OJK Regulation No. 35 of 2024 on Licensing and Institutional Aspects of Pension Funds

EXTRACT
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 35 OF 2024
CONCERNING
LICENSING AND INSTITUTIONAL ASPECTS OF PENSION FUNDS BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to implement the provisions of Article 139 paragraph (4), Article 139 paragraph (7), Article 140 paragraph (4), Article 141 paragraph (3), Article 142 paragraph (7), Article 143 paragraph (4), Article 144 paragraph (8), Article 182 paragraph (5), Article 183 paragraph (7), Article 184 paragraph (9), and Article 185 paragraph (4) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, it is necessary to establish a Financial Services Authority Regulation regarding the licensing and institutional aspects of pension funds; b. that the Financial Services Authority Regulation Number 9/POJK.05/2014 concerning the Dissolution and Liquidation of Pension Funds, the Financial Services Authority Regulation Number 13/POJK.05/2016 concerning the Procedures for Requesting Approval of the Establishment of Employer Pension Funds and Approval of Changes to Pension Fund Regulations of Employer Pension Funds, the Financial Services Authority Regulation Number 14/POJK.05/2016 concerning the Approval of the Establishment of Financial Institution Pension Funds and Changes to Pension Fund Regulations of Financial Institution Pension Funds, the Financial Services Authority Regulation Number 15/POJK.05/2016 concerning Requirements for Managers and Supervisory Boards of Employer Pension Funds and Acting Managers of Financial Institution Pension Funds, the Financial Services Authority Regulation Number 33/POJK.05/2016 concerning the Implementation of Pension Programs Based on Sharia Principles, and the Financial Services Authority Regulation Number 15/POJK.05/2019 concerning Pension Fund Governance, are deemed necessary to be adjusted in accordance with the provisions of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector and the development of the pension fund industry in Indonesia, thus requiring the refinement of regulations;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning the Licensing and Institutional Aspects of Pension Funds;

Recalling:

Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
Law Number 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 CONCERNING LICENSING AND INSTITUTIONAL ASPECTS OF PENSION FUNDS.

CHAPTER I
GENERAL PROVISIONS

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

Pension Fund is a legal entity that manages and implements a program promising pension benefits.
Employer Pension Fund, hereinafter abbreviated as DPPK, is a Pension Fund formed by the founder for the benefit of some or all of its employees as participants, which creates obligations towards the employer.
Financial Institution Pension Fund, hereinafter abbreviated as DPLK, is a Pension Fund formed by a specific financial service institution, as the founder, intended for employees included by their employer and/or individuals independently.
Pension Benefit is the benefit received by participants either periodically and/or lump sum as old-age income linked to retirement age, working period, and/or contribution period.
Pension Fund Regulation, hereinafter abbreviated as PDP, is a regulation containing provisions that serve as the basis for the implementation of the pension program for a Pension Fund.
Pension Program is any program that seeks to provide Pension Benefits to participants.
Defined Contribution Pension Program, hereinafter abbreviated as PPIP, is a Pension Program where the contributions are determined in the PDP and all contributions and their development results are credited to each participant's account as Pension Benefits.
Defined Benefit Pension Program, hereinafter abbreviated as PPMP, is a Pension Program where the benefits are determined in the PDP or another Pension Program that is not a PPIP.
Participant is an individual who meets the requirements to join a Pension Program.
Normal Retirement Age is the normal age when a Participant is entitled to receive Pension Benefits.
Any Person is an individual, corporation, or business entity, whether in the form of a legal entity or not, or other bodies.
Employer is Any Person who employs labor by paying wages, salaries, or other forms of compensation.
Founder is a legal entity that forms a DPPK and/or DPLK.
Co-Founder is an Employer that includes some or all of its employees in a Pension Program implemented by a DPPK.
Sharia Principles are Islamic legal principles based on fatwas and/or Sharia compliance statements issued by institutions having authority in determining fatwas in the Sharia field.
Pension Program Based on Sharia Principles is a Pension Program implemented based on Sharia Principles.
Sharia Unit is a unit formed by a DPPK to implement a Pension Program Based on Sharia Principles.
Manager is the Pension Fund organ authorized and fully responsible for managing the Pension Fund for the benefit of the Pension Fund, in accordance with the purpose and objectives of the Pension Fund, and representing the Pension Fund inside and outside of court.
Supervisory Board is the Pension Fund organ tasked with providing advice and suggestions and conducting supervision over the management of the Pension Fund to the Manager.
Sharia Supervisory Board is a part of the Pension Fund organ tasked with providing advice and suggestions and conducting supervision over the implementation of Pension Fund activities to ensure compliance with Sharia Principles.
Entitled Party is the party having rights to Pension Benefits in the event of the Participant's death, namely widow/widower, child, or party designated by the Participant if the Participant has no widow/widower or child.
Participant Voluntary Contribution is additional contributions from Pension Fund Participants to increase Pension Benefits.
Actuarial Report is the result of actuarial valuation prepared by an actuary, which serves as the basis for calculating contributions, payment of Pension Benefits, other Pension Benefits, and/or other benefits.
Investment Directive is the investment policy and strategy determined by the Founder or Founder and Supervisory Board, which must serve as a guideline for the Manager in carrying out investments.
Good Governance for Pension Funds, hereinafter referred to as Pension Fund Governance, is a process and structure used by Pension Funds to achieve pension fund management objectives by applying principles of transparency, accountability, responsibility, independence, and fairness.
Pension Fund Governance Guidelines are guidelines serving as the foundation for the application of Pension Fund Governance.
Liquidator is the party conducting the Pension Fund liquidation process.

Article 2
Types of Pension Funds consist of:
a. DPPK; and b. DPLK.

CHAPTER II
ESTABLISHMENT OF PENSION FUNDS

First Section
Legal Entity Status and Ownership of Pension Funds

Article 3
(1) Pension Funds have the status of a legal entity with conditions and procedures in accordance with Laws concerning the development and strengthening of the financial sector and this Financial Services Authority Regulation. (2) Pension Fund assets are separated from the assets of the Founder's legal entity. (3) Pension Fund assets as referred to in paragraph (2) must be excluded from any legal claims against the Founder's assets.

Article 4
Any Person implementing a Pension Program must obtain approval as a Pension Fund from the Financial Services Authority, except for Pension Programs based on separate laws.

Article 5
(1) DPPK can only be formed by an Employer and with the approval of the Financial Services Authority.
(2) DPLK can only be formed by a legal entity holding a business license from the Financial Services Authority as:
a. commercial bank; b. Sharia commercial bank;
c. life insurance company;
d. Sharia life insurance company; e. investment manager; f. Sharia investment manager; or g. other institutions regulated further in a Financial Services Authority Regulation after coordination with the minister in charge of financial government affairs, and with the approval of the Financial Services Authority.

Second Section
Establishment of Pension Funds

Paragraph 1
General

Article 6
(1) DPPK can be established for more than 1 (one) Employer.
(2) The Employer as referred to in paragraph (1) acting as the Founder must meet requirements consisting of:
a. knowledge of legislation in the fields of Pension Funds and labor; b. commitment to operate the DPPK in accordance with Pension Fund regulations;
c. having a company regulation stating the intention to include employees in the DPPK; and
d. having a study showing that the DPPK is feasible to be established.
(3) The study as referred to in paragraph (2) letter d must at least cover:
a. background of the establishment of the DPPK; b. cost-benefit analysis of establishing the DPPK;
c. projection of the number of Participants for each year for 3 (three) years;
d. projection of DPPK operational costs for each year for 3 (three) years; e. projection of DPPK wealth sources for each year for 3 (three) years; and f. funding support and/or infrastructure support from the Founder to support DPPK operational costs as referred to in letter d, which is not a wealth source of the DPPK as referred to in letter e.

Article 7
(1) Legal entities as referred to in Article 5 paragraph (2) letters a to f must meet requirements consisting of:
a. having held a business license for at least 2 (two) years, except in the case of separation or merger; b. not experiencing financial difficulties for 2 (two) consecutive years prior to the application;
c. under normal supervision for 2 (two) consecutive years prior to the application;
d. including the plan to establish the DPLK in the current business plan submitted to the Financial Services Authority; e. commitment to operate the DPLK in accordance with Pension Fund regulations; f. having a written recommendation from the Financial Services Authority supervisor; and g. having a study showing that the DPLK is feasible to be established. (2) The study as referred to in paragraph (1) letter g must at least cover:
a. background of the establishment of the DPLK; b. business plan and strategy of the DPLK, including marketing plan and strategy;
c. projection of the number of Participants and managed funds of the DPLK for 1 (one) year and 3 (three) years ahead;
d. projection of DPLK operational costs for 1 (one) year and 3 (three) years ahead; and e. funding support and/or infrastructure support from the Founder to support DPLK operational costs as referred to in letter d. (3) For investment managers as referred to in Article 5 paragraph (2) letter e and Sharia investment managers as referred to in Article 5 paragraph (2) letter f, in addition to meeting the requirements as referred to in paragraph (1), they must meet additional requirements consisting of:
a. having average managed funds of at least IDR 25,000,000,000,000.00 (twenty-five trillion rupiah) in the last 3 (three) years at the time of applying for the DPLK license; and b. meeting the minimum adjusted net working capital value required in the last 2 (two) years in accordance with Financial Services Authority Regulations concerning the maintenance and reporting of net working capital for investment managers.

Paragraph 2
Establishment of DPPK

Article 8
(1) DPPK as referred to in Article 5 paragraph (1) can implement PPMP and/or PPIP.
(2) The Founder submits a request for approval of the establishment of the DPPK to the Financial Services Authority.
(3) The request as referred to in paragraph (2) must use the request form for approval of the establishment of the DPPK contained in the Appendix in Roman numeral I, which is an integral part of this Financial Services Authority Regulation, by attaching:
a. PDP; b. written statement of the Founder;
c. written statement of the Co-Founder, if any;
d. approval of the company owner or general meeting of shareholders or equivalent for the Founder's written statement; e. approval of the company owner or general meeting of shareholders or equivalent for the Co-Founder's written statement, if any; f. letter of appointment of the Manager, Supervisory Board, and/or Sharia Supervisory Board; g. organizational structure and human resources of the DPPK equipped with job descriptions; h. Investment Directive;
i. Actuarial Report, if implementing PPMP;
j. initial balance sheet of the DPPK, if there are assets or initial funds; k. company regulation stating the intention to include employees in the DPPK as referred to in Article 6 paragraph (2) letter c;
l. study on the establishment of the DPPK as referred to in Article 6 paragraph (2) letter d;
m. proof of DPPK system readiness; n. proof of payment settlement for licensing fees for the approval of the establishment of the DPPK; and o. other documents needed in accordance with the program implementation and/or other benefits being applied for. (4) The request for approval of the establishment of the DPPK as referred to in paragraph (2) is submitted simultaneously with the request for competency and propriety assessment for prospective Managers, Supervisory Boards, and/or Sharia Supervisory Boards in accordance with Financial Services Authority Regulations concerning competency and propriety assessments for key parties of financial service institutions.

Article 9
(1) The written statement of the Founder as referred to in Article 8 paragraph (3) letter b contains:
a. summary of the PDP; b. decision to finance the implementation of the DPPK in accordance with legislation in the fields of Pension Funds and PDP; and
c. commitment of the Founder regarding funding support and/or infrastructure support for the DPPK that is not a wealth source of the DPPK.
(2) The written statement of the Co-Founder as referred to in Article 8 paragraph (3) letter c contains:
a. participation of employees as DPPK Participants; b. willingness to follow applicable legislation in the fields of Pension Funds and PDP established by the DPPK Founder; and
c. decision to finance the implementation of the DPPK in accordance with legislation in the fields of Pension Funds and PDP.

Article 10
(1) The Financial Services Authority has the authority to approve or reject the request for approval of the establishment of the DPPK as referred to in Article 8 paragraph (2). (2) The Financial Services Authority approves or rejects the request for approval of the establishment of the DPPK as referred to in paragraph (1) within a maximum of 3 (three) months since the request for approval of the establishment of the DPPK is received in complete form. (3) In approving or rejecting the request for approval of the establishment of the DPPK as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis of document completeness; b. competency and propriety assessment of prospective key parties; and
c. analysis of compliance with legislation in the field of Pension Funds.
(4) The Financial Services Authority may conduct an inspection at the DPPK office to ensure the operational readiness of the DPPK.
(5) In the event that based on the results of the Financial Services Authority's analysis as referred to in paragraph (3) there are missing documents, the Founder must submit complete documents no later than 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (6) In the event that the Founder has submitted complete documents as referred to in paragraph (5), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (2). (7) If the Founder does not submit complete documents as referred to in paragraph (5), the Founder is deemed to have cancelled the request for approval of the establishment of the DPPK. (8) In the event that the request for approval of the establishment of the DPPK as referred to in paragraph (2) is approved, the Financial Services Authority establishes a decision granting approval of establishment to the DPPK. (9) In the event that the Financial Services Authority rejects the request for approval of the establishment of the DPPK as referred to in paragraph (2), the rejection is communicated in writing accompanied by the reasons for rejection.

Article 11
(1) In the event that the Financial Services Authority has approved the request for approval of the establishment of the DPPK as referred to in Article 10 paragraph (8), the DPPK has the status of a legal entity and can start its activities as a DPPK since the date of approval of the establishment of the DPPK by the Financial Services Authority. (2) The Manager is required to announce the establishment of the DPPK by placing the Financial Services Authority's approval of the PDP in the State Gazette of the Republic of Indonesia. (3) The announcement request as referred to in paragraph (2) must be done by the Manager no later than 15 (fifteen) working days from the date of approval of the establishment of the DPPK by the Financial Services Authority as referred to in Article 10 paragraph (8).

Paragraph 3
Establishment of DPLK

Article 12
(1) DPLK as referred to in Article 5 paragraph (2) can only implement PPIP.
(2) The Founder submits a request for approval of the establishment of the DPLK to the Financial Services Authority.
(3) The request as referred to in paragraph (2) must use the request form for approval of the establishment of the DPLK contained in the Appendix in Roman numeral II, which is an integral part of this Financial Services Authority Regulation, by attaching:
a. PDP; b. written statement of the Founder;
c. letter of appointment of the Manager, Supervisory Board, and/or Sharia Supervisory Board;
d. organizational structure and human resources of the DPLK equipped with job descriptions; e. letter of business license approval of the Founder; f. financial reports audited by a public accountant for 2 (two) consecutive years prior to the application; g. study on the establishment of the DPLK as referred to in Article 7 paragraph (1) letter g; h. proof of operational readiness to implement the DPLK at least containing:

DPLK work program;
forms or documents to be used for DPLK participation; and
guidelines for implementing anti-money laundering, counter-terrorism financing, and counter-proliferation financing programs in the financial service sector for the DPLK;
i. written recommendation from the Financial Services Authority supervisor;
j. proof of DPLK system readiness; k. proof of payment settlement for licensing fees for the approval of the establishment of the DPLK; and
l. other documents needed in accordance with the program implementation and/or other benefits being applied for.
(4) The DPLK work program as referred to in paragraph (3) letter h number 1 is prepared for a minimum period of the first 5 (five) years and contains:
a. prospective DPLK Participants, both individuals or groups or Employers who will participate in the Pension Program, and steps taken to achieve this; and b. projection of costs required by the DPLK and the amount of service fees to be received by the Founder for the implementation of the DPLK. (5) The request for approval of the establishment of the DPLK as referred to in paragraph (2) is submitted simultaneously with the request for competency and propriety assessment for prospective Managers, Supervisory Boards, and/or Sharia Supervisory Boards in accordance with Financial Services Authority Regulations concerning competency and propriety assessments for key parties of financial service institutions.

Article 13
The written statement of the Founder as referred to in Article 12 paragraph (3) letter b contains:
a. summary of the PDP; b. decision to finance the implementation of the DPLK in accordance with legislation in the fields of Pension Funds and PDP; and
c. commitment of the Founder regarding funding support and/or infrastructure support for the DPLK.

Article 14
(1) The Financial Services Authority has the authority to approve or reject the request for approval of the establishment of the DPLK as referred to in Article 12 paragraph (2). (2) The Financial Services Authority approves or rejects the request for approval of the establishment of the DPLK as referred to in paragraph (1) within a maximum of 3 (three) months since the request for approval of the establishment of the DPLK is received in complete form. (3) In approving or rejecting the request for approval of the establishment of the DPLK as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis of document completeness; b. competency and propriety assessment of prospective key parties; and
c. analysis of compliance with legislation in the field of Pension Funds.
(4) The Financial Services Authority may conduct an inspection at the DPLK office to ensure the operational readiness of the DPLK.
(5) In the event that based on the results of the Financial Services Authority's analysis as referred to in paragraph (3) there are missing documents, the Founder must submit complete documents no later than 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (6) In the event that the Founder has submitted complete documents as referred to in paragraph (5), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (2). (7) If the Founder does not submit complete documents as referred to in paragraph (5), the Founder is deemed to have cancelled the request for approval of the establishment of the DPLK. (8) In the event that the request for approval of the establishment of the DPLK as referred to in paragraph (2) is approved, the Financial Services Authority establishes a decision granting approval of establishment to the DPLK. (9) In the event that the Financial Services Authority rejects the request for approval of the establishment of the DPLK as referred to in paragraph (2), the rejection is communicated in writing accompanied by the reasons for rejection.

Article 15
(1) In the event that the Financial Services Authority has approved the request for approval of the establishment of the DPLK as referred to in Article 14 paragraph (8), the DPLK has the status of a legal entity and can start its activities as a DPLK since the date of approval of the establishment of the DPLK by the Financial Services Authority. (2) The Manager is required to announce the establishment of the DPLK by placing the Financial Services Authority's approval of the PDP in the State Gazette of the Republic of Indonesia. (3) The announcement request as referred to in paragraph (2) must be done by the Manager no later than 15 (fifteen) working days from the date of approval of the establishment of the DPLK by the Financial Services Authority as referred to in Article 14 paragraph (8).

Paragraph 4
Establishment of Pension Funds Implementing Pension Programs Based on Sharia Principles

Article 16
Pension Funds can implement Pension Programs Based on Sharia Principles in the form of:
a. Pension Funds where all activities are based on Sharia Principles; b. Sharia Units in DPPK; or
c. sale of Sharia investment packages in DPLK.

Article 17
Pension Funds whose entire activities are based on Sharia Principles as referred to in Article 16 letter a may be formed through a petition:
a. approval of the formation of a Pension Fund whose entire activities are based on Sharia Principles as referred to in Article 3 to Article 15; or b. conversion of a conventional Pension Fund into a Pension Fund whose entire activities are based on Sharia Principles.

Article 18
(1) Conversion of a conventional Pension Fund into a Pension Fund whose entire activities are based on Sharia Principles as referred to in Article 17 letter b is carried out by the Founder by submitting a petition for approval of changes to the Pension Fund Deed (PDP) to the Financial Services Authority (OJK). (2) The petition for approval of changes to the PDP as referred to in paragraph (1) must attach additional documents in the form of:
a. adjustment of Pension Fund assets that are not in accordance with Sharia Principles so that they are in accordance with Sharia Principles; b. proof of notification regarding the conversion plan to Pension Fund Participants;
c. Investment Guidelines, for Collective Pension Funds (DPPK);
d. founder's decision letter on the appointment of the Sharia Supervisory Board; e. proof of expertise in the field of Pension Funds and Sharia finance from at least 1 (one) Manager; and f. organizational structure and human resources of the Pension Fund whose entire activities are based on Sharia Principles, completed with job descriptions. (3) The petition for approval of changes to the PDP as referred to in paragraph (1) is submitted simultaneously with the petition for fitness and propriety assessment for the prospective Sharia Supervisory Board members in accordance with the Financial Services Authority Regulation regarding the fitness and propriety assessment for key parties of financial service institutions.

