OJK Circular Letter No. 27/SEOJK.03/2022 on Credit Information Management Institutions

To:
The Board of Directors of the Credit Information Management Institution

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA

NUMBER: 27 /SEOJK.03/2022

ABOUT

CREDIT INFORMATION MANAGEMENT INSTITUTION

In view of the implementation of the Financial Services Authority Regulation Number 5/POJK.03/2022 concerning Credit Information Management Institutions (State Gazette of the Republic of Indonesia Year 2022 Number 77, Additional State Gazette of the Republic of Indonesia Number 6785), it is necessary to regulate implementation provisions regarding Credit Information Management Institutions in a Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

To be able to conduct business continuously, further regulation of Credit Information Management Institutions (LPIP) is required, including regarding institutional structure, implementation of good governance, protection of stakeholders, compliance with applicable laws and regulations and general ethical values, as well as the management and development of Credit Information as products and/or services generated by LPIP.
In the context of managing and developing Credit Information as products and/or services generated by LPIP, diverse, comprehensive Credit Information with added value is needed, requiring an expansion of the scope of Credit Data or Financing Data and Other Data sourced from Financial Institutions and non-Financial Institutions.
To ensure that LPIP operations are conducted in accordance with laws and regulations and in accordance with the purpose of the existence of LPIP, the Financial Services Authority (OJK) conducts direct supervision and indirect supervision through the analysis of reports, documents, data and/or other information submitted by LPIP and/or other parties to OJK.

II. LPIP BUSINESS ACTIVITIES

LPIP is a rating institution that collects and processes Credit Data or Financing Data and Other Data to generate Credit Information.
Business activities conducted by LPIP consist of:
a. collecting and processing Credit Data or Financing Data and/or Other Data; b. providing rating services to Debtors or Customers based on Credit Data or Financing Data and/or Other Data; and
c. generating Credit Information with added value based on Credit Data or Financing Data and/or Other Data.
The rating institution for LPIP as referred to in item 2 letter b is different from the securities rating institution as referred to in the OJK Regulation regarding licensing of securities rating companies. LPIP generates report and value products regarding the creditworthiness or financing feasibility of Debtors or Customers, and packages and analyzes reports including through the issuance of credit scores.
The credit score as referred to in item 3 and some other LPIP products and/or services will subsequently be used by Financial Institutions as a source of analysis in providing funds to prospective Debtors or Customers and/or for other purposes. In relation to this, LPIP plays a role as a supporting institution in the financial services sector.

III. IMPLEMENTATION OF GOVERNANCE

The implementation of governance at LPIP must always be based on 5 (five) basic principles of good governance, namely transparency, accountability, responsibility, independence, and fairness, which are manifested at least in the form of:

a. Implementation of duties and responsibilities of the Board of Directors In the implementation of duties and responsibilities, the LPIP Board of Directors must at least do the following:
1. manage LPIP in accordance with its authority and take full responsibility for the implementation of LPIP management as regulated in the LPIP articles of association and/or house rules and laws and regulations;
2. apply principles of good governance in every LPIP business activity at all levels or organizational tiers;
3. follow up on audit findings and recommendations from the work unit or official responsible for the implementation of LPIP internal audit, external auditors, results of the Board of Commissioners' supervision, results of OJK supervision, and/or results of other authority supervision;
4. ensure adequate management of human resources, including:
  a) disclosure of LPIP's strategic human resources policies to employees; b) separation of duties and responsibilities between work units or operational units handling data management, system management, bookkeeping, operations, and supporting operational activities; and c) appointment of an official responsible for implementing the internal audit function independent of other work units, risk management functions, and compliance;
5. be accountable for the implementation of its duties to shareholders in the General Meeting of Shareholders (GMS) in accordance with laws and regulations;
6. provide accurate, relevant, and timely data and information to the Board of Commissioners;
7. have and implement guidelines and work rules for Board of Directors members which must at least include:
  a) work ethics; b) working hours; and c) meeting regulations;
8. take strategic policies and decisions decided in Board of Directors meetings with the following mechanism:
  a) decision-making in Board of Directors meetings is conducted through deliberation to reach consensus; b) in the event that consensus as referred to in letter a) is not reached, decision-making in the meeting is conducted based on the majority vote; c) the results of the Board of Directors meeting as referred to in letter a) are recorded in the meeting minutes and documented properly; and d) differences of opinion occurring in decision-making by majority vote as referred to in letter b) are clearly stated in the meeting minutes along with the reasons for the difference;
9. prepare financial reports based on financial accounting standards and be responsible for the completeness and truthfulness of the content of the financial reports, including:
  a) appointing competent employees according to the complexity of LPIP business as preparers of financial reports; b) ensuring that financial report preparers have up-to-date competence in accordance with the development of LPIP business complexity and activities; c) signing financial reports, at least conducted by the President Director and 1 (one) member of the LPIP Board of Directors who oversees the accounting function; and d) if the President Director oversees the accounting function, the LPIP financial reports are signed by the President Director and one of the other Directors;
10. in the context of governance implementation, Board of Directors members disclose:
  a) their indirect share ownership in the relevant LPIP and/or their share ownership in other companies; b) financial relationships and/or family relationships with members of the Board of Commissioners, other Board of Directors members, and/or LPIP shareholders; c) remuneration and other facilities received; and d) concurrent positions in other companies, organizations, or institutions.
b. Implementation of duties and responsibilities of the Board of Commissioners In the implementation of duties and responsibilities, the LPIP Board of Commissioners must at least do the following:
1. carry out duties and responsibilities independently and provide sufficient time to carry out duties and responsibilities optimally;
2. ensure that good governance is implemented in every LPIP business activity at all levels or organizational tiers;
3. carry out supervision over the implementation of duties and responsibilities of the Board of Directors periodically and ad hoc and provide advice to the Board of Directors. In the context of supervision implementation, the Board of Commissioners may request the Board of Directors to provide explanations including regarding problems, performance, and operational policies of LPIP, which can be conducted in meetings between the Board of Commissioners and the Board of Directors and recorded in meeting minutes and documented properly;
4. direct, monitor, and evaluate the implementation of LPIP strategic policies;
5. participate in decision-making on operational activities only for matters stipulated in the LPIP articles of association or laws and regulations without eliminating the Board of Directors' responsibility for the implementation of LPIP management;
6. ensure that the Board of Directors has followed up on audit findings and recommendations from the LPIP internal audit work unit, external auditors, results of the Board of Commissioners' supervision, results of OJK supervision, and/or results of other authority supervision;
7. report to OJK at the latest 10 (ten) working days since discovery of:
  a) violations of laws and regulations concerning credit information management institutions, electronic information and transactions, personal data protection, data confidentiality, and other relevant laws and regulations (if any); and/or b) conditions or estimated conditions that may endanger the continuity of LPIP business;
8. have and implement guidelines and work rules for Board of Commissioners members which must at least include:
  a) work ethics; b) working hours; and c) meeting regulations;
9. hold Board of Commissioners meetings at least 1 (one) time every 3 (three) months and attended by all Board of Commissioners members with meeting agendas including:
  a) LPIP business plan; b) LPIP strategic issues; c) evaluation/setting of strategic policies; d) evaluation of LPIP business plan realization; and e) directives from the Board of Commissioners to the Board of Directors regarding the implementation of improvement efforts/follow-up in the event of performance decline or problems are found, accompanied by an action plan;
10. Board of Commissioners meetings as referred to in item 9) are held with direct presence or conducted using teleconference technology, video conferencing, or other electronic media facilities that allow all participants to see and hear each other directly and participate in the meeting;
11. hold meetings with the agenda of setting the LPIP business plan as referred to in item 9) letter a) at least 1 (one) time every 1 (one) year;
12. make decisions in Board of Commissioners meetings with the following mechanism:
  a) decision-making in Board of Commissioners meetings is conducted through deliberation to reach consensus; b) in the event that consensus as referred to in letter a) is not reached, decision-making in the meeting is conducted based on the majority vote; c) the results of the Board of Commissioners meeting as referred to in letter a) are recorded in the meeting minutes and documented properly; d) differences of opinion occurring in decision-making by majority vote as referred to in letter b) are clearly stated in the meeting minutes along with the reasons for the difference;
13. in the context of governance implementation, Board of Commissioners members disclose:
  a) their indirect share ownership in the relevant LPIP and/or their share ownership in other companies; b) financial relationships and/or family relationships with other Board of Commissioners members, Board of Directors members, and/or LPIP shareholders; c) remuneration and other facilities received; and d) concurrent positions in other companies, organizations, or institutions.
c. Handling of conflicts of interest
1. Conflicts of interest include differences between the economic interests of LPIP and the personal economic interests of shareholders, Board of Directors members, Board of Commissioners members, executive officials, and/or parties related to LPIP.
2. Board of Directors members, Board of Commissioners members, and executive officials of LPIP must avoid making decisions in situations and conditions where conflicts of interest exist. However, if decisions must still be made, the parties concerned must prioritize the economic interests of LPIP and prevent LPIP from potential losses or reduced profits, and disclose the conflict of interest condition in every decision.
3. Providing special treatment to certain parties outside internal procedures and applicable regulations is included in the category of conflicts of interest that cause losses to LPIP or reduce LPIP profits, including providing lower product prices to LPIP members who have related ownership and management with LPIP.
4. Disclosure of conflicts of interest in every decision must at least include the name and position of the party with the conflict of interest, the name and position of the decision-maker of the transaction containing the conflict of interest, the type of transaction, the transaction value, the basis for decision-making, and notes.
5. To avoid decision-making that has the potential to harm LPIP or reduce LPIP profits, LPIP must have and apply internal policies, systems, and procedures for resolving conflicts of interest, including:
  a) handling of conflicts of interest binding every Board of Directors member, Board of Commissioners member, executive official, and LPIP employee, including decision-making procedures; and b) administration, documentation, and disclosure of the aforementioned conflicts of interest in meeting minutes.
d. Implementation of risk management, compliance, internal audit, external audit functions, and operational guidelines related to cooperation with LPIP members
1. General
  a) In order to implement good governance, the LPIP Board of Directors must at least appoint executive officials who carry out:
  (1) the internal audit function, which cannot hold concurrent duties and must be independent and report directly to the President Director; (2) the risk management function, which reports directly to one member of the LPIP Board of Directors responsible for the risk management function; and (3) the compliance function, which reports directly to one member of the LPIP Board of Directors responsible for the compliance function. b) The official appointed to carry out the risk management function may concurrently hold the position of the official carrying out the compliance function. c) The internal audit function, risk management function, and compliance function are adjusted to the size, characteristics, and complexity of LPIP business.
2. Internal Audit Function
  a) Internal audit is an independent and objective assurance and consulting activity aimed at increasing value and improving LPIP operations, through a systematic approach by evaluating and increasing the effectiveness of LPIP risk management, controls, and governance processes. b) Duties of the internal audit executive official must at least:
  (1) assist the duties of the LPIP President Director and Board of Commissioners in supervising LPIP operations covering planning, implementation, and monitoring of audit results; (2) prepare periodic internal audit plans and budget allocations for the implementation of internal audit duties considering the effectiveness of applied risk management and based on comprehensive risk assessment; (3) make analysis and assessment in the fields of finance, accounting, operations, and other activities at least through direct examination and document analysis; (4) identify all possibilities to improve and increase the efficiency of resource and fund utilization; (5) provide improvement suggestions and objective information about audited activities at all management levels; and (6) ensure that in the event of using external party services for internal audit activities:
  (a) knowledge transfer between external parties to internal audit function members is organized, considering the use of external expert services on a temporary basis; and (b) the use of external party services does not affect the independence and objectivity of the internal audit function. c) The internal audit executive official submits reports to the President Director and copies to the Board of Commissioners and the Director overseeing the compliance function. d) In the event that communication with the President Director as referred to in letter c) is considered inappropriate, the internal audit executive official may submit reports directly to the Board of Commissioners. For example, findings of the internal audit executive official regarding the integrity of the President Director. e) In carrying out its functions, the internal audit executive official must have standard guidelines for the implementation of the internal audit function approved by the President Director which must at least include organizational structure, functions, duties and responsibilities, scope of work, relationship of internal audit with the internal control system, audit implementation, and documentation and administration. f) The scope of internal audit work must cover all aspects of LPIP activities that are estimated to directly or indirectly affect the achievement of LPIP interests and stakeholders' interests. In this regard, besides including examination and assessment of the adequacy and effectiveness of the internal control system and its implementation quality, it also covers all aspects and elements of the LPIP organization so as to be able to support optimal analysis in helping the management decision-making process. g) Audit implementation can be distinguished into 5 (five) stages of activities, namely the audit preparation stage, audit program preparation stage, audit assignment implementation stage, audit result reporting stage, and audit result follow-up stage.
3. Risk Management Function
  a) In carrying out its functions, the risk management executive official must have guidelines for the implementation of LPIP risk management approved by the Board of Directors member overseeing the risk management function which must at least include:
  (1) general risk management implementation covering at least 4 (four) pillars, namely:
  (a) supervision by the Board of Directors and Board of Commissioners; (b) adequacy of policies, procedures, and limits; (c) adequacy of risk identification, measurement, monitoring, and control processes and risk management information systems; and (d) comprehensive internal control system; (2) risk management implementation for each type of risk, covering risk management implementation for all types of risk, including operational risk, compliance risk, reputation risk, and strategic risk; and (3) assessment of risk management implementation in the form of risk profile assessment including assessment of inherent risk and assessment of the quality of risk management implementation reflecting LPIP's risk control system. b) In the context of implementing effective risk management, the risk management executive official must take preparation, development, and/or refinement steps which must at least include:
  (1) conducting diagnosis and analysis regarding organization, policies, procedures, limits, guidelines, and system development related to risk management implementation; (2) preparing a refinement plan in the event of inconsistencies between risk management practices and LPIP risk management implementation guidelines; (3) socializing risk management implementation guidelines to employees so as to understand risk management practices and develop a risk culture among all employees at every organizational level of LPIP; and (4) ensuring that the official responsible for implementing the internal audit function participates in monitoring the preparation of risk management implementation guidelines and the implementation of such risk management.
4. Compliance Function
  a) The compliance function is a series of preventive actions or steps to ensure that policies, regulations, systems and procedures, and business activities conducted by LPIP are in accordance with OJK regulations and other laws and regulations, and to ensure LPIP's compliance with commitments made by LPIP to OJK and/or other authorities. b) In carrying out its functions, the compliance executive official must at least do the following:
  (1) create steps to support the creation of a compliance culture in all LPIP business activities at every organizational level; (2) identify, measure, monitor, and control compliance risks; (3) assess and evaluate the effectiveness, adequacy, and suitability of policies, regulations, systems, and procedures owned by LPIP with laws and regulations; (4) conduct review and/or recommend updating and refinement of policies, regulations, systems, and procedures owned by LPIP to be in accordance with OJK regulations and laws and regulations; (5) make efforts to ensure that policies, regulations, systems and procedures, and LPIP business activities are in accordance with OJK regulations and laws and regulations; and (6) carry out other tasks related to the compliance function. c) The executive official handling the compliance function prepares work guidelines, systems, and compliance procedures approved by the Board of Directors member overseeing the compliance function with material at least including:
  (1) parties responsible in the compliance function; (2) compliance procedures standards in every LPIP work unit including obligations for every LPIP work unit to carry out operational activities in accordance with internal regulations and laws and regulations and the obligation to adjust LPIP internal regulations with the latest laws and regulations; (3) decision-making procedures by management related to the compliance function; (4) compliance ethics code in order to support the creation of values, behaviors, and actions that support compliance with OJK regulations and other laws and regulations; and (5) coordination flow and monitoring procedures between the Board of Directors member overseeing the compliance function and other Board of Directors members, the Board of Directors member overseeing the compliance function and the executive official handling the compliance function, and the executive official handling the compliance function with other work units in the relevant LPIP.
5. External Audit
  a) In the implementation of annual financial report audits, LPIP appoints a public accountant and public accounting firm registered with OJK. b) The appointment of public accountants and public accounting firms must first obtain approval from the GMS.
6. Operational Guidelines Related to Cooperation with LPIP Members
  a) Operational guidelines related to cooperation with LPIP members are cooperation guidelines between LPIP and LPIP members. b) In order to expand and enrich data coverage, LPIP cooperates with LPIP members to obtain Other Data based on:
  (1) Agreements between LPIP and LPIP members; (2) Applicable laws and regulations including laws and regulations concerning consumer protection, laws and regulations concerning public information openness, and laws and regulations in the financial services sector. c) Cooperation guidelines between LPIP and LPIP members must at least include:
  (1) rights and obligations of each party; (2) objectives and limits of data management; (3) data updating and correction mechanisms; (4) obligations of LPIP members to guarantee the legality of data usage in accordance with...

applicable regulations;
(5) the obligation of LPIP members to notify Debtors or Customers in writing regarding the utilization of Credit or Financing Data and/or Other Data by LPIP, OJK, and/or Credit Information Users based on applicable regulations; (6) the mechanism for handling and resolving complaints; and (7) the dispute resolution mechanism. e. LPIP's annual business plan
1) The business plan is a written document describing LPIP's short-term (i.e., 1 (one) year) and medium-term (i.e., 3 (three) years) business activity plans, including plans to improve business performance and strategies to realize these plans according to established targets and timelines, while still adhering to applicable regulations and risk management implementation.
2) In addition to submitting plans for product issuance and/or new activities in the annual business plan as regulated in Article 89 letter f of the OJK Regulation regarding Credit Information Service Providers, LPIP must submit reports on products and new activities to OJK, consisting of reports on plans for product issuance and new activities, as well as reports on the realization of product issuance and new activities, with scope, format, and submission methods as specified in the Appendix, which is an integral part of this OJK Circular.
f. LPIP implements transparency of financial and non-financial conditions as follows:
1) announcing annual reports on the LPIP website no later than May 31 of the following year;
2) informing about products and/or services and the use of Customer data based on applicable regulations regarding LPIP products, consumer protection, and personal data protection; and
3) informing about governance implementation, at least including the disclosure of all aspects of good governance principle implementation.
2. LPIP conducts a self-assessment and prepares a governance implementation report at the end of each year, at least including:
a. the scope of governance as referred to in number 1 letter a to letter f; b. share ownership of LPIP Board of Directors members, as well as financial and/or family relationships of Board of Directors members with Board of Commissioners members, other Board of Directors members, and/or LPIP shareholders;
c. share ownership of LPIP Board of Commissioners members, as well as financial and/or family relationships of Board of Commissioners members with other Board of Commissioners members, Board of Directors members, and/or LPIP shareholders;
d. concurrent positions of LPIP Board of Directors members in other companies, organizations, or institutions; e. remuneration packages/policies and other facilities for LPIP Board of Directors and Board of Commissioners; f. the ratio of the highest to lowest salaries; g. the frequency of LPIP Board of Commissioners meetings; h. the number of internal deviations that occurred and the resolution efforts by LPIP;
i. the number of legal issues and resolution efforts by LPIP;
j. transactions containing conflicts of interest; and k. the provision of funds for social and political activities, both nominal amounts and fund recipients.
3. The self-assessment report outlines conclusions regarding the implementation of LPIP governance, covering governance structure, governance process, and governance outcome, detailed as follows:

a. governance structure assessment aims to evaluate the adequacy of LPIP's governance structure and infrastructure so that the implementation of good governance principles produces outcomes consistent with LPIP stakeholders' expectations. Included in LPIP's governance structure are the Board of Directors, Board of Commissioners, and work units within LPIP. Included in governance infrastructure are LPIP policies and procedures, management information systems, and the main duties and functions of each organizational structure. b. Governance process assessment aims to evaluate the effectiveness of implementing good governance principles supported by the adequacy of LPIP's governance structure and infrastructure, thereby producing outcomes consistent with LPIP stakeholders' expectations.
c. Governance outcome assessment aims to evaluate the quality of outcomes meeting LPIP stakeholders' expectations, which are the result of implementing good governance principles and supported by the adequacy of LPIP's governance structure and infrastructure. Outcomes include qualitative and quantitative aspects, including:
1) adequacy of report transparency;
2) compliance with applicable regulations;
3) consumer protection;
4) objectivity in conducting assessments or audits;
5) LPIP performance such as profitability, efficiency, and capitalization; and/or
6) increases or decreases in compliance with regulations and resolution of issues faced by LPIP such as fraud, data confidentiality violations, and violations of regulations regarding LPIP reports to OJK.
In this description, it must also explain the identification of issues in the form of weaknesses and root causes, as well as strengths in governance implementation.

4. OJK conducts assessments or evaluations of the self-assessment results regarding governance implementation and may request LPIP to submit action plans and adjustments to action plans containing improvement steps that must be implemented by LPIP with specific target times.
5. The first self-assessment report and governance implementation report must be submitted to OJK as of the position in December 2023.
6. The governance implementation report must be approved and signed by the LPIP Chief Executive Officer and Chief Commissioner.
IV. COMPETENCY AND PROPRIETY ASSESSMENT PROCEDURES
1. General
a. Competency and propriety assessments for LPIP are conducted by OJK against Controlling Key Parties and Managing Key Parties, including:
1) Prospective Controlling Key Parties, including:
a) legal entities that purchase, receive gifts, inherit, or undergo other forms of rights transfer regarding LPIP shares, thereby meeting the criteria for prospective Controlling Key Parties; b) LPIP shareholders who are not classified as Controlling Key Parties that increase capital contributions, purchase LPIP shares, receive LPIP share gifts, inherit shares, or undergo other forms of rights transfer regarding LPIP shares, thereby causing them to meet the criteria for Controlling Key Parties; c) shareholders who are not Controlling Key Parties but are deemed by OJK to control LPIP; d) legal entities classified as Controlling Key Parties due to changes in LPIP business group structure;

e) legal entities that will become Controlling Key Parties in LPIP resulting from a merger; f) legal entities that will become Controlling Key Parties in LPIP resulting from a consolidation; and/or g) legal entities that will become Controlling Key Parties in a newly established LPIP.
2) Prospective Managing Key Parties, i.e., the Board of Directors and Board of Commissioners, including:
a) persons who have never been members of the LPIP Board of Directors or Board of Commissioners, who are nominated as members of the LPIP Board of Directors or Board of Commissioners; b) LPIP Board of Commissioners members nominated as members of the Board of Directors in the same LPIP; c) LPIP Board of Directors members nominated as directors overseeing different functions in the same LPIP; d) LPIP Board of Directors members nominated as members of the Board of Commissioners in the same LPIP; e) LPIP Board of Directors or Board of Commissioners members nominated for higher positions in the same LPIP, including:
(1) Board of Commissioners members who will be appointed as Chief Commissioner/Deputy Chief Commissioner or equivalent in the same LPIP; (2) Board of Directors members who will be appointed as Chief Executive Officer/Deputy Chief Executive Officer or equivalent in the same LPIP; f) persons nominated as members of the Board of Directors or Board of Commissioners in LPIP resulting from a merger, originating from the merged LPIP; g) persons nominated as members of the Board of Directors or Board of Commissioners in LPIP resulting from a merger, originating from the surviving LPIP, including position extensions; and/or

h) persons nominated as members of the Board of Directors or Board of Commissioners in LPIP resulting from a consolidation, originating from the consolidating LPIP.
Competency and propriety assessments are not conducted for position extensions for Board of Directors and Board of Commissioners members, except as specified in letter g). This extension is reported to OJK accompanied by the General Meeting of Shareholders (GMS) decision establishing the extension. b. Prospective Key Parties cannot be submitted for competency and propriety assessments, and assessments will be halted for becoming Key Parties if they are undergoing:
1) legal processes;
2) competency and propriety assessments at OJK; and/or
3) re-assessment processes due to indications of integrity, financial soundness, financial reputation, and/or competence issues in an LPIP and/or financial service institution.
c. Legal processes as referred to in letter b number 1) mean that the prospective Key Party has the status of suspect or defendant in a criminal case or is undergoing judicial processes related to bankruptcy.
d. Undergoing competency and propriety assessments at OJK as referred to in letter b number 2) means that the prospective Key Party is being submitted as a candidate for Key Parties at institutions supervised by OJK. OJK halts competency and propriety assessments for nominations other than the first nomination submitted by the relevant institution to OJK. e. Undergoing re-assessment processes due to indications of integrity, financial soundness/reputation, and/or competence issues in an LPIP or financial service institution as referred to in letter b number 3), means that the prospective Key Party is undergoing re-assessment due to indications of integrity, financial soundness/reputation, and/or competence issues in their capacity as Key Parties. OJK halts competency and propriety assessments for nominations submitted by the relevant institution to OJK. f. OJK notifies the halting of competency and propriety assessments to the LPIP submitting the Key Party nomination. g. Prospective Key Parties whose competency and propriety assessments are halted may be submitted again to OJK to become prospective Key Parties if they have completed:
1) legal processes proven by:
a) Order for Termination of Investigation (SP3); b) court decisions that have permanent legal force stating that the party is not guilty; or c) court decisions that have permanent legal force stating that the party is not declared bankrupt;
2) Re-assessment processes regarding integrity, financial soundness/reputation, and/or competence issues in an institution supervised by OJK but not proven to have integrity, financial soundness/reputation, and/or competence issues.
h. Requests for approval to become Key Parties are submitted by:
1) prospective LPIP shareholders, in the case of LPIP establishment license requests; or
2) LPIP Board of Directors members, in the case where LPIP has obtained business licenses;
accompanied by administrative requirement documents.
i. In the case where LPIP Board of Directors members as referred to in letter h number 2) cannot perform their functions or have conflicts of interest, requests are submitted by:

1) other Board of Directors members who do not have conflicts of interest;
2) Board of Commissioners members if all Board of Directors members cannot perform their functions or have conflicts of interest; or
3) other parties appointed by GMS if all Board of Directors or Board of Commissioners members cannot perform their functions or have conflicts of interest.
j. Submission of requests and/or administrative requirement documents can be done via electronic means if regulations regarding this have been implemented. k. OJK may return requests as referred to in letter h if administrative requirement documents are incomplete.
l. Competency and propriety assessments for Controlling Key Parties are conducted by:
1) assessing the relevant legal entity, its Board of Directors, and Board of Commissioners.
2) in the context of administrative assessments for prospective Controlling Key Parties, prospective Controlling Key Parties must present/present at least:
a) the prospective Controlling Key Party's plans for developing the LPIP to be owned for at least 3 (three) years since ownership; and b) the prospective Controlling Key Party's strategy in the event that the LPIP to be owned faces capital, liquidity, and solvency difficulties. m. Competency and propriety assessments for prospective Managing Key Parties are conducted as follows:
1) LPIP may submit at most 2 (two) prospective Managing Key Parties for each job vacancy, and the selection of submitted candidates must comply with applicable regulations.

2) Prospective Managing Key Parties must meet competency requirements as regulated in Article 13 of the OJK Regulation regarding Credit Information Service Providers, including:
a) for prospective Board of Directors members:
(1) adequate and relevant knowledge in LPIP regarding their positions, including knowledge of LPIP regulations and operations, including understanding of risk management. (2) experience in LPIP and/or in banking or financial industries closely related to LPIP business processes, including experience and expertise in operations, marketing, accounting, auditing, financing, credit, money markets, capital markets, law, or experience and expertise in supervising financial service institutions. (3) ability to manage and develop LPIP strategically and healthily (including ability to anticipate economic developments and analyze LPIP industry). b) for prospective Board of Commissioners members:
(1) adequate and relevant knowledge in LPIP regarding their positions, including knowledge of LPIP regulations and operations, including understanding of risk management. (2) experience in LPIP and/or in banking or financial industries closely related to LPIP business processes, including experience and expertise in operations, marketing, accounting, auditing, financing, credit, money markets, capital markets, law, or experience and expertise in supervising financial service institutions.

3) OJK conducts clarifications with the relevant candidates, including:
a) administrative documents submitted; b) the submitted candidate's experience considering their position and the condition of the LPIP where they will be nominated; and c) whether the submitted candidate has negative data or information obtained by OJK. n. Prospective Controlling Key Parties who have not obtained OJK approval cannot perform their actions as Controlling Key Parties even if they already own LPIP shares. o. Prospective Managing Key Parties who have not obtained OJK approval cannot perform actions, duties, and functions as Managing Key Parties even if they have obtained approval and been appointed by GMS.
2. Results of Competency and Propriety Assessments
a. OJK determines the results of competency and propriety assessments as follows:
1) approved; or
2) not approved.
b. The timeframe for determining the results of competency and propriety assessments as referred to in letter a is at most 30 (thirty) working days after all request documents are received completely.
c. In the case where competency and propriety assessment processes for Key Parties are conducted during license requests for LPIP establishment, merger, and/or consolidation, OJK provides determination of competency and propriety assessment results within timeframes adjusted to the granting of licenses for LPIP establishment, merger, and/or consolidation.
d. OJK notifies the results of competency and propriety assessments as referred to in letter a in writing to LPIP. e. In addition to notifying LPIP as referred to in letter d, OJK may notify the results of competency and propriety assessments to other interested parties in the implementation of OJK's functions, duties, and authorities or as required by applicable regulations. f. Prospective Managing Key Parties who have undergone competency and propriety assessments and obtained OJK approval must be appointed by GMS at most 60 (sixty) working days from the date of OJK approval. g. In the case where OJK-approved prospective Managing Key Parties are not appointed within the timeframe as referred to in letter f, the approval provided by OJK becomes invalid. h. Prospective Managing Key Parties not approved by OJK originating from position transfers as Managing Key Parties in the same LPIP may still perform their duties and functions as long as they have not been dismissed from their previous positions according to the LPIP Articles of Association.
i. Prospective Managing Key Parties not approved by OJK but who have obtained approval and been appointed as Key Parties according to GMS decisions must have LPIP convene GMS to cancel their appointments within at most 3 (three) months from the date of non-approval.
j. LPIP must report the cancellation of appointments of prospective Managing Key Parties to OJK at most 10 (ten) working days after the GMS canceling the appointments. k. Prospective Controlling Key Parties not approved by OJK due to not meeting integrity requirements but who already own shares in the submitting LPIP must:
1) transfer all their share ownership in the relevant LPIP and not exercise control; and
2) not exercise shareholder rights, i.e., the right to attend, vote, and be counted in the quorum at GMS, as well as the right to receive distributed dividends.
Transfers of ownership by prospective Controlling Key Parties not approved by OJK must be completed at most 1 (one) year from the date of non-approval.
l. Prospective Controlling Key Parties not approved by OJK due to not meeting financial soundness requirements but who already own shares in the submitting LPIP must:
1) transfer part of their share ownership in the relevant LPIP so that the number of shares owned returns to the initial number of shares before the share increase that caused them to become prospective Controlling Key Parties, and not exercise control; and
2) only exercise shareholder rights, i.e., the right to attend, vote, and be counted in the quorum at GMS, as well as the right to receive distributed dividends, equal to the initial number of shares before the share increase that caused them to become PSP.
Transfers of share ownership as referred to in number 1) must be completed at most 1 (one) year from the date of non-approval. In the case where prospective Controlling Key Parties do not transfer part of their share ownership within the specified timeframe, they cannot exercise shareholder rights over all shares they own in the relevant LPIP until they transfer part of their share ownership. m. Transfers of share ownership as referred to in letters k and l above can be done through gifts or sales to parties other than those with family relationships up to the second degree, including to their business groups. Family relationships up to the second degree include:
1) biological/step/adopted parents;

2) biological/step/adopted siblings, along with their husbands or wives;
3) biological/step/adopted children;
4) biological/step/adopted grandparents;
5) biological/step/adopted grandchildren;
6) biological/step/adopted siblings of parents, along with their husbands or wives;
7) husbands/wives;
8) parents-in-law;
9) in-laws;
10) husbands/wives of biological/step/adopted children;
11) grandparents of husbands/wives;
12) husbands/wives of biological/step/adopted grandchildren; and
13) biological/step/adopted siblings of husbands/wives, along with their husbands or wives.
Prohibitions on transferring share ownership to parties as referred to in numbers 1) to 13) do not apply to transfers resulting from inheritance. n. LPIP must report share transfers as referred to in letters k and l to OJK at most 10 (ten) working days after GMS ratifies the transfer of share ownership; o. OJK may designate parties not allowed to receive share transfers as referred to in letters k and l. In the case where share transfers are made to parties not allowed to receive transfers:
1) the transfer is not considered a transfer of ownership;
2) LPIP is prohibited from recording the party receiving the transfer in the LPIP shareholder list; and
3) the party receiving the transfer does not obtain their rights as a shareholder.
p. OJK cancels approvals if, after approval is granted:

1) it is known that information or documents submitted during the competency and propriety assessment process were incorrect, thereby no longer meeting requirements; and/or
2) information obtained from other authorities causes the approved party to no longer meet requirements;
q. Managing Key Parties whose approvals are cancelled as referred to in letter p, regarding the relevant party, are subject to regulations as specified in number 1 letter o and number 2 letters h and i; r. Controlling Key Parties whose approvals are cancelled as referred to in letter p, regarding the relevant party, are subject to regulations as specified in number 1 letter n and number 2 letter l.
3. Re-submission of Prospective Managing Key Parties Determined as Not Approved:
a. Prospective Managing Key Parties not approved due to competency requirements may be nominated again at least 6 (six) months from the date of non-approval by OJK. b. Re-submission of prospective Managing Key Parties determined as not approved due to competency requirements as referred to in letter a must be accompanied by supporting documents proving that the re-nominated candidate has improved their competency.
V. LPIP INSTITUTIONAL STRUCTURE
1. LPIP shareholders must be Indonesian legal entities owned by:
a. Indonesian legal entities; or b. Indonesian legal entities in partnership with foreign legal entities.
2. Ownership as referred to in number 1 includes ownership based on inter-shareholder linkages based on, among others:
a. ownership relationships; and/or

b. the existence of cooperation or concerted actions to achieve common goals in controlling the LPIP (acting in concert) with or without a written agreement, so that together they have option rights or other rights to own LPIP shares.

Example of LPIP share ownership chart in accordance with the Appendix which is an integral part of this OJK Circular.

In the event that the legal entity holding LPIP shares is a public company and trades its shares on the stock exchange, the provisions as referred to in item 1 shall not apply.
LPIP has one Majority Controlling Principal. As an example, when LPIP is owned by PT “A” (48% ownership), PT “B” (48% ownership), PT. “C” (2% ownership), the General Meeting of Shareholders (RUPS) designates either PT “A” or PT “B” to have higher voting rights and be designated as the Majority Controlling Principal.
If it is agreed that no one controls more than the other:
a. the strategic direction of LPIP’s future development, including issues that may arise in the future, becomes a joint responsibility and is set forth in a letter of comfort that must be submitted to OJK. Regarding this matter, financial report consolidation may refer to financial accounting standards. b. both parties must maintain a sustainable partnership to ensure the continuity of LPIP’s performance and jointly commit to being the backbone in the future development of LPIP, including resolving issues occurring in LPIP (including but not limited to solvency, liquidity, and capital).
c. the LPIP business plan must be prepared and agreed upon jointly by both parties.

VI. LPIP LICENSING

Principle Approval
a. In order to obtain principle approval for preparing to establish an LPIP, one of the prospective LPIP shareholders must do the following:
1. submit an application for principle approval to OJK using the format in accordance with the Appendix which is an integral part of this OJK Circular; and
2. present to OJK regarding the entire plan for establishing the LPIP.
  b. The application as referred to in letter a item 1) must be accompanied by documents including:
3. draft deed of establishment of the limited liability company, including a draft articles of association containing at least:
  a) name and domicile; b) business activities; c) capital; d) ownership; e) authority, responsibility, and term of office of members of the Board of Commissioners and members of the Board of Directors; and f) clauses regulating that the appointment of members of the Board of Commissioners and members of the Board of Directors must first obtain approval from OJK;
4. ownership data in the form of a list of each prospective shareholder, accompanied by documents:
  a) details of the percentage of each share ownership in the LPIP; b) the latest deed of establishment and amendment of the articles of association of the prospective shareholder, which has received approval from the competent authority; c) Taxpayer Identification Number (NPWP)/Tax Registry/document that can be equated with it; d) information regarding the finances of the prospective shareholder for at least the last 3 (three) years. In the event that the prospective shareholder has been conducting business activities for less than 3 (three) years then:
  (1) the financial information provided is for the duration of its business activities; and (2) additional documents in the form of the parent company’s financial reports for at least the last 3 (three) years and the deed of amendment of the articles of association or deed of establishment of the parent company; e) information regarding the ownership of the controlling prospective shareholder up to the ultimate shareholder; and f) proof of having experience in the Credit Information Management industry for at least 3 (three) years for foreign parties.
5. a list of the composition of prospective members of the Board of Directors and members of the Board of Commissioners of the LPIP, accompanied by documents:
  a) recent 1 (one) month passport-sized photos, size 4x6 cm, one sheet; b) copy of the identity card of prospective members of the Board of Directors and members of the Board of Commissioners of the LPIP, including but not limited to Resident Identity Card (KTP), passport, or other valid identity documents; c) NPWP/Tax Registry/document that can be equated with it; d) curriculum vitae; e) a stamped declaration letter from each prospective member of the Board of Directors and prospective member of the Board of Commissioners of the LPIP stating that the respective person:
  (1) has never been sentenced for a criminal offense that has been decided by a court and has acquired permanent legal force, namely:
  (a) criminal offenses in the financial services sector whose sentence has been completed within the last 20 (twenty) years before nomination; (b) criminal offenses, namely criminal offenses listed in the Criminal Code (KUHP) and/or similar to the KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentence has been completed within the last 10 (ten) years before nomination; and/or (c) other criminal offenses with a prison sentence threat of 1 (one) year or more, including but not limited to corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, tax offenses, forestry offenses, environmental offenses, maritime offenses, and fisheries offenses, whose sentence has been completed within the last 20 (twenty) years before nomination, and is not currently prohibited from becoming a Principal, which is included in the list of those who do not pass. (2) commits to:
  (a) complying with applicable laws and regulations; (b) implementing good governance principles for the LPIP; (c) conducting healthy operational development of the LPIP; (d) maintaining the confidentiality and security of data and information; and (e) working professionally according to expertise in the position to be held. (3) is not recorded as a Debtor or Customer with a Non-Performing Facility or similar; (4) has never been declared bankrupt; (5) has never been a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was declared guilty of causing a company to be declared bankrupt based on a court decision within 5 (five) years before the date of application submission; and (6) specifically for prospective members of the Board of Directors, does not hold concurrent positions except in companies, organizations, or institutions that are non-profit as referred to in the OJK Regulation regarding Credit Information Management Institutions.
6. a plan for organizational structure and human resources, containing at least an organizational chart, horizontal and vertical responsibility lines, as well as positions and estimated number of human resources needed;
7. a business plan for the first 3 (three) years containing at least:
  a) management policies and strategies; b) projected financial reports along with the assumptions used; c) capital plan; d) information system technology development plan; e) plan for issuing products and/or conducting new activities; f) office opening plan; g) human resources and organizational development plan; and h) general overview of the use of Foreign Workers (TKA), supported by a feasibility study regarding market opportunities and economic potential;
8. a medium-term strategic plan of 3 (three) to 5 (five) years and a long-term plan of more than 5 (five) years;
9. a draft of the information technology system to be used, containing at least a draft of the information technology system architecture and information regarding hardware, software, and communication networks;
10. a draft of the Credit Data or Financing needs from Financial Institutions to be obtained from OJK in accordance with OJK regulations regarding reporting and debtor information requests through the financial information service system and this OJK Circular;
11. internal control system guidelines and guidelines for implementing good governance for the LPIP, containing at least procedures to secure and maintain the confidentiality of data and/or information, as well as decision-making and policy mechanisms;
12. policies and operational procedures;
13. proof of capital deposit of at least 100% (one hundred percent) of the minimum paid-up capital in the form of a copy of a deposit slip at a bank in Indonesia and in the name of “Board of Commissioners of the Financial Services Authority q.q. name of one of the prospective shareholders for the establishment of the relevant LPIP” with a note that disbursement can only be done after obtaining written approval from OJK;
14. a stamped declaration letter from the prospective shareholder that the source of funds used for LPIP ownership as referred to in item 11):
  a) does not come from credit or financing from banks and/or other parties; and b) does not come from the results of criminal offenses and for the purposes of money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction;
15. a stamped declaration letter covering the truthfulness of data and/or information submitted by the LPIP to OJK; and
16. other documents and/or declaration letters to support the documents as referred to in items 1) to 13) based on OJK requests, if necessary.
  c. In order to grant principle approval, OJK conducts:
17. research and analysis of the application documents;
18. analysis of potential and feasibility regarding:
  a) plan for organizational structure and human resources; b) business plan for the first 3 (three) years; c) medium and long-term strategic plans; d) draft of the information technology system to be used; e) draft of Credit Data or Financing needs from Financial Institutions to be obtained from OJK; f) internal control system guidelines and guidelines for implementing good governance for the LPIP; and g) policies and operational procedures, considering national interests, the direction and policies of Indonesia’s economic development, and OJK’s direction and policies including but not limited to financial industry needs and market saturation levels;
19. assessment of capability and propriety regarding controlling prospective shareholders, prospective members of the Board of Directors, and/or prospective members of the Board of Commissioners of the LPIP;
20. research into the source of capital deposit funds; and
21. other analyses based on OJK’s considerations.
  d. OJK’s approval or rejection of the principle approval application is given within a maximum of 60 (sixty) working days after the date all documents as referred to in letter b are received completely. e. In the event that the application documents as referred to in letter b are incomplete or do not comply with regulations or based on OJK’s assessment, the prospective LPIP shareholder must submit the completion and adjustment of application documents within a maximum of 20 (twenty) working days from the date of notification from OJK. f. In the event that the prospective LPIP shareholder does not fulfill the completion and adjustment of application documents as referred to in letter e, the prospective LPIP shareholder is deemed to have canceled the principle approval application.
Business License
a. The LPIP business license application is submitted to OJK using the format in accordance with the Appendix which is an integral part of this OJK Circular and accompanied by the following documents:
1. the deed of establishment of the limited liability company, containing articles of association that have been approved by the competent authority;
2. a list of shareholders along with details of each share ownership;
3. a list of the composition of members of the Board of Directors and members of the Board of Commissioners of the LPIP;
4. documents as referred to in item 1 letter b item 4), item 1 letter b item 5), item 1 letter b item 6), item 1 letter b item 8), item 1 letter b item 9), item 1 letter b item 10), item 1 letter b item 14), in the event of changes;
5. the architecture of the information technology system to be used;
6. proof of operational readiness, including at least:
  a) proof of ownership, control, and/or office lease agreements; b) list of fixed assets and inventory; c) photos of the office building and room layout; d) documents showing the readiness of the information system technology; e) examples of forms or documents to be used in LPIP operations; and f) LPIP’s NPWP;
7. a stamped declaration letter covering the truthfulness of data and/or information submitted by the LPIP to OJK; and
8. other documents and/or declaration letters to support the documents as referred to in items 1) to 7) based on OJK requests, if necessary.
  b. In order to grant the business license, OJK conducts:
9. research and analysis of the application documents, including documents that have undergone changes as referred to in item 2 letter a item 4);
10. assessment of capability and propriety, if changes occur;
11. assessment of operational readiness;
12. assessment of the information technology system to be used based on the architecture as referred to in item 2 letter a item 5), which can also be conducted by another party designated by OJK; and
13. other analyses based on OJK’s considerations.
  c. OJK’s approval or rejection of the business license application is given within a maximum of 40 (forty) working days after the date all documents as referred to in letter a are received completely.

VII. REASSESSMENT OF LPIP PRINCIPALS AND/OR EXECUTIVE OFFICERS

Reassessment Procedures
a. OJK conducts reassessment of Principals and/or executive officers based on evidence, data, and/or information obtained from supervision results or other information. b. Reassessment of Principals and/or executive officers as referred to in letter a is conducted with the following steps:
1. clarification of evidence, data, and/or information to the Principal and/or executive officer being reassessed;
2. determination and submission of the interim reassessment results to the Principal and/or executive officer being reassessed;
3. response from the Principal and/or executive officer being reassessed regarding the interim reassessment results; and
4. determination and notification of the final reassessment results to the Principal and/or executive officer being reassessed.
  c. The Principal and/or executive officer being reassessed is given the opportunity to submit responses to the request for clarification of evidence, data, and/or information as referred to in letter b item 1), within a maximum of 10 (ten) working days calculated from the date of the clarification request from OJK.
  d. In the event that the Principal and/or executive officer being reassessed does not use the right to submit clarification of evidence, data, and/or information within the time limit as referred to in letter c, OJK proceeds to the next step of the reassessment. e. The Principal and/or executive officer being reassessed is given the opportunity to submit responses to the interim reassessment results as referred to in letter b item 3), within a maximum of 10 (ten) working days calculated from the date of the OJK letter. f. In the event that the Principal and/or executive officer being reassessed does not use the right to submit responses to the interim reassessment results within the time limit as referred to in letter e, OJK determines the interim reassessment results to become the final reassessment results. g. In the event that OJK obtains new evidence, data, and/or information before the determination and notification of the final reassessment results as referred to in letter b item 4), OJK determines the final reassessment results by considering the new evidence, data, and/or information obtained. h. The determination of the final reassessment results as referred to in letter g is conducted while still referring to the process as referred to in letter b items 1) to 3).
  i. OJK determines the final reassessment results directly without following all steps, in the event that the Principal and/or executive officer being reassessed:
5. is proven to have committed a criminal offense that has been decided by a court and has acquired permanent legal force as referred to in the OJK Regulation regarding Credit Information Management Institutions; or
6. is proven to have been declared bankrupt and/or become a shareholder, member of the Board of Directors, member of the Board of Commissioners, or equivalent, who was declared guilty of causing a company to be declared bankrupt or have its business license revoked.
Final Reassessment Results
a. OJK determines the final reassessment results for Principals and/or executive officers with the following predicates:
1. pass; or
2. fail.
  b. The determination of the final reassessment results as referred to in letter a is conducted based on the level of involvement and/or responsibility of the Principal and/or executive officer being reassessed.
  c. OJK notifies the final reassessment results of Principals and/or executive officers in writing to the controlling Principal, LPIP, and the Principal and/or executive officer being reassessed.
  d. In addition to the parties as referred to in letter c, OJK may notify the final reassessment results of Principals and/or executive officers to other interested parties.
Follow-up of Reassessment Results
a. Parties who, at the time of reassessment, own, manage, supervise, and/or have significant influence on the LPIP as Principals and/or executive officers of the LPIP determined with a pass predicate, are declared to meet the requirements to remain as Principals and/or executive officers of the LPIP. b. Principals and/or executive officers of the LPIP determined with a fail predicate are subject to bans as referred to in Article 43 paragraph (2) and paragraph (3) of the OJK Regulation regarding Credit Information Management Institutions.
c. The imposition of a ban period on Principals and/or executive officers of the LPIP determined with a fail predicate as referred to in Article 44 of the OJK Regulation regarding Credit Information Management Institutions.
d. The consequences of imposition for Principals and/or executive officers of the LPIP determined with a “fail” predicate apply from the date of the OJK determination letter. e. Principals as referred to in Article 43 paragraph (2) letter a item 1, paragraph (2) letter b item 1, paragraph (3) letter a item 1, and paragraph (3) letter b item 1 of the OJK Regulation regarding Credit Information Management Institutions:
1. cannot take actions as a controlling Principal;
2. cannot exercise rights as a shareholder and such shares are not counted in the RUPS quorum; and
3. must transfer all share ownership within a maximum of 1 (one) year, from the date of being determined with a fail predicate.
  f. Principals who cannot become managing Principals and/or executive officers as referred to in Article 43 paragraph (2) letter a item 2, paragraph (2) letter b item 2, paragraph (3) letter a item 2, paragraph (3) letter b item 2, and paragraph (3) letter c of the OJK Regulation regarding Credit Information Management Institutions:
4. cannot take actions as a managing Principal and/or executive officer; and
5. must cease to be a managing Principal and/or executive officer.
  g. LPIP must follow up the consequences as referred to in letter f within a maximum of 3 (three) months from the date of notification from OJK. h. LPIP must report the follow-up as referred to in letter g to OJK within a maximum of 10 (ten) working days from:
6. the date of the RUPS meeting for the dismissal of the managing Principal; and/or
7. the date of dismissal of the executive officer.
  i. In the event that the managing Principal or executive officer as referred to in letter f still takes actions as a managing Principal or executive officer, the imposition period for the managing Principal or executive officer is extended by 20 (twenty) years.
  j. The controlling Principal who intentionally allows a failing managing Principal to take actions as a managing Principal is given a fail predicate with an imposition period of 20 (twenty) years, after first conducting a reassessment as referred to in the OJK Regulation regarding Credit Information Management Institutions. k. Board of Directors members who intentionally allow failing executive officers to take actions as executive officers are determined with a fail predicate with a ban period of 3 (three) years, after first conducting a reassessment as referred to in the OJK Regulation regarding Credit Information Management Institutions.
  l. Principals subject to consequences as referred to in Article 43 paragraph (2) and paragraph (3) of the OJK Regulation regarding Credit Information Management Institutions may submit a request for reconsideration of the fail predicate before the consequence period expires.
  m. The request for reconsideration as referred to in letter l may be submitted if it meets the following criteria:
8. there is new evidence, data, and/or information regarding the absence, or failure to submit clarification or response during the reassessment;
9. there is a court decision with permanent legal force stating that the party determined with a fail predicate is not proven to have committed a criminal offense or not proven to have been declared bankrupt and/or become a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was declared guilty of causing a company to be declared bankrupt or have its business license revoked;
10. as a consequence of the implementation of the Laws of the Republic of Indonesia, including but not limited to the implementation of regulations regarding tax amnesty; and/or
11. has served ¾ (three-quarters) of the consequence period and the Principal and/or executive officer of the LPIP:
  a) has no negative records during the fail declaration, including but not limited to not committing legal violations with penalties of more than 1 (one) year, not causing bankruptcy and/or becoming a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was declared guilty of causing a company to be declared bankrupt or have its business license revoked; and b) commits to contributing significantly to the strengthening or rescue of the LPIP industry, which is realized within a time period determined by OJK. The commitment to contribute is stated in the form of commitments and realization regarding capital increase or merger and/or acquisition of LPIP for the rescue or strengthening of LPIP, and/or other forms of contribution required. n. OJK has the authority to follow up or not follow up the request for reconsideration as referred to in letter l.

o. In the event that the request for review as referred to in letter m is followed up, the review is carried out through a re-evaluation mechanism in accordance with the provisions as referred to in this OJK Circular.

VIII. CHANGES IN PAID-IN CAPITAL, SHAREHOLDERS, BOARD OF DIRECTORS MEMBERS, AND/OR BOARD OF COMMISSIONERS MEMBERS

Increase in paid-in capital
a. LPIP submits a request for an increase in paid-in capital accompanied by attachments, namely:
1) proof of capital deposit; and
2) supporting documents.
b. The proof of capital deposit and supporting documents as referred to in letter a are as follows:
1) in the event that the LPIP's capital deposit increase is in the form of cash, the increase in paid-in capital as referred to in letter a must be placed in the form of a deposit at a General Bank in Indonesia by stating the name "Commissioners of the Financial Services Authority q.q. (name of LPIP)", and stating the name of the additional capital depositor and the information that the withdrawal can only be carried out after obtaining written approval from OJK.
Cash capital deposits are accompanied by proof of capital deposit and/or supporting documents as well as a sworn statement on sufficient stamp duty from the shareholder that the source of funds used in the context of the LPIP's capital deposit increase:
a) does not come from credit or financing from banks and/or other parties; and b) does not come from the proceeds of criminal acts and for the purposes of money laundering, terrorism financing, and financing of the proliferation of weapons of mass destruction.
2) in the event that the LPIP's capital deposit increase is in the form of other assets, accompanied by an independent valuation report on the assets handed over.
c. In the event that the increase in paid-in capital results in a takeover, the implementation procedures and supporting documents follow the takeover process as referred to in this OJK Circular.
d. OJK provides approval or rejection of the request for an increase in paid-in capital as referred to in letter a within a maximum of 30 (thirty) working days from the date the request along with the required documents according to the Appendix which is an integral part of this OJK Circular is received completely. e. In providing approval or rejection as referred to in letter d, OJK conducts research on the fulfillment of requirements, including:
1) research on the source of capital deposits;
2) assessment of competence and propriety for prospective Controlling Parties if the increase in paid-in capital results in a change in the Controlling Party in accordance with OJK Regulations regarding Credit Information Management Institutions; and
3) research on the financial performance and fulfillment of provisions in the LPIP and/or financial service institutions owned by the prospective Controlling Party.
f. After obtaining approval from OJK, LPIP submits a report regarding the increase in the amount of paid-in capital with reference to the format according to the Appendix which is an integral part of this OJK Circular. g. The report on the increase in paid-in capital is submitted to OJK no later than 10 (ten) working days after the date of the letter of notification of data changes and/or approval of the amendment to the Articles of Association from the competent authority.
Change in ownership composition
a. LPIP submits a request to OJK for a change in the ownership composition of LPIP, whether it results in or does not result in the replacement, reduction, and/or addition of the number of owners, with reference to the format according to the Appendix which is an integral part of this OJK Circular and accompanied by documents as follows:
1) the deed of establishment and the latest amendment to the Articles of Association of the prospective shareholder that has received approval from the competent authority;
2) information regarding the finances of the prospective shareholder for at least the last 3 (three) years. In the event that the shareholder conducts business activities for less than 3 (three) years then:
a) information regarding finances during the duration of its business activities; and b) additional documents in the form of the parent company's financial report for at least the last 3 (three) years and the deed of amendment to the Articles of Association or the deed of establishment of the parent company;
3) information regarding ownership from the prospective shareholder up to the ultimate shareholder;
4) a sworn statement on sufficient stamp duty regarding:
a) commitment to comply with applicable laws and regulations; b) high commitment to the development of healthy LPIP operations; and c) not recorded as a Debtor or Customer who has a Fund Provision Facility with a bad quality or that can be equated with it. b. In the event that the change in share ownership results in a takeover, the implementation procedures and supporting documents are carried out in accordance with this OJK Circular.
c. In order to provide approval for the change in ownership composition, OJK conducts:
1) research on completeness and analysis of documents as referred to in letter a; and
2) assessment of competence and propriety for prospective controlling shareholders.
d. OJK provides approval or rejection of the request for a change in ownership composition within a maximum of 30 (thirty) working days after the request documents are received completely. e. After obtaining approval for the change in ownership composition from OJK, LPIP holds a General Meeting of Shareholders (GMS) to decide on the new share ownership composition. f. The results of the GMS regarding the change in share ownership composition as referred to in letter e are reported to OJK no later than 10 (ten) working days after the GMS is held, accompanied by documents as follows:
1) minutes of the GMS;
2) the amendment to the Articles of Association made notarially;
3) proof of reporting the amendment to the Articles of Association as referred to in letter a number 2 letter b) to the competent authority; and
4) other supporting documents for the change in ownership, if necessary.
Change in the composition of members of the Board of Directors and/or members of the Board of Commissioners
a. In the event that LPIP will carry out a change in the composition of members of the Board of Directors and/or members of the Board of Commissioners, LPIP submits a request to OJK with reference to the format according to the Appendix which is an integral part of this OJK Circular and accompanied by documents as referred to in item VI number 1 letter b number 3. b. In order to provide approval for the change in the composition of members of the Board of Directors and/or members of the Board of Commissioners, OJK conducts:
1) research on completeness and analysis of documents as referred to in letter a; and
2) assessment of competence and propriety for prospective members of the Board of Directors and/or prospective members of the Board of Commissioners.
c. OJK provides approval or rejection of the request for a change in the composition of members of the Board of Directors and/or members of the Board of Commissioners within a maximum of 30 (thirty) working days since all documents are received completely.
d. In the event that the appointment of members of the Board of Directors and/or members of the Board of Commissioners is not carried out within a period of 60 (sixty) working days after OJK approval, then the OJK approval becomes invalid. e. LPIP submits a report to OJK regarding:
1) the appointment of members of the Board of Directors and/or members of the Board of Commissioners no later than 10 (ten) working days since the date of the GMS; and/or
2) the dismissal and/or resignation of members of the Board of Directors and/or members of the Board of Commissioners, no later than 10 (ten) working days since the effective date of the dismissal and/or resignation of the respective party;
Merger, consolidation, or takeover
a. Each LPIP that will carry out a merger, consolidation, or takeover with another LPIP must obtain OJK approval. b. The Board of Directors of the LPIP that will carry out a merger, consolidation, or takeover prepares a plan for the merger, consolidation, or takeover based on the provisions of laws and regulations. The Board of Directors of the LPIP submits a request proposal for the plan for the merger, consolidation, or takeover to OJK.
c. The process of merger, consolidation, or takeover
1) Merger or consolidation of LPIP
a) A request to obtain approval for a merger or consolidation is submitted by each LPIP to OJK. b) The request for approval for a merger or consolidation to OJK is accompanied by data on the plan for the merger or consolidation and/or documents including at least:
(1) approval from the GMS regarding the plan for the merger or consolidation; (2) information regarding the name of shareholders, number of shares, nominal amount, and percentage of share ownership at the time of the request for merger or consolidation and after the merger or consolidation; (3) information regarding share ownership up to the ultimate shareholder; (4) draft of the deed of amendment to the Articles of Association or deed of establishment including the Articles of Association after the merger or consolidation as well as the reasons and explanation of the merger or consolidation from the Board of Directors of the LPIP that will carry out the merger or consolidation; (5) information regarding the latest finances of the prospective shareholder of the LPIP resulting from the merger or consolidation, for at least the last 3 (three) years. In the event that the prospective shareholder conducts business activities for less than 3 (three) years then:
(a) the information regarding finances provided is during the duration of its business activities; and (b) additional documents in the form of the parent company's financial report for at least the last 3 (three) years and the deed of amendment to the Articles of Association or deed of establishment of the parent company. (6) the current management structure and the planned management structure after the merger or consolidation; (7) the business plan for the first 3 (three) years after the merger or consolidation; (8) all plans for fulfilling obligations after the implementation of the merger or consolidation for the LPIP resulting from the merger and the LPIP that is dissolved; and (9) other documents, if necessary. c) In order to provide approval for the merger or consolidation, OJK conducts:
(1) analysis of the plan for the merger or consolidation and/or documents as referred to in letter b); and (2) assessment of competence and propriety for prospective controlling shareholders, prospective members of the Board of Directors, and/or prospective members of the Board of Commissioners of the LPIP resulting from the merger or consolidation. d) OJK provides approval or rejection of the request for a merger or consolidation within a maximum of 60 (sixty) working days after the request documents are received completely. e) LPIP that has obtained approval for the merger or consolidation from OJK, subsequently submits a request for the merger or consolidation to the competent authority in accordance with provisions regarding mergers and consolidations. f) The approval for the merger or consolidation provided by OJK becomes effective since:
(1) the date of approval of the amendment to the Articles of Association by the competent authority; or (2) the date of registration of the deed of merger or consolidation and the deed of amendment to the Articles of Association in the company register if the amendment to the Articles of Association does not require approval from the competent authority. g) Since the merger or consolidation becomes effective, the LPIP resulting from the merger or consolidation:
(1) submits a report on the implementation of the merger or consolidation to OJK no later than 10 (ten) working days since the merger or consolidation becomes effective, accompanied by documents as follows:
(a) a copy of the amendment to the Articles of Association that has been approved by the competent authority; or (b) a copy of the registration of the deed of merger or consolidation and the deed of amendment to the Articles of Association in the company register if the amendment to the Articles of Association does not require approval from the competent authority; (2) announces the LPIP resulting from the merger or consolidation in at least 1 (one) daily newspaper in Indonesian with national circulation, the official website of the LPIP, the official social media account of the LPIP, and in the Supplement of the State Gazette of the Republic of Indonesia no later than 10 (ten) working days since the date the merger or consolidation license becomes effective; and (3) carries out other administrative actions related to the LPIP that is dissolved due to the merger or consolidation in accordance with the provisions of laws and regulations, including matters related to the administrative completeness of parties who will access information from the LPIP that is dissolved due to the merger or consolidation.
2) Takeover of LPIP
a) A request to obtain approval for a takeover is submitted by the prospective shareholder who will take over the LPIP and the LPIP that will be taken over to OJK. b) The request for takeover as referred to in letter a) is accompanied by data on the plan for the takeover and/or documents at least:
(1) approval from the GMS regarding the plan for the takeover; (2) information regarding the name, number of shares, nominal amount, and percentage of share ownership at the time the request for takeover is submitted and after the takeover; (3) information regarding share ownership up to the ultimate shareholder; (4) draft of the deed of takeover and reasons for the takeover from the shareholder who will take over and the LPIP that will be taken over; (5) information regarding the latest finances of the prospective shareholder who will take over for at least the last 3 (three) years. In the event that the prospective shareholder conducts business activities for less than 3 (three) years then:
(a) information regarding finances during the duration of its business activities; and (b) additional documents in the form of the parent company's financial report for at least the last 3 (three) years and the deed of amendment to the Articles of Association or deed of establishment of the parent company; (6) the business plan for the first 3 (three) years after the takeover; and (7) other documents if necessary. c) In order to provide approval for the takeover, OJK conducts:
(1) analysis of the data on the plan for the takeover and/or documents as referred to in letter b); and (2) assessment of competence and propriety for prospective controlling shareholders as the party that will take over the LPIP. d) OJK provides approval or rejection of the request for a takeover within a maximum of 60 (sixty) working days after the request documents are received completely. e) LPIP that has obtained approval from OJK, follows up on the takeover request process in accordance with the provisions of laws and regulations regarding takeovers. f) The takeover of LPIP becomes effective since:
a) the date of approval of the amendment to the Articles of Association by the competent authority; or b) the date of registration of the deed of takeover and the deed of amendment to the Articles of Association in the company register if the amendment to the Articles of Association does not require approval from the competent authority. g) Since the takeover becomes effective, the LPIP that is taken over:
a) submits a report on the implementation of the takeover to OJK no later than 10 (ten) working days since the takeover becomes effective, accompanied by documents as follows:
(1) a copy of the amendment to the Articles of Association that has been approved by the competent authority; or (2) a copy of the registration of the deed of takeover and the deed of amendment to the Articles of Association in the company register if the amendment to the Articles of Association does not require approval from the competent authority; and (3) announces the LPIP resulting from the takeover in at least 1 (one) daily newspaper in Indonesian with national circulation, the official website of the LPIP, the official social media account of the LPIP, and in the Supplement of the State Gazette of the Republic of Indonesia no later than 10 (ten) working days since the date the takeover license becomes effective.

