Advanced Search

The Regulation Of Bank Indonesia No. 14/6/pbi/2012 Year 2012

Original Language Title: Peraturan Bank Indonesia Nomor 14/18/PBI/2012 Tahun 2012

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.

The text is not in the original format.
Back

image
SHEET COUNTRY
REPUBLIC OF INDONESIA
No. 261, 2012 (Explanation in Additional State Sheet of the Republic of Indonesia Number 5369)


BANK INDONESIA RULES
NUMBER 14/18 /PBI/2012
ABOUT
THE GENERAL BANK MINIMUM CAPITAL PROVISION OBLIGATION

WITH THE GRACE OF THE ALMIGHTY GOD

GOVERNOR OF THE BANK OF INDONESIA,

Weigh: a.  that in order to create a healthy and able banking system and to compete nationally and internationally, the structure, requirements, and calculation of the Bank's capital adequate need to be adjusted to the applicable international standards;
B.  that in accordance with applicable international standards, the calculation of capital adequentions needs to be adjusted so that not only is able to absorb the potential losses arising from credit risk, market risk and operational risk, but also from other risks Materials such as credit concentration risk, interest rate risk in banking book, and liquidity risk;
c. that in accordance with the development of the Bank's risk and risk complexity and the application of risk-based oversight, then the Bank must conduct an assessment of the risk profile and the capital adequate rate in anticipation of potential losses. of such risk exposure and continue to meet the minimum capital provision obligations that are required in accordance with the applicable provisions;
D.  that in line with the dynamics of the economy and the global financial system and in order to maintain the stability of the national financial system, the allocation of a number of branch office funds from banks based abroad to be placed into place. in certain financial assets;
e.  that based on the terms of the letter a, the letter b, the letter c, and the letter d, need to reorganize the Regulation of the Bank of Indonesia on the Liability of the Public Bank's minimum capital;

Remembering: 1.   Law No. 7 of 1992 on Banking (State of the Republic of Indonesia Year 1992 Number 31, Additional Gazette of the Republic of Indonesia No. 3472) as amended by Law No. 10 Year 1998 (State Sheet) Republic Of Indonesia In 1998 Number 182, Addition Of State Sheet Republic Of Indonesia Number 3790);
2. Act No. 23 of 1999 concerning Bank Indonesia (State of the Republic of Indonesia 1999 No. 66, Additional Gazette Republic of Indonesia Number 3843) as amended several times last by Act No. 6 2009 on Establishing Regulatory Government Ordinance Number 2 Year 2008 on Second Amendment to the Law No. 23 Year 1999 on Bank Indonesia into Act (State Gazette of the Republic of Indonesia Year 2009 Number 7, Additional Gazette of the Republic of Indonesia Number 4962);

DECIDED:

Establish: Indonesia 's bank regulations on the liability of the General Bank' s minimum capital provision.

BAB I
UMUM CONDITIONS
Section 1
In Regulation of the Bank of Indonesia this is referred to by:
1. Bank is the General Bank as referred to in the Law Number 7 of 1992 on Banking as amended by Law No. 10 of 1998, including the branch offices of a bank based abroad, which carrying out conventional business activities.
2. Directors:
a. For a bank of the form of a Limited Perseroan legal entity is the board of directors as referred to in the Act of Limited Perseroan;
B. for a Bank-shaped legal entity of the Regional Enterprise is the board of directors as referred to in the Law on Regional Enterprises;
c. for the Bank-shaped legal entity Koperative is the administrator as referred to in the Act on Percofeelings;
D. For the branch office of a overseas bank is a branch office leader and one-level official under the branch office leader.
3. Board of Commissioners:
a. for a Limited Perseroan legal body-shaped bank is the board of commissioners as referred to in the Act on Limited Perseroan;
B. For a bank in the form of a Regional Enterprise legal entity is a supervisor as intended in an Act on Regional Enterprises;
c. for the Bank shaped legal entity Koperative is the supervisor as referred to in the Act on Percofeelings;
D. for the branch office of the Bank that is located abroad is the designated party to carry out the supervising function.
4. Child companies are legal entities or companies owned and/or controlled by the Bank directly or indirectly, both inside and abroad, which conducts business activities in the financial field, which consists of:
a. The Subsidiary Company (subsidiary Company) is a Child Company with a Bank entitlement of over 50% (fifty percent);
B. Participation Company (Participation Company) is a Children's Company with a Bank entitlement of 50% (fifty percent) or less, but the Bank has the control of the company;
C. The company with a Bank entitlement is more than 20% (twenty percent) up to 50% (fifty percent) that meets the requirement:
1) the ownership of the Bank and the other parties on the Children ' s Company are each equally great; and
2) each owner performs the Controlling together against the Children ' s Company;
D. Other entities based on the applicable financial accounting standards are to be consolidated, but do not include insurance companies and companies owned in the framework of credit restructuring.
5. Controlling is control as set out in the provisions of the Bank of Indonesia regarding the transparency and publication of the Bank report.
6. Capital Equivalency Maintained Assets (CEMA) is the allocation of branch offices of overseas-based banks that are required to be placed on financial assets in certain amounts and requirements.
7. Internal Capital Adequacy Assessment Process further abbreviated to ICAAP is the process by which the Bank is due to establish the adequacy of capital in accordance with the Bank's risk profile, and the determination of strategies to maintain the rate of the application.
8. Supervisory Review and Evaluation Process (SREP), which is later abbreviated as SREP, is a repaid process by the Bank of Indonesia for the ICAAP Bank.
9. The credit risk is at risk due to the failure of the debtor and/or other parties in fulfilling the obligations to the Bank.
10. Market risk is at risk of the balance sheet position and administrative accounts including derivative transactions, as a result of the overall change of market conditions, including the risk of a option price change.
11. Operational Risk is the risk due to inadequacy and/or malfunction of internal processes, human error, system failure, and/or the external events affecting the Bank's operational operations.
12. Trading Book is the entire financial instrument position in its balance sheet and administrative account including the Bank-owned derivative transaction for:
a.   destination is traded and can be transferable freely or can be protected in its entirety, either from the transaction for its own sake (proprietary positions), at the request of the nasabah and the intercession activities (brokering), and in the framework of market making (market making), which includes:
1) a position that is owned for resale in the short term;
2) the position it has for the purpose of acquiring the short-term gain in actual and/or potential of the price movement (price movement); or
3) a position owned for the purpose of maintaining an arbitration advantage (locking in arbitrage profits);
B.   the purpose of a value hedge against other positions in Trading Book.
13. Banking Book is all the other positions not included in Trading Book.