Article 19
(1) The formation of a Sharia Unit in a Collective Pension Fund (DPPK) as referred to in Article 16 letter b can only be carried out for the implementation of Individual Pension Programs (PPIP). (2) A DPPK that forms a Sharia Unit as referred to in paragraph (1) must meet the following requirements:
a. has DPPK Managers appointed as managers of the Sharia Unit; b. has prospective Participants for the Sharia Unit;
c. separates the assets and liabilities of the Sharia Unit from the assets and liabilities of the DPPK other than the Sharia Unit; and
d. organizational structure and human resources of the DPPK completed with job descriptions.
(3) In the event that prospective Participants for the Sharia Unit as referred to in paragraph (2) letter b come from existing DPPK Participants prior to the formation of the Sharia Unit, the DPPK is required to:
a. provide information to the relevant Participants that their participation will be transferred to the Sharia Unit; and b. request a statement of willingness from each Participant who will transfer to become a Sharia Unit Participant.

Article 20
(1) The formation of a Sharia Unit as referred to in Article 19 paragraph (1) is carried out by the Founder by submitting a petition for approval of changes to the PDP to the Financial Services Authority (OJK). (2) The petition for approval of changes to the PDP as referred to in paragraph (1) must contain the minimum content of the PDP in accordance with this Financial Services Authority Regulation and be added with content regarding the assets and liabilities of the Sharia Unit. (3) The petition for approval of changes to the PDP as referred to in paragraph (1) must attach additional documents in the form of:
a. Investment Guidelines; b. proof of notification of information to Participants;
c. Founder's statement regarding the number of prospective Sharia Unit Participants and Sharia Unit assets;
d. statement from DPPK Participants that they choose to become Sharia Unit Participants; e. founder's decision letter on the appointment of the manager of the Sharia Unit; f. proof of expertise in the field of Pension Funds and Sharia finance for Managers appointed by the Founder as managers of the Sharia Unit; and g. founder's decision letter on the appointment of the Sharia Supervisory Board. (4) The petition for approval of changes to the PDP as referred to in paragraph (1) is submitted simultaneously with the petition for fitness and propriety assessment for the prospective Sharia Supervisory Board members in accordance with the Financial Services Authority Regulation regarding the fitness and propriety assessment for key parties of financial service institutions.

Article 21
(1) In the event that there are Participants who choose to become Sharia Unit Participants, the DPPK is required to separate the assets and liabilities of Participants who choose the Sharia Unit no later than 6 (six) months from the date of approval of changes to the PDP. (2) The separation of assets and liabilities as referred to in paragraph (1) is carried out proportionally and is regulated in the PDP. (3) In the event that the Founder of the DPPK permits the transfer of DPPK participation to the Sharia Unit after the Sharia Unit is formed, the mechanism for such participation transfer must first be regulated in the PDP.

Article 22
(1) The sale of Sharia investment packages in Individual Pension Funds (DPLK) as referred to in Article 16 letter c is carried out by the Founder by submitting a petition for approval of changes to the PDP to the Financial Services Authority (OJK). (2) The petition for approval of changes to the PDP as referred to in paragraph (1) must attach additional documents in the form of:
a. proof of expertise in the field of Pension Funds and Sharia finance from at least 1 (one) Manager; and b. founder's decision letter on the appointment of the Sharia Supervisory Board. (3) The petition for approval of changes to the PDP as referred to in paragraph (1) is submitted simultaneously with the petition for fitness and propriety assessment for the prospective Sharia Supervisory Board members in accordance with the Financial Services Authority Regulation regarding the fitness and propriety assessment for key parties of financial service institutions.

Article 23
(1) The Financial Services Authority has the authority to approve or reject petitions for approval of changes to the PDP as referred to in Article 18 paragraph (1), Article 20 paragraph (1), and Article 22 paragraph (1). (2) The Financial Services Authority approves or rejects petitions for approval of changes to the PDP as referred to in paragraph (1) no later than 3 (three) months from the date the petition for approval of changes to the PDP is received in complete form. (3) In approving or rejecting petitions for approval of changes to the PDP as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis of document completeness; b. fitness and propriety assessment of prospective key parties; and
c. analysis of compliance with regulations in the field of Pension Funds.
(4) The Financial Services Authority may conduct inspections at the offices of Pension Funds whose entire activities are based on Sharia Principles to ensure operational readiness. (5) In the event that based on the results of the Financial Services Authority's analysis as referred to in paragraph (3) there are missing documents, the Founder must submit complete documents no later than 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (6) In the event that the Founder has submitted complete documents as referred to in paragraph (5), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (2). (7) If the Founder does not submit complete documents as referred to in paragraph (5), the Founder is deemed to have cancelled the petition for approval of changes to the PDP. (8) In the event that the petition for approval of changes to the PDP as referred to in paragraph (2) is approved, the Financial Services Authority establishes a decision granting approval of changes to the PDP for:
a. conversion of a conventional Pension Fund into a Pension Fund whose entire activities are based on Sharia Principles; b. formation of a Sharia Unit in a DPPK; or
c. sale of Sharia investment packages in a DPLK.
(9) In the event that the Financial Services Authority rejects the petition for approval of changes to the PDP as referred to in paragraph (2), the rejection is communicated in writing accompanied by the reasons for rejection.

Article 24
(1) In the event that the Financial Services Authority has approved the petition for approval of changes to the PDP as referred to in Article 23 paragraph (8), the Pension Fund may commence its activities as a Pension Fund implementing a Sharia-Based Pension Program since the date of approval of changes to the PDP by the Financial Services Authority. (2) Managers are required to announce the approval of changes to the PDP by placing the Financial Services Authority's approval of the PDP in the State Gazette of the Republic of Indonesia. (3) The announcement petition as referred to in paragraph (2) must be carried out by the Managers no later than 15 (fifteen) working days from the date of approval of changes to the PDP by the Financial Services Authority as referred to in Article 23 paragraph (8).

Third Section
Administrative Sanctions

Article 25
(1) Violations of the provisions as referred to in Article 11 paragraph (2), paragraph (3), Article 15 paragraph (2), paragraph (3), Article 19 paragraph (3), Article 21 paragraph (1), and/or Article 24 paragraph (2), paragraph (3) are subject to administrative sanctions in the form of:
a. written warning; b. prohibition on implementing certain programs; and/or
c. downgrade of health level.
(2) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been rectified, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that violations of the provisions as referred to in paragraph (1) have been fulfilled, the Financial Services Authority revokes the administrative sanctions imposed.

Fourth Section
Re-assessment of Key Parties

Article 26
In addition to imposing administrative sanctions as referred to in Article 25 paragraph (1), the Financial Services Authority has the authority to conduct re-assessment of key parties.

CHAPTER III
PENSION FUND REGULATIONS

First Section
Minimum Content of the Pension Fund Deed (PDP)

Paragraph 1
Minimum Content of the PDP for Collective Pension Funds (DPPK)

Article 27
(1) The PDP of a DPPK must at least contain:
a. name of the DPPK; b. domicile of the DPPK;
c. name of the Founder;
d. date of formation of the DPPK; e. purpose and objectives of the formation of the DPPK; f. formation of DPPK assets separated from the Employer's assets; g. number of Managers, Supervisory Board, and/or Sharia Supervisory Board; h. procedures for appointment, replacement, and re-appointment of Managers, Supervisory Board, and/or Sharia Supervisory Board;
i. term of office for Managers, Supervisory Board, and/or Sharia Supervisory Board;
j. rights, obligations, and responsibilities of the Founder, Managers, Supervisory Board, Sharia Supervisory Board, Participants, and Employers, including the Employer's obligation to pay contributions; k. requirements to become a Participant;
l. procedures for appointment and replacement of Entitled Parties;
m. name of Partner Founders, if any; n. employees or groups of employees entitled to become Participants; o. Normal Retirement Age; p. early retirement age; q. regulation of Participant's length of service; r. minimum contribution amount; s. formula for Pension Benefits and factors affecting its calculation; t. amount of Pension Benefit increase determination, if any; u. procedures for payment of Pension Benefits;
v. other Pension Benefit implementations and/or other benefits, if any;
w. the deed used for DPPK implementing a Sharia-Based Pension Program;
x. provisions regarding sanctions (ta'zir) for DPPK implementing a Sharia-Based Pension Program; and
y. costs that are the burden of the DPPK.
(2) In the event that a DPPK implements 2 (two) types of Pension Programs, the DPPK must prepare the minimum content of the PDP for each type of Pension Program, except for the provisions as referred to in paragraph (1) letters a to l.

Paragraph 2
Minimum Content of the PDP for Individual Pension Funds (DPLK)

Article 28
The PDP of a DPLK must at least contain:
a. name of the DPLK; b. domicile of the DPLK;
c. name of the Founder;
d. date of formation of the DPLK; e. purpose and objectives of the formation of the DPLK; f. formation of DPLK assets separated from the Founder's assets; g. number of Managers, Supervisory Board, and/or Sharia Supervisory Board; h. procedures for appointment, replacement, and re-appointment of Managers, Supervisory Board, and/or Sharia Supervisory Board;
i. term of office for Managers, Supervisory Board, and/or Sharia Supervisory Board;
j. rights, obligations, and responsibilities of the Founder, Managers, Supervisory Board, and/or Sharia Supervisory Board; k. requirements to become a Participant;
l. procedures for appointment and replacement of Entitled Parties;
m. Normal Retirement Age; n. early retirement age; o. Participant's right to determine Normal Retirement Age as long as it does not conflict with regulations in the field of Pension Funds; p. the deed used for DPLK implementing a Sharia-Based Pension Program; q. contribution amount; r. other Pension Benefit implementations and/or other benefits, if any; s. Participant's right to determine the type of investment available; t. types of investments available for Participants, and procedures for selection and changes; u. procedures for determining the accumulated fund value for each Participant;
v. procedures for payment of Pension Benefits;
w. procedures for transfer of participation from and/or to other Pension Funds;
x. special provisions for groups of Participants included by the Employer; and
y. costs that can be charged to Participants or borne on Participant accounts.

Paragraph 3
Minimum Content of the PDP in the Implementation of Voluntary Participant Contributions

Article 29
In the event that a Pension Fund implements Voluntary Participant Contributions, the Pension Fund must meet the minimum content of the PDP as referred to in Article 27 and Article 28, and be added with content regarding:
a. frequency and mechanism for payment of Voluntary Participant Contributions; b. costs charged for the management of Voluntary Participant Contributions;
c. mechanism for distribution of the development results of Voluntary Participant Contributions to each Participant's account; and
d. mechanism for payment of Pension Benefits originating from the accumulation of Voluntary Participant Contributions and their development results.

Second Section
Changes to the PDP

Paragraph 1
General

Article 30
(1) The Founder submits a petition for approval of changes to the PDP to the Financial Services Authority (OJK).
(2) Changes to the PDP as referred to in paragraph (1) do not reduce Pension Benefits that have become the rights of Participants obtained during their participation up to the date of OJK approval. (3) Participant rights prior to changes to the PDP as referred to in paragraph (2) must be fulfilled up to the date of approval of changes to the PDP by the Financial Services Authority. (4) All changes to the PDP as referred to in paragraph (1) can only be implemented if they have received approval from the Financial Services Authority.

Paragraph 2
Approval of Changes to the PDP

Article 31
(1) The petition as referred to in Article 30 paragraph (1) must use the petition form for approval of changes to the PDP contained in the Appendix in Roman numeral III which is an inseparable part of this Financial Services Authority Regulation, by attaching documents:
a. new PDP; b. written statement from the Founder;
c. comparison of main changes to the PDP containing old regulations, new regulations, and reasons for changes, for provisions that are changed; and
d. other documents needed in accordance with the program implementation and/or other benefits being submitted.
(2) The written statement from the Founder as referred to in paragraph (1) letter b contains:
a. decision to implement the new PDP; and b. decision to finance the implementation of the Pension Fund in accordance with regulations in the field of Pension Funds and the PDP.

Article 32
(1) The Financial Services Authority has the authority to approve or reject petitions for approval of changes to the PDP as referred to in Article 30 paragraph (1). (2) The Financial Services Authority approves or rejects petitions for approval of changes to the PDP as referred to in paragraph (1) no later than 3 (three) months from the date the petition for approval of changes to the PDP is received in complete form. (3) In approving or rejecting petitions for approval of changes to the PDP as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis of document completeness; and b. analysis of compliance with regulations in the field of Pension Funds.
(4) In the event that based on the results of the Financial Services Authority's analysis as referred to in paragraph (3) there are missing documents, the Founder must submit complete documents no later than 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (5) In the event that the Founder has submitted complete documents as referred to in paragraph (4), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (2). (6) If the Founder does not submit complete documents as referred to in paragraph (4), the Founder is deemed to have cancelled the petition for approval of changes to the PDP. (7) In the event that the petition for approval of changes to the PDP as referred to in paragraph (2) is approved, the Financial Services Authority establishes a decision granting approval of changes to the PDP to the Pension Fund. (8) In the event that the Financial Services Authority rejects the petition for approval of changes to the PDP as referred to in paragraph (2), the rejection is communicated in writing accompanied by the reasons for rejection.

Article 33
(1) In the event that the Financial Services Authority has approved the petition for approval of changes to the PDP as referred to in Article 32 paragraph (7), changes to the PDP take effect from the date of approval by the Financial Services Authority. (2) Managers are required to announce the approval of changes to the PDP by placing the Financial Services Authority's approval of the PDP in the State Gazette of the Republic of Indonesia. (3) The announcement petition as referred to in paragraph (2) must be carried out by the Managers no later than 15 (fifteen) working days from the date of approval of changes to the PDP by the Financial Services Authority as referred to in Article 32 paragraph (7).

Paragraph 3
Changes to the PDP Resulting in Funding Changes

Article 34
(1) In the event that changes to the PDP result in funding changes, the Founder submits a petition for approval of changes to the PDP as referred to in Article 31 paragraph (1) and must:
a. ensure that changes to the PDP remain in accordance with promises regarding Pension Benefits regulated in the work agreement between the Employer and Participants, company regulations, and/or other legal documents; and b. attach additional documents in the form of:

approval from the company owner or general meeting of shareholders or equivalent for the written statement from the Founder, in the event that funding changes impact funding for Founder Participants;
approval from the company owner or general meeting of shareholders or equivalent for the written statement from Partner Founders, in the event that funding changes impact funding for Partner Founder Participants;
Actuarial Report, for DPPK implementing Defined Benefit Pension Programs (PPMP) or other defined benefit programs; and
agreement between:
a) Employer; and b) Participants and Entitled Parties, in the event that changes to the PDP reduce Pension Benefits that meet the provisions as referred to in Article 30 paragraph (2). (2) The Actuarial Report as referred to in paragraph (1) letter b number 3 is prepared in accordance with the Financial Services Authority Regulation regarding the implementation of Pension Fund business.

Paragraph 4
Changes to the PDP for Pension Program Changes

Article 35
(1) In the event that a Pension Program change is carried out from PPMP to PPIP, the Founder submits a petition for approval of changes to the PDP as referred to in Article 31 paragraph (1) and attaches additional documents in the form of:
a. approval from the company owner or general meeting of shareholders or equivalent for the written statement from the Founder; b. written statement from Partner Founders, if any;
c. approval from the company owner or general meeting of shareholders or equivalent for the written statement from Partner Founders, if any;
d. audited financial statements; e. Actuarial Report; and f. agreement between:

Employer; and
Participants and Entitled Parties.
(2) The audited financial statements as referred to in paragraph (1) letter d and the Actuarial Report as referred to in paragraph (1) letter e are prepared in accordance with the Financial Services Authority Regulation regarding the implementation of Pension Fund business. (3) The agreement as referred to in paragraph (1) letter f is set forth in a written document at least containing:
a. change of Pension Program from PPMP to PPIP; b. rights of Participants and Entitled Parties; and
c. use of surplus, if any.
(4) In the event that the petition for approval of changes to the PDP as referred to in paragraph (1) has been approved, the Pension Fund is required to submit:
a. audited financial statements; and b. Actuarial Report, by the date of approval to the Financial Services Authority no later than 2 (two) months from the date of approval.

Article 36
(1) In the event that a Pension Program change is carried out from PPIP to PPMP, the Founder submits a petition for approval of changes to the PDP as referred to in Article 31 paragraph (1) and attaches additional documents in the form of:
a. approval from the company owner or general meeting of shareholders or equivalent for the written statement from the Founder; b. written statement from Partner Founders, if any;
c. approval from the company owner or general meeting of shareholders or equivalent for the written statement from Partner Founders, if any;
d. audited financial statements; and e. Actuarial Report.
(2) The audited financial statements as referred to in paragraph (1) letter d and the Actuarial Report as referred to in paragraph (1) letter e are prepared in accordance with the Financial Services Authority Regulation regarding the implementation of Pension Fund business. (3) The PDP for program changes as referred to in paragraph (1) must contain:
a. minimum content of the PDP as referred to in Article 27 paragraph (1); and b. list of accumulated fund balances for each Participant as of the date of program change based on financial statements audited by a public accountant.

Paragraph 5
Changes to the PDP for Termination of Partner Founders

Article 37
(1) In the event that changes to the PDP are carried out for the termination of Partner Founders in a DPPK implementing PPMP, the Founder submits a petition for approval of changes to the PDP as referred to in Article 31 paragraph (1) and must attach additional documents in the form of:
https://jdih.ojk.go.id/

a. a written statement from the Founder regarding the termination of employee membership with the Founding Partner; b. audited financial statements;
c. Actuarial Report; and
d. an agreement between:

the Employer; and
the Participant and the Entitled Party.
(2) The financial report as referred to in paragraph (1) letter b is a financial report presenting the assets of the Founding Partner whose membership is terminated. (3) The Actuarial Report as referred to in paragraph (1) letter c is prepared in accordance with the Financial Services Authority Regulation regarding the conduct of Pension Fund business. (4) The agreement as referred to in paragraph (1) letter d is set forth in a written document containing at least:
a. the rights of Participants and the Entitled Party; and b. the use of surplus, if any.
(5) In the event of changes to the Pension Fund Program Agreement (PDP) are made to terminate the Founding Partner's membership in the Pension Fund Management Company (DPPK) that administers the Individual Pension Program (PPIP), the Founder submits a request for approval of changes to the PDP as referred to in Article 31 paragraph (1) and must attach additional documents in the form of:
a. a written statement from the Founder regarding the termination of employee membership with the Founding Partner; and b. audited financial statements. (6) The financial report as referred to in paragraph (5) letter b is a financial report presenting assets and liabilities as well as the list of accumulated fund balances for each Participant from the Founding Partner whose membership is terminated. (7) In the event of the termination of the Founding Partner's membership at the request of the Founding Partner, in addition to submitting the additional documents as referred to in paragraph (1) and paragraph (5), a document in the form of a statement from the terminating Founding Partner must be submitted regarding:
a. the termination of membership in the DPPK; and b. commitment to settle Participant rights in accordance with applicable legislation in the field of Pension Funds.

Paragraph 6
Changes to the PDP for
Addition of Founding Partners to the DPPK

Article 38
(1) In the event that the DPPK adds a Founding Partner, the Founder submits a request for approval of changes to the PDP as referred to in Article 31 paragraph (1) and attaches additional documents in the form of:
a. a written statement from the Founder regarding their willingness to accept membership of a new Founding Partner; b. a written statement from the Founding Partner regarding:

the participation of employees as Participants of the DPPK;
willingness to follow applicable legislation in the field of Pension Funds and the PDP established by the Founder of the DPPK; and
commitment to finance the implementation of the Pension Program and understand the consequences of late payment of contributions to the DPPK;
c. approval from the company owner, general meeting of shareholders, or equivalent body regarding the written statement of the Founding Partner; and
d. Actuarial Report, for DPPKs administering the Collective Pension Program (PPMP).
(2) The Actuarial Report as referred to in paragraph (1) letter d is prepared in accordance with the Financial Services Authority Regulation regarding the conduct of Pension Fund business.

Paragraph 7
Changes to the PDP for
Merger of Pension Funds

Article 39
(1) A DPPK that has been established may merge with another DPPK.
(2) The merger of DPPKs is carried out by submitting a request for approval of changes to the PDP as referred to in Article 31 paragraph (1).

Article 40
(1) The merger of DPPKs administering different programs may be carried out in the event that no Participants transfer programs.
(2) The DPPKs merging are declared dissolved without liquidation since the request for approval of changes to the PDP for the merger of DPPKs is approved by the Financial Services Authority.

