OJK Tightens Regulation Regulations For The Use Of IPO Funds

Chief Executive of Capital Market Supervisory, Derivative Finance, and OJK Carbon Exchange Inarno Djajadi. (Photo: YouTube screenshot)

JAKARTA - The Financial Services Authority (OJK) will tighten and improve the regulation on the use of public offering funds or initial public offering (IPO) companies at PT Bursa Efek Indonesia (IDX).

Chief Executive of the Capital Market Supervisory, Derivative Finance, and OJK Carbon Exchange, Inarno Djajadi, said that his party had conducted a study on the Realization Report on the Use of Public Offering Proceeds Funds in order to perfect the existing arrangements in OJK Regulation (POJK) 30/POJK.04/2015 concerning the Realization Report on the Use of Public Offering Proceeds Funds.

"That is adjusted to regulations from other countries and practices in the Indonesian capital market," he said in a written statement, quoted on Tuesday, September 10.

Inarno added, there are several things related to the improvement of regulations, including related to the disclosure of information on reports of the realization of the use of more detailed funds, including the use of funds at the level of the subsidiary.

"In addition, there is also an alignment of the details of the use of funds between the prospectus and its realization. Regulation improvements will also be made regarding the procedure for changing the use of funds," he said.

Previously, the Financial Services Authority (OJK) submitted a fundraising in the capital market of IDR 135.25 trillion as of August 2024.

"The raising of funds in the capital market is still in a positive trend. The public offering value is recorded at Rp135.25 trillion, of which Rp4.39 trillion is the fundraising of 28 new issuers," said OJK's Chief Executive Supervisory of the Capital Market, Derivative Finance, and Carbon Exchange Inarno Djajadi at the RDKB OJK press conference Friday, September 6.

Inarno said capital market capital capitalization was recorded at Rp13,114 trillion, an increase of 6.29 percent month-to-date (mtd) and 12.34 percent year-to-date (ytd). Non-resident Setta recorded a net buy of Rp28.77 trillion (mtd) or Rp27.73 trillion (ytd).

"Mtd, strengthening occurs in almost all sectors with the largest strengthening in the non-cyclicalals and property & real estate consumer sector. On the liquidity side of transactions, the average daily transaction value of the stock market was recorded at Rp. 12.70 trillion ytd," he explained.

This strengthening trend encourages the Composite Stock Price Index (JCI) to score an all time high with a record high of 7,670.73 on August 30, 2024, or strengthen 5.72 percent (mtd) or 5.47 percent (ytd).

In the bond market, the Indonesia Composite Bond Index (ICBI) bond market index rose 1.71 percent mtd, up 4.41 percent ytd to the level of 391.14 with the average state securities yield (SBN) down 22.75 bps and up 3.12 bps (ytd), and non-residently recorded a net buy of IDR 39.24 trillion (mtd) or IDR 10.25 trillion (ytd).

For the corporate bond market, non-resident investors recorded net sales of IDR 200 billion mtd or IDR 2.47 trillion (ytd).

Inarno conveyed that in the investment management industry, the value of the asset under management (AUM) was recorded at IDR 841.37 trillion, an increase of 1.34 percent (mtd) or 2.02 percent (ytd), with a net subscription of IDR 1.42 trillion (mtd) and a net reduction of IDR 11.11 trillion (ytd).