Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 3 of 2017 Concerning Procedures for Granting Approval as a Commodity Auction Market Operator Using the Integrated Commodity Auction Market System

REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER 3 OF 2017 CONCERNING PROCEDURES FOR GRANTING APPROVAL AS A COMMODITY AUCTION MARKET OPERATOR USING THE INTEGRATED COMMODITY AUCTION MARKET SYSTEM

BY THE GRACE OF THE MOST HIGH GOD,

THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY,

Considering: that in order to ensure administrative order and legal certainty in the implementation of granting approval as a Commodity Auction Market Operator, it is necessary to establish a Regulation of the Head of the Commodity Futures Trading Regulatory Agency concerning Procedures for Granting Approval as a Commodity Auction Market Operator Using the Integrated Commodity Auction Market System;

Recalling:

1. Law Number 32 of 1997 concerning 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 concerning Amendments to Law Number 32 of 1997 concerning Commodity Futures Trading (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 7 of 2014 concerning Trade (State Gazette of the Republic of Indonesia Year 2014 Number 45, Supplement to the State Gazette of the Republic of Indonesia Number 5512);
3. Law Number 32 of 2004 concerning Regional Government (State Gazette of the Republic of Indonesia Year 2004 Number 125, Supplement to the State Gazette of the Republic of Indonesia Number 4437) as amended by Law Number 12 of 2008 concerning the Second Amendment to Law Number 32 of 2004 concerning Regional Government (State Gazette of the Republic of Indonesia Year 2001 Number 78);
4. Presidential Regulation Number 7 of 2015 concerning the Organization of State Ministries (State Gazette of the Republic of Indonesia Year 2015 Number 8);
5. Presidential Regulation Number 48 of 2015 concerning the Ministry of Trade (State Gazette of the Republic of Indonesia Year 2015 Number 90);
6. Minister of Trade Regulation Number 08/M-DAG/PER/2/2016 concerning the Organization and Work Structure of the Ministry of Trade (State News of the Republic of Indonesia Year 2016 Number 202);
7. Minister of Trade Regulation Number 86/M-DAG/PER/12/2016 concerning Licensing Procedures in the Field of Online Trade and Electronic Signatures (Digital Signature) (State News of the Republic of Indonesia Year 2016 Number 2008);
8. Head of the Commodity Futures Trading Regulatory Agency Regulation Number 5 of 2016 concerning the Implementation of Commodity Auction Markets Using the Integrated Commodity Auction Market System (State News of the Republic of Indonesia Year 2016 Number 1529);
9. Minister of Industry and Trade of the Republic of Indonesia Decision Number 650/MPP/KEP/10/2004 concerning Provisions for the Implementation of Auction Markets with Forward Delivery of Agro Commodities;

DECIDING:

To Establish: A REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY CONCERNING PROCEDURES FOR GRANTING APPROVAL AS A COMMODITY AUCTION MARKET OPERATOR USING THE INTEGRATED COMMODITY AUCTION MARKET SYSTEM.

Article 1
The process of granting approval as a Commodity Auction Market Operator is conducted online through the Integrated Commodity Auction Market System.

Article 2
The processing time for granting approval as a Commodity Auction Market Operator as referred to in Article 1 is 20 (twenty) working days from the date the documents are declared complete and correct.

Article 3
The Standard Operating Procedure (SOP) for the service of granting approval as a Commodity Auction Market Operator as referred to in Article 1 is contained in the Appendix which is an integral part of this Head of Agency Regulation.

Article 4
This Head of Agency Regulation shall come into force on the date of its promulgation.

APPENDIX
REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER 3 OF 2017 CONCERNING PROCEDURES FOR GRANTING APPROVAL AS A COMMODITY AUCTION MARKET OPERATOR USING THE INTEGRATED COMMODITY AUCTION MARKET SYSTEM

STANDARD OPERATING PROCEDURE (SOP)
PROCEDURES FOR GRANTING APPROVAL AS A COMMODITY AUCTION MARKET OPERATOR USING THE INTEGRATED COMMODITY AUCTION MARKET SYSTEM

A. Description
The existence of Commodity Auction Markets emerges as an effort to streamline the agricultural commodity trade chain, which tends to benefit certain parties (middlemen). Commodity Auction Markets can also be utilized as a solution for transparent and fair price formation, thereby serving as a price reference/anchor. The Commodity Futures Trading Regulatory Agency (Bappebti), as the supervising and overseeing agency for Commodity Auction Markets, has the task, among others, of granting approval to Commodity Auction Market institutions, namely Operators and Clearing and Guarantee Institutions for Auction Markets. Referring to provisions in Laws, Ministerial Regulations, and Head of Agency Regulations related to Commodity Auction Markets, a Standard Operating Procedure for Processing Applications for Approval as a Commodity Auction Market Operator has been created.

B. Related Parties
Business Actors, UPTP II Counter Staff, Staff, Head of the Sub-division for Strengthening Commodity Auction Markets, Head of the Division for Strengthening and Supervision of Commodity Auction Markets, Head of the Bureau for Guidance and Supervision of SRG and PLK, Infrastructure and Facility Inspection Team, Head of the Bureau for Guidance and Development of Markets, and Head of Bappebti.

C. Forms/Documents Used
Application Letter and Supporting Documents according to Requirements.

D. Documents Generated Include:

1. Decision Letter (SK) of Approval and Approval Certificate with wet signature;
2. Decision Letter (SK) of Approval and Approval Certificate with Digital Signature; and
3. Letter of Approval for Regulations and House Rules (PTT).

E. Work Procedures as follows:

1. Business Actors enter the INATRADE portal at http://inatrade.kemendag.go.id and register by filling out the provided form;
2. INATRADE Staff verify the data submitted by Business Actors;
3. Business Actors enter the Integrated Commodity Auction Market System at http://plk.bappebti.go.id and log in using the access rights already held by the business actor to perform the registration process. Subsequently, fill out the application form and upload documents according to procedures/requirements;
4. Administrative Staff enter http://plk.bappebti.go.id and log in using their access rights. Then, download the application form and supporting documents for the service application and perform an examination (checklist) on the completeness of the application data, then create a recommendation. The Administrative Staff's recommendation is:
   a. Incomplete documents:
   1. The business actor must complete the missing documents;
   2. The completed documents are re-uploaded through the Integrated Commodity Auction Market System; and
   3. Administrative Staff re-examine the uploaded documents,
      b. Complete documents:
      The process continues to the Processing Officer level (Sub-division Head/Kasub),
5. Processing Officer (Sub-division Head/Kasub) enters http://plk.bappebti.go.id and logs in using their access rights, then re-examines the validity of the application form and supporting documents. Then, create a recommendation result. The Processing Officer's (Kasub) recommendation can be:
   a. Documents not yet compliant:
   1. The business actor must correct the non-compliant documents;
   2. The corrected documents are uploaded through the Integrated Commodity Auction Market System; and
   3. The Processing Officer (Kasub) re-examines the uploaded documents,
      b. Documents compliant:
   4. Create a draft forwarding letter for PTT; and
   5. The process continues to the Processing Officer level (Division Head/Kabag),
6. Processing Officer (Division Head/Kabag) initials the forwarding letter for PTT;
7. Validator (Bureau Head) signs and sends the PTT document to the Bureau for Guidance and Development of Markets;
8. Head of the Bureau for Guidance and Development of Markets discusses the PTT. The result of the PTT discussion can be:
   a. PTT not yet compliant:
   1. The business actor must correct the PTT according to input in the PTT discussion;
   2. The PTT correction is submitted to the Head of the Bureau for Guidance and Development of Markets; and
   3. The PTT discussion process is conducted,
      b. PTT compliant:
   4. Head of Bappebti grants approval or rejection of PTT; and
   5. The process continues to the Processing Officer (Division Head/Kabag),
9. Processing Officer (Division Head/Kabag) enters http://plk.bappebti.go.id and logs in using their access rights, then creates approval based on the recommendation result. The Decision of the Processing Officer (Kabag) can be:
   a. Not Approved (if documents are incomplete/incorrect or Head of Bappebti rejects PTT):
   1. Processing officer (Kasub) creates a letter of rejection of approval;
   2. Processing Officer (Kabag) examines the letter of rejection of approval;
   3. Validator (Bureau Head) initials the letter of rejection of the approval application;
   4. Coordinator of Executors signs the letter of rejection of approval; and
   5. Business Actor receives the letter of rejection of approval,
      b. Approved (if documents are complete/correct and Head of Bappebti approves PTT):
      The process continues to the Validator level (Bureau Head),
10. Validator (Bureau Head) forms the Infrastructure and Facility Inspection Team;
11. Administrative Staff enters the Integrated Commodity Auction Market System and creates a draft Letter of Assignment for Infrastructure and Facility Inspection;
