OJK Circular No. 8/SEOJK.07/2024 on Associations of Financial Sector Technology Innovation Providers

To:

1. Parties intending to submit an application to become an Association of Financial Sector Technology Innovation Service Providers;
2. Associations of Financial Sector Technology Innovation Service Providers; and
3. Members of the Association of Financial Sector Technology Innovation Service Providers,

at their respective addresses.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA NUMBER 8/SEOJK.07/2024

REGARDING

ASSOCIATIONS OF FINANCIAL SECTOR TECHNOLOGY INNOVATION SERVICE PROVIDERS

In order to implement the provisions of Article 21 and Article 28 of the Financial Services Authority Regulation Number 3 of 2024 concerning Financial Sector Technology Innovation (State Gazette of the Republic of Indonesia Year 2024 Number 5/OJK, Supplement to the State Gazette of the Republic of Indonesia Number 73/OJK), it is necessary to regulate regarding the Association of Financial Sector Technology Innovation Service Providers in this Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

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

1. Financial Sector Technology Innovation, hereinafter abbreviated as ITSK, is technology-based innovation that impacts products, activities, services, and business models within the digital financial ecosystem.

2. ITSK Service Provider is any party that conducts ITSK.

3. Association of ITSK Service Providers, hereinafter referred to as the Association, is a legal entity in the form of an association designated and established by the Financial Services Authority as the official Association of ITSK Service Providers.

4. Members of the Association of ITSK Service Providers, hereinafter referred to as Members, are ITSK Service Providers that have been registered and/or obtained a business license from the Financial Services Authority and have rights and obligations in accordance with the Association's Articles of Association, Bylaws, and internal regulations.

II. APPLICATION AS AN ASSOCIATION

1. The Applicant submits an application to become an Association to the Financial Services Authority by submitting the Letter of Application for Designation as an Association as set forth in Appendix I, which is an integral part of this Financial Services Authority Circular Letter, accompanied by supporting documents.

2. The supporting documents as referred to in paragraph 1 include:
   a. documents approving the Association of ITSK Service Providers; b. the Articles of Association of the Association of ITSK Service Providers and its amendments;
   c. the Code of Ethics of the Association of ITSK Service Providers;
   d. organizational structure and board of directors composition; e. structure of the working committees of the Association of ITSK Service Providers; f. standard operating procedures related to the formulation and implementation of the Code of Ethics for Members; g. internal control system; h. Association membership regulations;
   i. Member database;
   j. Association activity plan; k. association domicile certificate; and
   l. list of other supporting facilities.

3. The working committee as referred to in paragraph 2 letter e is responsible at least for the functions:
   a. research; b. innovation and development;
   c. Code of Ethics supervision;
   d. imposition of sanctions; and e. governance and audit.

4. The application as referred to in paragraph 1 is submitted online to the Financial Services Authority via the email address mailingroomsumitro@ojk.go.id or another address designated by the Financial Services Authority, addressed to the Executive Head of Supervision of Financial Sector Technology Innovation, Digital Financial Assets, and Crypto Assets.

5. In the event that the Financial Services Authority email address as referred to in paragraph 4 experiences disruption, the submission of the application to the Financial Services Authority is conducted offline by:
   a. direct submission; or b. sending through a courier service company.

6. The offline submission of the application as referred to in paragraph 5 is addressed to:
   Executive Head of Supervision of Financial Sector Technology Innovation, Digital Financial Assets, and Crypto Assets Soemitro Djojohadikusumo Building East Lapangan Banteng Street 2-4 Jakarta 10710, Indonesia

7. In order to assess the application as referred to in paragraph 1, the Financial Services Authority may request:
   a. the association's board of directors to present the operational readiness of the association; and/or b. data and information that are needed.

8. The Financial Services Authority issues a letter of designation or a letter of rejection regarding the application to become an Association as referred to in paragraph 1 within a maximum of 20 (twenty) working days after the complete application documents are received.

III. MEMBERSHIP IN THE ASSOCIATION

1. Every ITSK Service Provider that has been registered and/or obtained a business license is required to become a Member.

