Minimum Capital Provision Requirements and Minimum Core Capital Fulfillment for People's Economic Banks

To:
The Board of Directors of People's Economic Banks at your address.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 2/SEOJK.03/2025

CONCERNING

MINIMUM CAPITAL PROVISION REQUIREMENTS AND MINIMUM CORE CAPITAL FULFILLMENT FOR PEOPLE'S ECONOMIC BANKS

In connection with the Financial Services Authority Regulation Number 5/POJK.03/2015 concerning Minimum Capital Provision Requirements and Minimum Core Capital Fulfillment for People's Credit Banks (State Gazette of the Republic of Indonesia Year 2015 Number 73, Additional State Gazette of the Republic of Indonesia Number 5686), hereinafter referred to as POJK KPMM BPR, and given the need to refine regulations including the allowance for BPRs to hold securities issued by Bank Indonesia, the Government, and Local Governments, as well as capital participation, consequences regarding collateral taken over and abandoned properties, the implementation of impairment loss reserves in accordance with financial accounting standards, and changes to the capital deposit mechanism, it is necessary to replace the implementation regulations of POJK KPMM BPR as regulated in the Financial Services Authority Circular Letter Number 8/SEOJK.03/2016 concerning Minimum Capital Provision Requirements and Minimum Core Capital Fulfillment for People's Credit Banks, as amended by the Financial Services Authority Circular Letter Number 24/SEOJK.03/2019 concerning Amendments to the Financial Services Authority Circular Letter Number 8/SEOJK.03/2016 concerning Minimum Capital Provision Requirements and Minimum Core Capital Fulfillment for People's Credit Banks, in the following Financial Services Authority Circular Letter:

I. GENERAL PROVISIONS

1. Capital is one of the important factors for BPRs in the context of business development and absorbing potential loss risks.

2. The minimum capital provision requirement for BPRs, hereinafter referred to as KPMM, is determined based on the risks contained in the assets of the financial position report. Technically, KPMM is measured based on a certain percentage of Risk-Weighted Assets (ATMR).

3. The assessment of KPMM fulfillment is based on a quantitative calculation of core capital and supplementary capital compared to the assessment of BPR assets weighted according to the risk level inherent in each asset position in accordance with regulations.

4. Core capital is a capital component with the strongest and most stable characteristics to absorb risks. BPRs must have strong capital to operate economically and meet minimum standards regarding organizational structure and adequate facilities and infrastructure so that they can develop optimally and improve services to the community while still based on prudential principles. Thus, BPRs are required to provide minimum core capital in accordance with POJK KPMM BPR.

5. Supplementary capital is a capital component that has capital characteristics so it can be categorized as one of the capital components, but does not have cash value or can be settled by meeting requirements and approvals in accordance with POJK KPMM BPR.

6. Considering that capital is an important factor for BPRs in the context of healthy business development and absorbing loss risks, BPRs must always monitor their capital conditions by calculating their own capital adequacy at least on a monthly basis using the minimum capital requirement calculation format as contained in Appendix I of this Financial Services Authority Circular Letter.

II. CAPITAL

1. Capital Components
   a. Capital consists of core capital and supplementary capital. b. Core Capital consists of:

1. Main Core Capital includes:
   a) paid-in capital; b) additional capital reserves:
   i. share premium;
   ii. capital deposit funds;
   iii. donation capital;
   iv. general reserves;
   v. purpose reserves;
   vi. prior years' profits;
   vii. current year profits; and
   viii. the difference between Impairment Loss Reserves (CKPN) and Asset Quality Provisioning (PPKA).
2. Additional Core Capital.
   c. Supplementary Capital consists of:
3. Capital components meeting specific requirements;
4. Surplus from the revaluation of fixed assets; and
5. General PPKA at most 1.25% (one point two five percent) of ATMR.

2. Capital Deposit Funds, Donation Capital in the Form of Other Assets, Additional Core Capital Components, and Supplementary Capital Components

a. Capital Deposit Funds

1. Capital Deposit Funds (DSM) are funds that have been deposited in reality for the purpose of increasing capital but are not yet supported by requirements to be classified as paid-in capital, such as a General Meeting of Shareholders (GMS) resolution or approval of the articles of association by the competent authority.
2. DSM is calculated as core capital if it has been recorded as Equity DSM.
3. DSM is placed in the form of deposits:
   a) at Commercial Banks in Indonesia by stating the name "Commissioners of the Financial Services Authority q.q. (name of BPR)" and stating the name of the additional capital depositor; and/or b) at the BPR concerned by stating the name "Commissioners of the Financial Services Authority q.q. (name of the shareholder depositor)", and stating that withdrawal can only be done after obtaining written approval from the Financial Services Authority.
4. Recognition of Equity DSM originating from:
   a) Capital deposits in the form of deposits at Commercial Banks for increasing paid-in capital that result in a change of Controlling Shareholders (PSP)
   i. The BPR initially records DSM in the form of deposits at Commercial Banks in the DSM Liability position.
   ii. After obtaining approval from the Financial Services Authority, the BPR recognizes the capital deposit placed in the form of deposits at Commercial Banks as Equity DSM by reclassifying the recording from the DSM Liability position to the Equity DSM position.
   b) Capital deposits in the form of deposits at the BPR concerned for increasing paid-in capital that result in a change of PSP
   i. The BPR initially records the capital deposit at the BPR concerned in the savings – deposit position.
   ii. After obtaining approval from the Financial Services Authority, the BPR recognizes the capital deposit as Equity DSM by reclassifying the recording from the savings – deposit position to the Equity DSM position. Capital deposits recorded as Equity DSM are not treated as savings.
5. BPRs are required to complete DSM administrative documents at the latest 90 (ninety) working days from the date of approval from the Financial Services Authority for capital deposit funds that result in a change of PSP.
6. DSM that is not accompanied by administrative documents as referred to in item 5) cannot be calculated as a core capital component but remains recorded in the Equity DSM position.

b. Donation Capital in the Form of Other Assets

1. Requests for approval of donation capital must be submitted to the Financial Services Authority accompanied by documents:
   a) a statement letter from the party making the donation of donation capital, whether from shareholders or external parties, that the land and buildings handed over to the BPR are free from claims or disputes; b) the results of the valuation of land and buildings by an independent appraiser containing information including value/price, type/category, status, and location of the land and buildings; c) GMS approval; and d) proof of announcement of land and buildings handed over as donation capital in 2 (two) daily newspapers.
2. After obtaining approval from the Financial Services Authority, the BPR carries out the process of changing the name of assets in the form of land and buildings to the name of the BPR.

c. Additional Core Capital Components and Supplementary Capital Components

1. Capital additions in the form of additional core capital components and supplementary capital components can be carried out by shareholders or external parties.
2. Applications for additional core capital components and supplementary capital components are submitted by the BPR to the Financial Services Authority by submitting agreement documents containing requirements in accordance with POJK KPMM BPR.
3. Recognition as additional core capital and supplementary capital components in the KPMM calculation is done after obtaining approval from the Financial Services Authority.
4. Repayment or settlement of additional core capital components and supplementary capital components can be done after obtaining approval from the Financial Services Authority.

III. CALCULATION OF ATMR

1. In the calculation of ATMR, asset positions recorded in the BPR's financial position report are multiplied by risk weights in the form of specific percentages.

2. Asset positions as referred to in item 1 are the value and/or net claims of assets recorded in the financial position report including accrued interest income (if any) after being reduced by CKPN in accordance with financial accounting standards for assets other than current quality.

3. Risk weights as referred to in item 1 are based on the risks contained in the type and characteristics of assets, debtor groups, guarantors, nature, and grouping of claims that have become due.

4. The surplus of general PPKA that is mandatory to be formed and has been calculated as a supplementary capital component is calculated as a reducing factor for the ATMR calculation.

5. Considering the principles as referred to in item 1, the details of risk weights are as follows:

0% :
a. Cash. b. Securities issued by Bank Indonesia.
c. Securities issued by the Government.
d. Loans given with cash collateral in accordance with the Financial Services Authority Regulation concerning the Quality of Assets of People's Economic Banks (POJK KA BPR), equal to the lower value between the collateral and the debit balance. e. Collateral Taken Over (AYDA) that has exceeded 1 (one) year from the date of takeover. f. Abandoned properties that have exceeded 1 (one) year from the date of designation as Abandoned Properties.

15% : Loans given with collateral in the form of jewelry gold.

