SEOJK Regarding the Assessment of Competence and Fit and Properness for Key Parties of Non-Bank Financial Service Institutions

To:

Board of Directors of Insurance Companies;
Board of Directors and Acting Board of Directors of Pension Funds;
Board of Directors of Financing Companies;
Board of Directors of Guarantee Institutions;
Board of Directors of Venture Capital Companies; and
Board of Directors of Pawnshop Companies,
At your location.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 31/SEOJK.05/2016

REGARDING

ASSESSMENT OF COMPETENCE AND FIT AND PROPERNESS FOR KEY PARTIES OF NON-BANK FINANCIAL SERVICE INSTITUTIONS

In accordance with the mandate of Article 35 of the Financial Services Authority Regulation Number 27/POJK.03/2016 concerning the Assessment of Competence and Fit and Properness for Key Parties of Financial Service Institutions (State Gazette of the Republic of Indonesia Year 2016 Number 147, Supplement to the State Gazette of the Republic of Indonesia Number 5098), it is necessary to regulate the implementation provisions for the assessment of competence and fit and properness for key parties in non-bank financial service institutions through this Circular Letter of the Financial Services Authority as follows:

I. GENERAL PROVISIONS

In this Circular Letter of the Financial Services Authority, the following terms are defined:

Non-Bank Financial Service Institution, hereinafter abbreviated as LJKNB, is a financial service institution that conducts activities in the non-bank financial sector, including:
a. Insurance Company is an insurance company, Sharia insurance company, reinsurance company, Sharia reinsurance company, insurance broker company, reinsurance broker company, and insurance loss assessor company as referred to in Law Number 40 of 2014 concerning Insurance; b. Pension Fund is a legal entity that manages and implements a program promising pension benefits as referred to in Law Number 11 of 1992 concerning Pension Funds, including those that conduct all business activities based on Sharia principles;
c. Financing Company is a business entity that conducts financing activities for the procurement of goods and/or services, including those that conduct all business activities based on Sharia principles as referred to in legislation regarding financing companies and Sharia financing companies;
d. Guarantee Institution is a guarantee company, Sharia guarantee company, re-guarantee company, and Sharia re-guarantee company that conducts guarantee activities as referred to in Law Number 1 of 2016 concerning Guarantees; e. Venture Capital Company, hereinafter abbreviated as PMV, is a business entity that conducts venture capital business activities, including those that conduct all business activities based on Sharia principles as referred to in legislation regarding venture capital companies and Sharia venture capital companies; f. Pawnshop Company is a private pawnshop company and government pawnshop company, including those that conduct business activities based on Sharia principles as referred to in legislation regarding pawnshop businesses.
Key Party is a party that owns, manages, supervises, and/or has significant influence on the LJKNB.
Controlling Shareholder, hereinafter abbreviated as PSP, is a legal entity, individual, and/or business group that owns shares or shares equivalent to those of the LJKNB and has the ability to control the LJKNB.
General Meeting of Shareholders, hereinafter abbreviated as RUPS, is the general meeting of shareholders as referred to in Law Number 40 of 2007 concerning Limited Liability Companies for LJKNB in the form of a limited liability company or equivalent to RUPS for LJKNB in the form of a cooperative legal entity, joint venture, pension fund, state-owned enterprise, regional-owned enterprise, regional-owned joint venture, or limited partnership.
Board of Directors is the board of directors as referred to in Law Number 40 of 2007 concerning Limited Liability Companies for LJKNB in the form of a limited liability company or equivalent to the Board of Directors for LJKNB in the form of a cooperative legal entity, joint venture, pension fund, state-owned enterprise, regional-owned enterprise, regional-owned joint venture, or limited partnership.
Board of Commissioners is the board of commissioners as referred to in Law Number 40 of 2007 concerning Limited Liability Companies for LJKNB in the form of a limited liability company or equivalent to the Board of Commissioners for LJKNB in the form of a cooperative legal entity, joint venture, pension fund, state-owned enterprise, regional-owned enterprise, regional-owned joint venture, or limited partnership.
Sharia Supervisory Board is a supervisor recommended by the National Sharia Council, Indonesian Ulema Council, placed in the LJKNB or Sharia unit, tasked with supervising business activities to ensure compliance with Sharia principles.
Controller of Insurance Company is a party that directly or indirectly has the ability to determine the Board of Directors and Board of Commissioners, and/or influence the actions of the Board of Directors and Board of Commissioners in the Insurance Company.
Control is an action aimed at influencing the management and/or policy of the company, including the LJKNB, in any manner, whether directly or indirectly.
Internal Auditor is an official in the Insurance Company responsible for evaluating and improving the effectiveness of risk management, controls, and corporate governance processes, working independently and in accordance with applicable practice standards.
Company Actuary is an official in insurance companies, Sharia insurance companies, reinsurance companies, and Sharia reinsurance companies appointed and responsible for managing the financial impact of risks faced by the company, working independently and in accordance with applicable practice standards.
Financial Services Authority, hereinafter abbreviated as OJK, is the Financial Services Authority as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.

II. SCOPE OF PARTIES SUBJECT TO COMPETENCE AND FIT AND PROPERNESS ASSESSMENT

Competence and fit and properness assessments are conducted against parties nominated as Key Parties.
Key Parties required to undergo competence and fit and properness assessments include:
a. PSP, including:
1) individuals and/or legal entities that will purchase, receive donations, inherit, or undergo other forms of share transfer in the LJKNB, thereby causing them to become PSP;
2) LJKNB shareholders who are not classified as PSP (non-PSP) that purchase, receive donations, inherit, or undergo other forms of share transfer in the LJKNB, thereby causing them to become PSP;
3) non-PSP that increase capital contributions, thereby causing them to become PSP;
4) individuals and/or legal entities that will become PSP in a "merged LJKNB" (merger);
5) individuals and/or legal entities that will become PSP in a "consolidated LJKNB" (consolidation); and/or
6) individuals and/or legal entities that will become PSP in an LJKNB to be established.
b. Controllers of Insurance Companies, including:
1) individuals and/or legal entities that are shareholders of the Insurance Company and meet the criteria for PSP;
2) individuals and/or legal entities that are not shareholders of the Insurance Company but are designated by the Insurance Company as controllers, including member representative bodies in insurance companies in the form of joint venture legal entities; and/or
3) individuals and/or legal entities that are not shareholders of the Insurance Company but are designated by the OJK as controllers.
c. Key Parties other than PSP or Controllers of Insurance Companies, consisting of members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries, including:
1) individuals who have never served as members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries in the LJKNB, who are nominated to serve as members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries in the LJKNB;
2) individuals currently serving as members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries in the LJKNB, who are nominated to serve as members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries in another LJKNB, whether in the same financial service sector or a different one;
3) individuals who have previously served as members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries in the LJKNB, who are nominated to serve as members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries, in the same LJKNB or in another LJKNB, examples:
a) individuals who previously served as members of the Board of Commissioners who are nominated as independent commissioners, in the same LJKNB or in another LJKNB, provided that independent commissioner requirements are met; b) individuals who previously served as Company Actuaries who are nominated to serve as members of the Board of Directors in the same LJKNB or in another LJKNB; or c) individuals who previously served as members of the Board of Directors who are nominated as lead commissioners in the same LJKNB or in another LJKNB;
4) members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries who will transition positions within the same company, examples:
a) members of the Board of Commissioners who will transition to serve as members of the Board of Directors within the same company; b) members of the Board of Directors who will transition to serve as members of the Board of Commissioners within the same company; or c) members of the Board of Directors or members of the Board of Commissioners who will transition to higher positions within the same company, examples:
(1) members of the Board of Directors who will be appointed as chief executives, or equivalent, within the same company, and/or (2) members of the Board of Commissioners who will be appointed as lead commissioners, or equivalent, within the same company;
5) members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries originating from an LJKNB that undergoes merger or consolidation, examples:
a) members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries in a "merged LJKNB" originating from an "LJKNB undergoing merger"; b) members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries in a "merged LJKNB" originating from an "LJKNB receiving merger," including term extensions; or c) members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries in a "consolidated LJKNB" originating from an "LJKNB undergoing consolidation."
PSP as referred to in letter a is individuals, legal entities, and/or business groups that:
a. own shares or capital amounting to 25% (twenty-five percent) or more of the issued shares with voting rights; or b. own shares or capital less than 25% (twenty-five percent) of the issued shares with voting rights but can be proven to have control over the LJKNB, whether directly or indirectly.
Competence and fit and properness assessments are not conducted for term extensions in the same LJKNB for members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries, except:
a) term extensions as referred to in Article 35 paragraph (2) of Financial Services Authority Regulation Number 27/POJK.03/2016 concerning the Assessment of Competence and Fit and Properness for Key Parties of Financial Service Institutions; and b) term extensions as referred to in letter c number 5) letter b).
Term extensions as referred to in number 4 are any reassignments to the same, equivalent, or lower positions, examples:
a) same position is a marketing director appointed again as marketing director within the same company; b) equivalent position is a finance director appointed as risk management director within the same company; and c) lower position is:
1) chief executive appointed as director within the same company; or
2) lead commissioner appointed as commissioner within the same company.

III. REQUIREMENTS IN COMPETENCE AND FIT AND PROPERNESS ASSESSMENT

A. Integrity Requirements

Integrity requirement assessments are conducted to ensure the level of compliance and good faith of Key Parties in managing, supervising, and/or executing business processes so that companies in the LJKNB sector can meet their obligations to creditors, debtors, policyholders, insured parties, participants, guarantee recipients, and/or other consumers.
Criteria for assessing integrity requirements for Key Parties include:
a. legal capacity to perform legal acts; b. good character and morality, at least demonstrated by a attitude of complying with applicable regulations, including never being sentenced for proven criminal offenses within a certain period before nomination, including:
1) criminal offenses in the financial service sector whose sentences have been fully served within the last 20 (twenty) years before nomination;
2) criminal offenses, namely offenses listed in the Criminal Code (KUHP) and/or similar foreign criminal codes with a prison sentence threat of 1 (one) year or more whose sentences have been fully served within the last 10 (ten) years before nomination; and/or
3) other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal weapons trade, terrorism, counterfeiting currency, tax offenses, forestry offenses, environmental offenses, and maritime and fisheries offenses, whose sentences have been fully served within the last 20 (twenty) years before nomination.
The phrase "before nomination" as referred to in number 1), number 2), and number 3) means calculated from the date the individual has finished serving their criminal sentence until the date of the LJKNB's request letter to the OJK;
c. commitment to comply with legislation and support OJK policies, demonstrated by:
1) never violating prudential principles in the financial service sector; and
2) never violating legislation in the financial service sector;
d. commitment to the healthy development of the LJKNB, demonstrated by:
1) submission of plans by prospective PSP and/or prospective Controllers of Insurance Companies regarding the operational development of the LJKNB, which must at least contain the direction and strategy for LJKNB development, strategies in case the owned and/or controlled LJKNB faces financial difficulties, and capital plans for the LJKNB for a minimum period of 3 (three) years;
2) never violating commitments previously agreed upon with the supervising and regulating agencies of the LJKNB, namely acts of failing to fulfill part or all of the commitments contained in meeting minutes, minutes of agreement, or statements of commitment letters, including failure to execute:
a) recommendations from audit report results; b) programs for the rehabilitation of the LJKNB; and c) settlement of the LJKNB's obligations to creditors, debtors, policyholders, insured parties, participants, guarantee recipients, and/or other consumers previously agreed upon;
3) commitment not to commit and/or repeat acts and/or actions that cause the individual to be listed as a prohibited party as a Key Party, for candidates who have previously been listed as prohibited parties as Key Parties;
4) never committing acts that provide unfair benefits to shareholders, Key Parties, employees, and/or other parties that can harm or reduce the rights of creditors, debtors, policyholders, insured parties, participants, guarantee recipients, and/or other consumers;
5) never committing acts inconsistent with their authority or beyond their authority; and/or
6) never being declared incapable of exercising their authority; and
e. not included as parties prohibited from being Key Party candidates.

B. Financial Reputation Requirement Assessment

Assessment of financial reputation requirements is conducted to evaluate financial capability and assess the involvement of members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, Company Actuaries, and Controllers of Insurance Companies who are not shareholders in the criteria for assessing financial reputation requirements.
Criteria for assessing financial reputation requirements for Key Parties as referred to in number 1 include:
a. no non-performing loans and/or financing; and b. never declared bankrupt and/or never served as shareholders, Controllers of Insurance Companies who are not shareholders, members of the Board of Directors, acting board of directors, or members of the Board of Commissioners who were declared guilty causing a company to be declared bankrupt within the last 5 (five) years before nomination.
The definition of non-performing loans as referred to in letter a number 2 does not include non-performing loans originating from annual credit card fees, credit card administrative fees, and/or other charges related to credit cards that do not originate from credit card usage transactions.

C. Financial Feasibility Requirement

Assessment of financial feasibility requirements is conducted to evaluate the financial capability of PSP or Controllers of Insurance Companies who are shareholders in the financial reputation factor criteria.
Criteria for assessing financial feasibility requirements include:
a. having financial reputation as referred to in letter B number 2; b. having financial capability that can support the development of the LJKNB business, namely:
1) the financial position of individual PSP capable of supporting business development, accompanied by a statement letter from the individual PSP that they have financial capability, which can be supported by evidence; and
2) the position of the latest audited annual financial reports for legal entity PSP, including liquidity position, solvency position, investment placement position, return on assets position, and return on equity position; and
c. commitment to undertake necessary efforts if the LJKNB faces financial difficulties.

D. Competence Requirement

Assessment of the competence factor is conducted to evaluate the knowledge, ability, experience, and expertise possessed by members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, and Company Actuaries to ensure they are adequate and relevant to their positions.
Criteria for assessing the competence factor for members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, and Company Actuaries include assessments of:
a. knowledge and ability in strategic management conducted to ensure that:
1) members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries have adequate and relevant knowledge for their positions, demonstrated by:
a) knowledge of organizational structure, management, job descriptions, and responsibilities; b) potential ability to analyze business processes, lead organizations, and manage human resources to achieve organizational goals; c) basic supervisory knowledge including internal controls, specifically for members of the Board of Commissioners and members of the Sharia Supervisory Board; d) basic knowledge related to leadership and conflict management specifically for members of the Board of Commissioners and members of the Sharia Supervisory Board; and/or e) ability to evaluate company obligations or other technical actuarial aspects;
2) members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries have an understanding of legislation, demonstrated by:
a) understanding of legislation in the financial service sector, prioritizing legislation in the industry where the members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries will serve; b) basic understanding of other relevant legislation, including understanding of legislation in the fields of limited liability companies, OJK, bankruptcy, and money laundering crimes, and their implementing regulations;
3) members of the Board of Directors, acting board of directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Company Actuaries have the ability to conduct strategic management for healthy business development, demonstrated by:
a) for members of the Board of Directors, namely:
(1) formulating the vision and mission of the company; (2) conducting LJKNB situation analysis; (3) conducting analysis of the internal development conditions of the LJKNB; (4) setting targets to be achieved regarding the position held; and (5) designing short-term, medium-term, and long-term strategies to achieve company objectives, including the ability to anticipate future developments

for the future, such as the ability to prepare annual business plans and medium-term and long-term corporate plans using realistic and measurable assumptions; b) for members of the Board of Commissioners, members of the Sharia Supervisory Board, and Internal Auditors, namely:
(1) conducting a basic analysis of the LJKNB's situation; (2) conducting an analysis of the development of the LJKNB's internal conditions, including the company's financial health condition, human resources, and technology; and (3) conducting an analysis of the policies of the Board of Directors members; c) for the Company Actuary, namely:
(1) conducting an analysis of the company's situation; and (2) conducting an analysis of the development of the company's internal conditions; b. experience in the LJKNB field and/or other fields relevant to their position, which is demonstrated by:

experience at a relevant financial service institution; and/or
experience at a position relevant to the plan to be appointed or employed; and
c. expertise in the LJKNB field and/or other fields relevant to their position at the LJKNB.

IV. APPLICATION PROCEDURE AND ADMINISTRATIVE REQUIREMENTS
A. Application Procedure

An application to obtain approval to become a Key Party is submitted by:
a. prospective owners, founders, or Board of Directors members of the LJKNB in the case of an LJKNB business license application; and b. Board of Directors members of the LJKNB, in the case where the LJKNB has obtained a business license.
In the event that the Board of Directors members of the LJKNB as referred to in item 1 letter a or letter b cannot perform their functions or have a conflict of interest with the LJKNB, the application is submitted by:
a. other Board of Directors members who do not have a conflict of interest with the LJKNB; b. members of the Board of Commissioners if all Board of Directors members cannot perform their functions or have a conflict of interest with the LJKNB; or
c. other parties appointed by the General Meeting of Shareholders (GMS) if all Board of Directors members or members of the Board of Commissioners cannot perform their functions or have a conflict of interest with the LJKNB.
Applications to obtain approval to become a Key Party as referred to in items 1 and 2 are submitted to the OJK using Format 1 as contained in Appendix I which is an inseparable part of this OJK Circular.
Submission of the application letter to obtain approval to become a Key Party as referred to in item 3 must be accompanied by administrative requirement documents.
The LJKNB fills out the administrative requirements fulfillment list using Format 2 as contained in Appendix I which is an inseparable part of this OJK Circular.
The LJKNB must first conduct a self-assessment of the Board of Directors members, executive officers, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, and Company Actuaries before submitting them to the OJK using Format 3 as contained in Appendix I which is an inseparable part of this OJK Circular.
The self-assessment as referred to in item 6 is conducted by the party having the nomination and remuneration function at each respective LJKNB.
In the event that the OJK's data communication network system related to licensing is available, then the submission of the application letter to obtain approval to become a Key Party and/or administrative requirement documents as referred to in item 4 is submitted to the OJK online.
In the event that the OJK's data communication network system is not available or there is a technical disturbance at the time of submission of the application to obtain approval to become a Key Party and/or administrative requirement documents, the application and/or administrative requirement documents are submitted to the OJK offline.
Submission of the application to obtain approval to become a Key Party and/or administrative requirement documents offline as referred to in item 9 must be submitted in hardcopy and softcopy form in compact disc (CD) or other electronic data storage media.
If the OJK experiences technical disturbances as referred to in item 9, the OJK announces it through the OJK website on the same day the technical disturbance occurs.
Submission of applications to obtain approval to become a Key Party for prospective Key Parties submitted by the LJKNB must state the number of Key Parties according to the targeted position.
B. Administrative Requirement Documents
Completeness of administrative requirement documents as referred to in letter A item 4 for parties nominated as Individual Principal Shareholders (PSP) and/or Individual Insurance Company Controllers who are shareholders, namely:
a. a completed list using Format 4 letter A as contained in Appendix I which is an inseparable part of this OJK Circular, accompanied by:

photocopy of identity documents in the form of an identity card (KTP) or valid passport;
tax identification number (NPWP) for Indonesian citizens or equivalent documents valid for foreign citizens; and
2 (two) sheets of the latest color passport photos with size 4x6 cm; and
b. a statement letter that has been filled out completely, affixed with sufficient stamp duty, and signed by the nominated party using Format 5 letter A as contained in Appendix I which is an inseparable part of this OJK Circular, which contains a statement of meeting integrity aspects, financial feasibility aspects, and not undergoing a competence and integrity assessment process at a financial service institution.

Completeness of administrative requirement documents as referred to in letter A item 4 for parties nominated as Individual Insurance Company Controllers who are not shareholders, namely:
a. a completed list using Format 4 letter B as contained in Appendix I which is an inseparable part of this OJK Circular, accompanied by:

photocopy of identity documents in the form of an identity card (KTP) or valid passport;
tax identification number (NPWP) for Indonesian citizens or equivalent documents valid for foreign citizens; and
2 (two) sheets of the latest color passport photos with size 4x6 cm; and
b. a statement letter that has been filled out completely, affixed with sufficient stamp duty, and signed by the nominated party using Format 5 letter B as contained in Appendix I which is an inseparable part of this OJK Circular, which contains a statement of meeting integrity aspects, financial reputation aspects, and not undergoing a competence and integrity assessment process at a financial service institution.

Completeness of administrative requirement documents as referred to in letter A item 4 for parties nominated as Legal Entity Principal Shareholders (PSP) and/or Legal Entity Insurance Company Controllers who are shareholders, namely:
a. a completed list using Format 4 letter C as contained in Appendix I which is an inseparable part of this OJK Circular, which contains legal entity data, accompanied by:

photocopy of establishment documents in the form of a legal entity deed, including the latest amended articles of association approved by the competent authority or equivalent documents for foreign business entities according to regulations in the country of origin; and
tax identification number (NPWP) for Indonesian legal entities or equivalent documents valid for foreign legal entities;
b. the latest audited annual financial report;
c. a completed resume of the Board of Directors and Board of Commissioners members using Format 6 as contained in Appendix I which is an inseparable part of this OJK Circular, accompanied by:
personal data:
a) photocopy of identity documents in the form of an identity card (KTP) or valid passport; b) tax identification number (NPWP) for Indonesian citizens or equivalent documents valid for foreign citizens; and c) 2 (two) sheets of the latest color passport photos with size 4x6 cm; and
skills mastered and foreign language proficiency; and
d. a statement letter from the legal entity represented by the Board of Directors that has been filled out completely and affixed with sufficient stamp duty using Format 5 letter A as contained in Appendix I which is an inseparable part of this OJK Circular, which contains a statement of meeting integrity aspects, financial feasibility aspects, and not undergoing a competence and integrity assessment process at a financial service institution.

Completeness of administrative requirement documents as referred to in letter A item 4 for parties nominated as Legal Entity Insurance Company Controllers who are not shareholders, namely:
a. a completed list using Format 4 letter D as contained in Appendix I which is an inseparable part of this OJK Circular, which contains legal entity data, accompanied by:

photocopy of establishment documents in the form of a legal entity deed, including the latest amended articles of association approved by the competent authority or equivalent documents for foreign business entities according to regulations in the country of origin; and
tax identification number (NPWP) for Indonesian legal entities or equivalent documents valid for foreign legal entities;
b. a completed resume of the Board of Directors and Board of Commissioners members using Format 6 as contained in Appendix I which is an inseparable part of this OJK Circular, accompanied by:
personal data:
a) photocopy of identity documents in the form of an identity card (KTP) or valid passport; b) tax identification number (NPWP) for Indonesian citizens or equivalent documents valid for foreign citizens; and c) 2 (two) sheets of the latest color passport photos with size 4x6 cm; and
skills mastered and foreign language proficiency; and
c. a statement letter from the legal entity represented by the Board of Directors that has been filled out completely and affixed with sufficient stamp duty using Format 5 letter B as contained in Appendix I which is an inseparable part of this OJK Circular, which contains a statement of meeting integrity aspects, financial reputation aspects, and not undergoing a competence and integrity assessment process at a financial service institution.

