As almost every related law enacted in Indonesia tries to reflect, the state’s main objective as regards the economic sector is the public’s welfare and equitable economic growth throughout the country. One of the key influences on the economic sector is funds sourced from the capital market.[1]
 
The country’s capital market, an arena in which buyers and sellers of commercial documents do business, is regulated under Law No. 8 of 1995 on the Capital Market (“Capital Market Law”). This law covers a wide variety of activities, such as public offerings and securities trading. As a market that trades in non-tangible assets, the capital market is inhabited by many institutions and supporting professionals. These professional ensure that the assets that are being traded through the market, regardless of whether they are penny stocks or blue-chip stocks, are backed by actual companies, which are both physically manifest and also currently in operation.[2]
 
One particular type of capital-market entity, and one which often misleads investors, are companies which have adopted the “Tbk” suffix after their names. These are known as “Perusahaan Publik tidak tercatat” (non-listed public companies). Such companies share features similar to any other “Emiten“(issuer), however they also have one distinctive trait. Specifically, their shares are not traded through the capital market and these non-listed public companies use the “Tbk” designation to show that they are different from common private companies (perusahaan tertutup).    
 
Given that such entities do exist in the capital market, albeit in small numbers, this week’s Indonesian Law Digest (ILD) will attempt to dissect and analyze those strange creatures known as non-listed public companies. Discussion on this topic will be limited to the following four subtopics: