OJK Regulation No. 29 of 2024 on Alternative Credit Scoring

EXTRACT
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 29 OF 2024
ON
ALTERNATIVE CREDIT SCORING
BY THE GRACE OF THE ALMIGHTY GOD
THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that in order to increase the national financial inclusion rate, particularly for parties who do not have a credit history, have limited credit history, and micro, small, and medium enterprises, support is needed from alternative credit scorers that provide an image of the consumer's condition or profile in receiving financial services; b. that alternative credit scorers play a role in credit feasibility assessments based on relevant alternative data in order to provide services to a wider segment of society, including society that does not have a credit history or has limited credit history;
c. that in order to ensure that alternative credit scorers can provide optimal benefits and mitigate risks to the financial sector, an adequate regulatory framework is needed, particularly regarding governance and risk management of each party conducting business activities as an alternative credit scorer;
d. that based on considerations as referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation on Alternative Credit Scoring; Recalling:

1. 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
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(State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
2. 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:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION ON ALTERNATIVE CREDIT SCORING.

CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are meant as:

1. Financial Sector Technology Innovation, hereinafter abbreviated as FSTI, is technology-based innovation that impacts products, activities, services, and business models in the digital financial ecosystem.
2. FSTI Provider is any party that conducts FSTI.
3. Alternative Credit Scorer, hereinafter abbreviated as ACS, is an FSTI Provider that processes data other than credit or financing data with the aim of describing the feasibility, condition, or profile of consumers.
4. Financial Service Institution, hereinafter abbreviated as FSI, is an institution that conducts activities in the banking, capital market, insurance, pension fund, venture capital, microfinance institution, financing institution, and other financial service institutions sectors.
5. Financial Service Business Actor, hereinafter abbreviated as FSB, is:
   a. FSI and/or parties that conduct business activities in collecting funds, disbursing funds, and/or managing funds in the financial services sector; and b. other financial service business actors, whether conducting business activities conventionally or based on Sharia principles in accordance with provisions of legislation in the financial services sector.
6. Consumer is any person who owns and/or utilizes products and/or services provided by FSB.
7. User Party is a party that receives and/or uses ACS products and services.
8. Credit Score is the result of ACS processing that describes the feasibility, condition, or profile of Consumers to become considerations for FSB in providing financial services to Consumers.
9. Credit or Financing Data is data regarding the condition of fund provision facilities for debtors or customers.
10. Alternative Data is data other than Credit or Financing Data used by ACS to process data in generating Credit Scores.
11. Controlling Shareholder, hereinafter abbreviated as CS, is a legal entity, individual, and/or business group that owns ACS shares of 25% (twenty-five percent) or more of the issued shares and has voting rights, or owns ACS shares of less than 25% (twenty-five percent) of the issued shares and has voting rights but can be proven to have controlled ACS, directly or indirectly.
12. Board of Directors is the ACS organ authorized and fully responsible for managing ACS for the interests of ACS, in accordance with the purposes and objectives of ACS and representing ACS, both inside and outside of court in accordance with the provisions of the Articles of Association.
13. Board of Commissioners is the ACS organ tasked with conducting general and/or specific supervision in accordance with the Articles of Association and providing advice to the Board of Directors.
14. Key Party is a party that owns, manages, supervises, and/or has significant influence over ACS.
15. Personal Data is data about identified or identifiable individuals separately or combined with other information, either directly or indirectly through electronic or non-electronic systems.
16. Sandbox/Innovation Development Room, hereinafter called Sandbox, is a facility and mechanism provided by the Financial Services Authority to facilitate testing and development of innovation to assess the feasibility and reliability of FSTI.
17. Electronic System is a series of electronic devices and procedures that function to prepare, collect, process, analyze, store, display, announce, send, and/or disseminate electronic information.
18. Electronic Document is any electronic information created, forwarded, sent, received, or stored in analog, digital, electromagnetic, optical, or similar forms, which can be seen, displayed, and/or heard through computers or Electronic Systems, including but not limited to writings, sounds, images, maps, designs, photos or similar, letters, signs, numbers, access codes, symbols, or perforations that have meaning or meaning or can be understood by people who are able to understand them.
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Article 2
ACS is conducted with the principles:
a. utilization of technology innovation support; b. application of credit feasibility assessment methods that are transparent, fair, accountable, and not misleading;
c. fulfillment of Personal Data protection principles;
d. fulfillment of Consumer protection principles; e. increasing financial inclusion; and f. reliability of information technology systems.

Article 3
(1) Business activities conducted by ACS involve processing Alternative Data that generates Credit Scores.
(2) In addition to the business activities conducted by ACS as referred to in paragraph (1), ACS may conduct other processing activities that utilize Alternative Data to provide added value to User Parties. (3) Activities as referred to in paragraph (2) must obtain approval from the Financial Services Authority.

CHAPTER II
INSTITUTIONAL STRUCTURE
First Section
Legal Entity and Capital
Article 4
(1) Any party conducting ACS business activities must first obtain a business license from the Financial Services Authority.
(2) The legal entity of ACS is a limited liability company.
(3) The paid-up capital of ACS is set at a minimum of IDR 5,000,000,000.00 (five billion rupiah).
(4) The Financial Services Authority has the authority to set different paid-up capital for ACS than that specified in paragraph (3) with specific considerations. (5) The source of ACS paid-up capital as referred to in paragraph (3) is prohibited from originating from:
a. money laundering, terrorism financing, and proliferation financing of weapons of mass destruction activities; b. loans; and
c. other activities that contradict provisions of legislation.
(6) The paid-up capital as referred to in paragraph (3) must be paid in cash, in full, and placed in the name of ACS at a commercial bank, Sharia commercial bank, or Sharia business unit of a commercial bank in Indonesia. (7) ACS must ensure capital adequacy in conducting ACS operations.

Article 5
(1) ACS is owned by:
a. Indonesian citizens; b. Indonesian legal entities;
c. foreign citizens; and/or
d. foreign legal entities.
(2) The limitation on ACS share ownership by foreign citizens and/or foreign legal entities as referred to in paragraph (1) letters c and d, both directly and indirectly, is at most 85% (eighty-five percent) of the paid-up capital. (3) ACS share ownership is prohibited from originating from:
a. domestic investors; and b. foreign investors, who conduct investment in the form of a limited liability company by making agreements and/or statements confirming share ownership in a limited liability company for and on behalf of others. (4) The foreign ownership limitation on ACS as referred to in paragraph (2) does not apply to ACS that is a public company and trades its shares on the stock exchange.

Second Section
ACS Institutional Structure and Management
Article 6
(1) ACS must have at least:
a. 2 (two) members of the Board of Directors; and b. 1 (one) member of the Board of Commissioners.
(2) At least 1 (one) member of the Board of Directors as referred to in paragraph (1) letter a must have knowledge and/or experience in:
a. the credit scoring industry; b. the information technology industry; and/or
c. FSI.
(3) The knowledge and/or experience as referred to in paragraph (2) is evidenced by:
a. certification; or b. work experience in the industry as referred to in paragraph (2) for at least 3 (three) years.
(4) Board of Directors members may only hold concurrent positions as:
a. board of directors members; b. board of commissioners members; or
c. executive officials,
from companies, organizations, or institutions that are non-profit.

Third Section
Use of Foreign Labor
Article 7
(1) ACS may use foreign labor by meeting the criteria:
a. holding positions:

1. 1 (one) level below the Board of Directors; and/or
2. experts or consultants;
   b. the use of foreign labor is prohibited from exceeding a period of 3 (three) years for each foreign labor for 1 (one) term of office;
   c. having expertise in accordance with the field of duty that will be their responsibility; and
   d. meeting provisions of legislation.
   (2) In the use of foreign labor as referred to in paragraph (1), ACS must:
   a. first consider the availability of Indonesian labor for the fields and expertise needed; b. provide 1 (one) Indonesian labor as a companion labor for each foreign labor;
   c. conduct technology transfer and/or skill transfer from foreign labor to companion labor through education and/or work training; and
   d. meet provisions of legislation regarding labor.
   (3) ACS is prohibited from utilizing foreign labor in the fields of duty:
   a. personnel; and b. compliance.

Article 8
(1) Plans for the use and plans for changes in the use of foreign labor must be implemented in accordance with provisions of legislation regarding the use of foreign labor. (2) ACS must submit plans for the use and plans for changes in the use of foreign labor as referred to in paragraph (1) as part of the annual business plan submitted to the Financial Services Authority. (3) Plans for the use of foreign labor as referred to in paragraph (1) contain at least:
a. names and information regarding foreign labor; b. reasons for using foreign labor and reasons for not/not yet using Indonesian labor in the fields of duty held by foreign labor;
c. fields of duty and positions or titles to be filled including scope and competence;
d. plans for term of office; and e. plans for technology transfer and/or skill transfer programs.
(4) In the event of plans to change the use of foreign labor as experts or consultants, ACS must submit plans along with reasons for changing the use of foreign labor to the Financial Services Authority. (5) ACS employing foreign labor must report the use of foreign labor to the Financial Services Authority at most 5 (five) working days before the foreign labor is employed, accompanied by documents related to labor.

Fourth Section
Licensing Application Procedures
Article 9
(1) ACS licensing applications are submitted by prospective ACS to the Financial Services Authority through the Financial Services Authority's licensing system, accompanied by fulfillment of application document requirements for business licenses as ACS listed in Appendix Part A, which is an integral part of this Financial Services Authority Regulation. (2) Approval or statements of non-approval of business license applications are given by the Financial Services Authority at most 20 (twenty) working days after complete application documents are received. (3) In providing approval or statements of non-approval as referred to in paragraph (2), the Financial Services Authority conducts:
a. research and analysis of application documents; b. assessment of capability and propriety;
c. research on operational readiness including information technology systems used; and
d. other analyses based on the Financial Services Authority's considerations.
(4) To support the research on operational readiness as referred to in paragraph (3) letter c, ACS must submit documents of international standard certifications related to information security management systems issued by:
a. certification bodies that have accreditation from the National Accreditation Committee; or b. certification bodies that have the authority to issue documents of international standard certifications related to information security management systems, for certification bodies that do not have accreditation from the National Accreditation Committee. (5) Requirements as referred to in paragraph (4) must be fulfilled by ACS within a maximum period of 3 (three) years after obtaining a business license. (6) ACS that has not obtained certification as referred to in paragraph (4) and paragraph (5) must have certifications or other documents containing policies related to information system security that contain control mechanisms in:
a. organizational aspects, containing at least delegation of authority and organizational structure; b. human resource aspects, containing at least fulfillment of human resources in positions related to information technology and credit scoring, minimum competence requirements, and policies/strategies for human resource competence development (certification/training);
c. physical device aspects, containing at least the prospective ACS's policies regarding the availability and security of physical information technology devices; and
d. technology aspects, containing at least network, application, and data security.
(7) To support the implementation of research, analysis, and assessments as referred to in paragraph (3), based on specific considerations, the Financial Services Authority may request additional documents and/or information from prospective ACS. (8) In the event that, based on the Financial Services Authority's assessment, application documents as referred to in paragraph (1) are incomplete or do not comply with this Financial Services Authority Regulation, prospective ACS must submit the fulfillment of application document completeness and adjustments at most 20 (twenty) working days from the date of notification from the Financial Services Authority. (9) In the event that prospective ACS does not meet the completeness and/or adjust application documents as referred to in paragraph (8), prospective ACS is considered to have canceled the business license application. (10) In the event that business license applications as referred to in paragraph (1) cannot be approved, the Financial Services Authority communicates in writing and accompanied by reasons for non-approval.

Article 10
(1) ACS must submit approval applications to the Financial Services Authority at most 20 (twenty) working days before conducting activities as referred to in Article 3 paragraph (2). (2) Regarding applications as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. provide approval or statements of non-approval based on assessments conducted by the Financial Services Authority; or b. require ACS to participate in Sandbox if the results of the Financial Services Authority's assessment show that the proposed activities are not within the scope of ACS activities, but meet the innovation feasibility criteria as referred to in Financial Services Authority Regulations concerning the conduct of FSTI.

Article 11
(1) The Financial Services Authority has the authority to order the cessation of ACS business activities that have not obtained approval from parties violating the provisions of Article 10 paragraph (1). (2) Orders for the cessation of business activities as referred to in paragraph (1) can be implemented in accordance with provisions of legislation regulating written orders.

Fifth Section
Electronic System Provider Registration
Article 12
(1) ACS that has obtained a business license from the Financial Services Authority must be registered as an Electronic System Provider in accordance with provisions of legislation concerning Electronic System Providers in the private sector. (2) ACS as referred to in paragraph (1) must submit registration applications as Electronic System Providers to the competent authority at most 30 (thirty) calendar days since the date of issuance of the business license from the Financial Services Authority. (3) Registration applications as referred to in paragraph (2) are copied to the Financial Services Authority simultaneously with submission to the competent authority. (4) ACS is prohibited from conducting business activities as referred to in Article 3 paragraph (1) and paragraph (2) before being registered as an Electronic System Provider with the competent authority. (5) ACS must obtain registration marks as an Electronic System Provider within a period of 60 (sixty) calendar days since the issuance of the business license from the Financial Services Authority. (6) ACS must submit copies of registration marks as Electronic System Providers to the Financial Services Authority at most 7 (seven) calendar days since the date of the registration mark letter as an Electronic System Provider. (7) ACS must conduct business activities as referred to in Article 3 paragraph (1) and paragraph (2) at most 30 (thirty) working days since being registered as an Electronic System Provider from the competent authority. (8) Based on specific considerations, the Financial Services Authority may extend the time periods as referred to in paragraph (5) and paragraph (7). (9) In the event that ACS does not meet the provisions in paragraph (5), paragraph (7), and/or paragraph (8), the Financial Services Authority cancels the business license that has been issued for ACS.

Sixth Section
Capability and Propriety Assessment
Article 13
(1) Prospective Key Parties must obtain approval from the Financial Services Authority before carrying out actions, duties, and functions as Key Parties.
(2) Key Parties as referred to in paragraph (1) include:
a. controlling Key Parties; and b. managing Key Parties.
(3) To provide approval as referred to in paragraph (1), the Financial Services Authority conducts capability and propriety assessments of prospective Key Parties in accordance with the capability and propriety assessment guidelines for ACS listed in Appendix Part K, which is an integral part of this Financial Services Authority Regulation. (4) Capability and propriety assessments are conducted to assess prospective Key Parties as referred to in paragraph (2) must meet the requirements:
a. integrity and financial feasibility for controlling Key Parties; and b. integrity, financial reputation, and competence for managing Key Parties.
(5) Integrity requirements for Key Parties as referred to in paragraph (4) contain at least:
a. capable of performing legal acts; b. having good ethics and morals;
c. having commitments to comply with provisions of legislation and support Financial Services Authority policies;
d. having commitments to the development and strengthening of a healthy industry; e. maintaining the confidentiality and security of Consumer data and information; and f. not being parties prohibited from becoming Key Parties. (6) Financial reputation requirements for managing Key Parties as referred to in paragraph (4) letter b, contain at least evidence of:
a. not having non-performing credits and/or financing; and b. never being declared bankrupt and/or never having been shareholders, board of directors members, or board of commissioners members who were declared guilty causing a company to be declared bankrupt within the last 5 (five) years before nomination. (7) Financial feasibility requirements for controlling Key Parties as referred to in paragraph (4) letter a, contain at least evidence of:
a. having financial reputation as referred to in paragraph (6); b. having financial capabilities that support the development of ACS business; and
c. having commitments to take necessary actions if ACS faces financial difficulties.
(8) Competence requirements for managing Key Parties as referred to in paragraph (4) letter b contain at least:
a. knowledge and/or experience in fields relevant to the position; and b. the ability to manage and develop ACS strategically.
(9) Managing Key Parties who oversee information technology functions must have competence including:
a. knowledge and/or experience in the fields of information system or application development; and b. knowledge and/or experience in the fields of information system security.

Seventh Section
Reassessment of Key Parties
Article 14
(1) The Financial Services Authority may conduct reassessments against:
a. ACS Key Parties, consisting of:

1. controlling Key Parties; and
2. managing Key Parties; and
   b. Key Parties who no longer own, manage, supervise, and/or have influence over ACS at the time of the reassessment.
   (2) The Financial Services Authority conducts reassessments as referred to in paragraph (1) in accordance with the reassessment guidelines for ACS Key Parties listed in Appendix Part Q, which is an integral part of this Financial Services Authority Regulation. (3) Reassessments against:
   a. controlling Key Parties as referred to in paragraph (1) letter a number 1; and https://jdih.ojk.go.id/

b. Key Parties who no longer own, and/or have influence over the PKA at the time of the re-evaluation as referred to in paragraph (1) letter b, are subject to re-evaluation if there is involvement in, and/or responsibility for, integrity issues, and/or financial viability issues.

(4) Re-evaluation of:
a. Key Party managers as referred to in paragraph (1) letter a number 2; and b. Key Parties who no longer manage, and/or oversee the PKA at the time of the re-evaluation as referred to in paragraph (1) letter b, is conducted if there are indications of involvement, dual roles, and/or responsibility for integrity, financial reputation, and/or competence issues.

(5) Re-evaluation as referred to in paragraph (1) is conducted based on evidence, data, and/or information obtained from supervision results or other information.

(6) Re-evaluation as referred to in paragraph (1) is conducted with the following steps:
a. clarification of evidence, data, and/or information to the Key Party being re-evaluated; b. determination and transmission of the preliminary re-evaluation results to the Key Party being re-evaluated;
c. response from the Key Party being re-evaluated regarding the preliminary re-evaluation results; and
d. determination and notification of the final re-evaluation results to the Key Party being re-evaluated with the following predicates:

1. pass; or
2. fail.

(7) The Financial Services Authority may determine the final re-evaluation results without following all re-evaluation steps as referred to in paragraph (6) with specific considerations.

(8) The re-evaluation results are binding and must be complied with by the PKA.

Article 15
(1) Integrity and/or financial viability issues as referred to in Article 14 paragraph (3) consist of:
a. actions, whether direct or indirect, consisting of:

1. influencing and/or ordering Key Party managers and/or PKA employees to hide and/or obscure violations of regulations, financial conditions, and/or actual transactions;
2. influencing and/or ordering Key Party managers, and/or PKA employees to provide unfair benefits to shareholders, Key Parties, PKA employees, and/or other parties that can harm or reduce PKA profits; and/or
3. influencing and/or ordering Key Party managers, and/or PKA employees to commit acts violating good PKA management principles;
   b. proven to have committed criminal offenses that have been decided by a court and have permanent legal force;
   c. causing the PKA to experience difficulties that endanger the continuity of the PKA's business and/or can endanger the financial services industry;
   d. not executing orders from the Financial Services Authority to perform and/or not perform certain actions; e. having non-performing loans and/or financing at Financial Service Institutions (LJK), other financial service institutions, and/or being a controller, board of director member, board of commissioner member, or equivalent of a company that has non-performing loans and/or financing; f. proven to be declared bankrupt and/or being a shareholder, board of director member, board of commissioner member, or equivalent, who is declared guilty of causing a company to be declared bankrupt or having its business license revoked; g. not taking necessary measures when the PKA faces capital difficulties; h. refusing to provide commitments and/or not fulfilling commitments agreed upon with the Financial Services Authority and/or the government;
   i. hindering or interfering with:
4. efforts and implementation of the Financial Services Authority's authority; and/or
5. efforts by PKA Key Parties and/or other parties in handling PKA issues; and/or
   j. integrity and/or financial viability issues other than letters a through i that contradict statutory regulations.

(2) Integrity, financial reputation, and/or competence issues as referred to in Article 14 paragraph (4) consist of:
a. actions, whether direct or indirect, consisting of:

1. hiding and/or obscuring violations of regulations or financial conditions and/or actual transactions;
2. providing unfair benefits to shareholders, Key Parties, PKA employees, and/or other parties that can harm or reduce PKA profits; and/or
3. committing acts violating good PKA management principles;
   b. proven to have committed criminal offenses that have been decided by a court and have permanent legal force;
   c. causing the PKA to experience difficulties that endanger the continuity of the PKA's business and/or can endanger the financial services industry;
   d. not executing orders from the Financial Services Authority to perform and/or not perform certain actions; e. having non-performing loans and/or financing at Financial Service Institutions (LJK), other financial service institutions, and/or being a controller, board of director member, board of commissioner member, or equivalent of a company that has non-performing loans and/or financing; f. proven to be declared bankrupt and/or being a shareholder, board of director member, board of commissioner member, or equivalent, who is declared guilty of causing a company to be declared bankrupt or having its business license revoked; g. not conducting strategic management for the healthy development of the PKA; h. refusing to provide commitments and/or not fulfilling commitments agreed upon with the Financial Services Authority and/or the government;
   i. hindering or interfering with:
4. efforts and implementation of the Financial Services Authority's authority; and/or
5. efforts by PKA Key Parties and/or other parties in handling PKA issues; and/or
   j. integrity, financial reputation, and/or competence issues other than letters a through i that contradict statutory regulations.

Article 16
(1) Key Parties who are still in office and are determined with a "pass" predicate are declared to meet the requirements to remain as Key Parties.

(2) Controlling Key Parties determined with a "fail" predicate due to:
a. integrity issues, are prohibited from becoming:

1. Controlling Key Parties or holding shares in PKA and/or LJK; and/or
2. Manager Key Parties in PKA and/or LJK; and/or
   b. financial viability issues, are prohibited from becoming:
3. Controlling Key Parties or holding shares in the PKA where the Key Party is subject to re-evaluation; and/or
4. Manager Key Parties in the PKA where the Key Party is subject to re-evaluation in cases where the financial viability issue involves financial reputation.

(3) Manager Key Parties determined with a "fail" predicate due to:
a. integrity issues, are prohibited from becoming:

1. Controlling Key Parties or holding shares in PKA and/or LJK; and/or
2. Manager Key Parties in PKA and/or LJK;
   b. financial reputation issues, are prohibited from becoming:
3. Controlling Key Parties or holding shares in the PKA where the Key Party is subject to re-evaluation; and/or
4. Manager Key Parties in the PKA where the Key Party is subject to re-evaluation; and/or
   c. competence issues, are prohibited from becoming Manager Key Parties in the PKA where the Key Party is subject to re-evaluation.

Article 17
(1) The imposition of a ban period on Key Parties determined with a "fail" predicate as referred to in Article 16 paragraph (2) and/or paragraph (3) is set:
a. for a period of 3 (three) years for:

1. Controlling Key Parties and Key Parties who no longer own and/or have influence over the PKA at the time of re-evaluation, if proven to have committed acts as referred to in Article 15 paragraph (1) letter a number 3, letter d, letter e, letter g, letter h, letter i, or letter j;
2. Manager Key Parties and Key Parties who no longer manage and/or oversee the PKA at the time of re-evaluation, if proven to have committed acts as referred to in Article 15 paragraph (2) letter a number 3, letter d, letter e, letter g, letter h, letter i, or letter j;
   b. for a period of 5 (five) years for:
3. Controlling Key Parties and Key Parties who no longer own and/or have influence over the PKA at the time of re-evaluation, if:
   a) proven to have committed acts as referred to in Article 15 paragraph (1) letter a number 1 or letter a number 2; or b) proven to have committed acts as referred to in Article 15 paragraph (1) letter a number 3, letter d, letter e, letter g, letter h, letter i, or letter j, and the acts mentioned:

1. were committed repeatedly;
2. were committed cumulatively; and/or
3. were proven to benefit oneself or other parties;

2. Manager Key Parties and Key Parties who no longer manage and/or oversee the PKA at the time of re-evaluation, if:
   a) proven to have committed acts as referred to in Article 15 paragraph (2) letter a number 1 or letter a number 2; or b) proven to have committed acts as referred to in Article 15 paragraph (2) letter a number 3, letter d, letter e, letter g, letter h, letter i, or letter j, and the acts mentioned:

1. were committed repeatedly;
2. were committed cumulatively; and/or
3. were proven to benefit oneself or other parties; or
   c. for a period of 20 (twenty) years:

1. for Controlling Key Parties and Key Parties who no longer own and/or have influence over the PKA at the time of re-evaluation, if proven to have committed acts as referred to in Article 15 paragraph (1) letter b, letter c, or letter f;
2. for Manager Key Parties and Key Parties who no longer manage and/or oversee the PKA at the time of re-evaluation, if proven to have committed acts as referred to in Article 15 paragraph (2) letter b, letter c, or letter f.

(2) The ban period as referred to in paragraph (1) is calculated from:
a. the date of the Financial Services Authority's determination letter as referred to in Article 14 paragraph (6) letter d, if it is the final result of the Financial Services Authority's re-evaluation; or b. the date of the court decision with permanent legal force declaring the Key Party being re-evaluated proven to have committed criminal offenses as referred to in Article 15 paragraph (1) letter b and paragraph (2) letter b or proven to be declared bankrupt and/or caused bankruptcy as referred to in Article 15 paragraph (1) letter f and paragraph (2) letter f.

Part Eight
Institutional and Management Changes

Article 18
(1) The increase in paid-in capital of the PKA must fulfill the provisions regarding share ownership limits as referred to in Article 5 paragraph (2).

(2) The source of funds in the increase in paid-in capital as referred to in paragraph (1) is prohibited from originating from:
a. money laundering, terrorism financing, and proliferation financing of weapons of mass destruction activities; b. loans; and
c. other activities that contradict statutory regulations.

Article 19
(1) PKA that conducts:
a. changes in the composition of the Board of Directors and/or Board of Commissioners must submit a change report accompanied by supporting documents for the mentioned composition changes; or b. replacement or addition of Board of Directors and/or Board of Commissioners members, candidates for Board of Directors and/or Board of Commissioners members must fulfill the suitability and propriety assessment provisions in accordance with Article 13.

(2) In addition to fulfilling the provisions in this Financial Services Authority Regulation, candidates for Board of Directors and/or Board of Commissioners members as referred to in paragraph (1) must fulfill requirements in accordance with statutory regulations.

(3) The Financial Services Authority provides approval or rejection for the submission of candidates for Board of Directors and/or Board of Commissioners members as referred to in paragraph (1) letter b within a maximum of 20 (twenty) working days after the complete application documents are received.

(4) The Financial Services Authority's approval as referred to in paragraph (3) is valid for a maximum of 60 (sixty) working days from the date of the Financial Services Authority's approval.

(5) Within the 60 (sixty) working day period as referred to in paragraph (4), the PKA must:
a. hold a General Meeting of Shareholders to appoint the Board of Directors and/or Board of Commissioners members approved by the Financial Services Authority; and b. submit a report on the appointment of the Board of Directors and/or Board of Commissioners in letter a to the Financial Services Authority after receiving the notification acceptance letter from the competent authority.

(6) In the event that the PKA holds the General Meeting of Shareholders first, the PKA must:
a. include a statement in the minutes of the General Meeting of Shareholders that the effective date of the appointment of the Board of Directors and/or Board of Commissioners members is from the date of the Financial Services Authority's approval; and b. ensure reporting obligations to the competent authority in accordance with statutory regulations.

(7) In the event that the provisions as referred to in paragraph (5) are not fulfilled by the PKA, the Financial Services Authority's approval is declared invalid.

(8) In the event that there are Board of Directors and/or Board of Commissioners members who will resign and/or step down, the PKA must ensure that the number of Board of Directors and Board of Commissioners members as referred to in Article 6 paragraph (1) remains fulfilled.

(9) Candidates for Board of Directors and/or Board of Commissioners members who have not obtained approval from the Financial Services Authority are prohibited from performing duties and functions as Board of Directors and/or Board of Commissioners members, even if they have obtained approval from the General Meeting of Shareholders.

(10) The dismissal and/or resignation of Board of Directors and/or Board of Commissioners members caused by the replacement of Board of Directors and/or Board of Commissioners members, as referred to in paragraph (1) letter b, must be reported in writing by the PKA to the Financial Services Authority within a maximum of 5 (five) working days from the effective date of dismissal and/or resignation.

Article 20
(1) The PKA must obtain approval from the Financial Services Authority if:
a. conducting ownership changes that result in a change of control; b. conducting a merger;
c. conducting a consolidation; or
d. being taken over by another PKA.

(2) Ownership changes resulting in a change of control, mergers, consolidations, or takeovers as referred to in paragraph (1) must:
a. be conducted in accordance with statutory regulations governing the transfer of ownership of limited liability companies; and b. obtain approval from the General Meeting of Shareholders of each PKA.

(3) Requests for approval as referred to in paragraph (1) are submitted in writing by the PKA to the Financial Services Authority accompanied by data on the planned ownership changes resulting in a change of control, mergers, consolidations, or takeovers.

Article 21
(1) The PKA must submit reports to the Financial Services Authority regarding:
a. increase in paid-in capital; b. changes in ownership composition;
c. changes in the business group structure up to the ultimate owner and controller;
d. appointment of Board of Directors and/or Board of Commissioners members who have obtained Financial Services Authority approval; and e. implementation of mergers, consolidations, or takeovers.

(2) Submission of reports as referred to in paragraph (1) is conducted in accordance with the deadlines for submitting incidental reports.

Part Nine
Administrative Sanctions

Article 22
(1) PKA that violates the provisions as referred to in Article 4 paragraph (5), Article 5 paragraph (3), Article 6 paragraph (1), paragraph (2), Article 7 paragraph 1 letter b, paragraph (2), paragraph (3), Article 8 paragraph (1), paragraph (2), paragraph (5), Article 9 paragraph (5), Article 12 paragraph (2), paragraph (4), Article 13 paragraph (1), Article 14 paragraph (8), Article 18, Article 19 paragraph (1), paragraph (2), paragraph (5), paragraph (8), paragraph (9), paragraph (10), Article 20 paragraph (1), Article 21 paragraph (1), shall be subject to administrative sanctions consisting of:
a. written warning; b. temporary suspension, partial, or total cessation of activities including the implementation of cooperation;
c. administrative fine, maximum of Rp1,000,000,000 (one billion rupiah);
d. listing of Key Parties in the list of persons with bad records in the financial sector; and e. revocation of business license.

(2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, and e may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a.

CHAPTER III
GOVERNANCE

Part One
Implementation of Governance

Article 23
(1) The PKA must implement good governance in conducting its business activities at every level or tier of the organization.

(2) The implementation of good governance as referred to in paragraph (1) must at least be manifested in the form of:
a. active supervision by the Board of Directors and Board of Commissioners; b. implementation of risk management, compliance, internal audit, external audit, and PKA operational procedures;
c. handling of conflicts of interest;
d. feasibility of the annual business plan; e. transparency of financial and non-financial conditions to the authority; and f. implementation of control functions regarding Personal Data Protection and information system security.

(3) Information system security governance aspects as referred to in paragraph (2) letter f must at least include:
a. availability of written policies and procedures for information systems; b. use of secure and reliable systems at least:

1. securing and protecting data confidentiality;
2. model development;
3. fulfillment of certifications, security standards, and/or system reliability; and
4. maintenance and improvement of technology security;
   c. implementation of cybersecurity standards;
   d. data and information security; and e. periodic implementation of information system audits.

(4) The PKA must submit reports on the implementation of governance as part of the annual report.

Article 24
(1) In conducting service offerings, the PKA must have a website and/or device-based application accessible by Users containing at least:
a. information regarding the PKA profile; b. information openness related to products and services; and
c. user service information.

(2) The PKA must place data centers and disaster recovery centers within the territory of the Republic of Indonesia.

Article 25
(1) The PKA may use the services of other parties regarding Electronic Systems that are non-critical.

(2) The PKA must ensure that other parties as referred to in paragraph (1) fulfill the information system security governance aspects as referred to in Article 23 paragraph (3).

Article 26
(1) The PKA must provide audit trails for all activities within the PKA's Electronic System.

(2) The PKA must ensure that the information technology system devices used support the provision of audit trails.

(3) Audit trails as referred to in paragraph (1) are used for supervision, law enforcement, dispute resolution, verification, testing, and other purposes.

Part Two
Administrative Sanctions

Article 27
(1) PKA that violates the provisions as referred to in Article 23 paragraph (1), paragraph (4), Article 24, Article 25 paragraph (2), Article 26 paragraph (1), paragraph (2), shall be subject to administrative sanctions consisting of:
a. written warning; b. temporary suspension, partial, or total cessation of activities including the implementation of cooperation;
c. administrative fine, maximum of Rp1,000,000,000 (one billion rupiah);
d. listing of Key Parties in the list of persons with bad records in the financial sector; and e. revocation of business license.

(2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, and e may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a.

CHAPTER IV
PKA OPERATION

Part One
PKA Activities

Article 28
(1) In conducting business activities as referred to in Article 3 paragraph (1) and paragraph (2), the PKA conducts activities including:
a. acquisition and collection of Alternative Data; b. processing and analysis of Alternative Data; and
c. distribution of business activity results.

(2) In conducting activities as referred to in paragraph (1), the PKA acting as an Alternative Data processor and/or Alternative Data controller must comply with statutory regulations regarding personal data protection.

(3) Processing and analysis of Alternative Data as referred to in paragraph (1) letter b includes processing and analysis activities of Alternative Data utilizing technology and models developed by the PKA.

(4) Distribution of business activity results as referred to in paragraph (1) letter c consists of activities distributing business activity results to User Parties.

Part Two
Data Sources

Article 29
(1) The PKA obtains Alternative Data as referred to in Article 28 paragraph (1) letter a through:
a. partnerships with data providers; and/or b. other Alternative Data sources.

(2) Other Alternative Data sources as referred to in paragraph (1) letter b can be owned directly or obtained without partnership.

(3) Alternative Data obtained by the PKA as referred to in paragraph (1) must fulfill at least the following provisions:
a. there is relevance between the type of Alternative Data and the purpose of Alternative Data processing; b. Alternative Data is not confidential data that is not permitted to be shared with third parties in accordance with statutory regulations, unless approval is obtained from the owner of the Alternative Data; and
c. obtained through mechanisms that do not contradict statutory regulations.

(4) Partnerships as referred to in paragraph (1)

letter a must meet the criteria:
a. carried out with parties that are registered, licensed, or equivalent with other competent authorities; b. stipulated in an agreement;
c. included in the business plan; and
d. conducted in accordance with applicable legislation.
(5) The agreement referred to in paragraph (4) letter b must contain at least:
a. the type of Alternative Data used; b. the purpose of collection;
c. the category of data subjects;
d. the processing mechanism; e. the processing duration; f. the mechanism for disclosure, supervision, documentation, audit, and inspection; and g. dispute resolution. (6) PKA must have a mechanism and conduct data verification from data source providers to ensure data accuracy and currency.

Third Section
Processing and Analysis of Alternative Data

Article 30
(1) The processing and analysis of Alternative Data is carried out using methods, models, and/or innovations developed by PKA.
(2) In carrying out the processing and analysis of Alternative Data as referred to in paragraph (1), PKA must ensure at least:
a. the Alternative Data processed by PKA is only used for the purpose of processing and analyzing Alternative Data; b. the quality of Alternative Data used as input in the processing and analysis process;
c. the sufficiency of criteria used in the processing and analysis process; and
d. the sufficiency of methods, models, and/or innovations used in the processing and analysis process.
(3) The Financial Services Authority is authorized to order PKA to provide supporting documents for methods, models, and/or innovations for the processing and analysis of Alternative Data as referred to in paragraph (1). (4) PKA must provide supporting documents as referred to in paragraph (3) within the time limit set by the Financial Services Authority. (5) Regarding the supporting documents as referred to in paragraph (3), the Financial Services Authority is authorized to:
a. request explanations regarding the methods, models, and/or innovations used to process and analyze Alternative Data; b. verify the methods, models, and/or innovations used to process and analyze Alternative Data;
c. request explanations regarding mitigation steps for risks arising from the methods, models, and/or innovations used to process and analyze Alternative Data; and/or
d. request other explanations related to the supporting documents as referred to in paragraph (3).
(6) PKA must:
a. conduct periodic evaluations of the methods, models, and/or innovations used to process Alternative Data; b. formulate procedures regarding periodic evaluation as referred to in letter a; and
c. determine the periodic evaluation timeframe in the procedures as referred to in letter b.
(7) The evaluation conducted by PKA as referred to in paragraph (6) letter a can be conducted independently and/or together with a third party capable of conducting the evaluation.

Article 31
In carrying out activities related to the processing and analysis of Alternative Data, PKA must:
a. maintain the confidentiality, integrity, and availability of Alternative Data processed by PKA until such Alternative Data is destroyed; b. ensure the availability of authentication, verification, and validation processes supporting non-repudiation in accessing, processing, and executing Personal Data and PKA-managed transaction Alternative Data;
c. ensure that the processing of Alternative Data and its source has received approval from the end data owner;
d. provide communication media for Consumers to file complaints; and e. notify PKA Users in writing regarding failures in protecting the confidentiality of Alternative Data processed by PKA.

Article 32
(1) Credit Scores are generated from the methods, models, and/or innovations used to process and analyze Alternative Data.
(2) PKA is prohibited from generating Credit Scores based on Credit Data or Financing obtained directly or indirectly.
(3) The Credit Score generated by PKA as referred to in paragraph (1) must be accountable by PKA.
(4) The Credit Score generated by PKA must meet at least the following criteria:
a. presented in Indonesian, except when required by the Consumer, it may be presented bilingually; b. presented in the form of symbols, letters, colors, and/or numbers; and
c. accompanied by an explanation of the Credit Score.
(5) PKA must encrypt or use other methods for the process and data related to Credit Scores to maintain Consumer data confidentiality.
(6) PKA must implement data retention related to Credit Scores in accordance with applicable legislation.

Fourth Section
Distribution of PKA Business Activity Results

Article 33
(1) The results of PKA business activities as referred to in Article 3 paragraph (1) and paragraph (2) are prohibited from being distributed except to Users.
(2) Users as referred to in paragraph (1) consist of:
a. JFSI; b. Credit Information Management Institutions;
c. Consumers; and/or
d. other parties.
(3) To support financial inclusion programs, PKA may request Consumer demographic data from JFSI that are PKA Users through a cooperation agreement.

Fifth Section
Administrative Sanctions

Article 34
(1) PKA that violates provisions as referred to in Article 29 paragraph (3), paragraph (4), paragraph (6), Article 30 paragraph (2), paragraph (4), paragraph (6), Article 31, Article 32 paragraph (2), paragraph (4), paragraph (5), paragraph (6), Article 33 paragraph (1), shall be subject to administrative sanctions in the form of:
a. written warning; b. temporary suspension, partial or full cessation of activities including the implementation of cooperation;
c. administrative fine, at most Rp1,000,000,000 (one billion rupiah);
d. listing of the Principal Party in the list of persons with bad records in the financial sector; and e. revocation of business license.
(2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, and e may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Violation of Article 28 paragraph (2) shall be subject to sanctions in accordance with applicable legislation regulating personal data protection.

CHAPTER V
SUPERVISION

First Section
Supervision

Article 35
(1) The Financial Services Authority conducts supervision of PKA that have obtained business licenses from the Financial Services Authority.
(2) Supervision as referred to in paragraph (1) includes:
a. indirect supervision; and b. direct supervision.
(3) Indirect supervision as referred to in paragraph (2) letter a is conducted through the analysis of reports, documents, data, and/or other information submitted by PKA. (4) Direct supervision as referred to in paragraph (2) letter b is conducted through examinations of PKA operations. (5) In conducting direct supervision as referred to in paragraph (4), PKA must provide:
a. information and data; b. accounting books;
c. documents;
d. access to physical facilities related to business activities; and/or e. other matters required, upon request by the Financial Services Authority.

Second Section
Annual Business Plan

Article 36
(1) PKA must submit an annual business plan to the Financial Services Authority.
(2) PKA must formulate and present the annual business plan as referred to in paragraph (1) correctly and completely.
(3) The Board of Directors is responsible for the formulation and presentation of the annual business plan as referred to in paragraph (2).
(4) The annual business plan as referred to in paragraph (1) must contain at least:
a. information regarding the increase in technology capacity, infrastructure, and human resources; b. plans to improve business performance;
c. strategies for realizing plans according to established targets and timelines; and
d. reserve of a portion of PKA's profits.
(5) PKA must submit the annual business plan as referred to in paragraph (1) no later than November 10 before the year the annual business plan runs.
(6) If the deadline for submitting the annual business plan falls on a holiday, the submission deadline as referred to in paragraph (5) is on the first working day following. (7) PKA may only change the annual business plan once. (8) Changes to the annual business plan as referred to in paragraph (7) can only be made no later than the end of June of the current year. (9) Changes to the annual business plan as referred to in paragraph (7) must be submitted to the Financial Services Authority at most 30 (thirty) working days before the implementation of the annual business plan change, accompanied by written reasons for the change. (10) The Financial Services Authority is authorized to request PKA to adjust changes to the annual business plan as referred to in paragraph (7). (11) Provisions regarding the procedures and mechanisms for reporting the annual business plan are established by the Financial Services Authority.

Article 37
(1) PKA that submits the annual business plan no later than 20 (twenty) working days after the timeframe as referred to in Article 36 paragraph (5) is declared late in submitting the annual business plan. (2) PKA that does not submit the annual business plan until the end of the timeframe as referred to in paragraph (1) is declared not to have submitted the annual business plan.

Article 38
(1) PKA that violates provisions as referred to in Article 36 paragraph (1), paragraph (2), paragraph (5), paragraph (9), shall be subject to administrative sanctions in the form of:
a. written warning; b. temporary suspension, partial or full cessation of activities including the implementation of cooperation;
c. administrative fine;
d. listing of the Principal Party in the list of persons with bad records in the financial sector; and e. revocation of business license.
(2) PKA that does not meet the provisions as referred to in Article 36 paragraph (5) shall be subject to administrative sanctions in the form of a fine of Rp1,000,000.00 (one million rupiah) per day of delay per report. (3) PKA that does not submit the annual business plan after the final submission deadline as referred to in Article 37 paragraph (2) shall be subject to administrative sanctions in the form of a fine of Rp30,000,000.00 (thirty million rupiah). (4) Administrative sanctions as referred to in paragraph (1) letters b, c, d, and e may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (5) The imposition of administrative sanctions as referred to in paragraph (3) does not eliminate the obligation to submit the annual business plan for PKA that did not submit the annual business plan.

Third Section
Reporting

Article 39
(1) PKA must submit:
a. periodic reports; and b. incidental reports, to the Financial Services Authority.
(2) The Financial Services Authority is authorized to request reports other than those referred to in paragraph (1).
(3) PKA must formulate and present reports as referred to in paragraph (1) and paragraph (2) correctly and completely.
(4) The Board of Directors is responsible for the formulation and presentation of PKA reports as referred to in paragraph (3).

Article 40
(1) Periodic reports as referred to in Article 39 paragraph (1) letter a consist of:
a. monthly reports; b. semi-annual reports; and
c. annual reports.
(2) Monthly reports as referred to in paragraph (1) letter a must contain at least:
a. financial data; and b. other information.
(3) Semi-annual reports as referred to in paragraph (1) letter b must contain at least:
a. reports on the realization of the annual business plan; and b. the application of risk management and prudence.
(4) Annual reports as referred to in paragraph (1) letter c must contain at least:
a. annual financial reports audited by a public accountant registered with the Financial Services Authority; and b. governance reports.
(5) The submission of periodic reports to the Financial Services Authority as referred to in paragraph (1) must be carried out as follows:
a. monthly reports as referred to in paragraph (1) letter a are submitted no later than 10 (ten) working days after the reporting period ends; b. semi-annual reports as referred to in paragraph (1) letter b are submitted no later than July 31 of the current year for the first semester and January 31 of the following year for the second semester; and
c. annual reports as referred to in paragraph (1) letter c are submitted no later than April 30 of the following year.
(6) If the report submission deadline falls on a holiday, the submission deadline as referred to in paragraph (5) is on the first working day following.

Article 41
The submission of incidental reports as referred to in Article 39 paragraph (1) letter b must be submitted no later than 5 (five) working days since the incident occurred.

Article 42
Other reports as referred to in Article 39 paragraph (2) must be submitted to the Financial Services Authority within the timeframe established in the request letter.

Article 43
(1) PKA that submits reports no later than 20 (twenty) working days after the timeframe as referred to in Article 40 paragraph (5) and Article 41 is declared late in submitting reports. (2) PKA that does not submit reports until the end of the timeframe as referred to in paragraph (1) is declared not to have submitted reports. (3) Provisions regarding the procedures and mechanisms for reporting are established by the Financial Services Authority.

Article 44
(1) PKA that violates provisions as referred to in Article 39 paragraph (1), paragraph (3), Article 40 paragraph (5), Article 41, and Article 42, shall be subject to administrative sanctions in the form of:
a. written warning; b. temporary suspension, partial or full cessation of activities including the implementation of cooperation;
c. administrative fine;
d. listing of the Principal Party in the list of persons with bad records in the financial sector; and e. revocation of business license.
(2) PKA that does not meet the provisions as referred to in Article 40 paragraph (5) letter a shall be subject to administrative sanctions in the form of a fine of Rp50,000.00 (fifty thousand rupiah) per day of delay per report. (3) PKA that does not submit monthly reports after the final submission deadline after the timeframe as referred to in Article 43 paragraph (2) shall be subject to administrative sanctions in the form of a fine of Rp5,000,000.00 (five million rupiah). (4) PKA that does not meet the provisions as referred to in Article 40 paragraph (5) letter b shall be subject to administrative sanctions in the form of a fine of Rp500,000.00 (five hundred thousand rupiah) per day of delay per report. (5) PKA that does not submit semi-annual reports after the final submission deadline after the timeframe as referred to in Article 43 paragraph (2) shall be subject to administrative sanctions in the form of a fine of Rp30,000,000.00 (thirty million rupiah). (6) PKA that does not meet the provisions as referred to in Article 40 paragraph (5) letter c shall be subject to administrative sanctions in the form of a fine of Rp1,000,000.00 (one million rupiah) per day of delay per report. (7) PKA that does not submit annual reports after the final submission deadline after the timeframe as referred to in Article 43 paragraph (2) shall be subject to administrative sanctions in the form of a fine of Rp30,000,000.00 (thirty million rupiah). (8) PKA that does not meet the provisions as referred to in Article 41 shall be subject to administrative sanctions in the form of a fine of Rp200,000.00 (two hundred thousand rupiah) per day of delay per report. (9) PKA that does not submit incidental reports after the final submission deadline after the timeframe as referred to in Article 43 paragraph (2) shall be subject to administrative sanctions in the form of a fine of Rp1,000,000.00 (one million rupiah). (10) Administrative sanctions as referred to in paragraph (1) letters b, c, d, and e may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (11) The imposition of administrative sanctions as referred to in paragraph (3), (5), (7), and (9) does not eliminate the obligation to submit reports for PKA that has not submitted the aforementioned reports.

CHAPTER VI
CESSATION OF ACTIVITIES AND REVOCATION OF BUSINESS LICENSE

Article 45
(1) PKA that intends to cease business activities must submit a written application for cessation of business activities to the Financial Services Authority by attaching documents:
a. minutes of the General Meeting of Shareholders regarding the plan to cease business activities; b. reasons for cessation;
c. plan to settle all obligations; and
d. latest financial report.
(2) The minutes of the General Meeting of Shareholders as referred to in paragraph (1) letter a must contain at least decisions approving the plan to cease business activities and orders to the Board of Directors to settle PKA's obligations. (3) Based on the application as referred to in paragraph (1), the Financial Services Authority issues a cessation of business activities letter that obligates PKA:
a. to cease all business activities as PKA; b. to announce the cessation of business activities as PKA and the plan to settle obligations in 1 (one) national daily newspaper, PKA's official portal or website, and PKA's official social media accounts no later than 10 (ten) working days since the date of issuance of the cessation of business activities letter;
c. to immediately settle all PKA obligations; and
d. to appoint a public accounting firm to verify the settlement of PKA obligations.
(4) In the event that all PKA obligations as referred to in paragraph (3) have been settled, PKA submits a written application for revocation of business license to the Financial Services Authority accompanied by a report containing at least:
a. implementation of cessation of business activities; b. implementation of announcement of cessation of business activities as PKA;
c. implementation of settlement of PKA obligations;
d. verification result report from the public accounting firm regarding the settlement of PKA obligations; and e. statement letter from shareholders that the steps to settle PKA obligations have been completed and if there are claims in the future, they become the responsibility of the shareholders. (5) Based on the application for revocation of business license as referred to in paragraph (4), the Financial Services Authority revokes the PKA business license. (6) If there are PKA obligations that have not been settled after the date of the PKA business license revocation decision, all PKA obligations become the responsibility of the PKA shareholders.

Article 46
(1) The Financial Services Authority is authorized to revoke the business license that has been issued by issuing a revocation decision, in the event:
a. PKA violates provisions in this Financial Services Authority Regulation with sanctions in the form of revocation of business license; and/or b. there is a court decision that has acquired permanent legal force. (2) If there are PKA obligations that have not been settled after the date of the PKA business license revocation decision, all PKA obligations become the responsibility of the PKA shareholders.

CHAPTER VII
OTHER COMPLIANCE ASPECTS

Article 47
(1) PKA must apply Consumer protection principles in the conduct of business.
(2) The mechanism and procedures for the application of Consumer protection principles as referred to in paragraph (1) are carried out in accordance with applicable legislation regarding consumer and community protection in the financial services sector.

Article 48
(1) PKA must formulate and apply an effective anti-fraud strategy.
(2) The formulation and application of the anti-fraud strategy as referred to in paragraph (1) are carried out in accordance with Financial Services Authority Regulations regarding the application of anti-fraud strategies for financial service institutions.

Article 49
In addition to meeting the provisions in this Financial Services Authority Regulation, PKA that has obtained a business license from the Financial Services Authority must meet other applicable legislation provisions.

Article 50
(1) PKA that violates provisions as referred to in Article 49 shall be subject to administrative sanctions in the form of:
a. written warning; b. temporary suspension, partial or full cessation of activities including the implementation of cooperation;
c. administrative fine, at most Rp1,000,000,000 (one billion rupiah);
d. listing of the Principal Party in the list of persons with bad records in the financial sector; and e. revocation of business license.
(2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, and e may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Violation of consumer and community protection provisions in the financial services sector as referred to in Article 47 shall be subject to administrative sanctions in accordance with Financial Services Authority Regulations regarding consumer and community protection in the financial services sector. (4) Violation of anti-fraud strategy application provisions as referred to in Article 48 shall be subject to administrative sanctions in accordance with Financial Services Authority Regulations regarding the application of anti-fraud strategies for FSI.

CHAPTER VIII
OTHER PROVISIONS

Article 51
The Financial Services Authority is authorized to issue written orders to PKA with procedures in accordance with Financial Services Authority Regulations regarding written orders.

Article 52
The Financial Services Authority may establish different policies based on certain considerations regarding the supervision and implementation of PKA business activities other than those regulated in this Financial Services Authority Regulation.

CHAPTER IX
TRANSITIONAL PROVISIONS

Article 53
(1) Innovative Credit Scoring providers that are already registered with the Financial Services Authority must apply for a business license in accordance with the provisions of this Financial Services Authority Regulation no later than 12 (twelve) months since this Financial Services Authority Regulation comes into force. (2) In the event that Innovative Credit Scoring providers do not apply for a business license within the timeframe of no later than 12 (twelve) months as referred to in paragraph (1), the Innovative Credit Scoring providers are declared as PKA without a business license from the Financial Services Authority. (3) Innovative Credit Scoring providers as referred to in paragraph (2) must cease business activities

business and fulfill obligations to the User Party within a maximum of 6 (six) months from the date the business activity is declared unlicensed and not supervised by the Financial Services Authority. (4) In the event that an Innovative Credit Scoring organizer has obtained a business license, the certificate of registration becomes invalid.

Article 54
(1) Innovative Credit Scoring organizers who are in the process of registration and have not obtained a registration certificate when this Financial Services Authority Regulation comes into force, shall continue the registration process. (2) The registration process for Innovative Credit Scoring organizers as referred to in paragraph (1) does not reduce the time limit for submitting a business license application as referred to in Article 53 paragraph (1). (3) Innovative Credit Scoring organizers who have obtained registered status and conducted business activities as referred to in Article 3 paragraph (2) before this Financial Services Authority Regulation comes into force, shall continue to conduct activities without needing approval from the Financial Services Authority. (4) When this Financial Services Authority Regulation comes into force, registered Innovative Credit Scoring organizers who have conducted business activities involving other processing that utilizes Alternative Data to provide added value to User Parties as referred to in Article 3 paragraph (2) must submit data and information regarding such business activities when applying for a business license. (5) When this Financial Services Authority Regulation comes into force, Innovative Credit Scoring organizers who have obtained registered status and possess a registration certificate for Electronic System organizers in accordance with PKA business activities, are exempted from the provisions regarding the registration of Electronic System organizers as referred to in Article 12. (6) When this Financial Services Authority Regulation comes into force, Innovative Credit Scoring organizers who have obtained registered status and have a percentage of share ownership by foreign citizens and/or foreign legal entities exceeding the percentage as referred to in Article 5 paragraph (2) must adjust to the maximum share ownership limit within a maximum period of 1 (one) year after obtaining a business license.

Article 55
Any party outside of PKA who has conducted PKA activities before the entry into force of this Financial Services Authority Regulation is required to apply for a business license in accordance with the provisions of this Financial Services Authority Regulation within a maximum of 12 (twelve) months from the date this Financial Services Authority Regulation comes into force.

CHAPTER X
FINAL PROVISIONS

Article 56
The provisions in this Financial Services Authority Regulation do not apply to the processing of Alternative Data conducted independently by and solely for the interest of the Financial Institution (LJK) itself.

Article 57
This Financial Services Authority Regulation comes into force on 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

To ensure that everyone knows it, order the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on December 18, 2024
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

Promulgated in Jakarta on December 20, 2024
MINISTER OF LAW OF THE REPUBLIC OF INDONESIA, signed SUPRATMAN ANDI AGTAS

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2024 NO. 41/OJK https://jdih.ojk.go.id/

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 29 OF 2024
CONCERNING
ALTERNATIVE CREDIT SCORING

I. GENERAL
Financial inclusion plays an important role in inclusive economic growth. Ease of access to finance for the public, especially in the micro, small, and medium enterprise sector, can drive productive economic activities, so that information technology, in this case, plays an important role in expanding financial inclusion. Access to these financial services is expected to be able to drive capital ownership and encourage business through access to financing. One form of technology utilization in expanding financial inclusion can be implemented through the utilization of PKA. PKA plays a role in creditworthiness assessment based on relevant Alternative Data in order to provide services to a wider segment of society, including people who do not have a credit history or have limited credit history. This alternative data can include telecommunications, utility, and e-commerce data which, in terms of the percentage of missing data, is lower compared to historical credit data and its derivatives, as well as innovative methods.

Although the development of technology-based financial services is expected to overcome the financial inclusion gap problem, on the other hand, PKA can bring several risks such as Personal Data protection, cyber, and Consumer protection. Therefore, it is important to formulate a regulatory framework for PKA to ensure safe and responsible business practices.

In addition, Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK) has also granted authority to the Financial Services Authority to regulate and supervise activities in the ITSF sector as well as digital financial assets and crypto assets. One of the scope of ITSF as regulated by UU P2SK is market support, where one example of ITSF included in the scope of market support is Innovative Credit Scoring (ICS) or PKA.

Through the Financial Services Authority Regulation on Alternative Credit Scoring, it is hoped that legal certainty can be provided for the regulation and supervision of PKA activities. In addition, this regulatory framework is expected to maintain a balance between supporting the development of innovation from PKA and ensuring that the use of Alternative Data becomes safer. This regulation also regulates principles and scope, institutional aspects, governance, PKA implementation, supervision, as well as cessation of activities and revocation of business licenses.

II. ARTICLE BY ARTICLE EXPLANATION

Article 1
Clear enough.

Article 2
Letter a
Utilization of technology innovation support includes, among others, machine learning algorithms.

Letter b

1. What is meant by "transparent" is that PKA can explain the way data processing works in providing services to PKA User Parties, from input to the output generated. This is necessary to increase transparency and determine the accountability of the parties.
2. What is meant by "fair" is equality, balance, and justice by ensuring that PKA activities developed and utilized do not cause losses to Consumers, including not violating privacy and not causing discrimination resulting from the ignorance of the parties regarding processing.
3. What is meant by "accountable" is accountability for the validity and accuracy of data and methods used to generate output that does not cause losses to User Parties.
4. What is meant by "not misleading" is that PKA provides clear information and does not cause confusion for User Parties.

Letter c
Personal Data protection principles in accordance with provisions of legislation related to personal data protection.

Letter d
Clear enough.

Letter e
Clear enough.

Letter f
Clear enough.

Article 3
Paragraph (1)
Clear enough.

Paragraph (2)
Other processing that utilizes Alternative Data that has added value includes information in the form of fraud indication warnings, individual profile mapping, as well as individual monitoring and evaluation.

Paragraph (3)
Clear enough.

Article 4
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Certain considerations are based, among others, on the establishment of PKA as a result of PKA merger, or adjustment of paid-up capital to strengthen or improve PKA operations.

Paragraph (5)
Letter a
Clear enough.

Letter b
What is meant by loan is a money loan that causes the borrower to have an obligation to return a certain amount. Examples:

1. loans from banks;
2. loans from business entities and/or institutions; and
3. loans from other sources.

Letter c
Examples of other activities that contradict the provisions of legislation include activities that contradict provisions of legislation regarding the eradication of criminal acts of corruption.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Article 5
Clear enough.

Article 6
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Letter a
Certification is issued by a credible/responsible body/institution/association. Examples of required certifications include: Certified Information Systems Security Professional (CISSP), Certified Information Security Manager (CISM), Certified Information Systems Auditor (CISA), or Certified Data Privacy Solutions Engineer (CDPSE).

Letter b
Clear enough.

Paragraph (4)
Clear enough.

Article 7
Paragraph (1)
What is meant by "foreign labor" is:
a. foreign labor other than foreign labor holding positions as Directors and/or Board of Commissioners; and b. foreign citizens holding visas for the purpose of working in the territory of the Republic of Indonesia.

Letter a
What is meant by "expert or consultant" is an individual who has specific technical knowledge with adequate qualification standards.

Letter b
Clear enough.

Letter c
Expertise according to the field of duty includes, among others, ability in the field of Credit Score models, networks, Electronic System security, and programming.

Letter d
Provisions of legislation include, among others, laws regarding immigration, use of foreign labor, and labor.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Article 8
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
The submission of reports on the use of foreign labor is carried out through incidental reports.
Documents related to labor include, among others, permits to use foreign labor.

Article 9
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Operational readiness research including the information technology systems used includes, among others, conducting inspections at the prospective PKA office.

Letter d
Other analyses based on Financial Services Authority considerations include information and/or documents from other authorities related to the applicant and/or the application submitted.

Paragraph (4)
International standard certifications related to information management systems are currently known as ISO 27001 certificates issued by certification bodies recognized by government agencies handling information security affairs.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Certain considerations, among others, to deepen the legality of the use of information technology systems, the Financial Services Authority requests documents of Cooperation Agreements related to the use of information technology systems.

Paragraph (8)
What is meant by "from the date" is that the time calculation starts from the specified date.
Example: if the notification from the Financial Services Authority is on January 5, 2025, then that date is calculated.

Paragraph (9)
Clear enough.

Paragraph (10)
Clear enough.

Article 10
Clear enough.

Article 11
Paragraph (1)
Clear enough.

Paragraph (2)
Provisions of legislation regulating written orders include, among others, the Law on the Financial Services Authority and Financial Services Authority Regulations regarding written orders.

Article 12
Paragraph (1)
Clear enough.

Paragraph (2)
See explanation of Article 9 paragraph (8).

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Paragraph (8)
Certain considerations from the Financial Services Authority in extending the time limit include, among others, force majeure conditions. Examples of force majeure conditions include natural disasters.

Paragraph (9)
Clear enough.

Article 13
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
What is meant by "Controlling Principal Party" is the PKA PSP.

Letter b
What is meant by "Managing Principal Party" is members of the Board of Directors, members of the Board of Commissioners.

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.

Article 14
Paragraph (1)
Letter a
Number 1
See Explanation of Article 13 paragraph (2) letter a.

Number 2
See Explanation of Article 13 paragraph (2) letter b.

Letter b
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Examples of other information:
Information regarding the track record of Principal Parties obtained from other authorities.

Paragraph (6)
Clear enough.

Paragraph (7)
Certain considerations include conditions deemed to cause PKA to potentially experience difficulties that can endanger the continuity of PKA business and/or threaten financial system stability.

Paragraph (8)
Clear enough.

Article 15
Paragraph (1)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Example:
The Controlling Principal Party does not execute the Financial Services Authority's order to increase paid-up capital in order to strengthen PKA's information security system.

Letter e
Clear enough.

Letter f
Clear enough.

Letter g
Clear enough.

Letter h
Clear enough.

Letter i
Number 1
Efforts and implementation of Financial Services Authority authority include, among others:
a. written orders given by the Financial Services Authority to PKA and/or Principal Parties in handling PKA problems; and/or b. follow-up handling of PKA problems in connection with violations of other authority regulations by PKA.

Number 2
Other parties include prospective PKA Principal Parties who will carry out efforts to handle PKA problems.

Letter j
Integrity and/or financial feasibility problems include Controlling Principal Parties of PKA declared to have failed as principal parties at LJK in accordance with Financial Services Authority regulations regarding re-evaluation for LJK principal parties.

Paragraph (2)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Clear enough.

Letter f
Clear enough.

Letter g
Clear enough.

Letter h
Clear enough.

Letter i
Clear enough.

Letter j
Examples of integrity, financial reputation, and/or competence problems include PKA commissioners declared to have failed as principal parties at LJK in accordance with Financial Services Authority regulations regarding re-evaluation for LJK principal parties.

Article 16
Clear enough.

Article 17
Clear enough.

Article 18
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Clear enough.

Letter b
See explanation of Article 4 paragraph (5) letter b.

Letter c
See explanation of Article 4 paragraph (5) letter c.

Article 19
Paragraph (1)
Letter a
Supporting documents include, among others, minutes of the General Meeting of Shareholders, minutes of the Board of Directors meeting and/or other documents in accordance with provisions of legislation.

Letter b
Clear enough.

Paragraph (2)
Provisions of legislation include, among others, the Law on Limited Liability Companies.

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 20
Clear enough.

Article 21
Clear enough.

Article 22
Paragraph (1)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
What is meant by "list of reputable persons" is a list of persons who have failed based on the mechanism and procedures for re-evaluation of Principal Parties.

Letter e
Clear enough.

Paragraph (2)
Clear enough.

Article 23
Paragraph (1)
What is meant by "good governance" is a way of managing PKA that applies principles of openness (transparency), accountability (accountability), responsibility (responsibility), independence (independency), and fairness (fairness).

Paragraph (2)
Letter a
Clear enough.

Letter b
Risk management implementation refers to Financial Services Authority Regulations regarding the implementation of ITSF.

Letter c
Handling conflicts of interest includes, among others, ensuring that decisions by the Board of Directors and/or Board of Commissioners of PKA are based solely on the interests of the PKA business activity concerned.

Letter d
Clear enough.

Letter e
Transparency includes, among others, disclosure aspects and the form of PKA's accountability for the utilization of Consumer data.

Letter f
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Article 24
Clear enough.

Article 25
Paragraph (1)
Third-party services related to Electronic Systems can be used in the procurement, maintenance, and development processes.
The use of services related to Electronic Systems that are non-critical (supporting) includes, among others, system reliability testing and data management security, helpdesk services, and Consumer complaint services.

Paragraph (2)
Clear enough.

Article 26
Paragraph (1)
Audit track records of all PKA activities include, among others, the use of Alternative Data in Credit Score processing, clear identification of Consumer data flow used for processing, verification of Alternative Data types, and ensuring the accuracy of Alternative Data used.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Article 27
Paragraph (1)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
See explanation of Article 22 paragraph (1) letter d.

Letter e
Clear enough.

Paragraph (2)
Clear enough.

Article 28
Paragraph (1)
Clear enough.

Paragraph (2)
Provisions of legislation include, among others, provisions of legislation regarding electronic information and transactions and Personal Data protection.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Article 29
Paragraph (1)
Clear enough.

Paragraph (2)
Examples of other sources of Alternative Data obtained without partnership include social media data.

Paragraph (3)
Letter a
Clear enough.

Letter b
Provisions of legislation include, among others, provisions of legislation regarding personal data protection.

Letter c
See explanation of letter b.

Paragraph (4)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
See explanation of paragraph (3) letter b.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Article 30
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Supporting documents for methods, models, and/or innovations used in the Alternative Data processing process can be in the form of work procedures, technical policies, or other related documents.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Article 31
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
End data owners include Debtors or Customers.

Letter d
Communication media include, among others, electronic mail, call centers, or other communication media.

Letter e
Clear enough.

Article 32
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Explanation can be in the form of reasons and/or documents proving the accuracy of the Credit Score.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Article 33
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Other parties include:

1. law enforcement agencies and/or public agencies for the implementation of duties in accordance with provisions of legislation; and
2. parties who do not have a credit history or have limited credit history.

Paragraph (3)
Clear enough.

Article 34
Paragraph (1)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
See explanation of Article 22 paragraph (1) letter d.

Letter e
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Article 35
Paragraph (1)
Clear enough.

Paragraph (2)
Indirect supervision and direct supervision are carried out by considering the PKA risk management aspect as an ITSF Organizer.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Article 36
Paragraph (1)
What is meant by "annual business plan" is a written document describing the short-term (1 (one) year) and medium-term (3 (three) years) business activity plans of PKA.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
What is meant by "partial PKA profit reservation" is the setting aside of profit balances in the form of funds prepared by PKA for the improvement of technology capacity, infrastructure, human resources, and receiving Director approval through supporting documents.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Paragraph (8)
Clear enough.

Paragraph (9)
Clear enough.

