DPR ratifies P2SK Bill, the omnibus law for financial sector
JAKARTA – The House of Representatives of Indonesia (DPR RI) ratifies the Financial Sector Development and Reinforcement (lit. Pengembangan dan Penguatan Sektor Keuangan/P2SK) Bill. This bill ratification took place during the plenary session led by Puan Maharani, Speaker of DPR RI, yesterday (15/12).
With this ratification, P2SK Law will be the primary legal reference in the financial service sector. It consists of 27 chapters and 341 articles. It is dubbed the omnibus law for the financial sector as this bill will accommodate the substance of 17 existing laws that have regulated the financial service sector for years.
The discussion regarding P2SK Law involves several stakeholders in the government, including the Ministry of Cooperatives and SMEs, the Ministry of Investment/Indonesian Investment Coordinating Board, the Ministry of Law and Human Rights, as well as the Ministry of Finance.
This law also garners attention from other stakeholders, including the cooperative unit and SME actors and their opinion on savings and loans cooperative units that adopt an open-loop system, offering services for non-members. On the other hand, P2SK Law is said to be helpful in defining the boundaries for these cooperative units, especially for those who provide services exclusively to its members (closed loop). Until now, several cooperative units utilise this closed-loop system, although it should only focus on its members as regulated in the Cooperative Unit Law.
Other issues that fall under this law’s jurisdiction include the legality of legal institutions that will manage transactions of cryptoassets and other digital assets. Furthermore, with this new ratified bill, Bank Indonesia (BI) is allowed to purchase Government Securities (SBN) in the primary market in order to stabilise the financial system during crisis. (LK/ZH)