2. Members must meet the membership provisions in the Association.

IV. DUTIES AND AUTHORITY OF THE ASSOCIATION

1. Duties of the Association
   The Association is tasked with supporting the implementation of Financial Services Authority policies, at least:
   a. ensuring compliance in submitting reports to the Financial Services Authority; b. implementing the formulation of operational rules, industry standards, market behavior, and codes of ethics, based on the characteristics of ITSK Service Providers;
   c. receiving and forwarding consumer reports and complaints to Members;
   d. compiling statistics and market research related to the conduct of ITSK and monitoring risks and research on macro and micro financial issues including among others:

1. providing recommendations for the development of the ITSK ecosystem; and
2. formulating strategies and human resource development;
   e. implementing orders from the Financial Services Authority in supporting the development, strengthening, regulation, supervision, and information dissemination functions of the Financial Services Authority; f. formulating self-assessment mechanisms, including mechanisms for imposing sanctions on Members for violations of rules and codes of ethics; g. providing education and training to Members and all stakeholders; h. implementing Consumer Protection; and
   i. implementing domestic and international cooperation.

2. Authority of the Association
   In supporting the implementation of Financial Services Authority policies, the Association has the following authorities:
   a. establishing and enforcing the Code of Ethics and Association membership regulations; and b. establishing mechanisms for imposing sanctions on Members for violations of the Code of Ethics and Association membership regulations.

3. In carrying out the duties and authorities as referred to in paragraph 1 and paragraph 2, the Association must:
   a. refer to the provisions established by the Financial Services Authority; and b. coordinate with the Financial Services Authority in accordance with the provisions established by the Financial Services Authority.

4. In implementing orders from the Financial Services Authority in supporting the development, strengthening, regulation, supervision, and information dissemination functions of the Financial Services Authority as referred to in paragraph 1 letter e, the Association conducts among others:
   a. guidance and monitoring to ensure Member compliance with Association rules and codes of ethics; b. periodic evaluation of Member activities and operations;
   c. formulation of documents including among others:

   1. annual work plan;
   2. annual Association performance;
   3. results of guidance and monitoring of Member compliance, including Member business areas that are risky, on a quarterly basis;
   4. reports on the imposition of sanctions on Members for violations of the Code of Ethics and Association membership regulations;
   5. reports on the addition of admissions and/or termination of reduction of Members as set forth in Appendix II, which is an integral part of this Financial Services Authority Circular Letter; and
   6. reports on changes to the Articles of Association, Bylaws, Association board composition, and/or working committees.

5. Regulations issued by the Association as referred to in paragraph 1 letter b must represent the interests of all Members.

6. Regulations issued by the Association based on the duties and authorities of the Association as referred to in paragraph 1 and paragraph 2 are membership regulations and must not conflict with provisions established by the Financial Services Authority.

7. The implementation of the duties and authorities of the Association as referred to in paragraph 1 and paragraph 2 does not diminish the authority of the Financial Services Authority to regulate and supervise ITSK Service Providers.

8. In the event that regulations issued by the Association conflict with the provisions and policies of the Financial Services Authority, the Financial Services Authority may revoke or suspend the implementation of such Association regulations.

V. FUNDING SOURCES

1. In order to support its activities, the Association obtains funding among others from:
   a. registration fees and regular membership dues; and b. other funding sources as long as established in the Articles of Association, Bylaws, and/or internal regulations of the Association, provided they do not conflict with statutory regulations.

2. The Association must prepare a financial accountability report to Members at least once (1) in one (1) year and/or upon the occurrence of a change in the Association's board of directors.

VI. MONITORING OF THE ASSOCIATION

1. The Financial Services Authority may conduct monitoring of the Association regarding the implementation of provisions established by the Financial Services Authority.

2. In conducting monitoring as referred to in paragraph 1, the Financial Services Authority may request documents as referred to in Section IV paragraph 4.

3. In the event there are additional document requests, the Financial Services Authority may request the Association to submit additional documents other than those referred to in paragraph 2.

VII. REVOCATION OF THE LETTER OF DESIGNATION OF THE ASSOCIATION

1. The Financial Services Authority may revoke the letter of designation of the Association if:
   a. the Association violates statutory regulations; b. the Association submits an application for the return of the letter of designation of the Association;
   c. the legal entity of the Association is dissolved; and/or
   d. the legal entity status of the Association is revoked by the competent authority.

2. The letter of designation of the Association that has been revoked by the Financial Services Authority as referred to in paragraph 1 becomes invalid and must be returned to the Financial Services Authority.

3. The invalidity of the letter of designation of the Association as referred to in paragraph 2 is announced by the Financial Services Authority through the official website of the Financial Services Authority.

4. In the event that the revocation of the letter of designation of the Association is caused by the Association returning the letter of designation as referred to in paragraph 1 letter b, the Association must submit a letter of application for the return of the letter of designation as an Association to the Financial Services Authority accompanied by the following documents:
   a. information regarding the reasons for the return of the letter of designation; b. the letter of designation as an Association by the Financial Services Authority; and
   c. a statement of accountability from the Association's board of directors regarding the Association's obligations to third parties and/or Members.

5. In the event that the letter of designation of the Association becomes invalid or is revoked as referred to in paragraph 2, ITSK Service Providers who are Members of the Association whose letter of designation is invalid or revoked may:
   a. register as Members in another Association that has received designation from the Financial Services Authority; or b. form a new Association that subsequently submits an application to obtain designation from the Financial Services Authority as an Association, while still following the requirements and document completeness as regulated in this Financial Services Authority Circular Letter.

VIII. TRANSITIONAL PROVISIONS

The designation of Associations conducted based on Financial Services Authority Regulation Number 13/POJK.02/2018 concerning Digital Financial Innovation in the Financial Services Sector is declared to remain valid.

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

IX. CLOSING PROVISIONS

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

Established in Jakarta on 11 September 2024

EXECUTIVE HEAD OF SUPERVISION OF FINANCIAL SECTOR TECHNOLOGY INNOVATION, DIGITAL FINANCIAL ASSETS AND CRYPTO ASSETS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, HASAN FAWZI

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

APPENDIX I
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA NUMBER 8/SEOJK.07/2024 REGARDING ASSOCIATIONS OF FINANCIAL SECTOR TECHNOLOGY INNOVATION SERVICE PROVIDERS https://jdih.ojk.go.id/

APPLICATION FOR DESIGNATION AS AN ASSOCIATION OF FINANCIAL SECTOR TECHNOLOGY INNOVATION SERVICE PROVIDERS

Number : ..., .......... 20...
Attachments :
Subject : Application for Designation as an Association of ITSK Service Providers

To

The Executive Head of Supervision of Financial Sector Technology Innovation, Digital Financial Assets, and Crypto Assets Financial Services Authority in Jakarta

I, the undersigned below:

1. Name : .............................................................................
2. Address : .............................................................................
   (street name and number)
   .....................................................................– .....
   (city and postal code)
3. Telephone Number : .............................................................................

Hereby, on behalf of*):

1. Association Name : .............................................................................
2. Full Address : .............................................................................
   .............................................................................
   (street name and number)
   .................................................................... – .....
   (city and postal code)
3. Telephone Number : ............................................................................

submit an application for the designation of the Association. To complete this application, we attach documents as set forth in this Financial Services Authority Circular Letter.

4. Number and
   date of the deed of establishment including amendments to the articles of association
   : .............................................................................
   .............................................................................
   .............................................................................
   .............................................................................
   .............................................................................
   .............................................................................
   .............................................................................

5. Number and
   date of approval/ consent/ notification from the Minister who handles government affairs in the field of law and human rights
   : .............................................................................
   .............................................................................
   .............................................................................
   .............................................................................
   .............................................................................
   .............................................................................
   .............................................................................

