FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 25 /POJK.03/2016

CONCERNING

AMENDMENTS TO THE FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 27/POJK.03/2015 CONCERNING BANK BUSINESS ACTIVITIES INVOLVING

TRUSTS (TRUST)

BY THE GRACE OF GOD THE ALMIGHTY,

THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that the issuance of Law Number 11 of 2016 concerning Tax Amnesty requires policies to support the inflow of repatriation funds through the financial services industry; b. that in order to support the inflow of repatriation funds into the banking sector, a legal basis is needed for Banks to accept Settlor clients in both corporate and individual forms;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Amendments to the Financial Services Authority Regulation Number 27/POJK.03/2015 concerning Bank Business Activities Involving Trusts (Trust);

THE FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

COPY

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Recalling:

1. Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1992 Number 31, Supplement to the State Gazette of the Republic of Indonesia Number 3472) as amended by Law Number 10 of 1998 (State Gazette of the Republic of Indonesia Year 1998 Number 182, Supplement to the State Gazette of the Republic of Indonesia Number 3790);
2. Law Number 21 of 2008 concerning Sharia Banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette of the Republic of Indonesia Number 4867);
3. 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);
4. Law Number 11 of 2016 concerning Tax Amnesty (State Gazette of the Republic of Indonesia Year 2016 Number 131, Supplement to the State Gazette of the Republic of Indonesia Number 5899);
5. Financial Services Authority Regulation Number 27/POJK.03/2015 concerning Bank Business Activities Involving Trusts (Trust) (State Gazette of the Republic of Indonesia Year 2015 Number 293, Supplement to the State Gazette of the Republic of Indonesia Number 5775);

DECIDING:

To establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING AMENDMENTS TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 27/POJK.03/2015 CONCERNING BANK BUSINESS ACTIVITIES INVOLVING TRUSTS (TRUST).

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Article I

The provisions of Article 20 paragraph (1) letter a in the Financial Services Authority Regulation Number 27/POJK.03/2015 concerning Bank Business Activities Involving Trusts (Trust) (State Gazette of the Republic of Indonesia Year 2015 Number 293, Supplement to the State Gazette of the Republic of Indonesia Number 5775) are amended to read as follows:

Article 20
(1) Settlor must meet the criteria:
a. corporate client or individual client; and b. not being an affiliated party with the Bank.
(2) Settlor may act as Beneficiary.

Article II

This Financial Services Authority Regulation shall come into force on the date of its enactment.

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In order that everyone knows it, it is ordered to publish this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on July 14, 2016

CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY,

signed
MULIAMAN D. HADAD

Enacted in Jakarta on July 15, 2016

MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,

signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 139

Copy matches the original
Director of Law 1
Department of Law

signed
Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 25 /POJK.03/2016
CONCERNING
AMENDMENTS TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 27/POJK.03/2015 CONCERNING BANK BUSINESS ACTIVITIES INVOLVING TRUSTS (TRUST)

I. GENERAL

In connection with the issuance of the Law of the Republic of Indonesia Number 11 of 2016 concerning Tax Amnesty, which aims to increase state revenue, encourage economic growth, and increase awareness and compliance with tax obligations of the Indonesian people, supporting policies are needed for the implementation of the aforementioned Law.

One form of supporting policy in the financial services industry to encourage the inflow of repatriation funds and place them in banking, among others, through trust activities.

In connection with the above, in order to provide a legal basis for the banking industry to accept Settlor clients in both corporate and individual forms, improvements are needed to the Financial Services Authority Regulation Number 27/POJK.03/2015 concerning Bank Business Activities Involving Trusts (Trust).

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II. ARTICLE BY ARTICLE

Article I
Article 20
Paragraph (1)
Letter a
Sufficiently clear.
Letter b
The term "affiliated party" refers to affiliated parties as referred to in the Law on Banking and the Law on Sharia Banking.
Paragraph (2)
Sufficiently clear.
Article II
Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5902