Open AccessImplementation of Financial Services Authority Regulation №35/POJK.05/2015 Article 35 by Indonesian Venture Capital Companies in 2015
Author(s) -
Eka Mulia Al Amin,
Iza Hanifuddin
Publication year - 2021
Publication title -
journal of world economy, transformations and transitions
Language(s) - English
Resource type - Journals
ISSN - 2792-3851
DOI - 10.52459/jowett1281121
Subject(s) - venture capital , indonesian , social venture capital , business , finance , equity (law) , financial capital , indonesian government , capital (architecture) , accounting , economics , market economy , human capital , law , linguistics , philosophy , archaeology , political science , history
POJK or the Financial Services Authority Regulation is one of the official documents of the Indonesian government related to the state finance sector. Venture capital itself is one of the contributors to the economy of Indonesia, especially in terms of financing or equity participation. Therefore, regulations are needed to control the operation of venture capital businesses to avoid damages caused by problems/disruptions. Generally, the economic sector in Indonesia is highly regulated, and venture capital is not an exception. However, this paper only focuses on the analysis of the actual implementation of one of the venture capital regulations in Indonesia, namely POJK No. 35/POJK.05/2015 concerning equity participation in Venture Capital Companies (VCC), particularly, Article 35 which states that VCC must have a ratio of Equity to Paid-in Capital not less than 30%. For this research, the method of qualitative normative approach has been applied based on the secondary data concerning Business Operations of Venture Capital Companies. The results of this research show fulfillment of these implemented regulations in practice by the existing VCC and its potential.