SEOJK regarding the Appointment of Public Accountants, Actuaries, and/or Independent Appraisers as Examiners of Non-Bank Financial Service Institutions

To:

1. Public Accountants;
2. Actuaries; and
3. Independent Appraisers,
   At your place.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 17/SEOJK.05/2015 REGARDING THE APPOINTMENT OF PUBLIC ACCOUNTANTS, ACTUARIES, AND/OR INDEPENDENT APPRAISERS AS EXAMINERS OF NON-BANK FINANCIAL SERVICE INSTITUTIONS

In relation to the mandate of Article 6 paragraph (3) of Financial Services Authority Regulation Number 11/POJK.05/2014 concerning Direct Examination of Non-Bank Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2014 Number 198, Supplement to the State Gazette of the Republic of Indonesia Number 5576), it is necessary to regulate implementation provisions regarding the appointment of public accountants, actuaries, and/or independent appraisers as examiners of non-bank financial service institutions in this Financial Services Authority Circular Letter as follows:

I. GENERAL PROVISIONS

1. Non-Bank Financial Service Institutions, hereinafter abbreviated as LJKNB, are:
   a. insurance companies, sharia insurance companies, reinsurance companies, and sharia reinsurance companies, as referred to in legislation in the field of insurance; b. financing companies, including those that conduct all or part of their business using sharia principles, as referred to in legislation in the field of financing institutions;
   c. pension funds, including those that conduct all or part of their business using sharia principles, as referred to in legislation in the field of pension funds; and
   d. non-bank financial industry supporting financial service institutions, including insurance brokerage companies, reinsurance brokerage companies, public appraiser service offices, insurance loss appraiser companies, public accountant offices, and other supporting financial service institutions that support the non-bank financial industry.

2. Direct Examination is a series of activities to search for, collect, process, and evaluate data and/or information regarding LJKNB conducted at the LJKNB office and at other locations directly or indirectly related to LJKNB activities.

3. Examiner is a party appointed by the Financial Services Authority to conduct Direct Examination.

4. Financial Services Authority, hereinafter abbreviated as OJK, is an independent institution free from the interference of other parties, which has the function, task, and authority for regulation, supervision, examination, and investigation as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.

II. APPOINTMENT OF PUBLIC ACCOUNTANTS, ACTUARIES, AND/OR INDEPENDENT APPRAISERS AS EXAMINERS

1. OJK may appoint public accountants, actuaries, and/or independent appraisers as Examiners.

2. Public accountants, actuaries, and/or independent appraisers as referred to in number 1 must meet the following criteria:
   a. are not affiliated parties with the party being examined; b. have good mental attitude, ethics, and high professional responsibility;
   c. have never been sentenced for criminal offenses in the financial services sector based on a court decision that has acquired permanent legal force;
   d. act independently, honestly, and objectively; and e. are competent in their field and understand legislation in the financial services sector and other legislation.

3. Public accountants, actuaries, and/or independent appraisers as referred to in number 1 must also meet the following requirements:
   a. have professional licenses from the competent authority; and b. do not provide services to the LJKNB to be examined for a minimum of 2 (two) years prior to the date of appointment as an Examiner.

4. The procedure for the appointment of public accountants, actuaries, and/or independent appraisers as Examiners is carried out in accordance with the OJK Board of Commissioners Regulation concerning the OJK Goods and Services Procurement Guidelines.

5. The appointment of public accountants, actuaries, and/or independent appraisers as Examiners is stipulated in a work order letter.

6. The work order letter as referred to in number 5 is signed by the OJK Deputy Commissioner who oversees the LJKNB supervision function.

III. TASKS AND RESPONSIBILITIES OF APPOINTED PUBLIC ACCOUNTANTS, ACTUARIES, AND/OR INDEPENDENT APPRAISERS AS EXAMINERS

1. Public accountants, actuaries, and/or independent appraisers appointed as Examiners are tasked with carrying out Direct Examination in accordance with the OJK Board of Commissioners Regulation concerning the Procedure for Direct Examination and the OJK Board of Commissioners Circular Letter concerning Guidelines for Direct Examination of Non-Bank Financial Service Institutions established by OJK.

2. Public accountants, actuaries, and/or independent appraisers as referred to in number 1 are responsible for the execution of tasks as stipulated in the work order letter.

IV. RIGHTS AND OBLIGATIONS OF APPOINTED PUBLIC ACCOUNTANTS, ACTUARIES, AND/OR INDEPENDENT APPRAISERS AS EXAMINERS

1. Public accountants, actuaries, and/or independent appraisers appointed as Examiners are entitled to remuneration and/or other service fees as stipulated in the work order letter in accordance with the provisions applicable at OJK.

2. Public accountants, actuaries, and/or independent appraisers appointed as Examiners are obligated to maintain the confidentiality of information related to the LJKNB being examined.

V. CLOSING

The provisions of this OJK Circular Letter shall come into force on the date of establishment.

To ensure that everyone knows, order the announcement of this OJK Circular Letter by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on 8 June 2015
EXECUTIVE HEAD OF SUPERVISOR
FOR INSURANCE, PENSION FUNDS,
FINANCING INSTITUTIONS,
AND OTHER FINANCIAL SERVICE INSTITUTIONS
FINANCIAL SERVICES AUTHORITY,
Signed,
FIRDAUS DJAELANI

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2015 NUMBER 48 DATE 16 JUNE 2015

A copy consistent with the original
Legal Director I
Legal Department,
Signed,
Signed,
Sudarmaji