Second Amendment to POJK Number 1/POJK.05/2016 on Government Securities Investment for Non-Bank Financial Service Institutions

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 56 /POJK.05/2017
CONCERNING
THE SECOND AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 1/POJK.05/2016 CONCERNING INVESTMENT IN GOVERNMENT SECURITIES FOR NON-BANK FINANCIAL SERVICE INSTITUTIONS BY THE GRACE OF GOD THE ALMIGHTY, THE COMMISSIONERS' COUNCIL OF THE FINANCIAL SERVICES AUTHORITY, Considering: a. that in order to expand investment instrument options for non-bank financial service institutions without disregarding safety aspects, suitability with the liability characteristics of non-bank financial service institutions, and the returns obtained as well as the role of domestic investors in national development financing, it is necessary to refine the Financial Services Authority Regulation Number 1/POJK.05/2016 concerning Investment in Government Securities for Non-Bank Financial Service Institutions as amended by the Financial Services Authority Regulation Number 36/POJK.05/2016 concerning Amendment to the Financial Services Authority Regulation Number 1/POJK.05/2016 concerning Investment in Government Securities for Non-Bank Financial Service Institutions; b. that based on the considerations as referred to in letter a, it is necessary to establish

the Financial Services Authority Regulation concerning the Second Amendment to the Financial Services Authority Regulation Number 1/POJK.05/2016 concerning Investment in Government Securities for Non-Bank Financial Service Institutions; Recalling: 1. Law Number 11 of 1992 concerning Pension Funds (State Gazette of the Republic of Indonesia Year 1992 Number 37, Supplement to the State Gazette of the Republic of Indonesia Number 3477);
2. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
3. Law Number 24 of 2011 concerning Social Security Administrating Bodies (State Gazette of the Republic of Indonesia Year 2011 Number 116, Supplement to the State Gazette of the Republic of Indonesia Number 5256);
4. Law Number 40 of 2014 concerning Insurance (State Gazette of the Republic of Indonesia Year 2014 Number 337, Supplement to the State Gazette of the Republic of Indonesia Number 5618);
5. Law Number 1 of 2016 concerning Guarantees (State Gazette of the Republic of Indonesia Year 2016 Number 9, Supplement to the State Gazette of the Republic of Indonesia Number 5835);
6. Financial Services Authority Regulation Number 1/POJK.05/2016 concerning Investment in Government Securities for Non-Bank Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2016 Number 7, Supplement to the State Gazette of the Republic of Indonesia Number 5834);
7. Financial Services Authority Regulation Number 36/POJK.05/2016 concerning Amendment to the Financial Services Authority Regulation Number 1/POJK.05/2016

concerning Investment in Government Securities for Non-Bank Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2016 Number 238, Supplement to the State Gazette of the Republic of Indonesia Number 5947); DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE SECOND AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 1/POJK.05/2016 CONCERNING INVESTMENT IN GOVERNMENT SECURITIES FOR NON-BANK FINANCIAL SERVICE INSTITUTIONS.
Article I
The provisions of Article 4A in the Financial Services Authority Regulation Number 1/POJK.05/2016 concerning Investment in Government Securities for Non-Bank Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2016 Number 7, Supplement to the State Gazette of the Republic of Indonesia Number 5834) as amended by the Financial Services Authority Regulation Number 36/POJK.05/2016 concerning Amendment to the Financial Services Authority Regulation Number 1/POJK.05/2016 concerning Investment in Government Securities for Non-Bank Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2016 Number 238, Supplement to the State Gazette of the Republic of Indonesia Number 5947), are amended to read as follows:
Article 4A
(1) Non-Bank Financial Service Institutions may fulfill the minimum investment placement limit for Government Securities (SBN) as referred to in Article 2 and Article 3 by making investment placements in:
a. bonds and/or sukuk issued by state-owned enterprises, local government-owned enterprises, and/or subsidiaries of state-owned enterprises, where the use of funds is for infrastructure financing; b. asset-backed securities where the use of funds is for infrastructure financing conducted by state-owned enterprises, local government-owned enterprises, and/or subsidiaries of state-owned enterprises;
c. limited participation mutual funds where the use of funds is for infrastructure financing conducted by state-owned enterprises, local government-owned enterprises, and/or subsidiaries of state-owned enterprises; and/or
d. investment instruments other than the investment instruments as referred to in letters a through c, where the use of funds is for government infrastructure project financing. (2) Investment placements by Non-Bank Financial Service Institutions in investment instruments as referred to in paragraph (1) letters a through d that can be counted towards fulfilling the minimum investment placement limit for Government Securities (SBN) are subject to the condition that the maximum amount is 50% (fifty percent) of the minimum limit required as referred to in Article 2 and Article 3. (3) Investment placements in bonds and/or sukuk as referred to in paragraph (1) letter a must be made in bonds and/or sukuk that are listed on the Indonesian stock exchange or in the electronic trading platform (ETP) system in Indonesia and have a rating of at least investment grade from a securities rating company recognized by the OJK. (4) Investment placements in asset-backed securities as referred to in paragraph (1) letter b must meet the following provisions:
a. have received an effectiveness statement from the OJK; b. have a rating of at least investment grade from a securities rating company recognized by the OJK; and
c. are conducted through a public offering as regulated in capital market legislation.
(5) Investment placements in limited participation mutual funds as referred to in paragraph (1) letter c must be made in limited participation mutual funds that have been registered with the OJK. (6) Fulfillment of the requirement to have an investment grade rating as referred to in paragraph (3) and paragraph (4) is done at the time of investment placement. (7) Investment placements by Non-Bank Financial Service Institutions in investment instruments as referred to in paragraph (1) may exceed the investment limits as regulated in provisions concerning Non-Bank Financial Service Institution investments. (8) The provisions as referred to in paragraph (7) do not apply to BPJS Kesehatan and BPJS Ketenagakerjaan. (9) Further provisions regarding investment instruments as referred to in paragraph (1) letter d are regulated in an OJK Circular Letter.
Article II
This OJK Regulation shall come into force on the date of its promulgation.

This copy is in accordance with the original
Director of Law 1
Law Department signed
Yuliana
In order that everyone may know it, order the promulgation of this OJK Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on August 28, 2017
CHAIRMAN OF THE COMMISSIONERS' COUNCIL
FINANCIAL SERVICES AUTHORITY, signed
WIMBOH SANTOSO
Promulgated in Jakarta on August 29, 2017
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 192