ATTACHMENT TO IMPLEMENTATION OF THE CLEARING AND SETTLEMENT OF EQUITY. In this Rule, the following terms shall have the meanings as defined below:

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1 ATTACHMENT TO Decision of the Board of Directors of PT Kliring Penjaminan Efek Indonesia Number : KEP-008/DIR/KPEI/0612 Dated : RULE OF KPEI NUMBER: II-5 IMPLEMENTATION OF THE CLEARING AND SETTLEMENT OF EQUITY SECURITIES EXCHANGE TRANSACTIONS I. GENERAL PROVISIONS In this Rule, the following terms shall have the meanings as defined below: 1. Collateral means any assets offered as security by any Clearing Member to KPEI, which may be used for settlement of Exchange Transactions and or for settlement of the obligations of any Clearing Member to KPEI. 2. Clearing Member means a Stock Exchange member that meets the requirements established by KPEI to obtain Clearing and Guarantee services for the Settlement of Exchange Transactions. 1/8

2 3. Exchange means the Indonesia Stock Exchange or PT Bursa Efek Indonesia. 4. List of Exchange Transactions (Daftar Transaksi Bursa/DTB) means an electronic document that contains all Exchange Transactions conducted by any of the Exchange Members on any Exchange Day as provided by the Exchange for Exchange Members and KPEI at the end of each trading session. 5. List of Clearing Results (Daftar Hasil Kliring/DHK) means an electronic document that specifies the rights and obligations relating to the Securities and or money of each of the Clearing Members for the Settlement of Exchange Transactions inclusive of the their respective contribution amount in Guarantee Fund. 6. Equity Securities means any shares or Securities convertible into shares or Securities with the rights to obtain equity as specified in Rule of Bapepam Number IX.J.1 on the Basic Provisions for the Articles of Association of Companies Making A Public Offering of Equity Securities and Public Companies. 7. Payment Default means non-performance in part or in whole of the total obligations of a Clearing Member to pay an amount of money to KPEI to fulfill its obligations to settle the Exchange Transactions. 2/8

3 8. Clearing means a process of determining the rights and obligations arising from the Exchange Transactions as referred to in Rule of Bapepam and LK Number III.A.10 concerning Securities Transactions. 9. KPEI means PT Kliring Penjaminan Efek Indonesia. 10. KSEI means PT Kustodian Sentral Efek Indonesia. 11. Clearing Member Client means an individual or institution using the services provided by any Clearing Member. 12. Netting means a Clearing activity giving rise to rights and obligations of each Clearing Member to deliver and or receive a certain balance of Securities for any type of Securities through set-off and to receive or pay a certain amount of money for all Securities through set-off as referred to in Rule of Bapepam and LK Number III.A.10 on Securities Transaction. 13. Trade for trade means direct settlement of the rights and obligations of any transaction by the selling Exchange Member and the buying Exchange Member with respect to the Securities traded. 14. Negotiation Market means a market on which Equity Securities are traded on the Exchange is conduced through a direct and individual bid-offer and non-continuous auction and the settlement thereof shall 3/8

4 be made by mutual agreement of the Exchange Members. 15. Regular Market means a market on which Securities are traded on the Exchange by way of continuous auction by the Exchange Members and the settlement thereof shall be made on the 3 rd Exchange day after the Exchange Transaction (T+3). 16. Cash Market means a market on which Securities are traded on the Exchange by way of continuous auction by the Exchange Members and the settlement thereof shall be made on the same Exchange day as the occurrence of the Exchange Transaction (T+0). 17. Exchange Transaction Settlement means the fulfillment of the Clearing Members obligations to KPEI and the fulfillment of the rights of the Clearing Members by KPEI according to the Clearing Result List (DHK). 18. Collateral Account means a Clearing Member s Securities Account with KSEI that may be used by KPEI for settlement of the Clearing Member s Exchange Transactions and or obligations to KPEI. 19. Transfer Account means the Securities Account of a Clearing Member with KSEI that may be used by the relevant Clearing Member to fulfill its obligations to KPEI and obtain its rights from KPEI. 4/8

5 20. Guarantee Sub Securities Account (Sub Rekening Efek Jaminan) means a Securities account in the name of a Clearing Member Client with KSEI, to be used for settlement of the Clearing Member s Exchange Transactions and or obligations to KPEI. II. CLEARING OF EQUITY SECURITIES EXCHANGE TRANSACTIONS 1. Based on the List of Exchange Transactions, KPEI shall conduct the Clearing of Equity Securities Exchange Transactions of each Clearing Member. 2. KPEI shall conduct the Clearing activity subject to the following provisions: a. Any Equity Securities Exchange Transactions on the Regular Market and Cash Market shall be carried out by means of Netting; b. Any Equity Securities Exchange Transactions on the Negotiation market shall be carried out by means of Trade for Trade. 3. Based on the Clearing Result, KPEI shall provide each of the Clearing Members with the List of Clearing Results (DHK). 5/8

