Regulation of Member of Board of Governors Number 9 of 2024 on the Organization of Central Counterparty

REGULATION OF MEMBER OF BOARD OF GOVERNORS NUMBER 9 OF 2024 ON THE ORGANIZATION OF CENTRAL COUNTERPARTY BY THE BLESSINGS OF ALMIGHTY GOD MEMBER OF BOARD OF GOVERNORS OF BANK INDONESIA, Considering : a. that based on Law on the development and strengthening of the financial sector, the implementation of markets in the financial sector must be supported by financial market infrastructure that follows technological developments; b. that Bank Indonesia carries out the regulation, development, and supervision of financial market infrastructure integrated with the regulation, development, and supervision of money markets and foreign exchange markets;
c. that the implementation of financial market infrastructure
needs to be carried out by fulfilling the principles of security, effectiveness, efficiency, and reliability, paying attention to the aspects of interconnection, interoperability, and integration with other financial market infrastructure, and paying attention to applicable international principles and/or standards; d. that one of the financial market infrastructures that may be organized by parties other than Bank Indonesia is the central counterparty which is a systemic financial market infrastructure; e. that based on the considerations as referred to in point a, point b, point c, and point d, it is necessary to issue the Regulation of Member of Board of Governors on the Organization of Central Counterparty; Observing : Bank Indonesia Regulation Number 6 of 2024 on Money Markets and Foreign Exchange Markets (State Gazette of the Republic of Indonesia of 2024 Number 17/BI, Supplement to the State Gazette of the Republic of Indonesia Number 85/BI).

HAS DECIDED:
To enact : REGULATION OF MEMBER OF BOARD OF GOVERNORS ON THE ORGANIZATION OF CENTRAL COUNTERPARTY.
CHAPTER I
GENERAL PROVISIONS
Article 1
In this Regulation of Member of Board of Governors, the term definitions are:

1. Money Market is a part of the financial system that deals
   with:
   a. activities of issuing and trading financial instruments or debt securities with a term of no more than 1 (one) year; b. money lending transactions;
   c. interest rate derivative transactions; and
   d. other transactions that meet the characteristics of the Money Market, in rupiah or foreign currencies.

2. Foreign Exchange Market is a part of the financial system
   related to transaction activities involving the exchange of currencies from 2 (two) different countries and their derivatives but excludes the exchange of bank notes organized by foreign exchange business activities.

3. Financial Market Infrastructure is a system provided
   and/or operated by the organizer for use by participants in conducting transactions, clearing, settlement, reporting, and/or recording, in connection with payment transactions, securities transactions, derivative transactions, and/or other financial transactions.

4. Systemic Financial Market Infrastructure is Financial
   Market Infrastructure that is determined by the authorities as systemic Financial Market Infrastructure based on criteria in applicable international principles and/or standards, which can disrupt the stability of the financial system if there are disruptions and/or problems related to the implementation of its business activities.

5. Central Counterparty, hereinafter referred to as CCP, is an
   institution that positions itself between the parties conducting financial transactions, thus acting as a buyer for the seller and as a seller for the buyer.

6. Qualifying CCP is a CCP that has obtained a business
   license to conduct business activities as a CCP, including obtaining a license through an exemption and has obtained a license from the appropriate regulator or supervisor to operate as a CCP in accordance with the financial transactions facilitated by the CCP.

7. Novation is a process carried out by the CCP to place itself
   between the seller and the purchaser through terminating the initial contract between the seller and the purchaser, then replacing it with 2 (two) new contracts between the CCP and the seller and the CCP and the purchaser.

8. Open Offer is a process carried out by the CCP to position
   itself between the seller and the purchaser through a contract between the CCP and the seller and the CCP and the purchaser at the time of the transaction, without any initial contract between the seller and the purchaser.

9. Clearing is a process carried out after a transaction occurs,
   which includes the activities of reconciling, confirming, and calculating the rights and obligations of the parties, including netting calculations, which show the final position of the rights and obligations of the parties before a settlement is made.

10. CCP Member, hereinafter referred to as Member, is a
    participant who meets the requirements to use Clearing services based on the criteria determined by the CCP.

11. Default Fund Contribution is a fund deposited by a
    Member to the CCP as part of risk mitigation in the event of default by the Member.

12. Initial Margin is funds and/or securities deposited by a
    Member to the CCP when conducting a financial transaction to mitigate potential changes in the Member's position in the event of a default.

13. Variation Margin is funds and/or securities deposited by a
    Member to the CCP for exposure resulting from the mark￾to-market of a financial transaction.

14. CCP Acting as an Agent, hereinafter referred to as Tri-Party
    Agent, is a CCP that performs other functions by acting as an agent for transaction participant after the implementation of a financial transaction (post-trade).

15. Business Day is a business day of Bank Indonesia,
    excluding Bank Indonesia's limited operational business days.
    CHAPTER II
    REGULATION, DEVELOPMENT, AND SUPERVISION FRAMEWORK FOR CCP
    Part One
    General
    Article 2
    (1) Bank Indonesia shall regulate, develop, and supervise the Financial Market Infrastructure in the form of CCP. (2) The CCP as referred to in section (1) shall be organized in accordance with the following criteria:

a. adhering the principles of safety, effectiveness, efficiency, and reliability; b. observing the aspects of interconnection, interoperability, and integration with other Financial Market Infrastructure; and
c. complying with applicable international principles
and/or standards.
(3) In adhering the principles as referred to in section (2) point a and observing the aspects as referred to in section (2) point b, CCP is required to, at a minimum, undertake the following actions:
a. prepare and enforce rule books in accordance with the provisions determined by Bank Indonesia; b. provide facilities and infrastructure that are within the scope of its business activities;
c. carry out operational activities in accordance with the
scope of its business activities; d. provide information technology systems and access to data and information for supervision of CCP implementation; and e. endeavor to guarantee the reliability, availability, and security of the implementation of CCP within the scope of its business activities.
Part Two
CCP Functions
Article 3
(1) The CCP as referred to in Article 2 has functions including:
a. Clearing organization; b. risk management; and
c. Novation and/or Open Offer.
(2) The Novation and/or Open Offer functions as referred to in
section (1) point c shall be organized by CCP based on:
a. business license granted by Bank Indonesia; and/or b. recommendation from Bank Indonesia after CCP obtains a business license from Bank Indonesia.
Article 4
(1) The CCP as referred to in Article 2 may perform other functions as a Tri-Party Agent. (2) CCP that will carry out another function as a Tri-Party Agent as referred to in section (1) is required to obtain a recommendation from Bank Indonesia.
Part Three
Financial Instruments and Financial Transactions Facilitated by CCP

Article 5
(1) The CCP may perform the functions as referred to in Article 3 and Article 4 for:
a. Money Market transactions and Foreign Exchange Market transactions; and b. other financial instruments and/or financial transactions recommended and/or determined by Bank Indonesia. (2) Money Market transactions and Foreign Exchange Market transactions as referred to in section (1) point a which will be facilitated by CCP are types of Money Market transactions and Foreign Exchange Market transactions which have been standardized and determined by Bank Indonesia to be cleared through CCP. (3) Determination of the types and standardization of Money Market transactions and Foreign Exchange Market transactions as referred to in section (2) shall be carried out in accordance with the provisions of Bank Indonesia on Money Market transactions and the provisions of Bank Indonesia on Foreign Exchange Market transactions. (4) Other financial instruments and/or financial transactions recommended and/or determined by Bank Indonesia as referred to in section (1) point b shall be published on the Bank Indonesia website and/or other media determined by Bank Indonesia.
Part Four
Application of International Principles and/or Standards for CCP
Article 6
(1) The CCP as referred to in Article 2 shall be designated as a Systemic Financial Market Infrastructure as regulated in Bank Indonesia Regulation on the Money Market and Foreign Exchange Market. (2) The CCP as referred to in section (1) is required to comply with applicable international principles and/or standards as referred to in Article 2 section (2) point c in the form of:
a. principles for financial market infrastructures; and b. other international principles and/or standards relating to CCP, as determined by Bank Indonesia. (3) The obligation to comply with the applicable international principles and/or standards as referred to in section (2) point a shall carried out not later than 1 (one) year after the CCP obtains a business license from Bank Indonesia. (4) Principles for financial market infrastructures as referred to in section (2) point a shall include:
a. aspects of CCP organization, including:

1. legal basis;

2. governance;

3. comprehensive risk management framework;

4. credit risk;

5. collateral;

6. margin;

7. liquidity risk;

8. settlement;

9. fund settlement;

10. physical delivery settlement;

11. exchange rate settlement system

12. rules and procedures for default in the form of an
    event of default by a Member;

13. segregation and portability;

14. general business risk;

15. custodial and investment risk;

16. operational risk;

17. access and participation requirements;

18. tiered participation arrangements;

19. interconnectedness of Financial Market
    Infrastructure;

20. efficiency and effectiveness;

21. communication procedures and standards; and

22. transparency on rule books as well as market
    data; and b. aspects of Bank Indonesia's responsibility in regulating and supervising CCP. (5) Other international principles and/or standards relating to CCP as referred to in section (2) point b shall be published on the Bank Indonesia website and submitted by Bank Indonesia to CCP through letter.
    Article 7
    In implementing the aspect of responsibility as referred to in
    Article 6 section (4) point b, Bank Indonesia shall publish
    guidelines on the principles of organizing and supervising CCP on the Bank Indonesia website and/or other media determined by Bank Indonesia.
    Article 8
    In order to implement applicable international principles and/or standards, CCP is required to employ established communication means and procedures to facilitate business activities as CCP.
    Part Five
    CCP Strengthening Policy
    Article 9

(1) Bank Indonesia may establish CCP strengthening policies, which shall include:
a. Bank Indonesia's capital participation in CCP; b. strengthening of the institutional aspects of CCP;
c. strengthening of the business activity aspects of CCP;
and/or d. strengthening of other CCP as determined by Bank Indonesia. (2) Strengthening of the institutional aspects of CCP as referred to in section (1) point b shall include:
a. strengthening of corporate organs; b. capital;
c. implementation of corporate action; and
d. strengthening of other institutional aspects determined by Bank Indonesia. (3) Strengthening of the business activity aspects of CCP as referred to in section (1) point c shall include:
a. recommending or not recommending CCP to undertake or not undertake certain business activities; and b. strengthening other aspects of business activities as determined by Bank Indonesia. (4) CCP is required to comply with the CCP strengthening policy as referred to in section (1) determined by Bank Indonesia.
Part Six
Administrative Sanctions
Article 10
CCP that violates the provisions as referred to in Article 2
section (3), Article 4 section (2), Article 6 section (2), Article 8,
and/or Article 9 section (4) shall be subject to administrative sanctions in the form of:
a. written reprimand; b. temporary, partial, or complete suspension of all business activities of CCP; and/or
c. revocation of CCP business license.
CHAPTER III
ORGANIZATION OF CCP ACTIVITIES
Part One
CCP Duties and Activities
Article 11
(1) In carrying out the functions as referred to in Article 3, the CCP has the following duties:

a. administer the Money Market transaction and Foreign Exchange Market transaction portfolios as well as other financial transactions correctly and accurately, on time, consistently, and transparently; b. manage risks by establishing standard operating procedures related to risk management;
c. administer Default Fund Contribution, Initial Margin,
and Variation Margin; d. carry out routine monitoring, evaluation, and control of the transaction portfolio; and e. carry out other duties as determined by Bank Indonesia. (2) Other duties as referred to in section (1) point e shall be published on the Bank Indonesia website and submitted by Bank Indonesia to the CCP through letter.
Article 12
(1) In carrying out the functions as referred to in Article 3 and the duties as referred to in Article 11, the CCP shall carry out the following activities:
a. approve, reject, and terminate Members; b. impose sanctions against Members;
c. determine the amount of Default Fund Contribution,
Initial Margin, Variation Margin, and fee; d. determine the valuation method for the Initial Margin and Variation Margin submitted by Members; e. manage Default Fund Contribution, Initial Margin, and Variation Margin in accordance with the criteria and requirements determined by Bank Indonesia; f. execute Default Fund Contribution, Initial Margin, and Variation Margins, if Members experience an event of default; g. carry out close-out netting, early termination, and auction of the transactions of Members that experience an event of default; h. perform mark-to-market on Member positions a minimum of 1 (one) time in 1 (one) Business Day; and
i. carry out other activities as determined by Bank
Indonesia.
(2) Other activities as referred to in section (1) point i shall be published on the Bank Indonesia website and submitted by Bank Indonesia to the CCP through letter.
Article 13
(1) In organizing CCP, CCP is required to:
a. carry out the functions as referred to in Article 3 and the duties as referred to in Article 11;

b. carry out the activities as referred to in Article 12 professionally, objectively, in good faith, and full of responsibility; and
c. fulfill other obligations determined by Bank
Indonesia.
(2) Fulfillment of other obligations as referred to in section (1) point c shall be published on the Bank Indonesia website and submitted by Bank Indonesia to the CCP through letter.
Article 14
(1) CCP is required to ensure that the settlement process related to the settlement of obligations arising from financial transactions is carried out in a final and binding manner. (2) The settlement process as referred to in section (1) shall be carried out at the end of the Business Day on the value date. (3) If required, CCP may carry out settlement processes intraday or in real-time.
Article 15
(1) CCP shall settle funds using CCP funds held in an account at Bank Indonesia (central bank money). (2) In the event that the fund settlement as referred to in
section (1) cannot use CCP funds in an account at Bank
Indonesia (central bank money), the CCP may use CCP funds in an account at a commercial bank (commercial bank money). (3) In the event of settlements made using CCP funds held in an account at a commercial bank commercial bank money) as referred to in section (2), the CCP must manage the settlement risk, credit risk, and liquidity risk.
Part Two
CCP Rule Books
Article 16
(1) The establishment and implementation of rule books for the organization of CCP as referred to in Article 2 section (3) point a conducted with due consideration of the following factors:
a. conformity of CCP functions, duties, and activities; b. fulfillment of applicable international principles and/or standards as referred to in Article 6 section (2) as well as the laws and regulations relating to CCP; and
c. fulfillment of the principles of transparency, openness
of information, and accountability.

