Indonesia: New listing rules

Author: | Published: 9 Dec 2014
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Ali Budiardjo Nugroho Reksodiputro

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Graha Niaga, 24th Floor Jl. Jend. Sudirman Kav. 58 Jakarta 12190

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+62 21 250 5125/5136

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+62 21 250 5001/5121 Visit Website
Oene Marseille Emir Nurmansyah
Late in October of 2014 the Indonesia Stock Exchange (IDX) issued new listing rules applicable to certain mining companies. Under this rule, a mining company in possession of an Mining Business Licence – Production Operation (Izin Usaha Pertambangan Operasi Produksi) or Special Mining Business Licence – Production Operation (Izin Usaha Pertambangan Khusus Operasi Produksi) may apply for registration with the stock exchange. This includes companies that are yet to start a production activity.

The pre-production company must have a 'proven' or 'probable' reserve as evidenced by a report from a competent party. Additionally, in obtaining approval for the listing, an independent valuation report is required. The report must state that the pre-production company will have obtained operational profit and net profit from its core business activities within four fiscal years of the listing date.

A holding company of a pre-production mining company may also file for listing with the IDX, provided that the subsidiary mining company possesses the proper Mining Business Licence and other required mining licences, and has proven or probable reserve as evidenced by the appropriate reports.

To be listed in the IDX main board, the applicant company is required to provide an audited financial statement showing a net tangible asset of at least Rp100 billion ($8.3 million). To be listed in the development board, the applicant company must show a net tangible asset of at least Rp5 billion.

There is also a requirement that at least one of the company's directors must have a technical background and must have had a managerial position at a mining company for at least five of the past seven years.

The company must also have submitted its work plan and operational budget to the relevant governmental agencies prior to listing.

This rule is valid from November a 2014.

Oene Marseille and Emir Nurmansyah