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DECREE OF THE HEAD OF CAPITAL MARKET AND FINANCIAL INSTITUTIONS SUPERVISORY

AGENCY
NUMBER KEP-479/BL/2009 OF 2009
ON
LICENSING FOR SECURITIES COMPANIES WHICH CONDUCT BUSINESS ACTIVITY AS INVESTMENT
MANAGERS

THE HEAD OF CAPITAL MARKET AND FINANCIAL INSTITUTIONS SUPERVISORY AGENCY,

Considering:
a. that for the purpose of improving the quality and professionalism of Investment Managers, it has been
deemed necessary to have a mechanism to ensure that Investment Managers has the ability to
perform their duties and functions well, in order to realize capital market which is orderly, proper, and
efficient;
b. That Investment Managers have different business characteristics compared to Securities Brokers and
Securities Underwriters, so that it is necessary to have specific rules for Investment Managers,
specifically Licensing for Securities Companies which Conduct Business Activity as Investment
Managers;
c. That based on the consideration as referred to in letter a and letter b, it has been deemed necessary
to establish Decree of the Head of Capital Market and Financial Institutions Supervisory Agency on
Licensing for Securities Companies which Conduct Business Activity as Investment Managers;

Observing:
1. Law Number 8 of 1995 on Capital Market (State Gazette of the Republic of Indonesia of 1995 Number
64, Supplement to the State Gazette of the Republic of Indonesia Number 3608);
2. Regulation of the Government Number 45 of 1995 on Implementation of Activities in Capital Market
Sector (State Gazette of the Republic of Indonesia of 1995 Number 86, Supplement to the State
Gazette of the Republic of Indonesia Number 3617) as amended by Regulation of the Government
Number 12 of 2004 (State Gazette of the Republic of Indonesia of 2004 Number 27, Supplement to
the State Gazette of the Republic of Indonesia Number 4372);
3. Regulation of the Government Number 46 of 1995 on Procedures for the Examination in Capital
Market Sector (State Gazette of the Republic of Indonesia of 1995 Number 87, Supplement to the
State Gazette of the Republic of Indonesia Number 3618);
4. Decree of the President of the Republic of Indonesia Number 45/M of 2006;

HAS DECIDED:

To establish:
DECREE OF THE HEAD OF CAPITAL MARKET AND FINANCIAL INSTITUTIONS SUPERVISORY
AGENCY ON LICENSING FOR SECURITIES COMPANIES WHICH CONDUCT BUSINESS ACTIVITY AS
INVESTMENT MANAGERS

Article 1
The provisions on Licensing for Securities Companies which Conduct Business Activity as Investment

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Managers is regulated in Rule Number V.A.3 as contained in Appendix to this Decree.

Article 2
(1) Securities Companies which have owned business license as Investment Manager prior to the
enforcement of this Decree, must adjust with the provisions set in Rule Number V.A.3 of Appendix to
this Decree within one year at the latest since the enforcement of this Decree.
(2) The one-year-period as referred to in paragraph (1) does not apply for:
a. The provision in Rule Number V.A.3 of Appendix to this Decree which is substantially equal with
the provision which is regulated in Rule Number V.A.1 on Licensing for Securities Companies;
and
b. Provision number 1 letter c of Rule Number V.A.3 of Appendix to this Decree.

Article 3
(1) Investment Managers who during the enforcement of this Decree is conducting:
a. Customer fund management based on bilateral and individual fund management agreement
however not all of them is managed in Securities Portfolio; and/or
b. Customer fund management based on bilateral and individual fund management however such
customer fund is managed in one investment portfolio for the benefit of a group of customer,
must adjust with the provision number 1 letter c of Rule Number V.A.3 appendix to this Decree
until termination of agreement period as referred to in letter a and/or letter b or within 2 (two)
years at the latest since the enforcement of this Decree, whichever terminates first.
(2) Agreement as referred to in paragraph (1) letter a and letter b which its period has terminated may be
extended insofar that it is in accordance with the provision number 1 letter c of Rule Number V.A.3 of
the appendix to this Decree.
(3) Since the enforcement of this Decree, Investment Manager is prohibited to draw up a new agreement
which is not in accordance with the provision number 1 letter c of Rule Number V.A.3 of the appendix
to this Decree.

Article 4
With the enforcement of this Decree, all provision in Rule Number V.A.1 on Licensing for Securities
Companies insofar that it is related with Securities Companies which conduct business activity as Investment
Manager, is declared invalid for Investment Managers.

