New T+2 Settlement Period for Stock-Exchange Transactions

In a bid to implement the new T+2 transaction settlement period, the Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) has issued Regulation on Stock-Exchange Transaction Settlement Periods (“ Regulation 21/2018 ”). Although Regulation 21/2018 came into force on 21 November 2018, the Indonesian Stock Exchange (Bursa Efek Indonesia– “ BEI ”) officially began to implement the T+2 transaction settlement on 26 November 2018. [1] In essence, Regulation 21/2018 makes a number of straightforward changes to the settlement periods for stock-exchange transactions (“ Settlement Period ”) through the regular market from the original three days (T+3) to just two days (T+2) from the carrying out of any given transaction. [2] Through the issuance of Regulation 21/2018, provisions relating to the Settlement Period which were addressed in a rather unharmonious manner under the following different regulations (collectively referred to as “ Previous Regulations ”) have now been partially revoked: [3]