Mechanism and Procedures for Separation of Sharia Units of Insurance and Reinsurance Companies — OJK — ID

To:

Board of Directors of Insurance Companies;
Board of Directors of Reinsurance Companies;
Board of Directors of Sharia Insurance Companies; and
Board of Directors of Sharia Reinsurance Companies,
At their respective locations.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 10/SEOJK.05/2024

CONCERNING

MECHANISM AND PROCEDURES FOR SEPARATION OF SHARIA UNITS OF INSURANCE AND REINSURANCE COMPANIES

In relation to the mandate of Article 10 paragraph (11) of Financial Services Authority Regulation Number 11 of 2023 concerning the Separation of Sharia Units of Insurance and Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2023 Number 19/OJK, Additional State Gazette of the Republic of Indonesia Number 44/OJK), it is necessary to regulate the mechanism, procedures, notification, announcement, reporting, and Financial Services Authority approval for the separation of Sharia units of insurance and reinsurance companies in this Financial Services Authority Circular as follows:

I. GENERAL PROVISIONS

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

Insurance Company means a general insurance company and a life insurance company.
Sharia Insurance Company means a Sharia general insurance company and a Sharia life insurance company.
Reinsurance Company means a company conducting reinsurance business.
Sharia Reinsurance Company means a company conducting Sharia reinsurance business.
Sharia Unit means a working unit at the headquarters of an Insurance Company and a Reinsurance Company that functions as the parent office of offices outside the headquarters conducting business based on Sharia principles.
Separation of Sharia Unit means a legal act performed by an Insurance Company and a Reinsurance Company to separate the Sharia Unit, resulting in the assets, liabilities, and equity of the Insurance Company and Reinsurance Company transferring by operation of law to the Sharia Insurance Company and Sharia Reinsurance Company.

II. PURPOSE AND METHOD OF SEPARATION OF SHARIA UNITS OF INSURANCE AND REINSURANCE COMPANIES

A. Purpose of Separation of Sharia Units of Insurance and Reinsurance Companies

The purpose of the Separation of Sharia Units is:

Strengthening the resilience structure and competitiveness of the insurance and reinsurance industry.
With the Separation of Sharia Units, it is expected that there will be an increase in the equity of the resulting Sharia Insurance Company or Sharia Reinsurance Company from the Separation of Sharia Units, thereby increasing the capacity of Sharia insurance or reinsurance in Indonesia. Furthermore, the Sharia insurance and reinsurance industry is expected to be able to compete with the conventional insurance and reinsurance industry at both national and global scales.
Creating more effective and efficient business operations.
With the Separation of Sharia Units, it is expected that the resulting Sharia Insurance Company or Sharia Reinsurance Company from the Separation of Sharia Units can focus more on core business activities, thereby increasing the effectiveness and efficiency of the operations of the resulting Sharia Insurance Company or Sharia Reinsurance Company.
Strengthening technology investment and human resources.
With the Separation of Sharia Units, it is expected that the resulting Sharia Insurance Company or Sharia Reinsurance Company from the Separation of Sharia Units will be able in the long term to invest capital in the procurement and development of information technology and human resource organization.
Protecting the interests of policyholders and participants.
With the Separation of Sharia Units, it is expected that the resulting Sharia Insurance Company or Sharia Reinsurance Company from the Separation of Sharia Units can apply Sharia principles comprehensively in order to protect consumers regarding the needs for Sharia insurance products.

B. Method of Separation of Sharia Units of Insurance and Reinsurance Companies

Separation of Sharia Units is carried out by:
a. Form 1, namely establishing a new Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of Sharia Units, followed by the transfer of participant portfolios to the new Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of Sharia Units; or b. Form 2, namely transferring the participant portfolio of the Sharia Unit to a Sharia Insurance Company or Sharia Reinsurance Company that has already obtained a business license.
Separation of Sharia Units by Form 1 as referred to in item 1 letter a can be carried out by:
a. 1 (one) Insurance Company or Reinsurance Company conducting the Separation of Sharia Units; or b. several Insurance Companies or Reinsurance Companies conducting the Separation of Sharia Units jointly.
Separation of Sharia Units by Form 1 as referred to in item 1 letter a can be carried out by:
a. The Insurance Company or Reinsurance Company conducting the Separation of Sharia Units becoming the controlling shareholder of the resulting Sharia Insurance Company or Sharia Reinsurance Company from the Separation of Sharia Units; b. The Insurance Company or Reinsurance Company conducting the Separation of Sharia Units becoming a shareholder and another company in the group of the Insurance Company or Reinsurance Company becoming the controlling shareholder of the resulting Sharia Insurance Company or Sharia Reinsurance Company from the Separation of Sharia Units; or
c. The Insurance Company or Reinsurance Company conducting the Separation of Sharia Units becoming the controlling shareholder of the resulting Sharia Insurance Company or Sharia Reinsurance Company from the Separation of Sharia Units, followed by takeover by another company within the group of the Insurance Company or Reinsurance Company.
Separation of Sharia Units by Form 2 as referred to in item 1 letter b can be carried out by:
a. Transfer of the Sharia Unit portfolio to 1 (one) or several Sharia Insurance Companies or Sharia Reinsurance Companies, whether related or not related to the Insurance Company or Reinsurance Company conducting the Separation of Sharia Units; or b. Takeover of a Sharia Insurance Company or Sharia Reinsurance Company by 1 (one) or several Insurance Companies or Reinsurance Companies conducting the Separation of Sharia Units, followed by the transfer of the Sharia Unit portfolio to the Sharia Insurance Company or Sharia Reinsurance Company that was taken over, as stated in the chart in the Appendix to format 1 which is an inseparable part of this Financial Services Authority Circular.

III. MECHANISM AND PROCEDURES FOR SEPARATION OF SHARIA UNITS BY ESTABLISHING A NEW SHARIA INSURANCE COMPANY OR SHARIA REINSURANCE COMPANY RESULTING FROM THE SEPARATION OF SHARIA UNITS FOLLOWED BY TRANSFER OF PARTICIPANT PORTFOLIOS TO THE NEW SHARIA INSURANCE COMPANY OR SHARIA REINSURANCE COMPANY RESULTING FROM THE SEPARATION OF SHARIA UNITS

The stages of Separation of Sharia Units Form 1 as referred to in Chapter II Section B item 1 letter a consist of:

A. Preparation for Separation of Sharia Units

Preparation for Separation of Sharia Units includes at least:

Formation of a Special Team (Project Management Officer) for the Implementation of Separation of Sharia Units.
The Insurance Company or Reinsurance Company conducting the Separation of Sharia Units grants authority to the special team to carry out the tasks and responsibilities of implementing the Separation of Sharia Units in accordance with the Separation of Sharia Units work plan.
Analysis of Financial, Human Resources, Business/Operational, and Legal Aspects.
The analysis covers insurance products, marketing networks, capital and equity, management, human resources, shareholder commitment, information technology, and accounting systems.
Identification and Verification of Assets and Liabilities to be Transferred.
The implementation of identification and verification of assets and liabilities to be transferred is carried out by:
a. Updating the data on the position of assets and liabilities of the Sharia Unit in the form of financial reports including transferred company funds, tabarru' funds, tanahud funds, and participant investment funds; and b. Updating the data on the position of assets, including investment placements in the form of direct investments or investments in related parties that have the potential to exceed the limits as referred to in Financial Services Authority Regulations concerning the financial health of Insurance and Reinsurance Companies.
Updating Sharia Unit Participation Data.
Updating data:
a. Sharia Unit participant portfolios in detail; and b. Active Sharia insurance policies or Sharia reinsurance agreements, in accordance with the effective date of cessation of acceptance of new business or new participants of the Sharia Unit.
Preparation, Submission, Approval, Notification, and Announcement of the Separation of Sharia Units Work Plan.
Provisions regarding the preparation, submission, approval, notification, and announcement of the Separation of Sharia Units work plan are implemented as follows:
a. The Separation of Sharia Units work plan explains the stages of Separation of Sharia Units from the preparation of Separation of Sharia Units to the closure of the Sharia Unit and the revocation of the establishment license of the Sharia Unit; b. The Financial Services Authority has the authority to request the Insurance Company and Reinsurance Company conducting the Separation of Sharia Units to adjust the Separation of Sharia Units work plan, if based on the Financial Services Authority's analysis results, the Separation of Sharia Units work plan submitted by the Company or approved by the Financial Services Authority is assessed as:
1. having unrealistic projections or targets;
2. potentially causing parties involved in the Separation of Sharia Units to violate regulations in the insurance field; and/or
3. the realization of the Separation of Sharia Units work plan is not in accordance with the targeted/plan;
  c. Adjustments to the Separation of Sharia Units work plan requested by the Financial Services Authority as referred to in letter b must be submitted to the Financial Services Authority no later than 20 (twenty) working days after the date of the letter requesting adjustment of the Separation of Sharia Units work plan from the Financial Services Authority;
  d. In the event that the Financial Services Authority approves the adjustment of the Separation of Sharia Units work plan as referred to in letter c, the Financial Services Authority issues a letter of approval for the Separation of Sharia Units work plan to the Insurance Company or Reinsurance Company conducting the Separation of Sharia Units; e. Insurance Companies and Reinsurance Companies having Sharia Units must implement the Separation of Sharia Units based on the Separation of Sharia Units work plan that has obtained approval from the Financial Services Authority as referred to in letter d; f. Insurance Companies and Reinsurance Companies conducting the Separation of Sharia Units are required to:
4. notify the Separation of Sharia Units work plan to policyholders and participants; and
5. announce the Separation of Sharia Units work plan to policyholders and participants, no later than 10 (ten) working days from the date of the Financial Services Authority's approval letter for the Separation of Sharia Units work plan;
  g. In the event of adjustments to the Separation of Sharia Units work plan that has obtained approval from the Financial Services Authority as referred to in letter d, which constitutes an adjustment to the method of Separation of Sharia Units as referred to in Chapter II Section B item 1, the Insurance Company and Reinsurance Company are required to:
6. notify changes to the Separation of Sharia Units work plan to policyholders and participants; and
7. announce changes to the Separation of Sharia Units work plan to policyholders, participants, and other interested parties, no later than 10 (ten) working days from the date of the Financial Services Authority's approval letter for the changes to the work plan;
  h. Notification of the work plan and changes to the Separation of Sharia Units work plan, including the plan for transfer of Sharia Unit participant portfolios and the plan for closure of the Sharia Unit to policyholders and participants as referred to in letter f item 1) and letter g item 1) can be delivered in letters or electronic communication media;
  i. Announcement of the work plan and changes to the Separation of Sharia Units work plan to policyholders and participants as referred to in letter f item 2) and letter g item 2) is announced in:
8. national circulation Indonesian language mass media, both electronic and/or print; and
9. the website of the Insurance Company and Reinsurance Company conducting the Separation of Sharia Units.

B. Establishment of Legal Entity of New Sharia Insurance Company or Sharia Reinsurance Company Resulting from Separation of Sharia Units

The stages for establishing a new Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of Sharia Units consist of:
a. preparation of legal documents for the establishment of the legal entity; b. preparation of the company's strategic plan;
c. preparation of company standard operating procedures (SOP);
d. submission of the company establishment application to the Ministry of Law and Human Rights, including legal entity ratification; and e. determination of company organs and organizational completeness.
In the implementation of the establishment of the legal entity of the new Sharia Insurance Company and Sharia Reinsurance Company resulting from the Separation of Sharia Units, the minimum paid-up capital size of the company refers to the law concerning limited liability companies.
In the implementation of the establishment of the legal entity of the new Sharia Insurance Company and Sharia Reinsurance Company resulting from the Separation of Sharia Units, the Insurance Company and Reinsurance Company conducting the Separation of Sharia Units must first hold a general meeting of shareholders with minutes approving the Separation of Sharia Units work plan with Form 1 mechanism as referred to in Chapter II Section B item 1 letter a.
The minutes of the general meeting of shareholders as referred to in item 3 are submitted by the new Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of Sharia Units to the Financial Services Authority as part of the business license application to the Financial Services Authority.

C. Application for Business License of New Sharia Insurance Company or Sharia Reinsurance Company Resulting from Separation of Sharia Units

The new Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of Sharia Units can only conduct business activities after obtaining a business license from the Financial Services Authority.
To obtain a business license as referred to in item 1, the Board of Directors of the new Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of Sharia Units submits a business license application to the Financial Services Authority by attaching the self-assessment form and documents for the business license application of the new Sharia Insurance Company and Sharia Reinsurance Company resulting from the Separation of Sharia Units as stated in the Appendix to format 2 which is an inseparable part of this Financial Services Authority Circular.
Submission of the business license application for the new Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of Sharia Units by the Insurance Company or Reinsurance Company as referred to in item 2 is submitted concurrently with:
a. application for assessment of competence and propriety for prospective principal parties of the new Sharia Insurance Company and Sharia Reinsurance Company resulting from the Separation of Sharia Units; b. reporting of Sharia insurance products that have obtained approval letters or registration from the Financial Services Authority or proof of reporting from the Financial Services Authority and are marketed by the Sharia Unit, which will continue to be marketed by the new Sharia Insurance Company resulting from the Separation of Sharia Units; and
c. application for approval of cooperation in single ownership, in the event that the new Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of Sharia Units will conduct cooperation in single ownership.
In order to support the implementation of the Separation of Sharia Units, members of the Sharia Supervisory Board from the Sharia Unit who are re-appointed as members of the Sharia Supervisory Board on the new Sharia Insurance Company and Sharia Reinsurance Company resulting from the Separation of Sharia Units are exempted from submitting applications for assessment of competence and propriety for prospective principal parties as referred to in item 3 letter a.
In order to report Sharia insurance products that will continue to be marketed by the new Sharia Insurance Company resulting from the Separation of Sharia Units as referred to in item 3 letter b, the new Sharia Insurance Company resulting from the Separation of Sharia Units attaches:
a. a list of Sharia insurance products whose marketing will be continued and discontinued; b. a statement letter from the Board of Directors and Actuary of the Insurance Company conducting the Separation of Sharia Units and the new Sharia Insurance Company resulting from the Separation of Sharia Units; and
c. an opinion from the Sharia Supervisory Board,
as part of the business license application to the Financial Services Authority.
The statement letter from the Board of Directors and Actuary as referred to in item 5 letter b, and the opinion from the Sharia Supervisory Board as referred to in item 5 letter c must meet the following provisions:
a. drafted and signed jointly by the Insurance Company conducting the Separation of Sharia Units and the Sharia Insurance Company resulting from the Separation of Sharia Units; and b. contains a statement regarding the continuation of marketing of Sharia insurance products with the same specifications as the Sharia insurance products previously marketed by the Sharia Unit without changing product specifications.
The new Sharia Insurance Company and Sharia Reinsurance Company resulting from the Separation of Sharia Units:
a. are exempted from meeting the minimum paid-up capital requirements as regulated in Financial Services Authority Regulations concerning business licensing and institutionalization of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies for the establishment of new Sharia Insurance Companies and Sharia Reinsurance Companies resulting from the Separation of Sharia Units by the method as referred to in Chapter II Section B item 1 letter a; and b. must have guarantee funds at least in accordance with the requirements in Financial Services Authority Regulations concerning business licensing and institutionalization of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies.
The Financial Services Authority grants approval or rejection of the business license application as referred to in item 2 no later than 20 (twenty) working days from the date the complete business license application documents are received.
In granting approval or rejection of the business license application as referred to in item 8, the Financial Services Authority conducts:
a. analysis of document completeness; b. assessment of competence and propriety for prospective principal parties; and
c. analysis of compliance with regulations in the insurance field.
In the event that based on the Financial Services Authority's analysis results as referred to in item 9 there are missing documents, the Board of Directors of the Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of Sharia Units must submit complete documents no later than 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority.
If within 20 (twenty) working days from the date of the document completeness request letter as referred to in item 10, the Financial Services Authority has not received a response to the document completeness request, the Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of Sharia Units is deemed to have cancelled the business license application.
In the event that the Board of Directors of the Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of Sharia Units has submitted complete documents as referred to in item 10, the Financial Services Authority grants approval or rejection in accordance with the provisions as referred to in item 8.
In the event that the Financial Services Authority rejects the business license application as referred to in item 8, the rejection is delivered in writing accompanied by the reasons for rejection.
In the event that the business license application as referred to in item 8 is approved, the Financial Services Authority establishes:
a. decision on the granting of business license for the new Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of Sharia Units; b. results of assessment of competence and propriety for principal parties;
c. results of assessment of competence and propriety for the Sharia Supervisory Board of the new Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of Sharia Units, in accordance with the results of the previous assessment of competence and propriety as Sharia Supervisory Board on the Sharia Unit;
d. letter confirming the list of Sharia insurance products that were marketed by the Sharia Unit and will continue to be marketed by the new Sharia Insurance Company resulting from the Separation of Sharia Units; and https://jdih.ojk.go.id/

e. approval of cooperation within a single ownership.

Insurance Companies and Reinsurance Companies that carry out Sharia Unit Separation are required to:
a. notify the Sharia Unit Separation to policyholders and participants; and b. announce the Sharia Unit Separation to policyholders and participants, no later than 20 (twenty) working days after obtaining a business license from the Financial Services Authority as referred to in item 14 letter a.
Notification of Sharia Unit Separation to policyholders and participants as referred to in item 15 letter a may be delivered in a letter or electronic communication media.
Announcement of Sharia Unit Separation to policyholders and participants as referred to in item 15 letter b is announced in:
a. Indonesian language mass media in electronic and/or print format that circulates nationally; and b. the website of the Insurance Company or Reinsurance Company that carries out Sharia Unit Separation.
Sharia Insurance Companies and Sharia Reinsurance Companies that have obtained a business license from the Financial Services Authority are required to conduct business activities no later than 3 (three) months calculated from the date the business license is established by the Financial Services Authority.
Sharia Insurance Companies and Sharia Reinsurance Companies that have obtained a business license from the Financial Services Authority are required to submit a report on the implementation of business activities as referred to in item 18 to the Financial Services Authority no later than 10 (ten) working days from the date business activities begin.

D. Transfer of Sharia Participant Portfolio to New Sharia Insurance Company or Sharia Reinsurance Company Resulting from Sharia Unit Separation

Insurance Companies and Reinsurance Companies that carry out Sharia Unit Separation transfer the participant portfolio from the Sharia Unit to the new Sharia Insurance Company and Sharia Reinsurance Company resulting from Sharia Unit Separation after the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation obtains a business license from the Financial Services Authority as referred to in Part C item 8.
The transfer of the Sharia Unit participant portfolio to the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation is carried out with:
a. transferring the participant portfolio, accompanied by the transfer of all rights and obligations of the Sharia Unit, at least covering all assets, liabilities, and equity owned and managed by the Sharia Unit; b. recording the company fund equity from the Sharia Unit of the Insurance Company and Reinsurance Company that carry out Sharia Unit Separation as paid-in capital addition in the new Sharia Insurance Company and Sharia Reinsurance Company resulting from Sharia Unit Separation;
c. not reducing the rights of policyholders, participants, ceding companies, and related parties;
d. recording of the transfer of the participant portfolio is carried out in accordance with applicable financial accounting standards in Indonesia; e. the transfer of tabarru' funds, tanahud funds, and participant investment funds from the Sharia Unit of the Insurance Company and Reinsurance Company that carry out Sharia Unit Separation is carried out with the following provisions:
1) must not use sales contracts; and
2) must use the taukil al-wakil ghairahu contract with obtaining a Sharia opinion from the Sharia supervisory board;
f. in the event that the transfer process of the portfolio from the Insurance Company and Reinsurance Company that carry out Sharia Unit Separation to the new Sharia Insurance Company and Sharia Reinsurance Company resulting from Sharia Unit Separation still has a shortage (deficit) of tabarru' funds and tanahud funds, the shortage (deficit) of tabarru' funds and tanahud funds must be covered by the Insurance Company and Reinsurance Company that carry out Sharia Unit Separation using a hibah (gift) contract; and g. in the event that the transfer process of the portfolio from the Insurance Company and Reinsurance Company that carry out Sharia Unit Separation to the new Sharia Insurance Company and Sharia Reinsurance Company resulting from Sharia Unit Separation still has a surplus of tabarru' funds and tanahud funds from the Sharia Unit, the surplus of tabarru' funds and tanahud funds must be transferred into the tabarru' funds in the Sharia Insurance Company and Sharia Reinsurance Company.
In the context of the transfer of the participant portfolio as referred to in item 1, the directors of the Insurance Company or Reinsurance Company that carry out Sharia Unit Separation must submit an application for approval of the transfer of the Sharia Unit participant portfolio to the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation to the Financial Services Authority with the following provisions:
a. stating the effective date of the cessation of acceptance of new business or new participants of the Sharia Unit; b. attaching the minutes of the General Meeting of Shareholders approving the Sharia Unit Separation as part of the application for approval of the transfer of the Sharia Unit participant portfolio;
c. attaching the self-assessment form and documents as listed in the Appendix in format 3 which is an integral part of this Financial Services Authority Circular; and
d. submitted no later than 10 (ten) working days from the date of the decision on the issuance of the business license for the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation by the Financial Services Authority.
The effective date of the cessation of acceptance of new business or new participants of the Sharia Unit as referred to in item 3 letter a is established with the provision that it must be no later than 5 (five) months after the business license for the Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation is established by the Financial Services Authority.
In the event that based on the Financial Services Authority's analysis there is a shortage of documents as referred to in item 3 and/or the Financial Services Authority requires supporting information, the directors of the Insurance Company or Reinsurance Company that carry out Sharia Unit Separation must submit complete documents no later than 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority.
If within 20 (twenty) working days from the date of the document completeness request letter as referred to in item 5, the Financial Services Authority has not received a response to the document completeness request, the Insurance Company or Reinsurance Company that carry out Sharia Unit Separation is deemed to have cancelled the application for the transfer of the Sharia Unit participant portfolio.
The Financial Services Authority provides approval or rejection within a maximum period of 20 (twenty) working days from the date the application is received completely.
In the event that the application for the transfer of the Sharia Unit participant portfolio as referred to in item 7 is approved, the Financial Services Authority sends a letter of approval for the transfer of the Sharia Unit participant portfolio to the Insurance Company or Reinsurance Company that carry out Sharia Unit Separation.
In the event that the Financial Services Authority rejects the application for the transfer of the Sharia Unit participant portfolio as referred to in item 7, the rejection is delivered in writing accompanied by the reasons for rejection.
Insurance Companies or Reinsurance Companies that have Sharia Units and have obtained approval from the Financial Services Authority as referred to in item 8 are required to:
a. transfer the Sharia Unit participant portfolio to the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation; b. settle all obligations of the Sharia Unit; and
c. return the rights of policyholders, participants, ceding companies, and related parties who reject the transfer of the portfolio,
no later than 6 (six) months after the date of the Financial Services Authority's approval letter regarding the transfer of the Sharia Unit participant portfolio.
Insurance Companies and Reinsurance Companies that have obtained approval for the transfer of the Sharia Unit participant portfolio as referred to in item 8 must:
a. notify the transfer of the Sharia Unit participant portfolio to policyholders and participants; and b. announce the transfer of the Sharia Unit participant portfolio to policyholders and participants, no later than 20 (twenty) working days after the date of the Financial Services Authority's approval letter regarding the transfer of the Sharia Unit participant portfolio to the Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation as referred to in item 8.
Notification of the transfer of the Sharia Unit participant portfolio to policyholders and participants as referred to in item 11 letter a may be delivered in a letter or electronic communication media, by giving policyholders and participants the opportunity to submit objections to the transfer of the portfolio.
Announcement of the transfer of the Sharia Unit participant portfolio to policyholders and participants as referred to in item 11 letter b is announced in:
a. Indonesian language mass media in electronic and/or print format that circulates nationally; and b. the website of the Insurance Company and Reinsurance Company that carry out Sharia Unit Separation, which contains information regarding the time period for policyholders and participants to submit objections and the mechanism for terminating Sharia insurance policies or Sharia reinsurance agreements in the event that policyholders and participants object to the transfer of the portfolio.
The implementation of the transfer of the Sharia Unit participant portfolio as referred to in item 10 is carried out in accordance with the last data of the Sharia Unit participant portfolio since the effective date of the cessation of acceptance of new business or new participants of the Sharia Unit as referred to in item 4.
In the event that the transfer of the Sharia Unit participant portfolio to the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation has been completed, the Insurance Company and Reinsurance Company that carry out Sharia Unit Separation submit a report on the implementation of the transfer of the Sharia Unit participant portfolio to the Financial Services Authority, with the following provisions:
a. attaching the self-assessment form and documents as listed in the Appendix in format 4 which is an integral part of this Financial Services Authority Circular; and b. submitted no later than 10 (ten) working days after the date of the implementation of the transfer of the Sharia Unit participant portfolio.
In the event that the transfer of the Sharia Unit participant portfolio to the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation has been completed, the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation:
a. adjusts the placement of guarantee funds by referring to the Financial Services Authority Regulation regarding the financial health of Insurance Companies and Reinsurance Companies with Sharia principles; and b. submits a report on the receipt of the transfer of the participant portfolio to the Financial Services Authority, no later than 10 (ten) working days after the Sharia Unit participant portfolio is received.
The report on the receipt of the transfer of the Sharia Unit participant portfolio includes evidence of the adjustment of the placement of guarantee funds as referred to in item 16, the self-assessment form, and documents listed in the Appendix in format 5 which is an integral part of this Financial Services Authority Circular.
In the event that policyholders, participants, ceding companies, or related parties reject the transfer of coverage to the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation, the coverage becomes terminated and the Insurance Company or Reinsurance Company that carry out Sharia Unit Separation or the Sharia Unit is required to return the rights of policyholders, participants, ceding companies, and/or related parties in accordance with:
a. the provisions of each Sharia insurance policy or Sharia reinsurance agreement; or b. in the event that the Sharia insurance policy or Sharia reinsurance agreement does not regulate the cancellation or return of rights of policyholders, participants, ceding companies, and/or related parties, it is carried out in accordance with:
1) general Sharia insurance practices regarding the return of rights of policyholders or participants in the event of the termination of a Sharia insurance policy based on a fatwa or Sharia compliance statement issued by an institution having the authority to issue fatwas in the field of Sharia; or
2) general Sharia insurance practices regarding the return of rights of policyholders or participants in the event of the termination of a Sharia insurance policy carried out based on an opinion from the Sharia supervisory board, in the event that there is no fatwa or Sharia compliance statement as referred to in item 1),
by applying the principle of consumer protection.

