Second Amendment to Financial Health Regulations for Insurance and Reinsurance Companies

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 5 OF 2023
CONCERNING
THE SECOND AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 71/POJK.05/2016 CONCERNING THE FINANCIAL HEALTH OF INSURANCE COMPANIES AND REINSURANCE COMPANIES BY THE GRACE OF GOD THE ALMIGHTY, THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that in managing risks related to investment placements and maintaining financial health, insurance companies and reinsurance companies must apply the principle of prudence; b. that to implement the provisions of Article 83 paragraph (6) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Services Sector and to mitigate risks over investment placements with related parties and non-related parties to insurance and reinsurance companies, while considering the capital adequacy of insurance and reinsurance companies in bearing risks, it is necessary to adjust the provisions regarding investment placement limits which have been regulated in the Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies as amended by the Financial Services Authority Regulation Number 27/POJK.05/2018 concerning the Amendment to the Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies;

c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning the Second Amendment to the Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies;

Recalling:

1. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Additional 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, Additional State Gazette of the Republic of Indonesia Number 6845);
2. Law Number 40 of 2014 concerning Insurance (State Gazette of the Republic of Indonesia Year 2014 Number 337, Additional State Gazette of the Republic of Indonesia Number 5618) 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, Additional State Gazette of the Republic of Indonesia Number 6845);
3. Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 304, Additional State Gazette of the Republic of Indonesia Number 5994) as amended by the Financial Services Authority Regulation Number 27/POJK.05/2018 concerning the Amendment to the Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2018 Number 243, Additional State Gazette of the Republic of Indonesia Number 6274);

DECIDING:
Establishing: A FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE SECOND AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 71/POJK.05/2016 CONCERNING THE FINANCIAL HEALTH OF INSURANCE COMPANIES AND REINSURANCE COMPANIES.

Article I
Several provisions in the Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 304, Additional State Gazette of the Republic of Indonesia Number 5994) as amended by the Financial Services Authority Regulation Number 27/POJK.05/2018 concerning the Amendment to the Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2018 Number 243, Additional State Gazette of the Republic of Indonesia Number 6274) are amended as follows:

1. The provisions of item 2, item 6, item 14, item 17, item 18, item 19, item 20, item 21, and item 22 of Article 1 are amended and 3 (three) items are added, namely item 23, item 24, and item 25, so that Article 1 reads as follows:

Article 1
In this Financial Services Authority Regulation:

1. Company means an insurance company and a reinsurance company.

2. Insurance Company means a general insurance company and a life insurance company as referred to in Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.

3. General Insurance Company means a company that conducts risk indemnification business services that provide compensation to the insured or policyholder for losses, damages, costs arising, loss of profit, or legal liability to third parties, which may be suffered by the insured or policyholder due to the occurrence of an uncertain event.

4. Life Insurance Company means a company that conducts risk mitigation business services that provide payment to the policyholder, insured, or other entitled parties in the event the insured dies or survives, or other payments to the policyholder, insured, or other entitled parties at a certain time regulated in the agreement, the amount of which has been determined and/or based on the results of fund management.

5. Reinsurance Company means a company that conducts re-indemnification business services against risks faced by Insurance Companies, guarantee companies, or other reinsurance companies.

6. Party means an individual or business entity, whether in the form of a legal entity or not, as referred to in Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.

7. Investment-Linked Insurance Product which is hereinafter referred to as PAYDI is an insurance product that provides at least death risk protection and provides benefits that refer to the investment results of a fund pool specifically formed for the insurance product, whether stated in unit form or not.

8. Liability means obligations as referred to in insurance legislation.

9. Insurance Fund means a pool of funds originating from premiums formed to meet Liabilities arising from issued policies or insurance claims.

10. Permitted Assets are assets that are calculated in the solvency ratio calculation.

11. Minimum Risk-Based Capital which is hereinafter abbreviated as MMBR is the amount of funds needed to anticipate potential losses resulting from deviations in asset and Liability management.

12. Solvency Ratio is the difference between the amount of Permitted Assets minus the amount of Liabilities.

13. Equity is equity based on applicable financial accounting standards in Indonesia.

14. Medium Term Notes which is hereinafter abbreviated as MTN are debt instruments issued by companies without a public offering and have a maturity of 1 (one) to 5 (five) years.

15. Net Premium is gross premium minus commission minus reinsurance premium paid which has been reduced by reinsurance commission received.

16. Guarantee Fund is the asset of an Insurance Company or Reinsurance Company that serves as the last resort to protect the interests of policyholders, insured, or participants, in the event of liquidation of the Insurance Company and Reinsurance Company.

17. Investment Manager means an investment manager as referred to in Law Number 8 of 1995 concerning the Capital Market as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.

18. Bank means a general bank as referred to in Law Number 7 of 1992 concerning Banking as amended several times, lastly by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector and a general sharia bank as referred to in Law Number 21 of 2008 concerning Sharia Banking as amended several times, lastly by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.

19. People's Economy Bank which is hereinafter abbreviated as BPR is a people's economy bank as referred to in Law Number 7 of 1992 concerning Banking as amended several times, lastly by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.

20. Sharia People's Economy Bank which is hereinafter abbreviated as BPRS is a sharia people's economy bank as referred to in Law Number 21 of 2008 concerning Sharia Banking as amended several times, lastly by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.

21. Custodian Bank is a Bank that has obtained approval from the Financial Services Authority to conduct business activities as a custodian.

22. Financial Services Authority which is hereinafter abbreviated as OJK is an independent institution that has the function, duties, and authority for regulation, supervision, examination, and investigation as referred to in Law Number 21 of 2011 concerning the Financial Services Authority as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector.

23. Related Party is an individual or company that has a control relationship with the Company, directly or indirectly, through ownership, management, and/or financial relationships.

24. Investment Recipient Group is 2 (two) or more individuals and/or companies that mutually have a control relationship through ownership, management, and/or financial relationships, which receive investments from the Company and/or issue securities owned by the Company.

25. Sub-fund is a fund formed and managed by the Company with a specific investment strategy to provide benefits linked to investments in PAYDI.

26. The provision of Article 2 is amended so that it reads as follows:

Article 2
(1) To ensure that the Company does not fail to meet the obligations to policyholders and insured, the Company must at all times meet the financial health requirement standards. (2) The measurement of the Company's financial health level as referred to in paragraph (1) includes:
a. Solvency Ratio; b. technical reserves;
c. investment adequacy;
d. Equity; e. Guarantee Fund; f. Permitted Assets; g. insurance assets linked to investment; and h. other provisions related to financial health. (3) When the policy guarantee program is in effect, the provisions regarding the Guarantee Fund as referred to in paragraph (2) letter e only apply to Insurance Companies that do not meet the requirements to become participants in the policy guarantee program and Reinsurance Companies.

3. The provisions of paragraph (2) and paragraph (3) of Article 4 are amended so that they read as follows:

Article 4
(1) The calculation of MMBR as referred to in Article 3 paragraph (1) must take into account risks at least consisting of:
a. credit risk; b. liquidity risk;
c. market risk;
d. insurance risk; and e. operational risk.

(2) In the event that an Insurance Company markets PAYDI, the MMBR as referred to in paragraph (1) must be increased by a certain percentage of the investment funds sourced from Sub-funds. (3) Further provisions regarding the calculation of the MMBR amount as referred to in paragraph (1) and paragraph (2) are determined by the OJK.

4. The provision of paragraph (5) of Article 5 is amended, paragraph (2) letter r of Article 5 is deleted, the Explanation of paragraph (2) letters b, d, s, and t of Article 5 is amended as contained in the article-by-article explanation, and the Explanation of paragraph (2) letter r of Article 5 is deleted, so that Article 5 reads as follows:

Article 5
(1) The Company must apply the principle of prudence in investment placement.
(2) Permitted Assets in the form of investment must be placed in the following types:
a. time deposits at Banks, BPRs, and BPRSs, including deposit on call and deposits with a maturity of less than or equal to 1 (one) month; b. deposit certificates at Banks;
c. shares listed on the stock exchange;
d. corporate bonds listed on the stock exchange; e. MTNs; f. securities issued by the Republic of Indonesia; g. securities issued by countries other than the Republic of Indonesia; h. securities issued by Bank Indonesia;
i. securities issued by multinational institutions of which the Republic of Indonesia is a member or shareholder;
j. mutual funds; k. asset-backed securities;
l. real estate investment funds in the form of collective investment contracts;
m. securities transactions through repurchase agreement (REPO); n. direct participation in limited liability companies whose shares are not listed on the stock exchange; o. land, buildings with strata title rights, or land with buildings, for investment; p. financing through cooperation mechanisms with other Parties in the form of credit granting cooperation (executing); q. pure gold; r. deleted; s. policy loans; t. regional bonds; and/or u. infrastructure investment funds in the form of collective investment contracts. (3) Permitted Assets in the form of investment as referred to in paragraph (2) that can be placed abroad must be in the following types:
a. shares listed on the stock exchange; b. corporate bonds listed on the stock exchange;
c. securities issued by countries other than the Republic of Indonesia;
d. securities issued by multinational institutions of which the Republic of Indonesia is a member or shareholder; e. mutual funds; and/or f. direct participation in companies whose shares are not listed on the stock exchange. (4) Investment types as referred to in paragraph (2) and paragraph (3) also include investment types using sharia principles. (5) The basis for assessing each type of investment as referred to in paragraph (2) to paragraph (4) refers to the financial accounting standards applicable to Companies in Indonesia.

5. The provision of paragraph (2) of Article 5B is deleted so that Article 5B reads as follows:

Article 5B
(1) Provisions regarding the calculation of the MMBR amount for Companies that place Permitted Assets in the form of investment in:
a. regional bonds as referred to in Article 5 paragraph (2) letter t follow the provisions for calculating the MMBR amount for placements of Permitted Assets in the form of investment in corporate bonds listed on the stock exchange as referred to in Article 5 paragraph (2) letter d; and b. infrastructure investment funds in the form of collective investment contracts as referred to in Article 5 paragraph (2) letter u follow the provisions for calculating the MMBR amount for placements of Permitted Assets in the form of investment in real estate investment funds in the form of collective investment contracts as referred to in Article 5 paragraph (2) letter l. (2) Deleted.

6. The provisions of paragraph (1), paragraph (2) letter c, paragraph (4), paragraph (5) letter b, paragraph (6), paragraph (8) letter c, and paragraph (9) of Article 6 are amended, paragraph (2) of Article 6 is added with 2 (two) letters namely letters d and e, and paragraph (8) letter d and paragraph (10) of Article 6 are deleted, so that Article 6 reads as follows:

Article 6
(1) Placements of Permitted Assets in the form of investment in corporate bonds as referred to in Article 5 paragraph (2) letter d must be made in corporate bonds that have an investment grade rating from a securities rating company recognized by the OJK. (2) Placements of Permitted Assets in the form of investment in MTNs as referred to in Article 5 paragraph (2) letter e must meet the following provisions:
a. MTNs are registered at the Indonesia Central Securities Depository; b. MTNs have a monitoring agent that has obtained a license as a trustee from the OJK;
c. MTNs have an AAA rating or the highest investment rating issued by a securities rating company recognized by the OJK;
d. MTNs are guaranteed/backed with collateral/guarantee worth at least 100% (one hundred percent) of the nominal value of the MTN; and e. MTNs are issued by state-owned enterprises or institutions granted special authority based on legislation for the management of central government investments which are guaranteed by the central government. (3) Placements of Permitted Assets in the form of investment in securities issued by multinational institutions of which the Republic of Indonesia is a member or shareholder as referred to in Article 5 paragraph (2) letter i must meet the following provisions:
a. have an investment grade rating from a securities rating company recognized internationally; b. are sold through a public offering; and
c. information regarding the transaction can be accessed in Indonesia.
(4) Placements of Permitted Assets in the form of investment in mutual funds as referred to in Article 5 paragraph (2) letter j must meet the following provisions:
a. for mutual funds offered through a public offering, have obtained an effectiveness statement from the OJK; and b. for limited partnership mutual funds, can only be done to fulfill the investment placement requirements for government securities as referred to in the OJK Regulation regarding the investment of government securities for non-bank financial institutions. (5) Placements of Permitted Assets in the form of investment in asset-backed securities and real estate investment funds in the form of collective investment contracts as referred to in Article 5 paragraph (2) letters k and l must meet the following provisions:
a. have obtained an effectiveness statement from the OJK; b. have an investment grade rating from a securities rating company recognized by the OJK; and
c. are offered through a public offering as regulated in capital market legislation.
(6) Placements of Permitted Assets in the form of investment in repurchase agreements (REPO) as referred to in Article 5 paragraph (2) letter m must meet the following provisions:
a. the result of the Company's financial health assessment based on the latest assessment at the time of the Company's investment placement conducted by the OJK is a composite rating of 1 or a composite rating of 2 as referred to in the OJK Regulation regarding the assessment of the financial health level of non-bank financial service institutions; b. use standardized contracts by the OJK;
c. transactions in the form of buying securities with a promise to sell back at a specified time and price;
d. collateral types are limited to securities issued by the Republic of Indonesia and/or securities issued by Bank Indonesia; e. maturity does not exceed 90 (ninety) days; f. the value of the repurchase agreement (REPO) is at most 80% (eighty percent) of the market value of the pledged securities; and g. repurchase agreement (REPO) transactions are registered at the Indonesia Central Securities Depository or Bank Indonesia Scriptless Securities Settlement System (BI-S4). (7) Placements of Permitted Assets in the form of investment in land, buildings with strata title rights, or land with buildings, for investment, as referred to in Article 5 paragraph (2) letter o must meet the following provisions:
a. are owned and controlled by the Company, proven by land and/or building ownership certificates in the name of the Company; and b. are not placed on land, buildings, or land with buildings that are currently mortgaged, in dispute, or blocked by other Parties. (8) Placements of Permitted Assets in the form of investment in financing through cooperation mechanisms with other Parties in the form of credit granting cooperation (executing) as referred to in Article 5 paragraph (2) letter p must meet the following provisions:
a. are financing companies that have obtained a business license from the OJK; b. the financing company in question is not currently subject to administrative sanctions in the form of business activity restrictions or business activity suspension by the OJK at the start of the cooperation;
c. the result of the financing company's financial health assessment based on the latest assessment conducted by the OJK is a composite rating of 1 or a composite rating of 2 as referred to in the OJK Regulation regarding the assessment of the financial health level of non-bank financial service institutions; and
d. deleted.
(9) Placements of Permitted Assets in the form of investment in pure gold as referred to in Article 5 paragraph (2) letter q must meet the following provisions:
a. meet the specification requirements established by the commodity exchange that has obtained a license from the competent authority; and b. are stored at:

1. Custodian Banks;

2. Other Parties that have obtained a license or approval from the competent authority to provide custody services; or

3. The Company, provided that they are insured with another Company.
   (10) Deleted.

4. The provision of Article 7 is amended so that it reads as follows:

Article 7
In the event that corporate bonds issued by financing companies do not have an investment grade level as referred to in Article 6 paragraph (1), placement can be made with the following provisions:
a. have a rating 1 (one) level below investment grade; and b. the result of the financing company's financial health assessment based on the latest assessment conducted by the OJK is a composite rating of 1 or a composite rating of 2 as referred to in the OJK Regulation regarding the assessment of the financial health level of non-bank financial service institutions.

