Procedure and Method for Imposing Administrative Sanctions in the Insurance Sector and Blocking Assets of Insurance, Islamic Insurance, Reinsurance, and Islamic Reinsurance Companies

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 17 /POJK.05/2017
CONCERNING
PROCEDURE AND METHOD FOR IMPOSING ADMINISTRATIVE SANCTIONS IN THE INSURANCE SECTOR AND BLOCKING ASSETS OF INSURANCE COMPANIES, ISLAMIC INSURANCE COMPANIES, REINSURANCE COMPANIES, AND ISLAMIC REINSURANCE COMPANIES BY THE GRACE OF THE ALMIGHTY GOD THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: that in order to exercise the authority of the Financial Services Authority and implement the provisions of Article 71 paragraph (4) and Article 72 paragraph (5) of Law Number 40 of 2014 concerning Insurance, it is necessary to establish a Financial Services Authority Regulation concerning Procedure and Method for Imposing Administrative Sanctions in the Insurance Sector and Blocking Assets of Insurance Companies, Islamic Insurance Companies, Reinsurance Companies, and Islamic Reinsurance Companies; Considering: 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 40 of 2014 concerning Insurance (State Gazette of the Republic of Indonesia Year 2014 Number 337, Supplement to the State Gazette of the Republic of Indonesia Number 5618);

DECIDES:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING PROCEDURE AND METHOD FOR IMPOSING ADMINISTRATIVE SANCTIONS IN THE INSURANCE SECTOR AND BLOCKING ASSETS OF INSURANCE COMPANIES, ISLAMIC INSURANCE COMPANIES, REINSURANCE COMPANIES, AND ISLAMIC REINSURANCE COMPANIES.

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

1. Insurance Company is an insurance company, Islamic insurance company, reinsurance company, Islamic reinsurance company, insurance brokerage company, reinsurance brokerage company, and insurance loss assessor company.
2. Insurance Broker is a person who works at an insurance brokerage company and meets the requirements to give recommendations or represent policyholders, insured parties, or participants in conducting insurance or Islamic insurance coverage and/or claim settlement.
3. Reinsurance Broker is a person who works at a reinsurance brokerage company and meets the requirements to give recommendations or represent insurance companies, Islamic insurance companies, guarantee companies, Islamic guarantee companies, reinsurance companies, or Islamic reinsurance companies in conducting reinsurance or Islamic reinsurance coverage and/or claim settlement.
4. Insurance Agent is a person who works alone or works for a business entity, who acts on behalf of and in the name of an insurance company or Islamic insurance company and meets the requirements to represent the insurance company or Islamic insurance company in marketing insurance products or Islamic insurance products.
5. Actuarial Consultant is an actuary who works at an actuarial consulting office and provides services for Insurance Companies.
6. Public Accountant is a public accountant as referred to in Law Number 5 of 2011 concerning Public Accountants and provides services for Insurance Companies.
7. Assessor is a person who, with their expertise, conducts asset valuation activities and provides services for Insurance Companies.
8. Sharia Supervisory Board, hereinafter abbreviated as DPS, is part of the organ of insurance companies, Islamic insurance companies, reinsurance companies, and Islamic reinsurance companies that has the task and function of supervising the implementation of business activities of insurance companies, Islamic insurance companies, reinsurance companies, and Islamic reinsurance companies to be in accordance with Sharia principles.
9. Any Person is an individual or corporation.
10. Assets are assets owned and/or controlled by insurance companies, Islamic insurance companies, reinsurance companies, and Islamic reinsurance companies.
11. Blocking is an action to stop any activities, including among others reducing value, transferring, exchanging, placing, distributing, and/or liquidating part or all of the Assets for a certain period.

CHAPTER II
TYPES OF ADMINISTRATIVE SANCTIONS
IN THE INSURANCE SECTOR
Article 2
(1) The Financial Services Authority has the authority to impose administrative sanctions on Any Person who violates the provisions in Law Number 40 of 2014 concerning Insurance and its implementing regulations.
(2) Administrative sanctions as referred to in paragraph (1) include:
a. written warning; b. restriction of business activities, for part or all of business activities;
c. prohibition to market insurance products or Islamic insurance products for specific business lines;
d. revocation of business license; e. cancellation of registration statement for Insurance Brokers, Reinsurance Brokers, and Insurance Agents; f. cancellation of registration statement for Actuarial Consultants, Public Accountants, Assessors, or other parties providing services for Insurance Companies; g. cancellation of approval for mediation institutions or associations; h. administrative fine; and/or
i. prohibition to become shareholders, controllers, directors, board of commissioners, DPS, or hold executive positions below the board of directors, or equivalent to executive positions below the board of directors, in Insurance Companies.

(3) Administrative sanctions as referred to in paragraph (1) are established and communicated by the Financial Services Authority in writing.

CHAPTER III
PROCEDURE AND METHOD FOR IMPOSING
ADMINISTRATIVE SANCTIONS
First Section
Procedure and Method for Imposing Administrative Sanctions for Insurance Companies
Article 3
(1) Administrative sanctions as referred to in Article 2 paragraph (2) are imposed on Insurance Companies in stages, starting with administrative sanctions in the form of written warnings, unless otherwise regulated.
(2) Imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) is carried out at most 3 (three) times consecutively for each violation, namely administrative sanctions in the form of first written warning, second written warning, and third or final written warning. (3) Administrative sanctions in the form of first and second written warnings can be imposed as final written warning administrative sanctions if Insurance Companies:
a. have previously committed the same violation within 1 (one) year prior to the date of imposition of administrative sanctions in the form of written warning; b. are currently subject to administrative sanctions in the form of business activity restriction due to other violations; and/or
c. based on the Financial Services Authority's consideration, subsequent written warning sanctions are not necessary.
(4) The implementation period of administrative sanctions in the form of written warnings for Insurance Companies is at most 30 (thirty) days each since the administrative sanctions were established.
(5) The implementation period of administrative sanctions as referred to in paragraph (4) can be implemented for longer than 30 (thirty) days if the Financial Services Authority assesses that the type of violation committed cannot be resolved within that period, namely:
a. at most 6 (six) months, in cases:

1. insurance companies, Islamic insurance companies, reinsurance companies, and Islamic reinsurance companies are subject to administrative sanctions due to non-fulfillment of minimum solvency requirements and/or minimum equity; or
2. insurance brokerage companies, reinsurance brokerage companies, or insurance loss assessor companies are subject to administrative sanctions due to non-fulfillment of minimum equity requirements; or
   b. at most 3 (three) months, in cases where the cause of imposing administrative sanctions is other than as referred to in letter a.

Article 4
(1) Insurance Companies are subject to administrative sanctions in the form of business activity restriction if Insurance Companies cannot resolve violations that are the cause of the issuance of the final written warning sanctions until the period as referred to in Article 3 paragraph (4) or paragraph (5). (2) Administrative sanctions in the form of business activity restriction as referred to in paragraph (1) can be imposed for part or all of business activities. (3) The Financial Services Authority can impose business activity restriction sanctions for part or all of business activities on Insurance Companies without prior imposition of administrative sanctions in the form of written warnings if the financial health conditions of Insurance Companies deteriorate and/or Insurance Companies are assessed to endanger the interests of policyholders, insured parties, or participants. (4) Insurance Companies currently subject to administrative sanctions in the form of business activity restriction for part or all of business activities as referred to in paragraph (2) are still subject to administrative sanctions in the form of written warnings if they commit new violations other than those that have become the basis for imposing business activity restriction sanctions for part or all of business activities. (5) The implementation period of administrative sanctions in the form of business activity restriction for Insurance Companies is:
a. at most 1 (one) year for business activity restriction for part of business activities; or b. at most 3 (three) months for business activity restriction for all business activities, since the administrative sanctions were established.

Article 5
(1) Insurance Companies are subject to administrative sanctions in the form of business activity restriction for all business activities if Insurance Companies cannot resolve violations that are the cause of the issuance of administrative sanctions in the form of business activity restriction for part of business activities until the specified period as referred to in Article 4 paragraph (5) letter a. (2) In cases where Insurance Companies currently subject to administrative sanctions in the form of business activity restriction for all business activities are subject to new administrative sanctions in the form of business activity restriction due to new violations, then:
a. the new violations become additional grounds for imposing administrative sanctions in the form of business activity restriction for all business activities; and b. the implementation period of administrative sanctions in the form of business activity restriction follows the implementation period of administrative sanctions in the form of business activity restriction for all business activities previously imposed on the Insurance Companies. (3) The Financial Services Authority announces to the public regarding the imposition of administrative sanctions in the form of business activity restriction through the official website of the Financial Services Authority and/or national-scale print media.

Article 6
(1) Insurance Companies are subject to administrative sanctions in the form of business license revocation if Insurance Companies cannot resolve violations that are the cause of the issuance of administrative sanctions in the form of business activity restriction for all business activities until the period as referred to in Article 4 paragraph (5) letter b. (2) The Financial Services Authority can impose administrative sanctions in the form of business license revocation on Insurance Companies without prior imposition of other administrative sanctions, in cases:
a. the financial conditions of Insurance Companies deteriorate drastically; b. shareholders of Insurance Companies are uncooperative;
c. directors, board of commissioners, or equivalents, or DPS in Insurance Companies do not have solutions to resolve issues endangering the interests of policyholders, insured parties, or participants;
d. regulated in other laws and regulations in the insurance sector; and/or e. other conditions assessed by the Financial Services Authority to endanger the interests of policyholders, insured parties, or participants.
(3) The Financial Services Authority announces to the public regarding the imposition of administrative sanctions in the form of business license revocation through the official website of the Financial Services Authority and/or national-scale print media.

Article 7
(1) Insurance Companies can be subject to administrative sanctions in the form of prohibition to market insurance products or Islamic insurance products for specific business lines.
(2) Imposition of administrative sanctions as referred to in paragraph (1) is carried out on Insurance Companies currently subject to administrative sanctions in the form of written warnings.
(3) The implementation period of administrative sanctions as referred to in paragraph (1) is at most 1 (one) year since the administrative sanctions were established.
(4) The Financial Services Authority announces to the public regarding the imposition of administrative sanctions in the form of prohibition to market insurance products or Islamic insurance products for specific business lines as referred to in paragraph (1) through the official website of the Financial Services Authority and/or national-scale print media.

Second Section
Procedure and Method for Imposing Administrative Sanctions for Actuarial Consultants, Assessors, Public Accountants, or Other Parties Who Are Service Provider Professions for Insurance Companies
Article 8
(1) Administrative sanctions as referred to in Article 2 paragraph (2) are imposed on Actuarial Consultants, Assessors, or other parties who are service provider professions for Insurance Companies in stages, starting with administrative sanctions in the form of written warnings, unless otherwise regulated. (2) Imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) is carried out at most 3 (three) times consecutively for each violation, namely administrative sanctions in the form of first written warning, second written warning, and third or final written warning. (3) Administrative sanctions in the form of first or second written warnings can be imposed as final written warning administrative sanctions if Actuarial Consultants, Assessors, or other parties who are service provider professions for Insurance Companies:
a. have previously committed the same violation within 1 (one) year prior to the date of imposition of administrative sanctions in the form of written warning; b. are currently subject to administrative sanctions in the form of restriction of all business activities due to other violations; and/or
c. based on the Financial Services Authority's consideration, subsequent administrative sanctions in the form of written warnings are not necessary.
(4) The implementation period of administrative sanctions in the form of written warnings for Actuarial Consultants, Assessors, or other parties who are service provider professions for Insurance Companies is at most 30 (thirty) days each since the administrative sanctions were established.

Article 9
(1) Actuarial Consultants, Assessors, or other parties who are service provider professions for Insurance Companies are subject to administrative sanctions in the form of restriction of all business activities if the concerned parties cannot resolve violations that are the cause of the issuance of administrative sanctions in the form of final written warnings until the period as referred to in Article 8 paragraph (4). (2) The implementation period of administrative sanctions in the form of restriction of all business activities for Actuarial Consultants, Assessors, or other parties who are service provider professions for Insurance Companies is at most 1 (one) year since the administrative sanctions were established. (3) The Financial Services Authority announces to the public regarding the imposition of administrative sanctions in the form of business activity restriction through the official website of the Financial Services Authority and/or national-scale print media.

