Machine Translation of "The Regulation Of Bank Indonesia No. 10/15/pbi/2008 Year 2008" (Indonesia)

The Regulation Of Bank Indonesia No. 10/15/pbi/2008 Year 2008

Original Language Title: Peraturan Bank Indonesia Nomor 10/15/PBI/2008 Tahun 2008

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SHEET COUNTRY
REPUBLIC OF INDONESIA

No. 135, 2008

(Explanation in Additional State Sheet Republic Indonesia Number 4895)

BANK INDONESIA RULES
NUMBER: 10 /15/PBI/2008
ABOUT
THE GENERAL BANK MINIMUM CAPITAL PROVISION OBLIGATION

WITH THE GRACE OF THE ALMIGHTY GOD

GOVERNOR OF THE BANK OF INDONESIA,

.,, weighed: a. that in order to create a healthy banking system, and be able to develop as well as compete nationally and internationally, the structure, requirements, and calculation of bank capital requirements need to be adjusted to the applicable international standards;

., b. that in line with applicable international standards, the calculation of capital adequentions which serves as a buffer to absorb losses arising from various risks, needs to be adjusted to the risk profile that includes credit risk, risk market, operational risk, and other risks that are material-based;

.,, c. that in line with the development of financial markets, available various financial instrument innovations that can be taken into account as capital;

., d. that based on the terms of the letter a, the letter b, and the letter c, required a return arrangement to the provisions of the General Bank's Minimum Capital Provision Of Provision in the Bank of Indonesia Regulation;

.,, Given: 1. Law Number 7 of 1992 on Banking (Sheet State Republic Of Indonesia 1992 Number 31, Additional Gazette Republic Indonesia Number 3472) as amended by Law Number 10 Year 1998 (sheet of State of the Republic of Indonesia in 1998 Number 182 Supplement of the Republic of Indonesia Indonesia Number 3790);

., 2. Law No. 23 of 1999 on Bank Indonesia (State of the Republic of Indonesia Year 1999 No. 66, Additional Gazette of the Republic of Indonesia Number 3843) as amended by Act No. 3 of 2004 (State Sheet) Republic of Indonesia 2004 Number 7, Additional Gazette of the Republic of Indonesia Number 4357);

DECIDED:

.,, Setting: INDONESIA BANK REGULATIONS ON THE OBLIGATION OF PROVIDING MINIMUM CAPITAL OF PUBLIC BANKS.

BAB I
UMUM PROVISIONS

Section 1

In Regulation of the Bank of Indonesia this is referred to by:

., 1. The 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 office of a foreign bank branch, which carries out conventional business activities.

., 2. A Children's Enterprise is a legal entity or company 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., a. Subsidiary Companies (subsidiary company) ie Children's Enterprise with a Bank entitlement of over 50% (fifty percent);

., b. Participation Company (participation of the company) is a Child Company with a Bank of 50% ownership (fifty percent) or less, but the Bank has control over 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 Enterprise are each equally great; and

.,, 2) each owner performs a mutual control over 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.

., 3. Control is Controlled as provided in the Bank of Indonesia's provisions regarding the transparency of the Bank's financial conditions.

., 4. Credit risk is a risk of loss resulting from a counterparty's failure to fulfill its obligations.

. .5. Market Risk is the risk of loss on the balance sheet position and administrative accounts including derivative transactions due to the overall change of market conditions, including the risk of change in price options.

., 6. Operational Risk is the risk of loss caused by inadequate internal processes, internal process failure, human error, system failure, and/or external events affecting the Bank's operational operations.

., 7. Trading Book is the entire position of financial instruments in its balance sheet and administrative accounts including derivative transactions that are owned for:

., a., 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 wake of the market making, which includes:

.,, 1) a position that is owned for resale in the short term;

.,, 2) a position that is owned for the purpose of actual and/or potential short-term profit of the price movement (price movement); or

.,, 3) a position that is 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.

., 8. Banking Book is all the other positions that are not included in Trading Book.

Section 2

.,, (1) The mandatory bank provides a minimum capital of 8% (eight percent) of weighted assets according to risk (ATMR).

.,, (2) For the Bank that owns and/or performs the Controlling of the Child Company, the obligation as referred to in paragraph (1) applies to the Bank individually and the Bank is consolidated with the Children ' s Company.

.,, (3) In order to anticipate potential losses in accordance with the Bank ' s risk profile, the Bank of Indonesia may require the Bank to provide a minimum capital greater than the provisions as referred to in paragraph (1) and paragraph (2).

(4) The Bank ' s loss points as referred to in paragraph (3) sourced from:

., a., a. The risk of Credit, Market Risk, and Operational Risk that has not been fully measured accurately in performing ATMR calculations as referred to in paragraph (1) and paragraph (2);

., b. Other material risks among other interest rates at Banking Book, liquidity risk, and concentration risk;

C. The impact of stress testing against the Bank's capital adequates; and/or
D. Various other related factors.

., (5) The minimum capital supply as referred to in paragraph (1) is calculated by using the percentage of the minimum capital provision obligation ratio (KPMM).

Section 3

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 to meet the conditions as referred to in Article 2 of the paragraph (1) and the paragraph (2).

BAB II
THE CAPITAL

The First Part
Common

Section 4

.,, (1) Modal as referred to in Section 2 of the paragraph (1) and paragraph (2) for the Bank headquartered in Indonesia consists of:

., a., a. core capital (tier 1);
B. complementary capital (tier 2); and
c. Additional complementary capital (tier 3).
after taking into account the specific factors that are decoding the capital as referred to in Article 13 and Article 20.

.,, (2) In the consolidated capital calculation, the Child Company's capital component that can 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 5

., (1) Modal as referred to in Article 2 of the paragraph (1) for the branch office of a bank whose head office is located outside the country is the clean fund of the headquarters (Net Head Office Fund) which consists of:

., a., a. Fund (Net Inter Office Fund);

., b. profit withheld and profit last year after being issued the influence of factors as referred to in Article 10 of the paragraph (2);

.,, c. the profit of the year runs by 50% (fifty percent) after being issued the influence of factors as referred to in Article 10 of the paragraph (2);

D. capital general reserves;
e. capital destination reserves;

., f. revaluation of fixed assets with scope and calculation as referred to in Section 16 paragraph (1) of the letter c; and

., g. the general backup of the asset removal allowance (PPA) of productive assets by calculation as referred to in Section 16 of the paragraph (1) of the letter d, after taking into account the specific factors that are the parentable of the capital components as set in Article 10 of the paragraph (1) of the letter b, Section 13, and Section 20.

.,, (2) The Account of the Effort as a capital component as referred to in paragraph (1) the letter a is performed as follows:

., a., a. In the event the actual Fund position (actual Dana Effort) is larger than the Specified Entity (declared Fund), then the calculated Fund is the stated Effort.

., b. In the event that the actual Business Fund position is smaller than the stated Business Fund, then what counts is the actual Business Fund.

., c. In the case of the actual negative position of the Effort, the amount is a contributing factor for the capital component as referred to in paragraph (1).

The Second Part
Core Capital

Section 6

.,, (1) the Bank is required to provide the core capital as referred to in Article 4 of the paragraph (1) of the letter a at least 5% (five percent) of ATMR both individually and in consolidation with the Children's Company.

(2) The core modal as referred to in paragraph (1) consists of:

., a., a. deceptor capital;
B. backup additional capital (disclosed reserve); and
c. innovative capital (innovative capital instrument).

Section 7

The capital of the above is as referred to in Section 6 of the paragraph (2) the letter a must meet the following requirements:
a. published and already paid in full;
B. is permanent;

.,, c. is available to absorb losses that occurred 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 8

The non cumulative preferent shares published for special purposes and have a call option feature (call option), can be recognized as a component of the capital's capital as referred to in Section 6 of the paragraph (2) letter a if:

., a., a. satisfy the requirements as referred to in Section 7 of the letter a, letter c, letter d, 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 a term of 5 (five) years since the issuer or the issuer ' s purpose is unimplemented;

3. has obtained the Bank of Indonesia approval; and

.,, 4. does not lead to capital decline under the minimum requirement as referred to in Article 2 of the paragraph (1) and paragraph (2).

