OJK Tightens Oversight – Mandates IPO Proceeds Placed in Dedicated Account

Jakarta – To promote reform and transparency in the capital market, Indonesia’s Financial Services Authority (OJK) has tightened oversight of initial public offering (IPO) proceeds by mandating their placement in a dedicated account. This policy represents a key step in strengthening corporate governance in Indonesia’s capital market.

Eddy Manindo Harahap, Deputy Commissioner overseeing Investment Management, Capital Market and Securities Institution Supervision at OJK, stated that this requirement has recently been enacted. “When an IPO occurs, the proceeds must be placed in a dedicated account so we can monitor how the funds are used,” Harahap said in Jakarta.

Harahap added that OJK will issue additional regulations in future to strengthen the broader Indonesian capital market industry. “We will introduce further measures aimed at strengthening the securities industry, investment managers, and other areas,” he said.

He noted that whilst these strengthening measures were already part of the regulator’s work programme, current market dynamics have prompted OJK to accelerate their implementation. “Although it was already scheduled, this momentum will accelerate it further,” Harahap explained.

The requirement governing IPO fund usage is set out in OJK Regulation (POJK) No. 40 of 2025 on the Use of Public Offering Proceeds. Under Article 20 of POJK No. 40 of 2025, issuers are required to deposit public offering proceeds into a dedicated collection account. Article 21 stipulates that this account must be held in the issuer’s name at a conventional or Islamic bank supervised by OJK and must be kept separate from the company’s operational accounts.

Issuers are also obligated to submit account statements to OJK alongside their Realisation Report on Fund Usage (LRPD). “Issuers must attach statements of the dedicated account as stipulated when submitting the LRPD to the Financial Services Authority,” states Article 21, paragraph (2) of the regulation.

Should issuers violate these requirements, OJK can impose administrative sanctions including written warnings, monetary penalties, restrictions on business activities, suspension of operations, business license revocation, approval cancellation, registration cancellation, withdrawal of registration statement effectiveness, or revocation of individual licences.