OJK Regulation No. 11 of 2025 on the Conduct of Guarantee Institution Business

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REGULATION OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA NUMBER 11 OF 2025 CONCERNING THE CONDUCT OF GUARANTEE INSTITUTION BUSINESS BY THE GRACE OF GOD THE ALMIGHTY

THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to strengthen the guarantee industry and realize a healthy, trusted, and sustainable guarantee industry, as well as to support national economic growth and equitable distribution; b. that the Financial Services Authority Regulation Number 2/POJK.05/2017 concerning the Conduct of Guarantee Institution Business as amended by the Financial Services Authority Regulation Number 30/POJK.05/2018 concerning Amendments to the Financial Services Authority Regulation Number 2/POJK.05/2017 concerning the Conduct of Guarantee Institution Business is no longer in line with the development of the guarantee institution industry in Indonesia, so it needs to be replaced;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning the Conduct of Guarantee Institution Business;

Recalling:

Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
Law Number 1 of 2016 concerning Guarantees (State Gazette of the Republic of Indonesia Year 2016 Number 9, Supplement to the State Gazette of the Republic of Indonesia Number 5835) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);

DECIDING:

To establish:
A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE CONDUCT OF GUARANTEE INSTITUTION BUSINESS.

CHAPTER I
GENERAL PROVISIONS

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

Guarantee is the activity of providing a guarantee by the guarantor for the fulfillment of the guaranteed party's financial obligations to the guarantee recipient.
Sharia Guarantee is the activity of providing a guarantee by the guarantor for the fulfillment of the guaranteed party's financial obligations to the guarantee recipient based on Sharia principles.
Sharia Principles are Islamic legal principles in guarantee activities based on fatwas and/or statements of Sharia compliance issued by institutions having authority in setting fatwas in the Sharia field.
Reinsurance is the activity of providing a guarantee for the fulfillment of financial obligations of a reinsurance company.
Sharia Reinsurance is the activity of providing a guarantee for the fulfillment of financial obligations of a Sharia reinsurance company and Sharia business units.
Guarantee Institution is a guarantee company, a Sharia guarantee company, a reinsurance company, and a Sharia reinsurance company that conduct guarantee activities.
Guarantee Company is a legal entity operating in the financial sector with the main business activity of conducting Guarantees.
Sharia Guarantee Company is a legal entity operating in the financial sector with the main business activity of conducting Sharia Guarantees.
Reinsurance Company is a legal entity operating in the financial sector with the business activity of conducting Reinsurance.
Sharia Reinsurance Company is a legal entity operating in the financial sector with the business activity of conducting Sharia Reinsurance.
Guarantor is the party conducting guarantees.
Guarantee Recipient is a financial institution or non-financial institution that has provided credit, financing, Sharia-based financing, or service contracts to the guaranteed party.
Guaranteed Party is the party that has obtained credit, financing, Sharia-based financing, or service contracts from a financial institution or non-financial institution, which is guaranteed by a Guarantee Company or Sharia Guarantee Company.
Credit is the provision of money or receivables that can be equated with it, based on a loan agreement or consensus, made by a bank or cooperative with another party that obligates the borrower to repay their debt after a certain period with interest.
Financing is the provision of financial facilities or receivables that can be equated with it, based on an agreement or consensus, made by a financing institution with another party that obligates the financed party to repay their debt after a certain period, including those conducted based on Sharia Principles.
Sharia-Based Financing is financing as referred to in laws regulating Sharia banking.
Sharia Business Unit, hereinafter referred to as UUS, is a working unit of a Guarantee Company that functions as the head office of offices or units that conduct Sharia-based Guarantee business activities.
Productive Business is an activity to produce goods and/or services that add value and increase income for the Guaranteed Party.
Gearing Ratio is the ratio between the total value of guarantees borne by the Guarantee Institution itself and the equity of the Guarantee Institution at a certain time.
Financial Institution is a bank and non-bank financial institutions.
Guarantee Certificate is proof of the approval of the Guarantee from the Guarantee Company to the Guarantee Recipient regarding the financial obligations of the Guaranteed Party.
Kafalah Certificate is proof of the approval of the Sharia Guarantee from the Sharia Guarantee Company and UUS to the Guarantee Recipient regarding the financial obligations of the Guaranteed Party.
Guarantee Service Remuneration, hereinafter abbreviated as IJP, is the amount of money received by the Guarantee Company from the Guaranteed Party in the course of Guarantee activities.
Kafalah Service Remuneration, hereinafter abbreviated as IJK, is the amount of money received by the Sharia Guarantee Company and UUS from the Guaranteed Party in the course of Sharia Guarantee activities.
Reinsurance Service Remuneration, hereinafter abbreviated as IJPU, is the amount of money received by the Reinsurance Company from the Guarantee Company in the course of Reinsurance activities.
Reinsurance Kafalah Service Remuneration, hereinafter abbreviated as IJKU, is the amount of money received by the Sharia Reinsurance Company from the Sharia Guarantee Company and UUS in the course of Sharia Reinsurance activities.
Claim is a payment demand by the Guarantee Recipient to the Guarantee Company or Sharia Guarantee Company caused by the Guaranteed Party's inability to fulfill their obligations according to the agreement, or a payment demand by the Guarantee Company or Sharia Guarantee Company to the Reinsurance Company or Sharia Reinsurance Company, which has paid the financial obligations of the Guaranteed Party to the Guarantee Recipient.
Equity is equity based on the financial accounting standards applicable in Indonesia.
Board of Directors is the organ of the Guarantee Institution authorized and fully responsible for the management of the Guarantee Institution for the interests of the Guarantee Institution, in accordance with the purpose and objectives of the Guarantee Institution, and representing the Guarantee Institution, both inside and outside of court, in accordance with the articles of association for Guarantee Institutions in the form of limited liability companies, or equivalent to the Board of Directors for Guarantee Institutions in the form of state-owned enterprises or cooperatives.
Board of Commissioners is the organ of the Guarantee Institution tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors for Guarantee Institutions in the form of limited liability companies, or equivalent to the Board of Commissioners for Guarantee Institutions in the form of state-owned enterprises or cooperatives.

CHAPTER II
BUSINESS ACTIVITIES

First Section
Scope of Business of Guarantee Companies and Sharia Guarantee Companies

Article 2
(1) Guarantee business includes:
a. guarantee of Credit, Financing, or Sharia-Based Financing provided by Financial Institutions; b. guarantee of loans distributed by savings and loan cooperatives or cooperatives having savings and loan business units to their members; and
c. guarantee of Credit and/or partnership program loans distributed by state-owned enterprises in the framework of partnership and environmental nurturing programs.
(2) In addition to the guarantee business as referred to in paragraph (1), guarantee companies may conduct:
a. guarantee of debt securities; b. guarantee of installment purchases of goods;
c. guarantee of trade transactions;
d. guarantee of procurement of goods and/or services (surety bond); e. guarantee of bank guarantees (counter bank guarantees); f. guarantee of domestic documentary credits; g. guarantee of letters of credit; h. guarantee of customs (customs bond);
i. guarantee of excise;
j. provision of management consulting services related to guarantee business activities; and k. other business activities after obtaining approval from the Financial Services Authority. (3) The guarantee business as referred to in paragraph (1) and paragraph (2) conducted by Sharia Guarantee Companies must be based on Sharia Principles. (4) In conducting guarantee business as referred to in paragraph (1), paragraph (2), and paragraph (3), Guarantee Companies and Sharia Guarantee Companies must prioritize guarantees to support micro, small, and medium enterprises as well as cooperatives. (5) To support micro, small, and medium enterprises as well as cooperatives, and/or government programs, the government may appoint or assign government-owned Guarantee Institutions. (6) Guarantee Institutions are prohibited from guaranteeing risks other than the failure to fulfill financial obligations of the Guaranteed Party.

Article 3
(1) Guarantee Companies or Sharia Guarantee Companies that will conduct business activities as referred to in Article 2 paragraph (2) letters a through j must first obtain approval from the Financial Services Authority. (2) Guarantee Companies or Sharia Guarantee Companies that will conduct business activities as referred to in paragraph (1) must:
a. meet minimum liquidity ratio requirements; and b. not be subject to business suspension sanctions by the Financial Services Authority.
(3) The application for business approval as referred to in paragraph (1) submitted by Guarantee Companies or Sharia Guarantee Companies must attach documents:
a. a letter of application for business approval signed by the Board of Directors as contained in the Appendix in Format 1 which is an integral part of this Financial Services Authority Regulation; b. a description of the business activities which at least contains:

guarantee products;
description of guarantee benefits;
calculation of the determination of IJP or IJK;
Claim mechanism; and
rights and obligations of the parties;
c. income and expenditure projections linked to business activities for a period of 3 (three) years; and
d. specimens of Guarantee Certificates or Kafalah Certificates.
(4) If necessary, the Financial Services Authority may request documents other than those required as referred to in paragraph (3).
(5) The Financial Services Authority provides approval or rejection of the application as referred to in paragraph (3) within a maximum period of 20 (twenty) working days since the application is received completely. (6) In the event that based on the Financial Services Authority's analysis there are missing documents as referred to in paragraph (3) or additional documents as referred to in paragraph (4), the Board of Directors must submit the completeness of the documents concerned within a maximum of 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (7) In the event that Guarantee Companies or Sharia Guarantee Companies have submitted the completeness of documents as referred to in paragraph (6), the Financial Services Authority provides approval or rejection. (8) If within 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (6), the Financial Services Authority has not received a response to the document completeness request, the Guarantee Company or Sharia Guarantee Company is considered to have canceled the application. (9) In the event that the Financial Services Authority rejects the application as referred to in paragraph (5), the Financial Services Authority issues a rejection letter accompanied by the reasons. (10) In the event that the application as referred to in paragraph (5) is approved, the Financial Services Authority issues an approval letter.

Article 4
(1) In the event that the business activities as referred to in Article 2 paragraph (2) are deemed to endanger the sustainability of Guarantee Companies and Sharia Guarantee Companies, the Financial Services Authority has the authority to issue written instructions to Guarantee Institutions to stop business activities. (2) Guarantee Institutions must comply with the written instructions of the Financial Services Authority as referred to in paragraph (1).

Second Section
Other Business Activities for Guarantee Companies and Sharia Guarantee Companies

Article 5
(1) Guarantee Companies or Sharia Guarantee Companies that will conduct other business activities as referred to in Article 2 paragraph (2) letter k must first obtain approval from the Financial Services Authority. (2) Guarantee Companies or Sharia Guarantee Companies that will conduct other business activities as referred to in paragraph (1) must meet the following requirements:
a. composite health rating 1 or composite health rating 2; and b. not subject to administrative sanctions in the form of business suspension by the Financial Services Authority.
(3) In the event that there are no regulations regarding the health level of Guarantee Companies and Sharia Guarantee Companies as referred to in paragraph (2) letter a, Guarantee Companies and Sharia Guarantee Companies must meet:
a. a maximum Gearing Ratio of 40 (forty) times; and b. a minimum liquidity ratio of 120% (one hundred twenty percent).
(4) The application for approval of other business activities as referred to in paragraph (1) submitted by Guarantee Companies or Sharia Guarantee Companies must attach documents:
a. a letter of application for approval of other business activities signed by the Board of Directors as contained in the Appendix in Format 2 which is an integral part of this Financial Services Authority Regulation; b. a description of the business activities to be conducted;
c. business prospect analysis; and
d. examples of business agreements to be used for operations.
(5) If necessary, the Financial Services Authority may request documents other than those required as referred to in paragraph (4).
(6) The Financial Services Authority provides approval or rejection of the application as referred to in paragraph (4) within a maximum period of 20 (twenty) working days since the application is received completely. (7) In providing approval or rejection as referred to in paragraph (6), the Financial Services Authority conducts an analysis of the business prospect as referred to in paragraph (4) letter c. (8) In the event that based on the Financial Services Authority's analysis there are missing documents as referred to in paragraph (4) or additional documents as referred to in paragraph (5), the Board of Directors must submit the completeness of the documents concerned within a maximum of 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (9) In the event that Guarantee Companies or Sharia Guarantee Companies have submitted the completeness of documents as referred to in paragraph (8), the Financial Services Authority provides approval or rejection. (10) If within 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (8), the Financial Services Authority has not received a response to the document completeness request, the Guarantee Company or Sharia Guarantee Company is considered to have canceled the application. (11) In the event that the Financial Services Authority rejects the application as referred to in paragraph (6), the rejection must be done in writing accompanied by the reasons. (12) In the event that the application as referred to in paragraph (6) is approved, the Financial Services Authority issues an approval letter. (13) In the event that other business activities conducted by Guarantee Companies or Sharia Guarantee Companies involve the marketing of financial service products, the application process as referred to in paragraph (4) may be conducted simultaneously with the application for licensing, approval, or registration of financial service product marketing.

Article 6
(1) Applications for approval as referred to in Article 3 paragraph (1) and Article 5 paragraph (1) must be submitted to the Financial Services Authority electronically through the Financial Services Authority's data communication network system. (2) Companies are required to store printed documents of the completeness of approval documents that have been submitted electronically as referred to in paragraph (1). (3) In the event that the electronic system as referred to in paragraph (1) experiences technical disturbances, the submission of approval applications is submitted to the Financial Services Authority offline. (4) Further provisions regarding electronic approval applications as referred to in paragraph (1) are established by the Financial Services Authority.

Third Section
Administrative Sanctions

Article 7
(1) Violations of the provisions as referred to in Article 2 paragraph (6), Article 3 paragraph (1), Article 4 paragraph (2), Article 5 paragraph (1), and/or Article 6 paragraph (2) are subject to administrative sanctions in the form of:
a. written warnings; b. suspension of business activities and/or suspension of UUS business activities; and/or
c. revocation of business licenses and/or revocation of UUS licenses.
(2) Violations of the provisions as referred to in Article 3 paragraph (1) and/or Article 5 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of Rp100,000,000.00 (one hundred million rupiah). (3) In addition to imposing administrative sanctions as referred to in paragraph (1) and paragraph (2), the Financial Services Authority may conduct:
a. restriction of certain business activities; b. cancellation of approval; and/or
c. re-evaluation of the principal parties.
(4) Written warning sanctions as referred to in paragraph (1) letter a may be given at most 3 (three) times consecutively with a validity period of each of at most 2 (two) months.
(5) In the event that before the expiration of the validity period of the written warning sanction as referred to in paragraph (4), the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority revokes the written warning sanction. (6) In the event that the validity period of the third written warning as referred to in paragraph (4) expires and the Guarantee Institution still does not meet the provisions causing the violation, the Financial Services Authority imposes sanctions of suspension of business activities and/or sanctions of suspension of UUS business activities. (7) Sanctions of suspension of business activities or sanctions of suspension of UUS business activities are given in writing and take effect from the date of establishment for a period of at most 6 (six) months. (8) In the event that the validity period of written warning sanctions, suspension of business activities sanctions, or suspension of UUS business activities sanctions ends on a holiday, the written warning sanctions, suspension of business activities sanctions, and/or suspension of UUS business activities sanctions apply until the first working day following. (9) In the event that before the expiration of the validity period of suspension of business activities and/or sanctions of suspension of UUS business activities as referred to in paragraph (7), the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority revokes the sanctions of suspension of business activities and/or sanctions of suspension of UUS business activities. (10) In the event that sanctions of suspension of business activities and/or sanctions of suspension of UUS business activities are still in effect and the Guarantee Institution continues to conduct Guarantee business activities, the Financial Services Authority may directly impose sanctions of revocation of business licenses and/or sanctions of revocation of UUS licenses. (11) In the event that by the end of the validity period of suspension of business activities as referred to in paragraph (7), the Guarantee Institution still does not meet the provisions causing the violation, the Financial Services Authority revokes the business licenses and/or UUS licenses of the respective Guarantee Institution. (12) The Financial Services Authority announces sanctions of suspension of business activities and/or sanctions of suspension of UUS business activities as referred to in paragraph (1) letter b, and/or sanctions of revocation of business licenses and/or sanctions of revocation of UUS licenses as referred to in paragraph (1) letter c to the public through the official information channels of the Financial Services Authority and/or Indonesian language mass media in electronic and/or printed forms distributed nationally.

