OJK: Coordination Becomes a Challenge for the Implementation of the P2SK Law in the Capital Market

JAKARTA - Head of the Capital Market Licensing Department of the Financial Services Authority (OJK), Luthfy Zain Fuady, said that coordination with other stakeholders is a challenge for implementing the Financial Services Sector Development and Strengthening Law (UU P2SK) for the country's capital market industry.

In the Economic Outlook 2023 event, he explained the rules related to carbon stock trading plans must be coordinated with the Ministry of Environment and Forestry (KLHK).

"We have started to design how the carbon exchange will exist, the legal form, the working relationship with the technical ministries, how the carbon transaction will be settled and cleared", said Luthfy, quoted from Antara, Tuesday, February 14.

He continued, his party must coordinate with the Ministry of Energy and Mineral Resources (ESDM) which oversees sectors related to Climate Change Control (PPI) to immediately launch energy-based carbon unit products that can be traded.

"If the Ministry of Energy and Mineral Resources has prepared an instrument to be traded, then there must be a market immediately", said Luthfy.

Furthermore, his party must carry out coordination related to the development of derivative financial products with underlying financial assets in the capital market, the regulation and supervision of which is left to the OJK.

Previously, the authority for this financial product was under the Commodity Futures Trading Regulatory Agency (Bappebti), Ministry of Trade.

Then, OJK must coordinate with Bank Indonesia (BI) regarding Financial Sector Technology Innovation (ITSK), especially digital assets and crypto assets.

"We have to synergize with BI, which is also mandated in the PPSK Law. Now the arrangements are still scattered", said Luthfy.

Furthermore, his party must coordinate with law enforcement officials, especially the Indonesian National Police to enforce the law in the country's financial industry, especially the capital market.

"So we work together to position the OJK and Indonesian National Police in enforcing criminal law in the capital market sector", said Luthfy.

In addition, he said he would improve public investor protection through the development of the Securities Investor Protection Fund (SIPF).

"There are more efforts to provide guarantees and confidence in transactions in the capital market, so that the trading is more liquid, both in terms of frequency and volume", said Luthfy.

For information, the P2SK Law was ratified by President Joko Widodo to become Law (UU) Number 4 of 2023 (UU No.4/2023) on January 12, 2023.