12. Processing Officer (Sub-division Head/Kasub) examines the Letter of Assignment for Infrastructure and Facility Inspection;
13. Processing Officer (Division Head/Kabag) examines the Letter of Assignment;
14. Validator approves via the system and signs the Letter of Assignment;
15. The Inspection Team conducts the Infrastructure and Facility Inspection;
16. The Inspection Team creates the Inspection Minutes (BAP) and creates a recommendation. The result of the Inspection Team's recommendation can be:
    a. Infrastructure and Facilities not yet compliant:
    1. Administrative Staff creates a draft letter of infrastructure/facility deficiencies;
    2. Processing Officer (Kasub) examines the letter of infrastructure/facility deficiencies;
    3. Processing Officer (Kabag) initials the letter of infrastructure/facility deficiencies; and
    4. Validator (Bureau Head) signs the letter of infrastructure/facility deficiencies,
    5. Business Actor is asked to complete the infrastructure/facility deficiencies. The business actor has possibilities:
       a) Unable to meet infrastructure/facility deficiencies:
       i. Processing Officer (Kasub) studies the result of the recommendation from the Infrastructure and Facility Inspection;
       ii. Processing Officer (Kasub) creates a letter of rejection of approval;
       iii. Processing Officer (Kabag) examines the letter of rejection of approval;
       iv. Validator (Bureau Head) initials the letter of rejection of the approval application;
       v. Coordinator of Executors signs the letter of rejection of approval; and
       vi. Business Actor receives the letter of rejection of approval,
       b) Able to meet infrastructure/facility deficiencies:
       i. Validator (Bureau Head) receives information from the business actor;
       ii. Further infrastructure/facility inspection is conducted;
       iii. If the result of the further infrastructure/facility inspection still does not meet requirements, the process continues with the condition that the business actor is "unable to meet infrastructure/facility deficiencies"; and
       iv. If the result of the further infrastructure/facility inspection meets requirements, the process continues to the level of Processing Officer (Kasub) and Administrative Staff,
       b. Infrastructure and Facilities compliant: process continues to the level of Processing Officer (Kasub) and Administrative Staff,
17. Administrative Staff creates and prints the Decision Letter (SK) of Approval and Certificate;
18. Processing Officer (Sub-division Head/Kasub) examines the Decision Letter (SK) of Approval and Certificate, then submits it to the Processing Officer (Division Head/Kabag);
19. Processing Officer (Division Head/Kabag) examines the Decision Letter (SK) of Approval and Certificate, then hands it over to the Validator (Bureau Head);
20. Validator (Bureau Head) examines the documents and draft Decision Letter (SK) of Approval and Certificate to ensure that the documents are substantively correct and in accordance with applicable policies/regulations;
21. Validator (Bureau Head) initials the draft Decision Letter (SK) of Approval and Certificate, then hands it over to the Coordinator of Executors (Head of Bappebti) for signature;
22. Coordinator of Executors (Head of Bappebti) ensures the correctness and conformity of the Decision Letter (SK) of Approval and Certificate with applicable policies/regulations, then signs the documents, which are subsequently handed over to Administrative Staff. The Business Actor will obtain documents in the form of:
    a. Printed copy with the following procedure:
    1. Administrative Staff receives the Decision Letter (SK) of Approval and Certificate signed by the Coordinator of Executors (Head of Bappebti);
    2. Administrative Staff gives the Decision Letter (SK) of Approval and Certificate to the UPTP Counter Staff so that it can be picked up by the Business Actor, then the UPTP Counter Staff sends an email notification;
    3. Business Actor picks up the issued Decision Letter (SK) of Approval and Certificate by showing the pickup notification sent via email;
    4. UPTP Counter Staff examines the pickup notification; and
    5. UPTP Counter Staff creates a receipt and hands over the Decision Letter (SK) of Approval and Certificate,
       b. Electronic copy with the procedure for the Business Actor to download the Decision Letter (SK) of Approval and Certificate through the Integrated Commodity Auction Market System.

SERVICE LEVEL ARRANGEMENT (SLA)
FOR THE APPROVAL SERVICE OF COMMODITY AUCTION MARKET OPERATORS

1. Requirements
1.1. New Application
A. For Provincial/Regency/City Offices
1. Organizational structure, work structure, job descriptions, regulations and house rules (PTT), Standard Operational Procedure (SOP for Member Acceptance, SOP for Transactions, SOP for Resolution of Payment Failures and Delivery Failures), and IT Facilities;
2. Draft/Proposal of agreement between the Commodity Auction Market Operator and Forward Delivery with the Clearing and Guarantee Institution for Forward Delivery Auction Markets; and
3. Statement of completeness of the Implementation of Commodity Auction Markets with Forward Delivery made using Form Number PL-FRM.III.01.C.
B. For Business Entities in the Form of Cooperatives
1. Deed of establishment of the Cooperative and its amendments according to applicable regulations;
2. Copy of Cooperative Taxpayer Identification Number (NPWP);
3. 3 (three) year business plan including organizational structure, work structure, job descriptions, regulations and house rules (PTT), Standard Operational Procedure (SOP for Member Acceptance, SOP for Transactions, SOP for Resolution of Payment Failures and Delivery Failures), and IT facilities;
4. Draft/Proposal of agreement between the Commodity Auction Market Operator and Forward Delivery with the Clearing and Guarantee Institution for Forward Delivery Auction Markets;
5. List of names and data of Cooperative managers and supervisors including:
a. Copy of ID Card/Other Identity; b. Curriculum Vitae;
c. Copy of final formal education diploma; and
d. 4 (four) sheets of latest color passport photos size 4x6,
6. Cooperative Data:
a. Articles of Association; and b. Organizational structure.
7. Statement letter from managers and supervisors of the Commodity Auction Market Operator with Forward Delivery stating:
a. Competent to perform legal acts; b. Never declared bankrupt or become a manager/supervisor declared at fault causing a Cooperative to be declared bankrupt; and
c. Never committed disgraceful acts or punished for proven criminal offenses in the financial field,
The above statement letter is made using Form Number PL-FRM.III.01.A;
8. Statement of completeness of the Commodity Auction Market Operator with Forward Delivery made using Form Number PL-FRM.III.01.C; and
9. List of questions regarding the integrity of the applicant (Cooperative Manager) made using Form Number PL-FRM.III.01.D.
C. For Business Entities in the Form of Limited Liability Company (PT)
1. Deed of establishment of the Company and its amendments which have been approved by the Ministry of Law and Human Rights;
2. Copy of Company Taxpayer Identification Number (NPWP);
3. 3 (three) year business plan including organizational structure, work structure, job descriptions, regulations and house rules (PTT), Standard Operational Procedure (SOP for Member Acceptance, SOP for Transactions, SOP for Resolution of Payment Failures and Delivery Failures), and IT facilities;
4. Draft/Proposal of agreement between the Commodity Auction Market Operator and Forward Delivery with the Clearing and Guarantee Institution for Forward Delivery Auction Markets;
5. List of names and data of Board of Directors members and Board of Commissioners members of the company including:
a. Copy of ID Card/Other Identity; b. Curriculum Vitae;
c. Copy of final formal education diploma; and
d. 4 (four) sheets of latest color passport photos size 4x6.
6. PT Data:
a. Articles of Association; and b. Organizational structure.
7. Statement letter from Directors and Commissioners of the Commodity Auction Market Operator with Forward Delivery stating:
a. Competent to perform legal acts; b. Never declared bankrupt or become a Director/Commissioner declared at fault causing a company to be declared bankrupt; and
c. Never committed disgraceful acts or punished for proven criminal offenses in the financial field,
The above statement letter is made using Form Number PL-FRM.III.01.A;
8. List of questions regarding the integrity of the applicant (Directors, Board of Commissioners, and shareholders) made using Form Number PL-FRM.III.01.D;
9. Statement letter from the Director that the Commodity Auction Market Operator with Forward Delivery for business entities in the form of Limited Liability Company (PT) is not controlled, directly or indirectly, by individuals who:
a. Have committed disgraceful acts in the economic field; b. Have been punished for proven criminal offenses;
c. Do not have good ethics and morality,
The above statement letter is made using Form Number PL-FRM.III.01.B; and
10. Statement of completeness of the Commodity Auction Market Operator with Forward Delivery made using Form Number PL-FRM.III.01.C.
D. For Regional-Owned Enterprises (BUMD)
1. Deed of BUMD and its amendments regulated by applicable regulations;
2. Copy of Company Taxpayer Identification Number (NPWP);