No. Document Requirements Checklist
Completeness

1. Copy of the document approving the Association as a legal entity in the form of an association from the competent Government Agency;
2. Articles of Association of the Association, including the latest amendment to the articles of association that has obtained approval or has issued a notification receipt letter for the amendment of articles of association from the competent authority (if any);
3. Copy of the Association's Code of Ethics;
4. Organizational structure and board of directors composition:
   a) number of employees; b) list of the latest signed resumes of the board of directors; c) photocopy of valid ID Card or Passport of the board of directors; d) latest color photo of the board of directors size 4x6 cm with a red background, 1 (one) sheet; and e) integrity statement of the board of directors in accordance with the format of the Integrity Statement Letter as set forth in Appendix III, which is an integral part of this Financial Services Authority Circular Letter.
5. Structure of the working committees of the Association
6. Standard Operating Procedures related to the formulation and implementation of the Code of Ethics including monitoring of Members
7. Adequate internal control system, at least containing:
   a) framework for monitoring conflicts of interest risks in the implementation of duties and functions of the Association; b) framework for monitoring Members in accordance with the Code of Ethics; and c) monitoring in the context of periodic and continuous evaluation of the implementation of Association activities.
8. Association membership regulations, at least containing:
   a) requirements, admission procedures, and termination of Members; b) rights and obligations of Members; c) board of directors and membership of the Association; d) funding of Association activities; e) membership fees; f) sanctions; and g) procedures for Members to submit objections to the Association regarding sanctions established by the Association.
9. Documents related to the Member database, at least containing:
   a) name of the ITSK Service Provider; b) headquarters address, address at other locations besides the headquarters, and telephone number; c) business model of the ITSK Service Provider; and d) registered letter or business license of the ITSK Service Provider.
10. Association activity plan
11. Association domicile certificate
12. List of other supporting facilities such as computers, telephones, email, and websites with Indonesian domain names containing general information about the Association that can be accessed by the public.

Thus, this application is submitted, and we thank you for your attention.

Chairman of the Association, seal
...........................................
(full name and signature)

Note:
*) the party authorized to represent the Association or its proxy

Established in Jakarta on 11 September 2024

EXECUTIVE HEAD OF SUPERVISION OF FINANCIAL SECTOR TECHNOLOGY INNOVATION, DIGITAL FINANCIAL ASSETS AND CRYPTO ASSETS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, HASAN FAWZI

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

APPENDIX II
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA NUMBER 8/SEOJK.07/2024 REGARDING ASSOCIATIONS OF FINANCIAL SECTOR TECHNOLOGY INNOVATION SERVICE PROVIDERS https://jdih.ojk.go.id/

REPORT ON ADMISSION AND/OR TERMINATION OF MEMBERS FOR THE YEAR 20….

Name : ............................................................................
Period : ............................................................................

Admission of Members of the Association
ITSK Service Provider

Termination of Members of the Association
ITSK Service Provider

No. Name
ITSK Service Provider
Registered Letter and/or Business License
ITSK Service Provider
Date becoming
Member
No. Name
ITSK Service Provider
Registered Letter and/or Business License
ITSK Service Provider
Date
Termination
No. Letter
OJK Decision
Date
OJK Decision
Letter
No. Letter
OJK Decision
Date
OJK Decision
Letter

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

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

Total number of members holding Registered Letters and/or Business Licenses of ITSK Service Providers : ........
........., ........................ 20.......
(place and date)
Chairman of the Association,
..............................................
(full name and signature)

Established in Jakarta on 11 September 2024

EXECUTIVE HEAD OF SUPERVISION OF FINANCIAL SECTOR TECHNOLOGY INNOVATION, DIGITAL FINANCIAL ASSETS AND CRYPTO ASSETS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, HASAN FAWZI

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

APPENDIX III
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA NUMBER 8/SEOJK.07/2024 REGARDING ASSOCIATIONS OF FINANCIAL SECTOR TECHNOLOGY INNOVATION SERVICE PROVIDERS https://jdih.ojk.go.id/

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

INTEGRITY STATEMENT LETTER

I, the undersigned below:

Name : .......................................................
Full Address : .......................................................
(street name and number)
......................... - (city and postal code)
Telephone number : .......................................................

hereby declare that I:

a. have good character and morality; b. competent/incompetent*) to perform legal acts;
c. have/have not*) committed disgraceful acts and/or
been punished for proven criminal acts in the financial services sector; d. have/have not*) been subject to revocation of licenses, cancellation of approvals, and/or cancellation of registrations*) by the Financial Services Authority during the last 3 (three) years; e. have/have not*) been declared bankrupt or become a board member who is declared guilty causing a company to be declared bankrupt; and f. have a high commitment to comply with statutory regulations.

Thus, this statement is made truthfully so that it can be used as appropriate.

.........., ......................20.....
(place and date)

Applicant,
.............................................
(full name and signature)

Established in Jakarta on 11 September 2024

EXECUTIVE HEAD OF SUPERVISION OF FINANCIAL SECTOR TECHNOLOGY INNOVATION, DIGITAL FINANCIAL ASSETS AND CRYPTO ASSETS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, HASAN FAWZI

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