Indonesia's Ministry of Finance published remarks by Finance Minister Purbaya Yudhi Sadewa at a Financial Forum backing changes to the Law on Development and Strengthening of the Financial Sector (P2SK), highlighting an expected expansion of mandates within the Financial System Stability Committee (KSSK) and closer fiscal-monetary coordination. The minister said the revision would broaden Bank Indonesia’s role beyond exchange-rate and price stability to include supporting economic growth, creating more overlap between fiscal and monetary policy discussions and enabling faster responses to changing economic conditions and financial-crisis risks. He also positioned P2SK as a layered financial safety net spanning the Financial Services Authority, Bank Indonesia, the Indonesia Deposit Insurance Corporation and the Ministry of Finance, with the updated framework expected to give the deposit insurer wider room to act more quickly if conditions deteriorate.
Ministry of Finance (Indonesia) 2025-12-03
Indonesia's Ministry of Finance endorses P2SK law revision expanding Bank Indonesia’s mandate to support economic growth
Indonesia's Ministry of Finance backs changes to the Law on Development and Strengthening of the Financial Sector (P2SK), aiming to expand the Financial System Stability Committee's mandates and enhance fiscal-monetary coordination. The revision broadens Bank Indonesia's role to support economic growth and improve crisis response. The updated framework positions P2SK as a financial safety net involving multiple authorities, allowing the deposit insurer to act swiftly in deteriorating conditions.