Sukuk and Indonesia I

The government has issued Government Regulation No. 67 of 2008 to establish Syariah National Commercial Paper Issuer Indonesia I (Surat Berharga Syariah Negara Indonesia I / SBSN Indonesia I). The Regulation is mandated in Article 6 of Law No. 19 of 2008 and the commercial paper referred to is Sukuk (Syariah Bonds).

The Head Office of the Indonesia I is to be in Jakarta. The Board of Directors comprises of three individuals (One President Director and two members). Indonesia I will be established for the length of the Sukuk. Indonesia I is to be established with paid up capital of IDR 10 million.

The primary activities of Indonesia I will be:

-                 To issue Sukuk in foreign currencies;

-                 Manage the Sukuk in the interest of holders; and

-                 Any other activities as required.

The duties and authorities of the Board of Directors include:

-                 Sign documents;

-                 Represent the business; and

-                 Appoint parties to assist the trustee.

The responsibilities include:

-                 To report on the implementation, and

-                 To produce an annual report.

The Regulation has been in force since 21 October 2008.