Indonesia has taken a significant step toward modernizing its capital markets with the issuance of New Regulation*. Effective from 28 April 2025, the New Regulation requires all public companies to issue equity and debt securities, as well as sukuk, exclusively in scripless (electronic) form. It also mandates the conversion of all outstanding physical share certificates into electronic records — known as Dematerialisasi Efek Bersifat Ekuitas (Dematerialisasi EBE) — within five years.
The dematerialization process begins with shareholders submitting proof of ownership or collective share certificates to the company’s appointed Securities Administration Bureau (Biro Administrasi Efek – BAE) or to the public company itself if it manages its own share registry. Validation of documents must be completed within two business days. To ensure broad awareness, BAEs and public companies must announce the program at least twice a year, detailing the timeframe, procedures, and required documents through the stock exchange website (for listed issuers), the company’s official website, and by registered mail to shareholders. All announcements must be made in both Bahasa Indonesia and English.
After the initial five-year conversion window, physical share certificates will no longer be tradable on the stock exchange, transferable over the counter, or otherwise transacted until they have been dematerialized. Shareholders will then have an additional five years to submit claims for unconverted shares. Once this period expires, any remaining physical shares will be classified as unclaimed assets and managed by a party appointed by Indonesian Financial Services Authority (Otoritas Jasa Keuangan or OJK)
Throughout the process, all parties involved — including BAEs, public companies, custodians, and investment managers — are required to uphold consumer protection principles in line with financial services regulations. While the timeline provides a ten-year transition in total, companies are strongly advised to start the conversion process early to prevent trading restrictions and ensure smooth compliance with New Regulation.
*OJK Regulation No. 9 of 2025 on the Dematerialization of Equity Securities and the Management of Unclaimed Assets in the Capital Market.