Document background
The Standby Equity Purchase Agreement (SEPA) is a strategic financing instrument commonly used in Indonesian capital markets to provide companies with flexible access to equity funding. This document is typically employed when a company seeks to secure a reliable source of future capital without immediate dilution, while ensuring compliance with Indonesian regulatory requirements, particularly OJK regulations. The agreement becomes relevant when companies anticipate future capital needs but prefer to maintain control over the timing and amount of equity issuance. It includes comprehensive provisions for share pricing, issuance mechanics, regulatory compliance, and investor rights, tailored to the Indonesian legal framework. The document is particularly valuable for growing companies looking to fund expansion plans, working capital needs, or strategic initiatives while maintaining financial flexibility.
