• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Conventus Law

Conventus Law

Conventus Law

  • About Us
  • Channels
    • Jurisdiction Channel
    • Practice Area Channel
    • Industry Channel
    • Business Of Law
    • Law Firms
    • Special Reports
  • Video
  • Events
  • Explore
  • Search
  • Membership
  • Conventus Doc
x
Search

More results...

Generic filters
Home » Special Report » New Law Overhauls The Financial Sector Regulations In Indonesia.

New Law Overhauls The Financial Sector Regulations In Indonesia.

March 31, 2023

March 31, 2023 by

Conventus Law: What impact has the new law had on Indonesia’s financial sector regulatory landscape?

Metalaw: The new law overhauls the financial sector regulations in Indonesia as it amended most of regulations concerning the financial sector, among others banking, capital market, insurance, financial technology, and currency law. 

Can you tell us about some of the key changes brought about by the new law?

The new law amends 16 laws concerning the financial sector in Indonesia. In addition to the amendment, the new law also regulates some new matters, among others the existence of digital rupiah and bullion activities in Indonesia. Another change that is also noteworthy is the transfer of supervising authority for the crypto-asset transaction. The crypto-assets were previously under the authority of the Commodity Futures Trading Regulatory Agency (“Bappebti”) but were repositioned to fall within Financial Services Authority (“OJK”) control. The New Law stipulates a two-year transition for the full transfer.

Finally, to incentivise the setting up of VCCs, MAS had introduced the VCC Grant Scheme, effective 16 January 2020, under which MAS would co-finance up to 70% of qualified expenditures paid to Singapore-based service providers up to a cap of S$150,000. The VCC Grant Scheme expired on 15 January 2023 and there has been no indication that it will be extended beyond this date.

“(…) the new law incorporates criminal sanctions for the violation of ITSK regulation”

What is the purpose of the new law?

The government states that the new law aims to encourage the contribution of the financial sector to be inclusive, sustainable and foster fair economic growth to improve people’s lives, reduce economic inequality, and realize a prosperous, advanced and dignified nation.

How will the new law impact financial technology companies in Indonesia?

In addition to the changing of the supervising authority of crypto assets, which may result in further amendments to crypto regulations under the OJK’s authorities, the new law also regulates Financial Sector Technology innovation (ITSK). This is not a new thing as this has been previously regulated under the OJK regulation and BI regulation, which was known as a regulatory sandbox. However, the new law incorporates criminal sanctions for the violation of ITSK regulation, i.e., operating ITSK activities without any license. These sanctions are aimed at shutting down the operation of unlicensed (illegal) financial technology companies.

“ (…) financial institutions and companies may face difficulties in implementing the regulations under the new law, especially if the new law does not provide a clear guideline on the implementation. ”

What are some of the potential challenges facing financial institutions and companies as a result of the new law?

Some of the regulations in the new law state that the implementation of the regulation will be further regulated under implementing regulations. Since the new law amends many laws and regulations, we believe it would take some time before the OJK can fully issue the implementing regulations. Therefore, financial institutions and companies may face difficulties in implementing the regulations under the new law, especially if the new law does not provide a clear guideline on the implementation. 

For Further Information, Please Contact:

MetaLAW, Legal Consultant, Jakarta, Indonesia

general@metalaw.id

Primary Sidebar

PRESS RELEASES

  • UK – Asset Based Finance Lawyer Tom Dell’Avvocato Joins Crowell & Moring In London. 17 September 2025
  • Crowell & Moring Lawyers Author Chapter In Global Arbitration Review’s The Guide To Construction Arbitration. 17 September 2025
  • Sidley Represents ChowChow Cloud In Its IPO And Listing On NYSE American. 17 September 2025
  • Sidley Represents PT J Resources Nusantara In Its Sale of PT Arafura Surya Alam for US$540 Million. 17 September 2025
  • Linklaters Advises On Alibaba’s Approximately US$3.2bn Zero-coupon Convertible Bond Issuance. 17 September 2025

NEWS FEED

    September 17, 2025

    Philippines – Written Deed Of Donation Essential For Subdivision Land Turnover To LGU.

    - Nilo T. Divina - DivinaLaw,
    September 17, 2025

    Driving Adoption Of Matter Management Software Across Legal Ecosystems.

    - Sacha Kirk - Lawcadia,
    September 17, 2025

    US – Senate Finance Committee Looking To Take White River To The Train Station, Confirms DOJ Investigation Into Tribal Tax Credits.

    September 17, 2025

    One Year After Illumina/Grail – How Are EU Competition Authorities Now Dealing With Below-Threshold Mergers.

    September 17, 2025

    Hong Kong – Employer’s Right To Enforce Restrictive Covenants Restraining Former Employee To Service Long Term Customer.

    - Angela Wang Poey Foon - Angela Wang & Co.,
    September 17, 2025

    GST 2025: A Brave New Chapter In India’s Tax Reform.

    September 16, 2025

    India – Loss Of Profits Vs. Loss Of Profitability In Construction Contracts: Navigating The Legal Maze For Accurate Claims.

    September 16, 2025

    India – Expert Witnesses In International Arbitration: Untangling Complexity Or Adding To The Cacophony?

    September 16, 2025

    From The Arabian Sea To The Strait Of Malacca: Forging The India-Singapore Axis.

    September 16, 2025

    India – Majority Stake, Minority Fate: Reverse Oppression Under The Companies Act, 2013.

Footer

Conventus Law
  • Linkedin
  • Twitter
  • Facebook

CONVENTUS LAW

  • About Us
  • Explore
  • Video
  • Events
  • Contact Us
  • Jurisdiction Channel
  • Practice Area Channel
  • Industry Channel
  • Law Firms
  • Business Of Law
  • Special Reports

OTHERS

CONVENTUS DOCS
CONVENTUS PEOPLE

3/f, 13/F, Two Harbourfront, 22 Tak Fung Street, Hunghom, Kowloon, Hong Kong

social@conventuslaw.com

Terms of use | Privacy statement © 2025 Conventus Law. All Rights Reserved.