Commission XI: Revision of P2SK Law to Strengthen National Financial System Stability
Jakarta (ANTARA) - The Chairman of Commission XI of the Indonesian House of Representatives (DPR RI), Mukhamund Misbakhun, stated that the ratification of the Draft Law on the Amendment to Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK) is a significant step towards strengthening the foundations of the national financial sector. According to him, the revision of this law is crucial amidst economic dynamics and the continuous evolution of the financial industry.
“Through this amendment to the P2SK Law, we want to ensure that the national financial sector possesses an increasingly robust legal foundation, making it better prepared to face various risks and challenges in the future,” Misbakhun said in a statement in Jakarta on Friday.
He explained that pressures on the rupiah exchange rate, financial market volatility, and rapid digital transformation highlight the importance of Indonesia having a financial sector legal framework that is strong, adaptive, and capable of providing certainty for all stakeholders. One of the key substantive elements accommodated in the P2SK Law amendment, he noted, is the alignment of several norms in accordance with the Constitutional Court’s decision, including matters related to the authority for criminal investigations within the financial services sector involving the Financial Services Authority (OJK) and the National Police (Polri).
In addition to providing legal certainty, he continued, the amendments also strengthen the risk mitigation and crisis management framework to maintain the resilience of the national financial system. This step is essential because turbulence in the financial sector can directly impact the national economy and the state’s fiscal space. “We want risks to be anticipated early so they do not become a larger burden on the State Budget (APBN),” he emphasised.
He stated that the development of financial technology is one of the primary considerations for the DPR in approving the P2SK Law amendment. Various new instruments and business models, ranging from crypto assets to tokenisation (Real World Assets/RWA), are evolving much faster than the previously available regulatory frameworks. Through this amendment, the DPR encourages the creation of legal certainty for industry players while providing stronger protection for the public as users of financial services.
Misbakhun also explained that strengthening governance, transparency, and the modernisation of the financial sector are vital parts of the P2SK Law amendment, including supporting the development of the Indonesia International Financial Centre and increasing the competitiveness of the national financial sector. “If Indonesia wants to become a competitive financial hub, then trust must be built through strong governance and legal certainty,” said Misbakhun.
Previously, on Thursday (4/6), the Plenary Session of the DPR RI approved the Draft Law on the Amendment to Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK) to be enacted into law.