POJK on Pawnshop Business

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 31/POJK.05/2016
CONCERNING
PAWNSHOP BUSINESS
BY THE GRACE OF GOD THE ALMIGHTY
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to increase financial inclusion for the lower-middle class and micro, small, and medium enterprises, it is necessary to expand financial services through the implementation of pawnshop business; b. that in order to implement pawnshop business that provides easy access to loans, particularly for the lower-middle class and micro, small, and medium enterprises, there is a need for a legal basis for the Financial Services Authority to supervise pawnshop business in Indonesia;
c. that a legal basis for the supervision of pawnshop business is needed to create healthy pawnshop businesses, provide legal certainty for pawnshop business actors, and protect consumers;
d. that based on the considerations referred to in letters a, b, and c, it is necessary copy

to establish a Financial Services Authority Regulation concerning Pawnshop Business;

Recalling: 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);

DECIDES:

To establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING PAWNSHOP BUSINESS.

CHAPTER I
GENERAL PROVISIONS

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

Pawnshop Business is any business concerning the provision of loans secured by movable property, safekeeping services, valuation services, and/or other services, including those implemented based on Sharia principles.
Pawnshop Company is a private pawnshop company and a government pawnshop company that are regulated and supervised by the Financial Services Authority.
Private Pawnshop Company is a legal entity that conducts Pawnshop Business.
Government Pawnshop Company is PT Pegadaian (Persero) as referred to in Staatsblad Year 1928 Number 81 concerning Pandhuis Reglement and Government Regulation Number 51 of 2011 concerning the Change of Legal Entity Form of Pegadaian State-Owned Enterprise (Perum) into a Limited Liability Company (Persero).
Sharia Principles are Islamic legal provisions based on fatwas and/or Sharia conformity statements from the National Sharia Council of the Indonesian Ulema Council.
Board of Directors:
a. for Pawnshop Companies in the form of a limited liability company, is the Board of Directors as referred to in Law Number 40 of 2007 concerning Limited Liability Companies; or b. for Pawnshop Companies in the form of a cooperative legal entity, is the management as referred to in Law Number 25 of 1992 concerning Cooperatives.
Board of Commissioners:
a. for Pawnshop Companies in the form of a limited liability company, is the Board of Commissioners as referred to in Law Number 40 of 2007 concerning Limited Liability Companies; or b. for Pawnshop Companies in the form of a cooperative legal entity, is the supervisors as referred to in Law Number 25 of 1992 concerning Cooperatives.
Sharia Supervisory Board, hereinafter abbreviated as DPS, is a part of the Pawnshop Company's organ that has the task and function of supervising the implementation of business activities to ensure compliance with Sharia Principles.
Paid-up Capital:
a. for Pawnshop Companies in the form of a limited liability company, is paid-up capital as referred to in Law Number 40 of 2007 concerning Limited Liability Companies; or b. for Pawnshop Companies in the form of a cooperative legal entity, is basic savings and mandatory savings as referred to in Law Number 25 of 1992 concerning Cooperatives.
Pawn is a right obtained by the Pawnshop Company over a movable property, which is handed over to it by the customer or their representative, as collateral for their loan, and which gives the Pawnshop Company the authority to take repayment of the loan from that property prior to other creditors, with the exception of costs for auctioning or selling the property and costs for saving the property incurred after the property is handed over as collateral, which costs must be prioritized.
Loan Money is money lent by the Pawnshop Company to the customer.
Collateral Property is any movable property pledged by the customer to the Pawnshop Company.
Appraiser is a person who has a professional certificate to conduct valuation of the Collateral Property value in a Pawn transaction.
Pawn Receipt is a document evidencing a loan agreement with collateral, signed by the Pawnshop Company and the customer.
Customer is an individual or business entity that receives Loan Money secured by Collateral Property and/or utilizes other available services at the Pawnshop Company.
Auction is the sale of Collateral Property open to the public with written and/or oral increasing or decreasing price offers to achieve the highest price, preceded by an auction announcement.
Surplus Money is the excess amount from the sale of Collateral Property minus the amount of Loan Money, interest/deposit service fees, costs for auctioning, and costs for saving the property.
Examination is a series of activities to search for, collect, process, and evaluate data and/or information, and to assess and provide conclusions regarding the implementation of business at the Pawnshop Company.
Examiner is an employee of the Financial Services Authority or another party appointed by the Financial Services Authority to conduct Examinations.
Day means working day.
Financial Services Authority, hereinafter abbreviated as OJK, is the Financial Services Authority as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.

CHAPTER II
LEGAL ENTITY FORM, OWNERSHIP, AND CAPITAL

Article 2
(1) The legal entity form of a Pawnshop Company is:
a. limited liability company; or b. cooperative.

(2) The shares of a Pawnshop Company in the form of a limited liability company as referred to in paragraph (1) letter a may only be owned by:
a. the Republic of Indonesia; b. local government;
c. Indonesian citizens; and/or
d. Indonesian legal entities.

(3) Ownership provisions for Pawnshop Companies in the form of cooperative legal entities as referred to in paragraph (1) letter b follow the provisions of legislation in the field of cooperatives.

Article 3
Pawnshop Companies are prohibited from being owned, directly or indirectly, by foreign citizens and/or business entities that are partially or wholly owned by foreign citizens or foreign business entities, unless such direct or indirect ownership is conducted through the stock exchange.

Article 4
(1) The Paid-up Capital of a Pawnshop Company is determined based on the scope of business area, namely regency/city or province.

(2) The amount of Paid-up Capital of a Pawnshop Company as referred to in paragraph (1) is set at least:
a. IDR 500,000,000.00 (five hundred million rupiah), for regency/city business area scope; or b. IDR 2,500,000,000.00 (two billion five hundred million rupiah), for province business area scope.

(3) Paid-up Capital as referred to in paragraph (2) must be paid in cash and in full in the name of the Pawnshop Company at one of the general banks or Sharia general banks in Indonesia.

CHAPTER III
BUSINESS REGISTRATION AND LICENSING
Section One
Registration

Article 5
(1) Actors of Pawnshop Business who have conducted Pawnshop Business activities before this OJK Regulation is enacted may submit a registration application to OJK.

(2) Actors of Pawnshop Business who will submit a registration application as referred to in paragraph (1) are exempted from the legal entity form provisions as referred to in Article 2 paragraph (1), the business area scope provisions as referred to in Article 4 paragraph (1), and the capital provisions as referred to in Article 4 paragraph (2).

(3) The registration application as referred to in paragraph (1) must be submitted to OJK at the latest 2 (two) years since this OJK Regulation is enacted.

(4) The registration application by Actors of Pawnshop Business as referred to in paragraph (1) is submitted to the Executive Head of Insurance, Pension Funds, Financing Institutions, and Other Financial Service Institutions Supervision.

(5) Actors of Pawnshop Business as referred to in paragraph (1) who submit a registration application must use Format 1 as contained in the Appendix which is an integral part of this OJK Regulation and be accompanied by:
a. the deed of establishment of the business entity including the articles of association and any amendments thereto that have been approved/approved by the competent authority or notified to the competent authority and/or business evidence letter from the competent authority; b. identity proof and curriculum vitae completed with the latest 4x6 cm color passport photos from:

owners except for cooperatives;
Board of Directors members; and
Board of Commissioners members;
c. company domicile certificate from the competent authority;
d. proof of having conducted business activities; and e. photos of service units (outlets) sized 4R/5R.

(6) OJK provides approval for the registration application at the latest 10 (ten) Days since the receipt of complete application documents in accordance with the requirements in this OJK Regulation.

(7) OJK establishes the registration of Actors of Pawnshop Business in the form of a registered proof certificate.

(8) The registered proof certificate as referred to in paragraph (7) must be stated in every office or service unit (outlet).

Article 6
(1) Registered Actors of Pawnshop Business may open service units (outlets).

(2) The opening of service units (outlets) as referred to in paragraph (1) must be reported to OJK through periodic reports.

Article 7
(1) Registered Actors of Pawnshop Business must submit periodic reports every 3 (three) months for periods ending on March 31, June 30, September 30, and December 31 to OJK at least consisting of:
a. profile of the Actor of Pawnshop Business; b. financial reports; and
c. operational reports.

(2) Further provisions regarding the form, structure, and method of submitting periodic reports as referred to in paragraph (1) are regulated in an OJK Circular Letter.

Article 8
(1) Registered Actors of Pawnshop Business as referred to in Article 5 paragraph (7) must submit a business license application as a Pawnshop Company within a period of at the latest 3 (three) years since this OJK Regulation is enacted.

(2) Registered Actors of Pawnshop Business, when submitting a business license application, must meet the provisions in this OJK Regulation.

(3) Registered Actors of Pawnshop Business in the form of a limited liability company or cooperative, when submitting a business license application, are exempted from the Paid-up Capital provisions as referred to in Article 4 paragraph (2).

(4) Capital provisions for Registered Actors of Pawnshop Business in the form of a limited liability company or cooperative as referred to in paragraph (3), when submitting a business license application, must meet Equity of:
a. IDR 500,000,000.00 (five hundred million rupiah), for regency/city business area scope; or b. IDR 2,500,000,000.00 (two billion five hundred million rupiah), for province business area scope.

(5) If the time period as referred to in paragraph (1) has expired and the Registered Actor of Pawnshop Business has not submitted a business license application, the registration is declared void and invalid.

Section Two
Business Licensing of Pawnshop Companies

Article 9
(1) Pawnshop Companies conduct business activities after obtaining a business license from OJK.

