DPR Approves Amendment to Law on Financial Sector Development and Strengthening
Jakarta (ANTARA) - The Plenary Session of the Indonesian House of Representatives (DPR) approved the Draft Law on Amendments to Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK) to be enacted into law.
“We will ask once again to all members, whether the P2SK Draft Law can be approved to be enacted into law?” asked Deputy Speaker of the DPR RI Sufmi Dasco Ahmad, to which the legislators present at the DPR RI Building, Jakarta, on Thursday, responded with “agree”.
Before the approval was passed, Deputy Chairman of Commission XI of the DPR RI, Mohamad Hekal, explained that the Working Committee (Panja) of the P2SK Draft Law had discussed the list of issues (DIM) submitted by the government.
According to him, the government submitted 1,212 DIMs consisting of 805 DIMs for the main body and 407 DIMs for the explanation. Of this total, 485 DIMs were agreed to remain in the main body and 224 DIMs in the explanation section.
“As many as 167 DIMs are editorial changes in the main body and 79 DIMs in the explanation; 31 DIMs are changes in substance in the main body and 11 DIMs in the explanation; 76 DIMs are additions of substance in the main body and 60 DIMs in the explanation; and 46 DIMs in the main body and 33 DIMs in the explanation are deleted,” he explained.
According to him, there are 15 points of change in the P2SK Draft Law. First, strengthening the status of the Deposit Insurance Corporation (LPS) as an independent legal entity and state institution.
Second, adding the duties of the Financial Services Authority (OJK) to carry out supervision and regulation of activities in the capital market sector, derivative financial sector, carbon exchange, as well as mineral and strategic commodity exchanges, including the management of other public funds.
Third, strengthening the regulation of the objectives of Bank Indonesia (BI) in implementing policies and policy mixes that are conducive to the growth of the real sector and improving the arrangement of governance and accountability regarding the annual budget of BI.
Fifth, expanding the scope of business activities of general banks and Islamic general banks, adjusting the arrangement for handling non-performing loans to MSMEs, and strengthening the arrangement for banking consolidation through the preparation of a roadmap for the consolidation of general banks and Islamic general banks.
Sixth, strengthening the Indonesian capital market through the demutualization of the Indonesia Stock Exchange to strengthen governance, increase investor confidence, and expand the participation of stakeholders.
Seventh, adding regulations related to margin transfers in transactions in the financial market using a mechanism of transferring ownership rights over margins or transfer of title.
Eighth, strengthening the crypto asset industry which is expected to increase the attractiveness and competitiveness of crypto assets so that it can contribute significantly to the national economy.
Tenth, improving the arrangement regarding mandatory motor vehicle accident insurance funds to provide optimal protection to the public, including protection for single-vehicle accidents.
Eleventh, improving the arrangement for investigation and prosecution in the financial services sector and the restorative justice mechanism in accordance with the provisions in the Criminal Procedure Code.
Tweflth, improving the arrangement related to the adjustment of banks in the recovery process and the period of placement of funds by the LPS in order to be in line with bank recovery practices.
Thirteenth, the formation and strengthening of a task force that is tasked with preventing and handling unauthorized business activities in the financial sector, authorized business activities that are suspected of violating provisions and consumer protection, as well as the use of financial sector technology innovations for activities that are suspected of gambling.
Fourteenth, the arrangement regarding mineral and strategic commodity exchanges and fifteenth, the mandate for the establishment of the Indonesian International Financial Center.
“Hopefully, the P2SK Draft Law can be our joint effort to realize a resilient national economy through the optimization of the development and strengthening of the financial sector in maintaining the balance of progress and national economic unity to realize an Indonesian society that is just and prosperous,” said Hekal.