To mitigate and reduce the impact of markets that fluctuate significantly and have the potential to put pressure on capital market stability, including the performance of the key players in the capital market industry, it is necessary to regulate the mechanism to maintain the financial system stability and the performance of the capital market industry. In this regard, Financial Service Authority/Otoritas Jasa Keuangan (OJK) as the regulator in the financial services sector, issued the Financial Services Authority Regulation Number 13 of 2023 on the Policies for Maintaining Capital Market Performance and Stability in Significantly Fluctuating Market Conditions (OJK Reg. 13/2023) as the framework to maintain the good governance in determining policies and accelerating the process of determining policies in the event of market conditions that fluctuate significantly while referring to the principles of openness, prudence, risk management, good corporate governance and in accordance with latest capital market conditions.

1. Legal Brief
Policies to Maintain Capital Market
Performance and Stability Amid Significantly
Fluctuating Market Conditions

2. Background
A H R P L e g a l B r i e f
To mitigate and reduce the impact of markets that fluctuate significantly and have the potential to put pressure on
capital market stability, including the performance of the key players in the capital market industry, the Indonesian
Financial Service Authority/Otoritas Jasa Keuangan (“OJK”) as the regulator in the financial services sector, plays a
role in maintaining financial system stability and the performance of capital market industry by determining the
precise policies to handle the volatility, stimulus, and/or relaxation for the key players in the financial services sector
in the capital market industry.
The Issuance of the New OJK Regulation
On 21 June 2023, the Government of the Republic of Indonesia officially revoked the COVID-19 pandemic status which
marked Indonesia entering an endemic period. The previous COVID-19 pandemic put pressure on capital market
stability. Subsequently, it is necessary to maintain the financial system and economic stability at the present time.
OJK issues the Financial Services Authority Regulation Number 13 of 2023 on the Policies for Maintaining Capital Market Performance and
Stability in Significantly Fluctuating Market Conditions (“OJK Reg. 13/2023”) to determine swift, responsive, measurable, and accountable policies
in maintaining the performance and stability of the capital market, while dealing with market pressures whether arising from crises, pandemics, as
well as global or domestic sentiment. Moreover, OJK Reg. 13/2023 was issued as a form of maintaining good governance in determining policies
and accelerating the process of determining policies in the event of market conditions that fluctuate significantly while referring to the principles of
openness, prudence, risk management, good corporate governance, and in accordance with latest capital market conditions.

3. Overview of OJK Reg. 13/2023
Scope and objectives of the authority of OJK amid significantly fluctuating market conditions.
Parameters of significantly fluctuating market conditions.
Buyback of shares issued by public companies amid significantly fluctuating market conditions.
Administrative sanctions.
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General Concepts
Capital Market
Public Company
Securities
Publicly-Traded Company
Investment Management Products
Market Organizer
Part of the financial system that is related to (i) public offering and
securities transactions; (ii) investment management; and (iii) issuers and
public companies related to the securities they issue; and institutions
and professions related to securities.
Marketable securities or investment contracts, both in conventional and
in digital form or other forms in accordance with technological
developments which entitle the holder to directly or indirectly obtain
economic benefits from the issuers or from certain parties based on the
agreement and any derivatives of securities, which may be transferred
and/or traded in the Capital Market.
The scope of
OJK Reg.
13/2023
Issuer that has conducted a public offering of equity securities or is a
Publicly-Traded Company.
Company with the number of shareholders and paid-up capital
determined by OJK regulations.
Party that organizes and provides systems and/or facilities to bring
together the Parties who carry out transactions on Securities or financial
instruments on the Capital Market or organized financial markets.
Mutual funds, individual customer Securities portfolio management, real
estate investment funds, infrastructure investment funds, asset-backed
securities in the form of collective investment contracts, asset-backed
securities in the form of participation letters, collective investment
contracts for the cultivation of public housing savings, investment funds
multi-asset in the form of collective investment contracts, and other
investment products regulated based on the provisions of laws and
regulations in the Capital Market sector.
A H R P L e g a l B r i e f
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4. Changes from the Previous Regulations
A H R P L e g a l B r i e f
Expansion of Definition to Significantly Fluctuating Market Condition
There were only 2 (two) indicators of significantly fluctuating market conditions, namely:
in the event where the IDX Composite is declining cumulatively by 15% (fifteen percent) or more for 3
(three) consecutive days; or
other conditions as stipulated by OJK, whereas OJK had issued CL 3/2020 to where the shares
market condition in Stock Exchange since early 2020 was negatively impacted with the decline of IDX
Composite in the amount of 18,46% (eighteen-point forty-six percent) due to regional and global
economic condition caused by COVID-19 pandemic.
Additional disclosure of information requirements
Public Company who conducts buyback transaction by virtue of Significantly Fluctuating Market
Condition are now required to not only disclose such information to OJK and stock exchange, but also
through public announcement.
Omission of requirement to disclose information over losses
OJK Reg. 13/2023 does not regulate the obligation to clearly disclose information on the losses incurred
by the resale price of the buyback shares in the company’s financial statement – which was regulated in
OJK Reg. 2/2013.
Additional Administrative Sanctions
OJK Reg. 13/2023 expands the administrative sanctions given by OJK which was not elaborated in OJK
Reg. 2//2013, as well as authorities given to OJK to conduct certain actions against the violating parties.
OJK Reg. 13/2023 revokes the applicability of the previous regulations, namely Financial Services Authority Regulation
Number 2/POJK.04/2013 on the Buyback of Shares Issued by Issuers or Public Companies in Significantly Fluctuating
Market Conditions (“OJK Reg. 2/2013”) as well as its implementing regulation, namely Financial Services Authority Circular
Letter Number 3/SEOJK.04/2020 on Other Conditions as Significantly Fluctuating Market Condition during Buyback of
Shares Issued by Issuer Company or Public Company (“CL 3/2020”), below are the key changes:
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5. Parameters of Significantly Fluctuating Market Conditions
A H R P L e g a l B r i e f
The decline in most or all of the prices of Securities listed
on the stock exchange or Market Organizers outside the
stock exchange which is of such a material magnitude
that occurs suddenly (crash).
The condition of Capital Market conditions is experiencing
a significant pressure.
Regional and global economic conditions which are
experiencing pressure and slowdown, so they have an
impact or have the potential to have a significant impact
on the stability of the Capital Market.
The occurrence of natural and/or non-natural disasters
which have an impact on the stability of the Capital
Market.
Resale (redemption) of shares or investment product
investment units of such a large and material nature that
occurs suddenly (crash), cessation of Securities trading
for the majority of investment product Securities portfolios
on the stock exchange or closing of the stock exchange
where the majority of investment product Securities
portfolios are traded.
Trading system failures or transaction settlements that
cause markets to fluctuate significantly, which include
technical problems in the trading system so that
transactions could not be properly processed.
Other conditions determined by OJK
Price Decline
Significant Pressure
Economic Slowdown
Disasters
Sistem Failure
Stock Exchange Crash
The Elucidations of the Related Parameters
The Determination of the Significant Pressure
The Scope of Disasters Price Decline in 2020
The condition of the Capital Market is experiencing significant pressure, when:
stock trading on the stock exchange is experiencing significant pressure due to the deterioration of the domestic and global financial services sector;
assets under management experiences a decline and/or a significant amount of redemption occurs; and/or
stock market trading bid-ask spread experiences a significant widening.
The disaster can be interpreted as an event or series of events that threatens and
disrupts people's lives and livelihoods caused either by natural and/or non-natural
factors or human error, which results in human casualties, environmental
damage, property loss, psychological impacts, disrupting the performance of
industry players in the financial services sector, and/or affecting the economic
conditions of society.
The example regarding the decline in most or all securities prices of such a large
material nature occurs suddenly (crash) occurred in 2020, when the decline in the
composite stock price index of more than 5% in 1 day and reached -5.63% in 6
consecutive days, as well as the comparative position of the composite share
price index on 9 March 2020 with the composite share price index at the end of
the previous year, there was a material decline of more than 15%.
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6. Scope and Objectives of the Authority of OJK
A H R P L e g a l B r i e f
With the issuance of OJK Reg. 13/2023, OJK is vested with authorities to stipulate regulations and policies to manage
significantly-fluctuating capital market condition with the aims to maintain the performance and stability of Capital Market through:
PROS
Policies related to Securities transaction Policies in leniency for management of investment
and/or investment management products
Granting stimulus
Leniency for financial services actors in
the Capital Market industry
Who can issue such
regulations/policies?
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Executive Head of
Capital Market Supervisor
Executive Head of Financial Derivatives
Executive Head of Carbon Trading
Types of Regulations and/or Policies
Giving instruction to the stock exchange, Market Organizer out of
stock exchange, clearance and guarantee institution, and/or
depository and settlement institution by adjusting the regulation to
support the stability of Capital Market without going through
formulating regulation procedures as regulated by OJK.
Stipulating regulation leniency upon the fulfilment of conditions on
report conveyance by financial institutions in capital market, as well
as in relation to corporate action, public offering, and report
conveyance for the issuers or Public Company to ensure its
business and/or to support the stability of Capital Market.
Stipulating policy leniency on management of investment and/or
investment management products.
Stipulating policies for other capital market industry actors which are
necessary to support the stability of Capital Market.

7. Buyback of Shares Issued by Public Companies
A H R P L e g a l B r i e f
When significantly-fluctuating market condition takes place, Public Company may conduct buyback of its shares so long as the
intended buyback transaction does not violate Article 91,92,95, and 96 of Law No. 8/1995. The intended buyback transaction shall
fulfil the following conditions:
In significantly-fluctuating market
condition, the buyback plan does
not require approval from the
General Meeting of Shareholders.
The maximum amount of buyback
is 20% from paid-up capital.
Buyback transaction can be done
within 3 (three) months after
disclosure of information by the
Public Company.
Public Company who intends to conduct buyback shall
disclose within 7 (seven) days the information to
OJK and stock exchange and shall convey public
announcement through:
a. Website of Stock exchange and Public Company,
for Public Company whose securities is listed in Stock
Exchange; or
b. National newspaper in Indonesian which circulated
across the archipelago or website provided by OJK
and Public Company’s website, for Public
Company whose securities is not listed in Stock
Exchange.
Should the transaction be
conducted through stock exchange,
then the purchase can only be
done through 1 (one) stock
exchange member.
Buyback transaction report must
be conveyed to OJK on the same
day as the transaction, after the
closing of shares transaction at
stock exchange.
The following parties are prohibited to conduct
transaction against the said Public Company’s
shares within the same period/day of the intended
buyback transaction:
a. commissioner, director, employees, and main
shareholders of the Public Company;
b. parties who may, due to his official position or
profession, obtain insider information; or
c. parties who within the last 6 (six) month are no longer
categorized as party as referred to in (a) nor (b).
Buyback shares shall be diverted within 30 days
(i) since the whole sequence of buyback by Public Company; or
(ii) since the end of buyback period.

8. Transfer of Shares
A H R P L e g a l B r i e f
since the buyback of the Public Company shares shall be fully
implemented; or
after the expiry of the buyback period within a maximum of 3 (three)
months after the disclosure of information,
The transfer of shares resulting from the
buyback shall be conducted in accordance
with the regulation of the Financial Services
Authority on the buyback of shares issued by
Public Companies.
Transfer of shares resulting from the buyback must be implemented after 30
(thirty) days:
a.
b.
In the event that the Public Company undertakes a corporate action which results in a change in the nominal value of the shares resulting from
the buyback, the calculation of the buyback price of the shares shall be adjusted by following the comparison between the nominal value of the
shares at the time of the buyback and the nominal value of the shares resulting from the corporate action in question.
Limitation
Transitional Provisions
Public Companies may still disclose information based on OJK Reg. 2/2013 no later than 7 (seven) exchange days since
OJK Reg. 13/2023 came into force.
Closing Provisions
Upon the effective enforcement of OJK Reg. 13/2023, OJK Reg. 2/2013 (State Gazette of the Republic of Indonesia of 2013 Number 143,
Supplement to the State Gazette of the Republic of Indonesia Number 5439) and provisions on implementing regulations regarding other
conditions as significantly fluctuating market conditions in the implementation of the buyback of shares issued by issuers or Publicly-Traded
Companies shall be repealed and declared invalid.

9. Administrative Sanctions
A H R P L e g a l B r i e f
1 The administrative sanctions shall be imposed towards any Party who violates the provisions as referred to in:
Article 11 OJK Reg. 13/2023 regarding the prohibition from conducting transactions on the shares of said Public Company within the period
of buyback of shares or on the same day as the sale of shares which are buyback by the Public Company through the stock exchange; and
Article 14 OJK Reg. 13/2023 regarding the obligation to transfer of shares resulting from the buyback implemented after 30 (thirty) days: (i)
since the buyback of the Public Company shares shall be fully implemented; or (ii) after the expiry of the buyback period within a maximum
of 3 (three) months after the disclosure of information,
The administrative shall also be imposed upon the Party causing the violation and shall be imposed by the OJK which the
procedures shall be implemented in accordance with the provisions of laws and regulations.
The administrative sanctions are imposed in the form of:
written reprimand;
fines, namely the obligation to pay a certain amount of money;
limitation of business activities;
suspension of business activities;
revocation of business license;
cancellation of approval; and/or
cancellation of registration.
In addition to the abovementioned administrative sanctions, OJK may announce the imposition and take certain measures against
any party who violates the provisions of OJK Reg. 13/2023 to the public.
Administrative sanction as referred to in number 3 letter b, letter c, letter d, letter e, letter f, or letter g may be imposed with or without
being preceded by the imposition of administrative sanction in the form of written reprimand as referred to in number 3 letter a.
Administrative sanctions in the form of fines as referred to in number 3 letter b may be imposed separately or jointly with the
imposition of administrative sanctions as referred to in number 3 letter c, letter d, letter e, letter f, or letter g.
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a
b
a
c
d
e
f
b
g

10. We will continue to follow the developments on this topic and provide additional information as it becomes
available. If you have any questions on this topic, please contact:
Hafidz Laksamana Botua
hafidz@ahrplaw.com
This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not
intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee concerning
the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it applies to your
circumstances before deciding to take any action.
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