OJK Regulation No. 49 of 2024 on Supervision, Supervision Status Determination, and Follow-up for Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions

COPY PERATURAN OTORITAS JASA KEUANGAN REPUBLIK INDONESIA NOMOR 49 TAHUN 2024 TENTANG PENGAWASAN, PENETAPAN STATUS PENGAWASAN, DAN TINDAK LANJUT PENGAWASAN LEMBAGA PEMBIAYAAN, PERUSAHAAN MODAL VENTURA, LEMBAGA KEUANGAN MIKRO, DAN LEMBAGA JASA KEUANGAN LAINNYA

WITH THE FEAR OF GOD THE MOST HIGH

THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering: a. that in order to implement the provisions of Article 128 paragraph (4) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, Article 32 of Law Number 1 of 2013 concerning Microfinance Institutions as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, and Article 40 of Law Number 2 of 2009 concerning the Indonesian Export Financing Agency as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, regulations regarding supervision, determination of supervision status, and follow-up of supervision in the sector of financing institutions, venture capital companies, microfinance institutions, and other financial service institutions are needed; b. that regulations regarding supervision, determination of supervision status, and follow-up of supervision in the sector of financing institutions, venture capital companies, microfinance institutions, and other financial service institutions previously regulated in Financial Services Authority Regulation Number 11/POJK.05/2014 concerning Direct Examination of Non-Bank Financial Service Institutions as amended several times, lastly with Financial Services Authority Regulation Number 30/POJK.05/2020 concerning the Second Amendment to Financial Services Authority Regulation Number 11/POJK.05/2014 concerning Direct Examination of Non-Bank Financial Service Institutions, Financial Services Authority Regulation Number 14/POJK.05/2014 concerning Guidance and Supervision of Microfinance Institutions, and Financial Services Authority Regulation Number 9/POJK.05/2021 concerning Determination of Status and Follow-up of Supervision of Non-Bank Financial Service Institutions, need to be adjusted to the development of the financing institution, venture capital company, microfinance institution, and other financial service institution industry; c. that based on considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Supervision, Determination of Supervision Status, and Follow-up of Supervision of Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions;

Recalling:

1. Law Number 2 of 2009 concerning the Indonesian Export Financing Agency (State Gazette of the Republic of Indonesia Year 2009 Number 2, Supplement to the State Gazette of the Republic of Indonesia Number 4957) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
3. Law Number 1 of 2013 concerning Microfinance Institutions (State Gazette of the Republic of Indonesia Year 2013 Number 12, Supplement to the State Gazette of the Republic of Indonesia Number 5394) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
4. Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);

DECIDES: Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING SUPERVISION, DETERMINATION OF SUPERVISION STATUS, AND FOLLOW-UP OF SUPERVISION OF FINANCING INSTITUTIONS, VENTURE CAPITAL COMPANIES, MICROFINANCE INSTITUTIONS, AND OTHER FINANCIAL SERVICE INSTITUTIONS.

CHAPTER I GENERAL PROVISIONS

Article 1 In this Financial Services Authority Regulation, the following definitions apply:

1. Financing Institutions, Venture Capital Companies, Microfinance Institutions, and Other Financial Service Institutions which are hereinafter referred to as PVML are financial service institutions comprising financing companies, infrastructure financing companies, venture capital companies, microfinance institutions, pawnshop companies, information technology-based joint financing service providers, the Indonesian Export Financing Agency, secondary housing financing companies, PT Permodalan Nasional Madani, Badan Pengelola Tabungan Perumahan Rakyat, and PT Sarana Multi Infrastruktur (Persero), and other financial service institutions.
2. Financing Company is a legal entity that conducts financing activities for goods and/or services to the public, including those conducting business activities based on Sharia principles.
3. Infrastructure Financing Company is a legal entity specifically established to conduct financing activities in the form of providing funds for infrastructure projects and/or carrying out other activities or facilities in support of infrastructure financing, including conducting business activities based on Sharia principles.
4. Venture Capital Company is a business entity that conducts venture capital business activities, including those conducting business activities based on Sharia principles.
5. Microfinance Institution is a financial institution specifically established to provide business development services and community empowerment, either through loans or financing for micro-scale businesses to members and the public, managing deposits, or providing business development consulting services that are not solely profit-oriented, including those conducting business activities based on Sharia principles.
6. Pawnshop Company is a legal entity that conducts business activities providing loans secured by movable assets, including those conducting business activities based on Sharia principles.
7. Information Technology-Based Joint Financing Service Provider which is hereinafter referred to as LPBBTI Provider is an Indonesian legal entity that provides, manages, and operates the provision of financial service services to match fund providers with fund recipients in conducting financing, either conventionally or based on Sharia principles, directly through an electronic system using the internet.
8. Secondary Housing Financing Company which is hereinafter abbreviated as PPSP is a company established by the Government of the Republic of Indonesia to conduct secondary housing financing and other activities related to the development of the secondary housing financing market.
9. Indonesian Export Financing Agency which is hereinafter abbreviated as LPEI is the Indonesian Export Financing Agency, as referred to in the Law concerning the Indonesian Export Financing Agency.
10. PT Permodalan Nasional Madani which is hereinafter referred to as PT PNM is a company established based on Government Regulation of the Republic of Indonesia Number 38 of 1999 concerning State Capital Participation for the Establishment of State-Owned Limited Liability Companies (Persero) in the context of Cooperatives, Small and Medium Enterprises Development.
11. Badan Pengelola Tabungan Perumahan Rakyat which is hereinafter referred to as BP Tapera is a legal entity formed to manage people's housing savings.
12. PT Sarana Multi Infrastruktur (Persero) which is hereinafter referred to as PT SMI (Persero) is a state-owned business entity established based on Government Regulation Number 66 of 2007 concerning State Capital Participation for the Establishment of State-Owned Limited Liability Companies (Persero) in the Field of Infrastructure Financing as last amended by Government Regulation Number 53 of 2020 concerning the Second Amendment to Government Regulation Number 66 of 2007 concerning State Capital Participation for the Establishment of State-Owned Limited Liability Companies (Persero) in the Field of Infrastructure Financing.
13. Supervision is the activity of measurement, assessment, re-evaluation, and/or other activities conducted against PVML based on statutory regulations.
14. Examination is a series of activities to search for, collect, process, and evaluate data and/or information, and to assess and provide conclusions regarding the business operations of PVML.
15. Board of Directors is the PVML organ authorized and fully responsible for managing PVML for the benefit of PVML, in accordance with the purpose and objectives of PVML, and representing PVML, both inside and outside of court, in accordance with the articles of association for PVML in the form of a limited liability company, or equivalent to the Board of Directors for PVML in the form of a cooperative legal entity, LPEI, or BP Tapera.
16. Board of Commissioners is the PVML 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 PVML in the form of a limited liability company legal entity, or equivalent to the Board of Commissioners for PVML in the form of a cooperative legal entity, LPEI, or BP Tapera.
17. Sharia Supervisory Board which is hereinafter abbreviated as DPS is the party having the task and function of supervising the implementation of PVML activities to ensure compliance with Sharia principles.
18. Controlling Shareholder which is hereinafter abbreviated as PSP is a legal entity, individual, and/or business group that directly or indirectly owns shares or equivalent to shares in PVML and/or has the ability to control the aforementioned PVML.
19. Health Level is the result of assessing the condition of PVML conducted against PVML risks and performance.
20. Composite Rating is the final rating result of the Health Level assessment of PVML.

CHAPTER II SUPERVISION

First Section General

Article 2 (1) The Financial Services Authority conducts Supervision against PVML. (2) Supervision against PVML as referred to in paragraph (1) is conducted through: a. Indirect Supervision; and b. Direct Supervision.

Second Section Indirect Supervision

Article 3 (1) Indirect Supervision as referred to in Article 2 paragraph (2) letter a is conducted through monitoring, research, analysis, and evaluation of: a. reports submitted by PVML to the Financial Services Authority; b. reports submitted by other parties to the Financial Services Authority; c. Supervision data; and d. other relevant information obtained by the Financial Services Authority. (2) The Financial Services Authority may request PVML to submit specific information and/or documents for Indirect Supervision of PVML. (3) PVML is required to submit specific information and/or documents upon request by the Financial Services Authority as referred to in paragraph (2).

