OJK Regulation No. 39 of 2024 on Pawnshops

EXTRACT
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 39 OF 2024
ON
PAWNSHOPS
BY THE GRACE OF THE ALMIGHTY GOD
THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: that in order to implement the mandate of Article 106 paragraph (6), Article 111 paragraph (2), Article 112 paragraph (3), Article 113 paragraph (4), Article 114 paragraph (3), Article 115 paragraph (5), Article 116 paragraph (3), Article 121 paragraph (2), Article 122 paragraph (3), Article 123 paragraph (2), Article 124 paragraph (2), Article 125 paragraph (4), Article 128 paragraph (4), Article 252 paragraph (4), Article 269, Article 270 paragraph (3), and Article 282 paragraph (3) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, as well as to support the development of the industry and legal needs regarding pawnshop business as previously regulated in Financial Services Authority Regulation Number 31/POJK.05/2016 concerning Pawnshop Business, it is necessary to establish a Financial Services Authority Regulation concerning Pawnshops; Recalling: 1. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette Number 6845);
2. Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette Number 6845);
DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING PAWNSHOPS. https://jdih.ojk.go.id/

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

Pawnshop Company is a legal entity that conducts business activities providing loans with movable property collateral on a conventional basis.
Sharia Pawnshop Company is a legal entity that conducts all business activities providing loans with movable property collateral based on Sharia principles.
Company means Pawnshop Company and Sharia Pawnshop Company.
Sharia Principles are Islamic legal principles based on fatwas and/or Sharia conformity statements issued by institutions having authority in issuing fatwas in the field of Sharia.
Sharia Business Unit, hereinafter abbreviated as UUS, is a work unit of the Company's headquarters that carries out part of the business activities based on Sharia Principles and/or functions as the head office of offices conducting business based on Sharia Principles.
Controlling Shareholder, hereinafter abbreviated as PSP, is a legal entity, individual, and/or business group that directly or indirectly owns shares or shares equivalent to shares in the Company and/or has the ability to exercise control over the said Company.
General Meeting of Shareholders, hereinafter abbreviated as GMS, is the company organ that has authority not delegated to the Board of Directors or Board of Commissioners within limits determined by laws regulating limited liability companies and/or the articles of association for Companies with limited liability company legal status or equivalent for cooperative legal entities.
Board of Directors is the Company organ authorized and fully responsible for managing the Company for the benefit of the Company, in accordance with the purpose and objectives of the Company, and representing the Company, both in and out of court, in accordance with the provisions of the articles of association for Companies with limited liability company legal status or equivalent to the Board of Directors for Companies with cooperative legal status.
Board of Commissioners is the Company organ tasked with conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors for Companies with limited liability company legal status or equivalent to the Board of Commissioners for Companies with cooperative legal status.
Sharia Supervisory Board, hereinafter abbreviated as DPS, is a party having the task and function of supervising the implementation of Company activities to ensure compliance with Sharia Principles.
Paid-up Capital is paid-up capital as referred to in laws regarding limited liability companies for Companies with limited liability company legal status or the sum of basic savings, mandatory savings, and donations as referred to in legislation regarding cooperatives for Companies with cooperative legal status.
Equity is equity based on accounting standards applicable in Indonesia.
Merger is a legal act performed by 1 (one) or more Companies to merge with an existing Company, resulting in the assets, liabilities, and Equity of the merging Company transferring by operation of law to the receiving Company, and subsequently, the legal status of the merging Company ends by operation of law.
Consolidation is a legal act performed by 2 (two) or more Companies to consolidate by establishing 1 (one) new Company, which by operation of law acquires the assets, liabilities, and Equity of the consolidating Companies, and the legal status of the consolidating Companies ends by operation of law.
Separation is a legal act performed by a Company to separate business, resulting in all assets, liabilities, and Equity of the Company transferring by operation of law to 2 (two) or more Companies or part of the assets, liabilities, and Equity of the Company transferring by operation of law to 1 (one) or more Companies.
Dissolution is the process of ending the Company's legal status after the revocation of the business license.
Liquidation is the action of settling all Company assets and obligations as a result of the revocation of the Company's business license and Dissolution.
Liquidation Team is a team tasked with conducting Liquidation, formed by the GMS or the Financial Services Authority.
Closing Balance Sheet is the Company's balance sheet as of the date of the revocation of the Company's business license, prepared in accordance with applicable accounting standards.
Interim Liquidation Balance Sheet is the Company's balance sheet as of the date of the revocation of the Company's business license, prepared by the Liquidation Team based on the audited Closing Balance Sheet, taking into account:
a. asset positions based on estimated realizable values; and b. liability positions after the expiration of the period for submitting claims or receivables by the Company.
Final Liquidation Balance Sheet is the balance sheet submitted by the Liquidation Team after the Liquidation process is completed or the Liquidation execution period expires.
Association is an association of Companies that has obtained written approval from the Financial Services Authority.
Pawn is a right obtained by the Company over a movable object, which is handed over to it by the customer or their proxy, as collateral for the loan, and which gives the Company the authority to take repayment of the loan from that object prior to other creditors, with the exception of costs for auctioning or selling the object and costs for saving the object incurred after the object is handed over as pawn, which costs must be prioritized.
Collateral Object is any movable object pledged by the customer to the Company.
Appraiser is a person holding certification in the field of appraisal from a certification issuing institution registered with the Financial Services Authority.
Pawn Certificate is a document evidencing a loan agreement with Collateral Object based on Pawn law, signed by the Company and the customer.
Loan is money lent by the Company to the customer.
Customer is an individual or business entity that receives a Loan with Collateral Object and/or utilizes other services available at the Company.
Auction is the sale of Collateral Objects open to the public with written and/or oral price offers that increase or decrease to achieve the highest price, preceded by an auction announcement.
Surplus Funds are the excess from the sale proceeds of the Collateral Object minus the Loan amount, interest/service charges, costs for auctioning, costs for saving the object, and tax costs arising from the sale of the Collateral Object.
Branch Office is an office other than the Company's headquarters that has the authority to approve and sign business activity agreements.
Professional Certification Institution, hereinafter abbreviated as LSP, is an institution conducting professional certification activities that has met the requirements and obtained a license from the National Professional Certification Agency.
Electronic Signature is a signature consisting of electronic information attached, associated, or related to other electronic information, used as a verification and authentication tool.
Maximum Loan Limit, hereinafter abbreviated as MLL, is a specific limit on Loan provision permitted under this Financial Services Authority Regulation.
Health Level is the result of assessing the Company's condition regarding capital adequacy, asset quality, management, profitability, and liquidity.
Composite Rating is the final result of the Health Level assessment.

CHAPTER II
LEGAL STATUS, OWNERSHIP, AND CAPITAL
First Section
Legal Status
Article 2
The legal status of the Company consists of:
a. limited liability company; and b. cooperative.

Second Section
Ownership
Article 3
(1) The Company may only be owned by:
a. the Unitary State of the Republic of Indonesia; b. regional governments;
c. Indonesian citizens;
d. Indonesian legal entities; and/or e. foreign legal entities; and/or f. foreign citizens.
(2) Ownership provisions for Companies with cooperative legal status as referred to in Article 2 letter b are implemented in accordance with legislation in the field of cooperatives.

Article 4
(1) Ownership by foreign legal entities as referred to in Article 3 paragraph (1) letter e may only be conducted in the form of partnership with:
a. the government; b. regional governments;
c. Indonesian citizens; and/or
d. Indonesian legal entities.
(2) Ownership of the Company by foreign citizens as referred to in Article 3 paragraph (1) letter f may only be conducted through transactions in the capital market.
(3) Ownership of the Company by foreign legal entities as referred to in Article 3 paragraph (1) letter e and ownership by foreign citizens as referred to in Article 3 paragraph (1) letter f are implemented in accordance with government regulations regarding foreign ownership in the Company.

Article 5
(1) The Company must designate at least 1 (one) PSP.
(2) Companies with limited liability company status must designate a legal entity, individual, and/or business group that has:
a. nominal value of shares or Company capital amounting to 25% (twenty-five percent) or more of the nominal value of issued shares and having voting rights; or b. nominal value of shares or Company capital less than 25% (twenty-five percent) of the nominal value of issued shares and having voting rights, but it can be proven that they have exercised control over the Company, directly or indirectly, as a PSP. (3) Companies with cooperative status must designate at least 1 (one) PSP through a member meeting mechanism or other mechanisms in accordance with legislation in the field of cooperatives. (4) In the event that shareholders meeting the criteria as PSP exceed 1 (one) party, the Company must designate all shareholders meeting the criteria as PSP. (5) In the event that there are other PSPs not designated by the Company, the Financial Services Authority has the authority to designate PSPs outside those referred to in paragraph (1). (6) The Company must submit a report on the designation of PSPs as referred to in paragraphs (1) through (4) to the Financial Services Authority no later than 15 (fifteen) working days from the date of PSP designation.

Third Section
Capital
Article 6
(1) The Company's Paid-up Capital is determined based on the business scope: regency/city, province, or national.
(2) The Company must have Paid-up Capital at the time of establishment of at least:
a. IDR 2,000,000,000.00 (two billion rupiah), for regency/city business scope; b. IDR 8,000,000,000.00 (eight billion rupiah), for provincial business scope; or
c. IDR 100,000,000,000.00 (one hundred billion rupiah), for national business scope.
(3) The Paid-up Capital as referred to in paragraph (2) must be paid in cash and in full, placed in the form of time deposits in the name of the Company at one of:
a. commercial banks, Sharia commercial banks, or Sharia business units of commercial banks in Indonesia for Pawnshop Companies; or b. Sharia commercial banks or Sharia business units of commercial banks in Indonesia for Sharia Pawnshop Companies.

Article 7
(1) Sources of funds for investment in the Company are prohibited from:
a. originating from loans; and b. originating from and for the purposes of money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes. (2) PSPs with legal entity status must have operated for at least 2 (two) years before making investments in the Company. (3) Provisions as referred to in paragraph (2) are exempted for new PSPs resulting from Merger, Consolidation, or Separation. (4) For shareholders with legal entity status, the amount of investment in the Company is set at a maximum equal to the shareholder's Equity. (5) Provisions on investment amounts as referred to in paragraph (4) do not apply to shareholders of the Company that are financial service institutions under the supervision of the Financial Services Authority. (6) For shareholders of the Company that are financial service institutions under the supervision of the Financial Services Authority, the amount of investment in the Company must be conducted in accordance with legislation regarding investment and/or participation. (7) Provisions regarding sources of investment funds as referred to in paragraph (1), provisions regarding the minimum operational period of PSPs as referred to in paragraph (2), and provisions regarding shareholder Equity limits as referred to in paragraph (4) must be fulfilled when the shareholder:
a. pays the establishment capital of the Company; b. purchases Company shares; and/or
c. increases the Company's Paid-up Capital.

Fourth Section
Company Name
Article 8
(1) The Company's name must be clearly stated in the establishment deed, starting with the legal status and containing the word:
a. Gadai or a word characterizing Pawn activities, for Pawnshop Companies; or b. Gadai or a word characterizing Pawn activities followed by the word Sharia, for Sharia Pawnshop Companies. (2) The Company's name must be clearly stated on the Company's office building. (3) In addition to meeting the provisions as referred to in paragraph (1), the use of the Company's name is implemented in accordance with legislation regarding limited liability companies and cooperatives.

Fifth Section
Administrative Sanctions
Article 9
(1) Companies violating provisions as referred to in Article 5 paragraph (1), paragraph (2), paragraph (3), paragraph (4), paragraph (6), Article 7 paragraph (1), and/or Article 8 paragraph (2) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. revocation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without being preceded by the imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at a maximum of IDR 50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event that violations of provisions as referred to in paragraph (1) occur and the violations have been corrected, the Financial Services Authority imposes administrative sanctions in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the Health Level assessment results; b. re-evaluate the main parties causing the Company to violate provisions as referred to in paragraph (1); and/or
c. record the track record of parties causing the Company to violate provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER III
BUSINESS LICENSING
Article 10
(1) Companies conducting business activities providing Loans with movable property collateral must first obtain a business license from the Financial Services Authority.
(2) To obtain the business license as referred to in paragraph (1), the Board of Directors must submit a business license application to the Financial Services Authority, attaching the business license requirement documents listed in the Appendix in Table 1, which is an integral part of this Financial Services Authority Regulation. (3) The business license application as referred to in paragraph (2) is submitted simultaneously with the application for assessment of competence and propriety for prospective Board of Directors members, prospective Board of Commissioners members, prospective PSPs, and prospective DPS members.

Article 11
(1) The Financial Services Authority provides approval or rejection of the business license application as referred to in Article 10 paragraph (2) no later than 20 (twenty) working days from the date the complete business license application is received. (2) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and examination of document completeness; b. capital deposit analysis;
c. feasibility analysis of the business plan;
d. assessment of competence and propriety for prospective Board of Directors members, prospective Board of Commissioners members, prospective PSPs, and/or prospective DPS members; and e. analysis of compliance with legislation in the field of pawnshops. (3) In the event of missing documents as referred to in Article 10 paragraph (2), the Financial Services Authority submits a request for document completeness to the Company. (4) The Company must submit the complete documents no later than 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (5) If within 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received the complete documents, the Company is deemed to have cancelled the application. (6) The Financial Services Authority may conduct inspections at the Company's office to ensure the Company's infrastructure readiness. (7) In the event that the business license application as referred to in paragraph (1) is approved, the Financial Services Authority establishes a business license grant decision according to the business scope. (8) In the event that the business license application as referred to in paragraph (1) is rejected, the Financial Services Authority provides written notification accompanied by the reasons for rejection. (9) Further provisions regarding the procedure for applying for the Company's business license as referred to in Article 10 paragraph (2) are established by the Financial Services Authority.

Article 12
(1) Companies that have obtained a business license from the Financial Services Authority must conduct business activities no later than 30 (thirty) calendar days from the date the business license is established. (2) The Company must submit a report on business activity implementation as referred to in paragraph (1) to the Financial Services Authority no later than 15 (fifteen) working days from the date business activities commence. (3) The report on business activity implementation as referred to in paragraph (2) must be submitted by the Board of Directors to the Financial Services Authority, attaching the business activity implementation reporting requirement documents listed in the Appendix in Table 2, which is an integral part of this Financial Services Authority Regulation. (4) If the Company has not conducted business activities after the period as referred to in paragraph (1), the Financial Services Authority revokes the issued business license.

Article 13
(1) Companies violating provisions as referred to in Article 10 paragraph (1) and/or Article 12 paragraph (1), paragraph (2), are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. revocation of approval; https://jdih.ojk.go.id/

f. prohibition to become a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine.
(2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) 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 imposes administrative sanctions in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. lower the Health Level assessment results; b. conduct a re-evaluation of the main party that caused the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of the party that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER IV
CONVERSION FROM PAWNSHOP COMPANY TO SHARIA PAWNSHOP COMPANY

Article 14
(1) A Pawnshop Company may convert into a Sharia Pawnshop Company.
(2) A Pawnshop Company that converts into a Sharia Pawnshop Company as referred to in paragraph (1) must first obtain a conversion license from the Financial Services Authority. (3) The implementation of conversion from a Pawnshop Company to a Sharia Pawnshop Company must meet the following provisions:
a. meet the required Minimum Equity; and b. the conversion carried out does not harm Customers.
(4) A Pawnshop Company must include a conversion plan in its business plan as referred to in the Financial Services Authority Regulation regarding business plans of non-bank financial institutions. (5) A Pawnshop Company must announce the conversion plan and the impact of the conversion on Customers through notice boards at the Head Office and Branch Offices that are easily accessible to the public.

Article 15
(1) To obtain a conversion license as referred to in Article 14 paragraph (2), the Board of Directors must submit an application to the Financial Services Authority by attaching the requirements documents for the conversion license of a Pawnshop Company to a Sharia Pawnshop Company listed in the Appendix in table 3 which is an integral part of this Financial Services Authority Regulation. (2) The conversion license application as referred to in paragraph (1) is submitted simultaneously with the application for competency and propriety assessment for prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and prospective members of the Sharia Supervisory Board (DPS) of the Sharia Pawnshop Company.

Article 16
(1) The Financial Services Authority provides approval or rejection of the conversion license application as referred to in Article 15 paragraph (1) within a maximum period of 20 (twenty) working days since the application is received completely. (2) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on document completeness; b. feasibility analysis of the conversion implementation plan;
c. competency and propriety assessment of prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and prospective members of the DPS; and
d. analysis of compliance with statutory regulations.
(3) In the event of missing documents as referred to in Article 15 paragraph (1), the Financial Services Authority sends a request for document completeness to the Company.
(4) The Company must submit the complete documents within a maximum of 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (5) If within 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received the complete documents, the Company is deemed to have cancelled the application. (6) The Financial Services Authority may conduct an inspection to the Pawnshop Company's office to ensure the operational readiness of the Sharia Pawnshop Company. (7) In the event that the conversion license application is approved, the Financial Services Authority issues a conversion license letter to the relevant Company. (8) In the event that the conversion license application is rejected, the Financial Services Authority sends a written notification accompanied by the reasons for rejection.

Article 17
(1) A Pawnshop Company that has obtained a conversion license from the Financial Services Authority must hold an Extraordinary General Meeting of Shareholders (RUPS) within a maximum of 60 (sixty) working days calculated from the date of the Financial Services Authority's license letter. (2) If the time limit as referred to in paragraph (1) has expired and the Pawnshop Company has not held an RUPS approving the conversion, the Financial Services Authority has the authority to cancel the conversion license that has been granted.

Article 18
(1) A Pawnshop Company must report in writing the implementation of the RUPS approving the conversion to a Sharia Pawnshop Company to the Financial Services Authority within a maximum of 20 (twenty) working days calculated from the date the RUPS was held. (2) The reporting of the implementation of the RUPS approving the conversion to a Sharia Pawnshop Company as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the reporting requirements documents for the implementation of the RUPS approving the conversion to a Sharia Pawnshop Company listed in the Appendix in table 4 which is an integral part of this Financial Services Authority Regulation. (3) Based on the reporting of the implementation of the RUPS approving the conversion as referred to in paragraph (2), the Financial Services Authority conducts analysis and research on document completeness as referred to in paragraph (2). (4) The Financial Services Authority provides:
a. approval or rejection of the business license as a Sharia Pawnshop Company which becomes effective calculated from the date the Articles of Association are approved, agreed upon, or notified to the competent authority; and b. approval, recording, or rejection of the agreements used by the converted Sharia Pawnshop Company, within a maximum period of 20 (twenty) working days after the reporting documents as referred to in paragraph (2) are received completely. (5) In the event that the Financial Services Authority approves the business license as referred to in paragraph (4) letter a and approves or records the agreements used as referred to in paragraph (4) letter b, the Financial Services Authority:
a. establishes the business license decision; and/or b. issues a letter of approval or recording of the agreements used by the Sharia Pawnshop Company.
(6) In the event that the Financial Services Authority rejects to:
a. establish the business license; and/or b. approve or record the agreements used by the Sharia Pawnshop Company, the Financial Services Authority sends a written notification accompanied by the reasons for rejection.

Article 19
(1) A Sharia Pawnshop Company resulting from conversion must report the implementation of the conversion to the Financial Services Authority within a maximum of 15 (fifteen) working days calculated from the date the Articles of Association are approved, agreed upon, or notified to the competent authority. (2) The reporting of the implementation of the conversion as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the reporting requirements documents for the implementation of the conversion listed in the Appendix in table 5 which is an integral part of this Financial Services Authority Regulation.

Article 20
(1) Companies that violate the provisions as referred to in Article 14 paragraph (2), paragraph (5), Article 18 paragraph (1), and/or Article 19 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk level assessment results; e. cancellation of approval; f. prohibition to become a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) 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 imposes administrative sanctions in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. lower the Health Level assessment results; b. conduct a re-evaluation of the main party that caused the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of the party that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER V
SHARIA BUSINESS UNIT

First Section
Establishment of Sharia Business Unit

Article 21
(1) A Pawnshop Company may establish a Sharia Business Unit (UUS).
(2) A Pawnshop Company that receives funding based on Sharia Principles must distribute it in the form of Loans based on Sharia Principles.
(3) A Pawnshop Company that has a Sharia Business Unit must include the intent and purpose of carrying out part of business activities based on Sharia Principles in its Articles of Association.

Article 22
(1) A Pawnshop Company that carries out part of business activities based on Sharia Principles must:
a. have working capital set aside for UUS activities; b. have a UUS leader responsible for the implementation of business activities carried out based on Sharia Principles;
c. have a Sharia Supervisory Board (DPS); and
d. have separate accounting for the UUS.
(2) Working capital as referred to in paragraph (1) letter a must be at least:
a. IDR 800,000,000.00 (eight hundred million rupiah) for a UUS from a Pawnshop Company with a district/city operational scope; b. IDR 3,200,000,000.00 (three billion two hundred million rupiah) for a UUS from a Pawnshop Company with a provincial operational scope; or
c. IDR 40,000,000,000.00 (forty billion rupiah) for a UUS from a Pawnshop Company with a national operational scope.
(3) Working capital as referred to in paragraph (2) must be set aside in the form of time deposits in the name of the Pawnshop Company and placed in one of the Sharia commercial banks or Sharia business units of commercial banks in Indonesia. (4) The UUS leader of the Pawnshop Company as referred to in paragraph (1) letter b must:
a. be appointed by the Board of Directors of the Pawnshop Company; b. not hold concurrent positions in other functions other than those aimed at supporting the implementation of business activities based on Sharia Principles;
c. have expertise, training, and/or experience in the field of Sharia finance; and
d. not have non-performing loans and/or financing.

Second Section
Licensing of Sharia Business Unit

Article 23
(1) The establishment of a UUS as referred to in Article 21 paragraph (1) must obtain a license from the Financial Services Authority.
(2) To obtain the establishment license for a UUS as referred to in Article 21 paragraph (1), the Board of Directors of the Pawnshop Company must submit a license application to the Financial Services Authority by attaching the requirements documents for the establishment license of a UUS listed in the Appendix in table 6 which is an integral part of this Financial Services Authority Regulation. (3) The UUS establishment license application as referred to in paragraph (2) is submitted simultaneously with the application for competency and propriety assessment for prospective members of the DPS.

Article 24
(1) The Financial Services Authority provides approval or rejection of the approval application as referred to in Article 23 paragraph (2) within a maximum of 20 (twenty) working days since the approval application and documents are received completely. (2) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on document completeness; b. feasibility analysis of the UUS work plan;
c. examination of UUS working capital deposits;
d. competency and propriety assessment of prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and prospective members of the DPS; and e. analysis of compliance with statutory regulations. (3) In the event of missing documents as referred to in Article 23 paragraph (2), the Financial Services Authority sends a request for document completeness to the Company. (4) The Company must submit the complete documents within a maximum of 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (5) If within 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received the complete documents, the Company is deemed to have cancelled the application. (6) In the event that the UUS establishment application is approved, the Financial Services Authority issues an approval letter to the relevant Pawnshop Company. (7) In the event that the UUS establishment application is rejected, the Financial Services Authority sends a written notification accompanied by the reasons for rejection.

Article 25
(1) A UUS must carry out business activities based on Sharia Principles within a maximum of 30 (thirty) calendar days since the date of approval.
(2) A UUS must submit a report on the implementation of business activities to the Financial Services Authority within a maximum of 30 (thirty) calendar days since the date business activities based on Sharia Principles began. (3) The reporting of business activity implementation as referred to in paragraph (2) must be conducted by the Board of Directors by attaching photocopy documents of Pawn Receipts or Loan Agreements with Fiduciary Guarantee Collateral that have been used. (4) In the event that a UUS does not carry out business activities based on Sharia Principles within the time limit as referred to in paragraph (1), the Financial Services Authority revokes the UUS establishment license.

Article 26
(1) A Pawnshop Company that has a UUS must have Board of Directors members responsible for the management of the UUS.
(2) Board of Directors members responsible for the management of the UUS as referred to in paragraph (1) must have:
a. knowledge in the field of Sharia finance or pawnshops based on Sharia Principles; b. experience in the field of Sharia finance or pawnshops based on Sharia Principles for at least 1 (one) year; and
c. commitment to the development of the UUS.

Article 27
(1) A Pawnshop Company must report changes in UUS leadership to the Financial Services Authority within a maximum of 15 (fifteen) working days since the date of the appointment of the UUS leadership. (2) The reporting of UUS leadership changes as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the reporting requirements documents for UUS leadership changes as referred to in Article 23 paragraph (2) listed in the Appendix in table 6 which is an integral part of this Financial Services Authority Regulation.

Third Section
Separation of Sharia Business Unit

Paragraph 1
UUS Separation Criteria

Article 28
(1) A Pawnshop Company may carry out UUS Separation based on its own request.
(2) A Pawnshop Company that has a UUS must carry out UUS Separation if:
a. the UUS meets certain criteria established by the Financial Services Authority; or b. there is a Financial Services Authority order in the context of consolidation.

Article 29
(1) UUS Separation can be carried out in the form of:
a. the establishment of a new Sharia Pawnshop Company; or b. the transfer to another Sharia Pawnshop Company.
(2) The establishment of a Sharia Pawnshop Company as referred to in paragraph (1) letter a is carried out by separating business activities resulting in all assets, liabilities, and Equity of the UUS transferring by operation of law to the new Sharia Pawnshop Company. (3) The transfer to another Sharia Pawnshop Company as referred to in paragraph (1) letter b is carried out by transferring all Customer portfolios in the UUS of the Pawnshop Company to another Sharia Pawnshop Company that has obtained a business license.

Article 30
(1) A Sharia Pawnshop Company resulting from UUS Separation by establishing a new Sharia Pawnshop Company as referred to in Article 29 paragraph (1) letter a is exempt from the Minimum Paid-up Capital provisions as referred to in Article 6 paragraph (2) at the time of establishment. (2) Paid-up Capital of a Sharia Pawnshop Company resulting from Separation can be fulfilled in the form of:
a. time deposits in the name of the Sharia Pawnshop Company at one of the Sharia commercial banks or Sharia business units of commercial banks in Indonesia; and/or b. other forms permitted based on statutory regulations and in accordance with Sharia accounting standards.

Article 31
(1) UUS Separation must meet the following requirements:
a. the Pawnshop Company carrying out UUS Separation and the Sharia Pawnshop Company resulting from UUS Separation must meet a Composite Health Level of at least Rating 2; b. it does not cause the Pawnshop Company, the Sharia Pawnshop Company resulting from UUS Separation, or the Sharia Pawnshop Company receiving the transfer of asset portfolios from the UUS to violate provisions in the field of pawnshops; and
c. it does not harm Customer interests.
(2) A Pawnshop Company that will carry out UUS Separation as referred to in paragraph (1) must first:
a. notify Customers of the UUS Separation plan; and b. announce the UUS Separation plan through notice boards at the Head Office and Branch Offices that are easily accessible to the public.

Paragraph 2
Mechanism for Meeting Criteria

Article 32
(1) A Pawnshop Company that meets certain criteria established by the Financial Services Authority as referred to in Article 28 paragraph (2) letter a must carry out UUS Separation if:
a. the UUS asset value has reached at least 50% (fifty percent) of the total asset value of the parent Pawnshop Company; and b. the UUS Equity has reached at least the Minimum Equity of the parent Pawnshop Company, based on the latest annual financial reports for Pawnshop Companies required to submit annual financial reports audited by public accountants or the latest monthly reports for December for Pawnshop Companies not required to submit annual financial reports audited by public accountants. (2) A Pawnshop Company that meets the criteria as referred to in paragraph (1) must carry out UUS Separation within a maximum of 12 (twelve) months. (3) In the event that during the UUS Separation process as referred to in paragraph (2), UUS assets and/or Equity decrease and no longer meet the criteria as referred to in paragraph (1), the aforementioned condition does not eliminate the Pawnshop Company's obligation to carry out UUS Separation.

Article 33
The obligation to carry out UUS Separation by order of the Financial Services Authority in the context of consolidation as referred to in Article 28 paragraph (2) letter b is carried out for the development and strengthening of the pawnshop industry.

Article 34
(1) A Pawnshop Company that will carry out UUS Separation based on its own request as referred to in Article 28 paragraph (1) must obtain approval from the Financial Services Authority. (2) To obtain approval for the UUS Separation plan as referred to in paragraph (1), the Board of Directors must submit an application for UUS Separation approval to the Financial Services Authority by attaching the requirements documents for approval of the UUS Separation plan based on self-request listed in the Appendix in table 7 which is an integral part of this Financial Services Authority Regulation. (3) The approval application for the UUS Separation plan as referred to in paragraph (2) is submitted simultaneously with the application for competency and propriety assessment for prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and/or prospective members of the DPS of the new Sharia Pawnshop Company.

Article 35
(1) The Financial Services Authority provides approval or rejection of the approval application for the UUS Separation plan as referred to in Article 34 paragraph (2) within a maximum period of 20 (twenty) working days since the application documents are received completely. (2) A Pawnshop Company carrying out UUS Separation as referred to in Article 34 paragraph (1) may continue to conduct pawnshop business activities and Sharia-based pawnshop business activities until the Financial Services Authority provides approval or rejection of the UUS Separation approval application. (3) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on document completeness as referred to in Article 34 paragraph (2);

b. analysis of compliance with capital adequacy provisions;
c. feasibility analysis of the proposed Separation of Islamic Business Units (UUS);
d. assessment of competence and propriety regarding prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective Sharia Compliance Officers (PSP), and prospective members of the Sharia Supervisory Board (DPS) of the Islamic Pawn Company resulting from the Separation of UUS; and e. analysis of compliance with statutory regulations in the field of Sharia pawnbroking.

(4) In the event of missing documents as referred to in Article 34 paragraph (2), the Financial Services Authority (Otoritas Jasa Keuangan) submits a request for document completeness to the Company.

(5) The Company must submit the complete documents no later than 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority.

(6) If within the period of 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (4), the Financial Services Authority has not received the requested complete documents, the Company is deemed to have cancelled the application.

(7) The Financial Services Authority may conduct an inspection at the office of the Pawn Company and/or the Islamic Pawn Company resulting from the Separation of UUS to ensure readiness for the implementation of the Separation of UUS.

(8) In the event that the application for Separation of UUS as referred to in paragraph (1) is approved, the Financial Services Authority issues a letter of approval for the plan for Separation of UUS to the relevant Pawn Company.

(9) In the event that the application for Separation of UUS as referred to in paragraph (1) is rejected, the Financial Services Authority provides written notification accompanied by reasons for rejection.

Article 36

(1) A Pawn Company intending to carry out Separation of UUS because it meets certain criteria as referred to in Article 28 paragraph (2) letter a is required to submit a report on the plan for Separation of UUS to the Financial Services Authority no later than 15 (fifteen) working days calculated from the date the Pawn Company meets the certain criteria as referred to in Article 28 paragraph (2) letter a.

(2) The report on Separation of UUS as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching document requirements for reporting the plan for Separation of UUS meeting certain criteria contained in the Appendix in Table 8 which is an integral part of this Financial Services Authority Regulation.

(3) The report on the plan for Separation of UUS as referred to in paragraph (1) is submitted simultaneously with the application for competence and propriety assessment for prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and prospective members of the DPS of the new Islamic Pawn Company resulting from the Separation of UUS.

Article 37

(1) In processing the report as referred to in Article 36, the Financial Services Authority conducts:
a. analysis and research on document completeness as referred to in Article 36 paragraph (2); b. assessment of competence and propriety regarding prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and/or prospective members of the DPS of the new Islamic Pawn Company resulting from the Separation of UUS; and
c. analysis of compliance with statutory regulations in the field of Sharia pawnbroking.

