SEOJK Regarding the Assessment of Competence and Propriety for Prospective Controlling Shareholders, Prospective Board of Directors Members, and Prospective Board of Commissioners Members of Banks

To:
The Board of Directors of the Bank at their place.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 39 /SEOJK.03/2016

REGARDING

ASSESSMENT OF COMPETENCE AND PROPRIETY FOR PROSPECTIVE CONTROLLING SHAREHOLDERS, PROSPECTIVE MEMBERS OF THE BOARD OF DIRECTORS, AND PROSPECTIVE MEMBERS OF THE BOARD OF COMMISSIONERS OF BANKS

In light of the implementation of Financial Services Authority Regulation Number 27/POJK.03/2016 regarding the Assessment of Competence and Propriety 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, hereinafter referred to as the POJK on Competence and Propriety Assessment), it is necessary to regulate implementation provisions regarding the assessment of competence and propriety for prospective controlling shareholders, prospective members of the Board of Directors, and prospective members of the Board of Commissioners of banks, as follows:

I. GENERAL

1. In this Financial Services Authority Circular Letter, hereinafter abbreviated as SE OJK, the following terms are defined:

a. Bank means Commercial Banks, Sharia Commercial Banks, Rural Banks, and Sharia Rural Financing Institutions;

b. Commercial Bank, hereinafter referred to as BUK, is a commercial bank conducting conventional business activities as referred to in Law Number 7 of 1992 on Banking as amended by Law Number 10 of 1998, including branches and representative offices of banks located abroad;

c. Sharia Commercial Bank, hereinafter abbreviated as BUS, is a sharia commercial bank as referred to in Law Number 21 of 2008 on Sharia Banking, including representative offices of banks located abroad;

d. Rural Bank, hereinafter abbreviated as BPR, is a rural bank as referred to in Law Number 7 of 1992 on Banking as amended by Law Number 10 of 1998;

e. Sharia Rural Financing Institution, hereinafter abbreviated as BPRS, is a sharia rural financing institution as referred to in Law Number 21 of 2008 on Sharia Banking;

f. Sharia Business Unit, hereinafter abbreviated as UUS, is a sharia business unit as referred to in Law Number 21 of 2008 on Sharia Banking;

g. Key Party means the key party as referred to in the POJK on Competence and Propriety Assessment.

h. Controlling Shareholder for Banks, hereinafter abbreviated as PSP, is a legal entity, individual, and/or business group that:

1. owns shares of a company or Bank amounting to 25% (twenty-five percent) or more of the issued shares and has voting rights; or
2. owns shares of a company or Bank less than 25% (twenty-five percent) of the issued shares and has voting rights but can be proven to have controlled the company or Bank, either directly or indirectly.

i. Control is an action aimed at influencing the management and/or policy of a company, including Banks, in any way, either directly or indirectly.
Control over Banks can be done through various means, including the following:

1. owning alone or together 25% (twenty-five percent) or more of the Bank's shares;
2. directly managing and/or influencing the Bank's policy;
3. having option rights or other rights to own shares which, if exercised, would cause the party to own and/or control alone or together 25% (twenty-five percent) or more of the Bank's shares;
4. cooperating or taking concerted actions to achieve common goals in controlling the Bank (acting in concert) with or without a written agreement with other parties, so that together they own and/or control 25% (twenty-five percent) or more of the Bank's shares, either directly or indirectly, with or without a written agreement;
5. cooperating or taking concerted actions to achieve common goals in controlling the Bank (acting in concert) with or without a written agreement with other parties, so that together they have option rights or other rights to own shares, the exercise of which rights would cause the parties to own and/or control together 25% (twenty-five percent) or more of the Bank's shares;
6. controlling one or more other companies that collectively own and/or control together 25% (twenty-five percent) or more of the Bank's shares;
7. having the authority to appoint and/or dismiss members of the Board of Directors, members of the Board of Commissioners, and the Sharia Supervisory Board of the Bank;
8. indirectly influencing or managing and/or the Bank's policy;
9. exercising Control over the parent company; and/or
10. exercising Control over a party exercising Control as referred to in items 1) through 9).

In calculating the number of shares owned and/or controlled together by parties exercising Control over the Bank, it includes:

1. Bank shares owned by other parties whose voting rights can be used or controlled by the Bank's controller;
2. Bank shares owned by companies controlled by the Bank's controller;
3. Bank shares owned by affiliated parties of the Bank's controller;

The term affiliated party of the Bank's controller refers to:
a) members of the Board of Directors, members of the Board of Commissioners, or equivalents, their proxies, officials, or employees of the controlling company of the Bank; b) managers, supervisors, administrators, or their proxies, officials, or employees of the controlling company of the Bank, specifically for companies with the legal form of a cooperative; c) parties providing services to the controlling company of the Bank, including public accountants, appraisers, legal consultants, and other consultants proven to be controlled by the Bank's controller; d) parties having family relations with the Bank's controller due to marriage or descent up to the second degree, both horizontally and vertically, including in-laws; e) parties who, in the opinion of the Financial Services Authority, participate in influencing the management of the controlling company of the Bank, including shareholders and their families, directors' families, commissioners' families, supervisors' families, and managers' families.

4. Bank shares owned by subsidiaries of companies controlled by the Bank's controller;
5. Bank shares owned by other parties for (on behalf of) the Bank's controller (nominee shares) based on or not based on a specific agreement;
6. Bank shares owned by other parties whose transfer requires approval from the Bank's controller;
7. other Bank shares besides those referred to in items 1) through 6) that are controlled by the Bank's controller.

j. General Meeting of Shareholders of Banks, hereinafter abbreviated as RUPS:

1. for Banks in the form of a Limited Liability Company, is the RUPS as referred to in laws regarding limited liability companies;
2. for Banks in the form of a Regional-Owned Enterprise or Regional Public Enterprise, is the RUPS as referred to in laws regarding regional government;
3. for Banks in the form of a Cooperative, is the General Meeting of Members as referred to in laws regarding cooperatives.

k. Board of Directors:

1. for Banks in the form of a Limited Liability Company, is the Board of Directors as referred to in laws regarding limited liability companies;
2. for Banks in the form of a Regional-Owned Enterprise or Regional Public Enterprise, is the Board of Directors as referred to in laws regarding regional government;
3. for Banks in the form of a Cooperative, is the Management as referred to in laws regarding cooperatives;
4. for branches of banks located abroad, is the branch head of the bank located abroad, namely the branch head and officials one level below the branch head;
5. for representative offices of banks located abroad, is the head of the Representative Office of the bank located abroad.

l. Board of Commissioners:

1. for Banks in the form of a Limited Liability Company, is Commissioners as referred to in laws regarding limited liability companies;
2. for Banks in the form of a Regional-Owned Enterprise, is Commissioners as referred to in laws regarding regional government;
3. for Banks in the form of a Regional Public Enterprise, is Supervisors as referred to in laws regarding regional government;
4. for Banks in the form of a Cooperative, is Supervisors as referred to in laws regarding cooperatives.

m. Executive Officials are:

1. officials directly responsible to members of the Board of Directors or having significant influence on the Bank's policy and/or operations, including division heads, regional office heads, branch office heads, functional office heads whose position is at lowest equivalent to branch office head, heads of risk management units, heads of compliance units, and heads of internal audit units and/or other equivalent officials for BUK and BUS;
2. officials directly responsible to the Board of Directors or having influence on the Bank's policy and/or operations, including branch office heads, division heads, section heads, managers and/or other equivalent officials for BPR and BPRS.

n. Blacklist, hereinafter abbreviated as DTL, is a list managed by the Financial Services Authority containing parties prohibited from becoming shareholders, Controlling Shareholders, members of the Board of Directors, members of the Board of Commissioners, and Executive Officials in banking based on regulations governing the assessment of competence and propriety.

2. The assessment of competence and propriety is a process to assess/test the fulfillment of competence and propriety requirements in order to grant approval by the Financial Services Authority, hereinafter abbreviated as OJK, to parties who will control the Bank through ownership and/or management of the Bank, including prospective PSPs, prospective members of the Board of Directors, and prospective members of the Board of Commissioners of Banks. Thus, prospective PSPs, prospective members of the Board of Directors, and prospective members of the Board of Commissioners of Banks can only carry out actions, duties, and functions after obtaining approval from OJK.

II. PARTIES REQUIRED TO UNDERGO COMPETENCE AND PROPRIETY ASSESSMENT

The assessment of competence and propriety for Banks is conducted by OJK against i). prospective PSPs, ii). prospective members of the Board of Directors, and iii). prospective members of the Board of Commissioners.

1. Prospective PSPs include:
   a. individuals and/or legal entities who purchase, receive gifts, inherit, or other forms of transfer of rights over Bank shares so that they meet the PSP criteria; b. Bank shareholders who are not classified as PSPs (non-PSPs) who increase capital contributions, purchase Bank shares, receive Bank share gifts, inherit, or other forms of transfer of rights over Bank shares, so that they meet the PSP criteria;
   c. non-PSPs but assessed by OJK as exercising Control over the Bank;
   d. individuals and/or legal entities classified as controllers of the Bank due to changes in the Bank's business group structure; e. individuals and/or legal entities who will become PSPs in Banks resulting from mergers; f. individuals and/or legal entities who will become PSPs in Banks resulting from consolidations; g. individuals and/or legal entities who will become PSPs in Banks to be established.

2. Prospective members of the Board of Directors or prospective members of the Board of Commissioners include:
   a. individuals who have never served as members of the Board of Directors or Board of Commissioners of a Bank, who are nominated as members of the Board of Directors or Board of Commissioners of a Bank; b. individuals currently serving as members of the Board of Directors or Board of Commissioners of a Bank, who are nominated as members of the Board of Directors or Board of Commissioners of another Bank;
   c. individuals who have previously served as members of the Board of Directors and/or Board of Commissioners of a Bank, who are nominated as members of the Board of Directors or Board of Commissioners of the same Bank or another Bank;
   d. members of the Board of Commissioners of a Bank who are nominated as members of the Board of Directors of the same Bank; e. members of the Board of Commissioners of a Bank who are nominated as Independent Commissioners of the same Bank; f. members of the Board of Directors of a Bank who are nominated as Directors overseeing the Compliance Function of the same Bank; g. members of the Board of Directors of a Bank who are nominated as members of the Board of Commissioners of the same Bank; h. members of the Board of Directors or Board of Commissioners of a Bank who are nominated for higher positions in the same Bank, including:

1. members of the Board of Commissioners who will be appointed as Chief Commissioner/Deputy Chief Commissioner or equivalent in the same Bank;
2. members of the Board of Directors who will be appointed as Chief Director/Deputy Chief Director or equivalent in the same Bank;
   i. individuals nominated as members of the Board of Directors or Board of Commissioners in Banks resulting from mergers originating from merging Banks;
   j. individuals nominated as members of the Board of Directors or Board of Commissioners in Banks resulting from mergers originating from surviving Banks, including tenure extensions; k. individuals nominated as members of the Board of Directors or Board of Commissioners in Banks resulting from consolidations originating from consolidating Banks;
   l. individuals nominated as heads of representative offices of banks located abroad;
   m. individuals nominated as branch heads of banks located abroad; n. individuals who will become members of the Board of Directors or Board of Commissioners of BUSs or BPRSs resulting from business activity changes originating from Commercial Banks changing business activities to BUSs or BPRs changing business activities to BPRSs (conversions).

3. The assessment of competence and propriety is not conducted for tenure extensions for members of the Board of Directors and members of the Board of Commissioners, except for tenure extensions as referred to in item 2 letter j.

4. Tenure extensions of members of the Board of Directors and members of the Board of Commissioners as referred to in item 3 are reported to OJK accompanied by the RUPS decision establishing the said tenure extension.

III. FACTORS FOR COMPETENCE AND PROPRIETY ASSESSMENT

Factors assessed in the competence and propriety assessment include:

1. Integrity for prospective PSPs, prospective members of the Board of Directors, or prospective members of the Board of Commissioners.
   Prospective candidates must fulfill integrity requirements as regulated in Article 4 and Article 5 of the POJK on Competence and Propriety Assessment. a. Regarding integrity requirements involving legal capacity, the understanding of legal capacity refers to the Civil Code. b. Regarding integrity requirements involving commitment to comply with laws and regulations, for prospective candidates previously prohibited from becoming Key Parties, they must have a commitment not to commit and/or repeat acts and/or actions that cause them to be included as parties prohibited from becoming Key Parties.
   c. Regarding integrity requirements involving commitment to the development of healthy Financial Service Institutions, prospective PSPs must submit:

1. the prospective PSP's plan for the healthy operational development of the Bank, which must at least contain the direction and strategy for Bank development, and the plan for strengthening the Bank's capital for a minimum period of 3 (three) years.
2. a written statement containing a commitment not to transfer the Bank shares they own within a certain period.
   d. Regarding integrity requirements involving not being included as a party prohibited from becoming a Key Party, among others, the prospective candidate must not be listed in the DTL.

2. Financial Reputation for prospective members of the Board of Directors or prospective members of the Board of Commissioners.
   Prospective members of the Board of Directors or prospective members of the Board of Commissioners must fulfill financial reputation requirements as regulated in Article 4 and Article 6 of the POJK on Competence and Propriety Assessment.

3. Financial Feasibility for prospective PSPs
   Prospective PSPs must fulfill financial feasibility requirements as regulated in Article 4 and Article 7 of the POJK on Competence and Propriety Assessment. a. Regarding financial feasibility requirements involving having a financial reputation, prospective PSPs must fulfill the following requirements:

1. not having non-performing loans and/or financing; and
2. never having been declared bankrupt and/or never having been a shareholder, member of the Board of Directors, or member of the Board of Commissioners declared guilty of causing a company to be declared bankrupt based on a court decision within the last 5 (five) years before nomination;
   b. Regarding financial feasibility requirements involving having financial capacity that can support the Bank's business development, which is based on among others:
3. financial capacity analysis at the time of submission and its projection for a minimum period of 3 (three) years prepared by an independent consultant for prospective PSPs that are legal entities;
4. financial capacity analysis conducted through tax document analysis for individual prospective PSPs.
   Included in the criteria of having financial capacity that can support the Bank's business development is not having overdue and problematic debts.
   The term overdue and problematic debts refers to debts that have matured and/or do not meet requirements for restructuring.
   In the understanding of having overdue and problematic debts, it means if the prospective PSP:
5. has overdue and problematic debts; and/or
6. is a controller, member of the Board of Directors (management), or member of the Board of Commissioners (supervisors) of a legal entity that has overdue and problematic debts;
   in both the banking industry and outside the banking industry.
   c. Regarding financial feasibility requirements involving commitment to take necessary measures if the Bank faces financial difficulties, the necessary measures referred to are providing liquidity assistance to the Bank, strengthening the Bank's capital, or seeking other investors to strengthen the Bank's liquidity or capital.

4. Competence for prospective members of the Board of Directors and prospective members of the Board of Commissioners.
   Prospective members of the Board of Directors and prospective members of the Board of Commissioners must fulfill competence requirements as regulated in Article 4 and Article 8 of the POJK on Competence and Propriety Assessment, which include:
   a. for prospective members of the Board of Directors:

1. adequate and relevant knowledge in the banking field related to their position.
   The term knowledge in the banking field includes among others:
   a) for prospective members of the Board of Directors of BUKs, knowledge of BUK regulations and operations including understanding of risk management. b) for prospective members of the Board of Directors of BUSs, knowledge of sharia banking regulations and operations including understanding of risk management. c) for prospective members of the Board of Directors of BPRs, knowledge of BPR regulations and operations including understanding of risk management. d) for prospective members of the Board of Directors of BPRSs, knowledge of BPRS regulations and operations including understanding of risk management. e) for prospective members of the Board of Directors of BUKs who are also responsible for UUSs, banking knowledge includes knowledge as referred to in letter a) and letter b).

2. Knowledge regarding the duties and responsibilities of the key entity and understanding of main business activities and main risks of FSIs in financial conglomerates, for prospective Directors who will serve in Banks designated as key entities;
   The designation of Banks as key entities and the understanding of financial conglomerates refer to Financial Services Authority (OJK) regulations regarding the application of integrated governance for financial conglomerates.

3. Experience and expertise in the banking and/or financial fields;
   The term experience and expertise in the banking and/or financial fields includes among others experience and expertise in operations, marketing, accounting, audit, financing, lending, money markets, capital markets, law, or experience and expertise in the supervision of financial service institutions. In addition, the experience and expertise requirements in the banking and/or financial fields:
   a) for members of the Board of Directors of BUKs, must consider the fulfillment of requirements that the majority (more than 50%) of the Board of Directors members must have experience in Commercial Bank operations for a minimum of 5 (five) years at the lowest as Executive Officials; b) for prospective members of the Board of Directors of BUSs, must consider:
   (1) fulfillment of requirements that the majority (more than 50%) of the Board of Directors members must have experience for a minimum of 4 (four) years with the lowest position as Executive Officials in the banking industry and at least 1 (one) year of which serving at the lowest as Executive Officials in BUSs and/or UUSs. (2) for BUSs established through business activity changes (conversions), the composition of the Board of Directors in the first 2 (two) years after conversion must have at least 1 (one) prospective member of the Board of Directors fulfilling the requirements as referred to in item (1). (3) the majority of Board of Directors members of BUSs resulting from business activity changes (conversions) must fulfill the provisions as referred to in item (1) at the latest 2 (two) years after the business activity change license is granted. c) for members of the Board of Directors of BPRs, must have experience and expertise in the banking and/or non-banking financial service institutions fields for a minimum of 2 (two) years. d) for members of the Board of Directors of BPRSs, must consider the fulfillment of requirements that the majority (at least 50%) of the Board of Directors members must have operational experience for a minimum of:
   (1) 2 (two) years as officials in financing and/or lending fields in sharia banking; (2) 2 (two) years as officials in financing and/or lending fields in conventional banking and having knowledge in the sharia banking field; or (3) 3 (three) years as directors or equivalent to directors in sharia microfinance institutions.

4. Ability to conduct strategic management for the development of healthy Banks.
   The term ability to conduct strategic management includes among others the ability to anticipate economic, financial, and banking developments, interpret the Bank's vision and mission, and analyze the banking industry situation. For members of the Board of Directors of BPRs, the ability to anticipate economic developments includes the ability to explore regional banking potential.

b. for prospective members of the Board of Commissioners:
Prospective members of the Board of Commissioners must have:

1. adequate and relevant knowledge in the banking field related to their position; and/or
2. experience in the banking and/or financial fields.
   The...

