Regulation of the Financial Services Authority Number 68/POJK.04/2017 on Appraisers Conducting Activities in the Capital Market

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 68 /POJK.04/2017
CONCERNING
APPRASERS CONDUCTING ACTIVITIES IN THE CAPITAL MARKET BY THE GRACE OF GOD THE MOST HIGH, THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that appraisers play a major role as supporters of activities in the capital market field, so it is necessary to ensure the independence, objectivity, and professionalism of appraisers in carrying out their duties; b. that to maintain the independence, objectivity, and professionalism of appraisers, the role of the Financial Services Authority to regulate, develop, and supervise appraisers needs to be enhanced;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Appraisers Conducting Activities in the Capital Market;
Recalling: 1. Law Number 8 of 1995 concerning the Capital Market (State Gazette of the Republic of Indonesia Year 1995 Number 64, Supplement to the State Gazette of the Republic of Indonesia Number 3608); FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA

2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
   DECIDES:
   Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING APPRAISERS CONDUCTING ACTIVITIES IN THE CAPITAL MARKET.

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

1. Appraiser is an individual who, with their expertise, conducts appraisal activities in the capital market.
2. Appraisal is a work process to provide a written opinion on the economic value of an appraisal object.
3. Public Appraisal Service Firm, hereinafter abbreviated as KJPP, is a business entity in the form of a partnership that has received a business license from the Minister of Finance as a venue for Appraisers to conduct Appraisal activities.
4. Professional Education is basic education for Appraisers with subject matter regarding Appraisal activities and/or legislation in the field of capital market and other financial services, organized by the Appraiser Professional Association or parties approved or recognized by the Financial Services Authority.
5. Continuing Professional Education is advanced education for Appraisers with subject matter regarding Appraisal activities and/or legislation in the field of capital market and other financial services, organized by the Appraiser Professional Association or parties approved or recognized by the Financial Services Authority.
6. Appraiser Professional Association is a national professional organization for Appraisers that oversees Appraisers conducting Appraisal activities in the capital market.
7. Indonesian Appraisal Standards, hereinafter abbreviated as SPI, are basic guidelines that must be complied with by Appraisers in conducting Appraisals.
8. Indonesian Appraiser Code of Ethics, hereinafter abbreviated as KEPI, is an ethical guideline that must be complied with by Appraisers.
9. Periodic Report of Appraiser Activities is a report containing information about the Appraiser's activities in the capital market for 1 (one) year calculated from January 1 to December 31 or since registration with the Financial Services Authority if registered for less than 1 (one) year.
10. Professional Appraisal Assignment is an assignment received by the Appraiser from the assignor to conduct an Appraisal on an object, the purpose of the Appraisal, and a specific date where the Appraiser bases their opinion, which is presented in the Appraisal Report.
11. Key Employee is a person who has the authority and responsibility to plan, lead, and/or control company activities, including members of the Board of Commissioners, members of the Board of Directors, and managers of the party being appraised and/or the assignor.
12. Material Business Relationship is a business relationship with a value of more than 5% (five percent) of the total business income received by the assignor.
13. Assignor is a party that has obtained a license, approval, or registration from the Financial Services Authority and a party that submits a registration statement or whose registration statement has become effective, which provides an Appraisal assignment.
14. State Official is a state official as referred to in the Law concerning state civil apparatus.

Article 2
The scope of Appraisal activities conducted by Appraisers covers:
a. Property Appraisal; and/or b. Business Appraisal.

Article 3
In conducting Appraisal activities as referred to in Article 2, Appraisers may conduct activities as follows:
a. Property Appraisal activities, namely:

1. Real property appraisal;
2. Personal property appraisal;
3. Project construction/development appraisal;
4. Property development appraisal;
5. Plantation asset appraisal;
6. Fishery asset appraisal;
7. Forestry asset appraisal;
8. Mining asset appraisal; and
9. Other property appraisals;
   b. Business Appraisal activities, namely:
10. Company and/or business entity appraisal;
11. Investment in company appraisal;
12. Financial instrument appraisal;
13. Intangible asset appraisal;
14. Providing fairness opinions on transactions;
15. Preparation of project and business feasibility studies;
16. Appraisal of economic profits/losses caused by a certain activity or event; and
17. Other business appraisals.

CHAPTER II
APPRaiser REGISTRATION
First Section
Appraiser Registration Requirements
Article 4
Appraisers conducting Appraisal activities in the capital market must first be registered with the Financial Services Authority according to the scope as referred to in Article 2, and meet the requirements as regulated in this Financial Services Authority Regulation.

Article 5
The Appraiser registration requirements as referred to in Article 4 include:
a. having an Appraiser license for property and/or business from the Minister of Finance; b. never having committed disgraceful acts and/or being sentenced for proven criminal offenses in the financial field;
c. having good character and morality;
d. having become a member of the Appraiser Professional Association; e. not holding concurrent positions in any capacity at other KJPPs and/or other capital market supporting professions registered with the Financial Services Authority; f. having expertise in the capital market field fulfilled through Professional Education programs with a minimum of 30 (thirty) professional credit units in 1 (one) participation; g. holding the position of partner and/or shareholder in a KJPP; and h. never having been subjected to administrative sanctions in the form of cancellation of the Registered Certificate from the Financial Services Authority.

Article 6
KJPPs as referred to in Article 5 letter g must meet the following requirements:
a. having a business license from the Minister of Finance and led by an Appraiser who is registered with the Financial Services Authority; b. being a partnership form operated by at least 2 (two) Appraisers, with the provision that each shareholder is a partner and one of the shareholders acts as the lead partner;
c. applying at least 2 (two) levels of control in conducting Appraisals, namely the Appraiser responsible for signing the report and the mid-level supervisor who supervises the executive staff;
d. having and consistently applying quality control guidelines as regulated in the legislation of the Ministry of Finance regarding public Appraisers; e. being willing to undergo examinations conducted by the Financial Services Authority regarding the implementation of Appraisal work and quality control at the relevant KJPP; and f. making an agreement with an Appraiser from another KJPP that has the same scope of Appraisal activities regarding the transfer of responsibility if the relevant Appraiser is unable to perform their duties, in the event that the relevant KJPP does not have 2 (two) Appraisers with the same scope of Appraisal activities.

Second Section
Appraiser Registration Documents
Article 7
The application for Appraiser registration as a capital market supporting profession is submitted to the Financial Services Authority using the format of the Application for Registration of Appraiser as a Capital Market Supporting Profession as contained in the Appendix which is an integral part of this Financial Services Authority Regulation.

