Minister of Finance of the Republic of Indonesia

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

COPY

REGULATION OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

NUMBER 75/PMK.08/2013

CONCERNING

THE BUYBACK OF SHARIA SECURITIES

BY THE GRACE OF GOD ALMIGHTY

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

Considering : a. that based on the provisions of Article 18 and Article 24 of Law Number 19 Year 2008 concerning Islamic Based Government Securities, the Minister shall manage the Sharia Securities either it issued directly by the Government nor through the Sharia Securities Issuer Company, and stipulate the provisions regarding the issuance and the Sharia Securities; b. that in order to perform the portfolio management and market infrastructure development of the Sharia Securities can be conducted the Buyback of Sharia Securities; c. that based on the considerations as set forth in letter a and b, it is necessary to stipulate the Regulation of the Minister of Finance concerning The Buyback of Sharia Securities;

In view of : 1. Law Number 19 Year 2008 concerning Sharia Securities (State Gazette of the Republic of Indonesia Year 2008 Number 70, Supplement to the State Gazette of the Republic of Indonesia Number 4852); 2. Regulation of the Minister of Finance Number 05/PMK.08/2012 concerning the Issuance and the Selling of Sharia Securities in the Domestic Primary Market by Auction Way (Official Gazette of the Republic of Indonesia Year 2012 Number 36);

BE IT HEREBY RESOLVED:

To enact : THE REGULATION OF THE MINISTER OF FINANCE CONCERNING THE BUYBACK OF SHARIA SECURITIES.

CHAPTER I GENERAL PROVISIONS

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA - 2 -

Article 1 In this Ministerial Regulation, some terms herein shall be defined as follow: 1. Sharia Securities, hereinafter abbreviated as SBSN, or can be called as State Sukuk (sharia bonds), is a state securities issued based on sharia/Islamic principles, as evidence for the inclusion to the SBSN assets, both in rupiah and foreign currency. 2. Yield is a payment that can be in the form of lease, margin or profit sharing, or other form of payment in accordance with the contract of SBSN issuance, which is given to the SBSN holder until the expiry of the SBSN period. 3. Buyback of SBSN is SBSN purchases transaction in the secondary market by the Government prior to maturity by cash (cash buyback) and / or by exchange (switching). 4. Auction of the Buyback of SBSN hereinafter referred to as the Auction is the SBSN Buyback which is conducted, in an offering period which is determined and announced before. 5. Bilateral Transactions is an SBSN Buyback which is conducted through a discussion between the Government with a Party or with the Auction Participants who submit an offer for the selling of SBSN. 6. Buyback of SBSN by Cash (Cash Buyback), hereinafter referred to as Cash Buyback is an SBSN buyback which the transaction settlement is performed in cash payment by the Government. 7. Buyback of SBSN by an Exchange (Switching), hereinafter referred to as Switching is an SBSN buyback which the transactions settlement is conducted by the submission of other series of SBSN by the Government and if there is a difference between the value, the settlement of the transaction can be paid in cash. 8. Minister is the Minister of Finance of the Republic of Indonesia. 9. Director General of Debt Management, hereinafter referred to as the Director General is the head of echelon 1 unit in the Ministry of Finance that in charge of debt management. 10. Party is an individual or a group of persons and / or properties which organized either a public body, legal entity or not a legal entity. 11. SBSN Buyback Auction Participants hereinafter referred to as the Auction Participants is banks and securities firms which are appointed by the Minister as the SBSN auction participants in the primary market that meet the administrative requirements to participate in the implementation of SBSN Buyback Auction.

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA - 3 -

12. Auction Offer is the submission of SBSN sales offer by stating the series, the price and the quantity that delivered by the Auction Participants in the SBSN Buyback Auction. 13. Sales offer is an SBSN sales offer which submitted by the Party or by the Auction Participant to the Government in the framework of Bilateral Transactions. 14. Settlement is SBSN transactions settlement which consisting of the funds settlement and the SBSN ownership settlement. 15. Working Day is the day where the payment system operations conducted by the Indonesian Central Bank.

