Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 17/BAPPEBTI/PER-SRG/10/2014 Concerning Amendments to Technical Guidelines for Warehouse Receipt Issuance

REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER: 17/BAPPEBTI/PER-SRG/10/2014 CONCERNING AMENDMENTS TO THE REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER 07/BAPPEBTI/PER-SRG/3/2008 CONCERNING TECHNICAL GUIDELINES FOR THE ISSUANCE OF WAREHOUSE RECEIPTS

BY THE GRACE OF GOD THE ALMIGHTY,
THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY,

Considering:
a. that in order to ensure administrative order and effectiveness of supervision in the implementation of the Warehouse Receipt System activities, it is necessary to perfect the technical guidelines for the issuance of Warehouse Receipts; b. that based on the considerations referred to in letter a, it is necessary to establish a Regulation of the Head of the Commodity Futures Trading Regulatory Agency;

Recalling:

1. Law Number 32 of 1997 on Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 1997 Number 93, Supplement to the State Gazette of the Republic of Indonesia Number 3720) as amended by Law Number 10 of 2011 (State Gazette of the Republic of Indonesia Year 2011 Number 79, Supplement to the State Gazette of the Republic of Indonesia Number 5232);
2. Law Number 9 of 2006 on the Warehouse Receipt System (State Gazette of the Republic of Indonesia Year 2006 Number 59, Supplement to the State Gazette of the Republic of Indonesia Number 4630) as amended by Law Number 9 of 2011 (State Gazette of the Republic of Indonesia Year 2011 Number 78, Supplement to the State Gazette of the Republic of Indonesia Number 5231);
3. Government Regulation Number 36 of 2007 on the Implementation of Law Number 9 of 2006 on the Warehouse Receipt System (State Gazette of the Republic of Indonesia Year 2007 Number 79, Supplement to the State Gazette of the Republic of Indonesia Number 4735) as amended by Government Regulation Number 70 of 2013 (State Gazette of the Republic of Indonesia Year 2013 Number 172, Supplement to the State Gazette of the Republic of Indonesia Number 5459);
4. Presidential Decree Number 84/P of 2009 on the Formation of the Second United Indonesia Cabinet as amended several times, lastly by Presidential Decree Number 8P of 2014;
5. Presidential Decree Number 69/M of 2013 on the Appointment of Echelon I Officials in the Ministry of Trade;
6. Presidential Regulation Number 47 of 2009 on the Formation and Organization of State Ministries as amended several times, lastly by Presidential Regulation Number 13 of 2014 (State Gazette of the Republic of Indonesia Year 2014 Number 24);
7. Presidential Regulation Number 24 of 2010 on the Position, Duties, and Functions of State Ministries as well as the Structure of Organizations, Duties, and Functions of Echelon I State Ministries as amended several times, lastly by Presidential Regulation Number 14 of 2014 (State Gazette of the Republic of Indonesia Year 2014 Number 25);
8. Trade Minister Regulation Number 31/M-DAG/PER/7/2010 on the Organization and Working Structure of the Ministry of Trade as amended by Trade Minister Regulation Number 57/M-DAG/PER/10/2012;
9. Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 07/BAPPEBTI/PER-SRG/3/2008 on Technical Guidelines for the Issuance of Warehouse Receipts;

DECIDES:

To establish: A REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY CONCERNING AMENDMENTS TO THE REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER 07/BAPPEBTI/PER-SRG/3/2008 CONCERNING TECHNICAL GUIDELINES FOR THE ISSUANCE OF WAREHOUSE RECEIPTS.

Article I
The provisions in the Appendix of the Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 07/BAPPEBTI/PER-SRG/3/2008 on Technical Guidelines for the Issuance of Warehouse Receipts are amended to read as set forth in the Appendix of this Regulation of the Head of the Commodity Futures Trading Regulatory Agency.

Article II
(1) With the enactment of this Regulation of the Head of the Commodity Futures Trading Regulatory Agency, the Parties are required to adjust to the provisions in this Regulation within a maximum period of 6 (six) months from the date this Regulation is established.

