FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 29 /POJK.04/2015

CONCERNING

ISSUERS OR PUBLIC COMPANIES EXEMPTED FROM

REPORTING AND ANNOUNCEMENT OBLIGATIONS

BY THE GRACE OF GOD THE ALMIGHTY,

THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to provide protection to investors and the effectiveness of the Financial Services Authority's supervision, legislation in the Capital Market sector requires Issuers or Public Companies to submit reports periodically to the Financial Services Authority and announce such reports to the public; b. that there are Issuers or Public Companies with certain conditions that cannot submit reports to the Financial Services Authority and announce such reports to the public;
c. that Article 86 paragraph (2) of Law Number 8 of 1995 concerning the Capital Market grants authority to the Financial Services Authority to exempt Issuers or Public Companies from the obligation to submit reports to the Financial Services Authority and announce such reports to the public;
d. that based on considerations as referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning Issuers or Public Companies Exempted from Reporting and Announcement Obligations;

Recalling:

1. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the 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, Supplement to the State Gazette of the Republic of Indonesia Number 5253);

DECIDING:

Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING ISSUERS OR PUBLIC COMPANIES EXEMPTED FROM REPORTING AND ANNOUNCEMENT OBLIGATIONS.

CHAPTER I

GENERAL PROVISIONS

Article 1

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

1. Reporting is the submission of interim financial reports, annual financial reports, and annual reports to the Financial Services Authority in order to fulfill obligations as regulated in legislation in the Capital Market sector regulating interim financial reports, annual financial reports, and annual reports of Issuers or Public Companies.

2. Announcement is the publication to the public through announcements in daily newspapers with national circulation and/or publication on the Website of the Issuer or Public Company of interim financial reports, annual financial reports, and annual reports in order to fulfill obligations as regulated in legislation in the Capital Market sector regulating announcements in daily newspapers and/or publication on the Website of interim financial reports, annual financial reports, and annual reports of Issuers or Public Companies.

CHAPTER II

CERTAIN CONDITIONS OF ISSUERS OR PUBLIC COMPANIES THAT MAY BE EXEMPTED FROM REPORTING AND ANNOUNCEMENT OBLIGATIONS

Article 2

(1) Issuers or Public Companies that meet certain conditions may be exempted from the Reporting and Announcement obligations.

(2) The certain conditions as referred to in paragraph (1) are as follows:
a. the invalidity of all business licenses from the competent authority; b. declared bankrupt based on a court decision that has obtained permanent legal force; or
c. meeting at least 3 (three) of the following 6 (six) conditions:

1. has not been fully operational for at least the last 3 (three) years;
2. receives business activity restrictions from the competent authority that disrupt business continuity for at least the last 3 (three) years;
3. receives a freeze on all business activities;
4. the Financial Services Authority has been unable to correspond with the Issuer or Public Company for at least the last 3 (three) years;
5. there are no members of the Board of Directors, members of the Board of Commissioners, and major shareholders who can be contacted for at least the last 3 (three) years; and
6. the deletion of the recording of the Issuer's or Public Company's Securities on the Stock Exchange has become effective.

CHAPTER III

DETERMINATION OF ISSUERS OR PUBLIC COMPANIES EXEMPTED FROM REPORTING AND ANNOUNCEMENT OBLIGATIONS

Article 3

(1) The Financial Services Authority determines Issuers or Public Companies that are exempted from the Reporting and Announcement obligations.

(2) The exemption from the Reporting and Announcement obligations as referred to in paragraph (1) takes effect from the date of the Financial Services Authority's determination.

(3) The Financial Services Authority determines Issuers or Public Companies that are exempted from the Reporting and Announcement obligations as referred to in paragraph (1) for the first time no later than 3 (three) months from the effective date of this Financial Services Authority Regulation, which includes:
a. the exemption of Reporting and Announcement obligations that will arise as referred to in paragraph (1) which take effect from the date of the Financial Services Authority's determination; and b. the Reporting and Announcement obligations that were exempted before the Financial Services Authority's determination as referred to in paragraph (1).

Article 4

Issuers or Public Companies that are exempted from the Reporting and Announcement obligations may carry out corporate actions by fulfilling the provisions of legislation in the Capital Market sector related to such corporate actions.

Article 5

(1) In the event that an Issuer or Public Company that is exempted from the Reporting and Announcement obligations no longer meets the conditions as referred to in Article 2, the Financial Services Authority determines that such Issuer or Public Company is no longer an Issuer or Public Company exempted from the Reporting and Announcement obligations.

(2) Issuers or Public Companies are required to fulfill the Reporting and Announcement obligations as regulated in legislation in the Capital Market sector regulating interim financial reports, annual financial reports, and annual reports since obtaining the determination from the Financial Services Authority as referred to in paragraph (1).

