FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 53 /POJK.04/2016

CONCERNING

DOCUMENT MAINTENANCE BY SECURITIES ADMINISTRATION OFFICES AND ISSUERS

CONDUCTING THEIR OWN SECURITIES ADMINISTRATION

BY THE GRACE OF GOD THE ALMIGHTY,

THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that with the enactment of Law Number 21 of 2011 concerning the Financial Services Authority, since December 31, 2012, the functions, duties, and authority for regulating and supervising financial services activities in the Capital Market sector, including Securities Administration Offices, have transferred from the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority; b. that in order to provide clarity and certainty regarding regulations on document maintenance by Securities Administration Offices and Issuers conducting their own securities administration, regulations on Document Maintenance by Securities Administration Offices and Issuers Conducting Their Own Securities Administration, issued prior to the establishment of the Financial Services Authority, need to be changed into a Financial Services Authority Regulation;

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY

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 Document Maintenance by Securities Administration Offices and Issuers Conducting Their Own Securities Administration;

Considering:

1. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Additional State Gazette of the Republic of Indonesia Number 3608);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Additional State Gazette of the Republic of Indonesia Number 5253);

DECIDES:

Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING DOCUMENT MAINTENANCE BY SECURITIES ADMINISTRATION OFFICES AND ISSUERS CONDUCTING THEIR OWN SECURITIES ADMINISTRATION.

CHAPTER I

GENERAL PROVISIONS

Article 1

In this Financial Services Authority Regulation, the following terms are defined as:

1. Securities Administration Office is a Party that, based on a contract with an Issuer, executes the recording of securities ownership and the distribution of rights related to securities.
2. Issuer is a Party that conducts a Public Offering.
3. Public Company is a Corporation that meets the criteria for the number of shareholders and paid-up capital in accordance with the provisions of Law Number 8 of 1995 concerning the Capital Market.

CHAPTER II

DOCUMENT MAINTENANCE

First Section

Securities Administration Offices

Article 2

Securities Administration Offices are obligated to administer, store, and maintain records, books, data, and information in printed and electronic forms related to:
a. Issuers whose securities are administered by the Securities Administration Office; b. securities administration services provided; and
c. the management of the Securities Administration Office.

Article 3

Documents as referred to in Article 2 letter a consist of at least:
a. the Articles of Association of the Issuer along with all amendments; and b. the contract for the administration of the Issuer's securities.

Article 4

Documents as referred to in Article 2 letter b consist of at least:
a. copies of the operational activity reports of the Securities Administration Office, consisting of registration activity reports, lists of securities denomination compositions, and lists of securities distribution; b. shareholder register books and supporting documents;
c. minutes of the General Meeting of Shareholders and minutes of meetings related to other securities administration services;
d. dividend distribution, bonus shares, Rights to Purchase Additional Securities (Pre-emptive Rights), and other securities rights; and e. registration of ownership of 5% (five percent) or more of shares and every change in ownership of shares of the Issuer or Public Company.

Article 5

Documents as referred to in Article 2 letter c consist of at least:
a. the Articles of Association along with amendments; b. records of Securities Administration Office activities, including records regarding violations previously committed; and
c. other documents including correspondence, memorandums, papers, books, notices, announcements, circulars, and other records made or received by the Securities Administration Office in connection with the implementation of its business activities.

Article 6

Documents as referred to in Article 2, Article 3, and Article 4 must be available at all times for the purposes of Financial Services Authority examinations.

Article 7

Securities Administration Offices are obligated to safeguard every security or bookkeeping records under their management and are obligated to create copies of the bookkeeping records stored in a separate and secure location.

Article 8

Documents as referred to in Article 5 must be stored for a minimum period of 5 (five) years.

Second Section

Issuers Conducting Their Own Securities Administration

Article 9

(1) Issuers conducting their own securities administration, such as securities registration, dividend distribution, bonus shares, Rights to Purchase Additional Securities (Pre-emptive Rights), distribution of other securities rights, and other administration services, are obligated to administer, store, and maintain records, books, data, and information in printed and electronic forms related to the management of such securities administration. (2) Documents as referred to in paragraph (1) must be available at all times for the purposes of Financial Services Authority examinations.

