The Financial Services Authority will introduce new regulations due to come into force on 28 August 2024, aimed at increasing transparency and confidence in Indonesia’s capital markets. Specifically, the regulations will enhance disclosure obligations for public companies, including in relation to reporting share ownership and pledging activities.

A key change introduced by these regulations is the requirement that shareholders of a public company must submit a pledge activity report to the FSA if they pledge at least 5% of company’s shares with voting rights. This new requirement ensures that significant financial maneuvers involving company shares are tracked and disclosed. The regulations also lay out more guidelines on the timing and format for pledging activity reports, ensuring consistency and clarity in the information provided.

In addition to pledge activity reports, the regulations update several aspects of ownership reporting obligations. Key updates include adjustments to the parties required to report ownership, the thresholds that trigger reporting obligations, and the reporting period.

It is advisable to consult your contact at BLP if you have any transactions that might trigger these obligations, as non-compliance could lead to administrative sanctions.

Ultimately, the implementation of the new regulations will foster a more transparent and well-supervised market environment, benefiting all stakeholders involved.

*The Financial Services Authority Regulation No. 4 Year 2024 on the Report on Owner- ship or Any Change in Share Ownership of a Public Company and Report on the Activities of Pledging Shares of a Public Company.