Government, DPR agree to bring P2SK Bill to Plenary Session

The Indonesian government and the House of Representatives' Commission XI have reached an agreement to bring the draft law on the Development and Strengthening of the Financial Sector (P2SK) to a plenary session scheduled for June 4, 2026. This move signifies a crucial step in reforming the nation's financial landscape.

According to the working group chairman, Mohamad Hekal, the P2SK draft law includes 17 main points of substance and regulation. These cover a wide range of areas, from institutional reforms of key financial bodies to new regulations for emerging financial instruments. The agreement was reached after deliberations by the drafting and synchronization teams, resulting in a draft comprising two Roman numeral chapters and 105 amended articles, totaling 145 articles overall.

Finance Minister Purbaya Yudhi Sadewa expressed hope that the P2SK law will bolster the development, deepening, and stability of the national financial system, thereby enhancing public trust. The 17 agreed-upon points include institutional evaluations of the LPS, OJK, and Bank Indonesia by the House of Representatives, the expansion of banking and Islamic banking business scopes, and the demutualization of stock exchanges. Other significant provisions address margin transfers in financial transactions, Danantara debt notes, insurance company resolutions, mandatory traffic accident insurance funds, and mineral and commodity exchanges.

Further key areas covered by the P2SK draft law involve regulations for crypto assets, the establishment of a task force to prevent and address online lending and gambling, the development of Indonesia's International Financial Center, measures for handling non-performing loans for SMEs, and provisions for investigation and prosecution in the financial services sector, including restorative justice mechanisms. The law also addresses the health of banks undergoing restructuring.

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The government agrees to have it continued in the second reading or decision-making of the P2SK Amendment Law at the plenary session of the DPR RI.