IX. RIGHTS AND OBLIGATIONS OF LPIP

In carrying out its operations, LPIP has the obligation:
a. to maintain the accuracy, timeliness, security, and confidentiality of data; b. to have a reliable system;
c. to have operational policies and procedures that are formulated in written guidelines; and
d. to have guidelines that must be complied with by every party using Credit Information.
LPIP must have operational policies and procedures that are formulated in written guidelines at least:
a. steps for data security activities, which contain among others:
1) data security to maintain the accuracy, validity, timeliness, security, and confidentiality of data while still paying attention to applicable provisions. This security function is carried out so that the managed data is protected from loss, damage, misuse, and/or theft;
2) management of assets related to data security, for example:
a) security of computer devices, servers, and buildings; b) operational security; and c) security of information technology aspects (aspects of security, confidentiality, reliability, system and data availability, and authenticity of information technology systems);
3) identification of risk sources that may arise in LPIP operational activities; and
4) policies in handling information security issues;
b. regulation of access levels, which contains at least:
1) control and management of access rights adequately according to the authority established, including prohibitions and sanctions for misuse of access rights;
2) appointment and granting of authority to officers related to data and information system management; and
3) separation of access rights for input, process, and output functions;
c. data change procedures, which contain at least:
1) regulation of parties who can carry out data changes;
2) procedures and mechanisms for data changes;
3) recording of data change activities; and
4) officials responsible for data changes;
d. security procedures for Credit Information are carried out with activities at least as referred to in letter a; e. business continuity plan, which contains at least:
1) activity plans to ensure that the business continuity plan can be implemented effectively to ensure that LPIP activities can continue to run during disruptions;
2) implementation of tests on the business continuity plan for all application systems and infrastructure at least 1 (one) time in 1 (one) year involving users and reported to OJK;
3) implementation of evaluations on the business continuity plan at least 1 (one) time in 1 (one) year; and
4) implementation of updates to the business continuity plan, if necessary;
f. end-user computing regulation, which contains at least:
1) use of end-user computing for functions outside the main functions of the LPIP system; and
2) monitoring of the development and use of end-user computing applications developed;
g. data recovery plan, which contains at least the steps to be taken in the event of a disaster to ensure the operational continuity of LPIP; h. monitoring of operations including audit trails, among others carried out with monitoring of logs for every activity in the system;
i. procedures for providing Credit Information, which contain at least:
1) regulation of parties who can obtain Credit Information;
2) the existence of supporting documents in the form of printed copies, electronic documents, or other forms; and
3) the method of providing Credit Information which contains at least procedures, requirements, administration, and costs of providing Credit Information;
j. procedures for handling and resolving complaints in accordance with the provisions in this OJK Circular; and k. data retention schedule accompanied by provisions that in the event of license revocation, the established retention schedule will automatically end.
LPIP has guidelines that must be complied with by every party using Credit Information, regulating at least:
a. the relationship between LPIP and parties using Credit Information, which contains at least:
1) the rights and obligations of each party;
2) the purpose and limitations of the use of Credit Information;
3) the mechanism for handling and resolving complaints; and
4) the mechanism for dispute resolution.
b. the relationship between LPIP and data sources, which contains at least:
1) the rights and obligations of each party;
2) the purpose and limitations of data management;
3) the mechanism for data updating and correction;
4) the obligation of data sources to guarantee the legality of data use in accordance with applicable provisions;
5) the obligation of data sources to notify Debtors or Customers in writing regarding the utilization of Credit or Financing Data and/or Other Data by LPIP, OJK, and/or users of Credit Information based on the provisions of laws and regulations;
6) the mechanism for handling and resolving complaints; and
7) the mechanism for dispute resolution.

X. DATA MANAGEMENT BY LPIP

Data sources and flow
a. Credit or Financing Data obtained from OJK
1) Types of Credit or Financing Data provided by OJK to LPIP in accordance with OJK provisions regarding reporting and requests for debtor information through the financial information service system.
2) Scope of Credit or Financing Data in the Financial Information Service System (SLIK) provided to LPIP as referred to in Article 49 paragraph (2) of OJK Regulation regarding Credit Information Management Institutions, covers Fund Provision Facilities as follows:

No.	Scope of Credit and/or Financing Data	Description
1	All Credit or Financing Data for the category of Debtors - Micro, Small, and Medium Enterprise Debtors.	All credit or financing facilities, including joint accounts (i.e., segments F01 and F02 in accordance with OJK provisions regarding reporting and requests for debtor information through the financial information service system) with the category of Debtors - Micro, Small, and Medium Enterprise Debtors.
2	Credit or Financing Data for the category of Debtors - not micro, small, and medium enterprise debtors up to IDR 5,000,000,000 (five billion rupiah)	- Credit or financing facilities, including joint accounts (i.e., segments F01 and F02 in accordance with OJK provisions regarding reporting and requests for debtor information through the financial information service system) for Debtors other than the category of Micro, Small, and Medium Enterprise Debtors who have a limit up to IDR 5,000,000,000 (five billion rupiah).

Securities facilities (i.e., segment F03 in accordance with OJK provisions regarding reporting and requests for debtor information through the financial information service system) with a nominal value up to IDR 5,000,000,000 (five billion rupiah).
Irrevocable L/C facilities (i.e., segment F04 in accordance with OJK provisions regarding reporting and requests for debtor information through the financial information service system) with a limit up to IDR 5,000,000,000 (five billion rupiah).
Guarantee facilities provided (i.e., segment F05 in accordance with OJK provisions regarding reporting and requests for debtor information through the financial information service system) with a limit up to IDR 5,000,000,000 (five billion rupiah).
Other facilities (i.e., segment F06 in accordance with OJK provisions regarding reporting and requests for debtor information through the financial information service system) |

No. Data Coverage
Credit and/or
Financing
Description regarding reporting and requests for de debtor information through the financial information service system) with a nominal value up to Rp5,000,000,000 (five billion rupiah). Debtor Information obtained by LPIP from the Financial Information Service System does not include facilities for the provision of funds with a condition code of write-off and debt write-off, as well as collateral with the type of giro, savings, and deposits.
3) In order to obtain Credit or
Financing Data as referred to in item 1) and item 2), LPIP requests Debtor or Customer information through SLIK using an interactive inter-application mechanism between LPIP and SLIK, as follows:
a) LPIP transmits information for data matching search, namely:
1) Exact Matching, namely:
Type of Debtor or Customer
Debtor or
Customer Information
Individual
Debtor or Customer Identity Number
(NIK or Passport Number).
Corporate
Debtor or
Customer
Debtor or Customer Identity Number
(Tax ID Number, TaxID/number of a similar type).

2) Similar Matching, which is optional, namely:
Type of Debtor or Customer
Debtor or
Customer Information
Individual
Debtor or Customer Name
Date of Birth
Place of Birth
Tax ID Number
Corporate
Debtor or
Customer
Company Name
Date of Establishment
Place of Establishment b) If data is found, the final result of the request for Debtor or Customer information will be obtained by LPIP in the form of feedback data (information) from SLIK as regulated by OJK. c) In order to administer access rights to obtain data:
(1) LPIP submits a list of names of employees and/or officials authorized to obtain user access rights of at least 2 (two) people and at most 3 (three) people.
(2) OJK grants access rights to employees and/or officials authorized via automatic email accompanied by a security code (password). The employees and/or officials mentioned must change the security code no later than 3 (three) days since the email was sent. In the event of changes to the employees and officials authorized as referred to in item (1), LPIP reports the changes to OJK accompanied by a request to obtain access rights and security codes (passwords) for the new employees and officials no later than 1 (one) working day since the change occurred.

4) Requests for Debtor or Customer information as referred to
in item 2) shall be implemented no later than November 30, 2023.
5) To obtain Debtor or Customer information from
OJK, LPIP prepares a data reception system that is consistent with the information system technology used by OJK, including notification of receipt and error data validation. LPIP must independently record requests for Debtor or Customer information, whether data is found or not found, for the purpose of audit trail.
6) After obtaining the principle approval for the business establishment process, LPIP will receive an example of Debtor or Customer information from OJK used for internal technical preparation by LPIP.
7) After obtaining a business license from OJK, LPIP begins to
submit requests for Debtor or Customer information to OJK no later than 60 (sixty) working days counted from the date the business license is issued.
8) Offline Data Request and Acquisition
Offline data requests and acquisitions are conducted as follows:
a) Offline data requests and acquisitions are conducted if online data requests and acquisitions cannot be executed due to network constraints. b) Offline data requests and acquisitions as referred to in letter a) are conducted using devices and networks available at OJK. c) In order to process the identification of employees and/or officials authorized to obtain data offline, LPIP issues a letter of assignment to the employees and/or officials mentioned, which is subsequently submitted to OJK. b. In order to expand and enrich data coverage, LPIP can cooperate with Financial Institutions and/or non-Financial Institutions to obtain Credit or Financing Data and/or Other Data based on:
1) an agreement between LPIP and Financial Institutions
and/or non-Financial Institutions that contains at least the provisions as referred to in item IX item 3 letter b; and
2) provisions of legislation, including provisions of legislation regarding
consumer protection, provisions of legislation regarding public information openness, and provisions of legislation in the financial services sector.
2. Cost of Data Acquisition
a. LPIP is subject to data acquisition costs, calculated as follows:
1) a subscription fee of IDR 150,000,000.00 (one hundred fifty
million rupiah) per month and gaining access to 1,000,000 (one million) Debtor or Customer information; and
2) a fee of IDR 2,000.00 (two thousand rupiah) per
Debtor or Customer information for access above 1,000,000 (one million) Debtor or Customer information.
Example of data acquisition cost calculation according to the Appendix which is an integral part of this OJK Circular. b. Payment of data acquisition costs as referred to in letter a) is conducted in 4 (four) stages, calculated as follows:
1) Payment of data acquisition costs for Quarter I is invoiced
no later than April 5 and paid no later than April 30 for SLIK data access for January, February and March of the current year;
2) Payment of data acquisition costs for Quarter II is invoiced
no later than July 5 and paid no later than July 31 for SLIK data access for April, May and June of the current year;

3) Payment of data acquisition costs for Quarter III is invoiced
no later than October 5 and paid no later than October 31 for SLIK data access for July, August and September of the current year; and
4) Payment of data acquisition costs for Quarter IV is invoiced
no later than January 5 and paid no later than January 31 of the following year for access to SLIK data for October, November and December of the current year.
If the due date for invoicing and payment falls on a Saturday, Sunday, or public holiday, then payment is made on the next working day.
c. Calculation of data acquisition costs as referred to
in letter a) does not include tax obligations if applicable. d. Deposit of data acquisition costs follows the mechanism regulated in OJK regulations regarding the mechanism for payment of financial services authority levies. e. LPIP is subject to a subscription fee of IDR 150,000,000.00 (one hundred fifty million rupiah) per month since the issuance of this Circular for SLIK data provided by OJK periodically according to OJK regulations regarding reporting and de debtor information requests through the financial information service system up until the request for Debtor or Customer information through the interactive inter-application mechanism between LPIP and SLIK as referred to in item 1 letter a item 2) is available. f. For LPIPs that commence their business activities after January, the first periodic cost payment is calculated pro-rata until the end of the current quarter, and for the next quarter it will be charged as referred to in letter b. g. If necessary, OJK may determine adjustments to the values as referred to in letter a) at any time by considering the development and needs of LPIP and the financial industry as a whole.

Invoicing of Data Acquisition Costs
a. Notification of invoicing and payment following the mechanism as referred to in item 2 letter b will be communicated via letter and/or electronic mail to LPIP. b. In the event that LPIP does not pay until the deadline for quarterly payment, OJK will send a reminder letter to make payment no later than 15 (fifteen) days since the date of the first reminder.
c. In the event that LPIP does not pay until the deadline
as referred to in letter b, OJK issues a second warning letter with a payment period no later than 15 (fifteen) days since the date of the second warning letter. d. In the event that LPIP does not pay until the deadline as referred to in letter c, OJK closes access to requests for Debtor or Customer information SLIK data to LPIP no later than 5 (five) days after the deadline of the second warning letter.
Acquisition of LPIP Data by OJK
a. In the event that OJK requests Credit or Financing Data and/or Other Data directly from LPIP and/or requests LPIP to generate Credit Information based on specific categories, then LPIP provides such data according to the specifications requested by OJK, among others format, type, and period of Credit or Financing Data and/or Other Data. b. Submission of Credit or Financing Data and/or Other Data to OJK can be conducted online and/or offline.
c. If in the Credit or Financing Data and/or Other Data and/or Credit Information based on specific categories
received by OJK there are errors, then LPIP corrects such data.
Data Management
a. To ensure that notification of the use of Credit or Financing Data and/or Other Data as referred to in item IX item 3 letter b item 5) which is contained in the agreement has been implemented by the data source to each respective end data owner, LPIP requests and administers proof of notification including a recapitulation of notification regarding the use of Credit or Financing Data and/or Other Data to the end data owner. b. In managing Credit or Financing Data and/or Other Data, LPIP can update data if:
1) the data source cannot update data
because the data source's business license is revoked or technically unable to update data due to other reasons; or
2) there is a court decision that has obtained permanent legal force ordering LPIP to update data.
c. Data updating by LPIP as referred to in letter b item 1) is conducted based on a written request from
the appointed party, Financial Institution, non-Financial Institution, the respective end data owner, containing at least:
1) a request to update data accompanied
by reasons and supporting evidence; and
2) the data requested to be updated accompanied by
an explanation. d. In order to maintain accuracy, currency, security, and confidentiality of data, the placement of LPIP servers and databases in the territory of the Republic of Indonesia is subject to provisions of legislation regarding electronic information and transactions. The placement of servers and databases is not limited to the placement of goods or physical assets, but also includes management of such servers or databases which must be conducted within the territory of the Republic of Indonesia. Included in servers and databases are data centers (Data Center/DC) and disaster recovery centers (Disaster Recovery Center/DRC). The location of placement of servers and databases is reported to OJK.
XI. CREDIT INFORMATION AND ADMINISTRATION OF CREDIT INFORMATION REQUESTS
In order to obtain Credit Information from LPIP, parties
who wish to obtain Credit Information as referred to in Article 66 paragraph (1) of OJK Regulations regarding Credit Information Management Institutions have documents that serve as the basis for the request for Credit Information (underlying document) relevant to the purpose of obtaining Credit Information, namely:
a. to support the smoothness of the process of providing Facilities for the Provision of Funds, the documents managed include credit application applications both digital-based and in the form of offline applications as well as documents of prospective Debtors, namely:
1) For Individual Debtors or Customers, including
ID cards for Indonesian Citizens (WNI) or passports for Foreign Citizens (WNA).
2) For Corporate Debtors or Customers, including
Tax ID Numbers, company establishment deeds, and/or changes in the last articles of association containing the composition and authority of the board of directors, articles of association documents as a basis for verifying the connection with the Debtor. b. To apply credit or financing risk management, the documents managed include among others:
1) a nominative list of existing Debtors;
2) audit planning and implementation documents; and/or
3) Debtor complaint forms and Debtor identity documents
(ID card/Passport for individuals and Tax ID Number for corporations) for handling Debtor complaints.
c. To identify Debtor quality in order to
meet OJK or other competent party regulations, the documents managed include among others a nominative list of existing Debtors; d. For human resource management on the part of parties who wish to obtain Credit Information, the documents managed include among others:
1) employee and/or prospective employee identity documents
including ID cards for WNI or passports for WNA;
2) application forms or job application letters for prospective employees;
and/or
3) lists of existing employees.
e. For verification in the context of cooperation between parties who wish to obtain Credit Information with third parties (for example for partner selection, agents, merchants, or vendors), the documents managed include among others:
1) third-party identity documents (ID card/Passport for
individuals and Tax ID Number for corporations);
2) application documents as prospective vendors and vendor identity documents; and/or
3) offer letters accompanied by supporting documents for contracts.
2. The documents that serve as the basis for the request for Credit Information
(underlying document) reflect the approval of the Debtor or Customer that their personal data will be accessed by the party obtaining Credit Information through LPIP.
3. In the event that a request for Credit Information by a Debtor or Customer is authorized to another party, then:
a. the authorized party submits a request by submitting supporting documents including an original stamped power of attorney, photocopies of the identity of the Debtor or Customer and the identity of the authorized party; and b. the power of attorney is only valid for 1 (one) request for Credit Information.
4. In the event that the power of attorney is in digital form, it must meet the provisions of legislation regarding electronic information and transactions.
5. LPIP provides Credit Information based on the purpose of information use as referred to in OJK Regulations regarding Credit Information Management Institutions according to the initial information identification submitted by members and/or parties who wish to obtain Credit Information.

