Business and Institutional Licensing The granting of a business license and institutional management of a finance company is one of the important factors in realizing a financing industry that is resilient, contributory, inclusive, and can also contribute to maintaining a stable and sustainable financial system to help reduce the vulnerability of Indonesia's financial system stability to financial shocks that may occur in the future. Organizational structure Financing companies must also have an organizational structure that clearly illustrates the least functions: 1. Administration and bookkeeping; 2. Marketing, financing feasibility analysis and billing; 3. Risk management, including internal control; and 4. The application of the principle of getting to know customers, Human Resources The Financing Company can use foreign workers who are employed as experts with a level of position one level below the Directors, Advisers, or Consultants, who are required to meet the following requirements: 1. Having expertise in accordance with the area of the task that will be his responsibility; and 2. Meet the provisions of the legislation in the field of employment. Reporting Finance companies must submit reports on changes to the articles of association, Members of the Board of Directors / Commissioners / composition of the Sharia Supervisory Board (DPS), and changes in office addresses. The reporting requirements are as follows: 1. Financing companies in the form of limited liability companies that make changes to certain articles of association must report to OJK no later than 15 calendar days after the changes have been approved or recorded by the authorized agency. 2. Financing companies in the form of cooperative legal entities that make changes to certain articles of association must report to OJK no later than 15 calendar days after the amendment is authorized by an authorized agency or approved by a member meeting. 3. Finance companies that make changes to members of the Board of Directors, members of the board of commissioners, and / or shareholders must report to the FSA no later than 15 calendar days after the changes are approved or recorded by the authorized agency. 4. Sharia Financing Companies and Sharia Business Units (UUS) are required to report changes in the composition and position of SSBs to OJK no later than 10 calendar days from the appointment. 5. The Financing Company must report written changes to the address of the head office, branch office or non-branch office to OJK no later than 10 calendar days from the date of the change. Merger, Consolidation, Acquisition, and Separation Finance companies that will conduct a merger, merger or takeover must submit an implementation plan to OJK for approval. Financing companies that merge or merge can only be done by companies with the same form of legal entity. Financing companies that take over are required to comply with provisions regarding share ownership, a maximum limit on total foreign ownership, and a maximum limit on the number of direct investments. The finance company that receives the merger must report the merger or the consolidated company must report the merger in writing to OJK no later than 10 calendar days from the date of approval or notification of amendments to the articles of association from the competent authority. Expropriated finance companies must report the takeover in writing to the OJK no later than 10 calendar days from the date of the takeover deed made before a notary public. Finance companies can do the separation by way of pure separation or impure separation. A pure separation must result in all assets, liabilities, and equity of the company being transferred due to the law to 2 or more companies that received the transfer, and the company that carried out the separation ended due to the law. Whereas impure separation must cause a portion of the assets, liabilities, and equity of the company to be transferred because the law is for 1 or more other companies that accept the transfer, and the company that makes the separation remains. Companies can do a pure separation by establishing a new company. A company can carry out impure separation by establishing a new company or transferring part of the company's assets, liabilities and equity to another company that has obtained a business license. Revocation of Business License Revocation of business license is done in the case of a finance company: 1. Disband; 2. Sanctions as referred to in OJK Regulation Number 28 / POJK.05 / 2015 concerning Business Licenses and Institutional Financing Companies; 3. Changing business activities; or 4. Merging or merging. Before the revocation of the business license is determined by the FSA, the finance company is required to settle its obligations to the debtor. In the case of a finance company disbanding because of the decision of the general meeting of shareholders or meeting of members or because of other reasons in accordance with the provisions of the legislation, the liquidator or settlement must report the liquidation to the OJK no later than 20 calendar days from the date of the decision or stipulation of dissolution. Finance companies are required to report changes in business activities no later than 15 calendar days since the amendment to the articles of association was authorized by the competent authority. Financing companies whose business licenses have been revoked are prohibited from using the word finance, financing, a word that characterizes Islamic financing or financing activities, in the name of the company. VENTURA CAPITAL COMPANY The OJK regulation package regarding Venture Capital Companies (PMV) consists of 4 POJK, namely: 1. POJK Number 34 / POJK.05 / 2015 concerning Business Licensing and Institutional Venture Capital Companies. 2. POJK Number 35 / POJK.05 / 2015 concerning Conducting Venture Capital Company Businesses. 3. POJK Number 36 / POJK.05 / 2015 concerning Good Corporate Governance for Venture Capital Companies. 4. POJK Number 37 / POJK.05 / 2015 concerning Direct Investments in Venture Capital Companies. The POJK package regarding Venture Capital Companies was determined by the Chairman of the OJK Board of Commissioners on December 21, 2015 and promulgated on December 28, 2015. The PMV can be established in the form of a Limited Liability Company (PT), Cooperative, or Limited Partnership Company. Based on Article 1 POJK Number 34 / POJK.05 / 2015 concerning Business Licensing and Institutional Venture Capital Companies, some definitions related to PMV are as follows: • PMV is a business entity that carries out Venture Capital Business activities, Venture Fund management, fee-based service activities, and other activities with the approval of the Financial Services Authority. • Venture Capital Business is a financing business through capital participation and / or financing for a certain period in the context of developing a business partner / debtor business. • Business partners are individuals or companies including micro, small, medium businesses and cooperatives that receive capital and / or investment participation based on profit sharing principles from PMV, PMVS, or UUS. • Debtors are individuals or companies including micro, small, medium businesses, and cooperatives that receive productive business financing from PMV. PMV Business Activities PMV can conduct 4 business activities, namely: a) Investment in shares b) Participation through the purchase of convertible bonds c) Financing through the purchase of debt securities issued by the Business Partner at the stage start-up and / or business development. d) Productive business financing INFRASTRUCTURE COST COMPANY In the Regulation of the Minister of Finance Number 100 / PMK.010 / 2009 concerning Infrastructure Financing Companies, all matters regarding Infrastructure Financing Companies are regulated, starting from establishment, business licenses, activities carried out and reporting. Infrastructure Financing Company (PPI) is a business entity specifically established to conduct funding in the form of providing funds for infrastructure projects. While according to Infrastructure itself is the Regulation of the Minister of Finance Number 100 / PMK.010 / 2009 concerning Infrastructure Financing Companies is infrastructure that can facilitate the mobility of goods and services flow. Infrastructure Financing Company Business Activities PPI business activities are: 1. Direct lending for Infrastructure Financing; 2. Refinancing of infrastructure that has been financed by other parties; and / or 3. Provision of subordinated loans (subordinated loans) related to Infrastructure Financing. To support these business activities, PPI can also do: 1. Providing credit enhancements, including guarantees for Infrastructure Financing; 2. Providing advisory services; 3. Equity investment (equity investment); 4. Efforts to find a swap market related to Infrastructure Financing; and / or 5. Activities or provision of other facilities related to Infrastructure Financing after obtaining Minister's approval. But in accordance with the provisions of article 55 of Law No. 21 of 2011 concerning the Financial Services Authority, as of December 31, 2012, the functions, duties and authority of the regulation and supervision of financial service activities in the Capital Market Sector, Insurance, Pension Funds, Financing Institutions, and other financial services institutions have been transferred from the Minister of Finance and Agency Capital Market and Financial Institution Supervisors to the FSA, then the activities or the provision of other facilities related to Infrastructure Financing must also obtain OJK approval. Infrastructure that can be the object of Infrastructure Financing includes: 1. transportation infrastructure, including sea ports, rivers or lakes, airports, networks rail, and train station; 2. road infrastructure, including toll roads and toll bridges; 3. irrigation infrastructure, including raw water carriers; 4. drinking water infrastructure, including raw water uptake buildings, transmission networks, networks distribution, drinking water treatment plants; 5. wastewater infrastructure, including waste water treatment installations, collection networks and main networks, and waste facilities including transport and disposal sites; 6. telecommunications infrastructure, including telecommunications networks; 7. electricity infrastructure, including electricity generation, transmission or distribution; 8. oil and gas infrastructure, including processing, storage, transportation, transmission or distribution of oil and gas; and / or 9. other infrastructure not included in the above infrastructure approved by the FSA.