CHAPTER II PROVISIONS OF SBSN BUYBACK Article 2 (1) The Government may performed the SBSN Buyback by: a. Cash Buyback and / or b. Switching. (2) The SBSN Buyback as referred to in clause (1) can be conducted through: a. Auction, or b. Bilateral Transactions. (3) SBSN Buyback through Auction as referred to in clause (2) letter a is conducted through the Auction Participants. (4) SBSN Buyback through Bilateral Transactions as referred to in clause (2) letter b is conducted directly by the Party or through the Auction Participants.

CHAPTER III TERMS AND CONDITIONS OF AUCTION Part one Auction Preparation Article 4 (1) SBSN auction participants in the primary market submit an application as Auction Participant to the Minister in this case to the Director General of Debt Management for getting approval and submit the willingness statement to comply with the provisions as the Auction Participants. (2) Approval of the Minister as referred to in clause (1) is given

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA - 4 -

through the Director General letter or letter from the temporary Director General which is appointed to carry out duties of Director General on behalf of the Minister. (3) To be appointed as Auction Participant, SBSN auction participant in the primary market as referred to in clause (1), shall submit the completeness of administrative requirements to the Director General, which include: a. The willingness statement to comply with the Auction provisions, by using the form as Appendix I which is an integral part of this Ministerial Regulation; b. Letter of Auction Participant representatives appointment which is authorized to performs the Auction transaction, by using a form as Appendix II, which is an integral part of this Ministerial Regulation or if there is a change in representatives appointment shall using the form as Appendix III which is an integral part of this Ministerial Regulation; (4) In the event of a change in administrative completeness as referred to in clause (3), the Auction Participant shall submit the administrative completeness changes to the Director General. (5) The Director of Sharia/Islamic Based Financing on behalf of the Director General give the authorization of approval following the Auction to the Auction Participant representatives who has met the administrative completeness as referred to in clause (3) and (4).

Article 5 Auction Participant may submit the Auction Offer for and on behalf of himself and / or other Party.

Part Two Auction Implementation Article 6 (1) Auctions conducted by the Directorate General of Debt Management in this case the Directorate of Islamic Based Financing. (2) In the event of disruption or technical malfunction in the auction system that results unimplemented in Auction, the Director General or the temporary officer who is appointed to carry out the Director General duties on behalf of the Minister can cancel the Auction implementation. (3) Director General shall submit the cancellation report as referred

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA - 5 -

to in clause (2) to the Minister.

Article 7 In the implementation of the Auction as referred to in Article 6, clause (1), the Directorate General of Debt Management in this case the Directorate of Islamic Based Financing perform, among others: a. Announced the Auction plans not later than 2 (two) hours before the auction, which includes at least: 1) time of the auction implementation; 2) opening and closing time of the Auction Offer; 3) SBSN series to be buyback, in terms of auction by Cash Buyback; 4) series and prices of the exchanger SBSN and series of the exchanged SBSN, in terms of Auctions by Switching; 5) time of the announcement of the Auction results, and 6) Settlement date. b. receive the Auction Offer data from the Auction Participant through the system that used in the Auction; c. submit all the Auction Offer data as referred to in letter b to the Director General in the Auction determination meetings; d. Announcing the Auction results to the Auction Participants on the day of the Auction Implementation.

Article 8 (1) The Auction Offer is conducted by competitive ways. (2) The Auction price determination for winners conducted with a variety price methods (multiple price).

Article 9 The Auction Implementation Procedures is conducted based on the provisions as Appendix IV which is an integral part of this Ministerial Regulation.

Article 10 (1) The Settlement price which is paid by the Government to the Auction Participant who declared as a winner in the auction by

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA - 6 -

Cash Buyback, namely: a. In the amount of proposed price in the Auction Offer (clean price) by calculating the running yields (accrued return), in terms of the Auction with yields in the form of coupons; b. In the amount of proposed price in the Auction Offer (clean price), in terms of the Auction with yields by discount basis. (2) Settlement Price that paid by the Government to the Auction Participant or which is received by the Government from the stated winning Auction Participant in the Auction by Switching manner, is in the amount of the difference in exchanged SBSN price by calculating the difference running Yield (accrued return). (3) Calculation of the Settlement prices per SBSN unit in terms of Auctions by Cash Buyback is performed based on the formula in Appendix V which is an integral part of this Ministerial Regulation. (4) Calculation of the Settlement prices per SBSN unit in terms of Auctions by Switching is performed based on the formula in Appendix VI which is an integral part of this Ministerial Regulation.

Part Three Determination of Auction Results Article 11 (1) Director General or a temporary replacement officer who appointed to perform the Director General duties on behalf of the Minister determined the Auction results. (2) Determination of Auction results as referred to in clause (1) is the full acceptance or in part acceptance, or reject all incoming Auction Offer. (3) Determination of Auction results are based on considerations such as price, time of sales bid submission, volume, maturity and credit risk management.

Article 12 Islamic Based Finance Directorate submit the Auction results to the Auction Participant that declared as a winner, which contains information that at least includes: a. SBSN series; b. SBSN price;

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA - 7 -

c. SBSN nominal amount.

Article 13 Directorate General of Debt Management announcing the auction results to the public, that contains information at least includes: a. SBSN series; b. considered average price of each SBSN series; c. SBSN nominal amount.

CHAPTER IV TERMS AND CONDITIONS OF BILATERAL TRANSACTION Part One Preparation of Bilateral Transactions Article 14 (1) Bilateral transactions can be performed by: a. Party, or b. Auction Participant. (2) The Party as referred to in clause (1) letter a, submit a sales offer to the Government for and on behalf of itself. (3) Auction Participant as referred to in clause (1) letter b submit a sales offer to the Government for and on behalf of itself and / or on behalf of another party.

Article 15 Sales offer in the Bilateral Transactions by a Party or the Auction Participant, as referred to in Article 14 can be conducted with an offer nominal value at least of IDR 250.000.000.000, 00 (two hundred and fifty billion rupiahs) for a series.

Article 16 The Auction Participant that can submit an SBSN Sales offer to the Government as referred to in Article 14 clause (1) letter b shall meet the following requirements: a. Submit the SBSN auction purchase offer in the primary market consecutive in five (5) times of the last auction;

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA - 8 - b. Won the SBSN auctions in the primary market or get allotment at least 3 (three) times in the implementation of the 5 (five) times of the last auction, and c. Actively trading SBSN in the secondary market, at least 5 (five) selling and / or buying frequencies in the last one month.

Part Two Implementation of Bilateral Transactions Article 17

(1) The Sales offer by the Party or by the Auction Participant as referred to in Article 14 clause (2) and clause (3) shall be submitted to the Minister in this case to the Director General with a copy to the Director of Islamic Based Financing.

(2) The Sales offer as referred to in clause (1) shall at least include: a. nominal value; b. SBSN series that sold; c. the price that offered, and d. The exchanger SBSN series along with the desired price in terms of Switching.

Article 18 (1) The Sales offer by using Bilateral Transactions method as referred to in Article 17 clause (1), is followed up by the Directorate General of Debt Management in this case the Directorate of Islamic Based Financing in no later than 7 (seven) working days from the receipt of the sales offer. (2) The Followed up as referred to in clause (1) may include the full acceptance or in part or a rejection of the sales offer. (3) Rejection of the sales offer as referred to in clause (2) can be implemented by these considerations: a. non-compliance of the provisions as referred to in Article 14, Article 15 and Article 16; b. condition of the government debt portfolio, or c. The financial market conditions. (4) The Rejection as referred to in clause (3) shall be submitted by a letter from Director General or by a temporary official who is

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA - 9 -

appointed to carry out the Director General duties on behalf of the Minister. (5) Acceptance of the Sales Offer as referred to in clause (2) is followed up with a discussion of the terms and conditions of SBSN that to be buyback and / or exchangers series in the term of Switching.

Article 19 (1) The discussion as referred to in Article 18 clause (5) conducted by the Directorate General of Debt Management in this case the Directorate of Islamic Based Financing with the Party or the Auction Participant who submitted the Sales Offers. (2) The Discussions as referred to in clause (1) regarding the terms and conditions of SBSN to be buyback, at least include: a. SBSN series; b. nominal value; c. price or yield, and d. The time and mechanism of the Settlement implementation.

Article 20 (1) The results of the Discussion as referred to in Article 19 can be in the form of full acceptance or in part, or reject the entire sales offer, as outlined in the official report of the discussion. (2) In the event of the results of the discussion is in the form of a full acceptance or in part of the sales offer, the results of the discussion shall contained in the agreement document. (3) The agreement document as referred to in clause (2) shall contain at least: a. SBSN series; b. nominal value; c. price or yield, and d. The time and mechanism of the Settlement implementation. (4) The discussion official report and the agreement document as referred to in clause (1) and clause (2) shall be signed by the Director of Islamic Based Financing, Directorate General of Debt Management with directors / official who authorized as the representative of the Party or Auction Participant who submit the Sales Offers.

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA - 10 -

Part Three Determination of Bilateral Transactions Article 21 The Director General or a temporary official who appointed to carry out the Director General duties on behalf of the Minister, no later than in 2 (two) working days before the Settlement date shall determined the SBSN buyback result that includes: a. agreement documents; b. SBSN terms and conditions document and / or the amendments.

Article 22 The Director of Islamic Based Financing on behalf of the Director General submit the SBSN buyback result as referred to in Article 21, to the Party or to the Auction Participant, which at least include: a. SBSN series; b. SBSN price; c. SBSN nominal amount.

Article 23 Directorate General of Debt Management announced the SBSN buyback result to the public, which contains information at least includes: a. SBSN series; b. weighted average price of each series SBSN; c. SBSN nominal amount.

CHAPTER V SETTLEMENT Article 24 (1) Settlement for the transactions through an Auction, conducted in 3 (three) Working Days after the date of the SBSN Auction implementation (T +3). (2) Settlement for the Bilateral Transactions, performed at least 3 (three) Working Days after the signing of the agreement documents of the SBSN buyback (T +3).

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA - 11 -

Article 25 (1) Auction results Settlement conducted only to the Auction Participant who is declared as a winner either on their own behalf or for the benefit of others. (2) Auction Participant who is declared as a winner responsible for the Auction result Settlement as referred to in clause (1).

Article 26 (1) Bilateral Transactions Settlement conducted only to the Auction Participant or to the Party who is declared as a winner. (2) The Auction Participant or the Party who is declared as a winner responsible for the Bilateral Transactions Settlement as referred to in clause (1).

Article 27 The Transactions as referred to in Article 24 shall be reported as the over the counter transactions by the Auction Participant to the Recipient of Securities Transaction Report (PLTE) that established by the Capital Market Authority.

Article 28 The SBSN which is buyback by the government can be expressed paid off and no longer valid.

Article 29 Further provisions on the technical of the Settlement implementation are following the requirements that prescribed by the Indonesian Central Bank.

CHAPTER VI SANCTIONS Article 30 (1) Auction Participant who is declared as a winner and did not submit the SBSN which was won until the date of settlement, then the Auction Participant: a. shall complete the transactions which failed not later than 2

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA - 12 -

(two) Working Days after the settlement date; b. not allowed to participate in the SBSN auction activities in the primary market and in the Auction Market during the completion of the transaction as referred to in letter a, and c. not receive the running yields (accrued return) from the date of settlement until the date of submission as referred to in letter a, in which case the auction conducted on SBSN with Yields (coupons). (2) The Party which the sales offer is accepted by the Government and did not submit the SBSN which was won until the date of settlement, then the parties: a. shall complete the transactions which failed not later than 2 (two) Working Days after the settlement date; and b. not receive the running yields (accrued return) from the date of settlement until the date of submission as referred to in letter a, in which case the SBSN buyback conducted on SBSN with Yields (coupons).

Article 31 In terms of the Auction Participant who is declared as a winner does not execute the provisions as referred to in Article 30, the Auction Participant is not allowed to participate in 1 (one) time of the next Auction.

Article 32 (1) The Auction Participant and the Party who is declared as a winner and did not complete the transaction in 2 (two) Working Days as referred to in Article 30 clause (1) letter a and clause (2) letter a, subject to sanctions as follows: a. announced to the public; b. not allowed to participate in the SBSN Auction in the primary market and in the Auction market cumulatively for three (3) times in a row, and c. reported to the authorities in the field of banking and capital markets. (2) The transactions which are not completed as described in clause (1) will be declared void.

CHAPTER VII

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA - 13 -

ISSUANCE COSTS Article 33 Any costs incurred in the implementation of SBSN buyback will be charged to the State Budget.

CHAPTER VIII CLOSING PROVISIONS Article 34 This Ministerial Regulation shall come into force on the date of promulgation. For public cognizance, it is ordered to promulgate this Ministerial Regulation by placing in the Official Gazette of the Republic of Indonesia.

Stipulated in Jakarta on 8 April 2013 MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

Signed.

AGUS DW MARTOWARDOJO

Promulgated in Jakarta on 12 April 2013 MINISTER OF JUSTICE AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA, Signed. AMIR SYAMSUDIN

OFFICIAL GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2013 NUMBER 572

APPENDIX I REGULATION OF THE MINISTER OF FINANCE NUMBER 75/PMK.08/2013 ON BUYBACK OF SHARIA SECURITIES

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

[COMPANY HEADER]

Letter of Statement

Today, ...... date ..... [name], acting as [position] of and therefore for and on behalf of [company], having domicile in [address], hereby stated that we as the Participant of the Auction of Buyback of Sharia Securities, agree: a. to comply with all provision associated with the Auction of the Buyback of the Sharia Securities as set out in the Regulation of the Minister of Finance on the Buyback Auction of the Sharia Securities. b. to accept the result of Auction stipulated by the Minister of Finance. c. to accept the responsibility on the demand from the third party against the Minister of Finance due to the breaches that we made against the prevailing provisions in the Buyback Auction of the Sharia Securities that results the loss of the third party.

The Authorized Official

(This Letter of Statement shall be signed upon adequate stamp duty by the Authorized Official to act on behalf of the company in accordance with the Article of Association of the company, along with the company's official stamp (if any)

Signature

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

Signed

MUHAMAD CHATIB BASRI Copy as its original version HEAD OF GENERAL BUREAU for him HEAD OF THE ADMINISTRATIVE DEPARTMENT OF THE MINISTRY signed and stamped

GIARTO NIP 195904201984021001

APPENDIX II REGULATION OF THE MINISTER OF FINANCE NUMBER 75/PMK.08/2013 ON BUYBACK OF SHARIA SECURITIES

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

[COMPANY HEADER] Jakarta, Minister of Finance of the Republic of Indonesia c.q Directorate General of Debt Management Gedung Frans Seda 5th Floor Jl. Wahidin Raya No. 1 Jakarta 10710

Subject : Appointment of the representatives of Auction Participant of the Buyback Sharia Securities who are authorized to carry out Auction transaction

Dear Sir,

In regard with the provision of Article 3 section (3) letter b of the Regulation of the Minister of Finance Number /PMK.08/ .... on the Buyback of the Sharia Securities, hereby we as the Participant of the Auction of Sharia Securities delivers the names of representative that are appointed to carry out the transaction in the Auction in question, namely: No Name Designation Signature 1 2 3

In witness whereof, thank you very much for your kind attention. The Authorized Official

Signature

Cc: Director of Sharia Finance

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

Signed

MUHAMAD CHATIB BASRI Copy as its original version HEAD OF GENERAL BUREAU for him HEAD OF THE ADMINISTRATIVE DEPARTMENT OF THE MINISTRY signed and stamped

GIARTO NIP 195904201984021001

APPENDIX III REGULATION OF THE MINISTER OF FINANCE NUMBER 75/PMK.08/2013 ON BUYBACK OF SHARIA SECURITIES

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

[COMPANY HEADER]

Minister of Finance of the Republic of Indonesia c.q Directorate General of Debt Management Gedung Frans Seda 5th Floor Jl. Wahidin Raya No. 1 Jakarta 10710

Subject : The change name of the representatives who are appointed to carry out transaction of the Auction of Buyback of SBSN