CHAPTER III
CONDUCT OF GUARANTEE

First Section
Mechanism of Guarantee and Sharia Guarantee

Article 8
(1) Guarantee and Sharia Guarantee activities involve 3 (three) parties, namely the Guarantee Recipient, the Guaranteed Party, and the Guarantor.
(2) The Guarantor has the right of recourse for the fulfillment of the Guaranteed Party's financial obligations if the Guarantor has fulfilled its obligation to meet the financial rights of the Guarantee Recipient if the Guaranteed Party fails to fulfill their obligations. (3) Guarantee and Sharia Guarantee activities as referred to in paragraph (1) must be stipulated in Guarantee Certificates or Kafalah Certificates.

Second Section
Guarantee Certificates and Kafalah Certificates

Article 9
(1) Guarantee Certificates or Kafalah Certificates as referred to in Article 8 paragraph (3) must contain at least the following provisions:
a. name and address of the Guarantee Institution, Guarantee Recipient, and Guaranteed Party; b. description of guarantee benefits;
c. type of guarantee;
d. value of the guarantee; https://jdih.ojk.go.id/

e. the value of IJP or IJK; f. the guarantee period; g. the termination of the guarantee, whether from the Guarantee Company or Sharia Guarantee Company or from the Recipient of Guarantee or the Guaranteed party, including the conditions, causes, obligations of each party, and rights or benefits obtained; and h. the adjustment of the guarantee in the event of changes in the principal agreement. (2) In addition to meeting the provisions as referred to in paragraph (1), the Kafalah Certificate must contain the following matters:
a. the object of the guarantee can be all or part of:

payment obligations (dayn) arising from Sharia transactions; and/or
other matters that can be guaranteed based on Sharia Principles; and
b. a statement of offer and acceptance (ijab and qabul) that must be declared by the parties to show their will in concluding the contract (akad).
(3) The Guarantee Certificate or Kafalah Certificate as referred to in paragraph (1) may be accompanied by an attachment containing supporting documents and constitutes an inseparable unit from the Guarantee Certificate or Kafalah Certificate. (4) Every Guarantee Certificate or Kafalah Certificate issued and marketed within the legal jurisdiction of Indonesia must be made in the Indonesian language. (5) If necessary, the Guarantee Certificate or Kafalah Certificate may be issued in a foreign language or regional language alongside the Indonesian language. (6) The determination of the guarantee period as referred to in paragraph (1) letter f for the guarantee of Credit, Financing, or Financing Based on Sharia Principles is set for a maximum of 5 (five) years. (7) The guarantee period as referred to in paragraph (6) may be extended up to the duration of the Credit, Financing, or Financing Based on Sharia Principles based on the results of periodic evaluations conducted by the Guarantee Company and Sharia Guarantee Company regarding the risk profile of the guaranteed object.

Article 10
The Guarantee Certificate or Kafalah Certificate is issued after the Guarantee Institution receives the service fee.

Article 11
(1) The Guarantee Certificate or Kafalah Certificate may be issued in printed or electronic form.
(2) In the event that the Guarantee Institution will conduct business activities by issuing Guarantee Certificates or Kafalah Certificates in electronic form, the Guarantee Institution is required to report to the Financial Services Authority by attaching the following documents:
a. sample format of the Guarantee Certificate or Kafalah Certificate; b. standard operating procedures for the issuance of the Guarantee Certificate or Kafalah Certificate; and
c. verification and proof of the authenticity of electronic signatures.

Third Section
Direct Guarantee and Indirect Guarantee

Article 12
(1) Guarantee and Sharia Guarantee are conducted by means of:
a. direct guarantee; or b. indirect guarantee.
(2) Direct guarantee as referred to in paragraph (1) letter a must meet at least the following requirements:
a. there is an application for Guarantee or Sharia Guarantee from the prospective Guaranteed party to the Guarantee Company or Sharia Guarantee Company; b. a feasibility analysis of the prospective Guaranteed party has been conducted by the Guarantee Company or Sharia Guarantee Company;
c. there is approval for the guarantee of the prospective Guaranteed party by the Guarantee Company or Sharia Guarantee Company;
d. payment of IJP or IJK has been made to the Guarantee Company or Sharia Guarantee Company; and e. the Guarantee Certificate or Kafalah Certificate has been issued.
(3) Indirect guarantee as referred to in paragraph (1) letter b must meet at least the following requirements:
a. there is a cooperation agreement between the prospective Recipient of Guarantee and the Guarantee Company or Sharia Guarantee Company; b. there is an application for Guarantee or Sharia Guarantee from the prospective Guaranteed party through the prospective Recipient of Guarantee;
c. a feasibility analysis of the prospective Guaranteed party has been conducted by the prospective Recipient of Guarantee;
d. payment of IJP or IJK has been made to the Guarantee Company or Sharia Guarantee Company; and e. the Guarantee Certificate or Kafalah Certificate has been issued.
(4) In the implementation of indirect guarantee as referred to in paragraph (1) letter b, the Guarantee Company or Sharia Guarantee Company may still conduct a feasibility analysis of the prospective Guaranteed party. (5) In conducting the feasibility analysis of the prospective Guaranteed party as referred to in paragraph (2) letter b and paragraph (3) letter c for credit guarantee, financing, or financing based on Sharia Principles business activities, the Guarantee Company or Sharia Guarantee Company is required to ensure that the quality of Credit, Financing, or Financing Based on Sharia Principles is in the 'current' (lancar) category at the start of the guarantee. (6) The Guarantee Company or Sharia Guarantee Company may reject the application for Guarantee or Sharia Guarantee from the prospective Guaranteed party if the Guarantee Company or Sharia Guarantee Company assesses that the prospective Guaranteed party does not meet the guarantee requirements as referred to in paragraph (2) and paragraph (3). (7) Provisions regarding feasibility analysis as referred to in paragraph (2) letter b and paragraph (3) letter c may be conducted via conditional automatic guarantee for the disbursement of Credit, Financing, or Financing Based on Sharia Principles up to Rp50,000,000.00 (fifty million rupiah).

Article 13
(1) The cooperation agreement as referred to in Article 12 paragraph (3) letter a must contain at least:
a. the name and address of the Guarantee Company or Sharia Guarantee Company, and the Recipient of Guarantee; b. a description of the benefits of the Guarantee or Sharia Guarantee;
c. the rights and obligations of the Guarantee Company or Sharia Guarantee Company, Recipient of Guarantee, and Guaranteed party;
d. the method of payment of IJP or IJK; e. the time recognized as the time of receipt of payment of IJP or IJK; f. the cancellation of the cooperation agreement contract, whether from the side of the Guarantee Company or Sharia Guarantee Company or the Recipient of Guarantee, including conditions and causes; g. the basis for calculating Claims, conditions, and procedures for submitting Claims, including supporting documents required in the submission of Claims; h. the procedure for the implementation of the transfer of claim rights after Claims are paid by the Guarantee Company or Sharia Guarantee Company;
i. the rights of the Guarantee Company or Sharia Guarantee Company in debt collection from the Guaranteed party after Claims are paid;
j. the choice of place for dispute resolution; and k. the language used as a reference in the event of disputes or differences of opinion for Guarantee Certificates or Kafalah Certificates printed in 2 (two) or more languages. (2) The cooperation agreement as referred to in Article 12 paragraph (3) letter a is prohibited from containing provisions:
a. the Recipient of Guarantee or Guaranteed party cannot take legal action so that the Recipient of Guarantee or Guaranteed party must accept the rejection of Claim payment; and/or b. restrictions on legal action for the parties in the event of disputes regarding the provisions of the cooperation agreement.

Article 14
The conditions and procedures for submitting Claims as referred to in Article 13 paragraph (1) letter f contain at least:
a. the time limit for submitting Claims; b. the time limit for requests for document completeness by the Guarantee Company and Sharia Guarantee Company in the event of missing documents;
c. the time limit for fulfilling all Claim document completeness by the Recipient of Guarantee; and
d. the consequences of not fulfilling the time limit provisions as referred to in letter c.

Article 15
(1) Guarantee, Sharia Guarantee, Reinsurance, and Sharia Reinsurance are binding and cannot be unilaterally cancelled.
(2) Guarantee and Sharia Guarantee may be cancelled and excluded from the provisions as referred to in paragraph (1), in the event:
a. the Recipient of Guarantee and/or Guaranteed party is proven to have provided false information, data, or documents; b. the Recipient of Guarantee and/or Guaranteed party is proven to have concealed information, data, or documents that do not comply with Guarantee or Sharia Guarantee provisions; and/or
c. bad faith on the part of the Recipient of Guarantee and/or Guaranteed party is proven.
(3) Reinsurance and Sharia Reinsurance may be cancelled in the event the cancellation of Guarantee or Sharia Guarantee occurs due to the fulfillment of the provisions as referred to in paragraph (2).

Fourth Section
Joint Guarantee

Article 16
(1) Guarantee and Sharia Guarantee may be conducted in the form of joint guarantee.
(2) Joint guarantee as referred to in paragraph (1) is a form of Guarantee or Sharia Guarantee business activity conducted by 2 (two) or more Guarantee Companies, Sharia Guarantee Companies, or Sharia Business Units (UUS) to conduct Guarantee or Sharia Guarantee business activities regarding the financial obligations of the Guaranteed party. (3) In the event that joint guarantee activities are conducted based on Sharia Principles, the chairman and members are Sharia Guarantee Companies or UUS. (4) Joint guarantee as referred to in paragraph (1) must meet the following provisions:
a. the Guarantee Certificate or Kafalah Certificate states the name of the Guarantee Company, Sharia Guarantee Company, or UUS and the insurance portion of each member of the joint guarantee and their membership status; b. the issuance of the Guarantee Certificate or Kafalah Certificate is conducted by the chairman; and
c. the chairman is fully responsible to the Recipient of Guarantee and Guaranteed party for the joint guarantee.
(5) The joint guarantee mechanism as referred to in paragraph (1) must be stipulated in an agreement between the parties as Guarantors containing at least:
a. the identity of the parties as Guarantors, where there are those acting as chairman and members; b. the chairman bears the largest guarantee portion;
c. the chairman is responsible for the implementation of joint guarantee activities;
d. the proportion of IJP or IJK income between the parties as Guarantors; e. the method of payment of IJP or IJK by the Guaranteed party; f. the procedure for receiving and forwarding IJP or IJK between the parties as Guarantors; g. the Claim payment process is conducted by the chairman or, with the chairman's approval, can be conducted by other members; h. the proportion of Claims to be paid to the Recipient of Guarantee between the parties as Guarantors in the event of a Claim;
i. the responsibility and obligations of each party in the guarantee approval process for Guarantee or Sharia Guarantee; and
j. the responsibility and obligations of each party in the verification process of Claims submitted by the Recipient of Guarantee.
(6) Guarantee Companies, Sharia Guarantee Companies, or UUS that will conduct joint guarantee activities as referred to in paragraph (1) are required to submit a reporting registration application to the Financial Services Authority. (7) The reporting registration application for joint guarantee activities as referred to in paragraph (6) submitted by Guarantee Companies, Sharia Guarantee Companies, or UUS must attach documents:
a. a letter of application for reporting registration of joint guarantee activities signed by the Board of Directors as stated in the Appendix in format 3 which is an inseparable part of this Financial Services Authority Regulation; b. a description of the joint guarantee activities to be implemented;
c. a description of the prospective Recipient of Guarantee, chairman, and members as well as the insurance portion of each member of the joint guarantee;
d. business prospect analysis; and e. draft cooperation agreement.
(8) If necessary, the Financial Services Authority may request documents other than those required as referred to in paragraph (7).
(9) The Financial Services Authority issues a letter of reporting registration for joint guarantee activities within a maximum of 20 (twenty) working days since the application is received in complete form. (10) If within the period as referred to in paragraph (9) the Financial Services Authority does not issue a letter of reporting registration for joint guarantee activities, the Guarantee Company, Sharia Guarantee Company, or UUS may conduct joint guarantee activities.

Article 17
(1) The Guarantee Institution may conduct marketing cooperation with Financial Institutions.
(2) Marketing cooperation as referred to in paragraph (1) must be implemented in accordance with the scope of business activities of the Guarantee Institution and Financial Institution as referred to in paragraph (1). (3) The Guarantee Institution that will conduct marketing cooperation as referred to in paragraph (1) is required to submit a reporting registration application to the Financial Services Authority. (4) The reporting registration application for marketing cooperation activities as referred to in paragraph (3) submitted by the Guarantee Institution must attach documents:
a. a letter of application for reporting registration of marketing cooperation activities signed by the Board of Directors as stated in the Appendix in format 4 which is an inseparable part of this Financial Services Authority Regulation; b. a description of the mechanism of marketing cooperation to be implemented;
c. a description of the prospective Recipient of Guarantee, Guarantee Institution, and Financial Institution as referred to in paragraph (1), as well as the scope of responsibility of each party;
d. business prospect analysis; and e. draft marketing cooperation agreement.
(5) If necessary, the Financial Services Authority may request documents other than those required as referred to in paragraph (4).
(6) The Financial Services Authority issues a letter of reporting registration for marketing cooperation activities within a maximum of 20 (twenty) working days after the report as referred to in paragraph (5) is received. (7) If within the period as referred to in paragraph (6) the Financial Services Authority does not issue a letter of reporting registration for marketing cooperation activities, the Guarantee Institution may conduct the marketing cooperation activities.

Fifth Section
Sharia Guarantee Contract

Article 18
Sharia Guarantee Companies, Sharia Reinsurance Companies, and UUS are required to apply the following basic principles:
a. the fulfillment of the principles of justice ('adl), trustworthiness (amanah), balance (tawazun), public interest (maslahah), and universality (syumul); and b. the absence of riba, maisir, gharar, zalim, risywah, maksiat, haram objects, and other matters contrary to Sharia Principles.

Article 19
Sharia Guarantee agreements and Sharia Reinsurance agreements must use the kafalah bil ujrah contract.

Article 20
Guarantee Companies may conduct part of their business activities based on Sharia Principles by forming UUS in accordance with statutory regulations.

Sixth Section
Reinsurance and Sharia Reinsurance

Article 21
(1) Guarantee Companies and Sharia Guarantee Companies are required to mitigate risks by reinsuring their guarantees.
(2) Reinsurance as referred to in paragraph (1) is conducted to fulfill the financial obligations of the Guarantee Company or Sharia Guarantee Company in the event:
a. the Guarantee Company or Sharia Guarantee Company has fulfilled its obligations to the Recipient of Guarantee; or b. the Guarantee Company or Sharia Guarantee Company cannot fulfill its obligations. (3) Reinsurance as referred to in paragraph (1) is conducted by Reinsurance Companies or Sharia Reinsurance Companies. (4) In the event that reinsurance support from Reinsurance Companies or Sharia Reinsurance Companies as referred to in paragraph (3) is not obtained, risk mitigation for Guarantee Companies and Sharia Guarantee Companies is obtained from reinsurance companies. (5) Reinsurance activities as referred to in paragraph (3) must be stipulated in a written Reinsurance and Sharia Reinsurance agreement in printed or electronic form. (6) In the event:
a. risk mitigation with a guarantee value of more than Rp500,000,000.00 (five hundred million rupiah); or b. risk mitigation as referred to in paragraph (1) is not yet optimal, guarantees must be accompanied by collateral in the form of cash collateral and/or fixed assets of at least 25% (twenty-five percent) of the guarantee value. (7) Collateral as referred to in paragraph (6) must be pledged in accordance with statutory regulations.