(2) The Financial Services Authority may conduct an inspection at the office of the Pawn Company and/or the new Islamic Pawn Company resulting from the Separation of UUS to ensure readiness for the implementation of the Separation of UUS.

(3) The Financial Services Authority issues a letter of recording the report on the plan for Separation of UUS to the relevant Pawn Company.

Article 38

(1) A Pawn Company intending to carry out a plan for Separation of UUS due to an order from the Financial Services Authority as referred to in Article 28 paragraph (2) letter b is required to submit a report on Separation of UUS to the Financial Services Authority no later than 20 (twenty) working days calculated from the date of the order from the Financial Services Authority as referred to in Article 28 paragraph (2) letter b.

(2) The report on Separation of UUS as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching document requirements for reporting the plan for Separation of UUS based on the order from the Financial Services Authority contained in the Appendix in Table 9 which is an integral part of this Financial Services Authority Regulation.

Article 39

(1) In processing the report as referred to in Article 38, the Financial Services Authority conducts:
a. analysis and research on document completeness as referred to in Article 38 paragraph (2); b. assessment of competence and propriety regarding prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and/or prospective members of the DPS of the new Islamic Pawn Company resulting from the Separation of UUS; and
c. analysis of compliance with statutory regulations in the field of Sharia pawnbroking.

(3) The Financial Services Authority issues a letter of recording the report on the plan for Separation of UUS to the relevant Pawn Company.

Paragraph 3
General Meeting of Shareholders (RUPS)

Article 40

(1) A Pawn Company that has obtained approval or recording of the plan for Separation of UUS from the Financial Services Authority as referred to in Article 35 paragraph (8), Article 37 paragraph (3), and Article 39 paragraph (3) must implement a General Meeting of Shareholders (RUPS) that approves the Separation of UUS no later than 60 (sixty) working days calculated from the date of the approval or recording letter from the Financial Services Authority.

(2) In the event that the time limit as referred to in paragraph (1) has expired and the Pawn Company has not implemented the RUPS approving the Separation of UUS, the Financial Services Authority is authorized to cancel the approval or recording of the plan for Separation of UUS that has been granted.

Article 41

(1) A Pawn Company carrying out Separation of UUS is required to report the implementation of the RUPS to the Financial Services Authority no later than 15 (fifteen) working days calculated from the date of the RUPS implementation that approves the Separation of UUS.

(2) The report on the implementation of the RUPS approving the Separation of UUS as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching document requirements for reporting the implementation of the RUPS approving the Separation of UUS as contained in the Appendix in Table 10 which is an integral part of this Financial Services Authority Regulation.

(3) Based on the report on the implementation of the RUPS approving the Separation of UUS as referred to in paragraph (1), the Financial Services Authority:
a. conducts analysis and research on document completeness as referred to in paragraph (2); b. revokes the license for the establishment of the UUS in the event that the business license application to the new Islamic Pawn Company resulting from the Separation of UUS is approved; and
c. provides approval or rejection of the business license application to the new Islamic Pawn Company resulting from the Separation of UUS which becomes effective calculated from the date the Articles of Association are approved by the competent authority.

(4) In the event of missing documents as referred to in paragraph (2), the Financial Services Authority submits a request for document completeness to the Company.

(5) The Company must submit the complete documents no later than 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority.

(7) In the event that the application as referred to in paragraph (3) letter c is approved, the Financial Services Authority issues a letter of approval for the business license within a maximum period of 20 (twenty) days after the complete report documents as referred to in paragraph (2) are received.

(8) In the event that the application as referred to in paragraph (3) letter c is rejected, the Financial Services Authority provides written notification accompanied by reasons for rejection.

Article 42

(1) The new Islamic Pawn Company resulting from the Separation of UUS is required to report the implementation of the Separation of UUS to the Financial Services Authority no later than 15 (fifteen) working days calculated from the date the Articles of Association are approved, agreed upon, or notified to the competent authority.

(2) The report on the implementation of the Separation of UUS as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching document requirements for reporting the implementation of the Separation of UUS contained in the Appendix in Table 11 which is an integral part of this Financial Services Authority Regulation.

Paragraph 4
Closure of Islamic Business Units

Article 43

(1) A Company intending to close a UUS must obtain approval from the Financial Services Authority.

(2) The closure of a UUS is prohibited from harming the interests of Customers.

(3) A Company intending to carry out the closure of a UUS as referred to in paragraph (1) is required to:
a. notify Customers of the plan to close the UUS; b. submit procedures for settling Customer rights and obligations;
c. settle objections from Customers, if there are objections from Customers based on statutory regulations; and
d. settle the rights and obligations of the UUS owned based on statutory regulations.

(4) In carrying out obligations as referred to in paragraph (3), the Company is required to pay attention to the interests of the parties and other related stakeholders.

(5) To obtain approval for the closure of a UUS as referred to in paragraph (1), the Board of Directors must submit an application for approval for the closure of the UUS to the Financial Services Authority by attaching document requirements for approval for the closure of the UUS contained in the Appendix in Table 12 which is an integral part of this Financial Services Authority Regulation.

Article 44

(1) The Financial Services Authority provides approval or rejection of the application for approval for the closure of a UUS as referred to in Article 43 paragraph (5) within a maximum period of 20 (twenty) working days since the application for approval for the closure of the UUS was received completely.

(2) In processing the application for approval for the closure of a UUS as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on document completeness as referred to in Article 43 paragraph (5); and b. analysis of compliance with statutory regulations in the field of pawnbroking.

(3) In the event of missing documents as referred to in Article 43 paragraph (5), the Financial Services Authority submits a request for document completeness to the Company.

(4) The Company must submit the complete documents no later than 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority.

(5) If within the period of 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received the requested complete documents, the Company is deemed to have cancelled the application.

(6) In the event that the application for closure of a UUS as referred to in paragraph (1) is approved, the Financial Services Authority issues a letter of approval for the plan to close the UUS to the relevant Company.

(7) In the event that the application for closure of a UUS as referred to in paragraph (1) is rejected, the rejection is done in writing and accompanied by reasons for rejection.

Article 45

A Company that has obtained approval for the plan to close a UUS is required to:
a. implement a General Meeting of Shareholders (RUPS) that approves the cessation of UUS business activities; b. cease all UUS business activities;
c. announce the plan to cease UUS business activities and the plan to settle UUS obligations in a daily newspaper with national circulation no later than 15 (fifteen) working days from the date of the approval letter for the plan to close the UUS; and
d. settle all UUS rights and obligations no later than 1 (one) year from the date of the approval letter for the plan to close the UUS.

Article 46

(1) The Company is required to report the cessation of UUS business activities to the Financial Services Authority no later than 15 (fifteen) working days after all UUS rights and obligations as referred to in Article 43 paragraph (3) letter d are settled.

(2) The report on the cessation of UUS business activities as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching document requirements for reporting the cessation of UUS business activities contained in the Appendix in Table 13 which is an integral part of this Financial Services Authority Regulation.

(3) Based on the report as referred to in paragraph (1), the Financial Services Authority conducts:
a. research on the report on the implementation of the plan to close the UUS; and b. determines the decision to revoke the license for the establishment of the UUS.

Part Four
Administrative Sanctions

Article 47

(1) A Company that violates provisions as referred to in Article 21 paragraph (2), paragraph (3), Article 22, Article 23 paragraph (1), Article 25 paragraph (1), paragraph (2), Article 26, Article 27 paragraph (1), Article 28 paragraph (2), Article 31 paragraph (2), Article 32 paragraph (1), paragraph (2), Article 34 paragraph (1), Article 36 paragraph (1), Article 38 paragraph (1), Article 41 paragraph (1), Article 42 paragraph (1), Article 43 paragraph (1), paragraph (2), paragraph (3), paragraph (4), Article 45, and/or Article 46 paragraph (1) shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk level assessment results; e. cancellation of approval; f. prohibition from becoming a PSP, member of the Board of Directors, member of the Board of Commissioners, and/or member of the DPS; and/or g. administrative fine; and/or h. revocation of the Islamic business unit license.

(2) Administrative sanctions as in paragraph (1) letters b through h may be imposed with or without being preceded by the imposition of an administrative sanction in the form of a written warning as referred to in paragraph (1) letter a.

(3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah).

(4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority lifts the administrative sanction.

(5) 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 an administrative sanction in the form of a written warning that ends automatically.

(6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. reduce the Health Level assessment results; b. re-assess the main party causing the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of the party causing the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER VI
HEAD OFFICE AND BRANCH OFFICES

Article 48

Companies are required to clearly state information or details at every Head Office and Branch Office as follows:
a. name and/or logo of the Company; b. number and date of the business license and a statement that the Company is licensed and supervised by the Financial Services Authority;
c. operating days and hours; and
d. interest rates for Loans or service fees/returns and administrative costs.

Article 49

(1) Companies may open Branch Offices.

(2) A Company intending to open a Branch Office must meet the following requirements:
a. has included the plan to open a Branch Office in the business plan; b. has a Health Level set at a minimum Composite Rating 2;
c. has sufficient human resources;
d. has a place for storing Collateral Items; and e. is not currently subject to suspension of part or all of business activities or restriction of certain business activities.

Article 50

(1) A Company is required to report the opening of a Branch Office to the Financial Services Authority no later than 10 (ten) working days from the date of the opening of the Branch Office.

(2) The report on the opening of a Branch Office as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching document requirements for reporting the opening of a Branch Office contained in the Appendix in Table 14 which is an integral part of this Financial Services Authority Regulation.

Article 51

(1) A Company is required to report changes to the address of the Head Office and Branch Offices to the Financial Services Authority no later than 10 (ten) working days calculated from the date of the address change.

(2) The plan for address changes must be included in the business plan as referred to in the Financial Services Authority Regulation regarding the business plan of non-bank financial service institutions.

(3) The report on changes to the address of the Head Office and Branch Offices as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching document requirements for reporting changes to the address of the Head Office and Branch Offices as contained in the Appendix in Table 15 which is an integral part of this Financial Services Authority Regulation.

Article 52

(1) Companies are prohibited from opening or changing the address of the Head Office and Branch Offices outside the scope of the business area established in the business license grant decision from the Financial Services Authority.

(2) The provisions as referred to in paragraph (1) do not apply in the event of regional expansion that causes a Branch Office to be located in a different district/city or provincial business area scope than the Head Office.

Article 53

(1) A Company is required to report the closure of a Branch Office to the Financial Services Authority no later than 10 (ten) working days from the date of the closure of the Branch Office.

(2) A Company intending to close a Branch Office must include the plan to close the Branch Office in the business plan.

(3) The report on the closure of a Branch Office must be submitted by the Board of Directors to the Financial Services Authority by attaching document requirements for reporting the closure of a Branch Office contained in the Appendix in Table 16 which is an integral part of this Financial Services Authority Regulation.

Article 54

Provisions regarding requirements and procedures for the opening, address change, and closure of Branch Offices, as referred to in Article 49, Article 50 paragraph (1), Article 51 paragraph (1), and/or Article 53 paragraph (1) are determined by the Financial Services Authority.

Article 55

(1) A Company that violates provisions as referred to in Article 48, Article 50 paragraph (1), Article 51 paragraph (1), Article 52 paragraph (1), and/or Article 53 paragraph (1) shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk level assessment results; e. cancellation of approval; f. prohibition from becoming a PSP, member of the Board of Directors, member of the Board of Commissioners, and/or member of the DPS; and/or g. administrative fine.

(2) Administrative sanctions as in paragraph (1) letters b through g may be imposed with or without being preceded by the imposition of an administrative sanction in the form of a written warning as referred to in paragraph (1) letter a.

(3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah).

(4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority lifts the administrative sanction.

CHAPTER VII
HUMAN RESOURCES

Part One
Appraisers

Article 56

(1) A Company is required to have at least 1 (one) Appraiser to conduct appraisals of Collateral Items at each Branch Office.

(2) Appraisers as referred to in paragraph (1) are prohibited from holding concurrent positions at other Branch Offices.

Part Two
Foreign Workers

Article 57

(1) A Company whose shares are owned 25% (twenty-five percent) or more by foreign citizens and/or foreign legal entities either directly or indirectly may use foreign workers.

(2) A Company intending to use foreign workers must obtain approval from the Financial Services Authority.

(3) A Company is required to include the plan for using foreign workers in the business plan.

(4) To obtain approval for the use of foreign workers as referred to in paragraph (2),

The Board of Directors must submit a request for approval to the Financial Services Authority.
(5) The application as referred to in paragraph (4) must be accompanied by documents for the approval requirements for employing foreign workers listed in Appendix Table 17, which is an integral part of this Financial Services Authority Regulation. (6) The request for approval to employ foreign workers as referred to in paragraph (4) must be submitted to the Financial Services Authority before the Company submits a request for permission to use foreign workers to the agency handling labor affairs.

Article 58
(1) The Financial Services Authority grants approval or rejection of the request for approval to employ foreign workers as referred to in Article 57 paragraph (4) within a maximum period of 20 (twenty) working days from the date the complete application is received. (2) In granting approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 57 paragraph 5; b. clarification regarding the prospective foreign worker if necessary; and
c. analysis of compliance with legislation in the pawnshop sector.
(3) In the event of missing documents as referred to in Article 57 paragraph 5, the Financial Services Authority sends a request for document completeness to the Company.
(4) The Company must submit the complete documents within a maximum of 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (5) If within the period of 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received the complete documents, the Company is deemed to have cancelled the application. (6) In the event that the request for approval to employ foreign workers as referred to in paragraph (1) is approved, the Financial Services Authority issues a letter of approval to employ foreign workers to the relevant Company. (7) In the event that the request for approval to employ foreign workers as referred to in paragraph (1) is rejected, the rejection is done in writing and accompanied by the reasons for rejection. https://jdih.ojk.go.id/

Article 59
(1) Foreign workers as referred to in Article 57 paragraph (1) are prohibited from being employed other than as:
a. Directors who do not oversee the compliance, human resources, and audit fields of duty; or b. Board of Commissioners.
(2) Foreign workers employed as Directors and/or Board of Commissioners must meet the requirements:
a. have knowledge about Indonesia, especially regarding the economy, culture, and Indonesian language; and b. meet the provisions of legislation in the field of labor, including immigration. (3) Foreign workers employed as Directors are prohibited from exceeding 1 (one) member of the Board of Directors. (4) Foreign workers employed as Board of Commissioners are prohibited from exceeding 1 (one) member of the Board of Commissioners. (5) In the event that there are foreign workers who no longer meet the provisions as referred to in paragraph (2) letter b, the Financial Services Authority has the authority to request the Company to dismiss the aforementioned foreign worker. (6) The Company is obliged to fulfill the Financial Services Authority's request to dismiss foreign workers as referred to in paragraph (5).

Article 60
(1) Companies employing foreign workers as referred to in Article 59 are obliged to:
a. conduct knowledge transfer activities from foreign workers to Company employees; and b. appoint at least 1 (one) Indonesian worker as a companion for 1 (one) foreign worker. (2) Knowledge transfer as referred to in paragraph (1) letter a must be made in the form of an annual education and training program for Company employees. (3) The Company is obliged to report the implementation of the education and training program as referred to in paragraph (2) in writing to the Financial Services Authority within a maximum of 1 (one) month after the end of the calendar year for each year. (4) If the deadline for submitting the report as referred to in paragraph (3) falls on a holiday, the deadline for submitting the report is on the next working day.

Article 61
(1) Prospective foreign workers who will hold positions as Directors and/or Board of Commissioners must obtain approval from the Financial Services Authority https://jdih.ojk.go.id/

before carrying out actions, duties, and functions as Directors and/or Board of Commissioners.
(2) The Financial Services Authority's approval for the use of foreign workers as Directors and/or Board of Commissioners as referred to in paragraph (1) is conducted through an assessment of competence and propriety in accordance with the provisions of legislation regarding the assessment of competence and propriety for principal parties of financial service institutions. (3) The request for approval for the use of foreign workers as Directors and/or Board of Commissioners as referred to in paragraph (1) must be submitted to the Financial Services Authority before the Company submits a request for permission to use foreign workers to the agency handling labor affairs.

Third Section
Administrative Sanctions

Article 62
(1) Companies that violate the provisions as referred to in Article 56, Article 57 paragraph (2), paragraph (3), Article 59 paragraph (1), paragraph (3), paragraph (4), paragraph (6), Article 60 paragraph (1), paragraph (3), and/or Article 61 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming Major Shareholders, Directors, Board of Commissioners, and/or Sharia Supervisory Board members; and/or g. administrative fines. (2) Administrative sanctions as in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) 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 an administrative sanction in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the Health Level assessment results; https://jdih.ojk.go.id/

b. conduct a re-assessment of the principal parties that caused the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of the parties that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER VIII
CHANGE OF OWNERSHIP AND TAKEOVER, CHANGE OF BUSINESS AREA SCOPE, CHANGE OF CERTAIN ARTICLES OF ASSOCIATION, AND CHANGE OF DIRECTORS, COMMISSIONERS, AND SHARIA SUPERVISORY BOARD MEMBERS

First Section
Change of Ownership and Takeover

Article 63
(1) Any change of ownership must obtain approval from the Financial Services Authority.
(2) The plan for change of ownership as referred to in paragraph (1) must be included in the business plan as referred to in the provisions of legislation regarding the business plan of non-bank financial service institutions. (3) Any change of ownership through takeover must obtain approval from the General Meeting of Shareholders after obtaining approval from the Financial Services Authority as referred to in paragraph (1). (4) In the event that the change of ownership as referred to in paragraph (1) is caused by an increase in Paid-up Capital, the increase in Paid-up Capital is prohibited from being done other than in the form of:
a. cash deposits; b. conversion/transfer of profit balances;
c. conversion/transfer of Loans; and/or
d. bonus shares.
(5) In the event that the Company trades its shares on the stock exchange, the obligation for approval of change of ownership as referred to in paragraph (1) applies if there is a change in Major Shareholders.

Article 64
(1) Companies that have obtained business licenses at the time this Financial Services Authority Regulation takes effect and will carry out changes of ownership through takeover must adjust the provisions regarding Paid-up Capital in accordance with the scope of business area as referred to in Article 6 paragraph (2). (2) Companies that will carry out changes of ownership through takeover originating from inheritance are exempted from the obligation to adjust Paid-up Capital as referred to in paragraph (1). https://jdih.ojk.go.id/

Article 65
(1) The request for approval for change of ownership as referred to in Article 63 paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the documents for the approval requirements for change of ownership listed in Appendix Table 18, which is an integral part of this Financial Services Authority Regulation. (2) In the event that the change of ownership results in new Major Shareholders, the Financial Services Authority conducts an assessment of competence and propriety for the prospective Major Shareholders. (3) The request for approval for change of ownership as referred to in paragraph (1) is submitted simultaneously with the request for assessment of competence and propriety for prospective Major Shareholders.

Article 66
(1) The Financial Services Authority grants approval or rejection of the request for approval for change of ownership as referred to in Article 65 paragraph (1) within a maximum period of 20 (twenty) working days from the date the application is received completely. (2) In granting approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 65 paragraph (1); b. feasibility analysis of the change of ownership plan;
c. assessment of competence and propriety for prospective Major Shareholders, if the change of ownership is through takeover; and
d. analysis of compliance with legislation in the pawnshop sector.
(3) In the event of missing documents as referred to in Article 65 paragraph (1), the Financial Services Authority sends a request for document completeness to the Company.
(4) The Company must submit complete documents within a maximum of 20 (twenty) working days from the date of the document completeness request letter submitted by the Financial Services Authority. (5) If within the period of 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received the complete documents, the Company is deemed to have cancelled the application. (6) In the event that the request for change of ownership as referred to in paragraph (1) is approved, the Financial Services Authority issues a letter of approval for change of ownership to the relevant Company. https://jdih.ojk.go.id/

(7) In the event that the request for change of ownership as referred to in paragraph (1) is rejected, the Financial Services Authority sends written notification accompanied by the reasons for rejection.

Article 67
(1) In the event that the Company's change of ownership requires approval from the General Meeting of Shareholders, the Company that has obtained approval for change of ownership as referred to in Article 66 paragraph (1) from the Financial Services Authority must hold a General Meeting of Shareholders approving the change of ownership within a maximum of 60 (sixty) working days calculated from the date of the Financial Services Authority's approval letter. (2) Reporting on the implementation of the General Meeting of Shareholders approving the change of ownership as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the documents for the reporting requirements for the implementation of the General Meeting of Shareholders approving the change of ownership listed in Appendix Table 19, which is an integral part of this Financial Services Authority Regulation. (3) In the event that the Company has not held a General Meeting of Shareholders approving the change of ownership within the period as referred to in paragraph (1), the Financial Services Authority has the authority to cancel the approval for change of ownership that has been granted.

Article 68
(1) Companies that obtain approval for change of ownership are obliged to report the implementation of the change of ownership to the Financial Services Authority within a maximum of 15 (fifteen) working days calculated from the date of receipt of the acceptance notification letter from the competent agency. (2) Reporting on the implementation of the change of ownership as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the documents for the reporting requirements for the implementation of the change of ownership listed in Appendix Table 20, which is an integral part of this Financial Services Authority Regulation.

Second Section
Change of Business Area Scope

Article 69
(1) Companies may carry out changes in the scope of their business area.
(2) Changes in the scope of business area as referred to in paragraph (1) include:
a. increase in the scope of business area; and b. decrease in the scope of business area. https://jdih.ojk.go.id/

(3) Increasing the scope of business area as referred to in paragraph (2) letter a must meet the requirements:
a. the plan to increase the scope of business area is included in the business plan; b. has obtained approval for increasing the scope of business area in the General Meeting of Shareholders;
c. Equity of the target business area scope;
d. number of Directors, Board of Commissioners, and Sharia Supervisory Board members; e. number of Appraisers; f. Health Level with a minimum Composite Rating of 2; and g. is not currently subject to sanctions of suspension of part or all of business activities or restriction of certain business activities. (4) Provisions regarding the fulfillment of Equity of the target business area scope as referred to in paragraph (3) letter c are exempted in the event that the increase in business area scope is carried out based on a request from a Company undergoing Merger and/or Consolidation. (5) Increasing the business area scope based on a request from a Company undergoing Merger and/or Consolidation must meet Equity provisions as follows:
a. increasing the business area scope to the provincial scope, must meet Equity of IDR 3,600,000,000.00 (three billion six hundred million rupiah); or b. increasing the business area scope to the national scope, must meet Equity of IDR 45,000,000,000.00 (forty-five billion rupiah), within a maximum of 2 (two) years after the implementation of Merger and/or Consolidation. (6) Decreasing the scope of business area as referred to in paragraph (2) letter b must meet the requirements:
a. the plan to decrease the scope of business area is included in the business plan as referred to in the Financial Services Authority Regulation regarding the business plan of non-bank financial service institutions; b. has obtained approval for decreasing the scope of business area from the General Meeting of Shareholders; and
c. number of Appraisers.
(7) Companies that carry out a decrease in the scope of business area as referred to in paragraph (2) letter b are prohibited from reducing Paid-up Capital.
(8) The Financial Services Authority has the authority to order the Company to decrease the scope of business area to maintain the Company's Health Level.
(9) The Company is obliged to decrease the scope of business area upon the order of the Financial Services Authority as referred to in paragraph (8). https://jdih.ojk.go.id/

Article 70
(1) Changes in the scope of business area must obtain approval from the Financial Services Authority.
(2) To obtain approval for changes in the scope of business area as referred to in paragraph (1), the Board of Directors must submit a request for approval to the Financial Services Authority by attaching the documents for the approval requirements for changes in the scope of business area listed in Appendix Table 21, which is an integral part of this Financial Services Authority Regulation.

Article 71
(1) The Financial Services Authority grants approval or rejection of the request for approval for changes in the scope of business area as referred to in Article 70 paragraph (2) within a maximum period of 20 (twenty) working days from the date the application is received completely. (2) In granting approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 70 paragraph (2); b. feasibility analysis of the plan for changes in the scope of business area; and
c. analysis of compliance with legislation in the pawnshop sector.
(3) In the event of missing documents as referred to in Article 70 paragraph (2), the Financial Services Authority sends a request for document completeness to the Company.
(4) The Company must submit complete documents within a maximum of 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (5) If within the period of 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received the complete documents, the Company is deemed to have cancelled the application. (6) In the event that the request for changes in the scope of business area as referred to in paragraph (1) is approved, the Financial Services Authority issues a letter of approval for changes in the scope of business area to the relevant Company. (7) In the event that the request for changes in the scope of business area as referred to in paragraph (1) is rejected, the Financial Services Authority sends written notification accompanied by the reasons for rejection. https://jdih.ojk.go.id/

Article 72
(1) In the event that there is a division of a province or district/city, the Company may choose to:
a. increase the scope of business area; or b. choose one of the provinces or districts/cities resulting from the division as the scope of business area.
(2) The Company is obliged to make the choice as referred to in paragraph (1) within a maximum period of 2 (two) years since the establishment of the division of the area.
(3) Provisions regarding:
a. requirements for increasing the scope of business area as referred to in Article 69 paragraph (3); and b. approval for changes in the scope of business area as referred to in Article 70 paragraph (1), apply mutatis mutandis to the increase in the scope of business area as referred to in paragraph (1) letter a. (4) Companies that choose to select one of the provinces or districts/cities resulting from the division as the scope of business area as referred to in paragraph (1) letter b are obliged to report to the Financial Services Authority. (5) Reporting on the determination of the scope of business area resulting from the division as referred to in paragraph (4) must be submitted by the Board of Directors by attaching the documents for the reporting requirements for the determination of the scope of business area resulting from the division listed in Appendix Table 22, which is an integral part of this Financial Services Authority Regulation. (6) Based on the reporting on the determination of the scope of business area resulting from the division as referred to in paragraph (5), the Financial Services Authority establishes a decision granting a business license in accordance with the new scope of business area.

Third Section
Change of Certain Articles of Association and Change of Directors, Commissioners, and Sharia Supervisory Board Members

Article 73
(1) Companies are obliged to report changes to certain articles of association including:
a. purpose and objectives as well as business activities of the Company; b. name of the Company;
c. location of the Company's headquarters; and/or
d. status of the Company changing from closed to open or vice versa, https://jdih.ojk.go.id/

to the Financial Services Authority within a maximum of 15 (fifteen) working days since the approval or receipt of the notification letter from the competent agency.
(2) Reporting on changes to certain articles of association as referred to in paragraph (1) must be submitted by attaching the documents for the reporting requirements for changes to certain articles of association listed in Appendix Table 23, which is an integral part of this Financial Services Authority Regulation.

Article 74
(1) Companies that carry out changes:
a. to Directors; b. to Board of Commissioners members; and/or
c. to Sharia Supervisory Board members,
are obliged to submit reports to the Financial Services Authority within a maximum of 15 (fifteen) working days after the changes are recorded by the competent agency.
(2) Reporting on changes to Directors, Board of Commissioners members, and/or Sharia Supervisory Board members must be submitted by the Board of Directors by attaching the documents for the reporting requirements for changes to Directors, Board of Commissioners members, and/or Sharia Supervisory Board members listed in Appendix Table 24, which is an integral part of this Financial Services Authority Regulation.

Fourth Section
Administrative Sanctions

Article 75
(1) Companies that violate the provisions as referred to in Article 63 paragraph (1), paragraph (4), Article 64 paragraph (1), Article 68 paragraph (1), Article 69 paragraph (5), paragraph (7), paragraph (9), Article 70 paragraph (1), Article 72 paragraph (2), paragraph (4), Article 73 paragraph (1), and/or Article 74 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming Major Shareholders, Directors, Board of Commissioners, and/or Sharia Supervisory Board members; and/or g. administrative fines. (2) Administrative sanctions as in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most IDR 50,000,000.00 (fifty million rupiah). https://jdih.ojk.go.id/

(4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction.
(5) In the event of a violation of the provisions as referred to in paragraph (1) and the violation has been remedied, the Financial Services Authority imposes an administrative sanction in the form of a written warning that ends automatically. (6) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. lower the Health Level assessment results; b. conduct a re-evaluation of the main party that caused the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of the party that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER IX
MERGER AND CONSOLIDATION

Article 76
The Company may conduct:
a. Merger; or b. Consolidation.

Article 77
(1) A Company intending to conduct a Merger or Consolidation must first obtain approval from the Financial Services Authority.
(2) To obtain approval for Merger or Consolidation as referred to in paragraph (1), the following requirements must be met:
a. it has been included in the Company's business plan; b. it does not reduce or harm the rights of Customers;
c. the financial condition of the Company resulting from the Merger or Consolidation must meet the minimum Equity requirements stipulated; and
d. it does not cause the Company to violate the provisions regulated in this Financial Services Authority Regulation.
(3) Merger or Consolidation as referred to in paragraph (1) may only be conducted by Companies of the same legal entity form and having the same principle of business conduct. (4) To obtain approval for Merger or Consolidation as referred to in paragraph (1), the Board of Directors must submit an application for approval to the Financial Services Authority by attaching the document requirements for Merger or Consolidation approval listed in the Appendix in Table 25 https://jdih.ojk.go.id/ which is an inseparable part of this Financial Services Authority Regulation. (5) The application for approval for Merger or Consolidation as referred to in paragraph (4) is submitted simultaneously with the application for assessment of competence and propriety for prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and/or prospective members of the DPS of the resulting Company from the Merger or Consolidation.

Article 78
(1) The Financial Services Authority provides approval or rejection of the application for approval for Merger or Consolidation as referred to in Article 77 paragraph (4) within a maximum period of 20 (twenty) working days since the application for approval for Merger or Consolidation was received in complete form. (2) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 77 paragraph (4); b. feasibility analysis of the implementation plan for Merger or Consolidation;
c. assessment of competence and propriety for prospective members of the Board of Directors, prospective members of the Board of Commissioners, prospective PSPs, and/or prospective members of the DPS; and
d. analysis of compliance with legislation in the field of pawnshops.
(3) In the event of missing documents as referred to in Article 77 paragraph (4), the Financial Services Authority submits a request for document completeness to the Company. (4) The Company must submit document completeness within a maximum of 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (5) If within the period of 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received the requested document completeness, the Company is deemed to have cancelled the application. (6) In the event that the application for approval for Merger or Consolidation as referred to in paragraph (1) is approved, the Financial Services Authority issues a letter of approval for the implementation plan for Merger or Consolidation to the relevant Company. (7) In the event that the application for approval for Merger or Consolidation as referred to in paragraph (1) is rejected, the Financial Services Authority provides written notification accompanied by the reasons for rejection. https://jdih.ojk.go.id/ (8) Rights and obligations arising after conducting Merger or Consolidation become the responsibility of the Company that will receive the Merger or the resulting Company from the Consolidation.

Article 79
(1) A Company that has obtained approval for the implementation plan for Merger or Consolidation from the Financial Services Authority must hold a General Meeting of Shareholders (GMS) approving the Merger or Consolidation within a maximum of 60 (sixty) working days counted from the date of the Financial Services Authority's approval letter. (2) In the event that the time period as referred to in paragraph (1) has expired and the Company has not held the GMS approving the Merger or Consolidation, the Financial Services Authority has the authority to cancel the approval for Merger or Consolidation that has been granted.

Article 80
(1) The Company:
a. that receives the Merger; or b. the result of the Consolidation, must report the implementation of the GMS approving the Merger or Consolidation to the Financial Services Authority within a maximum of 15 (fifteen) working days counted from the date of the GMS. (2) The reporting of the implementation of the GMS approving the Merger or Consolidation as referred to in paragraph (1) must be submitted by the Board of Directors by attaching the document requirements for reporting the implementation of the GMS approving the Merger or Consolidation listed in the Appendix in Table 26 which is an inseparable part of this Financial Services Authority Regulation.