Section 9

The repurchase of the recognized shares (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 the minimum requirements as referred to in Section 2 of the paragraph (1) and paragraph (2).

Section 10

., (1) The additional capital (disclosed reserve) as referred to in Section 6 of the paragraph (2) letter b consists of:

., a., 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. Less financial report summation;
8. The capital deposit fund, which meets the requirements as follows:

.,, a) has been fully deployed 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 execution of a common shareholder meeting or the passage of the base budget of the instance Authorized personnel;

.,, b) is placed on a special account (escrow account) which is not given an imbal result;

.,, c) should 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. Warrants were published as an incentive to shareholders of the Bank 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) the value calculated is a reasonable value of the waran at its publishing date;

., 10. The stock options (stock option) are published through the stock-based employee/management (eligibility e/management stock option) compensation program 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 stock option at the date of the compensating date;

B. decoding 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 the asset removal of assets over productive assets and the backup loss of financial asset value over productive assets;

., 7. Less difference between the amount of adjustment to the valuations of the financial instruments in Trading Book and the number of adjustments based on the applicable financial accounting standard.

.,, (2) In the calculation of past years and/or year runs as referred to in paragraph (1) the letters a numeral 5 and 6 must be removed from the influence:

., a., 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. profits on sale of assets in the securitization transaction (gain on sale).

Section 11

.,, (1) the innovative Modal as referred to in Section 6 of the paragraph (2) of the letter c that can be counted as the highest core capital component of 10% (ten percent) of the core capital as referred to in Section 4 of the paragraph (1) letter a.

.,, (2) the innovative Modal as referred to in paragraph (1) must meet the entire requirement as follows:

., a., a. published and already paid in full;

., b. does not have a term and no requirement is required to be softening by the Bank in the future;

.,, c. is available to absorb losses that occurred prior to the liquidation and at the time of liquidation and subordination, which is clearly stated in the issuance of the publishing/agreement;

., d. The acquisition of imbal results is inascerable and cannot be accumulated between periods;

e. neither protected nor guaranteed by the Bank or Children ' s Company;

., f. If it is accompanied by a call option, it must meet the following requirements:

.,, 1. may only be executed at at least 10 (ten) years after the capital instrument is published;

.,, 2. The publishing documentation must specify that the option can only be executed at the approval of the Bank of Indonesia; and

.,, 3. in terms of innovative capital instruments containing a step-up feature, then the step-up feature should meet the requirements as follows:

., a) step-up feature is limited, specified, and expressed clearly in the instrument publishing agreement;

.,, b) may only be realized one time during the instrument period, i.e. after at least 10 (ten) years since publication; and

.,, c) the magnitude of the step-up feature is relevant and in line with market conditions as well as not greater than any of the following limitations:

.,, 1) 100 (hundred) base points; or
2) 50% (fifty percent) of marjin (credit spread) early;

., g. has obtained the Bank of Indonesia ' s approval to be counted as a capital component.

.,, (3) The execution of a (call option) purchase 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., a. have obtained the Bank of Indonesia approval;

., b. does not cause capital decline under the minimum requirements as referred to in Section 2 of the paragraph (1) and paragraph (2); and

c. replaced with a capital instrument that has:

., 1. equal quality or better; and

.,, 2. the same number or different amount of the time not exceeding 10% (ten percent) of the core capital as referred to in Article 4 of the paragraph (1) letter a.

Section 12

.,, (1) In KPMM ' s calculations consolidated, minority interest (minority interest) counts as core capital as referred to in Article 4 of the paragraph (1) letter a unless there is a part of the minority interest that does not in accordance with the requirements of core capital components.

.,, (2) The interest of the minority as referred to in paragraph (1) is not counted in the core capital consolidate if the Bank's ownership of the Child Company 50% (fifty percent) or less and complies with the conditions as follows:

., a., a. no relation/affiliation between the other shareholders (minority interest) with the Bank; or

., b. there are no statements or general meeting decisions (RUPS) of the Children's Company that represents the willingness of other shareholders (minority interest) to support the capital of the Bank's group effort.

Section 13

The core capital as referred to in Article 4 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 20.

The Third Part
Complementary Capital

Section 14

.,, (1) the complementary Modal as referred to in Section 4 of the paragraph (1) the letter b can only be calculated the highest of 100% (one hundred percent) of the core capital as referred to in Section 4 of the paragraph (1) letter a.

(2) The complementary Modal as referred to in paragraph (1) consists of:

., a., a. Upper tier 2 (upper tier 2); and
B. Lower tier 2 (lower tier 2).

Section 15

., (1) the upper tier 2 (upper tier 2) as referred to in Section 14 of the (2) letter of the capital instrument as referred to in Section 16 of the paragraph (1) letter a must meet the entire requirements as follows:

., a., a. published and already paid in full;

., b. does not have a term and no requirement is required to be softening by the Bank in the future;

., c. is available to absorb losses in terms of the number of Bank ' s losses 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 deferred between the (cummulative) period if:

., 1. The payment in question may cause either KPMM individually or KPMM to be consolidated not to meet the applicable provisions;

2. The bank is in a state of loss; or

., 3. The Bank ' s profitability conditions are not possible to pay the imbal of such results;

e. neither protected nor guaranteed by the Bank or Children ' s Company;

., f. If it is accompanied by a call option, it must meet the following requirements:

.,, 1. may only be executed at at least 10 (ten) years after the capital instrument is published;

.,, 2. The publishing documentation must specify that the option can only be executed at the approval of the Bank of Indonesia; and

.,, 3. in terms of capital instruments containing a step-up feature, then a step-up feature should meet the requirements as follows:

.,
., a) step-up feature is limited, specified, and expressed clearly in the instrument publishing agreement;

.,, b) may only be realized one time during the instrument period, i.e. after at least 10 (ten) years since publication; and

.,, c) the magnitude of the step-up feature is relevant and in line with market conditions as well as not greater than any of the following limitations:

.,, 1) 100 (hundred) base points; or
2) 50% (fifty percent) of marjin (credit spread) early;

., 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 the purchase option (call option) as referred to in paragraph (1) the letter f figure 1 and number 2 can only be performed by the Bank throughout:

., a., a. have obtained the Bank of Indonesia approval;

., b. does not cause capital decline under minimum requirements as referred to in Article 2 of paragraph (1) and paragraph (2); or
c. replaced with a capital instrument that has:

., 1. equal quality or better; and

.,, 2. in the same amount or different amount as long as not exceeding the complementary capital constraint as referred to in Article 14 of the paragraph (1).

Section 16
(1) The upper level of the (upper tier 2) level includes:

.,
., a., a. the instrument of capital in the form of a stock or other capital instrument that meets the requirements as referred to in Article 15;

., 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 previously unrealized fixed assets has been classified to the profit balance, by 45% (forty-five percent);

., d. the general backup of the asset removal allowance over the mandatory productive assets was formed at the highest amount of 1.25% (one twenty-five percent comma) of ATMR for Credit Risk;

., 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 gaps that are required to be formed from the limit as referred to in paragraph (1) the letter d may be counted as the ATMR calculation factor for the Risk of Credit.

Section 17

.,, (1) Lower tier 2 (lower tier 2) as referred to in Section 14 of the letter (2) the letter b can only be calculated the highest of 50% (fifty percent) of the core capital as referred to in Section 4 of the paragraph (1) letter a.

