POJK on Amendments to the Financial Services Authority Regulation on Procedures for Collecting Administrative Fines in the Financial Services Sector

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 7/POJK.04/2015
CONCERNING
AMENDMENTS TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 4/POJK.04/2014 CONCERNING PROCEDURES FOR COLLECTING ADMINISTRATIVE FINES IN THE FINANCIAL SERVICES SECTOR BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS' COUNCIL OF THE FINANCIAL SERVICES AUTHORITY, Considering: that in order to increase the effectiveness of the collection of Administrative Fines in the banking sector and the categorization of non-performing loans of the Financial Services Authority originating from Administrative Fines, it is necessary to establish a Financial Services Authority Regulation on Amendments to the Financial Services Authority Regulation Number 4/POJK.04/2014 Concerning Procedures for Collecting Administrative Fines in the Financial Services Sector; 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);
2. Financial Services Authority Regulation Number 4/POJK.04/2014 Concerning Procedures for Collecting Administrative Fines in the Financial Services Sector (State Gazette of the Republic of Indonesia Year 2014 Number 67, Supplement to the State Gazette of the Republic of Indonesia Number 5522);
RESOLVES...

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RESOLVES:
Establish: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING AMENDMENTS TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 4/POJK.04/2014 CONCERNING PROCEDURES FOR COLLECTING ADMINISTRATIVE FINES IN THE FINANCIAL SERVICES SECTOR.
Article I
Several provisions in the Financial Services Authority Regulation Number 4/POJK.04/2014 Concerning Procedures for Collecting Administrative Fines in the Financial Services Sector (State Gazette of the Republic of Indonesia Year 2014 Number 67, Supplement to the State Gazette of the Republic of Indonesia Number 5522) are amended as follows:

1. The provision of Article 4 paragraph (2) is deleted, so that Article 4 reads as follows:
   Article 4
   (1) The implementation of payment as referred to in Article 3 letter a must be carried out at the latest 30 (thirty) days after the Administrative Fine Letter is established.
   (2) Deleted.
2. The provision of Article 5 paragraph (1) is amended and Article 5 paragraph (2) is deleted, so that Article 5 reads as follows:
   Article 5
   (1) In the event that Any Person subject to an Administrative Fine submits an objection request to the OJK, the obligation to pay the Administrative Fine is temporarily suspended from the receipt of the objection request letter until the decision on the objection request is established. (2) Deleted. (3) In the event that part or all of the objections as referred to in paragraph (1) are rejected in whole, or accepted in whole or in part but still give rise to an obligation to pay fines for...

-3- for the objector, the objector concerned must pay the Administrative Fine according to the value established in the OJK response letter within a period of at the latest 30 (thirty) days after the OJK response letter to the objection request is established.
3. The provision of Article 9 is amended so that it reads as follows:
Article 9
In the event that Administrative Fines and/or Interest are not settled within a period of 1 (one) year after the end of the payment period established in the Administrative Fine Letter or the OJK response letter to the objection request, then the OJK categorizes the Administrative Fines and/or Interest as non-performing loans.
Article II
This OJK Regulation shall come into force on the date of its promulgation.
To ensure that everyone knows it, order the promulgation of this OJK Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on 30 April 2015
CHAIRMAN OF THE COMMISSIONERS' COUNCIL
OF THE FINANCIAL SERVICES AUTHORITY,
Signed.
MULIAMAN D. HADAD
Promulgated in Jakarta on 5 May 2015
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,
Signed.
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2015 NUMBER 98 Copy in accordance with the original Director of Legal Affairs I Ministry of Law, Signed.
Sudarmaji

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 7/POJK.04/2015
CONCERNING
AMENDMENTS TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 4/POJK.04/2014 CONCERNING PROCEDURES FOR COLLECTING ADMINISTRATIVE FINES IN THE FINANCIAL SERVICES SECTOR
I. GENERAL
Financial Services Authority Regulation Number 4/POJK.04/2014 concerning Procedures for Collecting Administrative Fines in the Financial Services Sector serves as the legal basis for the OJK to collect Administrative Fines imposed on all parties who violate legislation in the Financial Services Sector. However, since its promulgation on April 1, 2014, there have been several provisions that could not be implemented, specifically regarding the payment procedure for Administrative Fines against General Banks, namely through debiting the General Bank's account at Bank Indonesia for the benefit of the OJK. Therefore, this OJK Regulation stipulates that payment of administrative sanctions by General Banks must be carried out through deposit into the OJK's account or other payment methods established by the OJK, as regulated in Article 3. In addition, in order to provide legal certainty in the categorization of OJK non-performing loans originating from Administrative Fines and/or Interest and considering that Any Person subject to Administrative Fines imposed by the OJK has the right to submit an objection request regarding such sanctions, this OJK Regulation also stipulates that the categorization of Administrative Fines and/or Interest as OJK non-performing loans is counted from 1 (one) year after the end of the payment period established in the Administrative Fine Letter or the OJK response letter to the Objection Request. Changes to these provisions are also made in order to harmonize with Article 13 paragraph (1) of OJK Regulation Number 3/POJK.02/2014...

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  3/POJK.02/2014 concerning Procedures for the Implementation of Levies by the Financial Services Authority, which regulates that the categorization of non-performing loans for levies begins 1 (one) year from the date the payment period for the levy ends.
  II. ARTICLE BY ARTICLE
  Article I
  It is clear enough.
  Article II
  It is clear enough.
  SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5695