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Financial sector regulation in IndonesiaTopic
FieldFinancial regulation
JurisdictionIndonesia
Principal instrumentsUndang-Undang 4/2023 on the development and strengthening of the financial sector; Undang-Undang 21/2011 on the Financial Services Authority; Undang-Undang 8/1995 on the capital market; Undang-Undang 24/2004 on the Deposit Insurance Agency; Undang-Undang 9/2016 on financial system crises
Principal institutionsFinancial Services Authority (Otoritas Jasa Keuangan); Bank Indonesia; Deposit Insurance Agency (Lembaga Penjamin Simpanan); Financial System Stability Committee

Financial sector regulation in Indonesia is the body of Indonesian law that governs banks and sharia banks, the capital market and derivatives, insurance and other financial services, deposit insurance and bank resolution, the prevention and handling of financial system crises, the conduct of those who market financial products, and the insolvency of debtors. Its principal statute since 2023 is Undang-Undang 4/2023 on the development and strengthening of the financial sector, signed and promulgated on 12 January 2023, which used the omnibus method to amend the sector's statutes in a single law, among them the laws on the Financial Services Authority, Bank Indonesia, the Deposit Insurance Agency and financial system crises.[1][2][3]

Most of the field's detailed rules are made by the Financial Services Authority (Otoritas Jasa Keuangan, OJK), whose regulations (Peraturan OJK, POJK) are issued by its Board of Commissioners under the OJK law, Undang-Undang 21/2011, and the sectoral statutes, each as amended in 2023.[4][5] Government regulations implement the crisis and deposit insurance statutes, and the Constitutional Court reviews the sector's statutes against the Constitution.

The sections below survey the field by sub-field: the legal framework; banking and sharia banking; deposit insurance, bank resolution and crisis management; the capital market, derivatives and the carbon exchange; the conduct of those who communicate financial information to the public; and insolvency, including the Court's review in August 2026 of the two-creditor rule of the bankruptcy statute. CRPG's regulatory tracker reported the instruments surveyed here between July and September 2026.[6][7]

The preamble of Undang-Undang 4/2023 gives as its reasons the growing complexity of the financial services industry and the need to strengthen the framework for regulating and supervising financial institutions, and states that the new rules and adjustments are made by amending the sector's statutes with the omnibus method so as to bring them into one law.[1:1] Its chapter on institutions amends the laws on financial system crises, the Deposit Insurance Agency, the Financial Services Authority, Bank Indonesia and currency, and its preamble lists among its bases the banking, cooperatives, capital market and commodity futures laws.[2:1][1:2] The statute has 341 articles and entered into force on promulgation.[3:1]

The statute also brought new activities within the sector. Its chapter on technological innovation in the financial sector covers payment systems, capital raising, investment management, fund-raising and lending, and activities related to digital financial assets, including crypto, and its transitional provisions required the regulation and supervision of digital financial assets and of commodities that serve as financial instruments to pass from the commodity futures trading supervisory agency to the financial sector authority within 24 months.[8][9]

Banking and sharia banking

Sharia banking is governed by Undang-Undang 21/2008, signed and promulgated on 16 July 2008 and amended by the 2023 statute.[10][11] POJK 4/2026, which took effect on 29 April 2026, governs investment products offered by sharia commercial banks, sharia business units and sharia rural financing banks, in which the customer rather than the bank bears the investment risk. Its preamble explains it as a consequence of the 2023 amendment, which separated deposit products from investment products in sharia banking. It classifies the product as a restricted investment, fixes twelve basic features, including that losses are borne by the investor and that the investment is not guaranteed by the Deposit Insurance Agency, and gave banks already offering such products two years to conform.[11:1][12][13][14]

