POJK on Monthly Reports for Asset-Backed Securities Collective Investment Contracts

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 15/POJK.04/2014
CONCERNING
MONTHLY REPORTS FOR ASSET-BACKED SECURITIES COLLECTIVE INVESTMENT CONTRACTS BY THE GRACE OF GOD THE ALMIGHTY, THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: a. that in order to enhance supervision and information transparency regarding Asset-Backed Securities Collective Investment Contracts, monthly reports for Asset-Backed Securities Collective Investment Contracts are required; b. that based on the considerations referred to in letter a, it is necessary to establish a Financial Services Authority Regulation concerning Monthly Reports for Asset-Backed Securities Collective Investment Contracts; 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:
Determining: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING MONTHLY REPORTS FOR ASSET-BACKED SECURITIES COLLECTIVE INVESTMENT CONTRACTS.

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

1. Investment Manager is a Party whose business activity manages a Securities Portfolio for clients or manages a collective investment portfolio for a group of clients, except Insurance Companies, Pension Funds, and Banks that conduct their own business activities based on applicable legislation.
2. Asset-Backed Securities Collective Investment Contract, hereinafter abbreviated as KIK EBA, is a contract between the Investment Manager and the Custodian Bank that binds the holders of Asset-Backed Securities, whereby the Investment Manager is authorized to manage the collective investment portfolio and the Custodian Bank is authorized to implement Collective Custody.

CHAPTER II
MONTHLY REPORTING OBLIGATIONS FOR KIK EBA
Article 2
(1) KIK EBA Investment Managers are obligated to submit monthly KIK EBA reports in accordance with the provisions in this Financial Services Authority Regulation.
(2) All members of the Board of Directors and Board of Commissioners of the KIK EBA Investment Manager are responsible for the truthfulness of the content of the monthly KIK EBA report. (3) The monthly KIK EBA report as referred to in paragraph (1) consists of:
a. general information related to KIK EBA, including:

1. parties involved in asset management;
2. initial assets; and
3. assets related to the reporting period;
   b. information related to receivables, including:
4. actual collection of receivables; and
5. information on debtor delays;
   c. information related to distribution/payments; and
   d. other information as stated in the appendix which is an integral part of this Financial Services Authority Regulation.
   (4) The format and structure of the monthly KIK EBA report as referred to in paragraph (1) must be prepared in accordance with the appendix which is an integral part of this Financial Services Authority Regulation.

CHAPTER III
SUBMISSION AND STORAGE OF MONTHLY KIK EBA REPORTS First Section Submission of Monthly KIK EBA Reports
Article 3
(1) The obligation to submit monthly KIK EBA reports as referred to in Article 2 paragraph (1) must be submitted to the Financial Services Authority no later than on the 12th day of the following month. (2) In the event that the submission deadline for the monthly report as referred to in paragraph (1) falls on a holiday, the monthly KIK EBA report must be submitted on the next working day.
Article 4
(1) Submission of monthly KIK EBA reports as referred to in Article 3 paragraph (1) is conducted electronically through the electronic reporting system provided by the Financial Services Authority at the address https://aria.ojk.go.id/. (2) Submission of monthly KIK EBA reports as referred to in paragraph (1) is conducted by the KIK EBA Investment Manager using access rights in the form of a user ID and password provided by the Financial Services Authority. (3) In the electronic submission of monthly KIK EBA reports, the KIK EBA Investment Manager must read and comply with the procedures and methods for using the Financial Services Authority's electronic reporting system, which can be downloaded from the Financial Services Authority website at the address https://aria.ojk.go.id/.
Article 5
(1) Monthly KIK EBA reports as referred to in Article 4 paragraph (1) are considered received by the Financial Services Authority at the time the KIK EBA Investment Manager receives the electronic receipt issued by the Financial Services Authority's electronic reporting system. (2) The electronic receipt as referred to in paragraph (1) is issued by the Financial Services Authority if the monthly KIK EBA report as referred to in Article 4 paragraph (1) has been received completely.
Article 6
(1) The Financial Services Authority's electronic reporting system as referred to in Article 4 paragraph (1) displays KIK EBA reports submitted by the KIK EBA Investment Manager to the Financial Services Authority. (2) KIK EBA reports displayed by the Financial Services Authority's electronic reporting system as referred to in paragraph (1) can be saved as electronic documents as regulated in Law Number 11 of 2008 concerning Information and Electronic Transactions. Second Section Storage of KIK EBA Reports
Article 7
KIK EBA Investment Managers are obligated to store:
a. the electronic receipt for the submission of monthly KIK EBA reports obtained from the Financial Services Authority's electronic reporting system; and b. the electronic document of the monthly KIK EBA report displayed by the Financial Services Authority's electronic reporting system, for at least 5 (five) years since the dissolution of the KIK EBA.
Article 8
(1) In the event that the Financial Services Authority declares and announces that the Financial Services Authority's electronic reporting system as referred to in Article 4 paragraph (1) is experiencing disturbances, monthly KIK EBA reports must be submitted to the Financial Services Authority via email (e-mail) at the address pelaporankikeba@ojk.go.id. (2) Reports as referred to in paragraph (1) are considered received by the Financial Services Authority at the time the KIK EBA Investment Manager has received a notification from the Financial Services Authority sent via email (e-mail).
Article 9
Monthly KIK EBA reports submitted to the Financial Services Authority as referred to in Article 4 paragraph (1) can only be accessed by the Financial Services Authority in the implementation of its duties.

