Indonesia – FSA Stock Splits and Mergers

Indonesia – FSA Stock Splits and Mergers

On 21 September 2022, IDN FSA issued a press release on the issuance of the regulation.


  • A public company must obtain approval in principle for the proposed stock mergers or stock splits from the same stock exchange that the company's shares are listed on.
  • Stakeholders must consider a public company's financial fundamental performance, ratio of stock splits and stock mergers, and the number of outstanding shares.


  • A public company is prohibited from conducting a stock split within 24 months of their IPO, or within 12 months from the effective date of a registration to issue securities.
  • A company may not conduct a stock split within 12 months of a the date of execution of a previous share split, or the effective date of a statement of business consolidation.
  • Within 12 months after stock merger or split, public companies are prohibited from raising additional capital other than for the purpose of improving financial position.

Delays and Implementation

  • Stock split must be carried out no later than 30 days after plan has been approved.
  • A company may delay the implementation of a stock split if the composite stock price index on the stock exchange falls more than 10% for 3 consecutive trading days.
  • As well as if there is a natural disaster or other adverse events affecting the business.