Deposit insurance, bank resolution and crisis management

The Deposit Insurance Agency (Lembaga Penjamin Simpanan, LPS) was established by Undang-Undang 24/2004, signed and promulgated on 22 September 2004.[15] As amended in 2023, the statute gives the agency five functions: guaranteeing depositors' savings, guaranteeing insurance policies, taking an active part in maintaining financial system stability, resolving banks, and settling the affairs of insurance companies whose business licences OJK has revoked.[16] Undang-Undang 9/2016 on the prevention and handling of financial system crises, of 15 April 2016, charges the Financial System Stability Committee with coordinating the monitoring and maintenance of financial system stability, handling financial system crises and handling the problems of systemic banks.[17][18]

PP 11/2026, signed and promulgated on 11 March 2026, implements provisions of the crisis statute as amended in 2023. It governs the placement of LPS funds in troubled banks, capped in total at 30 per cent of the agency's assets, and the Banking Restructuring Programme (Program Restrukturisasi Perbankan), which the President decides to run on the recommendation of the Financial System Stability Committee in a financial system crisis, and gives LPS the powers of a bank's organs together with resolution tools that include loss absorption, conversion of liabilities, temporary equity participation, bridge banks and liquidation.[19][20][21][22]

Capital market, derivatives and carbon exchange

The capital market statute, Undang-Undang 8/1995, was signed and promulgated on 10 November 1995 and amended by the 2023 statute.[23][5:1] POJK 3/2026, signed on 1 April 2026 and promulgated on 29 April 2026, governs the licensing and conduct of securities companies that act as underwriters and broker-dealers. It sorts them into three business-activity groups, each with its own permitted activities, minimum paid-up capital and adjusted net working capital, sets requirements on ownership and control, and revoked the OJK regulation of 2016 on the subject.[24][25][26]

POJK 9/2026, signed on 15 June 2026 and in force from 1 October 2026, requires incidental reports by parties in the capital market, derivatives and carbon exchange sectors to be filed through OJK's online reporting system, with rules on correction, system failures and force majeure backed by a common scale of administrative sanctions.[27][28][29] Trading on the carbon exchange is governed by an OJK regulation of 2023, which POJK 10/2026, in force from 6 July 2026, amended to align it with Peraturan Presiden 110/2025, the presidential regulation of October 2025 on carbon pricing instruments. The amendment moves the recording of exchange-traded carbon units to the carbon unit registry created by the presidential regulation and widens the classes of unit that may be traded; the subject is surveyed at carbon trading and climate regulation in Indonesia.[30][31][32]

Conduct of financial communication

POJK 6/2026, in force from 4 June 2026, sets standards of conduct for people and organisations outside the licensed sector who communicate information about financial products and services to the public. It creates the category of information communicator (Penyampai Informasi), classifies their activity as financial education, marketing or recommendation, and attaches separate disclosure duties to each. Marketing by a communicator must be done in cooperation with a licensed financial services business, which faces administrative sanctions of up to Rp15 billion for breaching its obligations; against communicators themselves OJK's tools are guidance, written orders and requests to the communications ministry to take down electronic content.[33][34][35][36]

Insolvency

Under Pasal 2 ayat (1) of Undang-Undang 37/2004 on bankruptcy and suspension of debt payment obligations, a debtor that has two or more creditors and fails to pay in full at least one debt that is due and payable is declared bankrupt by a court decision, on its own petition or on that of one or more of its creditors.[37] In Decision 266/PUU-XXIV/2026, pronounced on 12 August 2026, the Constitutional Court rejected a petition by a company that had been declared bankrupt, which asked the Court to rule that the assignor of a receivable and its assignee could not count as two creditors. The Court held that the provision does not distinguish original creditors from creditors by assignment (cessie), and that assignments engineered to manufacture a second creditor are a matter for the commercial court judge; the case is also surveyed at constitutional review in Indonesia.[38][39][40]

See also

Part of a series on Financial sector regulation in Indonesia
MK 201/PUU-XXIV/2026 · MK 246/PUU-XXIV/2026 · MK 266/PUU-XXIV/2026 · POJK 10/2026 · POJK 3/2026 · POJK 4/2026 · POJK 6/2026 · POJK 9/2026 · PP 11/2026
Identifiers Know ID K11
Categories Financial regulation in Indonesia
What links here (15)

