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FINANCIAL SERVICES AUTHORITY

REPUBLIC OF INDONESIA

COPY

FINANCIAL SERVICES AUTHORITY REGULATIONS

NUMBER 27 /POJK.03/2016
ABOUT
FITNESS AND PROPERTY ASSESSMENT
FOR THE MAIN PARTIES OF FINANCIAL SERVICE INSTITUTIONS

BY THE GRACE OF GOD ALMIGHTY

BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Weigh : a. that in order to create a Service Institution

Healthy finances, protecting stakeholders
interests and increase compliance
to regulation legislation,
implementation of governance is required in the Institution
Financial Services;
b. that in order to realize this governance,
Financial Services Institutions must be owned and
managed by parties who consistently meet the
requirements of capability and propriety;
c. that to support the realization of licensing
Prime requires better licensing services
fast, precise, easy and transparent;
d. that with the transfer of authority
regulation and supervision of service institutions
Financial Services Authority requires alignment of the
provisions that
regulates the assessment of abilities and
propriety;
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e. that based on the considerations as follows

referred to in letters a, b, c and
letter d, it is necessary to establish Authority Regulations
Financial Services on Capacity Assessment
and Propriety for Financial Services Institutions;

Remember : 1. Law Number 7 of 1992 concerning

Banking (State Gazette of the Republic of Indonesia)
1992 Number 31, Additional Sheet
Republic of Indonesia Number 3472) as amended by Law

Law Number 10 of 1998 (State Gazette)

Republic of Indonesia 1998 Number 182,
Supplement to the State Gazette of the Republic of Indonesia
Number 3790);
2. Law Number 11 of 1992 concerning
Pension Fund (State Gazette of the Republic of
Indonesia 1992 Number 37, Supplement
State Gazette of the Republic of Indonesia Number
3477);
3. Law Number 8 of 1995 concerning
Capital Market (State Gazette of the Republic of
Indonesia 1995 Number 64, Supplement
State Gazette of the Republic of Indonesia Number
3608);
4. Law Number 21 of 2008 concerning
Sharia Banking (State Gazette of the Republic of
Indonesia 2008 Number 94, Supplement
State Gazette of the Republic of Indonesia Number
4867);
5. Law Number 21 of 2011 concerning
Financial Services Authority (State Gazette)
Republic of Indonesia 2011 Number 111,
Supplement to the State Gazette of the Republic of Indonesia
Number 5253);
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6. Law Number 40 of 2014 concerning

Insurance (State Gazette of the Republic of Indonesia)
Indonesia 2014 Number 337; Supplement

State Gazette of the Republic of Indonesia Number

5618);
7. Law Number 1 of 2016 concerning
Guarantee (State Gazette of the Republic of Indonesia)
2016 Number 9; Additional Sheet

Republic of Indonesia Number 5835);

DECIDE:

To stipulate: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING

ASSESSMENT OF FITNESS AND SUITABILITY FOR THE PARTIES
MAIN FINANCIAL SERVICES INSTITUTION.

PIG
GENERAL REQUIREMENTS

article 1
In this Financial Services Authority Regulation,
meant by:
1. Financial Services Institutions, hereinafter abbreviated as
LJK is a Financial Services Institution as referred to in Law Number
21 of 2011 concerning the Financial Services Authority which
includes:
a. Bank is a bank as referred to in
Law Number 7 of 1992 concerning
Banking as amended by
Law Number 10 of 1998 and
Law Number 21 of 2008 concerning
Sharia Banking, including branch offices and representative
offices of banks domiciled in Indonesia
abroad;
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b. Securities Company is a party that carries out

business activities as a Securities Underwriter,
Securities Broker, and/or Manager
Investments as referred to in the Law
Law Number 8 of 1995 concerning Markets
Capital;
c. Investment Advisor is a company that
advise others regarding
sale or purchase of securities with
receive compensation for services as referred to
in Government Regulation Number 45 of 2009

1995 concerning the Implementation of Activities in the Field

Capital market;
d. Insurance Company is a company
insurance, insurance company sharia,
reinsurance company, reinsurance company
sharia, broker company
insurance, reinsurance brokerage firms, and
company assessor loss insurance

as referred to in the Law

Number 40 of 2014 concerning Insurance;
e. Pension Fund is a legal entity that
manage and run programs that
promise retirement benefits, as
referred to in Law Number 11
1992 concerning Pension Funds, including
who carries out all business activities
based on sharia principles;
f. A financing company is a business entity
which carries out financing activities for
procurement of goods and/or services, including those
do the whole thing business activities
based on sharia principles as referred to in statutory
regulations
regarding financing companies and
Islamic financing companies;
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g. Guarantee Institution is a company

guarantee, sharia guarantee company, re-guarantee
company, and company
sharia re-guarantee that runs
guarantee activities as referred to
in Law Number 1 of 2016
regarding Guarantee;
h. Venture Capital Companies which then
abbreviated as PMV is a business entity that
carrying out Venture Capital Business activities including
carrying out all activities
his business is based on principle sharia
as referred to in the regulations
legislation regarding companies
venture capital and venture capital firms
sharia;
i. Pawnshop Companies are private pawnshop companies and
government pawnshop companies, including those that
carry out activities
his business is based on principle sharia
as referred to in the regulations
legislation about business

pawnshop.
2. The Main Party is the party that owns, manages,
supervise, and/or have significant influence on LJK.

3. The next Controlling Shareholder

abbreviated as PSP is a legal entity, person
individuals, and/or business groups that
own shares or the equivalent of shares in LJK
and have the ability to do it
control over LJK.
4. General Meeting of Shareholders, hereinafter abbreviated as
GMS, is a general meeting of shareholders.
as referred to in Law Number
40 of 2007 concerning Limited Liability Companies for LJK
in the form of a limited liability company or legal entity
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which is equivalent to a GMS for LJK in the form of

legal entities of cooperatives, joint ventures, pension funds,
public companies, regional companies, companies
regional public, or regional limited liability company,
or limited partnership business entity.
5. The Board of Directors is the board of directors as referred to in
Law Number 40 of 2007 concerning
Limited Liability Company for LJK in the form of a legal entity
limited liability company law or equivalent
Board of Directors for LJK in the form of legal entities,
cooperatives, joint ventures, pension funds, companies
general, regional company, public company
region, regional limited company, business entity
limited partnership, or branch office/office
representatives of banks domiciled abroad
country.
6. The Board of Commissioners is the board of commissioners

as referred to in Law Number

40 of 2007 concerning Limited Liability Companies for LJK
in the form of a limited liability company or legal entity
which is equivalent to the Board of Commissioners for LJK
in the form of a cooperative legal entity, joint venture,
pension funds, public companies, regional companies,
regional public company, limited liability company
regions, limited partnership business entities, or branch offices
of banks domiciled outside
country.
7. The Sharia Supervisory Board is the supervisor
recommended by the National Sharia Council,
The Indonesian Ulema Council which is placed in LJK or
sharia unit tasked with supervising business activities
companies to comply with sharia principles.
8. The Controller of an Insurance Company is a party who directly or
indirectly has
the ability to determine the Board of Directors and the Board
Commissioners, and/or influence the actions of the Board of Directors,
Board of Commissioners at Insurance Companies.
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9. Control is an action that aims to

to influence the management and/or policies of the company,
including LJK, in any way,
either directly or indirectly.
10. Internal Auditor is an official in the Company
Insurance is responsible for
evaluate and increase effectiveness
risk management, control, and governance processes
manage a company that works independently and
in accordance with applicable practice standards.
11. The Company Actuary is an official at the company.
insurance, sharia insurance company, company
reinsurance, and sharia reinsurance companies that
appointed and responsible for managing
financial impact of the risks faced
companies that work independently and
in accordance with applicable practice standards.
12. The Financial Services Authority, hereinafter abbreviated as
OJK, is the Financial Services Authority as
referred to in Law Number 21 of 2002
2011 concerning the Financial Services Authority.

Article 2

(1) The prospective main party must obtain approval from

OJK before carrying out its actions, duties and functions as the
Main Party.
(2) The Main Party as referred to in paragraph (1)
includes:
a. for Banks:
1) PSP;
2) members of the Board of Directors; and

3) members of the Board of Commissioners.

b. for Securities Companies:

1) PSP;
2) members of the Board of Directors; and

3) members of the Board of Commissioners.

