Article 12 1
The issuing of obligations in the context of recruiting public funds by PERUM shall be stipulated in a Government Regulation.
2 PERUM shall inform of its plan for issuing obligations as meant in paragraph
1 to certain creditors.
Article 13 1
The deduction of participation of the State capital by PERUM which recruits public funds as meant in Article 12, paragraph 1, shall be notified to the
creditors before it is stipulated in a Government Regulation in conformity with the provisions of Article 9.
2 The deduction of capital participation as intended in paragraph 1 shall not
inflict third party’s interests.
CHAPTER III USING PROFITS
Article 14
1 Every fiscal year, PERUM shall put aside a certain amount from its net profits
for reserves of objectives, depreciations, and other reasonable reductions. 2
45 of the balance of the amount set aside from the net profits as meant in paragraph 1 shall be used for :
a. general reserve until it reaches at least twice of the subcribed scapital;
b. social and educational funds;
c. returns of production;
d. contribution for pension funds; and
e. donation and contribution for indemnity
3 The percentage of distribution of PERUM’s net profits as meant in paragraph
2 shall further be stipulated by the Minister of Finance. Article 15
1 The whole net profits, after deduction is made from the amount set aside as
intended in Article 14, shall be disbursed as Overall Development Funds. 2
The Overall Development Funds, which the State is entitled to, shall be paid to the State’s General Treasurer soon after the Annual Report is ratified in
accordance with the provisions stipulated in this Government Regulation.
CHAPTER IV BOARD OF DIRECTORS
Article 16
1 The management of PERUM is carried out by the Board of Directors.
2 The members of the Board of Directors are 5 five persons, one which is
designated as President Director. 3
The adding of the members of the Board of Directors exceeding the number of Directors as indicated in paragraph 2, shall be carried out with approval from
the President. 4
Those capable of being appointed as Directors are individuals meeting the criteria of expertise, integrity, leadership, experience and good conduct, with
dedication to develop business for the progress of the corporation. 5
In addition to the conditions indicated in paragraph 4, those capable of being appointed as Directors are individuals who are qualified to take legal actions
and who have never been declared bankrupt or who once became members of Board of Directors, Commissioners of Supervisory Board, who were declared
guilty, and who caused a corporation or PERUM to have been declared bankrupt.
Article 17 1
Members of the Board of Directors shall be appointed and release by the Minister of Finance by virtue of recommendation from the Minister.
2 Members of the Board of the Directors shall be appointed for 5 five
years’terms of office, and can be re-appointed. Article 18
1 The Finance Minister after learning from the Minister’s opinion, can discharge
a member of the Board of Directors before termination of his terms of office, if based on facts, the member of the Board of Directors :
a. does not perform his duties well;
b. does not implement the provisions contained in the legislations andor the
provisions stipulated in the Regulation on the Establishment of PERUM; c.
is involved in an action inflicting PERUM; d.
is sentenced into imprisonment because of committing crime andor mistakes in relation to the management of the corporation.
2 The Decision on the Discharge as meant in paragraph 1 shall be made after
the person concerned is given opportunity to defend himself. 3
With the Decision as meant in paragraph 2, his position as a member of Board of Directors terminates.
Article 19 1
The regulation on the job description and authority of a member of Board of Directors and the amount and kinds of remuneration of the Board of Directors,
is stipulated by the Finance Minister. 2
The Finance Minister’s authority as intended in paragraph 1 can be delegated to the Minister.
Article 20 The Board of Directors is fully responsible for PERUM’s management in the
interests and objectives of PERUM, and represent PERUM in and out of court. Article 21
1 Every member of the Board of Directors reserve the right to represent
PERUM, unless otherwise stipulated in the Articles of Association. 2
A member of the Board of Directors is not authorized to represent PERUM, if : a.
there is a lawsuit before the court between PERUM and the member of the Board of Directors himself;
b. the member of the Board of Directors has an interest contrary to PERUM’s
interest. 3
In the Articles of Association, the person who reserves the right to represent PERUM shall be stipulated, whenever a situation as intended in paragraph 2
prevails. 4
In case the Articles of Association do not stipulate the provisions indicated in paragraph 3, the Minister of Finance shall represent PERUM.
Article 22 1
In performing its duties, the Board of Directors shall pay full attention and devotion to the duties, obligations and achievement of PERUM’s objectives.
2 A member of the Board of Directors is forbidden to hold another position as
mentioned below : a.
President Director ar Director of a State-Owned Corporation, a Regional Government-Owned Corporation, a private company or another position
relating to the management of a company.
b. another structural and functional position in an institutionagency of the
central and regional governments. c.
another position as stipulated in the Regulation on the Establishment of PERUM an in the legislations in force.
Article 23
The Board of Directors shall maintain minutes of meeting and PERUM’s accounting records.
Article 24 Procedures of sales, transfers of ownership, or imposition on PERUM’s fixed
assets, the receiving of middlelong term loans and the granting of loans through whatever kinds of forms and methods without seeking repayments, and the writing
off of accounts receivable and stock of goods by PERUM from its accounting records, shall be stipulated by Minister of Finance.
Article 25 1
The Board of Directors can only submit a request to the District Court for the declaration of PERUM’s bankruptcy with approval from the Minister of
Finance. 2
If bankruptcy occurs because of the Board of Directors’ mistakes or negligence and PERUM’s assets fail to overcome the possibility resulting from the
bankruptcy, every member of the Board of Directors shall be mutually responsible for the losses.
3 Members of the Board of Directors who can prove that the bankruptcy is not
due to their faults or negligence, are not mutually responsible for the losses.
Article 26 1
The Board of Directors shall prepare a Long Term Plan which constitutes a strategic plan containing PERUM;s targets and objectives to be obtained in a 5
five year period. 2
The long term plan as intended in paragraph 1 shall at least contain : a.
evaluation of implementation of the previous Long Term Plan; b.
PERUM’s present position; c.
the assumptions used in preparing the Long Term Plan; d.
stipulation of the targets, strategy, policies and work program of the Long Term Plan.
3 The Design of the Long Term Plan already signed jointly with by the
supervisory Board shall be submitted to the Minister of Finance through the Minister for legalization.
4 The legalization by the Finance Minister as indicated in paragraph 3 shall be
carried out after being discussed jointly with the Minister. 5
The form, contents and procedure for the preparation of the Long Term Plan as arranged in paragraphs 1 and 2 shall be stipulated by the Finance Minister.
Article 27 1
The Board of Directors shall prepare a Work Plan and Corporate Budget as the annual specifications of the Long Term Plan.
2 The Work Plan and The Corporate Budget shall be submitted to the Finance
Minister through the Minister, at the latest 60 sixty days before the start of the fiscal year, for legalization.
3 The Work Plan or Corporate Budget concerned shall be legalized by the
Finance Minister at the latest 30 thirty days after the start of the fiscal year. 4
In case the Work Plan and Corporate Budget have not yet been legalized as indicated in paragraph 2, the Work Plan and Corporate Budget shall be
considered lawful for implementation as far as they meet the provisions on the procedures for preparation of the Work Plan and Corporate Budget.
5 The authority of legalizing the Work Plan and Corporate Budget as meant in
paragraph 2 can be delegated by the Finance Minister to the Minister. 6
The form, content and procedure for preparing the Work plan and Corporate Budget shall be stipulated by the Finance Minister.
Article 28 Within 5 five months after the closing of PERUM’s fiscal year, the Board of
Directors shall submit an annual report to the Finance Minister and the Minister, which contains at least :
a. annual calculation consisting of balance sheet of the pre fiscal year and
calculation of profitloss of current fiscal year and explanation of the documents concerned;
b. report on PERUM’s situation and performance and the results achieved;
c. PERUM’s main activities and amendments during fiscal year;
d. specifications of problems arising during fiscal year which affect PERUM’s
operations; e.
names of Board of Directors and Supervisory Board. f.
salaries and other allowances of the Board of Directors and Supervisory Board.
Article 29 1
The Annual Report shall be signed by all members of the Board of Directors and the Supervisory Board, and shall be submitted to the Finance Minister and
the Minister. 2
If one or more members of the Board of Directors or Supervisory Board doesdo not sign the annual report as meant in paragraph 1, the reasons shall
be mentioned in writing.
Article 30 1
The annual calculation shall be made in accordance with the Finance Accountancy Standard.
2 If the Finance Accountancy Standard as meant in paragraph 1 cannot be
implemented properly, the explanation and reasons shall be mentioned in writing.
Article 31
1 The Board of Directors shall submit the annual calculation to the Supervisory
Body of Financial and Development Affairs BPKP or Public Accountant designated by the BPKP for auditing purposes.
2 For PERUM which recruits public funds, the audit of annual calculation shall
be carried out by Public Accountant. 3
The report on the results of audit by public accountant as meant in paragraphs 1 and 2, shall be submitted in writing to the Finance Minister for
legalization. 4
In case the obligation as meant in paragraphs 1 and 2 is not met, the legalization of the annual calculation cannot be carried out.
5 The annual calculation as meant in paragraphs 1 and 2 after receiving a
legalization from the Finance Minister, shall be announced in daily newspapers.
Article 32 1
The approval of annual report and legalization of annual calculation shall be given by the Finance Minister.
2 In case the documents of annual calculation prepared turn out to be incorrect
andor misleading, the members of the Board of Directors and Supervisory Board are mutually responsible for the mistakes to the inflicted party.
3 The members of the Board of Directors and Supervisory Board are freed from
the responsibility as meant in paragraph 2 if the mistakes proved to haven’t been due them.
Article 33 The Board of Directors shall submit regular reports to the Supervisory Board, with
copies to tha Finance Minister and the Minister.
CHAPTER V THE SUPERVISORY BOARD
