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.
In a recent case, the Constitutional Court took a stand and rejected a judicial review petition filed by several TV giants that internet-based broadcasting (also known as over-the-top ("OTT") broadcasting) should fall within the scope of the Broadcasting Law (Law No. 32 of 2002). The Court's rejection means that the Government may enact a new regulation specifically to regulate OTT broadcasting.
The Indonesia Stock Exchange ("IDX") is currently preparing a new listing regulation to update the current listing regulation. The current listing regulation is set out in the Decree of the Board of Directors of PT Bursa Efek Indonesia No. Kep-00183/BEI/12-2018 on Securities Listing Regulation No. I-A on the General Provisions for the Listing of Equity Securities at IDX.
The new regulation will, among other things, add a definition of public float, which will address which shareholders of a public company can be calculated as part of the public shares of such company. IDX hopes that with this new regulation, public companies will be encouraged to obtain more public shareholders in initial public offerings.