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| The market was rather shocked by Bapepam’s rule change |
For those working in corporate transactions in Indonesia, an increasing part of the workload has concerned public companies. Founding or controlling families or shareholders have increasingly looked to international investors for the next phase in the business and, for investors, buying control of an established business can be a good way to enter or increase presence in an attractive market.
The year 2008 saw big changes in regulation and policy concerning control of public companies in Indonesia. This article examines one big change in Bapepam (the Indonesian capital markets regulator) rules that attracted a lot of attention. Initially stress tested in the more active markets of 2008, uncertainties may now linger for a longer period. It is important to be close to these issues when considering deals in Indonesia.
Bapepam Rule IX.H.1 as revised
The rule change concerned Bapepam Rule...