Revision of the P2SK Law, DPR Focuses on Improving Financial Governance

Commission XI of the House of Representatives of the Republic of Indonesia (“DPR RI”) has begun the initial process of revising the Law on Financial Sector Development and Strengthening (Pengembangan dan Penguatan Sektor Keuangan - “P2SK Law”). Member of Commission XI of the DPR RI Martin Manurung explained that the momentum for revision is not only focused on the judicial review decision of the Constitutional Court (Mahkamah Konstitusi - “MK”) but is also being used to improve a number of other articles, including those related to the functions of Bank Indonesia (“BI”).

“Since BI has the function of lender of last resort, there should be a form of strengthening because it is independent and its functions are not divided,” Martin told Hukumonline.

In addition to revising articles related to the budget management of the Deposit Insurance Agency (Lembaga Penjamin Simpanan - “LPS”), there is also discussion of articles related to the investigative functions of the Financial Services Authority (Otoritas Jasa Keuangan - “OJK”) whose judicial review was previously decided by the MK in 2023.

“We are currently continuing the discussion on the drafting of the academic paper for the revision of the P2SK Law,” he concluded.