OJK's New Regulations Enhance Transparency and Responsibility for Securities Underwriters

The Financial Services Authority (Otoritas Jasa Keuangan - “OJK”) is finalizing the draft regulation of OJK (“RPOJK”) on Internal Control and Behavior of Securities Companies Conducting Business Activities as Securities Underwriters and Securities Brokers.

Inarno Djajadi, Chief Executive of the Capital Market, Derivative Finance and Carbon Exchange (PMDK) Supervisor at OJK, said that the effort was made to improve the transparency and responsibility of issuers regarding the use of funds in the prospectus.

"OJK is also reviewing a more effective stock lock-up mechanism, while improving the quality of issuers offering shares through IPO," Inarno said in a written statement received by Hukumonline.

Broadly speaking, OJK will establish more detailed obligations and responsibilities for securities underwriters in the public offering process. This will enable securities underwriters and capital market supporting professions to ensure the credibility of prospective issuers through improved due diligence.

"It is still in the process of harmonization and is targeted to be published and enforced in 2025," he concluded.