Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 03/BAPPEBTI/PER-PL/01/2014 Concerning Approval of Forward Auction Market Organizers

COMMODITY FUTURES TRADING REGULATORY AGENCY Bappebti Building Floors 3 - 5 No. 172 Kramat Raya Street, Jakarta 10430 Telephone: (021) 31924744 Fax: (021) 31923204 Website: http://www.bappebti.go.id

REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY NUMBER: 03/BAPPEBTI/PER-PL/01/2014 CONCERNING APPROVAL OF FORWARD AUCTION MARKET ORGANIZERS

BY THE GRACE OF GOD THE ALMIGHTY

THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY,

Considering: a. that in order to support the acceleration of economic growth in the agro-commodity industry and trade sector, it is necessary to create a business climate that supports the creation of efficiency in agro-commodity trade;

b. that in order to support the creation of efficiency in agro-commodity trade as referred to in letter a, it is necessary to provide the widest possible business opportunities for Forward Auction Market Organizers and to improve the Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 01/BAPPEBTI/PER-PL/08/2010 concerning Approval of Forward Auction Market Organizers;

c. that based on the considerations referred to in letters a and b, it is necessary to establish a Regulation of the Head of the Commodity Futures Trading Regulatory Agency;

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 (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 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 (State Gazette of the Republic of Indonesia Year 2001 Number 78, Supplement to the State Gazette of the Republic of Indonesia Number 4437);

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Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number: 03/BAPPEBTI/PER-PL/01/2014

3. Government Regulation Number 9 of 1999 concerning the Implementation of Commodity Futures Trading (State Gazette of the Republic of Indonesia Year 1999 Number 16, Supplement to the State Gazette of the Republic of Indonesia Number 3805);

4. Government Regulation Number 38 of 2007 concerning the Division of Government Affairs Between the Central Government, Provincial Regional Governments, and Regency/City Regional Governments (State Gazette of the Republic of Indonesia Year 2007 Number 82, Supplement to the State Gazette of the Republic of Indonesia Number 4737);

5. Presidential Decree Number 84/P of 2009 concerning the Formation of the United Indonesia Cabinet II as amended by Presidential Decree Number 59/P of 2011;

6. Presidential Regulation Number 47 of 2009 concerning the Formation and Organization of State Ministries as amended several times, lastly by Presidential Regulation Number 13 of 2014;

7. Presidential Regulation Number 24 of 2010 concerning 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;

8. Decree of the Minister of Industry and Trade of the Republic of Indonesia Number 650/MPP/Kep/10/2004 concerning Provisions for the Implementation of Forward Auction Markets for Agro-Commodities;

9. Regulation of the Minister of Trade Number 31/M-DAG/PER/7/2010 concerning the Organization and Work Structure of the Ministry of Trade as amended by Regulation of the Minister of Trade Number 57/M-DAG/PER/8/2012;

DECIDES:

To Establish: A REGULATION OF THE HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY CONCERNING APPROVAL OF FORWARD AUCTION MARKET ORGANIZERS.

Article 1

Approval as a Forward Auction Market Organizer may only be granted after meeting the provisions of the Decree of the Minister of Industry and Trade Number 650/MPP/Kep/10/2004 concerning Provisions for the Implementation of Forward Auction Markets for Agro-Commodities and this Regulation of the Head of the Commodity Futures Trading Regulatory Agency.

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Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number: 03/BAPPEBTI/PER-PL/01/2014

Article 2

Activities as a Forward Auction Market Organizer may only be conducted by:

a. Provincial/Regency/City Offices in charge of trade; b. Business entities in the form of Cooperatives; c. Business entities in the form of Limited Liability Companies (PT); or d. Local Government-Owned Enterprises (BUMD).

Article 3

(1) Forward Auction Market Organizers as referred to in Article 2 letter a must meet the following requirements: a. have sufficient facilities to ensure orderly, fair, efficient, and effective auction transactions; b. have Regulations and Bylaws for the Implementation of Forward Auction Markets that have obtained approval from the Head of Bappebti; and c. have cooperation with the Forward Auction Market Clearing and Guarantee Institution to guarantee transaction settlement.

