Prudential Principles for Commercial Banks Outsourcing Part of Their Work to Third Parties

To:

1. The Board of Directors of Conventional Commercial Banks; and
2. The Board of Directors of Islamic Commercial Banks;

ATTACHED COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 11/SEOJK.03/2017 CONCERNING PRUDENTIAL PRINCIPLES FOR COMMERCIAL BANKS OUTSOURCING PART OF THEIR WORK TO THIRD PARTIES

In light of the implementation of Financial Services Authority Regulation Number 9/POJK.03/2016 concerning Prudential Principles for Commercial Banks Outsourcing Part of Their Work to Third Parties (State Gazette of the Republic of Indonesia Year 2016 Number 21, Supplement to the State Gazette of the Republic of Indonesia Number 5845), it is necessary to regulate implementation provisions regarding Prudential Principles for Commercial Banks Outsourcing Part of Their Work to Third Parties in this Financial Services Authority Circular as follows:

I. GENERAL PROVISIONS

1. With the increasing complexity and diversity of Bank business activities and the increasingly high level of competition in the financial market, Banks are required to concentrate on core business activities and tasks. Therefore, when necessary, a Bank may outsource part of its support work to third parties (Outsourcing).

2. In conducting Outsourcing, a Bank must consider the risks that may arise from the implementation of Outsourcing, including operational risk, compliance risk, legal risk, and reputational risk. Therefore, a Bank is required to apply adequate prudential principles and risk management over the implementation of Outsourcing, as regulated in Financial Services Authority Regulation Number 9/POJK.03/2016 concerning Prudential Principles for Commercial Banks Outsourcing Part of Their Work to Third Parties, hereinafter referred to as the POJK on Outsourcing.

3. The application of prudential principles and risk management over the implementation of Outsourcing by a Bank includes:
   a. conducting thorough analysis and assessment of the Service Provider Company (SPC) to ensure that the selected SPC has good financial performance and reputation, adequate human resources, facilities and infrastructure, and experience so that the outsourced work can be carried out properly; b. drafting an Outsourcing agreement with the SPC in accordance with the minimum agreement scope required in the POJK on Outsourcing;
   c. applying effective risk management over the implementation of Outsourcing, including conducting regular supervision over the work performed by the SPC and taking early and effective corrective actions on issues that arise;
   d. complying with applicable laws and regulations; and e. taking efforts to protect customer rights and interests.

4. The implementation of Outsourcing does not eliminate the Bank's responsibility to protect customer rights and interests regarding the outsourced work performed by the SPC. Therefore, the Bank must ensure that the quality and manner of implementing the outsourced work comply with the standards set in the agreement, among others, by conducting regular supervision over the work performed by the SPC and taking immediate and effective corrective steps on identified issues, so that the work continues to run well and customer interests are protected.

5. In addition to observing the provisions of this Circular, the implementation of Outsourcing also refers to other regulations governing the implementation of Outsourcing for specific tasks more specifically, including regulations concerning the application of risk management in the use of information technology, the implementation of the Bank's internal audit function, the application of governance for Banks or the implementation of good corporate governance for Islamic commercial banks and Islamic business units, the conduct of card-based payment activities, the conduct of payment transaction processing, and the conduct of Indonesian Rupiah cash processing services.

II. REQUIREMENTS AND PROCEDURES FOR IMPLEMENTING OUTSOURCING

1. Tasks that can be outsourced are support tasks, both in the Bank's business activity flow and in the Bank's support activity flow, with the following explanation:
   a. Bank business activities are as referred to in Law Number 7 of 1992 concerning Banking as amended by Law Number 10 of 1998 and Law Number 21 of 2008 concerning Islamic Banking. Bank business activities include, among others, raising funds from the public, granting credit or financing, and buying, selling, or guaranteeing risks for oneself or for the interest and upon the order of customers. b. Bank support activities are activities conducted by the Bank other than Bank business activities, including activities related to human resources, risk management, compliance, internal audit, accounting and finance, information technology, logistics, and security.
   c. Flow is a series of tasks from start to finish of a Bank business activity or support activity, for example, the credit or financing granting flow covers marketing, feasibility analysis, approval, disbursement, monitoring, and credit or financing collection tasks.
   d. Core tasks are tasks that must exist in the Bank's business activity flow or support activity flow, so that if such tasks are absent, the relevant activity will be significantly disrupted or not carried out as intended. Examples of core tasks include the following:

