OJK Regulates Buybacks of Shares Issued by Public Companies

Based on the Financial Services Authority (Otoritas Jasa Keuangan– “OJK”) mandate to replace the Capital Market and Financial Institutions Supervisory Board (Badan Pengawas Pasar Modal dan Lembaga Keuangan– “BAPEPAM-LK”), [1] the OJK has issued Regulation No. 30/POJK.04/2017 on Buybacks of Shares Issued by Public Companies (“Regulation 30/2017”), which replaces BAPEPAM – LK Regulation No. KEP – 105/BL/2010 on Buybacks of Shares Issued by Issuers or Public Companies (“Regulation XI.B.2”).In essence, this new regulation makes a number of minor alterations to the various provisions which were originally set out under Regulation XI.B.2. Moreover, Regulation 30/2017 also stipulates a number of new provisions which relate to administrative sanctions. Our discussion of Regulation 26/2017 will focus upon the following matters: