Indonesia unveils new takeover rules

JAKARTA, July 1 (Reuters) - Indonesia's capital market regulator said it had lifted the threshold for tender offers in takeovers to 50 percent from 25 percent, a move which could complicate takeovers in Southeast Asia's biggest economy.

The regulator, Bapepam, also said if the free float of a listed firm fell below 20 percent after a tender offer, the buyer would have to sell shares to ensure that there was at least a 20 percent market float within two years.

The new rules came into effect from Monday.

The ruling might complicate Qatar Telecom's (QTel) QTEL.QA $2.6 billion offer for outstanding shares in PT Indosat Tbk (ISAT.JK), Indonesia's second-largest mobile phone operator.

Draft proposals of the takeover rules had previously caught many fund managers and analysts by surprise and investors had said the amendments would hurt minority shareholders.

Bapepam officials were not immediately available to comment on the new rules or on the potential impact on QTel's tender offer plan.

A combination of political stability and an improving economic outlook helped Indonesia attract a record foreign direct investment of $13.8 billion last year.

But the country still lags countries such as China because of perceived legal uncertainties and graft. Some analysts are also concerned that political uncertainty ahead of next year's parliamentary and presidential elections, and a slowdown in economic growth, could hurt investment.

The new rules are aimed at ensuring that companies do not limit public trading after a takeover. (Reporting by Harry Suhartono, editing by Ed Davies and Anshuman Daga)