Regulation of the Financial Services Authority of the Republic of Indonesia Number 65/POJK.04/2020 Concerning the Return of Illegal Profits and Investor Loss Compensation Funds in the Capital Market

COPY
REGULATION OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 65/POJK.04/2020 CONCERNING THE RETURN OF ILLEGAL PROFITS AND INVESTOR LOSS COMPENSATION FUNDS IN THE CAPITAL MARKET BY THE GRACE OF GOD THE ALMIGHTY THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to carry out the functions, duties, and authorities for regulation and supervision of activities in the financial services sector and to realize fair financial services activities capable of protecting consumer and public interests, in accordance with Article 9 letter d of Law Number 21 of 2011 concerning the Financial Services Authority, the Financial Services Authority has the authority to issue written orders in accordance with its regulatory powers and impose penalties on parties in the financial services sector in accordance with its supervisory powers; b. that one form of written order in the capital market sector is given for the return of illegal profits to the party that committed and/or the party that caused the violation of capital market legislation;
c. that the written order as referred to in letter b is one of the efforts by the Financial Services Authority to carry out remedial action that can be used as the basis for the formation of investor loss compensation funds to be returned to injured investors or for the development of the capital market industry;
d. that based on the considerations as referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning the Return of Illegal Profits and Investor Loss Compensation Funds 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);
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);

DECIDING:
Decree: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE RETURN OF ILLEGAL PROFITS AND INVESTOR LOSS COMPENSATION FUNDS IN THE CAPITAL MARKET.

CHAPTER I
GENERAL PROVISIONS

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

1. Party is an individual, company, joint venture, association, or organized group.
2. Return of Illegal Profits is a written order from the Financial Services Authority to return profits obtained or losses avoided illegally by the Party that committed and/or the Party that caused the violation of capital market legislation.
3. Fund Account Provider is a Party appointed by the Financial Services Authority to provide a fund account for the payment of Return of Illegal Profits and the distribution of Investor Loss Compensation Funds.
4. Investor Loss Compensation Fund is funds collected from the imposition of Return of Illegal Profits, intended to be administered and distributed to injured investors who meet the requirements to file claims.
5. Administrator is a Party appointed by the Financial Services Authority to administer and distribute Investor Loss Compensation Funds.
6. Distribution Plan is the plan for administering and distributing Investor Loss Compensation Funds to injured investors who have filed claims within a specified period, prepared by the Administrator and approved by the Financial Services Authority.

CHAPTER II
DETERMINATION AND PAYMENT OF RETURN OF ILLEGAL PROFITS

Section One
Determination of Return of Illegal Profits

Article 2
(1) The Financial Services Authority has the authority to impose Return of Illegal Profits on the Party that committed and/or the Party that caused the violation of capital market legislation. (2) The imposition of Return of Illegal Profits as referred to in paragraph (1) is determined by the Financial Services Authority in the form of a written order. (3) The Financial Services Authority may announce the imposition of Return of Illegal Profits as referred to in paragraph (1) to the public through the Financial Services Authority website and/or mass media.

Article 3
(1) The determination of Return of Illegal Profits as referred to in Article 2 paragraph (2) is imposed simultaneously with the imposition of administrative sanctions. (2) The determination of Return of Illegal Profits as referred to in paragraph (1) must include at least:
a. the capital market legislation violated; b. the time the violation occurred;
c. a summary of the violation; and
d. the amount of Return of Illegal Profits.

Section Two
Payment and Collection of Return of Illegal Profits

Article 4
(1) For the payment of Return of Illegal Profits, the Financial Services Authority appoints a Fund Account Provider.
(2) The appointment of the Fund Account Provider as referred to in paragraph (1) is done simultaneously with the decision to impose Return of Illegal Profits.

