relationships analyzed based on several criteria as follows:
a. Financial interdependence
Several factors used to determine the existence of financial interdependence between 2 (two) parties are as follows.

Transaction value between the two parties. If there are material transactions between 1 (one) party and another party that directly affect the financial health of that party, those parties are designated as having financial interdependence. Examples of material transactions include cases where 50% (fifty percent) or more of the gross annual income or gross annual expenses of one party come from transactions with another party.
Transaction relationships between parties that can cause financial interdependence as follows:
a) sales dependence on specific parties; b) production process dependence where the production or production results of one party significantly depend on another party; and/or Examples of letter a) and letter b):
PT A involves partners PT X, PT Y, and PT Z in conducting its business activities, where each partnership meets the criteria for sales dependence and/or production process dependence. The Bank provides Financing to PT A. In addition, the Bank also provides Financing to PT X, PT Y, and PT Z to fulfill sales or production processes related to PT A.

Figure 7 Groups of Facility Recipient Customers due to Sales Dependence and/or Production Process Dependence
As long as there are no other control relationships, PT A and each partner are designated as groups of Facility Recipient Customers with BMPD calculations for each as follows:
i) Group 1 = BMPD of 25% of the bank's core capital ii) Group 2 = BMPD of 25% of the bank's core capital iii) Group 3 = BMPD of 25% of the bank's core capital The BMPD illustration for each group can be seen in Figure 7. However, there are exceptions if among PT X, PT Y, and/or PT Z there are other connections, such as ownership, financial, etc., then the BMPD calculation must be combined. For example, if PT X and PT Z have ownership connections, then the fund disbursement facilities provided to PT X and PT Z are combined with the fund disbursement facilities provided to PT A and subject to a BMPD of 25% of the core capital. c) dependence on loans or funding sources from specific parties so that in the event of default from the funding source, there are no alternative funding sources.

Example:
The funding source to pay the debt of one party to another party is the same for each party, and that party has no other funding sources to repay the debt.
Analysis of such transaction relationships focuses only on the transactional relationships between one party directly with another party.
3) Cash flows from one party will be significantly disrupted due to cash flow disruptions from another party, thereby significantly affecting each party's ability to pay obligations to the Bank. In addition, if one party defaults, this may correlate with the default of another party.

b. Risk transfer through guarantees
Another factor used to determine the existence of financial interdependence between 2 (two) parties is the transfer of credit risk through guarantees, where the guarantor assumes part or all of the financial risk of the guaranteed party. The forms of guarantees provided in determining financial relationships can consist of various forms such as: personal guarantee, corporate guarantee, and/or aval. The financial relationships as explained above apply to Related Parties with the Bank or not. In determining Related Parties, if among the parties with financial relationships there are Related Parties with the Bank, then all parties with such financial relationships are designated as Related Parties with the Bank. If the financial relationship criteria do not automatically indicate financial interdependence causing 2 (two) or more parties to become a group of Facility Recipient Customers, the Bank may not classify a Facility Recipient Customer into a group of Facility Recipient Customers as long as the Bank can demonstrate to the Financial Services Authority that a Facility Recipient Customer that is economically closely related to another Facility Recipient Customer...

Other facilities may address financial difficulties or defaults experienced by Facility Recipients, for example, by finding business partners or alternative funding sources within a reasonable time period.

D. FUND DISBURSEMENT CALCULATION

BMPD Calculation for Groups of Facility Recipients

a. Example of BMPD calculation for a group of Facility Recipients is as follows:
Bank “XYZ” provides Financing facilities to 3 (three) customers, namely:

Customer Name	Recorded Value
“A”	Rp27,000,000,000,-
“B”	Rp3,000,000,000,-
“C”	Rp3,000,000,000,-

Each customer has a control relationship, so they are classified into 1 (one) group of Facility Recipients, namely the “ABC” Facility Recipient Group. Core Capital (Tier 1) of Bank “XYZ” is Rp100,000,000,000,- (one hundred billion rupiah).

This Financial Services Authority Regulation stipulates that Fund Disbursement by the Bank to customer “A”, customer “B”, customer “C”, and the “ABC” Facility Recipient Group is set at a maximum of 25% (twenty-five percent) of Core Capital (Tier 1) of the Bank, namely Rp25,000,000,000,- (twenty-five billion rupiah).

Based on this, there are 2 (two) BMPD Violations from the Fund Disbursement conducted by Bank “XYZ” as follows:

Type of Violation	Percentage of Violation
BMPD Violation for Financing to customer “A”	{(Rp27,000,000,000,- ÷ Rp100,000,000,000,-) x 100%} – 25% = 2%
BMPD Violation for Financing to the “ABC” Facility Recipient Group	[{(Rp27,000,000,000,- + Rp3,000,000,000,- + Rp3,000,000,000,-) ÷ Rp100,000,000,000,-} x 100%] – 25% = 8%

b. Example of grouping Facility Recipients into several groups of Facility Recipients

Bank “FSI” has customers, namely the “A” Facility Recipient Group consisting of “B”, “C”, “D”, “E”, “F”, and “G”, and the “W” Facility Recipient Group consisting of “X”, “Y”, “Z”, and “G”. The ownership composition of each “A” Facility Recipient Group and “W” Facility Recipient Group can be seen in Figure 8.

Bank “FSI” then provides financing to “G”, which is owned by “E” by 26% (twenty-six percent) and “Y” by 64% (sixty-four percent). “E” is a member of the “A” Facility Recipient Group, while “Y” is a member of the “W” Facility Recipient Group.

In the BMPD calculation, Fund Disbursement provided by Bank “FSI” to “G” is also calculated as Fund Disbursement to the “A” Facility Recipient Group and the “W” Facility Recipient Group.

Core Capital (Tier 1) of Bank “FSI” is Rp100,000,000,000,- (one hundred billion rupiah). The BMPD calculation for each “A” Facility Recipient Group and “W” Facility Recipient Group is 25% (twenty-five percent) of Core Capital (Tier 1) of Bank “FSI”, namely Rp25,000,000,000,- (twenty-five billion rupiah).

Fund Disbursement to the “A” Facility Recipient Group is Rp20,000,000,000,- (twenty billion rupiah) and to the “W” Facility Recipient Group is Rp15,000,000,000,- (fifteen billion rupiah).

Fund Disbursement permitted to “G” must consider exposure to both groups of Facility Recipients as follows:

Fund Disbursement permitted to “G” must consider exposure to both groups of Facility Recipients as follows:
Rp20,000,000,000,- + x ≤ Rp25,000,000,000,-

Fund Disbursement to the “W” Facility Recipient Group plus Fund Disbursement to “G” must be less than or equal to 25% of Core Capital (Tier 1) of the Bank.
Rp15,000,000,000,- + x ≤ Rp25,000,000,000,-

Note:
“x” is the maximum amount of Fund Disbursement that can be provided to “G” so that if “x” is added to the exposure of each “A” Facility Recipient Group and “W” Facility Recipient Group, it does not exceed 25% (twenty-five percent) of Core Capital (Tier 1) of Bank “FSI”.

Based on this, the maximum Fund Disbursement that can be provided to “G” is Rp5,000,000,000,- (five billion rupiah), and “G” is designated as a member of each “A” Facility Recipient Group and “W” Facility Recipient Group.

Thus, the calculation of exposure for Facility Recipient “G” in determining the amount of exposure from each “A” Facility Recipient Group and “W” Facility Recipient Group that has control over Facility Recipients is not calculated proportionally, except in cases where the control relationship is caused solely by financial relationships caused by guarantees.

Figure 8 Grouping of Facility Recipients into several Groups of Facility Recipients

A	B	E
C	D	F
G	47%	39%
53%	100%	99%
26%	W	Y
C	F	50%
64%	85%	55%

Fund Disbursement

Fund Disbursement considered in the BMPD and Large Fund Disbursement calculation is all Fund Disbursement in the banking book and trading book positions. The trading book position for financial instruments such as bonds and equity instruments owned by Subsidiary Companies is limited by the BMPD limit, but concentration exposure to specific commodities or currencies is not limited by the BMPD limit.

Exposure to Fund Disbursement that receives a risk weight of 1250% (one thousand two hundred fifty percent) in the risk-weighted asset calculation according to the standard approach for credit risk as per the Financial Services Authority Regulation regarding guidelines for calculating risk-weighted assets for credit risk using the standard approach for Islamic general banks is also calculated in the BMPD calculation.

Explanation regarding several types of Fund Disbursement is as follows:

a. Sharia Hedging Transactions

BMPD for Sharia Hedging Transactions for banking book positions and trading book positions is calculated based on the net amount calculation of Sharia Hedging Transactions as per the Financial Services Authority Regulation regarding guidelines for calculating net amounts of Sharia hedging transactions in risk-weighted asset calculations for credit risk using the standard approach for Islamic general banks.

As an addition to the BMPD calculation for Sharia Hedging Transactions, Sharia Hedging Transactions in the trading book position are calculated based on the transaction leg position in the trading book position considered in BMPD, namely transaction leg positions that are coverage within Fund Disbursement in the form of long positions.

b. Sharia Securities

SBS linked/guaranteed with underlying assets

SBS linked/guaranteed with underlying assets is a form of SBS where the price/value of the SBS is determined, among others, based on the price/value of a specific instrument designated as the underlying instrument, such as Sharia mutual funds or Sharia Asset-Backed Securities (EBA).

In the BMPD calculation for such SBS, Banks may use the look-through approach (LTA) or not use the LTA method as per this Financial Services Authority Regulation.

The LTA method is BMPD for each reference entity calculated proportionally based on the proportion of underlying assets/instruments of each reference entity to the SBS as a whole.

Regulations for SBS with the LTA method are as follows:

a) SBS in a structure where investors have equal ranking (pari passu)

Example:
Investment Manager PT “Prima” issues an open-end Sharia mutual fund worth Rp1,000,000,000,- (one billion rupiah). The Bank buys 2% (two percent) of the SBS in the form of Sharia mutual fund with a purchase price of Rp20,000,000,- (twenty million rupiah). The underlying assets of the Sharia mutual fund certificates consist of PT “A” sukuk at 60% (sixty percent) and PT “B” sukuk at 40% (forty percent) of the value of the Sharia mutual fund assets.

Based on this, BMPD for the purchase of Sharia mutual fund SBS is designated to PT “A” and PT “B”, each calculated proportionally to the purchase price of the Sharia mutual fund, namely:
a. Fund Disbursement to PT “A” = Rp20,000,000,- x 60% = Rp12,000,000,-; and b. Fund Disbursement to PT “B” = Rp20,000,000,- x 40% = Rp 8,000,000,-.

b) SBS in a structure where investors have different seniority rankings

Example:
Asset securitization activity where the issuance of SBS by an EBA Sharia issuer is based on the transfer of underlying financial assets from the originator, where cash flows from the underlying asset pool are used to meet obligations for at least 2 (two) risk positions with different (tranche) classes and reflect different levels of credit risk.

The BMPD calculation for Fund Disbursement in the form of purchasing SBS in this structure is measured for each class (tranche) in the structure with the assumption of pro-rata distribution of losses among investors in a class (tranche).

The calculation of the value of Fund Disbursement for underlying assets is as follows:
i) determining the lower value between the value of the class (tranche) in which the Bank invests and the nominal value of each underlying asset; and ii) determining the pro-rata portion of the Bank's investment in that class (tranche) to the value determined in letter i).

Additional risk identification for the purchase of SBS linked/guaranteed with underlying assets

In the event the Bank purchases SBS linked/guaranteed with underlying assets, the Bank identifies third parties that cause additional risk factors in the SBS and are not additional risk factors in the underlying assets. Such third parties can be risk factors for more than one SBS purchased by the Bank. Examples of third parties are originators, investment managers, liquidity facility providers, and supporting financing providers.

The Bank may consider several third parties to be sources of potential additional risk.

In the event the Bank calculates BMPD for SBS linked/guaranteed with underlying assets without using the LTA method, the Bank identifies structural risks inherent in the aforementioned SBS. This is independent of the overall additional risk assessment results.

Regarding additional risk identification, the Bank performs the following actions:
a) The Bank classifies all investments in SBS linked/guaranteed with underlying assets into one group of Facility Recipients with the third party. b) The Bank may add other Fund Disbursement (e.g., Financing) to third parties other than Fund Disbursement in the form of purchasing SBS in the BMPD calculation. This is done based on considerations of the specific features of the SBS linked/guaranteed with underlying assets and the role of the third party in each transaction.

Example:
For parties taking over credit risk (protection sellers), the source of additional risk for Banks investing in SBS linked/guaranteed with underlying assets is the default of the party taking over credit risk (protection seller). The Bank must sum the investment in such SBS with the exposure directly owned by the Bank to the party taking over credit risk (protection seller) because both exposures can cause losses in the event the party taking over credit risk (protection seller) defaults. In the event the Bank ignores the portion of Fund Disbursement receiving protection, this can lead to increased concentration risk exposure to the party taking over credit risk (protection seller).

c. Financing

In the event Financing is provided for the takeover of claims in factoring activities or the purchase of Financing from other parties, the BMPD calculation is based on:

without recourse requirements, where the customer is the party obligated to repay the transferred claim; or
with recourse requirements, where the customer is the party selling or transferring the claim/Financing.

This is exemplified in Figure 9.

Figure 9. Purchase of Claims/Financing

Party obligated to pay claim/Financing	Seller of Claim/Financing	Bank (buyer)
Without Recourse	Financing	BMPD
Sharia Securities	Debt
Party obligated to pay claim/Financing	Seller of Claim/Financing	Bank (buyer)
With Recourse	Financing	Financing (Receivables) Debt
BMPD

d. Equity Investment

Fund Disbursement in the form of Equity Investment is designated as exposure to the company where the Bank makes the investment.

The amount of Fund Disbursement in the form of equity investment is equal to the recorded value of all costs incurred in the context of the investment. For investments in the form of convertible sukuk with equity options, the amount considered is the value of the shares or investment that the Bank will obtain if the convertible sukuk is converted into shares.

For certain types of transactions resulting in the Bank owning or having shares, such as equity option transactions, the Fund Disbursement considered in BMPD is equal to the total value of shares that will be owned if the option is exercised.

Party obligated to pay claim/Financing	Seller of Claim/Financing	Bank (buyer)
Without Recourse	Financing	BMPD
Sharia Securities	Debt
Party obligated to pay claim/Financing	Seller of Claim/Financing	Bank (buyer)
With Recourse	Financing	Financing (Receivables) Debt
BMPD

E. FUND DISBURSEMENT TO STATE-OWNED ENTERPRISES (BUMN)

Example:
BUMN “A” is a State-Owned Enterprise operating in the toll road construction sector.
BUMN “A” has 2 (two) subsidiaries, namely PT “AP1” and PT “AP2”. The BMPD calculation calculates Fund Disbursement directly to the BUMN and to the BUMN group.

Bank “X” provides Financing to BUMN “A”, PT “AP1”, and PT “AP2” (other than Related Parties of Bank “X”) as follows:

Customer	Recorded Financing Value	Notes
BUMN “A”	Rp10,000,000,000,-	Financing obtained is for the construction of BUMN “A” office complex
PT “AP1”	Rp6,000,000,000,-
PT “AP2”	Rp4,000,000,000,-
Total Fund Disbursement	Rp20,000,000,000,-

Note:

Bank “X” Capital = Rp110,000,000,000,-
Core Capital (Tier 1) of Bank “X” = Rp100,000,000,000,-
BMPD of Bank “X” to the BUMN business group “A” = 25% of Core Capital (Tier 1) of Bank “X” = Rp25,000,000,000,-
Thus, Bank “X” can still provide Fund Disbursement to the BUMN business group “A” amounting to Rp25,000,000,000,- - Rp20,000,000,000,- = Rp5,000,000,000,-

In the event BUMN “A” applies for new Financing for toll road construction, the new Fund Disbursement that can be provided to BUMN “A” must be calculated cumulatively, based on the exposure already owned by the Bank to the BUMN business group “A” against the 30% (thirty percent) limit of Bank “X” Capital as follows:

BMPD to BUMN for construction (A)	30% x Rp110,000,000,000,- = Rp33,000,000,000,-
Total Fund Disbursement already provided (B)	Rp20,000,000,000.-
New Fund Disbursement that can be provided for toll road construction (A – B)	Rp13,000,000,000,-

This BMPD is Rp8,000,000,000,- (eight billion rupiah) larger than if the new Financing were not for construction purposes as stipulated in this Financial Services Authority Regulation.

F. SPECIFIC BMPD TREATMENT

Example:
In calculating BMPD for Fund Disbursement guaranteed by Prime Bank, which is a Related Party of the Bank, Fund Disbursement exceeding the fixed exemption amount is calculated in the BMPD calculation.

Information regarding Fund Disbursement by Bank “X” to Related Parties is as follows:

Item	Value
Bank “X” Capital	Rp150,000,000,000,-
BMPD for Related Parties = 10% of Bank “X” Capital	Rp15,000,000,000,-
Fund Disbursement by Bank “X”:
1. Purchase of SBS PT “B”	Rp5,000,000,000,-
2. Long-term placement at Bank “C”	Rp80,000,000,000,-
3. Purchase of Securities PT “D”	Rp20,000,000,000,-
4. Financing to PT “A”	Rp100,000,000,000,-
Total Fund Disbursement	Rp205,000,000,000,-
SBLC received by Bank “X” from Bank “Z” (Prime Bank) for guarantee of PT “B”	Rp90,000,000,000,-
SBLC received by Bank “X” from Bank “Z” (Prime Bank) for guarantee of Bank “C”	Rp90,000,000,000,-
PT “A”, PT “B”, Bank “C”, Prime Bank, and PT “D” are Related Parties with Bank “X”

Calculation:

The portion of Fund Disbursement receiving guarantees in the form of SBLC from Prime Bank, which is a Related Party of the Bank, can be exempted from the BMPD calculation, namely at most 90% (ninety percent) of Bank “X” Capital for Fund Disbursement to Related Parties.
Exemption limit = 90% x Rp 150,000,000,000,- = Rp135,000,000,000,- This limit applies to the total Fund Disbursement to Related Parties.

Excess SBLC = Rp90,000,000,000,- + Rp90,000,000,000,- - Rp135,000,000,000,- = Rp45,000,000,000,- This excess SBLC of Rp45,000,000,000,- (forty-five billion rupiah) cannot be used to guarantee Fund Disbursement to PT “A” and PT “D”, including excess BMPD group exposure.

BMPD Violation amount:

Item	Value
Total Fund Disbursement	Rp205,000,000,000,-
SBLC considered as BMPD exemption	(Rp135,000,000,000,-)
Total Fund Disbursement subject to BMPD calculation	Rp70,000,000,000,-
BMPD for Related Parties	(Rp15,000,000,000,-)
BMPD Violation for Related Parties	Rp55,000,000,000,-

Designated in Jakarta on 17 December 2021

CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,

signed
WIMBOH SANTOSO

APPENDIX II
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 26 /POJK.03/2021
REGARDING
MAXIMUM FUND DISBURSEMENT AND LARGE FUND DISBURSEMENT FOR ISLAMIC GENERAL BANKS

Part A
GUIDELINES FOR PREPARING REPORTS ON MAXIMUM FUND DISBURSEMENT AND LARGE FUND DISBURSEMENT FOR ISLAMIC GENERAL BANKS

FUND DISBURSEMENT REPORT INDIVIDUALLY

Bank Name : PT Bank… (individual)
Report Position: Month/Year
(in Millions of Rupiah)

Facility Recipient Customer	Fund Disbursement on Report Date (before MRK Technique)
Customer Number	Name	Individual/Group Member / Total Group	Group Name	Group Number	Relationship with Bank	Status of Relationship with Bank	Type of Fund Disbursement	Maturity Period	Amount of Fund Disbursement	Exchange Rate
I	II	III	IV	V	VI	VII	VIII	IX.1	IX.2	X	XI	XII
								Start Date	Maturity Date	Rupiah	Foreign Currency

Capital	Core Capital	Collateral/Guarantee Provided (MRK Technique)
Collateral/Guarantee Type	Quality	Notes	Collateral/Guarantee	Guaranteed Portion	Issuer of Collateral/Guarantee	Rating Agency	Rating of Guarantor	Rating Date	Maturity Period
XIII	XIV	XV	XVI	XVII	XVIII	XIX	XX	XXI.1	XXI.2	XXII	XXIII

Guidelines for Filling Out Individual Fund Disbursement Reports

In this table, the following matters are reported:

All Fund Disbursement to Related Parties.
Fund Disbursement to 20 (twenty) Facility Recipients other than Related Parties receiving the largest amount of Fund Disbursement, regardless of the percentage of Fund Disbursement relative to Core Capital (Tier 1) of the Bank.

COLUMN

I. Customer Number
This column is filled with the number of all Facility Recipients, Related Parties or non-Related Parties, being individuals or groups of Facility Recipients.

II. Name
This column is filled with the name of all Facility Recipients, Related Parties or non-Related Parties, being individuals or groups of Facility Recipients. In the event the Bank fills in the total Related Parties/group of Facility Recipients/group of BUMN, the Name column is filled with “Total”, followed on the next row by the names of each member of the group of Facility Recipients. Customers who are “unknown clients” as referred to in this Financial Services Authority Regulation are also written by the Bank as “unknown client”.

III. Individual/Group Member of Facility Recipient/Total Group of Facility Recipients
This column is filled with the code:

No. Individual/Group Member/Total Group	Code
1. Individual	1
2. Group Member	2
3. Total Group	3
4. Total Related Parties	4
5. BUMN Group Member	5
6. Total BUMN Group	6

In the event there is 1 (one) Group Member of Facility Recipient/BUMN Group Member who is a member of more than 1 (one) group of Facility Recipients/BUMN group, the Group Member of Facility Recipient/BUMN Group Member is reported in the details of each Total Group of Facility Recipients/Total Group of BUMN.

The Bank reports the total Related Parties and details all Related Parties receiving Fund Disbursement from the Bank on subsequent rows.

In the event there is Fund Disbursement to the Government of the Republic of Indonesia and Bank Indonesia, the Bank fills this column with the individual code.

IV. Name of Group of Facility Recipients
This column is filled with the name of the group of Facility Recipients.

V. Group Number
This column is filled with the number of the group of Facility Recipients.

VI. Relationship with Bank
This column is filled with the code:

No. Relationship with Bank	Code
1. Related Party	1
2. Non-Related Party	2

VII. Status of Relationship with Bank
This column is filled with the code:

No. Status of Relationship with Bank	Code
1. Related Party
a. Controllers and/or family of bank controllers
b. Legal entities in the event the Bank acts as controller
c. Companies in the event individuals or companies as referred to in letter a act as controllers
d. Bank management, family of bank management, and Executive Officers of the Bank
e. Management at companies as referred to in letter a, letter b, and/or letter c
f. Companies whose management are members of the Board of Commissioners at the Bank
g. Companies where 50% or more of their management are management at companies as referred to in letter a, letter b, and letter c
h. Companies where 50% or more of their management are management at companies as referred to in letter a, letter b, and letter c
i. Companies whose management from parties as referred to in letter a, letter b, and/or letter c act as controllers
j. Financial relationship	0310
k. KIK where the Bank and/or parties as referred to in letter a to letter i own 10% or more of the shares in the KIC investment manager
l. Guarantees	0330
m. Others	0410
2. Non-Related Party
a. Facility Recipient Customers Individual	9900
b. Group of Facility Recipients
1) Controllers of other Facility Recipients
2) Joint Ownership	9920
3) Financial relationships other than Guarantees
4) Guarantees	9940
5) Management/Management Relationships	9950

Explanation of the status of the relationship with the Bank as referred to in this Financial Services Authority Regulation and Appendix I, which is an integral part of this Financial Services Authority Regulation.

VIII. Type of Fund Disbursement
This column is filled with the type of Fund Disbursement provided by the Bank to Facility Recipients as regulated in this appendix. This column is filled with the code:

| | |

No. Fund Disbursement Type Code

Deposits 10
Sharia Securities 20
Receivables from Securities Purchased with Agreement to Resell (Reverse Repo)
Murabahah Receivables (net) 30
Salam Receivables 31
Istishna Receivables (net) 32
Musyarakah Financing 33
Mudharabah Financing 34
Ijarah 35
Qardh 37
Acceptance Receivables 39
Equity Participation 40
Temporary Equity Participation 45
Sharia Hedging Transactions 60
Other Fund Disbursement Forms 62
Guarantees 65
Letter of Credit (L/C) 70
Standby Letter of Credit (SBLC) 80
Other Fund Disbursement Forms in
Administrative Account Transactions
For Customers Receiving Facilities who obtain Fund Disbursement from the Bank in more than one type, this column is filled with the type of Fund Disbursement that has the largest Fund Disbursement amount. In the event that there is a collateral issuer/guarantee issuer/guarantor whose exposure is calculated due to the application of MRK Technique, this column is filled with code 62, which is Other Fund Disbursement Forms.

IX. Duration

Start
This column is filled with the date, month, and year of the start of the Fund Disbursement given.
Maturity
This column is filled with the date, month, and year of the maturity of the Fund Disbursement.

X. Amount of Rupiah Fund Disbursement
This column is filled with the amount of Fund Disbursement received by the Customer Receiving Facilities in Rupiah currency.

In the event that there is more than 1 (one) type of Fund Disbursement for 1 (one) Customer Receiving Facilities, the Bank sums up all values of Fund Disbursement for each type of Fund Disbursement by calculation as regulated in this Financial Services Authority Regulation. In the event that the Bank fills in information regarding the total Related Parties/customer groups of Customers Receiving Facilities/State-Owned Enterprises (BUMN) groups, this column is filled with the sum of all amounts of Rupiah Fund Disbursement from all Related Parties/members of the Customer Receiving Facilities group/members of the BUMN group.

XI. Amount of Foreign Currency Fund Disbursement
This column is filled with the amount of Fund Disbursement received by the Customer Receiving Facilities in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Customer Receiving Facilities.

In the event that there is more than 1 (one) type of Fund Disbursement for 1 (one) Customer Receiving Facilities, the Bank sums up all values of Fund Disbursement for each type of Fund Disbursement by calculation as regulated in this Financial Services Authority Regulation. In the event that the Bank fills in information regarding the total Related Parties/customer groups of Customers Receiving Facilities/State-Owned Enterprises (BUMN) groups, this column is filled with the sum of all amounts of foreign currency Fund Disbursement from all Related Parties/members of the Customer Receiving Facilities group/members of the BUMN group.

XII. Exchange Rate
Filled with Bank Indonesia's closing exchange rate at the end of the reporting month, using the middle rate.

XIII. Capital
This column is filled with the Bank's total Capital at the time of the reporting month, both individually and consolidated.

XIV. Core Capital (tier 1)
This column is filled with the Bank's total Capital at the time of the reporting month, both individually and consolidated.

XV. Form of Guarantee/Collateral
This column is filled with guarantees/collateral that can be counted as reducing factors in the calculation of BMPD and Large Fund Disbursement as referred to in this Financial Services Authority Regulation, namely with the code:

No. Form of Guarantee/Collateral Code

Current Account 10
Savings 15
Deposits 20
Guarantee Deposits 37
Gold 40
SBI/SBIS 45
SBN/SBNS 60
SBLC 65
Central Government Guarantees 68
Others 70
None 99

In the event that one Fund Disbursement uses more than 1 (one) guarantee/collateral, this column is filled with the form of guarantee/collateral that has the largest guaranteed portion.

XVI. Guaranteed Portion
This column is filled with the portion of the Fund Disbursement that receives protection from the MRK Technique instrument as referred to in this Financial Services Authority Regulation.

In the event that one Fund Disbursement uses more than 1 (one) guarantee/collateral, the Bank sums up the value of each guarantee/collateral form as the guaranteed portion with the largest value equal to the amount of Fund Disbursement.

In the event that the Bank fills in information regarding the total Related Parties/customer groups of Customers Receiving Facilities/State-Owned Enterprises (BUMN) groups, this column is filled with the sum of all guaranteed portions from all Related Parties/members of the Customer Receiving Facilities group/members of the BUMN group.

XVII. Issuer of Guarantee/Collateral
This column is filled with the issuer of the guarantee/collateral such as the Government of the Republic of Indonesia, Banks, or multilateral institutions according to group codes for third parties and Bank codes as referred to in regulations regarding integrated general bank reports.

XVIII. Guarantor Rating
This column is filled with the rating of the guarantee issuer. This column is filled with the number 00 for guarantees/collateral issued by the Government of the Republic of Indonesia or Bank Indonesia.

XIX. Rating Agency
This column is filled with the name of the rating agency recognized by the Financial Services Authority as referred to in the Financial Services Authority Circular regarding recognized rating agencies and ratings. This column is filled with the code:

No. Rating Agency Code

Moody’s Investor Service MIS
Standard and Poor’s SNP
Fitch Rating Internasional FIN
Pemeringkat Efek Indonesia (Pefindo) PEF
Fitch Rating Indonesia FID
None 00

XX. Rating Date
This column is filled with the date, month, and year when the rating was given.

XXI. Duration

Start
This column is filled with the date, month, and year of the start of the guarantee/collateral given.
Maturity
This column is filled with the date, month, and year of the maturity of the guarantee/collateral.

XXII. Quality
Quality of Fund Disbursement is the quality of the Fund Disbursement given by the Bank that is assessed according to regulations regarding the assessment of bank asset quality with quality classification as follows:

No. Quality Code

Smooth 1
Special Attention 2
Less Smooth 3
Doubtful 4
Bad 5

XXIII. Notes

Part B
GUIDELINES FOR PREPARING THE REPORT ON MAXIMUM FUND DISBURSEMENT AND LARGE FUND DISBURSEMENT FOR ISLAMIC GENERAL BANKS CONSOLIDATED FUND DISBURSEMENT REPORT Bank Name: PT Bank… (consolidated) Report Position: Month/Year (in Millions of Rupiah)

Customer Receiving Facilities Bank
Customer
Number Name
Individual/
Group Member /
Total Group
Group Name
Group Number
Relationship with
Bank
Status of
Relationship with Bank
Type of
Fund Disbursement
Duration Amount of Fund Disbursement
Exchange Rate
Start Maturity Rupiah Foreign Currency
I II III IV V VI VII VIII IX.1 IX.2 X XI XII
Subsidiary
Company
Consolidation
Consolidation
Quality Notes Type of
Fund Disbursement
Duration
Amount of Fund Disbursement after MRK Technique Exchange Rate Total Fund Disbursement after MRK Technique Start Maturity Rupiah Foreign Currency XIII XIV.1 XIV.2 XV XVI XVII XVIII XIX XX XXI XXII

Guidelines for Filling the Consolidated Fund Disbursement Report In this table, the following are reported:

All Fund Disbursements to Related Parties.
Fund Disbursements to 20 (twenty) Customers Receiving Facilities
other than Related Parties who obtain the largest amount of Fund Disbursement without regard to the percentage of Fund Disbursement amount against the Bank's Core Capital (tier 1).

