The Indonesia Financial Services Authority ("OJK") introduced OJK Regulation No. 4 of 2024 ("POJK 4/2024") in response to evolving regulatory needs, resulting in significant changes in reporting requirements for shareholders of public companies. Effective from 28 August 2024, this regulation shifts the focus from mere share count to calculating ownership based on valid voting rights, thus replacing OJK Regulation No. 11/POJK.04/2017. It mandates timely reporting within five business days of any changes in voting rights ownership exceeding 5%, whether through acquisition or inheritance. Additionally, POJK 4/2024 requires the disclosure of encumbrances on shares, a new measure aimed at protecting minority shareholders' interests and ensuring transparency in corporate governance.
Under POJK 4/2024, shareholders must submit detailed reports that include pre- and post-transaction voting rights percentages, transaction specifics, and relevant party details. Exemptions are provided for changes resulting from corporate actions such as share buybacks or capital increases, promoting flexibility within regulatory compliance. Anticipated future enhancements, like an electronic reporting system, aim to further streamline reporting processes. Overall, POJK 4/2024 represents a significant stride toward strengthening Indonesia's financial sector integrity. By enhancing market transparency and safeguarding investor confidence through stringent yet adaptable regulatory measures, this regulation ensures that the country's capital market remains robust and well-regulated.
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