E. Reporting of Articles of Association Changes Due to Paid-in Capital Addition in Connection with the Transfer of Sharia Participant Portfolio

In order to fulfill the minimum equity requirements for the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation as regulated in the Financial Services Authority Regulation regarding the Separation of Sharia Units of Insurance and Reinsurance Companies, the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation that has received the transfer of the portfolio as referred to in Part D is required to carry out a paid-in capital addition.
The paid-in capital addition as referred to in item 1 must be reported by the directors of the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation to the Financial Services Authority as a report on the change of the Articles of Association of the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation.
The report on the change of the Articles of Association of the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation as referred to in item 2 is carried out with the following provisions:
a. attaching the self-assessment form and documents for the report on paid-in capital addition as listed in the Appendix in format 6, which is an integral part of this Financial Services Authority Circular; and b. submitted no later than 2 (two) months after the date of the completion of the transfer of the Sharia Unit participant portfolio to the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation.

F. Closure of Sharia Unit and Revocation of License for the Establishment of Sharia Unit

The revocation of the license for the establishment of the Sharia Unit from the Insurance Company or Reinsurance Company that has a Sharia Unit and has carried out the transfer of the Sharia Unit participant portfolio is carried out with:
a. submitting a report on the implementation of the cessation of business activities of the Sharia Unit; and b. submitting an application for the closure of the Sharia Unit, by the directors of the Insurance Company or Reinsurance Company that has a Sharia Unit to the Financial Services Authority.
The report on the implementation of the cessation of business activities of the Sharia Unit as referred to in item 1 letter a is submitted with the following provisions:
a. attaching the self-assessment form and documents as listed in the Appendix in format 7, which is an integral part of this Financial Services Authority Circular; and b. no later than 10 (ten) working days from the date the final balance sheet of the Sharia Unit is audited by a public accountant.
The application for the closure of the Sharia Unit as referred to in item 1 letter b is submitted with the following provisions:
a. attaching the self-assessment form as listed in the Appendix in format 8 which is an integral part of this Financial Services Authority Circular; and b. no later than 10 (ten) working days after the date of the implementation of the transfer of the Sharia Unit participant portfolio.
Based on the submission of reports and submission of applications as referred to in item 1, the Financial Services Authority carries out:
a. analysis on:
1) the report on the implementation of the transfer of the Sharia Unit participant portfolio as referred to in Part D item 15;
2) the report on the receipt of the transfer of the participant portfolio as referred to in Part D item 16;
3) the report on the implementation of the cessation of business activities of the Sharia Unit as referred to in item 2;
4) the application for the closure of the Sharia Unit as referred to in item 3; and
5) fulfillment of regulatory provisions; and
b. establishment of a decision on the revocation of the license for the establishment of the Sharia Unit no later than 30 (thirty) working days from the date the reports as referred to in item 1 are received completely.

IV. MECHANISM AND PROCEDURES FOR SEPARATION OF SHARIA UNITS BY TRANSFERRING THE SHARIA UNIT PARTICIPANT PORTFOLIO TO A SHARIA INSURANCE COMPANY OR SHARIA REINSURANCE COMPANY THAT HAS OBTAINED A BUSINESS LICENSE

A. Preparation for Sharia Unit Separation

Preparation for Sharia Unit Separation includes at least:

Formation of a Special Team (Project Management Officer) for the Implementation of Sharia Unit Separation.

The Insurance Company or Reinsurance Company that carries out Sharia Unit Separation grants authority to the special team to carry out the tasks and responsibilities for the implementation of Sharia Unit Separation in accordance with the Sharia Unit Separation work plan.

Analysis of Financial, Human Resources, Business/Operational, and Legal Aspects.

The analysis includes the availability of insurance products, marketing network, capitalization and equity, management, human resources, shareholder commitment, information technology, and accounting systems.

Identification and Verification of Assets and Liabilities to be Transferred.

Presenting the financial position related to the transfer of the participant portfolio includes:
a. tabarru' funds; b. participant investment funds;
c. company funds of at least the ujrah reserve at the time of transfer;
d. qardh required at the time of transfer; and e. tanahud funds for Sharia Units that have already have or have formed tanahud funds.

Updating of Sharia Unit Participants.

Updating data:
a. the Sharia Unit participant portfolio in detail; and b. active Sharia insurance policies or Sharia reinsurance agreements, in accordance with the effective date of the cessation of acceptance of new business or new participants of the Sharia Unit.

Offer to Prospective Sharia Insurance Companies and Sharia Reinsurance Companies Receiving the Transfer of the Sharia Unit Participant Portfolio.

The provisions regarding the offer to prospective Sharia Insurance Companies and Sharia Reinsurance Companies receiving the transfer of the Sharia Unit participant portfolio are carried out as follows:
a. the offer of the transfer of the Sharia Unit participant portfolio from the Insurance Company and Reinsurance Company that carry out Sharia Unit Separation with a specific mechanism agreed upon by the Sharia Insurance Company and Sharia Reinsurance Company receiving the transfer of the Sharia Unit participant portfolio; b. in the event that there is no Sharia Insurance Company or Sharia Reinsurance Company receiving the transfer of the Sharia Unit participant portfolio from the Insurance Company and Reinsurance Company that carry out Sharia Unit Separation until the deadline as referred to in the Financial Services Authority Regulation regarding the Separation of Sharia Units of Insurance and Reinsurance Companies, the Sharia Unit of the Insurance Company and Reinsurance Company is required to settle the rights and obligations to policyholders, participants, ceding companies, and/or related parties;
c. the settlement of rights and obligations to policyholders, participants, ceding companies, and/or related parties as referred to in letter b is carried out among other ways by terminating the policy or participation accompanied by granting the rights of policyholders, participants, ceding companies, and/or related parties in accordance with:
1) the provisions of each Sharia insurance policy or Sharia reinsurance agreement; or
2) in the event that the Sharia insurance policy or Sharia reinsurance agreement does not regulate the cancellation or return of rights of policyholders, participants, ceding companies, and/or related parties, it is carried out in accordance with:
a) general Sharia insurance practices regarding the return of rights of policyholders or participants in the event of the termination of a Sharia insurance policy based on a fatwa or Sharia compliance statement issued by an institution having the authority to issue fatwas in the field of Sharia; or b) general Sharia insurance practices regarding the return of rights of policyholders or participants in the event of the termination of a Sharia insurance policy carried out based on an opinion from the Sharia supervisory board, in the event that there is no fatwa or Sharia compliance statement as referred to in item a), by applying the principle of consumer protection. d. the granting of rights to policyholders, participants, ceding companies, and/or related parties as referred to in letter b is sourced from:
1) the cash value that becomes the right of policyholders, participants, ceding companies, and/or related parties;
2) the share of ujrah and tabarru' fund contributions for the unexpired period; and
3) hibah (gift) from the funds of the Insurance Company and Reinsurance Company that carry out Sharia Unit Separation, as a form of company responsibility for being unable to carry out the Sharia insurance contract until the end of the contract period;
e. in the event that the Sharia Insurance Company receiving the transfer...

The transfer of Sharia Unit participant portfolios to an Insurance Company or Reinsurance Company that does not have a similar Sharia insurance product to the participant portfolio of the transferred Sharia insurance product, the Sharia Insurance Company receiving the transfer of the Sharia Unit participant portfolio must submit an application for approval or report on the Sharia insurance product first before the implementation of the portfolio transfer; and

f. the application for approval or report on the Sharia insurance product as referred to in letter e, must be submitted before the Insurance Company and Reinsurance Company with Sharia Units submit an application for approval of the portfolio transfer.

Formulation, Submission, Approval, Notification, and Announcement of the Sharia Unit Separation Work Plan.
Provisions regarding the formulation, submission, approval, notification, and announcement of the Sharia Unit Separation Work Plan are implemented as follows:

a. the Sharia Unit Separation Work Plan explains the description of the stages of Sharia Unit Separation from the preparation of Sharia Unit Separation to the closure of the Sharia Unit and the revocation of the business license for the establishment of the Sharia Unit;

b. the Financial Services Authority is authorized to request Insurance Companies and Reinsurance Companies conducting Sharia Unit Separation to make adjustments to the Sharia Unit Separation Work Plan, if based on the Financial Services Authority's analysis results, the Sharia Unit Separation Work Plan that has been submitted by the Company or approved by the Financial Services Authority is assessed to:
1) have projections or targets that are unrealistic;
2) have the potential to cause parties involved in Sharia Unit Separation to violate regulations in the field of insurance; and/or
3) the realization of the Sharia Unit Separation Work Plan is not in accordance with the targeted/planned;

c. adjustments to the Sharia Unit Separation Work Plan requested by the Financial Services Authority as referred to in letter b, must be submitted to the Financial Services Authority no later than 20 (twenty) working days after the date of the letter requesting adjustment of the Sharia Unit Separation Work Plan from the Financial Services Authority;

d. in the event that the Financial Services Authority approves the adjustment of the Sharia Unit Separation Work Plan as referred to in letter c, the Financial Services Authority issues a letter of approval for the Sharia Unit Separation Work Plan to the Insurance Company or Reinsurance Company conducting Sharia Unit Separation;

e. Insurance Companies and Reinsurance Companies with Sharia Units must implement Sharia Unit Separation based on the Sharia Unit Separation Work Plan that has received approval from the Financial Services Authority as referred to in letter d;

f. Insurance Companies and Reinsurance Companies conducting Sharia Unit Separation are required to:
1) notify the Sharia Unit Separation Work Plan to policyholders and participants; and
2) announce the Sharia Unit Separation Work Plan to policyholders and participants, no later than 10 (ten) working days since the date of the Financial Services Authority's approval letter for the Sharia Unit Separation Work Plan;

g. in the event of adjustments to the Sharia Unit Separation Work Plan that has received approval from the Financial Services Authority as referred to in letter d, which constitutes an adjustment to the method of Sharia Unit Separation as referred to in Chapter II Part B Number 1, Insurance Companies and Reinsurance Companies are required to:
1) notify changes to the Sharia Unit Separation Work Plan to policyholders and participants; and
2) announce changes to the Sharia Unit Separation Work Plan to policyholders, participants, and other interested parties, no later than 10 (ten) working days since the date of the Financial Services Authority's approval letter for the changes to the work plan;

h. notification of the work plan and changes to the Sharia Unit Separation Work Plan, including the plan for the transfer of Sharia Unit participant portfolios and the plan for the closure of the Sharia Unit to policyholders and participants as referred to in letter f number 1) and letter g number 1) can be delivered in letters or electronic communication media; and

i. announcement of the work plan and changes to the Sharia Unit Separation Work Plan to policyholders and participants as referred to in letter f number 2) and letter g number 2) is announced in:
1) national circulation electronic and/or print Indonesian language mass media; and
2) the website of the Insurance Company and Reinsurance Company conducting Sharia Unit Separation.

