Law No. 8 of 1995 on the Capital Market allows for the issuance of debt securities without public offerings (private placements) under certain circumstances, however, until now, no specific regulatory framework has addressed this matter. Therefore, in a bid to ensure greater legal certainty and protection for investors, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) recently issued Regulation No. 30/POJK.04/2019 on the Issuance of Debt Securities and/or Sharia Bonds Without Public Offerings (“Regulation 30/2019”), which sets out a new legal framework that addresses these matters.[1]
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