A DECREE OF THE MINISTER OF FINANCE NUMBER 512/KMK.06/2002 CONCERNING DIRECT INSPECTION OF PENSION FUNDS

Transcription

1 ANNEX IV.14 A DECREE OF THE MINISTER OF FINANCE NUMBER 512/KMK.06/2002 CONCERNING DIRECT INSPECTION OF PENSION FUNDS

2 A DECREE OF THE MINISTER OF FINANCE NUMBER 512/KMK.06/2002 CONCERNING DIRECT INSPECTION OF PENSION FUNDS MINISTER OF FINANCE OF, Considering: a. that in order to establish Pension Fund management that is efficient and useful, it is necessary to conduct monitoring and supervision by the Minister of Finance; b. that direct inspection against pension funds shall be one of mentoring and supervisions of pension funds; c. that in order to improve quality of inspection against Pension Fund, the provisions on inspection against pension funds as referred to in a Decree of the Minister of Finance Number 10/KMK.017/1997 needs to be improved. d. that based considerations of letters a, b and c, it is necessary to enact a Decree of the Minister of Finance concerning Direct Inspection of Pension Funds. In view of: 1. Law Number 11 Year 1992 concerning Pension Fund (State Gazette of the Republic of Indonesia Year 1992 Number 37); (Supplement to State Gazette of the Republic of Indonesia Number 3477); 2. Government Regulation Number 76 Year 1992 concerning Pension Fund as Job Providers (State Gazette of the Republic of Indonesia Year 1992 Number 126); (Supplement to State Gazette of the Republic of Indonesia Number 3507); 3. Government Regulation Number 77 Year 1992 concerning Financial Institution Pension Funds (State Gazette of the Republic of Indonesia Year 1992 Number 127); (Supplement to State Gazette of the Republic of Indonesia Number 3508); 4. The Presidential Decree Number 998/M Year To enact: HAS DECIDED, A DECREE OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA CONCERNING DIRECT INSPECTION OF PENSION FUNDS. CHAPTER I GENERAL PROVISIONS Article 1 In this Decree of the Minister of Finance the following definitions apply:

3 1. Direct inspection shall be a series of activities to seek, collect, manage and evaluate data and or information regarding Pension Fund performed in the office of Pension Fund and in other places related directly or indirectly with pension fund activity. 2. Examiner shall be employee of the Directorate General of Pension Fund who meets qualifications to perform direct inspection. CHAPTER II BASIS OF DIRECT INSPECTION Article 2 (1) Direct Inspection shall be performed based on risk consideration against Pension Fund determined on the basis of: a. Periodical report analysis of Pension Fund that indicates deviations of pension programs from the provisions of law regarding pension fund or Pension Fund managed inefficiently; b. Research on complaint or information obtained from sources that are reliable creating suspicion that pension fund management is deviating from the provisions of law on Pension Fund or Pension Fund is managed inefficiently; and or c. Particular reasons, including if there is liquidation, merger or separation of Pension Fund. (2) Direct inspection as referred to in paragraph (1) shall be determined in the plan of Direct Inspection by the Director of Pension Fund. (3) If there is Pension Fund that must be prioritized to be inspected, the Director of Pension Fund may order a direct inspection beside inspection as referred to in paragraph (2). CHAPTER III OBJECTIVES OF DIRECT INSPECTION Article 3 Direct Inspection as referred to in Article 2 shall have objectives to, but no limited: a. obtain sufficient belief on suitability risk level of Pension Fund management to Pension Fund Law and its implementing regulations; b. obtain sufficient belief on operational risk level of Pension Fund besides risk as referred to in letter a; and or c. obtain sufficient belief on performances of Pension Fund. CHAPTER IV DIRECT INSPECTION PROCEDURES Article 4 (1) Direct Inspection as referred to in Article (2) paragraph (1) shall be conducted by Examiner. (2) Examiner as referred to in paragraph (1) shall conduct Direct Inspection based on an Order of Direct Inspection from the Director of Pension Fund.

