Provisions on Stock Splits and Stock Mergers to Come into Force on 22 February 2023

In recent years, stock splits and stock mergers have been necessary activities for public companies that operate within the capital market. However, to date, there has been an unfortunate lack of any legal framework that specifically addresses this area. In response to this regulatory deficiency, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has finally issued Regulation No. 15/POJK.04/2022 on Stock Splits and Stock Mergers (“Stock Splits and Mergers”) by Public Companies (“Regulation 15/2022”), which will hopefully provide greater legal certainty in terms of the rights of shareholders, protection of investors and support for the realization of well-maintained stock trading.[1]