Dear Sir,

Referring to our letter dated ...... on the subject of appointment for the representative of Auction Participant on the Buyback of Sharia Securities to carry out Buyback of SBSN, and in accordance with the provision of Article 3 section (3) letter b of the Regulation of the Minister of Finance Number ..../PMK.08/.... on Buyback of Sharia Securities, hereby we as the Participant of the Auction of the Buyback of Sharia Securities delivers the change on name of the representative that are appointed to carry out transaction in the Auction of Buyback of SBSN in question. List of the replaced names, namely: No Name Designation Signature 1 2 3

List of the appointed representative name are: No Name Designation Signature 1 2 3

In witness whereof, thank you very much for your kind attention. The Authorized Official (This Letter of Statement shall be signed upon adequate stamp duty by the Authorized Official to act on behalf of the company in accordance with the Article of Association of the company, along with the company's official stamp (if any) Signature

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

Cc: Director of Sharia Finance MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

Signed

MUHAMAD CHATIB BASRI Copy as its original version HEAD OF GENERAL BUREAU for him HEAD OF THE ADMINISTRATIVE DEPARTMENT OF THE MINISTRY signed and stamped

GIARTO NIP 195904201984021001

APPENDIX IV REGULATION OF THE MINISTER OF FINANCE NUMBER 75/PMK.08/2013 ON BUYBACK OF SHARIA SECURITIES

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

IMPLEMENTING PROCEDURE FO THE AUCTION OF THE BUYBACK OF SHARIA SECURITIES

1. Directorate Sharia Finance announces the plan of Buyback Auction of SBSN to the public through the auction system and mass media on the auction of buyback Sharia Securities, which includes at least matters as follow: a. date of auction implementation; b. opening and closing time for Auction Offer; c. serial of the Sharia Securities to be bought back and serial of the Sharia Securities that can be switched, in case the Auction is carried out by Switching; d. time of auction result announcement; e. date of settlement 2. On the date of Auction implementation of the Buyback of SBSN, the Participant of SBSN Buyback Auction proposes the Offer to the Directorate Sharia Finance from 10.00 WIB up to 13.00 WIB through the Auction system of SBSN Buyack. 3. Participant of SBSN Buyback Auction proposes the Offer of Auction through the Auction System of SBSN in conditions as follow: a. Proposal of Auction Offer shall be carried out by the appointed representative by the Participant of the Sharia Securities Buyback Auction to carry out the transction of SBSN Buyback Auction and has obtained authorization of the Directorate of Sharia Finance. b. Participant of SBSN Buyback Auction shall be responsible on the accurateness of the proposed Auction Offer data, either of which is proposed for and on behalf of its own and/ or for the interest of the other party. c. In case the sales is the party other than the Participant of SBSN Buyback Auction, then the Participant of SBSN Buyback Auction shall be obliged to ensure the availability of SBSN owned by the sales. 4. Auction Offer that has been proposed cannot be cancelled. 5. Participant of SBSN Buyback Auction could make the change on price or quantity that are proposed in condition as follow: a. The change on price or quantity of the offer could only be made in case the change of price or quantity to be proposed lower than the price or the previous offer quantity; b. The change of offer price as set forth in letter a shall be made prior the closing time of Auction Offer, and does not affect the sequence offer submission time; c. The change on offer quantity s set forth in letter a could only be made at least 30 minutes prior the closing time of Auction Offer, and does not affect the sequence offer submission time; 6. Auction Offer shall be arranged as follow:

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

a. Participant of SBSN Buyback Auction proposes serial of SBSN that are offered; b. Auction Offer shall be stated in price; c. Price unit shall be determined in the form of percentage up to 2 (two) decimal. d. Submission of Auction Offer quantity from the respective Participant of SBSN Buyback Auction at least 1000 (one thousand) unit or equal to the nominal value as much as Rp1.000.000.000,00 (one billion rupiah) and the excess with the multiplies of 1.000 (one thousand) unit or equal to the nominal value as much as Rp1.000.000.000, 00 (one billion rupiah). e. Price Offer shall be submitted in the multiply of 0,05% (zero point zero five percent).