Completeness of administrative requirement documents as referred to in letter A item 4 for parties nominated as Board of Directors members, executive officers, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, and Company Actuaries, namely:
a. a completed resume using Format 6 as contained in Appendix I which is an inseparable part of this OJK Circular, accompanied by:

personal data:
a) photocopy of identity documents in the form of an identity card (KTP) or valid passport; b) tax identification number (NPWP) for Indonesian citizens or equivalent documents valid for foreign citizens; and c) 2 (two) sheets of the latest color passport photos with size 4x6 cm;
formal education history documents:
a) photocopy of the latest diploma; and b) photocopy of expertise certificates (if any);
training and seminar documents attended (if any):
a) photocopy of graduation certificates or attendance certificates for training attended; and b) photocopy of attendance certificates for seminars attended;
work history documents:
a) work experience certificate; b) recommendation letter and/or letter of intent to resign from the previous LJKNB; c) recommendation from the National Sharia Board of the Indonesian Ulema Council (DSN-MUI) specifically for members of the Sharia Supervisory Board; and d) letter of no sanctions from the association (for Company Actuaries);
awards relevant to the financial industry achieved (if any); and
skills mastered and foreign language proficiency;
b. a statement letter that has been filled out completely, affixed with sufficient stamp duty, and signed by the nominated party as Board of Directors members, executive officers, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, and Company Actuaries using Format 5 letter C as contained in Appendix I which is an inseparable part of this OJK Circular, which contains a statement of meeting integrity aspects, financial reputation aspects, and not undergoing a competence and integrity assessment process at a financial service institution;
c. a writing regarding the plans to be carried out after being appointed to the targeted position, including:
vision and mission;
programs to be carried out during the term of office; and
targets to be achieved during the term of office; and
d. a statement letter of non-affiliation with the LJKNB, for prospective independent commissioners.
C. Administrative Requirements Fulfillment List

Before the LJKNB submits administrative requirement documents to the OJK in the nomination application, the LJKNB must first fill out the administrative requirements fulfillment list as referred to in letter A item 5.
The LJKNB must submit the results of the administrative requirements fulfillment list as referred to in item 1 to the OJK, signed by:
a. prospective owners, founders, or authorized LJKNB officials in the case of an LJKNB establishment license application; or b. authorized LJKNB officials in the case where the LJKNB has obtained a business license.
Submission of the results of the administrative requirements fulfillment list as referred to in item 2 is accompanied by an explanation stating that the submitted administrative requirement documents:
a. are complete and correct in terms of quantity, format, and substance; and b. state that the administrative requirement documents in the form of "statements" and "lists" are true and have been filled out and signed by the proposed candidates.
The administrative requirements fulfillment list as referred to in item 2 is submitted together with the submission of the administrative requirement documents of the proposed candidates.
D. Self-Assessment
Self-assessment of the Board of Directors members, executive officers, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, and Company Actuaries as referred to in letter A item 6 is conducted by the LJKNB before submission to the relevant OJK, concerning:
a. assessment of the fulfillment of integrity, financial reputation, and competence requirements for prospective Board of Directors members, executive officers, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, and Company Actuaries to be proposed. The assessment covers at least the assessment of track record including sanctions previously given by the LJKNB, educational background both formal and informal, and achievements achieved in the implementation of duties, the candidate's ability to hold the position to be held, concurrent positions, and ownership of credit and/or non-performing financing; and b. fulfillment of requirements according to statutory regulations.
The results of the self-assessment as referred to in item 1 are submitted to the OJK at the time of the application submission.
E. Submission Address
Application letters to obtain approval to become a Key Party along with administrative requirement documents as referred to in letter A items 3 and 4, and the results of self-assessment as referred to in letter D item 2 are submitted completely to the OJK.
Submission of application letters to obtain approval to become a Key Party along with administrative requirement documents, and the results of self-assessment as referred to in item 1 are addressed to the following addresses:
a. for insurance brokerage companies, reinsurance brokerage companies, and insurance loss assessment companies:
Head of Executive Supervisor for Insurance, Pensions, Financing Institutions, and Other Financial Service Institutions Financial Services Authority Attention: Director of IKNB Support Services I Merdeka Tower Building Jl. Budi Kemuliaan I Number 2 Jakarta 10110 b. for LJKNB other than insurance brokerage companies, reinsurance brokerage companies, and insurance loss assessment companies:
Head of Executive Supervisor for Insurance, Pensions, Financing Institutions, and Other Financial Service Institutions Financial Services Authority Attention: Director of IKNB Institutions and Products I Merdeka Tower Building Jl. Budi Kemuliaan I Number 2 Jakarta 10110
c. for LJKNB conducting business activities based on Sharia principles:
Head of Executive Supervisor for Insurance, Pensions, Financing Institutions, and Other Financial Service Institutions Financial Services Authority Attention: Director of Sharia IKNB Merdeka Tower Building Jl. Budi Kemuliaan I Number 2 Jakarta 10110
In the event of a change in the OJK office address for the submission of application letters to obtain approval to become a Key Party along with administrative requirement documents, and the results of self-assessment as referred to in item 2, the OJK will convey notification regarding the address change via letter or announcement.

V. PROCEDURE FOR IMPLEMENTATION OF COMPETENCE AND INTEGRITY ASSESSMENT
A. Administrative Assessment

The implementation of competence and integrity assessment for prospective PSP and/or Insurance Company Controllers includes stages:
a. administrative assessment; and b. determination of the results of the competence and integrity assessment.
The implementation of competence and integrity assessment for prospective Board of Directors members, executive officers, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, and/or Company Actuaries includes stages:
a. administrative assessment; and b. determination of the results of the competence and integrity assessment.
Administrative assessment is conducted to assess whether the application to obtain approval to become a Key Party has met integrity, financial reputation or financial feasibility, and/or competence requirements.
In the event that the administrative requirement documents received by the OJK are incomplete, the OJK requests the LJKNB to complete the administrative requirement documents as referred to in Roman IV letter B within a maximum period of 20 (twenty) working days.
In the event that the LJKNB does not submit the missing administrative requirement documents within a maximum period of 20 (twenty) working days as referred to in item 4, the LJKNB is deemed to have cancelled the application to obtain approval to become a Key Party.
The OJK issues a rejection letter for the application letter to obtain approval to become a Key Party submitted by the LJKNB if the administrative requirement documents are declared incorrect.
In the context of administrative assessment in the implementation of competence and integrity assessment as referred to in item 3, the OJK may request information and/or recommendation letters regarding Key Parties from other competent parties.
B. Presentation or Exposition by Prospective PSP or Insurance Company Controller
In the context of administrative assessment for prospective PSP or prospective Insurance Company Controllers, the relevant parties must conduct a presentation or exposition.
In the event that the prospective PSP or prospective Insurance Company Controller is the central government or local government, then the presentation or exposition as referred to in item 1 is conducted if deemed necessary.
The presentation or exposition must be conducted by the prospective PSP or prospective Insurance Company Controller in the context of administrative assessment as referred to in item 1, at least regarding:
a. the plans of the prospective PSP and prospective Insurance Company Controller regarding the development of the LJKNB to be owned and/or controlled for at least 3 (three) years since ownership; and b. the strategy of the prospective PSP and prospective Insurance Company Controller in the event that the LJKNB to be owned and/or controlled experiences financial difficulties.
The implementation of the exposition or presentation as referred to in item 1 is conducted through direct face-to-face meetings at the OJK office or other places determined by the OJK.
The OJK notifies the schedule for the implementation of the presentation or exposition as referred to in item 1 in writing to the LJKNB Board of Directors at the latest 10 (ten) working days after the competence and integrity assessment application as referred to in Roman IV letter A item 3 along with administrative requirement documents as referred to in Roman IV letter A item 4 is received completely by the OJK.
Prospective PSP or prospective Insurance Company Controllers who cannot attend the scheduled presentation or exposition as determined as referred to in item 5 must submit written notification accompanied by valid reasons to the OJK at the latest 1 (one) working day before the implementation of the competence and integrity assessment.
Based on the written notification as referred to in item 6, the OJK may provide 1 (one) opportunity for presentation or exposition and convey a new schedule for the implementation of the presentation or exposition to the prospective PSP or prospective Insurance Company Controller.
In the event that based on the written notification as referred to in item 6 the OJK does not provide an opportunity for presentation or exposition to the prospective PSP or prospective Insurance Company Controller or the relevant party does not attend the implementation of the presentation or exposition according to the new schedule without notification, the OJK cancels the application to obtain approval to become a Key Party for that prospective PSP or prospective Insurance Company Controller.
The OJK conveys notification of the cancellation of the application for prospective PSP or prospective Insurance Company Controllers if the reason for absence as referred to in item 6 is not accepted or the relevant party does not submit notification regarding their absence in the presentation or exposition as referred to in item 6.
In the event that a candidate Key Party or candidate Controlling Party of an Insurance Company is absent from the presentation or briefing without prior notification, or with notification but where the reason for absence is not accepted by the OJK, the OJK determines that the individual is not approved to become a Key Party or Controlling Party of an Insurance Company.
The presentation or briefing referred to in item 1 shall be conducted in the Indonesian language.
Candidate Key Parties or candidate Controlling Parties of Insurance Companies who are unable to speak Indonesian must provide their own interpreter services during the presentation or briefing.
In the event that a candidate Key Party or candidate Controlling Party of an Insurance Company is a legal entity, the presentation or briefing referred to in item 1 may be conducted by the directors of such legal entity, the directors of another legal entity within its business group, or the ultimate shareholders.
In the event that the directors of another legal entity within its business group or the ultimate shareholders referred to in item 13 are unable to attend, they may be represented by another official one (1) level below the directors based on appointment by power of attorney.

C. Clarification of Candidate Members of the Board of Directors, Acting Management, Members of the Board of Commissioners, Members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company

Based on the results of the administrative assessment conducted as referred to in letter A item 2 letter a, and information and/or recommendation letters obtained by the OJK from Key Parties from other authorized parties as referred to in letter A item 7, the OJK may determine that candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company require a clarification process, if:

a. there is negative information regarding the candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company;

b. the candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company do not yet have relevant experience in Non-Bank Financial Service Institutions (LJKNB) in Indonesia considering the position, size, complexity, and/or issues of the LJKNB where the individual will be nominated; and/or

c. the candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company have previously been determined not approved in prior nominations.

The provisions regarding the necessity of conducting clarification for Insurance Companies, Guarantee Institutions, Financing Companies, PMV, and Pawnshops based on the experience of candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company as referred to in item 1 letter b are implemented based on the criteria in Table 1 as contained in Appendix II, which is an integral part of this OJK Circular.
The provisions regarding the necessity of conducting clarification for Employer Pension Funds based on the experience of candidate members of the Board of Directors, candidate members of the Board of Commissioners, or candidate members of the Sharia Supervisory Board as referred to in item 1 letter b are implemented based on the criteria in Table 2 as contained in Appendix II, which is an integral part of this OJK Circular.
The provisions regarding the necessity of conducting clarification for Institutional Pension Funds based on the experience of candidate acting management or members of the Sharia Supervisory Board as referred to in item 1 letter b are implemented based on the criteria in Table 3 as contained in Appendix II, which is an integral part of this OJK Circular.
The OJK conducts clarification of candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company as referred to in item 1 to obtain explanations from the concerned parties regarding information obtained by the OJK or to assess the experience or expertise of the concerned parties.
Candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company must attend the clarification process as referred to in item 1 through direct face-to-face meetings at the OJK office or other locations designated by the OJK.
The OJK notifies the schedule for conducting the clarification as referred to in item 1 in writing to the Board of Directors of the LJKNB no later than 10 (ten) working days after the request for competence and fit and properness assessment as referred to in Section IV letter A item 3, along with the administrative requirement documents as referred to in Section IV letter A item 4, is received by the OJK in complete form.
Candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company who are unable to attend the scheduled clarification as determined as referred to in item 8 must submit written notification accompanied by valid reasons to the OJK no later than 1 (one) working day before the implementation of the competence and fit and properness assessment.
Based on the written notification as referred to in item 8, the OJK may grant 1 (one) opportunity for clarification and convey a new schedule for conducting the clarification to the candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company.
In the event that, based on the written notification as referred to in item 8, the OJK does not grant an opportunity for clarification to the candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company, or the concerned party is absent from the implementation of the clarification according to the new schedule without notification, the OJK cancels the implementation of the competence and fit and properness assessment for the concerned party.
The OJK conveys notification of the cancellation of the request to obtain approval to become a Key Party for candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company if the reason for absence as referred to in item 8 is not accepted or if the concerned party does not submit notification regarding their absence from the clarification as referred to in item 8.
In the event that candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company are absent from the implementation of the clarification without notification, or with notification but where the reason for absence is not accepted by the OJK, the OJK determines that the concerned party is not approved and declared not to meet the competence and fit and properness requirements.
The clarification as referred to in item 1 shall be conducted in the Indonesian language.
Candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company who are unable to speak Indonesian must provide their own interpreter services during the implementation of the clarification.

