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RI Law No. 8/1995

LAWS OF THE REPUBLIC INDONESIA
NUMBER 8 YEAR 1995
ABOUT

CAPITAL MARKET
BY THE GRACE OF GOD ALMIGHTY

PRESIDENT OF THE REPUBLIC OF INDONESIA,

Weigh

: a. that the goal of national development is the creation of a society
just and prosperous based on Pancasila and the 1945 Constitution;
b. that the Capital Market has a strategic role in the development
as a source of financing for the business world and
investment vehicle for the community;
c. that in order for the Capital Market to develop, a foundation is needed
strong law to better guarantee the legal certainty of the parties
who carry out activities in the Capital Market and protect the interests of
the investor community from harmful practices;
d. that in line with the results achieved by national development
as well as in anticipation of economic globalization, the Law
Number 15 of 1952 concerning the stipulation of the "Emergency Law concerning
Stock Exchange” (State Gazette of 1951 Number 79) as Law
(State Gazette of 1952 Number 67) is deemed not appropriate
again with the circumstances;
e. that based on the considerations above, it is deemed necessary
to enact a Law on Capital Markets;

Remember

: 1. Article 5 paragraph (1), Article 20 paragraph (1), and Article 33 of the Constitution
1945;
2. Law Number 1 of 1995 concerning Limited Liability Companies
(State Gazette of 1995 Number 13, Supplement to the State Gazette
Number 3587);

With approval
HOUSE OF REPRESENTATIVE OF INDONESIA REPUBLIC
DECIDING :
Set

: LAW CONCERNING CAPITAL MARKET.
PIG
GENERAL REQUIREMENTS

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article 1
In this Law what is meant by:
1. Affiliates are:
a. family relationship due to marriage and descent to the second degree, good
horizontally or vertically;
b. relationship between the Party and employees, directors, or commissioners of the Party;
c. relationship between 2 (two) companies where there is one or more members
the same board of directors or commissioners;
d. relationship between the company and the Parties, either directly or indirectly,
control or be controlled by the company;
e. relationship between 2 (two) controlled companies, either directly or indirectly
directly, by the same Party; or
f. relationship between the company and the major shareholders.
2. Securities Exchange Member is a Securities Broker-Dealer who has obtained a license
business from Bapepam and has the right to use the system and/or
Stock Exchange facilities in accordance with Stock Exchange regulations.
3. Securities Administration Bureau is a Party which, based on a contract with the Issuer, performs
recording of Securities ownership and distribution of rights related to Securities.
4. Stock Exchange is a Party that organizes and provides systems and or
a means to bring together offers to buy and sell Securities of other Parties with
the purpose of trading Securities between them.
5. Securities are securities, namely debt acknowledgments, commercial securities,
stocks, bonds, proof of debt, Participation Units of collective investment contracts, contracts
futures on Securities, and any derivatives of Securities.
6. Issuer is a Party conducting a Public Offering.
7. Material Information or Facts are important and relevant information or facts regarding
events, occurrences, or facts that may affect the price of Securities on the Stock Exchange
and or decisions of investors, prospective investors, or other parties with an interest in
information or facts.
8. Custodian is a Party that provides safekeeping services for Securities and other assets that
relating to Securities and other services, including receiving dividends, interest, and
other rights, complete Securities transactions, and represent account holders who
become customers.
9. Clearing Guarantee Institution is a Party that provides clearing services
and guarantee for the settlement of Exchange Transactions.
10. Depository and Settlement Institution is a Party that organizes
Central Custodian activities for Custodian Banks, Securities Companies, and other Parties.
11. Investment Manager is a Party whose business activities are managing a Securities Portfolio
for customers or manage a collective investment portfolio for a group
customers, except for insurance companies, pension funds, and banks that do
own business activities based on the applicable laws and regulations.

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12. Minister is the Minister of Finance of the Republic of Indonesia.
13. Capital Market is an activity related to Public Offering and trading
Securities, Public Companies related to the Securities they issue, as well as institutions
and professions related to Securities.
14. Investment Advisor is a Party that provides advice to other Parties regarding sales
or purchase of Securities in exchange for services.
15. Public Offering is a Securities offering activity carried out by an Issuer to sell
Effects to the public based on the procedures regulated in this Law and
implementing regulations.
16. Collective Custody is a safekeeping service for Securities that are jointly owned by more than one
The party whose interests are represented by the Custodian.
17. Underwriter is a Party that makes a contract with an Issuer to perform
Public Offering for the Issuer's interest with or without the obligation to purchase
remaining unsold Securities.
18. Broker-Dealer is a Party conducting business activities of buying and selling Securities to
own interests or other parties.
19. Registration Statement is a document that must be submitted to the Supervisory Board
Capital Market by the Issuer in the context of a Public Offering or Public Company.
20. Company is a limited liability company as referred to in Article 1 number 1
General Provisions of Law Number 1 of 1995 concerning Limited Liability Companies.
21. Securities Company is a Party conducting business activities as an Underwriter,
Broker-Dealer, and or Investment Manager.
22. Public Company is a Company whose shares have been owned by at least
300 (three hundred) shareholders and have a paid-up capital of at least
IDR 3,000,000,000.00 (three billion rupiah) or a number of shareholders and capital
paid-up stipulated by a Government Regulation.
23. Party is an individual, company, joint venture, association, or group
organized.
24. Securities Portfolio is a collection of Securities owned by a Party.
25. Disclosure Principle is a general guideline that requires Issuers, Public Companies,
and other Parties subject to this Law to inform
the public in a timely manner all Material Information regarding its business or
its effects that can affect the decision of investors on the said Securities
and or the price of the Securities.
26. Prospectus is any written information in connection with a Public Offering
with the aim of getting the other Party to buy Securities.
27. Mutual Fund is a forum used to raise funds from the public
investors to be further invested in the Securities Portfolio by the Investment Manager.
28. Exchange Transaction is a contract made by a Securities Exchange Member in accordance with the
requirements determined by the Stock Exchange regarding the sale and purchase of Securities, borrowing and borrowing of Securities,
or other contracts regarding Securities or Securities prices.

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29. Participation Unit is a unit of measure that shows the interest of each Party
in the collective investment portfolio.
30. Trustee is a Party that represents the interests of debt Securities holders.
Section 2
The Minister shall stipulate general policies in the Capital Market sector.
CHAPTER II
CAPITAL MARKET SUPERVISORY AGENCY
Article 3
(1) The daily guidance, regulation, and supervision of Capital Market activities is carried out by
Capital Market Supervisory Agency, hereinafter referred to as Bapepam.
(2) Bapepam is under and responsible to the Minister.
Article 4
The guidance, regulation, and supervision as referred to in Article 3 is carried out
by Bapepam with the aim of creating an orderly, fair, and
and efficient and protect the interests of investors and the public.
Article 5
In implementing the provisions as referred to in Article 3 and Article 4, Bapepam
authorized to:
a. give:
1) business license to the Stock Exchange, Clearing Guarantee Institution, Depository Institution
and Settlement, Mutual Funds, Securities Companies, Investment Advisors, and Bureaus
Securities Administration;
2) individual license for Underwriter Representatives, Broker-Dealer Representatives
Securities, and Investment Manager Representatives; and
3) approval for Custodian Bank;
b. require registration of Capital Market Supporting Professionals and Trustees;
c. determine the requirements and procedures for nomination and temporary dismissal
commissioners and or directors as well as appointing the temporary management of the Stock Exchange,
Clearing Guarantee Institution, as well as Depository and Settlement Institution until
with the election of new commissioners and or directors;
d. determine the requirements and procedures for the Registration Statement and declare, postpone,
or cancel the effectiveness of the Registration Statement;

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e. conduct examinations and investigations against each Party in the event of an incident
suspected of being a violation of this Law and/or regulations
its implementation;
f.

requires each Party to:
1) discontinue or improve advertising or promotions related to activities
in the Capital Market; or
2) take the necessary steps to overcome the consequences arising from
the advertisement or promotion in question;

g. carry out inspections of:
1) every Issuer or Public Company that has or is required to submit a Statement
Registration with Bapepam; or
2) Parties who are required to have business licenses, individual permits, approvals,
or professional registration under this Law;
h. appoint other parties to carry out certain inspections in the context of implementing
the authority of Bapepam as referred to in letter g;
i.

announce the results of the examination;

j.

freeze or cancel the listing of a Securities on the Stock Exchange or
stop Exchange Transactions on certain Securities for a certain period of time in order to protect
investors' interests;

k.

stop trading activities on the Stock Exchange for a certain period of time in the event that
emergency state;

l.

examine objections submitted by the Party that is subject to sanctions by the Stock Exchange,
Clearing Guarantee Institution, or Depository and Settlement Institution and
give a decision to cancel or strengthen the imposition of the said sanction;

m. stipulate fees for licensing, approval, registration, inspection, and research as well as
other costs in the context of Capital Market activities;
n. take the necessary actions to prevent harm to society as a result
violation of provisions in the Capital Market sector;
o. provide further explanations of a technical nature on this Law or regulations
its implementation;
p. determine other instruments as Securities other than those specified in Article 1 number
5; and
q. do other things that are given under this Law.

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CHAPTER III
STOCK EXCHANGE, CLEARING AND GUARANTEE HOUSE,
AND STORAGE AND SETTLEMENT INSTITUTIONS
Part One
stock Exchange
Paragraph 1
Permissions
Article 6
(1) Those who can carry out business activities as a Stock Exchange are companies that
has obtained a business license from Bapepam.
(2) The requirements and procedures for licensing the Stock Exchange as referred to in paragraph (1)
further regulated by Government Regulation.

Paragraph 2
Purpose and Ownership
Article 7
(1) The Stock Exchange is established with the aim of conducting regular trading of Securities,
reasonable and efficient.
(2) In order to achieve the objectives as referred to in paragraph (1), the Stock Exchange must
providing supporting facilities and supervising the activities of Securities Exchange Members.
(3) The annual budget plan and the use of Stock Exchange profits must be prepared in accordance with
provisions set by and reported to Bapepam.

Article 8
Those who can become shareholders of the Stock Exchange are Securities Companies that have obtained
business license to carry out activities as a Broker-Dealer.

Paragraph 3
Stock Exchange Regulations and Auditing Unit
Article 9
(1) The Stock Exchange is required to stipulate regulations regarding membership, listing, trading,
Securities equivalence, clearing and settlement of Exchange Transactions, and other related matters
with Stock Exchange activities.
(2) Procedures for the transfer of Securities in connection with Exchange Transactions shall be determined by the Stock Exchange.
(3) The Stock Exchange may determine Securities listing fees, membership fees, and transaction fees
regarding the services provided.

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(4) Fees and fees as referred to in paragraph (3) are adjusted according to need
implementation of the functions of the Stock Exchange.

Article 10
Stock Exchanges are prohibited from making provisions that prevent their members from becoming Exchange Members
Other effects or hinder the existence of fair competition.
Article 11
Regulations that must be made by the Stock Exchange, including any amendments thereto, come into force after
received Bapepam approval.
Article 12
(1) The Stock Exchange is required to have an audit unit in charge of carrying out audits
periodical or occasional inspection of its members as well as on their activities
Stock Exchange.
(2) The head of the audit unit must report directly to the board of directors, the board of directors
commissioners of the Stock Exchange, and Bapepam about the material problems he encountered
and which may affect a Securities Company Member of the Stock Exchange or the Exchange
the effect in question.
(3) The Stock Exchange is required to provide all audit unit reports at any time if:
required by Bapepam.

The second part
Clearing Guarantee Institution and Depository and Settlement Institution
Paragraph 1
Permissions
Article 13
(1) Those who can carry out business activities as a Clearing Guarantee Institution
or Depository and Settlement Institution is a Company that has obtained
business license from Bapepam.
(2) Requirements and procedures for licensing of Clearing Guarantee Institutions and Institutions
Storage and Settlement as referred to in paragraph (1) shall be further regulated
further with Government Regulation.

Paragraph 2
Purpose and Ownership
Article 14
(1) The Clearing Guarantee Institution is established with the aim of providing clearing services and
guarantee of regular, fair, and efficient settlement of Exchange Transactions.

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(2) The Depository and Settlement Institution is established with the aim of providing services
Central custody and orderly, fair and efficient transaction settlement.
(3) The Clearing Guarantee Institution and the Depository and Settlement Institution may
provide other services based on the provisions stipulated by Bapepam.
(4) Annual budget plan and use of Clearing Guarantee Institution's profits
and the Depository and Settlement Institution must be prepared in accordance with the provisions
determined by and reported to Bapepam.

Article 15
(1) Those who may become shareholders of the Clearing Guarantee Institution and the Clearing Guarantee Institution
Depository and Settlement are Stock Exchanges, Securities Companies, Administration Bureaus
Securities, Custodian Bank, or other Party with the approval of Bapepam.
(2) The majority of the Clearing Guarantee Institution's shares must be owned by the Stock Exchange.

Paragraph 3
Clearing Guarantee Institution Regulations and
Depository and Settlement Institution
Article 16
(1) The Clearing Guarantee Institution is required to stipulate regulations regarding clearing activities
and guarantee for the settlement of Exchange Transactions, including provisions regarding fees
service usage.
(2) The Depository and Settlement Institution is obliged to stipulate regulations regarding services
Central custodian and securities transaction settlement services, including provisions regarding
service usage fees.
(3) The determination of costs as referred to in paragraph (1) and paragraph (2) shall be adjusted according to the
the need for the implementation of the functions of the Clearing Guarantee Institution or Institution
Storage and Settlement.

Article 17
Regulations that must be determined by the Clearing Guarantee Institution or the Depository Institution
and the Settlement, including any amendments thereto, shall take effect after obtaining approval from Bapepam.

CHAPTER IV
MUTUAL FUND
Part One
Legal Forms and Licensing

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Article 18
(1) Mutual Funds may take the form of:
a. Company; or
b. collective investment contract.
(2) The Mutual Funds as referred to in paragraph (1) letter a may be open-ended
or closed.
(3) Those who can run the Mutual Fund business as referred to in paragraph
(1) letter a is a company that has obtained a business license from Bapepam.
(4) The Mutual Funds as referred to in paragraph (1) letter b can only be managed by the Manager
Investment under contract.
(5) Requirements and procedures for licensing Mutual Funds as referred to in paragraph (3)
further regulated by Government Regulation.

Article 19
(1) Shareholders of an open Mutual Fund may resell their shares to the Mutual Fund
Fund.
(2) In the event that shareholders make a resale, an open Mutual Fund must
buy these shares.
(3) Exceptions to the provisions as referred to in paragraph (2) can only be made
if:
a. The Stock Exchange where most of the Mutual Fund's Securities Portfolio is traded is closed;
b. Securities trading of most of the Mutual Fund Securities Portfolio on the Stock Exchange
discontinued;
c. emergency state; or
d. there are other matters stipulated in the investment management contract after
received Bapepam approval.

Article 20
(1) Investment Manager as manager of an open Mutual Fund in the form of a collective investment contract
may sell and repurchase Participation Units continuously up to
the number of Participation Units specified in the contract.
(2) In the event that the Participation Unit holder performs resale, the Investment Manager is required to:
buy back the Participation Units.
(3) Exceptions to the provisions as referred to in paragraph (2) can only be made
when:
a. The Stock Exchange where most of the Mutual Fund's Securities Portfolio is traded is closed;
b. Securities trading of most of the Mutual Fund Securities Portfolio on the Stock Exchange
discontinued;

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c. emergency state; or
d. there are other matters stipulated in the investment management contract after
received Bapepam approval.

The second part
Management
Article 21
(1) Management of Mutual Funds, whether in the form of a company or in the form of a contract
collective investment, carried out by the Investment Manager on a contract basis.
(2) The contract for the management of the Mutual Fund in the form of a Company is made by the board of directors and the Manager
Investation.
(3) An open Mutual Fund management contract in the form of a collective investment contract is made between:
Investment Manager and Custodian Bank.
(4) The provisions as referred to in paragraphs (2) and (3) shall be further regulated by
Bapepam.

Article 22
Investment Manager of an open Mutual Fund in the form of a Company and a mandatory collective investment contract
calculate the fair market value of the Securities in the portfolio every trading day based on the provisions
set by Bapepam.

Article 23
The value of shares of an open-ended Mutual Fund in the form of a Company and the value of the Participation Unit in the investment contract
collectively determined based on net asset value.

Article 24
(1) Mutual Funds are prohibited from receiving and or providing loans directly.
(2) Mutual Funds are prohibited from buying shares or other Mutual Fund Participation Units.
(3) Restrictions on investment in Mutual Funds shall be further regulated by Bapepam.

Article 25
(1) All Investment Fund assets must be deposited in a Custodian Bank.
(2) The Custodian Bank as referred to in paragraph (1) is prohibited from being affiliated with the Manager
Investments that manage Mutual Funds.
(3) Mutual Funds are required to calculate the net asset value and announce it.

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Article 26
(1) The contract for the deposit of the assets of the Mutual Fund in the form of a Company is made by the directors of the Mutual Fund
Fund with Custodian Bank.
(2) A collective investment wealth deposit contract is made between the Investment Manager and the Bank
Custodian.
(3) The provisions as referred to in paragraphs (1) and (2) shall be further regulated by
Bapepam.

Article 27
(1) The Investment Manager must in good faith and full responsibility carry out his duties
as best as possible solely for the benefit of the Mutual Fund.
(2) In the event that the Investment Manager does not carry out its obligations as referred to in
in paragraph (1), the Investment Manager is obliged to be responsible for all losses
arising from his actions.

Article 28
(1) Shares of an open-ended Mutual Fund in the form of a Company are issued without a nominal value.
(2) At the time of establishment of the Mutual Fund in the form of a Company, at least 1% (one percent)
of the authorized capital of the Mutual Fund has been issued and paid up.
(3) Implementation of mutual fund share repurchase in the form of a company and transfer
Further, the shares may be exercised without obtaining the approval of the General Meeting
Shareholders.
(4) Funds used to buy back shares of Mutual Funds in the form of a Company
derived from the assets of the Mutual Fund.

Article 29
(1) An Mutual Fund in the form of a Company is not required to establish a reserve fund.
(2) In the event that the Mutual Fund establishes a reserve fund, the amount of the reserve fund shall be in accordance with the
provisions set by Bapepam.

CHAPTER V
SECURITIES COMPANY, REPRESENTATIVE OF SECURITIES COMPANY,
AND INVESTMENT ADVISOR
Part One
Securities Company Licensing
Article 30
(1) Those who can carry out business activities as Securities Companies are companies that
has obtained a business license from Bapepam.

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(2) Securities Companies that have obtained business licenses as referred to in paragraph (1)
can carry out activities as an Underwriter, Broker-Dealer, and
or Investment Manager and other activities in accordance with the stipulated provisions
by Bapepam.
(3) Parties conducting business activities as Underwriters, Brokers and Brokers
Securities, and/or Investment Manager only for debt securities with maturity
not more than one year, certificate of deposit, insurance policy, Securities issued or
guaranteed by the Government of Indonesia, or other Securities determined by Bapepam are not required
to obtain a business license as a Securities Company.
(4) The requirements and procedures for licensing of Securities Companies shall be further regulated by Regulations
Government.

Article 31
Securities Companies are responsible for all activities related to Securities
carried out by directors, employees, and other parties working for the company.

The second part
Securities Company Representative Licensing
Article 32
(1) Those who can carry out activities as Underwriter Representatives, Broker Representatives
Securities Trader, or Investment Manager Representative is only an individual who has
obtaining permission from Bapepam.
(2) The requirements and procedures for the licensing of Securities Company Representatives shall be further regulated by
Government regulations.

Article 33
(1) An individual who has a license to act as an Underwriter Representative
may act as Broker-Dealer Representative.
(2) An individual who has a license to act as Underwriter Representative,
Broker-Dealer Representatives, or Investment Manager Representatives are prohibited from working for more than one
from one Securities Company.

Part Three
Investment Adviser Licensing
Article 34
(1) Those who can carry out activities as Investment Advisors are Parties who have
obtain a business license from Bapepam.
(2) The requirements and procedures for licensing Investment Advisors shall be further regulated by Regulations
Government.

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Part Four
Code of Conduct
Article 35
Securities Companies or Investment Advisors are prohibited from:
a. exert influence or exert pressure that is contrary to interests
customer;
b. disclose the customer's name or activities, unless given written instructions by
customer or is required according to the applicable laws and regulations;
c. misrepresenting or not presenting material facts to
the customer regarding his business capability or financial condition;
d. recommend to clients to buy or sell Securities without notifying
there is an interest in the Securities Company and Investment Advisor in the said Securities; or
e. buy or own Securities for the account of the Securities Company itself or for the account
Affiliated parties if there is an excess of purchase requests in the Public Offering in
if the Securities Company acts as the Underwriter or sales agent,
unless the order of an unaffiliated Party has been fully fulfilled.

Article 36
Securities Companies or Investment Advisors are required to:
a. know the background, financial condition, and investment objectives of its customers; and
b. create and keep good records of orders, transactions, and conditions
his finances.

Article 37
A Securities Company that receives Securities from its client must:
a. keep the said Securities in a separate account from the Securities Company's account;
and
b. maintain separate bookkeeping for each customer and provide
a safe storage place for the customer's assets;
in accordance with the procedures established by Bapepam.

Article 38
Securities Companies that act as Broker-Dealers are prohibited from conducting transactions
on Securities listed on the Stock Exchange for affiliated parties or own interests if:
unaffiliated client of the said Securities Company has given instructions to
buy and or sell the relevant Securities and the Securities Company has not
carry out the instructions.

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Article 39
The Underwriter is required to comply with all provisions in the Securities underwriting contract
as contained in the Registration Statement.

Article 40

Securities Companies that act as Underwriters must disclose in
The prospectus of an Affiliate relationship or other material relationship between the Company
Securities with Issuers.

Article 41

In the event that the Securities Company acts as an Investment Manager as well as an Intermediary
The Securities Dealer or Affiliated Party of the Securities Company acts as an intermediary
Securities Dealer for the said Mutual Fund, Securities Company or affiliated party is prohibited
collect commissions or fees from Mutual Funds that are higher than the commissions or fees

collected by an unaffiliated Broker-Dealer.

Article 42

Securities Companies acting as Investment Managers or their affiliated parties are prohibited
receive compensation in any form, either directly or indirectly, which can
influence the Investment Manager concerned to buy or sell Securities for
Mutual Funds.

CHAPTER VI
CAPITAL MARKET SUPPORTING INSTITUTIONS

Part One
Custodian

Paragraph 1
Approval
Article 43

(1) Those who can carry out business activities as Custodians are Institutions
Depository and Settlement, Securities Companies, or Commercial Banks that have obtained
Bapepam approval.

(2) Requirements and procedures for granting approval for Commercial Banks as Custodians
further regulated by Government Regulation.

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Paragraph 2
Deposited Securities
Article 44
(1) The custodian that organizes the safekeeping activities is responsible for keeping
Securities belonging to the account holder and fulfill other obligations in accordance with the contract between
The custodian and the account holder in question.
(2) Securities deposited must be recorded and recorded separately.
(3) Securities that are deposited or recorded in a Custodian Securities account are not part of the
of the Custodian property.

Article 45
The Custodian can only issue Securities or funds that are recorded in the Securities account of
written order from the account holder or the Party authorized to act on
his name.

Article 46
The custodian is obliged to provide compensation to the account holder for any losses incurred
arise as a result of the error.

Article 47
(1) Custodians or their affiliated parties are prohibited from providing information regarding accounts
Client's securities to any Party, except to:
a. The party appointed in writing by the account holder or the holder's heirs
account;
b. Police, Prosecutors, or Judges for the purposes of criminal case trials;
c. Courts for the purposes of civil case trials at the request of the Parties
litigants;
d. Tax Officer for tax purposes;
e. Bapepam, Stock Exchange, Clearing Guarantee Institution, Issuer, Administration Bureau
Securities, or other Custodians in order to carry out their respective functions; or
f. Parties who provide services to Custodians, including consultants, Legal Consultants,
and Accountants.
(2) Each Party as referred to in paragraph (1) letter a to letter f which
obtain information regarding the client's Securities account from the Custodian or its affiliates
prohibited from providing the said information to any Party, unless necessary
in carrying out their respective functions.

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(3) Requests to obtain information regarding the client's Securities account as referred to in
referred to in paragraph (1) letter b, letter c, and letter d shall be submitted by the Chief of Police
the Republic of Indonesia, the Attorney General, the Chief Justice of the Supreme Court or an appointed official, and
Director General of Taxes to Bapepam for approval by stating:
the name and position of the police, prosecutor, judge or tax official, name or number of the holder
account, the reasons for the information required, and the reasons for the request.

The second part
securities administration Bureau
Article 48
(1) Those who can carry out business activities as a Securities Administration Bureau are
A company that has obtained a business license from Bapepam.
(2) The requirements and procedures for licensing the Securities Administration Bureau as referred to
in paragraph (1) shall be further regulated by a Government Regulation.

Article 49
(1) Registration of Securities ownership in the Register of Issuer Securities holders and distribution
rights related to Securities may be exercised by the Securities Administration Bureau based on
the contract made by the Issuer with the said Securities Administration Bureau.
(2) The contract as referred to in paragraph (1) must clearly contain the rights and
the obligations of the Securities Administration Bureau and the Issuer, including obligations to Securities holders.

Part Three
trustee
Article 50
(1) Business activities as a Trustee may be carried out by:
a. Commercial banks; and
b. Other parties as determined by Government Regulation.
(2) In order to be able to carry out business activities as a Trustee, Commercial Bank or
The other party as referred to in paragraph (1) must first be registered with Bapepam.
(3) The requirements and procedures for the registration of the Trustee shall be further regulated by Regulations
Government.

Article 51
(1) The Trustee is prohibited from having an Affiliate relationship with the Issuer, except
Such affiliation occurs because of the ownership or equity participation of the Government.
(2) The Trustee represents the interests of debt Securities holders, both internally and externally
out of court.

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(3) The Trustee is prohibited from having a credit relationship with the Issuer in the appropriate amount
with the provisions of Bapepam which may result in a conflict of interest between
Trustee as creditor and representative of debt securities holders.
(4) The use of the services of the Trustee is determined in Bapepam regulations.

Article 52
Issuers and Trustees are required to make a trustee contract in accordance with the provisions stipulated in
set by Bapepam.

Article 53
The Trustee is obliged to provide compensation to the holder of debt securities for losses
due to his negligence in carrying out his duties as regulated in this Law
and or implementing regulations as well as trusteeship contracts.

Article 54
The Trustee is prohibited from concurrently acting as guarantor in the issuance of the same debt Securities.

CHAPTER VII
EXCHANGE TRANSACTION SETTLEMENT
AND COLLECTIVE CARE
Part One
Exchange Transaction Settlement
Article 55
(1) Settlement of Exchange Transactions may be carried out by completing bookkeeping,
physical settlement, or other methods stipulated by a Government Regulation.
(2) The Clearing Guarantee Institution is required to guarantee the settlement of Exchange Transactions.
(3) Procedures and guarantees for the settlement of Exchange Transactions as referred to in paragraph
(1) and paragraph (2) are based on a contract between the Stock Exchange, Clearing Guarantee Institution,
and the Depository and Settlement Institution.
(4) In order to guarantee the settlement of the Exchange Transaction as referred to in paragraph (2), the
Clearing and Guarantee can determine the guarantee fund that must be fulfilled by the user
Clearing Guarantee Institution services.
(5) The contract as referred to in paragraph (3) and the determination of the guarantee fund as referred to in paragraph (3)
referred to in paragraph (4) shall come into force after obtaining approval from Bapepam.

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The second part
Collective Custody
Article 56
(1) Securities in Collective Custody at the Depository and Settlement Institution are recorded in the
List of Issuer Securities holders on behalf of the Depository and Settlement Institution
for the benefit of the account holder at the Depository and Settlement Institution
concerned.
(2) Securities in Collective Custody at Custodian Banks or Securities Companies listed
in the Securities account at the Depository and Settlement Institution is recorded in the name of
The said Custodian Bank or Securities Company for the account holder's interest
at the Custodian Bank or Securities Company.
(3) If the Securities in Collective Custody at the Custodian Bank are part of a Portfolio
Securities of a collective investment contract and not included in Collective Custody on
Depository and Settlement Institution, then the Securities are recorded in the register book
Issuer Securities holder on behalf of Custodian Bank for the interest of Participation Unit owner
of the collective investment contract.
(4) Issuers are required to issue certificates or confirmations to the Depository Institution and
Settlement as referred to in paragraph (1) or the Custodian Bank as referred to in paragraph (1)
referred to in paragraph (3) as proof of recording in the register of holders
Issuer Effect
.
(5) Depository and Settlement Institutions, Custodian Banks, or Securities Companies are required to
issue a confirmation to the account holder as proof of recording in the
Securities account as referred to in paragraph (1) and paragraph (2).

Article 57
In Collective Custody, Securities of the same type and classification issued by the Issuer
are considered commensurate and interchangeable with one another.

Article 58
(1) The Custodian is required to record the transfer of ownership of Securities in Collective Custody by:
increase and decrease Securities in each Securities account.
(2) Issuers are required to transfer Securities in Collective Custody registered in the name of the Institution
Depository and Settlement or Custodian Bank in the Securities holder register
The Issuer becomes on behalf of the Party appointed by the Depository and Settlement Institution
or Custodian Bank.
(3) The Issuer is required to refuse the listing of Securities into Collective Custody if the Securities are
lost or destroyed, unless the Party requesting the said transfer provides evidence and
or sufficient guarantee for the Issuer.
(4) Issuers are required to refuse the listing of Securities in Collective Custody if the Securities are
pledged, placed in bail based on a court order, or confiscated
for the purpose of examining criminal cases.

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Article 59
(1) The account holder has the right at any time to withdraw funds and or Securities from his securities account
at the Depository and Settlement Institution.
(2) The Depository and Settlement Institution may refuse to withdraw funds and or transfer funds
Securities from the Securities account as referred to in paragraph (1) if the said Securities account
blocked, frozen, or pledged.
(3) Securities account blocking as referred to in paragraph (2) can only be done
by the Depository and Settlement Agency on a written order from Bapepam or
based on a written request from the Head of the Regional Police, the Head of the High Prosecutor's Office,
or the Head of the High Court for judicial purposes in civil cases or
criminal.

Article 60
(1) Account holders whose securities are registered in Collective Custody are entitled to issue
vote in the General Meeting of Securities Holders.
(2) Issuers, Depository and Settlement Institutions, Custodian Banks, or Securities Companies
must immediately deliver dividends, interest, bonus shares, or other rights in connection
with the ownership of Securities in Collective Custody to account holders.

Article 61
Securities in Collective Custody, except Securities in Mutual Fund accounts, can be loaned or
guaranteed.

Article 62
The Articles of Association of the Issuer must contain provisions regarding Collective Custody.

Article 63
The provisions regarding Collective Custody are further regulated by Bapepam.

CHAPTER VIII
CAPITAL MARKET SUPPORTING PROFESSIONS
Part One
Registration
Article 64
(1) Capital Market Supporting Professionals consist of:
a. Accountant;
b. Law consultant;

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c. Evaluator;
d. Notary Public; and
e. Other professions stipulated by Government Regulation.
(2) To be able to carry out activities in the Capital Market sector, Capital Market Supporting Professionals
as referred to in paragraph (1) must first be registered with Bapepam.
(3) Requirements and procedures for registration of Capital Market Supporting Professionals shall be determined by:
Government regulations.

Article 65
(1) Registration of Capital Market Supporting Professionals at Bapepam will be canceled if the permit
the profession concerned is revoked by the competent authority.
(2) Services from the Capital Market Supporting Professionals in the Capital Market sector that have been provided
previously not become void due to the cancellation of professional registration, unless the service
that is given is the reason for the cancellation of registration or the revocation of the permit
the profession concerned.
(3) In the event that the registration of the Capital Market Supporting Professionals is cancelled, Bapepam may
carry out inspections or assessments of other services related to the Capital Market
previously given by the said Capital Market Supporting Profession to determine
whether or not the service is valid.
(4) In the event that Bapepam decides that the services provided by the Market Supporting Professionals
The capital as referred to in paragraph (3) is not valid, Bapepam may require
companies that use the services of the Capital Market Supporting Professionals to appoint
Other Capital Market Supporting Professionals to conduct inspections and assessments of penilaian
the company in question.

The second part
Obligations
Article 66
Every Capital Market Supporting Profession is required to comply with the code of ethics and professional standards that have been established
by their respective professional associations as long as they do not conflict with this Law
and or implementing regulations.

Article 67
In carrying out business activities in the Capital Market sector, the Capital Market Supporting Professionals must
provide an independent opinion or assessment.

Article 68
Accountants registered with Bapepam who examine the financial statements of Issuers, Stock Exchanges,
Clearing Guarantee Institution, Depository and Settlement Institution, and other Parties
who carry out activities in the Capital Market sector are required to submit a notification that:
confidential to Bapepam no later than 3 (three) working days after

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the following were found:
a. violations committed against the provisions of this Law and or regulations
its implementation; or
b. things that can endanger the financial condition of the institution in question or its interests
its customers.

Part Three
Accounting Standards
Article 69
(1) Financial reports submitted to Bapepam must be prepared on the basis of:
generally accepted accounting principles.
(2) Without prejudice to the provisions as referred to in paragraph (1), Bapepam may
determine accounting provisions in the Capital Market sector.

CHAPTER IX
ISSUERS AND PUBLIC COMPANIES
Part One
Registration Statement
Article 70
(1) Only Issuers who have submitted a Public Offering can make a Public Offering
Registration Statement to Bapepam to offer or sell Securities to
community and the Registration Statement has been effective.
(2) The provisions as referred to in paragraph (1) do not apply to a Party that:
a. offering of debt securities with maturities of no more than one year;
b. issuance of certificates of deposit;
c. issuance of insurance policies;
d. Securities offering issued and guaranteed by the Government of Indonesia; or
e. other Securities offerings determined by Bapepam.

Article 71
Neither Party may sell Securities in a Public Offering, except the buyer or subscriber
state in the Securities order form that the buyer or subscriber has received or
have the opportunity to read the Prospectus regarding the relevant Securities
before or at the time the order is placed.

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Article 72
(1) The Managing Underwriter is appointed by the Issuer.
(2) In the case of more than one Managing Underwriter, the Managing Underwriter
responsible, individually or collectively, for the implementation of
Public Offering.
(3) The Managing Underwriter and Issuer are responsible for the truth and
completeness of the Registration Statement submitted to Bapepam.

Article 73
Every Public Company is required to submit a Registration Statement to Bapepam.

The second part
Procedure for Submission of Registration Statement
Article 74
(1) The Registration Statement becomes effective on the 45th (forty-fifth) day as of
receipt of the Registration Statement in full or at an earlier date
if declared effective by Bapepam.
(2) Within the period as referred to in paragraph (1), Bapepam may request
changes and or additional information from the Issuer or Public Company.
(3) In the event that the Issuer or Public Company submits changes or additions
information, the Registration Statement is deemed to have been resubmitted to
the date of receipt of such changes or additional information.
(4) The Registration Statement cannot become effective until such time as additional information
or changes as referred to in paragraph (2) are accepted and have complied with
conditions set by Bapepam.

Article 75
(1) Bapepam is obliged to pay attention to the completeness, adequacy, objectivity, ease of
understandability, and clarity of the Registration Statement document to ensure that
The Registration Statement complies with the Disclosure Principle.
(2) Bapepam does not provide an assessment of the strengths and weaknesses of a Securities.

Article 76
If the Registration Statement states that the Securities will be listed on the Stock Exchange
and it turns out that the listing requirements are not met, the offer of Securities is null and void
and payment for the said Securities order must be returned to the subscriber.

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Article 77
Provisions regarding the requirements and procedures for submitting a Registration Statement are further regulated
continued by Bapepam.

Part Three
Prospectus and Announcement
Article 78
(1) Each Prospectus is prohibited from containing untrue information regarding Material Facts
or does not contain correct information about the Material Facts required so that
The prospectus does not provide a misleading image.
(2) Each Party is prohibited from stating, directly or indirectly, that Bapepam
have approved, authorized, or authorized a Securities, or have performed
research on various aspects of the advantages or disadvantages of an Securities.
(3) The provisions regarding the Prospectus shall be further regulated by Bapepam.

Article 79
(1) Every announcement in the mass media relating to an Offer
In general, it is prohibited to contain untrue information about material facts and or not
contains a statement of Material Facts required so that the information contained in the
in the announcement does not provide a misleading description.
(2) Matters announced and the contents and requirements of the announcement as intended
in paragraph (1) shall be further regulated by Bapepam.