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

Signed

MUHAMAD CHATIB BASRI Copy as its original version HEAD OF GENERAL BUREAU for him HEAD OF THE ADMINISTRATIVE DEPARTMENT OF THE MINISTRY signed and stamped

GIARTO NIP 195904201984021001

APPENDIX V REGULATION OF THE MINISTER OF FINANCE NUMBER 75/PMK.08/2013 ON BUYBACK OF SHARIA SECURITIES

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

PRICE CALCULATION SETTLEMENT FOR THE BUYBACK IN CASH

Settlement price per unit SBSN with the coupon shall be calculated as follow: Psc = (P x N) + AR

where, Psc = settlement price per unit P = clean price per unit SBSN in percentage up to 2 (two) decimal and in the multiply of 0.25% (zero point twenty-five percent); N = Nominal value of SBSN per unit AR = accrued return per unit of SBSN with the calculation basis of actual, that is calculated as follow:

AR = N x x

where, c = coupon rate n = payment frequency of the coupon in a year; a = actual days that are calculated since 1 (one) day after the coupon period is commenced up to the date of settlement; E = actual days that is calculated since 1 (one) day after the coupon period up to the date of the next coupon payment, at which the settlement implementation is carried out. Accrued return shall be rounded into full rupiah, in condition that if it is under and equal to 50 (fifty) cent shall be rounded into zero, however upper 50 (fifty) cent shall be rounded becomes Rp1,00 (one rupiah).

Model Calculation

On March 5, 2013, the Government buyback SBSN Serial of IFR0001 with nominal value per unit as much as Rp1.000.000 (one million rupiah) and with the coupon as much as 11,80% (eleven point eighty percent) per year. This SBSN shall be mature on August 15, 2015 and the coupon shall be paid on back on February 15 and August 15 at every month. In case the agreed clean price is as much as 97,75% (ninety-seven point seventy-five percent) and settlement is carried out on 8 March, then the settlement price of SBSN per unit shall be calculated with the steps as follow:

P = 97,75% (ninety-seven point seventy-seven percent); N = Rp1.000.000,00 (one million rupiah); c = 11,80% (eleven point eighty percent

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

n = 2 (two) times in one year (semi annually), which is each February 15 and August 15; a = 21 (twenty-one) days, which is the amount of actual days that are calculated since 1 (one) day after the date of commencement of the coupon period (16 February 2013) up to the settlement date (March 8, 2013); E = 181 (one hundred and eighty-one) days, which is actual days that are calculated since 1 (one) day after the commencement date of the coupon period up to the next payment date of the coupon, at which settlement implementation is occurred (February 15, 2013 up to August 15, 2013);

Step 1: Accrued return per unit shall be calculated as follow: AR = Rp1.000.000,00 x x = Rp6.845,30 = Rp6.845,00

So that the accrued return per unit of SBSN serial IFR0001 that is paid by the Government after being rounded shall be Rp6.845,00 (six thousand eight hundred forty-five rupiah).

Step 2: Settlement price per unit shall be calculated as follow:

Psc = (P x N) + AR = (97,75% x Rp1.000.000,00) + Rp6.845,00 = Rp977.500,00 + Rp6.845,00 = Rp984.345,00 So that the settlement price per unit SBSN serial IFR0001 that is paid by the Government after being rounded shall be Rp984.345,00 (nine hundred eighty-four thousand three hundred forty-five rupiah). MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

Signed

MUHAMAD CHATIB BASRI Copy as its original version HEAD OF GENERAL BUREAU for him HEAD OF THE ADMINISTRATIVE DEPARTMENT OF THE MINISTRY signed and stamped

GIARTO NIP 195904201984021001

APPENDIX VI REGULATION OF THE MINISTER OF FINANCE NUMBER 75/PMK.08/2013 ON BUYBACK OF SHARIA SECURITIES

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

Calculation of the Cash Difference of the Buyback by Switching

Cash difference per unit of SBSN with the coupon that is calculated as follow: Pss = [(POffer - PGov) x N] + (AROffer - ARGov) where, PSS = cash difference per unit; POffer = clean price per unit SBSN that is offered by the Auction Participant, in percentage up to 2 (two) decimal and within the multiply of 0,05% (zero point zero five percent); PGov = clean price per unit SBSN that is offered by the Government, in percentage up to 2 (two) decimal and within the multiply of 0,05% (zero point zero five percent); N = nominal value of SBSN per unit AROffer = accrued return per unit SBSN that is offered by the Auction Participant, with the actual calculation basis.

