SEOJK regarding Products and Activities of Sharia People's Financing Banks — OJK — ID

To:
Directors of Sharia People's Financing Banks
At your location.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 37/SEOJK.03/2015 REGARDING PRODUCTS AND ACTIVITIES OF SHARIA PEOPLE'S FINANCING BANKS

In view of the issuance of Financial Services Authority Regulation Number 24/POJK.03/2015 Regarding Products and Activities of Sharia Banks and Sharia Business Units (State Gazette of the Republic of Indonesia Year 2015 Number 289, Supplement to the State Gazette of the Republic of Indonesia Number 5771), it is necessary to regulate implementation provisions regarding Products and Activities of Sharia People's Financing Banks in this Circular Letter of the Financial Services Authority as follows:

I. GENERAL

The implementation of business activities of Sharia People's Financing Banks (BPRS) is carried out, among others, by issuing Products and/or carrying out specific Activities to meet the needs of BPRS and/or customers.
In issuing Products and/or carrying out Activities, BPRS must apply Sharia Principles, prudential principles, and customer protection principles. Furthermore, BPRS must apply adequate risk management to mitigate risks arising from such Products and/or Activities.

II. PRODUCTS AND/OR ACTIVITIES OF BPRS

The issuance of Products and/or implementation of BPRS Activities is grouped as follows:

Fund Collection
Fund collection activities include:
a. deposits (savings); b. investment (savings, time deposits);
c. received loans/financing; and
d. other fund collection activities commonly carried out by BPRS as long as they do not conflict with legislation and Sharia Principles.
Fund Distribution
Fund distribution activities include:
a. financing based on profit-sharing principles (mudharabah, musyarakah, musyarakah mutanaqisah), leasing principles (ijarah, ijarah muntahiya bittamlik, multijasa), sales principles (murabahah, istishna’, salam), and lending principles (qardh); b. refinancing;
c. debt or financing transfer; and
d. other fund distribution activities commonly carried out by BPRS as long as they do not conflict with legislation and Sharia Principles.
Fund Placement
Fund placement in the form of:
a. current accounts, time deposits, Sharia certificates of deposit, and/or savings at conventional Sharia banks and Sharia business units; b. time deposits and/or savings at BPRS; and
c. current accounts and/or savings at conventional commercial banks for the purpose of fund transfers for BPRS and BPRS customers.
Foreign Exchange Trading Activities
Other Activities
Other activities include:
a. activities as organizers and agents for financial services without offices in the context of inclusive finance (Laku Pandai); b. provision of electronic banking services such as phone banking, SMS banking, mobile banking, internet banking;
c. mass employee payroll payment services (payroll);
d. cooperation activities limited to receiving funds from abroad; e. activities as issuers of Automated Teller Machines (ATM) and/or debit cards; f. activities as issuers of electronic money (electronic money) and marketing activities for electronic money issued by other institutions; g. fund transfers, both for the benefit of the BPRS itself and for customers, through BPRS accounts at conventional Sharia banks or Sharia business units; h. Safe Deposit Box (SDB);
i. cooperation activities with insurance companies to refer Sharia insurance products to customers related to BPRS Products;
j. receiving entrusted funds for bill payment services such as electricity, telephone, water, and tax payments; and k. other activities commonly carried out by BPRS as long as they do not conflict with legislation and Sharia Principles.

III. CRITERIA FOR NEW PRODUCTS AND ACTIVITIES

New Products and/or Activities are Products and/or Activities that meet the following criteria:
a. have never been previously issued or implemented by the respective Bank; or b. have been previously issued or implemented by the Bank but feature feature or characteristic development.

The term feature or characteristic development includes the addition and/or replacement of features or characteristics that cause changes or increases in the risk profile of Products and/or Activities previously issued.

Examples of Products that undergo feature or characteristic development but do not cause changes or increases in risk profile are fixed-term savings products that undergo changes in duration and/or nominal value.

Examples of Products that undergo feature or characteristic development and cause changes or increases in risk profile include financing with musyarakah mutanaqisah contracts for objects that were previously ready stock becoming ready stock and inden (pre-order).

IV. INCLUSION OF PLANS FOR ISSUANCE OF NEW PRODUCTS AND/OR IMPLEMENTATION OF NEW ACTIVITIES IN BPRS BUSINESS PLANS/WORK PLANS

Plans for the issuance of new Products and/or implementation of new Activities included in BPRS business plans/work plans must contain at least the following information and explanations:

type and general description of new Products and/or Activities;
timing for the issuance of new Products and/or implementation of new Activities;
objectives or benefits of the issuance of new Products and/or implementation of new Activities;
relevance of new Products and/or Activities to BPRS business strategy;
risks arising from the issuance of new Products and/or implementation of new Activities; and
risk mitigation for the issuance of new Products and/or implementation of new Activities.

The inclusion of plans for the issuance of new Products and/or implementation of new Activities uses the format as referred to in Appendix I.

V. SCOPE OF POLICIES AND PROCEDURES FOR RISK MANAGEMENT

The scope of policies and procedures for risk management of new Products and/or Activities must cover at least:

Identification of all risks related to new Products and/or Activities;
Analysis of legal and compliance aspects for new Products and/or Activities; and
Systems and operational procedures as well as authorities in the management of new Products and/or Activities.

VI. LICENSING OF NEW PRODUCTS AND/OR ACTIVITIES

BPRS must obtain approval from the Financial Services Authority (OJK) to issue Products and/or implement new Activities if the new Products and/or Activities are not listed in the BPRS Product and Activity Codification. Such Products and/or Activities must have been included in the BPRS business plan/work plan.

BPRS if such Products and/or Activities have never been previously issued or implemented by BPRS.

BPRS may issue Products and/or implement new Activities without OJK approval if the new Products and/or Activities have:
a. been listed in the BPRS Product and Activity Codification; b. been included in the BPRS business plan/work plan; and
c. been supported by adequate operational readiness.
The inclusion of new Products and/or Activities in the BPRS business plan/work plan as referred to in paragraph 2 letter b applies to new Products and/or Activities that meet the criteria of having never been previously issued or implemented by BPRS.
Definitions or general characteristics of Products and Activities as referred to in paragraphs 1 and 2 refer to Appendix II.
The scope of BPRS Products and Activities refers to Appendix III.
The BPRS Product and Activity Codification refers to Appendix IV.

VII. APPLICATION FOR APPROVAL OF ISSUANCE OF NEW PRODUCTS AND/OR IMPLEMENTATION OF NEW ACTIVITIES

Applications for approval for the issuance of new Products and/or implementation of new Activities are submitted by BPRS to the Financial Services Authority at least 30 (thirty) working days prior to the issuance of Products and/or implementation of new Activities, using the sample letter format as referred to in Appendix V.1, accompanied by supporting documents containing at least the following information and explanations:

general explanation of new Products and/or Activities, including:
a. type and name of new Products and/or Activities; b. planned timing for the issuance of new Products and/or implementation of new Activities; and
c. information regarding features or characteristics of Products to be issued and/or Activities to be implemented;
benefits and costs for BPRS;
benefits and risks for customers;
standard operating procedures containing among others definitions; relevant provisions; characteristics; target market or customers; process flow (flowchart) and implementation procedures according to the process flow; accounting journals; policies regarding transparency and customer protection; and handling of problematic customers (if it is a financing Product);
plans for policies and procedures related to the implementation of Anti-Money Laundering and Counter-Financing of Terrorism (APU and PPT) programs;
results of legal and compliance analysis of new Products and/or Activities;
Sharia opinion from the Sharia Supervisory Board (DPS) regarding new Products and/or Activities, covering at least:
a. new Products and/or Activities are based on fatwas of the National Sharia Board – Indonesian Ulema Council (DSN – MUI); b. the relevance of new Products and/or Activities to DSN-MUI fatwas, covering at least:
1) the contract used and fulfillment of elements in the contract used;
2) transaction objects and purposes of use;
3) relevance of bonus/nisbah profit-sharing/margin/ujrah/fee determinations to the contract used, including in cases requiring review of profit-sharing/margin/ujrah ratios (for fund distribution products);
4) determination of administrative fees; and
5) determination of prizes, penalties/sanctions and/or compensation, discounts, accelerated repayment, and treatment of collateral, if any.
c. standard operating procedures for new Products and/or Activities regarding compliance with Sharia Principles; and
d. results of reviews of contract concepts/agreements/application forms for new Products and/or Activities regarding compliance with Sharia Principles;
contract/agreement/application form concepts containing at least:
a. identity of the parties; b. contract used;
c. detailed and clear description of values and objects of the agreement;
d. rights and obligations of the parties; e. contract implementation mechanisms; f. duration; g. bonuses/nisbah profit-sharing/margin/ujrah/fees; h. collateral objects, if any;
i. details of related costs;
j. dispute resolution mechanisms in case of disputes/disagreements; k. the agreement contains the statement: “This agreement has been adjusted to applicable legislation including Financial Services Authority Regulations”; and
operational readiness including human resources and information technology.

The Sharia opinion from the DPS as referred to in paragraph 7 uses the sample letter format as referred to in Appendix V.2, which is an integral part of this Circular Letter of the Financial Services Authority.

VIII. REPORT ON REALIZATION OF ISSUANCE OF NEW PRODUCTS AND/OR IMPLEMENTATION OF NEW ACTIVITIES

Reports on the realization of issuance of new Products and/or implementation of new Activities that have received OJK approval are submitted by BPRS to OJK at least 7 (seven) working days, using the sample letter format as referred to in Appendix V.3, accompanied by supporting documents explaining the relevance of newly issued Products and/or newly implemented Activities to Products and/or Activities approved by OJK.
Reports on the realization of issuance of new Products and/or implementation of new Activities that do not require OJK approval are submitted by BPRS to OJK at least 7 (seven) working days after the issuance of Products and/or implementation of new Activities, using the sample letter format as referred to in Appendix V.4, accompanied by supporting documents as follows:
a. general summary of new Products and/or Activities, covering at least:
1) type and name of new Products and/or Activities;
2) date of issuance of Products and/or implementation of new Activities;
3) relevance of newly issued Products or newly implemented Activities to the BPRS Product and Activity Codification;
4) benefits and costs for BPRS;
5) benefits and risks for customers;
6) target market or customers;
7) characteristics of Products or Activities;
8) process flow (flowchart) and implementation procedures according to the process flow of Products or Activities;
9) accounting journals;
10) policies regarding transparency and customer protection; and
11) handling of problematic customers (if it is a financing Product);
b. standard operating procedures containing among others definitions; relevant provisions; characteristics; target market or customers; process flow (flowchart) and implementation procedures according to the process flow; accounting journals; policies regarding transparency and customer protection; and handling of problematic customers (if it is a financing Product);
Realization of the issuance of new Products and/or implementation of new Activities is calculated from the date the Products and/or Activities can be purchased or utilized by customers.

IX. REPORT ON PLANS TO CEASE BPRS PRODUCTS AND/OR ACTIVITIES

Reports on plans to cease BPRS Products and/or Activities are submitted by BPRS to OJK at least 10 (ten) working days before the implementation of the cessation of Products and/or Activities of BPRS, using the sample letter format as referred to in Appendix V.5, accompanied by supporting documents containing at least:

reasons for cessation;
director's statement regarding responsibility for the cessation decision; and
explanation of steps to be taken to settle or transfer all obligations to customers and other parties.

X. REPORT ON REALIZATION OF CEASATION OF PRODUCTS AND/OR ACTIVITIES AT THE INITIATIVE OF BPRS

Reports on the realization of the cessation of BPRS Products and/or Activities are submitted by BPRS to OJK at least 7 (seven) working days after the cessation of Products and/or Activities of BPRS, referring to the letter format as referred to in Appendix V.6, accompanied by supporting documents containing at least an explanation of steps taken to settle or transfer all obligations to customers and other parties.

XI. REPORT ON REALIZATION OF TEMPORARY CEASATION, IMPROVEMENT REPORTS, AND REPORT ON REALIZATION OF RE-ISSUANCE OF PRODUCTS AND/OR RE-IMPLEMENTATION OF ACTIVITIES OF BPRS BY ORDER OF THE FINANCIAL SERVICES AUTHORITY

Reports on the realization of temporary cessation of Products and/or Activities of BPRS by order of OJK are submitted by BPRS to OJK at least 7 (seven) working days after the cessation of Products and/or Activities of BPRS, using the sample letter format as referred to in Appendix V.7.
Reports on the improvement of Products and/or Activities following temporary cessation are submitted by BPRS to OJK within the timeframe set by OJK, using the sample letter format as referred to in Appendix V.8.
Reports on the realization of re-issuance of Products and/or re-implementation of Activities of BPRS because OJK has lifted the temporary cessation are submitted by BPRS to OJK at least 7 (seven) working days after the re-issuance of Products and/or re-implementation of Activities, using the sample letter format as referred to in Appendix V.9.

XII. REPORT ON REALIZATION OF PERMANENT CEASATION AND REPORT ON ACTION PLANS FOR PRODUCTS AND/OR ACTIVITIES OF BPRS BY ORDER OF THE FINANCIAL SERVICES AUTHORITY

Reports on the realization of permanent cessation of Products and/or Activities of BPRS by order of OJK are submitted by BPRS to OJK at least 7 (seven) working days after the cessation of Products and/or Activities of BPRS, using the sample letter format as referred to in Appendix V.10.
Reports on action plans following permanent cessation of Products and/or Activities of BPRS are submitted by BPRS to OJK at least 20 (twenty) working days after the date of the cessation letter for Products and/or Activities, using the sample letter format as referred to in Appendix V.11.

XIII. SUBMISSION OF APPROVAL REQUESTS OR SUBMISSION OF REPORTS

Requests for approval and/or submission of reports are submitted by BPRS to OJK at the following addresses:
a. Sharia Banking Department, for BPRS headquartered in the Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodebek) area, and Banten Province; or b. Regional Office or local Financial Services Authority Office for BPRS headquartered outside the Jakarta, Bogor, Depok, Tangerang, and Bekasi (Jabodebek) area, and Banten Province.
In the event that OJK has provided an electronic licensing system, requests for approval and/or submission of reports are submitted to OJK referring to the mechanisms and procedures as stipulated in regulations regarding electronic licensing.

XIV. OTHERS

Appendix I, Appendix II, Appendix III, Appendix IV, and Appendix V are an integral part of this Circular Letter of the Financial Services Authority.

XV. CLOSING

Upon the effective date of this Circular Letter of the Financial Services Authority:

Bank Indonesia Circular Letter Number 10/31/DPbS dated October 7, 2008 regarding Products of Sharia Banks and Sharia Business Units;
Bank Indonesia Circular Letter Number 14/7/DPbS dated February 29, 2012 regarding Gold-Collateralized Qardh Products for Sharia Banks and Sharia Business Units; and
Bank Indonesia Circular Letter Number 14/16/DPbS dated May 31, 2012 regarding Gold Ownership Financing Products for Sharia Banks and Sharia Business Units,
are revoked and declared invalid for BPRS.

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

Issued in Jakarta
On December 22, 2015

EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signed
NELSON TAMPUBOLON

Copy matches the original
Director of Law 1
Legal Department signed
Sudarmaji

APPENDIX I
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 37 /SEOJK.03/2015 REGARDING PRODUCTS AND ACTIVITIES OF SHARIA PEOPLE'S FINANCING BANKS

PLAN FOR ISSUANCE OF NEW PRODUCTS OR IMPLEMENTATION OF NEW ACTIVITIES BPRS :
YEAR :
No. Type and
Name of New
Products and/or
Activities
1) Planned Timing
for Issuance of Products and/or
Implementation of
New Activities
Objective of Issuance of Products and/or
Implementation of
New Activities
Relevance of
Products and/or
Activities to BPRS
Strategy 2)
General
Description of Products and/or
Activities
2) Risks that may
arise from Issuance of Products and/or
New Activities 2)
Planned
Risk
Mitigation
For
BPRS
For
Customers
1) example of fund collection – mudharabah time deposit, fund distribution – musyarakah mutanaqisah financing, other activities – electronic banking via phone banking.
2) more detailed explanations can be attached in a separate sheet.

Issued in Jakarta
On December 22, 2015

EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signed
NELSON TAMPUBOLON

Copy matches the original
Director of Law 1
Legal Department signed
Sudarmaji

APPENDIX II
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 37 /SEOJK.03/2015 REGARDING PRODUCTS AND ACTIVITIES OF SHARIA PEOPLE'S FINANCING BANKS

DEFINITIONS OR GENERAL CHARACTERISTICS OF BPRS PRODUCTS AND ACTIVITIES

FUND COLLECTION
a. Deposits (Wadi’ah)
1) Savings Deposits of customer funds at BPRS that can only be withdrawn according to specific agreed terms, but cannot be withdrawn using checks/trust receipts, and/or other instruments equivalent thereto.
b. Investment (Mudharabah)
1) Investment Savings of customer funds at BPRS that can only be withdrawn according to specific agreed terms, but cannot be withdrawn using checks/trust receipts, and/or other instruments equivalent thereto.
2) Time Deposits Investment of customer funds at BPRS that can only be withdrawn at specific times agreed upon based on contracts between customer depositors and BPRS.
c. Received Loans/Financing
Loans or financing received from banks or third-party non-bank entities originating from within the country in rupiah. d. Other Fund Collection Clearly stated.
FUND DISTRIBUTION
a. Financing based on profit-sharing principles
1) Mudharabah Financing Provision of funds for business cooperation between two parties where the fund provider supplies all funds, while the fund manager acts as the manager, and profits are shared between them according to agreed ratios.
2) Musyarakah Financing Provision of funds for specific business cooperation where each party provides a portion of funds with the provision that profits will be shared according to agreed ratios, while losses are borne according to each party's fund portion.
3) Musyarakah Mutanaqisah (MMQ) Financing Musyarakah financing where the ownership of assets (goods) or capital of one party (partner) decreases due to gradual purchase by the other party.
b. Financing based on leasing principles
1) Ijarah Financing Provision of funds for the transfer of usage rights/benefits of an asset for a specific period with lease payments (ujrah) without following the transfer of ownership of the asset itself.
2) Ijarah Muntahiyah Bittamlik (IMBT) Financing Provision of funds for the transfer of usage rights or benefits of goods or services based on a lease transaction with an option to transfer ownership of goods.
3) Ijarah Multijasa Financing Provision of funds for the transfer of benefits of services for a specific period with lease payments (ujrah).
c. Financing based on
sales principles
1) Murabahah Financing Provision of funds or claims equivalent thereto for transactions buying and selling goods at the principal cost plus margin based on agreements between BPRS and customers obligating customers to settle debts/obligations.
2) Gold Ownership Financing (PKE) Financing for gold ownership.
3) Istishna’ Financing Provision of funds or claims equivalent thereto for transactions buying and selling goods in the form of ordering the manufacture of specific goods with criteria and requirements agreed upon between the orderer/buyer and seller/manufacturer.
4) Salam Financing Provision of funds or claims equivalent thereto for buying and selling ordered goods with delivery of goods at a later time by the seller and settlement by the buyer at the time of the contract agreement according to specific conditions.
d. Financing...

d. Financing based on lending principles
1) Qardh Financing The provision of funds or receivables that can be equated with it based on agreement or consensus between the borrower and the lender, which obligates the borrower to repay the debt after a certain period.
2) Qardh Financing with Gold Collateral
Qardh financing with gold as collateral bound by a rahn (pledge) contract, where the pledged gold is stored and maintained by the Sharia People's Financing Bank (BPRS) for a certain period by paying storage and maintenance costs for the gold as the object of rahn. e. Syndicated Financing Joint financing provision among BPRS, BPRS with Sharia banks, or BPRS with conventional banks to one customer, where the financing amount is too large to be provided by a single BPRS alone. In a syndicated financing agreement, a BPRS can act as an arranger, underwriter, agent, or participant. f. Refinancing Provision of financing facilities for customers who already fully own assets or for customers who have not yet settled previous financing. g. Debt or Financing Transfer Transfer of customer debt from conventional financial institutions to BPRS and/or transfer of customer financing from Sharia financial institutions to BPRS. h. Other Fund Disbursement Quite clear.
3. FUND PLACEMENT Fund placement in the form of current accounts, deposits, Sharia deposit certificates and/or savings at Sharia commercial banks and Sharia business units; deposits and/or savings at BPRS; and current accounts and/or savings at conventional commercial banks for the purpose of fund transfers for BPRS and BPRS customers.
4.1. FOREIGN EXCHANGE TRADING ACTIVITIES
Sale and purchase of Foreign Currency Notes (FCN) and purchase of Traveller’s Cheques (TC).
5. OTHER ACTIVITIES
a. activities as:
1) Laku Pandai organizer
Activities providing Sharia banking services and/or other Sharia financial services conducted not through office networks, but through cooperation with other parties and supported by the use of information technology infrastructure.
2) Laku Pandai agent
Activities where BPRS cooperates with the Laku Pandai organizing bank and acts as the extending hand of the Laku Pandai organizing bank to provide banking services to the public in the context of inclusive finance. b. provision of electronic banking services
1) phone banking Services for banking transactions by contacting the service number at the BPRS.
2) SMS banking Services for banking information or transactions that can be accessed directly via mobile phones using SMS media.
3) mobile banking Services for conducting banking transactions via mobile phones.
4) internet banking Services for conducting banking transactions via the internet for BPRS that are Laku Pandai organizers.
c. mass employee payroll payment services (payroll)
Services for customers to make mass salary payments to employees/staff. d. cooperation activities in limited fund transfers restricted to receiving remittances from abroad Quite clear. e. issuance of ATM cards and/or debit cards Card Payment Instrument Providers (APMK) in the form of Automated Teller Machines (ATM) and/or debit cards. f. activities:
1) issuance of electronic money (electronic money)
Card payment instrument providers meeting the following elements:
a. issued based on the value of money deposited in advance by the holder to the issuer; b. monetary value stored electronically in a medium such as a server or chip;
c. used as a payment instrument to merchants who are not the issuers of such electronic money; and
d. the monetary value deposited by the holder and managed by the issuer is not considered savings as referred to in laws regulating banking.
2) electronic money (electronic money) marketing activities
Activities where BPRS acts as an agent in marketing electronic money (e-money). g. fund transfers for own interests or customer interests through BPRS accounts at Sharia commercial banks or Sharia business units Quite clear. h. Safe Deposit Box (SDB) Service of renting storage boxes for assets or securities in the BPRS vault.
i. cooperation activities with insurance companies to refer Sharia insurance products to customers related to BPRS products
Marketing cooperation activities for Sharia insurance products where BPRS acts only as a referrer or recommender of a Sharia insurance product to customers. BPRS's role in marketing is limited as an intermediary in forwarding information about Sharia insurance products from partner insurance companies to customers or providing access for insurance companies to offer Sharia insurance products to customers. j. activities receiving entrusted funds in the context of bill payment services such as electricity, telephone, water, and tax payments Quite clear. k. other activities Quite clear. Established in Jakarta On December 22, 2015 EXECUTIVE HEAD OF BANKING SUPERVISOR FINANCIAL SERVICES AUTHORITY, sd NELSON TAMPUBOLON Copy matches the original Legal Director 1 Legal Department sd Sudarmaji

APPENDIX III
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 37 /SEOJK.03/2015 CONCERNING PRODUCTS AND ACTIVITIES OF SHARIA PEOPLE'S FINANCING BANKS

PRODUCTS AND ACTIVITIES OF BPRS
No. Product/Activity Remarks

FUND COLLECTION
a. Deposits (Wadi’ah)
1) Savings Without approval
b. Investment (Mudharabah)
1) Savings
2) Deposits
Without approval
Without approval
c. Loans/Financing received Without approval
d. Other fund collection
1) Outside letters a to c
2) Letters a to c but not in accordance with the BPRS Product and Activity Codification.
Approval
FUND DISBURSEMENT
a. Financing based on profit-sharing principles
1) Mudharabah Financing
2) Musyarakah Financing
3) Musyarakah Mutanaqisah (MMQ) Financing
Without Approval
Without Approval
Without Approval b. Financing based on leasing principles
1) Ijarah Financing Without Approval
2) Ijarah Financing...

No. Product/Activity Remarks
2) Ijarah Muntahiyah Bittamlik (IMBT)
3) Ijarah Multijasa Financing
Without Approval
Without Approval
c. Financing based on sales-purchase principles
1) Murabahah Financing
2) Gold Ownership Financing (PKE)
3) Istishna’ Financing
4) Salam Financing
Without Approval
Without Approval
Without Approval
Without Approval d. Financing based on lending principles
1) Qardh Financing
2) Qardh Financing with Gold Collateral
Without Approval
Without Approval e. Syndicated Financing Without Approval f. Refinancing Without approval g. Debt or Financing Transfer Without approval h. Other Fund Disbursement
1) Outside letters a to g
2) Letters a to g but not in accordance with the BPRS Product and Activity Codification.
Approval
3. FUND PLACEMENT Without Approval
4. FOREIGN EXCHANGE TRADING ACTIVITIES Approval
5. OTHER ACTIVITIES...

No. Product/Activity Remarks
5. OTHER ACTIVITIES
a. activities as:
1) Laku Pandai organizer
2) Laku Pandai agent
Approval
Without Approval b. provision of electronic banking services
1) phone banking
2) SMS banking
3) mobile banking
4) internet banking
Approval
c. mass employee payroll payment services (payroll) Without Approval
d. cooperation activities in limited fund transfers restricted to receiving remittances from abroad Approval e. issuance of ATM cards and/or debit cards Approval 1) f. activities:
1) issuance of electronic money (electronic money)
2) electronic money (electronic money) marketing activities
Approval 1)
Without approval g. fund transfers for own interests or customer interests through BPRS accounts at Sharia commercial banks or Sharia business units Without Approval h. Safe...

No. Product/Activity Remarks h. Safe Deposit Box (SDB) Without Approval
i. cooperation activities with insurance companies to refer Sharia insurance products to customers related to BPRS products
Approval j. other activities
1) Outside letters a to i
2) Outside letters a to i but not in accordance with the BPRS Product and Activity Codification.
Approval
Remarks:
1)
: BPRS must obtain implementation permission from Bank Indonesia after obtaining approval from the Financial Services Authority Established in Jakarta On December 22, 2015 EXECUTIVE HEAD OF BANKING SUPERVISOR FINANCIAL SERVICES AUTHORITY, sd NELSON TAMPUBOLON Copy matches the original Legal Director 1 Legal Department Sudarmaji

APPENDIX V
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 37 /SEOJK.03/2015 CONCERNING PRODUCTS AND ACTIVITIES OF SHARIA PEOPLE'S FINANCING BANKS

Appendix V.1
Appendix: ....................
To
Financial Services Authority
Attn. 1)
Subject: Request for Approval of Issuance of New Product/Implementation of New Activity 2) Assalamu’alaikum Wr. Wb. In relation to the above matter, we hereby submit a request for approval of the issuance of a new Product/implementation of a new Activity 2) with the following details:

Type of Product/Activity 2)
: …………………………………………………….
Name of Product/Activity 2)
: …………………………………………………….
Planned issuance of Product/implementation of Activity 2)
: ……………
As consideration materials, we hereby submit supporting documents as required by the attached checklist. If there are questions or other matters related to this request letter, you may contact our employee namely ………via telephone…….or email…….. Thus this request is submitted, thank you for your attention. Wassalamu’alaikum Wr. Wb. BPRS BOARD OF DIRECTORS Copy to: Sharia Banking Department 3)
1) Sharia Banking Department, Regional Office, or local Financial Services Authority Office covering the respective BPRS.
2) Strike out what is not needed.
3) In the event that it is a request for approval of a new Product and the BPRS is outside the working area of the Sharia Banking Department.
CHECKLIST...

CHECKLIST OF DOCUMENTS FOR REQUEST FOR APPROVAL OF NEW PRODUCT/ACTIVITY 1) No. Document Check Remarks

General explanation regarding the new Product/Activity 1).
a. type and name of new Product/Activity 1); b. planned time for issuance of Product/ implementation of new Activity 1);
c. information regarding features or characteristics
of the Product to be issued/Activity to be implemented 1);
Benefits and costs for BPRS.
Benefits and risks for customers.
Standard operating procedures containing
among others definitions; related regulations; characteristics; target market or customers; process flow (flowchart) and implementation procedures according to the process flow; accounting journals; transparency and customer protection policies; and handling of troubled customers (in the case of financing Products).
Planned policies and procedures related to the
implementation of Anti-Money Laundering and
Counter-Financing of Terrorism (APU and PPT) programs.
Results of legal and compliance aspect analysis
of the new Product/Activity 1).
Sharia opinion from the Sharia Supervisory Board (DPS)
regarding the new Product/Activity 1) (attached)
Concept of contract/agreement/application form
Operational readiness including human resources and information technology.
Thus...

Thus this checklist has been compiled correctly and completely to be submitted to the Financial Services Authority in the context of requesting approval for a new Product/Activity 1). (Place), (Date, Month, Year)

BPRS BOARD OF DIRECTORS
1) Strike out what is not needed.
Appendix...

Appendix V.2
SHARIA OPINION OF THE SHARIA SUPERVISORY BOARD (DPS) Name of New Product/Activity 1): ……………………… No. Remarks Opinion

New Product/Activity 1) is based on DSN-MUI fatwa
The new Product/Activity 1) conforms to DSN-MUI fatwa
at least including:
a. the contract used and fulfillment of elements in the contract used; b. transaction object and purpose of use;
c. conformity of bonus/nisbah for
profit/margin/ujrah/fee determination with the contract used, including in the event of a need for review (review) of profit/margin/ujrah ratios (for fund disbursement products); d. determination of administrative fees; and e. determination of prizes, penalties/sanctions and/or compensation, deductions, accelerated repayment, and treatment of collateral, if any.
Standard operating procedures for new Products and/or Activities
related to fulfillment of Sharia Principles.
Results of review of the concept of contract/agreement/application form
for new Products and/or Activities related to fulfillment of Sharia Principles.
Conclusion: ……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………
(Place), (Date, Month, Year)
(Sharia Supervisory Board) (Sharia Supervisory Board)
1) Strike out what is not needed
Appendix...

Appendix V.3
Appendix: ....................
To
Financial Services Authority
Attn.
1)
Subject: Report on Implementation of Issuance of New Product/Implementation of New Activity 2) Assalamu’alaikum Wr. Wb. In relation to the Financial Services Authority approval letter Number ...... dated ..... Regarding ....., we hereby report that the issuance of a new Product/implementation of a new Activity 2) has been carried out as follows:

Type of new product/activity 2) : …….......................................
Name of new product/activity 2) : …….......................................
Date of issuance of Product/implementation of Activity 2)
: ……………
To complete this report, we hereby submit supporting documents explaining the conformity of the newly issued Product/newly implemented Activity 2) with the new Product/Activity 2) approved by the Financial Services Authority. Thus this report is submitted, thank you for your attention. Wassalamu’alaikum Wr. Wb. BPRS BOARD OF DIRECTORS
1) Sharia Banking Department, Regional Office, or local Financial Services Authority Office covering the respective BPRS.
2) Strike out what is not needed.
Appendix...

Appendix V.4
Number: .................... (Place), (Date, Month, Year)
Appendix: ....................
To
Financial Services Authority
Attn. 1)
Subject: Report on Implementation of Issuance of New Product/Implementation of New Activity 2) Assalamu’alaikum Wr. Wb. In relation to the above matter, we hereby report that the issuance of a new Product/implementation of a new Activity 2) has been carried out as follows:

Type of New Product/Activity 2)
: …….......................................
Name of New Product/Activity 2)
: …….......................................
Date of issuance of Product/implementation of Activity 2): ……………
To complete this report, we hereby submit supporting documents as required by the attached checklist.
Thus this report is submitted, thank you for your attention.
Wassalamu’alaikum Wr. Wb.
BPRS BOARD OF DIRECTORS
1) Sharia Banking Department, Regional Office, or local Financial Services Authority Office covering the respective BPRS.
2) Strike out what is not needed.
CHECKLIST...

CHECKLIST OF DOCUMENTS FOR IMPLEMENTATION OF
NEW PRODUCT/ACTIVITY 1) IMPLEMENTATION
No. Document Check Remarks

General summary of the new Product and/or
Activity including at least:
a. type and name of new Product and/or Activity new; b. date of issuance of Product and/or implementation of new Activity;
c. conformity of the newly issued Product
or newly implemented Activity with the BPRS Product and Activity Codification; d. benefits and costs for BPRS; e. benefits and risks for customers; f. target market or customers; g. characteristics of the Product or Activity; h. process flow (flowchart) and implementation procedures according to the process flow of the Product or Activity;
i. accounting journals; and
j. policies for transparency and customer protection and handling of troubled customers (in the case of financing Products).
Standard operating procedures containing
among others definitions; related regulations; characteristics; target market or customers; process flow (flowchart) and implementation procedures according to the process flow; accounting journals; transparency and customer protection policies; and handling of troubled customers (in the case of financing Products); Thus...

Thus this checklist has been compiled correctly and completely to be submitted to the Financial Services Authority in the context of reporting the implementation of the issuance of a new Product/implementation of a new Activity 1). (Place), (Date, Month, Year) BPRS BOARD OF DIRECTORS
1) Strike out what is not needed
Appendix...

Appendix V.5
Appendix: ....................
To
Financial Services Authority
Attn. 1)
Subject: Report on Planned Termination of New Product/Activity 2) Assalamu’alaikum Wr. Wb.
In relation to the above matter, we hereby submit a report on the planned termination of a new Product/Activity 2) as follows:

Type of New Product/Activity 2) : ……..................................................
Name of New Product/Activity 2)
: …….................................................
Planned termination date: ………………………………………………
As consideration materials, we hereby submit supporting documents as required by the attached checklist.
Thus this report is submitted, thank you for your attention.
Wassalamu’alaikum Wr. Wb

BPRS BOARD OF DIRECTORS
1) Sharia Banking Department, Regional Office, or local Financial Services Authority Office covering the respective BPRS.
2) Strike out what is not needed.
CHECKLIST...

CHECKLIST OF DOCUMENTS FOR TERMINATION OF
NEW PRODUCT/ACTIVITY 1)
No. Document Check Remarks

Reasons for termination.
Board of Directors statement regarding
responsibility for the decision to terminate.
Explanation of steps to be taken in the context
of settling or transferring all receivables and obligations to customers and other parties.
Thus this checklist has been compiled correctly and completely to be submitted to the Financial Services Authority in the context of terminating a new Product/Activity 1). (Place), (Date, Month, Year) BPRS BOARD OF DIRECTORS
1) Strike out what is not needed.
Appendix...

Appendix V.6
Appendix: ....................
To
Financial Services Authority
Attn. 1)
Subject: Report on Implementation of Termination of New Product/Activity 2) Assalamu’alaikum Wr. Wb.
In relation to the Financial Services Authority letter Number ...... dated ..... Regarding ..... 2)/In relation to our letter Number ...... dated ..... Regarding
.....
3)4)
, we hereby report that we have carried out the termination of a new Product/Activity 4) as follows:

Type of New Product/Activity 2) : ……...........................................................
Name of New Product/Activity 2) : ……...........................................................
Date of termination of New Product/Activity 2) : ………………………………
To complete this report, we hereby submit supporting documents containing explanations of the steps taken in the context of settling or transferring all obligations to customers and other parties. Thus this report is submitted, thank you for your attention. Wassalamu’alaikum Wr. Wb. BPRS BOARD OF DIRECTORS
1) Sharia Banking Department, Regional Office, or local Financial Services Authority Office covering the respective BPRS.
2) in the event that the Financial Services Authority provides confirmation.
3) in the event that the Financial Services Authority does not provide confirmation.
4) Strike out what is not needed.
Appendix...

Appendix V.7
Appendix: ....................
To
Financial Services Authority
Attn. 1)
Subject: Report on Implementation of Temporary Termination of New Product/Activity 2) Assalamu’alaikum Wr. Wb.
In relation to the Financial Services Authority letter Number ...... dated ..... Regarding ....., we hereby report that we have carried out a temporary termination of a new Product/Activity 2) as follows:

Type of New Product/Activity 2) : ……...........................................................
Name of New Product/Activity 2) : ……...........................................................
Date of temporary termination of New Product/Activity 2)
: ……………..
Thus this report is submitted, thank you for your attention.
Wassalamu’alaikum Wr. Wb.
BPRS BOARD OF DIRECTORS
1) Sharia Banking Department, Regional Office, or local Financial Services Authority Office covering the respective BPRS.
2) Strike out what is not needed.
Appendix...

Appendix V.8
Appendix: ....................
To
Financial Services Authority
Attn. 1)
Subject: Report on Improvement of New Product/Activity 2) Assalamu’alaikum Wr. Wb.
In relation to the Financial Services Authority letter Number ...... dated ..... Regarding .... and our letter Number ...... dated ..... regarding Report on Implementation of Temporary Termination of New Product/Activity 2, we hereby report that we have improved Product ..... /Activity 2) ...... in accordance with the request of the Financial Services Authority as attached. Thus this report is submitted, thank you for your attention. Wassalamu’alaikum Wr. Wb. BPRS BOARD OF DIRECTORS
1) Sharia Banking Department, Regional Office, or local Financial Services Authority Office covering the respective BPRS.
2) Strike out what is not needed.
Appendix...

Appendix V.9
Appendix: ....................
To
Financial Services Authority
Attn. 1)
Subject: Report on Implementation of Re-issuance of Product/Re-implementation of Activity 2) Assalamu’alaikum Wr. Wb.
In relation to the letter from the Financial Services Authority Number ..........
dated ........ Regarding............, we hereby report that re-issuance of a Product/re-implementation of a new Activity 2) has been carried out as follows:

Type of New Product/Activity 2) : …….......................................
Name of New Product/Activity 2) : …….......................................
Date of re-issuance of Product/re-implementation of Activity 2): ..
Thus this report is submitted, thank you for your attention.
Wassalamu’alaikum Wr. Wb.
BPRS BOARD OF DIRECTORS
1) Sharia Banking Department, Regional Office, or local Financial Services Authority Office covering the respective BPRS.
2) Strike out what is not needed.
Appendix...

Appendix V.10
Appendix: ....................
To
Financial Services Authority
Attn. 1)
Subject: Report on Implementation of Permanent Termination of New Product/Activity 2) Assalamu’alaikum Wr. Wb.
In relation to the Financial Services Authority letter Number ...... dated ..... Regarding ....., we hereby report that we have carried out permanent termination of a new Product/Activity 2) as follows:

Type of New Product/Activity 2) : ……...........................................................
Name of New Product/Activity 2) : ……...........................................................
Date of permanent termination of New Product/Activity 2): ………………….....
Thus this report is submitted, thank you for your attention.
Wassalamu’alaikum Wr. Wb.
BPRS BOARD OF DIRECTORS
1) Sharia Banking Department, Regional Office, or local Financial Services Authority Office covering the respective BPRS.
2) Strike out what is not needed.
Appendix...

Appendix V.11
Appendix: ....................
To
Financial Services Authority
Attn. 1)
Subject: Report on Follow-up Plan for Termination of New Product/Activity 2)

Assalamu’alaikum Wr. Wb.
In connection with the letter from the Financial Services Authority Number ....
dated .... Regarding...., we hereby convey the action plan for the permanent cessation of Product ......../Activity ......... 2) which has been implemented
on date ..........
This is our report, we appreciate your attention.
Wassalamu’alaikum Wr. Wb.
BOARD OF DIRECTORS OF BPRS
1) Sharia Banking Department, Regional Office, or local Financial Services Authority Office that covers the respective BPRS.
2) Cross out what is not needed.
Established in Jakarta
On date 22 December 2015
CHIEF EXECUTIVE OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signature
NELSON TAMPUBOLON
Copy matches the original
Legal Director 1
Legal Department signature
Sudarmaji

APPENDIX IV
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 37 /SEOJK.03/2015 CONCERNING PRODUCTS AND ACTIVITIES OF SHARIA PEOPLE'S FINANCING BANKS

CODIFICATION OF PRODUCTS AND ACTIVITIES
OF SHARIA PEOPLE'S FINANCING BANKS

TABLE OF CONTENTS
I. FUND COLLECTION…………………………………………………………… 1
I.1. Deposits………………………………………………………………………. 1
I.1.1. Savings……………………………………………………………….. 1
I.2. Investment……………………………………………………………………....... 4
I.2.1. Savings……………………………………………………………….. 4
I.2.2. Deposits…………………………………………………………………. 9
I.3. Received Loans/Financing…………………………………… 13
II. FUND DISBURSEMENT……………………………………………………………….. 14
II.1. Financing Based on Profit-Sharing Principles…………………………... 14 II.1.1.Mudharabah Financing…………………………………………… 14 II.1.2.Musyarakah Financing…………………………………………… 18
II.1.3.Musyarakah Mutanaqisah (MMQ) Financing...................... 22
II.2. Financing Based on Leasing Principles……………………. 28
II.2.1.Ijarah Financing................................................................ 28
II.2.2.Ijarah Muntahiyah Bittamlik Financing……………………….. 32 II.2.3.Multijasa Financing……………………………………………….. 36 II.3. Financing Based on Sales Principles……………………………. 39
II.3.1.Murabahah Financing....................................................... 39
II.3.2.Gold Ownership Financing (PKE)................................... 43
II.3.3.Istishna’ Financing............................................................ 48
II.3.4.Salam Financing............................................................... 52
II.4. Financing Based on Loan Principles………………… 55
II.4.1.Qardh Financing............................................................... 55
II.4.2.Gold-Collateralized Qardh Financing....................................... 58
II.5. Syndicated Financing ................................................................... 62
II.6. Refinancing……………………………………………………………….. 65
II.7. Debt or Financing Transfer…………………………………...... 70
II.8. Sharia Factoring………………………………………………………. 78
III. PLACEMENT IN OTHER BANKS…………......……………………………….. 81
IV. OTHER ACTIVITIES……………………………………………………………….. 83
IV.1. Branchless financial service agents for inclusive finance
(Laku Pandai) ..................................................................
IV.2. Payroll………………………………………………………………………….. 85 IV.3. Electronic money (e-money) sales agents…....……………………… 87 IV.4. Fund Transfer ………………………………………………………….. 88 IV.5. Safe Deposit Box (SDB)……………………………………………………… 90

I.
I. FUND COLLECTION
I.1.DEPOSITS
I.1.1. SAVINGS
1. Definition Customer funds deposited at a BPRS
whose withdrawal can only be done according to specific terms agreed upon, but cannot be withdrawn using checks, giro drafts, and/or other instruments equivalent to those.
2. Contract Wadi’ah
3. Requirements 3.1. BPRS acts as the recipient of deposited funds
and the customer acts as the depositor.
3.2. BPRS may manage or use the
customer's deposited funds.
3.3. BPRS is not permitted to promise
the provision of remuneration or bonuses to customers.
3.4. BPRS guarantees the return of the
customer's deposited funds.
3.5. BPRS and customers document the agreement
on the opening and use of savings products in the form of a written agreement, using forms, or other forms that can be equated with those.
3.6. BPRS applies product information transparency
and customer protection according to applicable regulations.
3.7. BPRS has policies and procedures for
risk mitigation.
3.8. BPRS has adequate recording and
account administration systems.
3.9. Savings account opening requirements must
consider related regulations:
a. Anti-Money Laundering/Counter
Financing of Terrorism (AML/CFT); b. Product information transparency;
c. Protection of customers in the financial services sector;
d. Deposit insurance by the Deposit Insurance
Corporation (LPS); e. BPRS institutional aspects; and f. Other related regulations.

4. Characteristics 4.1. BPRS may set customer targets, namely
individuals and/or non-individuals.
4.2. BPRS may provide savings books or
account statements.
4.3. BPRS may set specific initial deposits.
4.4. BPRS may set specific minimum balances.
4.5. BPRS may charge account administration fees
consisting of costs directly related to savings account management costs, including costs for printing transaction and account balance reports, account opening costs, and account closure costs.
4.6. BPRS may deduct zakat or infaq from
bonuses received by customers upon customer request in the savings account opening agreement.
4.7. BPRS may provide ATM and/or
e-banking facilities according to BPRS policy and applicable regulations.
4.8. BPRS may issue special savings for
students by meeting the following requirements:
a. BPRS establishes policies including regarding account opening, initial deposits, subsequent deposits, minimum balance, administration fees, bonus provision, dormant account status, as well as procedures for depositing and withdrawing cash from savings. b. Account opening is conducted through collaboration between schools and BPRS (collaboration form adjusted to the policy of each BPRS).
c. One student is only permitted to have
one savings account at 1 (one) BPRS and is not permitted to have a joint account with "and/or" status. d. Parents/guardians may grant power of attorney to the school (designated school official) or other parties for the opening of savings accounts. e. Withdrawals, deposits, and transfers can be served at schools and all Bank channels according to BPRS policy. f. Offline transactions are left to the policy of each BPRS.
4.9. BPRS may provide prizes for promotional
purposes by meeting the following requirements:
a. promotional prizes are not agreed upon, do not lead to hidden riba practices and/or do not become customary (habitual); b. promotional prizes must be in the form of goods and/or services (not in the form of money);
c. in the event that promotional prizes are in the form
of goods, the promotional prizes must be tangible and halal items; and d. promotional prizes are given before the occurrence of the wadi’ah contract.
5. Purpose/
Benefits a. For BPRS 5.a.1. Funding source for BPRS.
5.a.2. One of the income sources from the subsequent activity of utilizing savings funds. b. For Customers 5.b.1. Ease in liquidity management both in terms of depositing, withdrawing, transferring, and flexible transaction payments. 5.b.2. Can obtain remuneration or bonuses.
6. Risk
Identification
BPRS faces potential liquidity risks caused by fluctuations in funds in savings accounts, so BPRS must set aside funds with liquid assets without disturbing BPRS's activities and financial conditions.
7. Related
Regulations
Related regulations include:
7.1. PBI No.7/6/PBI/2005 on Transparency
of Bank Product Information and Use of
Customer Personal Data and SEBI No. 7/25/DPNP along with its amendments.
7.2. PBI No.9/19/PBI/2007 on Implementation
of Sharia Principles in Fund Collection and Disbursement Activities and Bank Sharia Services as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS along with its amendments.
7.3. PBI No.12/20/PBI/2010 on Implementation
of Anti-Money Laundering and Counter
Financing of Terrorism Programs for Rural Banks and Sharia People's Financing Banks and implementation regulations namely SEBI No. 13/14/DKBU along with its amendments.
7.4. POJK No.1/POJK.07/2013 on
Consumer Protection in the Financial Services Sector along with its amendments.
7.5. SEOJK No.12/SEOJK.07/2014 on
Information Disclosure in the Context of
Marketing Products and/or Financial Services along with its amendments.
7.6. SEOJK No.13/SEOJK.07/2014 on
Standard Contracts along with its amendments.
7.7. SEOJK No.14/SEOJK.07/2014 on
Confidentiality and Security of Data and/or
Customer Personal Information along with its amendments.
8. Sharia
Fatwa National Sharia Council Fatwa
8.1. DSN Fatwa No.02/DSN-MUI/IV/2000 on
Savings.
8.2. DSN Fatwa No.86/DSN-MUI/XII/2012 on
Prizes in Fund Collection by Sharia Financial Institutions.
9. Accounting
System/
Recording
Indonesian Sharia Banking Accounting Guidelines (PAPSI) I.2.INVESTMENT I.2.1. SAVINGS
1. Definition Investment of customer funds at a BRS whose withdrawal
can only be done according to specific terms agreed upon, but cannot be withdrawn using checks, giro drafts, and/or other instruments equivalent to those.

2. Contract 2.1. Mudharabah Mutlaqah
2.2. Mudharabah Muqayyadah
3. Requirements 3.1. BPRS acts as the fund manager and
the customer acts as the fund owner.
3.2. In the event that savings use the
mudharabah mutlaqah contract:
a. BPRS is not limited in using customer funds in disbursement activities as long as they do not conflict with Sharia Principles; and b. customers as fund owners bear loss risks in the event that the financed investment object or underlying asset experiences a decline in quality or losses that occur not due to the negligence of BPRS as the fund manager unless BPRS as the fund manager guarantees the entire customer's principal funds.
3.3. In the event that savings use the
mudharabah muqayyadah contract:
a. customers as fund owners provide specific conditions and limitations to BPRS including regarding location, method, and/or investment objects stated clearly in the agreement; and b. customers as fund owners bear loss risks in the event that the financed investment object or underlying asset experiences a decline in quality or losses that occur not due to the negligence of BPRS as the fund manager and/or violate the substance of the agreement.
3.4. BPRS and customers share
profits in the form of an agreed profit-sharing ratio (nisbah) documented in the account opening contract.
3.5. BPRS is not permitted to reduce
the customer's profit-sharing ratio without customer approval.
3.6. BPRS and customers document the agreement
on the opening and use of savings products in the form of a written agreement,

using forms, or other forms that can be equated with those.
3.7. BPRS applies product information transparency
and customer protection according to applicable regulations.
3.8. BPRS has policies and procedures for
risk mitigation.
3.9. BPRS has adequate recording and
account administration systems.
3.10. In the event that savings are time deposits
or planned savings, customer fund withdrawals can only be done according to the agreed time.
3.11. Savings account opening requirements
must consider related regulations:
a. Anti-Money Laundering/Counter
Financing of Terrorism (AML/CFT); b. Product information transparency;
c. Protection of customers in the financial services sector;
d. Deposit insurance by the Deposit Insurance
Corporation (LPS); e. BPRS institutional aspects; and f. Other related regulations.
4. Characteristics 4.1. BPRS may set customer targets, namely
individuals and/or non-individuals.
4.2. BPRS may provide savings books or
account statements.
4.3. BPRS may set specific initial deposits.
4.4. BPRS may set specific minimum balances.
4.5. BPRS may charge account administration fees
consisting of costs directly related to account management costs, including costs for printing transaction reports and account balances, account opening costs, and account closure costs.
4.6. BPRS may deduct zakat or infaq from profit
shares received by customers upon customer request in the savings account opening agreement.
4.7. BPRS may add Sharia insurance coverage features
(only applicable to BPRS that have obtained bancassurance approval).
4.8. BPRS may provide ATM and/or
e-banking facilities according to BPRS policy and applicable regulations.
4.1. BPRS may provide prizes for promotional
purposes by meeting the following requirements:
a. promotional prizes are not agreed upon, do not lead to hidden riba practices and/or do not become customary (habitual); b. promotional prizes must be in the form of goods and/or services (not in the form of money); and
c. in the event that promotional prizes are in the form
of goods, the promotional prizes must be tangible and halal items.
4.2. BPRS may issue special savings for
students by meeting the following requirements:
a. BPRS establishes policies including regarding account opening, initial deposits, subsequent deposits, minimum balance, administration fees, profit share provision, dormant account status, as well as procedures for depositing and withdrawing cash from savings. b. Account opening is conducted through collaboration between schools and BPRS (collaboration form adjusted to the policy of each BPRS).
c. One student is only permitted to have
one savings account at 1 (one) BPRS and is not permitted to have a joint account with "and/or" status. d. Parents/guardians may grant power of attorney to the school (designated school official) or other parties for the opening of savings accounts. e. Withdrawals, deposits, and transfers can be served at schools and all BPRS channels according to BPRS policy. f. Offline transactions are left to the policy of each BPRS.

4.3. Savings can be ordinary savings or
time deposits or planned savings. In the event that savings are time deposits or planned savings:
a. savings have a specific agreed-upon duration; b. savings have an agreed-upon purpose;
c. savings deposits can be made through
autodebit or other agreed-upon media (in the event of autodebit, BPRS notifies the customer if there is an autodebit process failure); d. savings profit shares can increase the savings principal or be transferred to an agreed-upon account; and e. reporting media can be account statements or e-statements.
5. Purpose/
Benefits a. For BPRS 5.a.1. Funding source for BPRS.
5.a.2. One of the income sources from the subsequent activity of utilizing savings funds. b. For Customers 5.b.1. Ease in liquidity management both in terms of depositing, withdrawing, transferring, and flexible transaction payments. 5.b.2. Can obtain profit shares.
6. Risk
Identification
BPRS faces potential liquidity risks caused by fluctuations in funds in savings accounts, so BPRS must set aside funds with liquid assets without disturbing BPRS's activities and financial conditions.
7. Related
Regulations
Related regulations include:
7.1. PBI No.7/6/PBI/2005 on Transparency
of Bank Product Information and Use of
Customer Personal Data and SE BI No. 7/25/DPNP along with its amendments.
7.2. PBI No.9/19/PBI/2007 on Implementation
of Sharia Principles in Fund Collection and Disbursement Activities and Services for Sharia Banks as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS along with its amendments.
7.3. PBI No.12/20/PBI/2010 on Implementation
of Anti-Money Laundering and Counter
Financing of Terrorism Programs for Rural Banks and Sharia People's Financing Banks and implementation regulations namely SEBI No. 13/14/DKBU along with its amendments.
7.4. POJK No.1/POJK.07/2013 on
Consumer Protection in the Financial Services Sector along with its amendments.
7.5. SEOJK No.12/SEOJK.07/2014 on
Information Disclosure in the Context of
Marketing Products and/or Financial Services along with its amendments.
7.6. SEOJK No.13/SEOJK.07/2014 on
Standard Contracts along with its amendments.
7.7. SEOJK No.14/SEOJK.07/2014 on
Confidentiality and Security of Data and/or
Customer Personal Information along with its amendments.
8. Sharia
Fatwa National Sharia Council Fatwa
8.1. DSN Fatwa No.02/DSN-MUI/IV/2000 on
Savings.
8.2. DSN Fatwa No.86/DSN-MUI/XII/2012 on
Prizes in Fund Collection by Sharia Financial Institutions.
9. Accounting
System/
Recording
9.1. PSAK No.105 on Mudharabah Accounting.
9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).
I.2.2. DEPOSITS

Definition Investment of customer funds at a BPRS
whose withdrawal can only be done at a specific time agreed upon based on a contract between the depositing customer and BPRS.
Contract 2.1. Mudharabah Mutlaqah
2.2. Mudharabah Muqayyadah
Requirements 3.1. BPRS acts as the fund manager
and the customer acts as the fund owner.
3.2. In the event that deposits use the
mudharabah mutlaqah contract:
a. BPRS is not limited in using customer funds in disbursement activities as long as they do not conflict with Sharia Principles; and b. customers as fund owners bear loss risks in the event that the financed investment object or underlying asset experiences a decline in quality or losses that occur not due to the negligence of BPRS as the fund manager unless BPRS as the fund manager guarantees the entire customer's principal funds.
3.3. In the event that deposits use the
mudharabah muqayyadah contract:
a. customers as fund owners provide specific conditions and limitations to BPRS including regarding location, method, and/or investment objects stated clearly in the agreement; and b. customers as fund owners bear loss risks in the event that the financed investment object or underlying asset experiences a decline in quality or losses that occur not due to the negligence of BPRS as the fund manager and/or violate the substance of the agreement.
3.4. BPRS and customers share
profits in the form of an agreed profit-sharing ratio (nisbah) documented in the account opening contract.
3.5. BPRS is not permitted to reduce
the customer's profit-sharing ratio without customer approval.
3.6. BPRS and customers document
the agreement on the opening and use of deposit products in the form of a written agreement, using

forms, or other forms that can be equated with those.
3.7. BPRS applies product information transparency
and customer protection according to applicable regulations.
3.8. BPRS has policies and procedures for
risk mitigation.
3.9. BPRS has adequate recording and
account administration systems.
3.10. Deposit account opening requirements
must consider related regulations:
a. Anti-Money Laundering/Counter
Financing of Terrorism (AML/CFT); b. Product information transparency;
c. Protection of customers in the financial services sector;
d. Deposit insurance by the Deposit Insurance
Corporation (LPS); e. BPRS institutional aspects; and f. Other related regulations.
4. Characteristics 4.1. BPRS may set customer targets,
namely individuals and/or non- individuals.
4.2. BPRS may set specific durations.
4.3. BPRS may set specific nominal amounts.
4.4. BPRS may charge account administration fees
consisting of costs directly related to account management costs, including costs for account opening and account closure costs.
4.5. BPRS may deduct zakat or infaq from
profit shares received by customers upon customer request in the deposit account opening agreement.
4.6. Matured deposits can be automatically renewed (automatic roll over)
according to the agreement.
4.7. Deposit profit shares can increase
the deposit principal or be transferred to an account upon customer request.
4.8. Deposits can be ordinary deposits or
deposit on call:
a. In the event of ordinary deposits,
BPRS may impose penalties if customers withdraw funds before maturity; b. In the event of deposit on call:
1) Customers must inform
BPRS in advance if they will withdraw deposit on call funds.
2) Maximum duration is 30 (thirty) days.
4.9. BPRS may provide prizes for
promotional purposes by meeting the following requirements:
a. promotional prizes are not agreed upon, not leading to hidden riba practices and/or not becoming customary (habitual); b. promotional prizes must be in the form of goods and/or services (not in the form of money); and
c. in the event that promotional prizes are in
the form of goods, the promotional prizes must be tangible and halal items.
5. Purpose/ Benefits
a. For BPRS 5.a.1. Funding source for BPRS.
5.a.2. One of the income sources from subsequent activities utilizing deposit funds. b. For Customers Can obtain profit shares.
6. Risk Identification 6.1. BPRS faces potential liquidity risks
caused by matured deposits, so BPRS must meet obligations for matured deposits with liquid assets without disturbing BPRS's activities and financial conditions.
6.2. BPRS faces potential return risks
caused by changes in the return rates paid by BPRS to deposit-owning customers, thereby affecting the behavior of deposit-owning customers.
7. Related Regulations Related regulations include:
7.1. PBI No.7/6/PBI/2005 on
Transparency of Bank Product Information and
Use of Customer Personal Data and
SEBI No.7/25/DPNP along with its amendments.
7.2. PBI No.9/19/PBI/2007 on
Implementation of Sharia Principles in
Fund Collection and Disbursement Activities and Services for Sharia Banks as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS along with its amendments.
7.3. PBI No.12/20/PBI/2010 on
Implementation of Anti-Money Laundering and Counter Financing of Terrorism Programs for Rural Banks and Sharia People's Financing Banks and implementation regulations namely SEBI No. 13/14/DKBU along with its amendments.
7.4. POJK No.1/POJK.07/2013 on
Consumer Protection in the Financial Services Sector along with its amendments.
7.5. SEOJK No.12/SEOJK.07/2014 on
Information Disclosure in the Context of
Marketing Products and/or Financial Services along with its amendments.
7.6. SEOJK No.13/SEOJK.07/2014 on
Standard Contracts along with its amendments.
7.7. SEOJK No.14/SEOJK.07/2014 on
Confidentiality and Security of Data and/or Customer Personal Information along with its amendments.
8. Sharia Fatwa National Sharia Council Fatwa

8.1. Fatwa DSN No.03/DSN-MUI/IV/2000
Regarding Deposits.
8.2. Fatwa DSN No.02/DSN-MUI/IV/2000
Regarding Savings.
9. Accounting System/
Recording
9.1. PSAK No.105 Regarding Mudharabah Accounting.
9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).
I.3. RECEIVED LOANS/FINANCING
1. Definition of loans or financing received from banks or third parties that are not banks.
2. Contracts
2.1. Musyarakah
2.2. Mudhabarah
2.3. Qardh
3. Requirements 3.1. BPRS must disclose details of received loans/financing regarding:
a. Type (source of funds) of received loans; b. Term, remuneration (if any), and maturity of received loans or financing;
c. Associated agreements;
d. Value of BPRS assets pledged as collateral; and e. Related party relationships.
3.2. Received loans/financing are recognized at nominal value upon signing the agreement or when an agreement is reached between the receiving bank and the lending/financing bank.
4. Characteristics BPRS may provide profit-sharing on received loans/financing.
5. Purpose/ Benefits
a. For BPRS It serves as an instrument for liquidity control. b. For Customers They can obtain profit-sharing.
6. Risk Identification BPRS faces potential liquidity risk when received loans/financing mature if there is a large maturity gap between liquid assets and liquid liabilities.
3. Requirements...

occurs a large maturity gap between liquid assets and liquid liabilities.
7. Related Provisions -
8. Sharia Fatwa Fatwa of the National Sharia Council (DSN)
8.1. Fatwa DSN No.07/DSN-MUI/IV/2000
Regarding Mudharabah Financing (Qiradh).
8.2. Fatwa DSN No.08/DSN-MUI/IV/2000
Regarding Musyarakah Financing.
8.3. Fatwa DSN No.19/DSN-MUI/IV/2001
Regarding Al-Qardh.
9. Accounting System/
Recording
Indonesian Sharia Banking Accounting Guidelines (PAPSI).
II. FUND DISBURSEMENT
II.1. FINANCING BASED ON PROFIT-SHARING PRINCIPLES II.1.1. MUDHARABAH FINANCING

Definition Provision of funds for business cooperation between two parties where the fund provider supplies all funds, while the fund manager acts as the manager, and profits are shared between them according to an agreed ratio.
Contracts 2.1. Mudharabah Mutlaqah
2.2. Mudharabah Muqayyadah
Requirements 3.1. BPRS acts as the fund provider and the customer acts as the fund manager.
3.2. In the event financing uses:
a. mudharabah mutlaqah contract, then BPRS as the fund provider gives freedom to the customer as the fund manager in managing funds. b. mudharabah muqayyadah contract, then BPRS as the fund provider gives specific restrictions to the customer as the fund manager among others regarding location, method, and/or investment object.
3.3. Customer's business activities must not contradict Sharia Principles.
3.4. The term for fund repayment and business profit distribution from fund management is determined based on agreement between BPRS and customer.
3.5. Business profit distribution from fund management is expressed in an agreed ratio (nisbah).
3.6. Business profit distribution is conducted based on customer's business result reports.
3.7. The agreed profit-sharing ratio cannot be changed throughout the financing term, except based on agreement between the parties.
3.8. BPRS and customer bear losses proportionally according to each party's capital share.
In the event the customer commits negligence, fraud, and/or intentional errors resulting in business losses, then:
a. BPRS is not responsible for the losses incurred; and b. the customer is obligated to repay the remaining financing provided by BPRS and the profit-sharing that has become BPRS's right but has not yet been paid.
3.9. BPRS conducts analysis on customer financing applications which among others include personal aspects such as character analysis (character) and/or business aspects including business capacity analysis (capacity), financial (capital), and/or business prospects (condition).
3.10.BPRS and customer document the financing agreement in a written contract.
3.11.BPRS applies product information transparency and customer protection in accordance with applicable regulations. 3.12.BPRS has policies and procedures for risk mitigation.

3.13.BPRS has adequate recording and account administration systems.
4. Characteristics 4.1. BPRS may set financing segments, namely Small Micro Enterprises (SMEs), non-SMEs, individuals, or business entities/legal entities.
4.2. BPRS may provide financing used for working capital and/or investment purposes.
4.3. BPRS may set specific limits.
4.4. BPRS may set specific terms.
4.5. BPRS may request collateral from customers at the time of financing disbursement.
4.6. BPRS may charge administrative fees in accordance with agreements, the amount of which corresponds to the actual costs directly related to the financing.
4.7. Financing profit-sharing ratios may be determined in accordance with agreements or tiered. The determination method is agreed upon at the beginning of the contract and may be changed in accordance with agreements.
4.8. Financing disbursement by BPRS may be conducted at once or in stages.
4.9. Financing repayment by customers may be conducted in two ways, namely:
4.10.periodically in accordance with the projection of customer's business cash inflows; or 4.11.at once at the end of financing (for financing with terms up to 1 (one) year). 4.12.Financing profit-sharing methods refer to the Indonesian Sharia Banking Accounting Guidelines (PAPSI).
5. Purpose/ Benefits
a. For BPRS 5.a.1. As one form of fund disbursement.
5.a.2. Obtaining income in the form of profit-sharing in accordance with the business income managed by customers. b. For Customers Meeting working capital needs.
6. Risk Identification 6.1. BPRS faces potential credit risk caused by customer default or default.
6.2. BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human errors, system failures, and/or external events affecting BPRS operations.
7. Related Provisions Related provisions include among others:
7.1. PBI No.7/6/PBI/2005 Regarding Transparency of Bank Product Information and Use of Customer Personal Data and implementation regulations namely SEBI No.7/25/DPNP along with its amendments.
7.2. PBI No.9/19/PBI/2007 Regarding the Implementation of Sharia Principles in Fund Collection and Disbursement Activities and Banking Services of Sharia Banks as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS along with its amendments.
7.3. PBI No.12/20/PBI/2010 Regarding the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Credit Banks and Sharia Micro Financing Banks and implementation regulations namely SEBI No. 13/14/DKBU along with its amendments.
7.4. PBI No.13/14/PBI/2011 Regarding Asset Quality Assessment of Sharia Micro Financing Banks and SEBI No. 13/11/DPBS along with its amendments.
7.5. POJK No.1/POJK.07/2013 Regarding Consumer Protection in the Financial Services Sector along with its amendments.
7.6. SEOJK No.12/SEOJK.07/2014 Regarding Information Disclosure in the Context of Marketing Financial Products and/or Services along with its amendments.
7.7. SEOJK No.13/SEOJK.07/2014 Regarding Standard Agreements along with its amendments.
7.8. SEOJK No.14/SEOJK.07/2014 Regarding Confidentiality and Security of Customer Data and/or Personal Information along with its amendments.
8. Sharia Fatwa Fatwa of the National Sharia Council (DSN)
8.1. Fatwa DSN No.07/DSN-MUI/IV/2000
Regarding Mudharabah Financing (Qiradh).
8.2. Fatwa DSN No.43/DSN-MUI/VIII/2004
Regarding Compensation (Ta’widh).
9. Accounting System/
Recording
9.1. PSAK No.106 Regarding Musyarakah Accounting.
9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).
II.1.2. MUSYARAKAH FINANCING

Definition Provision of funds for specific business cooperation where each party provides a fund share with the provision that profits will be shared according to an agreed ratio, while losses are borne according to each party's fund share.
Contracts Musyarakah
Requirements 3.1. BPRS and customers each act as business partners by jointly providing funds to finance a specific business activity.
3.2. Customer's business activities must not contradict Sharia Principles.
3.3. Financing term, fund repayment, and business profit distribution are determined based on agreement between BPRS and customer.
3.4. Business profit distribution from fund management is expressed in an agreed ratio (nisbah).
3.5. Business profit distribution is conducted based on customer's business result reports.
3.6. The agreed profit-sharing ratio cannot be changed throughout the financing term, except based on agreement between the parties.
3.7. BPRS and customer bear losses proportionally according to each party's capital. In the event the customer commits negligence, fraud, and/or intentional errors resulting in business losses, then:
a. BPRS is not responsible for the losses incurred; and b. the customer is obligated to repay the remaining financing provided by BPRS and the profit-sharing that has become BPRS's right but has not yet been paid.
3.8. Customers act as business managers and BPRS as business partners may participate in business management in accordance with agreed duties and authorities, such as conducting reviews and/or requesting business result reports made by customers based on supporting evidence that can be accounted for.
3.9. BPRS conducts analysis on customer financing applications which among others include personal aspects such as character analysis (character) and/or business aspects including business capacity analysis (capacity), financial (capital), and/or business prospects (condition).
3.10. BPRS and customer document the financing agreement in a written contract.
3.11. BPRS applies product information transparency and customer protection in accordance with applicable regulations.
3.12. BPRS has policies and procedures for risk mitigation.

3.13. BPRS has adequate recording and account administration systems.
3.14. BPRS or customers may propose that if profits exceed a certain amount, the excess or percentage may be given to one party in accordance with agreements.
4. Characteristics 4.1. BPRS may set financing segments, namely Small Micro Enterprises (SMEs), non-SMEs, individuals, or business entities/legal entities.
4.2. BPRS may provide financing for working capital and/or investment purposes.
4.3. BPRS may set specific limits.
4.4. BPRS may set specific terms.
4.5. BPRS may request collateral from customers at the time of financing disbursement.
4.6. BPRS may charge administrative fees in accordance with agreements, the amount of which corresponds to the actual costs directly related to the financing.
4.7. Profit-sharing ratios may be set proportionally and in accordance with agreements and tiered. The determination method is agreed upon at the beginning of the contract and may be changed.
4.8. Financing disbursement may be conducted at once or in stages.
4.9. Financing repayment may be conducted in two ways, namely:
a. periodically in accordance with the projection of customer's business cash inflows; or b. at once at the end of financing (for financing with terms up to 1 (one) year). 4.10.BPRS or customers may propose that if profits exceed a certain amount, the excess or percentage may be given to one party in accordance with agreements as long as it does not harm the fund-owning customer.

4.11.Financing profit-sharing methods refer to the Indonesian Sharia Banking Accounting Guidelines (PAPSI).
5. Purpose/ Benefits
a. For BPRS 5.a.1. As one form of fund disbursement.
5.a.2. Obtaining income in the form of profit-sharing in accordance with the business income managed by customers. b. For Customers Meeting working capital needs.
6. Risk Identification 6.1. BPRS faces potential credit risk caused by customer default or default.
6.2. BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human errors, system failures, and/or external events affecting BPRS operations.
7. Related Provisions Related provisions include among others:
7.1. PBI No.7/6/PBI/2005 Regarding Transparency of Bank Product Information and Use of Customer Personal Data and implementation regulations namely SEBI No.7/25/DPNP along with its amendments.
7.2. PBI No.9/19/PBI/2007 Regarding the Implementation of Sharia Principles in Fund Collection and Disbursement Activities and Banking Services of Sharia Banks as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS along with its amendments.
7.3. PBI No.12/20/PBI/2010 Regarding the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Credit Banks and Sharia Micro Financing Banks and implementation regulations namely SEBI No. 13/14/DKBU along with its amendments.
7.4. PBI No.13/14/PBI/2011 Regarding Asset Quality Assessment of Sharia Micro Financing Banks and SEBI No.13/11/DPBS along with its amendments.
7.5. POJK No.1/POJK.07/2013 Regarding Consumer Protection in the Financial Services Sector along with its amendments.
7.6. SEOJK No.12/SEOJK.07/2014 Regarding Information Disclosure in the Context of Marketing Financial Products and/or Services along with its amendments.
7.7. SEOJK No.13/SEOJK.07/2014 Regarding Standard Agreements along with its amendments.
7.8. SEOJK No.14/SEOJK.07/2014 Regarding Confidentiality and Security of Customer Data and/or Personal Information along with its amendments.
8. Sharia Fatwa Fatwa of the National Sharia Council (DSN)
8.1. Fatwa DSN No.08/DSN-MUI/IV/2000
Regarding Musyarakah Financing.
8.2. Fatwa DSN No.43/DSN-MUI/VIII/2004
Regarding Compensation (Ta’widh).
9. Accounting System/
Recording
9.1. PSAK No.106 Regarding Musyarakah Accounting.
9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).
II.1.3. MUSYARAKAH MUTANAQISAH (MMQ) FINANCING

Definition Musyarakah financing where the ownership of assets (goods) or capital of one party (syarik) decreases due to phased purchase by the other party.
Contracts Musyarakah and Bai’
Requirements 3.1 Meeting Musyarakah financing requirements include among others:
a. BPRS and customers provide capital contributions based on agreements; b. Profits are shared according to an agreed ratio; and
c. Losses are borne according to capital proportions.
3.2 Business capital from all parties (BPRS and customers) is expressed in the form of ownership shares (hishshah).
3.3 Business capital expressed in the form of ownership shares (hishshah) must not decrease during the effective term of the contract.
3.4 BPRS promises to sell its entire ownership share (hishshah) in stages, and customers are obligated to purchase it.
3.5 BPRS transfers its entire ownership share (hishshah) to customers after the sale is fully settled.
3.6 Profits obtained from renting out Musyarakah Mutanaqisah (MMQ) assets are shared according to the ratio agreed upon in the contract, while losses are shared based on ownership shares (hishshah). In the event of customer default, the customer returns the Musyarakah Mutanaqisah (MMQ) assets that are the object of the partnership to return the remaining BPRS ownership share.
3.7 Financing term is determined based on agreement between BPRS and customer.
3.8 BPRS conducts analysis on customer financing applications which among others include personal aspects such as character analysis (character) and/or business aspects including business capacity analysis (capacity), financial (capital), and/or business prospects (condition).
3.9 BPRS and customer document the financing agreement in a written contract or other forms that can be equated to it.
3.10 BPRS applies product information transparency and customer protection in accordance with applicable regulations.
3.11 BPRS has policies and procedures for risk mitigation.
3.12 BPRS has adequate recording and account administration systems.
Characteristics 4.1. BPRS may set financing segments, namely Small Micro Enterprises (SMEs), non-SMEs, individuals, or business entities/legal entities.
4.2. BPRS may provide financing used for investment and/or consumption purposes.
4.3. BPRS may set specific limits.
4.4. BPRS may set specific terms.
4.5. BPRS may request collateral from customers at the time of financing disbursement.
4.6. BPRS may charge administrative fees in accordance with agreements, the amount of which corresponds to the actual costs directly related to the financing.
4.7. Profit-sharing ratios may be set in a tiered manner, with different amounts based on agreements at the beginning of the contract.
4.8. Musyarakah Mutanaqisah (MMQ) assets may be rented to customers or other parties. In the event Musyarakah Mutanaqisah (MMQ) assets are rented to partnership customers, the rental payments recorded at BPRS can serve as evidence of business income.
4.9. BPRS may conduct ujrah reviews of Musyarakah Mutanaqisah (MMQ) asset rentals if they meet the following conditions:
a. there is a change in contract period; b. there is a very strong indication that failure to conduct a review will result in losses for one party;
c. it is agreed upon by both parties (BPRS and customers or other renting parties).
4.10.Profit-sharing methods refer to the Indonesian Sharia Banking Accounting Guidelines (PAPSI).
4.11.Musyarakah Mutanaqisah (MMQ) assets may include:
a. tangible assets that are available or ready for use (ready stock); and/or b. intangible assets or made-to-order (inden). In the event Musyarakah Mutanaqisah (MMQ) assets are intangible or made-to-order, they must meet the following requirements:
a. using Musyarakah Mutanaqisah (MMQ) and ijarah maushufah fi al-dzimmah contracts. b. in the event financing is intended for property ownership, it must also meet the following:
1) meeting requirements as regulated in provisions regarding loan to value ratio or financing to value ratio for property loans or financing and down payments for motor vehicle loans or financing, including among others:
a) financing is first-ranking property financing; b) there is a cooperation agreement between BPRS and developers containing at least the developer's commitment to complete the property as agreed with the customer; c) there is collateral provided by the developer to BPRS originating from the developer themselves or other parties that can be used to fulfill the developer's obligations if the property cannot be completed and/or cannot be handed over as agreed; and d) property financing disbursement can only be conducted in stages in accordance with the development progress of the financed property.
2) cooperation agreements between BPRS and developers contain clauses regarding clarity of the financed object related to:
a) quantity and quality; b) criteria and specifications; and c) construction term and handover time.
3) Musyarakah Mutanaqisah (MMQ) financing contracts contain clauses regulating the resolution of issues in the event of developer default.
4) BPRS must have policies and criteria for developers who can cooperate with BPRS.
5) BPRS must ensure that developers have the ability to realize Musyarakah Mutanaqisah (MMQ) assets, which can be indicated by parameters including among others:
a) the land is available, certified, and free from disputes; and b) the developer has obtained building construction permits in accordance with applicable laws and regulations.
6) Income recognition while Musyarakah Mutanaqisah (MMQ) assets are still made-to-order (inden) refers to the Indonesian Sharia Banking Accounting Guidelines (PAPSI).
c. Profit-sharing ratios (profit-sharing) are determined based on agreements and may follow changes in capital ownership proportions.
d. Payment of ujrah from Musyarakah Mutanaqisah (MMQ) asset rentals may be conducted in cash, deferred, or staged in accordance with agreements.
Purpose/ Benefits
a. For BPRS 5.a.1. As one form of fund disbursement.
5.a.2. Obtaining income in the form of profit-sharing in accordance with rental income from goods. b. For Customers Meeting working capital needs or to own specific assets.
Risk Identification 6.1. BPRS faces potential credit risk caused by customer default or default.
6.2. BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human errors, system failures, and/or external events affecting BPRS operations.
Related Provisions Related provisions include among others:
7.1. PBI No.7/6/PBI/2005 Regarding Transparency of Bank Product Information and Use of Customer Personal Data and implementation regulations namely SEBI No.7/25/DPNP along with its amendments.
7.2. PBI No.9/19/PBI/2007 Regarding the Implementation of Sharia Principles in Fund Collection and Disbursement Activities and Banking Services of Sharia Banks as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS along with its amendments.
7.3. PBI No. 12/20/PBI/2010 Regarding the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Credit Banks and Sharia Micro Financing Banks and implementation regulations namely SEBI No. 13/14/DKBU along with its amendments.
7.4. PBI No.13/14/PBI/2011 Regarding Asset Quality Assessment of Sharia Micro Financing Banks and SEBI No. 13/11/DPBS along with its amendments.
7.5. POJK No.1/POJK.07/2013 Regarding Consumer Protection in the Financial Services Sector along with its amendments.
7.6. SEOJK No.12/SEOJK.07/2014 Regarding Information Disclosure in the Context of Marketing Financial Products and/or Services along with its amendments.
7.7. SEOJK No.13/SEOJK.07/2014 Regarding Standard Agreements along with its amendments.
7.8. SEOJK No.14/SEOJK.07/2014 Regarding Confidentiality and Security of Customer Data and/or Personal Information along with its amendments.
Sharia Fatwa Fatwa of the National Sharia Council (DSN)
8.1. Fatwa DSN No.08/DSN-MUI/IV/2000
Regarding Musyarakah Financing.
8.2. Fatwa DSN No.09/DSN-MUI/IV/2000
Regarding Ijarah Financing.
8.3. Fatwa DSN No.43/DSN-MUI/VIII/2004
Regarding Compensation (Ta’widh).
8.4. Fatwa DSN No.56/DSN-MUI/V/2007
Regarding Ujrah Review Provisions at Sharia Financial Institutions.
8.5. Fatwa DSN No.73/DSN-MUI/XI/2008
Regarding Musyarakah Mutanaqisah.
8.6. Fatwa DSN No.89/DSN-MUI/XII/2013
Regarding Sharia Refinancing Financing.
Accounting/Recording System
9.1. PSAK No.106 on Musyarakah Accounting.
9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).

