JAKARTA - The Indonesian Central Securities Depository (KSEI) stated that technical and system preparations related to the implementation of the electronic proxy (e-proxy) platform in the Indonesian Capital Market have reached 95 percent.
President Director of KSEI, Uriep Budi Prasetyo said that currently the implementation of e-proxy is just waiting for the issuance of regulations as a legal umbrella for running e-proxies from the Financial Services Authority (OJK). Uriep also estimates that the regulation from the OJK will be published at the earliest in the second quarter of 2020 or mid-2020.
"We are waiting for the OJK Regulation. It is hoped that the first semester of 2020 will be published," Uriep told reporters in Jakarta, Monday, December 23.
As is well known, the e-proxy platform is a system that allows investors to participate in the General Meeting of Shareholders and Extraordinary General Meeting of Shareholders held by issuers without being in person at the event location, or being present online.
So far, said Uriep, not a few issuers have held the GMS or EGMS outside Jakarta or in their production base locations. This is an obstacle for most investors to attend the GMS. Vice versa, investors who live in areas have difficulty attending the GMS of issuers, most of which are held in Jakarta.
"With e-proxy, it is a solution so that investors can still obtain their rights to attend the GMS wherever it is held," he explained.
CSA Research Institute Senior Analyst, Reza Priyambada said that the low level of shareholder participation in GMS activities is a problem that is always encountered for companies that have quite a lot of shareholders and are scattered in many places.
"E-proxies can reach investors who live in different areas with the issuer, so that they are always updated with the condition of the issuer, especially during the General Meeting of Shareholders," Reza told VOI.
In addition, with this system, voting in the GMS can run more transparently than the votes of the shareholders who are represented. "With this regulation, it is hoped that the voices of investors can be represented," he said.
However, according to him, the next homework is about socialization to investors. "Now there are many representatives of the Indonesia Stock Exchange (IDX) in each region. Make the socialization, they can also invite securities in the region, which they will convey to their customers," said Reza.
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