Part Four
Responsibility for Information
Which Is Not True or Misleading
Article 80
(1) If the Registration Statement in the context of a Public Offering contains information that does not
true about Material Facts or does not contain appropriate information about Material Facts
with the provisions of this Law and or its implementing regulations so that
the information is misleading, then:
a. each Party that signs the Registration Statement;
b. directors and commissioners of the Issuer at the time the Registration Statement becomes effective;
c. Managing Underwriters; and
d. Capital Market Supporting Professionals or other parties who provide opinions or
the information and approval shall be contained in the Registration Statement;
must be responsible, individually or collectively, for the losses incurred
arise as a result of the act.

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(2) The party as referred to in paragraph (1) letter d is only responsible for
opinion or information given.
(3) The provisions as referred to in paragraph (1) shall not apply in the event that the
as referred to in paragraph (1) letter c and letter d can prove that
The party concerned has acted professionally and has taken
sufficient steps to ensure that:
a. the statement or information contained in the Registration Statement is true;
and
b. there is no known Material Fact that is not included in the Statement
Registration required so that the Registration Statement is not misleading.
(4) Claim for compensation in the event of a violation as referred to in paragraph
(1) can only be submitted within 5 (five) years from the Registration Statement
effective.

Article 81
(1) Any Party that offers or sells Securities using the Prospectus
or in any other way, whether written or oral, which contains information that is not
true about Material Facts or does not contain information about Material Facts and
The party knows or ought to know about this
responsible for the losses that arise as a result of the said act.
(2) Securities Buyer who already knows that the information is untrue and misleading
before carrying out the purchase of the said Securities cannot file a claim for compensation
against losses arising from the said Securities transaction.

Part Five
Pre-emptive Rights, Conflicts of Interest, Tender Offers,
Mergers, Mergers and Takeovers
Article 82
(1) Bapepam may require Issuers or Public Companies to grant rights
Pre-order Securities to each shareholder proportionally
if the Issuer or Public Company issues shares or securities which
can be exchanged for shares of the Issuer or Public Company.
(2) Bapepam may require Issuers or Public Companies to obtain approval
majority of the independent shareholders if the Issuer or Public Company is
conduct transactions in which the economic interests of the Issuer or Public Company
conflicts with the personal economic interests of directors, commissioners, or shareholders
the main shares of the Issuer or Public Company in question.
(3) Requirements and procedures for the issuance of pre-emptive rights and transactions
who have a conflict of interest as referred to in paragraph (1) and
paragraph (2) shall be further regulated by Bapepam.

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Article 83
Any Party that makes a tender offer to buy the Issuer's or Company's Securities
The public must comply with the provisions regarding openness, fairness, and proper reporting
set by Bapepam.

Article 84
Issuer or Public Company conducting merger, consolidation, or takeover
other companies are required to follow the provisions regarding transparency, fairness, and reporting
stipulated by Bapepam and other applicable laws and regulations.

CHAPTER X
REPORTING AND DISCLOSURE OF INFORMATION
Article 85
Stock Exchange, Clearing Guarantee Institution, Depository and Settlement Institution, Mutual
Funds, Securities Companies, Investment Advisors, Securities Administration Bureaus, Custodian Banks, Trustees
Trustees, and other Parties who have obtained permission, approval, or registration from
Bapepam must submit a report to Bapepam.

Article 86
(1) Issuers whose Registration Statements have become effective or Public Companies are required to:
a. submit reports periodically to Bapepam and publish reports
it to the community; and
b. submit reports to Bapepam and announce to the public about
material events that can affect the price of Securities no later than the end
the 2nd (second) working day after the occurrence of the event.
(2) Issuer or Public Company whose Registration Statement has become effective
may be exempted from the obligation to submit the report as intended
in paragraph (1) based on the provisions stipulated by BAPEPAM.

Article 87
(1) The director or commissioner of an Issuer or Public Company must report to Bapepam
ownership and any changes in ownership of the shares of the company.
(2) Any Party that owns at least 5% (five percent) of the Issuer's shares or
Public companies are required to report to Bapepam on ownership and any
change in ownership of the company's shares.
(3) The reports as referred to in paragraphs (1) and (2) must be submitted no later than
no later than 10 (ten) days from the occurrence of ownership or change of ownership of
the shares of the Issuer or Public Company.

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Article 88

Provisions and procedures for submitting reports as referred to in Article 85, Article
86, and Article 87 are further regulated by Bapepam.

Article 89

(1) Information that must be submitted by each Party to Bapepam is based on:
the provisions of this Law and or its implementing regulations are publicly available.

(2) Exceptions to the provisions as referred to in paragraph (1) can only be made
by Bapepam.

CHAPTER XI

FRAUD, MARKET MANIPULATION AND
INSIDE TRADING
Article 90

In Securities trading activities, each Party is prohibited directly or indirectly from:

a. deceive or deceive other Parties by using any means and or means;

b. participate in deceiving or deceiving other Parties; and

c. make untrue statements about material facts or do not disclose
material facts so that the statements made are not misleading about the situation
that occurs when a statement is made with the intent to benefit or
avoid harm to yourself or other parties or with the aim of influencing
Other parties to buy or sell Securities.

Article 91

Each Party is prohibited from taking action, either directly or indirectly, with the aim of
to create a false or misleading picture of trading activities, circumstances
market, or the price of Securities on the Stock Exchange.

Article 92

Each Party, either individually or jointly with other Parties, is prohibited from committing
2 (two) or more Securities transactions, either directly or indirectly, causing
the price of Securities on the Stock Exchange remains, increases, or decreases with the aim of influencing other Parties to
buy, sell, or hold Securities.

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Article 93
Each Party is prohibited, in any way, from making statements or providing information
which is materially incorrect or misleading so as to affect the price of Securities on the Exchange
Effect if at the time a statement is made or information is given:
a. The party concerned knows or should know that the statement or
the information is materially incorrect or misleading; or
b. The party concerned is not careful enough in determining the material truth
of the statement or statement.

Article 94
Bapepam may stipulate certain actions that may be taken by Securities Companies that
is not a prohibited action as referred to in Article 91 and Article 92.

Article 95
Insiders from Issuers or Public Companies who have inside information are prohibited
make a purchase or sale of Securities:
a. the Issuer or Public Company in question; or
b. other companies that conduct transactions with the Issuer or Public Company that
concerned.

Article 96
Insiders as referred to in Article 95 are prohibited from:
a. influence other Parties to make purchases or sales of the said Securities;
or
b. provide inside information to any Party that it reasonably suspects may be able to
use the said information to make a purchase or sale of Securities.

Article 97
(1) Any Party that seeks to obtain inside information from insiders
unlawfully and then obtaining it is subject to the same prohibition
with the prohibition that applies to insiders as referred to in Article 95
and Article 96.
(2) Any Party seeking to obtain inside information and then
obtain it without breaking the law is not subject to a prohibition that applies to people
as referred to in Article 95 and Article 96, as long as the information
provided by the Issuer or Public Company without restriction.

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Article 98
Securities Companies that have inside information regarding Issuers or Public Companies
prohibited from transacting the Securities of the Issuer or Public Company, unless:
a.

The transaction is carried out not at his own expense, but on orders
its customers; and

b. The Securities Company does not provide recommendations to its clients regarding
the effect in question.

Article 99
Bapepam can determine Securities transactions that are not included in prohibited Securities transactions
as referred to in Article 95 and Article 96.

CHAPTER XII
EXAMINATION
Article 100
(1) Bapepam may conduct an examination of any Party suspected of committing
or involved in violation of this Law and or regulations
implementation.
(2) In the context of the examination as referred to in paragraph (1), Bapepam has:
authority to:
a. requesting information and or confirmation from the Party suspected of committing or being involved
in violation of this Law and or its implementing regulations
or other Party if deemed necessary;
b. requires Parties suspected of committing or being involved in violations of
This law and or its implementing regulations to do or not
perform certain activities;
c. examine and or make copies of records, books, and or documents
other, whether belonging to a Party suspected of committing or being involved in a violation of
This law and or its implementing regulations or those of other parties
if deemed necessary; and or
d. stipulate the conditions and or allow the Party suspected of committing or being involved
in violation of this Law and or its implementing regulations
to take certain actions needed in order to resolve
losses incurred.
(3) Arrangements regarding the procedures for examination as referred to in paragraph (1) shall be regulated
further by Government Regulation.
(4) Every Bapepam employee assigned an assignment or another Party appointed by Bapepam
to carry out an examination is prohibited from using it for oneself or revealing
information obtained under this Act to any Party, other than
in an effort to achieve Bapepam's objectives or if required by law
other.

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CHAPTER XIII
INVESTIGATION
Article 101
(1) In the event that Bapepam is of the opinion that there is a violation of this Law and or
implementing regulations result in losses for the interests of the Capital Market and/or
endanger the interests of investors or the public, Bapepam stipulates the commencement of
investigative action.
(2) Certain Civil Servant Officials within Bapepam are given special authority
as an investigator to conduct criminal investigations in the Capital Market sector
based on the provisions in the Criminal Procedure Code.
(3) The investigator as referred to in paragraph (2) has the authority to:
a. receive a report, notification, or complaint from someone about the existence of
criminal acts in the Capital Market sector;
b. conduct research on the veracity of reports or information relating to acts
crime in the Capital Market sector;
c. conduct research on the Party suspected of committing or being involved in the
crime in the Capital Market sector;
d. summon, examine, and request information and evidence from each Party
who is suspected of committing, or as a witness in a criminal act in the market sector
Capital;
e. carry out inspections of books, records, and other documents relating to
criminal acts in the Capital Market sector;
f. carry out inspections at every certain place where each item is suspected of being present
evidence of books, records, and other documents as well as confiscate the
goods that can be used as evidence in criminal cases in the market sector
Capital;
g. block accounts with banks or other financial institutions of the alleged Party
commits or is involved in a criminal act in the Capital Market sector;
h. request expert assistance in the context of carrying out the task of investigating criminal acts in
Capital Market sector; and
i. state when the investigation begins and ends.
(4) In the context of carrying out the investigation as referred to in paragraph (1), Bapepam
apply for a permit to the Minister to obtain information from the bank regarding
the financial condition of the suspect at the bank in accordance with the legislation in
banking sector.
(5) The investigator as referred to in paragraph (2) shall notify the commencement of the investigation and
submit the results of their investigations to the public prosecutor in accordance with the provisions
regulated in the Criminal Procedure Code.

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(6) In the framework of implementing the investigative authority as referred to in paragraph
Bapepam can ask for help from other law enforcement officials.
7) Every certain Civil Servant official within Bapepam who is assigned the task
to conduct an investigation, it is prohibited to use it for oneself or to disclose
information obtained under this Act to any Party,
other than in an effort to achieve Bapepam's objectives or if required by
other laws.

CHAPTER XIV
ADMINISTRATIVE SANCTIONS
Article 102
(1) Bapepam imposes administrative sanctions for violations of this Law and
or implementing regulations carried out by each Party that obtains a license,
approval, or registration from Bapepam.
(2) The administrative sanctions as referred to in paragraph (1) may be in the form of:
a. written warning;
b. fines, namely the obligation to pay a certain amount of money;
c. limitation of business activities;
d. Suspension of business;
e. revocation of business license;
f. cancellation of approval; and
g. registration cancellation.
(3) Further provisions regarding administrative sanctions as referred to in paragraph
(1) and paragraph (2) shall be stipulated by a Government Regulation.

CHAPTER XV
CRIMINAL PROVISIONS
Article 103
(1) Any Party conducting activities in the Capital Market without permission, approval, or
registration as referred to in Article 6, Article 13, Article 18, Article 30, Article
34, Article 43, Article 48, Article 50, and Article 64 are punishable by a maximum imprisonment of
5 (five) years and a maximum fine of Rp. 5,000,000,000.00 (five billion rupiah).
(2) Any Party that carries out activities without obtaining the permit as intended
Article 32 is threatened with imprisonment for a maximum of 1 (one) year and a fine
a maximum of Rp.1,000,000,000.00 (one billion rupiah).

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Article 104
Any Party violating the provisions as referred to in Article 90, Article 91,
Article 92, Article 93, Article 95, Article 96, Article 97 paragraph (1), and Article 98 are threatened with criminal
imprisonment for a maximum of 10 (ten) years and a maximum fine of Rp
twelve billion rupiah).

Article 105
Investment Managers and or their affiliated parties who violate the provisions as referred to in
Article 42 is threatened with imprisonment for a maximum of 1 (one) year and a fine of not more than 1 (one) year
1,000,000,000.00 (one billion rupiah).

Article 106
(1) Any Party that violates the provisions as referred to in
Article 70 is threatened with imprisonment for a maximum of 10 (ten) years and a fine of not more than 10 (ten) years
a maximum of Rp. 15,000,000,000.00 (fifteen billion rupiah).
(2) Any Party that violates the provisions as referred to in
Article 73 is threatened with imprisonment for a maximum of 3 (three) years and a fine of a maximum
IDR 5,000,000,000.00 (five billion rupiah).

Article 107
Any Party that deliberately aims to deceive or harm another Party or mislead
Bapepam, eliminate, destroy, abolish, alter, blur,
conceal, or falsify the records of the Party that obtains permission, approval, or
registration, including Issuers and Public Companies, is punishable by a maximum imprisonment of
3 (three) years and a maximum fine of Rp. 5,000,000,000.00 (five billion rupiah).

Article 108
The threat of imprisonment or imprisonment and a fine as referred to in Article
103, Article 104, Article 105, Article 106, and Article 107 also apply to Parties who, either directly or indirectly,
or indirectly, influencing other Parties to violate Articles of
meant.

Article 109
Any Party that does not comply with or hinder the implementation of the provisions as
referred to in Article 100 shall be subject to a maximum imprisonment of 1 (one) year and
a maximum fine of Rp. 1,000,000,000.00 (one billion rupiah).

Article 110
(1) The crime as referred to in Article 103 paragraph (2), Article 105, and Article
109 is a violation.
(2) The crime as referred to in Article 103 paragraph (1), Article 104, Article 106,
and Article 107 is a crime.

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CHAPTER XVI
OTHER PROVISIONS
Article 111
Any Party that suffers losses as a result of violation of this Law
and or its implementing regulations may claim compensation, either individually or
together with other Parties who have similar claims against the Party or Parties
The party responsible for the violation.
Article 112
Bapepam and Bank Indonesia are required to hold consultations and/or coordination in accordance with
their respective functions in supervising the activities of the Custodian and Trustee as well as the activities of
other determined based on the laws and regulations carried out by the Bank
General in the Capital Market.

CHAPTER XVII
TRANSITIONAL TERMS
Article 113
Every company that has met the criteria as a Public Company as regulated
in this Law and has not submitted a Registration Statement to Bapepam
until the date of promulgation of this Law, it is obligatory to comply with the provisions of
this Law no later than 2 (two) years after this Law is promulgated.

Article 114
With the enactment of this Law, then:
a. all laws and regulations that have been issued before the enactment of the Act.
This law is declared to remain valid as long as it does not conflict with the law
is or has not been regulated under this Law;
b. all business licenses, individual permits, approvals, and registrations that have been
issued before the enactment of this Law is declared to remain in force;
c. Registration Statements and applications for business licenses, approvals, and registrations
has been submitted before the enactment of this Law is completed based on the provisions of
in force prior to the enactment of this Law; and
d. clearing, Securities transaction settlement, and Securities depository activities that have been
carried out by one company based on a business license as a Clearing House
Storage and Settlement can still be carried out for the period as stated in the
set by Bapepam.

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CHAPTER XVIII
CLOSING
Article 115
With the enactment of this Law, Law Number 15 of 1952 concerning the stipulation of
“Emergency Law on Stock Exchange” (State Gazette of 1951 Number 79) as
The law (State Gazette of 1952 Number 67) is declared no longer valid.

Article 116
This law came into force on January 1, 1996.
So that everyone knows it, ordering the promulgation of this law by
its placement in the State Gazette of the Republic of Indonesia.

Legalized in Jakarta
on November 10, 1995

PRESIDENT OF THE REPUBLIC OF INDONESIA,

SOEHARTO

Promulgated in Jakarta
on November 10, 1995

MINISTER OF STATE SECRETARY OF STATE
REPUBLIC OF INDONESIA,

MOERDIONO

STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 1995 NUMBER 64

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Explanation of RI Law No. 8/1995

EXPLANATION
ON
LAWS OF THE REPUBLIC INDONESIA
NUMBER 8 YEAR 1995
ABOUT
CAPITAL MARKET
GENERAL
National development is a reflection of the will to continuously improve
welfare and prosperity of the Indonesian people in a fair and equitable manner, as well as develop
community life and the administration of an advanced and democratic country based on
Pancasila and the 1945 Constitution. This will reflects, among other things,
in the Outlines of State Policy which affirms that the "General Development Goals"
The second long term is the creation of human quality and the quality of Indonesian society
who are advanced and independent in an atmosphere of peace and well-being, physically and mentally, in the order of life
society, nation and state based on Pancasila, in the atmosphere of the nation's life
Indonesia, which is completely balanced and in harmony in the relationship between human beings,
Humans with society, humans with nature and their environment, humans with God
The Almighty". Meanwhile, in the economic sector, the second long-term development target is:
among others, is the creation of an independent and reliable economy, by increasing
more equitable prosperity of the people, fairly high growth, and national stability
steady.
In order to achieve this goal, various supporting facilities are needed, including:
in the form of a legal order that encourages, mobilizes, and controls various activities
development in the economy.
One of the legal arrangements needed to support economic development is
provisions in the Capital Market sector which are currently still based on the Act
Number 15 of 1952 concerning the stipulation of the "Emergency Law concerning the Exchange" (Gazette of
State of 1951 Number 79) as Law (State Gazette of 1952 Number
67). With the enactment of the Law on the Capital Market, it is hoped that the Capital Market can
make a greater contribution to development so that the development goals
economics can be achieved.
The Capital Market aims to support the implementation of national development in order to improve
equity, growth, and national economic stability towards improving welfare
people. In order to achieve this goal, the Capital Market has a strategic role as a
one of the sources of financing for the business world, including medium and small businesses to
business development, while on the other hand the Capital Market is also a vehicle for investment
for the community, including small and medium-sized investors.
Provisions governing Capital Market activities, namely Law Number 15 Years
1952 concerning the stipulation of the "Emergency Law on the Exchange" (State Gazette of 1951
Number 79) as a Law (State Gazette of 1952 Number 67) is felt
is no longer in accordance with current developments because of the provisions
contained in the Act does not regulate matters that are very important in
Capital Market activities, namely the obligations of the Parties in a Public Offering to fulfill
The principle of openness, and especially the provisions governing protection
to the general public.

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Explanation of RI Law No. 8/1995

In addition, with the very rapid development in the economic field, coupled with the
economic globalization, then it is time that the provisions regarding market activities
Capital is regulated in a new law, with reference to Pancasila
and the 1945 Constitution.
This law regulates the existence of obligations for companies that do
Public Offering or companies that meet the requirements as a Public Company for
convey information about the state of its business, both in terms of finance, management,
production and matters relating to its business activities to the community. Information
This has a very important meaning for the community as a material for consideration
to make investments. Therefore, in this Law it is regulated regarding the existence of
provisions that require Parties conducting Public Offerings and trading
effect on the secondary market to comply with the Disclosure Principle. Failure of obligations
This results in the Party conducting or related to the Public Offering
responsible for the losses suffered by the community and can be prosecuted criminally
if it is found to contain elements of fraud. In this regard, in the Law
This law also stipulates the obligations surrounding the Parties relating to
Public Offerings such as Underwriters, Accountants, Legal Consultants, Notaries, Appraisers, and
other professions, to comply with the obligations they must fulfill, accompanied by
threats in the form of compensation sanctions and or criminal threats for failure to comply with obligations
existing under this Act.
This law also stipulates the existence of a trading system in the secondary market
so that the Stock Exchange, Clearing Guarantee Institution, and Depository and Settlement Institution
can carry out their respective functions so that trade can be carried out regularly,
reasonable and efficient.
Furthermore, so that activities in the Capital Market can run and be carried out regularly and
reasonable, and so that the investor community can be protected from harmful and inappropriate practices
in line with the provisions contained in this Law, the Market Supervisory Agency
Capital is given the authority to implement and enforce the provisions contained in the
this law. These powers include the authority to conduct investigations,
whose implementation is based on the Criminal Procedure Code.

CHAPTER BY ARTICLE
article 1
Number 1
letter a
What is meant in this letter by:
1) “family relationship due to marriage” is a person's relationship with:
a) husband or wife;
b) parents of husband or wife and husband or wife of children (degree I vertical);
c) grandparents of husband or wife and husband or wife of grandchildren (degree II
vertical);
d) the brother of a husband or wife and the husband or wife of a relative who
concerned (degree II horizontal); and

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Explanation of RI Law No. 8/1995

e) husband or wife of the person's relative (degree II horizontal).
2) “family relationship by descent” is a person's relationship with:
a) parents and children (degree I vertical);
b) grandparents and grandchildren (degree II vertical); and
c) relatives of the person concerned (degree II horizontal).
letter b
What is meant by "employee" in this letter is someone who works for
Another Party, where the other Party has the authority to control and
directing the person concerned to do work for a wage or
salary on a regular basis.
letter c
For example, a relationship between 2 (two) companies where there is 1 (one) or more
members of the same board of directors or board of commissioners are as follows:
Mr. A holds concurrent positions as Director of PT X and PT Y, Commissioner of PT X
and PT Y, or Director of PT X and Commissioner of PT Y.
letter d
What is meant by "control" in this letter is the ability to
determine, directly or indirectly, in any way the management
and or company policy.
For example, the company's relationship with the party that directly controls
these companies are as follows:
Mr. A controls PT X. For example, the company's relationship with Party
Those who do not directly control the company are as follows:
Mr A controls PT X and PT X controls PT Y. Thus, Mr A
indirectly control PT Y.
For example, the relationship between a company and a Party controlled
directly by the company are as follows:
PT Y is controlled by PT X.
For example, the relationship between a company and a Party controlled
indirectly by the company are as follows:
PT Z is controlled by PT Y and PT Y is controlled by PT X. Thus,
PT Z is indirectly controlled by PT X.
letter e
For example, the relationship between 2 (two) companies that are directly controlled
by the same Party are as follows:

PT X and PT Y are controlled by Mr. A.

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For example, the relationship between 2 (two) companies that are indirectly controlled
directly by the same Party are as follows:
PT X 1 is controlled by PT X 2 and PT Y 1 is controlled by PT Y 2, then PT X 2
and PT Y 2 is controlled by Mr. A. Thus, PT X 1 and PT Y 1 are controlled
indirectly by Mr. A.
letter f
What is meant by "major shareholder" in this letter is a Party who, whether
directly or indirectly, owns at least 20% (twenty
percent) of the voting rights of all shares with voting rights issued by
a company or an amount smaller than that as determined by the Agency
Capital Market Supervisor.
For example, the relationship between the company and the major shareholders is as follows:
following:
Mr. A has 20% (twenty percent) of the voting rights of all the shares that have
voting rights issued by PT X.
Number 2
Quite clear
Number 3
Quite clear
Number 4
This understanding also includes systems and or means to bring together offers
buying and selling of Securities, even though the system and/or facilities do not cover the system and/or
or means to trade Securities.
Number 5
What is meant by “derivative of Securities” in this number is derivative of Securities, either
Debt and equity securities, such as options and warrants.
What is meant by “option” in the explanation of this figure is the right owned by
Party to buy or sell to another Party a certain amount of Securities at a price and
in certain time.
What is meant by “warrants” in the explanation of this number are Securities issued
by a company that gives the holder the right to subscribe shares
from the company at a certain price after 6 (six) months or more since the Securities
intended to be published.
Number 6
Quite clear
Number 7
For example, Material Information or Facts, including information regarding:
a. business combination (merger), takeover (acquisition), business consolidation
(consolidation) or the formation of a joint venture;

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Explanation of RI Law No. 8/1995

b. stock split or stock dividend distribution;
c. extraordinary income and dividends;
d. the acquisition or loss of important contracts;
e. significant new product or invention;
f. changes in the company's financial year; and
g. changes in control or significant changes in management;
as long as the information can influence the price of Securities and or decisions
investors, prospective investors, or other parties with an interest in information or
that fact.
Number 8
Custody as referred to in this number includes Collective Custody.
What is meant by "account holder" in this number is the Party whose name
recorded in the Securities account based on the contract made with the Custodian. Holder
account can be the owner or representative of the owner of the Securities recorded in the account
Effect.
For example, a Securities owner deposits Securities in a Securities account in his name at:
Securities Company. Then, this Securities Company deposited the Securities in the account
Securities in the name of the said Securities Company at the Custodian Bank. Next up, Bank
The Custodian deposits the Securities in the Securities account in the name of the Custodian Bank
referred to in the Depository and Settlement Institution. In this case, the Custodian Bank
registered as an account holder at the Depository and Settlement Institution as
Securities Company substitution representative who in this case represents the Securities owner.
What is meant by "Securities account" in the explanation of this figure is a note that
shows the position of Securities and customer funds at the Custodian.
Number 9
What is meant by "exchange transaction clearing" in this number is the process of determining
rights and obligations arising from the Exchange Transaction.
What is meant by "guarantee for settlement of Exchange Transactions" in this number is
providing certainty of the fulfillment of rights and obligations for Securities Exchange Members that arise
of Exchange Transactions.
Number 10
Quite clear
Number 11
Quite clear
Number 12
Quite clear
Number 13
Quite clear

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Explanation of RI Law No. 8/1995

Number 14
Providing advice to other Parties as referred to in this number includes
giving advice orally or in writing, including through publishing
in the mass media.
Number 15
The Public Offering in this figure includes the Securities offering by the Issuer made
within the territory of the Republic of Indonesia or to Indonesian citizens by using
mass media or offered to more than 100 (one hundred) Parties or has been sold to
more than 50 (fifty) Parties within a certain value limit and time limit.
Securities Offering in the territory of the Republic of Indonesia includes Securities offerings made
by domestic or foreign Issuers, both to Indonesian and foreign investors, who
carried out in the territory of the Republic of Indonesia through the fulfillment of the principle of openness.
The terms of the Public Offering also apply to domestic Issuers who carry out
Public Offering abroad to Indonesian citizens. It is required in
in order to protect Indonesian citizens who invest in Securities
offered by that Party outside the territory of the Republic of Indonesia.
Securities Offerings to more than 100 (one hundred) Parties are not associated with
whether the offer is followed by the purchase of Securities or not. While sales
Effects to more than 50 (fifty) Parties are more emphasized on realization
the sale of the said Securities without regard to whether the sale was made through
offer or not.
What is meant by "mass media" in the explanation of this figure are newspapers,
magazines, films, television, radio and other electronic media, as well as letters, brochures and goods
other prints distributed to more than 100 (one hundred) Parties.
Total 100 (one hundred) Parties in the Securities offering and 50 (fifty) Parties in the sale
The effects referred to in this number may change according to developments
Capital market. The changes will be further determined by Bapepam.
Number 16
What is meant by “jointly owned Securities” in this number are Securities which
owned by more than one Party and registered in the name of the Custodian.
For example, Securities in Collective Custody with Depository and Settlement Institutions
registered in the Register of Issuers Securities holders in the name of the Depository Institution
and Settlement continues to be recognized by the Issuer that the Securities are jointly owned by more
from one Party represented by the Depository and Settlement Institution. Effects in
Collective Custody at a Custodian Bank or Securities Company recorded in the account
Securities in the Depository and Settlement Institution are still recognized by the Depository
and Settlement that the Securities are jointly owned by more than one Party who
represented by the Custodian Bank or Securities Company.
Number 17
Quite clear

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Explanation of RI Law No. 8/1995

Number 18
Quite clear
Number 19
Quite clear
Number 20
Quite clear
Number 21
Quite clear
Number 22
Quite clear
Number 23
Quite clear
Number 24
Quite clear
Number 25
Quite clear
Number 26
Quite clear
Number 27
Quite clear
Number 28
Securities lending and borrowing may occur in the event that the Securities Exchange Member does not own the same Securities
sufficient to settle its obligations arising from the sale and purchase of Securities
done on the Stock Exchange.
Other contracts regarding the price of Securities include, among others, options on the stock price index.
Number 29
Quite clear
Number 30
Quite clear
Section 2
General policy is a policy in the Capital Market sector which directly
or indirectly related to fiscal, monetary and policy policies
macroeconomics in general.

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Explanation of RI Law No. 8/1995

Article 3
Paragraph (1)
Given that the Capital Market is a source of financing for the business world and as a
investment vehicle for investors who have a strategic role to
To support the implementation of national development, Capital Market activities need to obtain
supervision so that it can be carried out regularly, fairly and efficiently. For that, by
Bapepam operations are given the authority and obligation to foster, regulate, and
supervising each Party conducting activities in the Capital Market. The supervision
This can be done by taking efforts, both preventive in nature
the form of rules, guidelines, guidance and direction as well as repressively in
form of examination, investigation, and imposition of sanctions.
Paragraph (2)
Quite clear
Article 4
Quite clear
Article 5
letter a
Number 1)
Quite clear
Number 2)

Quite clear
Number 3)
Quite clear
letter b
Quite clear
letter c
Prospective members of the board of directors or commissioners of the Stock Exchange, Clearing Guarantee Institution, and
The Depository and Settlement Institution must fulfill the stipulated requirements
by Bapepam. These requirements include, among others:
1. an individual who is an Indonesian citizen and is capable of carrying out legal actions;
2. have never been declared bankrupt or become a declared director or commissioner
guilty of causing a company to be declared bankrupt;
3. has never been convicted of a criminal act;
4. has never committed a disgraceful act in the Capital Market sector in particular and
in finance in general;
5. have good character and morals;

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Explanation of RI Law No. 8/1995

6. have expertise in the Capital Market sector; and
7. have never committed a material violation of the provisions of the laws and regulations.
Capital Market invitation.
Procedures for nomination of members of the board of directors or commissioners of the Stock Exchange, Clearing House and
Guarantee, as well as Depository and Settlement Institutions are as follows:
1. Candidates for members of the board of directors or commissioners are submitted to Bapepam for appropriate scrutiny
with the requirements set by Bapepam;
2. if the candidate member of the board of directors or commissioner has met the requirements,
Bapepam must give its approval. If based on research results
Bapepam, the candidate does not meet the requirements, Bapepam rejects the nomination
such; and
3. Candidates for members of the board of directors or commissioners that have been approved by Bapepam are appointed by
General Meeting of Shareholders.
Bapepam may temporarily dismiss a member of the board of directors or commissioners
Stock Exchange, Clearing Guarantee Institution, and Depository and Settlement Institution
if the members of the board of directors or commissioners, among others:
1. loses Indonesian citizenship or is incapable of taking legal action;
2. declared bankrupt;
3. being punished for committing a crime;
4. committed a disgraceful act in the Capital Market sector in particular and in the financial sector
finance in general;
5. do not have good character and morals; or
6. commit a material violation of the provisions of the legislation
Capital Market invitation.
In the event that Bapepam temporarily suspends all members of the board of directors, Bapepam may
appoint a Party originating, both from inside and outside the Stock Exchange, Clearing House
and Guarantee, as well as the Depository and Settlement Institution as management
while. Furthermore, the Stock Exchange, Clearing Guarantee Institution, as well as
Depository and Settlement must hold a General Meeting of Shareholders
to appoint new members of the board of directors or commissioners.
letter d
Effective statements in this case indicate the completeness or fulfillment of all procedures
and the requirements for the Registration Statement required under this Act
and or implementing regulations. The effective statement is not a permit
to conduct a Public Offering and also does not mean that Bapepam states
the information disclosed by the Issuer or Public Company is true or
enough.
The Issuer or Public Company that submits the Registration Statement is responsible
answer that all information and statements made are true and not
misleading. Bapepam does not guarantee the truth and completeness of the information provided

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Explanation of RI Law No. 8/1995

submitted in the Registration Statement. In accordance with the authority that exists in
this letter, Bapepam may delay the effectiveness of the Registration Statement in terms of
the method and or requirements of the Registration Statement have not been fulfilled. In addition, Bapepam
may cancel the effectiveness of the Registration Statement in the event that information is obtained
which indicates a violation of this Law and or
implementing regulations.
letter e
Quite clear
letter f
Number 1)
If a Party conducting activities in the Capital Market submits information
through advertisements or promotions that are not in accordance with this Law and or
implementing regulations, to protect the interests of investors and or the market
Capital, Bapepam has the authority to stop the advertisement or promotion
and requires the Party concerned to straighten it out by correcting it
the advertisement or promotion in question.
Number 2)
If the advertisement or promotion in number 1) above results in a loss
to other parties including investors, Bapepam has the authority to require
The party takes the necessary steps to address the consequences
caused, among others, in the form of compensation payments.
letter g
The inspection as referred to in this letter is a routine inspection of
Issuers, Public Companies, and Parties that obtain permits, approvals or registrations
from Bapepam. The inspection can be carried out by Bapepam by requiring:
the intended Parties to submit certain reports or inspect offices and
records such as accounts, books, documents, or working papers that are
manual, mechanical, electronic or otherwise.
letter h
Assignment to other Parties by Bapepam as referred to in this letter,
for example, is the assignment of Bapepam to the Stock Exchange to conduct an audit
against a Securities Company that is a Member of the Stock Exchange. The assignment can
is also given to the Accountant or other Party to conduct an examination in the case of
certain where the services of an Accountant or other party concerned are required.
Letter i
In the event that Bapepam conducts the inspection as referred to in letters e and
letter g and the results of the examination are deemed necessary for the public to know
in order to maintain market integrity and the compliance of each Party with the Law
this law and or its implementing regulations, Bapepam may announce the results
the inspection is based on the authority in this letter.

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letter j
Suspension or cancellation of listing of a Securities on the Stock Exchange or termination
Bapepam may carry out Exchange Transactions on certain Securities if there are:
things or events that endanger the interests of investors or
does not allow the holding of Exchange Transactions on certain Securities in a fair manner,
for example, it is known that the Issuer does not disclose the state of the company that
in fact.
letter k
What is meant by "emergency" in this letter is a state of coercion
beyond the ability of the Party as a result of, among others, the existence of war, natural events
such as earthquake or flood, strike, sabotage or riot, partial subsidence
the amount or the total price of the Securities listed on the Stock Exchange is so large and
material nature that occurs suddenly (crash) , or failure of the trading system sistem
or transaction settlement.
Letter l
If a Party is sanctioned by the Stock Exchange, Clearing Guarantee Institution
or the Depository and Settlement Institution, and the person concerned does not receive
sanctions, the said Party may file an objection to the imposition of
sanctions against Bapepam. Bapepam can grant the request
if based on the results of Bapepam's review, the said sanctions are not in accordance with the
applicable provisions by canceling or changing the decision of the Stock Exchange,
Clearing Guarantee Institution or Depository and Settlement Institution. Otherwise,
Bapepam may reject the application by confirming the decision of the Exchange
Securities, Clearing Guarantee Institution or Depository and Settlement Institution
if the objection to the imposition of the sanction is unfounded.
letter m
What is meant by “licensing fees” in this letter are fees collected
in the context of granting permits issued by Bapepam to Parties who will
carry out activities in the Capital Market, for example granting licenses to the Stock Exchange, Financial Institutions
Clearing Guarantee, Depository and Settlement Institution, Securities Company,
Underwriter Representatives, Broker-Dealer Representatives, Investment Manager Representatives, and
Investment Advisor.
What is meant by "approval fees" in this letter are costs that
collected in the context of granting the approval issued by Bapepam to
Parties who will carry out activities in the Capital Market such as granting approvals
to the bank that will act as Custodian.
What is meant by "registration fee" in this letter are fees that
collected in the context of registration of Trustees and Capital Market Supporting Professionals
which includes registration of Accountants, Appraisers, Notaries, and Legal Consultants.
What is meant by “examination and research fees” in this letter, among others, are:
fees collected in the context of reviewing the Registration Statement document
and examinations involving other Parties in the context of special examinations that
carried out by accountants.

