Policy on Relaxation of Reporting Obligations for Securities Institutions and Orders to Stock Exchanges, Clearing and Guarantee Institutions, and Custody and Settlement Institutions Regarding Market Performance and Stability Due to COVID-19

To:

1. Board of Directors of the Stock Exchange;
2. Board of Directors of the Clearing and Guarantee Institution;
3. Board of Directors of the Custody and Settlement Institution;
4. Board of Directors of the Alternative Market Organizer;
5. Board of Directors of Securities Companies;
6. Board of Directors of Securities Brokers for Debt Securities and Sukuk;
7. Board of Directors of the Investor Protection Fund Organizer;
8. Board of Directors of the Securities Price Valuation Institution; and
9. Board of Directors of the Securities Financing Institution,

at their respective locations.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 29 /SEOJK.04/2021

CONCERNING

POLICY ON RELAXATION OF REPORTING OBLIGATIONS FOR SECURITIES INSTITUTIONS AND ORDERS TO STOCK EXCHANGES, CLEARING AND GUARANTEE INSTITUTIONS, AND CUSTODY AND SETTLEMENT INSTITUTIONS REGARDING SECURITIES TRANSACTIONS IN MAINTAINING CAPITAL MARKET PERFORMANCE AND STABILITY DUE TO THE SPREAD OF CORONA VIRUS DISEASE 2019

In connection with the provisions of Article 3 paragraph (1) letter b and letter f of Financial Services Authority Regulation Number 7/POJK.04/2021 concerning Policies in Maintaining Capital Market Performance and Stability Due to the Spread of Corona Virus Disease 2019 (State Gazette of the Republic of Indonesia Year 2021 Number 81, Supplement to the State Gazette of the Republic of Indonesia Number 6671), it is necessary to regulate a policy on the relaxation of reporting obligations for securities institutions, namely stock exchanges, clearing and guarantee institutions, custody and settlement institutions, alternative market organizers, securities companies, securities brokers for debt securities and sukuk, investor protection fund organizers, securities price valuation institutions, and securities financing institutions, as well as to issue orders to stock exchanges, clearing and guarantee institutions, and/or custody and settlement institutions to establish regulations and/or policies that support the realization of capital market stability in this Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

1. In this Financial Services Authority Circular Letter, the following terms are defined as:
   a. Party means an individual, company, joint venture, association, or organized group. b. Securities means negotiable instruments, namely debt acknowledgment instruments, commercial paper, shares, bonds, debt certificates, investment contract unit participation, futures contracts over Securities, and every derivative of Securities.
   c. Stock Exchange means a Party that organizes and provides systems and/or facilities to match buy and sell offers of Securities from other Parties with the aim of trading Securities among them.
   d. Custody and Settlement Institution means a Party that organizes central custody activities for custodian banks, Securities Companies, and other Parties. e. Clearing and Guarantee Institution means a Party that organizes clearing and guarantee services for exchange transaction settlement. f. Investor Protection Fund Organizer means a limited liability company that has obtained a business license from the Financial Services Authority to organize and manage the investor protection fund. g. Securities Financing Institution means a Party that conducts securities transaction financing business activities. h. Securities Price Valuation Institution means a Party that conducts Securities price valuation to determine fair market prices.
   i. Securities Company means a Party that conducts business activities as a Securities underwriter, Securities broker, and/or investment manager.
   j. Securities Broker means a Party that conducts Securities buying and selling business activities for its own behalf or for other Parties. k. Securities Underwriter means a Party that makes a contract with the issuer to conduct a public offering for the benefit of the issuer with or without the obligation to purchase unsold remaining Securities.
   l. Securities Broker for Debt Securities and Sukuk, hereinafter referred to as PPE-EBUS, is a Party that conducts debt securities and sukuk buying and selling business activities for its own behalf and/or its clients.
   m. Stock Exchange Member means a securities broker that has obtained a business license from the Financial Services Authority and has the right to use the Stock Exchange's system and/or facilities in accordance with Stock Exchange regulations. n. Alternative Market Organizer, hereinafter abbreviated as PPA, is a Party that organizes, provides, or uses electronic systems to continuously match Securities transactions over debt securities and/or sukuk among service users outside the Stock Exchange. o. Securities Transaction Reporting Recipient, hereinafter abbreviated as PLTE, is a Party appointed by the Financial Services Authority to provide systems and/or facilities and receive securities transaction reports. p. Short Selling Transaction means a securities transaction where the Securities sold are not owned by the seller at the time the transaction is executed. q. Public Offering is the activity of offering Securities conducted by the issuer to sell Securities to the public based on procedures regulated in the Capital Market Law and its implementing regulations.