., (2) The lower tier 2 (lower tier 2) as referred to in paragraph (1) must fulfill all requirements as follows:

., a., 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. is available to absorb losses at the time of liquidation and is subordinated, which is clearly stated in the issuance of the publishing/agreement;

., d. the principal payment and/or imbal results are suspended and accumulated between the period (cummulative), including payment at the time of the fall, if:

., 1. The payment in question may cause either KPMM individually or KPMM to be consolidated not to meet the applicable provisions;

2. The bank is in a state of loss; or

., 3. The Bank ' s profitability conditions are not possible to pay the imbal of such results;

e. neither protected nor guaranteed by the Bank or Children ' s Company;

., f. If it is accompanied by a call option,, must meet the following requirements:

.,, 1. may only be executed at at least 5 (five) years after the capital instrument is published;

.,, 2. The publishing documentation must specify that the option can only be executed at the approval of the Bank of Indonesia; and

.,, 3. in terms of capital instruments containing a step-up feature, then a step-up feature should meet the requirements as follows:

.,
., a) step-up feature is limited, specified, and expressed clearly in the instrument publishing agreement;

.,, b) may only be realized once during the instrument period, i.e. after at least 5 (five) years since it was published; and

.,, c) the magnitude of the step-up feature is relevant and in line with market conditions as well as not greater than any of the following limitations:

.,, 1) 100 (hundred) base points; or
2) 50% (fifty percent) of marjin (credit spread) early;

., g. has obtained the Bank of Indonesia ' s approval to be counted as a capital component.

.,, (3) The execution of a (call option) purchase 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., a. have obtained the Bank of Indonesia approval;

., b. does not cause capital decline under minimum requirements as referred to in Article 2 of paragraph (1) and paragraph (2); or
c. replaced with a capital instrument that has:

., 1. equal quality or better; and

.,, 2. in the same amount or different amount as long as not exceeding the lower tier (lower tier 2) limit as referred to in Article 17 of the paragraph (1).

., (4) The amount that can be counted as complementary capital lower (lower tier 2) is the number of complementary capital lower (lower tier 2) minus amortization calculated by using straight line methods.

.,, (5) the 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 up until the Bank may execute such options is the remainder of the term of the instrument.

Section 18
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. The issuer of the publisher/publisher Bank.

Section 19
Part of the complementary capital that has been set up (sinking fund) is not counted as a complementary capital component, if the Bank:

., a., a. has set to set aside and manage such a (sinking fund) reserve fund in particular; and

., b. has published the creation of a (sinking fund) reserve, including in the Obligation General Meeting (RUPO).

Section 20

.,, (1) Certain factors that are decoding of the capital components as referred to in Section 4 of the paragraph (1) include:

., a., a. Bank inclusion including:

.,
.,, 1. the entire inclusion of the Bank to the Children ' s Enterprise except for temporary capital inclusion in the framework of a credit restructuring;

.,, 2. the entire inclusion of a company or legal entity with a Bank entitlement of more than 20% (twenty percent) to 50% (fifty percent) but the Bank has no Controlling;
3. All the inclusion of the insurance company;

., b. shortage of capital (shortfall) of the fulfillment of the minimum solvency ratio (Risk Based Capital/RBC minimum) on insurance companies owned and controlled by the Bank;
c. Security exposures.

.,, (2) Deductions as referred to in paragraph (1) letter a and letter b reckoned by 50% (fifty percent) of the core capital as referred to in Section 4 of the paragraph (1) letter a and 50% (fifty percent) of the complementary capital as referred to in Section 4 of the paragraph (1) of the letter b.

.,, (3) The entire capital reduction factor as referred to in paragraph (1) the letter a and the letter b are not taken into account anymore in ATMR for Credit Risk.

The Fourth Part
Additional Complementary Capital

Section 21

.,, (1) additional complementary Modal as referred to in Section 4 of the paragraph (1) letter c may be used throughout the meeting of the criteria as follows:

.,, a) is only used to account for Market Risk;

.,, b) does not exceed 250% (two hundred and fifty percent) of the core capital portion allocated to account for Market Risk; and

.,, c) the amount of complementary capital and additional complementary capital of 100% (one hundred percent) of the core capital as referred to in Article 4 of the paragraph (1) letter a.

.,, (2) additional complementary Modal (tier 3) as referred to in paragraph (1) must meet the following requirements as follows:

., a., 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. is available to absorb losses at the time of liquidation and is subordinated, which is clearly stated in the issuance of the publishing/agreement;

., d. the principal payment and/or imbal results are suspended and accumulated between the period (cummulative), including payment at the time of the fall, if:

.,
., 1. The payment in question may cause either KPMM individually or KPMM to be consolidated not to meet the applicable provisions;
2. The bank is in a state of loss; or

., 3. The Bank ' s profitability conditions are not possible to pay the imbal of such results;

e. neither protected nor guaranteed by the Bank or Children ' s Company;

., f. If it is accompanied by a call option,, must meet the following requirements:

.,
.,, 1. may only be executed at at least 2 (two) years after the capital instrument is published;

.,, 2. The publishing documentation must specify that the option can only be executed at the approval of the Bank of Indonesia; and

.,, 3. in terms of capital instruments containing a step-up feature, then a step-up feature should meet the requirements as follows:

.,
., a) step-up feature is limited, specified, and expressed clearly in the instrument publishing agreement;

.,, b) may only be realized 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 in line with market conditions as well as not greater than any of the following limitations:

.,, 1) 100 (hundred) base points; or
2) 50% (fifty percent) of marjin (credit spread) early;

., 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 c.

.,, (3) The execution of a (call option) purchase 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., a. have obtained the Bank of Indonesia approval; and

., b. does not cause capital decline under the minimum requirements as referred to in Section 2 of the paragraph (1) and paragraph (2).

(4) Additional complementary Modal (tier 3) includes:

., a., 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 complementary capital lower (lower tier 2) that exceeds the lower tier (lower tier 2)limit capital limit.

Section 22
In KPMM's calculations, for example, for innovative capital components, upper tier 2 (upper tier 2), lower tier 2 (lower tier 2), and additional complementary capital (tier 3), the Bank is required to deliver data supporters suggesting that the Group of Child Enterprise ' s capital components are reckoned to have met the entire requirement as a capital component.

BAB III
WEIGHTED ASSETS BY RISK

The First Part
Common

Section 23

ATMR as referred to in Article 2 of the paragraph (1) and paragraph (2) consists of:
a. ATMR for Credit Risk;
B. ATMR for Operational Risk;
C. ATMR for Market Risk.

Section 24

.,, (1) Each Bank is obliged to account for ATMR for Credit Risk and ATMR for Operational Risk.

.,, (2) ATMR for Market Risk is only mandatory to be taken into account by the Bank that meets certain criteria.

Section 25

Certain criteria as referred to in Section 24 of the paragraph (2) are:
a. Banks that individually meet one of the criteria as follows:

., 1. Banks with total assets of Rp10,000.000.000.00 (ten trillion rupiah) or more;

., 2. Bank devisa with the position of financial instruments is a valuable letter and/or derivative transaction in Trading Book of Rp20,000.000.00 (twenty billion rupiah) or more;

., 3. Banks are not a bank of a visa with a position of financial instruments of valuable mail and/or interest transactions in a 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. The bank of the devisa which is consolidated with the Child Company has a financial instrument position of a valuable letter including financial instruments exposed to the risk of Equities and/or derivative transactions in Trading Book and/or instruments The financial risks exposed to the commodity in the Trading Book and Banking Book of Rp20,000.000.00 (twenty billion rupiah) or more;

., 2. Banks are not a Bank of a visa which is consolidated with Child Companies to have a financial instrument position of a valuable letter including financial instruments exposed to the risk of Equities and/or derivative transactions in the Trading Book and/or Financial instruments exposed to the Commodity risk in Trading Book and Banking Book of Rp25.000.000.00 (twenty-five billion rupiah) or more.

., c. The obligation to account for the Market Risk as referred to in Section 24 of the paragraph (2) applies to the Bank that has a network of offices and/or Children's Enterprise in other countries and the branch offices of the Bank whose head office is located in Overseas.

Section 26

Financial assets that at the time of initial recognition are set to be a financial asset measured at a reasonable value through reports of profit and credit profits classified in the traded group excluded from the coverage of Trading Book.

