POJK No. 19/POJK.04/2016: Guidelines for Investment Managers and Custodian Banks Managing Collective Investment Contracts for Real Estate Investment Funds

FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 19 /POJK.04/2016
CONCERNING
GUIDELINES FOR INVESTMENT MANAGERS AND CUSTODIAN BANKS MANAGING REAL ESTATE INVESTMENT FUNDS IN THE FORM OF COLLECTIVE INVESTMENT CONTRACTS BY THE GRACE OF THE ALMIGHTY GOD THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: a. that to support the development and growth of Real Estate Investment Funds and to enhance the international competitiveness of the Real Estate Investment Fund industry, it is necessary to improve the regulation of the management of Real Estate Investment Funds in the form of Collective Investment Contracts; b. that based on the considerations referred to in letter a, it is necessary to establish a Financial Services Authority Regulation concerning Guidelines for Investment Managers and Custodian Banks Managing Real Estate Investment Funds in the Form of Collective Investment Contracts; Recalling: 1. Law Number 8 of 1995 concerning Capital Markets (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608); FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA COPY COPY

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);
   DECIDING:
   Determining: FINANCIAL SERVICES AUTHABILITY REGULATION CONCERNING GUIDELINES FOR INVESTMENT MANAGERS AND CUSTODIAN BANKS MANAGING REAL ESTATE INVESTMENT FUNDS IN THE FORM OF COLLECTIVE INVESTMENT CONTRACTS.

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

1. Real Estate Investment Fund is a vehicle used to collect funds from investor public to be subsequently invested in Real Estate Assets, Real Estate Related Assets, and/or cash and cash equivalents.
2. Real Estate is land physically and buildings existing thereon.
3. Real Estate Related Assets are Real Estate Company Securities listed on the Stock Exchange and/or issued by Real Estate Companies.
4. Real Estate Company is a company whose main business activity is in the field of Real Estate.
5. Special Purpose Company is a Limited Liability Company whose shares are owned by a Real Estate Investment Fund in the form of a Collective Investment Contract by at least 99.9% (ninety-nine point nine percent) of the paid-up capital.
6. Appraiser is a Party that conducts asset/property valuation and is registered with the Financial Services Authority.

CHAPTER II
GUIDELINES FOR MANAGING REAL ESTATE INVESTMENT FUNDS IN THE FORM OF COLLECTIVE INVESTMENT CONTRACTS First Section Collective Investment Contract of Real Estate Investment Fund
Article 2
(1) Real Estate Investment Funds in the form of Collective Investment Contracts must contain information in the Collective Investment Contract and Prospectus regarding the rights, obligations, and authority of Related Parties, as well as the governance of management and administration of their investments. (2) Collective Investment Contracts of Real Estate Investment Funds in the form of Collective Investment Contracts must contain provisions regarding Collective Deposit at the Depository and Clearing Institution.

Second Section
Offering Real Estate Investment Funds
Article 3
Real Estate Investment Funds in the form of Collective Investment Contracts may conduct a Public Offering of their Participation Units to the investor public.
Article 4
In the event that Real Estate Investment Funds in the form of Collective Investment Contracts do not conduct a Public Offering, the Investment Manager must submit the Collective Investment Contract of the Real Estate Investment Fund in the form of Collective Investment Contract to the Financial Services Authority no later than 10 (ten) days since the date of signing the Collective Investment Contract of the Real Estate Investment Fund in the form of Collective Investment Contract made by a notary, accompanied by:
a. Documents used to conduct the offering; and b. Other agreements related to the Real Estate Investment Fund in the form of Collective Investment Contract.
Article 5
(1) Real Estate Investment Funds in the form of Collective Investment Contracts may list their Participation Units on the Stock Exchange.
(2) In the event that Real Estate Investment Funds in the form of Collective Investment Contracts do not list their Participation Units on the Stock Exchange, the Investment Manager of the Real Estate Investment Fund in the form of Collective Investment Contract must purchase Participation Units if Participation Unit holders sell them back.

