Tuesday, May 30, 2017 01.20PM / ILO / Contributed by Ali Budiardjo, Nugroho, Reksodiputro
The Financial Services Authority (OJK), Indonesia recently amended public companies' obligation to report on their shareholding by way of OJK Regulation 11/POJK.04/2017 regarding Reporting on Public Company Ownership or on Every Change in Share Ownership.
Enacted on March 14 2017, the regulation aims to bring public companies' reporting obligations in line with international standards. Its scope is much wider and more detailed than the previous OJK Regulation 60/POJK.04/2015 regarding the Information Transparency of Certain Shareholders.
1. The regulation provides definitions of the entities which are subject to the shareholding reporting obligations.
2. The reporting obligations apply to both direct and indirect shareholdings, which was not the case with the preceding regulation.
3. Under the regulation, shareholders of public companies which directly or indirectly own 5% or more of the total number of issued shares of the respective companies must disclose their share ownership. This requirement is stricter than that of the preceding regulation.
4. The regulation stipulates that 5% shareholders must report any change (increase or decrease) in their ownership resulting from one or more transactions only if the change is equal to or exceeds 0.5% of the company's total issued share capital. This requirement is more relaxed than that of the preceding regulation, which required the disclosure of any change, regardless of its size.
5. The regulation has expanded the list of information to be reported to include:
6. The regulation requires public companies to establish policies regarding their directors' and commissioners' obligations to report on their shareholding in the public company and any changes to this shareholding.
7. Reports must now be submitted to the OJK within:
8. Significantly, the regulation provides that all reported information is public information and that copies of the report may be obtained from the OJK. Further, the OJK can announce administrative penalties imposed to the public.
For further information on this topic please contact Theodoor Bakker or Kevin Omar Sidharta at Ali Budiardjo, Nugroho, Reksodiputro by email (firstname.lastname@example.org or email@example.com). The Ali Budiardjo, Nugroho, Reksodiputro website can be accessed at www.abnrlaw.com.
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