ARGov = accrued return per unit SBSN that is offered by the Government, with the actual calculation basis.

Accrued return per unit shall be calculated as follow:

AR = N x x

Accrued return shall be rounded into full rupiah, with the condition if lower than or equal to 50 (fifty) cent shall be rounded to zero, however for the upper than 50 (fifty) cent shall be rounded to Rp1,00 (one rupiah).

Model Calculation

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

On March 5, 2013, Government buybacks SBSN Serial IFR0001 with the nominal value Rp1.000.000,00 (one million rupiah) and with coupon as much as 11,80% (eleven point eighty percent) per year. SBSN Serial IFR0001 shall be mature on February 15, 2015 and coupon is paid in back on February 15 and August 15 at every year. The buyback is carried out by switching each 1 (one) unit SBSN serial IFR0001 with 1 (one) SBSN Serial PBS004 with coupon 6,1% (six point one percent) per year that will be mature on February 15, 2037. Coupon of SBSN Serial PSB004 is paid in back on February 15 and August 15 at every year. If clean price of SBSN serial PBS004 is determined as much as 99,75% (ninety-nine point seventy five percent) and clean price of SBSN serial IFR0001 is agreed as much as 105,75% (one hundred and five point seventy-five percent), as well the settlement is carried out on March 8, 2013, then the cash difference per unit SBSN shall be calculated with the step as follow:

POffer =105,75% (one hundred and five point seventy-five percent); PGov = 99,75% (ninety-nine point seventy-five percent); N = Rp1.000.000,00; COffer =11,08% (eleven point eighty percent);

CGov = 6,10% (six point ten percent); nOffer = 2 (two) times in a year (semi annually), which is every February 15 and August 15; nGov = 2 (two) times in a year (semi annually), which is every February 15 and August 15; aOffer = 21 (twenty-one) days, which is the actual days calculated since 1 (one) day after the commencement date of coupon period (February 16, 2013) up to the date of settlement (March 8, 2013); aGov =21 (twenty-one) days, which is the actual days calculated since 1 (one) day after the commencement date of coupon period (February 16, 2013) up to the date of settlement (March 8, 2013) ;

EOffer = 181 (one hundred and eighty-one)n days, which is the actual day that is calculated since 1 (one) day after the commencement date of coupon period up to the next coupon payment, at which the implementation of settlement is occurred (February 16, 2013 up to August 15, 2013);

EGov = 181 (one hundred and eighty-one)n days, which is the actual day that is calculated since 1 (one) day after the commencement date of coupon period up to the next coupon payment, at which the implementation of settlement is occurred (February 16, 2013 up to August 15, 2013); AlOffer = accrued return per unit SBSN that is offered by the Auction Participant, with the actual calculation basis;

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

AlGov = accrued return per unit SBSN that is offered by the Government, with the actual calculation basis;

Step 1: Accrued return per unit shall be calculated as follow:

AROffer = Rp1.000.000,00 x x = Rp6.845,30 = Rp6.845,00

ARGov = Rp1.000.000,00 x x = Rp3.538,67 = Rp3.539,0

Step 2: Cash difference per unit shall be calculated as follow: Pss = [(105,75% - 97,75%) x Rp1.000.000,00] + (Rp6.845,00 - Rp3.539,0) = Rp60.000,00 + Rp14.050,00 = Rp74.050,00

So that the settlement per unit SBSN is carried out by switching 1 (one) unit SBSN IFR0001 with 1 (one) unit SBSN Serial PBS004 and in this matter Investor pays the cash difference as much as Rp74.045,00 (seventy-four thousand and fifty rupiah).

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA

Signed

MUHAMAD CHATIB BASRI Copy as its original version HEAD OF GENERAL BUREAU for him HEAD OF THE ADMINISTRATIVE DEPARTMENT OF THE MINISTRY signed and stamped

GIARTO NIP 195904201984021001