Selasa, Maret 10, 2020

OJK Relaxes Framework for Corporate Share Buybacks

The outbreak of coronavirus and the decrease in the global oil price is having a significant effect upon Indonesia’s Composite Index (Index Harga Saham Gabungan), which has already dropped by approximately 18.46% during early 2020.
The Financial Services Authority (OJK) has therefore decided to implement a number of measures aimed at tackling these unfavorable conditions and has issued Circular No. 3/SEOJK.04/2020 on Other Significantly Fluctuating Market Conditions for the Performance of Buybacks of Shares Issued by Issuers or Public Companies (“Circular 3/2020”).
Pursuant to Circular 3/2020, share buybacks may now be completed without the prior consent of General Meetings of Shareholders (RUPS). Furthermore, the number of shares which can be subject to buybacks has now been increased to over 10% of issued, paid-up capital up to a maximum of 20%, provided that current floating shares amount to a minimum of 7.5% of the relevant issued, paid-up capital.

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The outbreak of coronavirus and the decrease in the global oil price is having a significant effect upon Indonesia’s Composite Index (Index Harga Saham Gabungan), which has already dropped by approximately 18.46% during early 2020.
The Financial Services Authority (OJK) has therefore decided to implement a number of measures aimed at tackling these unfavorable conditions and has issued Circular No. 3/SEOJK.04/2020 on Other Significantly Fluctuating Market Conditions for the Performance of Buybacks of Shares Issued by Issuers or Public Companies (“Circular 3/2020”).
Pursuant to Circular 3/2020, share buybacks may now be completed without the prior consent of General Meetings of Shareholders (RUPS). Furthermore, the number of shares which can be subject to buybacks has now been increased to over 10% of issued, paid-up capital up to a maximum of 20%, provided that current floating shares amount to a minimum of 7.5% of the relevant issued, paid-up capital.

......

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