On Nov. 19, IDN EXC issued rules on mutual fund participation units.
IDN EXC issued regulation Kep-00183/BEI/11-2024 concerning the recording of mutual fund participation units in the form of collective investment contracts (KIK) whose participation units are traded on IND EXC to strengthen the mutual fund sector.
The regulation is an update to regulation Kep-310/BEJ/12-2006 dated Dec. 22, 2006.
Overview of Amendments
The rule includes provisions regarding mutual funds in the form of KIK whose participation units are traded on IDN EXC by implementing multi-class features.
Aims to support product development and add choices for investors in investing.
There is also a change in minimum initial net asset value (NAV/NAB) of mutual funds.
The minimum initial NAV stood at IDR 5bn but has been reduced to IDR 1bn.
The adjustment is expected to encourage investment managers to issue more mutual fund products in the form of KIK, also often called exchange-traded funds (ETFs).
Transition Period
To ensure the smooth implementation of this new system, IDN EXC will provide a transition period for investment managers when submitting listing documents.
During the transition period, investment managers can still submit documents in soft copy, via compact disk, hard disk, or a similar electronic media method, until a circular regarding the submission of documents via electronic systems is issued by IDN EXC.
Effectiveness
The regulation will come into effect on Nov. 15, 2025.