Seventh Section
Utilization of Information Technology

Article 22
(1) The Guarantee Institution is required to have a website.
(2) The website as referred to in paragraph (1) must contain at least the following information:
a. business license; b. organizational structure and names of Guarantee Institution officials, at least the Board of Commissioners, Sharia supervisory board (if any), Board of Directors, committees formed by the Guarantee Institution, and officials one level below the Board of Directors;
c. address, branch office network, email address, office telephone number, and names of branch office officials;
d. summary of product information from all marketed products; e. procedures and methods of transaction; f. information on service procedures and complaint resolution; g. list of active guarantee agents; h. implementation of corporate governance contained in the annual report;
i. audited annual financial reports;
j. information regarding UUS for Guarantee Companies that have UUS; and k. other information mandated by statutory regulations and/or needs of the Guarantee Institution.
(3) The Guarantee Institution is required to update the information presented on the website as referred to in paragraph (1) within a maximum of 20 (twenty) working days after changes in information as referred to in paragraph (2) occur.

Eighth Section
Administrative Sanctions

Article 23
(1) Violations of the provisions as referred to in Article 8 paragraph (3), Article 11 paragraph (2), Article 12 paragraph (5), Article 13, Article 16 paragraph (4), paragraph (6), Article 17 paragraph (2), paragraph (3), Article 18, Article 19, Article 21 paragraph (1), paragraph (5), paragraph (6), paragraph (7) and/or Article 22 paragraph (1), paragraph (3), are subject to administrative sanctions in the form of:
a. written warning; and/or b. suspension of business activities and/or suspension of UUS business activities.
(2) In addition to imposing administrative sanctions as referred to in paragraph (1), the Financial Services Authority may conduct:
a. restriction of certain business activities; b. cancellation of approval; and/or
c. re-evaluation of the principal party.
(3) Written warning sanctions as referred to in paragraph (1) letter a may be given for a maximum of 3 (three) consecutive times with a validity period of each of no more than 2 (two) months. (4) In the event that before the end of the validity period of the written warning sanction as referred to in paragraph (3) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority revokes the written warning sanction. (5) In the event that the validity period of the third written warning as referred to in paragraph (3) expires and the Guarantee Institution still does not fulfill the violation cause provisions, the Financial Services Authority imposes sanctions of suspension of business activities and/or suspension of UUS business activities. (6) Sanctions of suspension of business activities and/or suspension of UUS business activities are given in writing and are valid from the date of establishment for a maximum period of 6 (six) months. (7) In the event that the validity period of the written warning sanction, suspension of business activities sanction, and/or suspension of UUS business activities sanction ends on a holiday, the written warning sanction, suspension of business activities sanction, and/or suspension of UUS business activities sanction are valid until the first working day following. (8) In the event that before the end of the validity period of suspension of business activities and/or suspension of UUS business activities sanctions as referred to in paragraph (6) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority revokes the sanctions of suspension of business activities and/or suspension of UUS business activities. (9) The Financial Services Authority announces sanctions of suspension of business activities and/or suspension of UUS business activities as referred to in paragraph (1) letter b to the public through official Financial Services Authority information channels and/or Indonesian language mass media in electronic and/or printed form distributed nationally.

CHAPTER IV
SERVICE FEES

First Section
General

Article 24
(1) In conducting its business activities, the Guarantee Company receives IJP.
(2) In conducting its business activities, the Sharia Guarantee Company and UUS receive IJK.
(3) In conducting its business activities, the Reinsurance Company receives IJPU.
(4) In conducting its business activities, the Sharia Reinsurance Company receives IJKU.

Article 25
(1) The Guarantee Institution is required to set tariff rates for IJP, IJK, IJPU, and IJKU by considering at least:
a. the risk guaranteed, which is calculated at least based on:

Claim ratio;
type of Credit, Financing, or Financing Based on Sharia Principles;
scope of guarantee; and
guarantee period;
b. acquisition costs, general administration, operational, and marketing costs; and
c. profit.
(2) Provisions regarding IJP or IJK as referred to in paragraph (1) for Guarantee and Sharia Guarantee that are government programs are implemented in accordance with statutory regulations. (3) Provisions regarding the magnitude of IJP, IJK, IJPU, and IJKU tariff rates as referred to in paragraph (1) are established by the Financial Services Authority.

Article 26
Total income obtained by the Guarantee Company or Sharia Guarantee Company from all other business activities as referred to in Article 2 paragraph (2) letter k is prohibited from exceeding the total income obtained by the Guarantee Company or Sharia Guarantee Company https://jdih.ojk.go.id/

Sharia principles for all guarantee business activities as referred to in Article 2 paragraph (1) and paragraph (2) letters a through j.

Article 27
(1) Guarantee Institutions are prohibited from providing acquisition costs other than those related to business acquisition.
(2) Guarantee Institutions are prohibited from setting acquisition costs as referred to in paragraph (1) exceeding 10% (ten percent) of the value of IJP, IJK, IJPU, or IJKU.
(3) The Financial Services Authority may adjust the amount of acquisition costs as referred to in paragraph (2) based on the evaluation results.
(4) Provisions regarding the adjustment of the amount of acquisition costs as referred to in paragraph (3) are determined by the Financial Services Authority.

Second Section
Administrative Sanctions

Article 28
(1) Violations of the provisions as referred to in Article 25 paragraph (1), Article 26, and/or Article 27 paragraph (1), paragraph (2) shall be subject to administrative sanctions in the form of:
a. written warnings; and/or b. suspension of business activities and/or suspension of UUS business activities.
(2) In addition to imposing administrative sanctions as referred to in paragraph (1), the Financial Services Authority may conduct:
a. restriction of certain business activities; b. cancellation of approval; and/or
c. re-evaluation of the principal party.
(3) Written warning sanctions as referred to in paragraph (1) letter a may be given for a maximum of 3 (three) consecutive times with a validity period of each of no more than 2 (two) months. (4) In the event that before the expiration of the validity period of the written warning sanction as referred to in paragraph (3) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the written warning sanction. (5) In the event that the validity period of the third written warning as referred to in paragraph (3) expires and the Guarantee Institution still fails to meet the provisions regarding the cause of the violation, the Financial Services Authority shall impose sanctions of suspension of business activities and/or suspension of UUS business activities. (6) Sanctions of suspension of business activities and/or sanctions of suspension of UUS business activities are given in writing and are valid from the date of determination for a period of no more than 6 (six) months. (7) In the event that the validity period of the written warning sanction, the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities ends on a holiday, the written warning sanction, the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities shall be valid until the first working day following. (8) In the event that before the expiration of the validity period of the suspension of business activities and/or the sanction of suspension of UUS business activities as referred to in paragraph (6) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities. (9) The Financial Services Authority announces the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities as referred to in paragraph (1) letter b to the public through the official information channels of the Financial Services Authority and/or Indonesian language mass media in electronic and/or printed form distributed nationally.

CHAPTER V
RESERVES, CLAIMS, CLAIM PAYMENT, AND TRANSFER OF CLAIM RIGHTS

First Section
Reserves

Article 29
Guarantee Institutions are required to have Claim reserves and general reserves.

Article 30
(1) The calculation of Claim reserves as referred to in Article 29 is conducted based on the applicable financial accounting standards in Indonesia.
(2) Guarantee Institutions also calculate Claim reserves by comparing between:
a. 0.01% (zero point zero one percent) of the value of guarantees borne by themselves; and b. the sum of 100% (one hundred percent) of the value of guarantees borne by themselves at the time the Claim is reported, and Claims that have occurred but have not been reported, whichever is greater. (3) Claims that have occurred but have not been reported as referred to in paragraph (2) letter b are calculated based on the average of borne claims paid in the last 3 (three) months. (4) In the event that the calculation result as referred to in paragraph (1) is smaller than the calculation result as referred to in paragraph (2), the Guarantee Institution uses the Claim reserve calculation as referred to in paragraph (2).

Article 31
(1) Guarantee Institutions are required to allocate general reserves of at least 25% (twenty-five percent) of net profit or the difference in business results at the end of each annual reporting period. (2) In the event that the accumulated general reserves as referred to in paragraph (1) have reached 50% (fifty percent) of paid-up capital, the policy for allocating general reserves may follow the policy of the General Meeting of Shareholders or its equivalent. (3) General reserves as referred to in paragraph (1) may only be used to cover losses. (4) General reserves as referred to in paragraph (1) are allocated based on the entity of the Guarantee Company and the Sharia Guarantee Company.

Second Section
Claims

Article 32
(1) Claim submissions by the Guarantee Recipient to the Guarantee Company or Sharia Guarantee Company can be made if the Guaranteed party fails to meet financial obligations.
(2) Claim submissions by the Guarantee Company or Sharia Guarantee Company to the Reinsurance Company or Sharia Reinsurance Company are conducted after the Guarantee Company or Sharia Guarantee Company pays the financial obligations of the Guaranteed party to the Guarantee Recipient.

Third Section
Claim Payment

Article 33
(1) Guarantee Institutions are prohibited from taking actions that can delay the settlement or payment of Claims and from taking actions that should not be taken, thereby causing delays in settlement or payment of Claims. (2) Guarantee Institutions are required to provide approval or rejection of claim payment requests within a maximum of 15 (fifteen) working days since the claim payment request is received completely or in accordance with the time period stated in the Guarantee Certificate, Kafalah Certificate, or cooperation agreement, whichever is shorter. (3) Guarantee Institutions are required to pay Claims within a maximum of 15 (fifteen) working days since the approval as referred to in paragraph (2) is given or in accordance with the time period stated in the Guarantee Certificate, Kafalah Certificate, or cooperation agreement, whichever is shorter. (4) In the event that the claim payment request as referred to in paragraph (2) requires agreement from the Guaranteed party, the request must be accompanied by evidence of agreement from the Guaranteed party. (5) Provisions regarding the time period for approval or rejection of claim payment requests as referred to in paragraph (2) and the time period for Claim payment as referred to in paragraph (3) for Guarantee Institutions that are central government or local government programs are implemented in accordance with applicable legislation. (6) Guarantee Institutions are prohibited from making Claim payments for guarantees that do not comply with the main agreement.

Fourth Section
Transfer of Claim Rights

Article 34
(1) Since the Claim is paid by the Guarantee Company or Sharia Guarantee Company, the claim rights of the Guarantee Recipient against the Guaranteed party transfer to the claim rights of the Guarantee Company or Sharia Guarantee Company. (2) In the event of a transfer of claim rights as referred to in paragraph (1), the Guarantee Company or Sharia Guarantee Company is required to make an agreement with the Guarantee Recipient so that the Guarantee Recipient conducts collection efforts for the claim rights of the Guarantee Company or Sharia Guarantee Company on behalf of and for the account of the Guarantee Company or Sharia Guarantee Company. (3) Recovery results based on subrogation are divided between the Guarantee Company or Sharia Guarantee Company and the Guarantee Recipient based on mutual agreement, considering the principles of proportionality and fairness.

Fifth Section
Administrative Sanctions

Article 35
(1) Violations of the provisions as referred to in Article 29, Article 31 paragraph (1), Article 33 paragraph (1), paragraph (2), paragraph (3), paragraph (6), and/or Article 34 paragraph (2) shall be subject to administrative sanctions in the form of:
a. written warnings; and/or b. suspension of business activities and/or suspension of UUS business activities.
(2) In addition to imposing administrative sanctions as referred to in paragraph (1), the Financial Services Authority may conduct:
a. restriction of certain business activities; b. cancellation of approval; and/or
c. re-evaluation of the principal party.
(3) Written warning sanctions as referred to in paragraph (1) letter a may be given for a maximum of 3 (three) consecutive times with a validity period of each of no more than 2 (two) months. (4) In the event that before the expiration of the validity period of the written warning sanction as referred to in paragraph (3) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the written warning sanction. (5) In the event that the validity period of the third written warning as referred to in paragraph (3) expires and the Guarantee Institution still fails to meet the provisions regarding the cause of the violation, the Financial Services Authority shall impose sanctions of suspension of business activities and/or suspension of UUS business activities. (6) Sanctions of suspension of business activities and/or sanctions of suspension of UUS business activities are given in writing and are valid from the date of determination for a period of no more than 6 (six) months. (7) In the event that the validity period of the written warning sanction, the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities ends on a holiday, the written warning sanction, the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities shall be valid until the first working day following. (8) In the event that before the expiration of the validity period of the suspension of business activities and/or the sanction of suspension of UUS business activities as referred to in paragraph (6) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities. (9) The Financial Services Authority announces the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities as referred to in paragraph (1) letter b to the public through the official information channels of the Financial Services Authority and/or Indonesian language mass media in electronic and/or printed form distributed nationally.

CHAPTER VI
OWN RETENTION

First Section
General

Article 36
(1) Guarantee Companies or Sharia Guarantee Companies are required to have own retention for every guarantee.
(2) Own retention as referred to in paragraph (1) must be based on risk profiles and losses created by the Guarantee Company or Sharia Guarantee Company in an orderly, systematic, relevant, and accurate manner. (3) Provisions on own retention as referred to in paragraph (1) consist of:
a. minimum own retention provisions; and b. maximum own retention provisions.
(4) Minimum own retention as referred to in paragraph (3) letter a must be determined at least 20% (twenty percent) of the guarantee value.
(5) Maximum own retention as referred to in paragraph (3) letter b for each Guaranteed party is prohibited from exceeding 10% (ten percent) of the Equity of the Guarantee Company or Sharia Guarantee Company. (6) In the event that the value of minimum own retention as referred to in paragraph (4) exceeds the value of maximum own retention as referred to in paragraph (5), the provisions on maximum own retention as referred to in paragraph (5) shall apply.

Article 37
(1) Guarantee Companies and Sharia Guarantee Companies are required to have risk sharing with the Guarantee Recipient in the implementation of Credit Guarantees, Financing, Sharia-Based Financing, and trade transaction guarantees. (2) Guarantee Companies and Sharia Guarantee Companies are required to determine the risk borne by the Guarantee Recipient for Credit, Financing, and Sharia-Based Financing guarantees as referred to in paragraph (1) of at least 25% (twenty-five percent) of the outstanding balance value of Credit, Financing, or Sharia-Based Financing at the time the Claim right arises. (3) Guarantee Companies and Sharia Guarantee Companies are required to determine the risk borne by the Guarantee Recipient for trade transaction guarantees as referred to in paragraph (1) of at least 10% (ten percent) of the contract value at the time the Claim right arises. (4) The portion of risk borne by the Guarantee Recipient as referred to in paragraph (2) and paragraph (3) must be stated in the Guarantee Certificate or Kafalah Certificate. (5) Guarantee Companies and Sharia Guarantee Companies are prohibited from accepting risk coverage for the portion of risk borne by the Guarantee Recipient as referred to in paragraph (2) and paragraph (3).

