SEOJK on the Submission of Information in the Context of Marketing Financial Products and/or Financial Services

To:
Directors or Management of Financial Business Actors, At Your Office

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 12/SEOJK.07/2014 ON THE SUBMISSION OF INFORMATION IN THE CONTEXT OF MARKETING FINANCIAL PRODUCTS AND/OR FINANCIAL SERVICES

In relation to Financial Services Authority Regulation Number 01/POJK.07/2013 dated August 6, 2013 concerning Consumer Protection in the Financial Services Sector (State Gazette of the Republic of Indonesia Year 2013 Number 118 and Supplement to the State Gazette of the Republic of Indonesia Number 5431), and the needs of Financial Business Actors (PUJK), Consumers, and/or the public for implementation guidelines regarding the submission of information in the context of marketing financial products and/or financial services, it is necessary to regulate provisions regarding the submission of information in the context of marketing financial products and/or financial services in this Circular Letter of the Financial Services Authority as follows:

I. GENERAL PROVISIONS
In this Circular Letter of the Financial Services Authority, the following terms are defined:

1. Advertisement is a form of communication through Media regarding products and/or services to the public to achieve specific objectives.
2. Media is a communication medium to convey information regarding products and/or services to Consumers and/or the public.
3. Accurate Information is information based on clear references that are both quantitative and qualitative.
4. Honest Information is information that corresponds to the actual conditions.
5. Clear Information is information conveyed completely.
6. Non-misleading Information is information that does not cause differences in interpretation between Consumers and/or the public and PUJK regarding the provisions contained in the agreement.

II. CONSUMER GOOD FAITH

1. PUJK has the right to ensure the existence of Consumer good faith and to obtain information and/or documents regarding Consumers that are accurate, honest, clear, and non-misleading.
2. To ensure Consumer good faith as referred to in item 1, PUJK may:
   a. request Consumers to fulfill agreements between Consumers and PUJK; b. request Consumers to comply with provisions regulated in financial services legislation;
   c. examine the correspondence of documents containing Consumer information with actual facts. For example, Consumer identity corresponding to the Consumer's place of residence; if necessary, conduct adequate surveys and interview Consumers to investigate and verify the truthfulness of information contained in documents submitted by Consumers;
   d. request Consumers to sign a Statement of Declaration stating that all information and/or documents provided to PUJK are true.

III. MAIN POINTS REGARDING INFORMATION ON PRODUCTS AND/OR SERVICES

1. PUJK is obligated to provide and/or submit information regarding products and/or services that is accurate based on clear references used by PUJK when conveying information about products and/or services that are quantitative and qualitative. For example, statements regarding products and/or services that are profitable must be able to provide comparisons when explaining to Consumers and/or the public, or may use assessments from independent agencies that conduct assessments and disclose the assessment period.
2. PUJK is obligated to provide and/or submit information regarding products and/or services that is honest based on actual information about benefits, costs, and risks of each product and/or service. This information must be submitted by PUJK when conducting marketing activities, when making agreements with Consumers and/or the public, and if changes occur when Consumers use and/or utilize products and/or services provided by PUJK.
3. PUJK is obligated to provide and/or submit information regarding products and/or services that is clear based on complete information regarding benefits, costs, and risks, including confirming with Consumers and/or the public regarding the explanations provided. Consumer and/or public confirmation of the explanations provided by PUJK is conducted by signing a statement when making an agreement or other evidence stating confirmation approval, between Consumers and/or the public and PUJK. Information regarding products and/or services that is clear also takes into account provisions based on Sharia principles.
4. PUJK is obligated to provide and/or submit information regarding products and/or services that is non-misleading so as not to cause differences in interpretation between Consumers and/or the public and PUJK regarding the provisions contained in the agreement.

The asterisk () mark in Media Advertisements may only be used to provide more detailed explanations or sources for statements bearing such marks.
The asterisk () mark in Media Advertisements must not be used to hide or mislead Consumers and/or the public regarding the actual quality, performance, or price of the advertised products and/or services, or regarding the unavailability of prizes for certain products and/or services.

5. The obligation to submit information as referred to in items 1, 2, 3, and 4 includes providing summaries of product and/or service information, marketing activities, Advertisements, and other things that can be equated with them.
6. PUJK is obligated to submit information regarding the realization of issuance and/or changes to features of financial products and/or services requiring approval from OJK, no later than 7 working days after the products and/or services are implemented. This information is submitted to the relevant Supervision Division with a copy to the Education and Consumer Protection Division – Financial Services Authority via letter and email at the address konsumen@ojk.go.id.

IV. PROVISIONS REGARDING INFORMATION CONTAINED IN MEDIA ADVERTISEMENTS

In conveying information contained in Advertisements across various media, including print media, electronic media, outdoor media, or equivalents, PUJK is obligated to provide and/or submit information regarding products and/or services that is accurate, honest, clear, and non-misleading. The aforementioned information must meet the following requirements:

1. Language
   a. Advertisements must be conveyed in a language easily understood by Consumers and/or the public. b. Advertisements are prohibited from using superlative words such as "most," "number one," "the only one," "top," words starting with "ter-", or words that can be equated with them. In cases where superlative words are used, evidence or sources that can be accounted for must be included.
   c. Advertisements are prohibited from including the word "free" or words with similar meanings if Consumers still pay other costs related to the purchase or use of PUJK products and/or services.

2. Money-Back Promise
   If an Advertisement promises a refund to Consumers for the purchase of a product or use of a service, the conditions for the refund must be stated clearly and completely, including the types of conditions that must be met and the duration of the refund validity.

3. Consumer Testimonials and Recommendations
   a. Testimonials and recommendations may only be given in the name of:

1. individuals, not representing institutions, groups, classes, or the general public; or
2. individuals representing Consumers in the form of legal entities.
   b. Consumer testimonials must be proven by a written statement signed by the Consumer and accompanied by the identity and address of the testimonial provider.
   c. Advertisements containing Consumer testimonials or information from celebrities, famous figures, or media commentators must reflect experiences that are true and must be conveyed honestly, without the intent to exaggerate, and must only contain reasonable opinions about the products and/or services.

4. Prize Availability
   Advertisements promising specific prizes are prohibited from stating "while supplies last" or words with similar meanings. Such advertisements must include the number of prizes and/or a specific duration provided by PUJK.

5. Processes in accordance with procedures and non-misleading offers:
   a. Advertisements promising fast and instant processes must adhere to applicable standard regulations and procedures. b. Advertisements must clearly state when offering products and/or services with specific benefits that stand alone and cannot be taken simultaneously.

6. Past Performance and Performance Projections
   a. Advertisements citing past performance must state that past performance does not indicate future performance projections. b. Information regarding performance projections may only be used in Advertisements if relevant and there is a strong basis for display so as not to mislead.
   c. Advertisements presenting performance projections must include a disclaimer that such projections are not guaranteed to be achieved.

7. Use of Research Data
   a. Research data must not be processed or manipulated in such a way that its appearance in Advertisements can mislead Consumers and/or the public. b. Advertisements citing research results must mention the data source.

V. INFORMATION SERVICES OF FINANCIAL BUSINESS ACTORS

1. PUJK is obligated to provide various communication media facilities that are easy for Consumers and/or the public to access, at minimum including letters, email, telephone, fax, and websites.
2. In cases where PUJK uses communication facilities across various media, PUJK is obligated to ensure that such communication facilities are always updated and accessible.
3. Information conveyed through websites must at least contain the following:
   a. company profile, which completely includes:

1. permits from the Financial Services Authority or other authorities prior to the establishment of OJK;
2. organizational structure and names of PUJK officials, at minimum Commissioners, Directors, and Regional Heads; and
3. network, addresses, and telephone numbers of regional/branch offices;
   b. summaries of information for all products and/or services as referred to in Chapter VI of this Circular Letter of the Financial Services Authority;
   c. procedures and methods of transaction;
   d. information on service procedures and complaint resolution; e. implementation of Corporate Governance contained in the Annual Report; and f. other information, whether mandated by other regulations or required by PUJK.