(2) In establishing rule books for the organization of CCP as referred to in section (1), CCP is required to:
a. conduct consultations with Bank Indonesia before formulating rule books for the organization of CCP; b. obtain approval from the CCP board of commissioners for rule books for the organization of CCP; and
c. submit rule books for the organization of CCP to Bank
Indonesia not later than 14 (fourteen) Business Days after rule books are enforced on Members.
Article 17
CCP is required to ensure that rule books for the organization of CCP as referred to in Article 16 contain at minimum:
a. criteria and/or requirements to become a Member in an objective, risk-based, and transparent manner, including Member evaluation; b. the rights and obligations of Members and CCP, including the policy on charging Members;
c. establishment of committees to support the organization of
CCP; d. policies and procedures for segregation and portability of Members transaction positions, Default Fund Contribution, Initial Margin, and Variation Margin; e. policies and procedures for the segregation and portability of CCP’s assets, receivables, and obligations from Member’ assets, receivables, and obligations; f. policies and procedures for handling defaults in the form of events of default of Members; and g. consumer protection and dispute resolution mechanisms.
Article 18
(1) The criteria and/or requirements to become a Member as referred to in Article 17 point a must be in accordance with the principles of CCP organization as referred to in Article 2 section (2) and fulfillment of the principles of transparency, openness of information, and accountability as referred to in Article 16 section (1) point c. (2) The CCP must monitor Member’s compliance with the established criteria and/or requirements that must be met. (3) The CCP must establish procedures for imposing sanctions in the form of suspension or dismissal for Members who violate and/or no longer meet the criteria and/or requirements as Members.
Article 19
(1) In determining policies and procedures for segregation and portability of Members’ transaction positions, Default Fund Contribution, Initial Margin, and Variation Margin as referred to in Article 17 point d, the CCP may determine

segregation and portability at the Member or customer level. (2) The CCP is required to separate the Default Fund Contribution, Initial Margin, and Variation Margin accounts of each Member. (3) The CCP is required to treat the Default Fund Contribution, Initial Margin, and Variation Margin belonging to the Member, including additional assets resulting from the Member’s financial transactions, as the Member’s property. (4) The CCP must ensure that the positions of trading, Default Fund Contribution, Initial Margin, and Variation Margin of a Member in the event of default may be transferred to one or more other Members.
Article 20
(1) In the event that CCP is declared bankrupt or liquidated, the assets belonging to Members under the control of the CCP may not be used to fulfill the CCP’s obligations to third parties and/or its creditors. (2) The provisions as referred to in section (1) shall also apply to receivables and obligations belonging to Members. (3) CCP that is declared bankrupt and/or liquidated is required to ensure that Member’s; assets, receivables, and obligations are returned to Members.
Article 21
(1) Policies and procedures for handling defaults in the form of default Members as referred to in Article17 point f shall be prepared to ensure that the CCP may take steps to handle losses, overcome liquidity pressures, and fulfill obligations. (2) The CCP must publish the policies and procedures as referred to in section (1) to Members. (3) The CCP must conduct trials and evaluations of policies and procedures for handling defaults in the form of default Members by involving Members and relevant stakeholders on a regular basis.
Part Three
Default Fund Contribution, Initial Margin, and Variation Margin
Article 22
(1) The Default Fund Contribution managed by CCP as referred to in Article 12 section (1) point e shall be in the form of funds. (2) The Initial Margin and Variation Margin managed by CCP as referred to in Article 12 section (1) point e shall be in the form of:
a. funds; and/or

b. securities.
(3) The Default Fund Contribution, Initial Margin, and/or Variation Margin as referred to in section (1) and section (2) shall be submitted by Members in accordance with the request of the CCP.
Article 23
(1) The securities as referred to in Article 22 section (2) point b must be liquid with low credit risk and market risk. (2) The CCP shall determine the valuation and haircut methods for securities as referred to in section (1) by taking market conditions into account. (3) The CCP shall determine concentration limits to limit the market risk of securities as referred to in section (1). (4) The CCP shall carry out periodic evaluations of the valuation and haircut methods as referred to in section (2) and the concentration limit as referred to in section (3).
Part Four
Quality Development of Human Resources
Article 24
(1) The CCP shall be responsible for developing the quality of human resources through improving competency and expertise in the Money Market and Foreign Exchange Market. (2) Increasing competence and expertise as referred to in
section (1) shall be carried out through continuous
education and training.
(3) Continuous education and training as referred to in section (2) shall be carried out by the CCP by involving human resources in developing competency and expertise in technical, non-technical, and leadership fields, in the form of:
a. treasury professional certification in accordance with regulation of Bank Indonesia on strengthening the quality of participants in the Money Market and Foreign Exchange Market; b. competency certification in supporting the implementation of CCP business activities; and
c. improvement of other competencies and skills.
(4) The CCP must administer the implementation of the quality development of human resources. (5) The CCP is required to submit reports on the quality development of human resources to Bank Indonesia.
Article 25
(1) The CCP is required to provide education and training funds from the current years budget.

(2) The amount or nominal value of education and training funds as referred to in section (1) shall be at least 3.5% (three point five percent) of the total gross salary expense realized in the previous year. (3) Fulfillment of the amount or nominal value of education funds as referred to in section (2) shall be carried out not later than 3 (three) years after the CCP carries out business activities.
Part Five
Administrative Sanctions
Article 26
CCP that violates the provisions as referred to in Article 13
section (1), Article 14 section (1), Article 16 section (2), Article
17, Article 19 section (2), Article 19 section (3), Article 20 section (3), Article 24 section (5), and/or Article 25 section (1) shall be subject to administrative sanctions in the form of:
a. written reprimand; b. temporary, partial, or complete suspension of CCP business activities;
c. revocation of CCP business license.
CHAPTER IV
ORGANIZATION OF TRI-PARTY AGENT ACTIVITIES
Part One
Duties and Activities of Tri-Party Agent
Article 27
(1) CCP in carrying out another function as a Tri-Party Agent as referred to in Article 4 has the following duties at minimum:
a. administer and manage collateral from financial transactions of Tri-Party Agent service users; b. manage risks by establishing standard operating procedures related to risk management of Tri-Party Agent activities;
c. carry out monitoring, evaluation, and control (mark￾to-market) of the collateral position of Tri- Party Agent
service users; and d. carry out other duties as determined by Bank Indonesia. (2) Other duties as referred to in section (1) point d shall be published on the Bank Indonesia website and submitted by Bank Indonesia to the CCP through letter.
Article 28

(1) In carrying out another function as a Tri-Party Agent as referred to in Article 4 and the duties of the Tri-Party Agent as referred to in Article 27, CCP as Tri-Party Agent shall carry out the following activities:
a. approve, reject, and terminate the use of Tri -Party Agent services; b. impose sanctions against Tri-Party Agent service users;
c. determine the amount of fees;
d. carry out collateral management from Tri-Party Agent service users; e. determine the valuation method for collateral from Tri-Party Agent service users; and f. carry out other activities as determined by Bank Indonesia. (2) Other activities as referred to in section (1) point f shall be published on the Bank Indonesia website and submitted by Bank Indonesia to the CCP through letter.
Article 29
(1) In the implementation of Tri-Party Agent, the CCP is required to:
a. carry out the functions as referred to in Article 4 and the duties as referred to in Article 27; b. carry out the activities as referred to in Article 28 professionally, objectively, in good faith, and full of responsibility;
c. prepare and enforce rule books for the implementation
of Tri-Party Agent; d. ensure the capability of the Financial Market Infrastructure and/or system used in carrying out its functions as a Tri-Party Agent to meet the principles of safety, effectiveness, efficiency, and reliability; e. ensure the Tri-Party Agent system is connected to the Financial Market Infrastructure and/or system that supports the implementation of the Tri-Party Agent function; f. submit a report on the implementation of Tri-Party Agent to Bank Indonesia; and g. fulfill other obligations determined by Bank Indonesia. (2) Fulfillment of other obligations as referred to in section (1) point g shall be published on the Bank Indonesia website and submitted by Bank Indonesia to the CCP through letter.
Part Two
Tri-Party Agent Rule Books

Article 30
(1) The establishment and implementation of rule books for the organization of Tri-Party Agents as referred to in Article 29 point c conducted with due consideration of the following factors:
a. conformity of functions, duties, and activities of the Tri-Party Agent; b. fulfillment of applicable international principles and/or standards as well as the provisions of laws and regulations relating to the function of the Tri -Party Agent; and
c. fulfillment of the principles of transparency, openness
of information, and accountability.
(2) In establishing the rule books for the organization of the Tri-Party Agent as referred to in section (1), the Tri-Party Agent is required to:
a. conduct consultations with Bank Indonesia before establishing rule books for the organization of the Tri - Party Agent; b. obtain approval from the CCP board of commissioners for rule books for the organization of the Tri-Party Agent; and
c. submit the rule books for the organization of the Tri￾Party Agent to Bank Indonesia not later than 14
(fourteen) Business Days after the rule books apply to Tri-Party Agent service users.
Article 31
The CCP is required to ensure that the rule books for the organization of the Tri-Party Agent as referred to in Article 30 encompasses at minimum:
a. Criteria and requirements to become a Tri-Party Agent service user in an objective, risk-based, and transparent manner, including evaluation of Tri-Party Agent service users; b. the rights and obligations of Tri-Party Agent service users, including the policy of imposing fees on Tri-Party Agent service users;
c. policy on separating the functions of the Tri-Party Agent
from the implementation of CCP business activities and the implementation of other CCP business activities, including, at a minimum collateral management; and d. consumer protection and dispute resolution mechanisms.
Part Three
Administrative Sanctions
Article 32

CCP that violates the provisions as referred to in Article 29
section (1), Article 30 section (2), and/or Article 31 shall be
subject to administrative sanctions in the form of:
a. written reprimand; b. temporary, partial, or complete suspension of Tri -Party Agent activities; and/or
c. revocation of CCP business license.
CHAPTER V
CCP CONNECTIVITY
Part One
CCP Connectivity in Indonesia
Article 33
(1) CCP is required to connected with:
a. Financial Market Infrastructure and/or systems organized by Bank Indonesia; and/or b. other Financial Market Infrastructure and/or systems, as determined by Bank Indonesia. (2) In the event that the CCP is connected to other Financial Market Infrastructure and/or systems as referred to in
section (1) point b, the CCP is required to report the
realization of the connection implementation to Bank Indonesia not later than 10 (ten) Business Days after the connection. (3) The determination by Bank Indonesia as referred to in
section (1) shall be conveyed by Bank Indonesia to the CCP
through letter.
Article 34
(1) CCP is required to first obtain a recommendation from Bank Indonesia to make connections other than with the Financial Market Infrastructure and/or systems as referred to in Article 33 section (1). (2) To obtain the recommendations as referred to in section (1), the CCP shall submit an application accompanied by supporting documents in the form of:
a. a document indicating the form and mechanism of connection that the CCP intends to implement; b. analysis and mitigation of risks arising from the implementation of CCP connections;
c. CCP connection agreement concept; and;
d. other documents and/or information requested by Bank Indonesia. (3) In processing the application as referred to in section (2), Bank Indonesia may conduct an on-site visit to the CCP

and/or Financial Market Infrastructure and/or system that will be connected to the CCP. (4) Bank Indonesia shall provide recommendations or not provide recommendations on the application to make connections submitted by the CCP. (5) In the event that Bank Indonesia provides a recommendation, the CCP is required to submit a report on the implementation of the connection with the Financial Market Infrastructure and/or systems organized by parties other than Bank Indonesia, not later than 10 (ten) Business Days after the date of the connection implementation.
Article 35
(1) The CCP is required to identify, measure, monitor, and manage risks arising from the implementation of connections with Financial Market Infrastructure and/or systems operated by parties other than Bank Indonesia. (2) The CCP is required to ensure that Bank Indonesia may:
a. have access to data and information required as a result of implementing connections with the Financial Market Infrastructure and/or systems organized by parties other than Bank Indonesia; and b. monitor CCP connections to the Financial Market Infrastructure and/or systems operated by parties other than Bank Indonesia.
Part Two
CCP Connectivity with Cross-Border Financial Market Infrastructure
Article 36
(1) CCP may cooperate to connect cross-border Financial Market Infrastructure regulated and supervised by authorities in other jurisdictions. (2) In carrying out cooperation to establish cross-country Financial Market Infrastructure connectivity as referred to in section (1), CCP must undertake, at a minimum, do the following actions:
a. implement rules, procedures, and controls that enable the CCP to identify, monitor, and manage risks arising from cooperation and/or connectivity between Financial Market Infrastructures; b. ensure that records on both Financial Market Infrastructures are correct and accurate; and
c. make a written agreement on cooperation and/or
connectivity which at minimum contains the rights and obligations of each Financial Market Infrastructure including its Members.

(3) CCP that will cooperate to carry out cross-country Financial Market Infrastructure connectivity as referred to in section (1) is required to consult with Bank Indonesia on the cooperation plan to carry out cross- country Financial Market Infrastructure connectivity.
Part Three
Use of Technology Innovation in the Financial Sector
Article 37
(1) CCP may use technological innovation in the financial sector in carrying out business activities as CCP. (2) CCP intending to use technology innovation in the financial sector as referred to in section (1) is required to first consult with the Bank Indonesia regarding its plans to use technology innovation in the financial sector to support CCP business activities.
Part Four
Use of Infrastructure Support Service Providers
Article 38
(1) CCP may use infrastructure support service providers to support the CCP functions. (2) CCP intending to use infrastructure support service providers as referred to in section (1) is required to first consult with Bank Indonesia on plans to use infrastructure support service providers. (3) In the event that the CCP uses an infrastructure support service provider, the CCP is required to ensure:
a. the ability of the infrastructure support service provider to support the CCP functions; b. operational resilience of infrastructure from the supporting service provider; and
c. effective application of the principles of prudence and
risk management of the infrastructure support service provider. (4) CCP is required to ensure that Bank Indonesia may:
a. have access to the data and information required for the infrastructure support service provider as referred to in section (1); and b. monitor the infrastructure support service providers through CCP. (5) Supporting service providers as referred to in section (1) must provide access to the required information to Bank Indonesia and CCP.
Part Five
Administrative Sanctions

Article 39
CCP that violates the provisions as referred to in Article 33
section (1), Article 33 section (2), Article 34 section (1), Article
34 section (5), Article 35, Article 36 section (3), Article 37 section (2), Article 38 section (2), Article 38 section (3), and/or Article 38 section (4) shall be subject to administrative sanctions in the form of:
a. written reprimand; b. temporary, partial, or complete suspension of CCP business activities; and/or
c. revocation of CCP business license.
CHAPTER VI
CCP MEMBERSHIP
Article 40
(1) Members shall consist of:
a. direct Members; and b. indirect Members.
(2) Direct Members as referred to in section (1) point a shall include:
a. general Members; and b. individual Members. (3) CCP is required to identify, monitor, and manage risks arising from direct Members as referred to in section (1) point a and customers who are indirect Members as referred to in section (1) point b (tiered participation arrangements). (4) The implementation of obligations towards customers who are indirect Members as referred to in section (3) may be carried out by the CCP either directly or through general Members. (5) In identifying, monitoring, and managing risks arising from indirect Members as referred to in section(3), the CCP, at a minimum know and request the following information:
a. customer-related basis; and b. posititions of transaction, Initial Margin, and Variation Margin of customers who are Members. (6) CCP that violates the provisions referred to in section (3) shall be subject to administrative sanctions in the form of:
a. written reprimand; b. temporary, partial, or complete suspension of CCP business activities; and/or
c. revocation of CCP business license.
Article 41
(1) General Members as referred to in Article 40 section (2) point a are direct Members who are entitled to clear their

transactions through CCP for their own benefit and/or their customers. (2) General Members as referred to in section (1) must identify, monitor, and manage risks arising from customers who are indirect Members as referred to in Article 40 section (1) point b. (3) General Members as referred to in section (1) shall include:
a. bank; and b. other parties as determined by Bank Indonesia.
Article 42
(1) Individual Members as referred to in Article 40 section (2) point b are direct Members who act only in their own interests. (2) Individual Members as referred to in section (1) shall include:
a. bank; and b. other parties as determined by Bank Indonesia.
Article 43
(1) Indirect Members as referred to in Article 40 section (1) point b are customers of general Members. (2) Customers as referred to in section (1) may be in the form of:
a. banks; b. financial services institutions other than banks
c. corporations; and
d. other parties to the extent not contrary to the provisions of laws and regulations.
CHAPTER VII
QUALIFYING CCP
Article 44
(1) Bank Indonesia has the authority to:
a. determine the status of Qualifying CCP; and b. carry out monitoring, evaluation, and revocation of Qualifying CCP status. (2) In determining, monitoring, evaluating, and revoking Qualifying CCP status, Bank Indonesia shall take compliance with applicable international principles and/or standards as referred to in Article 6 section (2) into account. (3) In addition to the considerations as referred to in section (2), Bank Indonesia may also consider:
a. results of Bank Indonesia’s supervision and/or evaluation; and b. information and/or data and recommendations from other relevant authorities and/or self- regulatory

organizations in the Money Market and Foreign Exchange Market sectors, related to the organization of CCP business activities.
Article 45
(1) To obtain the Qualifying CCP status, the CCP shall submit an application for determination of the Qualifying CCP status to Bank Indonesia. (2) Submission of the application as referred to in section (1) shall be accompanied by supporting documents in the form of:
a. self-assessment document on compliance with applicable international principles and/or standards as referred to in Article 44 section (2); and b. CCP readiness document to provide the data required by Members to fulfill their obligations under the provisions of laws and regulations.
Article 46
(1) Based on the application for determination submitted by the CCP as referred to in Article 45 section(1), Bank Indonesia shall carry out an assessment on the determination of the Qualifying CCP status. (2) In carrying out the assessment as referred to in section (1), Bank Indonesia may:
a. request additional data and/or information; b. confirm self-assessment as referred to in Article 45
section (2) point a to CCP; and/or
c. conduct on-site visits toward the organization of CCP
business activities.
Article 47
(1) Bank Indonesia shall provide approval or rejection of the application for determination of the Qualifying CCP status. (2) CCP that has obtained the Qualifying CCP status as referred to in section (1) must exert efforts to maintain the Qualifying CCP status.
CHAPTER VIII
LICENSING
Part One
General
Article 48
(1) Parties intending to to carry out business activities as CCP are required to obtain a business license from Bank Indonesia.

(2) Application for a business license as referred to in section (1) submitted to the licensing front office and implemented in accordance with the provisions of Bank Indonesia on integrated licensing by Bank Indonesia through the licensing front office. (3) To obtain a CCP business license, the party that will carry out business activities as CCP must first obtain principal approval from Bank Indonesia.
Part Two
Principal Approval
Paragraph 1
Application Documents for Principal Approval
Article 49
(1) The party submitting an application for principal approval as a CCP submit an application letter to Bank Indonesia which is submitted by a minimum 1 (one) member of the board of directors. (2) An example of an application letter for principal approval as CCP is listed in the Annex which constitutes an integral
part of this Regulation of Member of Board of Governors.
Article 50
The application letter for principal approval as referred to in
Article 49 section (1) shall be accompanied by supporting
documents in the form of:
a. a copy of the deed of establishment which has been enacted by the authorized agency, including the latest amendment which has received approval from the authorized agency or a letter of receipt of notification of amendment to the articles of association that has been issued from the authorized agency, which contains the articles of association and other information relating to the establishment of the company; b. a statement letter from one of the members of the board of directors containing information that the shareholder has made a capital deposit of at minimum Rp200,000,000,000.00 (two hundred billion rupiah);
c. share ownership data in the form of:

1. share ownership structure and details; and
2. shareholder status, namely Indonesian citizens,
   Indonesian legal entities, foreign citizens, and/or foreign legal entities; d. list of the members of the board of commissioners showing that there is at minimum 1 (one) independent commissioner;

e. list of the members of the board of directors showing that there is at minimum 1 (one) prospective director in charge of CCP; f. organizational structure and human resource fulfillment plan; g. business plan for the first 3 (three) years; h. long-term corporate strategic plan;
i. guideline concept for:

1. implementation of governance;
2. risk management;
3. internal control system; and
4. information technology system plan used; and
   j. standard operating procedures.
   Paragraph 2
   Processing of Principal Approval
   Article 51
   (1) Bank Indonesia shall conduct research on the application and supporting documents as referred to in Article 50. (2) The research as referred to in section (1) shall include research into administrative completeness and truth as well as research into the substantive truth. (3) In the event that the research finds that the administrative completeness and truth are complete and correct, Bank Indonesia will conductresearch into the substantive truth. (4) In the event that based on research into the substantive truth research as referred to in section (3) there are documents which are not in accordance with substance, Bank Indonesia shall provide notification to the party submitting the application to complete and/or correct the supporting documents. (5) The party submitting the application must complete and/or correct the supporting documents and submit them to Bank Indonesia not later than 30 (thirty) Business Days from the date o notification as referred to in section (4). (6) In the event that the time period as referred to in section (5) elapse:
   a. supporting documents are not submitted; or b. supporting documents have been submitted but are incomplete and/or not appropriate, the party submitting the application is deemed to have withdrawn the application to secure principal approval as CCP.
   Article 52
   Bank Indonesia may request the party submitting the application as referred to in Article 49 section (1) to deliver a presentation on the overall CCP implementation plan.

Article 53
(1) Bank Indonesia shall provide approval or rejection of the application for principal approval as referred to in Article 49 section (1) by considering at least:
a. the results of research into the substantive truth as referred to in Article 51 section (3); and b. confirmation results and/or information from other relevant authorities and/or self-regulatory organizations in the Money Market and Foreign Exchange Market sectors, if required. (2) Approval or rejection of the application for principal approval referred to in section (1) shall be given not later than 90 (ninety) Business Days after the supporting documents submitted are substantially appropriate.
Article 54
(1) A party that has obtained principal approval as a CCP as referred to in Article 53 section (1) must submit an application for a business license as a CCP to Bank Indonesia not later than 2 (two) years from the date the letter of principal approval as a CCP is issued by Bank Indonesia. (2) In the event of after the time period as referred to in section (1) the party that has received principal approval as a CCP has not submitted an application for a business license as a CCP, the principal approval as a CCP as referred to in
Article 53 section (1) shall be declared invalid.
Part Three
CCP Business License
Paragraph 1
Application Documents for CCP Business License
Article 55
(1) The party submitting an application for a business license as a CCP submit an application letter to Bank Indonesia, submitted by at minimum 1 (one) member of the board of directors. (2) An example of the application letter for a business license as a CCP is listed in Annex which constitutes an integral
part of this Regulation of Member of Board of Governors .
Article 56
The application letter for a business license as referred to in
Article 55 section (1) shall be accompanied by the following
supporting document requirements:

a. a copy of the principal approval letter as a CCP that is still valid; b. proof of fulfillment of the minimum equity requirements of Rp400,000,000,000.00 (four hundred billion rupiah) in the form of:

1. latest financial statement; and/or
2. proof of capital deposit into the CCP account;
   c. draft CCP rule books;
   d. evidence of operational readiness, including at a minimum:
3. organizational structure and human resources
   readiness documents;
4. document containing the results of user acceptance
   tests on the system to be used;
5. business continuity management readiness and
   disaster recovery plan documents; and
6. standard operating procedure documents;
   e. copy of the deed of establishment that has been legalized or has obtained approval from the authorized agency along with the latest amendment or a letter of receipt of notification of the amendment to the articles of association that has been issued from the authorized agency, containing the articles of association and other information relating to the establishment of the company which shall include:
7. the requirement that the appointment of the
   independent commissioner and director in charge of CCP must first obtain approval from Bank Indonesia; and
8. organizational structure containing the composition of
   the board of commissioners and the board of directors of at minimum 1 (one) independent commissioner and 1 (one) director in charge of CCP; f. list of members of the board of commissioners and the board of directors; g. data on the independent commissioner and director in charge of CCP, supplemented with:
9. copy of identification in the form of a resident identity
   card or passport;
10. curriculum vitae signed by the person concerned;
11. a copy of a diploma at least equivalent to a bachelor’s
    degree specifically for the director in charge of CCP; and
12. statements stating that the person concerned:
    a) has never been convicted of criminal act in accordance with the requirements for the independent commissioner and director in charge of CCP as determined by Bank Indonesia; b) has committed to developing CCP; c) has committed to implementing duties and obligations to carry out business activities in

accordance with the provisions of laws and regulations and support Bank Indonesia policies in developing domestic Money Markets and Foreign Exchange Markets; d) has no bad credit or financing; e) has never been declared bankrupt and/or never been a shareholder, controller of a company that is not a shareholder, member of the board of directors, or member of the board of commissioners who is found guilty of causing a company to be declared bankrupt within the last 5 (five) years before being nominated; and f) has no financial, management, share ownership, and/or family relationships with other members of the board of commissioners, board of directors, and/or controlling shareholders, or other relationships that may affect the ability to act independently, specifically for the independent commissioner, as in the example in Annex which constitutes an integral
part of this Regulation of Member of Board of Governors;
h. share ownership data in the form of:

1. share ownership structure and details; and
2. shareholder status, namely Indonesian citizens,
   Indonesian legal entities, foreign citizens, and/or foreign legal entities, in the event of any changes; and
   i. a statement letter from one of the members of the board of
   directors stating that the source of funds used to fulfill the capital does not come from loans or financing facilities in any form and/or from and for the purpose of money laundering, as in the example in Annex which constitutes an integral part of this Regulation of Member of Board of Governors. Paragraph 2 CCP Business License Processing
   Article 57
   (1) Bank Indonesia shall conduct research on the application and supporting documents as referred to in Article 56. (2) The research as referred to in section (1) shall include research into administrative completeness and truth as well as research into substantive truth. (3) In the event that the research shows that the administrative completeness and truth are complete and correct, Bank Indonesia shall conduct research into the substantive truth.

