OJK Introduces Rules on Going Private and Obligation to Identify Controlling Shareholders

Indonesia’s Financial Services Authority, or OJK, recently enacted Regulation No. 3/POJK.04/2021 on Implementation of Capital Market Activities. In line with its title, this regulation governs various capital market activities and the actors in it. The two main elements of this regulation are introducing the procedures to go private and identifying a public company’s controlling shareholders and its obligations. 

In the regulation, OJK identifies three situations where a public company can go private: voluntarily, based on an order from OJK, or based on an order from IDX. Meanwhile, on controlling shareholders, the regulation affirms OJK’s policy of requiring public companies to disclose their controlling shareholders, whether direct or indirect.