II.2. FINANCING BASED ON LEASING PRINCIPLES

II.2.1. IJARAH FINANCING

Definition
Provision of funds to transfer the right to use/benefit from an asset for a specific period with rental payments (ujrah) without transferring ownership of the asset itself.
Ijarah Contract
Requirements
3.1. The BPRS acts as the owner and/or party having control over the leased goods, whether tangible or services, leasing the specified goods to the customer as agreed.
3.2. The leased goods must be valuated and specifically identified, clearly stated including the rental amount and duration.
3.3. Rental payments cannot be made in the form of receivables or debt forgiveness.
3.4. The BPRS may require the customer to be responsible for damage to the leased goods resulting from contract violation or customer negligence.
3.5. The BPRS conducts analysis of the customer's financing application, including personal aspects such as character analysis (character) and/or business aspects including business capacity analysis (capacity), financial (capital), and/or business prospects (condition).
3.6. The BPRS and customer document the financing agreement in a written contract or other form equivalent to it.
3.7. The BPRS applies product information transparency and customer protection in accordance with applicable regulations.
3.8. The BPRS has policies and procedures for risk mitigation.
3.9. The BPRS has adequate recording and account administration systems.
Characteristics
4.1. The BPRS may provide financing for working capital, investment, and/or consumption purposes.
4.2. The BPRS may set a specific duration.
4.3. The BPRS may charge administrative fees in accordance with the agreement, based on the actual costs directly related to the financing.
4.4. The BPRS may review ujrah if the following conditions are met:
a. a change in the contract period occurs; b. there is a very strong indication that failure to review will result in losses for one party;
c. agreed upon by both parties (BPRS and customer).
4.5. The leased goods are movable or immovable assets that can be utilized.
4.6. The BPRS may require the customer to maintain the integrity of the leased goods and bear maintenance costs as agreed, where material and structural maintenance cost details must be included in the contract.
4.7. Rental payments can be made in installments or lump sum as agreed.
Objectives/Benefits
a. For BPRS
5.a.1. As one form of fund disbursement.
5.a.2. Obtaining income in the form of compensation/ujrah. b. For Customers 5.b.1. Obtaining usage rights over needed goods. 5.b.2. As a source of financing and Sharia banking services to obtain usage rights over goods.
Risk Identification
6.1. The BPRS faces potential credit risk caused by customer default or breach of contract.
6.2. The BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human error, system failures, and/or external events affecting BPRS operations.
Related Regulations
Related regulations include:
7.1. PBI No.7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data, and implementation regulations namely SEBI No.7/25/DPNP and its amendments.
7.2. PBI No.9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Collection and Disbursement Activities and Banking Services, as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS and its amendments.
7.3. PBI No. 12/20/PBI/2010 on the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Credit Banks and Sharia Microfinance Banks, and implementation regulations namely SEBI No. 13/14/DKBU and its amendments.
7.4. PBI No.13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Microfinance Banks and SEBI No. 13/11/DPBS and its amendments.
7.5. POJK No.1/POJK.07/2013 on Consumer Protection in the Financial Services Sector and its amendments.
7.6. SEOJK No.12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Products and/or Financial Services and its amendments.
7.7. SEOJK No.13/SEOJK.07/2014 on Standard Contracts and its amendments.
7.8. SEOJK No.14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information and its amendments.
Sharia Fatwas
DSN Fatwa
8.1. Fatwa DSN No.09/DSN-MUI/IV/2000 on Ijarah Financing.
8.2. Fatwa DSN No.43/DSN-MUI/VIII/2004 on Compensation (Ta’widh).
8.3. Fatwa DSN No.56/DSN-MUI/V/2007 on Ujrah Review Regulations for Sharia Financial Institutions.
Accounting/Recording System
9.1. PSAK No.107 on Ijarah Accounting.
9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).

II.2.2. IJARAH MUNTAKHIYAH BITTAMLIK (IMBT) FINANCING

Definition
Provision of funds to transfer the right to use or benefit from goods or services based on a lease transaction with an option to transfer ownership of the goods.
Ijarah Muntahiyah Bittamlik (IMBT) Contract
Requirements
3.1. The BPRS as the fund provider in ijarah activities with customers also acts as the promise giver (wa’ad), including providing an option to transfer ownership of the leased goods to the customer as agreed.
3.2. The transfer of ownership of an asset from the BPRS to the customer can be done if the leasing activity has ended or been terminated, and the ijarah asset has been handed over to the customer by creating a separate contract.
3.3. The leased goods must be valuated and specifically identified, clearly stated including the rental amount and duration.
3.4. Rental payments cannot be made in the form of receivables or debt forgiveness.
3.5. The leased goods must be tangible and already available or ready for use (ready stock).
3.6. Depreciation methods, useful life, and residual value refer to applicable accounting standards and the Indonesian Sharia Banking Accounting Guidelines (PAPSI).
3.7. The BPRS conducts analysis of the customer's financing application, including personal aspects such as character analysis (character) and/or business aspects including business capacity analysis (capacity), financial (capital), and/or business prospects (condition).
3.8. The BPRS and customer document the financing agreement in a written contract or other form equivalent to it.
3.9. The BPRS applies product information transparency and customer protection in accordance with applicable regulations.
3.10. The BPRS has policies and procedures for risk mitigation.
3.11. The BPRS has adequate recording and account administration systems.
Characteristics
4.1. The BPRS may provide financing for working capital, investment, and/or consumption purposes.
4.2. The BPRS may set a specific duration for financing.
4.3. The BPRS may charge administrative fees in accordance with the agreement, based on the actual costs directly related to the financing.
4.4. The BPRS may require the customer to be responsible for damage to the leased goods resulting from contract violation or customer negligence.
4.5. The BPRS may set IMBT objects as movable or immovable assets that can be utilized for lease, including property, motor vehicles, or other assets.
4.6. The BPRS may review ujrah if the following conditions are met:
a. a change in the contract period occurs; b. there is a very strong indication that failure to review will result in losses for one party;
c. agreed upon by both parties (BPRS and customer).
4.7. The BPRS may require the customer to maintain the integrity of the leased goods and bear maintenance costs as agreed.
4.8. The BPRS and customer may agree on rental payment methods in installments or lump sum.
Objectives/Benefits
a. For BPRS
5.a.1. As one form of fund disbursement.
5.a.2. Obtaining income in the form of ujrah. b. For Customers 5.b.1. Obtaining usage rights over needed goods.
5.b.2. As a source of financing and Sharia banking services to obtain usage rights over goods and/or obtain the opportunity to acquire ownership of goods.
Risk Identification
6.1. The BPRS faces potential credit risk caused by customer default or breach of contract.
6.2. The BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human error, system failures, and/or external events affecting BPRS operations.
Related Regulations
Related regulations include:
7.1. PBI No.7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data, and implementation regulations namely SEBI No.7/25/DPNP and its amendments.
7.2. PBI No.9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Collection and Disbursement Activities and Banking Services, as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS and its amendments.
7.3. PBI No.12/20/PBI/2010 on the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Credit Banks and Sharia Microfinance Banks, and implementation regulations namely SEBI No. 13/14/DKBU and its amendments.
7.4. PBI No.13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Microfinance Banks and SEBI No. 13/11/DPBS and its amendments.
7.5. POJK No.1/POJK.07/2013 on Consumer Protection in the Financial Services Sector and its amendments.
7.6. SEOJK No.12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Products and/or Financial Services and its amendments.
7.7. SEOJK No.13/SEOJK.07/2014 on Standard Contracts and its amendments.
7.8. SEOJK No.14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information and its amendments.
Sharia Fatwas
DSN Fatwa
8.1. Fatwa DSN No.09/DSN-MUI/IV/2000 on Ijarah Financing.
8.2. Fatwa DSN No.27/DSN-MUI/III/2002, on Al-Ijarah Al-Muntahiyah Bi Al-Tamlik.
8.3. Fatwa DSN No.43/DSN-MUI/VIII/2004 on Compensation (Ta’widh).
8.4. Fatwa DSN No.56/DSN-MUI/V/2007 on Ujrah Review Regulations for Sharia Financial Institutions.
Accounting/Recording System
9.1. PSAK No.107 on Ijarah Accounting.
9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).

II.2.3. MULTIJASA FINANCING

Definition
Provision of funds to transfer benefits from services for a specific period with rental payments (ujrah).
Ijarah or Kafalah Contract
Requirements
3.1. The BPRS may obtain compensation/service fees/ujrah/fees. The amount of compensation/ujrah/fees is agreed upon at the beginning of the contract and stated in nominal form (not in percentage form).
3.2. Financing involves three parties: the BPRS, the customer, and third parties.
3.3. The BPRS conducts analysis of the customer's financing application, including personal aspects such as character analysis (character) and/or financial aspects.
3.4. The BPRS and customer document the agreement in a written contract or other form equivalent to it.
3.5. The BPRS applies product information transparency and customer protection in accordance with applicable regulations.
3.6. The BPRS has policies and procedures for risk mitigation.
3.7. The BPRS has adequate recording and account administration systems.
Characteristics
4.1. The BPRS may provide ijarah multijasa financing for purposes such as education services, health services, tourism services, umrah pilgrimage services, and other services not contrary to Sharia Principles.
4.2. The BPRS may require the customer to provide invoices/service order proofs before submitting the financing application and/or before financing disbursement.
4.3. The BPRS may conduct random checks after the disbursement process to ensure that the disbursed funds match the stated purpose of use in the application.
4.4. The BPRS may charge administrative fees in accordance with the agreement, based on the actual costs directly related to the financing.
4.4. The BPRS may require collateral in the form of cash collateral or other forms of collateral.
4.6. The BPRS may set specific limits.
4.7. The BPRS may set a specific duration.
Objectives/Benefits
a. For BPRS
5.a.1. As one form of fund disbursement.
5.a.2. Obtaining income in the form of compensation/ujrah/fees. b. For Customers Obtaining benefits from specific services such as education, health, tourism, umrah pilgrimage, and/or other services not contrary to Sharia Principles.
Risk Identification
6.1. The BPRS faces potential credit risk caused by customer default or breach of contract.
6.2. The BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human error, system failures, and/or external events affecting BPRS operations.
Related Regulations
Related regulations include:
7.1. PBI No.7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data, and implementation regulations namely SEBI No.7/25/DPNP and its amendments.
7.2. PBI No.9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Collection and Disbursement Activities and Banking Services, as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS and its amendments.
7.3. PBI No.12/20/PBI/2010 on the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Credit Banks and Sharia Microfinance Banks, and implementation regulations namely SEBI No. 13/14/DKBU and its amendments.
7.4. PBI No.13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Microfinance Banks and SEBI No. 13/11/DPBS and its amendments.
7.5. POJK No.1/POJK.07/2013 on Consumer Protection in the Financial Services Sector and its amendments.
7.6. SEOJK No.12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Products and/or Financial Services and its amendments.
7.7. SEOJK No.13/SEOJK.07/2014 on Standard Contracts and its amendments.
7.8. SEOJK No.14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information and its amendments.
Sharia Fatwas
DSN Fatwa
8.1. Fatwa DSN No.09/DSN-MUI/IV/2000 on Ijarah Financing.
8.2. Fatwa DSN No.44/DSN-MUI/VII/2004 on Multijasa Financing.
8.3. Fatwa DSN No.11/DSN-MUI/IV/2000 on Kafalah.
8.4. Fatwa DSN No.43/DSN-MUI/VIII/2004 on Compensation (Ta’widh).
Accounting/Recording System
9.1. PSAK No. 107 on Ijarah Accounting.
9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).

II.3. FINANCING BASED ON SALES PRINCIPLES

II.3.1. MURABAHAH FINANCING

Definition
Provision of funds or receivables equivalent to such for goods purchase transactions at the purchase price plus margin based on approval or agreement between the BPRS and customer, obligating the customer to settle the debt/obligation.
Murabahah Contract
Requirements
3.1. The BPRS acts as the fund provider to purchase goods, and the customer as the buyer of the goods.
3.2. The goods becoming the murabahah asset must be clearly known in quantity, quality, purchase price, and specifications.
3.3. The goods becoming the murabahah asset must be tangible and already available or ready for use (ready stock) at the time of the contract.
3.4. The purchase price of the murabahah asset must be informed by the BPRS to the customer.
3.5. The financing duration is set based on the agreement between the BPRS and customer.
3.6. The BPRS conducts analysis of the customer's financing application, including personal aspects such as character analysis (character) and/or business aspects including business capacity analysis (capacity), financial (capital), and/or business prospects (condition).
3.7. The BPRS and customer document the agreement in a written contract or other form equivalent to it.
3.8. The BPRS applies product information transparency and customer protection in accordance with applicable regulations.
3.9. The BPRS has policies and procedures for risk mitigation.
3.10. The BPRS has adequate recording and account administration systems.
Characteristics
4.1. The BPRS may provide financing for working capital, investment, and/or consumption purposes.
4.2. Assets becoming murabahah objects can include property, motor vehicles, or other assets.
4.3. The BPRS may finance part or all of the purchase price of the goods.
4.4. The BPRS may delegate to the customer to purchase goods needed by the customer from third parties on behalf of and in the name of the BPRS. In this case, the murabahah contract can only be conducted after the goods have essentially become the property of the BPRS.
4.5. The BPRS may request a down payment from the customer as proof of commitment to purchase the murabahah asset before the contract is agreed upon.
a. If the murabahah contract is agreed upon, the down payment becomes part of the settlement of murabahah receivables. b. If the murabahah contract is voided, the down payment is returned to the customer after deducting actual losses borne by the BPRS. If the down payment is less than the actual loss, the BPRS may request additional funds from the customer.
4.6. The BPRS may provide discounts at the time of settling murabahah receivables, provided it is not agreed upon in the contract and the amount of the discount is left to the BPRS's discretion.
4.7. The BPRS, in recognizing murabahah income, can use the annuity method or the proportional method.
4.8. The BPRS may provide price discounts (discounts) from suppliers (suppliers) with the following treatment:
a. If provided before the murabahah contract occurs, the price discount becomes the customer's right and reduces the murabahah selling price. b. If provided after the murabahah contract occurs, it is divided as agreed in the contract. If not regulated in the contract, the price discount becomes the BPRS's right.
4.9. The BPRS may provide discounts on unpaid murabahah installments if the customer makes installment payments on time and/or experiences a decrease in payment ability, provided it is not agreed upon in the contract and the amount of the discount is left to the BPRS's discretion. In the event that the BPRS provides discounts on unpaid murabahah installments because the customer pays installments on time, the BPRS must have policies and criteria regarding customers who pay installments on time. The mechanism for providing murabahah installment discounts refers to the Indonesian Sharia Banking Accounting Guidelines (PAPSI).
4.10. The BPRS may charge penalties to customers who cannot make murabahah receivable installment payments, with indications including intentional elements and elements of fund misuse.
Objectives/Benefits
c. For BPRS
5.a.1. As one form of fund disbursement.
5.a.2. Obtaining income in the form of margin. d. For Customers 5.b.1. As one alternative to obtain specific goods through financing from the BPRS. 5.b.2. Can pay in installments with an installment amount that will not change during the contract period.
Risk Identification
6.1. The BPRS faces potential credit risk caused by customer default or breach of contract.
6.2. The BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human error, system failures, and/or external events affecting BPRS operations.
Related Regulations
Related regulations include:
7.1. PBI No.7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data, and implementation regulations namely SEBI No.7/25/DPNP and its amendments.
7.2. PBI No.9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Collection and Disbursement Activities and Banking Services, as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS and its amendments.
7.3. PBI No.12/20/PBI/2010 on the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Credit Banks and Sharia Microfinance Banks, and implementation regulations namely SEBI No. 13/14/DKBU and its amendments.
7.4. PBI No.13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Microfinance Banks and SEBI No. 13/11/DPBS and its amendments.
7.5. POJK No.1/POJK.07/2013 on Consumer Protection in the Financial Services Sector and its amendments.
7.6. SEOJK No.12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Products and/or Financial Services and its amendments.
7.7. SEOJK No.13/SEOJK.07/2014 on Standard Contracts and its amendments.
7.8. SEOJK No.14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information and its amendments.
Sharia Fatwas
DSN Fatwa
8.1. Fatwa DSN No.04/DSN-MUI/IV/2000 on Murabahah.
8.2. Fatwa DSN No.10/DSN-MUI/IV/2000 on Wakalah.
8.3. Fatwa DSN No.13/DSN-MUI/IX/2000 on Down Payments in Murabahah.
8.4. Fatwa DSN No.16/DSN-MUI/IX/2000 on Discounts in Murabahah.
8.5. Fatwa DSN No.23/DSN-MUI/III/2002 on Settlement Discounts in Murabahah.
8.6. Fatwa DSN No.43/DSN-MUI/VIII/2004 on Compensation (Ta’widh).
8.7. Fatwa DSN No. 46/DSN-MUI/II/2005 on Murabahah Receivable Discounts (Khashm Fi Al-Murabahah).
8.8. Fatwa DSN No.47/DSN-MUI/II/2005 on Settlement of Murabahah Receivables for Customers Unable to Pay.
8.9. Fatwa DSN No.48/DSN-MUI/II/2005 on Rescheduling Murabahah Receivables.
8.10. Fatwa DSN No.49/DSN-MUI/II/2005 on Conversion of Murabahah Contracts.
8.11. Fatwa DSN No.84/DSN-MUI/XII/2012 on Profit Recognition Methods for Al-Tamwil Bi Al-Murabahah (Murabahah Financing) in Sharia Financial Institutions.
8.12. Fatwa DSN No.90/DSN-MUI/XII/2013 on Transfer of Murabahah between Sharia Financial Institutions (LKS).
Accounting/Recording System
9.1. PSAK No.102 on Murabahah Accounting.
9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).

