Sunday, 3 January 2016

OJK TO ISUE CIRCULAR LETTER ON BUYPACK OF SHARES IN TIME OF CRISIS



The Financial Service Authority (OJK) would soon issue a circular on regulations for buyback of shares in time of crisis. the measure was taken as follow up of stimulus policy package in the capital market in response to economic climate.

The Deputy Director of Communication of OJK stated in his press release in Jakarta on Friday (21/8) that issuance of circular letter, which was follow up of stimulus policy package at the capital market on July 24, 2015 as OJK’s effort to maintain trust of marketplayers at home.

So far OJK was still referring to buyback system applied since 2013, i.e. to be frozen if IHSG posted 15% downturn in 3 consecutive days. Besides, buying of buyback could only be done at maximum of 20% of paid up capital. Some efforts made maximum by OJK were among others doing buyback with 200 emitents and public companies on August 3, 2015 which called out emitents and public companies to uphold good corporate governance principles especially in a challenging climate as today.

Besides OJK also held meetings with the leaders of 15 professional associations in Governance on August 11, 2015 among others with the Institute of Internal Auditor Indonesia (IIA), KDKP. ACFE Indonesia and IKAI with the objectives to encourage the associations to play active role in safeguarding the implementation of good governance principles by players of national financial service industry.

OJK also held a meeting with BUMN Management and BUMN subsidiary companies on August 18, 2015 to enhance interest and readiness of BUMN to go public to support intensification of the stockmarket in Indonesia. (SS)

Business News - August 26, 2015

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