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Bank Indonesia Regulation Number 11/25/pbi/2009 Year 2009

Original Language Title: Peraturan Bank Indonesia Nomor 11/25/PBI/2009 Tahun 2009

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he Bank of Indonesia;
B. could potentially pose a significant loss to the Bank ' s financial condition; dan/or
c. not in accordance with the applicable provisions, Bank Indonesia may order the Bank to stop the issuer of the product or the execution of the intended activity.
(7) The report of the plan and the realization of the issuer of a product or the execution of certain activities can be independently regulated in the Letter of Circular.

10. The p029)
BANK INDONESIA RULES
NUMBER: 11/25 /PBI/2009
ABOUT
CHANGES TO INDONESIA ' S BANK REGULATIONS
NUMBER 5/8/PBI/2003 ON THE APPLICATION OF RISK MANAGEMENT FOR THE GENERAL BANK

WITH THE GRACE OF THE ALMIGHTY GOD

GOVERNOR OF THE BANK OF INDONESIA,

Weigh: a. that with the more complex the Bank's products and activities then the risks facing the Bank will increase;
B. that the increased risk facing the Bank needs to be offset by the quality of application of adequate risk management;
c. that transparency is one of the aspects that need to be noticed in the risk control facing the Bank;
D. that improving the quality of application of risk management will support the effectiveness of risk-based bank oversight frameworks;
e. that in accordance with the terms of the letter a up to the letter d, it is considered necessary to rearrange the application of risk management for the general bank in an Indonesian Bank Regulation;

Given: 1. Act No. 7 of 1992 on Banking (State Sheet of Indonesia Year 1992 Number 31, Additional Gazette Republic of Indonesia No. 3472) as amended by Law Of 1998 Number 10 (State Of The Republic Of Indonesia In 1998 Number 182, Additional Sheet Of The Republic Of Indonesia Indonesia Number 3790);
2. Act Number 23 Year 1999 about Bank Indonesia (State Sheet of the Republic of Indonesia Year 1999 No. 66, Additional Gazette Republic of Indonesia Number 3843) as amended last with Law No. 6 Year 2009 on Establishing Government Regulation Replacement Rule Number 2 Year 2008 on Second Amendment of the 1999 Act No. 23 on Bank of Indonesia to Act (Republic of State Sheet) Indonesia Year 2009 Number 7, Additional Gazette of the Republic of Indonesia No. 7 4962);
3. Act No. 21 of 2008 on Sharia Banking (State Sheet of the Republic of Indonesia 2008 Number 94, Additional Gazette Republic of Indonesia Number 4867);

DECIDED:

Establishing: INDONESIAN BANK REGULATIONS ON CHANGES TO INDONESIA ' S BANK REGULATIONS NUMBER 5/8/PBI/2003 ABOUT THE APPLICATION OF RISK MANAGEMENT FOR PUBLIC BANKS.

Section 1
Some of the provisions in Bank Indonesia Regulation Number 5/8/PBI/2003 on Implementing Risk Management For Public Banks (sheet Of State Of The Republic Of Indonesia In 2003 Number 56, Additional Sheet Of State Republic Indonesia Number 4292) were changed as following:
1. The provisions of Article 1 are changed, so it reads as follows:

Section 1
In Regulation of the Bank of Indonesia this is referred to:
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 foreign bank branch office, and the General Bank of Sharia as referred to in Law No. 21 of 2008 on Sharia Banking.
2. The Conventional Public Bank is the Conventional Public Bank as referred to in Law No. 21 of 2008 on Sharia Banking.
3. The General Bank of Sharia is the General Bank of Sharia as referred to in Law Number 21 of the Year 2008 on Sharia Banking.
4. The risk is a potential loss due to a particular event (events).
5. Risk Management is a series of methodologies and procedures used to identify, measure, monitor, and control the risks arising from all of the Bank ' s business activities.
6. The risk of Credit is the risk due to the failure of the debtor and/or other parties in fulfilling the obligations to the Bank.
7. Market Risk is the Risk on the balance sheet position and administrative accounts including derivative transactions, as a result of the overall change of market conditions, including the Risk of price changes option.
8. The risk of liquidity is the risk due to the Bank ' s inability to meet the maturing obligations of cash flow funding sources and/or from high quality licuid assets that can be diagrams, without interfering with the activities and financial conditions Bank.
9. Operational Risk is the Risk of inadequacy and/or the lack of an internal process, human error, system failure, and/or the external events affecting the Bank's operational operations.
10. The risk of Compliance is the Risk as a result of the Bank disobeying and/or not carrying out the applicable laws and conditions.
11. The risk of Law is the Risk due to the lawsuits and/or the weaknesses of the juridical aspect.
12. Reputation risk is the risk as a result of declining levels of trust stakeholder that is sourced from negative perception of the Bank.
13. The risk of a Strategy is the risk of indifference in the take and/or the execution of a stratejik decision and failure in anticipation of a change in the business environment.
14. Directors:
a. for a Limited Perseroan-shaped Bank is the board of directors as referred to in the Act on Limited Perseroan;
B. for a State Corporate Law-shaped Bank is the board of directors as referred to in the Law on Regional Enterprises;
c. for the Coperating Law-shaped Bank is the administrator as referred to in the Act on Percofeelings;
D. To a foreign bank branch office is the head of a foreign bank branch office.
15. Board of Commissioners:
a. for a Limited Perseroan-shaped Bank is the board of commissioners as referred to in the Act on Limited Perseroan;
B. for a Regional Corporate Law-shaped Bank is the supervisor as referred to in the Law on Regional Companies;
c. for the Koperating law-shaped bank is the supervisor as referred to in the Act on Percofeelings.
16. Children's Enterprise is a legal entity or company owned and/or controlled by the Bank directly or indirectly, both inside and abroad conducting business activities in the financial field, consisting of:
a. Subsidiary Companies (subsidiary company) The Children's Enterprise with a Bank entitlement is more than 50% (fifty-perhundred);
B. Participation Company (participation of the company) is a Child Company with a Bank of 50% (fifty per100) or less, but the Bank has the control of the company;
C. The company with a Bank entitlement is more than 20% (twenty-perhundred) up to 50% (fifty-perhundred) that meets the requirements:
i. Bank ownership and other parties to the Children ' s Enterprise are each equally