Regulation of the Financial Services Authority of the Republic of Indonesia Number 16 of 2024 concerning Supervision of PT Sarana Multi Infrastruktur (Persero)

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 16 OF 2024
CONCERNING
SUPERVISION OF PT SARANA MULTI INFRASTRUKTUR (PERSERO)

BY THE GRACE OF GOD THE MOST HIGH,

THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to implement the regulatory and supervisory duties for PT Sarana Multi Infrastruktur (Persero), the Financial Services Authority has the authority to establish regulations regarding the supervision of PT Sarana Multi Infrastruktur (Persero); b. that before Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector came into effect, PT Sarana Multi Infrastruktur (Persero) had obtained a business license as an infrastructure financing company subject to Financial Services Authority Regulation Number 46/POJK.05/2020 concerning Infrastructure Financing Companies;
c. that with the implementation of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, PT Sarana Multi Infrastruktur (Persero) is an infrastructure financing company and/or development activities formed due to a special assignment from the government and is not included in the scope of financing services business;
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 Supervision of PT Sarana Multi Infrastruktur (Persero);

Recalling:

1. 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) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
2. Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
3. Government Regulation Number 66 of 2007 concerning State Capital Participation for the Establishment of State-Owned Limited Liability Companies (Persero) in the Field of Infrastructure Financing (State Gazette of the Republic of Indonesia Year 2007 Number 150) as amended several times, lastly by Government Regulation Number 53 of 2020 concerning the Second Amendment to Government Regulation Number 66 of 2007 concerning State Capital Participation for the Establishment of State-Owned Limited Liability Companies (Persero) in the Field of Infrastructure Financing (State Gazette of the Republic of Indonesia Year 2020 Number 217);

DECIDING:
To establish:
FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING SUPERVISION OF PT SARANA MULTI INFRASTRUKTUR (PERSERO).

CHAPTER I
GENERAL PROVISIONS

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

1. PT Sarana Multi Infrastruktur (Persero), hereinafter referred to as the Company, is a state-owned enterprise established based on Government Regulation Number 66 of 2007 concerning State Capital Participation for the Establishment of State-Owned Limited Liability Companies (Persero) in the Field of Infrastructure Financing as last amended by Government Regulation Number 53 of 2020 concerning the Second Amendment to Government Regulation Number 66 of 2007 concerning State Capital Participation for the Establishment of State-Owned Limited Liability Companies (Persero) in the Field of Infrastructure Financing.
2. Examination is a series of activities to search for, collect, process, and evaluate data and/or information, and to assess and provide conclusions regarding the Company's business operations.
3. Financing is the provision of funds or claims that can be equated, based on a loan agreement or consensus between the Company and the debtor, which obligates the debtor to repay the loan after a certain period, including those conducted based on Sharia principles.
4. Infrastructure is technical, physical, system, hardware, and software facilities required to provide services to the public and support the structural network so that economic and social growth of the community can run well.
5. Sharia Principles are Islamic legal principles based on fatwas and/or Sharia compliance statements issued by institutions having the authority to issue fatwas in the field of Sharia.
6. Sharia Business Unit, hereinafter abbreviated as UUS, is a work unit of the Company's headquarters that carries out Financing based on Sharia Principles and/or functions as the head office of offices carrying out Financing based on Sharia Principles.
7. Board of Directors is the Company organ authorized and fully responsible for managing the Company for the benefit of the Company, in accordance with the Company's purpose and objectives, and representing the Company, both inside and outside the court, in accordance with the Articles of Association.
8. Board of Commissioners is the Company organ tasked with conducting general and/or specific supervision in accordance with the Articles of Association and providing advice to the Board of Directors.
9. Sharia Supervisory Board, hereinafter abbreviated as DPS, is a board that has the task and function of supervision and providing advice to the Board of Directors regarding the implementation of the Company's activities to ensure compliance with Sharia Principles.
10. Good Corporate Governance for the Company, hereinafter referred to as Good Corporate Governance, is the structure and process used and applied by the Company's organs to improve the achievement of business results and optimize the Company's value for all stakeholders in an accountable manner and based on legal regulations and ethical values.
11. Company Health Level, hereinafter referred to as Health Level, is the result of an assessment of the Company's condition conducted regarding Good Corporate Governance, risk profile, profitability, and capital.
12. Maximum Limit for Financing Provision, hereinafter abbreviated as BMPP, is a specific limit in the disbursement of Financing permitted based on this Financial Services Authority Regulation.

CHAPTER II
SCOPE OF SUPERVISION OVER PT SARANA MULTI INFRASTRUKTUR (PERSERO)

Article 2
The Company is declared as a financial services institution supervised by the Financial Services Authority based on legal regulations.

Article 3
(1) The Financial Services Authority conducts supervision over the Company.
(2) The scope of supervision by the Financial Services Authority over the Company as referred to in paragraph (1) includes:
a. institutional structure and management; b. business operations;
c. funding sources, capital participation, and fund placement;
d. Health Level assessment; e. determination of supervision status; f. implementation of anti-money laundering programs, prevention of terrorism financing, and prevention of proliferation financing of weapons of mass destruction, implementation of anti-fraud strategies, and consumer protection; g. reporting; h. the Company's compliance aspects with legal regulations; and
i. other aspects that are functions, duties, and authorities of the Financial Services Authority based on legal regulations.

Article 4
The Financial Services Authority conducts supervision over the Company as referred to in Article 3 paragraph (1) through:
a. indirect supervision; and/or b. direct supervision.

Article 5
Indirect supervision as referred to in Article 4 letter a is conducted through analysis of:
a. periodic reports, incidental reports, and/or other reports submitted by the Company to the Financial Services Authority; and/or b. other information.

Article 6
(1) Direct supervision as referred to in Article 4 letter b is conducted through direct Examination of the Company.
(2) Direct Examination of the Company as referred to in paragraph (1) is implemented in accordance with the Financial Services Authority Regulation concerning Direct Examination of non-bank financial services institutions.

CHAPTER III
INSTITUTIONAL STRUCTURE AND MANAGEMENT

First Section
Institutional Structure
Paragraph 1
Offices and Organizational Structure

Article 7
(1) The Company is located and has its headquarters in accordance with the Company's Articles of Association.
(2) In the event the Company opens or closes offices outside the headquarters, the Company must report the opening or closing of offices outside the headquarters in writing to the Financial Services Authority at the latest 10 (ten) working days from the date of opening or closing.

Article 8
(1) The Company must have an organizational structure that clearly describes at least the functions:
a. finance, administration, and accounting; b. marketing, Financing, and investment;
c. risk management, internal control, and compliance;
d. implementation of anti-money laundering and terrorism financing prevention programs, prevention of proliferation financing of weapons of mass destruction, and other financial crimes; e. information system management; f. education and consumer protection services; and g. fraud control. (2) The organizational structure as referred to in paragraph (1) must be supplemented with written descriptions of duties, authorities, responsibilities, and work procedures. (3) The organizational structure as referred to in paragraph (1) must reflect good internal control. (4) The Company must have employees responsible for each function as referred to in paragraph (1). (5) The Company must have employees with expertise in Infrastructure Financing and Project Financing. (6) In the implementation of functions as referred to in paragraph (1), the Company must be supported by at least a data processing system that can generate complete, accurate, up-to-date, whole, and accountable information for decision-making.

Paragraph 2
Sharia Business Unit

Article 9
(1) The Company may conduct business activities based on Sharia Principles, the implementation of which must be through a UUS.
(2) The Company must allocate working capital for the UUS that is set aside separately.
(3) The UUS as referred to in paragraph (1) must meet the following requirements:
a. maintaining separate bookkeeping; b. having at least 1 (one) DPS member who has obtained a recommendation from an institution having the authority to issue fatwas in the field of Sharia;
c. having a UUS leader who must meet the following requirements:

1. does not have non-performing loans and/or financing;
2. is not included in the list of parties prohibited from becoming principal parties;
3. has expertise and/or experience in the field of Sharia financial services; and
4. does not hold concurrent positions in other functions within the Company; and
   d. referring to fatwas issued by institutions having the authority to issue fatwas in the field of Sharia.

Article 10
(1) The Company intending to close a UUS must obtain approval from the Financial Services Authority.
(2) The closure of a UUS is prohibited from harming the interests of debtors and creditors.
(3) In the closure of a UUS as referred to in paragraph (1), the Company must meet the following requirements:
a. notifying the plan to close the UUS to debtors and creditors; b. submitting procedures for the settlement of rights and obligations of debtors and creditors;
c. resolving objections from debtors and creditors, if there are objections from debtors and creditors, based on legal regulations; and
d. settling the rights and obligations of the UUS owned based on legal regulations.
(4) Procedures and implementation of requirements as referred to in paragraph (3) must take into account the interests of the parties and other relevant stakeholders. (5) To obtain approval for the plan to close the UUS as referred to in paragraph (1), the Board of Directors must submit an application to the Financial Services Authority attaching documents as follows:
a. draft minutes of the General Meeting of Shareholders approving the cessation of Financing activities based on Sharia Principles; b. reasons for closing the UUS;
c. a list of Financing disbursements based on Sharia Principles that have been carried out, accompanied by information on the debtor's name, the nominal amount received based on Sharia Principles, and the term of Financing based on Sharia Principles; and
d. procedures for the settlement of rights and obligations of the UUS.

Article 11
(1) The Financial Services Authority provides approval or rejection of the application for approval of the plan to close the UUS as referred to in Article 10 paragraph (1) within a maximum period of 20 (twenty) working days from the date the complete documents for the application for approval of the plan to close the UUS as referred to in Article 10 paragraph (5) are received. (2) In processing the application for approval of the plan to close the UUS as referred to in paragraph (1), the Financial Services Authority conducts:
a. analysis and research on the completeness of documents as referred to in Article 10 paragraph (5); and b. analysis of compliance with legal regulations. (3) In the event of missing documents as referred to in Article 10 paragraph (5), the Financial Services Authority submits a request for document completeness to the Company. (4) The Company must submit the complete documents as referred to in paragraph (3) at the latest 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (5) In the event the Company has submitted the complete documents as referred to in paragraph (4), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (1). (6) If within 20 (twenty) working days from the date of the document completeness request letter as referred to in paragraph (3), the Financial Services Authority has not received a response to the document completeness request, the Board of Directors is deemed to have cancelled the application for approval of the plan to close the UUS. (7) In the event the application for the plan to close the UUS is approved, the Financial Services Authority issues a written approval letter for the plan to close the UUS to the Company. (8) In the event the application for the plan to close the UUS is rejected, the Financial Services Authority issues a written rejection letter for the plan to close the UUS accompanied by reasons for rejection to the Company.

Article 12
After obtaining approval for the plan to close the UUS as referred to in Article 11 paragraph (7), the Company must meet the following requirements:
a. holding a General Meeting of Shareholders approving the cessation of UUS business activities; b. ceasing all UUS business activities;
c. announcing the plan to cease UUS business activities and the plan to settle UUS obligations in a daily newspaper with national circulation at the latest 15 (fifteen) working days from the date of the approval letter for the plan to close the UUS; and
d. settling all rights and obligations of the UUS at the latest 1 (one) year from the date of the approval letter for the plan to close the UUS.

Article 13
(1) The Company must report the implementation of the closure of the UUS to the Financial Services Authority at the latest 15 (fifteen) working days after all rights and obligations of the UUS as referred to in Article 12 letter d are settled. (2) The reporting of the cessation of UUS business activities as referred to in paragraph (1) must be submitted by the Board of Directors attached with documents as follows:
a. a copy of the decision regarding the issuance of the license for the establishment of the UUS; b. the latest financial position report of the UUS;
c. proof of implementation of the announcement as referred to in Article 12 letter c;
d. proof of settlement of all rights and obligations of the UUS as referred to in Article 12 letter d; and e. a statement letter from the Board of Directors stating that all UUS obligations have been settled and that if there are claims and lawsuits in the future, they become the responsibility of the Company. (3) Based on the report as referred to in paragraph (1), the Financial Services Authority:
a. conducts research on the report on the implementation of the plan to close the UUS; and b. establishes a decision to revoke the license for the establishment of the UUS.