Article 41
(1) In the event that 2 (two) or more legal entities as referred to in Article 5 paragraph (2) administering Collective Pension Funds (DPLK) merge, the DPLK administered by the merging legal entities must merge into the DPLK of the legal entity receiving the merger. (2) In the event of a merger of DPLKs as referred to in paragraph (1), the membership, obligations, and assets of the merging DPLK transfer to the DPLK of the legal entity receiving the merger. (3) The merger of DPLKs as referred to in paragraph (1) is submitted by the Founder to the Financial Services Authority by following the provisions for the request for approval of changes to the PDP as referred to in Article 31 paragraph (1). (4) The merger of DPLKs as referred to in paragraph (1) does not reduce the rights of Participants to transfer their membership to another Pension Fund. (5) The DPLK merging is declared dissolved without liquidation since the request for approval of changes to the PDP for the merger of DPLK is approved by the Financial Services Authority.

Article 42
(1) In the event that 2 (two) or more legal entities as referred to in Article 5 paragraph (2) administering DPLKs amalgamate, the DPLKs of the said legal entities must be amalgamated into 1 (one) DPLK. (2) Upon the formation of the legal entity resulting from the amalgamation, it results in:
a. the formation of a DPLK that receives and is responsible for the transfer of membership, obligations, and assets from the amalgamating DPLK; and b. the legal entity resulting from the amalgamation becoming the Founder of the DPLK as referred to in letter a. (3) The Founder of the DPLK as referred to in paragraph (2) is required to submit a request for approval of the PDP. (4) The formation of the DPLK resulting from the amalgamation as referred to in paragraph (1) does not reduce the rights of Participants to transfer their membership to another Pension Fund.

Paragraph 8
Changes to the PDP for
Separation of Pension Funds

Article 43
(1) A DPPK that has been established may separate itself into 2 (two) or more DPPKs.
(2) The separation of DPPKs is carried out by submitting a request for approval of changes to the PDP as referred to in Article 31 paragraph (1).

Article 44
(1) In the event that the separation of a DPPK administering the PPMP results in the formation of a DPPK administering the PPIP, in addition to submitting a request for approval of changes to the PDP as referred to in Article 31 paragraph (1), the Founder must attach additional documents in the form of an agreement between:
a. the Employer; and b. the Participant and the Entitled Party.
(2) The agreement as referred to in paragraph (1) is set forth in a written document containing at least:
a. the separation of the DPPK administering the PPMP results in the formation of a DPPK administering the PPIP; b. the rights of Participants and the Entitled Party; and
c. the use of surplus, if any.

Article 45
In the event that the separation is carried out by a Pension Fund whose entire activities are based on Sharia Principles and results in the formation of a new Pension Fund, the form of establishment can only be a Pension Fund whose entire activities are based on Sharia Principles.

Paragraph 9
Changes to the PDP for
Closure of Sharia Unit of DPPK

Article 46
(1) A DPPK may apply for the closure of the Sharia Unit in the event that it has no obligation to pay Pension Benefits.
(2) The closure of the Sharia Unit as referred to in paragraph (1) is carried out by submitting a request for approval of changes to the PDP as referred to in Article 31 paragraph (1).

Paragraph 10
Changes to the PDP for
Closure of Sale of Sharia Investment Packages of DPLK

Article 47
(1) The closure of the sale of DPLK Sharia investment packages is carried out by submitting a request for approval of changes to the PDP to the Financial Services Authority as referred to in Article 31 paragraph (1). (2) The request for approval of changes to the PDP as referred to in paragraph (1) must attach additional documents in the form of:
a. reasons or background for the closure of the sale of Sharia investment packages; and b. proof of socialization to Participants regarding the plan to close the sale of Sharia investment packages, in the event that there are still Participants. (3) In the event that the closure of the sale of Sharia investment packages has been determined by the Financial Services Authority and there are still Participants, the DPLK is required to transfer Participant assets from the Sharia investment package to a Pension Fund that administers a Pension Program Based on Sharia Principles. (4) The selection of the Pension Fund that administers a Pension Program Based on Sharia Principles as referred to in paragraph (3) must be done with the approval of the Participants. (5) The transfer of Participant assets from Sharia investment packages as referred to in paragraph (3) must be carried out at the latest 30 (thirty) days from the date of the determination of the closure of the sale of Sharia investment packages by the Financial Services Authority.

Part Three
Administrative Sanctions

Article 48
(1) Violations of the provisions as referred to in Article 30 paragraph (3), Article 33 paragraph (2), paragraph (3), Article 35 paragraph (4), Article 42 paragraph (3), and/or Article 47 paragraph (3), paragraph (4), paragraph (5) are subject to administrative sanctions in the form of:
a. written warning; b. prohibition to administer certain programs; and/or
c. downgrade of health level.
(2) In the event that a violation of the provisions as referred to in paragraph (1) occurs and the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the administrative sanction imposed.

Part Four
Re-evaluation of Key Parties

Article 49
In addition to imposing administrative sanctions as referred to in Article 48 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of key parties.

CHAPTER IV
ORGANIZATION AND HUMAN RESOURCES OF PENSION FUNDS

Part One
Organization of Pension Funds

Article 50
(1) The Organization of a Pension Fund must have the following functions:
a. risk management; b. finance and investment; and
c. services.
(2) The functions possessed by the Pension Fund as referred to in paragraph (1) are adjusted to the size, characteristics, and complexity of the Pension Fund. (3) In the event that the functions possessed by the Pension Fund as referred to in paragraph (1) do not yet correspond to the size, characteristics, and complexity of the Pension Fund, the Financial Services Authority may request the Pension Fund to adjust the functions possessed. (4) The Pension Fund is required to fulfill the request of the Financial Services Authority to adjust the functions possessed as referred to in paragraph (3). (5) The organization as referred to in paragraph (1) must be equipped with a written description of duties, authorities, responsibilities, and work procedures, which are established by the Board of Directors. (6) The Pension Fund is required to have an organization as referred to in paragraph (1) that reflects good internal control. (7) The Pension Fund is required to have employees responsible for the functions as referred to in paragraph (1).

Article 51
(1) The DPPK may outsource the administration of the DPPK to a third party.
(2) The outsourcing of administration as referred to in paragraph (1) is carried out to a third party with an outsourcing agreement. (3) The third party as referred to in paragraph (1) must meet the following requirements:
a. be a business entity in Indonesia; b. have a valid business license in accordance with its business field;
c. have human resources supporting the implementation of DPPK administration management; and
d. have facilities and infrastructure for DPPK administration management.
(4) The use of a third party as referred to in paragraph (1) does not reduce the duties and responsibilities of the Board of Directors.

Part Two
Reporting Changes to the Board of Directors, Board of Supervisors, and Sharia Supervisory Board

Article 52
(1) A Pension Fund that makes changes to the Board of Directors, Board of Supervisors, and/or Sharia Supervisory Board is required to report to the Financial Services Authority at the latest 15 (fifteen) working days calculated from the date of receipt of the Founder's determination regarding the changes to the Board of Directors, Board of Supervisors, and/or Sharia Supervisory Board by the Pension Fund. (2) The reporting of changes to the Board of Directors, Board of Supervisors, and/or Sharia Supervisory Board as referred to in paragraph (1) must attach documents:
a. the organization of the Pension Fund describing the structure, functions, description of duties, authorities, and responsibilities of the Board of Directors, Board of Supervisors, and/or Sharia Supervisory Board as well as working units under them; b. a list of members of the Board of Directors, Board of Supervisors, and/or Sharia Supervisory Board before and after the changes as well as the number and date of the results of the determination of approval of competence and suitability assessment; and
c. the decision letter of the Founder's determination regarding changes to the Board of Directors, Board of Supervisors, and/or Sharia Supervisory Board.

Part Three
Administrative Sanctions

Article 53
(1) Violations of the provisions as referred to in Article 50 paragraph (1), paragraph (4), paragraph (5), paragraph (6), paragraph (7), and/or Article 52 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. prohibition to administer certain programs; and/or
c. downgrade of health level.
(2) In the event that a violation of the provisions as referred to in paragraph (1) occurs and the violation has been corrected, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the administrative sanction imposed.

Part Four
Re-evaluation of Key Parties

Article 54
In addition to imposing administrative sanctions as referred to in Article 53 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of key parties.

CHAPTER V
GOOD CORPORATE GOVERNANCE FOR PENSION FUNDS

Part One
Implementation of Pension Fund Governance

Article 55
(1) A Pension Fund is required to implement Pension Fund Governance principles and effective risk management in every business activity at all levels or tiers of the organization. (2) A Pension Fund must be managed by prioritizing the interests of Participants and/or Entitled Parties regarding Pension Benefits as established in the PDP. (3) In implementing Pension Fund Governance principles as referred to in paragraph (1), the Pension Fund is required to have a Pension Fund Governance Guideline. (4) The implementation of the Pension Fund Governance Guideline as referred to in paragraph (3) is at least manifested in:
a. the implementation of duties and responsibilities of the Board of Directors, Board of Supervisors, and/or Sharia Supervisory Board; b. the implementation of risk management, including internal control systems, implementation of investment governance, and implementation of information technology governance;
c. the implementation of remuneration policies;
d. the Pension Fund business plan; e. transparency of the financial and non-financial conditions of the Pension Fund; and f. the implementation of anti-fraud strategies. (5) The Pension Fund Governance Guideline as referred to in paragraph (3) is prepared by the Board of Directors, reviewed by the Board of Supervisors, and established by the Founder.

Article 56
The implementation of Pension Fund Governance aims to:
a. optimize the value of the Pension Fund for stakeholders, specifically Participants and/or Entitled Parties; b. improve the management of Pension Funds professionally, effectively, and efficiently;
c. increase the compliance of Pension Funds and their subordinate levels so that in making decisions and carrying out actions are grounded in high ethics, compliance with applicable legislation, and awareness of the social responsibility of Pension Funds towards stakeholders and environmental sustainability;
d. realize a healthier, reliable, trustworthy, and competitive Pension Fund; and e. increase the contribution of Pension Funds to the national economy.

Article 57
The Founder, Founding Partners, Employers, Board of Directors, Board of Supervisors, Sharia Supervisory Board, and other parties related to the Pension Fund are responsible for the implementation of Pension Fund Governance in accordance with their functions and duties.

Part Two
Founders and Founding Partners

Article 58
(1) The Founder is responsible for the administration of the Pension Fund.
(2) The Founder appoints the Board of Directors, Board of Supervisors, and/or Sharia Supervisory Board to manage or supervise the administration of the Pension Fund. (3) The Founder may dismiss and change the composition of the Board of Directors, Board of Supervisors, and/or Sharia Supervisory Board. (4) The Founder and Founding Partners are required to support the implementation of Pension Fund Governance in the Pension Fund. (5) The Founder and Founding Partners are required to carry out their respective duties and responsibilities in accordance with the provisions in the PDP and applicable legislation in the field of Pension Funds. (6) The Founder and Founding Partners are required to follow up on:
a. audit findings and recommendations from the internal audit function of the Pension Fund; b. audit findings and recommendations from the external audit function of the Pension Fund; and/or
c. results of supervision by the Financial Services Authority, in accordance with the duties and responsibilities of the Founder and Founding Partners.
(7) The Founder provides human resources and infrastructure support for the operations and marketing of the Pension Fund.
(8) The realization of Founder support as referred to in paragraph (7) is reported in the business plan and the business realization report of the Pension Fund.

Part Three
Pension Fund Bodies

Paragraph 1
Board of Directors

Article 59
(1) A Pension Fund must have at least 2 (two) Board of Directors members.
(2) One of the Board of Directors members as referred to in paragraph (1) is appointed as the chairman.
(3) At least half of the number of Board of Directors members must have adequate competence in the field of investment and/or risk management. (4) Board of Directors members as referred to in paragraph (1) must be Indonesian citizens domiciled in Indonesia. (5) The term of office of Board of Directors members is at most 5 (five) years and may be appointed again. (6) The Board of Directors is appointed by and responsible to the Founder. (7) A Pension Fund may have more than 2 (two) Board of Directors members in accordance with the size, characteristics, and complexity of the Pension Fund while still paying attention to effectiveness in decision-making. (8) The Financial Services Authority may request the Pension Fund to increase the number of Board of Directors members to more than 2 (two) in the event that the number of Board of Directors members does not yet correspond to the size, characteristics, and complexity of the Pension Fund. (9) The Pension Fund is required to adjust the number of Board of Directors members in accordance with the request of the Financial Services Authority as referred to in paragraph (8).

Article 60
(1) The Board of Directors is required to meet the competence and suitability provisions and requirements established by the Financial Services Authority. (2) The fulfillment of the competence and suitability provisions and requirements as referred to in paragraph (1) is carried out in accordance with the Financial Services Authority Regulation regarding the assessment of competence and suitability for key parties of financial service institutions.

Article 61
(1) Board of Directors members who oversee the risk management function as referred to in Article 50 paragraph (1) letter a are prohibited from holding concurrent positions with Board of Directors members who oversee the finance and investment function as referred to in Article 50 paragraph (1) letter b. (2) Appointed Board of Directors members must have relevant competence and experience related to the field of their responsibility.

Article 62
Board of Directors members are prohibited from having family relationships up to the second degree with other Board of Directors members, Board of Supervisors, and/or Sharia Supervisory Board members in the same Pension Fund.

Article 63
The Board of Directors is required to carry out duties and responsibilities:
a. responsible for the management of the Pension Fund; b. prepare, evaluate, and implement the Pension Fund Governance Guideline;
c. prepare, evaluate, and implement guidelines related to the operational activities of the Pension Fund;
d. carry out the duties and responsibilities of the Board of Directors in accordance with the provisions in the PDP and applicable legislation in the field of Pension Funds; e. maintain books, records, and documents required for the management of the Pension Fund; f. follow up on:

audit findings and recommendations from the internal audit function of the Pension Fund;
audit findings and recommendations from the external audit function of the Pension Fund;
audit findings and recommendations from the Board of Supervisors;
audit findings and recommendations from the Sharia Supervisory Board related to the implementation of Sharia Principles; and/or
results of supervision by the Financial Services Authority;
g. ensure effective, accurate, and rapid decision-making and the ability to act independently, without interests that can interfere with the ability to carry out duties independently, objectively, and critically; h. act diligently, skillfully, wisely, and carefully in carrying out the responsibility of managing the Pension Fund;
i. ensure that the functions and duties of each working unit in the Pension Fund are clear so that each party can carry out their functions and duties well;
j. be accountable for the implementation of their duties to the Founder; k. ensure that the Pension Fund pays attention to the interests of all parties, especially Participants and/or Entitled Parties;
l. keep confidential personal information concerning each Participant in accordance with applicable legislation; and
m. ensure that information regarding the Pension Fund is provided to the Founder, Board of Supervisors, and/or Sharia Supervisory Board completely and on time.

Article 64
The Board of Directors is prohibited from:
a. conducting transactions that have conflicts of interest with the activities of the Pension Fund where the Board of Directors member serves; b. utilizing the Pension Fund for the interests of themselves, their families, and/or other parties that can harm the Pension Fund; and
c. taking and/or receiving personal benefits from the Pension Fund where the Board of Directors member serves other than remuneration and facilities established by the Founder.

Article 65
In addition to the duties and responsibilities as referred to in Article 63, the Board of Directors of DPLK is required to carry out duties and responsibilities:
a. ensure that Participants are given choices for investment packages or types suitable to them; b. ensure that Participants receive information regarding the possibility of arising loss risks from the choice of investment packages or types made by Participants through the Pension Fund;
c. ensure that the performance of the chosen investment packages or types is monitored well;
d. ensure that costs charged to Participants are disclosed in detail; and e. ensure that Participants are offered assistance in choosing investment packages or types.

Article 66
The Board of Directors is prohibited from holding concurrent positions as:
a. Board of Directors, Board of Supervisors, or Sharia Supervisory Board in another Pension Fund; b. Board of Supervisors or Sharia Supervisory Board in the same Pension Fund; or https://jdih.ojk.go.id/

c. The Board of Directors or executive positions in other business entities.

Article 67
The term of office of the Board of Trustees shall end when:
a. the term of office expires; b. the member dies;
c. the member resigns;
d. the member is dismissed by the Founder; or e. the member is sentenced to a criminal penalty that has obtained permanent legal force.

Article 68
The Board of Trustees, individually or jointly, are personally responsible for all losses arising in the Pension Fund's assets due to actions by the Board of Trustees that violate or neglect their duties and/or obligations as stipulated in the Pension Fund Regulations (PDP) and pension fund legislation, and are required to return to the Pension Fund all benefits obtained from or through the Pension Fund's assets unlawfully.

Article 69
(1) The Board of Trustees is required to hold Board of Trustees meetings periodically at least 1 (one) time in 1 (one) month.
(2) The results of the Board of Trustees meeting as referred to in paragraph (1) must be recorded in the Board of Trustees meeting minutes and documented properly. (3) Differences of opinion occurring in the Board of Trustees meeting decisions must be clearly stated in the Board of Trustees meeting minutes, accompanied by the reasons for the differences of opinion. (4) Board of Trustees members who are present or absent in the Board of Trustees meeting have the right to receive a copy of the Board of Trustees meeting minutes. (5) The number of Board of Trustees meetings held and the attendance of each Board of Trustees member must be included in the report on the implementation of Pension Fund Governance.

Article 70
Every strategic policy and decision must be decided through a Board of Trustees meeting.

Paragraph 2
Supervisory Board

Article 71
(1) A Pension Fund must have at least 2 (two) members of the Supervisory Board.
(2) One of the members of the Supervisory Board as referred to in paragraph (1) is designated as the chairman.
(3) The term of office of the Supervisory Board is at most 5 (five) years and can be re-designated.
(4) The Supervisory Board is designated by and responsible to the Founder.
(5) The designated Supervisory Board must have relevant competence and experience in the field under their responsibility.

Article 72
(1) Members of the Supervisory Board of a Closed Pension Fund (DPPK) must be Indonesian citizens.
(2) Members of the Supervisory Board of a Closed Pension Fund (DPPK) must have at least half of them domiciled in Indonesia.

Article 73
(1) One of the members of the Supervisory Board of an Open Pension Fund (DPLK) must come from an independent party.
(2) Members of the Supervisory Board of an Open Pension Fund (DPLK) must have at least half of them as Indonesian citizens.
(3) Members of the Supervisory Board of an Open Pension Fund (DPLK) must have at least half of them domiciled in Indonesia.

Article 74
(1) The Supervisory Board must meet the competence and propriety requirements and conditions stipulated by the Financial Services Authority (OJK). (2) The fulfillment of the competence and propriety requirements and conditions as referred to in paragraph (1) is carried out in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for key parties of financial service institutions.

Article 75
The Supervisory Board is prohibited from having family relations up to the second degree with other members of the Supervisory Board and/or the Board of Trustees in the same Pension Fund.

Article 76
Former Board of Trustees members must undergo a waiting period of at least 6 (six) months before becoming members of the Supervisory Board in the same Pension Fund.

Article 77
The Supervisory Board is required to carry out duties and responsibilities:
a. responsible for the supervision of the Pension Fund; b. monitoring the effectiveness of the implementation of Pension Fund Governance;
c. ensuring that the Pension Fund's internal controls have been implemented properly;
d. carrying out the duties and responsibilities of the Supervisory Board in accordance with the provisions in the PDP and pension fund legislation independently; e. appointing:

public accountants to audit the Pension Fund's financial reports; and
actuaries to prepare Actuarial Reports for DPPKs implementing PPMP;
f. recommending Investment Guidelines for DPPKs implementing PPMP to be established by the Founder; g. establishing Investment Guidelines jointly with the Founder for DPPKs implementing PPIP; h. ensuring that the Pension Fund's Board of Trustees has followed up on:
audit findings and recommendations from the Pension Fund's internal audit function;
audit findings and recommendations from the Pension Fund's external audit function;
audit findings and recommendations from the Supervisory Board;
audit findings and/or recommendations related to Sharia Principles from the Sharia Supervisory Board; and/or
supervision results from the Financial Services Authority and other institutions;
i. ensuring that internal and external audits have been carried out in accordance with applicable audit standards;
j. following up on:
audit findings and recommendations from the Pension Fund's internal audit function;
audit findings and recommendations from the Pension Fund's external audit function; and/or
supervision results from the Financial Services Authority, in accordance with the duties and responsibilities of the Supervisory Board;
k. guaranteeing effective, accurate, and swift decision-making and being able to act independently, without interests that can interfere with their ability to carry out duties independently, objectively, and critically;
l. supervising the Board of Trustees in maintaining the balance of interests of all parties, particularly the interests of Participants and/or Beneficiaries;
m. ensuring that the Pension Fund has a code of ethics as a guide for ethical behavior for the Board of Trustees, Supervisory Board, Sharia Supervisory Board, committee members, and all employees; n. formulating and applying Pension Fund supervision mechanisms; o. submitting annual written reports on supervision results to the Founder and copies announced to Participants, for DPPKs; p. formulating reports on the Supervisory Board's supervision results regarding the implementation of Pension Fund Governance, which is part of the Pension Fund Governance implementation report; and q. formulating reports on the evaluation of Pension Fund investment performance in accordance with Financial Services Authority Regulations regarding the conduct of Pension Fund businesses.