Appendix of the Regulation of the Head of the Commodity Futures Trading Regulatory Agency
Number: 17/BAPPEBTI/PER-SRG/09/2014

I. TECHNICAL GUIDELINES FOR THE ISSUANCE OF WAREHOUSE RECEIPTS

A. BACKGROUND
To realize the orderly and regular implementation of the Warehouse Receipt System, it is necessary to establish various requirements and procedures that must be fulfilled by every party conducting activities in the field of the Warehouse Receipt System, which include the issuance, transfer, guarantee, and settlement of Warehouse Receipt transactions. Regulations regarding the aforementioned requirements and procedures begin from the process of issuing Warehouse Receipts, which include parties eligible to issue Warehouse Receipts, the form of Warehouse Receipts that can be issued, registration of Warehouse Receipts with the Registration Center to obtain security codes, issuance of replacement Warehouse Receipts, and their registration with the Registration Center. To ensure that the issuance of Warehouse Receipts is carried out in accordance with legislation, and to provide legal certainty and guarantee public interests, it is necessary to regulate technical guidelines for the issuance of Warehouse Receipts.

B. REFERENCES
The references used in compiling these technical guidelines are based on, among others:
a. Legislation and implementing regulations related to the Warehouse Receipt System, namely:

1. Law Number 9 of 2006 on the Warehouse Receipt System as amended by Law Number 9 of 2011;
2. Government Regulation Number 36 of 2007 on the Implementation of Law Number 9 of 2006 on the Warehouse Receipt System as amended by Government Regulation Number 70 of 2013;
3. Legislation and implementing regulations relevant to these technical guidelines;
   b. ISO 9001:2000 Quality Management System.

C. DEFINITIONS

1. Goods Management Agreement Letter (SPPB)
   A letter of agreement signed by the Warehouse Manager with the goods owner regarding the storage of goods, which at least contains:
   a. identity of the parties; b. rights and obligations of the parties;
   c. storage period;
   d. description/description of goods; e. storage costs; f. insurance costs; g. billing method; h. compensation claims;
   i. dispute/settlement of differences; and
   j. closing.
2. Goods Transport Order (SPAB)
   Is an Order issued by the Goods Owner to the Goods Transport Company/Expeditur/Transporter to transport goods from the Goods Owner's location (Supply point) to the storage warehouse. The SPAB is copied to the Warehouse Manager and serves as the basis for recording the Master Document of Goods Receipt.
3. Goods Receipt Minutes (BABM)
   Is Minutes issued by the Warehouse Administration Section when one batch of Warehouse Receipt has been completed for entry.
   BABM is filled based on the summation of the Daily Goods In Report from Warehouse Receipts.
   As a sign of its authenticity, the BABM must be stamped and signed by both parties (Warehouse Head and Goods Owner/Goods Receiver representing).
4. Staple or Unit Load or Lot
   Is a unit stack of goods arranged neatly where the boxes are easy to count.
5. Shortage of goods at the time of entry
   Is the difference in shortage of boxes between the records in the truck waybill and the records of the unloading results.
6. Shrinkage of goods at the time of entry
   Is the difference in weight between the weight recorded in the truck waybill and the weight result at the time of unloading/entry.
7. Shrinkage of goods during storage (storage shrinkage)
   Is shrinkage calculated between the weight at the time of entry into the staple or lot and the final weight after weighing at the time of exit (boxes are sufficient but the weight is reduced).
8. Goods Dispatch Minutes (BAPB).
   When one batch of goods according to the accompanying SPAB has been completed unloading/realized, the Warehouse Administration Section issues/makes BAPB. BAPB is filled based on the summation of the Daily Goods Out Report from the SPAB. As a sign of its authenticity, the BAPB must be stamped and signed by both parties (Warehouse Head and Goods Owner/Expeditur representing).
9. SRG-Online
   Is an integrated Warehouse Receipt accounting system with Bappebti's supervision system provided and maintained by the Registration Center, which is accurate, current, safe, trustworthy, and reliable.
10. Security Code
    Is the Warehouse Receipt security code issued by the Registration Center.
11. Warehouse Receipt Account
    Is an account issued by the Registration Center and given to each Warehouse Receipt Holder in order to account for the Warehouse Receipts they own.
12. User Code (User ID)
    Is the user identity given by the Registration Center to each Warehouse Receipt Holder which can be used to access the Warehouse Receipt Account and related information.
13. Secret Code (password)
    Is the user password given by the Registration Center to each Warehouse Receipt Holder which can be used to access the Warehouse Receipt Account and related information.

