JAKARTA (TheInsiderStories) – The Financial Services Authority (FSA) plans to revise the minimum values of public offering in the capital market from Rp1 billion to Rp5 billion (US$354,609.93). The regulator also aims to regulate the crowd-funding and disgorgement funds.
In the new regulation, the agency increases the core capital of the managers from initially Rp2.5 billion to Rp15 billion. According to the deputy commissioner at FSA, Djustini Septiana, the new regulation is expecting will be able to encourages more fundraising in the stock market.
While, Luthfy Zain Fuady, explained, the issuance of the new rules for the equity crowd-funding one of FSA’ effort to support the national economic recovery program (ERP) and help micro, small, and medium enterprises (MSMEs). The regulation were actually released in 2018, but until now there were only 111 issuers seeking funds through the crowd-funding platform with a very small offering value.
Apart from equity crowd-funding, FSA also looked the disgorgement fund rule. The latest regulation is expected help to restore the rights of investors who have losses due to the laws and regulations in the capital market. With the revises rule, it hope there will be a mechanism that can be taken to recover the investor losses.
This disgorgement fund is the refund for investor if experienced losses by market players who violate the capital market regulation. The maximum amount of funds is the same as the amount of profit based on the capital market law.
Currently, for investor protection, FSA has set up the Indonesia Securities Investor Protection Fund as an operator to raise a number of funds to protect investor who have loss on their assets caused of fraud. The amount of reimbursement is Rp100 million for investor and Rp10 billion for custodian bank. The violation that compensate with the disgorgement funds includes pseudo and insider trading.
in June, FSA and finance ministry has signed a joint decree to support the ERP based on the Government Regulation Number 23 Year 2020. The decree focused on the coordination implementation of placement of funds and interest subsidies for the companies.
“This joint agreement shall take effect as from the date of stipulation until by Dec. 31, 2021,” said the statement.
The cooperation aimed to optimize the provision of information from FSA in the context of placement funds and the provision of interest subsidies, specifically in the determination participating banks, placement of funds or extension of placement of funds at the participating banks, as well provision of interest subsidies.
As known, in May, President Joko Widodo has signed a special rule Government Regulation Number 23 of 2020 regarding ERP. The regulation written that the government can carry out capital injection to state-owned enterprises (SOEs), placement of funds, government investment, and guarantees for the program through state expenditure.
Finance minister, Sri Mulyani Indrawati explained, the government prepared the ERP Funds around Rp641.12 trillion in this year. In detail, part of the funds will used to support the consumption budget Rp172.1 trillion and an interest subsidy Rp34.15 trillion.
The government also provided tax incentives with total amount Rp123.01 trillion, including stimulus reserves amounting to Rp26 trillion. The country also allocates Rp25.27 trillion for capital injection to the SOEs. Then, provided fuel subsidies in the framework of mandatory biodiesel 30 percent worth of Rp2.78 trillion.
in addition, the compensation payment Rp90.42 trillion for state energy firm, PT Pertamina amounting to Rp45 trillion, food operator Perum Bulog of Rp560 billion and power producer PT Perusahaan Listrik Negara (PLN) worth of Rp45.42 trillion. For the tourism sectors, her ministry budgeted Rp3.8 trillion, housing Rp1.3 trillion, and spending Rp60 trillion.
There are also support for local government worth of Rp15.1 trillion, consisting of special allocation reserves Rp9.1 trillion, economic recovery up to Rp5 trillion, and loans to the regions as much as Rp1 trillion. Moreover, guarantee of new working capital loans for MSMEs Rp6 trillion.
Indrawati revealed, the government also provides a bailout fund for MSMEs working capital worth of Rp19.65 trillion and a placement of funds for loan restructuring Rp87.59 trillion. Funding will be carried out through the state bond issuances purchased by Bank Indonesia through the primary market.
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