Legal Updates for June 2024

Understanding the Latest Changes in IDX’s Delisting and Relisting Rule

Starting from May 2024, public investors in Indonesia enjoy greater transparency of information on potentially problematic listed companies and/or issuer of bonds or sukuk. This benefit was introduced under Indonesia Stock Exchange (Bursa Efek Indonesia or “IDX”) Regulation No. I-N on delisting and relisting of shares and debt-linked securities or sukuk (“Regulation”). Besides regulating delisting – which can be done voluntarily or under the order of IDX or the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) – the Regulation also mandates IDX to periodically announce the potential delisting of companies whose shares have been suspended for six consecutive months. In addition, the Regulation revokes the previous rules on delisting and relisting.

The Regulation was issued after OJK enacted OJK Regulation No. 3/POJK.04/2021 on the Implementation of Capital Market Activities (“OJK Regulation”). The OJK Regulation governs, among others, the change of status of a public company to a private company (commonly called ‘go private’).

Redefining Maternity Leave under the New Mothers and Children Draft Law

In June 2024, the House of Representatives ratified the draft law governing the welfare of mothers and children. As evident from the subject matter, the draft law regulates various aspects related to the welfare of mothers and children, as well as the rights that need to be guaranteed by the state to realise this. When it becomes effective, the draft law will regulate maternity leave, supporting facilities at workplace for mothers who have recently given birth, and adjustment to working hours for breastfeeding mothers. These changes are in line with the aim of the draft law, which is to ensure the equal rights of mothers and children under the 1945 Constitution.

From the employers’ perspective, the draft law will impact the rights of workers and employers’ obligation to provide facilities for working mothers. It may also lead to amendments in company regulations to accommodate changes in leave entitlement and working hours, among other things.