COLUMN
I. Customer Number
This column is filled with the number of all Customer Receiving Facilities, Related Parties or non-Related Parties, being individuals or groups of Customers Receiving Facilities.

II. Name
This column is filled with the name of all Customer Receiving Facilities, Related Parties or non-Related Parties, being individuals or groups of Customers Receiving Facilities. In the event that the Bank fills in the total Related Parties/customer groups of Customers Receiving Facilities/groups of BUMN, the column Name is filled with “Total”, followed on the next row by each name of the members of the Customer Receiving Facilities group. Customers that are “unknown clients” as referred to in this Financial Services Authority Regulation are also written by the Bank as “unknown client”.

III. Individual/Group Member of Customer Receiving Facilities/Total Group of Customer Receiving Facilities
This column is filled with the code:

No. Individual/Group Member/Total Group Code

Individual 1
Group Member 2
Total Group 3
Total Related Parties 4
BUMN Group Member 5
Total BUMN Group 6

next. In the event that there is 1 (one) Member of the Customer Receiving Facilities Group/BUMN Group Member that is a member of more than 1 (one) Customer Receiving Facilities group/BUMN group, the Member of the Customer Receiving Facilities Group/BUMN Group Member is reported in the details of each Total Customer Receiving Facilities Group/Total BUMN Group. The Bank reports the total Related Parties and details all Related Parties that are given Fund Disbursement by the Bank on the following rows. In the event that there is Fund Disbursement to the Government of the Republic of Indonesia and Bank Indonesia, the Bank fills this column with the code individual.

IV. Name of Customer Receiving Facilities Group
This column is filled with the name of the Customer Receiving Facilities group.

V. Group Number
This column is filled with the number of the Customer Receiving Facilities group.

VI. Relationship Status with Bank
This column is filled with the code:

No. Relationship Status Code

Related Party 1
Non-Related Party 2

VII. Status of Relationship with Bank
This column is filled with the code:

No. Status of Relationship with Bank Code

Related Party
a. Controller and/or family of the controller of the Bank b. Legal entity in the event that the Bank acts as the controller
c. Company in the event that an individual or
company as referred to in letter a acts as the controller

d. Bank Management, family of Bank Management, and Executive Officers of the Bank e. Management at companies as referred to in letter a, letter b, and/or letter c f. Companies whose management are members of the Board of Commissioners at the Bank g. Companies where 50% or more of their management are management at companies as referred to in letter a, letter b, and letter c h. Companies where 50% or more of their management are management at companies as referred to in letter a, letter b, and letter c
i. Companies whose management from parties
as referred to in letter a, letter b, and/or letter c act as the controller j. Financial relationship 0310 k. KIK where the Bank and/or parties as referred to in letter a to letter i own 10% or more of shares in the KIC manager
l. Guarantee 0330
m. Others 0410
2. Non-Related Party
a. Individual Customer Receiving Facilities 9900 b. Group of Customer Receiving Facilities

Controller of Other Customer Receiving Facilities
Joint Ownership 9920
Financial Relationship other than
Guarantee
Guarantee 9940
Management/Management Relationship 9950

Explanation of the status of relationship with Bank as referred to in this Financial Services Authority Regulation and Appendix I which is an integral part of this Financial Services Authority Regulation.

VIII. Type of Fund Disbursement
This column is filled with the type of Fund Disbursement given by the Bank to the Customer Receiving Facilities as regulated in this appendix. This column is filled with the code:

No. Type of Fund Disbursement Code

Deposits 10
Sharia Securities 20
Receivables from Securities Purchased with Agreement to Resell (Reverse Repo)
Murabahah Receivables (net) 30
Salam Receivables 31
Istishna Receivables (net) 32
Musyarakah Financing 33
Mudharabah Financing 34
Ijarah 35
Qardh 37
Acceptance Receivables 39
Equity Participation 40
Temporary Equity Participation 45
Sharia Hedging Transactions 60
Other Fund Disbursement Forms 62
Guarantees 65
Letter of Credit (L/C) 70
Standby Letter of Credit (SBLC) 80
Other Fund Disbursement Forms in
Administrative Account Transactions
For Customers Receiving Facilities who obtain Fund Disbursement from the Bank in more than one type, this column is filled with the type of Fund Disbursement that has the largest Fund Disbursement amount. In the event that there is a collateral issuer/guarantee issuer/guarantor whose exposure is calculated due to the application of MRK Technique, this column is filled with code 62, which is Other Fund Disbursement Forms.

IX. Duration

Start
This column is filled with the date, month, and year of the start of the Fund Disbursement given.
Maturity
This column is filled with the date, month, and year of the maturity of the Fund Disbursement.

X. Amount of Rupiah Fund Disbursement
This column is filled with the amount of Fund Disbursement received by the Customer Receiving Facilities in Rupiah currency.

In the event that there is more than 1 (one) type of Fund Disbursement for 1 (one) Customer Receiving Facilities, the Bank sums up all values of Fund Disbursement for each type of Fund Disbursement by calculation as regulated in this Financial Services Authority Regulation. In the event that the Bank fills in information regarding the total Related Parties/customer groups of Customers Receiving Facilities/State-Owned Enterprises (BUMN) groups, this column is filled with the sum of all amounts of foreign currency Fund Disbursement from all Related Parties/members of the Customer Receiving Facilities group/members of the BUMN group.

XII. Exchange Rate
Filled with Bank Indonesia's closing exchange rate at the end of the reporting month, using the middle rate.

XIII. Type of Fund Disbursement
This column is filled with the type of Fund Disbursement given by the Subsidiary Company to the Customer Receiving Facilities as regulated in this appendix. This column is filled with the code:

No. Type of Fund Disbursement Code

Deposits 10
Sharia Securities 20
Receivables from Securities Purchased with Agreement to Resell (Reverse Repo)
Murabahah Receivables (net) 30
Salam Receivables 31
Istishna Receivables (net) 32
Musyarakah Financing 33
Mudharabah Financing 34
Ijarah 35
Qardh 37
Acceptance Receivables 39
Equity Participation 40
Temporary Equity Participation 45
Sharia Hedging Transactions 60
Other Fund Disbursement Forms 62
Guarantees 65
Letter of Credit (L/C) 70
Standby Letter of Credit (SBLC) 80
Other Fund Disbursement Forms in
Administrative Account Transactions
For Customers Receiving Facilities who obtain Fund Disbursement from the Bank in more than one type, this column is filled with the type of Fund Disbursement that has the largest Fund Disbursement amount. In the event that there is a collateral issuer/guarantee issuer/guarantor whose exposure is calculated due to the application of MRK Technique, this column is filled with code 62, which is Other Fund Disbursement Forms.

XIV. Duration

Start
This column is filled with the date, month, and year of the start of the Fund Disbursement given.
Maturity
This column is filled with the date, month, and year of the maturity of the Fund Disbursement.

XV. Amount of Rupiah Fund Disbursement
This column is filled with the amount of Fund Disbursement received by the Customer Receiving Facilities in Rupiah currency.

In the event that there is more than 1 (one) type of Fund Disbursement for 1 (one) Customer Receiving Facilities, the Bank sums up all values of Fund Disbursement for each type of Fund Disbursement by calculation as regulated in this Financial Services Authority Regulation. In the event that the Subsidiary Company fills in information regarding the total Related Parties/customer groups of Customers Receiving Facilities/State-Owned Enterprises (BUMN) groups, this column is filled with the sum of all amounts of Rupiah Fund Disbursement from all Related Parties/members of the Customer Receiving Facilities group/members of the BUMN group.

XVI. Amount of Foreign Currency Fund Disbursement
This column is filled with the amount of Fund Disbursement received by the Customer Receiving Facilities in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Customer Receiving Facilities.

In the event that there is more than 1 (one) type of Fund Disbursement for 1 (one) Customer Receiving Facilities, the Bank sums up all values of Fund Disbursement for each type of Fund Disbursement by calculation as regulated in this Financial Services Authority Regulation. In the event that the Bank fills in information regarding the total Related Parties/customer groups of Customers Receiving Facilities/State-Owned Enterprises (BUMN) groups, this column is filled with the sum of all amounts of foreign currency Fund Disbursement from all Related Parties/members of the Customer Receiving Facilities group/members of the BUMN group.

XVII. Exchange Rate
Filled with Bank Indonesia's closing exchange rate at the end of the reporting month, using the middle rate.

XVIII. Consolidated Capital
This column is filled with total Capital consolidated at the time of the reporting month.

XIX. Consolidated Amount of Rupiah Fund Disbursement
This column is filled with the amount of Fund Disbursement received by the Customer Receiving Facilities in Rupiah currency.

XX. Consolidated Amount of Foreign Currency Fund Disbursement
This column is filled with the amount of Fund Disbursement received by the Customer Receiving Facilities in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Customer Receiving Facilities.

In the event that there is more than 1 (one) type of Fund Disbursement for 1 (one) Customer Receiving Facilities, the Bank sums up all values of Fund Disbursement for each type of Fund Disbursement by calculation as regulated in this Financial Services Authority Regulation. In the event that the Bank fills in information regarding the total Related Parties/customer groups of Customers Receiving Facilities/State-Owned Enterprises (BUMN) groups, this column is filled with the sum of all amounts of foreign currency Fund Disbursement from all Related Parties/members of the Customer Receiving Facilities group/members of the BUMN group.

XXI. Quality
Quality of Fund Disbursement is the quality of the Fund Disbursement given by the Bank that is assessed according to regulations regarding the assessment of bank asset quality with quality classification as follows:

No. Quality Code

Smooth 1
Special Attention 2
Less Smooth 3
Doubtful 4
Bad 5

XXII. Notes

Part C
LARGE FUND DISBURSEMENT REPORT
Bank Name: PT Bank… (individual/consolidated)
Report Position: Month/Year
(in Millions of Rupiah)

Customer Receiving Facilities Fund Disbursement on Report Date (before MRK Technique) Core Capital % Total Fund Disbursement with Core Capital (Tier 1) Customer Number Name Individual/ Group Member / Total Group Group Name Group Number Status of Relationship with Bank Type of Fund Disbursement Duration Amount of Fund Disbursement Exchange Rate Start Maturity Rupiah Foreign Currency I II III IV V VI VII VIII.1 VIII.2 IX X XI XII XIII Guarantees/Collateral Given (MRK Technique) Form Quality Notes Guarantee/ Collateral Portion Guaranteed Issuer of Guarantee/ Collateral Guarantor Rating Rating Agency Rating Date Duration Amount of Fund Disbursement after MRK Technique (Unsecured Portion) Start Maturity Rupiah Foreign Currency % Total Fund Disbursement with Core Capital (Tier 1) XIV XV XVI XVII XVIII XIX XX.1 XX.2 XXI XXII XXIII XXIV XXV

Guidelines for Filling the Large Fund Disbursement Report In this table, all Fund Disbursements of 10% (ten percent) or more of the Bank's Core Capital (tier 1) to non-Related Parties are reported, before and after applying MRK Technique. This table does not include Large Fund Disbursements that have been exempted and reported via the Large Fund Disbursement Exemption Report.

COLUMN
I. Customer Number
This column is filled with the number of all Customer Receiving Facilities other than Related Parties, being individuals or groups of Customers Receiving Facilities.

II. Name
This column is filled with the name of all Customer Receiving Facilities other than Related Parties, being individuals or groups of Customers Receiving Facilities. In the event that the Bank fills in the total group of Customers Receiving Facilities/groups of BUMN, the column Name is filled with “Total”, followed on the next row by each name of the members of the Customer Receiving Facilities group. Customers that are “unknown clients” as referred to in this Financial Services Authority Regulation are also written by the Bank as “unknown client”. For Banks that do not have Large Fund Disbursements, the column Name of Customer Receiving Facilities is filled with “Nil”.

III. Individual/Group Member/Total Group
This column is filled with the code:

No. Individual/Group Member/Total Group Code

Individual 1
Group Member 2
Total Group 3
BUMN Group Member 5
Total BUMN Group 6

IV. Name of Customer Receiving Facilities Group
This column is filled with the name of the Customer Receiving Facilities group.

V. Number of Customer Receiving Facilities Group
This column is filled with the number of the Customer Receiving Facilities group.

VI. Status of Relationship with Bank
This column is filled with the code:

No. Status of Relationship with Bank Code

Individual Customer Receiving Facilities 9900
Group of Customer Receiving Facilities
a. Controller of Other Customer Receiving Facilities b. Joint Ownership 9920
c. Financial Relationship other than Guarantee 9930
d. Guarantee 9940 e. Management/Management Relationship 9950

VII. Type of Fund Disbursement
This column is filled with the type of Fund Disbursement given by the Bank to the Customer Receiving Facilities as regulated in this appendix. This column is filled with the code:

No. Type of Fund Disbursement Code

Deposits 10
Sharia Securities 20
Receivables from Securities Purchased with Agreement to Resell (Reverse Repo)
Murabahah Receivables (net) 30
Salam Receivables 31
Istishna Receivables (net) 32
Musyarakah Financing 33
Mudharabah Financing 34
Ijarah 35
Qardh 37
Acceptance Claims 39
Capital Participation 40
Temporary Capital Participation 45
Sharia Hedging Transactions 60
Other Forms of Fund Disbursement 62
Guarantees 65
Letter of Credit (L/C) 70
Standby Letter of Credit (SBLC) 80
Other Forms of Fund Disbursement in Administrative Account Transactions
For Facility Recipient Customers who receive Fund Disbursement from the Bank of more than one type, this column is filled with the type of Fund Disbursement that has the largest amount of Fund Disbursement. In the event that there is a collateral issuer/guarantee issuer/guarantor whose exposure is calculated due to the application of the MRK Technique, this column is filled with code 62, namely Other Forms of Fund Disbursement.

VIII. Duration

Start
This column is filled with the date, month, and year of the start of the Fund Disbursement provided.
Maturity
This column is filled with the date, month, and year of the maturity of the Fund Disbursement.

IX. Amount of Rupiah Fund Disbursement
This column is filled with the amount of Fund Disbursement received by the Facility Recipient Customer in Rupiah currency.
In the event that there is more than 1 (one) type of Fund Disbursement against 1 (one) Facility Recipient Customer, the Bank sums up all values of Fund Disbursement for each type of Fund Disbursement using the calculation method as regulated in this Financial Services Authority Regulation. In the event that the Bank fills in information regarding the total Related Parties/facility recipient customer groups/BUMN groups, this column is filled with the sum of all amounts of Rupiah Fund Disbursement from all Related Parties/members of facility recipient customer groups/members of BUMN groups.

X. Amount of Foreign Currency Fund Disbursement
This column is filled with the amount of Fund Disbursement received by the Facility Recipient Customer in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Facility Recipient Customer. In the event that there is more than 1 (one) type of Fund Disbursement against 1 (one) Facility Recipient Customer, the Bank sums up all values of Fund Disbursement for each type of Fund Disbursement using the calculation method as regulated in this Financial Services Authority Regulation. In the event that the Bank fills in information regarding the total Related Parties/facility recipient customer groups/BUMN groups, this column is filled with the sum of all amounts of foreign currency Fund Disbursement from all Related Parties/members of facility recipient customer groups/members of BUMN groups.

XI. Exchange Rate
Filled with Bank Indonesia's closing exchange rate at the end of the reporting month, using the middle rate.

XII. Core Capital (Tier 1)
This column is filled with the Bank's total Capital at the time of the reporting month, both individually and consolidated.

XIII. Percentage of Fund Disbursement with Core Capital (Tier 1)
Percentage of Fund Disbursement with Core Capital (Tier 1) of the Bank before applying the MRK Technique.

XIV. Form of Guarantee/Collateral
This column is filled with guarantees/collateral that can be calculated as a reducing factor in the calculation of BMPD and Large Fund Disbursement as referred to in this Financial Services Authority Regulation, namely with the following codes:
No. Form of Guarantee/Collateral Code

Giro 10
Savings 15
Deposit 20
Security Deposit 37
Gold 40
SBI/SBIS 45
SBN/SBSN 60
SBLC 65
Central Government Guarantee 68
Others 70
None 99
In the event that one Fund Disbursement uses more than 1 (one) guarantee/collateral, this column is filled with the form of guarantee/collateral that has the largest guaranteed portion.

XV. Guaranteed Portion
This column is filled with the portion of Fund Disbursement that receives protection from the MRK Technique instrument as referred to in this Financial Services Authority Regulation. In the event that one Fund Disbursement uses more than 1 (one) guarantee/collateral, the Bank sums up the value of each form of guarantee/collateral as the guaranteed portion with the largest value equal to the amount of Fund Disbursement. In the event that the Bank fills in information regarding the total Related Parties/facility recipient customer groups/BUMN groups, this column is filled with the sum of all guaranteed portions from all Related Parties/members of facility recipient customer groups/members of BUMN groups.

XVI. Issuer of Guarantee/Collateral
This column is filled with the issuer of the guarantee/collateral such as the Government of the Republic of Indonesia, Banks, or multilateral institutions according to the third-party group code and Bank code as referred to in regulations regarding integrated general bank reports.

XVII. Guarantor Rating
This column is filled with the rating of the guarantee issuer. This column is filled with the number 00 for guarantees/collaterals issued by the Government of the Republic of Indonesia or Bank Indonesia.

XVIII. Rating Agency
This column is filled with the name of the rating agency recognized by the Financial Services Authority as referred to in the Financial Services Authority Circular Letter regarding recognized rating agencies and ratings. This column is filled with the code:
No. Rating Agency Code

Moody’s Investor Service MIS
Standard and Poor’s SNP
Fitch Rating International FIN
Indonesia Securities Rating (Pefindo) PEF
Fitch Rating Indonesia FID
None 00

XIX. Rating Date
This column is filled with the date, month, and year when the rating was given.

XX. Duration

Start
This column is filled with the date, month, and year of the start of the guarantee/collateral provided.
Maturity
This column is filled with the date, month, and year of the maturity of the guarantee/collateral.

XXI. Amount of Rupiah Fund Disbursement after MRK Technique
This column is filled with the amount of Fund Disbursement individually or consolidated received by the Facility Recipient Customer in Rupiah currency after applying the MRK Technique. Fund Disbursement after MRK is part of Fund Disbursement that is not guaranteed with the MRK Technique as referred to in this Financial Services Authority Regulation. In the event that there is more than 1 (one) type of Fund Disbursement against 1 (one) Facility Recipient Customer, the Bank sums up all values of Fund Disbursement for each type of Fund Disbursement using the calculation method as regulated in this Financial Services Authority Regulation. In the event that the Bank fills in information regarding the total Related Parties/facility recipient customer groups/BUMN groups, this column is filled with the sum of all amounts of Rupiah Fund Disbursement from all members of facility recipient customer groups/members of BUMN groups.

XXII. Amount of Foreign Currency Fund Disbursement after MRK Technique
This column is filled with the amount of Fund Disbursement individually or consolidated received by the Facility Recipient Customer in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Facility Recipient Customer or one of the members of the facility recipient customer group or one of the related members after applying the MRK Technique. Fund Disbursement after MRK is part of Fund Disbursement that is not guaranteed with the MRK Technique as referred to in this Financial Services Authority Regulation. In the event that there is more than 1 (one) type of Fund Disbursement against 1 (one) Facility Recipient Customer, the Bank sums up all values of Fund Disbursement for each type of Fund Disbursement using the calculation method as regulated in this Financial Services Authority Regulation. In the event that the Bank fills in information regarding the total Related Parties/facility recipient customer groups/BUMN groups, this column is filled with the sum of all amounts of foreign currency Fund Disbursement from all members of facility recipient customer groups/members of BUMN groups.

XXIII. Percentage of Fund Disbursement with Core Capital (Tier 1)
Percentage of Fund Disbursement with Core Capital (Tier 1) of the Bank after applying the MRK Technique.