Article 78
The Supervisory Board has the right to obtain complete and timely information from the Board of Trustees regarding the Pension Fund.

Article 79
The Supervisory Board is prohibited from:
a. conducting transactions with conflicts of interest with the activities of the Pension Fund where the Supervisory Board serves; b. utilizing the Pension Fund for the interests of themselves, family, and/or other parties that can harm the Pension Fund;
c. taking and/or receiving personal benefits from the Pension Fund where the Supervisory Board serves, other than remuneration and facilities established by the Founder; and
d. interfering in the operational activities of the Pension Fund that are the responsibility of the Board of Trustees.

Article 80
(1) The Supervisory Board is prohibited from holding concurrent positions as:
a. Board of Trustees or Sharia Supervisory Board in the same Pension Fund; or b. Supervisory Board, Board of Trustees, or Sharia Supervisory Board in other Pension Funds. (2) The prohibition on concurrent positions as referred to in paragraph (1) letter b does not apply if the Founder where the Supervisory Board serves is part of the same financial group or conglomerate.

Article 81
The term of office of the Supervisory Board shall end when:
a. the term of office expires; b. the member dies;
c. the member resigns;
d. the member is dismissed by the Founder; or e. the member is sentenced to a criminal penalty that has obtained permanent legal force.

Article 82
(1) The Supervisory Board is required to hold Supervisory Board meetings periodically at least 1 (one) time in 3 (three) months.
(2) The Supervisory Board is required to hold Supervisory Board meetings inviting the Board of Trustees at least 1 (one) time in 3 (three) months. (3) The Supervisory Board must attend the Supervisory Board meetings as referred to in paragraph (1) and paragraph (2) at least 75% (seventy-five percent) of the total number of Supervisory Board meetings in a 1 (one) year period. (4) The results of the Supervisory Board meetings as referred to in paragraph (1) and paragraph (2) must be recorded in the Supervisory Board meeting minutes and documented properly. (5) Differences of opinion occurring in the decisions of the Supervisory Board meetings as referred to in paragraph (1) and paragraph (2) must be clearly stated in the Supervisory Board meeting minutes, accompanied by the reasons for the differences of opinion. (6) Supervisory Board members who are present or absent in the Supervisory Board meetings as referred to in paragraph (1) and paragraph (2) have the right to receive a copy of the Supervisory Board meeting minutes. (7) The number of Supervisory Board meetings held and the attendance of each Supervisory Board member must be included in the report on the implementation of Pension Fund Governance.

Paragraph 3
Sharia Supervisory Board

Article 83
(1) A Pension Fund implementing a Sharia-Based Pension Program must have a Sharia Supervisory Board.
(2) The Sharia Supervisory Board as referred to in paragraph (1) is part of the Pension Fund organ implementing the Sharia-Based Pension Program. (3) The Sharia Supervisory Board as referred to in paragraph (1) consists of Sharia experts designated by the Founder based on recommendations from institutions having authority in determining Sharia rulings. (4) The appointment of the Sharia Supervisory Board as referred to in paragraph (3) must be stated in a Founder's decision letter. (5) The content of the Founder's decision letter as referred to in paragraph (4) must contain at least the names of the Sharia Supervisory Board and the term of office of the Sharia Supervisory Board. (6) In the event that the number of Sharia Supervisory Board members is more than 1 (one), one of the members of the Sharia Supervisory Board is designated as the chairman. (7) Members of the Sharia Supervisory Board must have at least half of them as Indonesian citizens. (8) Members of the Sharia Supervisory Board must have at least half of them domiciled in Indonesia. (9) The term of office of the Sharia Supervisory Board is at most 5 (five) years and can be re-designated.

Article 84
(1) The Sharia Supervisory Board must meet the competence and propriety requirements and conditions stipulated by the Financial Services Authority (OJK). (2) The fulfillment of the competence and propriety requirements and conditions as referred to in paragraph (1) is carried out in accordance with the Financial Services Authority Regulation regarding the assessment of competence and propriety for key parties of financial service institutions.

Article 85
The Sharia Supervisory Board is prohibited from having family relations up to the second degree with other members of the Sharia Supervisory Board, Supervisory Board, and Board of Trustees in the same Pension Fund.

Article 86
The Sharia Supervisory Board is required to carry out duties and responsibilities:
a. carrying out the duties and responsibilities of the Sharia Supervisory Board in accordance with the provisions in the PDP and pension fund legislation; b. carrying out supervision duties, providing advice and suggestions to the Board of Trustees to ensure business activities comply with Sharia Principles;
c. supervising the Board of Trustees' follow-up on:

audit findings and recommendations from the Pension Fund's internal audit function;
audit findings and recommendations from the Pension Fund's external audit function;
audit findings and recommendations from the Supervisory Board;
audit findings and/or recommendations from the Sharia Supervisory Board; and/or
supervision results from the Financial Services Authority and other institutions,
regarding the implementation of Sharia Principles; d. following up on:
audit findings and recommendations from the Pension Fund's internal audit function;
audit findings and recommendations from the Pension Fund's external audit function; and/or
supervision results from the Financial Services Authority,
in accordance with the duties and responsibilities of the Sharia Supervisory Board; e. reporting violations related to the implementation of Sharia Principles in the supervised Pension Fund to the Board of Trustees; and f. formulating reports containing at least the compliance of the Sharia-Based Pension Program implementation with Sharia Principles.

Article 87
The Sharia Supervisory Board has the right to obtain complete and timely information from the Board of Trustees regarding the Pension Fund implementing the Sharia-Based Pension Program.

Article 88
The Sharia Supervisory Board is prohibited from:
a. conducting transactions with conflicts of interest with the activities of the Pension Fund where the Sharia Supervisory Board members serve; b. utilizing the Pension Fund for the interests of themselves, family, and/or other parties that can harm the Pension Fund; and
c. taking and/or receiving personal benefits from the Pension Fund where the Sharia Supervisory Board serves, other than remuneration and facilities established by the Founder.

Article 89
The Sharia Supervisory Board is prohibited from holding concurrent positions as:
a. Board of Trustees or Supervisory Board in the same Pension Fund; or b. members of the Sharia Supervisory Board in more than 4 (four) other financial institutions.

Article 90
The term of office of the Sharia Supervisory Board shall end when:
a. the term of office expires; b. the member dies;
c. the member resigns;
d. the member is dismissed by the Founder; e. the member is sentenced to a criminal penalty that has obtained permanent legal force; or f. the Sharia-Based Pension Program implemented by the Pension Fund ends.

Article 91
(1) The Sharia Supervisory Board is required to hold Sharia Supervisory Board meetings periodically at least 1 (one) time in 3 (three) months. (2) The results of the Sharia Supervisory Board meetings as referred to in paragraph (1) must be recorded in the Sharia Supervisory Board meeting minutes and documented properly. (3) Differences of opinion occurring in the decisions of the Sharia Supervisory Board meetings must be clearly stated in the Sharia Supervisory Board meeting minutes, accompanied by the reasons for the differences of opinion. (4) Sharia Supervisory Board members who are present or absent in the Sharia Supervisory Board meetings have the right to receive a copy of the Sharia Supervisory Board meeting minutes. (5) The number of Sharia Supervisory Board meetings held and the attendance of each Sharia Supervisory Board member must be included in the report on the implementation of Pension Fund Governance. (6) In the event that the number of Sharia Supervisory Board members is 1 (one), the Sharia Supervisory Board meeting as referred to in paragraph (1) is conducted together with the Supervisory Board meeting as referred to in Article 82 paragraph (1).

Part Four
Functions and Committees

Article 92
(1) In the implementation of Pension Fund Governance principles as referred to in Article 55 paragraph (1), Pension Funds are required to carry out the following functions:
a. internal audit; and b. compliance.
(2) In carrying out the functions as referred to in paragraph (1), Pension Funds with available assets exceeding IDR 500,000,000,000.00 (five hundred billion rupiah) are required to establish the following functions:
a. internal audit; and b. compliance.
(3) The establishment of functions as referred to in paragraph (2) for:
a. DPPK is done by the Board of Trustees; or b. DPLK is done by the Board of Trustees or merged with functions existing in the DPLK Founder. (4) The functions as referred to in paragraph (2) are carried out by different persons in charge for each function and can be carried out by 1 (one) or more operational units.

Article 93
(1) The internal audit function as referred to in Article 92 paragraph (1) letter a and paragraph (2) letter a is responsible for detailing the operational planning, implementation, and monitoring of audit results. (2) The compliance function as referred to in Article 92 paragraph (1) letter b and paragraph (2) letter b is responsible for ensuring that all Pension Fund activities comply with legislation, including Sharia Principles for Pension Funds implementing Sharia-Based Pension Programs, and managing compliance risks. (3) Employees carrying out the functions as referred to in Article 92 paragraph (2) are responsible to the Board of Trustees overseeing the risk management management function.

Article 94
(1) To support the effectiveness of carrying out duties and responsibilities, the Supervisory Board must carry out committee duties as follows:
a. audit committee; and b. risk monitoring committee.
(2) Pension Funds with available assets exceeding IDR 500,000,000,000.00 (five hundred billion rupiah) are required to establish a risk monitoring committee as referred to in paragraph (1) letter b.

Article 95
(1) The audit committee as referred to in Article 94 paragraph (1) letter a consists of at least:
a. 1 (one) member of the Supervisory Board; and b. 1 (one) other party outside the Pension Fund who has competence in the audit field. (2) The other party as referred to in paragraph (1) letter b does not have financial, management, and/or family relations with the Supervisory Board, Sharia Supervisory Board, Board of Trustees, and/or other relations that can influence their ability to act independently. (3) The audit committee as referred to in Article 94 paragraph (1) letter a serves as a facilitator for the Supervisory Board to ensure that:
a. the Pension Fund's internal control structure has been implemented properly; b. internal and external audits have been carried out in accordance with applicable audit standards; and
c. follow-up on audit findings is carried out by the Board of Trustees.

Article 96
(1) The risk monitoring committee as referred to in Article 94 paragraph (1) letter b consists of at least:
a. 1 (one) member of the Supervisory Board; and b. 1 (one) other party outside the Pension Fund who has competence in the risk monitoring field. (2) The other party as referred to in paragraph (1) letter b does not have financial, management, and/or family relations with the Supervisory Board, Sharia Supervisory Board, Board of Trustees, and/or other relations that can influence their ability to act independently. (3) The risk monitoring committee as referred to in Article 94 paragraph (1) letter b assists the Supervisory Board in monitoring the implementation of risk management formulated by the Board of Trustees and assessing the risk tolerance that can be taken by the Pension Fund.

Part Five
External Auditors and Actuaries

Article 97
(1) External auditors of Pension Funds must be appointed by the Supervisory Board from candidate external auditors proposed by the audit committee or the Supervisory Board carrying out the audit committee duties. (2) The appointment of external auditors of Pension Funds as referred to in paragraph (1) is carried out in accordance with Financial Services Authority Regulations regarding the use of public accountants and public accounting firms in financial service activities. (3) The proposal of candidate external auditors as referred to in paragraph (1) must be accompanied by:
a. reasons for nomination and the proposed honorarium or service fees for the external auditor; b. a statement of willingness signed by the external auditor, to be free from the influence of the Board of Trustees, Supervisory Board, Sharia Supervisory Board, and interested parties in the Pension Fund, and willingness to provide information related to audit results to the Financial Services Authority; and
c. a letter of registration with the Financial Services Authority.
(4) Pension Funds are required to provide all accounting records and supporting data needed by external auditors in auditing the Pension Fund's financial reports.

Article 98
(1) Actuaries must be appointed by the Supervisory Board of DPPK from candidate actuaries proposed by the Board of Trustees of DPPK. (2) The appointment of actuaries as referred to in paragraph (1) is carried out in accordance with Financial Services Authority Regulations regarding the registration and supervision of actuarial consultants, public accountants, and appraisers conducting activities in the non-bank financial industry. (3) The proposal of candidate actuaries as referred to in paragraph (1) must be accompanied by:
a. reasons for nomination and the proposed honorarium or service fees for the actuary; b. a statement of willingness signed by the actuary, to use applicable actuarial practice standards in Indonesia and willingness to provide information related to valuation results to the Financial Services Authority; and
c. a letter of registration with the Financial Services Authority.
(4) Pension Funds are required to provide all supporting data needed by actuaries in conducting actuarial valuations.

Part Six
Remuneration Practices and Policies

Article 99
(1) The Founder must have a remuneration policy for members of the Board of Trustees, Supervisory Board, and/or Sharia Supervisory Board that encourages behavior based on prudence principles aligned with the long-term interests of the Pension Fund and fair treatment of Participants and/or Beneficiaries. (2) Pension Funds must have a remuneration policy for employees that encourages behavior based on prudence principles aligned with the long-term interests of the Pension Fund and fair treatment of Participants and/or Beneficiaries. (3) Pension Funds must implement the remuneration policy as referred to in paragraph (1) and paragraph (2). (4) The remuneration policy as referred to in paragraph (1) and paragraph (2) must consider at least:
a. financial performance and fulfillment of Pension Fund obligations in accordance with legislation; b. individual performance;
c. fairness aspects; and
d. considerations of long-term targets and strategies of the Pension Fund.

Part Seven
Investment Governance

Paragraph 1
General

Article 100
(1) In conducting investment management, Pension Funds must apply prudence principles, prioritizing the interests of Participants and/or Beneficiaries and Sharia Principles for Pension Funds implementing Sharia-Based Pension Programs. (2) In applying prudence principles as referred to in paragraph (1), the Board of Trustees must formulate and implement Pension Fund investment guidelines. (3) Pension Fund investment guidelines as referred to in paragraph (2) must contain at least:
a. authority, authorization, and responsibilities of the Board of Trustees and Pension Fund employees; b. analysis processes in investment placement and divestment;
c. adequate monitoring and evaluation regarding investment portfolio management;
d. compatibility between the investment portfolio and the Pension Fund's liability profile; and e. investment risk management.
(4) In conducting investment placement, Pension Funds must consider the level of risk to be taken and risk tolerance according to the Pension Fund's conditions.

Paragraph 2
Investment Committee

Article 101
(1) To support the effectiveness of carrying out duties and responsibilities, Pension Funds with available assets exceeding IDR 500,000,000,000.00 (five hundred billion rupiah) are required to establish an investment committee. (2) In the event that Pension Funds as referred to in paragraph (1) only have investment portfolios consisting of:
a. time deposits;

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

b. deposit on call;
c. deposit certificates;
d. securities issued by Bank Indonesia; and/or e. government securities, are exempt from the obligation to form an investment committee. (3) The investment committee as referred to in paragraph (1) consists of at least:
a. 1 (one) Executive Member who oversees the finance and investment function; and b. 1 (one) Executive Member who oversees the risk management function. (4) Pension Funds may appoint parties outside the Pension Fund as the investment committee. (5) The investment committee as referred to in paragraph (1) is tasked with:
a. formulating investment policies; b. providing considerations related to investment placement and divestment decisions; and
c. supervising the implementation of established investment policies.

Part Eight
Information Technology Governance
Article 102
(1) Pension Funds are required to implement effective information technology governance.
(2) Information technology governance as referred to in paragraph (1) must contain at least:
a. the person responsible for the information system; b. guidelines for the use of information systems equipped with instructions or work orders for each function; and
c. data security management guidelines and incident management guidelines.
(3) In implementing information technology governance, Pension Funds are required to effectively implement risk management in the use of information technology. (4) The implementation of information technology risk management as referred to in paragraph (3) is carried out in accordance with the Financial Services Authority Regulation regarding the implementation of risk management in the use of information technology by non-bank financial service institutions.

Part Nine
Risk Management and Internal Control
Article 103
(1) Pension Funds are required to implement risk management by identifying, measuring, controlling, and monitoring business risks effectively. (2) Risk management as referred to in paragraph (1) must be adjusted to the objectives, business policies, size, characteristics, and complexity of the Pension Fund. (3) Provisions regarding risk management as referred to in paragraph (1) are implemented in accordance with the Financial Services Authority Regulation regarding the implementation of risk management for non-bank financial service institutions.

Article 104
(1) Executive Members are required to implement effective and efficient internal controls to provide reasonable assurance that business activities are carried out in accordance with objectives and strategies, other internal regulations of the Pension Fund, and applicable legislation. (2) Provisions regarding internal control as referred to in paragraph (1) are implemented in accordance with the Financial Services Authority Regulation regarding the implementation of risk management for non-bank financial service institutions.

Part Ten
Information Disclosure
Article 105
(1) Pension Funds are required to provide data and information to the Financial Services Authority completely and on time.
(2) Pension Funds are required to transparently inform Participants of every change to the Pension Fund Program (PDP).
(3) The submission of information regarding every change to the PDP as referred to in paragraph (2) must be submitted no later than 1 (one) month from the date of approval of the PDP change by the Financial Services Authority. (4) Pension Funds are required to provide information to Participants regarding rights arising from their participation at least every 3 (three) months through media accessible by Participants. (5) Information to Participants as referred to in paragraph (4) must contain at least information regarding the amount of funds accumulated and/or projections of the benefits to be received. (6) The submission of information to Participants as referred to in paragraph (4) does not apply if the media provided is an information technology system accessible by Participants at all times. (7) Pension Funds are required to have a reliable and trustworthy financial reporting system.

Article 106
In addition to meeting information disclosure requirements as referred to in Article 105, Pension Funds are required to apply consumer and community protection principles in accordance with the Financial Services Authority Regulation regarding consumer and community protection in the financial services sector.

Article 107
(1) In the event of important matters including:
a. resignation or dismissal of external auditors; b. material transactions with related parties;
c. conflicts of interest; and
d. other material information regarding the Pension Fund, Pension Funds are required to disclose this to the Financial Services Authority. (2) Disclosure as referred to in paragraph (1) is included in the report on the implementation of Pension Fund Governance.

Part Eleven
Relationship between Pension Funds and Stakeholders
Article 108
Pension Funds are required to:
a. respect the rights of stakeholders; and b. fulfill obligations arising from applicable legislation and/or agreements made with employees, Participants, Beneficiaries, and/or other stakeholders.

Part Twelve
Business Ethics
Article 109
(1) Executive Members, Supervisory Boards, Sharia Supervisory Boards, and Pension Fund employees are prohibited from giving or offering anything, directly or indirectly, to other parties, to influence decision-making related to the Pension Fund, in violation of applicable legislation. (2) Executive Members, Supervisory Boards, Sharia Supervisory Boards, and Pension Fund employees are prohibited from receiving anything for their personal benefit, in violation of applicable legislation, whether directly or indirectly, which can influence decision-making related to the Pension Fund.

Article 110
Pension Funds are required to formulate guidelines on ethical behavior, containing business ethics values, as a guide for Executive Members, Supervisory Boards, Sharia Supervisory Boards, Pension Fund employees, and committee members.

Part Thirteen
Self-Assessment and Report on the Implementation of Pension Fund Governance
Article 111
(1) Pension Funds are required to conduct a self-assessment of the implementation of Pension Fund Governance at least 1 (one) time in 1 (one) year. (2) Self-assessment of the implementation of Pension Fund Governance as referred to in paragraph (1) is conducted based on the Pension Fund Governance Guidelines.

Article 112
Pension Funds are required to formulate and submit a report on the implementation of Pension Fund Governance as part of the technical report in accordance with the Financial Services Authority Regulation regarding periodic Pension Fund reports.