D. STORAGE OF GOODS
Storage of goods is carried out with the following procedures:

1. The Goods Owner or their proxy submits a request letter to the Warehouse Manager to store goods according to Form Number SRG-OPR.46;
2. The Warehouse Manager accepts the request from the Goods Owner or their proxy to store goods;
3. The Warehouse Manager and the Goods Owner or their proxy make a Goods Management Agreement Letter (SPPB) with the example form and content according to Example Form Number SRG-OPR.47;
4. The Goods Owner or their proxy notifies the plan to enter goods by submitting the Notification of Plan for Goods Entry according to Form Number SRG-OPR.48 to the Warehouse Manager and is received at the latest 1 (one) day before the entry of goods into the Warehouse;
5. The Warehouse Manager submits a request for goods quality testing to the Commodity Quality Conformity Assessment Institution by attaching the Request Letter for Quality Conformity Assessment for Goods according to Form Number SRG-OPR.49;
6. The Commodity Quality Conformity Assessment Institution conducts goods quality testing according to the Request Letter for Quality Conformity Assessment for Goods;
7. The Commodity Quality Conformity Assessment Institution sends the goods quality test results to the Warehouse Manager via SRG-Online and submits the test result documents to the Warehouse Manager;
8. The Warehouse Manager conducts unloading and weighing of goods and signs the Goods Receipt Minutes (BABM) according to Form Number SRG-OPR.50;
9. The Warehouse Manager inputs the data on the amount of goods entered according to the BABM via SRG-Online;
10. The Warehouse Manager verifies the quality test result data via SRG-Online;
11. The Warehouse Manager is required to insure the stored goods which may include fire insurance, loss/theft, and/or flooding insurance. The Warehouse Manager may also cover fidelity insurance (warehouse manager failure insurance) or professional indemnity insurance.

E. ISSUANCE OF WAREHOUSE RECEIPTS
After the storage of goods is carried out, the Warehouse Manager issues Warehouse Receipts with the following procedures:

1. The Warehouse Manager verifies the value of goods using price references and inputs data for Warehouse Receipts via SRG-Online and requests a security code for Warehouse Receipts from the Registration Center via SRG-Online;
2. The Registration Center conducts verification on:
   a. legality of the Warehouse Manager (has obtained BAPPEBTI approval and identity and specimen signature of the party authorized to sign Warehouse Receipts is in accordance); b. legality of the Conformity Assessment Institution (has obtained BAPPEBTI approval);
   c. legality of the Warehouse (has obtained BAPPEBTI approval);
   d. Type of Goods (in accordance with the Trade Minister Regulation on Goods that Can Be Stored in Warehouses in the Warehouse Receipt System); e. Insurance Policy (that an Insurance Policy has been closed for the goods); f. Storage Expiration Time (does not exceed the storage capacity of the Goods); and g. Value of Goods (the value of goods entered in SRG-Online does not exceed the price tolerance according to available price information/market price).
3. In the event that the verification results of data for Warehouse Receipts meet the provisions, the Registration Center issues a security code, and in the event that verification of data for Warehouse Receipts does not meet the requirements, the Registration Center refuses to issue a security code and notifies the reasons for refusal to issue the security code; The Warehouse Manager sends proof of confirmation of receipt of the security code via SRG-Online;
4. The Warehouse Manager prints Warehouse Receipts with the form and content according to Form Number SRG-OPR.51.A (Warehouse Receipt to Order) and Form Number SRG-OPR.51.B (Warehouse Receipt to Bearer), and signs the Warehouse Receipts together with the Goods Owner or their proxy;
5. The Warehouse Manager hands over the Warehouse Receipt to the Goods Owner or their proxy;
6. The Warehouse Manager notifies the issuance of Warehouse Receipts via SRG-Online to the Registration Center;
7. The Registration Center accounts for Warehouse Receipts based on the notification from the Warehouse Manager via SRG-Online;
8. The Registration Center provides user identity (user id) and secret access code (password) directly to each Warehouse Receipt Holder.

