Indonesia's Financial Services Authority finalises transfer of securities-based financial derivatives oversight from Bappebti

Indonesia's Financial Services Authority (OJK) and the Commodity Futures Trading Regulatory Agency (Bappebti) signed an addendum to the handover minutes confirming that regulation and supervision of financial derivatives with securities as the underlying asset has fully moved from Bappebti to OJK. The addendum continues a transfer process launched on 10 January 2025 under the Law on the Development and Strengthening of the Financial Sector and extends OJK’s remit to include the forwarding of customer orders to overseas futures exchanges (PALN) where the underlying asset is securities. OJK noted it has been supervising these products through offsite monitoring based on regulatory reporting supported by an electronic reporting system, alongside onsite compliance inspections conducted jointly with Bappebti supervisors. Under OJK Regulation No. 15/2023 on the administration of know-your-customer services, Financial Derivatives Securities Broker Intermediaries (PPE DK) must create a Single Investor Identification for each investor or customer in securities-underlying financial derivatives to support portfolio-level supervision. Bappebti indicated it will continue cooperation with OJK, and the release also referenced a combined supervision mechanism by Bank Indonesia, OJK and Bappebti for certain commodity futures products, including indices, single stock and PALN. OJK and Bappebti indicated that joint work will continue, including staff assignments and internship programmes, to support the transition.