(2) To obtain a business license as a Pawnshop Company from OJK as referred to in paragraph (1), the Board of Directors of the Pawnshop Company must submit a business license application to OJK using Format 2 as contained in the Appendix which is an integral part of this OJK Regulation and must be accompanied by documents consisting of:
a. the deed of establishment of the limited liability company or cooperative that has been approved by the competent authority, which must at least contain:

name, domicile, and scope of business area;
business activities as a Pawnshop Company;
capital;
ownership; and
authority, responsibility, term of office of the Board of Directors, Board of Commissioners, and/or DPS, and the latest amendment to the articles of association (if any) accompanied by proof of approval, consent, and/or notification receipt letter from the competent authority;
b. data of Board of Directors, Board of Commissioners, and/or DPS members including:
photocopy of valid Identity Cards (KTP);
photocopy of valid Taxpayer Identification Numbers (NPWP);
curriculum vitae completed with the latest 4x6 cm color passport photos; and
stamped declaration letter from each member of the Board of Directors, Board of Commissioners, and/or DPS stating:
a) are not recorded in the list of bad debts in the financial services sector; b) are not listed in the List of Unqualified (DTL) in the financial services sector; c) have never been sentenced for committing criminal offenses in the field of financial services and/or economy based on a court decision that has acquired permanent legal force in the last 5 (five) years; d) have never been sentenced for committing criminal acts based on a court decision that has acquired permanent legal force in the last 5 (five) years; e) have never been declared bankrupt or declared guilty causing a business entity to be declared bankrupt based on a court decision that has acquired permanent legal force in the last 5 (five) years; and f) have never been a shareholder, director, commissioner, or Sharia supervisory board member at a financial services company whose business license was revoked due to violations in the last 5 (five) years;
c. data of shareholders or founding members:
in the event that shareholders or founding members are Indonesian citizens, the attached documents consist of:
a) photocopy of tax liability notification letter (SPT) for the last 1 (one) year; b) documents as referred to in paragraph (2) letter b numbers 1, 2, and 3; and c) stamped declaration letter from the concerned party stating that:

capital deposits do not originate from loans;
capital deposits do not originate from and are not for money laundering and financial crime criminal offenses;
are not recorded in the list of bad debts in the financial services sector;
are not listed in the List of Unqualified (DTL) in the financial services sector;
have never been sentenced for committing criminal offenses in the field of financial services and/or economy based on a court decision that has acquired permanent legal force in the last 5 (five) years;
have never been sentenced for committing criminal acts based on a court decision that has acquired permanent legal force in the last 5 (five) years;
have never been declared bankrupt or declared guilty causing a business entity to be declared bankrupt based on a court decision that has acquired permanent legal force in the last 5 (five) years; and
have never been a shareholder, director, commissioner, or Sharia supervisory board member at a financial services company whose business license was revoked due to violations in the last 5 (five) years;

in the event that shareholders or founding members are Indonesian legal entities, the attached documents consist of:
a) deed of establishment including the articles of association and any amendments thereto that have been approved/approved by the competent authority or notified to the competent authority; b) annual financial reports and the latest monthly financial reports; c) documents as referred to in paragraph (2) letter b numbers 1, 2, and 3 for directors; and d) stamped declaration letter from the directors stating that:

capital deposits do not originate from loans;
capital deposits do not originate from and are not for money laundering and financial crime criminal offenses;
there is no foreign ownership, directly or indirectly;
are not recorded in the list of bad debts in the financial services sector;
are not listed in the List of Unqualified (DTL) in the financial services sector;
have never been sentenced for committing criminal offenses in the field of financial services and/or economy based on a court decision that has acquired permanent legal force in the last 5 (five) years;
have never been sentenced for committing criminal acts based on a court decision that has acquired permanent legal force in the last 5 (five) years;
have never been declared bankrupt or declared guilty causing a business entity to be declared bankrupt based on a court decision that has acquired permanent legal force in the last 5 (five) years; and
have never been a shareholder, director, commissioner, or Sharia supervisory board member at a financial services company whose business license was revoked due to violations in the last 5 (five) years;

in the event that the shareholder is the Republic of Indonesia, the attached documents consist of a Government Regulation concerning state capital participation for the establishment of a Pawnshop Company; and/or
in the event that the shareholder is local government, the attached documents consist of a Regional Regulation concerning regional capital participation for the establishment of a Pawnshop Company;
d. photocopy of proof of Paid-up Capital repayment, consisting of:
deposit slip from shareholders or founding members to the savings or checking account in the name of the Pawnshop Company; and
Pawnshop Company bank statement period starting from the date of capital deposit until the date of the business license application letter;
e. organizational structure containing the personnel structure which at least has the functions of loan decision-maker, Appraiser, Customer Service, and administration; f. work plan for the first 1 (one) year which at least contains:
description of business activities to be conducted;
targets and steps taken to achieve the said targets; and
projected financial reports for the next 1 (one) year;
g. proof of operational readiness including:
proof of ownership or control of office building and rooms or service units (outlets), consisting of photocopy of ownership certificate, building use right certificate, or use right certificate in the name of the Pawnshop Company, or building/room lease agreement accompanied by photos of the building exterior and interior photos and room layout;
list of office inventory and equipment; and
example of Pawn Receipt and/or forms to be used;
h. photocopy of Taxpayer Identification Number (NPWP) in the name of the Pawnshop Company;
i. proof of payment of licensing fees;
j. proof of Appraiser certificate issued by a professional certification body or another party appointed by OJK as the issuer of Appraiser certification; k. DPS recommendation letter from the National Sharia Council of the Indonesian Ulema Council, for Pawnshop Companies that will conduct business activities based on Sharia Principles; and
l. anti-money laundering and counter-terrorism financing implementation guidelines.

(3) OJK provides approval or rejection of the business license application as referred to in paragraph (2) at the latest 10 (ten) Days since the business license application and documents are received completely and in accordance with the requirements in this OJK Regulation.

(4) OJK submits a statement of completeness or request for document completeness to the applicant at the latest 10 (ten) Days after the application is received.

(5) In the event that the submitted business license application is incomplete, the applicant must submit the missing documents at the latest 10 (ten) Days since the date of the document completeness request letter from OJK.

(6) If the time period as referred to in paragraph (5) has expired and the applicant does not submit document completeness, the business license application is declared void.

(7) Rejection of the business license application as referred to in paragraph (3) is accompanied by the reasons for rejection.

(8) In the event that the business license application is approved, OJK establishes a business license grant decision according to the scope of business area as:
a. pawnshop company, for Pawnshop Companies conducting business activities conventionally; or b. Sharia pawnshop company, for Pawnshop Companies conducting all business activities based on Sharia Principles.

(9) Further provisions regarding the method of applying for a business license for Pawnshop Companies as referred to in paragraph (2) are regulated in an OJK Circular Letter.

Article 10
The name of the Pawnshop Company must be stated clearly in the articles of association as referred to in Article 9 paragraph (2) letter a number 1, which starts with the legal entity form and contains the word:
a. Gadai or a word characterizing Pawn activities, for Pawnshop Companies conducting business activities conventionally; or b. Gadai or a word characterizing Pawn activities followed by the word syariah, for Pawnshop Companies conducting all business activities based on Sharia Principles.

Article 11
(1) Pawnshop Companies that have obtained a business license from OJK must conduct business activities at the latest 30 (thirty) Days since the date the business license is established.

(2) Pawnshop Companies must submit a report on the implementation of business activities as referred to in paragraph (1) to OJK at the latest 15 (fifteen) Days since the date the business activities begin.

(3) The report on the implementation of business activities as referred to in paragraph (2) must be conducted using Format 3 as contained in the Appendix which is an integral part of this OJK Regulation with a photocopy of the Pawn Receipt attached.

Article 12
(1) Pawnshop Companies are prohibited from opening or moving the address of service units (outlets) outside the business area established in the business license grant decision from OJK.

(2) Provisions regarding the requirements and method for opening or moving the address of service units (outlets) as referred to in paragraph (1) are regulated in an OJK Circular Letter.

CHAPTER IV
BUSINESS IMPLEMENTATION

Article 13
(1) The business activities of Pawnshop Companies include:
a. distribution of Loan Money secured based on Pawn law; b. distribution of Loan Money secured based on fiduciary;
c. provision of valuable goods safekeeping services; and/or
d. provision of valuation services.

(2) In addition to conducting business activities as referred to in paragraph (1), Pawnshop Companies may conduct other business activities, namely:
a. other activities not related to Pawnshop Business that provide income based on commission (fee based income) as long as they do not contradict legislation in the field of financial services; and/or b. other business activities with OJK approval.

(3) Business activities as referred to in paragraph (1) and paragraph (2) may be conducted conventionally or based on Sharia Principles.

(4) Implementation of business activities based on Sharia Principles as referred to in paragraph (3) must use contracts with the following provisions:

a. meet the principles of justice (‘adl), balance (tawazun), public interest (maslahah), and universalism (alamiyah); b. do not contain gharar, maysir, riba, zhulm, risywah, and haram objects; and
c. do not contradict Islamic law provisions based on fatwa and/or Sharia compliance statements from the National Sharia Council of the Indonesian Ulema Council.
(5) Further provisions regarding other business activities with OJK approval as referred to in paragraph (2) letter b are regulated in an OJK Circular Letter.

Article 14
(1) A Pawnshop Company intending to conduct other business activities as referred to in Article 13 paragraph (2) letter b must not currently be subject to sanctions by OJK. (2) A Pawnshop Company intending to conduct other business activities as referred to in paragraph (1) must submit a request to OJK and must attach documents containing at least a description of:
a. the business activities to be conducted; and b. the rights and obligations of the parties.
(3) OJK analyzes the documents as referred to in paragraph (2) and issues an approval or rejection letter within a maximum of 20 (twenty) Days after the request is received completely and in accordance with the requirements in this OJK Regulation.

Article 15
A Pawnshop Company conducting business activities for the disbursement of Loan Money with fiduciary guarantees as referred to in Article 13 paragraph (1) letter b must conduct risk mitigation, which can be done by:
a. transferring business risk through credit insurance or credit guarantee mechanisms; b. transferring risk over goods serving as collateral through insurance mechanisms; and/or
c. registering fiduciary guarantees over goods serving as collateral from business activities.

Article 16
A Pawnshop Company must clearly state information at each office or service unit (outlet) regarding the following:
a. the name and/or logo of the Pawnshop Company; b. the business license number and date, and a statement that the Pawnshop Company is supervised by OJK;
c. operating days and hours; and
d. the loan interest rate or remuneration/yield for Pawnshop Companies conducting business based on Sharia Principles, and administrative fees.

Article 17
(1) A Pawnshop Company must determine Collateral Goods that can be accepted as collateral.
(2) The determination of Collateral Goods that can be accepted as collateral as referred to in paragraph (1) must be done in accordance with the criteria for Collateral Goods. (3) Provisions regarding the criteria for Collateral Goods as referred to in paragraph (2) are regulated in an OJK Circular Letter.

Article 18
A Pawnshop Company disbursing Loan Money based on Pawn law is prohibited from:
a. using Collateral Goods; b. storing Collateral Goods at the Customer's location;
c. owning Collateral Goods; and/or
d. re-pawning Collateral Goods to other parties.

Article 19
(1) A Pawnshop Company must have at least 1 (one) Appraiser to appraise Collateral Goods at each service unit (outlet).
(2) In conducting appraisals, Appraisers must be equipped with written guidelines established by the Pawnshop Company.
(3) Appraisers as referred to in paragraph (1) must pass the Collateral Goods appraisal certification.