Article 8
(1) The registration application as referred to in Article 7 is accompanied by the following documents:
a. documents concerning the Appraiser:

1. the latest curriculum vitae and data of professional assignments signed with sufficient stamp duty;
2. photocopy of the taxpayer identification number in the name of the relevant Appraiser;
3. photocopy of the identity card;
4. latest color passport-sized photograph size 4x6 cm with a red background, 1 (one) copy;
5. photocopy of the Appraiser license for property and/or business from the Minister of Finance according to the scope of Appraisal activities submitted to the Financial Services Authority;
6. photocopy of the Professional Education certificate in the capital market field obtained within the last 2 (two) years calculated from the date of the Professional Education program;
7. photocopy of proof of membership in the Appraiser Professional Association;
8. recommendation letter from the Appraiser Professional Association stating that the relevant Appraiser has met the requirements established by the Appraiser Professional Association and is worthy of consideration to conduct activities in the capital market according to the scope of Appraisal activities possessed;
9. statement letter with sufficient stamp duty drafted using the format of the Appraiser Statement Letter as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, stating that the Appraiser:
   a) has never committed disgraceful acts and/or been sentenced for proven criminal offenses in the financial services field; b) does not hold concurrent positions in any capacity at other KJPPs and/or other capital market supporting professions registered with the Financial Services Authority; c) complies with SPI and other Appraisal standards that apply internationally if not yet regulated in SPI, as long as they do not conflict with the applicable Financial Services Authority Regulations, in conducting Appraisals; d) is willing to comply with KEPI; e) is willing to act independently, objectively, and professionally in conducting Appraisals; and f) has never been subjected to administrative sanctions in the form of cancellation of the Registered Certificate from the Financial Services Authority;

b. documents concerning the KJPP:

1. photocopy of the KJPP establishment deed along with the latest amendments;
2. photocopy of the business license from the Minister of Finance;
3. photocopy of the registered certificate for capital market supporting profession of the lead partner from the Financial Services Authority;
4. photocopy of the agreement letter with an Appraiser who has the same scope of Appraisal activities from another KJPP regarding the transfer of responsibility if the Appraiser of the relevant KJPP is unable to perform their duties, in the event that the relevant KJPP does not have 2 (two) Appraisers with the same scope of Appraisal activities;
5. organizational chart of the KJPP showing:
   a) the structure of partners, mid-level supervisors, and executive staff, along with the names holding those positions; and b) that in conducting Appraisals, the Appraiser applies at least 2 (two) levels of control, namely the Appraiser responsible for signing the report, and the mid-level supervisor who supervises the executive staff;
6. photocopy of the branch opening license from the Minister of Finance, for KJPPs that have branches;
7. photocopy of the approval letter from the Minister of Finance regarding the inclusion of the name of a foreign KJPP or foreign appraisal organization, if the KJPP cooperates with a foreign KJPP or foreign appraisal organization;
8. cooperation agreement document with a foreign KJPP or foreign appraisal organization, if the KJPP cooperates with a foreign KJPP or foreign appraisal organization;
9. photocopy of the taxpayer identification number in the name of the KJPP; and
10. statement letter with sufficient stamp duty drafted using the format of the Statement Letter of the Lead Partner of the KJPP as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, signed by the lead partner of the KJPP, stating that:
    a) the KJPP has quality control guidelines as regulated in the legislation of the Ministry of Finance regarding public Appraisers; b) the lead partner of the KJPP is responsible for the implementation of the applicable quality control guidelines at the relevant KJPP; and c) the KJPP is willing to undergo Financial Services Authority examinations regarding the implementation of Appraisal work and quality control at the relevant KJPP. (2) In providing the recommendation letter to the Appraiser as referred to in paragraph (1) letter a number 8, the Appraiser Professional Association must consider the following:
    a. the relevant Appraiser has had experience involved in the Appraisal process for capital market purposes for at least 3 (three) assignments within the last 3 (three) years; or b. the relevant Appraiser, within the last 24 (twenty-four) months, has participated in education in the capital market field organized by the Appraiser Professional Association for a total of 60 (sixty) professional credit units. (3) Each organization of education in the capital market field as referred to in paragraph (2) letter b must be at least 20 (twenty) professional credit units.

Third Section
Addition of Scope of Appraisal Activities
Article 9
(1) In the event that an Appraiser adds the scope of Appraisal activities from Property Appraiser or Business Appraiser to Property Appraiser and Business Appraiser, the Appraiser must submit an application for addition of the scope of Appraiser activities. (2) The application for addition of the scope of Appraiser activities as referred to in paragraph (1) is submitted to the Financial Services Authority using the format of the Application for Addition of Scope of Appraiser Activities as a Capital Market Supporting Profession as contained in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by:
a. the previously owned registered certificate for capital market supporting profession; b. photocopy of the Appraiser license for property and/or business from the Minister of Finance according to the scope of Appraisal activities submitted to the Financial Services Authority;
c. the latest curriculum vitae and data of professional assignments signed with sufficient stamp duty;
d. recommendation letter from the Appraiser Professional Association stating that the relevant Appraiser has met the requirements established by the Appraiser Professional Association and is worthy of consideration to conduct activities in the capital market according to the scope of Appraisal activities possessed; and e. photocopy of the agreement letter with another Appraiser who has the same scope of Appraisal activities from the KJPP regarding the transfer of responsibility if the relevant Appraiser is unable to perform their duties, in the event that the relevant KJPP does not have 2 (two) Appraisers with the same scope of Appraisal activities.

Fourth Section
Review of Registration and Addition of Scope of Appraisal Activities Applications
Article 10
In the context of reviewing applications for registration and addition of scope of Appraiser activities for Appraisers conducting activities in the capital market, if necessary, the Financial Services Authority may request additional documents to support the fulfillment of requirements as referred to in Article 8 and Article 9 paragraph (2).

Article 11
In the event that the application for registration or addition of scope of Appraiser activities as referred to in Article 8 or Article 9 paragraph (2) meets the requirements, within at most 45 (forty-five) days since the receipt of the complete application, the Financial Services Authority establishes the registered certificate for capital market supporting profession in the name of the applicant.

Article 12
(1) In the event that the application for registration or addition of scope of Appraiser activities as referred to in Article 8 or Article 9 paragraph (2) does not meet the requirements, within at most 45 (forty-five) days since the receipt of the application, the Financial Services Authority provides a notification letter to the applicant stating that:
a. the application for registration or addition of scope of Appraiser activities is incomplete; or b. the application for registration or addition of scope of Appraiser activities is rejected due to not meeting the requirements. (2) In the event that the Financial Services Authority does not provide a notification letter to the applicant within the time period as referred to in paragraph (1) letter a, then the application for registration or addition of scope of Appraiser activities as referred to in Article 7 or Article 9 paragraph (2) is deemed to have met the requirements.

