To:
Capital Market Participants,
At your location.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 7 /SEOJK.04/2022 CONCERNING PROCEDURES FOR EXAMINATION IN THE CAPITAL MARKET SECTOR

In order to implement the provisions of Article 17 of the Financial Services Authority Regulation Number 36/POJK.04/2018 concerning Procedures for Examination in the Capital Market Sector (State Gazette of the Republic of Indonesia Year 2018 Number 261, Supplement to the State Gazette of the Republic of Indonesia Number 6287), it is necessary to regulate the implementation provisions regarding the Financial Services Authority regulation concerning procedures for examination in the capital market sector in this Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS
In this Financial Services Authority Circular Letter, the following terms are meant:

1. Examiner is an employee of the Financial Services Authority appointed by the Head of the Executive for Capital Market Supervision of the Financial Services Authority to conduct examinations in the capital market sector.
2. Examination is a series of activities to search for, collect, and process data and/or other information carried out by the Examiner to prove the existence or non-existence of violations of statutory regulations in the capital market sector.
3. Decision Letter on the Determination of the Start of Examination in the Capital Market Sector is a letter determining the start of the Examination.
4. Examination Order is a letter ordering the Examiner to conduct the Examination.
5. Examination Result Report, hereinafter abbreviated as LHP, is a written report containing the entire series of Examination activities, including facts, documents, results of analysis over test evidence obtained during the implementation of the Examination, as well as conclusions and recommendations regarding suspected violations of statutory regulations in the capital market sector.

II. GENERAL GUIDELINES FOR EXAMINATION

1. Examinations are carried out by Examiners who have sufficient technical knowledge and can use their expertise carefully and attentively, and possess the skills of an Examiner.
2. Examiners must work with honesty, fairness, responsibility, full dedication, and must avoid actions that would harm their freedom of action as a good Examiner, namely:
   a. Examiners in carrying out Examination activities must:

1. have integrity, namely acting objectively, fairly, and consistently in accordance with the code of ethics and organizational policies, upholding honesty and commitment;
2. be professional, namely working with full responsibility based on high competence to achieve the best performance;
3. maintain the confidentiality of data and information related to the implementation of the Examination, both during and after no longer working at the Financial Services Authority as regulated in provisions regarding the use and disclosure of confidential information;
4. be independent, namely not influenced by conditions, actions, and having no conflict of interest with the examined party or parties related to the examined party; and
5. have and wear the Financial Services Authority employee ID card, which also serves as the Examiner's identification and is stated in the Examination Order.
   b. Examiners in carrying out Examination activities cannot:
6. inform in any way data, information, and/or documents obtained during Examination activities to parties not entitled;
7. utilize data, information, and/or documents obtained during Examination activities for the benefit of themselves or other parties not entitled;
8. ask, give approval to receive, or ask, and/or allow other parties in any way to ask or receive in any form and other matters that can be valued in money from the examined party or other parties related to the examined party; and
9. promise something to the examined party in hopes of receiving gifts in any form and other matters that can be valued in money.

3. The Examination Result Report must be prepared by the Examiner carefully and attentively and provide a picture that corresponds to the actual situation, with the provision that the Examiner compiles the LHP based on evidence obtained from the results of the Examination in accordance with the LHP guidelines.

III. GUIDELINES FOR EXAMINATION IMPLEMENTATION

1. The implementation of the Examination must be done with the best preparation and with regard to the purpose of the Examination, and there must be careful supervision and guidance for the Examiner.
   a. Examinations can be conducted based on reports, notifications, or complaints from parties regarding violations of statutory regulations in the capital market sector, failure to fulfill obligations that must be carried out by parties who have obtained permits, approvals, or registrations from the Financial Services Authority or other parties required to submit reports to the Financial Services Authority and/or indications or clues regarding the occurrence of violations of statutory regulations in the capital market sector. b. Before the start of the Examination, preparation must precede it according to the purpose of the Examination, namely:

