Iqbal Darmawan


On 14 March 2017, Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan or OJK) issued new rules for public companies. Below are highlights of what the new rules say: Reporting of Share Ownership in Public Companies (OJK Rule No.11/POJK.04/2017) There are three significant changes introduced by the new rule: The new rule now officially recognizes the “indirect” share ownership concept. This is different with the previous rule, which, on the face of it, may be interpreted…

Recent Developments

To increase investor protection and keep up with the developments in market practice, on 18 April 2016, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan – OJK) enacted OJK Rule No. 20/POJK.04/2016 on the Licensing of Securities Companies that Undertake Business Activities as Underwriters and Broker-Dealers (OJK Rule No. 20/2016). This rule was published on OJK’s website in late April 2016.

This rule replaces Rule of the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) No. V.A.1 on the Licensing of Securities Companies, as attached to Decision of the Chairman of Bapepam-LK No. Kep-334/BL/2007 (Rule No. V.A.1). The provisions of OJK Rule No. 20/2016 are far more extensive and detailed than those of the previous rule and they set out more requirements and prohibitions than the previous rule.