Paragraph (10)
Clear enough.

Paragraph (11)
Clear enough.

Article 37
Clear enough.

Article 38
Paragraph (1)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
See explanation of Article 22 paragraph (1) letter d.

Letter e
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Article 39
Paragraph (1)
Letter a
Clear enough.

Letter b
Incidental reports include, among others:

1. reports related to changes in business activities, including changes in products and/or activities related to business models or partnerships;
2. reports related to institutional matters, including changes in share ownership, management, office addresses, articles of association/statutes;
3. reports related to incidents, including fraud, force majeure, legal disputes, and/or cyber attacks; and
4. other reports requested by the Financial Services Authority under certain conditions.

Paragraph (2)
Other reports besides incidental reports can include maturity assessments of the PKA platform.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Article 40
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Clear enough.

Letter b
Other information can include PKA profiles, shareholder structure, activity reports, and operational reports.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Article 41
Clear enough.

Article 42
Clear enough.

Article 43
Clear enough.

Article 44
Paragraph (1)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
See explanation of Article 22 paragraph (1) letter d.

Letter e
Clear enough.

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.

Paragraph (11)
Clear enough.

Article 45
Clear enough.

Article 46
Clear enough.

Article 47
Clear enough.

Article 48
Clear enough.

Article 49
Other provisions of legislation include, among others, provisions related to ITSF Organizer associations, immigration, and taxation.

Article 50
Clear enough.

Article 51
Clear enough.

Article 52
Clear enough.

Article 53
Paragraph (1)
What is meant by "Innovative Credit Scoring organizer" is a party conducting PKA activities before the entry into force of this Financial Services Authority Regulation.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Article 54
Clear enough.

Article 55
Clear enough.

Article 56
Clear enough.

Article 57
Clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 109/OJK

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 29 OF 2024
ON
ALTERNATIVE CREDIT SCORING

PART A
DOCUMENT REQUIREMENTS FOR BUSINESS LICENSE APPLICATION AS A PKA

This part covers the document requirements needed to submit an application for obtaining a business license as a PKA.

1. The document requirements for the business license application as a PKA include:

a. application form for business license as stated in Appendix Part B; b. letter of introduction for PKA business license application as stated in Appendix Part C;
c. copy of the articles of incorporation of the legal entity that has been approved by the competent authority containing business activities as determined by the Financial Services Authority (OJK);
d. copy of the latest amended articles of association that has been approved by the competent authority containing business activities as determined by the Financial Services Authority (OJK), if the legal entity has amended its articles of association; e. copy of the latest amended corporate data articles that have been reported to the competent authority if the legal entity has changed corporate data; f. shareholder data:

1. for individual shareholders, by attaching Electronic Documents or scanned copies of:
   a) identification in the form of an Indonesian citizen's ID card or a passport for foreign citizens, which is still valid; b. Taxpayer Identification Number (NPWP) or documents that can be equated with it;
   c. a resume completed with a recent 4x6 cm color photo according to the Resume Format as stated in Appendix Part D which is an integral part of this Financial Services Authority Regulation; and
   d. a statement from the shareholder according to the Individual Shareholder Statement Format as stated in Appendix Part E which is an integral part of this Financial Services Authority Regulation;
2. for corporate shareholders, by attaching Electronic Documents or scanned copies of:
   a. a list and details of shareholders along with details of each share ownership; b. copy of the articles of incorporation of the legal entity that has been approved by the competent authority;
   c. copy of the latest amended articles of association that has been approved by the competent authority, if the legal entity has amended its articles of association;
   d. copy of the latest amended corporate data articles that have been reported to the competent authority if the legal entity has changed corporate data; e. a statement from the shareholder according to the Corporate Shareholder Statement Format as stated in Appendix Part F which is an integral part of this Financial Services Authority Regulation; and f. Taxpayer Identification Number (NPWP) of the legal entity or documents that can be equated with it. g. for members of the Board of Directors, by attaching Electronic Documents or scanned copies of data:
3. identification in the form of an Indonesian citizen's ID card or a passport for foreign citizens, which is still valid;
4. Limited Stay Permit Card or Permanent Stay Permit Card for foreign citizens;
5. a resume completed with a recent 4x6 cm color photo as stated in Appendix Part D which is an integral part of this Financial Services Authority Regulation;
6. Taxpayer Identification Number (NPWP) or documents that can be equated with it; and
7. a statement from each member of the Board of Directors according to the Board Member Statement Format as stated in Appendix Part G which is an integral part of this Financial Services Authority Regulation;
   h. for the Board of Commissioners, by attaching Electronic Documents or scanned copies of data:
8. identification in the form of an Indonesian citizen's ID card or a passport for foreign citizens, which is still valid;
9. a resume completed with a recent 4x6 cm color photo as stated in Appendix Part D which is an integral part of this Financial Services Authority Regulation;
10. Taxpayer Identification Number (NPWP) or documents that can be equated with it; and
11. a statement from each Commissioner according to the Board of Commissioners Member Statement Format as stated in Appendix Part H which is an integral part of this Financial Services Authority Regulation;
    i. information regarding the PKA Provider (PSP) containing at least:
12. information related to the PSP;
13. the amount (percentage) of PSP ownership; and
14. a statement from the PSP according to the PSP Statement Format as stated in Appendix Part I which is an integral part of this Financial Services Authority Regulation;
    j. organizational structure of the prospective PKA containing information regarding:
15. structure and/or job functions;
16. number of human resources in each structure and/or job function; and
17. division of duties and authority of each structure and/or job function.
    k. annual business plan for the first 3 (three) years containing at least:
18. a description of the business activities to be carried out;
19. targets and steps taken to achieve the aforementioned targets;
20. financial report projections for 3 (three) years ahead; and
21. plan for the use of foreign workers;
    l. proof of expertise and/or background of human resources in the field of credit scoring, information technology, and/or LJK owned by at least 1 (one) employee, proven by certification or work experience of at least 3 (three) years;
    m. document of data and information related to the business model containing at least:
22. business model and process;
23. methodology used in generating Credit Scores;
24. benefits of products, services, and/or innovations offered (value proposition);
25. target market served and Consumer profile;
26. revenue structure and costs charged to Users (fee);
27. explanation regarding data flow diagrams and types of data involved;
28. data management mechanism starting from the process of collection, processing, storage, and distribution of data;
29. output of products, services, and/or innovations provided;
30. strategy and/or implementation of risk management;
31. data and information related to Consumer protection policies and procedures including policies and procedures for handling Consumer complaints; and
32. methodology and technology used in the service provision process;
    n. website and/or device-based application accessible by partners and/or Users accompanied by a model or visual presentation of the product design in the form of screenshots for the company profile section, product information, and call center; o. proof that data centers and disaster recovery centers are located within Indonesian territory; p. cooperation agreements with data center and disaster recovery center providers; q. policies and procedures for Personal Data protection; r. proof of readiness of Electronic Systems and data of prospective PKA operational activities according to the Format of Readiness of Electronic System Infrastructure and Operational Activity Data as stated in Appendix Part J which is an integral part of this Financial Services Authority Regulation; s. guidelines for the internal control system and guidelines regarding the implementation of PKA governance; t. operational policies and procedures containing at least:
33. data security activity steps;
34. access levels;
35. data modification procedures;
36. information security;
37. business continuity plan;
38. end-user computing;
39. disaster recovery plan;
40. data retention;
41. monitoring of operations including audit trails;

10. proof of concept implementation procedures;
11. credit score provision procedures; and
12. complaint handling and resolution procedures; and
13. Personal Data protection policies and procedures;
14. guidelines for the internal control system and guidelines regarding the implementation of PKA governance;
    u. proof that paid-in capital has been paid in cash, in full, and placed in the name of the prospective PKA at a general bank, sharia general bank, or sharia business unit of a general bank in Indonesia;
    v. a statement letter from prospective shareholders, that the capital contribution does not come from:

1. money laundering, terrorism financing, and weapons of mass destruction proliferation financing activities;
2. lending activities; and/or
3. other activities that contradict the provisions of legislation; and
   w. architecture of the information technology system to be used.
   x. proof of operational readiness in the form of:
4. proof of ownership or control of office buildings, office rooms, or service units, in the form of photocopies of ownership certificates, building use rights, use rights, or agreements for the use of buildings or rooms within a certain time limit; and
5. a list of office inventory and equipment.

PART B
PKA Business License Application Form

PKA Company Name :
Application Letter Number :
Date of Application Letter :
Brief Description of Business Activities of the Organizer :
Contact Person (Name, Phone/email) :
No. DESCRIPTION INFORMATION

1. Copy of the articles of incorporation of the legal entity that has been approved by the competent authority containing business activities as determined by the Financial Services Authority (OJK)
2. Copy of the latest amended articles of association that has been approved by the competent authority containing business activities as determined by the Financial Services Authority (OJK), if the legal entity has amended its articles of association
3. Shareholder data for individual shareholders, by attaching Electronic Documents or scanned copies of:
   1. identification in the form of an Indonesian citizen's ID card or a passport for foreign citizens, which is still valid
   2. Taxpayer Identification Number (NPWP)/documents that can be equated with it;
   3. a resume completed with a recent 4x6 cm color photo;
   4. a statement from the shareholder according to the Individual Shareholder Statement Format
      for corporate shareholders, by attaching Electronic Documents or scanned copies of:
   5. a list and details of shareholders along with details of each share ownership;
   6. copy of the articles of incorporation of the legal entity that has been approved by the competent authority;
   7. copy of the latest amended articles of association that has been approved by the competent authority, if the legal entity has amended its articles of association;
   8. a statement from the shareholder according to the Corporate Shareholder Statement Format
   9. Taxpayer Identification Number (NPWP) of the legal entity/documents that can be equated with it.
4. Board of Directors Data
   1. identification in the form of an Indonesian citizen's ID card or a passport for foreign citizens, which is still valid
   2. Limited Stay Permit Card or Permanent Stay Permit Card for foreign citizens;
   3. a resume completed with a recent 4x6 cm color photo
   4. Taxpayer Identification Number (NPWP)/documents that can be equated with it
   5. a statement from each member of the Board of Directors according to the Board Member Statement Format
5. Board of Commissioners
   1. identification in the form of an Indonesian citizen's ID card or a passport for foreign citizens, which is still valid;
   2. a resume completed with a recent 4x6 cm color photo
   3. Taxpayer Identification Number (NPWP)/documents that can be equated with it
   4. a statement from each Commissioner according to the Board of Commissioners Member Statement Format
6. Information regarding PSP
   1. information related to the PSP;
   2. the amount (percentage) of PSP ownership;
   3. a statement from the PSP according to the PSP Statement Format
7. Organizational structure
   1. structure and/or job functions
   2. number of human resources in each structure and/or job function
   3. division of duties and authority of each structure and/or job function
8. Annual business plan for the first 3 (three) years
   1. a description of the business activities to be carried out
   2. targets and steps taken to achieve the aforementioned targets
   3. financial report projections for 3 (three) years ahead
   4. plan for the use of foreign workers
9. Proof of expertise and/or background of human resources in the field of information technology, and/or LJK including certification or work experience in the field of information technology for at least 3 years
10. Document of data and information related to the business model
    1. business model and process;
    2. methodology used in generating Credit Scores.
    3. benefits of products, services, and/or innovations offered (value proposition);
    4. target market served and Consumer profile;
    5. revenue structure and costs charged to Users (fee);
    6. explanation regarding data flow diagrams and types of data involved;
    7. data management mechanism starting from the process of collection, processing, storage, and distribution of data;
    8. output of products, services, and/or innovations provided;
    9. strategy and/or implementation of risk management;
    10. data and information related to Consumer protection policies and procedures including policies and procedures for handling Consumer complaints; and
    11. methodology and technology used in the service provision process;
11. Website and/or device-based application accessible by partners and/or Users accompanied by a mock-up in the form of screenshots for the company profile section, product information, and call center (call center);
12. Proof that data centers and disaster recovery centers are located within Indonesian territory
13. Cooperation agreements with data center and disaster recovery center providers
14. Documents related to information security management systems
    1. ISO 27001 certificate issued by a certification body that has accreditation from the National Accreditation Committee (KAN) or a certification body that has the authority to issue ISO 27001 certificates (for certification bodies that do not have KAN accreditation); or
    2. certification or other documents containing policies related to information system security containing control mechanisms on:
       a. organizational aspects, containing at least delegation of authority and organizational structure; b. human resource aspects, containing at least fulfillment of human resources in positions related to information technology and credit scoring, minimum competency requirements, and policies/strategies for human resource competency development (certification/training);
       c. physical device aspects, containing at least policies of prospective PKA Organizers regarding IT physical devices being available and safe; and
       d. technology aspects, containing at least network, application, and data security
15. Personal Data protection policies and procedures
16. Proof of readiness of Electronic Systems and data of prospective PKA Organizers according to the Format of Readiness of Electronic System Infrastructure and Operational Activity Data
17. Guidelines for the internal control system and guidelines regarding the implementation of PKA governance
18. Operational policies and procedures
    1. data security activity steps;
    2. access levels;
    3. data modification procedures;
    4. information security;
    5. business continuity plan;
    6. end-user computing;
    7. disaster recovery plan;
    8. data retention;
    9. monitoring of operations including audit trails;
    10. proof of concept implementation procedures;
    11. credit score provision procedures; and
    12. complaint handling and resolution procedures; and
    13. Personal Data protection policies and procedures;
        guidelines for the internal control system and guidelines regarding the implementation of PKA governance
19. Proof that paid-in capital has been paid in cash, in full, and placed in the name of the prospective PKA at a General Bank, Sharia General Bank, or Sharia Business Unit of a General Bank in Indonesia
20. Statement letter from prospective shareholders, that the capital contribution does not come from:
    a. money laundering, terrorism financing, and weapons of mass destruction proliferation financing activities; b. lending activities; and/or
    c. other activities that contradict the provisions of legislation;
21. Architecture of the information technology system to be used
22. Proof of operational readiness
    1. proof of ownership or control of office buildings, office rooms, or service units, in the form of photocopies of ownership certificates, building use rights, use rights, or agreements for the use of buildings or rooms within a certain time limit; and
    2. a list of office inventory and equipment.

We, the undersigned, hereby declare that:

1. The above information is consistent with the actual situation and has been completed with supporting documents; and
2. Documents submitted via Electronic Systems or via email are true and identical to the original documents
   (Insert city name, date, month, and year)
   Organizer
   Signature
   (Full Name)
   For the Interests of the Financial Services Authority Note:

PART C
LETTER OF INTRODUCTION FOR PKA BUSINESS LICENSE APPLICATION

Number : …………………………… ................ 20 ...
Attachments : ..………………………….
Subject : Business License Application
PKA

To
Yth.
Head of the Department of Regulation and Licensing of Financial Sector Technology Innovation, Digital Assets and Crypto Assets

Referring to the Circular Letter of the Financial Services Authority Number ….. Year 2024 on Alternative Credit Scoring, we hereby submit an application to obtain a business license as a PKA:

Applicant Name : ....................................................
Nationality : ....................................................
Applicant Position : ....................................................
Applicant Address : ....................................................
City .....
Province .....
Postal Code .....
Applicant Phone Number : ....................................................
Applicant Mobile Phone Number : ....................................................
Applicant Email : ....................................................
Company Name : …………………………………………..
Application Name : …………………………………………..
Company Address : ....................................................
City .....
Province .....
Postal Code .....
Company Phone/Fax Number : ....................................................
Company Website Address : ....................................................
Company Email : ....................................................

To complete the aforementioned application, we hereby submit the following documents:
a. data and information related to institutional and governance; b. data and information related to business models;
c. data and information related to information technology; and
d. data and information related to partnerships;

We hereby declare that documents submitted via Electronic Systems or email are true and identical to the original documents. If it is later found that the data/information/documents submitted by us are incorrect and/or there is forgery, we are willing to be subject to sanctions in accordance with the provisions of legislation.

This is our application and for your attention, Sir/Madam, we thank you.

Sincerely,
Board of Directors Members ………….............
Stamp Duty
Rp.10,000,-
..................................

PART D
RESUME FORM

Personal Data
Name : ....................................................
Place/Date of Birth : ....................................................
Gender : ....................................................
Religion : ....................................................
Nationality : ....................................................
Population Identity Number (NIK) : ....................................................
Address : ....................................................
City .....
Province .....
Postal Code .....
Phone Number : ....................................................
Mobile Phone Number : ....................................................

Education History

1. Formal
   Education Level
   Major/Specialization
   Name/Place
   Year of Graduation

2. Non-Formal (Certified)
   Course/Seminar
   Organizer
   Year

3. Professional Education (Profession)
   Certification
   Organizer
   Year of Graduation

4. Work History
   Company Name
   Position
   Description of Main Duties
   Date of Start Working
   Date of Resignation
   Reason for Leaving

.....,............ 20.....
Applicant,
Stamp Duty
Rp.10,000,-
......................................

PART E
INDIVIDUAL SHAREHOLDER STATEMENT LETTER

To
Yth. Head of the Department of Regulation and Licensing of Financial Sector Technology Innovation, Digital Assets and Crypto Assets

I, the undersigned:
Name : .....................................................................
Population Identity Number (NIK) : .....................................................................
Occupation : .....................................................................
Nationality : .....................................................................
Full Address : .....................................................................
City .....
Province .....
Postal Code .....
Full Address (Domicile) : .....................................................................
City .....
Province .....
Postal Code .....
Company Name : .....................................................................
Company Address : .....................................................................
Company Website Address : .....................................................................

hereby declare truthfully that the capital contribution does not come from:
a. money laundering, terrorism financing, and weapons of mass destruction proliferation financing activities; b. lending; and/or
c. other activities that contradict the provisions of legislation.

This statement letter is made truthfully so that it can be used as appropriate.

.....,............ 20.....
Applicant,
Stamp Duty
Rp.10,000,-
......................................

PART F
STATEMENT LETTER OF SHAREHOLDERS OF A LEGAL ENTITY To The Head of the Department of Regulation and Licensing of Technological Innovation in the Financial Sector, Digital Financial Assets and Crypto Assets

I, the undersigned:
Name : .....................................................................
Position : .....................................................................
Full Address : .....................................................................
City .....
Province .....
Postal Code .....
Company Name : .....................................................................
Company Address : .....................................................................
Company Website Address: .....................................................................
hereby declare truthfully that the capital deposit does not originate from:
a. money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction; b. loans; and/or
c. other activities that violate applicable laws and regulations.

This statement letter is made truthfully for its proper use.

Sincerely,
Director/Manager
PT……………………
Stamp Duty
Rp.10,000,-
..............................................

PART G
STATEMENT LETTER OF BOARD OF DIRECTORS MEMBERS To The Head of the Department of Regulation and Licensing of Technological Innovation in the Financial Sector, Digital Financial Assets and Crypto Assets

I, the undersigned:
Name : .....................................................................
Position : .....................................................................
Full Address : .....................................................................
City .....
Province .....
Postal Code .....
Company Name : .....................................................................
Company Address : .....................................................................
Company Website Address : .....................................................................
hereby declare truthfully that I:

1. do not have non-performing loans and/or financing organized by the Financial Services Authority;
2. have never been sentenced for committing a criminal offense in the financial services and/or economic sector based on a court decision that has had permanent legal force in the last 5 (five) years;
3. have never been sentenced for committing a criminal offense based on a court decision that has had permanent legal force in the last 5 (five) years;
4. have never been declared bankrupt or declared guilty of causing a business entity to be declared bankrupt based on a court decision that has had permanent legal force in the last 5 (five) years; and
5. have never been a shareholder, member of the Board of Directors, or member of the Board of Commissioners at a financial services company whose business license was revoked due to violations in the last 5 (five) years.

This statement letter is made truthfully for its proper use.

Sincerely,
Director/Manager
PT…………………………………
Stamp Duty
Rp.10,000,-
.................................................

PART H
STATEMENT LETTER OF BOARD OF COMMISSIONERS MEMBERS To The Head of the Department of Regulation and Licensing of Technological Innovation in the Financial Sector, Digital Financial Assets and Crypto Assets

I, the undersigned:
Name : .....................................................................
Position : .....................................................................
Full Address : .....................................................................
City .....
Province .....
Postal Code .....
Company Name : .....................................................................
Company Address : .....................................................................
Company Website Address : .....................................................................
hereby declare truthfully that I:

1. do not have non-performing loans and/or financing organized by the Financial Services Authority;
2. have never been sentenced for committing a criminal offense in the financial services and/or economic sector based on a court decision that has had permanent legal force in the last 5 (five) years;
3. have never been sentenced for committing a criminal offense based on a court decision that has had permanent legal force in the last 5 (five) years;
4. have never been declared bankrupt or declared guilty of causing a business entity to be declared bankrupt based on a court decision that has had permanent legal force in the last 5 (five) years; and
5. have never been a shareholder, member of the Board of Directors, or member of the Board of Commissioners at a financial services company whose business license was revoked due to violations in the last 5 (five) years.

This statement letter is made truthfully for its proper use.

Sincerely,
Board of Commissioners/Supervisory Member
PT……………………………………
Stamp Duty
Rp.10,000,-
.................................................

PART I
STATEMENT LETTER OF CONTROLLING SHAREHOLDERS
To
The Head of the Department of Regulation and Licensing of Technological Innovation in the Financial Sector, Digital Financial Assets and Crypto Assets

I, the undersigned:
Name : .....................................................................
Position : .....................................................................
Full Address : .....................................................................
City .....
Province .....
Postal Code .....
Company Name : .....................................................................
Company Address : .....................................................................
Company Website Address : .....................................................................
hereby declare truthfully that:

1. I am committed to complying with laws and regulations and supporting the policies of the Financial Services Authority;
2. I am committed to the healthy development of Alternative Credit Scoring (PKA);
3. I am committed to taking necessary measures if PKA faces financial difficulties; and
4. the source of funds used by the prospective controlling shareholder in share ownership does not originate from and is not for the purpose of money laundering and/or terrorism financing;
5. capital deposits to PKA do not originate from loans;
6. capital deposits to PKA do not originate from financial crime proceeds;
7. I am not listed in the non-performing loan list organized by the Financial Services Authority;
8. I have never been sentenced for committing a criminal offense in the financial services and/or economic sector based on a court decision that has had permanent legal force in the last 5 (five) years;
9. I have never been sentenced for committing a criminal offense based on a court decision that has had permanent legal force in the last 5 (five) years;
10. I have never been declared bankrupt or guilty of causing a corporation/company to be declared bankrupt based on a court decision that has had permanent legal force in the last 5 (five) years; and
11. I have never been a controlling shareholder, member of the Board of Directors, or member of the Board of Commissioners at a financial services company whose business license was revoked due to violations in the last 5 (five) years.

