Indonesia - Clearstream

Investment regulation
Holding restrictions
Foreign
shareholding in
Indonesian
companies
Disclosure requirements
Threshold Requirement
None, except in relation
to banking, broadcasting
and financing companies
Buy-Out tenders For all listed securities
except for shares in
banking entities which
are subject to final
approval from BI
Indonesia
Banks:
Banks may only list up to 99% of their share capital, the remaining 1%
must be owned by resident Indonesian investors.
Broadcasting companies:
Broadcasting Law # 32/2002 paragraph 17 states that foreign investors
cannot invest in private broadcasting companies unless for additional
capital (issuance of new shares) and with a maximum of only 20% out of
the total capital and consisting of at least 2 investors.
Financing companies:
For financing companies the Foreign Ownership Limit is 85% of the paid-up
capital.
Once an investor holds 25% or more of the total outstanding shares
(known as a "controlling shareholding") in a listed company, it is obliged
to disclose whether there is an intention to complete a full takeover of the
listed company. If there is such an intention, a tender offer process to
acquire the remaining shares must be conducted. A tender offer is not
required if the Controlling Shareholder can prove that there is no
intention to execute a full takeover. BI approval is required by investors
intending to exceed a 25% holding of shares issued by a bank.
For details of the local domestic disclosure requirements, please refer to the Clearstream Banking
Guide to Disclosure Requirements, which is an appendix to the Creation Market Guide.
Clearstream Banking
1 October 2008
Market Profile Indonesia - 3