Second Section
Administrative Sanctions

Article 38
(1) Violations of the provisions as referred to in Article 36 paragraph (1), paragraph (2), paragraph (4), paragraph (5), and/or Article 37 shall be subject to administrative sanctions in the form of:
a. written warnings; and/or b. suspension of business activities and/or suspension of UUS business activities.
(2) In addition to imposing administrative sanctions as referred to in paragraph (1), the Financial Services Authority may conduct:
a. restriction of certain business activities; b. cancellation of approval; and/or
c. re-evaluation of the principal party.
(3) Written warning sanctions as referred to in paragraph (1) letter a may be given for a maximum of 3 (three) consecutive times with a validity period of each of no more than 2 (two) months. (4) In the event that before the expiration of the validity period of the written warning sanction as referred to in paragraph (3) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the written warning sanction. (5) In the event that the validity period of the third written warning as referred to in paragraph (3) expires and the Guarantee Institution still fails to meet the provisions regarding the cause of the violation, the Financial Services Authority shall impose sanctions of suspension of business activities and/or suspension of UUS business activities. (6) Sanctions of suspension of business activities and/or sanctions of suspension of UUS business activities are given in writing and are valid from the date of determination for a period of no more than 6 (six) months. (7) In the event that the validity period of the written warning sanction, the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities ends on a holiday, the written warning sanction, the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities shall be valid until the first working day following. (8) In the event that before the expiration of the validity period of the suspension of business activities and/or the sanction of suspension of UUS business activities as referred to in paragraph (6) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities. (9) The Financial Services Authority announces the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities as referred to in paragraph (1) letter b to the public through the official information channels of the Financial Services Authority and/or Indonesian language mass media in electronic and/or printed form distributed nationally.

CHAPTER VII
GUARANTEE CAPACITY AND GUARANTEE VALUE FOR PRODUCTIVE BUSINESSES

First Section
General

Article 39
(1) Guarantee Institutions are required to optimize guarantee capacity.
(2) Guarantee capacity as referred to in paragraph (1) is measured by the Gearing Ratio.
(3) Guarantee Institutions are required to maintain a total Gearing Ratio of no more than 40 (forty) times.

Article 40
(1) Guarantee Companies and Sharia Guarantee Companies are required to have a guarantee value for Productive Businesses of at least 25% (twenty-five percent) of the total guarantee value. (2) The guarantee value for Productive Businesses as referred to in paragraph (1) must be fulfilled within a maximum period of 2 (two) years since obtaining the business license.

Second Section
Administrative Sanctions

Article 41
(1) Violations of the provisions as referred to in Article 39 paragraph (1), paragraph (3), and/or Article 40 shall be subject to administrative sanctions in the form of:
a. written warnings; and/or b. suspension of business activities and/or suspension of UUS business activities.
(2) In addition to imposing administrative sanctions as referred to in paragraph (1), the Financial Services Authority may conduct:
a. restriction of certain business activities; b. cancellation of approval; and/or
c. re-evaluation of the principal party.
(3) Written warning sanctions as referred to in paragraph (1) letter a may be given for a maximum of 3 (three) consecutive times with a validity period of each of no more than 2 (two) months. (4) In the event that before the expiration of the validity period of the written warning sanction as referred to in paragraph (3) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the written warning sanction. (5) In the event that the validity period of the third written warning as referred to in paragraph (3) expires and the Guarantee Institution still fails to meet the provisions regarding the cause of the violation, the Financial Services Authority shall impose sanctions of suspension of business activities and/or suspension of UUS business activities. (6) Sanctions of suspension of business activities and/or sanctions of suspension of UUS business activities are given in writing and are valid from the date of determination for a period of no more than 6 (six) months. (7) In the event that the validity period of the written warning sanction, the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities ends on a holiday, the written warning sanction, the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities shall be valid until the first working day following. (8) In the event that before the expiration of the validity period of the suspension of business activities and/or the sanction of suspension of UUS business activities as referred to in paragraph (6) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities. (9) The Financial Services Authority announces the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities as referred to in paragraph (1) letter b to the public through the official information channels of the Financial Services Authority and/or Indonesian language mass media in electronic and/or printed form distributed nationally.

CHAPTER VIII
PROHIBITIONS

Article 42
(1) Guarantee Institutions are prohibited from:
a. providing loans; or b. receiving loans.
(2) Provisions as referred to in paragraph (1) letter a are excepted for Guarantee Companies and Sharia Guarantee Companies in the context of conducting guarantee restructuring for micro, small, and medium enterprises, as well as cooperatives. (3) Provisions as referred to in paragraph (1) letter b are excepted for Guarantee Companies and Sharia Guarantee Companies that receive loans by issuing mandatory convertible bonds. (4) Violations of the provisions as referred to in paragraph (1) shall be subject to administrative sanctions in the form of:
a. written warnings; and/or b. suspension of business activities and/or suspension of UUS business activities.
(5) In addition to imposing administrative sanctions as referred to in paragraph (4), the Financial Services Authority may conduct:
a. restriction of certain business activities; b. cancellation of approval; and/or
c. re-evaluation of the principal party.
(6) Written warning sanctions as referred to in paragraph (4) letter a may be given for a maximum of 3 (three) consecutive times with a validity period of each of no more than 2 (two) months. (7) In the event that before the expiration of the validity period of the written warning sanction as referred to in paragraph (6) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the written warning sanction. (8) In the event that the validity period of the third written warning as referred to in paragraph (6) expires and the Guarantee Institution still fails to meet the provisions regarding the cause of the violation, the Financial Services Authority shall impose sanctions of suspension of business activities and/or suspension of UUS business activities. (9) Sanctions of suspension of business activities and/or sanctions of suspension of UUS business activities are given in writing and are valid from the date of determination for a period of no more than 6 (six) months. (10) In the event that the validity period of the written warning sanction, the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities ends on a holiday, the written warning sanction, the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities shall be valid until the first working day following. (11) In the event that before the expiration of the validity period of the suspension of business activities or the sanction of suspension of UUS business activities as referred to in paragraph (9) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities. (12) The Financial Services Authority announces the sanction of suspension of business activities and/or the sanction of suspension of UUS business activities as referred to in paragraph (1) letter b to the public through the official information channels of the Financial Services Authority and/or Indonesian language mass media in electronic and/or printed form distributed nationally.

CHAPTER IX
EQUITY

First Section
General

Article 43
(1) Guarantee Companies or Sharia Guarantee Companies at the district/city level are required to have Equity of at least Rp50,000,000,000.00 (fifty billion rupiah).

(2) Guarantee Companies or Sharia Guarantee Companies at the provincial level must have Equity of at least IDR 100,000,000,000.00 (one hundred billion rupiah).
(3) Guarantee Companies or Sharia Guarantee Companies at the national level must have Equity of at least IDR 250,000,000,000.00 (two hundred fifty billion rupiah).
(4) Reinsurance Companies or Sharia Reinsurance Companies must have Equity of at least IDR 500,000,000,000.00 (five hundred billion rupiah).
(5) The provisions as referred to in paragraphs (1) through (4) shall be fulfilled in stages:
a. the first stage of at least 75% (seventy-five percent) of the minimum Equity provisions as referred to in paragraphs (1) through (4) must be fulfilled no later than December 31, 2026; and b. the second stage of at least 100% (one hundred percent) of the minimum Equity provisions as referred to in paragraphs (1) through (4) must be fulfilled no later than December 31, 2028. (6) Sharia Credit Unions of Guarantee Companies at the district/city level must have Equity of at least IDR 10,000,000,000.00 (ten billion rupiah). (7) Sharia Credit Unions of Guarantee Companies at the provincial level must have Equity of at least IDR 15,000,000,000.00 (fifteen billion rupiah). (8) Sharia Credit Unions of Guarantee Companies at the national level must have Equity of at least IDR 30,000,000,000.00 (thirty billion rupiah).

Article 44
(1) Guarantee Companies or Sharia Guarantee Companies are prohibited from distributing dividends or providing remuneration in any form to shareholders if:
a. they do not meet the minimum Equity provisions as referred to in Article 43 paragraphs (1) through (3) and paragraphs (6) through (8); and/or b. the Gearing Ratio exceeds 40 (forty) times. (2) Reinsurance Companies or Sharia Reinsurance Companies are prohibited from distributing dividends or providing remuneration in any form to shareholders if:
a. they do not meet the minimum Equity provisions as referred to in Article 43 paragraph (4); and/or b. the Gearing Ratio exceeds 40 (forty) times.

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

Part Two
Administrative Sanctions

Article 45
(1) Violations of the provisions as referred to in Article 43 paragraphs (1), (2), (3), (4), (6), (7), (8), and/or Article 44 shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of business activities and/or suspension of Sharia Credit Union business activities; and/or
c. revocation of business license and/or revocation of Sharia Credit Union license.
(2) In addition to imposing administrative sanctions as referred to in paragraph (1), the Financial Services Authority may:
a. restrict certain business activities; b. cancel approval; and/or
c. reassess the principal party.
(3) Written warning sanctions as referred to in paragraph (1) letter a may be given up to 3 (three) times consecutively with a validity period of each of no more than 2 (two) months. (4) In the event that before the expiration of the written warning sanction period as referred to in paragraph (3) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the written warning sanction. (5) In the event that the validity period of the third written warning as referred to in paragraph (3) expires and the Guarantee Institution still does not meet the provisions regarding the cause of the violation, the Financial Services Authority shall impose sanctions of suspension of business activities and/or suspension of Sharia Credit Union business activities. (6) Sanctions of suspension of business activities and/or suspension of Sharia Credit Union business activities are given in writing and take effect from the date of determination for a period of no more than 6 (six) months. (7) In the event that the validity period of the written warning sanction, suspension of business activities sanction, and/or suspension of Sharia Credit Union business activities sanction ends on a holiday, the written warning sanction, suspension of business activities sanction, and/or suspension of Sharia Credit Union business activities sanction shall remain valid until the first working day following. (8) In the event that before the expiration of the suspension of business activities period and/or Sharia Credit Union business activities sanction period as referred to in paragraph (6) the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the suspension of business activities sanction and/or suspension of Sharia Credit Union business activities sanction. (9) In the event that the suspension of business activities sanction is still in effect and the Guarantee Institution continues to conduct Guarantee business, the Financial Services Authority may directly impose sanctions of revocation of business license and/or revocation of Sharia Credit Union license. (10) In the event that by the end of the suspension of business activities period as referred to in paragraph (6) the Guarantee Institution has not yet met the provisions regarding the cause of the violation, the Financial Services Authority shall revoke the business license and/or Sharia Credit Union license of the relevant Guarantee Institution. (11) The Financial Services Authority may announce sanctions of suspension of business activities or suspension of Sharia Credit Union business activities as referred to in paragraph (1) letter b, and/or sanctions of revocation of business license or revocation of Sharia Credit Union license as referred to in paragraph (1) letter c to the public through the official information channels of the Financial Services Authority and/or Indonesian-language mass media in electronic
and/or printed form distributed nationally.

CHAPTER X
GUARANTEE INSTITUTION INVESTMENTS

Part One
Types of Investments

Article 46
(1) Guarantee Companies and Reinsurance Companies are prohibited from placing investments other than in the following types of investments:
a. deposits at banks; b. government securities;
c. securities issued by Bank Indonesia;
d. corporate bonds; e. regional bonds; f. shares listed on the Indonesia Stock Exchange; g. asset-backed securities; h. mutual funds;
i. medium term notes;
j. repurchase agreements; k. real estate investment funds in the form of collective investment contracts;
l. infrastructure investment funds in the form of collective investment contracts;
m. land and buildings; n. direct participation in companies in the financial services sector in Indonesia; and/or o. pure gold.
(2) Types of investments that may be placed by Guarantee Companies and Reinsurance Companies as referred to in paragraph (1) also include types of investments using Sharia Principles.

Article 47
Sharia Guarantee Companies, Sharia Reinsurance Companies, and Sharia Credit Unions are prohibited from placing investments other than in the following types of investments:
a. deposits at Sharia commercial banks, Sharia business units of commercial banks, and Sharia people's economic banks; b. Sharia government securities;
c. Sharia securities issued by Bank Indonesia;
d. corporate sukuk; e. regional sukuk; f. shares listed on the Indonesia Stock Exchange and included in the list of Sharia securities established by the Financial Services Authority; g. Sharia asset-backed securities; h. Sharia mutual funds;
i. Sharia medium term notes;
j. Sharia repurchase agreements; k. Sharia real estate investment funds in the form of collective investment contracts;
l. Sharia infrastructure investment funds in the form of collective investment contracts;
m. land and buildings; n. direct participation in companies in the Sharia financial services sector in Indonesia; and/or o. pure gold.

Article 48
(1) Investments in the form of corporate bonds as referred to in Article 46 paragraph (1) letter d and corporate sukuk as referred to in Article 47 letter d must meet the following provisions:
a. listed on the Indonesia Stock Exchange; and b. have an investment grade rating in the last 3 (three) years from a securities rating company that has obtained a business license from the Financial Services Authority. (2) Investments in regional bonds as referred to in Article 46 paragraph (1) letter e and regional sukuk as referred to in Article 47 letter e must meet the following provisions:
a. have obtained an effective statement from the Financial Services Authority; and b. have an investment grade rating from a securities rating company that has obtained a business license from the Financial Services Authority. (3) Investments in the form of asset-backed securities as referred to in Article 46 paragraph (1) letter g and Sharia asset-backed securities as referred to in Article 47 letter g must meet the following provisions:
a. listed on the Indonesia Stock Exchange; b. have an investment grade rating from a securities rating company that has obtained a business license from the Financial Services Authority; and
c. are conducted through a public offering as regulated in legislation in the capital market sector.

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(4) Investments in the form of medium term notes as referred to in Article 46 paragraph (1) letter i and Sharia medium term notes as referred to in Article 47 letter i must meet the following provisions:
a. registered at the Indonesia Central Securities Depository; b. have a monitoring agent registered as a trustee with the Financial Services Authority; and
c. have an investment grade rating issued by a securities rating company that has obtained a business license from the Financial Services Authority.
(5) Investments in the form of repurchase agreements as referred to in Article 46 paragraph (1) letter j and Sharia repurchase agreements as referred to in Article 47 letter j must meet the following provisions:
a. every repurchase agreement and Sharia repurchase agreement transaction results in a change in security ownership; b. use a written agreement contract applying the Global Master Repurchase Agreement Indonesia issued by the Financial Services Authority or another party recognized by the Financial Services Authority;
c. collateral types are limited to government securities, securities issued by Bank Indonesia, and/or corporate bonds with an investment grade rating issued by a securities rating company that has obtained a business license from the Financial Services Authority;
d. repurchase agreement and Sharia repurchase agreement transactions are registered at the Indonesia Central Securities Depository or Bank Indonesia Scriptless Securities Settlement System (BI-S4); e. the duration does not exceed 90 (ninety) days; and f. the value of repurchase agreements and Sharia repurchase agreements is at most 80% (eighty percent) of the market value of the pledged securities. (6) Investments in the form of real estate investment funds in the form of collective investment contracts as referred to in Article 46 paragraph (1) letter k and Sharia real estate investment funds in the form of collective investment contracts as referred to in Article 47 letter k must meet the following provisions:
a. have obtained an effective statement from the Financial Services Authority; and b. are conducted through a public offering as regulated in legislation in the capital market sector. (7) Investments in the form of infrastructure investment funds in the form of collective investment contracts as referred to in Article 46 paragraph (1) letter l must meet the following provisions:
a. for infrastructure investment funds in the form of collective investment contracts issued through a public offering, have obtained an effective statement from the Financial Services Authority; b. for infrastructure investment funds in the form of collective investment contracts issued not through a public offering, have been registered with the Financial Services Authority;
c. have an investment grade rating from a securities rating company that has obtained a business license from the Financial Services Authority; and
d. one of the investment portfolios of the infrastructure investment fund in the form of a collective investment contract consisting of infrastructure assets has generated income.
(8) Investments in the form of Sharia infrastructure investment funds in the form of collective investment contracts as referred to in Article 47 letter l must meet the following provisions:
a. their management does not contradict Sharia principles in the capital market; b. for Sharia infrastructure investment funds in the form of collective investment contracts issued through a public offering, have obtained an effective statement from the Financial Services Authority;
c. for Sharia infrastructure investment funds in the form of collective investment contracts issued not through a public offering, have been registered with the Financial Services Authority;
d. have an investment grade rating from a securities rating company that has obtained a business license from the Financial Services Authority; and e. one of the investment portfolios of the Sharia infrastructure investment fund in the form of a collective investment contract consisting of infrastructure assets has generated income. (9) Investments in the form of land and buildings as referred to in Article 46 paragraph (1) letter m and Article 47 letter m must meet the following provisions:
a. owned and controlled by the Guarantee Institution, proven by land and/or building ownership certificates in the name of the Guarantee Institution; b. generate rental income and other income through transactions based on prevailing market prices; and
c. are not placed in buildings or land with buildings that are currently pledged, in dispute, and/or blocked by other parties.
(10) Investments in the form of direct participation in companies in the financial services sector in Indonesia as referred to in Article 46 paragraph (1) letter n and direct participation in companies in the Sharia financial services sector in Indonesia as referred to in Article 47 letter n must meet the following provisions:
a. direct participation is conducted on shares issued by limited liability companies; and b. in the event the Guarantee Institution becomes the largest shareholder or holds at least 25% (twenty-five percent) of shares in a limited liability company, the Guarantee Institution has and uses its rights to:
1. place representatives in the membership of the Board of Commissioners of the limited liability company; and
2. obtain unlimited access to all material information related to the entire company.
(11) Investments in the form of pure gold as referred to in Article 46 paragraph (1) letter o and Article 47 letter o must meet the following provisions:
a. meet the specification requirements established by a commodity exchange that has obtained a license from the competent authority; and b. are stored in:
1. Custodian Banks;
2. other parties that have obtained a license or approval from the competent authority to provide custody services; or
3. the relevant Guarantee Institution provided that they are insured.