   1. In the Bank's business activity flow, for example, in credit or financing granting activities, tasks such as account officer, credit or financing feasibility analyst, and tasks to grant credit or financing approval; in the fund-raising flow, tasks such as customer service, customer relations, and teller.
   2. In the Bank's support activity flow, for example, in risk management activities, tasks such as risk analyst; in the organizational development and human resource management flow, tasks such as organizational planning and development and human resource planning; and in the internal control activity flow, tasks such as internal audit.
      Examples of core tasks and their explanations are as set forth in Appendix I.A., which is an integral part of this Financial Services Authority Circular. e. Support tasks are tasks that do not have to exist in the Bank's business activity flow or support activity flow, so that if such tasks are absent, the relevant activity can still be carried out without significant disruption. Examples of support tasks include the following:
   3. In the Bank's business activity flow, for example, in the credit or financing granting flow, tasks such as call center staff or telephone operators, telemarketing, direct sales or sales representatives, and credit or financing collection; in the banking operations flow, tasks such as Bank cash management services.
   4. In the support activity flow, tasks performed by secretaries, schedulers, receptionists, cleaning staff, security guards, porters, couriers, data entry operators, and drivers.

2. To determine whether a task meets the criteria for a support task, the Bank conducts testing using at least the following criteria:
   a. Low risk, meaning tasks where failure will not significantly disrupt the Bank's operational activities. b. Do not require high competency qualifications in banking, meaning tasks that generally do not require high competency qualifications, whether formal education or knowledge or experience in banking. However, the Bank must still require the SPC to provide labor services with competency qualifications that meet the requirements of the outsourced work. The Bank may require specific competency qualifications for specific fields of work requiring special expertise that permanent employees may not always possess, for example, for support tasks related to information technology, security, collection, and cash management.
   c. Not directly related to decision-making processes that affect Bank operations, meaning tasks that do not contain aspects of analysis, consideration, and/or decision-making that affect Bank operations.
   Support tasks that meet the criteria in letters a, b, and c include, among others, call center staff or telephone operators, telemarketing, or data entry operators, because the potential loss resulting from the failure of such tasks is relatively low and does not significantly disrupt Bank operations, does not require high competency in banking, and is not directly related to decision-making processes affecting Bank operations. Examples of support tasks and their explanations are as set forth in Appendix I.B., which is an integral part of this Financial Services Authority Circular.

3. A Bank may conduct Outsourcing to an SPC that has obtained a license from the competent authority to provide labor services or to provide services in specific fields.

4. The handover of work to an SPC can be conducted through a work contracting agreement and/or a labor supply service agreement, as follows:
   a. A work contracting agreement in this Financial Services Authority Circular is a work agreement between a Bank and an SPC to carry out specific work contracting, emphasizing the results standards of the contracted work. For example, in a work contracting agreement for Bank product marketing, the Bank provides targets to the SPC regarding the number of prospective customers to be obtained within a certain period. b. A labor supply service agreement in this Financial Services Authority Circular is a work agreement between a Bank and an SPC to provide labor with specific qualifications for the implementation of specific tasks. For example, in a labor supply agreement for Bank product marketing, the Bank sets the number of labor required to carry out marketing and sets the minimum education level of the marketing personnel.

5. A Bank may only conduct Outsourcing agreements with SPCs that are Indonesian legal entities in the form of a Limited Liability Company (PT) or Cooperative.

6. To ensure compliance with requirements in selecting an SPC, the Bank conducts document research, analysis, and assessment of SPC requirements. The depth and intensity of analysis and assessment can be adjusted to the scale and complexity of the outsourced work.
   For example, analysis and assessment of SPCs for credit or financing marketing or collection must be deeper than analysis and assessment of SPCs for porters or cleaning staff.

