Dematerialization of Equity Securities and Management of Unclaimed Assets in the Capital Market

The Financial Services Authority (OJK) issued Regulation No. 9 of 2025 to mandate the dematerialization of equity securities into scripless form and establish a framework for managing unclaimed assets in the capital market. The regulation addresses the handling of equity securities that cannot be converted due to uncontactable or legally incapacitated holders, as well as unclaimed investment assets during product liquidation. It simultaneously repeals previous provisions regarding physical share certificates and related administrative records to ensure a fully electronic market structure.

Indonesia

Otoritas Jasa Keuangan (Financial Services Authority)

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Regulation Search / Dematerialization of Equity Securities and Management of Unclaimed Assets in the Capital Market

Sector: Capital Market

Sub-Sector: Securities

Type of Regulation: OJK Regulation

Regulation Number: 9 of 2025

Effective Date: 5/6/2025

Appendix 1 POJK 9 of 2025 Dematerialization of Equity Securities and Management of Unclaimed Assets in the Capital Market.pdf Abstract of POJK 9 of 2025 Dematerialization of Equity Securities and Management of Unclaimed Assets in the Capital Market.pdf FAQ of POJK 9 of 2025 Dematerialization of Equity Securities and Management of Unclaimed Assets in the Capital Market.pdf

Page Content Financial Services Authority Regulation Number 9 of 2025 concerning Dematerialization of Equity Securities and Management of Unclaimed Assets in the Capital Market

Abstract: The formulation of this Financial Services Authority Regulation is carried out in follow-up to the Financial Services Authority's authority to regulate the obligation to issue Securities and convert Equity Securities (ES) into ES in scripless form, as regulated in Chapter V Article 22 in Article 5 letter a number 5 of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UUP2SK).

Furthermore, to anticipate the existence of ES that are not converted into scripless ES due to security holders who cannot be contacted, whose whereabouts are unknown, who do not process or claim the Securities, who have died, or who legally lack the authority to convert the Securities, regulations are needed that can accommodate the management of ES, which then becomes unclaimed assets in the Capital Market. Regulations on unclaimed assets in the Capital Market will also cover unclaimed investment management assets during the liquidation of investment products and other unclaimed assets in the Capital Market sector.

The legal basis for this Financial Services Authority Regulation (POJK) is: Law No. 8 of 1995 as amended by Law No. 4 of 2023; and Law No. 21 of 2011 as amended by Law No. 4 of 2023.

This Financial Services Authority Regulation regulates among other things regarding the obligation to issue Securities without physical certificates, the implementation and recording of Securities that have undergone ES Dematerialization, the prohibition of trading ES with physical certificates, the management of unclaimed assets in the Capital Market (including ES with physical certificates, Securities and/or funds at Custodians, other assets in the Capital Market), follow-up on unclaimed assets in the Capital Market, and the protection of shareholders' rights and asset owners.

Note: This Financial Services Authority Regulation (POJK) takes effect on the date of promulgation. This Financial Services Authority Regulation (POJK) was promulgated on May 6, 2025 and established on April 28, 2025.

At the time this Financial Services Authority Regulation takes effect: a. provisions regulating proof of ownership of Securities and damaged or lost share certificates and collective share certificates as referred to in Number 9 and Number 10 of Regulation Number IX.J.1, Appendix of the Decision of the Chairman of the Capital Market and Financial Institution Supervisory Board Number KEP-179/BL/2008 concerning Basic Principles of Companies Conducting Public Offerings of Equity Securities and Public Companies; b. provisions regulating Securities records at the Securities Administration Bureau or issuers and/or public companies that conduct their own Securities administration regarding physical certificate Securities as referred to in Article 11 paragraph (1) letter b of Financial Services Authority Regulation Number 22/POJK.04/2019 concerning Securities Transactions; c. provisions regulating Securities recording as referred to in Article 26, Article 27, and Article 28 of Financial Services Authority Regulation Number 3/POJK.04/2021 concerning the Conduct of Activities in the Capital Market Sector; and d. provisions regulating the issuance of Shares with Multiple Voting Rights with physical certificates in cases where Custody Accounts are not yet available as referred to in Article 7 paragraph (4) and paragraph (5) of Financial Services Authority Regulation Number 22/POJK.04/2021 concerning the Application of Share Classification with Multiple Voting Rights by Innovative and High-Growth Issuers Conducting Public Offerings of Equity Securities in the Form of Shares, are repealed and declared invalid.