Section 27

The valuable letter in Trading Book as referred to in Article 25 of the letter a number 2 and number 3, the letter b number 1 and number 2 only includes valuable letters classified in the trafficked group.

Section 28

Bank which after the merger, consolidation, or acquisition meets the criteria referred to in Section 25, at least 3 (3) monthly reporting periods in 6 (six) of the first month after the merger, consolidation, or acquisition is stated Effectively counts the Market Risk in KPMM calculations from month to 7 (seven) after mergers, consolidation, or acquiring is declared effective.

Section 29

A bank that has met the criteria referred to in Section 25 and the Bank as referred to in Article 28 is required to account for the Market Risk in the obligation of the minimum capital, even though the Bank is no longer meeting the criteria. intended.

The Second Part
The risk of Credit

Section 30

(1) In ATMR calculation for Credit Risk, the Bank uses:

., a., a. Standard approach (Standardized Approach); and/or
B. Approach by 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) Further arrangements on the use of each approach as referred to in paragraph (1) and paragraph (2) are further regulated in the Indonesian Bank Circular Letter.

The Third Part
Operational Risk

Section 31

(1) In ATMR calculation for Operational Risk, the Bank uses:

., a., 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 approval first from the Bank of Indonesia.

.,, (3) Further arrangements on the use of each approach as referred to in paragraph (1) and paragraph (2) are further regulated in the Indonesian Bank Circular Letter.

The Fourth Part
Market Risk

Section 32

.,, (1) The Market Risk is required to be counted by the Bank individually and consolidated with the Children ' s Company is:

., a., 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., a. has Children ' s Enterprise exposed to equity risk and/or commodity risk; and

., b. Consolidated with the Children's Enterprise meets the criteria referred to in Article 25 of the letter b.

Section 33

(1) In ATMR calculations for Market Risk, the Bank uses:

., a., a. Standard Method (Standard Method); and/or
B. Internal Model (internal Model).

.,, (2) The Bank that meets the criteria as referred to in Article 25, 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 approval first from the Bank of Indonesia.

.,, (4) Further arrangements regarding the use of each method as referred to in paragraph (1) and paragraph (2) are set in the Indonesian Bank Circular Letter.

BAB IV
REPORTING

Section 34

.,, (1) The Bank that meets the criteria as referred to in Article 25 is required to deliver a KPMM calculation report by taking into account the Market Risk.

.,, (2) The drafting 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 the first set up at the end of the quarterly after the Internal Model is used for KPMM calculations.

BAB V
THE TRANSITION PROVISION

Section 35

Capital instruments that have been approved by the Bank of Indonesia as complementary capital components and or additional complementary capital components prior to the effective provision of these provisions remain counted as capital components up to the end of the term The instrument.

BAB VI
THE SANCTION

Section 36

A bank that commits a breach of the provisions as set out in Section 3, Section 6 of the paragraph (1), Section 9, Section 11 of the paragraph (1) and paragraph (3), Article 15 of the paragraph (2), Article 14 of the paragraph (1), Section 17 of the paragraph (1) and the paragraph (3), Section 21 of the paragraph (1) and the paragraph (3), Section 8 of the paragraph (1), Section 11, Section 11, Section 11, Section 11 22, Section 24, Article 28, Section 29, Section 30, Article 31, Section 32 and Article 33 are subject to administrative sanction:
a. written reprimand;
B. freezing of certain business activities;
c. decrease the Bank ' s health level; dan/or

., d. The inclusion of the administrator and of the bank in the list of people who are prohibited to be a shareholder and a bank administrator, as referred to in Article 52 of the Law Number 7 of 1992 on Banking as amended by the Act Number 10 Year 1998.

Section 37

Banks that are not able to meet the provisions referred to in Section 2 of the paragraph (1) and paragraph (2) are placed in special oversight as set forth in the Bank of Indonesia provision regarding the follow-up oversight and the designation of the Bank status.

Section 38

The bank that violates the reporting provisions as referred to in Article 34 is subject to sanctions as set forth in the applicable provisions of the General Bank Terms of Time.

Section 39

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, sanctions are not allowed to group the next purchase of financial assets in a group available for sale, for 6 (six) months from the date of release of the coaching letter by the Bank. Indonesia.

Section 40

In the event the Bank performs an act as referred to in Article 39 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 41

In the event the Bank commits an act as referred to in Article 39 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 42

Provisions regarding the treatment of the Bank's placement in the form of subordinated loans or subordinated bonds as a sacrifice factor for subordinated loans or subordinated bonds to the Bank, which are also issuers in question. Section 18, apply to the placement made after this provision applies.

Section 43

With the enactment of this Bank of Indonesia Regulation, then:

., a., a. Indonesia Bank Regulation No. 3/21/PBI/2001 dated December 13, 2001 on Obligation Of Provision Of The Minimum Capital Bank;

., b. Article 6 and Section 7 of the Bank of Indonesia Regulation Number 8/6/PBI/2006 dated January 30, 2006 on the Implementation of Risk Management Consolidated for the Bank to conduct the Controlling of the Children's Enterprise;

., c. Section 2, Section 3, Section 4, Section 5, Section 7, Section 8, Article 10, Section 18, Section 31, Section 31, Section 34, Section 35, Section 36, Section 36, and Section 37 of the Indonesian Bank Regulation Number 9/13/PBI/2007 date November 1, 2007 on the Liability of the Public Bank Minimum Capital by calculating the Market Risk;

., d. Figures III of Indonesia Bank of Indonesia Number 26 /1/BPPP dated 29 May 1993 subject to the Liability of the Minimum Capital for the General Bank,

revoked and declared not valid.

Section 44

With the enactment of this Bank Indonesia Regulation then:

., a., a. Indonesia Bank Regulation Law Number 9/13/PBI/2007 dated November 1, 2007 on the Liability of the Public Bank Minimum Capital by taking into account the Market Risk;

., b. Indonesia Bank Regulation Resolution 8/6/PBI/2006 dated January 30, 2006 on the Consolidated Risk Management Application for the Bank to conduct the Controlling of Children's Enterprise;

stated it still remains in effect as long as it does not conflict with this Bank of Indonesia Regulation.

Section 45

The Bank of Indonesia's regulations entered into force on 1 January 2009.

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 September 24, 2008
INDONESIAN BANK GOVERNOR,

Boediono.

Promulgated in Jakarta
On September 24, 2008
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA

ANDI MATTALATA

ADDITIONAL
STATE SHEET RI

No. 4895

(explanation Of State Sheet 2008 Number 135)

EXPLANATION
Above
BANK INDONESIA RULES
NUMBER: 10 /15/PBI/2008
ABOUT
PUBLIC BANK MINIMUM CAPITAL PROVISION OBLIGATION

UMUM

.,, in order to create a healthy banking system and be able to develop as well as compete nationally and internationally, the structure, requirements, and calculation of bank capital adequates need to be adjusted to the prevailing international standards. The International convergence of Capital Measurement and Capital Standards: A Revised Frameworkor better known as Basel II and the International Accounting Standard (IAS). which is adopted in the Financial Accounting Standards Statement (PSAK) i.e. among other IAS 39 adopted in PSAK No. 55.

.,, calculation of capital adequates is one of the fundamental aspects of the exercise of prucency principles. Capital serves as a buffer to absorb losses arising from various risks. Therefore, in the calculation of capital adequates as per international standard, the Bank needs to adjust the adequate of such capital to the Bank's risk profile that includes credit risk, market risk, operational risk, and other risk-of-life. The material is either quantitatively measured or based on a qualitative assessment.

., Moreover, the financial markets in the world are increasingly experiencing rapid development. The development of financial markets led to the availability of a wide range of financial instrument innovations that could be taken into account as capital.

., on the other hand, the current terms associated with the capital adequate are still spread out on several separate provisions, so as to make it easier for users to understand the need to merge such arrangements into one Provisions.