(4) In the event that based on research into the substantive truth as referred to in section (3) there are documents which are not in accordance with substance, Bank Indonesia shall provide notification to the party submitting the application to complete and/or correct the supporting documents. (5) The party submitting the application must complete and/or correct the supporting documents and submit them to Bank Indonesia not later than 30 (thirty) Business Days from the date of notification as referred to in section (4). (6) In the event that the time period as referred to in section elapse(5):
a. supporting documents are not submitted; or b. supporting documents have been submitted but are incomplete and/or not appropriate, the party submitting the application is deemed to have withdrawn the application to obtain a business license as a CCP.
Article 58
In assessing the fulfillment of the requirements for the independent commissioner and director in charge of CCP, Bank Indonesia shall conduct a face-to-face fit and proper test.
Article 59
Bank Indonesia may conduct on-site visits to prospective CCP locations to ensure operational readiness.
Article 60
(1) Bank Indonesia shall provide approval or rejection of the application for a business license as referred to in Article 55 section (1) by considering at least:
a. the results of reserach into the substantive truth as referred to in Article 57 section (3); b. the results of the fit and proper test to ensure fulfillment of the requirements for:

1. the independent commissioner; and
2. the director in charge of CCP; and
   c. confirmation results and/or information from other
   relevant authorities and/or self-regulatory organizations in the Money Market and Foreign Exchange Market sectors, if if required. (2) Approval or rejection of the application for a business license as referred to in section (1) shall be given not later than 90 (ninety) Business Days after the supporting documents submitted are substantially appropriate.
   Article 61

(1) Parties that have obtained a business license as a CCP as referred to in Article 60 section (1) are required to carry out business activities not later than 60 (sixty) Business Days from the date the CCP system is connected to the Financial Market Infrastructure organized by Bank Indonesia. (2) The implementation of CCP business activities is required to be reported by the CCP to Bank Indonesia not later than 10 (ten) Business Days from the date of implementation of the business activities. (3) In the event of after the period as referred to in section (1) the CCP has not carried out business activities, the business license issued by Bank Indonesia is declared null and void.
Part Four
Independent Commissioner and Director in charge of CCP Paragraph 1 General
Article 62
(1) CCP is required to have at minimum:
a. 1 (one) independent commissioner; and b. 1 (one) director in charge of CCP. (2) CCP is required to obtain Bank Indonesia’s approval before appointing the independent commissioner and director in charge of CCP. (3) The director in charge of CCP may concurrently hold other positions with the approval of Bank Indonesia. (4) Bank Indonesia’s approval as referred to in section (3) shall be given by taking the size and complexity of the CCP business activities into account. (5) The independent commissioner and director in charge of CCP must meet the following requirements at minimum:
a. integrity aspect; b. competency aspect; and
c. financial aspect.
Paragraph 2
Requirements for the Independent Commissioner and Director in Charge of CCP
Article 63
(1) Integrity requirements for the independent commissioner and director in charge of CCP shall include:
a. have good integrity, which includes, at a minimum demonstrated by compliance with applicable provisions, including never having been convicted of committing the following crimes:

1. criminal act in the financial sector;
2. criminal act listed in the Criminal Code (KUHP)
   and/or similar Criminal Codes (KUHP) abroad with a threat of imprisonment for a term of 1 (one) year or more, within the last 10 (ten) years; and/or
3. other criminal act with a threat of imprisonment
   for a term of 1 (one) year or more, such as corruption, money laundering, narcotics or psychotropics, smuggling, customs, excise, human trafficking, illegal arms trade, terrorism, counterfeiting, in the taxation sector, in the forestry sector, in the environment sector, in the maritime affairs and fisheries sector, within the last 20 (twenty) years, before being nominated; b. have a commitment to comply with the provisions of laws and regulations and support Bank Indonesia policies;
   c. have a commitment to the development of domestic
   financial markets; and d. not listed in the failed list. (2) Competency requirements for the director in charge of CCP shall at minimum include knowledge and/or experience that supports CCP management. (3) Financial aspect requirements for the independent commissioner and director in charge of CCP are, at a minimum, the following and shall be proven by:
   a. having no bad debts and/or bad financing; and b. never been declared bankrupt and/or never been a shareholder, controller of a company that is not a shareholder, member of the board of directors, or member of the board of commissioners found guilty of causing a company to be declared bankrupt within the last 5 (five) years before being nominated. Paragraph 3 Changes to the Independent Commissioner and/or Director in Charge of CCP
   Article 64
   (1) CCP intending to make a change to the independent commissioner and/or director in charge of CCP is required to first obtain approval from Bank Indonesia. (2) The change to the independent commissioner and/or director in charge of CCP shall include if the change occurs as a result of corporate action.

(3) CCP shall submit an application letter to Bank Indonesia submitted by at least 1 (one) member of the board of directors. (4) The application letter for the change to the independent commissioner and/or director in charge of CCP as referred to in section (3) shall be accompanied by the requirements in the form of supporting documents as referred to in
Article 56 point g.
(5) Example of the application letter for the change to the independent commissioner and/or director in charge of CCP is as stated in Annex which constitutes an integral
part of this Regulation of Member of Board of Governors.
Article 65
(1) Bank Indonesia shall conduct research on the application and supporting documents as referred to in Article 64
section (4).
(2) The research as referred to in section (1) shall include research into administrative completeness and truth as well as research into substantive truth. (3) In the event that the research finds that the administrative completeness and truth are complete and correct, Bank Indonesia shall conduct research into the substantive truth. (4) In the event that based on research into the substantive truth as referred to in section (3) there are documents which are not in accordance in substance, Bank Indonesia shall provide notification to the CCP to complete and/or correct the supporting documents. (5) The CCP must complete and/or correct supporting documents and submit them to Bank Indonesia not later than 30 (thirty) Business Days from the date of notification as referred to in section (4). (6) In the event that the time period referred to in section (5) elapse:
a. supporting documents are not submitted; or b. supporting documents have been submitted but are incomplete and/or not appropriate, the CCP is deemed to have cancelled the application for the change to the independent commissioner and/or director in charge of CCP.
Article 66
(1) Bank Indonesia shall provide approval or rejection of the application for the change to the independent commissioner and/or director in charge of CCP as referred to in Article 64 section (3) by taking at least the following into account:

a. the results of research into the substantive truth as referred to in Article 65 section (3); b. the results of the fit and proper test to ensure fulfillment of the requirements for the independent commissioner and/or director in charge of CCP; and
c. confirmation results and/or information from other
relevant authorities and/or self-regulatory organizations in the Money Market and Foreign Exchange Market sectors, if required. (2) In assessing the fulfillment of the requirements for the independent commissioner and director in charge of CCP, Bank Indonesia shall conduct a face-to-face fit and proper test. (3) Approval or rejection of the application for the change to the independent commissioner and/or director in charge of CCP as referred to in section (1) shall be given not later than 60 (sixty) Business Days after the supporting documents submitted are substantially appropriate.
Article 67
The independent commissioner and/or director in charge of CCP may not carry out actions, duties, and functions as an independent commissioner and/or a director in charge of CCP before obtaining approval from Bank Indonesia.
Part Five
Minimum Equity Maintenance
Article 68
(1) CCP is required to maintain minimum equity of at minimum Rp400,000,000,000.00 (four hundred billion rupiah). (2) The components of equity as referred to in section (1) shall include:
a. paid-up capital; b. profit (loss) balance; and
c. other capital components.
(3) The equity components as referred to in section (2) shall be listed in the quarterly financial statement and/or the audited annual financial statement.
Article 69
(1) CCP with equity below the minimum equity is required to meet the minimum equity shortage not later than 1 (one) year since the time on which the equity declined below the minimum threshold. (2) CCP with equity below the minimum threshold as referred to in section (1) is required to submit the following documentation to Bank Indonesia:

a. current financial condition statement; b. minimum equity fulfillment action plan which shall at least contain:

1. mechanisms and stages of fulfilling minimum
   equity;
2. sources of funds for equity fulfillment; and
3. other matters that need to be informed to Bank
   Indonesia.
   (3) The current financial condition statement as referred to in
   section (2) point a must be submitted to Bank Indonesia on
   the last Business Day of the following month after the decline in equity below the minimum equity. (4) The action plan for fulfilling the minimum equity as referred to in section (2) point b shall be submitted to Bank Indonesia not later than 3 (three) months after the decrease in equity below the minimum required threshold. (5) The action plan for fulfilling minimum equity as referred to in section (2) point b must be measurable and can be accounted for by the CCP.
   Article 70
   (1) Bank Indonesia shall carry out an assessment of the action plan for fulfilling minimum equity submitted by the CCP as referred to in Article 69 section (2) point b. (2) In the event that based on Bank Indonesia’s research as referred to in section (1) the action plan for fulfilling minimum equity is deemed incomplete and/or inappropriate, Bank Indonesia shall provide written notification to the CCP to complete and/or improve the action plan for fulfilling minimum equity. (3) The CCP must complete and/or improve the minimum equity fulfillment action plan as referred to in section (2) and submit it to Bank Indonesia not later than 30 (thirty) Business Days from the date of written notification from Bank Indonesia. (4) Bank Indonesia shall provide approval or rejection of the minimum equity fulfillment action plan through letter not later than 30 (thirty) Business Days after the minimum equity fulfillment action plan has been submitted completely and/or appropriately.
   Part Six
   Corporate Action
   Article 71
   (1) In the event that the CCP will undertake a corporate action in the form of a merger, consolidation, spin-off, and/or takeover of the CCP, the CCP is required to obtain approval from Bank Indonesia.

(2) CCP that carries out the corporate action as referred to in
section (1) shall submit an application letter for corporate
action to Bank Indonesia which is submitted by at minimum 1 (one) member of the board of directors. (3) The application letter for corporate action as referred to in
section (2) shall be accompanied by supporting documents
in the form of:
a. background and scheme of the corporate action plan; b. corporate action time target;
c. share ownership data in the form of:

1. share ownership structure and details; and

2. the status of shareholders, namely Indonesian
   citizens, Indonesian legal entities, foreign citizens, and/or foreign legal entities, in the event of a change in share ownership due to corporate action; and d. business plan for the implementation of CCP after corporate action. (4) Example of the application letter for CCP corporate action is as stated in Annex which constitutes an integral part of this Regulation of Member of Board of Governors.
   Article 72
   The corporate action by CCP shall be carried out under the following conditions:
   a. for merger:

3. In the event that the CCP is not the result of a merger,
   the CCP shall submit an application letter for revocation of the business license as a CCP; or

4. In the event that the CCP is the result of a merger
   (surviving company), the CCP may continue to carry out business activities without re-applying for a business license; b. for consolidation:

5. the consolidated CCP shall submit an application to
   Bank Indonesia to revoke its business license as a CCP; and

6. the legal entity resulting from the consolidation shall
   submit an application for a business license as a CCP to Bank Indonesia if it will carry out business activities as a CCP;
   c. for takeover, the CCP that is taken over may continue to
   carry out business activities as a CCP without reapplying for a business license; or d. for spin-off:

7. in the event that the CCP carries out a pure spin-off, the
   CCP shall submit an application to Bank Indonesia to revoke its business license as a CCP;

8. in the event that the CCP carries out an impure spin-off,
   the CCP may continue to carry out business activities as a CCP without re-applying for a business license; and

9. the company resulting from the spin-off is required to
   first obtain a license from Bank Indonesia if it will carry out business activities as a CCP.
   Article 73
   (1) Bank Indonesia shall conduct research on the application and supporting documents as referred to in Article 71
   section (3).
   (2) The research as referred to in section (1) shall include research into administrative completeness and truth as well as research into substantive truth. (3) In the event that the research finds that the administrative completeness and truth are complete and correct, Bank Indonesia shall conduct research into substantive truth. (4) In the event that based on research into the substantive truth as referred to in section (3) there are documents which are not in accordance with substance, Bank Indonesia shall provide notification to the CCP to complete and/or correct the supporting documents. (5) The CCP must complete and/or correct supporting documents and submit them to Bank not later than 30 (thirty) Business Days from the date of notification as referred to in section (4). (6) In the event that the time period referred to in section (5) elapse:
   a. supporting documents are not submitted; or b. supporting documents have been submitted but are incomplete and/or not appropriate, the CCP is deemed to have withdrawn its application for approval of the corporate action.
   Article 74
   (1) Bank Indonesia shall provide approval or rejection of the application for corporate action by considering at least:
   a. research as referred to in Article 73 section (3); and b. confirmation results and/or information from other relevant authorities and/or self-regulatory organizations in the Money Market and Foreign Exchange Market sectors, if required. (2) Approval or rejection of the application for corporate action as referred to in section (1) shall be given not later than 60 (sixty) Business Days after the supporting documents submitted are substantially appropriate. (3) CCP must begin taking steps to implement the corporate action not later than 60 (sixty) Business Days from the date

of approval of the corporate action issued by Bank Indonesia. (4) If after the period as referred to in section (3) the CCP has not taken steps to implement the corporate action, the corporate action approval is declared invalid.
Part Seven
Prohibition on Conducting Other Business Activities, Composition of Share Ownership, and Prohibition on Controlling Shareholders Paragraph 1 Prohibition on Conducting Other Business Activities
Article 75
(1) CCP is prohibited from carrying out business activities other than CCP business activities based on a business license from Bank Indonesia. (2) The prohibition as referred to in section (1) shall be exempted if the CCP carries out other business activities that are still related to the business license issued by Bank Indonesia. (3) In the event that the CCP carries out other business activities as referred to in section (2), the CCP is required to:
a. separate the Default Fund Contribution, Initial Margin, and Variation Margin received from financial transactions as referred to in Article 5 from other business activities; and b. separate the mechanism for the sequence of use of funding sources (default waterfall) for financial transactions as referred to in Article 5 with other business activities. Paragraph 2 Share Ownership Composition
Article 76
(1) CCP is required to comply with provisions on the composition of share ownership, with the following provisions:
a. fully owned by Indonesian citizens and/or Indonesian legal entities; or b. owned by Indonesian citizens and/or Indonesian legal entities with foreign citizens and/or foreign legal entities, with the limit of ownership of foreign citizens and/or foreign legal entities being a maximum of 49% (forty-nine percent) of the paid-up capital.

(2) Calculation of ownership of foreign citizens and/or foreign legal entities as referred to in section (1) point b shall include direct and indirect ownership in accordance with Bank Indonesia’s assessment. Paragraph 3 Prohibition on Controlling Shareholders
Article 77
(1) CCP controlling shareholders are prohibited from being controlling shareholders in more than 1 (one) CCP. (2) CCP is required to ensure compliance with the provisions as referred to in section (1).
Part Eight
Administrative Sanctions
Article 78
(1) CCP that violates the provisions as referred to in Article 61
section (2), Article 62 section (1), Article 62 section (2),
Article 64 section (1), Article 68 section (1), Article 69
section (1), Article 69 section (2), Article 71 section (1),
Article 75 section (1), Article 75 section (3), Article 76
section (1), and/or Article 77 section (2) shall be subject to
administrative sanctions in the form of:
a. written reprimand; b. temporary, partial, or complete suspension of CCP business activities; and/or
c. revocation of CCP business license.
(2) Parties carrying out business activities as CCP that violate the provisions as referred to in Article 48 section (1) and
Article 72 point d number 3 shall be subject to
administrative sanctions in the form of:
a. written reprimand; b. temporary, partial, or complete suspension of activities in the Money Market and/or Foreign Exchange Market; and/or
c. revocation of license and/or determination.
(3) Controlling shareholders who violate the provisions as referred to in Article 77 section (1) shall be subject to administrative sanctions in the form of a written reprimand. (4) The imposition of administrative sanctions as referred to in
section (3) shall not eliminate the obligation of the
controlling shareholder not to be a controlling shareholder in more than 1 (one) CCP.
CHAPTER IX

GRANTING OF RECOMMENDATIONS AND IMPLEMENTATION OF CONSULTATIONS
Part One
General
Article 79
(1) Bank Indonesia shall grant recommendations and/or carry out consultations on the implementation of CCP business activities. (2) The granting of recommendations and/or implementation of consultations as referred to in section(1) may be carried out based on an application from the CCP. (3) Bank Indonesia may request supporting documents related to the granting of recommendations and/or implementation of consultations as referred to in section (2) to be submitted through the Bank Indonesia licensing application.
Part Two
Granting of Recommendations
Article 80
(1) CCP shall submit an application for recommendations to Bank Indonesia related to the organization of CCP business activities. (2) The application for recommendations as referred to in
section (1) shall be accompanied by supporting documents
in the form of:
a. business plan related to the development of CCP to be carried out; and b. other documents determined by Bank Indonesia.
Article 81
(1) Based on the application submitted by the CCP as referred to in Article 80 section (1), Bank Indonesia shall assess the application for recommendations. (2) In carrying out the assessment as referred to in section (1), Bank Indonesia may:
a. request additional data and/or information; b. confirm supporting documents submitted by the CCP; and/or
c. conduct on-site visits.
(3) Bank Indonesia shall provide recommendations or not provide recommendations on the organization of CCP business activities.
Part Three

Granting of Recommendations for the Organization of Tri-Party Agent Activities
Article 82
In order to obtain recommendations from Bank Indonesia as referred to in Article 4 section (2), CCP shall submit an application for an additional function as a Tri -Party Agent equipped with supporting documents in the form of:
a. CCP's first 3 (three) year business plan as a Tri-Party Agent; b. draft rule books for the organization of the Tri-Party Agent;
c. standard operating procedures for the organization of the
Tri-Party Agent; and d. other documents determined by Bank Indonesia.
Article 83
(1) Based on the application submitted by the CCP as referred to in Article 82 section (1), Bank Indonesia shall assess the application for the additional function as a Tri-Party Agent. (2) In carrying out the assessment as referred to in section (1), Bank Indonesia may:
a. request additional data and/or information; b. confirm supporting documents delivered by the CCP; and/or
c. conduct on-site visits for the additional function as a
Tri-Party Agent.
(3) Bank Indonesia shall provide recommendations or not provide recommendations for the CCP to perform the function as a Tri-Party Agent.
Part Four
Implementation of Consultations
Article 84
(1) The CCP shall submit an application for consultation to Bank Indonesia on the implementation of CCP business activities. (2) The application for consultation as referred to in section (1) shall be accompanied by supporting documents in accordance with the consultation topic proposed to Bank Indonesia.
Article 85
(1) Bank Indonesia shall conduct consultation on the implementation of CCP business activities in accordance with the application for consultation submitted by CCP to Bank Indonesia. (2) In implementing the consultation as referred to in section (1), Bank Indonesia may:
a. request additional data and/or information;

b. confirm supporting documents submitted by the CCP; and/or
c. conduct on-site visits.
Article 86
(1) The consultation results as referred to in Article 85 may be in the form of:
a. letter of delivery of the consultation results; or b. minutes of the consultation results. (2) The CCP shall submit a follow-up report on the implementation of the consultation results to Bank Indonesia.
CHAPTER X
DATA AND INFORMATION
Part One
General
Article 87
(1) CCP is required to provide data, information, reports, statements, and/or explanations related to its business activities to Bank Indonesia. (2) Data, information, reports, statements, and/or explanations as referred to in section (1) shall be submitted to Bank Indonesia through:
a. survey; b. reporting; or
c. other methods determined by Bank Indonesia.
(3) CCP is required to comply with the principles of transparency of data and information on the implementation of CCP in a complete and transparent manner to Members. (4) Fulfillment of the obligations as referred to in section (3) must take the provisions of laws and regulations into account. (5) Other methods determined by Bank Indonesia shall be conveyed by Bank Indonesia to CCP through letter, Bank Indonesia website, and/or other media determined by Bank Indonesia.
Part Two
CCP Report
Article 88
(1) The reports as in Article 87 section (2) point b shall include:
a. periodic reports; and b. incidental reports.

(2) The periodic reports as referred to in section (1) point a shall include:
a. CCP daily operational report; b. CCP monthly operational report;
c. daily transaction report;
d. report on the stress test results in accordance with the reporting period determined by Bank Indonesia; e. quarterly financial statement; f. audited annual financial statements; g. report on the results of the annual general meeting of shareholders (GMS); h. annual report on the implementation of human resource quality development;
i. annual evaluation report on compliance with
applicable international principles and/or standards; j. annual report on the implementation of governance and application of risk management; and k. other reports determined by Bank Indonesia. (3) The incidental reports as referred to in section (1) point b shall include:
a. report on an event of default of a Member; b. report on the results of the extraordinary general meeting of shareholders (RUPS);
c. report on CCP membership change;
d. report on the imposition of sanctions by CCP against Members; e. reports on special events, including:

1. events and/or conditions that cause CCP to no
   longer meet the criteria and/or requirements as a CCP;
2. an agreement to exchange data, information,
   reports, statements, and/or explanations that has been agreed upon between the CCP and other parties;
3. an obligation to submit data, information, reports,
   statements, and/or explanations to other relevant authorities within and/or outside the country;
4. indications of market manipulation by Members;
5. a dispute between the CCP and Members and/or
   other parties;
6. the imposition of sanctions by other relevant
   authorities at home and/or abroad;
7. an incident that has the potential to affect the
   smooth operation of the CCP;
8. a temporary suspension of activities as CCP;
9. rating downgrade; and
10. decrease in equity below minimum equity in the
    form of a current financial condition statement;

f. report on the opening of additional services or services to Members that have received approval from the relevant authorities; and g. other reports determined by Bank Indonesia. (4) Other reports as referred to in section (3) point k and
section (4) point g shall be conveyed by Bank Indonesia to
the CCP through letter, the Bank Indonesia website, and/or other media determined by Bank Indonesia.
Article 89
(1) The CCP daily operational report as referred to in Article 88
section (2) point a shall be submitted daily with a deadline
of 23.59 WIB on the Business Day of the report date. (2) The CCP monthly operational report as referred to in Article 88 section (2) point b shall be submitted every month not later than 10 (ten) Business Days after the end of the reporting month. (3) The daily transaction report as referred to in Article 88
section (2) point c shall be submitted daily with a deadline
of 23.59 WIB on the Business Day of the report date. (4) The report on the stress test results as referred to in Article 88 section (2) point d shall be submitted to Bank Indonesia in accordance with the reporting period determined by Bank Indonesia. (5) The quarterly financial statement as referred to in Article 88 section (2) point e shall be submitted not later than the last Business Day of the following month after the end of the quarterly reporting period. (6) The audited annual financial statement as referred to in
Article 88 section (2) point f shall be submitted not later
than the last Business Day in April of the following year. (7) The report on the results of the annual general meeting of shareholders (RUPS) as referred to in Article 88 section (2) point g shall be submitted to Bank Indonesia not later than 10 (ten) Business Days after the general meeting of shareholders (GMS) is held. (8) The annual report on the implementation of human resource quality development as referred to in Article88
section (2) point h shall be submitted to Bank Indonesia
not later than the last Business Day in April of the following year. (9) The annual evaluation report on compliance with applicable international principles and/or standards as referred to in Article 88 section (2) point i shall be submitted to Bank Indonesia not later than the last Business Day in February of the following year. (10) The annual report on the implementation of governance and application of risk management as referred to in Article 88 section (2) point j shall be submitted to Bank Indonesia

not later than the last Business Day in July of the following year. (11) Other reports determined by Bank Indonesia as referred to in Article 88 section (2) point k shall be submitted to Bank Indonesia in accordance with the time period determined by Bank Indonesia.
Article 90
(1) The incidental reports as referred to in Article 88 section (3) shall be submitted to Bank Indonesia not later than 5 (five) Business Days after the incident. (2) The time period for submitting the incidental report as referred to in section (1) shall be excluded for submitting a report on the special event in the form of a decrease in equity below the minimum equity as referred to in Article 88 section (3) point e number 10. (3) The report on a decrease in equity below the minimum equity as referred to in section (2) shall be submitted to Bank Indonesia not later than 10 (ten) Business Days in the following month after the decrease in equity occurs. (4) Submission of a report on an event of default by a Member as referred to in Article 88 section (3) point a shall be preceded by submission of information on the event of default on the Business Day of the incident.
Article 91
(1) CCP shall submit the reports as referred to in Article 87
section (2) point b to Bank Indonesia online through the
Bank Indonesia reporting system.
(2) The online submission of reports through the Bank Indonesia reporting system as referred to in section (1) shall be submitted by the CCP with reference to the guidelines for submitting reports online through the Bank Indonesia reporting system. (3) Guidelines for submitting reports online through the Bank Indonesia reporting system as referred to in section (2) shall be conveyed by Bank Indonesia to the CCP through letter and/or other media determined by Bank Indonesia. (4) In the event that the Bank Indonesia reporting system as referred to in section (2) is not available yet, the reports as referred to in section (1) shall be submitted offline.
Article 92
Bank Indonesia may determined different time limits for the submission of reports as referred to in Article 89 and Article 90 with certain considerations.
Part Three
Administrative Sanctions

Article 93
(1) CCP that violates the provisions as referred to in Article 87
section (1) and/or Article 87 section (3) shall be subject to
administrative sanctions in the form of:
a. written reprimand; b. temporary, partial, or complete suspension of CCP business activities; and/or
c. revocation of CCP business license.
(2) The imposition of administrative sanctions as referred to in
section (1) shall not eliminate the CCP's obligation to
submit data, information, reports, statements, and/or explanations related to its business activities to Bank Indonesia.
CHAPTER XI
IMPLEMENTATION OF THE PRINCIPLES OF PRUDENCE, RISK MANAGEMENT, AND GOVERNANCE
Part One
Implementation of the Principle of Prudence and Risk Management
Article 94
(1) CCP is required to effectively apply the principles of prudence and risk management. (2) In implementing effective risk management, the CCP as referred to in section (1) shall have at least:
a. adequate risk management framework; b. business continuity planning;
c. disaster recovery plan;
d. information security that meets the principles of confidentiality, integrity, and availability; e. information technology-related risk management; and f. framework and procedures for the use of risk management models and methodologies. (3) The implementation of risk management as referred to in
section (1) shall be carried out for risks faced by CCP in the
form of:
a. legal risk; b. credit risk;
c. liquidity risk;
d. business risk; e. custody risk; f. investment risk; g. operational risk; and h. other risks that CCP may face. (4) The CCP is required to submit a report on the implementation of risk management to Bank Indonesia.

Article 95
(1) The adequate risk management framework as referred to in
Article 94 section (2) point a shall at least include:
a. risk management policies, procedures, and systems that can identify, measure, monitor, and manage the various risks arising and borne by the CCP; and b. business continuity management and disaster recovery plans. (2) The risk management framework as referred to in section (1) shall be published transparently on the official CCP website. (3) The CCP shall conduct an evaluation of the risk management framework as referred to in section (1) at minimum once every 1 (one) year.
Article 96
(1) The framework and procedures for the use of risk management models and methodologies as referred to in
Article 94 section (2) point f shall be used at least for credit
risk, liquidity risk, business risk, and operational risk. (2) The risk management model and methodology as referred to in section (1) must be:
a. validated by CCP and independent parties qualified in their fields; b. tested through endurance tests including stress testing and back testing; and
c. evaluated periodically.
Article 97
(1) The CCP shall implement effective credit risk management through a credit risk management framework that at least consists of:
a. Member requirements; b. trading limits; and
c. Initial Margins and Variation Margins.
(2) The implementation of credit risk management as referred to in section (1) shall be carried out at least by:
a. identifying, measuring, monitoring, and managing credit risk; b. having adequate procedures and mechanisms for the sequence of use of funding sources (default waterfall) if a Member experiences an event of default;
c. allocating CCP capital of at minimum
Rp100,000,000,000.00 (one hundred billion rupiah) as part of the sequence of use of funding sources (default waterfall); d. maintaining sufficient financial resources to meet liquidity needs for credit exposures to Members;

e. requesting Initial Margin and Variation Margin in the form of funds and/or high-quality securities from Members; f. applying valuation and haircut methods to Initial Margin and Variation Margin in the form of securities based on the principle of prudence; g. applying concentration limit to Initial Margin and Variation Margin in the form of securities; and h. implementing an effective Initial Margin and Variation Margin system. (3) In determining adequate procedures and mechanisms for the sequence of use of funding sources (default waterfall) as referred to in section (2) point b, the CCP may separate the mechanism for the order of use of funding sources (default waterfall) for financial transactions as referred to in Article 5 based on asset class and/or type of financial transaction. (4) Bank Indonesia may request the CCP to adjust the capital allocation as referred to in section (2) point c by taking the risk profile, business activities, and/or financial condition of the CCP into account.
Article 98
In implementing effective liquidity risk management, the CCP shall at least:
a. identify, measure, monitor, and manage liquidity risk; b. maintain sufficient liquidity to undertake securities settlement payments, Variation Margin, and other payments; and
c. carry out assessments of the adequacy of liquidity sources
through scenario analysis and/or stress tests on a regular basis.
Article 99
In implementing effective business risk management, the CCP shall maintain sufficient liquid net assets to anticipate potential business losses of at least 6 (six) months of operating costs.
Article 100
In implementing effective custody risk management, the CCP shall at least:
a. evaluate and understand exposure to custodians; and b. have access to securities submitted by Members.
Article 101
In implementing effective investment risk management, the CCP shall invest in liquid instruments with low credit risk and market risk.

Article 102
(1) In implementing effective operational risk management, the CCP shall at least:
a. identify, measure, monitor, and manage operational risk; b. have adequate information technology to support CCP operational activities and communication networks that meet the principles of confidentiality, integrity, and availability; and
c. have business continuity management and disaster
recovery plans.
(2) Information technology and communication networks as referred to in section (1) point b must be audited periodically. (3) Business continuity management and disaster recovery plans as referred to in section (1) point c must support CCP to undertake settlements not later than the end of the Business Day if a disruption or force majeure occurs.
Part Two
Implementation of Governance Principles
Article 103
(1) The CCP is required to implement the principles of good governance as determined in Law on the development and strengthening of the financial sector. (2) The principles of good governance as referred to in section (1) shall at least include:
a. transparency; b. accountability;
c. responsibility;
d. independence; and e. fairness.
(3) In addition to implementing the principles as referred to in
section (1), the CCP must follow developments in industry
dynamics to implement good governance.
(4) The CCP is required to submit a report on the implementation of good governance to Bank Indonesia.
Article 104
In implementing good governance, the CCP shall at least:
a. have objectives that prioritize the security and efficiency of CCP, the stability of the financial system, and the public interest; b. have documentation on roles and responsibilities of the director in charge of CCP;
c. have procedures to identify, address, and manage
Members' conflicts of interest;

d. ensure that the director in charge of CCP has adequate skills and experience to support the implementation of duties; e. have documentation on the roles and responsibilities of CCP management; and f. disclose strategic decisions taken to relevant authorities, Members, shareholders, and the public.
Part Three
Administrative Sanctions
Article 105
CCP that violates the provisions as referred to in Article 94
section (1), Article 94 section (4), Article 103 section (1), and
Article 103 section (4) shall be subject to administrative
sanctions in the form of:
a. written reprimand; b. temporary, partial, or complete suspension of CCP business activities; and/or
c. revocation of CCP business license.
CHAPTER XII
SUPERVISION
Article 106
(1) Bank Indonesia shall supervise the implementation of CCP. (2) Supervision as referred to in section (1) shall include:
a. indirect supervision; and/or b. examination. (3) Supervision as referred to in section (1) shall be carried out by taking applicable international principles and/or standards into account.
Article 107
(1) In implementing supervision as referred to in Article 106
section (1), the CCP is required to provide and submit data,
information, statements, and/or explanations required by Bank Indonesia. (2) The CCP is required to ensure the truth, completeness, and accuracy of data, information, and/or statements submitted to Bank Indonesia. (3) CCP that violates the provisions as referred to in section (1) and/or section (2) shall be subject to administrative sanctions in the form of a written reprimand.
Article 108
(1) Bank Indonesia may assign another party to carry out the examination as referred to in Article 106 section (2) point b.

(2) The other party assigned to carry out the examination as referred to in section (1) is required to maintain the confidentiality of data, information, and/or statements obtained from the examination results. (3) Other parties that violate the provisions as referred to in
section (2) shall be subject to administrative sanctions in
the form of a written reprimand.
Article 109
(1) Bank Indonesia may supervise third parties that cooperate with CCP. (2) CCP that cooperates with third parties as referred to in
section (1) is required to ensure that Bank Indonesia may:
a. have access to data and information required for supervision; and b. supervise third parties that cooperate with CCP. (3) CCP that violates the provisions as referred to in section (2) shall be subject to administrative sanctions in the form of a written reprimand.
CHAPTER XIII
PROCEDURES FOR IMPOSING SANCTIONS
Article 110
(1) Bank Indonesia shall impose administrative sanctions related to the implementation of CCP against:
a. CCP; and b. other parties, which violates the provisions as determined in Bank Indonesia Regulation on Money Markets and Foreign Exchange Markets and this Regulation of Member of Board of Governors. (2) Breach of the provisions referred to in section (1) shall be subject to administrative sanctions in the form of a written reprimand. (3) Bank Indonesia may impose administrative sanctions in the form of temporary, partial, or complete suspension of CCP business activities and/or Tri-Party Agent activities after the CCP has been subject to administrative sanctions in the form of a written reprimand by considering:
a. frequency of occurrence of breach of the same provisions by the CCP in a certain period; b. the number of provisions violated by the CCP on a certain period; or
c. the intensity of breach committed by the CCP.
(4) Bank Indonesia may impose administrative sanctions in the form of temporary, partial, or complete suspension of activities in the Money Market and/or Foreign Exchange Market against another party after the other party has been

subject to administrative sanctions in the form of a written reprimand by considering:
a. the frequency of occurrence of breach of the same provisions by the other party in a certain period; b. the number of provisions violated by the other party in a certain period; or
c. the intensity of the breach committed by the other
party.
(5) Bank Indonesia may impose administrative sanctions in the form of:
a. revocation of CCP business license; or b. revocation of licenses and/or assignments of other parties, if the CCP or other parties subject to administrative sanctions as referred to in section (3) or section(4) fail to carry out the imposition of administrative sanctions as referred to in section (3) or section (4) within a period of 3 (three) months after the date of the letter imposing administrative sanctions.
Article 111
(1) Based on certain considerations, Bank Indonesia may impose administrative sanctions against CCP in the form of:
a. temporary, partial, or complete suspension of CCP business activities and/or Tri-Party Agent activities; or b. revocation of CCP business license, without prior imposition of administrative sanctions in the form of a written reprimand as referred to in Article 110
section (2).
(2) Based on certain considerations, Bank Indonesia may impose administrative sanctions against other parties in the form of:
a. temporary, partial, or complete suspension of activities in the Money Market and/or Foreign Exchange Market; or b. revocation of licenses and/or determinations, without prior imposition of administrative sanctions in the form of a written reprimand as referred to in Article 110
section (2).
(3) Certain considerations as referred to in section (1) and
section (2) shall include:
a. potential impacts and/or impacts arising from breach committed against the Money Market and Foreign Exchange Market; and b. other considerations determined by Bank Indonesia.

Article 112
(1) CCP that is subject to administrative sanctions in the form of temporary, partial, or complete suspension of CCP business activities and/or Tri-Party Agent activities may not carry out business activities to facilitate financial transactions as referred to in Article 5 that have just been received during the period of imposition of administrative sanctions. (2) The CCP as referred to in section (1) must continue to carry out CCP business activities for financial transactions as referred to in Article 5 which have been carried out before the imposition of administrative sanctions by Bank Indonesia and are currently ongoing, except:
a. settlement of ongoing transactions has been carried out through early termination; or b. the ongoing transaction position has been transferred to another CCP. (3) The CCP as referred to in section (1) may only resume business activities after the time limit of administrative sanction has expired.
CHAPTER XIV
EXIT POLICY
Article 113
(1) Exit policy shall be carried out by Bank Indonesia through revoking:
a. CCP business license; and/or b. licenses and/or determinations of other parties. (2) The exit policy as referred to in section (1) shall be carried out by considering:
a. results of Bank Indonesia's supervision and/or evaluation; b. information and/or data and recommendations from other relevant authorities and/or self-regulatory organizations in the Money Market and Foreign Exchange Market sectors;
c. corporate actions as referred to in Article 72;
d. court decision that has permanent legal force; e. request by CCP itself; f. imposition of administrative sanctions in the form of revocation of licenses or determinations; and/or g. other considerations determined by Bank Indonesia.
Article 114
(1) CCP whose business licenses have been revoked may not carry out business activities to facilitate financial transactions as referred to in Article 5 that are just received after the business license has been revoked.

