OJK Updates Provisions on Affiliated Transactions and Conflict-of-Interest Transactions

In an attempt to further strengthen protections for independent shareholders and to improve the quality of any information disclosures which are made by publicly-traded companies (“ Companies ”) in relation to affiliated transactions and conflict-of-interest transactions, the Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) recently issued Regulation No. 42/POJK.04/2020 of 2020 on Affiliated Transactions and Conflict-of-Interest Transactions (“ Regulation 42/2020 ”), which updates provisions relating to the implementation of these transaction types. Currently, these matters are still addressed under Rule IX.E.1, which is set out under the Appendix to Decree of the Head of Capital Market and Financial Institutions Supervisory Agency No. Kep-412/BL/2009 of 2009 on Affiliated Transactions and Conflicts of Interest in Certain Transactions (“ Rule IX.E.1 ”) yet to be repealed by 21 October 2020. [1]