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c. for Investment Advisors:

1) PSP;
2) members of the Board of Directors; and

3) members of the Board of Commissioners.

d. for Insurance Companies:

1) Insurance Company Controller;
2) members of the Board of Directors;

3) members of the Board of Commissioners;

4) members of the Sharia Supervisory Board;

5) Internal Auditor; and
6) Company Actuary.
e. for Employer Pension Funds:
1) members of the Board of Directors;

2) members of the Board of Commissioners; and

3) members of the Sharia Supervisory Board.

f. for Financial Institution Pension Funds:
1) acting administrator; and
2) members of the Sharia Supervisory Board.
g. for Financing Companies, Guarantee Institutions,
PMV, and Pawnshop Companies:
1) PSP;
2) members of the Board of Directors;

3) members of the Board of Commissioners; and

4) members of the Sharia Supervisory Board.

(3) Prospective PSP or prospective Company Controller
Insurance which is a shareholder
have not received approval from the OJK, it is prohibited
perform actions as a PSP or Controller
Insurance Companies, even though they already have
LJK shares.

(4) Candidates for members of the Board of Directors, candidates for members of the Board of Commissioners

and/or prospective members of the Sharia Supervisory Board

who have not obtained OJK approval are prohibited from carrying
out actions, duties and functions as members
Directors, members of the Board of Commissioners, or members
The Sharia Supervisory Board of LJK, even though it has
received approval and was appointed by the GMS.
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Article 3

In order to provide approval as referred to in Article 2, OJK carries out

an assessment
ability and suitability to the prospective Main Party.

CHAPTER II

ASSESSMENT FACTORS FOR CAPABILITY AND PROPERTY

Article 4

The fit and proper assessment is carried out to

assesses that the prospective Main Party as referred to
in Article 2 meets the requirements:
a. integrity and financial feasibility for prospective PSP or
prospective Controller of Insurance Company who
is a shareholder;
b. integrity and financial reputation for prospective Controllers
Insurance companies that are not shareholders;

c. integrity, financial reputation and competence for

other than PSP candidates or Company Controller candidates
Insurance.

Article 5

Integrity requirements as referred to in Article

4 letters a, letter b, and letter c, including:
a. competent to carry out legal actions;
b. have good morals and character, at least
demonstrated by the attitude of complying with the provisions
applicable, including never having been convicted of
proven to have committed a crime within a certain period of time
certain before being nominated;
c. have a commitment to comply with regulations
legislation and support OJK policies;
d. have a commitment to the development of LJK
healthy; and
e. not included as a prohibited party
become the Main Party.
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Article 6

Financial reputation requirements as referred to

in Article 4 letters b and c, at least
proven by:
a. do not have any credit and/or bad financing; and
b. never been declared bankrupt and/or never
become a shareholder, Company Controller
Insurance that is not a holder
shares, members of the Board of Directors, or members of the Board
The commissioner was found guilty of causing
a company is declared bankrupt within 5 (five)
last year before being nominated.

Article 7

Financial eligibility requirements as referred to

in Article 4 letter a, at least proven by:
a. have a financial reputation as referred to
in Article 6;
b. have the financial capacity to
support the development of LJK business; and
c. have a commitment to make efforts
which is needed if the LJK faces difficulties
finance.

Article 8

The competency requirements as referred to in

Article 4 letter c, at least includes knowledge
and/or experience that supports the management of LJK.

CHAPTER III

PROCEDURES FOR ASSESSING COMPETENCE AND APPROPRIATENESS

Part One
General
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Article 9

Main Party Candidates who are currently undergoing:

a. legal process;
b. the fit and proper assessment process at the OJK;
and/or
c. re-evaluation process because there are indications
integrity issues, financial viability,
financial reputation, and/or competence in a
LJK,
cannot be submitted to participate in the fit and proper assessment
to become the Main Party.

