Regulation on Reporting of Qualifying Investments

Agency for International Development and the Republic of Indonesia. The regulation aims to establish a framework for reporting qualifying investments in Indonesia. A qualifying investment is defined as any transaction exceeding the Threshold Amount and involving the purchase of equity or capital assets in Indonesia. The Threshold Amount is left undefined, with the option to establish a value similar to that used by the EU or the US. The regulation also excludes certain transactions, such as bank deposits, government securities, and routine business transactions, from the reporting requirements. The regulation requires reporting persons, including investment funds and investment fund managers, to file a report with the BAPEPAM-LK within 3013 calendar days of making a qualifying investment. The report must meet the requirements of Article 5, which outlines the necessary information to be disclosed. The regulation also establishes a distinction between principal reports and managed funds reports, with the former being filed by individuals or affiliated groups investing their own funds, and the latter being filed by investment funds or affiliated groups investing on behalf of others. The regulation leaves the enforcement of reporting requirements to the Indonesian authorities, recommending the use of existing capital markets laws as a basis for determining fines and penalties. The draft regulation also suggests that a limited report, similar to Form D, would be an effective way to capture the necessary information without disrupting the private equity market in Indonesia. The regulation defines key terms, including affiliate, affiliated group, exempt transactions, exempt persons, investment fund manager, investment fund, and qualifying investment. It also outlines the requirements for reporting persons, including the need to file a report within a specified timeframe and to disclose certain information. The regulation is intended to provide a framework for reporting qualifying investments in Indonesia, with the goal of improving transparency and accountability in the private equity market. The draft regulation is subject to review and revision by the BAPEPAM-LK and other stakeholders before being finalized. The regulation's geographic focus is on Indonesia, with a specific emphasis on the private equity market. The timeframes for reporting and compliance are specified, with a 3013 calendar day deadline for filing reports. The regulation also recommends the use of existing capital markets laws for enforcement purposes. The regulation's implementation details are outlined in the articles, which provide a framework for reporting qualifying investments. The regulation's scope is broad, covering a range of transactions and entities, including investment funds, investment fund managers, and other reporting persons. The regulation's recommendations for enforcement and compliance are also outlined, with a focus on using existing capital markets laws as a basis for determining fines and penalties.