(3) In the event that the time period between the Financial Services Authority's determination as referred to in paragraph (1) and the end of the period:
a. the interim financial report in question is at least 120 (one hundred twenty) days; or b. the annual financial report and annual report in question are at least 180 (one hundred eighty) days, the Issuer's or Public Company's obligation to perform Reporting and Announcement as referred to in paragraph (2) begins to apply to each respective reporting period.

(4) In the event that the time period between the Financial Services Authority's determination as referred to in paragraph (1) and the end of the period:
a. the interim financial report in question is less than 120 (one hundred twenty) days; or b. the annual financial report and annual report in question are less than 180 (one hundred eighty) days, the Issuer's or Public Company's obligation to perform Reporting and Announcement as referred to in paragraph (2) begins to apply to each respective subsequent reporting period.

Article 6

The Financial Services Authority announces Issuers or Public Companies that are determined to be exempted and/or no longer exempted from the Reporting and Announcement obligations on the Financial Services Authority's Website.

CHAPTER IV

SANCTION PROVISIONS

Article 7

(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. freeze 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 separately or together with the imposition of administrative sanctions as referred to in paragraph (1) letters c, d, e, f, or g.

Article 8

In addition to administrative sanctions as referred to in Article 7 paragraph (1), the Financial Services Authority may take certain actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 9

The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 7 paragraph (1) and certain actions as referred to in Article 8 to the public.

CHAPTER V

CLOSING PROVISIONS

Article 10

This Financial Services Authority Regulation takes effect 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 the date .16 December 2015.
............ ...
CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD

Promulgated in Jakarta on the date 22 December 2015 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, signed YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2015 NUMBER 304

A copy in accordance with the original
Legal Director 1
Ministry of Law signed
Sudarmaji

EXPLANATION

OF

FINANCIAL SERVICES AUTHORITY REGULATION

NUMBER 29 /POJK.04/2015

CONCERNING

ISSUERS OR PUBLIC COMPANIES EXEMPTED FROM

REPORTING AND ANNOUNCEMENT OBLIGATIONS

I. GENERAL

Law Number 8 of 1995 concerning the Capital Market regulates that Issuers or Public Companies are required to inform the public in a timely manner of all Material Information regarding their business or Securities that can influence investors' decisions regarding such Securities and/or the price of such Securities. Information regarding their business conditions covers both financial, management, production, and matters related to their business activities. Such information is of great importance to the investing public as a consideration for investing in Issuers or Public Companies.

Considering the importance of such Material Information, the submission of such Material Information in the form of financial reports and annual reports needs to be done periodically and on time. To ensure that such information is delivered to the public and in accordance with applicable legislation, such information is also required to be submitted to the Financial Services Authority as the Capital Market regulator.

In connection with the periodic submission of information, Issuers or Public Companies are required to announce to the public and submit to the Financial Services Authority interim financial reports, annual financial reports, and annual reports.

Facts show that there are Issuers or Public Companies that cannot submit to the public and the Financial Services Authority interim financial reports, annual financial reports, and annual reports, caused among others by the Issuer or Public Company experiencing difficulties related to the implementation of its business activities, having no management, supervisors, and/or major shareholders, or the Financial Services Authority being unable to correspond with the company, thereby causing the supervisory function performed by the Financial Services Authority to become suboptimal.

Article 86 paragraph (2) of Law Number 8 of 1995 concerning the Capital Market has granted authority to the Financial Services Authority to determine Issuers or Public Companies that are exempted from the obligation to submit reports periodically to the Financial Services Authority and announce such reports to the public.

Considering the facts and authority in Law Number 8 of 1995 concerning the Capital Market, the Financial Services Authority needs to issue a regulation providing exemption to Issuers or Public Companies experiencing the aforementioned conditions.

This Financial Services Authority Regulation regulates the certain conditions experienced by Issuers or Public Companies that can be exempted from the obligation to submit and announce interim financial reports, annual financial reports, and annual reports. With the establishment of this Financial Services Authority Regulation, it is hoped that it can increase the effectiveness of the supervisory function performed by the Financial Services Authority and provide legal certainty regarding the obligation to submit and announce interim financial reports, annual financial reports, and annual reports by Issuers or Public Companies meeting certain conditions, as well as provide public disclosure to investing public regarding information limitations concerning Issuers or Public Companies experiencing certain conditions, which can be accessed publicly.

II. ARTICLE BY ARTICLE

Article 1

Sufficiently clear.

Article 2

Paragraph (1)
Sufficiently clear.

Paragraph (2)
Letter a
What is meant by "the invalidity of all business licenses from the competent authority" is the permanent invalidity of all licenses, revocation of business licenses, or business licenses that have expired and are not renewed.

Letter b
Sufficiently clear.

Letter c
Number 1
What is meant by "not fully operational" is having absolutely no income whatsoever for 3 (three) consecutive years based on financial reports.

Number 2
What is meant by "business activity restrictions" is restrictions on the business activities of the Issuer or Public Company itself, not the industry as a whole.
What is meant by "business continuity disrupted" is the condition of an Issuer or Public Company that experiences a net loss.

