Indonesian Political, Business & Finance News

Commission XI and Government Agree on Draft Amendment to Financial Sector Strengthening Law, Ready for Plenary Session

| Source: CNBC Translated from Indonesian | Regulation
Commission XI and Government Agree on Draft Amendment to Financial Sector Strengthening Law, Ready for Plenary Session
Image: CNBC

Jakarta, CNBC Indonesia - The Government and Commission XI of the House of Representatives (DPR) have agreed on the key points resulting from the discussions by the Working Committee (Panja) regarding the draft amendment to the Financial Sector Development and Strengthening Law (UU P2SK) Number 4 of 202lar.

The Chairman of Commission XI, Mukhamad Misbakhun, officially ratified the agreement after the working committee’s report was approved by all parliamentary factions within Commission XI, alongside the government, represented by Finance Minister Purbaya Yudhi Sadewa and Minister of Law Supratman Andi Agtas.

“I hereby strike the gavel to signify that this working committee report is valid, and its decisions will be processed further,” said Misbakhun in the Commission XI meeting room, Jakarta, on Wednesday (3/6/2026).

During the working meeting, the Chairman of the P2SK Bill Working Committee and Vice Chairman of Commission XI, Mohammad Hekal, presented the primary material and regulatory contents of the bill. “There are 17 key points of material and regulation within the P2SK amendment bill that have been agreed upon during the working committee discussions,” Hekal stated.

Before detailing the 17 points, Hekal noted that the drafting and synchronisation teams have formulated the new law to consist of 2 Roman numerals and 10 amendment figures, totalling 145 articles in total. These articles are the result of a thorough review of 1,212 items from the Government’s List of Issues (DIM), comprising 805 items for the main body and 407 items for the explanations, including emerging topics discussed during the committee sessions.

From the 1,212 DIM items, 485 were integrated into the main body and 224 into the explanations. The review also involved 167 redaction changes, 31 substantive changes, 76 additions, and 79 deletions across the various sections.

Following the detailed analysis of the DIM and emerging issues, the 17 key regulatory points agreed upon in the P2SK Amendment Bill are as follows:

  1. Institutional framework of the LPS (Deposit Insurance Corporation)

  2. Institutional framework of the OJK (Financial Services Authority)

  3. Institutional framework of Bank Indonesia

  4. Performance evaluation of LPS, OJK, and Bank Indonesia by the DPR

  5. Expansion of scope for conventional and Sharia banking

  6. Demutualisation of the Stock Exchange in the Capital Market

  7. Margin transfers in financial market transactions

  8. Danantara Debt Instruments

  9. Insurance and Sharia insurance companies in resolution processes

  10. Mandatory traffic accident insurance funds

  11. Exchange for minerals and strategic commodities

  12. Crypto assets

  13. Task force for the prevention and handling of online loans and online gambling

  14. Indonesia’s International Financial Centre

  15. Handling of bad debts for MSMEs

  16. Investigation and inquiry within the financial services sector, including restorative justice mechanisms

  17. Banks under recovery processes

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