.,, In relation to such matters, then it needs a re-setting to the provisions of the Public Bank ' s Compulsory Minimum Capital Provision Obligation in an Indonesian Bank Regulation.

SECTION BY SECTION

Section 1

.,, pretty clear.

Section 2

.,, Verse (1)

.,, weighted Assets according to risk (ATMR) includes ATMR for Risk Credit, ATMR for Market Risk, and ATMR for Operational Risk.
Verse (2)

., clear enough.
Verse (3)

.,, pretty clear
Verse (4)

.,, the letter a

.,, the risk of not being fully measured accurately among others is caused by the weakness of risk control systems for Credit Risk, Market Risk, and Operational Risk.
Letter b

., clear enough.
Letter c

., clear enough.
Letter d

.,, pretty obvious.

Verse (5)

.,, Ratio KPMM represents a comparison between capital with ATMR.
The ratio of KPMM is consolidated by comparing capital consolidation with the consolidation of ATMR.

Section 3

.,, referred to with the profit distribution among other dividend payments, the bonus payment to the administrator (management fee).

Section 4

.,, pretty clear.

Section 5

.,, Verse (1)

.,, the letter a

.,, the Venture Fund refers to the provisions of the Bank of Indonesia regarding the requirements and manners of the opening of the branch office, the office of the assistant branch, and the representative office of a foreign-based bank.
The fund is a net fund derived from the Bank's headquarters in the office of a foreign bank branch after it was reduced to the office of a foreign bank office in the offices of the bank concerned abroad, which must always be recorded during the time. The foreign bank branch office operates in Indonesia and has been declared (declared Fund Effort).
Letter b

., referred to as "withheld earnings" is the net profit balance after minus the tax which by its headquarters is decided to be held at its branch office in Indonesia.
What was meant by "earnings last year" was a whole net profit years ago after minus taxes, and has not been established its use by the headquarters.
In terms of the Bank having the balance of losses in the past year, all of these losses were a contributing factor to the capital.
Letter c

.,, referred to as "walking year profit" is the profit earned in the year the book runs after minus the tax estimate.
In terms of the year the Bank's run book suffered a loss, then the whole loss was a capital sacrifice factor.
Letter d

., referred to as "capital general reserve" is a reserve formed from a retained earnings group or from last year's profits after minus taxes, and obtained its headquarters approval as a capital reserve of capital.
Letter e

., referred to as "capital destination reserve" is a reserve formed from a withheld profit allowance or from last year ' s profits after minus the tax set aside for a specific purpose and has obtained its head office approval.
Letter f

., clear enough.
The letter g

.,, pretty obvious.

Verse (2)

.,, the Redemption of the amount of the Effort Fund stated in reference to the provisions of the Bank of Indonesia in effect on foreign loans.

Section 6

.,, Verse (1)

.,, pretty clear
Verse (2)

.,, the letter a

.,, the Treatment as a component capital component refers to the applicable laws and applicable financial accounting standards regarding equity accounting.
That includes the paid capital among others:
1. ordinary shares;

.,, 2. shares preferent (which gives the holder the right to receive dividends first than any other classification shareholder) non cumulative (Perpetual non cummulative preference share); or
3. Non cumulative preferent shares published for special purpose with call option.
Letter b

., clear enough.
Letter c

.,, referred to as "innovative capital" is a debt instrument that has a modal characteristic (instrument hybrid).
Innovative capital includes:

., 1. Debt instruments that have capital characteristics, are subordinated, do not have a timeframe, and the payment of imbal results cannot be accumulated (Perpetual non cummulative subordinated debt).

., 2. Other hybrid instruments that do not have a timeframe and imbal payments results cannot be accumulated (perpetual and non cummulative).

Article 7

.,, the letter a

., clear enough.
Letter b

., clear enough.
Letter c

., clear enough.
Letter d

., clear enough.
Letter e

., including in the protected and protected category by the Bank or Children 's Enterprise namely protection and warranty received from other parties but done through the Bank or Children' s Enterprise, e.g. premiums/fees in the framework of the copying paid for by the Bank or Children ' s Company.

Article 8

., including as a special purpose namely for the purpose of mergers, acquisitions, or consolidation.

Article 9

.,, the letter a

.,, pretty clear
Letter b

.,, a specific purpose to repurchase the recognized stock as a component capital, i.e., stock stock in order to program employee/management stock options or avoid take over.
Letter c

.,, pursuant to Act No. 40 of 2007 on the current Limited Perseroan Act stated that the nominal value of all shares bought back by the company did not exceed 10% (ten percent) of the capital it was placed in. The repurchased shares can only be controlled by the longest 3 (three) years.
Letter d

., clear enough.
Letter e

.,, pretty clear

Article 10

.,, Verse (1)

.,, the letter a

.,, Figure 1

., referred to as "agio" is the more capital difference received by the Bank at the time of the issuer ' s issuer because the stock market price is higher than the nominal value.
Number 2

., referred to as "donation capital" is the capital reacquired from the Bank ' s share donations including the difference between the value recorded at the sale price if the shares are sold.
Figure 3

., referred to as "capital general reserve" is a backup set up of a withheld profit or from a profit last year after minus taxes, and obtained a general meeting agreement (RUPS) or member meeting as a General reserves of capital.
Figure 4

., referred to as "capital destination backup" is a backup set up of a retained profit or from a profit last year after minus the tax set aside for a particular purpose and has obtained a RUPS approval or a meeting Members.
Number 5

.,, Laba past years after the tax reckoned included:

., a., a. Last year's profit, the entire net profit years ago after minus taxes, and it has not been specified for use by the RUPS or the members meeting;

., b. earnings withheld (retained earnings) i.e. net profit balance after deductless tax that the RUPS or members meeting was decided not to share.

Figure 6

., referred to as "walking year profits" are the profits earned in the year the book runs after minus the tax estimates.
Figure 7

., referred to by the "lack of financial statements margin" is the difference in kurs arising from the definitions of the Bank and/or Children's subsidiaries ' financial statements abroad as set out in financial accounting standards. It applies to the sum of the financial statements in the foreign currency.
Figure 8

.,, if based on Bank Indonesia research, the prospective shareholder of a bank or capital fund is known to not qualify as a shareholder or as capital then the funds cannot be recognized as a capital component.
Figure 9

., Refers to the generally applicable definition in the capital market, referred to as "waran" is an effect published by a company that gives the holder the right to order shares of the company on price and term It's time.
Figure 10

.,, pretty obvious.

Letter b

.,, Figure 1

., referred to as "disagio" is the less-paid difference of capital received by the Bank at the time of the issuer ' s issuer because the stock market price is lower than the nominal value.
Number 2

., which referred to the "loss of the past years" was the entire loss of the bank in the past years.
Figure 3

., referred to as the "walking year loss" is the loss of the Bank in the year of the walking book.
Figure 4

., referred to by the "lack of financial statements margin" is the difference in kurs arising from the definitions of the Bank and/or Children's subsidiaries ' financial statements abroad as set out in financial accounting standards. It applies to the sum of the financial statements in the foreign currency.
Number 5

.,, another comprehensive income negative is a post in equity that aims to accommodate a reasonable drop in value for inclusion in groups available for sale.
The "inclusion of classified in groups available for sale" is a stock inclusion that meets the criteria for the use of the cost method and has a reasonable value.
Figure 6

., referred to as "less difference between the asset removal allowance over productive assets and the backup loss of financial asset value over productive assets" is the difference between the total allowance of an asset (general reserve). and special reserves of all productive assets) that are required to be formed under the terms of the Bank of Indonesia that applies to the total reserve loss of the value of financial assets (impairment) over all productive assets (individually and collectively, the total number of assets). collective) according to the applicable financial accounting standards.
Figure 7

.,, less this difference arises due to the amount of adjustment to the (mark to market) of financial instruments in Trading Book which considers various specific factors among others due to less position. likuid, exceeding the amount of customization required according to the applicable financial accounting standards regarding the measurement of financial instruments, in particular the financial instruments measured by reasonable value.
As per the Indonesia Banking Accounting Guidelines (PAPI), the adjustment to the financial instrument valuation will directly reduce or increase the value of the financial instrument.

