Indonesia's Ministry of Finance announced that the government and the House of Representatives (DPR) have agreed the results of deliberations on a bill amending the 2023 Financial Sector Development and Strengthening Law, allowing it to proceed to a stage II decision in a DPR plenary session. The draft would strengthen the institutional framework for the Indonesia Deposit Insurance Corporation (LPS), the Financial Services Authority (OJK) and Bank Indonesia (BI), and revise rules for banking, Islamic finance, capital markets, insurance, crypto assets and support for micro, small and medium-sized enterprises. Key provisions include DPR performance evaluations of LPS, OJK and BI, greater flexibility for banks and Islamic banks to provide financing, and refined rules to provide protection and legal certainty for Islamic banking investment products. The bill would also allow demutualization of the Indonesia Stock Exchange by opening ownership beyond exchange members and would cover derivatives markets and crypto-asset regulation. Other provisions broaden the concept of a policyholder guarantee program, confirm compensation for road traffic accident victims under the mandatory road traffic accident compensation fund, expand bad debt write-off support for MSMEs, and provide for the establishment of an Indonesian International Financial Center. Separately, the government said it will establish a special task force involving ministries, agencies and law enforcement bodies to handle illegal online lending and online gambling. The amendment bill now moves to the stage II decision in the DPR plenary session.

Original source Back to tracker