JAKARTADAILY.ID – The Indonesian Financial Services Authority (OJK) has issued three new regulations to strengthen regulation and supervision of the Capital Market industry.
The three new rules are OJK Regulation (POJK) Number 14/POJK.04/2022 concerning Submission of Periodic Financial Reports of Issuers or Public Companies, POJK Number 15/POJK.04/2022 concerning Stock Splits and Share Mergers by Public Companies, and POJK Number 17/POJK.04/2022 concerning the Code of Conduct for Investment Managers.
"The three new regulations are aimed at realizing the creation of an orderly, fair and efficient Capital Market activity as well as protecting the interests of investors and the public," said OJK Public Relations Director, Darmansyah, quoted from the ojk.go.id page, Thursday, September 22, 2022.
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POJK Number 14/POJK.04/2022 is a provision for the improvement of Indonesian Capital Market and Financial Institution Supervisory Agency (Bapepam) Regulation Number X.K.2 concerning Submission of Periodic Financial Reports of Issuers or Public Companies, attachment to Decree of the Chairman of the Capital Market and Financial Institution Supervisory Agency Number: Kep-346/BL/2011 dated July 5, 2011, concerning Submission of Periodic Financial Reports of Issuers or Public Companies that have been adjusted to the development of OJK policies and pay attention to best practices in the Capital Market (best practices), market needs and international standards.
Darmansyah said that the provision for the submission of the Issuer or Public Company Periodic Report is important because it plays a role in making shareholder decisions, especially public shareholders.
"Availability of financial reports faster to public shareholders is expected to help public shareholders to be able to make the right investment decisions," he said.
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This POJK stipulates that Issuers or Public Companies whose registration statements have been declared effective must submit Periodic Financial Reports to OJK and announce Periodic Financial Reports to the public. Submission of Periodic Financial Reports must be done through the OJK electronic reporting system.
Furthermore is the POJK Number 15/POJK.04/2022. This provision regulates the mechanism for stock splits and stock mergers by public companies.
In the event that the shares of a public company are listed on the Stock Exchange, the public company is required to obtain approval in principle on the plan for the share split and the plan for the merger of the shares of the public company from the Stock Exchange where the shares of the public company are listed.
A stock split is a legal action carried out by a public company to split its shares from one share into two or more shares or split its shares with a certain ratio which results in an increase in the number of shares of a public company.
A merger of shares is a legal action carried out by a public company to combine its shares from two or more shares into one share or combine its shares with a certain ratio which results in a reduction in the number of shares of a public company.
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