P2SK Law a Tool for Downstreaming the Financial Sector, DPR Says: Indonesia to Become Global Price Setter

Deputy Speaker of the Indonesian House of Representatives (DPR) Sari Yuliati has stated that the Financial Sector Development and Strengthening Law (UU P2SK) is an instrument created by the executive and legislative branches to facilitate the downstreaming of Indonesia’s financial sector. “P2SK paves the way to integrate our natural resource strengths with the sophistication of the financial sector, which I refer to as the downstreaming of the financial sector,” Sari said at the CNBC Indonesia Investment Forum 2026 in the Main Hall of the Indonesia Stock Exchange, Jakarta, on Wednesday (15/7/2026).

Sari explained that the concept of financial sector downstreaming through the P2SK Law occurs when financial sector instruments are able to bring the pricing of commodities, which have long been determined by global financial markets, entirely back to Indonesia. Therefore, she said, the P2SK Law strongly regulates the establishment of carbon exchanges and strategic mineral exchanges, which will mandate financial authorities to turn the domestic natural resource market into a global price setter.

“We know Indonesia is a global mineral giant, but ironically for decades we have always acted as a price taker, accepting prices determined on exchanges in other parts of the world,” she explained. Sari emphasised that the presence of a credible mineral exchange, supported by a liquid market and legal certainty guaranteed by the P2SK Law, will enhance Indonesia’s bargaining position in the global value chain. This is not just about resource sovereignty, but how those resources are monetised and leveraged financially. “We want the benchmark price setting, the price discovery of nickel, copper, tin, and even carbon, to occur in this country we love,” Sari stated.