Threshold value for securities offerings classified as non-public offerings
Indonesian Financial Services Authority (“OJK”) Regulation No. 29/POJK.04/2021 of 2021
regarding Offerings Classified as Non-Public Offerings
Enacted on December 30, 2021 and came into force on December 31, 2021
This Regulation stipulates that a securities offering shall be classified as a non-public
offering if the overall offering has a maximum value of five billion rupiah and is
conducted in one or several offerings within a maximum period of 12 months.
However, the OJK can stipulate a different threshold value for securities offerings (i)
conducted by supranational agencies; (ii) of equity by foreign companies listed on the
stock exchange or public companies that are addressed to employees, members of
the board of directors and/or board of commissioners of companies and/or controlled
companies; (iii) for market deepening; and/or (iv) in support of government policies.
This Regulation revokes OJK Regulation No. 26/POJK.04/2020 of 2020 regarding
Offerings Classified as Non-Public Offerings.
Requirements and procedures for e-GMS providers
OJK Circular Letter No. 1/SEOJK.04/2022 regarding the Procedure to Apply to Be a System
Provider for Electronic General Meeting of Shareholders (“e-GMS”)
Enacted and came into force on January 24, 2022
This Circular Letter sets the requirements and procedures to apply for approval as an
e-GMS system provider for all parties other than the Depository and Settlement
Institution. This is an implementing regulation for the reference to “other parties
approved by the Financial Services Authority (as an e-GMS Provider)” in Article 34(1)
of OJK Regulation No. 15/POJK.04/2020 regarding the Planning and Organization of
a General Meeting of Shareholders of Public Companies and Article 4(2)(b) of OJK
Regulation No. 16/POJK.04/2020 regarding the Implementation of Electronic General
Meeting of Shareholders of Public Companies.
Consumer protection in the non-bank finance industry
OJK Press Release No. SP 05/DHMS/OJK/I/2022 regarding Improving Consumer Protection
in IKNB, OJK Issues Provisions for Completing PAYDI and Fintech Lending
Issued January 28, 2022
The OJK reported that it will soon issue two regulations in the non-bank finance
industry (“IKNB”) in connection with insurance products associated with investments
(Produk Asuransi Yang Dikaitkan dengan Investasi or “PAYDI”), or unit link products,
and the amendment of the regulation regarding fintech peer-to-peer (“P2P”) lending
services. It said these regulations were being issued to improve consumer protection
and the operation of the insurance and P2P lending sectors.
The PAYDI-related regulation will cover product specifications, corporate
requirements to sell PAYDI, marketing practices, product transparency and
investment management. The amendment to the fintech P2P lending services
regulation will cover the ownership of joint funding service platforms, form of legal
entities, establishment capital, equity value, maximum funding limit, controlling
shareholders, and consumer protection prohibitions.
Termination of stock option contract trading through the JOTS
PT Bursa Efek Indonesia Board of Directors Decree No. KEP-00005/BEI/01-2022 regarding
the Revocation of Exchange Arrangements Related to Stock Option Contract Trading (Kontrak
Opsi Saham or “KOS”) and Termination of Jakarta Option Trading System (“JOTS”) Services
Enacted and came into force on January 31, 2022
This Decree terminates KOS conducted through JOTS and JOTS services. With the
issuance of this Decree, several previous regulations are revoked and declared
invalid. These are Regulation No. II-D regarding Stock Option Trading (Appendix of
PT Bursa Efek Indonesia Board of Directors Decree No. Kep-310/BEJ/09-2004); PT
Bursa Efek Indonesia Board of Directors Decree No. Kep-00031/BEI/03-2020
regarding Changes in Exchange Transaction Trading Time; and PT Bursa Efek
Jakarta Circular Letter No. SE-010/BEJ/10-2004 regarding Stock Option Contract
Serial Coding at JOTS.
For more information, please contact:
Stephen Igor Warokka, Partner, SSEK