Article 5
This Decree comes into force from the date of its promulgation.

Established in Jakarta,
On 31 December 2009
THE HEAD OF CAPITAL MARKET AND FINANCIAL INSTITUTIONS SUPERVISORY AGENCY,
Signed.
A. FUAD RAHMANY

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NIP 060063058

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APPENDIX TO
DECREE OF THE HEAD OF BAPEPAM AND LK
NUMBER KEP-479/BL/2009 OF 2009

RULE NUMBER V.A.3:

LICENSING FOR SECURITIES COMPANIES WHICH CONDUCT BUSINESS ACTIVITY AS INVESTMENT
MANAGER

1. GENERAL PROVISIONS
a. Investment Manager is Investment Manager as referred to in Law Number 8 of 1995 on Capital
Market.
b. Parties who may conduct business activity as Investment Manager are Securities Companies
which have obtained a business license as Investment Manager from Bapepam and LK.
c. Investment Manager may conduct business activity in the form of:
1) Management of Securities portfolio for the benefit of a certain customer based on bilateral
and individual fund management agreement which is drawn up in accordance with
regulation of Bapepam and LK;
2) Management of collective investment portfolio for the benefit of a group of customers
through products which are regulated in regulation of Bapepam and LK; and/or
3) Other activity in accordance with the provision which is regulated by Bapepam and LK.
d. Investment Manager who does not own business license as Investment Advisor may conduct
activity as Investment Advisor, insofar that they do not collect fees for advice on Securities sales
or purchase which is provided for its customer.
2. CONTROLLER AND SHAREHOLDERS
a. Investment Manager is prohibited to be controlled, both directly or indirectly by individual who:
1) Has committed a disgraceful act and/or punished due to proven to commit a criminal act
in the financial sector;
2) Does not have a good character and moral;
b. Controller and shareholders of Investment Manager must fulfill the following requirements:
1) Integrity requirement, which consists of:
a) Has never been committed a disgraceful act and/or is punished due to proven to
commit a criminal act in the financial sector;
b) Has a good character and moral;
c) Has high commitment to comply with prevailing laws and regulations; and
d) Has high commitment towards the sound development of Investment Manager
operational; and
2) Financial feasibility requirement, which consists of:
a) Financial capability;
b) Has never been declared bankrupt; and
c) Has never become a manager or supervisor of a company which based on the
decision of the General Meeting of the Shareholders (Rapat Umum Pemegang
Saham/RUPS) or other organs which are equivalent to RUPS, is declared to be

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responsible for the bankruptcy of a company.

c. In the event of Investment Manager has a status as Issuer or Public Company, the responsibility
as referred to in letter b only binds the controlling shareholders and shareholders who own 20%
(twenty percent) or more of the shares of such Investment Manager.
3. BOARD OF DIRECTORS AND COMMISSIONER
a. Investment Manager must own minimum 2 (two) members of the board of directors and 2 (two)
members of the board of commissioner.
b. Members of the board of directors and members of the board of commissioner of Investment
Manager must comply with the following provisions:
1) Integrity requirements, which consist of:
a) Individual who is able to conduct legal action;
b) Has never been declared bankrupt or become a director or commissioner who is
declared to be guilty in resulting a company to be bankrupt;
c) Has never been a manager or a supervisor of a company which based on the
decision of General Meeting of the Shareholders (RUPS) or other organs which are
equivalent to RUPS, is declared to be responsible for the bankruptcy of a company;
d) Does not serve as a manager or supervisor of a company when such company is
declared bankrupt, unless the relevant person is able to prove the fulfillment of
provision of Article 104 paragraph (4) of Law Number 40 of 2007 on Limited
Liability Company;
e) Has never committed a disgraceful act or punished due to proven to commit a
criminal act in the financial sector;
f) Has good character and moral;
g) Has high commitment to comply with the prevailing laws and regulations; and
h) Has high commitment towards the sound development of Investment Manager
operational; and
2) Competency and expertise requirement in Capital Market sector with the following
provisions:
a) For a candidate member of the board of directors:
(1) Has knowledge in Capital Market sector which is adequate and relevant with
his position as well as has minimum academic education of Diploma (D3);
(2) Has experience and expertise in Capital Market sector and/or financial
sector for minimum 3 (three) years in managerial position in an institution
which operated in Capital Market and/or financial sector which is related to
the management of customer or company fund which is invested in
Securities portfolio or collective investment portfolio.
Managerial Position as referred to in this point is:
(a) A position one level below the board of directors;
(b) Supervise one working unit in an institution in the capital market
and/or financial sector; or
(c) Supervise minimum 10 (ten) employees.
b) For a candidate member of the board of commissioners:
(1) Has expertise in Capital Market sector which is adequate and relevant with
his position; and/or

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(2) Has experience minimum 2 (two) years in a company which operates in

Capital Market and/or financial sector.
c. All members of the board of directors of Investment Manager must own individual license as
Securities Company Representative and minimum one member of the board of directors must
own individual license as Investment Manager Representative.
d. Member of the board of directors of the Investment Manager is prohibited from having
interlocking directorate in other company unless as a commissioner of Stock Exchange,
Clearing and Guarantee Agency or Deposit and Settlement Agency.
e. Member of the board of commissioner of Investment Manager is prohibited from having
interlocking directorate as a member of the board of commissioners in other Securities
Company.
f. Member of the board of directors of the Investment Manager must be domiciled in Indonesia.
g. Member of the board of directors of the Investment Manager must be responsible for the
completeness and validity of the submitted documents to Bapepam and LK.
Responsibility for the validity of such documents does not apply in the event of the board of
directors is able to prove that the board of directors has acted professionally and has taken
adequate measures to ensure that the submitted documents are correct.
h. Member of the board of directors and board of commissioner of Investment Manager must be
fully responsible for the validity of contents of financial statement of Investment Manager.
4. ORGANIZATIONAL STRUCTURE
Investment Manager must own working unit or official who implements the functions of Investment
manager as regulated in Regulation of Bapepam and LK Number V.D.11. on Guidelines for the
Implementation of Investment Manager Functions.
5. PROCEDURES FOR THE SUBMISSION OF APPLICATION FOR BUSINESS LICENSE
a. Application for business license of Investment Manager is submitted to Bapepam and Lk in 2
(two) copies by utilizing Form Number: V.A.3-1 of appendix 1 to this Regulation.
b. Application for business license as referred to in number 1 letter b if this regulation is
accompanied by the following documents:
1) The identity of the Investment Manager, which consists of name, address, phone number,
facsimile and company logo;
2) Copy of deed of establishment of Securities Company which has been validated by the
authorized institution, along with the most recent amendment to the Deed of
Establishment which has obtained approval from the authorized institution or has been
issued the notification of amendment to Deed of Establishment from the authorized
institution;
3) Compliance strategy of Investment Manager towards law and regulations in the capital
market sector in accordance with Form Number: V.A.3-2 of appendix 2 to this regulation;
4) Risk management strategy of Investment Manager in accordance with Form Number:
V.A.3-3 of appendix 3 to this regulation;
5) Copy of proof of ownership of Taxpayers Identification Number (Nomor Pokok Wajib
Pajak/NPWP) of Securities Company;
6) List of names and data of member of the board of directors, commissioners, an employee
who owns Securities Company Representative license, and the officer whose duties are
to implement and/or coordinate Investment Manager functions in accordance with
Regulation of Bapepam and LK Number V.D.11. on Guidelines for the Implementation of
Manager Investment Functions, which consist of:
a) Curriculum vitae which are signed by the relevant, namely stating brief summary of

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job which consists of the name of the position, reasons for quitting or resigning, as
well as a brief description of duties and responsibilities of the position;
b) Copy of the most recent formal education certificate and/or birth certificate;
c) Copy of individual license as Securities Company Representative and/or Mutual
Funds Sales Agents Representative (if any);
d) Copy of valid Identity Card or Passport; and
e) Most recent passport photo in 4x6 cm for 2 (two) pieces;
7) List of names and data of shareholders, consists of:
a) Individual, consists of:
(1) Curriculum vitae which are signed by the relevant person;
(2) Copy of valid Identity Card or Passport;
(3) Most recent passport photo in 4x6 cm for 2 (two) pieces; and
(4) Documents which show the financial condition, namely SPT, bank statement
or list of other assets;
b) Legal entity, consists of:
(1) Copy of deed of establishment of the legal entity which has been validated
by the authorized institution, along with the recent amendment to Deed of
Establishment which has obtained approval from the authorized institution or
has been issued the notification of an amendment to Deed of Establishment
from the authorized institution;
(2) Copy of proof of ownership of Taxpayers Identification Number (NPWP) for
Indonesian legal entity;
(3) Statement on the Party who controls the legal entity, both directly or
indirectly, which consists of name and form of controlling;
(4) Most recent financial statement of the legal entity which has been audited;
(5) List of names and data of members of the board of directors, members of the
board of commissioners, and/or management, consist of:
(a) Curriculum vitae which have been signed;
(b) Copy of valid Identity Card/Passport; and
(c) Most recent passport photo in 4x6 cm for 2 (two) pieces;
(6) List of names and data of the shareholders:
(a) Individual consists of:
i. Curriculum vitae which have been signed;
ii. Copy of valid Identity Card/Passport;
iii. Most recent passport photo in 4x6 cm for 2 (two) pieces; and
iv. Documents which show the financial condition namely SPT,
bank statement or list of other assets;
(b) Legal entity consists of:
i. Copy of the most recent Deed of Establishment; and
ii. Copy of the most recent financial statement;
(7) Affidavit and/or other proof from the authorized institution in Capital Market

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sector in the relevant country which shows that the company is in its
supervision, for a foreign legal entity which has business activity as
securities company;
(8) Affidavit and/or other proof from the authorized institution in the financial
sector in the relevant country which shows that the company is in its
supervision, for a foreign legal entity which has business activity as a
financial company;
8) In the event of Investment Manager is an Issuer or a Public Company, the obligation as
referred to in letter b point 7) shall only cover the controlling shareholders and
shareholders who own 20% (twenty percent) or more than the shares of such Investment
Manager.
9) Affidavit on Party who controls Investment Manager, both directly or indirectly, which
consists of namely name and form of control;
10) Copy of Foreign Worker Recruitment Permit (Izin Mempekerjakan Tenaga Asing/IMTA) or
Foreign Worker Work Permit (Izin Kerja Tenaga Asing/IKTA) for foreigners, from the
authorized institution in accordance with the prevailing laws and regulations;
11) Copy of Temporary Residence Permit (Kartu Izin Tinggal Sementara/KITAS) or
Permanent Residence Permit (Kartu Izin Tinggal Tetap/KITAP) for Securities Company
which has a foreigner in the board of directors;
12) Most recent financial statement which is audited by Accountant who is registered in
Bapepam and LK.
The period between the date of the most recent financial statement which is audited by
Accountant with the date of granting of a business license for Investment Manager shall
be no longer than 90 (ninety) days;
13) Copy of joint business agreement for joint Investment Manager;
14) Bank statement;
15) Proof of capital deposit;
16) Adjusted Net Capital in accordance with Regulation of the Bapepam Number V.D.5 on
Maintenance and Reporting of Adjusted Net Capital;
17) An affidavit from the party who controls the Investment Manager, both directly or
indirectly, which stated that the relevant person:
a) Has never committed a disgraceful act and/or is punished due to proven in
committing a criminal act in the financial sector;
b) Has good character and moral;
c) Has a high commitment to comply with the prevailing laws and regulations;
d) Has a high commitment towards the sound development of Investment Manager
operational;
e) Has never been declared bankrupt; or has never become a manager or supervisor
of a company which is based on the decision of General Meeting of Shareholders
(RUPS) or other organ is equivalent to RUPS, is declared responsible for company
bankruptcy, if such controller is an individual; and
f) Does not serve as a manager or supervisor of a company when such company is
declared bankrupt, unless the relevant person is able to prove the fulfillment of
provision of Article 104 paragraph (4) of Law on Limited Liability Company, if such
controller is an individual;
In accordance with Form Number: V.A.3-4 of appendix 4 to this regulation;

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18) In the event of Investment Manager has a status as an Issuer or a Public Company,
obligation as referred to in point 17) only binds the controlling shareholders and
shareholders who own 20% (twenty percent) or more of the shares of such Investment
manager;
19) Affidavit of the member of the board of directors and member of the board of
commissioner of Investment Manager which stated the fulfillment of the following
requirements:
a) Able to conduct legal act;
b) Has never been declared bankrupt or become director or commissioner who is
found guilty in causing a company to be declared bankrupt;
c) Has never become a manager or supervisor of a company which is based on the
General Meeting of Shareholders (RUPS) or decision of another organ which is
equivalent to RUPS, is declared to be responsible for company bankruptcy;
d) Does not serve as a manager or supervisor of a company when such company is
declared bankrupt, unless the relevant person is able to prove the fulfillment of
provision of Article 104 paragraph (4) of Law Number 40 of 2007 on Limited
Liability Company;
e) Has never committed a disgraceful act or punished due to proven to commit a
criminal act in the financial sector;
f) Has good character and moral;
g) Has a high commitment to comply with the prevailing laws and regulations; and
h) Has a high commitment towards the sound development of Investment Manager
Operational;
In accordance with Form Number: V.A.3-5 of appendix 5 to this regulation;
20) Affidavit of members of board of directors which stated that the Investment Manager is
fully responsible, including financially for every measures which are related to Securities
which are conducted on behalf of Investment Manager by director, Investment Manager
Representative, officer, and other Party who works for such Investment Manager, in
accordance with Form Number: V.A.3-6 of appendix 6 to this regulation;
21) Affidavit of members of board of directors which stated that starting from the issuance
date of business license for Securities Company as Investment Manager and as long as
becoming board of directors of Investment Manager, the relevant person does not have
interlocking directorate in other company, unless interlocking directorate which is possible
in this Regulation, in accordance with Form Number: V.A.3-7 of appendix 7 to this rule;
22) Affidavit of members of board of commissioners which stated that starting from the
issuance date of business license for Securities Company as Investment Manager and as
long as becoming commissioner, the relevant person does not have interlocking
directorate as members of the board of commissioners in other Securities Company, in
accordance with Form Number: V.A.3-7 of appendix 7 to this rule;
23) Affidavit of members of board of directors and members of board of commissioner which
stated that the relevant person has or does not have familial relationship due to marriage
and descent until the second degree, both horizontally or vertically, with the members of
board of directors or members of board of commissioner in the relevant Investment
Manager, in accordance with Form Number: V.A.3-8 of appendix 8 to this regulation;
24) Affidavit of members of board of directors and members of board of commissioner which
stated that the relevant person has or does not have familial relationship due to marriage
and descent until second degree, both horizontally or vertically, with members of board of
directors or members of board of commissioners in other Securities Companies or Public
Companies or Issuer which its Securities is registered in Stock Exchange, in accordance

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with Form Number: V.A.3-9 of appendix 9 to this regulation;

25) Affidavit of the employee which has an individual license as Securities Company
Representative, which stated that the relevant person does not have interlocking
directorate in other Securities Companies, in accordance with Form Number: V.A.3-10 of
appendix 10 to this regulation;
26) Domicile certificate from building management or authorized institution, copy of proof of
ownership if the business place is self-owned or lease agreement if the business place is
not his own, office room layout, and a photo of Investment Manager room which is
accompanied with the room allotment;
27) Organizational structure diagram along with the job description, which at least consists
the following information:
a) Name of the members of the board of commissioners;
b) Position name of the directors and name of the members of the board of directors;
c) Division of duties and authorities between members of the board of directors (if
any);
d) Working unit or official and the name of the employee who implements Investment
Manager functions as regulated in Regulation of Bapepam and LK Number V.D.11.
on Guidelines for the Implementation of Investment Manager Functions; and
e) Information on number and name of the employees in every working unit one level
below the board of directors;
28) Description of operational plan and Investment Manager mission minimum for the next 5
(five) years, which at least consists of the following information:
a) Investment management services which will be offered;
b) Customer and/or investor target in accordance with the products which will be
offered;
c) Percentage of income contribution from each product towards company total
revenue;
d) Products distribution method which will be offered; and
e) Products selling method to a potential customer and/or investor;
29) Financial projection of Investment Manager minimum for the next 5 (five) years, which at
least consists of:
a) Type of revenue from the products which will be offered for the next 5 (five) years;
b) Costs which are incurred from company operational activities for the next 5 (five)
years; and
c) Percentage of revenue contribution from each product towards company total
revenue for the next 5 (five) years;
30) Affidavit of the board of directors on the responsibility of the board of directors for the
completeness and validity of the submitted documents to Bapepam and LK in accordance
with Form Number: V.A.3-11 of appendix 11 to this regulation;
31) Answers on questions in accordance with Form Number: V.A.3-12 of appendix 12 of this
regulation, Form Number: V.A.3-13 of appendix 13 to this regulation, and Form Number:
V.A.3-14 of appendix 14 to this regulation;
32) List of branch offices and its changes in accordance with appendix V.D.8-1 of Regulation
of Bapepam Number V.D.8 on Securities Company Activities in Various Locations; and
33) Procedures and Investment Manager operating standard which at least contains the

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provision in accordance with Regulation of Bapepam and LK which is related to the

implementation of business activity as Investment Manager;
c. In the event of Securities Company which has obtained business license for Securities
Company as Securities Broker and/or Securities Underwriters and is intended to submit
application to obtain business license as Investment Manager, therefore the period between the
most recent financial statement which is audited by Accountant as referred to in letter b point
12) and the date of granting business license for Investment manager must not more than 180
(one hundred eighty) days.
d. For the purpose of processing application of business license as Investment Manager,
Bapepam and LK will conduct examination on documents completeness, may conduct interview,
request for presentation, conduct examination in applicant office, conduct fit and proper test for
shareholders or candidate shareholders, controller, members of board of directors and members
of board of commissioner of Investment Manager, and/or request for additional document.
e. In the event of shareholders of Investment Manager is in the form of legal entity, a fit and proper
test of such legal entity is conducted by assessing the relevant legal entity and its management,
as well as the parties which are based on study of Bapepam and LK is the owner and controller
both directly or indirectly from such legal entity.
f. In the event of the submitted application does not fulfill the requirements, Bapepam and LK shall
provide notification to the applicant which stated that:
1) Its application is not complete by utilizing Form Number: V.A.3-15 of appendix 15 to this
regulation; or
2) Its application is rejected by utilizing Form Number: V.A.3-16 of appendix 16 to this
regulation.
g. Applicant who does not complete the required documents within 45 (forty-five) days after the
date of notification as referred to in letter f point 1) of this regulation, is deemed to have
withdraw the application of business license for Securities Company as Investment Manager
which has been submitted.
h. In the event of the submitted application has fulfilled the requirements, Bapepam and LK shall
provide a business license for Securities Company as Investment Manager which is delivered to
the applicant by utilizing Form Number: V.A.3-17 of appendix 17 to this regulation.
6. FURTHER OBLIGATION
a. Investment Manager must comply all prevailing laws and regulations in the Capital Market
sector.
b. Investment Manager must renew the compliance strategy and risk management in the event if:
1) change and/or addition in Investment Manager activity are occured; and/or
2) new regulations and/or amendment to Regulation of Bapepam and LK or other relevant
regulation are issued.
c. Investment Manager must report to Bapepam and LK for every change which is related to:
1) Company identity, which consists of namely name, address, or logo;
2) Company articles of association;
3) Company Taxpayers Identification Number (NPWP);
4) Copy of Foreign Worker Recruitment Permit (IMTA) or Foreign Worker Work Permit
(IKTA) for foreigners;
5) Temporary Residence Permit (KITAS) or Permanent Residence Permit (KITAP) for
Securities Company which has a foreigner in the board of directors;
6) joint business agreement for joint Investment Manager;

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7) information on business place and internal control system of Investment Manager;

8) organizational structure diagram along with job description as referred to in number 5
letter b point 27);
9) recruitment and or resignation of Securities Company Representative;
10) procedures and operating standard of the company; and
11) compliance strategy and risk management,
within 7 (seven) days after the changes become effective.
d. In the event of members of the board of directors and/or members of the board of commissioner
resign, pass away, or is terminated, then Investment Manager must notify to Bapepam and LK
within 2 (two) days at the latest since such event is known by the Investment Manager.
e. Bapepam and LK may postpone the resignation or termination of members of the board of
directors and/or members of the board of commissioners as referred to in number 6 letter d.
f. Plan on changing of Investment Manager shareholders must first be submitted to Bapepam and
LK through Investment Manager, to obtain approval for the purpose of fulfillment of provision
number 2 letter a, letter b, and letter c of this regulation.
g. Provision as referred to in letter f does not apply for Investment Manager which is an Issuer or a
Public Company, where changes in such shareholders do not cause transfer of control both
directly or indirectly.
If changes of Investment Manager Shareholder which is an Issuer or a Public Company may
result in changes of control both directly or indirectly, therefore such candidate controller must
submit approval application to Bapepam, and LK through Investment Manager in accordance
with provision letter f.
h. Submission of the plan on changing of shareholders as referred to in letter f and submission of
approval application by the candidate controller as referred to in letter g must be accompanied
by documents as referred to in number 5 letter b point 7), point 8) and point 15).
i. For the purpose of providing approval or rejection for the plan on changing of shareholders or
submission of approval application by the candidate controller as referred to in letter g,
Bapepam and LK shall conduct an assessment as referred to in number 5 letter d and letter e.
j. Plan on changing of structure and/or changes of members of the board of directors and/or
members of the board of commissioners must be submitted to Bapepam and LK through
Investment Manager to obtain approval before the candidate is appointed by General Meeting of
Shareholders.
k. Submission of the plan on changing of structure and/or member replacement:
1) Board of directors must be accompanied with documents as referred to in number 5 letter
b point 6), point 10), point 11), point 19), point 20), point 21), point 23), point 24), and
point 30); and/or
2) Board of commissioner must be accompanied with documents as referred to in number 5
letter b point 6), point 10), point 19), point 22), point 23), and point 24).
l. For the purpose of granting approval or rejection for the plan on changing of structure and/or
replacement of members of the board of directors and/or members of the board of
commissioner as referred to in letter I, Bapepam and LK shall conduct an assessment as
referred to in number 5 letter d.
m. Investment Manager must submit to Bapepam and LK every result of General Meeting of
Shareholders which is related to changes of shareholders which must obtain approval from
Bapepam and LK and changes of members of board of directors and/or members of board of
commissioner, within 7 (seven) business days at the latest after the implementation date of
General Meeting of Shareholders.

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7. REVOCATION OF BUSINESS LICENSE

a. Business license of Securities Company as Investment Manager may be revoked by Bapepam
and LK based on the following matters as follows:
1) The business license is returned by the relevant Investment Manager to Bapepam and
LK;
2) Violation of laws and regulations in the Capital Market sector; or
3) Investment Manager is dissolved.
b. Return of Securities Company business license as Investment Manager as referred to in letter a
point 1) must fulfill the following requirements as follows:
1) Submit application letter to return the Securities Company business license as Investment
Manager to Bapepam and LK;
2) Has obtained approval from General Meeting of Shareholders for the plan on requesting
the return of such business license;
3) Has announced the plan for the return of business license minimum in one newspaper
with national circulation which consists of namely notification of settlement of rights and
obligation; and
4) Has settled rights and obligation of Investment Manager to customers.
c. Application letter as referred to in letter b point 1) is accompanied by the following documents:
1) Affidavit on reasons for returning such business license;
2) The decision of General Meeting of Shareholders on approval for the plan on application
to return such business license;
3) Decision Letter of Head of Bapepam and LK on Granting of Securities Company
Business License as Investment Manager which is owned;
4) Proof of notification on the plan in returning business license minimum in one newspaper
with national circulation which consists of namely notification of settlement of rights and
obligation; and
5) Report on settlement of rights and obligation of Investment Manager to customers along
with its supporting documents.
d. Investment Manager who has more than one business licenses and is intended to return one of
the business licenses which are owned, may submit an application to return one of the business
licenses.
e. In the event of Investment Manager is an Issuer or a Public Company, then the submission
process for application to return business license must first fulfill laws and regulations which
regulate on Issuer or Public Company.
f. Violation of laws and regulations in the Capital Market sector as referred to in letter a point 2) is:
1) Administrative violation including but not limited to the fulfillment of the following
conditions:
a) Investment Manager office is not found;
b) Investment Manager office is found, however, within the period of 2 (two)
consecutive years Investment Manager does not conduct business activity as
Investment Manager;
c) Investment Manager does not have any employee; and/or
d) Investment Manager does not fulfill the deficiency which is required in accordance
with the prevailing regulation after the window and provided period which has

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passed;
2) The company is proven to commit a criminal act as referred to in Law Number 8 of 1995
on Capital Market.
8. In the event of business license of Securities Company is revoked, for reasons as referred to in
number 7 letter a point 1) and point 2) and resulting in such Securities Company no longer has
Securities Company license, both as Securities Underwriters, Securities Brokers and Investment
Manager, therefore such Securities Company is prohibited from utilizing name and logo of the
company for any urposes and activities whatsoever, other than for activities which are related to
dissolving of such company,
9. Notwithstanding any criminal sanctions in the Capital Market sector, Bapepam and LK may impose
sanctions on any Party who violate the provision in this regulation including the Party which causes
such violation.

Established in Jakarta,
On 31 December 2009
HEAD OF CAPITAL MARKET AND FINANCIAL INSTITUTION SUPERVISORY AGENCY,
Signed.
A. FUAD RAHMANY
NIP 060063058

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