In December 2015 the Financial Services Authority (OJK) issued the Regulation on Issuers and Public Companies which Are Exempt from Reporting and Announcement Obligations (29/POJK04/2015).
The regulation relates to reporting and announcement obligations imposed on issuers and public companies with securities and shares registered at the Indonesian Stock Exchange. Such entities must submit to the OJK their regular financial reports, including semi-annual financial reports, annual financial reports and annual reports. They must also publish these reports on their website or in a newspaper.
According to the regulation, an issuer or public company will be exempt from these obligations if:
- all of its business licences are no longer valid;
- it has been declared bankrupt by way of a valid court decision; or
- it meets at least three of the following conditions:
- It has not been fully operational for the past three years.
- Its business activities have been restricted or disrupted by the authorities for the past three years.
- Its business activities have been suspended.
- It has not maintained correspondence with the OJK for at least three years.
- None of its directors, commissioners or main shareholders could be contacted in the past three years.
- It has been deregistered from the Indonesian Stock Exchange.
The exemption must be confirmed by way of an OJK decision letter.
Issuers and public companies that have been exempted from the reporting and announcement obligations, but which no longer meet the above conditions, will be formally declared by the OJK as no longer qualifying for the exemption, triggering the resumption of their reporting and announcement obligations. The regulation sets out penalties for issuers and public companies which no longer qualify for the exemption and which fail to comply with their resumed reporting and announcement obligations.
For further information on this topic please contact Muhammad Muslim or Elsie Hakim at Ali Budiardjo, Nugroho, Reksodiputro by telephone (+62 21 250 5125) or email (firstname.lastname@example.org or email@example.com). The Ali Budiardjo, Nugroho, Reksodiputro website can be accessed at www.abnrlaw.com.
This article was first published by the International Law Office, a premium online legal update service for major companies and law firms worldwide. Register for a free subscription.