3. 3 (three) year business plan including organizational structure, work structure, job descriptions, regulations and house rules (PTT), Standard Operational Procedure (SOP for Member Acceptance, SOP for Transactions, SOP for Resolution of Payment Failures and Delivery Failures), and IT facilities;
4. Draft/Proposal of agreement between the Commodity Auction Market Operator and Forward Delivery with the Clearing and Guarantee Institution for Forward Delivery Auction Markets;
5. List of names and data of BUMD Managers and Supervisors including:
a. Copy of ID Card/Other Identity; b. Curriculum Vitae;
c. Copy of final formal education diploma; and
d. 4 (four) sheets of latest color passport photos size 4x6,
6. BUMD Data:
a. Articles of Association; and b. Organizational structure,
7. Statement letter from managers and supervisors of the Commodity Auction Market Operator with Forward Delivery stating:
a. Competent to perform legal acts; b. Never declared bankrupt or become a manager/supervisor declared at fault causing a BUMD to be declared bankrupt; and
c. Never committed disgraceful acts or punished for proven criminal offenses in the financial field,
The above statement letter is made using Form Number PL-FRM.III.01.B;
8. List of questions regarding the integrity of the applicant (managers and supervisors) made using Form Number PL-FRM.III.01.D;
9. Statement letter from Managers that the Commodity Auction Market Operator with Forward Delivery for business entities in the form of BUMD is not controlled, directly or indirectly, by individuals who:
a. Have committed disgraceful acts in the economic field; b. Have been punished for proven criminal offenses;
c. Do not have good ethics and morality,
The above statement letter is made using Form Number PL-FRM.III.01.B; and
10. Statement of completeness of the Commodity Auction Market Operator with Forward Delivery made using Form Number PL-FRM.III.01.C.
1.2. Change of Name/Address
To report a Change of Name/Address of the Commodity Auction Market Operator with Forward Delivery, the Auction Operator must first fill out Form Number PL-FRM.III.08, and thereafter must meet the following requirements:
A. For Provincial/Regency/City Offices
1. Organizational structure, work structure, job descriptions, regulations and house rules (PTT), Standard Operational Procedure (SOP for Member Acceptance, SOP for Transactions, SOP for Resolution of Payment Failures and Delivery Failures), and IT Facilities; and
2. Statement of completeness of the Implementation of Commodity Auction Markets with Forward Delivery made using Form Number PL-FRM.III.01.C;
B. For Business Entities in the Form of Cooperatives:
1. Deed of establishment of the Cooperative and its amendments according to applicable regulations;
2. Copy of Cooperative Taxpayer Identification Number (NPWP);
3. 3 (three) year business plan including organizational structure, work structure, job descriptions, regulations and house rules (PTT), Standard Operational Procedure (SOP for Member Acceptance, SOP for Transactions, SOP for Resolution of Payment Failures and Delivery Failures), and IT facilities;
4. Statement of completeness of the Implementation of Commodity Auction Markets with Forward Delivery made using Form Number PL-FRM.III.01.C.
C. For Business Entities in the Form of Limited Liability Company (PT):
1. Deed of establishment of the company and its amendments which have been approved by the Ministry of Law and Human Rights;
2. Copy of Company Taxpayer Identification Number (NPWP);
3. 3 (three) year business plan including organizational structure, work structure, job descriptions, Regulations and House Rules (PTT), Standard Operational Procedure (SOP for Member Acceptance, SOP for Transactions, SOP for Resolution of Payment Failures and Delivery Failures), and IT facilities;
4. Statement of completeness of the Commodity Auction Market Operator with Forward Delivery made using Form Number PL-FRM.III.01.C;
D. For Regional-Owned Enterprises (BUMD):
1. Deed of establishment of BUMD and its amendments according to applicable regulations;
2. Copy of Company Taxpayer Identification Number (NPWP);
3. 3 (three) year business plan including organizational structure, work structure, job descriptions, Regulations and House Rules (PTT), Standard Operational Procedure (SOP for Member Acceptance, SOP for Transactions, SOP for Resolution of Payment Failures and Delivery Failures), and IT facilities; and
4. Statement of completeness of the Commodity Auction Market Operator with Forward Delivery made using Form Number PL-FRM.III.01.C.

2. Processing
2.1. Unit: Bureau for Guidance and Supervision of SRG and PLK – Bappebti
2.2. Signatory: Head of Bappebti
2.3. Validity Period: As long as the Commodity Auction Market Operator remains active in its activities.

3. Regulations
3.1. Number: 03/BAPPEBTI/PER-PL/01/2014
Date: January 15, 2014
Concerning: Approval of Commodity Auction Market Operators with Forward Delivery

4. Service Level Arrangement
4.1. Electronic Process
A. Document Completion: 20 Days after documents are complete and correct B. Conditions:
1. Document requirements are complete and...