OJK Regulates Buybacks of Shares Issued by Public Companies

Based on the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) mandate to replace the Capital Market and Financial Institutions Supervisory Board (Badan Pengawas Pasar Modal dan Lembaga Keuangan – “BAPEPAM-LK”),[1] the OJK has issued Regulation No. 30/POJK.04/2017 on Buybacks of Shares Issued by Public Companies (“Regulation 30/2017”), which replaces BAPEPAM – LK Regulation No. KEP – 105/BL/2010 on Buybacks of Shares Issued by Issuers or Public Companies (“Regulation XI.B.2”).
 
In essence, this new regulation makes a number of minor alterations to the various provisions which were originally set out under Regulation XI.B.2. Moreover, Regulation 30/2017 also stipulates a number of new provisions which relate to administrative sanctions. Our discussion of Regulation 26/2017 will focus upon the following matters: