The Jakarta Stock Exchange (JSX) has issued amendments to the listing rules which aim to simplify the listing requirements and enhance investor protection by improving the quality of the shares traded on the JSX. Among other things, listed companies must now have at least one non-affiliated director.
Bapepam, the Indonesian Capital Market Supervisory Agency, recently amended two regulations on the registration of initial public offers and rights issues, with the aim of simplifying and expediting these procedures. It has also modified the procedure for reporting the use of proceeds of a public offer.
Bapepam - Indonesia's Capital Markets Supervisory Board - recently confirmed that stock index futures are categorized as 'securities' as defined under the Capital Markets Law. It has also issued a new regulation stating that the trading of state debt securities off the stock exchange must be carried out by a licensed limited liability company.
Bapepam, Indonesia's capital markets supervisory agency, has confirmed that the offer procedure for debt securities denominated in foreign currency is largely identical to the general public offer procedure, although additional disclosure in the prospectus will be required. Information that must be disclosed includes whether a hedging facility or repayment fund is available.
PT Bursa Efek Jakarta, the operator of the Jakarta Stock Exchange, has issued new regulations amending the trading lot for shares and warrants which are traded on the exchange. The settlement period for transactions conducted on the regular and negotiated markets has also been shortened.
The government has increased the withholding tax rate for interest and discounts on bonds listed on the Indonesian Stock Exchange to 20%. At the same time it abolished the 0.03% capital gains tax for bond transactions that take place on the exchange.
Following a trading mix-up in September 2001, the Jakarta Stock Exchange has abolished the immediate market, a market segment on the exchange which allowed for one-day settlements.
The Jakarta Stock Exchange is reported to have made preparations to implement its remote trading system by June 2002. Simulations are underway to test whether the system will work properly.
The Jakarta Stock Exchange's plan to operate a scriptless trading system has suffered a setback: since the decision to convert to scriptless is voluntary and the costs involved are high, many companies have opted not to do so. As a result an obligatory conversion requirement may soon be introduced.
The Jakarta Stock Exchange has amended its listing rules relating to corporate governance. The amendment removes a provision relating to the procedure for appointing an independent commissioner, as this provision has proved difficult to apply in practice.
On October 27 2000 the Indonesian Capital Market Agency issued five amending regulations, intended to simplify the procedure for registering securities and shorten the time period for a public offer.
The Jakarta Stock Exchange has issued new listing rules designed to improve corporate governance. All listed companies must appoint independent commissioners and an audit committee, in addition to a corporate secretary. This update highlights the duties of each.
The newly issued Regulation 29 sets new guidelines for purchasing shares of banks. Of particular interest are its provisions on disclosure requirements and foreign ownership, which now allow up to 99% of a bank’s shares to be foreign owned.
Both public and limited liability companies are allowed to buy back their own shares under certain conditions outlines in this update.
Indonesia's capital markets regulatory authority, Bapepam, has recently issued a regulation that permits certain insider trading. This facilitates the sale of listed shares to strategic investors and the enforcement of pledges.
The Jakarta Stock Exchange has revealed that it plans to increase the size of trading lots for listed bank shares (and warrants) from 500 shares to 5,000 shares – in order to cope with a dramatic increase in the volume of shares traded on the exchange.
The proposed merger of two of Indonesia’s large stock exchanges was halted because the approval of 75% of shareholders was not gained.