8. The provisions of paragraph (1) letters b, c, k, and l of Article 11 are amended, 2 (two) paragraphs are added namely paragraph (5) and paragraph (6), paragraph (1) letter q of Article 11 is deleted, and the Explanation of Article 11 is amended, so that Article 11 reads as follows:

Article 11
(1) Limitations on Permitted Assets in the form of investment as referred to in Article 5 paragraph (2) are as follows:
a. investments in time deposits at Banks, including deposit on call and deposits with a maturity of less than or equal to 1 (one) month, for each Bank are at most 20% (twenty percent) of the total investment;

[End of provided text]

b. investments in time deposits at Rural Banks (BPR) and Sharia Rural Banks (BPRS), for each BPR and BPRS, the maximum is 1% (one percent) of the investment amount and in total the maximum is 5% (five percent) of the investment amount;
c. investments in deposit certificates, for each Bank, the maximum is 50% (fifty percent) of the total investment amount in time deposits at Banks as referred to in letter a;
d. investments in shares listed on the securities exchange, for each issuer, the maximum is 10% (ten percent) of the investment amount and in total the maximum is 40% (forty percent) of the investment amount; e. investments in corporate bonds listed on the securities exchange, for each issuer, the maximum is 20% (twenty percent) of the investment amount and in total the maximum is 50% (fifty percent) of the investment amount; f. investments in Medium-Term Notes (MTN) and securities issued by multinational institutions where the Republic of Indonesia is one of the members or shareholders, for each issuer, the maximum is 20% (twenty percent) of the investment amount and in total the maximum is 40% (forty percent) of the investment amount; g. investments in securities issued by countries other than the Republic of Indonesia, for each issuer, the maximum is 10% (ten percent) of the investment amount; h. investments in mutual funds, for each Investment Manager, the maximum is 20% (twenty percent) of the investment amount and in total the maximum is 50% (fifty percent) of the investment amount;
i. investments in asset-backed securities, for each Investment Manager, the maximum is 10% (ten percent) of the investment amount and in total the maximum is 20% (twenty percent) of the investment amount;
j. investments in real estate investment funds in the form of collective investment contracts, for each Investment Manager, the maximum is 10% (ten percent) of the investment amount and in total the maximum is 20% (twenty percent) of the investment amount; k. investments in repurchase agreements (REPO), for each counterparty, the maximum is 2% (two percent) of the investment amount and in total the maximum is 10% (ten percent) of the investment amount;
l. investments in direct participation in limited liability companies whose shares are not listed on the securities exchange, in total the maximum is 10% (ten percent) of the investment amount;
m. investments in land, buildings with strata title (strata title), or land with buildings, for investment purposes, in total the maximum is 20% (twenty percent) of the investment amount; n. investments in land for investment purposes, in total the maximum is 1/3 (one third) of the investment amount as referred to in letter m; o. investments in financing through cooperation mechanisms with other Parties in the form of credit granting cooperation (executing), for each Party, the maximum is 10% (ten percent) of the investment amount and in total the maximum is 20% (twenty percent) of the investment amount; p. investments in pure gold, in total the maximum is 10% (ten percent) of the investment amount; q. deleted; r. investments in policy loans, with the policy loan amount being a maximum of 80% (eighty percent) of the cash value of the relevant policy; s. investments in regional bonds, for each issuer, the maximum is 10% (ten percent) of the investment amount and in total the maximum is 20% (twenty percent) of the investment amount; and/or t. investments in infrastructure investment funds in the form of collective investment contracts, for each Investment Manager, the maximum is 10% (ten percent) of the investment amount and in total the maximum is 20% (twenty percent) of the investment amount.

(2) Placements of Permitted Assets in the form of investments in mutual funds as referred to in Article 5 paragraph (2) letter j, the underlying assets of which are entirely securities issued by the Republic of Indonesia, are exempt from the provisions as referred to in paragraph (1) letter h.

(3) Placements of Permitted Assets in the form of investments in mutual funds as referred to in Article 5 paragraph (2) letter j in the form of limited participation collective investment contracts, for each Investment Manager, the maximum is 10% (ten percent) of the investment amount and in total the maximum is 20% (twenty percent) of the investment amount.

(4) Placements of Permitted Assets in the form of investments as referred to in paragraph (1) letters d, e, f, g, h, i, j, k, s, and t, the total amount is a maximum of 80% (eighty percent) of the investment amount.

(5) Placements of Permitted Assets in the form of investments in:
a. corporate bonds listed on the securities exchange as referred to in Article 5 paragraph (2) letter d; and b. MTN as referred to in Article 5 paragraph (2) letter e, which are issued by institutions given special authority based on statutory regulations for the management of central government investment guaranteed by the central government, are not subject to:

1. limits as referred to in paragraph (1) letters e and f and limits as referred to in paragraph (4); and
2. requirements as referred to in Article 6 paragraph (1) and paragraph (2).

(6) Guarantees by the central government as referred to in paragraph (5) must meet the following requirements:
a. the guarantee is unconditional and irrevocable; and b. it has a minimum term equal to the term of the guaranteed bonds and/or MTN.

9. The provisions of Article 12 are amended to read as follows:

Article 12
(1) The maximum investment limit of the Company on assets other than Sub-funds is set as follows:
a. investments in Related Parties in total a maximum of 10% (ten percent) of the sum of the Company's Equity and subordinated loans; and b. investments in:

1. one Party that is not a Related Party; or
2. one Group of Investment Recipients that is not a Related Party,
   a maximum of 25% (twenty-five percent) of the total investment sourced from other than Sub-funds.

(2) In the event the Company has a Sharia unit, the Company's Equity as referred to in paragraph (1) letter a does not include Equity in the Sharia unit.

(3) Subordinated loans considered for determining the investment limit on Related Parties as referred to in paragraph (1) letter a are set at a maximum of 100% (one hundred percent) of the Company's Equity.

(4) The Company is prohibited from placing investments on assets from other than Sub-funds that cause violations of the maximum investment limit on:
a. Related Parties; and/or b. one Party that is not a Related Party or one Group of Investment Recipients that is not a Related Party, as referred to in paragraph (1).

(5) Determination of violations of the maximum investment limit over assets from other than Sub-funds as referred to in paragraph (4) is determined as follows:
a. by the excess difference of the percentage of the investment value in Related Parties at the time of investment placement against the sum of the Company's Equity and subordinated loans in the last monthly report before the investment placement, minus the percentage as referred to in paragraph (1) letter a, for investment placements in Related Parties; and b. by the excess difference of the percentage of the investment value in one Party that is not a Related Party or one Group of Investment Recipients that is not a Related Party against the total investment at the time of investment placement, minus the percentage as referred to in paragraph (1) letter b, for investment placements in one Party that is not a Related Party or one Group of Investment Recipients that is not a Related Party.

(6) Investments on assets from other than Sub-funds in Related Parties, one Party that is not a Related Party, or one Group of Investment Recipients that is not a Related Party that exceed the maximum investment limit as referred to in paragraph (1) caused by:
a. a decrease in the Company's Equity and/or subordinated loans; b. exchange rate changes;
c. changes in the fair value of assets;
d. business combinations, changes in ownership structure and/or changes in management structure that cause changes in Related Parties, one Party that is not a Related Party, or one Group of Investment Recipients that is not a Related Party; and/or e. changes in statutory regulations, are categorized as exceeding the maximum investment limit and not as violations of the maximum investment limit as referred to in paragraph (4).

(7) Exceeding the maximum investment limit over assets from other than Sub-funds as referred to in paragraph (6) is calculated as follows:
a. by the excess difference of the percentage of investment in Related Parties against the sum of the Company's Equity and subordinated loans recorded on the date of the monthly report, minus the percentage as referred to in paragraph (1) letter a, for investments in Related Parties; and b. by the excess difference of the percentage of investment in one Party that is not a Related Party or one Group of Investment Recipients that is not a Related Party against the total investment sourced other than from Sub-funds recorded on the date of the monthly report, minus the percentage as referred to in paragraph (1) letter b, for investments in one Party that is not a Related Party or one Group of Investment Recipients that is not a Related Party.

(8) In the event the Company makes investment placements in the form of direct participation that exceed the limits as referred to in paragraph (1) and Article 11 paragraph (1) letter l, such investment placements can only be made on financial service institutions supervised by the OJK and after obtaining prior approval from the OJK.

(9) In the event the Company makes investment placements in the form of direct participation as referred to in paragraph (8), the nominal value of assets in the form of direct participation investments that exceed the maximum investment limit is still considered as Permitted Assets.

(10) In the event the Company violates the maximum investment limit as referred to in paragraph (4) and/or exceeds the maximum investment limit as referred to in paragraph (6), the nominal value of assets in the form of investments that exceed the maximum investment limit is not considered as Permitted Assets and the Company is required to:
a. submit an action plan for resolving the violation of the maximum investment limit and/or exceeding the maximum investment limit to the OJK; and b. resolve the violation of the maximum investment limit and/or exceeding the maximum investment limit according to the time target set in the action plan as referred to in letter a.

(11) The obligations as referred to in paragraph (10) letters a and b are exempted for investment placements in the form of direct participation as referred to in paragraph (8).

(12) Further provisions regarding the procedure for requesting approval from the OJK as referred to in paragraph (8) are determined by the OJK.

10. The provisions of Article 13 are amended to read as follows:

Article 13
(1) Related Parties include:
a. individuals or companies that are controllers of the Company; b. legal entities where the Company acts as the controller of such legal entities;
c. companies that have the same controller as the Company;
d. members of the Board of Directors, members of the Board of Commissioners, or equivalents, and executive officials of the Company; e. parties having family relationships due to marriage or descent up to the second degree, horizontally or vertically:

1. from individuals who are controllers of the Company as referred to in letter a; and/or
2. from members of the Board of Directors and/or members of the Board of Commissioners or equivalents of the Company as referred to in letter d;
   f. members of the Board of Directors and/or members of the Board of Commissioners or equivalents of companies as referred to in letter a, letter b, and/or letter c; g. companies that have members of the Board of Directors and/or members of the Board of Commissioners or equivalents who are members of the Board of Commissioners or equivalents of the Company; h. companies where 50% (fifty percent) or more of the members of the Board of Directors and/or members of the Board of Commissioners or equivalents are directors and/or commissioners or equivalents of companies as referred to in letter a, letter b, and/or letter c;
   i. companies that:
3. members of the Board of Directors, members of the Board of Commissioners, or equivalents and/or executive officials of the Company as referred to in letter d act as controllers; and
4. members of the Board of Directors and/or members of the Board of Commissioners or equivalents of parties as referred to in letter a, letter b, and/or letter c act as controllers;
   j. collective investment contracts where the Company and/or parties as referred to in letter a to letter i own 10% (ten percent) or more of the shares in the investment manager of such collective investment contracts, except in the event that such collective investment contract has underlying assets entirely consisting of securities issued by the Republic of Indonesia and securities issued by Bank Indonesia; k. companies that have financial relationships with the Company and/or parties as referred to in letter a to letter i;
   l. investment recipients who are individuals or companies that have financial relationships through the provision of guarantees to parties as referred to in letter a to letter k;
   m. investment recipients that have financial relationships through guarantees provided by parties as referred to in letter a to letter k; and n. other companies in which there is an interest in the form of share ownership of 10% (ten percent) or more individually or jointly, from parties as referred to in letter e.

(2) Controllers as referred to in paragraph (1) letter a, in the event of individuals or companies directly or indirectly:
a. own 10% (ten percent) or more of the Company's shares individually or jointly; b. hold options or other rights to own shares that if exercised cause such parties to control and/or own 10% (ten percent) or more of the Company's shares individually or jointly;
c. cooperate or take concerted actions to achieve common goals in controlling the Company (acting in concert), with or without written agreements with other parties so that jointly they control and/or own 10% (ten percent) or more of the Company's shares;
d. cooperate or take concerted actions to achieve common goals in controlling the Company (acting in concert), with or without written agreements with other parties so that jointly they have options or other rights to own shares, which if exercised cause such parties to control and/or own 10% (ten percent) or more of the Company's shares jointly; e. have the authority and/or ability to approve, appoint, and/or dismiss members of the Board of Commissioners and/or members of the Board of Directors of the Company; f. have the ability to determine (controlling influence) the strategic policy of the Company; g. control 1 (one) or more other companies that collectively own and/or jointly control 10% (ten percent) or more of the Company's shares; and/or h. exercise control over controllers as referred to in letter a and letter g.

(3) Controllers as referred to in paragraph (1) letter b, in the event the Company directly or indirectly:
a. owns 10% (ten percent) or more of the shares of other companies individually or jointly; b. holds options or other rights to own shares that if exercised cause such parties to control and/or own 10% (ten percent) or more of the shares of other companies individually or jointly;
c. cooperate or take concerted actions to achieve common goals in controlling other companies (acting in concert), with or without written agreements with other parties so that jointly they control and/or own 10% (ten percent) or more of the shares of other companies;
d. cooperate or take concerted actions to achieve common goals in controlling other companies (acting in concert), with or without written agreements with other parties so that jointly they have options or other rights to own shares, which if exercised cause such parties to control and/or own 10% (ten percent) or more of the shares of other companies jointly; e. have the authority and/or ability to approve, appoint, and/or dismiss members of the Board of Commissioners and/or members of the Board of Directors of other companies; f. have the ability to determine (controlling influence) the strategic policy of other companies; g. control 1 (one) or more other companies that collectively own and/or jointly control 10% (ten percent) or more of the shares of other companies; and/or h. exercise control over controllers as referred to in letter a and letter g.

(4) Controllers as referred to in paragraph (1) letter c and letter i, in the event of individuals or companies directly or indirectly:
a. own 10% (ten percent) or more of the shares of other companies and constitute the largest share ownership portion; b. individually or jointly own 25% (twenty-five percent) or more of the shares of other companies;
c. hold options or other rights to own shares that if exercised cause such parties to control and/or own shares of other companies as referred to in letter a or letter b;
d. cooperate or take concerted actions to achieve common goals in controlling other companies (acting in concert), with or without written agreements with other parties so that jointly they control and/or own shares of other companies as referred to in letter a or letter b; e. cooperate or take concerted actions to achieve common goals in controlling other companies (acting in concert), with or without written agreements with other parties so that jointly they have options or other rights to own shares, which if exercised cause such parties to control and/or jointly own shares of other companies as referred to in letter a or letter b; f. have the authority and/or ability to approve, appoint, and/or dismiss members of the Board of Commissioners and/or members of the Board of Directors of other companies; and/or g. have the ability to determine (controlling influence) the operational strategic policy or financial strategic policy of other companies.

(5) Financial relationships as referred to in paragraph (1) letters k to m are exempted for:
a. the Company's investment placements in the form as referred to in Article 5 paragraph (2); b. the provision of guarantees by insurance companies, Sharia insurance companies, reinsurance companies, Sharia reinsurance companies, guarantee companies, and/or Sharia guarantee companies according to their business fields; and
c. the provision of guarantees by the central government.

11. Between Article 13 and Article 14, 3 (three) articles are inserted, namely Article 13A, Article 13B, and Article 13C which read as follows:

Article 13A
(1) Ownership, management, and/or financial relationships in Groups of Investment Recipients that are not Related Parties include:
a. an investment recipient is a controller of another investment recipient; b. 1 (one) same party is a controller of several investment recipients;
c. 50% (fifty percent) of the members of the Board of Directors and/or members of the Board of Commissioners or equivalents of investment recipients become members of the Board of Directors and/or members of the Board of Commissioners or equivalents of other investment recipients;
d. investment recipients have financial relationships with other investment recipients; and/or e. 1 (one) same party provides guarantees to take over and/or repay part or all of the obligations of several investment recipients in the event investment recipients fail to meet obligations to creditors.

(2) Controllers as referred to in paragraph (1) letters a and b are controllers as referred to in Article 13 paragraph (4).

(3) Guarantee relationships as referred to in paragraph (1) letter e are exempted for:
a. the provision of guarantees by Insurance Companies, Reinsurance Companies, and guarantee companies, according to their business fields; and b. the provision of guarantees by the central government.

Article 13B
(1) Provisions regarding Related Parties as referred to in Article 13 paragraph (1) and Groups of Investment Recipients as referred to in Article 13A paragraph (1) are exempted for control caused by direct ownership by the Republic of Indonesia in the Company and/or other parties.

(2) The calculation of the investment amount in Related Parties, one Party that is not a Related Party, and one Group of Investment Recipients that is not a Related Party is exempted for investment placements in the form of:
a. securities issued by the Republic of Indonesia; b. securities issued by Bank Indonesia; and/or
c. securities issued by institutions given special authority based on

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provisions of legislation for the management of central government investments, which are guaranteed by the central government.
(3) Guarantees by the central government as referred to in paragraph (2) letter c, must meet the requirements:
a. the guarantee is unconditional and irrevocable; and b. has a duration at least equal to the duration of the guaranteed securities.
Article 13C
(1) The action plan as referred to in Article 12 paragraph (10) letter a must at least contain actions to be taken by the Company to resolve violations of maximum investment limits and/or exceedance of maximum investment limits and the target time for resolution. (2) The action plan as referred to in Article 12 paragraph (10) letter a must be submitted to the OJK no later than:
a. 1 (one) month since the OJK determined that a violation of maximum investment limits occurred as referred to in Article 12 paragraph (5); or b. 1 (one) month after the end of the reporting month for exceedance of maximum investment limits caused by matters as referred to in Article 12 paragraph (6) letter a, letter b, letter c, and/or letter d. (3) The target time for resolution as referred to in paragraph (1) is set for:
a. violation of maximum investment limits as referred to in Article 12 paragraph (4), no later than 1 (one) month; b. exceedance of investment limits on Related Parties, one Party that is not a Related Party, or on one Investment Recipient Group that is not a Related Party caused by matters as referred to in Article 12 paragraph (6) letter a, letter b, and/or letter c, no later than 9 (nine) months; or
c. exceedance of investment limits on Related Parties, one Party that is not a Related Party, or on one Investment Recipient Group that is not a Related Party caused by matters as referred to in Article 12 paragraph

(6) letter d and/or letter e, no later than 12 twelve months, since the deadline for submission of the action plan to the OJK.
(4) In the event that the target time for resolution of the action plan as referred to in paragraph (3) is assessed as unachievable, the Company, based on OJK approval, may set a different target time for resolution of the action plan than the target time for resolution of the action plan as referred to in paragraph (3). (5) The Company must submit a report on the implementation of the action plan to the OJK no later than 7 (seven) working days after the target time for resolution of the action plan. (6) The report on the implementation of the action plan to the OJK as referred to in paragraph (5) must at least contain information regarding the realization of steps contained in the action plan and the final result or status of the resolution of investment limit exceedance.
12. The provisions of Article 17 are amended to read as follows:
Article 17
(1) Permitted Assets in the form of non-investments must be of the type:
a. cash and bank; b. premiums receivable for direct closures, including co-insurance premiums receivable that are part of the Company;
c. reinsurance premiums receivable;
d. reinsurance assets; e. co-insurance claims receivable; f. reinsurance claims receivable; g. investment receivables; h. investment income receivables;
i. buildings with strata title or land with buildings, for
own use; j. deferred acquisition costs; and/or k. right-to-use assets.
(2) Restrictions on Permitted Assets in the form of non-investments as referred to in paragraph (1) must be implemented with the following provisions:

a. cash and bank, with the provision that cash and bank overseas permitted in their entirety are at most 1% (one percent) of the Equity of the current period; b. premiums receivable for direct closures including co-insurance premiums receivable that are part of the Company, with a receivable age of at most 2 two months calculated from the date:

1. coverage begins for policies with single premium
   payments; or
2. premium payment due date for policies with
   installment premium payments;
   c. reinsurance premiums receivable, with a receivable
   age of at most 2 (two) months calculated from the date of payment due; d. reinsurance assets, consisting of:
3. assets sourced from the estimated value of
   claim recovery for the reinsurance portion; and
4. assets sourced from long-term contract
   agreements for capital oriented reinsurance programs with the following provisions:
   a) only for each new PAYDI whose acquisition costs are paid in advance by the Company (back end loading); b) Companies that have recognized assets arising from capital oriented reinsurance program agreements for one PAYDI are not permitted to recognize deferred acquisition costs for the same PAYDI; and c) for each capital oriented reinsurance program agreement, prior approval from the OJK is required; e. co-insurance claims receivable, with a receivable age of at most 2 (two) months calculated from the date of claim payment to the policyholder or insured; f. reinsurance claims receivable, with a receivable age of at most 2 (two) months calculated from the date of payment due;

g. investment receivables, with a receivable age of at most 1 (one) month calculated from the date of payment due; h. investment income receivables, with a receivable age of at most 1 (one) month calculated from the date of payment due;
i. buildings with strata title or land with buildings, for
own use, with a total value of at most 25% (twenty five percent) of the Equity of the current period; j. deferred acquisition costs, with the following provisions:

1. can only be done for PAYDIs whose
   acquisition costs are paid in advance by the
   Company (back-end loading);
2. Companies that have recognized deferred
   acquisition costs for PAYDIs are not permitted to recognize assets arising from capital oriented reinsurance program agreements for the same PAYDI product; and
3. each formation of deferred acquisition costs
   for each PAYDI product must first obtain approval from the OJK; and/or k. right-to-use assets can only be obtained from financial service institutions that have obtained business licenses from the OJK. (3) The basis for valuing each type of asset as referred to in paragraph (1) refers to the applicable financial accounting standards for Companies in Indonesia. (4) Further provisions regarding the procedure for requesting OJK approval as referred to in paragraph (2) letter d number 2 letter c) and letter j number 3 are established by the OJK.
4. Between Article 19 and Article 20, 1 (one) article is
   inserted, namely Article 19A, so that it reads as follows:
   Article 19A
   (1) Companies may conduct transactions in the form of selling debt securities with a repurchase agreement at a predetermined time and price (repurchase agreement) to maintain the Company's liquidity conditions. (2) Implementation of transactions in the form of selling debt securities with a repurchase agreement

at a predetermined time and price (repurchase agreement) as referred to in paragraph (1) is implemented in accordance with OJK Regulations regarding guidelines for repurchase agreement transactions for financial service institutions.
14. The provisions of Article 23 are amended to read as follows:
Article 23
In calculating the Solvency Ratio, subordinated loans are not treated as a Liability element if the loan meets the following provisions:
a. used to meet the Solvency Ratio limit requirements; b. stipulated in a notarial agreement that at least contains:

1. repayment of the principal of the loan can only
   be done if it does not cause the Company to fail to meet its internal Solvency Ratio targets;
2. the loan repayment period is not limited; and
3. the promised interest rate is at most 1/5 (one fifth)
   of the Bank Indonesia interest rate at the time of signing the agreement; and
   c. subordinated loans are provided in the form of
   cash deposits.
4. The provisions of Article 26 are amended to read as follows:
   Article 26
   (1) Insurance Companies marketing PAYDI must separate the recording and reporting of Sub-fund Assets and Liabilities from Assets and Liabilities other than Sub-funds. (2) Insurance Companies are prohibited from transferring Sub-fund Assets and Liabilities to Assets and Liabilities other than Sub-funds, or vice versa. (3) In the event that an Insurance Company establishes more than 1 (one) Sub-fund then:
   a. the separation of Sub-fund Asset and Liability recording as referred to in paragraph (1) must be done for each Sub-fund established by the Insurance Company; b. Insurance Companies are prohibited from transferring Assets and Liabilities from one Sub-fund to another Sub-fund established by the Insurance Company; and
   c. Insurance Companies must manage the portion
   of Premiums intended to provide benefits referencing investment results, in accordance with the Sub-fund chosen by the Policyholder or Insured. (4) The prohibition on the transfer of Sub-fund Assets and Liabilities as referred to in paragraph (3) letter b is excepted for the transfer of Assets from 1 (one) Sub-fund to another Sub-fund conducted for adjusting the investment portfolio of the Sub-fund that does not harm policyholders or insureds.
5. The provisions of paragraph (1), paragraph (2), paragraph (4), and paragraph (5) of Article 27
   are amended to read as follows:
   Article 27
   (1) Sub-fund Assets must be placed in investment types:
   a. time deposits at Banks, Rural Banks (BPR), and Islamic Rural Banks (BPRS), including deposit on call and time deposits with a term of less than or equal to 1 (one) month; b. deposit certificates at Banks;
   c. shares listed on the stock exchange;
   d. corporate bonds listed on the stock exchange; e. MTN; f. securities issued by the Republic of Indonesia state; g. securities issued by countries other than the Republic of Indonesia; h. securities issued by Bank Indonesia;
   i. securities issued by multinational institutions
   of which the Republic of Indonesia is a member or shareholder; j. mutual funds; k. asset-backed securities;
   l. repurchase agreement (REPO);
   m. pure gold; and/or n. regional bonds.
   (2) Sub-fund Assets in the form of non-investments must be of the type:
   a. cash and bank; b. premiums receivable for direct closures;
   c. investment receivables; and/or
   d. investment income receivables.

(3) Investment types as referred to in paragraph (1) must be adjusted to the product description reported to the OJK and promised to prospective policyholders. (4) Sub-fund Assets from PAYDI that are not guaranteed are not counted as Permitted Assets. (5) The basis for valuing each type of Sub-fund Asset being investment assets and non-investment assets as referred to in paragraph (1) and paragraph (2) refers to the applicable financial accounting standards for Companies in Indonesia.
17. The provisions of Article 28 are amended to read as follows:
Article 28
Sub-fund Assets as referred to in Article 27 paragraph (1) must meet the provisions as referred to in
Article 6 through Article 9.
18. The provisions of Article 29 are amended to read as follows:
Article 29
(1) Companies are prohibited from placing Sub-fund investments overseas for PAYDI insurance policies using the Rupiah currency.
(2) Placing Sub-fund investments overseas for PAYDI insurance policies using foreign currency is prohibited from exceeding 20% (twenty percent) of the total investments of all Sub-funds.
19. Between Article 29 and Article 30, 1 (one) article is
inserted, namely Article 29A, so that it reads as follows:
Article 29A
(1) Investment placements for assets from Sub-funds must meet the following investment limits:
a. investments in Related Parties across all Sub-funds are at most 10% (ten percent) of the sum of the Company's Equity and subordinated loans; and b. investments in:

1. one Party that is not a Related Party; or
2. one Investment Recipient Group that is not
   a Related Party, are at most 25% (twenty five percent) of the net asset value of each respective Sub-fund.

(2) In the event that the Company has a Sharia unit, the Company's Equity as referred to in paragraph (1) letter a does not include Equity in the Sharia unit. (3) Related Parties as referred to in paragraph (1) letter a, the provisions of Related Parties as referred to in Article 13 and Article 13B apply. (4) Investment Recipient Groups as referred to in paragraph (1) letter b apply the provisions of Investment Recipient Groups as referred to in
Article 13A and Article 13B.
(5) Subordinated loans considered for setting investment limits on Related Parties as referred to in paragraph (1) letter a are set at most 100% (one hundred percent) of the Company's Equity. (6) In the event that Sub-fund investment assets are placed in the form of mutual funds as referred to in
Article 27 paragraph (1) letter j, the mutual funds
in question may only be mutual funds that have underlying assets consisting of securities issued by the Republic of Indonesia state or securities issued by Bank Indonesia of at least 50% (fifty percent) of the net asset value of the mutual fund and the Company has detailed information of all underlying assets of such mutual funds. (7) In the event that Sub-fund investment asset placements exceed the limits as referred to in paragraph (1), the Company must adjust the composition of such investment assets to meet the limits as referred to in paragraph (1) no later than:
a. 10 (ten) market days since the occurrence of investment limit violations caused by transactions conducted by the Company; or b. 90 (ninety) market days since the occurrence of investment limit exceedances not caused by transactions conducted by the Company.
20. The provisions of paragraph (1) of Article 30 are
amended to read as follows:
Article 30
(1) Companies must account for all Sub-fund Assets at a Custodian Bank.
(2) The Custodian Bank as referred to in paragraph (1) is prohibited from having an affiliation relationship with the Company, except for affiliation relationships that occur due to ownership or state capital participation of the Republic of Indonesia.

21. The provisions of Article 36 are added with 1 (one)
    paragraph, namely paragraph (4), so that it reads as follows:
    Article 36
    (1) Companies must establish a Guarantee Fund of at least 20% (twenty percent) of the minimum Equity required as referred to in Article 33. (2) The amount of the Guarantee Fund as referred to in paragraph (1) must be adjusted to the development of the Company's business volume with the following provisions:
    a. for Life Insurance Companies, must establish a Guarantee Fund equal to 2% (two percent) of reserves for PAYDI plus 5% (five percent) of reserves for premiums for products other than PAYDI and reserves for premiums that are not yet income; and b. for General Insurance Companies and Reinsurance Companies, must establish a Guarantee Fund equal to 1% (one percent) of Net Premiums plus 0.25% (zero point two five percent) of reinsurance premiums plus 2% (two percent) of reserves for PAYDI. (3) Companies must establish a Guarantee Fund equal to the larger amount between the calculation result of the Guarantee Fund amount as referred to in paragraph (1) and the Guarantee Fund amount as referred to in paragraph (2). (4) At the time the policy guarantee program is in effect, the provisions regarding the Guarantee Fund as referred to in paragraph (1), paragraph (2), and paragraph (3) only apply to Insurance Companies that do not meet the requirements to become participants in the policy guarantee program and Reinsurance Companies.
22. The provisions of paragraph (1) letter d, paragraph (2),
    paragraph (7), and paragraph (8) of Article 44 are amended, and between paragraph (2) and paragraph (3) 1 (one) paragraph is inserted, namely paragraph (2A), and paragraph (1) letter c of Article 44 is deleted, so that Article 44 reads as follows:
    Article 44
    (1) Companies must prepare:
    a. annual financial reports for the period January 1 to December 31 based on applicable financial accounting standards in Indonesia;

b. annual financial reports for the period January 1 to December 31 based on legislation provisions in the insurance field;
c. deleted;
d. monthly reports for the period from the 1st to the end of the current month; and e. annual actuarial reports for the period January 1 to December 31. (2) Annual financial reports as referred to in paragraph (1) letter a must:

1. be audited by a public accountant registered
   with the OJK; and
2. receive approval from the General Meeting of
   Shareholders.
   (2A) In the event that the public accountant provides a management letter to the Company, the annual financial report must be completed with the management letter. (3) Annual financial reports as referred to in paragraph (1) letter b must be reviewed and assessed for compliance with legislation provisions in the field of financial health of insurance companies by the Company's actuary or a public accountant registered with the OJK. (4) The actuarial report as referred to in paragraph (1) letter e is a report describing the Company's estimated ability to meet its future obligations. (5) The report as referred to in paragraph (1) letter e must be signed by the Company's actuary. (6) The annual actuarial report as referred to in paragraph (1) letter e must be reviewed and assessed for fair presentation by an actuarial consultant registered with the OJK at least 1 (one) time in 3 (three) years. (7) Annual financial reports as referred to in paragraph (1) letter b must at least contain:
   a. Company profile; b. statement letter from the Board of Directors or equivalent;
   c. financial position report;
   d. comprehensive income statement; e. cash flow statement; f. Equity change report; g. Solvency Ratio report; h. asset and Liability calculations;
   i. PAYDI financial reports;

j. consolidated financial reports; and k. additional reports.
(8) Provisions regarding the form and structure of reports as referred to in paragraph (1) letter b through letter e are established by the OJK.
23. Between Article 44 and Article 45, 1 (one) article is
inserted, namely Article 44A, so that it reads as follows:
Article 44A
(1) Companies must possess and account for a detailed list of Related Parties as referred to in Article 13 and Investment Recipient Groups that are not Related Parties as referred to in Article 13A, for:
a. investments in assets other than Sub-funds as referred to in Article 12 paragraph (1); and b. investments in Sub-fund assets as referred to in
Article 29A paragraph (1).
(2) The detailed list of Related Parties as referred to in paragraph (1) must at least contain the name of the Related Party and the relationship between the Related Party and the Company. (3) The detailed list of Investment Recipient Groups as referred to in paragraph (1) must at least contain the name of the Party, the name of the Investment Recipient Group that is not a Related Party, and the relationship between the Party and other Parties within the Investment Recipient Group that is not a Related Party. (4) Companies must submit to the OJK:
a. reports on the detailed lists of Related Parties and Investment Recipient Groups that are not Related Parties receiving investments in Sub-fund and non-Sub-fund assets using the format contained in Annex I which is an integral part of this OJK Regulation; b. reports on investment placements in:

1. Related Parties;
2. one Party that is not a Related Party; and
3. one Investment Recipient Group that is not
   a Related Party, receiving investments from non-Sub-funds using the format contained in Annex II which is an integral part of this OJK Regulation.

c. reports on investment placements in Related
Parties, one Party that is not a Related Party, and one Investment Recipient Group that is not a Related Party receiving investments from Sub-funds using the format contained in
Annex III which is an integral part of this OJK
Regulation.
(5) Reports as referred to in paragraph (4) must be submitted:
a. every month as part of the monthly reports as referred to in Article 44 paragraph (1) letter d; or b. according to the deadline requested by the OJK if the OJK requests the Company to submit such reports.
24. The provisions of paragraph (3) of Article 47 are
amended, and paragraph (1) is added with 1 (one) letter, namely letter d, and paragraph (1) letter b of
Article 47 is deleted, so that Article 47 reads as follows:
Article 47
(1) Companies must submit to the OJK:
a. reports as referred to in Article 44 paragraph (1) letter a, letter b, and letter e no later than April 30 of the following year; b. deleted;
c. reports as referred to in Article 44 paragraph (1)
letter d no later than the 10th of the following month; and d. reports on the review and assessment of fair presentation as referred to in Article 44 paragraph (6) no later than June 30 of the following year after the actuarial reporting period in which the review and assessment were conducted. (2) If the final deadline for submitting reports as referred to in paragraph (1) is a holiday, the final deadline for report submission is the first working day after the final deadline. (3) Provisions regarding the procedure for submitting reports as referred to in paragraph (1) are established by the OJK.

25. The provisions of paragraph (1), paragraph (3), and
    paragraph (4) of Article 48 are amended, and 1 (one) paragraph is added, namely paragraph (5), so that
    Article 48 reads as follows:
    Article 48
    (1) Companies must announce a summary of the audited annual financial reports as referred to in Article 44 paragraph (2) on the Company's website and in a daily newspaper in Indonesian language circulated nationally no later than 1 (one) month after the submission deadline for financial reports as referred to in Article 47 paragraph (1) letter a, containing at least:
    a. financial position; b. financial performance; and
    c. financial health conditions.
    (2) Proof of announcement as referred to in paragraph (1) must be submitted to the OJK no later than 2 two working days after the announcement in the newspaper. (3) Companies must announce a summary of monthly reports as referred to in Article 44 paragraph (1) letter d on the Company's website no later than 10 (ten) working days after the end of the relevant month. (4) Provisions regarding the form and structure of the summary of annual financial reports as referred to in paragraph (1) are established by the OJK. (5) The form and structure of the summary of monthly reports as referred to in paragraph (3) uses the format contained in Annex IV which is an integral part of this OJK Regulation.
26. The provisions of Article 50 are amended to read as follows:
    Article 50
    (1) Companies that do not meet the internal Solvency Ratio targets as referred to in Article 3 paragraph (3) and paragraph (4):
    a. must submit a financial rehabilitation plan; and b. are prohibited from distributing dividends or giving returns in any form to shareholders. (2) The financial rehabilitation plan as referred to in paragraph (1) letter a is part of the action plan and/or capital improvement plan as referred to in

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Regulations of the OJK regarding the determination of status and supervisory follow-up on non-bank financial service institutions.

27. Article 51 is deleted.
28. Article 52 is deleted.
29. Article 53 is deleted.
30. Article 54 is deleted.
31. Between Chapter IX and Chapter X, 1 (one) CHAPTER is inserted, namely CHAPTER IXA, and between Article 54 and Article 55, 1 (one) article is inserted, namely Article 54A, so that it reads as follows:

CHAPTER IXA
POLICIES TOWARDS COMPANIES IMPACTED BY DISASTERS

Article 54A
(1) The OJK has the authority to establish policies in the field of insurance aimed at reducing pressure, maintaining the stability of the insurance industry, and providing relaxation to actors in the insurance industry impacted by disasters. (2) Further provisions regarding the implementation of the OJK's authority in the form of policies to reduce pressure and maintain the stability of the insurance industry, as well as the form of relaxation provided to actors in the insurance industry impacted by disasters as referred to in paragraph (1), shall be determined by the OJK.

32. Provisions in paragraph (1), paragraph (2), and paragraph (3) of Article 55 are amended so that they read as follows:

Article 55
(1) Violations against the provisions as referred to in Article 2 paragraph (1), Article 3 paragraph (1), paragraphs (2) and (6), Article 4 paragraph (2), Article 5 paragraph (1), Article 10, Article 12 paragraph (4) and paragraph (10), Article 13C paragraph (1), paragraphs (2) and (5), Article 14 paragraph (1) and paragraph (2), Article 19 paragraph (1) and paragraph (2), Article 20 paragraph (2) and paragraph (3), Article 21 paragraph (2), Article 24, Article 25 paragraph (1), Article 26 paragraph (1), paragraphs (2) and (3), Article 27 paragraph (1) and paragraph (3), Article 28, Article 29, Article 29A paragraph (1) and paragraph (7), Article 30, Article 31 paragraph (1) and paragraph (4), Article 32 paragraph (1), Article 33, Article 34, Article 35, Article 36 paragraph (1), paragraphs (2) and (3), Article 37 paragraph (2), paragraphs (4) and (5), Article 38 paragraph (1), Article 39, Article 40 paragraph (4), paragraphs (5) and (8), Article 41 paragraph (2), Article 42 paragraph (1) and paragraph (3), Article 44 paragraph (1), paragraphs (2), (2A), (3), and (6), Article 44A paragraph (1), paragraphs (4) and (5), Article 46, Article 47 paragraph (1), Article 48 paragraph (1), paragraphs (2) and (3), Article 49, and/or Article 50 paragraph (1) shall be subject to administrative sanctions in the form of:
a. written warning; and/or b. restriction of business activities, for part or all of the business activities.

(2) The OJK may impose administrative sanctions in the form of restriction of business activities without prior imposition of other administrative sanctions if, based on the results of the OJK's supervision, the Company's condition is deemed dangerous to policyholders or insured parties.

(3) In addition to administrative sanctions as referred to in paragraph (1), the OJK may add additional sanctions in the form of:
a. prohibition on marketing insurance products for specific lines of business; b. deleted;
c. prohibition on the Company from becoming a shareholder or equivalent to a shareholder, and/or controller in a legal entity in the form of a cooperative or joint venture, in an insurance company; and/or
d. prohibition on shareholders, controllers, board of directors, and/or board of commissioners, or equivalents thereof, of the Company from becoming shareholders, controllers, board of directors, and/or board of commissioners, or equivalents thereof, in a legal entity in the form of a cooperative or joint venture, in an insurance company.

33. Between Article 55 and Article 56, 1 (one) article is inserted, namely Article 55A, so that it reads as follows:

Article 55A
In addition to administrative sanctions as referred to in Article 55 paragraph (1) and additional sanctions as referred to in Article 55 paragraph (3), the OJK may:
a. lower the result of the assessment of the Company's health level; and/or b. conduct a re-evaluation of the Company's key parties.

34. Article 56 is deleted.
35. 4 (four) appendices are added, namely Appendix I, Appendix II, Appendix III, and Appendix IV as stated in the appendix.

Article II

1. Provisions on the placement of Permitted Assets in the form of investment in Parties affiliated with the Company at most 25% (twenty-five percent) of the total investment amount, and placement of Permitted Assets in the form of investment in one Party or several Parties that are affiliated but such Parties are not affiliated with the Company, at most 25% (twenty-five percent) of the total investment amount, shall remain valid until 3 (three) months after this Regulation of the OJK takes effect.

2. Investment placements in the form of loans guaranteed by mortgage rights already owned by the Company shall continue to be recognized as Permitted Assets until maturity and cannot be extended, subject to meeting the following provisions:
   a. the loan is granted to individuals; b. the loan is guaranteed by first mortgage rights;
   c. the loan is conducted in accordance with applicable legislation;
   d. the certificate of land rights which has been marked with the burden of mortgage rights is stored by the Company; e. the amount of each loan is at most 75% (seventy-five percent) of the smallest collateral value among the value set by an appraiser registered with the competent authority and the tax sale value of the object; and f. the restriction on investment in the form of loans guaranteed by mortgage rights, in total, is at most 10% (ten percent) of the total investment amount.

3. In the case of PAYDI insurance policies in rupiah currency that have Sub-funds placed in foreign investments issued before this Regulation of the OJK takes effect, the Company is not required to adjust the foreign investments of such Sub-funds, however, such Sub-funds cannot be owned by policyholders or insured parties of PAYDI in rupiah currency who do not yet have such Sub-funds.

4. In the case of Sub-funds formed before this Regulation of the OJK takes effect containing investments in mutual funds with underlying assets other than those referred to in Article 29A paragraph (6), the Company is not required to adjust the Sub-fund investments in such mutual funds, however, such Sub-funds cannot be owned by policyholders or insured parties who do not yet have such Sub-funds.

5. For Companies that have had business licenses before this Regulation of the OJK takes effect:
   a. the provisions as referred to in Article 12 paragraph (7) and paragraph (8) shall take effect starting from 3 (three) months since this Regulation of the OJK takes effect; and b. Reports as referred to in Article 44A paragraph (5) letter a for the first time shall be submitted as part of the monthly report for the period starting 3 (three) months since this Regulation of the OJK takes effect.

6. Companies that have placed investments exceeding investment limits on Related Parties, one Non-Related Party, and/or one Investment Recipient Group that is not a Related Party at the time this Regulation of the OJK takes effect must resolve such exceedances within at most 12 (twelve) months since this Regulation of the OJK takes effect.

7. Companies that have placed investments in Sub-fund assets in the form of MTN that do not meet the criteria as referred to in Article 6 paragraph (2) and/or limited partnership mutual funds that do not meet the criteria as referred to in Article 6 paragraph (4) letter b before this Regulation of the OJK takes effect are not required to adjust investments in such MTN, however, they are not permitted to increase investment placements in such MTN and/or limited partnership mutual funds.

8. At the time this Regulation of the OJK takes effect, provisions regarding quarterly reports as referred to in the Regulation of the Financial Services Authority Number 55/POJK.05/2017 concerning Periodic Reports of Insurance Companies (State Gazette of the Republic of Indonesia Year 2017 Number 174, Supplement to the State Gazette of the Republic of Indonesia Number 6107) are declared invalid;

9. This Regulation of the OJK takes effect on the date of its promulgation.

This copy corresponds to the original
Director of Law 1
Legal Department signed
Mufli Asmawidjaja

To ensure everyone knows, ordering the promulgation of this Regulation of the Financial Services Authority by placing it in the State Gazette of the Republic of Indonesia. Determined in Jakarta on April 5, 2023 CHAIRMAN OF THE COMMISSIONERS BOARD FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed MAHENDRA SIREGAR

Promulgated in Jakarta on April 6, 2023
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2023 NUMBER 8/OJK

EXPLANATION
OF
REGULATION OF THE FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA NUMBER 5 OF 2023 CONCERNING THE SECOND AMENDMENT TO REGULATION OF THE FINANCIAL SERVICES AUTHORITY NUMBER 71/POJK.05/2016 CONCERNING FINANCIAL HEALTH OF INSURANCE COMPANIES AND REINSURANCE COMPANIES

I. GENERAL
Regulation of the OJK Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies as amended by Regulation of the OJK Number 27/POJK.05/2018 concerning Amendments to Regulation of the OJK Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies serves as the legal basis for the OJK in assessing the financial health of insurance and reinsurance companies. Furthermore, the aforementioned Regulation of the OJK also serves as a guideline for Companies in conducting operational activities, particularly to maintain the Company's financial health and investment placement. To maintain corporate financial health and optimize investment performance, especially in Investment-Linked Insurance Products (PAYDI), companies must apply the principle of prudence in investment activities. In applying the principle of prudence, companies must maintain the level of risk exposure to related parties, as well as investment placement in one party and one group of investment recipients that are not related parties. In maintaining financial health, companies must maintain the level of such risk exposure by considering the company's capital adequacy to bear risks. Specifically for PAYDI, companies must maintain the level of risk exposure by considering its potential impact on the investment performance of PAYDI. Considering the above conditions and to implement the provisions of Article 83 paragraph (6) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Services Sector, adjustments are needed to the provisions regarding investment placement limits previously regulated in Regulation of the OJK Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies as amended by Regulation of the OJK Number 27/POJK.05/2018 concerning Amendments to Regulation of the OJK Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies, specifically investment limits on related parties, or on one party and one group of investment recipients that are not related parties.

II. ARTICLE BY ARTICLE
Article I
Number 1
Article 1
It is clear enough.

Number 2
Article 2
It is clear enough.

Number 3
Article 4
Paragraph (1)
Credit risk, liquidity risk, and market risk are part of asset and Liability risks present in the risk level assessment of non-bank financial service institutions.

Paragraph (2)
The term "certain percentage" refers to a percentage reflecting the risk of managing Sub-funds.

Paragraph (3)
It is clear enough.

Number 4
Article 5
Paragraph (1)
The term "principle of prudence" refers to investment placement that considers security, optimal yield, liquidity needs, and the Company's Liability profile.

Letter a
It is clear enough.

Letter b
The term "deposit certificates" refers to deposits in the form of deposits where the certificate of deposit evidence can be transferred.

Letter c
It is clear enough.

Letter d
The term "corporate bonds" refers to bonds issued by business entities, including institutions given special authority to manage central government investments based on applicable legislation.

Letter e
It is clear enough.

Letter f
It is clear enough.

Letter g
It is clear enough.

Letter h
It is clear enough.

Letter i
It is clear enough.

Letter j
It is clear enough.

Letter k
It is clear enough.

Letter l
It is clear enough.

Letter m
It is clear enough.

Letter n
It is clear enough.

Letter o
It is clear enough.

Letter p
It is clear enough.

Letter q
It is clear enough.

Letter r
Deleted.

Letter s
The term "policy loan" refers to a loan granted to a policyholder on an insurance policy that has cash value.

Letter t
The term "regional bonds" refers to regional loans offered to the public through a public offering in the capital market in accordance with legislation regarding regional loans.

Letter u
The term "infrastructure investment fund in the form of collective investment contracts" refers to a vehicle in the form of a collective investment contract used to gather funds from retail investors to subsequently invest most of them in infrastructure assets by an investment manager.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Number 5
Article 5B
It is clear enough.

Number 6
Article 6
Paragraph (1)
The term "investment grade" refers to suitability given to a type of investment issued by a company that receives a rating from an agency recognized by the OJK or equivalent to BBB.

Paragraph (2)
Letter a
It is clear enough.

Letter b
It is clear enough.

Letter c
It is clear enough.

Letter d
It is clear enough.

Letter e
The term "institution given special authority based on applicable legislation for the management of central government investments" refers to an investment management institution as referred to in the provisions of applicable legislation regarding investment management institutions.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Paragraph (7)
It is clear enough.

Paragraph (8)
It is clear enough.

Paragraph (9)
It is clear enough.

Paragraph (10)
Deleted.

Number 7
Article 7
It is clear enough.

Number 8
Article 11
Paragraph (1)
Permitted Assets in the form of securities issued by the Republic of Indonesia or Bank Indonesia are not subject to investment limits, so they can be fully counted as permitted assets.

Paragraph (2)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
The term "institution given special authority based on applicable legislation for the management of central government investments" refers to an investment management institution as referred to in the provisions of applicable legislation regarding investment management institutions.

Paragraph (6)
It is clear enough.

Number 9
Article 12
Paragraph (1)
Letter a
Example:
PT Insurance X has Equity (excluding Sharia Unit Equity) amounting to Rp200,000,000,000.00 (two hundred billion rupiah), Sharia Unit Equity amounting to Rp75,000,000,000.00 (seventy-five billion rupiah), and subordinated loans amounting to Rp100,000,000,000.00 (one hundred billion rupiah). The Company has investments in Related Parties in the form of PT Financing X1 bonds amounting to Rp10,000,000,000.00 (ten billion rupiah), deposits at PT Bank X2 amounting to Rp20,000,000,000.00 (twenty billion rupiah), and shares of PT Bank X2 amounting to Rp5,000,000,000.00 (five billion rupiah). Thus:

• Total investment in Related Parties = Rp10,000,000,000.00 (ten billion rupiah) + Rp20,000,000,000.00 (twenty billion rupiah) + Rp5,000,000,000.00 (five billion rupiah) = Rp35,000,000,000.00 (thirty-five billion rupiah). Whereas the percentage of investment in Related Parties against the sum of Equity and subordinated loans = (Rp35,000,000,000.00 (thirty-five billion rupiah) ÷ Rp300,000,000,000.00 (three hundred billion rupiah) x 100% (one hundred percent) = 11.67% (eleven point six seven percent).
• The maximum limit for investment in Related Parties in percentage terms is 10% (ten percent) of the sum of Equity and subordinated loans. The maximum limit for investment in Related Parties in nominal terms = 10% (ten percent) x (Rp200,000,000,000.00 [two hundred billion rupiah] + Rp100,000,000,000.00 [one hundred billion rupiah]) = Rp30,000,000,000.00 (thirty billion rupiah).
• There is an excess investment in Related Parties, in percentage terms = 11.67% (eleven point six seven percent) - 10% (ten percent) = 1.67% (one point six seven percent) or in nominal terms equal to 1.67% (one point six seven percent) x Rp300,000,000,000.00 (three hundred billion rupiah) = Rp5,010,000,000.00 (five billion ten million rupiah).

Letter b
PT Insurance Y has total investments amounting to Rp150,000,000,000.00 (one hundred fifty billion rupiah). The Company has investments in one Investment Recipient Group that is not a Related Party in the form of PT Financing Y1 bonds amounting to Rp20,000,000,000.00 (twenty billion rupiah), deposits at PT Bank Y2 amounting to Rp20,000,000,000.00 (twenty billion rupiah), and shares of PT Bank Y2 amounting to Rp5,000,000,000.00 (five billion rupiah). Thus:

• Total investment in one Party or Investment Recipient Group that is not a Related Party = Rp20,000,000,000.00 (twenty billion rupiah) + Rp20,000,000,000.00 (twenty billion rupiah) + Rp5,000,000,000.00 (five billion rupiah) = Rp45,000,000,000.00 (forty-five billion rupiah). Whereas the percentage of investment in one Investment Recipient Group that is not a Related Party against total investment = (Rp45,000,000,000.00 [forty-five billion rupiah] ÷ Rp150,000,000,000.00 [one hundred fifty billion rupiah]) x 100% (one hundred percent) = 30% (thirty percent).
• The maximum limit for investment in one Investment Recipient Group that is not a Related Party in percentage terms is 25% (twenty-five percent) of total investment. The maximum limit for investment in one Investment Recipient Group that is not a Related Party in nominal terms = 25% (twenty-five percent) x Rp150,000,000,000.00 (one hundred fifty billion rupiah) = Rp37,500,000,000.00 (thirty-seven billion five hundred million rupiah).
• There is an excess investment in one Investment Recipient Group that is not a Related Party, in percentage terms = 30% (thirty percent) - 25% (twenty-five percent) = 5% (five percent) or in nominal terms equal to 5% (five percent) x Rp150,000,000,000.00 (one hundred fifty billion rupiah) = Rp7,500,000,000.00 (seven billion five hundred million rupiah).

Paragraph (2)
It is clear enough.

Paragraph (3)
PT Insurance X has Equity amounting to Rp200,000,000,000.00 (two hundred billion rupiah) and subordinated loans amounting to Rp250,000,000,000.00 (two hundred fifty billion rupiah). The total investment in all Related Parties amounts to Rp35,000,000,000.00 (thirty-five billion rupiah). Thus:

• Subordinated loans counted in determining the maximum investment limit are only Rp200,000,000,000.00 (two hundred billion rupiah), so the sum of Equity and subordinated loans is Rp200,000,000,000.00 (two hundred billion rupiah) + Rp200,000,000,000.00 (two hundred billion rupiah) = Rp400,000,000,000.00 (four hundred billion rupiah).
• The maximum limit for investment in Related Parties in nominal terms is 10% (ten percent) x (Rp200,000,000,000.00 [two hundred billion rupiah] + Rp200,000,000,000.00 [two hundred billion rupiah]) = Rp40,000,000,000.00 (forty billion rupiah).
• The percentage of investment placement in Related Parties against the sum of Equity and subordinated loans = (Rp35,000,000,000.00 [thirty-five billion rupiah] ÷ Rp400,000,000,000.00 [four hundred billion rupiah]) x 100% (one hundred percent) = 8.75% (eight point seven five percent).

Paragraph (4)
It is clear enough.

Paragraph (5)
The assessment of the Company's subordinated loans refers to the provisions regulated in the accounting standards applicable to the Company in Indonesia.

Letter a
Based on the January 2022 financial report, PT Insurance X has Equity amounting to Rp300,000,000,000.00 (three hundred billion rupiah). Furthermore, PT Insurance X has no subordinated loans and no investments in Related Parties. On February 15, 2022, PT Insurance X conducted an investment placement transaction with a Related Party amounting to Rp40,000,000,000.00 (forty billion rupiah). Thus:

• Percentage of investment placement in Related Parties against the sum of Equity and subordinated loans = (Rp40,000,000,000.00 [forty billion rupiah] ÷ Rp300,000,000,000.00 [three hundred billion rupiah]) x 100% (one hundred percent) = 13.33% (thirteen point three three percent).
• Violation of the maximum investment limit = 13.33% (thirteen point three three percent) - 10% (ten percent) = 3.33% (three point three three percent). The nominal violation of the maximum investment limit in Related Parties is 3.33% (three point three three percent) x Rp300,000,000,000.00 (three hundred billion rupiah) = Rp9,990,000,000.00 (nine billion nine hundred ninety million rupiah).

Letter b
Based on the January 2022 financial report, PT Insurance Y has total investments amounting to Rp300,000,000,000.00 (three hundred billion rupiah). Furthermore, PT Insurance Y only has investments in one Party or Related Investment Recipient Group amounting to Rp100,000,000,000.00 (one hundred billion rupiah). On February 15, 2022, PT Insurance Y conducted an investment placement transaction with one Party or Investment Recipient Group amounting to Rp50,000,000,000.00 (fifty billion rupiah). Thus:

• Percentage of investment placement in one Party or Investment Recipient Group against total investment = (Rp40,000,000,000.00 [forty billion rupiah] ÷ Rp150,000,000,000.00 [one hundred fifty billion rupiah]) x 100% (one hundred percent) = 26.67% (twenty-six point six seven percent).
• Violation of the maximum investment limit = 26.67% (twenty-six point six seven percent) - 25% (twenty-five percent) = 1.67% (one point six seven percent). The nominal violation of the maximum investment limit in one Party or Investment Recipient Group is 1.67% (one point six seven percent) x Rp150,000,000,000.00 (one hundred fifty billion rupiah) = Rp2.5 billion (two point five billion rupiah).

Paragraph (6)
Letter a
It is clear enough.

Letter b
Exchange rate changes can cause an increase in the book value of investments in foreign currency forms, thereby causing an exceedance of the maximum investment limit. According to accounting standards, adjustments for exchange rates are only made for financial instrument accounts.

Letter c
The term "change in fair value of assets" includes changes in value in equity method recording (equity method) 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
Business combinations, whether in the form of acquisition, merger, or other ownership structure changes, and/or changes in management structure conducted by the Company and/or the investment recipient can result in changes to the party designated as a Related Party or Investment Recipient Group. Thus, as a result of business combinations and/or changes in management structure, the Company must re-evaluate the amount of exposure held regarding investment placements in relation to the limits established for Related Parties and/or Investment Recipient Groups.

Letter e
The term "change in legislative provisions" refers to changes in legislative provisions regarding parties categorized as Related Parties or Investment Recipient Groups.

Investments, including the implementation of this OJK Regulation.

Paragraph (7)
What is meant by "monthly report" is the report submitted by the Company to OJK on a monthly basis based on regulations regarding periodic company reports.

Based on the January 2022 and February 2022 reports, the data for PT Insurance X is as follows (amounts in billions of rupiah):

Assets, Equity, and Liabilities	January	February
Investments
a. Investments in Related Parties
Shares of PT X1	20	35
b. Non-Related Parties
1) Bank A Deposits	160	160
2) Bank B Deposits	150	150
3) Shares of PT C	130	180
4) Investments in Recipient Groups
Group D	140	180
Total Investments	600	705
Non-Investments	100	100
Total Assets	700	805
Equity	200	305
Liabilities	500	500
Equity and Liabilities	700	805

During February 2022, PT Insurance X did not add any investments in Related Parties or Non-Related Parties, so the change in investment value was only caused by price changes of each investment. Thus, there are exceedances of the maximum investment limits as follows:

1. Investments in Related Parties
   Exceedance of maximum investment limit = ([Rp35,000,000,000.00 {thirty-five billion rupiah} ÷ Rp305,000,000,000.00 {three hundred five billion rupiah}] x 100% {one hundred percent}) – 10% {ten percent} = 1.48% {one point four eight percent}, or nominally 1.48% {one point four eight percent} x Rp305,000,000,000.00 {three hundred five billion rupiah} = Rp4,514,000,000.00 {four billion five hundred fourteen million rupiah}.

2. Investments in Non-Related Parties
   Investments in shares of PT C = ([Rp180,000,000,000.00 {one hundred eighty billion rupiah} ÷ Rp705,000,000,000.00 {seven hundred five billion rupiah}] x 100% {one hundred percent}) – 25% {twenty-five percent} = 0.53% or nominally 0.53% {zero point five three percent} x Rp705,000,000,000.00 {seven hundred five billion rupiah} = Rp3,750,000,000.00 {three billion seven hundred fifty million rupiah}.

3. Investments in Recipient Group D = ([Rp180,000,000,000.00 {one hundred eighty billion rupiah} ÷ Rp705,000,000,000.00 {seven hundred five billion rupiah}] x 100% {one hundred percent}) – 25% {twenty-five percent} = 0.53% {zero point five three percent} or nominally 0.53% {zero point five three percent} x Rp705,000,000,000.00 {seven hundred five billion rupiah} = Rp3,750,000,000.00 {three billion seven hundred fifty million rupiah}.

Paragraph (8)
Clearly sufficient.

Paragraph (9)
Clearly sufficient.

Paragraph (10)
Clearly sufficient.

Paragraph (11)
Clearly sufficient.

Paragraph (12)
Clearly sufficient.

Number 10
Article 13

Paragraph (1)
Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Example:
PT A is controlled by the same controller as PT Insurance B, so PT A is referred to as a Related Party.

Letter d
What is meant by "executive officer of the Company" is the head of division, head of regional office, head of branch office, head of functional office with the lowest position equivalent to the head of branch office, head of risk management work unit, head of compliance work unit, head of internal audit work unit, and/or other equivalent officials.

Letter e
Horizontal or vertical family relationships are:

1. biological/step/adopted parents;
2. biological/step/adopted siblings;
3. biological/step/adopted children;
4. biological/step/adopted grandparents;
5. biological/step/adopted grandchildren;
6. biological/step/adopted siblings of parents;
7. husband or wife;
8. parents-in-law;
9. husband or wife of biological/step/adopted children;
10. grandparents of husband or wife;
11. husband or wife of biological/step/adopted grandchildren; or
12. biological/step/adopted siblings of husband or wife along with the husband or wife of the respective sibling.

Letter f
Clearly sufficient.

Letter g
Clearly sufficient.

Letter h
The total of 50% {fifty percent} or more is calculated from the cumulative total of directors and/or commissioners.

Letter i
Clearly sufficient.

Letter j
What is meant by "collective investment contract" is a contract between the investment manager and the custodian bank that binds unit holders, where the investment manager is authorized to manage the collective investment portfolio and the custodian bank is authorized to carry out collective custody as referred to in the OJK Regulation governing mutual funds in the form of collective investment contracts (KIK). In insurance financial health regulations, the KIK investment manager is established as the party to determine the control relationship. In the event that the Company and/or Related Parties with the Company own 10% {ten percent} or more of the shares in a KIK investment manager, then the investment of funds in the KIK managed by that investment manager and/or the provision of funds to that investment manager are established as the provision of funds to Related Parties. Meanwhile, KIKs with underlying government securities are excluded from the aforementioned investment limits.

For example, PT Insurance A places investments in the form of KIK mutual funds or KIK asset-backed securities issued by PT Investment Manager A, 10% {ten percent} of whose shares are owned by PT Insurance A and PT A Investments.

Letter k
Financial relationships are analyzed from several factors, namely:

1. there is financial assistance from the Company and/or Related Parties or financial assistance to the Company and/or other Related Parties with terms that cause the party providing the financial assistance to have the ability to determine (controlling influence) the strategic policies of the recipient of the financial assistance;
2. there are significant business chain linkages in the operational business of the Company or Related Parties with other companies, resulting in interdependence between one party and another party which causes:
   a. one party is unable to easily transfer business transactions to another party; and b. the inability to easily transfer business transactions causes the cash flow of one party to experience significant disruption, thereby experiencing difficulties in meeting obligations; and/or
3. there is credit risk transfer through guarantees where the guarantor will take over part or all of the financial risk from the guaranteed party, excluding guarantees in the reinsurance and co-insurance mechanisms.

Letter l
What is meant by "guarantee" is a promise given by one party to take over and/or pay off part or all of the obligations of the debtor party in the event that the debtor party fails to meet obligations (breach of contract).

Letter m
Clearly sufficient.

Letter n
Clearly sufficient.

Paragraph (2)
What is meant by "joint control" is joint control by the owners of the subsidiary company based on a contractual agreement.

Joint control must be proven by the existence of a written agreement or commitment from the owners to provide financial and non-financial support according to their respective ownership.

Indirectly owning shares means controlling or owning shares jointly or through other parties, including:

1. shares of the Company or other companies owned by other parties whose voting rights can be used or controlled by the controller;
2. shares of the Company or other companies owned by parties controlled by the controller;
3. shares of the Company or other companies owned by affiliated parties of the controller, namely:
   a. members of the board of commissioners, members of the board of directors, or equivalents or their proxies, officials, or employees of the controlling company; b. managers, supervisors, administrators, or their proxies, officials, or employees of the controlling company, specifically for companies with a cooperative legal entity status;
   c. parties providing services to the controlling company, including public accountants, appraisers, legal consultants, and other consultants who are proven to be controlled by the controller;
   d. parties having family relationships with the controller due to marriage and/or descent; or e. parties who, in the judgment of OJK, participate in influencing the management of the controller, including shareholders and their families, families of members of the board of commissioners, families of supervisors, families of members of the board of directors, and families of managers;
4. shares of the Company or other companies owned by subsidiaries of companies controlled by the controller;
5. shares of the Company or other companies owned by parties acting on behalf of and for the controller (nominee shares) based on or not based on a specific agreement;
6. shares of the Company or other companies owned by other parties whose transfer requires approval from the controller;
7. shares of other companies owned by the Company through companies controlled by the Company in a hierarchical manner up to the last company (ultimate subsidiary);
   and/or
8. shares of the Company or other companies other than shares as referred to in numbers 1 to 7 that are controlled by the Company or controller.

Shares mean all types of shares that have voting rights.

Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Clearly sufficient.

Letter d
Clearly sufficient.

Letter e
Clearly sufficient.

Letter f
Strategic policy refers to policies concerning the determination of the direction and goals of business implementation that have a significant impact.

Letter g
Clearly sufficient.

Letter h
Clearly sufficient.

Paragraph (3)
Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Clearly sufficient.

Letter d
Clearly sufficient.

Letter e
Clearly sufficient.

Letter f
Strategic policy refers to policies concerning the determination of the direction and goals of business implementation that have a significant impact.

Letter g
Clearly sufficient.

Letter h
Clearly sufficient.

Paragraph (4)
Clearly sufficient.

Paragraph (5)
Letter a
Clearly sufficient.

Letter b
The provision of guarantees by insurance companies, Islamic insurance companies, reinsurance companies, Islamic reinsurance companies, guarantee companies, and Islamic guarantee companies follows the OJK Regulation regarding the conduct of business of each respective company.

Letter c
Clearly sufficient.

Number 11
Article 13A

Paragraph (1)
Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Clearly sufficient.

Letter d
Financial relationships between investment recipients are analyzed based on several factors, namely:

1. there is financial assistance from one investment recipient to another investment recipient with terms that cause the investment recipient providing the financial assistance to have the ability to determine (controlling influence) the strategic policies of the investment recipient receiving the financial assistance;
2. there are significant business chain linkages in the operational business of the investment recipient with other investment recipients, resulting in interdependence between investment recipients which causes:
   a. one investment recipient is unable to easily transfer such business transactions to other parties; and/or b. the inability to easily transfer such business transactions causes the cash flow of one investment recipient to experience significant disruption, thereby experiencing difficulties in meeting obligations; and/or
3. there is credit risk transfer through guarantees where one investment recipient providing the guarantee will take over part or all of the financial risk from the guaranteed investment recipient, excluding guarantees in the reinsurance and co-insurance mechanisms.

Letter e
Clearly sufficient.

Paragraph (2)
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Article 13B
Clearly sufficient.

Article 13C

Paragraph (1)
The action plan submitted by the Company is the Company's commitment to OJK.

Paragraph (2)
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Paragraph (4)
Clearly sufficient.

Paragraph (5)
Clearly sufficient.

Paragraph (6)
Clearly sufficient.

Number 12
Article 17

Paragraph (1)
Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Clearly sufficient.

Letter d
Clearly sufficient.

Letter e
Clearly sufficient.

Letter f
Clearly sufficient.

Letter g
Clearly sufficient.

Letter h
Clearly sufficient.

Letter i
Clearly sufficient.

Letter j
What is meant by "acquisition costs" are commission costs, policy costs, and overriding commission costs.

Letter k
What is meant by "right-of-use assets" are assets recognized by the Company based on lease contracts.

Paragraph (2)
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Paragraph (4)
Clearly sufficient.

Number 13
Article 19A
Clearly sufficient.

Number 14
Article 23
Clearly sufficient.

Number 15
Article 26

Paragraph (1)
Clearly sufficient.

Paragraph (2)
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Paragraph (4)
What is meant by "adjustment of Sub-fund investment portfolio" includes, among others, the reduction of investments in 1 (one) party that is not a Related Party from 1 (one) Sub-fund that has exceeded the investment limit on 1 (one) party that is not a Related Party to another Sub-fund that has not yet exceeded the investment limit on 1 (one) party that is not a Related Party.

What is meant by "not harming policyholders or insured parties" is the transfer of assets from 1 (one) Sub-fund to another Sub-fund is carried out at fair value, followed by the transfer of assets from the other Sub-fund to the respective Sub-fund at the same fair value, and is based on the company's analysis that the transferred assets are not in legal trouble and/or have not experienced a decline in investment performance.

Example 1:
Sub-fund 1 has investments in Share A that exceed the maximum investment limit on one party, while Sub-fund 2 does not yet have investments in Share A. The Company transfers part of the investment in Share A from Sub-fund 1 to Sub-fund 2 at fair value at the time, followed by the transfer of assets in the form of Islamic deposits from Sub-fund 2 to Sub-fund 1 with the same value. Before the asset transfer is carried out, the Company has conducted an analysis of the investment performance of Share A and there are no indications of deteriorating investment performance in Share A.

Example 2:
Sub-fund 1 needs liquidity while Sub-fund 2 has sufficient liquidity, then the Company transfers part of the cash/bank assets from Sub-fund 2 to Sub-fund 1, followed by the transfer of sukuk or Bond A from Sub-fund 1 to Sub-fund 2 using fair value. The Company has conducted an analysis of the investment performance of Bond A and there are no indications of deteriorating investment performance in Bond A.

Number 16
Article 27
Clearly sufficient.

Number 17
Article 28
Clearly sufficient.

Number 18
Article 29
Clearly sufficient.

Number 19
Article 29A

Paragraph (1)
What is meant by "net asset value" is the value of assets minus liabilities from each Sub-fund.

Paragraph (2)
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Paragraph (4)
Clearly sufficient.

Paragraph (5)
Clearly sufficient.

Paragraph (6)
Clearly sufficient.

Paragraph (7)
What is meant by "trading day" is the day when securities trading is held at the stock exchange, namely Monday to Friday, except if that day is a national holiday or declared as a stock exchange holiday by the stock exchange.

Number 20
Article 30
Clearly sufficient.

Number 21
Article 36
Clearly sufficient.

Number 22
Article 44

Paragraph (1)
Clearly sufficient.

Paragraph (2)
Clearly sufficient.

Paragraph (3)
Clearly sufficient.

Paragraph (4)
Clearly sufficient.

Paragraph (5)
Clearly sufficient.

Paragraph (6)
Clearly sufficient.

Paragraph (7)
Letter a
Clearly sufficient.

Letter b
Clearly sufficient.

Letter c
Clearly sufficient.

Letter d
Clearly sufficient.

Letter e
Clearly sufficient.

Letter f
Clearly sufficient.

Letter g
Clearly sufficient.

Letter h
Clearly sufficient.

Letter i
Clearly sufficient.

Letter j
Clearly sufficient.

Letter k
What is meant by "additional reports" includes, among others, reports regarding the Guarantee Fund, health ratios other than MMBR, education and training ratios, and other reports.

Paragraph (8)
Clearly sufficient.

Number 23
Article 44A
Clearly sufficient.

Number 24
Article 47
Clearly sufficient.

Number 25
Article 48
Clearly sufficient.

Number 26
Article 50
Clearly sufficient.

Number 27
Article 51
Deleted.

Number 28
Article 52
Deleted.

Number 29
Article 53
Deleted.

Number 30
Article 54
Deleted.

Number 31
Article 54A
What is meant by "disaster" is an event or series of events that threaten and disrupt the life and livelihood of the community, caused by natural and/or non-natural factors or human factors, thereby resulting in human casualties, environmental damage, property loss, psychological impacts, disruption of the performance of actors in the financial services sector, and/or affecting the economic conditions of the community.

Number 32
Article 55
Clearly sufficient.

Number 33
Article 55A
Clearly sufficient.

Number 34
Article 56
Deleted.

Number 35
Clearly sufficient.

Article II
Number 1
What is meant by "Affiliated Party" is a Party that has a relationship with one or more other Parties, such that one Party can influence the management or policies of the other Party or vice versa, including:

1. one Party has one or more directors or officials below the director level or commissioners, who also serve as directors or officials below the director level or commissioners on another Party;
2. one Party has one or more directors, commissioners, or controlling shareholders, who have family relationships due to marriage or descent up to the second degree, both horizontally and vertically, who serve as directors, commissioners, or controlling shareholders on another Party;
3. one Party owns at least 25% {twenty-five percent} of the shares of another Party;
4. one Party is the largest shareholder of another Party;
5. the Parties are controlled by the same controller; or
6. one Party has voting rights on another Party that are more than 50% {fifty percent} based on an agreement.

Affiliation relationships and/or other legal relationships with other Parties do not include relationships due to ownership or capital participation by the Republic of Indonesia state.

Number 2
Clearly sufficient.

Number 3
Clearly sufficient.

Number 4
Clearly sufficient.

Number 5
Clearly sufficient.

Number 6
Clearly sufficient.

Number 7
Clearly sufficient.

Number 8
Clearly sufficient.

Number 9
Clearly sufficient.

SUPPLEMENT TO THE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 33/OJK

APPENDIX I
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 5 YEAR 2023
CONCERNING
THE SECOND AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 71/POJK.05/2016 CONCERNING FINANCIAL HEALTH OF INSURANCE AND REINSURANCE COMPANIES

FORMAT OF THE REPORT ON THE DETAIL LIST OF RELATED PARTIES AND GROUPS OF INVESTMENT RECIPIENTS WHO ARE NOT RELATED PARTIES RECEIVING INVESTMENTS ON SUB-FUND ASSETS AND OTHER THAN SUB-FUNDS

No.	Fund Type	Name of Party	Code Name of Party	Related Party / Group of Investment Recipients who are Not Related Parties	Name of Group of Investment Recipients	Control Relationship	Ownership Percentage	Remarks
1	2	3	4	5	6	7	8

Remarks:

1. Fill in the fund type, namely "Sub-fund" or "Other than Sub-fund".
2. Fill in the name of the party where investments are placed from Sub-funds or other than Sub-funds.
3. Fill in the code name of the party as referred to in number 2, in accordance with the naming regulations applicable in the capital market or banking.
4. Fill in "Related Party" if the party in number 2 is a Related Party, or fill in "Group of Investment Recipients" if the party in number 2 is part of a Group of Investment Recipients who are Not Related Parties.
5. Fill in the name of the Group of Investment Recipients (Business Conglomerate) if the party in number 2 is part of a Group of Investment Recipients. The naming of the group is in accordance with the naming used by the Company in identifying the group.
6. Fill in the form of control relationship between the company and the Related Party, in the event that the party in number 2 is a Related Party, or fill in the form of control relationship between the parties within one Group of Investment Recipients who are Not Related Parties in the event that the party in number 2 is part of one Group of Investment Recipients who are Not Related Parties. The form of relationship consists of ownership, management, or financial.
7. Fill in the ownership percentage, in the event that the control form in number 6 is an ownership relationship.
8. Fill in other relevant information.

This copy is in accordance with the original.
Director of Law 1
Legal Department signed
Mufli Asmawidjaja

Determined in Jakarta on 5 April 2023
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
OF THE REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

APPENDIX II
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 5 YEAR 2023
CONCERNING
THE SECOND AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 71/POJK.05/2016 CONCERNING FINANCIAL HEALTH OF INSURANCE AND REINSURANCE COMPANIES

A. INVESTMENT PLACEMENT REPORT ON RELATED PARTIES RECEIVING INVESTMENTS FROM OTHER THAN SUB-FUNDS

Name of Party	Code Name of Party	Type of Investment	Investment Balance	AYD After Limit per Issuer/MI/Bank	AYD After Limit per Investment Type	AYD After Limit on Related Parties
1	2	3	4	5	6	7

Remarks:

1. Fill in the name of the party where investments are placed from other than Sub-funds.
2. Fill in the code name of the party as referred to in number 1, in accordance with the naming regulations applicable in the capital market or banking.
3. Fill in the code of the investment type.
4. Fill in the investment balance on the party as referred to in number 1 as of the report date.
5. Fill in the AYD balance after considering the investment limit per issuer, investment manager, bank, or other party receiving the investment placement.
6. Fill in the AYD balance after considering the investment limit as referred to in number 5 and the limit per investment type.
7. Fill in the AYD balance after considering the investment limit as referred to in number 6 and the investment limit on Related Parties.

B. INVESTMENT PLACEMENT REPORT ON ONE PARTY WHO IS NOT A RELATED PARTY RECEIVING INVESTMENTS FROM OTHER THAN SUB-FUNDS

Name of Party	Code Name of Party	Type of Investment	Investment Balance	AYD After Limit per Issuer/MI/Bank	AYD After Limit per Investment Type	AYD After Limit on One Party who is Not a Related Party
1	2	3	4	5	6	7

Remarks:

1. Fill in the name of the party where investments are placed from other than Sub-funds.
2. Fill in the code name of the party as referred to in number 1, in accordance with the naming regulations applicable in the capital market or banking.
3. Fill in the code of the investment type.
4. Fill in the investment balance on the party as referred to in number 1 as of the report date.
5. Fill in the AYD balance after considering the investment limit per issuer, investment manager, bank, or other party receiving the investment placement.
6. Fill in the AYD balance after considering the investment limit as referred to in number 5 and the limit per investment type.
7. Fill in the AYD balance after considering the investment limit as referred to in number 6 and the investment limit on Related Parties.