Second Section
Management
Paragraph 1
Board of Directors, Board of Commissioners, and Sharia Supervisory Board

Article 14
(1) The Company must have at least 3 (three) Board of Directors members.
(2) The Company must have a Board of Directors that oversees the compliance function.
(3) The Company must ensure that each Board of Directors member resides in Indonesia.
(4) The Company must ensure that Board of Directors members do not hold concurrent positions as directors or equivalent positions in other companies, both domestic and foreign. (5) The Company must ensure that Board of Directors members do not hold concurrent positions as members of the board of commissioners or equivalent positions in more than 1 (one) other company, both domestic and foreign. (6) Concurrent positions as referred to in paragraph (5) do not include cases where the Board of Directors member responsible for supervision over participation in subsidiary companies having business in the field of infrastructure financing, performing functional tasks, becomes a member of the board of commissioners or equivalent in a subsidiary company controlled by the Company, provided that such concurrent position does not cause the person concerned to neglect the implementation of duties and authorities as a Board of Directors member.

Article 15
(1) The Company must have at least 2 (two) Board of Commissioners members.
(2) The Company must have at least 1 (one) independent commissioner.
(3) The Company must ensure that Board of Commissioners members do not hold concurrent positions as members of the board of commissioners or equivalent positions in more than 3 (three) other companies, both domestic and foreign. (4) Concurrent positions as referred to in paragraph (3) do not include cases where:
a. the Board of Commissioners member responsible for supervision over participation in subsidiary companies having business in the field of Infrastructure Financing, performing functional tasks, becomes a member of the board of commissioners in a subsidiary company controlled by the Company, provided that such concurrent position does not cause the person concerned to neglect the implementation of duties and authorities as a Board of Commissioners member; and/or b. the Board of Commissioners member holds a position in a non-profit organization or institution, provided that the concurrent position does not neglect the implementation of duties and authorities as a Board of Commissioners member.

Article 16
(1) In the event the Company conducts part of its business activities based on Sharia Principles through the establishment of a UUS, the Company must have at least 1 (one) DPS member. (2) The Company must ensure that DPS members do not hold concurrent positions as Board of Directors members or Board of Commissioners members in the Company. (3) The Company must ensure that DPS members do not hold concurrent positions as directors, board of commissioners members, or Sharia supervisory board members in more than 4 (four) other financial institutions.

Paragraph 2
Assessment of Competence and Propriety for Candidates for Board of Directors, Board of Commissioners, and Sharia Supervisory Board

Article 17
(1) The Financial Services Authority submits a written opinion to the Minister of Finance of the Republic of Indonesia as the shareholder regarding the fulfillment of expertise and experience requirements for Board of Directors members, Board of Commissioners members, and DPS members. (2) To submit the written opinion to the Minister of Finance of the Republic of Indonesia as the shareholder as referred to in paragraph (1), the Financial Services Authority conducts a competence and propriety assessment. (3) Provisions regarding factors and procedures for the competence and propriety assessment as referred to in paragraph (2) are implemented in accordance with the Financial Services Authority Regulation concerning the competence and propriety assessment for principal parties of financial services institutions. (4) The results of the competence and propriety assessment as referred to in paragraph (2) are established with the following predicates:
a. recommended; or b. not recommended.

Paragraph 3
Re-assessment of Board of Directors, Board of Commissioners, and Sharia Supervisory Board

Article 18
(1) The Financial Services Authority conducts re-assessment of Board of Directors members, Board of Commissioners members, and DPS members in the event there are indications of involvement and/or responsibility for integrity, financial reputation, and/or competence issues occurring in the Company. (2) Re-assessment of Board of Directors members, Board of Commissioners members, and DPS members as referred to in paragraph (1) is implemented in accordance with the Financial Services Authority Regulation concerning re-assessment for principal parties of financial services institutions.

Article 19
(1) The Financial Services Authority establishes the final result of the re-assessment of Board of Directors members, Board of Commissioners members, and DPS members as referred to in Article 18 paragraph (1) with the following predicates:
a. recommended; or b. not recommended.
(2) The final result of the re-assessment as referred to in paragraph (1) is conducted for evaluation of the results of the competence and propriety assessment as referred to in Article 17 paragraph (2).

Article 20
(1) The Financial Services Authority notifies the final result of the re-assessment of Board of Directors members, Board of Commissioners members, and DPS members who were re-assessed as referred to in Article 19 paragraph (1) in writing to the Minister of Finance of the Republic of Indonesia as the shareholder. (2) The Financial Services Authority records the re-assessment results of Board of Directors members, Board of Commissioners members, and DPS members as referred to in paragraph (1) in the related party track record database in the Financial Services Authority's electronic system.

Third Section
Internal Audit

Article 21
(1) The Company must have an internal audit work unit.
(2) The implementation of the internal audit work unit as referred to in paragraph (1) is stipulated in the implementation standards of the internal audit work unit which must at least cover matters regulated in the professional internal audit standards. (3) The implementation of the internal audit work unit as referred to in paragraph (1) is supported by adequate resources, methodology, devices, and audit techniques. (4) The Financial Services Authority has the authority to provide recommendations to the Company to improve the effectiveness and efficiency of the implementation of the internal audit work unit as referred to in paragraph (1).

Article 22
(1) The internal audit work unit is directly responsible to the Chief Executive Director.
(2) In carrying out its duties, the internal audit work unit submits reports to the Chief Executive Director.
(3) Copies of the report as referred to in paragraph (2) must be submitted to the Board of Commissioners, the audit committee, and the director overseeing the compliance function. (4) In certain cases, the internal audit work unit may submit reports directly to the Board of Commissioners.

Article 23
(1) The internal audit work unit has the authority:
a. to access all relevant information about the Company related to the duties and functions of the internal audit work unit; b. to communicate directly with the Board of Directors, Board of Commissioners, audit committee, and DPS;
c. to hold regular and incidental meetings with the Board of Directors, Board of Commissioners, audit committee, and DPS;
d. to coordinate activities with external auditors; e. to attend strategic meetings; and

f. other authorities related to the duties and functions of the internal audit work unit.
(2) The duties of the internal audit work unit consist of:
a. assisting the President Director and Board of Commissioners in conducting supervision, including planning, implementation, and monitoring of audit results; b. creating analysis and assessments in the fields of finance, accounting, operations, and other activities through audits;
c. identifying all possibilities to improve and increase the efficiency of resource and fund utilization;
d. providing improvement recommendations and objective information about audited activities at all management levels; and e. other duties.

Article 24
(1) The Company is required to submit reports to the Financial Services Authority regarding the implementation of the internal audit work unit, as follows:
a. reports on the implementation and main points of internal audit results submitted semi-annually, which must be submitted no later than:

1. July 31 of the current year, for the semester period ending on June 30; and
2. January 31 of the following year, for the semester period ending on December 31; and
   b. special reports regarding each internal audit finding estimated to endanger the continuity of the Company's business, no later than 3 (three) working days after discovery. (2) Reports on the implementation and main points of internal audit results as referred to in paragraph (1) letter a must cover at least:
   a. objectives, scope, and timing of internal audit implementation; b. internal audit findings;
   c. conclusions of the internal audit work unit regarding the audit results;
   d. recommendations of the internal audit work unit regarding audit findings; e. responses of the audited work unit regarding the internal audit results; f. commitments agreed upon between the audited work unit and the internal audit work unit; g. follow-up on internal audit finding recommendations by the audited work unit; and h. monitoring results by the internal audit work unit regarding the realization of commitments as referred to in letter f and follow-up on internal audit finding recommendations as referred to in letter g. (3) Reporting on the implementation and main points of internal audit results as referred to in paragraph (1) letter a and special reports as referred to in paragraph (1) letter b must be submitted online through the Financial Services Authority's data communication network system. (4) In the event that the Financial Services Authority's data communication network system as referred to in paragraph (3) is not yet available or experiences disruption, the submission of reports on the implementation and main points of internal audit results as referred to in paragraph (1) letter a and letter b is conducted via the Financial Services Authority's electronic mail address. (5) In the event of disruption to the Financial Services Authority's electronic mail, the submission of reports on the implementation and main points of internal audit results as referred to in paragraph (1) letter a and special reports regarding each internal audit finding estimated to endanger the continuity of the Company's business as referred to in paragraph (1) letter b is conducted offline through the Financial Services Authority's office.

Fourth Section
Administrative Sanctions

Article 25
(1) In the event that the Company violates provisions as referred to in Article 7 paragraph (2), Article 8, Article 9, Article 10 paragraph (1), (2), (3), and (4), Article 12, Article 13 paragraph (1), Article 14 paragraph (1), (2), (3), (4), and (5), Article 15 paragraph (1), (2), and (3), Article 16, Article 21 paragraph (1), and/or Article 24 paragraph (1) and (2), the Company shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all business activities;
c. restriction of certain business activities;
d. revocation of approval; and/or e. administrative fine.
(2) Administrative sanctions as referred to in paragraph (1) letters b through e may be imposed with or without prior imposition of an administrative sanction in the form of a written warning as referred to in paragraph (1) letter a. (3) The administrative fine sanction as referred to in paragraph (1) letter e is set at a maximum of IDR 100,000,000.00 (one hundred million rupiah). (4) In addition to the administrative sanctions as referred to in paragraph (1) letters a through d, violations of provisions as referred to in Article 7 paragraph (2), Article 12 letter c, Article 13 paragraph (1), and Article 24 paragraph (1) shall be subject to administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 25,000,000.00 (twenty-five million rupiah). (5) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (6) In the event that a violation of provisions as referred to in paragraph (1) occurs but the violation has been corrected, the Financial Services Authority imposes an administrative sanction in the form of a written warning that expires automatically. (7) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. lower the Health Level assessment results; b. conduct a re-evaluation of the main party causing the Company to violate the provisions as referred to in paragraph (1);
c. record a track record of the party causing the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system; and/or
d. provide specific recommendations to shareholders.

CHAPTER IV
BUSINESS CONDUCT

First Section
Business Activities

Article 26
(1) The Company's business activities include:
a. activities providing Financing facilities for Infrastructure Financing; b. activities or provision of other facilities related to Infrastructure Financing after obtaining approval from the Financial Services Authority;
c. custody and management of trust funds for and on behalf of third parties insofar as they comply with relevant regulations regarding trust funds; and/or
d. activities or provision of other facilities not related to Infrastructure Financing based on government assignment.
(2) In the event that the Company conducts business activities based on government assignment as referred to in paragraph (1) letter d, the Company is required to report to the Financial Services Authority no later than 5 (five) working days after receiving the assignment, containing at least information regarding the impact of the implementation of the government's task on:
a. the Company's financial condition; b. compliance with provisions in this Financial Services Authority Regulation; and
c. compliance with other relevant regulations.
(3) To support business activities as referred to in paragraph (1), the Company may also conduct:
a. provision of Financing support; b. provision of consulting services;
c. capital participation;
d. efforts to find swap markets related to Infrastructure Financing; e. provision of project development facilities; and/or f. provision of technical assistance.

Article 27
(1) Business activities as referred to in Article 26 paragraph (1) and paragraph (3) may be conducted based on Sharia Principles through the Sharia Unit (UUS). (2) In conducting business activities as referred to in paragraph (1), the UUS is required to use contracts that do not contradict Sharia Principles. (3) Compliance with Sharia Principles as referred to in paragraph (2) in the use of contracts must be supported by fatwas and/or Sharia compliance statements issued by an institution having authority in issuing fatwas in the field of Sharia. (4) In the event that fatwas and/or Sharia compliance statements as referred to in paragraph (3) have not yet been issued, compliance with Sharia Principles must be supported by an opinion from the Sharia Supervisory Board (DPS) regarding the use of specific contracts for business activities. (5) The conduct of business activities based on Sharia Principles as referred to in paragraph (1) must fulfill the principles of justice ('adl), balance (tawazun), benefit (maslahah), and universalism (alamiyah) and must not contain gharar, maysir, riba, zhulm, risywah, maksiat, and haram objects.