Article 10

(1) Application to obtain approval becomes

The Main Party is submitted by:
a. prospective owners, founders or members of the Board of Directors of LJK

in the case of an application for a permit to establish a LJK; or

b. members of the LJK Board of Directors, in the event that the LJK has

obtain a business license;

equipped with administrative requirement documents.
(2) LJK must submit a list of fulfillment
administrative requirements to the OJK
signed by:
a. prospective owners, founders or officials of LJK who
authorized in matters of application for establishment permit
LJK; or
b. authorized LJK officials, in the event that the LJK has
obtain a business license.
(3) Submission of application and/or documents
administrative requirements can be done through
electronic means in terms of the provisions governing
regarding this matter has been implemented.
(4) OJK may return the application as referred to in paragraph (1) if
the required documents
administrative incomplete.
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(5) LJK may nominate candidates for Main Parties in

a certain amount for each job position being applied for.

Article 11
(1) In the event that all or the majority of LJK shares are owned
by the central government or the agency given
duty by law to save
LJK, application to obtain approval
become a member of the Board of Directors or a member of the Board

The LJK Commissioner in question can be proposed by the agency

representing the central government or institutions
the.

(2) In the event that the prospective PSP will make a purchase
LJK shares in the context of temporary capital participation
by the institution assigned the task by Law
In order to save LJK, an application to obtain approval to
become a PSP can be submitted by the institution.

Article 12
In the case of members of the LJK Board of Directors as referred to
in Article 10 paragraph (1) cannot carry out its functions
or have a conflict of interest, request
submitted by:
a. other members of the Board of Directors who do not have
conflict of interest;
b. members of the Board of Commissioners if all members
The Board of Directors is unable to carry out its functions or
have a conflict of interest; or
c. other parties appointed by the GMS if all
members of the Board of Directors or members of the Board of Commissioners do not

can carry out its function or have

conflict of interest.
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Part Two
Procedures for the Assessment of Capability and Suitability for Candidates
PSP and Prospective Controllers of Insurance Companies

Article 13

(1) Assessment of capability and suitability for PSP candidates

and prospective Controller of Insurance Company
conducted through administrative assessment.
(2) In the context of administrative assessment as referred to in
referred to in paragraph (1), PSP candidates, and candidate
The Controller of the Insurance Company must
make a presentation or exposition at least
about:
a. plans of prospective PSP and prospective Controller
Company Insurance to
development of LJK to be owned and/or
which it will control; And
b. strategies of prospective PSPs and prospective Insurance
Company Controllers in terms of LJKs
will be owned and/or Which will

controlled experiencing financial difficulties.

Article 14
In the case of a prospective PSP, or prospective Company Controller
Insurance is the central government or government presentation or
area, exposure as
as intended in Article 13 is carried out if it is deemed

need.

Article 15

(1) In the case of prospective PSP and prospective Controller

Insurance companies in the form of legal entities,
assessment of the ability and propriety of the body
the law is carried out by assessing the body
the relevant law, members of the Board of Directors, and
members of the Board of Commissioners of a legal entity
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concerned, and the parties based on

The Financial Services Authority's assessment is the ultimate
shareholders.

(2) In the case of ultimate shareholders being

governments of other countries, and the laws of the countries
concerned does not allow ultimate
These shareholders provide data and documents,
OJK determines other ultimate shareholders who
directly controlled by the government of another country based
on supporting documents
valid as a substitute for ultimate shareholders
the government of another country.
(3) The parties referred to in paragraph (1) and paragraph
(2) must submit the required documents
administrative.

(4) Apart from the parties referred to in paragraph (1) and paragraph
(2), the OJK may appoint other parties who, based on the OJK's
assessment, carry out Control,
to submit the required documents
administrative.

(5) Results of the assessment of capability and suitability for

parties as referred to in paragraph (1), paragraph (2)
and paragraph (4) constitutes a single assessment result
competence and propriety towards legal entities
as referred to in paragraph (1).

Part Three
Procedures for the Assessment of Fit and Proper for Parties
Main Besides PSP Candidates and Company Controller Candidates
Insurance

Article 16
Assessment of the capability and suitability of prospective parties
Main besides PSP candidates and Company Controller candidates
Insurance is carried out by OJK through assessments
administrative.
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Article 17

(1) LJK must first carry out a self-assessment of the prospective

Main Party other than
prospective PSP and prospective Company Controller
Insurance before being submitted to the OJK, related to
with:
a. fulfillment of the requirements as referred to
in Article 4 letter c; and
b. fulfillment of requirements in accordance with
statutory provisions.
(2) The results of the self-assessment as referred to in
(1) shall be submitted to the OJK at the time of submission
application.

Article 18

(1) In the context of administrative assessment as referred to in

referred to in Article 16, OJK can carry out
clarification to the prospective Main Party.
(2) Clarification as referred to in paragraph (1)
done if:
a. there is negative information regarding the prospective Party
Main;
b. There are no Main Party candidates yet
relevant experience in LJK in Indonesia
with the aim ofposition
considering the position of the
Which And
position, size,
complexity, and/or problems of LJK
the place concerned will be nominated;
and/or
c. Main Party candidates have never been determined
approved in previous nominations.
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Part Four
Termination of Fit and Proper Assessment

Article 19

(1) OJK stops the assessment of capabilities and

the suitability of the LJK Main Party candidate if the candidate
those undergoing:
a. legal process;
b. the process of assessing suitability and suitability;
and/or
c. re-evaluation process because there are indications
integrity issues, financial viability,
financial reputation, and/or competence in
an LJK.

(2) Termination as referred to in paragraph (1)

notified in writing to the LJK.

Article 20
The Main Party Candidate whose capability assessment was stopped
and its suitability by the OJK, can be re-nominated
to OJK to become the Main Party if that
the person concerned has completed the process as per
referred to in Article 19 paragraph (1).

CHAPTER IV

RESULTS OF THE ASSESSMENT OF CAPABILITY AND PROPERTY

Article 21
(1) OJK determines the results of the capability assessment and
appropriateness as follows:
a. approved; or
b. not approved.
(2) The time period for determining the results of the fit and proper
assessment as referred to in paragraph (1)
no later than 30 (thirty) working days after all
application documents are received in full.
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(3) In terms of the process of assessing capabilities and

suitability of the candidate for the Main Party is carried out at the time
application for permits for establishment, merger and/or
LJK merger, OJK provides determination of the results
long-term fit and proper assessment
time in accordance with the regulations that govern
regarding the granting of permits for establishment, merger,
and/or merger of LJK.
(4) OJK will notify the results of the capability assessment and
the propriety as referred to in paragraph (1) in writing to the LJK.

(5) In addition to notifying the LJK as follows:

referred to in paragraph (4), OJK can notify
the results of the assessment of capability and suitability for
other interested parties in the framework
implementation of the functions, duties and authorities of the OJK or
required by law.

Article 22
(1) For prospective PSPs who are not approved by the OJK but
have owned LJK shares:

a. that concerned must divert

share ownership in LJK which
concerned and does not carry out Control;
And
b. restrictions are imposed on shareholder rights
on the relevant LJK.
(2) LJK is required to report the transfer of share ownership.
as intended in paragraph (1) letter a to
OJK with reference to statutory regulations
invitations that regulate reporting
changes to the articles of association related to changes
ownership that applies to each financial services sector.

(3) In the event that there are no statutory regulations

invitations that regulate reporting
changes to the articles of association related to changes
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ownership as referred to in paragraph (2), LJK

must report the transfer of share ownership no later than 7
(seven) working days after the GMS
ratify the transfer of share ownership.

Article 23

LJK is required to include an explanation regarding the status

shareholders as referred to in Article 22
in:
a. list of LJK shareholders; and
b. reports published by LJK.

Article 24
(1) OJK may determine parties who do not
allowed to accept share transfers
as referred to in Article 22 paragraph (1).
(2) In the case of a transfer of share ownership being made to a
party who is not permitted to receive the transfer of shares as
referred to in paragraph
(1):
a. the transfer is not considered as
transfer of ownership as referred to
in Article 22 paragraph (1);
b. LJK is prohibited from recording parties
who receives the transfer in the list of LJK shareholders;
and
c. the party receiving the transfer does not
obtain their rights as holders
share.

Article 25
(1) OJK approval of prospective Main Parties other than prospective
PSPs and prospective Company Controllers
Insurance becomes invalid if
there is no appointment for a certain period of time
against the candidate Main Party who has been approved by
OJK.
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(2) LJK is obliged to report the appointment as follows:

referred to in paragraph (1) with reference to the regulations
governing reporting
changes to the Main Party that apply to each
each financial services sector.
(3) In the event that there are no governing regulations
regarding reporting changes to the Main Party
as referred to in paragraph (2), LJK is obliged to
report the appointment of the Main Party no later than
7 (seven) working days after appointment.

Article 26

(1) For prospective members of the Board of Directors, prospective members of the Board of Commissioners

Commissioners, and/or prospective members of the Supervisory Board

Sharia which is not approved by OJK but has been

appointed as a member of the Board of Directors or a member of the Board

Commissioner, LJK is obliged to hold a GMS for

cancel the appointment of the person concerned.
(2) LJK is obliged to report the cancellation of the GMS as follows:
referred to in paragraph (1) to the OJK with reference to
to the regulations governing reporting
changes to the Main Party that apply to each
each financial services sector.
(3) In the event that there are no governing regulations
regarding reporting changes to the Main Party
as referred to in paragraph (2), LJK is obliged to
report changes to the Main Party no later than 7
(seven) working days after the cancellation of the GMS
appointment of members of the Board of Directors or prospective members
Board of Commissioners.

Article 27

(1) Main Party Candidates other than PSP candidates and candidate
Controller of Insurance Company that does not
approved as referred to in Article 21 paragraph
(1) letter b can be re-nominated to the OJK
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no later than 6 (six) months from the date of determination

Not Approved by OJK.
(2) In the case of the prospective Main Party as referred to
in paragraph (1) is not approved because the requirements
competence, then the candidate in question can be proposed
before 6 (six) months on:
a. different job fields in the same position
at the same level or lower in the same LJK;
b. positions in LJKs of a similar size
and lower complexity; or
c. positions in different LJK.
(3) Re-submission of the Main Party candidate who is not
approved due to competency requirements as
referred to in paragraph (1) must be accompanied by documents
supporters who prove that the candidate
resubmitted has made improvements to competency.

Article 28
(1) OJK revokes the approval as referred to
in Article 21 paragraph (1) letter a, if after
consent granted:
a. it is known that the information or documents that
submitted in the process of assessing the ability and
propriety is incorrect so that it becomes invalid.
meet the requirements; and/or
b. there is information obtained from the authorities
others resulting in the party having
approved to be not meeting the requirements.
(2) PSP whose approval is revoked as referred to in
referred to in paragraph (1), the provisions referred to in Article
2 paragraph (3) and Article 22 apply to the person concerned.

(3) Members of the Board of Directors, members of the Board of Commissioners and/or

members of the Sharia Supervisory Board who were canceled

his/her approval as referred to in paragraph (1),
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the provisions apply to the person concerned

as referred to in Article 2 paragraph (4) and
Article 26.

CHAPTER V

ASSESSMENT OF FITNESS AND SUITABILITY FOR THE PARTIES

MAIN FINANCIAL SERVICES INSTITUTION IN

RESCUE/HANDLING AND KEY PARTIES OF THE BANK

USED AS A MEANS OF RESOLUTION

Article 29

OJK determines the procedures for assessing capabilities and

different proprieties for the Principal Parties on:
a. LJK in rescue/handling by institutions
or an agency that has the authority to
carry out rescue/handling of LJK; and
b. Banks used as a means of resolution as regulated in Law Number 9
of 2016 concerning Prevention and Handling

Financial System Crisis.

CHAPTER VI

OTHER PROVISIONS

Article 30

(1) Banks are required to report plans for changes to their structure.
business groups related to the Bank including
legal entity that owns the Bank up to the ultimate
shareholders to the OJK no later than 1 (one) month
before the change occurs.
(2) In the case of changes to the structure of the business group
as referred to in paragraph (1) according to the OJK's assessment,
results in a change in control
Bank or if according to OJK's assessment there is
Bank controller, the Bank is required to nominate a candidate PSP
to conduct a fitness and suitability assessment
by OJK.
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(3) Assessment of capability and suitability for

Bank controllers due to changes in the structure of the business
group as
referred to in paragraph (2) is a single unit
assessment of capability and suitability for
business groups.
(4) OJK has the authority to reject changes in Bank control,
in the case of changes based on the OJK's assessment
Bank controllers can cause or
indicated that it could hinder the implementation of Bank
supervision.

CHAPTER VII

SANCTIONS

Article 31

(1) LJK and/or Main Party that violates the provisions as referred to
in Article 2 paragraph (1), Article 2 paragraph (3), Article 2
paragraph (4), Article 22, Article 23, Article 24
paragraph (2) letter b, Article 25 paragraph (2), Article 25 paragraph (3),

Article 26 paragraph (1), Article 26 paragraph (3), or Article 30 paragraph

(1), subject to administrative sanctions in the form of:

a. written warning;
b. decline in health levels;
c. cancellation of the results of the ability assessment and
propriety;
d. restrictions on business activities;
e. management replacement order;
f. inclusion of management in the list of parties
who is prohibited from becoming a Main Party;
g. cancellation of approval, registration and
ratification; and/or
h. revocation of business permit.
(2) In addition to the administrative sanctions as referred to in
paragraph (1), the OJK may impose sanctions
as regulated in laws and regulations
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invitations that apply to LJK in each

financial services sector.
(3) The mechanism for imposing sanctions as referred to
in paragraph (1) and paragraph (2) refers to the provisions
which applies to LJK in each service sector
finance.

CHAPTER VIII

TRANSITIONAL PROVISIONS

Article 32

The results of the fit and proper assessment that have been carried out
determined before the enactment of the Financial Services Authority Regulation

This finance is stated to remain valid.

Article 33

Regarding the assessment of the ability and suitability of candidates

The Main Party that is being carried out at the time of its validity
This Financial Services Authority Regulation:
a. assessment procedures and assessment results still refer to
to the provisions assessment of abilities and
the appropriateness that applies to each sector
financial services; and
b. consequences of the results of the ability assessment and
propriety refers to the provisions in
This Financial Services Authority Regulation.

Article 34

(1) At the time the Financial Services Authority Regulation comes into effect
This finance:
a. Main Parties in PMV or Company
Pawnshops that have never participated in a fit and proper
assessment can still
become the Main Party;
b. members of the Sharia Supervisory Board at the Fund
Retirement and Internal Auditors in Companies
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Insurance that has never participated

fit and proper assessment can still be done
hold office and carry out his duties and functions.
(2) The Main Party other than the PSP as referred to in
paragraph (1), must follow the assessment of capabilities and
suitability based on the Financial Services Authority Regulations
This finance before the person concerned is done
extension of office or transfer of office at
the same company.

CHAPTER IX

CLOSING

Article 35

Further provisions regarding the assessment of capabilities and

suitability is regulated in the Circular Letter of the Financial Services Authority

Finance.

Article 36

With the enactment of this Financial Services Authority Regulation,

Article 3 paragraph (2) letter a, Article 3 paragraph (2) letter b, and Article
18 paragraph (4) of Financial Services Authority Regulation Number
4/POJK.05/2013 concerning Assessment of Capability and
Suitability for Key Parties in the Company
Insurance, Pension Funds, Financing Companies and Guarantee
Companies are revoked and declared non-existent.
applies.

Article 37

Provisions of laws and regulations that regulate

regarding the assessment of capability and suitability
applicable to each financial services sector remains valid as long as it
does not conflict with the Regulations
This Financial Services Authority.
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Article 38

This Financial Services Authority Regulation shall come into

effect: a. on August 1, 2016 for LJKs other than
Pawnshop Company;
b. 2 (two) years from the date of promulgation for
Pawnshop Company.
So that everyone knows, order
enactment of this Financial Services Authority Regulation
with its placement in the State Gazette of the Republic
Indonesia.

Established in Jakarta
on July 22, 2016

CHAIRMAN OF THE BOARD OF COMMISSIONERS

FINANCIAL SERVICES AUTHORITY,

Signed

MULIAMAN D. HADAD

Enacted in Jakarta
on July 27, 2016

MINISTER OF LAW AND HUMAN RIGHTS

REPUBLIC OF INDONESIA,

Signed

YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA 2016 NUMBER 147

Copy true to original

Legal Director 1
Department of Law

Signed

Yuliana