Mukhamad Misbakhun: Revision of the P2SK Law Strengthens the Stability of the National Financial System

Chairman of Commission XI of the Indonesian House of Representatives, Mukhamad Misbakhun, said the enactment of the Draft Law on Amendments to Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK) is an important step to strengthen the foundation of the national financial sector.

According to him, the revision of the law is crucial in the midst of changing economic dynamics and financial industry developments.

"Through this change to the P2SK Law, we want to ensure that the national financial sector has an increasingly strong legal foundation so that it is better prepared to face various risks and challenges in the future," said Misbakh in his statement in Jakarta, Friday.

He explained that pressure on the rupiah exchange rate, financial market volatility, and rapid digital transformation show the importance of Indonesia having a strong, adaptive, and capable financial sector legal framework that provides certainty for all stakeholders.

"One of the important substances accommodated in the amendment to the P2SK Law, he said, is the alignment of a number of norms in accordance with the Constitutional Court's decision, including regarding the authority to investigate criminal offenses in the financial services sector involving the Financial Services Authority (OJK) and the National Police.

In addition to providing legal certainty, he continued, the change in the law also strengthens the framework for risk mitigation and crisis management to maintain the resilience of the national financial system.

This step is important because the turmoil in the financial sector can have a direct impact on the national economy and the country's fiscal space.

"We want the risk to be anticipated earlier so that it does not become a greater burden on the state budget," he emphasized.

He said the development of financial technology was one of the main considerations of the DPR in approving changes to the P2SK Law. Various new instruments and business models, ranging from assetkriptohinggatokenisasi (RealWorldAssets/RWA), are developing much faster than the regulatory framework that was previously available.

Through this change to the law, the DPR encourages the creation of legal certainty for industry players as well as stronger protection for the public as users of financial services.

Misbakhun also explained that strengthening governance, transparency, and modernization of the financial sector is also an important part of the changes to the P2SK Law, including to support the development of the Indonesian International Financial Center and improve the competitiveness of the national financial sector.

"If Indonesia wants to become a competitive financial center, then trust must be built through strong governance and legal certainty," said Misbakhun.

Previously, on Thursday (4/6), the DPR RI Plenary Meeting approved the Draft Law (RUU) Amendment to Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK) was enacted into law.