XXIV. Quality
Quality of Fund Disbursement, namely the quality of the Fund Disbursement provided by the Bank assessed according to regulations regarding the quality assessment of general bank assets with quality classification as follows:
No. Quality Code

Good (Lancar) 1
Special Attention (Dalam Perhatian Khusus) 2
Substandard (Kurang Lancar) 3
Doubtful (Diragukan) 4
Loss (Macet) 5

XXV. Notes

Part D
LARGE FUND DISBURSEMENT EXCLUSION REPORT
Bank Name: PT Bank… (individual/consolidated)
Report Position: Month/Year
(in Millions of Rupiah)
Facility Recipient Customer Fund Disbursement on Reporting Date Customer Number Core Capital Individual/ Group Member / Group Total Group Name Group Number Status Relationship Related to Bank Type Fund Disbursement Duration Amount of Fund Disbursement Exchange Rate Start Maturity Rupiah Foreign Currency I II III IV V VI VII VIII.1 VIII.2 IX X XI XII Specific BMPD Treatment Form of Specific BMPD Treatment Amount of Fund Disbursement with Specific BMPD Treatment Rupiah Foreign Currency % Total Fund Disbursement with Core Capital (Tier 1) XIII XIV XV XVI

Guidelines for Filling Out the Large Fund Disbursement Exclusion Report In this table, all Fund Disbursements of 10% (ten percent) or more of Core Capital (Tier 1) to parties other than Related Parties that are excluded from the calculation of BMPD and Large Fund Disbursement based on this Financial Services Authority Regulation are reported.

COLUMN
I. Customer Number
This column is filled with the number of all Facility Recipient Customers other than Related Parties, being individuals or groups of Facility Recipient Customers.

II. Name
This column is filled with the name of all Facility Recipient Customers other than Related Parties, being individuals or groups of Facility Recipient Customers. In the event that the Bank fills in the total group of Facility Recipient Customers/BUMN groups, the Name column is filled with “Total”, followed on the next line by the names of each member of the facility recipient customer group. Customers who are “unknown clients” as referred to in this Financial Services Authority Regulation are also written by the Bank as “unknown client”. For Banks that do not have Large Fund Disbursements, the Facility Recipient Customer Name column is filled with “Nihil”.

III. Individual/Group Member/Total Group
This column is filled with the code:
No. Individual/Group Member/Total Group Code

Individual 1
Group Member 2
Total Group 3
BUMN Group Member 5
Total BUMN Group 6

IV. Name of Facility Recipient Customer Group
This column is filled with the name of the facility recipient customer group.

V. Number of Facility Recipient Customer Group
This column is filled with the number of the facility recipient customer group.

VI. Status of Relationship Related to Bank
This column is filled with the code:
No. Status of Relationship Related to Bank Code

Facility Recipient Customer Individual 9900
Facility Recipient Customer Group
a. Controller of Other Facility Recipient Customers 9910 b. Joint Ownership 9920
c. Financial Relationship other than Guarantees 9930
d. Guarantees 9940 e. Management/Management Relationship 9950 Explanation of the status of the relationship with the related Bank as referred to in this Financial Services Authority Regulation and Appendix I which is an integral part of this Financial Services Authority Regulation.

VII. Type of Fund Disbursement
This column is filled with the type of Fund Disbursement provided by the Bank to the Facility Recipient Customer as regulated in this appendix. This column is filled with the code:
No. Type of Fund Disbursement Code

Placements 10
Sharia Securities 20
Claims on Securities Purchased with Agreement to Resell (Reverse Repo)
Murabahah Receivables (net) 30
Salam Receivables 31
Istishna Receivables (net) 32
Musyarakah Financing 33
Mudharabah Financing 34
Ijarah 35
Qardh 37
Acceptance Claims 39
Capital Participation 40
Temporary Capital Participation 45
Sharia Hedging Transactions 60
Other Forms of Fund Disbursement 62
Guarantees 65
Letter of Credit (L/C) 70
Standby Letter of Credit (SBLC) 80
Other Forms of Fund Disbursement in Administrative Account Transactions
For Facility Recipient Customers who receive Fund Disbursement from the Bank of more than one type, this column is filled with the type of Fund Disbursement that has the largest amount of Fund Disbursement. In the event that there is a collateral issuer/guarantee issuer/guarantor whose exposure is calculated due to the application of the MRK Technique, this column is filled with code 62, namely Other Forms of Fund Disbursement.

VIII. Duration

Start
This column is filled with the date, month, and year of the start of the Fund Disbursement provided.
Maturity
This column is filled with the date, month, and year of the maturity of the Fund Disbursement.

XI. Exchange Rate
Filled with Bank Indonesia's closing exchange rate at the end of the reporting month, using the middle rate.

XII. Core Capital (Tier 1)
This column is filled with the Bank's total Capital at the time of the reporting month, both individually and consolidated.

XIII. Form of Specific BMPD Treatment
This column is filled with specific BMPD treatment as regulated in these provisions, namely with the code:
No. Form of Specific BMPD Treatment Code

Fund Disbursement to the central government 1
Placements at Bank Indonesia 2
Purchase of Securities issued by the Government of the Republic of Indonesia and/or Bank Indonesia
Fund Disbursement guaranteed by the central government
Fund Disbursement to financial institutions meeting certain requirements
Portion of Fund Disbursement guaranteed by financial institutions meeting certain requirements
Fund Disbursement guaranteed with cash collateral
Fund Disbursement guaranteed with collateral in the form of Securities issued by the Government of the Republic of Indonesia and/or Bank Indonesia
Fund Disbursement guaranteed with SBLC issued by Prime Bank
Fund Disbursement guaranteed with SBLC issued by Prime Bank
Placements in other banks in Indonesia for daily liquidity management
Guarantees by BUMN/BUMD to support government programs
Fund Disbursement whose risk is borne by investor customers
Others 16
In the event that one Fund Disbursement receives more than 1 (one) specific BMPD treatment, this column is filled with the form of specific BMPD treatment that has the largest portion of specific BMPD treatment.

XIV. Amount of Rupiah Fund Disbursement Receiving Specific BMPD Treatment
This column is filled with the value of Rupiah Fund Disbursement individually or consolidated that receives specific BMPD treatment as referred to in this Financial Services Authority Regulation. In the event that there is more than 1 (one) type of Fund Disbursement against 1 (one) Facility Recipient Customer, the Bank sums up all values of Fund Disbursement for each type of Fund Disbursement using the calculation method as regulated in this Financial Services Authority Regulation.

XV. Amount of Foreign Currency Fund Disbursement Receiving Specific BMPD Treatment
This column is filled with the value of foreign currency Fund Disbursement individually or consolidated that receives specific BMPD treatment as referred to in this Financial Services Authority Regulation. In the event that there is more than 1 (one) type of Fund Disbursement against 1 (one) Facility Recipient Customer, the Bank sums up all values of Fund Disbursement for each type of Fund Disbursement using the calculation method as regulated in this Financial Services Authority Regulation.

XVI. Percentage of Fund Disbursement with Core Capital (Tier 1)
Percentage of Fund Disbursement receiving specific BMPD treatment with Core Capital (Tier 1) of the Bank.

Part E
BMPD VIOLATION OR BMPD EXCEEDANCE REPORT
Bank Name: PT Bank… (individual)
Report Position: Month/Year
(in Millions of Rupiah)
Facility Recipient Customer Fund Disbursement on Reporting Date (before MRK Technique) Core Capital Customer Number Core Capital Individual/ Group Member / Group Total Group Name Group Number Status Relationship Related to Bank Status Relationship Related to Bank Type Fund Disbursement Duration Amount of Fund Disbursement Exchange Rate Start Maturity Rupiah Foreign Currency I II III IV V VI VII VIII IX.1 IX.2 X XI XII XIII XIV Guarantee/Collateral Provided (MRK Technique) Violation BMPD Exceedance BMPD Form Quality Notes Guarantee/ Collateral Portion Guaranteed Issuer Guarantee/ Collateral Rating Guarantor Rating Agency Rating Date Duration Nominal % Nominal % Start Maturity XV XVI XVII XVIII XIX XX XXI.1 XXI.2 XXII XXIII XXIV XXV XXVI XXVII

Guidelines for Filling Out the BMPD Violation or BMPD Exceedance Report In this table, Facility Recipient Customers or groups of Facility Recipient Customers who commit BMPD Violations or BMPD Exceedances are reported. In the event that a group of Facility Recipient Customers commits a BMPD Violation or BMPD Exceedance, individual members of the facility recipient customer group are reported in this table even if the individual members of the facility recipient customer group do not commit a BMPD Violation or BMPD Exceedance.

COLUMN
I. Customer Number
This column is filled with the number of all Facility Recipient Customers other than Related Parties, being individuals or groups of Facility Recipient Customers.

II. Name
This column is filled with the name of all Facility Recipient Customers, Related Parties or other than Related Parties, being individuals or groups of Facility Recipient Customers. In the event that the Bank fills in the total Related Parties/facility recipient customer groups/BUMN groups, the Name column is filled with “Total”, followed on the next line by the names of each member of the group. Customers who are “unknown clients” as referred to in this Financial Services Authority Regulation are also written by the Bank as “unknown client”. For Banks that do not have BMPD violations or BMPD exceedances, the Facility Recipient Customer Name column is filled with “Nihil”. Meanwhile, for Banks that have negative capital, the Facility Recipient Customer Name column is filled with “ALL CUSTOMERS” and in the notes column filled with “Negative Capital”.

III. Individual/Group Member of Facility Recipient Customer/Total Group of Facility Recipient Customer
This column is filled with the code:
No. Individual/Group Member/Total Group Code

Individual 1
Group Member 2
Total Group 3
Total Related Parties 4
BUMN Group Member 5
Total BUMN Group 6

Next. In the event that there is 1 (one) Member of a Facility Recipient Customer Group/BUMN Group Member who is a member of more than 1 (one) facility recipient customer group/BUMN group, the Member of the Facility Recipient Customer Group/BUMN Group Member is reported in the details of each Total Facility Recipient Customer Group/Total BUMN Group. Banks report the total Related Parties and detail all Related Parties receiving Fund Disbursement from the Bank on subsequent lines. In the event that there is Fund Disbursement to the Government of the Republic of Indonesia and Bank Indonesia, the Bank fills this column with the code individual.

IV. Name of Facility Recipient Customer Group
This column is filled with the name of the facility recipient customer group.