C. INVESTMENT PLACEMENT REPORT ON ONE GROUP OF INVESTMENT RECIPIENTS WHO ARE NOT RELATED PARTIES
RECEIVING INVESTMENTS FROM OTHER THAN SUB-FUNDS

Name of Group of Investment Recipients	Name of Party	Code Name of Party	Type of Investment	Investment Balance	AYD After Limit per Issuer/MI/Bank	AYD After Limit per Investment Type	AYD After Limit on One Group of Investment Recipients who are Not Related Parties
1	2	3	4	5	6	7	8

Remarks:

1. Fill in the name of the Group of Investment Recipients where investments are placed from other than Sub-funds.
2. Fill in the name of the party that is part of the group as referred to in number 1.
3. Fill in the code name of the party as referred to in number 2, in accordance with the coding regulations applicable in the capital market or banking.
4. Fill in the code of the investment type.
5. Fill in the investment balance on the party as referred to in number 2 as of the report date.
6. Fill in the AYD balance after considering the investment limit per issuer, investment manager, bank, or other party receiving the investment placement.
7. Fill in the AYD balance after considering the investment limit as referred to in number 5 and the limit per investment type.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja
8. Filled with the AYD balance after considering the investment limitations as referred to in item 6 and investment limitations with Related Parties.
Established in Jakarta on 5 April 2023
CHAIRMAN OF THE COMMISSIONER COUNCIL
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

APPENDIX III
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 5 OF 2023
CONCERNING
THE SECOND AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 71/POJK.05/2016 CONCERNING THE FINANCIAL HEALTH OF INSURANCE COMPANIES AND REINSURANCE COMPANIES

A. REPORT ON INVESTMENT PLACEMENT WITH RELATED PARTIES, ONE PARTY THAT IS NOT A RELATED PARTY, AND ONE INVESTMENT RECIPIENT GROUP THAT IS NOT A RELATED PARTY RECEIVING INVESTMENT FROM SUB-FUNDS

Description
Account
Name
Sub-Fund
Status
Assets
Type
Investment
Name
Country
Currency
Exchange Rate Code
Party
Name
Related
Party
Is the
Party a
Related
Party?
(Yes/No)
Name
Investment
Recipient
Group
Serial
Number
Category
Economic
Sector
1 2 3 4 5 6 7 8 9 10 11 12 13 14 row detail line-1 detail line -2 detail line -3 and thereafter Total

Name
Mutual
Fund
Name
Investment
Manager
(IM)
Cluster
Rating
Type
Collateral
Maturity
Period
(Days)
Market
Value
Collateral
Balance
At
Placement
Amount
(grams)
Balance %
NAV
Balance
Liquid
(Less than
One
Year)
Target
Rate of
Investment
Return
Rate of
Investment
Return
Description
15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

DESCRIPTION
1 Filled with the name of the investment portfolio in the Sub-Fund.
2 Filled with the name of the Sub-Fund.
3 Filled with the asset status based on its designation, namely "Sub-Fund Assets from Non-Guaranteed PAYDI", "Sub-Fund Assets from Guaranteed PAYDI", "Sub-Fund Back-Up Assets from Guaranteed PAYDI". The back-up assets referred to are assets provided by the Company to anticipate the addition of Sub-Funds from Guaranteed PAYDI. 4 Filled with the investment type code. 5 Filled with the name of the country of domicile of the investment recipient or issuer of the Sub-Fund. 6 Filled with the currency of the investment assets.

7 Filled with the Bank Indonesia middle exchange rate of the investment asset currency on the report date.
8 Filled with the code of the recipient or issuer party of the investment that is the underlying Sub-Fund.
9 Filled with the name of the recipient or issuer party of the investment that is the underlying Sub-Fund.
10 Filled with whether the recipient or issuer party of the investment is a "Related Party".
11 Filled with the name of the investment recipient group, in the event the recipient or issuer party of the investment is part of the Investment Recipient Group. 12 Filled with the serial number of the investment instrument that is the Sub-Fund portfolio, for example, the bond serial number. 13 Filled with "LPS Guaranteed" or "Government Guaranteed", or "Others". 14 Filled with the economic sector of the recipient or issuer party of the investment. 15 Filled with the name of the mutual fund, in the event the investment is a mutual fund. 16 Filled with the name of the investment manager, in the event the investment is managed by an investment manager. 17 Filled with the rating of the investment, in the event the investment is rated by a securities rating agency. 18 Filled with the cluster of the investment rating. 19 Filled with the type of asset that serves as collateral for the investment. 20 Filled with the investment maturity period. 21 Filled with the market value of the collateral from the assets serving as collateral for the investment. 22 Filled with the investment balance at the time of placement. 23 Filled with the weight, in the event the investment is in the form of gold. 24 Filled with the investment balance on the report date. 25 Filled with the percentage of investment compared to the total NAV of the Sub-Fund or net assets of the product providing benefit payments based on fund development results. 26 Filled with the investment balance that has a maturity of less than one year. 27 Filled with the target annual investment return rate. 28 Filled with the annual investment return rate.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja
Established in Jakarta on 5 April 2023
CHAIRMAN OF THE COMMISSIONER COUNCIL
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR
29 Filled with other relevant information.

APPENDIX IV
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 5 OF 2023
CONCERNING
THE SECOND AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 71/POJK.05/2016 CONCERNING THE FINANCIAL HEALTH OF INSURANCE COMPANIES AND REINSURANCE COMPANIES

FORMAT OF THE MONTHLY REPORT SUMMARY FORM AND STRUCTURE

A. Monthly Report for Life Insurance Companies PT LIFE INSURANCE ………….. ….(head office address)….. ………………………………………………………..
(in millions of rupiah) (in millions of rupiah) (in millions of rupiah)

I. INVESTMENTS
1 Time Deposits
2 Deposit Certificates
3 Shares
4 Corporate Bonds
5 MTN
6 Securities Issued by the Indonesian State
7 Securities Issued by Countries Other Than Indonesia 8 Securities Issued by Bank Indonesia 9 Securities Issued by Multinational Institutions 10 Mutual Funds 11 Asset-Backed Securities 12 Real Estate Investment Funds 13 REPO 14 Direct Participation 15 Land, Buildings with Strata Rights, or Land with Buildings, for Investment 16 Financing Through Cooperation with Other Parties (Executing) 17 Pure Gold 18 Loans Secured by Mortgage Rights 19 Policy Loans 20 Other Investments 21 Total Investments (1 to 20)

II. NON-INVESTMENTS
22 Cash and Banks
23 Premium Receivables - Direct Writing
24 Premium Receivables - Reinsurance
25 Reinsurance Receivables
26 Co-insurance Claim Receivables
27 Reinsurance Claim Receivables
28 Investment Receivables
29 Investment Return Receivables
30 Buildings with Strata Rights or Land with Buildings for Own Use 31 Deferred Acquisition Costs 32 Other Fixed Assets 33 Other Assets 34 Total Non-Investments (22 to 33) 35 Total Assets (21 + 34)

I. LIABILITIES
1 Claim Payables
2 Co-insurance Payables
3 Reinsurance Payables
4 Commission Payables
5 Tax Payables
6 Expenses Payable
7 Other Payables
8 Total Liabilities (1 to 7)

II. TECHNICAL RESERVES
9 Premium Reserves
10 Reserve for Premiums Not Yet Earned
11 Claim Reserves
12 Catastrophic Risk Reserve
13 Total Technical Reserves (9 to 12)

III. EQUITY
14 Total Liabilities (8 + 13)
15 Subordinated Loans
16 Paid-up Capital
17 Share Premium
18 Retained Earnings
19 Other Equity Components
20 Total Equity (16 to 19)
21 Total Liabilities and Equity (14 + 15 + 20)

I. INCOME
1 Premium Income
2 Deposit Interest
3 Investment Results
4 DPLC / Management Services Fees
5 Other Investment Income
6 Other Income
7 Total Income

II. EXPENSES
8 Claims and Benefits
9 Claims and Benefits Paid
10 Unit Redemption Claims
11 Reinsurance Claims
12 Increase (Decrease) in Premium Reserves
13 Increase (Decrease) in Claim Reserves
14 Increase (Decrease) in Catastrophic Risk Reserves 15 Total Claims and Benefits Expenses 16 Acquisition Expenses 17 Business Expenses 18 Marketing Expenses 19 General & Administrative Expenses 20 Employee and Management Expenses 21 Education and Training Expenses 22 Other General and Administrative Expenses 23 Management Expenses 24 Mortality Expenses 25 Other Business Expenses 26 Total Business Expenses 27 Total Expenses 28 Comprehensive Income (Loss) Statement 29 Comprehensive Income (Loss) 30 Other Comprehensive Income 31 Total Comprehensive Income (Loss)

A. Solvency Level a. Permitted Assets b. Liabilities (excluding Subordinated Loans)
c. Total Solvency Level
B. Risk-Based Minimum Capital (MMBC) a. Credit Risk b. Liquidity Risk
c. Market Risk
d. Insurance Risk e. Operational Risk f. Total MMBC
C. Excess (Deficiency) of Solvency Level
D. Achievement Ratio (%)* a. Investment Adequacy Ratio (%) b. Liquidity Ratio (%)
c. Investment Return to Net Premium Income Ratio (%)

Owners of the Company
Commissioners and Directors
Domestic Reinsurers
Name of Reinsurer %
Foreign Reinsurers

1. ……………………. ……..%
2. ……………………. ……..%
3. ……………………. ……..%
4. ……………………. ……..%

Monthly Report
As of December 31, 20x2 and 20x3

BALANCE SHEET
ASSETS 20x2 20x3
LIABILITIES AND EQUITY 20x2 20x3

COMPREHENSIVE INCOME (LOSS) STATEMENT
DESCRIPTION 20x2 20x3

FINANCIAL HEALTH INDICATORS
DESCRIPTION 20x2 20x3

SOLVENCY LEVEL ACHIEVEMENT
RATIOS OTHER THAN SOLVENCY LEVEL

*) In accordance with Article 3 paragraph (1), (2), and (3) of Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies, the solvency level achievement ratio is at least 100% with an internal target of at least 120% of MMBC.

B. Monthly Report for General Insurance Companies and Reinsurance Companies PT GENERAL INSURANCE & REINSURANCE ………….. ….(head office address)….. ……………………………………………………….. (in millions of rupiah) (in millions of rupiah) (in millions of rupiah)

I. INVESTMENTS
1 Time Deposits
2 Deposit Certificates
3 Shares
4 Corporate Bonds
5 MTN
6 Securities Issued by the Indonesian State
7 Securities Issued by Countries Other Than Indonesia 8 Securities Issued by Bank Indonesia 9 Securities Issued by Multinational Institutions 10 Mutual Funds 11 Asset-Backed Securities 12 Real Estate Investment Funds 13 REPO 14 Direct Participation 15 Land, Buildings with Strata Rights, or Land with Buildings, for Investment 16 Financing Through Cooperation with Other Parties (Executing) 17 Pure Gold 18 Loans Secured by Mortgage Rights 19 Policy Loans 20 Other Investments 21 Total Investments (1 to 20)

II. NON-INVESTMENTS
22 Cash and Banks
23 Premium Receivables - Direct Writing
24 Premium Receivables - Reinsurance
25 Reinsurance Receivables
26 Co-insurance Claim Receivables
27 Reinsurance Claim Receivables
28 Investment Receivables
29 Investment Return Receivables
30 Buildings with Strata Rights or Land with Buildings for Own Use 31 Deferred Acquisition Costs 32 Other Fixed Assets 33 Other Assets 34 Total Non-Investments (22 to 33) 35 Total Assets (21 + 34)

I. LIABILITIES
1 Claim Payables
2 Co-insurance Payables
3 Reinsurance Payables
4 Commission Payables
5 Tax Payables
6 Expenses Payable
7 Other Payables
8 Total Liabilities (1 to 7)

II. TECHNICAL RESERVES
9 Premium Reserves
10 Reserve for Premiums Not Yet Earned
11 Claim Reserves
12 Catastrophic Risk Reserve
13 Total Technical Reserves (9 to 12)

III. EQUITY
14 Total Liabilities (8 + 13)
15 Subordinated Loans
16 Paid-up Capital
17 Share Premium
18 Retained Earnings
19 Other Equity Components
20 Total Equity (16 to 19)
21 Total Liabilities and Equity (14 + 15 + 20)

I. UNDERWRITING INCOME
1 Gross Premium
2 Direct Writing Premium
3 Indirect Writing Premium
4 Total Gross Premium
5 Reinsurance Premium
6 Total Reinsurance Premium
7 Net Premium
8 Decrease (Increase) in Premium Reserves, CAPYBMP, and Catastrophic Reserves 9 Total Decrease (Increase) in Reserves 10 Net Premium Income 11 Other Net Underwriting Income 12 Total Underwriting Income

II. UNDERWRITING EXPENSES
13 Claim Expenses
14 Net Claim Expenses
15 Other Net Underwriting Expenses
16 Total Underwriting Expenses
17 UNDERWRITING RESULT
18 Investment Results
19 Business Expenses
20 Total Business Expenses
21 INSURANCE BUSINESS PROFIT (LOSS)
22 Other Results (Expenses)
23 Profit (Loss) Before Tax
24 Income Tax
25 Profit (Loss) After Tax
26 Other Comprehensive Income
27 Total Comprehensive Profit (Loss)

a. Direct Writing Premium b. Indirect Writing Premium
c. Commission Paid
d. Reinsurance Premium Paid e. Reinsurance Commission Received f. Total Reinsurance Premium

a. Credit Risk b. Liquidity Risk
c. Market Risk
d. Insurance Risk e. Operational Risk f. Total MMBC

C. Excess (Deficiency) of Solvency Level
D. Achievement Ratio (%)* a. Investment Adequacy Ratio (%) b. Liquidity Ratio (%)
c. Investment Return to Net Premium Income Ratio (%)

Owners of the Company
Commissioners and Directors
Domestic Reinsurers
Name of Reinsurer %
Foreign Reinsurers

1. ……………………. ……..%
2. ……………………. ……..%
3. ……………………. ……..%
4. ……………………. ……..%

Monthly Report
As of December 31, 20x2 and 20x3

BALANCE SHEET
ASSETS 20x2 20x3
LIABILITIES AND EQUITY 20x2 20x3

COMPREHENSIVE INCOME (LOSS) STATEMENT
DESCRIPTION 20x2 20x3

FINANCIAL HEALTH INDICATORS
DESCRIPTION 20x2 20x3

SOLVENCY LEVEL ACHIEVEMENT
RATIOS OTHER THAN SOLVENCY LEVEL

*) In accordance with Article 3 paragraph (1), (2), and (3) of Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies, the solvency level achievement ratio is at least 100% with an internal target of at least 120% of MMBC.

Commissioners and Directors
Domestic Reinsurers
Name of Reinsurer %
Foreign Reinsurers

1. ……………………. ……..%
2. ……………………. ……..%
3. ……………………. ……..%
4. ……………………. ……..%