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What is meant by "other fees" in this letter are, among others, fees collected
in providing information needed by investors.
All receipts from the collection of fees determined under the provisions
in this letter represents state revenue and is deposited into the state treasury.
Given the broad scope of Bapepam's duties, including anticipating developments
In the future, Bapepam needs to provide an adequate budget from the Budget
State Revenue and Expenditures (APBN) in order to be able to carry out their duties properly
the best.
letter n
What is meant by "actions needed to prevent public losses"
in this letter are actions that are important and must be taken immediately
to protect the public from violations of this Law and/or regulations
implementation, including among others:
1. decide how to settle transactions in the case of the Clearing Guarantee Institution
unable to complete certain transactions;
2. take important actions in the event of stock counterfeiting such as
proposing a ban on certain Parties to the Director General of Immigration,
Ministry of Justice through the Attorney General;
3. requires the Stock Exchange to amend the regulations it has made if the regulations
it is contrary to the prevailing Capital Market regulations;
4. requires the Issuer to use the proceeds from emission in accordance with the objectives
which have been disclosed in the Prospectus; and
5. agree to make changes to the use of the proceeds from emissions by
the condition that it has obtained the decision of the General Meeting of Shareholders
Stock.
letter o
Quite clear
letter p
In designating other instruments as Securities in this letter, it is done by:
Pay attention to the provisions of the applicable laws and regulations as well as the authority
other institutions, such as Bank Indonesia.
letter q
What is meant by "doing other things" in this letter is the authority
other than those specified in letters a to p.
Other powers granted to Bapepam include, among others:
1. annual budget plan and use of Stock Exchange profits must be prepared in accordance with
with the provisions stipulated by and reported to Bapepam
as stipulated in Article 7 paragraph (3);
2. approval of regulations that must be made by the Stock Exchange, including any amendments thereto
as referred to in Article 11;

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Explanation of RI Law No. 8/1995

3. determination of other services that may be provided by the Clearing Guarantee Institution
and the Depository and Settlement Institution as stipulated in the
Article 14 paragraph (3); and
4. annual budget plan and use of Clearing Guarantee Institution's profits
as well as the Depository and Settlement Institution which must be prepared in accordance with the
provisions stipulated by and reported to Bapepam as follows:
stipulated in Article 14 paragraph (4).
Article 6
Paragraph (1)
The activities of the Stock Exchange are basically to organize and provide a system
and or Securities trading facilities for its members. Considering trade
referred to in relation to public funds invested in Securities, trading
must be carried out regularly, fairly and efficiently. Therefore,
The implementation of Stock Exchange activities can only be carried out after obtaining a license
efforts of Bapepam.
Paragraph (2)
What is meant by "requirements and procedures for licensing" in this paragraph are provisions
regarding, among others:
a. business permit;
b. provisions that must be regulated in the articles of association;
c. management;
d. capital; and
e. economic background of the establishment of the Stock Exchange.
Article 7
Paragraph (1)
Securities trading regularly, fairly, and efficiently is a trade that
organized based on a clear rule and implemented consistently.
Thus, the price that occurs reflects the market mechanism based on the strength of the market
demand and supply. Efficient Securities Trading is reflected in settlement
fast transactions with relatively low fees.
Paragraph (2)
The Stock Exchange was established to organize and provide systems and or facilities
Securities trading. With the availability of good systems and or facilities, Members
Stock Exchange who is also a shareholder of the relevant Stock Exchange may conduct:
offer to buy and sell Securities regularly, fairly and efficiently. In addition, the availability of
the said system and/or facilities enable the Stock Exchange to carry out supervision
their members more effectively.

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Paragraph (3)
In preparing the annual budget plan and the use of profits, the Stock Exchange must be guided by:
on the principle of Capital Market efficiency and taking into account the provisions stipulated by Bapepam
which concerns, among others, the following:
a. improve the system or means of trading Securities;
b. improve the system of guidance and supervision of Stock Exchange Members;
c. develop an efficient Securities listing system;
d. develop a clearing and settlement system for Exchange Transactions and other matters
relating to the Stock Exchange;
e. improve the information service system;
f. carry out Capital Market development activities through promotion and research activities;
and
g. improve human resource capabilities.
The annual budget plan and the use of Stock Exchange profits are decided by the General Meeting
Shareholders and submitted to Bapepam.
If based on the results of Bapepam's research, the annual budget plan and the use of profits
If the Stock Exchange does not comply with the above matters, Bapepam may reject the plan
annual budget and the use of those profits. In the event that Bapepam rejects the budget plan
and the use of the said profit, the directors of the Stock Exchange are required to make adjustments and
request approval from the commissioners of the Stock Exchange before being resubmitted to Bapepam for
obtain approval. The annual budget plan and the use of the profits are implemented
after obtaining Bapepam approval.
Article 8
Because the purpose of the Stock Exchange is to provide a trading system and or means
Securities and those who can trade Securities on the Stock Exchange are only Securities Companies that
carry out activities as a Broker-Dealer, the shareholder of the Stock Exchange is limited
only on Securities Companies that have obtained a business license from Bapepam as an Intermediary
Securities Dealer.
Article 9
Paragraph (1)
The Stock Exchange is an institution that is authorized to regulate the implementation of
its activities. Therefore, the provisions issued by the Stock Exchange have the power to
which must be adhered to by Securities Exchange Members, Issuers whose securities are listed on the Exchange
the Securities, the Clearing Guarantee Institution, the Depository and Settlement Institution,
Custodian or other Party that has a contractual working relationship with the Exchange
Effect.
However, in terms of making regulations regarding clearing and settlement
Exchange Transactions, these regulations need to be made together with the Clearing House and
Guarantee.

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What is meant by “other matters” in this paragraph is the authority of the Stock Exchange to
stipulate rules regarding examination of Securities Exchange Members, rules that
relating to the coordination mechanism for the implementation of the functions of the Stock Exchange with the Institution
Clearing Guarantee and Depository and Settlement Institution, and for
anticipate future developments.
Securities equivalence is the nature of Securities that can be exchanged with similar Securities
which have the same value and are issued by the same Issuer.
Paragraph (2)
In order to determine the provisions regarding the transfer of Securities as referred to in
in this paragraph, the Stock Exchange is required to pay attention to the common practice prevailing in the market
Capital. Transfer of Securities referred to in this case is the transfer of inherent rights hak
on Effects.
Paragraph (3)
Stock Exchange revenue basically comes from levies in the form of membership fees,
transaction fees, and Securities listing fees. The use of the said levy is permitted
to finance the implementation of its functions so that Securities trading on the Stock Exchange
carried out by its members can be carried out in an orderly, fair, and efficient manner.
Paragraph (4)
The amount of fees and fees determined by the Stock Exchange must be based on
the need for the operation and development of the Stock Exchange. In the case of funds that
required for the operation and development of the Stock Exchange is sufficient,
costs and fees can be reduced.
Article 10
The prohibition in this Article is intended to avoid unfair competition
healthy among the Stock Exchanges. Therefore, a Securities Company can become a member
more than one Stock Exchange.
Article 11
In order for the regulations issued by the Stock Exchange to comply with the provisions of the
this law and or its implementing regulations, the said regulations must receive
approval of Bapepam before it is declared effective.
Article 12
Paragraph (1)
The establishment of an audit unit at each Stock Exchange is intended to supervise
against Securities Exchange Members and Stock Exchange management can be carried out continuously
continuously to ensure that every Member of the Stock Exchange and the management of the Stock Exchange
carry out its activities in accordance with this Law, its implementing regulations
and or the provisions of the Stock Exchange.

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Paragraph (2)
The reporting in this paragraph is intended so that the directors and board of commissioners of the Stock Exchange and
Bapepam may take the necessary actions or steps to address
problems found, both on the Securities Exchange Member and the Stock Exchange.
Paragraph (3)
This provision is intended for the Stock Exchange to administer all unit reports laporan
inspectors properly so that they are always available when needed by the
Bapepam.
Article 13
Paragraph (1)
The activities of the Clearing Guarantee Institution are basically a continuation of
Stock Exchange activities in the context of the settlement of Exchange Transactions. Remembering activities
This relates to public funds invested in Securities, Clearing Houses
and Guarantees must meet certain technical requirements for the completion of the Transaction
Exchanges can be carried out regularly, fairly and efficiently.
Likewise, the Depository and Settlement Institution that carries out
the function as a safe central custodian for the purpose of depositing Securities is also required
meet certain technical requirements. In this regard, the two institutions
must obtain a business license from Bapepam.
Paragraph (2)
What is meant by "requirements and procedures for licensing" in this paragraph are:
provisions regarding, among others:
a. business permit;
b. provisions that must be regulated in the articles of association;
c. management; and
d. capital.
Article 14
Paragraph (1)
Clearing activities are basically a process used to determine
the rights and obligations of the Securities Exchange Members for the transactions they carry out so that
they know each other's rights and obligations.
Paragraph (2)
Quite clear
Paragraph (3)
What is meant by "other services" in this paragraph include services related to
with the rights of investors, such as the distribution of documents regarding power in

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granting of voting rights, distribution of annual reports, processing of preemptive rights
first, acceptance of Securities in the context of tender offers, as well as the provision of services
settlement of foreign central custodians.
Paragraph (4)
In preparing the annual budget plan and use of profits, the Clearing House and
Guarantee and Depository and Settlement Institutions must be guided by
the principle of capital market efficiency and taking into account the provisions stipulated by Bapepam
which concerns, among others, the following:
a. improve clearing and guarantee services as well as settlement
Exchange transactions are regular, fair and efficient;
b. carry out the improvement of central custodian services and settlement
transactions in an orderly, fair and efficient manner;
c. increase the activities of the settlement of Exchange Transactions by bookkeeping
secure; and
d. developing Securities depository security system.
Annual budget plan and use of Clearing Guarantee Institution's profits and
Depository and Settlement Institution is decided by the General Meeting of Shareholders
and submitted to Bapepam.
If based on the results of Bapepam's research, the annual budget plan and use
profit of the Clearing Guarantee Institution and the Depository and Settlement Institution
not in accordance with the matters mentioned above, Bapepam may reject the budget plan
year and the use of that profit. In the event that Bapepam rejects the budget plan
annual income and the use of the said profit, the directors of the Clearing Guarantee Institution
and the Depository and Settlement Institution are required to make adjustments and request
approval of the commissioners of the Clearing Guarantee Institution and the Depository Institution
and Settlement before being resubmitted to Bapepam to obtain
approval. The annual budget plan and the use of the said profit can be
implemented after obtaining Bapepam approval.
Article 15
Paragraph (1)
Activities of the Clearing Guarantee Institution and the Depository and Settlement Institution
very closely related to the settlement of transactions that occur on the Stock Exchange. By
Therefore, the ownership of shares in the Clearing Guarantee Institution and the Depository Institution
and Settlement is prioritized for institutions that use the second service
institutions, such as the Stock Exchange, Securities Companies, Securities Administration Bureaus, and Banks
Custodian. However, if the need for funds for the operation of the Clearing Guarantee Institution
and the Depository and Settlement Institution felt that it could not be fulfilled by
these institutions, it is possible for other parties to participate as shareholders
based on Bapepam approval.
Paragraph (2)
Clearing and guarantee activities for the settlement of Exchange Transactions are one unit
with Stock Exchange activities. Accordingly, in order to guarantee

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Alignment between the implementation of clearing activities and guarantee of Transaction settlement
Exchange with Stock Exchange activities, in this paragraph it is determined that the majority of shares
The Clearing Guarantee Institution is owned by the Stock Exchange.
The majority of the shares are shareholders who own more than 50% (fifty percent)
of the issued and paid-up capital of the company.
Article 16
Paragraph (1)
In order for the clearing and guarantee of the settlement of Exchange Transactions to be carried out regularly,
reasonable, and efficient, there needs to be a clear rule that can protect the interests of
service users. For this reason, the Clearing Guarantee Institution is authorized to:
establish regulations that are binding and must be obeyed by service users
that.
Paragraph (2)
So that the interests of the Parties related to the activities of the Depository Institution and
Settlement is protected, the Depository and Settlement Institution is obliged to issue
regulations regarding the rights and obligations of service users of the Depository and Settlement Institution.
Paragraph (3)
As an institution that is not intended to seek profit, the costs
for the use of the services of the Clearing Guarantee Institution or the Depository Institution and
Completion must be adjusted to the funding needs of the implementation and development
Clearing Guarantee Institution or Depository and Settlement Institution after
consider the interests of service users.
Article 17
So that the regulations issued by the Clearing Guarantee Institution or the Institution
Storage and Settlement in accordance with this Law and or regulations
In its implementation, the regulation must first obtain Bapepam approval
before being declared effective.
Article 18
Paragraph (1)
letter a
Mutual Funds in the form of a Company are Issuers whose business activities are to collect
funds by selling shares, and then funds from selling these shares
invested in various types of Securities traded in the Capital Market and the market
money.
letter b
Collective investment contract is a contract between Investment Manager and Custodian Bank
which binds the Participation Unit holders where the Investment Manager is authorized
to manage the collective investment portfolio and the Custodian Bank is authorized to
carry out Collective Custody.

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Mutual Funds in the form of collective investment contracts raise funds by issuing
Participation Units to the investor community and then the funds are invested
on various types of Securities traded on the Capital Market and on the money market.
Paragraph (2)
Open Mutual Funds are Mutual Funds that can offer and repurchase
shares from the investor up to the amount of capital that has been issued,
while closed Mutual Funds are Mutual Funds that cannot be repurchased
shares that have been sold to investors.
Paragraph (3)
Quite clear
Paragraph (4)
In order for the management of collective investment contract funds to be carried out professionally,
management can only be carried out by the Investment Manager.
Paragraph (5)
What is meant by "requirements and procedures for licensing" in this paragraph are provisions
regarding, among others:
a. business permit;
b. provisions that must be regulated in the articles of association;
c. management; and
d. capital.
Article 19
Paragraph (1)
Quite clear
Paragraph (2)
Quite clear
Paragraph (3)
letter a
What is meant by “most” in this letter is a certain number of values
which can materially affect the calculation of portfolio value and asset value
net per share of the Mutual Fund. Calculation of portfolio value and net assets per share
based on the price of Securities on the Stock Exchange where the Mutual Fund portfolio
traded. If the Stock Exchange is closed, there is no price for the Securities that
become the basis for calculating the portfolio value and net asset value per share of the Mutual Fund
Fund.

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letter b
What is meant by "mostly" in this letter is as meant
in letter a. If a Securities that is part of the Mutual Fund portfolio is discontinued
trading on the Stock Exchange, then there is no price for the Securities.
letter c
What is meant by “emergency” in this letter is as meant
in the explanation of Article 5 letter k.
letter d
The provisions in this letter are intended to anticipate the development of the Capital Market
which allows for situations outside of the usual letters a, b, and c
governed by the contract of the Parties based on the principle of freedom of contract
as regulated in Article 1338 of the Civil Code. Therefore
Therefore, if there are other things other than the letters a, b, and c, they need approval
in advance from Bapepam before the contract takes effect and binds the Parties.
Article 20
Paragraph (1)
Repurchase of Mutual Fund Participation Units in the form of a collective investment contract
carried out by the Investment Manager and charged to the Mutual Fund account. Fund
which is used to buy back the Participation Units carried out by the Manager
Investment comes from the wealth of the Mutual Fund.
Paragraph (2)
Quite clear
Paragraph (3)
letter a
What is meant by “most” in this letter is a certain number of values
which can materially affect the calculation of portfolio value and asset value
net per Mutual Fund Participation Unit. Calculation of portfolio value and net assets
per Participation Unit based on the price of Securities on the Stock Exchange in which the Mutual portfolio
Traded funds. If the Stock Exchange is closed, then there is no price for
Securities that are the basis for calculating portfolio value and net asset value per Unit
Investments from Mutual Funds.
letter b
What is meant by "mostly" in this letter is as meant
in letter a. If a Securities that is part of the Mutual Fund portfolio is discontinued
trading on the Stock Exchange, then there is no price for the Securities.

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letter c
What is meant by “emergency” in this letter is as meant
in the explanation of Article 5 letter k.
letter d
What is meant by "other matters" in this letter are those referred to in
in the explanation of Article 19 paragraph (3) letter d.
Article 21
Paragraph (1)
What is meant by “Mutual Fund management” is the management of Mutual Funds
Funds by Investment Manager.
Paragraph (2)
What is meant by "management contract" in this paragraph, among other things, contains:
a. portfolio diversification plan in the money market and in the Capital Market;
b. Securities diversification plan in bonds and stocks;
c. investment diversification plan in the industrial sector; and
d. prohibition of investment in certain fields.
Paragraph (3)
What is meant by "management contract" in this paragraph, among other things, contains:
a. portfolio diversification plan in the money market and in the Capital Market;
b. Securities diversification plan in bonds and stocks;
c. investment diversification plan in the industrial sector; and
d. prohibition of investment in certain fields.
Paragraph (4)
What is meant by "stipulations to be further regulated by Bapepam" in
This verse includes, among other things:
a. guidelines for preparing investment management contracts; and
b. procedures for submitting a draft investment management contract.
Article 22
The fair market value of a Securities is the market price or the exchange rate of the Securities itself if the Securities
are actively traded on the Stock Exchange. However, fair market value can
different from the market price if the transaction on the Securities is not active or not
transacted within a certain period of time. In such case, the criteria for determining the value of
fair market is calculated in accordance with the provisions stipulated by Bapepam.
What is meant by “exchange day” in this Article is the day on which the Stock Exchange
do activities.

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Article 23
What is meant by “net asset value” in this Article is the market value
fair value of a Securities and other assets of the Mutual Fund minus all liabilities.
Article 24
Paragraph (1)
The prohibition in this provision does not include Mutual Funds buying bonds,
Other debt securities, and or deposit funds in a bank.
Paragraph (2)
Quite clear
Paragraph (3)
Matters relating to investment restrictions include, among others:
a. the amount of investment in one type of Securities;
b. restrictions on investment in overseas Securities; and
c. types of instruments that are prohibited from being purchased by Mutual Funds.
Article 25
Paragraph (1)
Mutual Fund assets consist of cash and securities, including certificates of deposit,
commercial securities, stocks, bonds, and proof of debt.

The obligation to keep Mutual Fund assets at the Custodian Bank is intended to
securing the assets of the Mutual Fund. Therefore, it is necessary to separate the functions
storage performed by the Custodian Bank and the management functions performed
by the Investment Manager.
Paragraph (2)
To avoid conflicts of interest in the management of Mutual funds
Funds, the authority of the Investment Manager and the Custodian Bank need to be limited. Investment Manager
only acts as a manager, while the Custodian Bank keeps and
administering Mutual Fund assets. To guarantee this, the Investment Manager
prohibited from being affiliated with the Custodian Bank.
Paragraph (3)

The net asset value of an open-ended Mutual Fund is calculated and announced every trading day.
The net asset value of a closed Mutual Fund is calculated and announced at least
Once in a week.