Part Fourteen
Administrative Sanctions
Article 113
(1) Violations of the provisions as referred to in Article 55 paragraph (1), (2), (3), Article 58 paragraph (4), (5), (6), Article 59 paragraph (1), (3), (4), (9), Article 60 paragraph (1), Article 61 paragraph (1), Article 62, Article 63, Article 64, Article 65, Article 66, Article 68, Article 69 paragraph (1), (2), (3), Article 70, Article 71 paragraph (1), Article 72, Article 73, Article 74 paragraph (1), Article 75, Article 77, Article 79, Article 80 paragraph (1), Article 82 paragraph (1), (2), (3), (4), (5), Article 83 paragraph (1), (7), (8), Article 84 paragraph (1), Article 85, Article 86, Article 88, Article 89, Article 91 paragraph (1), (2), (3), Article 92 paragraph (1), (2), Article 94, Article 97 paragraph (1), (3), (4), Article 98 paragraph (1), (3), (4), Article 99 paragraph (1), (2), (3), Article 100 paragraph (1), (2), (4), Article 101 paragraph (1), Article 102 paragraph (1), (3), Article 103 paragraph (1), Article 104 paragraph (1), Article 105 paragraph (1), (2), (4), (7), Article 106, Article 107 paragraph (1), Article 108, Article 109, Article 110, Article 111 paragraph (1), and/or Article 112 are subject to administrative sanctions in the form of:
a. written warning; b. prohibition to carry out certain programs; and/or
c. downgrade of health level.
(2) In the event of a violation of the provisions as referred to in paragraph (1) and the violation has been corrected, the Financial Services Authority issues a written warning sanction that ends automatically. (3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the administrative sanction imposed.

Part Fifteen
Re-evaluation of Key Parties
Article 114
In addition to imposing administrative sanctions as referred to in Article 113 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of key parties.

CHAPTER VI
DISSOLUTION AND LIQUIDATION

Part One
Dissolution of Pension Funds
Article 115
(1) Dissolution of a Pension Fund may occur in the event of:
a. a request from the Founder to the Financial Services Authority; b. the dissolution of the Founder; or
c. based on the assessment of the Financial Services Authority:

the Pension Fund is unable to meet its obligations to Participants and Beneficiaries;
the cessation of contributions to the Pension Fund which may endanger the financial condition of the said Pension Fund; or
the Pension Fund has not operated for a period of 1 (one) year since its establishment.
(2) In the context of the dissolution of the Pension Fund as referred to in paragraph (1), the Financial Services Authority establishes:
a. the dissolution of the Pension Fund; and b. the Liquidator proposed by the Founder or proposed by the Founder's Liquidator.
(3) In the event that the dissolution of the Pension Fund occurs due to the conditions as referred to in paragraph (1) letter c, the Financial Services Authority appoints and establishes the Liquidator.

Part Two
Requirements and Procedures for Dissolution
Article 116
(1) In the event that the dissolution of the Pension Fund occurs due to a request from the Founder as referred to in Article 115 paragraph (1) letter a, the Founder submits a written application for the dissolution of the Pension Fund to the Financial Services Authority addressed to the Head of the Executive Supervisor for Insurance, Guarantee, and Pension Funds. (2) The written application for the dissolution of the Pension Fund as referred to in paragraph (1) must contain at least:
a. reasons or background for the dissolution of the Pension Fund; b. proof of socialization to Participants regarding the dissolution plan;
c. plan to settle obligations to Participants;
d. proposal of the name of the prospective Liquidator; and e. a statement from the Founder containing the substance if there are objections from Participants regarding the dissolution of the Pension Fund and the distribution of Participant rights, the Founder will be responsible for resolving the matter in accordance with applicable legislation. (3) The dissolution application as referred to in paragraph (2) is submitted by attaching documents:
a. photocopy of the prospective Liquidator's identity proof; b. curriculum vitae of the prospective Liquidator;
c. a statement letter from the prospective Liquidator containing:

willingness to be appointed as Liquidator; and
commitment to complete liquidation within the timeframe in the work plan;
d. integrity pact of the prospective Liquidator; and e. proof of settlement of Financial Services Authority levies and outstanding administrative fines.

Article 117
(1) The Financial Services Authority establishes the dissolution upon application as referred to in Article 116 paragraph (1) within a maximum of 20 (twenty) working days from the date the documents are received completely. (2) The establishment of dissolution as referred to in paragraph (1) must contain at least:
a. the effective date of the dissolution of the Pension Fund; b. the appointment of the Liquidator; and
c. the rights and obligations of the Liquidator.
(3) At the time of the Financial Services Authority's establishment as referred to in paragraph (2), the Pension Fund:
a. is required to stop all business activities of the Pension Fund; b. is required to append the phrase "in liquidation" after the name of the Pension Fund;
c. is not required to submit periodic reports to the Financial Services Authority in accordance with applicable legislation in the field of Pension Funds; and
d. closes the Sharia Unit, if any, from the date of the Financial Services Authority's establishment regarding the dissolution of the Pension Fund as referred to in paragraph (1) or from the effective date of the dissolution of the Pension Fund as referred to in paragraph (2) letter a, whichever is later. (4) In the event that there is a dissolution of a Pension Fund that administers a Sharia-Based Pension Program, the Liquidator carries out the liquidation process while considering Sharia Principles.

Article 118
(1) The Founder is deemed to have dissolved as referred to in Article 115 paragraph (1) letter b if:
a. the Founder is declared dissolved based on the dissolution procedures in the Founder's articles of association or applicable legislation; b. the Founder is declared dissolved by the competent authority in accordance with applicable legislation; or
c. the Founder's business license is revoked, in the event the Pension Fund is in the form of a DPLK.
(2) Pension Funds are required to report to the Financial Services Authority if the Founder meets the dissolution criteria as referred to in paragraph (1) letter a and/or paragraph (1) letter b. (3) In the event that the dissolution of the Pension Fund occurs due to the dissolution of the Founder as referred to in Article 115 paragraph (1) letter b, the Founder's Liquidator submits a written application for the dissolution of the Pension Fund to the Financial Services Authority addressed to the Head of the Executive Supervisor for Insurance, Guarantee, and Pension Funds within a maximum of 20 (twenty) working days from the formation of the Founder's Liquidator or the declaration of the Founder's dissolution. (4) In the event that there is no Founder's Liquidator, the submission of the application for dissolution of the Pension Fund as referred to in paragraph (3) is carried out by the Founder. (5) The written application for the dissolution of the Pension Fund as referred to in paragraph (3) must contain at least:
a. reasons or background for the dissolution of the Pension Fund; b. proof of submission of information to Participants regarding dissolution caused by the dissolution of the Founder;
c. proposal of the name of the prospective Liquidator; and
d. plan to settle obligations to Participants.
(6) The dissolution application as referred to in paragraph (5) is submitted by attaching documents:
a. legal basis for the dissolution of the Founder as referred to in paragraph (1) letter a and/or paragraph (1) letter b; b. photocopy of the prospective Liquidator's identity proof;
c. curriculum vitae of the prospective Liquidator;
d. a statement letter from the prospective Liquidator containing:

willingness to be appointed as Liquidator; and
commitment to complete liquidation within the timeframe in the work plan;
e. integrity pact of the prospective Liquidator; and f. proof of settlement of Financial Services Authority levies and outstanding administrative fines.

Article 119
(1) The Financial Services Authority establishes the dissolution upon application as referred to in Article 118 paragraph (3) within a maximum of 20 (twenty) working days from the date the documents are received completely. (2) The establishment of dissolution as referred to in paragraph (1) must contain at least:
a. the effective date of the dissolution of the Pension Fund; b. the appointment of the Liquidator; and
c. the rights and obligations of the Liquidator.
(3) At the time of the Financial Services Authority's establishment as referred to in paragraph (2), the Pension Fund:
a. is required to stop all business activities of the Pension Fund; b. is required to append the phrase "in liquidation" after the name of the Pension Fund;
c. is not required to submit periodic reports to the Financial Services Authority in accordance with applicable legislation in the field of Pension Funds; and
d. closes the Sharia Unit, if any, from the date of the Financial Services Authority's establishment regarding the dissolution of the Pension Fund as referred to in paragraph (1) or from the effective date of the dissolution of the Pension Fund as referred to in paragraph (2) letter a, whichever is later. (4) In the event that there is a dissolution of a Pension Fund that administers a Sharia-Based Pension Program, the Liquidator carries out the liquidation process while considering Sharia Principles.

Article 120
(1) In the event that the Founder's Liquidator or the Founder does not submit an application as referred to in Article 118 paragraph (3) and paragraph (4), the Financial Services Authority establishes the dissolution of the Pension Fund. (2) The establishment of the dissolution of the Pension Fund as referred to in paragraph (1) is accompanied by the appointment of a Liquidator. (3) The appointment of a Liquidator by the Financial Services Authority does not reduce the responsibility and obligations of the Founder and Supervisory Board regarding the implementation of liquidation in the Pension Fund.

Article 121
(1) In the event that a Pension Fund is declared unable to be rehabilitated in accordance with the Financial Services Authority Regulation regarding the determination of status and follow-up of supervision of non-bank financial service institutions, the Pension Fund is assessed to meet the conditions as referred to in Article 115 paragraph (1) letter c number 1 and number 2. (2) In the event that a Pension Fund does not carry out business activities in the field of Pension Funds for a period of 1 (one) year since its establishment, the Pension Fund is assessed to meet the conditions as referred to in Article 115 paragraph (1) letter c number 3. (3) Based on the fulfillment of conditions as referred to in paragraph (1) and paragraph (2), the Financial Services Authority establishes the dissolution. (4) The establishment of dissolution as referred to in paragraph (3) must contain at least:
a. the effective date of the dissolution of the Pension Fund; b. the appointment of the Liquidator; and
c. the rights and obligations of the Liquidator.
(5) The appointment of a Liquidator by the Financial Services Authority does not reduce the responsibility and obligations of the Founder and Supervisory Board regarding the implementation of liquidation in the Pension Fund. (6) At the time of the Financial Services Authority's establishment as referred to in paragraph (4), the Pension Fund:
a. is required to stop all business activities of the Pension Fund; b. is required to append the phrase "in liquidation" after the name of the Pension Fund;
c. is not required to submit periodic reports to the Financial Services Authority as referred to in applicable legislation in the field of Pension Funds; and
d. closes the Sharia Unit, if any, from the effective date of the dissolution of the Pension Fund as referred to in paragraph (4) letter a. (7) In the event that there is a dissolution of a Pension Fund that administers a Sharia-Based Pension Program, the Liquidator carries out the liquidation process while considering Sharia Principles.

Part Three
Liquidator

Paragraph 1
General
Article 122
(1) All management actions of the Pension Fund in liquidation are carried out by the Liquidator from:
a. the date of the Financial Services Authority's establishment regarding the dissolution of the Pension Fund as referred to in Article 117 paragraph (1) or Article 119 paragraph (1); or b. from the effective date of the dissolution of the Pension Fund as referred to in Article 117 paragraph (2) letter a, Article 119 paragraph (2) letter a, or Article 121 paragraph (4) letter a, whichever is later. (2) The Founder, Executive Members, Supervisory Board, Sharia Supervisory Board, and Pension Fund employees in liquidation are required to provide data, information, and documents required by the Liquidator. (3) The Founder, Executive Members, Supervisory Board, Sharia Supervisory Board, and Pension Fund employees in liquidation are prohibited from hindering the Liquidation process. (4) In representing the Pension Fund in liquidation outside and inside the court, the Liquidator may use legal assistance services in accordance with applicable legislation.

Paragraph 2
Liquidator Members
Article 123
(1) Liquidator members for each Pension Fund in liquidation are at least 2 (two) people and at most 5 (five) people.
(2) One of the Liquidator members as referred to in paragraph (1) is established as the Chairman of the Liquidator.
(3) The establishment of the number of Liquidator members as referred to in paragraph (1) is done by considering the effectiveness and efficiency of the liquidation implementation.

Article 124
(1) The appointment of the Liquidator is done by considering the integrity, competence, and financial reputation of prospective Liquidator members. (2) Liquidator membership must include at least:
a. 1 (one) person with experience in the field of Pension Funds; and b. 1 (one) person with knowledge and experience of at least 5 (five) years in the fields of law, audit, finance, and/or accounting. (3) If necessary, the Founder or Executive Members may be appointed as Liquidator members by considering understanding of the problems occurring in the Pension Fund, being cooperative, and having no conflict of interest that could harm the Pension Fund. (4) Supervisory Board members are prohibited from holding concurrent positions as Liquidators. (5) Liquidator members among themselves and between Liquidator members and other appointed parties must not have family relationships:
a. husband or wife; b. parent and child;
c. parent of husband or wife;
d. husband or wife of child; e. full/step siblings; or f. full/step siblings of husband/wife.

Article 125
In the event of a conflict of interest between the interests of the Founder and Participants, the Liquidator must prioritize the interests of Participants.

Paragraph 3
Tasks and Authority of the Liquidator
Article 126
The Liquidator has the tasks:
a. settling matters related to dissolution; b. settling matters related to Pension Fund employees;
c. providing information to Participants and Beneficiaries regarding Participant and Beneficiary rights;
d. formulating a work plan and liquidation budget; e. settling the assets and obligations of the Pension Fund; f. submitting periodic reports and incidental reports when necessary to the Financial Services Authority; g. accounting for the implementation of liquidation to:

the Founder, in the event the Liquidator is appointed by the Founder or Founder's Liquidator; and/or
the Financial Services Authority, in the event the Liquidator is appointed by the Financial Services Authority;
h. carrying out the liquidation process in accordance with applicable legislation;
i. announcing the results of the liquidation settlement in the State Gazette of the Republic of Indonesia; and
j. carrying out other tasks deemed necessary to carry out the liquidation process.

Article 127
In carrying out tasks as referred to in Article 126, the Liquidator is authorized to:
a. represent the Pension Fund in liquidation related to the settlement of the Pension Fund's rights and obligations, both inside and outside the court; b. conduct negotiations and other actions in the sale of assets and collection of receivables that are the rights of the Pension Fund;
c. request the court to cancel all legal acts of the Pension Fund that are suspected of harming the Pension Fund and were done in bad faith; and
d. carry out other actions necessary in the implementation of liquidation.

Article 128
The Liquidator may employ supporting personnel for the Liquidator and appoint other parties for the implementation of liquidation by considering:
a. efficiency in the implementation of liquidation; b. the expertise of the supporting personnel for the Liquidator or other parties; and
c. the financial condition of the Pension Fund in liquidation.

Article 129
In requesting the cancellation to the court as referred to in Article 127 letter c, the Liquidator must first take action at least by identifying obligations that are still in effect on the effective date of the dissolution of the Pension Fund that is alleged to harm the Pension Fund, by examining:
a. the validity of obligations based on statutory regulations; and b. the fairness of transaction prices.

Article 130
The Liquidator must act fairly and objectively in carrying out its duties and authority.

Paragraph 4
Duration of Liquidation Execution

Article 131
(1) The execution of liquidation by the Liquidator must be completed within a maximum period of 2 (two) years calculated from the date of the formation of the Liquidator. (2) In the event that the liquidation execution cannot be completed within the period as referred to in paragraph (1), the liquidation execution period may be extended at most 2 (two) times, each for a maximum of 1 (one) year, after first obtaining approval from the Financial Services Authority. (3) The application for extension of the liquidation execution period as referred to in paragraph (2) is submitted by the Founder and/or shareholders of the Founder, which must at least be accompanied by:
a. reasons for the extension of the liquidation execution period; b. a report on the progress of the liquidation process up to the date of the application along with supporting evidence; and
c. a work plan and budget during the extension of the liquidation execution period.
(4) The application for extension of the liquidation execution period as referred to in paragraph (2) is submitted at the latest 4 (four) months before the end of the liquidation execution period as referred to in paragraph (1) or the end of the first extension period. (5) In the event that the liquidation execution cannot be completed within the period as referred to in paragraph (2) due to lawsuits or disputes regarding problematic assets of the Pension Fund in liquidation, the Financial Services Authority may wait until there is a final court decision. https://jdih.ojk.go.id/

(6) The Financial Services Authority has the authority to determine other resolution steps in accordance with statutory regulations.

Paragraph 5
Change of Liquidator

Article 132
(1) Liquidator members may be changed based on a proposal from the Founder or the Founder's Liquidator who submitted the application for the dissolution of the Pension Fund as referred to in Article 115 and Article 118. (2) The proposal from the Founder or Founder's Liquidator as referred to in paragraph (1) must be accompanied by reasons for the change of Liquidator members and by attaching documents:
a. photocopy of the prospective Liquidator's identity proof; b. a list of the prospective Liquidator's curriculum vitae;
c. a statement letter from the prospective Liquidator containing:

willingness to be appointed as Liquidator; and
commitment to complete liquidation in accordance with the time frame in the work plan; and
d. an integrity pact from the prospective Liquidator.
(3) In the event that the Financial Services Authority appoints and determines the Liquidator as referred to in Article 115 paragraph (3), the Financial Services Authority may change the Liquidator.

Paragraph 6
Liquidator Remuneration

Article 133
(1) Liquidator members are given remuneration determined by the Founder or the Founder's Liquidator.
(2) The amount of Liquidator remuneration as referred to in paragraph (1) is determined by considering the following factors:
a. the amount of assets and liabilities; b. the condition and level of difficulty in liquidating assets and/or collecting receivables and settling Pension Fund liabilities; and/or
c. the qualifications of the Liquidator members.
(3) Liquidator remuneration is a component of liquidation costs that becomes the burden of the Pension Fund's assets in liquidation. (4) In the event that the Financial Services Authority appoints and determines the Liquidator as referred to in Article 115 paragraph (3), the Liquidator is given remuneration determined by the Financial Services Authority. https://jdih.ojk.go.id/

Paragraph 7
Liquidator Work Plan and Budget

Article 134
(1) The Liquidator prepares a work plan and budget for the execution of liquidation.
(2) The preparation of the work plan and budget as referred to in paragraph (1) must at least contain:
a. the types of activities to be carried out; b. the schedule for completing each activity;
c. the plan for settling Pension Fund assets and liabilities; and
d. the plan for required costs.
(3) The work plan and budget as referred to in paragraph (1) is prepared for the period during the Liquidator's assignment term, detailed monthly.

Article 135
(1) The work plan and budget as referred to in Article 134 is submitted to the Financial Services Authority at the latest 30 (thirty) working days after the Liquidator is formed. (2) The work plan and budget as referred to in paragraph (1) must obtain approval from the Supervisory Board and be known by the Founder. (3) The Financial Services Authority may request improvements to the work plan and budget as referred to in paragraph (1) at the latest 20 (twenty) working days after receiving the work plan and budget. (4) In the event that the Financial Services Authority requests improvements to the work plan and budget as referred to in paragraph (3), the Liquidator must submit improvements to the work plan and budget in accordance with the Financial Services Authority's request at the latest 10 (ten) working days after receiving the improvement request letter from the Financial Services Authority. (5) The Financial Services Authority provides a statement of no objection to the work plan and budget at the latest 20 (twenty) working days after the Financial Services Authority receives the work plan and budget as referred to in paragraph (1) or improvements to the work plan and budget as referred to in paragraph (3).

Article 136
(1) During the liquidation process, the Liquidator may submit an application for changes to the work plan and budget, which must first be approved by the Supervisory Board and known by the Founder or Founder's Liquidator, and submitted to the Financial Services Authority to obtain a statement of no objection from the Financial Services Authority. https://jdih.ojk.go.id/

(2) The application for changes to the work plan and budget as referred to in paragraph (1) is accompanied by:
a. reasons for the changes; and b. a report on the progress of the Pension Fund liquidation process up to the date of the application as referred to in paragraph (1) along with supporting evidence. (3) The Financial Services Authority provides a statement of no objection to the application for changes to the work plan and budget as referred to in paragraph (1) at the latest 20 (twenty) working days after the Financial Services Authority receives the application for changes to the work plan and budget. (4) In the event that the Financial Services Authority has not or does not provide a statement of no objection to the application for changes to the work plan and budget as referred to in paragraph (1), the Liquidator continues to use the last work plan and budget approved by the Financial Services Authority.

Part Four
Settlement of Pension Fund Assets and Liabilities

Article 137
(1) The distribution of Pension Fund assets must be carried out by the Liquidator in accordance with statutory regulations in the field of Pension Funds and PDP. (2) For DPPK that implement PPMP and/or other definite benefit programs, the value of each Participant's and Entitled Party's rights in the liquidation process is paid in an amount agreed upon between:
a. the Employer; and b. Participants and Entitled Parties.
(3) The agreement as referred to in paragraph (2) is documented in a written document containing at least:
a. the rights of Participants and Entitled Parties; b. the use of surplus, if any; and
c. the determination of Participants' and Entitled Parties' rights in the event of changes in the value of Pension Fund assets in liquidation on the date of rights payment.
(4) For Pension Funds that implement PPIP, definite contribution programs, and/or Participants' Voluntary Contributions, the value of each Participant's and Entitled Party's rights in the liquidation process is the accumulated fund balance of each Participant. (5) The value of Participants' and Entitled Parties' rights as referred to in paragraph (4) is adjusted to the value of Pension Fund assets on the date of rights payment.

Article 138
(1) Before the Pension Fund liquidation process is completed, the Employer remains responsible for contributions due until the Pension Fund is dissolved in accordance with funding regulations regulated by the Financial Services Authority. (2) In the event that the due contributions as referred to in paragraph (1) cannot be paid off by the Employer to the Pension Fund within a certain period, the due contributions' claim rights are transferred from the Pension Fund's claim rights to the Participants' claim rights against the Employer. (3) During the liquidation process, the Pension Fund is prohibited from returning Pension Fund assets to the Employer. (4) Any excess assets over liabilities at the time of dissolution must be used to increase Pension Benefits for Participants up to the maximum amount determined by the Financial Services Authority. (5) In the event that there is still excess funds after increasing benefits up to the maximum amount as referred to in paragraph (4), the remaining funds must be distributed to Participants and Entitled Parties of Pension Benefits. (6) In the distribution of assets of the liquidated Pension Fund, Participants' and/or Entitled Parties' rights have a higher position than other parties' rights, except in the case of obligations to the state in accordance with statutory regulations. (7) The Founder and/or shareholders of the Founder are responsible for the implementation of the Pension Fund liquidation process executed by the Liquidator.

Part Five
Reporting on the Pension Fund Liquidation Process

Article 139
(1) The Liquidator must submit reports to the Financial Services Authority consisting of:
a. financial statements for the dissolution of the Pension Fund audited by a public accountant; and b. Actuarial Reports prepared by an actuary for the dissolution of the Pension Fund, for DPPK implementing PPMP, within a maximum period of 3 (three) months from the determination of the Financial Services Authority regarding the dissolution of the Pension Fund or from the effective date of the dissolution of the Pension Fund, whichever is later. (2) The financial statements and actuarial reports as referred to in paragraph (1) are prepared for the position as of the effective date of the dissolution of the Pension Fund. (3) Public accountants and actuaries as referred to in paragraph (1) are appointed by the Supervisory Board. https://jdih.ojk.go.id/

(4) The financial statements for the dissolution of the Pension Fund as referred to in paragraph (1) letter a must be prepared based on accounting standards applicable in Indonesia. (5) The financial statements for the dissolution of the Pension Fund as referred to in paragraph (1) letter a, for Pension Funds implementing PPIP, must contain a list of Participants' accumulated fund balances. (6) The Actuarial Report as referred to in paragraph (1) letter b must be prepared in accordance with regulations regarding DPPK funding and solvency and contain the value of each Participant's and Entitled Party's rights.

Article 140
(1) The Liquidator must prepare a report on the progress of the Pension Fund liquidation process, which must at least contain:
a. the Pension Fund's financial statements; and b. a report on the execution of the liquidation resolution work plan, including details of liquidation cost realization. (2) If the liquidation process execution period is less than or equal to 6 (six) months, the report on the progress of the Pension Fund liquidation process as referred to in paragraph (1) is prepared every 1 (one) month. (3) If the liquidation process execution period is more than 6 (six) months, the report on the progress of the Pension Fund liquidation process as referred to in paragraph (1) is prepared every 3 (three) months. (4) In the event of changes to the work plan and budget as referred to in Article 136 paragraph (1), the reporting period as referred to in paragraphs (2) and (3) is adjusted to the changes in the work plan and budget. (5) The report on the progress of the liquidation process as referred to in paragraph (1) must be submitted to the Financial Services Authority at the latest 15 (fifteen) working days after the end date of the reporting period as referred to in paragraphs (2) and (3).

Article 141
The Liquidator is responsible for the completeness, accuracy, timeliness, and integrity of data, as well as the timely submission of reports as referred to in Article 139 paragraph (1) and Article 140 paragraph (1). https://jdih.ojk.go.id/

Part Six
Resolution of Liquidation

Article 142
(1) In the event that the Liquidator has completed the entire liquidation process, the Liquidator submits an application for approval of the liquidation completion report to the Financial Services Authority. (2) The application for approval of the liquidation completion report as referred to in paragraph (1) must be submitted to the Financial Services Authority at the latest 3 (three) months after the completion of the entire liquidation process. (3) The liquidation completion report as referred to in paragraph (1) must at least contain:
a. a general overview of the Pension Fund since the determination of the Financial Services Authority regarding the dissolution of the Pension Fund as referred to in Article 117 paragraph (1) or Article 119 paragraph (1) or since the effective date of the dissolution of the Pension Fund as referred to in Article 117 paragraph (2) letter a, Article 119 paragraph (2) letter a, or Article 121 paragraph (4) letter a until the completion of the entire liquidation process, which must at least contain:

the number of Participants and Entitled Parties;
the amount of Pension Fund assets and liabilities;
the liquidation of Pension Fund assets; and
the transfer or payment of Participants' and Entitled Parties' rights;
b. the realization of the execution of the work plan and liquidation resolution procedures;
c. financial statements as of the date of completion of the entire liquidation process, audited by a public accountant; and
d. evidence related to:
the liquidation of Pension Fund assets;
the settlement of Pension Fund liabilities, including the settlement of rights to Participants and Entitled Parties; and
the payment of liquidation costs.
(4) The liquidation completion report as referred to in paragraph (1) must be signed by all Liquidator members.

Article 143
The resolution of liquidation is considered complete with the following conditions:
a. The Liquidator has completed the liquidation process and submitted the liquidation completion report to the Financial Services Authority; or b. the liquidation resolution period has ended and is proven by a decision letter from the Financial Services Authority. https://jdih.ojk.go.id/

Part Seven
Supervision of the Liquidation Process

Paragraph 1
Supervision of the Liquidation Process by the Supervisory Board

Article 144
(1) The Supervisory Board supervises the implementation of the dissolution and liquidation process of the Pension Fund.
(2) The Supervisory Board must submit a report on the results of the Pension Fund liquidation process supervision to the Financial Services Authority at the latest together with the submission of the application for approval of the liquidation completion report as referred to in Article 142 paragraph (1).

Paragraph 2
Supervision of the Liquidation Process by the Financial Services Authority

Article 145
(1) The Financial Services Authority supervises the implementation of liquidation.
(2) The supervision of liquidation implementation as referred to in paragraph (1) is carried out indirectly by analyzing reports submitted by the Liquidator to the Financial Services Authority. (3) The Financial Services Authority may conduct direct supervision at the Pension Fund in liquidation. (4) The Financial Services Authority may appoint a public accountant or other party to and on behalf of the Financial Services Authority to conduct direct supervision as referred to in paragraph (3). (5) The Financial Services Authority may replace Liquidator members if, based on the results of the Financial Services Authority's supervision:
a. Liquidator members are incompetent in carrying out their duties; b. Liquidator members are proven to have violated statutory regulations;
c. Liquidator members are known not to meet Liquidator criteria; and/or
d. there are specific conditions in the Liquidator members that can interfere with the execution of the Liquidator's duties.

Part Eight
Termination of the Pension Fund Legal Entity Status

Article 146
(1) The Financial Services Authority determines approval or rejection of the liquidation completion report as referred to in Article 142 paragraph (1) at the latest 20 (twenty) working days after the liquidation completion report is received in complete form. (2) The determination of approval or rejection of the liquidation completion report as referred to in paragraph (1) is submitted to the Liquidator. (3) In the event that the Financial Services Authority rejects the application for approval of the liquidation completion report as referred to in paragraph (2), the rejection determination states the reasons for the rejection. (4) The Liquidator is responsible, either individually or jointly, for all consequences arising from the determination of rejection of the application for approval of the liquidation completion report by the Financial Services Authority.

Article 147
(1) The Liquidator must submit an application for the announcement of the liquidation completion results approved by the Financial Services Authority in the State Gazette of the Republic of Indonesia, at the latest 15 (fifteen) working days after the date of receiving the approval determination for the Pension Fund liquidation completion report by the Liquidator. (2) The Pension Fund legal entity status ends calculated from the date of the announcement of the liquidation completion results approved by the Financial Services Authority in the State Gazette of the Republic of Indonesia. (3) The Liquidator must submit the announcement as referred to in paragraph (2) to the Financial Services Authority, at the latest 2 (two) months after the date of the announcement as referred to in paragraph (2). (4) The duties, obligations, and responsibilities of the Liquidator end when the Pension Fund legal entity status ends as referred to in paragraph (2).

Part Nine
Administrative Sanctions

Article 148
(1) Violations of the provisions as referred to in Article 117 paragraph (3) letter a, letter b, Article 118 paragraph (2), Article 119 paragraph (3) letter a, letter b, Article 121 paragraph (6) letter a, letter b, Article 122 paragraph (2), paragraph (3), Article 124 paragraph (4), Article 131 paragraph (1), Article 135 paragraph (2), paragraph (4), Article 137 paragraph (1), Article 138 paragraph (3), paragraph (7), Article 139 paragraph (1), Article 140 paragraph (1), paragraph (5), Article 142 paragraph (2), paragraph (4), Article 144 paragraph (2), and/or Article 147 paragraph (1), paragraph (3) are subject to administrative sanctions consisting of:
https://jdih.ojk.go.id/

a. written warnings; and/or b. prohibition from serving as Management, Supervisory Board, and/or Sharia Supervisory Board in Pension Funds. (2) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been corrected, the Financial Services Authority provides written warning sanctions that end automatically. (3) In the event that violations of the provisions as referred to in paragraph (1) have been fulfilled, the Financial Services Authority revokes the administrative sanctions imposed.

Part Ten
Re-evaluation of Key Parties

Article 149
In addition to imposing administrative sanctions as referred to in Article 148 paragraph (1), the Financial Services Authority has the authority to conduct re-evaluations of key parties.

CHAPTER VII
PENSION FUND ASSOCIATIONS

Part One
General Provisions

Article 150
(1) Every Pension Fund must become a member of one of the Pension Fund associations that matches its business scope.
(2) The Pension Fund association as referred to in paragraph (1) must obtain written approval from the Financial Services Authority. (3) To obtain approval as referred to in paragraph (2), the Pension Fund must submit an application to the Financial Services Authority attached with:
a. a copy of the articles of association or house rules; and b. the organizational structure.

Part Two
Administrative Sanctions

Article 151
(1) Violations of the provisions as referred to in Article 150 paragraph (1) are subject to administrative sanctions consisting of:
a. written warnings; https://jdih.ojk.go.id/

b. prohibition from implementing certain programs; and/or
c. downgrade of health level.
(2) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been corrected, the Financial Services Authority provides written warning sanctions that end automatically. (3) In the event that violations of the provisions as referred to in paragraph (1) have been fulfilled, the Financial Services Authority revokes the administrative sanctions imposed.

Part Three
Re-evaluation of Key Parties

Article 152
In addition to imposing administrative sanctions as referred to in Article 151 paragraph (1), the Financial Services Authority has the authority to conduct re-evaluations of key parties.

CHAPTER VIII
SUBMISSION OF LICENSING, APPROVAL, AND REPORTING APPLICATIONS ELECTRONICALLY

Part One
General Provisions

Article 153
(1) Applications:
a. ratification of formation as referred to in Article 8 paragraph (2), Article 12 paragraph (2), and Article 42 paragraph (3); b. ratification of changes to PDP as referred to in Article 18 paragraph (1), Article 20 paragraph (1), Article 22 paragraph (1), and Article 30 paragraph (1);
c. reporting as referred to in Article 52 paragraph (1); or
d. determination of dissolution as referred to in Article 116 paragraph (1) and Article 118 paragraph (1), must be submitted to the Financial Services Authority electronically through the Financial Services Authority's data communication network system. (2) With the submission of applications for ratification of formation, ratification of changes to PDP, reporting, or determination of dissolution as referred to in paragraph (1), Pension Funds do not need to submit printed documents. (3) In the event that applications for ratification of formation as referred to in Article 10 paragraph (2) and Article 14 paragraph (2) and ratification of changes to PDP as referred to in Article 23 paragraph (2) and Article 32 paragraph (2) have been declared complete by the Financial Services Authority, the Founder must submit PDP in printed form to the Financial Services Authority. https://jdih.ojk.go.id/

(4) In the event that the Financial Services Authority has approved the establishment or amendment of the PDP, the printed PDP as referred to in paragraph (3) must be stored by the Pension Fund. (5) Pension Funds are required to store printed documents regarding the completeness of documents for the application for approval of establishment, approval of amendments to the PDP, reporting, or decree of dissolution that have been submitted electronically as referred to in paragraph (1). (6) Pension Funds must declare that documents submitted online or via electronic mail are true and identical to the original documents. (7) Pension Funds are responsible for the truthfulness and correspondence of every document submitted electronically with the printed documents held by the Pension Fund. (8) If needed, the Financial Services Authority may conduct verification and/or validation of the truthfulness and reasonableness of the printed documents for the application for approval of establishment, approval of amendments to the PDP, reporting, or decree of dissolution as referred to in paragraph (5) which have been submitted by the Pension Fund electronically. (9) Pension Funds are required to provide printed documents for the application for approval of establishment, approval of amendments to the PDP, reporting, or decree of dissolution as referred to in paragraph (5) which have been submitted by the Pension Fund electronically at the time of implementation of verification and/or validation by the Financial Services Authority as referred to in paragraph (8). (10) All documents submitted electronically as referred to in paragraph (1) have legal force equivalent to printed documents. (11) In the event that the electronic system as referred to in paragraph (1) experiences technical disturbances, the submission of applications for approval of establishment, approval of amendments to the PDP, reporting, or decree of dissolution, is submitted to the Financial Services Authority offline. (12) Submission of applications for approval of establishment, approval of amendments to the PDP, reporting, or decree of dissolution offline as referred to in paragraph (11) must be submitted in the form of color scans of the original documents via electronic data storage media. https://jdih.ojk.go.id/

(13) In the event of technical disturbances or force majeure, the Financial Services Authority announces this on the website or via electronic mail to the Pension Fund.

Part Two
Administrative Sanctions
Article 154
(4) Violations of the provisions as referred to in Article 153 paragraph (3), paragraph (4), paragraph (5), paragraph (7), and/or paragraph (9) are subject to administrative sanctions in the form of:
a. written warning; b. prohibition to carry out certain programs; and/or
c. downgrade of health level.
(5) In the event of a violation of the provisions as referred to in paragraph (1) and the violation has been corrected, the Financial Services Authority gives a written warning sanction that ends automatically. (6) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the administrative sanction imposed.

Part Three
Re-evaluation of Key Parties
Article 155
In addition to imposing administrative sanctions as referred to in Article 154 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of key parties.

CHAPTER IX
OTHER PROVISIONS
Article 156
Managers as referred to in Article 59 paragraph (1), Supervisory Boards as referred to in Article 71 paragraph (1), and Sharia Supervisory Boards as referred to in Article 83 paragraph (1) are key parties for DPLK as regulated in the Financial Services Authority Regulation regarding the assessment of competence and propriety for key parties of financial service institutions.

Article 157
The Financial Services Authority may, based on certain considerations, grant approval or policies that differ from this Financial Services Authority Regulation. https://jdih.ojk.go.id/

CHAPTER X
TRANSITIONAL PROVISIONS
Article 158
Applications for approval and amendments to the PDP that have been submitted to the Financial Services Authority before this Financial Services Authority Regulation comes into force are processed in accordance with this Financial Services Authority Regulation.

Article 159
(1) For Pension Funds that are in the process of liquidation, the liquidation team appointed by the Financial Services Authority acts as the Liquidator. (2) For Pension Funds that are in the process of liquidation, the settlement of assets and liabilities of the Pension Fund can be carried out based on:
a. a liquidation work plan that has been approved by the Financial Services Authority before this Financial Services Authority Regulation comes into force; or b. adjustment of the liquidation work plan in accordance with this Financial Services Authority Regulation.

Article 160
Pension Funds that have obtained approval from the Financial Services Authority before this Financial Services Authority Regulation comes into force must adjust the PDP with legislation in the field of Pension Funds no later than 1 (one) year since this Financial Services Authority Regulation is promulgated.

Article 161
(1) For DPLK that have obtained approval of establishment before this Financial Services Authority Regulation is promulgated, compliance with the provisions and requirements of competence and propriety of the Supervisory Board as referred to in Article 74 paragraph (1) must be fulfilled no later than 1 (one) year since this Financial Services Authority Regulation is promulgated. (2) In the event that the time limit as referred to in paragraph (1) has been exceeded and the Supervisory Board has not fulfilled the provisions as referred to in Article 74 paragraph (1), the Supervisory Board is prohibited from carrying out actions, duties, and functions as a Supervisory Board as regulated in the Financial Services Authority Regulation regarding the assessment of competence and propriety for key parties of financial service institutions. (3) The provisions as referred to in Article 101 paragraph (1) are applied by Pension Funds no later than 6 (six) months since this Financial Services Authority Regulation comes into force. https://jdih.ojk.go.id/

CHAPTER XI
CLOSING PROVISIONS
Article 162
At the time this Financial Services Authority Regulation comes into force, the following provisions:
a. Financial Services Authority Regulation Number 9/POJK.05/2014 concerning Dissolution and Liquidation of Pension Funds (State Gazette of the Republic of Indonesia Year 2014 Number 163, Additional State Gazette of the Republic of Indonesia 5555); b. Financial Services Authority Regulation Number 13/POJK.05/2016 concerning Procedures for Applications for Approval of Establishment of Employer Pension Funds and Approval of Amendments to Regulations of Employer Pension Funds (State Gazette of the Republic of Indonesia Year 2016 Number 38, Additional State Gazette of the Republic of Indonesia 5852);
c. Financial Services Authority Regulation Number 14/POJK.05/2016 concerning Approval of Establishment of Financial Institution Pension Funds and Amendments to Regulations of Financial Institution Pension Funds (State Gazette of the Republic of Indonesia Year 2016 Number 39, Additional State Gazette of the Republic of Indonesia 5853);
d. Financial Services Authority Regulation Number 15/POJK.05/2016 concerning Requirements for Managers and Supervisory Boards of Employer Pension Funds and Acting Managers of Financial Institution Pension Funds (State Gazette of the Republic of Indonesia Year 2016 Number 40, Additional State Gazette of the Republic of Indonesia 5854); e. Financial Services Authority Regulation Number 33/POJK.05/2016 concerning Implementation of Pension Programs Based on Sharia Principles (State Gazette of the Republic of Indonesia Year 2016 Number 187, Additional State Gazette of the Republic of Indonesia 5928); f. Financial Services Authority Regulation Number 15/POJK.05/2019 concerning Pension Fund Governance (State Gazette of the Republic of Indonesia Year 2019 Number 106, Additional State Gazette of the Republic of Indonesia 6356); and g. the provision of Article 2 paragraph (2) letter f of Financial Services Authority Regulation Number 27/POJK.05/2016 concerning Assessment of Competence and Propriety for Key Parties of Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2016 Number 147, Additional State Gazette of the Republic of Indonesia 5098), are revoked and declared invalid.

