Discovering the Prospect of Securities Crowdfunding for Startup Ecosystems

OJK's act to expand alternative capitals for SMEs from equity crowdfunding (ECF) to securities crowdfunding (SCF) should be appreciated as the previous regulation had many cracks that did not accommodate SMEs, which were most are yet to be a form of limited liability companies.

The detailed regulations are contained in POJK 57/2020 concerning Securities Offerings through Information Technology-Based Crowdfunding Services, Replacing POJK 37/2018 which has a limited concern to stock-based crowdfunding services and Islamic stocks.

The regulation, which contains 13 chapters and 92 articles, contains the details of licensing, business activities, obligations and prohibitions, reporting, practice of securities offering and trading, also sanctions.