Overview

More than a decade ago, the Indonesian Government passed Law No. 8 of 1995 on the Capital Market (“Capital-Market Law”) in the hope of providing a firm legal basis for the organization of Indonesia's capital market, which was perceived to play a vital role in accelerating the overall economic development of the country.[1] In order to further elaborate upon the various provisions set out under the Capital-Market Law, the government subsequently issued Regulation of the Government No. 45 of 1995 on the Organization of Capital Markets,[2] which was then amended through the issuance of Regulation of the Government No. 12 of 2004 (collectively referred to as “Regulation 45/1995”). Under these regulatory frameworks, the relevant regulatory and supervisory authorities were the domain of the Capital-Market Supervisory Agency (Badan Pengawas Pasar Modal – “Bapepam”).