Indonesia: Reporting requirements on share ownership of directors, commissioners and ultimate beneficial owners (of at least 5% of the paid-up capital) in public companies
On 14 March 2017, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan or "OJK") issued regulation no. 11/POJK.04/2017 on Reporting of Ownership, or Changes in the Ownership, of Shares in Issuers or Public Companies. This new regulation took effect immediately and revoked OJK regulation no. 60/POJK.04/2015 on Information Disclosure of Certain Shareholders.
With this new regulation the OJK aims to enhance the quality of information available to the public in respect of the shareholding in Indonesian public companies in accordance with international standards, with a view to enhancing transparency and protecting minority investors.
One notable amendment is that the new OJK regulation now imposes an obligation on an indirect owner (i.e. ultimate beneficial owner) of 5% or more of the paid-up capital in an Indonesian public company to report its ownership to the OJK. Under the previous OJK regulation, such reporting obligation only captured a direct shareholder holding 5% or more – there was no obligation on an indirect shareholder or ultimate beneficial owner to report its indirect ownership in the public company to the OJK.Read more