20% :
a. Securities issued by Local Governments with ratings AAA+ to AA. b. Placements in other banks in the form of current accounts, deposits, certificates of deposit, savings, and other claims to other banks.
c. Loans to or parts of loans guaranteed by other banks or Local Governments.
d. Parts of loans guaranteed by State-Owned Enterprises (BUMN)/Local-Owned Enterprises (BUMD) conducting business as loan guarantors. BUMN/BUMD conducting business as loan guarantors must meet all the following criteria:

1. The guarantee scheme meets the requirements:
   a) the guarantee period for the loan is at least equal to the loan term; and b) the loan guarantee is unconditional and irrevocable.
   These requirements must be stated in the agreement between the BPR and the credit guarantee institution; and
2. The BUMN/BUMD loan guarantor must comply with regulations concerning credit guarantee institutions.

30% : Loans with collateral in the form of land and/or buildings that have certificates encumbered with mortgage rights or fiduciary rights.

50% :
a. Securities issued by Local Governments with ratings A+ to A-, ratings BBB+ to BBB-, and unrated. b. Loans to BUMN/BUMD or parts of loans guaranteed by BUMN/BUMD conducting credit guarantee business but not meeting the requirements to be given a risk weight of 20% (twenty percent).
c. Parts of loans guaranteed by credit insurance by private insurance companies having the lowest investment-grade rating from a rating agency recognized by the Financial Services Authority in accordance with the Financial Services Authority Circular Letter concerning rating agencies and ratings recognized by the Financial Services Authority having the following criteria:

1. having a business license from the Financial Services Authority;
2. the latest financial report has been audited by a public accountant and meets the minimum solvency level requirements in accordance with regulations; and
3. not being a related party to the BPR.
   d. Loans to employees or pensioners meeting the following requirements:
4. employees or pensioners from Civil Servants (PNS), members of the Indonesian National Armed Forces/Indonesian National Police (TNI/POLRI), state institution employees, or BUMN/BUMD employees;
5. the total financing ceiling for each employee or pensioner is IDR 200,000,000.00 (two hundred million rupiah) or maximum monthly loan installments equal to 30% (thirty percent) of the remaining wages or salary after deducting all normal deductions (take home pay) and after deducting loan installments at banks or other institutions;
6. employees or pensioners are insured with life insurance having the following criteria:
   a) having a business license from the Financial Services Authority; b) the latest financial report has been audited by a public accountant and meets the minimum solvency level requirements in accordance with regulations; and c) not being a related party to the BPR;
7. installment payments or loan settlement are sourced from salaries or pension benefits based on a salary deduction power of attorney or pension benefit from employees or pensioners to the BPR;
8. the BPR documents a photocopy of the written proof of the salary deduction power of attorney or pension benefit from the debtor to the commercial bank or business entity organizing the position (standing instruction) to debit the debtor's account or transfer funds in a certain amount to pay loan installments to the BPR regularly according to the installment schedule until the loan is settled; and
9. the BPR stores:
   a) the original letter of appointment of employees or pension decision letters; or b) copies of the Pension Master Registration Card (KARIP); and c) the original policy of the debtor's insurance.

e. Loans with collateral in the form of land and/or buildings that have certificates but are not encumbered with mortgage rights or fiduciary rights.

70% :
a. Loans given to micro and small businesses meeting all the following criteria:

1. meeting the criteria for micro and small businesses as referred to in Government Regulations concerning ease, protection, and empowerment of cooperatives and micro, small, and medium enterprises.
2. the financing ceiling to debtors is at most IDR 500,000,000.00 (five hundred million rupiah); and
3. not meeting the criteria for loans with collateral in the form of land and/or buildings.
   b. Loans with collateral in the form of motor vehicles, ships or motorized boats, heavy equipment, and/or machinery that are integral with land accompanied by proof of ownership and have been subject to mortgage or fiduciary registration in accordance with regulations.

100% :
a. Claims or other loans that do not meet the risk weight criteria above. b. Claims or loans that have become due or are of bad quality.
c. Securities issued by Local Governments with ratings BB+ to B-.
d. Fixed assets, inventory, and intangible assets. e. AYDA that has not exceeded 1 (one) year from the date of takeover. f. Abandoned Properties that have not exceeded 1 (one) year from the date of designation as Abandoned Properties. g. Capital participation. h. Other assets not mentioned above.

150% Securities issued by Local Governments with ratings less than B-.