Article 28
(1) To be able to conduct activities or provide other facilities related to Infrastructure Financing as referred to in Article 26 paragraph (1) letter b, the Company must meet the following requirements:
a. the plan to conduct activities or provide other facilities related to Infrastructure Financing has been included in the Company's business plan; b. having a Health Level with a minimum composite rating of 2;
c. meeting the gearing ratio requirements; and
d. not currently subject to administrative sanctions by the Financial Services Authority.
(2) In the implementation of activities or provision of other facilities related to Infrastructure Financing as referred to in paragraph (1), the Company is required to submit an application to the Financial Services Authority attaching documents containing at least an explanation regarding:
a. mechanisms; b. application of prudential principles and risk mitigation;
c. business prospect analysis;
d. rights and obligations of the parties; and e. sample agreements to be used, for the activities or provision of other facilities to be offered.
(3) The Financial Services Authority provides approval or rejection of the application as referred to in paragraph (2) within a maximum period of 20 (twenty) working days from the date the application is received in complete form. (4) In providing approval or rejection as referred to in paragraph (3), the Financial Services Authority conducts:
a. analysis of document completeness as referred to in paragraph (2); b. analysis of compliance with provisions in this Financial Services Authority Regulation;
c. feasibility analysis of the plan to conduct activities or provide other facilities related to Infrastructure Financing submitted; and
d. analysis of compliance with other relevant regulations.
(5) In the event of document deficiencies as referred to in paragraph (2), the Financial Services Authority submits a request for document completeness.
(6) The Company must submit document completeness as referred to in paragraph (5) no later than 20 (twenty) working days from the date of the document completeness request letter from the Financial Services Authority. (7) In the event that the Company has submitted document completeness as referred to in paragraph (6), the Financial Services Authority provides approval or rejection in accordance with the provisions as referred to in paragraph (3). (8) If within 20 (twenty) working days from the date of the document completeness request as referred to in paragraph (5), the Financial Services Authority has not received a response to the document completeness request, the Company is deemed to have cancelled the application for approval of other facilities. (9) In the event that the application for approval to conduct activities or provide other facilities related to Infrastructure Financing as referred to in paragraph (3) is approved, the Financial Services Authority establishes an approval decision for the implementation of activities or provision of other facilities related to Infrastructure Financing to the Company. (10) In the event that the application for approval to conduct activities or provide other facilities related to Infrastructure Financing as referred to in paragraph (3) is rejected, the Financial Services Authority issues a written rejection letter accompanied by reasons for rejection to the Company.

Second Section
Financing Objects

Article 29
(1) The Company's Financing objects include:
a. Infrastructure Financing including:

1. Transportation infrastructure;
2. Road infrastructure;
3. Water resources and irrigation infrastructure;
4. Drinking water infrastructure;
5. Centralized wastewater management system infrastructure;
6. Local wastewater management system infrastructure;
7. Waste management system infrastructure;
8. Telecommunications and informatics infrastructure;
9. Electricity infrastructure;
10. Oil and gas infrastructure;
11. Renewable energy infrastructure;
12. Energy conservation infrastructure;
13. Urban facility infrastructure;
14. Educational facility infrastructure;
15. Sports and arts facility and infrastructure;
16. Area infrastructure;
17. Tourism infrastructure;
18. Health infrastructure;
19. Correctional institution infrastructure;
20. Public housing infrastructure;
21. State building infrastructure;
22. Industrial ecosystem infrastructure; and
23. Battery-based electric vehicle infrastructure; and
    b. Financing for the sector/field of climate change mitigation/adaptation implementation.
    (2) The types of Infrastructure and sectors/fields of climate change mitigation/adaptation implementation that become Financing objects as referred to in paragraph (1) refer to the types of Infrastructure and sectors/fields of climate change mitigation/adaptation implementation based on regulations and/or based on government assignment.

Third Section
Financing Policy

Article 30
(1) The Company is required to have a written Financing policy.
(2) The Financing policy as referred to in paragraph (1) must contain at least:
a. prudential principles in Financing; b. organization and management of Financing;
c. Financing approval policy;
d. Financing documentation and administration; e. Financing supervision; and f. resolution of problematic Financing.
(3) The Financing policy as referred to in paragraph (1) must be approved by the Board of Commissioners.
(4) The Financing policy as referred to in paragraph (1) is regulated in Director regulations.

Article 31
The Company is required to comply with the Financing policy as referred to in Article 30 in the implementation of providing Financing and managing Financing consistently and consistently.

Fourth Section
Financing Agreements

Article 32
(1) All Financing agreements between the Company and debtors must be made in writing.
(2) Financing agreements between the Company and debtors as referred to in paragraph (1) are drafted in accordance with regulations regarding consumer and public protection in the financial services sector.

Fifth Section
Business Plan

Article 33
(1) The Company is required to prepare a realistic business plan.
(2) Provisions regarding the Company's business plan are implemented in accordance with Financial Services Authority Regulations regarding business plans of non-bank financial services institutions.

Sixth Section
Prohibitions

Article 34
In conducting business activities, the Company is prohibited from:
a. directly collecting funds from the public in the form of checking accounts, savings, deposits, and/or other forms equivalent to public fund collection; b. providing guarantees in any form for the fulfillment of obligations of other parties, except guarantees for the fulfillment of obligations of subsidiaries having businesses in the field of Infrastructure Financing; and
c. issuing promissory notes, except as guarantees for debts to creditors.

Seventh Section
Administrative Sanctions

Article 35
(1) In the event that the Company violates provisions as referred to in Article 26 paragraph (2), Article 27 paragraph (2), (3), (4), and (5), Article 28 paragraph (2), Article 30 paragraph (1) and (3), Article 31, Article 32 paragraph (1), Article 33 paragraph (1), and Article 34, the Company shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all business activities;
c. restriction of certain business activities;
d. revocation of approval; and/or e. administrative fine.
(2) Administrative sanctions as referred to in paragraph (1) letters b through e may be imposed with or without prior imposition of an administrative sanction in the form of a written warning as referred to in paragraph (1) letter a. (3) The administrative fine sanction as referred to in paragraph (1) letter e is set at a maximum of IDR 100,000,000.00 (one hundred million rupiah). (4) In addition to the administrative sanctions as referred to in paragraph (1) letters a through d, violations of provisions as referred to in Article 26 paragraph (2) shall be subject to administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 25,000,000.00 (twenty-five million rupiah). (5) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (6) In the event that a violation of provisions as referred to in paragraph (1) occurs but the violation has been corrected, the Financial Services Authority imposes an administrative sanction in the form of a written warning that expires automatically. (7) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. lower the Health Level assessment results; b. conduct a re-evaluation of the main party causing the Company to violate the provisions as referred to in paragraph (1);
c. record a track record of the party causing the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system; and/or
d. provide specific recommendations to shareholders.

CHAPTER V
FUNDING SOURCES, PARTICIPATION, AND FUND PLACEMENT

First Section
Funding Sources

Article 36
(1) To finance its activities, the Company may obtain funding sources from:
a. state capital participation receipts; b. issuance of securities;
c. loans sourced from:

1. central government;
2. regional government;
3. foreign government;
4. multilateral organizations; and
5. banks and/or financial institutions, both domestic and foreign;
   d. securitization; e. subordinated loans; f. grants; and/or g. other funding sources in accordance with regulations.
   (2) Funding sources as referred to in paragraph (1) for business activities based on Sharia Principles must fulfill Sharia Principles.
   (3) In conducting funding management as referred to in paragraph (1) and paragraph (2), the Company is required to fulfill prudential principles and risk management. (4) The Company is required to have an internal control system and written funding management policy. (5) The funding management policy as referred to in paragraph (4) must be approved by the Board of Commissioners. (6) The funding management policy as referred to in paragraph (4) is regulated in Director regulations.

Article 37
(1) The Company is required to meet gearing ratio requirements of at least 0 (zero) times and at most 10 (ten) times.
(2) The gearing ratio as referred to in paragraph (1) must be obtained from the comparison between the sum of:
a. securities issued as referred to in Article 36 paragraph (1) letter b; b. loans as referred to in Article 36 paragraph (1) letter c; and
c. subordinated loans as referred to in Article 36 paragraph (1) letter e,
with the difference between the sum of equity and subordinated loans as referred to in Article 36 paragraph (1) letter e and participation.
(3) Subordinated loans as referred to in paragraph (2) letter c, which are loans received by the Company, must meet the following requirements:
a. with a minimum term of 5 (five) years; b. in the event of liquidation, claim rights apply last among all existing loans; and
c. stipulated in a written agreement between the Company and the lender.
(4) Subordinated loans that can be counted as the denominator in the calculation of the gearing ratio as referred to in paragraph (2) are set at a maximum of 50% (fifty percent) of paid-up capital.

Second Section
Participation

Article 38
(1) The Company is prohibited from conducting direct participation except in:
a. companies in the financial services sector; and/or b. companies engaged in Infrastructure projects as referred to in Article 29 paragraph (1) letter a. (2) The total amount of the Company's direct participation as referred to in paragraph (1) is set at a maximum of 75% (seventy-five percent) of the Company's equity. (3) Equity as referred to in paragraph (2) is based on the latest audited financial statements. (4) The Company is required to meet the direct participation amount requirements as referred to in paragraph (2) at the time of making the participation. (5) In conducting direct participation as referred to in paragraph (1), the Company is required to fulfill prudential principles and risk management. (6) The Company is required to have an internal control system and written direct participation policy. (7) The direct participation policy as referred to in paragraph (6) must be approved by the Board of Commissioners. (8) The direct participation policy as referred to in paragraph (6) is regulated in Director regulations.

Third Section
Fund Placement

Article 39
(1) The Company is prohibited from placing funds except in the following types of fund placement:
a. savings at banks; b. checking accounts at banks;
c. deposits at banks;
d. securities issued by the Republic of Indonesia and Bank Indonesia; e. corporate bonds with a minimum investment grade rating established by a rating agency recognized by the Financial Services Authority; f. collective investment contract instruments; and/or g. other financial instruments with a minimum investment grade rating established by a rating agency recognized by the Financial Services Authority. (2) Types of fund placement as referred to in paragraph (1) also include types of fund placement using Sharia Principles.

Article 40
(1) In conducting fund placement as referred to in Article 39, the Company is required to fulfill prudential principles and risk management.
(2) The Company is required to have an internal control system and written fund placement policy.
(3) The fund placement policy as referred to in paragraph (2) must be approved by the Board of Commissioners.
(4) The fund placement policy as referred to in paragraph (2) is regulated in Director regulations.

Article 41
(1) In conducting fund placement as referred to in Article 40, the Company is required to conduct:
a. analysis of fund placement risks, which must consist at least of market risk, liquidity risk, and operational risk, and contingency plans in the event of increased fund placement risk; and b. adequate and documented studies in placing, maintaining, and releasing fund placements. (2) The Board of Directors is required to make professional fund placement decisions and optimize the Company's value.

Article 42
(1) The Company, in conducting fund placement as referred to in Article 40, is required to have a fund placement committee.
(2) The fund placement committee as referred to in paragraph (1) assists the Board of Directors in formulating fund placement policies and supervising the implementation of established fund placement policies.

Fourth Section
Administrative Sanctions
Article 43
(1) In the event that the Company violates the provisions as referred to in Article 36 paragraph (2), paragraph (3), paragraph (4), and paragraph (5), Article 37 paragraph (1), Article 38 paragraph (1), paragraph (4), paragraph (5), paragraph (6), and paragraph (7), Article 39 paragraph (1), Article 40 paragraph (1), paragraph (2), and paragraph (3), Article 41, and/or Article 42 paragraph (1), the Company shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction on certain business activities;
d. cancellation of approval; and/or e. administrative fine.
(2) Administrative sanctions as referred to in paragraph (1) letters b through e may be imposed with or without prior imposition of an administrative sanction in the form of a written warning as referred to in paragraph (1) letter a. (3) The administrative fine sanction as referred to in paragraph (1) letter e is set at a maximum of Rp100,000,000.00 (one hundred million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority provides an administrative sanction in the form of a written warning that ends automatically. (6) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. lower the Health Level assessment results; b. conduct a re-evaluation of the main party that caused the Company to violate the provisions as referred to in paragraph (1);
c. record a track record against the party that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system; and/or
d. provide specific recommendations to shareholders.

CHAPTER VI
HEALTH LEVEL ASSESSMENT
First Section
General
Article 44
(1) The Company is required to maintain and/or improve the Health Level by applying prudent principles and risk management in carrying out business activities. (2) The Company is required to conduct a Health Level assessment using a risk-based approach on an individual basis. (3) In the event that the Company exercises control over a subsidiary, in addition to conducting a Health Level assessment using a risk-based approach on an individual basis as referred to in paragraph (2), the Company is required to conduct a Health Level assessment using a risk-based approach on a consolidated basis. (4) In the event that the Company conducts part of its business based on Sharia Principles, the Company is required to conduct a Sharia Business Unit (UUS) Health Level assessment using a risk-based approach on an individual basis. (5) The individual Health Level assessment as referred to in paragraph (2) and the consolidated Health Level assessment as referred to in paragraph (3) are conducted with an assessment scope covering the following factors:
a. Good Corporate Governance; b. risk profile;
c. profitability; and
d. capital adequacy.
(6) Further provisions regarding the individual Health Level assessment as referred to in paragraph (2) and the consolidated Health Level assessment as referred to in paragraph (3) are established by the Financial Services Authority.