B. Transfer of Sharia Unit Participant Portfolios to Sharia Insurance Companies or Sharia Reinsurance Companies Receiving the Transfer of Sharia Unit Participant Portfolios That Have Obtained Business Licenses

Insurance Companies and Reinsurance Companies conducting Sharia Unit Separation transfer the participant portfolios from Sharia Units to Sharia Insurance Companies and Sharia Reinsurance Companies that have obtained business licenses from the Financial Services Authority.
In the implementation of the portfolio transfer, Insurance Companies and Reinsurance Companies conducting Sharia Unit Separation must first hold a general meeting of shareholders approving the separation of Sharia Units with the mechanism of Form 2 as referred to in Chapter II Part B Number 1 letter b.
The transfer of Sharia Unit participant portfolios to Sharia Insurance Companies or Sharia Reinsurance Companies is carried out with the following provisions:

a. transferred to Sharia Insurance Companies and Sharia Reinsurance Companies that have similar products;

b. does not cause the Sharia Insurance Companies and Sharia Reinsurance Companies receiving the transfer to violate regulations;

c. transferring the participant portfolios of Sharia Units, accompanied by the transfer of participant portfolios including:
1) tabarru’ funds;
2) participant investment funds;
3) company funds of at least the ujrah reserve at the time of transfer; and
4) qardh required at the time of transfer;

d. in addition to the participant portfolios as referred to in letter c, the transfer of Sharia Unit participant portfolios also includes tanhud funds for Sharia Units that have established or formed tanhud funds;

e. does not reduce the rights of policyholders, participants, ceding companies, and related parties;

f. recording of the transfer of participant portfolios is carried out in accordance with applicable financial accounting standards in Indonesia;

g. the transfer of tabarru’ funds, tanhud funds, and participant investment funds from the Sharia Units of Insurance Companies and Reinsurance Companies conducting Sharia Unit Separation is carried out with the following provisions:
1) must not use sales contracts; and
2) must use taukil al-wakil ghairahu contracts with the condition of obtaining a Sharia opinion from the Sharia supervisory board;

h. in the event that the portfolio transfer process from Insurance Companies and Reinsurance Companies conducting Sharia Unit Separation to Sharia Insurance Companies and Sharia Reinsurance Companies still has a shortage (deficit) of tabarru’ funds and tanhud funds, the shortage (deficit) of tabarru’ funds and tanhud funds must be covered by the Insurance Company and Reinsurance Company conducting Sharia Unit Separation using hibah contracts; and

i. in the event that the portfolio transfer process from Insurance Companies and Reinsurance Companies conducting Sharia Unit Separation to Sharia Insurance Companies and Sharia Reinsurance Companies still has a surplus (surplus) of tabarru’ funds and tanhud funds from the Sharia Unit, the surplus (surplus) of tabarru’ funds and tanhud funds must be transferred into the tabarru’ funds in the Sharia Insurance Company and Sharia Reinsurance Company.

In the context of the transfer of participant portfolios as referred to in number 1, the directors of the Insurance Company or Reinsurance Company conducting Sharia Unit Separation must submit an application for approval of the transfer of Sharia Unit participant portfolios to the Financial Services Authority with the following provisions:

a. stating the effective date of the cessation of acceptance of new business or new participants of the Sharia Unit;

b. attaching the minutes of the general meeting of shareholders approving the Sharia Unit Separation as part of the application for approval of the transfer of Sharia Unit participant portfolios; and

c. attaching the self-assessment form and documents as listed in the Appendix in Format 3 which is an integral part of this Financial Services Authority Circular.

The effective date of the cessation of acceptance of new business or new participants of the Sharia Unit as referred to in number 4 letter a is determined with the provision no later than 3 (three) months before the date of completion of the portfolio transfer.
In the event that based on the Financial Services Authority's analysis results there are missing documents as referred to in number 4 and/or the Financial Services Authority needs supporting information, the directors of the Insurance Company or Reinsurance Company conducting Sharia Unit Separation must submit document completeness no later than 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority.
If within 20 (twenty) working days since the date of the document completeness request letter as referred to in number 6, the Financial Services Authority has not received a response to the document completeness request, the Insurance Company or Reinsurance Company conducting Sharia Unit Separation is deemed to have cancelled the application for the transfer of Sharia Unit participant portfolios.
The Financial Services Authority provides approval or rejection within a maximum period of 20 (twenty) working days since the application is received completely.
In the event that the application for the transfer of Sharia Unit participant portfolios as referred to in number 8 is approved, the Financial Services Authority issues a letter of approval for the transfer of Sharia Unit participant portfolios to the Insurance Company or Reinsurance Company conducting Sharia Unit Separation.
In the event that the Financial Services Authority rejects the application for the transfer of Sharia Unit participant portfolios as referred to in number 8, the rejection is communicated in writing accompanied by the reasons for rejection.
Insurance Companies or Reinsurance Companies with Sharia Units that have obtained approval from the Financial Services Authority as referred to in number 9 are required to:

a. transfer the participant portfolios of Sharia Units to Sharia Insurance Companies or Sharia Reinsurance Companies;

b. settle all obligations of the Sharia Unit; and

c. return the rights of policyholders, participants, ceding companies, and related parties who reject the portfolio transfer,

no later than 6 (six) months after the date of the Financial Services Authority's approval letter for the transfer of Sharia Unit participant portfolios.

Insurance Companies and Reinsurance Companies that have obtained approval for the transfer of Sharia Unit participant portfolios as referred to in number 9 must:

a. notify the transfer of Sharia Unit participant portfolios to policyholders and participants; and

b. announce the transfer of Sharia Unit participant portfolios to policyholders and participants,

no later than 20 (twenty) working days after the date of the Financial Services Authority's approval letter for the transfer of Sharia Unit participant portfolios to Sharia Insurance Companies or Sharia Reinsurance Companies as referred to in number 9.

Notification of the transfer of Sharia Unit participant portfolios to policyholders and participants as referred to in number 12 letter a can be delivered in letters or electronic communication media, by giving policyholders and participants the opportunity to submit objections to the portfolio transfer.
Announcement of the transfer of Sharia Unit participant portfolios to policyholders and participants as referred to in number 12 letter b is announced in:

a. national circulation electronic and/or print Indonesian language mass media; and

b. the website of the Insurance Company and Reinsurance Company conducting Sharia Unit Separation, which contains information regarding the time period for policyholders and participants to submit objections and the mechanism for terminating Sharia insurance policies or Sharia reinsurance agreements in the event that policyholders and participants object to the portfolio transfer.

The implementation of the transfer of Sharia Unit participant portfolios as referred to in number 11 is carried out in accordance with the last data of the Sharia Unit participant portfolios since the effective date of the cessation of acceptance of new business or new participants of the Sharia Unit as referred to in number 5.
In the event that the transfer of Sharia Unit participant portfolios to Sharia Insurance Companies or Sharia Reinsurance Companies has been completed, the Insurance Company and Reinsurance Company conducting Sharia Unit Separation submit a report on the implementation of the transfer of Sharia Unit participant portfolios to the Financial Services Authority, with the following provisions:

a. attaching the self-assessment form and documents as listed in the Appendix in Format 4 which is an integral part of this Financial Services Authority Circular; and

b. submitted no later than 10 (ten) working days after the date of the implementation of the transfer of Sharia Unit participant portfolios from the Sharia Unit.

In the event that the transfer of Sharia Unit participant portfolios to Sharia Insurance Companies or Sharia Reinsurance Companies has been completed, the Sharia Insurance Company or Sharia Reinsurance Company submits a report on the receipt of the transfer of Sharia Unit participant portfolios to the Financial Services Authority, with the following provisions:

a. attaching the self-assessment form and documents as listed in the Appendix in Format 5 which is an integral part of this Financial Services Authority Circular; and

b. submitted no later than 10 (ten) working days after the Sharia Unit participant portfolios are received.

In the event that policyholders, participants, ceding companies, or related parties reject the transfer of coverage to the new Sharia Insurance Company or Sharia Reinsurance Company resulting from Sharia Unit Separation, the coverage becomes terminated and the Insurance Company or Reinsurance Company conducting Sharia Unit Separation or the Sharia Unit is required to return the rights of policyholders, participants, ceding companies, and/or related parties in accordance with:

a. the provisions of each Sharia insurance policy or Sharia reinsurance agreement;

b. in the event that Sharia insurance policies or Sharia reinsurance agreements do not regulate the cancellation or return of rights of policyholders, participants, ceding companies, and/or related parties, then it is carried out in accordance with:
1) general Sharia insurance practices regarding the return of rights of policyholders or participants in the event of termination of Sharia insurance policies based on fatwas or statements of Sharia compliance issued by institutions having authority in setting fatwas in the field of Sharia; or
2) general Sharia insurance practices regarding the return of rights of policyholders or participants in the event of termination of Sharia insurance policies based on opinions from the Sharia supervisory board, in the event that there are no fatwas or statements of Sharia compliance as referred to in number 1),
by applying consumer protection principles.

Insurance Companies and Reinsurance Companies conducting Sharia Unit Separation preceded by the takeover of Sharia Insurance Companies or Sharia Reinsurance Companies that will receive the transfer of Sharia Unit participant portfolios as referred to in Chapter II Part B Number 4 letter b, are exempted from meeting the minimum paid-up capital requirements as regulated in Financial Services Authority Regulations regarding business licensing and institutional structure of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies.

C. Closure of Sharia Units and Revocation of Licenses for the Establishment of Sharia Units

Revocation of the license for the establishment of Sharia Units from Insurance Companies or Reinsurance Companies with Sharia Units that have implemented the transfer of Sharia Unit participant portfolios, is carried out with:

a. submitting a report on the implementation of the cessation of business activities of the Sharia Unit; and

b. submitting an application for the closure of the Sharia Unit, by the directors of the Insurance Company or Reinsurance Company with Sharia Units to the Financial Services Authority.

The report on the implementation of the cessation of business activities of the Sharia Unit as referred to in number 1 letter a, is submitted with the following provisions:

a. attaching the self-assessment form and documents as listed in the Appendix in Format 7, which is an integral part of this Financial Services Authority Circular; and

b. no later than 10 (ten) working days since the date the final balance sheet of the Sharia Unit is audited by a public accountant.

The application for the closure of the Sharia Unit as referred to in number 1 letter b, is submitted with the following provisions:

a. attaching the self-assessment form as listed in the Appendix in Format 8 which is an integral part of this Financial Services Authority Circular; and

b. no later than 10 (ten) working days after the date of the implementation of the transfer of Sharia Unit participant portfolios from the Sharia Unit.

Based on the submission of reports and submission of applications as referred to in number 2, the Financial Services Authority conducts:

a. analysis on:
1) reports on the implementation of the transfer of Sharia Unit participant portfolios as referred to in Part B Number 16;
2) reports on the receipt of the transfer of participant portfolios as referred to in Part B Number 17;
3) reports on the implementation of the cessation of business activities of the Sharia Unit as referred to in number 2;
4) applications for the closure of Sharia Units as referred to in number 3; and
5) fulfillment of regulatory provisions; and

b. determination of the decision to revoke the license for the establishment of Sharia Units no later than 30 (thirty) working days since the reports as referred to in number 1 are received completely.

V. OTHER PROVISIONS

The description of all activities of Sharia Unit Separation at each stage as referred to in Chapter III and Chapter IV and the plan for the implementation time targets of each stage are formulated in accordance with the format as listed in the Appendix in Format 9 which is an integral part of this Financial Services Authority Circular, which can be used as working papers or implementation guidelines for Insurance Companies and Reinsurance Companies conducting Sharia Unit Separation.
In the event that Sharia Unit Separation has the potential to cause Insurance Companies or Reinsurance Companies that are shareholders of Sharia Insurance Companies or Sharia Reinsurance Companies resulting from Sharia Unit Separation to exceed investment limits in the form of direct participation and/or investment limits on related parties, the placement of investments can be carried out after first obtaining approval from the Financial Services Authority as referred to in Financial Services Authority Regulations regarding the financial health of Insurance Companies and Reinsurance Companies and Financial Services Authority Regulations regarding the financial health of Sharia Insurance Companies and Sharia Reinsurance Companies.
Applications for approval as referred to in number 2 as part of the business license application documents are carried out in accordance with the self-assessment form as listed in the Appendix in Format 10 which is an integral part of this Financial Services Authority Circular.
Approval at the time of business licenses or changes in ownership in the context of Sharia Unit Separation includes the fulfillment of Financial Services Authority approval for investment placements in the form of direct participation and/or investments on related parties that exceed the limits as referred to in number 2.

VI. TRANSITIONAL PROVISIONS

The obligation to notify and announce the Sharia Unit Separation Work Plan as referred to in Chapter III Part A Number 5 letter f and Chapter IV Part A Number 6 letter f, for Insurance Companies and Reinsurance Companies conducting Sharia Unit Separation that have obtained approval letters from the Financial Services Authority for the Sharia Unit Separation Work Plan before this Financial Services Authority Circular is established, are carried out no later than 2 (two) months since the date this Financial Services Authority Circular takes effect.