VI. CESSATION OF COMPETENCE AND FIT AND PROPERNESS ASSESSMENT

The OJK ceases the competence and fit and properness assessment of candidate Key Parties of LJKNB if the candidate is undergoing:

a. legal processes;

b. competence and fit and properness assessment processes at the OJK; and/or

c. re-assessment processes due to indications of integrity, financial viability, financial reputation, and/or competence issues at a financial service institution.

What is meant by undergoing legal processes as referred to in item 1 letter a is if the candidate Key Party is undergoing bankruptcy processes, investigation processes, or judicial processes (including appeals and cassation) in cases involving:

a. criminal offenses in the Financial Services Sector;

b. criminal offenses, namely criminal offenses contained in the Criminal Code (KUHP) and/or similar foreign criminal codes with a penalty of imprisonment of 1 (one) year or more; and/or

c. other criminal offenses with a penalty of imprisonment of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trafficking, terrorism, counterfeiting currency, tax offenses, forestry offenses, environmental offenses, and maritime and fisheries offenses.

What is meant by undergoing competence and fit and properness assessment processes at the OJK as referred to in item 1 letter b is if the candidate Key Party is submitting a request for competence and fit and properness assessment to the OJK as a candidate Key Party at a financial service institution.
The OJK ceases the competence and fit and properness assessment against candidate Key Parties undergoing competence and fit and properness assessment processes at the OJK as referred to in item 1 letter b for the most recent nomination submitted by the LJKNB to the OJK.
What is meant by undergoing re-assessment due to indications of integrity, financial viability, financial reputation, and/or competence issues at an LJKNB as referred to in item 1 letter c is if the candidate Key Party is in a re-assessment process due to indications of integrity, financial viability, financial reputation, and/or competence issues in their capacity as parties who own, manage, supervise, and/or have significant influence on the LJKNB.
The OJK notifies in writing the cessation of the competence and fit and properness assessment to the LJKNB that submitted the nomination.

VII. PROCEDURES FOR DETERMINING COMPETENCE AND FIT AND PROPERNESS ASSESSMENT RESULTS AND CONSEQUENCES

A. Classification of Assessment Results

The results of the competence and fit and properness assessment are classified into 2 (two) predicates as follows:

a. approved; or

b. not approved.

Candidate Key Parties who obtain the predicate of approved as referred to in item 1 letter a are declared to meet the requirements and obtain approval from the OJK to become Key Parties at the LJKNB that submitted the nomination.
Candidate Key Parties who obtain the predicate of not approved as referred to in item 1 letter b are declared not to meet the requirements and do not obtain approval from the OJK to become Key Parties at the LJKNB that submitted the nomination.

B. Determination and Submission of Competence and Fit and Properness Assessment Results

The OJK determines the results of the competence and fit and properness assessment against candidate Key Parties no later than 30 (thirty) working days after all application documents are received in complete form.
In the event that the competence and fit and properness assessment process for candidate Key Parties is conducted during the request for establishment, merger, and/or consolidation permits for LJKNB, the OJK provides the determination of the competence and fit and properness assessment results within the time period according to regulations governing the granting of establishment, merger, and/or consolidation permits for LJKNB.
What is meant by establishment permits as referred to in item 2 are:

a. approval of Pension Funds; or

b. business permits for Insurance Companies, Financing Companies, Guarantee Institutions, PMV, or Pawnshops.

The results of the competence and fit and properness assessment, in the form of the predicate of approved or the predicate of not approved for the request of candidate Key Parties as referred to in letter A item 1, are conveyed in writing to the LJKNB that submitted the nomination.
The OJK may notify the results of the competence and fit and properness assessment to interested parties in the implementation of the OJK's functions, duties, and authorities, or as required by legislation, including the government, shareholders of financial service institutions, or other parties deemed necessary by the OJK.

C. Consequences of Assessment Results

For candidate Key Parties and candidate Controlling Parties of Insurance Companies who are shareholders obtaining the predicate of approved as referred to in letter A item 1 letter a by the OJK, the concerned party may purchase shares of the LJKNB.
For candidate Key Parties and candidate Controlling Parties of Insurance Companies who are shareholders obtaining the predicate of not approved as referred to in letter A item 1 letter b by the OJK but who already hold shares in the LJKNB, then:

a. the concerned party is obligated to transfer their ownership of shares in the concerned LJKNB and not exercise Control; and

b. restrictions are placed on the shareholder rights of the concerned party in the LJKNB, namely shareholder rights are only recognized up to the amount of initial shares before the addition of shares that caused the concerned party to become a candidate Key Party and candidate Controlling Party of an Insurance Company who is a shareholder.

What is meant by transferring ownership of shares in the concerned LJKNB as referred to in item 2 letter a is transferring ownership of shares in the concerned LJKNB so that the concerned party no longer meets the criteria as a candidate Key Party and candidate Controlling Party of an Insurance Company who is a shareholder.
The transfer of share ownership as referred to in item 2 letter a must be conducted no later than 1 (one) year from the date of rejection by the OJK.
What is meant by shareholder rights as referred to in item 2 letter b includes, for example, the right to attend, calculation of quorum, casting votes in the General Meeting of Shareholders (GMS), and the right to receive distributed dividends.
In the event that candidate Key Parties and candidate Controlling Parties of Insurance Companies who are shareholders do not transfer share ownership within the time period as referred to in item 4, then the shareholder rights as referred to in item 5 for all shares owned by them are not recognized until the concerned party conducts the transfer of share ownership.
The OJK may determine parties who are not permitted to receive the transfer of shares as referred to in item 2 letter a.
Parties who are not permitted to receive the transfer of shares as referred to in item 7 are parties affiliated with the candidate Key Party and candidate Controlling Party of an Insurance Company who is a shareholder, consisting of:

a. parties having family relationships up to the second degree with the candidate Key Party and candidate Controlling Party of an Insurance Company who is a shareholder, including to their business group;

b. parties who are controllers of the candidate Key Party and candidate Controlling Party of an Insurance Company who is a shareholder;

c. parties where the candidate Key Party and candidate Controlling Party of an Insurance Company who is a shareholder acts as a controller; and

d. parties having financial interdependence with the candidate Key Party and candidate Controlling Party of an Insurance Company who is a shareholder.

What is meant by family relationships up to the second degree as referred to in item 8 letter a are vertical and horizontal relationships, including parents-in-law, children-in-law, and siblings-in-law, including:

a. biological/step/adopted parents;

b. biological/step/adopted siblings along with their spouses;

c. biological/step/adopted children;

d. biological/step/adopted grandparents;

e. biological/step/adopted grandchildren;

f. biological/step/adopted siblings of parents along with their spouses;

g. spouses;

h. parents-in-law;

i. siblings-in-law;

j. spouses of biological/step/adopted children;

k. grandparents of spouses;

l. spouses of biological/step/adopted grandchildren; and/or

m. biological/step/adopted siblings of spouses along with their spouses.

The LJKNB is obligated to report the transfer of share ownership as referred to in item 2 letter a to the OJK by referring to regulations governing the reporting of articles of association changes related to ownership changes applicable to the LJKNB.
In the event that the transfer of share ownership as referred to in item 2 letter a is conducted by transferring shares to parties not permitted to receive the transfer of shares as referred to in item 8, then:

a. such transfer is not considered as a transfer of ownership as referred to in item 2 letter a;

b. the LJKNB is prohibited from recording the party receiving the transfer in the LJKNB's shareholder list; and

c. the party receiving the transfer does not obtain their rights as a shareholder.

The OJK cancels the approval as referred to in letter A item 1 letter a, if after the approval is granted:

a. it is known that information or documents submitted in the competence and fit and properness assessment process are incorrect, thereby failing to meet the requirements; and/or

b. information obtained from other authorities causes the approved party to no longer meet the requirements.

For candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company who obtain the predicate of approved as referred to in letter A item 1 letter a by the OJK, they must be appointed to their positions according to the positions submitted at the time of the competence and fit and properness assessment request no later than 3 (three) months from the date the results of the competence and fit and properness assessment were determined.
In the event that after the time period as referred to in item 13 has passed, the Key Party who obtained the predicate of approved as referred to in letter A item 1 letter a by the OJK has not yet been appointed, the LJKNB that submitted the nomination must notify the OJK of the reasons for the non-appointment of the concerned Key Party no later than 10 (ten) working days from the time period as referred to in item 13.
The LJKNB is obligated to report the appointment of candidate members of the Board of Directors, acting management, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, or Actuaries of the Company as referred to in item 13 to the OJK by referring to regulations governing the reporting of Key Party changes related to management changes applicable to the LJKNB.
For candidate members of the Board of Directors, candidate members of the Board of Commissioners, and/or candidate members of the Sharia Supervisory Board who are not approved by the OJK as referred to in letter A item 1 letter b but who have already been appointed as members of the Board of Directors, members of the Board of Commissioners, or members of the Sharia Supervisory Board, the LJKNB is obligated to convene a GMS to cancel the appointment of the concerned party within a time period no later than 3 (three) months from the date the concerned party was declared not approved.
For candidate acting management, Internal Auditors, or Actuaries of the Company who are not approved by the OJK as referred to in letter A item 1 letter b but who have already been appointed as acting management, Internal Auditors, or Actuaries of the Company, the LJKNB must cancel the appointment of the concerned party within a time period no later than 3 (three) months from the date the concerned party was declared not approved.
The LJKNB is obligated to report the convening of the GMS to cancel the appointment of members of the Board of Directors, members of the Board of Commissioners, or members of the Sharia Supervisory Board as referred to in item 16, and the cancellation of the appointment of acting management, Internal Auditors, or Actuaries of the Company as referred to in item 17, to the OJK by referring to regulations governing the reporting of Key Party changes applicable to the LJKNB.

VIII. SANCTION MECHANISM

A. Sanction Provisions for Insurance Companies, Financing Companies, Guarantee Institutions, or PMV

Insurance Companies, Financing Companies, Guarantee Institutions, or PMV that violate provisions as regulated in Article 31 of OJK Regulation Number 27/POJK.03/2016 on Competence and Fit and Properness Assessment for Key Parties of Non-Bank Financial Service Institutions, are subject to progressive administrative sanctions in the form of:

a. written warnings;

b. restrictions on business activities for part or all business activities; or

c. revocation of business licenses.

In addition to the sanctions as referred to in item 1, the OJK may impose additional sanctions in the form of:

a. reduction of health level;

b. cancellation of competence and fit and properness assessment results;

c. orders for management replacement;

d. inclusion of management in the list of parties prohibited from becoming Key Parties; and/or

e. cancellation of approvals, registrations, and approvals.