Article 10
(1) Actuarial Consultants, Assessors, or other parties who are service provider professions for Insurance Companies are subject to administrative sanctions in the form of cancellation of registration statements if the concerned parties cannot resolve violations that are the cause of the issuance of administrative sanctions in the form of restriction of all business activities until the period as referred to in Article 9 paragraph (2). (2) Procedure and method for imposing administrative sanctions for Public Accountants refer to Financial Services Authority regulations concerning the use of Public Accountant services and Public Accountant offices in financial services activities. (3) The Financial Services Authority announces to the public regarding the imposition of administrative sanctions in the form of cancellation of registration statements for Actuarial Consultants, Assessors, or other parties who are service provider professions for Insurance Companies through the official website of the Financial Services Authority and/or national-scale print media.

Third Section
Procedure and Method for Imposing Administrative Sanctions for Insurance Brokers, Reinsurance Brokers, Insurance Agents, or Other Parties Who Are Not Service Provider Professions for Insurance Companies
Article 11
(1) Administrative sanctions as referred to in Article 2 paragraph (2) are imposed on Insurance Brokers, Reinsurance Brokers, Insurance Agents, or other parties who are not service provider professions for Insurance Companies in stages, starting with administrative sanctions in the form of written warnings, unless otherwise regulated. (2) Imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) is carried out at most 3 (three) times consecutively for each violation. (3) The implementation period of administrative sanctions in the form of written warnings for Insurance Brokers, Reinsurance Brokers, Insurance Agents, or other parties who are not service provider professions for Insurance Companies is at most 30 (thirty) days each since the administrative sanctions were established.

Article 12
(1) Insurance Brokers, Reinsurance Brokers, Insurance Agents, or other parties who are not service provider professions for Insurance Companies are subject to administrative sanctions in the form of cancellation of registration statements if the concerned parties cannot resolve violations that are the cause of the issuance of administrative sanctions in the form of written warnings until the specified period as referred to in Article 11 paragraph (3). (2) The Financial Services Authority can impose administrative sanctions in the form of cancellation of registration statements on Insurance Brokers, Reinsurance Brokers, Insurance Agents, or other parties who are not service provider professions for Insurance Companies without prior imposition of administrative sanctions in the form of written warnings as referred to in Article 11 paragraph (1), in cases where there are violations of laws and regulations in the insurance sector assessed to endanger the interests of policyholders, insured parties, or participants. (3) The Financial Services Authority announces to the public regarding the imposition of administrative sanctions in the form of cancellation of registration statements for Insurance Brokers, Reinsurance Brokers, Insurance Agents, or other parties who are not service provider professions for Insurance Companies through the official website of the Financial Services Authority and/or national-scale print media.

Fourth Section
Procedure and Method for Imposing Administrative Sanctions for Shareholders, Controllers, Directors, Board of Commissioners, or DPS
Article 13
(1) Administrative sanctions as referred to in Article 2 paragraph (2) are imposed on shareholders, controllers, directors, board of commissioners, or DPS of Insurance Companies in stages, starting with administrative sanctions in the form of written warnings, unless otherwise regulated. (2) Imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) is carried out at most 3 (three) times consecutively for each violation, namely administrative sanctions in the form of first written warning, second written warning, and third or final written warning. (3) Administrative sanctions in the form of first and second written warnings can be imposed as final written warning administrative sanctions if shareholders, controllers, directors, board of commissioners, or DPS have previously committed the same violation within 1 (one) year prior to the date of imposition of administrative sanctions in the form of written warning or based on the Financial Services Authority's consideration that subsequent administrative sanctions in the form of written warnings are not necessary. (4) The implementation period of administrative sanctions in the form of written warnings for shareholders, controllers, directors, board of commissioners, or DPS is at most 30 (thirty) days each since the administrative sanctions were established.

Article 14
(1) Shareholders, controllers, directors, board of commissioners, or DPS are subject to administrative sanctions in the form of prohibition to become shareholders, controllers, directors, board of commissioners, DPS, or hold executive positions below the board of directors, or equivalent to executive positions below the board of directors, in Insurance Companies if the concerned parties cannot resolve violations that are the cause of the issuance of administrative sanctions in the form of final written warnings within the period as referred to in Article 13 paragraph (4). (2) Administrative sanctions in the form of prohibition to become shareholders, controllers, directors, board of commissioners, DPS, or hold executive positions below the board of directors, or equivalent to executive positions below the board of directors, in Insurance Companies can be imposed for a period of 3 (three) years, 5 (five) years, or 20 (twenty) years. (3) Administrative sanctions in the form of prohibition to become shareholders or controllers are imposed for the following periods:
a. 3 (three) years, in cases where shareholders or controllers:

1. influence and/or order directors, board of commissioners, DPS, executive officials, and/or employees to commit acts violating prudent principles and/or sound insurance business principles;
2. are proven not to implement orders from the Financial Services Authority to do and/or not to do something;
3. are unable to take necessary measures when Insurance Companies experience capital or liquidity difficulties; or
4. are proven to refuse to provide commitments and/or fail to fulfill commitments agreed upon with the Financial Services Authority and/or government;
   b. 5 (five) years, in cases where shareholders or controllers:
5. influence and/or order directors, board of commissioners, DPS, executive officials, and/or employees to obscure violations of regulations or financial conditions and/or transactions;
6. influence and/or order directors, board of commissioners, DPS, executive officials, and/or employees to provide unfair benefits to shareholders, board of commissioners, directors, DPS, executive officials, employees, and/or other parties that can harm or reduce the profits of Insurance Companies; or
7. commit acts as referred to in letter a repeatedly, more than 1 (one) violation, and/or are proven

benefiting oneself or other parties; or

c. 20 (twenty) years, in the case of shareholders or controllers:

1. proven to have committed a criminal offense in the financial services sector based on a court decision that has acquired permanent legal force;
2. proven to have caused the Insurance Company to experience difficulties that endanger the continuity of the Insurance Company's business and/or may endanger the insurance industry; or
3. proven to have been declared bankrupt and/or guilty, causing an Insurance Company to be declared bankrupt based on a court decision that has acquired permanent legal force.

(4) Administrative sanctions in the form of a ban on becoming a director, board of commissioners, DPS, or holding an executive position below the directorate, or equivalent to an executive position below the directorate at an Insurance Company, are imposed for a period of:

a. 3 (three) years, in the case of directors, board of commissioners, or DPS:

1. violating prudential principles in the insurance sector and/or the principles of healthy insurance business;

2. proven not to have executed the orders of the Financial Services Authority to do and/or not to do something;

3. unable to perform strategic management in the context of developing a healthy Insurance Company; or

4. proven to have refused to provide commitments and/or not to have fulfilled commitments previously agreed upon with the Financial Services Authority and/or the government;

b. 5 (five) years, in the case of directors, board of commissioners, or DPS:

1. concealing and/or obscuring violations of regulations or financial conditions and/or transactions;
2. providing unfair benefits to shareholders, board of commissioners, directors, DPS, executive officials, employees, and/or other parties that can harm or reduce the profits of the Insurance Company; or
3. committing acts as referred to in letter a repeatedly, more than 1 (one) violation, and/or proven to have benefited oneself or other parties; or

c. 20 (twenty) years, in the case of directors, board of commissioners, or DPS:

1. proven to have committed a criminal offense in the financial services sector based on a court decision that has acquired permanent legal force;
2. proven to have caused the Insurance Company to experience difficulties that endanger the continuity of the Insurance Company's business and/or may endanger the insurance industry; or
3. proven to have been declared bankrupt and/or guilty, causing an Insurance Company to be declared bankrupt based on a court decision that has acquired permanent legal force.

(5) In the event that the violation criteria committed by shareholders, controllers, directors, board of commissioners, or DPS relate to integrity, the Financial Services Authority may impose administrative sanctions in the form of a ban on becoming a shareholder, controller, director, board of commissioner, DPS, and holding an executive position below the directorate, or equivalent to an executive position below the directorate, across positions.

Article 15
(1) Shareholders or controllers of an Insurance Company subject to administrative sanctions as referred to in Article 14 paragraph (1) may be granted an adjustment period of up to 1 (one) year from the determination of the administrative sanction in the form of a ban on becoming a shareholder or controller. (2) The adjustment period as referred to in paragraph (1) must obtain approval from the Financial Services Authority. (3) To obtain approval as referred to in paragraph (2), the shareholder or controller must submit a request within a maximum period of 10 (ten) working days from the date of the administrative sanction determination letter. (4) The request as referred to in paragraph (3) must contain at least:
a. the background or reasons for the adjustment period request; b. the proposed adjustment period; and
c. the steps to be taken during the adjustment period.

CHAPTER IV
ADMINISTRATIVE FINE ADMINISTRATIVE SANCTIONS

Article 16
(1) Any Person may be subject to administrative sanctions in the form of administrative fines.
(2) Violations that give rise to administrative sanctions in the form of administrative fines and the amount of administrative fines as referred to in paragraph (1) are regulated in legislation in the insurance sector.
(3) Administrative sanctions in the form of administrative fines as referred to in paragraph (1) are communicated in writing containing at least:
a. the amount of the administrative fine; and b. the violation that caused the administrative fine to be imposed.
(4) The procedure for paying administrative sanctions in the form of administrative fines as referred to in paragraph (1) refers to the regulations of the Financial Services Authority regarding the procedure for collecting administrative sanctions in the form of fines in the financial services sector.

CHAPTER V
PROCEDURES AND PROCEDURES FOR SUBMITTING OBJECTIONS TO ADMINISTRATIVE SANCTIONS

Article 17
(1) Any Person subject to administrative sanctions as referred to in Article 2 paragraph (2) may submit an objection to the Financial Services Authority.
(2) The objection as referred to in paragraph (1) is submitted in writing in the Indonesian language by providing strong reasons regarding the objection to the administrative sanction imposed and accompanied by supporting evidence.
(3) The objection must be submitted within a maximum period of 10 (ten) working days from the date of the administrative sanction determination letter.
(4) The Financial Services Authority approves or rejects the objection as referred to in paragraph (1) within a maximum period of 30 (thirty) working days from the receipt of the objection to the administrative sanction as referred to in paragraph (1). (5) In the event that the objection as referred to in paragraph (1) is approved, the Financial Services Authority issues a letter canceling the imposition of the administrative sanction. (6) In the event that the objection as referred to in paragraph (1) is rejected, the Financial Services Authority issues a letter rejecting the submitted objection accompanied by reasons for rejection and an affirmation that the administrative sanction remains in effect.

CHAPTER VI
PROCEDURES AND PROCEDURES FOR TERMINATION AND REVOCATION OF ADMINISTRATIVE SANCTIONS

Article 18
(1) Administrative sanctions end when Any Person subject to administrative sanctions submits a report to the Financial Services Authority that they have overcome the violation that was the cause of the issuance of the administrative sanction within the given period and the Financial Services Authority assesses that they have overcome the said violation. (2) The termination of administrative sanctions as referred to in paragraph (1) is carried out by the Financial Services Authority by issuing a letter revoking the administrative sanction, unless at the time the administrative sanction was issued, the Financial Services Authority knew that the person concerned had already overcome the violation that was the cause of the issuance of the said administrative sanction. (3) The Financial Services Authority announces to the public regarding the termination of administrative sanctions in the form of restrictions on business activities, for part or all of business activities, bans on marketing insurance products or Islamic insurance products for specific business lines through the official website of the Financial Services Authority and/or national-scale print media.

CHAPTER VII
PROCEDURES AND PROCEDURES FOR BLOCKING ASSETS OF INSURANCE COMPANIES, ISLAMIC INSURANCE COMPANIES, REINSURANCE COMPANIES, AND ISLAMIC REINSURANCE COMPANIES

First Section
Procedures and Procedures for Blocking

Article 19
(1) The Financial Services Authority may order the implementation of Blocking or request competent agencies to block part or all of the Assets of insurance companies, Islamic insurance companies, reinsurance companies, or Islamic reinsurance companies that are currently subject to administrative sanctions in the form of restrictions on business activities due to not meeting solvency requirements or having their business licenses revoked. (2) To implement the Blocking of part or all of the Assets as referred to in paragraph (1), the Financial Services Authority establishes a Blocking Order letter or submits a Blocking Request letter to:
a. banks; b. depository and settlement institutions;
c. custodian banks;
d. the National Land Agency; and/or e. other parties competent to perform Blocking.
(3) The types of Assets that can be blocked are:
a. deposits, deposit certificates, savings, and checking accounts at banks; b. shares listed on the stock exchange;
c. corporate bonds listed on the stock exchange;
d. medium-term notes; e. securities issued by the State of the Republic of Indonesia; f. securities issued by countries other than the State of the Republic of Indonesia; g. securities issued by Bank Indonesia; h. mutual fund participation units;
i. asset-backed securities;
j. participation units in real estate investment funds in the form of collective investment contracts; k. securities transactions through repurchase agreements (REPO);
l. buildings with strata rights (strata title);
m. land with buildings; n. land; and/or o. other Assets.

Article 20
(1) The submission of Blocking orders or requests as referred to in Article 19 paragraph (1) is carried out by the Financial Services Authority.
(2) The Blocking orders or requests as referred to in paragraph (1) are communicated in writing by the Financial Services Authority containing at least information regarding:
a. the legal basis for the Financial Services Authority's authority to request the Blocking of Assets; b. the identity of the party whose assets will be blocked;
c. the list of Assets to be blocked; and
d. the duration of the Blocking.

Article 21
(1) Upon the Blocking order or request as referred to in Article 20, the party performing the Blocking as referred to in Article 19 paragraph (2) creates a Blocking Minutes document containing at least:
a. the number and date of the Blocking request letter; b. the day and date of receipt of the Blocking request letter;
c. the day and date of the Blocking; and
d. the identity of the party whose assets are blocked.
(2) The Blocking Minutes as referred to in paragraph (1) are submitted to the Financial Services Authority and the insurance company, Islamic insurance company, reinsurance company, or Islamic reinsurance company whose assets are blocked within a maximum of 3 (three) working days since the Blocking was carried out.

Second Section
Revocation of Blocking

Article 22
(1) The Financial Services Authority revokes the blocking of part or all of the Assets as referred to in Article 19 paragraph (3) when:
a. the conditions causing the Blocking of Assets are no longer met; and/or b. the Financial Services Authority assesses that Blocking is no longer necessary.
(2) The Financial Services Authority carries out the revocation of blocking in paragraph (1) by submitting a Blocking revocation order letter or Blocking revocation request letter to the parties as referred to in Article 19 paragraph (2).

Article 23
Upon the Blocking revocation order or request as referred to in Article 22 paragraph (2), the party performing the Blocking as referred to in Article 19 paragraph (2) follows up on the said order or request within a maximum period of 5 (five) working days since the receipt of the Blocking revocation order letter or Blocking revocation request letter.

Article 24
(1) Upon the Blocking revocation order or request as referred to in Article 23, the party performing the Blocking revocation as referred to in Article 19 paragraph (2) creates a Blocking revocation Minutes document containing at least:
a. the number and date of the Blocking revocation request letter; b. the day and date of receipt of the Blocking revocation request letter;
c. the day and date of the Blocking revocation; and
d. the identity of the party whose assets have had the blocking revoked.

(2) The Blocking revocation Minutes as referred to in paragraph (1) are submitted to the Financial Services Authority and the insurance company, Islamic insurance company, reinsurance company, or Islamic reinsurance company whose assets have had the blocking revoked within a maximum of 3 (three) working days since the Blocking revocation was carried out. (3) The Blocking revocation is considered effective at the time the party as referred to in Article 19 paragraph (2) issues the Blocking revocation Minutes.

CHAPTER VIII
TRANSITIONAL PROVISIONS

Article 25
(1) At the time this Financial Services Authority Regulation comes into force, administrative sanctions already imposed on Insurance Companies prior to the effectiveness of this Financial Services Authority Regulation are declared to remain in effect. (2) At the time this Financial Services Authority Regulation comes into force, administrative sanctions not yet issued that are subsequent stages of administrative sanctions as referred to in paragraph (1) shall refer to this Financial Services Authority Regulation.

CHAPTER IX
CLOSING PROVISIONS

Article 26
At the time this Financial Services Authority Regulation comes into force, regulations regarding procedures and procedures for the imposition of administrative sanctions in the insurance sector shall be subject to this Financial Services Authority Regulation.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Yuliana

Article 27
This Financial Services Authority Regulation comes into force on the date of its promulgation.
To ensure that everyone knows it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Determined in Jakarta on 17 April 2017
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signed
MULIAMAN D. HADAD
Promulgated in Jakarta on 25 April 2017
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 91