OVERVIEW

Since taking over authority to supervise capital markets from the Capital Market Supervisory Agency (“Bapepam-LK”), the Financial Services Authority (“OJK”) has been intensively promoting capital markets to the general public and corporations alike. The rationale behind this drive for the capital market is, according to the OJK, the view that a consistently growing capital markets industry and an increasing number of publicly-traded companies are the hallmarks of a developed country.[1]

As part of  promoting financial literacy on capital markets to the general public, the OJK is also encouraging private companies to become publicly-traded companies,[2] and make an initial public offering on the Indonesia Stock Exchange (“IDX”). This process is regulated under Law No. 8 of 1995 on Capital Markets (“Capital Market Law”).