Indonesia Stock Exchange (“IDX”) has issued New Regulation* relating to stock splits and reverse stock splits. The New Regulation came into effect on 1 April 2024.

The New Regulation clarify the provisions that companies must comply with to obtain principal approval for stock splits or reverse stock splits from the stock exchange on which they are listed (“Principal Approval”). The New Regulation gives the IDX authority to approve, reject, postpone or cancel applications for Principal Approval. When making a decision, the IDX will take into account the substance of the application, and investor protection. The New Regulation set out conditions under which Principal Approval could be declared null and void, or be revoked. These conditions primarily relate to investor protection.

The New Regulation allows a listed company to reapply for Principal Approval 6 months after a null and void declaration or a revocation.

*Decision Letter of the Board of Directors of PT Indonesia Stock Exchange Number KEP-00044/BEI/04-2024 of 2024 regarding Regulation I-I concerning Stock Splits and Reverse Stock Splits by Listed Company Issuing Equity Securities. This is in accordance with the Indonesia Financial Services Authority Regulation Number 15/POJK.04/2022 on Share Split and Stock Reverse Split by Public Company.