(2) Forward Auction Market Organizers as referred to in Article 2 letters b, c, and d must meet the following requirements: a. have paid-up capital of at least IDR 1,000,000,000.00 (one billion rupiah) for limited liability companies or local government-owned enterprises, or own capital of at least IDR 250,000,000.00 (two hundred fifty million rupiah) for cooperatives; b. have sufficient facilities to ensure orderly, fair, efficient, and effective auction transactions; c. have Regulations and Bylaws for the Implementation of Forward Auction Markets that have obtained approval from the Head of Bappebti; and d. have cooperation with the Forward Auction Market Clearing and Guarantee Institution to guarantee transaction settlement.

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Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number: 03/BAPPEBTI/PER-PL/01/2014

Article 4

(1) Applications for approval as a Forward Auction Market Organizer as referred to in Article 2 letter a must meet the requirements referred to in Article 3 paragraph (1) and be submitted to the Head of Bappebti based on the model of Form Number PL-FRM.III and completed with documents as required in Form Number PL-FRM.III.01 and Number PL-FRM.III.01.C.

(2) Applications for approval as a Forward Auction Market Organizer as referred to in Article 2 letter b must meet the requirements referred to in Article 3 paragraph (2) and be submitted to the Head of Bappebti based on the model of Form Number PL-FRM.III completed with documents as required in Form Number PL-FRM.III.01.A, Number PL-FRM.III.01.C, and Number PL-FRM.III.01.D.

(3) Applications for approval as a Forward Auction Market Organizer as referred to in Article 2 letter c must meet the requirements referred to in Article 3 paragraph (2) and be submitted to the Head of Bappebti based on the model of Form Number PL-FRM.III completed with documents as required in Form Number PL-FRM.III.01.A, PL-FRM.III.01.B, PL-FRM.III.01.C, and Number PL-FRM.III.01.D.

(4) Applications for approval as a Forward Auction Market Organizer as referred to in Article 2 letter d must meet the requirements referred to in Article 3 paragraph (2) and be submitted to the Head of Bappebti based on the model of Form Number PL-FRM.III completed with documents as required in Form Number PL-FRM.III.01.A, PL-FRM.III.01.B, PL-FRM.III.01.C, and Number PL-FRM.III.01.D.

Article 5

(1) The Head of Bappebti conducts an examination of the authenticity of documents according to the originals and an assessment of documents as referred to in Article 4.

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Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number: 03/BAPPEBTI/PER-PL/01/2014

(2) The Head of Bappebti conducts an inspection of physical infrastructure and facilities at the office of the Forward Auction Market Organizer and creates an Inspection Report using Form Number PL-FRM.III.02 for Provincial/Regency/City Offices in charge of trade and Form Number PL-FRM.III.03 for Cooperatives, Limited Liability Companies (PT), or Local Government-Owned Enterprises (BUMD).

(3) The Head of Bappebti grants Approval or Rejection of the application as a Forward Auction Market Organizer no later than 45 (forty-five) working days since the completeness assessment referred to in paragraphs (1) and (2) is fulfilled.

(4) The Head of Bappebti grants Approval as a Forward Auction Market Organizer for Provincial/Regency/City Offices in charge of trade using Form Number PL-FRM.III.04 as contained in the Appendix of this Regulation of the Head of the Commodity Futures Trading Regulatory Agency.

(5) The Head of Bappebti grants Approval as a Forward Auction Market Organizer for business entities in the form of Cooperatives, Limited Liability Companies (PT), or Local Government-Owned Enterprises (BUMD) using Form Number PL-FRM.III.05 as contained in the Appendix of this Regulation of the Head of the Commodity Futures Trading Regulatory Agency.

(6) The Head of Bappebti conveys Rejection of the application for Approval as a Forward Auction Market Organizer using Form Number PL-FRM.III.06 as contained in the Appendix of this Regulation of the Head of the Commodity Futures Trading Regulatory Agency.

Article 6

(1) In the event that a Forward Auction Market Organizer has obtained approval from the Head of Bappebti, the Forward Auction Market Organizer must:

a. prepare detailed records and reports of all activities of Forward Auction Market members related to commodity transactions and commodity possession;

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Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number: 03/BAPPEBTI/PER-PL/01/2014

b. guarantee the confidentiality of the financial position information and business activities of Forward Auction Market members, except if such information is provided in the implementation of implementing regulations;

c. document and properly store all data related to Forward Auction Market activities;

d. disseminate information on commodity prices traded;

e. monitor the activities and financial conditions of Forward Auction Market members and take actions to freeze or terminate members who do not meet financial and reporting requirements, in accordance with implementing regulations; and

f. submit any changes to the Regulations and Bylaws for the Implementation of Forward Auction Markets to obtain prior approval from the Head of Bappebti.

(2) Actions to freeze or terminate Forward Auction Market members as referred to in paragraph (1) letter e must be reported to the Head of Bappebti no later than 7 (seven) days after the freeze or termination action is taken.

Article 7

(1) Changes in the management of Forward Auction Market Organizers in the form of Cooperatives, Limited Liability Companies (PT), and Local Government-Owned Enterprises (BUMD) must be reported to the Head of Bappebti no later than 1 (one) week after the change is valid according to applicable legislation.

(2) Reports of changes in the management of Forward Auction Market Organizers as referred to in paragraph (1) are submitted to the Head of Bappebti using Form Number PL-FRM.III.01.A for business entities in the form of Cooperatives, and Form Number PL-FRM.III.01.A and Number PL-FRM.III.01.D.

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Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number: 03/BAPPEBTI/PER-PL/01/2014

Article 8

(1) Changes in shareholders of Forward Auction Market Organizers in the form of Limited Liability Companies (PT) and Local Government-Owned Enterprises (BUMD) must be reported to the Head of Bappebti no later than 1 (one) week after the change is valid according to applicable legislation.

(2) Reports of changes in shareholders of Forward Auction Market Organizers in the form of Limited Liability Companies (PT) and Local Government-Owned Enterprises (BUMD) as referred to in paragraph (1) are submitted to the Head of Bappebti using Form Number PL-FRM.III.07 and completed with documents as required in Form Number PL-FRM.III.01.A and Number PL-FRM.III.01.D.

Article 9

(1) Changes in the name and address of Forward Auction Market Organizers must be reported to the Head of Bappebti.

(2) Reports of changes in the name and address of Forward Auction Market Organizers as referred to in paragraph (1) are submitted to the Head of Bappebti using Form Number PL-FRM.III.08 and completed with documents as required in Form Number PL-FRM.III.01.C.

Article 10

Forward Auction Market Organizers must submit annual reports on their activities to the Head of Bappebti, the format and content of which will be further regulated by the Head of Bappebti.

Article 11

(1) In the event that a Forward Auction Market Organizer in the form of a Provincial/Regency/City Office in charge of trade is still in the process of meeting the requirements as referred to in Article 3 paragraph (1), the Head of Bappebti grants a 3rd (third) Temporary Approval Extension valid for 1 (one) year.

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Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number: 03/BAPPEBTI/PER-PL/01/2014

(2) Temporary Approval as referred to in paragraph (1) may be granted to Forward Auction Market Organizers after an evaluation is conducted based on the fulfillment of requirements as a Forward Auction Market Organizer annually by the Head of Bappebti.

Article 12

Forward Auction Market Organizers who do not implement the provisions in this Regulation of the Head of the Commodity Futures Trading Regulatory Agency are subject to administrative sanctions in accordance with legislation in the Auction Market sector.

Article 13

With the implementation of this Regulation of the Head of the Commodity Futures Trading Regulatory Agency, the Regulation of the Head of the Commodity Futures Trading Regulatory Agency Number 01/BAPPEBTI/PER-PL/08/2010 concerning Approval of Forward Auction Market Organizers is repealed and declared invalid.

Article 14

This Regulation of the Head of the Commodity Futures Trading Regulatory Agency comes into force as of the date of establishment. To ensure that everyone knows it, it is ordered to promulgate this Regulation of the Head of the Commodity Futures Trading Regulatory Agency by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta On January 15, 2014 HEAD OF THE COMMODITY FUTURES TRADING REGULATORY AGENCY,

[Signature]

SUTRIONO EDI

COPY of this Regulation of the Head of the Commodity Futures Trading Regulatory Agency is sent to:

1. Minister of Trade of the Republic of Indonesia;
2. Deputy Minister of Trade of the Republic of Indonesia;
3. Secretary General of the Ministry of Trade;
4. Inspector General of the Ministry of Trade;
5. Secretaries and Heads of Bureaus within the Bappebti environment.