Section 2
(1) The bank is required to provide minimum capital according to the risk profile.
(2) The minimum capital provision as referred to in paragraph (1) is calculated using the Minimum Capital Provision Obligation Ratio (KPMM).
(3) The minimum capital supply as referred to in paragraph (1) is set to the lowest as follows:
a.   8% (eight percent) of Weighted Assets According To Risk (ATMR) for the Bank with a ranking risk profile of 1 (one);
B. 9% (nine percent) up to less than 10% (ten percent) of ATMR for the Bank with risk profile ranking 2 (two);
C. 10% (ten percent) up to less than 11% (eleven percent) of ATMR for Bank with risk profile ranking 3 (three);
D. 11% (eleven percent) up to 14% (fourteen percent) of ATMR for the Bank with a risk profile of rank 4 (four) or rank 5 (five).
(4) The Bank of Indonesia is authorized to set the minimum capital greater than the minimum capital as referred to in paragraph (3), in terms of the Bank of Indonesia assessing the Bank facing potential losses that require greater capital.

Section 3
In the event that the Bank has and/or performs the Controlling against the Child Company, the minimum capital provision obligation as referred to in Article 2 applies to the Bank both individually and in consolidation with the Children's Enterprise.

Section 4
The bank is prohibited from performing a profit distribution if the profit distribution is intended to result in the conditions of the Bank's application not meeting the provisions as referred to in Section 2 and Section 3.

BAB II
MODAL
The First Part
General
Section 5
(1) Modal for the Bank headquartered in Indonesia consists of:
a. core capital (tier 1);
B. complementary capital (tier 2); and
c. Additional complementary capital (tier 3),
after taking into account the factors that are decoding the capital as referred to in Article 14 and Article 21.
(2) In the consolidation of capital, the Child Enterprise's capital component may be counted as core capital, complementary capital, and additional complementary capital must meet the applicable requirements for each of the capital components as applied to the Bank individually.

Section 6
(1) Modal for the branch office of the overseas-based bank consists of:
a.   effort funds;
B.   profit withheld and profit last year after being issued the influence of factors as referred to in Article 11 of paragraph (2);
c. a year of running a 50% (fifty percent) year after the influence of the factors referred to in Article 11 of the paragraph (2);
D.   capital general reserves;
e.   capital destination reserves;
f.    the revaluation of the fixed assets with the scope and calculation as referred to in Section 17 of the paragraph (1) letter c; and
G. the general backup of asset elimination (PPA) preliminary backups of productive assets by calculation as referred to in Section 17 of the paragraph (1) letter d,
after taking into account the factors that are decoding the capital as referred to in Article 11 of the paragraph (1) the letter b, Article 14, and Article 21.
(2) The calculation of the venture funds as a capital component as referred to in paragraph (1) the letter a is done as follows:
a. In terms of actual venture fund positions (actual venture funds) greater than the stated venture funds (declared of venture funds), then the calculated are the funds stated.
B. In terms of the actual venture fund position smaller than the stated venture funds, then what counts is the actual venture fund.
C. In terms of actual negative venture fund positions, the amount is a contributing factor of the capital component as referred to in paragraph (1).

The Second Part
Core Capital
Section 7
(1) The bank is required to provide the core capital as referred to in Article 5 of the paragraph (1) of the letter a at least 5% (five percent) of the ATMR both individually and in consolidation with the Children's Company.
(2) The core modal as referred to in paragraph (1) consists of:
a. deceptor capital;
B. capital additional reserves (disclosed reserve); and
c. innovative capital (innovative capital instrument).

Section 8
The capital of the above is as referred to in Article 7 of the paragraph (2) the letter a must meet the requirements as follows:
a. published and already paid in full;
B. is permanent;
c. available to absorb losses that occur prior to the liquidation and at the time of liquidation;
D. the acquisition of imbal results is unascerable and cannot be accumulated between periods; and
e. neither protected nor guaranteed by the Bank or Children ' s Company.

Section 9
The non cumulative preferent shares that are published for special purposes and have the option of a purchase option (call option), can be recognized as the specified capital component as referred to in Section 7 of the paragraph (2) of the letter if:
a.   satisfy the requirements as referred to in Section 8 of the letter a, the letter c, the letter d, and the letter e; and
B.   the buy option may be executed by meeting the requirements as follows:
1. only on the Bank ' s initiative;
2. after five (five) years since the issuer or issuer destination is unimplemented;
3. have obtained the Bank of Indonesia approval; and
4. does not cause a capital decrease under the minimum requirement as referred to in Section 2 and Section 3.

Section 10
A repurchase of a share (treasury stock) which has been recognized as a component of the dictors ' capital can only be done by meeting the requirements as follows:
a. after a term of 5 (five) years since the issuer;
B. for a specific purpose;
c. mandatory reference to applicable laws;
D. have obtained the Bank of Indonesia approval; and
e. does not cause capital decline under minimum requirements as referred to in Section 2 and Section 3.

Section 11
(1) The additional capital reserve (disclosed reserve) as referred to in Section 7 of the paragraph (2) the letter b consists of:
a. Add factor, that is:
1. agio;
2. The donation capital;
3. General capital reserve;
4. Capital destination reserves;
5. profit last year;
6. The profit of the year runs by 50% (fifty percent);
7. The difference in the financial report definition;
8. The capital deposit fund, which meets the requirements as follows:
a) a full term for the purpose of capital addition, but has not been supported with the completeness of the requirements to be classed as capital dictors such as the implementation of the General Shareholders ' Meeting (RUPS) or the authorization of the base budget by Authorized instance;
b) placed on a special account (escrow account) that is not given an imbal result;
c) may not be retracted by the shareholders/prospective shareholders and available to absorb the loss; and
d) use of funds must be with the approval of the Bank of Indonesia.
9. Waran published as an incentive to the Bank shareholders of 50% (fifty percent), by meeting the requirements as follows:
a) the underlying instrument is a common stock;
b) cannot be converted into any form other than stock; and
c) The calculated value is a reasonable value of the waran on the date of its publication.
10. The stock options (stock option) are published through a stock-based employee/management (employee/management stock option) compensation program by 50% (fifty percent), by meeting the requirements as follows:
a) the underlying instrument is a common stock;
b) cannot be converted into any form other than stock; and
c) calculated value is the reasonable value of the stock option at the date of the compensating date.
B. deparable factor, i.e.:
1. disagio;
2. damages in past years;
3. The loss of the year goes;
4. Less financial report summation;
5. Other negative comprehensive income, which includes the unendealized loss arising from the drop in the reasonable value of the inclusion within the group available for sale;
6. Less difference between PPA over productive assets and reserves loss loss of financial assets over productive assets;
7. Less difference between the amount of adjustments to the valuations of the financial instruments in Trading Book and the number of adjustments based on applicable financial accounting standards; and
8. PPA non productive.
(2) In the calculation of past years and/or year runs as referred to in paragraph (1) the letter a number 5 and number 6 must be removed from the influence of the factors as follows:
a. the toughness tax calculation (deferred tax);
B. Fixed asset revaluation value difference;
c. an increase in the reasonable value of fixed assets;
D. the increase or decrease of reasonable value over financial obligations; and/or
e. advantages over asset sales in securitization transactions (gain on sale).

Section 12
(1) The innovative Modal as referred to in Section 7 of the paragraph (2) of the letter c which may be counted as the highest core capital component of 10% (ten percent) of the core capital as referred to in Article 5 of the paragraph (1) letter a.
(2) The innovative Modal as referred to in paragraph (1) must meet the requirements as follows:
a.   published and already paid in full;
B.   do not have a term and no requirements require the softening by the Bank in the future;
c. available to absorb losses that occurred prior to the liquidation and at the time of liquidation and is subordinated, which is clearly stated in the issuance of the publishing/agreement;
D.   the acquisition of imbal results is unascerable and cannot be accumulated between periods;
e.   neither protected nor guaranteed by the Bank or Children ' s Company;
f.    if accompanied by a purchase option (call option) feature, it must meet the following requirements:
1. may only be executed at least 10 (ten) years after the capital instrument is published;
2. The issuer documentation must specify that the option can only be executed upon the approval of the Bank of Indonesia; and
3. In terms of innovative capital instruments containing a step-up feature, then step-up feature must meet the requirements as follows:
a) step-up feature is limited, set, and expressed clearly in the instrument publishing agreement;
b) can only be realized once during the instrument period, i.e. after the fastest time 10 (ten) years after it is published; and
c) the magnitude of the step-up feature is relevant and is in line with market conditions as well as no greater than any of the following limitations:
1) 100 (hundred) base points; or
2) 50% (fifty percent) of marjin (credit spread) early; and
G.   has obtained the Bank of Indonesia ' s approval to be counted as a capital component
(3) The execution of a buy option (call option) as referred to in paragraph (2) the letter f 1 and number 2 can only be performed by the Bank throughout:
a.   have obtained the Bank of Indonesia approval;
B.   does not cause capital decline under minimum requirements as referred to in Section 2 and Section 3; and
c. replaced with a modal instrument that has:
1. The quality is equal or better; and
2. The same number or different amounts of the time not exceeding 10% (ten percent) of the core capital as referred to in Article 5 of the paragraph (1) letter a.

Section 13
(1) In the calculation of a consolidated KPMM ratio, minority interest (minority interest) is counted as the core capital as referred to in Article 5 of the paragraph (1) letter a unless there is a part of the minority interest not in accordance with the requirements of core capital components.
(2) The minority interest as referred to in paragraph (1) is not counted in the core capital consolidate if the Bank's ownership of the Child Company is 50% (fifty percent) or less and meets the conditions as follows:
a.   there is no connection/affiliation between any other shareholder (minority interest) with the Bank; or
B. there is no statement letter or decision of the RUPS Children's Company stating the willingness of other shareholders (minority interest) to support the capital of the Bank ' s venture group.

Section 14
The core capital as referred to in Article 5 of the paragraph (1) of the letter a reckoned with the paranointing factor is:
a. Goodwill;
B. Other intangible assets; and/or
C. Another core capital reduction factor as referred to in Article 21.

The Third Part
Complementary Capital
Section 15
(1) Complementary Terms to the IBM Cloud Service ("IBM International"), and (ii) the following terms:
(2) The complementary Modal as referred to in paragraph (1) consists of:
a. Top-level complementary capital (upper tier 2); and
B. Lower tier added capital (lower tier 2).