(2) CCP whose business license is revoked by Bank Indonesia results in the recommendation given by Bank Indonesia for the Tri-Party Agent function ending by law. (3) The CCP as referred to in section (1) must complete financial transactions as referred to in Article 5 which have been carried out before the revocation of the business license and are currently ongoing, through:
a. settlement of ongoing transactions through early termination; or b. transfer of the position of ongoing transactions to another CCP.
CHAPTER XV
CORRESPONDENCE
Article 115
(1) Correspondence related to the organization of CCP shall be addressed to:
Department of Financial Market Development Bank Indonesia email: bicara@bi.go.id and DPPK-KPIPK@bi.go.id. (2) Correspondence related to licensing shall be addressed to:
Department of Banking Services, Licensing, and Treasury Operations Bank Indonesia email: cs_perizinan@bi.go.id. (3) Correspondence related to periodic reports shall be addressed to:
Report Management and Compliance Department Bank Indonesia email: DPKL-GPLB-PLBP@bi.go.id. (4) Correspondence related to incidental reports shall be addressed to:
Department of Monetary and Market Macroprudential Surveillance Bank Indonesia email: DSMM-KSMR@bi.go.id. (5) In the event of a change in the correspondence addresses as referred to in section (1), section (2), section (3), and/or
section (4), Bank Indonesia shall inform the change in the
correspondence addresses through letter and/or other media determined by Bank Indonesia.
CHAPTER XVI
CLOSING PROVISIONS
Article 116
At the time when this Regulation of Member of Board of Governors comes into force, Regulation of Member of Board of

Governors Number 22/14/PADG/2020 dated 28 May 2020 on Procedures for Licensing and Organizing Central Counterparty for Over-the-Counter Interest Rate and Exchange Rate Derivative Transactions, is repealed and declared ineffective.
Article 117
This Regulation of Member of Board of Governors comes into force on the date of its enactment. In order that any person may know hereof, it is ordered to promulgate this Regulation of Member of Board of Governors by its placement in the Bulletin Gazette of the Republic of Indonesia. Issued in Jakarta, On 18 September 2024 THE MEMBER OF THE BOARD OF GOVERNORS, Signed. DESTRY DAMAYANTI

ELUCIDATION
OF
REGULATION OF MEMBER OF BOARD OF GOVERNORS NUMBER 9 OF 2024 ON THE ORGANIZATION OF CENTRAL COUNTERPARTY
I. GENERAL
Based on Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector, the implementation of markets in the financial sector must be supported by Financial Market Infrastructure that follows technological developments. The Law also regulates the strengthening of Bank Indonesia's authority in regulating, developing, and supervising the Money Market and Foreign Exchange Market. As a follow-up to these two mandates, Bank Indonesia has issued Bank Indonesia Regulation Number 6 of 2024 on the Money Market and Foreign Exchange Market which also includes the regulation, development, and supervision of the Financial Market Infrastructure as an integrated part of the regulation, development, and supervision of the Money Market and Foreign Exchange Market as a whole (end-to- end). One of the Financial Market Infrastructure that may be organized by parties other than Bank Indonesia is CCP. Bank Indonesia regulates, develops, and supervises CCP to ensure that CCP is implemented in accordance with the principles of security, effectiveness, efficiency, and reliability. In addition, the implementation of CCP takes into account aspects of interconnection, interoperability, and integration with other Financial Market Infrastructures and is in line with applicable international principles and/or standards. As a Systemic Financial Market Infrastructure, CCP is required to comply with applicable international principles and/or standards, including principles for financial market infrastructures. This is based on the consideration that the CCP has a strategic position to support the development of the Money Market and Foreign Exchange Market as well as the development of the financial market as a whole. In this regard, the CCP may play a role in reducing credit risk (counterparty risk) through taking over the credit risk faced by sellers and purchasers, reducing market segmentation, reducing interconnectedness, increasing transparency, and increasing the efficiency of financial transactions. In addition, the implementation of the CCP is also a manifestation of Indonesia's commitment to fulfilling the recommendations of the Group of Twenty (G20) adopted by the Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO). Based on the

abovementioned backgrounds, it is necessary for Bank Indonesia to issue the Regulation of Member of Board of Governors on the Organization of Central Counterparty.
II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.
Article 2
Section (1)
Sufficiently clear.
Section (2)
Sufficiently clear.
Section (3)
Point a
Sufficiently clear.
Point b
Sufficiently clear.
Point c
Sufficiently clear.
Point d
Sufficiently clear.
Point e
Efforts to ensure the reliability, availability, and security of the implementation of CCP within the scope of its business activities shall be carried out, among other things, through the existence of a mechanism to evaluate the effectiveness and efficiency of business activities in accordance with the CCP function.
Article 3
Section (1)
Sufficiently clear.
Section (2)
Example 1:
ABC CCP based on the business license granted by Bank Indonesia only carries out the Novation function. In the event that ABC CCP will carry out the Open Offer function, ABC CCP must first obtain a recommendation from Bank Indonesia. Example 2:
XYZ CCP based on the business license granted by Bank Indonesia carries out the Novation and Open Offer functions, therefore CCP XYZ no longer needs to obtain a recommendation from Bank Indonesia.
Article 4
Sufficiently clear.

Article 5
Section (1)
Money Market transactions and Foreign Exchange Market transactions as well as financial instruments and/or other financial transactions recommended and/or determined by Bank Indonesia shall include those conducted based on sharia principles.
Section (2)
Sufficiently clear.
Section (3)
Sufficiently clear.
Section (4)
Other media determined by Bank Indonesia shall include Bank Indonesia's letter to CCP.
Article 6
Section (1)
Sufficiently clear.
Section (2)
Sufficiently clear.
Section (3)
Sufficiently clear.
Section (4)
Principles for financial market infrastructures are a document published by the Bank for International Settlements (BIS) and the International Organization of Securities Commissions (IOSCO) in 2012 and may be evaluated by these institutions. Point a Sufficiently clear. Point b Aspects of Bank Indonesia's responsibility shall include:

1. CCP regulation and supervision;
2. regulatory and supervisory authority and resources;
3. transparency on policies related to CCP;
4. application of international principles and/or standards
   applicable to the CCP; and
5. cooperation with other authorities.
   Section (5)
   Sufficiently clear.
   Article 7
   Sufficiently clear.
   Article 8
   Customary communication means and procedures shall include the use of the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
   Article 9

Section (1)
Point a
Bank Indonesia may engage capital participation in CCP in line with the authority to engage capital participation based on the Law on Bank Indonesia. Point b Sufficiently clear. Point c Sufficiently clear. Point d Sufficiently clear.
Section (2)
Point a
Sufficiently clear.
Point b
Sufficiently clear.
Point c
The policy on strengthening the institutional aspects of CCP in the form of implementation of corporate actions aims to create a strong, efficient, and competitive CCP, which is in line with the achievement of Bank Indonesia's duties and objectives. Point d Sufficiently clear.
Section (3)
Sufficiently clear.
Section (4)
Sufficiently clear.
Article 10
Sufficiently clear.
Article 11
Sufficiently clear.
Article 12
Sufficiently clear.
Article 13
Sufficiently clear.
Article 14
Sufficiently clear.
Article 15
Section (1)
CCP Funds are Member’s funds managed by CCP.
Section (2)
Sufficiently clear.

Section (3)
Sufficiently clear.
Article 16
Section (1)
Point a
Sufficiently clear.
Point b
Sufficiently clear.
Point c
Fulfillment of the principles of transparency, openness of information, and accountability shall be at least through requesting opinions and inputs from Members and other interested parties.
Section (2)
Sufficiently clear.
Article 17
Point a
Sufficiently clear.
Point b
Rule books for the organization of CCP shall contain a clear description of the costs. Point c Committees supporting the organization of CCP shall include the CCP Clearing and risk management committees. Point d Sufficiently clear. Point e Sufficiently clear. Point f Sufficiently clear. Point g Sufficiently clear.
Article 18
Sufficiently clear.
Article 19
Sufficiently clear.
Article 20
Sufficiently clear.
Article 21
Sufficiently clear.
Article 22
Sufficiently clear.

Article 23
Section (1)
Sufficiently clear.
Section (2)
Haircut is a reducing factor for the price of securities.
Section (3)
The term "Concentration limit" means the maximum limit on the type of securities and/or value of securities issued by an issuer that may be accepted as Initial Margin and Variation Margin.
Section (4)
Sufficiently clear.
Article 24
Section (1)
The term "Human resources" means members of the board of directors, members of the board of commissioners, permanent employees, and non-permanent employees of CCP.
Section (2)
The term "Continuous" means that the quality development of human resources shall be carried out continuously in a systematic, planned, and objective manner to anticipate the development of CCP's future business activities.
Section (3)
Point a
Sufficiently clear.
Point b
Competency certification in supporting the implementation of CCP business activities shall include competency in the fields of software, hardware, and information technology security related to Financial Market Infrastructure. Point c Improvement of other competencies and skills shall include improving competency and expertise in the leadership sector, for example, leadership training.
Section (4)
Sufficiently clear.
Section (5)
Sufficiently clear.
Article 25
Section (1)
The term "Current year’s budget" means each CCP financial year.
Section (2)
The amount or nominal value of education and training funds of 3.5% (three point five percent) is the minimum amount or nominal value provided and realized by CCP. Gross salary expense is an expense recorded in the CCP profit (loss) item which consists of salaries for the board of directors,

salaries and wages for other than the board of directors, and honorariums for the board of commissioners of CCP.
Section (3)
Example:
CCP has carried out business activities on 1 October 2024. Starting from the 2028 financial year, the CCP must provide an amount or nominal value of education and training funds of at least 3.5% (three point percent) of the total gross salary expense realization in 2027.
Article 26
Sufficiently clear.
Article 27
Sufficiently clear.
Article 28
Sufficiently clear.
Article 29
Section (1)
Point a
Sufficiently clear.
Point b
Sufficiently clear.
Point c
Sufficiently clear.
Point d
Fulfillment of the principles of security, effectiveness, efficiency, and reliability is, among other things, through the availability of complete and adequate standard operating procedures as well as the implementation of endurance tests. Point e Sufficiently clear. Point f Sufficiently clear. Point g Sufficiently clear.
Section (2)
Sufficiently clear.
Article 30
Section (1)
In establishing the rule books for the organization of the Tri-Party Agent, the CCP may refer to the mechanisms and provisions related to the establishment of rule books for the organization of CCP which are relevant in the implementation of the Tri-Party Agent function by the CCP. Point a

Sufficiently clear.
Point b
Sufficiently clear.
Point c
Fulfillment of the principles of transparency, openness of information, and accountability is at least through requests for opinions and inputs from Tri-Party Agent service users and other interested parties.
Section (2)
Sufficiently clear.
Article 31
Sufficiently clear.
Article 32
Sufficiently clear.
Article 33
Sufficiently clear.
Article 34
Sufficiently clear.
Article 35
Sufficiently clear.
Article 36
Section (1)
The connectivity of financial market infrastructure across countries is known as FMI link.
Section (2)
Sufficiently clear.
Section (3)
Sufficiently clear.
Article 37
Sufficiently clear.
Article 38
Section (1)
The term "Infrastructure support service providers" means support service providers for Financial Market Infrastructure. Support service providers shall include technology providers to support CCP business activities.
Section (2)
Sufficiently clear.
Section (3)
Sufficiently clear.
Section (4)

Point a
Bank Indonesia and CCP shall have access to the required data and information on infrastructure support service providers as regulated in the Law on the development and strengthening of the financial sector. Point b Sufficiently clear.
Section (5)
Sufficiently clear.
Article 39
Sufficiently clear.
Article 40
Section (1)
Sufficiently clear.
Section (2)
Sufficiently clear.
Section (3)
Sufficiently clear.
Section (4)
Sufficiently clear.
Section (5)
Point a
Basic information related to customers shall include company name, address, and contact person for customers who are indirect Members. Point b Sufficiently clear.
Section (6)
Sufficiently clear.
Article 41
Section (1)
Sufficiently clear.
Section (2)
Sufficiently clear.
Section (3)
The term "Bank" means a commercial bank that carries out business activities conventionally as referred to in the Law on banking and a commercial bank that carries out business activities based on sharia principles as referred to in the Law on sharia banking, including branch offices of banks domiciled abroad but excluding bank offices operating abroad.
Article 42
Sufficiently clear.
Article 43

Sufficiently clear.
Article 44
Sufficiently clear.
Article 45
Section (1)
Sufficiently clear.
Section (2)
Point a
Sufficiently clear.
Point b
Readiness to provide data based on the provisions of laws and regulations shall include providing data required by banks to calculate their capital obligations to CCP.
Article 46
Sufficiently clear.
Article 47
Sufficiently clear.
Article 48
Sufficiently clear.
Article 49
Sufficiently clear.
Article 50
Point a
Sufficiently clear.
Point b
The term "Capital" means paid-up capital.
Point c
Sufficiently clear.
Point d
Sufficiently clear.
Point e
Sufficiently clear.
Point f
Sufficiently clear.
Point g
Sufficiently clear.
Point h
Sufficiently clear.
Point i
Sufficiently clear.
Point j
Sufficiently clear.

Article 51
Sufficiently clear.
Article 52
Sufficiently clear.
Article 53
Section (1)
Point a
Sufficiently clear.
Point b
Other relevant authorities shall include financial sector authorities other than Bank Indonesia.
Section (2)
Sufficiently clear.
Article 54
Sufficiently clear.
Article 55
Sufficiently clear.
Article 56
Sufficiently clear.
Article 57
Sufficiently clear.
Article 58
Sufficiently clear.
Article 59
Sufficiently clear.
Article 60
Sufficiently clear.
Article 61
Section (1)
The date the CCP system is connected to the Financial Market Infrastructure organized by Bank Indonesia is as stated in the CCP connection agreement.
Section (2)
Sufficiently clear.
Section (3)
Sufficiently clear.
Article 62

Sufficiently clear.
Article 63
Section (1)
The term "Independent commissioner" means a member of the board of commissioners who does not have any financial, management, share ownership, and/or family relationships with other members of the board of commissioners, board of directors, and/or controlling shareholders or other relationships that could affect the ability to act independently. The term "Board of commissioners" means the company organ tasked with carrying out general and/or specific supervision in accordance with the articles of association and providing advice to the board of directors. The term "Director in charge of CCP" means a member of the board of directors who is responsible for the CCP function. The term "Board of directors" means the company organ that has the authority and full responsibility for managing the company for the benefit of the company, in accordance with the aim and purpose of the company and representing the company both inside and outside the court in accordance with the provisions of the articles of association. Point a Number 1 Criminal act in the financial sector shall include criminal act regulated in the Law on banking, the Law on capital markets, and the Law on the development and strengthening of the financial sector. Number 2 Sufficiently clear. Number 3 Sufficiently clear. Point b Sufficiently clear. Point c Sufficiently clear. Point d The term "Failed list" means a list administered by the relevant authorities which contains parties who are prohibited from becoming shareholders, controlling shareholders, members of the board of directors, members of the board of commissioners, and executive officials in the financial sector based on the provisions of laws and regulations.
Section (2)
Experience that supports CCP management shall include experience in the fields of Clearing as well as Money Market transactions and Foreign Exchange Market transactions, among

other things, as demonstrated by ownership of treasury certificates.
Section (3)
Sufficiently clear.
Article 64
Sufficiently clear.
Article 65
Sufficiently clear.
Article 66
Section (1)
Point a
Sufficiently clear.
Point b
Sufficiently clear.
Point c
Other relevant authorities shall include financial sector authorities other than Bank Indonesia.
Section (2)
Sufficiently clear.
Section (3)
Sufficiently clear.
Article 67
The term "Actions, duties, and functions as an independent commissioner and/or a director in charge of CCP" means acting on behalf of the CCP in making decisions that are legally binding on the CCP and/or taking important decisions that affect the CCP's financial condition. Even though the independent commissioner and/or director in charge of CCP has been appointed by the RUPS, in order to carry out the actions, duties, and functions, the independent commissioner and/or director in charge of CCP must still obtain prior approval from Bank Indonesia.
Article 68
Section (1)
Sufficiently clear.
Section (2)
Point a
Sufficiently clear.
Point b
Sufficiently clear.
Point c
The term "Other capital components" means capital components that can be calculated and/or are equivalent to capital.

