Full Contents of the P2SK Law: Key Changes for LPS, BI, OJK, and Danantara

The Government and the House of Representatives (DPR) have officially agreed on amendments to the Financial Sector Development and Strengthening Law (P2SK), introducing major changes for the national financial industry. The law has been in force since its enactment on 17 June 2026. This revision strengthens the role and authority of Bank Indonesia (BI), the Financial Services Authority (OJK), and the Deposit Insurance Corporation (LPS), while opening up opportunities for developing new sectors such as crypto assets, a mineral and strategic commodities exchange, and the establishment of an Indonesian International Financial Centre. One key point in the legislation is the granting of legal protection for the LPS, members of the OJK Board of Commissioners, and members of the BI Board of Governors in carrying out their duties. Under the new law, the LPS is also reinforced as an independent state institution with stronger governance and budget mechanisms. Meanwhile, the OJK has been given a new mandate to supervise and regulate the mineral and strategic commodities exchange as well as various other public fund management activities. Bank Indonesia has also received a strengthened mandate to implement policies that better support real sector growth. Additionally, the new rules expand banking business activities, strengthen bank consolidation, and facilitate easier access to financing for micro, small, and medium enterprises (MSMEs). In the capital market, the government is pushing for the demutualisation of the Indonesia Stock Exchange (BEI) to strengthen governance, boost investor confidence, and broaden stakeholder participation. The new regulations also accommodate margin transfers in financial market transactions and regulate the issuance of Danantara Debt Securities based on professional and accountable principles. The crypto asset industry has also received special attention. The government hopes that stronger regulation will enhance the attractiveness and competitiveness of crypto assets, enabling them to contribute more significantly to the national economy. The revision of this law also strengthens efforts to eradicate illegal financial activities through the formation of a special task force to handle unlicensed businesses, consumer protection violations, and the use of financial sector technology for gambling activities. Overall, the changes to the P2SK Law are aimed at strengthening financial system stability, deepening the domestic financial market, improving coordination among authorities, and boosting public and investor confidence in Indonesia’s financial sector.