Investment regulation - Indonesia


Holding restrictions

Foreign shareholding in Indonesian companies
None, except in relation to banking, broadcasting and financing companiesBanks:
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.
Buy-Out tenders
For all listed securities except shares in banking entities that are subject to final approval from BIOnce 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.

Disclosure requirements

For details of the local domestic disclosure requirements, please refer to the Disclosure Requirements.