Indonesian Issuers Delay Rights Issue Plans Amid OJK Regulatory Hurdles

Regulatory Delays Impact Capital Raising Efforts

Several Indonesian companies have been forced to postpone their planned rights issues due to delays in obtaining approval from the Financial Services Authority (OJK). The affected issuers include PT Pantai Indah Kapuk Dua Tbk (PANI) and PT Cahayasakti Investindo Sukses Tbk (CSIS).

PANI's Delayed Rights Issue

PANI, owned by Sugianto Kusuma (also known as Aguan), had planned to issue 1.11 billion shares at Rp15,000 per share. This rights issue was expected to potentially raise Rp16.73 trillion in fresh capital for the company. However, the process has been put on hold as the company awaits the OJK's effective letter regarding their registration statement.

CSIS's Postponement

Similarly, CSIS has also decided to adjust its rights issue schedule. According to Tjoea Aubintoro, the company's President Director, the adjustment is necessary due to the ongoing regulatory review process.

Market Implications

The delays in these significant capital-raising exercises highlight the critical role that regulatory approvals play in Indonesia's capital markets. The OJK's scrutiny is essential for maintaining market integrity, but it can also impact the timing and execution of corporate financing plans. Companies must navigate these regulatory requirements carefully to ensure successful capital-raising efforts.