Section 16
(1) The upper tier 2 (upper tier 2) as referred to in Section 15 of the (2) letter of the capital instrument as referred to in Section 17 of the paragraph (1) letter a must meet the following requirements:
a.   published and already paid in full;
B.   do not have a term and no requirements require the softening by the Bank in the future;
c. available to absorb losses in terms of the amount of the Bank ' s loss exceeding withheld profits and reserves which include core capital even though the Bank has not been liquidated and subordinated, which is clearly stated in the documentation publishing/agreement;
D. the principal payment and/or imbal results are suspended and accumulated between periods (cummulative) if the payment is intended to cause the ratio of the KPMM individually or the KPMM ratio to the consolidation does not meet the conditions as referred to in Section 2 and Section 3;
e.   neither protected nor guaranteed by the Bank or Children ' s Company;
f.   if accompanied by a purchase option (call option) feature, it must meet the following requirements:
1. may only be executed at least 10 (ten) years after the capital instrument is published;
2. The issuer documentation must specify that the option can only be executed at the approval of the Bank of Indonesia; and
3. In terms of the capital instrument contains a step-up feature, then a step-up feature is required to meet the requirements as follows:
a) step-up feature is limited, set, and expressed clearly in the instrument publishing agreement;
b) may only be reproductable one time during the instrument period, which is, after at least 10 (ten) years since publication; and
c) the magnitude of the step-up feature is relevant and is in line with market conditions as well as no greater than any of the following limitations:
1) 100 (hundred) base points; or
2) 50% (fifty percent) of marjin (credit spread) early; and
G. has obtained the Bank of Indonesia ' s approval to be taken into account as a capital component except the devolution of innovative capital that exceeds innovative capital constraints.
(2) The execution of a buy option (call option) as referred to in paragraph (1) the letter f 1 and number 2 can only be performed by the Bank throughout:
a.   have obtained the Bank of Indonesia approval; and
B. not to cause a capital drop under the minimum requirement as referred to in Section 2 and Section 3; or
c. replaced with a modal instrument that has:
1. The quality is equal or better; and
2. in the same number or different amount as long as it does not exceed the limitations of the complementary capital as referred to in Article 15 of the paragraph (1).

Section 17
(1) Upper Tier 2 (upper tier 2) includes:
a. the instrument of capital in the form of a stock or other capital instrument that meets the requirements as referred to in Article 16;
B.   part of an innovative capital that cannot be taken into account in core capital;
c. Revaluation of fixed assets, which includes:
1. The previous fixed asset revaluation rate difference has been classified to the profit balance, by 45% (forty-five percent); and
2. A reasonable value increase over the previously unrealized fixed assets has been classified to the profit balance, by 45% (forty-five percent);
D. PPA general reserves of the mandatory productive assets are formed at the highest amount of 1.25% (one twenty-five percent comma) of ATMR for Credit Risk; and
e. The other comprehensive income is at the highest of 45% (forty-five percent), which is an unethically unrealized advantage arising from the increase in the reasonable value of the inclusion within the group available for sale.
(2) More general backup difference required to be formed from the limit as referred to in paragraph (1) the letter d may be counted as an ATMR calculation of calculation for Credit Risk.

Section 18
(1) The lower tier (lower tier 2) as referred to in Section 15 of the paragraph (2) the letter b can only be calculated at the highest of 50% (fifty percent) of the core capital as referred to in Article 5 of the letter a.
(2) The lower level of the lower level (lower tier 2) as referred to in paragraph (1) must meet the requirements as follows:
a.   published and already paid in full;
B. have a term of the agreement at least 5 (five) years and may only be repaid after obtaining the Bank of Indonesia's approval;
c. available to absorb losses at the time of liquidation and are subordinated, which is clearly stated in the publishing/agreement documentation;
D. the principal payment and/or imbal results are suspended and accumulated between periods (cummulative), including payment at the time of due, if the payment is referred to either the individual KPMM ratio or the KPMM ratio the consolidation does not meet the provisions as referred to in Article 2 and Section 3;
e.   neither protected nor guaranteed by the Bank or Children ' s Company;
f.    if accompanied by a purchasing option (call option) feature, it must meet the following requirements:
1. may only be executed at least 5 (five) years after the capital instrument is published;
2. The issuer documentation must specify that the option can only be executed at the approval of the Bank of Indonesia; and
3. In terms of the capital instrument contains a step-up feature, then a step-up feature should meet the requirements as follows:
a) step-up feature is limited, set, and expressed clearly in the instrument publishing agreement;
b) may only be reprodused once during the instrument period, which is, after at least 5 (five) years since publication; and
c) the magnitude of the step-up feature is relevant and is in line with market conditions as well as no greater than any of the following limitations:
1) 100 (hundred) base points; or
2) 50% (fifty percent) of marjin (credit spread) early; and
G.   has obtained the Bank of Indonesia ' s approval to be counted as a capital component
(3) The execution of a buy option as referred to in paragraph (2) the letter f 1 and number 2 can only be done by the Bank throughout:
a.   have obtained the Bank of Indonesia approval; and
B. not to cause a capital drop under the minimum requirement as referred to in Section 2 and Section 3; or
c. replaced with a modal instrument that has:
1. The quality is equal or better; and
2. in the same number or different amount as long as not exceeding the lower level complementary capital limit (lower tier 2) as referred to in paragraph (1).
(4) The amount to be reckoned with as lower-level complementary capital (lower tier 2) is the number of lower-level complementary capital (lower tier 2) minus amortization calculated by using straight line methods.
(5) Amortization as referred to in paragraph (4) is performed for the remainder of the term 5 (five) last year.
(6) In the event of an option, then the term until the Bank may execute such options is the remainder of the term of the instrument.

Section 19
The placement of funds on subordinated loans or subordinated bonds or that meets complementary capital criteria at other banks is taken into account as a sacrifice factor for subordinated loans or subordinated bonds that are the capital component. Bank of the publisher/publisher.

