“Following the promulgation of POJK 53/2017, BEI has introduced Papan Akselerasi as a medium for small or middle asset scale-company to get alternative funding through the capital market.”
To provide the opportunity for an issuer with small asset scale or middle asset scale to obtain alternative funding through the capital market, the Indonesian Financial Services Authority (“Otoritas Jasa Keuangan” or “OJK”) has promulgated OJK Regulation No. 53/POJK.04/2017 on Registration Statement for Initial Public Offering and Capital Addition with Granting Rights Issue by Issuer with Small or Medium Scale Assets (“POJK 57/2017”).
Following the promulgation of the said regulation, the Indonesian Stock Exchange (“Bursa Efek Indonesia” or “BEI”) has introduced Papan Akselerasi as a listing board for an issuer with small or medium scale assets.
Definition and Criteria
Decree of Board of Director BEI No. Kep-00058/BEI/07-2019 on Special Provisions of Stock Registration and Equity Effect Other than Share in Papan Akselerasi by Issuer (“Regulation I-V”) has defined Papan Akselerasi as a listing board which provided for an issuer with small or medium scale assets that unable fulfill the requirement of Development Board (Papan Pengembangan).
Further and Based on POJK 57/2017, criteria of an issuer with small and medium scale asset could be found in the following table:
| An issuer with small scale asset | An issuer with medium scale asset |
| Maximum total asset in the amount of IDR 50 billion based on a financial report which used for the registration statementNot directly or non-directly controlled by non-small or medium-scale asset issuer and/or company with asset more than IDR 250 billion | Maximum total asset more than IDR 50 billion until IDR 250 billion based on a financial report which used for the registration statementNot directly or non-directly controlled by non-small or medium-scale asset issuer and/or company with asset more than IDR 250 billion |
Requirements
The requirements for prospective small or medium scale list-company are as follow:
- In the form of limited liability company (Perseroan Terbatas).
- Effective Registration statement from OJK, which obtained by submiting the following information or documents to OJK:
- Cover letter for registration statement;
- Prospectus;
- Latest Annual Financial Report or since the establishment of the company (less than one year), audited by Public Accountant;
- Legal opinion;
- Curriculum Vitae of Board of Director and Board of Commissioner; and
- Statement letters which attached in POJK 57/2017.
- The stock price during the initial public offering at least Rp50,00.
- Had conducted the operation activity, proofed by having operational income recorded
- The number of shares owned by controlled or ultimate shareholders is at least 20% shares from paid-up capital.
- The number of shareholders at least 300 account holder customers.
- An underwriting agreement for a public offering.
- Registering equity effect in Kustodian Sentral Efek Indonesia (KSEI).
The Things That Need To Be Considered
Prospective small or medium scale company with plans to conduct the initial public offering in Papan Akselerasi should be prepared to comply with OJK, and BEI provisions in the capital market as one of the provisions and the capital market principle must be adhered to is information disclosure.
The information disclosure is begin obligated in the publication of initial public offering at last two days after company obtain registration statement from OJK.
Moreover, the small or medium-list company must report its annual or semi-annual financial report, shareholders ownership registration list, and information related to projection progress periodically to BEI. The said reports are done to ensure small or medium-list company accountability to its investors and authority.
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Author: Kristalia Andiani Puteri
Gaffar & Co., Indonesian Boutique Law Firm which specializing and focus on commercial law areas include Finance Law.
For further queries and information, please contact us: +62- 21 22718638 | +62 – 811 877 216 | info@gaffarcolaw.com | www.gaffarcolaw.com