VII. CLOSING PROVISIONS

This Financial Services Authority Circular takes effect on the date of establishment.

Established in Jakarta on 27 September 2024
EXECUTIVE HEAD OF INSURANCE, INSURANCE, AND PENSION FUND SUPERVISOR FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, OGI PRASTOMIYONO

s/s s/s https://jdih.ojk.go.id/

Format
APPENDIX
FINANCIAL SERVICES AUTHORITY CIRCULAR
REPUBLIC OF INDONESIA
NUMBER 10/SEOJK.05/2024
REGARDING
MECHANISM AND PROCEDURES FOR SEPARATION OF SHARIA UNITS OF INSURANCE AND REINSURANCE COMPANIES

FORMAT 1
Chart of Sharia Unit Separation with Form 2 Method

A. Transfer of all Sharia Unit portfolios to one or more Sharia Insurance Companies or Sharia Reinsurance Companies, whether related or not related to the Insurance Company or Reinsurance Company conducting Sharia Unit Separation

B. Takeover of Sharia Insurance Companies or Sharia Reinsurance Companies by one or more Insurance Companies or Reinsurance Companies conducting Sharia Unit Separation followed by the transfer of all Sharia Unit portfolios to the Sharia Insurance Companies or Sharia Reinsurance Companies taken over

https://jdih.ojk.go.id/

FORMAT 2
SELF-ASSESSMENT FORM FOR BUSINESS LICENSE APPLICATION FOR SHARIA INSURANCE COMPANIES OR SHARIA REINSURANCE COMPANIES

SELF-ASSESSMENT FORM
BUSINESS LICENSE APPLICATION
SHARIA INSURANCE COMPANY
OR SHARIA REINSURANCE COMPANY

Company Name :
Application letter number for business license :
Date of application letter for business license :
Contact person
(name, phone, email) :
Brief description of the background of the business license application :
Company description :
(describe company history)
[............]
No. Name of Shareholder
Nominal
(Rp)
(%)
Controlling/Non-Controlling
Total

Chart of company group structure:
(up to the ultimate controller)
..........

Composition of directors, board of commissioners, Sharia supervisory board, experts, actuaries, and internal auditors of the company:
No. Position Name Brief Description
Responsibility
Information Regarding
Concurrent Positions
Nationality and
Domicile
Type of Certification
Risk Management Field (If
Any)
1 Chief Director
2 Director https://jdih.ojk.go.id/

Commissioners
Main
Independent Commissioners
Commissioners
Sharia Supervisory Board
Experts
(including experts per line of business, if any)
Company Actuary
Internal Auditor

NO. DESCRIPTION COMPLETENESS YES NO NOTES

Photocopy of the minutes of the General Meeting of Shareholders or equivalent approving the Sharia Unit separation work plan.
Meeting minutes No.:
[…………]
Date:
[…………]
Notary:
[...........]
Substance:
[…………]
Photocopy of the company establishment deed including photocopy of the deed of amendment to the Articles of Association (if any) accompanied by photocopy of proof of approval, and/or photocopy of proof of receipt of notification from the competent authority. The establishment deed contains information among others:
a. name and place of establishment; b. purpose and objectives as well as business activities;
c. capital;
d. ownership; and e. authority, responsibility, and term of office of the Board of Directors and Board of Commissioners members. Company establishment data:
Number and date of establishment deed:
[……]
Number and date of approval proof from competent authority:
[……]
Company name:
[……]
Place of establishment:
[……] https://jdih.ojk.go.id/

Purpose and objectives as well as business activities:
[……]
Paid-up capital amount:
[.……]
Purpose and objectives as well as business activities:
[.……]
Ownership data:
[……]
Authority, responsibility, and term of office of Board of Directors and Board of Commissioners members:
[……]
Data on all amendments to the company's Articles of Association (if any):
1. Number and date of deed:
  [……]
  Number and date of approval proof and/or receipt of notification from competent authority:
  [……]
  Substance of amendment to Articles of Association:
  [……]
  Etc. https://jdih.ojk.go.id/
Organizational Structure
Organizational structure clearly depicting:
a. separation of risk management functions, financial management functions, and service functions; b. existence of work units handling the following functions:
1. underwriting;
2. actuarial;
3. claim administration settlement;
4. marketing;
5. finance including investment management;
6. risk management;
7. internal audit;
8. administration and accounting;
9. compliance and fraud control;
10. implementation of anti-money laundering, counter-terrorism financing, counter-proliferation financing of weapons of mass destruction, and other financial crime programs;
11. financial literacy and inclusion; and
12. service and complaint resolution.
  Proven by attaching an organizational structure chart containing all these functions.
Document containing the description of duties, authority, responsibility, and written work procedures, established by the Board of Directors.
Proven by attaching Standard Operating Procedure (SOP):
SOP Number:
[ ....... ]
SOP Title:
[....... ]
Effective date of SOP implementation:
[ ............... ]
Signed by:
[ ....... ]
Etc. https://jdih.ojk.go.id/

Guarantee Fund
Initial guarantee fund report. The guarantee fund is at least in accordance with the requirements in the Financial Services Authority Regulation regarding business licensing and institutionalization of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies.
Proof of placement of guarantee funds, in the form of:
a. guarantee fund of at least 20% (twenty percent) of the minimum paid-up capital; Guarantee fund amount is Rp [. ...................] b. photocopy of time deposit certificates with automatic renewal at a Sharia commercial bank, or the Sharia business unit of a commercial bank in Indonesia that is not affiliated with the relevant Sharia Insurance Company or Sharia Reinsurance Company;
1. Name of Sharia bank:
  [..................]
2. Certificate No.:
  [. ...............]
3. Guarantee fund nominal:
  [. ...............]
  c. photocopy of securities and/or Sharia securities issued by the Government of the Republic of Indonesia, which have a remaining maturity of at least 1 (one) year on the date of the business license application; and
  d. agreement regarding the management of guarantee funds with a custodian bank registered with the Financial Services Authority. Custodian bank name [. ...................] Number and date of agreement [. ...................] https://jdih.ojk.go.id/
Ownership List
List of shareholders along with details of each share ownership and the entire related business group structure of the Sharia Insurance Company or Sharia Reinsurance Company and the legal entity owner of the Sharia Insurance Company or Sharia Reinsurance Company up to the ultimate owner, for companies in the form of limited liability companies.
(explained in the form of a chart and description) Ultimate owner:
1. [....... ]
  by […]%
  Planned share ownership list after portfolio transfer.
In the event that the shareholder is a Controlling Shareholder Candidate (CSP), documents in accordance with Financial Services Authority regulations regarding the fit and proper test for candidate principal parties of the company.

Data on Shareholders Other than Controlling Shareholders
In the event that the shareholder other than CSP is an individual.
Planned share ownership list after portfolio transfer. a. photocopy of identification in the form of an ID card or passport that is still valid; Name:
[.........]
ID card/Passport No.:
[.........] https://jdih.ojk.go.id/

Identity validity period:
[.........]
Etc. b. photocopy of taxpayer identification number; Name:
[.........]
Taxpayer Identification Number:
[.........]
Etc.
c. copy of annual tax return (SPT) for the last 2 (two) years before the capital injection and other documents showing the financial capacity and source of funds of the individual shareholder candidate;
Photocopy of SPT for Mr./Ms. [......]
SPT Period: year
[. ...................]
Taxable income:
Rp [........]
Asset list: [........]
Total assets:
Rp [ ...............]
Liability list:
[. ...................]
Total liabilities:
Rp [. ..............] d. curriculum vitae completed with the latest 4x6 cm color passport photo; and Attached curriculum vitae and passport photo for:
Mr./Ms.
[.........]
Etc. e. declaration letter from the concerned party stating:
1. the source of funds used for capital injection does not come from loans;
2. the source of funds used for capital injection does not come from money laundering, terrorism financing,
  Declaration letter signed by the shareholder as follows:
1. Mr./Ms.
  [.........]
2. Etc.
  Completed with the relevant signature on https://jdih.ojk.go.id/
- proliferation financing of weapons of mass destruction, and other financial crimes;
1. does not have non-performing loans and/or financing;
2. is not included as a party prohibited from becoming a shareholder or a party that manages, supervises, and/or has significant influence on financial service institutions;
3. has never been convicted of criminal offenses in the field of financial service business and/or economy based on a court decision that has acquired permanent legal force within the last 5 (five) years;
4. has never been convicted of criminal offenses based on a court decision that has acquired permanent legal force within the last 5 (five) years;
5. has never been declared bankrupt or guilty causing a company to be declared bankrupt based on a court decision that has acquired permanent legal force within the last 5 (five) years; and
6. has never been a CSP, member of the Board of Directors, member of the Board of Commissioners, Controller, or member of the Sharia Supervisory Board at a financial service company whose business license was revoked due to violations in the last 5 (five) years.
  above the stamp. https://jdih.ojk.go.id/
In the event that the shareholder other than CSP is a legal entity:
Planned share ownership list after portfolio transfer. a. photocopy of the legal entity establishment deed including the Articles of Association and its amendments (if any), accompanied by photocopy of approval proof, photocopy of approval proof, and/or photocopy of proof of receipt of notification from the competent authority; Deed No.: [......] Date: [. .....] Notary: [. ......] Substance:
[. ...................]
Number of approval from the Ministry of Law and Human Rights:
[. ...................]
Date: [. .....]
Data on all amendments to the company's Articles of Association (if any):
1. Number and date of deed:
  […….]
  Number and date of approval proof and/or receipt of notification from competent authority:
  […….] https://jdih.ojk.go.id/
Substance of amendment to Articles of Association:
[…….]
2. Etc.
b. financial reports audited by a public accountant, completed with non-consolidated financial reports and the latest monthly financial reports; Shareholder financial report [. ...................] Attached:
1. Audited financial report for period
  […….]
2. Non-consolidated financial report for period […]
3. Latest monthly financial report for period […]
  c. Copy of the legal entity taxpayer identification number;
4. Name:
  [.........]
  Taxpayer Identification Number:
  [.........]
5. Etc.
  d. documents of the directors of the relevant company:
  1. photocopy of identification in the form of an ID card or passport that is still valid;
    Photocopy of Board of Directors member identity:
  1. Name:
    [.........]
    Position:
    [.........]
    ID card/Passport No.:
    [.........]
    Identity validity period:
    [.........] https://jdih.ojk.go.id/
  2. Etc.
  1. photocopy of taxpayer identification number;
    Photocopy of Board of Directors member taxpayer identification number:
  1. Name:
    [.........]
    Taxpayer Identification Number:
    [...........]
  2. Etc.
  1. curriculum vitae completed with the latest 4x6 cm color passport photo; and
    Curriculum vitae and passport photo for:
  1. Mr./Ms.
    [.........]
  2. Etc.
  1. declaration letter from the directors of the relevant legal entity stating that:
    a) the source of funds used for capital injection does not come from loans; b) the source of funds used for capital injection does not come from money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes; c) does not have Declaration letter signed by the directors as follows:
  1. Mr./Ms. [……]
  2. Etc.
    Completed with the relevant signature on above the stamp. https://jdih.ojk.go.id/
  non-performing loans and/or financing; d) is not included as a party prohibited from becoming a shareholder or a party that manages, supervises, and/or has significant influence on financial service institutions; e) has never been convicted of criminal offenses in the field of financial service business and/or economy based on a court decision that has acquired permanent legal force within the last 5 (five) years; f) has never been declared bankrupt or declared guilty causing a company to be declared bankrupt based on a court decision that has acquired permanent legal force within the last 5 (five) years; and g) has never been a CSP at a financial service company whose business license was revoked due to violations in the last 5 (five) years. https://jdih.ojk.go.id/
e. rating results from an internationally recognized rating agency, for shareholder candidates in the form of foreign legal entities. Entity rated:
[. ...................]
Rating Agency:
[. ...................]
Rating: […]
Other material information (if any):
[.........]
In the event that the shareholder is the Republic of Indonesia, attach a photocopy of the government regulation regarding the Republic of Indonesia's state capital injection for the establishment of the company.
Government Regulation No.:
[.........]
Date: [.........]
Nominal: [.........]
In the event that the shareholder is a regional government, attach a photocopy of the regional regulation regarding regional capital injection for the establishment of the company.
Regional Regulation No.: [. ......]
Date: [. .....]
Nominal: [......]

Controllers

List of Controllers along with descriptions regarding the form of control.
Controller Name:
[. ...................]
Number and date of Decision Letter of the Board of Commissioners of the Financial Services Authority regarding Controller Determination:
Number […..] date [..... ]
Rights and authority:
[................. ]
Description regarding form of control:
[................. ]

Sharia Supervisory Board

Proof that the Sharia Supervisory Board does not violate conflict of interest regulations at financial service institutions, in the form of a statement from the Sharia Supervisory Board that they do not hold concurrent positions at more than 5 (five) financial service institutions.
Information regarding the Sharia Supervisory Board is the same person as the Sharia Supervisory Board at the Sharia Unit
Photocopy of the minutes of the General Meeting of Shareholders or equivalent regarding the appointment of Sharia Supervisory Board members.
Proof of approval from the institution having authority in the determination of fatwas in the Sharia field regarding the appointment of Sharia Supervisory Board members.
Proof of approval by the Sharia Supervisory Board for Sharia Insurance products to be marketed, which at least includes:
a. basis for contribution rate calculation, contribution reserves, and asset share or profit testing, for Sharia Life Insurance Companies; b. basis for contribution rate calculation, contribution reserves, and underwriting projections, for Sharia General Insurance Companies;
c. marketing methods;
d. automatic reinsurance support plan for Sharia Insurance Companies and retrocession support plan for Sharia Reinsurance Companies; and e. sample policies, insurance application forms (SPPA), and brochures. https://jdih.ojk.go.id/
Proof of fulfillment of fit and proper test requirements for Sharia Supervisory Board members.
Copy of the decision resulting from the fit and proper test of Sharia Supervisory Board members, in the event that the Sharia Supervisory Board members are the same as those from the Sharia Unit and are reappointed as members of the Sharia Supervisory Board of the Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of the Sharia Unit.

Experts

Proof of employing experts.
The Company submits proof of employing experts in accordance with the line of business conducted, considering the type and line of business conducted, business complexity, and statutory regulations. . Proof that experts have met the following requirements:
a. have the highest level Sharia life insurance expertise certificate from the Professional Certification Body in the insurance field, for experts of Sharia Life Insurance Companies; b. have the highest level Sharia general insurance expertise certificate from the Professional Certification Body in the insurance field, for experts of Sharia General Insurance Companies;
c. have work experience in risk management for at least 3 (three) years; and
d. are not currently subject to sanctions from their professional association.
1. Name:
  [............
  ]
  Certificate No.:
  [............
  ]
  Date:
  [............
  ]
  Certificate issuer name:
  [..............
  ]
  Work experience:
  [. ............
  ]
  Letter of statement No. from association:
  [. ............
  ]
  Date:
  [..............
  ]
2. Etc.
  . Supporting proof that employed experts have expertise in Sharia Insurance and/or Sharia economics.
  . Business plan for the first 3 (three) years at least containing:
  a. vision, mission, and business strategy of the Sharia Insurance Company and Sharia Reinsurance Company; b. policies and management plans, including:
  1. business activity plan;
  2. plan for development or expansion of business activities;
  3. investment plan;
  4. capital plan;
    Explanation in the form of description of each point:
    a. [............
    ]
    b. [............
    ]
    c. [............
    ]
    d. [............
    ]
    e. [............
    ] https://jdih.ojk.go.id/
  5. financing plan;
  6. plan for development and/or change of office network or distribution channels;
  7. plan for organizational, human resource, and/or information technology development; and
  8. activities plan to improve financial literacy and inclusion;
    c. Financial report projections along with assumptions used;
    d. Projections of ratios and certain items; and e. Other information.

Risk Management Guidelines

Photocopy of the company's risk management guidelines.
Proven by risk management guidelines.
Guideline Number:
[................. ]
Effective date of guideline:
[................. ]
Signed by: [….....]

Insurance Products

List of Sharia insurance products to continue marketing, including:
a. insurance product name; b. number and date of approval letter, recording, or proof of report for the insurance product;
c. insurance product marketing method;
d. summary of insurance product benefits;
Insurance product name:
[................. ]
Approval Letter No.
[................. ]
Approval Date
[................. ] https://jdih.ojk.go.id/

e. declaration letter from the Board of Directors of the Insurance Company or Reinsurance Company conducting the Separation of the Sharia Unit and the Board of Directors of the Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of the Sharia Unit; f. declaration letter from the actuary of the Insurance Company or Reinsurance Company conducting the Separation of the Sharia Unit and the actuary of the Sharia Insurance Company or Sharia Reinsurance Company resulting from the Separation of the Sharia Unit; and g. opinion of the Sharia Supervisory Board. Marketing method of product [................. ] Summary of product benefits [................. ] Declaration letter from company directors, company actuaries and opinion of the Sharia Supervisory Board stating that:
1. the Sharia
  insurance products to be continued marketing by the Sharia Insurance Company as attached are the same Sharia insurance products as those marketed by the Sharia Unit and have been approved by the Financial Services Authority or reported to the Financial Services Authority without changing the specifications of the Sharia insurance products, including:
  a. risks covered including exclusions; b. formulation of contributions;
  c. risk
  categories; d. assumptions for contribution formation; and/or e. method for calculating cash value; and
2. the Sharia
  insurance products are in accordance with Sharia principles that have received opinions and approval from the Sharia Supervisory Board.
List of Sharia insurance products from the Sharia Unit whose marketing is discontinued, including:
a. insurance product name; and b. number and date of approval letter or recording or proof of report for the insurance product.
1. Insurance product name:
  [..........]
  Approval Letter No.
  [..........]
  Approval Date
  [..........]
2. Etc.
  https://jdih.ojk.go.id/

Agreements with Other Parties

Photocopy of agreements with other parties and policies on the transfer of some functions in the conduct of business (if any).
Name of party:
[................. ]
Function transferred:
[………..]

Systems Used by the Company

Administrative system and data management infrastructure supporting the preparation and submission of reports to the Financial Services Authority.
Software:
[................. ]
Hardware:
[................. ]
Applications used by the company: […..]
Data processing system that can generate accurate and accountable information in decision-making.
Data processing system consists of:
1. spreadsheet program;
2. application-based information system;
  and/or
3. web-based information system.
  Applications used by the company:
  […..]

In the Event of Direct Participation from Foreign Parties

Confirmation from the supervisory authority in the country of origin of the foreign party.
Country name:
[................. ]
Authority name:
[................. ]
Letter number:
[................. ]
Date:
https://jdih.ojk.go.id/

[................. ]
Substance of confirmation:
[…….]
Proof of payment of licensing fees.
Financial Services Authority Information Receipt System (SIPO) Number:
[. ................ ]
Date of payment:
[. ................ ]
Amount paid:
[. ................ ]

Other Supporting Documents

Copy of proof of payment of paid-up capital in the form of:
a. cash deposit proof from shareholders; b. statement of account of the Sharia Insurance Company or Sharia Reinsurance Company from the date of capital injection from shareholders until the date of the business license application; and
c. copy of proof of placement of minimum paid-up capital in the form of time deposits and/or checking accounts in the name of the relevant Sharia Insurance Company or Sharia Reinsurance Company at one of the commercial banks or Sharia commercial banks in Indonesia, legalized by the receiving bank that is still valid during the business license application process.
Source of funds used for capital injection explaining the entire flow of funds from the source of initial assets of shareholders up to the funds in question is recorded as capital injection.
Photocopy of the initial/closing financial position report of the company.
https://jdih.ojk.go.id/
Proof of operational readiness. Inventory list:
1. [. .......... ]
2. Etc.
  Office Domicile
  Certificate Letter:
  Number: [. .... ]
  Date: [. .. ]
  Address: [. ... ]
Proof of employing actuaries and internal auditors.
1. Actuary:
  Name:
  [............. ]
  Appointment Letter No.:
  [............. ]
  Date:
  [............. ]
2. Internal
  Auditor:
  Name:
  [............. ]
  Appointment Letter No.:
  [............. ]
  Date:
  [….]
Human resources plan including human resource development plan for at least the first 3 (three) years.
Photocopy of the guidelines for implementing anti-money laundering, counter-terrorism financing, counter-proliferation financing of weapons of mass destruction, and other financial crime programs at least covering:
a. active supervision by the Board of Directors and Board of Commissioners; b. policies and procedures; Guideline Number:
[. ................ ]
Effective date of guideline:
[. ................ ]
Signed by: [….] https://jdih.ojk.go.id/
- c. internal control;
  d. management information system; and e. human resources and training.

. Photocopy of good corporate governance guidelines, containing provisions as follows:
a. implementation of duties and responsibilities of the Board of Directors and Sharia Supervisory Board; b. implementation of duties of work units and committees carrying out internal control functions of the Sharia Insurance Company or Sharia Reinsurance Company;
c. implementation of compliance functions, internal auditors, and external auditors;
d. implementation of risk management, including internal control systems and implementation of information technology governance; e. implementation of remuneration policies; f. strategic plan of the Insurance Company; g. transparency of financial and non-financial conditions of the Sharia Insurance Company or Sharia Reinsurance Company. Guideline Number:
[. ................
]
Effective date of guideline:
[. ................
]
Signed by: [….]

. Photocopy of investment governance guidelines established by the Board of Directors, containing investment policies and strategies which at least include:
a. company asset and liability profile; b. matching between asset duration and liability duration of the company;
c. investment objectives;
d. target level of expected investment returns, including Proven by Guidelines and Investment Strategies Guideline No.:
[. ................
]
Effective date of
Guideline:
[. ................
]
Signed by:
https://jdih.ojk.go.id/

yield benchmark used; e. valuation basis and qualitative limits for each type of investment asset; f. maximum investment allocation limit for each type of investment asset; g. maximum limit on the proportion of the Company's wealth that can be placed with a single party; h. maximum limit on the amount of idle assets not placed in investment;
i. prohibited investment objects for investment placement;
j. minimum liquidity level of the company's investment portfolio to support fund availability for insurance benefit payments; k. supervision and reporting system for the implementation of investment management;
l. provisions regarding the use of investment managers, investment advisors, experts, and other service providers used in investment management;
m. provisions on the use of derivative instruments and other structured financial products for hedging purposes; n. restrictions on investment transaction authority for each management level and their accountability; and o. actions to be applied to the Board of Directors for violations of investment policy.
[. ................
]
Brief explanation of the guidelines:
[. ................
]
. Copy of the cooperation agreement between foreign legal entity shareholders with Indonesian shareholders, for companies that have participation from foreign legal entities within them, made in Indonesian language and at least containing:
a. capital composition and details of authority, which at least contains provisions regarding voting rights, profit and loss distribution, and appointment of members of the Board of Directors of the Sharia Insurance Company or Sharia Reinsurance Company; and b. obligations of foreign legal entity shareholders to prepare and implement education and training programs according to their field and training according to their field of expertise. Capital composition:
[. ................ ]
Obligations:
[.…….]
41. Automatic reinsurance support plan, for
Sharia Insurance Companies.
Letter number reinsurance support agreement:
[. ................ ]
Date: [. .. ]
Reinsurance Company: [….]
Type of reinsurance:
[. ................ ]
Line/Product: [….]
42. Retrocession support plan,
for Sharia Reinsurance Companies.
Letter number retrocession support agreement:
[. ................ ]
Date: [. .. ] https://jdih.ojk.go.id/

Company: [….]
Type of retrocession:
[. ................ ]
Line/Product: [….]
43. Document fulfilling the requirements of Sharia Company Equity
or Sharia Reinsurance Company.
Additional information (if necessary):
We, the undersigned, declare that:

The Self-Assessment Form above has been filled out according to
the actual situation and has been completed with the documents above; and
The documents submitted online are true and identical to the printed documents.
Jakarta, [… ]
Board of Directors […] signature
[Full Name]
Note:
How to fill in: click twice in the box, then select “Checked”. https://jdih.ojk.go.id/

Format 3
SELF-ASSESSMENT FORM FOR APPLICATION FOR
APPROVAL OF TRANSFER OF PORTFOLIO
OF PARTICIPATION IN SHARIA UNITS TO
SHARIA INSURANCE COMPANIES OR SHARIA
REINSURANCE COMPANIES
SELF-ASSESSMENT FORM
APPLICATION FOR APPROVAL
OF TRANSFER OF PORTFOLIO
OF PARTICIPATION IN SHARIA UNITS
TO SHARIA INSURANCE
COMPANIES OR SHARIA
REINSURANCE COMPANIES
Company name :
Letter number of application :
Date of application letter :
Contact person
(name, phone, email)
:
Brief description of the background of the transfer of the insurance portfolio :
NO DESCRIPTION
COMPLETENESS
YES NO NOTES