2. Pressure on the performance of capital market industry players and capital market stability as a result of the spread of corona virus disease 2019 (COVID-19) affects securities transaction activities in the Capital Market, so it is necessary to issue a policy on the relaxation of reporting obligations for Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, PPAs, Securities Companies, Securities Brokers for Debt Securities and Sukuk, Investor Protection Fund Organizers, Securities Price Valuation Institutions, and Securities Financing Institutions, and to order Stock Exchanges, Clearing and Guarantee Institutions, and/or Custody and Settlement Institutions to adjust regulations in securities transaction activities.

3. Relaxation of regulations in securities transaction activities is expected to support the realization of Capital Market stability.

II. RELAXATION OF REPORTING OBLIGATIONS FOR SECURITIES INSTITUTION ACTIVITIES

1. Regulations regarding the deadline for submitting annual financial reports for Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, PPAs, Securities Companies including accountant reports on adjusted net working capital annually, Investor Protection Fund Organizers, Securities Price Valuation Institutions, and Securities Financing Institutions are extended by 2 (two) months from the deadline for the end of the reporting obligation as referred to in legislation in the Capital Market sector, which previously applied based on Financial Services Authority Letter Number: S-92/D.04/2020 dated March 18, 2020 concerning Relaxation of Reporting Obligations and Implementation of Annual General Meetings of Shareholders.

2. Regulations regarding the deadline for submitting annual financial reports of guarantee funds for Clearing and Guarantee Institutions and annual financial reports of investor protection funds for Investor Protection Fund Organizers are extended by 1 (one) month from the deadline for the end of the reporting obligation as referred to in legislation in the Capital Market sector.

3. Regulations regarding the deadline for submitting interim financial reports for Stock Exchanges, Clearing and Guarantee Institutions, and Custody and Settlement Institutions are extended by 1 (one) month from the deadline for the end of the interim financial reporting obligation as referred to in legislation in the Capital Market sector.

4. Regulations regarding the deadline for submitting interim financial reports of investor protection funds for Investor Protection Fund Organizers are extended by 1 (one) month from the deadline for the end of the interim financial reporting obligation as referred to in legislation in the Capital Market sector.

5. Regulations regarding the deadline for submitting interim financial reports for Securities Companies are extended by 1 (one) month from the deadline for the end of the interim financial reporting obligation as referred to in legislation in the Capital Market sector, which previously applied based on Financial Services Authority Letter Number: S-205/D.04/2020 dated August 3, 2020 concerning Relaxation of Interim Financial Reporting Obligations.

6. Regulations regarding the deadline for submitting reports on the evaluation committee's activities regarding the implementation of audit services over annual historical financial information for Stock Exchanges, Clearing and Guarantee Institutions, Custody and Settlement Institutions, Securities Companies, Investor Protection Fund Organizers, and Securities Price Valuation Institutions as regulated in Article 28 paragraph (1) letter b of Financial Services Authority Regulation Number 13/POJK.03/2017 concerning the Use of Public Accountants and Public Accounting Firms in Financial Services Activities are extended by 2 (two) months from the deadline for report submission.

7. Regulations regarding the deadline for submitting reports on the underwriting activities of Securities Companies conducting business as Securities Underwriters as regulated in Regulation Number X.E.1, appendix of the Chairman of the Capital Market and Financial Institutions Supervisory Board Decision Number KEP460/BL/2008 Year 2008 dated November 10, 2008 concerning Periodic Reporting Obligations by Securities Companies are extended to the latest on the last working day of the following month, which previously applied based on Financial Services Authority Letter Number: S-255/D.04/2020 dated October 7, 2020 concerning Relaxation of Reporting Obligations for Securities Companies Conducting Business as Securities Underwriters.