Article 45
The Health Level assessment as referred to in Article 44 is implemented in accordance with the Financial Services Authority Regulation regarding the assessment of the financial health level of non-bank financial service institutions.

Second Section
Assessment of the Good Corporate Governance Factor
Article 46
(1) The assessment of the Good Corporate Governance factor as referred to in Article 44 paragraph (5) letter a is an assessment of the implementation of Good Corporate Governance principles by the Company. (2) The Company is required to apply the Good Corporate Governance principles as referred to in paragraph (1) in every business activity at all levels or stages of the organization. (3) The Good Corporate Governance principles as referred to in paragraph (1) and paragraph (2) include at least:
a. openness; b. accountability;
c. responsibility;
d. independence; and e. fairness.

Article 47
(1) The implementation of Good Corporate Governance principles as referred to in Article 46 must be formulated in guidelines containing at least:
a. procedures for the implementation of duties and responsibilities of the Board of Directors, Board of Commissioners, and Sharia Supervisory Board (DPS); b. completeness and procedures for the implementation of duties of committees and work units carrying out internal control functions;
c. policies and procedures for the implementation of compliance, internal audit, and external audit functions;
d. policies and procedures for the implementation of risk management, including internal control systems; e. remuneration policies; and f. policies on the transparency of financial and non-financial conditions. (2) The Financial Services Authority conducts an assessment of the Good Corporate Governance guidelines as referred to in paragraph (1). (3) The Financial Services Authority has the authority to request the Company to improve the Good Corporate Governance guidelines as referred to in paragraph (1). (4) The Financial Services Authority conducts an assessment of the implementation of Good Corporate Governance as referred to in Article 46. (5) The Financial Services Authority has the authority to request the Company to take or not take certain actions to improve the implementation of Good Corporate Governance. (6) The Company is required to fulfill the Financial Services Authority's request to take or not take certain actions as referred to in paragraph (5).

Third Section
Risk Profile Assessment
Paragraph 1
Implementation of Risk Management
Article 48
(1) The Company is required to implement risk management effectively.
(2) The effective implementation of risk management as referred to in paragraph (1) includes at least:
a. active supervision by the Board of Directors, Board of Commissioners, and DPS; b. adequacy of policies, procedures, and risk limit determinations;
c. adequacy of risk identification, measurement, control, and monitoring processes as well as risk management information systems; and
d. comprehensive internal control systems.
(3) Risk management as referred to in paragraph (1) must be applied to:
a. credit risk; b. market risk;
c. liquidity risk;
d. operational risk; e. legal risk; f. reputation risk; g. strategic risk; and h. compliance risk.
(4) The Company may establish other risks outside the risks as referred to in paragraph (3) that arise from the implementation of the Company's business activities after obtaining approval from the Financial Services Authority. (5) The implementation of risk management as referred to in paragraph (1) through paragraph (4) is implemented in accordance with the Financial Services Authority Regulation regarding the implementation of risk management for non-bank financial service institutions.

Paragraph 2
Implementation of Prudent Principles
Article 49
The Company is required to implement prudent principles consisting of at least:
a. assessment of Financing receivable quality; b. formation of provisions for Financing receivable write-offs and formation of provisions for Financing receivable impairment losses;
c. implementation of Maximum Financing Limits (BMPP);
d. management and maintenance of net foreign exchange positions; and e. risk mitigation.

Paragraph 3
Assessment of Financing Receivable Quality
Article 50
The Company is required to assess, monitor, and take steps to ensure that Financing receivable quality remains good.

Article 51
(1) The Company is required to establish the same Financing receivable quality for:
a. 1 (one) debtor with several different Financings; and/or b. 1 (one) debtor financed by several creditors to finance the same project.
(2) In the event that there is a difference in Financing receivable quality as referred to in paragraph (1), the Company is required to use the lowest Financing receivable quality.

Article 52
(1) Financing receivable quality is established based on assessment factors:
a. debtor's business prospects; b. debtor's financial performance; and
c. debtor's repayment capacity.
(2) The assessment of debtor's business prospects as referred to in paragraph (1) letter a includes components:
a. business growth potential; b. market conditions and the debtor's position in competition;
c. management quality and labor issues;
d. support from the government, group, and/or affiliates; and e. efforts made by the debtor in maintaining the environment.
(3) The assessment of debtor's financial performance as referred to in paragraph (1) letter b includes components:
a. profit acquisition; b. capital structure;
c. cash flow; and
d. sensitivity to market risk.
(4) The assessment of debtor's repayment capacity as referred to in paragraph (1) letter c includes components:
a. accuracy of principal and interest payments, or margin/profit sharing/returns for activities based on Sharia Principles; b. availability and accuracy of debtor's financial information;
c. completeness of Financing documentation;
d. compliance with Financing agreements; e. appropriateness of fund usage; and f. fairness of the source of obligation payments.
(5) The assessment of Financing receivable quality based on assessment factors as referred to in paragraph (1) is established as:
a. performing; b. special attention;
c. doubtful;
d. questionable; or e. non-performing.
(6) Further provisions regarding the assessment of Financing receivable quality as referred to in paragraph (1) and paragraph (5) are established by the Financial Services Authority.

Article 53
(1) Financing receivable quality categorized as Problematic Financing consists of Financing receivables with doubtful, questionable, and non-performing quality. (2) The Company is required to have a net Problematic Financing ratio of no more than 5% (five percent). (3) The net Problematic Financing ratio as referred to in paragraph (2) is calculated by comparing Problematic Financing as referred to in paragraph (1) after being reduced by provisions for Financing receivable write-offs formed by the Company, with the total balance of Financing receivables.

Paragraph 4
Formation of Provisions for Financing Receivable Write-offs and Formation of Provisions for Financing Receivable Impairment Losses
Article 54
(1) The Company is required to calculate provisions for Financing receivable write-offs in fulfilling prudent principles and Health Level assessment.
(2) The calculation of provisions for Financing receivable write-offs as referred to in paragraph (1) is set at a minimum of:
a. 1% (one percent) of the balance of Performing Financing receivables after being reduced by collateral; b. 5% (five percent) of the balance of Financing receivables with special attention quality after being reduced by collateral;
c. 15% (fifteen percent) of the balance of Financing receivables with doubtful quality after being reduced by collateral;
d. 50% (fifty percent) of the balance of Financing receivables with questionable quality after being reduced by collateral; or e. 100% (one hundred percent) of the balance of Financing receivables with non-performing quality after being reduced by collateral. (3) The Company is required to form provisions for Financing receivable write-offs at a minimum in accordance with the provisions as referred to in paragraph (2) in monthly reports. (4) The value of collateral as referred to in paragraph (2) that can be counted as a reduction in the Financing balance is set at a maximum equal to the balance of the Financing receivable.

Article 55
(1) The Company is required to form provisions for Financing receivable impairment losses in accordance with financial accounting standards.
(2) The formation of provisions for Financing receivable impairment losses as referred to in paragraph (1) is conducted for the preparation of financial reports audited by public accountants.

Paragraph 5
Implementation of Maximum Financing Limits (BMPP)
Article 56
(1) The Company is required to fulfill BMPP to all related parties at a maximum of 25% (twenty-five percent) of the Company's equity.
(2) Related parties as referred to in paragraph (1) include:
a. entities that are controllers of the Company; b. business entities where the Company acts as a controller;
c. individuals or business entities acting as controllers of business entities as referred to in letter b;
d. business entities whose control is exercised by:

1. entities as referred to in letter a; or
2. individuals and/or business entities as referred to in letter c;
   e. Board of Commissioners or Board of Directors of the Company; f. parties having family relationships up to the second degree, both horizontally and vertically, from the Board of Commissioners or Board of Directors of the Company as referred to in letter e; g. board of commissioners or board of directors or equivalent bodies of business entities as referred to in letters b through d; h. business entities whose board of commissioners or board of directors or equivalent bodies are:
3. the Board of Directors or Board of Commissioners of the Company; or
4. the board of commissioners or board of directors or equivalent bodies of business entities as referred to in letters b through d;
   i. business entities where:
5. the Board of Directors or Board of Commissioners of the Company as referred to in letter e act as controllers; or
6. the board of commissioners or board of directors or equivalent bodies of business entities as referred to in letters b through d act as controllers; and
   j. business entities that have financial dependence on the Company and/or parties as referred to in letters b through i.

Article 57
(1) The Company is required to fulfill BMPP to 1 (one) debtor that is not a related party at a maximum of 40% (forty percent) of the Company's equity.
(2) The Company is required to fulfill BMPP to 1 (one) group of debtors that is not a related party at a maximum of 50% (fifty percent) of the Company's equity. (3) If a debtor has a control relationship with other debtors through ownership, management, and/or financial relationships including:
a. the debtor is a controller of another debtor; b. 1 (one) same party is a controller of several debtors;
c. the debtor has financial dependence with another debtor;
d. the debtor issues guarantees to take over and/or repay part or all of the obligations of another debtor if the other debtor fails to fulfill its obligations (default) to the Company; and/or e. the board of commissioners and/or board of directors of the debtor become the board of commissioners and/or board of directors of another debtor, the debtor is classified as a member of a debtor group as referred to in paragraph (2). (4) Provisions regarding debtor groups as referred to in paragraph (3) do not apply to:
a. state-owned enterprises and/or local government-owned enterprises; and b. holding companies of state-owned enterprises and/or local government-owned enterprises, including their subsidiaries.

Article 58
The basis for calculating equity in calculating BMPP as referred to in Article 56 paragraph (1) and Article 57 paragraph (1) and paragraph (2) is the equity in the Company's latest monthly report before the Financing disbursement is carried out.

Article 59
(1) BMPP provisions as referred to in Article 56 paragraph (1) and Article 57 paragraph (1) and paragraph (2) do not apply to Financing disbursements that receive:
a. government assignments for the implementation of government programs; and/or b. government guarantees, in accordance with applicable laws and regulations. (2) Government guarantees as referred to in paragraph (1) letter b are government guarantees that meet the provisions:
a. the guarantee is unconditional and irrevocable; b. it is disbursed within a definite timeframe since the claim is submitted, including partial withdrawals; and
c. it has a tenure of at least the same length as the Financing.

Article 60
(1) Exceeding BMPP may be caused by:
a. decrease in equity; b. exchange rate changes;
c. fair value changes;
d. business mergers and/or changes in management structure that cause changes in related parties and/or debtor groups; and/or e. changes in laws and regulations. (2) BMPP exceedances are calculated based on the value recorded on the date of the monthly report. (3) The Company is required to adjust BMPP exceedances and submit an action plan no later than 1 (one) month since the BMPP exceedance is established by the Financial Services Authority.

Article 61
(1) The target time for adjustment as referred to in Article 60 paragraph (3) is established:
a. for BMPP exceedances caused by matters as referred to in Article 60 paragraph (1) letters a through c, at the latest 9 (nine) months; b. for BMPP exceedances caused by matters as referred to in Article 60 paragraph (1) letter d, at the latest 12 (twelve) months; and/or
c. for BMPP exceedances caused by matters as referred to in Article 60 paragraph (1) letter e, at the latest 18 (eighteen) months,
since the deadline for submitting the action plan to the Financial Services Authority.
(2) In the event that the target time for completing the action plan as referred to in paragraph (1) is assessed as unachievable, the Company, based on approval from the Financial Services Authority, may establish a different target time for completing the action plan than the target time for completing the action plan as referred to in paragraph (1).

Article 62
The Company is prohibited from making an agreement or contract that establishes requirements obligating the Company to provide Financing that would result in a violation of BMPP, except for Financing disbursements for government assignments for the implementation of government programs and/or government guarantees as referred to in Article 59 paragraph (1).

Paragraph 6
Management and Maintenance of Net Foreign Exchange Positions
Article 63
(1) The Company is required to manage and maintain the overall net foreign exchange position at a maximum of 20% (twenty percent) of the Company's equity. (2) The overall net foreign exchange position as referred to in paragraph (1) is the sum of the absolute values of:
a. the net difference between assets and liabilities in the financial position report for each foreign currency; and b. the net difference between claims and obligations, both commitments and contingencies, in the administrative accounts for each foreign currency, all expressed in rupiah. (3) Further provisions regarding the net foreign exchange position as referred to in paragraph (1) are established by the Financial Services Authority.

Paragraph 7
Risk Mitigation
Article 64
(1) The Company is required to conduct Financing risk mitigation.
(2) Financing risk mitigation as referred to in paragraph (1) can be done by:
a. transferring Financing risk through infrastructure guarantee mechanisms in accordance with applicable laws and regulations; b. transferring Financing risk through credit insurance or credit guarantee mechanisms in accordance with applicable laws and regulations;
c. transferring risk over collateral from Financing activities through insurance mechanisms;
d. imposing land rights, mortgages, pledges, warehouse receipts, and/or fiduciary guarantees over collateral from Financing activities; and/or e. other risk mitigation based on applicable laws and regulations.

Fourth Section
Assessment of the Risk Profile Factor
Article 65
(1) The assessment of the risk profile factor as referred to in Article 44 paragraph (5) letter b is an assessment of:
a. inherent risk; and b. the quality of risk management implementation as referred to in Article 48 paragraph (1), in the Company's operations.
(2) Further provisions regarding the assessment of the risk profile factor as referred to in paragraph (1) are established by the Financial Services Authority.

Fifth Section
Assessment of the Profitability Factor
Article 66
(1) The assessment of the profitability factor as referred to in Article 44 paragraph (5) letter c includes at least:
a. profitability performance; b. sources of profitability; and
c. continuity of the Company's profitability.
(2) Further provisions regarding the assessment of the profitability factor as referred to in paragraph (1) are established by the Financial Services Authority.

Sixth Section
Assessment of the Capital Adequacy Factor
Article 67
The assessment of the capital adequacy factor as referred to in Article 44 paragraph (5) letter d includes at least:
a. level of capital adequacy; and b. capital management.

Article 68
(1) The Company is required to meet a minimum capital adequacy ratio of 10% (ten percent).
(2) The capital adequacy ratio as referred to in paragraph (1) is the ratio between adjusted capital and adjusted assets.
(3) The Company is required to have an equity to paid-up capital ratio of at least 50% (fifty percent).
(4) Further provisions regarding the assessment of the capital adequacy factor are established by the Financial Services Authority.

Seventh Section
Administrative Sanctions
Article 69
(1) In the event that the Company violates the provisions as referred to in Article 44 paragraph (1), paragraph (2), paragraph (3), and paragraph (4), Article 46 paragraph (2), Article 47 paragraph (1) and paragraph (6), Article 48 paragraph (1) and paragraph (3), Article 49, Article 50, Article 51, Article 53 paragraph (2), Article 54 paragraph (1) and paragraph (3), Article 55 paragraph (1), Article 56 paragraph (1), Article 57 paragraph (1) and paragraph (2), Article 60 paragraph (3), Article 62, Article 63 paragraph (1), Article 64 paragraph (1), and/or Article 68 paragraph (1) and paragraph (3), the Company shall be subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all of business activities;
c. restriction on certain business activities;
d. cancellation of approval; and/or e. administrative fine.
(2) Administrative sanctions as referred to in paragraph (1) letters b through e may be imposed with or without prior imposition of an administrative sanction in the form of a written warning as referred to in paragraph (1) letter a. (3) The administrative fine sanction as referred to in paragraph (1) letter e is set at a maximum of Rp100,000,000.00 (one hundred million rupiah). (4) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (5) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority provides an administrative sanction in the form of a written warning that ends automatically. (6) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services Authority has the authority to:
a. lower the Health Level assessment results; b. conduct a re-evaluation of the main party that caused the Company to violate the provisions as referred to in paragraph (1);
c. record a track record against the party that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system; and/or
d. provide specific recommendations to shareholders.

CHAPTER VII
ESTABLISHMENT OF SUPERVISORY STATUS
Article 70
(1) The Financial Services Authority establishes the supervisory status of the Company.
(2) The supervisory status of the Company as referred to in paragraph (1) consists of:
a. normal supervision; b. intensive supervision; and
c. special supervision.
(3) The establishment of the Company's supervisory status as referred to in paragraph (1) is conducted at any time in accordance with the Financial Services Authority's assessment. (4) The Financial Services Authority transmits information on intensive supervisory status as referred to in paragraph (2) letter b and special supervisory status as referred to in paragraph (2) letter c to the Minister of Finance of the Republic of Indonesia as the shareholder.

Article 71
(1) The Company is placed in intensive supervision status as referred to in Article 70 paragraph (2) letter b if the Company is assessed to have potential difficulties that endanger the continuity of the business. (2) The Company is assessed to have potential difficulties that endanger the continuity of the business as referred to in paragraph (1) if the Company meets the criteria:
a. Health Level with a composite rating of 4; b. the ratio of equity to paid-up capital is greater than or equal to 0% (zero percent) and less than 50% (fifty percent); and/or
c. the ratio of net Problematic Financing is more than 5% (five percent) up to less than 25% (twenty-five percent) of total Financing receivables.
(3) The Company is placed by the Financial Services Authority in intensive supervision status as referred to in paragraph (1) as of the date of the Financial Services Authority's notification letter. (4) The notification to the Company as referred to in paragraph (3) contains the placement of the Company in intensive supervision status as referred to in paragraph (1), accompanied by the reasons for the placement and the supervisory steps or actions that must be carried out by the Company.

Article 72
(1) The Financial Services Authority places the Company with intensive supervision status for a maximum period of 1 (one) year as of the date of the Financial Services Authority's notification letter. (2) The Financial Services Authority may extend the duration of the intensive supervision status for the Company if:
a. the duration of the intensive supervision status expires; and b. it still meets the criteria as referred to in Article 71 paragraph (2), for a maximum of 1 (one) time with a maximum duration of 1 (one) year. (3) The determination of the extension of the duration of the Company's intensive supervision status as referred to in paragraph (2) is accompanied by an increase in supervisory actions. (4) If the extension period as referred to in paragraph (2) expires, the Financial Services Authority determines the Company's supervision status. (5) The determination of the extension of the duration as referred to in paragraph (3) is based on the Financial Services Authority's assessment by considering the resolution of the approved action plan.

Article 73
(1) In the event the Company is placed in intensive supervision status, the Company is required to carry out improvement steps in accordance with the supervisory actions ordered by the Financial Services Authority. (2) The supervisory actions ordered by the Financial Services Authority as referred to in paragraph (1) include:
a. writing off Problematic Financing receivables classified as non-performing and accounting for the Company's losses with the Company's capital; b. limiting the payment of remuneration or other forms equivalent to members of the Board of Directors, Board of Commissioners, and/or DPS, or remuneration to related parties;
c. not conducting or delaying the distribution of bonus shares;
d. improving the business plan; e. not conducting certain transactions with related parties and/or other parties determined by the Financial Services Authority; f. limiting the implementation of the new activity implementation plan; g. not conducting or limiting asset growth, and/or the provision of new funds; h. selling part of the Company's assets and/or obligations to other parties;
i. transferring product portfolios to other similar companies;
j. replacing members of the Board of Directors and/or members of the Board of Commissioners; k. placing statutory managers;
l. not conducting network office expansion;
m. not conducting certain business activities; n. closing the Company's network offices; o. strengthening capital through capital contributions; and/or p. other supervisory actions.

Article 74
In the event the Company is placed in intensive supervision status as referred to in Article 70 paragraph (2) letter b, the Company is required to:
a. submit an action plan according to the problems faced; b. submit the realization of the action plan; and
c. carry out other actions and/or report specific matters determined by the Financial Services Authority.

Article 75
(1) The Company is required to submit:
a. an action plan according to the problems faced as referred to in Article 74 letter a; and b. a complete list of related parties, no later than 10 (ten) working days since the Company was placed in intensive supervision status as referred to in Article 70 paragraph (2) letter b. (2) The action plan as referred to in paragraph (1) letter a must at least contain improvement plans according to the problems faced by the Company accompanied by the resolution timeframe. (3) The action plan as referred to in paragraph (1) letter a is evaluated by the Financial Services Authority no later than 5 (five) working days since the action plan is received in complete form. (4) In the event the action plan is rejected, the Financial Services Authority issues a written rejection letter accompanied by the reasons for rejection to the Company. (5) The Company is required to submit a revision of the action plan as referred to in paragraph (4) no later than 5 (five) working days since the date of rejection notification if the submitted action plan is rejected by the Financial Services Authority. (6) The Company is required to implement the action plan that has received approval from the Financial Services Authority.

Article 76
(1) The Company is required to submit to the Financial Services Authority the realization of the action plan as referred to in Article 74 letter b, for positions at the end of each month no later than the 10th of the following month. (2) If the deadline for submission of the realization of the action plan as referred to in paragraph (1) falls on a holiday, the deadline for submission of the realization of the action plan is on the first working day after the aforementioned deadline. (3) The realization of the action plan as referred to in paragraph (1) contains at least:
a. the Company's problems; b. the improvement actions that have been carried out by the Company; and
c. the implementation time of the improvement actions as referred to in letter b.

Article 77
(1) In the event the Company's condition improves and no longer meets the criteria as referred to in Article 71 paragraph (2), the Company is determined no longer to be in intensive supervision status as referred to in Article 70 paragraph (2) letter b. (2) The determination as referred to in paragraph (1) is notified in writing by the Financial Services Authority to the Company.

Article 78
(1) The Company is placed in special supervision status as referred to in Article 70 paragraph (2) letter c if:
a. the duration of intensive supervision status as referred to in Article 72 paragraph (1) or paragraph (4) expires; and/or b. the Company is assessed to have difficulties that endanger the continuity of the business. (2) The Company is assessed to have difficulties that endanger the continuity of the business as referred to in paragraph (1) letter b if the Company meets the criteria:
a. Health Level with a composite rating of 5; b. the ratio of equity to paid-up capital is less than 0% (zero percent); and/or
c. the ratio of net Problematic Financing is equal to or more than 25% (twenty-five percent) of total Financing receivables.
(3) The Company is placed by the Financial Services Authority in special supervision status as referred to in paragraph (1) as of the date of the Financial Services Authority's notification letter. (4) The notification to the Company as referred to in paragraph (3) contains the placement of the Company in special supervision status as referred to in paragraph (1), accompanied by the reasons for the placement and the supervisory steps or actions that must be carried out by the Company.

Article 79
(1) The Financial Services Authority places the Company as referred to in Article 78 paragraph (1) with special supervision status for a maximum period of 6 (six) months as of the date of the Financial Services Authority's notification letter. (2) If the duration of the Company's special supervision status as referred to in paragraph (1) expires, the Financial Services Authority may determine an extension of the duration of the special supervision status. (3) The determination of the extension of the duration of the Company's special supervision status as referred to in paragraph (2) is accompanied by an increase in supervisory actions. (4) The determination of the extension of the duration as referred to in paragraph (3) is based on the Financial Services Authority's assessment by considering the resolution of the approved action plan.

Article 80
(1) In the event the Company is placed in special supervision status as referred to in Article 70 paragraph (2) letter c, the Company is required to carry out improvement steps in accordance with the supervisory actions ordered by the Financial Services Authority as referred to in Article 73 paragraph (2). (2) In the event the Financial Services Authority has placed special supervision status as referred to in Article 70 paragraph (2) letter c, the supervisory actions determined when the Company was in intensive supervision status as referred to in Article 73 paragraph (2) are declared to remain in effect.

Article 81
(1) Companies in special supervision status as referred to in Article 70 paragraph (2) letter c are required to submit documents to the Financial Services Authority:
a. the latest financial reports consisting of balance sheet reports, income statements, cash flow statements, and administrative accounts; b. the latest details of Financing receivables grouped by quality;
c. the latest composite rating of the Health Level;
d. information regarding:

1. the latest list of details of the Company's bills and obligations to related parties; and
2. other information required by the Financial Services Authority; and
   e. cash flow projection reports for a period of 1 (one) month ahead or based on other reporting periods, detailed daily and with frequency as determined by the Financial Services Authority. (2) The documents as referred to in paragraph (1) are required to be submitted to the Financial Services Authority no later than 5 (five) working days since the Company was placed in special supervision status.