Article 13
An applicant who does not complete the required document deficiencies and/or whose document deficiencies are not accepted by the Financial Services Authority within a period of 45 (forty-five) days after the date of the notification letter, as referred to in Article 12 paragraph (1) letter a, is deemed to have canceled the submitted Appraiser registration application, and the applicant may submit a new application.

Article 14
Documents submitted to the Financial Services Authority become the property of the Financial Services Authority.

CHAPTER III
VALIDITY PERIOD AND RE-REGISTRATION OF APPRAISER REGISTERED CERTIFICATE
Article 15
(1) The registered certificate for capital market supporting profession for Appraisers has a validity period of 5 (five) years and a re-registration application can be submitted.
(2) In the event that an Appraiser will submit a re-registration application for the registered certificate for capital market supporting profession, the relevant Appraiser must first fulfill all obligations based on legislation in the financial services sector and/or decisions of the Financial Services Authority that have not been fulfilled. (3) An Appraiser who submits a re-registration application and has fulfilled all obligations as referred to in paragraph (2) will receive a new registered certificate for capital market supporting profession with a validity period of 5 (five) years.

Article 16
(1) The re-registration application for the registered certificate for capital market supporting profession as referred to in Article 15 paragraph (2) is submitted to the Financial Services Authority with the provision that the re-registration application for the registered certificate for capital market supporting profession is accepted by the Financial Services Authority:
a. at earliest 90 (ninety) days before the validity period of the registered certificate for capital market supporting profession expires; and b. at latest 90 (ninety) days after the validity period of the registered certificate for capital market supporting profession expires. (2) The re-registration application for the registered certificate for capital market supporting profession as referred to in paragraph (1) is submitted using the format of the Application for Re-registration of Registered Certificate for Capital Market Supporting Profession as contained in the Appendix which is an integral part of this Financial Services Authority Regulation.

Article 17
In the event that the validity period of the registered certificate for capital market supporting profession for an Appraiser has expired, the Appraiser cannot conduct activities in the capital market field until the Financial Services Authority issues the registered certificate for capital market supporting profession.

Article 18
In addition to the conditions as referred to in Article 17, an Appraiser cannot conduct activities in the capital market if the following conditions occur:
a. the registered certificate for capital market supporting profession is canceled by the Financial Services Authority; and/or b. is under a sanction of suspension of the registered certificate for capital market supporting profession.

Article 19
(1) In the event that the Financial Services Authority approves the re-registration application for the registered certificate for capital market supporting profession as referred to in Article 15 paragraph (3), the Financial Services Authority issues a new registered certificate for capital market supporting profession within at most 25 (twenty-five) working days since the receipt of the complete application. (2) In the event that the re-registration application for the registered certificate for capital market supporting profession as referred to in Article 16 does not meet the requirements, within at most 25 (twenty-five) working days since the receipt of the application, the Financial Services Authority provides a notification letter to the applicant stating that:
a. the re-registration application is incomplete; or b. the re-registration application is rejected due to not meeting the requirements for re-registration.
(3) An applicant who does not complete the required document deficiencies and/or whose documents are not accepted by the Financial Services Authority within a period of 45 (forty-five) working days after the date of the notification letter as referred to in paragraph (2) letter a, is deemed to have canceled the submitted re-registration application for the registered certificate for capital market supporting profession.

Article 20
(1) An Appraiser is deemed to have resigned as an Appraiser registered with the Financial Services Authority if:
a. the Appraiser does not submit a re-registration application as referred to in Article 15 paragraph (1) within a maximum period of 90 (ninety) days after the expiration of the validity period of the registered certificate for capital market supporting profession; b. the submission of the re-registration application does not meet the requirements as referred to in Article 15 paragraph (2) within a maximum period of 90 (ninety) days after the expiration of the validity period of the registered certificate for capital market supporting profession; or
c. the Appraiser does not hold the position of partner and/or shareholder in a KJPP for 2 (two) years.
(2) In the event that an Appraiser is deemed to have resigned, the Financial Services Authority cancels the registered certificate for capital market supporting profession.
(3) The provisions as referred to in paragraph (1) letter a do not apply to Appraisers whose registered certificate for capital market supporting profession has been declared temporarily inactive by the Financial Services Authority because they are appointed as State Officials.

CHAPTER IV
OBLIGATIONS AND PROHIBITIONS OF APPRAISERS CONDUCTING ACTIVITIES IN THE CAPITAL MARKET First Section Obligations of Appraisers Conducting Activities in the Capital Market
Article 21
(1) Appraisers who are registered with the Financial Services Authority must:
a. conduct Appraisals in accordance with SPI, Appraisal guidelines, and Appraisal report presentation guidelines established by the Financial Services Authority, and/or other Appraisal standards that apply internationally if not yet regulated in SPI, as long as they do not conflict with the Financial Services Authority Regulations; b. continuously participate in Continuing Professional Education with a minimum of 5 (five) professional credit units every year;
c. submit to the Financial Services Authority the Periodic Report of Appraiser Activities at latest on January 15 of the following year;
d. report to the Financial Services Authority every change concerning data and

information on Appraisers and/or Professional Valuation Firms (KJPP) at the latest 10 (ten) working days after the occurrence of such changes, accompanied by supporting documents; e. comply with KEPI; f. conduct Valuations within the scope of Valuation activities as stated in the certificate of registration for capital market support professions; g. act independently, objectively, and professionally in conducting Valuations; and h. fulfill summons and/or undergo examinations by the Financial Services Authority regarding compliance with legislation in the capital market sector. (2) In the event that January 15 as referred to in paragraph (1) letter c falls on a holiday, the report must be submitted at the latest on the next 1 (one) working day. (3) An Appraiser is considered late in submitting the Periodic Report of Valuation Activities if the report is submitted after the deadline for submission of reports as referred to in paragraph (1) letter c or paragraphs (2) up to 30 (thirty) days thereafter. (4) An Appraiser is considered late in submitting reports of data and information changes from the Appraiser and/or KJPP if the report is submitted after the deadline for submission of reports as referred to in paragraph (1) letter d up to 30 (thirty) days thereafter. (5) In the event an Appraiser submits the Periodic Report of Valuation Activities as referred to in paragraph (1) letter c beyond the time limit as referred to in paragraph (2), the calculation of the number of days of delay in submitting the Periodic Report of Valuation Activities is calculated starting from the first day after the final submission deadline as referred to in paragraph (2).

