Document background
The Stock Repurchase Agreement is a vital instrument used in Indonesian corporate transactions when a company wishes to buy back its own shares from existing shareholders. This document is crucial for both public and private companies operating under Indonesian law, requiring careful consideration of the Company Law (Law No. 40 of 2007), capital market regulations, and OJK requirements. The agreement becomes necessary in various scenarios, including share price stabilization, excess cash utilization, or corporate restructuring. It must address specific Indonesian regulatory requirements, including maximum buyback limitations, pricing mechanisms, and mandatory shareholder approvals. The document typically includes detailed provisions on purchase price calculations, payment terms, regulatory compliance requirements, and tax considerations specific to the Indonesian jurisdiction.
