Draft PADK Regulates Verification of Sukuk and Digital Bond Offerings

The Financial Services Authority (“OJK”) plans to establish technical guidelines for the implementation of Public Offerings of Debt Securities and/or Sukuk (Efek Bersifat Utang dan/atau Sukuk - “EBUS”) through electronic means. The drafting of this Regulation of the Members of Board of Commissioners of OJK (“PADK”) is mandated under OJK Regulation No. 41/POJK.04/2020 on the Implementation of Electronic Public Offerings of Equity Securities, Debt Securities, and/or Sharia Bonds (“POJK 41/2020”), which serves as the foundation for the digitalization of public offering processes in Indonesia’s capital market.

“This draft strengthens the verification process for indications of interest and orders, both under the Fixed Allotment and the Centralized Allotment mechanisms,” said Hasan Fawzi, Chief Executive of the Capital Market, Financial Derivatives, and Carbon Exchange Supervision at OJK.

In addition, the mechanisms for securities distribution and fund transfer are now systematically regulated through System Providers, to ensure efficiency and mitigate settlement risks. Allocations under the Retail Centralized Allotment are now governed by a specific ratio (at least 1:2) to promote retail investor inclusion.