Article 163
This Financial Services Authority Regulation comes into force 3 (three) months from the date of promulgation. https://jdih.ojk.go.id/

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

In order 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 20 December 2024

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

Promulgated in Jakarta on 23 December 2024

MINISTER OF LAW OF THE REPUBLIC OF INDONESIA,
SUPRATMAN ANDI AGTAS

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2024 NUMBER 47/OJK ttd https://jdih.ojk.go.id/

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 35 OF 2024
CONCERNING
LICENSING AND INSTITUTIONAL ASPECTS OF PENSION FUNDS

I. GENERAL
With the promulgation of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK) on 12 January 2023, Law Number 11 of 1992 concerning Pension Funds (UU 11/1992) was revoked; however, the implementing regulations of UU 11/1992 are declared to remain valid as long as they do not conflict and are given 2 (two) years to complete their implementing regulations, including in the form of Financial Services Authority Regulations. Reform in the financial sector is one of the reasons for the promulgation of UU P2SK. Reform in the financial sector has high urgency in increasing the intermediary role of the financial sector, as well as strengthening the resilience of the national financial system. A deep, innovative, efficient, inclusive, trustworthy, strong, and stable financial sector will support strong, balanced, inclusive, and sustainable economic growth, which is very necessary in realizing an Indonesian society that is just, prosperous, and well-off based on Pancasila and the 1945 Constitution of the Republic of Indonesia.

This Financial Services Authority Regulation contains substance regarding the approval of the establishment of Pension Funds, PDP, and amendments to the PDP which were previously regulated in Financial Services Authority Regulation Number 13/POJK.05/2016 concerning Procedures for Applications for Approval of Establishment of Employer Pension Funds and Approval of Amendments to Regulations of Employer Pension Funds, Financial Services Authority Regulation Number 14/POJK.05/2016 concerning Approval of Establishment of Financial Institution Pension Funds and Amendments to Regulations of Financial Institution Pension Funds, and Financial Services Authority Regulation Number 33/POJK.05/2016 concerning Implementation of Pension Programs Based on Sharia Principles; the substance of the latter two relates to governance which was previously regulated in Financial Services Authority Regulation Number 15/POJK.05/2016 concerning Requirements for Managers and Supervisory Boards of Employer Pension Funds and Acting Managers of Financial Institution Pension Funds, and Financial Services Authority Regulation Number 15/POJK.05/2019 concerning Pension Fund Governance; finally, the substance contains dissolution and liquidation which was previously regulated in Financial Services Authority Regulation Number 9/POJK.05/2014 concerning Dissolution and Liquidation of Pension Funds.

II. ARTICLE BY ARTICLE
Article 1
It is clear enough.

Article 2
It is clear enough.

Article 3
It is clear enough.

Article 4
Pension Programs based on separate laws include among others Pension Programs in the national social security system and Pension Programs for state officials.

Article 5
It is clear enough.

Article 6
Paragraph (1)
In the event that a Pension Fund is formed for more than 1 (one) Employer, 1 (one) Employer acts as the Founder and other Employers act as Co-Founders. DPPK formed by more than 1 (one) Employer is based on practical considerations, efficiency, or other reasons.

Paragraph (2)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
A study showing that the Founder has a business plan and capacity in the development of DPPK.

Paragraph (3)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
It is clear enough.

Letter f
Funding support and/or infrastructure support, among others, rooms or buildings loaned by the Founder to DPPK without rental fees and salaries of Managers, Supervisory Boards, and Sharia Supervisory Boards paid from the Founder's budget.

Article 7
Paragraph (1)
Letter a
Exemption from separation or merger results is given to legal entities that have carried out separation or merger and have had a business license for at least 2 (two) years.

Letter b
Example of Founder experiencing financial difficulties:
a. experiencing losses; and b. having liquidity difficulties.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
It is clear enough.

Letter f
What is meant by "supervisor" is the supervisor who oversees the financial service institution submitting the application for the establishment of DPLK.

Letter g
A study showing that the Founder has a business plan and capacity in the development of DPLK.

Paragraph (2)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
Funding support and/or infrastructure support, among others, support for information system development and support for human resources.

Paragraph (3)
Letter a
Managed funds, among others, fund management contract funds.

Letter b
It is clear enough.

Article 8
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
Example of approval:
a. general meeting of shareholders, for limited liability companies/circular resolutions; b. annual members' meeting, for cooperatives;
c. owners, for sole proprietorships; and
d. board of trustees meeting, for foundations.

Letter e
See explanation of letter d.

Letter f
It is clear enough.

Letter g
Human resources include the names of officials and employees of DPPK filling the DPPK organizational structure.

Letter h
It is clear enough.

Letter i
It is clear enough.

Letter j
It is clear enough.

Letter k
It is clear enough.

Letter l
It is clear enough.

Letter m
It is clear enough.

Letter n
It is clear enough.

Letter o
It is clear enough.

Paragraph (4)
It is clear enough.

Article 9
Paragraph (1)
Letter a
Summary of PDP contains the main regulations contained in the PDP.

Letter b
It is clear enough.

Letter c
It is clear enough.

Paragraph (2)
It is clear enough.

Article 10
It is clear enough.

Article 11
It is clear enough.

Article 12
Paragraph (1)
It is clear enough.

Paragraph (2)
It is clear enough.

Paragraph (3)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
Human resources include the names of officials and employees of DPLK filling the DPLK organizational structure.

Letter g
It is clear enough.

Letter h
It is clear enough.

Letter i
See explanation of Article 7 paragraph (1) letter f.

Letter j
It is clear enough.

Letter k
It is clear enough.

Letter l
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Article 13
Letter a
See explanation of Article 9 paragraph (1) letter a.

Letter b
It is clear enough.

Letter c
It is clear enough.

Article 14
It is clear enough.

Article 15
It is clear enough.

Article 16
It is clear enough.

Article 17
It is clear enough.

Article 18
Paragraph (1)
Applications for approval of amendments to the PDP follow the provisions regulated in this Financial Services Authority Regulation.

Paragraph (2)
Letter a
Pension Funds intending to convert into Pension Funds whose entire activities are based on Sharia Principles may have investments that do not comply with Sharia Principles such as bond investments. When the Pension Fund will carry out conversion, the type of Pension Fund investment that does not comply with Sharia Principles must be adjusted first so that all Pension Fund investments at the time of becoming a Pension Fund whose entire activities are based on Sharia Principles comply with Sharia Principles.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
Proof of expertise, among others, diplomas/educational certificates, workshops, training, and courses.

Letter f
Human resources include the names of officials and employees of the Pension Fund filling the Pension Fund organizational structure.

Paragraph (3)
It is clear enough.

Article 19
Paragraph (1)
Can be carried out by DPPK PPMP and DPPK PPIP to form a Sharia Unit that implements PPIP.

Paragraph (2)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
See explanation of Article 8 paragraph (3) letter g.

Paragraph (3)
It is clear enough.

Article 20
Paragraph (1)
See explanation of Article 18 paragraph (1).

Paragraph (2)
What is meant by "assets and liabilities of the Sharia Unit" is the separation of recording and management of assets and liabilities of the Sharia Unit.

Paragraph (3)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
It is clear enough.

Letter f
See explanation of Article 18 paragraph (2) letter e.

Letter g
It is clear enough.

Paragraph (4)
It is clear enough.

Article 21
Paragraph (1)
What is meant by "asset separation" is separating the assets of Participants who move to the Sharia Unit.

Paragraph (2)
What is meant by "proportional" is in accordance with the proportion of Participants who transfer to the Sharia Unit. The proportion of assets and liabilities of Sharia Unit Participants is based on Participant account balances.

Paragraph (3)
It is clear enough.

Article 22
Paragraph (1)
See explanation of Article 18 paragraph (1).

Paragraph (2)
Letter a
See explanation of Article 18 paragraph (2) letter e.

Letter b
It is clear enough.

Paragraph (3)
It is clear enough.

Article 23
It is clear enough.

Article 24
It is clear enough.

Article 25
It is clear enough.

Article 26
It is clear enough.

Article 27
Paragraph (1)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
The inclusion of the purpose and objective of establishing DPPK to make it clearly known that DPPK implements PPMP and/or PPIP.

Letter f
This provision confirms that if there is a claim against the assets of the Employer, as a separate legal entity, DPPK assets are excluded from the claim so that Participant rights remain protected.

Letter g
It is clear enough.

Letter h
It is clear enough.

Letter i
It is clear enough.

Letter j
Rights, obligations, and responsibilities of the Founder, Managers, Supervisory Board, Sharia Supervisory Board, Participants, and Employers, among others, related to the update of participant data.

Letter k
Requirements to become a Participant, among others, age, employment status, length of service, and other requirements deemed necessary to be set by the Employer.

Letter l
In the PDP, the procedure for appointing and replacing the Beneficiary must be established. This appointment and replacement need to be carried out to provide clarity regarding the Beneficiary entitled to payments that should be the Participant's right.

Letter m
It is clear enough.

Letter n
It is clear enough.

Letter o
It is clear enough.

Letter p
It is clear enough.

Letter q
It is clear enough.

Letter r
Contributions to DPPK consist of:
a. Employer contributions and Participant contributions; or b. Employer contributions, the amount of which is set in the actuarial calculation for DPPK implementing PPMP or

set in the PDP for DPPK implementing PPIP.

Letter s
In PPMP, the Pension Benefit formula includes among others:

multiplication of the appreciation percentage per year of service, length of service, and basic pension income; and
multiplication of a fixed rupiah amount for each year of service and length of service.
In PPIP, Pension Benefits for Participants are basically the accumulation of all contributions and their development results.

Letter t
It is clear enough.

Letter u
The procedure referred to in this letter, among others, relates to periodic payments whether paid by DPPK or purchased as annuities/Sharia annuities, lump-sum payments, and provisions regarding documents to be completed by the benefit recipient, place and time of benefit payment.

Letter v
Implementation of other Pension Benefits and/or other benefits in the PDP, among others, regulates regarding the type, contributions, funding sources, and payment procedures for other Pension Benefits and/or other benefits.

Letter w
It is clear enough.

Letter x
What is meant by "sanction (ta'zir)" is funds paid by the Employer to the Pension Fund implementing the Pension Program Based on Sharia Principles as a consequence of the Employer's delay in paying contributions, which is used as social funds.

Letter y
Expenditure from DPPK is mainly for the payment of Pension Benefits. In order for other expenditures from DPPK, which are part of the program implementation costs, to remain controlled, and not reduce the portion intended for the payment of Pension Benefits, it is necessary to establish costs that can be expended from DPPK.

Paragraph (2)
Regulations for each type of Pension Program contain the rights and obligations of Employers and Participants for each Pension Program.

Article 28
Letter a
The name of DPLK becomes the identity used to distinguish the DPLK in question from other DPLK. In addition, the name of DPLK also needs to be distinguished from the name of DPPK established by commercial banks, Sharia commercial banks, life insurance companies, Sharia life insurance companies, investment managers, or Sharia investment managers in their capacity as Employers for the benefit of their employees.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
It is clear enough.

Letter f
This provision confirms that if there is a claim against the assets of the Founder, as a separate legal entity, DPLK assets are excluded from the claim so that Participant rights remain protected.

Letter g
It is clear enough.

Letter h
It is clear enough.

Letter i
It is clear enough.

Letter j
Rights, obligations, and responsibilities of the Founder, Managers, Supervisory Board, and/or Sharia Supervisory Board, among others, related to the update of participant data.

Letter k
For the sake of its business, the Founder can set requirements to become a Participant.

Letter l
See explanation of Article 27 paragraph (1) letter l.

Letter m
It is clear enough.

Letter n
It is clear enough.

Letter o
Participants can determine the Normal Retirement Age according to the needs of the Participants but do not conflict with the Normal Retirement Age provisions contained in legislation in the field of Pension Funds.

Letter p
It is clear enough.

Letter q
Contributions to DPLK consist of:
a. Employer contributions and Participant contributions; b. Employer contributions; or
c. Participant contributions.

Letter r
See explanation of Article 27 paragraph (1) letter v.

Letter s
Pension Benefits for DPLK Participants are determined by the final result of contributions and their development which are entirely the risk of the Participants. Thus, Participants determine the choice of investment type.

Letter t
The Founder provides investment types that Participants can choose from, along with regulations for choosing such investment types or for changing the choice from one type to another. Letter u Clearly sufficient. Letter v The procedures referred to in this letter, among others, relate to periodic payments, whether paid by the Pension Fund Manager (DPLK) or used to purchase annuities/Sharia annuities, lump-sum payments, and regulations regarding documents that must be completed by the beneficiary, the place and time of benefit payment. Letter w Clearly sufficient. Letter x Examples of special regulations for Participant groups included by the Employer:
Regulations regarding the determination of Normal Retirement Age, investment choices, and Participant registration procedures.
Letter y
Cost charges to Participants can be done in various ways, among others, by directly deducting from Participants outside of contributions and directly deducting from investment returns that are the right of Participants.
Article 29
Letter a
Examples of the frequency of voluntary Participant contributions:
Monthly, quarterly, or annually.
Examples of the mechanism for voluntary Participant contributions:
Paid together with the minimum contribution.
Letter b
Costs charged for the management of voluntary Participant contributions include if the Employer does not charge additional fees for the implementation of voluntary Participant contributions. Letter c Clearly sufficient. Letter d Clearly sufficient.
Article 30
Paragraph (1)
Clearly sufficient.
Paragraph (2)
In the event of changes to the Pension Fund Program (PDP) resulting in decrease/reduction of the reward factor, length of service, and/or basic pension income, the decrease/reduction of the reward factor, length of service, and/or basic pension income only applies to the period after the PDP is approved. Paragraph (3) Clearly sufficient. Paragraph (4) Clearly sufficient.

Article 31
Paragraph (1)
Letter a
Changes to the PDP are made in the form of partial changes or replacement containing changes entirely.
Partial changes only contain some of the provisions that have changed.
Partial changes to the PDP only repeal some of the PDP that has changed.
Replacement containing changes to all contents of the PDP and will repeal the previously applicable PDP.
Letter b
Clearly sufficient.
Letter c
Clearly sufficient.
Letter d
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Article 32
Clearly sufficient.
Article 33
Clearly sufficient.
Article 34
Paragraph (1)
Examples of changes to the PDP that result in changes to funding:
a. change in reward factor; b. length of service; and
c. basic pension income.
Letter a
Clearly sufficient.
Letter b
Number 1
See explanation of Article 8 paragraph (3) letter d.
Number 2
See explanation of Article 8 paragraph (3) letter d.
Number 3
Clearly sufficient.
Number 4
Agreement between the Employer and Participant, and the Entitled Party, among others, through recognized labor unions, Participant representation based on internal company mechanisms, and pensioner associations for retired Participants. Paragraph (2) Clearly sufficient.
Article 35
Paragraph (1)
Letter a
See explanation of Article 8 paragraph (3) letter d.

Letter b
Clearly sufficient.
Letter c
See explanation of Article 8 paragraph (3) letter d.
Letter d
Clearly sufficient.
Letter e
Clearly sufficient.
Letter f
See explanation of Article 34 paragraph (1) letter b number 4.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Letter a
Clearly sufficient.
Letter b
What is meant by "Participant and Entitled Party rights" is the Employer's obligation to Participants and the Entitled Party.
Letter c
Clearly sufficient.
Paragraph (4)
Clearly sufficient.
Article 36
Paragraph (1)
Letter a
See explanation of Article 8 paragraph (3) letter d.
Letter b
Clearly sufficient.
Letter c
See explanation of Article 8 paragraph (3) letter d.
Letter d
Clearly sufficient.
Letter e
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Article 37
Paragraph (1)
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
Clearly sufficient.
Letter d
See explanation of Article 34 paragraph (1) letter b number 4.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.

Paragraph (4)
Letter a
See explanation of Article 35 paragraph (3) letter b.
Letter b
Clearly sufficient.
Paragraph (5)
Clearly sufficient.
Paragraph (6)
Clearly sufficient.
Paragraph (7)
Clearly sufficient.
Article 38
Paragraph (1)
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
See explanation of Article 8 paragraph (3) letter d.
Letter d
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Article 39
Clearly sufficient.
Article 40
Paragraph (1)
Example:
DPPK ABC managing PPMP submits a request for approval of changes to the PDP for merger with DPPK XYZ managing PPIP.
Merger can be carried out as long as DPPK ABC Participants do not transfer programs to become DPPK Participants managing PPIP.
Paragraph (2)
Clearly sufficient.
Article 41
Clearly sufficient.
Article 42
Clearly sufficient.
Article 43
Clearly sufficient.
Article 44
Paragraph (1)
See explanation of Article 34 paragraph (1) letter b number 4.
Paragraph (2)
Letter a
Clearly sufficient.

Letter b
See explanation of Article 35 paragraph (3) letter b.
Letter c
Clearly sufficient.
Article 45
Example:
Separation of Pension Fund A whose entire activities are based on Sharia Principles into Pension Fund A1 and Pension Fund A2, whose entire activities are based on Sharia Principles.
Article 46
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Changes to the PDP aim to eliminate provisions specifically intended for the implementation of the Sharia-Based Pension Program, for example, contracts.
Article 47
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Letter a
Clearly sufficient.
Letter b
What is meant by "Participant" is a Participant from a Sharia investment package.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.
Paragraph (5)
Clearly sufficient.
Article 48
Clearly sufficient.
Article 49
Clearly sufficient.
Article 50
Paragraph (1)
Letter a
Clearly sufficient.
Letter b
Financial and investment functions, among others, funding functions and finance functions.
Letter c
Service functions, among others, membership functions and complaint service functions. For DPLK, examples of service functions include marketing functions. Paragraph (2) Clearly sufficient. Paragraph (3) Clearly sufficient.

Paragraph (4)
Clearly sufficient.
Paragraph (5)
Clearly sufficient.
Paragraph (6)
Clearly sufficient
Paragraph (7)
Clearly sufficient
Article 51
Paragraph (1)
What is meant by "administrative management" is administrative management related to contributions, membership, investment activities, benefit payments, and/or reporting. Paragraph (2) Clearly sufficient. Paragraph (3) Clearly sufficient. Paragraph (4) Clearly sufficient.
Article 52
Paragraph (1)
What is meant by "Founder's determination of changes" is the appointment or dismissal of Management, Supervisory Board, and/or Sharia Supervisory Board. Paragraph (2) Clearly sufficient.
Article 53
Clearly sufficient.
Article 54
Clearly sufficient.
Article 55
Paragraph (1)
The application of Pension Fund Governance principles in every Pension Fund business activity includes during the preparation of vision, mission, strategic plans, implementation of policies, and internal supervision steps at all levels or stages of the organization. Paragraph (2) Clearly sufficient. Paragraph (3) Clearly sufficient. Paragraph (4) Letter a The implementation of duties and responsibilities of Management, Supervisory Board, and/or Sharia Supervisory Board refers to the PDP, including provisions governing the implementation of duties and responsibilities and provisions of applicable laws and regulations. Letter b Clearly sufficient.

Letter c
Clearly sufficient.
Letter d
Clearly sufficient.
Letter e
Clearly sufficient.
Letter f
The application of anti-fraud strategies is carried out in accordance with Otoritas Jasa Keuangan Regulations regarding the application of anti-fraud strategies for financial service institutions. Paragraph (5) Clearly sufficient.
Article 56
Clearly sufficient.
Article 57
Clearly sufficient.
Article 58
Paragraph (1)
Pension Funds are established because the Founder establishes a PDP which is subsequently approved by Otoritas Jasa Keuangan. Therefore, the Founder is responsible for the implementation of the Pension Fund until the Pension Fund is dissolved. Paragraph (2) Clearly sufficient. Paragraph (3) Clearly sufficient. Paragraph (4) Forms of Founder support for DPPK in the application of Pension Fund Governance, among others, in evaluating the performance of Management, Supervisory Board, and/or Sharia Supervisory Board. One aspect assessed is the application of Pension Fund Governance. Forms of Founder support for DPLK in the application of Pension Fund Governance, among others, providing DPLK needs to apply Pension Fund Governance. Paragraph (5) Clearly sufficient. Paragraph (6) Clearly sufficient. Paragraph (7) Founder support in marketing only applies to DPLK. Paragraph (8) Clearly sufficient.
Article 59
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
What is meant by "half" is 50% (fifty percent).
Example:
If the number of Pension Fund Management members is 3 (three) people, then at least 2 (two) Pension Fund Management members must have adequate skills in the field of investment and/or risk management. Paragraph (4) Clearly sufficient. Paragraph (5) Clearly sufficient. Paragraph (6) Clearly sufficient. Paragraph (7) Clearly sufficient. Paragraph (8) Clearly sufficient. Paragraph (9) Clearly sufficient.
Article 60
Clearly sufficient.
Article 61
Clearly sufficient.
Article 62
What is meant by "family relationships up to the second degree" is relationships both vertical and horizontal including parents-in-law, children-in-law, and siblings-in-law, so it includes:

biological/step/adopted parents;
biological/step/adopted siblings including husband or wife;
biological/step/adopted children;
biological/step/adopted grandparents;
biological/step/adopted grandchildren;
biological/step/adopted siblings of parents including husband or wife;
husband or wife;
parents-in-law;
siblings-in-law;
husband or wife of biological/step/adopted children;
grandparents of husband or wife;
husband or wife of biological/step/adopted grandchildren; and/or
biological/step/adopted siblings of husband or wife including husband or wife.
Article 63
Letter a
What is meant by "responsible" is in accordance with duties and/or obligations as established in the PDP and provisions of laws and regulations in the field of Pension Funds. Letter b Clearly sufficient. Letter c Clearly sufficient. Letter d Clearly sufficient.

