In December 2024, the Financial Services Authority (Otoritas Jasa Keuangan or “OJK“) enacted a New Regulation* aimed at enhancing and strengthening financial infrastructure in Indonesia’s capital market sector.

The New Regulation allows securities institutions, including stock exchanges, clearing and guarantee institutions, and securities depository and settlement institutions, to provide additional services in capital market sector beyond their primary functions under the Capital Market Law**.

Stock exchanges may now offer services such as providing services in operating alternative carbon trade through the carbon exchange, electronic public offering system, capital market data and/or index compilation, and other services mandated by OJK.
Meanwhile, clearing and guarantee institutions are permitted to provide triparty repurchase agreement and lending infrastructure, collateral management services, risk management facilities, electronic public offering systems, information and data reporting, as well as other services mandated by OJK.

Additionally, securities depository and settlement institutions are now authorized to offer services such as electronic recording of non-collectively deposited securities, fund storage, data and information administration, electronic general meetings of securities holders, and international securities coding, among other services mandated by OJK.

These services may only be conducted if permitted or mandated by OJK. Furthermore, services provided by these securities institutions must comply with legal provisions and be subject to adequate risk management measures. Violations of these regulations may result in administrative sanctions.

*OJK Regulation No. 32 of 2024 concerning the Development and Strengthening of Transactions and Securities Institutions (“New Regulation”)

**Law No. 8 of 1995 concerning Capital Market as amended by Law No. 4 of 2023 concerning Development and Strengthening of the Financial Sector (“Capital Market Law”)