Section (3)
Sufficiently clear.
Article 69
Sufficiently clear.
Article 70
Sufficiently clear.
Article 71
Section (1)
The term "Merger" means a legal act carried out by one or more companies to merge with another existing company which results in the assets and liabilities of the merging company being transferred by law to the company accepting the merger and subsequently the legal entity status of the merging company ending by law. The term "Consolidation" means a legal act carried out by two or more companies to consolidate by establishing a new company which by law obtains the assets and liabilities of the consolidated companies and the legal entity status of the consolidated company ends by law. Corporate actions in the form of spin-offs may be carried out by means of pure spin-off or impure spin-off. The term "Pure spin-off" means a spin-off that results in all assets and liabilities of the company being transferred by law to 2 (two) or more other companies that accept the transfer and the company that carries out the spin- ends by law. The term "Impure spin-off" means a spin-off that results in part of the assets and liabilities of the company being transferred by law to 1 (one) or more other companies that accept the transfer and the company that carries out the spin-off continues to exist. The term "Takeover" means a legal act carried out by a legal entity or individual to take over shares in a company which results in the transfer of control over the company.
Section (2)
Sufficiently clear.
Section (3)
Sufficiently clear.
Section (4)
Sufficiently clear.
Article 72
Sufficiently clear.
Article 73
Sufficiently clear.
Article 74

Section (1)
Point a
Sufficiently clear.
Point b
Other relevant authorities shall include financial sector authorities other than Bank Indonesia.
Section (2)
Sufficiently clear.
Section (3)
Steps for implementing corporate actions shall include preparing for the implementation of the RUPS.
Section (4)
Sufficiently clear
Article 75
Section (1)
Sufficiently clear.
Section (2)
Other business activities that are still related to the business license granted by Bank Indonesia shall include Tri-Party Agent in accordance with Bank Indonesia's recommendations or the organization of clearing and guarantee services for the settlement of stock exchange transactions for which the business license is granted by other relevant authorities.
Section (3)
Point a
Example:
CCP separates Default Fund Contribution, Initial Margin, and Variation Margin for financial transactions in the form of domestic non-deliverable forward transactions with default fund contribution and/or margin for financial transactions in the form of shares for which the business license is granted by other relevant authorities. Point b Example:
CCP separates the order of use of funding sources (default waterfall) for financial transactions in the form of domestic non-deliverable forward transactions from the order of use of funding sources (default waterfall) for financial transactions in the form of shares for which business the license is granted by other relevant authorities.
Article 76
Section (1)
Fulfillment of obligations related to share ownership composition shall be carried out both during the CCP licensing process and after the CCP obtains a business license from Bank Indonesia.
Section (2)
Example:

PT ABC is owned by PT X at 30% (thirty percent), PT Y at 20% (twenty percent), and PT Z at 50% (fifty percent). PT X is owned by QRS Ltd at 40% (forty percent). PT X's ownership of PT ABC shall be categorized as direct ownership, while QRS Ltd's ownership of PT ABC shall be categorized as indirect ownership.
Article 77
Section (1)
The term "Controlling shareholder" means a shareholder who owns:
a. shares amounting to 25% (twenty-five percent) or more of the number of shares issued by CCP and have voting rights; or b. shares of less than 25% (twenty-five percent) of the total number of shares issued by CCP and have voting rights, but it can be proven that the person concerned has exercised control over CCP, either directly or indirectly. Example:
PT XYZ becomes the controlling shareholder of CCP, PT XYZ is prohibited from becoming the controlling shareholder of another CCP because it is a similar Financial Market Infrastructure. However, PT XYZ may become a controlling shareholder of a brokerage firm, systematic internaliser, or stock exchange organizer.
Section (2)
Sufficiently clear.
Article 78
Sufficiently clear.
Article 79
Section (1)
The granting of recommendations and/or implementation of consultations is a form of implementing Bank Indonesia's policies in developing CCP that has obtained a business license from Bank Indonesia.
Section (2)
Sufficiently clear.
Section (3)
Sufficiently clear.
Article 80
Sufficiently clear.
Article 81
Sufficiently clear.
Article 82
Point a

CCP's business plan as a Tri-Party Agent shall contain, among other things, a business model including the mechanism for implementing the Tri-Party Agent function. Point b Sufficiently clear. Point c Sufficiently clear. Point d Sufficiently clear.
Article 83
Sufficiently clear.
Article 84
Section (1)
Sufficiently clear.
Section (2)
Supporting documents shall include draft rule books.
Article 85
Sufficiently clear.
Article 86
Sufficiently clear.
Article 87
Section (1)
Sufficiently clear.
Section (2)
Sufficiently clear.
Section (3)
Data and information on the implementation of CCP shall include rule books for the implementation of CCP and transaction data.
Section (4)
The provisions of laws and regulations shall include the Law on electronic information and transactions, the Law on personal data protection, and Government Regulation on the implementation of electronic systems and transactions.
Section (5)
Sufficiently clear.
Article 88
Section (1)
Sufficiently clear.
Section (2)
Point a
CCP daily operational report shall contain, among other things, Clearing results, transaction settlement, Initial

Margin and Variation Margin, Default Fund Contribution, and Novation results. Point b CCP monthly operational report shall contain a recapitulation of activities during the relevant month period, including Clearing results, transaction settlement, Initial Margin, Default Fund Contribution, and conditions for the sequence of use of funding sources (default waterfall). Point c Sufficiently clear. Point d Report on the stress test results shall contain the calculation of stress loss over Initial Margin for each Member. Point e Quarterly financial statement shall contain the financial position at the end of the quarter. Point f Annual financial statement shall contain the annual financial position that has been audited by a public accountant. Point g Sufficiently clear. Point h Sufficiently clear. Point i Sufficiently clear. Point j Sufficiently clear. Point k Other reports shall include a report on the implementation of the Tri-Party Agent.
Section (3)
Point a
Sufficiently clear.
Point b
Sufficiently clear.
Point c
Sufficiently clear.
Point d
Sufficiently clear.
Point e
Sufficiently clear.
Point f
Sufficiently clear.
Point g
Other reports shall include a report on the implementation of the Tri-Party Agent.
Section (4)
Sufficiently clear.

Article 89
Sufficiently clear.
Article 90
Sufficiently clear.
Article 91
Section (1)
Sufficiently clear.
Section (2)
Sufficiently clear.
Section (3)
Sufficiently clear.
Section (4)
The term "Offline" means the submission of reports that does not go through the Bank Indonesia reporting system, including through letter, electronic mail, and/or information exchange application (IEA).
Article 92
Certain considerations shall include the determination of national holidays and/or joint leave days determined by the Government and/or Bank Indonesia.
Article 93
Sufficiently clear.
Article 94
Section (1)
Sufficiently clear.
Section (2)
Sufficiently clear.
Section (3)
Point a
The term "Legal risk" means the risk caused by weaknesses in legal aspects and changes in regulations that can result in losses. Point b The term “Credit risk” means the risk caused by a counterparty to a transaction being unable to fulfill all of its financial obligations at maturity or at a certain time in the future. Point c The term "Liquidity risk" means the risk caused by a counterparty not having sufficient funds to fulfill its financial obligations at maturity or at the agreed time even though it can ultimately fulfill these obligations in the future. Point d

The term “Business risk” means the potential for a decline in the CCP’s financial position from a business perspective as a result of a decrease in revenue or an increase in expenses so that expenses exceed revenue and result in losses that must be charged to capital. Point e The term "Custody risk" means the risk of loss of assets stored in a custodian if the custodian experiences bankruptcy, negligence, embezzlement, fraud, substandard administration, or inadequate administration. Point f The term “Investment risk” means the risk of loss faced by the CCP when investing its own resources or those of its Members, such as collateral and margin. Point g The term “Operational risk” means the risk caused by limitations of information systems or internal processes, human error, management failure, or disruption from external events that will result in the reduction, deterioration, or non-functioning of services provided by the CCP. Included in operational risk is cyber risk. Point h Sufficiently clear.
Section (4)
Sufficiently clear.
Article 95
Sufficiently clear.
Article 96
Section (1)
Sufficiently clear.
Section (2)
Point a
Sufficiently clear.
Point b
The endurance test in the form of stress testing shall include, among other things, a sensitivity test. Point c Sufficiently clear.
Article 97
Section (1)
Sufficiently clear.
Section (2)
Point a
Sufficiently clear.
Point b
Sufficiently clear.

Point c
CCP capital allocation of Rp100,000,000,000.00 (one hundred billion rupiah) is 25% (twenty-five percent) of CCP's minimum equity. The use of CCP capital allocation in the order of use of funding sources (default waterfall) shall be carried out before the use of Default Fund Contribution from Members who are not in default. Point d Sufficiently clear. Point e Sufficiently clear. Point f Sufficiently clear. Point g Sufficiently clear. Point h Sufficiently clear.
Section (3)
Example:
CCP separates the sequence of use of funding sources (default waterfall) based on asset class, interest rate, and exchange rate. CCP may also separate the order of use of funding sources (default waterfall) based on the type of financial transaction, for example, domestic non-deliverable forward transactions and FX swaps.
Section (4)
Sufficiently clear.
Article 98
Sufficiently clear.
Article 99
Business risks shall include the risk of loss due to business strategy errors, negative cash flow, and other unexpected operational costs.
Article 100
Sufficiently clear.
Article 101
Investments made by the CCP are not oriented as the main source of income but are more aimed at maintaining sufficient liquidity to meet obligations in a timely manner.
Article 102
Sufficiently clear.
Article 103
Section (1)
Sufficiently clear.

Section (2)
Point a
Transparency shall include transparency in the decision￾making process and transparency in disclosing and providing relevant and easily accessible information to stakeholders. Point b Accountability shall include clarity of function and implementation of responsibilities. Point c Responsibility shall include the compliance of management with the provisions of laws and regulations and ethical values as well as standards, principles, and common practices. Point d Independence shall include a state of being managed independently and professionally and free from conflicts of interest and influence or pressure from any party that is not in accordance with the provisions of laws and regulations and ethical values as well as standards, principles, and common practices. Point e Fairness shall include equality, balance, and justice in fulfilling stakeholder rights arising from agreements, provisions of laws and regulations, and ethical values and standards, principles, and common practices.
Section (3)
This provision is intended to encourage the implementation of good governance so that the CCP can carry out its functions and create sound business practices.
Section (4)
Sufficiently clear.
Article 104
Sufficiently clear.
Article 105
Sufficiently clear.
Article 106
Sufficiently clear.
Article 107
Sufficiently clear.
Article 108
Section (1)
Examination by the other party shall be carried out for and on behalf of Bank Indonesia. The other party assigned by Bank Indonesia shall include public accountants and public appraisers.

In assigning another party to conduct an examination, Bank Indonesia shall issue a work order and determine the terms of reference.
Section (2)
The obligation of the other party to maintain the confidentiality of data, information, and/or statements obtained from the audit shall apply to commissioners, directors, managers, experts, supervisory staff, and support staff related to the audit.
Section (3)
Sufficiently clear.
Article 109
Section (1)
Sufficiently clear.
Section (2)
Point a
In ensuring that Bank Indonesia may have access to data and information required for supervision, the CCP that cooperates with third parties may, among other things, include a clause on data and information access rights in the cooperation agreement document and/or an addendum to the agreement. Point b Sufficiently clear.
Section (3)
Sufficiently clear.
Article 110
Section (1)
Sufficiently clear.
Section (2)
Sufficiently clear.
Section (3)
Point a
Sufficiently clear.
Point b
Sufficiently clear.
Point c
The intensity of breach committed by the CCP shall be assessed through, among other things, its influence on risk management in the implementation of the CCP.
Section (4)
Sufficiently clear.
Section (5)
Sufficiently clear.
Article 111
Sufficiently clear.
Article 112

Sufficiently clear.
Article 113
Sufficiently clear.
Article 114
Sufficiently clear.
Article 115
Sufficiently clear.
Article 116
Sufficiently clear.
Article 117
Sufficiently clear.