(ENG Ver) POJK 35.POJK.05.2018 Tentang Penyelenggaraan Usaha Perusahaan Pembiayaan PDF

www.hukumonline.
com/pusatdata
REGULATION OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA

NUMBER 35/POJK.05/2018 OF 2018
ON
THE ORGANIZATION OF THE BUSINESS ACTIVITIES OF FINANCING COMPANIES
BY THE GRACE OF GOD ALMIGHTY
BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,
In consideration of:
a. That in order to take account of control and supervision tasks in the financial institutions sector as
referred to in the Article 8 and Article 9 of the Law Number 21 of 2011 on the Financial Services
Authority, the Financial Services Authority is authorized to establish the laws and regulations on the
financing companies;
b. That in order to enhance the active role of financing companies for the growth of national economy,
improve prudential control, and improve the customer protection, accordingly, it is necessary to
improve the provisions regarding the business implementation of financing companies;
c. That based on the consideration as referred to in letter a and letter b, it is necessary to establish the
Financial Services Authority Regulation on the Organization of the Business Activities of Financing
Companies.
In observation of:
Law Number 21 of 2011 on the Financial Services Authority (State Gazette of the Republic of Indonesia of
2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253).
HAS DECIDED:
To establish:
FINANCIAL SERVICES AUTHORITY REGULATION ON ORGANIZATION OF THE BUSINESS ACTIVITIES
OF FINANCING COMPANIES.
CHAPTER I
GENERAL PROVISIONS
Article 1
Under this Financial Services Authority Regulation, the following definitions are employed:
1. Financing Company shall be a business entity that finances the procurement of goods and/ or
services.
2. Investment Financing shall be a financing service of the capital goods required for the business/
investment activity, rehabilitation, modernization, expansion, and relocation of business/ investment
site, which shall be provided for the debtor.
1 / 75
www.hukumonline.com/pusatdata
3. Working Capital Financing shall be a financing service intended for the fulfilment of non-recurring
business expenses which must be spent off by the Debtor.
4. Multi-purpose Financing shall be a financing service for the procurement of goods and/ or services
required by the debtor for the consumption instead of business purpose or any other productive
activities within the agreed financing period.
5. Financial Leasing, hereinafter referred to as the Finance Lease, shall be a financing activity in the form
of procurement of goods by the Financing Company to be used by the debtor within the specific
duration of the lease, the activity of which is substantial assignment of benefit and risks over the
finance goods.
6. Sale and Leaseback shall be a financing activity in the form of selling an asset/ a particular good by
the debtor to the Financing companies while the Company leases the same asset/ goods back to the
same debtor.
7. Factoring shall be a financing activity in which one company sells its account receivables to the other
parties, along with the management of such account receivables.
8. Factoring with Recourse shall be a Factoring in which the seller of account receivables shall assume
all risks of non-collectable receivables, either partially or entirely, sold to the Finance Company.
9. Factoring with Recourse shall be a Factoring in which the seller of account receivables shall assume
the entire risks of non-collectable receivables sold to the Finance Company.
10. Instalment-based Financing shall be a financing activity of goods and/ or services purchased by the
debtor from the goods and/ or service provider under the scheme of instalment.
11. Project Financing shall be a financing service provided for the execution of a project which requires
various types of capital goods and/ or services related to the project.
12. Infrastructure Financing shall be a financing service of the goods and/ or services for the purpose of
infrastructure construction.
13. Working Capital Loan Facility shall be a financing services of the goods and/ or services directly
allocated to the debtor in order to finance its business needs or productive activity, the financing of
which shall be entirely spent off in one business cycle (non-revolving) of the debtor.
14. Fund Facility shall be a financing service for the procurement of goods and/ or services which is
directly allocated to the debtor for the consumption instead of business purpose or any other
productive activities within the agreed period.
15. Down Payment for the Vehicle Financing shall be a cash advance payment or down payment and the
fund of which shall be sourced/ provided by the debtor for the purpose of procurement of motor vehicle
under the scheme of Instalment-Based Financing.
16. Outstanding Principal shall be the aggregate amount of payable deducted by:
a. Unearned interest income; and
b. Other incomes and expenses related to the amortized financing transaction.
17. Non-Performing Financing Net, hereinafter abbreviated into NPF Net, shall be the total loan consisting
of the substandard, bad debt and non-performing debts, after deducted by the allowance for
substandard debt, bad debts and non-performing debts.
18. Ratio of Non-Performing Financing Net, hereinafter abbreviated into the Ratio of NPF Net shall be the
ratio between the NPF Net and total receivables financing.
19. Debtor shall be a business entity or legal person who obtains the financing service for the procurement
of goods and services from the Finance Company.
20. Financial Soundness Level shall be an appraisal result to the capital condition, quality of receivables
financing, liquidity, and performance of the Finance Company.
21. Paid-up capital shall be a paid-up capital for the Financing Company taking form of a limited liability
2 / 75
company or, principal savings and mandatory savings for the Financing Company taking form of
cooperative.
22. Equity shall be the total equity according to the Indonesian Financial Accounting Standards.
23. Board of Directors shall be a company organ having authority and responsibility over the company
management for the purpose of company’s interest pursuant to the purpose and objectives of the
company, and representing the company, either before or outside the court pursuant to the provisions
as set out under the Articles of Incorporation of the Financing Company which takes form of a limited
liability company or a managerial body as set out under the prevailing laws and regulations in the
cooperative sector, applicable for the Financing Company taking form of cooperative.
24. Board of Commissioners shall be a Company Organ having function to conduct supervision, either in
general and/ or particular manners, pursuant to the Articles of Incorporation and to provide an advice
for the Board of Directors for the Financing Company taking form of a limited liability company or, the
Board of Commissioners as set out under the prevailing laws and regulations in the cooperative sector
for the Financing Company taking form of cooperative.
25. Maximum Financing Limit (BMPP) shall be a specific limit in the financing allowed by this Financial
Services Authority Regulation.
26. Certification Agency, shall be a professional certification agency having obtained a license from the
authorized government institution to grant a license to the professional certification agency in
Indonesia.
CHAPTER II
BUSINESS ACTIVITY
Division One
Type of Business Activity and Financing Scheme
Article 2
(1) The Finance Company’s business activities include:
a. Investment financing;
b. Working Capital Financing;
c. Multipurpose financing; and / or
d. Other financing business activities based on the approval of the Financial Services Authority.
(2) In addition to the business activities as referred to in Paragraph (1), the Financing Company can
perform operating leases and/or fee-based services to the extent that it is not contrary to the
provisions of laws and regulations in the financial services sector.
Article 3
Investment Financing activities as referred to in the Article 2 Paragraph (1) letter a and /or Working Capital
Financing as referred to in the Article 2 Paragraph (1) letter b shall be intended for the Debtor, who:
a. has a productive business; and/or
b. has the idea for the growth of productive business.
Article 4
3 / 75
(1) Investment financing as referred to in the Article 2 Paragraph (1) letter a shall channeled through the
following schemes:
a. Lease Financing;
b. Sale and Lease-Back;
c. Factoring with Recourse;
d. Factoring without Recourse;
e. Installment Based Financing;
f. Project Financing;
g. Infrastructure Financing; and / or
h. Other financing after prior approval from the Financial Services Authority.
(2) Working Capital Financing as referred to in the Article 2 Paragraph (1) letter b shall be done by:
a. Sale and Lease-Back;
b. Factoring with Recourse;
c. Factoring without Recourse;
d. Working Capital Loan Facility; and / or
e. Additional financing after prior approval from the Financial Services Authority.
(3) Multipurpose financing as referred to in the Article 2 Paragraph (1) letter c shall be done by:
a. Lease Financing;
b. Installment Based Financing;
c. Funding Facility; and/or
d. Other financing after prior approval from the Financial Services Authority.
Article 5
(1) Financing Company which will conduct business activities other financing as referred to in the Article 2
Paragraph (1) letter d and the way other financing as referred to in the Article 4 Paragraph (1) letter h,
Paragraph (2) letter e, and Paragraph (3) letter d shall meet the following requirements:
a. plans to conduct other financing business and other financing methods disclosed in the
Company's business plan financing;
b. The Soundness Level is classified as sound at the minimum;
c. have at least low risk level;
d. comply with the gearing ratio;
e. have at least Rp200.000.000.000,00 Equity (two hundred billion rupiah); and
f. is not subject to administrative sanctions by the Financial Services Authority.
(2) Financing Company which will conduct other financing service or other financing scheme as referred
to in Paragraph (1) shall apply to the Financial Services Authority and must attach a document
containing a minimum information as follow:
a. products to be marketed;
b. analysis of business prospects;
c. mechanism or how the financing will be done;
4 / 75
d. the rights and obligations of the parties; and

e. example financing agreement that will be used.
(3) Financial Services Authority shall give an approval, request documents, or rejection of the application
as referred to in Paragraph (2) within a maximum period of 20 (twenty) business upon the receipt of
such application.
(4) In giving the approval, request documents, or refusal as referred to in Paragraph (3), the Financial
Services Authority will perform:
a. analysis of the documents as referred to in Paragraph (2);
b. analysis of compliance with the provisions in the Financial Services Authority's Regulations; and
c. feasibility analysis business activities of other financing or other financing scheme proposed.
(5) Board of Directors shall submit the documents as referred to in Paragraph (2) in no later than 20
(twenty) business days from the date of request documents from the Financial Services Authority.
(6) In the event that the Board of Directors has submitted the documents as referred to in Paragraph (5),
the Financial Services Authority approval or rejection in accordance with the provisions as referred to
in Paragraph (3).
(7) If, within 20 (twenty) working days from the date of the request the documents as referred to in
Paragraph (5), the Financial Services Authority has not received a response to the request the
documents in question, the Board of Directors considered canceling the application for approval to
perform business activities other funding or ways of financing other.
(8) In the case of an application for approval to perform business activities other financing or other
financing means as referred to in Paragraph (3) is approved, the decision establishes the Financial
Services Authority approval to conduct business activities other financing or other financing means to
financing companies.
(9) In terms of the Financial Services Authority rejected the application for approval to perform business
activities other financing or other financing means as referred to in Paragraph (3), the rejection shall
be in writing and accompanied by reasons for the refusal.
Article 6
(1) Financing Company which will conduct fee-based service as referred to in the Article 2 Paragraph (2)
shall report to the Financial Services Authority to attach at least on:
a. a description of the reward-based products to be marketed;
b. a description of the marketing mechanism;
c. a description of the rights and obligations of the parties;
d. draft cooperation agreement; and
e. photocopying license from the competent authority (if any).
(2) In terms of the Financial Services Authority has received the report as referred to in Paragraph (1) is
complete, the Financial Services Authority will issue a record of fee-based service in the administration
of the Financial Services Authority not later than 20 (twenty) working days from receipt of the report.
(3) If within the period as referred to in Paragraph (2), the Financial Services Authority does not issue a
letter of registration, financing companies can carry out fee-based service as referred to in Paragraph
(1).
Article 7
Financing Company shall clearly specify the business activities as referred to in the Article 2 in the bylaws.
5 / 75
Division Two
Lease Financing
Article 8
(1) Lease as referred to in the Article 4 Paragraph (1) letter a in the provision of goods by financing
companies to be used by the Debtor for a specified period, which transfer substantially the benefits
and risks of the goods financed.
(2) In the event that the agreement is still valid Lease, ownership of goods Lease transaction objects that
are in the Finance Company.
Article 9
(1) Financing Company shall make a Paragraph in financing agreements that the Debtor is prohibited to
sub-lease back goods leased to other parties.
(2) During the period Lease, Financing Company shall attach plaques or labels on the goods-hired by
indicating the name and address of Financing Company and a statement that the goods in question
are in an agreement Lease.
Division Three
Factoring
Article 10
(1) Financing Company are prohibited from conducting Factoring with Recourse for a period of trade
receivables more than 10 (ten) years.
(2) Financing Company are prohibited from conducting Factoring without Recourse for a period of trade
receivables more than 2 (two) years.
(3) Financing Company are prohibited from conducting Factoring with Recourse with other financing
companies as Debtor.
Division Four
Installment Based Financing
Article 11
In the case of purchase by installment payments are intended for the procurement of goods, the ownership
of financed object in the agreement shall be transferred from providers of goods to the Debtor.
Division Five
Project financing
Article 12
Investment financing by way of project financing can only be done by using one or more of the financing
6 / 75
schemes as referred to in the Article 4 Paragraph (1) letter a to letter e.
Division Six
Infrastructure financing
Article 13
(1) Financing Companies which perform Investment Financing through Infrastructure Financing
Investment shall meet the following requirements:
a. plans to conduct business in a manner Investment Financing Infrastructure Financing has been
included in the business plan Finance Company;
b. the soundness level is classified as sound at the minimum;
c. have a minimum risk level is low;
d. has a greater equity of 1,000,000,000,000.00 (one trillion rupiahs);
e. had standard surgery and related procedures Infrastructure Financing; and
f. is not subject to administrative sanctions by the Financial Services Authority.
(2) Infrastructure Financing Investment can only be done by using one or more of the financing as
referred to in the Article 4 Paragraph (1) letter a to letter e.
Division seven
Business Capital Facilities and Funding Facility
Article 14
(1) Business Capital Facility as referred to in the Article 4 Paragraph (2) d is channeled by providing
facility to finance the procurement of goods and/or services required by the Debtor from providers of
goods and/or services.
(2) Financing Company shall state the purpose of goods and/services procurement as referred to in
Paragraph (1) in a financing agreement with the Debtor.
(3) Financing Company must obtain proof of payment of the purchased goods and/or services by the
Debtor to providers of goods and/or services within the following time period at the latest:
a. 3 (three) months from the date of signing of the financing agreement; or
b. in accordance with the timeframe agreed in the financing agreement, whichever is shorter.
Article 15
(1) Funding Facility as referred to in the Article 4, Paragraph (3) c is channeled by providing the financing
facility to purchase consumptive goods and/or services based on the needs of the Debtor from the
provider of goods and/or services.
(2) Financing Company shall state the purpose of the purchase of goods and/or services as referred to in
Paragraph (1) in a financing agreement with the Debtor.
(3) Financing Company must obtain proof of payment of the purchased goods and/or services by the
Debtor to providers of goods and/or services within the following time period at the latest:
a. 3 (three) months from the date of signing of the financing agreement; or
7 / 75
b. in accordance with the timeframe agreed in the financing agreement, whichever is shorter.
Article 16
(1) To be able to provide Working Capital Financing by way of Venture Capital and Financing Facility
Multipurpose through Fund Facility, Financing Company shall meet the following requirements:
a. Financial Soundness have the minimum conditions of sound;
b. have a level of risk with low or medium low condition;
c. comply with capital ratios; and
d. comply with the gearing ratio.
(2) Working Capital Financing receivables by way of Venture Capital and Financing Facility Multipurpose
must not reach more than 25% (twenty five percent) compared to the total financing receivables.
(3) An assessment of the fulfillment of the requirements for financing companies who perform activities in
a manner Working Capital Financing under the scheme of Working Capital Financing and
Multipurpose Financing under Funding Facility as referred to in Paragraph (1) is calculated based on
the monthly report as of June 30 and December 31.
(4) Implementation on fulfillment of the requirements for financing companies as referred to in Paragraph
(3) entered into force on August 1 or February 1 for a period of 6 (six) months.
(5) In the case of financing companies do not meet the requirements as referred to in Paragraph (1)
based on the reporting period given month, the financing through the activities of Working Capital
Financing by way of Working Capital Financing and Multipurpose Financing under Funding Facility
which has been distributed by financing companies in the period when the Company Funding meet the
requirements can still be continued until the expiry of the financing agreement.
Article 17
Working Capital Financing through provision of working capital facility and Multipurpose Financing through
Fund Facility must meet the following requirements:
a. The financing amount for each Debtor shall amount Rp500,000,000 (five hundred million rupiah).
b. collateral in the form of vehicles, land, buildings, and/or heavy equipment;
c. Debtor Worthiness should be done through the credit information management agencies to obtain a
license from the Financial Services Authority; and
d. feasibility analysis Debtor payment capability.
CHAPTER III
INFORMATION SYSTEMS AND TECHNOLOGY
Article 18
(1) Financing Company shall have integrated system information and technology.
(2) The obligation as referred to in Paragraph (1) shall apply to financing companies that have branch
offices more than 5 (five).
Article 19
(1) Financing Company may conduct its business activities by utilizing information technology.
8 / 75
(2) To be able to conduct business by utilizing information technology as referred to in Paragraph (1),
financing companies shall meet the following requirements:
a. have a standard operating procedure / standard operating procedure (SOP) related to business
activities by utilizing information technology;
b. human resources with expertise and / or a background in information technology;
c. data centers and disaster recovery centers are located in Indonesia; and
d. have a reliable and secure information technology systems.
CHAPTER IV
DOWN PAYMENT FOR THE VEHICLE FINANCING
Article 20
(1) Financing Company with the minimum Financial Soundness Level is in health condition and have
Neto NPF ratio value for motor vehicle financing is lower than or equal to 1% (one percent) may
implement the following Advance Financing provisions to the Debtor of Motor Vehicles:
a. for two, three, or more wheel motor vehicles, as low as 0% (zero percent) of the selling price of
the vehicle in question;
b. for four-or more wheel motor vehicle used for Investment Financing, as low as 0% (zero
percent) of the selling price of the vehicle in question; or
c. for four-or more wheel motor vehicle used of multipurpose financing, as low as 0% (zero
percent) of the selling price of the vehicle in question.
Neto NPF ratio value for vehicle financing is higher than 1% (one percent) and lower than or equal to
3% (three percent) must implement the following Advance Financing provisions to Debtor:
a. for two, three, or more wheel motor vehicles, as low as 10% (ten percent) of the selling price of
the vehicle in question;
b. for four-or more wheel motor vehicle used for Investment Financing, as low as 10% (ten
c. for four-or more wheel motor vehicle used of multipurpose financing, as low as 10% (ten
Neto NPF ratio value for vehicle financing is higher than 3% (three percent) and lower than or equal to
5% (five percent) must implement the following Advance Financing provisions to Debtor:
a. for two, three, or more wheel motor vehicles, as low as 15% (fifteen percent) of the selling price
of the vehicle in question;
b. for four-or more wheel motor vehicle used for Investment Financing, as low as 15% (fifteen
c. for four-or more wheel motor vehicle used of multipurpose financing, as low as 15% (fifteen
(4) Financing Company that do not comply with the minimum health condition for their Financial
Soundness Level and Neto NPF ratio value for motor vehicle financing is lower than or equal to 5%
(five percent) must implement the following the Motor Vehicle Financing Advances provisions to
Debtor:
a. for two, three, or more wheel motor vehicles, as low as 15% (fifteen percent) of the selling price
9 / 75

b. for four-or more wheel motor vehicle used for Investment Financing, as low as 15% (fifteen
c. for four-or more wheel motor vehicle used of multipurpose financing, as low as 20% (twenty
(5) Financing Company with Neto NPF ratio value for motor vehicle financing is lower than or equal to 5%
(five percent) must implement the following Motor Vehicle Financing Advance provisions to Debtor as:
a. for two, three, or more wheel motor vehicles, as low as 20% (twenty percent) of the selling price
b. for four-or more wheel motor vehicle used for Investment Financing, as low as 20% (twenty
c. for four-or more wheel motor vehicle used of multipurpose financing, as low as 25% (twenty five
(6) four-or more wheel motor vehicle which is used for Investment Financing as referred to in Paragraph
(1) letter b, Paragraph (2) b, Paragraph (3) b, Paragraph (4) b, and Paragraph (5) letter b shall meet at
least the following criteria:
a. the transport of persons or goods vehicle which has a license issued by the authorities to
conduct certain business activities; or
b. filed by a natural person or legal entity that has a specific license from the authorities and used
for business activities relevant to the license owned businesses.
(7) Vehicle financing which is granted to Debtor Financing Company under the vehicle ownership program
with another corporation is exempt from the obligation to apply the Advances Financing provision to
Debtor as referred to in Paragraph (1) through (5).
(8) Vehicle ownership program as referred to in Paragraph (7) shall be drawn up in the cooperation
agreement between the Financing Company with the corporation that could provide certainty of
uncollectible receivables upon the financing facility.
(9) Certainty of uncollectible receivables financing as referred to in Paragraph (8) may be the presence of:
a. repayment through payroll deduction mechanism of corporate employee in question; and
b. guarantees for receivables financing.
Article 21
(1) Advance Financing scale application of motor vehicles as referred to in the Article 20 (1) through (5) is
calculated based on the monthly report as of June 30 and December 31.
(2) Advance Financing scale application of motor vehicles as referred to in the Article 20 (1) through (5)
entered into force on 1 August or first of February for a period of 6 (six) months.
(3) The calculation Advance Financing of motor vehicles as referred to in the Article 20 (1) through (5)
shall apply to the selling price of the vehicle minus a discount (discount) and other pieces.
(4) The calculation Advance Financing of motor vehicles as referred to in the Article 20 (1) through (5)
excluding the first installment, survey fees, commission, insurance, guarantees, imposition of
collateral, notary, and / or other expenses.
(5) The cost of incentives provided by the Financing Company to third parties related to the acquisition
financing cannot be taken into account in the calculation of the amount of the Motor Vehicle Financing
Advance as referred to in the Article 20 (1) through (5).
10 / 75
CHAPTER V
LIMITATION OF THIRD-PARTY INCENTIVES
Article 22
(1) Financing Company are prohibited from providing acquisition financing incentive fees to third parties
for more than 17.5% (seventeen-point five percent) of the revenue to be received related to the
financing of each financing agreement.
(2) Revenue to be received relating to the financing as referred to in Paragraph (1), comprising:
a. interest income before taking into account the cost of funds;
b. income insurance discounts and / or guarantee;
c. revenue administration; and
d. provision income.
CHAPTER VI
MAXIMUM FINANCING LIMIT
Article 23
(1) Financing Company must comply with all relevant parties BMPP with the highest percentage of 50%
(fifty percent) of the Equity of the Finance Company.
(2) Equity calculation basis in calculating BMPP as referred to in Paragraph (1) is the equity in the last
monthly report before the finance portfolio financing companies do.
(3) If the Financing Company to obtain a license for less than 1 (one) month, the calculation basis of the
equity in calculating BMPP as referred to in Paragraph (1) will be the equity in the financial statements
submitted at the time of application for a license.
(4) Related parties as referred to in Paragraph (1) shall include:
a. individual or entity exercising control Finance Company;
b. business entities in which the Company acts as a controller Financing;
c. An individual or entity that exercises control of the business entity as referred to in point b;
d. business entities that control is done by:
1. individuals and / or entities as referred to in letter a; or
2. individuals and / or entities as referred to in letter c;
e. Board of Commissioners or Board of Directors on Corporate Financing;
f. parties who have a family relationship to the second degree, both horizontally and vertically:
1. from an individual who is the controlling company is financing as referred to in Paragraph
a; and / or
2. of the Board of Commissioners or Board of Directors on the Company's financing as
referred to in the letter e;
g. commissioners or directors of the entities as referred to in letter a through letter d;
h. business entity, the board or the board of directors are:
1. Board of Commissioners or Board of Directors on Corporate Financing; or
11 / 75
2. commissioners or directors of the entities as referred to in letter a through letter d;

i. business entities in which:
1. Board of Commissioners or Board of Directors on the Company's financing as referred to
in letter e exercises control; or
2. commissioners or directors of the parties as referred to in letters a through d, acts as a
controller; and
j. entity that has a financial dependency (financial interdependence) with Financing Company
and/or the parties as referred to in letters a through letter i.
(5) Financing Company is required to hold and administer a detailed list of related parties as described in
Paragraph (4).
Article 24
(1) Financing Company shall comply with the provisions of BMPP to 1 (one) The debtor who is not a
related party as defined in the Article 23 Paragraph (4) shall be a maximum of 20% (twenty percent) of
the Equity Finance Company.
(2) Financing Company shall comply with the provisions of BMPP to 1 (one) Debtor group that is not a
related party as defined in the Article 23 Paragraph (4) is set at 50% (fifty percent) of the Equity
Finance Company.
(3) Equity calculation basis in calculating BMPP as referred to in Paragraph (1) and (2) is the equity in the
last monthly report before the finance portfolio financing companies do.
(4) If the Financing Company to obtain a license for less than 1 (one) month, the calculation basis in
calculating BMPP Equity as referred to in Paragraph (1) and (2) is equity in the financial statements
submitted at the time of application for a license.
(5) Debtor classified as a member of a group of debtor as referred to in Paragraph (2) in the event the
debtor has a controlling relationship with another debtor either through ownership, management, and /
or finance, which includes:
a. The debtor is the controlling another debtor;
b. 1 (one) the same party is the controlling of several Debtor (common ownership);
c. The debtor has the financial dependency (financial interdependence) with another debtor;
d. Debtor issuing a guarantee (guarantee) to take over and/or pay off some or all of the other
debtor liabilities in the event that other debtor fails to fulfill its obligations (default) to the Finance
Company; and/or
e. commissioners and/or directors of the Debtor became commissioners and/or directors in other
Debtor.
Article 25
BMPP provisions as referred to in the Article 23 Paragraph (1), and Article 24 Paragraph (1) and (2) shall not
apply to the financing for the procurement of goods and / or services in the government program.
CHAPTER VII
FINANCING RISK MITIGATION
Article 26
12 / 75
(1) Financing Company is obligated to mitigate financing risk.

(2) Risk mitigation financing as referred to in Paragraph (1) can be done by:
a. risk transfer mechanisms of financing through credit insurance or credit insurance in accordance
with the provisions of the legislation;
b. transferred the risk on collateral from financing activities through insurance mechanisms; and /
or
c. charge fiduciary, mortgage, or hypothetic on the collateral of financing activities.
Article 27
(1) Financing Company that mitigate risk by risk aversion as referred to in the Article 26 Paragraph (2)
letter a must use an insurance company or a guarantor who meets the following conditions:
a. have obtained an operating license from the Financial Services Authority; and
b. is not currently being imposed with administrative sanctions such as restrictions on business
activities or suspension of business activity from the Financial Services Authority.
(2) Insurance coverage period of credit or credit guarantees as referred to in the Article 26 Paragraph (2)
a minimum equal to the term of the financing.
Article 28
(1) Financing Company in mitigating the risks through risk transfer as referred to in the Article 26
Paragraph (2) letter b shall use the insurance companies that meet the following conditions:
a. have obtained an operating license from the Financial Services Authority; and
b. not in the imposition of administrative sanctions such as restrictions on business activities of the
Financial Services Authority.
(2) Duration of insurance coverage as referred to in the Article 26 Paragraph (2) b minimum equal to the
term of the financing.
Article 29
(1) Financing Company that mitigates risks through credit guarantee, credit insurance, and/or insurance
on the financed object, insurance claims shall take into account credit, credit insurance claims, and / or
insurance claim on collateral in settlement of accounts receivable.
(2) In the event there are excess proceeds of insurance claims against the Debtor liability, Financing
Company shall reimburse the excess of the proceeds of insurance claims to the debtor in accordance
with the term of the financing agreement.
Article 30
(1) Financing Company that mitigates risk by the imposition of fiduciary as referred to in the Article 26
Paragraph (2) c shall register fiduciary as referred to in the registration office, in accordance with the
laws and regulations regarding fiduciary.
(2) Registration of fiduciary obligations as referred to in Paragraph (1) shall also apply to financing
companies that do the financing with the imposition of fiduciary financed using the cooperation
mechanisms in the form of financing forwarding financing (channeling) or co-financing (joint financing).
Article 31
13 / 75
Financing Company that do the financing with the imposition of fiduciary must register fiduciary as defined in
the Article 30 on fiduciary registration office no later than 1 (one) month from the date of the financing
agreement.
Article 32
Financing Company that mitigate risk by loading encumbrance or mortgage as referred to in the Article 26
Paragraph (2) c shall comply with the provisions of the loading with mortgage collateral and a mortgage in
accordance with the legislation on the rights of dependents and mortgage.
CHAPTER VIII
TRANSPARENCY OF BUSINESS
Division One
Financing Agreement
Article 33
(1) The entire financing agreement between the Debtor Financing Company shall be made in writing.
(2) Financing agreement between the Debtor Financing Company must comply with drafting the
agreement as stipulated in the Financial Services Authority on consumer protection financial services
sector.
Article 34
(1) Financing agreement as referred to in the Article 33 shall at least contain:
a. types of business activities and ways of financing;
b. number and date of the financing agreement;
c. the identity of the parties, including others who do the same work with a Financing Company (if
any);
d. financed goods or services;
e. purpose of financing;
f. the value of the goods or services financed;
g. the amount of financing receivables and the payment amount;
h. financing period;
i. interest rate financing;
j. collateral including proof of ownership of the collateral deposit (if any);
k. breakdown of costs associated with the financing consists of:
1. survey costs (if any);
2. insurance costs (if any);
3. a guarantee fee (if any);
4. the cost of loading the collateral; (If there is);
5. facility fees (if any);
14 / 75
6. notary fees (if any); and / or

7. Additional fees (if any);
l. Inclusion of clear paragraph on the imposition of fiduciary, mortgage, or hypothetic collateral, if
there is collateral in financing activities;
m. mechanism in case of disputes and the selection of the settlement of disputes;
n. provision of demand in case of default Debtor;
o. provision of execution of collateral in the case of default by Debtor;
p. conditions of sale of collateral in case of default Debtor (if any);
q. provisions regarding the settlement of accounts receivable financing mechanism and refund the
excess of the proceeds from the sale of collateral or insurance claim is accompanied by a
period of time in terms of financing companies to mitigate the risk of the procedure as referred
to in the Article 26 Paragraph (2) b and c;
r. illustration principal division of financing receivables, interest and principal outstanding
financing;
s. provisions regarding the rights and obligations of the parties; and
t. provisions on penalties.
(2) In the case of financing companies is financing the procurement of motor vehicles by way of purchase
by installment payment basis, the financing agreement is required to include the value of the advance.
(3) In the case of financing companies financing by way of Lease Financing, the financing agreement is
required to include the value of a security deposit (security deposit).
Article 35
Financing Company shall submit a copy of the financing agreement to the Debtor no later than three (3)
months from the date of the financing agreement.
Article 36
Financing Company shall put a notice in the head office, branches and offices in addition to the branch office
informing the Debtor and Debtor candidates to read and understand the contents of the contract set out in
the financing agreement.
Division Two
Transparency and Penalty Interest Rate
Article 37
Financing Company is required to include a description/information regarding the interest rate financing
clearly in each headquarters, branch offices, in addition to the branch office, and the website (website)
Finance Company.
Article 38
(1) Financing Company must explain the calculation of the principal illustration finance receivables and
interest over the term of the financing as well as the imposition of fines and fees illustration collateral in
case of default Debtor to the Debtor prior to signing of the financing agreement.
15 / 75
(2) Explanation illustration to the Debtor as referred to in Paragraph (1) shall be set out in a document
signed by the Debtor.
CHAPTER IX
COOPERATION FINANCING
Article 39
(1) In carrying out business activities as referred to in the Article 2, financing companies can work together
with other parties through forwarding financing (channeling) or co-financing (joint financing).
(2) Financing Company cooperation with other parties through forwarding financing (channeling) or co-
financing (joint financing) as referred to in Paragraph (1) shall be conducted in accordance with the
provisions of the legislation governing each party.
(3) Financing Company are prohibited from financing cooperation with other parties through forwarding
with guaranteed financing schemes (channeling with recourse) and financing together with guarantees
(joint financing with recourse).
(4) Third party as referred to in Paragraph (1) shall include:
a. bank;
b. secondary mortgage company;
c. microfinance institutions;
d. Finance Company;
e. Companies borrowing money service providers based on information technology;
f. venture capital firms; and/or
g. other institutions under the provisions of the legislation allowed for cooperation financing
through financing schemes forwarding (channeling) and co-financing (joint financing).
(5) In cooperation as referred to in Paragraph (2), financing companies shall cooperate with banks,
microfinance institutions, financing companies, company service providers borrowing money based on
information technology, and/or venture capital firms that have been licensed or registered at the
Article 40
(1) Financing Company can only do forwarding financing (channeling) as referred to in the Article 39
Paragraph (1) if the risks arising from this activity is the owner of the funds.
(2) In forwarding financing (channeling), the beneficiary only act as a manager and obtaining payment
from the fund management.
Article 41
(1) Financing Company can only do co-financing (joint financing) as referred to in the Article 39 Paragraph
(1), if the source of funding is derived from financing companies and other parties.
(2) Risks arising from co-financing (joint financing) as referred to in Paragraph (1) shall be borne each
party in proportion to the amount of funds expended.
Article 42
16 / 75
In cooperation financing through financing forwarding (channeling) and / or co-financing (joint financing),
financing companies are required to have an adequate information system and technology to ensure data
consistency between the Debtor owned by financing companies and other parties as referred to in the Article
39 Paragraph (4).
CHAPTER X
MAINTENANCE AND RETURN PROOF OF OWNERSHIP OF THE COLLATERAL
Article 43
(1) In the case of financing companies to channel financing funds originate apart from financing
cooperation forwarding (channeling) and / or co-financing (joint financing) Financing Company shall
keep and maintain document proof of ownership of the collateral at the central office and / or branch
offices Financing Company up with the financing agreement expires.
(2) Financing Company shall have written guidelines in the storage and maintenance of proof of
ownership of the collateral.
(3) Financing Company is obligated to mitigate the risks of storage and maintenance of the proof of
ownership of the collateral.
(4) In terms of the Financial Services Authority considers that the financing companies do not have a
storage area proof of ownership of collateral that meet the safety standards required proof of
ownership of the collateral deposited at deposit (custodian).
Article 44
(1) Financing Company that perform distribution of funding through financing forwarding (channeling)
and / or co-financing (joint financing), shall ensure the storage and maintenance of the proof of
ownership of collateral is done by:
a. owner of the funds;
b. deposited at deposit (custodian); and/or
c. Financing Company with the consent of the owner of the funds.
(2) The provisions as referred to in the Article 43 Paragraph (2) to Paragraph (4), shall apply mutatis
mutandis financing companies that perform proof of ownership of the collateral deposit made by the
Company based on the fund owners financing as referred to in Paragraph (1) letter c.
Article 45
(1) Financing Company are prohibited from pledging and/or use physical evidence of ownership as
collateral to another party.
(2) Financing Company is prohibited use the receivable value of 1 (one) Debtor as collateral to more than
1 (one) party that provided loans to the financing companies.
Article 46
(1) Financing Company shall give notice to the Debtor relating to the return of proof of ownership of the
collateral no later than 1 (one) month from the date of settlement of accounts receivable financing.
(2) Based on the information as referred to in Paragraph (1), financing companies must return the proof of
ownership and/or documents related to the collateral no later than 1 (one) month since there is a
demand from the Debtor.
17 / 75
CHAPTER XI
BILLING
Article 47
(1) In the event of default Debtor Financing Company shall collect, at least by giving warning letter over
the term of the financing agreement.
(2) Warning letter as referred to in Paragraph (1) shall at least contain the following information:
a. the number of days of late payment obligations;
b. outstanding principal payable;
c. interest payable; and
d. fines owed.
Article 48
(1) Financing Company may cooperate with the other party to perform billing functions to Debtor.
(2) Financing Company are required to incorporate cooperation with other parties as referred to in
Paragraph (1) in the form of duly stamped written agreement.
(3) Cooperation with other parties as referred to in Paragraph (1) shall meet the following requirements:
a. the other party is a legal entity;
b. The other party has permission from the competent authority; and
c. The other party has the human resources that are certified in the field of collection of the
Professional Certification Agency in the field of finance.
(4) Financing Company shall be responsible for any impact of cooperation with other parties as referred to
in Paragraph (1).
(5) Financing Company shall conduct regular evaluation in cooperation with other parties as referred to in
Paragraph (1).
Article 49
(1) Financing Company shall have internal guidelines regarding the execution of collateral.
(2) Financial Services Authority is authorized to request the financing companies to adjust their internal
guidelines regarding the execution of collateral.
(3) Financing Company shall adjust internal guidelines regarding the disposal of collateral by the Financial
Services Authority request as referred to in Paragraph (2).
Article 50
(1) Collateral by the financing companies must fulfill the following conditions:
a. Proven debtor defaults;
b. The debtor has been given a warning letter; and
c. Financing Company have fiduciary insurance certificate, a certificate of mortgage, and / or a
mortgage certificate.
18 / 75
(2) Collateral as referred to in Paragraph (1) shall be implemented in accordance with the provisions of
the legislation governing the respective collateral.
(3) Collateral as referred to in Paragraph (1) shall be set within minutes of execution of collateral.
(4) In case of any collateral, financing companies must explain to Debtor information about:
a. outstanding principal payable;
b. interest payable;
c. fines payable;
d. costs associated with the execution of the collateral; and
e. mechanisms sale of collateral in the case of the Debtor not fulfilled its obligation.
Article 51
(1) In case after all the collateral is executed and the Debtor is unable to complete the obligation within a
certain timeframe, financing companies may only:
a. sale of collateral through public auction and take the settlement receivables from the sale; and /
or
b. sale of collateral privately based on a price agreement Financing Company and the Debtor
before the collateral is sold.
(2) Sales execution as referred to in Paragraph (1) letter b shall be made after the expiration of 1 (one)
month since notified in writing by the Debtor Financing Company and published in at least two (2)
newspapers circulating in the area concerned.
Article 52
Financing Company shall reimburse the excess of the proceeds from the sale of collateral through public
auction as referred to in the Article 51 Paragraph (1) letter a or sale of collateral privately as referred to in the
Article 51 Paragraph (1) b to the Debtor within the period in accordance with the financing agreement.
CHAPTER XII
FRAUD CONTROL AND ANTI-FRAUD STRATEGY
Division One
Controlling Fraud
Article 53
(1) Financing Company shall implement fraud controls.
(2) Control of fraud as referred to in Paragraph (1) shall include the following aspects:
a. active monitoring of management;
b. organizational structure and accountability;
c. control and monitoring; and
d. education and training.
19 / 75
Article 54
Active surveillance management as referred to in the Article 53 Paragraph (2) a least include:
a. overall control of fraud committed by the Board of Directors in performing duties, powers, and
responsibilities;
b. authority, duties, and responsibilities in controlling fraud generally includes:
1. cultural development and concern for the anti-fraud at all levels of the organization, at least to
perform:
a) declare the anti-fraud provisions; and
b) adequate communication to all levels of the organization about the company's behavior
including fraud measures:
2. preparation and supervision of the implementation of the code of conduct in fraud prevention for
all levels of the organization;
3. preparation and supervision of the implementation of anti-fraud strategy;
4. the quality of human resource development (HRD), in particular related to the increase
awareness and fraud control;
5. monitoring and evaluation of the incidence of fraud and the establishment of follow-up; and
6. development of effective internal communication channels in the Financing companies
throughout the organization in order to understand and comply with policies and procedures,
including policies on fraud control; and
c. The Board of Commissioners is responsible for periodical monitoring of controls fraud.
Article 55
(1) In the application aspects of organization and accountability structure as referred to in the Article 53
Paragraph (2) b, Financing Company shall establish a unit or function in charge of the control of fraud
in the organization of financing companies.
(2) Formation units or functions as referred to in Paragraph (1) at least meet the following criteria:
a. organizational structure adapted to the characteristics and complexity of business activities
Finance Company;
b. determination of job descriptions and responsibilities are clear;
c. The liability unit or function directly to the chief executive or equivalent in Financing companies
as well as communication and reporting directly to the Board of Commissioners; and
d. execution of tasks on the unit or the function is carried out by human resources (HR) has the
competence, integrity, and independence, and supported with clear accountability.
Article 56
(1) Financing Company shall exercise control and monitoring fraud as referred to in the Article 53
Paragraph (2) c to increase the effectiveness of the internal control system.
(2) Measures in the control and monitoring of fraud as referred to in Paragraph (1) must at least covers:
a. establishment of control policies and procedures specifically intended to control fraud;
b. control through the review by the management (top-level review) and review of operational
(functional review) by internal audit on the implementation of anti-fraud strategy;
c. control in the field of human resources (HR) aimed at increasing the effectiveness of the
20 / 75
implementation of tasks and fraud control;

d. determination of the separation of functions in the implementation of the activities of financing
companies at all levels of the organization, such as the separation of functions between the
parts that make the process of acceptance, claims, and finance with the aim that every party
involved in the activity does not have the opportunity to commit and conceal fraud;
e. management information system to support the processing, storage, and security of electronic
data to prevent potential fraud; and
f. Other control in fraud control such as control of physical assets and documentation.
Article 57
(1) In the application of aspects of education and training as referred to in the Article 53 Paragraph (2) d,
financing companies are required to have a plan of education and training for staff involved in the
implementation of anti-fraud strategy.
(2) Education and training plan as referred to in Paragraph (1) at least includes:
a. education and training tailored to the needs and complexity of Financing companies Financing
Company business organizations; and
b. phase and the operational time of at least 1 (one) time in 1 (one) year.
Division Two
Anti-Fraud Strategy
Article 58
(1) Financing Company are required to apply anti-fraud strategy that includes:
a. prevention;
b. detection;
c. investigation, reporting and penalties; and
d. monitoring, evaluation, and follow-up.
(2) Implementation of anti-fraud strategy carried out against those involved in the financing of business
activities at least include:
a. Debtor;
b. The company's internal financing; and
c. others who work with financing companies.
Article 59
(1) Application of anti-fraud strategy as referred to in the Article 58 Paragraph (1) shall be set out in the
guidelines as a reference for financing companies to implement anti-fraud strategy.
(2) In preparing the anti-fraud strategy guidelines as referred to in Paragraph (1), financing companies
must consider at least the following matters:
a. internal and external environmental conditions;
b. the complexity of business activities;
c. potential, types, and the risk of fraud; and
21 / 75
d. the adequacy of the resources needed.
Article 60
Preventive measures to reduce the possible risk of fraud as referred to in the Article 58 Paragraph (1) letter a
must at least include:
a. anti-fraud awareness, which include:
1. the preparation and dissemination of anti-fraud statement;
2. employee awareness program; and
3. customer awareness programs;
b. vulnerability identification, which includes:
1. the process of identification, analysis, and assess any activities that could potentially harm
Financing Company Finance Company;
2. identification document and inform the results to concerned parties; and
3. updating information on the activities considered particularly high risk of fraud; and
c. know your employee, which include:
1. system and effective recruitment procedures;
2. selection systems include the right qualifications to consider the risks, and determined
objectively and transparently; and
3. policies recognize employees (know your employee).
Article 61
Detection as referred to in the Article 58 Paragraph (1) letter b is an activity in identifying and finding
incidence of fraud which cover, at least:
a. whistleblowing policies and mechanisms that are clearly defined, easy to understand, and can be
effectively implemented, which must at least cover:
1. protection to whistleblowers and ensure the confidentiality of the identity of the reporting and
fraud reports submitted;
2. prepare internal regulations related to fraud complaints with reference to the provisions of the
legislation; and
3. prepare fraud reporting system which shall contain:
a) reporting procedures;
b) means;
c) the party responsible for handling reporting; and
d) follow-up mechanism on the incidence of reported fraud;
b. policies and mechanisms to perform surprise audits which at least implemented towards high-risk
business unit or prone to fraud;
c. policies and mechanisms which are surveillance activity system to monitor and test the effectiveness
of anti-fraud policies carried out without being noticed or realized by the parties to be tested or
inspected; and
d. surveillance system policy conducted by an independent party and / or internal party financing
companies.
22 / 75
Article 62
Investigation, reporting, and sanctioned steps by the financing companies as referred to in the Article 58
Paragraph (1) c shall have at least cover the following:
a. Financing Company investigation standards, which include:
1. the determination of the authorities which responsible to carry out investigations with due regard
to the independence and competence required; and
2. investigation implementation mechanism to follow up the results of detection while maintaining
the confidentiality of the information obtained;
b. internal fraud incident reporting mechanism within the financing companies as well as to the Financial
Services Authority; and
c. implementation sanctions to give deterrent effect to the perpetrators of fraud Financing Company shall
be applied transparently and consistently the least include:
1. imposition of sanctions mechanism; and
2. authorities impose sanctions.
Article 63
Activity monitoring, evaluation, and follow-up the incidence of fraud as referred to in the Article 58 Paragraph
(1) letter d must consist of:
a. monitoring the follow-up action towards fraud incidence by takin into consideration the Financing
Company internal regulations and laws and regulations;
b. maintaining the data fraud incident (fraud profiling) to support the implementation of the evaluation;
and
c. follow-up mechanism to prevent fraud incident reoccur, which at least include measures to:
1. fix weaknesses; and
2. strengthen internal control systems Finance Company.
Division Three
Reporting
Article 64
(1) Financing Company is required to submit anti-fraud strategy report to the Financial Services Authority
as follows:
a. anti-fraud strategy implementation report as part of the implementation of the good corporate
governance of financing companies; and
b. report on any fraud that is estimated to have a significant negative impact on the Finance
Company.
(2) Report any fraud as referred to in Paragraph (1) letter b shall at least contain:
a. names of perpetrators;
b. shape or type of deviation;
c. scene;
23 / 75
d. brief information on mode; and

e. indication of loss.
(3) Report any fraud as referred to in Paragraph (1) letter b shall be submitted by the Board of
Commissioners accept responsibility report fraud control unit or function of at least 3 (three) working
days from the knowing of fraud.
CHAPTER XIII
CERTIFICATION AND SUSTAINABILITY TERMS FOR THE FIRST PARTY
Article 65
(1) Employees of Financing Company who occupy managerial positions, starting from the head of the
branch office to one level below the Board of Directors shall have a basic level certificate in the field of
financing of the Professional Certification Agency in the field of financing registered in the Financial
Services Authority.
(2) The Board of Directors shall have a certificate of expertise in the field of financing of the Professional
Certification Agency in the field of financing registered in the Financial Services Authority.
(3) Board of Commissioners must have a basic level certification in the field of financing of the
Professional Certification Agency in the field of financing registered in the Financial Services Authority.
(4) Directors and officers who in 1 (one) level below the Board of Directors in charge of risk management
functions must have a certificate of expertise in risk management of the Professional Certification
Agency in the field of risk management listed in the Financial Services Authority.
(5) Employees and/or personnel which is outsourced by Financing Companies to handle invoice collection
functions and execution of collateral are required to have a professional certificate in the field of
invoice collection from the Professional Certification Agency in the field of financing which has been
registered at the Financial Services Authority.
Article 66
(1) Board of Directors and the Board of Commissioners who have passed the fit and proper test shall be
satisfy the continuing professional development requirement for at least 1 (one) time within a period of
one (1) year.
(2) Obligations of the continuing professional development requirements as referred to in Paragraph (1) is
calculated in the following calendar year after members of the Board of Directors or the Board of
Commissioners is approved by the Financial Services Authority as a member of the Board of Directors
or the Board of Commissioners.
(3) continuing professional development requirement as referred to in Paragraph (1), shall be done by:
a. seminars, workshops, or other similar activities;
b. attend courses, training, or similar educational programs;
c. writing papers, articles, or other writings that are published; and / or
d. a speaker in the activities as referred to in letter a, to be a teacher or an instructor in the
activities as referred to in point b.
(4) Material activities as referred to in Paragraph (3) shall be in the financial industry.
(5) Activities as referred to in Paragraph (1) and (3) a, b, and d, to be hosted by:
a. financial services supervisory agency at home and abroad;
24 / 75
b. association of financial institutions at home and abroad;

c. universities inside and outside the country; or
d. training institutions which received a license from the competent authority.
Article 67
Proof of certificate or other proof that shows members of the Board of Directors and Board of Commissioners
meets the requirements of sustainability as referred to in the Article 66 Paragraph (1) shall be submitted to
the Financial Services Authority no later than 1 (one) month after the end of the annual period.
CHAPTER XIV
INVESTMENTS
Article 68
(1) Financing Company can only make direct investments in:
a. Companies in the financial services sector in Indonesia; and / or
b. Companies associated with the activities of financing companies.
(2) The total number of direct investments by Financing Company as referred to in Paragraph (1) shall not
exceed 20% (twenty percent) of the Financing Company’s Equity.
(3) The total number of direct investments Financing Company to entities within 1 (one) banned group
exceeds 10% (ten percent) of the Financing Company’s Equity.
(4) Financing Company shall comply with the provisions of the amount of direct investments as referred to
in Paragraph (2) and (3) at the time of inclusion.
(5) The provisions as referred to in Paragraph (2) and (3) are exempt to financing companies who perform
direct investment to financing companies whose entire business activities carried out based on Islamic
principles of separation results Financing Company are concerned.
CHAPTER XV
FUNDING
Article 69
(1) Financing Company can only obtain funding in the form of:
a. increase in paid up capital from non-public offering;
b. loans from government agencies, banks, non-bank financial industry, institutions, and / or other
business entities;
c. subordinated loans;
d. issuance of securities through a public offering;
e. issuance of debt securities not through a public offering; and / or
f. securitization of assets.
(2) Financing Company shall use the proceeds of the funding source in accordance with the objectives set
in the agreement.
25 / 75
Article 70
In case of Financing Companies received a loan from the institutions and / or other business entities as
referred to in the Article 69 Paragraph (1) letter b, then Financing Companies must receive a loan that meet
the following requirements:
a. the loan amount should be at a minimum of IDR1,000,000,000.00 (one billion rupiah) for each creditor;
b. loan repayment period should be at a minimum of 1 (one) year;
c. should be incorporated into an agreement in the form of notarial deed between Financing Companies
and lenders; and
d. can not be extended automatically (automatic roll over).
Article 71
The subordinated loans received by Financing Companies as referred to in the Article 69 Paragraph (1) letter
c shall meet the following provisions:
a. have a minimum term of 5 (five) years;
b. in case of a liquidation occurred, the right to collect shall have the final effect out of all existing loans;
and
c. should be incorporated into an agreement in the form of notarial deed between Financing Companies
and lenders.
Article 72
Financing Companies intending to carry out the issuance of securities through public offering as referred to
in the Article 69 Paragraph (1) letter d must meet the following requirements:
a. the plan to issue securities through public offering has already been included in the business plan of
Finance Company;
b. financial soundness should have the minimum conditions of sound;
c. have a minimum risk level of medium-low; and
d. comply with the provisions on gearing ratio.
Article 73
(1) Financing Companies intending to carry out the issuance of securities through a public offering as
referred to in the Article 69 Paragraph (1) letter d shall report the plan to issue securities by no later
than 3 (three) months prior to the general meeting of shareholders which approve the public offering or
limited public offering in accordance with the format 1 as listed under the Appendix which is an integral
part to this Regulation of the Financial Services Authority by enclosing following documents:
a. details of the plan for the utilization of funds to be obtained from the public offering;
b. history of previous issuance of securities (if any) which at least contain the following information:
1) amount of securities (emisi efek);
2) The rating for debt securities;
3) period for debt securities; and
4) profile of debt securities holders;
26 / 75
c. projected financial statements;

d. information about important events and transactions after the date of the financial statements
that has been audited by a public accountant firm;
e. a statement from the Board of Directors in accordance with the format 2 as listed under the
Appendix which is an integral part to this Regulation of the Financial Services Authority; and
f. a statement of management in the field of accounting.
(2) The Financial Services Authority shall issue a recordation toward the reporting of the plan to issue
securities through public offering as referred to in Paragraph (1) by no later than 20 (twenty) business
days after the receipt of a complete report.
Article 74
Provisions for the issuance of securities through public offering as referred to in the Article 69 Paragraph (1)
letter d shall adhere to the provisions of laws and regulations in the field of capital markets.
Article 75
Financing Companies intending to carry out the issuance of debt securities not through a public offering as
referred to in the Article 69 Paragraph (1) letter e shall meet the following requirements:
a. the plan to issue securities not through public offering has already been included in the business plan
of Finance Company;
b. financial soundness should have the minimum conditions of sound;
c. have a minimum risk level of medium-low;
d. comply with the provisions on gearing ratio; and
e. have Equity greater than IDR200,000,000,000.00 (two hundred billion rupiah).
Article 76
(1) Financing Companies intending to carry out the issuance of debt securities not through a public
offering as referred to in the Article 69 Paragraph (1) letter e shall report the plan to issue securities by
no later than six (6) months prior to the issuance in accordance with the format 3 as listed under the
Appendix which is an integral part to this Regulation of the Financial Services Authority by enclosing
following documents:
a. sample of debt securities;
b. details of the plan for the utilization of funds to be obtained;
c. the plan of information memorandum to be offered which, at a minimum, contain the following
information:
1) debt securities offering period plan;
2) name of debt securities;
3) principal amount of funding;
4) period of funding;
5) interest rate (if any);
6) collateral (if any); and
7) taxation;
27 / 75
d. history of previous issuance of securities (if any) which, at a minimum, contain the following
information:
1) the amount of debt securities (emisi efek bersifat utang);
2) the rating of debt securities;
3) the term of issuance of debt securities; and
4) buyer profile;
e. prospective financial statements;
f. information about important events and transactions after the date of the financial statements
that has been audited by a public accountant firm;
g. statement from the Board of Directors in accordance with the format 4 as listed under the
Appendix which is an integral part to this Regulation of the Financial Services Authority;
h. the plan of debt securities rating agent and monitoring agent to be used; and
i. a statement of management in the field of accounting.
(2) The Financial Services Authority shall issue a recordation toward the reporting of the plan to issue
securities not through public offering as referred to in Paragraph (1) by no later than 20 (twenty)
business days after the receipt of the report.
Article 77
In the case of Financing Companies issuing debt securities not through a public offering as referred to in the
Article 69 Paragraph (1) letter e, Financing Company must issue debt securities that meet the following
provisions:
a. be registered at the Indonesian Central Securities Depository;
b. has a monitoring agent registered as a trustee of the Financial Services Authority;
c. undergo a rating with a rating result of, at a minimum, investment grade that are conducted by a rating
agency that already have an operating license from the Financial Services Authority; and
d. are rated on a regular basis at least once in 1 (one) year.
Article 78
(1) Financing Companies must submit a report on the realization of utilization of funds resulting from the
issuance of debt securities not through public offering as referred to in the Article 69 Paragraph (1)
letter e, which is made periodically every 3 (three) months with the reporting date of 31 March, 30
June, 30 September, and 31 December.
(2) The format and content of the report on the realization of utilization of funds as referred to in
Paragraph (1) shall be prepared in accordance with the format 5 as listed under the Appendix which is
an integral part to this Regulation of the Financial Services Authority.
Article 79
(1) Financing Companies must comply with the provisions on the minimum gearing ratio of 0 (zero) times
and a maximum of 10 (ten) times.
(2) The Gearing ratio as referred to in Paragraph (1)for Financing Companies are obtained from the ratio
between the sum of:
a. loans as referred to in the Article 69 Paragraph (1) b;
28 / 75
b. subordinated loans as referred to in the Article 69 Paragraph (1) c;

c. securities issued through public offering as referred to in the Article 69 Paragraph (1) d in the
form of debt; and
d. debt securities issued not through a public offering as referred to in the Article 69 Paragraph (1)
letter e,
with the difference in the sum of Equity and subordinated loan as referred to in the Article 69
Paragraph (1) letter c with inclusion.
(3) Subordinated loans that can be calculated as divider in the calculation of gearing ratio as referred to in
Paragraph (2) are set at a maximum of 50% (fifty percent) of Paid-Up Capital.
Article 80
(1) Financing Companies that received loans in the form of:
a. loans as referred to in the Article 69 Paragraph (1) b;
b. subordinated loans as referred to in the Article 69 Paragraph (1) c;
c. securities issued through public offering as referred to in the Article 69 Paragraph (1) d in the
form of debt; and
d. debt securities issued not through a public offering as referred to in the Article 69 Paragraph (1)
letter e,
in foreign currency must carry out a full hedging.
(2) Hedge in full (full hedge) as referred to in Paragraph (1) shall be carried out for the principal loan,
interest rates, and / or payment terms.
Article 81
Financing Companies about to receive loans in foreign currencies as referred to in Article 80 Paragraph (1)
must fulfill the Financial Soundness Level with the minimum conditions of sound.
CHAPTER XVI
PROHIBITION
Article 82
Financing Companies are prohibited to:
a. collect funds directly from the public in the form of giro account [sic!], savings, deposits, and / or other
forms equivalent to the accumulation of public funds;
b. provide guarantees of any kind for the fulfillment of obligations of other parties;
c. provide loans or financing using guarantees under pawn law;
d. issue promissory notes, except as debt collateral to banks as the creditor;
e. perform actions that cause or force other financial institutions under the supervision of the Financial
Services Authority to violate of the provisions of laws and regulations; and/or
f. perform actions that cause or force other financial institutions under the supervision of the Financial
Services Authority to avoid the provisions of laws and regulations.
29 / 75
Article 83
Financing Companies in conducting their business activities are prohibited from using false information that
could harm the interests of Debtors, creditors, and stakeholders including the Financial Services Authority.
CHAPTER XVII
RATIO OF RECEIVABLES FINANCING
Article 84
(1) Financing Company shall have a ratio of net Outstanding Principal toward total assets (financing to
asset ratio) of a minimum of 40% (forty percent).
(2) The net Outstanding Principal as referred to in Paragraph (1) must be obtained from the deduction of
Outstanding Principal with the reserve of provision for receivables financing that has been set up by
the financing companies.
(3) Financing Company must fulfill the provisions as referred to in Paragraph (1) by no later than three (3)
years after obtaining a business license.
(4) In the case of Financing Companies that carries out an increase in paid-up capital for the fulfillment of
the provisions on minimum Equity, equity ratio, gearing ratio, and paid-up capital to equity ratio,
Financing Companies shall be exempt from the fulfillment of the provisions as referred to in Paragraph
(1) within a maximum period of 1 (one) year from the date of the increase in paid-up capital was
approved by the Financial Services Authority.
Article 85
(1) Financing Companies must set out a target ratio of net Outstanding Principal toward total received
funding in their business plan.
(2) The target ratio of net Outstanding Principal toward total received funding as referred to in Paragraph
(1) must be set out realistically.
(3) The realization of the achievement of target ratio of net Outstanding Principal toward total received
funding as referred to in Paragraph (1) shall be reported in the monthly reports submitted to the
Article 86
(1) Financing Companies must have a ratio of Outstanding Principal for Investment Financing and
Working Capital Financing compared with the total Outstanding Principal before the deduction of the
reserve of provision for receivables financing that has been set up of at least 10% (ten percent).
(2) For Financing Companies that already secure business license at the time this Regulation of the
Financial Services Authority is promulgated, then the achievement of the ratio as referred to in
Paragraph (1) shall be carried out in stages, specifically:
a. at least 5% (five percent) within a period of 3 (three) years since the promulgation of the
Regulation of the Financial Services Authority; and
b. at least 10% (ten percent) within a period of five (5) years since the promulgation of the
Regulation of the Financial Services Authority.
(3) For Financing Companies that secure business licenses after this Financial Services Authority is
promulgated, then the Financing Companies shall fulfill the provisions as referred to in Paragraph (1)
by no later than 1 (one) year after securing the business license.
30 / 75
Chapter XVIII
EQUITY
Article 87
(1) Financing Companies in the form of the following legal entity [sic!]:
a. limited liability company, must have a minimum Equity of IDR100,000,000,000.00 Equity (one
hundred billion rupiahs); or
b. cooperatives, must have a minimum Equity of IDR50,000,000,000.00 (fifty billion rupiahs), by no
later than 31 December 2019.
(2) Financing Companies incorporated as a limited liability company that already secured a business
license before the promulgation of this Regulation of the Financial Services Authority and has Equity
below the provisions as referred to in Paragraph (1) letter a, must have Equity in stages as follows:
a. at least IDR40,000,000,000.00 (forty billion) at the time this Regulation of the Financial Services
Authority regulation was promulgated; and
b. at least IDR100,000,000,000.00 (one hundred billion) by no later than 31 December 2019.
Article 88
Financing Company must have a minimum Equity to Paid-Up ratio of 50% (fifty percent).
CHAPTER XIX
FINANCIAL SOUNDNESS
Division One
General
Article 89
(1) Financing Company shall at all times comply with the requirements of the Financial Soundness Level
with the minimum conditions of sound.
(2) The measurement of Financial Soundness ratio as referred to in Paragraph (1) shall include:
a. capital ratio;
b. the quality of receivables financing;
c. profitability; and
d. liquidity.
Division Two
Capital Ratio
Article 90
31 / 75
(1) Financing Company shall comply with the capital ratio of at least of 10% (ten percent).
(2) The capital ratio as referred to in Paragraph (1) is the ratio between adjusted capital with adjusted
assets.
Division Three
Quality of Receivables Financing
Sub-division 1
Assessment of Quality Financing Receivables
Article 91
Financing Companies must assess, monitor, and perform the necessary steps to ensure the quality of
receivables financing is always good.
Article 92
(1) The assessment of quality of receivables financing as referred to in the Article 91 are set as:
a. performing;
b. special mention;
c. under-performing;
d. doubtful; or
e. non-performing.
(2) The assessment of quality of receivables financing as referred to in Paragraph (1) shall be determined
based on factors of timely payment of principal and/or interest.
(3) The assessment of quality of receivables financing as referred to in Paragraph (1) are categorized as
follows:
a. performing if there are no delays or there are delays in the payment of principal and / or interest
up to 10 (ten) calendar days;
b. special mention if there are delays in payment of principal and / or interest that has exceeded 10
(ten) calendar days up to 90 (ninety) calendar days;
c. under-performing if there are delay in payment of principal and / or interest that has exceeded
90 (ninety) calendar days to 120 (one hundred and twenty) calendar days;
d. doubtful if there are delays in payment of principal and / or interest that has exceeded 120 (one
hundred and twenty) calendar days up to 180 (one hundred eighty) calendar days; or
e. non-performing when there are delays in payment of principal and / or interest that has
exceeded 180 (one hundred eighty) calendar days.
Article 93
(1) In addition to the timely payment of principal and / or interest as referred to in the Article 92 Paragraph
(2), the assessment of quality of receivables financing for Investment Financing and Working Capital
Financing with financing value upon the signing of the agreement amounting to IDR5,000,000,000.00
(five billion rupiahs) or more, can also be determined by considering the following factors:
32 / 75
a. The Debtor's ability to pay;

b. The Debtor’s financial performance; and
c. The Debtor's business prospects.
(2) The assessment of the Debtor’s ability to pay as referred to in Paragraph (1) letter a includes an
assessment of the following components:
a. the availability and accuracy of the financial information of the Debtor;
b. the completeness of financing documentation;
c. the compliance toward the financing agreement;
d. the suitability of the use of funds; and
e. the reasonableness of the source of payment of obligations.
(3) The assessment of the Debtor’s financial performance Debtor as referred to in Paragraph (1) letter b
includes an assessment of the following components:
a. acquisition of profit;
b. capital structure;
c. cash flow; and
d. sensitivity to market risk.
(4) The assessment of the Debtor's business prospects as referred to in Paragraph (1) letter c includes an
assessment of the following components:
a. the potential for business growth;
b. market conditions and the position of the Debtor in the competition;
c. quality of management and labor problems;
d. support from the group or an affiliate; and
e. efforts made by the Debtor in environmental maintenance.
(5) In the event of any discrepancy between the assessment of the quality of receivables financing by
Financing Companies with the Financial Services Authority, the quality of receivables financing that
apply are the ones set out by the Financial Services Authority.
(6) Financing Companies must make adjustments to the quality of receivables financing with the
assessment of quality of receivables financing set out by the Financial Services Authority as referred
to in Paragraph (5) in a report submitted to the Financial Services Authority.
Sub-division 2
Quality of Receivables Financing for Debtors with Multiple Financing Agreements
Article 94
(1) Financing Companies are required to set out the same quality of receivables financing to 1 (one)
Debtor with more than 1 (one) financing.
(2) In setting out the same quality of receivables financing to 1 (one) Debtor with more than 1 (one)
financing as referred to in Paragraph (1), Financing Companies are required to use the lowest quality
of receivables financing.
(3) Financing Companies can set out different quality of receivables financing for more than 1 (one)
financing owned by 1 (one) Debtor as referred to in Paragraph (1), in the case of:
33 / 75
a. The receivables financing receivables having the lowest quality has been written off; and / or
b. The value of Outstanding Principal is up to IDR5,000,000,000.00 (five billion rupiahs).
Sub-division 3
Non-Performing Financing
Article 95
(1) Financing Companies must maintain the quality of receivables financing.
(2) The receivables financing that are classified as non-performing financing consists of receivables
financing with the quality of under-performing, doubtful, and non-performing.
(3) Financing Companies shall at all times maintain the ratio of Outstanding Principal with a classification
of quality of non-performing financing as referred to in Paragraph (2) after the deduction of the reserve
of provision for receivables financing that has been set up by Financing Companies for receivables
financing with the quality of under-performing, doubtful, and non-performing compared to the total
Outstanding Principal with the maximum amount of 5% (five percent).
Article 96
Financing Company can conduct the restructuring of receivables financing.
Sub-division 4
Reserve of Provision for Receivables Financing
Article 97
(1) Financing Company must calculate the reserve of provision for receivables financing.
(2) The reserve of provision for receivables financing as referred to in Paragraph (1) is set at a minimum
of:
a. 1% (one percent) of the Outstanding Principal which has a quality of performing after the
deduction of collateral;
b. 5% (five percent) of the Outstanding Principal which has a quality of special mention after the
c. 15% (fifteen percent) of the Outstanding Principal which has a quality of under-performing after
the deduction of collateral;
d. 50% (fifty percent) of the Outstanding Principal which has a quality of doubtful after the
e. 100% (one hundred percent) of the Outstanding Principal which has a quality of non-performing
after the deduction of collateral.
(3) Financing Company is required to establish the reserve of provision for receivables financing at a
minimum of in accordance with the provisions as referred to in Paragraph (2) in a monthly report.
(4) The value of collateral as referred to in Paragraph (2) which can be calculated as a deduction of
Outstanding Principal is set at a maximum of equal to its outstanding principal.
Sub-division 5
34 / 75
Reserves for the Loss of Receivables Financing Value
Article 98
(1) Financing Company is required to establish reserves for the loss of receivables financing value
according to the applicable accounting standards.
(2) The establishment of reserves for the loss of receivables financing value as referred to in Paragraph
(1) shall be conducted during the preparation of financial statements which have been audited by a
public accountant firm.
Division Four
Profitability
Article 99
(1) The profitability as referred to in the Article 89 Paragraph (2) c is the Finance Company's ability to
generate profits.
(2) The assessment toward the profitability factor as referred to in Paragraph (1) shall include an
assessment of asset performance and operational efficiency.
Division Five
Liquidity
Article 100
The assessment toward the liquidity factor as referred to in the Article 89 Paragraph (2) d is an assessment
of the level of conformity between current assets and current liabilities.
CHAPTER XX
FINANCING COMPANIES IN THE FIELD OF ELECTRICITY AND SHIPPING
Article 101
(1) Financing Company which was established specifically to carry out financing activities in the electricity
sector may conduct business other than the business activities as referred to in the Article 2.
(2) Other business activities as referred to in Paragraph (1) is only conducted in supporting the fulfillment
of the national electricity needs.
(3) Financing Company as referred to in Paragraph (1) shall be exempted from the obligation to comply
with the provisions of Article 79 Paragraph (1), Article 84 Paragraph (1), and Article 90 Paragraph (1).
Article 102
Financing Companies that are established specifically to conduct activities in the field of shipping are
excluded from the obligation to meet the provisions as referred to in the Article 68 Paragraph (2) and (3).
CHAPTER XXI
35 / 75
SUBMISSION OF PERIODIC REPORTS
Article 103
(1) Financing Company is required to submit periodic reports to the Financial Services Authority, namely:
a. monthly report; and
b. annual financial statement that has been audited by a public accountant firm.
(2) The provisions concerning the monthly report as referred to in Paragraph (1) letter a are stipulated
under a Regulation of the Financial Services Authority on monthly reports.
Article 104
(1) Financing Company is required to submit annual financial statements that has been audited by a
public accountant firm as referred to in the Article 103 Paragraph (1) b to the Financial Services
Authority by no later than four (4) months after the last fiscal year.
(2) Financing Company is required to submit annual financial statements that has been audited by a
public accountant firm as referred to in the Article 103 Paragraph (1) letter b in a complete and correct
manner in hardcopy and softcopy form.
(3) If the deadline for submission of annual financial statements as referred to in Paragraph (1) falls on a
holiday, then the deadline for submission of the statements shall be the first upcoming business day.
Article 105
(1) Annual financial statements which have been audited as referred to in the Article 103 Paragraph (1)
letter b shall be prepared based on the financial accounting standards applicable in Indonesia.
(2) The annual financial statements as referred to in the Article 103 Paragraph (1) letter b shall include the
calculation of matters specifically regulated under this Regulation of the Financial Services Authority.
(3) The annual financial statements that has been audited by a public accountant firm as referred to in the
Article 103 Paragraph (1) letter b shall be prepared in the rupiah currency.
(4) The accounting year as referred to in the Article 104 Paragraph (1) shall be based on the calendar
year.
(5) Public accountant as referred to in the Article 104 Paragraph (2) shall be registered with the Financial
Services Authority.
(6) If the Financing Company obtain a business license for less than six (6) months until the end of the
calendar year, the obligation to submit an annual financial statement as referred to in the Article 103
Paragraph (1) letter b shall take effect on the next calendar year.
Article 106
(1) Financing Company must announce a statement of financial position and statement of comprehensive
profit and loss by no later than four (4) months after the end of the accounting year at least in 1 (one)
daily newspaper in Indonesia which has a national circulation.
(2) Financing Company shall report the implementation of the announcement as referred to in Paragraph
(1) in writing to the Financial Services Authority by no later than 20 (twenty) calendar days after the
implementation of the announcement while enclosing the evidence of the announcement.
(3) If the deadline for submission of reports on the implementation of the announcement as referred to in
Paragraph (2) falls on a holiday, the deadline for the submission of the report shall be the first
upcoming business day.
36 / 75
CHAPTER XXII
MISCELLANEOUS
Article 107
(1) Professional Certification Agencies shall be registered with the Financial Services Authority.
(2) To be registered with the Financial Services Authority, the Professional Certification Agencies as
referred to in Paragraph (1) shall submit an application to the Financial Services Authority and
enclose:
a. proof of valid license from the Professional Certification Agency of other institution which is
appointed based on the provisions of laws and regulations;
b. photocopy of the deed of the articles of association the Professional Certification Agency;
c. the certification scheme of the Professional Certification Agency;
d. the standard operating procedure (SOP) for the implementation of certification; and
e. the organizational structure and structure of the supervisory board of the Professional
Certification Agency.
Article 108
In the event that the Financial Services Authority has provided an electronic service system (e-licensing), the
application for approval and/or reporting as referred to in the Article 5 (2), Article 6 paragraph (1), Article 64
paragraph (1), Article 73 paragraph (1), Article 76 paragraph (1), Article 78 paragraph (1), Article 103
paragraph (1), and Article 106 paragraph (2) shall be submitted to the Financial Services Authority via online
through the data communication network system of the Financial Services Authority.
Article 109
Further provisions regarding the organization of the business of Financing Company, among others are
related to procedures for measuring Financial Soundness, procedures for calculating capital ratios,
guidelines for evaluating the quality of productive assets, restructuring of productive assets, types of
procedures for calculation, return of collateral, procedures for restructuring productive assets, and
procedures for calculating reserves, procedures for evaluating profitability, procedures for evaluating liquidity,
and/or electronic services (e-licensing), shall be regulated in the Circular of the Financial Services Authority
Circular.
CHAPTER XXIII
COMPLIANCE ENFORCEMENT
Division One
Notification
Article 110
(1) Financing Company that does not comply with the provisions as referred to in the Article 6 paragraph
(1), Article 7, Article 9, Article 23 paragraph (5), Article 26 paragraph (1), Article 27 paragraph (1),
Article 28 paragraph (1), Article 33, Article 34, Article 35, Article 36, Article 80, Article 103 paragraph
37 / 75
(1), Article 104 paragraph (1) and paragraph (2), Article 105 paragraph (1), paragraph (2), paragraph
(3), paragraph (4) and paragraph (5), and/or Article 106 paragraph (1) and paragraph (2), of this
Regulation of the Financial Services Authority shall be given a notification letter.
(2) Financing Company must fulfil the provisions as referred to in paragraph (1) no later than 1 (one)
month from the date of the notification letter.
Division Two
Fulfilment Plan
Article 111
(1) Financing Company that does not comply with the provisions as referred to in the Article 18 paragraph
(1), Article 23 paragraph (1), Article 24 paragraph (1) and paragraph (2), Article 65, Article 84
paragraph (1) and paragraph (3), Article 86, Article 87, Article 88, Article 89 paragraph (1), Article 90
paragraph (1), Article 91, Article 95 paragraph (1) and paragraph (3), Article 97 paragraph (1) and
paragraph (3), and/or Article 98 paragraph (1) of this Regulation of the Financial Services Authority is
required to submit a compliance plan no later than 1 (one) month from the date of the determination of
such violation by the Financial Services Authority.
(2) Compliance plan as referred to in paragraph (1) shall at least contain a plan that the Financing
Company will carry out accompanied by a certain time period needed to fulfill the provisions as
referred to in paragraph (1).
(3) Compliance plan as referred to in paragraph (1), shall include:
a. restructuration of assets and/or liabilities;
b. restrictions on admission of new loans;
c. acceptance of subordinated loans;
d. transfer of part or all of the assets;
e. restrictions on the distribution of profits;
f. restrictions on activities that lead to violations;
g. restrictions on opening new branches;
h. addition of Paid-Up Capital;
i. merger of business entity; and/or
j. other measures.
(4) The time period for the compliance plan in the form of measures as referred to in paragraph (3) letter a
to letter g shall be limited to maximum of 1 (one) year.
(5) The time period for the compliance plan in the form of measures as referred to in paragraph (3) letter h
and letter i shall be limited to maximum of 2 (two) years.
(6) The time period for the compliance plan in the form of other measures as referred to in paragraph (3)
letter j shall be limited to maximum of 1 (one) year.
Article 112
(1) Compliance plan as referred to in Article 111 paragraph (1) shall be signed by the entire Board of
Directors and Board of Commissioners.
(2) Compliance plan as referred to in the Article 111 paragraph (1) shall first be approved by the general
meeting of shareholders in the event that the said plan contains a plan to increase the Paid-Up Capital
38 / 75
or a business entity merger plan.