6. The procedure for identifying the initial information purpose of information use and its administration follows guidelines compiled by each respective LPIP.
7. After the initial identification process and LPIP provides Credit Information, the party wishing to obtain Credit Information submits the documents that serve as the basis for the request for Credit Information (underlying document) as referred to in item 1 to LPIP no later than 5 (five) working days after the provision of Credit Information by LPIP.
The initial information and administration of documents that serve as the basis for the request for Credit Information (underlying document) are sources of clarification and proof of the suitability of the purpose of use of Credit Information if needed, and will become one of the audit scopes conducted by internal and external auditors of LPIP.
8. LPIP provides Credit Information based on the initial identification as referred to in item 2 and members and/or parties who wish to obtain Credit Information submit the documents that serve as the basis for the request for Credit Information (underlying document) as referred to in item 4 starting from July 1, 2023.
9. Requests for Credit Information by other parties in the context of implementing provisions of legislation and/or based on a memorandum of understanding between LPIP by submitting the purpose and objective of the request for Credit Information and the name of the authorized official.
XII. HANDLING AND RESOLUTION OF COMPLAINTS
1. In order to handle and resolve complaints from Debtors or Customers, LPIP takes steps in accordance with policies and procedures for handling and resolving complaints which include at least:
a. receipt of complaints, both orally and in writing; b. handling and resolution of complaints which include at least:
1) investigation of the complained issues based on documents and/or data owned by
LPIP;
2) coordination with parties providing Credit or Financing Data and/or Other Data;
3) correction of inaccuracies in the processed results of Credit or Financing Data and/or Other Data; and
4) resolution timeframes;
c. monitoring of the handling and resolution of complaints; and
d. organizational devices handling complaints formed in accordance with the scale and complexity of LPIP's business activities.
2. LPIP conducts socialization or publication including regarding
the benefits of Credit Information and procedures for complaints regarding data inaccuracies through websites as proof of transparency to the public, specifically to increase public awareness regarding the importance of the accuracy of Credit or Financing Data and/or Other Data contained in Credit Information.
3. In the event of a complaint from a Debtor or Customer regarding
data inaccuracies caused by LPIP, LPIP resolves or handles the complaint no later than 20 (twenty) working days since the date of receipt of the complaint.
In the event that LPIP cannot resolve the Debtor or Customer complaint within that timeframe, LPIP can request an extension of the complaint resolution timeframe to the Debtor or Customer no later than 20 (twenty) working days. Requests for extension of the timeframe are submitted to the Debtor or Customer 5 (five) working days before the expiration of the complaint resolution deadline.
4. The results of complaint resolution or handling are communicated by LPIP to the Debtor or Customer in writing and/or using information technology media as agreed upon with the Debtor or Customer.
5. In the event of a complaint from a Debtor or Customer due to
data inaccuracies provided by Financial Institutions as data sources, LPIP notifies the Financial Institution data source with the following provisions:
a. in the event that the Financial Institution data source is a member of LPIP, then complaints regarding such inaccuracies are submitted directly to the respective Financial Institution with a copy to OJK; or b. in the event that the Financial Institution data source is not a member of LPIP, then LPIP forwards the complaint regarding such inaccuracies to OJK for subsequent forwarding to the Financial Institution data source.
6. In following up on notifications as referred to in item 5, the Financial Institution data source is subject to provisions issued by each respective competent authority regarding the handling of complaints from Debtors or Customers.
7. In the event that corrections to data that are the subject of complaints are necessary, the Financial Institution data source submits corrected data with the following provisions:
a. in the event that the inaccurate data is data submitted through OJK, then the Financial Institution data source submits corrections to such data through OJK; or b. in the event that the inaccurate data is data submitted directly to LPIP, then the Financial Institution data source submits corrections to such data directly to LPIP.
8. In the event of a complaint from a Debtor or Customer due to
data inaccuracies provided by non-Financial Institutions as data sources, LPIP notifies the non-Financial Institution data source with a copy to OJK and the authority overseeing/competent (if any).

XIII. SUPERVISION

Supervision of LPIPs conducted by OJK directly and/or indirectly aims to ensure that all business activities of LPIPs are conducted in accordance with OJK regulations and other relevant provisions of legislation.
Direct supervision is conducted by OJK through periodic and ad hoc examinations when necessary with the following provisions:
a. Examinations cover the technology used, governance, compliance with provisions of legislation, data security, and complaint handling, as well as other matters required by the Financial Services Authority. b. Periodic examinations are conducted at least once every 1 (one) year with an examination scope covering at least:
1) fulfillment of at least security aspects,
confidentiality, reliability, system and data availability, as well as authenticity of the information technology used by LPIP;
2) fulfillment of OJK regulations and other relevant provisions of legislation, at least regarding data management, systems, confidentiality and security;
3) accuracy of reports submitted to OJK; and
4) application of policies and operational procedures.
c. Ad hoc examinations in the event of need for verification of indirect supervision results and/or in the event of indications of deviations in the implementation of LPIP's business activities.
d. In order to conduct examinations, OJK may appoint other parties with the following requirements:
1) legal entity status;
2) not an affiliated party of LPIP;
3) independent;
4) competent in their field; and
5) understanding of provisions of legislation.
Examinations conducted by other parties are only conducted for specific matters as stated in the letter of assignment from OJK.
Indirect supervision is conducted by OJK through analysis and evaluation of written reports submitted by LPIP to OJK. LPIP submits complete, correct, and accurate reports, consisting of monthly reports, quarterly reports, semi-annual reports, annual reports, annual business plans, and other incidental reports.
Provisions for the compilation and submission of monthly reports, quarterly reports, semi-annual reports, annual reports, and annual business plans are as follows:
a. reports are made by the LPIP headquarters on a consolidated basis; b. reports are compiled among others guided by formats according to the Appendix which is an integral part of this OJK Circular;
c. reports are submitted to OJK online in electronic data form, offline in the form of printed document copies, and/or other methods determined by OJK;
d. reports are deemed received according to the receipt date by OJK; e. specifically for annual reports, the reported matters include at least:
1) general information regarding management, ownership,
business development, and management reports;
2) annual financial reports containing financial position reports, income statements, statements of changes in equity, cash flow statements, and notes to the financial statements;
3) opinions from public accountants on annual financial reports;
4) governance application reports;
5) other disclosure aspects mandated in applicable financial accounting standards; and
6) reports on the use of foreign workers.
f. annual business plans contain at least:
1) executive summary;
2) current LPIP performance;

3) management policies and strategies;
4) projected financial statements along with the assumptions used for the next 3 (three) years. This section also elaborates on the macro and micro assumptions used in compiling the aforementioned financial projections;
5) capital planning;
6) information system technology development plans;
7) plans for issuing products and/or conducting new activities;
8) office opening plans;
9) human resources and organizational development plans;
10) plans for utilizing foreign labor; and
11) other matters.

XIV. CESSATION OF BUSINESS ACTIVITIES AND REVOCATION OF BUSINESS LICENSES

Cessation of business activities and revocation of business licenses based on LPIP's application

a. In the event that an LPIP intends to cease its business activities, the LPIP submits a written application for cessation of business activities to the OJK, following the format in the Appendix which is an integral part of this OJK Circular, accompanied by the following documents:
1) a notarial copy of the Minutes of the General Meeting of Shareholders (RUPS) regarding the LPIP's plan to cease business activities;
2) reasons for cessation;
3) a plan to settle all obligations (action plan) of the LPIP, including at least:
a) a plan to settle complaints from Debtors or Customers regarding data inaccuracies caused by LPIP errors or data source errors; b) a plan to transfer Credit Data or Financing Data and/or Other Data to the OJK or another party designated by the OJK; c) a plan for data destruction in accordance with applicable legislation; d) a plan to terminate agreements between the LPIP and other parties; and e) a plan to settle other obligations, including payment of due taxes, payment of obligations to other parties, payment of due salaries, payment of office costs, and other relevant costs;
4) the latest financial statements; and
5) proof of tax settlement based on the examination results of the Tax Service Office for the last 3 (three) years prior to the application date.

b. After receiving the cessation of business activities letter from the OJK, the LPIP carries out the following:
1) ceases all LPIP business activities;
2) announces the cessation of business activities as an LPIP and the LPIP's plan to settle obligations in 1 (one) daily newspaper with national circulation, the LPIP's official website, and the LPIP's official social media accounts at least 10 (ten) working days from the date of issuance of the cessation of business activities letter;
3) immediately settles all LPIP obligations; and
4) appoints a public accounting firm to verify the settlement of LPIP obligations.

c. If all LPIP obligations as referred to in letter b have been settled, the LPIP submits an application for revocation of the business license to the OJK, following the format in the Appendix which is an integral part of this OJK Circular, accompanied by a report containing at least:
1) implementation of the cessation of business activities;
2) implementation of the announcement of the cessation of LPIP business activities;
3) implementation of the settlement of LPIP obligations;
4) verification report from the public accounting firm regarding the settlement of LPIP obligations; and
5) a stamped declaration letter from shareholders stating that the steps to settle LPIP obligations have been completed and that any future claims will be the responsibility of the shareholders.

d. Based on the application for revocation of the business license from the LPIP, the OJK conducts research and/or examination of the settlement of all LPIP obligations to ensure compliance with the implementation of the settlement of LPIP obligations as referred to in letter a number 3).

e. Based on the research and/or examination as referred to in letter d, the OJK issues a decision letter revoking the LPIP's business license.

Revocation of Business License by OJK

a. The OJK revokes the LPIP's business license in the event:
1) the LPIP violates OJK regulations with sanctions in the form of revocation of the business license; and/or
2) there is a final and binding court decision that causes the LPIP to be unable to conduct its business activities.

b. The revocation of the LPIP's business license as referred to in letter a is carried out by issuing a decision letter.

c. The OJK's decision letter revoking the business license includes, among others, an order to destroy data.

d. After revoking the business license, the OJK announces the revocation of the business license on the OJK website.

The procedure for data destruction is implemented as follows:

a. In the event that an LPIP's business license is revoked based on the LPIP's application, the data destruction activity plan is submitted together with the application for cessation of business activities by the LPIP.

b. The data destruction plan as referred to in letter a contains at least:
1) the time of data destruction implementation;
2) a list of data types managed and to be destroyed, including Credit Data or Financing Data and/or Other Data obtained by the LPIP directly from Other Data sources outside the OJK. Such Credit Data or Financing Data and/or Other Data may be electronic and non-electronic data (printed documents);
3) parties invited as witnesses in the implementation of data destruction. The parties acting as witnesses come from the LPIP's data sources, amounting to at least 2 (two) people; and
4) the mechanism or method of destruction to be used.

c. In the event that an LPIP's business license is revoked by the OJK, data destruction as referred to in number 3 is carried out at the latest 10 (ten) working days from the date the decision letter revoking the business license is received by the LPIP.

d. Data destruction at the LPIP as referred to in number 3 is carried out by including at least the following documents:
1) a stamped declaration letter containing data destruction from the LPIP management;
2) minutes of data destruction signed by the LPIP and witnesses containing at least the following information:
a) time of data destruction implementation (day, date, month, year); b) data destroyed, containing at least the type, quantity, and source of data; c) the party destroying the data; and d) the party witnessing the destruction.

e. Data destruction is carried out in accordance with the procedures regulated in applicable legislation regarding the management of electronic archives.

XV. PROCEDURE FOR IMPOSITION OF SANCTIONS

Payment of administrative fines by the LPIP to the OJK is carried out with reference to applicable legislation regarding OJK levies.

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

XVI. CORRESPONDENCE ADDRESS

Submission of application letters and reports is addressed to the OJK at the following address:
Permit and Banking Information Department
Financial Services Authority (OJK)
Jl. M.H.Thamrin No.2
Jakarta 10350

XVII. CLOSING

The provisions in this OJK Circular shall take effect on the date of establishment.
Upon the effective date of this OJK Circular, Bank Indonesia Circular Number 15/49/DPKL dated December 5, 2013 concerning Credit Information Management Institutions is revoked and declared invalid.

Established in Jakarta on December 22, 2022
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
DIAN EDIANA RAE

APPENDIX
CIRCULAR OF THE FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
NUMBER 27 /SEOJK.03/2022
CONCERNING
CREDIT INFORMATION MANAGEMENT INSTITUTIONS

ii
TABLE OF CONTENTS
TABLE OF CONTENTS...........................................................................................................ii
1. Administrative requirement documents for prospective Controlling Principal Parties of LPIP………………………………………………………………………………………. - 1 -
2. Administrative requirement documents for prospective Controlling Principal Parties of LPIP through the takeover process ….......................................................... - 6 -
3. Questionnaire for Prospective Ultimate Controlling Shareholders (Ultimate Shareholders of LPIP) – Individuals........................................................... - 11 -
4. Questionnaire for Prospective Controlling Principal Parties/Controlling Parties/Ultimate Shareholders of LPIP – Legal Entities....................................................... - 17 -
5. Administrative requirement documents for prospective LPIP Board of Directors members..... - 22 -
6. Administrative requirement documents for prospective LPIP Board of Commissioners members - 24 -
7. Questionnaire for prospective LPIP Board of Directors members and prospective LPIP Board of Commissioners members...................................................................................................... - 26 -
8. Compliance checklist for completeness of application documents for nomination of LPIP Board of Directors members ...................................... - 32 -
9. Compliance checklist for completeness of application documents for nomination of LPIP Board of Commissioners members....................... - 36 -
10. Example of domicile data and information update report........................ - 40 -
11. Explanation of LPIP Ownership Structure.................................................. - 44 -
12. Example of BHI share ownership in LPIP ........................................... - 45 -
13. Example of maximum foreign ownership in LPIP ................. - 47 -
14. Example of maximum ownership by 1 (one) party in 1 (one) LPIP ... - 51 -
15. Example of maximum ownership by 1 (one) party in several LPIP. - 53 -
16. Example of letter of application for principle approval of LPIP establishment ............. - 55 -
17. Example of letter of application for LPIP business license ........................................... - 57 -
18. Document checklist for the application for increase in paid-up capital .................................................................................................. - 59 -
20. Example of LPIP paid-up capital increase report after OJK approval - 63 -
21. Example of letter of application for approval of change in LPIP share ownership composition .......................................................................................... - 64 -
22. Example of letter of application for approval of change in composition of LPIP Board of Directors members and/or LPIP Board of Commissioners members .............................................. - 66 -
23. Example of data acquisition cost calculation ............................................ - 68 -
24. Quarterly financial report format................................................... - 69 -
25. Report submission format ............................................................... - 72 -
a. Example of monthly report submission letter..................................... - 72 -

iii b. Example of quarterly report submission letter................................. - 75 -
c. Example of semi-annual report submission letter................................ - 76 -
d. Example of annual report submission letter .................................... - 77 - e. Example of annual business plan submission letter ......................... - 78 -
26. Letter of application for approval of cessation of business activities................ - 79 -
27. Example of letter of application for approval of revocation of business license ............ - 80 -
28. Example of report on new product issuance plan ................................. - 81 -
29. Example of report on new product issuance realization ................................. - 83 -

Administrative requirement documents for prospective Controlling Principal Parties of LPIP

a. Deed of establishment including the articles of association of the legal entity along with any amendments that have received approval from the competent authority, except for local governments.

b. Documents stating the identity of all Board of Directors members and Board of Commissioners members for limited liability companies, or managers for cooperatives or other legal entities;
1) copies of identification cards (KTP), passports, or other valid identities;
2) curriculum vitae;
3) recent 4 x 6 cm passport-sized photos;
4) copy of the Taxpayer Identification Number (NPWP) of the legal entity; and
5) copy of the Taxpayer Identification Number (NPWP) of each Board of Directors member and Board of Commissioners member for limited liability companies or equivalent positions for other legal entities.

c. List of shareholders along with details of each shareholding for limited liability companies, recapitulation of principal and mandatory savings and gift lists for cooperatives, or asset lists for foundations or other legal entities.

d. Financial statements of the prospective Controlling Principal Party for the last 2 (two) years prior to the application letter date, including balance sheets, income statements, cash flow statements, statements of changes in equity, and notes to the financial statements that must be audited by a public accountant, except for local governments.
1) Analysis of the financial capability of the prospective Controlling Principal Party at present and its projections for a minimum period of 3 (three) years prepared by an independent consultant.
2) A stamped declaration letter from all Board of Directors members and Board of Commissioners members for limited liability companies or equivalent positions for other legal entities stating that the funds used for the purchase of shares:
a) do not originate from credits or financing from banks and/or other parties; and b) do not originate from criminal proceeds and for the purposes of money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction.
3) Stamped declaration letters, as follows:
a) A legal entity declaration letter from all Board of Directors members and Board of Commissioners members for limited liability companies or equivalent positions for other legal entities, containing at least that the concerned party:
(1) is committed to complying with applicable laws and regulations, particularly in the field of LPIP and supporting OJK policies; (2) is committed to taking necessary measures if the LPIP faces capital, liquidity, or solvency difficulties in conducting its business activities; (3) has never been sentenced for proven criminal acts that have been decided by a court and have acquired permanent legal force, in the form of:
(a) criminal acts in the financial services sector whose sentences have been completed within the last 20 (twenty) years prior to nomination; (b) criminal offenses, namely criminal acts stipulated in the Criminal Code (KUHP) and/or similar foreign criminal codes with a prison sentence threat of 1 (one) year or more whose sentences have been completed within the last 10 (ten) years prior to nomination; and/or (c) other criminal acts with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, in the field of taxation, forestry, environment, marine, and fisheries, whose sentences have been completed within the last 20 (twenty) years prior to nomination, and is not currently prohibited from becoming a Principal Party, which is listed among others in the disqualification list. (4) will not transfer LPIP share ownership held, within a certain period (minimum 5 (five) years); (5) is willing to strengthen capital if deemed necessary by the OJK; (6) has never been declared bankrupt and/or has never been a shareholder or controlling party declared guilty causing a company to be declared bankrupt within the last 5 (five) years prior to nomination; (7) does not have non-performing credits/financing and/or overdue and problematic debts; (8) is not a controlling party of a legal entity that has non-performing credits/financing and/or overdue and problematic debts; (9) is not undergoing legal processes, is not undergoing capability and propriety assessments at a financial services institution and/or is not in the process of re-evaluation due to indications of integrity, financial viability/reputation, and/or competence issues at a financial services institution; (10) is committed to the healthy operational development of the LPIP; b) A declaration letter from each Board of Directors member and each Board of Commissioners member of the aforementioned legal entity, containing at least:
(1) commitment to comply with applicable laws and regulations, particularly in the field of LPIP and supporting OJK policies; (2) has never been sentenced for proven criminal acts that have been decided by a court and have acquired permanent legal force, in the form of:
(a) criminal acts in the financial services sector whose sentences have been completed within the last 20 (twenty) years prior to nomination; (b) criminal offenses, namely criminal acts stipulated in the Criminal Code (KUHP) and/or similar foreign criminal codes with a prison sentence threat of 1 (one) year or more whose sentences have been completed within the last 10 (ten) years prior to nomination; and/or (c) other criminal acts with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money in the field of taxation, forestry, environment, marine, and fisheries, whose sentences have been completed within the last 20 (twenty) years prior to nomination, and is not currently prohibited from becoming a Principal Party, which is listed among others in the disqualification list. (3) has never been declared bankrupt and/or has never been a shareholder, controlling party, Board of Directors member, or Board of Commissioners member declared guilty causing a company to be declared bankrupt within the last 5 (five) years prior to the application date; (4) does not have non-performing credits/financing and/or overdue and problematic debts; (5) is not a controlling party, Board of Commissioners member, or Board of Directors member of a legal entity that has non-performing credits/financing and/or overdue and problematic debts; (6) is not undergoing legal processes, is not undergoing capability and propriety assessments at a financial services institution, and/or is not in the process of re-evaluation due to indications of integrity, financial viability/reputation, and/or competence issues at a financial services institution; (7) is committed to the healthy operational development of the LPIP; (8) will not commit and/or repeat acts and/or actions that cause the concerned party to be included as a party prohibited from becoming a Principal Party (for nominees who have previously been prohibited from being a Principal Party).
4) The entire business group structure related to the LPIP legal entity up to the ultimate controlling shareholders.
5) A stamped declaration letter from the prospective Controlling Principal Party regarding willingness to provide data and information related to the business group structure to the OJK for supervisory purposes.

