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Jakarta Post

OJK prepares regulation on equity crowdfunding

  • News Desk

    The Jakarta Post

Jakarta   /   Mon, July 9, 2018   /   01:04 pm
OJK prepares regulation on equity crowdfunding The Financial Services Authority (OJK) logo is seen on the frontispiece at its headquarters in Jakarta. (kontan.co.id/File)

The Financial Services Authority (OJK) is working on new rules for equity crowdfunding, where a large number of people invest in unlisted companies, usually through internet platforms.

OJK spokesman Sekar Putih Djarot said the authority had completed a draft regulation and was currently seeking input from the financial industry and other stakeholders.

“We aim to enforce the regulation as soon as possible,” Sekar said in Jakarta on Sunday, as reported by kontan.co.id.

Unlike initial public offerings (IPO) through the Indonesian Stock Exchange (IDX), crowdfunding typically involves a large number of retail investors placing small amounts.

“It is as an alternative way to collect funds for small and medium startups,” Sekar added.

Meanwhile, IDX president director Inarno Djayadi welcomed the OJK’ plan to issue the regulation, stressing that equity crowdfunding would help small and medium enterprises (SMEs) develop. “IT is good for SMEs,” he added.

Narada Asset Management research head Kiswoyo Adi Joe said the regulation would have a positive impact on the development of the domestic stock market, because it would diversify stock market products.

He said equity crowdfunding would not overlap with IPO investment encouraged by the IDX. “We still have to wait to see whether the regulations will support each other and enrich the choice of products,” Kriswoyo added. (bbn)