Third Section
Investment Guidelines for Real Estate Investment Funds
Article 6
(1) Real Estate Investment Funds may invest their funds with or without using a Special Purpose Company.
(2) Real Estate Investment Funds in the form of Collective Investment Contracts may invest their funds in Real Estate through a Special Purpose Company formed solely for the interests of the Real Estate Investment Fund in the form of Collective Investment Contract. (3) In the event that Real Estate Investment Funds in the form of Collective Investment Contracts use a Special Purpose Company to conduct investments, such Special Purpose Company must distribute all investment results to the Real Estate Investment Fund in the form of Collective Investment Contract and other parties proportionally.
Article 7
(1) Real Estate Investment Funds in the form of Collective Investment Contracts may only invest in Real Estate Assets, Real Estate Related Assets within Indonesian territory, and/or cash and cash equivalents. (2) Further provisions regarding investments in Real Estate Assets, Real Estate Related Assets within Indonesian territory, and/or cash and cash equivalents as referred to in paragraph (1) shall be regulated by a Circular Letter of the Financial Services Authority.
Article 8
The assets of Real Estate Investment Funds in the form of Collective Investment Contracts are not part of the assets of the Investment Manager and Custodian Bank.
Article 9
Real Estate Investment Funds in the form of Collective Investment Contracts are prohibited from:
a. investing in vacant land or investing in properties that are still under construction, with the provision that activities in the construction stage do not include redecoration, repair, and renovation; b. lending and/or mortgaging Real Estate assets they own for the interests of other Parties;
c. engaging in the sale of Securities that are not yet owned;
d. engaging in the purchase of Securities on margin; and/or e. borrowing funds through the issuance of debt-like Securities, but may borrow funds without the issuance of debt-like Securities for the purpose of purchasing Real Estate assets with a total value of at most 45% (forty-five percent) of the total value of the Real Estate assets to be purchased.
Article 10
Investment Managers and Custodian Banks of Real Estate Investment Funds in the form of Collective Investment Contracts are prohibited from:
a. acting in their own name to conduct sales and purchases of Real Estate Assets, Real Estate Related Assets, and assets of other Real Estate Investment Funds in the form of Collective Investment Contracts; and/or b. stopping the management of Real Estate Investment Funds in the form of Collective Investment Contracts before a replacement Investment Manager or Custodian Bank is appointed, if the respective party resigns or transfers to another Investment Manager or Custodian Bank.
Article 11
Investment Managers managing Real Estate Investment Funds in the form of Collective Investment Contracts must ensure that:
a. Real Estate Investment Funds in the form of Collective Investment Contracts invest in:

1. Real Estate Assets by at least 50% (fifty percent) of Net Asset Value;
2. Real Estate Assets and Real Estate Related Assets by at least 80% (eighty percent) of Net Asset Value, with the provision that investments in Real Estate Assets are at least as referred to in number 1; and/or
3. cash and cash equivalents of no more than 20% (twenty percent) of Net Asset Value; and
   b. Assets that become the portfolio of Real Estate Investment Funds in the form of Collective Investment Contracts have strong legal basis, are valid, and are easily tradable.

Fourth Section
Acquisition and Transfer of Real Estate Assets of Real Estate Investment Funds in the Form of Collective Investment Contracts
Article 12
The acquisition and ownership of Real Estate by Real Estate Investment Funds in the form of Collective Investment Contracts must meet the following provisions:
a. The acquisition of Real Estate assets by Real Estate Investment Funds in the form of Collective Investment Contracts is the acquisition of ownership of Real Estate including rights attached thereto, interests, and benefits related to the ownership of the said assets by Real Estate Investment Funds in the form of Collective Investment Contracts. b. Real Estate assets cannot be transferred from the portfolio of Real Estate Investment Funds in the form of Collective Investment Contracts unless:

1. The Investment Manager and Custodian Bank have mutually agreed to the transfer; and
2. An appraisal has been obtained from an Appraiser.
   c. Real Estate Investment Funds in the form of Collective Investment Contracts are prohibited from transferring Real Estate assets at a price or value lower than 90% (ninety percent) of the price or value made by the Appraiser, and the date of the last appraisal by the Appraiser is not more than 6 (six) months before the date the Real Estate assets are transferred.
   Article 13
   Real Estate Investment Funds in the form of Collective Investment Contracts are prohibited from transferring Real Estate assets owned within a period of at least 2 (two) years, except:
   a. the ownership scheme clearly informs Participation Unit holders of the rational reasons for ownership of less than 2 (two) years; and b. more than 1/2 (one half) of Participation Unit holders of the total outstanding Participation Units of the Real Estate Investment Fund in the form of Collective Investment Contract have given their approval in the General Meeting of Participation Unit Holders of the Real Estate Investment Fund in the form of Collective Investment Contract.

Fifth Section
Asset Valuation in Real Estate Investment Funds in the Form of Collective Investment Contracts
Article 14
Valuation of Real Estate assets from Real Estate Investment Funds in the form of Collective Investment Contracts:
a. Investment Managers of Real Estate Investment Funds in the form of Collective Investment Contracts must conduct periodic valuations of Real Estate assets owned by Real Estate Investment Funds in the form of Collective Investment Contracts at least once every 1 (one) year. b. All valuations of Real Estate assets as referred to in letter a must be conducted by Appraisers appointed by the Investment Manager of the Real Estate Investment Fund in the form of Collective Investment Contract and approved by the Custodian Bank.
c. Appraisers conducting Real Estate asset valuations as referred to in letter b must:

1. be objective and independent; and
2. not be affiliated with:
   a) Real Estate Investment Funds in the form of Collective Investment Contracts, Investment Managers, Custodian Banks, and controlling Participation Unit holders of the said Real Estate Investment Funds in the form of Collective Investment Contracts; b) Capital Market Supporting Professions that provide services to Real Estate Investment Funds in the form of Collective Investment Contracts; c) Real Estate Companies conducting Real Estate transactions with Real Estate Investment Funds in the form of Collective Investment Contracts; d) Directors, Commissioners, and all employees of Parties as referred to in letter a), letter b), and letter c); and e) other parties related to Real Estate Investment Funds in the form of Collective Investment Contracts. d. Valuations of Real Estate assets from Real Estate Investment Funds in the form of Collective Investment Contracts as referred to in letter a must be reported to the Financial Services Authority and announced to the public at least in 1 (one) national circulation newspaper and the Investment Manager's Website no later than the end of the third month after the fiscal year of the Real Estate Investment Fund in the form of Collective Investment Contract ends.
   Article 15
   Valuation of Real Estate Related Assets from Real Estate Investment Funds in the form of Collective Investment Contracts must be conducted by Investment Managers with reference to laws and regulations in the Capital Market sector regulating Fair Market Value of Securities in Mutual Fund Portfolios and must be announced to the public through the Investment Manager's Website at least once every 1 (one) month.

Sixth Section
Information Disclosure of Real Estate Investment Funds in the Form of Collective Investment Contracts
Article 16
Investment Managers in good faith must submit information regarding Controlling Participation Unit Holders of Real Estate Investment Funds in the form of Collective Investment Contracts to the Financial Services Authority.
Article 17
Information Disclosure of Real Estate Investment Funds in the form of Collective Investment Contracts:
a. Investment Managers of Real Estate Investment Funds in the form of Collective Investment Contracts must create a Website as a medium for disclosing information. b. In the event that the name of Real Estate Investment Funds in the form of Collective Investment Contracts reflects specific Real Estate and/or Real Estate Related Assets, such Real Estate Investment Funds in the form of Collective Investment Contracts must invest at least 70% (seventy percent) of their Net Asset Value in the said Real Estate and/or Real Estate Related Assets.
c. Real Estate Investment Funds in the form of Collective Investment Contracts must submit Prospectuses with up-to-date information when offering Participation Units to the public.
d. Documents used in the offering of Participation Units of Real Estate Investment Funds in the form of Collective Investment Contracts must explain the rental returns obtained from Real Estate assets of Real Estate Investment Funds in the form of Collective Investment Contracts at the time the valuation report is made. e. Performance projections of Real Estate Investment Funds in the form of Collective Investment Contracts are permitted only if:

1. the assumptions underlying the projections and profit calculations are rational;
2. there is risk disclosure, including risks of financial information that is prospective and projections of returns that may not be achieved; and
3. Disclosure containing analysis regarding the differences between projected performance and actual performance (if any).
   f. In the event of material changes in the value of Real Estate assets of Real Estate Investment Funds in the form of Collective Investment Contracts, the Investment Manager must:
4. submit such changes to the Financial Services Authority; and
5. announce to the public through at least 1 (one) Indonesian language newspaper with national circulation and the Website of the Real Estate Investment Fund in the form of Collective Investment Contract;
   which includes the magnitude of the change and the causes of the change, no later than 2 (two) working days after the occurrence of the said change.

Seventh Section
Distribution of Profits of Real Estate Investment Funds in the Form of Collective Investment Contracts
Article 18
Real Estate Investment Funds in the form of Collective Investment Contracts must distribute profits to Participation Unit holders of Real Estate Investment Funds in the form of Collective Investment Contracts every year in an amount of at least 90% (ninety percent) of net profit after tax.