CHAPTER III

SANCTION PROVISIONS

Article 10

(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 causing the violation, in the form of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction of 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) letters b, c, d, e, f, or 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 a fine as referred to in paragraph (1) letter b may be imposed independently or together with the imposition of administrative sanctions as referred to in paragraph (1) letters c, d, e, f, or g.

Article 11

In addition to administrative sanctions as referred to in Article 10 paragraph (1), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 12

The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 10 paragraph (1) and specific actions as referred to in Article 11 to the public.

CHAPTER IV

CLOSING PROVISIONS

Article 13

Upon the effective date of this Financial Services Authority Regulation, the Decision of the Chairman of the Capital Market Supervisory Agency Number Kep-76/PM/1996 dated January 17, 1996 concerning Document Maintenance by Securities Administration Offices and Issuers Conducting Their Own Securities Administration, along with Regulation Number X.H.2 which is an attachment, is revoked and declared invalid.

Article 14

This Financial Services Authority Regulation takes effect upon being enacted.

In order for everyone to know, ordering the enactment of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on December 2, 2016

CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY,

signed
MULIAMAN D. HADAD

Enacted in Jakarta on December 7, 2016

MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,

signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 282

A copy in accordance with the original
Legal Director 1
Legal Department

signed
Yuliana

EXPLANATION

OF

FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 53 /POJK.04/2016

CONCERNING

DOCUMENT MAINTENANCE BY SECURITIES ADMINISTRATION OFFICES AND ISSUERS

CONDUCTING THEIR OWN SECURITIES ADMINISTRATION

I. GENERAL

Since December 31, 2012, the functions, duties, and authority for regulating and supervising financial services activities in the Capital Market, Insurance, Pension Fund, Financing Institutions, and Other Financial Service Institutions sectors have transferred from the Minister of Finance and the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority.

In light of the above, it is necessary to restructure existing regulations, particularly those related to the Capital Market sector, by converting Capital Market Supervisory Agency regulations related to the Capital Market sector into Financial Services Authority Regulations. This restructuring is conducted to ensure that there are Financial Services Authority Regulations related to the Capital Market sector that are consistent with Financial Services Authority Regulations in other sectors.

Based on the background and aspects mentioned above, it is necessary to replace the legislation in the Capital Market sector regulating Document Maintenance by Securities Administration Offices and Issuers Conducting Their Own Securities Administration, namely the Decision of the Chairman of the Capital Market Supervisory Agency Number: Kep-76/PM/1996 dated January 17, 1996 concerning Document Maintenance by Securities Administration Offices and Issuers Conducting Their Own Securities Administration, along with Regulation Number X.H.2 which is an attachment, into a Financial Services Authority Regulation concerning Document Maintenance by Securities Administration Offices and Issuers Conducting Their Own Securities Administration.

II. ARTICLE BY ARTICLE

Article 1

Sufficiently clear.

Article 2

Records, books, data, and information related to Securities Administration Office management include:
a. personnel regulations; b. operational activity standard operating procedures (SOP);
c. organizational structure;
d. job descriptions for the Board of Commissioners, Board of Directors, and employees; e. employee list; and f. domicile certificate.

Article 3

Sufficiently clear.

Article 4

Minutes of the General Meeting of Shareholders documents may consist of the minutes of the General Meeting of Shareholders, the deed of the General Meeting of Shareholders, or the record of the General Meeting of Shareholders.

Article 5

Sufficiently clear.

Article 6

Sufficiently clear.

Article 7

Sufficiently clear.

Article 8

Sufficiently clear.

Article 9

Sufficiently clear.

Article 10

Sufficiently clear.

Article 11

Sufficiently clear.

Article 12

Sufficiently clear.

Article 13

Sufficiently clear.

Article 14

Sufficiently clear.

ADDITIONAL STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5978