Article 5
(1) The Party subject to Return of Illegal Profits is required to pay the Return of Illegal Profits to the Financial Services Authority no later than 30 (thirty) days after receiving the determination of Return of Illegal Profits. (2) The Return of Illegal Profits paid as referred to in paragraph (1) does not constitute income of the Financial Services Authority and cannot be used for the operational activities of the Financial Services Authority. (3) Payment of Return of Illegal Profits is made through the fund account provided by the Fund Account Provider. (4) In the event that the Party subject to Return of Illegal Profits does not pay within the period as referred to in paragraph (1), the Financial Services Authority issues a first warning letter in the form of an order to pay Return of Illegal Profits no later than 30 (thirty) days after the expiration of the payment period for Return of Illegal Profits. (5) In the event that the Party subject to Return of Illegal Profits does not pay within the period as referred to in paragraph (4), the Financial Services Authority issues a second warning letter in the form of an order to pay Return of Illegal Profits no later than 30 (thirty) days after the expiration of the first warning letter. (6) Further provisions regarding the procedure for payment of Return of Illegal Profits as referred to in paragraph (1) and paragraph (3) are determined by the Financial Services Authority.

Article 6
(1) In providing the fund account as referred to in Article 5 paragraph (3), the Fund Account Provider must meet the following provisions:
a. the opening of the fund account is done for each case of violation of capital market legislation subject to Return of Illegal Profits; b. coordinate with the Administrator in the event that Investor Loss Compensation Funds have been formed; and
c. submit reports on the administration and closure of the fund account to the Financial Services Authority.
(2) Funds paid by the Party subject to Return of Illegal Profits to the fund account as referred to in Article 5 paragraph (3) do not belong to the Fund Account Provider. (3) Further provisions regarding the opening of fund accounts, coordination, and submission of reports as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 7
(1) In the event that the Party subject to Return of Illegal Profits cannot make payment through the fund account as referred to in Article 5 paragraph (3), the Party subject to Return of Illegal Profits may make payment using fixed assets. (2) Payment of Return of Illegal Profits using fixed assets as referred to in paragraph (1) must meet at least the following provisions:
a. fixed assets consist of:

1. land;
2. land and buildings; and/or
3. motor vehicles; and
   b. the transfer of fixed assets as referred to in letter a must be accompanied by valid ownership documents and a letter of substitution power of attorney to the Financial Services Authority for the release of such assets. (3) Fixed assets as referred to in paragraph (2) must meet the following provisions:
   a. have valid ownership documents; b. the location of the fixed assets is within the territory of the Republic of Indonesia;
   c. are not in legal dispute;
   d. are not currently pledged or mortgaged; e. have no tax arrears; and f. are not under the control of other parties for any reason.
   (4) The Financial Services Authority has the authority to reject fixed assets submitted by the Party subject to Return of Illegal Profits as referred to in paragraph (1). (5) The release of assets as referred to in paragraph (2) letter b can be done through an auction mechanism. (6) Further provisions regarding the release of assets through auction as referred to in paragraph (5) are determined by the Financial Services Authority.

CHAPTER III
BLOCKING, LIQUIDATION, TRANSFER OF ACCOUNTS, AND LEGAL REMEDIES

Article 8
(1) The Financial Services Authority has the authority to order the Settlement and Custody Institution and/or financial service institutions to block Securities accounts, block other accounts, and/or transfer assets from the Party subject to Return of Illegal Profits. (2) The order to block Securities accounts and/or other accounts as referred to in paragraph (1) can be done at the time and/or after the determination of Return of Illegal Profits. (3) Assets in Securities accounts and/or other accounts as referred to in paragraph (1) can only be used for the settlement of Return of Illegal Profits obligations. (4) In the event that the Party subject to Return of Illegal Profits has not made payment until the specified period as referred to in Article 5 paragraph (5), the Financial Services Authority orders the Party subject to Return of Illegal Profits to liquidate assets in blocked Securities accounts and/or other accounts for the settlement of Return of Illegal Profits obligations. (5) In the event that the Party subject to Return of Illegal Profits refuses to liquidate assets in Securities accounts and/or other accounts as referred to in paragraph (4), the Financial Services Authority has the authority to order the Settlement and Custody Institution and/or financial service institutions to liquidate and/or transfer the said assets to the fund account provided by the Fund Account Provider. (6) Orders:
a. blocking Securities accounts, blocking other accounts, and/or transfer of assets as referred to in paragraph (1); b. liquidation of assets as referred to in paragraph (4); and
c. liquidation and/or transfer of assets as referred to in paragraph (5),
are determined by the Financial Services Authority in the form of a written order.

