Revocation of OJK Circular Letter No. 22/SEOJK.04/2015 Regarding Other Conditions as Significantly Fluctuating Market Conditions in Share Repurchase by Issuers or Public Companies

To:
Directors of Issuers and Public Companies

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 5 /SEOJK.04/2017 CONCERNING THE REVOCATION OF CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 22/SEOJK.04/2015 CONCERNING OTHER CONDITIONS AS SIGNIFICANTLY FLUCTUATING MARKET CONDITIONS IN THE IMPLEMENTATION OF SHARE REPURCHASE BY ISSUERS OR PUBLIC COMPANIES

In view of Financial Services Authority Regulation Number 2/POJK.04/2013 dated August 23, 2013 concerning Share Repurchase by Issuers or Public Companies in Significantly Fluctuating Market Conditions (State Gazette of the Republic of Indonesia Year 2013 Number 143, Supplement to the State Gazette of the Republic of Indonesia Number 5439), hereinafter referred to as POJK Number 2/POJK.04/2013, and Financial Services Authority Circular Letter Number 22/SEOJK.04/2015 dated August 21, 2015 concerning Other Conditions as Significantly Fluctuating Market Conditions in the Implementation of Share Repurchase by Issuers or Public Companies, hereinafter referred to as SEOJK Number 22/SEOJK.04/2015, as well as considering the general economic and market conditions at present, it is necessary to establish the revocation of SEOJK Number 22/SEOJK.04/2015 in this Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

1. That based on SEOJK Number 22/SEOJK.04/2015, Other Conditions as Significantly Fluctuating Market Conditions have been established as referred to in Article 1 number 1 letter b of POJK Number 2/POJK.04/2013, so that to provide economic stimulus and to reduce the impact of significantly fluctuating market conditions, Issuers or Public Companies may conduct share repurchases based on the mechanism regulated in POJK Number 2/POJK.04/2013.

2. That stock trading conditions on the Indonesia Stock Exchange since the issuance of SEOJK Number 22/SEOJK.04/2015 are no longer experiencing pressure, as reflected by market indicators:
   a. The Composite Stock Price Index over the last 6 (six) months calculated from July 11, 2016 to January 9, 2017 experienced an increase of 247.34 points or 4.88% (four point eight eight percent) and continues to show an upward trend to date. b. The volatility level of the Composite Stock Price Index viewed from the Standard Deviation Movement value for the period from July 11, 2016 to January 9, 2017 has decreased and is currently in the range of 0.51% (zero point five one percent) to 1.33% (one point three three percent), lower than the period from August to December 2015 which was in the range of 1.1% (one point one percent) to 1.98% (one point nine eight percent).

3. That the Crisis Management Protocol (PMK) indicators for the stock market during the period from July 11, 2016 to January 9, 2017, although they once crossed the Normal Ordinary condition threshold on November 14, 2016 (-6.14%), the Capital Market conditions have developed quite well.

4. That the national economy in general shows strengthening.

5. That based on the conditions and developments as referred to in numbers 2, 3, and 4, the market conditions on the Indonesia Stock Exchange are no longer experiencing significant fluctuations.

6. That considering number 5, the designation of other conditions as Significantly Fluctuating Market Conditions in SEOJK Number 22/SEOJK.04/2015 as the basis for Issuers or Public Companies to conduct share repurchases as regulated in POJK Number 2/POJK.04/2013 needs to be revoked.

7. That based on Article 1 number 1 letter b in conjunction with Article 2 of POJK Number 2/POJK.04/2013, the Financial Services Authority establishes the termination of other conditions as mandated in POJK Number 2/POJK.04/2013.

II. DETERMINATION OF REVOCATION OF SEOJK NUMBER 22/SEOJK.04/2015

Based on the considerations as referred to in number I, SEOJK Number 22/SEOJK.04/2015 is revoked and declared invalid.

III. TRANSITIONAL PROVISIONS

Issuers or Public Companies that have implemented information disclosure to the Financial Services Authority and the Indonesia Stock Exchange to conduct share repurchases based on SEOJK Number 22/SEOJK.04/2015 in conjunction with POJK Number 2/POJK.04/2013 but the 3 (three) month period for share repurchase as referred to in POJK Number 2/POJK.04/2013 has not yet expired, may continue such share repurchases until the share repurchase program is completed within a period of 3 (three) months calculated after the Issuer or Public Company submits information disclosure to the Financial Services Authority and the Indonesia Stock Exchange as regulated in POJK Number 2/POJK.04/2013.

IV. CLOSING

This Financial Services Authority Circular Letter takes effect on the date of determination.

Determined in Jakarta on January 19, 2017
EXECUTIVE HEAD
MARKET SUPERVISOR, signed
NURHAIDA

Copy matches the original
Legal Director 1
Legal Department signed
Yuliana