Number 3
Sufficiently clear.

Number 4
Sufficiently clear.

Number 5
Sufficiently clear.

Number 6
What is meant by "deletion of recording" or delisting is the deletion of Securities from the list of Securities recorded on the Exchange so that such Securities cannot be traded on the Exchange.

Article 3

Sufficiently clear.

Article 4

Sufficiently clear.

Article 5

Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
An example of the Issuer's or Public Company's obligation to perform Reporting and Announcement for each respective reporting period in this paragraph is as follows:
PT ABCD Tbk. is an Issuer exempted from the Reporting and Announcement obligations in accordance with this Financial Services Authority Regulation based on the Financial Services Authority's determination on February 29, 2016. Because its condition no longer meets the requirements to be exempted from the Reporting and Announcement obligations under this Financial Services Authority Regulation, the Financial Services Authority determined that PT ABCD Tbk. is no longer an Issuer exempted from the Reporting and Announcement obligations under this Financial Services Authority Regulation on February 1, 2018. Therefore, since February 1, 2018, PT ABCD Tbk. is again required to submit interim financial reports, annual financial reports, and annual reports to the Financial Services Authority and announce them to the public in accordance with legislation in the Capital Market sector regulating submission to the Financial Services Authority and announcement in daily newspapers and/or publication on the Website of interim financial reports, annual financial reports, and annual reports of Issuers or Public Companies.

Based on Regulation Number X.K.2, Appendix of the Chairman of the Capital Market Supervisory Agency and Financial Institutions Decision Number: KEP-346/BL/2011 concerning the Submission of Periodic Financial Reports of Issuers or Public Companies dated July 5, 2011 (which was in effect when this Financial Services Authority Regulation was issued), the latest deadlines are:
a. submission to the Financial Services Authority and announcement and/or publication on the Website of the Issuer or Public Company of interim financial reports is at the end of the third month after the date of the interim financial report, if accompanied by an Accountant's report for the audit of the financial report; b. submission to the Financial Services Authority and announcement and/or publication on the Website of the Issuer or Public Company of annual financial reports accompanied by an Accountant's report for the audit of the financial report is at the end of the third month after the date of the annual financial report.

The time period from the Financial Services Authority's determination date of February 1, 2018, to the end of the reporting period for the interim financial report of the first semester of 2018 is 150 (one hundred fifty) days, so PT ABCD Tbk. is already required to perform Reporting and Announcement for the interim financial report of the first semester of 2018 accompanied by an Accountant's report for the audit of the financial report no later than at the end of the third month after the date of the interim financial report, namely September 30, 2018.

As for the time period between the Financial Services Authority's determination date of February 1, 2018, and the end of the reporting period for the annual financial report of 2018 is 334 (three hundred thirty-four) days, so PT ABCD Tbk. is already required to perform Reporting and Announcement for the annual financial report of 2018 accompanied by an Accountant's report for the audit of the financial report no later than at the end of the third month after the date of the annual financial report, namely March 31, 2019.

Paragraph (4)
An example of the Issuer's or Public Company's obligation to perform Reporting and Announcement for the subsequent reporting period in this paragraph is as follows:
The Financial Services Authority determined that PT ABCD Tbk. in the example in the explanation of paragraph (3) is no longer an Issuer exempted from the Reporting and Announcement obligations under this Financial Services Authority Regulation on July 6, 2018. Therefore, PT ABCD Tbk. since July 6, 2018, is again required to submit interim financial reports, annual financial reports, and annual reports to the Financial Services Authority and announce them to the public in accordance with legislation in the Capital Market sector regulating submission to the Financial Services Authority and announcement in daily newspapers and/or publication on the Website of interim financial reports, annual financial reports, and annual reports of Issuers or Public Companies.

The time period from the Financial Services Authority's determination date of July 6, 2018, to the end of the reporting period for the annual financial report of 2018 is 179 (one hundred seventy-nine) days, so PT ABCD Tbk. is not yet required to perform Reporting and Announcement for the annual financial report of 2018 accompanied by an Accountant's report for the audit of the financial report no later than at the end of the third month after the date of the interim financial report, namely March 31, 2019. However, PT ABCD Tbk. is required to perform Reporting and Announcement for the annual financial report of the following year, namely the annual financial report of 2019 accompanied by an Accountant's report for the audit of the financial report no later than at the end of the third month after the date of the interim financial report, namely March 31, 2020.

Article 6

The Financial Services Authority's announcement also includes all Issuers or Public Companies that are still exempted from the Reporting and Announcement obligations.

Article 7

Sufficiently clear.

Article 8

What is meant by "certain actions" includes among others:
a. postponement of granting effective statements, for example, effective statements for business mergers, business consolidations; and b. postponement of granting the Financial Services Authority's statement that there are no further responses to documents submitted to the Financial Services Authority in the context of capital increases with Preemptive Rights of Open Companies.

Article 9

Sufficiently clear.

Article 10

Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5778