Misbakhun: Revised P2SK Law Fortifies Indonesia Against Financial Turmoil

Chairman of Commission XI of the Indonesian House of Representatives, Mukhamad Misbakhun, stated that the ratification of the Bill on the Amendment to Law Number 4 of 2023 concerning Financial Sector Development and Strengthening (UU P2SK) is a crucial step to reinforce the national financial sector’s foundation amidst changing economic dynamics and financial industry developments. According to Misbakhun, pressure 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 able to provide certainty for all stakeholders. “Through this revision of the P2SK Law, we want to ensure the national financial sector has a stronger legal foundation so it is better prepared to face various risks and challenges ahead,” said Misbakhun in a written statement in Jakarta on Friday (5/6/2026). Misbakhun explained that one of the important substances accommodated in the revision of the P2SK Law is the alignment of several norms according to the Constitutional Court Decision, including matters relating to the authority for investigating criminal offences in the financial services sector involving the Financial Services Authority (OJK) and the Indonesian National Police. Besides providing legal certainty, the revised law also strengthens the risk mitigation and crisis management framework to maintain the resilience of the national financial system. He noted this step is important because turmoil in the financial sector can directly impact the national economy and the state’s fiscal space. “We want risks to be anticipated earlier so they do not become a greater burden on the State Budget,” he emphasised. In addition, Misbakhun said that the development of financial technology was one of the main considerations for the House in approving the revision of the P2SK Law. Various new instruments and business models, from crypto assets to the tokenisation of Real World Assets (RWA), have developed far faster than the previously available regulatory framework. Through this legal revision, the House encourages the creation of legal certainty for industry players while providing stronger protection for the public as users of financial services. Furthermore, Misbakhun also explained that strengthening governance, transparency, and modernisation of the financial sector are also important parts of the P2SK Law revision, including supporting the development of the Indonesian International Financial Centre and enhancing the competitiveness of the national financial sector. “If we want to become a competitive financial centre, then trust must be built through strong governance and legal certainty,” concluded Misbakhun. Minister of Finance, Purbaya Yudhi Sadewa, explained that the revision of the P2SK Law focuses on a number of strategic aspects aimed at increasing the competitiveness of the financial sector while strengthening governance and coordination among authorities. One of the main substances is the institutional strengthening of the Deposit Insurance Corporation (LPS) and the Financial Services Authority (OJK). The government also welcomes various new arrangements that support the development of the financial sector, including strengthening the derivatives market through margin transfer arrangements in accordance with international standards, strengthening the policy guarantee programme for insurance companies, establishing a strategic minerals and commodities exchange, strengthening the crypto asset industry, and forming a Task Force for the Prevention and Handling of Online Lending and Online Gambling. This Bill also regulates the establishment of the Indonesian International Financial Centre as part of efforts to realise the vision of sustainable national economic development through the development of an international financial centre possessing financial, administrative, and operational independence. Concluding his speech, the Minister of Finance emphasised that synergy between the government and the House of Representatives is an important foundation in realising a financial sector that is resilient, inclusive, and globally competitive. “This revision of the P2SK Law is not merely a regulatory change, but a strategic step to build a stronger foundation for the Indonesian economy. Let us together realise a financial sector capable of driving prosperity for all Indonesian people,” he concluded.