References

  1. [P] Undang-Undang Nomor 4 Tahun 2023 tentang Pengembangan dan Penguatan Sektor Keuangan, preamble, Menimbang huruf b and c (the omnibus method) and Mengingat angka 2 to 5 (among them Undang-Undang Nomor 7 Tahun 1992 tentang Perbankan, Undang-Undang Nomor 25 Tahun 1992 tentang Perkoperasian, Undang-Undang Nomor 8 Tahun 1995 tentang Pasar Modal and Undang-Undang Nomor 32 Tahun 1997 tentang Perdagangan Berjangka Komoditi). regulation_id UU_4_2023. ↩︎ ↩︎ ↩︎

  2. [P] UU 4/2023, Pasal 5 huruf a to e (amending Undang-Undang Nomor 9 Tahun 2016, Undang-Undang Nomor 24 Tahun 2004, Undang-Undang Nomor 21 Tahun 2011, Undang-Undang Nomor 23 Tahun 1999 and Undang-Undang Nomor 7 Tahun 2011). regulation_id UU_4_2023. ↩︎ ↩︎

  3. [P] UU 4/2023, Pasal 341 (in force on promulgation) and closing formula (Disahkan di Jakarta pada tanggal 12 Januari 2023; Diundangkan di Jakarta pada tanggal 12 Januari 2023; Lembaran Negara Republik Indonesia Tahun 2023 Nomor 4; TLN 6845). regulation_id UU_4_2023. ↩︎ ↩︎

  4. [P] Undang-Undang Nomor 21 Tahun 2011 tentang Otoritas Jasa Keuangan, Lembaran Negara 2011 No. 111, TLN 5253, as cited in UU 4/2023, Pasal 5 huruf c. Cited for identity only; the CRPG regulation vault holds metadata only for this statute (regulation_id UU_2011_21). ↩︎

  5. [P] POJK 3/2026, preamble, Menimbang huruf a to c and Mengingat angka 1 and 2 (Undang-Undang Nomor 8 Tahun 1995 tentang Pasar Modal and Undang-Undang Nomor 21 Tahun 2011 tentang Otoritas Jasa Keuangan, each as amended by Undang-Undang Nomor 4 Tahun 2023). regulation_id POJK_3_2026. ↩︎ ↩︎

  6. [E] "Underwriter and Broker-Dealer Business Requirements: POJK 3/2026", CRPG regulatory tracker, crpg.id, 17 July 2026. https://crpg.id/underwriter-and-broker-dealer-business-requirements-pojk-3-2026/ The post carries a notice that it is AI-generated; it is cited for the record of the development, not for its legal content. ↩︎

  7. [E] "Constitutional Review of the Two-Creditor Bankruptcy Requirement: MK 266/PUU-XXIV/2026", CRPG regulatory tracker, crpg.id, 3 September 2026. https://crpg.id/constitutional-review-of-the-two-creditor-bankruptcy-requirement-mk-266-puu-xxiv-2026/ The post carries a notice that it is AI-generated; it is cited for the record of the development, not for its legal content. ↩︎

  8. [P] UU 4/2023, Pasal 213 (scope of Inovasi Teknologi Sektor Keuangan, including "aktivitas terkait aset keuangan digital, termasuk kripto"). regulation_id UU_4_2023. ↩︎

  9. [P] UU 4/2023, Pasal 312 ayat (1) and (2). regulation_id UU_4_2023. ↩︎

  10. [P] Undang-Undang Nomor 21 Tahun 2008 tentang Perbankan Syariah, closing formula (Disahkan di Jakarta pada tanggal 16 Juli 2008; Diundangkan di Jakarta pada tanggal 16 Juli 2008; Lembaran Negara Republik Indonesia Tahun 2008 Nomor 94). regulation_id UU_21_2008. ↩︎

  11. [P] POJK 4/2026, preamble, Menimbang huruf a to d and Mengingat angka 1 and 2 (Undang-Undang Nomor 21 Tahun 2008 tentang Perbankan Syariah and Undang-Undang Nomor 21 Tahun 2011 tentang Otoritas Jasa Keuangan, each as last amended by Undang-Undang Nomor 4 Tahun 2023). regulation_id POJK_4_2026. ↩︎ ↩︎