Article 49
In the event that corporate bonds and/or corporate sukuk issued by non-bank financial service institutions do not have an investment grade rating as referred to in Article 48 paragraph (1) letter b, it may be done with the following provisions:
a. the investment type has a rating 1 (one) level below investment grade; and b. the assessment of the health level of the non-bank financial service institution based on the latest assessment conducted by the Financial Services Authority is a composite rating 1 or composite rating 2 as referred to in the Financial Services Authority Regulation regarding the health level of non-bank financial service institutions.

Part Two
Investment Limits

Article 50
(1) Guarantee Companies and Reinsurance Companies that will place investments in types of investments consisting of land and buildings as referred to in Article 46 paragraph (1) letter m and Article 47 letter m must meet the following provisions:
a. have a national operational scope; and b. have adequate risk management.
(2) Guarantee Institutions that will place investments in types of investments consisting of medium term notes as referred to in Article 46 paragraph (1) letter i and Sharia medium term notes as referred to in Article 47 letter i, repurchase agreements as referred to in Article 46 paragraph (1) letter j and Sharia repurchase agreements as referred to in Article 47 letter j, real estate investment funds in the form of collective investment contracts as referred to in Article 46 paragraph (1) letter k, and Sharia real estate investment funds in the form of collective investment contracts as referred to in Article 47 letter k must meet the following provisions:
a. have a national operational scope; b. have total assets of at least IDR 1,000,000,000,000.00 (one trillion rupiah); and
c. have adequate risk management.

Article 51
(1) Investments in the form of deposits at banks as referred to in Article 46 paragraph (1) letter a and deposits at Sharia commercial banks, Sharia business units of commercial banks, and Sharia people's economic banks as referred to in Article 47 letter a must meet the following provisions:
a. at each commercial bank or Sharia commercial bank, the limit is prohibited from exceeding 30% (thirty percent) of the total investment amount; b. at each people's economic bank or Sharia people's economic bank, the limit is prohibited from exceeding 10% (ten percent) of the total investment amount; and
c. marginal deposits are prohibited from exceeding 5% (five percent) of the total investment amount.
(2) Investments in the form of corporate bonds as referred to in Article 46 paragraph (1) letter d and/or corporate sukuk as referred to in Article 47 letter d are prohibited from exceeding 10% (ten percent) for each issuer and in total are prohibited from exceeding 20% (twenty percent) of the total investment amount. (3) Investments in the form of regional bonds as referred to in Article 46 paragraph (1) letter e and/or regional sukuk as referred to in Article 47 letter e are prohibited from exceeding 10% (ten percent) for each issuer and in total are prohibited from exceeding 20% (twenty percent) of the total investment amount. (4) Investments in the form of shares listed on the Indonesia Stock Exchange as referred to in Article 46 paragraph (1) letter f and Article 47 letter f are prohibited from exceeding 5% (five percent) of the total investment amount for each issuer and in total are prohibited from exceeding 20% (twenty percent) of the total investment amount. (5) Investments in the form of asset-backed securities as referred to in Article 46 paragraph (1) letter g and Sharia asset-backed securities as referred to in Article 47 letter g are prohibited from exceeding 5% (five percent) of the total investment amount for each investment manager or issuer and in total are prohibited from exceeding 20% (twenty percent) of the total investment amount. (6) Investments in the form of mutual funds as referred to in Article 46 paragraph (1) letter h and Sharia mutual funds as referred to in Article 47 letter h are prohibited from exceeding 5% (five percent) of the total investment amount for each investment manager and in total are prohibited from exceeding 20% (twenty percent) of the total investment amount, except investments in mutual funds in the form of collective investment contracts with limited participation which are set at a maximum of 10% (ten percent) of the total investment amount. (7) Investments in the form of medium term notes as referred to in Article 46 paragraph (1) letter i and Sharia medium term notes as referred to in Article 47 letter i must meet the following provisions:
a. are prohibited from exceeding 10% (ten percent) of the total investment amount of the Guarantee Institution; and b. are prohibited from exceeding 10% (ten percent) of the total issuance amount of medium term notes. (8) Investments in the form of real estate investment funds in the form of collective investment contracts as referred to in Article 46 paragraph (1) letter k and Sharia real estate investment funds in the form of collective investment contracts as referred to in Article 47 letter k are prohibited from exceeding 5% (five percent) of the total investment amount for each investment manager and in total are prohibited from exceeding 20% (twenty percent) of the total investment amount. (9) Investments in the form of repurchase agreements as referred to in Article 46 paragraph (1) letter j and Sharia repurchase agreements as referred to in Article 47 letter j for each counterparty are prohibited from exceeding 2% (two percent) of the total investment amount, and in total are prohibited from exceeding 10% (ten percent) of the total investment amount. (10) Investments in the form of infrastructure investment funds in the form of collective investment contracts as referred to in Article 46 paragraph (1) letter l and Article 47 letter l are prohibited from exceeding 10% (ten percent) of the total investment amount for each investment manager and in total are prohibited from exceeding 20% (twenty percent) of the total investment amount. (11) Investments in the form of land and buildings as referred to in Article 46 paragraph (1) letter m and Article 47 letter m are prohibited from exceeding 5% (five percent) of the total investment amount. (12) Investments in the form of direct participation in companies in the financial services sector in Indonesia as referred to in Article 46 paragraph (1) letter n and direct participation in companies in the Sharia financial services sector in Indonesia as referred to in Article 47 letter n are prohibited from exceeding 10% (ten percent) of the total investment amount.

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(13) Investments in the form of pure gold as referred to in Article 46 paragraph (1) letter o and Article 47 letter o are prohibited from exceeding 10% (ten percent) of the total investment amount. (14) The investment limit provisions in the form of direct participation as referred to in paragraph (12) are exempted for Guarantee Institutions that receive assignments from the government, proven by evidence of assignment. (15) Guarantee Institutions that receive assignments from the government as referred to in paragraph (14) are prohibited from placing investments in the form of direct participation exceeding 15% (fifteen percent) of the total investment amount.

Article 52
(1) The total amount of placements by Guarantee Companies and Reinsurance Companies in investment instruments as referred to in Article 46 paragraph (1) letters f, h, i, j, k, l, and n is prohibited from exceeding 60% (sixty percent) of the total investment amount. (2) The total amount of placements by Sharia Guarantee Companies and Sharia Reinsurance Companies in investment instruments as referred to in Article 47 letters f, h, i, j, k, l, and n is prohibited from exceeding 60% (sixty percent) of the total investment amount.

Article 53
(1) The total amount of investments placed by Guarantee Institutions in affiliated parties, excluding direct participation, is prohibited from exceeding 10% (ten percent) of the total investment amount. (2) Affiliated parties as referred to in paragraph (1) are parties that have a relationship with one or more other parties where one party can influence the management or policies of the other party or vice versa. (3) Relationships that can influence management or policies as referred to in paragraph (2) are in the form of:
a. one party has one or more directors or officials at a level below directors, board of commissioners, or equivalent, who also serve as directors or officials at a level below directors, board of commissioners, or equivalent at the other party; b. one party has one or more directors, board of commissioners, controlling shareholders, or equivalent, who have family relationships due to marriage or descent up to the second degree, both horizontally and vertically, who serve as directors, board of commissioners, controlling shareholders, or equivalent at the other party;

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c. one party holds at least 25% (twenty-five percent) of the shares of the other party;
d. one party is the largest shareholder or equivalent in the other party; e. the parties are controlled by the same controller; or f. one party has voting rights in the other party of more than 50% (fifty percent) based on an agreement. (4) Investment placements in affiliated parties as referred to in paragraph (1) do not include relationships arising from ownership or capital participation by the central government or regional governments.

Article 54
Compliance with investment limits as referred to in Articles 51 to 53 is determined at the time the investment placement is made.

Part Three
Administrative Sanctions

Article 55
(1) Violations of the provisions as referred to in Article 46 paragraph (1), Article 47, Article 48, Article 50, Article 51 paragraph (1), paragraph (2), paragraph (3), paragraph (4), paragraph (5), paragraph (6), paragraph (7), paragraph (8), paragraph (9), paragraph (10), paragraph (11), paragraph (12), paragraph (13), paragraph (15), Article 52, and/or Article 53 paragraph (1) shall be subject to administrative sanctions in the form of:
a. written warnings; and/or b. suspension of business activities and/or suspension of Sharia Business Unit (UUS) activities.
(2) In addition to imposing administrative sanctions as referred to in paragraph (1), the Financial Services Authority (OJK) may:
a. restrict certain business activities; b. cancel approvals; and/or
c. re-evaluate the principal parties.
(3) Written warning sanctions as referred to in paragraph (1) letter a may be given for a maximum of 3 (three) consecutive times, with each validity period being a maximum of 2 (two) months. (4) In the event that before the expiration of the written warning sanction period as referred to in paragraph (3), the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the written warning sanction. (5) In the event that the validity period of the third written warning as referred to in paragraph (3) expires and the Guarantee Institution still fails to comply with the provisions regarding the cause of the violation, the Financial Services Authority shall impose sanctions of suspension of business activities and/or suspension of Sharia Business Unit (UUS) activities. (6) Sanctions of suspension of business activities and/or suspension of Sharia Business Unit (UUS) activities are given in writing and take effect from the date of establishment for a period of a maximum of 6 (six) months. (7) In the event that the validity period of written warning sanctions, suspension of business activities sanctions, and/or suspension of Sharia Business Unit (UUS) activities sanctions ends on a holiday, the written warning sanctions, suspension of business activities sanctions, and/or suspension of Sharia Business Unit (UUS) activities sanctions shall remain valid until the first working day following the holiday. (8) In the event that before the expiration of the suspension of business activities and/or suspension of Sharia Business Unit (UUS) activities sanction period as referred to in paragraph (6), the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the suspension of business activities sanction or suspension of Sharia Business Unit (UUS) activities sanction. (9) The Financial Services Authority announces the suspension of business activities and/or suspension of Sharia Business Unit (UUS) activities sanctions as referred to in paragraph (1) letter b to the public through the official information channels of the Financial Services Authority and/or Indonesian-language mass media in electronic and/or printed form distributed nationally.

CHAPTER XI
HEALTH LEVEL OF GUARANTEE INSTITUTIONS

Part One
General

Article 56
(1) Guarantee Institutions are required to maintain and/or improve their health level by applying prudent principles and risk management in conducting business activities.
(2) Guarantee Institutions are required to conduct health level assessments using a risk-based approach individually.
(3) Individual health level assessments as referred to in paragraph (2) for Guarantee Institutions are conducted with an assessment scope covering the following factors:
a. good corporate governance; b. risk profile;
c. profitability; and
d. capital adequacy.
(4) Guarantee Companies that have Sharia Business Units (UUS) are required to conduct health level assessments of the UUS using an individual approach.
(5) Health level assessments of Guarantee Institutions are conducted in accordance with Financial Services Authority Regulations regarding the assessment of health levels of non-bank financial service institutions.

Part Two
Liquidity and Profitability Ratios

Article 57
(1) Guarantee Institutions are required to maintain their liquidity level.
(2) Guarantee Institutions are required to maintain a minimum liquidity ratio of 120% (one hundred twenty percent).
(3) The liquidity ratio as referred to in paragraph (2) is calculated using the current ratio, which is the comparison between current assets and current liabilities.
(4) Profitability as referred to in Article 56 paragraph (3) letter c is the ability of the Guarantee Institution to generate profit.
(5) Assessments of the profitability factor as referred to in paragraph (4) include assessments of asset performance and operational efficiency.

Part Three
Administrative Sanctions

Article 58
(1) Violations of the provisions as referred to in Article 56 paragraph (1), paragraph (2), paragraph (4), Article 57 paragraph (1), and/or paragraph (2) shall be subject to administrative sanctions in the form of:
a. written warnings; b. suspension of business activities and/or suspension of Sharia Business Unit (UUS) activities; and/or
c. revocation of business licenses and/or revocation of Sharia Business Unit (UUS) licenses.
(2) In addition to imposing administrative sanctions as referred to in paragraph (1), the Financial Services Authority may:
a. restrict certain business activities; b. cancel approvals; and/or
c. re-evaluate the principal parties.
(3) Written warning sanctions as referred to in paragraph (1) letter a may be given for a maximum of 3 (three) consecutive times, with each validity period being a maximum of 2 (two) months. (4) In the event that before the expiration of the written warning sanction period as referred to in paragraph (3), the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the written warning sanction. (5) In the event that the validity period of the third written warning as referred to in paragraph (3) expires and the Guarantee Institution still fails to comply with the provisions regarding the cause of the violation, the Financial Services Authority shall impose sanctions of suspension of business activities and/or suspension of Sharia Business Unit (UUS) activities. (6) Sanctions of suspension of business activities and/or suspension of Sharia Business Unit (UUS) activities are given in writing and take effect from the date of establishment for a period of a maximum of 6 (six) months. (7) In the event that the validity period of written warning sanctions, suspension of business activities sanctions, and/or suspension of Sharia Business Unit (UUS) activities sanctions ends on a holiday, the written warning sanctions, suspension of business activities sanctions, and/or suspension of Sharia Business Unit (UUS) activities sanctions shall remain valid until the first working day following the holiday. (8) In the event that before the expiration of the suspension of business activities and/or suspension of Sharia Business Unit (UUS) activities sanction period as referred to in paragraph (6), the Guarantee Institution has resolved the cause of the violation, the Financial Services Authority shall revoke the suspension of business activities and/or suspension of Sharia Business Unit (UUS) activities sanctions. (9) In the event that the suspension of business activities sanction is still in effect and the Guarantee Institution continues to conduct Guarantee business activities, the Financial Services Authority may directly impose sanctions of revocation of business licenses and/or revocation of Sharia Business Unit (UUS) licenses. (10) In the event that by the expiration of the suspension of business activities period as referred to in paragraph (6), the Guarantee Institution still does not comply with the provisions regarding the cause of the violation, the Financial Services Authority shall revoke the business license and/or Sharia Business Unit (UUS) license of the respective Guarantee Institution. (11) The Financial Services Authority announces the suspension of business activities and/or suspension of Sharia Business Unit (UUS) activities sanctions as referred to in paragraph (1) letter b, and/or sanctions of revocation of business licenses and/or revocation of Sharia Business Unit (UUS) licenses as referred to in paragraph (1) letter c to the public through the official information channels of the
Financial Services Authority and/or Indonesian-language mass media in electronic and/or printed form distributed nationally.

CHAPTER XII
SUPPORTING INSTITUTIONS FOR GUARANTEES

Part One
Micro, Small, Medium, and Cooperative Rating Agencies

Article 59
(1) Guarantee Institutions may use the services of micro, small, medium, and cooperative rating agencies in conducting their business.
(2) Micro, small, medium, and cooperative rating agencies used must be registered with the Financial Services Authority.
(3) Micro, small, medium, and cooperative rating agencies as referred to in paragraph (1) are required to conduct rating activities independently, objectively, and accountably in providing ratings.

Article 60
(1) Business activities conducted by micro, small, medium, and cooperative rating agencies consist of:
a. collecting data on micro, small, medium, and cooperative businesses and other data; and b. processing data on micro, small, medium, and cooperative businesses and other data to generate rating information. (2) Data on micro, small, medium, and cooperative businesses and other data collected and processed by micro, small, medium, and cooperative rating agencies as referred to in paragraph (1) may only be used to generate rating information. (3) Rating information generated by micro, small, medium, and cooperative rating agencies as referred to in paragraph (1) letter b, whether individual or aggregate, must contain at least:
a. the feasibility of micro, small, medium, and cooperative businesses to obtain funding; b. the reputation track record of micro, small, medium, and cooperative businesses in fulfilling funding obligations;
c. ratings to assess the ability of micro, small, medium, and cooperative businesses to fulfill funding obligations;
d. the character of micro, small, medium, and cooperative businesses; and e. other information that can be used to assess the ability of micro, small, medium, and cooperative businesses.

Article 61
(1) Micro, small, medium, and cooperative rating agencies are required to:
a. maintain data accuracy, timeliness, security, and confidentiality; b. have reliable systems;
c. have operational policies and procedures documented in written guidelines; and
d. have rules that must be complied with by every party using rating information.
(2) Operational policies and procedures for rating activities as referred to in paragraph (1) must include at least:
a. data security activity steps; b. access levels;
c. data change procedures;
d. information security; e. business continuity plans; f. end-user computing; g. disaster recovery plans; h. monitoring of operations including audit trails;
i. procedures for providing rating information; and
j. procedures for handling and resolving complaints.

Article 62
(1) Micro, small, medium, and cooperative rating agencies registered with the Financial Services Authority may collect and process data on micro, small, medium, and cooperative businesses, as well as other data. (2) To broaden and enrich the scope of data on micro, small, medium, and cooperative businesses, as well as other data as referred to in paragraph (1), micro, small, medium, and cooperative rating agencies may cooperate with:
a. ministries and/or other state institutions; b. financial service institutions; and/or
c. other business entities.
(3) Micro, small, medium, and cooperative rating agencies may obtain data as referred to in paragraph (1) directly based on agreements and applicable legislation.

Article 63
(1) The management of data on micro, small, medium, and cooperative businesses, as well as other data, by micro, small, medium, and cooperative rating agencies covers data collection, processing, and distribution activities. (2) For data management as referred to in paragraph (1), micro, small, medium, and cooperative rating agencies must adhere to regulations regarding information system and electronic transaction providers.

Article 64
(1) For data management as referred to in Article 63 paragraph (1), micro, small, medium, and cooperative rating agencies are required to implement security measures to maintain data accuracy, timeliness, security, and confidentiality. (2) To maintain data accuracy, timeliness, security, and confidentiality as referred to in paragraph (1), micro, small, medium, and cooperative rating agencies are required to place servers and databases within the territory of the Republic of Indonesia. (3) Micro, small, medium, and cooperative rating agencies are required to have a disaster recovery center located at a site separate from the head office.

Article 65
(1) Parties entitled to obtain rating information are:
a. financial service institutions that are members of the micro, small, medium, and cooperative rating agency; b. ministries and/or other state institutions as referred to in Article 62 paragraph (2) letter a that are data sources for the respective micro, small, medium, and cooperative rating agency;
c. other micro, small, medium, and cooperative rating agencies;
d. micro, small, medium, and cooperative businesses regarding their own rating information; and/or e. other parties.
(2) Micro, small, medium, and cooperative rating agencies are required to administer all requests for rating information from parties as referred to in paragraph (1).
(3) Micro, small, medium, and cooperative rating agencies may charge fees for providing rating information to parties as referred to in paragraph (1).

Article 66
(1) In carrying out its duties, the Financial Services Authority may request data managed by micro, small, medium, and cooperative rating agencies directly.
(2) Regarding data requests as referred to in paragraph (1), micro, small, medium, and cooperative rating agencies are required to provide access to the Financial Services Authority in the form of:
a. explanations and data requested; b. opportunities to view all books, documents, and/or physical facilities related to their business activities; and/or
c. other necessary matters.

Part Two
Guarantee Agents

Article 67
(1) In conducting their business activities, Guarantee Institutions may use the services of guarantee agents.
(2) Guarantee agents as referred to in paragraph (1) are individuals or business entities that conduct marketing of guarantee business activities on behalf of and for the Guarantee Institution. (3) Guarantee agents as referred to in paragraph (2) are prohibited from embezzling IJP, IJK, IJPU, and/or IJKU. (4) Guarantee Institutions are required to have an agency agreement with guarantee agents who conduct marketing on behalf of and for the Guarantee Institution. (5) Actions of guarantee agents related to guarantee transactions become the responsibility of the Guarantee Institution. (6) Guarantee agents as referred to in paragraph (2) are prohibited from issuing temporary Guarantee or Sharia Guarantee documents and/or Guarantee Certificates or Kafalah Certificates. (7) Guarantee agents as referred to in paragraph (2) are prohibited from acting for more than 1 (one) similar Guarantee Institution.

Part Three
Brokers

Article 68
(1) Brokers are parties that provide consulting and/or intermediary services in providing guarantees and handling claim settlements, acting on behalf of and for the Insured.
(2) Brokers are required to provide clear, accurate, correct, and non-misleading information to Guarantee Institutions regarding the guaranteed objects.
(3) Brokers are required to provide clear, accurate, correct, and non-misleading information to the Insured regarding the contents of Guarantee Certificates or Kafalah Certificates, including the rights and obligations of the Insured. (4) Brokers are prohibited from issuing temporary Guarantee or Sharia Guarantee documents and/or Guarantee Certificates or Kafalah Certificates.

Article 69
(1) Guarantee Brokers or Sharia Guarantee Brokers may receive payments of IJP or IJK from the Insured.
(2) Reinsurance Brokers or Sharia Reinsurance Brokers may receive payments of IJPU or IJKU from Guarantee Companies or Sharia Guarantee Companies.
(3) Guarantee Brokers or Sharia Guarantee Brokers as referred to in paragraph (1) and Reinsurance Brokers or Sharia Reinsurance Brokers as referred to in paragraph (2) are required to forward payments of IJP, IJPU, IJK, and/or IJKU to the Guarantee Institution within a maximum of 7 (seven) days from the receipt of IJP, IJPU, IJK, and/or IJKU payments. (4) Guarantee Companies or Sharia Guarantee Companies issue Guarantee Certificates or Kafalah Certificates after receiving payments of IJP or IJK as referred to in paragraph (1) from Guarantee Brokers or Sharia Guarantee Brokers.

Part Four
Administrative Sanctions

Article 70
(1) Violations of the provisions as referred to in Article 59 paragraph (2), paragraph (3), Article 61 paragraph (1), Article 63 paragraph (2), Article 64, Article 65 paragraph (2), Article 66 paragraph (2), Article 67 paragraph (3), paragraph (4), paragraph (6), paragraph (7), Article 68 paragraph (2), paragraph (3), paragraph (4), and/or Article 69 paragraph (3) shall be subject to administrative sanctions in the form of:
a. written warnings; b. suspension of business activities; and/or
c. cancellation of registration statements.
(2) In addition to imposing administrative sanctions as referred to in paragraph (1), the Financial Services Authority may:
a. restrict certain business activities; b. cancel approvals; and/or
c. re-evaluate the principal parties.
(3) Written warning sanctions as referred to in paragraph (1) letter a may be given for a maximum of 3 (three) consecutive times, with each validity period being a maximum of 2 (two) months. (4) In the event that before the expiration of the written warning sanction period as referred to in paragraph (3), the supporting institution for guarantees has resolved the cause of the violation, the Financial Services Authority shall revoke the written warning sanction. (5) In the event that the validity period of the third written warning as referred to in paragraph (3) expires and the supporting institution for guarantees still fails to comply with the provisions regarding the cause of the violation, the Financial Services Authority shall impose sanctions of suspension of business activities. (6) Sanctions of suspension of business activities are given in writing and take effect from the date of establishment for a period of a maximum of 6 (six) months. (7) In the event that the validity period of written warning sanctions and/or suspension of business activities sanctions ends on a holiday, the written warning sanctions and/or suspension of business activities sanctions shall remain valid until the first working day following the holiday. (8) In the event that before the expiration of the suspension of business activities sanction period as referred to in paragraph (6), the supporting institution for guarantees has resolved the cause of the violation, the Financial Services Authority shall revoke the suspension of business activities sanction. (9) In the event that the suspension of business activities sanction is still in effect and the supporting institution for guarantees continues to conduct Guarantee business activities, the Financial Services Authority may directly impose sanctions of cancellation of registration statements. (10) In the event that by the expiration of the suspension of business activities period as referred to in paragraph (6), the supporting institution for guarantees still does not comply with the provisions regarding the cause of the violation, the Financial Services Authority shall cancel the registration statement of the respective supporting institution for guarantees. (11) The Financial Services Authority announces the suspension of business activities sanctions as referred to in paragraph (1) letter b and/or sanctions of cancellation of registration statements as referred to in paragraph (1) letter c to the public through the official information channels of the Financial Services Authority and/or Indonesian-language mass media in electronic and/or printed form distributed nationally.

CHAPTER XIII
REPORTING

Part One
General

Article 71
(1) Guarantee Institutions are required to submit monthly reports that are complete, accurate, and timely to the Financial Services Authority.
(2) Monthly reports as referred to in paragraph (1) are submitted through the Financial Services Authority reporting system.
(3) Monthly reports as referred to in paragraph (1) must be submitted no later than the 10th of the following month.
(4) If the deadline for submitting monthly reports as referred to in paragraph (3) falls on a holiday, the submission deadline is on the first working day following the holiday.
(5) If the deadline for submitting monthly reports as referred to in paragraph (3) falls on a national holiday or shared holiday, the Financial Services Authority may set the submission deadline date. (6) Provisions regarding the form, structure, and submission of monthly reports are determined by the Financial Services Authority.

Article 72
(1) Guarantee Institutions are required to submit annual financial reports audited by public accountants completely to the Financial Services Authority no later than April 30 of the following year. (2) Annual financial reports as referred to in paragraph (1) are submitted through the Financial Services Authority reporting system. (3) If the deadline for submitting annual financial reports as referred to in paragraph (1) falls on a holiday, the submission deadline is on the first working day following the holiday. (4) If the deadline for submitting annual financial reports as referred to in paragraph (1) falls on a national holiday or shared holiday, the Financial Services Authority may set the submission deadline date.

Article 73
In addition to monthly reports as referred to in Article 71 and annual financial reports as referred to in Article 72, Guarantee Institutions are required to submit incidental reports if required by the Financial Services Authority.

Article 74
(1) Guarantee Institutions are required to announce balance sheets and profit and loss statements no later than 4 (four) months after the end of the fiscal year, at least in 1 (one) daily newspaper in Indonesia with wide circulation in the operational area of the Guarantee Institution. (2) Guarantee Institutions are required to report the implementation of the announcement as referred to in paragraph (1) in writing to the Financial Services Authority no later than 30 (thirty) days after the announcement implementation, attached with proof of announcement. (3) If the deadline for submitting reports as referred to in paragraph (2) falls on a holiday, the submission deadline is on the first working day following the holiday. (4) If the deadline for submitting reports as referred to in paragraph (2) falls on a national holiday or shared holiday, the Financial Services Authority may set the submission deadline date.

Part Two
Administrative Sanctions

Article 75
(1) Violations of the provisions as referred to in Article 71 paragraph (1), paragraph (3), Article 72 paragraph (1), Article 73, Article 74 paragraph (1), and/or paragraph (2) shall be subject to administrative sanctions in the form of written warnings. (2) Guarantee Institutions declared late in submitting monthly reports as referred to in Article 71 paragraph (3) and annual financial reports as referred to in Article 72 paragraph (1) shall be subject to additional administrative sanctions in the form of an administrative fine of Rp500,000.00 (five hundred thousand rupiah) for each day of delay.

(3) Guarantee Institutions that fail to submit the monthly report as referred to in Article 71 paragraph (3) and the annual financial report as referred to in Article 72 paragraph (1) shall be deemed to have failed to submit the report if 30 (thirty) days have elapsed since the expiration of the submission deadline.

(4) Guarantee Institutions declared to have failed to submit the report as referred to in paragraph (3) shall be subject to additional administrative sanctions in the form of an administrative fine of Rp30,000,000.00 (thirty million rupiah).

(5) In addition to imposing administrative sanctions as referred to in paragraph (1), paragraph (2), and/or paragraph (4), the Financial Services Authority may conduct a re-evaluation of the principal party.

CHAPTER XIV
CONSUMER PROTECTION

Article 76
(1) Guarantee Institutions shall implement consumer and community protection in accordance with provisions of legislation regarding consumer and community protection in the financial services sector.

(2) The mechanism and procedures for implementing the principles of consumer and community protection as referred to in paragraph (1) shall be carried out in accordance with Financial Services Authority Regulations regarding consumer and community protection in the financial services sector.

CHAPTER XV
ACCOUNTING GUIDELINES FOR GUARANTEE INSTITUTIONS

Article 77
Guarantee Institutions shall record their business activities based on applicable financial accounting standards in Indonesia that are relevant to Guarantee Institutions.

CHAPTER XVI
OTHER PROVISIONS

Article 78
The Financial Services Authority may, based on specific considerations, grant approval or policies that differ from this Financial Services Authority Regulation.

Article 79
The provisions in this Financial Services Authority Regulation shall not apply to Guarantees and/or Sharia Guarantees in support of government programs in accordance with provisions of legislation.

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

CHAPTER XVII
TRANSITIONAL PROVISIONS

Article 80
(1) Guarantee Certificates or Kafalah Certificates issued before this Financial Services Authority Regulation takes effect shall remain valid until the expiration of the guarantee period.

(2) Extensions of Guarantee Certificates or Kafalah Certificates as referred to in paragraph (1) carried out after this Financial Services Authority Regulation takes effect must comply with this Financial Services Authority Regulation.

Article 81
Guarantee Institutions subject to administrative sanctions based on Financial Services Authority Regulation Number 2/POJK.05/2017 concerning the Conduct of Guarantee Institution Business and unable to overcome the causes of the administrative sanctions shall be subject to further administrative sanctions in accordance with this Financial Services Authority Regulation.

CHAPTER XVIII
CLOSING PROVISIONS

Article 82
Upon the taking effect of this Financial Services Authority Regulation, the following provisions:
a. Financial Services Authority Regulation Number 2/POJK.05/2017 concerning the Conduct of Guarantee Institution Business (State Gazette of the Republic of Indonesia Year 2017 Number 7, Supplement to the State Gazette of the Republic of Indonesia Number 6014); and b. Financial Services Authority Regulation Number 30/POJK.05/2018 concerning Amendments to Financial Services Authority Regulation Number 2/POJK.05/2017 concerning the Conduct of Guarantee Institution Business (State Gazette of the Republic of Indonesia Year 2018 Number 246, Supplement to the State Gazette of the Republic of Indonesia Number 6277), are repealed and declared invalid.

Article 83
This Financial Services Authority Regulation shall take effect 6 (six) months from the date of its promulgation.

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

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

In order that everyone may know it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on 28 April 2025
CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

Promulgated in Jakarta on 6 May 2025
MINISTER OF LAW OF THE REPUBLIC OF INDONESIA, signed SUPRATMAN ANDI AGTAS

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2025 NUMBER 19/OJK https://jdih.ojk.go.id/

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 11 OF 2025
CONCERNING
THE CONDUCT OF GUARANTEE INSTITUTION BUSINESS

I. GENERAL

The Financial Services Authority Regulation concerning the Conduct of Guarantee Institution Business is an implementing regulation that is a mandate from Law Number 1 of 2016 concerning Guarantees as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.

The role of Guarantee Companies, Sharia Guarantee Companies, Re-guarantee Companies, and Sharia Re-guarantee Companies in the development of the guarantee industry is very significant. Companies and industry players play an important role in creating a healthier, reliable, trustworthy, and sustainable guarantee industry. The culmination of all these efforts is the growth and even distribution of the national economy, which will ultimately create common prosperity as an effort to realize the nation's ideals.

This Financial Services Authority Regulation is also an improvement to Financial Services Authority Regulation Number 2/POJK.05/2017 concerning the Conduct of Guarantee Institution Business and Financial Services Authority Regulation Number 30/POJK.05/2018 concerning Amendments to Financial Services Authority Regulation Number 2/POJK.05/2017 concerning the Conduct of Guarantee Institution Business.

As an improvement effort, this Financial Services Authority Regulation adopts the mandate from Law Number 1 of 2016 concerning Guarantees which must be regulated in a Financial Services Authority Regulation. In addition to this material, improvements are also made to the materials in the previously applicable regulations, including supporting the increase in guarantee capacity, strengthening the prudential side, and maintaining the sustainability of the guarantee industry business. These efforts are aimed at meeting the legal needs of the guarantee industry.

II. ARTICLE BY ARTICLE

Article 1
Clear enough.

Article 2
Paragraph (1)
Letter a
What is meant by "guarantee of Credit, Financing, or Financing Based on Sharia Principles" is the guarantee of Credit, Financing, or Financing Based on Sharia Principles for individual businesses or business entities.

Letter b
Loans distributed by savings and loan cooperatives or cooperatives that have savings and loan business units to their members for Sharia Guarantee Companies are loans or financing conducted based on Sharia Principles.

Letter c
Credit and/or partnership program loans distributed by state-owned enterprises in the context of partnership and environmental nurturing programs for Sharia Guarantee Companies are loans or financing conducted based on Sharia Principles.

Paragraph (2)
Letter a
What is meant by "guarantee of debt instruments" is the guarantee of the inability of micro, small, and medium enterprises to fulfill financial obligations on issued debt instruments (default).

Letter b
What is meant by "guarantee of installment purchase of goods" is the guarantee of the purchase of goods or commodities to be used for productive business activities, such as the purchase of fertilizer or cement. The installment purchase of goods referred to in this paragraph is not intended for financial service institutions.

Letter c
What is meant by "guarantee of trade transactions" is the provision of guarantees to protect payments made by business actors in goods trade transactions. Guarantee of trade transactions does not include guarantees for the settlement of transactions in the futures trading field or commodity futures markets and commodity auction markets.

Letter d
What is meant by "guarantee of procurement of goods and/or services (surety bond)" is a 3 (three) party agreement between the Guarantor and the Guaranteed to guarantee the interests of the Guarantee Recipient, if the Guaranteed fails to fulfill their obligations as agreed with the Guarantee Recipient, the Guarantor will be responsible to the Guarantee Recipient to fulfill the Guaranteed's obligations.

Letter e
What is meant by "guarantee of bank guarantees (contra bank guarantees)" is the guarantee required to obtain bank guarantees.

Letter f
What is meant by "guarantee of domestic documentary credits" is the Guarantee required to obtain domestic documentary credits.
What is meant by "domestic documentary credit" is every written promise by the applicant binding the opening bank to:

make payments to the payee or their order or accept or pay bills received;
authorize other banks to make payments to the payee or their order or accept and pay bills drawn by the payee; or
authorize other banks to negotiate bills drawn by the payee, upon presentation of documents as long as the requirements and conditions of the domestic documentary credit are met,
as regulated in legislation concerning domestic documentary credits.

Letter g
What is meant by "guarantee of letter of credit" is the guarantee required to obtain a letter of credit.
What is meant by "letter of credit" is a payment promise from the issuing bank to the payee if the payee presents documents to the issuing bank that comply with the letter of credit requirements, as regulated in legislation concerning the business activities of commercial banks based on core capital.

Letter h
What is meant by "customs guarantee (customs bond)" is a guarantee of payment of state levies in the context of customs activities and/or fulfillment of obligations required in customs regulations submitted to the customs office as referred to in the Minister of Finance Regulation concerning guarantees in the context of customs.

Letter i
What is meant by "excise guarantee" is a 3 (three) party agreement between the Guarantor and the Guaranteed to guarantee the interests of the Guarantee Recipient, which provides a guarantee of payment of excise obligations to the Guarantee Recipient if the Guaranteed fails to fulfill excise payment obligations in accordance with applicable legislation.

Letter j
Clear enough.

Letter k
Clear enough.

Paragraph (3)
Business activities based on Sharia Principles are business activities that do not contain elements, including:

a. riba, namely the addition of income illegally (batil), including in transactions of exchange of similar goods that do not have the same quality, quantity, and time of delivery (fadhl), or in lending transactions that require the recipient of the facility to return funds received exceeding the principal loan due to the passage of time (nasi'ah); b. maisir, namely transactions dependent on uncertain and speculative conditions;
c. gharar, namely transactions where the object is unclear, not owned, existence unknown, or cannot be delivered at the time of the transaction unless otherwise regulated in Sharia;
d. haram, namely transactions where the object is prohibited in Sharia; or e. zalim, namely transactions that cause injustice to other parties.

Paragraph (4)
Clear enough.

Paragraph (5)
What is meant by "government program" is a program owned by the government using specific guarantee mechanisms.

Paragraph (6)
Examples of risk guarantees other than the failure to fulfill financial obligations of the Guaranteed party:
Guarantee against the risk of the Guaranteed party dying during the Credit, Financing, or Financing Based on Sharia Principles period.

Article 3
Paragraph (1)
What is meant by "will conduct business activities" is that the Guarantee Company or Sharia Guarantee Company will conduct business activities listed in its articles of association, which have not been conducted previously by the Guarantee Company or Sharia Guarantee Company, and for which the completeness of documents related to the business activity has not been submitted during the business license application process.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Paragraph (8)
Clear enough.

Paragraph (9)
Clear enough.

Paragraph (10)
Clear enough.

Article 4
Paragraph (1)
What is meant by "business activities assessed as endangering the sustainability of the Guarantee Company and Sharia Guarantee Company" are deteriorating business activities, among others marked by declining profitability that impacts losses for the Guarantee Company or Sharia Guarantee Company, thereby reducing Equity below the required provisions.

Paragraph (2)
Clear enough.

Article 5
Paragraph (1)
Other business activities, including fee-based business activities.
What is meant by "fee-based business activities" are business activities to market financial service products, including mutual funds or other products related to financial service activities.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
The feasibility analysis of business prospects conducted by the Financial Services Authority considers, among others, the suitability between the guarantee capacity of the Guarantee Company or Sharia Guarantee Company against the portfolio of business activities to be conducted, including aspects of risk management fulfillment.

Paragraph (8)
Clear enough.

Paragraph (9)
Clear enough.

Paragraph (10)
Clear enough.

Paragraph (11)
Clear enough.

Paragraph (12)
Clear enough.

Paragraph (13)
Example:
PT Penjaminan Kredit UMKM will conduct mutual fund marketing activities. PT Penjaminan Kredit UMKM can submit an application for approval of other business activities simultaneously with the application process for registration as a mutual fund sales agent.

Article 6
Clear enough.

Article 7
Clear enough.

Article 8
Clear enough.

Article 9
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Supporting documents for Guarantee Certificates or Kafalah Certificates include:
a. identity of the Guaranteed; b. Credit ceiling or contract value; and
c. Credit agreement number or contract number.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Example of setting the guarantee period for a 12 (twelve) year Credit guarantee:
a. Guarantee for the first 5 (five) years; b. Guarantee for the second 5 (five) years; and
c. Guarantee for the last 2 (two) years.

Article 10
Clear enough.

Article 11
Clear enough.

Article 12
Paragraph (1)
Letter a
Direct guarantee is a guarantee provided to the Guaranteed without first going through the Guarantee Recipient.

Letter b
Indirect guarantee is a guarantee provided to the Guaranteed by the Guarantor first through or at the request of the Guarantee Recipient.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
What is meant by "conditional automatic guarantee" is the approval of a guarantee conducted by the Guarantee Company and Sharia Guarantee Company automatically without prior guarantee feasibility analysis, but feasibility analysis is conducted at the time of Claim submission. Conditional automatic cover is known as conditional automatic cover.

Article 13
Clear enough.

Article 14
Clear enough.

Article 15
Clear enough.

Article 16
Paragraph (1)
Clear enough.

Paragraph (2)
Example of joint guarantee activities:
PT Penjaminan Kredit UMKM conducts joint guarantee activities with PT Penjaminan Kredit Daerah Bekasi to guarantee a multi-purpose credit distributed by PT Bank Maju Sejahtera. PT Penjaminan Kredit UMKM becomes the chairman with a guarantee proportion of 60% (sixty percent) and PT Penjaminan Kredit Daerah Bekasi becomes a member with a guarantee proportion of 40% (forty percent). PT Penjaminan Kredit UMKM and PT Penjaminan Kredit Daerah Bekasi jointly sign a joint guarantee cooperation agreement with PT Bank Maju Sejahtera.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Paragraph (8)
Clear enough.

Paragraph (9)
Clear enough.

Paragraph (10)
Clear enough.

Article 17
Paragraph (1)
Clear enough.

Paragraph (2)
Example of marketing cooperation activities according to the scope of business activities:
PT Penjaminan Kredit UMKM conducts marketing cooperation with PT Asuransi Jiwa Selamanya. PT Penjaminan Kredit UMKM will bear financial obligations for payment failures by debtors, while PT Asuransi Jiwa Selamanya will bear the risk of death of debtors. PT Penjaminan Kredit UMKM and PT Asuransi Jiwa Selamanya sign a joint marketing cooperation agreement with PT Bank Maju Sejahtera.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Article 18
Letter a
What is meant by "adl" is placing things only in their proper place, giving things only to those entitled, and treating according to their position.
What is meant by "amanah" is delivering any right to its owner and not taking anything exceeding one's rights nor reducing others' rights, whether in price or services.
What is meant by "tawazun" includes balance in material and spiritual aspects, private and public aspects, financial and real sectors, business and social aspects, and balance in utilization and sustainability aspects. What is meant by "maslahah" is all forms of goodness with worldly and hereafter dimensions, material and spiritual, individual and collective, and must fulfill 3 (three) elements namely Sharia compliance (halal), beneficial and bringing goodness (thoyib) in all overall aspects without causing harm. What is meant by "syumul" is that it can be done by, with, and for all interested parties (stakeholders) without distinction of ethnicity, religion, race, and sect, in accordance with the spirit of universal mercy (rahmatan lil alamin).

Letter b
What is meant by "riba" is the addition of income illegally (batil), including in transactions of exchange of similar goods that do not have the same quality, quantity, and time of delivery (fadhl), or in lending transactions that require the recipient of the facility to return funds received exceeding the principal loan due to the passage of time (nasi'ah). What is meant by "maisir" is transactions dependent on uncertain and speculative conditions. What is meant by "gharar" is transactions where the object is unclear, not owned, existence unknown, or cannot be delivered at the time of the transaction unless otherwise regulated in Sharia. What is meant by "zalim" is transactions that cause injustice to other parties. What is meant by "risywah" is bribery in the form of money, facilities, or other forms that violate the law as an effort to obtain facilities or ease in a transaction. What is meant by "maksiat" is human actions that violate moral laws contrary to Sharia Principles. What is meant by "haram object" is a good or service prohibited in Sharia.

Article 19
Clear enough.

Article 20
Legislative provisions include, among others, Financial Services Authority Regulations concerning the separation of Sharia Business Units of Guarantee Companies.

Article 21
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Example:
Guarantee value of Rp1,000,000,000.00 (one billion rupiah) accompanied by collateral of 25% (twenty-five percent) of the guarantee value in cash amounting to Rp250,000,000.00 (two hundred fifty million rupiah) or fixed assets with an equivalent value of Rp250,000,000.00 (two hundred fifty million rupiah).

Paragraph (7)
Clear enough.

Article 22
Clear enough.

Article 23
Clear enough.

Article 24
Clear enough.

Article 25
Paragraph (1)
Letter a
Number 1
The Claim Ratio is measured based on the ratio between the amount of Claims and the total insured value over a period of at least 3 (three) years.
Number 2
Clear enough.
Number 3
Clear enough.
Number 4
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Paragraph (2)
See explanation of Article 2 paragraph (5).

Paragraph (3)
Clear enough.

Article 26
Clear enough.

Article 27
Paragraph (1)
What is meant by "acquisition costs" are costs paid by the Guarantee Institution to third parties in the context of business acquisition.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Article 28
Clear enough.

Article 29
Clear enough.

Article 30
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Clear enough.

Letter b
Claims that have occurred but are not yet reported are known as incurred but not reported.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Article 31
Paragraph (1)
Example:
PT Penjaminan Kredit UMKM which records net profit in 2025 amounting to Rp10,000,000,000.00 (ten billion rupiah) sets aside for general reserves at least worth:
25% x Rp10,000,000,000.00 = Rp2,500,000,000.00 (two billion five hundred million rupiah).

Paragraph (2)
Example:
Paid-up capital of PT Penjaminan Kredit UMKM is Rp300,000,000,000.00 (three hundred billion rupiah) and the value of general reserves formed has reached Rp150,000,000,000.00 (one hundred fifty billion rupiah). PT Penjaminan Kredit UMKM in 2025 records net profit of Rp10,000,000,000.00 (ten billion rupiah). Then PT Penjaminan Kredit UMKM may set aside general reserves less than Rp2,500,000,000.00 (two billion five hundred million rupiah) or 25% (twenty-five percent) of net profit as long as it has been approved by the General Meeting of Shareholders or equivalent.

Paragraph (3)
Clear enough.

Paragraph (4)
Example:
PT Penjaminan A has a subsidiary entity PT Penjaminan B. Therefore, the formation of general reserves by PT Penjaminan A is calculated based on non-consolidated financial reports, and PT Penjaminan B forms general reserves for its own entity.

