3A NON-BANK COMPANY OFFSHORE LOAN (Regulation of Bank Indonesia No, 10/7/PBI/2008, dated February 19, 2008) WITH THE BLESSING OF THE ONE AND ONLY GOD ‘THE GOVERNOR OF BANK INDONESIA, Considering: ‘a. that offshore loan is one of the important factors that may have positive or negative effect on the payment balance sheet, monetary stability and continuous de- velopment; that to reduce the negative effect in letter a above, offshore loan needs to be managed with due obser- ‘vance of prudential principles and interest ofthe nation's economy and to preserve the trust of international fi- nancial market; that based on consideration referred to in letters a and b, Its deemed necessary to govern provision on off- shore loan by non-bank company in Regulation of Bank Indonesia; Inview of: 1. Law No,23 Year 1999 (BI No, 6325 pages 1A-7A and so forth) concerning Bank Indonesia (Statue Book ‘of Republic of IndonesiaYear 1999 No.66; Suplement to Statue Book of Republic of Indonesia No. 3843); Law No.24 Year 1999 (BN No. 6325 pages 9A-12A ‘and so forth) concerning foreign exchange Transac- tions and Exchange Rate system (Statue Book of Re~ public of IndonesiaYear 1999 No.67, Suplement to Statue Book of Republic of Indonesia No. 3844); DECIDES: To stipulate: REGULATION OF BANK INDONESIA ON NON-BANK COM- PANY OFFSHORE LOAN Business News 7666/5-23-2008 CHAPTER GENERAL PROVISION Article 1 What is meant in this Regulation of Bank Indone sia by: 11. Non-Bank Company Offshore Loan hereinafter referred to.as PLN Company is all types of company loan from ‘non-citizen in foreign currency or in rupiah, commer- cial paper in foreign currency issued by the company, and other obligations to non-citizen in foreign currency orn rupah, also including conducted based on syariah principle, 2. Syariah principle is principles based on Isiamic teach- ing which is stipulated by the Board of Panel of Islamic Scholars of Indonesian National Syariah, Non-Bank company hereinafter referred to as com- pany is 2. State-owned business entity (BUMN); b, Regional-owned business entity (BUMD); c. Private-owned business entity (BUMNS) that cov- ers: 1) public company; 2) issuer; 3) foreign capital investment company; 4) other BUMS with asset or gross sale for one (1) year Is at least Rp.100.000.000.000,00 (one hundred bition Rupiahs).. State-owned business entity hereinafter referred to as BUMN, is business entity as governed in the prevalling 4 statutory regulation on State-owned business entity. Regional-owned business entity hereinafter referred to as BUMD is business entity as governed in the pre~ vailing statutory regulation on Regional-owned busi- ness entity.6. Public company is company with a number of share- holders and paid up capital as governed in the prevall- Ing statutory regulation on capital market. Issuer is party exercising public offer as governed in the prevailing statutory regulation. Foreign capital investment company is company which shares are at least 10% (ten percent) owned by non- citizen, ._ Non citizen is person, legal entity or other legal entity domiciled in Indonesia or has no plan to domicile in Indonesia. 10. Creditor or fund provider is person, legal entity or other entity that provide loan or provide fund or equivalent thereto, to any company for a certain period with terms ‘and conditions agreed upon. 11. Short-term PLN company fs PLN company with a term Of up to one (1) year period, either directly from the Creditor or finance market or indirectly through other party constituting affiliate or non-afiliate. 12, Long-term PLN company with a term of more than one (1) year, either directly from the creditor or the fi- ‘nance market or indirectly through other party consti- tuting affiliate or non-affiliate. . 413, Other affilated party is other party having capital or shares ownership n the company of at least 10% (ten percent) or is included in one group. 14, Other non-affilate party is other party not having capl- tal or share ownership or having capital or shares ownership lower than 10% (ten percent) in the com- any or is included in one group. 15. Year is calendar year starting from January through December. Business News 7666/5-23-2008 4A 16. Issue of Debenture through public offer I Issue of de- benture either registered or not registered atthe bourse as governed in the prevailing statutory regulation on Capital Market. 17. Issue of Debenture through Private Placement is issue of debenture exercised other than by public offer as governed in the prevailing statutory regulation on Cap tal Market, CHAPTER IL SCOPE Article 2 Types of PLN companies shall cover: 1. Loam in Rupiah or foreign exchange conducted based on loan agreement with non-citizen, 2. Debenture in foreign exchange issued in international finance market through public offer. 3. Debenture in Rupiah or foreign exchange issued through private placement to non-citizen 4 Debentue in foreign exchange issued in domestic nance market through public offer. Debenture in foreign exchange issued through private placementtto the citizen, | Other obligations to non-citizen elther in foreign ex- change of in Rupiah other than PLN company as re- ferred to in point 1 through point 5, CHAPTER IIL PLN COMPANY'S PRINCIPLES OF PRUDENTIAL Article 4 The company that desires to implement either short-term or long-term PLN company shall be obliged to ‘apply the function of risk management covering: a_market2. market risk; b. credit risk; liquidity risk. Article 5 (2) The company planning to obtain long-term PLN com- pany shall be obliged to have rating assessment from the national or international rating institution (2) The provision governed in paragraph (1) shall not ap ply to PLN to be obtained: a. BUMS directly from the holding company (share- holder); BUMN and BUMD with asset or gross sale for one (1) year is less than Rp.100,000,000,000,00 (one billion Rupiahs). CHAPTER IV ‘OBLIGATORY REPORTING Article 6 (1) The company planning to obtain PLN long-term com- pany shall be obliged to submit report to Bank Indone- sia correctly and comprehensively covering: a. financial risk; b. financial report; . rating assessment; d. report on PLN company's one (1) year plan; €. result of analysis on company risk management. (2) The company owning PLN company with short-term ‘and/or long-term position shall be obliged to submit report correctly and comprehensively to Bank Indone- sia on: a. finance ratio; and b. financial report. Business News 7666/5-23-2008 Atticle 7 (2) The report referred to in Article 6 paragraph (1) letters a and b and paragraph (2) letters a and b shall be submitted once every six (6) months (semester), at the latest by 10 April and by 10 September or the fol- lowing working day ifthe date falls on holiday. (2) The report referred to in Article 6, paragraph (1) let- ters ¢, d, and e stall be submitted by 10 March in the ‘current year or cn the following working day if the date falls on holiday. Article 8 (1) In the occurrence of amendment to PLN company long- term plan and/or amendment to the analysis result on company risk management as referred to in Article 6, paragraph (1) lets d and e, the Company shall be obliged to report the amendment to Bank Indonesia. (2) The report on amendment to PLN company's long-term plan and/or amendment to the analysis result on com pany risk management as referred to in paragraph (1) shall be submitted by 1 July atthe latest of the current ‘year or the following working day if the date falls on holiday with the grounds for amendment. Article 9 ‘The company shall be deemed to have falled in submit ing the report referred to in Article 6, paragraph (1), ifBank Indonesia receives the report 30 (thirty) days after the stipulated time limit as governed in Article 7 and Article 8 paragraph (2) and/or Bank Indonesia receives the report accordance with the stipulated time limit but is incomplete as governed in Article 6. Article 1