to Indonesian
a. that in the framework to create a fair, orderly and efficient capital market and able to compete in the free trade era, it is necessary efforts that can support the Securities Company has a strong capital;
b. that in order to strengthen the Securities Company's capital, it is necessary to be opened to the public, including foreign to have securities Company's share;
c. that by ratification of several international agreements on trade of goods and services such as regulated in Law No. 7/1994 concerning Ratification of Agreement Establishing the World Trade Organization, it is necessary to review the provisions on the shares ownership of securities Company by foreign Investors;
d. that in relation with above considerations and the policies contained in the Decree of the Minister of Finance No. 455/KMK.01/1997, it is necessary to stipulate a new Decree of the Minister of Finance concerning share ownership of Securities Company by foreign investors;
1. Law No. 8/1995 (Statute Book No. 64/1995, Supplement to Statute Book No. 3608);
2. Law No. 7/1994 concerning Ratification of Agreement Establishing World Trade Organization (Statute Book of the Republic of Indonesia No. 57/1994, Supplement to Statute Book the Republic of Indonesia No. 3564);
3. Government Regulation No. 45/1995 concerning Management of Activities in Capital Market (Statute Book of the Republic of Indonesia No. 86/1995, Supplement to Statute Book of the Republic of Indonesia No. 3617);
4. Decree of the Minister of Finance No. 455/KMK.01/1997 concerning Purchase of Shares by Foreign Investors Through Capital Market.
DECREE OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA CONCERNING SHARES OWNERSHIP OF SECURITIES COMPANY BY FOREIGN INVESTORS.
In this Decree:
1. Foreign investor is foreign individual person or foreign legal entities.
2. Domestic Investor is an individual who is an Indonesian citizen or Indonesian legal entity.
(1) Joint Venture Securities Company shares may be owned by foreign legal entities engaged in the financial field other than securities companies up to 85% (eighty five percent) of paid up capital
(2) Joint Venture Securities Company can be owned by foreign legal entities engaged in securities that have obtained permission or under the supervision of Capital Market regulators in their home country up to 99% (ninety-nine percent) of paid up capital.
(1) In case of a national Securities Company or a joint venture made a Public Offering, the Securities Company's shares may be wholly owned by Domestic investors or Foreign Investors.
(2) Foreign Investors as intended in paragraph (1) may also consist of an individual who is a foreign citizen or a foreign legal entity is not engaged in the financial sector.
With the enactment of this Decree, the Decree of the Minister of Finance No. 467/KMK.010/1997 dated September 11, 1997 is declare null and void.
This Decree shall come into force on the date of stipulation.
For public cognizance, this Decree shall be promulgated by placing it in the State Gazette of the Republic of Indonesia.
Stipulated in Jakarta
on February 20, 2001
MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA
signed,
PRIJADI PRAPTOSUHARDJO