Liquidity Provider will be Required to Secure Approval from Market Organizer

Indonesia’s current securities trading practices encompass several variables that suggest that a small number of shares that are consistently listed on Indonesia’s stock market index are highly liquid assets. In response to this situation, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is currently preparing a Draft Regulation on Liquidity Providers (“Draft Regulation”), which aims to increase the liquidity of securities that are traded through the stock exchange.[1] The Draft Regulation is currently undergoing a process of deliberation at the OJK and may be subject to further changes. In this regard, inputs from the general public may be submitted until a deadline of 27 May 2024 to the Directorate of Regulation and Capital Market Accounting Standards or Syifa Yona Marta ([email protected]).[2]