Regardless of the benefits that a SPAC provides, the current regulatory framework in Indonesia presents several regulatory challenges that will need to be addressed before SPAC IPOs (and de-SPACs) can be implemented in Indonesia, IFLR reports.
An important provision under the Indonesian Company Law that needs to be observed concerns merger requirements. The law requires a joint merger plan document to include, among other things, the financial report of each merging company for the past three years. This is quite different from an acquisition transaction, where the law only requires the latest financial report of each of the acquiring and target companies. Read more.
