OJK Evaluates Exchange Dividend Rules

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) will adjust several OJK Regulations (“POJK”) so that they are aligned with the forthcoming Draft Government Regulation (“RPP”) on Demutualization. One of the regulations to be adjusted relates to provisions governing the restriction on dividend distribution.

“In the existing POJK, there are several regulations that we have identified that need to be adjusted,” said Hasan Fawzi, the Acting Chief Executive of Capital Market, Derivatives, and Carbon Exchange Supervision of OJK.

According to Hasan, OJK has submitted its official response to the RPP on Exchange Demutualization. The substance of the RPP is in line with the mandate of Law No. 4 of 2023 on Development and Strengthening of Financial Sector  (“Law 4/2023”), which opens opportunities for parties other than exchange members to become shareholders or owners of a stock exchange.

“We are still waiting for guidance on the mechanism and the stages structure toward demutualization,” he added.