CHAPTER IV
SANCTIONS
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 an administrative sanction 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 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 V
CLOSING PROVISIONS
Article 13
(1) The obligation of KIK EBA Investment Managers to submit monthly KIK EBA reports through the Financial Services Authority's electronic reporting system as regulated in this Financial Services Authority Regulation applies fully, starting from January 1, 2015. (2) At the time this Financial Services Authority Regulation comes into force until the obligation to submit monthly KIK EBA reports through the Financial Services Authority's electronic reporting system based on this Financial Services Authority Regulation applies fully as referred to in paragraph (1), KIK EBA Investment Managers must conduct trial submissions of monthly KIK EBA reports through the electronic reporting system at the address https://aria.ojk.go.id.
Article 14
Further provisions regarding the implementation of this Financial Services Authority Regulation are regulated in a Financial Services Authority Circular.
Article 15
This Financial Services Authority Regulation comes into force upon being promulgated.
To ensure 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 of 7 November 2014 CHAIRMAN OF THE COMMISSIONERS, FINANCIAL SERVICES AUTHORITY, Signed, MULIAMAN D. HADAD Promulgated in Jakarta On the date of 11 November 2014 MINISTER OF LAW AND HUMAN RIGHTS REPUBLIC OF INDONESIA, Signed, YASONNA H. LAOLY STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2014 NUMBER 345 Copy in accordance with the original Director of Law 1 Ministry of Law, Signed, Tini Kustini

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 15/POJK.04/2014
CONCERNING
MONTHLY REPORTS FOR ASSET-BACKED SECURITIES COLLECTIVE INVESTMENT CONTRACTS
I. GENERAL
Asset-Backed Securities Collective Investment Contracts, hereinafter abbreviated as KIK EBA, are one of the investment products currently circulating in the Indonesian Capital Market, which is a product resulting from the securitization of financial assets in the form of receivables, originating from Housing Credit (KPR) financing activities. The existence of KIK-EBA in the investment management industry is important given that the product can serve as a relatively safe and profitable investment alternative for investors. Along with the increasing development of KIK EBA products in the Indonesian Capital Market, it is necessary for the Financial Services Authority (OJK) to enhance supervision over such securitization activities in order to protect the interests of investors and the public, and to realize an orderly, fair, and efficient Indonesian Capital Market. In current regulations regarding the issuance and management of KIK EBA, there are no provisions regarding transparency in the management of KIK EBA as a basis for supervision by the Financial Services Authority through the obligation of periodic (monthly) reporting of KIK EBA to OJK, particularly regarding the development of collection results on the pool of receivables that underlie KIK EBA assets and the activity of paying investment returns to KIK EBA investors. Considering this, it is deemed necessary to regulate this reporting obligation in an OJK Regulation so that there is a legal basis requiring Investment Managers, as managers of KIK-EBA, to submit monthly reports to OJK. With this reporting, OJK can monitor the development of KIK EBA periodically and take preventive and repressive actions in order to protect investors and the public.
II. ARTICLE BY ARTICLE
Article 1
Clearly stated.
Article 2
Clearly stated.
Article 3
Clearly stated.
Article 4
Clearly stated.
Article 5
Clearly stated.
Article 6
Clearly stated.
Article 7
Clearly stated.
Article 8
Clearly stated.
Article 9
Clearly stated.
Article 10
Clearly stated.
Article 10
Clearly stated.
Article 11
The term "specific actions" includes, among others, the cancellation of the fitness and propriety test results for the Directors and/or Commissioners of the Asset-Backed Securities Collective Investment Contract manager who caused the violation.
Article 12
Clearly stated.
Article 13
Clearly stated.
Article 14
The provisions to be regulated in the Financial Services Authority Circular are technical provisions, such as procedures and methods for using the Financial Services Authority's electronic reporting system.
Article 15
Clearly stated.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5624

