New P2SK Law Targets Stronger Financial Stability and Legal Certainty
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- Indonesia’s parliament has passed a revision to the P2SK Law aimed at strengthening financial system resilience and adapting to rapid changes in the financial sector.
- The amendment enhances legal certainty, aligns with Constitutional Court rulings, and improves crisis mitigation frameworks in the national financial system.
- Lawmakers also seek to address emerging financial technologies while boosting governance and positioning Indonesia as a competitive global financial hub.
Jakarta — House of Representatives (DPR) Commission XI Chairman Mukhamad Misbakhun said the passage of the amendment to Law No. 4/2023 on Financial Sector Development and Strengthening (P2SK) marks a crucial step toward reinforcing the foundation of Indonesia’s financial system.
He emphasized that revising the law is increasingly urgent amid shifting economic conditions and the rapid evolution of the financial industry.
“We want to ensure that the national financial sector is supported by a stronger legal framework, making it better prepared to face future risks and challenges,” Misbakhun said in a statement on Friday.
He pointed out that pressure on the rupiah, volatility in financial markets, and the rapid pace of digital transformation underscore the need for a regulatory framework that is both adaptive and capable of providing legal certainty for all stakeholders.
One of the key elements addressed in the amendment, he added, is the alignment of several provisions with Constitutional Court rulings, particularly concerning investigative authority in financial sector crimes involving the Financial Services Authority (OJK) and the National Police.
Beyond improving legal certainty, the revision also aims to strengthen risk mitigation frameworks and crisis management mechanisms to safeguard the resilience of the national financial system.
Such measures are critical, he noted, as disruptions in the financial sector can directly affect the broader economy and put pressure on the state budget.
“We want risks to be anticipated early so they do not become a heavier burden on the state budget,” he said.
Misbakhun also highlighted that developments in financial technology were a major consideration behind the amendment. New instruments and business models, including crypto assets and tokenization such as Real World Assets (RWA), have evolved faster than existing regulatory frameworks.
Through this revision, the DPR seeks to provide clearer legal certainty for industry players while ensuring stronger protection for consumers of financial services.
He added that strengthening governance, transparency, and modernization of the financial sector are also key components of the amendment, including efforts to support the development of Indonesia as an international financial hub and enhance its competitiveness.
“If Indonesia wants to become a competitive financial center, trust must be built through strong governance and legal certainty,” he said.
Earlier on Thursday, a DPR plenary session approved the amendment to Law No. 4/2023 on Financial Sector Development and Strengthening (P2SK), officially enacting it into law.
Indonesianpost.com | Antara