1. the determination of the Decision Letter on the Determination of the Start of Examination in the Capital Market Sector; and
2. the determination of the Examination Order containing the Examination program at least:
   a) the purpose of the Examination, namely to prove the existence or non-existence of violations of statutory regulations in the capital market sector carried out by:
   (1) searching for, collecting, and processing data and/or information to prove the existence or non-existence of violations of statutory regulations in the capital market sector; (2) examining and/or requesting information and/or confirmation from parties suspected of committing and/or knowing suspected violations of regulations in the capital market sector or other implementing regulations in the capital market sector; and (3) granting authority to the Examiner team to conduct summonses, Examinations, and collect evidence related to suspected violations of statutory regulations in the capital market sector; and (4) taking other actions necessary for the interest of the Examination; b) the scope of the Examination, namely conducting Examinations against parties suspected of violating statutory regulations in the capital market sector and conducting Examinations against other parties suspected of being involved and/or knowing the suspected violations; and c) the start of the Examination, namely the date of the determination of the Examination Order.
   c. The implementation of the Examination begins after the determination of:
3. Decision Letter on the Determination of the Start of Examination in the Capital Market Sector; and
4. Examination Order.
   d. After the determination of the Decision Letter on the Determination of the Start of Examination in the Capital Market Sector and the determination of the Examination Order, the Examiner compiles the Examination plan. e. The collection of data, documents, and/or information needed as evidence of violations in the capital market sector can be done through:
5. requests for data, information, and/or documents;
6. requests for information and/or confirmation; and/or
7. on-site examinations, if on-site examinations are needed.

2. The scope of the Examination is determined based on the level of indications or clues obtained, which must be developed with strong and related evidence through matching, observation, questioning, and data.
   a. The examined party must be cooperative, comply with, and support the implementation of the Examination. b. The examined party cannot hinder the implementation of the Examination.
   c. Requests for data, information, and/or documents.

1. Requests for data, information, and/or documents to:
   a) parties suspected of committing, being involved in, or knowing violations of statutory regulations in the capital market sector; or b) other parties, can be done through:
   a) letters requesting data, information, and/or documents via electronic mail, courier services, and/or through other parties; b) direct requests during the request for information recorded in the examination minutes; and/or c) direct requests during the implementation of on-site examinations.
2. In the event that the party suspected of committing, being involved in, or knowing violations does not submit part and/or all of the data, information, and/or documents as requested by the Financial Services Authority without accompanying reasons, the Financial Services Authority can make requests for data, information, and/or documents again at most 2 (two) times.
3. In the event that the Financial Services Authority makes requests for data, information, and/or documents again 2 (two) times as referred to in point 2) and the party suspected of committing, being involved in, or knowing violations does not submit part and/or all of the data, information, and/or documents requested by the Financial Services Authority as referred to in point 2), the said party can be considered uncooperative.
4. The party requested for data, information, and/or documents by the Financial Services Authority as referred to in point 2) can submit them directly, via courier services, and/or electronic media.
5. The letter submitting data, information, and/or documents must be signed by the party requested for data, information, and/or documents by the Examiner.
   d. Requests for information and/or confirmation.
6. Requests for information and/or confirmation can be made to parties suspected of committing, being involved in, or knowing violations of statutory regulations in the capital market sector and/or other parties.
7. Summons letters for requests for information and/or confirmation can be delivered to parties to be requested for information and/or confirmation by:
   a) directly, via courier services, or electronic media; and/or b) through other parties.
8. Request for information
   a) Requests for information can be done offline and/or online. b) Offline requests for information can be done at the Financial Services Authority Headquarters, Regional Offices, Financial Services Authority Offices, or other places. c) Requests for information are carried out during Financial Services Authority working hours and days. d) If necessary, requests for information as referred to in letter c) can be continued outside Financial Services Authority working hours and days. e) The party requested for information must fulfill the summons for information from the Financial Services Authority. f) In the event that the party requested for information as referred to in letter e) cannot attend at the place and/or time determined without reason, the Financial Services Authority sends a request for information letter again at most 2 (two) times. g) In the event that the party requested for information as referred to in letter f) still does not attend without reason, that party can be considered uncooperative. h) The party requested for information must submit a notification letter accompanied by reasons and supporting documents if unable to fulfill the summons from the Financial Services Authority at the latest 1 (one) day before the implementation of the request for information. i) The notification letter as referred to in letter h) can be submitted directly via courier services or electronic media. j) In the event that the Financial Services Authority has received the notification letter as referred to in letter h), the Financial Services Authority provides a response via written letter and/or electronic media. k) The results of the request for information are recorded in the form of examination minutes signed by the Examiner and the party requested for information. l) In the event that the party requested for information as referred to in letter e) has attended:
   (1) but refuses to give information, the party requested for information must sign a letter of refusal of the request for information accompanied by the reason for refusal; or (2) gives information but refuses to sign the examination minutes, the party requested for information must sign a letter of refusal to sign the examination minutes accompanied by the reason for refusal. m) The letter of refusal of the request for information and the letter of refusal to sign the examination minutes as referred to in letter l) use the format of the Letter of Refusal of Request for Information and Letter of Refusal to Sign Examination Minutes as stated in the Appendix which is an inseparable part of this Financial Services Authority Circular Letter. n) In the event that the party requested for information refuses to sign the letter of refusal of the request for information or the letter of refusal to sign the examination minutes as referred to in letter l), the Examiner makes minutes about the refusal signed by the Examiner. o) In the event that the party requested for information refuses to give information and/or refuses to sign the letter of refusal of the request for information, that party can be considered uncooperative. p) The party requested for information and/or the accompanying person is not allowed to take pictures and/or record sound and/or images with any recording device. q) In the event that the party requested for information is accompanied by legal counsel, the legal counsel must submit a power of attorney document. r) The party requested for information and/or the accompanying person must submit copies of identity documents. s) The party requested for information must provide information and facts to the best of their knowledge and according to what they know. t) The party requested for information must sign the Examination minutes.
9. Request for confirmation
   a) The party requested for confirmation must answer the confirmation according to the information and facts to the best of their knowledge. b) The party requested for confirmation must submit the confirmation answer according to the time limit determined by the Financial Services Authority. c) The confirmation answer letter can be submitted directly, via electronic media or courier services. d) The confirmation answer letter as referred to in letter c) must be signed by the party giving the confirmation and accompanied by a copy of identity. e) In the event that the party requested for confirmation as referred to in letter a) does not submit the confirmation answer without accompanying reason, the Financial Services Authority makes a request for confirmation again at most 2 (two) times. f) In the event that the party requested for confirmation does not submit the confirmation answer as referred to in letter e), that party can be considered uncooperative. e. On-site examinations
10. If on-site examinations are needed, on-site examinations can be conducted at specific places or rooms relevant to the Examination.
11. On-site examinations are conducted based on the on-site Examination assignment letter.
12. The party whose place or room is the site of the on-site examination must give permission to the Examiner to conduct on-site examination activities.
13. The party whose place or room is the site of the on-site examination must give the Examiner the opportunity to access and/or download data managed electronically related to suspected violations.
14. In the event that data and/or documents are obtained during on-site examinations, the Examiner makes minutes of the handover of data and/or documents.
15. The minutes of the handover of data and/or documents use the format of Minutes of Handover of Data and/or Documents as stated in the Appendix which is an inseparable part of this Financial Services Authority Circular Letter.
16. The party whose place or room is the site of the on-site examination must sign the minutes of the handover of data and/or documents.
17. In the event that the party whose place or room is the site of the on-site examination refuses to hand over or provide data and/or documents, that party must sign a letter of statement regarding the refusal.
18. The letter of statement refusing to provide data and/or documents during on-site examinations uses the format of Letter of Statement Refusing to Provide Data and/or Documents During On-site Examinations as stated in the Appendix which is an inseparable part of this Financial Services Authority Circular Letter.
19. In the event that the party as referred to in point 7) refuses to sign the letter of statement, the Examiner makes minutes about the refusal signed by the Examiner.
20. The party as referred to in point 8) who refuses to provide data and/or documents or the party as referred to in point 10) who refuses to sign the letter of statement of refusal can be considered uncooperative.
21. The party whose place or room is the site of the on-site examination and/or other parties are not allowed to make recordings in any form of the on-site examination activities.
    f. In the event that the party as referred to in letter c point 3), letter d point 3) letter g), letter d point 3) letter o), letter d point 4) letter f), and/or letter e point 11) is considered uncooperative, the Financial Services Authority can:
22. take certain actions;
23. consider it as an aggravating factor in the recommendation for the imposition of sanctions; and/or
24. consider it as a basis for investigation to be conducted.

3. Conclusions must be based on evidence related to the scope of the Examination and based on statutory regulations in the capital market sector.

IV. GUIDELINES FOR EXAMINATION RESULT REPORTS

1. The Examiner compiles the LHP as the result of all Examination activities.
2. The purpose of compiling the LHP is as a consideration for the Financial Services Authority in making decisions.
3. The LHP is confidential.
4. In compiling the LHP, the Examiner must pay attention to:
   a. the nature of the violation; b. evidence or clues of the violation;
   c. the influence or consequences of the violation;
   d. statutory regulations in the capital market sector violated; and e. other matters necessary for the Examination;
5. The LHP is compiled clearly, in detail, and concisely and contains a scope appropriate to the purpose of the Examination containing at least:
   a. brief information regarding the case; b. the purpose of the Examination;
   c. the basis for the Examination;
   d. statutory regulations suspected to have been violated; e. the scope or object of the Examination; f. facts from the Examination results; g. fact analysis; h. legal analysis; and
   i. conclusions and recommendations.
6. The description and conclusions of the LHP are supported by sufficient reasons and evidence regarding the existence or non-existence of violations of statutory regulations in the capital market sector, with the provision:
   a. LHP conclusions can be:

1. evidence of administrative violations of statutory regulations in the capital market sector is found;
2. no evidence of administrative violations of statutory regulations in the capital market sector is found;
3. evidence of the beginning of criminal acts in the capital market sector is found; and/or
4. no evidence of the beginning of criminal acts in the capital market sector is found;
   b. in the event that the LHP conclusion finds evidence of administrative violations of statutory regulations in the capital market sector, the Examiner can recommend administrative sanctions, orders for certain actions, and/or written orders;
   c. in the event that the LHP conclusion finds evidence of the beginning of criminal acts in the capital market sector, the Examiner can recommend:
5. escalating to the investigation stage; or
6. not escalating to the investigation stage accompanied by a proposal for the determination of administrative actions in the form of administrative sanctions and/or written orders; and
   d. in the event that the LHP conclusion finds no evidence of administrative violations of statutory regulations in the capital market sector as referred to in letter a point 2) and no evidence of the beginning of criminal acts in the capital market sector as referred to in letter a point 4), the Examination is stopped.

This copy is in accordance with the original
Director of Law 1
Legal Department signed
Mufli Asmawidjaja

V. CLOSING
The provisions in this Financial Services Authority Circular Letter shall take effect on the date of determination.
Determined in Jakarta on May 25, 2022
HEAD OF THE EXECUTIVE
FOR CAPITAL MARKET SUPERVISION
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
HOSEN

APPENDIX
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 7 /SEOJK.04/2022 CONCERNING PROCEDURES FOR EXAMINATION IN THE CAPITAL MARKET SECTOR

LETTER OF STATEMENT REFUSING REQUEST FOR INFORMATION That on this day ... date ... month ... year ..., located at ....., I, the undersigned:
Name : .….
Identity Number
(ID Card/Driver's License/Passport)
: .….
(Preferred ID Card)
Occupation : .….
Place/Date of Birth : .….
Domicile Address : .….
ID Card Address : .….
Mobile Phone No. : .….
Email Address : .…. as the examined party, hereby declare REFUSING to be examined by the OJK Examiner based on the Examination Order Number SPRIN-..…/PM.1/RIKSA/..…/… dated .…. and Summons Number S-…./PM.121/… dated….. concerning the Examination as referred to in Article 100 of Law Number 8 of 1995 concerning the Capital Market and Article 9 letter c of Law Number 21 of 2011 concerning the Financial Services Authority. Thus this statement is signed with full consciousness and responsibility and is willing to bear all risks resulting from this refusal. ….. (place), ….. (date, month) ….. ….. (signature) ….. (Name)

Witness/OJK Examiner:

1. ….. (Name)
   .....
   ….. (signature)
2. ….. (Name)
   .....
   ….. (signature)
3. ….. (Name)
   .....
   ….. (signature) etc.

