The rapid and significant fluctuations in the Net Asset Value (NAV) over the last two years between IDR 114 trillion and IDR 29.35 trillion. This has been a cause for concern for the Capital Market Supervisory Agency - Financial Institutions (Bapepam-LK). In an effort to take the necessary time to evaluate the reasons for these fluctuations and to assess the performance of the sector Bapepam-LK has issued Head of Bapepam-LK Decision No. KEP-69/BL/2007.

The Head of the Capital Market Supervisory Agency ? Financial Institutions (Bapepam-LK) has issued a Decision which stipulates that issuers or public companies that are dual listed, on an Indonesian Exchange and on a Foreign Exchange, are not subject to the provisions of Bapepam Rule X.K.2 and X.K.6. This in effect changes the financial reporting requirements for dual listed issuers and public companies.

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The Capital Market Supervisory Agency and Financial Institutions (Bapepam-LK) is continuing to undertake all the necessary regulatory framework requirements demanded of it under the July 2006 Financial Sector Policy Package. The overall objective of the guidelines is to improve good corporate governance of pension fund activities focusing on 5 main principles; transparency, accountability, responsibility, independence, and fairness.

The Head of the Capital Market Supervisory Agency and Financial Institutions (Bapepam-LK) issued Decision No. Kep-134/BL/2006 on 7 December 2006 and this Decision came into immediate force. The Decision includes Rule No. X.K.6, which is essentially the perfection and replacement of the earlier Rule No. VIII.G.2 on Annual Reports. The new Rule will facilitate compliance with the provisions provided for in the Financial Sector Policy Package issued in July 2006.

The Head of the Capital Market Supervisory Agency and Financial Institutions (Bapepam-LK) has issued 2 new rules, No. IX.A.13 (Rule IX.A.13) and IX.A.14 (Rule IX.A.14), covering matters relating to Syariah Principles in the Capital Market, the Issuing of Syariah Securities, and the Contracts used in the Issuing of Syariah Securities, respectively.

The Financial Sector Policy Package that was released in June 2006 provides for comprehensive renewal and reform of the financial sector regulatory framework. The Capital Market Supervisory Agency has been particularly active in issuing new or revised regulations for activities in the Capital Market (see ILB 1/9/2006).

The Minister of Finance is confident that with the right regulatory framework in place Multi-finance companies can make a significant contribution to national development. Therefore, the current regulatory framework needs perfecting to facilitate this and Regulation No. 84/PMK.012/2006 has been confirmed to fulfill this need.

The Head of the Capital Market Supervisory Agency and Financial Institutions (Bapepam - LK) has issued Regulation No. Kep- 84/BL/2006 on the Policy and Strategy to Develop the Pension Funds Industry. This is in effect a 5-year road map for the period 2007 - 2011 and is mandated in the Financial Sector Policy Package that was issued in July 2006.