Article 9
(1) In the event that the Party subject to Return of Illegal Profits does not make payment of the entire amount of Return of Illegal Profits as referred to in Article 5, Article 7, and/or Article 8, the Financial Services Authority may take actions:
a. process further to the investigation stage in accordance with the provisions of the Law concerning the Financial Services Authority; b. file a civil lawsuit in accordance with applicable regulations; and/or
c. file a petition for a bankruptcy declaration in accordance with legislation concerning bankruptcy and suspension of debt payment obligations.
(2) Further provisions regarding the implementation of actions as referred to in paragraph (1) are determined by the Financial Services Authority.

CHAPTER IV
INVESTOR LOSS COMPENSATION FUNDS

Section One
Formation of Investor Loss Compensation Funds

Article 10
(1) In the event that funds collected from the imposition of Return of Illegal Profits are feasible, the Financial Services Authority may form Investor Loss Compensation Funds. (2) Funds collected from the imposition of Return of Illegal Profits are considered feasible as referred to in paragraph (1) by considering:
a. the amount of Return of Illegal Profits collected; b. the operational cost plan for the implementation of Investor Loss Compensation Funds; and
c. initial identification of the existence or non-existence of injured investors.
(3) In the event that funds collected from the imposition of Return of Illegal Profits are declared not feasible to form Investor Loss Compensation Funds, such funds are used for the development of the capital market industry. (4) Investor Loss Compensation Funds are administered by the Administrator and do not belong to the Administrator. (5) Investor Loss Compensation Funds as referred to in paragraph (1) are formed for each case of violation of capital market legislation subject to Return of Illegal Profits.

Article 11
The Financial Services Authority announces the formation or non-formation of Investor Loss Compensation Funds as referred to in Article 10 to the public through the Financial Services Authority website and/or mass media.

Section Two
Appointment of Administrator

Article 12
(1) The Financial Services Authority appoints the Administrator simultaneously with the formation of Investor Loss Compensation Funds.
(2) In the event that:
a. the Administrator has fulfilled all obligations and Investor Loss Compensation Funds have been dissolved; b. the Administrator resigns;
c. the Administrator dies, for individual Administrators;
d. the business license, approval, or registration certificate held by the Administrator is revoked by the Financial Services Authority; or e. the Administrator violates capital market legislation, the Financial Services Authority has the authority to dismiss the Administrator. (3) In the event that the Administrator is dismissed as referred to in paragraph (2) letters b, d, or e, the Administrator must immediately submit documents for the administration and distribution of Investor Loss Compensation Funds to the Financial Services Authority no later than 2 (two) working days after the dismissal is determined. (4) In the event that the Administrator is dismissed as referred to in paragraph (2) letters b, c, d, or e, the Financial Services Authority immediately appoints a replacement Administrator.

Section Three
Requirements for Administrator

Article 13
(1) Those who can be appointed as Administrators are individuals or legal entities.
(2) Individuals who can be appointed as Administrators as referred to in paragraph (1) must at least meet the following requirements:
a. have an individual license or Registration Certificate in the capital market sector from the Financial Services Authority, or have expertise and experience in institutions operating in the capital market sector; b. do not have a conflict of interest with the Party subject to Return of Illegal Profits by the Financial Services Authority; and
c. are not employees of the Financial Services Authority.
(3) Legal entities that can be appointed as Administrators as referred to in paragraph (1) are institutions that have business licenses, approvals, or registrations in the capital market sector from the Financial Services Authority and do not have a conflict of interest with the Party subject to Return of Illegal Profits by the Financial Services Authority.

Section Four
Rights, Obligations, and Authorities of Administrator

Article 14
(1) Administrators are entitled to service fees for the administration and distribution of Investor Loss Compensation Funds.
(2) The amount of service fees as referred to in paragraph (1) is determined by the Financial Services Authority based on the Administrator's proposal in the Distribution Plan, considering at least:
a. the fairness of the service fee amount; b. the complexity of distributing Investor Loss Compensation Funds; and
c. the amount of funds collected in the Investor Loss Compensation Funds.
(3) All costs arising from administration and distribution activities are charged to the Investor Loss Compensation Funds.
(4) Provisions regarding the implementation of payment of service fees as referred to in paragraph (1) and operational activity costs as referred to in paragraph (3) are determined by the Financial Services Authority.

Article 15
Administrators have the following obligations:
a. recommend to the Financial Services Authority regarding the criteria for investors eligible to file claims; b. ensure that injured investors who file claims have not received compensation from the Party subject to Return of Illegal Profits for losses suffered related to the same violation of capital market legislation;
c. administer Investor Loss Compensation Funds;
d. prepare the Distribution Plan; e. distribute Investor Loss Compensation Funds; f. create a website regarding Investor Loss Compensation Funds; g. maintain the confidentiality of data related to Investor Loss Compensation Funds obtained from the Financial Services Authority, investors filing claims, and other parties; h. submit reports to the Financial Services Authority;
i. coordinate with the Fund Account Provider in the implementation of administration and distribution of Investor Loss Compensation Funds; and
j. carry out other matters determined by the Financial Services Authority.

Article 16
(1) Administrators may request data, information, and supporting documents from related Parties for the preparation of the Distribution Plan and verification of claims from injured investors. (2) In preparing the Distribution Plan as referred to in Article 15 letter d, Administrators may appoint experts. (3) Costs arising from the appointment of experts as referred to in paragraph (2) are included in the administration and distribution costs of Investor Loss Compensation Funds.

Section Five
Distribution Plan

Article 17
The Distribution Plan as referred to in Article 15 letter d must contain at least:
a. the background of the Investor Loss Compensation Funds; b. criteria for investors eligible to file claims;
c. procedures for filing claims for Investor Loss Compensation Funds;
d. claim submission period with provisions of at least 21 (twenty-one) days and at most 90 (ninety) days; e. calculation of actual investor losses; f. procedures for distributing Investor Loss Compensation Funds; and g. administration and distribution costs of Investor Loss Compensation Funds.

Article 18
(1) The Administrator submits the Distribution Plan as referred to in Article 17 and supporting documents to the Financial Services Authority no later than 21 (twenty-one) working days after the Administrator is appointed by the Financial Services Authority. (2) The Financial Services Authority may:
a. approve; or b. approve with changes, the Distribution Plan submitted by the Administrator to the Financial Services Authority as referred to in paragraph (1). (3) In the event that the Financial Services Authority approves the Distribution Plan as referred to in paragraph (2) letter a, the Administrator must announce information required regarding the Distribution Plan on the Investor Loss Compensation Funds website no later than 2 (two) working days after the Distribution Plan is approved by the Financial Services Authority. (4) In the event that the Financial Services Authority approves with changes to the Distribution Plan as referred to in paragraph (2) letter b, the Administrator must adjust and resubmit the Distribution Plan to the Financial Services Authority no later than 5 (five) working days from receiving the notification of changes from the Financial Services Authority.

Section Six
Investor Loss Compensation Funds Website

Article 19
(1) The Administrator creates the website as referred to in Article 15 letter f no later than 21 (twenty-one) working days after the Administrator is appointed by the Financial Services Authority. (2) The website as referred to in paragraph (1) is intended for each Investor Loss Compensation Fund and is separate from other websites owned by the Administrator. (3) The website must contain at least the following information:
a. the case underlying the formation of the Investor Loss Compensation Funds; b. criteria for investors eligible to file claims;
c. claim submission period;
d. procedures for filing claims; and e. progress of the distribution of Investor Loss Compensation Funds in the form of the total amount of Investor Loss Compensation Funds distributed, as well as the number of investors who filed claims and have received Investor Loss Compensation Funds. (4) Further provisions regarding the criteria for the website as referred to in paragraph (1) are determined by the Financial Services Authority.