(6) An Appraiser is considered not to have submitted the Periodic Report of Valuation Activities as referred to in paragraph (1) letter c if the report has not been submitted after the final deadline for delay in report submission as referred to in paragraph (3). (7) An Appraiser is considered not to have submitted reports of data and information changes from the Appraiser and/or KJPP as referred to in paragraph (1) letter d if the report has not been submitted after the final deadline for delay in report submission as referred to in paragraph (4).
Article 22
The obligation of Appraisers to follow Continuing Professional Education as regulated in Article 21 paragraph (1) letter b begins to apply for the following year since the Appraiser obtains the certificate of registration for capital market support professions from the Financial Services Authority.
Article 23
If Professional Education and/or Continuing Professional Education is not held within a period of 1 (one) year, the Financial Services Authority may establish other provisions.
Article 24
(1) Reports as referred to in Article 21 paragraph (1) letter c and letter d must be submitted in the form of printed documents.
(2) The reports as referred to in Article 21 paragraph (1) letter c must be submitted according to the scope of Valuation activities upon assignment from the Assignor, namely:
a. property valuation reports, which are prepared using the format of the Periodic Report of Valuation Activities for Property Valuation Services as stated in the Appendix which is an inseparable part of this Financial Services Authority Regulation; and/or b. business valuation reports, which are prepared using the format of the Periodic Report of Valuation Activities for Business Valuation Services as stated in the Appendix which is an inseparable part of this Financial Services Authority Regulation.
Article 25
In the event an Appraiser works at a KJPP that has more than 1 (one) partner registered with the Financial Services Authority, the obligation to submit the Periodic Report of Valuation Activities as referred to in Article 21 paragraph (1) letter c can be submitted simultaneously in 1 (one) cover letter signed by the leader of the KJPP partners.
Article 26
The obligation to report changes in data and information as regulated in Article 21 paragraph (1) letter d covers at least the following matters:
a. changes in data and information related to the Appraiser that must be reported by the Appraiser concerned, including:

1. transfer of the Appraiser to another KJPP;

2. holding any position at parties that have obtained permits, approvals, and/or whose statement of registration has become effective, and their affiliations; and/or

3. status as a State Official.
   b. changes in data and information related to the KJPP that must be reported by the leader of the KJPP partners, including:

4. change of KJPP address;

5. change of KJPP establishment deed including if there are changes in partner composition, partner leaders, and/or change of KJPP name;

6. change of KJPP business permit from the Minister of Finance in the event of a change in KJPP name;

7. change of KJPP branches that have obtained permits from the Minister of Finance;

8. change of cooperation with foreign KJPPs or foreign appraisal organizations that have obtained approval from the Minister of Finance;

9. change of cooperation agreements with Appraisers from other KJPPs; and/or

10. closure or opening of KJPPs.
    Second Section
    Prohibitions for Appraisers Conducting Activities in the Capital Market
    Article 27
    Appraisers who are registered with the Financial Services Authority are prohibited from:
    a. holding concurrent positions in any capacity at other KJPPs and/or other capital market support professions registered with the Financial Services Authority; b. holding concurrent positions as State Officials; and/or
    c. using appraiser personnel from other KJPPs when providing professional services.
    Article 28
    In the event an Appraiser holds a concurrent position at a party that has obtained permits, approvals, and/or whose statement of registration has become effective, the Appraiser and/or KJPP are prohibited from providing Valuation services or any services that could cause conflicts of interest against the party where the Appraiser holds a concurrent position and its affiliates.

CHAPTER V
INDEPENDENCE OF APPRAISERS
First Section
Provision of Professional Assignment Services
Article 29
In providing professional services, particularly in providing opinions or Valuations, Appraisers must maintain an independent attitude.
Article 30
An Appraiser is not independent during the professional valuation assignment period if the Appraiser, KJPP, or persons within the KJPP:
a. have direct or indirect material financial interests in the Assignor, such as:

1. investments in the Assignor; or
2. other financial interests in the Assignor, which may cause conflicts of interest;
   b. have work relationships with the Assignor, such as:
3. serving concurrently as Key Employees of the Assignor;
4. having close family members working at the Assignor as Key Employees;
5. having former partners or professional employees of the KJPP who work at the Assignor as Key Employees, except after more than 1 (one) year no longer working at the relevant KJPP; or
6. having partners or professional employees of the KJPP who previously worked at the Assignor as Key Employees within the last 6 (six) months, except if the relevant person does not participate in implementing the professional valuation assignment for the Assignor during the Professional Valuation Assignment period;
   c. have Material Business Relationships directly or indirectly with the Assignor, with Key Employees working at the Assignor, or with major shareholders or controllers of the Assignor;
   d. provide other services to the Assignor that may cause conflicts of interest; or e. provide services or products to the Assignor based on contingent fees or commissions, or receive contingent fees or commissions from the Assignor. Second Section Restrictions on Assignments
   Article 31
   (1) Provision of professional valuation services to an Assignor can only be done by one Appraiser for a maximum of 3 (three) consecutive years calculated from the date of the valuation report on the first Professional Valuation Assignment. (2) An Appraiser can accept a new Professional Valuation Assignment from the Assignor as referred to in paragraph (1) after 1 (one) year without performing professional valuation assignments for that Assignor calculated from the date of the valuation report on the last professional valuation assignment. Third Section Quality Control System
   Article 32
   KJPPs must have a quality control system with an adequate level of assurance that the KJPP or its employees can maintain an independent attitude by considering the size and nature of the practice of the KJPP concerned.
   CHAPTER VI
   TEMPORARY SUSPENSION OF SERVICES IN THE CAPITAL MARKET (TEMPORARY INACTIVE)
   Article 33
   (1) In the event an Appraiser intends to be temporarily inactive for a minimum period of 1 (one) year, the Appraiser must submit a request letter to the Financial Services Authority beforehand stating the period of temporary inactivity. (2) Appraisers subject to administrative sanctions in the form of suspension of the certificate of registration for capital market support professions from the Financial Services Authority cannot submit requests as referred to in paragraph (1). (3) The period of temporary inactivity submitted to the Financial Services Authority is at most 5 (five) years including extensions, or at most until the validity period of the certificate of registration for capital market support professions expires. (4) Appraisers who will extend the period of temporary inactivity must submit a request letter to the Financial Services Authority at the latest 10 (ten) working days before the temporary inactivity period ends, accompanied by reasons. (5) Appraisers who will shorten the period of temporary inactivity must submit a request letter to the Financial Services Authority at the latest 10 (ten) working days before the date of expiration of the new temporary inactivity period, accompanied by reasons. (6) In the event requests as referred to in paragraph (1), paragraph (4), or paragraph (5) are approved by the Financial Services Authority, the certificate of registration for capital market support professions in the name of the relevant Appraiser will be declared temporarily inactive by providing a notification letter. (7) In the event requests as referred to in paragraph (1), paragraph (4), or paragraph (5) are not approved, the Financial Services Authority will provide a notification letter.
   Article 34
   Appraisers with certificates of registration for capital market support professions that are temporarily inactive as referred to in Article 33 paragraph (6):
   a. are prohibited from conducting activities in the capital market; and b. are exempted from obligations as referred to in Article 21 paragraph (1) letter c and letter d until the end of the temporary inactivity period.
   Article 35
   In the event an Appraiser shortens the period of temporary inactivity, as referred to in Article 33 paragraph (5), so that the period of temporary inactivity becomes less than 1 (one) year, the exemption as referred to in Article 34 letter b ceases to apply.
   Article 36
   If an Appraiser with a certificate of registration for capital market support professions that is temporarily inactive as referred to in Article 33 paragraph (6) will resume activities in the capital market, the Appraiser submits:
   a. a request letter to the Financial Services Authority using the format of the Request for Reactivation as stated in the Appendix which is an inseparable part of this Financial Services Authority Regulation; b. photocopies of certificates:
7. Continuing Professional Education annually as regulated in Article 21 paragraph (1) letter b; or
8. Professional Education as regulated in Article 5 letter f obtained at the latest within the last 2 (two) years and legalized by the Appraisers Professional Association, if during that period the relevant Appraiser did not follow Continuing Professional Education annually as regulated in Article 22 paragraph (1) letter b; and
   c. a list of changes in data and information from the Appraiser and/or KJPP accompanied by supporting evidence, if any.
   Article 37
   An Appraiser is considered to have resigned as an Appraiser conducting activities in the capital market if they do not submit a request letter to the Financial Services Authority and do not meet the requirements as referred to in Article 36, within a period of at most 6 (six) months after the temporary inactivity period ends.
   Article 38
   Certificates of registration for capital market support professions in the name of Appraisers who have submitted requests for reactivation and have met the requirements as referred to in Article 36 are declared active again by the Financial Services Authority by providing a notification letter.
   CHAPTER VII
   RESIGNATION OF APPRAISERS AS CAPITAL MARKET SUPPORT PROFESSIONS
   Article 39
   In the event an Appraiser intends to resign as a capital market support profession, the Appraiser must first submit a request letter for cancellation of the certificate of registration for capital market support professions using the format of Request for Cancellation of Certificate of Registration as stated in the Appendix which is an inseparable part of this Financial Services Authority Regulation.
   Article 40
   In the event the Financial Services Authority has approved the request for cancellation of the certificate of registration for capital market support professions:
   a. the certificate of registration for capital market support professions in the name of the relevant Appraiser is cancelled and declared invalid; and b. the relevant Appraiser is prohibited from conducting activities in the capital market since the date of the decision letter on cancellation of the certificate of registration for capital market support professions.
   CHAPTER VIII
   OTHER PROVISIONS
   Article 41
   (1) Appraisers appointed and/or designated as State Officials:
   a. submit notifications regarding appointment as State Officials, as referred to in Article 26 letter a number 3; b. the certificate of registration for capital market support professions in the name of the relevant Appraiser will be declared temporarily inactive by the Financial Services Authority with a notification letter, and the Appraiser is prohibited from conducting activities in the capital market; and
   c. are exempted from obligations as referred to in Article 21 paragraph (1) letter b, letter c, and letter d until the end of the said term of office.
   (2) Appraisers who no longer hold office as State Officials and will resume activities in the capital market, the Appraiser submits:
   a. a notification letter to the Financial Services Authority using the format of Request for Reactivation as stated in the Appendix which is an inseparable part of this Financial Services Authority Regulation; and b. a list of changes in data and information from the Appraiser and/or KJPP accompanied by supporting evidence, if any. (3) Appraisers who resume activities in the capital market as referred to in paragraph (2) must fulfill obligations as referred to in Article 21 paragraph (1) letter b and letter c in the following year. (4) In the event the validity period of the certificate of registration for capital market support professions for Appraisers who no longer hold office as State Officials as referred to in paragraph (2) has expired, submission of the request for reactivation and list of changes in data as referred to in paragraph (2) must be submitted at the latest 90 (ninety) days since the Appraiser no longer holds office as a State Official. (5) The Financial Services Authority issues a new certificate of registration for capital market support professions for Appraisers who have met the provisions as referred to in paragraph (4). (6) The certificate of registration for capital market support professions as referred to in paragraph (5) has the same validity period as the remaining validity period of the certificate of registration for capital market support professions before the Appraiser was declared temporarily inactive by the Financial Services Authority due to appointment as a State Official. (7) To resume activities in the capital market, Appraisers who do not meet the provisions as referred to in paragraph (4) must first obtain a new certificate of registration for capital market support professions by submitting a registration application as referred to in Article 4, Article 5, and Article 6 and documents as referred to in Article 7 and Article 8 to the Financial Services Authority.
   Article 42
   (1) If necessary, the Financial Services Authority may summon and/or examine Appraisers who are currently not conducting activities temporarily in the capital market regarding compliance with legislation in the capital market sector. (2) Appraisers who are currently not conducting activities temporarily in the capital market must fulfill summons and/or undergo examinations by the Financial Services Authority as referred to in paragraph (1).
   Article 43
   (1) In the event the Financial Services Authority has provided an electronic system, submission of registration as referred to in Article 5, addition of the scope of Valuation activities as referred to in Article 9 paragraph (2), requests for re-registration as referred to in Article 10, and/or reporting obligations as referred to in Article 21 paragraph (1) letter c and letter d must be submitted through said electronic system. (2) In the event submission of registration as referred to in Article 5 and addition of the scope of Valuation activities as referred to in Article 9 paragraph (2) is submitted through the electronic system as referred to in paragraph (1), the certificate of registration for capital market support professions as referred to in Article 11 and notification letters as referred to in Article 12 paragraph (1) are established by the Financial Services Authority within 20 (twenty) working days. (3) In the event the electronic system as referred to in paragraph (1) experiences technical disturbances or force majeure events, submission of registration as referred to in Article 5, addition of the scope of Valuation activities as referred to in Article 9 paragraph (2), requests for re-registration as referred to in Article 10, and/or reporting obligations as referred to in Article 21 paragraph (1) letter c and letter d can be done in the form of printed documents.
   Article 44
   (1) In the event an Appraiser no longer meets the requirements as referred to in Article 5, the Appraiser cannot conduct Valuation activities in the capital market field.
   (2) In the event a KJPP no longer meets the requirements as referred to in Article 6, Appraisers at that KJPP cannot conduct Valuation activities in the capital market field.
   Article 45
   Appraisers who cannot conduct Valuation activities in the capital market field due to not meeting the requirements in Article 5 letter g remain obligated to fulfill provisions as referred to in Article 21 paragraph (1) letter b, letter c, and letter d.

CHAPTER IX
SANCTION PROVISIONS
Article 46
(1) Without prejudice to criminal provisions in the capital market field, the Financial Services Authority has the authority to impose administrative sanctions on any party that violates the provisions of this Financial Services Authority Regulation, including parties causing the violation, in the form of:
a. written warnings; b. fines, namely the obligation to pay a certain amount of money;
c. restriction of business activities;
d. suspension of business activities; e. revocation of business licenses; f. cancellation of approvals; and/or g. cancellation of registration.
(2) Administrative sanctions as referred to in paragraph (1) letter b, letter c, letter d, letter e, letter f, or letter g can be imposed with or without prior imposition of administrative sanctions in the form of written warnings as referred to in paragraph (1) letter a. (3) Administrative sanctions in the form of fines as referred to in paragraph (1) letter b can be imposed separately or together with the imposition of administrative sanctions as referred to in paragraph (1) letter c, letter d, letter e, letter f, or letter g.
Article 47
In addition to administrative sanctions as referred to in Article 46 paragraph (1), the Financial Services Authority can take specific actions against any party that violates the provisions of this Financial Services Authority Regulation.
Article 48
The Financial Services Authority can announce the imposition of administrative sanctions as referred to in Article 46 paragraph (1) and specific actions as referred to in Article 47 to the public.
Article 49
Appraisers who do not follow Continuing Professional Education as referred to in Article 21 paragraph (1) letter b for 2 (two) consecutive years are subject to administrative sanctions in the form of suspension of the certificate of registration for capital market support professions for 1 (one) year from the date of establishment, or until the validity period of the certificate of registration for capital market support professions expires, in the event the validity period of the certificate of registration for capital market support professions is less than 1 (one) year.
Article 50
(1) Appraisers declared late in submitting:
a. Periodic Reports of Valuation Activities as referred to in Article 21 paragraph (1) letter c; and/or b. reports of changes in data and information related to Appraisers and/or KJPPs as referred to in Article 21 paragraph (1) letter d, are subject to administrative sanctions in the form of fines of IDR 100,000.00 (one hundred thousand rupiah) per day of delay each, and at most IDR 3,000,000.00 (three million rupiah) per report. (2) Appraisers declared not to have submitted:
a. Periodic Reports of Valuation Activities as referred to in Article 21 paragraph (1) letter c; and/or b. reports of changes and information related to Appraisers and/or KJPPs as referred to in Article 21 paragraph (1) letter d, are subject to administrative sanctions in the form of fines of IDR 5,000,000.00 (five million rupiah) per report each.

(3) In addition to administrative sanctions as referred to in paragraph (2), Appraisers remain obligated to submit reports as referred to in Article 22 paragraph (1) letter c and/or letter d.
Article 51
Appraisers subject to administrative sanctions in the form of suspension of the certificate of registration for capital market support professions, during the suspension period, are exempted from obligations as referred to in Article 21 paragraph (1) letter b, letter c, and letter d.
Article 52
Appraisers subject to administrative sanctions in the form of written warnings 3 (three) times within a period of 2 (two) years are subject to administrative sanctions in the form of suspension of the certificate of registration for capital market support professions for 1 (one) year from the date of establishment, or until the validity period of the certificate of registration for capital market support professions expires, in the event the validity period of the certificate of registration for capital market support professions is less than 1 (one) year.
CHAPTER X
TRANSITIONAL PROVISIONS
Article 53
Requests for registration to become Appraisers that have been submitted to the Financial Services Authority before this Financial Services Authority Regulation takes effect and are still in the process of resolution, continue to be processed based on the provisions of Regulation Number VIII.C.1, appendix of the Decision Letter of the Head of the Capital Market Supervisory Agency and Financial Institutions Number Kep-372/BL/2012 concerning Registration of Appraisers Conducting Activities in the Capital Market.

Article 54
Appraisers who have possessed a certificate of registered profession as a supporting profession in the capital market prior to the implementation of this Financial Services Authority Regulation are required to:
a. submit an application for re-registration to the Financial Services Authority no later than 1 (one) year from the date this Financial Services Authority Regulation is promulgated, using the format of the Re-registration Form as an Appraiser Conducting Activities in the Capital Market as set forth in the Appendix which is an integral part of this Financial Services Authority Regulation, accompanied by supporting documents; and b. fulfill first all obligations based on legislation in the financial services sector and/or decisions of the Financial Services Authority that have not yet been fulfilled.

Article 55
In the event that an Appraiser does not submit an application for re-registration and does not fulfill the obligations as referred to in Article 54, the Appraiser is deemed to have resigned, and the certificate of registered profession as a supporting profession in the capital market in the name of such Appraiser will be cancelled.

Article 56
In the event that an Appraiser has submitted re-registration to the Financial Services Authority as referred to in Article 54, the Financial Services Authority will issue a replacement certificate of registered profession as a supporting profession in the capital market.

Article 57
An Appraiser who has received a Professional Valuation Assignment from the same Assignor before this Financial Services Authority Regulation takes effect shall:
a. continue to be able to perform Professional Valuation Assignments for the Assignor for up to 3 (three) consecutive years; and b. limit the Professional Valuation Assignment of the Appraiser for the following year by referring to this Financial Services Authority Regulation.

CHAPTER XI
CLOSING PROVISIONS

Article 58
At the time this Financial Services Authority Regulation takes effect:

1. Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institutions Number Kep-372/BL/2012 concerning Registration of Appraisers Conducting Activities in the Capital Market together with Regulation Number VIII.C.1 which is its appendix;
2. Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institutions Number Kep-394/BL/2008 concerning Independence of Appraisers Conducting Activities in the Capital Market together with Regulation Number VIII.C.2 which is its appendix; and
3. Financial Services Authority Regulation Number 54/POJK.04/2016 concerning Periodic Reports of Appraiser Activities (State Gazette of the Republic of Indonesia Year 2016 Number 283, Supplement to the State Gazette of the Republic of Indonesia Number 5979),
   are repealed and declared invalid.

Article 59
This Financial Services Authority Regulation takes effect on the date of its promulgation.

A copy of this is consistent with the original Director of Law 1 Department of Law signed Yuliana

For everyone to know, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Determined in Jakarta on 21 December 2017
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY, signed
WIMBOH SANTOSO

Promulgated in Jakarta on 22 December 2017
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 289

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 68 /POJK.04/2017
CONCERNING
APRAISERS CONDUCTING ACTIVITIES IN THE CAPITAL MARKET

I. GENERAL
Appraisers are individuals who carry out Valuation activities in the capital market based on their expertise. Appraisers conducting activities in the capital market must register with the Financial Services Authority by meeting requirements as regulated in legislation governing Appraisers applicable at the Financial Services Authority. Activities of Appraisers in the capital market include, among others, Property Valuation and Business Valuation. The purposes of such Valuations include, among others, transaction purposes, private and public sector financial reporting, debt guaranteeing, state revenue, and other Valuation purposes in accordance with SPI. Based on these activities, the role of Appraisers in the capital market is very important, so Appraisers are required to always act independently, objectively, and professionally to meet the needs of service users and uphold public trust in the capital market sector in particular and other financial services sectors in general. To meet these demands and enhance the independence, objectivity, and professionalism of Appraisers in performing their duties, Appraisers are required to participate in Continuing Professional Education, submit changes to data and information related to Appraisers and/or Public Accounting Firms, and report activities conducted in the capital market sector to the Financial Services Authority.

In light of the above, it is necessary to replace the legislation governing Appraisers conducting activities in the capital market issued prior to the implementation of this Financial Services Authority Regulation, with the intention of supporting the guidance, regulation, and supervision by the Financial Services Authority towards Appraisers, as well as ensuring equal treatment of regulations for other supporting professions in the capital market, to realize orderly, fair, and efficient capital market activities and protect the interests of investors and the community.

II. ARTICLE BY ARTICLE
Article 1
Clear enough.

Article 2
Clear enough.

Article 3
Clear enough.

Article 4
Clear enough.

Article 5
Letter a
Valuer License from the Minister of Finance held in accordance with the scope of valuation activities in the capital market requested.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Clear enough.

Letter f
The determination of material and number of professional credit units from the organization of Professional Education and the submission of participant recapitulation data for Professional Education is carried out based on coordination between the Appraiser Professional Association and the Financial Services Authority.

Letter g
Clear enough.

Letter h
What is meant by “Financial Services Authority” also includes the Capital Market Supervisory Agency and Financial Institutions before the transfer of functions, duties, and authority for regulation and supervision of financial services activities in the capital market sector from the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority based on Law Number 21 of 2011 concerning the Financial Services Authority.

Article 6
Clear enough.

Article 7
Clear enough.

Article 8
Paragraph (1)
Letter a
Number 1
Curriculum vitae and professional assignment data covering at least the name of the assignor, year of Valuation, purpose of Valuation, and type of Valuation, as well as work experience of at least 3 (three) years within the scope of Valuation corresponding to the scope of the Appraiser registration application, along with the position in that job.

Number 2
Clear enough.

Number 3
Clear enough.

Number 4
Clear enough.

Number 5
Clear enough.

Number 6
Photocopy of Professional Education certificate accepted:
Appraiser “X” holds a certificate for Professional Education organized on September 11-15, 2017.
Appraiser “X” submits a registration application and is accepted by the Financial Services Authority on September 14, 2019.
Based on this, the Professional Education certificate requirement for Appraiser “X” is stated to meet the 2 (two) year recent timeframe requirement.

Photocopy of Professional Education certificate rejected:
Appraiser “X” holds a certificate for Professional Education organized on September 11-15, 2017.
Appraiser “X” submits a registration application and is accepted by the Financial Services Authority on September 16, 2019.
Based on this, the Professional Education certificate requirement for Appraiser “X” is stated not to meet the 2 (two) year recent timeframe requirement.

Number 7
Clear enough.

Number 8
Clear enough.

Number 9
Letter a)
Clear enough.

Letter b)
Clear enough.

Letter c)
Clear enough.

Letter d)
Clear enough.

Letter e)
Clear enough.

Letter f)
What is meant by “Financial Services Authority” also includes the Capital Market Supervisory Agency and Financial Institutions before the transfer of functions, duties, and authority for regulation and supervision of financial services activities in the capital market sector from the Capital Market Supervisory Agency and Financial Institutions to the Financial Services Authority based on Law Number 21 of 2011 concerning the Financial Services Authority.

Letter b
Clear enough.

Paragraph (2)
Clear enough.

Article 9
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Curriculum vitae and professional assignment data covering at least the name of the assignor, year of Valuation, purpose of Valuation, and type of Valuation, as well as work experience of at least 3 (three) years within the scope of Valuation corresponding to the classification of the registration application, along with the position in that job.

Letter d
Clear enough.

Letter e
Clear enough.

Article 10
Clear enough.

Article 11
Clear enough.

Article 12
Clear enough.

Article 13
Clear enough.

Article 14
Clear enough.

Article 15
Paragraph (1)
The calculation of the validity period of the Certificate of Registered Profession as a Supporting Profession in the Capital Market for 5 (five) years mentioned herein includes the period during which the Appraiser temporarily suspended providing services in the capital market (temporarily inactive) as referred to in Article 33.

Paragraph (2)
What is meant by “all obligations based on legislation in the financial services sector and/or decisions of the Financial Services Authority that have not yet been fulfilled”, among others:

1. obligation to pay fines for administrative sanctions that have not been fulfilled;
2. obligation to fulfill Continuing Professional Education;
3. obligation for Periodic Report of Appraiser Activities; and/or
4. obligation to pay levies.

Paragraph (3)
Clear enough.

Article 16
Clear enough.

Article 17
Clear enough.

Article 18
Clear enough.

Article 19
Clear enough.

Article 20
Clear enough.

Article 21
Paragraph (1)
Letter a
Clear enough.

Letter b
The determination of material, number of professional credit points, and submission of participant recapitulation data for the organization of Continuing Professional Education is carried out based on coordination between the Appraiser Professional Association and the Financial Services Authority.

Letter c
Activities reported in the Periodic Report of Appraiser Activities are only activities conducted in the capital market field. In the event that there are no activities in the capital market field in the reporting year, then in the Periodic Report of Appraiser Activities it is explained that the Appraiser had no activities in the capital market field in that year.

Letter d
Changes to data and information from Appraisers and/or Public Accounting Firms are reported after approval or notification of data changes from the Ministry of Finance is received by the Appraiser.

Letter e
Clear enough.

Letter f
Clear enough.

Letter g
Clear enough.

Letter h
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
In the event that January 15, which is the deadline for submitting the Periodic Report of Appraiser Activities, falls on a Saturday, the Appraiser is required to submit said report no later than 1 (one) working day thereafter, namely Monday. In the event that the Appraiser submits the Periodic Report of Appraiser Activities past the subsequent working day deadline, namely Monday, for example submitted on Wednesday, then the calculation of late submission of the report is counted starting from Tuesday. Thus, the Appraiser experiences a delay in submitting the Periodic Report of Appraiser Activities for 2 (two) days.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Article 22
Clear enough.

Article 23
Clear enough.

Article 24
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Property Valuation Report is a written report created by a property appraiser containing the property appraiser's opinion regarding the Valuation Object and presenting information about the Valuation process.

Letter b
Business Valuation Report is a written report created by a business appraiser containing the business appraiser's opinion regarding the Valuation Object and presenting information about the Valuation process.

Article 25
Clear enough.

Article 26
Clear enough.

Article 27
Clear enough.

Article 28
The definition of affiliation refers to the definition of affiliation in the Capital Market Law.

Article 29
Clear enough.

Article 30
The period of Professional Valuation Assignment starts from the beginning of fieldwork or the signing of the Professional Valuation Assignment, whichever is earlier.
The Professional Valuation Assignment period ends when the Valuation Report signed by the Appraiser is delivered to the Assignor.
Insiders of the Public Accounting Firm are:
a. Persons included in the Professional Valuation Assignment team, namely:

1. all partners, leaders, professional employees, and/or experts participating in the Valuation assignment;
2. parties conducting further review or acting as second partner (and subsequently) during the Professional Valuation Assignment period; or
3. other Appraisers as consortium members in the Professional Valuation Assignment;
   b. Persons included in the chain of execution or command, namely all persons who:
4. supervise or have direct management responsibility for the Professional Valuation Assignment;
5. evaluate performance or recommend compensation for partners and members of the Professional Valuation Assignment team; or
6. supervise the implementation of quality control or other supervision over the Professional Valuation Assignment; or
   c. Any partner, leader, professional employee, and/or other expert from the Public Accounting Firm who has performed other Professional Valuation Assignments for the Assignor.

Letter a
Clear enough.

Letter b
Number 1
Clear enough.

Number 2
Close family members are wife or husband, parents, children whether dependent or non-dependent, and siblings.

Number 3
Clear enough.

Number 4
Clear enough.

Letter c
Business relationships in this letter do not include business relationships in cases where the Appraiser, Public Accounting Firm, or insider of the Public Accounting Firm provides Valuation services or is a consumer of client goods or products/services in order to support routine activities.

Letter d
Clear enough.

Letter e
Contingent fee is a fee established for the execution of a professional service that will only be charged if there are specific findings or results where the amount of the fee depends on those specific findings or results, unless the fee is established by a court or regulatory body, or in the case of taxation, if the basis for establishment is the result of legal settlement or findings of a regulatory body.

Article 31
Paragraph (1)
Example:
PT ABC uses professional Valuation services from Appraiser “X” starting from September 2017, then PT ABC can only use professional Valuation services from Appraiser “X” consecutively for the years 2017, 2018, up to 2019.

Paragraph (2)
Example:
PT ABC has used professional Valuation services from Appraiser “X” for the years 2017, 2018, and 2019, then PT ABC can only use professional Valuation services from Appraiser “X” again starting from January 2021.

Article 32
Clear enough.

Article 33
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Example:
Appraiser “X” has applied to suspend providing services in the capital market temporarily to the Financial Services Authority for 3 (three) years from June 1, 2017 to June 1, 2020.
If Appraiser “X” wants to extend the temporary inactive period by one year until June 1, 2021, then Appraiser “X” must submit a letter of request to the Financial Services Authority no later than May 18, 2020 (10 working days before June 1, 2020).

Paragraph (5)
Example:
Appraiser “X” has applied to suspend providing services in the capital market temporarily to the Financial Services Authority for 3 (three) years from June 1, 2017 to June 1, 2020.
If Appraiser “X” wants to shorten the temporary inactive period to only 1 (one) year until June 1, 2019, then Appraiser “X” must submit a letter of request to the Financial Services Authority no later than May 18, 2019 (10 working days before June 1, 2019).

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Article 34
Clear enough.

Article 35
Clear enough.

Article 36
Clear enough.

Article 37
Clear enough.

Article 38
Clear enough.

Article 39
Clear enough.

Article 40
Clear enough.

Article 41
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Appraiser A receives a certificate of registered profession as a supporting profession in the capital market in January 2015.
The certificate of registered profession as a supporting profession in the capital market is valid until January 2020.
In August 2018, Appraiser A was appointed as a State Official and submitted notification regarding appointment or designation as a State Official to the Financial Services Authority, which was subsequently declared temporarily inactive by the Financial Services Authority when the remaining validity period of the certificate of registered profession as a supporting profession in the capital market was still 1 year and 5 months. Appraiser A is no longer a State Official in August 2023 and applies for reactivation in September 2023 (less than 90 (ninety) days since Appraiser A ceased to hold office as a State Official). The Financial Services Authority will issue a new certificate of registered profession as a supporting profession in the capital market to Appraiser A with a validity period until February 2025.

Paragraph (7)
Clear enough.

Article 42
Clear enough.

Article 43
Clear enough.

Article 44
Clear enough.

Article 45
Clear enough.

Article 46
Clear enough.

Article 47
Clear enough.

Article 48
Clear enough.

Article 49
Clear enough.

Article 50
Clear enough.

Article 51
Clear enough.

Article 52
Example:
Appraiser is subject to sanctions in the form of a written warning as follows:

1. First time on April 15, 2017;
2. Second time on November 30, 2018; and
3. Third time on April 14, 2019.

Thus, the Appraiser has received 3 (three) sanctions in the form of written warnings within a period of 2 (two) years.

Article 53
Clear enough.

Article 54
Letter a
Clear enough.

Letter b
What is meant by “all obligations based on legislation in the financial services sector and/or decisions of the Financial Services Authority that have not yet been fulfilled”, among others:

1. obligation to pay fines for administrative sanctions that have not been fulfilled;
2. obligation to fulfill Continuing Professional Education;
3. obligation for Periodic Report of Appraiser Activities; and/or
4. obligation to pay levies.

Article 55
Clear enough.

Article 56
Clear enough.

Article 57
Letter a
This Financial Services Authority Regulation was promulgated in 2017. Appraiser “X” has received Professional Valuation Assignments from PT. ABC Tbk. in 2017 and 2018.
Appraiser “X” can still perform Professional Valuation Assignments for PT. ABC Tbk. in 2019.

Letter b
This Financial Services Authority Regulation was promulgated in 2017. Appraiser “X” has received Professional Valuation Assignments from PT. ABC Tbk. in 2014, 2015, and 2016.
Then Appraiser “X” can perform Professional Valuation Assignments for PT. ABC Tbk. again in 2018.

Article 58
Clear enough.

Article 59
Clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6157