Article 20
(1) A Pawnshop Company must provide an appraisal value for each Collateral Goods to the Customer.
(2) In order to meet the quality of Collateral Goods appraisal, a Pawnshop Company must:
a. provide appraisal tools; and b. establish a list of fair market prices for Collateral Goods.

Article 21
(1) A Pawnshop Company must meet the minimum value ratio between Loan Money and the appraisal value of Collateral Goods when providing Loan Money to Customers, unless the Customer states in writing that they desire a lower Loan Money. (2) Further provisions regarding the minimum value ratio between Loan Money and the appraisal value of Collateral Goods as referred to in paragraph (1) are regulated in an OJK Circular Letter.

Article 22
(1) A Pawnshop Company must have storage for Collateral Goods based on Pawn law and consigned goods that meet security and safety requirements.
(2) A Pawnshop Company must have written guidelines for maintaining the security and safety of Collateral Goods based on Pawn law and consigned goods. (3) A Pawnshop Company must insure Collateral Goods based on Pawn law and consigned goods in order to mitigate risk. (4) Further provisions regarding storage requirements for Collateral Goods based on Pawn law and consigned goods as referred to in paragraph (1) are regulated in an OJK Circular Letter.

Article 23
(1) A Pawnshop Company must hand over the Pawn Certificate to the Customer upon receiving Collateral Goods.
(2) The Pawn Certificate as referred to in paragraph (1) must be drafted in accordance with agreement provisions as regulated in OJK Regulations regarding consumer protection in the financial services sector. (3) A Pawnshop Company must keep at least 1 (one) copy of the Pawn Certificate for each transaction.

Article 24
(1) The loan period to Customers with guarantees based on Pawn law is at most 4 (four) months.
(2) In the event that Loan Money with guarantees based on Pawn law is not paid off by the due date, the Pawnshop Company may auction the Collateral Goods. (3) Prior to the execution of the Auction as referred to in paragraph (2), based on agreement between the Pawnshop Company and the Customer, the Collateral Goods may be sold by:
a. the Customer selling the Collateral Goods themselves; or b. the Customer granting power of attorney to the Pawnshop Company to sell the Collateral Goods. (4) In the event that the Pawnshop Company agrees with the Customer to conduct the sales method as referred to in paragraph (3), such sales must be executed within a maximum of 20 (twenty) Days after the due date. (5) The agreement between the Pawnshop Company and the Customer as referred to in paragraph (4) must be included in the Pawn Certificate. (6) The sale of Collateral Goods as referred to in paragraph (3) letter b is conducted if the sale value can fulfill the Customer's obligations to the Pawnshop Company. (7) Collateral Goods sold by the Customer before the Auction date are prohibited from being purchased directly or indirectly by the Pawnshop Company or its employees. (8) A Pawnshop Company must have written guidelines for selling Collateral Goods as referred to in paragraph (3).

Article 25
(1) In the event that the Customer has paid off the Loan Money plus loan interest or remuneration/yield for Pawnshop Companies conducting business based on Sharia Principles, the Pawnshop Company must return the Collateral Goods to the Customer in the same physical condition as when the Collateral Goods were handed over. (2) In the event that Collateral Goods as referred to in paragraph (1) are lost or damaged, the Pawnshop Company must replace them with:
a. money or goods of equal or equivalent value to the Collateral Goods at the time the Collateral Goods were lost or damaged, for Collateral Goods in the form of jewelry; or b. money or goods of equal or equivalent value to the Collateral Goods at the time the Collateral Goods were pledged, for Collateral Goods other than jewelry.

Article 26
Conditions and procedures for selling Collateral Goods based on Pawn law by Auction are guided by relevant legislation.

Article 27
(1) A Pawnshop Company must return Surplus Money from the proceeds of the sale of Collateral Goods by Auction as referred to in Article 26 or based on the power of attorney as referred to in Article 24 paragraph (3) letter b to the Customer. (2) A Pawnshop Company must separately record Surplus Money from the proceeds as referred to in paragraph (1). (3) Further provisions regarding the procedures for returning Surplus Money as referred to in paragraph (1) are regulated in an OJK Circular Letter.

Article 28
(1) A Pawnshop Company must have and implement mechanisms for handling complaints and dispute resolution for Customers.
(2) The complaint handling and dispute resolution mechanisms as referred to in paragraph (1) must be stated in the Pawn Certificate.
(3) Provisions regarding complaint handling and dispute resolution as referred to in paragraph (1) are guided by OJK Regulations regarding consumer protection in the financial services sector and OJK Regulations regarding alternative dispute resolution institutions and their implementing regulations.

Article 29
(1) A Pawnshop Company conducting business activities based on Sharia Principles as referred to in Article 13 paragraph (3) must appoint at least 1 (one) DPS (Sharia Supervisory Board). (2) DPS as referred to in paragraph (1) must be appointed in the General Meeting of Shareholders or Members' Meeting after obtaining a recommendation from the National Sharia Council of the Indonesian Ulema Council. (3) For Pawnshop Companies in the form of a legal entity cooperative, the appointment of DPS as referred to in paragraph (2) may also be conducted after obtaining DPS training certification from the National Sharia Council of the Indonesian Ulema Council. (4) DPS as referred to in paragraph (1) may be appointed by 1 (one) or several Pawnshop Companies jointly. (5) DPS as referred to in paragraph (1) has supervisory duties and provides advice to the Board of Directors to ensure business activities comply with Sharia Principles.

(6) Supervisory and advisory duties as referred to in paragraph (5) must be conducted at least regarding:
a. the operational activities of the Pawnshop Company; b. operational guidelines and marketed products; and
c. the development, study, and recommendation of business activities of the Pawnshop Company, which among others include products, operations, and marketing.

Article 30
(1) A Pawnshop Company may conduct part of its business activities based on Sharia Principles as referred to in Article 13 paragraph (3) with the prior approval of OJK. (2) A Pawnshop Company conducting part of its business activities based on Sharia Principles must:
a. have separate accounting for business activities based on Sharia Principles from conventional business activities; and b. appoint employees responsible for the implementation of business activities conducted based on Sharia Principles.

Article 31
(1) To obtain approval to conduct part of business activities based on Sharia Principles as referred to in Article 30 paragraph (1), the Board of Directors of the Pawnshop Company must submit an approval request to OJK using Format 4 as contained in the Appendix which is an integral part of this OJK Regulation and must be accompanied by documents:
a. a recommendation letter from DPS from the National Sharia Council of the Indonesian Ulema Council or DPS training certification from the National Sharia Council of the Indonesian Ulema Council; b. a resume of employees responsible for business activities conducted based on Sharia Principles, accompanied by the latest 4x6 cm color passport photos; and
c. examples of Pawn Certificates and/or forms based on Sharia Principles to be used.
(2) OJK provides approval or rejection of the approval request as referred to in paragraph (1) within a maximum of 10 (ten) Days since the approval request and documents are received completely and in accordance with the requirements in this OJK Regulation. (3) OJK sends a statement of completeness or a request for document completeness to the applicant within a maximum of 10 (ten) Days after the request is received. (4) In the event that the approval request to conduct part of business activities based on Sharia Principles submitted is incomplete, the applicant must submit the missing documents within a maximum of 10 (ten) Days since the date of the document completeness request letter from OJK. (5) If the time limit as referred to in paragraph (4) has expired and the applicant does not submit document completeness, the approval request is declared void. (6) Rejection of the approval request as referred to in paragraph (2) is accompanied by reasons for rejection. (7) In the event that the request as referred to in paragraph (2) is approved, OJK establishes an approval letter for conducting part of business activities based on Sharia Principles.

CHAPTER V
REPORTING
First Section
Changes in Paid-up Capital, Changes in Head Office Address, and Changes in Pawnshop Company Name

Article 32
(1) A Pawnshop Company must report changes in Paid-up Capital in writing to OJK within a maximum of 15 (fifteen) Days after the issuance of approval or notification acceptance letter from the competent authority, or approved by the members' meeting. (2) The report of changes in Paid-up Capital as referred to in paragraph (1) must be submitted by the Board of Directors of the Pawnshop Company using Format 5 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by documents:
a. changes to the articles of association accompanied by proof of approval from the competent authority for Pawnshop Companies in the form of a limited liability company; b. minutes of the members' meeting and/or changes to the articles of association for Pawnshop Companies in the form of a cooperative legal entity; and
c. a statement that capital deposits do not originate from loans and/or money laundering crimes.

Article 33
(1) A Pawnshop Company must report changes in head office address in writing to OJK within a maximum of 10 (ten) Days calculated from the date of relocation. (2) The report of changes in head office address as referred to in paragraph (1) must be submitted by the Board of Directors of the Pawnshop Company using Format 6 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by documents:
a. proof of ownership of the building for the new head office; and b. photocopy of the Taxpayer Identification Number (NPWP) that has stated the new head office address.

Article 34
(1) A Pawnshop Company making name changes must report name changes within a maximum of 15 (fifteen) Days after the issuance of approval from the competent authority, or approved by the members' meeting. (2) The name change report as referred to in paragraph (1) must be submitted by the Board of Directors of the Pawnshop Company using Format 7 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by documents:
a. changes to the articles of association accompanied by proof of approval from the competent authority for Pawnshop Companies in the form of a limited liability company; b. minutes of the members' meeting and/or changes to the articles of association for Pawnshop Companies in the form of a cooperative legal entity; and
c. Taxpayer Identification Number (NPWP) in the name of the new Pawnshop Company.

Second Section
Pawnshop Company Reporting

Article 35
(1) A Pawnshop Company must submit periodic reports every 3 (three) months for periods ending on March 31, June 30, September 30, and December 31 to OJK. (2) In addition to periodic reports as referred to in paragraph (1), a Pawnshop Company must submit ad hoc reports when required by OJK. (3) A Pawnshop Company conducting part of its business activities based on Sharia Principles must submit reports on business activities conducted based on Sharia Principles in periodic reports as referred to in paragraph (1). (4) Reports as referred to in paragraph (1) must be submitted to OJK no later than the end of the following month. (5) If the final submission deadline for reports as referred to in paragraph (4) falls on a holiday, the final submission deadline for reports is the next working day. (6) Reports as referred to in paragraph (1) are submitted by Pawnshop Companies in the form of:
a. Pawnshop Company profile; b. financial reports; and
c. operational reports.
(7) Further provisions regarding the form, structure, and procedures for submitting periodic reports as referred to in paragraph (1) are regulated in an OJK Circular Letter.

