The Financial Services Authority (OJK) targets two strategic policies in the capital market to be issued in the remainder of 2020. The two regulations are currently in process at the Ministry of Law and Human Rights for enactment. Head of the OJK 1A Capital Market Supervision Department, Luthfy Zain Fuady explained that the first OJK Regulation to be promulgated in December 2020 is a disgorgement fund. With this rule, investors in the capital market will receive compensation for losses arising from violations of laws and regulations."Every time there is a problem in the market that causes losses to investors, there is a mechanism to return the losses to investors," said Luthfy in a media gathering at the OJK, the Indonesia Stock Exchange (IDX), the Indonesian Clearing and Guarantee Corporation (KPEI), and the Indonesian Central Securities Depository. (KSEI), Tuesday (12/1).
This regulation is expected to transfer the rights of investors who have suffered losses due to violations of laws and regulations in the capital market. OJK will give a written order to the perpetrator of the violation to return a number of profits or losses that were avoided illegally or against the law. This regulation has actually been planned for a long time, but has not been able to materialize because of many issues related to this regulation. Some of these issues include the payment mechanism which requires regulation and coordination with other agencies that have the power to force the perpetrator to pay for the losses. "Not only in the context of collecting, but in the context of bankruptcy of parties who will be warned by disgorgement funds," said Luthfy.
Although this regulation is targeted to be enacted this year, its implementation can only start in 2021 with an effective period of 6 months after it is promulgated. Thus, this regulation is expected to be fully implemented in May or June 2021. This rule applies to cases that occur after this regulation is implemented and does not apply retroactively. Luthfy said that the OJK has actually given sanctions to the perpetrators followed by an order to pay certain money. However, the money was not given to the victims, but to the state treasury and became OJK revenue levies. OJK hopes that with this regulation, victims of violations in the capital market will receive an optimal return on funds. "We made a fairer mechanism. Don't get it because someone is wrong, OJK will receive the acceptance. It should be returned to the victim," said Luthfy.
Not only that, OJK will also revise the OJK regulations regarding equity crowdfunding, which was launched in 2018, into securities crowdfunding. In this revision, OJK has expanded the types of securities offered through this scheme, from previously only stocks, to debt securities and sukuk in the future. The criteria for issuer or issuer are also expanded. Currently, the securities issuer is only a limited liability company (PT). Later, small and medium enterprises (UKM) that are legal entities such as cooperatives, CVs, or firms can offer securities through this crowdfunding. OJK revised this regulation because it saw the majority of SMEs with non-PT legal entities. So that these SMEs can raise funds for capital, a regulation regarding fundraising instruments is also prepared in addition to selling shares to investors.
The large number of SMEs that have not met the requirements to raise funds has made the equity crowdfunding platform devoid of enthusiasts. Even though it has been two years running, there are only 111 companies seeking funds with an emission value of Rp 150 billion. "This means that it is very small. We find out why it is not growing, not good. It turns out that the legal form is SMEs, most of them are not PT. We revised the POJK, so that non-PT businesses can raise funds through this platform," said Luthfy. For next year, OJK plans to issue policies related to capital market supervision, such as regulating the control of issuers, including regulations regarding listed companies that will be expelled as issuers. Issuers are required to buy back their shares from the public. Several other policies that will be issued by the OJK next year include encouraging public offerings of debt securities and corporate sukuk and regional bonds. There is an opportunity, the public offering will be carried out by regional-owned companies.
