Indonesia's OJK Introduces Electronic GMS Regulations

When the Indonesian Company Law ("Law Number 40 of 2007") was enacted more than a decade ago, it introduced, through Article 77, the possibility of convening a General Meeting of Shareholders ("GMS") virtually, such as through an electronic platform with video or teleconference facilities ("E-GMS"). In practice, however, the use of E-GMS has been uncommon due to issues with the reliability of electronic systems, data security and, until recently, a lack of technical guidance from the Company Law or its implementing regulations.

That began to change during the COVID-19 pandemic, as the government began to introduce large-scale social restrictions ("PSBB") in regions around the country, including DKI Jakarta, the economic capital of the country and the epicenter of the virus outbreak. For publicly listed companies in particular, which must hold their annual GMS by the end of June, COVID-19 presents a dilemma. With thousands of public shareholders in some companies, it