6. What is meant by guarantees being unconditional and irrevocable in accordance with Financial Services Authority regulations concerning the maximum limit for granting loans by people's economic banks and the maximum limit for distributing funds by sharia people's economic banks.

7. Parts of loans not guaranteed by collateral or guarantees from Local Governments or other banks or BUMN/BUMD as referred to in item 5 are subject to higher risk weights in accordance with asset criteria.

8. In the event that collateral as referred to in the ATMR calculation is proven to be in dispute and/or has dual ownership, the portion of the loan concerned is subject to a risk weight of 100% (one hundred percent).

9. The ATMR calculation format is as contained in Appendix II which is an integral part of this Financial Services Authority Circular Letter.

IV. PROCEDURE FOR CALCULATING KPMM AND MINIMUM CORE CAPITAL RATIOS

The calculation of the KPMM and minimum core capital ratios for BPRs is carried out as follows:

1. Performing ATMR calculation by:
   a. multiplying the nominal value of each asset position by the risk weight as referred to in Section III item 5. b. the nominal value of asset positions as referred to in letter a is:

1. securities, equal to the recording value in accordance with accounting guidelines applicable to BPRs;
2. placements in other banks, equal to the book value which is the balance of each type of placement;
3. loans, equal to the debit balance;
4. capital participation, equal to the amount of capital participation in the reporting month;
5. other financial assets, equal to the nominal value in the reporting month;
6. cash, equal to the value recorded in the books;
7. fixed assets, inventory, intangible assets, and other assets equal to the book value which is obtained by reducing the acquisition price with depreciation that has been done;
8. AYDA and abandoned properties equal to the recording value in accordance with accounting guidelines applicable to BPRs;
   c. For asset positions as referred to in letter b items 1) to 4) with quality other than current and asset positions as referred to in letter b item 5), in the ATMR calculation, the nominal value is reduced by CKPN;
   d. summing up ATMR from each asset position; e. if there is a surplus between general PPKA that must be calculated and the limit of general PPKA that can be calculated as supplementary capital, the surplus of general PPKA concerned is calculated as a reducing factor for the ATMR calculation.

2. Performing core capital calculation by summing up main core capital and additional core capital and considering reducing factors in the form of deferred tax calculations, goodwill, disagio, AYDA that has exceeded the period of 1 (one) year since takeover, and abandoned properties that have exceeded the period of 1 (one) year since designated as abandoned properties equal to the value recorded in the BPR's financial position report, prior years' losses, current year losses, and/or the difference between CKPN and PPKA if PPKA is greater than CKPN.

3. Performing capital amount calculation by summing up core capital and supplementary capital.

4. Calculating KPMM and minimum core capital ratios by:
   a. The KPMM ratio is comparing the BPR's total capital in item 3 with ATMR in item 1. b. The minimum core capital ratio is comparing the BPR's total core capital in item 2 with ATMR in item 1.

5. The format for calculating minimum capital requirements and minimum core capital requirements for BPRs as contained in Appendix I which is an integral part of this Financial Services Authority Circular Letter.

V. FULFILLMENT OF MINIMUM CORE CAPITAL

1. After the expiration of the time limit as referred to in Article 13 of POJK KPMM BPR, BPRs must maintain the minimum core capital amount of at least IDR 6,000,000,000.00 (six billion rupiah).

2. BPRs experiencing a decrease in core capital to less than IDR 6,000,000,000.00 (six billion rupiah) after the time limit as referred to in Article 13 of POJK KPMM must increase core capital to at least IDR 6,000,000,000.00 (six billion rupiah) at the latest 6 (six) months from:
   a. monthly reports submitted to the Financial Services Authority showing core capital below IDR 6,000,000,000.00 (six billion rupiah):
   Example:
   BPR A has met the minimum core capital of IDR 6,000,000,000.00 (six billion rupiah) as of December 31, 2024. Based on the monthly report as of June 30, 2025, it is known that BPR A's core capital dropped to IDR 5,000,000,000.00 (five billion rupiah). In relation to this condition, BPR A must increase core capital to at least IDR 6,000,000,000.00 (six billion rupiah) at the latest on December 31, 2025 or on the first working day after if December 31, 2025 is a holiday; or b. the date of the minutes of the results of the Financial Services Authority examination showing core capital below IDR 6,000,000,000.00 (six billion rupiah), whether conducted through general examinations or special examinations. Example:
   Based on the monthly report as of the examination position on June 30, 2025, BPR B's core capital was IDR 6,100,000,000.00 (six billion one hundred million rupiah) but based on the minutes of the results of the general examination by the Financial Services Authority on August 7, 2025, it is known that BPR B's core capital is IDR 5,000,000,000.00 (five billion rupiah). In relation to this condition, BPR B must increase core capital to at least IDR 6,000,000,000.00 (six billion rupiah) at the latest on Saturday, February 7, 2026. Considering that February 7, 2026 is a Saturday (holiday), the deadline for fulfilling core capital is done on the first working day after February 7, 2026.

3. Considering Article 15 paragraph (2) of POJK KPMM BPR, BPRs are prohibited from distributing profits if:
   a. profit distribution results in core capital decreasing to less than IDR 6,000,000,000.00 (six billion rupiah); or

b. The BPR has not met the minimum core capital requirement of IDR 6,000,000,000.00 (six billion rupiah).

The term distribution of profits includes, among others, dividend payments to shareholders, bonus distributions to management (tantiem), and non-operational incentive payments.

4. The prohibition on profit distribution as referred to in item 3 does not include operational incentive payments, namely incentives for members of the Board of Directors and members of the Board of Commissioners that are linked to performance, have been budgeted, and are accounted for as expenses by the BPR in the current year.

5. The payment of incentives as referred to in item 4 may be carried out as long as it has been included in the BPR's business plan.

6. The amount of incentive payments as referred to in item 4 is at most equal to the excess of current year profit against the profit projection set aside in the same year for the purpose of fulfilling the minimum core capital as stated in the BPR's action plan.

7. The payment of incentives as referred to in item 4 must not result in the BPR's capital conditions failing to meet the capital ratios as regulated in Article 2 and Article 4 of the OJK Regulation on Minimum Capital Provision and Minimum Core Capital Fulfillment for BPRs (POJK KPMM BPR).

VI. PROCEDURES FOR REQUESTING APPROVAL AND SUBMITTING REPORTS

1. Requests for approval of additional capital contributions, including capital contributions in the form of land and buildings, requests for approval of additional core capital components, requests for approval of supplementary capital components, and requests for approval of donation capital are submitted to the Financial Services Authority (Otoritas Jasa Keuangan) in accordance with the procedures set forth in the Financial Services Authority Regulation regarding People's Economic Banks and Sharia People's Economic Banks, and the POJK on Minimum Capital Provision and Minimum Core Capital Fulfillment for BPRs (POJK KPMM BPR).

2. Reports on the use of fixed assets and/or other assets originating from capital contributions or donation capital:

a. In accordance with Article 7 paragraph (2) and Article 8 paragraph (3) of the POJK KPMM BPR, BPRs submit reports on the use of fixed assets and/or other assets to the Financial Services Authority, accompanied by:

1. evidence of the use of buildings, rooms, and supporting infrastructure; and
2. administrative documents proving the purpose of asset use for BPR operations, including Board of Directors decisions regarding asset use.

b. Reports on the use of fixed assets and/or other assets as referred to in letter a are submitted online via the Financial Services Authority's Online Reporting Application (APOLO) under the BPR Incidental Reports channel.

VII. CLOSING PROVISIONS

1. Upon the commencement of this Financial Services Authority Circular:

a. Financial Services Authority Circular Number 8/SEOJK.03/2016 concerning Minimum Capital Provision Requirements and Minimum Core Capital Fulfillment for People's Credit Banks (Bank Perkreditan Rakyat); and

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b. Financial Services Authority Circular Number 24/SEOJK.03/2019 concerning Amendments to Financial Services Authority Circular Number 8/SEOJK.03/2016 concerning Minimum Capital Provision Requirements and Minimum Core Capital Fulfillment for People's Credit Banks (Bank Perkreditan Rakyat),

are repealed and declared invalid.

2. The calculation of the Minimum Capital Provision Ratio (KPMM) and the minimum core capital ratio in accordance with the provisions of this Financial Services Authority Circular shall first apply to positions as of March 2025.

3. The provisions of this Financial Services Authority Circular shall take effect on the date of establishment.

Established in Jakarta on 11 March 2025

EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
DIAN EDIANA RAE

APPENDIX I
FINANCIAL SERVICES AUTHORITY CIRCULAR
REPUBLIC OF INDONESIA
NUMBER 2/SEOJK.03/2025
CONCERNING
MINIMUM CAPITAL PROVISION REQUIREMENTS AND MINIMUM CORE CAPITAL FULFILLMENT FOR PEOPLE'S ECONOMIC BANKS

CALCULATION OF MINIMUM CAPITAL REQUIREMENTS

CAPITAL COMPONENTS | TOTAL OF EACH COMPONENT | % CALCULATED | TOTAL CAPITAL

I. CORE CAPITAL
I.1. Core Capital Main
1.1.1. Paid-in Capital | 100%
1.1.2. Additional Capital Reserves
1.1.2.1. Agio (Disagio) | 100%
1.1.2.2. Capital Contribution Funds - Equity | 100%
1.1.2.3. Donation Capital
1.1.2.4. Other Additional Paid-in Capital
1.1.2.5. General Reserves | 100%
1.1.2.6. Purpose Reserves | 100%
1.1.2.7. Prior Years' Profit (Loss) | 100%
1.1.2.8. Current Year Profit (Loss) | 100%
1.1.2.9. -/- Deferred Tax | 100%
1.1.2.10. -/- Goodwill | 100%
1.1.2.11. Acquired Assets (AYDA) in the form of land and/or buildings
1.1.2.11.1. -/- Exceeding 1 to 3 years since acquisition, equal to the recorded value in the BPR's financial position report | 15%
1.1.2.11.2. -/- Exceeding 3 to 5 years since acquisition, equal to the recorded value in the BPR's financial position report | 50%
1.1.2.11.3. -/- Exceeding 5 years since acquisition, equal to the recorded value in the BPR's financial position report | 100%

CAPITAL COMPONENTS | TOTAL OF EACH COMPONENT | % CALCULATED | TOTAL CAPITAL

1.1.2.12. Acquired Assets (AYDA) other than land and/or buildings
1.1.2.12.1. -/- Exceeding 1 to 2 years since acquisition, equal to the recorded value in the BPR's financial position report | 50%
1.1.2.12.2. -/- Exceeding 2 years since acquisition, equal to the recorded value in the BPR's financial position report | 100%
1.1.2.13. Vacant Properties
1.1.2.13.1. -/- Exceeding 1 to 3 years since designated as vacant property, equal to the recorded value in the BPR's financial position report | 15%
1.1.2.13.2. -/- Exceeding 3 to 5 years since designated as vacant property, equal to the recorded value in the BPR's financial position report | 50%
1.1.2.13.3. -/- Exceeding 5 years since designated as vacant property, equal to the recorded value in the BPR's financial position report | 100%
1.1.2.14. -/- Deficit between CKPN and PPKA | 100%
Subtotal Additional Capital Reserves
Total Core Capital Main
I.2. Additional Core Capital | 100%
I.3. TOTAL CORE CAPITAL (I.1 + I.2)

II. SUPPLEMENTARY CAPITAL
II.1. Capital components meeting specific requirements | Maximum 50% of core capital II.2. Revaluation gains on fixed assets | 100% II.3. General PPKA on productive assets | Maximum 1.25% of RWA (ATMR) II.4. TOTAL SUPPLEMENTARY CAPITAL (II.1 + II.2 + II.3) | Maximum 100% of core capital

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CAPITAL COMPONENTS | TOTAL OF EACH COMPONENT | % CALCULATED | TOTAL CAPITAL

III. TOTAL CAPITAL (I.3 + II.4)

Total RWA (ATMR) before calculation of the excess of general PPKA Minus: The excess of general PPKA that must be calculated from the limit of general PPKA that can be counted as supplementary capital (-) RWA (ATMR)

Minimum Capital Provision Ratio (KPMM) (%) = Total Capital / RWA (ATMR)

Amount of capital shortfall to achieve a KPMM ratio of 12% of RWA (ATMR) (%)

Core Capital Ratio (%) = Total Core Capital / RWA (ATMR)

Amount of capital shortfall to achieve a core capital ratio of 8% of RWA (ATMR) (%)

Established in Jakarta on 11 March 2025

EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY,
REPUBLIC OF INDONESIA signed
DIAN EDIANA RAE

