Strengthening institutional characteristics of the financial sector supervisory authority, coordination amongst authorities involved in the financial sector (Bank Indonesia, OJK, and LPS), and strengthening investor and consumer protection are the main goals of the P2SK Law's.
Some general impacts of the P2SK Law:
Bank Perkreditan Rakyat which is renamed Bank Perekonomian Rakyat (Article 1 paragraph 6).
Sharia Unit that has changed its name to become a Sharia Commercial Bank (Article 1 paragraph 9).
Sharia Banks are entitled to conduct public offerings / IPOs through the Capital Market as long as they are not contrary to Sharia Principles and the provisions of laws and regulations. (Article 13).
BPR may conduct a public offering on the stock exchange under terms and conditions regulated by the Otoritas Jasa Keuangan (Article 23 paragraph 2).
Ease of access to financing to MSMEs (micro, small and medium), and arrangements regarding write-offs to support smooth access to financing; the provision of write-offs applies if optimal restructuring and collection efforts have been made but remain uncollectible (Article 250).
Determination of the existence of digital Rupiah managed by Bank Indonesia, Digital Rupiah has the same function as Kertas Rupiah and Logam Rupiah, which are legal payment instruments in the territory of the Republic of Indonesia. (Article 2)
P2SK also causes changes to 17 laws related to the financial sector, such as in the fields of banking, capital markets, insurance companies, sharia, financing and fintech.
Contact us if your company needs consultation regarding the impact of P2SK Law related changes.