(3) Compliance plan as referred to in the Article 111 paragraph (1) shall obtain a no objection statement
from the Financial Services Authority.
(4) Financial Services Authority shall deliver a correction request, rejection, or a no objection statement on
the compliance plan submitted by the Financing Company as referred to in Article 111 paragraph (1)
within a maximum period of 14 (fourteen) business days after the compliance plan has been received.
(5) Financial Services Authority shall deliver a correction request on the compliance plan in the event that
the compliance plan is assessed to be able to solve the problems of the provisions which cannot be
met by Financing Company but the said compliance plan still requires an improvement.
(6) Financing Company shall submit the amended compliance plan as requested by the Financial
Services Authority as referred to in paragraph (5) no later than 14 (fourteen) business days from the
date of the compliance plan correction request from the Financial Services Authority.
(7) In the case of Financing Company has submitted the amended compliance plan as requested by the
Financial Services Authority, the Financial Services Authority shall give a no objection statements in
accordance with the provisions as referred to in paragraph (4).
(8) Financial Services Authority shall reject the compliance plan in the event that the compliance plan is
judged to not be able to solve the problems of the provisions which cannot be met by the Financing
Company.
(9) Financial Services Authority shall provide the no objection statement over the compliance plan in the
event that the compliance plan is considered to be able to solve the problems of the provisions which
cannot be met by the Financing Company.
(10) If within the time period as referred to in paragraph (4), the Financial Services Authority does not
submit a correction request, rejection, or no objection statement, the Financing Company may
implement the compliance plan.
(11) The Financing Company shall implement the compliance plan that has obtained a no objection
statement from the Financial Services Authority as referred to in paragraph (9) or a compliance plan as
referred to in paragraph (10).
CHAPTER XXIV
ADMINISTRATIVE SANCTIONS
Article 113
(1) In the event that until the end of the time period of the notification letter as referred to in the Article 110
paragraph (2), the Financing Company does not also comply with the provisions as referred to in the
Article 110 paragraph (1), the Financing Company shall be subject to administrative sanctions in
stages as follows:
a. warning;
b. suspension of business activities; and
c. revocation of business permit.
(2) In addition to the administrative sanctions as referred to in paragraph (1), the Financial Services
Authority may:
a. restrict certain business activities;
b. lower the risk level assessment results;
c. cancel the approval; and/or
39 / 75
d. carry out a fit and proper test again to the main party of the Financing Company.
(3) Financing Company that violates the provisions as referred to in paragraph (1), but the violation has
been resolved, shall remain subject to administrative sanctions in the form of the first warning that
shall end by itself.
(4) The administrative sanction in the form of warning as referred to in paragraph (1) letter a, may be
given in writing at most three (3) times in a row with each validity period of at least 2 (two) months.
(5) In the event that before the end of the validity period of the administrative sanction in the form of
warning as referred to in paragraph (4), the Financing Company has already complied with the
provisions of Article 110 paragraph (1), the Financial Services Authority shall revoke the administrative
sanction in the form of warning.
(6) In the event that the validity period of the third warning as referred to in paragraph (4) has ended and
the Financing Company still does not meet the provisions as referred to in the Article 110 paragraph
(1), the Financial Services Authority shall impose the administrative sanction in the form of suspension
of business activities.
(7) The administrative sanction in the form of suspension of business activities as referred to in paragraph
(6) shall be given in writing and shall be valid since determined for a maximum period of 6 (six)
months.
(8) If the validity period of the administrative sanction in the form of a warning and/or suspension of
business activities ended on holiday, the administrative sanction in the form of a warning and/or
suspension of business activities shall be valid until the next first business day.
(9) The Financing Company that is imposed with administrative sanction in the form of suspension of
business activities as referred to in paragraph (6) is prohibited from conducting financing business
activities.
(10) In the case before the end of the validity period of the suspension of business activities as referred to
in paragraph (7), the Financing Company has complied with the provisions as referred to in the Article
110 paragraph (1), the Financial Services Authority shall revoke the administrative sanction in the form
of suspension of business activities.
(11) In the event that the administrative sanction in the form of suspension of business activities is still valid
and the Financing Company still conducts financing business activities, the Financial Services
Authority may directly impose administrative sanction in the form of revocation of business permit.
(12) In the event that until the end of the validity period of the suspension of business activities as referred
to in paragraph (7), the Financing Company does not comply with the provisions as referred to in
Article 110 paragraph (1), the Financial Services Authority shall revoke the business permit of the said
Financing Company.
(13) Financial Services Authority may announce the administrative sanction in the form of suspension of
business activities as referred to in paragraph (1) letter b and/or revocation of business permit as
referred to in paragraph (1) letter c to the public.
Article 114
(1) Financing Company that:
a. violates the provisions as referred to in the Article 111 paragraph (1) and/or Article 112
paragraph (6) and paragraph (11);
b. the compliance plan is rejected by the Financial Services Authority as referred to in Article 112
paragraph (8); and/or
c. does not comply with the provisions of Article 18 paragraph (1), Article 23 paragraph (1), Article
24 paragraph (1) and (2), Article 65, Article 84 paragraph (1) and paragraph (3), Article 86,
Article 87, Article 88, Article 89 paragraph (1), Article 90 paragraph (1), Article 91, Article 95
paragraph (1) and paragraph (3), Article 97 paragraph (1) and paragraph (3), and/or Article 98
40 / 75
paragraph (1) within the time period as specified in the compliance plan as referred to in Article
111 paragraph (4) to paragraph (6),
shall be subject to administrative sanctions.
(2) The administrative sanctions as referred to in paragraph (1) shall be imposed gradually in the form of:
a. warning;
b. suspension of business activities; and/or
Authority may:
(4) Financing Company that violates the provisions as referred to in paragraph (1), but the violation has
been resolved, shall remain subject to administrative sanctions in the form of the first warning that
shall end by itself.
provisions of Article 18 paragraph (1), Article 23 paragraph (1), Article 24 paragraph (1) and paragraph
(2), Article 65, Article 84 paragraph (1) and paragraph (3), Article 86, Article 87, Article 88, Article 89
paragraph (1), Article 90 paragraph (1), Article 91, Article 95 paragraph (1) and paragraph (3), Article
97 paragraph (1) and paragraph (3), Article 98 paragraph (1), Article 111 paragraph (1), and/or Article
112 paragraph (6) and paragraph (11), the Financial Services Authority shall revoke the administrative
sanction in the form of warning.
the Financing Company still does not comply with the provisions as referred to in Article 18 paragraph
(1), Article 23 paragraph (1), Article 24 paragraph (1) and paragraph (2), Article 65, Article 86, Article
87, Article 88, Article 89 paragraph (1), Article 90 paragraph (1), Article 91, Article 95 paragraph (1)
and paragraph (3), Article 97 paragraph (1) and paragraph (3), Article 98 paragraph (1), the Financial
Services Authority shall impose administrative sanction in the form of suspension of business
activities.
the Financing Company still does not comply with the provisions as referred to in Article 84 paragraph
(1) and paragraph (3), Article 111 paragraph (1), and/or Article 112 paragraph (6) and paragraph (11),
the Financial Services Authority shall impose administrative sanction in the form of revocation of
business permit without any prior administrative sanction in the form of suspension of business
activities.
(9) Administrative sanction in the form of suspension of business activities as referred to in paragraph (2)
letter b shall be given in writing and shall be valid since determined, for a maximum period of 6 (six)
months.
(10) If the period of validity of administrative sanctions in the form of a warning as referred to in paragraph
(2) letter a and/or suspension of business activities as referred to in paragraph (2) letter b ended on
holiday, administrative sanctions in the form of a warning and/or suspension of business activities shall
still apply to the next first business day.
(11) Financing Company that is imposed with administrative sanction in the form of suspension of business
41 / 75
activities as referred to in paragraph (7), is prohibited from carrying out business activities.
in paragraph (9), the Financing Company have met the provisions as referred to in paragraph (1), the
Financial Services Authority shall revoke the administrative sanction in the form of suspension of
business activities.
(13) In the case of the administrative sanction in the form of suspension of business activities is still valid
to in paragraph (9), the Financing Company still not comply with the provisions as referred to in the
Article 18 paragraph (1), Article 23 paragraph (1), Article 24 paragraph (1) and paragraph (2), Article
65, Article 86, Article 87, Article 88, Article 89 paragraph (1), Article 90 paragraph (1), Article 91, Article
95 paragraph (1) and paragraph (3), Article 97 paragraph (1) and paragraph (3), Article 98 paragraph
(1), the Financial Services Authority shall revoke the business permit of the said Financing Company.
(15) Financial Services Authority may announce the administrative sanctions in the form of suspension of
business activities as referred to in paragraph (2) letter b, and/or revocation of business permit as
Article 115
(1) Financing Company that violates the provisions as referred to in Article 4, Article 5, paragraph (2),
Article 10, Article 12, Article 13, Article 14 paragraph (2) and paragraph (3), Article 15 paragraph (2)
and paragraph (3), Article 16 paragraph (1) and paragraph (2), Article 17, Article 19 paragraph (2),
Article 20 paragraph (2), paragraph (3), paragraph (4) and paragraph (5), Article 22 paragraph (1),
Article 29, Article 30 paragraph (1), Article 31, Article 32, Article 37, Article 38, Article 39 paragraph (2),
paragraph (3) and paragraph (5), Article 40 paragraph (1), Article 41 paragraph (1), Article 42, Article
43, Article 44 paragraph (1), Article 45, Article 46, Article 47, Article 48 paragraph (2), paragraph (3),
(4) and (5 ), Article 49 Paragraph (1) and Paragraph (3), Article 50, Article 51 Paragraph (1), Article 52,
Article 53 paragraph (1), Article 55 paragraph (1), Article 56 paragraph (1), Article 57 paragraph (1),
Article 58 paragraph (1), Article 59, Article 64 paragraph (1), Article 66 paragraph (1), Article 67, Article
68 paragraph (1), paragraph (2) , paragraph (3) and paragraph (4), Article 69, Article 70, Article 72,
Article 73 paragraph (1), Article 75, Article 76 paragraph (1), Article 77, Article 78 paragraph (1), Article
79 paragraph (1), Article 81, Article 82, Article 83, Article 85 paragraph (1) and paragraph (2), Article
93 paragraph (6), Article 94 paragraph (1) and paragraph (2), of this Regulation of the Financial
Services Authority shall be subject to administrative sanctions in stages, in the form of:
a. warning;
b. suspension of business activities; and
Authority may:
(3) Financing Company that violates the provisions as referred to in Paragraph (1), but the violation has
been resolved, shall remain subject to administrative sanction in the form of the first warning that will
end by itself.
42 / 75
provisions as referred to in paragraph (1), the Financial Services Authority shall revoke the
administrative sanction in the form of warning.
the Financing Company still does not meet the provisions as referred to in paragraph (1), the Financial
Services Authority shall impose the administrative sanction in the form of suspension of business
activities.
(7) The administrative sanction in the form of suspension of business activities as referred to in paragraph
(6) shall be given in writing and shall be valid since determined for a maximum period of 6 (six)
months.
(8) If the validity period of the administrative sanction in the form of a warning and/or suspension of
business activities ended on holiday, the administrative sanction in the form of a warning and/or
suspension of business activities shall be valid until the next first business day.
(9) The Financing Company that is imposed with administrative sanction in the form of suspension of
business activities as referred to in paragraph (6) is prohibited from conducting financing business
activities.
in paragraph (7), the Financing Company has complied with the provisions as referred to in paragraph
(1), the Financial Services Authority shall revoke the administrative sanction in the form of suspension
of business activities.
(11) In the event that the administrative sanction in the form of suspension of business activities is still valid
to in paragraph (7), the Financing Company does not comply with the provisions as referred to in
paragraph (1), the Financial Services Authority shall revoke the business permit of the said Financing
Company.
(13) Financial Services Authority may announce the administrative sanction in the form of suspension of
business activities as referred to in paragraph (1) letter b and/or revocation of business permit as
Article 116
(1) Financial Services Authority may impose administrative sanction in the form of suspension of business
activities without prior imposition of administrative sanction in the form of a warning in the case of the
Financing Company conducts a violation of Article 82 letter a and/or Article 83.
(2) Administrative sanction in the form of suspension of business activities as referred to in paragraph (1)
shall be given in writing and shall be valid since determined for a maximum period of 6 (six) months.
(3) If the validity period of the administrative sanction in the form of suspension of business activities
ended on holiday, the administrative sanction in the form of suspension of business activities shall still
be valid until the next first business day.
(4) Financing Company that is imposed with administrative sanction in the form of suspension of business
activities as referred to in paragraph (1), is prohibited from conducting financing business activities.
(5) In the event that before the end of the validity period of suspension of business activities as referred to
in paragraph (2), the Financing Company has fulfilled the provisions as referred to in paragraph (1),
the Financial Services Authority shall revoke the administrative sanction in the form of suspension of
business activities.
(6) In the case of administrative sanction in the form of suspension of business activities is still valid and
43 / 75
the Financing Company still conducts financing business activities, the Financial Services Authority
may directly impose administrative sanction in the form of revocation of business permit.
to in paragraph (2), the Financing Company still does not fulfil the provisions as referred to in
paragraph (1), the Financial Services Authority shall revoke the business permit of the said Financing
Company.
(8) Financial Services Authority may announce the administrative sanctions in the form of suspension of
business activities as referred to in paragraph (1) and/or revocation of business permit as referred to in
paragraph (6) or paragraph (7) to the public.
CHAPTER XXV
TRANSITIONAL PROVISIONS
Article 117
(1) For Financing Company that has obtained business permit before the promulgation of this Regulation
of the Financial Services Authority, the provisions regarding the content of the financing agreement as
referred to in Article 34 letter e and letter n to letter r shall be valid for six (6) months from the
promulgation of this Regulation of the Financial Services Authority.
of the Financial Services Authority, the obligation to store and maintain documents of proof of
ownership of the collateral at the central office and/or branch offices of the Financing Company as
referred to in Article 43 paragraph (1) and Article 44 paragraph (1) is declared to be valid for 1 (one)
year from the promulgation of this Regulation of the Financial Services Authority.
of the Financial Services Authority, the obligation to implement fraud control as referred to in Article 53
paragraph (1) shall remain valid for 1 (one) year from the promulgation of this Regulation of the
of the Financial Services Authority, the provisions regarding the obligation to form a unit or function in
charge of the fraud control in the Financing Company’s organization as referred to in Article 55
paragraph (1) shall remain valid for six (6) months from the promulgation of this Regulation of the
(5) Certificates in the field of finance, billing, and risk management as referred to in Article 65 which has
been obtained from the agencies appointed by the association, before the promulgation of this
Regulation of the Financial Services Authority shall otherwise remain valid and legitimate.
(6) Agencies that have implemented the certification in the field of finance, billing, and risk management
as referred to in paragraph (5) shall comply with the provisions as a Professional Certification Agency
no later than three (3) years from the promulgation of this Regulation of the Financial Services
Authority.
Article 118
(1) Every notification letter that has been given to the Financing Company by the Financial Services
Authority in accordance with Regulation of the Financial Services Authority Number 29/POJK.05/2014
on the Implementation of Financing Business shall otherwise remain valid and legitimate.
(2) Every compliance plan that has obtained a no objection statement from the Financial Services
Authority based on the Regulation of the Financial Services Authority Number 29/POJK.05/2014 on
the Implementation of Financing Business shall otherwise remain valid and legitimate.
44 / 75
(3) Every administrative sanction that has been imposed on Financing Company by the Financial Services
Authority based on Regulation of the Financial Services Authority Number 29/POJK.05/2014 on the
Implementation of Financing Business shall otherwise remain valid and legitimate.
(4) Financing Company that cannot resolve the cause of the imposition of administrative sanctions as
referred to in paragraph (3) shall be subject to continued administrative sanctions in accordance with
this Regulation of the Financial Services Authority.
CHAPTER XXVI
CLOSING
Article 119
Upon the effective enforcement of this Regulation of Financial Services Authority, the provisions regarding
the organization of Financing Company business shall comply to this Regulation of the Financial Services
Authority'.
Article 120
Upon the effective enforcement of this Regulation of Financial Services Authority:
a. Regulation of the Financial Services Authority Number 29/POJK.05/2014 on the Business
Implementation of Financing Company (State Gazette of the Republic of Indonesia of 2014 Number
364, Supplement to the State Gazette of the Republic of Indonesia Number 5638) is revoked and
declared invalid;
b. Article 49 of Regulation of the Financial Services Authority Number 30/POJK.05/2014 on Good
Corporate Governance for Financing Companies (State Gazette of the Republic of Indonesia of 2014
Number 365, Supplement to the State Gazette of the Republic of Indonesia Number 5639) is revoked
and declared invalid;
c. Circular of the Financial Services Authority Number 47/SEOJK.05/2016 on the Amount of Down
Payment of Vehicle Financing for Financing Companies is revoked and declared invalid; and
d. Roman V number 2 letter c number 4) to number 8) of Circular of the Financial Services Authority
Number 1/SEOJK.05/2016 on Financial Soundness of Financing Companies is revoked and declared
invalid; and
e. all of the implementing regulation of the Regulation of Financial Services Authority Number
29/POJK.05/2014 on the Business Implementation of Financing Company (State Gazette of the
Republic of Indonesia of 2014 Number 364, Supplement to the State Gazette of the Republic of
Indonesia Number 5638), shall otherwise remain valid to the extent that it is not in contradiction with
the provisions in this Regulation of the Financial Services Authority.
Article 121
This Regulation of the Financial Services Authority comes into force from the date of its promulgation.
For public cognizance, it is hereby ordered that this Regulation of the Financial Services Authority be
promulgated in the State Gazette of the Republic of Indonesia.
Established in Jakarta,
On December 27, 2018
45 / 75
HEAD OF THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY OF THE

REPUBLIC OF INDONESIA,
Signed.
WIMBOH SANTOSO
Promulgated in Jakarta
On December 28, 2018
MINISTRY OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA,
Signed.
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2018 NUMBER 260
46 / 75
ELUCIDATION OF
REGULATION OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA
NUMBER 35/POJK.05/2018 OF 2018
ON
ORGANIZATION OF THE BUSINESS ACTIVITIES OF FINANCING COMPANIES
I. GENERAL
Regulation of the Financial Services Authority on the Business Implementation of Financing Company
is an effort to improve the Regulation of the Financial Services Authority Number 29/POJK.05/2014 on
the Business Implementation of Financing Company.
As an improvement effort over the Regulation of the Financial Services Authority Number
29/POJK.05/2014 on the Business Implementation of Financing Company, there are adjusted and/or
added content material in this Regulation of the Financial Services Authority, among others:
1. Increasing the role of Financing Company in the national economy, namely minimum productive
business financing, expansion of business activities, financing cooperation, and fintech 2.0 by
Financing Company;
2. Increasing prudential arrangements, namely securities issuance as a source of funding, limits
on financing acquisition incentives, and fraud control and anti fraud strategies; and
3. Increasing consumer protection, namely the transparency of interest rates, the prohibition of
mortgaging proof of collateral and the obligation to return proof of collateral, maintenance of
proof of collateral, and withdrawal and sale of collateral.
This Regulation of the Financial Services Authority is expected to enhance the role of Financing
Company in encouraging national development by creating a healthier, more reliable, trustworthy, and
competitive Financing Company that can be done by improving the Regulation of the Financial
Services Authority on Financing Company.
II. ARTICLE BY ARTICLE
Article 1
Self-Explanatory.
Article 2
Paragraph (1)
Letter a
Self-Explanatory.
Letter b
Self-Explanatory.
Letter c
Self-Explanatory.
Letter d
What is meant by "other financing business activities" are financing activities that resulted in
financing receivables in the balance sheet of a Financing Company, but cannot be classified in
47 / 75
the category of Investment Financing, Working Capital Financing and/or Multipurpose

Financing.
Paragraph (2)
What is meant by "operating lease" is a lease that does not substantially divert the benefits and risks
of leased goods.
What is meant by "Fee-based activities" in this paragraph are activities that can be carried out by a
Financing Company to market financial service products, among others, mutual funds, micro
insurance, or other products related to financial service activities.
Article 3
Letter a
Referred to as "productive" is an attempt to produce goods or services, including businesses that
provide added value and increase revenue for the Debtor.
Letter b
Self-Explanatory.
Article 4
Paragraph (1)
Letter a
Self-Explanatory.
Letter b
Financing by way of Sell and Rent-Behind that included only investment financing category Sell
and Rent-Flip are implemented by way of Lease.
Financing by way of Sell and Rent-Flip are implemented by way of lease financing operations,
excluding investment category.
Letter c
Self-Explanatory.
Letter d
Self-Explanatory.
Letter e
Self-Explanatory.
Letter f
Self-Explanatory.
Letter g
Self-Explanatory.
Letter h
Self-Explanatory.
Paragraph (2)
Letter a
Financing by way of Sell and Rent-forth included Working Capital Financing category only Sell
48 / 75
and Rent-Flip are implemented by way of Lease.