Written warning sanctions as referred to in item 1 letter a are given in writing by the OJK to Insurance Companies, Financing Companies, Guarantee Institutions, or PMV up to 3 (three) times consecutively, with each validity period no longer than 60 (sixty) days.
In the event that before the validity period of the warning sanctions as referred to in item 3 expires, the Insurance Company, Financing Company, Guarantee Institution, or PMV has met the provisions as referred to in item 1, the OJK revokes the warning sanctions.
In the event that the validity period of the third warning sanction as referred to in item 3 expires and the Insurance Company, Financing Company, Guarantee Institution, or PMV still does not meet the provisions as referred to in item 1, the OJK imposes business activity restrictions for part or all business activities as referred to in item 1 letter b.
Business activity restrictions for part or all business activities as referred to in item 1 letter b are given in writing and are valid for a period of 6 (six) months from the date the business activity restriction letter is determined.
In the event that before the expiration of the time period for business activity restrictions for part or all business activities as referred to in item 6, the Insurance Company, Financing Company, Guarantee Institution, or PMV has met the provisions, the OJK revokes the business activity restriction sanctions for part or all business activities.
In the event that by the expiration of the time period for business activity restrictions for part or all business activities as referred to in item 6, the Insurance Company, Financing Company, Guarantee Institution, or PMV still does not meet the provisions, the OJK revokes the business licenses of the concerned Insurance Company, Financing Company, Guarantee Institution, or PMV.

B. Sanction Provisions for Pension Funds or Pawnshops

Pension Funds or Pawnshops that violate provisions as regulated in Article 31 of OJK Regulation Number 27/POJK.03/2016 on Competence and Fit and Properness Assessment for Key Parties of Non-Bank Financial Service Institutions are subject to

administrative sanctions consisting of:
a. a written warning; or b. a written order to replace the Board of Directors, acting members of the Board of Commissioners, and/or the Board of Commissioners.
2. The written warning sanction as referred to in paragraph 1 letter a is valid for a period of 60 (sixty) days from the date the written warning letter is issued.
3. In the event that before the expiration of the written warning period as referred to in paragraph 2, the Pension Fund or Pawnshop Company has fulfilled the provisions as referred to in paragraph 1, OJK revokes the warning sanction.
4. In the event that after being issued a written warning 3 (three) times consecutively, the Pension Fund or Pawnshop Company still fails to fulfill the provisions, OJK issues a written order to replace the Board of Directors, acting members of the Board of Commissioners, and/or the Board of Commissioners.

IX. CLOSING
The provisions in this OJK Circular shall take effect on the date of issuance.
Established in Jakarta on 30 August 2016

EXECUTIVE HEAD OF INSURANCE, PENSION FUND,
LENDING INSTITUTION, AND OTHER FINANCIAL SERVICE INSTITUTIONS SUPERVISOR FINANCIAL SERVICES AUTHORITY, signature FIRDAUS DJAELANI

Copy matches the original
Legal Director 1
Legal Department signature
Yuliana

APPENDIX I
FINANCIAL SERVICES AUTHORITY CIRCULAR LETTER
NUMBER 31 /SEOJK.05/2016
REGARDING
ASSESSMENT OF COMPETENCE AND FIT AND PROPERNESS FOR KEY PARTIES OF NON-BANK FINANCIAL SERVICE INSTITUTIONS

EXAMPLE FORMAT 1 APPLICATION LETTER TO OBTAIN
APPROVAL TO BECOME A KEY PARTY
Number : (date/month/year)
Attachments :
Subject : Application to Obtain Approval to Become Key Party PSP/Controlling Company of Insurance Company/Chief Director/Director/Acting Board Member/Chief Commissioner/Commissioner/Independent Commissioner/Member of Sharia Supervisory Board/Internal Auditor/Company Actuary*) To:
Executive Head of Insurance, Pension Fund,
Lending Institution, and Other Financial Service Institution Supervision, Financial Services Authority u.p. Director of Supporting Services IKNB/Director of Institutions and Products IKNB/ Director of Sharia IKNB*) Menara Merdeka Building Jl. Budi Kemuliaan I No. 2 Jakarta 10110

Hereby we apply for approval to become a Key Party for:

Name : ........................................................
Position : As PSP/Controlling Company of Insurance Company/Chief Director/Director/Acting Board Member/Chief Commissioner/Commissioner/Independent Commissioner/Member of Sharia Supervisory Board/Internal Auditor/Company Actuary*)
Name : ........................................................
Position : As PSP/Controlling Company of Insurance Company/Chief Director/Director/Acting Board Member/Chief Commissioner/Commissioner/Independent Commissioner/Member of Sharia Supervisory Board/Internal Auditor/Company Actuary*)
... etc :
To complete the aforementioned application, we enclose the following administrative requirement documents:
questionnaire form);
curriculum vitae list;
photocopy of identity documents in the form of an identity card (KTP) or valid passport;
tax identification number (NPWP) for Indonesian citizens/Indonesian legal entities or equivalent valid documents for foreign citizens/foreign legal entities;
2 (two) sheets of recent color passport photos with size 4x6 cm;
photocopy of establishment documents in the form of a deed of establishment, including the latest amended articles of association approved by the competent authority or equivalent documents for foreign business entities in accordance with the regulations in the country of origin*);
statement letter meeting aspects of integrity, financial reputation, or financial feasibility, and not currently undergoing a competence and fit and properness assessment at another financial service institution;
formal education history documents);
training and seminar documents previously attended (if any));
letter of work experience);
recommendation letter and/or letter of resignation from the previous LJKNB);
recommendation from the National Sharia Council of the Indonesian Ulema Council (DSN-MUI) specifically for members of the Sharia Supervisory Board;
letter of no sanctions from the relevant association specifically for Company Actuaries;
relevant awards in the financial industry previously achieved (if any));
skills mastered and foreign language proficiency, except for candidate PSP or Controlling Company of Insurance Company individuals;
the latest audited annual financial report);
writing regarding plans to be carried out after appointment to the targeted position); and
letter of non-affiliation with LJKNB, for independent commissioner candidates.

We also enclose the list of fulfillment of administrative requirements as referred to in Format 2 of Appendix I of this SEOJK.
We would like to inform that for reporting purposes, you may contact Mr./Ms. ... via email ... or phone number ...

This application is submitted, thank you for your attention, Mr./Madam.) Owner/Founder/Board of Directors/Board of Commissioners/Other party appointed by GMS) Insurance Company/Pension Fund/Lending Company/Guarantee Institution/PMV/Pawnshop Company*)
................
………………………………
*) strike out what is not necessary
) this requirement is submitted for the application of candidate PSP and/or candidate Controlling Company of Insurance Company *) this requirement is submitted for the application of candidate PSP in the form of a legal entity and/or candidate Controlling Company of Insurance Company in the form of a legal entity ) this requirement is submitted for the application of candidate members of the Board of Directors, acting board members, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, and Company Actuaries

EXAMPLE FORMAT 2 LIST OF FULFILLMENT OF ADMINISTRATIVE REQUIREMENT DOCUMENTS A. LIST OF FULFILLMENT OF ADMINISTRATIVE REQUIREMENT DOCUMENTS FOR INDIVIDUAL PSP AND/OR INDIVIDUAL CONTROLLING COMPANY OF INSURANCE COMPANY

Company Name :
Company Type :
Application Letter Number :
Application Letter Date :
The company submits the following individual names to be proposed as candidate PSP or Controlling Company of Insurance Company*):
No Name of Candidate PSP/Controlling Company of Insurance Company*) Residence Ownership Percentage Brief description of the background of the application to obtain approval to become a Key Party : Contact Person (Name, Phone Number, e-mail) : No Description of Document Substantive Check Yes No

Company Application Letter
Is the application letter signed by the candidate owner/founder/Board of Directors/Board of Commissioners/other party appointed by GMS?
Has the appropriate format been used as per Format 1 in Appendix I of this SEOJK?
Curriculum Vitae List
Is the curriculum vitae list in accordance with Format 6 in Appendix I of this SEOJK?
Has it been attached with a photocopy of a valid KTP/Passport?
List of Fulfillment of Administrative Requirement Documents Application to Obtain Approval to Become a Key Party for Individual PSP and/or Individual Controlling Company of Insurance Company*)

No Description of Document Substantive Check Yes No Curriculum Vitae List Has it been attached with a photocopy of NPWP for Indonesian citizens or equivalent documents for foreign citizens?
Has it been attached with 2 (two) sheets of recent color passport photos with size 4x6 cm?
3. Statement Letter
Is the statement letter from the individual PSP and/or Controlling Company of Insurance Company in accordance with Format 5 letter A in Appendix I of this SEOJK?
Signature above stamp
We declare that the above entries are in accordance with the actual documents and if there are discrepancies, corrections will be made.
Owner/Founder/Official of LJKNB with authority Insurance Company/Pension Fund/Lending Company/Guarantee Institution/PMV/Pawnshop Company*)
................
………………………………
*) strike out what is not necessary

B. LIST OF FULFILLMENT OF ADMINISTRATIVE REQUIREMENT DOCUMENTS FOR LEGAL ENTITY PSP AND/OR LEGAL ENTITY CONTROLLING COMPANY OF INSURANCE COMPANY THAT ARE SHAREHOLDERS

Company Name :
Company Type :
Application Letter Number :
Application Letter Date :
The company submits the following legal entity to be proposed as candidate corporate PSP/Controlling Company of Insurance Company*):
No Company Name Name of Representative Company Position of Key Party Representative Residence Ownership Percentage Brief description of the background of the application to obtain approval to become a Key Party : Contact Person (Name, Phone Number, e-mail) : No Description of Document Substantive Check Yes No

Company Application Letter
Is the application letter signed by the candidate owner/founder/Board of Directors/Board of Commissioners/other party appointed by GMS*)?
Has the appropriate format been used as per Format 1 in Appendix I of this SEOJK?
Company Representative
Is the legal entity/business group of the candidate PSP/Controlling Company of Insurance Company that is a shareholder*) represented by the Board of Directors/official at the Director level?
Has the company questionnaire form used the appropriate format as per Format 4 in Appendix I of this SEOJK?
Has it been attached with a photocopy of establishment documents in the form of a deed of establishment or equivalent documents for foreign business entities in accordance with the regulations in the country of origin? List of Fulfillment of Administrative Requirement Documents Application to Obtain Approval to Become a Key Party for Legal Entity PSP and/or Legal Entity Controlling Company of Insurance Company that are Shareholders*)

No Description of Document Substantive Check Yes No Company Representative Has it been attached with a photocopy of NPWP for Indonesian legal entities or equivalent documents for foreign legal entities?
3. Curriculum Vitae List
Is the curriculum vitae list of the Board of Directors members and Board of Commissioners members in accordance with Format 6 in Appendix I of this SEOJK?
4. Annual Financial Report
Has it been attached with the latest audited annual financial report?
5. Statement Letter
Is the statement letter from the Board of Directors or equivalent official representing the legal entity/PSP/Controlling Company of Insurance Company that is a shareholder*) in accordance with Format 5 letter A in Appendix I of this SEOJK? Signature above stamp We declare that the above entries are in accordance with the actual documents and if there are discrepancies, corrections will be made. Owner/Founder/Official of LJKNB with authority Insurance Company/Pension Fund/Lending Company/Guarantee Institution/PMV/Pawnshop Company*)
................
………………………………
*) strike out what is not necessary

C. LIST OF FULFILLMENT OF ADMINISTRATIVE REQUIREMENT DOCUMENTS
FOR LEGAL ENTITY CONTROLLING COMPANY OF INSURANCE COMPANY THAT IS NOT A SHAREHOLDER

Company Name :
Company Type :
Application Letter Number :
Application Letter Date :
The company submits the following legal entity to be proposed as candidate Controlling Company of Insurance Company:
No Company Name Name of Representative Company Position of Key Party Representative Residence Brief description of the background of the application to obtain approval to become a Key Party : Contact Person (Name, Phone Number, e-mail) : No Description of Document Substantive Check Yes No

Company Application Letter
Is the application letter signed by the candidate owner/founder/Board of Directors/Board of Commissioners/other party appointed by GMS*?
Has the appropriate format been used as per Format 1 in Appendix I of this SEOJK?
Company Representative
Is the legal entity/business group of the candidate Controlling Company of Insurance Company represented by the Board of Directors/official at the Director level?
Has the company questionnaire form used the appropriate format as per Format 4 in Appendix I of this SEOJK?
Has it been attached with a photocopy of establishment documents in the form of a deed of establishment or equivalent documents for foreign business entities in accordance with the regulations in the country of origin? Has it been attached with a photocopy of NPWP for Indonesian legal entities or equivalent documents for foreign legal entities? List of Fulfillment of Administrative Requirement Documents Application to Obtain Approval to Become a Key Party for Legal Entity Controlling Company of Insurance Company that is Not a Shareholder *)

No Description of Document Substantive Check Yes No
3. Curriculum Vitae List
Is the curriculum vitae list of the Board of Directors members and Board of Commissioners members in accordance with Format 6 in Appendix I of this SEOJK?
4. Statement Letter
Is the statement letter from the Board of Directors or equivalent official representing the legal entity Controlling Company of Insurance Company in accordance with Format 5 letter B in Appendix I of this SEOJK? Signature above stamp We declare that the above entries are in accordance with the actual documents and if there are discrepancies, corrections will be made. Owner/Founder/Official of LJKNB with authority Insurance Company/Pension Fund/Lending Company/Guarantee Institution/PMV/Pawnshop Company*)
................
………………………………
*) strike out what is not necessary

List of Fulfillment of Administrative Requirement Documents Application to Obtain Approval to Become a Key Party for Members of the Board of Directors/Acting Board Members/Board of Commissioners/Board of Sharia Supervisory Board/Internal Auditors/Company Actuaries D. LIST OF FULFILLMENT OF ADMINISTRATIVE REQUIREMENT DOCUMENTS FOR MEMBERS OF THE BOARD OF DIRECTORS/ACTING BOARD MEMBERS/BOARD OF COMMISSIONERS/BOARD OF SHARIA SUPERVISORY BOARD/INTERNAL AUDITORS/COMPANY ACTUARIES Company Name :
Company Type :
Reporting Letter Number :
Reporting Letter Date :
The company submits the following individual names to be proposed as candidate corporate Key Party:
No Name Position
Brief description of the background of the application for change Board of Directors/Acting Board Members/Board of Commissioners/Sharia Supervisory Board/Internal Auditors/Company Actuaries*) : Reason for candidacy :
Name of the replaced official :
Reason for replacement of the previous position :
Term of office :
Contact Person (Name, Phone Number, e-mail)
: No Description of Document Substantive Check Yes No

Company Application Letter
Is the application letter signed by the candidate owner/founder/Board of Directors/Board of Commissioners/other party appointed by GMS*?
Has the appropriate format been used as per Format 1 in Appendix I of this SEOJK?
Curriculum Vitae List
Is the curriculum vitae list in accordance with Format 6 in Appendix I of this SEOJK?
Has it been attached with a photocopy of a valid KTP/Passport?
Has it been attached with a photocopy of NPWP for Indonesian citizens or equivalent documents for foreign citizens?
Has it been attached with 2 (two) sheets of recent color passport photos with size 4x6 cm?

No DESCRIPTION of Document Substantive Check Yes No Curriculum Vitae List Has it been attached with formal education history documents in the form of photocopies of the latest diploma and skill certificates (if any)? Has it been attached with training and seminar documents previously attended (if any)? Has it been attached with a letter of work experience? Has it been attached with a recommendation letter and/or letter of resignation from the previous LJKNB? Has it been attached with a recommendation from the National Sharia Council of the Indonesian Ulema Council (DSN-MUI), specifically for members of the Sharia Supervisory Board? Has it been attached with a letter of no sanctions from the association, specifically for Company Actuaries? Has it been attached with relevant awards in the financial industry previously achieved (if any)?
3. Statement Letter
Is the statement letter from the candidate as a member of the Board of Directors/acting board members/Board of Commissioners/Board of Sharia Supervisory Board/Internal Auditor/Company Actuary*) in accordance with Format 5 letter C in Appendix I of this SEOJK? Signature above stamp. Has it been attached with a writing regarding plans to be carried out after appointment to the targeted position? Has it been attached with a letter of non-affiliation with LJKNB, for independent commissioner candidates? Signature above stamp. We declare that the above entries are in accordance with the actual documents and if there are discrepancies, corrections will be made. Owner/Founder/Official of LJKNB with authority Insurance Company/Pension Fund/Lending Company/Guarantee Institution/PMV/Pawnshop Company*)
................
………………………………
*) strike out what is not necessary

EXAMPLE FORMAT 3 SELF-ASSESSMENT FOR
MEMBERS OF THE BOARD OF DIRECTORS/ACTING BOARD MEMBERS/BOARD OF COMMISSIONERS/BOARD OF SHARIA SUPERVISORY BOARD/INTERNAL AUDITORS/COMPANY ACTUARIES A. SELF-ASSESSMENT INTEGRITY REQUIREMENTS I INTEGRITY REQUIREMENTS YES NO DESCRIPTION A. Capable of performing legal acts B. Possessing good ethics and morals

Never committed a criminal offense in the financial service sector whose sentence has been fully served within the last 20 (twenty) years before candidacy.
Never committed a felony, i.e., a criminal offense listed in the Criminal Code (KUHP) and/or similar KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentence has been fully served within the last 10 (ten) years before candidacy.
Never committed other criminal offenses with a prison sentence threat of 1 (one) year or more, whose sentence has been fully served within the last 20 (twenty) years before candidacy.
C. Committed to complying with laws and regulations and supporting OJK policies
Never violated prudential principles in the financial service sector.
Never violated laws and regulations in the financial service sector.
D. Committed to the development of healthy LJKNB
Never violated commitments agreed upon with the supervising and supervisory agency of LJKNB.

I INTEGRITY REQUIREMENTS YES NO DESCRIPTION

Committed to not committing and/or repeating acts and/or actions that cause the person to be listed as a party prohibited from being a Key Party, for candidates who have previously been listed as parties prohibited from being Key Party.
Never committed acts that provide unjust benefits to shareholders, Key Parties, employees, and/or other parties that can harm or reduce the rights of creditors, debtors, policyholders, insured parties, participants, guarantors, and/or other consumers.
Never committed acts inconsistent with or beyond their authority.
Never declared incapable of exercising their authority.
E. Not included as a party prohibited from becoming a Key Party

B. SELF-ASSESSMENT FINANCIAL REPUTATION REQUIREMENTS II FINANCIAL REPUTATION REQUIREMENTS YES NO DESCRIPTION

Does not have non-performing loans and/or financing.
Never declared bankrupt and/or never been a shareholder, Controlling Company of Insurance Company that is not a shareholder, Board of Directors member, or Board of Commissioners member declared guilty causing a company to be declared bankrupt within the last 5 (five) years before candidacy.

C. SELF-ASSESSMENT COMPETENCE REQUIREMENTS
COMPETENCE REQUIREMENTS
ASSESSMENT SCALE
Description Poor Very Poor Fair Good Very Good A. Knowledge and strategic management ability

Adequate and relevant knowledge for their position
a. Knowledge regarding organizational structure, management, job descriptions, and responsibilities according to position. b. Potential ability to analyze business processes.
c. Ability to lead an organization to achieve organizational goals, specifically for Board of Directors members.
d. Ability to manage human resources to achieve organizational goals, specifically for Board of Directors members. e. Basic supervision knowledge including internal control, specifically for Board of Commissioners members and Sharia Supervisory Board members. f. Basic knowledge related to leadership and conflict management, specifically for Board of Commissioners members and Sharia Supervisory Board members.

COMPETENCE REQUIREMENTS
ASSESSMENT SCALE
Description Poor Very Poor Fair Good Very Good g. Ability to evaluate company obligations or other technical actuarial aspects.
2. Understanding of laws and regulations
a. Understanding of laws and regulations in the financial service sector, prioritizing laws and regulations in the relevant industry. b. Basic understanding of other relevant laws and regulations, including understanding of laws and regulations regarding limited liability companies, OJK, bankruptcy, and money laundering criminal offenses and their implementing regulations.
3. Ability to perform strategic management in the context of healthy business development
a. Ability to formulate the vision and mission of the company to be led, specifically for Board of Directors members. b. Ability to analyze the company's situation.
c. Ability to analyze the development of the company's internal conditions.

COMPETENCE REQUIREMENTS
ASSESSMENT SCALE
Description Poor Very Poor Fair Good Very Good d. Ability to set targets to be achieved regarding the position held, specifically for Board of Directors members. e. Ability to design short, medium, and long-term strategies to achieve company objectives, specifically for Board of Directors members. f. Ability to analyze Board of Directors policies, specifically for Board of Commissioners members, Sharia Supervisory Board members, and Internal Auditors.

COMPETENCE REQUIREMENTS
ASSESSMENT SCALE
Description Not Yes
B. Experience in LJKNB and/or other fields relevant to their position Company Name : ...
Position : ...
Length of Position : ...
C. Expertise in LJKNB and/or other fields relevant to their position on LJKNB

EXAMPLE FORMAT 4 QUESTIONNAIRE

A. QUESTIONNAIRE FOR INDIVIDUAL KEY PARTIES/CONTROLLERS OF INSURANCE COMPANIES WHO ARE SHAREHOLDERS (Use a separate answer sheet if the available pages are insufficient)

Full name (including alias)
Other names (if any)
Place and date of birth
Address as per identity proof
Domicile/correspondence address (if different from address in item 4)
Your professional qualifications and their validity period (state fully)
Describe your profession/business activities and professional membership in the last two years. Include the company name, business field, position, professional association followed, and other relevant information.
Taxpayer Identification Number (NPWP) (for Indonesian citizens) or equivalent (for foreign citizens)
Describe the source of funds you will use to purchase shares of Non-Bank Financial Institutions (LJKNB), whether from:
- Personal wealth?
- Domestic loans?
- Foreign loans?
- Others?
  (Specify the source)
Describe companies you own (directly and indirectly/nominee)
Describe your obligations and responsibilities in that company
Are you currently a Key Party (PSP) at another LJKNB? Explain
Are you currently acting as a Key Party (PSP) at a non-LJKNB company?
Do other LJKNBs in question no. 17 and/or non-LJKNB companies in question no. 18 have a business relationship with the LJKNB whose shares you will purchase? Explain the type of business relationship in detail.
Do you intend to purchase the shares for the purpose of long-term investment (strategic partner)? If not, explain.
Do you currently hold shares in the LJKNB whose shares you will purchase (directly or indirectly)? Explain in detail with the composition.
How many shares will you purchase? What is the purchase value? What is your proportion of the total shares of the LJKNB? If you previously held shares in that LJKNB, what is the proportion if added to the number of shares you will purchase now?
How will you exercise your voting rights at the LJKNB, individually (you as an individual) or together with your business group/affiliates?
Have you ever been asked to resign, subjected to disciplinary actions/sanctions by a company, or subjected to a prohibition sanction from practicing your profession?
Have you ever been declared bankrupt by authorities in Indonesia or other countries? Explain specifically.
When you managed or owned a company, was that company ever declared bankrupt by authorities in Indonesia or other countries?
Have you, your company, or your business group ever been published or become the object of investigation by law enforcement authorities regarding criminal matters or misconduct in the financial sector?
Do you have a company whose license was frozen by authorities in Indonesia or other countries? Explain.
Do you or your company have a license to conduct business in Indonesia or other countries? If yes, explain the type of business field, duration, and location? If there are licenses that were frozen/cancelled, explain specifically.
Have you, your company, or your business group ever had a license application in the banking/financial sector rejected by authorities in Indonesia or other countries? Explain in detail.
Do you and/or your business group have plans to conduct other businesses in Indonesia or other countries that will affect the LJKNB whose shares you will purchase? Explain.
Have you, your company, or your business group ever failed to meet obligations to other parties under the law in Indonesia or other countries (e.g., tax payments, credit, etc.)? Explain.
Are your business activities or your company's/business group's activities currently or will be guaranteed by other parties? Explain.
Explain if there is other information that can provide data as consideration for OJK in processing your application.