Section Seven
Filing Claims, Claim Payments, and Distribution of Investor Loss Compensation Funds

Article 20
(1) Investors who meet the criteria as referred to in Article 19 paragraph (3) letter b are entitled to file claims for Investor Loss Compensation Funds within the period specified by the Administrator as referred to in Article 19 paragraph (3) letter c. (2) In the event that investors file claims for Investor Loss Compensation Funds outside the period specified by the Administrator as referred to in paragraph (1), the investor's right to file claims for Investor Loss Compensation Funds is forfeited.

Article 21
(1) In the event that the Administrator receives claims from investors, the Administrator must verify investor claims.
(2) The Administrator must complete the verification of investor claims as referred to in paragraph (1) no later than 30 (thirty) days after the expiration of the claim submission period by investors.

Article 22
(1) The Administrator creates a plan for investor claim payments based on the verification results as referred to in Article 21 paragraph (2) and submits it to the Financial Services Authority no later than 5 (five) working days after completing verification to obtain approval. (2) In the event that the investor claim payment plan has been approved by the Financial Services Authority, the Administrator gives instructions to the Fund Account Provider to make payments of Investor Loss Compensation Funds to investors. (3) Payment of Investor Loss Compensation Funds as referred to in paragraph (2) is done by transferring from the fund account provided by the Fund Account Provider to the respective fund accounts of each investor. (4) The Fund Account Provider transfers Investor Loss Compensation Funds as referred to in paragraph (3) no later than 3 (three) working days after receiving instructions from the Administrator.

Article 23
The distribution of Investor Loss Compensation Funds to injured investors is carried out under the following provisions:
a. if the amount of Investor Loss Compensation Funds collected is greater than the amount of claims filed by injured investors, the distribution of Investor Loss Compensation Funds is done according to the amount of claims filed by each injured investor; b. if the amount of Investor Loss Compensation Funds collected is smaller than the amount of claims filed by injured investors, the distribution of Investor Loss Compensation Funds is done proportionally; or
c. if after distributing Investor Loss Compensation Funds to all injured investors there is still a remaining Investor Loss Compensation Fund, the remaining Investor Loss Compensation Funds are used for the development of the capital market industry.

Article 24
(1) Unfeasible funds as referred to in Article 10 paragraph (3) and the remaining Investor Loss Compensation Funds as referred to in Article 23 letter c are not revenues of the Financial Services Authority and cannot be used for the operational activities of the Financial Services Authority. (2) The Financial Services Authority appoints other Parties to manage and administer the unfeasible funds and the remaining Investor Loss Compensation Funds as referred to in paragraph (1) solely for the interest of capital market industry development. (3) Further provisions regarding the administration of funds for the interest of capital market industry development shall be determined by the Financial Services Authority.

Eighth Section
Administrator's Report

Article 25
(1) The Administrator's report to the Financial Services Authority as referred to in Article 15 letter h consists of:
a. monthly activity reports; b. incident reports; and
c. final reports.
(2) The monthly activity report as referred to in paragraph (1) letter a must be submitted to the Financial Services Authority no later than the 12th of the following month. (3) The incident report as referred to in paragraph (1) letter b must be submitted to the Financial Services Authority no later than 2 (two) working days after the knowledge of material information or facts that may affect the administration or distribution of the Investor Loss Compensation Funds. (4) The final report as referred to in paragraph (1) letter c contains at least:
a. a list of investors who have filed claims; b. a list of Investor Loss Compensation Funds that have been distributed to investors;
c. operational costs of the Investor Loss Compensation Funds that have been incurred; and
d. the amount of remaining Investor Loss Compensation Funds, if there are remaining Investor Loss Compensation Funds.
(5) The final report as referred to in paragraph (1) letter c must be submitted to the Financial Services Authority, accompanied by all documents regarding the administration and distribution of the Investor Loss Compensation Funds, no later than 21 (twenty-one) working days after the completion of the distribution of the Investor Loss Compensation Funds. (6) In the event that the deadline for submitting the report as referred to in paragraph (2) falls on a Saturday, Sunday, or public holiday, the report must be submitted on the next working day.

