OJK Preparing New Regulation on Buybacks of Shares Issued by Public Companies

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is currently preparing a draft regulation on Buybacks of Shares Issued by Public Companies (“Draft Regulation”), which on the date of its promulgation, will replace Regulation of the OJK No. 30/POJK.04/2017  (“Regulation 30/2017”),[1] which bears the same title.[2] The Draft Regulation is being introduced in order to improve the current framework of Regulation 30/2017, specifically in relation to the implementation of share buyback prices, share buyback transfer prices, information disclosures and redemption periods, as well as setting out further details regarding how to transfer back shares that result from buybacks (aside from buybacks that are completed through the transfer mechanism) through sales through the stock exchange and arrangements regarding other transfer methods in order to make more flexible options available during the completion of transfers.[3]