Financial position report
of the Sharia Unit that has been audited by a public accountant.
Financial report year:
[. ................ ]
Name of public accountant:
[......]
Letter of approval
for the transfer of portfolio of participation in the Sharia Unit from the Sharia Insurance Company/Sharia Reinsurance Company receiving the transfer. Form of letter approval of transfer:
[.........]
Date of letter approval of transfer:
[.........]
Regarding: [......] https://jdih.ojk.go.id/
Portfolio of participation
in the Sharia Unit to be transferred, including all assets, liabilities, and equity owned and managed by the Sharia Unit.
For the transfer of portfolio of participation through mechanism form 1.
Description regarding the total amount of assets, liabilities, and equity owned and managed by the Sharia Unit being transferred.
Portfolio of participation
in the Sharia Unit to be transferred, including:
For the transfer of portfolio of participation through mechanism form 2:
a. detailed number of participants to be transferred complete with the value for each participant; b. amount of tabarru’ funds transferred;
c. amount of participant
investment funds transferred; d. amount of company funds at least equal to the ujrah reserve at the time of transfer; e. amount of qardh required at the time of transfer; f. amount of tanahud funds transferred; and g. amount of ujrah transferred, based on agreement between the parties. a. tabarru’ funds; b. participant investment funds;
c. company funds
at least equal to the ujrah reserve at the time of transfer; d. qardh required at the time of transfer; e. tanahud funds for the Sharia Unit that has or has formed the tanahud fund; and f. ujrah for the receipt of management of the tabarru’ fund portfolio sourced from the company funds of the Sharia Unit being transferred, based on agreement between the parties.
Use of hibah deed in case there is still
a shortage (deficit) of tabarru’ funds https://jdih.ojk.go.id/

that must be covered by the Insurance Company and Reinsurance Company that carry out Sharia Unit Separation.
6. Copy of the minutes of the General Meeting
of Shareholders approving the separation of the Sharia Unit.
Deed No.: [.......]
Date: [. . ]
Notary: [. .. ]
Substance: [.......]
Number/letter approval from the Ministry of Law and Human Rights: [.......]
Date: [......]
7. Statement letter from the Board of Directors of the
Sharia Insurance Company or
Sharia Reinsurance Company resulting from Sharia Unit Separation regarding the adjustment of guarantee funds after the transfer of the portfolio. For Sharia Unit Separation through mechanism form 1. Additional information (if necessary):
We, the undersigned, declare that:

The self-assessment form above has been filled out according to
the actual situation and has been completed with the documents above; and
The documents submitted online are true and identical to the printed documents.
Jakarta, […]
Board of Directors […] signature
[Full Name]
Note:
How to fill in: click twice in the box, then select “Checked”. https://jdih.ojk.go.id/

FORMAT 4
SELF-ASSESSMENT FORM FOR REPORT ON THE IMPLEMENTATION OF THE TRANSFER OF PORTFOLIO OF PARTICIPATION IN THE SHARIA UNIT SELF-ASSESSMENT FORM REPORT ON THE IMPLEMENTATION OF THE TRANSFER OF PORTFOLIO OF PARTICIPATION IN THE SHARIA UNIT Company name :
Letter number of report :
Date of report letter :
Contact person
(name, phone, email)
:
Brief description of the background of the transfer of the portfolio of participation in the Sharia Unit :
NO DESCRIPTION
COMPLETENESS
YES NO NOTES

The transfer of the portfolio
of participation must meet the requirements:
Transfer of portfolio with mechanism form
1. a. does not reduce the rights of policyholders, or participants; b. identification regarding the transfer of portfolio of participation in the Sharia Unit to be transferred, including all assets, liabilities, and equity owned and managed by the Sharia Unit. Description regarding the total amount of assets, liabilities, and equity owned and managed by the Sharia Unit being transferred.
The transfer of portfolio
of participation must meet the requirements:
Transfer of portfolio with mechanism form https://jdih.ojk.go.id/

2. a. does not reduce the rights of policyholders, or participants; b. Identification regarding the transfer of assets, liabilities, and equity, including:
Transfer of portfolio of participation through mechanism form 2.
Describe regarding:
a. detailed number of participants to be transferred complete with the value for each participant; b. amount of tabarru’ funds transferred;
c. amount of participant
investment funds transferred; d. amount of company funds at least equal to the ujrah reserve at the time of transfer; e. amount of qardh required at the time of transfer; f. amount of tanahud funds transferred; and g. amount of ujrah transferred, based on agreement between the parties.
1) tabarru’ funds;
2) participant investment funds;
3) company funds
at least equal to the ujrah reserve at the time of transfer;
4) qardh required at
the time of transfer;
5) tanahud funds for
the Sharia Unit that has or has formed the tanahud fund; and
6) ujrah for
the receipt of management of the tabarru’ fund portfolio sourced from the company funds of the Sharia Unit being transferred, based on agreement between the parties.
c. is carried out at the
Sharia Insurance
Company or Sharia
Reinsurance Company that has the same business field; and Description of the name and identity of the Sharia Insurance Company or Sharia Reinsurance Company receiving the transfer. https://jdih.ojk.go.id/

d. does not cause the
Sharia Insurance
Company or Sharia Reinsurance Company receiving the transfer of portfolio of participation to violate the regulations in force in the field of insurance. Description of the condition of the Sharia Insurance Company or Sharia Reinsurance Company after receiving the transfer of portfolio, among others:
1. Equity;
2. Risk Based Capital; and
3. Investment Sufficiency Ratio.
3. Proof of completion
of the transfer of portfolio of participation in the Sharia Unit.
Attach proof of completion of the transfer of portfolio of participation in the Sharia Unit.
4. Statement letter from the
Board of Directors of the Insurance Company or Reinsurance Company that the steps for completing the entire portfolio of participation in the Sharia Unit have been carried out in accordance with the provisions of legislation and if there are claims in the future they become the responsibility of the Insurance Company or Reinsurance Company. Attach the statement letter.
5. Proof of written notification to
each policyholder, insured, participant, or ceding company at the latest 20 (twenty) working days after the date of the letter of approval from the Financial Services Authority regarding the transfer of portfolio of participation in the Sharia Unit to the Sharia Insurance Company or Sharia Reinsurance Company. Attach proof of notification, can be a screenshot. https://jdih.ojk.go.id/

6. Proof of announcement
of the transfer of portfolio of participation in the Sharia Unit in:
a. Indonesian language mass media in electronic and/or print that circulate nationally; and b. the website of the Insurance Company or Reinsurance Company or the Sharia Unit; at the latest 20 (twenty) working days after the date of the letter of approval from the Financial Services Authority regarding the transfer of portfolio of participation in the Sharia Unit to the Sharia Insurance Company or Sharia Reinsurance Company. Attach proof of announcement, can be a screenshot of the announcement on the website or a newspaper clipping.
7. Proof of notification
and announcement as referred to in items
5 and 6, including:
a. the time period given to policyholders, participants in the ceding company, or related parties to submit objections to the transfer of portfolio; b. consequences arising from the rejection of the transfer of portfolio; and
c. mechanism
for settling the rights of policyholders, insured, participants, or ceding companies that reject the transfer of portfolio.
8. Original copy of the letter
of license decision for the establishment of the Sharia Unit of the Insurance Company or Reinsurance Company issued by the Financial Services Authority. Attach a copy of the letter of license decision for the establishment of the Sharia Unit of the Insurance Company or Reinsurance Company. Additional information (if necessary):
We, the undersigned, declare that:
1. The self-assessment form above has been filled out according to
the actual situation and has been completed with the documents above; and
2. The documents submitted online are true and identical to the printed documents.
Jakarta, [… ]
Board of Directors […] signature
[Full Name]
Note:
How to fill in: click twice in the box, then https://jdih.ojk.go.id/

FORMAT 5
SELF-ASSESSMENT FORM FOR REPORT ON THE RECEIPT OF THE TRANSFER OF PORTFOLIO OF PARTICIPATION IN THE SHARIA UNIT SELF-ASSESSMENT FORM REPORT ON THE RECEIPT OF THE TRANSFER OF PORTFOLIO OF PARTICIPATION IN THE SHARIA UNIT Company Name :
Letter number and date of report
:
Contact person
(name, phone, email)
:
Brief description of the background of the transfer of the insurance portfolio :
Company description :
NO. DESCRIPTION
COMPLETENESS
YES NO NOTES
1. Report on the receipt
of the transfer of portfolio of participation in the Sharia Unit submitted by the Board of Directors of the Sharia Insurance Company or Sharia Reinsurance Company to the Financial Services Authority.
2. Identification of the
portfolio of participation received, including all assets, liabilities, and equity owned and managed by the Sharia Unit.
Transfer of portfolio with mechanism form 1.
Description regarding the total amount of assets, liabilities, and equity owned and managed by the Sharia Unit received.
3. Identification regarding
the transfer of assets, liabilities, and equity, including:
Transfer of portfolio of participation through mechanism form 2.
Describe regarding:
a. detailed number of participants received complete with the value for each participant; b. amount of tabarru’ funds received;
c. amount of participant
investment funds received; d. amount of company funds at least equal to the ujrah reserve at the time of the transfer of portfolio received; e. amount of qardh at the time of the transfer of portfolio received; f. amount of tanahud funds received; and g. amount of ujrah received, based on agreement between the parties. a. tabarru’ funds; b. participant investment funds;
c. company funds
at least equal to the ujrah reserve at the time of transfer; d. qardh required at the time of transfer; e. tanahud funds for the Sharia Unit that has or has formed the tanahud fund; and f. ujrah for the receipt of management of the tabarru’ fund portfolio sourced from the company funds of the Sharia Unit being transferred, based on agreement between the parties.
4. Detailed list
of participation in Sharia Insurance or Sharia Reinsurance received from the Sharia Unit of the Insurance Company or Reinsurance Company. https://jdih.ojk.go.id/

5. The receipt
of the transfer of portfolio of participation has met the requirements:
a. does not reduce the rights of policyholders, or participants; b. does not cause the Sharia Insurance Company or Sharia Reinsurance Company receiving the transfer of the Sharia Unit to violate the regulations in force in the field of insurance. Transfer of portfolio of participation through mechanism form 2. Describe the condition of the Sharia Insurance Company or Sharia Reinsurance Company after receiving the transfer of portfolio, among others:
1. Equity;
2. Risk Based Capital;
and
3. Investment Sufficiency Ratio.
6. Financial report
of the Sharia Insurance Company and
Sharia Reinsurance Company after receiving the portfolio of participation.
7. Proof of adjustment
of the placement of guarantee funds.
Additional information (if necessary):
https://jdih.ojk.go.id/

We, the undersigned, declare that:

The self-assessment form above has been filled out according to
the actual situation and has been completed with the documents above; and
The documents submitted online are true and identical to the printed documents.
Jakarta, [… ]
Board of Directors […] signature
[Full Name]
Note:
How to fill in: click twice in the box, then https://jdih.ojk.go.id/

FORMAT 6
SELF-ASSESSMENT FORM FOR REPORT ON THE AMENDMENT OF THE ARTICLES OF ASSOCIATION DUE TO THE ADDITION OF PAID-UP CAPITAL SELF-ASSESSMENT FORM REPORT ON THE AMENDMENT OF THE ARTICLES OF ASSOCIATION DUE TO THE ADDITION OF PAID-UP CAPITAL Company Name :
Letter number of report :
Date of report letter:
Brief description of the background of the addition of paid-up capital :
Contact person
(name, phone, email)
:
NO. DESCRIPTION
COMPLETENESS
YES NO NOTES

Copy of the deed
of amendment of the articles of association accompanied by proof of the letter of receipt of notification from the competent authority for companies that are limited liability companies; Deed No.: [.......] Date: [.......] Notary: [.......] No. letter of receipt of notification: [........] Date: [.......] Substance: [.......]
Proof
of the addition of Paid-Up Capital sourced from the transfer of equity of company funds in the Sharia Unit; Proof in the form of a deed that states the addition of paid-up capital of the company resulting from the separation of the Sharia Unit sourced from the transfer of equity of company funds in the Sharia Unit, including the deed of separation, deed of transfer https://jdih.ojk.go.id/

of portfolio, and/or deed of transfer of assets, liabilities and equity of the Sharia Unit to the company resulting from the separation of the Sharia Unit.
3. Proof
of the addition of Paid-Up Capital in cash, namely:
a. copy of proof of capital deposit in one of the general banks, sharia general banks, or sharia business units of general banks in Indonesia and legalized by the bank receiving the deposit, in the case of the addition of Paid-Up Capital being done in the form of cash; or b. copy of proof of the placement of paid-up capital in the form of a company bank statement legalized by the bank; This proof is required in case there are capital deposits other than those sourced from the transfer of equity of the Sharia Unit to the company resulting from the separation of the Sharia Unit. Source of funds used for the addition of capital that explains the entire flow of funds from the source of initial assets of shareholders until the funds in question are recorded as capital deposits. Transaction Date:
[.........]
Depositing Bank:
[.......]
Name of Depositor:
[.......]
Receiving Bank:
[.......]
Name of Recipient:
[.........]
Amount of capital deposit (original currency):
[.........]
Amount of capital deposit:
Rp [.......] https://jdih.ojk.go.id/

Letter
of declaration on stamped paper from shareholders who declare that:
a. the source of funds for the capital participation does not come from money laundering, terrorism financing, financing for the proliferation of weapons of mass destruction and other financial crimes; and b. the source of funds for the capital participation does not come from loans; This declaration letter is required for capital deposits other than those sourced from the transfer of equity of the Sharia Unit to the company resulting from the separation of the Sharia Unit. Declaration letter signed by shareholders as follows:
Mr./Ms. [........]
PT [........]
List
of capital composition before the change and after the change; and
List
of adjustment of share ownership containing the name of shareholders and the total value of shares before the change and after the change. https://jdih.ojk.go.id/

Additional information (if necessary):
We, the undersigned, declare that:

The self-assessment form above has been filled out according to
the actual situation and has been completed with the documents above; and
The documents submitted online are true and identical to the printed documents.
Jakarta, [… ]
Board of Directors […] signature
[Full Name]
Note:
How to fill in: click twice in the box, then https://jdih.ojk.go.id/

FORMAT 7
SELF-ASSESSMENT FORM FOR REPORT
ON THE IMPLEMENTATION OF THE CESSATION OF BUSINESS ACTIVITIES OF THE SHARIA UNIT SELF-ASSESSMENT FORM REPORT ON THE IMPLEMENTATION OF THE CESSATION OF BUSINESS ACTIVITIES OF THE SHARIA UNIT Company name :
Letter number of report :
Date of report letter :
Contact person
(name, phone, email)
:
DESCRIPTION
COMPLETENESS
YES NO NOTES
Report that has been signed by the Board of Directors of the Insurance Company and Reinsurance Company, and contains:
1. Implementation
of the cessation of all business activities of the Sharia Unit; Circular letter/directors' decision No. [. .. ] Date [.... ] Regarding [...]
2. Implementation
of the settlement of rights and obligations of policyholders or participants of the Sharia Unit, settlement of all obligations of the Sharia Unit at the latest 6 (six) months after the date of the letter of approval from the Financial Services Authority regarding the transfer of portfolio of participation in the Sharia Unit;
3. Final balance sheet of the Sharia
Unit that has been audited by a public accountant and the balance sheet of the company receiving the transfer; and
1. Name of public accountant
[........]
2. Annual Balance Sheet:
[.......]
3. Audit Report Opinion:
[.......]
4. Attachment of the final balance sheet
of the Sharia Unit that has been audited
4. Statement letter from the Board of Directors or
equivalent of the Insurance Company or
Reinsurance Company that states that all obligations of the Sharia Unit have been settled and if there are claims in the future they become the responsibility of the Insurance Company or Reinsurance Company. Date of directors' statement letter: [...] Additional information (if necessary):
We, the undersigned, declare that:
1. The self-assessment form above has been filled out according to
the actual situation and has been completed with the documents above; and
2. The documents submitted online are true and identical to the printed documents.
Jakarta, [… ]
Board of Directors […] signature
[Full Name]
Note:
How to fill in: click twice in the box, then https://jdih.ojk.go.id/

FORMAT 8
SELF-ASSESSMENT FORM FOR APPLICATION FOR THE CLOSURE OF THE SHARIA UNIT SELF-ASSESSMENT FORM APPLICATION FOR THE CLOSURE OF THE SHARIA UNIT Company name :
Letter number and date of application
:
Contact person
(name, phone, email)
:
Number of Financial Services Authority Decision regarding the granting of license for the establishment of the Sharia Unit :
Closure of the Sharia Unit in the event of:
DESCRIPTION
COMPLETENESS
YES NO NOTES
Application submitted to the
Financial Services Authority and has been signed by the Board of Directors and contains:

reasons or background
for the closure of the Sharia Unit; and
proof of transfer of portfolio
and settlement of rights of participants who are not willing to be transferred Additional information (if necessary):
https://jdih.ojk.go.id/

We, the undersigned, declare that:

The self-assessment form above has been filled out according to
the actual situation and has been completed with the documents above; and
The documents submitted online are true and identical to the printed documents.
Jakarta, [… ]
Board of Directors […] signature
[Full Name]
Note:
How to fill in: click twice in the box, then select “Checked”. https://jdih.ojk.go.id/

FORMAT 9
STAGES OF SHARIA UNIT SEPARATION

FORM 1 (ESTABLISHING A NEW SHARIA INSURANCE COMPANY OR SHARIA REINSURANCE COMPANY RESULTING FROM THE SEPARATION OF THE SHARIA UNIT, FOLLOWED BY THE TRANSFER OF PARTICIPATION PORTFOLIO TO THE NEW SHARIA INSURANCE COMPANY OR SHARIA REINSURANCE COMPANY RESULTING FROM THE SEPARATION OF THE SHARIA UNIT):

Activity Description	Output	Implementation Time
:---	:---	:---	\
Spin-Off Preparation Stage
1. Formation of a Special Team (Project Management Officer) for Spin-Off Implementation	Board of Directors Decree
2. Analysis of Financial, Human Resources, Business/Operational, and Legal Aspects	Sharia Unit Separation Work Plan (RKPUS)
3. Identification and Verification of Assets and Liabilities to be Transferred	RKPUS
4. Updating Sharia Unit Participation	RKPUS
5. Preparation, Submission, Approval, Notification, and Announcement of the Sharia Unit Separation Work Plan	Approved RKPUS to the Financial Services Authority (OJK).
Legal Entity Establishment Stage (Not Required if Spin-Off involves Portfolio Transfer)
1. Preparation of legal documents for entity establishment	Company Establishment Documents
2. Preparation of the company's strategic plan	Report or business plan
3. Preparation of Company Standard Operating Procedures (SOP)	SOP Concept
4. Submission of Company Establishment to the Ministry of Law and Human Rights, including legal entity ratification	Decree from the Ministry of Law and Human Rights
5. Determination of company organs and organizational completeness	Deed from the General Meeting of Shareholders, circular decisions of shareholders, or equivalent
Business License Application or Spin-Off Approval Stage
1. Request for recommendation from the institution having authority in setting fatwas in the Sharia field	Recommendation from the institution having authority in setting fatwas in the Sharia field
2. Submission of license application accompanied by documents:
a. Business license application; b. Application for assessment of competence and propriety for the main prospective party of the Sharia Insurance Company and Sharia Reinsurance Company resulting from Sharia Unit Separation;
c. Reporting of Sharia insurance products;
d. Application for approval of cooperation in one ownership; e. Notification of Sharia Unit separation; f. Announcement of Sharia Unit separation; and g. Submission of report on business activity implementation	Documents meeting Requirements Notification Letter Proof Announcement Proof in Newspaper Report Letter to the Financial Services Authority (OJK) no later than 10 (ten) working days from the date business activities commence.
Portfolio Transfer Stage
---	---
1. Submission of portfolio transfer approval request	Submission of application and portfolio transfer approval letter
2. Notification and announcement of the portfolio transfer plan for participation in the Sharia Unit	Proof of notification and announcement
3. Implementation of portfolio transfer	Minutes of Portfolio Transfer Completion
4. Submission of report on receipt of participation portfolio transfer	Reporting to the Financial Services Authority (OJK)
5. Submission of report on completion of portfolio transfer	Reporting to the Financial Services Authority (OJK)
Application for Reporting Amendments to the Articles of Association regarding Paid-in Capital Increase Stage
Submission of report on paid-in capital increase	Reporting of paid-in capital increase to the Financial Services Authority (OJK)
Sharia Unit Closure and Revocation of Sharia Unit Establishment License Stage
Submission of report on implementation of cessation of Sharia Unit business activities	Reporting to the Financial Services Authority (OJK)
Submission of application for closure of Sharia Unit	Reporting of Sharia Unit closure and Letter of Revocation of Sharia Unit Establishment License from the Financial Services Authority (OJK)

FORM 2 (TRANSFERRING THE PARTICIPATION PORTFOLIO OF THE SHARIA UNIT TO A SHARIA INSURANCE COMPANY OR SHARIA REINSURANCE COMPANY THAT HAS ALREADY OBTAINED A BUSINESS LICENSE):

Activity Description	Output	Implementation Time
Spin-Off Preparation Stage
1. Formation of a Special Team (Project Management Officer) for Spin-Off Implementation	Board of Directors Decree
2. Analysis of Financial, Human Resources, Business/Operational, and Legal Aspects	Sharia Unit Separation Work Plan (RKPUS)
3. Identification and Verification of Assets and Liabilities to be Transferred	RKPUS
4. Updating Sharia Unit Participation	RKPUS
5. Preparation, Submission, Approval, Notification, and Announcement of the Sharia Unit Separation Work Plan	Approved RKPUS to the Financial Services Authority (OJK).
Portfolio Transfer Stage
1. Submission of portfolio transfer approval request	Submission of approval request
2. Notification and announcement of the portfolio transfer plan for participation in the Sharia Unit	Proof of notification and announcement
3. Implementation of portfolio transfer	Minutes of Portfolio Transfer Completion
4. Submission of report on receipt of participation portfolio transfer	Report Letter to the Financial Services Authority (OJK)
5. Submission of report on completion of portfolio transfer	Report Letter to the Financial Services Authority (OJK)
Sharia Unit Closure and Revocation of Sharia Unit Establishment License Stage
Submission of report on implementation of cessation of Sharia Unit business activities	Reporting to the Financial Services Authority (OJK)
Submission of application for closure of Sharia Unit	Reporting of Sharia Unit closure and Letter of Revocation of Sharia Unit Establishment License from the Financial Services Authority (OJK)

FORMAT 10
SELF-ASSESSMENT FORM FOR APPLICATION FOR APPROVAL OF INVESTMENT PLACEMENT IN THE FORM OF DIRECT PARTICIPATION AND/OR INVESTMENT PLACEMENT IN RELATED PARTIES EXCEEDING LIMITS

SELF-ASSESSMENT FORM
APPLICATION FOR APPROVAL OF INVESTMENT PLACEMENT IN THE FORM OF DIRECT PARTICIPATION AND/OR INVESTMENT PLACEMENT IN RELATED PARTIES EXCEEDING LIMITS

Company Name :
Letter Number of Request :
Date of Request Letter :
Contact Person
(name, phone, email)
:
Brief description of the background of the request for approval of investment placement in the form of direct participation and/or investment placement in related parties exceeding limits :

Details of Direct Participation Investment

No	Description	Amount
1.	Amount of investment of the Insurance Company and Reinsurance Company conducting Sharia Unit Separation
2.	Maximum Limit of Direct Participation for the Insurance Company and Reinsurance Company conducting Sharia Unit Separation
3.	Direct Participation in Child Companies (Sharia Insurance Company and Sharia Reinsurance Company resulting from Sharia Unit Separation/Sharia Insurance Company and Sharia Reinsurance Company Recipient)
4.	Investment Excess

Details of Related Party Investment

No	Name of Party	Type of Investment	Investment Balance (Rupiah)	Investment Balance (%)
1.	Total amount of investment placement by the company in related parties on assets other than sub-funds
2.	Sum of company equity + subordinated loans
3.	Total % of related party investment against the sum of equity and subordinated loans
4.	Total % of investment in related parties if approval has been obtained from the Financial Services Authority (OJK) to exclude investment in child companies and financial service institutions supervised by the Financial Services Authority (Sharia Insurance Company and Sharia Reinsurance Company resulting from Sharia Unit Separation/Sharia Insurance Company and Sharia Reinsurance Company Recipient)

NO	DESCRIPTION OF COMPLETENESS	YES
1.	Background of the company conducting direct participation and placement in related parties	Contains background and feasibility study of direct participation and placement in related parties.
2.	Supporting investment details
3.	Capital adequacy before and after investment placement
4.	Risk profile analysis results before and after investment placement
5.	Funding sources for investment
6.	Standard operating procedures regarding investment placement
7.	Latest audited financial statements and 3 (three) year forward financial projections
8.	Ownership structure

This copy is consistent with the original
Director of Legal Development
Legal Department
Aat Windradi

Additional notes (if necessary):
We, the undersigned, declare that:

The aforementioned self-assessment form has been filled out in accordance with the actual situation and has been completed with the documents above; and
The documents submitted online are true and identical to the printed documents.

Jakarta, [… ]
Board of Directors […] signature
[Full Name]

Note:
How to fill in: click twice in the box, then

Determined in Jakarta on 27 September 2024
EXECUTIVE HEAD OF INSURANCE, GUARANTEE, AND PENSION FUND SUPERVISOR FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, OGI PRASTOMIYONO

s.d. s.d.

Lineage: No known changes