OJK Levies on Financial Institutions to Commence 1 March

Fathan Qorib, Andin Aditya Rahman
 
Levies to be collected by the Financial Services Authority (OJK) from every financial service institutions will apply as of 1 March 2014 in accordance with a recently signed Government Regulation.
 
“The Government Regulation was signed by the President last Thursday or Friday. Starting 1 March 2014, the levies will apply,” stated Nelson Tampubolon, Executive Chairman of Banking Supervision at the OJK on Monday.
 
At the same event, Nurhaida, Executive Chairman of Capital Market Supervision at the OJK, added that the levies will be collected every 3 months, and that the amount will be differ for each financial service industry.
 
“The Government Regulation has been signed. Payments are every quarter, which will be collected in the first quarter,” explained Nurhaida.
 
One of the levies to be collected will be calculated as 0.03 percent to 0.06 percent of the assets owned by the respective financial service institution. This will apply to commercial banks, rural banks, Sharia rural banks, life insurance companies, general insurance companies, reinsurance companies, pension funds, financing companies, and venture capital companies.
 
This levy will also apply to infrastructure financing companies, along with other financial service institutions, such as pawnshops (pegadaian), export financing agencies, and secondary housing financing companies.
 
Another type of levy that will be collected will be calculated as 7.5 percent to 15 percent of a financial service’s annual income. This levy will apply to stock exchanges, clearing and guarantee corporations, central security depositories, and government securities trade organizers in foreign exchanges.
 
Underwriters and stock brokers that administer customer accounts will be charged a fee of 0.015 percent to 0.03 percent of their total assets. The levy for custodian banks that manage investments is 0.5 percent of the fees they charge for custodian fees.
 
Issuers and publicly traded companies will be charged a fixed amount, which will be determined based on the total assets they own in 1 year. For companies with assets of more IDR 10 trillion the charges will be IDR 50 to 100 million, for those with assets between IDR 5 to 10 trillion, IDR 25 to 50 million), for those with assets between IDR 1 to 5 trillion, IDR 17.5 to 35 million, and for thosew with assets less than IDR 1 (charges IDR 7.5 to IDR 15 million.
 
There are also levies that will be applied to mutual fund securities sales agencies, and investment advisors. The levy for mutual fund securities sales agencies is IDR 50 to 100 million per company client, while investment advisors will be charged IDR 2.5 to 5 million per company client or IDR 250 to IDR 500 thousand per individual client.
 
Failure to make payments of the applicable levies may result in an administrative fine of 2 percent of payable levies per month of delay.
 
(hot/kc)
Fathan Qorib, Andin Aditya Rahman
 
Levies to be collected by the Financial Services Authority (OJK) from every financial service institutions will apply as of 1 March 2014 in accordance with a recently signed Government Regulation.
 
“The Government Regulation was signed by the President last Thursday or Friday. Starting 1 March 2014, the levies will apply,” stated Nelson Tampubolon, Executive Chairman of Banking Supervision at the OJK on Monday.
 
At the same event, Nurhaida, Executive Chairman of Capital Market Supervision at the OJK, added that the levies will be collected every 3 months, and that the amount will be differ for each financial service industry.
 
“The Government Regulation has been signed. Payments are every quarter, which will be collected in the first quarter,” explained Nurhaida.
 
One of the levies to be collected will be calculated as 0.03 percent to 0.06 percent of the assets owned by the respective financial service institution. This will apply to commercial banks, rural banks, Sharia rural banks, life insurance companies, general insurance companies, reinsurance companies, pension funds, financing companies, and venture capital companies.
 
This levy will also apply to infrastructure financing companies, along with other financial service institutions, such as pawnshops (pegadaian), export financing agencies, and secondary housing financing companies.
 
Another type of levy that will be collected will be calculated as 7.5 percent to 15 percent of a financial service’s annual income. This levy will apply to stock exchanges, clearing and guarantee corporations, central security depositories, and government securities trade organizers in foreign exchanges.
 
Underwriters and stock brokers that administer customer accounts will be charged a fee of 0.015 percent to 0.03 percent of their total assets. The levy for custodian banks that manage investments is 0.5 percent of the fees they charge for custodian fees.
 
Issuers and publicly traded companies will be charged a fixed amount, which will be determined based on the total assets they own in 1 year. For companies with assets of more IDR 10 trillion the charges will be IDR 50 to 100 million, for those with assets between IDR 5 to 10 trillion, IDR 25 to 50 million), for those with assets between IDR 1 to 5 trillion, IDR 17.5 to 35 million, and for thosew with assets less than IDR 1 (charges IDR 7.5 to IDR 15 million.
 
There are also levies that will be applied to mutual fund securities sales agencies, and investment advisors. The levy for mutual fund securities sales agencies is IDR 50 to 100 million per company client, while investment advisors will be charged IDR 2.5 to 5 million per company client or IDR 250 to IDR 500 thousand per individual client.
 
Failure to make payments of the applicable levies may result in an administrative fine of 2 percent of payable levies per month of delay.
 
(hot/kc)
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