CHAPTER VI
MERGER, CONVERSION, ACQUISITION, AND SEPARATION

Article 36
(1) A Pawnshop Company conducting merger or conversion must submit a merger or conversion report to OJK within a maximum of 15 (fifteen) Days calculated from the date of receiving approval or ratification of changes to the articles of association from the competent authority. (2) The merger or conversion report as referred to in paragraph (1) must be submitted by the Board of Directors of the Pawnshop Company using Format 8 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by documents:
a. minutes of the General Meeting of Shareholders or Members' Meeting; b. minutes of the merger or conversion approved or ratified by the competent authority;
c. establishment minutes for the Pawnshop Company resulting from the conversion, which has been ratified by the competent authority; and
d. shareholder or member data as referred to in Article 9 paragraph (2) letter c, in the event of new shareholders or new members.
(3) Based on the merger or conversion report as referred to in paragraph (2), OJK establishes:
a. the revocation of the business license of the Pawnshop Company merging or conducting conversion; and/or b. the issuance of a business license to the Pawnshop Company resulting from the conversion. (4) Prior to the issuance of the business license as referred to in paragraph (3) letter b, the Pawnshop Company resulting from the conversion is prohibited from conducting business activities.

Article 37
(1) A Pawnshop Company being acquired must submit an acquisition report to OJK within a maximum of 15 (fifteen) Days since the date of the acquisition deed made before a notary. (2) The acquisition report as referred to in paragraph (1) must be submitted by the Board of Directors of the Pawnshop Company using Format 9 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by documents:
a. minutes of the General Meeting of Shareholders or Members' Meeting; b. acquisition deed; and
c. shareholder or founding member data as referred to in Article 9 paragraph (2) letter c.

Article 38
(1) A Pawnshop Company conducting separation must submit a separation report to OJK within a maximum of 15 (fifteen) Days calculated from the date of the separation deed made before a notary. (2) Separation as referred to in paragraph (1) can be conducted by:
a. pure separation; or b. impure separation.
(3) Pure separation as referred to in paragraph (2) letter a results in all assets and liabilities of the Pawnshop Company transferring by law to 2 (two) or more other Pawnshop Companies receiving the transfer, and the Pawnshop Company conducting the separation ends by law. (4) Impure separation as referred to in paragraph (2) letter b results in part of the assets and liabilities of the Pawnshop Company transferring by law to 1 (one) or more other Pawnshop Companies receiving the transfer, and the Pawnshop Company conducting the separation remains. (5) The separation report as referred to in paragraph (1) must be submitted by the Board of Directors of the Pawnshop Company using Format 10 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by documents:
a. minutes of the General Meeting of Shareholders or Members' Meeting; and b. separation deed.
(6) Based on the separation report as referred to in paragraph (5), OJK revokes the business license of the Pawnshop Company conducting pure separation as referred to in paragraph (3).

Article 39
A Pawnshop Company conducting merger, conversion, acquisition, and separation must comply with provisions in this OJK Regulation and other legislation regarding merger, conversion, acquisition, and separation.

CHAPTER VII
PAWNSHOP COMPANY ASSOCIATION

Article 40
(1) In the event that an association covering Pawnshop Companies in Indonesia has been formed, Pawnshop Companies must register as members of the association with the following provisions:
a. for Pawnshop Companies that have obtained business licenses before the association was formed, within a maximum of 3 (three) months since the association was formed; b. for Pawnshop Companies that obtain business licenses after the association was formed, within a maximum of 3 (three) months since obtaining the business license. (2) The association as referred to in paragraph (1) must obtain approval from OJK. (3) The association as referred to in paragraph (1) has at least the following duties:
a. coordinating the formulation of practice standards and code of ethics for Pawnshop Companies; and b. conducting continuous education and training. (4) The implementation of the association's duties as referred to in paragraph (3) is reported to OJK.

CHAPTER VIII
SUPERVISION AND EXAMINATION
First Section
Supervision of Pawnshop Companies

Article 41
(1) Supervision of Pawnshop Companies is conducted by OJK.
(2) Supervision of Pawnshop Companies is conducted based on this OJK Regulation and its implementing regulations.

Second Section
Examination of Pawnshop Companies

Article 42
(1) In order to implement the supervisory function as referred to in Article 41 paragraph (1), OJK has the authority to conduct Examinations of Pawnshop Companies. (2) Examinations as referred to in paragraph (1) are conducted by an Examination team which may consist of:
a. OJK employees assigned to conduct Examinations; b. other parties designated by OJK; or
c. a combination of OJK employees and other parties designated by OJK.

Article 43
The implementation of Examinations for each Pawnshop Company is conducted:
a. periodically in accordance with the annual Examination plan established by OJK; and/or b. at any time when necessary.

Article 44
(1) Examinations as referred to in Article 43 are conducted by Examiners based on an Examination order letter and an Examination notification letter. (2) Prior to conducting Examinations as referred to in paragraph (1), an Examination notification letter must first be sent to the Pawnshop Company.

(3) The Notification of Inspection as referred to in paragraph (2) contains the following information:
a. the number and date of the Inspection Order; b. the name of the Inspector;
c. the purpose of the Inspection;
d. the time limit for the Inspection; e. the documents required for the Inspection; and f. the deadline for submitting documents to the Inspector. (4) The Notification of Inspection as referred to in paragraph (2) must be submitted at the latest 3 (three) Days before the date of the Inspection activity. (5) The provisions as referred to in paragraph (2) are exempted if the submission of the Notification of Inspection is suspected to complicate or hinder the Inspection process or to allow actions to obscure the actual situation or to hide or eliminate data, information, or reports required for the implementation of the Inspection activity.

Article 45
(1) Inspections as referred to in Article 43 are conducted through the following stages:
a. Inspection preparation; b. implementation of Inspection activities; and
c. reporting of Inspection results.
(2) Inspection preparation as referred to in paragraph (1) letter a is made based on the results of analysis of periodic reports and other supporting data. (3) Implementation of Inspection activities as referred to in paragraph (1) letter b is conducted by conducting Inspections at the Pawnshop Company, Inspections at the OJK office, or Inspections at other locations determined by OJK.

Article 46
(1) At the time the Inspection is about to begin, the Inspector must show the Inspection Order and the Inspector's identification.
(2) In the event that the Inspector cannot meet the provisions as referred to in paragraph (1), the Pawnshop Company to be inspected may refuse the Inspection. (3) The Inspector is obligated to keep confidential data, documents, and/or information obtained during the Inspection from unauthorized parties, except in the course of implementing functions, duties, and authorities based on OJK decisions or as required by law. (4) Further provisions regarding the procedures for Inspections are regulated in an OJK Circular Letter.

Article 47
(1) With regard to the provisions as referred to in Article 46 paragraph (2), the Pawnshop Company being inspected is prohibited from refusing and/or hindering the smoothness of the Inspection process. (2) In the implementation of the Inspection, the Pawnshop Company being inspected is obligated to:
a. fulfill requests to provide or lend books, files, notes, dispositions, memorandums, documents, electronic data, including copies thereof; b. provide statements and explanations related to the aspects being inspected, both orally and in writing;
c. give the Inspector the opportunity to enter and inspect places or rooms deemed necessary;
d. give the Inspector the opportunity to examine the existence and use of physical facilities related to the aspects being inspected; and/or e. present third parties, including independent auditors, to provide data, documents, and/or information to the Inspector related to the Inspection. (3) The Pawnshop Company being inspected is deemed to be hindering the smoothness of the Inspection process if it does not fulfill the obligations as referred to in paragraph (2) or lends books, provides notes, documents, or information that are not true.

Article 48
(1) After the implementation of the Inspection as referred to in Article 45 paragraph (1) letter b ends, the Inspector prepares a report on the Inspection results. (2) The report on the Inspection results as referred to in paragraph (1) consists of:
a. a report on interim Inspection results; and b. a report on final Inspection results.
(3) The Inspector submits the report on interim Inspection results to the Pawnshop Company at the latest 30 (thirty) Days after the end of the implementation of the Inspection. (4) In the event that the Inspection results contain OJK recommendations that must be carried out by the Pawnshop Company, the Pawnshop Company is obligated to carry out those recommendations. (5) The Pawnshop Company is obligated to take follow-up steps in accordance with the recommendations contained in the report on the Inspection results as referred to in paragraph (4). (6) The Pawnshop Company is obligated to report the implementation of follow-up steps as referred to in paragraph (5) to OJK at least every month or in accordance with the report on the Inspection results as referred to in paragraph (2). (7) The obligation to carry out recommendations as referred to in paragraph (4) ends when OJK assesses that the Pawnshop Company has carried out those recommendations. (8) The OJK assessment as referred to in paragraph (7) is communicated to the Pawnshop Company via letter. (9) The Pawnshop Company being inspected may submit comments on the report on interim Inspection results as referred to in paragraph (3) to OJK at the latest 20 (twenty) Days after the date the report on interim Inspection results was established. (10) If after the time limit as referred to in paragraph (9) the Pawnshop Company does not provide written comments on the report on interim Inspection results, OJK establishes the report on interim Inspection results as the report on final Inspection results at the latest 15 (fifteen) Days after the time limit as referred to in paragraph (9) ends. (11) In the event that the Pawnshop Company submits comments that do not contain objections to the report on interim Inspection results that have been submitted, so that no discussion is required, OJK establishes the report on interim Inspection results as the report on final Inspection results at the latest 15 (fifteen) Days after the receipt of comments from the Pawnshop Company being inspected. (12) In the event that the Pawnshop Company submits comments containing objections to the report on interim Inspection results that have been submitted and discussion of the report on interim Inspection results is required, OJK may invite the relevant Pawnshop Company to conduct discussions on the submitted comments. (13) The discussion process on comments on the report on interim Inspection results as referred to in paragraph (12) is at the latest 15 (fifteen) Days since the receipt of the comment letter. (14) Based on the results of the discussion as referred to in paragraph (13), OJK establishes the report on interim Inspection results as the report on final Inspection results at the latest 15 (fifteen) Days after the completion of discussions with the Pawnshop Company being inspected. (15) The report on final Inspection results as referred to in paragraph (2) letter b is confidential. (16) Further provisions
regarding the report on the Inspection results as referred to in paragraph (1) are regulated in an OJK Circular Letter.

Part Three
Cooperation with Specific Parties

Article 49
(1) OJK may cooperate with specific parties to and on behalf of OJK to implement part of the supervision functions for Pawnshop Companies.
(2) The cooperation as referred to in paragraph (1) is conducted based on an agreement between OJK and the specific party receiving the cooperation. (3) Specific parties conducting cooperation must report the plan and implementation of part of the supervision tasks for Pawnshop Companies as referred to in paragraph (1) to OJK. (4) Provisions regarding cooperation between OJK and specific parties to implement part of the supervision functions for Pawnshop Companies as referred to in paragraph (1) and reporting of plans and implementation of supervision of Pawnshop Companies as referred to in paragraph (3) are further regulated in an OJK Circular Letter.