This statement letter is made truthfully for its proper use.

Sincerely,
Board of Commissioners/Supervisory Member
PT……………………………………
Stamp Duty
Rp.10,000,-
.................................................

PART J
FORMAT OF THE LIST OF READINESS OF ELECTRONIC SYSTEM AND DATA INFRASTRUCTURE FOR OPERATIONAL ACTIVITIES List of Readiness of Electronic System and Data Infrastructure

No. Requirements Yes No Remarks and Supporting Documents

Completeness of infrastructure facilities and data center

1. The Organizer places the Data Center at a location separate from the Disaster Recovery Center location.
2. The Organizer places the Data Center and Disaster Recovery Center in Indonesia.
3. The Organizer submits a list of third parties used (if any).
4. The Organizer submits a Cooperation Agreement (PKS) document with each data center provider and/or other third parties. The information that must be included in the PKS at least:
   a. Parties involved in the PKS; b. Type and service specifications;
   c. Service Level Agreement (SLA) for each service provided;
   d. Service usage duration; e. Rights and obligations in service provision; f. Type of Data Center and Disaster Recovery Center used (Mirror Site/Hot Site/Warm Site/Cold Site); and g. Service extension and/or termination.

Remarks:
Service Level Agreement (SLA) is a contract between the service provider and the user that provides a guarantee of expected service levels.
5. Results of independent third-party audit on data center providers (Service Organization Control/SOC).

Backup and Recovery System
6. The Organizer submits a document of the operational continuity plan of the system in facing disruptions and disasters (Business Continuity Plan) which includes:
a. Parties involved in handling disruptions and disasters; b. Minimum systems and services provided during disasters such as call center services and PKA service backups;
c. Information regarding Recovery Point Objective (RPO);
d. Information regarding Recovery Time Objective (RTO); e. Information regarding Work Recovery Time; f. Information regarding Maximum Tolerable Downtime; g. Backup strategies to be implemented (Synchronized/Full Backup/Incremental Backup/Differential Backup); and h. Plan and Implementation of Business Continuity Plan Simulation including Disaster Recovery Plan testing (Walkthrough test/table top test/partial test/full scale test).

Security and Data Protection
7. The Organizer submits documents of concepts, policies, and controls used for the protection of User data of the PKA Service system by ensuring data confidentiality, integrity, and availability, at least covering:
a. People Control; b. Organization Control;
c. Technological Control; and
d. Physical Control.
8. The Organizer submits the scope, methods, and documents of the results of the implementation of Vulnerability Assessment (VA) and Penetration Test (Pentest) conducted by third parties.

Explanation:
a. Vulnerability Assessment is the process of identifying, measuring, and prioritizing (or ranking) vulnerabilities in a system; and b. Penetration Test is an activity where someone attempts to simulate attacks that can be carried out against a specific organization's/company's network to find weaknesses in the network system.

Helpdesk and Monitoring
9. The Organizer submits information and documents related to the helpdesk at least:
a. Helpdesk mechanisms both online and offline; b. Helpdesk response time; and
c. Escalation procedures for User complaints that have not been resolved.

PART K
GUIDELINES FOR ASSESSING COMPETENCE AND PROPRIETY OF PKA

I. SCOPE OF PARTIES UNDERGOING COMPETENCE AND PROPRIETY ASSESSMENT

1. Competence and propriety assessment is conducted against parties nominated as Principal Parties.
2. Principal Parties undergoing competence and propriety assessment include:
   a. PSP, including:

1. individuals and/or legal entities that will purchase, receive gifts, receive inheritance, or other forms of transfer of rights over PKA shares, thereby causing them to become PSP;
2. PKA shareholders who are not classified as PSP (non-PSP) that purchase, receive gifts, receive inheritance, or other forms of transfer of rights over PKA shares, thereby causing them to become PSP;
3. non-PSP that increase capital deposits, thereby causing them to become PSP;
4. individuals and/or legal entities that will become PSP in a "PKA resulting from merger";
5. individuals and/or legal entities that will become PSP in a "PKA resulting from consolidation"; and/or
6. individuals and/or legal entities that will become PSP in a PKA to be established.
   b. Principal Parties other than PSP consisting of members of the Board of Directors or members of the Board of Commissioners, including:
7. individuals who have never been members of the Board of Directors or members of the Board of Commissioners, who are nominated to become members of the Board of Directors or members of the Board of Commissioners;
8. individuals who are currently serving as members of the Board of Directors or members of the Board of Commissioners, who are nominated to become members of the Board of Directors or members of the Board of Commissioners, either in the same financial services sector or in a different sector;
9. individuals who have previously served as members of the Board of Directors or members of the Board of Commissioners, who are nominated to become members of the Board of Directors or members of the Board of Commissioners, at the same PKA or at another PKA, examples:
   a) individuals who have previously served as members of the Board of Commissioners who are nominated to become independent commissioners, at the same PKA or at another PKA as long as they meet the requirements related to independent commissioners; or b) individuals who have previously served as members of the Board of Directors who are nominated to become lead commissioners at the same PKA or at another PKA;
10. members of the Board of Directors or members of the Board of Commissioners, who will transfer positions within the same company, examples:
    a) members of the Board of Commissioners who will transfer positions to become members of the Board of Directors within the same company; b) members of the Board of Directors who will transfer positions to become members of the Board of Commissioners within the same company; or c) members of the Board of Directors or members of the Board of Commissioners who will transfer positions to higher positions within the same company, examples:
    (1) members of the Board of Directors who will be appointed as lead directors, or equivalent positions, within the same company, and/or (2) members of the Board of Commissioners who will be appointed as lead commissioners, or equivalent positions, within the same company;
11. members of the Board of Directors or members of the Board of Commissioners, who originate from a PKA that undergoes merger or consolidation, examples:
    a) members of the Board of Directors or members of the Board of Commissioners, who originate from a "PKA that undergoes merger"; b) members of the Board of Directors or members of the Board of Commissioners, at a "PKA resulting from merger" who originate from a "PKA that receives the merger" including extension of positions; or c) members of the Board of Directors or members of the Board of Commissioners, at a "PKA resulting from consolidation" who originate from a "PKA that undergoes consolidation".

3. PSP as referred to in item 2 letter a are individuals, legal entities, and/or business groups that:
   a. own shares or capital of 25% (twenty-five percent) or more of the issued shares with voting rights; or b. own shares or capital of less than 25% (twenty-five percent) of the issued shares with voting rights but it can be proven that they have control over PKA, either directly or indirectly.
4. Competence and propriety assessment is not conducted for the extension of positions within the same PKA for members of the Board of Directors or members of the Board of Commissioners, except for the extension of positions as referred to in item 2 letter b.
5. Extension of positions as referred to in item 4 is any reassignment to the same, equivalent, or lower position, examples:
   a) the same position is an information technology director who is reappointed as an information technology director within the same company; b) an equivalent position is a finance director who is appointed as a risk management director within the same company; and c) a lower position is:

1. a lead director who is appointed as a director within the same company; or
2. a lead commissioner who is appointed as a commissioner within the same company.

II. REQUIREMENTS IN COMPETENCE AND PROPRIETY ASSESSMENT

A. Integrity Requirements

1. Integrity requirement assessment is conducted to ensure the level of compliance and good faith of Principal Parties to manage, supervise, and/or execute business processes so that the PKA sector company is able to fulfill its obligations to Consumers.
2. Assessment criteria for integrity requirements for Principal Parties include:
   a. legal capacity to perform legal acts; b. having good ethics and morals, at least shown by a attitude of complying with applicable regulations, including never being sentenced for proven criminal offenses within a certain period before nomination, including:

1. criminal offenses in the financial services sector whose sentence has been completed within the last 20 (twenty) years before nomination;
2. criminal offenses, namely criminal offenses listed in the Criminal Code (KUHP) and/or similar to the KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentence has been completed within the last 10 (ten) years before nomination; and/or
3. other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trafficking, terrorism, counterfeiting money, in the tax sector, in the forestry sector, in the environmental sector, and in the marine and fisheries sector, whose sentence has been completed within the last 20 (twenty) years before nomination.
   What is meant by "before nomination" as referred to in item 1), item 2), and item 3) is calculated from the date the individual has finished serving the criminal sentence until the date of the PKA's request letter to the Financial Services Authority;
   c. having a commitment to comply with laws and regulations and support the policies of the Financial Services Authority, among others proven by:
4. never violating prudential principles in the financial services sector; and
5. never violating laws and regulations in the financial services sector;
   d. having a commitment to the healthy development of PKA, among others proven by:
6. submission of the prospective PSP's plan for the development of PKA operations, which at least contains the direction and strategy for PKA development, strategy in the event that the PKA to be owned and/or controlled faces financial difficulties, and the PKA capital plan for a period of at least 3 (three) years;
7. never violating commitments agreed upon with the supervising and overseeing agency, namely acts of failing to fulfill some or all of the commitments agreed upon contained in meeting minutes, minutes of meetings, or stated in the company's commitment statement letter, including not executing:
   a) recommendations from audit results reports; b) programs for PKA rehabilitation; and c) settlement of PKA obligations to Consumers that have been agreed upon;
8. having a commitment not to commit and/or repeat acts and/or actions that cause the individual to be listed in the list of parties prohibited from being Principal Parties, for candidates who have previously been listed in the list of parties prohibited from being Principal Parties;
9. never committing acts that provide unfair benefits to shareholders, Principal Parties, employees, and/or other parties that can harm or reduce Consumer rights;
10. never committing acts that are not within their authority or outside their authority; and/or
11. never being declared unable to exercise their authority; and
    e. not being included as a party prohibited from becoming a Principal Party candidate.

B. Financial Reputation Requirement Assessment

1. Assessment of financial reputation requirements is conducted to assess financial capability and to assess the involvement of Board of Directors members and Board of Commissioners members who are not shareholders in the financial reputation requirement assessment criteria.
2. Assessment criteria for financial reputation requirements for Principal Parties as referred to in item 1 include:
   a. do not have non-performing loans and/or financing; and b. have never been declared bankrupt and/or have never been a shareholder who is not a shareholder, member of the Board of Directors or member of the Board of Commissioners who was declared guilty of causing a corporation to be declared bankrupt within the last 5 (five) years before nomination.
3. The definition of non-performing loans as referred to in item 2 letter a does not include non-performing loans originating from credit card annual fee charges, credit card administrative fees, and/or other charges related to credit cards that do not originate from credit card usage transactions.

C. Financial Feasibility Requirements

1. Assessment of financial feasibility requirements is conducted to assess the financial capability of PSP who are shareholders in the financial reputation factor criteria.
2. Assessment criteria for financial feasibility requirements include:
   a. having a financial reputation as referred to in letter B item 2; b. having financial capability that can support the development of PKA business, namely:

1. the financial position of individual PSP capable of supporting the company's business development, accompanied by a statement letter from the individual PSP that they have financial capability, which can be supported by supporting documents; and
2. the position of the latest annual financial report audited by a public accountant for legal entity PSP, including: liquidity position, solvency position, investment placement position, return on assets position, and return on equity position; and
   c. having a commitment to take necessary measures if PKA faces financial difficulties.

D. Competency Requirements

1. Assessment of the competency factor is conducted to assess the knowledge, ability, experience, and expertise possessed by members of the Board of Directors and members of the Board of Commissioners, to be adequate and relevant to their positions.
2. Assessment criteria for the competency factor for members of the Board of Directors and members of the Board of Commissioners include assessment of:
   a. knowledge and ability in strategic management conducted to ensure that:

1. members of the Board of Directors and members of the Board of Commissioners have adequate and relevant knowledge to their positions, among others proven by:
   a) knowledge regarding organizational structure, management, job descriptions, and responsibilities; b) potential ability to analyze business processes, lead organizations, and manage human resources to achieve organizational goals; c) basic supervisory knowledge including internal controls, specifically for members of the Board of Commissioners;

d) basic knowledge related to leadership and conflict management specifically for members of the Board of Commissioners; and/or e) the ability to evaluate corporate obligations or other technical aspects;

2. members of the Board of Directors, members of the Board of Commissioners, have an understanding of legislation, which is at least demonstrated by:
   a) understanding of legislation in the financial services sector, prioritized over legislation in the industry to be held by members of the Board of Directors, members of the Board of Commissioners; b) basic understanding of other relevant legislation, including understanding of legislation in the field of limited liability companies, Financial Services Authority, bankruptcy, and money laundering criminal acts, and its implementing regulations;

3. members of the Board of Directors, members of the Board of Commissioners have the ability to perform strategic management in order to develop a healthy business, which is at least demonstrated by:
   a) for members of the Board of Directors, namely:
   (1) formulating the company's vision and mission; (2) conducting an analysis of the PKA situation; (3) conducting an analysis of the development of the PKA's internal conditions; (4) setting targets to be achieved related to the position held; and (5) designing short-term, medium-term, and long-term strategies in order to achieve company targets, including the ability to anticipate developments in the future, such as the ability to prepare annual business plans and medium-term and long-term corporate plans using realistic and measurable assumptions; b) for members of the Board of Commissioners, namely:
   (1) conducting a basic analysis of the PKA situation; (2) conducting an analysis of the development of the PKA's internal conditions, including the company's financial health conditions, human resources, and technology; and (3) conducting an analysis of the Board of Directors' policies;

b. experience in the PKA field and/or other fields relevant to their position, which is at least demonstrated by:

1. experience at relevant Financial Service Institutions (LJK); and/or
2. experience at positions relevant to the plan to be appointed or employed; and
   c. expertise in the PKA field and/or other fields relevant to their position at the PKA.

III. APPLICATION PROCEDURE AND ADMINISTRATIVE REQUIREMENTS
A. Application Procedure

1. An application to obtain approval as a Principal Party is submitted by:
   a. prospective owners, founders, or members of the Board of Directors of the PKA in the case of a PKA business license application; and b. members of the Board of Directors of the PKA, in the case where the PKA has obtained a business license.

2. In the event that members of the Board of Directors of the PKA as referred to in item 1 letter a or letter b cannot perform their functions or have a conflict of interest with the PKA, the application is submitted by:
   a. other members of the Board of Directors who do not have a conflict of interest with the PKA; b. members of the Board of Commissioners if all members of the Board of Directors cannot perform their functions or have a conflict of interest with the PKA; or
   c. other parties appointed by the General Meeting of Shareholders (RUPS) if all members of the Board of Directors or members of the Board of Commissioners cannot perform their functions or have a conflict of interest with the PKA.

3. The application to obtain approval as a Principal Party as referred to in items 1 and 2 is submitted to the Financial Services Authority (Otoritas Jasa Keuangan) using the format in Appendix Part L which is an integral part of this Financial Services Authority Regulation.

4. The submission of the application letter to obtain approval as a Principal Party as referred to in item 3 must be accompanied by administrative requirement documents.

5. The PKA fills out the administrative requirement fulfillment list using the format in Appendix Part M which is an integral part of this Financial Services Authority Regulation.

6. The PKA must first conduct a self-assessment of the members of the Board of Directors and members of the Board of Commissioners, before being submitted to the Financial Services Authority using the format in Appendix Part N which is an integral part of this Financial Services Authority Regulation.

7. The self-assessment as referred to in item 6 is conducted by the party having the nomination and remuneration function at each PKA.

8. In the event that the Financial Services Authority's data communication network system related to licensing is available, then the submission of the application letter to obtain approval as a Principal Party and/or administrative requirement documents as referred to in item 4 is submitted to the Financial Services Authority online.

9. In the event that the Financial Services Authority's data communication network system is not available or technical disturbances occur at the time of submission of the application to obtain approval as a Principal Party and/or administrative requirement documents, the application and/or administrative requirement documents are submitted to the Financial Services Authority offline.

10. The submission of the application to obtain approval as a Principal Party and/or administrative requirement documents offline as referred to in item 9 must be submitted in hardcopy and softcopy form in compact disc (CD) or other electronic data storage media.

11. If technical disturbances as referred to in item 9 are experienced by the Financial Services Authority, the Financial Services Authority announces via the Financial Services Authority website on the same day the technical disturbance occurs.

12. The submission of an application to obtain approval as a Principal Party for prospective Principal Parties submitted by the PKA must state the number of Principal Parties according to the target position.

B. Administrative Requirement Documents

1. Completeness of administrative requirement documents as referred to in letter A item 4 for parties nominated as Individual PSPs who are shareholders, namely:
   a. a completed list using the format in Appendix Part O which is an integral part of this Financial Services Authority Regulation, accompanied by:

1. photocopy of identity documents in the form of an identity card (KTP) or valid passport;
2. tax identification number (NPWP) for Indonesian citizens or equivalent documents valid for foreign citizens; and
3. 2 (two) sheets of latest color photos with size 4x6 cm; and
   b. a statement letter that has been filled out completely, with sufficient stamp, and signed by the nominated party using the format in Appendix Part P which is an integral part of this Financial Services Authority Regulation, which contains a statement of meeting integrity aspects, financial feasibility aspects, and not undergoing a competency and propriety assessment process at a Financial Service Institution (LJK).

2. Completeness of administrative requirement documents as referred to in letter A item 4 for parties nominated as Legal Entity PSPs who are shareholders, namely:
   a. a completed list using the format in Appendix Part O which is an integral part of this Financial Services Authority Regulation, which contains legal entity data, accompanied by:

1. photocopy of establishment documents in the form of a legal entity establishment deed, including the latest approved articles of association changes by the competent authority or equivalent documents for foreign business entities according to regulations in the country of origin; and
2. tax identification number (NPWP) for Indonesian legal entities or equivalent documents valid for foreign legal entities;
   b. the latest annual financial report audited by a public accountant;
   c. a resume of members of the Board of Directors and members of the Board of Commissioners that has been filled out completely using the format in Appendix Part D which is an integral part of this Financial Services Authority Regulation, accompanied by:
3. personal data:
   a) photocopy of identity documents in the form of an identity card (KTP) or valid passport; b) tax identification number (NPWP) for Indonesian citizens or equivalent documents valid for foreign citizens; and c) 2 (two) sheets of latest color photos with size 4x6 cm; and
4. skills mastered and foreign language proficiency; and
   d. a statement letter from the legal entity represented by the Board of Directors that has been filled out completely and with sufficient stamp using the format in Appendix Part P which is an integral part of this Financial Services Authority Regulation, which contains a statement of meeting integrity aspects, financial reputation aspects, and not undergoing a competency and propriety assessment process at a Financial Service Institution (LJK).

3. Completeness of administrative requirement documents as referred to in letter A item 4 for parties nominated as members of the Board of Directors, members of the Board of Commissioners, namely:
   a. a resume that has been filled out completely using the format in Appendix Part D which is an integral part of this Financial Services Authority Regulation, accompanied by:

1. personal data:
   a) photocopy of identity documents in the form of an identity card (KTP) or valid passport; b) tax identification number (NPWP) for Indonesian citizens or equivalent documents valid for foreign citizens; and c) 2 (two) sheets of latest color photos with size 4x6 cm;
2. formal education history documents:
   a) photocopy of the latest diploma; and b) photocopy of expertise certificates (if any);
3. training and seminar documents previously attended (if any):
   a) photocopy of graduation certificates or attendance certificates for training previously attended; and b) photocopy of attendance certificates for seminars previously attended;
4. work history documents:
   a) employment experience certificate; b) recommendation letter and/or letter of statement to resign from the previous PKA; and c) recommendation from the National Sharia Board of the Indonesian Ulema Council (DSN-MUI) specifically for members of the Sharia Supervisory Board;
5. awards relevant to the financial industry previously achieved (if any); and
6. skills mastered and foreign language proficiency;
   b. a statement letter that has been filled out completely, with sufficient stamp, and signed by the nominated party as a member of the Board of Directors, member of the Board of Commissioners, using the format in Appendix Part P which is an integral part of this Financial Services Authority Regulation, which contains a statement of meeting integrity aspects, financial reputation aspects, and not undergoing a competency and propriety assessment process at a Financial Service Institution (LJK);
   c. a writing regarding the plans to be carried out after appointment in the target position, including:
7. vision and mission;
8. programs to be carried out during the term of office; and
9. targets to be achieved during the term of office; and
10. a statement letter of non-affiliation with the PKA, for prospective independent commissioners.

C. Administrative Requirement Document Fulfillment List

1. Before the PKA submits administrative requirement documents to the Financial Services Authority in the nomination application, the PKA must first fill out the administrative requirement fulfillment list as referred to in letter A item 5.

2. The PKA must submit the results of the administrative requirement fulfillment list as referred to in item 1 to the Financial Services Authority which is signed by:
   a. prospective owners, founders, or competent PKA officials in the case of a PKA establishment license application; or b. competent PKA officials in the case where the PKA has obtained a business license.

3. The submission of the results of the administrative requirement document fulfillment list as referred to in item 2 is accompanied by an explanation stating that the administrative requirement documents submitted:
   a. are complete and correct in terms of quantity, format, and substance; and b. state that the administrative requirement documents in the form of "statements" and "lists" are correct and have been filled out and signed by the proposed candidates.

4. The administrative requirement fulfillment list as referred to in item 2 is submitted together with the submission of the administrative requirement documents of the proposed candidates.

D. Self Assessment

1. Self-assessment of members of the Board of Directors, members of the Board of Commissioners, as referred to in letter A item 6 is conducted by the PKA before being submitted to the Financial Services Authority, which is related to:
   a. assessment of the fulfillment of integrity, financial reputation, and competency requirements for prospective members of the Board of Directors to be proposed. The assessment must at least cover the assessment of track record including sanctions previously given by the PKA, educational background both formal and informal and achievements achieved in the implementation of duties, the candidate's ability to hold the position to be held, concurrent positions, as well as ownership of credit and/or non-performing financing; and b. fulfillment of requirements in accordance with legislation regulations.

2. The results of the self-assessment as referred to in item 1 are submitted to the Financial Services Authority at the time of submitting the application.

E. Submission Address

1. The application letter to obtain approval as a Principal Party together with administrative requirement documents as referred to in letter A items 3 and 4, and the results of self-assessment as referred to in letter D item 2 are submitted completely to the Financial Services Authority.

2. The submission of the application letter to obtain approval as a Principal Party together with administrative requirement documents, and the results of self-assessment as referred to in item 1 are addressed to the following address:
   Head of the Executive Supervisor for Financial Sector Technology Innovation, Digital Financial Assets and Crypto Assets of the Financial Services Authority

Up. Head of the Department for Financial Sector Technology Innovation Regulation and Licensing, Digital Financial Assets and Crypto Assets Soemitro Djojohadikusumo Building Jalan Lapangan Banteng Timur 2-4 Jakarta 10710, Indonesia

3. In the event of a change in the address of the Financial Services Authority office for the submission of application letters to obtain approval as a Principal Party together with administrative requirement documents, and the results of self-assessment as referred to in item 2, the Financial Services Authority will convey notification regarding the address change via letter or announcement.

IV. PROCEDURE FOR IMPLEMENTATION OF COMPETENCY AND PROPIETY ASSESSMENT
A. Administrative Assessment

1. The implementation of competency and propriety assessment for prospective PSP candidates includes stages:
   a. administrative assessment; and b. determination of the results of the competency and propriety assessment.

2. The implementation of competency and propriety assessment for prospective members of the Board of Directors, Board of Commissioners, includes stages:
   a. administrative assessment; and b. determination of the results of the competency and propriety assessment.

3. Administrative assessment is conducted to assess whether the application to obtain approval as a Principal Party has met integrity, financial reputation or financial feasibility, and/or competency requirements.

4. In the event that the administrative requirement documents received by the Financial Services Authority are incomplete, the Financial Services Authority requests the PKA to complete the administrative requirement documents as referred to in Roman IV letter B within a maximum period of 20 (twenty) working days.

5. In the event that the PKA does not submit the missing administrative requirement documents within a maximum period of 20 (twenty) working days as referred to in item 4, the PKA is deemed to have cancelled the application to obtain approval as a Principal Party.

6. The Financial Services Authority issues a letter of rejection for the application letter to obtain approval as a Principal Party submitted by the PKA if the administrative requirement documents are declared incorrect.

7. In the context of administrative assessment in the implementation of competency and propriety assessment as referred to in item 3, the Financial Services Authority may request information and/or recommendation letters regarding Principal Parties from other competent parties.

B. Presentation or Exposition by Prospective PSP

1. In the context of administrative assessment, the prospective PSP concerned must conduct a presentation or exposition.

2. In the event that the prospective PSP is the central government or local government, the presentation or exposition as referred to in item 1 is conducted if deemed necessary.

3. The presentation or exposition must be conducted by the prospective PSP in the context of administrative assessment as referred to in item 1, at least regarding:
   a. the prospective PSP's plans for the development of the PKA to be owned and/or controlled for at least 3 (three) years from ownership; and b. the prospective PSP's strategy in the event that the PKA to be owned and/or controlled experiences financial difficulties.

4. The implementation of the exposition or presentation as referred to in item 1 is conducted through direct face-to-face meetings at the Financial Services Authority office or other places determined by the Financial Services Authority.

5. The Financial Services Authority notifies the schedule for the implementation of the presentation or exposition as referred to in item 1 in writing to the PKA Board of Directors no later than 10 (ten) working days after the application for competency and propriety assessment as referred to in Roman IV letter A item 3 together with administrative requirement documents as referred to in Roman IV letter A item 4 is received completely by the Financial Services Authority.

6. Prospective PSPs who cannot attend the scheduled presentation or exposition as referred to in item 5 must submit written notification accompanied by valid reasons to the Financial Services Authority no later than 1 (one) working day before the implementation of the competency and propriety assessment.

7. Based on the written notification as referred to in item 6, the Financial Services Authority may provide 1 (one) opportunity for presentation or exposition and convey a new schedule for the implementation of the presentation or exposition to the prospective PSP.

8. In the event that based on the written notification as referred to in item 6 the Financial Services Authority does not give an opportunity for presentation or exposition to the prospective PSP concerned who does not attend the implementation of the presentation or exposition according to the new schedule without notification, the Financial Services Authority cancels the application to obtain approval as a Principal Party for that prospective PSP.

9. The Financial Services Authority conveys notification of the cancellation of the prospective PSP's application if the reason for absence as referred to in item 6 is not accepted or the concerned party does not submit notification regarding their absence in the presentation or exposition as referred to in item 6.

10. In the event that the prospective PSP does not attend the implementation of the presentation or exposition without notification or with notification but the reason for absence is not accepted by the Financial Services Authority, then the Financial Services Authority determines that the concerned party is not approved to become a PSP.

11. The presentation or exposition as referred to in item 1 is conducted in the Indonesian language.

12. Prospective PSPs who cannot speak Indonesian must provide their own interpreter services during the implementation of the presentation or exposition.

13. In the event that the prospective PSP is a legal entity, the presentation or exposition as referred to in item 1 may be conducted by the directors of that legal entity or directors of other legal entities in its business group or the owners and ultimate controllers of that legal entity (ultimate shareholders).

14. In the event that the directors of other legal entities in its business group or the owners and ultimate controllers of that legal entity (ultimate shareholders) as referred to in item 13 are unable to attend, they may be represented by another official 1 (one) level below the director based on appointment by letter of power of attorney (power of attorney).

C. Clarification of Prospective Members of the Board of Directors, Members of the Board of Commissioners

1. Based on the results of the administrative assessment conducted as referred to in letter A item 2 letter a as well as information and/or recommendation letters obtained by the Financial Services Authority regarding Principal Parties from other competent parties as referred to in letter A item 7, the Financial Services Authority may determine prospective members of the Board of Directors, members of the Board of Commissioners who require a clarification process, if:
   a. there is negative information regarding prospective members of the Board of Directors or members of the Board of Commissioners; b. prospective members of the Board of Directors or members of the Board of Commissioners do not yet have experience at a PKA in Indonesia that is relevant to the target position and considering the position, size, complexity, and/or problems of the PKA where the concerned party will be nominated; and/or
   c. prospective members of the Board of Directors or members of the Board of Commissioners have previously been determined not approved in previous nominations.

2. The Financial Services Authority conducts clarification of prospective members of the Board of Directors or members of the Board of Commissioners as referred to in item 1 to obtain explanations from the concerned party regarding information obtained by the Financial Services Authority or to assess the concerned party's experience or expertise.

3. Prospective members of the Board of Directors, members of the Board of Commissioners, must attend the implementation of clarification as referred to in item 1 through direct face-to-face meetings at the Financial Services Authority office or other places determined by the Financial Services Authority.

4. The Financial Services Authority notifies the schedule for the implementation of clarification as referred to in item 1 in writing to the PKA Board of Directors no later than 10 (ten) working days after the application for competency and propriety assessment together with administrative requirement documents is received by the Financial Services Authority.

5. Prospective members of the Board of Directors or members of the Board of Commissioners who cannot attend the scheduled implementation of clarification as

has been determined as referred to in item 6 must submit a written notification accompanied by reasonable grounds to the Financial Services Authority no later than 1 (one) working day before the implementation of the fitness and propriety assessment.

6. Based on the written notification referred to in item 7, the Financial Services Authority may provide 1 (one) opportunity for clarification and submit a new schedule for the implementation of the clarification to the prospective members of the Board of Directors or members of the Board of Commissioners.

7. In the event that based on the written notification referred to in item 7 the Financial Services Authority does not provide an opportunity for clarification to the prospective members of the Board of Directors or members of the Board of Commissioners or the relevant party does not attend the implementation of the clarification according to the new schedule without notification, the Financial Services Authority cancels the implementation of the fitness and propriety assessment of the relevant party.

8. The Financial Services Authority submits a notification of the cancellation of the application to obtain approval to become a Principal Party of the prospective members of the Board of Directors or members of the Board of Commissioners if the reason for absence referred to in item 7 is not accepted or if the relevant party does not submit a notification regarding their absence in the clarification referred to in item 7.

9. In the event that prospective members of the Board of Directors or members of the Board of Commissioners do not attend the implementation of the clarification without notification or with notification but the reason for their absence is not accepted by the Financial Services Authority, then the Financial Services Authority determines that the relevant party is not approved and is declared not to meet the fitness and propriety requirements.

10. Clarification as referred to in item 1 is conducted in the Indonesian language.

11. Prospective members of the Board of Directors or members of the Board of Commissioners who cannot speak Indonesian must provide their own interpreter services during the implementation of the clarification.

V. CESSATION OF FITNESS AND PROPRIETY ASSESSMENT

1. The Financial Services Authority ceases the fitness and propriety assessment of prospective Principal Parties of Alternative Credit Scoring institutions if the prospective party is undergoing:
   a. legal proceedings; b. fitness and propriety assessment processes at the Financial Services Authority; and/or
   c. re-assessment processes due to indications of integrity, financial feasibility, financial reputation, and/or competence issues at a Licensed Financial Service Provider (LJK).

2. What is meant by undergoing legal proceedings as referred to in item 1 letter a is if the prospective Principal Party is undergoing bankruptcy proceedings, investigation processes, or judicial processes (including appeals and cassations) in cases involving:
   a. criminal offenses in the Financial Services Sector; b. criminal offenses, namely criminal offenses listed in the Criminal Code (KUHP) and/or those similar to the KUHP abroad with a prison sentence threat of 1 (one) year or more; and/or
   c. other criminal offenses with a prison sentence threat of 1 (one) year or more, including but not limited to corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trafficking, terrorism, counterfeiting money, in the field of taxation, in the field of forestry, in the field of the environment, and in the field of marine and fisheries.

3. What is meant by undergoing fitness and propriety assessment processes at the Financial Services Authority as referred to in item 1 letter b is if the prospective Principal Party is having an application for fitness and propriety assessment submitted to the Financial Services Authority as a prospective Principal Party at a Licensed Financial Service Provider (LJK).

4. The Financial Services Authority ceases the fitness and propriety assessment against prospective Principal Parties undergoing fitness and propriety assessment processes at the Financial Services Authority as referred to in item 1 letter b for the most recent nomination submitted by the Alternative Credit Scoring institution to the Financial Services Authority.

5. What is meant by undergoing re-assessment processes due to indications of integrity, financial feasibility or financial reputation, and/or competence issues at an Alternative Credit Scoring institution as referred to in item 1 letter c is if the prospective Principal Party is in a re-assessment process due to indications of integrity, financial feasibility or financial reputation, and/or competence issues in their capacity as a party who owns, manages, supervises, and/or has significant influence on the Alternative Credit Scoring institution.

6. The Financial Services Authority notifies in writing the cessation of the fitness and propriety assessment to the Alternative Credit Scoring institution that submitted the nomination.

VI. PROCEDURES FOR DETERMINING FITNESS AND PROPRIETY ASSESSMENT RESULTS AND CONSEQUENCES

A. Classification of Assessment Results

1. The results of the fitness and propriety assessment are classified into 2 (two) predicates as follows:
   a. approved; or b. not approved.

2. Prospective Principal Parties who obtain the predicate approved as referred to in item 1 letter a are declared to meet the requirements and obtain approval from the Financial Services Authority to become Principal Parties at the Alternative Credit Scoring institution that submitted the nomination.

3. Prospective Principal Parties who obtain the predicate not approved as referred to in item 1 letter b are declared not to meet the requirements and do not obtain approval from the Financial Services Authority to become Principal Parties at the Alternative Credit Scoring institution that submitted the nomination.

B. Determination and Submission of Fitness and Propriety Assessment Results

1. The Financial Services Authority determines the results of the fitness and propriety assessment against prospective Principal Parties no later than 30 (thirty) working days after all application documents are received completely.

2. In the event that the fitness and propriety assessment process for prospective Principal Parties is conducted at the time of applications for establishment, merger, and/or consolidation of Alternative Credit Scoring institutions, the Financial Services Authority provides the determination of the results of the fitness and propriety assessment within a time frame in accordance with regulations governing the granting of licenses for the establishment, merger, and/or consolidation of Alternative Credit Scoring institutions.

3. What is meant by establishment license as referred to in item 2 is the business license of the Alternative Credit Scoring institution.

4. The results of the fitness and propriety assessment in the form of the predicate approved or the predicate not approved for the application of prospective Principal Parties as referred to in letter A item 1 are submitted in writing to the Alternative Credit Scoring institution that submitted the nomination.

5. The Financial Services Authority may notify the results of the fitness and propriety assessment to interested parties in the implementation of the functions, duties, and authorities of the Financial Services Authority or as required by legislation, including the government, shareholders of Licensed Financial Service Providers, or other parties deemed necessary by the Financial Services Authority.

C. Consequences of Assessment Results

1. For prospective Shareholder Principal Parties (PSP) who are shareholders who obtain the predicate approved as referred to in letter A item 1 letter a by the Financial Services Authority, the relevant party may purchase shares of the Alternative Credit Scoring institution.

2. For prospective Shareholder Principal Parties (PSP) who are shareholders who obtain the predicate not approved as referred to in letter A item 1 letter b by the Financial Services Authority but already hold shares of the Alternative Credit Scoring institution, then:
   a. the relevant party must transfer their ownership of shares in the relevant Alternative Credit Scoring institution and not exercise Control; and b. restrictions are placed on the shareholder rights in the relevant Alternative Credit Scoring institution, namely shareholder rights are only recognized up to the amount of initial shares before the addition of shares that caused the relevant party to become a prospective PSP who is a shareholder.

3. What is meant by transferring ownership of shares in the relevant Alternative Credit Scoring institution as referred to in item 2 letter a is transferring ownership of their shares in the relevant Alternative Credit Scoring institution so that the relevant party no longer meets the criteria as a prospective PSP who is a shareholder.

4. The transfer of share ownership as referred to in item 2 letter a must be carried out no later than 1 (one) year from the date of rejection by the Financial Services Authority.

5. What is meant by shareholder rights as referred to in item 2 letter b includes, for example, the right to attend, quorum calculation, voting in the General Meeting of Shareholders (RUPS), and the right to receive distributed dividends.

6. In the event that prospective Shareholder Principal Parties (PSP) who are shareholders do not carry out the transfer of share ownership within the time frame as referred to in item 4, then the shareholder rights as referred to in item 5 for all shares owned by them are not recognized until the relevant party carries out the transfer of share ownership.

7. The Financial Services Authority may designate parties who are not allowed to receive share transfers as referred to in item 2 letter a.

8. Parties who are not allowed to receive share transfers as referred to in item 7 are parties affiliated with the prospective PSP who is a shareholder, consisting of:
   a. parties who have a family relationship up to the second degree with the prospective PSP who is a shareholder, including to their business group; b. parties who are controllers of the relevant prospective PSP who is a shareholder;
   c. parties where the prospective PSP who is a shareholder acts as a controller; and
   d. parties who have financial interdependence with the prospective PSP who is a shareholder.

9. What is meant by family relationship up to the second degree as referred to in item 8 letter a is both vertical and horizontal relationships, including parents-in-law, children-in-law, and siblings-in-law, covering:
   a. biological/step/adopted parents; b. biological/step/adopted siblings including their spouses;
   c. biological/step/adopted children;
   d. biological/step/adopted grandparents; e. biological/step/adopted grandchildren; f. biological/step/adopted siblings of parents including their spouses; g. spouses; h. parents-in-law;
   i. siblings-in-law;
   j. spouses of biological/step/adopted children; k. grandparents of spouses;
   l. spouses of biological/step/adopted grandchildren; and/or
   m. biological/step/adopted siblings of spouses including their spouses.

10. The Alternative Credit Scoring institution must report the transfer of share ownership as referred to in item 2 letter a to the Financial Services Authority by referring to regulations governing the reporting of articles of association changes related to ownership changes applicable to the Alternative Credit Scoring institution.

11. In the event that the transfer of share ownership as referred to in item 2 letter a is carried out by transferring shares to parties not allowed to receive share transfers as referred to in item 8, then:
    a. the transfer is not considered as a transfer of ownership as referred to in item 2 letter a; b. the Alternative Credit Scoring institution is prohibited from recording the party receiving the transfer in the Alternative Credit Scoring institution's shareholder list; and
    c. the party receiving the transfer does not obtain their rights as a shareholder.

12. The Financial Services Authority cancels the approval as referred to in letter A item 1 letter a if after approval is given:
    a. it is discovered that the information or documents submitted in the fitness and propriety assessment process were incorrect, thereby causing them to not meet the requirements; and/or b. there is information obtained from other authorities that causes the approved party to no longer meet the requirements.

13. For prospective members of the Board of Directors or members of the Board of Commissioners who obtain the predicate approved as referred to in letter A item 1 letter a by the Financial Services Authority, they must be appointed to their positions in accordance with the positions submitted at the time of the fitness and propriety assessment application no later than 3 (three) months from the date the results of the fitness and propriety assessment were determined.

14. In the event that after the time frame as referred to in item 13 has passed, the Principal Party who obtained the predicate approved as referred to in letter A item 1 letter a by the Financial Services Authority has not yet been appointed, then the Alternative Credit Scoring institution that submitted the nomination must notify the Financial Services Authority of the reasons for the non-appointment of the relevant Principal Party no later than 10 (ten) working days from the time frame as referred to in item 13.

15. The Alternative Credit Scoring institution must report the appointment of prospective members of the Board of Directors or members of the Board of Commissioners, as referred to in item 13, to the Financial Services Authority by referring to regulations governing the reporting of Principal Party changes related to management changes applicable to the Alternative Credit Scoring institution.

16. For prospective members of the Board of Directors or prospective members of the Board of Commissioners who are not approved by the Financial Services Authority as referred to in letter A item 1 letter b but have already been appointed as members of the Board of Directors or members of the Board of Commissioners, the Alternative Credit Scoring institution must convene a General Meeting of Shareholders (RUPS) to cancel the appointment of the relevant party within a time frame no later than 3 (three) months from the date the relevant party's application was declared not approved.

17. The Alternative Credit Scoring institution must report the convening of the RUPS to cancel the appointment of members of the Board of Directors or members of the Board of Commissioners as referred to in item 16 to the Financial Services Authority by referring to regulations governing the reporting of Principal Party changes applicable to the Alternative Credit Scoring institution.

PART L
APPLICATION LETTER TO OBTAIN APPROVAL TO BECOME A PRINCIPAL PARTY

Number : (date/month/year)
Attachment :
Subject : Application to Obtain Approval to Become a Principal Party PSP/ Chief Director/ Director/ Chief Commissioner/ Commissioner/ Independent Commissioner *)

To:
To: Head of the Executive Supervisor for Financial Sector Technology Innovation, Digital Financial Assets and Crypto Assets

Attention: Head of the Department for Regulation and Licensing of Financial Sector Technology Innovation, Digital Financial Assets and Crypto Assets

Hereby we submit an application to obtain approval to become a Principal Party for:

1. Name : ........................................................
   Position : As PSP/ Chief Director/ Director/ Chief Commissioner/ Commissioner/ Independent Commissioner *)

2. Name : ........................................................
   Position : As PSP/ Chief Director/ Director/ Chief Commissioner/ Commissioner/ Independent Commissioner*)

3. ... etc :

To complete the aforementioned application, we attach the following administrative requirement documents:

1. application form);

2. curriculum vitae;

3. photocopy of identity documents in the form of an identity card (KTP) or valid passport;

4. tax identification number (NPWP) for Indonesian citizens/Indonesian legal entities or equivalent valid documents for foreign citizens/foreign legal entities;

5. 2 (two) sheets of latest color passport photos with size 4x6 cm;

6. photocopy of establishment documents in the form of articles of incorporation, including the latest amended articles of incorporation approved by the competent authority or equivalent documents for foreign business entities in accordance with regulations in the country of origin*);

7. statement letter meeting aspects of integrity, financial reputation or financial feasibility, and not currently undergoing fitness and propriety assessment at a Licensed Financial Service Provider (LJK);

8. formal education history documents*);

9. training and seminar documents previously attended (if any)*);

10. work experience certificate*);

11. recommendation letter and/or letter of statement to resign from the previous Alternative Credit Scoring institution*);

12. awards relevant to the financial industry previously achieved (if any)*);

13. skills mastered and foreign language proficiency, except for prospective PSPs;

14. latest annual financial report audited by a public accountant*);

15. writing regarding plans to be carried out after appointment to the targeted position*); and

16. statement letter of no affiliation with the Alternative Credit Scoring institution, for prospective independent commissioners.

Hereby we also submit the list of administrative requirement fulfillment as referred to in the Attachment of this Financial Services Authority Regulation.

We can be contacted for reporting purposes at ... via email ... or phone number ... by ...*)

This application is submitted, thank you for your attention, Sir/Madam*).

Owner/Founder/Board of Directors/Board of Commissioners/Other party appointed by RUPS*) Alternative Credit Scoring Institution
................

………………………………
*) strike out what is not necessary
) this requirement is submitted for prospective PSP applications *) this requirement is submitted for prospective PSP applications in the form of legal entities ) this requirement is submitted for prospective members of the Board of Directors and members of the Board of Commissioners

PART M
FORMAT OF THE LIST OF FULFILLMENT OF ADMINISTRATIVE REQUIREMENT DOCUMENTS

A. LIST OF FULFILLMENT OF ADMINISTRATIVE REQUIREMENT DOCUMENTS FOR INDIVIDUAL PSP

List of Fulfillment of Administrative Requirement Documents Application to Obtain Approval to Become a Principal Party for Individual PSP

Company Name :
Company Type :
Letter Number :
Application
Letter Date :
Application

The company submits the following individual names to be proposed as prospective PSPs:

No Name of Prospective PSP Domicile Ownership Percentage Brief description of background for the application to obtain approval to become a Principal Party Contact Person (Name, Phone Number, email)

No Description of Document Substance Yes No
1.
Company
Application Letter
Has the application letter been signed by the prospective owner/founder/Board of Directors/ Board of Commissioners/other party appointed by RUPS?
Has the format used been in accordance with the Attachment of this POJK?
2. Curriculum Vitae
Has the curriculum vitae been in accordance with the format of the Attachment of this POJK?
Has it been attached with a photocopy of a valid KTP/Passport?

No.
Description
Document Details
Substance Yes No
Curriculum Vitae
Has it been attached with a photocopy of an NPWP for Indonesian citizens or equivalent documents valid for foreign citizens?
Has it been attached with 2 (two) sheets of latest color passport photos with size 4x6 cm?
3. Statement Letter
Has the statement letter from the individual PSP been in accordance with the format in the Attachment of this POJK?
Signature above stamp
We declare that the entries above are in accordance with the actual documents and if there are differences, corrections will be made.

Owner/Founder/Competent Official of the Alternative Credit Scoring Institution
................

………………………………
*) strike out what is not necessary

B. LIST OF FULFILLMENT OF ADMINISTRATIVE REQUIREMENT DOCUMENTS FOR PSP IN THE FORM OF A LEGAL ENTITY

List of Fulfillment of Administrative Requirement Documents Application to Obtain Approval to Become a Principal Party for PSP in the Form of a Legal Entity

Company Name :
Company Type :
Letter Number
: Application
Letter Date
: Application

The company submits the following legal entity to be proposed as a prospective corporate PSP

No Company Name Name of Party
Representing the Company
Position
Principal Party
Representing
Domicile Ownership Percentage
Brief description of background for the application to obtain approval to become a Principal Party Contact Person (Name, Phone Number, email) No Description Document Details Substance Yes No 1. Company Application Letter Has the application letter been signed by the prospective owner/founder/Board of Directors/Board of Commissioners/other party appointed by RUPS*)? Has the format used been in accordance with the format in the Attachment of this POJK?

Party
Representing the Company
Has the legal entity/business group of the prospective PSP who is a shareholder*) been represented by the Board of Directors/officials at the Director level?
Has the company form used been in accordance with the format in the Attachment of this POJK?
Has it been attached with a photocopy of establishment documents in the form of articles of incorporation or equivalent documents for foreign business entities in accordance with regulations in the country of origin? No Description Document Details Substance Yes No Party Representing the Company Has it been attached with a photocopy of an NPWP for Indonesian legal entities or equivalent documents valid for foreign legal entities?
3. Curriculum Vitae
Has the curriculum vitae of the members of the Board of Directors and members of the Board of Commissioners been in accordance with the format in the Attachment of this POJK? 4. Annual Financial Report Has it been attached with the latest annual financial report audited by a public accountant?
5. Statement Letter
Has the statement letter from the Directors or equivalent officials representing the legal entity/PSP who is a shareholder*) been in accordance with the format in the Attachment of this POJK? Signature above stamp We declare that the entries above are in accordance with the actual documents and if there are differences, corrections will be made.

Owner/Founder/Competent Official of the Alternative Credit Scoring Institution *)
................

………………………………
*) strike out what is not necessary

C. LIST OF FULFILLMENT OF ADMINISTRATIVE REQUIREMENT DOCUMENTS FOR MEMBERS OF THE BOARD OF DIRECTORS/MEMBERS OF THE BOARD OF COMMISSIONERS

List of Fulfillment of Administrative Requirement Documents Application to Obtain Approval to Become a Principal Party for Members of the Board of Directors/Members of the Board of Commissioners

Company Name :
Company Type :
Reporting Letter Number :
Reporting Letter Date :
The company submits the following individual names to be proposed as prospective Principal Parties of the company:

No Name Position
Brief description of background for the application for change of Board of Directors/ Board of Commissioners ) Reason for nomination :
Name of official being replaced
Reason for replacement of position previously
:
:
Term of Office
Contact Person (Name, Phone
:
Number, email)
No Description Document Details Substance Yes No 1.
Company
Application Letter
Has the application letter been signed by the prospective owner/founder/Board of Directors/Board of Commissioners/other party appointed by RUPS?
Has the format used been in accordance with the format in the Attachment of this POJK?

Curriculum
Vitae
Has the curriculum vitae been in accordance with the format in the Attachment of this POJK?
Has it been attached with a photocopy of a valid KTP/Passport?
Has it been attached with a photocopy of an NPWP for Indonesian citizens or equivalent documents valid for foreign citizens?
Has it been attached with 2 (two) sheets of latest color passport photos with size 4x6 cm?
No
DESCRIPTION
Document Details Substance Yes No
Curriculum Vitae
Has it been attached with formal education history documents in the form of photocopies of the latest diploma and skill certificates (if any)?
Has it been attached with training and seminar documents previously attended (if any)?
Has it been attached with a work experience certificate?
Has it been attached with a recommendation letter and/or letter of statement to resign from the previous Alternative Credit Scoring institution?
Has it been attached with awards relevant to the financial industry previously achieved (if any)?
3. Statement Letter
Has the statement letter from the party nominated as a member of the Board of Directors/member of the Board of Commissioners *) been in accordance with the format in the Attachment of this POJK? Signature above stamp. Has it been attached with a writing regarding plans to be carried out after appointment to the targeted position?

Has it been attached with a statement letter of no affiliation with the Alternative Credit Scoring institution, for prospective independent commissioners?
Signature above stamp.
We declare that the entries above are in accordance with the actual documents and if there are differences, corrections will be made.
Owner/Founder/Competent Official of the Alternative Credit Scoring Institution *)
................

………………………………
*) strike out what is not necessary

PART N
SELF-ASSESSMENT FORMAT FOR BOARD OF DIRECTORS/BOARD OF COMMISSIONERS MEMBERS

A. SELF-ASSESSMENT OF INTEGRITY REQUIREMENTS

I. INTEGRITY REQUIREMENTS

Requirement	Yes	No	Description
A. Competent to perform legal acts
B. Possessing good ethics and morals
1. Never committed a criminal offense in the financial services sector whose sentence has been served within the last 20 (twenty) years before nomination.
2. Never committed a criminal offense, i.e., a criminal offense listed in the Criminal Code (KUHP) and/or similar to the KUHP in foreign countries with a prison sentence threat of 1 (one) year or more whose sentence has been served within the last 10 (ten) years before nomination.
3. Never committed other criminal offenses with a prison sentence threat of 1 (one) year or more, whose sentence has been served within the last 20 (twenty) years before nomination.
C. Having a commitment to comply with laws and regulations and support the policies of the Financial Services Authority
1. Never violated prudential principles in the financial services sector.
2. Never violated laws and regulations in the financial services sector.
D. Having a commitment to the healthy development of PKA
1. Having a commitment not to commit and/or repeat acts and/or actions that cause the person concerned to be listed in the list of parties prohibited from being Principal Parties, for candidates who have previously been listed in the list of parties prohibited from being principal parties.
2. Never committed acts that provide unfair benefits to shareholders, Principal Parties, employees, and/or other parties that can harm or reduce Consumer rights.
3. Never committed acts that are not in accordance with their authority or beyond their authority.
4. Never declared incapable of exercising their authority.
E. Not included as a party prohibited from becoming a Principal Party

B. SELF-ASSESSMENT OF FINANCIAL REPUTATION REQUIREMENTS

II. FINANCIAL REPUTATION REQUIREMENTS

Requirement	Yes	No	Description
1. Does not have non-performing loans and/or financing.
2. Never declared bankrupt and/or never was a shareholder, who is not a shareholder, member of the Board of Directors, or member of the Board of Commissioners who was declared guilty of causing a company to be declared bankrupt within the last 5 (five) years before nomination.

C. SELF-ASSESSMENT OF COMPETENCY REQUIREMENTS

COMPETENCY REQUIREMENTS

Assessment Scale	Description
Less	Once Less	Fair	Good	Very Good
A. Knowledge and ability in strategic management
1. Adequate and relevant knowledge with their position
a. Knowledge regarding organizational structure, management, job descriptions, and responsibilities according to position.
b. Potential ability to perform business process analysis.
c. Ability to lead an organization to achieve organizational goals, specifically for Board of Directors members.
d. Ability to manage human resources to achieve organizational goals, specifically for Board of Directors members.
e. Basic supervisory knowledge including internal control, specifically for Board of Commissioners members.
f. Basic knowledge related to leadership and conflict management, specifically for Board of Commissioners members.
2. Understanding of laws and regulations
a. Understanding of laws and regulations in the financial services sector, prioritizing laws and regulations in the relevant industry.
b. Basic understanding of other relevant laws and regulations, including understanding of laws and regulations in the field of limited liability companies, Financial Services Authority, bankruptcy, and money laundering criminal offenses and their implementing regulations.
3. Ability to perform strategic management in order to develop healthy business
a. Ability to formulate the vision and mission of the company to be led, specifically for Board of Directors members.
b. Ability to perform company situation analysis.
c. Ability to perform analysis of the development of the company's internal conditions.
a. Ability to set targets that must be achieved related to the position held, specifically for Board of Directors members.
b. Ability to design short-term, medium-term, and long-term strategies in order to achieve company targets, specifically for Board of Directors members.
c. Ability to perform analysis of Board of Directors policies, specifically for Board of Commissioners members.

Assessment Scale	Description
No	Yes
B. Experience in the PKA field and/or other fields relevant to their position
Company Name :
Position :
Tenure :
C. Expertise in the PKA field and/or other fields relevant to their position at PKA

PART O
EXAMPLE FORMAT OF APPLICATION FORMS

A. APPLICATION FORM FOR INDIVIDUAL PSP
(Use a separate answer sheet if the available pages are not sufficient)

1. Full name (including alias)
2. Other names (if any)
3. Place and date of birth
4. Address according to identity proof
5. Domicile/correspondence address (if different from address according to item 4)
6. Your professional qualifications and their periods (state fully)
7. Explain your profession/business activities and professional membership in the last two years. Explain including company name, business field, position, professional association followed, and other relevant information
8. Taxpayer Identification Number (NPWP) (for Indonesian Citizens) or equivalent (for Foreign Citizens)
9. Explain the source of funds that you will use to buy PKA shares, whether from:

• Personal wealth?
• Domestic loans?
• Foreign loans?
• Others?
  (State the source)

10. Explain the companies you own (directly and indirectly/nominee)
11. Explain your obligations and responsibilities in that company
12. Are you currently a PSP on another PKA? Explain
13. Are you currently acting as a PSP on a non-PKA company?
14. Do other PKAs in question no. 17 and/or non-PKA companies in question no. 18 have a business relationship with the PKA whose shares you will buy? Explain the type of business relationship in detail
15. Do you intend to buy those shares for the purpose of long-term investment (strategic partner)? If not, explain
16. Do you currently already have shares in the PKA whose shares you will buy (directly or indirectly)? Explain in detail with the composition
17. How many shares will you buy? What is the purchase value? What is its proportion of the total PKA shares? If you have previously owned shares in that PKA, what is the proportion if added with the number of shares you will buy now?
18. How will you use your voting rights in that PKA, individually (you as an individual) or together with your business group/affiliates?
19. Have you ever been asked to stop working, subjected to disciplinary actions/sanctions by the company, or subjected to prohibition sanctions to practice your profession?
20. Have you ever been declared bankrupt by authorities in Indonesia or other countries? Explain specifically
21. When you managed or owned a company, was that company ever declared bankrupt by authorities in Indonesia or other countries?
22. Have you personally, your company, or your business group ever been published and/or become the object of investigation by law enforcement authorities related to criminal issues or other reprehensible acts in the financial field?
23. Do you have a company whose license was ever frozen by authorities in Indonesia or other countries? Explain
24. Do you or your company have a license to conduct business in Indonesia or in other countries? If true, explain the type of business field, how long, where? If there are licenses that were frozen/cancelled, explain specifically
25. Have you, your company, or your business group ever had a license application rejected in the banking/financial sector by authorities in Indonesia or in other countries? Explain in detail
26. Do you and/or your business group have plans to conduct other business in Indonesia or in other countries that will affect the PKA whose shares you will buy? Explain
27. Have you, your company, or your business group ever failed to meet obligations to other parties based on laws in Indonesia or other countries (e.g., tax payments, credits, etc.)? Explain
28. Is your business activity or your company/business group's business activity currently or will be guaranteed by other parties? Explain
29. Explain if there is other information that can provide data as consideration for the Financial Services Authority in processing your application

The undersigned hereby declares that:

1. I have understood the provisions related to my rights and obligations as a PSP who is a shareholder*) as regulated in the applicable provisions.
2. The information provided above is true, complete, and accurate.
3. I will inform the Financial Services Authority within 30 (thirty) days if there are significant changes in information.
4. If the above statement/information is proven to be untrue, then within 30 (thirty) days I am willing to resign from the PSP who is a shareholder*) of PKA.
   *) strike what is not needed
   (City), ...........…
   (Signature above stamp duty is sufficient)
   (Name/Position)

B. APPLICATION FORM FOR PSP IN THE FORM OF A LEGAL ENTITY (Use a separate answer sheet if the available pages are not sufficient)

1. Company name and full address:
2. Place and date of company establishment:
3. Full name (party representing the company):
   Position in the company:
4. Explain your obligations and responsibilities as the party representing the company:
5. Supervisory Body/Regulator of your company:

• Body Name :
• Address :
• Web Site :
  Is the supervisory authority of your company willing to receive the concept of consolidated supervision by the Financial Services Authority?

6. Main business of the company currently and according to the company's articles of association:
7. Is your company currently a PSP on another PKA?
   Explain.
8. Is your company currently acting as a PSP on a non-PKA company?
   Explain.
9. Does the company in question no. 8 have a business relationship with the PKA to be taken over or with the PKA in question no. 7?
   Explain.
10. Does your company intend to become a controller/act as a PSP for the purpose of long-term investment (strategic partner)?
    If Yes, explain your program.
11. Does your company currently already own shares in the PKA to be taken over?
    If Yes, explain the composition in detail in whose name, explain the reasons.
12. Describe in detail, the nominal amount/percentage of ownership to be taken over by your company and your business group.
13. Explain the use of your company's voting rights in the PKA to be taken over: Is it used individually (your company independently) or together with your business group as a unity?
14. State the name and position of the "key person" in your company. Explain detailed information including nationality, academic and professional qualifications, and employment in the last five years.
15. Inform in detail the entire list of shareholders in your company and explain their PSP status.
16. Is your company currently controlling directly or indirectly the PKA to be taken over?
    If Yes, explain.
17. Has your company ever been published or become the object of investigation by competent authorities in Indonesia or other countries in criminal cases or other reprehensible acts in the financial field?
    If Yes, explain, including the final result of the resolution.
18. Is your company a controller of another company whose business license was ever revoked or recommended to be revoked by authorities in Indonesia or other countries:
    If Yes, explain.
19. Does your company or your business group have a license to conduct business in Indonesia or in other countries and then the license was frozen/cancelled?
    If Yes, explain.
20. Has your company or your business group ever had a license application rejected in the banking/financial sector by authorities in Indonesia or in other countries?
    If Yes, explain.
21. Do you and/or your business group have plans to conduct other business in Indonesia or in other countries that will affect the PKA to be taken over?
    If Yes, explain.
22. Has your company or your business group ever failed to meet obligations (tax payments, credits, etc.) to other parties based on laws in Indonesia or other countries?
    If Yes, explain.
23. Is the business activity of your company/other companies in your business group currently or will be guaranteed by other parties?
    If Yes, explain by whom and how that guarantee will be implemented.
24. Explain the source of funds that your company will use to take over the PKA (answer must be accompanied by supporting documents).
25. Explain the reasons/other information that can strengthen the consideration of the Financial Services Authority in processing the application for the takeover of PKA by your company (accompanied by supporting evidence).

The undersigned hereby declares that:

1. I have understood the provisions related to my rights and obligations as a PSP who is a shareholder*) as regulated in the applicable provisions.
2. The information provided above is true, complete, and accurate.
3. I will inform the Financial Services Authority within 30 (thirty) days if there are significant changes in information.
4. If the above statement/information is proven to be untrue, then within 30 (thirty) days I am willing to resign from the PSP who is a shareholder*) of PKA.
   (City), ..........................
   (Signature above stamp duty is sufficient)
   Name & Position:
   _________________________________________________ Name of Company Represented :

---

Legal basis for representation :

---

*) strike what is not needed

PART P
EXAMPLE FORMAT OF DECLARATION LETTERS

A. DECLARATION LETTER FOR PSP

DECLARATION LETTER
(to be filled by candidate PSP *)

I, the undersigned:
Name : .....................................................................................
Address : .....................................................................................
Position : PSP *) hereby declare that I:

1. meet the integrity aspects, including:
   a. competent to perform legal acts; b. never punished for proven commission of criminal offenses in the financial services sector, i.e., criminal offenses in LJK whose sentence has been served within the last 20 (twenty) years before nomination;
   c. never punished for proven commission of criminal offenses, i.e., criminal offenses listed in the Criminal Code (KUHP) and/or similar to the KUHP in foreign countries with a prison sentence threat of 1 (one) year or more whose sentence has been served within the last 10 (ten) years before nomination;
   d. never punished for proven commission of other criminal acts with a prison sentence threat of 1 (one) year or more, including corruption; money laundering; narcotics/psychotropics; smuggling; customs; excise; human trafficking; illegal arms trafficking; terrorism; counterfeiting money; in the field of taxation; in the field of forestry; in the field of the environment; in the field of marine and fisheries whose sentence has been served within the last 20 (twenty) years before nomination; e. never violated prudential principles in the financial services sector; f. never violated laws and regulations in the financial services sector; g. have submitted the candidate PSP's plan for the development of PKA operations; h. never violated commitments agreed with the supervising and supervisory agencies of PKA;
   i. have a commitment not to commit and/or repeat acts and/or actions that cause the person concerned to be listed in the list of parties prohibited from being Principal Parties, for candidates who have previously been listed in the list of parties prohibited from being principal parties;
   j. never committed acts that provide unfair benefits to shareholders, Principal Parties, employees, and/or other parties that can harm or reduce Consumer rights; k. never committed acts that are not in accordance with their authority or beyond their authority;
   l. never declared incapable of exercising their authority; and
   m. not included as a party prohibited from becoming a Principal Party.
2. meet the financial feasibility aspects, including:
   a. having a financial reputation; b. having financial ability that can support business development;
   c. having a commitment to carry out necessary efforts if the company faces capital and liquidity difficulties.
3. am not currently undergoing a suitability and competency assessment process at an LJK.

Thus, this declaration letter is made truthfully and if later it turns out that my statement is not true, I am willing to be sued in court according to applicable laws.

(date/month/year)
(signature)
(full name)
*) strike what is not needed

B. DECLARATION LETTER FOR BOARD OF DIRECTORS MEMBERS/BOARD OF COMMISSIONERS MEMBERS

DECLARATION LETTER
(to be filled by candidates for Board of Directors members and Board of Commissioners members)

I, the undersigned:
Name : .................................................................................
Address : .................................................................................
Position : As Chief Director/Director/ Chief Commissioner/Commissioner *) hereby declare that I:

1. meet the integrity aspects, including:
   a. competent to perform legal acts; b. never punished for proven commission of criminal offenses in the financial services sector, i.e., criminal offenses in LJK whose sentence has been served within the last 20 (twenty) years before nomination;
   c. never punished for proven commission of criminal offenses, i.e., criminal offenses listed in the Criminal Code (KUHP) and/or similar to the KUHP in foreign countries with a prison sentence threat of 1 (one) year or more whose sentence has been served within the last 10 (ten) years before nomination;
   d. never punished for proven commission of other criminal acts with a prison sentence threat of 1 (one) year or more, including corruption; money laundering; narcotics/psychotropics; smuggling; customs; excise; human trafficking; illegal arms trafficking; terrorism; counterfeiting money; in the field of taxation; in the field of forestry; in the field of the environment; in the field of marine and fisheries whose sentence has been served within the last 20 (twenty) years before nomination; e. never violated prudential principles in the financial services sector; f. never violated laws and regulations in the financial services sector; g. never violated commitments agreed with the supervising and supervisory agencies of PKA; h. have a commitment not to commit and/or repeat acts and/or actions that cause the person concerned to be listed in the list of parties prohibited from being Principal Parties, for candidates who have previously been listed in the list of parties prohibited from being principal parties;
   i. never committed acts that provide unfair benefits to shareholders, Principal Parties, employees, and/or other parties that can harm or reduce Consumer rights;
   j. never committed acts that are not in accordance with their authority or beyond their authority; k. never declared incapable of exercising their authority; and
   l. not included as a party prohibited from becoming a Principal Party.
2. meet the financial reputation aspects, including:
   a. do not have non-performing loans and/or financing; and b. never declared bankrupt and never was a shareholder, who is not a shareholder, member of the Board of Directors, or member of the Board of Commissioners, who was declared guilty of causing a company to be declared bankrupt within the last 5 (five) years before nomination.
3. am not currently undergoing a suitability and competency assessment process at an LJK.

Thus, this declaration letter is made truthfully and if later it turns out that my statement is not true, I am willing to be sued in court according to applicable laws.

(date/month/year)
(signature)
(full name)
*) strike what is not needed

C. DECLARATION LETTER FOR INDEPENDENT COMMISSIONERS

DECLARATION LETTER
(to be filled by candidate independent commissioners)

I, the undersigned:
Name : ..........................................................
Place, Date of Birth : ...........................................................
Address : ...........................................................
Position : Candidate Independent Commissioner .........................................
(to be filled with company name) hereby declare that, I :

1. Do not have an affiliation relationship with members of the Board of Directors, members of the Board of Commissioners, or shareholders of the same PKA; and
2. Have never been a member of the Board of Directors, member of the Board of Commissioners, or held a position 1 (one) level below the Board of Directors at the same PKA or another company that has an affiliation relationship with that PKA within the period according to applicable laws and regulations.