Section 20
Part of the complementary capital that has been set up for softening reserves (sinking fund) is not taken into account as a complementary capital component, if the Bank:
a.   has set out to set aside and manage such a softening reserve fund (sinking fund) in particular; and
B. has published the creation of such asinking fund, including in the Obligation General Meeting (RUPO).

Section 21
(1) The capital decoding of the capital as referred to in Section 5 of the paragraph (1) and Section 6 of the paragraph (1) includes:
a.   Bank inclusion, which includes:
1. All Bank disputes to the Children's Enterprise except for temporary capital inclusion in the framework of a credit restructuring;
2. All disputes to the company or legal entity with the ownership of the Bank are more than 20% (twenty percent) up to 50% (fifty percent) but the Bank has no Controlling;
3. All the inclusion of the insurance company;
B.   shortage of capital (shortfall) of fulfillment of the minimum solvency ratio (Risk Based Capital/RBC minimum) on insurance companies owned and controlled by the Bank; and
c. Security exposures.
(2) The deductions as referred to in paragraph (1) of the letter a and letter b be counted by 50% (fifty percent) of the core capital as referred to in Section 5 of the paragraph (1) letter a and 50% (fifty percent) of the complementary capital as referred to in Section 5 of the paragraph (1) of the letter b.
(3) The entire capital reduction factor as referred to in paragraph (1) of the letter a and the letter b is not taken into account anymore in ATMR for Credit Risk.

The Fourth Part
Additional Complementary Capital
Section 22
(1) additional complementary Modal as referred to in Section 5 of the paragraph (1) the letter c may be used throughout the meeting of the criteria as follows:
a.   used only to account for Market Risk;
B.   does not exceed 250% (two hundred and fifty percent) of the core capital portion allocated to account Market Risk; and
c. The highest number of complementary capital and additional complementary capital of 100% (one hundred percent) of the core capital as referred to in Article 5 of paragraph (1) letter a.
(2) additional complementary Modal (tier 3) as referred to in paragraph (1) must meet the following requirements:
a.   published and already paid in full;
B. have a term of the agreement at least 2 (two) years and may only be paid off after obtaining the Bank of Indonesia's approval;
c. available to absorb losses at the time of liquidation and are subordinated, which is clearly stated in the publishing/agreement documentation;
D. the principal payment and/or imbal results are suspended and accumulated between periods (cummulative) if the payment is intended to cause the ratio of the KPMM individually or the KPMM ratio to the consolidation does not meet the conditions as referred to in Section 2 and Section 3;
e.   neither protected nor guaranteed by the Bank or Children ' s Company;
f.    if accompanied by a purchasing option (call option) feature, it must meet the following requirements:
1. may only be executed at least 2 (two) years after the capital instrument is published;
2. The issuer documentation must specify that the option can only be executed at the approval of the Bank of Indonesia; and
3. In terms of the capital instrument contains a step-up feature, then a step-up feature should meet the requirements as follows:
a) step-up feature is limited, set, and expressed clearly in the instrument publishing agreement;
b) may only be reproductable one time during the instrument period, i.e. after at least two (two) years since publication; and
c) the magnitude of the step-up feature is relevant and is in line with market conditions as well as no greater than any of the following limitations:
1) 100 (hundred) base points; or
2) 50% (fifty percent) of marjin (credit spread) early; and
G. has obtained the Bank of Indonesia approval to be counted as a capital component except additional complementary capital components (tier 3) as referred to in paragraph (4) letter b and letter c.
(3) The execution of a buy option as referred to in paragraph (2) the letter f 1 and number 2 can only be done by the Bank throughout:
a.   have obtained the Bank of Indonesia approval; and
B. does not cause capital decline under minimum requirements as referred to in Article 2 and Section 3.
(4) Additional complementary Modal (tier 3) includes:
a.   Subordination loan or short term subordination bond;
B. Unallocated complementary capital to close the burden of capital for Credit and/or capital burden for Operational Risk but qualify as complementary capital (unused but eligible tier 2); and
c. Part of the lower level of complementary capital (lower tier 2) that exceeds the lower level complementary capital limit.

Section 23
In a consolidated KPMM ratio, for innovative capital components, upper tier 2 (upper tier 2), lower-level complementary capital (lower tier 2), and additional complementary capital (tier 3), the bank is required to deliver. supporting data indicating that the Child Company ' s calculated capital component has met the entire requirement as a capital component.

Fifth Part
Capital Equivalency ates Assets (CEMA)
Section 24
(1) The branch office of a bank based abroad is required to meet the minimum CEMA.
(2) The minimum (2) CEMA as referred to in paragraph (1) is required to be fulfilled from the venture funds as referred to in Section 6 of the paragraph (1) letter.
(3) The venture funds owned by the branch offices of overseas-based banks must meet the minimum capital according to the minimum risk profile and CEMA.
(4) The minimum CEMA as referred to in paragraph (1) is calculated every month.
(5) The minimum CEMA as referred to in paragraph (1) is set at 8% (eight percent) of the total bank obligations on each month and at least as much as Rp1,000.000.000.00 (one trillion rupiah).
(6) The minimum CEMA as referred to in paragraph (4) is required to be fulfilled and placed most slowly the next 6 months.

Section 25
(1) The bank is required to establish the financial assets used to meet the minimum CEMA.
(2) The financial assets that have been established to meet the minimum CEMA cannot be exchanged until with the next CEMA fulfillment period.
(3) The financial asset as referred to in paragraph (1) that is eligible and may be counted as CEMA is:
a.   valuable letter published by the Government of the Republic of Indonesia and intended to be owned up to the due date;
B. a valuable letter published by the other Bank of Indonesia ' s legal governing body and meets the criteria as follows:
1. No equity;
2. have an investment rating; and
3. not intended for trading;
And/or
c. Precious letters published by the Indonesian legal governing body and meet the criteria as follows:
1. No equity;
2. have the most underrated mail ranking of A + or equivalent;
3. not intended for trading; and
4. portion of the corporation ' s most valuable mail by 20% (twenty percent) of the total CEMA minimum.
(4) The financial assets used as CEMA should be free of any party ' s claim.
(5) The calculation of financial assets used to meet CEMA is done as follows:
a.   for financial assets owned by the Bank calculated based on the value of the financial assets at the end position of the month of the report;
B.   for financial assets purchased after the final position of the month the report is calculated based on the value of the financial assets in the position of purchase of financial assets.

BAB III
WEIGHTED ASSETS AT RISK
The First Part
General
Section 26
The risk-weighted asset (ATMR) used in the minimum capital calculation as referred to in Section 2 of the paragraph (3) consists of:
a. ATMR for Credit Risk;
B. ATMR for Operational Risk; and
C. ATMR for Market Risk.

Section 27
(1) Each Bank is obliged to account for ATMR for Credit Risk and ATMR for Operational Risk.
(2) The ATMR for Market Risk is only mandatory to be counted by the Bank that meets certain criteria.

Section 28
Certain criteria as referred to in Article 27 of the paragraph (2) are:
a.   Banks that individually meet one of the criteria as follows:
1. Bank with total assets of Rp10,000.000.000.00 (ten trillion rupiah) or more;
2. Bank devisa with the position of financial instruments of valuable mail and/or derivative transactions in Trading Book of Rp20,000.000.00 (twenty billion rupiah) or more;
3. Bank is not a bank of devisa with the position of the financial instrument of a valuable letter and/or interest transaction in Trading Book of Rp25.000.000.00 (twenty-five billion rupiah) or more;
And/or;
B.   Banks that are consolidated with Child Companies meet one of the criteria as follows:
1. Devisa bank that is consolidated with the Child Company having a financial instrument position of a valuable letter including financial instruments exposed to the risk of equity and/or derivative transactions in Trading Book and/or instruments The financial risks exposed to the commodity risk in Trading Book and Banking Book of Rp20,000.000.00 (twenty billion rupiah) or more;
2. The Bank is not a Bank of Devisa which is consolidated with the Child Company having a financial instrument position of a valuable letter including financial instruments exposed to the risk of equity and/or derivative transactions in Trading Book and/or Financial instruments exposed to commodity risk in the Trading Book and the Banking Book of Rp25.000.000.00 (twenty-five billion rupiah) or more.
C.   Banks that have a network of offices and/or Children's Enterprise in other countries and branch offices from banks that are based overseas.

Section 29
A financial asset that at the time of initial recognition is set to be a financial asset measured at a reasonable value through reports of profit and credit profits classified in the group traded exempt from Trading Book coverage.

Section 30
Valuables in Trading Book only include valuable letters classified in the trafficked group.

Section 31
Bank which after the merger, consolidation, or acquiring meets the criteria as referred to in Section 28, at least 3 (3) monthly reporting periods in 6 (six) first month after merger, consolidation, or acquisition is stated Effectively counts the Market Risk in calculation of the KPMM ratio since the month to 7 (seven) after the merger, consolidation, or acquisition is declared effective.

Section 32
The Bank that has met the criteria as referred to in Article 28 and the Bank as referred to in Article 31 it is required to account for Market Risk in the obligation of capital provision The minimum even though the Bank no longer meets the criteria in question.

The Second Part
Credit Risk
Section 33
(1) In ATMR calculation for Credit Risk, the Bank uses:
a.  Standard Approach (Standardized Approach); and/or
B.  An internal rating approach (Internal Rating based Approach).
(2) The bank that uses the approach as referred to in paragraph (1) the letter b is required to obtain an approval first from the Bank of Indonesia.
(3) The further provisions on the use of each approach as referred to in paragraph (1) are further regulated in the Indonesian Bank Circular Letter.

The Third Part
Operational Risk
Section 34
(1) In ATMR calculation for Operational Risk, the Bank uses:
a. Basic Indicator Approach (Basic Indicator Approach);
B. Standard Approach (Standardized Approach); and/or
C. A more complex approach (Advanced Measurement Approach).
(2) The bank that uses the approach as referred to in paragraph (1) letter b and the letter c is required to obtain an agreement first from the Bank of Indonesia.
(3) More terms on the use of each approach as referred to in paragraph (1) and paragraph (2) are set in the Indonesian Bank of Circular Letters.

The Fourth Part
Market Risk
Section 35
(1) The Market Risk is required to be counted by the Bank individually and in consolidation with the Children ' s Enterprise is:
a.  interest rates risk; and/or
B.  Exchange rate risk.
(2) The bank is consolidated to account for the risk of equity and/or commodity risk other than Market Risk as referred to in paragraph (1) if it meets the criteria as follows:
a. has Children ' s Enterprise exposed to equity risk and/or commodity risk; and
B. Consolidation of the Cloud Service is subject to the terms and terms of the IBM International Business Service.

Section 36
(1) The bank is obliged to do a daily valuation of Trading Book position accurately.
(2) In conducting of valuations as referred to in paragraph (1), the Bank is required to have a policy and valuation procedure, including having an adequate management information system and control process control system and an integrated with risk management system.
(3) The policy and procedure of valuation as referred to in paragraph (2) is mandatory on the principle of prucency.

Section 37
(1) The mandatory valuation process is carried out based on reasonable value.
(2) Towards an actively traded financial instrument, the valuation process as referred to in paragraph (1) is carried out by using the transaction price that occurs (close out prices) or the market price annotation of a source independent.
(3) Valuation of financial instruments as referred to in paragraph (2) using:
a. bid price for the assets owned or obligations to be published; and/or
B. ask price for the assets to be acquired or the obligations it has.
(4) In terms of market pricing as referred to in paragraph (2) is not available, the Bank may set a reasonable value using a model-based assessment technique based on the principle of caution.