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 15/POJK.04/2014
CONCERNING
MONTHLY REPORTS FOR ASSET-BACKED SECURITIES COLLECTIVE INVESTMENT CONTRACTS

MONTHLY KIK EBA REPORT FOR THE PERIOD OF MONTH: ...................
NAME OF KIK EBA INVESTMENT MANAGER: ...................
RESPONSIBLE DIRECTOR: …................
NAME OF KIK EBA: ...................*)
A. General Information Related to Asset-Backed Securities Collective Investment Contracts

1. Parties Involved in Asset Management

2. Name of Initial Creditor (Originator)

3. Name of Service Provider (Servicer)

4. Name of Custodian Bank

5. Name of Rating Agency

6. Name of Appraiser

7. Name of Credit/Cash Flow Enhancement Facility Provider

8. Name of Other Related Parties, (specify))

9. Effective Date

10. Public Offering Period Dates
    Initial Offering End of Offering

11. Maturity Period of EBA)

12. Type of Receivable

13. Number of EBA Classes

14. Type of Income (fixed / variable)
    Fixed Cash Flow (Class A))
    Variable Cash Flow (Class B))

15. Interest Rate (%))
    Fixed Cash Flow (Class A))
    Variable Cash Flow (Class B))

16. Dividend) Fixed Cash Flow (Class A))
    Variable Cash Flow (Class B))
    Rp Non Rp % Rp Non Rp %

17. EBA Rating Fixed Cash Flow (Class A))
    Variable Cash Flow (Class B))

18. Credit/Cash Flow Enhancement Facility

19. Percentage of Initial Creditor (Originator) Ownership Value against Total EBA Value (%)

20. Number of EBA Holders Fixed Cash Flow (Class A))
    Variable Cash Flow (Class B))

21. Fair Market Value of EBA Fixed Cash Flow (Class A))
    Variable Cash Flow (Class B))
    Receivables Against Collateral Value Up To End of Reporting Period

22. Weighted Average Maturity of Receivables up to end of reporting period (in months)

23. Accumulated Value of Prepayments Up To End of Reporting Period
    Rp Non Rp)

24. Accumulated Value of Receivables Written Off Up To End of Reporting Period

25. Accumulated Value of Receivables Recovery up to end of Reporting Period
    B. Information Related to Receivables

26. Collected Receivables

27. Accumulated Collected Interest Receivables Up To End of Reporting Period)
    Rp Non Rp)

28. Accumulated Collected Penalty Receivables up to end of Reporting Period)

29. Accumulated Collected Principal Receivables up to end of Reporting Period

30. Accumulated Total Collected Receivables up to end of Reporting Period (sum of items 33, 34, and 35)

31. Debtor Delay Information

32. Number of Debtors in delay up to end of reporting period (Parties)

33. Percentage of Number of Debtors in delay against Total Number of Debtors up to end of reporting period.

34. Accumulated Value of Late Interest Receivables up to end of Reporting Period
    Rp Non Rp)

35. Accumulated Value of Late Principal Receivables up to end of Reporting Period
    Rp Non Rp)

36. Percentage of Late Interest Receivable Value against Total Interest Receivable Value up to end of reporting period (%)

37. Percentage of Late Principal Receivable Value against Total Principal Receivable Value up to end of reporting period (%)
    C. KIK EBA Income and Payments to EBA Holders

38. Accumulated Investment Returns and Penalties up to end of reporting period

39. Date of Interest/Dividend Payment (dd/mm/yyyy)
    Accumulated Payment of Interest/Dividend, Principal, Investment Returns, and Penalties Class A***) Class B***) Rp Non Rp) Rp Non Rp)

40. Accumulated Interest/Dividends paid to EBA holders

41. Accumulated Principal paid to EBA holders

42. Accumulated Investment Returns paid to EBA holders)

43. Accumulated EBA penalty collection paid to EBA holders

44. Accumulated Payment of Expenses

45. Total Investment Returns, Penalties, Interest/Dividends, and Principal paid after deducting Expenses (sum of items 45, 46, 47, and 48, minus item 49)
    Notes:
    *) If the Investment Manager manages more than 1 (one) KIK EBA, the Investment Manager is required to submit Monthly KIK EBA Reports consisting of all KIK EBA reports managed by them. ) If any *) Adjusted according to the existing EBA classes ) Foreign currency conversion into Rupiah refers to the middle exchange rate of Bank Indonesia stated in the system and the system will automatically calculate the total. EXPLANATIONS A. General Information Related to Asset-Backed Securities Collective Investment Contracts

46. Name of Initial Creditor (Originator) is the name of the Initial Creditor that has transferred its financial assets to KIK EBA.

47. Name of Service Provider (Servicer) is the name of the Service Provider responsible for processing and supervising payments made by debtors.

48. Name of Custodian Bank is the name of the Party authorized to implement Collective Custody of KIK EBA.

49. Name of Rating Agency: is the name of the Securities Rating Agency that rates the EBA.

50. Name of Appraiser is the name of the Party that appraises the securitized assets.

51. Name of Credit/Cash Flow Enhancement Facility Provider is the name of the Party providing facilities aimed at enhancing the quality of the collective investment portfolio in order to make payments to Asset-Backed Securities holders.

52. Name of Other Related Parties is the name of other Parties related to the management of Asset-Backed Securities Collective Investment Contracts (KIK EBA) other than those mentioned above.

53. Effective Date is the date KIK EBA receives an effective statement from the Financial Services Authority.

54. Public Offering Period Dates are the start and end dates when Asset-Backed Securities (EBA) are offered to the public.

55. Maturity Period of EBA is the period established in KIK EBA for the final payment of principal receivables to EBA holders.

56. Type of Receivable: is the type of receivable underlying the issuance of EBA. (example: Home Ownership Credit receivables, credit card receivables, etc.).

57. Number of EBA Classes is the number of classes offered in the EBA.

58. Type of Income (fixed/variable): is the type of income to be received by EBA holders, fixed or variable.

59. Interest Rate (%) is the interest rate used as the basis for calculating interest payments to EBA holders.

60. Dividend: is the profit value received by Variable Cash Flow EBA holders.

61. EBA Rating is the EBA rating scale issued by the Securities Rating Agency.

62. Credit/Cash Flow Enhancement Facility is the type of credit/cash flow enhancement facility used to enhance the quality of the collective investment portfolio in order to make payments to EBA holders.

63. Percentage of Initial Creditor (Originator) Ownership Value against Total EBA Value (%) is the percentage of EBA value owned by the Initial Creditor against the total EBA value.

64. Number of EBA holders is the number of EBA holders for each class at the time of reporting.

65. Fair Market Value of EBA is the estimated fair market value of each class of Asset-Backed Securities based on market interest rates, the latest rating of each class of Asset-Backed Securities, and expected payments for each class of Asset-Backed Securities accompanied by a description of the valuation method.

66. Number of Initial Debtors is the number of Parties who are debtors of KIK EBA at the time of its formation.

67. Total Initial Receivable Value is the total value of KIK EBA receivables from its debtors at the time of its formation.

68. Weighted Average Maturity of Initial Receivables (in months) is the weighted average maturity of EBA receivables at the time of its formation.

69. Total Initial Collateral Value is the total collateral value over KIK EBA assets at the time of its formation.

70. Number of Debtors Up To End of Reporting Period is the total number of debtors who still have obligations to KIK EBA up to the end of the reporting period.

71. Receivable Value Up To End of Reporting Period is the value of debtor receivables that are still required to be paid to KIK EBA up to the end of the reporting period.

72. Collateral Value Up To End of Reporting Period is the total collateral value over KIK-EBA assets up to the end date of the EBA reporting period.

73. Percentage of Weighted Average Receivable Value against Collateral Value up to end of Reporting Period is the ratio of the weighted average receivable value to the weighted average collateral value up to the end date of the KIK-EBA reporting period.

74. Weighted Average Maturity of Receivables (months) is the weighted average maturity of KIK-EBA receivable assets.

75. Accumulated Value of Prepayments up to end of Reporting Period is the total sum of prepayment values over principal and other costs (if any) that have been paid by debtors up to the end date of the KIK-EBA reporting period.