The undersigned hereby states that:

I have understood the regulations concerning my rights and obligations as a Key Party (PSP)/Controller of an Insurance Company that is a shareholder*) as regulated in the applicable regulations.
The information provided above is true, complete, and accurate.
I will inform OJK within 30 (thirty) days if there are significant changes in information.
If the above statements/information are proven to be untrue, I am willing to resign from the position of PSP/Controller of an Insurance Company that is a shareholder*) of LJKNB within 30 (thirty) days.
*) strike out what is not necessary
(City), ...........…
(Signature above stamp duty is sufficient)
(Name/Position)

B. QUESTIONNAIRE FOR CONTROLLERS OF INDIVIDUAL INSURANCE COMPANIES WHO ARE NOT SHAREHOLDERS (Use a separate answer sheet if the available pages are insufficient)

Full name (including alias)
Other names (if any)
Place and date of birth
Address as per identity proof
Domicile/correspondence address (if different from address in item 4)
Your professional qualifications and their validity period. (state fully)
Describe your profession/business activities and professional membership in the last two years. Include the company name, business field, position, professional association followed, and other relevant information.
Taxpayer Identification Number (NPWP) (for Indonesian citizens) or equivalent (for foreign citizens)
Describe companies you own (directly and indirectly/nominee)
Describe your obligations and responsibilities in that company
Are you currently a Key Party (PSP) at another LJKNB? Explain
Are you currently acting as a Key Party (PSP) at a non-LJKNB company?
How will you exercise your voting rights at the LJKNB, individually (you as an individual) or together with your business group/affiliates?
Have you ever been asked to resign, subjected to disciplinary actions/sanctions by a company, or subjected to a prohibition sanction from practicing your profession?
Have you ever been declared bankrupt by authorities in Indonesia or other countries? Explain specifically.
When you managed or owned a company, was that company ever declared bankrupt by authorities in Indonesia or other countries?
Have you, your company, or your business group ever been published or become the object of investigation by law enforcement authorities regarding criminal matters or misconduct in the financial sector?
Do you have a company whose license was frozen by authorities in Indonesia or other countries? Explain.
Do you or your company have a license to conduct business in Indonesia or other countries? If yes, explain the type of business field, duration, and location? If there are licenses that were frozen/cancelled, explain specifically.
Have you, your company, or your business group ever had a license application in the banking/financial sector rejected by authorities in Indonesia or other countries? Explain in detail.
Have you, your company, or your business group ever failed to meet obligations to other parties under the law in Indonesia or other countries (e.g., tax payments, credit, etc.)? Explain.
Are your business activities or your company's/business group's activities currently or will be guaranteed by other parties? Explain.
Explain if there is other information that can provide data as consideration for OJK in processing your application.

The undersigned hereby states that:

I have understood the regulations concerning my rights and obligations as a Controller of an Insurance Company that is not a shareholder as regulated in the applicable regulations.
The information provided above is true, complete, and accurate.
I will inform OJK within 30 (thirty) days if there are significant changes in information.
If the above statements/information are proven to be untrue, I am willing to resign from the position of Controller of an Insurance Company that is not a shareholder of LJKNB within 30 (thirty) days.
(City), ...........…
(Signature above stamp duty is sufficient)
(Name/Position)

C. QUESTIONNAIRE FOR LEGAL ENTITY KEY PARTIES/CONTROLLERS OF LEGAL ENTITY INSURANCE COMPANIES WHO ARE SHAREHOLDERS
(Use a separate answer sheet if the available pages are insufficient)

Company name and full address:
Place and date of company establishment:
Full name (representative of the company):
Position in the company:
Describe your obligations and responsibilities as the representative of the company:
Supervisory/Regulatory body of your company:
- Name of Institution :
- Address :
- Website :
  Is the supervisory authority of your company willing to accept the concept of consolidated supervision by OJK?
Main business of the company currently and according to the company's articles of association:
Is your company currently a Key Party (PSP) at another LJKNB?
Explain.
Is your company currently acting as a Key Party (PSP) at a non-LJKNB company?
Explain.
Does the company in question no. 8 have a business relationship with the LJKNB to be acquired or with the LJKNB in question no. 7?
Explain.
Does your company intend to become a controller/as a Key Party (PSP) for the purpose of long-term investment (strategic partner)?
If Yes, explain your program.
Does your company currently hold shares in the LJKNB to be acquired?
If Yes, explain the composition in detail in whose name, explain the reasons.
Describe in detail, the nominal amount/percentage of ownership to be acquired by your company and your business group.
Explain the use of your company's voting rights at the LJKNB to be acquired:
Is it used individually (your company independently) or together with your business group as a unity?
List the name and position of the "key person" in your company. Explain detailed information including nationality, academic and professional qualifications, and employment in the last five years.
Provide in detail the entire list of shareholders in your company and explain their Key Parties (PSPs).
Is your company currently controlling directly or indirectly the LJKNB to be acquired?
If Yes, explain.
Has your company ever been published or become the object of investigation by authorities in Indonesia or other countries in criminal cases or other misconduct in the financial sector?
If Yes, explain, including the final result of the resolution.
Is your company a controller of another company whose business license was ever revoked or recommended for revocation by authorities in Indonesia or other countries:
If Yes, explain.
Does your company or your business group have a license to conduct business in Indonesia or other countries and then the license was frozen/cancelled?
If Yes, explain.
Has your company or your business group ever had a license application in the banking/financial sector rejected by authorities in Indonesia or other countries?
If Yes, explain.
Do you and/or your business group have plans to conduct other businesses in Indonesia or other countries that will affect the LJKNB to be acquired?
If Yes, explain.
Has your company or your business group ever failed to meet obligations (tax payments, credit, etc.) to other parties under the law in Indonesia or other countries?
If Yes, explain.
Are the activities of your company/other companies in your business group currently or will be guaranteed by other parties?
If Yes, explain by whom and how that guarantee will be implemented.
Explain the source of funds that will be used by your company to acquire the LJKNB (answer must be accompanied by supporting documents).
Explain reasons/other information that can strengthen OJK's consideration in processing the application for the acquisition of LJKNB by your company (accompanied by supporting evidence).

The undersigned hereby states that:

I have understood the regulations concerning my rights and obligations as a Key Party (PSP)/Controller of an Insurance Company that is a shareholder*) as regulated in the applicable regulations.
The information provided above is true, complete, and accurate.
I will inform OJK within 30 (thirty) days if there are significant changes in information.
If the above statements/information are proven to be untrue, I am willing to resign from the position of PSP/Controller of an Insurance Company that is a shareholder*) of LJKNB within 30 (thirty) days.
(City), ..........................
(Signature above stamp duty is sufficient)
Name & Position: _________________________________________________ Name of Company Represented : _________________________________ Legal basis for representation : ___________________________________ *) strike out what is not necessary

D. QUESTIONNAIRE FOR CONTROLLERS OF LEGAL ENTITY INSURANCE COMPANIES WHO ARE NOT SHAREHOLDERS (Use a separate answer sheet if the available pages are insufficient)

Company name and full address:
Place and date of company establishment:
Full name (representative of the company):
Position in the company:
Describe your obligations and responsibilities as the representative of the company:
Supervisory/Regulatory body of your company:
- Name of Institution :
- Address :
- Website :
  Is the supervisory authority of your company willing to accept the concept of consolidated supervision by OJK?
Main business of the company currently and according to the company's articles of association:
Is your company currently a Key Party (PSP) at another LJKNB?
Explain.
Is your company currently acting as a Key Party (PSP) at a non-LJKNB company?
Explain.
Does the company in question no. 8 have a business relationship with the LJKNB to be acquired or with the LJKNB in question no. 7?
Explain.
List the name and position of the "key person" in your company. Explain detailed information including nationality, academic and professional qualifications, and employment in the last five years.
Provide in detail the entire list of shareholders in your company and explain their Key Parties (PSPs).
Has your company ever been published or become the object of investigation by authorities in Indonesia or other countries in criminal cases or other misconduct in the financial sector?
If Yes, explain, including the final result of the resolution.
Is your company a controller of another company whose business license was ever revoked or recommended for revocation by authorities in Indonesia or other countries:
If Yes, explain.
Does your company or your business group have a license to conduct business in Indonesia or other countries and then the license was frozen/cancelled?
If Yes, explain.
Has your company or your business group ever had a license application in the banking/financial sector rejected by authorities in Indonesia or other countries?
If Yes, explain.
Has your company or your business group ever failed to meet obligations (tax payments, credit, etc.) to other parties under the law in Indonesia or other countries?
If Yes, explain.
Are the activities of your company/other companies in your business group currently or will be guaranteed by other parties?
If Yes, explain by whom and how that guarantee will be implemented.

The undersigned hereby states that:

I have understood the regulations concerning my rights and obligations as a Controller of an Insurance Company that is not a shareholder as regulated in the applicable regulations.
The information provided above is true, complete, and accurate.
I will inform OJK within 30 (thirty) days if there are significant changes in information.
If the above statements/information are proven to be untrue, I am willing to resign from the position of Controller of an Insurance Company that is not a shareholder of LJKNB within 30 (thirty) days.
(City), ..........................
(Signature above stamp duty is sufficient)
Name & Position: _________________________________________________ Name of Company Represented : _________________________________ Legal basis for representation : ___________________________________

EXAMPLE FORMAT 5 STATEMENT LETTER

A. STATEMENT LETTER FOR KEY PARTIES/CONTROLLERS OF INSURANCE COMPANIES INDIVIDUALS/LEGAL ENTITIES WHO ARE SHAREHOLDERS STATEMENT LETTER (to be filled by prospective Key Parties/Controllers of Insurance Companies who are individual/legal entity shareholders*)

I, the undersigned:
Name : .....................................................................................
Address : .....................................................................................
Position : Key Party/Controller of an Insurance Company who is an individual/legal entity shareholder*) hereby state that I:

meet the integrity aspect, including:
a. have legal capacity to perform legal acts; b. have never been sentenced for proven criminal acts in the financial services sector, namely criminal acts at financial service institutions whose sentences have been completed within the last 20 (twenty) years before nomination;
c. have never been sentenced for proven criminal offenses, namely criminal acts listed in the Criminal Code (KUHP) and/or similar to the KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentences have been completed within the last 10 (ten) years before nomination;
d. have never been sentenced for proven other criminal acts with a prison sentence threat of 1 (one) year or more, including but not limited to corruption; money laundering; narcotics/psychotropics; smuggling; customs; excise; human trafficking; illegal arms trafficking; terrorism; counterfeiting money; in the field of taxation; in the field of forestry; in the field of environment; in the field of marine and fisheries whose sentences have been completed within the last 20 (twenty) years before nomination; e. have never violated prudential principles in the financial services sector; f. have never violated legislation in the financial services sector; g. have submitted the plan of the prospective Key Party and/or prospective Controller of an Insurance Company regarding the operational development of LJKNB; h. have never violated commitments agreed upon with the supervising and supervisory agencies of LJKNB;
i. have a commitment not to commit and/or repeat acts and/or actions that cause the person to be listed in the list of prohibited parties as Key Parties, for candidates who have previously been listed in the list of prohibited parties as Key Parties;
j. have never committed acts that provide unfair benefits to shareholders, Key Parties, employees, and/or other parties that can harm or reduce the rights of creditors, debtors, policyholders, insured parties, participants, guarantee recipients, and/or other consumers; k. have never committed acts that are not in accordance with their authority or beyond their authority;
l. have never been declared unable to exercise their authority; and
m. are not included as parties prohibited from becoming Key Parties.
meet the financial feasibility aspect, including:
a. have a financial reputation; b. have financial capacity that can support business development;
c. have a commitment to undertake necessary efforts if the company faces capital and liquidity difficulties.
are not currently undergoing a fit and proper assessment at a financial service institution.

This statement letter is made truthfully and if it turns out later that my statement is untrue, I am willing to be sued in court according to applicable laws.