The meaning of knowledge in the banking field includes:

1. for prospective members of the Board of Commissioners of Universal Banks (BUK), knowledge regarding regulations and BUK operations, including understanding risk management.
2. for prospective members of the Board of Commissioners of Sharia Banks (BUS), knowledge regarding regulations and Sharia banking operations, including understanding risk management.
3. for prospective members of the Board of Commissioners of Rural Banks (BPR), knowledge regarding regulations and BPR operations, including understanding risk management.
4. for prospective members of the Board of Commissioners of Sharia Rural Banks (BPRS), knowledge regarding regulations and BPRS operations, including understanding risk management.
   The meaning of experience in the banking and/or financial fields includes experience in operations, marketing, accounting, audit, funding, lending, money markets, capital markets, law, or experience in the supervision of financial service institutions. In addition, for prospective members of the Board of Commissioners who will serve in a Bank designated as the main entity, they must also have knowledge regarding the duties and responsibilities of the main entity and an understanding of the main business activities and main risks of the Financial Service Institution (LJK) in a financial conglomerate. The designation of a Bank as the main entity and the understanding of financial conglomerates refer to OJK regulations regarding the application of integrated governance for financial conglomerates. In addition to meeting the integrity, reputation or financial feasibility, and competence requirements above, prospective PSPs, prospective members of the Board of Directors and/or prospective members of the Board of Commissioners must also meet requirements regarding ownership and management/management of the Bank as regulated in applicable legislation.

IV. ADMINISTRATIVE REQUIREMENTS FOR PROSPECTIVE PSP

1. The Bank's application to obtain approval for a prospective PSP is submitted by the PSP/legal entity's board of directors (in the case of a bank establishment license application) or by Bank Board of Directors members (for Banks that have obtained a business license) to the OJK, accompanied by administrative requirement documents as regulated in the POJK on Competence and Propriety Assessment and other regulations governing Bank shareholder requirements, namely:
   a. Regulations governing requirements and procedures for opening branch offices, sub-branches, and representative offices of banks located abroad; b. Regulations governing requirements and procedures for purchasing Bank shares;
   c. Regulations governing requirements and procedures for Bank mergers, consolidations, and acquisitions;
   d. Regulations governing Bank institutional matters; e. Regulations governing the change of business activities from Conventional Banks to Sharia Banks; f. Regulations governing the maximum limit of Bank share ownership; g. Regulations governing single ownership in Indonesian banking; and h. Regulations governing prudential principles in capital participation.
2. The details of the aforementioned administrative requirement documents are at least as listed in:
   a. Part One of the Annex of this SEOJK, for prospective PSPs of BUK. b. Part Two of the Annex of this SEOJK, for prospective PSPs of BPR.
   c. Part Three of the Annex of this SEOJK, for prospective PSPs of BUS and BPRS.

V. ADMINISTRATIVE REQUIREMENTS FOR PROSPECTIVE MEMBERS OF THE BOARD OF DIRECTORS AND PROSPECTIVE MEMBERS OF THE BOARD OF COMMISSIONERS

1. The Bank's application to obtain approval for prospective members of the Board of Directors and prospective members of the Board of Commissioners is submitted by...

by the PSP/legal entity's board of directors (in the case of a bank establishment license application) or by Bank Board of Directors members (for Banks that have obtained a business license) to the OJK, accompanied by administrative requirement documents as regulated in the POJK on Competence and Propriety Assessment and other regulations governing requirements for Board of Directors members, Board of Commissioners members, branch office heads, or heads of representative offices of banks located abroad, namely:
a. Regulations governing requirements and procedures for opening branch offices, sub-branches, and representative offices of banks located abroad; b. Regulations governing the implementation of the Bank's compliance function;
c. Regulations governing Bank institutional matters;
d. Regulations governing the implementation of governance for Banks; e. Regulations governing the change of business activities from Conventional Banks to Sharia Banks; f. Regulations governing the application of integrated governance for Banks; g. Regulations governing risk management certification for Bank officials and executives; and h. Regulations governing the use of foreign labor in banking.
2. The details of the aforementioned administrative requirement documents are at least as listed in:
a. Part One of the Annex of this SEOJK, for prospective members of the Board of Directors and prospective members of the Board of Commissioners of BUK, including prospective members of the BUK Board of Directors assigned to concurrently serve as Directors of the Sharia Business Unit. b. Part Two of the Annex of this SEOJK, for prospective members of the Board of Directors and prospective members of the Board of Commissioners of BPR.
c. Part Three of the Annex of this SEOJK, for prospective members of the Board of Directors and prospective members of the Board of Commissioners of BUS and BPRS, including BUK Directors designated from the outset to serve as Directors of the UUS with authority and responsibility solely to manage UUS business activities.

VI. SUPPORTING DOCUMENTS FOR ADMINISTRATIVE REQUIREMENT DOCUMENTS
In the event that the OJK deems it necessary, shareholders for the establishment of a new Bank or Bank Board of Directors members for Banks that have obtained a business license must submit supporting documents for the administrative requirement documents required as referred to in item IV and item V.

VII. SUBMISSION OF ADMINISTRATIVE REQUIREMENT DOCUMENTS

1. Before submitting administrative requirement documents to the Financial Services Authority (OJK) in a nomination application, the Bank must first compile a compliance checklist of administrative requirement documents conducted by:
   a. the compliance work unit; b. the party implementing the compliance function in the event the Bank is not yet required to have a compliance work unit; or
   c. the PSP/legal entity's board of directors in the event of a Bank establishment license application.
2. The aforementioned compliance checklist is accompanied by an explanation stating that the submitted administrative requirement documents:
   a. are complete and correct in number and format, and the substance of the submitted administrative requirement documents is in accordance with the requirements in this OJK Circular. b. state that administrative requirements in the form of "statements" and "fill-in lists" have been correctly filled out and signed by the proposed candidates.
3. In the event that there is no Director overseeing the compliance function or the Director overseeing the compliance function cannot perform their duties, the compliance checklist is signed by the replacement official as regulated in the provisions regarding the Director overseeing the compliance function.
4. In the event that the Director overseeing the compliance function has a conflict of interest with the Bank, the compliance checklist is signed by other Board of Directors members.
5. In the event that the Bank is not yet required to have a Director overseeing the compliance function, the compliance checklist is signed by other Board of Directors members.
6. In the event that the competence and propriety assessment process is conducted during the bank establishment license application, the compliance checklist is signed by the party submitting the application.
7. The compliance checklist is submitted simultaneously with the submission of the administrative requirement documents of the proposed candidates.

VIII. PROCEDURE FOR COMPETENCE AND PROPRIETY ASSESSMENT

1. The procedure for competence and propriety assessment as regulated in Article 13 and Article 16 of the POJK on Competence and Propriety Assessment is conducted through administrative assessment.
2. In the context of the administrative assessment of prospective PSPs, prospective PSPs must present/explain at least regarding:
   a. the prospective PSP's plan for the development of the Bank to be owned for at least 3 (three) years from ownership; and b. the prospective PSP's strategy in the event the Bank to be owned experiences liquidity/solvency difficulties.
3. In the event that the prospective PSP is a legal entity then:
   a. the competence and propriety assessment of the legal entity is conducted by assessing the legal entity itself, its Board of Directors members and Board of Commissioners members, and parties who, based on the OJK's assessment, are the ultimate shareholders of that legal entity. b. In the event that ultimate shareholders are the government of another country, and the law in that country does not allow such ultimate shareholders to provide data and documents, the OJK designates other ultimate shareholders that are directly controlled by the government of that other country based on valid supporting documents as a replacement for the government of that other country's ultimate shareholders. The meaning of valid supporting documents includes, among others, the designation of another legal entity controlled by the government of another country as ultimate shareholders for the purpose of competence and propriety assessment, and a statement that the law of that country prohibits the relevant government from providing data and documents.
   c. In addition to the parties referred to in letters a and b, the OJK may designate other parties who, based on the OJK's assessment, exercise Control, to submit administrative requirement documents.
   d. The presentation/explanation may be conducted by the legal entity itself, another legal entity within its business group, or ultimate shareholders. e. The parties referred to in letters a, b, and c must attend the presentation/explanation.
4. The Bank must first conduct an assessment of integrity, financial reputation, and competence requirements for prospective members of the Board of Directors and/or prospective members of the Board of Commissioners to be proposed. The assessment must at least cover:
   a. assessment of track record including sanctions previously imposed by the Bank; b. ownership of non-performing loans/financing or bankruptcy;
   c. educational background, both formal and informal;
   d. achievements attained in the performance of duties; e. the candidate's ability to hold the position to be occupied; and f. concurrent positions.
   The assessment is conducted by the nomination committee as referred to in regulations governing the application of governance for banking. The results of the assessment are submitted to the OJK at the time of proposing members of the Board of Directors and/or members of the Board of Commissioners. In the event that the Bank is not yet required to have a Nomination Committee, the assessment is conducted by the compliance work unit or compliance function. In the event that the nomination of members of the Board of Directors and/or members of the Board of Commissioners is conducted during the bank establishment license application, the assessment is conducted by the party submitting the application.
5. In the context of the administrative assessment of prospective members of the Board of Directors and prospective members of the Board of Commissioners, the OJK conducts clarification with the respective candidates if:
   a. The proposed candidate has negative data or information obtained by the OJK. b. The proposed candidate does not yet have relevant experience in Indonesian banking, considering the job position as well as the size and complexity of the Bank where the candidate will be nominated.

1. For BUK, the proposed candidate will undergo clarification as listed in the table below:
   The meaning of having previously served as a member of the Board of Directors of BUK does not include parties who have previously served as heads of representative offices of banks located abroad.
   Note:
   K: Clarified T: Not Clarified
   The meaning of having previously served as an Executive Official of BUK and BUS includes Executive Officials at foreign branches of BUK and BUS in Indonesia.
2. For BUS, the proposed candidate will undergo clarification as listed in the table below:
   a) Parties who have experience in BUS who will serve as members of the Board of Directors or Board of Commissioners in BUS.
   Note:
   K: Clarified T: Not Clarified b) Parties who have experience in BUK who will serve as members of the Board of Directors or Board of Commissioners in BUS.
   Note:
   K: Clarified T: Not Clarified
   The meaning of having Sharia banking experience is experience in the Sharia banking industry with the lowest position as an Executive Official.
   The meaning of having previously served as a member of the Board of Directors of banking does not include parties who have previously served as heads of representative offices of banks located abroad.
   The meaning of having previously served as an Executive Official of Sharia banking includes Executive Officials at foreign branches of BUS.
3. For BPR, the proposed candidate will undergo clarification as listed in the table below:
   a) Parties who have experience in BPR/BPRS who will serve as members of the Board of Directors or Board of Commissioners in BPR. b) Parties who have experience in BUK/BUS who will serve as members of the Board of Directors or Board of Commissioners in BPR. Note:
   K: Clarified T: Not Clarified
   Note:
   K: Clarified T: Not Clarified
   The meaning of having previously served as an Executive Official of BUK and BUS includes Executive Officials at foreign branches of BUK and BUS in Indonesia.
4. For BPRS, the proposed candidate will undergo clarification as listed in the table below:
   a) Parties who have experience in BPRS who will serve as members of the Board of Directors and Board of Commissioners in BPRS. b) Parties who have experience in BUS who will serve as members of the Board of Directors and Board of Commissioners in BPRS. c) Parties who have experience in BPR who will serve as members of the Board of Directors and Board of Commissioners in BPRS. Note:
   K: Clarified T: Not Clarified
   Note:
   K: Clarified T: Not Clarified d) Parties who have experience in BUK who will serve as members of the Board of Directors and Board of Commissioners in BPRS.
   The meaning of having Sharia experience is experience as an official in the funding and/or financing field in Sharia banking or as a Director or Director-level official in a Sharia microfinance institution.
   c. The proposed candidate was previously Not Approved by OJK due to not meeting competence requirements in the most recent competence and propriety assessment before nomination.

6. The number of prospective members of the Board of Directors and/or prospective members of the Board of Commissioners that can be proposed in an application is at most 2 (two) persons for each vacancy, and the designation of the proposed candidates must be in accordance with applicable legislation.
7. Cessation of Competence and Propriety Assessment
   a. The OJK ceases the competence and propriety assessment of prospective PSPs, prospective members of the Board of Directors, and prospective members of the Board of Commissioners if, during the assessment, the candidate:

1. is undergoing a legal process;
2. is undergoing a competence and propriety assessment at a Financial Service Institution (LJK); and/or
3. is in the process of re-assessment due to indications of integrity, financial feasibility/reputation, and/or competence issues at an LJK.
   b. The meaning of undergoing a legal process is if the prospective PSP, prospective member of the Board of Directors, or prospective member of the Board of Commissioners has the status of suspect or defendant in a criminal case or is undergoing a judicial process related to bankruptcy.
   c. The meaning of undergoing a competence and propriety assessment at an LJK is if the prospective PSP, prospective member of the Board of Directors, or prospective member of the Board of Commissioners is being proposed as a prospective PSP, prospective member of the Board of Directors, or prospective member of the Board of Commissioners at another LJK.
   The OJK ceases the competence and propriety assessment against nominations other than the first nomination submitted by the LJK to the OJK. d. The meaning of being in the process of re-assessment due to indications of integrity, financial feasibility/reputation, and/or competence issues at an LJK is if the prospective PSP, prospective member of the Board of Directors, or prospective member of the Board of Commissioners is in the process of re-assessment due to indications of integrity, financial feasibility/reputation, and/or competence issues in their capacity as a Principal Party. The OJK ceases the competence and propriety assessment against the relevant nomination submitted by the LJK to the OJK. e. The OJK notifies the cessation of the competence and propriety assessment to the Bank submitting the nomination. f. Prospective PSPs, prospective members of the Board of Directors, and prospective members of the Board of Commissioners whose competence and propriety assessment has been ceased may be proposed again to the OJK to become prospective PSPs, prospective members of the Board of Directors, and prospective members of the Board of Commissioners if the respective party has completed:
4. the legal process, proven by the existence of:
   a) a Letter of Order for Termination of Investigation (SP3); or b) a Court Decision that has obtained permanent legal force stating that the respective party is not guilty; c) a Court Decision that has obtained permanent legal force stating that the respective party is not declared bankrupt; or
5. the re-assessment process related to integrity, financial feasibility/reputation, and/or competence issues at an LJK but it is not proven to have integrity, financial feasibility/reputation, and/or competence issues.

IX. RESULTS OF COMPETENCE AND PROPRIETY ASSESSMENT

1. The OJK determines the results of the competence and propriety assessment as Approved or Not Approved.

2. The timeframe for determining the results of the competence and propriety assessment is at most 30 (thirty) working days after all application documents are received completely.

3. In the event that the competence and propriety assessment process for prospective PSPs, prospective members of the Board of Directors, or prospective members of the Board of Commissioners is conducted during the application for a bank establishment license, the change of business activities from a conventional bank to a Sharia bank, the merger and/or consolidation of a Bank, the OJK provides the determination of the results of the competence and propriety assessment within a timeframe in accordance with regulations governing the granting of licenses for establishment, change of business activities from conventional banks to Sharia banks, and merger and/or consolidation of Banks.

4. Prospective PSPs, prospective members of the Board of Directors, and/or prospective members of the Board of Commissioners who are Approved by the OJK are declared to meet the requirements to become PSPs, members of the Board of Directors, and/or members of the Board of Commissioners at the Bank submitting the nomination.

5. The General Meeting of Shareholders (RUPS) appoints prospective members of the Board of Directors or prospective members of the Board of Commissioners who are Approved by the OJK within a timeframe as regulated in provisions governing institutional matters for BUK, BUS, BPR, and BPRS.

6. The approval from the OJK becomes invalid if, by the end of the timeframe referred to in item 5, prospective members of the Board of Directors and/or prospective members of the Board of Commissioners are not appointed by the RUPS.

7. Prospective PSPs, prospective members of the Board of Directors, and/or prospective members of the Board of Commissioners who are Not Approved by the OJK are declared not to meet the requirements to become PSPs, members of the Board of Directors, and/or members of the Board of Commissioners at the Bank submitting the nomination, with the condition:
   a. Prospective members of the Board of Directors and/or prospective members of the Board of Commissioners who are Not Approved by the OJK originating from the transition of positions as referred to in items II.2.d to II.2.h, the respective party may still perform their duties and functions as members of the Board of Directors, or members of the Board of Commissioners at the relevant Bank as long as they have not been dismissed from their previous position in accordance with the Bank's Articles of Association. b. Prospective members of the Board of Directors or prospective members of the Board of Commissioners who are Not Approved by the OJK originating from Executive Officials currently serving at the Bank, the respective party may still perform their duties and functions as Executive Officials at the relevant Bank as long as they have not been dismissed from their previous position in accordance with the Bank's Articles of Association.

8. Prospective members of the Board of Directors or prospective members of the Board of Commissioners who are Not Approved by the OJK but have obtained approval and been appointed as members of the Board of Directors or members of the Board of Commissioners of the Bank in accordance with the RUPS decision must have the Bank convene an RUPS to cancel the appointment of the respective party within a timeframe of at most 3 (three) months from the date of the Not Approved determination.

9. The Bank must report the cancellation of the appointment of prospective members of the Board of Directors and/or prospective members of the Board of Commissioners to the OJK at most 10 (ten) working days after the RUPS for the cancellation of the appointment. In the event that there are no regulations governing the reporting of the cancellation of the appointment of prospective members of the Board of Directors or prospective members of the Board of Commissioners by the RUPS, the Bank must report at most 7 (seven) working days after the RUPS for the cancellation of the appointment of prospective members of the Board of Directors or prospective members of the Board of Commissioners.

10. Prospective...

11. Proposed PSPs who are Not Approved by OJK due to not meeting integrity requirements but already hold shares in the Bank submitting the nomination, must:
    a. transfer all their share ownership in the relevant bank and not exercise Control; and b. cannot exercise shareholder rights, namely the right to attend, vote, and be counted in the quorum at the General Meeting of Shareholders (GMS), as well as the right to receive distributed dividends.

The transfer of share ownership by the Proposed PSP who is Not Approved by OJK as mentioned above must be carried out no later than 1 (one) year from the date of the Not Approved determination.

11. Proposed PSPs who are Not Approved by OJK due to not meeting financial feasibility requirements but already hold shares in the Bank submitting the nomination, must:
    a. transfer a portion of their share ownership in the relevant bank so that the number of shares owned returns to the initial number of shares before the addition of shares that caused the individual to become a Proposed PSP, and not exercise Control; and b. can only exercise shareholder rights, namely the right to attend, vote, and be counted in the quorum at the GMS, as well as the right to receive distributed dividends, in proportion to the initial number of shares before the addition of shares that caused the individual to become a Proposed PSP.

The transfer of share ownership as mentioned in letter a must be carried out no later than 1 (one) year from the date of the Not Approved determination. In the event that the Proposed PSP does not carry out the partial transfer of share ownership within the specified period, the individual cannot exercise shareholder rights over all shares owned in the relevant bank until the individual carries out the partial transfer of share ownership.

12. The transfer of share ownership as mentioned in numbers 10 and 11 above can be carried out through donation or through sale to parties other than those having a relationship...

family relationship up to the second degree, including to their business group.