7. In drafting an Outsourcing agreement, a Bank may consider the appropriateness of including minimum clauses in the Outsourcing agreement as regulated in the POJK on Outsourcing.
   Examples of minimum clauses include clauses requiring the SPC's willingness to provide access for examination by the Financial Services Authority and/or other competent authorities, and clauses requiring the parties to protect the rights and interests of Bank customers. These minimum clauses are more suitable for Outsourcing agreements for support tasks in the Bank's business activity flow, such as marketing, credit or financing collection, and Bank cash management.

8. In the event that outsourced work requires certification from an institution that has obtained a license from the National Professional Certification Body or specific training related to specific tasks, such as security work, the Bank must require the SPC to fulfill such certification or specific training in the Outsourcing agreement.

III. HANDOVER OF WORKS NOT COVERED BY OUTSOURCING

1. The handover of work that is not covered by Outsourcing as referred to in this Financial Services Authority Circular is:
   a. handover of work to the Bank's headquarters or regional offices located abroad, parent companies, and other entities within the same Bank business group, both domestically and abroad; b. handover of consulting services or specialized expertise services; and
   c. handover of goods and building maintenance services.

2. The handover of work to the Bank's headquarters or regional offices located abroad, parent companies, and other entities within the same Bank business group, both domestically and abroad, as in item 1.a., remains subject to laws and regulations, including regulations concerning the application of risk management in the Bank's use of information technology, the implementation of the Bank's internal audit function, the application of governance for Banks, the implementation of good corporate governance for Islamic commercial banks and Islamic business units, and card-based payments, while observing the appropriateness and fairness of the handover of such work.
   Examples of handover of work to the Bank's headquarters or regional offices located abroad, parent companies, and/or other entities within a business group that are not covered by the Outsourcing provisions include:
   a. work conducted as a form of supervision by the Bank's headquarters or regional offices located abroad, or parent companies, for example, supervision of market risk and credit risk limits; b. work that cannot be conducted by branches of banks located abroad or Bank subsidiaries due to lack of expertise in certain fields and being consultative in nature, for example, review of risk measurement models and audit personnel with expertise in certain fields (such as information technology); and/or
   c. work that is part of the Bank's business process conducted at the Bank's headquarters or regional offices located abroad, parent companies, or other entities within the same Bank business group, for example, financial report reconciliation and payroll processing.

3. Examples of handover of consulting services or specialized expertise services as in item 1.b. include legal consultant services, notary services, independent appraiser services, and public accountant services.

4. Examples of handover of goods and building maintenance services as in item 1.c. include maintenance of air conditioning units, photocopiers, computers, and printers, as well as Bank office building maintenance services.

IV. PRUDENTIAL PRINCIPLES AND RISK MANAGEMENT APPLICATION IN OUTSOURCING CREDIT OR FINANCING COLLECTION AND CASH MANAGEMENT

A. Credit or Financing Collection Tasks

1. The scope of credit or financing collection in these provisions is general credit or financing collection, including home ownership credit or financing, motor vehicle credit or financing, unsecured credit or financing, and credit cards or financing cards (Sharia cards).

2. Credit or financing collection tasks that can be outsourced are credit or financing collection with "Non-Performing" quality according to regulations governing the assessment of commercial bank asset quality and Financial Services Authority regulations concerning the Assessment of Islamic Commercial Bank and Islamic Business Unit Asset Quality.

3. The Outsourcing cooperation agreement for credit or financing collection between the Bank and the SPC must be conducted in writing in the form of a labor supply service agreement.

4. In the Outsourcing of credit or financing collection, the Bank must have and apply written policies and procedures regarding credit or financing collection, including:
   a. informing the debtor that the collection of the debtor's obligations has been handed over to the SPC; b. ensuring that credit or financing collection by the SPC is conducted in a manner that does not violate the law;
   c. drafting credit or financing collection ethics to be included in the Outsourcing agreement;
   d. ensuring that collection personnel have received adequate training related to collection tasks and collection ethics according to regulations; e. accounting for the identity of each collection personnel; and f. ensuring that in conducting collection, the SPC complies with the main points of credit or financing collection ethics contained in the Outsourcing agreement, including:

   1. collection is prohibited from being conducted using threats, violence, and/or actions that humiliate the debtor;
   2. collection is prohibited from being conducted using physical or verbal pressure;
   3. collection is prohibited from being conducted to parties other than the debtor;
   4. collection using communication media is prohibited from being conducted continuously in a disruptive manner;
   5. collection may only be conducted between 08:00 and 20:00 local time of the debtor's domicile;
   6. collection outside the time as in item 5) may only be conducted based on the debtor's consent and/or agreement;
   7. collection officers are required to use official identity cards issued by the Bank, complete with the officer's photo; and
   8. collection may only be conducted at the collection address or debtor's domicile.
      g. The Bank must ensure that the SPC also complies with the collection ethics established by the association.

5. In the event that it is necessary to summon the debtor to attend a meeting with collection officers, the Bank must at least observe:
   a. the meeting is conducted at the Bank's office; b. the meeting room is equipped with Closed Circuit Television (CCTV);
   c. Bank parties are present at the meeting; and
   d. all conversations in the meeting are recorded and minutes are made known to the Bank parties.

B. Cash Management

1. Cash management is a series of tasks conducted by the SPC to manage the Bank's physical cash (both in Rupiah and foreign currencies), including:
   a. distribution (delivery and/or pickup) of cash including escort (cash distribution); b. counting, sorting, and packaging of cash (cash processing);
   c. storage of cash in the vault (cash in save); and/or
   d. filling automated teller machines (ATM) with cash and/or withdrawal of cash from cash deposit machines (CDM) including monitoring of ATMs and/or CDMs.

2. In conducting Outsourcing of cash management, the Bank may only conduct Outsourcing agreements with SPCs that meet the following requirements:
   a. Indonesian legal entity in the form of a Limited Liability Company (PT); b. having a valid operational license from the competent authority as a cash and valuables armored transport service company;
   c. having standard operating procedures (SOPs) for security in cash management;
   d. having good financial performance assessed based on the SPC's capital, liquidity, and profitability; e. having a good reputation assessed based on the SPC's track record and compliance with applicable laws and regulations and previous Outsourcing agreements; f. having sufficient experience assessed based on the company's and/or management's experience in handling outsourced work; g. having human resources in quantity and quality that can support the implementation of the Bank's cash management. Specifically, for SPCs whose work is directly related to counting, sorting, and packaging cash (cash processing), must have human resources with expertise to recognize the characteristics of genuine Rupiah notes, expertise to sort between fit and unfit Rupiah notes, and expertise to operate money counting and sorting machines; and h. having money counting and sorting machines that can detect the physical authenticity of money, having a vault to store Rupiah cash, and having infrastructure and transport vehicles that meet standard security requirements.

3. The SPC's obligation to have a contingency plan, which is included in the Bank's cash management Outsourcing agreement, includes guaranteeing and insuring all Bank cash under the SPC's management.

4. The SPC's willingness to provide access for examination to the Financial Services Authority and/or other competent authorities together with the Bank when necessary, which is included in the Bank's cash management Outsourcing agreement, includes among others the obligation of the Bank's cash management SPC to:
   a. provide data and information to the Financial Services Authority and/or other competent authorities, either directly or through the Bank, regarding human resources, as well as facilities and infrastructure used in performing tasks; and b. provide access to the Financial Services Authority and/or other competent authorities to conduct examinations of the SPC's operational activities for Bank cash management, including examinations of sortation quality standardization, adequacy of facilities and infrastructure, security systems, and the quality of human resources performing physical processing of Rupiah notes.

5. In order to implement effective internal control over the Bank's cash management Outsourcing, the Bank conducts supervision over the work performed by the SPC, which must at least cover:
   a. supervision over the accuracy of calculations and the quality of sortation results of the SPC's work; and b. ensuring that the SPC follows up on recommendations provided by the Financial Services Authority and/or other competent authorities from the results of supervision over the SPC's operational activities.

V. REPORTING
A. Outsourcing Reports

1. Banks conducting Outsourcing prepare Outsourcing Reports, consisting of:
   a. Outsourcing Plan Report, Changes and/or Additions to the Outsourcing Plan; and b. Problematic Outsourcing Report.
2. The Outsourcing Plan Report, Changes and/or Additions to the Outsourcing Plan as referred to in item 1.a are prepared as follows:
   a. The Outsourcing Plan Report contains plans for Outsourcing of work that has not previously been outsourced. Meanwhile, the Report on Changes and/or Additions to the Outsourcing Plan contains changes to the scope of work already outsourced and/or additions of work to be outsourced. An example of a change in the scope of work already outsourced is when a bank in the current year plans to expand the scope of marketing outsourcing from credit card or financing card (sharia card) marketing to credit card or financing card (sharia card) and unsecured credit or financing. An example of an addition to the outsourcing plan to be carried out is when a bank in the current year plans to carry out marketing outsourcing for credit cards or financing cards (sharia cards) which were previously not included in the Outsourcing Plan Report. Extensions of the Service Provider Agreement (PPJ) and replacements of the Service Provider (PPJ) for work that has already been outsourced are not included in the Outsourcing Plan Report, Changes and/or Additions to the Outsourcing Plan. b. The Outsourcing Plan Report for the next 1 (one) year must be submitted no later than December 31 each year. Meanwhile, the Report on Changes and/or Additions to the Outsourcing Plan must be submitted no later than June 30 of the current year. The Outsourcing Plan Report, Changes and/or Additions to the Outsourcing Plan are submitted using the reporting format as set forth in Appendix II.A, which is an integral part of this Financial Services Authority Circular.
   c. The Outsourcing Plan Report, Changes and/or Additions to the Outsourcing Plan must contain at least information regarding:

1. type of work performed via Outsourcing;
2. general description and scope of work;
3. type of Outsourcing agreement;
4. estimated number of Outsourcing workforce required;
5. contract duration;
6. purpose of Outsourcing;
7. analysis of estimated costs and benefits; and
8. risk analysis and risk mitigation.
   d. Banks that do not have plans to conduct Outsourcing as explained in letter a must still submit the Outsourcing Plan Report by writing "Nil" no later than December 31.

3. The Problematic Outsourcing Report as in item 1.b is prepared as follows:
   a. The Problematic Outsourcing Report contains a description of outsourcing problems, including problems faced by the Bank and the Service Provider (PPJ) that have the potential to significantly increase the Bank's risk and/or will disrupt the continuity of the execution of work performed via Outsourcing. Examples of outsourcing problems include violations of regulations and legislation, contract violations, lawsuits, customer complaints, employee strikes, and internal disputes at the PPJ, both among management and between management and employees. b. The Problematic Outsourcing Report as referred to in item 1.b must be submitted no later than 7 (seven) working days after the problem is known, using the reporting format as set forth in Appendix II.B, which is an integral part of this Financial Services Authority Circular.
4. The Problematic Outsourcing Report must contain at least information regarding:
   a. type of work performed via Outsourcing; b. name of the PPJ;
   c. description of the problem that occurred; and
   d. steps taken by the Bank to overcome the problem that occurred.
5. In determining steps to overcome outsourcing problems, the Bank must ensure that work performed via Outsourcing continues to be executed well even if problems occur in the Outsourcing.
   B. Submission of Reports
   Reports as in letter A are submitted to the Financial Services Authority at the address:
   a. Department of Supervision of the Relevant Bank or Department of Islamic Banking, for Banks whose headquarters or branches of banks located outside the country are situated in the Special Capital Region of Jakarta Province; or b. Regional Office of the Financial Services Authority or Local Office of the Financial Services Authority according to the area where the bank's headquarters is located.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Yuliana
VI. CLOSING
At the time this Financial Services Authority Circular takes effect, Bank Indonesia Circular Number 14/20/DPNP dated June 27, 2012 concerning Prudential Principles for Commercial Banks Conducting Partial Handover of Work Execution to Third Parties is repealed and declared invalid. The provisions in this Financial Services Authority Circular take effect on the date of determination. Determined in Jakarta on March 17, 2017 EXECUTIVE HEAD OF BANKING SUPERVISOR FINANCIAL SERVICES AUTHORITY, signed NELSON TAMPUBOLON