Letter e
Clearly sufficient.
Letter f
Clearly sufficient.
Letter g
Clearly sufficient.
Letter h
Clearly sufficient.
Letter i
Clearly sufficient.
Letter j
Clearly sufficient.
Letter k
Clearly sufficient.
Letter l
Clearly sufficient.
Letter m
Clearly sufficient.
Article 64
Letter a
What is meant by "conflict of interest" is a situation where there is a conflict between the interests of economic members of Management and the economic interests of the Pension Fund, Founder's person, Partner Founder, members of the Supervisory Board, members of the Sharia Supervisory Board, and/or Pension Fund employees. Letter b Clearly sufficient. Letter c Clearly sufficient.
Article 65
Letter a
One way to ensure Participants are given choices for investment packages or types suitable for them is by conducting valuation of Participant risk tolerance so that it can be adjusted to the Participant's chosen investment package or type. Letter b Clearly sufficient. Letter c Clearly sufficient. Letter d What is meant by "disclosed in detail" is the disclosure of costs based on the type of costs charged to Participants according to the PDP and not the total costs charged to Participants. Letter e In offering assistance in choosing investment packages or types, Pension Funds can provide simulations or projections of expected benefits and risks that may arise.
Article 66
Letter a
Clearly sufficient.

Letter b
Clearly sufficient.
Letter c
What is meant by "executive position" is a position equivalent to the board of directors in the entity concerned.
What is meant by "other business entity" is a business entity that has the purpose of obtaining profit or benefit, including the Founder.
Article 67
Clearly sufficient.
Article 68
Clearly sufficient.
Article 69
Clearly sufficient.
Article 70
Strategic policies and decisions decided through Management meetings, among others, decisions on investment placement and release, preparation of business plans, decisions related to proposed changes to the PDP that impact the funding of the Pension Fund, and decisions on appointing third parties.
Article 71
Clearly sufficient.
Article 72
Paragraph (1)
Clearly sufficient.
Paragraph (2)
What is meant by "half" is 50% (fifty percent).
Example:
If the number of DPPK Supervisory Board members is 3 (three) people, then at least 2 (two) DPPK Supervisory Board members must be domiciled in Indonesia.
Article 73
Paragraph (1)
Clearly sufficient.
Paragraph (2)
What is meant by "half" is 50% (fifty percent).
Example:
If the number of DPLK Supervisory Board members is 3 (three) people, then at least 2 (two) DPLK Supervisory Board members must be Indonesian citizens. Paragraph (3) What is meant by "half" is 50% (fifty percent). Example:
If the number of DPLK Supervisory Board members is 3 (three) people, then at least 2 (two) DPLK Supervisory Board members must be domiciled in Indonesia.

Article 74
Clearly sufficient.
Article 75
See explanation of Article 62.
Article 76
What is meant by "waiting period" is the interval between the time the relevant position ends effectively as Management, with the effective appointment of the relevant person as the Supervisory Board.
Article 77
Letter a
Clearly sufficient.
Letter b
Examples of activities monitoring the effectiveness of Pension Fund Governance implementation: monitoring and evaluating the implementation of Pension Fund Governance. Letter c Clearly sufficient. Letter d Clearly sufficient. Letter e Clearly sufficient. Letter f Clearly sufficient. Letter g Clearly sufficient. Letter h Clearly sufficient. Letter i Clearly sufficient. Letter j Clearly sufficient. Letter k Clearly sufficient. Letter l Clearly sufficient. Letter m Clearly sufficient. Letter n Clearly sufficient. Letter o Clearly sufficient. Letter p What is meant by "report on the application of Pension Fund Governance" is the report on the application of Pension Fund Governance submitted to Otoritas Jasa Keuangan. Letter q DPLK investment performance evaluation reports refer to the comparison between investment plans and their realization. DPPK investment performance evaluation reports refer to the comparison between Investment Directives and investment plans with their realization.

Article 78
Clearly sufficient.
Article 79
Letter a
What is meant by "conflict of interest" is a situation where there is a conflict between the interests of economic members of the Supervisory Board and the economic interests of the Pension Fund, Founder's person, Partner Founder, Management, Sharia Supervisory Board, and/or Pension Fund employees. Letter b Clearly sufficient. Letter c Clearly sufficient. Letter d Clearly sufficient.
Article 80
Clearly sufficient.
Article 81
Clearly sufficient.
Article 82
Clearly sufficient.
Article 83
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.
Paragraph (5)
Clearly sufficient.
Paragraph (6)
Clearly sufficient.
Paragraph (7)
What is meant by "half" is 50% (fifty percent).
Example:
If the number of Sharia Supervisory Board members is 3 (three) people, then at least 2 (two) Sharia Supervisory Board members must be Indonesian citizens. Paragraph (8) What is meant by "half" is 50% (fifty percent). Example:
If the number of Sharia Supervisory Board members is 3 (three) people, then at least 2 (two) Sharia Supervisory Board members must be domiciled in Indonesia. Paragraph (9) Clearly sufficient.

Article 84
Clearly sufficient.
Article 85
See explanation of Article 62.
Article 86
Letter a
Clearly sufficient.
Letter b
What is meant by "supervisory duties" is to supervise the implementation of the Sharia-Based Pension Program for compliance with Sharia Principles. Letter c Clearly sufficient. Letter d Clearly sufficient. Letter e Clearly sufficient. Letter f Clearly sufficient.
Article 87
Clearly sufficient.
Article 88
Letter a
What is meant by "conflict of interest" is a situation where there is a conflict between the interests of economic members of the Sharia Supervisory Board and the economic interests of the Pension Fund, Founder's person, Partner Founder, Management members, Supervisory Board members, and/or Pension Fund employees. Letter b Clearly sufficient. Letter c Clearly sufficient.
Article 89
Letter a
Clearly sufficient.
Letter b
What is meant by "financial institution" is a financial institution that conducts all or part of its business with Sharia Principles.
Article 90
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
Clearly sufficient.
Letter d
Clearly sufficient.

Letter e
Clearly sufficient.
Letter f
For Pension Funds whose entire activities are conducted based on Sharia Principles, the Sharia-Based Pension Program ends when the Pension Fund is declared dissolved. For Sharia Units and Sharia investment packages, the Sharia-Based Pension Program ends when changes to the PDP for the termination of the Sharia Unit or Sharia investment package are approved by Otoritas Jasa Keuangan.
Article 91
Clearly sufficient.
Article 92
Paragraph (1)
Clearly sufficient.
Paragraph (2)
What is meant by "available assets" is available assets obtained from the latest audited financial statements by a public accountant. Paragraph (3) Clearly sufficient. Paragraph (4) Clearly sufficient.
Article 93
Clearly sufficient.
Article 94
Paragraph (1)
Clearly sufficient.
Paragraph (2)
See explanation of Article 92 paragraph (2).
Article 95
Clearly sufficient.
Article 96
Clearly sufficient.
Article 97
Paragraph (1)
What is meant by "Pension Fund external auditor" is a public accountant.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.

Article 98
Paragraph (1)
What is meant by "actuary" is an actuarial consultant who has obtained a registered certificate from Otoritas Jasa Keuangan.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Letter a
Clearly sufficient.
Letter b
What is meant by "applicable actuarial practice standards in Indonesia" are actuarial practice standards established by the actuary association recognized by the ministry responsible for government affairs in the field of finance. Letter c Clearly sufficient. Paragraph (4) Clearly sufficient.
Article 99
Clearly sufficient.
Article 100
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Letter a
Clearly sufficient.
Letter b
What is included in the analysis of investment placement and release conducted by the Pension Fund includes decisions related to release (cut loss) as mandated by provisions of laws and regulations in the field of Pension Funds. Letter c Clearly sufficient. Letter d Clearly sufficient. Letter e Clearly sufficient. Paragraph (4) The level of risk to be taken is commonly known as risk appetite. Risk tolerance is commonly known as risk tolerance. Provisions regarding the level of risk to be taken (risk appetite) and risk tolerance (risk tolerance) are implemented in accordance with Otoritas Jasa Keuangan Regulations regarding the application of risk management for non-bank financial service institutions and its implementing regulations.

Article 101
Paragraph (1)
See explanation of Article 92 paragraph (2).
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
What is meant by "parties outside the Pension Fund" are parties assessed to have competence and understanding of provisions in the field of Pension Funds. Paragraph (5) Tasks of the investment committee include making policies and recommending regarding cut loss decisions conducted by the Pension Fund in accordance with provisions of laws and regulations in the field of Pension Funds.
Article 102
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Letter a
Clearly sufficient.
Letter b
What is meant by "instructions or work orders" is standard operating procedures.
Letter c
Data security management guidelines and incident management guidelines are commonly known as disaster recovery plans.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.
Article 103
Clearly sufficient.
Article 104
Clearly sufficient.
Article 105
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Information regarding changes to the PDP among others includes matters that impact rights to be received by Participants.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Media accessible by Participants, among others, electronic mail, printed mail sent to Participant address, Founder's information technology systems, and Pension Fund's information technology systems. Paragraph (5) Clearly sufficient.

Paragraph (6)
Clearly sufficient.
Paragraph (7)
Clearly sufficient.
Article 106
Clearly sufficient.
Article 107
Paragraph (1)
Letter a
Clearly sufficient.
Letter b
What is meant by "material transaction" is a transaction categorized as a material transaction based on Management or Supervisory Board assessment and/or based on financial accounting standards. Letter c Clearly sufficient. Letter d Clearly sufficient. Paragraph (2) Clearly sufficient.
Article 108
Letter a
Stakeholders, among others, employees, Participants, and the Entitled Party.
Letter b
Clearly sufficient.
Article 109
Paragraph (1)
Other parties, among others, stakeholders, brokers, and providers of goods and services.
Paragraph (2)
Clearly sufficient.
Article 110
Clearly sufficient.
Article 111
Clearly sufficient.
Article 112
Clearly sufficient.
Article 113
Clearly sufficient.
Article 114
Clearly sufficient.

Article 115
Paragraph (1)
Letter a
Clearly sufficient.
Letter b
What is meant by "Founder dissolved" includes if the Founder is in the process of liquidation, among others, dissolution of the Founder that does not result in a change of Founder. Letter c Number 1 What is meant by "unable to fulfill its obligations" to Participants and the Entitled Party includes among others being unable to pay Pension Benefits that have become due. Number 2 Example:
Employer does not pay contributions to DPPK for a certain period so that it results in worsening financial conditions of DPPK.
The worsening of financial conditions is indicated by a decrease in the funding ratio so that DPPK has the potential to be unable to pay Pension Benefits to Participants and the Entitled Party in the future or an increase in the age of contribution receivables which has the potential for suboptimal accumulation of Participant funds. Number 3 Clearly sufficient. Paragraph (2) Letter a Determination by Otoritas Jasa Keuangan is an administrative approval of the dissolution of the Pension Fund. The dissolution requires follow-up so that matters related to settlement issues can be implemented through the liquidation process. In the event the Founder is dissolved, the Founder Liquidator can represent the Founder to appoint the Pension Fund Liquidator. Letter b What is meant by "Founder Liquidator" is parties who have the task of liquidating the Founder. Paragraph (3) Appointment of Liquidator including changes by Otoritas Jasa Keuangan can come from proposals by the Pension Fund Founder.
Article 116
Clearly sufficient.
Article 117
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.

Paragraph (3)
Clearly sufficient.
Paragraph (4)
Settlement of the liquidation process of the Pension Fund that conducts the Sharia-Based Pension Program, among others, settlement of Participant rights in accordance with Sharia Principles.
Article 118
Paragraph (1)
Letter a
Examples of Founders declared dissolved based on dissolution procedures in the articles of association include for Founders in the form of limited companies, the articles of association regulate that dissolution is carried out based on a decision of the general meeting of shareholders. Letter b Dissolution of the Founder by competent authorities, among others, dissolution of the Founder in the form of a limited company by the court or dissolution of the Founder in the form of a cooperative by the minister responsible for government affairs in the field of cooperatives and small and medium enterprises. Letter c DPLK can only be founded by commercial banks, Sharia commercial banks, life insurance companies, Sharia life insurance companies, investment managers, or Sharia investment managers. Therefore, if the DPLK Founder's business license as a commercial bank, Sharia commercial bank, life insurance company, Sharia life insurance company, investment manager, or Sharia investment manager is revoked, the Founder no longer meets the criteria as a Founder. Paragraph (2) Clearly sufficient. Paragraph (3) See explanation of Article 115 paragraph (2) letter b. Paragraph (4) Clearly sufficient. Paragraph (5) Clearly sufficient. Paragraph (6) Letter a Legal basis for Founder dissolution includes for Founders in the form of limited companies, a copy of the deed of decision of the general meeting of shareholders of the Founder that decides that the Founder is dissolved. Letter b Clearly sufficient. Letter c Clearly sufficient. Letter d Clearly sufficient. Letter e Clearly sufficient.

Letter f
Clearly sufficient.
Article 119
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Clearly sufficient.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
See explanation of Article 117 paragraph (4).
Article 120
Clearly sufficient.
Article 121
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Not conducting business activities in the field of Pension Funds, among others, not having Participants and not having assets.
Paragraph (3)
Clearly sufficient.
Paragraph (4)
Clearly sufficient.
Paragraph (5)
Clearly sufficient.
Paragraph (6)
Clearly sufficient.
Paragraph (7)
See explanation of Article 117 paragraph (4).
Article 122
Clearly sufficient.
Article 123
Clearly sufficient.
Article 124
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Letter a
Experience in the field of Pension Funds as Founder, Management, Supervisory Board, Sharia Supervisory Board, and/or Pension Fund employees. Letter b Clearly sufficient. Paragraph (3) Clearly sufficient. Paragraph (4) Clearly sufficient. Paragraph (5) Clearly sufficient.

Article 125
Clearly stated.

Article 126
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
Clearly stated.
Letter d
Clearly stated.
Letter e
The settlement of the obligations of the Pension Fund referred to in this letter includes the settlement of obligations to the state, Participants, and Entitled Parties. Letter f Clearly stated. Letter g Clearly stated. Letter h Clearly stated. Letter i Clearly stated. Letter j Clearly stated.

Article 127
Clearly stated.

Article 128
Clearly stated.

Article 129
Clearly stated.

Article 130
Clearly stated.

Article 131
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Paragraph (6)
Examples of other settlement steps:
Agreement between the Founder and the Liquidator to resolve problematic assets and obligations that must be fulfilled within a certain period.

Article 132
Clearly stated.

Article 133
Clearly stated.

Article 134
Clearly stated.

Article 135
Clearly stated.

Article 136
Clearly stated.

Article 137
Paragraph (1)
Clearly stated.
Paragraph (2)
See the explanation of Article 34 paragraph (1) letter b number 4.
Paragraph (3)
Letter a
See the explanation of Article 35 paragraph (3) letter b.
Letter b
Clearly stated.
Letter c
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
The value of Pension Fund assets may change in amount during the liquidation process, either increasing or decreasing. This is caused, among other things, by the realization value of the sale of Pension Fund assets being different from the fair value of Pension Fund assets as of the effective date of dissolution as reported in the financial statements for dissolution which have been audited by a public accountant. In such cases, the realization of payments to Participants and Entitled Parties will be adjusted to the asset value on the payment date.

Article 138
Clearly stated.

Article 139
Clearly stated.

Article 140
Paragraph (1)
Letter a
The financial statements of the Pension Fund prepared by the Liquidator may use generally accepted accounting standards or other standards relevant to the purpose of preparing the Pension Fund financial statements in liquidation. Letter b Clearly stated.

Paragraph (2)
Clearly stated.

Paragraph (3)
Clearly stated.

Paragraph (4)
The Liquidator may submit a request for changes to the work plan and procedures for the settlement of the Pension Fund liquidation, including changes to the time frame for implementing the liquidation process. The period for reporting the progress of the Pension Fund liquidation process will be adjusted according to the changes in the work plan approved by the Financial Services Authority, calculated from the date of approval by the Financial Services Authority.

Paragraph (5)
Clearly stated.

Article 141
Clearly stated.

Article 142
Clearly stated.

Article 143
Clearly stated.

Article 144
Clearly stated.

Article 145
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
What is meant by "direct supervision" is examination.
Paragraph (4)
Other parties, including, among others, independent actuaries and appraisers.
Paragraph (5)
Letter a
Incapable, including, among others, the Liquidator being unable to carry out tasks and obligations.
Letter b
Clearly stated.
Letter c
Clearly stated.
Letter d
Examples of specific conditions that can disrupt the implementation of the Liquidator's tasks:
Liquidator members resign, fall ill, and pass away.

Article 146
Clearly stated.

Article 147
Clearly stated.

Article 148
Clearly stated.

Article 149
Clearly stated.

Article 150
Paragraph (1)
This regulation is intended to increase the role of associations in regulating their members (self-regulatory) and facilitate coordination with the Financial Services Authority. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated.

Article 151
Clearly stated.

Article 152
Clearly stated.

Article 153
Clearly stated.

Article 154
Clearly stated.

Article 155
Clearly stated.

Article 156
Clearly stated.

Article 157
The granting of approvals or policies that differ is intended, among other things, to:
a. support national policies; b. protect public interests;
c. maintain industry growth; and/or
d. maintain healthy business competition.
Examples of conditions requiring specific consideration, including, among others, extraordinary events that can cause a significant increase in morbidity and mortality and also impact the economy and society, thus requiring attention and handling by all relevant parties and regulated in other provisions regarding consideration in facing possible extraordinary events.

Article 158
Clearly stated.

Article 159
Clearly stated.

Article 160
Clearly stated.

Article 161
Clearly stated.

Article 162
Clearly stated.

Article 163
Clearly stated.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 115/OJK

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 35 OF 2024
CONCERNING
LICENSING AND INSTITUTIONAL ASPECTS
OF PENSION FUNDS

I. APPLICATION FORM FOR APPROVAL OF ESTABLISHMENT OF EMPLOYER PENSION FUNDS (DPPK)
Number :
Attachment :
Subject :
To:
Executive Head of Insurance, Guarantee, and Pension Fund Supervision c/o Head of Licensing, Special Examination, and Supervisory Quality Control Department of Insurance, Guarantee, and Pension Funds Wisma Mulia 2 Building, 11th Floor Gatot Subroto Avenue No. 42 Kavling Jakarta 12710.

Hereby we submit an application for approval of the establishment of an Employer Pension Fund, by submitting the following:
A. Pension Fund
Name :
Address :
Telephone Number :
Fax Number :
Website :
Email :
B. Attached Documents

PDP (Pension Fund Regulations).
Written statement from the Founder.
Written statement from Partner Founder, if any.
Approval from the company owner or general meeting of shareholders or equivalent regarding the written statement of the Founder.
Approval from the company owner or general meeting of shareholders or equivalent regarding the written statement of the Partner Founder, if any.
Letter of appointment of Management, Board of Supervisors, and/or Sharia Supervisory Board.
Organizational structure and human resources of the DPPK equipped with job descriptions.
Investment Guidelines.
Actuarial Report, if implementing a Defined Benefit Pension Program (PPMP).
Initial balance sheet of the DPPK, if there are initial assets or funds.
Company regulations stating that it will include its employees in the DPPK.
Study on the establishment of the DPPK.
Proof of DPPK system readiness.
Proof of payment settlement for licensing fees for the approval of DPPK establishment.
Other documents needed according to the implementation of the program and/or other benefits currently being applied for.