Administrative requirement documents for prospective Controlling Principal Parties of LPIP through the takeover process

a. Proof of announcement of the summary of the takeover draft, at least 30 (thirty) days prior to the implementation of the RUPS. The announcement contains at least:
1) the name and domicile of the LPIP being taken over and the party taking over, accompanied by the identity of the party taking over;
2) the composition of shareholders before and after the takeover; and
3) the estimated duration of the takeover implementation.

b. The takeover draft prepared by the Board of Directors of the LPIP to be taken over together with the party taking over, containing at least the following:
1) Name and domicile of the LPIP to be taken over and the party taking over, accompanied by identity documents of the party taking over:
a) deed of establishment including the articles of association of the legal entity along with any amendments that have received approval from the competent authority, except for local governments. b) documents stating the identity of all Board of Directors members and Board of Commissioners members for limited liability companies, or managers for cooperatives or other legal entities:
(1) copies of identification;
(2) curriculum vitae;
(3) recent 4 x 6 cm passport-sized photos; and (4) copy of the Taxpayer Identification Number (NPWP) of each Board of Directors member and Board of Commissioners member for limited liability companies or equivalent positions for other legal entities.
2) Financial statements for at least the last 1 (one) fiscal year from the LPIP to be taken over and for the last 2 (two) years from the legal entity that will take over the LPIP, consisting of at least balance sheets, income statements, and statements of changes in equity along with notes to the financial statements audited by a public accountant.
3) Analysis of current financial capability and its projections from the legal entity taking over for a minimum period of 3 (three) years prepared by an independent consultant.
4) Draft amendment to the articles of association of the LPIP to be taken over.
5) Quantity and value of LPIP shares to be taken over along with the composition of shareholders after the takeover.
6) Readiness of funding from the party taking over.
7) Estimated duration of the takeover implementation.
8) A stamped declaration letter from the party taking over that the funds used:
a) do not originate from credits or financing from banks and/or other parties; and b) do not originate from criminal proceeds and for the purposes of money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction.

c. Concept of the takeover deed approved by the RUPS of the LPIP to be taken over and the party taking over.

d. Stamped declaration letters from the party taking over, as follows:
1) A legal entity declaration letter from all Board of Directors members and Board of Commissioners members for limited liability companies or equivalent positions for other legal entities, containing at least that the concerned party:
a) is committed to complying with applicable laws and regulations, particularly in the field of LPIP and supporting OJK policies; b) is committed to taking necessary measures if the LPIP faces capital, liquidity, or solvency difficulties in conducting its business activities; c) has never been sentenced for proven criminal acts that have been decided by a court and have acquired permanent legal force, in the form of:

(1) Criminal offenses in the financial services sector where the sentence has been fully served within the last 20 (twenty) years prior to nomination; (2) Criminal offenses, namely offenses listed in the Criminal Code (KUHP) and/or equivalent foreign criminal codes with a prison sentence threat of 1 (one) year or more, where the sentence has been fully served within the last 10 (ten) years prior to nomination; and/or (3) Other criminal offenses with a prison sentence threat of 1 (one) year or more, including but not limited to corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, tax offenses, forestry offenses, environmental offenses, maritime, and fisheries offenses, where the sentence has been fully served within the last 20 (twenty) years prior to nomination, and is not currently prohibited from becoming a Principal Party, which includes being listed in the disqualification list; d) not transferring ownership of LPIP shares held, within a specific period (minimum 5 (five) years); e) willing to strengthen capital, if deemed necessary by OJK; f) never declared bankrupt and/or never been a controlling shareholder found guilty of causing a company to be declared bankrupt within the last 5 (five) years prior to nomination; g) not having non-performing loans/financing and/or overdue and problematic debts; h) not being the controller of a legal entity that has non-performing loans/financing and/or overdue and problematic debts;

i) not currently undergoing legal processes, not currently undergoing suitability and propriety assessments at a financial services institution, and/or not currently undergoing re-assessment due to indications of integrity issues, financial viability/reputation, and/or competence at a financial services institution; j) committed to the healthy operational development of LPIP.

2) A letter of statement from each member of the board of directors and each member of the board of commissioners of the aforementioned legal entity, which shall contain at least:
a) commitment to comply with laws and regulations, particularly in the field of LPIP, and support OJK policies; b) never sentenced for proven criminal offenses that have been decided by a court and have acquired permanent legal force, consisting of:
(1) criminal offenses in the financial services sector where the sentence has been fully served within the last 20 (twenty) years prior to nomination; (2) criminal offenses, namely offenses listed in the Criminal Code (KUHP) and/or equivalent foreign criminal codes with a prison sentence threat of 1 (one) year or more, where the sentence has been fully served within the last 10 (ten) years prior to nomination; and/or (3) other criminal offenses with a prison sentence threat of 1 (one) year or more, including but not limited to corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, tax offenses, forestry offenses, environmental offenses, maritime, and fisheries offenses, where the sentence has been fully served within the last 20 (twenty) years prior to nomination, and is not currently prohibited from becoming a Principal Party, which includes being listed in the disqualification list; c) never declared bankrupt and/or never been a controlling shareholder, member of the board of directors, or member of the board of commissioners found guilty of causing a company to be declared bankrupt within the last 5 (five) years prior to the date of application submission; d) not having non-performing loans/financing and/or overdue and problematic debts; e) not being a controller, member of the board of commissioners, or member of the board of directors of a legal entity that has non-performing loans/financing and/or overdue and problematic debts; f) not currently undergoing legal processes, not currently undergoing suitability and propriety assessments at a financial services institution, and/or not currently undergoing re-assessment due to indications of integrity issues, financial viability/reputation, and/or competence at a financial services institution; g) committed to the healthy operational development of LPIP; and h) will not commit and/or repeat acts and/or actions that cause the party to be included as a party prohibited from becoming a Principal Party (for candidates who were previously prohibited as Principal Parties);

e. The entire business group structure related to the LPIP legal entity up to the ultimate shareholders. f. A stamped letter of statement from the candidate controlling Principal Party regarding willingness to provide data and information related to the business group structure to OJK for supervisory purposes.

Filling list for candidates for the last controlling shareholder (LPIP ultimate shareholders) – Individuals
(Use a separate answer sheet if the available pages are insufficient)

No.	Question	Answer/Explanation
a.	Full name
b.	Other names (if any)
c.	Place and date of birth (dd/mm/yyyy)
d.	Address according to ID card
e.	Domicile address (if different from address according to letter d)
f.	Professional qualifications and their periods (state completely)
g.	Taxpayer Identification Number (NPWP)
h.	Total value of all assets as of the end of December of the last year. (attach copy of supporting documents)
i.	Total value of all liabilities as of the end of December of the last year. (attach copy of supporting documents)
j.	Total income and earnings in the last 3 (three) years. (attach copy of supporting documents)
k.	Total income tax payments in the last 3 (three) years. (attach copy of supporting documents).
l.	Estimated income to be obtained in the current year.
m.	Explain the source of funds that you will use to buy/take over LPIP shares, e.g., from: a. Personal wealth. b. Domestic loans. c. Foreign loans. d. Others (state the source). (answers must be accompanied by supporting documents).
n.	Explain the companies you own (directly and indirectly).
o.	Explain your obligations and responsibilities at the companies you own as per letter n above.
p.	Are you the last controlling shareholder (Ultimate Shareholders) at another LPIP? Explain.
q.	Are you the (last controlling shareholder) Ultimate Shareholders at a non-LPIP company? Explain.
r.	Does the other LPIP in question letter p above and/or the non-LPIP company in question letter q above have a business relationship with the LPIP whose shares you will own? Explain the type of business relationship in detail.
s.	Do you intend to buy the shares for the purpose of long-term investment? If not, explain.
t.	Do you currently own shares in the LPIP whose shares you will buy (directly or indirectly)? If yes, explain the composition in detail along with the names recorded as shareholders of the LPIP you already own. Explain the reasons if the aforementioned shares are under another party's name.
u.	How many shares will you buy? What is the purchase value? What is your proportion of the total LPIP shares? If you already owned shares of the aforementioned LPIP previously, what is the proportion if added to the number of shares you will buy now?
v.	Do you cooperate or take aligned actions to achieve common goals in controlling the LPIP to be owned (acting in concert) with other shareholders?
w.	Do you cooperate or take aligned actions to achieve common goals in controlling the LPIP to be owned (acting in concert) with other shareholders?
x.	Have you ever been asked to stop working, dismissed, subjected to disciplinary actions/sanctions by a company, or subjected to sanctions prohibiting you from practicing your profession?
y.	When you managed or owned a company, was that company ever declared bankrupt by authorities in Indonesia or another country?
z.	Are you (personally or in association), your company, or your business group ever published and/or the object of investigation by competent authorities regarding criminal offenses and/or other disgraceful acts in the financial field? If Yes, explain including the final result of resolution.
aa.	Do you have a company whose license was ever frozen by authorities in Indonesia or another country? Explain.
bb.	Do you or your company have licenses to conduct business in Indonesia or in other countries? Explain the type of business field, how long, where? If there are licenses that were frozen/cancelled, explain in detail.
cc.	Have you (personally or in association), your company, or your business group ever had a license application rejected in the field of LPIP/financial services institutions by authorities in Indonesia or in other countries? Explain in detail.
dd.	Do you and/or your business group have plans to conduct other businesses in Indonesia or in other countries that will affect the LPIP whose shares you will own? Explain.
ee.	Have you (personally or together), your company, or your business group ever failed to fulfill obligations to other parties based on laws in Indonesia or other countries (e.g., tax payments, credits, etc.)? Explain.
ff.	Is your business activity or your company's business activity or your business group's business activity currently or will be guaranteed by other parties? If Yes, explain by whom and how that guarantee will be implemented.
gg.	Explain the vision, mission, and targets to be achieved in the framework of developing a healthy LPIP and increasing your contribution through LPIP to the national economy.
hh.	Explain your commitment and strategy towards LPIP development through the development of office networks, human resources, products, IT, and others.
ii.	Explain your commitment in maintaining the professionalism of LPIP management.
jj.	What is your strategy in increasing the effectiveness and supervision of internal control systems, risk management systems, and human resource development so that it can implement a work culture in accordance with LPIP governance principles? Explain.
kk.	What is your commitment and strategy in supporting the implementation of healthy LPIP operations? Explain.
ll.	Explain if there is other information that can become OJK's consideration in processing your application.

The undersigned hereby states that:

I have understood the provisions related to my rights and obligations as an ultimate shareholder as regulated in the applicable laws and regulations;
The information provided above is true, complete, and accurate;
I will inform OJK within 30 (thirty) days if there are changes in information; and
If the above statement/information is proven to be untrue, I am willing to resign from the ultimate shareholder position within 30 (thirty) days.

(City), ...
(Signature above sufficient stamp)
(Name/Position)

Filling list for candidates for Controlling Principal Party/Controller/LPIP Ultimate Shareholders – Legal Entities
(Use a separate answer sheet if the available pages are insufficient)

No.	Question	Answer/Explanation
a.	Company name and full address
b.	Full name (party representing the company) and Position in the company:
c.	Explain your obligations and responsibilities as the party representing the company:
d.	Place and date of company establishment (dd/mm/yyyy)
e.	Supervisory Body/Regulator of your company:

Name of Institution :
Address :
Website :
Is the supervisory authority of your company willing to accept the concept of consolidated supervision together with OJK? | |
| f. | Main business of the company currently and according to the company's articles of association? | |
| --- | --- | --- |
| g. | Is your company a Controlling Principal Party at another LPIP? Explain. | |
| h. | Is your company a Controlling Principal Party at a non-LPIP company? Explain. | |
| i. | Does the other LPIP in question letter g above and/or the non-LPIP company in question letter h above have a business relationship? Explain. | |
| j. | Does your company intend to become a controller/Controlling Principal Party for the purpose of long-term investment? Elaborate on your reasons. | |
| k. | Does your company currently own shares of the LPIP whose shares will be owned by your company? If yes, explain the composition in detail along with the names recorded as shareholders of the LPIP already owned by your company. Explain the reasons if the aforementioned shares are under another party's name. | |
| l. | Elaborate in detail, the nominal/percentage of ownership to be taken over by your company and your business group. | |
| m. | Do you cooperate or take aligned actions to achieve common goals in controlling the LPIP to be owned (acting in concert) with other shareholders? | |
| n. | State the name and position of the “key person” at your company. For controllers, explain detailed information including nationality, academic and professional qualifications, and employment in the last 5 (five) years. | |
| o. | Inform in detail the entire list of shareholders at your company and explain the Controlling Principal Party. | |
| p. | Does your company currently control directly or indirectly the LPIP to be owned? If Yes, explain. | |
| q. | Has your company ever been published or become the object of investigation by competent authorities regarding criminal offenses and/or other disgraceful acts in the financial field? If Yes, explain, including the final result of resolution. | |
| r. | Is your company the controller of another company whose business license was ever revoked by authorities in Indonesia or another country? Explain. | |
| s. | Does your company or your business group have a license to conduct business in Indonesia or in other countries? Explain the type of business field, how long, where? If there are licenses that were frozen/cancelled, explain in detail. | |
| t. | Has your company or your business group ever had a license application rejected in the field of LPIP/financial services institutions by competent parties in Indonesia or in other countries? Explain in detail. | |
| u. | Do you and/or your business group have plans to conduct other businesses in Indonesia or in other countries that will affect the LPIP to be owned? Explain. | |
| v. | Has your company or your business group ever failed to fulfill obligations (tax payments, credits, etc.) to other parties based on laws in Indonesia or other countries? Explain. | |
| w. | Is the business activity of your company or other companies in your business group currently or will be guaranteed by other parties? If Yes, explain by whom and how that guarantee will be implemented. | |
| x. | Explain the source of funds that your company will use to buy/take over LPIP shares, e.g., from: a. Company wealth. b. Domestic loans. c. Foreign loans. d. Others (state the source) (answers must be accompanied by supporting documents). | |
| y. | Explain the vision, mission, and targets to be achieved in the framework of developing a healthy LPIP and increasing your company's contribution through LPIP to the national economy. | |
| z. | Explain your company's commitment and strategy towards LPIP development through the development of office networks, human resources, products, IT, and others. | |
| aa. | Explain your company's commitment in maintaining the professionalism of LPIP management. | |
| bb. | What is your commitment and strategy in supporting the implementation of healthy LPIP operations? Explain. | |
| cc. | Explain if there is other information that can become OJK's consideration in processing your application. | |

The undersigned hereby states that:

I have understood the provisions related to my rights and obligations as a Controlling Principal Party of LPIP/controller/ultimate shareholder as regulated in the applicable laws and regulations;
The information provided above is true, complete, and accurate;
I will inform OJK within 30 (thirty) days if there are changes in information; and
If the above statement/information is proven to be untrue, I am willing to resign from the Controlling Principal Party of LPIP/controller/ultimate shareholder position within 30 (thirty) days.

(City), ...
(Signature above sufficient stamp)
(Name/Position)

Administrative requirement documents for candidates for LPIP board of directors members
a. List of composition of LPIP board of directors members and board of commissioners members. b. Copy of identification:
1) For Indonesian citizens, an Identity Card (KTP); or
2) For foreigners, an Alien Employment Permit (IMTA) or Limited Stay Permit Card (KITAS).
c. Curriculum vitae.
d. Recent 4 x 6 cm passport photo. e. Example of signature and paraf. f. Letter of certificate/written proof of having knowledge and experience in the field of LPIP and/or financial services institutions. g. A stamped letter of statement stating that the party:
1) is committed to complying with applicable laws and regulations, particularly in the field of LPIP, and supporting OJK policies; and
2) has never been sentenced for proven criminal offenses consisting of:
a) criminal offenses in the financial services sector where the sentence has been fully served within the last 20 (twenty) years prior to nomination; b) criminal offenses, namely offenses listed in the Criminal Code (KUHP) and/or equivalent foreign criminal codes with a prison sentence threat of 1 (one) year or more, where the sentence has been fully served within the last 10 (ten) years prior to nomination; and/or c) other criminal offenses with a prison sentence threat of 1 (one) year or more, including but not limited to corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, tax offenses, forestry offenses, environmental offenses, maritime, and fisheries offenses, where the sentence has been fully served within the last 20 (twenty) years prior to nomination; and is not currently prohibited from becoming a Principal Party, which includes being listed in the disqualification list, does not have non-performing loans and/or financing and/or overdue and problematic debts;
3) is not a controller, member of the board of commissioners, or member of the board of directors of a legal entity that has non-performing loans and/or financing and/or overdue and problematic debts;
4) has never been declared bankrupt and/or has never been a Controlling Principal Party, member of the board of directors, or member of the board of commissioners found guilty of causing a company to be declared bankrupt within the last 5 (five) years prior to nomination;
5) does not hold concurrent positions at LPIP and/or other companies, except as a manager of an LPIP industry association and/or educational institution for the purpose of increasing LPIP human resource competence and as long as it does not interfere with the execution of duties as a member of the LPIP board of directors;
6) is willing to meet provisions regulating that the majority of board of directors members do not have family relationships up to the second degree with other board of directors members or board of commissioners members;
7) is not currently undergoing legal processes, suitability and propriety assessments, and/or is currently undergoing re-assessment due to indications of integrity issues, financial viability/reputation, and/or competence at a financial services institution;
8) is committed to the healthy operational development of LPIP; and
9) does not commit and/or repeat acts and/or actions that cause the party to be included as a party prohibited from becoming a Principal Party (for candidates who were previously prohibited as Principal Parties).
Administrative requirement documents for candidates for LPIP board of commissioners members
a) List of composition of LPIP board of commissioners members and board of directors members. b) Copy of identification. c) Curriculum vitae. d) Recent 4 x 6 cm passport photo. e. Example of signature and paraf. f. Letter of Certificate/written proof of having experience in the field of LPIP and/or financial services institutions. g. A stamped letter of statement stating that the party:
1) is committed to complying with laws and regulations, particularly in the field of LPIP, and supporting OJK policies;
2) has never been sentenced for proven criminal offenses consisting of:
a) criminal offenses in the financial services sector where the sentence has been fully served within the last 20 (twenty) years prior to nomination. b) criminal offenses, namely offenses listed in the Criminal Code (KUHP) and/or equivalent foreign criminal codes with a prison sentence threat of 1 (one) year or more, where the sentence has been fully served within the last 10 (ten) years prior to nomination; and/or c) other criminal offenses with a prison sentence threat of 1 (one) year or more, including but not limited to corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting money, tax offenses, forestry offenses, environmental offenses, maritime, and fisheries offenses, where the sentence has been fully served within the last 20 (twenty) years prior to nomination;
3) is not currently prohibited from becoming a Principal Party, which includes being listed in the disqualification list;
4) does not have non-performing loans and/or financing and/or overdue and problematic debts;

5) is not a controller, member of the board of directors, or member of the board of commissioners of a legal entity that has non-performing credit and/or financing and/or overdue and problematic debt;
6) has never been declared bankrupt and/or has never been a controlling shareholder, member of the board of directors, or member of the board of commissioners who was declared guilty causing a company to be declared bankrupt within the last 5 (five) years before being nominated;
7) does not hold concurrent positions as:
a) member of the board of commissioners exceeding what is permitted in applicable regulations; b) member of the board of directors or executive official at LPIP;
8) is willing to meet regulations governing that the majority of board of commissioners members do not have family relationships up to the second degree with other board of commissioners members or board of directors members;
9) is not undergoing legal processes, is not undergoing ability and propriety assessments at a financial service institution, and/or is not undergoing re-assessment due to indications of integrity issues, financial feasibility/reputation, and/or competence at a financial service institution;
10) is committed to the healthy operational development of LPIP;
11) is willing to present supervision results regarding LPIP when requested by OJK; and
12) does not commit and/or repeat acts and/or actions that cause the individual to be included as a prohibited party to become a Principal Party (for candidates who were previously prohibited from being a Principal Party).