Verse (2)

.,, the letter a

.,, the toughness tax (deferred tax) is a transaction arising as a result of the application of the PSAK regarding income tax accounting.
In KPMM calculations individually influence the toughness tax incurred by net difference of the toughness tax assets minus the toughness tax liability obligations.
In the event the liability tax liability exceeds the toughness tax assets, then the influence of the toughness tax calculation that will be removed from last year or year-loss profits is at zero.
In a consolidated KPMM calculation, the one company 's toughness tax assets should not be removed with other corporate toughness tax liabilities in the Bank' s venture group.
Therefore, the influence of the toughness tax in the KPMM calculation is consolidated must be calculated and issued separately for each entity.
With the release of the toughness tax impact of profit or loss calculations, the toughness of the toughness tax assets is not taken into account in ATMR calculations.
Letter b

., referred to as "fixed asset revaluation value difference" is a difference in fixed asset revaluation of fixed assets to the profit balance in terms of the Bank doing a fixed asset revaluation before the PSAK 16 was enacted and subsequently used the method expenses in fixed asset measurement.
Included in this component are the more revaluation of fixed assets remaining in the implementation of the reorganization's quasi.
Letter c

.,, the Treatment is reserved for the Bank that uses a fixed asset revaluation model as set out in PSAK 16 about Fixed Assets.
The value of the asset's reasonable value remains in reference to the applicable financial accounting standards regarding fixed assets.
Letter d

.,, this happens if the Bank sets out to measure financial liability at a reasonable value through a valid (fair value option) according to the applicable financial accounting standard.
Letter e

., referred to as "the advantage over sale of assets in the securitization transaction (gain on sale)" is the advantage the Bank acquired as a (originator) creditor of asset sales in the securitization transaction (gain on sale) which is sourced from future income capitalization (expected future margin) or the revenue capitalization of the services provision (servicing income).

Article 11

.,, Verse (1)

., clear enough.
Verse (2)

.,, the letter a

.,, pretty clear
Letter b

., clear enough.
Letter c

., clear enough.
Letter d

., clear enough.
Letter e

., including in the protected and protected category by the Bank or Children 's Enterprise namely protection and warranty received from other parties but done through the Bank or Children' s Enterprise, e.g. premiums/fees in the framework of the copying paid for by the Bank or Children ' s Company.
Letter f

.,, Figure 1

., clear enough.
Number 2

., clear enough.
Figure 3

.,, referred to a step-up feature is a feature that promises interest rate hikes if the buy option is not executed at a set time frame.

.,, font a)

., clear enough.
Letter b)

.,, pretty clear
Letter c)

.,, referred to as "marjin (credit spread)" is the difference between an imbal level of the result/the instrument interest is referred to the interest rate of the instrument not at risk (risk free).
Step-up -step-up arrangement based on step-up agreement is as follows:
1. Step-up of fixed interest rates (fixed interest rates)

.,, Example:

., a., a. step-up that can be realized after 10 years of publishing not memore 100 bp (100 bp = 1%)

., * * previous interest rates (year 1-10) = 7% fixed interest rate
* New interest rates (from year 11) = 7% + 1% = 8% fixed interest rate

., b. step-up that can be realized after 10 years of publishing no memore 50% (fifty percent) of margin (credit spread) early

., * * previous interest rates (year 1-10) = 7% fixed interest rate

.,, for example, at the time of publication, the non-risk instrument rate (risk free) = 6%, then 50% (fifty percent) of margin (credit spread) the beginning is 50% x (7%-6%) = 0.5%
* New interest rates (from year 11) = 7% + 0.5% = 7.5% fixed interest rate

2. Step-up of floating interest rates (floating interest rates)

., There are 2 examples:
a. If reference rate does not change

.,
.,, 1) step-up that can be realized after 10 years of publishing no memore 100 bp

.,
.,, * Previous interest rates (year 1-10) = 10 year Govt ' Bond + spread 1.5% (spread at the time of instrument issuer)

.,, * new interest rates (since 11th year) = 10 year Govt ' Bond + spread 2.5% (spread early 1.5% + 1%)

.,, 2) step-up that can be realized after 10 years of publishing no memore 50% (fifty percent) of margin (credit spread) beginning

.,
.,, * Previous interest rates (years 1-10) = 10 year Govt ' Bond + spread 1.5% (spread at the time of instrument publishing) = 7%

.,, for example with an instrument interest rate that is not at risk (risk free) = 6%, then 50% (five-percent) of the margin (credit spread) the beginning is 50% x (7%-6%) = 0.5%

.,, * new interest rates (since 11th year) = 10 year Govt ' Bond + spread 2% (spread early 1.5% + 0.5%)

B. If reference rate changes

.,
., 1) step-up that can be realized after 10 years of issuer does not exceed 100 bp

.,, increased interest rates should not exceed 1% (one percent) of spread early (at the time of instrument issuer) by using reference rate new compared to reference rate at the time of the instrument issuer.
For example, reference rate of 10-year Gov't Bond changes to LIBOR
* Previous interest rates (year 1-10)

.,, the Asumption at the time of publishing interest instruments was 7% (10 year Gov't Bond 5% plus spread 2%). While at the same time, LIBOR 5.5%. Thus, spread LIBOR at the time of the interest rate of 7% is 1.5% (7%-5.5%).

.,, * new interest rates (since 11th) = LIBOR + spread 2.5% (spread early 1.5% + 1%)

.,, 2) step-up that can be realized after 10 years of publishing not exceeding 50% (fifty percent) of margin (credit spread) early

.,, increased interest rates should not exceed 50% (fifty percent) marjin (credit spread) the beginning of spread early (at the time of instrument publishing) with reference rate new compared to reference rate at at the instrument publishing.
For example, reference rate of 10-year Gov't Bond changes to LIBOR
* Previous interest rates (year 1-10)

.,, the Asumption at the time of publishing interest instruments was 7% (10 year Gov't Bond 5% plus spread 2%). While at the same time, LIBOR 5.5%. Thus, spread LIBOR at the time of the interest rate of 7% is 1.5% (7%-5.5%).
For example with an instrument interest rate that is not at risk (risk free)= 6%, then 50% (fifty percent) of the margin (credit spread) the beginning is 50% x (7%-6%) = 0.5%.

.,, * new interest rates (since 11th) = LIBOR + spread 2% (spread early 1.5% + 0.5%)

.,, 3) step-up with a change from interest rates remain a floating flower tribe

.,
., a., a. step-up that can be realized after 10 years of issuer does not exceed 100 bp

.,, increased interest rates should not exceed 1% (one percent) of spread early (at the time of instrument issuer) with floating interest rates used after the 10th year compared with interest rates at the time instrument publishing.
For example, change from fixed rate to floating rate (LIBOR +Spread)
* Previous interest rates (year 1-10) = 7% fixed rate

.,, Assumption LIBOR 5.5% at the time of the instrument issuer. As such, at the 7% interest rate, spread of LIBOR is 1.5%.

.,, * new interest rates (since 11th) = LIBOR + spread 2.5% (spread early 1.5% + 1%).

., b. step-up that can be realized after 10 years of publishing does not exceed 50% (fifty percent) of margin (credit spread) early

.,, increased interest rates should not exceed 50% (fifty percent) marjin (credit spread) early (at the time of instrument publishing) with floating interest rates used after the 10th year compared with interest rates. at the time of the instrument publishing.
For example, change from fixed rate to floating rate (LIBOR +Spread)
* Previous interest rates (year 1-10) = 7% fixed rate

.,, Assumption LIBOR 5.5% at the time of the instrument issuer. Thus, in the interest rate of 7% then spread of LIBOR is 1.5%.
For example with an instrument interest rate that is not at risk (risk free)= 6%, then 50% (fifty percent) of marjin (credit spread) the beginning is 50% x (7%-6%) = 0.5%
* New interest rates (since 11th) = LIBOR + spread 2% (spread early 1.5% + 0.5%).

The letter g

.,, pretty clear

Verse (3)

.,, the letter a

., clear enough.
Letter b

.,, pretty clear
Letter c

.,, Figure 1

.,, Which is referred to the same or better quality is the capital ' s most underqualified instrument as an innovative capital component.
Number 2

.,, the core modal is the core capital at the time of the replacement.
The 10% (ten percent) limit of core capital is taken into account with regard to the entire innovative capital instrument available.
Examples of "different numbers" are as follows:
For example, the innovative capital that was executed was Rp100,000,000,-(one hundred million rupiah), but at the time of the replacement, the core capital of the Bank underwent a change so that the limitation of innovative capital for example being the highest of Rp150,000,000,-(a hundred fifty-five million rupiah).
Under this condition, the Bank may replace an innovative capital of Rp150,000,000,-(one hundred and fifty million rupiah).

Article 12

.,, Verse (1)

.,, the core capital component requirement refers to the requirements regarding the capital of the above and the additional capital reserve (withheld profits and year running profits).
Verse (2)

.,, pretty clear

Article 13

.,, the letter a

., in accordance with applicable financial accounting standards, goodwill represents a more difference between the acquisition cost and the company ' s part of the acquisition of the reasonable value of the assets and liabilities that can be identified on the exchange date of the exchange.
Goodwill is calculated as a containment factor only in the calculation of KPMM Bank consolidate.
Letter b

., including as other intangible assets among other copy right, patent rights, and other intellectual property right .

Letter c

.,, pretty clear

Section 14

.,, pretty clear.

Article 15

.,, Verse (1)

.,, the letter a

.,, pretty clear

Letter b

., clear enough.

Letter c

., clear enough.

Letter d

., clear enough.

Letter e

., including in the protected and protected category by the Bank or Children 's Enterprise namely protection and warranty received from other parties but done through the Bank or Children' s Enterprise, e.g. premiums/fees in the framework of the copying paid for by the Bank or Children ' s Company.

Letter f

.,, Figure 1

., clear enough.

Number 2

., clear enough.

Figure 3

.,, referred to a step-up feature is a feature that promises interest rate hikes if the buy option is not executed at a set time frame.

.,, font a)

., clear enough.

Letter b)

.,, pretty clear

Letter c)

.,, referred to as "marjin (credit spread)" is the difference between an imbal level of the result/the instrument interest is referred to the interest rate of the instrument not at risk (risk free).
The big step-up refers to the illustration expressed in the explanation of Article 11 of the verse (2) the letter f 3 letter c).

The letter g

.,, pretty obvious.

Verse (2)

.,, the letter a

., clear enough.

Letter b

., clear enough.

Letter c

.,, Figure 1

.,, which is referred to the same or better quality is the most underqualified capital instrument as the top level complementary capital component of (upper tier 2).

Number 2

.,, the limitations of complementary capital are taken into account with regard to all complementary capital instruments which are available either upper tier (upper tier 2) or lower level lower (lower tier 2).
Examples of "different numbers" are as follows:
For example, the executed complement capital was Rp500,000,000,-(five hundred million rupiah), but at the time of the replacement, the core capital of the Bank underwent a change so that the limitation of complementary capital for example being the highest of the Rp400,000,000,- (four hundred million rupiah).
Under this condition, the Bank may replace a complementary capital of Rp400,000,000,-(four hundred million rupiah).

Section 16

.,, Verse (1)

.,, the letter a

.,, Sample "capital instruments in the form of stock or other capital instruments that meet the requirements as referred to in Article 15" are:

., 1. Preferent shares (which give the holder the right to receive dividends first than other classification shareholders) are cumulatively (Perpetual cummulative preference share);

., 2. Debt instruments that have modal characteristics, are subordinated, do not have a term, are cumulative and meet the entire requirement to be reckoned as the top-level complementary capital component (Perpetual cummulative subordinated debt);

., 3. Debt instruments that have characteristics such as capital that are automatically without the requirement can be converted to stock and after obtaining the Bank Indonesia (Mandatory convertible bond).
The condition and value of the conversion must be set at the time of publication whose magnitude is in line with the market conditions.

Letter b

.,, referred to as "part of an innovative capital that cannot be taken into account in core capital" is the difference in more capital instruments that meet the requirements as an innovative capital component of the 10% (ten percent) limit of core capital.

Letter c

.,, Figure 1

.,, the difference in revaluation of fixed assets on this figure has previously been excluded from last year ' s profit/loss calculation which is a core capital component.
This treatment is reserved for the Bank that revaluation of fixed assets prior to PSAK 16 (Revision) of Fixed Fixed Assets and subsequently using the cost method in fixed asset measurement.
The difference in revaluation of fixed assets is after tax counts.

Number 2

.,, a reasonable value increase in fixed assets on this number has previously been excluded from last year ' s profit and/or laba/loss calculations that are core capital components.
This treatment is reserved for the Bank that uses a fixed asset revaluation model as set out in PSAK 16 on Fixed Assets.

Letter d

.,, the Establishment of a general reserve of asset removal of assets over a mandatory productive asset is formed in reference to the Bank of Indonesia regarding the quality of the assets.
Example:
General reserves of asset removal of assets over a mandatory productive asset of Rp15,000,000,-(fifteen million rupiah) and ATMR Bank for Credit Risk of Rp1,000,000,000,-(one billion rupiah).
The general reserves that can be counted as top-level complement capital components are at least 1.25% x Rp1,000,000,000,-= Rp12,500,000,-(twelve million five hundred thousand rupiah).
In this case there is a general reserve advantage of Rp2,500,000,-(two million five hundred thousand rupiah) that cannot be counted as the upper level of the upper tier (upper tier 2).

Letter e

.,, the intended inclusion of a classified group available for sale is a stock inclusion that meets the criteria of the cost method and has a reasonable value.

Verse (2)

.,, the redundant general reserve elimination of assets over productive assets in an example of an explanation of the d-letter (1) letter d of Rp2,500,000,-(two million five hundred thousand rupiah) was an ATMR calculation factor for the Risk of Credit.

Section 17

.,, Verse (1)

., which includes the lower tier (lower tier 2) capital component of (lower tier 2) among others:

., a., a. preferen shares that can be retracted after a specified length (Redeemable Preference Shares);
B. Subordinated loans or subordinated bonds.

Verse (2)

.,, the letter a

., clear enough.
Letter b

., clear enough.
Letter c

., clear enough.
Letter d

., clear enough.
Letter e

., including in the protected and protected category by the Bank or Children 's Enterprise namely protection and warranty received from other parties but done through the Bank or Children' s Enterprise, e.g. premiums/fees in the framework of the copying paid for by the Bank or Children ' s Company.
Letter f

.,, Figure 1

., clear enough.
Number 2

., clear enough.
Figure 3

.,, referred to "step-up feature" is a feature promising interest rate rise if the buy option is not executed at a fixed term.

.,, font a)

., clear enough.
Letter b)

., clear enough.
Letter c)

.,, referred to as "marjin (credit spread)" is the difference between an imbal level of the result/the instrument interest is referred to the interest rate of the instrument not at risk (risk free).
The step-up threshold calculation refers to the illustration in an explanation of Article 11 of the verse (2) the letter f 3 letter c).

The letter g

.,, pretty clear

Verse (3)

.,, the letter a

., clear enough.
Letter b

., clear enough.
Letter c

.,, Figure 1

.,, which is referred to the same or better quality is the most underqualified capital instrument as the requirement for lower tier (lower tier 2)capital components.
Number 2

.,, lower tier 2 complementary capital limitation (lower tier 2) is taken into account with regard to all available lower tier (lower tier 2) instruments.
available. Examples of "different numbers" are as follows:
For example the complement capital executed is Rp200,000,000,-(two hundred million rupiah), but at the time of replacement, the Bank's core capital underwent a change so that lower tier 2's complementary capital limits (lower tier 2) for example being the most height of Rp100.000,000,-(a hundred million rupiah).
Under this condition, the Bank may replace the lower tier 2 (lower tier 2) of only Rp100,000,000,-(one hundred million rupiah).

Verse (4)

.,, Which is referred to amortization using a straight line method is prorated amortization.

Verse (5)

.,, Amortization is calculated based on the value of the capital instrument that has taken into account the reduction of the repayment reserve (sinking fund).

Verse (6)

., Illustration of amortization execution:
Example 1:
The Bank publishes subordinated bonds that have a term of 10 (ten) years and have a buy option at the end of the year to 5.
Under these conditions, the Bank is obliged to start counting amortization since the first year.
If at the end of the fifth year, the Bank does not execute its purchase option then beginning the year to 6 such subordination bonds can be taken into account again in the calculation of the KPMM with regard to the limits required including the obligation. to account for amortization.
Example 2:
The Bank publishes subordinated bonds that have a term of 10 (ten) years and have a purchasing option after the end of the year to 5.
In this condition then the remainder of the term of the instrument at the beginning of the publication is 5 (five) years. Mandatory amortization has been taken into account by the Bank since its first year.
After the end of the fifth year until the end of the year, the Bank was unable to take into account the subordination bonds for lower tier 2 (lower tier 2), even though the bank had not yet executed the purchase option.

Article 18

.,, the subordination loan value or subordination bonds of the reduced issuer bank is after taking into account the repayment reserve (sinking fund).
Example:
Bank A publishes an instrument that is included as a complementary capital component under (lower tier 2) of a Rp100 billion subordination bond.
Bank A also acquired complementary capital instruments in terms of subordinated bonds (both of which included top-level complementary capital and lower-level complementary capital) issued by Bank B of Rp20 billion.
In this condition, subordination bonds that can be counted as complementary capital components under (lower tier 2) by Bank A only amounted to Rp100 billion-Rp20 billion = Rp80 billion, which is further adjusted to the limit Lower tier 2 (lower tier 2) may be used.

Section 19

.,, pretty clear.

Section 20

.,, Verse (1)

.,, the letter a

.,, the inclusion value calculated is the value of the book recorded on the balance sheet.

Letter b

.,, the shortfall of (shortfall) is taken into account as a containment factor only in the calculation of KPMM consolidly.
Lack of capital (shortfall) a company performing an insurance venture activity from RBC minimum is taken into account if the company is intended to be unable to meet the minimum RBC until the timeframe is set by the supervising authority authorized.
The Bank-controlled insurance company refers to the definition of Controlling as referred to in this provision.

Letter c

.,, Treatment of the exposures of securitization as capital reduction refers to the Bank of Indonesia provision regarding the securitization of assets.
In question, "securitization exposure" is the supporting credit of (credit enhancement), the liquidity facility (liquidity support), and the asset-backed securities (asset-backed securities).

Verse (2)

.,, pretty clear

Verse (3)

.,, pretty clear

Section 21

.,, Verse (1)

.,, the letter a

., clear enough.

Letter b

.,, with this setting then the core capital must be allocated to the risk of the market at least 28.5% (twenty-eight commas five percent) of capital burden for Market Risk.

Letter c

.,, pretty obvious.

Verse (2)

.,, the letter a

., clear enough.

Letter b

., clear enough.

Letter c

., clear enough.

Letter d

., clear enough.

Letter e

Letter f

.,, Figure 1

., clear enough.

Number 2

., clear enough.

Figure 3

.,, referred to a step-up feature is a feature that promises interest rate hikes if the buy option is not executed at a set time frame.

.,, font a)

., clear enough.

Letter b)

., clear enough.

Letter c)

.,, referred to as "marjin (credit spread)" is the difference between an imbal level of the result/the instrument interest is referred to the interest rate of the instrument not at risk (risk free).
The step-up threshold calculation refers to the illustration in an explanation of Article 11 of the verse (2) the letter f 3 letter c).

The letter g

.,, pretty clear

Verse (3)

., clear enough.

Verse (4)

.,, the letter a

., clear enough.

Letter b

.,, complementary capital benefits (tier 2) as additional complementary capital components (tier 3) pay attention to the limitations of the number of complementary capital (tier 2) and additional supplementary capital (tier 3).

Letter c

., referred to as "part of the lower tier 2 below (lower tier 2) that exceeds the lower tier (lower tier 2) limits" is the difference in more capital instruments that meet the requirements as capital components Lower tier 2 (lower tier 2) of the 50% limit (fifty percent) of core capital.

Article 22

.,, the supporting document is the completeness to indicate that the requirements as set out in these provisions have been met.

Section 23

.,, pretty clear.

Section 24

.,, pretty clear.

Section 25

.,, pretty clear.

Article 26

.,, Treatment of recognition and measurement refers to the Financial Accounting Standards Statement (PSAK) No. 55 (Revision 2006) regarding Financial Instruments: Recognition and Measurement.

Section 27

.,, pretty clear.

Article 28

.,, Example 1:
Prior to the merger or consolidation, Bank A and Bank B did not meet the criteria to account for Market Risk.
For 6 (6) months after the merger or consolidation is declared effective, in the month to 1 (one), to 3 (three), and to 4 (four), the Bank of the resulting merger or consolidation meets the criteria to account for the Market Risk.
As such, the Bank of the merger or consolidation is required to account for Market Risk since the month to 7 (seven).
Example 2:
Bank A does not meet the criteria to account for Market Risk.
Subsequently, Bank A acquired the financial company X so that Bank A was consolicoming against the company X.
For 6 (six) months after the acquisition of the company X was declared effective, in the second month (two), to 4 (four), and to 6 (six), the Bank was consolidated with the X company meeting the criteria for taking into account the Market Risk.
Thus, the Bank consolidated with the Child Company "X" that should account for Market Risk since the month to 7 (seven).

Article 29

.,, pretty clear.

Article 30

.,, pretty clear.

Article 31

.,, pretty clear.

Section 32

.,, Verse (1)

.,, the letter a

., referred to as "interest rate risk" is a risk of loss due to changes in the price of financial instruments from the Trading Book ' s position caused by the interest rate change.

Letter b

., referred to as the "risk of exchange rate" is the risk of losses due to changes in the value of the Trading Book and Banking Book caused by changes in the exchange rate of foreign exchange including a change in the price of gold.

Verse (2)

., referred to as "equity risk" is the risk of loss as a result of the financial instrument price change from the Trading Book position caused by the stock price change.
In question, "commodity risk" is a risk of loss due to changes in the price of financial instruments from the position of Trading Book and Banking Book caused by a change in commodity prices.

Section 33

.,, Verse (1)

.,, pretty clear
Verse (2)

.,, the new Bank meets the criteria for taking into account the Market Risk, hence the mandatory Market Risk calculation begins using the Standard Method.
Verse (3)

., clear enough.
Verse (4)

.,, pretty clear

Article 34

.,, Verse (1)

.,, the KPMM calculation report by taking into account the Market Risk among others includes position reports calculated in Market Risk, KPMM ratio report report, report count value at risk and capital burden, report back testing, as well as a stress testing report.
Verse (2)

., clear enough.
Verse (3)

.,, Example:
If the Bank A has obtained consent to use the Internal Model to account for the Market Risk in February 2009, then the report associated with the Internal Model was drafted for the first time in late March 2009.

Section 35

.,, pretty clear.

Section 36

.,, pretty clear.

Section 37

.,, pretty clear.

Article 38

.,, pretty clear.

Article 39

., referred to a "significant amount" is significant to the total financial assets in the group available for sale.

Section 40

.,, pretty clear.

Section 41

.,, pretty clear.

Article 42

.,, pretty clear.

Article 43

.,, pretty clear.

Section 44

.,, pretty clear.

Section 45

.,, pretty clear.

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