Eighth Section
Obligations of Investment Managers and Custodian Banks of Real Estate Investment Funds in the Form of Collective Investment Contracts Paragraph 1 Obligations of Investment Managers
Article 19
(1) Investment Managers managing Real Estate Investment Funds in the form of Collective Investment Contracts must:
a. separate the assets of Real Estate Investment Funds in the form of Collective Investment Contracts from the assets of the Investment Manager; b. conduct bookkeeping and reporting, including maintaining all important records related to financial reports and management of Real Estate Investment Funds in the form of Collective Investment Contracts separately from the bookkeeping and reporting of the Investment Manager itself, as determined by the Financial Services Authority;
c. appoint a replacement Custodian Bank when necessary;
d. manage Real Estate Investment Funds in the form of Collective Investment Contracts solely for the interests of Participation Unit holders of Real Estate Investment Funds in the form of Collective Investment Contracts, in accordance with applicable laws and regulations, Collective Investment Contracts, Prospectuses, and other related contracts regarding Real Estate Investment Funds in the form of Collective Investment Contracts; e. prepare and submit annual reports of Real Estate Investment Funds in the form of Collective Investment Contracts to Participation Unit holders of Real Estate Investment Funds in the form of Collective Investment Contracts and the Financial Services Authority; f. issue updated Prospectuses accompanied by the latest annual financial reports of Real Estate Investment Funds in the form of Collective Investment Contracts and submit such matters to the Financial Services Authority at the end of the third month after the annual financial reports end; g. formulate procedures and ensure that all funds from prospective Participation Unit holders of Real Estate Investment Funds in the form of Collective Investment Contracts are delivered to the Custodian Bank no later than the end of the next working day; h. have 2 (two) employees with expertise and at least 5 (five) years of experience in investment management;
i. guarantee that their systems generate information regarding daily operational activities, financial conditions, and assets underlying Real Estate Investment Funds in the form of Collective Investment Contracts; and
j. in good faith and full responsibility perform their duties as best as possible solely for the interests of Real Estate Investment Funds in the form of Collective Investment Contracts.
(2) In the event that Investment Managers of Real Estate Investment Funds in the form of Collective Investment Contracts do not fulfill their obligations as referred to in paragraph (1) letter j, then Investment Managers of Real Estate Investment Funds in the form of Collective Investment Contracts are responsible for all losses arising from their actions. Paragraph 2 Obligations of Custodian Banks
Article 20
(1) Custodian Banks administering Real Estate Investment Funds in the form of Collective Investment Contracts must:
a. separate the assets of Real Estate Investment Funds in the form of Collective Investment Contracts from the assets of the Custodian Bank; b. have systems and procedures in performing their duties and obligations;
c. conduct bookkeeping and reporting, including maintaining all important records related to financial reports and management of Real Estate Investment Funds in the form of Collective Investment Contracts separately from the bookkeeping and reporting of the Custodian Bank itself, as determined by the Financial Services Authority;
d. calculate the Net Asset Value of Real Estate Investment Funds in the form of Collective Investment Contracts at least once every 1 (one) month; e. record all changes in Real Estate assets and Real Estate Related Assets, number of Participation Units, withdrawals, management fees, interest income, or other income in accordance with Financial Services Authority regulations; f. settle transactions conducted by Real Estate Investment Funds in the form of Collective Investment Contracts in accordance with Investment Manager instructions; g. pay management fees and other fees charged on Real Estate assets and Real Estate Related Assets in accordance with the Collective Investment Contract of Real Estate Investment Funds in the form of Collective Investment Contracts; h. pay to Participation Unit holders of Real Estate Investment Funds in the form of Collective Investment Contracts every cash distribution related to Real Estate Investment Funds in the form of Collective Investment Contracts;
i. keep separate records showing all changes in the number of Participation Units of Real Estate Investment Funds in the form of Collective Investment Contracts owned by each Participation Unit holder, names, nationality, addresses, and other identities of the Participation Unit holders;
j. ensure that Participation Units are issued only upon receipt of funds from prospective Participation Unit holders; k. provide Collective Deposit and Custodian services regarding the assets of Real Estate Investment Funds in the form of Collective Investment Contracts;
l. prepare and submit activity reports to Investment Managers, the Financial Services Authority, and Participation Unit holders of Real Estate Investment Funds in the form of Collective Investment Contracts;
m. reject Investment Manager instructions in writing with a copy to the Financial Services Authority if such instructions clearly violate Capital Market laws and regulations and/or the Collective Investment Contract of Real Estate Investment Funds in the form of Collective Investment Contracts at the time received by the Custodian Bank; and n. in good faith and full responsibility perform their duties as best as possible solely for the interests of Real Estate Investment Funds in the form of Collective Investment Contracts. (2) In the event that Custodian Banks of Real Estate Investment Funds in the form of Collective Investment Contracts do not fulfill their obligations as referred to in paragraph (1) letter n, then Custodian Banks of Real Estate Investment Funds in the form of Collective Investment Contracts are responsible for all losses arising from their actions.

Ninth Section
General Meeting of Participation Unit Holders of Real Estate Investment Funds
Article 21
In the event that Real Estate Investment Funds in the form of Collective Investment Contracts conduct transactions with Parties involved in the formation and/or management of Real Estate Investment Funds in the form of Collective Investment Contracts, such transactions must be conducted transparently and fairly and must first obtain approval from the General Meeting of Participation Unit Holders through the following mechanisms:
a. Notification of the General Meeting of Participation Unit Holders is conducted no later than 14 (fourteen) days before the summons, and the summons is conducted no later than 14 (fourteen) days before the General Meeting of Participation Unit Holders through at least 1 (one) Indonesian language newspaper with national circulation; b. Summons for the General Meeting of Participation Unit Holders must state the place, time of implementation, procedures, and agenda of the meeting;
c. The General Meeting of Participation Unit Holders is declared valid if attended by more than 1/2 (one half) of all outstanding Participation Unit holders;
d. Decisions in the General Meeting of Participation Unit Holders

Participation is declared valid when approved by more than 1/2 (one half) of those present; e. Before the notification of the General Meeting of Participating Unit Holders plan is published in a newspaper, the Investment Manager must first submit the agenda of the meeting clearly and in detail to the Financial Services Authority no later than 7 (seven) days before the notification; f. In the event that the first General Meeting of Participating Unit Holders fails to be held or fails to make a decision, a second General Meeting of Participating Unit Holders shall be held; g. The call for the second General Meeting of Participating Unit Holders must be made no later than 7 (seven) days before the second General Meeting of Participating Unit Holders is held, stating that the first General Meeting of Participating Unit Holders has been held but did not reach a quorum or could not make a decision; h. The second General Meeting of Participating Unit Holders shall be held no earlier than 10 (ten) days and no later than 21 (twenty-one) days from the first General Meeting of Participating Unit Holders;
i. The second General Meeting of Participating Unit Holders is valid and entitled to make decisions if attended by Participating Unit Holders representing at least 1/3 (one third) of the total outstanding Participating Units; and
j. In the event that the second General Meeting of Participating Unit Holders fails to be held or fails to make a decision, the Investment Manager may hold a third General Meeting of Participating Unit Holders with quorum for attendance, quorum for decision-making, call, and time of holding the third General Meeting of Participating Unit Holders approved by the Financial Services Authority.

CHAPTER III
REPORTING
Article 22
(1) Investment Managers of Real Estate Investment Funds in the form of Collective Investment Contracts must submit annual reports of Real Estate Investment Funds in the form of Collective Investment Contracts no later than at the end of the third month after the date the annual financial report of the Real Estate Investment Fund in the form of Collective Investment Contract ends. (2) The annual report of Real Estate Investment Funds in the form of Collective Investment Contracts must at least contain:
a. financial reports that have been audited by an Accountant registered with the Financial Services Authority; b. valuation reports from a Valuer;
c. valuation reports on Securities related to Real Estate and cash of Real Estate Investment Funds in the form of Collective Investment Contracts; and
d. a performance table of Real Estate Investment Funds in the form of Collective Investment Contracts.
Article 23
In the event that the deadline for submission to the Financial Services Authority as referred to in Article 4, Article 14 letter d, Article 19 paragraph (1) letter f, and Article 22 paragraph (1) falls on a holiday, the submission must be made no later than on the next 1 (one) working day.

CHAPTER IV
SANCTION PROVISIONS
Article 24
(1) Without prejudice to criminal provisions in the Capital Market sector, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties that cause the violation to occur, in the form of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction on business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and g. cancellation of registration.
(2) Administrative sanctions as referred to in paragraph (1) letter b, letter c, letter d, or letter e may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of fines as referred to in paragraph (1) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (1) letter c, letter d, or letter e.
Article 25
In addition to administrative sanctions as referred to in Article 24 paragraph (1), the Financial Services Authority may impose additional administrative sanctions and/or take certain actions against any party that violates the provisions of this Financial Services Authority Regulation.
Article 26
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 24 paragraph (1) as well as additional administrative sanctions and/or certain actions as referred to in Article 25 to the public.

