Written by Aimee Joy David on 22/10/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.
An insurance brokerage company in Indonesia is undergoing an acquisition, though both parties are encountering challenges due to a lack of clarity regarding legal requirements, regulatory approvals, and documentation. Putranto Alliance was engaged to address critical matters, such as changes in controlling shareholders, compliance with the Financial Services Authority (“Otoritas Jasa Keuangan”) regulations
, and ensuring data privacy. The acquisition process centered on aligning management with the new controlling shareholder, fulfilling regulatory obligations, and safeguarding sensitive information.
An insurance brokage company in Indonesia is set to be acquired by a leading firm in the industry. This move is expected to strengthen the acquiring company’s foothold in the Indonesian insurance market, offering expanded services and a more comprehensive portfolio to meet the growing needs of clients in the region.
Both parties are facing challenges due to a lack of understanding of the necessary preparations. Without clarity on legal requirements, regulatory approvals, and the proper documentation, the acquisition process is at risk of delays and potential setbacks. This uncertainty is causing complications in moving the transaction forward efficiently.
Both parties seek to address the matters above. Putranto Alliance was entrusted with assessing the potential impacts and assisting in navigating the acquisition process, ensuring that all key challenges are addressed and the transaction proceeds smoothly and efficiently such as:
Putranto Alliance assisted the client in understanding the necessary preparations for the acquisition and supported the transaction process through to its completion. These are the key points:
The acquisition will lead to a change in the controlling shareholder of the company. As control shifts to the new shareholder who has acquired the company, changes in management and operations are likely to follow. These adjustments may be implemented to align with the strategic vision and objectives of the new controller, potentially influencing the company’s leadership and day-to-day business activities.
The acquisition must comply with Indonesian regulations, ensuring that all legal requirements are met throughout the process. In the case of an insurance brokerage company, the acquisition must secure approval from Otoritas Jasa Keuangan. Additionally, the entire transaction must be properly documented in legal documents, such as a notarial deed, to formalize the acquisition and ensure compliance with applicable laws.
The
services provided emphasize the privacy and protection of both personal and
company data throughout the acquisition process. By implementing stringent data
protection measures, these services ensure that sensitive information remains
secure at all stages of the transaction. This focus on privacy safeguards the
interests of all parties involved, reinforcing trust and compliance with
relevant data protection regulations.
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Jakarta Selatan, 12950, Indonesia
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