F. ISSUANCE OF REPLACEMENT WAREHOUSE RECEIPTS
The issuance of Replacement Warehouse Receipts is carried out with the following procedures:

1. The Warehouse Receipt Holder or the recipient of the Guarantee Right in the event that the Warehouse Receipt is burdened with a Guarantee Right, submits a request for the issuance of a Replacement Warehouse Receipt using Form Number SRG-OPR.53;
2. Based on the request for the issuance of a Replacement Warehouse Receipt received by the Warehouse Manager, the Warehouse Manager verifies the authenticity of the applicant;
3. After verification, the Warehouse Manager declares the damaged Warehouse Receipt invalid by stamping "Warehouse Receipt Invalid" on the damaged or lost Warehouse Receipt and storing it for 3 (three) years;
4. Warehouse Receipts that have been stored for 3 (three) years as referred to in item 3 above can be destroyed. The destruction of Warehouse Receipts is carried out by signing the Minutes of Destruction of Original Damaged Warehouse Receipts whose form and content are in accordance with Model Form Number SRG-OPR.54;
5. The Warehouse Manager requests a new security code from the Registration Center;
6. The Registration Center issues a new security code after verifying the Warehouse Receipt data and records that the Warehouse Receipt to be replaced is no longer valid;
7. The Warehouse Manager sends confirmation to the Registration Center that the security code has been received properly;
8. The Warehouse Manager prints and issues a Replacement Warehouse Receipt whose form and content are in accordance with Model Form Number SRG-OPR.51.C (Replacement Warehouse Receipt for Warehouse Receipt to Order) and Model Form Number SRG-OPR.51.D (Replacement Warehouse Receipt for Warehouse Receipt to Bearer);
9. The Warehouse Manager notifies the issuance of the Replacement Warehouse Receipt to the Registration Center via SRG-Online;
10. The Registration Center accounts for the Replacement Warehouse Receipt based on the notification from the Warehouse Manager;
11. The Warehouse Manager hands over the Replacement Warehouse Receipt to the Warehouse Receipt Holder who submitted the replacement request or the recipient of the Guarantee Right in the event that the Warehouse Receipt is burdened with a Guarantee Right.

H. ISSUANCE OF WAREHOUSE RECEIPTS DUE TO WRITING ERRORS In the event of writing errors, the Warehouse Manager is required to immediately replace the writing error by issuing a new Warehouse Receipt with the following procedures:

1. In the event that the Warehouse Manager finds a writing error after the Warehouse Receipt has received a security code and is printed but has not been signed and/or handed over to the Goods Owner, the Warehouse Manager is required to notify the Registration Center and BAPPEBTI of the writing error.
2. In the event that the Warehouse Manager finds a writing error after the Warehouse Receipt has been printed, signed, and handed over to the Goods Owner, the Warehouse Manager is required to notify the writing error to the last Warehouse Receipt Holder, the recipient of the Guarantee Right (in the event that the Warehouse Receipt is currently guaranteed), the Registration Center, and BAPPEBTI.
3. The Warehouse Manager together with related parties conducts verification of the writing error of the Warehouse Receipt by referring to the documents used in issuing the Warehouse Receipt and is documented in the Verification Result Minutes and used as the basis for issuing the New Warehouse Receipt.
4. The Warehouse Manager is required to immediately correct the writing error by issuing a new Warehouse Receipt with the procedures as regulated in Letter F of this Appendix.
5. In the event of losses due to writing errors, it becomes the responsibility of the Warehouse Manager.
6. Warehouse Receipts containing errors are declared invalid and cancelled by the Warehouse Manager.
7. The Warehouse Manager is required to report Warehouse Receipts declared invalid and cancelled by the Warehouse Manager to the Registration Center and BAPPEBTI.
8. In the event that the Warehouse Receipt is burdened with a Guarantee Right, the Warehouse Manager is required to report Warehouse Receipts declared invalid and cancelled by the Warehouse Manager to the Registration Center, BAPPEBTI, and the recipient of the Guarantee Right.
9. The Registration Center updates data based on the report from the Warehouse Manager as referred to in number 6 or 7.

II. WAREHOUSE RECEIPT ISSUANCE PROCEDURE DIAGRAM

1. STORAGE OF GOODS
   Actor: Goods Owner, Warehouse Manager (WM), Commodity Quality Conformity Assessment Institution (LPK), Registration Center (Pusreg)