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Article 26
Paragraph (1)
The Board of Directors of the Mutual Fund acts to supervise the implementation of the management of the Mutual Fund,
including the deposit of Mutual Fund assets. Therefore, the board of directors is obliged to make
Mutual Fund asset storage contract with Custodian Bank.
Paragraph (2)
What is meant by "contract for the safekeeping of wealth" in this paragraph, among others:
load :
a. separation of Mutual Fund Securities from Custodian;
b. recording of mutation of Mutual Fund assets;
c. prohibition of cessation of Custodian activities prior to appointment of a replacement Custodian;
and
d. preparation and submission of reports to the Investment Manager and Bapepam.
Paragraph (3)
What is meant by "stipulations to be further regulated by Bapepam" in
This verse includes, among other things:
a. guidelines for drafting storage contracts; and
b. the procedure for submitting a draft investment property depository contract
collective.
Article 27
Paragraph (1)
Considering that all funds managed by the Investment Manager are public funds,
the need for maximum security by requiring the Investment Manager to
carry out their duties as well as possible for the benefit of the Mutual Fund.
Paragraph (2)
The Investment Manager pursuant to this paragraph is liable for the loss of the Mutual
Funds that arise due to management that is not carried out in good faith and is not
with full responsibility for the interest of the Mutual Fund.
Article 28
Paragraph (1)
Mutual Fund's share value is a reflection of the net value of its portfolio. every time
changes in portfolio value, the value of net assets per share changes as well.
Investors buy or sell Mutual Fund shares according to the net asset value
per share. Both at first established and after operating the stock price
Mutual Funds are always the same as the net asset value per share, only the asset value
net per share is always changing according to the development of value
portfolio. Therefore, Mutual Fund shares are issued without par value.

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Paragraph (2)
Capital deposit at the time of establishment of the Mutual Fund in the form of a Company by the founder,
only intended to initiate the establishment of the said Mutual Fund. To that end, founder
required to fulfill the issued and paid-up capital in
at the time the Mutual Fund was established at least 1% (one percent) of the
the authorized capital of the Mutual Fund. Fulfillment of further capital up to authorized capital
will be made through a Public Offering because Mutual Funds are a place for
collect funds from the investor community to be further invested in
Securities Portfolio.
Paragraph (3)
General Meeting of Shareholders approval is not required due to repurchase
shares that have been issued by the Mutual Fund and further transfers
shares can occur at any time in the event that the Mutual Fund shareholders sell their shares
return the shares in question.
Paragraph (4)
The funds referred to in this paragraph, among others, are cash and proceeds from portfolio sales
Mutual Funds.
Article 29
Paragraph (1) and Paragraph (2)
Basically all the profits earned by the Mutual Fund will be distributed as
dividends to Mutual Fund shareholders.
Mutual Funds do not have loans from third parties. Therefore, there is no need
reserve funds to protect third party funds. However, in order to maintain
and increase the value of its investment, Mutual Funds can form a reserve fund.
Article 30
Paragraph (1)
To carry out activities as a Securities Company, various requirements are required
including sufficient expertise and capital.
Paragraph (2)
A business license as an Underwriter is also valid as an intermediary business license
Securities Dealer. Thus, the Securities Company that already has the license, in
In addition, it can act as an Underwriter, it can also act as an Underwriter
Securities Brokerage.
Meanwhile, a Securities Company that only has a business license as a Broker-Dealer
Securities cannot carry out activities as an Underwriter.
Paragraph (3)
Parties who carry out activities as Underwriters, Broker-Dealers,
or the Investment Manager of the Securities as referred to in this paragraph is not required
obtain a business license from Bapepam.

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However, because the said activity can be carried out by a Party that has obtained
business license from Bapepam, and also because there is the possibility of new Securities being
traded in these activities there is no government agency that regulates
and supervise it, then Bapepam can exercise its authority based on
this law and or its implementing regulations.
Paragraph (4)
What is meant by "requirements and procedures for licensing" in this paragraph are:
provisions regarding, among others:
a. management, capital and expert requirements; and
b. procedure for submitting a permit application.
Article 31
What is meant by “all activities related to Securities” in this Article
are activities carried out by Securities Companies which include, among others
activities as Underwriter, Broker-Dealer, and Investment Manager.
What is meant by "employee" in this Article is as referred to in
Elucidation of Article 1 number 1 letter b.
What is meant by “Other parties working for Securities Companies” in Article
This is the Party appointed by the Securities Company to perform certain tasks
even though the Party is not an employee of the Securities Company in question.
Article 32
Paragraph (1)
Underwriter Representatives act on behalf of the Securities Company's interests to kepentingan
activities related to the implementation of securities underwriting.
Broker-Dealer Representatives act on behalf of the Securities Company's interests to
activities related to the implementation of Securities trading.
The Investment Manager's Representative acts on behalf of the Securities Company's interests for
related to Securities Portfolio management.
Paragraph (2)
What is meant by "requirements and procedures for licensing" in this paragraph are:
provisions regarding, among others:
a. expertise and experience; and
b. procedure for submitting a permit application.
Article 33
Paragraph (1)
Permission to act as an Underwriter's Representative is also valid as a Representative's license
Securities Brokerage. Therefore, natural persons who have the Representative's permission
The Underwriter may represent a Securities Company that carries out activities as
Underwriters and Broker-Dealers.

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Meanwhile, an individual who has a Broker-Dealer Representative license is only
may represent the interests of Securities Companies conducting activities as an intermediary
Securities Dealer.
Paragraph (2)
Individuals as referred to in this paragraph work for the benefit of
the company and the customers of the companies it represents. To keep it from happening
conflict of interest, Underwriter Representative, Broker-Dealer Representative, or
Investment Manager Representative can only work for one Securities Company.
Article 34
Paragraph (1)
The activity of an Investment Advisor is to provide advice on the sale or
purchase of Securities in exchange for services. Therefore, Investment Advisor
must meet certain requirements such as expertise in the field of Securities analysis.
Included in the Investment Advisory activities are activities carried out by
Securities rating company. To make sure of that before doing
For its activities, Investment Advisors are required to first obtain a business license from
Bapepam.
Paragraph (2)
What is meant by "requirements and procedures for licensing" in this paragraph are:
provisions regarding, among others:
a. requirements that must be met by prospective Investment Advisors, among others, have:
individual license as Investment Manager Representative; and
b. procedures for submitting an application to become an Investment Advisor.
Article 35
letter a
The business activities of a Securities Company or Investment Advisor are basically based on:
trust from customers. Therefore, in carrying out its activities,
Securities Companies or Investment Advisors must prioritize and protect interests
customers as long as the customer's interests do not conflict with the
applicable laws and regulations and must avoid all actions
contrary to the interests of the customer concerned.
For example, securities company marketing employees are prohibited from influencing their customers
who have limited funds to invest in Securities that have
high risk.
letter b
Quite clear

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letter c
As a Party that gains the trust of its clients, Securities Companies or
The Investment Adviser must correctly and truthfully disclose Material Facts
for customers to know about their professional abilities and financial condition.
letter d
The prohibition referred to in this letter is to avoid the possibility of
the occurrence of a conflict of interest of the Securities Company or Investment Advisor with the
require them to disclose any interest in Securities that Efek
concerned.
In the event that a Securities Company or Investment Advisor has an interest in
a Securities together with its clients, they are obliged to notify this
to its customers before making recommendations.
Interest in Securities arises, among others if:
1. Parties, either directly or indirectly, individually or
together with other Parties have Securities or are entitled to dividends, interest
or proceeds from the sale and or use of Securities;
2. The party is bound by an agreement or agreement to purchase Securities,
has the right to assign or transfer the Securities, or has
the right to pre-order Securities;
3. The party who is required to purchase the remaining Securities that are not sold out within the
Public Offering; and
4. Parties, either individually or jointly with other Parties,
control the Party as referred to in number 1, number 2, or
number 3 explanation letter d.
letter e
Apart from being a means of mobilizing public funds, the Public Offering is intended
to create liquidity for the Securities concerned. Therefore, the spread
The effect on a large number of investors is very important. Mastery
Securities offered in the framework of a Public Offering by a small number of actors in
The Capital Market will not be able to create liquidity for the Securities concerned.
On the other hand it may create opportunities for the Parties to
take advantage of market conditions to enrich themselves.
In order to achieve this objective, in the event of excess demand in Supply
In general, the Securities Company acting as the Underwriter must prioritize
interests of other unaffiliated parties who have ordered Securities rather than orders
Underwriters themselves, sales agents, and all affiliated parties.
Article 36
Letter a and letter b
Due to the relationship between the customer and the Securities Company or Investment Advisor
based on trust, it is appropriate for a Securities Company or Advisor
Investments know the desires, abilities, and backgrounds of customers.

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By knowing these things, the Securities Company or Investment Advisor can
determine the direction in providing services in accordance with the customer's circumstances so that
situations in which a Securities Company or Investment Advisor can be avoided
abuse the trust given to their own interests by
compromising the interests of its customers.
In addition, Securities Companies or Investment Advisors are required to properly keep all
records relating to customer orders, transactions and investment activities.
Thus, these records can be known by customers at any time to
evidentiary interests.
Article 37
letter a
Client's securities managed by Securities Company are customer's deposit, not
is part of the assets of the Securities Company. Therefore, the client's Securities
must be kept in a separate account from the Securities Company's account.
Since the client's Securities are not part of the Securities Company's assets,
in the event that the Securities Company concerned goes bankrupt or is liquidated, the client's Securities
it is not part of the bankruptcy estate or liquidated assets.
Thus, all creditors or other parties who have claim rights against
Securities Companies do not have the right to sue clients' Securities managed by
Securities Company.
letter b
In addition to the obligation to separate client's Securities from the assets of the Securities Company,
Securities Companies are also required to keep separate books of account for each
clients so that there is no mixing of Securities among their clients. Other than that,
Securities Companies also provide a safe place to store customer assets
to avoid possible loss, damage or risk of theft.
With such separate bookkeeping, each client of a Securities Company can
easily find out the amount of effect and use it for the benefit
proof.
Article 38
The prohibition as referred to in this Article applies to Securities Companies that act
as a Broker-Dealer in the event that the person concerned will purchase Securities for
its own interests or its affiliated parties where at the same time there are
purchase orders from unaffiliated parties with the same Securities transaction requirements persyaratan
or higher than the Securities transaction requirements for the Broker-Dealer's interest
concerned or its affiliated parties. However, in the case of a Broker-Dealer
intended to purchase Securities with higher Securities transaction requirements than
with the requirements proposed by an unaffiliated Party, Broker-Dealer
said party may purchase the said Securities, either for his/her own interest or for the
affiliates.

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The same prohibition also applies in the case of the said Broker-Dealer
intends to sell Securities for its own benefit or its affiliated party
where at the same time there is a sell order from an unaffiliated party
with Securities transaction requirements equal to or lower than the requirements
Securities transaction for the interest of the relevant Broker-Dealer or
Affiliated parties. However, in the event that the Broker-Dealer intends to sell
Securities with lower Securities transaction requirements compared to
requirements submitted by an unaffiliated Party, the Merchant Broker
The Securities in question can sell the Securities, either for their own benefit
and its affiliated parties.
For example, a Party that is not affiliated with a Broker-Dealer submits a
a purchase order for PT X's shares at a price of IDR 10,000.00 while at the same time
at the same time the Broker-Dealer intends to buy the same shares
with a price above IDR 10,000.00. In this case, the Broker-Dealer
may purchase the said shares either for their own benefit or for
interests of its affiliated parties.
Another example, a Party that is not affiliated with a Broker-Dealer submits a
a sell order for PT X's shares at a price of Rp. 10,000.00, while at the same time
simultaneously the Broker-Dealer intends to sell the same shares
at a price lower than IDR 10,000.00. In this case, the Merchant Broker
The said securities may sell the shares for their own interests or for
interests of its affiliated parties.
Article 39
If the Underwriter and Issuer have agreed to carry out the Offer
General based on the type of contract specified, the Party is obliged to perform
The Public Offering is in accordance with the contract made and for that it must be
included in the Prospectus.
Securities underwriting contract can be in the form of full commitment
or best effort. In full force, Underwriter
Securities are responsible for taking the remaining unsold Securities, while with
best ability, the Underwriter is not responsible for the remaining Securities
that are not sold, but try their best to sell the Issuer's Securities.
Article 40
Basically, Issuers can issue Securities without using the services of an Underwriter
Effect. In this case, the price setting is carried out by the Issuer concerned.
The use of the services of the Underwriter is intended to assist Issuers in marketing
and or sell the offered Securities so that there is certainty of obtaining the proceeds
sale of the said Securities. While the decision to invest in
The securities offered are entirely in the hands of investors. Therefore,
the use of the services of an Underwriter affiliated with the Issuer basically
can be equated with Securities offering without using the services of an Underwriter
Effect. However, the guarantee must really pay attention to the existence of
possible conflict of interest.
Thus, the relationship between the Issuer and the Underwriter is not a factor
dominant for investors as long as the relationship in question is clearly stated in the
Prospectus.

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With the inclusion in the Prospectus of the relationship as referred to in
In this article, investors can find out and assess the degree of independence from
The Securities Company that acts as the Underwriter for the Securities
published by the Issuer.
What is meant by "other relationships of a material nature" in this Article, are between:
others include material business relationships between the Issuer and the Underwriter
Securities such as debt-receivable relationships and the provision of certain services.
Article 41
This provision is intended to protect the interests of the Mutual Fund from being imposed
unreasonable commission by a Securities Company acting at the same time as a Manager
Investment and as Broker-Dealer for Mutual Funds or by Brokers
Securities Dealer affiliated with the relevant Securities Company.
Article 42
Considering that investment decisions must be made solely in the interests of the shareholders
Mutual Fund shares in the form of a Company or Participation Unit holder of an investment contract
Collectively, the Investment Manager is prohibited from receiving compensation in any form that may
influence their decision to buy or sell Securities for
the Mutual Fund.
Commissions obtained by Securities Companies in the context of providing services as an Intermediary
Securities Dealer without violating the provisions as referred to in Article
41 and other fees related to the management of investment funds as
stated in the investment management contract is not a prohibited reward
based on this provision.
Article 43
Paragraph (1)
Custody activities are one of the activities of Commercial Banks as referred to in
laws and regulations in the banking sector. Therefore, commercial banks do not
require permission to carry out custody activities. However, to do
activities as a Custodian which is a broader activity than the activities of
custody and related to the activities of other institutions such as Depository Institutions
and Settlement, Securities Companies, and Mutual Funds, Commercial Banks still require
Bapepam approval.
Depository and Settlement Institutions or Securities Companies do not require a permit
or separate approval to carry out activities as Custodian because
a permit that has been granted as a Depository and Settlement Institution or
Securities Companies already include Custodian activities.
Paragraph (2)
What is meant by "requirements and procedures for granting approval" in paragraph
These are provisions regarding, among others:
a. requirements for the provision of facilities;
b. expert requirements;

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c. requirements for the person in charge of Custodian activities at the Commercial Bank;
and
d. procedures for submitting an application for approval.
Article 44
Paragraph (1)
Quite clear
Paragraph (2)
Quite clear
Paragraph (3)
Because Securities that are deposited or recorded in a Securities account are not
Custodian assets, such Securities cannot be taken or confiscated by the Custodian creditors.
In the event that the Custodian experiences bankruptcy, all Securities deposited with the Custodian
is not included in the bankruptcy estate and must be returned to the
the account holder concerned.
Article 45
The form of a written order as referred to in this Article can be in the form of a letter
signed or other form of order in accordance with the contract made
between the Custodian and the account holder.
Article 46
Because the Securities in the Securities account are deposited and administered at the Custodian,
account holders should be protected from losses that
arise as a result of the Custodian's error, among others due to:
a. lost or damaged assets or records regarding assets in custody;
b. delay in the delivery of assets out of custody; or
c. failure of the account holder to receive profits in the form of dividends, interest,
or other rights to assets in custody.
Article 47
Paragraph (1)
Exceptions in this paragraph are necessary, among other things to allow the implementation of
implementation of the Securities trading system, clearing, guarantee and settlement of Transactions
Exchange, as well as Securities depository, where related institutions need each other
information regarding Securities account. For this purpose, the Stock Exchange and Institutions
Clearing Guarantees and Clearing Guarantees need to be given the opportunity to obtain information regarding
Securities accounts with Custodians, including Custodian Banks.
In addition, for the purpose of maintaining a register of Securities holders and distribution of
rights relating to Securities, including dividends,

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The Securities Administration Bureau also needs to be given the opportunity to obtain information
regarding Securities accounts with Custodians, including Custodian Banks.
This provision is also needed so that Bapepam can carry out its supervisory function
in accordance with the powers specified in this Law.
Paragraph (2)
The provisions in this paragraph confirm that even though the Party referred to in
in paragraph (1) letter a to letter f can obtain information regarding
Securities accounts of Custodian customers or their affiliated parties do not mean that the information
may be given to other Parties freely. Information about
The said Securities account may only be given to other Parties solely in the
implementation of its function.
For example, the Securities Administration Bureau receives information regarding Securities accounts
customers from the Depository and Settlement Institution, then the Administrative Bureau
Securities forward it to the Issuer to determine the rightful shareholders
attend and vote at the General Meeting of Shareholders.
Paragraph (3)
The appointed official is an official who is authorized by the Chief of Police
of the Republic of Indonesia, the Attorney General, and the Chief Justice of the Supreme Court to obtain
information regarding Securities account.
Article 48
Paragraph (1)
Quite clear
Paragraph (2)
What is meant by "requirements and procedures for licensing" in this paragraph are:
provisions regarding, among others:
a. requirements for the provision of facilities;
b. expert requirements;
c. capital requirements; and
d. procedure for submitting a permit application.
Article 49
Paragraph (1)
Quite clear
Paragraph (2)
Quite clear

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Article 50
Paragraph (1)
Because debt securities are debt acknowledgments that are
unilaterally and the holders are widely dispersed, then to administer and represent
they as creditors, it is necessary to form a trusteeship institution. So that the Trustee
can represent the interests of the holders of the debt Securities, it is determined
Commercial Banks as Parties that can carry out trusteeship activities
because it has a wide network of business activities. However, in anticipation of
development of the Capital Market, it is possible for other Parties, apart from Commercial Banks, to
carry out activities as a Trustee based on a Government Regulation.
Paragraph (2)
Business activities as a Trustee are one of the activities of Commercial Banks
as stipulated in the laws and regulations in the banking sector.
Therefore, commercial banks no longer need a permit to carry out activities
as Trustee. However, to carry out these activities, Commercial Banks still
requires registration at Bapepam.
Paragraph (3)
What is meant by "requirements and procedures for registration of a Trustee" in
This paragraph is a provision regarding, among others:
a. expert requirements;
b. capital requirements; and
c. procedures for submitting a registration application.
Article 51
Paragraph (1)
The provisions of this paragraph are intended to avoid conflicts of interest
between the Trustee as the representative of the debt Securities holder and the Issuer's interest
where the Trustee has an Affiliate relationship. This is necessary so that the Trustee
can carry out its functions independently so as to protect
maximum interest of debt Securities holders.
Paragraph (2)
Since the signing of the trustee contract between the Issuer and the Trustee, the
The mandate has agreed and bound itself to represent Securities holders
debt, but the representation will be effective when the Securities are debt
allocated to investors. In this case, the Trustee is authorized
based on this Law to represent debt securities holders in
take legal actions related to the interests of Securities holders
the debt, including claiming the rights of debt Securities holders,
both inside and outside the court without requiring a special power of attorney from
the holder of the said debt Securities.

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Paragraph (3)
The provisions of this paragraph are intended to avoid conflicts of interest
between the Trustee as the representative of the debt Securities holder and the interests of the Trustee
Mandate as a creditor or debtor from the Issuer. This is necessary so that the Trustee
can carry out its functions independently so as to protect the interests of
maximum debt securities holders.
Paragraph (4)
What is meant by "use of the services of the Trustee" in this paragraph is the use of
Trustee services by the Issuer in the issuance of long-term debt securities,
like bonds.
Article 52
What is meant by "stipulations that must be stipulated by Bapepam" in this paragraph
are things that must be included in the trustee contract between the Issuer and
Trustee, among others regarding:
a. principal and interest debt and other benefits of the Issuer;
b. at maturity;
c. guarantee (if any);
d. payment agent; and
e. the duties and functions of the Trustee.
Article 53
The provisions in this Article entitle the holder of debt securities to:
demanding compensation from the Trustee who was negligent in carrying out his duties
resulting in a loss to the holder of the said debt Securities.

Article 54
The prohibition as referred to in this Article is intended to prevent
there is a conflict of interest of the Trustee as the representative of the debt Securities holder
with the interests of the Trustee as the guarantor who is actually obliged to fulfill
Issuer's obligations to debt Securities holders in the event of a default
by Issuer.
Article 55
Paragraph (1)
What is meant by " book entry settlement " in paragraph
This is the fulfillment of rights and obligations that arise as a result of the Transaction
Exchange which is executed by deducting Securities from one Securities account
and add the said Securities to another Securities account with the Custodian, which
in this case it can be done electronically.

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The transfer of rights to Securities occurs at the time of delivery of the Securities or at the time the Securities are referred
deducted from one Securities account and then added to the Securities account
another.
What is meant by "physical settlement" in this paragraph is the settlement of Transactions
Exchange which is carried out directly by each Broker-Dealer who conducts
transactions, based on the physical handover of the Securities.
What is meant by "other ways" in this paragraph are among others:
a. settlement of Exchange Transactions directly on the list of Securities holders without
through a Securities account at the Custodian;
b. settlement of Exchange Transactions internationally or through other countries;
c. settlement of Exchange Transactions electronically or in any other possible way
discovered and applied in the future according to developments
technology; and
d. settlement of other Exchange Transactions that must be carried out if there are
new laws and regulations.
Paragraph (2)
Every Exchange Transaction must be completed by the Parties conducting the Exchange Transaction
because it is a transaction that is interrelated from time to time. Transactions that occur
the previous transaction is the basis for the next transaction, so the cancellation of the Transaction
The previous Exchange will affect subsequent Exchange Transactions.
Therefore, the Clearing Guarantee Institution is required to guarantee the settlement of Transactions
Exchange by realizing the fulfillment of the rights and obligations of each Member
Stock Exchange conducting Exchange Transactions.
Paragraph (3)

Due to the activities of the Stock Exchange, Clearing Guarantee Institution, and
Storage and Settlement is a unity of interrelated activities
from transaction activities to transaction settlement, the three institutions
is required to ensure that these activities are carried out efficiently and safely. For
To guarantee the implementation of these activities, the three institutions are required to make a contract
written between them, including the determination of the time and stages of completion
transactions, the amount and method of fulfillment of the guarantee funds that must be fulfilled by the Member
Stock Exchange, and determination of transaction fees and transaction settlement.
Paragraph (4)
Quite clear
Paragraph (5)
Quite clear

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Article 56
Paragraph (1)
This provision is intended to ensure that account holders are
Depository and Settlement Institutions based on this Law are recognized as diakui
the owner of the Securities or the Party entitled to the Securities whose interests are represented by diwakili
Depository and Settlement Institution by registering the name of the Institution
The Depository and Settlement is in the Register of Issuers Securities holders.

Paragraph (2)
This provision is intended to ensure that based on this Law,
owner or Party entitled to Securities registered in the Securities account with the Institution
Depository and Settlement are account holders at the Custodian Bank
or Securities Company, even though the name recorded in the Securities account with the Institution
Depository and Settlement is the name of the Custodian Bank or Securities Company.
Custodian Banks or Securities Companies in this case represent the interests of shareholders
account at the said Custodian Bank or Securities Company.
Paragraph (3)
This provision is intended that based on this Act the entire owner
Mutual Fund Participation Units in the form of collective investment contracts are Parties that
owns or is entitled to Securities included in the said Mutual Fund portfolio.
The ownership is represented by the Custodian Bank by registering the name of the Bank
The custodian is in the register of Issuer Securities holders. Custodian Bank in
this is solely acting as a representative of the entire Participation Unit owner
The said Mutual Fund.
Paragraph (4)
The confirmation as referred to in this paragraph can be in the form of a written statement or
other forms that explain the number of Securities recorded in the register of holders
Issuer Securities on behalf of the Depository and Settlement Institution that represents
the interest of the account holder or the Custodian Bank representing the interests of the Unit
Mutual Fund participation is in the form of a collective investment contract.
Paragraph (5)
The provisions in this paragraph require the Depository and Settlement Institution, Bank
Custodian, or Securities Company to provide proof of registration as a
confirmation to the account holder from the Depository and Settlement Institution,
Custodian Bank, or Securities Company in question.
Article 57
In order to improve the efficiency of Securities transaction settlement, Securities in Custody
The collective is considered commensurate.
In this case, Securities are considered to have the same nature as money, for example if:
someone wants to withdraw money from his account at the bank, then the person concerned
cannot demand or require the bank so that the disbursed money
is physical money previously deposited by the customer to the bank.

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Thus, the Securities account holder cannot claim the ownership of a Securities
based on certain numbers, series, or characteristics of the Securities. Account holder only
may claim based on the amount, type, and class of Securities.
Article 58
Paragraph (1)
Quite clear
Paragraph (2)
Even though the Depository and Settlement Institution or Custodian Bank is registered in the
List of Issuer Securities holders, account holders with Depository Institutions
and Settlement or the Custodian Bank may instruct the Depository Institution
and Settlement or Custodian Bank so that his name or other Party appointed by
concerned shall be recorded in the register of the Issuer's Securities holders. Institution
Depository and Settlement or Custodian Bank receiving the instruction
obliged to do so by ordering the Issuer to register the name of the Party
said party or other party appointed by the person concerned in the register book
Issuer Securities holders. The issuer who receives the instruction is obliged to carry it out
in accordance with the provisions referred to in this paragraph.
Paragraph (3)
The provisions of this paragraph are intended to ensure that the Securities included in the
Collective Custody is good Securities in the sense of being free from problems, including
from the lawsuit of any Party that claims to be entitled to the said Securities. This matter
required so that the Securities entered in Collective Custody are truly ready Securities
to be traded. Securities that are lost or destroyed are considered problematic Securities,
so it cannot be included in Collective Custody. However, it is possible
occurs that the lost or destroyed Securities are owned by the Party and not
transferred to another Party and that Party can prove that the Securities
is own property. In this case, the Issuer may accept the registration of the said Securities
into Collective Custody and take over responsibility for record keeping
Securities referred to in Collective Custody.
Paragraph (4)
The collateralized securities are placed in a confiscation based on a court order,
or confiscated for the purpose of examining a criminal case are considered securities that do not
free to trade. On that basis, the Securities cannot be included in the
Collective Custody under the provisions of this paragraph.
Article 59
Paragraph (1)
Because the funds and or Securities in the Securities Account at the Depository Institution
and Settlement is the property of the account holder, the account holder who
concerned may withdraw the said funds and or Securities at any time based on the
the provisions of this paragraph.

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Paragraph (2)
By blocking, freezing, or guaranteeing a Securities account, it means that
funds and or Securities contained in the Securities account cannot be withdrawn or
mutated. On that basis, if there is a request to withdraw or transfer
funds and/or Securities in the said Securities account, Depository Institution and/or
Settlement may reject the request.
Paragraph (3)
Quite clear
Article 60
Paragraph (1)
Because the account holder is the Party that owns or is entitled to the account
Securities, the Party automatically has voting rights over the Securities
recorded in the relevant Securities account. For this reason, based on the provisions of paragraph
it is confirmed that the account holder is the party entitled to attend and
give voting rights in the General Meeting of Securities Holders even though the Securities are
registered in the name of the Depository and Settlement Institution or the Custodian Bank in the
List of Issuer Securities holders. Functions of the Depository and Settlement Institution
and the Custodian Bank in this case is the Custodian representing the interests of
account holder.
Paragraph (2)
The provisions in this paragraph are intended to ensure that the account holder's rights
in the form of dividends, interest, bonus shares, or other rights can be immediately received by the holder
the account in question. This is necessary to avoid possible losses
incurred by the account holder as a result of the delay in the transfer of rights
meant.
Article 61
The provisions in this Article are intended to confirm that the account holder
at any time can lend or guarantee the Securities recorded in the account
Securities without removing such Securities from Collective Custody. This is necessary so that
the borrowing or guarantee of Securities is carried out safely and efficiently. Borrowing
or Securities guarantee is carried out with written notification by the holder
account to the Depository and Settlement Institution or the Custodian Bank that
explain the amount, type of Securities lent or pledged, the party receiving
loan or guarantee, and the terms of the loan or guarantee.
Article 62
What is meant by "stipulations regarding Collective Custody" in this Article are
provisions regarding matters that must be included in the articles of association of the Issuer,
among others :
a. Securities equivalence;
b. obligation to issue certificates or confirmations to the Institution
Depository and Settlement or Custodian Bank;

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c. voting rights, dividend rights, and other rights owned by account holders
Securities in collective custody; and
d. transfer of ownership in Collective Custody.
Provisions regarding Collective Custody are required so that Securities holders, especially holders of
shares, clearly knows and can exercise their rights to the listed Securities
in Collective Custody.
Article 63
Quite clear
Article 64
Paragraph (1)
letter a
Accountant is an accountant who has obtained permission from the Minister and is registered with Bapepam.
letter b
Legal Consultants are legal experts who provide legal opinions to other parties
and registered with Bapepam.
letter c
Appraiser is a party who provides an assessment of the company's assets and is registered in
Bapepam.
letter d
A notary is a public official who is authorized to make an authentic deed and is registered with Bapepam.
letter e
This provision is intended to accommodate the possibility of the need for other professional services
to provide opinions or assessments in accordance with the development of the Capital Market in
future and registered with Bapepam.
Paragraph (2)
Because the opinion and or assessment of the Capital Market Supporting Professionals is very important for
investors in making their investment decisions, the professional activities in the market
Capital needs to be monitored by requiring it to register with Bapepam.
Paragraph (3)
What is meant by "requirements and procedures for registration" in this paragraph are:
provisions regarding, among others:
a. facilities and infrastructure requirements;
b. educational qualification requirements;
c. requirements for professional licenses for professions that require permission from the competent authority;
and
d. Procedure for submitting a registration application

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Article 65
Paragraph (1)
Because a professional license is one of the requirements for registration at Bapepam, so
if the professional license is revoked, the registration at Bapepam automatically becomes
cancel.
Paragraph (2)
Quite clear
Paragraph (3)
In certain cases, the Capital Market Supporting Profession may provide more than one type of
services. Likewise, one type of service can be provided which is repetitive
based on periodic assignments. Furthermore, the provision of the said service can be
granted to one or more Parties. In the case of revocation of registration related to
by providing one type of service to a certain Party or providing services to
one period to a certain Party, Bapepam may conduct an examination of the
other services or services provided for other periods, either for that Party or for
The other party.
What is meant by "other services" in this paragraph are services that are not
the cause of the cancellation of registration or the revocation of the relevant professional license
as referred to in paragraph (2). Examination of the other services referred to is required
in order to obtain certainty about the impacts that may arise as a result of
of the cancellation.
Paragraph (4)
Quite clear
Article 66
The code of ethics and professional standards is a standard for meeting the minimum quality of services
given to its customers, and is an obligation for every Profession
Capital Market Supporters to comply. However, in terms of codes of ethics and standards
profession is contrary to this Law and its implementing regulations,
Capital Market Supporting Professionals must comply with the provisions stipulated in the Law
this law and or its implementing regulations. It is important to protect
the interests of investors.
Article 67
This provision is intended so that the opinion or assessment given by the Profession
Capital Market Support is carried out professionally and free from the influence of Parties
who assigns tasks and uses the services of the Capital Market Supporting Professionals
and or its affiliates so that the opinion or assessment given is objective and fair.

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Article 68
Provisions regarding the obligation to report violations in the long term
3 (three) days is intended so that Bapepam can find out about this as early as possible
possible and can immediately take the necessary actions to reduce or
prevent the possibility of greater losses for the investor community.
Confidential notices to Bapepam in this Article are:
Confidential delivery of information about the violation committed
to the provisions of this Law and or its implementing regulations or
things that can endanger the financial condition of the said institution or
the interests of its customers. This notification must be submitted to
Bapepam in writing.
Article 69
Paragraph (1)
What is meant by “generally accepted accounting principles” in this paragraph are
Financial Accounting Standards set by the Indonesian Institute of Accountants and practices
other accounting generally applicable in the Capital Market.
Paragraph (2)
Although the arrangement of certain matters has been regulated in the Financial Accounting Standards
as referred to in the explanation of paragraph (1), but if it does not include
things that are needed in the Capital Market, such as in order to fulfill the principle of openness,
Bapepam may stipulate provisions regarding this matter specifically for
protect the public interest.
Article 70
Paragraph (1)
Public Offering is one way to raise funds
Public. For this reason, the interests of the community who will invest their funds in
Effects need protection. Therefore, any Party that intends to
raise funds through a Public Offering must first submit
The Registration Statement to Bapepam and the Public Offering can only be
made after the said Registration Statement is effective.
Paragraph (2)
Exceptions to the implementation of the provisions as referred to in paragraph (1) are required
considering the guidance, regulation, and supervision of Securities referred to in letter a,
letter b, and letter c of this paragraph are implemented by other agencies. Special for offers
Securities issued or guaranteed by the Government of Indonesia, the provisions of paragraph (1) also
does not apply considering the Government as the Party that issues or guarantees
The securities in question have the ability to meet all obligations in the issuance
The effect. Meanwhile, exceptions to other Securities stipulated by Bapepam
intended to anticipate the possibility of issuance of Securities which
for one reason or another must be excluded from the obligations referred to
in paragraph (1).

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Article 71
With this provision, investors have the opportunity to understand the contents of the Prospectus as follows:
basis for making investment decisions.
Article 72
Paragraph (1)
Quite clear
Paragraph (2)
What is meant by "alone or collectively" in this paragraph are:
that in the event that there is more than one Managing Underwriter, investors may
claim compensation from one or more Managing Underwriters in the event that
losses suffered by investors due to the negligence of the Managing Underwriters
meant.
Paragraph (3)
Quite clear
Article 73
To protect the interests of company shareholders who have complied with
requirements as a Public Company, the company concerned must
submit a Registration Statement.
Article 74
Paragraph (1)
This provision is intended to provide the Issuer with certainty that in the case of a Statement of
The registration that he submitted to Bapepam was complete and met the requirements
the stipulated requirements and procedures, if Bapepam does not do something,
The Registration Statement becomes effective by itself on the 45th day
(forty five).
Paragraph (2)
Quite clear
Paragraph (3)
In the event that Bapepam requests changes and or additional information from the Issuer or
Public Company, the time for the effective registration of the Registration Statement is calculated
from the date of receipt of the said additional information or changes.
Paragraph (4)
It is possible that the Registration Statement submitted to Bapepam
is not complete and does not meet the requirements so that the effectiveness of the Statement
Registration will exceed a period of 45 (forty five) days.

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In this case, Bapepam may request changes and or additional information to:
Issuer or Public Company concerned.
A new Registration Statement can be declared effective if:
a. changes and or additional information requested by Bapepam has been
fulfilled; and
b. the changes and or additional information referred to have met the requirements.
Article 75
Paragraph (1)
Quite clear
Paragraph (2)
Bapepam does not assess the quality of the offered Securities. Decision
to make an investment is entirely on the investor.
Article 76
The plan to list Securities on the Stock Exchange is one of the important things that
the basis for consideration of the decision to invest by investors. Therefore
Therefore, if the promise cannot be fulfilled, the Public Offering will be canceled
by law and the Issuer and the Underwriter are required to return the order money
Effect on the customer.
Article 77
What is meant by "requirements and procedures for submitting a Registration Statement"
in this Article are provisions regarding, among others:
a. requirements regarding the types of documents included in the Registration Statement;
b. requirements that must be met by the Party conducting the Public Offering;
and
c. procedures for submitting Registration Statements.
Article 78
Paragraph (1)
Prospectus is one of the main documents in the framework of a Public Offering.
Therefore, the information contained in it must contain things that
really describes the condition of the Issuer concerned so that the information
or information can be used as a basis for consideration to make decisions
the investment. If the information presented is not true about a material fact,
or does not disclose correct information about material facts, it is
This can result in investors making inappropriate investment decisions.

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Paragraph (2)
This provision is intended to prevent Parties from using
incorrect information by stating that Bapepam has provided
approval, permit, endorsement, research, or evaluation of various aspects of excellence
a Securities with the intention of influencing the public to buy Securities that
offered.
Paragraph (3)
What is meant by "stipulations regarding the Prospectus" in this paragraph, among others:
regarding the form and content of the Prospectus.
The prospectus shall at least contain:
a. a description of the Public Offering;
b. the purpose and use of the Public Offering funds;
c. analysis and discussion of activities and finances;
d. business risk;
e. financial data;
f. information from a legal point of view;
g. information regarding Securities purchase orders; and
h. information on the articles of association.
Article 79
Paragraph (1)
The provisions in this paragraph are intended so that the public can obtain information or
actual information about the Issuer that is needed as a basis for consideration
to make investment decisions.
Paragraph (2)
What is meant by provisions concerning "requirements for announcement" in this paragraph,
including regarding:
a. Issuer's name;
b. types of Securities offered;
c. type of industry of the Issuer;
d. the name and address of the sales agent (if any); and
e. name and address of the Underwriter (if any).
Article 80
Paragraph (1)
Quite clear

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Paragraph (2)
The responsibility of each Capital Market Supporting Profession is limited to opinions
or the information given by him in the framework of the Registration Statement. Therefore
Therefore, investors can only claim compensation for losses that arise as a result of
opinion or assessment given by the Capital Market Supporting Profession.
Paragraph (3)
The Managing Underwriter or Capital Market Supporting Professionals cannot be prosecuted
compensation for losses suffered by investors if the Managing Underwriter
The Securities or Capital Market Supporting Profession has assessed or
give his opinion in a professional manner, in the sense that his work has been carried out
in accordance with the examination norms, principles and code of ethics of each profession,
and his opinion or judgment has been given independently. Other than that,
The Managing Underwriter or Capital Market Supporting Profession has done
concrete steps needed to ensure the truth of the statement
or information disclosed in the Registration Statement.
Paragraph (4)
Quite clear
Article 81
Paragraph (1)
Quite clear
Paragraph (2)
Quite clear
Article 82
Paragraph (1)
What is meant by "pre-emptive right" in this paragraph is the right to
attached to shares that provide opportunities for shareholders who
concerned to purchase new Securities before they are offered to other Parties.
Paragraph (2)
To protect the interests of independent shareholders who are generally
minority shareholders from the possibility of unfair pricing
on transactions carried out by the Issuer due to a conflict of interest
between directors, commissioners, or major shareholders, Bapepam can
requires the Issuer to first obtain majority approval from the holder
independent stock.
Paragraph (3)
What is meant by “requirements and procedures for the issuance of the right to subscribe for securities”
in the past and transactions that have a conflict of interest” in this paragraph are
provisions regarding, among others:

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a. the form and content of the Registration Statement for the issuance of the right to subscribe to Securities
first;
b. documents that must be submitted in the Registration Statement
such;
c. the form and content of the Prospectus for the issuance of the right to subscribe for securities
first; and
d. procedures for determining the quorum and votes in the General Meeting of Shareholders
Shares to obtain independent shareholder approval.
Article 83
What is meant by "tender offer" in this Article is an offer through the media
mass to obtain equity securities by way of purchase or exchange
with other effects.
What is meant by "Equity Securities" in the explanation of this Article are shares or
Securities that can be exchanged for shares or Securities containing the right to obtain
stock.
Considering that a tender offer involves an offer to purchase Securities from the holder
public shares which can result in a significant reduction in the number of shareholders
and there is a possibility that the company concerned no longer meets the requirements
as a Public Company, the public shareholder needs to obtain protection.
The protection for public shareholders is carried out especially so that transactions
tender offer is conducted fairly.
The fairness of the above, especially in terms of obtaining correct information about the plan
the proposed tender offer, including pricing, procedures for selling Securities,
as well as certain requirements that may result in the cancellation of the said tender offer.
Article 84
The provisions referred to in this Article are intended to protect the interests of investors
from practices that are detrimental to investors in merger, consolidation, or
takeovers, including investments involving Issuers or Public Companies,
by requiring the Issuer or Public Company to comply with the Principles
Disclosure and reporting set by Bapepam. Implementation of this provision
carried out without prejudice to the provisions of Law Number 1 of 1995 concerning Companies
Limited.
Article 85
What is meant by “report” in this Article are periodic reports and incidental reports laporan
other.

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Article 86
Paragraph (1)
Because information about Issuers or Public Companies has a role
important for investors, in addition to the effectiveness of supervision by Bapepam,
obligation to submit and announce reports for Issuers or Companies
The public is also intended to provide information about the running of the company's business
always available to the public.
letter a
Periodic information about the business activities and financial condition of the Issuer or Company
The public is needed by investors as the basis for making investment decisions on
Effect. Therefore, Issuers or Public Companies are required to submit reports
periodically for the end of a certain period to Bapepam and the report
open to the public.
letter b
In addition to the addition of the periodic report as referred to in letter a above,
in the event of a material event, the Issuer or Public Company must
submit a report to Bapepam and announce it to the public
no later than the end of the 2nd (second) working day after the occurrence of the
the nature of the material.
Paragraph (2)
The provisions in this paragraph are intended to give authority to Bapepam
to establish certain requirements under which the Issuer or Public Company that
The Registration Statement has become effective, it is not required to submit a report
as referred to in paragraph (1). The requirements in question, among others, are in the form of:
determination of the maximum number of shareholders and paid-up capital of a Public Company
who are not required to submit the report as referred to in paragraph
(1). This provision does not mean that a Public Company whose Registration Statement
has become effective, it is not required to submit the report as referred to in
paragraph (1) even though it does not meet the requirements as a Public Company.
Article 87
Paragraph (1)
Because of his important position, the director or commissioner of the Issuer or
Public Companies are required to disclose changes in their securities ownership.
Paragraph (2)
Quite clear
Paragraph (3)
The reporting period of ownership or change of ownership as referred to
in this paragraph is calculated from the transaction.

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Article 88
What is meant by "requirements and procedures for submitting reports to be regulated"
by Bapepam” in this Article, among others:
a. the form and content of the report;
b. Parties who can sign the report;
c. deadline for submitting reports; and
d. procedures for submitting reports.
Article 89
Paragraph (1)
What is meant by "information" in this paragraph are, among others, Registration Statements
including Prospectus, application for business license, individual license, approval and
professional registration, periodic reports, and other reports.
Paragraph (2)
What is meant by "exception" in this paragraph is, among others, in the form of a secret formula
products or services produced by the company.
Article 90
What is meant by “Securities trading activities” in this Article are activities
which includes the activities of offering, buying, and or selling Securities that occur
in the context of a Public Offering, or occurring on the Stock Exchange, as well as offering activities,
purchase and or sale of Securities outside the Stock Exchange for the Issuer's or Company's Securities
Public.
Article 91
The investor community is in dire need of information about trading activities,
market conditions, or the price of Securities on the Stock Exchange as reflected in the strength of supply
sale and purchase of Securities as a basis for making investment decisions in
Effect. In this regard, this provision prohibits any actions that may
create a false picture of trading activities, market conditions, or
Securities prices, including:
a. perform Securities transactions that do not result in a change of ownership; or
b. make a sale offer or an offer to buy Securities at a certain price, at
where that Party has also conspired with another Party that committed
offer to buy or sell the same Securities at a lower price
more the same.
Article 92
This provision prohibits the conduct of a series of Securities transactions by one Party or
several Parties who conspired so as to create a false price of Securities in
Stock Exchange because it is not based on the strength of the demand for buying or selling Securities
actually with the intention of benefiting oneself or another party.

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Article 93
Quite clear
Article 94
What is meant by “certain actions” in this Article, among others concerns:

a. stabilization of the price of Securities in the context of a Public Offering to the extent that
included in the Prospectus; and
b. sale and purchase of Securities by Securities Companies as market makers
for his own account continuously to maintain liquidity
Securities trading.
Article 95
What is meant by “insiders” in this Article are:
a. commissioners, directors, or employees of Issuers or Public Companies;
b. major shareholder of the Issuer or Public Company;
c. an individual who because of his position or profession or because
business relationship with the Issuer or Public Company allows
the person obtains inside information; or
d. A Party which within the last 6 (six) months is no longer a Party
as referred to in letter a, letter b, or letter c above.
What is meant by "position" in the explanation of this letter c is the position at
government agency, institution, or agency.
What is meant by "business relationship" in the explanation of letter c is a relationship between
work or partnership in business activities, including customer, supplier,
contractors, customers and creditors.
What is meant by "inside information" in the explanation of letter c is
Material information held by insiders that is not yet publicly available.
For example, the explanation of letter d is that Mr. A quits as a director on
January 1st. However Mr A was still considered an insider until
June 30 of the year concerned.
letter a
Prohibition for insiders to make purchases or sales of Issuer's Securities
or Public Company concerned is based on the consideration that
the position of insiders should prioritize the interests of the Issuer, the Company
The public, or shareholders as a whole are included in it not to
use inside information for their own benefit or for other parties.
letter b
In addition to the prohibition in letter a, insiders of an Issuer or
Public Companies that conduct transactions with other companies are also subject to
prohibition to conduct transactions on the Securities of the said other company, even though
the person concerned is not an insider of the other company.

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Explanation of RI Law No. 8/1995

This is because information about other companies is usually obtained because:
position with the Issuer or Public Company that conducts transactions with
the other company.
What is meant by "transactions" in this letter are all forms of transactions that
occurs between the Issuer or Public Company and other companies, including transactions
on the securities of other companies that are carried out by the Issuer or Public Company
concerned.
Article 96
Insiders as referred to in Article 95 are prohibited from influencing other Parties
to make purchases and or sales of Securities from Issuers or Companies
The public concerned, even though the insider does not provide information
insiders to the other Party, as this may encourage the other Party to commit
purchase or sale of Securities based on inside information.
In addition, insiders are prohibited from providing inside information to other Parties who
suspected of using the information to make purchases and or sales
Effect. Thus, insiders have an obligation to be careful in
disseminate information so that the information is not misused by
receive such information to make a purchase or sale of Securities.
Article 97
Paragraph (1)
Any Party who knowingly tries to unlawfully obtain
and ultimately obtain inside information about the Issuer or Company
The public, are also subject to the same restrictions as those applied to insiders
as referred to in Article 95 and Article 96. That is, they are prohibited from
conduct transactions on the relevant Securities, and are prohibited from influencing the Parties
others to purchase and or sell the said Securities or provide
such inside information to other Parties who are reasonably suspected of using
such information to purchase and sell Securities.
Examples of unlawful acts include:
a. trying to obtain inside information by stealing;
b. trying to get inside information by persuading people
in; and
c. attempting to obtain inside information by force or
threat.
Paragraph (2)
For example, if someone who is not an insider requests information from
Issuer or Public Company and then obtain it easily without
restrictions, the person is not subject to restrictions that apply to insiders.

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Explanation of RI Law No. 8/1995

However, if the provision of inside information is accompanied by a requirement to
confidentiality or other conditions that are restrictive, against the Party that
obtain inside information, the prohibition as referred to in
Article 95 and Article 96.
Article 98
The provisions of this Article provide the possibility for Securities Companies to conduct transactions
Securities solely for the benefit of its customers due to one of the Company's activities
Securities are Securities Brokers who are obliged to serve their customers by
the best. In carrying out the said Securities transaction, the Securities Company does not
provide any recommendations to its customers. When the ban
in this Article is violated, the Securities Company violates the insider provisions
as referred to in Article 95 and Article 96.
Article 99
Certain Securities Transactions that are not included in the Securities transactions referred to
in Articles 95 and 96 are stipulated by Bapepam regulations. As an example,
Certain Securities transactions as referred to in this Article are Securities transactions
between insiders.
Article 100
Paragraph (1)
As a consequence of carrying out its function as a supervisory body for
activities in the Capital Market, Bapepam needs to be given the authority to carry out
examination of any Party suspected of having, is currently, or attempting to commit
or order, participate in, persuade, or assist in committing a violation of
this law and or its implementing regulations. With this authority,
Bapepam may collect data, information, and or other necessary information
as evidence of a violation of this Law and/or regulations
implementation.
Paragraph (2)
For the purpose of examination, Bapepam may ask for information and/or confirmation,
and examine the records, books, and or other documents of the alleged Party
commits or is involved in a violation of this Law and or
implementing regulations or other parties if deemed necessary.
In addition, Bapepam may order the discontinuation of an activity that
constitutes a violation of this Law and or its implementing regulations,
such as ordering Issuers or Public Companies to stop loading
advertisements in the mass media that contain misleading information. Otherwise,
Bapepam may order certain activities to be carried out if deemed necessary
necessary to reduce the losses incurred and or prevent further losses,
such as requiring Issuers or Public Companies to correct the advertisements that are published
in the mass media.

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Explanation of RI Law No. 8/1995

Bapepam can also set conditions and or allow settlements
certain losses arising from activities that constitute a violation
to this Law and or its implementing regulations. The solution in question
among others in the form of a civil settlement between the Parties.
Data, information, materials, and or other information collected in order to
Bapepam can use this inspection to determine sanctions
administrative. If Bapepam decides to continue the investigation
carried out to the investigation stage, the data, information, materials, and or other information
can be used as initial evidence in the investigation stage.
This does not mean that an investigative action must be preceded by an examination.
That is, if Bapepam is of the opinion that an activity carried out
constitutes a violation of this Law and or its implementing regulations
and result in losses to the interests of the Capital Market and or endanger the
the interests of investors and the public, then investigative action can be started.
Paragraph (3)
What is meant by “examination procedures” in this paragraph are provisions regarding,
among others :
a. procedures for preparing the audit program;
b. procedures for conducting inspections; and
c. procedures for reporting inspection results.
Paragraph (4)
What is meant by “Bapepam employees” as referred to in this Article
is a Civil Servant within Bapepam.
Article 101
Paragraph (1)
Violations that occur in the Capital Market are very diverse in terms of types, modes,
operandi, or the loss it may cause. Therefore, Bapepam was given
the authority to consider the consequences of the violation and
the authority to forward it to the investigation stage based on considerations
meant.
Not all violations of this Law and or its implementing regulations
in the Capital Market sector, it must proceed to the investigation stage because this is precisely the case
may hinder the offering and or trading of Securities as a whole.
If the resulting loss endangers the Capital Market system or interests,
investors and or the public, or if no settlement is reached for losses
that have arisen, Bapepam can initiate investigative actions in the context of prosecution
criminal act.
The action to initiate an investigation as referred to in this paragraph by the Investigator
Civil Servants (PPNS) of Bapepam is carried out after obtaining a determination from
Head of Bapepam.

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Paragraph (2)
An investigation in the Capital Market sector is a series of actions by investigators to seek
and gather the necessary evidence so that it can shed light on
criminal acts in the Capital Market sector that occur, find suspects, and
know the extent of the loss. Capital Market Investigator
are certain Civil Servant officials within Bapepam who are appointed
by the Minister of Justice in accordance with the provisions of the legislation
apply.
Paragraph (3)
letter a
Quite clear
letter b
Quite clear
letter c
Quite clear
letter d
Quite clear
letter e
Quite clear
letter f
Quite clear
letter g
Quite clear
letter h
Quite clear
Letter i
Actions to start and stop an investigation as referred to in
this letter by the Civil Servant Investigator (PPNS) of Bapepam is carried out after
obtain a determination from the Chairman of Bapepam.
Paragraph (4)
The provisions in this paragraph emphasize that in order to obtain information regarding
the suspect's financial condition at the bank in connection with the investigation, Bapepam must
first obtain permission from the Minister. If the investigation is not related
with the suspect's financial condition at the bank, Bapepam does not need permission from
Minister.
Paragraph (5)
Quite clear

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Explanation of RI Law No. 8/1995

Paragraph (6)
What is meant by "other law enforcement officers" in this paragraph include, among others,
law enforcement agencies from the Indonesian National Police, the Directorate General of Immigration,
Ministry of Justice, and the Attorney General's Office.
Verse 7
Quite clear
Article 102
Paragraph (1)
In applying the administrative sanctions as referred to in this paragraph, Bapepam
it is necessary to pay attention to the aspect of guidance to the said Party.
The parties referred to in this paragraph are Issuers, Public Companies, Stock Exchanges,
Clearing Guarantee Institution, Depository and Settlement Institution, Mutual Funds,
Securities Company, Investment Advisor, Underwriter Representative, Broker Representative
Securities Dealer, Investment Manager Representative, Securities Administration Bureau, Custodian, Trustee,
Capital Market Supporting Professionals, and other Parties that have obtained permits, approvals,
or registration from Bapepam. The provisions in this paragraph also apply to directors,
commissioners, and each Party that owns at least 5% (five percent)
the shares of the Issuer or Public Company as referred to in Article 87 of the Law
this law.
Paragraph (2)
letter a
Quite clear
letter b
Quite clear
letter c
Quite clear
letter d
Quite clear
letter e
Quite clear
letter f
Quite clear
letter g
Quite clear
Paragraph (3)
Quite clear

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Explanation of RI Law No. 8/1995

Article 103
Paragraph (1)
Quite clear
Paragraph (2)
Quite clear
Article 104
Quite clear
Article 105
Quite clear
Article 106
Paragraph (1)
This paragraph confirms that every Public Offering must be carried out in accordance with
the provisions stipulated in Article 70 paragraph (1). In accordance with the provisions of Article 1 number
6, Issuer is defined as a Party conducting a Public Offering so that it is obligated to
submit a Registration Statement to Bapepam and a Registration Statement
it has become effective. Therefore, any Party that intends to carry out
The Public Offering must comply with the provisions of Article 70 paragraph (1) and if violated
shall be punished with a penalty under the provisions of this paragraph.
Paragraph (2)
What is meant by “Party” in this paragraph is a Public Company as referred to in paragraph (1)
referred to in Article 1 number 22.
Article 107
Quite clear
Article 108
Quite clear
Article 109
Quite clear
Article 110
Paragraph (1)
Quite clear

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Explanation of RI Law No. 8/1995

Paragraph (2)
Quite clear
Article 111
Quite clear
Article 112
Quite clear
Article 113
Quite clear
Article 114
letter a
Quite clear
letter b
Quite clear
letter c
Quite clear
letter d
Quite clear
Article 115
Quite clear
Article 116
Quite clear
SUPPLEMENT TO STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 3608.

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