Indonesia’s Financial Services Authority or Otoritas Jasa Keuangan (“OJK”) has enacted several changes on share buyback by public companies. These changes, adopted under OJK Regulation No. 29 of 2023 on Share Buyback by Public Companies (“New Regulation”), subject public companies to more stringent provisions compared to the previous framework under OJK Regulation No. 30/POJK.04/2017, most notably on the execution of buybacks, as well as the contents of the public disclosure.
Furthermore, the New Regulation extends the methods to transfer treasury shares[1] and allows for some flexibility by allowing the payment or settlement of certain transactions such as asset acquisition and debt or bonds repayment as one of the purposes of such transfer.
As we will see below, the New Regulation has far-reaching implications. It not only establishes a more rigorous framework for share buybacks but also instil a heightened sense of accountability and transparency within public companies.
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