No. | Activity | Actor | Standard | Description ---|---|---|---|--- a | Goods Owner or their proxy submits storage request (Form SRG-OPR.46) | Goods Owner | Form SRG-OPR.46 | - b | WM accepts request and makes Goods Management Agreement (SPPB) between Storer and WM (Form SRG-OPR.47) | WM | Form SRG-OPR.46, Example Form SRG-OPR.47 | - c | Signing of Goods Management Agreement (SPPB) between Storer and WM | Storer & WM | Example Form SRG-OPR.47 | - d | Goods Owner or their proxy notifies plan to enter goods via Notification of Plan for Goods Entry (Form SRG-OPR.48) | Goods Owner | Form SRG-OPR.48 | At Latest 1 (one) day before entry e | WM prepares stevedores and submits Conformity Assessment Request to LPK (Form SRG-OPR.49) | WM | Form SRG-OPR.48, Form SRG-OPR.49 | - f | LPK conducts conformity assessment for goods quality based on Request Letter for Quality Conformity Assessment for Goods | LPK | Form SRG-OPR.49, LPK Conformity Assessment Result | - g | If goods meet requirements, goods are accepted by WM; if not, goods are returned to Goods Owner | WM/LPK | LPK Conformity Assessment Result | Match/Not Match h | WM conducts unloading, weighing, and signing of Goods Receipt Minutes (Form SRG-OPR.50) | WM | LPK Conformity Assessment Result, Form SRG-OPR.50 | - i | WM inputs data on amount of goods entered according to BABM via SRG-Online, simultaneously verifying quality data according to conformity assessment result documents | WM | Form SRG-OPR.50; LPK Conformity Assessment Result | - j | WM insures goods stored in SRG warehouse | WM | Insurance Policy | Insurance can include protection against risks of fire, loss/theft, flooding, etc.

2. ISSUANCE OF WAREHOUSE RECEIPTS
   Actor: Goods Owner, Warehouse Manager (WM), Commodity Quality Conformity Assessment Institution (LPK), Registration Center (Pusreg)

No. | Activity | Actor | Standard | Description ---|---|---|---|--- a | WM verifies value of goods using price reference | WM | - | - b | WM inputs data for Warehouse Receipt on SRG-Online then requests security code for Warehouse Receipt from Pusreg via SRG-Online | WM | LPK Conformity Assessment Result; Insurance Policy for Goods | - c | Pusreg verifies data (Legality of WM, Legality of LPK, Legality of Warehouse, Type of Goods, Insurance Policy, Storage Period of Goods, and Value of Goods) | Pusreg | - | - d | If requirements are not met, Pusreg sends notification that Security Code cannot be provided along with reasons. | Pusreg | - | - e | If based on verification results requirements are met, Pusreg issues Security Code. WM receives security code and sends confirmation that Security Code has been received | Pusreg/WM | Security Code | - f | WM prints Warehouse Receipt, and signs Warehouse Receipt (WR) together with Goods Owner & hands over WR | WM | Security Code, SRG-OPR.51A for WR to Order and SRG-OPR.51.B for WR to Bearer | - g | WM notifies Pusreg that WR has been issued | WM | - | - h | Pusreg registers WR | Pusreg | Form SRG-OPR.52 | - i | Pusreg provides user identity (userid) and secret access code (password) directly to each Warehouse Receipt Holder | Pusreg | Form SRG-OPR.52, Form SRG-OPR.52 | -

3. ISSUANCE OF REPLACEMENT WAREHOUSE RECEIPTS
   Actor: Warehouse Receipt Holder / Recipient of Guarantee Right, Warehouse Manager, Supervisory Body, Registration Center

No. | Activity | Actor | Standard | Description ---|---|---|---|--- a | Warehouse Receipt Holder (WR) or recipient of Guarantee Right (GR) submits request for issuance of Replacement WR to Warehouse Manager (WM) using Form SRG-OPR.53 | WR Holder/GR | Form SRG-OPR.53 | - b | Check reasons for request and verify authenticity of applicant to Pusreg. If invalid, WM submits rejection of issuance of Replacement WR along with reasons | WM | Form SRG-OPR.53 | - c | Report to Supervisory Body and Registration Center (Pusreg) that there is a request for issuance of Replacement WR | WM | - | - d | WM requests Security Code for Replacement WR from Pusreg | WM | - | - e | Pusreg verifies:

1. Authenticity of WR Holder;
2. WR Period;
3. Value of Goods. | Pusreg | Form SRG-OPR.53 | -
   f | Pusreg notifies that Security Code cannot be provided with reasons. WM corrects errors and requests Security Code again | Pusreg | Reason for Rejection | - g | Pusreg sends Security Code to WM | Pusreg | Security Code | - h | WM declares damaged WR invalid by stamping "Warehouse Receipt Invalid" | WM | - | -

(Note: The provided document text ends abruptly at item h of section 3. The translation reflects the available text exactly as provided.)