6 4. In addition to the DHK, KPEI shall also provide information on the position of the rights and obligations of each Clearing Member Client. 5. The DHK shall constitute an invoice from KPEI to a Clearing Member to fulfill the Member s obligations for the settlement of Equity Securities Exchange Transactions. 6. KPEI shall provide the DHK subject to the following provisions: a. For Equity Securities Exchange Transactions on the Regular Market and Negotiation Market, by WIB on the same Exchange Day as that of the relevant Equity Securities Transaction (T+0); b. For Equity Securities Exchange Transactions on the Cash market, to be issued by WIB on the same Exchange Day as that of the relevant Equity Securities Transaction (T+0); 7. KPEI shall recalculate the rights and obligations related to the Equity Securities Exchange Transactions on the Regular Market and those on the Cash Market whose settlement date falls on the same Exchange Day. III. SETTLEMENT OF EQUITY SECURITIES EXCHANGE TRANSACTIONS 6/8

7 1. To settle the Equity Securities Exchange Transactions, each Clearing Member shall open only 1 (one) Guarantee Sub Securities Account (sub account 004) for each Client of the Clearing member who already has a Depository Sub Securities Account (Sub Securities Account 001) at the Clearing Member, to deposit Securities and or fund the settlement of Exchange Transactions and or the settlement of Exchange Transactions in favor of the relevant client. 2. The obligations of a Clearing Member to KPEI may be carried out by transferring the Equity Securities and or cash to the Transfer Account of the Clearing Member by WIB on the settlement date as indicated in the DHK. 3. The obligations of a Clearing Member Client to KPEI may be carried out by transferring the Equity Securities and or cash from the Guarantee Sub Securities Account of the Clearing Member Client to the relevant Transfer Account of the Clearing Member by WIB on the settlement date as indicated in the DHK. 4. Each Clearing Member shall be responsible for the obligation to settle the Equity Securities Exchange Transaction both for its own benefit and or for the benefit of its Clients in compliance with the schedule and procedure as provided. 5. In the event of non-performance whether in part or in whole of the 7/8

8 obligations to transfer the Equity Securities with respect to the fulfillment of the obligation of a Clearing Member to KPEI, the Clearing Member must recompense it by paying an Alternate Cash Settlement to KPEI at a rate of 125% (one hundred and twenty five percent) of the highest price of the same Equity Securities taking place on: a. The Regular market and the Cash Market whose settlement is due on the same date; and b. The Regular Market, taking place on the first session of the relevant Transaction settlement date. 6 The rights of a Clearing Member may be fulfilled by KPEI by transferring Equity Securities and or cash to the Transfer Account of the Clearing Member by WIB on the settlement date as indicated in the DHK 7 The rights of a Clearing Member Client may be fulfilled by a Clearing Member by having KPEI transfer the Equity Securities and or cash from the Transfer Account of the Clearing Member to the Guarantee Sub Securities Account of the Clearing Member Client by WIB on the settlement date as indicated in the DHK. 8 In the event of failure by KPEI whether in part or in whole to transfer the Equity Securities in relation to the fulfillment of the right of a 8/8

9 Clearing member to receive, the following provisions shall apply: a. Based on the Equity Securities available, the priority of the fulfillment of the rights to receive Equity Securities shall be given to any preferred Clearing Member; b. In the event of insufficient Equity Securities available, KPEI shall replace the obligation with transfer the same by paying Alternate Cash Settlement at a rate of 125% (one hundred and twenty five percent) of the highest price of the same Equity Securities, taking place on: i. The Regular market and Cash Market whose settlement is due on the same date; and; ii. The Regular Market, occurring on the first session of the relevant Transaction settlement date. 9. The Alternate Cash Settlement as set forth in item 8 above shall be made by KPEI to the Transfer Account of the relevant Clearing Member. 10. In the event of a delay in the transfer of Equity Securities and or cash relating to the settlement of Exchange Transactions as referred to in items 2 and 7 above for the following reasons: a. Technical problems in e-clears due to: i) Data application or system error; ii) e-clears and c-best full capacity; 9/8

10 iii) damage to e-clears and c-best; iv) link disconnection between e-clears and c-best; v) technical problems in e-clears supporting infrastructure. b. The technical problems at KSEI s depository and settlement system resulting in the failure to carry out the guarantee and settlement process of the Exchange Transactions; c. Disasters, such as: earthquake, flood, fire; d. Security, social and political disturbances, including: insurrections, bomb explosions, riots, sabotages, strikes, and epidemics; e. Disruption of public utilities and infrastructure such as electricity, telecommunication and transportation network. such delay shall not be deemed as a failure to fulfill the rights and obligations of the Clearing Members or KPEI. 11. Based on the status of fulfillment of the obligations of the Clearing Members, KPEI shall provide a Report on the Settlement of Obligations, which takes the form of an electronic document detailing the status of fulfillment of the rights and obligations of each Clearing Member and Clearing Members Clients and such report shall be available to the Clearing Members on the Exchange Day of the 10/8

11 settlement of the obligations of the Exchange Transactions no later than WIB. 12. The Procedure for the Settlement of Equity Securities Exchange Transactions in the Negotiation Market shall be performed in compliance with the Exchange Rule No.II-A concerning Equity securities Trading. IV. NON-PERFORMANCE BY CLEARING MEMBERS AND ITS SOLUTIONS 1. In the event of non-performance by a Clearing Member of its obligations as specified in the DHK, the Clearing Member shall be declared to be in Payment Default. 2. In the event of Payment Default by a Clearing Member, KPEI shall impose the sanction as set out in Rule of KPEI number II-8 and report the same to the Exchange. 3. The failure by the Clearing Member to perform its obligation to settle an Exchange Transaction shall result in suspension of fulfilment of the relevant Clearing Member s rights. 11/8

12 4. As a consequence of the suspension of fulfilment of the rights of the Clearing Member, KPEI shall transfer the Securities and or fund that should have been received by the defaulting Clearing Member to the Collateral Account of the Clearing Member. 5. In the event of payment default by a Clearing Member, KPEI may take the following measures: a. Sell the Securities in the Collateral Account of the Clearing Member and give confirmation to the Clearing Member regarding the proceeds of the sale; b. levy execution on and or sell the Collateral provided by the Clearing Member to KPEI as security; c. request the Exchange to sell the Exchange shares of the Clearing Member within a period of 60 (sixty) days after the time at which the Clearing Member defaults on the payment if the proceeds from the sale and the application or execution of the Collateral as stated in item 5 letters a and b above are insufficient to fully discharge the obligation of the Clearing Member to KPEI. 6. All expenses and fees incurred in handling such default shall be for the account of and borne by the relevant Clearing Member. 12/8

13 7. The handling of the non-performance of any obligations arising from the transactions on the Negotiation Market shall be done by the Clearing Member. 8. Specific Handling of non-performance of Obligations a. In the event of default by a Clearing Member that cannot be resolved by the procedure as set out in item 5 for any reasons shall be resolved based on the suggestions and opinions from the Credit Policy and Risk Control Committee. b. Under certain circumstances KPEI may settle such specific problem without the need of any consideration, suggestion and opinion from the Credit Policy and Risk Control Committee. c. If KPEI takes the measures as described in item 8 letters a and b, KPEI shall report it immediately to Bapepam-LK and the Exchange. d. Any and all expenses and fees incurred in taking the measures as stated in item 8 a and b shall be paid by the Clearing Member. V. THE FEES FOR CLEARING AND GUARANTEE OF THE SETTLEMENT OF EQUITY SECURITIES EXCHANGE TRANSACTIONS 13/8

14 1. Each Clearing Member shall pay a fee to KPEI, to be calculated on the value of each transaction by the Clearing Member, as described below: a. The Clearing and Guarantee fee for the Settlement of Exchange Transactions on the Regular Market and Cash Market shall be 0.009% (zero point zero zero nine percent); b. The fee for Clearing for the Settlement of Exchange Transactions on the Negotiation Market shall be 0.009% (zero point zero zero nine percent) or otherwise as stipulated by KPEI policy. c. The fee for Clearing and Guarantee for the Settlement of Equity Securities Exchange Transactions as set out in item 1 letter a above shall be a minimum of Rp (ten million Rupiah) per month in consideration of the facilities provided by KPEI to the Clearing Members and shall remain applicable to any Clearing Member under suspension. 2. Any Clearing Member shall pay to KPEI the fee for Clearing and Guarantee services for Settlement of Equity Securities Exchange Transactions whwther for its own benefit or for the benefit of the Clearing Member s Client. 3. The obligations as stated in item 1 above shall be exclusive of any 14/8

15 Value Added Tax (VAT) and Income Tax (PPh) and other tax obligations, if any, and shall be paid through KPEI as a withholder. 4. The service fee as set out in item 1 above must be paid by any Clearing Member to KPEI every month on the 12 th calendar day of the following month at the latest. 5. If the 12 th calendar day as referred to in item 4 above falls on Saturday or Sunday or a holiday, such payment obligation shall be effective on the next business day. 6. Any delay in the payment of the Clearing and Guarantee service fee to KPEI for the Settlement of Equity Securities Exchange Transactions shall be subject to a penalty of 1% (one percent) of the total fee payable for each calendar day of the relevant late payment. 7. In the event of any delay in the payment of VAT and other tax obligations, the Clearing Member shall pay to KPEI a reimbursement therefor in an amount equal to the amount paid by KPEI plus default interest of 1% (one percent) of the amount of tax payable for each calendar day of such late payment. 8. In the event of failure by a Clearing Member to pay to KPEI the Clearing and Guarantee fee for the Settlement of Equity Securities Exchange Transactions within 5 (five) Exchange Days after the lapse 15/8

16 of the period specified in item 4 above, KPEI shall be entitled to enforce the Collateral of the Clearing Member available to KPEI to pay off the Clearing and Guarantee fee required for the Settlement of Equity Securities Exchange Transactions including the penalty as referred to in items 6 and 7 above. Issued in Jakarta, on Hoesen President Director Bambang Widodo Director 16/8