4. In cases where information is conveyed through personal communication facilities (telephone, text message, email, and equivalents) or direct visits, the following must be met:
   a. communication may only be conducted from Monday to Saturday, excluding national holidays, from 08.00 – 18.00 local time, unless with the approval or request of prospective Consumers or Consumers; b. inform the name of PUJK and explain the purpose beforehand before offering PUJK products and/or services; and
   c. In cases where PUJK uses personal communication facilities in the form of telephone:

1. PUJK is obligated to provide and use voice recording devices;
2. if necessary as evidence of legal acts performed by Consumers and PUJK in Court and/or required by the Supervision Division, it must be presented in printed results and/or letters signed by Consumers; and
3. voice recording devices conveying Consumer approval presented in printed results can be equated with written approval statements signed by Consumers.

VI. COMPOSITION OF INFORMATION SUMMARIES REGARDING PRODUCTS AND/OR SERVICES

1. PUJK is obligated to compile and provide summaries of product and/or service information.
2. Summaries of information regarding products and/or services are not agreement documents and differ from offer documents such as brochures and leaflets.
3. Summaries of information regarding products and/or services must be provided at the time of:
   a. explaining to Consumers regarding their rights and obligations; and/or b. making agreements with Consumers.
4. Summaries of product and/or service information as referred to in item 1 must be made in writing, containing at least:
   a. name and type of products and/or services
   The term "name of products and/or services" refers to the designation used by PUJK to describe products and/or services. The term "type of products and/or services" refers to the classification used by PUJK to group products and/or services according to their type and characteristics. b. issuer name The term "issuer name" refers to the name of the PUJK that has issued the type of products and/or services.
   c. summary data
   The term "summary data" refers to data explaining the characteristics of products and/or services, including the validity period of the products and/or services. d. benefits The term "benefits" refers to advantageous outcomes obtained from purchasing a product or utilizing a service. Additionally, methods of benefit provision and methods for calculating benefits in the form of interest or profit-sharing must be explained. e. risks The term "risks" refers to negative impacts that may cause losses due to ongoing processes or future events occurring in the ownership, use, and/or utilization of products and/or services. f. requirements and procedures Mechanisms and/or procedures that Consumers must fulfill when using, purchasing, or utilizing products and/or services. Information to be fulfilled includes the following:

1. Documents that Consumers must prepare, including the obligation for Consumers to provide information and/or data according to actual conditions and the consequences if Consumers do not provide information and/or data truthfully; and
2. Procedures that can be taken in case of complaints regarding the purchase of products and/or utilization of services.
   g. costs
   The term "costs" refers to all financial charges to Consumers, including opening fees, interest fees, insurance fees, commission/provision fees, fines, and penalties. Additionally, methods of charging costs, installment amounts, payment periods, interest calculation methods, and the use of products and/or services in a package with other products and/or services must be explained. h. Simulation The term "simulation" refers to a trial process based on the characteristics of products and/or services and influencing conditions, using specific calculations. Provided simulations must use several calculation scenarios: best-case calculations, standard calculations, and worst-case calculations. Additionally, past performance may be disclosed.
   i. additional information
   In cases where PUJK has information other than the above, it may be included as additional information.

VII. THIRD PARTIES ACTING ON BEHALF OF FINANCIAL BUSINESS ACTORS

1. PUJK is responsible to Consumers for actions taken by third parties acting on behalf of PUJK, for example, in marketing PUJK products and/or services.
2. Third parties conducting marketing must submit all information and data contained in the summary of product and/or service information as referred to in Chapter VI item 4 of this Circular Letter of the Financial Services Authority.
3. Third parties conducting marketing must submit information and data simply, in accordance with facts, without elements of deception/fraud, understandable by Consumers, and not causing multiple interpretations.

VIII. TRANSITIONAL PROVISIONS

The obligation regarding the submission of information through websites as regulated in Chapter V item 1 must be fulfilled no later than December 31, 2015.

IX. CLOSING PROVISIONS

Provisions in this Circular Letter of the Financial Services Authority take effect on August 6, 2014.

To ensure that everyone knows this, the publication of this Circular Letter of the Financial Services Authority is ordered by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta
On July 24, 2014

MEMBER OF THE BOARD OF COMMISSIONERS FOR
EDUCATION AND CONSUMER PROTECTION,
Signed,
KUSUMANINGTUTI S. SOETIONO

STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 63 DATED AUGUST 8, 2014

Copy in accordance with the original
Legal Director 1
Legal Department,
Signed,
Tini Kustini