Thus, this declaration letter is made truthfully and if later it turns out that my statement is not true, I am willing to resign as an Independent Commissioner .......
*)
*) filled with company name

(date/month/year)
(signature)
(stamp duty)
...............................
(full name)

PART Q
REASSESSMENT GUIDELINES FOR PRINCIPAL PARTIES OF PKA

I. PRINCIPAL PARTIES SUBJECT TO REASSESSMENT

1. Principal Parties subject to the provisions of this Financial Services Authority Regulation include:
   a. Controlling Principal Parties, namely PKA PSPs; b. Managing Principal Parties, namely:

1. members of the Board of Directors;
2. members of the Board of Commissioners.

2. Reassessment of Principal Parties as referred to in item 1 includes:
   a. Principal Parties currently holding office or exercising Control over the PKA, where there are indications of involvement and/or responsibility for issues regarding integrity, financial feasibility, financial reputation, and/or competence; b. parties who, at the time of being Principal Parties of the PKA, had indications of involvement and/or responsibility for issues regarding integrity, financial feasibility, financial reputation, and/or competence, but at the time of reassessment:

1. have become shareholders of other Financial Institutions (LJKs), and/or work at other LJKs; for example, during an examination at PT DEF, a violation was found committed by the IT Director of PT DEF, Mr. A. From document research, it was known that the violation involved the Financial Director of PT DEF, Mr. B, who had become the Financial Director at PT ABC. In this case, the parties subject to reassessment are Mr. A as the IT Director of PT DEF and Mr. B as the former Financial Director of PT DEF; or
2. are no longer shareholders of LJKs, and/or no longer work at LJKs; for example, during an examination at PT XYZ, a violation was found committed by Mr. C as the Compliance Director, whose term of office had expired. In this case, the party subject to reassessment is Mr. C as the former Compliance Director of PT XYZ, even though he has ceased from his position and no longer works in the PKA field or other LJKs.

II. SCOPE OF REASSESSMENT

1. The implementation of reassessment of Principal Parties is conducted at any time when, based on evidence, data, and/or information obtained from indirect supervision (off-site supervision), direct supervision (on-site supervision), and/or other information, there are indications of involvement and/or responsibility for:
   a. integrity and/or financial feasibility issues of the Controlling Principal Party; or b. integrity, financial reputation, and/or competence issues of the Managing Principal Party.

2. Integrity and/or financial feasibility issues for the Controlling Principal Party as referred to in item 1 letter a are issues related to:
   a. actions, whether direct or indirect, involving influencing and/or ordering the Managing Principal Party and/or employees of the PKA to conceal and/or obscure violations of certain regulations or actual financial conditions and/or transactions, including:

1. false recording and/or fictitious transactions, whether on the asset or liability side of the PKA, including transactions in administrative accounts;
2. setting unreasonable actuarial assumptions;
3. embezzlement or manipulation;
4. incorrect bookkeeping practices and/or financial reports of the PKA;
5. hacking of the PKA's information system technology; and
6. concealing, destroying, and/or eliminating bookkeeping records and/or transaction supporting documents or PKA bookkeeping records;
   b. actions, whether direct or indirect, involving influencing and/or ordering the Managing Principal Party and/or employees of the PKA to provide unfair benefits to shareholders, Principal Parties, PKA employees, and/or other parties that can harm or reduce PKA profits, including:
7. sale and/or purchase of assets, including assets in the form of investment instruments owned by the PKA, at prices that are unreasonable compared to market prices;
8. provision of facilities and/or salaries that do not comply with statutory regulations and/or are unreasonable to members of the Board of Commissioners, members of the Board of Directors, employees, and/or other parties;
9. provision of commissions to other parties unfairly in connection with the conduct of business activities;
10. receipt of fees unfairly in connection with the conduct of business activities; and
11. actions that utilize the PKA to finance personal interests and/or their business group illegally;
    c. actions, whether direct or indirect, involving influencing and/or ordering the Managing Principal Party and/or employees of the PKA to commit acts violating prudential principles in the financial services sector and/or good PKA management principles, including:
12. unhealthy debt and/or liability management practices;
13. marketing products and/or conducting activities that have not received approval from the Financial Services Authority;
14. purchase or disposal of assets, including assets in the form of investment instruments, without considering prudential principles and risk management; and
15. provision of funds to parties, sectors, and/or activities prohibited by statutory regulations;
    d. being proven to have committed criminal offenses that have been decided by a court and have permanent legal force, namely:
16. criminal offenses in the financial services sector;
17. criminal offenses, namely criminal offenses listed in the Criminal Code (KUHP) and/or similar foreign KUHPs with a prison sentence threat of 1 (one) year or more; and/or
18. other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trafficking, terrorism, counterfeiting money, in the tax field, in the forestry field, in the environmental field, in the maritime field, and fisheries;
    e. causing the PKA to experience difficulties that endanger the continuity of the PKA's business and/or can endanger the financial services industry, including actions violating statutory regulations that can cause the PKA's business activities to be frozen and/or its business license to be revoked; f. not executing orders from the Financial Services Authority to perform and/or not perform certain actions; g. having non-performing loans and/or financing at LJKs and/or being a controller, member of the board of directors, member of the board of commissioners, or equivalent of a company that has non-performing loans and/or financing, excluding non-performing loans and/or financing arising from annual fees, administrative costs, and/or other charges that do not originate from credit card usage transactions; h. being proven to be declared bankrupt and/or being a shareholder, member of the board of directors, member of the board of commissioners, or equivalent, who is declared guilty of causing a company to be declared bankrupt or have its business license revoked;
    i. not taking necessary measures when the PKA faces capital and/or liquidity difficulties, including:
19. not taking measures to increase capital deposits; and
20. not taking measures to seek new investors; and/or
    j. refusing to provide commitments and/or not fulfilling commitments agreed upon with the Financial Services Authority and/or the government, such as commitments to be fulfilled by the PKA as stated in the direct examination results report of the PKA.

3. Integrity, financial reputation, and/or competence issues for the Managing Principal Party as referred to in item 1 letter b are issues related to:
   a. actions, whether direct or indirect, involving concealing and/or obscuring violations of certain regulations or actual financial conditions and/or transactions, including:

1. false recording and/or fictitious transactions, whether on the asset or liability side of the PKA, including transactions in administrative accounts;
2. setting unreasonable actuarial assumptions;
3. embezzlement or manipulation;
4. incorrect bookkeeping practices and/or financial reports of the PKA;
5. hacking of the PKA's information system technology; and
6. concealing, destroying, and/or eliminating bookkeeping records and/or transaction supporting documents or PKA bookkeeping records;
   b. actions, whether direct or indirect, involving providing unfair benefits to shareholders, Principal Parties, PKA employees, and/or other parties that can harm or reduce PKA profits, including:
7. sale and/or purchase of assets, including assets in the form of investment instruments owned by the PKA, at prices that are unreasonable compared to market prices;
8. provision of facilities and/or salaries that do not comply with statutory regulations and/or are unreasonable to members of the Board of Commissioners, members of the Board of Directors, employees, and/or other parties;
9. provision of unfair premium rates to insured parties or unfair financing interest rates to debtors;
10. provision of commissions to other parties unfairly in connection with the conduct of business activities;
11. receipt of fees unfairly in connection with the conduct of business activities; and
12. actions that utilize the PKA to finance personal interests and/or their business group illegally;
    c. actions, whether direct or indirect, involving committing acts violating prudential principles in the PKA field and/or good PKA management principles, including:
13. unhealthy debt and/or liability management practices;
14. marketing products and/or conducting activities that have not received approval from the Financial Services Authority;
15. purchase or disposal of assets, including assets in the form of investment instruments, without considering prudential principles and risk management; and
16. provision of funds to parties, sectors, and/or activities prohibited by statutory regulations;
    d. being proven to have committed criminal offenses that have been decided by a court and have permanent legal force, namely:
17. criminal offenses in the financial services sector;
18. criminal offenses, namely criminal offenses listed in the Criminal Code (KUHP) and/or similar foreign KUHPs with a prison sentence threat of 1 (one) year or more; and/or
19. other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trafficking, terrorism, counterfeiting money, in the tax field, in the forestry field, in the environmental field, in the maritime field, and fisheries;
    e. causing the PKA to experience difficulties that endanger the continuity of the PKA's business and/or can endanger the financial services industry, including actions violating statutory regulations that can cause the PKA's business activities to be frozen and/or its business license to be revoked; f. not executing orders from the Financial Services Authority to perform and/or not perform certain actions; g. having non-performing loans and/or financing at LJKs and/or being a controller, member of the board of directors, member of the board of commissioners, or equivalent of a company that has non-performing loans and/or financing, excluding non-performing loans and/or financing arising from annual fees, administrative costs, and/or other charges that do not originate from credit card usage transactions; h. being proven to be declared bankrupt and/or being a shareholder, member of the board of directors, member of the board of commissioners, or equivalent, who is declared guilty of causing a company to be declared bankrupt or have its business license revoked;
    i. not conducting strategic management for the healthy development of the PKA, including the ability to interpret the vision and mission of the PKA, anticipate economic and financial services sector developments, analyze the PKA industry situation and industries directly related to the PKA's business activities; and
    j. refusing to provide commitments and/or not fulfilling commitments agreed upon with the Financial Services Authority and/or the government, such as commitments to be fulfilled by the PKA as stated in the direct examination results report of the PKA.

III. REASSESSMENT PROCEDURE

1. The Financial Services Authority conducts reassessment with the following steps:
   a. clarification of evidence, data, and/or information to the Principal Party being reassessed; b. determination and transmission of the interim reassessment results to the Principal Party being reassessed;
   c. response from the Principal Party being reassessed to the interim reassessment results; and
   d. determination and notification of the final reassessment results to the Principal Party being reassessed.

2. The Financial Services Authority sends a letter requesting clarification of evidence, data, and/or information as referred to in item 1 letter a to the Principal Party being reassessed.

3. For Principal Parties who no longer own, manage, supervise, and/or have influence on the PKA at the time of reassessment, the notification for the request for clarification can be done by correspondence through reachable parties and/or summons through mass media.

4. The Principal Party being reassessed is given the opportunity to submit responses to the request for clarification of evidence, data, and/or information as referred to in item 1 letter a, at the latest 10 (ten) working days from the date of the written request for clarification from the Financial Services Authority.

5. The Financial Services Authority may summon the Principal Party for an interview process to clarify evidence, data, and/or information, which must be conducted within a maximum period of 10 (ten) working days from the date of the written request for clarification from the Financial Services Authority.

6. If the Principal Party being reassessed does not exercise the right to submit clarification of evidence, data, and/or information, including during the interview as referred to in item 5, the Financial Services Authority determines and transmits the interim reassessment results to the Principal Party being reassessed.

7. Based on the results of clarification of evidence, data, and/or information, the Financial Services Authority determines and transmits the interim reassessment results to the Principal Party being reassessed.

8. The Principal Party being reassessed is given the opportunity to submit responses to the interim reassessment results as referred to in item 6 or item 7, at the latest 10 (ten) working days from the date of the Financial Services Authority's letter.

9. If the Principal Party being reassessed does not exercise the right to submit responses to the interim reassessment results within the specified period as referred to in item 8, the Financial Services Authority determines the interim reassessment results to become the final reassessment results.

10. If the Financial Services Authority obtains new evidence, data, and/or information before the determination and notification of the final reassessment results as referred to in item 1 letter d, the Financial Services Authority determines the final reassessment results by considering the new evidence, data, and/or information obtained.

11. The determination of the final reassessment results as referred to in item 9 or item 10 is still conducted by referring to the process as referred to in item 1 letter a to letter c.

12. The determination of the final reassessment results is based on the level of involvement and/or responsibility of the Principal Party being reassessed, categorized as:
    a. perpetrator; or b. assisting perpetrator.

13. The term "perpetrator" as referred to in item 12 letter a means:
    a. a person who orders, commands, or proposes the occurrence of an act; b. a person who approves, participates in approving, or signs;
    c. a person who commits or participates in committing an act based on orders, with or without pressure, and who should know or should suspect that the order violates statutory regulations, including:

1. a person who executes proposals/orders by providing analysis/recommendation support for the occurrence of an act/decision and who should know or should suspect that the proposal/order violates statutory regulations and does not attempt to refuse to perform the act or order; and
2. a person who executes a decision and who should know or should suspect that the decision violates statutory regulations and does not attempt to refuse to perform the act or order; and/or
   d. a person who commits an act due to a specific promise or reward.

14. The term "assisting perpetrator" as referred to in item 12 letter b means a person who, by executing duties, positions, and/or due to an order from another party, with or without pressure, commits or participates in committing an act, and who should know or should suspect that the act or order violates statutory regulations, but who has attempted to refuse to perform the act or order, proven by supporting documents and/or who has reported the act or order to the relevant work unit handling violations of statutory regulations.

IV. FINAL REASSESSMENT RESULTS

1. The Financial Services Authority determines the final reassessment results for Principal Parties with the following predicates:
   a. pass; or b. fail.

2. Parties categorized as assisting perpetrators may be given a "pass" predicate if they submit a letter of commitment stating a commitment not to repeat violation actions in the future.

3. Violation of the commitment as referred to in item 2 can serve as the basis for reassessment of the party concerned.

4. The Financial Services Authority notifies the final reassessment results of Principal Parties in writing to the Controlling Principal Party, the PKA, the Principal Party being reassessed, and other interested parties.

V. CONSEQUENCES OF FINAL REASSESSMENT RESULTS

1. Principal Parties determined with a "pass" predicate meet the requirements to remain as PKA PSPs, members of the Board of Directors, and members of the Board of Commissioners.

2. Controlling Principal Parties determined with a "fail" predicate due to issues:
   a. integrity, are prohibited from becoming:

1. Controlling Principal Parties or holding shares in PKAs; and/or
2. Managing Principal Parties of PKAs.
   b. financial feasibility, are prohibited from becoming:
3. Controlling Principal Parties where the Principal Party undergoes reassessment; for example, a PSP at PT XYZ determined to have failed reassessment due to financial feasibility issues is prohibited from becoming a PSP at any PKA company; and/or
4. Managing Principal Parties where the Principal Party undergoes reassessment; for example, an individual PSP at PT XYZ determined to have failed reassessment due to financial feasibility issues regarding financial reputation is prohibited from becoming a member of the Board of Directors or Board of Commissioners at any PKA company.

3. Managing Principal Parties determined with a "fail" predicate due to issues:
   a. integrity, are prohibited from becoming:

1. Controlling Principal Parties or holding shares in PKAs; and/or
2. Managing Principal Parties and/or Principal Officials at PKAs.
   b. financial reputation, are prohibited from becoming:
3. Controlling Principal Parties where the Principal Party undergoes reassessment; and/or
4. Managing Principal Parties where the Principal Party undergoes reassessment.
   c. competence, are prohibited from becoming Managing Principal Parties where the Principal Party undergoes reassessment.

4. The imposition of prohibition periods on the parties as referred to in items 2 and 3, with details as stated in the Appendix which is an integral part of this Financial Services Authority Regulation.

5. PKAs are required to follow up on the dismissal of Managing Principal Parties within a maximum period of 3 (three) months from the date of notification from the Financial Services Authority by convening an Extraordinary General Meeting of Shareholders (RUPS) to dismiss (appoint) Managing Principal Parties determined with a "fail" predicate.

6. PKAs are required to report the follow-up as referred to in item 5 to the Financial Services Authority within a maximum period of 10 (ten) working days from the date of the RUPS convening for the dismissal of Managing Principal Parties.

7. PSPs who are shareholders determined with a "fail" predicate are required to transfer all share ownership in:
   a. PKAs in the event the PSP is determined to have failed due to integrity factors; or b. PKAs where the Principal Party undergoes reassessment, in the event the PSP is determined to have failed due to financial feasibility factors, within a maximum period of 1 (one) year from the date the "fail" predicate is determined by the Financial Services Authority.

8. The Financial Services Authority may determine a separate time period for the share transfer obligation as referred to in item 7 in the event:
   a. in the Financial Services Authority's assessment, the step needs to be adjusted to the PKA rehabilitation program as regulated in statutory regulations and/or policies in the financial services sector; and/or b. PSPs who are shareholders are subject to the obligation to transfer all share ownership in more than 1 (one) LJK.

9. Rights of the Controlling Party of the PKA Operator Regarding Dividend Distribution for PKAs Structured as Limited Liability Companies

The following provisions apply:
a. The controlling Main Party retains the right to dividend payments for a period of at most 1 (one) year calculated from the date the Financial Services Authority (OJK) establishes the 'fail' predicate. b. In the event that the period referred to in letter a has expired and the controlling Main Party has not transferred all share ownership as referred to in item 7 or item 8, the right to dividend payments is suspended until the relevant party transfers all of its share ownership in accordance with applicable regulations.

VI. REQUEST FOR RECONSIDERATION

1. A Main Party established with a 'fail' predicate may submit a request for reconsideration of the 'fail' predicate before the consequence period expires.

2. A request for reconsideration as referred to in item 1 may be submitted if it meets the following criteria:
   a. there is new evidence, data, and/or information regarding the absence, or failure to provide clarification or response, during the reassessment; b. there is a final and binding court decision stating that the party established with a 'fail' predicate as referred to in item 1 is not proven to have committed a criminal offense or is not proven to be declared bankrupt and/or to be a shareholder, member of the Board of Directors, or member of the Board of Commissioners, or equivalent, who is declared guilty of causing a company to be declared bankrupt or have its business license revoked;
   c. as a consequence of the implementation of the Laws of the Republic of Indonesia; and/or
   d. having served ¾ (three-quarters) of the consequence period, and the Main Party:

   1. has no negative records during the period of being declared 'fail'; and
   2. is committed to contributing significantly to the strengthening or rescue of the PKA financial services industry, which is realized within a timeframe set by the Financial Services Authority.

3. New evidence, data, and/or information regarding absence, or failure to provide clarification or response, as referred to in item 2 letter a must include strong and relevant reasons or considerations regarding the evidence of absence or failure to provide clarification or response, including:
   a. illness that prevents the party being reassessed from functioning normally; and b. other reasons that cause the party being reassessed to be unable to provide clarification or response within the timeframe set by the Financial Services Authority.

4. The term 'consequence of the implementation of the Laws of the Republic of Indonesia' as referred to in item 2 letter c includes, among others, the implementation of the Law of the Republic of Indonesia Number 11 of 2016 on Tax Amnesty.

5. The term 'having no negative records' as referred to in item 2 letter d item 1) means not committing legal violations with a penalty of imprisonment/detention of more than 1 (one) year, not causing bankruptcy, and/or not being a shareholder, member of the Board of Directors, or member of the Board of Commissioners, or equivalent, who is declared guilty of causing a company to be declared bankrupt or have its business license revoked.

6. The commitment to contribute significantly to the strengthening or rescue of the PKA industry as referred to in item 2 letter d item 2) is stated, among others, in a written document containing an action plan with a specific timeframe for realization or the provision of funds in the form of an escrow account.

7. A request for reconsideration as referred to in item 1 must be accompanied by the following documents:
   a. identity documents, at least consisting of:

   1. photocopy of the electronic identity card (KTP);
   2. curriculum vitae;
   3. recent 4x6 cm passport photo; and
   4. photocopy of the Taxpayer Identification Number (NPWP);
      b. photocopy of the final assessment decision of the Main Party stating that the applicant failed;
      c. evidence documents in accordance with the reconsideration request criteria, including:
   5. new evidence, data, and/or information regarding absence or failure to provide clarification or response during the reassessment, such as an official medical certificate from the hospital where the applicant was treated;
   6. a copy of a final and binding court decision stating that the applicant is not proven to have committed a criminal offense or is not proven to be declared bankrupt and/or to be a shareholder, member of the Board of Directors, or member of the Board of Commissioners, or equivalent, who is declared guilty of causing a company to be declared bankrupt or have its business license revoked; and
   7. official and valid evidence of the consequences of the implementation of laws;
      d. proof of having no negative records during the period of being declared 'fail', including:
   8. a stamped statement letter stating that the applicant:
      a) is not proven to be declared bankrupt and/or to be a shareholder, member of the Board of Directors, or member of the Board of Commissioners, or equivalent, who is declared guilty of causing a company to be declared bankrupt or have its business license revoked; and b) has never been sentenced for being proven to commit legal violations with a penalty of more than 1 (one) year; and
   9. a police record certificate.

8. If necessary, the Financial Services Authority is authorized to request other supporting documents and/or information related to the reconsideration request documents as referred to in item 7.

9. The Financial Services Authority grants approval or rejection of the reconsideration request submitted by the Main Party established with a 'fail' predicate based on:
   a. research on the completeness and truthfulness of documents; b. analysis of the reconsideration documents; and
   c. other considerations, such as the impact on the PKA condition, both individually and industrially.

10. In the event that the analysis results reveal that the reconsideration request criteria are not met and/or the submitted documents are incomplete, the Financial Services Authority notifies the applicant that the reconsideration request is rejected.

11. The applicant may submit a reconsideration request again if the reconsideration request criteria are met and/or the documents held are complete.

12. In the event that the criteria are met, the reconsideration request approved by the Financial Services Authority is carried out through the following steps:
    a. clarification of evidence, data, and/or information to the Main Party submitting the reconsideration request; b. establishment and transmission of the preliminary results of the reconsideration to the Main Party submitting the reconsideration request;
    c. response from the Main Party submitting the reconsideration request regarding the preliminary results of the reconsideration; and
    d. establishment and notification of the final results of the reconsideration to the Main Party submitting the reconsideration request.

13. A Main Party declared to have passed the reconsideration process may become a Main Party through the capability and propriety assessment process referring to this Financial Services Authority Regulation.

VII. DELIVERY ADDRESS

1. Submission of clarifications, statement letters, and/or responses from Main Parties being assessed in the reassessment process is delivered to:
   Executive Head of Financial Technology Sector, Digital Financial Assets, and Crypto Asset Supervision Financial Services Authority Attention: Head of Department of Regulation and Licensing of Financial Technology Sector, Digital Financial Assets, and Crypto Asset Soemitro Djojohadikusumo Building Jalan Lapangan Banteng Timur 2-4 Jakarta 10710, Indonesia

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

2. In the event of a change in the address of the Financial Services Authority office, the delivery address shall be in accordance with the information provided on the official website of the Financial Services Authority.

CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR