INDONESIA Law and Practice Contributed by: Emir Nurmansyah, Monic N. Devina, D. Meitiara P. Bakrie and Nesya Ashari, ABNR Counsellors at Law
• be issued, stored, transferred, and/or traded: (a) using distributed ledger technology or other technologies; or (b) referring to underlying digital financial assets in the form of crypto-assets or other digital financial assets listed in the Digital Financial Asset List; • not be a financial asset recorded electronically by a financial services institution; • not be sourced from and/or not be used in activi - ties that violate statutory regulations; and • meet other criteria determined by the OJK. In addition to the foregoing, a tradeable crypto-asset must also fulfil the following conditions: • it must be a primary digital representation of value; • it must use a distributed ledger technology that is publicly accessible; • it must have utility and/or be asset‑backed; • it must be traceable or must not contain features that obscure or conceal ownership and transaction data; and • it must have undergone an assessment using the methods stipulated in the Exchange’s regulations and rules. Crypto-assets may only be traded on locally licensed platforms after being admitted to the official Digi - tal Financial Asset List (Whitelist) maintained by the licensed crypto exchange ( bourse ) and verified by the OJK. See 10. Blockchain for more detail on the criteria for crypto-assets. 6.4 Listing Standards In Indonesia, listing standards are relevant for prod - ucts in the capital markets sector, which includes stocks and bonds. The listing must follow the rules of the Indonesian Stock Exchange (IDX). There are currently three listing boards on the IDX: the main, development and acceleration boards. The main and development boards are designated for companies that have already started operations within a certain period and have a certain level of assets. For example, to list its stocks on the main board a compa -
ny must have net tangible assets of more than IDR100 billion, while to be listed on the development board, it must have IDR5 billion in assets and an income of more than IDR40 billion. Most companies in Indonesia list their stocks on the main board. The acceleration board is designated for small- and medium-scale businesses with a range of assets from IDR50 billion to IDR250 billion. Small- and medium- scale companies may list their stocks immediately upon establishment. The financial and accounting requirements and the offering structure for the accel - eration board are relatively simple compared with those for the main and development boards. 6.5 Order Handling Rules In relation to stock trading, both the OJK and the IDX set out general rules on procedures that need to be implemented by securities brokers when handling their customers’ orders. In accepting orders, the OJK requires securities brokers to verify customer identity and record details of the order, such as the number, type and price of the stocks. The securities broker must also maintain a risk-management unit that is responsible for, among other things, verifying orders or instructions from customers to ensure the avail - ability of funds or stocks for settlement of the trans - action. Specifically, securities brokers that operate a trading platform must ensure that the platform pro - vides information on procedures to handle delays to orders owing to an interruption of the online system. The IDX also stipulates that a securities broker may only accept and execute a trading order from a board member or member of staff if the securities broker maintains a standard operating procedure that stipu - lates, among other matters, the prioritising of cus - tomer orders. 6.6 Rise of Peer-to-Peer Trading Platforms Before the acknowledgment of cryptocurrency as crypto-assets, many players in the sector estab - lished peer-to-peer trading platforms to trade vari - ous cryptocurrencies. However, since the enactment of regulation on crypto-asset trading on futures and digital exchanges, trading was centralised to the crypto-assets futures exchange. Trading in crypto- assets needs to be carried out via a crypto-assets exchange approved by the OJK. This marks the end
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