APPENDIX I
FINANCIAL SERVICES AUTHORITY CIRCULAR
NUMBER 11 /SEOJK.03/2017
CONCERNING
PRUDENTIAL PRINCIPLES FOR COMMERCIAL BANKS CONDUCTING PARTIAL HANDOVER OF WORK EXECUTION TO THIRD PARTIES

A. EXAMPLES OF CORE WORK AND EXPLANATIONS
No. Name or Nature of Work Short Description

1. Customer Service
   (Customer Service)
   Customer service work is categorized as core work because through this work there is initial interaction between the Bank and banking customers or consumers to open savings accounts or obtain information regarding products and/or specific Bank activities. Customer service work is also closely related to the application of prudential principles and Bank risk management through the implementation of Anti-Money Laundering and Prevention of Terrorist Financing, education to customers so that customers have adequate understanding regarding products and/or Bank activities, customer maintenance to ensure the continuity of a Bank's business, and protection of customer rights and interests and banking consumers, particularly regarding customer data confidentiality. Thus, if this work does not exist, Bank activities will be severely disrupted or not implemented as they should be.
2. Teller
   Teller work is categorized as core work because this work serves as the 'gateway' for

No. Name or Nature of Work Short Description customers and banking consumers to make deposits, cash checks and bills, send money, and other banking services.
If this work does not exist, Bank activities, particularly those related to cash and non-cash financial transactions, will be severely disrupted or not implemented as they should be.
3. Marketing
Marketing work is considered core work if the responsibilities attached to this work also include analysis, consideration, and recommendations for decision-making related to marketing activities conducted. Marketing work for specific Bank products is subject to regulations specifically governing those products. For example, structured product marketing is subject to Financial Services Authority Regulations concerning Prudential Principles in Carrying Out Structured Product Activities for Commercial Banks, which stipulate that structured product marketing must be carried out by permanent Bank employees.
4. Planning and
Development of Information
Technology (IT)
Work related to IT planning and development is categorized as core work and therefore cannot be outsourced.
The definition of IT planning and development is strategic IT planning and development (strategic IT planning and development or IT blue print) that provides formulations regarding the direction of future IT development for the Bank.

No. Name or Nature of Work Short Description

B. EXAMPLES OF SUPPORTING WORK AND EXPLANATIONS No. Name or Nature of Work Short Description Marketing Work

1. Marketing Through
   Telephone (Telemarketing)
   Marketing work for banking products and/or activities via telephone to banking customers or consumers is supporting work and the responsibilities attached to this work are limited only to product offers or offers to become Bank customers. Tasks related to analysis, consideration, and recommendation of decision-making related to such marketing activities are carried out by other personnel, functions, or marketing units.
2. Direct Sales
   (Direct Sales) or Sales
   Representative
   Marketing work for banking products and/or activities directly to banking customers or consumers is supporting work and the responsibilities attached to this work are limited only to product offers or offers to become Bank customers. Tasks related to analysis, consideration, and recommendation of decision-making related to such marketing activities are carried out by other personnel, functions, or marketing units.

No. Name or Nature of Work Short Description
Collection Work
3. Credit or Financing
Collection
Credit or financing collection work with "Bad" quality status according to regulations regarding the assessment of commercial bank asset quality and Financial Services Authority regulations governing the Assessment of Quality of Assets of Islamic Commercial Banks and Sharia Business Units. The definition of credit or financing in these provisions is broad, including home ownership credit or financing, motor vehicle credit or financing, unsecured credit or financing, and credit cards or financing cards (sharia cards). Bank Cash Management Related Work
4. Cash Distribution
(Cash Distribution)
Delivery and/or pickup of cash along with escorting.
5. Cash Processing
(Cash Processing)
Counting, sorting, and packaging of cash.
6. Cash Storage
(Cash in Save)
Storage of cash in the vault.
7. Automated
Teller Machine (ATM)
Refilling
Work of refilling ATMs with cash and/or withdrawing cash from cash deposit machines (CDM) along with monitoring ATMs and/or CDMs.
Other Work
8. Payment Point
Cashier
Payment point cashiers are officers receiving payments for electricity bills, phones, mobile phones, etc., at payment locations designated by the Bank.
The Bank must consider the type of transaction, transaction volume, and risk exposure of payment point cashier work in testing compliance with supporting work criteria.
9. Cashier Receiving
Deposits of Credit or Financing
From Micro Business Debtors
The cashier receiving deposits of credit or financing from micro business debtors is an officer receiving deposits of credit or financing from micro business debtors conducted at the location of the micro business debtor, for example in markets. The definition of micro business debtor is the micro business debtor as referred to in legislation regarding micro, small, and medium enterprises.
10. Receptionist
Receptionists are officers receiving guests, banking customers, or consumers, including directing guests, banking customers, or consumers to the intended personnel or work units at the Bank.
It may also include receiving calls from banking customers or consumers to direct them to the intended personnel or work units at the Bank.
11. Data Inputters
Data inputting is work of inputting data across all work units at the Bank, where duties and responsibilities do not cover processes of analysis, consideration, or decision-making that affect Bank operations.

No. Name or Nature of Work Short Description
12. Telephone Service Center
(Call Center) or
Telephone Operator
Telephone service centers (call centers) or telephone operators are work of receiving calls from banking customers or consumers to provide information or answer general questions and direct them to the intended personnel or work units at the Bank.
13. Help desk
Help desk is work of providing information and assistance to Bank employees to help solve problems related to IT products used at the Bank.
14. Secretary
Secretaries perform administrative work supporting superiors, with task scopes including routine work such as opening and writing letters, storing archives or letters, creating superior activity agendas, and carrying out administrative tasks and other tasks from superiors.
15. Security Services
(Security)
Security services (security) refer to the provision of security services at the Bank.
16. Courier (Messenger)
Couriers (messengers) refer to the provision of mail, document, or card delivery services, among others, to Bank work units and offices, to external agencies, or to Bank customers.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Yuliana
No. Name or Nature of Work Short Description
17. Drivers
Self-explanatory.
18. Cleaning Staff
Self-explanatory.
19. Porters
Self-explanatory.
Determined in Jakarta on March 17, 2017
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signed
NELSON TAMPUBOLON

APPENDIX II
FINANCIAL SERVICES AUTHORITY CIRCULAR
NUMBER 11 /SEOJK.03/2017
CONCERNING
PRUDENTIAL PRINCIPLES FOR COMMERCIAL BANKS CONDUCTING PARTIAL HANDOVER OF WORK EXECUTION TO THIRD PARTIES

A. OUTSOURCING PLAN REPORT, CHANGES AND/OR ADDITIONS TO THE OUTSOURCING PLAN 1) Bank Name :
Report Date :
No.
Type of Work
Performed via
Outsourcing
General
Description and
Scope of Work 2)
Type of
Outsourcing
Agreement 3)
Estimated
Number of
Outsourcing
Workforce
Required
Duration of
Contract
Purpose of
Outsourcing
Analysis of Estimated
Costs and
Benefits
Analysis of Risk and
Risk Mitigation
Remarks 4)
Remarks

1. Strike out what is not needed.
2. General description and scope of work briefly describe the work performed via Outsourcing and the office location where the work performed via Outsourcing takes place.
3. Type of Outsourcing agreement made consists of contracting agreements and/or labor supply agreements.
4. For example: for the report dated June 30, fill in remarks if the reported plan is an addition or change from what was reported in the December 31 report of the previous year.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Yuliana
B. PROBLEMATIC OUTSOURCING REPORT
Bank Name :
Report Date :
No.
Type of Work
Performed via
Outsourcing
Name of
Service
Provider Company
General
Description of Problems 1)
Steps Taken by the Bank to Overcome the Problems Remarks

1. General description of problems briefly describes the problem that occurred, potential risks generated, location, time of occurrence of the problem, and time the problem was known.
   Determined in Jakarta on March 17, 2017
   EXECUTIVE HEAD OF BANKING SUPERVISOR
   FINANCIAL SERVICES AUTHORITY, signed
   NELSON TAMPUBOLON