Section 38
(1) The bank is required to conduct verification of the process and the outcome of the valuation.
(2) The verification process as referred to in paragraph (1) is mandatory at least 1 (one) times in 1 (one) month by the parties not participating in the performance of the valuation.
(3) The bank is obliged to adjust the value of the valuation based on the verification as referred to in paragraph (1).

Section 39
Banks are required to immediately make adjustments to the valuation results that do not yet reflect a reasonable value in terms of:
a.   a significant change in economic conditions;
B.   the price of a financial instrument that is referenced in reference is the price of a forced transaction, forced liquidation, or sale due to financial difficulties;
c. Financial instruments are already approaching the due date; and/or
D.   The price that is made reference is not reasonable because of the other conditions.

Section 40
(1) In addition to the adjustments as referred to in Article 39, the Bank is obliged to make an adjustment to the valuations of the less licuid position by considering certain factors.
(2) In terms of the adjustment as referred to in paragraph (1), the Bank is required to account for the impact of adjustment as the core capital reduction factor in the calculation of the KPMM ratio.

Section 41
(1) In ATMR calculations for Market Risk, the Bank uses:
a.  Standard Method (Standard Method); and/or
B.  Internal Model (Internal Model).
(2) The Bank that meets the criteria as referred to in Article 28, is required to first use the Standard Method in taking into account the Market Risk.
(3) The bank that uses the approach as referred to in paragraph (1) the letter b is required to obtain an approval first from the Bank of Indonesia.
(4) Further provisions concerning the use of each method as referred to in paragraph (1) and paragraph (2) are set in the Indonesian Bank of Circular Letters.

BAB IV
Internal Capital Adequacy Assessment Process (ICAAP) and
Supervisory Review and Evaluation Process (SREP)
The First Part
Coverage Internal Capital Adequacy Assessment Process (ICAAP)
Section 42
(1) In fulfilling the obligations as referred to in Article 2 and Section 3, the Bank is obliged to have an ICAAP tailored to the size, characteristic, and complexity of the Bank ' s efforts.
(2) The most underwritten ICAAP includes:
a. active oversight of the Board of Commissioners and Directors; B. Capital adequate assessment;
c. monitoring and reporting; and
D. Internal control.
(3) The bank is obliged to document the ICAAP.

The Second Part
Supervisory Review and Evaluation Process (SREP)
Section 43
(1) Bank Indonesia conducts SREP.
(2) Based on the SREP results, the Bank of Indonesia can ask the Bank to correct the ICAAP.

Section 44
(1) If there is a difference in the results of the capital calculation corresponding to the risk profile between the results of self assessment The bank with the SREP results, then the prevailing capital calculation is the SREP result.
(2) If the Bank of Indonesia rates the capital it does not meet the minimum capital at the risk profile as referred to in Article 2 and Section 3, then the Bank of Indonesia asks the Bank for:
a. provide capital additional to meet minimum capital at risk profile;
B. improving the quality of risk management processes; and/or
c. decrease the risk exposure.

Section 45
In the event the Bank of Indonesia assessees the declining trend of the Bank's capital to potentially cause the Bank's capital to be under the mandatory minimum capital provision, the Bank of Indonesia can ask the Bank to perform among other things:
a. limitations of certain business activities;
B. the opening restrictions of the office network; and/or
c. Capital distribution restrictions.

BAB V
REPORTING
Section 46
(1) The Bank that meets the criteria as referred to in Article 28 is required to deliver a KPMM calculation report by taking into account the Market Risk.
(2) The preparation and delivery of the KPMM calculation report by taking into account the Market Risk as referred to in paragraph (1) is required to refer to the provisions of the General Bank's Terms of Service.
(3) The reports associated with the Internal Model are quarterly for first compiled at the end of the quarter after the Internal Model is used for calculation of KPMM ratios.

Section 47
(1) The bank is required to deliver a minimum capital adequate report according to the risk profile to the Bank of Indonesia.
(2) The report as referred to in paragraph (1) is delivered in conjunction with the delivery of the results self assessment of the Bank Health Level.

Section 48
(1) The branch office of a bank based abroad is required to deliver the minimum CEMA fulfillment report.
(2) The CEMA fulfilment report as referred to in paragraph (1) at least contains the information regarding:
a. the total average of the Bank ' s obligations on a weekly as referred to Section 24 of the paragraph (5);
B. the amount of the venture allocation in the form of CEMA;
c. type of assets and fulfillment of CEMA financial asset criteria;
D. value recorded each of CEMA ' s financial assets; and
e. maturity date financial assets of CEMA.

Section 49
(1) The report as referred to in Article 48 paragraph (1) is compiled every month and is required to be delivered to the Bank of Indonesia the slowest date of the following month.
(2) In terms of the final limit of the report ' s delivery as referred to in paragraph (1) fall on Saturday, Sunday, and/or holiday, then the minimum CEMA fulfilment report is delivered on the next working day.

Section 50
(1) The bank is declared late to submit a report as referred to in Section 47 of the paragraph (1) and Section 48 of the paragraph (1) if the report is received by the Bank of Indonesia after the deadline of delivery of the report to at least 5 (five) days after Time limit of report delivery.
(2) The bank is declared not to submit a report as referred to in Article 47 of the paragraph (1) and Section 48 of the paragraph (1) if the report has not been received by the Bank of Indonesia until the time limit is tardined as in paragraph (1).
(3) The Bank that is stated does not submit a report as referred to in paragraph (2) to continue to submit the report as referred to in Article 47 of the paragraph (1) and Article 48 of the paragraph (1).