The term family relationship up to the second degree includes:
a. Biological/step/adopted parents; b. Biological/step/adopted siblings along with their husband or wife;
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 husband or wife; g. Husband/wife; h. In-laws;
i. Brother-in-law/Sister-in-law;
j. Husband/wife of biological/step/adopted children; k. Grandparents of husband/wife;
l. Husband/wife of biological/step/adopted grandchildren;
m. Biological/step/adopted siblings of husband/wife along with their husband or wife.

The prohibition on transferring share ownership to parties as mentioned in letters a through m does not apply to transfers resulting from inheritance.

13. Banks are required to report the share transfer as mentioned in numbers 10 and 11 to OJK by referring to regulations governing the reporting of articles of association changes related to changes in share ownership in Banks.

X. RESUBMISSION OF PROPOSED BOARD OF DIRECTORS MEMBERS OR PROPOSED BOARD OF COMMISSIONERS MEMBERS WHO ARE DETERMINED NOT APPROVED

1. Proposed Board of Directors members or proposed Board of Commissioners members who are determined Not Approved can be nominated again to OJK no earlier than 6 (six) months from the date of the Not Approved determination by OJK.

2. Proposed Board of Directors members or proposed Board of Commissioners members who are Not Approved due to competency requirements can be nominated again before 6 (six) months if nominated again for:
   a. a different position field at an equivalent position or a lower position at the same Bank.

   Example 1:
   A Proposed Financial Director at Bank X who is Not Approved by OJK can be nominated again before 6 (six) months if the individual is nominated again as a Proposed Credit Director at Bank X.

   Example 2:
   A Proposed President Director at Bank Y who is Not Approved by OJK can be nominated again before 6 (six) months if the individual is nominated again as a Financial Director at Bank Y.

   b. a position at another Bank with a smaller size and lower complexity.
   The size and complexity of Banks are reflected, among others, in the classification of Commercial Bank Business Activities (BUKU) or Rural Bank Business Activities (BPRKU);

   Example:
   A Proposed Director at a BPRKU 3 Bank who is Not Approved by OJK can be nominated again before 6 (six) months if the individual is nominated again as a Proposed Director at a BPRKU 2 or BPRKU 1 Bank.

   c. a position at a Financial Institution (LJK) other than a Bank.

   Example:
   A Proposed Director at a Sharia Commercial Bank (BUS) who is Not Approved by OJK can be nominated again before 6 (six) months if the individual is nominated again as a Proposed Director at an Insurance Company.

3. The resubmission of candidates as mentioned in number 2 letters a and b can be carried out no earlier than 1 (one) month from the date of the Not Approved determination.

4. The resubmission of proposed Board of Directors members or proposed Board of Commissioners members who are determined Not Approved due to competency requirements as mentioned in number 1 must be accompanied by supporting documents proving that the resubmitted candidate has improved their competency.

XI. PROCEDURE...
XI. PROCEDURE...

XI. PROCEDURE FOR ASSESSMENT OF COMPETENCE AND PROPRIETY FOR PROPOSED BOARD OF DIRECTORS MEMBERS AND PROPOSED BOARD OF COMMISSIONERS MEMBERS OF INTERMEDIARY BANKS AND BANKS IN RESCUE/RESOLUTION BY THE DEPOSIT INSURANCE CORPORATION (LPS)

1. An Intermediary Bank is a commercial bank established by the Deposit Insurance Corporation to be used as a resolution vehicle by accepting the transfer of part or all of the assets and/or liabilities of Banks handled by the Deposit Insurance Corporation, subsequently conducting banking business activities, and whose ownership will be transferred to other parties.

2. The assessment of competence and propriety for Intermediary Banks and Banks in rescue/resolution by LPS is only conducted for proposed Board of Directors members and/or proposed Board of Commissioners members.

3. The assessment of competence and propriety for proposed Board of Directors members and/or proposed Board of Commissioners members of Intermediary Banks is conducted at the time of submitting the business license application for the Intermediary Bank.

4. Requests to obtain OJK approval for proposed Board of Directors members and/or proposed Board of Commissioners members of Intermediary Banks and Banks in rescue/resolution by LPS are submitted by LPS to OJK.

5. Factors assessed in the competence and propriety assessment for proposed Board of Directors members and/or proposed Board of Commissioners members of Intermediary Banks and Banks in rescue/resolution by LPS refer to Chapter II of POJK on Assessment of Competence and Propriety.

6. Administrative document requirements for proposed Board of Directors members and/or proposed Board of Commissioners members of Intermediary Banks and Banks in rescue/resolution by LPS that must be submitted refer to numbers V and VI of this SE OJK.

7. The procedure for assessing the competence and propriety of proposed Board of Directors members and/or proposed Board of Commissioners members of Intermediary Banks and Banks in rescue/resolution by LPS is carried out through the following steps:
   a. Initial administrative assessment
   The initial administrative assessment is conducted to determine whether the individual:
   1) has non-performing loans and/or financing; and
   2) is included as a party prohibited from becoming a Principal Party;
   b. Subsequent administrative assessment

8. Proposed Board of Directors members and/or proposed Board of Commissioners members of Intermediary Banks and Banks in rescue/resolution by LPS who meet the requirements based on the results of the initial administrative assessment as mentioned in number 7 letter a above are granted provisional approval by OJK, thereby empowering the individual to carry out actions, duties, and functions as a Board of Directors member or Board of Commissioners member.

9. Proposed Board of Directors members and/or proposed Board of Commissioners members of Intermediary Banks and Banks in rescue/resolution by LPS who do not meet the requirements in the initial administrative assessment as mentioned in number 7 letter a above are not granted provisional approval by OJK, with the consequence that the proposed Board of Directors members and/or proposed Board of Commissioners members of Intermediary Banks and Banks in rescue/resolution by LPS are prohibited from carrying out actions, duties, and functions as a Board of Directors member or Board of Commissioners member.

10. LPS may resubmit new proposed Board of Directors members and/or new proposed Board of Commissioners members of Intermediary Banks and Banks in rescue/resolution by LPS.

11. OJK notifies the results of the initial administrative assessment as mentioned in number 7 letter a above in writing to LPS.

12. Intermediary Banks or Banks in rescue/resolution by LPS are required to complete all administrative document requirements regarding Board of Directors members and/or Board of Commissioners members who have received provisional approval no later than 1 (one) month from the date of provisional approval by OJK for the purpose of subsequent administrative assessment.