CHAPTER IX
REVOCATION OF BUSINESS LICENSES

Article 50
(1) Revocation of the business license of a Pawnshop Company is conducted by OJK.
(2) Revocation of the business license as referred to in paragraph (1) is conducted in the event that the Pawnshop Company:
a. dissolves due to bankruptcy; b. dissolves due to a decision of the General Meeting of Shareholders or Members, or according to the Articles of Association, its term expires;
c. dissolves due to merger, consolidation, or separation;
d. changes business activities so that it is no longer a Pawnshop Company; or e. is subject to an administrative sanction in the form of revocation of the business license. (3) Before the revocation of the business license is established by OJK, the Pawnshop Company is obligated to settle its obligations to Customers. (4) The procedure for settling obligations as referred to in paragraph (3) must be conducted in accordance with applicable laws and regulations and considering the interests of Customers.

Article 51
(1) A Pawnshop Company declared bankrupt is obligated to submit a report to OJK at the latest 20 (twenty) Days since the bankruptcy decision was established. (2) The report as referred to in paragraph (1) must be submitted by the Board of Directors of the Pawnshop Company using Format 11 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by documents:
a. documents serving as the basis for the establishment of the bankruptcy decision or dissolution decree; and b. photocopy of the business license as a Pawnshop Company. (3) Based on the report as referred to in paragraph (2), OJK revokes the business license of the Pawnshop Company.

Article 52
(1) A Pawnshop Company that will conduct dissolution as referred to in Article 50 paragraph (2) letter b or change business activities as referred to in Article 50 paragraph (2) letter d is obligated to obtain approval from OJK. (2) The application for approval of dissolution or change of business activities as referred to in paragraph (1) must be submitted by the Board of Directors of the Pawnshop Company using Format 12 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by documents:
a. draft deed of dissolution or draft deed of amendment to the Articles of Association containing plans for new business activities; and b. plan for settling rights and obligations. (3) A Pawnshop Company that has obtained approval for dissolution or change of business activities from OJK as referred to in paragraph (1) is obligated to report the dissolution or change of business activities at the latest 20 (twenty) Days since the date the dissolution deed was established or since the amendment to the Articles of Association was approved by the competent authority, using Format 13 as contained in the Appendix which is an integral part of this OJK Regulation, accompanied by documents:
a. minutes of the General Meeting of Shareholders or Members; b. amendment to the Articles of Association that has been approved by the competent authority; and
c. proof of settlement of rights and obligations.

Article 53
A Pawnshop Company whose business license has been revoked is prohibited from using the word "Gadai" (Pawn) or words characterizing Pawn activities in the company name.

Article 54
OJK may announce business actors who have been registered or hold a business license from OJK.

CHAPTER X
GOVERNMENT PAWNSHOP COMPANIES

Article 55
(1) Government Pawnshop Companies are deemed to have obtained a business license from OJK based on this OJK Regulation.
(2) The capital of Government Pawnshop Companies refers to applicable laws and regulations.
(3) Government Pawnshop Companies are exempt from the provisions of Article 4, Article 5, Article 6, Article 7, Article 8, Article 9, Article 11, Article 12, and Article 19 paragraph (3) of this OJK Regulation.

Article 56
(1) To obtain approval to conduct business activities based on Sharia Principles as referred to in Article 30 paragraph (1), Government Pawnshop Companies are obligated to establish a Sharia business unit. (2) The Sharia business unit as referred to in paragraph (1) is a working unit of the headquarters of Government Pawnshop Companies functioning as the parent office of offices conducting business activities based on Sharia Principles.

Article 57
(1) Government Pawnshop Companies that have Sharia business units are obligated to meet the following provisions:
a. having working capital set aside for Sharia business unit activities; b. having a head of the Sharia business unit responsible for the implementation of business activities based on Sharia Principles; and
c. having separate accounting for the Sharia business unit.
(2) The head of the Sharia business unit of Government Pawnshop Companies as referred to in paragraph (1) letter b is obligated to meet the following provisions:
a. appointed by the Board of Directors of the Government Pawnshop Company; and b. not holding concurrent positions in other functions other than those aimed at supporting the implementation of business activities based on Sharia Principles.

Article 58
To establish a Sharia business unit as referred to in Article 56 paragraph (1), the Board of Directors of the Government Pawnshop Company must submit an application for a Sharia business unit license to OJK, accompanied by:
a. the Articles of Association of the Government Pawnshop Company containing the intent and purpose of conducting business activities based on Sharia Principles; b. a decision letter from the General Meeting of Shareholders or Board of Directors, proving the existence of working capital set aside for the Sharia business unit;
c. DPS documents, including:

decision of the General Meeting of Shareholders regarding the appointment of the Sharia Supervisory Board (Dewan Pengawas Syariah - DPS); and
recommendation letter of the DPS from the National Sharia Board of the Indonesian Ulema Council (Dewan Syariah Nasional Majelis Ulama Indonesia - DSN-MUI);
d. documents of the head of the Sharia business unit, including:
decision letter of the Board of Directors of the Government Pawnshop Company regarding the appointment of the head of the Sharia business unit;
statement letter from the head of the Sharia business unit and acknowledged by the Board of Directors of the Government Pawnshop Company stating that the head of the Sharia business unit does not hold concurrent positions in other functions other than those aimed at supporting the implementation of business activities based on Sharia Principles; and
curriculum vitae of the head of the Sharia business unit, complete with the latest 4x6 cm color photo; and
e. sample of Pawn Certificate and/or forms based on Sharia Principles to be used.

Article 59
(1) Periodic reports as referred to in Article 35 paragraph (1) for Government Pawnshop Companies are reports on Sharia business units in the event that Government Pawnshop Companies have obtained licenses to open Sharia business units. (2) In addition to periodic reports as referred to in Article 35 paragraph (1), Government Pawnshop Companies are obligated to submit to OJK:
a. annual financial reports audited by public accountants at the latest 4 (four) months after the fiscal year ends; and b. monthly reports in accordance with applicable laws and regulations.

CHAPTER XI
SANCTIONS

Article 60
(1) Pawnshop Companies that do not fulfill the provisions as referred to in Article 2 paragraph (2), Article 3, Article 11 paragraph (1) and (2), Article 12 paragraph (1), Article 13 paragraph (4), Article 14 paragraph (2), Article 15, Article 16, Article 17 paragraph (1) and (2), Article 18, Article 19 paragraph (1) and (2), Article 20 paragraph (1) and (2), Article 21 paragraph (1), Article 22 paragraph (1), (2), and (3), Article 23 paragraph (1), (2), and (3), Article 24 paragraph (7) and (8), Article 25 paragraph (1) and (2), Article 27 paragraph (1) and (2), Article 28 paragraph (1) and (2), Article 29 paragraph (1) and (2), Article 30 paragraph (1) and (2), Article 32 paragraph (1), Article 33 paragraph (1), Article 34 paragraph (1), Article 35 paragraph (1), (2), (3), and (4), Article 36 paragraph (1) and (4), Article 37 paragraph (1), Article 38 paragraph (1), Article 39, Article 40 paragraph (1), Article 47 paragraph (1) and (2), Article 48 paragraph (4), (5), and (6), Article 50 paragraph (3) and (4), Article 51 paragraph (1), Article 52 paragraph (1) and (3), Article 56 paragraph (1), Article 57 paragraph (1) and (2), and Article 59 paragraph (2) of this OJK Regulation are subject to administrative sanctions in the form of:
a. warnings; b. suspension of business activities;
c. revocation of approval for conducting part of business activities based on Sharia Principles;
d. revocation of Sharia business unit licenses for Government Pawnshop Companies; and/or e. revocation of business licenses.

(2) Warnings as referred to in paragraph (1) letter a are given at most 3 (three) times consecutively with a time limit of at most 40 (forty) Days each. (3) In the event that before the end of the warning sanction time limit as referred to in paragraph (2), the Pawnshop Company has fulfilled the provisions as referred to in paragraph (1), OJK revokes the warning sanction. (4) In the event that the validity period of the third warning as referred to in paragraph (2) ends and the Pawnshop Company still does not fulfill the provisions as referred to in paragraph (1), OJK imposes sanctions for suspension of business activities. (5) Sanctions for suspension of business activities are given in writing and take effect from the date established for a time limit of at most 6 (six) months. (6) In the event that before the end of the suspension of business activities time limit as referred to in paragraph (5), the Pawnshop Company has fulfilled the provisions as referred to in paragraph (1), OJK revokes the sanctions for suspension of business activities. (7) In the event that by the end of the suspension of business activities time limit as referred to in paragraph (5), the Pawnshop Company still does not fulfill the provisions as referred to in paragraph (1), OJK conducts:
a. revocation of approval for conducting part of business activities based on Sharia Principles; b. revocation of Sharia business unit licenses for Government Pawnshop Companies; or
c. revocation of business licenses.

Article 61
(1) Business actors of Pawnshop businesses who have been registered with OJK and do not fulfill the provisions as referred to in Article 6 paragraph (2) and Article 7 paragraph (1) of this OJK Regulation are subject to sanctions in the form of warnings at most 2 (two) times consecutively with a time limit of at most 1 (one) month each. (2) In the event that before the end of the warning sanction time limit as referred to in paragraph (1), the business actor of Pawnshop business has fulfilled the provisions as referred to in paragraph (1), OJK revokes the warning sanction. (3) In the event that the validity period of the second warning as referred to in paragraph (1) ends and the business actor of Pawnshop business still does not fulfill the provisions as referred to in paragraph (1), OJK cancels the registration.

CHAPTER XII
TRANSITIONAL PROVISIONS

Article 62
Government Pawnshop Companies must adjust their business activities as regulated in Article 13 paragraph (1) and (2) at the latest 2 (two) years since this OJK Regulation was enacted.

Article 63
Business activities of Government Pawnshop Companies that have obtained OJK approval before this OJK Regulation was enacted are deemed to remain valid.

Article 64
Applications for licenses to open Sharia business units as referred to in Article 56 must be submitted by Government Pawnshop Companies to OJK at the latest 1 (one) year since this OJK Regulation was enacted.

CHAPTER XIII
CLOSING PROVISIONS

Article 65
This OJK Regulation takes effect upon enactment.

To ensure that everyone knows it, ordering the enactment of this OJK Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on July 29, 2016
CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, sd
MULIAMAN D. HADAD

Enacted in Jakarta on July 29, 2016
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, sd
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 152 Copy in accordance with the original Director of Legal Affairs 1 Legal Department sd Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHITY REGULATION
NUMBER 31/POJK.05/2016
ON
PAWNSHOP BUSINESS

I. GENERAL
Pawnshop businesses contribute to the Indonesian economy, particularly in providing financial services through the distribution of loan funds to the public with movable goods as collateral (Pawn/Gadai). The model of distributing loan funds through the Pawn system greatly assists the public in meeting cash needs quickly, easily, and with simple administration. In addition, through the distribution of loans by Pawnshop Companies conducted quickly, easily, and with simple administration, it is expected to become one of the solutions to help micro, small, and medium enterprise (MSME) actors in obtaining funding access. Pawnshop business activities conducted by Government Pawnshop Companies have been regulated and supervised by the Government since the Dutch East Indies Government era. Currently, Pawnshop businesses are also conducted by parties other than Government Pawnshop Companies, and their numbers are increasing. Law Number 21 of 2011 concerning the Financial Services Authority (OJK) has regulated that pawnshops are financial service institutions under the regulation and supervision of OJK. However, to date, there have been no laws and regulations regulating Pawnshop Business, so Pawnshop business activities have not been supervised. This condition is feared to cause losses to Customers. Based on these considerations, the existence of regulations regulating Pawnshop Business is deemed very urgent. This OJK Regulation contains the obligation of Pawnshop Companies to obtain a business license from OJK and minimum standards that must be met by Pawnshop Companies in conducting business activities.

II. ARTICLE BY ARTICLE

Article 1
Sufficiently clear.

Article 2
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Letter a
Sufficiently clear.
Letter b
What is meant by "local government" is Provincial Local Government or Regency/City Local Government.
Letter c
Sufficiently clear.
Letter d
Sufficiently clear.
Paragraph (3)
Sufficiently clear.

Article 3
Sufficiently clear.

Article 4
Paragraph (1)
What is meant by "business area scope" is the scope of offices or service units (outlets) of Pawnshop Companies in accordance with the business area mentioned in the business license from OJK. Paragraph (2) Sufficiently clear. Paragraph (3) Sufficiently clear.

Article 5
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Sufficiently clear.
Letter d
What is meant by "proof of having conducted business activities" includes, among others, letters of proof of business transaction activities that have been conducted. Letter e Sufficiently clear. Paragraph (6) Sufficiently clear. Paragraph (7) What is meant by "registered proof mark" is a letter stating that the company has been registered with OJK, as:
a. a Pawnshop business actor, for those conducting business activities conventionally; or b. a Sharia Pawnshop business actor, for those conducting all business activities based on Sharia Principles. Paragraph (8) Sufficiently clear.

Article 6
Paragraph (1)
Sufficiently clear.
Paragraph (2)
What is meant by "periodic reports" in this provision is the nearest periodic report period after the opening of service units (outlets).

Article 7
Paragraph (1)
The obligation to submit periodic reports is one form of OJK supervision over registered Pawnshop business actors.
Paragraph (2)
Sufficiently clear.

Article 8
Paragraph (1)
An example of this provision is:
This OJK Regulation was enacted on August 1, 2016.
A Pawnshop business actor submitted an application for registration and obtained a registered proof mark from OJK on December 1, 2017.
Based on this, the Pawnshop business actor has a remaining time to apply for a business license since being registered of 1 year 8 months and must apply for a business license at the latest on July 31, 2019. Paragraph (2) Sufficiently clear. Paragraph (3) Sufficiently clear. Paragraph (4) Sufficiently clear. Paragraph (5) Sufficiently clear.

Article 9
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Sufficiently clear.
Letter d
Sufficiently clear.
Letter e
Sufficiently clear.
Letter f
Sufficiently clear.
Letter g
Number 1
Sufficiently clear.
Number 2
What is meant by "inventory" includes, among others:
a. safes/vaults; b. gold testing tools; and
c. computers.
Number 3
Sufficiently clear.
Letter h
Sufficiently clear.
Letter i
Sufficiently clear.

Letter j
In the event that there is no professional certification body or other party designated by OJK as the issuer of Appraiser certifications, the Appraiser certificate can be replaced with a letter of work experience for at least 1 (one) year as an Appraiser at a Government Pawnshop, a Private Pawnshop, or a Sharia bank providing pawnshop services. Letter k Clearly stated. Letter l Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) Clearly stated. Paragraph (7) Clearly stated. Paragraph (8) Clearly stated. Paragraph (9) Clearly stated.
Article 10
Clearly stated.
Article 11
Clearly stated.
Article 12
Paragraph (1)
In the event of district/city regional expansion causing a service unit (outlet) of a Pawnshop to change its district/city status, the Pawnshop is exempt from this regulation. Paragraph (2) Clearly stated.
Article 13
Paragraph (1)
Pawnshop business activities under these regulations may be conducted via electronic media.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Letter a
The principle of justice (‘adl) refers to placing things in their proper place, giving things only to those entitled, and treating things according to their position. The principle of balance (tawazun) covers the balance of material and spiritual aspects, private and public aspects, financial sector and real sector, business and social aspects, and the balance of utilization and sustainability. The principle of public interest (maslahah) refers to all forms of goodness with worldly and hereafter dimensions, material and spiritual, individual and collective, and must meet 3 (three) elements: Sharia compliance (halal), beneficial and good (thoyib) in all aspects overall, without causing harm. The principle of universalism (alamiyah) can be carried out by, with, and for all interested parties (stakeholders) without discriminating against ethnicity, religion, race, and social groups, in accordance with the spirit of mercy for all worlds (rahmatan lil alamin).

Letter b
The term “gharar” refers to transactions where the object is unclear, unowned, unknown in existence, or cannot be delivered at the time of the transaction, unless otherwise regulated by Sharia. The term “maysir” refers to speculative (gambling) transactions not directly related to productivity in the real sector. The term “riba” refers to the assurance of unlawful (bathil) income addition, including in transactions of exchange of similar goods with unequal quality, quantity, and delivery time (fadhl), or in loan transactions requiring the recipient to return funds exceeding the principal due to the passage of time (nasiah). The term “zhulm” refers to transactions causing injustice to other parties. The term “risywah” refers to bribery in the form of money, facilities, or other forms violating the law to obtain facilities or ease in a transaction. Letter c Clearly stated. Paragraph (5) Clearly stated.
Article 14
Clearly stated.
Article 15
Clearly stated.
Article 16
Letter a
Clearly stated.

Letter b
The term “supervised” in this regulation means the Pawnshop has obtained a business license from OJK.
Letter c
Clearly stated.
Letter d
Loan interest rates can be calculated from 3 (three) components, namely:
a. principal cost for loans; b. overhead costs incurred by the Pawnshop in the loan provision process; and
c. profit margin set for Pawnshop activities.
The size of remuneration/returns for Pawnshops conducting business based on Sharia Principles can be calculated from, among others:
a. storage and/or maintenance costs; b. overhead costs incurred by the Pawnshop in the loan provision process;
c. profit margin set for Pawnshop activities; and
d. other mechanisms not contrary to Sharia Principles.
Article 17
Clearly stated.
Article 18
Letter a
The term “using Collateral” refers to taking benefit value from Collateral in forms such as for personal or company use, leasing, or lending.
Letter b
Clearly stated.

Letter c
Clearly stated.
Letter d
Clearly stated.
Article 19
Clearly stated.
Article 20
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
“Appraisal tools” include, among others, gold testing water, scales, diamond testing needles, gold testing needles, and testing stones.
Letter b
The term “fair market price of Collateral” refers to the price prevailing in the local market.
Article 21
Clearly stated.
Article 22
Clearly stated.
Article 23
Clearly stated.
Article 24
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.

Paragraph (3)
Letter a
The term “Customer sells Collateral themselves” refers to the Customer bringing a prospective buyer to the Pawnshop, without removing the Collateral from the Pawnshop’s possession. Letter b Clearly stated. Paragraph (4) Clearly stated. Paragraph (5) Clearly stated. Paragraph (6) This regulation aims to prevent Pawnshops from attempting to obtain prospective buyers at fair prices, which would harm the Customer. Paragraph (7) The term “direct purchase” refers to the Pawnshop or its employees purchasing Collateral directly from the Customer. The term “indirect purchase” refers to using third parties as intermediaries representing the interests of the Pawnshop or its employees, or purchasing the Customer’s Collateral directly from third parties. Paragraph (8) Clearly stated.
Article 25
Clearly stated.
Article 26
The term “applicable legislation” refers to the Staatsblad Year 1928 Number 81 regarding the Pandhuis Regleement.

Article 27
Paragraph (1)
Collateral belongs to the Customer. Therefore, if the proceeds from the sale of Collateral via Auction or power of sale are used to settle the Customer’s obligations to the Pawnshop and there is still Surplus Funds, such Surplus Funds must be returned to the Customer. Paragraph (2) The term “record separately” refers to creating a separate account in financial reports. Paragraph (3) Clearly stated.
Article 28
Clearly stated.
Article 29
Clearly stated.
Article 30
Clearly stated.
Article 31
Clearly stated.
Article 32
Clearly stated.
Article 33
Clearly stated.
Article 34
Clearly stated.
Article 35
Clearly stated.

Article 36
Clearly stated.
Article 37
Clearly stated.
Article 38
Clearly stated.
Article 39
Clearly stated.
Article 40
Clearly stated.
Article 41
Paragraph (1)
To implement supervision of Pawnshops, OJK assigns relevant work units located at the headquarters and OJK regional offices throughout Indonesia. Paragraph (2) Clearly stated.
Article 42
Clearly stated.
Article 43
Clearly stated.
Article 44
Clearly stated.
Article 45
Clearly stated.

Article 46
Clearly stated.
Article 47
Clearly stated.
Article 48
Clearly stated.
Article 49
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Further regulations in OJK Circular Letters include the scope of supervision tasks that can be assigned and the reporting procedures for plans and implementation of activities regarding Pawnshop supervision.
Article 50
Clearly stated.
Article 51
Clearly stated.
Article 52
Clearly stated.
Article 53
Clearly stated.
Article 54
Clearly stated.