APPENDIX II
FINANCIAL SERVICES AUTHORITY CIRCULAR
REPUBLIC OF INDONESIA
NUMBER 2/SEOJK.03/2025
CONCERNING
MINIMUM CAPITAL PROVISION REQUIREMENTS AND MINIMUM CORE CAPITAL FULFILLMENT FOR PEOPLE'S ECONOMIC BANKS

CALCULATION OF RISK-WEIGHTED ASSETS (RWA / ATMR)

NO. | COMPONENT | NOMINAL CKPN | NOMINAL AFTER DEDUCTING CKPN | RISK WEIGHT (%) | RWA (ATMR)

1. Cash | 0%
2. Securities issued by Bank Indonesia | 0%
3. Securities issued by the Government | 0%
4. Securities issued by Regional Governments
   a. Rating AAA to AA | 20% b. Rating A+ to A- | 50%
   c. Rating BBB+ to BBB- | 50%
   d. Rating BB+ to B- | 100% e. Rating below B- | 150% f. No Rating | 50%
5. Loans granted with cash collateral in accordance with POJK on BPR Collateral (KA BPR), equal to the lower value between collateral and loan balance *) | 0%
6. Acquired Assets (AYDA) that have exceeded 1 (one) year since the date of acquisition | 0%
7. Vacant Properties that have exceeded 1 (one) year since the date of designation | 0%
8. Loans granted with jewelry gold collateral *) | 15%
9. Placements in other banks in the form of checking accounts, time deposits, certificates of deposit, savings, and other claims on other banks *) | 20%
10. Loans to or portions of loans guaranteed by other banks or Regional Governments *) | 20%
    a. Loans to other banks b. Loans to regional governments
    c. Portions of loans guaranteed by other banks
    d. Portions of loans guaranteed by regional governments
11. Portions of loans guaranteed by State-Owned Enterprises (BUMN)/Regional-Owned Enterprises (BUMD) conducting credit guarantee businesses *) | 20%

NO. | COMPONENT | NOMINAL CKPN | NOMINAL AFTER DEDUCTING CKPN | RISK WEIGHT (%) | RWA (ATMR)
12. Loans with collateral in the form of land and/or buildings with certificates encumbered by land rights (hak tanggungan) or fiduciary rights *) | 30%
13. Loans to BUMN/BUMD *) | 50%
14. Portions of loans guaranteed by BUMN/BUMD conducting credit guarantee businesses but not meeting the requirements for a 20% (twenty percent) risk weight *) | 50%
15. Portions of loans guaranteed by credit insurance by private insurance companies with specific requirements *) | 50%
16. Loans to employees or retirees meeting requirements *) | 50%
17. Loans with collateral in the form of land and/or buildings with certificates not encumbered by land rights (hak tanggungan) or fiduciary rights *) | 50%
18. Loans granted to micro and small businesses meeting all criteria *) | 70%
19. Loans with collateral in the form of motor vehicles, ships or motorized boats, heavy equipment, and/or machinery that are integral with land, accompanied by proof of ownership and subject to mortgage or fiduciary registration in accordance with applicable laws and regulations *) | 70%
20. Equity Investments | 100%
21. Other claims or loans not meeting the risk weight criteria above *) | 100%
22. Claims or loans that are overdue or of bad quality *) | 100%
a. Claims or loans that are overdue b. Claims or loans of bad quality
23. Fixed assets, inventory, and intangible assets | 100%

Copy is consistent with the original
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NO. | COMPONENT | NOMINAL CKPN | NOMINAL AFTER DEDUCTING CKPN | RISK WEIGHT (%) | RWA (ATMR)
24. Acquired Assets (AYDA) that have not exceeded 1 (one) year since the date of acquisition | 100%
25. Vacant Properties that have not exceeded 1 (one) year since the date of designation | 100%
26. Other assets, other than items 1 to 25 | 100%
Total RWA (ATMR) Before Calculation of Excess of General PPKA

Minus: The excess of general PPKA that must be calculated from the limit of general PPKA that can be counted as supplementary capital Total RWA (ATMR)

Notes:
*) Filled with the loan balance or claim of loans or claims that have quality other than bad and are not yet overdue.
) Filled with the loan balance or claim.

Established in Jakarta on 11 March 2025

EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY
DIAN EDIANA RAE signed