Other Conditions as Significantly Fluctuating Market Conditions in the Implementation of Share Repurchases by Issuers or Public Companies

To:
Directors of Issuers and Public Companies at their place.

COPY
CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER: 3/SEOJK.04/2020 CONCERNING OTHER CONDITIONS AS SIGNIFICANTLY FLUCTUATING MARKET CONDITIONS IN THE IMPLEMENTATION OF SHARE REPURCHASES BY ISSUERS OR PUBLIC COMPANIES

In relation to Financial Services Authority Regulation Number 2/POJK.04/2013 concerning Share Repurchases by Issuers or Public Companies in Significantly Fluctuating Market Conditions, hereinafter referred to as POJK Number 2/POJK.04/2013, it is necessary to regulate other conditions besides those already established in the aforementioned POJK Number 2/POJK.04/2013, in the following Financial Services Authority Circular Letter:

I. GENERAL PROVISIONS

1. That stock trading conditions at the Indonesia Stock Exchange from the beginning of 2020 until the establishment of this Financial Services Authority Circular Letter have experienced significant pressure, indicated by a decrease in the Composite Stock Price Index (IHSG) of 18.46%.

2. That the economic condition is experiencing slowdown and pressure, both regionally and nationally, among others caused by the COVID-19 outbreak.

3. That in order to provide economic stimulus and reduce the impact of significantly fluctuating markets due to trading conditions as referred to in item 1 and item 2, ease is needed for Issuers or Public Companies to carry out corporate actions of share repurchases without violating applicable statutory regulations.

4. That based on Article 1 number 1 letter b of POJK Number 2/POJK.04/2013, the Financial Services Authority has established other conditions as mandated in POJK Number 2/POJK.04/2013.

II. ESTABLISHMENT OF OTHER CONDITIONS AS REFERRED TO IN ARTICLE 1 NUMBER 1 LETTER b OF POJK NUMBER 2/POJK.04/2013

Based on the considerations as referred to in item I, then the following conditions:

-2-

1. Stock trading conditions at the Indonesia Stock Exchange from the beginning of 2020 until the establishment of this Financial Services Authority Circular Letter have experienced significant pressure, indicated by a decrease in the Composite Stock Price Index (IHSG) of 18.46%.

2. Regional and global economic conditions experiencing pressure and slowdown, among others caused by the COVID-19 outbreak.

are established as Other Conditions as referred to in Article 1 number 1 letter b of POJK Number 2/POJK.04/2013.

III. IMPLEMENTATION OF SHARE REPURCHASES BY ISSUERS OR PUBLIC COMPANIES

1. Issuers or Public Companies whose shares are listed on the Stock Exchange may conduct share repurchases based on the mechanism regulated in POJK Number 2/POJK.04/2013.

2. For Issuers or Public Companies that will or are conducting share repurchases or have acquired their shares due to repurchases (treasury) based on statutory regulations in the Capital Market sector regarding share repurchases issued by Issuers or Public Companies and will conduct share repurchases based on POJK Number 2/POJK.04/2013, then the total overall repurchases based on both regulations shall be at most 20% (twenty percent) of paid-up capital, with the provision that the minimum circulating shares are 7.5% (seven point five percent) of paid-up capital.

IV. CLOSING

The provisions in this Financial Services Authority Circular Letter shall become effective from the date of establishment until the date of revocation of this Circular Letter.

Established in Jakarta on March 9, 2020
Executive Head
Capital Market Supervision, signed
Hoesen

This copy is consistent with the original
Deputy Director of Legal Consultation and
Harmonization of Banking Regulations 1
Legal Directorate 1
Legal Department signed
Wiwit Puspasari