II.3.2. GOLD OWNERSHIP FINANCING (PKE)

Definition
Financing for gold ownership.
Murabahah Contract
Requirements
3.1 The object of Murabahah with Gold Collateral (PKE) is gold in the form of ingots (bars) and/or jewelry.
3.2 The PKE amount is the acquisition price of the gold financed by the BPRS after considering the down payment.
3.3 The collateral for PKE is the gold financed by the BPRS.
3.4 BPRS is required to have adequate written policies and procedures, including analysis procedures based on, among other things, the customer's repayment capacity.
3.5 The PKE collateral is as follows:
a. pledged; b. stored physically at the BPRS; and
c. cannot be exchanged for other collateral.
3.6 The PKE amount for each customer is at most IDR 150,000,000.00 (one hundred fifty million rupiah).
3.7 Customers are permitted to obtain Gold Collateral Qardh Financing and PKE simultaneously, with the following provisions:
a. the total financing balance is at most IDR 250,000,000.00 (two hundred fifty million rupiah); and b. the PKE balance is at most IDR 150,000,000.00 (one hundred fifty million rupiah).
3.8 The down payment for PKE is a certain percentage of the acquisition price of the gold financed by the BPRS, with the following provisions:
a. at least 20% (twenty percent), for gold in the form of ingots (bars); and/or b. at least 30% (thirty percent), for gold in the form of jewelry. The PKE down payment is paid in cash by the customer to the BPRS. The source of funds for the PKE down payment must come from the customer's own funds (self-financing) and not from loans.
3.9 The tenure of PKE is at least 2 (two) years and at most 5 (five) years. In the event of an extension of the financing tenure:
a. the agreed selling price in the initial contract must not increase; and b. it refers to the provisions of the Indonesian BPRS regulations regarding financing restructuring.
3.10 BPRS is prohibited from charging storage and maintenance fees for gold used as PKE collateral.
3.11 The method of PKE repayment settlement is as follows:
a. payment is made in equal installments each month; b. accelerated settlement can be done with the following provisions:
1) at least 1 (one) year after the financing contract has been in effect;
2) the customer is required to pay the entire principal and margin (total receivables) using funds that do not come from the sale of gold collateral; and
3) the customer may be given a discount for accelerated settlement but it cannot be agreed upon in the contract.
3.12 If the customer is unable to settle the PKE at maturity and/or the PKE is classified as non-performing, the collateral may be executed by the BPRS after passing 1 (one) year from the date of the PKE contract. The results of the collateral execution are offset against the customer's remaining obligations with the following provisions:
a. if the collateral execution result is greater than the customer's remaining obligation, the surplus is returned to the customer; or b. if the collateral execution result is less than the customer's remaining obligation, the deficit remains the customer's obligation.

3.13 BPRS must explain orally and in writing the product characteristics covering at least:
a. requirements for prospective customers; b. fees to be charged;
c. the amount of down payment the customer must pay;
d. the method of accelerated settlement; e. the method of settlement in the event of installment arrears or customer inability to pay; f. consequences in the event of installment arrears or customer inability to pay; and g. customer rights and obligations in the event of gold collateral execution.
3.14 BPRS has an adequate system for recording and account administration.

Characteristics
The financed gold can be in the form of ingots (bars) and/or gold in the form of jewelry.
Objectives/Benefits
a. For BPRS
5.a.1. As one form of fund disbursement.
5.a.2. Obtaining income in the form of margin. b. For Customers 5.b.1. It is one alternative to own gold through financing from the BPRS. 5.b.2. The financing amount does not change during the agreement period.
Risk Identification
6.1. BPRS faces potential credit risk caused by customer default or breach of contract.
6.2. BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human error, system failures, and/or external events affecting BPRS operations.
Related Provisions
Related provisions include:
7.1. PBI No.7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data and its implementation regulations, namely SEBI No.7/25/DPNP and its amendments.
7.2. PBI No.9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Gathering and Disbursement Activities and Banking Services and its implementation regulations, namely SEBI No.10/14/DPbS and its amendments.
7.3. PBI No.12/20/PBI/2010 on the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Banks and Sharia Rural Financing Banks and its implementation regulations, namely SEBI No.13/14/DKBU and its amendments.
7.4. PBI No.13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Rural Financing Banks and SEBI No. 13/11/DPBS and its amendments.
7.5. POJK No.1/POJK.07/2013 on Consumer Protection in the Financial Services Sector and its amendments.
7.6. SEOJK No.12/SEOJK.07/2014 on the Submission of Information in the Context of Marketing Financial Products and/or Services and its amendments.
7.7. SEOJK No.13/SEOJK.07/2014 on Standard Contracts and its amendments.
7.8. SEOJK No.14/SEOJK.07/2014 on the Confidentiality and Security of Consumer Data and/or Personal Information and its amendments.
Sharia Fatwa
National Sharia Board (DSN) Fatwa
8.1. DSN Fatwa No.04/DSN-MUI/IV/2000 on Murabahah.
8.2. DSN Fatwa No.10/DSN-MUI/IV/2000 on Wakalah.
8.3. DSN Fatwa No.13/DSN-MUI/IX/2000 on Down Payment in Murabahah.
8.4. DSN Fatwa No.16/DSN-MUI/IX/2000 on Discount in Murabahah.
8.5. DSN Fatwa No.23/DSN-MUI/III/2002 on Discount in Murabahah Settlement.
8.6. DSN Fatwa No.43/DSN-MUI/VIII/2004 on Compensation (Ta’widh).
8.7. DSN Fatwa No.46/DSN-MUI/II/2005 on Murabahah Bill Discount (Khashm Fi Al-Murabahah).
8.8. DSN Fatwa No.47/DSN-MUI/II/2005 on Settlement of Murabahah Receivables for Customers Unable to Pay.
8.9. DSN Fatwa No.48/DSN-MUI/II/2005 on Rescheduling Murabahah Receivables.
8.10. DSN Fatwa No.49/DSN-MUI/II/2005 on Conversion of Murabahah Contracts.
8.11. DSN Fatwa No.77/DSN-MUI/V/2010 on Non-Cash Gold Sales.
DSN Fatwa No.92/DSN-MUI/IV/2014 on Financing Secured by Rahn (At-Tamwil Al-Mautsuq Bi Al-Rahn).
Accounting System/Recording
9.1. PSAK No.102 on Murabahah Accounting.
9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).

II.3.3. ISTISHNA’ FINANCING

Definition
Provision of funds or receivables that can be equated to it for a goods sale transaction in the form of ordering the manufacture of specific goods with specific criteria and requirements agreed upon between the orderer/buyer and the seller/manufacturer.
Istishna’ Contract
Requirements
3.1. BPRS acts as the fund provider and seller for istishna’ transactions with customers as the buyer.
3.2. The specifications and price of the ordered goods in istishna’ are agreed upon by the customer and BPRS at the beginning of the contract.
3.3. The ordered goods must have generally known characteristics including: type, variety, quality, and quantity. The ordered goods must match the characteristics agreed upon between the customer and BPRS. In the event that the delivered goods are wrong or defective, BPRS must be responsible for its negligence.
3.4. Payment by the customer to BPRS must not be in the form of debt forgiveness or the provision of receivables.
3.5. BPRS cannot request additional price if the customer accepts goods with higher quality, unless there is an agreement between both parties.
3.6. BPRS is not required to give a price discount if the customer accepts goods with lower quality, unless there is an agreement between both parties.
3.7. The financing tenure is determined based on the agreement between BPRS and the customer.
3.8. BPRS analyzes the customer's financing application, which includes personal aspects such as character analysis and/or business aspects including business capacity analysis (capacity), financial (capital), and/or business prospects (condition).
3.9. BPRS and the customer put the financing agreement into a written agreement or other form that can be equated to it.
3.10. BPRS applies product information transparency and customer protection according to applicable regulations.
3.11. BPRS has policies and procedures for risk mitigation.
3.12. BPRS has an adequate system for recording and account administration.
Characteristics
4.1. BPRS can provide financing for working capital, investment, or consumption purposes.
4.2. The object of istishna’ can be property, motor vehicles, or other assets.
4.3. The istishna’ payment mechanism is agreed upon in the contract and can be done by:
a. Advance payment in full or in part after the contract but before the manufacture of the goods. b. Payment upon delivery of goods or during the manufacturing process (payment per installment/termin).
c. Deferred payment after the delivery of goods.
d. A combination of the above payment methods.
4.4. Istishna’ revenue recognition can be done using the percentage of completion method or the completed contract method.
4.5. In the event that all or part of the goods are not available according to the delivery time, quality, or quantity as agreed, the customer has the option to:
a. cancel the contract and request a refund from the bank; b. wait for the goods to be available; or
c. request BPRS to replace them with other goods of the same or different type as long as the market value is the same as the original ordered goods.
Objectives/Benefits
a. For BPRS
5.a.1. As one form of fund disbursement.
5.a.2. Obtaining income in the form of margin. b. For Customers Obtaining the required goods according to specific specifications.
Risk Identification
6.1. BPRS faces potential credit risk caused by customer default or breach of contract.
6.2. BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human error, system failures, and/or external events affecting BPRS operations.
Related Provisions
Related provisions include:
7.1. PBI No.7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data and its implementation regulations, namely SEBI No.7/25/DPNP and its amendments.
7.2. PBI No.9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Gathering and Disbursement Activities and Banking Services as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS and its amendments.
7.3. PBI No.12/20/PBI/2010 on the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Banks and Sharia Rural Financing Banks and its implementation regulations, namely SEBI No.13/14/DKBU and its amendments.
7.4. PBI No.13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Rural Financing Banks and SEBI No. 13/11/DPBS and its amendments.
7.5. POJK No.1/POJK.07/2013 on Consumer Protection in the Financial Services Sector and its amendments.
7.6. SEOJK No.12/SEOJK.07/2014 on the Submission of Information in the Context of Marketing Financial Products and/or Services and its amendments.
7.7. SEOJK No.13/SEOJK.07/2014 on Standard Contracts and its amendments.
7.8. SEOJK No.14/SEOJK.07/2014 on the Confidentiality and Security of Consumer Data and/or Personal Information and its amendments.
Sharia Fatwa
National Sharia Board (DSN) Fatwa
8.1. DSN Fatwa No.06/DSN-MUI/IV/2000 on Istishna’ Sales.
8.2. DSN Fatwa No.22/DSN-MUI/III/2002 on Parallel Istishna’ Sales.
8.3. DSN Fatwa No.43/DSN-MUI/VIII/2004 on Compensation (Ta’widh).
Accounting System/Recording
9.1. PSAK No.104 on Istishna’ Accounting.
9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).

II.3.4. SALAM FINANCING

Definition
Provision of funds or receivables that can be equated to it for the sale of ordered goods with the delivery of goods at a later date by the seller and the settlement is made by the buyer at the time the contract is agreed upon according to certain conditions.
Salam Contract
Requirements
3.1. BPRS can act as the buyer and/or seller in a salam transaction. In the event that BPRS acts as the buyer, BPRS conducts a salam transaction, and in the event that BPRS acts as the seller, BPRS will order from another party to provide the ordered goods in a parallel salam.
3.2. The specifications and price of the ordered goods are agreed upon at the beginning of the contract by the customer and BPRS in the first contract or by BPRS and the supplier in the second contract. The price of the ordered goods cannot change during the contract period.
3.3. The ordered goods must have generally known characteristics including: type, variety, quality, and quantity.
3.4. The ordered goods must match the characteristics agreed upon between the customer and BPRS or BPRS and the supplier. In the event that the delivered goods are wrong or defective, BPRS or the supplier must be responsible for its negligence.
3.5. Payment by the customer to BPRS must not be in the form of debt forgiveness or the provision of receivables.
3.6. Salam income is obtained from the difference between the selling price to the customer and the purchase price from the supplier.
3.7. BPRS analyzes the customer's financing application, which includes personal aspects such as character analysis and/or business aspects including business capacity analysis (capacity), financial (capital), and/or business prospects (condition).
3.8. BPRS and the customer put the agreement into a written agreement or other form that can be equated to it.
3.9. BPRS applies product information transparency and customer protection according to applicable regulations.
3.10. BPRS has policies and procedures for risk mitigation.
3.11. BPRS has an adequate system for recording and account administration.
Characteristics
4.1. In the event that BPRS acts as the buyer, BPRS can request guarantees from the supplier to avoid risks detrimental to BPRS.
4.2. BPRS can impose fines on the supplier.
Objectives/Benefits
a. For BPRS
5.a.1. As one form of fund disbursement.
5.a.2. Obtaining income. b. For Customers
Obtaining the required goods according to specific specifications.
Risk Identification
6.1. BPRS faces potential credit risk caused by customer default or breach of contract.
6.2. BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human error, system failures, and/or external events affecting BPRS operations.
Related Provisions
Related provisions include:
7.1. PBI No.7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data and its implementation regulations, namely SEBI No.7/25/DPNP and its amendments.
7.2. BI No.9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Gathering and Disbursement Activities and Banking Services as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS and its amendments.
7.3. PBI No.12/20/PBI/2010 on the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Banks and Sharia Rural Financing Banks and its implementation regulations, namely SEBI No.13/14/DKBU and its amendments.
7.4. PBI No.13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Rural Financing Banks and SEBI No. 13/11/DPBS and its amendments.
7.5. POJK No.1/POJK.07/2013 on Consumer Protection in the Financial Services Sector and its amendments.
7.6. SEOJK No.12/SEOJK.07/2014 on the Submission of Information in the Context of Marketing Financial Products and/or Services and its amendments.
7.7. SEOJK No.13/SEOJK.07/2014 on Standard Contracts and its amendments.
7.8. SEOJK No.14/SEOJK.07/2014 on the Confidentiality and Security of Consumer Data and/or Personal Information and its amendments.
Sharia Fatwa
National Sharia Board (DSN) Fatwa
8.1. DSN Fatwa No.05/DSN-MUI/IV/2000 on Salam Sales.
Accounting System/Recording
9.1. PSAK No.106 on Musyarakah Accounting.
9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).

II.4. FINANCING BASED ON LENDING PRINCIPLES
II.4.1. QARDH FINANCING

Definition
Provision of funds or receivables that can be equated to it based on agreement or consensus between the borrower and the lender, which obligates the borrower to repay the debt after a certain period.
Qardh Contract
Requirements
3.1. BPRS acts as the fund provider to give qardh loans to customers based on agreement.
3.2. The qardh loan given is a loan that does not require compensation.
3.3. BPRS is only allowed to charge administrative fees for qardh loans.
3.4. BPRS analyzes the customer's financing application, which includes personal aspects such as character analysis and/or financial aspects.
3.5. BPRS and the customer put the agreement into a written agreement or other form that can be equated to it.
3.6. BPRS applies product information transparency and customer protection according to applicable regulations.
3.7. BPRS has policies and procedures for risk mitigation.
3.8. BPRS has an adequate system for recording and account administration.
Characteristics
4.1. BPRS can request guarantees for the provision of qardh.
4.2. The source of qardh loan funds can come from internal or external BPRS.
4.3. BPRS can charge administrative fees to customers in nominal form and not linked to the amount and tenure of the loan.
Objectives/Benefits
a. For BPRS
5.a.1. As one form of fund disbursement.
5.a.2. As one form of implementing the social function of a Sharia bank. b. For Customers Obtaining loans with light and/or installment payments according to ability.
Risk Identification
6.1. BPRS faces potential credit risk caused by customer default or breach of contract.
6.2. BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human error, system failures, and/or external events affecting BPRS operations.
Related Provisions
Related provisions include:
7.1. PBI No.7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data and its implementation regulations, namely SEBI No.7/25/DPNP and its amendments.
7.2. PBI No.9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Gathering and Disbursement Activities and Banking Services as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS and its amendments.
7.3. PBI No.12/20/PBI/2010 on the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Banks and Sharia Rural Financing Banks and its implementation regulations, namely SEBI No.13/14/DKBU and its amendments.
7.4. PBI No.13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Rural Financing Banks and SEBI No. 13/11/DPBS and its amendments.
7.5. POJK No.1/POJK.07/2013 on Consumer Protection in the Financial Services Sector and its amendments.
7.6. SEOJK No.12/SEOJK.07/2014 on the Submission of Information in the Context of Marketing Financial Products and/or Services and its amendments.
7.7. SEOJK No.13/SEOJK.07/2014 on Standard Contracts and its amendments.
7.8. SEOJK No.14/SEOJK.07/2014 on the Confidentiality and Security of Consumer Data and/or Personal Information and its amendments.
Sharia Fatwa
National Sharia Board (DSN) Fatwa
8.1. DSN Fatwa No.19/DSN-MUI/IV/2001 on Al-Qardh.
8.2. DSN Fatwa No.79/DSN-MUI/IV/2001 on Qardh Using Customer Funds.
Accounting System/Recording
Indonesian Sharia Banking Accounting Guidelines (PAPSI).

II.4.2. GOLD-COLLATERAL QARDH FINANCING

Definition
Qardh financing with gold collateral bound by a rahn contract, where the pledged gold is stored and maintained by the BPRS for a certain period by paying storage and maintenance fees for the gold as the rahn object.
Contract
2.1. qardh contract, for binding the provision of funds by BPRS; and
2.2. rahn contract, for binding gold as collateral for the fund loan.
Requirements
3.1. The purpose of use is to finance short-term fund needs or additional short-term working capital for the micro and small business customer group as referred to in the law regulating micro, small, and medium enterprises, and is not intended for investment purposes.
3.2. The purpose of fund use by the customer must be clearly stated in the product application form.
3.3. Fees that can be charged by BPRS to customers include...

administration, insurance costs, and storage and maintenance costs.

3.4 The determination of the amount of storage and maintenance costs for gold collateral is based on the weight of the gold collateral and is not linked to the amount of financing received by the customer.

3.5 Income from the storage and maintenance of gold originating from the Gold-Pledged Qardh product, where the funding source comes from third-party funds, must be distributed to the fund-depositing customers.

3.6 BPRS is required to have adequate written policies and procedures (Standard Operating Procedure/SOP), including the application of risk management related to the Gold-Pledged Qardh product.

3.7 Gold to be handed over as collateral for Gold-Pledged Qardh must already be owned by the customer at the time the financing application is submitted.

3.8 The Gold-Pledged Qardh portfolio amount at the end of each month shall not exceed the smaller of either 20% (twenty percent) of the total amount of financing provided or 150% (one hundred fifty percent) of the BPRS capital as referred to in regulations governing Minimum Capital Requirements (KPMM).

3.9 Gold-Pledged Qardh financing may be provided for a maximum of Rp250,000,000.00 (two hundred fifty million rupiah) for each customer, with a financing term of a maximum of 4 (four) months.

3.10 Specifically for Micro and Small Business customers, Gold-Pledged Qardh financing may be provided for a maximum of Rp100,000,000.00 (one hundred million rupiah), with a financing term of a maximum of 18 (eighteen) months with monthly installments.

3.11 Financing to Value (FTV), which is the ratio between the amount of financing received by the customer and the value of the gold pledged by the customer to the BPRS, is as follows:

a. for cast gold (bars), the maximum is 90% (ninety percent) of the average selling price of 100 (one hundred) grams of gold and the buyback price of PT. ANTAM (Persero) Tbk. gold.

b. for gold jewelry, the maximum is 80% (eighty percent) of the average selling price of 100 (one hundred) grams of gold and the buyback price of PT. ANTAM (Persero) Tbk. gold.

BPRS may determine FTV using other references as long as the resulting FTV value is less than or equal to the established FTV value.

3.12 BPRS is required to explain orally or in writing (transparently) to customers, including:

a. product characteristics including features, risks, benefits, costs, requirements, and dispute resolution; and

b. customer rights and obligations, including in the event of gold collateral execution.

Characteristics

Financing sources can come from capital portions, retained profits, and/or third-party funds.

Objectives/Benefits

a. For BPRS

5.a.1. As one form of fund disbursement.

5.a.2. Obtaining income in the form of ujrah/fee.

b. For Customers

Obtaining financing with a fast and secure disbursement process.

Risk Identification

6.1. BPRS faces potential credit risk caused by customer breach of contract or default.

6.2. BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human error,

system failures, and/or external events affecting BPRS operations.

Related Regulations

Related regulations include:

7.1. PBI No.7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data and its implementation regulations, namely SEBI No.7/25/DPNP and its amendments.

7.2. PBI No.9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Collection and Disbursement Activities and Banking Services as amended by PBI No.10/16/PBI/2008 and SEBI No.10/14/DPbS and its amendments.

7.3. PBI No. 12/20/PBI/2010 on the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Credit Banks and Sharia Micro Financing Banks and its implementation regulations, namely SEBI No. 13/14/DKBU and its amendments.

7.4. PBI No.13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Micro Financing Banks and SEBI No.13/11/DPBS and its amendments.

7.5. POJK No.1/POJK.07/2013 on Consumer Protection in the Financial Services Sector and its amendments.

7.6. SEOJK No.12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Financial Products and/or Services and its amendments.

7.7. SEOJK No.13/SEOJK.07/2014 on Standard Contracts and its amendments.

7.8. SEOJK No.14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information and its amendments.

Sharia Fatwa

National Sharia Board Fatwa

8.1. DSN Fatwa No.19/DSN-MUI/IV/2001 on Al-Qardh.

8.2. DSN Fatwa No.79/DSN-MUI/IV/2001 on Qardh Using Customer Funds.

8.3. DSN Fatwa No.25/DSN-MUI/III/2002 on Rahn.

8.4. DSN Fatwa No.26/DSN-MUI/III/2002 on Gold Rahn.

8.5. DSN MUI Fatwa No.92/DSN-MUI/20014 on Financing accompanied by Rahn.

Accounting/Recording System

9.1. PSAK No.106 on Musyarakah Accounting.

9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).

II.5. SYNDICATED FINANCING

Definition

Joint financing provision among BPRSs or between BPRS and conventional Sharia banks, Sharia business units, or conventional banks to a single customer, where the financing amount is too large to be provided by a single bank alone. In a syndicated financing agreement, BPRS can act as arranger, underwriter, agent, or participant.

Contracts

2.1. Contracts between syndicate participants:
Mudharabah, Musyarakah, Wakalah bil Ujrah, and other suitable Sharia contracts.

2.2. Contracts between the syndicate entity and the customer:
Sales contracts, leasing contracts (ijarah), musyarakah, and other suitable Sharia contracts.

Requirements

3.1. Regulations related to accounts and contract documents:

a. In the event that syndication is conducted among Sharia banks, the accounts, contract documents, and other supporting documents can be administered/compiled into a single document;

b. In the event that syndication is conducted between a Sharia bank and a conventional bank or other financial institution, it must:

1) use separate financing accounts; and

2) create a master document (joint agreement) which is then followed by separate documents specifically for the Sharia bank and specifically for the conventional bank.

3.2. The liability of syndicate participants is not joint and several, where each syndicate participant is only liable for the portion of the financing amount that is their commitment.

3.3. Agreements are stipulated in written agreements or other forms that can be equated to it.

3.4. BPRS applies product information transparency and customer protection according to applicable regulations.

3.5. BPRS has policies and procedures for risk mitigation.

3.6. BPRS has adequate recording and account administration systems.

Characteristics

4.1. The financing term is generally medium to long-term.

4.2. One participant may be appointed as an agent to support syndicated financing activities and/or administer syndicated financing.

Objectives/Benefits

a. For BPRS

5.a.1. As one form of fund disbursement.

5.a.2. As a means of risk sharing.

5.a.3. Increasing BPRS financing capacity.

5.a.4. Obtaining income.

b. For Customers

Obtaining large financing amounts that are difficult to finance with a single BPRS alone.

Risk Identification

6.1. BPRS faces potential credit risk caused by customer breach of contract or default.

6.2. BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human error,

system failures, and/or external events affecting BPRS operations.

6.3. BPRS faces potential liquidity risk caused by BPRS's inability to meet maturing obligations from cash flow funding sources and/or high-quality liquid assets that can be pledged, due to non-payment of financing by customers, which may result in potential liquidity issues for BPRS.

Related Regulations

Related regulations include:

7.1. PBI No.7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data and its implementation regulations, namely SEBI No.7/25/DPNP and its amendments.

7.4. PBI No.13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Micro Financing Banks and SEBI No. 13/11/DPBS and its amendments.

7.5. POJK No.1/POJK.07/2013 on Consumer Protection in the Financial Services Sector and its amendments.

7.6. SEOJK No.12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Financial Products and/or Services and its amendments.

7.7. SEOJK No.13/SEOJK.07/2014 on Standard Contracts and its amendments.

7.8. SEOJK No.14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information and its amendments.

Sharia Fatwa

National Sharia Board Fatwa

8.1. DSN Fatwa No.91/DSN-MUI/IV/2014 on Syndicated Financing (Al-Tamwil Al-Mashrifi Al-Mujamma’).

8.2. Fatwas related to the contracts used.

Accounting/Recording System

Indonesian Sharia Banking Accounting Guidelines (PAPSI).

II.6. REFINANCING

Definition

Provision of financing facilities for customers who already fully own assets or for customers who have not yet settled previous financing.

Contracts

Suitable Sharia contracts.

Requirements

3.1. Refinancing can only be conducted for:

a. financing provided to prospective customers/customers who already fully own assets; and

b. financing provided to customers who have received financing that has not been settled.

3.2. Refinancing provided to prospective customers/customers who already fully own assets as per item 3.1.a is given to prospective customers/customers who are in the process of applying for financing to the BPRS.

3.3. In the event that refinancing is provided to customers who have not yet settled previous financing, the refinancing funds can be used by the customer to settle obligations and/or debts from previous financing.

3.4. In the event that refinancing is provided to customers for additional financing (top up) based on property that remains as collateral for previous financing, then:

a. the additional financing (top up) is treated as new financing;

b. the Financing to Value ratio for the additional financing (top up) refers to applicable regulations; and

c. the amount of additional financing (top up) provided must take into account the debit balance of previous financing using the same collateral.

These requirements refer to regulations governing the loan to value ratio or financing to value ratio for property credit or financing and down payments for motor vehicle credit or financing and its amendments.

3.5. BPRS applies product information transparency and customer protection according to applicable regulations.

3.6. BPRS conducts analysis of customer financing applications, including personal aspects such as character analysis and/or business aspects including business capacity analysis (capacity), financial (capital), and/or business prospects (condition).

3.7. BPRS and customers stipulate agreements in written contracts or other forms that can be equated to it.

3.8. BPRS has policies and procedures for risk mitigation.

3.9. BPRS has adequate recording and account administration systems.

Characteristics

4.1. The object of refinancing can be property, motor vehicles, or other assets.

4.2. BPRS conducts appraisal of the prospective customer's goods or assets to determine fair value.

4.3. There are 3 (three) mechanisms that can be used:

a. musyarakah mutanaqisah mechanism

1) Prospective customer applies for financing to BPRS for refinancing;

2) BPRS appraises the prospective customer's goods or assets to determine a fair value, in order to determine the business capital included by the customer in the syirkah with BPRS;

3) BPRS includes funds in a certain amount to be used as business capital for the syirkah with the customer, accompanied by the condition that the customer settles obligations and/or debts from previous financing, if any;

4) BPRS grants power of attorney (wakalah contract) to the customer to conduct lawful and good business, including via ijarah contract;

5) Customer and BPRS share business profits according to agreed ratio or capital share (proportional), and losses are shared according to capital share; and

6) Customer transfers commercial ownership of BPRS's share (hishshah) in installments according to the agreement;

b. al-bai' wa al-isti'jar mechanism (sale for lease)

1) Prospective customer who owns goods applies for financing to BPRS for refinancing;

2) BPRS purchases the customer's goods via bai' contract;

3) Customer settles obligations and/or debts from previous financing, if any;

4) BPRS and customer conduct ijarah muntahiyah bittamlik contract; and

5) Transfer of ownership of the leased object to the customer can only be done via hibah contract at the end of the ijarah contract;

c. al-bai' mechanism in the context of musyarakah mutanaqisah

1) Prospective customer who owns goods applies for financing to BPRS for refinancing;

2) BPRS appraises the prospective customer's goods or assets to determine a fair value, in order to purchase a portion by BPRS;

3) BPRS purchases (via al-bai' contract) a portion of the goods from the customer, resulting in syirkah over the goods in the formation of business capital for the syirkah;

4) Customer settles obligations and/or debts from previous financing, if any;

5) BPRS and customer conduct musyarakah mutanaqisah contract with capital in the form of goods stated in hishshah/unit hishshah.

Objectives/Benefits

a. For BPRS

5.a.1. As one form of fund disbursement.

5.a.2. Expanding BPRS product and activity diversity.

5.a.3. Obtaining income in the form of fees/ujrah/profit sharing.

b. For Customers

Obtaining additional financing.

Risk Identification

6.1. BPRS faces potential credit risk caused by customer breach of contract or default.

6.2. BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human error,

system failures, and/or external events affecting BPRS operations.

Related Regulations

Related regulations include:

7.1. PBI No.7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data and SEBI No.7/25/DPNP and its amendments.

7.4. PBI No.13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Micro Financing Banks and SEBI No. 13/11/DPBS and its amendments.

7.5. PBI No.17/10/PBI/2015 on Loan to Value Ratio or Financing to Value Ratio for Property Credit or Financing and Down Payments for Motor Vehicle Credit or Financing and SEBI No.17/25/DKMP and its amendments.

7.6. POJK No.1/POJK.07/2013 on Consumer Protection in the Financial Services Sector and its amendments.

7.7. SEOJK No.12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Financial Products and/or Services and its amendments.

7.8. SEOJK No.13/SEOJK.07/2014 on Standard Contracts and its amendments.

7.9. SEOJK No.14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information and its amendments.

Sharia Fatwa

National Sharia Board Fatwa

8.1. DSN Fatwa No.27/DSN-MUI/III/2002 on al-Ijarah al-Muntahiyyah bi al-Tamlik).

8.2. DSN Fatwa No.71/DSN-MUI/II/2008 on Sale and Lease Back).

8.3. DSN Fatwa No.73/DSN-MUI/XI/2008 on Musyarakah Mutanaqisah.

8.4. DSN Fatwa No.89/DSN-MUI/XII/2013 on Sharia Refinancing.

Accounting/Recording System

9.1. PSAK No.106 on Musyarakah Accounting.

9.2. PSAK No.107 on Ijarah Accounting.

9.3. Applicable PAPSI.

II.7. DEBT OR FINANCING TRANSFER

Definition

Transfer of customer debt from conventional financial institutions to BPRS and/or transfer of customer financing from Sharia financial institutions to BPRS.

Contracts

Suitable Sharia contracts.

Requirements

3.1. In the event of customer debt transfer from conventional financial institutions to BPRS:

a. The customer is a customer who has credit from a conventional financial institution and wishes to transfer their debt to BPRS.

b. The credit to be transferred is not yet settled.

c. The credit to be transferred has an underlying asset that does not contradict Sharia Principles.

3.2. In the event of customer financing transfer from Sharia financial institutions to BPRS:

a. The customer is a customer who has financing from a Sharia financial institution and wishes to transfer their financing to BPRS.

b. The financing to be transferred is not yet settled.

c. The financing to be transferred has an underlying asset that does not contradict Sharia Principles.

3.3. In the event that debt transfer or financing transfer is provided to customers for property financing purposes:

a. Financing solely intended for settling credit at previous conventional financial institutions or settling financing at previous Sharia financial institutions is not treated as new financing; or

b. Financing accompanied by additional funding (top up) is treated as new financing, thus subject to refinancing requirements.

3.4. BPRS conducts analysis of customer financing applications, including personal aspects such as character analysis and/or business aspects including business capacity analysis (capacity), financial (capital), and/or business prospects (condition).

3.5. BPRS and customers stipulate agreements in written contracts or other forms that can be equated to it.

3.6. BPRS applies product information transparency and customer protection according to applicable regulations.

3.7. BPRS has policies and procedures for risk mitigation.

3.8. BPRS has adequate recording and account administration systems.

Characteristics

4.1. In the event of customer debt transfer from conventional financial institutions to BPRS:

a. Alternative 1

1) BPRS provides qardh loan to the customer to settle the customer's credit at the conventional financial institution, so that the asset purchased with that credit becomes fully owned by the customer.

2) The customer sells that asset to BPRS and the sale proceeds are used to settle the qardh loan.

3) BPRS sells the asset that has become BPRS's property to the customer via murabahah with installment payments.

4) Meets qardh financing and murabahah financing requirements.

b. Alternative 2

1) BPRS, with the consent of the conventional financial institution, purchases a portion of the customer's asset financed by the conventional financial institution, resulting in joint ownership between BPRS and the customer over that asset.

2) The portion of the asset purchased by BPRS is the portion equivalent to the remaining debt (remaining credit) of the customer to the conventional financial institution.

3) BPRS sells the portion of the asset it has acquired to the customer via murabahah with installment payments.

4) Meets murabahah financing requirements.

c. Alternative 3

1) In the process of obtaining full ownership of the asset, the customer can conduct ijarah contract with BPRS.

2) If necessary, BPRS can help advance the customer's obligations by providing qardh loan.

3) The ijarah contract as referred to in item 1) cannot be conditioned on the provision of advancement as referred to in item 2).

4) The amount of ijarah service fee as referred to in item 1) must not be based on the amount of advancement provided by BPRS to the customer as referred to in item 2).

5) Meets ijarah financing and/or qardh financing requirements.

d. Alternative 4

1) BPRS provides qardh to the customer to settle the credit, thus the asset purchased with that credit becomes fully owned by the customer.

2) The customer sells that asset to BPRS and the sale proceeds are used to settle the qardh loan.

3) BPRS leases the asset that has become BPRS's property to the customer via ijarah muntahiyah bittamlik contract.

4) Meets ijarah muntahiyah bittamlik financing and qardh financing requirements.

e. Alternative 5

1) Customer who still has credit at a conventional financial institution applies for debt transfer to BPRS via musyarakah mutanaqisah contract.

2) BPRS and customer conduct musyarakah mutanaqisah contract with the condition that BPRS and customer provide business capital equivalent to the agreement between BPRS and the customer.

3) Customer settles their credit to the conventional financial institution.

4) Customer leases the goods that are the object of the syirkah (musyarakah) via ijarah contract and/or customer and BPRS conduct business activities with third parties in the form of:

a) leasing business activities;

b) sales business activities; and/or

c) profit-sharing business activities.

5) BPRS and customer share income from activities as regulated in item 4).

6) Customer purchases BPRS's share (hishshah) of the syirkah capital in stages.

f. Alternative 6

1) Customer who still has credit at a conventional financial institution applies for debt transfer to BPRS;

2) BPRS, after approving the customer's application, conducts hawalah bi al-ujrah contract and pays part or all of the customer's debt to the conventional financial institution at the agreed time;

3) The Customer pays ujrah to the BPRS for the hawalah service;
4) The Customer fulfills its obligations arising from the hawalah contract to the BPRS, either in cash or deferred/installments as agreed.

4.2. In the event of transferring a customer's financing from a Sharia financial institution to the BPRS:

a. Alternative 1 using the hawalah bil ujrah contract
1) A Customer who has murabahah financing debt at a Sharia financial institution submits an application to transfer their debt to the BPRS;
2) After approving the Customer's application, the BPRS enters into a hawalah bi alujrah contract and pays part or all of the Customer's debt to the Sharia financial institution at the agreed time;
3) The Customer pays ujrah to the BPRS for the hawalah service;
4) The Customer fulfills its obligations arising from the hawalah contract to the BPRS, either in cash or deferred/installments as agreed.

b. Alternative 2 using the ijarah muntahiyah bittamlik contract
1) A Customer who has murabahah financing debt at a Sharia financial institution submits an application to transfer their debt to the BPRS using the ijarah muntahiyah bittamlik contract.
2) After approving the Customer's application, the BPRS purchases the Customer's asset, which was purchased via a murabahah contract from the Sharia financial institution, with the promise that the object will be leased by the Customer under the ijarah muntahiyah bittamlik contract.
3) The BPRS and the Customer enter into an ijarah muntahiyah bittamlik contract.
4) The Customer settles their murabahah financing debt to the BPRS.

c. Alternative 3 using the musyarakah mutanaqisah contract
1) A Customer who has murabahah financing debt at a Sharia financial institution submits an application to transfer their debt to the BPRS using the musyarakah mutanaqisah contract.
2) The BPRS and the Customer enter into a musyarakah mutanaqisah contract with the stipulation that the BPRS includes business capital equivalent to the remaining debt of the Customer to the Sharia financial institution, and the Customer includes business capital in the form of goods whose value is equal to part of their debt already paid to the BPRS.
3) The Customer settles their murabahah financing debt to the BPRS.
4) The Customer leases the goods that are the object of the partnership (musyarakah) using an ijarah contract.
5) The Customer purchases the BPRS's share of the partnership capital in installments.