V. Group Number
This column is filled with the number of the facility recipient customer group.

VI. Relationship Related to Bank
This column is filled with the code:
No. Relationship Related to Bank Code

Related Parties 1
Other than Related Parties 2

VII. Status of Relationship Related to Bank
This column is filled with the code:
No. Status of Relationship Related to Bank Code

Related Parties
a. Controllers and/or family of controllers of the Bank b. Legal entities in the event that the Bank acts as a controller
c. Companies in the event that individuals or companies as referred to in letter a act as a controller
d. Bank Management, family of Bank Management, and Executive Officers of the Bank e. Management at companies as referred to in letter a, letter b, and/or letter c f. Companies whose management consists of members of the Board of Commissioners at the Bank g. Companies where 50% or more of the management consists of management at companies as referred to in letter a, letter b, and letter c h. Companies where 50% or more of the management consists of management at companies as referred to in letter a, letter b, and letter c
i. Companies whose management from parties as referred to in letter a, letter b, and/or letter c act as controllers
j. Financial Relationship 0310 k. KIK where the Bank and/or parties as referred to in letter a to letter i own 10% or more of the shares in the KIK investment manager
l. Guarantees 0330
m. Others 0410
Other than Related Parties
a. Facility Recipient Customer Individual 9900 b. Facility Recipient Customer Group

Controller of Other Facility Recipient Customers
Joint Ownership 9920
Financial Relationship other than Guarantees 9930
Guarantees 9940

Management/Management Relationship 9950
Explanation of the status of the relationship with the related Bank as referred to in this Financial Services Authority Regulation and Appendix I which is an integral part of this Financial Services Authority Regulation.

VIII. Type of Fund Disbursement
This column is filled with the type of Fund Disbursement provided by the Bank to the Facility Recipient Customer as regulated in this appendix. This column is filled with the following codes:

No.	Type of Fund Disbursement	Code
1.	Placement	10
2.	Sharia Securities	20
3.	Receivables from Securities Purchased with a Commitment to Resell (Reverse Repo)	30
4.	Murabahah Receivables (net)	31
5.	Salam Receivables	32
6.	Istishna Receivables (net)	33
7.	Musyarakah Financing	34
8.	Mudharabah Financing	35
9.	Ijarah	37
10.	Qardh	39
11.	Acceptance Receivables	40
12.	Capital Participation	45
13.	Temporary Capital Participation	60
14.	Sharia Hedging Transactions	62
15.	Other Types of Fund Disbursement	65
16.	Guarantees	70
17.	Letter of Credit (L/C)	80
18.	Standby Letter of Credit (SBLC)	90
19.	Other Types of Fund Disbursement in Administrative Account Transactions	99

For Facility Recipient Customers who receive Fund Disbursements from the Bank in more than one type, this column is filled with the type of Fund Disbursement that has the largest Fund Disbursement amount.

In the event that there is a collateral issuer/guarantee issuer/guarantor whose exposure is calculated due to the application of MRK Techniques, this column is filled with code 62, which is Other Types of Fund Disbursement.

IX. Tenor

Start
This column is filled with the date, month, and year of the start of the Fund Disbursement provided.
Maturity
This column is filled with the date, month, and year of the maturity of the Fund Disbursement.

X. Amount of Fund Disbursement in Rupiah
This column is filled with the amount of Fund Disbursement received by the Facility Recipient Customer in Rupiah currency.

In the event that there is more than 1 (one) type of Fund Disbursement for 1 (one) Facility Recipient Customer, the Bank sums up all values of Fund Disbursements for each type of Fund Disbursement using the calculation method as regulated in this Financial Services Authority Regulation.

In the event that the Bank fills in information regarding the total Related Parties/facility recipient customer groups/SOE groups, this column is filled with the sum of all amounts of Fund Disbursement in Rupiah from all Related Parties/members of the facility recipient customer group/members of the SOE group.

XI. Amount of Fund Disbursement in Foreign Currency
This column is filled with the amount of Fund Disbursement received by the Facility Recipient Customer in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Facility Recipient Customer.

In the event that the Bank fills in information regarding the total Related Parties/facility recipient customer groups/SOE groups, this column is filled with the sum of all amounts of Fund Disbursement in foreign currency from all Related Parties/members of the facility recipient customer group/members of the SOE group.

XII. Exchange Rate
Filled with the Bank of Indonesia closing exchange rate at the end of the reporting month, using the middle rate.

XIII. Capital
This column is filled with the Bank's total Capital at the time of the reporting month, both individually and on a consolidated basis.

XIV. Core Capital (tier 1)
This column is filled with the Bank's total Capital at the time of the reporting month, both individually and on a consolidated basis.

XV. Type of Guarantee/Collateral
This column is filled with guarantees/collaterals that can be counted as reducing factors in the calculation of BMPD and Large Fund Disbursement as referred to in this Financial Services Authority Regulation, namely with the following codes:

No.	Type of Guarantee/Collateral	Code
1.	Current Account	10
2.	Savings	15
3.	Time Deposit	20
4.	Guarantee Deposit	37
5.	Gold	40
6.	SBI/SBIS	45
7.	SBN/SBSN	60
8.	SBLC	65
9.	Central Government Guarantee	68
10.	Others	70
11.	None	99

In the event that one Fund Disbursement uses more than 1 (one) guarantee/collateral, this column is filled with the type of guarantee/collateral that has the largest guaranteed portion.

XVI. Guaranteed Portion
This column is filled with the portion of the Fund Disbursement that receives protection from MRK Technique instruments as referred to in this Financial Services Authority Regulation.

In the event that one Fund Disbursement uses more than 1 (one) guarantee/collateral, the Bank sums up the value of each type of guarantee/collateral as the guaranteed portion with the largest value equal to the amount of Fund Disbursement.

In the event that the Bank fills in information regarding the total Related Parties/facility recipient customer groups/SOE groups, this column is filled with the sum of all guaranteed portions from all Related Parties/members of the facility recipient customer group/members of the SOE group.

XVII. Issuer of Guarantee/Collateral
This column is filled with the issuer of the guarantee/collateral such as the Government of the Republic of Indonesia, Banks, or multilateral institutions according to the third-party group code and Bank code as referred to in statutory regulations regarding integrated general bank reports.

XVIII. Guarantor Rating
This column is filled with the rating of the guarantee issuer. This column is filled with the number 00 for guarantees/collaterals issued by the Government of the Republic of Indonesia or Bank Indonesia.

No.	Rating Agency	Code
1.	Moody’s Investor Service	MIS
2.	Standard and Poor’s	SNP
3.	Fitch Rating International	FIN
4.	Indonesia Securities Rating (Pefindo)	PEF
5.	Fitch Rating Indonesia	FID
6.	None	00

XX. Rating Date
This column is filled with the date, month, and year when the rating was given.

XXI. Tenor

Start
This column is filled with the date, month, and year of the start of the guarantee/collateral provided.
Maturity
This column is filled with the date, month, and year of the maturity of the guarantee/collateral.

XXII. BMPD Violation Amount
This column is filled with the calculation method as follows:

BMPD for Individual Facility Recipient Customer =
{(Fund Disbursement – guaranteed portion) – 25% of Core Capital (tier 1)}
BMPD for Facility Recipient Customer Group =
{(Fund Disbursement – guaranteed portion) – 25% of Core Capital (tier 1)}
BMPD for Certain SOEs =
{(Fund Disbursement – guaranteed portion) – 30% of Total Capital}
BMPD for Related Parties =
{(Fund Disbursement – guaranteed portion) – 10% of Total Capital}

XXIII. BMPD Violation Percentage
Percentage calculation (%), BMPD Violation Amount divided by Bank Capital or Core Capital (tier 1) of the Bank multiplied by 100% (one hundred percent).
This column is filled from the calculation result:
(BMPD Violation ÷ (Total Capital or Core Capital (tier 1)) x 100%

XXIV. BMPD Excess Amount
This column is filled with the calculation method as follows:

BMPD for Individual Facility Recipient Customer =
{(Fund Disbursement – guaranteed portion) – 25% of Core Capital (tier 1)}
BMPD for Facility Recipient Customer Group =
{(Fund Disbursement – guaranteed portion) – 25% of Core Capital (tier 1)}
BMPD for Certain SOEs =
{(Fund Disbursement – guaranteed portion) – 30% of Total Capital}
BMPD for Related Parties =
{(Fund Disbursement – guaranteed portion) – 10% of Total Capital}

XXV. BMPD Excess Percentage
Percentage calculation (%), BMPD Excess Amount divided by Bank Capital or Core Capital (tier 1) of the Bank multiplied by 100% (one hundred percent).

This column is filled from the calculation result:
(BMPD Excess ÷ (Total Capital or Core Capital (tier 1)) x 100%

XXVI. Quality
Quality of Fund Disbursement, namely the quality of the Fund Disbursement provided by the Bank assessed according to regulations regarding the assessment of quality of general bank assets with quality classification as follows:

No.	Quality	Code
1.	Good	1
2.	Special Attention	2
3.	Substandard	3
4.	Doubtful	4
5.	Loss	5

XXVII. Notes

Part F
CONSOLIDATED BMPD VIOLATION OR BMPD EXCESS REPORT Bank Name : PT Bank… (consolidated) Report Position: Month/Year (in Millions of Rupiah)

Customer ID	Customer Name	Individual/Group Member/Total Group	Group Name	Group ID	Relationship with Bank	Status of Relationship with Bank	Type of Fund Disbursement	Tenor	Amount of Fund Disbursement	Exchange Rate	Consolidated Capital	Consolidated Capital	BMPD Violation	BMPD Excess	Quality	Notes
I	II	III	IV	V	VI	VII	VIII	IX.1	IX.2	X	XI	XII	XIII	XIV.1	XIV.2	XV	XVI	XVII	XVIII	XIX	XX	XXI	XXII	XXIII	XXIV	XXV	XXVI
								Start	Maturity	Rupiah	Foreign Currency			Type of Fund Disbursement	Tenor	Amount of Fund Disbursement after MRK Technique	Exchange Rate	Amount of Fund Disbursement	Nominal	%	Nominal	%
								Start	Maturity	Rupiah	Foreign Currency				Start	Maturity	Rupiah	Foreign Currency

Guidelines for Filling out the Consolidated BMPD Violation or BMPD Excess Report In this table, Facility Recipient Customers or groups of Facility Recipient Customers who commit BMPD Violation or BMPD Excess are reported. In the event that a group of Facility Recipient Customers commits BMPD Violation or BMPD Excess, individual members of the facility recipient customer group are reported in this table even if the individual members of the facility recipient customer group do not commit BMPD Violation or BMPD Excess.

COLUMN
I. Customer ID
This column is filled with the ID of all Facility Recipient Customers other than Related Parties in the form of individual or group of Facility Recipient Customers.

II. Name
This column is filled with the name of all Facility Recipient Customers, Related Parties or non-Related Parties in the form of individual or group of Facility Recipient Customers. In the event that the Bank fills in the total of Related Parties/facility recipient customer groups/SOE groups, the Name column is filled with “Total”, followed on the next line by the names of each group member.

Customers who are “unknown clients” as referred to in this Financial Services Authority Regulation are also written by the Bank as “unknown client”.

For Banks that do not have BMPD Violation or BMPD Excess, the Facility Recipient Customer Name column is filled with “Nil”. Meanwhile, for Banks that have negative capital, the Facility Recipient Customer Name column is filled with “ALL CUSTOMERS” and the notes column is filled with “Negative Capital”.

III. Individual/Facility Recipient Customer Group Member/Total Facility Recipient Customer Group
This column is filled with the following codes:

No.	Individual/Group Member/Total Group	Code
1.	Individual	1
2.	Group Member	2
3.	Total Group	3
4.	Total Related Parties	4
5.	SOE Group Member	5
6.	Total SOE Group	6

In the event that there is 1 (one) Facility Recipient Customer Group Member/SOE Group Member that is a member of more than 1 (one) facility recipient customer group/SOE group, the Facility Recipient Customer Group Member/SOE Group Member is reported in the details of each Total Facility Recipient Customer Group/Total SOE Group.

The Bank reports the total of Related Parties and details all Related Parties that received Fund Disbursements from the Bank on the following lines.

In the event that there is Fund Disbursement to the Government of the Republic of Indonesia and Bank Indonesia, the Bank fills this column with the code for individual.

IV. Name of Facility Recipient Customer Group
This column is filled with the name of the facility recipient customer group.

V. Group ID
This column is filled with the ID of the facility recipient customer group.

VI. Relationship with Bank
This column is filled with the following codes:

No.	Relationship with Bank	Code
1.	Related Party	1
2.	Non-Related Party	2

VII. Status of Relationship with Bank
This column is filled with the following codes:

No.	Status of Relationship with Bank	Code
1.	Related Party
a.	Controlling Party and/or family of the controlling party of the Bank
b.	Legal entity in the event that the Bank acts as the controlling party
c.	Company in the event that an individual or company as referred to in letter a acts as the controlling party
d.	Bank Management, family of Bank Management, and Executive Officers of the Bank
e.	Management in companies as referred to in letters a, b, and/or c
f.	Company whose management members are members of the Board of Commissioners at the Bank
g.	Company where 50% or more of its management members are management members in companies as referred to in letters a, b, and c
h.	Company where 50% or more of its management members are management members in companies as referred to in letters a, b, and c
i.	Company whose management members from parties as referred to in letters a, b, and/or c act as controlling parties
j.	Financial Relationship	0310
k.	KIK where the Bank and/or parties as referred to in letters a to i own 10% or more of shares in the investment manager of KIK
l.	Guarantee	0330
m.	Others	0410
2.	Non-Related Party
a.	Individual Facility Recipient Customer	9900
b.	Facility Recipient Customer Group
1)	Controlling Party of Other Facility Recipient Customers
2)	Joint Ownership	9920
3)	Financial Relationship other than Guarantee	9930
4)	Guarantee	9940
5)	Management/Management Relationship	9950

Explanation of the status of the relationship with the Bank as referred to in the Financial Services Authority Regulation and Appendix I which is an integral part of the Financial Services Authority Regulation.

No.	Type of Fund Disbursement	Code
1.	Placement	10
2.	Sharia Securities	20
3.	Receivables from Securities Purchased with a Commitment to Resell (Reverse Repo)	30
4.	Murabahah Receivables (net)	31
5.	Salam Receivables	32
6.	Istishna Receivables (net)	33
7.	Musyarakah Financing	34
8.	Mudharabah Financing	35
9.	Ijarah	37
10.	Qardh	39
11.	Acceptance Receivables	40
12.	Capital Participation	45
13.	Temporary Capital Participation	60
14.	Sharia Hedging Transactions	62
15.	Other Types of Fund Disbursement	65
16.	Guarantees	70
17.	Letter of Credit (L/C)	80
18.	Standby Letter of Credit (SBLC)	90
19.	Other Types of Fund Disbursement in Administrative Account Transactions	99

IX. Tenor

Start
This column is filled with the date, month, and year of the start of the Fund Disbursement provided.
Maturity
This column is filled with the date, month, and year of the maturity of the Fund Disbursement.

X. Amount of Fund Disbursement in Rupiah
This column is filled with the amount of Fund Disbursement received by the Facility Recipient Customer in Rupiah currency.

In the event that the Bank fills in information regarding the total Related Parties/facility recipient customer groups/SOE groups, this column is filled with the sum of all amounts of Fund Disbursement in foreign currency from all Related Parties/members of the facility recipient customer group/members of the SOE group.

XII. Exchange Rate
Filled with the Bank of Indonesia closing exchange rate at the end of the reporting month, using the middle rate.

XIII. Type of Fund Disbursement
This column is filled with the type of Fund Disbursement provided by the Bank to the Facility Recipient Customer as regulated in this appendix. This column is filled with the following codes:

No.	Type of Fund Disbursement	Code
1.	Placement	10
2.	Sharia Securities	20
3.	Receivables from Securities Purchased with a Commitment to Resell (Reverse Repo)	30
4.	Murabahah Receivables (net)	31
5.	Salam Receivables	32
6.	Istishna Receivables (net)	33
7.	Musyarakah Financing	34
8.	Mudharabah Financing	35
9.	Ijarah	37
10.	Qardh	39
11.	Acceptance Receivables	40
12.	Capital Participation	45
13.	Temporary Capital Participation	60
14.	Sharia Hedging Transactions	62
15.	Other Types of Fund Disbursement	65
16.	Guarantees	70
17.	Letter of Credit (L/C)	80
18.	Standby Letter of Credit (SBLC)	90
19.	Other Types of Fund Disbursement in Administrative Account Transactions	99

XIV. Tenor

Start
This column is filled with the date, month, and year of the start of the Fund Disbursement provided.
Maturity
This column is filled with the date, month, and year of the maturity of the Fund Disbursement.

XV. Amount of Fund Disbursement in Rupiah
This column is filled with the amount of Fund Disbursement received by the Facility Recipient Customer in Rupiah currency.

In the event that the Subsidiary Company fills in information regarding the total Related Parties/facility recipient customer groups/SOE groups, this column is filled with the sum of all amounts of Fund Disbursement in Rupiah from all Related Parties/members of the facility recipient customer group/members of the SOE group.

XVI. Amount of Fund Disbursement in Foreign Currency
This column is filled with the amount of Fund Disbursement received by the Facility Recipient Customer in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Facility Recipient Customer.

In the event that the Subsidiary Company fills in information regarding the total Related Parties/facility recipient customer groups/SOE groups, this column is filled with the sum of all amounts of Fund Disbursement in foreign currency from all Related Parties/members of the facility recipient customer group/members of the SOE group.

XVII. Exchange Rate
Filled with the Bank of Indonesia closing exchange rate at the end of the reporting month, using the middle rate.

XVIII. Consolidated Capital
Consolidated capital for the calculation of BMPD Violation is the total Capital on a consolidated basis in the last quarter before the realization of Fund Disbursement. Consolidated capital for the calculation of BMPD Excess is the total Capital or Core Capital (tier 1) on a consolidated basis in the reporting month.

XIX. Amount of Fund Disbursement in Rupiah on a consolidated basis
This column is filled with the amount of Fund Disbursement on a consolidated basis received by the Facility Recipient Customer in Rupiah currency.

XX. Amount of Fund Disbursement in Foreign Currency on a consolidated basis
This column is filled with the amount of Fund Disbursement on a consolidated basis received by the Facility Recipient Customer in foreign currency after being converted into Rupiah using the exchange rate at the end of the reporting month conducted by the Facility Recipient Customer.

In the event that the Subsidiary Company fills in information regarding the total Related Parties/facility recipient customer groups/SOE groups, this column is filled with the sum of all amounts of Fund Disbursement in foreign currency from all Related Parties/members of the facility recipient customer group/members of the SOE group.

XXI. BMPD Violation Amount
This column is filled with the calculation method as follows:

BMPD for Individual Facility Recipient Customer =
{(Fund Disbursement – guaranteed portion) – 25% of Core Capital (tier 1)}
BMPD for Facility Recipient Customer Group =
{(Fund Disbursement – guaranteed portion) – 25% of Core Capital (tier 1)}
BMPD for Certain SOEs =
{(Fund Disbursement – guaranteed portion) – 30% of Total Capital}
BMPD for Related Parties =
{(Fund Disbursement – guaranteed portion) – 10% of Total Capital}

XXII. BMPD Violation Percentage
Percentage calculation (%), BMPD Violation Amount divided by Bank Capital or Core Capital (tier 1) of the Bank multiplied by 100% (one hundred percent).
This column is filled from the calculation result:
(BMPD Violation ÷ (Total Capital or Core Capital (tier 1)) x 100%

XXIII. BMPD Excess Amount
This column is filled with the calculation method as follows:

BMPD for Individual Facility Recipient Customer =
{(Fund Disbursement – guaranteed portion) – 25% of Core Capital (tier 1)}
BMPD for Facility Recipient Customer Group =
{(Fund Disbursement – guaranteed portion) – 25% of Core Capital (tier 1)}
BMPD for Certain SOEs =
{(Fund Disbursement – guaranteed portion) – 30% of Total Capital}
BMPD for Related Parties =
{(Fund Disbursement – guaranteed portion) – 10% of Total Capital}

XXIV. BMPD Excess Percentage
Percentage calculation (%), BMPD Excess Amount divided by Bank Capital or Core Capital (tier 1) of the Bank multiplied by 100% (one hundred percent).
This column is filled from the calculation result:
(BMPD Excess ÷ (Total Capital or Core Capital (tier 1)) x 100%

This copy corresponds to the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja

XXV. Quality
Fund Disbursement Quality refers to the quality of the Fund Disbursements provided by the Bank, assessed in accordance with regulations regarding the assessment of the quality of commercial bank assets, with quality classification as follows:

No	Quality	Code
1.	Performing	1
2.	Special Attention	2
3.	Substandard	3
4.	Doubtful	4
5.	Loss	5

XXVI. Notes
Determined in Jakarta on December 17, 2021

CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Maximum Limit on Fund Disbursement and Large Fund Disbursement for Islamic Commercial Banks

Lineage: In force