The Indonesian Financial Service Authority (Otoritas Jasa Keuangan or “OJK”) issued a new regulation on December 29th, 2023, regarding the buyback requirements for public companies, POJK No. 29 of 2023 (“OJK Reg. 29”), and replaces POJK Nomor 30/POJK.04/2017. 

Key changes in the new regulation include source of buyback funds, buyback completion timeline, extended transfer period after buyback (refloat), refloat reporting obligations, additional refloat methods, and refloat price regulation. 

As of this alert, several public companies are implementing or planning share buybacks under the new regulation. The market’s positive response indicates favorable reception of the new rules.

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