LETTER OF STATEMENT REFUSING TO SIGN EXAMINATION MINUTES That on this day ..… date .…. month ….. year …., located at ….., I, the undersigned:
Name : .….
Identity Number
(ID Card/Driver's License/Passport)
: .….
(Preferred ID Card)
Occupation : .….
Place/Date of Birth : .….
Domicile Address : .….
ID Card Address : .….
Mobile Phone No. : .….
Email Address : .…. as the examined party, hereby declare REFUSING to sign the OJK Examination Minutes based on the Examination Order Number SPRIN-..…/PM.1/RIKSA/..…/….. dated .…. and Summons Number S-…./PM.121/… dated …… concerning the Examination as referred to in Article 100 of Law Number 8 of 1995 concerning the Capital Market and Article 9 letter c of Law Number 21 of 2011 concerning the Financial Services Authority. Thus this statement is signed with full consciousness and responsibility and is willing to bear all risks resulting from this refusal. ….. (place), ….. (date, month) ….. ….. (signature) ….. (Name)

Witness/OJK Examiner:

1. ….. (Name)
   .....
   ….. (signature)
2. ….. (Name)
   .....
   ….. (signature)
3. ….. (Name)
   .....
   ….. (signature) etc.

STATEMENT OF REFUSAL TO PROVIDE DATA/DOCUMENTS

DURING ON-SITE EXAMINATION

That on this day ....., date ...., month ..... year ...., located at ....., I, the undersigned:

Name : ....
Identity Number
(ID Card/Driver's License/Passport)
: .... (ID Card is preferred)
Occupation : ....
Place/Date of Birth : ....
Residential Address : ....
ID Card Address : ....
Mobile Phone No. : ....
Email Address : ....

as the party being examined, hereby declares REFUSAL to provide data/documents to the OJK examiner based on the Examination Order Number SPRIN-.../PM.1/RIKSA/.../..... dated .... and Task Order No. ST-.../PM-121/... dated .... which concerns the Examination as referred to in Article 100 of Law Number 8 of 1995 concerning the Capital Market and Article 9 letter c of Law Number 21 of 2011 concerning the Financial Services Authority.

This statement is signed with full awareness and responsibility and I am willing to bear all risks resulting from this refusal.

..... (place), ..... (date, month) ....
..... (signature)
..... (Name)

OJK Witness/Examiner:

1. ..... (Name)
   ..... (Position/Employee ID)
   ..... (signature)
2. ..... (Name)
   ..... (Position/Employee ID)
   ..... (signature)
3. ..... (Name)
   ..... (Position/Employee ID)
   ..... (signature) and so on.

MINUTES OF

HANDOVER OF DATA AND/OR DOCUMENTS

------ That on this day ......... date .... month ......... year ..., at .... WIB, the OJK Examiners below:

Name : ....
Employee ID : ....
Examiner Position : ....
Name : ....
Employee ID : ....
Examiner Position : ....

hereby acting as Examiners based on the Examination Order Number SPRIN-.../PM.1/RIKSA/.../..... dated ...., have conducted the Examination as referred to in Article 100 of the Capital Market Law Number 8 of 1995 and Article 9 letter c of the Financial Services Authority Law Number 21 of 2011, have received data/documents from:

Name : ....
Identity Number
(ID Card/Driver's License/Passport)
: .... (ID Card is preferred)
Occupation : ....
Place/Date of Birth : ....
Residential Address : ....
ID Card Address : ....
Mobile Phone No. : ....
Email Address : ....

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

Data and/or documents submitted:

No.	Name of Data and/or Document	Quantity	Remarks
1.	....	....	In (softcopy/hardcopy/original)*
....	....	....	....

-------- This minutes is made with full responsibility -------

..... (place), ..... (date, month) ....

The Deliverer, The Receiver,
..... (signature)
..... (Name)
..... (signature)
..... (Name)

Established in Jakarta on 25 May 2022
EXECUTIVE HEAD
OF CAPITAL MARKET SUPERVISOR
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
HOESEN