Article 81
(1) For the reporting of the implementation of the GMS approving the Merger as referred to in Article 80 paragraph (1), the Company receiving the Merger may submit an application for a license to establish a Branch Office (UUS) previously owned by the merging Company under its name to the Financial Services Authority. (2) To obtain the license to establish a Branch Office (UUS) as referred to in paragraph (1), the Board of Directors must submit an application for a license to the Financial Services Authority by attaching the document requirements for the license to establish a Branch Office (UUS) for the Company receiving the Merger listed in the Appendix in Table 27 which is an inseparable part of this Financial Services Authority Regulation. (3) The Company receiving the Merger is prohibited from operating the Branch Office (UUS) previously owned by the merging Company before obtaining approval from the Financial Services Authority. https://jdih.ojk.go.id/

Article 82
(1) The Financial Services Authority provides approval or rejection of the application for a license to establish a Branch Office (UUS) as referred to in Article 81 paragraph (2) within a maximum period of 20 (twenty) working days since the application for a license to establish a Branch Office (UUS) was received in complete form. (2) Based on the reporting of the implementation of the GMS approving the Merger as referred to in Article 80 paragraph (2) and in the event of an application for a license to establish a Branch Office (UUS) as referred to in Article 81 paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 80 paragraph (2) and Article 81 paragraph (2); b. revocation of business license and/or license to establish a Branch Office (UUS) from the merging Company (if any), which becomes effective counted from the date the Articles of Association are approved by, or notified to, the competent authority; and
c. approval or rejection of the application for a license to establish a Branch Office (UUS) to the Company that is the result of the Merger (if any), which becomes effective counted from the date the Articles of Association are approved by, or notified to, the competent authority.
(3) In the event of missing documents as referred to in Article 80 paragraph (2) and Article 81 paragraph (2), the Financial Services Authority submits a request for document completeness to the Company. (4) The Company must submit document completeness within a maximum of 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (5) If within the period of 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received the requested document completeness, the Company is deemed to have cancelled the application. (6) In the event that the application for a license to establish a Branch Office (UUS) as referred to in paragraph (1) is approved, the Financial Services Authority establishes a decision on the granting of the license to establish a Branch Office (UUS). (7) In the event that the application for a license to establish a Branch Office (UUS) as referred to in paragraph (1) is rejected, the Financial Services Authority provides written notification accompanied by the reasons for rejection. https://jdih.ojk.go.id/

Article 83
(1) The resulting Company from the Merger must report the implementation of the Merger to the Financial Services Authority within a maximum of 15 (fifteen) working days counted from the date the Articles of Association are approved by or notified to the competent authority. (2) The reporting of the implementation of the Merger as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the document requirements for reporting the implementation of the Merger listed in the Appendix in Table 28 which is an inseparable part of this Financial Services Authority Regulation.

Article 84
(1) For the reporting of the implementation of the GMS approving the Consolidation as referred to in Article 80 paragraph (1), the resulting Company from the Consolidation may submit an application for a license to establish a Branch Office (UUS) previously owned by the consolidating Company under its name to the Financial Services Authority. (2) To obtain the license to establish a Branch Office (UUS) as referred to in paragraph (1), the Board of Directors must submit an application for a license to the Financial Services Authority by attaching the document requirements for the license to establish a Branch Office (UUS) for the resulting Company from the Consolidation listed in the Appendix in Table 29 which is an inseparable part of this Financial Services Authority Regulation. (3) The resulting Company from the Consolidation is prohibited from operating the Branch Office (UUS) previously owned by the consolidating Company before obtaining approval from the Financial Services Authority.

Article 85
(1) The Financial Services Authority provides approval or rejection of the application for a license to establish a Branch Office (UUS) as referred to in Article 84 paragraph (2) within a maximum period of 20 (twenty) working days since the application for a license to establish a Branch Office (UUS) was received in complete form. (2) Based on the reporting of the implementation of the GMS approving the Consolidation as referred to in Article 80 paragraph (2) and in the event of an application for a license to establish a Branch Office (UUS) as referred to in Article 84 paragraph (2), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 80 paragraph (2) and/or Article 84 paragraph (2); b. revocation of business license and/or license to establish a Branch Office (UUS) from the consolidating Company (if any), which becomes effective counted from the date the Articles of Association are ratified, approved by, or notified to the competent authority; and https://jdih.ojk.go.id/
c. approval or rejection of the application for the business license of the resulting Company from the Consolidation and/or license to establish a Branch Office (UUS) to the Company that is the result of the Consolidation (if any), which becomes effective counted from the date the Articles of Association are ratified, approved by, or notified to the competent authority.
(3) In the event of missing documents as referred to in Article 80 paragraph (2) and Article 84 paragraph (2), the Financial Services Authority submits a request for document completeness to the Company. (4) The Company must submit document completeness within a maximum of 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (5) If within the period of 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received the requested document completeness, the Company is deemed to have cancelled the application. (6) In the event that the application for a license to establish a Branch Office (UUS) as referred to in paragraph (1) is approved, the Financial Services Authority establishes a decision on the granting of the business license of the resulting Company from the Consolidation and/or license to establish a Branch Office (UUS). (7) In the event that the application for a license to establish a Branch Office (UUS) as referred to in paragraph (1) is rejected, the Financial Services Authority provides written notification accompanied by the reasons for rejection.

Article 86
(1) The resulting Company from the Consolidation must report the implementation of the Consolidation to the Financial Services Authority within a maximum of 15 (fifteen) working days counted from the date the Articles of Association are ratified to the competent authority. (2) The reporting of the implementation of the Consolidation as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the document requirements for reporting the implementation of the Consolidation listed in the Appendix in Table 30 which is an inseparable part of this Financial Services Authority Regulation.

Article 87
(1) A Company that violates the provisions as referred to in Article 77 paragraph (1), Article 80 paragraph (1), Article 81 paragraph (3), Article 83 paragraph (1), Article 84 paragraph (3), and/or Article 86 paragraph (1) is subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk level assessment results; e. cancellation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of an administrative sanction in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most Rp50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event of a violation of the provisions as referred to in paragraph (1) and the violation has been remedied, the Financial Services Authority imposes an administrative sanction in the form of a written warning that ends automatically. (6) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. lower the Health Level assessment results; b. conduct a re-evaluation of the main party that caused the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of the party that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER X
ASSOCIATION

Article 88
(1) The Company must be registered as a member of the Association.
(2) The Company must fulfill the provisions as referred to in paragraph (1) within a maximum of 6 (six) months from the date of the business license determination.

Article 89
(1) The Association must obtain written approval from the Financial Services Authority.
(2) To obtain written approval as referred to in paragraph (1), the Association must submit a written application to the Financial Services Authority by attaching the document requirements for written approval listed in the Appendix in Table 31 which is an inseparable part of this Financial Services Authority Regulation. https://jdih.ojk.go.id/

Article 90
(1) The Financial Services Authority provides approval or rejection of the application for Association approval as referred to in Article 89 paragraph (2) within a maximum period of 20 (twenty) working days since the application was received in complete form. (2) In providing approval or rejection as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 89 paragraph (2); and b. assessment of feasibility, financial reputation, and integrity of the prospective chairman or equivalent who does not serve as a member of the Board of Directors or member of the Board of Commissioners, if any. (3) The Financial Services Authority may conduct an inspection at the Association's office to ensure the Association's operational readiness. (4) In the event of missing documents, the Financial Services Authority submits a request for document completeness to the Association. (5) The Association submits missing documents within a maximum of 20 (twenty) working days since the date of the document completeness request letter submitted by the Financial Services Authority. (6) If within the period of 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (4) the Financial Services Authority has not received the document completeness, the Association is deemed to have cancelled the approval application. (7) In the event that the application for Association approval as referred to in paragraph (1) is approved, the Financial Services Authority issues a letter of Association approval. (8) In the event that the application for Association approval as referred to in paragraph (1) is rejected, the rejection is done in writing and accompanied by the reasons for rejection.

Article 91
(1) The Association must report every change:
a. management within a maximum of 10 (ten) working days since the change occurred; b. Articles of Association and/or House Rules within a maximum of 10 (ten) working days since the proof of approval, proof of ratification and/or letter of acceptance of notification from the competent authority;
c. code of ethics within a maximum of 10 (ten) working days since the change occurred; and
d. work program within a maximum of 10 (ten) working days since the change occurred.
(2) The reporting of changes in management, Articles of Association and/or House Rules, code of ethics, and/or work program as referred to in paragraph (1) must be submitted by the Association to the Financial Services Authority by attaching the document requirements for reporting changes in management, Articles of Association and/or House Rules, code of ethics, and/or work program listed in the Appendix in Table 32 which is an inseparable part of this Financial Services Authority Regulation. (3) Based on the reporting as referred to in paragraph (2) or complaints from Association members, the Financial Services Authority may conduct an evaluation and order the Association to take corrective action.

Article 92
(1) The Association plays a role in building market-based discipline supervision for the strengthening and/or rehabilitation of Companies and helps manage consumer/public complaints. (2) The Association has at least the following duties:
a. coordinate and establish codes of conduct; b. coordinate inputs from the industry in the formulation of policies and development of pawnshops;
c. conduct continuous education and training; and
d. other duties as assigned by the Financial Services Authority.
(3) In carrying out the role as referred to in paragraph (1) and duties as referred to in paragraph (2), the Association must have and enforce a code of ethics and code of conduct. (4) The Company must comply with the code of ethics and code of conduct as referred to in paragraph (3). (5) The Financial Services Authority has the authority to request the Association to take specific actions to ensure the implementation of the Association's role as referred to in paragraph (1) and duties as referred to in paragraph (2).

Article 93
The Association must have an ethics committee function in its organizational structure.

Article 94
(1) The Association must submit an annual report to the Financial Services Authority within a maximum of 4 (four) months after the fiscal year ends.
(2) The annual report as referred to in paragraph (1) is first submitted for the 2027 reporting period. https://jdih.ojk.go.id/

Article 95
(1) A Company that violates the provisions as referred to in Article 88 and Article 92 paragraph (4) is subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk level assessment results; e. cancellation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of an administrative sanction in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most Rp50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event of a violation of the provisions as referred to in paragraph (1) and the violation has been remedied, the Financial Services Authority imposes an administrative sanction in the form of a written warning that ends automatically. (6) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. lower the Health Level assessment results; b. conduct a re-evaluation of the main party that caused the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of the party that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

Article 96
(1) An Association that violates the provisions as referred to in Article 91 paragraph (1), Article 92 paragraph (3), Article 93, and/or Article 94 paragraph (1) is subject to administrative sanctions in the form of:
a. written warning; and/or b. cancellation of approval.
(2) Administrative sanctions as referred to in paragraph (1) letter b may be imposed with or without prior imposition of an administrative sanction in the form of a written warning as referred to in paragraph (1) letter a. (3) In the event that the Association has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority https://jdih.ojk.go.id/

The Ministry of Finance revokes administrative sanctions in the form of written warnings.
(4) 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 provides an administrative sanction in the form of a written warning that ends automatically. (5) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to record the track record of the party causing the Association to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER XI
REVOCATION OF BUSINESS LICENSE

Section One
Revocation of Business License

Article 97
(1) The revocation of a Company's business license is carried out by the Financial Services Authority.
(2) The revocation of the business license as referred to in paragraph (1) is carried out in the event that the Company:
a. dissolves as a follow-up to:

a decision of the General Meeting of Shareholders;
a court decision;
a government decision; or
a follow-up to the bankruptcy process as regulated in laws concerning bankruptcy and suspension of debt payment obligations;
b. is subject to an administrative sanction in the form of revocation of the business license;
c. dissolves due to a Merger or Consolidation;
d. has not carried out business activities for a period determined by the Financial Services Authority since the date the business license was established; or e. submits a request for revocation of the business license based on its own request. (3) A Company whose business license has been revoked as referred to in paragraph (2) is required to conduct Liquidation or settlement in accordance with the provisions of applicable laws and regulations.

Section Two
Bankruptcy and Petition for Suspension of Debt Payment Obligations

Article 98
(1) The Financial Services Authority is the sole party authorized to submit a petition for a declaration of bankruptcy and/or a petition for suspension of debt payment obligations against a debtor that is a Company. (2) Provisions regarding the mechanism of bankruptcy and suspension of debt payment obligations follow the provisions of laws and regulations concerning bankruptcy and suspension of debt payment obligations. (3) In the event that the settlement of assets of a Company declared bankrupt has been carried out and the Company's bankruptcy has ended, the Financial Services Authority revokes the Company's business license.

Section Three
Request for Revocation of Business License Based on Own Request

Article 99
(1) A Company that will cease business activities based on its own request is required to submit a request for approval of the revocation of the business license to the Financial Services Authority. (2) A Company that will cease its business activities as referred to in paragraph (1) must meet the following requirements:
a. is not currently subject to sanctions of suspension of part or all of business activities or restriction of certain business activities; b. is not currently undergoing rehabilitation efforts; and
c. the Company has fulfilled its obligations.
(3) To obtain approval for the revocation of the business license based on its own request as referred to in paragraph (1), the Board of Directors must submit a request to the Financial Services Authority by attaching the document requirements for approval of the revocation of the business license based on its own request contained in the Appendix in Table 33 which is an integral part of this Financial Services Authority Regulation. (4) The Financial Services Authority may conduct clarification with members of the Board of Directors, members of the Board of Commissioners, and/or other parties related to the Company to ensure the revocation of the business license based on its own request. (5) In the event that the Financial Services Authority grants approval for the request for revocation of the business license, it is done no later than 20 (twenty) working days since the request was received completely. (6) In the event of missing documents as referred to in paragraph (3), the Financial Services Authority submits a request for document completeness to the Company. (7) The Company must submit document completeness no later than 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (8) If within a period of 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (6), the Financial Services Authority has not received the requested document completeness, the Company is deemed to have canceled the request. (9) In the event that the request for approval of the revocation of the business license based on its own request as referred to in paragraph (1) is approved, the Financial Services Authority issues a letter of approval for the plan to revoke the business license based on its own request to the respective Company. (10) In the event that the request for approval of the revocation of the business license based on its own request as referred to in paragraph (1) is rejected, the rejection is done in writing and accompanied by reasons for rejection.

Article 100
In the event that the Financial Services Authority grants approval for the revocation of the business license based on its own request as referred to in Article 99 paragraph (9), the Company is required to:
a. cease all of the Company's business activities; b. announce the plan to cease business activities and the plan to settle the Company's obligations in a daily newspaper for 3 (three) consecutive days no later than 15 (fifteen) working days since the date of the letter of approval for the plan to revoke the business license based on its own request; and
c. appoint a public accountant to conduct an audit on the final financial position report including conducting verification to ensure the settlement of all rights and obligations of the Company.

Article 101
(1) The Company is required to report the implementation of obligations as referred to in Article 100 no later than 20 (twenty) working days after the deadline as referred to in Article 100 letter c ends. (2) The reporting of the implementation of obligations as referred to in paragraph (1) must be accompanied by document requirements for obligation reporting after the approval of the revocation of the business license based on its own request contained in the Appendix in Table 34 which is an integral part of this Financial Services Authority Regulation. (3) The Financial Services Authority analyzes the report on the cessation of the Company's business activities submitted by the Board of Directors as referred to in paragraph (2). (4) To conduct the analysis as referred to in paragraph (1), the Financial Services Authority may conduct a direct examination of the Company submitting the request for revocation of the business license based on its own request. (5) The Financial Services Authority issues a decision on the revocation of the Company's business license within a period no later than 20 (twenty) working days since the complete report was received.

Section Four
Obligations and Prohibitions for Companies Post-Revocation of Business License

Article 102
(1) The Company must cease business activities since the revocation of the Company's business license.
(2) Shareholders/members, the Board of Directors, the Board of Commissioners, and/or employees of the Company are prohibited from transferring, pledging, mortgaging, using assets, and/or taking other actions that can reduce assets or lower the value of the Company's assets since the revocation of the Company's business license.

Article 103
(1) The Board of Directors is required to prepare and submit the Closing Balance Sheet to the Financial Services Authority no later than 15 (fifteen) working days since the date of the revocation of the Company's business license. (2) If within the period as referred to in paragraph (1) the Closing Balance Sheet is not submitted to the Financial Services Authority, the Financial Services Authority appoints a public accountant registered with the Financial Services Authority to prepare the Closing Balance Sheet within a specific deadline. (3) The specific deadline as referred to in paragraph (2) is no later than 50 (fifty) working days since the date of the appointment of the public accountant registered with the Financial Services Authority. (4) In the event that the Closing Balance Sheet is prepared by a public accountant registered with the Financial Services Authority as referred to in paragraph (2), the responsibility for the Closing Balance Sheet remains with the Board of Directors. (5) The costs of preparing the Closing Balance Sheet by a public accountant registered with the Financial Services Authority as referred to in paragraph (2) become the burden of the Company. (6) The Financial Services Authority submits the closing balance sheet to the Liquidation Team after receiving the closing balance sheet prepared and submitted by:
a. the Board of Directors as referred to in paragraph (1); or b. the public accountant as referred to in paragraph (2) and paragraph (3).
(7) The Company is required to appoint a person in charge and employees tasked as a task force and service center to serve the interests of Customers and the public until the Liquidation Team is formed. (8) The appointment of the person in charge and employees tasked as a task force and service center as referred to in paragraph (7) must be reported to the Financial Services Authority no later than 5 (five) working days since the notification of the revocation of the business license from the Financial Services Authority.

Section Five
Dissolution and Liquidation

Paragraph 1
Dissolution

Article 104
(1) A Company whose business license has been revoked is required to hold a General Meeting of Shareholders to decide on the Dissolution and form a Liquidation Team no later than 30 (thirty) working days since the date the business license was revoked. (2) Members of the Liquidation Team as referred to in paragraph (1) must first obtain approval from the Financial Services Authority. (3) To obtain approval from the Financial Services Authority as referred to in paragraph (2), the Board of Directors must submit a request for approval to the Financial Services Authority by attaching the document requirements for approval of the formation of the Liquidation Team contained in the Appendix in Table 35 which is an integral part of this Financial Services Authority Regulation. (4) Documents as referred to in paragraph (3) must be submitted to the Financial Services Authority no later than 20 (twenty) working days before the date of the implementation of the General Meeting of Shareholders. (5) The Financial Services Authority grants approval or rejection of the proposal for candidate members of the Liquidation Team as referred to in paragraph (2) no later than 20 (twenty) working days after the documents are received completely. (6) In the event of missing documents as referred to in paragraph (3), the Financial Services Authority submits a request for document completeness to the Company. (7) The Company must submit document completeness no later than 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (8) If within a period of 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (6), the Financial Services Authority has not received the requested document completeness, the Company is deemed to have canceled the request. (9) In the event that the Financial Services Authority approves the proposal for candidate members of the Liquidation Team, the Financial Services Authority issues a letter of approval for the proposal for candidate members of the Liquidation Team. (10) In the event that the Financial Services Authority rejects the proposal for candidate members of the Liquidation Team, the Board of Directors is required to submit a new proposal for candidate members of the Liquidation Team and submit documents as referred to in paragraph (3) no later than 20 (twenty) working days after receiving the notification from the Financial Services Authority.

Article 105
(1) In Dissolution, the Liquidation Team formed by the General Meeting of Shareholders as referred to in Article 104 paragraph (1) is required to register and notify the Dissolution to the competent agency, and announce it in the State Gazette of the Republic of Indonesia. (2) The registration, notification, and announcement actions as referred to in paragraph (1) are carried out by the Liquidation Team no later than 30 (thirty) working days since the date of the Dissolution decision by the General Meeting of Shareholders. (3) The notification and announcement as referred to in paragraph (1) contain:
a. Dissolution and its legal basis; b. the name and address of the Liquidation Team;
c. the procedure for submitting claims; and
d. the period for submitting claims.
(4) The period for submitting claims as referred to in paragraph (3) letter d is no later than 60 (sixty) working days calculated from the date of announcement as referred to in paragraph (1).

Article 106
(1) If within the period as in Article 104 paragraph (1) the General Meeting of Shareholders cannot be held or the General Meeting of Shareholders can be held but fails to decide on Dissolution and/or fails to form a Liquidation Team, the Financial Services Authority:
a. decides on Dissolution and forms a Liquidation Team; b. orders the Liquidation Team to register and notify the Dissolution to the competent agency, and announce it in the State Gazette of the Republic of Indonesia;
c. orders the Liquidation Team to carry out Liquidation in accordance with the provisions of laws and regulations; and
d. orders the Liquidation Team to report the results of the implementation of Liquidation to the Financial Services Authority.
(2) The actions as referred to in paragraph (1) letter b are carried out no later than 20 (twenty) working days since the date of the Dissolution decision by the Financial Services Authority as referred to in paragraph (1) letter a. (3) The notification and announcement as referred to in paragraph (1) letter b contain:
a. Dissolution and its legal basis; b. the name and address of the Liquidation Team;
c. the procedure for submitting claims; and
d. the period for submitting claims.
(4) The period for submitting claims as referred to in paragraph (3) letter d is no later than 60 (sixty) working days calculated from the date of announcement as referred to in paragraph (1). (5) All costs arising as referred to in paragraph (1) become the burden of the Company's assets in Liquidation and are paid out first from every realization result.

Article 107
A Company is called a Company in Liquidation and is required to include the word "in Liquidation" abbreviated as "(DL)" behind the Company's name since the General Meeting of Shareholders decision as referred to in Article 104 paragraph (1) or the Financial Services Authority decision as referred to in Article 106 paragraph (1).

Paragraph 2
Liquidation

Article 108
(1) Since the formation of the Liquidation Team as referred to in Article 104 and Article 106:
a. the responsibility and management of the Company in Liquidation is carried out by the Liquidation Team; b. the Board of Directors, Board of Commissioners, and DPS:

no longer have authority as Board of Directors, Board of Commissioners, and DPS and become inactive;
are not permitted to resign before Liquidation is completed, except with the approval of the Financial Services Authority; and
are not entitled to receive salaries and other income as Board of Directors, Board of Commissioners, and DPS of the Company in Liquidation.
(2) Shareholders or those equivalent to shareholders in a legal entity in the form of a cooperative, the Board of Directors, Board of Commissioners, DPS, and employees of the Company in Liquidation are required to provide data, information, and documents required by the Liquidation Team. (3) Shareholders or those equivalent to shareholders in a legal entity in the form of a cooperative, the Board of Directors, Board of Commissioners, DPS, and employees of the Company in Liquidation are prohibited from hindering the Liquidation process.

Article 109
The Liquidation Team has the following duties:
a. settling matters related to Dissolution; b. settling matters related to Company employees;
c. conducting asset and obligation settlement of the Company;
d. submitting periodic reports and incidental reports if necessary to the Financial Services Authority; e. providing accountability for the implementation of Liquidation to:

the General Meeting of Shareholders, for Liquidation Teams formed by the General Meeting of Shareholders; or
the Financial Services Authority, for Liquidation Teams formed by the Financial Services Authority; and
f. carrying out other tasks deemed necessary to carry out the Liquidation process.

Article 110
In carrying out duties as referred to in Article 109, the Liquidation Team is authorized to:
a. represent the Company in Liquidation related to the settlement of rights and obligations of the Company both inside and outside the court; b. conduct negotiations and other actions in the sale of assets and debt collection from Customers;
c. conduct summonses, negotiations, and payment of obligations to Customers;
d. employ supporting personnel for the Liquidation Team, both from within and outside the Company in Liquidation; e. appoint other parties to assist in the implementation of Liquidation; f. request the court to cancel all legal acts of Participants that are suspected of harming Participants and are done in bad faith; and g. take other actions necessary in the implementation of Liquidation.

Article 111
(1) The implementation of Liquidation by the Liquidation Team must be completed within a period no later than 2 (two) years calculated from the date of formation of the Liquidation Team. (2) In the event that the implementation of Liquidation cannot be completed within the period as referred to in paragraph (1) then:
a. the General Meeting of Shareholders; or b. the Financial Services Authority, is authorized to extend the implementation period of Liquidation at most 2 (two) times each no later than 1 (one) year. (3) The extension of the implementation period of Liquidation as referred to in paragraph (2) is submitted by the Liquidation Team to obtain prior approval from the Financial Services Authority. (4) To obtain approval for the extension of the implementation period of Liquidation as referred to in paragraph (2), the Liquidation Team must submit a request for approval to the Financial Services Authority by attaching the document requirements for approval of the extension of the implementation period of Liquidation contained in the Appendix in Table 36 which is an integral part of this Financial Services Authority Regulation. (5) The request for extension of the implementation period of Liquidation as referred to in paragraph (4) is submitted no later than 4 (four) months before the end of the implementation period of Liquidation as referred to in paragraph (1) or the end of the first extension period. (6) The Financial Services Authority grants approval or rejection of the extension of the implementation period of Liquidation as referred to in paragraph (4) no later than 20 (twenty) working days since the business license request was received completely. (7) In the event of missing documents as referred to in paragraph (4), the Financial Services Authority submits a request for document completeness to the Company. (8) The Company must submit document completeness no later than 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (9) If within a period of 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (7), the Financial Services Authority has not received the requested document completeness, the Company is deemed to have canceled the request. (10) If the request for extension of the implementation period of Liquidation is approved, the Financial Services Authority issues a letter of approval to the respective Company. (11) If the request for extension of the implementation period of Liquidation is rejected, the Financial Services Authority submits a written notification accompanied by reasons for rejection. (12) If the implementation of Liquidation cannot be completed within the period as referred to in paragraph (2) and/or the request for extension of the implementation period of Liquidation is rejected as referred to in paragraph (11), the Financial Services Authority may:
a. wait until there is a final court decision, in the event that the implementation of Liquidation is not completed until the period as referred to in paragraph (2) and/or the request for extension of the implementation period of Liquidation is rejected as referred to in paragraph (11), due to lawsuits or disputes over the Company's problematic assets in Liquidation; or b. determine other settlement steps in accordance with the provisions of laws and regulations and the authority of the Financial Services Authority in settling Liquidation.

Article 112
(1) Members of the Liquidation Team for each Company in Liquidation are at least 2 (two) people and at most 5 (five) people.
(2) One of the members of the Liquidation Team is designated as the Chairman of the Liquidation Team.
(3) The determination of the number of members of the Liquidation Team is done by considering the effectiveness and efficiency of the implementation of Liquidation.
(4) If necessary, one of the members who is a shareholder or equivalent to a shareholder in a legal entity in the form of a cooperative, a Director, or a Commissioner may be appointed as a member of the Liquidation Team by considering understanding of the problems occurring in the Company, being cooperative, and having no conflict of interest that can harm the Company.

Article 113
(1) The appointment of the Liquidation Team is done by considering the integrity, competence, and financial reputation of the candidate members of the Liquidation Team.
(2) The membership of the Liquidation Team consists of at least:
a. 1 (one) person who has knowledge and experience of at least 5 (five) years in the field of pawnbroking; and b. 1 (one) person who has knowledge and experience of at least 5 (five) years in the field of law, audit, finance, and/or accounting. (3) Members of the Liquidation Team, supporting personnel of the Liquidation Team, and other parties appointed must not have marital relations, in-law family relations, or blood family relations upwards, downwards, and sideways up to the first degree with members of the Liquidation Team.

Article 114
(1) In the event that the Liquidation Team is formed by the General Meeting of Shareholders, the Financial Services Authority may order the General Meeting of Shareholders to dismiss and/or appoint replacements for members of the Liquidation Team who resign before the end of the Liquidation Team's assignment period with the consideration if the member of the Liquidation Team:
a. does not carry out duties well; b. violates the provisions of laws and regulations;
c. resigns;
d. is permanently unable to perform duties; or e. dies.

(2) In the event that the Financial Services Authority orders the General Meeting of Shareholders as referred to in paragraph (1) and the General Meeting of Shareholders does not dismiss and/or appoint replacements for the members of the Liquidation Team, the Financial Services Authority may dismiss and/or appoint replacements for the members of the Liquidation Team who have left.

(3) In the event that the members of the Liquidation Team are formed by the Financial Services Authority, the Financial Services Authority may dismiss members of the Liquidation Team before the end of the assignment period based on considerations as referred to in paragraph (1).

(4) The Financial Services Authority may appoint replacements for members of the Liquidation Team who have been dismissed as referred to in paragraph (3) for the remainder of their term.

Article 115

(1) Members of the Liquidation Team are given remuneration determined by:

a. the General Meeting of Shareholders for a Liquidation Team formed by the General Meeting of Shareholders; or

b. the Financial Services Authority for a Liquidation Team formed by the Financial Services Authority.

(2) Remuneration as referred to in paragraph (1) consists of:

a. honorarium; and

b. other income/facilities.

(3) The amount of remuneration for the Liquidation Team as referred to in paragraph (1) is determined by considering the factors:

a. the amount of assets and liabilities;

b. the condition and level of difficulty in liquidating assets and/or collecting receivables and settling the Company's liabilities;

c. the Company's office network in Liquidation; and/or

d. the qualifications of the members of the Liquidation Team.

(4) Other income/facilities as referred to in paragraph (2) letter b only include holiday allowances, reasonable incentives, and participation in national social security programs in accordance with applicable legislation.

(5) Remuneration for the Liquidation Team is a component of Liquidation costs that becomes an expense for the Company in Liquidation.

(6) Provisions regarding the provision of reasonable incentives as referred to in paragraph (4) are determined by the Financial Services Authority.

Article 116

(1) The Liquidation Team prepares a work plan and budget for the implementation of Liquidation with reference to the work plan and budget guidelines.

(2) The Liquidation Team prepares a work plan and budget for the implementation of Liquidation which at least contains:

a. types of activities to be carried out;

b. schedule for the completion of each activity;

c. plan and method for asset liquidation;

d. plan and method for collecting receivables;

e. plan and method for paying liabilities to Customers;

f. the number of support personnel required for the Liquidation Team; and

g. Liquidation costs.

(3) The work plan and budget as referred to in paragraph (1) are prepared for the period of the Liquidation Team's assignment term, detailed monthly.

(4) In the event there are improvements to the work plan and budget for the current year, the Liquidation Team must submit the improvements to the work plan and budget for the current year to the Financial Services Authority to obtain approval.

(5) Improvements to the work plan and budget as referred to in paragraph (4) are approved by the Financial Services Authority no later than 20 (twenty) working days after the Financial Services Authority receives the said improvements to the work plan and budget.

(6) In the event the Financial Services Authority has not or does not give approval for the improvements to the work plan and budget as referred to in paragraph (4), the Liquidation Team continues to use the last work plan and budget that has been approved by the Financial Services Authority.

(7) In the event the Financial Services Authority extends the implementation period of Liquidation and/or the term of the Liquidation Team, the Liquidation Team submits the work plan and budget for the extension period to the Financial Services Authority.

(8) Further provisions regarding the work plan and budget guidelines as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 117

(1) The work plan and budget as referred to in Article 116 are submitted to the Financial Services Authority no later than 30 (thirty) working days since the Liquidation Team was formed or since the start of the extension of the Liquidation Team's term.

(2) The Financial Services Authority may request improvements to the work plan and budget no later than 10 (ten) working days since the receipt of the work plan and budget.

(3) In the event the Financial Services Authority requests improvements to the work plan and budget, the Liquidation Team submits improvements to the work plan and budget in accordance with the request of the Financial Services Authority no later than 10 (ten) working days since the receipt of the improvement request letter from the Financial Services Authority.

(4) The Financial Services Authority gives approval for the work plan and budget no later than 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 118

(1) In carrying out tasks to resolve matters related to the Company's employees as referred to in Article 109 letter b, the Liquidation Team calculates owed salaries and severance pay for employees which are the Company's obligations to employees who have had their employment relationship terminated.

(2) Payment of owed salaries as referred to in paragraph (1) is carried out by taking into account the employees' liabilities that have fallen due.

(3) Payment of severance pay as referred to in paragraph (1) is carried out by taking into account all employee liabilities.

(4) The Liquidation Team may postpone the payment of severance pay to members of the Board of Directors and Company employees who are indicated to have committed criminal acts in the field of pawnshops and/or other criminal acts that can harm the Company.

(5) The Liquidation Team is required to terminate the employment of employees no later than 3 (three) months since the formation of the Liquidation Team.

(6) The Liquidation Team is required to make calculations of other employee rights arising as a result of the termination of employment as regulated in applicable labor legislation to be recorded as the Company's liabilities in Liquidation in the group of liabilities to other Customers.

(7) In the event the Liquidation Team has not yet been formed and the payment of employee salaries has fallen due, with the approval of the Financial Services Authority, the Board of Directors may make such salary payments to the extent that funds for such salary payments are available.

Article 119

In settling the assets and liabilities of the Company as referred to in Article 109 letter c, the Liquidation Team carries out the following actions:

a. appointing a public accountant registered with the Financial Services Authority to audit the Closing Balance Sheet;

b. conducting an inventory of assets and liabilities;

c. preparing the Interim Liquidation Balance Sheet;

d. carrying out asset liquidation;

e. carrying out the collection of receivables;

f. carrying out the payment of liabilities to creditors; and

g. depositing the portion not taken by creditors with the court.

Article 120

(1) After receiving the Closing Balance Sheet from the Financial Services Authority, the Liquidation Team appoints a public accountant registered with the Financial Services Authority to audit the Closing Balance Sheet.

(2) The implementation of the audit of the Closing Balance Sheet as referred to in paragraph (1) is carried out with reference to the terms of reference prepared by the Liquidation Team.

(3) The terms of reference as referred to in paragraph (2) at least contains the objectives and scope of the audit.

(4) The appointment of the public accountant as referred to in paragraph (1) is no later than 30 (thirty) working days since the Liquidation Team received the Closing Balance Sheet.

(5) The Liquidation Team submits the Closing Balance Sheet that has been audited by the public accountant as referred to in paragraph (1) to the Financial Services Authority no later than 90 (ninety) working days since the date of appointment of the public accountant.

Article 121

(1) The Liquidation Team conducts an inventory of assets and liabilities as of the date of the revocation of the Company's business license.

(2) Assets are grouped into non-performing assets and performing assets.

(3) Assets are determined to be in the performing group if they have legal obstacles in their liquidation caused by at least:

a. incomplete documents;

b. complete documents but the physical location of the assets is unknown;

c. imperfect encumbrance;

d. assets and/or collateral are not marketable; and/or

e. becoming the object of disputes outside or inside the court.

(4) The results of the inventory of assets and liabilities as referred to in paragraph (1) are used as the basis in the preparation and are an attachment to the Interim Liquidation Balance Sheet.

Article 122

(1) The Liquidation Team prepares the Interim Liquidation Balance Sheet with reference to the guidelines for preparing the Interim Liquidation Balance Sheet.

(2) The Liquidation Team submits the Interim Liquidation Balance Sheet to the Financial Services Authority no later than 60 (sixty) working days after the Liquidation Team receives the audited Closing Balance Sheet.

(3) The Financial Services Authority may approve or request improvements to the Interim Liquidation Balance Sheet if it is prepared not in accordance with the guidelines as referred to in paragraph (1) no later than 20 (twenty) working days since the Interim Liquidation Balance Sheet is received by the Financial Services Authority.

(4) The Liquidation Team is required to fulfill the request of the Financial Services Authority as referred to in paragraph (3) no later than 20 (twenty) working days since the date of the request for improvement of the Interim Liquidation Balance Sheet by the Financial Services Authority.

(5) The Liquidation Team is required to announce the Interim Liquidation Balance Sheet that has been approved by the Financial Services Authority in 2 (two) newspapers no later than 7 (seven) working days since the said Interim Liquidation Balance Sheet is approved by the Financial Services Authority.

(6) Further provisions regarding the guidelines for preparing the Interim Liquidation Balance Sheet as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 123

(1) The liquidation of performing assets as referred to in Article 121 paragraph (2) is carried out after the Interim Liquidation Balance Sheet is approved by the Financial Services Authority.

(2) In the event the Interim Liquidation Balance Sheet has not been approved by the Financial Services Authority, the liquidation of performing assets as referred to in paragraph (1) may be carried out after obtaining approval from the Financial Services Authority.

(3) The liquidation of performing assets as referred to in paragraph (1) and paragraph (2) must use fair market prices.

(4) The liquidation of assets and/or collection of receivables is carried out by the Liquidation Team in accordance with the plan and method contained in the work plan and budget as referred to in Article 116 paragraph (2) letters c and d.

Article 124

All costs of implementing Liquidation listed in the Liquidation cost list become the burden of the assets of the Company in Liquidation and are deducted first from each result of liquidation.

Article 125

(1) The Financial Services Authority conducts supervision over the implementation of Liquidation.

(2) Supervision of the implementation of Liquidation as referred to in paragraph (1) is carried out indirectly by analyzing reports submitted by the Liquidation Team to the Financial Services Authority.

(3) In the event necessary, the Financial Services Authority may conduct direct supervision on the Company in Liquidation.

(4) The Financial Services Authority may appoint a public accountant registered with the Financial Services Authority or other parties to and on behalf of the Financial Services Authority to conduct direct supervision as referred to in paragraph (3).

Article 126

(1) The Liquidation Team is required to submit a report on the realization of the work plan and budget to the Financial Services Authority every month no later than the 10th (ten) of the following month.

(2) If the deadline for submitting the report on the realization of the work plan and budget as referred to in paragraph (1) falls on a holiday, the deadline for submitting the report is the next working day.

(3) The report on the realization of the work plan and budget as referred to in paragraph (1) at least contains:

a. progress of Liquidation activities;

b. obstacles to the failure to achieve targets;

c. cash flow report;

d. position of assets that have been liquidated and liabilities that have been settled;

e. details of budget realization; and

f. obstacles faced and follow-up plans.

Article 127

The implementation of Liquidation is completed in the event:

a. all liabilities of the Company in Liquidation have been paid;

b. there are no more assets that can be used to pay liabilities before the end of the implementation period of Liquidation; or

c. the end of the implementation period of Liquidation as referred to in Article 111.

Article 128

(1) In the event the implementation period of Liquidation as referred to in Article 111 paragraph (1) and paragraph (2) is about to end, no later than 3 (three) months before the estimated end of the liquidation implementation, the Liquidation Team is required to announce:

a. the date of the final payment to creditors; and

b. follow-up for creditors who do not take their rights within the period up to the final payment date.

(2) The final payment date as referred to in paragraph (1) is no later than 30 (thirty) working days since the date of the announcement.

(3) The announcement as referred to in paragraph (1) is carried out through a daily newspaper with national circulation and the electronic system used by the Company.

(4) In the event creditors have not taken their rights up to the deadline as referred to in paragraph (2), the funds belonging to such creditors are deposited with the court or estate administration in accordance with applicable legislation.

(5) The application for deposit of funds as referred to in paragraph (4) is carried out no later than 30 (thirty) working days since the payment period as referred to in paragraph (2).

(6) The Liquidation Team is stated to have carried out the payment of liabilities to the relevant creditors after the deposit of funds belonging to creditors who have not taken their rights as referred to in paragraph (4).

(7) If within a period of 30 (thirty) years, the funds belonging to creditors as referred to in paragraph (4) are not taken by the relevant creditors, such funds are handed over to the state treasury.

Article 129

(1) In the event the Liquidation Team is formed by the General Meeting of Shareholders as referred to in Article 105 paragraph (1), the Liquidation Team is required to submit the Final Liquidation Balance Sheet to the Financial Services Authority and the report on the Liquidation Team's task accountability to the General Meeting of Shareholders no later than 20 (twenty) working days after the implementation of Liquidation is completed.

(2) In the event the Liquidation Team is formed by the Financial Services Authority as referred to in Article 106 paragraph (1), the Liquidation Team is required to submit the Final Liquidation Balance Sheet and the report on the Liquidation Team's task accountability to the Financial Services Authority with a copy to the shareholders or equivalent to shareholders in a legal entity in the form of a cooperative no later than 20 (twenty) working days after the implementation of Liquidation is completed.

(3) The accountability report as referred to in paragraph (1) and paragraph (2) at least contains:

a. receipt of Liquidation results;

b. Liquidation costs;

c. payment of liabilities to creditors;

d. remaining cash or cash equivalent assets;

e. remaining performing assets; and

f. remaining unpaid liabilities.

(4) The Financial Services Authority appoints a public accountant to and on behalf of the Financial Services Authority to audit the Final Liquidation Balance Sheet as referred to in paragraph (1) and paragraph (2).

Article 130

In the event the Liquidation Team formed by the General Meeting of Shareholders as referred to in Article 105 paragraph (1) has submitted the Final Liquidation Balance Sheet and it has been approved by the Financial Services Authority and the accountability report has been received by the General Meeting of Shareholders, then the General Meeting of Shareholders:

a. requests the Liquidation Team to:

announce the end of Liquidation by placing it in the State Gazette of the Republic of Indonesia and in 2 (two) newspapers;
notify the competent agency regarding the loss of the Company's legal entity status; and
notify the competent agency, so that the Company's name is removed from the Company list; and

b. dissolve the Liquidation Team.

Article 131

(1) In the event the Liquidation Team formed by the Financial Services Authority as referred to in Article 106 paragraph (1) has submitted the Final Liquidation Balance Sheet and the accountability report to the Financial Services Authority, the Financial Services Authority decides to accept or not accept the Liquidation Team's accountability no later than 20 (twenty) working days since the Financial Services Authority receives the audit result report as referred to in Article 129 paragraph (4).

(2) In the event the Liquidation Team's accountability report has been received by the Financial Services Authority, the Financial Services Authority:

a. requests the Liquidation Team to:

announce the end of Liquidation by placing it in the State Gazette of the Republic of Indonesia and in 2 (two) newspapers;
notify the competent agency regarding the loss of the Company's legal entity status;
notify the competent agency, so that the Company's name is removed from the Company list; and
hand over all documents of the Company in Liquidation to the Financial Services Authority;

b. dissolve the Liquidation Team; and

c. dismiss the non-active Board of Directors, Board of Commissioners, and DPS.

(3) Actions as referred to in paragraph (2) letter a are carried out by the Liquidation Team no later than 30 (thirty) working days since the accountability is received by the Financial Services Authority.

(4) In the event the Financial Services Authority decides not to accept the Liquidation Team's accountability, the Financial Services Authority may:

a. report the Liquidation Team to the relevant authorities if the Liquidation Team is indicated to have committed:

fraud in carrying out the Liquidation process; or
criminal acts; or

b. take other steps in accordance with applicable legislation.

Article 132

(1) The legal entity status of the Company being liquidated ends since the date of the announcement of the end of Liquidation in the State Gazette of the Republic of Indonesia as referred to in Article 130 letter a number 1 and Article 131 paragraph (2) letter a number 1.

(2) The Financial Services Authority is authorized to determine mechanisms and requirements for Liquidation that are different from this Financial Services Authority Regulation due to the revocation of the business license because:

a. carrying out Merger, Consolidation, and Separation;

b. submitting a request for cessation of business activities on behalf of the Company; or

c. not carrying out business activities for the period as referred to in Article 97 paragraph (2) letter d.

Part Six

Administrative Sanctions

Article 133

(1) Companies that violate provisions as referred to in Article 97 paragraph (3), Article 99 paragraph (1), Article 100, Article 101 paragraph (1), Article 102 paragraph (2), Article 103 paragraph (1), paragraph (7), Article 104 paragraph (1), paragraph (10), and/or Article 107 are subject to administrative sanctions in the form of administrative fines.

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

(3) Administrative fine sanctions as referred to in paragraph (1) letter d are imposed at most IDR 50,000,000.00 (fifty million rupiah).

(4) In the event the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction.

(5) In the event there is a violation of provisions as referred to in paragraph (1) and the violation has been corrected, the Financial Services Authority provides written warning sanctions that end automatically.

(6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:

a. conduct a re-evaluation of the main parties causing the Company to violate the provisions as referred to in paragraph (1); and/or

b. record the track record of parties causing the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

Article 134

(1) Parties that violate provisions as referred to in Article 104 paragraph (2), Article 105 paragraph (1), Article 108 paragraph (2), paragraph (3), Article 111 paragraph (1), Article 118 paragraph (5), paragraph (6), Article 122 paragraph (4), paragraph (5), Article 126 paragraph (1), Article 128 paragraph (1), and/or Article 129 paragraph (1) and paragraph (2) are subject to administrative sanctions in the form of:

a. written warnings;

b. prohibition from becoming PSP, Directors, Board of Commissioners, and/or DPS; and/or

c. administrative fines.

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

(3) Administrative fine sanctions as referred to in paragraph (1) letter c are imposed at most IDR 50,000,000.00 (fifty million rupiah).

(4) In the event the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes administrative sanctions in the form of written warnings.

(6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:

a. conduct a re-evaluation of the main parties causing the Company to violate the provisions as referred to in paragraph (1); and/or

b. record the track record of parties causing the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

Article 135

In the event there is a violation of provisions as referred to in Article 103 paragraph (1), paragraph (7), and/or Article 104 paragraph (1), the Financial Services Authority is authorized to:

a. conduct a re-evaluation of the Main Parties;

b. record the track record of parties causing the Company to commit violations in the Financial Services Authority's electronic system;

c. provide written instructions and/or written orders to relevant parties to form a Liquidation Team (at least one person); and/or

d. other actions, including for the protection of consumers and the general public.

CHAPTER XII
BUSINESS CONDUCT
First Section
Business Activities
Article 136
(1) The main business activities of the Company are conducted through the provision of Loans with Collateral based on Pledge law.
(2) In addition to conducting business activities as referred to in paragraph (1), the Company may conduct other business activities as follows:
a. provision of Loans with Collateral based on Fiducia; b. provision of valuable goods deposit services;
c. provision of appraisal services;
d. activities that generate income based on commissions as long as they do not conflict with financial services regulations; and/or e. other activities after obtaining approval from the Financial Services Authority. (3) Business activities as referred to in paragraph (1) and paragraph (2) may be conducted on a conventional basis or based on Sharia Principles. (4) The Company is prohibited from conducting business activities as referred to in paragraph (1) and paragraph (2) outside its business jurisdiction. (5) Further provisions regarding activities that generate income based on commissions as referred to in paragraph (2) letter d and other business activities with the approval of the Financial Services Authority as referred to in paragraph (2) letter e shall be determined by the Financial Services Authority.

Article 137
The Company is required to have a ratio of Loans with Collateral based on Pledge law as referred to in Article 136 paragraph (1) of at least 51% (fifty-one percent) against total Loans.

Article 138
The Company providing Loans with Collateral based on Pledge law as referred to in Article 136 paragraph (1) is prohibited from:
a. using the Collateral; b. storing the Collateral at the Customer's premises;
c. owning the Collateral; and/or
d. re-pledging the Collateral to third parties.

Article 139
(1) The Company intending to conduct activities that generate income based on commissions as referred to in Article 136 paragraph (2) letter d is required to report to the Financial Services Authority. (2) The reporting of activities that generate income based on commissions as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the reporting requirement documents for activities that generate income based on commissions listed in the Appendix in table 37 which is an integral part of this Financial Services Authority Regulation. (3) In the event that the Financial Services Authority has received the report as referred to in paragraph (1) completely, the Financial Services Authority issues a letter recording the activities that generate income based on commissions in the Financial Services Authority administration within at most 20 (twenty) working days since the report was received. (4) If within the time period as referred to in paragraph (2), the Financial Services Authority does not issue the recording letter, the Company may conduct the activities as referred to in paragraph (1).

Article 140
(1) The Company intending to conduct other business activities as referred to in Article 136 paragraph (2) letter e is required to submit an application for approval to the Financial Services Authority. (2) The Company intending to conduct other business activities as referred to in paragraph (1) must meet the following requirements:
a. the plan to conduct other business activities has been included in the Company's business plan; b. has a Health Level with a minimum Composite Rating of 2;
c. adequate human resources to conduct other business activities;
d. adequate infrastructure to conduct other business activities; e. has standard operating procedures for other business activities; f. financial condition is not loss-making in the last 3 (three) periodic reports; and g. is not subject to sanctions of suspension of part or all of business activities or restriction of certain business activities. (3) To obtain approval for other business activities as referred to in paragraph (1), the Board of Directors must submit an application for approval to the Financial Services Authority by attaching the approval requirement documents for other business activities listed in the Appendix in table 38 which is an integral part of this Financial Services Authority Regulation. (4) The Financial Services Authority provides approval, requests for document completeness, or rejection of the application as referred to in paragraph (2) within at most 20 (twenty) working days after the application is received. (5) In providing approval, requests for document completeness, or rejection as referred to in paragraph (3), the Financial Services Authority conducts:
a. analysis of document completeness as referred to in paragraph (2); b. analysis of compliance with provisions in this Financial Services Authority Regulation; and
c. analysis of the feasibility of the proposed other business activities.
(6) In the event of missing documents as referred to in paragraph (3), the Financial Services Authority issues a request for document completeness to the Company.
(7) The Company must submit document completeness within at most 20 (twenty) working days since the date of the document completeness request letter from the Financial Services Authority. (8) If within the period of 20 (twenty) working days since the date of the document completeness request letter as referred to in paragraph (6), the Financial Services Authority has not received the requested document completeness, the Company is deemed to have cancelled the application. (9) In the event that the application for approval to conduct other business activities as referred to in paragraph (3) is approved, the Financial Services Authority provides approval to conduct other business activities to the Company. (10) In the event that the Financial Services Authority rejects the application for approval to conduct other business activities as referred to in paragraph (3), the rejection must be done in writing and accompanied by the reasons for rejection.

Second Section
Business Activities Based on Sharia Principles
Article 141
The implementation of business activities based on Sharia Principles as referred to in Article 136 paragraph (3) is required to use contracts with the following provisions:
a. fulfill the principles of justice ('adl), balance (tawazun), benefit (maslahah), and universalism (alamiyah); b. do not contain gharar, maysir, riba, zhulm, risywah, and haram objects; and
c. do not conflict with Islamic law provisions based on fatwa and/or Sharia compliance statements from institutions having authority in setting fatwas in the Sharia field.

Article 142
(1) Business activities based on Sharia Principles as referred to in Article 141 are implemented using contracts:
a. rahn; b. rahn tasjily;
c. ijarah; and/or
d. other contracts with the approval of the Financial Services Authority.
(2) Business activities based on Sharia Principles may be conducted using:
a. single contracts; and/or b. combined contracts according to the Sharia opinion from the Sharia Supervisory Board (DPS) which is based on fatwas from institutions having authority in setting fatwas in the Sharia field. (3) To use other contracts as referred to in paragraph (1) letter d, the Board of Directors must submit an application for approval to the Financial Services Authority. (4) The application as referred to in paragraph (3) is submitted by attaching the approval requirement documents for other contracts in the form of fatwa and/or Sharia compliance statements issued by institutions having authority in setting fatwas in the Sharia field listed in the Appendix in table 39 which is an integral part of this Financial Services Authority Regulation. (5) In the event that fatwa and/or Sharia compliance statements as referred to in paragraph (4) have not been issued, the use of other contracts must attach requirement documents in the form of opinions from the DPS.

Third Section
Collateral and Appraisal
Article 143
(1) The Company is required to determine Collateral that can be accepted.
(2) The determination of Collateral that can be accepted as collateral as referred to in paragraph (1) is required to be done in accordance with Collateral criteria.
(3) Provisions regarding Collateral criteria as referred to in paragraph (2) are determined by the Financial Services Authority.

Article 144
(1) The Company is required to have a Collateral storage place that meets safety and security requirements.
(2) The Company is required to have written guidelines in maintaining the safety and security of Collateral.
(3) The Company is required to insure the Collateral for risk mitigation.
(4) Further provisions regarding the requirements for Collateral storage places based on Pledge law as referred to in paragraph (1) and deposited goods are determined by the Financial Services Authority.

Article 145
(1) The Company is required to have written guidelines for the appraisal of Collateral.
(2) The appraisal of Collateral as referred to in paragraph (1) is required to be conducted by an Appraiser.

Article 146
(1) The Company is required to provide appraisal values for each Collateral to the Customer.
(2) To meet the quality of Collateral appraisal, the Company is required to:
a. provide appraisal tools; and b. determine a fair market price list for Collateral.

Article 147
(1) The Company is required to meet the minimum value ratio between Loans and the appraisal value of Collateral in providing Loans to Customers.
(2) The minimum value ratio as referred to in paragraph (1) does not apply if the Customer states in writing that they desire a lower Loan.
(3) Further provisions regarding the minimum value ratio between Loans and the appraisal value of Collateral as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 148
(1) In the event that Loans with Collateral based on Pledge law are not paid off until the due date, the Company may conduct an Auction of the Collateral.
(2) Before the implementation of the Auction as referred to in paragraph (1), the Collateral may be sold by:
a. the Customer selling the Collateral themselves; or b. the Customer granting power of attorney to the Company to sell the Collateral, based on an agreement between the Company and the Customer. (3) In the event that the Company agrees with the Customer to conduct the sales method as referred to in paragraph (2), the sale is implemented within at most 20 (twenty) working days after the due date. (4) The sale of Collateral as referred to in paragraph (2) letter b is conducted if the sale value can meet the Customer's obligations to the Company. (5) Collateral sold before the Auction date as referred to in paragraph (3) is prohibited from being purchased directly or indirectly by the Company, Board of Directors members, Board of Commissioners members, DPS, employees, and their affiliates. (6) The Company is required to have written guidelines to conduct the sale of Collateral as referred to in paragraph (2).

Article 149
(1) In the event that the Customer has paid off the Loan plus Loan interest or service remuneration/return, the Company is required to return the Collateral to the Customer in the same physical condition as when the Collateral was handed over. (2) In the event that the Collateral as referred to in paragraph (1) is lost or damaged, the Company is required to replace it with:
a. money or goods with a value equal to or equivalent to the value of the Collateral at the time the Collateral was lost or damaged, for Collateral in the form of jewelry; or b. money or goods with a value equal to or equivalent to the value of the Collateral at the time the Collateral was pledged, for Collateral other than jewelry.

Article 150
The terms and procedures for the sale of Collateral based on Pledge law by Auction are implemented in accordance with regulations concerning auctions.

Article 151
(1) The Company is required to notify and return the Excess Money from the proceeds of the sale of Collateral by Auction as referred to in Article 148 paragraph (1) or based on the power of attorney to sell as referred to in Article 148 paragraph (2) letter b to the Customer. (2) The Company is required to record the Excess Money from the proceeds of the sale as referred to in paragraph (1) separately. (3) Further provisions regarding the procedures for the return of Excess Money as referred to in paragraph (1) are determined by the Financial Services Authority.

Fourth Section
Loan Risk Mitigation
Article 152
(1) The Company having business activities as referred to in Article 136 paragraph (1) and paragraph (2) is required to conduct loan risk mitigation.
(2) Loan risk mitigation as referred to in paragraph (1) is at least in the form of:
a. conducting analysis of loan risk submitted by the Customer; b. verifying Customer identity and document authenticity; and
c. registering fiducia collateral over Collateral, if the Company imposes fiducia collateral over Collateral.
(3) For Companies providing Loans with Collateral based on fiducia, the Company may conduct additional risk mitigation by:
a. transferring loan risk through credit insurance or credit guarantee mechanisms in accordance with regulations; and b. transferring risk over the collateralized object through insurance mechanisms.

Fifth Section
Agreements
Article 153
(1) All agreements between the Company and the Customer are required to be put into written agreements.
(2) Agreements as referred to in paragraph (1) may be in the form of:
a. Pledge Evidence Letter; b. Loan agreement with Collateral based on fiducia; and
c. deposit agreement.
(3) Agreements as referred to in paragraph (2) letter a and letter b are required to contain at least:
a. identity of the parties; b. agreement number and date;
c. type of business activity;
d. object pledged; e. appraisal value of the pledged object; f. Loan amount; g. Loan term; h. Loan interest rate or service remuneration/return, and administrative fees;
i. late payment penalties;
j. clear imposition of fiducia Collateral, if the Loan is provided with fiducia collateral; k. mechanism in the event of disputes and choice of dispute resolution venue;
l. provisions for giving warnings in the event of Customer breach of contract;
m. provisions for execution or sale of Collateral in the event of Customer breach of contract; n. execution or sale costs of Collateral; o. provisions regarding the Loan repayment mechanism and return of Excess Money from the proceeds of Collateral sale or insurance claims; p. term of risk mitigation agreement if the Company conducts risk mitigation by the method as referred to in Article 152 paragraph (3), if the Loan is provided with fiducia collateral; q. provisions regarding the rights and obligations of the parties; and r. provisions regarding force majeure.

Article 154
Agreements as referred to in Article 153 paragraph (1) are required to meet agreement drafting provisions in accordance with regulations concerning consumer and community protection.

Article 155
(1) The Company is required to hand over the agreement as referred to in Article 153 paragraph (2) to the Customer.
(2) The Company is required to administer, store, and maintain copies of the agreements as referred to in paragraph (1) for each transaction.
(3) Administration, storage, and maintenance as referred to in paragraph (2) are conducted for a minimum period of 5 (five) years.

Article 156
(1) Agreements as referred to in Article 153 paragraph (1) may be put into electronic documents.
(2) In the event that agreements are put into electronic documents as referred to in paragraph (1), the Company is required to use Electronic Signatures that have been secured with electronic certificates. (3) The use of Electronic Signatures secured with electronic certificates is required to be put into guidelines for the use of Electronic Signatures and implemented in accordance with regulations concerning electronic signatures.

Sixth Section
Cooperation in Loan Provision with Financial Service Institutions
Article 157
(1) In conducting business activities as referred to in Article 136, the Company may cooperate with other parties through:
a. Referral Loans; or b. Joint Loans.
(2) Other parties as referred to in paragraph (1) include:
a. Companies; b. banks;
c. financing companies;
d. microfinance institutions; e. technology-based co-financing service providers; f. venture capital companies; and/or g. other institutions that are permitted by regulations to conduct Loan cooperation through Referral Loan and Joint Loan schemes. (3) Cooperation of the Company with other parties through Referral Loans or Joint Loans as referred to in paragraph (1) is required to be conducted in accordance with regulations governing each party. (4) The Company is prohibited from cooperating with other parties through Referral Loan schemes with collateral and Joint Loans with collateral. (5) In conducting cooperation as referred to in paragraph (3), the Company is required to cooperate with other parties as referred to in paragraph (2) that have the same conduct principles and have obtained business licenses or are registered with the Financial Services Authority. (6) The cooperation mechanism with other parties as referred to in paragraph (1) is required to be put into agreements between the parties. (7) Agreements between the parties as referred to in paragraph (6) are required to contain at least:
a. identity of the parties, including the determination of the party acting as the fund owner and fund manager or as the leader and member, if any; b. responsibilities and obligations of the parties in the Loan approval process;
c. proportion of Loans, income, costs, and/or risks between the parties;
d. payment methods, procedures for receiving, and transferring Loans, income, costs, and/or risks between the parties; and e. responsibilities and obligations of the parties in the risk mitigation process.

Article 158
(1) The Company is required to ensure that in implementing Referral Loans as referred to in Article 157 paragraph (1) letter a, the risks arising from these activities are borne by the fund owner. (2) In Referral Loans, the fund recipient only acts as a manager and obtains remuneration from the management of the funds. (3) The Company is required to ensure that Referral Loans as referred to in paragraph (1) meet the following requirements:
a. Pledge Evidence Letters or Loan agreements with Collateral based on fiducia state the names of the Company and the other party; and b. the issuance of Pledge Evidence Letters or Loan agreements with Collateral based on fiducia is conducted by the fund manager.

Article 159
(1) The Company is required to ensure that in implementing Joint Loans as referred to in Article 157 paragraph (1) letter b, the source of Loan funds comes from the Company and other parties as referred to in Article 157 paragraph (3). (2) Risks arising from Joint Loans as referred to in paragraph (1) become the burden of each party proportionally according to the amount of funds disbursed. (3) The Company is required to ensure that Joint Loans as referred to in paragraph (1) are implemented in accordance with the Company's business jurisdiction. (4) The Company is required to ensure that Joint Loans as referred to in paragraph (1) meet the following requirements:
a. Pledge Evidence Letters or Loan agreements with Collateral based on fiducia state:

the names of the Company and the other party; and
the proportion of Loans from the parties; and
b. the issuance of Pledge Evidence Letters or Loan agreements with Collateral based on fiducia is conducted by the Company.

Article 160
In conducting Loan cooperation through Referral Loans and/or Joint Loans, the Company is required to have adequate information technology systems to ensure the consistency of Customer data owned by the Company and other parties as referred to in Article 157 paragraph (3).

Seventh Section
Information Systems
Article 161
(1) In supporting the conduct of business activities and electronic reporting, the Company is required to have:
a. adequate information systems and information technology; and b. a website.
(2) Information systems and information technology as referred to in paragraph (1) letter a are adjusted to the complexity of the business and the size of the Company.

Article 162
(1) The Company may outsource the implementation, evaluation, and maintenance of information systems and information technology to a legal entity service provider of information technology. (2) The activity of outsourcing implementation, evaluation, and maintenance as referred to in paragraph (1) is implemented in accordance with Financial Services Authority Regulations regarding the application of risk management in the use of information technology by non-bank financial service institutions.

Eighth Section
Business Activities Utilizing Information Technology
Article 163
(1) The Company may conduct business activities by utilizing information technology.
(2) The implementation of business activities by utilizing information technology as referred to in paragraph (1) consists of:
a. marketing activities; b. Loan application applications; and/or
c. installment payment monitoring.
(3) The implementation of business activities by utilizing information technology as referred to in paragraph (2) is prohibited from being conducted outside the business jurisdiction.

Article 164
Companies conducting business activities by utilizing information technology are required to have:
a. standard operating procedures related to business activities utilizing information technology; b. human resources with expertise and/or background in the field of information technology; and
c. risk mitigation and reliable and secure information technology systems.

Article 165
(1) The Company is required to report business activities utilizing information technology to the Financial Services Authority within at most 5 (five) working days since the date the information technology utilization business activity is first conducted. (2) The reporting of business activities utilizing information technology as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the reporting requirement documents for business activities utilizing information technology listed in the Appendix in table 40 which is an integral part of this Financial Services Authority Regulation.

Part Nine
Cooperation with Other Parties
Article 166
(1) The Company may conduct cooperation with financial service institutions and non-financial institutions.
(2) Cooperation as referred to in paragraph (1) must meet the following criteria:
a. conducted with parties that are registered or licensed by the Financial Services Authority, or equivalent in other competent authorities; b. stipulated in an agreement; and
c. included in the business plan.
(3) In the event the Company conducts cooperation:
a. that provides income based on commissions; b. marketing services for financial service products;
c. to facilitate risk mitigation; and/or
d. outsourcing,
The Company must report the aforementioned cooperation to the Financial Services Authority no later than 5 (five) working days from the date of the cooperation agreement.
(4) In the event the Company conducts marketing services for financial service products as referred to in paragraph (3) letter b, such cooperation is prohibited from being conducted other than with financial service institutions that are licensed and supervised by the Financial Services Authority. (5) In carrying out cooperation as referred to in paragraph (1), the Company must comply with applicable legislation. (6) The Company is fully responsible for all impacts arising from cooperation with other parties as referred to in paragraph (1). (7) The Company must conduct periodic evaluations of cooperation with other parties as referred to in paragraph (1).

Part Ten
Administrative Sanctions
Article 167
(1) Companies that violate the provisions as referred to in Article 136 paragraph (4), Article 137, Article 138, Article 139 paragraph (1), Article 140 paragraph (1), Article 141, Article 143 paragraph (1), paragraph (2), Article 144 paragraph (1), paragraph (2), paragraph (3), Article 145, Article 146, Article 147 paragraph (1), Article 148 paragraph (5), paragraph (6), Article 149, Article 151 paragraph (1), paragraph (2), Article 152 paragraph (1), Article 153 paragraph (1), paragraph (3), Article 154, Article 155 paragraph (1), paragraph (2), Article 156 paragraph (2), paragraph (3), Article 157 paragraph (3), paragraph (4), paragraph (5), paragraph (6), paragraph (7), Article 158 paragraph (1), paragraph (3), Article 159 paragraph (1), paragraph (3), paragraph (4), Article 160, Article 161 paragraph (1), Article 163 paragraph (3), Article 164, Article 165 paragraph (1), and/or Article 166 paragraph (2), paragraph (3), paragraph (4), paragraph (5), paragraph (6), paragraph (7) shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. revocation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most Rp50,000,000.00 (fifty million rupiah). (4) In the event the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event a violation of the provisions as referred to in paragraph (1) occurs and the violation has been rectified, the Financial Services Authority provides an administrative sanction in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the Health Level assessment results; b. re-evaluate the main party that caused the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties related to the Company that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER XIII
MAXIMUM LOAN GRANTING LIMITS
Article 168
(1) The Company must comply with the Maximum Loan Granting Limits (BMPP) provisions to all related parties at a maximum of 50% (fifty percent) of the Company's Equity.
(2) The basis for calculating Equity in calculating BMPP as referred to in paragraph (1) is the Equity in the Company's latest monthly report before the Loan is granted.
(3) If the Company obtains a business license for less than 1 (one) month, the basis for calculating Equity in calculating BMPP as referred to in paragraph (1) is the Equity in the financial report submitted at the time of the business license application. (4) Related parties as referred to in paragraph (1) include:
a. individuals or business entities that are controllers of the Company; b. business entities where the Company acts as a controller;
c. individuals or business entities that act as controllers of business entities as referred to in letter b;
d. business entities whose control is carried out by:

individuals and/or business entities as referred to in letter a; or
individuals and/or business entities as referred to in letter c;
e. Board of Commissioners or Board of Directors of the Company; f. parties having family relationships up to the second degree, both horizontal and vertical, from:
individuals who are controllers of the Company as referred to in letter a; and/or
Board of Commissioners or Board of Directors of the Company as referred to in letter e;
g. board of commissioners or directors of business entities as referred to in letters a through d; h. business entities whose board of commissioners or directors are:
Board of Commissioners or Board of Directors of the Company; or
board of commissioners or directors of business entities as referred to in letters a through d;
i. business entities that:
Board of Commissioners or Board of Directors of the Company as referred to in letter e act as controllers; or
board of commissioners or directors of parties as referred to in letters a through d act as controllers; and
j. business entities that have financial dependence with the Company and/or parties as referred to in letters a through i.
(5) The Company must have and account for a detailed list of related parties as referred to in paragraph (4).

Article 169
(1) The Company must comply with BMPP provisions to 1 (one) Customer who is not a related party as referred to in Article 168 paragraph (4) set at a maximum of 20% (twenty percent) of the Company's Equity. (2) The Company must comply with BMPP provisions to 1 (one) group of Customers who are not related parties as referred to in Article 168 paragraph (4) set at a maximum of 50% (fifty percent) of the Company's Equity. (3) The basis for calculating Equity in calculating BMPP as referred to in paragraph (1) and paragraph (2) is the Equity in the Company's latest monthly report before the Loan is granted. (4) If the Company obtains a business license for less than 1 (one) month, the basis for calculating Equity in calculating BMPP as referred to in paragraph (1) and paragraph (2) is the Equity in the financial report submitted at the time of the business license application. (5) Customers are classified as members of a Customer group as referred to in paragraph (2) in the event the Customer has a control relationship with other Customers either through ownership, management, and/or financial relationships, including:
a. the Customer is a controller of other Customers; b. 1 (one) same party is a controller of several Customers;
c. the Customer has financial dependence with other Customers;
d. the Customer issues guarantees to take over and/or pay off part or all of the obligations of other Customers in the event such other Customers fail to meet their obligations (default) to the Company; and/or e. the board of commissioners and/or directors of the Customer become board of commissioners and/or directors of other Customers.

Article 170
(1) Exceeding BMPP can be caused by:
a. decrease in Equity; b. exchange rate changes;
c. fair value changes;
d. business mergers and/or changes in management structure that cause changes in related parties and/or Customer groups; and/or e. changes in regulations.
(2) Exceeding BMPP as referred to in paragraph (1) is calculated based on the recorded value on the report date.
(3) The Company must make adjustments if there is an Exceeding of BMPP.

Article 171
(1) In the event the Company violates BMPP and/or exceeds BMPP, the Company must prepare an action plan for the resolution of BMPP violations and/or BMPP exceedances.
(2) The action plan as referred to in paragraph (1) must contain at least improvement steps to be implemented by the Company for the resolution of BMPP violations and/or BMPP exceedances and target completion times.

Article 172
(1) The Company must resolve BMPP violations and/or BMPP exceedances immediately with target completion times as referred to in Article 171 paragraph (2) set:
a. for BMPP violations, no later than within a period of 1 (one) month; b. for BMPP exceedances caused by matters as referred to in Article 170 paragraph (1) letters a through c, set no later than 9 (nine) months;
c. for BMPP exceedances caused by matters as referred to in Article 170 paragraph (1) letter d, set no later than 12 (twelve) months; and/or
d. for BMPP exceedances caused by matters as referred to in Article 170 paragraph (1) letter e, set no later than 18 (eighteen) months, since the deadline for submitting the action plan to the Financial Services Authority. (2) In the event the target completion time for the action plan as referred to in paragraph (1) is deemed unachievable, the Company, based on approval from the Financial Services Authority, may set a different target completion time for the action plan than the target completion time for the action plan as referred to in paragraph (1).

Article 173
The Company is prohibited from:
a. making commitments or agreements; or b. setting requirements that obligate the Company to provide Loans, which will result in BMPP Violations.

Article 174
(1) Companies that violate the provisions as referred to in Article 168 paragraph (1), paragraph (5), Article 169 paragraph (1), paragraph (2), Article 170 paragraph (3), Article 171, Article 172 paragraph (1), and/or Article 173 shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. revocation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most Rp50,000,000.00 (fifty million rupiah). (4) In the event the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event a violation of the provisions as referred to in paragraph (1) occurs and the violation has been rectified, the Financial Services Authority provides an administrative sanction in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the Health Level assessment results; b. re-evaluate the main party that caused the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties related to the Company that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER XIV
ASSESSMENT OF LOAN RECEIVABLE QUALITY
Part One
Assessment of Loan Receivable Quality Based on Pledge Law and Fiduciary Law
Article 175
(1) The Company must assess the quality of receivables for:
a. Loans with Collateral based on Pledge Law; and/or b. Loans with Collateral based on Fiduciary Law, that are granted.
(2) The assessment of loan receivable quality as referred to in paragraph (1) consists of:
a. good; b. special attention;
c. doubtful;
d. questionable; and e. non-performing.
(3) The assessment of loan receivable quality as referred to in paragraph (2) is determined based on the accuracy of principal and/or loan interest or service yield/return payments. (4) Loan receivable quality as referred to in paragraph (2) is categorized:
a. good if there is no delay in principal loan and/or interest or service yield/return payments up to 10 (ten) calendar days; b. special attention if there is a delay in principal loan and/or interest or service yield/return payments, which has exceeded 10 (ten) calendar days up to 90 (ninety) calendar days;
c. doubtful if there is a delay in principal loan and/or interest or service yield/return payments, which has exceeded 90 (ninety) calendar days up to 120 (one hundred twenty) calendar days;
d. questionable if there is a delay in principal loan and/or interest or service yield/return payments, which has exceeded 120 (one hundred twenty) calendar days up to 180 (one hundred eighty) calendar days; and e. non-performing if there is a delay in principal loan and/or interest or service yield/return payments, which has exceeded 180 (one hundred eighty) calendar days. (5) In the event there is a difference between the loan receivable quality assessment by the Company and the Financial Services Authority, the loan receivable quality that applies is that determined by the Financial Services Authority. (6) The Company must adjust the loan receivable quality with the loan receivable quality assessment determined by the Financial Services Authority as referred to in paragraph (5) in the monthly report submitted to the Financial Services Authority.

Article 176
(1) The Company must determine the same loan receivable quality as referred to in Article 175 paragraph (1) for 1 (one) Customer with more than 1 (one) Loan.
(2) In determining the same loan receivable quality for 1 (one) Customer with more than 1 (one) Loan as referred to in paragraph (1), the Company must use the lowest loan receivable quality. (3) The Company may determine different loan receivable qualities for more than 1 (one) Loan owned by 1 (one) Customer as referred to in paragraph (1), in the event:
a. the loan receivable with the lowest quality has been written off; and/or b. the loan receivable balance value is up to Rp5,000,000,000.00 (five billion rupiah).

Article 177
(1) The Company must assess, monitor, and take necessary steps to ensure that loan receivable quality remains good.
(2) Loan receivables categorized as problematic loan receivables consist of loan receivables with doubtful, questionable, and non-performing quality.
(3) The Company must maintain the ratio of net problematic loan receivable balances as referred to in paragraph (2) after being reduced by loan loss provisions formed by the Company at a maximum of 5% (five percent). (4) In the event the Company does not fulfill the provisions as referred to in paragraph (3), the Financial Services Authority provides a notification letter to the Company to take steps:
a. improve loan granting policies and implementation; b. improve loan quality assessment policies and implementation;
c. increase professionalism and integrity of employees carrying out loan granting;
d. improve the organizational structure carrying out loan granting and loan administration functions; e. improve policies regarding duties, authorities, and responsibilities of the Board of Directors, Board of Commissioners, and employees carrying out loan granting; and/or f. other actions determined by the Financial Services Authority.

Part Two
Loan Receivable Restructuring, Loan Loss Provisions, and Impairment Loss Provisions
Article 178
(1) The Company may conduct restructuring of loan receivables.
(2) Restructuring as referred to in paragraph (1) is carried out with changes to the Pledge Certificate or Loan Agreement with Collateral based on Fiduciary Law.
(3) The implementation of loan receivable restructuring policies as referred to in paragraph (1) is carried out while still paying attention to the implementation of prudent principles, risk management, and good corporate governance. (4) Changes to the Pledge Certificate or Loan Agreement with Collateral based on Fiduciary Law as referred to in paragraph (2) can be carried out if the following criteria are met:
a. the Customer still has income; b. the Customer's business activities still have prospects; and/or
c. the estimated value of the Collateral is higher than the Loan value.
(5) Loan receivable quality after restructuring is determined:
a. at most equal to the loan receivable quality before restructuring was conducted, if the Customer has not met the obligation to pay principal installments and/or interest consecutively for 3 (three) periods according to the agreed time; b. can increase at most 1 (one) level from the loan receivable quality before restructuring was conducted, after the Customer has met the obligation to pay principal installments and/or interest consecutively for 3 (three) periods as referred to in letter a; and
c. based on assessment factors as referred to in Article 175:

after the determination of loan receivable quality as referred to in letter b; or
in the event the Customer does not meet the requirements and/or payment obligations in the restructuring agreement, both during and after 3 (three) periods of payment obligations according to the agreed time.
(6) The Financial Services Authority may determine the quality of restructured loan receivables based on assessment factors as referred to in Article 175, in the event the loan receivable restructuring conducted by the Company is not supported by adequate restructuring policies as referred to in paragraph (3). (7) In the event the period for fulfilling principal and/or interest installment obligations is less than 1 (one) month, the quality increase as referred to in paragraph (5) letter b can be carried out no earlier than 3 (three) months from the time restructuring was conducted. (8) The assessment of loan receivable quality in restructuring as referred to in paragraph (5) must be accompanied and supplemented with supporting documents for the assessment of loan receivable quality. (9) Additional quality of loan receivables as part of a restructuring package is determined to be the same as the quality of the restructured loan receivables.

Article 179
(1) The Company must calculate loan loss provisions.
(2) The calculation of loan loss provisions as referred to in paragraph (1) is determined as:
a. 1% (one percent) of the remaining principal of Loans with good quality after being reduced by Collateral; b. 5% (five percent) of the remaining principal of Loans with special attention quality after being reduced by Collateral;
c. 15% (fifteen percent) of the remaining principal of Loans with doubtful quality after being reduced by Collateral;
d. 50% (fifty percent) of the remaining principal of Loans with questionable quality after being reduced by Collateral; or e. 100% (one hundred percent) of the remaining principal of Loans with non-performing quality after being reduced by Collateral. (3) The Company must form loan loss provisions at a minimum according to the provisions as referred to in paragraph (2). (4) The value of Collateral as referred to in paragraph (2) that can be calculated as the remaining principal of the Loan is determined at most equal to the loan receivable balance.

Article 180
(1) The Company must form impairment loss provisions for loan receivables in accordance with financial accounting standards.
(2) The formation of impairment loss provisions for loan receivables as referred to in paragraph (1) is carried out in the preparation of financial reports audited by public accountants. (3) The formation of impairment loss provisions for loan receivables as referred to in paragraph (1) is exempted for Companies that are not required to submit audited annual financial reports.

Part Three
Administrative Sanctions
Article 181
(1) Companies that violate the provisions as referred to in Article 175 paragraph (1), paragraph (6), Article 176 paragraph (1), paragraph (2), Article 177 paragraph (1), paragraph (3), Article 179 paragraph (1), paragraph (3), and/or Article 180 paragraph (1) shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;

c. restriction on certain business activities;
d. reduction of risk assessment results; e. revocation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most Rp50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been remedied, the Financial Services Authority imposes administrative sanctions in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the results of the Health Level assessment; b. conduct a re-evaluation of the main parties that caused the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties related to the Company that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER XV
FINANCING

Article 182
(1) The Company is prohibited from obtaining financing other than in the form of:
a. additional Paid-up Capital not through public offering of shares; b. loans from government institutions, banks, non-bank financial industries, institutions, and/or other business entities;
c. subordinated loans;
d. issuance of securities through public offering; e. issuance of debt securities not through public offering; and/or f. asset securitization.
(2) The Company must use funds obtained from financing sources in accordance with the purposes established in written agreements. https://jdih.ojk.go.id/

Article 183
In the event that the Company receives loans from institutions and/or other business entities as referred to in Article 182 paragraph (1) letter b, the Company must accept loans that meet the following provisions:
a. the loan amount is at least Rp1,000,000,000.00 (one billion rupiah) for each creditor; b. the loan repayment period is at least 1 (one) year;
c. it is stipulated in the form of a notarial deed agreement between the Company and the lender; and
d. it cannot be automatically extended.

Article 184
Companies receiving subordinated loans as referred to in Article 182 paragraph (1) letter c must ensure that the aforementioned subordinated loans meet the following provisions:
a. having a term of at least 5 (five) years; b. in the event of Liquidation, the claim rights apply last among all existing loans; and
c. stipulated in the form of a notarial deed agreement between the Company and the lender.

Article 185
Companies intending to issue securities through public offering as referred to in Article 182 paragraph (1) letter d and issuing debt securities not through public offering as referred to in Article 182 letter e must meet the following requirements:
a. it has been included in the Company's business plan; b. having a Health Level with a minimum Composite Rating of 2;
c. not currently subject to sanctions of partial or total suspension of business activities and/or restriction of business activities; and
d. having Equity in accordance with the minimum Equity provisions for the Company.

Article 186
The provisions on the issuance of securities through public offering as referred to in Article 182 paragraph (1) letter d refer to provisions of legislation in the field of the capital market.

Article 187
(1) Companies intending to issue securities through public offering as referred to in Article 182 paragraph (1) letter d must report the plan to issue securities at the latest 2 (two) months before the General Meeting of Shareholders approving the public offering or limited public offering. (2) The reporting of the plan to issue securities through public offering as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the document requirements for reporting the plan to issue securities through public offering contained in the Appendix in table 41 which is an integral part of this Financial Services Authority Regulation. (3) In the event that the Financial Services Authority has received the report as referred to in paragraph (2) completely, the Financial Services Authority issues a letter recording the plan to issue securities in the Financial Services Authority's administration at the latest 20 (twenty) working days since the report was received.

Article 188
(1) In the event that the Company issues debt securities not through public offering as referred to in Article 182 paragraph (1) letter e, the Company must issue debt securities that meet the following provisions:
a. rating is conducted with a rating result of at least investment grade conducted by a rating agency that has a business license from the Financial Services Authority; and b. rated periodically at least 1 (one) time per year. (2) The provisions on the issuance of securities not through public offering as referred to in paragraph (1) are carried out in accordance with provisions of legislation regarding the issuance of debt securities and/or sukuk conducted without public offering.

Article 189
(1) Companies intending to issue debt securities not through public offering as referred to in Article 182 paragraph (1) letter e must report the plan to issue securities at the latest 2 (two) months before issuance. (2) The reporting of the plan to issue debt securities not through public offering as referred to in paragraph (1) must be submitted by the Board of Directors to the Financial Services Authority by attaching the document requirements for reporting the plan to issue debt securities not through public offering contained in the Appendix in table 42 which is an integral part of this Financial Services Authority Regulation. (3) In the event that the Financial Services Authority has received the report as referred to in paragraph (2) completely, the Financial Services Authority issues a letter recording the issuance of debt securities not through public offering in the Financial Services Authority's administration at the latest 20 (twenty) working days since the report was received. https://jdih.ojk.go.id/

Article 190
(1) Companies with national business scope may receive loans as referred to in Article 182 paragraph (1) letter b in foreign currency.
(2) Companies intending to receive loans in foreign currency as referred to in paragraph (1) must:
a. have a Health Level with a minimum Composite Rating of 2; b. not currently subject to sanctions of partial or total suspension of business activities and/or restriction of business activities; and
c. have Equity in accordance with the minimum Equity provisions for the Company.
(3) Companies with national business scope receiving financing in the form of:
a. loans as referred to in Article 182 paragraph (1) letter b; b. subordinated loans as referred to in Article 182 paragraph (1) letter c;
c. issuance of securities through public offering as referred to in Article 182 paragraph (1); and
d. issuance of debt securities not through public offering as referred to in Article 182 paragraph (1) letter e, in foreign currency must conduct full hedging.
(4) Full hedging as referred to in paragraph (3) must be implemented for loan principal, loan interest rates, and/or payment terms.

Article 191
(1) Companies violating the provisions as referred to in Article 182, Article 183, Article 184, Article 185, Article 187 paragraph (1), Article 188 paragraph (1), Article 189 paragraph (1), and/or Article 190 paragraph (2), paragraph (3), paragraph (4) are subject to administrative sanctions in the form of:
a. written warning; b. partial or total suspension of business activities;
c. restriction on certain business activities;
d. reduction of risk assessment results; e. revocation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most Rp50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been remedied, the Financial Services Authority imposes administrative sanctions in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the results of the Health Level assessment; b. conduct a re-evaluation of the main parties that caused the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties related to the Company that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.
https://jdih.ojk.go.id/

CHAPTER XVI
INVESTMENT

Article 192
(1) The Company is prohibited from making direct investments other than in:
a. companies in the financial services sector in Indonesia; and/or b. companies related to the Company's activities.
(2) The total amount of the Company's direct investments is prohibited from exceeding 20% (twenty percent) of the Company's Equity.
(3) The total amount of the Company's direct investments to entities within 1 (one) group is prohibited from exceeding 10% (ten percent) of the Company's Equity.
(4) The Company must fulfill the provisions on the amount of direct investments as referred to in paragraph (2) and paragraph (3) at the time of making the investment.
(5) The provisions as referred to in paragraph (2) and paragraph (3) are exempted for Pawnshop Companies making direct investments to Shariah Pawnshop Companies resulting from Separation.

Article 193
(1) Companies violating the provisions as referred to in Article 192 paragraph (1), paragraph (2), paragraph (3), and/or paragraph (4) are subject to administrative sanctions in the form of:
a. written warning; b. partial or total suspension of business activities;
c. restriction on certain business activities;
d. reduction of risk assessment results; https://jdih.ojk.go.id/

e. revocation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine.
(2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most Rp50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been remedied, the Financial Services Authority imposes administrative sanctions in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the results of the Health Level assessment; b. conduct a re-evaluation of the main parties that caused the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties related to the Company that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER XVII
CAPITAL

Article 194
(1) The Company must fulfill Equity of at least:
a. Rp1,000,000,000.00 (one billion rupiah) for municipal/city business scope; b. Rp4,000,000,000.00 (four billion rupiah) for provincial business scope; and
c. Rp50,000,000,000.00 (fifty billion rupiah) for national business scope.
(2) The Company must have an Equity to Paid-up Capital ratio of at least 50% (fifty percent).

Article 195
(1) Companies violating the provisions as referred to in Article 194 are subject to administrative sanctions in the form of:
a. written warning b. partial or total suspension of business activities;
c. restriction on certain business activities;
https://jdih.ojk.go.id/

d. reduction of risk assessment results; e. revocation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most Rp50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been remedied, the Financial Services Authority imposes administrative sanctions in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the results of the Health Level assessment; b. conduct a re-evaluation of the main parties that caused the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties related to the Company that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER XVIII
HEALTH LEVEL
First Section
General

Article 196
(1) The Company must fulfill Health Level requirements of at least Composite Rating 3.
(2) The Health Level as referred to in paragraph (1) is conducted with an assessment scope covering factors:
a. capital; b. quality of Loan receivables;
c. profitability;
d. liquidity; and e. management.
(3) Further provisions regarding Health Level are determined by the Financial Services Authority. https://jdih.ojk.go.id/

Second Section
Capital

Article 197
(1) Assessment of the capital factor as referred to in Article 196 paragraph (2) letter a includes assessment of capital adequacy, projections, and capital capacity to anticipate risks. (2) Assessment of the capital factor as referred to in paragraph (1) is conducted at least against parameters fulfilling the provisions:
a. Equity as referred to in Article 194 paragraph (1); and b. Equity ratio compared to Paid-up Capital as referred to in Article 194 paragraph (2).

Third Section
Quality of Loan Receivables

Article 198
Assessment of the loan receivables quality factor as referred to in Article 196 paragraph (2) letter b includes assessment of the following components:
a. quality of Loan receivables; b. risk exposure concentration;
c. adequacy of policies and procedures;
d. loan granting documentation; and e. performance of handling problematic Loan receivables balances.

Fourth Section
Profitability

Article 199
Assessment of the profitability factor as referred to in Article 196 paragraph (2) letter c includes assessment of the following components:
a. the ability of productive assets to generate profit; and b. the level of operational efficiency.

Fifth Section
Liquidity

Article 200
(1) Assessment of the liquidity factor as referred to in Article 196 paragraph (2) letter d includes assessment of the following components:
a. the ability to meet short-term and long-term obligations, and the potential occurrence of mismatches between short-term and long-term obligations; and b. the adequacy of liquidity management policies. (2) The Company must maintain a liquidity ratio of at least 120% (one hundred twenty percent). https://jdih.ojk.go.id/

(3) The liquidity ratio as referred to in paragraph (2) is calculated by comparing current assets and current liabilities.

Sixth Section
Management

Article 201
Assessment of the management factor as referred to in Article 196 paragraph (2) letter e includes assessment of the following components:
a. the quality of general management, including the implementation of fulfillment of commitments to the Financial Services Authority or other parties; b. the application of risk management, especially management's understanding of the Company's risks; and
c. the Company's compliance with Shariah Principles and the implementation of social functions, for Shariah Pawnshop Companies.

Seventh Section
Calculation of Composite Rating

Article 202
(1) Each Health Level assessment factor as referred to in Article 196 paragraph (2) is assigned a rating based on comprehensive and structured analysis.
(2) The rating of each factor as referred to in paragraph (1) is categorized:
a. rating 1; b. rating 2;
c. rating 3;
d. rating 4; and e. rating 5.

Article 203
(1) Composite Rating is determined based on comprehensive and structured analysis of each factor's rating as referred to in Article 196 paragraph (2) considering the materiality and significance of each factor. (2) Composite Rating as referred to in paragraph (1) is categorized:
a. Composite Rating 1; b. Composite Rating 2;
c. Composite Rating 3;
d. Composite Rating 4; and e. Composite Rating 5.
(3) Composite Rating 1 as referred to in paragraph (2) letter a reflects the condition of the Company that is generally very healthy so it is assessed as very capable of facing significant negative influences from changes in business conditions and other external factors. https://jdih.ojk.go.id/

(4) Composite Rating 2 as referred to in paragraph (2) letter b reflects the condition of the Company that is generally healthy so it is assessed as capable of facing significant negative influences from changes in business conditions and other external factors. (5) Composite Rating 3 as referred to in paragraph (2) letter c reflects the condition of the Company that is generally quite healthy so it is assessed as quite capable of facing significant negative influences from changes in business conditions and other external factors. (6) Composite Rating 4 as referred to in paragraph (2) letter d reflects the condition of the Company that is generally less healthy so it is assessed as less capable of facing significant negative influences from changes in business conditions and other external factors. (7) Composite Rating 5 as referred to in paragraph (2) letter e reflects the condition of the Company that is generally not healthy so it is assessed as unable to face significant negative influences from changes in business conditions and other external factors. (8) Further provisions regarding Composite Rating of Health Level are determined by the Financial Services Authority.

Eighth Section
Administrative Sanctions

Article 204
(1) Companies violating the provisions as referred to in Article 196 paragraph (1) and/or Article 200 paragraph (2) are subject to administrative sanctions in the form of:
a. written warning; b. partial or total suspension of business activities;
c. restriction on certain business activities;
d. reduction of risk assessment results; e. revocation of approval; f. prohibition from becoming a PSP, Board of Directors, Board of Commissioners, and/or DPS; and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most Rp50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event that violations of the provisions as referred to in paragraph (1) occur and the violations have been remedied, the Financial Services Authority imposes administrative sanctions in the form of a written warning that ends automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. reduce the results of the Health Level assessment; b. conduct a re-evaluation of the main parties that caused the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties related to the Company that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.
https://jdih.ojk.go.id/

CHAPTER XIX
PERIODIC REPORTING
First Section
Periodic Reporting

Article 205
(1) The Company must submit periodic reports to the Financial Services Authority in the form of:
a. monthly reports; and b. annual financial reports that have been audited by public accountants registered with the Financial Services Authority.
(2) Provisions regarding monthly reports as referred to in paragraph (1) letter a are regulated in Financial Services Authority Regulations regarding monthly reports of non-bank financial service institutions.

Article 206
(1) The obligation to submit annual financial reports as referred to in Article 205 paragraph (1) letter b applies to Companies meeting the criteria:
a. Companies with provincial business scope and national business scope; and b. Companies with municipal/city business scope that have Equity of at least Rp4,000,000,000.00 (four billion rupiah). (2) The Company must submit annual financial reports as referred to in paragraph (1) to the Financial Services Authority at the latest 4 (four) months after the fiscal year ends. (3) The Company must include annual financial reports audited by public accountants as referred to in paragraph (1) on the Company's website at the latest May 31 of the following year. (4) The fiscal year as referred to in paragraph (2) is based on the calendar year. https://jdih.ojk.go.id/

(5) If the deadline for submitting reports as referred to in paragraph (1) falls on a holiday, the deadline for submitting reports is on the next working day.
(6) If the deadline for submitting reports as referred to in paragraph (1) falls on a public holiday, the Financial Services Authority is authorized to set the deadline for report submission. (7) In the event that the Company obtains a business license for less than 6 (six) months until the end of the calendar year, the obligation to submit annual financial reports as referred to in paragraph (3) shall apply in the following calendar year.

Article 207
(1) Annual financial reports as referred to in Article 205 paragraph (1) letter b must be prepared based on financial accounting standards.
(2) Annual financial reports as referred to in Article 205 paragraph (1) letter b must be prepared in Indonesian Rupiah.
(3) Public accountants as referred to in Article 205 paragraph (1) letter b must be registered with the Financial Services Authority.

Article 208
(1) Annual financial reports as referred to in Article 205 paragraph (1) letter b must disclose Key Audit Matters to the Financial Services Authority.
(2) The disclosure of Key Audit Matters in annual reports as referred to in paragraph (1) is exempted if:
a. applicable laws and regulations prohibit the disclosure of those selected as Key Audit Matters to the public; and/or b. in conditions having adverse consequences to public interest that exceed their benefits.

Article 209
In addition to periodic reports as referred to in Article 205 paragraph (1), the Company is required to submit ad hoc reports if required by the Financial Services Authority.

Second Section
Administrative Sanctions

Article 210
(1) Companies that violate the provisions as referred to in Article 205 paragraph (1), Article 206 paragraph (2), paragraph (3), Article 207, Article 208 paragraph (1), and/or Article 209 are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming a Third-Party Payment Service Provider (PSP), Board of Directors, Board of Commissioners, and/or Supervisory Board (DPS); and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most Rp50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) 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 administrative sanctions in the form of written warnings that expire automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. reduce the Health Level assessment results; b. re-evaluate the main parties causing the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties causing the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER XX
CONSUMER AND SOCIETY PROTECTION

Article 211
(1) The Company applies consumer protection principles in the conduct of business in accordance with applicable laws and regulations regarding consumer and society protection in the financial services sector. (2) The mechanism and procedures for applying consumer protection principles as referred to in paragraph (1) are implemented in accordance with applicable laws and regulations regarding consumer and society protection in the financial services sector.

CHAPTER XXI
ANTI-FRAUD STRATEGY

Article 212
(1) The Company formulates and implements an effective anti-fraud strategy.
(2) The formulation and implementation of the anti-fraud strategy as referred to in paragraph (1) are implemented in accordance with Financial Services Authority Regulations regarding the implementation of anti-fraud strategies for financial service institutions.

CHAPTER XXII
ANTI-MONEY LAUNDERING, PREVENTION OF TERRORISM FINANCING, AND PREVENTION OF PROLIFERATION OF WEAPONS OF MASS DESTRUCTION FINANCING

Article 213
(1) The Company implements an effective anti-money laundering, prevention of terrorism financing, and prevention of proliferation of weapons of mass destruction financing program. (2) The implementation of the anti-money laundering, prevention of terrorism financing, and prevention of proliferation of weapons of mass destruction financing program as referred to in paragraph (1) is implemented in accordance with Financial Services Authority Regulations regarding the implementation of anti-money laundering, prevention of terrorism financing, and prevention of proliferation of weapons of mass destruction financing programs in the financial services sector.

Article 214
(1) The Company is required to determine the beneficial owners of the Company.
(2) The determination of the Company's beneficial owners is implemented in accordance with applicable laws and regulations governing the application of the beneficial owner identification principle for corporations in the context of implementing anti-money laundering, terrorism financing, proliferation of weapons of mass destruction financing, and other financial crime programs. (3) The Company is required to submit reports on the determination of beneficial owners as referred to in paragraph (1) or changes in beneficial owners, at the latest 10 (ten) working days after the determination or change of the Company's beneficial owners. (4) In addition to the determination of beneficial owners as referred to in paragraph (1), the Financial Services Authority may determine parties meeting the requirements as beneficial owners of the Company.

Article 215
(1) Companies that violate the provisions as referred to in Article 214 paragraph (1) and/or paragraph (3) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming a Third-Party Payment Service Provider (PSP), Board of Directors, Board of Commissioners, and/or Supervisory Board (DPS); and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most at Rp50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes administrative sanctions in the form of written warnings. (5) 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 administrative sanctions in the form of written warnings that expire automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority may be authorized to:
a. reduce the Health Level assessment results; b. re-evaluate the main parties causing the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties related to the Company causing the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER XXIII
SUPERVISION AND DETERMINATION OF SUPERVISION STATUS

First Section
Supervision

Article 216
(1) The Financial Services Authority has the authority to conduct supervision over the Company.
(2) Supervision over the Company as referred to in paragraph (1) is implemented in accordance with Financial Services Authority Regulations regarding direct examination of non-bank financial service institutions. (3) The Financial Services Authority conducts integrated supervision over Companies that are part of financial conglomerates in accordance with Financial Services Authority Regulations regarding financial conglomerates.

Second Section
Determination of Supervision Status

Article 217
(1) The supervision status of the Company is determined by the Financial Services Authority.
(2) The supervision status of the Company as referred to in paragraph (1) consists of:
a. normal supervision; b. intensive supervision; or
c. special supervision.
(3) The determination of supervision status as referred to in paragraph (2) is based on factors:
a. Composite Rating; and/or b. quantitative parameters.
(4) The determination of supervision status as referred to in paragraph (1) is carried out at any time according to the Financial Services Authority's assessment, considering the Company's condition based on factors as referred to in paragraph (3).

Third Section
Criteria for Supervision Status

Article 218
The determination of the Company in intensive supervision status as referred to in Article 217 paragraph (2) letter b, if:
a. the Company's Health Level is set at Composite Rating 4 (four); and/or b. meets quantitative parameters consisting of:

Equity to Paid-up Capital ratio is greater than or equal to 0% (zero percent) and less than 25% (twenty-five percent); and/or
Net Problematic Loan Quality Balance ratio is greater than 5% (five percent) and less than 25% (twenty-five percent).

Article 219
(1) Companies with intensive supervision status as referred to in Article 217 paragraph (2) letter b are determined by the Financial Services Authority for a maximum period of 1 (one) year from the date of the Financial Services Authority's notification letter. (2) If the period of intensive supervision status as referred to in paragraph (1) expires and the Company still meets the criteria as referred to in Article 218, the Financial Services Authority may determine an extension of the Company's supervision status period at most 1 (one) time for a maximum period of 1 (one) year. (3) The determination of extension of the intensive supervision status period as referred to in paragraph (2) is accompanied by increased supervisory actions. (4) The determination of extension of the period as referred to in paragraph (3) is based on the Financial Services Authority's assessment considering the resolution of the approved action plan.

Article 220
The determination of the Company in special supervision status as referred to in Article 217 paragraph (2) letter c, if:
a. the period as referred to in Article 219 paragraph (1) or paragraph (2) expires and the Company still meets the criteria as referred to in Article 218; b. the Company's Health Level is set at Composite Rating 5 (five);
c. meets quantitative parameters consisting of:

Equity to Paid-up Capital ratio is less than 0% (zero percent); and/or
Net Problematic Loan Quality Balance ratio is greater than or equal to 25% (twenty-five percent); and/or
d. meets criteria other than those referred to in letters a, b, and c that impact the Company's business continuity and/or significantly harm the interests of Customers/society.

Article 221
(1) Companies with special supervision status as referred to in Article 217 paragraph (2) letter c, the supervision status period is determined by the Financial Services Authority for a maximum of 6 (six) months from the date of the Financial Services Authority's notification letter. (2) If the period for Companies with special supervision status as referred to in paragraph (1) expires, the Financial Services Authority may determine an extension of the Company's supervision status period at most 1 (one) time with a maximum period of 6 (six) months. (3) The determination of extension of the special supervision status period as referred to in paragraph (2) is accompanied by increased supervisory actions. (4) The determination of extension of the period as referred to in paragraph (2) is based on the Financial Services Authority's assessment considering the resolution of the approved action plan.

Article 222
Companies meeting the intensive supervision criteria as referred to in Article 218 or special supervision criteria as referred to in Article 220 may not be determined in intensive supervision or special supervision status if:
a. the Company is in the process of Merger, Consolidation, or Takeover; and/or b. the Company is in the process of adding capital contributions which have at least been recorded in the capital contribution criteria.

Article 223
Companies with special supervision status determined by the Financial Services Authority cannot be rehabilitated in the event:
a. the time limit for special supervision status expires; and b. the Company still meets the criteria as referred to in Article 220.

Article 224
(1) In the event that the Financial Services Authority determines that a Company with special supervision status cannot be rehabilitated as referred to in Article 223, the Financial Services Authority revokes the Company's business license. (2) The revocation of the Company's business license as referred to in paragraph (1) is communicated in writing to:
a. Board of Directors; b. Board of Commissioners; and
c. PSP.
(3) The revocation of the Company's business license as referred to in paragraph (1) is announced on the Financial Services Authority's website.

Fourth Section
Follow-up on Supervision Status and Procedures for Submission of Reports

Article 225
Follow-up on supervision status and procedures for submission of supervision status reports are implemented in accordance with Financial Services Authority Regulations regarding the determination of status and follow-up on supervision of non-bank financial service institutions.

CHAPTER XXIV
SUBMISSION OF LICENSING APPLICATIONS, APPROVALS, AND REPORTS ELECTRONICALLY

Article 226
(1) Licensing applications, approval applications, and reports as referred to in Article 5 paragraph (6), Article 10 paragraph (2), Article 12 paragraph (3), Article 15 paragraph (1), Article 18 paragraph (2), Article 19 paragraph (2), Article 23 paragraph (2), Article 27 paragraph (2), Article 34 paragraph (2), Article 36 paragraph (2), Article 38 paragraph (2), Article 41 paragraph (2), Article 42 paragraph (2), Article 43 paragraph (5), Article 46 paragraph (2), Article 50 paragraph (2), Article 51 paragraph (3), Article 53 paragraph (3), Article 57 paragraph (5), Article 65 paragraph (1), Article 67 paragraph (2), Article 68 paragraph (2), Article 70 paragraph (2), Article 72 paragraph (5), Article 73 paragraph (2), Article 74 paragraph (2), Article 77 paragraph (4), Article 80 paragraph (2), Article 81 paragraph (2), Article 83 paragraph (2), Article 84 paragraph (2), Article 86 paragraph (2), Article 89 paragraph (2), Article 91 paragraph (2), Article 99 paragraph (3), Article 101 paragraph (2), Article 104 paragraph (3), Article 111 paragraph (4), Article 139 paragraph (2), Article 140 paragraph (3), Article 165 paragraph (2), Article 189 paragraph (2), and/or Article 214 paragraph (3) are submitted through the Financial Services Authority's data communication network system. (2) With the submission of licensing applications, approval applications, and reports to the Financial Services Authority online as referred to in paragraph (1), the Company does not need to submit printed documents. (3) The Company is required to account for every document submitted online through the Financial Services Authority's data communication network system as being documents consistent with the original documents. (4) In the event that the Financial Services Authority's data communication network system as referred to in paragraph (1) is not yet available or experiences technical difficulties, the Company submits licensing applications, approval applications, and reports in the form of electronic data via email designated by the Financial Services Authority. (5) Further provisions regarding licensing applications, approval applications, and reports through the Financial Services Authority's data communication network system as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 227
(1) The Company is required to store printed documents of licensing, approval, and reporting documents that have been submitted through the Financial Services Authority's data communication network system as referred to in Article 226 paragraph (1). (2) The Financial Services Authority may conduct verification and/or validation of the truthfulness and reasonableness of printed documents of licensing, approval, and reporting applications, as referred to in Article 226 paragraph (1) which have been submitted by the Company through the Financial Services Authority's data communication network system. (3) The Company is required to provide printed documents of licensing, approval, and reporting applications, as referred to in Article 226 paragraph (1) which have been submitted by the Company through the Financial Services Authority's data communication network system during the implementation of verification and/or validation by the Financial Services Authority as referred to in paragraph (2).

Article 228
(1) Companies that violate the provisions as referred to in Article 226 paragraph (3) and/or Article 227 paragraph (1), paragraph (3) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming a Third-Party Payment Service Provider (PSP), Board of Directors, Board of Commissioners, and/or Supervisory Board (DPS); and/or g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most at Rp50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes administrative sanctions in the form of written warnings. (5) 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 administrative sanctions in the form of written warnings that expire automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority may be authorized to:
a. reduce the Health Level assessment results; b. re-evaluate the main parties causing the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties related to the Company causing the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

CHAPTER XXV
OTHER PROVISIONS

Article 229
(1) The Financial Services Authority is authorized to request the Company to submit a plan for fulfilling compliance with violations of this Financial Services Authority Regulation. (2) The Company is required to submit the fulfillment plan at the latest 1 (one) month from the date of the determination of the violation by the Financial Services Authority. (3) The fulfillment plan as referred to in paragraph (1) must at least contain:
a. the plan to be carried out by the Company; and b. a specific time period required to fulfill the provisions as referred to in letter a.
(4) The fulfillment plan as referred to in paragraph (1) must be signed by all members of the Board of Directors and Board of Commissioners.

Article 230
(1) Companies that violate the provisions as referred to in Article 229 paragraph (2) are subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction of certain business activities;
d. reduction of risk assessment results; e. cancellation of approval; f. prohibition from becoming a Third-Party Payment Service Provider (PSP), Board of Directors, Board of Commissioners, and/or Supervisory Board (DPS); g. administrative fine. (2) Administrative sanctions as referred to in paragraph (1) letters b through g may be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) letter g are imposed at most Rp50,000,000.00 (fifty million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes administrative sanctions. (5) 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 administrative sanctions in the form of written warnings that expire automatically. (6) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. reduce the Health Level assessment results; b. re-evaluate the main parties causing the Company to violate the provisions as referred to in paragraph (1); and/or
c. record the track record of parties causing the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system.

Article 231
The Financial Services Authority may, based on certain considerations, provide approvals or policies that differ from this Financial Services Authority Regulation.

CHAPTER XXVI
TRANSITIONAL PROVISIONS

Article 232
(1) Business licenses for private pawnshop companies that have been issued based on Financial Services Authority Regulation Number 31/POJK.01/2016 regarding Pawnshop Business are declared to remain valid as business licenses for the Company. (2) Business licenses for government pawnshop companies that have been issued based on Financial Services Authority Regulation Number 31/POJK.01/2016 regarding Pawnshop Business are declared to be valid as business licenses for Pawnshop Companies with a national business scope based on this Financial Services Authority Regulation.

Article 233
Licensing applications and approval applications that have been received by the Financial Services Authority and have not yet received approval or rejection at the time this Financial Services Authority Regulation comes into force, are processed in accordance with Financial Services Authority Regulation Number 31/POJK.05/2016 regarding Pawnshop Business.

Pasal 234
Companies that have obtained a business license at the time this Otoritas Jasa Keuangan Regulation is promulgated, must report the determination of PSP and its amendments to the Otoritas Jasa Keuangan no later than 6 (six) months since this Otoritas Jasa Keuangan Regulation is promulgated.

Pasal 235
The provisions regarding the fulfillment of Paid-up Capital obligations as referred to in Article 6 paragraph (2) do not apply to Companies that have obtained a business license from the Otoritas Jasa Keuangan before this Otoritas Jasa Keuangan Regulation is promulgated.

Pasal 236
For Companies that have obtained a business license at the time this Otoritas Jasa Keuangan Regulation is promulgated, the obligations regarding the prohibition of dual positions for Appraisers as referred to in Article 56 paragraph (2) shall take effect 1 (one) year since this Otoritas Jasa Keuangan Regulation is promulgated.

Pasal 237
(1) Companies that have obtained a business license after this Otoritas Jasa Keuangan Regulation is promulgated, must comply with the provisions regarding the obligation to register as members of the Association as referred to in Article 88 paragraph (1) which shall take effect 1 (one) year since this Otoritas Jasa Keuangan Regulation is promulgated. (2) For Associations that have existed before this Otoritas Jasa Keuangan Regulation is promulgated, the Association must obtain written approval from the Otoritas Jasa Keuangan no later than 1 (one) year since this Otoritas Jasa Keuangan Regulation is promulgated. (3) The provisions regarding the obligation of the Association to have an ethics committee function in its organizational structure as referred to in Article 93 shall take effect 1 (one) year since this Otoritas Jasa Keuangan Regulation is promulgated.

Pasal 238
For Companies that have obtained a business license at the time this Otoritas Jasa Keuangan Regulation is promulgated, the obligations regarding the ratio of Loans with Collateral based on Pledge law as referred to in Article 137 shall take effect 2 (two) years since this Otoritas Jasa Keuangan Regulation is promulgated.

Pasal 239
For Companies that have obtained a business license at the time this Otoritas Jasa Keuangan Regulation is promulgated, the obligations regarding direct participation as referred to in Article 192 shall take effect 1 (one) year since this Otoritas Jasa Keuangan Regulation is promulgated.

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

Pasal 240
Companies that have obtained a business license at the time this Otoritas Jasa Keuangan Regulation is promulgated, the obligations regarding:
a. BMPP as referred to in Article 168 paragraph (1), Article 169 paragraph (1), and Article 169 paragraph (2); b. quality of receivables for Loans with Collateral based on Fiducia law as referred to in Article 175 paragraph (1) letter b;
c. ratio of net bad loan balances as referred to in Article 177 paragraph (3);
d. provision for loan write-off reserves as referred to in Article 179 paragraph (1); e. provision for impairment losses on loan receivables as referred to in Article 180 paragraph (1); f. criteria for Health Status in determining supervision status as referred to in Article 218 letter a and Article 220 letter b; g. criteria for the ratio of Equity to Paid-up Capital in determining supervision status as referred to in Article 218 letter b number 1 and Article 220 letter c number 1; and h. criteria for the ratio of net bad loan quality balances in determining supervision status as referred to in Article 218 letter b number 2 and Article 220 letter c number 2, shall take effect on December 31, 2025.

Pasal 241
The provisions regarding the assessment of Health Status as referred to in Article 196 paragraph (1) are declared to take effect 1 (one) year since this Otoritas Jasa Keuangan Regulation is promulgated.

Pasal 242
For Companies that have obtained a business license at the time this Otoritas Jasa Keuangan Regulation is promulgated, the obligations regarding the quality of receivables for Loans with Collateral based on Pledge law as referred to in Article 175 paragraph (1) letter a shall take effect on December 31, 2026.

Pasal 243
(1) Companies that have obtained a business license at the time this Otoritas Jasa Keuangan Regulation is promulgated, the obligations regarding Equity as referred to in Article 194 paragraph (1) shall take effect 2 (two) years since this Otoritas Jasa Keuangan Regulation is promulgated. (2) Companies that have obtained a business license at the time this Otoritas Jasa Keuangan Regulation is promulgated, the obligations regarding the ratio of Equity to Paid-up Capital in determining supervision status as referred to in Article 194 paragraph (2) shall take effect 1 (one) year since this Otoritas Jasa Keuangan Regulation is promulgated.

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

Pasal 244
(1) Companies that have obtained a business license with a business scope of province and regency/city at the time this Otoritas Jasa Keuangan Regulation is promulgated, the obligations regarding the submission of monthly reports as referred to in Article 205 paragraph (1) letter a for the first time shall take effect in the monthly reporting period of December 2026. (2) Companies that have obtained a business license as Companies with a business scope of province and regency/city at the time this Otoritas Jasa Keuangan Regulation is promulgated, the obligations regarding:
a. submission of annual financial reports as referred to in Article 205 paragraph (1) letter b; b. posting of annual financial reports on the Company's website as referred to in Article 206 paragraph (3); and
c. disclosure of key audit matters as referred to in Article 208 paragraph (1),
for the first time shall take effect in the annual financial reporting period ending December 31, 2026.

Pasal 245
(1) Agreements regarding the provision of Loans with Collateral based on Pledge law, the provision of Loans with Collateral based on Fiducia law, and trust service agreements that have been signed before this Otoritas Jasa Keuangan Regulation is promulgated, are declared to remain valid until the agreement expires. (2) Agreements regarding cooperation between the Company and other parties through Refinancing Loans or Joint Loans as referred to in Article 157 paragraph (1) that have been signed before this Otoritas Jasa Keuangan Regulation is promulgated, are declared to remain valid until the agreement expires. (3) In the event that agreements as referred to in paragraph (1) and paragraph (2) require amendments and/or extensions of the agreement after the promulgation of this Otoritas Jasa Keuangan Regulation, the amendments and/or extensions of such agreements must comply with the provisions in this Otoritas Jasa Keuangan Regulation.

Pasal 246
(1) Work competency certificates in the field of Appraisal of Collateral obtained from:
a. LSP; and/or b. other parties appointed by the Otoritas Jasa Keuangan, before this Otoritas Jasa Keuangan Regulation is promulgated, are declared to remain valid.
(2) In the event that the LSP conducting work competency certification in the field of Appraisal of Collateral has not yet been formed, work competency certification in the field of Appraisal of Collateral may be conducted by:
a. LSP; b. Association; and/or
c. other parties appointed by the Otoritas Jasa Keuangan.
(3) LSP, Association, and/or other parties appointed by the Otoritas Jasa Keuangan that have conducted certification in the field of financing institutions, venture capital companies, microfinance institutions, and other financial service institutions and have not yet registered with the Otoritas Jasa Keuangan at the time this Otoritas Jasa Keuangan Regulation is promulgated must comply with the provisions as LSP registered with the Otoritas Jasa Keuangan no later than 3 (three) years since this Otoritas Jasa Keuangan Regulation is promulgated.

Pasal 247
(1) Administrative sanctions that have been imposed on Companies based on Otoritas Jasa Keuangan Regulation Number 31/POJK.05/2016 concerning Pawnshop Business are declared to remain valid insofar as they do not conflict with this Otoritas Jasa Keuangan Regulation. (2) Companies that have not been able to overcome the causes of the imposition of administrative sanctions as referred to in paragraph (1) are subject to further sanctions in accordance with the procedures for imposing sanctions as regulated in this Otoritas Jasa Keuangan Regulation.

BAB XXVII
CLOSING PROVISIONS

Pasal 248
At the time this Otoritas Jasa Keuangan Regulation takes effect, the implementation provisions of Otoritas Jasa Keuangan Regulation Number 31/POJK.05/2016 concerning Pawnshop Business (State Gazette of the Republic of Indonesia Year 2016 Number 152, Supplement to the State Gazette of the Republic of Indonesia 5913), are declared to remain valid insofar as they do not conflict with the provisions in this Otoritas Jasa Keuangan Regulation.

Pasal 249
At the time this Otoritas Jasa Keuangan Regulation takes effect, Otoritas Jasa Keuangan Regulation Number 31/POJK.05/2016 concerning Pawnshop Business (State Gazette of the Republic of Indonesia Year 2016 Number 152, Supplement to the State Gazette of the Republic of Indonesia 5913), is revoked and declared invalid.

Pasal 250
This Otoritas Jasa Keuangan Regulation takes effect on the date of promulgation.

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

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

In order for everyone to know it, ordering the promulgation of this Otoritas Jasa Keuangan Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on December 24, 2024
DEPUTY CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC
OF INDONESIA AS A MEMBER OF THE COMMISSIONERS
BOARD REPLACING THE CHAIRMAN OF THE COMMISSIONERS BOARD FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA, signed MIRZA ADITYASWARA

Promulgated in Jakarta on December 27, 2024
MINISTER OF LAW OF THE REPUBLIC OF INDONESIA, signed SUPRATMAN ANDI AGTAS

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2024 NUMBER 52/OJK https://jdih.ojk.go.id/

EXPLANATION
OF
OTORITAS JASA KEUANGAN REPUBLIK INDONESIA
REGULATION
NUMBER 39 YEAR 2024
CONCERNING
PAWNSHOP BUSINESS

I. GENERAL
In order to create a reform of the Indonesian financial sector which is a main prerequisite for building a dynamic, solid, independent, sustainable, and just Indonesian economy, the Government has established Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector. Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector is drafted to increase collaboration by presenting interconnectivity both among financial sector institutions and with all financial service industry sectors. Since the promulgation of Otoritas Jasa Keuangan Regulation 31/POJK.05/2016 concerning Pawnshop Business, the Otoritas Jasa Keuangan has encouraged Pawnshop business actors to be supervised and regulated in a structured and integrated regime, namely by becoming licensed pawnshop companies at the Otoritas Jasa Keuangan. In line with its development, the pawnshop industry shows growth both in terms of the transformation of Pawnshop business actors and the development of marketed products. Based on the implementation of these provisions and the development of current conditions, changes are needed as a form of continuity to realize a healthier, more competitive, and sustainable pawnshop industry. In line with these objectives and in order to follow up on the mandate of Article 106 paragraph (6), Article 111 paragraph (2), Article 112 paragraph (3), Article 113 paragraph (4), Article 114 paragraph (3), Article 115 paragraph (5), Article 116 paragraph (3), Article 121 paragraph (2), Article 122 paragraph (3), Article 123 paragraph (2), Article 124 paragraph (2), Article 125 paragraph (4), Article 128 paragraph (4), Article 252 paragraph (4), Article 269, Article 270, Article 270 paragraph (3), and Article 282 paragraph (3) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, it is necessary to update the regulations regarding pawnshop business.

II. ARTICLE BY ARTICLE

Pasal 1
Sufficiently clear.

Pasal 2
Sufficiently clear.

Pasal 3
Paragraph (1)
Letter a
Sufficiently clear.
Letter b
What is meant by “local government” is the Provincial Local Government or Regency/City Local Government.
Letter c
Sufficiently clear.
Letter d
Sufficiently clear.
Letter e
Sufficiently clear.
Letter f
Sufficiently clear.
Paragraph (2)
Sufficiently clear.

Pasal 4
Sufficiently clear.

Pasal 5
Sufficiently clear.

Pasal 6
Paragraph (1)
For the business scope of regency/city and province, the determination of the business area is based on the area that corresponds to the location of the Company's headquarters. Example:
A Company with Paid-up Capital of Rp15,000,000,000.00 (fifteen billion rupiah) applies for a business license as a Company with a business scope of province with the headquarters located in Surabaya. Therefore, the business scope of the aforementioned Company is the province of East Java. Paragraph (2) Sufficiently clear. Paragraph (3) Sufficiently clear.

Pasal 7
Paragraph (1)
Letter a
What is meant by “loan” is all forms of provision of facilities for the provision of money or claims that can be equated, based on approval or agreement between the lender and the borrower, including those organized based on Sharia Principles. Letter b Other financial crimes include corruption and tax crimes. Paragraph (2) Sufficiently clear. Paragraph (3) Sufficiently clear. Paragraph (4) Sufficiently clear. Paragraph (5) Sufficiently clear. Paragraph (6) Sufficiently clear. Paragraph (7) Sufficiently clear.

Pasal 8
Sufficiently clear.

Pasal 9
Paragraph (1)
The imposition of administrative sanctions considers among others:
a. the impact of the violation of provisions on consumer losses, the Company's condition, and the financial services sector; b. the complexity of the violation of provisions;
c. the Company's financial condition; and/or
d. repeated violations of provisions.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.
Paragraph (6)
Sufficiently clear.

Pasal 10
Sufficiently clear.

Pasal 11
Sufficiently clear.

Pasal 12
Sufficiently clear.

Pasal 13
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.
Paragraph (6)
Sufficiently clear.

Pasal 14
Sufficiently clear.

Pasal 15
Sufficiently clear.

Pasal 16
Sufficiently clear.

Pasal 17
Sufficiently clear.

Pasal 18
Sufficiently clear.

Pasal 19
Sufficiently clear.

Pasal 20
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.
Paragraph (6)
Sufficiently clear.

Pasal 21
Sufficiently clear.

Pasal 22
Sufficiently clear.

Pasal 23
Sufficiently clear.

Pasal 24
Sufficiently clear.

Pasal 25
Sufficiently clear.

Pasal 26
Sufficiently clear.

Pasal 27
Sufficiently clear.

Pasal 28
Sufficiently clear.

Pasal 29
Sufficiently clear.

Pasal 30
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Letter a
Sufficiently clear.
Letter b
Examples of other forms permitted based on statutory regulations and in accordance with Sharia accounting standards, namely the recognition of assets owned by UUS previously as Paid-up Capital of Sharia Pawnshop Company, evidenced by the closing financial position report and the opening financial position report of the Sharia Pawnshop Company. UUS assets that can be recognized as Paid-up Capital are at least equal to UUS Equity.

Pasal 31
Sufficiently clear.

Pasal 32
Sufficiently clear.

Pasal 33
Sufficiently clear.

Pasal 34
Sufficiently clear.

Pasal 35
Sufficiently clear.

Pasal 36
Sufficiently clear.

Pasal 37
Sufficiently clear.

Pasal 38
Sufficiently clear.

Pasal 39
Sufficiently clear.

Pasal 40
Sufficiently clear.

Pasal 41
Sufficiently clear.

Pasal 42
Sufficiently clear.

Pasal 43
Sufficiently clear.

Pasal 44
Sufficiently clear.

Pasal 45
Sufficiently clear.

Pasal 46
Sufficiently clear.

Pasal 47
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.
Paragraph (6)
Sufficiently clear.

Pasal 48
Sufficiently clear.

Pasal 49
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Adequacy of human resources includes meeting the provisions regarding the prohibition of dual positions and ensuring that the function can be carried out properly.
Letter d
Sufficiently clear.
Letter e
Sufficiently clear.

Pasal 50
Sufficiently clear.

Pasal 51
Sufficiently clear.

Pasal 52
Sufficiently clear.

Pasal 53
Sufficiently clear.

Pasal 54
Sufficiently clear.

Pasal 55
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.
Paragraph (6)
Sufficiently clear.

Pasal 56
Sufficiently clear.

Pasal 57
Sufficiently clear.

Pasal 58
Sufficiently clear.

Pasal 59
Sufficiently clear.

Pasal 60
Sufficiently clear.

Pasal 61
Sufficiently clear.

Pasal 62
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.
Paragraph (6)
Sufficiently clear.

Pasal 63
Paragraph (1)
Changes in ownership include among others:
a. changes in share composition; b. takeover;
c. changes in Paid-up Capital without resulting in changes in share composition; and
d. addition of new shareholders.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
What is meant by “takeover” is a legal act carried out by a legal entity or individual to take over shares of the Company resulting in the transfer of control over the Company. Paragraph (4) Letter a Sufficiently clear Letter b Sufficiently clear Letter c Sufficiently clear Letter d What is meant by “bonus shares” are shares distributed free of charge to shareholders based on the number of shares owned. Bonus shares consist of:
a. which are stock dividends, originating from the capitalization of retained earnings; and b. which are not stock dividends, originating from the capitalization of:

share premium; and/or
other Equity elements.
Paragraph (5)
Sufficiently clear.

Pasal 64
Sufficiently clear.

Pasal 65
Sufficiently clear.

Pasal 66
Sufficiently clear.

Pasal 67
Sufficiently clear.

Pasal 68
Sufficiently clear.

Pasal 69
Sufficiently clear.

Pasal 70
Sufficiently clear.

Pasal 71
Sufficiently clear.

Pasal 72
Sufficiently clear.

Pasal 73
Sufficiently clear.

Pasal 74
Sufficiently clear.

Pasal 75
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.
Paragraph (6)
Sufficiently clear.

Pasal 76
Sufficiently clear.

Pasal 77
Sufficiently clear.

Pasal 78
Sufficiently clear.

Pasal 79
Sufficiently clear.

Pasal 80
Sufficiently clear.

Pasal 81
Sufficiently clear.

Pasal 82
Sufficiently clear.

Pasal 83
Sufficiently clear.

Pasal 84
Sufficiently clear.

Pasal 85
Sufficiently clear.

Pasal 86
Sufficiently clear.

Pasal 87
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.
Paragraph (6)
Sufficiently clear.

Pasal 88
Sufficiently clear.

Pasal 89
Sufficiently clear.

Pasal 90
Sufficiently clear.

Pasal 91
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Examples of corrective actions:
Association work programs deemed to burden Association members.

Pasal 92
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Sufficiently clear.
Letter d
Other duties of the Association include participating in certain efforts to develop, strengthen, and rehabilitate the pawnshop industry and/or requested to disseminate information from the Otoritas Jasa Keuangan to all Association members. Paragraph (3) Sufficiently clear. Paragraph (4) Sufficiently clear. Paragraph (5) Certain actions include among others the replacement of management if they have a problematic track record at the Company.

Pasal 93
Sufficiently clear.

Pasal 94
Annual reports submitted to the Otoritas Jasa Keuangan include among others the implementation of the Association's duties and financial reports audited by public accountants registered with the Otoritas Jasa Keuangan.

Pasal 95
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.
Paragraph (6)
Sufficiently clear.

Pasal 96
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.

Pasal 97
Sufficiently clear.

Pasal 98
Sufficiently clear.

Pasal 99
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Settling obligations includes among others the Company's commitment to settle part or all of the obligations.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.
Paragraph (6)
Sufficiently clear.
Paragraph (7)
Sufficiently clear.
Paragraph (8)
Sufficiently clear.
Paragraph (9)
Sufficiently clear.
Paragraph (10)
Sufficiently clear.

Pasal 100
Letter a
Sufficiently clear.
Letter b
What is meant by “daily newspaper” is a daily newspaper that has circulation adjusted to the scope of the Company's business area.
Letter c
Sufficiently clear.

Pasal 101
Sufficiently clear.

Pasal 102
Sufficiently clear.

Pasal 103
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
The determination of the deadline for submitting the closing financial position report is carried out by considering among others the office location, asset conditions, and the complexity of the Company's problems. Paragraph (4) Sufficiently clear. Paragraph (5) Sufficiently clear. Paragraph (6) Sufficiently clear. Paragraph (7) Sufficiently clear. Paragraph (8) Sufficiently clear.

Pasal 104
Sufficiently clear.

Pasal 105
Sufficiently clear.

Pasal 106
Sufficiently clear.

Pasal 107
Sufficiently clear.

Pasal 108
Sufficiently clear.

Pasal 109
Sufficiently clear.

Pasal 110
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Sufficiently clear.
Letter d
Sufficiently clear.
Letter e
Other parties include among others actuaries, appraisers, and attorneys/lawyers/legal consultants.
Letter f
Sufficiently clear.
Letter g
Sufficiently clear.
Letter h
Sufficiently clear.

Pasal 111
Sufficiently clear.

Pasal 112
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Considering effectiveness and efficiency includes considering the number of creditors and the number of assets.
Paragraph (4)
Sufficiently clear.

Pasal 113
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
What is meant by “marriage relationship, stepfamily relationship, or blood relationship upwards, downwards, and sideways up to the first degree” is:
a. husband or wife; b. parents and children;
c. parents of husband or wife;
d. husband or wife of children; e. full/step siblings; or f. full/step siblings of husband or wife.

Pasal 114
Sufficiently clear.

Pasal 115
Sufficiently clear.

Pasal 116
Sufficiently clear.

Pasal 117
Sufficiently clear.

Pasal 118
Sufficiently clear.

Pasal 119
Sufficiently clear.

Pasal 120
Sufficiently clear.

Pasal 121
Sufficiently clear.

Pasal 122
Sufficiently clear.

Pasal 123
Sufficiently clear.

Pasal 124
Sufficiently clear.

Pasal 125
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
See the explanation of Article 110 letter e.

Pasal 126
Sufficiently clear.

Pasal 127
Sufficiently clear.

Pasal 128
Sufficiently clear.

Pasal 129
Sufficiently clear.

Pasal 130
Sufficiently clear.

Pasal 131
Sufficiently clear.

Pasal 132
Sufficiently clear.

Pasal 133
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.
Paragraph (6)
Sufficiently clear.

Pasal 134
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.
Paragraph (6)
Sufficiently clear.