Article 82
The Financial Services Authority may determine a change in supervision status from special supervision status to normal supervision status or intensive supervision status if the Company no longer meets the criteria as referred to in Article 78 paragraph (2).

Article 83
(1) A Company with special supervision status determined by the Financial Services Authority cannot be rehabilitated, if based on the Financial Services Authority's assessment it is known that:
a. the time limit for special supervision status has expired; and b. the Company still meets the criteria as referred to in Article 78 paragraph (2).
(2) In the event a Company with special supervision status determined by the Financial Services Authority cannot be rehabilitated as referred to in paragraph (1), the Financial Services Authority submits a recommendation to the Minister of Finance of the Republic of Indonesia as the shareholder regarding the results of supervision of the Company.

Article 84
(1) In the event the Company violates provisions as referred to in Article 73 paragraph (1), Article 74, Article 75 paragraph (1), paragraph (5), and paragraph (6), Article 76 paragraph (1), Article 80 paragraph (1), and/or Article 81, the Company is subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all business activities;
c. restriction of certain business activities;
d. cancellation of approval; and/or e. administrative fine.
(2) Administrative sanctions as referred to in paragraph (1) letters b through e may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative fine sanctions as referred to in paragraph (1) letter e are determined at a maximum of Rp100,000,000.00 (one hundred million rupiah). (4) In addition to administrative sanctions as referred to in paragraph (1) letters a through d, violations of provisions as referred to in Article 75 paragraph (1) and paragraph (5), Article 76 paragraph (1), and Article 81 paragraph (2) are subject to administrative sanctions in the form of an administrative fine of Rp500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of Rp25,000,000.00 (twenty-five million rupiah). (5) In the event the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (6) In the event a violation of provisions as referred to in paragraph (1) occurs but the violation has been corrected, the Financial Services Authority provides an administrative sanction in the form of a written warning that ends automatically. (7) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. downgrade the Health Level assessment results; b. conduct a re-assessment of the main parties causing the Company to violate the provisions as referred to in paragraph (1);
c. record the track record of parties causing the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system; and/or
d. provide specific recommendations to shareholders.

CHAPTER VIII
APPLICATION OF ANTI-MONEY LAUNDERING PROGRAM, PREVENTION OF TERRORISM FINANCING, AND PREVENTION OF PROLIFERATION OF WEAPONS OF MASS DESTRUCTION FINANCING, APPLICATION OF ANTI-FRAUD STRATEGY, AND CONSUMER AND COMMUNITY PROTECTION First Section Application of Anti-Money Laundering Program, Prevention of Terrorism Financing, and Prevention of Proliferation of Weapons of Mass Destruction Financing

Article 85
(1) The Company applies an anti-money laundering program, prevention of terrorism financing, and prevention of proliferation of weapons of mass destruction financing effectively. (2) The application of the anti-money laundering program, prevention of terrorism financing, and prevention of proliferation of weapons of mass destruction financing as referred to in paragraph (1) is implemented in accordance with the Financial Services Authority Regulation regarding the application of anti-money laundering, prevention of terrorism financing, and prevention of proliferation of weapons of mass destruction financing programs in the financial services sector.

Second Section
Application of Anti-Fraud Strategy

Article 86
(1) The Company formulates and applies an anti-fraud strategy effectively.
(2) The formulation and application of the anti-fraud strategy as referred to in paragraph (1) is implemented in accordance with the Financial Services Authority Regulation regarding the application of anti-fraud strategy for financial services institutions.

Third Section
Consumer and Community Protection

Article 87
(1) The Company applies consumer and community protection principles in the conduct of business in accordance with provisions of legislation regarding consumer protection in the financial services sector. (2) The mechanism and procedures for applying consumer and community protection principles as referred to in paragraph (1) are implemented in accordance with the Financial Services Authority Regulation regarding consumer and community protection in the financial services sector.

CHAPTER IX
REPORTING
First Section
Annual Reports and Monthly Reports

Article 88
(1) The Company is required to submit annual reports consisting of:
a. annual financial reports that have been audited by a public accountant registered with the Financial Services Authority; and b. management reports, in electronic copy form to the Financial Services Authority. (2) The annual financial reports as referred to in paragraph (1) letter a are required to be prepared based on the calendar year. (3) The annual financial reports as referred to in paragraph (1) letter a are required to be prepared based on financial accounting standards and prepared in Indonesian Rupiah.

Article 89
(1) The Company is required to ensure that the annual financial reports audited by a public accountant as referred to in Article 88 paragraph (1) letter a disclose key audit matters to the Financial Services Authority. (2) The disclosure of key audit matters in the annual financial reports audited by a public accountant as referred to in paragraph (1) is exempted if:
a. legislation provisions prohibit the disclosure chosen as key audit matters to the public; and/or b. in conditions having detrimental consequences to public interest that exceed the benefits.

Article 90
(1) The Company is required to submit monthly reports to the Financial Services Authority.
(2) In the event the Company has a Sharia Business Unit (UUS), the Company is required to submit monthly reports of the UUS to the Financial Services Authority. (3) Provisions regarding monthly reports as referred to in paragraph (1) are implemented in accordance with the Financial Services Authority Regulation regarding monthly reports of non-bank financial services institutions. (4) Further provisions regarding the form, structure, and procedures for submitting monthly reports as referred to in paragraph (1) and paragraph (2) are determined by the Financial Services Authority.

Article 91
(1) The Company is required to submit:
a. annual financial reports audited by a public accountant as referred to in Article 88 paragraph (1) letter a to the Financial Services Authority no later than April 30 of the following year; b. management reports as referred to in Article 88 paragraph (1) letter b to the Financial Services Authority no later than April 30 of the following year; and/or
c. monthly reports as referred to in Article 90 paragraph (1) to the Financial Services Authority no later than the 10th of the following month,
online through the Financial Services Authority's data communication network system.
(2) In the event the Financial Services Authority's data communication network system as referred to in paragraph (1) is not yet available or experiences disturbances, submission is carried out through the Financial Services Authority's electronic mail address. (3) In the event there are disturbances to the Financial Services Authority's electronic mail, report submission is carried out offline through the Financial Services Authority's office. (4) If the deadline for report submission as referred to in paragraph (1) falls on a holiday, the deadline for report submission is on the first working day after the aforementioned deadline. (5) For certain conditions, the Financial Services Authority is authorized to determine different reporting deadlines from the provisions as referred to in paragraph (1). (6) The Company appoints a member of the Board of Directors responsible for the preparation and presentation of the Company's and UUS's monthly reports.

Second Section
Reporting of Certain Articles of Association Changes

Article 92
(1) The Company is required to report certain changes to the Articles of Association to the Financial Services Authority no later than 15 (fifteen) working days since the approval and/or receipt of the notification acceptance letter from the competent authority. (2) Certain changes to the Articles of Association as referred to in paragraph (1) include:
a. name change; b. change of purpose and business activities; and/or
c. reduction of paid-up capital; and/or
d. addition of paid-up capital.
(3) Reporting of name changes as referred to in paragraph (2) letter a must be submitted by the Board of Directors accompanied by the following documents:
a. a copy of the deed of change to the Articles of Association accompanied by proof of approval from the competent authority; and b. a photocopy of the tax identification number under the new name. (4) Reporting of changes to the purpose and business activities of the Company as referred to in paragraph (2) letter b must be submitted by the Board of Directors accompanied by a copy of the deed of change to the Articles of Association accompanied by proof of approval from the competent authority. (5) Reporting of reduction of paid-up capital for the Company as referred to in paragraph (2) letter c must be submitted by the Board of Directors accompanied by a copy of the deed of change to the Articles of Association accompanied by proof of approval from the competent authority. (6) Addition of paid-up capital as referred to in paragraph (2) letter d is prohibited from being carried out except in the form of:
a. cash deposits; b. conversion/transfer of retained earnings;
c. conversion/transfer of loans; and/or
d. bonus shares.
(7) Reporting of addition of paid-up capital for the Company as referred to in paragraph (2) letter d must be submitted by the Board of Directors accompanied by the following documents:
a. a copy of the deed of change to the Articles of Association accompanied by proof of the notification acceptance letter from the competent authority; b. a copy of the minutes of the General Meeting of Shareholders; and
c. proof of addition of paid-up capital, in the form of:

1. a photocopy of the proof of settlement of paid-up capital deposits from shareholders and a photocopy of the proof of placement of paid-up capital under the Company's name at a commercial bank, Sharia commercial bank, or Sharia business unit of a commercial bank in Indonesia and legalized by the receiving deposit bank, in the event the addition of paid-up capital is carried out in the form of cash deposits;
2. the Company's financial reports that have been audited by a public accountant registered with the Financial Services Authority before the addition of capital, if the addition of paid-up capital is carried out in the form of conversion/transfer of retained earnings, conversion/transfer of loans, and/or bonus shares; and
3. the annual business plan and the Company's steps in the use of the addition of paid-up capital.

Third Section
Reporting of Changes to the Board of Directors, Board of Commissioners, and Sharia Supervisory Board

Article 93
(1) In the event the Company makes changes to:
a. members of the Board of Directors; b. members of the Board of Commissioners; and/or
c. members of the DPS,
it is required to report to the Financial Services Authority no later than 15 (fifteen) working days after the changes are recorded by the competent authority. (2) Reporting of changes to members of the Board of Directors, Board of Commissioners, and/or members of the DPS of the Company as referred to in paragraph (1) must be submitted by the Board of Directors accompanied by a copy of the deed of the General Meeting of Shareholders regarding the appointment of members of the Board of Directors, members of the Board of Commissioners, and/or members of the DPS accompanied by proof of the notification acceptance letter from the competent authority.

Fourth Section
Reporting of Address Changes

Article 94
(1) The Company is required to report changes to the head office address and/or offices outside the head office in writing to the Financial Services Authority no later than 10 (ten) working days since the date of implementation of the change. (2) Reporting of changes to the head office address and/or offices outside the head office as referred to in paragraph (1) must be submitted by the Board of Directors accompanied by proof of ownership or control over the new office building showing the Company's office address along with photos of the exterior of the building and photos of the interior and room layout.

Fifth Section
Administrative Sanctions

Article 95
(1) In the event the Company violates provisions as referred to in Article 88, Article 89 paragraph (1), Article 90 paragraph (1) and paragraph (2), Article 91 paragraph (1), Article 92 paragraph (1) and paragraph (6), Article 93 paragraph (1), and/or Article 94 paragraph (1), the Company is subject to administrative sanctions in the form of:
a. written warning; b. suspension of part or all business activities;
c. restriction of certain business activities;
d. cancellation of approval; and/or e. administrative fine.
(2) Administrative sanctions as referred to in paragraph (1) letters b through e may be imposed with or without prior imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a. (3) Administrative fine sanctions as referred to in paragraph (1) letter e are determined at a maximum of Rp100,000,000.00 (one hundred million rupiah).

(4) In addition to administrative sanctions as referred to in paragraph (1), violations of the provisions as referred to in Article 91 paragraph (1), Article 92 paragraph (1), Article 93 paragraph (1), and/or Article 94 paragraph (1) are subject to administrative sanctions in the form of an administrative fine of Rp500,000.00 (five hundred thousand rupiah) per day of delay and at most Rp25,000,000.00 (twenty-five million rupiah). (5) In the event that the Company has fulfilled the provisions as referred to in paragraph (1), the Financial Services Authority revokes the administrative sanction. (6) In the event that there is a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority imposes an administrative sanction in the form of a written warning that ends automatically. (7) In addition to administrative sanctions as referred to in paragraph (1), the Financial Services Authority is authorized to:
a. lower the assessment results of the Health Level; b. conduct a re-assessment of the main party that caused the Company to violate the provisions as referred to in paragraph (1);
c. record the track record of the party that caused the Company to violate the provisions as referred to in paragraph (1) in the Financial Services Authority's electronic system; and/or
d. provide specific recommendations to shareholders.

CHAPTER X
OTHER PROVISIONS

Article 96
The Financial Services Authority may, based on certain considerations, grant approval or policies that differ from this Financial Services Authority Regulation.

CHAPTER XI
TRANSITIONAL PROVISIONS

Article 97
Upon the commencement of this Financial Services Authority Regulation:
a. direct and indirect supervision actions already conducted by the Financial Services Authority against the Company are declared valid and remain in effect; b. licenses for the establishment of UUS (Unit Usaha Syariah) already issued are declared to remain in effect; and
c. any approvals already granted by the Financial Services Authority are declared to remain in effect.