Filling list for candidates for board of directors members and candidates for board of commissioners members of LPIP

No. Question	Answer/Explanation
a. Identity of the proposed candidate:
a. Full name:
b. Other name (if any):
c. Place, date of birth (dd/mm/yyyy):
d. Address according to ID card/KITAS:
e. Taxpayer Identification Number (NPWP):
b. Party proposing the nomination of you as a member of the board of directors/board of commissioners.
c. Relationship between you and the party proposing the nomination of you as a member of the board of directors/board of commissioners.
d. Companies that you have owned and currently own (including LPIP) individually or jointly and the size of your ownership.
e. Have you or your company (including LPIP) ever had license applications in the field of LPIP/finance rejected by authorities in Indonesia or other countries?
f. Do you have a company (including LPIP) that has ever been declared bankrupt, frozen, revoked, or closed by competent authorities in Indonesia or other countries?
g. Have companies (including LPIP) that you have ever owned or companies (including LPIP) where you have ever worked, ever failed to fulfill obligations to other parties according to law in Indonesia or other countries?
h. Have companies (including LPIP) that you have ever owned and currently owned ever or currently had loans that are overdue and problematic? Explain in detail.
i. Have you personally or in association, your company (including LPIP), ever been published and/or become the object of investigation by legal authorities regarding criminal issues and/or misconduct in the financial field?
j. Have you ever worked at a company (including LPIP) that has ever or currently has loans that are overdue and problematic? Describe your position, responsibilities, and obligations at the company (including LPIP).
k. Has your nomination application as an official in the field of LPIP/finance been rejected by competent parties in Indonesia or other countries?
l. Do you have loans that are overdue and problematic individually or jointly?
m. Have you ever worked at a company (including LPIP) that has ever been declared bankrupt or has had its business license revoked or closed by competent parties in Indonesia or other countries? Describe your position, responsibilities, and obligations at the company (including LPIP).
n. Have you ever been subjected to disciplinary actions/sanctions by a company (including LPIP) or sanctions prohibiting you from practicing your profession or ever been asked to stop working?
o. Have you ever taken certification exams related to LPIP? If so, at what level and what grade did you obtain?
p. Do you have relationships with controlling Principal Parties and other officials (family, financial, management, and ownership relationships)?
q. Explain your understanding of regulations regarding Banking Information.
r. Explain your vision, mission, and strategy that you will apply to develop LPIP in the future, including alternative solutions to problems currently faced by LPIP.
s. What is your commitment to the healthy operational development of LPIP, the application of prudential principles at LPIP, and governance and compliance with applicable regulations? Explain.
t. What is your commitment to business development in Indonesia in the future and what is your role in increasing LPIP's contribution to the economy in general? Explain.
u. Explain the strategy and business process of LPIP according to the LPIP business plan and your role.
v. Explain the condition of LPIP regarding business size, segmentation, and the LPIP problem map, as well as improvement recommendation plans.
w. Explain:
a. duties, functions, and responsibilities of the position you will hold;
b. implementation of governance principles at all levels of the LPIP organization.
x. Explain your vision and mission in addressing internal and external issues from the LPIP business strategy.
y. Explain your motivation and commitment in carrying out duties and responsibilities at the position you will hold.
z. Explain the suitability of your competence and work experience in carrying out duties at the position you will hold.
aa. Explain the suitability of your competence and work experience in carrying out duties at the position you will hold.
bb. Do you have achievements in the field of LPIP/financial service institutions? If yes, explain.
cc. Do you have special/specific competencies that will provide positive contributions to LPIP? If yes, explain.
dd. How is your independence towards PSP? Explain. (specifically for the Chief Executive Director)
ee. Explain how you will increase your knowledge regarding Indonesian LPIP given that you have never worked at an Indonesian LPIP? (Specifically for those who have never worked at an Indonesian LPIP)
ff. Other information that can be considered by OJK in obtaining your application.

The undersigned hereby declares that:
a. I have understood the regulations concerning my rights and obligations as a member of the board of directors/board of commissioners as regulated in applicable regulations; b. the information provided above is true, complete, and accurate;
c. I will inform OJK within 30 (thirty) days if there are significant changes in information; and
d. if the above statement/information is proven to be untrue, I am willing to resign as a member of the board of directors/board of commissioners of LPIP within 30 (thirty) days. City, … Signature … (with stamp duty) Name/Position …

Compliance checklist for completeness of application documents for nomination of LPIP board of directors members

Applicant LPIP Name :
Candidate Identity Information
Name
Address
Place and Date of Birth
Education
Occupation
Position to be held

a. List of board of directors and board of commissioners members of LPIP before and after nomination. b. Copy of identification.
c. Curriculum vitae.
d. Latest passport photo size 4x6 cm. e. Example of signature and initial. f. Filling list for candidate board of commissioners members or candidate board of directors members of LPIP. g. Letter of certificate/written proof of knowledge in the field of LPIP and/or financial service institutions registered by OJK. h. Notarized statement letter from each candidate for board of directors members stating that the individual:
a. is committed to complying with applicable regulations and laws, especially in the field of LPIP and supporting OJK policies; b. has never been sentenced for proven criminal acts that have been decided by final and binding judgments consisting of:
1) criminal acts in the financial service sector whose sentence has been completed within the last 20 (twenty) years before nomination;
2) criminal acts, namely criminal acts contained in the Criminal Code (KUHP) and/or similar KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentence has been completed within the last 10 (ten) years before nomination; and/or
3) other criminal acts with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trafficking, terrorism, counterfeiting money, in the tax field, in the forestry field, in the environmental field, in the maritime field, and fisheries, whose sentence has been completed within the last 20 (twenty) years before nomination.
c. is not currently under sanctions prohibiting them from becoming a Principal Party (including the failed list);
d. does not have non-performing credit and/or financing and/or overdue and problematic debt; e. is not a controller, member of the board of directors, or member of the board of commissioners of a legal entity that has non-performing credit/financing and/or overdue and problematic debt; f. has never been declared bankrupt and has never been a shareholder, member of the board of directors, or member of the board of commissioners who was declared guilty causing a company to be declared bankrupt within the last 5 (five) years before nomination; g. does not hold concurrent positions at LPIP and/or other companies, except as an official of the LPIP industry association and/or educational institutions for the purpose of increasing LPIP human resource competence as long as it does not interfere with the implementation of duties as a member of the LPIP board of directors; h. is willing to meet regulations governing that the majority of board of directors members do not have family or in-law relationships up to the second degree with other board of directors members and/or board of commissioners members;
i. is not undergoing legal processes, ability and propriety assessments, and/or is undergoing re-assessment due to indications of integrity issues, financial feasibility/reputation, and/or competence at a financial service institution;
j. is committed to the healthy operational development of LPIP; and k. does not commit and/or repeat acts and/or actions that cause the individual to be included as a prohibited party to become a Principal Party (for candidates who were previously prohibited from being a Principal Party).

The undersigned hereby declares that:
a) the submitted documents are complete and correct in number and format, and the substance of the submitted administrative requirement documents complies with the requirements in this SEOJK; and b) the administrative requirement documents in the form of "statement" and "filling list" have indeed been filled out and signed by the proposed candidate. (City), … (Signature above stamp duty) Name/Position ..

Compliance checklist for completeness of application documents for nomination of LPIP board of commissioners members

Applicant LPIP Name :
Candidate Identity Information
Name
Address
Place and Date of Birth
Education
Occupation
Position to be held

a. List of board of directors and board of commissioners members of LPIP before and after nomination. b. Copy of identification.
c. Curriculum vitae.
d. Latest passport photo size 4x6 cm. e. Example of signature and initial. f. Filling list for candidate board of commissioners members or candidate board of directors members of LPIP. g. Letter of certificate/written proof of knowledge in the field of LPIP and/or financial service institutions registered by OJK. h. Notarized statement letter from each candidate for board of commissioners members stating that the individual:
a. is committed to complying with applicable regulations and laws, especially in the field of LPIP and supporting OJK policies; b. has never been sentenced for proven criminal acts that have been decided by final and binding judgments consisting of:
1) Criminal acts in the financial service sector whose sentence has been completed within the last 20 (twenty) years before nomination.
2) Criminal acts, namely criminal acts contained in the Criminal Code (KUHP) and/or similar KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentence has been completed within the last 10 (ten) years before nomination; and/or
3) Other criminal acts with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trafficking, terrorism, counterfeiting money, in the tax field, in the forestry field, in the environmental field, in the maritime field, and fisheries, whose sentence has been completed within the last 20 (twenty) years before nomination.
c. is not currently under sanctions prohibiting them from becoming a Principal Party (including the failed list);
d. does not have non-performing credit and/or financing and/or overdue and problematic debt; e. is not a controller, member of the board of directors, or member of the board of commissioners of a legal entity that has non-performing credit/financing and/or overdue and problematic debt; f. has never been declared bankrupt and has never been a shareholder, member of the board of directors, or member of the board of commissioners who was declared guilty causing a company to be declared bankrupt within the last 5 (five) years before nomination; g. does not hold concurrent positions at LPIP and/or other companies, except as an official of the LPIP industry association and/or educational institutions for the purpose of increasing LPIP human resource competence as long as it does not interfere with the implementation of duties as a member of the LPIP board of directors; h. is willing to meet regulations governing that the majority of board of directors members do not have family or in-law relationships up to the second degree with other board of directors members and/or board of commissioners members;
i. Is not undergoing legal processes, ability and propriety assessments, and/or is undergoing re-assessment due to indications of integrity issues, financial feasibility/reputation, and/or competence at a financial service institution;
j. is committed to the healthy operational development of LPIP; k. does not commit and/or repeat acts and/or actions that cause the individual to be included as a prohibited party to become a Principal Party (for candidates who were previously prohibited from being a Principal Party);

Example of domicile data and information update report
a. Example format of domicile data and information update report for board of directors members, board of commissioners members, and executive officials
1) LPIP Principal Party Data
LPIP Name : ………………………………………
Principal Party : ………………………………………
(Controlling Principal Party/member of board of directors/member of board of commissioners/executive official) Name (according to identity) : ……………………………………… Place and date of birth : ……………………………………… Address (according to identity) : ……………………………………… Domicile address : ……………………………………… Phone number : ……………………………………… Email address : ………………………………………
2) Contactable Party Data
The above data and information are compiled truthfully accompanied by copies of ID cards/KITAS of each party.
(place), (date, month, year)
(Name, signature)
Name (according to identity) : ……………………………………… Place and date of birth : ……………………………………… Family relationship : ……………………………………… (husband/wife/sibling/other - specify) Address (according to identity) : ……………………………………… Domicile address : ……………………………………… Phone number : ……………………………………… Email address : ………………………………………

b. Example format of domicile data and information update report for controlling Principal Party of a legal entity
1) LPIP Principal Party Data
LPIP Name : ………………………………………
Name of Controlling Principal Party of the legal entity (according to articles of association) : ……………………………………… Address (according to identity) : ……………………………………… Phone number : ……………………………………… Email address : ……………………………………… Legal entity website : ………………………………………
2) Data of the party representing the Controlling Principal Party of the legal entity
Name (according to identity) : ……………………………………… Place and Date of Birth : ……………………………………… Position at the legal entity : ……………………………………… Address (according to identity) : ……………………………………… Office phone number : ……………………………………… Mobile phone number : ……………………………………… Email address : ……………………………………… The above data and information are compiled truthfully accompanied by copies of ID cards/KITAS of each party. (place), (date, month, year) (Name, signature)

c. Checklist of documents for reconsideration application

No. Document (v)	Description
1. Identity documents, at least:
a. copy of identity;
b. curriculum vitae;
c. latest color passport photo size 4 x 6 cm;
d. copy of NPWP.
2. Copy of the decision declaring the applicant failed (if any).
3. Documents proving compliance with reconsideration application criteria, including:
a. proof, data, and/or new information regarding the absence of or failure to submit clarification or response during re-assessment, such as official letters from the hospital where the applicant was treated;
b. copy of final and binding court decisions stating that the applicant is not proven to have committed a criminal act or not proven to be declared bankrupt and/or to be a shareholder, member of the board of directors, or member of the board of commissioners who was declared guilty causing a company to be declared bankrupt or have its business license revoked;
c. official and valid proof of consequences from the implementation of regulations;
d. proof of no negative records during the failed status, including a notarized statement letter stating that the applicant: 1) did not cause bankruptcy and/or was not a shareholder, member of the board of directors, or member of the board of commissioners who was declared guilty causing a company to be declared bankrupt or have its business license revoked; and 2) has never been sentenced for proven legal violations with a sanction threat of more than 1 (one) year, proven by e.g., Police Record Certificate; and
e. commitment and realization plan documents, such as capital increase or merger and/or acquisition of LPIP.

The undersigned hereby declares that:
1. the information provided above and the attached supporting documents are true, complete, and accurate; and
2. if the above statement or information is proven to be untrue, I declare to cancel the reconsideration application.
(place), (date, month, year)

11. Explanation of LPIP Ownership Structure
List of Abbreviations
1. BHI : Indonesian Legal Entity
2. BHA : Foreign Legal Entity
3. LPIP : Credit Information Service Provider

12. Example of BHI ownership in LPIP
Illustration A.1.1
Illustration A.1.1 describes the share ownership structure of PT LPIP with the following explanation:
PT LPIP is owned by 3 (three) parties, namely BHI A, BHI B, and BHI C, without any ownership linkage between BHI and without any ownership by foreign parties.
Therefore, the maximum ownership for 1 (one) party in PT LPIP is 51%.

Illustration A.1.2
Illustration A.1.2 describes the share ownership structure of PT LPIP with the following explanation:
PT LPIP is owned by 3 (three) parties, namely BHI A, BHI B, and BHI C, without any ownership linkage between BHI and without any ownership by foreign parties. However, there is no party owning shares at the maximum ownership limit determined, which is 51%.

Example of maximum ownership by foreign parties in LPIP
Illustration A.2.1:
Illustration A.2.1 describes the ownership structure of PT LPIP with the following explanation:
a. There are foreign parties as owners of PT LPIP at layer 2, namely BHA Y through BHI A, and BHA Z through BHI C. b. The size of foreign party ownership (BHA Y and BHA Z) is:
1) BHA Y = (% ownership of BHA Y in BHI A multiplied by % ownership of BHI A in PT LPIP)
= 30% x 50%
= 15%
BHA Y's ownership in PT LPIP is 15%;
2) BHA Z = (% ownership of BHA Z in BHI C multiplied by % ownership of BHI C in PT LPIP)
= 50% x 10%
= 5%
BHA Z's ownership in PT LPIP is 5%;
Total foreign party ownership through BHA Y and BHA Z in PT LPIP is 20%.
c. Total foreign party ownership in PT LPIP has reached the determined maximum limit, which is 20%. Other BHI (BHI D, BHI E, BHI F, BHI G) are not allowed to be owned by foreign parties up to the final ownership (ultimate shareholder).

Illustration A.2.2:
Illustration A.2.2 describes the ownership structure of PT LPIP, with the following explanation:
a. There are foreign parties as owners of PT LPIP at layer 3, namely BHA Y and WNA Z. b. The size of foreign party ownership (BHA Y and WNA Z) is:
1) BHA Y= (% ownership of BHA Y in BHI C multiplied by % ownership of BHI C in BHI A multiplied by % ownership of BHI A in PT LPIP)
= 75% x 40% x 50%
= 15%
BHA Y's ownership in PT LPIP is 15%;
2) WNA Z = (% ownership of WNA Z in BHI F multiplied by % ownership of BHI F in BHI B multiplied by % ownership of BHI B in PT LPIP)
= 20% x 62.5% x 40%
= 5%
WNA Z's ownership in PT LPIP is 5%;
Total foreign party ownership through BHA Y and WNA Z in PT LPIP is 20%.
c. Total foreign party ownership in PT LPIP has reached the determined maximum limit, which is 20%. Other BHI (BHI B, BHI E, BHI F, BHI I) are not allowed to be owned by foreign parties up to the final ownership (ultimate shareholder).

Illustration A.2.3
Illustration A.2.3 depicts the ownership structure of PT LPIP, with the following explanation:
a. There are foreign parties as owners of PT LPIP, namely BHA X at layer 2, BHA Y at layer 3, and WNA Z at layer 4. b. The size of foreign ownership (BHA X, BHA Y, and WNA Z) is:
1) BHA X = (% ownership of BHA X in BHI A multiplied by % ownership of BHI A in PT LPIP)
= 20% x 50%
= 10%
BHA X ownership in PT LPIP is 10%;
2) BHA Y = (% ownership of BHA Y in BHI E multiplied by % ownership of BHI E in BHI B multiplied by % ownership of BHI B in PT LPIP)
= 20% x 62.5% x 40%
= 5%
BHA Y ownership in PT LPIP is 5%;
3) WNA Z = (% ownership of WNA Z in BHI F multiplied by % ownership of BHI F in BHI C multiplied by % ownership of BHI C in BHI A multiplied by % ownership of BHI A in PT LPIP)
= 25% x 50% x 80% x 50%
= 5%
WNA Z ownership in PT LPIP is 5%;

Total ownership of BHA X, BHA Y, and WNA Z in PT LPIP is 20%.
c. Total foreign ownership in PT LPIP has reached the maximum limit determined, namely 20%. Other BHI (BHI B, BHI E, BHI H, BHI I) are not allowed to be owned by foreign parties up to the ultimate shareholder.

Example of maximum ownership by 1 (one) party on 1 (one) LPIP
Illustration A.3.1
Illustration A.3.1 depicts the ownership structure of PT LPIP with the following explanation:
a. There is 1 (one) party, namely: BHI A which is a shareholder of PT LPIP (at layer 1) and also owns PT LPIP through BHI C (at layer 2). The maximum ownership of BHI A in PT LPIP is 51%. b. The size of BHI A's ownership in PT LPIP is:
BHI A = (% ownership of BHI A in PT LPIP) plus (% ownership of BHI A in BHI C multiplied by % ownership of BHI C in PT LPIP) = 31% + (50% x 40%) = 51% BHI A ownership in PT LPIP is 51%.
c. Total ownership of BHI A in PT LPIP has reached the maximum limit (51%), therefore BHI A is not allowed to increase its ownership in PT LPIP.
d. The calculation of maximum ownership of 1 (one) party on 1 (one) LPIP also applies to positions at other layers. An example is the ownership of BHI D in PT LPIP as follows:
BHI D = (% ownership of BHI D (layer 2) in BHI A (layer 1) multiplied by % ownership of BHI A in PT LPIP) plus (% ownership of BHI D (layer 3) in BHI A (layer 2) multiplied by % ownership of BHI A (layer 2) in BHI C multiplied by % ownership of BHI C in PT LPIP) = (99% x 31%) + (99% x 50% x 40%) = 50% BHI D ownership in PT LPIP is 50%.

Illustration A.3.2
Illustration A.3.2 depicts the ownership structure of PT LPIP with the following explanation:
a. There is 1 (one) foreign party, namely: BHA X as the owner of PT LPIP through BHI A and BHI C (at layer 2). The maximum ownership of BHA X in PT LPIP is 20%. b. The size of BHA X's ownership in PT LPIP is:
1) BHA X ownership through BHI A
= (% ownership of BHA X in BHI A) multiplied by (% ownership of BHI A in PT LPIP) = 50% x 30% = 15%
2) BHA X ownership through BHI C
= (% ownership of BHA X in BHI C) multiplied by (% ownership of BHI C in PT LPIP) = 10% x 50% = 5% Total BHA X ownership in PT LPIP is 20%.
c. Total BHA X ownership has reached the maximum limit (20%), therefore BHA X is not allowed to increase its ownership in PT LPIP.
d. The calculation of maximum ownership of 1 (one) party on 1 (one) LPIP also applies to positions at other layers.

Example of maximum ownership by 1 (one) party on several LPIP
Illustration A.4.1
Illustration A.4.1 depicts the ownership structure of PT LPIP with the following explanation:
a. There is 1 (one) BHI party, namely BHI C which becomes an owner in several LPIP, namely: in PT LPIP 1 and PT LPIP 2. The maximum ownership of BHI C in all LPIP is 51%. b. The size of BHI C's ownership in all LPIP is:
1) BHI C ownership as a shareholder of PT LPIP 1 is:
BHI C in PT LPIP 1 = 31%
2) BHI C ownership in PT LPIP 2 is:
BHI C = (% ownership of BHI C in BHI E) multiplied by (% ownership of BHI E in PT LPIP 2) = 50% x 40% = 20% Total BHI C ownership in all LPIP is: 21% + 30% = 51%.
c. Total BHI C ownership has reached the maximum ownership limit in all LPIP (51%), therefore BHI C is not allowed to increase its ownership in other PT LPIP.

Illustration A.4.2
Illustration A.4.2 depicts the ownership structure of PT LPIP with the following explanation:
a. There is 1 (one) foreign party, namely: BHA X which becomes an owner in several LPIP, namely: in PT LPIP 1 and in PT LPIP 2. The maximum ownership of BHA X in all LPIP is 20%. b. The size of BHA X's ownership in all LPIP is:
1) BHA X ownership in PT LPIP 1
= (% ownership of BHA X in BHI B) multiplied by (% ownership of BHI B in PT LPIP 1) = 25% x 40% = 10% BHA X ownership in PT LPIP 1 is 10%
2) BHA X ownership in PT LPIP 2
= (% ownership of BHA X in BHI E) multiplied by (% ownership of BHI E in PT LPIP 2) = 25% x 40% = 10% BHA X ownership in PT LPIP 2 is 10% Total BHA X ownership in all LPIP is: 10% + 10% = 20%.
c. Total BHA X ownership has reached the maximum ownership limit in all LPIP (20%), therefore BHA X is not allowed to increase its ownership in other PT LPIP.