Pasal 135
Sufficiently clear.

Pasal 136
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Sufficiently clear.
Letter d
Income based on commissions is commonly known as fee based income.
Letter e
What is meant by “other business activities” is business activities carried out among others in the context of government assignments, development of pawnshop products, and/or cooperation in the context of obtaining business. Paragraph (3) Sufficiently clear. Paragraph (4) What is meant by “outside the scope of its business area” is outside the scope of the Company's business area. Example:
Company AB is a Company with a business scope of regency/city C. The Company can only provide Loans within 1 (one) regency/city C.
Paragraph (5)
Sufficiently clear.

Pasal 137
Loans provided include business activities consisting of the provision of Loans with Collateral based on Pledge law, the provision of Loans with Collateral based on Fiducia law, and the provision of Loans through other business activities with the approval of the Otoritas Jasa Keuangan. Loans with Collateral based on Fiducia law that are government assignments are not included in this ratio.

Pasal 138
Letter a
What is meant by “using Collateral” is taking the benefit value of the Collateral in forms such as being used for personal or company interests, leased, or lent.
Letter b
Sufficiently clear.
Letter c
Sufficiently clear.
Letter d
Sufficiently clear.

Article 139
It is clear enough.

Article 140
It is clear enough.

Article 141
Letter a
The term “adl” means placing something only in its proper place, giving something only to those entitled, and treating something according to its position.
The term “tawazun” means encompassing balance in material and spiritual aspects, private and public aspects, the financial sector and the real sector, business and social aspects, and balance in the aspects of utilization and sustainability. The term “maslahah” refers to all forms of goodness with worldly and hereafter dimensions, material and spiritual, as well as individual and collective, and must meet 3 (three) elements, namely Sharia compliance (halal), benefit, and bringing goodness (thoyib) in all overall aspects without causing harm. The term “alamiyah” means it can be done by, with, and for all interested parties (stakeholders) without distinguishing ethnicity, religion, race, and sect, in accordance with the spirit of universal mercy (rahmatan lil alamin).

Letter b
The term “gharar” refers to transactions where the object is unclear, not owned, the existence is unknown, or it cannot be delivered at the time the transaction is conducted, unless otherwise regulated in Sharia. The term “maysir” refers to transactions that are speculative and not directly related to productivity in the real sector. The term “riba” refers to the assurance of illegal income addition (bathil), including in transactions exchanging similar goods that do not have equal quality, quantity, and delivery time (fadhl), or in loan transactions requiring the recipient of the facility to return funds received exceeding the principal loan due to the passage of time (nasiah). The term “zhulm” refers to transactions that cause injustice to other parties. The term “risywah” refers to bribery in the form of money, facilities, or other forms that violate the law as an effort to obtain facilities or ease in a transaction. The term “objek haram” refers to goods or services prohibited in Sharia.

Letter c
It is clear enough.

Article 142
It is clear enough.

Article 143
It is clear enough.

Article 144
It is clear enough.

Article 145
It is clear enough.

Article 146
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
Appraisal tools include gold testing water, scales, diamond testing needles, gold testing needles, testing stones, and/or software for appraising electronic goods.
Letter b
The term “fair market price of Collateral” is the price prevailing in the local market.

Article 147
It is clear enough.

Article 148
Paragraph (1)
It is clear enough.
Paragraph (2)
Letter a
The term “Customer sells their Collateral themselves” means the Customer brings a prospective buyer to the Company, not by taking the Collateral out of the Company’s possession. Letter b It is clear enough. Paragraph (3) It is clear enough. Paragraph (4) This provision is intended to prevent the Company from attempting to obtain prospective buyers at a fair price, which would result in harm to the Customer. Paragraph (5) The term “affiliation” means:

family relationships due to marriage or descent up to the second degree, both horizontally and vertically, with employees, Board of Directors members, Board of Commissioners members, DPS members, and/or shareholders of the Company;
relationships with the Company due to the existence of one or more common Board of Directors or Board of Commissioners members;
control relationships with the Company, both directly and indirectly;
share ownership relationships in the Company of 20% (twenty percent) or more; and/or
relationships between 2 (two) companies controlled, both directly and indirectly, by the same party.
The term “buying directly” means the Company or its employees buying the Collateral directly from the Customer.
The term “buying indirectly” means using third parties as intermediaries representing the interests of the Company or its employees, or buying the Customer’s Collateral directly from third parties. Paragraph (6) It is clear enough.

Article 149
It is clear enough.

Article 150
It is clear enough.

Article 151
Paragraph (1)
It is clear enough.
Paragraph (2)
The term “recording separately” means creating a separate account in the financial statements.
Paragraph (3)
It is clear enough.

Article 152
It is clear enough.

Article 153
Paragraph (1)
It is clear enough
Paragraph (2)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
The term “custody agreement” is an agreement between the Company and the Customer regarding the service of depositing valuable goods.
Paragraph (3)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
The term “type of business activity” is the provision of Loans with Collateral based on Pledge law or the provision of Loans with Collateral based on Fiducia.
Letter d
It is clear enough.

Letter e
It is clear enough.
Letter f
It is clear enough.
Letter g
It is clear enough.
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.
Letter p
It is clear enough.
Letter q
It is clear enough.
Letter r
It is clear enough.

Article 154
It is clear enough.

Article 155
It is clear enough.

Article 156
It is clear enough.

Article 157
Paragraph (1)
Letter a
Channeling loans are known as channeling.
Letter b
Joint loans are known as joint financing.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
The term “Channeling loan with recourse” is a channeling loan from other parties to the Company requiring the Company to bear all or part of the Loan risk.
The term “Joint financing with recourse” is a joint loan between the Company and other parties requiring the Company to bear all or part of the Loan risk outside the portion of risk that should be borne by the Company based on the amount of funds disbursed. Cooperation in “Channeling loan with recourse” includes agreements with the owner of funds stipulating that if the Customer defaults, the Company is obligated to:
a. replace the Customer with another Customer who has a current Loan receivable quality; or b. continue to pay the owner of funds as a replacement for the Customer’s installments. Paragraph (5) The term “having the same management principles” means other parties that are legal entities and have the same business management principles. Paragraph (6) It is clear enough. Paragraph (7) It is clear enough.

Article 158
It is clear enough.

Article 159
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
Letter a
It is clear enough.
Letter b
The term “Company” is the Company where the Customer applies for the Loan.
Example:
Company A conducts joint financing cooperation with Company B within the business area of district/city C. If a Customer applies for a Loan with Collateral based on Pledge law to Company A, then the Pledge Certificate is issued by Company A.

Article 160
It is clear enough.

Article 161
It is clear enough.

Article 162
It is clear enough.

Article 163
It is clear enough.

Article 164
It is clear enough.

Article 165
It is clear enough.

Article 166
Paragraph (1)
Non-financial institutions include the use of population data, data center operators, partnerships, and others.
Paragraph (2)
It is clear enough.
Paragraph (3)
Letter a
It is clear enough.
Letter b
The term “financial product and service marketing services” is a service limited only to providing information in the information technology used by the Company without further interaction and not followed by financial transaction execution. Example:
An insurance company conducts financial product and service marketing cooperation with a Company by placing advertisements; when consumers click on the advertisement in question, consumers will be directed to the insurance company’s website without followed by financial transaction execution. Letter c It is clear enough. Letter d It is clear enough. Paragraph (4) It is clear enough. Paragraph (5) It is clear enough. Paragraph (6) It is clear enough. Paragraph (7) It is clear enough.

Article 167
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.

Article 168
Paragraph (1)
Example of BMPP calculation to all related parties:
Based on monthly report data as of April 30, 2024, PT Gadai DEF has Equity valued at Rp1,500,000,000.00 (one billion five hundred million rupiah). PT ABC is a related company with PT Gadai DEF. PT Gadai DEF has disbursed Loans to related parties including PT ABC totaling Rp600 million. On May 7, 2024, PT ABC obtained a new Loan ceiling valued at Rp200,000,000.00 (two hundred million rupiah) with disbursement carried out in stages as follows:

the first stage was disbursed on May 7, 2024, amounting to Rp90,000,000.00 (ninety million rupiah); and
the second stage was disbursed on May 14, 2024, with a value of Rp110,000,000.00 (one hundred ten million rupiah).
At the first stage disbursement on May 7, 2024, PT Gadai DEF did not violate the BMPP regulations for all related parties with the following calculation:
Equity as of April 30, 2024 Rp1,500,000,000.00 (one billion five hundred million rupiah).
BMPP for all related parties 50% x Rp1,500,000,000.00 (one billion five hundred million rupiah) = Rp750,000,000.00 (seven hundred fifty million rupiah).
Total Loan receivables as of May 7, 2024 = Rp600,000,000.00 (six hundred million rupiah) + Rp90,000,000.00 (ninety million rupiah) = Rp690,000,000.00 (six hundred ninety million rupiah) (46% of Equity value). At the second stage disbursement on May 14, 2024, PT Gadai DEF violated the BMPP regulations for all related parties with the following calculation:
Equity as of April 30, 2024 Rp1,500,000,000.00 (one billion five hundred million rupiah).
BMPP for all related parties 50% x Rp1,500,000,000.00 (one billion five hundred million rupiah) = Rp750,000,000.00 (seven hundred fifty million rupiah).
Total Loan receivables as of May 14, 2024 = Rp600,000,000.00 (six hundred million rupiah) + Rp90,000,000.00 (ninety million rupiah) + Rp110,000,000.00 (one hundred ten million rupiah) = Rp800,000,000.00 (eight hundred million rupiah) (53.33% of Equity value).

Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
Letter a
The term “controller” is a party that directly or indirectly has the ability to determine the board of directors, board of commissioners, or equivalents thereof in a legal entity in the form of a cooperative and/or influence the actions of the board of directors, board of commissioners, or equivalents thereof in a legal entity in the form of a cooperative. 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 The term “family relationships up to the second degree both horizontally and vertically” refers to the following parties:

biological/step/adopted parents;
biological/step/adopted siblings;
biological/step/adopted children;
biological/step/adopted grandparents;
biological/step/adopted grandchildren;
biological/step/adopted siblings of parents;
husband or wife;
in-laws;
husband or wife of biological/step/adopted children;
grandparents of husband or wife;
husband or wife of biological/step/adopted grandchildren; and
biological/step/adopted siblings of husband or wife along with the husband or wife of the sibling in question.

Letter g
The term “directors in business entities that are not in the form of a limited liability company or cooperative” is a party that performs management functions as regulated in statutory regulations. The term “board of commissioners in business entities that are not in the form of a limited liability company or cooperative” is a party that performs supervision and advisory functions as regulated in statutory regulations. Letter h It is clear enough. Letter i It is clear enough. Letter j Several factors used to determine the existence of financial interdependence between 2 (two) parties are as follows.

The value of transactions between both parties. In the event of material transactions between 1 (one) party and another party that directly affects the financial health of that party, it is established that the parties have financial interdependence.
Example of material transactions is when 50% (fifty percent) or more of gross income or gross expenditure annually from one party originates from transactions with another party;
Transaction relationships between parties that can cause financial dependence as follows:
a. sales dependence on certain parties; b. production process dependence where the production or production results of one party significantly depend on another party; and/or
c. dependence on loans or funding sources from certain parties so that in the event of default from the funding source, there are no other alternative funding sources.
Example of funding sources to pay off one party's debt to another party is the same for each party and that party has no other funding sources to repay the debt.
Analysis of these transaction relationships focuses only on the transactional relationship between one party directly with another party; and/or
Cash flow from one party will be significantly disrupted due to cash flow disruption from another party, thereby significantly affecting each party's ability to pay obligations to the Company and/or other parties. Furthermore, in the event one party defaults, it can correlate with the default of another party.

Paragraph (5)
It is clear enough.

Article 169
Paragraph (1)
Example of BMPP calculation per 1 (one) non-related party:
On April 30, 2024, PT KLM had total Loan receivables at PT Gadai XYZ amounting to Rp140,000,000.00 (one hundred forty million rupiah). Based on monthly report data as of April 30, 2024, PT Gadai XYZ has Equity valued at Rp1,500,000,000.00 (one billion five hundred million rupiah). PT MAS is not a related company with PT Gadai XYZ. On May 7, 2024, PT KLM obtained a new Loan ceiling valued at Rp200,000,000.00 (two hundred million rupiah) with disbursement carried out in stages as follows:

the first stage was disbursed on May 7, 2024, amounting to Rp90,000,000.00 (ninety million rupiah); and
the second stage was disbursed on May 14, 2024, with a value of Rp110,000,000.00 (one hundred ten million rupiah).
At the first stage disbursement on May 7, 2024, PT Gadai XYZ did not violate the BMPP regulations per Customer who is not a related party with the following calculation:
Equity as of April 30, 2024 Rp1,500,000,000.00 (one billion five hundred million rupiah).
BMPP per Customer who is not a related party 20% x Rp1,500,000,000.00 (one billion five hundred million rupiah) = Rp300,000,000.00 (three hundred million rupiah).
Total Loan receivables as of May 7, 2022 = Rp140,000,000.00 (one hundred forty million rupiah) + Rp90,000,000.00 (ninety million rupiah) = Rp250,000,000.00 (two hundred fifty million rupiah) (16.66% of Equity value). At the second stage disbursement on May 14, 2024, PT Gadai XYZ violated the BMPP regulations per Customer who is not a related party with the following calculation:
Equity as of April 30, 2024 Rp1,500,000,000.00 (one billion five hundred million rupiah).
BMPP per Customer who is not a related party 20% x Rp1,500,000,000.00 (one billion five hundred million rupiah) = Rp300,000,000.00 (three hundred million rupiah).
Total Loan receivables as of May 14, 2024 = Rp140,000,000.00 (one hundred forty million rupiah) + Rp90,000,000.00 (ninety million rupiah) + Rp110,000,000.00 (one hundred ten million rupiah) = Rp340,000,000.00 (three hundred forty million rupiah) (22.66% of Equity value).

Paragraph (2)
Example of BMPP regulations for 1 (one) group of Customers who are not related parties:
Based on monthly report data as of April 30, 2024, PT Gadai XYZ has Equity valued at Rp1,500,000,000.00 (one billion five hundred million rupiah). PT MAS is not a related company with PT Gadai XYZ. PT Gadai XYZ has also disbursed Loans to other companies in 1 group affiliated with PT MAS amounting to Rp600,000,000.00 (six hundred million rupiah). On May 7, 2024, PT MAS obtained a new Loan ceiling valued at Rp200,000,000.00 (two hundred million rupiah) with disbursement carried out in stages as follows:

the first stage was disbursed on May 7, 2024, amounting to Rp90,000,000.00 (ninety million rupiah); and
the second stage was disbursed on May 14, 2024, with a value of Rp110,000,000.00 (one hundred ten million rupiah).
At the first stage disbursement on May 7, 2024, PT Gadai XYZ did not violate the BMPP regulations for groups of Customers who are not related parties with the following calculation:
Equity as of April 30, 2022 Rp1,500,000,000.00 (one billion five hundred million rupiah).
BMPP for groups of Customers who are not related parties = 50% x Rp1,500,000,000.00 (one billion five hundred million rupiah) = Rp750,000,000.00 (seven hundred fifty million rupiah). Total Loan receivables as of May 7, 2024 = Rp600,000,000.00 (six hundred million rupiah) + Rp90,000,000.00 (ninety million rupiah) = Rp690,000,000.00 (six hundred ninety million rupiah) (46% of Equity value). At the second stage disbursement on May 14, 2024, PT Gadai XYZ violated the BMPP regulations for groups of Customers who are not related parties with the following calculation:

Equity as of April 30, 2024 Rp1,500,000,000.00 (one billion five hundred million rupiah).
BMPP for groups of Customers who are not related parties = 50% x Rp1,500,000,000.00 (one billion five hundred million rupiah) = Rp750,000,000.00 (seven hundred fifty million rupiah). Total Loan receivables as of May 14, 2024 = Rp600,000,000.00 (six hundred million rupiah) + Rp90,000,000.00 (ninety million rupiah) + Rp110,000,000.00 (one hundred ten million rupiah) = Rp800,000,000.00 (eight hundred million rupiah) (53.33% of Equity value).

Paragraph (3)
It is clear enough
Paragraph (4)
It is clear enough
Paragraph (5)
Letter a
It is clear enough.
Letter b
1 (one) same party being the controller of several ordinary Customers is commonly known as common ownership.
Letter c
See the explanation of Article 168 paragraph (4) letter j.
Letter d
It is clear enough.
Letter e
It is clear enough.

Article 170
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
Included in the change of regulations is the change of regulations regarding parties categorized as related parties.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.

Article 171
It is clear enough.

Article 172
It is clear enough.

Article 173
It is clear enough.

Article 174
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.

Article 175
It is clear enough.

Article 176
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
Letter a
Write-off implementation refers to financial accounting standards.
Letter b
It is clear enough.

Article 177
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
The ratio of net problematic Loan receivables balance is calculated by comparing the total Loans with substandard, doubtful, and loss quality minus the provision for Loan write-offs for Loans with substandard, doubtful, and loss quality with total Loan receivables. Paragraph (4) It is clear enough.

Article 178
It is clear enough.

Article 179
It is clear enough.

Article 180
It is clear enough.

Article 181
Paragraph (1)
See the explanation of Article 9 paragraph (1).

Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.

Article 182
It is clear enough.

Article 183
It is clear enough.

Article 184
It is clear enough.

Article 185
It is clear enough.

Article 186
It is clear enough.

Article 187
It is clear enough.

Article 188
It is clear enough.

Article 189
It is clear enough.

Article 190
It is clear enough.

Article 191
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.

Article 192
Paragraph (1)
Letter a
It is clear enough.

Letter b
Companies related to the Company's activities are companies that support the Company's main activities, including companies engaged in gold trading, credit information, and/or auctions. Paragraph (2) It is clear enough. Paragraph (3) It is clear enough. Paragraph (4) It is clear enough. Paragraph (5) It is clear enough.

Article 193
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.

Article 194
Paragraph (1)
It is clear enough.
Paragraph (2)
The term “ratio of Equity to Paid-up Capital” is the comparison between the Company's Equity amount and the Paid-up Capital amount.

Article 195
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.

Article 196
Paragraph (1)
It is clear enough.

Paragraph (2)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
Profitability is the Company's ability to generate profit.
Letter d
Liquidity is the level of compatibility between current assets and current liabilities.
Letter e
It is clear enough.
Paragraph (3)
It is clear enough.

Article 197
It is clear enough.

Article 198
It is clear enough.

Article 199
It is clear enough.

Article 200
It is clear enough.

Article 201
It is clear enough.

Article 202
It is clear enough.

Article 203
It is clear enough.

Article 204
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.

Article 205
It is clear enough.

Article 206
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
The term “holiday” is national holidays established by the Government.
Paragraph (6)
Joint holidays include joint leave established by the Government.
Paragraph (7)
It is clear enough.

Article 207
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
Regulations regarding the registration of public accountants are implemented in accordance with the Financial Services Authority Regulation regarding the use of public accountants and public accounting firms in financial service institution activities.

Article 208
Paragraph (1)
The term “key audit matters” is matters that, according to the auditor's professional judgment, are the most significant in the audit of current period financial statements.
Paragraph (2)
Letter a
It is clear enough
Letter b
Conditions having adverse consequences for public interest exceeding benefits include conditions that can cause significant stock price changes or cause a rush.

Article 209
It is clear enough.

Article 210
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.

Paragraph (5)
Clearly stated.
Paragraph (6)
Clearly stated.
Article 211
Clearly stated.
Article 212
Clearly stated.
Article 213
Clearly stated.
Article 214
Paragraph (1)
The term "beneficial owner" refers to an individual who has the right to and/or receives certain benefits related to customer accounts, is the ultimate owner of funds and/or securities placed with a financial service provider (ultimately own account), controls customer transactions, grants power of attorney to conduct transactions, controls corporations or other legal arrangements, and/or is the ultimate controller of transactions conducted through a legal entity or based on an agreement. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) The term "party qualifying as a Company's beneficial owner" refers to a party that, based on identification and verification of identity conducted by the Financial Services Authority, can be proven to have the ability to control the Company or other legal arrangements such as the appointment of the Board of Directors and/or Board of Commissioners, even if the party is not viewed from the ownership structure.
Article 215
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Paragraph (6)
Clearly stated.
Article 216
Clearly stated.

Article 217
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
The term "normal supervision" refers to supervision of a Company that meets the criteria as a Company assessed to have no potential difficulties endangering its business continuity or as a Company assessed to not be experiencing difficulties endangering its business continuity. Letter b The term "intensive supervision" refers to an increased supervision process against a Company that was previously under normal supervision, with the aim of restoring the Company's condition to normal supervision status. Actions to restore the Company's condition are carried out by establishing supervisory actions appropriate to the Company's problems. Letter c The term "special supervision" refers to an increased supervision process against a Company that was previously under normal or intensive supervision, with the aim of restoring the Company's condition to normal supervision status. Actions to restore the Company's condition are carried out by establishing supervisory actions appropriate to the Company's problems. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated.
Article 218
Letter a
Clearly stated.
Letter b
Number 1)
See the explanation of Article 194 paragraph (2).
Number 2)
See the explanation of Article 177 paragraph (3).
Article 219
Paragraph (1)
Clearly stated.
Paragraph (2)
The calculation of the duration of the Company's supervision status is at most 1 (one) year, including the duration for drafting and revising the action plan.

Paragraph (3)
The term "escalation of supervisory actions" refers to an increase in the number of supervisory actions and/or the application of supervisory actions that have a heavier impact on the Company than the supervisory actions established previously. Paragraph (4) The Financial Services Authority's assessment is given based on the belief that with the extension of time, the Company in question can resolve the problems it faces. The term "resolution of the approved action plan" includes, among others, the process of Company acquisition.
Article 220
Letter a
Clearly stated.
Letter b
Clearly stated.
Letter c
Number 1
See the explanation of Article 194 paragraph (2).
Number 2
See the explanation of Article 177 paragraph (3).
Letter d
Clearly stated.
Article 221
Clearly stated.
Article 222
Companies not designated under intensive or special supervision status are Companies with non-structural problems and are believed to still meet the criteria for Companies under normal supervision. Letter a Companies in the process of Merger, Consolidation, or Takeover are marked by the process of submitting information on the progress of drafting the Merger, Consolidation, or Takeover process by the Company to the Financial Services Authority, and the draft Merger, Consolidation, or Takeover has obtained approval from the Board of Commissioners of each Company involved in the Merger, Consolidation, or Takeover in accordance with this Financial Services Authority Regulation. The term "takeover" refers to a legal act performed by a legal entity or individual to take over shares of a Company resulting in the transfer of control over the Company. Letter b Capital contribution additions must at least be recorded in the capital contribution criteria meeting the requirements:

fully paid for the purpose of capital increase but not yet supported by the completeness of requirements to be classified as Paid-in Capital such as
the holding of a general meeting of shareholders and/or approval of the articles of association by the competent authority;
placed in a special account (escrow account) that does not yield interest;
cannot be withdrawn by shareholders or prospective shareholders;
available to absorb losses; and
the use of funds must be with the approval of the Financial Services Authority.
Article 223
Clearly stated.
Article 224
Clearly stated.
Article 225
Clearly stated.
Article 226
Clearly stated.
Article 227
Clearly stated.
Article 228
Paragraph (1)
See the explanation of Article 9 paragraph (1).
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Clearly stated.
Paragraph (5)
Clearly stated.
Paragraph (6)
Clearly stated.
Article 229
Paragraph (1)
The Financial Services Authority requests the Company to submit a plan for fulfilling violations, among others, if:
a. the violation in question has a significant impact on the Company's financial condition; and/or b. the fulfillment of the violation in question requires a certain period of time. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated.

Article 230
Clearly stated.
Article 231
Including approval or licensing policies includes, among others, restrictions on licensing or approval of pawnshop activities. The establishment of policies is based on considerations including:
a. supporting national policies. b. protecting public interests;
c. maintaining industry growth; and/or
d. maintaining healthy business competition.
The consideration of supporting national policies is intended so that the growth of the pawnshop industry does not become an obstacle to national policies established by the government, the Financial Services Authority, and/or relevant authorities. The consideration of protecting public interests is intended so that the pawnshop industry always meets the needs of the broad community with equal access and quality, as well as affordable costs. The consideration of maintaining industry growth is intended so that the industry can grow optimally in society. The consideration of maintaining healthy business competition is intended so that the provision of pawnshop services can be conducted honestly, not contrary to law, or not hindering business competition.
Article 232
Clearly stated.
Article 233
Clearly stated.
Article 234
Clearly stated.
Article 235
Clearly stated.
Article 236
Clearly stated.
Article 237
Clearly stated.
Article 238
Clearly stated.
Article 239
Clearly stated.
Article 240
Clearly stated.
Article 241
Clearly stated.

Article 242
Clearly stated.
Article 243
Clearly stated.
Article 244
Clearly stated.
Article 245
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Example:
When there is a change in the pledged item, the change to the agreement must meet the provisions in this Financial Services Authority Regulation.
Article 246
Clearly stated.
Article 247
Clearly stated.
Article 248
Clearly stated.
Article 249
Clearly stated.
Article 250
Clearly stated.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 120/OJK

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 39 OF 2024
CONCERNING
PAWNSHOPS

Table 1: List of Documents for Business License Requirements
No. List of Documents Description

Copy of the deed of establishment of the legal entity accompanied by proof of approval by the competent authority, at least containing:
a. name, domicile, and scope of business area; The scope of business area in letter a above is district/city, province, or national. For example, if the Company's headquarters is located in Bandung city and will operate in West Java province, the articles of association of the Company must state that the scope of business area is West Java province. b. purpose and objectives as well as business activities;
c. Paid-in Capital;
d. ownership; and e. authority, responsibility, term of office of the Board of Directors, Board of Commissioners, and/or Sharia Supervisory Board (DPS).
Copy of the last amendment to the articles of association accompanied by proof of approval, proof of consent, and/or receipt of notification from the competent authority, if any.
For Companies in the form of a limited liability company:
list of shareholders including details of each share ownership down to the last shareholder and/or beneficial owner, and list of other companies owned by shareholders.
For Companies in the form of a cooperative:
list of founding members including details of each founding capital contribution owned by members for Companies in the form of a cooperative.
The requirements in number 3 are adjusted to the form of the Company's legal entity. The last shareholder is commonly known as the ultimate shareholder. The beneficial owner is commonly known as the beneficial owner.
Statement letter from shareholders or founding members stating that:
a. the source of investment funds does not come from loans; and b. the source of investment funds does not come from money laundering, terrorism financing, proliferation financing of weapons of mass destruction, and other financial crimes, accompanied by an explanation of the flow of capital contribution funds of shareholders or founding members.
Data of shareholders other than PSP or founding members:
a. individuals, accompanied by:

photocopy of identification in the form of an identity card or valid passport;
photocopy of tax identification number (NPWP);
photocopy of tax return for the last 1 (one) year before the investment and other documents showing financial capacity and source of funds;
curriculum vitae with the latest 4x6cm color photo; and
stamped statement letter from the concerned party stating:
a) does not have non-performing loans and/or financing; b) is not included in the list of parties prohibited from becoming shareholders or parties managing, supervising, and/or having significant influence on financial service institutions; c) has never been sentenced for committing criminal offenses based on a final and binding court decision within the last 5 (five) years; d) has never been declared bankrupt or guilty causing a company or enterprise to be declared bankrupt based on a final and binding court decision within the last 5 (five) years; and e) has never been a PSP, member of the Board of Directors, member of the Board of Commissioners, or member of the Sharia Supervisory Board at a financial service company whose business license was revoked due to violations in the last 5 (five) years; b. legal entities, accompanied by:
copy of the deed of establishment of the legal entity, including articles of association including amendments to the articles of association regarding business activities, capital, shareholder structure, and management from the last, accompanied by proof of approval, proof of consent, recording, and/or receipt of notification from the competent authority;
financial reports audited by public accountants and the latest non-consolidated financial reports before capital contribution, signed by the directors or equivalent of the shareholders;
photocopy of tax identification number (NPWP); and
data of directors or equivalent of the legal entity, including:
a) photocopy of identification in the form of an identity card or valid passport; b) photocopy of tax identification number (NPWP); c) curriculum vitae with the latest 4x6cm color photo; and d) statement letter from the directors or equivalent of the legal entity in question stating that:
(1) the shareholder/founding member does not have non-performing loans and/or financing; (2) the shareholder/founding member is not included in the list of parties prohibited from becoming shareholders or parties managing, supervising, and/or having significant influence on financial service institutions; (3) the shareholder/founding member has never been sentenced for proven criminal offenses within a certain period before nomination, including:
The shareholder/founding member has never been sentenced for proven criminal offenses within a certain period before nomination is calculated from when the concerned party has finished serving the criminal sentence until the date of the Company's letter of application to the Financial Services Authority. (a) criminal offenses in the financial services sector whose sentence has been served within the last 20 (twenty) years before nomination; (b) criminal offenses, namely criminal offenses listed in the Criminal Code (KUHP) and/or similar to the KUHP abroad with a threat of imprisonment of 1 (one) year or more whose sentence has been served within the last 10 (ten) years before nomination; and/or (c) other criminal offenses with a threat of imprisonment of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trafficking, terrorism, counterfeiting money, in the field of taxation, in the field of forestry, in the field of the environment, and in the field of marine and fisheries, whose sentence has been served within the last 20 (twenty) years before nomination; (4) the shareholder/founding member has never been declared bankrupt or guilty causing a company or enterprise to be declared bankrupt based on a final and binding court decision within the last 5 (five) years; and (5) the shareholder/founding member has never been a PSP at a financial service company whose business license was revoked due to violations in the last 5 (five) years;
c. local governments, accompanied by photocopy of the regional regulation regarding regional capital participation for the establishment of the Company; and
d. central government, accompanied by photocopy of the government regulation regarding state capital participation of the Republic of Indonesia for the establishment of the Company.

Photocopy of proof of Paid-in Capital settlement in the form of:
a. proof of cash deposit from shareholders or founding members; b. Company bank statement since the date of capital contribution from shareholders or founding members until the date of application for the business license for placing time deposits; and
c. photocopy of proof of placement of Paid-in Capital in the form of time deposits in the name of the respective Company at one of:

commercial banks, Sharia commercial banks, or Sharia business units of commercial banks in Indonesia for Pawnshop Companies; or
Sharia commercial banks or Sharia business units of commercial banks in Indonesia for Sharia Pawnshop Companies,
which are legalized by the bank that is still valid during the process of applying for the business license.

Organizational structure accompanied by job descriptions, authority, responsibility, work procedures, and personnel.
Work plan for the first 3 (three) years at least containing:
a. vision, mission, and business strategy; b. policies and management plans, including:

business activity plans;
capital plans;
office network development plans;
organization, human resources, and/or information technology development plans; and
activities to increase financial literacy and inclusion plans;
c. initial financial position reports; and
d. projected financial reports for the next 1 (one) year on:
financial position reports;
comprehensive income statements; and
cash flow statements,
along with the assumptions used.

