Nurdin Halid, however, manipulated FIFA Statute Article 32 on Composition. (Exhibit 1)

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3 Indonesian football is unique and distinctive. It has just broken away from allegedly acorrupt regime of match fixing and unlimited misuse of public funds/government subsidy (APBD) to run and compensate professional football clubs. The use of APBD has two negative impacts, namely (1) abundant access to corruption of public funds and (2) prohibits clubs to move into professionally profitable institutions. Another side impact is the tendency to manipulate clubs as political vehicles of the local government officials and politicians. Bear in mind, APBD that should be used and distributed for the benefits of the public (infrastucture, schools, hospitals, etc.) was allocated to professional football clubs. Indonesian football league is currently undergoing rapid and massive changes under legitimate successor with Djohar Arifin Husin as the President of the Football Association of Indonesian (PSSI). PSSI members through Extra Ordinary Congress elected Djohar and his other Executive Committee memberson July 9th, 2011 that lead into the birth of New Era of Indonesian football. Nonetheless, reform efforts by the New Era are being challenged by the previous regime and their network across the country and abroad to resume control of PSSI, its professional football league and national team. Reconciliation was offered, but denied. PSSI under Djohar Ariffin Husin will continue making changes and improvements, despite the hindrance. The current leadership has also focused on sustainable education programs for training youth players. i

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5 DEC JAN FEB MAR MAY MAY JUL JUL SEPT OCT DEC JAN JAN 2011 The Indonesian Football Association (PSSI) President Nurdin Halid was trialed for multiple corruption cases of illegal sugar import and palm oil distribution. President Nurdin Halid was found guilty and convicted with 2 years imprisonment of multiple corruption cases. Vice President of the Republic of Indonesia Jusuf Kalla, Sports and Youth Minister Adyaksa Dault and Indonesian National Sports Committe President Rita Subowo advice that Nurdin should step down due to ethics. Nurdin Halid, however, manipulated FIFA Statute Article 32 on Composition. (Exhibit 1) Public Pressure against President Nurdin Halid to step down accumulated following Indonesian national teamís defeat to Myanmar 1-3 in SEA Games Laos. President of the Republic of Indonesia Susilo Bambang Yudhoyono held a special meeting with his cabinet on national football. Co-ordinating Minister of People s Wellfare Agung Laksono and Minister of Youth and Sports announced the plan to hold a National Football Congress. The National Football Congress was held and constructed a seven-point Malang Recommendations for the PSSI to reform its organization and programs. Recommendations were ignored and the National Football Reform Movement (GRSNI) was formed. GRSNI held a discussion forum with various sources, including international football experts and attended by the Ministry of Youth and Sports and the Indonesian National Sports Committee. GRSNI member send an open letter through Koran Tempo (a national media) that reforms in football was imperative. The President of the Republic of Indonesia held a discussion with GRSNI. GRSNI and Clubs participating in the PSSI s Indonesia Super League declared their concerns on Indonesian football under Nurdin Halid s leadershi; they vowed to stop the use of public funds and tackling match-fixing practices. Professional clubs and regional PSSI members initiated the declaration of Liga Primer Indonesia. Liga Primer Indonesia submitted a formal letter of affiliation to PSSI, but was rejected by PSSI. Indonesian government did not show any resentment on the idea of Liga Primer Indonesia Liga Primer Indonesia kicked off, with 19 participating clubs. Its main objective was nurturing public knowledge on the real potential of professional football league and encouraging the contribution from business community instead of reliying upon public funds for professional clubs. ii

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7 21-23 JAN FEB FEB FEB FEB MAR MAR MAR APR APR APR APR 2011 Nurdin Halid conducted a Congress in Bali, ignoring and breaching FIFA Statutes and PSSI own Statutes in regard to his status (convicted guilty in corruption case). There was no outcome from the Congress aside from its main agenda to determine the Extra Ordinary Congress schedule. (Exhibit 2) Election Committee approved Nurdin Halid to participate in the coming election, while another strong candidate was denied without any proper reasoning. Hundred of thousands of football supporters from all regions held a peacefull strike in Jakarta and regional areas wanting to reform PSSI. The Appeals Committee then denied Nurdin Halid candidacy, along with the other candidateís appeal. PSSI General Secretary Nugraha Besoes wrote a letter to FIFA stating that the Appeals Committee had revoked all candidates, thus there were no candidate for the coming election. FIFA Executive Committee decided that the PSSI must hold a Congress based on FIFA Statutes to elect new Election Committee and Appeals Committee on 26 Mar And to hold a Congress to elect the next PSSI President and Executive Committee members by 30 Apr 2011 PSSI held a Congress in Pekanbaru, Riau. Yet, the PSSI left the Congress before it began. The Congress was continued by members to vote for Election Committee and Appeals Committee The current turbulence has led the Indonesian government to ignore PSSI under Nurdin Halid leadership because he was considered failing to manage the organization properly and he kept denying the need to reform his organization. FIFA Emergency Committee issued a decision to suspense Nurdin Halid, discharged PSSI Executive Committee and formed a Normalization Committee. Normalization Committee and voters held a Congress in Jakarta and agreed on the Election Committee and Appeals Committee as decided on 26 Mar 2011 and to conduct the next Congress on 20 May Indonesian Anti-Corruption Committee issued a study on corruption possibilities using public funds (APBD) throughprofessional footbal clubs. (Exhibit 3) Normalization Committee Chairman Agum Gumelar visited FIFA Head Office. 21 APR 2011 FIFA stated that the Normalization Committee functioned as the Election Committee. iii

8 20 MAY MAY MAY JUL 2011 PSSI CONGRESS Normalization Committee Chairman as the Congress Chairman Agum Gumelar unilaterally ended the Congress halfway through and left. FIFA Observer whose main duty was to observe the Congress made an intervention by recommending Normalization Committee to cease the Congress. The Internal Affairs Department issued a regulation prohibiting regional governments to provide funding for professional clubs. (Exhibit 4) Normalization Committee Chairman Agum Gumelar acknowledged the existence of Liga Primer Indonesia and permitted the league finish its remaining matches. Normalization Committee Chairman Agum Gumelar and Liga Primer Indonesia signed an MOU. (Exhibit 5) Extraordinary Congress was held in Solo. The congress ends the long awaited of new leadership of PSSI. Djohar Arifin Husin and Farid Rahman was elected as the President and Vice President of PSSI , along with 9 Executive Committee Members. iv

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10 11 JUL 2011 The new President and Vice President started working in PSSI office. The office was practically empty, no proper documentation and archives, PSSI bank accounts was empty and there was a huge abundance of outstanding debts. In the same week the new leadership visited AFC Office in Kuala Lumpur, and were shocked to get information from AFC General Secretary and Competition Department that Indonesia did not implement ACL Criteria for its professional clubs and the deadline to adopt the ACL Criteria was 14 October JUL 2011 PT Liga Indonesia (LI) as the organizer of Indonesia Super League (ISL) presented their activities and programs to PSSI Executive Committee. PSSI requested PT LI to hand over their activity reports and financial reports for the periods AUG 2011 Executive Committee in accordance to the implementation of ACL Professional Club Lisencing Criteria, conducted a Workshop for Professional Clubs. AFC delegates elaborated none of Indonesian football clubs fulfilled the ACL Criteria that had been introduced three years ago. Deadline for submitting ACL Criteria 14 Oct (Exhibit 6) 22 AUG 2011 PSSI never received any formal report on PT LI activities. PSSI also demanded the management of PT LI to submit the audited financial statements, but they declined the request. Therefore, based on article 79 of PSSI Statutes, the PSSI Executive Committee terminates the delegation of PT LI as a professional league administrator (Exhibit 7) 25 SEPT OCT OCT OCT 2011 In accordance to PSSI Statutes article 37 al. 1 (i), Executive Committee decided to grant 24 clubs for PSSI professional league (Exhibit 21) and sought assistance from SMT of AFC to conduct massive assessment toward ACL Criteria compliance for each of those clubs accordingly. In replace of PT LI, PSSI appointed PT Liga Prima Indonesia Sportindo (LPIS) as the league organizer. (Exhibit 8) PSSI conducted a managers meeting with LPIS clubs. PT LPIS in conjunction with PSSI launched Indonesian Premier League (IPL) in Bandung, West Java PSSI and PT LPIS agreed to hold the league for one month due to Sea Games preparations, and IPL participating clubs also supported the request. 26 0CT 2011 LPIS reported 18 out of 24 clubs submitted their forms in accordance with IPL regulation 1 NOV NOV 2011 AFC reminded clubs that competition outside of PSSI is illegal. PSSI President Djohar Arifin Husin wrote to FIFA President Joseph S. Blatter and FIFA General Secretary Jerome Valcke to counter the three Executive Committeeís argument on 14 Oct (Exhibit 9) v

11 18 NOV NOV NOV DEC DEC DEC DEC DEC DEC DEC JAN JAN MAR 2012 PSSI President Djohar Arifin Husin reported the deliberate act of those Executive Committee members to the Ethics Committee of PSSI. PSSI as the majority shareholders of PT LI sent a letter to PT LI Director to conduct a shareholders general meeting. The deadline was 5 Dec PT LPIS resumes IPL league after Sea Games and reported there were 13 participating clubs joined the current season. Some of the clubs that had submitted the registration decline to join the IPL season. PSSI sent another letter to PT LI to conduct a shareholders general meeting. The deadline 20 Dec PSSI printed an announcement through four national newspapers for PT LI to report to PSSI. Disciplinary Committee sanctioned 32 clubs participating in ISL. (Exhibit 12) PSSI Received a letter from FIFA on ISL which is being organized by PT LI. There were six points for PSSI to note. PSSI sent delegates to meet and conduct a consultative meeting with all clubs participating in the breakaway league ISL (Exhibit 13) Ethics Committee eventually sanctioned the four Executive Committee members by permanent dismissal from PSSI and any activities of Indonesian football in the domain of PSSI. (Exhibit 14) On KPSI demands, PSSI conducted a verification process of the demand by 460 members. PSSI General Secretary reported the claim was false. (Exhibit 15) PSSI reported the overall situation in Indonesian football to FIFA and AFC in finding amicable solution for the un-registered league. (Exhibit 16) FIFA and AFC replied PSSIís report. (Exhibit 17) PSSI invited all clubs participating in the breakaway league ISL to attend informal gathering (Exhibit 18) and to explain 5 offers for the potential amicable solution. (Exhibit 19) Only one club, Persib Bandung, attended the gathering. 16 MAR MAR MAR APR 2012 CAS decided that it has no jurisdiction to decide the present dispute or case no 2012/A/2688. CAS decision has also supported PSSI leadership to conduct Annual Congress. PSSI conducted an Annual Congress at Palangkaraya. (Exhibit 20) FIFA and AFC formed a Task Force led by AFC Vice-President HRH Prince Abdullah Ibni Sultan Ahmad Shah and FIFA Executive Committee Member Dato Worawi Makudithat will assist PSSI to find amicable solutions for Indonesian football league. (Exhibit 22) AFC Taskforce meets PSSI and ISL representatives. The meeting concluded with both sides agreeing to hold further discussions in the best interests of the Indonesian game. (Exhibit 23) vi

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13 25 JUL 2011 PT LI stated that 99% of its shares belonged to PSSI and 1% belonged to a private organization called When I m 64 Foundation. PT LI promised to present a financial audit conducted by Gran Thornton which was taking place at that time and to conduct a shareholders general meeting. 14 OCT OCT OCT 2011 NOV 2011 Three PSSI Executive Committee members wrote a letter to AFC and FIFA, saying that they are against PSSI decision to have 24 clubs in the professional competitions. 14 clubs and PT LI claimed they successfully conducted a share holders general meeting without inviting and the presence of PSSI, as majority shareholder of PT LI. PT LI did not fulfill their promise to submit the result of their shareholders general meeting. Four Executive Committees, La NyallaMattalitti, Roberto Row, Erwin DwiBudiawan and Tony Apriliani, pro-actively encouraged PSSI members to support un-registered or illegal league, Indonesia Super League (ISL) under PT LI. Even worse, they were also involved in setting up a new entity called, Save Indonesian Soccer Committee (KPSI) that demanded an Extra-ordinary Congress to replace the current PSSI Leadership. (Exhibit 10) 29 NOV DEC DEC DEC MAR 2012 The Ministry of Justice through its Director General for Administration officially clarified the PT LI Shareholders structure remain similar (PSSI 99% and When I m 64 Foundation 1%) which was also denying PT LI claim of its shareholders general meeting to change the shareholders structure of PT LI. (Exhibit 11) ISL kicked off with 18 participating clubs Deadline for PTLI to conduct a shareholders general meeting. There was no response. KPSI demands an Extra-ordinary Congress and replacement of current PSSI Leadership. PSSI received motion from KPSI who claiming 460 members filed motion of no confidence toward PSSI President and requested to hold an Extraordinary Congress. Persisam Samarinda, Deltras Sidoarjo FC, Pelita Jaya FC, La Nyalla M. Mattaliti and Erwin Dwi Budiawan filed to Court of Arbitration for Sport (CAS) case no 2012/A/2688 against PSSI on clubs sanctions. 18 MAR 2012 KPSI conducted an illegal Congress. 15 MAY 2012 Eight clubs participating in the ISL demanded PSSI to stop IPL. Central Jakarta District Court turned down the case. vii

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15 WAY FORWARD: 5 OFFERS 1) 2) 3) 4) 5) PSSI will refer to AFC Club Licensing Regulation (CLR) as basis of selection for professional clubs. All participating clubs will adhere to the CLR, however PSSI realizes the difficulties in regard to the current status of its club members to fulfill highest level of compliance toward CLR. PSSI will always seek and consult to AFC in order to assure all participating clubs will meet all criteria eventually. PSSI propose a new brand for the highest strata of its professional competition, in the future it will no longer use neither ISL nor IPL as the two brands will might create resistance from each participating clubs in merging the two leagues into one. PSSI has offered the best talent through merit system in selecting new CEO of the League Organizer, the candidate should possess significant degree of experience in managing professional competition and should have international network that enable PSSI to revive and rebuild a new professional league; PSSI will allow ISL and IPL to finish up their current season toward the end of each league schedules. Yet, PSSI must have full authority to control and manage ISL matches through assignment of its match officials. PSSI will honor and respect the highest commercial bid as the winner of its main sponsor for the new professional league. viii

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17 7 JUN 2012 Responsibilities Under This MOU Each party must respectively undertake the following responsibilities: 1. The Four Expelled Members of PSSI Executive Committee PSSI agrees to reinstate the four expelled PSSI Executive Committee members: La Nyalla Mattalitti, Roberto Rouw, Erwin Dwi Budiawan and Tony Apriliani. However, the procedure of reinstatement will be established by Joint PSSI Committee (cf. point 5) 2. The Status of the ISL ISL agrees to immediately come under the jurisdiction of PSSI, particularly with respect to disciplinary matters, player administration and transfers, and appointment of match officials until one and only one top-tier professional football league is established. Until such time, ISL may continue to operate autonomously. 3. The Status of KPSI The parties agree that KPSI will be dissolve and cease to exist as a so-called national football governing body. Furthermore, the parties agree that KPSI will be dissolved and cease to exist as a body immediately after the next PSSI congress. 4. The Establishment of a Joint PSSI Committee. The parties agree to establish a joint PSSI committee comprised of members from each parties to evaluate the IPL and ISL in order to create one and only one top-tier Indonesian football league as soon as possible. The Committee shall work under the supervision and in close cooperation with AFC's Task Force Indonesia and be responsible for working with FIFA and AFC on the review of the PSSI statutes and association matters. The Joint PSSI Committee shall composed as follows: I. Chairman: to be appointed by PSSI; II. Deputy Chairman: to be appointed by ISL/KPSI; III. Members: 3 members to be appointed by IPL and 3 members to be appointed by ISL/KPSI 5. PSSI Congress The parties agree to hold a PSSI Congress by the end of 2012, which shall include the adoption of new statutes. The composition of the PSSI congress shall remain as the PSSI Congress held 9 July 2011 in the presence of FIFA and AFC and the Congress agenda shall be approved by the AFC Task Force Indonesia. The verification of the composition of such congress shall be discussed and determined by the Joint PSSI Committee in order to avoid illegitimate members from participating. ix

18 20 SEP 2012 The PSSI were given detailed explanations that AFC Club Competitions qualifications for 2013 and 2014, that if clubs do not achieve the minimum 600 points for 2012 that the automatic slot for 2014 AFC club Competitions would be deprived. 25 SEP 2012 The PSSI reported to FIFA of a meeting between PSSI President Prof Dr Ir Djohar Arifin Husin with the Indonesian Sport and Youth Minister to enlighten and discuss the result of 2nd AFC and PSSI Joint Committee (JC) meeting. The Minister support PSSI and agreed that the Indonesia National Team should be under PSSI control, and will be continuously monitoring the concrete progress of the JC meeting result. 26 SEP 2012 The PSSI sent a letter to AFC providing suggestions on the leagues unification road map. 1 OCT 2012 PSSI Secretary General Halim Mahfudz sent a letter to AFC as a reply to the ACL Club Competitions qualification discussed on 20 Sep The letter contain a request for AFC to conduct discussion with PSSI and all clubs for further explanation on the achievement of Indonesian professional clubs in the light of AFC assessment. 3 OCT 2012 The PSSI sent a response to FIFA Letter dated 26 September 2012 asking FIFA and AFC - as guardians of the trilateral Memorandum of Understanding between PSSI and ISL/ KPSI that was signed on June 7th clarify the position with regard to sanctions should either party fail to uphold their undertakings and we look forward to hearing from you in this regard at the earliest opportunity. 4 OCT 2012 PSSI send a letter to FIFA requesting FIFA s advise related to infringement to the MoU. One of the points was The Indonesia Football National Team must come under the sole jurisdiction of the PSSI. However, PSSI found in the mass media that KPSI still refuse to obey the agreement and remain staunchly to run their own National team. 8 OCT 2012 PSSI sent a letter to members of AFC and FIFA informing that KPSI has established its own national team. The letter also requested that all members of AFC and FIFA to consider and ignore all forms of the competitions and for petition filed by KPSI including competition registration, friendly match request, foreign players, coaches and FIFA Match Officials, in order to ensure that proper football rules and regulations could be implemented within the World Football Family member of FIFA. 8 OCT 2012 Following a letter dated 03 February 2012 about the infringement to the MoU committed by the KPSI, the PSSI reported that the infringements are still taking place. Still has not stop. KPSI national team held a friendly match against two of Indonesian Super League Team Arema-Pelita and Gresik United/Persegres on 06 October The team was announced to public as the Indonesia National team. They also used PSSI official logo for the a-board, media publicity. Further, KPSI was also found to be using PSSI cover head letter for their local correspondence and will conduct their own Congress on 10 Nov x

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