Financing by way of Sell and Rent-Flip are implemented by way of operating leases (operating
lease) does not include the category of Working Capital Financing.
Letter b
Self-Explanatory.
Letter c
Self-Explanatory.
Letter d
Self-Explanatory.
Letter e
Self-Explanatory.
Paragraph (3)
Letter a
Self-Explanatory.
Letter b
Purchase by Installment Payments may be made by the Debtor with credit cards issued by
Financing Company.
With the purchase of Payment In Installments can be implemented for the provision of services
which include health services, education, worship, recreation and other services.
Letter c
Self-Explanatory
Letter d
Self-Explanatory
Article 5
Paragraph (1)
"other financing business activities" is referred to financing business activities for the procurement of
goods and/or services which generate financing receivables in the financial position report of the
Finance Company.
Paragraph (2)
Self-Explanatory.
Paragraph (3)
Self-Explanatory.
Paragraph (4)
Self-Explanatory.
Paragraph (5)
Self-Explanatory.
Paragraph (6)
Self-Explanatory.
49 / 75
Paragraph (7)
Self-Explanatory.
Paragraph (8)
Self-Explanatory.
Paragraph (9)
Self-Explanatory.
Article 6
Self-Explanatory.
Article 7
In the article of association of Financing Company, for the purposes and objectives of the Financing
Company is engaged in the financing sector.
To achieve its purposes and objectives, Financing Company may perform the following activities:
a. Investment Financing;
b. Working Capital Financing;
c. Multipurpose Financing; and/or
d. Additional financing business activities which are based on the approval of the Financial Services
Authority.
Article 8
Paragraph (1)
"transfer substantially" is referred to the accounting standards on lease. Debtors in the scheme of
Finance Lease is a tenant (lessee).
Paragraph (2)
Self-Explanatory.
Article 9
Self-Explanatory.
Article 10
Self-Explanatory.
Article 11
Self-Explanatory.
Article 12
Self-Explanatory.
50 / 75
Article 13
Paragraph (1)
Examples of Infrastructure Financing object:
a. transportation, including seaports, river or lake, airports, railways, and train station;
b. roads, including toll roads and toll bridges;
c. irrigation, including raw water irrigation channel;
d. drinking water, including building for raw water collection, transmission networks, distribution
networks, drinking water treatment plants;
e. waste water, including waste water treatment plant, gathering networks and main networks, and
garbage facilities including transportation and disposal;
f. telecommunications, including telecommunications networks;
g. electricity, including generator, transmission or distribution of electricity; and/or
h. oil and gas, including processing, storage, transportation, transmission, or distribution of oil and
gas.
Paragraph (2)
Self-Explanatory.
Article 14
Self-Explanatory.
Article 15
Paragraph (1)
"consumer needs" is referred to the need for purchasing goods and/or utilizing services which do not
provide added value and/or increase of Debtor revenues.
Paragraph (2)
Self-Explanatory.
Paragraph (3)
Self-Explanatory.
Article 16
Paragraph (1)
Self-Explanatory.
Paragraph (2)
Self-Explanatory.
Paragraph (3)
Self-Explanatory.
Paragraph (4)
Example on the assessment of eligibility:
51 / 75
If based on the monthly report per 30 June 2019 PT ABC Finance has:
− Level of Financial Soundness: Healthy
− level of risk: low
− capital ratio: 50% (fifty percent)
− gearing ratio: 3 (three) times
Therefore, PT ABC Finance may perform activities of Working Capital Financing by providing Venture
Capital Facility and Multipurpose Financing Facility with Fund Facility for the period from 1 August
2019 until 31 January 2020.
If based on the monthly report per December 2020 PT ABC Finance has:
− Level of Financial Soundness: scrofulous
− level of risk: low moderate
− capital ratio: 20% (two percent)
− gearing ratio: 5 (five) times
Therefore, such Financing Company is prohibited from conducting Financing Working Capital by
providing Venture Capital and Multipurpose Financing Facility by Fund Facility for the period 1
February 2020 until 31 July 2020.
Paragraph (5)
Self-Explanatory.
Article 17
Letter a
Self-Explanatory.
Letter b
"collateral" is referred to a guarantee from the Debtor for the distribution of funding which is useful to
guarantee the repayment of the financing in the event of Debtor is default.
Letter c
"credit information management agency" is referred to the management agency of credit information
as referred to in laws and registration on credit information management agency.
Letter d
Self-Explanatory.
Article 18
Paragraph (1)
"integrated technology and information system" is referred to information systems and technology
which combine the activities, programs, or different hardware components into one functional unit.
Paragraph (2)
Self-Explanatory.
52 / 75
Article 19
Paragraph (1)
"conducts its business activities through information technology" is referred to the Financing Company
to implement:
a. marketing activities;
b. application for Financing; and
c. monitoring of installment payment,
through an electronic system by using the internet network. Electronic system is a series of electronic
devices and procedures which has the function to prepare, collect, process, analyze, store, display,
publish, transmit, and/or disseminate electronic information in financial services sector.
Paragraph (2)
Self-Explanatory.
Article 20
Paragraph (1)
Self-Explanatory.
Paragraph (2)
Self-Explanatory.
Paragraph (3)
Self-Explanatory.
Paragraph (4)
Self-Explanatory.
Paragraph (5)
Self-Explanatory.
Paragraph (6)
Self-Explanatory.
Paragraph (7)
Self-Explanatory.
Paragraph (8)
Self-Explanatory.
Paragraph (9)
Letter a
Self-Explanatory.
Letter b
"security interest in receivables financing" are as follows:
a. credit insurance or credit insurance in accordance with laws and regulations; and/or
b. underwriting of financing receivables from the relevant corporation.
53 / 75
Article 21
Paragraph (1)
Self-Explanatory.
Paragraph (2)
Example of application of the amount of Down Payment:
If based on the monthly report of Financing Company per 30 June 2019 Financing Company has a
value ratio of NPF Neto for vehicle financing is higher than 5% (five percent), financing company shall
impose a provision of Down Payment amount for Motor Vehicles Financing as referred to in Article 20
(5).
Application of Down Payment amount for Motor Vehicles Financing is valid from 1 August 2019 to 31
January 2019. If based on the monthly reports of Financing Company per 31 December 2019
Financing Company has a Financial Soundness with healthy criteria and values of Net NPF ratio for
motor vehicle financing by 3,5% (three-point five percent), the financing company shall impose
provision of Down Payment amount for Motor Vehicle Financing as referred to in Article 20 (3).
Application of Down Payment amount for Motor Vehicles Financing is valid from 1 February, 2020 to
31 July 2020. If based on the Financing Company monthly reports per 30 June 2020 Financing
Company has Financial Soundness Level with the category of very healthy and value Net NPF ratio
for motor vehicle financing for 0.5% (zero point five per cent), the Financing Company shall impose the
provision of the Down Payment amount for Motor Vehicle Financing as referred to in Article 20
paragraph (1).
Application of Down Payment amount for Motor Vehicles Financing is valid from 1 August 2020 until 31
January 2021.
Paragraph (3)
Example of calculation for the Down Payment amount: if the price of two-wheeled vehicles:
Rp10,000,000.00 discounts and other discounts given: Rp500.000,00 The selling price of two-wheeled
vehicles: Rp10,000,000.00 - Rp500.000,00 = Rp9.500.000,00 For Financing Company which meets
the criteria as referred to in the Article 20 paragraph (3), Down Payment for Financing of Motor
Vehicles shall be charged and paid in cash at once is 15% x Rp9.500.000,00 = Rp1.425.000,00.
Paragraph (4)
Example of calculation for the Down Payment amount:
Example (insurance costs, guarantees, or other costs paid in cash by the Debtor): The price of two-
wheeled motor vehicles: Rp10,000,000.00 discounts and other discounts given: Rp500.000,00
insurance costs, guarantee, or other costs paid by the Debtor in cash: 1,000,000.00 Selling price of
two-wheeled motor vehicles: Rp10,000,000.00 - Rp500.000,00 = Rp9.500.000,00 For Financing
Company which meet the criteria as referred to in the Article 20 paragraph (3) Down Payment for two-
wheeled Motor Vehicle Financing to be charged and paid in cash at once is 15% x Rp9.500.000,00 =
Rp1.425.000,00 thus, the costs which are paid by the Debtor in cash at once (the cost of insurance,
guarantee, or other fees paid in cash by the Debtor) = Down Payment (Rp1.425.000,00) + insurance
costs, guarantee, or other fees (1,000,000.00) = Rp2.425.000,00 Total financing by the Financing
Company to Debtor = the selling price of the vehicle (Rp9.500.000,00) – Down Payment
(Rp1.425.000,00) = Rp8.075.000,00
Example 2 (the cost of insurance, guarantees, or other costs are not paid in cash (installments) by the
Debtor): The price of two-wheeled motor vehicles: Rp10,000,000.00 discounts and other discounts
given: Rp500.000,00 insurance fee , guarantees, or other costs: 1,000,000.00 selling price of two-
wheeled motor vehicles: Rp10,000,000.00 - Rp500.000,00 = Rp9.500.000,00 For Financing
Companies which meet the criteria as referred to in the Article 20 paragraph (3),Down Payment for
motor vehicles Financing shall be charged for 15% x Rp9.500.000,00 = Rp1.425.000,00 thus, the
costs which are paid by the Debtor if the insurance costs, guarantees, or other fees are not paid in
cash by the Debtor or paid installment = Down Payment (Rp1.425.000,00) Total financed by the
54 / 75
Financing Company to Debtor = insurance cost, guarantee, or other expenses (1,000,000.00) + the
price of two-wheeled motor vehicle financing (Rp8.075.000,00) = Rp9.075.000,00.
Paragraph (5)
Self-Explanatory.
Article 22
Paragraph (1)
" incentives cost of financing acquisition to third parties" are all types of payments to third parties or
employees of a third party for the acquisition of businesses, among others:
1. commission payments to providers of goods and/or services which is paid in cash;
2. incentive target;
3. travel costs of third parties;
4. joint promotion costs;
5. income tax; and/or
6. other expenses which are related to the financing acquisition which is paid to the third parties.
Examples of limitation on financing incentive fees to third parties which are related to financing
acquisition
PT XYZ Finance channel financing of motor vehicle to a Debtor in a financing agreement with the
financing value of Rp 100,000,000.00.
Through the financing, PT XYZ Finance earn income as follows:
1. revenue on interest in the amount of Rp43.000.000,00;
2. revenue on insurance discounts in the amount of Rp15,000,000.00;
3. revenue on administration in the amount of Rp1.000.000,00; and
4. revenue provision in the amount of Rp1.000.000,00.
Thus, the maximum total cost of acquisition which is related to incentive costs for third party related to
financing acquisition could be given to the Debtor is in the amount of = (17.5% x (Rp43.000.000,00 +
Rp15,000,000.00 + 1,000,000.00 + Rp1 .000.000,00)) = Rp10.500.000
The total cost of these incentives has accounted commissions to providers of goods and/or services
which are paid in cash, the incentive target, the cost of travel of third parties, cost of joint promotions,
and/or income taxes, and other costs which are associated with the financing acquisition which were
paid to the third parties.
Paragraph (2)
Self-Explanatory.
Article 23
Paragraph (1)
Example of BMPP calculation to all stakeholders: Based on data from the monthly report of 30 April
2022, PT XYZ Finance has Equity in the amount of Rp1 trillion. PT ABC is a company associated with
PT XYZ Finance. PT XYZ Finance also has disbursed financing to related parties, including PT ABC
amounting to Rp450 billion.
On 5 May 2022, PT ABC obtains new financing ceiling of Rp 100 billion with the disbursement is done
in stages as follows:
55 / 75
First Stage is withdrew on 5 May 2022 amounted to Rp30 billion and the second stage is disbursed on
12 May 2022 with a value of 70 billion.
In the first disbursement on 5 May 2022, PT XYZ Finance does not violate the provisions of BMPP for
all the relevant parties with the following calculation:
Equity per 30 April 2022 is Rp1 trillion
BMPP to all related parties is 50% x 1 trillion = 500 billion
Total Outstanding Principal per 5th May 2022 = Rp450 billion + 30 billion = Rp480 billion (48% of the
equity value).
In the second disbursement on 12 May 2022, PT XYZ Finance violates the terms of BMPP for all
relevant parties with the following calculation:
BMPP to all related parties is 50% x 1 trillion = 500 billion
Total Outstanding Principal per May 12th 2022 = Rp450 billion + 30 billion + 70 billion = Rp550 billion
(55% of the equity value).
Paragraph (2)
Self-Explanatory.
Paragraph (3)
Self-Explanatory.
Paragraph (4)
Letter a
"controller" is referred to a party who is directly or indirectly has the ability to appoint the
management, board of directors, or equivalent to the board of directors or board of
commissioners in a legal entity in the form of a cooperative and/or influence the actions of
directors, commissioners, or an equivalent directors or commissioners in a legal entity in the
form of a cooperative.
Letter b
Self-Explanatory.
Letter c
Self-Explanatory.
Letter d
Self-Explanatory.
Letter e
Self-Explanatory.
Letter f
"family relationship to the second degree horizontal as well as vertical "are the following:
1. biological/step/adopted parent;
2. biological/step/adopted siblings;
3. biological/step/adopted children;
4. biological/step/adopted grandparents;
5. biological/step/adopted grandchildren;
56 / 75
6. biological/step/adopted siblings of the parents;

7. husband or wife;
8. in laws;
9. husband or wife from biological/step/adopted children;
10. Grandparents of husband or wife;
11. husband or wife of the biological/step/adopted; and
12. biological/step/adopted siblings from the husband or wife as well as their husband or wife
from the relevant sibling.
Letter g
"directors of business entity which is not in the form of limited liability company or a cooperative"
are parties who conduct management function as determined in laws and regulations. "board of
directors for business entities which are not in the form of limited liability company or a
cooperative" are parties who conduct supervisory and advisory functions as determined in laws
and regulations.
Letter h
Self-Explanatory.
Letter i
Self-Explanatory.
Letter j
Self-Explanatory.
Paragraph (5)
Self-Explanatory.
Article 24
Paragraph (1)
Example of BMPP calculation per 1 (one) not associated parties:
On 30 April 2022, PT MAS has a total value of Outstanding Principal on PT XYZ Finance amounting to
Rp140 billion. Based on the data from the Monthly Report of 30 April 2022, PT XYZ Equity Finance
has Equity in the amount of Rp1 trillion. PT MAS is not an entity associated with PT XYZ Finance.
On 5 May 2022, PT MAS obtains a new financing ceiling in the amount of Rp 100 billion with the
disbursement is conducted in the stages as follows:
1. The first stage is liquefied on 5 May 2022 in the amount of Rp30 billion; and
2. The second stage is withdrew on 12 May 2022 with a value of 70 billion.
In the first disbursement on 5 May 2022, PT XYZ Finance does not violate the provisions of BMPP per
Debtor is not a party associated with the following calculation:
BMPP per debtor not associated parties is 20% x 1 trillion = 200 billion
Total Outstanding Principal per 5th May 2022 = Rp140 billion + 30 billion = Rp170 billion (17% of the
equity value).
In the second disbursement on 12 May 2022, PT XYZ Finance violates the provisions of BMPP per
Debtor is not a party associated with the following calculation:
57 / 75

BMPP per Debtor is not a related party 20% x 1 trillion = 200 billion.
Total Outstanding Principal per 12th May 2022 = Rp140 billion + 30 billion + 70 billion = Rp240 billion
Paragraph (2)
Examples of BMPP provisions to 1 (one) Debtor group which is not a associated party:
Based on the data from the monthly report of 30 April 2022, PT XYZ Equity Finance has Equity Rp1
trillion. PT MAS is not an entity associated with PT XYZ Finance. PT XYZ Finance also has disbursed
financing to other companies in the 1 group which is affiliated with PT MAS amounting to Rp450
billion.
On 5 May 2022, PT MAS obtain a new financing ceiling in the amount of Rp 100 billion with
disbursement is conducted in stages as follows:
1. The first stage is liquefied on 5 May 2022 of Rp30 billion; and
2. The second stage is withdrew on 12 May 2022 with a value of 70 billion.
In the first disbursement on 5 May 2022, PT XYZ Finance does not violate the BMPP Debtor group
who is not a related party with the calculation as follows: Equity per 30 April 2022 Rp1 trillion.
BMPP Debtor group who is not a related party = 50% x 1 trillion = 500 billion
Total Outstanding Principal per May 5th 2022 = Rp450 billion + 30 billion = Rp480 billion (48% of the
equity value).
In the second disbursement on 12 May 2022, PT XYZ Finance violates the provisions of BMPP Debtor
group who is not an associated party of the calculation as follows: Equity per 30 April 2022 is Rp1
trillion
BMPP Debtor group who is not an associated party = 50% x 1 trillion = 500 billion
Total Outstanding Principal per 12th May 2022 = Rp450 billion + 30 billion + 70 billion = Rp550 billion
Paragraph (3)
Self-Explanatory.
Paragraph (4)
Self-Explanatory.
Paragraph (5)
Self-Explanatory.
Article 25
"financing for the procurement of goods and/or services in the government program" is financing for:
a. food procurement;
b. procurement of simple household;
c. procurement/provision/management of oil and gas and other natural sources of energy equivalent
replacement;
d. procurement/processing of export-oriented commodities;
e. procurement/provision/management of water;
f. procurement/provision/management of electricity; and/or
58 / 75
g. provision of supporting infrastructure for land, sea, and air in the form of construction of roads, bridges,
railways, ports and airports another.
Article 26
Paragraph (1)
"financing risk mitigation" is referred to an effort which is undertaken by the financing companies to
reduce the risk which is borne by the financing company because of the inability/failure of the Debtor's
obligation to pay to the financing companies.
Paragraph (2)
Self-Explanatory.
Article 27
Self-Explanatory.
Article 28
Self-Explanatory.
Article 29
Self-Explanatory.
Article 30
Paragraph (1)
These provisions shall apply if the financing agreements contain Paragraphs either in the imposition of
fiduciary principal financing agreement or in a separate document.
Paragraph (2)
Self-Explanatory.
Article 31
Self-Explanatory.
Article 32
Self-Explanatory.
Article 33
Self-Explanatory.
Article 34
Paragraph (1)
Letter a
59 / 75
Self-Explanatory.
Letter b
Self-Explanatory.
Letter c
"joint financing" is referred to a collaboration with other parties through forwarding financing
(channeling) or co-financing (joint financing) which are conducted in accordance with laws and
regulations.
Letter d
Self-Explanatory.
Letter e
Self-Explanatory.
Letter f
Self-Explanatory.
Letter g
Self-Explanatory.
Letter h
Self-Explanatory.
Letter i
Self-Explanatory.
Letter j
Self-Explanatory.
Letter k
Self-Explanatory.
Letter l
Self-Explanatory.
Letter m
Self-Explanatory.
Letter n
Self-Explanatory.
Letter o
Self-Explanatory.
Letter p
Self-Explanatory.
Letter q
Self-Explanatory.
Letter r
Self-Explanatory.
Letter s
60 / 75
Self-Explanatory.
Letter t
Self-Explanatory.
Paragraph (2)
Self-Explanatory.
Paragraph (3)
Self-Explanatory.
Article 35
Self-Explanatory.
Article 36
Self-Explanatory.
Article 37
The interest rate financing may be specified in the form of an effective interest rate or a flat interest rate.
Article 38
Self-Explanatory.
Article 39
Paragraph (1)
Self-Explanatory.
Paragraph (2)
Self-Explanatory.
Paragraph (3)
What is meant by "forwarding with guaranteed financing scheme (channeling with recourse)" is the
forwarding financing from other parties on Financing Company by requiring the Financing Company to
bear the entire / part of the financing risks.
What is meant by "joint financing with guarantees (joint financing with recourse)" is a joint inter-
company financing with other parties by requiring Financing Company to bear all / part of the financing
risks beyond the portion of the risk which should be borne by the Financing Company based on the
amount of funds expended.
Examples of joint financing with guarantees (joint financing with recourse) ", among others, are if
under an agreement with the provider of funds it is regulated that when the debtor of the Financing
Companies fail to make payment, the Financing Company must replace the debtor with other debtor
which have current receivables financing quality or the Financing Company must still pay the provider
as Debtor’s substitute installment.
Paragraph (4)
Letter a
61 / 75
Self-Explanatory.
Letter b
Self-Explanatory.
Letter c
Self-Explanatory.
Letter d
Self-Explanatory.
Letter e
Self-Explanatory.
Letter f
Self-Explanatory.
Letter g
"other institutions" are among others savings and credit cooperatives.
Paragraph (5)
Self-Explanatory.
Article 40
Self-Explanatory.
Article 41
Self-Explanatory.
Article 42
What is meant by "adequate information system and technology" is a technology systems which have met
the requirements of the law and regulations on information and electronic transactions.
Article 43
Paragraph (1)
Self-Explanatory.
Paragraph (2)
Self-Explanatory.
Paragraph (3)
What is meant by "risk mitigation" among others are Financing Company possessing a storage area
that meets safety standards to keep the proof of ownership over the object of financing or deposited in
a deposit (custodian.
Paragraph (4)
The meaning of "safety standards" includes fireproof, termite-resistant safes, and a room which has a
fire prevention system.
What is meant by "deposit (custodian)" among others are custodian banks, pawnshops company and /
62 / 75
or companies which are engaged in the storage services business.
Article 44
Self-Explanatory.
Article 45
Self-Explanatory.
Article 46
Paragraph (1)
The definition of "settlement of accounts receivable financing" is the Debtor has made payment of all
liabilities to the Financing Company.
Paragraph (2)
Self-Explanatory.
Article 47
Paragraph (1)
What is meant by "billing" is all efforts made by Financing Company to obtain their rights to Debtor's
obligation of paying the installments, including foreclosure of collateral in case of default Debtor.
Paragraph (2)
Self-Explanatory.
Article 48
Paragraph (1)
Self-Explanatory.
Paragraph (2)
Self-Explanatory.
Paragraph (3)
Letter a
Self-Explanatory.
Letter b
Self-Explanatory.
Letter c
Self-Explanatory.
Paragraph (4)
What is meant by "full responsibility" is that Financing Company takes full responsibility for any impact
from the cooperation with other parties as long as said other party is acting in accordance with the
cooperation agreement.
Paragraph (5)
63 / 75
Self-Explanatory.
Article 49
Self-Explanatory.
Article 50
Paragraph (1)
Letter a
The definition of "default" is debtor's inability to meet the obligations as specified in the
Financing agreement.
Letter b
Self-Explanatory.
Letter c
Self-Explanatory
Paragraph (2)
Self-Explanatory.
Paragraph (3)
Self-Explanatory.
Paragraph (4)
Self-Explanatory.
Article 51
Self-Explanatory.
Article 52
Self-Explanatory.
Article 53
Paragraph (1)
The definition of "fraud" is the act of deviation or negligence deliberately conducted to deceive, cheat,
or manipulate Financing Company, Debtor, or any other party, which took place within the Financing
Company and / or by using Financing Company’s facilities which causes the Financing Company,
Debtor, or other parties to suffer losses and / or perpetrators of the financial fraud to benefit, either
directly or indirectly, from it.
Paragraph (2)
Self-Explanatory.
Article 54
Self-Explanatory.
64 / 75
Article 55
Self-Explanatory.
Article 56
Paragraph (1)
Self-Explanatory.
Paragraph (2)
Letter a
Self-Explanatory.
Letter b
Self-Explanatory.
Letter c
Self-Explanatory.
Letter d
Self-Explanatory.
Letter e
Included in the data security, Financing Company shall have an adequate sustainable program.
Control of information systems should be accompanied with the availability of the accounting
system to ensure the use of accurate and consistent data in Finance Company’s financial
recording and reporting, among others through regular reconciliation or verification of data.
Letter f
Self-Explanatory.
Article 57
Self-Explanatory.
Article 58
Paragraph (1)
Self-Explanatory.
Paragraph (2)
Letter a
Deviations committed by the Debtor, among others are in the process of applying for financing
provision, loan payments, and / or execution of collateral.
Letter b
Deviations committed by Financing Company are to work exclusively or in collusion with the
Financing Company's internal or external parties.
Letter c
Which is included in the "other party" among others are motor vehicle dealers, insurance
65 / 75
companies, and legal entities who cooperate with Financing Company to perform the functions
of billing and / or execution of collateral.
Deviations committed by other parties who cooperate with Financing Company to perform the
function of billing and / or execution of collateral to the Debtor which include embezzlement of
executed collateral and / or damage to the collateral.
Article 59
Self-Explanatory.
Article 60
Letter a
Number 1
Example of the preparation and dissemination of anti-fraud statement, among others, is the
policy of zero tolerance towards fraud.
Number 2
Examples of employee awareness program include seminars or anti-fraud related discussions,
training, and publications on the understanding of the forms of fraud, transparency of the results
of the investigation, and follow-up of fraud on an ongoing basis.
Number 3
Examples of customer awareness programs among other are anti-fraud brochures, written
explanation or explanation conducted through other means to raise awareness and alertness of
the policyholder, the insured, or the participants to the possibility of fraud.
Letter b
Number 1
Self-Explanatory.
Number 2
What is meant by "interested parties" include internal auditors, members of the Board of
Commissioners, external auditors, and / or the Financial Services Authority.
Number 3
Self-Explanatory.
Letter c
Number 1
Through this system, it is expected that a complete and accurate overview of the track record of
the candidates (pre-employee screening) may be obtained.
Number 2
Said system shall be able to reach the implementation of promotion and transfer, including the
placement in a position that has a high risk of fraud.
Number 3
What is meant by "know your employee", among others, includes the introduction and
monitoring of the character, behavior, and lifestyles of the employees.
66 / 75
Article 61
Self-Explanatory.
Article 62
Self-Explanatory.
Article 63
Self-Explanatory.
Article 64
Paragraph (1)
Letter a
Provisions concerning reports on the implementation of good corporate governance of
Financing Company shall refer to the Regulation of the Financial Services Authority regarding
good corporate governance of financing companies.
Letter b
Self-Explanatory.
Paragraph (2)
Self-Explanatory.
Paragraph (3)
Self-Explanatory.
Article 65
Self-Explanatory.
Article 66
Paragraph (1)
Self-Explanatory.
Paragraph (2)
For example, if a member of the Board of Directors declared approved by the Financial Services
Authority as a member of the Board of Directors of PT ABC Finance on May 1, 2019, then the period
to fulfill sustainable requirements of the first annual periods shall be between January 1, 2020 and
December 31, 2020 of the calendar year.
Paragraph (3)
Self-Explanatory.
Paragraph (4)
Self-Explanatory.
Paragraph (5)
Self-Explanatory.
67 / 75
Article 67
Self-Explanatory.
Article 68
Paragraph (1)
Letter a
Self-Explanatory.
Letter b
Companies that are related to the Financing Company activities among others are motor vehicle
dealers, credit information management institutions, providers of outsourcing in the areas of
billing, and / or surveyor.
Paragraph (2)
Self-Explanatory.
Paragraph (3)
Self-Explanatory.
Paragraph (4)
Self-Explanatory.
Paragraph (5)
Self-Explanatory.
Article 69
Paragraph (1)
Letter a
Self-Explanatory.
Letter b
The meaning of "other institution and / or business entity" may come from:
a. Indonesian institutions and / or business entity; and / or
b. foreign institutions and / or entities.
Letter c
Self-Explanatory.
Letter d
Self-Explanatory.
Letter e
Self-Explanatory.
Letter f
Self-Explanatory.
Paragraph (2)
68 / 75
Included in the "agreement" among others are loan agreement, prospectus, and / or memorandum of
information (information memorandum).
Article 70
Self-Explanatory.
Article 71
Self-Explanatory.
Article 72
Self-Explanatory.
Article 73
Self-Explanatory.
Article 74
Self-Explanatory.
Article 75
Self-Explanatory.
Article 76
Self-Explanatory.
Article 77
Self-Explanatory.
Article 78
Self-Explanatory.
Article 79
Paragraph (1)
Self-Explanatory.
Paragraph (2)
PT ABC Finance which has Equity amounting to IDR 320 billion and paid-up capital amounting to IDR
160 billion gain total funding in the amount as follows:
1. loans received from Bank XYZ amounting to IDR 400 billion;
2. issuance of bonds amounting to IDR 88 billion;
69 / 75
3. subordinated loans received from shareholders amounting to IDR52 billion;

4. the issuance of medium-term notes amounting to IDR 100 billion.
PT ABC Finance also holds an equity interest in PT XYZ which amounts to IDR 80 billion. Thus, the
gearing ratio value of PT ABC Finance are as follows:
Gearing ratio =
(Loans from banks + issuance + subordinated loans + issuance of medium-term notes)
(Equity + subordinated loans) - participation
(IDR 400 billion + IDR 88 billion + IDR 52 billion + 100 billion)

gearing ratio =
(IDR 320 billion + IDR 52 billion) – IDR 80 billion
PT ABC Finance gearing ratio = 2,19
Paragraph (3)
Self-Explanatory.
Article 80
Paragraph (1)
Self-Explanatory.
Paragraph (2)
In the event that thef Financing Company has receives financing, channels financing, and receives
payments in the same currency, the concerned shall be deemed as has conducted natural hedge as
an effort to hedge.
Article 81
Self-Explanatory.
Article 82
Letter a
Self-Explanatory.
Letter b
Self-Explanatory.
Letter c
Self-Explanatory.
Letter d
Included in "promissory note", among others, is commercial paper which has a term of up to one (1)
year.
Letter e
Self-Explanatory.
Letter f
70 / 75
Self-Explanatory.
Article 83
Self-Explanatory.
Article 84
Self-Explanatory.
Article 85
Paragraph (1)
What is meant by "funding" is the sum of loans, subordinated loans and debt securities issued both
through public offerings and not through public offerings.
Paragraph (2)
What is meant by set realistically is the net ratio of the Financing Receivable Account Balance
(Outstanding Principal) to total loans shall be arranged by considering the external and internal factors
that could affect the development of the Financing Company's business, the prudential principle, and
the principle of sound financial services institutions, as so it shall be measurable and achievable.
Paragraph (3)
Self-Explanatory.
Article 86
Self-Explanatory.
Article 87
Self-Explanatory.
Article 88
Self-Explanatory.
Article 89
Self-Explanatory.
Article 90
Self-Explanatory.
Article 91
Assessment to the quality of financing receivables shall be made on the Financing Receivable Account
Balance (Outstanding Principal) and not by the amount of the principal and / or interest that was due.
Step which may be taken by Financing Company to ensure that the receivables financing remains as good
71 / 75
financing, among others, is the proper implementation of standards and operating procedures and periodic
monitoring to the quality of the receivables.
Article 92
Self-Explanatory.
Article 93
Self-Explanatory.
Article 94
Self-Explanatory.
Article 95
Self-Explanatory.
Article 96
Self-Explanatory.
Article 97
Self-Explanatory.
Article 98
Self-Explanatory.
Article 99
Self-Explanatory.
Article 100
Self-Explanatory.
Article 101
Self-Explanatory.
Article 102
Self-Explanatory.
Article 103
72 / 75
Self-Explanatory.
Article 104
Self-Explanatory.
Article 105
Paragraph (1)
Self-Explanatory.
Paragraph (2)
Self-Explanatory.
Paragraph (3)
Self-Explanatory.
Paragraph (4)
Self-Explanatory.
Paragraph (5)
Provisions concerning the registration of public accountants shall refer to the Regulation of the
Financial Services Authority on the use of public accountants and public accounting firms’ services in
the financial institutions’ activities.
Paragraph (6)
Self-Explanatory.
Article 106
Self-Explanatory.
Article 107
Self-Explanatory.
Article 108
Self-Explanatory.
Article 109
Self-Explanatory.
Article 110
Self-Explanatory.
Article 111
Self-Explanatory.
73 / 75
Article 112
Self-Explanatory.
Article 113
Paragraph (1)
Self-Explanatory.
Paragraph (2)
Self-Explanatory.
Paragraph (3)
Self-Explanatory.
Paragraph (4)
Self-Explanatory.
Paragraph (5)
Self-Explanatory.
Paragraph (6)
Included in "business activities" are the distribution of new financing and recipient of new funding.
Paragraph (7)
Self-Explanatory.
Paragraph (8)
Self-Explanatory.
Paragraph (9)
Self-Explanatory.
Paragraph (10)
Self-Explanatory.
Paragraph (11)
Self-Explanatory.
Paragraph (12)
Self-Explanatory.
Paragraph (13)
Self-Explanatory.
Article 114
Self-Explanatory.
Article 115
Self-Explanatory.
74 / 75
Article 116
Self-Explanatory.
Article 117
Self-Explanatory.
Article 118
Self-Explanatory.
Article 119
Self-Explanatory.
Article 120
Self-Explanatory.
Article 121
Self-Explanatory.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6286
DISCLAIMER
"This translation was produced by Hukumonline and Translator Indonesia for the purpose of understanding Indonesian law only and does not constitute
an official translation published by the Indonesian Government. Hukumonline has made every effort to ensure the accuracy and completeness of the
information that is contained within this translation, however, we are not responsible for any errors, omissions and/or mistakes that occur in the source
text. Hukumonline reserves the right to change, modify, add or remove any errors or omissions without any prior notification being given. These services
are not intended to be used as legal references, advice and/or opinions and no action should be taken as regards the reliability of any of the information
contained herein without first seeking guidance from professional services."
75 / 75

(ENG Ver) POJK 35.POJK.05.2018 Tentang Penyelenggaraan Usaha Perusahaan Pembiayaan PDF

Uploaded by

Copyright:

Available Formats

You might also like

(ENG Ver) POJK 35.POJK.05.2018 Tentang Penyelenggaraan Usaha Perusahaan Pembiayaan PDF

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

(ENG Ver) POJK 35.POJK.05.2018 Tentang Penyelenggaraan Usaha Perusahaan Pembiayaan PDF

Uploaded by

Copyright:

Available Formats

www.hukumonline.

REGULATION OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA

BY THE GRACE OF GOD ALMIGHTY

BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

d. the rights and obligations of the parties; and

schemes as referred to in the Article 4 Paragraph (1) letter a to letter e.

of the vehicle in question;

2. commissioners or directors of the entities as referred to in letter a through letter d;

(1) Financing Company is obligated to mitigate financing risk.

6. notary fees (if any); and / or

implementation of tasks and fraud control;

d. the adequacy of the resources needed.

d. brief information on mode; and

b. association of financial institutions at home and abroad;

c. projected financial statements;

b. subordinated loans as referred to in the Article 69 Paragraph (1) c;

a. The Debtor's ability to pay;

Reserves for the Loss of Receivables Financing Value

SUBMISSION OF PERIODIC REPORTS

or a business entity merger plan.

HEAD OF THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY OF THE

STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2018 NUMBER 260

II. ARTICLE BY ARTICLE

the category of Investment Financing, Working Capital Financing and/or Multipurpose

and Rent-Flip are implemented by way of Lease.

− level of risk: low

− capital ratio: 50% (fifty percent)

− gearing ratio: 3 (three) times

− level of risk: low moderate

− capital ratio: 20% (two percent)

− gearing ratio: 5 (five) times

6. biological/step/adopted siblings of the parents;

Equity per 30 April 2022 is Rp1 trillion

or companies which are engaged in the storage services business.

3. subordinated loans received from shareholders amounting to IDR52 billion;

(Equity + subordinated loans) - participation

(IDR 400 billion + IDR 88 billion + IDR 52 billion + 100 billion)

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6286

You might also like