Work systems and procedures.
Proof of infrastructure readiness including:
a. proof of ownership or control of office buildings and rooms along with photos of the exterior of the building and interior of the rooms as well as room layout; b. list of fixed assets and inventory. The inventory list includes, among others, iron cabinets, gold testing tools, and computers.
c. example of Pawn Receipt or Loan Agreement with Fiduciary Security Items; and
d. information system infrastructure. Information system infrastructure includes, among others, hardware and software, including information systems supporting pawnshop activities and reporting to the Financial Services Authority.
Photocopy of tax identification number (NPWP).
Guidelines for risk management implementation.
Photocopy of cooperation agreements between foreign legal entity shareholders and Indonesian shareholders, for Companies that include participation from foreign legal entities, at least containing:
a. capital composition and details of authority, at least containing provisions regarding voting rights, profit and loss distribution, and appointment of members of the Board of Directors and members of the Board of Commissioners of the Company; and b. obligations of foreign legal entity shareholders to formulate and implement education and training programs according to their expertise.
Confirmation from the home country supervisory authority of the relevant foreign party for Companies with direct foreign party participation, if there is a supervisory authority in the home country of the foreign party.
Proof of expertise certification in pawnshop or finance for the Board of Directors and Board of Commissioners, and expertise certification for appraisers to conduct appraisals.
Recommendation letter for DPS from an institution having authority in setting fatwas in the field of Sharia, for Sharia Pawnshop Companies;
Photocopy of guidelines for the implementation of anti-money laundering, counter-terrorism financing, and counter-proliferation financing of weapons of mass destruction.
Photocopy of Good Corporate Governance guidelines for the Company.
Proof of payment of licensing fees in the framework of granting business licenses.
Additional documents for Sharia Pawnshop Companies:
a. copy of the minutes of the General Meeting of Shareholders regarding the appointment of DPS members, accompanied by a receipt of notification from the competent authority; b. copy of the articles of association stating one of the purposes and objectives of the company is to conduct business activities based on Sharia Principles that have been approved/approved by the competent authority;
c. proof of appointment of DPS members and proof of approval by the National Sharia Board regarding the appointment of DPS members; and
d. proof of DPS approval regarding compliance with Sharia Principles, at least including:

Company operational activities;
operational guidelines and marketed products; and
development, study, and recommendation of Company business activities which among others include products, operations, and marketing.

Table 2: List of Documents for Reporting Requirements on Business Activity Implementation
No. List of Documents Description

Photocopy of Pawn Receipt, Loan Agreement with Fiduciary Security Items, and/or receipt of deposit.

Table 3: List of Documents for Conversion License Requirements of Pawnshop Companies into Sharia Pawnshop Companies
No. List of Documents Description

Proof of announcement regarding the conversion plan and the impact of conversion on Customers at least through Branch Offices.
Draft minutes of the General Meeting of Shareholders approving the conversion into a Sharia Pawnshop Company.
Draft amendment to the articles of association containing:
a. name based on Sharia Principles; b. purpose and objectives of the Sharia Pawnshop Company to conduct business activities based on Sharia Principles; and
c. authority and responsibility of the DPS.
Organizational structure accompanied by job descriptions, authority, responsibility, and personnel.
Plan for resolving Customer rights and obligations.
Initial projected financial reports from the business activities of the converted Sharia Pawnshop Company.
Work plan related to business activities based on Sharia Principles to be conducted for the first 3 (three) years after obtaining the business license as a Sharia Pawnshop Company, at least containing:
a. work systems and procedures; b. example of Sharia-based Loan agreements to be used;
c. market opportunity and economic potential feasibility study;
d. loan provision plans and steps taken to realize the aforementioned plan; and e. projected financial reports for the next 1 (one) year on:

financial position reports;
comprehensive income statements; and
cash flow statements,
along with the assumptions used.

Table 4: List of Documents for Reporting Requirements on the Implementation of the General Meeting of Shareholders Approving Conversion into Sharia Pawnshop Companies
No. List of Documents Description

Photocopy of tax identification number (NPWP) in the name of the Sharia Pawnshop Company.
Copy of the amendment to the articles of association.
Copy of the minutes of the General Meeting of Shareholders approving the conversion into a Sharia Pawnshop Company.
Copy of the minutes of the General Meeting of Shareholders stating the appointment of members of the Board of Directors, members of the Board of Commissioners, and/or members of the DPS.
Proof of appointment of DPS members and proof of approval by the institution having authority in setting fatwas in the field of Sharia regarding the appointment of DPS members.
Proof of DPS approval regarding business activities based on Sharia Principles.
Proof of resolution of Customer rights and obligations, including:
a. proof of transfer of repayment of Loans to Users who do not approve the conversion; or b. proof of the amount of Customer rights transferred to another Pawnshop Company.

Table 5: List of Documents for Conversion Implementation Requirements
No. List of Documents Description

Articles of association that have been approved, agreed upon, or notified to the competent authority.

Table 6: List of Documents for Licensing Requirements for the Establishment of a Sharia Unit (UUS)

No.	List of Documents	Description
1.	Copy of the Articles of Association of the Pawnshop Company	Must state:<br>a. one of the purposes and objectives of conducting part of the business activities based on Sharia Principles; and<br>b. the authority and responsibility of the DPS,<br>accompanied by proof of approval and/or a notice receipt letter from the competent authority.<br>2. Copy of proof of capital deposit for the UUS in the form of a time deposit in the name of the Company at one of the Sharia commercial banks or Sharia business units of commercial banks in Indonesia, legalized by the bank, which is still valid during the process of submitting the license application for the establishment of the UUS.<br>3. Decision letter from the GMS or Board of Directors proving approval of the placement of working capital at the UUS, accompanied by the amount of the working capital placement.<br>4. DPS Documents, including:<br>a. minutes of the GMS regarding the appointment of the DPS; and<br>b. DPS recommendation letter from an institution having authority in the determination of fatwas in the Sharia field.<br>5. UUS Leadership Documents, including:<br>a. copy of identification in the form of an ID card or valid passport;<br>b. copy of the tax identification number;<br>c. Board of Directors decision letter of the Pawnshop Company regarding the appointment of UUS leadership;<br>d. statement letter from the UUS leadership and acknowledged by the Board of Directors of the Pawnshop Company stating that the UUS leadership:<br>1) does not have non-performing loans and/or financing; and<br>2) does not hold concurrent positions in other functions other than those aimed at supporting the implementation of business activities based on Sharia Principles;<br>e. curriculum vitae of the UUS leadership, completed with the latest 4x6 cm color photo; and<br>f. proof showing expertise, training, and/or experience in the Sharia finance field.<br>6. Proof of ownership or control of the office building showing the UUS office address, along with photos of the exterior of the building, interior photos, and room layout.<br>7. Example of a Pawn Certificate or Loan Agreement with Fiduciary Collateral to be used.<br>8. Work plan for the UUS to be formed, including work systems and procedures for the first 3 (three) years, which must at least contain:<br>a. feasibility study regarding market opportunities and economic potential;<br>b. target for granting Loans based on Sharia Principles and steps taken to achieve the aforementioned targets.<br>9. Work systems and procedures.<br>10. Initial financial report of the UUS, separate from the business activities of the Sharia Pawnshop Company.<br>11. Reporting documents on the use of agreements used in the provision of Loans based on Sharia Principles.

Table 7: List of Documents for Requirements for Approval of the Separation Plan of a Sharia Unit (UUS) Based on Self-Request

No.	List of Documents	Description
1.	Draft deed of Separation of the UUS.<br>2. Draft deed of establishment of the new Sharia Pawnshop Company.<br>3. Draft minutes of the GMS approving the Separation of the UUS.<br>4. Plan for the settlement of rights and obligations of UUS Customers.<br>5. Draft deed of establishment of the new Sharia Pawnshop Company.<br>6. Plan for the list of shareholders/founding members including details of each share ownership up to the ultimate shareholder and/or beneficial owner, as well as a list of other companies owned by the shareholders of the new Sharia Pawnshop Company.<br>7. Data on shareholders/founding members other than PSP or members of the new Sharia Pawnshop Company.<br>8. Notarized statement letter from the shareholders of the new Sharia Pawnshop Company stating that:<br>a. the source of funds for capital participation does not come from money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction; and<br>b. the source of funds for capital participation does not come from loans.<br>9. Copy of proof of capital deposit made in cash and in full in the form of a time deposit that has been legalized by a Sharia commercial bank or Sharia business unit of a commercial bank in Indonesia, which is still valid in the process of submitting the business license application.<br>10. Organizational structure accompanied by job descriptions, authorities, responsibilities, work procedures, and personnel.<br>11. Work plan to be carried out for the first 3 (three) years after obtaining the business license of the Sharia Pawnshop Company, at least containing:<br>a. vision, mission, and business strategy;<br>b. feasibility study of market opportunities and economic potential;<br>c. policies and management plans, including:<br>1) business activity plan;<br>2) capital plan;<br>3) Loan plan;<br>4) plan for the development and/or change of office network;<br>5) plan for the development of organization, human resources, and/or information technology; and<br>6) activity plan to increase financial literacy and inclusion;<br>d. projected financial reports for 1 (one) year ahead on:<br>1) financial position report;<br>2) comprehensive income statement; and<br>3) cash flow report,<br>along with the assumptions used; and<br>e. projected ratios and specific items.<br>12. Proof of certification of expertise in pawnshop or finance for the Board of Directors and Board of Commissioners, as well as certification of expertise for appraisers to conduct appraisals.

Table 8: List of Documents for Requirements for Reporting the Separation Plan of a Sharia Unit (UUS) Meeting Certain Criteria

No.	List of Documents	Description
1.	Draft deed of Separation of the UUS.<br>2. Draft deed of establishment of the new Sharia Pawnshop Company.<br>3. Draft minutes of the GMS approving the Separation of the UUS.<br>4. Plan for the settlement of rights and obligations of UUS Customers.<br>5. Draft deed of establishment of the new Sharia Pawnshop Company.<br>6. Plan for the list of shareholders/founding members including details of each share ownership up to the ultimate shareholder and/or beneficial owner, as well as a list of other companies owned by the shareholders of the new Sharia Pawnshop Company.<br>7. Data on shareholders/founding members other than PSP or members of the new Sharia Pawnshop Company.<br>8. Notarized statement letter from the shareholders of the new Sharia Pawnshop Company stating that:<br>a. the source of funds for capital participation does not come from money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction; and<br>b. the source of funds for capital participation does not come from loans.<br>9. Copy of proof of capital deposit made in cash and in full in the form of a time deposit that has been legalized by a Sharia commercial bank or Sharia business unit of a commercial bank in Indonesia, which is still valid in the process of submitting the business license application.<br>10. Organizational structure accompanied by job descriptions, authorities, responsibilities, work procedures, and personnel.<br>11. Work plan to be carried out for the first 3 (three) years after obtaining the business license of the Sharia Pawnshop Company, at least containing:<br>a. vision, mission, and business strategy;<br>b. feasibility study of market opportunities and economic potential;<br>c. policies and management plans, including:<br>1) business activity plan;<br>2) capital plan;<br>3) Loan plan;<br>4) plan for the development and/or change of office network;<br>5) plan for the development of organization, human resources, and/or information technology; and<br>6) activity plan to increase financial literacy and inclusion;<br>d. projected financial reports for 1 (one) year ahead on:<br>1) financial position report;<br>2) comprehensive income statement; and<br>3) cash flow report,<br>along with the assumptions used; and<br>e. projected ratios and specific items.<br>12. Proof of certification of expertise in pawnshop or finance for the Board of Directors and Board of Commissioners, as well as certification of expertise for appraisers to conduct appraisals.

Table 9: List of Documents for Requirements for Reporting the Separation Plan of a Sharia Unit (UUS) by Order of the Financial Services Authority

No.	List of Documents	Description
1.	Draft deed of Separation of the UUS.<br>2. Draft deed of establishment of the new Sharia Pawnshop Company.<br>3. Draft minutes of the GMS approving the Separation of the UUS.<br>4. Plan for the settlement of rights and obligations of UUS Customers.<br>5. Draft deed of establishment of the new Sharia Pawnshop Company.<br>6. Plan for the list of shareholders/founding members including details of each share ownership up to the ultimate shareholder and/or beneficial owner, as well as a list of other companies owned by the shareholders of the new Sharia Pawnshop Company.<br>7. Data on shareholders/founding members other than PSP or members of the new Sharia Pawnshop Company.<br>8. Notarized statement letter from the shareholders of the new Sharia Pawnshop Company stating that:<br>a. the source of funds for capital participation does not come from money laundering, terrorism financing, and financing of proliferation of weapons of mass destruction; and<br>b. the source of funds for capital participation does not come from loans.<br>9. Copy of proof of capital deposit made in cash and in full in the form of a time deposit that has been legalized by a Sharia commercial bank or Sharia business unit of a commercial bank in Indonesia, which is still valid in the process of submitting the business license application.<br>10. Organizational structure accompanied by job descriptions, authorities, responsibilities, work procedures, and personnel.<br>11. Work plan to be carried out for the first 3 (three) years after obtaining the business license of the Sharia Pawnshop Company, at least containing:<br>a. vision, mission, and business strategy;<br>b. feasibility study of market opportunities and economic potential;<br>c. policies and management plans, including:<br>1) business activity plan;<br>2) capital plan;<br>3) Loan plan;<br>4) plan for the development and/or change of office network;<br>5) plan for the development of organization, human resources, and/or information technology; and<br>6) activity plan to increase financial literacy and inclusion;<br>d. projected financial reports for 1 (one) year ahead on:<br>1) financial position report;<br>2) comprehensive income statement; and<br>3) cash flow report,<br>along with the assumptions used; and<br>e. projected ratios and specific items.<br>12. Proof of certification of expertise in pawnshop or finance for the Board of Directors and Board of Commissioners, as well as certification of expertise for appraisers to conduct appraisals.

Table 10: List of Documents for Requirements for Reporting the Implementation of the GMS Approving the Separation of the UUS

No.	List of Documents	Description
1.	Copy of the GMS minutes deed approving the Separation of the UUS.<br>2. Copy of the deed of Separation of the UUS.<br>3. Copy of the deed of establishment of the legal entity accompanied by proof of approval from the competent authority.<br>4. Copy of the GMS minutes deed for the new Sharia Pawnshop Company resulting from the Separation of the UUS stating the appointment of the Board of Directors, Board of Commissioners, and DPS.<br>5. Proof of payment of licensing fees for the issuance of the business license.<br>6. Initial or opening financial position report of the new Sharia Pawnshop Company resulting from the Separation of the UUS.<br>7. Proof of infrastructure readiness of the new Sharia Pawnshop Company resulting from the Separation of the UUS.<br>8. Proof of settlement of rights and obligations.

Table 11: List of Documents for Requirements for Reporting the Implementation of the Separation of the UUS

No.	List of Documents	Description
1.	Articles of Association that have been approved, agreed upon, or notified to the competent authority.

Table 12: List of Documents for Requirements for Approval of the Closure of the UUS

No.	List of Documents	Description
1.	Draft minutes of the GMS deed approving the cessation of business activities for the provision of Loans based on Sharia Principles.<br>2. Reasons for the closure of the UUS.<br>3. List of Loans granted accompanied by information on the Customer's name, the nominal amount of the Loan received, and the Loan term.<br>4. Procedure for the settlement of rights and obligations of the UUS.

Table 13: List of Documents for Requirements for Reporting the Cessation of UUS Business Activities

No.	List of Documents	Description
1.	Copy of the decision regarding the issuance of the license for the establishment of the UUS.<br>2. Final financial position report of the UUS.<br>3. Proof of the implementation of the announcement of the plan to cease UUS business activities and the plan to settle UUS liabilities in a daily newspaper with national circulation, the electronic system used by the Company, mail, and/or announcement through other media to each Customer.<br>4. Proof of the settlement of rights and obligations of the UUS.<br>5. Statement letter from the Board of Directors of the Company stating that all UUS liabilities have been settled and that if there are claims and lawsuits in the future, they will be the responsibility of the Company.

Table 14: List of Documents for Requirements for Reporting the Opening of Branch Offices

No.	List of Documents	Description
1.	Decision letter from the GMS or Board of Directors proving approval of the opening of the Branch Office.<br>2. Proof of ownership or control of the office building showing the Branch Office address, along with photos of the exterior of the building, interior photos, and room layout.<br>3. Business plan for the Branch Office to be formed, including work systems and procedures for the first 3 (three) years, which must at least contain:<br>a. feasibility study regarding market opportunities and economic potential; and<br>b. target for granting Loans and steps taken to achieve the aforementioned targets.<br>4. Business plan for the Branch Office for the next 12 (twelve) months.

Table 15: List of Documents for Requirements for Reporting Changes to the Address of the Head Office and Branch Offices

No.	List of Documents	Description
1.	Data regarding the office address accompanied by supporting documents from the competent authority stating at least the name and address of the Company.<br>2. Proof of ownership or control of the office building showing the Branch Office address, along with photos of the exterior of the building, interior photos, and room layout.

Table 16: List of Documents for Requirements for Reporting the Closure of Branch Offices

No.	List of Documents	Description
1.	Reasons for the closure of the Branch Office.<br>2. Proof of announcement of the closure of the Branch Office through notice boards at the head office and Branch Office.<br>3. Proof of the settlement of the Company's liabilities to Customers.

Table 17: List of Documents for Requirements for Approval of Employing Foreign Workers

No.	List of Documents	Description
1.	Copy of the valid passport of the employed foreign worker.<br>2. Curriculum vitae of the employed foreign worker, accompanied by copies of documents reflecting their field of expertise.<br>3. Plan for education and training programs during the employment of the aforementioned foreign worker.<br>4. Placement plan in the organizational structure and field of responsibility of the foreign worker, accompanied by reasons for the use of foreign workers.

Table 18: List of Documents for Requirements for Approval of Ownership Changes

No.	List of Documents	Description
1.	For Companies in the form of a limited liability company:<br>list of shareholders including details of each share ownership up to the ultimate shareholder and/or beneficial owner, and a list of other companies owned by the shareholders.<br>For Companies in the form of a cooperative:<br>list of founding members including details of each founding capital deposit owned by members for Companies in the form of a cooperative.<br>Requirements in item 1 are adjusted to the legal form of the Company.<br>Ultimate shareholder is commonly known as the ultimate shareholder.<br>Beneficial owner is commonly known as the beneficial owner.<br>2. Draft minutes of the GMS deed approving the ownership change in the event that the ownership change requires GMS approval.<br>3. Draft deed of transfer of rights over shares, if there is a transfer of rights over shares other than due to sale and purchase.<br>4. Draft deed of share sale and purchase, if there is a share sale and purchase between shareholders.<br>5. Statement letter from the prospective shareholder stating that:<br>a. the source of funds for participation does not come from loans; and<br>b. the source of funds for participation does not come from money laundering, terrorism financing, financing of proliferation of weapons of mass destruction, and other financial crimes,<br>accompanied by an explanation of the flow of capital deposit funds of the prospective shareholder.<br>6. Data on prospective shareholders other than PSP or founding members as referred to in Table 1 item 5, if the ownership change results in new shareholders other than PSP.<br>Shareholders/founding members who have never been sentenced for proven criminal offenses within a certain period before nomination are calculated from when the individual has finished serving the criminal sentence until the date of the Company's letter to the Financial Services Authority.<br>7. Copy of tax notification letters for the last 2 (two) years before the capital participation is carried out and other documents showing financial capacity and source of funds:<br>a. for prospective individual shareholders, if the ownership change results in new shareholders and/or PSP who are individuals; or<br>b. for shareholders if they make additional Paid-up Capital.<br>8. Copy of the Company's financial report audited by a public accountant before the addition of Paid-up Capital, if the ownership change is caused by the addition of Paid-up Capital and will be carried out in the form of:<br>a. conversion/transfer of profit balance;<br>b. conversion/transfer of loans; and/or<br>c. bonus shares.<br>9. Proof of fund placement in an escrow account and/or time deposit in the name of the Company or shareholders/founding members, if the ownership change is carried out through cash deposits.<br>10. Copy of the Company's bank statement showing loan receipts, if the ownership change is carried out in the form of loan conversion.<br>11. Copy of the loan agreement document,
if the ownership change is carried out in the form of loan conversion.<br>12. Copy of the cooperation agreement between foreign legal entity shareholders and Indonesian shareholders as referred to in Table 1 item 13, for applications for approval of ownership changes involving new shareholders in the form of foreign legal entities.

Table 19: List of Documents for Requirements for Reporting the Implementation of the GMS Approving Ownership Changes

No.	List of Documents	Description
1.	Copy of the GMS minutes deed approving the ownership change.<br>2. Copy of the deed of ownership change.<br>3. Draft of the latest Articles of Association resulting from the ownership change.<br>4. Document stating that the Company has no tax debts from the competent authority.<br>5. Proof of announcement of the ownership change.

Table 20: List of Documents for Requirements for Reporting the Implementation of Ownership Changes

No.	List of Documents	Description
1.	Copy of the GMS minutes deed approving the ownership change, accompanied by a notice receipt letter from the competent authority.<br>2. Copy of the deed of transfer of rights over shares, if there is a transfer of rights over shares other than due to sale and purchase.<br>3. Copy of the sale and purchase deed, if there is a share sale and purchase between shareholders.<br>4. Copy of proof of deposit of additional Paid-up Capital, if the addition of Paid-up Capital is carried out in the form of cash deposits, in the form of:<br>a. company bank statement; and<br>b. copy of proof of placement of Paid-up Capital in the name of the respective Company on one of:<br>1) commercial banks or Sharia commercial banks in Indonesia for Pawnshop Companies; or<br>2) Sharia commercial banks or Sharia business units of commercial banks in Indonesia for Sharia Pawnshop Companies,<br>which are legalized by the bank.<br>5. Copy of the Company's financial report after the addition of Paid-up Capital signed by the Company's Board of Directors, if the ownership change is accompanied by the addition of Paid-up Capital carried out in the form of:<br>a. conversion/transfer of profit balance;<br>b. conversion/transfer of loans; and/or<br>c. bonus shares.

Table 21: List of Documents for Requirements for Approval of Changes to the Scope of Business Area

No.	List of Documents	Description
1.	Draft amendment to the Articles of Association.<br>2. Proof of approval of the change in the scope of business area from the GMS.<br>3. Work plan which must at least contain:<br>a. the Company's business activity plan and the steps to be taken to achieve the aforementioned plan; and<br>b. projected monthly financial position reports, income statements, and cash flow statements starting from when the Company carries out operational activities with the new scope of business area.

Table 22: List of Documents for Requirements for Reporting the Determination of the Scope of Business Area Resulting from Expansion

No.	List of Documents	Description
1.	Proof of approval of the change in the scope of business area from the GMS.<br>2. Copy of the provisions of legislation underlying the expansion of the area.

Table 23: List of Documents for Requirements for Reporting Changes to Specific Articles of Association

No.	List of Documents	Description
1.	For changes to the purpose and objectives as well as business activities of the Company:<br>a. amendment to the Articles of Association accompanied by proof of approval or receipt of a notice letter from the competent authority; and<br>b. example of a Pawn Certificate or Loan Agreement with Fiduciary Collateral to be used, if there is a change in business activities.<br>2. For changes to the Company's name:<br>a. amendment to the Articles of Association accompanied by proof of approval from the competent authority; and<br>b. copy of the tax identification number in the new name of the Company.<br>3. For changes to the location of the Company's head office:<br>a. amendment to the Articles of Association accompanied by proof of approval from the competent authority;<br>b. proof of ownership or control of the new office building; and<br>c. copy of the tax identification number in the new name of the Company.<br>4. For changes to the Company's status from closed to public limited liability company or vice versa:<br>amendment to the Articles of Association accompanied by proof of approval from the competent authority.

Table 24: List of Documents for Requirements for Reporting Changes to Members of the Board of Directors, Members of the Board of Commissioners, and/or Members of the DPS

No.	List of Documents	Description
1.	Copy of the GMS minutes deed regarding the appointment of members of the Board of Directors, members of the Board of Commissioners, and/or members of the DPS, accompanied by proof of the notice receipt letter from the competent authority.

Table 25: List of Documents for Requirements for Approval of Mergers or Consolidations

No.	List of Documents	Description
1.	Work plan for the implementation of the Merger or Consolidation, at least containing:<br>a. implementation steps;<br>b. implementation period for the Merger and Consolidation;<br>c. plan for notification to Customers and other stakeholders;<br>d. method for settling the rights of shareholders who do not agree to the takeover of the Company; and<br>e. method for settling the status of employees from the Company to be taken over.<br>2. Draft minutes of the GMS deed approving the Merger or Consolidation.<br>3. Draft deed of Merger or Consolidation.<br>The draft deed of Merger or Consolidation is prepared in accordance with the provisions of legislation regarding limited liability companies.<br>4. Draft deed of establishment of the Company resulting from the Consolidation.<br>5. List of shareholders including details of each share ownership up to the ultimate shareholder and/or beneficial owner, as well as a list of other companies owned by the shareholders of the Company resulting from the Merger or Consolidation.<br>6. Final financial report audited by a public accountant from the Company carrying out the Merger or Consolidation.<br>7. Pro forma financial data of the Company resulting from the Merger or Consolidation.<br>Pro forma financial data of the Company refers to the financial position report, income statement and other comprehensive income, statement of changes in equity, and financial ratios of the Company.<br>8. Work plan for the first 3 (three) years of the Company resulting from the Merger or Consolidation as referred to in Article Table 1 item 8.

No. Document List Description
9. Organizational structure of the resulting Company from the Merger or Consolidation.
10. Plan for the settlement of rights and obligations of the Company that will carry out the Merger or Consolidation without reducing customer rights.

Table 26: List of Documents for Reporting Requirements for the General Meeting of Shareholders Approving the Merger or Consolidation
No. Document List Description

Copy of the minutes of the General Meeting of Shareholders approving the Merger or Consolidation.
Copy of the Deed of Merger or Consolidation.
Draft deed of establishment of the resulting Company from the Merger or Consolidation.
Document stating that the Company has no tax debts to the competent authority.
Draft of the latest articles of association resulting from the Merger or Consolidation.
Proof of announcement of the Merger or Consolidation.

Table 27: List of Documents for Requirements for Issuance of UUS License for Companies Receiving the Merger
No. Document List Description

Copy of the UUS formation license previously held by the Company merging.

Table 28: List of Documents for Reporting Requirements for the Implementation of the Merger
No. Document List Description

Articles of association that have been approved by or notified to the competent authority.

Table 29: List of Documents for Requirements for Issuance of UUS License for the Resulting Company of the Consolidation
No. Document List Description

Copy of the UUS formation license previously held by the Company consolidating.

Table 30: List of Documents for Reporting Requirements for the Implementation of the Consolidation
No. Document List Description

Articles of association that have been ratified by the competent authority.

Table 31: List of Documents for Requirements for Written Approval
No. Document List Description

Management structure.
Copy of the articles of association and/or house rules.
Code of ethics.

Table 32: List of Documents for Reporting Requirements for Changes in Management, Articles of Association and/or House Rules, Code of Ethics, and/or Work Program
No. Document List Description

Management structure.
Photocopy of the articles of association and/or house rules.
Code of ethics.
Work program.

Table 33: List of Documents for Requirements for Approval of Revocation of Business License Based on Self-Request
No. Document List Description

Reasons for the cessation of business activities.
Minutes of the General Meeting of Shareholders regarding the plan to cease the Company's business activities.
Proof of tax settlement and other obligations to the state.
Proof of settlement of all Company obligations to Customers, creditors, employees, and other parties.
Latest financial report.

Table 34: List of Documents for Reporting the Implementation of Obligations After Approval of Revocation of Business License Based on Self-Request
No. Document List Description

Proof of implementation of the cessation of the Company's business activities.
Proof of implementation of the announcement.
Closing financial position report of the Company audited by a public accountant.
Statement letter from shareholders stating that all rights and obligations of the Company have been settled and that if there are claims and lawsuits in the future, they become the responsibility of the shareholders.

Table 35: List of Documents for Requirements for Approval of the Formation of the Liquidation Team
No. Document List Description

Photocopy of identity proof of prospective members of the Liquidation Team.
Curriculum vitae of prospective members of the Liquidation Team.
Statement from prospective members of the Liquidation Team that they are willing to carry out the Liquidation.

Table 36: List of Documents for Requirements for Approval of Extension of the Liquidation Implementation Period
No. Document List Description

Reasons for the extension of the liquidation implementation period.
Report on the progress of the Liquidation process up to the date of the request along with supporting evidence.
Work plan and budget during the extension of the liquidation implementation period.

Table 37: List of Documents for Reporting Requirements for Activities Providing Income Based on Commission
No. Document List Description

Description of product activities providing income based on commission to be marketed.
Description of the marketing mechanism.
Description of the rights and obligations of the parties.
Draft cooperation agreement.
Photocopy of permits from the competent authority, if any.

Table 38: List of Documents for Requirements for Approval of Other Business Activities
No. Document List Description

Other business activities to be carried out.
Prospect analysis of other business activities to be carried out.
Procedures and schemes of other business activities to be carried out.
Rights and obligations of the parties.
Risk mitigation for other business activities to be carried out.
Example of the agreement to be used.

Table 39: List of Documents for Requirements for Approval of Other Agreements
No. Document List Description

Fatwa and/or statement of Sharia compliance issued by an institution having authority in determining fatwas in the Sharia field.
Opinion from the Sharia Supervisory Board, if the fatwa and/or statement of Sharia compliance has not been issued.

Table 40: List of Documents for Reporting Requirements for Business Activities Utilizing Information Technology
No. Document List Description

Standard operating procedures related to business activities utilizing information technology.
List of human resources having expertise and/or background in the field of information technology.
Risk mitigation guidelines and reliable and secure information technology systems.

Table 41: List of Documents for Reporting Requirements for Plans to Issue Securities Through Public Offerings
No. Document List Description

Details of the plan for the use of funds to be obtained from the public offering.
History of previous security issuances (if any) containing at least information regarding:
a. size of security issuance; b. rating for debt securities;
c. term for debt securities; and
d. profile of debt security holders.
Projected financial reports.
Information regarding significant events and transactions after the date of the financial report audited by a public accountant.

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

Table 42: List of Documents for Reporting Requirements for Plans to Issue Securities Not Through Public Offerings
No. Document List Description
2. Example of debt security letters.
3. Details of the plan for the use of funds to be obtained.
4. Plan for the information memorandum to be offered, containing at least information regarding:
a. planned term for debt security offerings; b. name of debt securities;
c. principal funding amount;
d. funding term; e. interest rate (if any); f. collateral (if any); and g. taxation.
5. History of previous security issuances (if any) containing at least information regarding:
a. size of debt security issuance; b. rating of debt securities;
c. term of issuance of debt securities; and
d. buyer profile.
6. Projected financial reports
7. Plan for debt security rating agencies and monitoring agents to be used.

DEPUTY CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY OF THE
REPUBLIC OF INDONESIA AS A SUBSTITUTE
COMMISSIONER MEMBER OF THE
COMMISSIONERS BOARD OF THE
FINANCIAL SERVICES AUTHORITY OF THE
REPUBLIC OF INDONESIA,
MIRZA ADITYASWARA signed

OJK Regulation No. 39 of 2024 on Pawnshops

DEPUTY CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY OF THE
REPUBLIC OF INDONESIA AS A SUBSTITUTE
COMMISSIONER MEMBER OF THE
COMMISSIONERS BOARD OF THE
FINANCIAL SERVICES AUTHORITY OF THE
REPUBLIC OF INDONESIA,
MIRZA ADITYASWARA signed

Lineage: Amended

Timeline

Similar documents from other regulators

OJK Regulation No. 39 of 2024 on Pawnshops

DEPUTY CHAIRMAN OF THE COMMISSIONERS BOARD FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA AS A SUBSTITUTE COMMISSIONER MEMBER OF THE COMMISSIONERS BOARD OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA, MIRZA ADITYASWARA signed

Lineage: Amended

Timeline

Similar documents from other regulators

DEPUTY CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY OF THE
REPUBLIC OF INDONESIA AS A SUBSTITUTE
COMMISSIONER MEMBER OF THE
COMMISSIONERS BOARD OF THE
FINANCIAL SERVICES AUTHORITY OF THE
REPUBLIC OF INDONESIA,
MIRZA ADITYASWARA signed