Policy

Jakarta, 16 December 2024 – Indonesia Financial Services Authority (OJK) issued OJK Regulation (POJK) Number 18 of 2024 on Liquidity Providers as an effort to deepen the financial market and enhance the liquidity of securities traded through Stock Exchange Organizer.

This POJK serves as the legal foundation for liquidity providers to carry out actions, including the continuous buying and selling of securities by securities companies or other parties to maintain the liquidity of securities trading on Stock Exchange Organizer

It regulates the presence of Liquidity Providers as parties who have received approval from Stock Exchange Organizer to trade securities and are obligated to perform quotations on specific securities determined by the Stock Exchange Organizer to support the liquidity of those securities.

In this POJK, it is stipulated that parties eligible to act as Liquidity Providers, including Securities Brokers and other parties approved by the OJK.

The key provisions regulated in the POJK on Liquidity Providers include:

1. Requirements and Prohibitions for Liquidity Providers
2. Short Selling Transactions by Liquidity Providers
3. Regulation and Supervision of Liquidity Providers by Stock Exchange Organizer

This POJK will take effect six months after the date of promulgation, which is on 8 November, 2024.

When this POJK takes effect, the following provisions will be revoked and declared null and void:

1. Provisions regulating Liquidity Providers as stipulated in Article 10 letter h and Article 12 paragraph (2) of the Financial Services Authority Regulation Number 32/POJK.04/2020 concerning Securities Derivative Contracts
2. The provisions regulating Liquidity Providers as referred to in Article 36 paragraph (2) and Article 39 letter e of the Financial Services Authority Regulation Number 8/POJK.04/2021 concerning Structured Warrants are revoked and declared no longer in effect

Click here for POJK Number 18 of 2024 concerning Liquidity Providers