POJK on Reporting by the Depository and Clearing Institution

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 44 /POJK.04/2016
CONCERNING
REPORTING BY THE DEPOSITORY AND CLEARING INSTITUTION

BY THE GRACE OF GOD THE ALMIGHTY,
THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that with the enactment of Law Number 21 of 2011 concerning the Financial Services Authority, as of December 31, 2012, the functions, duties, and authority for regulation and supervision of financial services activities in the Capital Market sector, including those related to Reporting by the Depository and Clearing Institution, have transferred from the Capital Market and Financial Institution Supervisory Agency to the Financial Services Authority; b. that in order to provide clarity and certainty regarding regulations on Reporting by the Depository and Clearing Institution, regulations on Reporting by the Depository and Clearing Institution issued prior to the establishment of the Financial Services Authority need to be changed into a Financial Services Authority Regulation;
c. that based on considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Reporting by the Depository and Clearing Institution;

Considering:

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

DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING REPORTING BY THE DEPOSITORY AND CLEARING INSTITUTION.

CHAPTER I
GENERAL PROVISIONS

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

1. Depository and Clearing Institution is a Party that organizes Central Custodian activities for Custodian Banks, Securities Companies, and other Parties.
2. Exchange Transaction is a contract made by Stock Exchange Members in accordance with requirements determined by the Stock Exchange regarding the sale and purchase of Securities, borrowing and lending of Securities, or other contracts regarding Securities or the price of Securities.

CHAPTER II
TYPES OF REPORTS

Article 2
The Depository and Clearing Institution is required to submit activity reports to the Financial Services Authority which include:
a. daily reports regarding mutations in custody and settlement of Exchange Transactions; b. monthly reports containing:

1. recapitulation of activities during the period accompanied by statistics on the development of custody and settlement volume;
2. reports regarding the number of Issuers whose Securities listings in the Issuer's register of shareholders are represented by the Depository and Clearing Institution; and
3. activities of users of the Depository and Clearing Institution's services;
   c. semi-annual financial reports and annual financial reports that have been audited by an Accountant registered with the Financial Services Authority, accompanied by the Accountant's opinion;
   d. reports on budget realization and profit utilization; e. reports on the organization of the General Meeting of Shareholders; f. reports regarding changes in the status of users of the Depository and Clearing Institution's services; g. reports regarding the imposition of sanctions by the Depository and Clearing Institution on users of its services; h. reports regarding special events such as financial difficulties of users of the Depository and Clearing Institution's services; and
   i. reports on the position of customer Securities accounts regarding ownership of 5% (five percent) or more of shares and any changes in ownership of shares of the Issuer or Public Company referred to in Securities accounts at the Depository and Clearing Institution, which must contain at least:
4. name of the Securities account holder;
5. name of the customer (holder of the sub-Securities account), domicile (if any), and nationality (for legal entities, state the country where the legal entity was established);
6. name of the Issuer or Public Company issuing the shares;
7. percentage of share ownership before the change, after the change, and the change itself at the time of reporting from the total shares issued by the Issuer or Public Company; and
8. date of book transfer in the sub-Securities account or the date of first recording in the sub-Securities account for shares newly listed in collective custody at the Depository and Clearing Institution.

CHAPTER III
SUBMISSION OF REPORTS BY THE DEPOSITORY AND CLEARING INSTITUTION

First Section
Electronic Documents

Article 3
Submission of activity reports by the Depository and Clearing Institution to the Financial Services Authority as referred to in Article 2 can be done via printed documents or in the form of electronic documents.

Article 4
Receipt of activity reports submitted by the Depository and Clearing Institution as referred to in Article 2 and Article 3 by the Financial Services Authority is calculated based on the time the report is received by the Financial Services Authority in the form of printed documents or electronic documents.

Second Section
Time Limits for Submission and Announcement of Reports

Article 5
Daily reports regarding mutations in custody and settlement of Exchange Transactions as referred to in Article 2 letter a must be submitted to the Financial Services Authority no later than on the next business day.

Article 6
(1) Monthly reports as referred to in Article 2 letter b include the quantity and type of Securities mutated and other information requested by the Financial Services Authority related to its function as a Depository and Clearing Institution. (2) Monthly reports as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than on the 12th (twelfth) day of the following month.

Article 7
(1) Semi-annual financial reports must be submitted to the Financial Services Authority no later than 60 (sixty) days from the end of the period.
(2) Annual financial reports must be submitted to the Financial Services Authority no later than 90 (ninety) days from the end of the fiscal year.
(3) Semi-annual financial reports and annual financial reports as referred to in paragraph (1) and paragraph (2) must be announced in at least 2 (two) daily newspapers in the Indonesian language, one of which has national circulation, within 30 (thirty) days from the date of the relevant Accountant's report. (4) In the event that the Accountant provides an opinion other than a clean opinion without qualification for the semi-annual financial reports and annual financial reports as referred to in paragraph (1) and paragraph (2), the Financial Services Authority may summon Board of Directors members and/or conduct examinations to obtain further information.

Article 8
Reports on budget realization and profit utilization as referred to in Article 2 letter d must be prepared quarterly and submitted to the Financial Services Authority through the Board of Commissioners, with the provision that the reports are submitted cumulatively on a quarterly basis and received by the Financial Services Authority no later than on the 12th (twelfth) day after the end of the relevant quarter.

Article 9
Reports on the organization of the General Meeting of Shareholders as referred to in Article 2 letter e must be submitted to the Financial Services Authority no later than 2 (two) business days after the date of the General Meeting of Shareholders of the Depository and Clearing Institution.

Article 10
Reports regarding changes in the status of users of the Depository and Clearing Institution's services as referred to in Article 2 letter f must be submitted to the Financial Services Authority no later than 2 (two) business days after the change occurs.

Article 11
Reports regarding the imposition of sanctions by the Depository and Clearing Institution on users of its services and reports regarding special events as referred to in Article 2 letters g and h must be submitted to the Financial Services Authority no later than on the next business day.

Article 12
Reports regarding ownership and any changes in ownership of shares of the Issuer or Public Company as referred to in Article 2 letter i must be submitted to the Financial Services Authority with a copy to the Stock Exchange in Indonesia where the shares are listed and to the Clearing and Guarantee Institution no later than on the next business day after the book transfer or after recording for shares first recorded in the sub-Securities account at the Depository and Clearing Institution.

Article 13
The Stock Exchange is required to announce the report as referred to in Article 12 on the Stock Exchange's electronic reporting system accessible to the public at any time no later than on the next business day after the Stock Exchange receives the copy of the report.

Article 14
In the event that the time limit for submission of reports as referred to in Article 6, Article 7 paragraph (1) and (2), and Article 8 falls on a holiday, the reports must be submitted on the next business day.

CHAPTER IV
SANCTION PROVISIONS

Article 15
(1) Without prejudice to criminal provisions in the Capital Market sector, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties causing the violation, in the form of:
a. written warning; b. fine, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business license; f. cancellation of approval; and g. cancellation of registration.
(2) Administrative sanctions as referred to in paragraph (1) letters b, c, d, e, f, or g may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of a fine as referred to in paragraph (1) letter b may be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (1) letters c, d, e, f, or g.

Article 16
In addition to administrative sanctions as referred to in Article 15 paragraph (1), the Financial Services Authority may take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.

Article 17
The Financial Services Authority may announce the imposition of administrative sanctions as referred to in Article 15 paragraph (1) and specific actions as referred to in Article 16 to the public.

CHAPTER V
CLOSING PROVISIONS

Article 18
Upon the commencement of this Financial Services Authority Regulation, the Decision of the Chairman of the Capital Market and Financial Institution Supervisory Agency Number Kep-182/BL/2009 dated June 30, 2009 concerning Reporting by the Depository and Clearing Institution, along with Regulation Number X.C.1 which is its attachment, is repealed and declared invalid.

Article 19
This Financial Services Authority Regulation shall come into force on the date of its enactment.

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

Established in Jakarta on December 2, 2016
CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY,

signed
MULIAMAN D. HADAD

Promulgated in Jakarta on December 7, 2016
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,

signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2016 NUMBER 273

Copy in accordance with the original
Director of Law 1
Department of Law

signed
Yuliana

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 44 /POJK.04/2016
CONCERNING
REPORTING BY THE DEPOSITORY AND CLEARING INSTITUTION

I. GENERAL
That as of December 31, 2012, the functions, duties, and authority for regulation and supervision of financial services activities in the Capital Market, Insurance, Pension Fund, Financing Institutions, and Other Financial Service Institutions sectors have transferred from the Minister of Finance and the Capital Market and Financial Institution Supervisory Agency to the Financial Services Authority.

In relation to the above, it is necessary to reorganize the existing regulatory structure, particularly those related to the Capital Market sector, by converting Capital Market-related regulations of the Capital Market and Financial Institution Supervisory Agency into Financial Services Authority Regulations. This reorganization is carried out so that there are Financial Services Authority Regulations related to the Capital Market sector that are consistent with Financial Services Authority Regulations in other sectors.

Based on the background and aspects mentioned, it is necessary to replace the legislation in the Capital Market sector regulating Reporting by the Depository and Clearing Institution, namely the Decision of the Chairman of the Capital Market and Financial Institution Supervisory Agency Number Kep-182/BL/2009 dated June 30, 2009 concerning Reporting by the Depository and Clearing Institution along with Regulation Number X.C.1 which is its attachment, into a Financial Services Authority Regulation concerning Reporting by the Depository and Clearing Institution.

II. ARTICLE BY ARTICLE

Article 1
Clear enough.

Article 2
Clear enough.

Article 3
Clear enough.

Article 4
Clear enough.

Article 5
Clear enough.

Article 6
Clear enough.

Article 7
Clear enough.

Article 8
Clear enough.

Article 9
Clear enough.

Article 10
Clear enough.

Article 11
Clear enough.

Article 12
Clear enough.

Article 13
Clear enough.

Article 14
Clear enough.

Article 15
Clear enough.

Article 16
Clear enough.

Article 17
Clear enough.

Article 18
Clear enough.

Article 19
Clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5969