Third Section Direct Supervision

Article 4 (1) Direct Supervision as referred to in Article 2 paragraph (2) letter b can be conducted through: a. direct face-to-face meetings; and/or b. electronic face-to-face meetings. (2) Direct Supervision as referred to in paragraph (1) is conducted by the Financial Services Authority through Examination of PVML. (3) In conducting Examination as referred to in paragraph (2), the Financial Services Authority may conduct Examination against: a. shareholders or equivalents in PVML; b. subsidiaries of PVML; and/or c. parties other than shareholders or equivalents as referred to in letter a and/or subsidiaries of PVML as referred to in letter b that conduct transactions with PVML. (4) Examination as referred to in paragraph (2) aims to: a. obtain a comprehensive picture of the business development and financial condition of PVML, including detecting matters that may affect the Health Level or continuity of PVML's business; b. obtain assurance regarding the truthfulness of reports submitted by PVML to the Financial Services Authority, reports published to the public, and other information; c. ensure PVML's compliance with Financial Services Authority Regulations, other statutory regulations, and guidelines, provisions, and work procedures established by PVML; and d. investigate the truthfulness of alleged criminal acts in the field of PVML. (5) Examination as referred to in paragraph (2) can be implemented at the PVML office, at other places related to PVML either domestically or abroad, and/or at the Financial Services Authority office.

Paragraph 1 Scope and Frequency of Examination

Article 5 (1) The Scope of Examination conducted by the Financial Services Authority covers all aspects or specific aspects of PVML's business activities. (2) Determination of the Scope of Examination as referred to in paragraph (1) is established by the Financial Services Authority based on: a. risk-based Supervision for PVML that has implemented risk-based Supervision; or b. Examination plans for PVML that has not yet implemented risk-based Supervision.

Article 6 (1) Examination of PVML is conducted by the Financial Services Authority through: a. Periodic Examination; b. Ad hoc Examination; and/or c. Special Examination for alleged criminal acts in the field of PVML. (2) The Financial Services Authority may establish Periodic Examination as referred to in paragraph (1) letter a with a frequency of 1 (one) time in 1 (one) year. (3) The frequency of Periodic Examination as referred to in paragraph (2) is determined based on the supervisor's assessment of the Health Level condition or factors impacting PVML's business activities.

Paragraph 2 Examination Team

Article 7 (1) Examination as referred to in Article 6 paragraph (1) is conducted by an examination team. (2) The examination team as referred to in paragraph (1) consists of at least 2 (two) persons. (3) The examination team as referred to in paragraph (1) consists of: a. Financial Services Authority employees assigned to conduct Examination; b. other parties appointed by the Financial Services Authority; or c. a combination of Financial Services Authority employees and other parties appointed by the Financial Services Authority. (4) In carrying out Examination, the examination team keeps confidential data and/or information obtained during the Examination from unauthorized parties.

Article 8 The examination team from other parties as referred to in Article 7 paragraph (3) letter b must fulfill the following provisions: a. not included in the list of disapproved parties as referred to in statutory regulations concerning assessment of competence and propriety; b. not an affiliated party against the object being examined; c. having good mental attitude, ethics, and high professional responsibility; d. being independent, honest, and objective; e. competent in their field and understanding statutory regulations in the field of PVML and other statutory regulations; and f. continuously participating in professional education programs in their respective fields.

Article 9 (1) The Financial Services Authority may appoint public accountants, actuaries, and/or independent appraisers as other parties appointed by the Financial Services Authority to become the examination team as referred to in Article 7 paragraph (3) letter b. (2) Public accountants, actuaries, and/or independent appraisers as referred to in paragraph (1) must be registered with the Financial Services Authority.

Article 10 (1) The Financial Services Authority issues a work order to other parties appointed to conduct Examination as referred to in Article 9 paragraph (1). (2) Other parties appointed to conduct Examination as referred to in paragraph (1) are required to conduct Examination in accordance with the work order and the terms of reference established by the Financial Services Authority, which are an inseparable part of the work order.

Paragraph 3 PVML Obligations

Article 11 (1) PVML and/or related parties subject to Examination by the Financial Services Authority as referred to in Article 4 paragraph (3) are required to: a. fulfill the examination team's request to provide or lend books, files, notes, dispositions, memorandums, other documents needed, electronic data, including copies and other items considered necessary to support Supervision; b. provide statements and explanations to the examination team based on actual facts and conditions related to the aspects being examined, both orally and in writing; c. give the examination team the opportunity to investigate the existence and use of all data/documents related to the aspects being examined; d. present third parties upon the examination team's request to provide data, documents, and/or statements to the examiners related to the Examination; e. provide access to examiners to enter places or rooms deemed necessary; and/or f. fulfill other requests from the examination team to support the Examination process of PVML and related parties. (2) PVML and/or related parties subject to Examination by the Financial Services Authority as referred to in Article 4 paragraph (3) are required to submit books, files, notes, dispositions, memorandums, other documents needed, electronic data, including copies and other items considered necessary to support Supervision as referred to in paragraph (1) letter a within the timeframe established by the Financial Services Authority. (3) PVML and/or related parties subject to Examination by the Financial Services Authority as referred to in Article 4 paragraph (3) are prohibited from hindering/blocking the Examination process either directly or indirectly.

Paragraph 4 Examination Procedures

Article 12 (1) Examination is conducted by the examination team based on an Examination order issued by the Financial Services Authority. (2) Before conducting Examination as referred to in paragraph (1), the Financial Services Authority submits an Examination notification letter to PVML. (3) The Examination notification letter as referred to in paragraph (2) contains information: a. composition of the examination team; b. scope of Examination; c. objectives of Examination; d. documents required for Examination; and e. deadline for submission of documents to the examiners. (4) The Financial Services Authority may submit the Examination notification letter to PVML on the same day as the implementation of Examination, if notification prior to the implementation of Examination is suspected to: a. complicate or hinder the Examination process; b. obscure the actual situation; and/or c. hide or eliminate data, statements, or reports required for the Examination.

Article 13 (1) In the process of Periodic Examination and Ad hoc Examination, the examination team confirms findings to PVML and/or related parties as referred to in Article 4 paragraph (3). (2) Before Periodic Examination and Ad hoc Examination end, the examination team conducts a discussion first with PVML regarding findings in the Examination. (3) After discussion with PVML as referred to in paragraph (2), the examination team holds a meeting with the Board of Directors regarding the Examination results and follow-up of the Examination results. (4) The results of the meeting as referred to in paragraph (3) are recorded in a minutes document containing the Examination results and recommendations or follow-up, signed by the examination team and the Board of Directors and/or leaders of related parties. (5) In the event that the Board of Directors and/or leaders of related parties refuse to sign the minutes document as referred to in paragraph (4), the examination team establishes the minutes document without being signed by the Board of Directors and/or leaders of related parties. (6) In the event that the Board of Directors and/or leaders of related parties refuse to sign the minutes document as referred to in paragraph (5), the refusal must be accompanied by reasons. (7) The Examination timeframe may be extended according to needs and the complexity of the Examination.

Article 14 (1) After discussion with the Board of Directors as referred to in Article 13 paragraph (3), the examination team compiles the Examination results report. (2) The Examination results report as referred to in paragraph (1) is confidential. (3) The Financial Services Authority submits the Examination results report as referred to in paragraph (1) to the Board of Directors, Board of Commissioners, and/or leaders of related parties no later than 15 (fifteen) working days after the Examination results report is established. (4) The use of the Examination results report as referred to in paragraph (1) by parties outside the examined PVML must be consulted and obtain prior approval from the Financial Services Authority, unless otherwise regulated based on statutory regulations.

Paragraph 5 Follow-up of Examination Results

Article 15 (1) PVML is required to carry out follow-up in accordance with recommendations contained in the Examination results report as referred to in Article 14 paragraph (3). (2) PVML is required to report the implementation of follow-up as referred to in paragraph (1) to the Financial Services Authority within a timeframe in accordance with the Examination results report as referred to in Article 14 paragraph (3). (3) In the event that the Examination results report does not specifically mention the deadline for this reporting obligation, PVML is required to submit a report on the implementation of Examination follow-up at least every month. (4) The obligation to report the implementation of follow-up as referred to in paragraph (2) or paragraph (3) ends, if the Financial Services Authority assesses that PVML has implemented the follow-up as referred to in paragraph (1). (5) The Financial Services Authority's assessment as referred to in paragraph (4) is communicated to PVML via letter.

Paragraph 6 Examination by Foreign Parties

Article 16 (1) Examination of PVML whose shares are partly owned by foreign financial institutions, conducted by examiners from financial service sector supervisory authorities of other countries, can only be conducted after obtaining written permission from the Financial Services Authority. (2) The application for written permission as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 14 (fourteen) working days before the Examination is conducted. (3) Approval or rejection of the permission application as referred to in paragraph (2) is given no later than 7 (seven) working days since the application letter is received by the Financial Services Authority. (4) The Financial Services Authority may request the examiner as referred to in paragraph (1) to, in the Examination, simultaneously examine matters needed by the Financial Services Authority. (5) The Financial Services Authority...

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