Indonesian House Passes Revision to Strengthen Financial Sector Law

The Indonesian House of Representatives has officially ratified the revision of Law Number 4 of 2024 on the Development and Strengthening of the Financial Sector (P2SK). This legislative milestone occurred during a plenary session on Thursday, June 4, 2026.

The revision, spearheaded by the House's Special Committee (Panja) led by Mohamad Hekal, incorporated input from various stakeholders, including Bank Indonesia, the Financial Services Authority (OJK), the Deposit Insurance Corporation (LPS), state-owned banks, and national banks. Hekal reported that the committee reviewed the government's inventory of issues, resulting in a draft that amends nine existing financial sector laws.

"The P2SK Law Revision is expected to be a comprehensive step in strengthening and creating harmony in the financial sector's regulatory framework, as well as enhancing synergy and coordination among institutions in maintaining national financial system stability," Hekal stated at the DPR building. The revised law comprises two Roman numeral articles and 105 amended points.

Minister of Finance Purbaya Yudhi Sadewa, representing the government, emphasized the need for breakthroughs in various sectors, including finance, to support the Indonesian economy. He echoed Hekal's sentiment, calling the P2SK revision a strategic move to bolster the financial sector's regulatory alignment and institutional cooperation for national financial stability. The law's key provisions cover institutional structures of LPS, OJK, and Bank Indonesia, performance evaluations by the DPR, expanded banking business scopes, demutualization of stock exchanges, and regulations for crypto assets, among other financial matters.