4 Article 5 (1) Prior Direct Inspection as referred to in Article 2 is conducted the Director of Pension Fund shall first send a written announcement to the Pension Fund that will be examined thru Direct Inspection. (2) Direct Inspection may be conducted without a written announcement as referred to in paragraph (1) if there is a suspicion that said announcement will make possibility that there is an action to conceal real condition so that direct inspection conducted shall not reach objectives as referred to in Article 3. (3) Announcement as referred to in paragraph (1) at least shall include: a. Number and date of an Order of Direct Inspection; b. Name of examiner; c. Purposes of Direct Inspection; d. Duration of Direct Inspection; and e. Documents required for direct inspection. Article 6 (1) Direct inspection as referred to in Article 2 shall be conducted based on direct inspection standards. (2) Direct inspection standards as referred to in paragraph (2) shall include: a. Direct Inspection Management Manual of Pension Fund determined by the Director General of Financial Institutions; and b. Direct Inspection Operational Manual of Pension Fund determined by the Director of Pension Fund. Article 7 (1) Pension Fund being inspected shall be entitled to request an Examiner to show his/her identity as examiner and an Order to perform Direct Inspection. (2) If an Examiner may not demonstrate the Identity or an Order of Direct Inspection, Pension Fund shall be entitled to refuse Direct Inspection. Article 8 (1) Any party shall be prohibited to make Direct Inspection slow. (2) In respect with checking, classification or confirmation of data and or information during Direct Inspection, the management must assist the Examiner in obtaining data or information from public accountant, trustee, actuary, or other party related with Pension Fund activity. (3) In order to obtain confidence on checking, classification or confirmation of data, and or information as referred to in Paragraph (2), the management must permit the Examiner to obtain data and or information directly from public accountant, trustee, actuary or other party related with Pension Fund activity. (4) Any party shall be considered making Direct Inspection slow if at least conducting one of the following activities:

5 a. Does not demonstrate and or lend books, records, reports and documents required immediately within reasonable period of time; b. Is not willing to provide information or clarification within period of time determined by the Examiner; c. Does not provide information required; d. Demonstrates, lends or provides false data or information or being falsified; and or e. Does not comply with obligations as referred to in paragraph (2) and paragraph (3). Article 9 (1) As from Direct Inspection is conducted, the Examiner and management must sign a memorandum of Direct Inspection. (2) If the management refuses to sign Memorandum of Direct Inspection as referred to in paragraph (1), the Examiner and management must sign a memorandum on Rejection for Signing Memorandum of Direct Inspection. (3) If the management refuses to sign memorandum on Rejection for Signing Memorandum of Direct Inspection as referred to in paragraph (2), the Examiner must prepare a Statement Letter on such rejection by the management. CHAPTER V REPORTING Article 10 (1) As from termination of Direct Inspection, the Examiner must prepare Temporary Result of Direct Inspection. (2) Director of Pension Fund shall submit Result of Direct Inspection to the Founder and Management within no later than 20 (twenty) business days as from termination of Direct Inspection. Article 11 (1) The Founder and Management may send a request discussing Temporary Result of Direct Inspection to the Director of Pension Fund. (2) Discussion on Temporary Result of Direct Inspection may only be conducted if a request on discussion as referred to in paragraph (1) has been obtained by the Director of Pension Fund within no later than 10 (ten) business days as from the date of submission of introduction letter on Temporary Result of Direct Inspection. (3) Discussion as referred to in paragraph (2) shall be conducted at the Office of Director of Pension Fund and lead by the Director of Pension Fund, and its result shall be determined in a Memorandum of Discussion against Temporary Result of Direct Inspection. (4) Temporary Results of Direct Inspection and Memorandum of Discussion on Temporary Result of Direct Inspection shall be used as basis for preparing Result of Direct Inspection. Article 12 The Director of Pension Fund shall submit Result of Direct Inspection as referred to in Article 11 paragraph (4) to the Directorate General of Financial Institutions, the Founder and management within no later than 7 (seven) business days as from the date of discussion on

6 Temporary Result of Direct Inspection, of as from time period for sending a request for discussing as referred to in Article 11 paragraph (2) is over. CHAPTER VI FILING A COMPLAINT ON RESULTS OF DIRECT INSPECTION Article 13 (1) The founder and management may file a complaint on results of direct inspection as referred to in Article 12 to the Director General of Financial Services. (2) A complaint as referred to in paragraph (1) must have been obtained within no later than 3 (three) months as from the date of introduction letter was sent on results of direct inspection. (3) A complaint as referred to in paragraph (1) submitted within period as referred to in paragraph (2) may be considerations by the Director General of Financial Institutions in making policies regarding Pension Fund concerned. (1) If the management: CHAPTER VII SANCTIONS Article 14 a. Refuses that Inspection is conducted, unless rejection as referred to in Article 7 paragraph (2); and or b. Makes direct inspection as referred to in Article 8 paragraph (4) slow; the Founder must replace the management. (2) Imposition of sanctions to the founder in replacing the management as referred to in paragraph (1) shall be determined with a Decision of the Director General of Financial Institutions. CHAPTER III CLOSING PROVISION Article 15 As from the enactment of this Decree of the Minister of Finance, a Decree of the Minister of Finance Number 40/KMK.017/1997 concerning Pension Fund Inspection shall be inapplicable. Article 16 This Decree of the Minister of Finance shall come into force as of the date of promulgation. For public cognizance, this Law shall be announced by placing it in the Statute Book of the Republic of Indonesia. Enacted in Jakarta On December 4, 2002 MINISTER OF FINANCE SIGN

7 BOEDIONO