Financial Institutions and Markets

The Financial Services Authority (Otoritas Jasa Keuangan/”OJK”) has issued regulation on Equity Crowdfunding, i.e. OJK Regulation No. 37/POJK.04/2018 concerning Equity Crowdfunding (“POJK No. 37/2018”) which has been in force since 31 December 2018.

POJK No. 37/2018 sets out the terms and conditions for companies (particularly start-up companies) which intend to gain capital by way of fundraising with a concept of offering equity securities directly to investors through online platform operated by an equity crowdfunding operator (“Equity Crowdfunding”). The type of equity securities that are allowed to be offered in an Equity Crowdfunding platform are shares, whether conventional shares or sharia-based shares.

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