Article 98
Upon the commencement of this Financial Services Authority Regulation, the business license of the Company as an infrastructure financing company is declared not to be in effect.

Article 99
Members of the Board of Directors, members of the Board of Commissioners, and/or members of the DPS (Dewan Pengawas Syariah/Sharia Supervisory Board) of the Company who have served as Directors, Commissioners, and/or DPS members at the time this Financial Services Authority Regulation comes into effect may continue to serve as members of the Board of Directors, members of the Board of Commissioners, and/or members of the DPS of the Company.

Article 100
Financing Agreements that have been approved or agreed upon before this Financial Services Authority Regulation comes into effect remain in effect until the end of the Financing Agreement.

Article 101
(1) The obligation to fulfill BMPP (Minimum Capital Requirement) to all relevant parties as referred to in Article 56 begins to apply 2 (two) years from the promulgation of this Financial Services Authority Regulation. (2) Within a period of 2 (two) years from the promulgation of this Financial Services Authority Regulation, the provisions regarding the obligation to fulfill BMPP for the Company continue to follow the provisions of Financial Services Authority Regulation Number 46/POJK.05/2020 concerning Infrastructure Financing Companies.

Article 102
The obligation for the Board of Commissioners' approval of policies:
a. Financing as referred to in Article 30 paragraph (3); b. funding management as referred to in Article 36 paragraph (5);
c. direct investment as referred to in Article 38 paragraph (7); and
d. fund placement as referred to in Article 40 paragraph (3), begin to apply 1 (one) year from the promulgation of this Financial Services Authority Regulation.

Article 103
Provisions regarding the obligation to have a fund placement committee as referred to in Article 42 paragraph (1) begin to apply 1 (one) year from the promulgation of this Financial Services Authority Regulation.

Article 104
Provisions regarding:
a. the obligation to manage and maintain net foreign exchange positions as referred to in Article 63 paragraph (1); b. the obligation to fulfill the equity ratio against paid-up capital as referred to in Article 68 paragraph (3); and
c. the criteria for the equity ratio against paid-up capital as referred to in Article 71 paragraph (2) letter b and Article 78 paragraph (2) letter b,
begin to apply 6 (six) months from the promulgation of this Financial Services Authority Regulation.

Article 105
(1) Administrative sanctions already imposed on the Company based on Financial Services Authority Regulation Number 46/POJK.05/2020 concerning Infrastructure Financing Companies are declared to remain in effect insofar as they do not conflict with this Financial Services Authority Regulation. (2) In the event that the Company is unable to overcome the causes of the administrative sanctions as referred to in paragraph (1), the Company is subject to administrative sanctions in accordance with the procedures for imposing administrative sanctions regulated in this Financial Services Authority Regulation.

CHAPTER XII
CLOSING PROVISIONS

Article 106
Upon the commencement of this Financial Services Authority Regulation, Financial Services Authority Regulation Number 46/POJK.05/2020 concerning Infrastructure Financing Companies (State Gazette of the Republic of Indonesia Year 2020 Number 249, Supplement to the State Gazette of the Republic of Indonesia 6576) is declared not to be in effect for the Company.

Article 107
Implementation provisions of Financial Services Authority Regulation Number 46/POJK.05/2020 concerning Infrastructure Financing Companies (State Gazette of the Republic of Indonesia Year 2020 Number 249, Supplement to the State Gazette of the Republic of Indonesia 6576) are declared to remain in effect for the Company insofar as they do not conflict with the provisions in this Financial Services Authority Regulation.

Article 108
This Financial Services Authority Regulation begins to apply on the date of promulgation.

This copy is in accordance with the original
Director of Legal Development
Legal Department
Aat Windradi

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

Established in Jakarta on 7 October 2024

CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,
MAHENDRA SIREGAR

Promulgated in Jakarta on 15 October 2024

MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,
SUPRATMAN ANDI AGTAS

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2024 NUMBER 25/OJK signed

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 16 OF 2024
CONCERNING
SUPERVISION OF PT SARANA MULTI INFRASTRUKTUR (PERSERO)

I. GENERAL

In accordance with the authority regulated in Law Number 21 of 2011 concerning the Financial Services Authority and Government Regulation Number 66 of 2007 concerning State Capital Participation for the Establishment of State-Owned Limited Liability Companies (Persero) in the Field of Infrastructure Financing, as amended several times, most recently by Government Regulation Number 53 of 2020 concerning the Second Amendment to Government Regulation Number 66 of 2007 concerning State Capital Participation for the Establishment of State-Owned Limited Liability Companies (Persero) in the Field of Infrastructure Financing, the Financial Services Authority is authorized to regulate and supervise PT Sarana Multi Infrastruktur (Persero).

PT Sarana Multi Infrastruktur (Persero) is a financial institution in the form of a limited liability company established to support financing for the construction of infrastructure facilities other than financing sourced from the State Budget or financing from the banking sector. The existence of PT Sarana Multi Infrastruktur (Persero) is expected to contribute to further narrowing the gap in financing needs for infrastructure projects, which is currently assessed to be quite large.

Furthermore, to support government policy in meeting the increasing needs for national development financing, PT Sarana Multi Infrastruktur (Persero) is expected to accelerate the provision of Infrastructure Financing and carry out the provision of other development financing besides Infrastructure based on government assignment. The aforementioned assignment needs to be supported by a legal umbrella, specifically the expansion of the assignment mandate for PT Sarana Multi Infrastruktur (Persero).

In relation to this matter, the Financial Services Authority establishes a Financial Services Authority Regulation concerning the Supervision of PT Sarana Multi Infrastruktur (Persero). Through the issuance of this Financial Services Authority Regulation, it is expected that the regulation and supervision of the Financial Services Authority against PT Sarana Multi Infrastruktur (Persero) can be more optimal.

II. ARTICLE BY ARTICLE EXPLANATION

Article 1
Clear enough.

Article 2
Clear enough.

Article 3
Clear enough.

Article 4
Clear enough.

Article 5
Letter a
Clear enough.
Letter b
The term "other information" refers to information not contained in periodic reports, incidental reports, and/or other reports that support the implementation of supervision, including information obtained through mass media.

Article 6
Clear enough.

Article 7
Clear enough.

Article 8
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
The term "having good internal control" includes the separation of functions and fulfillment of regulatory provisions.
Paragraph (4)
Clear enough.
Paragraph (5)
The term "having expertise in Infrastructure Financing and Project Financing" includes, among others, having educational background, training, and/or experience in fields relevant to Infrastructure Financing and/or Project Financing. Paragraph (6) Clear enough.

Article 9
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 minimum number of 2 (two) members of the Board of Commissioners may include independent commissioners.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
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)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
The term "supported by adequate resources, methodology, equipment, and audit techniques" means that the implementation of the internal audit unit is supported by, among others:
a. the availability of human resources in the form of officials and internal auditors sufficient to carry out internal audit tasks and authorities; b. the availability of internal guidelines regarding internal audit methodology;
c. the availability of internal audit equipment in the form of systems, procedures, and information systems; and
d. the implementation of internal audits is carried out based on audit techniques in accordance with generally accepted internal audit standards.
The implementation of support for the internal audit unit is adjusted to the size, business complexity, financial capacity, and supporting Infrastructure of the Company. The basis for determining the business complexity of the Company, among others, is reflected in: diversity in business activities, products and/or services, office branch networks or distribution channels, and/or supporting information technology used. Paragraph (4) Clear enough.

Article 22
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
The term "in certain cases" includes, among others, if communication with the Chief Executive Officer is considered inappropriate. Examples of internal audit unit findings related to the integrity of the Chief Executive Officer.

Article 23
Clear enough.

Article 24
Clear enough.

Article 25
Paragraph (1)
The imposition of administrative sanctions considers, among others:
a. the impact of the violation on consumer losses, the Company's condition, and the financial services sector; b. the complexity of the violation;
c. the Company's financial condition; and/or
d. repeated violations of provisions.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
Clear enough.
Paragraph (5)
Clear enough.
Paragraph (6)
Clear enough.
Paragraph (7)
Clear enough.

Article 26
Paragraph (1)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
Clear enough.
Letter d
The term "government assignment" refers to assignments documented either in legislation or decisions established by the central government, in accordance with regulatory provisions. Paragraph (2) The term "receiving an assignment" refers to the time when the Company receives an assignment order based on legislation or decisions established by the central government. Paragraph (3) Letter a Clear enough. Letter b Clear enough. Letter c Clear enough. Letter d The term "swap market" is commonly known as the swap market. Letter e Clear enough. Letter f Examples of technical assistance include, among others, project assistance, pre-feasibility studies, feasibility studies, supporting documents, and transaction consultations.

Article 27
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
Clear enough.
Paragraph (5)
The term "adl" means placing something only in its proper place, giving something only to those entitled, and treating something according to its position. The term "tawazun" includes balance in material and spiritual aspects, private and public aspects, financial and real sectors, business and social aspects, and balance in utilization and sustainability aspects. The term "maslahah" refers to all forms of goodness with worldly and hereafter dimensions, material and spiritual, individual and collective, and must meet 3 (three) elements, namely Sharia compliance (halal), beneficial and bringing goodness (thoyib) in all aspects overall without causing harm. The term "alamiyah" means it can be done by, with, and for all interested parties (stakeholders) without distinguishing ethnicity, religion, race, and group, in accordance with the spirit of universal mercy (rahmatan lil alamin). The term "gharar" refers to transactions where the object is unclear, not owned, its existence is unknown, or it cannot be delivered at the time of the transaction, unless otherwise regulated in Sharia. The term "maysir" refers to speculative transactions not directly related to the productivity of the real sector. The term "riba" refers to the assurance of unlawful income addition, among others, in transactions exchanging similar goods that do not have equal quality, quantity, and time of delivery (fadhl), or in lending transactions requiring the recipient of the facility to return funds received exceeding the principal loan due to the passage of time (nasi’ah). The term "zhulm" refers to transactions that cause injustice to other parties. The term "risywah" refers to bribery in the form of money, facilities, or other forms that violate the law as an effort to obtain facilities or ease in a transaction. The term "maksiat" refers to human actions that violate moral laws contrary to Sharia Principles. The term "objek haram" refers to transactions whose objects are prohibited in Sharia.

Article 28
Clear enough.

Article 29
Paragraph (1)
Clear enough.
Paragraph (2)
The term "regulatory provisions" includes, among others, Regulations of the Minister of National Development Planning/Head of the National Development Planning Agency of the Republic of Indonesia regarding the implementation of government-business cooperation in the provision of Infrastructure.

Article 30
Clear enough.

Article 31
Clear enough.

Article 32
Clear enough.

Article 33
Paragraph (1)
The term "formulating a realistic business plan" means formulating a business plan by considering external and internal factors that can affect the Company's business continuity, the principle of prudence, and the principle of a healthy financial services institution, including Sharia Principles for Companies carrying out part of their business activities based on Sharia Principles, so that it is measurable and achievable. Paragraph (2) Clear enough.

Article 34
Letter a
The term "other forms equated with the collection of public funds" includes, among others, insurance premiums and pension fund contributions.
Letter b
Clear enough.
Letter c
Clear enough.

Article 35
Paragraph (1)
See explanation of Article 25 paragraph (1).
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
Clear enough.
Paragraph (5)
Clear enough.
Paragraph (6)
Clear enough.
Paragraph (7)
Clear enough.

Article 36
Paragraph (1)
Letter a
Clear enough.
Letter b
The term "securities" refers to securities issued through a public offering mechanism based on capital market regulatory provisions, including securities issued not through a public offering mechanism such as medium term notes (MTN). Letter c Number 1 Clear enough. Number 2 Clear enough. Number 3 Clear enough. Number 4 The term "multilateral organization" includes, among others, international financial institutions and those operating in the field of development. Number 5 Clear enough. Letter d Clear enough. Letter e Clear enough. Letter f Clear enough. Letter g Clear enough. Paragraph (2) Clear enough. Paragraph (3) Clear enough. Paragraph (4) Clear enough. Paragraph (5) Clear enough. Paragraph (6) Clear enough.

Article 37
Paragraph (1)
Clear enough.
Paragraph (2)
Example: The Company has equity of Rp4 trillion and paid-up capital of Rp2 trillion, receiving total financing as follows:
a. loans received from Bank XYZ amounting to Rp400 billion; b. bond issuance amounting to Rp1 trillion;
c. subordinated loans received from shareholders amounting to Rp1 trillion; and
d. medium term note issuance amounting to Rp400 billion.
The Company also has an investment in PT DEF amounting to Rp200 billion. Thus, the Company's gearing ratio is as follows:
Gearing Ratio = (loans from bank + bond issuance + subordinated loans + medium term note issuance) : (equity + subordinated loans) - investment Gearing Ratio = (Rp400 billion + Rp1 trillion + Rp1 trillion + Rp400 billion) : (Rp4 trillion + Rp1 trillion) – Rp200 billion Company's Gearing ratio = 0.58. Paragraph (3) Clear enough. Paragraph (4) Clear enough.

Article 38
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
The term "equity" refers to equity based on applicable financial accounting standards in Indonesia.
Paragraph (4)
Clear enough.
Paragraph (5)
Clear enough.
Paragraph (6)
Clear enough.
Paragraph (7)
Clear enough.
Paragraph (8)
Clear enough.

Article 39
Paragraph (1)
Letter a
The term "bank" refers to commercial banks and Sharia commercial banks.
Letter b
See explanation of letter a.
Letter c
See explanation of letter a.
Letter d
Clear enough.
Letter e
Clear enough.
Letter f
The term "contract-type collective investment instruments (KIK)" includes, among others, KIK mutual funds, KIK real estate investment funds, and/or KIK infrastructure investment funds. Letter g Clear enough. Paragraph (2) Clear enough.

Article 40
Paragraph (1)
The term "principle of prudence" refers to fund placement that considers security, optimal yield, liquidity needs, and the Company's asset and liability profile. Paragraph (2) Clear enough. Paragraph (3) Clear enough. Paragraph (4) Clear enough.

Article 41
Paragraph (1)
Clear enough.
Paragraph (2)
The term "making professional fund placement decisions" means the Company makes fund placement decisions based on professional practices and knowledge in the field of fund placement. In placing funds, the Company needs to optimize studies, inputs, and opinions from professionals in the field of fund placement so that fund placement decisions are implemented based on professional practices and knowledge in the field of fund placement. The term "making fund placement decisions to optimize the Company's value" means the Company makes fund placement decisions that are in accordance with the Company's fund placement risk appetite and are able to provide the most optimal fund placement yield for the Company's stakeholders. The Company is expected not to make fund placement decisions based on certain considerations that would harm stakeholder interests, for example, making fund placement decisions that provide unfair profits in the form of gratuities, remuneration, commissions, personal profits, and/or other gifts to parties not entitled.

Article 42
Clear enough.

Article 43
Paragraph (1)
See explanation of Article 25 paragraph (1).
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
Clear enough.
Paragraph (5)
Clear enough.
Paragraph (6)
Clear enough.

Article 44
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
The term "control" refers to an action aimed at influencing the management and/or policies of a subsidiary in any way, either directly or indirectly.
Paragraph (4)
Clear enough.
Paragraph (5)
Letter a
Clear enough.
Letter b
Clear enough.
Letter c
The term "profitability" refers to the ability to generate profit over a certain period, including aiming to measure the effectiveness of management in running Company operations. Letter d The term "capitalization" refers to the ability to maintain adequate capital as an element used as a reserve to overcome possible risks over assets owned by the Company. Paragraph (6) Clear enough.

Article 45
Clear enough.

Article 46
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Letter a
The term "openness" includes openness in the decision-making process and openness in disclosure and provision of relevant and easily accessible information to stakeholders. Letter b The term "accountability" includes clarity of functions and implementation of responsibility. Letter c The term "responsibility" includes clarity of functions and implementation of responsibility, covering the alignment of management with regulatory provisions and ethical values, standards, principles, and practices. Letter d The term "independence" includes a state managed independently and professionally, free from conflicts of interest and influence or pressure from any party that is not in accordance with regulatory provisions and ethical values, standards, principles, and practices. Letter e The term "fairness" includes equality, balance, and justice in fulfilling stakeholder rights arising from agreements, regulatory provisions, and ethical values, standards, principles, and practices.

Article 47
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Clear enough.
Paragraph (4)
Clear enough.
Paragraph (5)
The term "certain actions to improve the implementation of Good Corporate Governance" includes, among others:
a. increasing the number of Board of Directors and/or Board of Commissioners members in cases where the existing number of Board of Directors and/or Board of Commissioners members is assessed as ineffective and inefficient; and b. adding information regarding transparency of share ownership of less than 5% (five percent) by Board of Directors members in other companies located domestically and internationally, in cases where the aforementioned Board of Directors members are proven to exercise control. Paragraph (6) Clear enough.

Article 48
Paragraph (1)
Clear enough.
Paragraph (2)
Clear enough.
Paragraph (3)
Letter a
The term "credit risk" is the risk due to the failure of debtors and/or other parties as transaction counterparties to fulfill obligations to the Company. Letter b The term "market risk" is the risk on the balance sheet position and administrative accounts, including derivative transactions, resulting from changes in market conditions. Letter c The term "liquidity risk" is the risk resulting from the Company's inability to fulfill maturing obligations/liabilities from sources

cash flow financing, and/or from high-quality liquid assets that can be pledged or easily converted into cash, without disrupting the Company's activities and financial condition.

Letter d
The term "operational risk" refers to the risk resulting from insufficient and/or non-functioning internal processes, human error, system failures, and/or external events affecting the Company's operations.

Letter e
The term "legal risk" refers to the risk arising from legal claims and/or weaknesses in legal aspects that may arise, among others, due to the absence of underlying regulations or contractual weaknesses, such as failure to meet contract validity conditions or inadequate collateral.

Letter f
The term "reputational risk" refers to the risk resulting from a decline in stakeholder trust stemming from negative perceptions of the Company.

Letter g
The term "strategic risk" refers to the risk resulting from the Company's inaccuracy in making decisions and/or implementing strategic decisions, as well as failure to anticipate changes in the business environment.

Letter h
The term "compliance risk" refers to the risk arising from the Company's failure to comply with and/or implement regulatory provisions and applicable rules.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Article 49
Clear enough.

Article 50
Steps that the Company can take to maintain the quality of Financing receivables include the application of adequate standard procedures and operations and periodic monitoring of Financing receivables quality.

Article 51
Paragraph (1)
Letter a
Clear enough.

Letter b
The term "borrower financed by multiple creditors" includes, among others, borrowers who receive syndicated credit/financing facilities from multiple creditors.

Paragraph (2)
Clear enough.

Article 52
Clear enough.

Article 53
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Example:
Based on the Company's monthly report as of June 30, 2024, the Company has total Financing of Rp3,000,000,000,000 (three billion rupiah), while total Financing receivables with poor, doubtful, and non-performing quality are Rp1,000,000,000,000 (one billion rupiah). The Company has made provisions for Financing receivables write-off for Financing receivables consisting of poor, doubtful, and non-performing Financing receivables amounting to Rp500,000,000,000 (five hundred million rupiah). The calculation of Financing receivables with problematic Financing quality categories after deducting Financing receivables write-off provisions compared to total Financing is as follows:

(Rp1,000,000,000,000 (one billion rupiah) - Rp500,000,000,000 (five hundred million rupiah)) / Rp3,000,000,000,000 (three billion rupiah) x 100% = 16.67%, so the Company violates the net problematic Financing ratio regulation.

Article 54
Clear enough.

Article 55
Clear enough.

Article 56
Paragraph (1)
Clear enough.

Paragraph (2)
The term "controller" refers to a party that has the ability to influence the management and/or policies of the Company, either directly or indirectly.

Article 57
Clear enough.

Article 58
Clear enough.

Article 59
Paragraph (1)
Letter a
See the explanation of Article 26 paragraph (1) letter d.

Letter b
Clear enough.

Paragraph (2)
Clear enough.

Article 60
Paragraph (1)
Letter a
The term "equity decline" refers to a decline that results in equity as the denominator for BMPP calculations becoming smaller.

Letter b
Exchange rate changes include, among others, changes in exchange rates that result in an increase in the recorded value of Financing in foreign currency, which can cause BMPP to be exceeded.

Letter c
Fair value changes include, among others, changes in value in equity method investment recording that has been more than 1 (one) year or recording of securities measured at fair value through profit or loss or through equity (mark to market).

Letter d
Clear enough.

Letter e
Examples of changes in regulatory provisions include changes in parties categorized as related parties or borrower groups.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Article 61
Clear enough.

Article 62
Clear enough.

Article 63
Clear enough.

Article 64
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Other risk mitigation examples based on regulatory provisions include cash collateral.

Article 65
Clear enough.

Article 66
Clear enough.

Article 67
Clear enough.

Article 68
Paragraph (1)
Clear enough.

Paragraph (2)
The term "adjusted capital" refers to the Company's equity based on applicable financial accounting standards.
The term "adjusted assets" refers to the value of Financing receivables assets after considering risk weights.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Article 69
Paragraph (1)
See the explanation of Article 25 paragraph (1).

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Article 70
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
The term "normal supervision status" refers to supervision of the Company that does not meet criteria or is assessed as not having potential difficulties endangering business continuity.

Letter b
The term "intensive supervision status" refers to an increase in the supervision process for a Company previously in normal supervision status, with the aim of restoring the Company's condition. Actions to restore the Company's condition are carried out by establishing supervisory actions appropriate to the Company's problems.

Letter c
The term "special supervision status" refers to an increase in the supervision process for a Company previously in intensive supervision, with the aim of restoring the Company's condition. Actions to restore the Company's condition are carried out by establishing supervisory actions appropriate to the Company's problems.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Article 71
Clear enough.

Article 72
Clear enough.

Article 73
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Clear enough.

Letter e
Clear enough.

Letter f
Clear enough.

Letter g
Clear enough.

Letter h
The term "other parties" includes, among others, banks or non-bank financial service institutions.

Letter i
Clear enough.

Letter j
Clear enough.

Letter k
Clear enough.

Letter l
Clear enough.

Letter m
Clear enough.

Letter n
Clear enough.

Letter o
Clear enough.

Letter p
The term "other supervisory actions" includes, among others, improvements to risk management policies or procedures.

Article 74
Clear enough.

Article 75
Clear enough.

Article 76
Clear enough.

Article 77
Clear enough.

Article 78
Clear enough.

Article 79
Clear enough.

Article 80
Clear enough.

Article 81
Paragraph (1)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Number 1
Clear enough.

Number 2
Other required information includes information needed for the implementation of action plans or improvement plans, including information on improvements to financing feasibility assessment mechanisms or information on improvements to fund placement mechanisms.

Letter e
Clear enough.

Paragraph (2)
Clear enough.

Article 82
Clear enough.

Article 83
Clear enough.

Article 84
Paragraph (1)
See the explanation of Article 25 paragraph (1).

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Article 85
Clear enough.

Article 86
Clear enough.

Article 87
Clear enough.

Article 88
Paragraph (1)
Letter a
Clear enough.

Letter b
The term "management report" refers to non-financial reports containing information including, among others, reports from the Board of Directors, Board of Commissioners, and DPS, company business activity profile reports, Good Corporate Governance, company risk management, and corporate social responsibility reports.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Article 89
Clear enough.

Article 90
Clear enough.

Article 91
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Example of specific conditions if force majeure conditions exist, the Financial Services Authority may adjust the deadline for submitting annual financial reports, management reports, and monthly reports.

Paragraph (6)
Clear enough.

Article 92
Clear enough.

Article 93
Clear enough.

Article 94
Clear enough.

Article 95
Paragraph (1)
See the explanation of Article 25 paragraph (1).

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Article 96
The term "specific considerations in granting approval or different policies" includes, among others, for:
a. supporting national policies; b. maintaining public interest;
c. maintaining industry growth; and/or
d. maintaining healthy business competition.

Examples of conditions requiring specific considerations are extraordinary events, hereinafter abbreviated as KLB, which can cause a significant increase in morbidity and mortality, also impacting the economy and society, thus requiring attention and handling by all relevant parties and regulated in other provisions regarding considerations in facing possible KLB.

Article 97
Clear enough.

Article 98
Clear enough.

Article 99
Clear enough.

Article 100
Clear enough.

Article 101
Clear enough.

Article 102
Clear enough.

Article 103
Clear enough.

Article 104
Clear enough.

Article 105
Clear enough.

Article 106
Clear enough.

Article 107
Clear enough.

Article 108
Clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 93/OJK