In a groundbreaking move, a European company (“Client”), successfully launched its innovative Employee Shares Savings Plan (ESSP) in Indonesia. Due to its recent issuance, Dentons HPRP, a leading law firm in Indonesia, played a pivotal role in navigating the complexities of the Indonesian regulatory frameworks to secure approval from the Financial Services Authority (OJK) for this unique initiative. 

The ESSP extends ownership of the Client's shares not only to its Indonesian employees but also to those of its subsidiaries worldwide, marking it as the first successful registration of the Securities Offerings Classified as Non-Public Offerings, under POJK 29/2021 in Indonesia. The Dentons HPRP team, led by Partner Fabian Buddy Pascoal and supported by Senior Associate Rio Febrianus Pasaribu, and Associates Rafi Andiandra Wardhana and Jovanka Lingkanaya, organized the submission to OJK in June 2023, culminating in the receipt of OJK's approval in November 2023. This success enabled Client to initiate the offering period for its subsidiary employees in Indonesia. The maximum amount of savings shares that participants may purchase under the program is EUR 4 million.

This cross-border transaction involved the Client's subsidiaries worldwide, with the offering tailored to Indonesian participants adhering to local laws. Dentons HPRP's expertise not only addressed immediate client needs but also set a precedent for future innovative financial programs in the Indonesian market. The engagement of Dentons HPRP highlights the importance of local legal counsel in navigating complex regulatory landscapes, fostering positive impacts on the workforce, and establishing new standards in financial initiatives.

Dentons HPRP has been providing strategic advisory and comprehensive legal assistance to corporations in their business in Indonesia. For more details on our services, please contact the partners listed under the key contact.

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