8. Regulations regarding the deadline for submitting monthly activity reports of Securities Companies conducting business as Securities Underwriters as regulated in Regulation Number X.E.1, appendix of the Chairman of the Capital Market and Financial Institutions Supervisory Board Decision Number KEP460/BL/2008 Year 2008 dated November 10, 2008 concerning Periodic Reporting Obligations by Securities Companies are extended to the latest on the last working day of the following month, which previously applied based on Financial Services Authority Letter Number: S-144/D.04/2020 dated May 14, 2020 concerning Relaxation of Reporting Obligations for Securities Companies Conducting Business as Securities Brokers.

9. Regulations regarding the deadline for submitting periodic activity reports for PPE-EBUS as regulated in Financial Services Authority Regulation Number 9/POJK.04/2019 concerning Securities Brokers for Debt Securities and Sukuk are extended to the latest on the last working day of the following month.

III. RELAXATION OF IMPLEMENTATION OF ANNUAL GENERAL MEETINGS OF SHAREHOLDERS FOR STOCK EXCHANGES, CLEARING AND GUARANTEE INSTITUTIONS, AND CUSTODY AND SETTLEMENT INSTITUTIONS

Stock Exchanges, Clearing and Guarantee Institutions, and Custody and Settlement Institutions may hold annual general meetings of shareholders via teleconference, video conference, or other electronic media facilities that allow all participants in the annual general meeting of shareholders to see and hear each other directly and participate in the meeting, as has been applied based on Financial Services Authority letters:

1. Number: S-511/PM.21/2020 dated May 22, 2020 concerning Response to Requests for Guidance Regarding the Implementation of Annual General Meetings of Shareholders in Large-Scale Social Restriction Conditions (PSBB);
2. Number: S-159/D.04/2020 dated June 11, 2020 concerning Response to Requests for Guidance Regarding the Implementation of BEI 2020 Extraordinary General Meetings of Shareholders (RUPST);
3. Number: S-955/PM.21/2020 dated September 29, 2020 concerning Response to Requests for Guidance Regarding the Implementation of Extraordinary General Meetings of Shareholders in Large-Scale Social Restriction Conditions (PSBB);
4. Number: S-1022/PM.21/2020 dated October 18, 2020 concerning Approval of the Implementation of the Extraordinary General Meeting of Shareholders of PT Kliring Penjaminan Efek Indonesia (KPEI) in Large-Scale Social Restriction Conditions (PSBB); and
5. Number: S-677/PM.21/2021 dated June 8, 2021 concerning response to requests for guidance regarding the implementation of Annual General Meetings of Shareholders in Covid-19 Pandemic Conditions.

IV. ORDER TO STOCK EXCHANGES TO PROHIBIT SHORT SELLING TRANSACTIONS

Stock Exchanges are ordered to prohibit Short Selling Transactions for all Stock Exchange Members as has been applied in Financial Services Authority Letter Number: S252/PM.21/2020 dated February 28, 2020 concerning Order to Prohibit Short Selling Transactions.

V. ORDER TO STOCK EXCHANGES TO IMPLEMENT TRADING HALTS AT STOCK EXCHANGES IN CONDITIONS WHERE THE CAPITAL MARKET IS UNDER PRESSURE

1. Stock Exchanges are ordered to implement trading halts for 30 (thirty) minutes if the composite stock price index experiences a decline reaching 5% (five percent) as has been applied in Financial Services Authority Letter Number: S-274/PM.21/2020 dated March 10, 2020 concerning Order to Implement Trading Halts at Stock Exchanges in Conditions Where the Capital Market is Under Pressure.

2. In the event that the composite stock price index:
   a. experiences a decline of more than 10% (ten percent); and/or b. continues to decline until it reaches more than 15% (fifteen percent) after the trading halt is implemented, the provisions as regulated in the Stock Exchange Indonesia Board of Directors Decision Number: Kep-00366/BEI/05-2012 regarding Guidelines for Handling Trading Continuity at the Indonesia Stock Exchange in Emergency Conditions remain applicable.

VI. ORDER TO STOCK EXCHANGES TO CHANGE AUTO REJECTION LIMITS

1. In order to maintain the continuity of the stock market to remain conducive, Stock Exchanges are ordered to:
   a. change the auto rejection limit regulations for stocks as follows:

No	Reference Price	Auto Rejection Upper	Auto Rejection Lower
1	≥50 - 200	35%	-
2	>200 - 5000	25%	7%
3	>5000	20%	-

as has been applied based on Financial Services Authority Letter Number: S-281/PM.21/2020 dated March 12, 2020 concerning Order to Change Auto Rejection and Adjustment of Pre-Opening Mechanisms. b. change the auto rejection limit for trading stocks resulting from the first public offering traded at the Stock Exchange as regulated in Stock Exchange regulations to 1 (one) times the percentage of the auto rejection limit set by the Stock Exchange as has been applied based on Financial Services Authority Letter Number: S281/PM.21/2020 dated March 12, 2020 concerning Order to Change Auto Rejection and Adjustment of Pre-Opening Mechanisms to the Indonesia Stock Exchange.
c. change the auto rejection for the pre-opening session stocks to 1 (one) time throughout trading hours by adjusting the reference price for stocks that originally used the opening price to use the previous price as has been applied based on Financial Services Authority Letter Number: S-829/PM.21/2020 dated September 1, 2020 concerning Order to Adjust Trading in the Pre-Opening Session at the Stock Exchange.

2. In order to facilitate the change of pre-opening session auto rejection as referred to in item 1, Stock Exchanges may make changes to the Stock Exchange's systems or regulations.

VII. ORDER TO STOCK EXCHANGES, CLEARING AND GUARANTEE INSTITUTIONS, AND CUSTODY AND SETTLEMENT INSTITUTIONS REGARDING ADJUSTMENT OF TRADING HOURS FOR SECURITIES AT STOCK EXCHANGES AND PPAS, SECURITIES TRANSACTION REPORTING TIMES, AND CLEARING AND SETTLEMENT OF SECURITIES TRANSACTIONS

1. Stock Exchanges are ordered to shorten the trading hours for equity securities as has been applied in Financial Services Authority Letter Number: S-323/PM.21/2020 dated March 24, 2020 concerning Order to Change Trading Hours at Stock Exchanges and PPAs, Operational Times for Securities Transaction Reporting Recipients, and Adjustment of Settlement Times, with times as follows:
   a. Session I: 09:00 to 11:30. b. Session II: 13:30 to 15:00.

2. Stock Exchanges and PPAs are ordered to shorten the trading hours for debt securities and sukuk at Stock Exchanges and PPAs and adjust reporting times at PLTE by adjusting the shortened operational hours at Bank Indonesia as per the OJK order in Letter Number: S781/PM.21/2021 dated June 29, 2021 concerning Order to Re-adjust Trading Times for Debt Securities at Stock Exchanges and PPAs, PLTE Reporting Times, and Clearing and Settlement of Securities Transactions by SROs During the Covid-19 Pandemic, with times as follows:
   a. trading hours for debt securities and sukuk at Stock Exchanges and PPAs become 09:00 to 15:00. b. PLTE operational hours become 09:30 to 15:30.

This copy is in accordance with the original

Legal Director 1
Legal Department signed
Mufli Asmawidjaja

3. Clearing and Guarantee Institutions and Custody and Settlement Institutions are ordered to adjust clearing and settlement operational hours with Bank Indonesia's real-time gross settlement and Bank Indonesia scripless securities settlement system operational service hours.

VIII. CLOSING

The provisions in this Financial Services Authority Circular Letter shall take effect on the date of determination.

Determined in Jakarta on December 1, 2021

EXECUTIVE HEAD OF CAPITAL MARKET SUPERVISOR
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
HOESEN