13. In carrying out the "subsequent administrative assessment" as mentioned in number 7 letter b:
    a. for Intermediary Banks, the provisions as regulated in item VIII.1, item VIII.5, and item VIII.6 of this SE OJK apply. b. for Banks in rescue/resolution by LPS, the provisions as regulated in number VII and item VIII.1, item VIII.4, item VIII.5, and item VIII.6 of this SE OJK apply.

14. OJK determines the final result of the competence and propriety assessment based on the subsequent administrative assessment as mentioned in number 7 letter b, as:
    a. Approved; or b. Not Approved.

15. The determination of the final result of the competence and propriety assessment is carried out by OJK no later than 6 (six) months from the date of provisional approval and is notified to LPS and the Intermediary Bank or Bank in rescue/resolution by LPS.

16. Board of Directors members or Board of Commissioners members of Intermediary Banks or Banks in rescue/resolution by LPS who are Approved as mentioned in number 14 letter a may continue to carry out actions, duties, and functions as a Board of Directors member or Board of Commissioners member of the Intermediary Bank or Bank in rescue/resolution by LPS.

17. Board of Directors members or Board of Commissioners members of Intermediary Banks or Banks in rescue/resolution by LPS who are Not Approved as mentioned in number 14 letter b then:
    a. the previously issued provisional approval becomes invalid; b. Board of Directors members or Board of Commissioners members of Intermediary Banks or Banks in rescue/resolution by LPS are prohibited from carrying out actions, duties, and functions as a Board of Directors member or Board of Commissioners member; and
    c. LPS is required to cancel the appointment of the individual within a period of no later than 3 (three) months;
    counted from the date of the Not Approved determination.

XII. DELIVERY ADDRESS

Requests for letters and documents as mentioned in numbers IV, V, and VI above:

1. For Commercial Banks (BUK), submitted to:
   Licensing and Banking Information Department, Financial Services Authority, with a copy to:
   a. Bank Supervision Department or Regional Office of the Financial Services Authority in Jakarta, for Commercial Banks with headquarters in the Special Capital Region of Jakarta; or b. Regional Office or Local Financial Services Authority Office, for Commercial Banks with headquarters outside the Special Capital Region of Jakarta.

2. For Rural Banks (BPR), submitted to:
   a. Regional Office of the Financial Services Authority in Jakarta for Rural Banks with headquarters in the Special Capital Region of Jakarta; b. Local Regional Office for Rural Banks with headquarters in the working area of Regional Offices outside the Special Capital Region of Jakarta; or
   c. Local Financial Services Authority Office for Rural Banks with headquarters in the working area of Financial Services Authority Offices outside the Special Capital Region of Jakarta, with a copy to the Local Regional Office.

3. For Sharia Commercial Banks (BUS) and Sharia Rural Banks (BPRS), submitted to:
   a. Sharia Banking Department of the Financial Services Authority, for BUS and BPRS with headquarters in the Special Capital Region of Jakarta; b. Sharia Banking Department of the Financial Services Authority, for BUS with headquarters outside the Special Capital Region of Jakarta, with a copy to the Regional Office or Local Financial Services Authority Office; or
   c. Regional Office or Local Financial Services Authority Office, for BPRS with headquarters outside the Special Capital Region of Jakarta.

4. For Sharia Business Units (UUS), submitted to:
   a. Sharia Banking Department of the Financial Services Authority, for UUS submitting proposed Board of Directors members for Commercial Banks (BUK) who only serve as Directors of the UUS, with a copy to the Licensing and Banking Information Department; or b. Licensing and Banking Information Department of the Financial Services Authority, for UUS submitting proposed Board of Directors members for Commercial Banks (BUK) who hold concurrent positions as Directors of the UUS, with a copy to the Sharia Banking Department;

Submission of requests and/or administrative document requirements can be carried out via electronic means if regulations governing such matters have been implemented.

XIII. REPORT ON PLANNED CHANGES IN BUSINESS GROUP STRUCTURE

The report on planned changes in business group structure as mentioned in Article 30 of POJK on Assessment of Competence and Propriety covers all parties related to the Bank in terms of control up to ultimate shareholders.

An example of reporting on planned changes in business group structure is as mentioned in the Appendix of this SE OJK. The report on planned changes in business group structure is submitted to the Financial Services Authority at the address as stated in number XII.

XIV. OTHER PROVISIONS

1. The explanation of the status of Bank shareholders in the published report as mentioned in Article 23 letter b of POJK on Assessment of Competence and Propriety is included in the Quarterly Publication Report and Annual Publication Report.

2. The assessment of competence and propriety for proposed PSPs, proposed Board of Directors members, and proposed Board of Commissioners members that are being conducted at the time of the implementation of these provisions, then:
   a. the assessment process and assessment results still refer to the provisions of Bank Indonesia Regulation Number 12/23/PBI/2010 dated December 29, 2010 concerning Competence and Propriety Test (Fit and Proper Test) for Commercial Banks and Bank Indonesia Regulation Number 14/9/PBI/2012 dated July 26, 2012 concerning Competence and Propriety Test (Fit and Proper Test) for Rural Banks as well as Bank Indonesia Regulation Number 14/6/PBI/2012 dated June 18, 2012 concerning Competence and Propriety Test (Fit and Proper Test) for Sharia Banks and Sharia Business Units; and b. the consequences of the Competence and Propriety assessment results refer to the provisions in Financial Services Authority Regulation Number 27/POJK.03./2016 concerning Assessment of Competence and Propriety for Principal Parties of Financial Service Institutions.

3. Implementation provisions for:
   a. Bank Indonesia Regulation No. 12/23/PBI/2010 dated December 29, 2010 concerning Competence and Propriety Test (Fit and Proper Test); b. Bank Indonesia Regulation No. 14/9/PBI/2012 dated July 26, 2012 concerning Competence and Propriety Test (Fit and Proper Test) for Rural Banks; and
   c. Bank Indonesia Regulation Number 14/6/PBI/2012 dated June 18, 2012 concerning Competence and Propriety Test (Fit and Proper Test) for Sharia Banks and Sharia Business Units;
   remain in force insofar as they do not conflict with this Financial Services Authority Circular.

XV. CLOSING

The provisions in this Financial Services Authority Circular take effect on the date of determination.

Determined in Jakarta on September 13, 2016
EXECUTIVE HEAD OF BANKING SUPERVISOR
FINANCIAL SERVICES AUTHORITY, signed
NELSON TAMPUBOLON

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