Revising the P2SK Law and a New Direction for Indonesia's Financial Sovereignty
Watching world football is preparing oneself to be struck by paradox. That is the first psyche faced by football fans. A nation that controls natural resources is not necessarily a nation that sets prices. A nation that possesses technology does not necessarily control capital flows. A nation with a large market is not necessarily a financial centre. In the 21st-century global economy, sovereignty is no longer determined solely by what a country owns, but by its ability to manage resources, shape prices, direct investment, master technology, and control the financial infrastructure that underpins economic growth.
It is in this context that the revision of the Financial Sector Development and Strengthening Law (UU P2SK) must be read. At first glance, the changes agreed upon by the DPR and the government appear to be a refinement of technical regulations. However, upon deeper examination, the revision reflects an effort to reorganise the financial sector architecture so that Indonesia is not merely a market, a raw material producer, or a technology user, but has greater control over the direction of its own economic development.
The relevance of this revision is further strengthened because the world is simultaneously experiencing three major shifts. First, the centre of economic growth is moving from the West towards Asia. Second, the commodity-based economy is transforming into a data and technology-based economy. Third, globalisation is shifting towards economic sovereignty competition, where countries race to control strategic supply chains, build domestic financial infrastructure, and strengthen national financing capacity.
Political economist Susan Strange described control over the financial system as part of structural power, namely a state’s ability to influence the direction of development through control over production, trade, knowledge, and finance. From this perspective, the revision of the UU P2SK is not merely a regulatory update, but also part of building the foundation of Indonesia’s economic sovereignty.
FROM PRODUCER TO PRICE MAKER
One of the most strategic changes is the establishment of the Indonesian Mineral and Strategic Commodities Exchange. Indonesia controls approximately 42% of the world’s nickel reserves and is the largest global producer. Indonesia is also a major producer of coal, tin, bauxite, and various critical minerals needed in the global energy transition. However, the prices of these commodities are still largely determined by foreign exchanges.
From a resource nationalism perspective, ownership of natural resources alone is insufficient. The greatest added value lies in the ability to control trade and price formation. Therefore, the Indonesian Mineral Exchange has the potential to change Indonesia’s position from a price taker to a price maker, while strengthening trade transparency, increasing foreign exchange, and supporting national downstreaming.
However, success does not happen automatically. Many resource-rich countries have failed to become global commodity trading hubs. Governance credibility, market liquidity, legal certainty, and the trust of global market players will be determining factors. The experience of China through the Shanghai Futures Exchange and Singapore as a commodity trading centre shows that mastering pricing requires strong institutions and long-term consistency.
ORGANISING A NEW DIGITAL FINANCIAL SPACE
The second pillar of the UU P2SK revision is the strengthening of regulations for crypto assets, fintech, and digital financial activities. The world is entering an era of asset tokenisation, blockchain, artificial intelligence, and stablecoins. Indonesia itself already has more than 14 million crypto investors with transaction values reaching hundreds of trillions of rupiah per year.
The revision of the UU P2SK shows that Indonesia is choosing a balanced approach: opening space for innovation while maintaining stability and consumer protection. This approach is in line with the steps taken by various global financial centres such as Singapore and the United Arab Emirates, which are actively building digital asset regulatory frameworks.
Nevertheless, good regulation does not automatically make Indonesia a regional digital innovation hub. National competitiveness is still determined by the quality of talent, research capacity, cybersecurity, and the investment climate. Regulation opens the door, but the ability to utilise it determines the final outcome.
On the other hand, strengthening supervision of illegal online loans, digital fraud, and online gambling shows that the revision also has a social protection dimension. Digitalisation must be a means of improving welfare, not a source of new vulnerabilities for society.
BUILDING THE FINANCING ENGINE FOR INDONESIA EMAS
The third pillar is strengthening the financing capacity for national development. The inclusion of regulations related to Danantara shows that the financial sector is no longer viewed solely as an instrument of stability, but also as an engine of growth.
The Indonesia Emas 2045 target requires massive investment to support industrial downstreaming, digital transformation, energy security, infrastructure development, and human resource development. These needs cannot rely solely on the state budget (APBN). Therefore, banking, capital markets, pension funds, insurance, financing institutions, and sovereign wealth funds must work as a single national financing ecosystem.
Danantara has the potential to play a strategic role similar to Temasek in Singapore or various sovereign wealth funds in the Gulf region. However, global experience shows that the success of state investment institutions depends heavily on governance, professionalism, transparency, and investment discipline. The measure is not the size of the assets managed, but the ability to create long-term economic value.
FINANCIAL SOVEREIGNTY AS A NATIONAL AGENDA
If examined comprehensively, the common thread of the UU P2SK revision is the effort to strengthen Indonesia’s financial sovereignty.