Tech Listings In Indonesia May Benefit From OJK Rule

Indonesia's Financial Services Authority (Otoritas Jasa Keuangan or "OJK") has issued a rule that may provide a sweetener for tech startups to undertake an initial public offering ("IPO") in Indonesia.

OJK Rule No. 22/POJK.04/2021 on the Stipulation of a Share Classification with Multiple Voting Rights by Issuers with Innovation and High Growth Rates Conducting a Public Offering of Equity Securities in the Form of Shares ("POJK 22/2021") came into effect on 2 December 2021. 

While private companies can generally have a share classification with multiple voting rights ("MVS"), this was not previously the case for public companies. One of the key concerns for startup founders in conducting an IPO in Indonesia is the potential dilutive effect on their ownership, which affects their ability to retain control of the company. By allowing these founders to hold MVS, startup founders will now have a mechanism to retain certain control over the company and protect