Section 51
The report as referred to in Article 47 of the paragraph (1) and Article 48 of the paragraph (1) is delivered to:
a.   Bank Oversight Department, MH Thamrin Road No. 2, Jakarta 10350, for the Bank headquartered in the work area of the Bank of Indonesia ' s Central Office; or
B. The office of the Bank of Indonesia is local, for the Bank headquartered in the work area of the Indonesian Bank Representative Office.

BAB VI
SANCTION
Section 52
Bank which violates the terms as set out in Section 2, Section 3, Section 4, Section 7 of the paragraph (1), Article 10, Section 12 of the paragraph (1) and paragraph (3), Article 15 of the paragraph (1), Section 16 of the paragraph (2), Section 18 of the paragraph (1) and paragraph (3), Section 22 of the paragraph (1) and paragraph (3), Section 23, Section 2, Section 2, Section 2, Section 2, Section 2, Section 2, Section 2, Section 2, Section 2 Section 24, Section 31, Section 31, Section 32, Article 33, Article 34, Article 35, Article 36, Section 36, Article 37, Article 38, Article 39, Article 40, Article 41, Article 42, Article 42, Article 47, Section 48, and Section 49 are subject to administrative sanctions, among other things:
a.   written reprimand;
B.   the profit transfer ban for the branch office of a foreign based bank;
c. freezing of certain business activities;
D.   the opening ban of the office network;
e.   decline of the Bank ' s health level; dan/or
f.    Bank manager and/or bank shareholder in a list of people who are prohibited to be a shareholder and a bank administrator.

Section 53
Banks that violate the reporting provisions as referred to in Section 46 are subject to sanctions as set forth in the applicable provisions regarding the General Bank Terms of Time.

Section 54
(1) In addition to the sanctions as referred to in Article 52, the Bank stated:
a. late passing the report as referred to in Article 50 paragraph (1) of Rp1,000.00 (one million rupiah) mandatory liability sanction (one million rupiah) per business day of delay;
B. not to submit a report as referred to in Article 50 paragraph (2) is subject to a pay liability sanction of Rp50,000.000.00 (fifty million rupiah).
(2) In the event the Bank is charged with paying liability for being declared not to submit a report, then the sanction of the pay obligation is due to late passing the report unenforced.

Section 55
In addition to the administrative sanction as referred to in Section 52, the Bank which may not meet the minimum capital provision as referred to in Section 2 and Section 3 is required to perform the step – step or oversight measures as set out in the Bank of Indonesia provision regarding the follow-up oversight and designation of the Bank status.

Section 56
Banks that do trade over financial assets in the group are available for sale, which is done with a trade-like pattern of financial assets in the traded group:
a. in significant amounts; and/or
B. in high frequency,
The sanctions are not allowed to group the next purchase of financial assets in the group available for sale, for 6 (six) months counting the date of the release of the coaching letter by the Bank of Indonesia.

Section 57
In the event the Bank performs an act as referred to in Article 56 for the second time, then the Bank is charged with not being allowed to group the next purchase of financial assets in the group available for sale for 1 (one) years are counted since the date of the release of the coaching letter by Bank Indonesia.

Section 58.
In the event the Bank commits an act as referred to in Article 56 more than twice, then the Bank is charged with not being allowed to group the purchase of the next financial assets in the group available for sale for 2 (two) years are counted since the date of the release of the coaching letter by Bank Indonesia.

BAB VII
CLOSING PROVISIONS
Section 59
(1) The branch office of a bank based abroad is required to meet the minimum CEMA of 8% (eight percent) of the total bank obligations as referred to in Article 24 most slowly in the June 2013 position.
(2) If the minimum CEMA is referred to in verse (1) smaller than Rp1,000.000.000.00 (one trillion rupiah) then the branch office of a bank based abroad is required to meet the minimum CEMA of Rp1,000.000.000.00 (one trillion rupiah) as referred to in Article 24 of the paragraph (5) most slowly in the December 2017 position.

Section 60
(1) The modal calculation of mínimum is based on the risk profile as referred to in Article 2 and Section 3 for the first time using the position risk profile of the month of December 2012.
(2) The capital fulfilment of mínimum according to the risk profile is set as follows:
a.   Capital fulfilment of the mínimum position in March up to August is based on the position of the risk profile of the previous December position of the previous year;
B.   Capital fulfilment of the mínimum position in September to the next February is based on the position of the June position risk profile;
C.   In the event of a change in the ranking of the risk profile between the risk profile assessment period, then the capital fulfilment of mínimum is based on the last risk profile ranking.

Section 61
The further provisions of the Bank of Indonesia Regulation are set in the Indonesian Bank Circular Letter.

Section 62.
At the time the Bank of Indonesia Regulation comes into effect, then:
a.   Indonesia Bank Regulation No. 9/13/PBI/2007 on the Liability of Providing Minimum Capital Banks by Taking Into Account Market Risk (sheet Of State Of The Republic Of Indonesia In 2007 Number 128, Additional Sheet Of State Republic Indonesia Number 4773);
B. Indonesia Bank Regulation No. 10 /15/PBI/2008 on the Liability of Provision Of The Minimum Capital Bank (sheet Of State Of The Republic Of Indonesia 2008 Number 135, Additional Gazette Of The Republic Of Indonesia Number 4895),
revoked and declared not valid.

Section 63
The Bank of Indonesia Regulation is beginning to apply at a set date.

In order for everyone to know, order the invitational of the Bank of Indonesia Regulation with its placement in the Republic of Indonesia State Sheet.

Set in Jakarta
on November 28, 2012
INDONESIAN BANK GOVERNOR,

DARMIN NASUTION

Promulgated in Jakarta
on November 28, 2012
MINISTER FOR LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,

AMIR SYAMSUDIN