Article 32
Paragraph (1)
What is meant by "failure to fulfill obligations" is the failure of the Guaranteed to fulfill their obligations to the Guarantee Recipient, including:
a. the Guaranteed party in credit guarantees is declared to have doubtful or bad collectibility in accordance with provisions of legislation in the banking, financing business, microfinance institutions, or other funding providers sectors; b. the Guaranteed party other than credit guarantees is declared in breach of contract in accordance with a statement letter from the Guarantee Recipient in accordance with provisions of legislation. What is meant by "financial obligations" is the remaining debit balance of the Guaranteed declared as doubtful or bad

without additional interest, penalties, and/or other costs charged to the Insured.

Paragraph (2)
Clearly stated.

Article 33

Paragraph (1)
Clearly stated.

Paragraph (2)
What is meant by "agreement" is that the Guarantee Institution agrees on the amount of the Claim to be paid.
What is meant by "in full" is as stated in the Guarantee Certificate, Kafalah Certificate, or cooperation agreement.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Article 34
Clearly stated.

Article 35
Clearly stated.

Article 36

Paragraph (1)
What is meant by "self-retention" is the portion of the guarantee amount for each risk that becomes the own liability of the Guarantee Company or Shariah Guarantee Company.

Paragraph (2)
The risk and loss profile created by the Guarantee Company or Shariah Guarantee Company in an orderly, regular, relevant, and accurate manner is, among others, established in the form of operational standard procedures of the Guarantee Company or Shariah Guarantee Company.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Example:
PT UMKM Credit Guarantee which has Equity valued at IDR 200,000,000,000.00 (two hundred billion rupiah) can only bear its own Guarantee risk at most: 10% x IDR 200,000,000,000.00 = IDR 20,000,000,000.00 (twenty billion rupiah). For UUS, the maximum self-retention is calculated based on the Equity of the said UUS and is separate from the Equity of the Guarantee Company.

Paragraph (6)
Clearly stated.

Article 37
Clearly stated.

Article 38
Clearly stated.

Article 39

Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
What is meant by "total Gearing Ratio" is the ratio between the total value of Guarantees or total value of Reinsurance borne by itself and the Equity of the Guarantee Institution at a certain time.

Article 40
Clearly stated.

Article 41
Clearly stated.

Article 42

Paragraph (1)
Letter a
What is meant by "providing loans" is the form of loan provision activity that results in the Guarantee Institution having a business line as a lender (creditor) with the orientation to obtain profit from the said activity. Providing loans to employees to improve employee welfare (employee benefit) is not included in the loan provision activity in this paragraph.

Letter b
What is meant by "receiving loans" is the form of receiving loans in cash that results in the Guarantee Institution having a loan debt obligation in the financial position report.

Paragraph (2)
Clearly stated.

Paragraph (3)
Mandatory convertible bonds are known as mandatory convertible bonds.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Paragraph (7)
Clearly stated.

Paragraph (8)
Clearly stated.

Paragraph (9)
Clearly stated.

Paragraph (10)
Clearly stated.

Paragraph (11)
Clearly stated.

Paragraph (12)
Clearly stated.

Article 43

Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Letter a
On January 1, 2027, the following provisions regarding Minimum Equity shall apply:

for Guarantee Companies or Shariah Guarantee Companies at the district/city level, have Equity of at least IDR 37,500,000,000.00 (thirty-seven billion five hundred million rupiah);
for Guarantee Companies or Shariah Guarantee Companies at the provincial level, have Equity of at least IDR 75,000,000,000.00 (seventy-five billion rupiah);
for Guarantee Companies or Shariah Guarantee Companies at the national level, have Equity of at least IDR 175,000,000,000.00 (one hundred seventy-five billion rupiah); and
for Reinsurance Companies or Shariah Reinsurance Companies, have Equity of at least IDR 350,000,000,000.00 (three hundred fifty billion rupiah).

Letter b
On January 1, 2029, the following provisions regarding Minimum Equity shall apply:

for Guarantee Companies or Shariah Guarantee Companies at the district/city level, have Equity of at least IDR 50,000,000,000.00 (fifty billion rupiah);
for Guarantee Companies or Shariah Guarantee Companies at the provincial level, have Equity of at least IDR 100,000,000,000.00 (one hundred billion rupiah);
for Guarantee Companies or Shariah Guarantee Companies at the national level, have Equity of at least IDR 250,000,000,000.00 (two hundred fifty billion rupiah); and
for Reinsurance Companies or Shariah Reinsurance Companies, have Equity of at least IDR 500,000,000,000.00 (five hundred billion rupiah).

Paragraph (6)
Clearly stated.

Paragraph (7)
Clearly stated.

Paragraph (8)
Clearly stated.

Article 44
Clearly stated.

Article 45
Clearly stated.

Article 46

Paragraph (1)
Letter a
Deposits at banks include deposit certificates, time deposits, and on-call deposits.

Letter b
What is meant by "government securities" are securities issued by the Government of the Republic of Indonesia, including state debt securities as referred to in the Law regarding state debt securities and Shariah government securities as referred to in the Law regarding Shariah government securities.

Letter c
Clearly stated.

Letter d
Clearly stated.

Letter e
What is meant by "regional bonds" are regional loans offered to the public through a public offering in the capital market.

Letter f
Clearly stated.

Letter g
Asset-backed securities include, among others, asset-backed securities in the form of participation certificates for secondary housing financing.

Letter h
What is meant by "mutual funds" are containers used to gather funds from investor members to be further invested in a portfolio of securities by investment managers as referred to in the Law regarding the capital market.

Letter i
What is meant by "medium term notes" are debt instruments issued by companies and have a maturity period of 1 (one) to 5 (five) years and are registered at the Indonesia Central Securities Depository.

Letter j
What is meant by "repurchase agreement" is a transaction to sell securities with an agreement to repurchase at a specified time and price.

Letter k
Clearly stated.

Letter l
What is meant by "infrastructure investment funds in the form of collective investment contracts" are containers in the form of collective investment contracts used to gather funds from investor members and most of which are invested in infrastructure assets by investment managers.

Letter m
Clearly stated.

Letter n
Clearly stated.

Letter o
Clearly stated.

Paragraph (2)
Clearly stated.

Article 47

Letter a
See the explanation of Article 46 paragraph (1) letter a.

Letter b
What is meant by "Shariah government securities" are government securities issued based on Shariah Principles, as evidence of participation in the assets of Shariah government securities, both in rupiah currency and foreign currency as referred to in the Law regarding Shariah government securities.

Letter c
Clearly stated.

Letter d
Clearly stated.

Letter e
What is meant by "regional sukuk" are Shariah securities in the form of certificates or proof of ownership that have the same value and represent an inseparable or undivided portion of the underlying assets issued by regional governments.

Letter f
Clearly stated.

Letter g
Shariah asset-backed securities include, among others, Shariah asset-backed securities in the form of participation certificates for secondary housing financing.

Letter h
What is meant by "Shariah mutual funds" are mutual funds as referred to in the Law regarding the capital market and its implementing regulations, the management of which does not contradict Shariah Principles in the capital market.

Letter i
What is meant by "Shariah medium term notes" are evidence instruments issued by companies based on Shariah Principles, which essentially contain the company's financial obligations and have a maturity period of 1 (one) to 5 (five) years and are registered at the Indonesia Central Securities Depository.

Letter j
What is meant by "Shariah repurchase agreement" is a transaction to sell Shariah securities with an agreement to repurchase at a specified time and price.

Letter k
Clearly stated.

Letter l
See the explanation of Article 46 paragraph (1) letter l.

Letter m
Clearly stated.

Letter n
Clearly stated.

Letter o
Clearly stated.

Article 48

Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Paragraph (7)
Clearly stated.

Paragraph (8)
Letter a
What is meant by "Shariah principles in the capital market" are Islamic legal principles in Shariah activities in the capital market based on fatwas from institutions that have authority in setting fatwas in the Shariah field, as long as the said fatwa does not contradict OJK Regulations regarding the application of Shariah principles in the capital market and/or other OJK Regulations based on fatwas from institutions that have authority in setting fatwas in the Shariah field.

Letter b
Clearly stated.

Letter c
Clearly stated.

Letter d
Clearly stated.

Letter e
Clearly stated.

Paragraph (9)
Clearly stated.

Paragraph (10)
Clearly stated.

Paragraph (11)
Clearly stated.

Article 49
Non-bank financial service institutions include, among others, financing companies, venture capital companies, infrastructure financing companies, pawn companies, Indonesia Export Financing Institutions, microfinance institutions, and secondary housing financing companies.

Article 50
Clearly stated.

Article 51
Clearly stated.

Article 52
Clearly stated.

Article 53
Clearly stated.

Article 54
Clearly stated.

Article 55
Clearly stated.

Article 56

Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
The assessment of the health level of UUS individually is an inseparable part of the assessment of the health level of the Guarantee Company that is its parent.

Paragraph (5)
Clearly stated.

Article 57

Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
The calculation of current assets and current liabilities is carried out based on the applicable financial accounting standards in Indonesia.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Article 58
Clearly stated.

Article 59
Clearly stated.

Article 60
Clearly stated.

Article 61
Clearly stated.

Article 62
Clearly stated.

Article 63
Clearly stated.

Article 64
Clearly stated.

Article 65

Paragraph (1)
Letter a
Clearly stated.

Letter b
Clearly stated.

Letter c
Clearly stated.

Letter d
Clearly stated.

Letter e
Other parties include, among others, academics and researchers.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Article 66
Clearly stated.

Article 67

Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Paragraph (7)
Examples of similar Guarantee Institutions are:

Guarantee Company with Guarantee Company;
Shariah Guarantee Company with Shariah Guarantee Company;
Reinsurance Company with Reinsurance Company; and
Shariah Reinsurance Company with Shariah Reinsurance Company.

Article 68
Clearly stated.

Article 69
Clearly stated.

Article 70
Clearly stated.

Article 71

Paragraph (1)
For Guarantee Companies that have UUS, the obligation to submit monthly reports to the Financial Services Authority is carried out separately.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
Clearly stated.

Paragraph (5)
Clearly stated.

Paragraph (6)
Clearly stated.

Article 72
Clearly stated.

Article 73
Clearly stated.

Article 74
Clearly stated.

Article 75
Example of calculation of administrative penalty for late submission of monthly reports for the period of December 2024:

Submission Date	Monthly Report Description
January 10, 2025	Not subject to administrative penalty
January 11, 2025	Subject to administrative penalty of IDR 500,000.00 (five hundred thousand rupiah)
January 12, 2025	Subject to administrative penalty of IDR 1,000,000.00 (one million rupiah)
February 9, 2025 and thereafter	Declared not to have submitted the report and subject to administrative penalty of IDR 30,000,000.00 (thirty million rupiah)

Article 76
Clearly stated.

Article 77
Clearly stated.

Article 78
The provision of different approvals or policies is intended, among others, to:
a. support national policies; b. maintain public interests;
c. maintain industry growth; and/or
d. maintain healthy business competition.
Examples of conditions requiring specific consideration, among others, are extraordinary events that can cause a large increase in morbidity and mortality and also impact the economy and society, thus requiring attention and handling by all relevant parties and regulated in other provisions regarding consideration in facing possible extraordinary events.

Article 79
Examples of government programs include, among others, the People's Business Credit (KUR) program and credit in the context of accelerating the National Economic Recovery (PEN).

Article 80
Example:
Guarantee Certificates that are still valid with a guarantee period ending after this OJK Regulation takes effect, remain valid without the need for any changes.
Guarantee Certificates that are still valid with a guarantee period ending before this OJK Regulation takes effect, need to be adjusted in accordance with the provisions of this OJK Regulation.

Article 81
Clearly stated.

Article 82
Clearly stated.

Article 83
Clearly stated.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 149/OJK

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 11 YEAR 2025
REGARDING
THE CONDUCT OF GUARANTEE INSTITUTION BUSINESS

FORMAT 1 APPLICATION FOR APPROVAL OF BUSINESS ACTIVITIES

To the
Executive Head of Insurance, Guarantee, and Pension Fund Supervision u.p. Head of the Department of Licensing, Special Examinations, and Quality Control of Insurance, Guarantee, and Pension Fund Supervision Wisma Mulia 2 Building, 11th Floor Gatot Subroto Avenue No. 42 Jakarta 12710

Referring to Financial Services Authority Regulation Number ... regarding the Conduct of Guarantee Institution Business, we hereby submit an application for approval that we will commence guarantee/Shariah guarantee/reinsurance/Shariah reinsurance*) business activities in the form of:

.............................................................................................................
.............................................................................................................
.............................................................................................................
On the date of .....

As supporting data, we hereby submit documents containing descriptions covering:

guarantee products;
description of guarantee benefits;
calculation of setting IJP or IJK;
claim mechanism; and
rights and obligations of the parties.

We can inform that for the purpose of this reporting, you can contact Mr./Ms.*) ..., via email address ... or phone number ...

Thus, we submit this report, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-owned Enterprise/ PT/ Cooperative*)..........
……………………………….
*) Strike out what is not needed

FORMAT 2 APPLICATION FOR OTHER BUSINESS ACTIVITIES OF GUARANTEE INSTITUTIONS

Referring to Financial Services Authority Regulation Number ... regarding the Conduct of Guarantee Institution Business, we hereby submit an application for approval to conduct other business activities in the form of .......

As supporting data, we hereby submit documents containing descriptions covering:

business activities to be implemented;
business prospect analysis; and
examples of cooperation agreements to be used for operations.

We can inform that for the purpose of this reporting, you can contact Mr./Ms.*) ..., via email address ... or phone number ...

Thus, we submit this report, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-owned Enterprise/ PT/ Cooperative*)..........
……………………………….
*) Strike out what is not needed

FORMAT 3 APPLICATION FOR REGISTRATION OF REPORTING ON JOINT GUARANTEE ACTIVITIES

Referring to Financial Services Authority Regulation Number ... regarding the Conduct of Guarantee Institution Business, we hereby report that we will commence joint guarantee (co-guarantee) activities.

As supporting data, we hereby submit documents containing descriptions covering:

description of joint guarantee activities to be implemented;
description of prospective Guarantee Recipients, leader, and members as well as the liability share of each joint guarantee member;
business prospect analysis; and
draft cooperation agreement.

We can inform that for the purpose of this reporting, you can contact Mr./Ms.*) ..., via email address ... or phone number ...

Thus, we submit this report, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-owned Enterprise/ PT/ Cooperative*)..........
……………………………….
*) Strike out what is not needed

FORMAT 4 APPLICATION FOR REGISTRATION OF REPORTING ON MARKETING COOPERATION (CO-BRANDING) ACTIVITIES OF GUARANTEE INSTITUTIONS

Referring to Financial Services Authority Regulation Number ... regarding the Conduct of Guarantee Institution Business, we hereby report that we will commence marketing cooperation (co-branding) activities.

As supporting data, we hereby submit documents containing descriptions covering:

description of the marketing cooperation (co-branding) mechanism to be implemented;
description of prospective Guarantee Recipients, Guarantee Institutions, and Financial Institutions, as well as the scope of responsibility of each Party;
business prospect analysis; and
draft marketing cooperation agreement.

We can inform that for the purpose of this reporting, you can contact Mr./Ms.*) ..., via email address ... or phone number ...

Thus, we submit this report, and for your attention, Sir/Madam*), we express our gratitude.

Board of Directors
State-owned Enterprise/ PT/ Cooperative*)..........
……………………………….
*) Strike out what is not needed

CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
OF THE REPUBLIC OF INDONESIA,

MAHENDRA SIREGAR

Signed,

Lineage: Superseded

Timeline

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