Objectives/Benefits
a. For the BPRS
5.a.1. As one form of fund disbursement.
5.a.2. Obtaining income in the form of remuneration/margin/ujrah/fee. b. For the Customer 5.b.1. Can convert conventional transactions into Sharia-compliant transactions. 5.b.2. Can transfer financing to the expected BPRS.
Risk Identification
6.1. The BPRS faces potential credit risk caused by customer default or breach of contract.
6.2. The BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human error, system failures, and/or external events affecting the BPRS's operations.
6.3. The BPRS faces potential liquidity risk caused by the BPRS's inability to meet due obligations from cash flow funding sources and/or high-quality liquid assets that can be pledged, without disrupting the BPRS's activities and financial condition.
Related Provisions
Related provisions include:
7.1. PBI No. 7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data and SEBI No. 7/25/DPNP along with its amendments.
7.2. PBI No. 9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Mobilization and Disbursement Activities and Banking Sharia Services as amended by PBI No. 10/16/PBI/2008 and SEBI No. 10/14/DPbS along with its amendments.
7.3. PBI No. 12/20/PBI/2010 on the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Credit Banks and Sharia Rural Financing Banks and SEBI No. 13/14/DKBU along with its amendments.
7.4. PBI No. 13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Rural Financing Banks and SEBI No. 13/11/DPBS along with its amendments.
7.5. POJK No. 1/POJK.07/2013 on Consumer Protection in the Financial Services Sector along with its amendments.
7.6. SEOJK No. 12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Financial Products and/or Services along with its amendments.
7.7. SEOJK No. 13/SEOJK.07/2014 on Standard Contracts along with its amendments.
7.8. SEOJK No. 14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information along with its amendments.
Sharia Fatwa
Fatwa of the National Sharia Council
8.1. DSN Fatwa No. 31/DSN-MUI/VI/2002 on Debt Transfer.
8.2. DSN Fatwa No. 04/DSN-MUI/IV/2000 on Murabahah.
8.3. DSN Fatwa No. 09/DSN-MUI/IV/2000 on Financing Ijarah.
8.4. DSN Fatwa No. 27/DSN-MUI/III/2002 on Al-Ijarah Al-Muntahiyah Bi Al-Tamlik Financing.
8.5. DSN Fatwa No. 90/DSN-MUI/III/2002 on Transfer of Murabahah Financing between Sharia Financial Institutions.
Accounting System/Recording
Indonesian Sharia Banking Accounting Guidelines (PAPSI).

II.8. SHARIA DEBT COLLECTION (ANJAK PIUTANG SYARIAH)

Definition
The transfer of the settlement of short-term receivables or claims from a Customer who has receivables or claims to the BPRS, which then collects such receivables from the debtor or the party designated by the debtor in accordance with Sharia Principles.
Wakalah bil Ujrah Contract
Requirements
3.1. The Customer delegates to the BPRS to handle the sales documents and then collect the receivables from the debtor or another party designated by the debtor.
3.2. The BPRS becomes the agent of the Customer to perform collection from the debtor or another party designated by the debtor to make payment.
3.3. The BPRS and the Customer formalize their agreement in a written contract or other form that can be equated to it.
3.4. The BPRS applies product information transparency and customer protection in accordance with applicable regulations.
3.5. The BPRS has policies and procedures for risk mitigation.
3.6. The BPRS has adequate recording and account administration systems.
Characteristics
4.1. The BPRS may charge administrative fees in accordance with the agreement.
4.2. The BPRS may provide advance funds (qardh) to the creditor in an amount equal to the receivable. In the event the BPRS provides advance funds (qardh), there must be no linkage between the wakalah bil ujrah contract and the qardh contract.
4.3. The BPRS may obtain ujrah/fee for its service of collecting receivables. In the event the BPRS obtains ujrah/fee:
a. The amount of ujrah/fee must be agreed upon at the time of the contract and stated in nominal form, not in percentage form calculated from the principal receivable; b. Payment of ujrah/fee can be taken from the advance funds or as agreed in the contract.
Objectives/Benefits
a. For the BPRS
5.a.4. As one form of fund disbursement.
5.a.5. Expanding the diversity of BPRS products and activities.
5.a.6. Obtaining income in the form of ujrah/fee. b. For the Customer Obtaining banking services based on Sharia Principles.
Risk Identification
6.1. The BPRS faces potential credit risk caused by customer default or breach of contract.
6.2. The BPRS faces potential operational risk caused by inadequate internal processes, internal process failures, human error, system failures, and/or external events affecting the BPRS's operations.
Related Provisions
Related provisions include:
7.1. PBI No. 7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data and SEBI No. 7/25/DPNP along with its amendments.
7.2. PBI No. 9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Mobilization and Disbursement Activities and Banking Sharia Services as amended by PBI No. 10/16/PBI/2008 and SEBI No. 10/14/DPbS along with its amendments.
7.3. PBI No. 12/20/PBI/2010 on the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Credit Banks and Sharia Rural Financing Banks and SEBI No. 13/14/DKBU along with its amendments.
7.4. PBI No. 13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Rural Financing Banks and SEBI No. 13/11/DPBS along with its amendments.
7.5. POJK No. 1/POJK.07/2013 on Consumer Protection in the Financial Services Sector along with its amendments.
7.6. SEOJK No. 12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Financial Products and/or Services along with its amendments.
7.7. SEOJK No. 13/SEOJK.07/2014 on Standard Contracts along with its amendments.
7.8. SEOJK No. 14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information along with its amendments.
Sharia Fatwa
Fatwa of the National Sharia Council
8.1. DSN Fatwa No. 67/DSN-MUI/III/2008 on Sharia Debt Collection.
Accounting System/Recording
9.1. PSAK No. 107 on Ijarah Accounting.
9.2. Indonesian Sharia Banking Accounting Guidelines (PAPSI).

III. PLACEMENT IN OTHER BANKS

Definition
Investment of BPRS funds in Sharia commercial banks or Sharia business units in the form of current accounts, savings, deposits, and in other BPRSs in the form of savings and deposits, as well as other similar investments based on Sharia Principles.
Contracts
2.1. Wadi'ah
2.2. Murabahah
2.3. Mudharabah
Requirements
3.1. The BPRS meets the relevant provisions.
3.2. The BPRS has policies and procedures for risk mitigation.
3.3. The BPRS has adequate recording and account administration systems.
Characteristics
4.1. Placement can be conducted in Indonesian Rupiah or foreign currency.
4.2. The BPRS may receive remuneration/bonus/margin/profit-sharing on the placement of funds in other BPRSs.
4.3. In the event placement in other banks is conducted through the money market, it refers to the relevant statutory regulations.
Objectives/Benefits
For the BPRS
5.a.1. Becoming an instrument in controlling the BPRS's liquidity.
5.a.2. Becoming a source of income for the BPRS.
Risk Identification
6.1. The BPRS faces potential credit risk caused by customer default or breach of contract.
6.2. The BPRS faces potential liquidity risk caused by the BPRS's inability to meet due obligations from cash flow funding sources and/or high-quality liquid assets that can be pledged, because the non-payment of financing by customers can result in potential liquidity issues for the BPRS.
Related Provisions
Related provisions include:
7.1. PBI No. 7/6/PBI/2005 on Transparency of Bank Product Information and Use of Customer Personal Data and SEBI No. 7/25/DPNP along with its amendments.
7.2. PBI No. 9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Mobilization and Disbursement Activities and Banking Sharia Services as amended by PBI No. 10/16/PBI/2008 and SEBI No. 10/14/DPbS along with its amendments.
7.3. PBI No. 12/20/PBI/2010 on the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Credit Banks and Sharia Rural Financing Banks and SEBI No. 13/14/DKBU along with its amendments.
7.4. PBI No. 13/14/PBI/2011 on the Assessment of Asset Quality of Sharia Rural Financing Banks and SEBI No. 13/11/DPBS along with its amendments.
7.5. POJK No. 1/POJK.07/2013 on Consumer Protection in the Financial Services Sector along with its amendments.
7.6. SEOJK No. 12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Financial Products and/or Services along with its amendments.
7.7. SEOJK No. 13/SEOJK.07/2014 on Standard Contracts along with its amendments.
7.8. SEOJK No. 14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information along with its amendments.
Sharia Fatwa
Fatwa of the National Sharia Council
8.1. DSN Fatwa No. 01/DSN-MUI/IV/2000 on Current Accounts.
8.2. DSN Fatwa No. 02/DSN-MUI/IV/2000 on Savings.
8.3. DSN Fatwa No. 03/DSN-MUI/IV/2000 on Deposits.
Accounting System/Recording
Indonesian Sharia Banking Accounting Guidelines (PAPSI).

IV. OTHER ACTIVITIES

IV.1. FINANCIAL SERVICE AGENTS WITHOUT BRANCHES IN THE CONTEXT OF INCLUSIVE FINANCE (LAKU PANDAI)

Definition
Activities where the BPRS acts as an extension of the organizing BPRS for Laku Pandai to provide banking services to the community in the context of inclusive finance.
Contracts
Appropriate Sharia contracts.
Terms and Conditions
3.1. The BPRS has cooperation with the organizing BPRS for Laku Pandai.
3.2. The organizing BPRS for Laku Pandai that is a partner of the BPRS must be a BPRS conducting business activities based on Sharia Principles.
3.3. The BPRS has policies and procedures for risk mitigation.
3.4. The BPRS has adequate recording and administration systems.
Characteristics
The BPRS may obtain fees for its activities as an agent.
Objectives/Benefits
a. For the BPRS
Obtaining fee-based income from the activities conducted. b. For the Customer Obtaining Sharia banking services.
Risk Identification
The BPRS faces potential operational risk if it cannot provide infrastructure in accordance with regulations.
Related Provisions
Related provisions include:
7.1. PBI No. 7/6/PBI/2005 on Transparency of BPRS Product Information and Use of Customer Personal Data and SEBI No. 7/25/DPNP along with its amendments.
7.2. PBI No. 9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Mobilization and Disbursement Activities and Banking Sharia Services as amended by PBI No. 10/16/PBI/2008 and SEBI No. 10/14/DPbS along with its amendments.
7.3. POJK No. 1/POJK.07/2013 on Consumer Protection in the Financial Services Sector along with its amendments.
7.4. POJK No. 19/POJK.03/2014 on Financial Services Without Branches in the Context of Inclusive Finance along with its amendments.
7.5. SEOJK No. 12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Financial Products and/or Services along with its amendments.
7.6. SEOJK No. 13/SEOJK.07/2014 on Standard Contracts along with its amendments.
7.7. SEOJK No. 14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information along with its amendments.
Sharia Fatwa
Fatwa of the National Sharia Council
8.1. DSN Fatwa No. 10/DSN-MUI/IV/2000 on Wakalah.
Accounting System/Recording
Indonesian Sharia Banking Accounting Guidelines (PAPSI).

IV.2. PAYROLL

Definition
Services to customers to perform mass salary payments to employees/workers.
Contracts
2.1. Wakalah
2.2. Wakalah Bil Ujrah
Requirements
3.1. The BPRS has a cooperation agreement or standing instruction for payroll implementation with the institution/party paying the salary.
3.2. The BPRS has adequate information technology that supports payroll services.
3.3. The BPRS has policies and procedures for risk mitigation.
3.4. The BPRS has adequate recording and administration systems.
Characteristics
4.1. Payroll services are conducted collectively using secure and reliable information technology owned by the BPRS.
4.2. Payroll services can be conducted by debiting the account of the institution/party paying the salary and crediting the account of the respective employees according to the provided salary list.
4.3. Payroll services can be conducted more than once as agreed between the BPRS and the institution/party paying the salary.
Objectives/Benefits
a. For the BPRS
5.a.1. Becoming a source of income derived from fees (ujrah).
5.a.2. Expanding the diversity of BPRS products and activities. b. For the Customer 5.b.1. Helping companies manage employee salary payments easily and securely. 5.b.2. Companies no longer pay salaries in cash. 5.b.3. Employees/workers can receive salaries on time. 5.b.4. Facilitating the monitoring and management process of payments/disbursements.
Risk Identification
The BPRS faces potential operational risks arising from errors and fraud within the BPRS, transaction process errors, failures of the information technology systems used by the BPRS, errors in payroll administration, and input errors in salary account numbers.
Related Provisions
Related provisions include:
7.1. PBI No. 7/6/PBI/2005 on Transparency of BPRS Product Information and Use of Customer Personal Data and SEBI No. 7/25/DPNP along with its amendments.
7.2. PBI No. 9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Mobilization and Disbursement Activities and Banking Sharia Services as amended by PBI No. 10/16/PBI/2008 and SEBI No. 10/14/DPbS along with its amendments.
7.3. POJK No. 1/POJK.07/2013 on Consumer Protection in the Financial Services Sector along with its amendments.
7.4. POJK No. 19/POJK.03/2014 on Financial Services Without Branches in the Context of Inclusive Finance along with its amendments.
7.5. SEOJK No. 12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Financial Products and/or Services along with its amendments.
7.6. SEOJK No. 13/SEOJK.07/2014 on Standard Contracts along with its amendments.
7.7. SEOJK No. 14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information along with its amendments.
Sharia Fatwa
Fatwa of the National Sharia Council
8.1. DSN Fatwa No. 01/DSN-MUI/IV/2000 on Current Accounts.
Accounting System/Recording
Indonesian Sharia Banking Accounting Guidelines (PAPSI).

IV.3. ELECTRONIC MONEY (E-MONEY) SALES AGENT

Definition
Activities where the BPRS acts as an agent in marketing electronic money (e-money).
Contracts
Appropriate Sharia contracts.
Terms and Conditions
3.1. The BPRS has cooperation with the BPRS issuing electronic money (e-money).
3.2. The BPRS issuing electronic money (e-money) that is a partner of the BPRS must be a BPRS conducting business activities based on Sharia Principles.
3.3. The BPRS has policies and procedures for risk mitigation.
3.4. The BPRS has adequate recording and administration systems.
Characteristics
The BPRS may obtain fees for its activities as an agent.
Objectives/Benefits
a. For the BPRS
Obtaining fee-based income from the activities conducted. b. For the Customer Obtaining Sharia banking services.
Risk Identification
The BPRS faces potential operational risk if it cannot provide infrastructure in accordance with regulations.
Related Provisions
Related provisions include:
7.1. PBI No. 7/6/PBI/2005 on Transparency of BPRS Product Information and Use of Customer Personal Data and SEBI No. 7/25/DPNP along with its amendments.
7.2. PBI No. 9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Mobilization and Disbursement Activities and Banking Sharia Services as amended by PBI No. 10/16/PBI/2008 and SEBI No. 10/14/DPbS along with its amendments.
7.3. PBI 11/12/PBI/2009 on Electronic Money as amended by PBI No. 16/8/PBI/2014 along with its amendments.
7.4. POJK No. 1/POJK.07/2013 on Consumer Protection in the Financial Services Sector along with its amendments.
7.5. SEOJK No. 12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Financial Products and/or Services along with its amendments.
7.6. SEOJK No. 13/SEOJK.07/2014 on Standard Contracts along with its amendments.
7.7. SEOJK No. 14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information along with its amendments.
Sharia Fatwa
Fatwa of the National Sharia Council
8.1. DSN Fatwa No. 10/DSN-MUI/IV/2000 on Wakalah.
Accounting System/Recording
Indonesian Sharia Banking Accounting Guidelines (PAPSI).

IV.4. FUND TRANSFER

Definition
Transfer of funds for own purposes or for customer purposes through the BPRS's account at a Sharia commercial bank or Sharia business unit.
Contract
Wakalah bil Ujrah
Requirements
3.1. The BPRS applies product information transparency and customer protection in accordance with applicable regulations.
3.2. The BPRS has policies and procedures for risk mitigation.
3.3. The BPRS has an adequate fund transfer organization system, related to system security, capital, management integrity, risk management, and/or readiness of facilities and infrastructure.
Characteristics
4.1. Fund transfers can be conducted through the BPRS's account at a Sharia commercial bank or Sharia business unit.
4.2. The BPRS may charge fund transfer fees while considering fairness aspects.
Objectives/Benefits
a. For the BPRS
Obtaining fee-based income. b. For the Customer Obtaining fund transfer services.
Risk Identification
The BPRS faces potential operational risks arising in fund transfers due to errors and fraud within the BPRS, errors in inputting the recipient's funds, and mistakes in conveying the amount of funds that do not match the order.
Related Provisions
Related provisions include:
7.1. PBI No. 7/6/PBI/2005 on Transparency of BPRS Product Information and Use of Customer Personal Data and SEBI No. 7/25/DPNP along with its amendments.
7.2. PBI No. 9/19/PBI/2007 on the Implementation of Sharia Principles in Fund Mobilization and Disbursement Activities and Banking Sharia Services as amended by PBI No. 10/16/PBI/2008 and SEBI No. 10/14/DPbS along with its amendments.
7.3. POJK No. 1/POJK.07/2013 on Consumer Protection in the Financial Services Sector along with its amendments.
7.4. SEOJK No. 12/SEOJK.07/2014 on Information Disclosure in the Context of Marketing Financial Products and/or Services along with its amendments.
7.5. SEOJK No. 13/SEOJK.07/2014 on Standard Contracts along with its amendments.
7.6. SEOJK No. 14/SEOJK.07/2014 on Confidentiality and Security of Consumer Data and/or Personal Information along with its amendments.
Sharia Fatwa
Fatwa of the National Sharia Council
8.1. DSN Fatwa No. 10/DSN-MUI/IV/2000 on Wakalah.
Accounting System/Recording
Indonesian Sharia Banking Accounting Guidelines (PAPSI).

IV.5. SAFE DEPOSIT BOX (SDB)

Definition
Service for renting boxes for storing valuables or securities in the BPRS's vault.
Contract
Ijarah
Requirements
3.1. Items stored in the SDB are valuable items that are not prohibited and not banned by the state.
3.2. The BPRS and the Customer formalize their agreement on the use of the SDB in the form of a written contract or using a form or other form that can be equated to it.
3.3. The BPRS has policies and procedures for risk mitigation.

3.4. BPRS has adequate recording and administration systems.
3.5. BPRS has a vault room in accordance with security standards.

Characteristics
4.1. BPRS may charge rent for the use of Safe Deposit Boxes (SDB) in accordance with the agreement.
4.2. BPRS may add loss insurance protection.
4.3. BPRS may set a specific storage period.
Objectives/Benefits
a. For BPRS
5.a.1. Becomes a source of income derived from fees (ujrah).
5.a.2. Expands the diversity of BPRS products and services. b. For Customers As a safe storage place.
Risk Identification
BPRS faces potential operational risks arising, among others, from errors and fraud within the BPRS, transaction process errors, and failures of the information technology systems used at the BPRS, or fraud by BPRS employees.
Related Provisions
Related provisions include:
7.1. POJK No.7/6/POJK/2005 on Transparency of BPRS Products and Use of Customer Personal Data and SEBI No. 7/25/DPNP together with its amendments.
7.2. POJK No.9/19/POJK/2007 on the Implementation of Sharia Principles in Fund Collection and Disbursement Activities and Financial Services at Sharia Banks as amended by POJK No.10/16/POJK/2008 and SEBI No.10/14/DPbS together with its amendments.
7.3. POJK No. 12/20/POJK/2010 on the Implementation of Anti-Money Laundering and Counter-Terrorism Financing Programs for Rural Credit Banks and Sharia Rural Financing Banks and implementation regulations, namely SEBI No. 13/14/DKBU together with its amendments.
7.4. POJK No.1/POJK.07/2013 on Consumer Protection in the Financial Services Sector together with its amendments.
7.5. SEOJK No.12/SEOJK.07/2014 on the Submission of Information in the Context of Marketing Financial Products and/or Services together with its amendments.
7.6. SEOJK No.13/SEOJK.07/2014 on Standard Agreements together with its amendments.
7.7. SEOJK No.14/SEOJK.07/2014 on the Confidentiality and Security of Consumer Personal Data and/or Information together with its amendments.
Sharia Fatwa
Fatwa of the National Sharia Council
8.1. DSN Fatwa No.24/DSN-MUI/III/2002 on Safe Deposit Box.
Accounting System/
Recording
Indonesian Sharia Banking Accounting Guidelines (PAPSI).

Determined in Jakarta
On the date of 22 December 2015
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signature
NELSON TAMPUBOLON

A copy in accordance with the original
Legal Director 1
Legal Department signature
Sudarmaji