Ninth Section
Closure of Accounts and Website of the Investor Loss Compensation Fund

Article 26
(1) In the event that the Financial Services Authority has no further responses to the final report submitted by the Administrator, the Financial Services Authority orders the Fund Account Provider to close the fund accounts. (2) The Fund Account Provider must close the fund accounts no later than 3 (three) working days after receiving the order from the Financial Services Authority as referred to in paragraph (1). (3) The Administrator must announce the closure of the fund accounts on the website of the Investor Loss Compensation Fund.

Article 27
(1) The Administrator must close the website of the Investor Loss Compensation Fund no later than 3 (three) working days after the Financial Services Authority orders the Administrator to close the website of the Investor Loss Compensation Fund. (2) In the event that the closure of the website of the Investor Loss Compensation Fund as referred to in paragraph (1) has been carried out, the obligations of the Administrator are deemed completed.

Tenth Section
Dismissal of Administrator and Dissolution of the Investor Loss Compensation Fund

Article 28
In the event that the obligations of the Administrator have been completed, the Financial Services Authority dismisses the Administrator and dissolves the Investor Loss Compensation Fund.

CHAPTER V
CLOSING PROVISIONS

Article 29
This Financial Services Authority Regulation shall come into force 6 (six) months after the date of its promulgation.

This copy is in accordance with the original
Acting Director of Legal Affairs 1
Legal Department signed
Wiwit Puspasari

To ensure that everyone knows, 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 29 December 2020 CHAIRMAN OF THE COMMISSIONERS BOARD FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed WIMBOH SANTOSO

Promulgated in Jakarta on 30 December 2020
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2020 NUMBER 312

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 65 /POJK.04/2020
ABOUT
RETURN OF ILLEGAL PROFITS AND INVESTOR LOSS COMPENSATION FUND IN THE CAPITAL MARKET SECTOR

I. GENERAL
The Financial Services Authority, based on Law Number 21 of 2011 concerning the Financial Services Authority, is an independent institution that has objectives including realizing fair financial service activities and being able to protect the interests of consumers and the public. In efforts to realize these objectives, the Financial Services Authority has functions, duties, and authorities for regulation and supervision of activities in the financial service sector. One of the implementations of the functions, duties, and authorities of the Financial Services Authority in regulation and supervision is to establish regulations regarding written orders in accordance with regulatory authority and to impose written orders on parties in the financial service sector in accordance with supervisory authority. One of the efforts that need to be made to increase effectiveness and justice in law enforcement in the capital market sector is through the application of Return of Illegal Profits (Disgorgement). Return of Illegal Profits is carried out so that Parties who commit violations cannot enjoy profits obtained illegally.

To ensure that Parties who commit violations cannot enjoy profits obtained illegally through the transfer or liquidation of their assets held at financial service institutions, the Financial Services Authority has the authority to issue written orders in the form of blocking requests to the aforementioned financial service institutions and written orders in the form of transfers and liquidation of assets to the Parties who commit violations and financial service institutions. Furthermore, funds collected from the imposition of Return of Illegal Profits can be used to provide compensation for losses to victims of violations and/or for the development of the capital market industry. Through the imposition of Return of Illegal Profits on Parties who commit and/or cause the aforementioned violations, the Financial Services Authority can take remedial action by forming an Investor Loss Compensation Fund (Disgorgement Fund) which will be returned to investors who suffer losses. With the regulation regarding the Return of Illegal Profits and the Investor Loss Compensation Fund mentioned above, it is expected to increase investor protection and confidence in investing in the capital market. Based on the above considerations, the Financial Services Authority needs to establish a Financial Services Authority Regulation regarding the Return of Illegal Profits and the Investor Loss Compensation Fund in the capital market sector.

