SEOJK No. 22/SEOJK.04/2015 on Other Conditions as Significantly Fluctuating Market Conditions in Share Repurchase by Issuers or Public Companies

To:
Board of Directors of Issuers and Public Companies

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY NUMBER 22/SEOJK.04/2015

CONCERNING

OTHER CONDITIONS AS CONDITIONS OF A SIGNIFICANTLY FLUCTUATING MARKET IN THE IMPLEMENTATION OF SHARE REPURCHASE BY ISSUERS OR PUBLIC COMPANIES

In relation to the Financial Services Authority Regulation Number 2/POJK.04/2013 concerning Share Repurchase by Issuers or Public Companies in Conditions of a Significantly Fluctuating Market, 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 this Financial Services Authority Circular as follows:

I. GENERAL PROVISIONS

1. That stock trading conditions on the Indonesia Stock Exchange have experienced pressure for the last 5 (five) months.
2. That the economic conditions are experiencing slowdown and pressure both regionally and nationally.
3. That in order to stimulate the economy and reduce the impact of a significantly fluctuating market due to trading conditions as referred to in item 1, ease is required for Issuers or Public Companies to carry out corporate actions of share repurchase without violating applicable statutory regulations.
4. That based on Article 1 item 1 letter b of POJK Number 2/POJK.04/2013, the Financial Services Authority establishes other conditions as mandated in POJK Number 2/POJK.04/2013.

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

Based on the considerations as referred to in item I, the following conditions are established as Other Conditions as referred to in Article 1 item 1 letter b of POJK Number 2/POJK.04/2013:

1. The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange which has continuously experienced a decline for the last 5 (five) months;
2. national economic conditions which have experienced a slowdown from the beginning of the year until the middle of the third quarter of 2015; and
3. regional economic conditions which have experienced pressure and slowdown.

III. IMPLEMENTATION OF SHARE REPURCHASE BY ISSUERS OR PUBLIC COMPANIES

1. Issuers or Public Companies whose shares are listed on the Stock Exchange may carry out share repurchase based on the mechanism regulated in POJK Number 2/POJK.04/2013.
2. For Issuers or Public Companies that will or are carrying out share repurchase or have already acquired their shares due to repurchase (treasury) based on statutory regulations in the Capital Market sector regarding share repurchase by Issuers or Public Companies and will carry out share repurchase based on POJK Number 2/POJK.04/2013, then the total overall repurchase based on both regulations shall be at most 20% (twenty percent) of paid-up capital, with the provision that the minimum public float of shares is 7.5% (seven point five percent) of paid-up capital.

IV. CLOSING

The provisions in this Financial Services Authority Circular shall be effective from the date of determination until the date this Circular is revoked.

Copy in accordance with the original

Legal Director 1
Legal Department,

Signed,
Sudarmaji

Determined in Jakarta on 21 August 2015

Executive Head
Capital Market Supervisor,

Signed,
Nurhaida