OJK Overhauls Framework on the Use of Proceeds from Public Offerings: Issuers Now Subject to Segregated Account Requirements

In order to strengthen investor protections and improve the governance of issuers regarding the management of the proceeds from public offerings, the Financial Services Authority (Otoritas Jasa Keuangan  -“OJK”) has issued Regulation No. 40 of 2025 on the Utilization of Proceeds from Public Offerings (“Proceeds”) (“Regulation 40/2025”), which is set to come into force on 22 June 2026. On this date, the new framework will simultaneously repeal and replace the current framework of Regulation of the OJK No. 30/POJK.04/2015 (“Regulation 30/2015”) on Realization Reports on the Use of Proceeds from Public Offerings.