II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.

Article 2
Paragraph (1)
Sufficiently clear.
Paragraph (2)
What is meant by "written order" is a written order to carry out or not carry out certain activities to fulfill provisions of legislation in the financial service sector and/or to prevent and reduce losses to Consumers, the public, and the financial service sector. Paragraph (3) Sufficiently clear.

Article 3
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Sufficiently clear.
Letter d
The amount of Return of Illegal Profits includes, among others, the return of investment, if there is a return of investment.

Article 4
Sufficiently clear.

Article 5
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
What is meant by "payment of Return of Illegal Profits is made through fund accounts" includes, among others, payment by depositing funds and transfers through fund accounts provided by the Fund Account Provider. Paragraph (4) Sufficiently clear. Paragraph (5) Sufficiently clear. Paragraph (6) Sufficiently clear.

Article 6
Sufficiently clear.

Article 7
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
The auction mechanism can be carried out through the State Property Service Office and Auction or Class II auction halls/auction officials.
Paragraph (6)
Sufficiently clear.

Article 8
Paragraph (1)
What is meant by "other accounts" includes, among others, financial accounts at banks, insurance companies, pension funds, and other financial service institutions. Paragraph (2) Sufficiently clear. Paragraph (3) Sufficiently clear. Paragraph (4) Sufficiently clear. Paragraph (5) Sufficiently clear. Paragraph (6) Sufficiently clear.

Article 9
Sufficiently clear.

Article 10
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
What is meant by "development of the capital market industry" includes, among others, socialization, training, and seminars in the field of capital markets.
Paragraph (4)
Sufficiently clear.
Paragraph (5)
Sufficiently clear.

Article 11
Sufficiently clear.

Article 12
Sufficiently clear.

Article 13
Sufficiently clear.

Article 14
Sufficiently clear.

Article 15
Letter a
Sufficiently clear.
Letter b
Compensation receipts directly from the Party subject to Return of Illegal Profits or through other legal efforts.
Letter c
Sufficiently clear.
Letter d
Sufficiently clear.
Letter f
Sufficiently clear.
Letter g
Sufficiently clear.
Letter h
Sufficiently clear.
Letter i
Sufficiently clear.
Letter j
What is meant by "other matters" includes, among others, coordination in the implementation of fixed asset auctions.

Article 16
Paragraph (1)
What is meant by "Related Parties" includes, among others, securities companies, stock exchanges, and/or depository and clearing institutions.
Paragraph (2)
The appointment of experts mentioned is, among others, to calculate investor losses.
Paragraph (3)
Sufficiently clear.

Article 17
Letter a
Sufficiently clear.
Letter b
Sufficiently clear.
Letter c
Sufficiently clear.
Letter d
Sufficiently clear.
Letter e
What is meant by "actual losses" is losses that have been realized by investors.
Letter f
Sufficiently clear.
Letter 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
Sufficiently clear.

Article 24
Sufficiently clear.

Article 25
Paragraph (1)
Letter a
Monthly activity reports contain activities carried out by the Administrator related to the administration and distribution of the Investor Loss Compensation Funds during the current month period. Letter b Sufficiently clear. Letter c Sufficiently clear. Paragraph (2) Sufficiently clear. Paragraph (3) Sufficiently clear. Paragraph (4) Letter a Information related to the list of investors reported includes, among others, name, address, identity number, bank account number, and Unique Investor Identity Number, if there is a unique investor identity number. Letter b Sufficiently clear. Letter c Sufficiently clear. Letter d Sufficiently clear. Paragraph (5) Sufficiently clear. Paragraph (6) Sufficiently clear.

Article 26
Sufficiently clear.

Article 27
Sufficiently clear.

Article 28
Sufficiently clear.

Article 29
Sufficiently clear.

SUPPLEMENTARY STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6611