POJK on the Conduct of Business of Microfinance Institutions

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 13 /POJK.05/2014
ON
THE CONDUCT OF BUSINESS OF MICROFINANCE INSTITUTIONS BY THE GRACE OF GOD ALMIGHTY THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: that in order to implement the provisions of Article 15, Article 21 paragraph (4), Article 32, and Article 33 paragraph (3) of Law Number 1 of 2013 concerning Microfinance Institutions, it is necessary to establish a Financial Services Authority Regulation concerning the Conduct of Business of Microfinance Institutions; 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. Law Number 1 of 2013 concerning Microfinance Institutions (State Gazette of the Republic of Indonesia Year 2013 Number 12, Supplement to the State Gazette of the Republic of Indonesia Number 5394);
3. Government Regulation Number 89 of 2014 concerning Loan Interest Rates or Financing Returns and the Scope of Business Operations of Microfinance Institutions) (State Gazette of the Republic of Indonesia Year 2014 Number 321, Supplement to the State Gazette of the Republic of Indonesia Number 5616);
DECIDES:
Establishing: FINANCIAL SERVICES AUTHABILITY REGULATION CONCERNING THE CONDUCT OF BUSINESS OF MICROFINANCE INSTITUTIONS.

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

1. Microfinance Institution, hereinafter abbreviated as MFI, is a financial institution specifically established to provide business development services and community empowerment, either through loans or financing in micro-scale businesses to members and the public, managing deposits, or providing business development consulting services, which is not solely profit-seeking.
2. Loan is the provision of funds by the MFI to the public that must be repaid as agreed.
3. Financing is the provision of funds by the MFI to the public that must be repaid as agreed based on Sharia principles.
4. Deposits are funds entrusted by the public to the MFI in the form of savings and/or fixed deposits based on a fund storage agreement.
5. Depositor is the party that places its funds with the MFI based on an agreement.
6. Sharia Principles are Islamic legal provisions based on fatwas or statements of Sharia compliance from the National Sharia Board of the Indonesian Ulema Council (DSN MUI).
7. Board of Directors:
   a. for MFIs in the form of a Limited Liability Company (Perseroan Terbatas), refers to the board of directors as stipulated in legislation concerning limited liability companies; b. for MFIs in the form of a Cooperative Legal Entity, refers to the managers as stipulated in legislation concerning cooperatives.
8. Board of Commissioners:
   a. for MFIs in the form of a Limited Liability Company (Perseroan Terbatas), refers to the board of commissioners as stipulated in legislation concerning limited liability companies; b. for MFIs in the form of a Cooperative Legal Entity, refers to the supervisors as stipulated in legislation concerning cooperatives.
9. Financial Services Authority, hereinafter abbreviated as OJK, is an independent institution free from the interference of other parties that has the function, duties, and authority for regulation, supervision, examination, and investigation as stipulated in the Law concerning the OJK.

CHAPTER II
BUSINESS ACTIVITIES
First Section
General
Article 2
(1) MFI business activities include business development and community empowerment services, either through Loans or Financing in micro-scale businesses to members and the public, managing Deposits, or providing business development consulting services. (2) Business activities as referred to in paragraph (1) may be conducted conventionally or based on Sharia Principles. Second Section Disbursement of Loans or Financing
Article 3
(1) In carrying out business activities for the disbursement of Loans or Financing as referred to in Article 2 paragraph (1), MFIs must conduct an analysis of the feasibility of disbursing Loans or Financing. (2) The disbursement of Loans or Financing as referred to in paragraph (1) is conducted in the context of business development and community empowerment.
Article 4
(1) In carrying out business activities for the disbursement of Loans or Financing to members or the public, MFIs must establish the maximum interest rate for Loans or the maximum return for Financing to be applied, in accordance with applicable legislation. (2) MFIs must report the maximum interest rate for Loans or the maximum return for Financing as referred to in paragraph (1) to the OJK every 4 (four) months. (3) The report as referred to in paragraph (2) must be submitted no later than the last week of April, August, and December according to the format in Appendix I, which is an integral part of this OJK Regulation. (4) In the event that an MFI intends to increase the maximum interest rate for Loans or the maximum return for Financing before the reporting period as referred to in paragraph (2) ends, the MFI must first report to the OJK according to the format in Appendix II, which is an integral part of this OJK Regulation. (5) MFIs are prohibited from applying Loan interest rates or Financing returns exceeding the maximum interest rate for Loans or the maximum return for Financing as referred to in paragraph (1) and paragraph (4).
Article 5
MFIs must announce the maximum interest rate for Loans or the maximum return for Financing as referred to in Article 4 through a local daily newspaper or an announcement board at the MFI office that is easily accessible to the public.
Article 6
(1) The minimum limit for Loans or Financing served by MFIs is Rp50,000 (fifty thousand Rupiah).
(2) MFIs are prohibited from rejecting the minimum limit for Loans or Financing as referred to in paragraph (1).
Article 7
(1) MFIs must at all times meet the maximum limit for providing Loans or Financing to each customer.
(2) The maximum limit for providing Loans or Financing as referred to in paragraph (1) is established as follows:
a. maximum 10% (ten percent) of the MFI's capital for customer groups; b. maximum 5% (five percent) of the MFI's capital for 1 (one) customer. (3) The MFI's capital as referred to in paragraph (2) is calculated from:
a. the sum of paid-in capital, additional paid-in capital, reserves, grants, and retained earnings or losses in the event that the MFI is in the form of a limited liability company; or b. the sum of principal deposits, mandatory deposits, reserve funds, grants, and surplus of business results, in the event that the MFI is in the form of a cooperative legal entity.
Article 8
(1) MFIs must conduct quality assessments of disbursed Loans or Financing.
(2) The quality assessment of Loans or Financing as referred to in paragraph (1) is established into 3 (three) groups, namely:
a. healthy; b. doubtful; and
c. non-performing (bad).
(3) Provisions regarding the measurement parameters for the quality of Loans or Financing are contained in Appendix III, which is an integral part of this OJK Regulation.
Article 9
MFIs must form loan loss reserves at minimum:
a. 0% (zero percent) of Loans or Financing with healthy quality; b. 50% (fifty percent) of Loans or Financing with doubtful quality; and
c. 100% (one hundred percent) of Loans or Financing with non-performing (bad) quality.
Third Section
Management of Deposits
Article 10
In carrying out business activities for the management of Deposits as referred to in Article 2 paragraph (1), MFIs must administer Depositor Deposits and provide proof of Deposits.
Article 11
(1) MFIs are prohibited from rejecting the minimum value limit for the opening of Deposits.
(2) The minimum value limit as referred to in paragraph (1) is established at Rp5,000 (five thousand Rupiah).

CHAPTER III
FUNDING SOURCES
Article 12
(1) MFI funding sources may only originate from:
a. equity; b. Deposits;
c. loans; and/or
d. grants.
(2) MFIs are prohibited from receiving loans as referred to in paragraph (1) letter c except from Indonesian citizens and/or business entities established and operating within the territory of the Republic of Indonesia based on a loan agreement.

CHAPTER IV
AGREEMENTS USED IN BUSINESS ACTIVITIES AND FUNDING SOURCES BASED ON SHARIA PRINCIPLES
Article 13
(1) MFIs conducting business activities based on Sharia Principles must use agreements in accordance with Sharia Principles.
(2) Agreements in accordance with Sharia Principles as referred to in paragraph (1) include:
a. business activities for raising Deposits are conducted using wadiah, mudharabah, or other agreements not contrary to Sharia Principles and approved by the OJK. b. business activities for disbursing Financing are conducted using mudharabah, musyarakah, murabahah, ijarah, salam, istishna, ijarah muntahiah bit tamlik, or other agreements not contrary to Sharia Principles and approved by the OJK.
c. business services for providing consulting and business development are conducted using ijarah, ju'alah, or other agreements not contrary to Sharia Principles and approved by the OJK.
d. funding activities through receiving loans are conducted using qordh, mudharabah, musyarakah, or other agreements not contrary to Sharia Principles and approved by the OJK. (3) To obtain approval as referred to in paragraph (2), MFIs must submit a request to the OJK attaching a fatwa from the DSN MUI. (4) In addition to conducting business activities as referred to in paragraph (1) and paragraph (2), MFIs conducting business activities based on Sharia Principles may manage social funds in the form of zakat, infak, and sodaqoh. (5) Accounting for the management of social funds as referred to in paragraph (4) must be conducted separately.
Article 14
Further provisions regarding the agreements as referred to in Article 13 are regulated by an OJK Circular Letter.

CHAPTER V
HEALTH OF MFIs
Article 15
MFIs must maintain health levels through the fulfillment of liquidity and solvency ratios.
Article 16
(1) The liquidity ratio as referred to in Article 15 is calculated using a cash ratio that compares cash and cash equivalents owned with current liabilities. (2) For MFIs conducting business activities based on Sharia Principles, the liquidity ratio as referred to in paragraph (1) is calculated using a cash ratio that compares cash and cash equivalents owned with third-party funds according to generally accepted Sharia financial accounting standards. (3) MFIs must maintain a liquidity ratio of at least 3% (three percent).
Article 17
(1) The solvency ratio as referred to in Article 15 is calculated by comparing total assets with total liabilities.
(2) MFIs must maintain a solvency ratio as referred to in paragraph (1) of at least 110% (one hundred ten percent).

CHAPTER VI
PLACEMENT OF FUNDS
Article 18
(1) MFIs may only place excess funds they possess in:
a. savings at banks; and/or b. fixed-term deposits and/or certificates of deposit at banks.
(2) For MFIs conducting business activities based on Sharia Principles, excess funds in the form of savings, fixed-term deposits, and/or certificates of deposit must be placed in conventional Sharia banks, Sharia business units, and/or Sharia microfinance banks. (3) In the event that conventional Sharia banks, Sharia business units, and/or Sharia microfinance banks are not present in the MFI's business area, the MFI may place its excess funds in conventional banks.

CHAPTER VII
PROCEDURES FOR OBTAINING INFORMATION ABOUT DEPOSITORS AND DEPOSITS AT MFIs
Article 19
MFIs are prohibited from disclosing information regarding Depositor and Deposit data unless provided for the interests of:
a. taxation; b. judicial proceedings in criminal cases;
c. judicial proceedings in civil cases; or
d. information requests from legal heirs in the event that the Depositor has passed away.
Article 20
(1) Requests to open information related to Depositor and Deposit data concerning taxation interests are submitted based on a written request from the Ministry/agency overseeing taxation to the OJK, stating:
a. the name and position of the tax official; b. the name of the Depositor as the taxpayer;
c. the name of the MFI where the Depositor holds Deposits; and
d. the information requested along with the reasons for its necessity.
(2) The written request as referred to in paragraph (1) is submitted by the head of the local tax office.
(3) Approval or rejection of the request as referred to in paragraph (1) is granted by the OJK within a maximum period of 15 (fifteen) working days after the request letter is received completely and correctly.
Article 21
(1) Requests to open information related to Depositor and Deposit data concerning judicial proceedings in criminal cases are submitted based on a written request from the Prosecutor's Office, Police, or Court to the OJK, stating:
a. the name and position of the prosecutor, police officer, or judge; b. the name of the Depositor as witness, suspect, or defendant;
c. the name of the MFI where the Depositor holds Deposits;
d. the information requested; and e. the relationship of the criminal case concerned with the information needed and the reasons for its necessity. (2) The written request as referred to in paragraph (1) is submitted by the head of the prosecutor's office, head of the police, and chairman of the court. (3) Approval or rejection of the request as referred to in paragraph (1) is granted by the OJK within a maximum period of 15 (fifteen) working days after the request letter is received completely and correctly. (4) Specifically for serious criminal cases such as terrorism and corruption offenses, the issuance of written orders or permits to open information is implemented by the OJK within a maximum period of 10 (ten) working days after the request letter is received completely and correctly.
Article 22
Opening information related to Depositor and Deposit data for judicial proceedings in civil cases does not require a written order or permit from the OJK.
Article 23
Requests for information related to Depositor and Deposit data from legal heirs in the event that the Depositor has passed away do not require permission from the OJK.
Article 24
MFIs are prohibited from providing Depositor and Deposit information without OJK approval, except in the event of information requests as referred to in Article 22 and Article 23 of this OJK Regulation.

CHAPTER VIII
PERIODIC REPORTING
Article 25
(1) MFIs must submit periodic financial reports every 4 (four) months for periods ending on April 30, August 31, and December 31 to the OJK. (2) The submission of financial reports as referred to in paragraph (1) must be done no later than the end of the following month. (3) In the event that an MFI obtains a business license less than 4 (four) months from the obligation to submit reports as referred to in paragraph (1), the reporting obligation as referred to in paragraph (2) applies starting from the next financial report submission period. (4) In the event that the deadline for submitting financial reports as referred to in paragraph (2) falls on a holiday, the submission deadline is the next working day.
Article 26
(1) In order to implement the principle of transparency, MFIs must announce financial position reports and brief financial performance reports for each calendar year period through a local daily newspaper or on an announcement board at the respective MFI office that is easily accessible to the public no later than 4 (four) months after the calendar year ends. (2) In the event that an MFI obtains a business license less than 6 (six) months until the end of the calendar year, the announcement obligation as referred to in paragraph (1) applies in the following calendar year. (3) Proof of announcement of financial position reports and brief financial performance reports as referred to in paragraph (1) must be reported to the OJK no later than 20 (twenty) working days after the announcement date.
Article 27
Provisions regarding MFI financial reports as referred to in Article 25 are regulated by an OJK Circular Letter.

CHAPTER IX
PROHIBITIONS
Article 28
In conducting business activities, MFIs are prohibited from:
a. accepting Deposits in the form of checking accounts and participating in payment transactions; b. conducting business activities in foreign currency;
c. conducting insurance business as insurers;
d. acting as guarantors; e. providing Loans or Financing to other MFIs, except in the context of overcoming liquidity difficulties for other MFIs within the same regency/city; f. disbursing Loans or Financing outside the scope of their business area; and/or g. conducting business outside the business activities as referred to in Article 2 of this OJK Regulation.

CHAPTER X
PROCEDURES FOR MFI HEALTH RECOVERY
Article 29
(1) In the event that an MFI experiences liquidity and solvency difficulties that endanger its business continuity, the OJK may take actions to:
a. shareholders or members increase capital; b. shareholders or the general meeting of members replace the Board of Directors and/or Board of Commissioners of the MFI;
c. the MFI write off non-performing Loans or Financing and account for losses against its capital;
d. the MFI merge or consolidate with another MFI; e. MFI ownership is transferred to another party willing to assume all obligations; f. the MFI hands over the management of all or part of its activities to another party; and/or g. the MFI sells part or all of its assets and/or liabilities to another MFI or party. (2) Liquidity and solvency deemed to endanger the business continuity of the MFI as referred to in paragraph (1) occurs when the liquidity ratio is less than 3% (three percent) and the solvency ratio is less than 100% (one hundred percent). (3) Actions as referred to in paragraph (1) are carried out within a maximum period of 6 (six) months from the date of notification from the OJK to carry out health recovery actions. (4) The OJK may extend the period as referred to in paragraph (3) by 1 (one) time for a maximum period of 6 (six) months. (5) In the event that actions as referred to in paragraph (1) cannot overcome liquidity and solvency difficulties as referred to in paragraph (2), the OJK revokes the business license of the concerned MFI and orders the Board of Directors of the MFI to immediately hold a general meeting of shareholders or a general meeting of members to dissolve the legal entity of the MFI and form a liquidation team. (6) Provisions regarding the dissolution of MFIs and the formation of liquidation teams as referred to in paragraph (5) are regulated separately in an OJK Regulation concerning MFI Business Licensing and Institutional Matters.

CHAPTER XI
SANCTIONS
Article 30
(1) MFIs that do not comply with the provisions in Article 3 paragraph (1), Article 4 paragraph (2), Article 4 paragraph (3), Article 4 paragraph (4), Article 4 paragraph (5), Article 5, Article 6 paragraph (2), Article 7 paragraph (1), Article 8 paragraph (1), Article 9, Article 10, Article 11 paragraph (1), Article 13 paragraph (1), Article 26 paragraph (3), and Article 28 of this OJK Regulation are subject to administrative sanctions in the form of written warnings. (2) Written warning sanctions as referred to in paragraph (1) are given a maximum of 3 (three) consecutive times, with each validity period being 40 (forty) working days. (3) In the event that before the validity period of the written warning sanction as referred to in paragraph (2) ends, the MFI has complied with the provisions as referred to in paragraph (1), the OJK, the local Regency/City Government, or another party designated by the OJK withdraws the written warning sanction. (4) In the event that the validity period of the third written warning as referred to in paragraph (2) ends and the MFI still does not comply with the provisions as referred to in paragraph (1), the OJK requests shareholders or the cooperative general meeting of members to replace the Board of Directors of the MFI within a maximum period of 6 (six) months from the date of notification from the OJK. (5) In the event that the period as referred to in paragraph (4) ends and the general meeting of shareholders or general meeting of members does not replace the Board of Directors of the MFI as referred to, the OJK dismisses the Board of Directors of the MFI and subsequently appoints and appoints a temporary replacement until the general meeting of shareholders or general meeting of members of the Cooperative appoints a permanent replacement with OJK approval.
Article 31
(1) MFIs that do not comply with the provisions in Article 25 paragraph (1) of this OJK Regulation are subject to administrative sanctions in the form of fines. (2) The imposition of administrative sanctions in the form of fines as referred to in paragraph (1) is applied with the following provisions:
a. for MFIs whose business scope covers 1 (one) village/sub-district, a fine of Rp10,000.00 (ten thousand Rupiah) is imposed for each day of delay and a maximum of Rp 500,000.00 (five hundred thousand Rupiah); b. for MFIs whose business scope covers 1 (one) district, a fine of Rp20,000.00 (twenty thousand Rupiah) is imposed for each day of delay and a maximum of Rp1,000,000.00 (one million Rupiah);
c. for MFIs whose business scope covers 1 (one) Regency/City, a fine of Rp50,000.00 (fifty thousand Rupiah) is imposed for each day of delay and a maximum of Rp2,500,000.00 (two million five hundred thousand Rupiah);
(3) In order to impose administrative sanctions in the form of fines as referred to in paragraph (1), the submission date of the report is:
a. the date of receipt by the OJK, the local Regency/City Government, or another party designated by the OJK, if the report is submitted directly; or b. the date of dispatch in proof of dispatch via the post office or shipping service company, if the report is not submitted directly. (4) Fines as referred to in paragraph (1) must be deposited to the OJK. (5) In the event that the MFI has not paid the fine as referred to in paragraph (1), the fine is stated as a debt of the MFI to the OJK and must be included in the financial reports of the concerned MFI.
Article 32
(1) In the event that an MFI cannot comply with the provisions in Article 12 paragraph (2), Article 16 paragraph (3), Article 17 paragraph (2), Article 18 paragraph (1), and Article 18 paragraph (2) of this OJK Regulation, the OJK issues a written notice to the MFI to comply with the provisions within a maximum period of 40 (forty) working days from the date of notification from the OJK. (2) If the period as referred to in paragraph (1) has ended and the MFI cannot comply with the provisions as referred to in Article 12 paragraph (2), Article 18 paragraph (1), and Article 18 paragraph (2) of this OJK Regulation, the concerned MFI is subject to administrative sanctions as referred to in Article 30 of this OJK Regulation.

CHAPTER XII
TRANSITIONAL PROVISIONS
Article 33
The imposition of administrative sanctions as referred to in Article 30 and Article 31 of this OJK Regulation for Village Banks, Village Granaries, Market Banks, Employee Banks, Village Credit Bodies (BKD), District Credit Bodies (BKK), Small People's Business Credit (KURK), District Credit Institutions (LPK), Village Production Banks (BKPD), Rural Credit Business Entities (BUKP), Baitul Maal wa Tamwil (BMT), Baitul Tamwil Muhammadiyah (BTM), and/or other institutions that are considered equivalent and have operated before the implementation of Law Number 1 of 2013 concerning...

regarding Microfinance Institutions and has obtained a business license from OJK, it shall take effect after 3 (three) years calculated from the effective date of this OJK Regulation.

CHAPTER XIII
CLOSING PROVISIONS

Article 34
This OJK Regulation shall take effect on January 8, 2015.

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

Established in Jakarta on October 31, 2014

CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY,
Signed,
MULIAMAN D. HADAD

Promulgated in Jakarta on November 11, 2014

MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,
Signed,
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2014 NUMBER 343

A copy in accordance with the original
Director of Law 1
Ministry of Law,
Signed,
Tini Kustini

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 13/POJK.05/2014
ON
THE CONDUCT OF BUSINESS BY MICROFINANCE INSTITUTIONS

I. GENERAL

The financial services sector is a sector that is interconnected with almost all sectors in the national economy. Although the performance of the financial sector in Indonesia in recent times has shown significant growth, equitable growth has not yet been achieved because, in reality, the accessibility of low-income communities and micro-entrepreneurs to financing facilities, especially from banks, remains very low. Limited access to the banking sector can become an entry point for informal creditors who apply high interest rates. Thus, to meet the need for affordable financial services, especially for low-income communities and micro-entrepreneurs, the existence of financial institutions that specialize in empowering low-income communities and micro-entrepreneurs becomes very important.

The Government has established Law Number 1 of 2013 on Microfinance Institutions (MFIs) on January 8, 2013. The Law on MFIs mandates several further technical regulatory matters regarding MFI business activities, procedures for obtaining information regarding depositors and deposits, and the guidance, regulation, and supervision of MFIs in the form of Financial Services Authority Regulations. This is because, based on the mandate of the Law on MFIs which states that the Financial Services Authority is the authority that guides, regulates, and supervises MFIs. Therefore, with the establishment of regulations regarding the conduct of business activities by OJK, it is hoped that MFIs can continue to contribute to empowering low-income communities and micro-entrepreneurs while still paying attention to prudential aspects and protection for customers.

In relation to this, the Financial Services Authority establishes the Financial Services Authority Regulation on the Conduct of Business by Microfinance Institutions.

II. ARTICLE BY ARTICLE

Article 1
Quite clear

Article 2
Quite clear

Article 3
Quite clear

Article 4
Quite clear

Article 5
Quite clear

Article 6
Paragraph (1)
In the application of the minimum loan or financing value limit that must be served, it is not closed to the possibility for MFIs to disburse Loans or Financing below the value of Rp50,000 (fifty thousand rupiah).

Paragraph (2)
Quite clear

Article 7
Paragraph (1)
Quite clear

Paragraph (2)
What is meant by group customers, for example, customers who come from farming groups, fishing groups, etc.

Paragraph (3)
Quite clear

Article 8...

Article 8
Quite clear

Article 9
Quite clear

Article 10
Quite clear

Article 11
Paragraph (1)
Quite clear

Paragraph (2)
In the application of the minimum value limit for opening Deposits that must be served, it is not closed to the possibility for MFIs to serve the opening of Deposits below the value of Rp5,000 (five thousand rupiah).

Article 12
What is meant by equity is the excess of the MFI's assets after being reduced by all liabilities as stated in the financial position report, taking into account the provision for write-off of Loans or Financing. The financial position report is part of the financial statements of an entity generated in an accounting period that shows the financial position of the entity at the end of that period (formerly the balance sheet).

Article 13
Paragraph (1)
Quite clear

Paragraph (2)
Quite clear

Paragraph (3)
Quite clear

Paragraph (4)...

Paragraph (4)
The management of social funds in the form of zakat, infak, and sodaqoh conducted by MFIs that conduct business activities based on Sharia Principles must be carried out separately from the activities of collecting Deposits and disbursing Financing, which are the main activities of the respective MFI.

Paragraph (5)
Quite clear

Article 14
Quite clear

Article 15
Quite clear

Article 16
Paragraph (1)
What is meant by cash and cash equivalents includes cash, savings, time deposits, and certificates of deposit. Whereas current liabilities include Deposits and Loans received and must be paid within a period of less than 1 (one) year.

Paragraph (2)
Quite clear

Paragraph (3)
Quite clear

Article 17
Quite clear

Article 18
Paragraph (1)
Banks include commercial banks, Sharia commercial banks, Sharia business units, rural banks, and Sharia rural financing banks.

Paragraph (2)
Quite clear

Article 19...

Article 19
Quite clear

Article 20
Quite clear

Article 21
Paragraph (1)
Quite clear

Paragraph (2)
What is meant by:
a. Prosecution leadership includes the Head of District Prosecutor's Office, Head of High Prosecutor's Office, and Attorney General; b. Police leadership includes the Head of District/City Police Resort, Head of Regional Police, Head of the Indonesian National Police;
c. Court Chairmen include the Head of District Court, Head of High Court, Chairman of the Supreme Court.

Paragraph (3)
Quite clear

Paragraph (4)
Quite clear

Article 22
Quite clear

Article 23
Quite clear

Article 24
Quite clear

Article 25
Quite clear

Article 26
Paragraph (1)
The financial position report is part of the financial statements of an entity generated in an accounting period that shows the financial position of the entity at the end of that period (formerly the balance sheet). Whereas the financial performance report is part of the financial statements of an entity generated in an accounting period that shows the elements of company income and expenses (formerly the income statement).

Paragraph (2)
Quite clear

Paragraph (3)
Quite clear

Article 27
Quite clear

Article 28
Quite clear

Article 29
Quite clear

Article 30
Quite clear

Article 31
Quite clear

Article 32
Quite clear

Article 33
Quite clear

Article 34
Quite clear

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 5622

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

APPENDIX I
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 13 /POJK.05/2014
ON
THE CONDUCT OF BUSINESS BY MICROFINANCE INSTITUTIONS

EXAMPLE FORMAT OF QUARTERLY MAXIMUM LOAN INTEREST RATE OR MAXIMUM FINANCING YIELD REPORT

To the Honorable,
Head of Executive Supervisor of IKNB, Financial Services Authority Through OJK Office/Regent/Mayor/Other parties designated by OJK *)……… Jl ……………….. ………………..

Referring to Financial Services Authority Regulation Number ..../POJK.05/2014 on the Conduct of Business by Microfinance Institutions, hereby we submit the maximum interest rate for Loans / maximum yield for Financing*) for the 4 (four) monthly period ending in month ...... namely:

No. Type
Loan/Financing*)
Tenor/Duration)
Maximum Interest Rate / Maximum Yield *) *)

1. ..... 1......
   2......
   3......
   1......
   2......
   3......
2. ..... 1......
   2......
   3......
   1......
   2......
   3......

Thus we submit this report and for your attention, Sir/Madam*), we express our gratitude.
........, date, month, year
Board of Directors
PT/Cooperative*) MFI/Sharia MFI*) .....

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

*) Strike out what is not needed
) Number of days/weeks/months/fortnights/seasons/years *) Percentage per day/week/month/fortnight/season/year

Established in Jakarta on October 31, 2014

CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY,
Signed,
MULIAMAN D. HADAD

A copy in accordance with the original
Director of Law 1
Ministry of Law,
Signed,
Tini Kustini

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

APPENDIX II
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 13 /POJK.05/2014
ON
THE CONDUCT OF BUSINESS BY MICROFINANCE INSTITUTIONS

EXAMPLE FORMAT OF REPORT ON CHANGES IN MAXIMUM LOAN INTEREST RATE OR MAXIMUM FINANCING YIELD

To the Honorable,
Head of Executive Supervisor of IKNB, Financial Services Authority Through OJK Office/Regent/Mayor/Other parties designated by OJK *)……… Jl ……………….. ………………..

Referring to Financial Services Authority Regulation Number .../POJK.05/2014 on the Conduct of Business by Microfinance Institutions, hereby we submit the change in maximum interest rate for Loans / maximum yield for Financing*) for the 4 (four) monthly period ending in month .... , originally:

No. Type
Loan/Financing*)
Tenor/Duration)
Maximum Interest Rate / Maximum Yield *) *)

1. ..... 1......
   2......
   3......
   1......
   2......
   3......
2. ..... 1......
   2......
   3......
   1......
   2......
   3......

into:

No. Type
Loan/Financing*)
Tenor/Duration)
Maximum Interest Rate / Maximum Yield *) *)

1. ..... 1......
   2......
   3......
   1......
   2......
   3......
2. ..... 1......
   2......
   3......
   1......
   2......
   3......

As for the change in maximum interest rate for Loans / maximum yield for Financing*) mentioned, it is done with the consideration of .....

Thus we submit this report and for your attention, Sir/Madam*), we express our gratitude.
........, date, month, year
Board of Directors
PT/Cooperative*) MFI/Sharia MFI*) .....

..............................
*) Strike out what is not needed
) Number of days/weeks/months/fortnights/seasons *) Percentage per day/week/month/fortnight/season/year

Established in Jakarta on October 31, 2014

CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY,
Signed,
MULIAMAN D. HADAD

A copy in accordance with the original
Director of Law 1
Ministry of Law,
Signed,
Tini Kustini

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA

APPENDIX III
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 13 /POJK.05/2014
ON
THE CONDUCT OF BUSINESS BY MICROFINANCE INSTITUTIONS

COLLECTIBILITY CRITERIA

Tenor Type
Collectibility
Description
≤ 1
Year
Performing loan balance that has no outstanding principal/interest installments Doubtful loan balance that has outstanding principal/interest installments as follows:

• For daily, weekly, up to 3 months after the due date has passed, and
• For monthly/fortnightly/seasonal/farming loans, up to 6 months after the due date has passed.
  Non-performing loan balance that has outstanding principal/interest installments as follows:
• For daily, weekly, more than 3 months after the due date has passed, and
• For monthly/fortnightly/seasonal/farming loans, more than 6 months after the due date has passed.

Tenor Type
Collectibility
Description

1
Year
Performing loan balance that has outstanding principal/interest installments up to 3 months after the due date has passed.
Doubtful loan balance that has outstanding principal/interest installments more than 3 months and up to 9 months after the due date has passed. Non-performing loan balance that has outstanding principal/interest installments more than 9 months after the due date has passed.

Established in Jakarta on October 31, 2014

CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY,
Signed,
MULIAMAN D. HADAD

A copy in accordance with the original
Director of Law 1
Ministry of Law,
Signed,
Tini Kustini