Issuer is an entity that performs public offering, which is securities offering by an issuer in order to sell securities to public under procedures stipulated in applicable regulation and acts. Issuer can be individual, company, joint venture, association, or organized group.
An issuer may offer securities in the form of blanket lien, commercial paper, share, bond, debenture, unit subscription form of collective investment contract, index future, and any derivative of securities.
Another kind of securities is sukuk or securities of Islamic Sharia law, in which the agreement and issuance must comply with Sharia principles in stock market. Generally, issuer makes securities offering for share, bond and sukuk in stock market.
Public company is limited liability company as referred in Article 1 point 1 of General Provision of Law No. 40/2007 about limited liability company. The company’s shares are owned by at least 300 (three hundreds) shareholders and the company possesses a paid up capital of at least Rp 3,000,000,000 (three billion rupiah), or a certain amount of shareholders and paid up capital stipulated in government regulation.
An issuer is obliged to submit registration statement form to make public offering, while public company must submit registration statement form as a public company. In response to a submitted registration statement form, the Financial Services Authority or OJK (was Capital Market and Financial Institutions Supervisory Agency, or Bapepam-LK) will release an effective statement acknowledging that all requirements have been fulfilled according to procedures of submitting registration statement form as stipulated in current regulations. However, the effective statement is not OJK’s affirmation whether information given by the issuer or public company is fair or sufficient.