76. Accumulated...

77. Accumulated Value of Written-Off Receivables up to the End of the Reporting Period is the total sum of the value of receivables that have been written off up to the end date of the KIK-EBA reporting period.

78. Accumulated Value of Write-Off Recoveries up to the End of the Reporting Period is the total sum of recoveries on assets that have been written off up to the end date of the KIK-EBA reporting period.

B. Information Related to Receivables

33. Accumulated Collected Interest Receivables up to the End of the Reporting Period is the total sum of the collection of interest receivable values up to the end date of the KIK-EBA reporting period.

34. Accumulated Collected Penalty Receivables up to the End of the Reporting Period is the total sum of the collection of penalty values up to the end date of the KIK-EBA reporting period.

35. Accumulated Collected Principal Receivables up to the End of the Reporting Period is the total sum of the collection of principal receivable values up to the end date of the KIK-EBA reporting period.

36. Accumulated Total Collected Receivables up to the End of the Reporting Period is the total sum of the collection of interest, penalty, and principal receivable values up to the end date of the KIK-EBA reporting period.

37. Number of Late Paying Debtors up to the End of the Reporting Period (Party) is the number of debtors who are late in paying (in arrears) receivables that are assets of the KIK-EBA up to the end of the KIK-EBA reporting period.

38. Percentage of Late Paying Debtors Against Total Number of Debtors up to the End of the Reporting Period (%) is the percentage of KIK-EBA debtors who are late in paying receivables (in arrears) compared to the total number of debtors up to the end of the KIK-EBA reporting period.

39. Accumulated Value of Late Paying Interest Receivables from Debtors up to the End of the Reporting Period is the total sum of the value of interest receivables from KIK-EBA debtors who are late in paying (in arrears) up to the end of the KIK-EBA reporting period.

40. Accumulated Value of Late Paying Principal Receivables from Debtors up to the End of the Reporting Period is the total sum of the value of principal receivables from KIK-EBA debtors who are late in paying (in arrears) up to the end of the KIK-EBA reporting period.

41. Percentage of Late Paying Interest Receivable Value Against Total Interest Receivable Value up to the End of the Reporting Period (%) is the percentage of KIK-EBA interest receivable values that are late in being paid (in arrears) by KIK-EBA debtors compared to the total value...

remaining principal receivable values up to the end of the KIK-EBA reporting period.

42. Percentage of Late Paying Principal Receivable Value Against Total Principal Receivable Value up to the End of the Reporting Period (%) is the percentage of KIK-EBA principal receivable values that are late in being paid (in arrears) by KIK-EBA debtors compared to the total remaining principal receivable values up to the end of the KIK-EBA reporting period.

C. KIK-EBA Income and Payments to EBA Holders

43. Accumulated Investment Returns and Penalties up to the End of the Reporting Period is the income obtained from investment returns and penalty collections.

44. Date of Interest/Dividend Payment is the date of payment of interest/dividends to EBA holders.

45. Accumulated Interest/Dividends Paid to EBA Holders is the sum of the collection of interest/dividend receivables that have been paid to EBA holders up to the end of the reporting period.

46. Accumulated Principal Paid to EBA Holders is the sum of the collection of principal receivables that have been paid to EBA holders up to the end of the reporting period.

47. Accumulated Investment Returns Paid to EBA Holders is the total value of EBA investment returns that have been paid to EBA holders up to the end of the reporting period.

48. Accumulated EBA Penalty Collection Paid to EBA Holders is the total value of penalty receivable collections that have been paid to EBA holders up to the end of the reporting period.

49. Accumulated Payment of Expenses is the sum of expenses charged related to the payment of interest/dividends, principal, investment returns, and penalty collections up to the end of the reporting period.

50. Total Investment Returns, Penalties, Interest/Dividends, and Principal Paid after Deduction of Expenses is the total sum of investment returns, penalties, interest/dividends, and principal that have been paid to EBA holders after deducting the distribution of charged expenses.

Determined in Jakarta
On the date 7 November 2014
CHAIRMAN OF THE BOARD OF COMMISSIONERS,
FINANCIAL SERVICES AUTHORITY
Signed,
MULIAMAN D. HADAD

Copy matches the original
Legal Director 1
Legal Department,
Signed,
Tini Kustini