16. Example of a letter of application for the principle approval of the establishment of a city LPIP
city, date-month-year
No. :
Attachments: .... (in words) files
To
Chairman of the Board of Commissioners of OJK
Jl. M. H. Thamrin No. 2
JAKARTA 10350
Attention: Department of Licensing and Banking Information Subject: Application for Principle Approval of Credit Information Management Institution (LPIP) Hereby we apply to obtain principle approval for the establishment of an LPIP with the planned name ……… located in ……… Regency/City ………, Province ………. To complete the aforementioned application, we submit herewith:
1. draft deed of establishment of the limited liability company, including draft articles of association;
2. ownership data in the form of a list of each prospective shareholder accompanied by required documents;
3. list of composition of prospective members of the board of directors and board of commissioners accompanied by required documents;
4. planned organizational structure and human resources;
5. business plan for the first 3 (three) years;
6. medium and long-term strategic plan;
7. draft information technology system to be used;
8. internal control system guidelines and guidelines for the implementation of governance for LPIP;
9. operational policies and procedures;
10. Copy of deposit receipt amounting to Rp. … (…) in the name of the Board of Commissioners of the Financial Services Authority q.q. … for the establishment of LPIP, which has contained
information that disbursement can only be carried out after obtaining written approval from OJK.
12. stamped letter of statement from prospective shareholders that the source of funds used in the context of LPIP ownership:
a. does not come from credit or financing from banks and/or other parties; and b. does not come from the results of criminal acts and for the purpose of money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction.
13. stamped letter of statement covering the truthfulness of data and/or information submitted by LPIP to OJK
Thus our application.
Name and signature of prospective owner
(……...............………..….)

17. Example of a letter of application for LPIP business license
city, date-month-year
No. :
Attachments: .... (in words) files
To
Chairman of the Board of Commissioners of OJK
Jl. M. H. Thamrin No. 2
JAKARTA 10350
Attention: Department of Licensing and Banking Information Subject: Application for Business License of Credit Information Management Institution (LPIP) Referring to OJK Letter Number ……… dated ……… regarding Principle Approval of LPIP, hereby we:
LPIP Name: ………
Address: ……… apply for a business license for LPIP. To complete the aforementioned application, we submit herewith:
1. deed of establishment of LPIP, including articles of association that have been approved by the competent authority;
2. list of shareholders accompanied by required documents;
3. list of composition of members of the board of directors and board of commissioners accompanied by required documents;
4. organizational structure and human resources *);
5. business plan for the first 3 (three) years *);
6. medium and long-term strategic plan *);
7. information technology system architecture to be used;
8. internal control system guidelines and guidelines for the implementation of governance for LPIP *);
9. operational policies and procedures;
10. proof of operational readiness accompanied by required documents;
11. stamped letter of statement covering the truthfulness of data and/or information submitted by LPIP to OJK.

Thus our application.
(Board of Directors)
(........................................)
Note:
*) Only submitted if there are changes.

18. Document checklist for the application for increase in paid-up capital
No. Description Completeness
19. 20.Yes No 21. Notes
1. Proof of capital deposit in cash form in the form of a copy of deposit receipt at a general bank in Indonesia.
(if in cash form)
2. Proof of deposit in the form of other assets in the form of an independent valuation report on the assets handed over.
3. Explanation of the source of funds used for capital deposit in item 1 which explains the entire flow of funds from the source of initial assets of shareholders up to the funds in question are recorded as capital deposits.
(if in cash form)
4. Supporting documents regarding the source of funds used for capital deposit in item 1 (if in cash form), including:
a. proof of capital deposit bookkeeping in the form of journals and position reports before and after capital deposit; b. account mutations for the last 6 (six) months in the event that capital deposits come from savings or checking accounts;
c. proof of withdrawal of deposit receipts in the event that capital deposits come from deposits, including:
1) transfer slips or account mutations that hold the proceeds of withdrawal; and

No. Description Completeness
Yes No Notes
2) copy of the deposit receipt that has been withdrawn;
d. proof of sales transactions, including copies of deeds or sales agreements, copies of receipts, in the event that capital deposits come from the results of asset sales, proof of tax payments for sales transactions, and proof of payment from the asset buyer (including transfer slips or account mutations that hold the proceeds of asset sales); and/or e. copies of donation deeds and/or inheritance documents, in the event that capital deposits come from donations and/or inheritance.
5. Specifically for increases in paid-up capital originating from the results of dividend distribution of the relevant LPIP, accompanied by documents:
a. minutes of the Annual General Meeting of Shareholders regarding dividend distribution; b. proof of capital deposit bookkeeping in the form of dividend distribution journals and financial position reports of LPIP before and after dividend distribution; and
c. proof of withholding or tax payments on dividends
6. Stamped letter of statement from each shareholder, that

22. No. Description Completeness
Yes No Notes a. does not come from credit or financing in any form from banks and/or other parties; and/or b. does not come from and for money laundering and/or terrorism financing or proliferation of weapons of mass destruction.
7. Documents regarding requirements for Prospective Controlling Main Parties, including the Ultimate Controlling Main Party, referring to the appendix according to Appendix 1 or 2 and 3 or 4;
LPIP and/or financial service institutions owned by shareholders or prospective Controlling Main Parties
8. List of LPIP and/or financial service institutions owned by LPIP shareholders or prospective Controlling Main Parties of LPIP,
accompanied by a. financial position reports b. income statements; and
c. certain ratios including capital adequacy, liquidity, and profitability referring to applicable assessment standards for each LPIP
and/or financial service institutions.

We, the undersigned, declare that the checklist has been filled out and compiled completely and in accordance with the actual situation and has been completed with documents according to OJK Regulations regarding Credit Information Management Institutions to be submitted to OJK in the context of an application for approval of an increase in paid-up capital. (City), (date-month-year) (Signature above sufficient stamp) (Full Name of LPIP Board of Directors) No. Description Completeness Yes No Notes
9. Financial reports of the Controlling Main Party include financial position reports, income statements, cash flow statements, statements of changes in equity, and notes to the latest financial position reports as of the date of the increase in paid-up capital or at the end of the month before the date of the application for an increase in paid-up capital.

20. Example of a report on the increase in paid-up capital of LPIP after OJK approval
city, date-month-year
No. :
Attachments: .... (in words) files
To
Financial Services Authority
Jl. M. H. Thamrin No. 2
JAKARTA 10350
Attention: Department of Licensing and Banking Information c.q. Deputy Director of Credit Information Management Subject: Report on Increase in Paid-Up Capital of Credit Information Management Institution (LPIP) In connection with OJK's approval of the increase in paid-up capital of LPIP, we hereby submit:
1. minutes of the Annual General Meeting of Shareholders;
2. ownership data;
3. changes to the articles of association that have received approval from the competent authority, attached with:
a. copies of the deed of amendment of the articles of association in accordance with applicable regulations; and b. approval letters or letters of acceptance of notification of changes to the articles of association as referred to in letter a from the competent authority. Furthermore, we apply for approval of the withdrawal of deposits to OJK to be recorded as paid-up capital. Thus for your information. (Board of Directors) (...................................)

21. Example of a letter of application for approval of changes in LPIP shareholding composition
city, date-month-year
No. :
Attachments: .... (in words) files
To
Financial Services Authority
Jl. M. H. Thamrin No. 2
JAKARTA 10350
Attention: Department of Licensing and Banking Information c.q. Deputy Director of Credit Information Management Subject: Application for Approval of Changes in Shareholding Composition of Credit Information Management Institution (LPIP) Hereby we apply for changes in the shareholding composition of LPIP caused by replacement/reduction/addition of shares*) with the following details:
A. Current LPIP share ownership:
No. Owner Name
Number of Shares
Nominal Amount
(in thousands of Rp)
Percentage
(%)
1.
2.
Etc.
Total
B. Planned new LPIP share ownership:
No. Owner Name
Number of Shares
Nominal Amount
(in thousands of Rp)
Percentage
(%)
1.
2.
Etc.
Total

To complete the aforementioned application, we submit herewith the required documents from prospective shareholders as attached.
Thus our application.
(Board of Directors)
(.....................................)
Note:
*) strike out what is not needed

Example of a letter of application for approval of changes in the composition of LPIP board of directors and/or board of commissioners members
city, date-month-year
No. :
Attachments: .... (in words) files
To
Financial Services Authority
Jl. M. H. Thamrin No. 2
JAKARTA 10350
Attention: Department of Licensing and Banking Information c.q. Deputy Director of Credit Information Management Subject: Application for Approval of Changes in the Composition of LPIP Board of Directors and/or Board of Commissioners Members *) Hereby we apply for changes in the composition of LPIP board of directors and/or board of commissioners members *) as follows:
A. Current composition of LPIP board of directors and/or board of commissioners members *):
No.
Name of Directors and/or Board of Commissioners *) Position 1.
2.
Etc.
B. Planned new composition of LPIP board of directors and/or board of commissioners members *):
No.
Name of Directors and/or Board of Commissioners *) Position 1.
2.
Etc.

We submit herewith the required documents.
Thus our application.
(Board of Directors)
(........................................)
Note:
*) strike out what is not needed

Example of data acquisition cost calculation
1) Example I: Data acquisition cost:
On July 10, 2022, LPIP received a business license from OJK. From August 1-31, 2022, LPIP requested Debtor or SLIK Customer credit information data with a total access of 24,500 Ideb. Regarding this matter, by October 31, 2022 at the latest, LPIP must pay the data acquisition fee to OJK through the OJK Receipt System (SIPO) amounting to Rp150,000,000.
2) Example II: Data acquisition cost:
After receiving a business license on July 10, 2022, LPIP operates and requests periodic data every month as follows:
a) Access September 1-30, 2022 as many as 27,300 Ideb. b) Access October 1-31, 2022 as many as 43,250 Ideb c) Access November 1-31, 2022 as many as 300,045 Ideb d) Access December 1-31, 2022 as many as 1,250,000 Ideb Regarding these data accesses, LPIP is subject to periodic data acquisition costs as follows:
Payment by October 31, 2022 at the latest
Month Taxable Value
August 1-31, 2022 150,000,000
September 1-30, 2022 150,000,000
Total 300,000,000
Payment by January 31, 2023 at the latest
Month Taxable Value
October 1-31, 2022 150,000,000
November 1-31, 2022 150,000,000
December 1-31, 2022 650,000,000
Total 950,000,000

24. Format for quarterly financial reports
a. Financial position report
Position
Report Date
Position
ASSETS
Current Assets
1. Cash and Cash Equivalents
2. Trade Receivables
3. Prepaid Taxes
4. Advances and Prepaid Expenses
5. Security Deposits-Current
6. Other Current Assets
Total Current Assets
Non-Current Assets
1. Net Fixed Assets
2. Net Intangible Assets
3. Deferred Tax Assets
4. Security Deposits-Non-Current
5. Other Non-Current Assets
Total Non-Current Assets
LIABILITIES AND EQUITY
LIABILITIES
Short-Term Liabilities
1. Trade Payables – Short-Term
2. Accrued Expenses
3. Loans from Shareholders
4. Tax Payables
5. Unearned Revenue
6. Lease Liabilities – Short-Term
7. Other Short-Term Liabilities
Total Short-Term Liabilities
Long-Term Liabilities
1. Trade Payables – Long-Term

2. Lease Liabilities – Long-Term
3. Post-Employment Benefit Liabilities
4. Other Long-Term Liabilities
Total Short-Term Liabilities
EQUITY
1. Share Capital
2. Share Premium
3. Retained Earnings
4. Other Equity
Total Equity
TOTAL LIABILITIES AND EQUITY b. Income statement and other comprehensive income Position Period Report REVENUE AND OPERATING EXPENSES Operating Revenue Operating Expenses
1. Marketing Expenses
2. General and Administrative Expenses
3. Salary Expenses
4. Depreciation Expenses
Total Net Operating Revenue
Non-Operating Income (Expenses)
1. Income (expenses) from Financial Assets
2. Other Non-Operating Income (Expenses)
Profit (Loss) Before Tax Expense
Tax Expense
Profit (Loss) for the Current Year

Other Comprehensive Income
Total Comprehensive Profit (Loss) for the Current Year

Format for report submission
a. Example of a letter for submitting monthly reports city, date-month-year No. :
Attachments: ... (in words) files
To
Chairman of the Board of Commissioners of OJK
Jl. M. H. Thamrin No. 2
JAKARTA 10350
Attention: Department of Licensing and Banking Information c.q. Deputy Director of Credit Information Management Subject: Submission of Monthly Report for Period…(month-year) Hereby we submit the Monthly Report for Period...(month-year)* as attached. Thus we submit. (Board of Directors) (........................................)

Appendix to Monthly Report for Period...(month-year)

Total Debtors (detailed into Individual Debtors and Corporate Debtors);
Total Customers (detailed into Individual Debtors and Corporate Debtors);
Total Credit Facilities (detailed by facility type);
Total Financial Institutions that are members (detailed by business activity category);
Total non-Financial Institutions that are members (detailed by business activity category);
Total requests for Credit Information by members (detailed by request purpose);
Total requests for Credit Information by the public (detailed by request purpose);
For items 1 to 6, they can be presented in a series (table and/or diagram) for at least the last 3 (three) months.
Data on the handling of Debtor or Customer complaints
a. Total complaints from Debtors or Customers caused by data in Credit Information:
Jan … …
Total complaints currently being handled:
a. Debtors b. Customers
Total new complaints in the current month:
a. Debtors b. Customers
Total complaints proven to be invalid:
a. Debtors b. Customers
Total complaints not resolved in the current month:
a. Debtors b. Customers b. Total complaints from Debtors or Customers caused by the submission of Credit Information to Debtors or Customers that is incorrect;
c. Total complaints from Debtors or Customers caused by Debtor or customer data being mixed in Credit Information; and

d. Total complaints from Debtors or Customers that have become legal lawsuits.

b. Example of a letter for submitting quarterly reports city, date-month-year No. :
Attachments: ... (in words) files
To
Financial Services Authority
Jl. M. H. Thamrin No. 2
JAKARTA 10350
Attention: Department of Licensing and Banking Information c.q. Deputy Director of Credit Information Management Subject: Submission of Quarterly Report (I/II/III/IV)* year... Hereby we submit the Quarterly Report (I/II/III/IV)* year... as required and attached. Thus we submit. (Board of Directors) (........................................) Note:
*) strike out what is not needed

c. Example of a letter for submitting semi-annual reports
city, date-month-year
No. :
Attachments: ... (in words) files
To
Financial Services Authority
Jl. M. H. Thamrin No. 2
JAKARTA 10350
Attention: Department of Licensing and Banking Information c.q. Deputy Director of Credit Information Management Subject: Submission of Semi-Annual Report (I/II)* year... Hereby we submit the Semi-Annual Report (I/II)* year... as required and attached. Thus we submit. (Board of Directors) (........................................) Note:
*) strike out what is not needed

d. Example of a letter for submitting annual reports city, date-month-year No. :
Attachments: ... (in words) files
To
Financial Services Authority
Jl. M. H. Thamrin No. 2
JAKARTA 10350
Attention: Department of Licensing and Banking Information c.q. Deputy Director of Credit Information Management Subject: Submission of Annual Report… Hereby we submit the Annual Report for the Year... as required and attached. Thus we submit. (Board of Directors) (........................................)

e. Example of a letter for submitting annual business plans city, date-month-year No. :
Attachments: .... (in words) files
To
Financial Services Authority
Jl. M. H. Thamrin No. 2
JAKARTA 10350
Attention: Department of Licensing and Banking Information c.q. Deputy Director of Credit Information Management Subject: Submission of Annual Business Plan… Hereby we submit the Annual Business Plan for the Year... as required and attached. Thus we submit. (Board of Directors) (........................................)

26. Sample letter requesting approval to cease business activities
City, Date
No. :
Attachments: .... (in words) files
To
Financial Services Authority
Jl. M. H. Thamrin No. 2
JAKARTA 10350
Attention: Department of Licensing and Banking Information through: Deputy Director of Credit Information Management Subject: Request for Approval to Cease Business Activities of Credit Information Management Institution (LPIP) Hereby we request approval to cease the business license of LPIP … for the reason … Attached are documents with the following details:
1. copy of the Minutes of the General Meeting of Shareholders regarding the plan to cease LPIP business activities;
2. report on the plan and reasons for ceasing LPIP business activities;
3. plan to settle all obligations (action plan) of LPIP;
4. latest financial report; and
5. proof of settlement of taxes for the last 3 (three) years.
Thus our request.
(Board of Directors)
(........................................)

27. Sample letter requesting approval to revoke business license
City, Date
No. :
Attachments: .... (in words) files
To
Financial Services Authority
Jl. M. H. Thamrin No. 2
JAKARTA 10350
Attention: Department of Licensing and Banking Information through: Deputy Director of Credit Information Management Subject: Request for Approval to Revoke Business License of Credit Information Management Institution (LPIP) Hereby we request approval to revoke the business license of (name of LPIP) ……… effective from date ……… Attached is a report containing the following information:
1. implementation of the cessation of business activities;
2. implementation of the announcement of the cessation of business activities and the plan to settle obligations;
3. implementation of the settlement of obligations;
4. report on the verification results from the public accountant office regarding the settlement of obligations; and
5. stamped declaration letter from shareholders regarding the settlement of obligations.
Thus our request.
(Board of Directors)
(.....................................)

28. Sample report on the plan for issuing new products
PLAN FOR ISSUING NEW PRODUCTS
Name of LPIP :
No. Type of New LPIP Product Planned Time of Implementation Purpose/Benefit Relevance of New LPIP Product with LPIP Strategy General Description Risks That May Arise Risk Mitigation for Issuance of New LPIP Product For LPIP For Customers … … … … … … … … …
1. Type of New LPIP Product
Filled with the type of LPIP product with the type of product being implemented. For example: credit scoring, business intelligence, and so on.
2. Planned Time of Implementation
Filled with the time period of date, month name, or quarter.
3. Purpose/Benefit
Filled with the purpose and benefit of issuing the product both for LPIP and customers.
4. Relevance of New LPIP Product with LPIP Strategy
Filled with the relevance between the issuance of the new LPIP product and the LPIP strategy.

5. General Description
Filled with a general description that at least describes among others the product name, features, and business model of the LPIP product.
6. Risks That May Arise
Filled with the risks that may arise from the issuance of the new LPIP product.
7. Risk Mitigation for Issuance of New LPIP Product
Filled with the risk mitigation carried out by LPIP regarding the issuance of the new LPIP product.

29. Sample report on the realization of issuing new products
REALIZATION OF ISSUING NEW PRODUCTS
Name of LPIP :
No. Type of New LPIP Product Realized Time of Implementation Realized Purpose/Benefit Realized Relevance of New LPIP Product with LPIP Strategy Realized General Description Realized Risks That May Arise Realized Risk Mitigation for Issuance of New LPIP Product For LPIP For Customers … … … … … … … … …
1. Type of New LPIP Product
Filled with the type of LPIP product with the type of product being implemented. For example: credit scoring, business intelligence, and so on.
2. Realized Time of Implementation
Filled with the correspondence with the time period of date, month name, or quarter in the plan for issuing new products.
3. Realized Purpose/Benefit
Filled with the correspondence with the purpose and benefit of issuing the product both for LPIP and customers in the plan for issuing new products.

4. Realized Relevance of New LPIP Product with LPIP Strategy
Filled with the correspondence with the relevance between the issuance of the new LPIP product and the LPIP strategy in the plan for issuing new products.
5. Realized General Description
Filled with the correspondence with the general description that at least describes among others the product name, features, and business model of the product in the plan for issuing new products.
6. Realized Risks That May Arise
Filled with the correspondence with the risks that may arise from the issuance of the new LPIP product in the plan for issuing new products.
7. Realized Risk Mitigation for Issuance of New LPIP Product
Filled with the correspondence with the risk mitigation carried out by LPIP regarding the issuance of the new LPIP product in the plan for issuing new products.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja
Established in Jakarta on December 22, 2022
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
DIAN EDIANA RAE

Lineage: No known changes

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