(date/month/year)
(signature)
(full name)
*) strike out what is not necessary

B. STATEMENT LETTER FOR CONTROLLERS OF INDIVIDUAL/LEGAL ENTITY INSURANCE COMPANIES WHO ARE NOT SHAREHOLDERS STATEMENT LETTER (to be filled by prospective Controllers of Individual/Legal Entity Insurance Companies*) who are not shareholders)

I, the undersigned:
Name : .....................................................................................
Address : .....................................................................................
Position : As a Controller of an Individual/Legal Entity Insurance Company who is not a shareholder hereby state that I:

meet the integrity aspect, including:
a. have legal capacity to perform legal acts; b. have never been sentenced for proven criminal acts in the financial services sector, namely criminal acts at financial service institutions whose sentences have been completed within the last 20 (twenty) years before nomination;
c. have never been sentenced for proven criminal offenses, namely criminal acts listed in the Criminal Code (KUHP) and/or similar to the KUHP abroad with a prison sentence threat of 1 (one) year or more whose sentences have been completed within the last 10 (ten) years before nomination;
d. have never been sentenced for proven other criminal acts with a prison sentence threat of 1 (one) year or more, including but not limited to corruption; money laundering; narcotics/psychotropics; smuggling; customs; excise; human trafficking; illegal arms trafficking; terrorism; counterfeiting money; in the field of taxation; in the field of forestry; in the field of environment; in the field of marine and fisheries whose sentences have been completed within the last 20 (twenty) years before nomination; e. have never violated prudential principles in the financial services sector; f. have never violated legislation in the financial services sector; g. have submitted the plan of the prospective Controller of an Insurance Company regarding the operational development of LJKNB; h. have never violated commitments agreed upon with the supervising and supervisory agencies of LJKNB;
i. have a commitment not to commit and/or repeat acts and/or actions that cause the person to be listed in the list of prohibited parties as Key Parties, for candidates who have previously been listed in the list of prohibited parties as Key Parties;

j. never performed acts that provided unfair benefits to shareholders, Key Parties, employees, and/or other parties that could harm or reduce the rights of creditors, debtors, policyholders, insured parties, participants, guarantors, and/or other consumers;

k. never performed acts that were beyond their authority or outside their authority;

l. has never been declared incapable of exercising their authority; and

m. is not included as a party prohibited from becoming a Key Party.

meet the aspect of financial reputation, including:

a. do not have non-performing loans and/or financing; and

b. have never been declared bankrupt and have never been a shareholder, Controlling Party of an Insurance Company that is not a shareholder, member of the Board of Directors, or member of the Board of Commissioners, who was declared guilty of causing a company to be declared bankrupt within the last 5 (five) years before being nominated.

are not currently undergoing a competence and fit and properness assessment process at a financial service institution.

This statement of declaration is made truthfully, and if it is later found that my statement is not true, I am willing to be sued in court according to applicable laws.

(date/month/year)

(signature)

(full name)

*) strike out what is not necessary

C. STATEMENT LETTER FOR MEMBERS OF THE BOARD OF DIRECTORS/EXECUTIVE MANAGERS/MEMBERS OF THE BOARD OF COMMISSIONERS/MEMBERS OF THE SHARIA SUPERVISORY BOARD/INTERNAL AUDITORS/COMPANY ACTUARIES

STATEMENT OF DECLARATION

(to be filled by candidates for members of the Board of Directors, executive managers, members of the Board of Commissioners, members of the Sharia Supervisory Board, Internal Auditors, and Company Actuaries*)

I, the undersigned below:

Name : .....................................................................................

Address : .....................................................................................

Position : As President Director/Director/Acting Manager/President Commissioner/Commissioner/Member of the Sharia Supervisory Board/Internal Auditor/Company Actuary*)

hereby declare that I:

meet the aspect of integrity, including:

a. have the legal capacity to perform legal acts;

b. have never been sentenced for proven criminal offenses in the financial service sector, namely criminal offenses at financial service institutions where the sentence has been fully served within the last 20 (twenty) years before being nominated;

c. have never been sentenced for proven criminal acts, namely criminal acts stipulated in the Criminal Code (KUHP) and/or similar foreign criminal codes with a prison sentence threat of 1 (one) year or more where the sentence has been fully served within the last 10 (ten) years before being nominated;

d. have never been sentenced for proven other criminal acts with a prison sentence threat of 1 (one) year or more, including but not limited to: corruption; money laundering; narcotics/psychotropics; smuggling; customs; excise; human trafficking; illegal arms trade; terrorism; counterfeiting money; tax offenses; forestry; environmental protection; maritime and fisheries, where the sentence has been fully served within the last 20 (twenty) years before being nominated;

e. have never violated prudential principles in the financial service sector;

f. have never violated laws and regulations in the financial service sector;

g. have never violated commitments agreed upon with the supervising and supervisory agency of Non-Bank Financial Service Institutions (LJKNB);

h. have a commitment not to perform and/or repeat acts and/or actions that cause the person concerned to be listed as a party prohibited from being a Key Party, for candidates who have previously been listed as parties prohibited from being Key Parties;

i. never performed acts that provided unfair benefits to shareholders, Key Parties, employees, and/or other parties that could harm or reduce the rights of creditors, debtors, policyholders, insured parties, participants, guarantors, and/or other consumers;

j. never performed acts that were beyond their authority or outside their authority;

k. has never been declared incapable of exercising their authority; and

l. is not included as a party prohibited from becoming a Key Party.

meet the aspect of financial reputation, including:

a. do not have non-performing loans and/or financing; and

are not currently undergoing a competence and fit and properness assessment process at a financial service institution.

This statement of declaration is made truthfully, and if it is later found that my statement is not true, I am willing to be sued in court according to applicable laws.

(date/month/year)

(signature)

(full name)

*) strike out what is not necessary

D. STATEMENT LETTER FOR INDEPENDENT COMMISSIONERS

STATEMENT OF DECLARATION

(to be filled by independent commissioner candidates)

I, the undersigned below:

Name : .....................................................................................

Place, Date of Birth : .....................................................................................

Address : .....................................................................................

Position : Independent Commissioner Candidate .........................................
(to be filled with company name)

hereby declare that I:

Do not have an affiliation relationship with members of the Board of Directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, or shareholders of the same Non-Bank Financial Service Institution (LJKNB); and
Have never been a member of the Board of Directors, members of the Board of Commissioners, members of the Sharia Supervisory Board, or held a position 1 (one) level below the Board of Directors at the same LJKNB or another company having an affiliation relationship with the said LJKNB within the period according to applicable laws and regulations.

This statement of declaration is made truthfully, and if it is later found that my statement is not true, I am willing to resign as an Independent Commissioner of .................................. (to be filled with company name).

(date/month/year)

(signature)

(stamp duty)

...............................

(full name)

EXAMPLE FORMAT 6 RESUME LIST

RESUME LIST

I. Personal Data

Name :
Gender :
Place/Date of Birth :
Nationality :
Home Address :
Office Address :
ID Card/Passport Number :
Taxpayer Identification Number (NPWP) :
MUI Sharia Council Recommendation,
for DPS :
No ........................................................
Office/Mobile Phone :
Email :

II. Formal Education History

No. Year Institution Major/Program

From...to...
etc.

III. Training and Seminars Attended (if any)

No. Year Organizer Topic and Brief Description

From...to...
etc.

IV. Work History

No. Work History Job Description

Year .....................
PT ............................
(Position) .................
etc.

Color Photo
4x6 cm

V. Description of Relevant Awards in the Financial Industry Achieved (if any)

No. Type of Award Year Description
1.
2.

VI. Description of Mastered Skills and Foreign Language Proficiency

No. Type of Skill Proficiency Level Description 1.
2.

This Resume List is made truthfully.

(date/month/year)

(signature)

(full name)

*) strike out what is not necessary

) attached with proof of work experience letter

Established in Jakarta on 30 August 2016

EXECUTIVE HEAD OF SUPERVISOR
FOR INSURANCE, PENSION FUNDS,
FINANCING INSTITUTIONS, AND
OTHER FINANCIAL SERVICE INSTITUTIONS
FINANCIAL SERVICES AUTHORITY,

signed

FIRDAUS DJAELANI

Copy consistent with the original

Director of Law 1
Department of Law

signed

Yuliana

APPENDIX II
LETTER OF THE FINANCIAL SERVICES AUTHORITY
NUMBER 31 /SEOJK.05/2016
REGARDING
THE ASSESSMENT OF COMPETENCE AND FIT AND PROPERNESS FOR KEY PARTIES OF NON-BANK FINANCIAL SERVICE INSTITUTIONS

TABLE 1 CRITERIA FOR CANDIDATES FOR MEMBERS OF THE BOARD OF DIRECTORS/BOARD OF COMMISSIONERS/SHARIA SUPERVISORY BOARD/INTERNAL AUDITORS/COMPANY ACTUARIES REQUIRING CLARIFICATION PROCESS AT INSURANCE COMPANIES, GUARANTEE COMPANIES, FINANCING COMPANIES, PMV, AND PAWN COMPANIES

Experience	Position Held
Commissioner	President Commissioner

Notes:
Y = clarification needs to be conducted
N = clarification does not need to be conducted

Except for commissioners at Insurance Companies, Guarantee Companies, Financing Companies, PMV, and Pawn Companies who will serve as commissioners or independent commissioners at Insurance Companies, Guarantee Companies, Financing Companies, PMV, and Pawn Companies with larger size and complexity.
Except for directors at Insurance Companies, Guarantee Companies, Financing Companies, PMV, and Pawn Companies who will serve as president directors at Insurance Companies, Guarantee Companies, Financing Companies, PMV, and Pawn Companies with smaller size and complexity.
Except for directors or president directors at Insurance Companies, Guarantee Companies, Financing Companies, PMV, and Pawn Companies who will serve as directors or president directors at Insurance Companies, Guarantee Companies, Financing Companies, PMV, and Pawn Companies with larger size and complexity.
Except for officials 1 level below Directors at Insurance Companies, Guarantee Companies, Financing Companies, PMV, and Pawn Companies who will serve as commissioners, president commissioners, directors, or Internal Auditors at Insurance Companies, Guarantee Companies, Financing Companies, PMV, and Pawn Companies with larger size and complexity.

TABLE 2 CRITERIA FOR CANDIDATES FOR MEMBERS OF THE BOARD OF DIRECTORS/BOARD OF COMMISSIONERS/SHARIA SUPERVISORY BOARD AT EMPLOYER PENSION FUNDS

Experience	Position Held
Board of Commissioners	Board of Directors

Notes:
Y = clarification needs to be conducted
N = clarification does not need to be conducted

Except for the Board of Commissioners or Board of Directors at Employer Pension Funds with smaller size and complexity who will serve as the Board of Commissioners or Board of Directors at Employer Pension Funds with larger size and complexity.

TABLE 3 CRITERIA FOR CANDIDATES FOR EXECUTIVE MANAGERS/SHARIA SUPERVISORY BOARD AT FINANCIAL INSTITUTION PENSION FUNDS

Notes:
Y = clarification needs to be conducted
N = clarification does not need to be conducted

Except for executive managers at Financial Institution Pension Funds with smaller size and complexity who will serve as executive managers at Financial Institution Pension Funds with larger size and complexity.

Experience	Position Held
Executive Manager	DPS
Executive Manager	N
DPS	Y
No Experience	Y

Established in Jakarta on 30 August 2016

EXECUTIVE HEAD OF SUPERVISOR
FOR INSURANCE, PENSION FUNDS,
FINANCING INSTITUTIONS, AND
OTHER FINANCIAL SERVICE INSTITUTIONS
FINANCIAL SERVICES AUTHORITY,

signed

FIRDAUS DJAELANI

Copy consistent with the original

Director of Law 1
Department of Law

Yuliana

SEOJK Regarding the Assessment of Competence and Fit and Properness for Key Parties of Non-Bank Financial Service Institutions

Lineage: In force