P2SK Law Revision: OJK-LPS Selection Committee Proposed as Optional

Commission XI of the House of Representatives is discussing a proposal to make the selection committee for the Financial Services Authority (OJK) and the Deposit Insurance Corporation (LPS) optional. The discussion took place during a general hearing by the working committee revising Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector, or the P2SK Law.

Deputy Chairman of Commission XI, Fauzi Amro, explained that, based on current regulations, the procedure for selecting commissioners through a selection committee can take two to four months. As a result, the selection mechanism does not yet accommodate emergency conditions.

Fauzi cited the recent resignations of OJK officials as an example. “As you all know, the OJK faced a sudden tsunami a few months ago; if the law is rigid about the selection committee, the process is lengthy. Meanwhile, the market also needs certainty,” said Fauzi to reporters after the meeting on Monday, 6 April 2026.

According to Fauzi, the formation of the selection committee is the government’s domain. He stated that in normal conditions, the mechanism for forming the selection committee can still apply as already regulated. However, in emergency situations, the selection committee can be optional. Fauzi added that the distinction between normal and abnormal conditions will be explained in more detail in the P2SK Law revision.

In the meeting with Commission XI, the Chairman of the OJK Board of Commissioners, Friderica Widyasari Dewi, responded positively to the proposal. She said that OJK understands the need to keep the selection process accountable while being responsive to the timely filling of strategic positions.

“In that spirit, we in principle understand and agree with the direction of the proposal to formulate the selection committee mechanism more flexibly, as long as there is a clear legal basis and accountable procedures,” said Friderica at the House of Representatives building.

A similar response came from the Chairman of the LPS Board of Commissioners, Anggito Abimanyu. According to Anggito, LPS understands the initiative to make the selection committee more flexible. However, LPS also recognises the importance of maintaining public trust and credibility. Therefore, LPS proposes that the selection committee be retained but regulated through a presidential regulation.

“Therefore, we propose that the selection committee remains in place to maintain the quality of accountability, independence, transparency, and public trust, and that provision is sufficiently regulated by a presidential regulation to make it flexible enough,” said Anggito. He stated that LPS welcomes Commission XI’s initiative to make the selection committee more adaptive and flexible according to needs.