Article 55
Paragraph (1)
Government Pawnshops have been supervised by OJK before this OJK Regulation takes effect. Therefore, Government Pawnshops do not need to submit new business license applications to OJK. Paragraph (2) The term “applicable legislation” in this regulation refers to Government Regulation Number 51 of 2011 regarding the Change of Legal Status of General Company (Perum) Pegadaian to Company Limited (Persero) and its amendments. Paragraph (3) Clearly stated.
Article 56
Clearly stated.
Article 57
Clearly stated.
Article 58
Clearly stated.
Article 59
Paragraph (1)
Clearly stated.
Paragraph (2)
Letter a
Clearly stated.
Letter b
The term “legislation” in this regulation includes, among others:
a. OJK Regulation regarding monthly reports of non-bank financial service institutions; and b. OJK Circular Letter regarding monthly reports of PT Pegadaian (Persero).

Article 60
Clearly stated.
Article 61
Clearly stated.
Article 62
Clearly stated.
Article 63
Clearly stated.
Article 64
Clearly stated.
Article 65
Clearly stated.
SUPPLEMENT TO THE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5913

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 31 /POJK.05/2016
REGARDING
PAWNSHOP BUSINESS

FORMAT 1 PAWNSHOP BUSINESS OPERATOR REGISTRATION APPLICATION To The Executive Supervisor of Insurance, Pensions, Financing Institutions, and Other Financial Service Institutions u.p. Director of Institutions and Non-Bank Financial Products / Director of Sharia Non-Bank Financial Products*) Menara Merdeka Building Jl. Budi Kemuliaan 1 No. 2 Jakarta 10110
Referring to Financial Services Authority Regulation Number /POJK.05/2016 regarding Pawnshop Business, we hereby submit a registration application for a Pawnshop Business Operator named .......
To complete the application, we submit the following documents:
a. deed of establishment of the business entity including articles of association and amendments (if any) approved by the competent authority or business proof from the competent authority; and/or proof of business from the competent authority; b. identity proof and curriculum vitae with the latest 4x6 cm color passport photos from:

owners except cooperatives;
Board of Directors members; and
Board of Commissioners members;
c. company domicile letter from the competent authority;
d. proof of business activities; and e. photos of service units (outlets) sized 4R/5R.
This is our application, and we thank you for your attention.

Sincerely,
PT/Cooperative/CV/Firm/UD/Other Form*).................
………………………………
*) For companies conducting conventional business, address to Director of Institutions and Non-Bank Financial Products; for companies conducting Sharia-based business, address to Director of Sharia Non-Bank Financial Products ) Cross out what is not needed *) Specify

FORMAT 2 PAWNSHOP BUSINESS LICENSE APPLICATION To The Executive Supervisor of Insurance, Pensions, Financing Institutions, and Other Financial Service Institutions u.p. Director of Institutions and Non-Bank Financial Products / Director of Sharia Non-Bank Financial Products*) Menara Merdeka Building Jl. Budi Kemuliaan 1 No. 2 Jakarta 10110 Referring to Financial Services Authority Regulation Number /POJK.05/2016 regarding Pawnshop Business, we hereby apply for a business license as a Private Pawnshop:
Name : PT/Cooperative) .....
Address : .....
City .....
Province .....
Phone/fax : .....
Email : .....
To complete the application, we submit the following documents:

deed of establishment of PT/Cooperative) ....., including the latest amended articles of association approved by the competent authority.
data of Board of Directors, Board of Commissioners, and/or Sharia Supervisory Board (DPS) members including:
a. photocopy of valid ID cards (KTP); b. photocopy of valid Taxpayer Identification Number (NPWP);
c. curriculum vitae with the latest 4x6 cm color passport photos; and
d. stamped statement letters from each Board of Directors, Board of Commissioners, and/or DPS member stating:

not listed in the bad credit list in the financial service sector;
not listed in the failed list (DTL) in the financial service sector;
never convicted of financial crimes and/or economic crimes based on final court decisions within the last 5 (five) years;
never convicted of criminal offenses based on final court decisions within the last 5 (five) years;
never declared bankrupt or declared guilty causing a business entity to be declared bankrupt based on final court decisions within the last 5 (five) years; and
never held shares, director, commissioner, or Sharia supervisory board position in financial service companies whose licenses were revoked due to violations within the last 5 (five) years;

shareholder or founding member data:
a. if shareholders or founding members are Indonesian citizens, attached documents include:

photocopy of tax return (SPT) for the last 1 (one) year;
documents as referred to in number 2 letter a, letter b, and letter c; and
stamped statement letter from the concerned party stating that:
a) capital contributions do not originate from loans; b) capital contributions do not originate from or for money laundering and financial crimes; c) not listed in the bad credit list in the financial service sector; d) not listed in the failed list (DTL) in the financial service sector; e) never convicted of financial crimes and/or economic crimes based on final court decisions within the last 5 (five) years; f) never convicted of criminal offenses based on final court decisions within the last 5 (five) years; g) never declared bankrupt or declared guilty causing a business entity to be declared bankrupt based on final court decisions within the last 5 (five) years; and h) never held shares, director, commissioner, or Sharia supervisory board position in financial service companies whose licenses were revoked due to violations within the last 5 (five) years; b. if shareholders or founding members are Indonesian legal entities, attached documents include:
deed of establishment including the latest articles of association (if any) approved by the competent authority or notified to the competent authority;
annual financial reports and the latest monthly financial reports;
documents as referred to in number 2 letter a, letter b, and letter c for directors; and
stamped statement letter from directors stating that:
a) capital contributions do not originate from loans; b) capital contributions do not originate from or for money laundering and financial crimes; c) no foreign ownership, direct or indirect; d) not listed in the bad credit list in the financial service sector; e) not listed in the failed list (DTL) in the financial service sector; f) never convicted of financial crimes and/or economic crimes based on final court decisions within the last 5 (five) years; g) never convicted of criminal offenses based on final court decisions within the last 5 (five) years; h) never declared bankrupt or declared guilty causing a business entity to be declared bankrupt based on final court decisions within the last 5 (five) years; and i) never held shares, director, commissioner, or Sharia supervisory board position in financial service companies whose licenses were revoked due to violations within the last 5 (five) years;
c. if the shareholder is the Republic of Indonesia, attached documents include Government Regulations regarding state capital participation for establishing a Pawnshop; and/or
d. if the shareholder is a regional government, attached documents include Regional Regulations regarding regional capital participation for establishing a Pawnshop;

photocopy of paid-up capital proof, including:
a. deposit slips from shareholders or founding members to the savings or current account of the Pawnshop; and b. Pawnshop bank statements from the date of capital deposit until the date of the license application letter;
organizational structure containing personnel composition with at least loan decision-making, Appraiser, Customer service, and administrative functions;
work plan for the first 1 (one) year containing at least:
a. description of business activities to be conducted; b. targets and steps to achieve said targets; and
c. financial report projections for 1 (one) year ahead;
operational readiness proof, including:
a. proof of ownership or control of office buildings or service units (outlets), including photocopy of ownership certificates, building use rights, or use rights in the name of the Pawnshop, or lease agreements for buildings/rooms accompanied by exterior photos, interior photos, and room layout; b. list of office inventory and equipment; and
c. sample Pawn Receipt and/or forms to be used;
photocopy of Taxpayer Identification Number (NPWP) in the name of the Pawnshop;
proof of payment of licensing fees;
Appraiser certificate issued by a professional certification body or other party designated by OJK as the Appraiser certification issuer;
DPS recommendation letter from the National Sharia Board of the Indonesian Ulema Council, for Pawnshops conducting business based on Sharia Principles; and
anti-money laundering and counter-terrorism financing implementation guidelines.
This is our application, and we thank you for your attention.

Board of Directors
PT/Cooperative) ................

.................................
*) For companies conducting conventional business, address to Director of Institutions and Non-Bank Financial Products; for companies conducting Sharia-based business, address to Director of Sharia Non-Bank Financial Products ) Cross out what is not needed

FORMAT 3 PAWNSHOP BUSINESS ACTIVITY IMPLEMENTATION REPORT To The Executive Supervisor of Insurance, Pensions, Financing Institutions, and Other Financial Service Institutions u.p. Director of Institutions and Non-Bank Financial Products / Director of Sharia Non-Bank Financial Products*) Menara Merdeka Building Jl. Budi Kemuliaan 1 No. 2 Jakarta 10110
Referring to Financial Services Authority Decision Letter Number ..... dated ..... regarding the issuance of a business license for Pawnshop business to PT/Cooperative) ....., we hereby report that we have commenced Pawnshop business activities on date .....
As supporting documents, we submit photocopies of Pawn Receipts signed by the company and Customers.
This report is submitted, and we thank you for your attention.
Board of Directors
PT/Cooperative) ................

.................................
*) For companies conducting conventional business, address to Director of Institutions and Non-Bank Financial Products ) Cross out what is not needed

To
The Executive Supervisor of Insurance, Pensions, Financing Institutions, and Other Financial Service Institutions u.p. Director of Sharia Non-Bank Financial Products Menara Merdeka Building Jl. Budi Kemuliaan 1 No. 2 Jakarta 10110 Referring to Financial Services Authority Regulation Number .../POJK.05/2016 regarding Pawnshop Business, we hereby apply for approval to conduct business activities based on Sharia Principles:
Name : PT/Cooperative*) .....
OJK Business License : Number.......... Date........
Address : Street........ Village/Sub-district..... District.....
City/Regency.... Province....
Phone/Fax :
Email :
To complete the application, we submit the following documents:
a. DPS recommendation letter or DPS training certification proof from the National Sharia Board of the Indonesian Ulema Council; b. curriculum vitae of employees responsible for Sharia-based business activities, with the latest 4x6 cm color passport photos; and
c. sample Pawn Receipt and/or forms based on Sharia Principles to be used.
For the purpose of this application, you may contact Mr./Ms.) ......, via email..... or phone number.....
This application is submitted, and we thank you for your attention.
Board of Directors
PT/Cooperative) ................

.................................
*) Cross out what is not needed
FORMAT 4 PAWNSHOP BUSINESS APPLICATION FOR APPROVAL TO CONDUCT BUSINESS ACTIVITIES BASED ON SHARIA PRINCIPLES

FORMAT 5 CAPITAL CHANGE REPORT
To
The Executive Supervisor of Insurance, Pensions, Financing Institutions, and Other Financial Service Institutions u.p. Director of Institutions and Non-Bank Financial Products / Director of Sharia Non-Bank Financial Products*) Menara Merdeka Building Jl. Budi Kemuliaan 1 No. 2 Jakarta 10110 We hereby:
Name : PT/Cooperative) ........................
Address : ..........................................
report that according to the General Meeting of Shareholders/Meeting of Members) dated .................., the articles of association regarding capital change have been amended, as follows:
Capital Before Change
After Change

Basic capital
Paid-up and placed capital with shareholder composition as follows:
No. Shareholder Name
Total Share Value Before Change (Rp)
Total Share Value After Change (Rp)

...
Reason for capital change: ……………………….
As supporting data, we submit:
a. amended articles of association with proof of approval from the competent authority received on date ……......*); b. minutes of the meeting of members and/or amended articles of association); and
c. statement letter that capital contributions do not originate from loans and/or money laundering crimes.
This report is submitted, and we thank you for your attention.
Board of Directors
PT/Cooperative) .................
………………………………
*) For companies conducting conventional business, address to Director of Institutions and Non-Bank Financial Products ) Cross out what is not needed *) This requirement is submitted for companies with Limited Liability Company (Perseroan Terbatas) legal status ) This requirement is submitted for companies with Cooperative (Koperasi) legal status

FORMAT 6 REPORT ON THE IMPLEMENTATION OF OFFICE ADDRESS CHANGE FOR PAWNSHOP COMPANIES

The Executive Head of the Supervisor of Insurance, Pension Funds, Financing Institutions and Other Financial Service Institutions

Attention: Director of Institutional Affairs and IKNB Products / Director of Sharia IKNB*)

Merdeka Tower Building
1 Budi Kemuliaan Street No. 2
Jakarta 10110

Hereby we report that our head office at ..... has been relocated with the following data:

Old Address : .....
Telephone : .....
New Address : .....
Telephone : .....
Date of relocation : .....

As supporting data, we hereby submit photocopies of the proof of building control for the new head office and photocopies of the Taxpayer Identification Number (NPWP) which includes the new head office address.

This report is submitted, and we thank you for your attention, Sir/Madam.

The Board of Directors
(PT/Cooperative) ................

.................................

*) For Companies conducting conventional business activities, address to:
) Cross out what is not needed

FORMAT 7 REPORT ON CHANGE OF PAWNSHOP COMPANY NAME

The Executive Head of the Supervisor of Insurance, Pension Funds, Financing Institutions and Other Financial Service Institutions

Attention: Director of Institutional Affairs and IKNB Products / Director of Sharia IKNB*)

Merdeka Tower Building
1 Budi Kemuliaan Street No. 2
Jakarta 10110

We hereby:
Name : (PT/Cooperative) ...................
Address : ..........................................

report that in accordance with the General Meeting of Shareholders/Members' Meeting dated ..................., a change to the company's articles of association regarding the name has been made, as follows:

Number and Date of Business
License Decision for Pawnshop Company
Old Name New Name

As supporting data, we hereby submit the following documents:

Articles of Association amendment accompanied by proof of approval from the competent authority, which approval was received on date …........…….*);
Minutes of the Members' Meeting and/or Articles of Association amendment);
and
Taxpayer Identification Number (NPWP) in the name of the new Pawnshop Company.

In this regard, we request your Sir/Madam) to establish the OJK decision on the business license change from (PT/Cooperative**) ......................... to (PT/Cooperative**) ........................

This is submitted, and we thank you for your attention, Sir/Madam).

The Board of Directors
(PT/Cooperative) ................

.................................
*) For Companies conducting conventional business activities, address to:
) Cross out what is not needed
*) This requirement is submitted for companies with legal status as Limited Liability Companies (Perseroan Terbatas) ) This requirement is submitted for companies with legal status as Cooperatives

FORMAT 8 REPORT ON THE IMPLEMENTATION OF MERGER OR ABSORPTION

The Executive Head of the Supervisor of Insurance, Pension Funds, Financing Institutions and Other Financial Service Institutions

Attention: Director of Institutional Affairs and IKNB Products / Director of Sharia IKNB*)

Merdeka Tower Building
1 Budi Kemuliaan Street No. 2
Jakarta 10110

We hereby:
Name : (PT/Cooperative) ...................
Address : ..........................................

report that in accordance with the General Meeting of Shareholders/Members' Meeting dated ..................., a Merger/Absorption**) between (PT/Cooperative**) ................................. and (PT/Cooperative**)............................... has been carried out, resulting in (PT/Cooperative**) .................................... which is a Pawnshop Company.

As supporting data, we hereby submit the following documents:

Minutes of the General Meeting of Shareholders/Members' Meeting);
Deed of the result of the merger/absorption**) which has been approved/notarized**) by the competent authority, which approval/notarization) was received on date ………..........;
Deed of establishment of the Pawnshop Company resulting from the absorption which has been notarized by the competent authority; and
Data of shareholders/members, in the event there are new shareholders/members.

In this regard, we request your Sir/Madam) to establish the Decision of the Board of Commissioners of the Financial Services Authority regarding the business license for the Pawnshop Company to (PT/Cooperative) ......................... which is the result of the Absorption between (PT/Cooperative**) .......................... and (PT/Cooperative**) .........................*)

This report is submitted, and we thank you for your attention, Sir/Madam).

The Board of Directors
(PT/Cooperative) ................

.................................
*) For Companies conducting conventional business activities, address to:
) Cross out what is not needed
*) Choice according to the form of legal entity

FORMAT 9 REPORT ON THE IMPLEMENTATION OF TAKEOVER

The Executive Head of the Supervisor of Insurance, Pension Funds, Financing Institutions and Other Financial Service Institutions

Attention: Director of Institutional Affairs and IKNB Products / Director of Sharia IKNB*)

Merdeka Tower Building
1 Budi Kemuliaan Street No. 2
Jakarta 10110

We hereby:
Name : (PT/Cooperative) ...................
Address : ..........................................

report that in accordance with the General Meeting of Shareholders/Members' Meeting dated ..................., a Takeover has been carried out between (PT/Cooperative**) ................................. resulting in (PT/Cooperative**) .................................... which is a Pawnshop Company.

As supporting data, we hereby submit the following documents:

Minutes of the General Meeting of Shareholders/Members' Meeting);
Deed of takeover; and
Data of founding shareholders/members.

This report is submitted, and we thank you for your attention, Sir/Madam).

The Board of Directors
(PT/Cooperative) ................

.................................
*) For Companies conducting conventional business activities, address to:
) Cross out what is not needed

FORMAT 10 REPORT ON SEPARATION

The Executive Head of the Supervisor of Insurance, Pension Funds, Financing Institutions and Other Financial Service Institutions

Attention: Director of Institutional Affairs and IKNB Products / Director of Sharia IKNB*)

Merdeka Tower Building
1 Budi Kemuliaan Street No. 2
Jakarta 10110

We hereby:
Name : (PT/Cooperative) ...................
Address : ..........................................

report that in accordance with the General Meeting of Shareholders/Members' Meeting of the Pawnshop Company on date ......................, the separation of (PT/Cooperative**) ……........……. to (PT/Cooperative**) ……...............… and (PT/Cooperative) ……........…., has been carried out, with the following supporting documents:

Minutes of the General Meeting of Shareholders/Members' Meeting) approving the separation; and
Deed of separation.

This report is submitted, and we thank you for your attention, Sir/Madam).

The Board of Directors
(PT/Cooperative) ................

.................................

*) For Companies conducting conventional business activities, address to:
) Cross out what is not needed

FORMAT 11 REPORT ON BANKRUPTCY/DISSOLUTION OF PAWNSHOP COMPANY

The Executive Head of the Supervisor of Insurance, Pension Funds, Financing Institutions and Other Financial Service Institutions

Attention: Director of Institutional Affairs and IKNB Products / Director of Sharia IKNB*)

Merdeka Tower Building
1 Budi Kemuliaan Street No. 2
Jakarta 10110

Referring to Financial Services Authority Regulation Number /POJK.05/2016 concerning Pawnshop Business, we hereby report the dissolution:

Name : (PT/ Cooperative) .....
Address : .....
City .....
Province .....
Telephone/fax No. : .....
Email : .....

To complete the aforementioned report, we hereby submit the following documents:

Documents serving as the basis for the determination of the bankruptcy ruling or the determination of dissolution; and
Photocopy of the business license as a Pawnshop Company.

This is our report, and we thank you for your attention, Sir/Madam).

The Board of Directors
(PT/Cooperative) ................

.................................
*) For Companies conducting conventional business activities, address to:
) Cross out what is not needed

FORMAT 12 APPLICATION FOR APPROVAL OF DISSOLUTION OR CHANGE OF BUSINESS ACTIVITY

The Executive Head of the Supervisor of Insurance, Pension Funds, Financing Institutions and Other Financial Service Institutions

Attention: Director of Institutional Affairs and IKNB Products / Director of Sharia IKNB*)

Merdeka Tower Building
1 Budi Kemuliaan Street No. 2
Jakarta 10110

We hereby:
Name : (PT/ Cooperative) .....
Address : .....
City .....
Province .....
Telephone/fax No. : .....
Email : .....

submit an application to obtain approval for the plan to dissolve the Pawnshop Company or an application for approval of dissolution or change of business activity).

To complete the aforementioned application, we hereby submit the following documents:

Draft deed of dissolution or draft deed of amendment of articles of association containing the plan for the new business activity; and
Plan for the settlement of rights and obligations.

This application is submitted, and we thank you for your attention, Sir/Madam).

The Board of Directors
(PT/Cooperative) ................

.................................

*) For Companies conducting conventional business activities, address to:
) Cross out what is not needed

FORMAT 13 REPORT ON CHANGE OF BUSINESS ACTIVITY

The Executive Head of the Supervisor of Insurance, Pension Funds, Financing Institutions and Other Financial Service Institutions

Attention: Director of Institutional Affairs and IKNB Products / Director of Sharia IKNB*)

Merdeka Tower Building
1 Budi Kemuliaan Street No. 2
Jakarta 10110

Referring to Financial Services Authority Regulation Number /POJK.05/2016 concerning Pawnshop Business, we hereby submit a report on the change of business activity so that it is no longer a Pawnshop Company, for:

Name : (PT/ Cooperative) .....
Address : .....
City .....
Province .....
Telephone/fax No. : .....
Email : .....

To complete the aforementioned report, we hereby submit the following documents:

Minutes of the General Meeting of Shareholders/Members' Meeting);
Articles of Association amendment which has been approved by the competent authority; and
Proof of settlement of rights and obligations.

This report is submitted, and we thank you for your attention, Sir/Madam).

The Board of Directors
(PT/Cooperative) ................

.................................
*) For Companies conducting conventional business activities, address to:
) Cross out what is not needed

Determined in Jakarta on 29 July 2016
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY,

signed
MULIAMAN D. HADAD

Copy matches the original
Director of Law 1
Law Department signed
Yuliana

POJK on Pawnshop Business

Lineage: Superseded

Timeline