POJK on Procedures for Collecting Administrative Penalties in the Form of Fines in the Financial Services Sector

EXTRACT
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER: 4/POJK.04/2014
CONCERNING
PROCEDURES FOR THE COLLECTION OF ADMINISTRATIVE PENALTIES IN THE FORM OF FINES IN THE FINANCIAL SERVICES SECTOR BY THE GRACE OF GOD THE ALMIGHTY THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY, Considering: a. that based on Article 8 letter i of Law Number 21 of 2011 concerning the Financial Services Authority, the Financial Services Authority has the authority to establish regulations regarding the procedures for imposing sanctions in accordance with applicable legislation in the financial services sector; b. that based on the considerations referred to in letter a, it is necessary to establish a Financial Services Authority Regulation concerning Procedures for the Collection of Administrative Penalties in the Form of Fines in the Financial Services Sector; Recalling: 1. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
2. Government Regulation Number 11 of 2014 Concerning Levies by the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2014 Number 33, Supplement to the State Gazette of the Republic of Indonesia Number 5504);
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
DECIDES...

DECIDES:
Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING PROCEDURES FOR THE COLLECTION OF ADMINISTRATIVE PENALTIES IN THE FORM OF FINES IN THE FINANCIAL SERVICES SECTOR.

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

1. 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.
2. Every Person is an individual or corporation conducting activities in the financial services sector.
3. Financial Services Sector is a sector encompassing Banking, Capital Market, Insurance, Pension Funds, Financing Institutions, and Other Financial Service Institutions.
4. Administrative Penalty in the Form of Fine is a sanction requiring the payment of a certain amount of money to the OJK as a consequence of violating legislation in the Financial Services Sector.
5. Interest is a certain amount of money that arises and must be paid by Every Person subject to an Administrative Penalty in the Form of Fine as a consequence of failing to fulfill the fine payment obligation within the established time frame.

CHAPTER II
PAYMENT OBLIGATIONS
Article 2
The OJK establishes the collection of Administrative Penalties in the Form of Fine in accordance with the provisions regulated in this Financial Services Authority Regulation.

Article 3
Every Person subject to an Administrative Penalty in the Form of Fine is obligated to make payment to the OJK by:
a. deposit into the OJK account; or b. other payment methods established by the OJK.

Article 4
(1) The implementation of payment as referred to in Article 3 letter a must be carried out at the latest 30 (thirty) days after the Administrative Penalty in the Form of Fine letter is established.
(2) The implementation of payment for Commercial Banks subject to an Administrative Penalty in the Form of Fine is carried out by the OJK through the debit of the Commercial Bank's current account for the benefit of the OJK's account at Bank Indonesia.

CHAPTER III
DEBT COLLECTION AND MANAGEMENT OF BAD DEBTS
Article 5
(1) In the event that Every Person, except Commercial Banks, subject to an Administrative Penalty in the Form of Fine submits an objection request to the OJK, the obligation to pay the Administrative Penalty in the Form of Fine is temporarily suspended from the receipt of the objection request letter until the decision on the objection request is established. (2) Commercial Banks subject to an Administrative Penalty in the Form of Fine as referred to in paragraph (1) may submit an objection request to the OJK after the debit of the Commercial Bank's current account for the benefit of the OJK's account at Bank Indonesia has been carried out. (3) In the event that part or all of the objection as referred to in paragraph (1) is rejected in its entirety, or accepted in its entirety or partially but still results in a fine payment obligation for the objector, the objector is obligated to pay the Administrative Penalty in the Form of Fine in accordance with the value established in the OJK's response letter within a period of at the latest 30 (thirty) days... ...days after the OJK's response letter to the objection request is established.

Article 6
(1) Every Person subject to an Administrative Penalty in the Form of Fine who has already made payment may submit an objection with the provisions as referred to in Article 5.
(2) In the event that part or all of the objection as referred to in paragraph (1) is rejected in its entirety, or accepted in its entirety or partially but still results in a fine payment obligation for the objector, the objector is obligated to pay the Administrative Penalty in the Form of Fine in accordance with the value established in the OJK's response letter within a period of at the latest 30 (thirty) days after the OJK's response letter to the objection request is established. (3) Payments already made as referred to in paragraph (1) are credited against the value of the Administrative Penalty in the Form of Fine established in the OJK's response letter. (4) If the payment as referred to in paragraph (1) exceeds the value of the Administrative Penalty in the Form of Fine established in the OJK's response letter, the overpayment difference will be returned by the OJK. (5) If the payment as referred to in paragraph (1) is less than the value of the Administrative Penalty in the Form of Fine established in the OJK's response letter, the underpayment difference must be paid within the time frame as referred to in paragraph (2).

Article 7
(1) In the event that the Administrative Penalty in the Form of Fine is not fully paid within the time frame as referred to in Article 4 paragraph (1) and Article 5 paragraph (3), the OJK issues a first warning letter to immediately settle the Administrative Penalty in the Form of Fine plus Interest within a period of at the latest 30 (thirty) days after the expiration of the payment period for the Administrative Penalty in the Form of Fine as referred to in the sanction imposition letter or the response letter to the objection request. (2) The amount of Interest as referred to in paragraph (1) is established at 2% (two percent) per month of the Administrative Penalty in the Form of Fine amount established by the OJK and at most 48% (forty-eight percent) of the Administrative Penalty in the Form of Fine amount established by the OJK, with the provision that any part of a month is calculated as 1 (one) month. (3) In the event that the Administrative Penalty in the Form of Fine plus Interest is not fully paid within the time frame as referred to in paragraph (1), the OJK issues a second warning letter to Every Person subject to the Administrative Penalty in the Form of Fine to immediately settle the fine plus Interest within a period of at the latest 30 (thirty) days after the expiration of the first warning letter period as referred to in paragraph (1).

Article 8
In the context of collecting Administrative Penalties in the Form of Fine and/or Interest on unpaid administrative sanctions, the OJK may impose additional administrative sanctions and/or specific measures on Every Person who does not or delays making payment of the Administrative Penalty in the Form of Fine and/or Interest on such fine.

Article 9
In the event that the Administrative Penalty in the Form of Fine and/or Interest is not fully paid within a period of 1 year after the Administrative Penalty in the Form of Fine is established, the OJK categorizes the Administrative Penalty in the Form of Fine and/or Interest as bad debts.

Article 10
(1) In the event that the final payment deadline for the Administrative Penalty in the Form of Fine as referred to in Article 4 paragraph (1) and Article 5 paragraph (3) falls on a holiday, the payment of the Administrative Penalty in the Form of Fine may be carried out at the latest on the next working day. (2) In the event that the final payment deadline for the Administrative Penalty in the Form of Fine and Interest as referred to in Article 7 paragraph (1) and Article 7 paragraph (3) falls on a holiday, the payment of the Administrative Penalty in the Form of Fine and Interest may be carried out at the latest on the next working day.

Article 11
In the event that the Administrative Penalty in the Form of Fine plus Interest is categorized as bad debts as referred to in Article 9, the OJK refers its management to the State Debt Management Committee.

CHAPTER IV
CLOSING PROVISIONS
Article 12
(1) Provisions regarding the payment of Administrative Penalties in the Form of Fine as referred to in Article 3 are carried out in accordance with the levy payment mechanism regulated by the OJK.
(2) Other implementation provisions of this Financial Services Authority Regulation will be further regulated by an OJK Circular Letter.

Article 13
At the time this Financial Services Authority Regulation comes into force:
a. The Decision of the Chairman of the Capital Market Supervisory Board Number: Kep-21/PM/1999 dated August 5, 1999 concerning Procedures for the Collection of Administrative Penalties in the Form of Fines is revoked and declared invalid; and b. Legislation regulating the collection of administrative penalties in the form of fines in the Financial Services Sector is declared to remain in force insofar as it does not conflict with the provisions in this Financial Services Authority Regulation.

Article 14
This Financial Services Authority Regulation comes into force on the date of its promulgation.

To ensure that everyone knows it, orders the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on April 1, 2014
CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY,
Signed.
MULIAMAN D. HADAD
Promulgated in Jakarta
On April 1, 2014
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,
Signed.
AMIR SYAMSUDIN
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2014 NUMBER 67 Copy in accordance with the original Head of Legal Assistance Division Legal Directorate, Signed.
Mufli Asmawidjaja