CHAPTER VIII
CLOSING PROVISIONS
Article 27
At the time this Financial Services Authority Regulation comes into force, the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number: KEP-425/BL/2007 dated December 18, 2007 concerning Guidelines for Investment Managers and Custodian Banks Managing Real Estate Investment Funds in the Form of Collective Investment Contracts along with Regulation Number IX.M.1 which is its appendix, is repealed and declared invalid.
Article 28
This Financial Services Authority Regulation comes into force on the date of its promulgation.

In order that everyone knows it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Determined in Jakarta on March 16, 2016
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY, signature
MULIAMAN D. HADAD
Promulgated in Jakarta on April 4, 2016
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signature
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 61 Copy in accordance with the original Director of Law 1 Department of Law sign Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 19 /POJK.04/2016
CONCERNING
GUIDELINES FOR INVESTMENT MANAGERS AND CUSTODIAN BANKS MANAGING REAL ESTATE INVESTMENT FUNDS IN THE FORM OF COLLECTIVE INVESTMENT CONTRACTS
I. GENERAL
Real Estate Investment Funds are containers used to gather funds from investor public for subsequent investment in Real Estate Assets, Securities Related to Real Estate, and/or cash and cash equivalents.
Since the issuance of regulations related to Real Estate Investment Funds until now, the development of Real Estate Investment Funds in Indonesia has not been significant enough and tends to be stagnant. In relation to this matter, in order to further increase the growth of Real Estate Investment Funds in accordance with the needs of the Capital Market, it is necessary to improve legislation in the Capital Market sector regulating Real Estate Investment Funds, specifically Regulation Number IX.M.1 concerning Guidelines for Investment Managers and Custodian Banks Managing Real Estate Investment Funds in the Form of Collective Investment Contracts.
II. ARTICLE BY ARTICLE
Article 1
Is clear enough.
Article 2
Is clear enough.
Article 3
Is clear enough.

Article 4
Is clear enough.
Article 5
Is clear enough.
Article 6
Is clear enough.
Article 7
Is clear enough.
Article 8
Is clear enough.
Article 9
Letter a
In practice, the "improvement" referred to is also known as retrofitting.
Letter b
Is clear enough.
Letter c
In practice, the "sale of Securities not yet owned" referred to is also known as short sale.
Letter d
Is clear enough.
Letter e
Is clear enough.
Article 10
Is clear enough.
Article 11
Is clear enough.
Article 12

Is clear enough.
Article 13
Is clear enough.
Article 14
Is clear enough.
Article 15
At the time this Financial Services Authority Regulation comes into force, the legislation in the Capital Market sector regulating the Fair Market Value of Securities in the Mutual Fund Portfolio that applies is Regulation Number IV.C.2, Appendix of the Decision of the Chairman of the Capital Market Supervisory Board and Financial Institutions Number: KEP-367/BL/2012 dated July 9, 2012 concerning the Fair Market Value of Securities in the Mutual Fund Portfolio.
Article 16
Is clear enough.
Article 17
Letter a
Is clear enough.
Letter b
Is clear enough.
Letter c
Is clear enough.
Letter d
In practice, the "rental yield" referred to is also known as rental yield.
Letter e
Is clear enough.
Letter f
Is clear enough.
Article 18
Is clear enough.

Article 19
Paragraph (1)
Letter a
Is clear enough.
Letter b
Is clear enough.
Letter c
Is clear enough.
Letter d
Is clear enough.
Letter e
Is clear enough.
Letter f
Is clear enough.
Letter g
Is clear enough.
Letter h
Is clear enough.
Letter i
In practice, the "underlying asset" referred to is also known as underlying asset.
Letter j
Is clear enough.
Paragraph (2)
Is clear enough.
Article 20
Is clear enough.
Article 21
Is clear enough.
Article 22
Paragraph (1)
Is clear enough.

Paragraph (2)
Letter a
Is clear enough.
Letter b
Is clear enough.
Letter c
Is clear enough.
Letter d
The performance table of Real Estate Investment Funds in the form of Collective Investment Contracts referred to includes among others total Net Asset Value at the end of each year and Net Asset Value per Participating Unit at the end of each year.
Article 23
Is clear enough.
Article 24
Is clear enough.
Article 25
Is clear enough.
Article 26
Is clear enough.
Article 27
Is clear enough.
Article 28
Is clear enough.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5867