The Ministry of Finance Awaits the DPR's DIM for the Revision of P2SK Law

Commission XI of the House of Representatives (Dewan Perwakilan Rakyat– “ DPR ”) will revise Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“ P2SK Law ”). The revision was carried out after a decision of the Constitutional Court that annulled the authority of the Minister of Finance in drafting Annual Work Plan and Budget (Rencana Kerja dan Anggaran Tahunan– " RKAT ") of the Indonesia Deposit Insurance Corporation (Lembaga Penjamin Simpanan– " LPS "). Henceforth, this authority will be transferred to the DPR.

"Since this is a DPR initiative, we have not yet received the DIM or information on which articles will be revised regarding that authority. Essentially, we only receive consultations from them (LPS)," said Heru Pambudi, Secretary General of the Ministry of Finance to Hukumonline.

Based on Decision of Constitutional Court No. 85/PUU-XXII/2024 (" Decision 85/2024 "), it was stated that the P2SK Law needs to be amended, particularly regarding the phrase"to obtain approval"found in Article 86 paragraph (4). The phrase"the Minister of Finance shall grant approval"in paragraph (6) of the P2SK Law was declared conditionally unconstitutional, insofar as it is not interpreted as"DPR approval."

A similar provision also applies to the phrase"that has obtained the approval of the Minister of Finance"found in Article (7) paragraph (7) point 57.

“So if that is the Constitutional Court's decision, we will simply follow it," he concluded.