  12. [P] POJK 4/2026, Pasal 1 angka 1, 2, 4, 5, 7, 8, 9, 10 and 11, and Pasal 13; JDIH BPK: promulgated and in force 29 April 2026. regulation_id POJK_4_2026. https://peraturan.bpk.go.id/Details/350221/peraturan-ojk-no-4-tahun-2026 ↩︎

  13. [P] POJK 4/2026, Pasal 2 ayat (1) to (4) and Pasal 3 ayat (1) huruf a to l. regulation_id POJK_4_2026. ↩︎

  14. [P] POJK 4/2026, Pasal 12 huruf a and b. regulation_id POJK_4_2026. ↩︎

  15. [P] Undang-Undang Nomor 24 Tahun 2004 tentang Lembaga Penjamin Simpanan, closing formula (Disahkan di Jakarta pada tanggal 22 September 2004; Diundangkan di Jakarta pada tanggal 22 September 2004), Lembaran Negara 2004 No. 96, TLN 4420. regulation_id UU_24_2004. ↩︎

  16. [P] UU 4/2023, Pasal 7 angka 4 (amending Pasal 4 of Undang-Undang Nomor 24 Tahun 2004). regulation_id UU_4_2023. ↩︎

  17. [P] Undang-Undang Nomor 9 Tahun 2016 tentang Pencegahan dan Penanganan Krisis Sistem Keuangan, closing formula (Disahkan di Jakarta pada tanggal 15 April 2016; Diundangkan di Jakarta pada tanggal 15 April 2016; Lembaran Negara Republik Indonesia Tahun 2016 Nomor 70). regulation_id UU_9_2016. ↩︎

  18. [P] UU 9/2016, Pasal 5, in the 2016 text. regulation_id UU_9_2016. ↩︎

  19. [P] PP 11/2026, preamble, Menimbang (implementing Pasal 20B ayat (9), Pasal 20C ayat (4) and Pasal 41 ayat (4) of Undang-Undang Nomor 9 Tahun 2016, as amended by Undang-Undang Nomor 4 Tahun 2023), and closing formula (Ditetapkan di Jakarta pada tanggal 11 Maret 2026; Diundangkan di Jakarta pada tanggal 11 Maret 2026; Lembaran Negara Republik Indonesia Tahun 2026 Nomor 22). regulation_id PP_11_2026. ↩︎

  20. [P] PP 11/2026, Pasal 30 ayat (1) and (2). regulation_id PP_11_2026. ↩︎

  21. [P] PP 11/2026, Pasal 31 ayat (1) to (3), Pasal 32, Pasal 33 ayat (1) and Pasal 34 ayat (1) and (2). regulation_id PP_11_2026. ↩︎

  22. [P] PP 11/2026, Pasal 35 ayat (1), and Pasal 68 ayat (1) to (3), Pasal 69 ayat (1) to (6), Pasal 70, Pasal 71 and Pasal 72. regulation_id PP_11_2026. ↩︎

  23. [P] Undang-Undang Nomor 8 Tahun 1995 tentang Pasar Modal, closing formula (Disahkan di Jakarta pada tanggal 10 Nopember 1995; Diundangkan di Jakarta pada tanggal 10 Nopember 1995; Lembaran Negara Republik Indonesia Tahun 1995 Nomor 64). regulation_id UU_8_1995. ↩︎

  24. [P] POJK 3/2026, Pasal 4 and Pasal 5 ayat (1) to (3); JDIH BPK: enacted 1 April 2026, promulgated 29 April 2026. regulation_id POJK_3_2026. https://peraturan.bpk.go.id/Details/350257/peraturan-ojk-no-3-tahun-2026 ↩︎

  25. [P] POJK 3/2026, Pasal 19 to Pasal 23. regulation_id POJK_3_2026. ↩︎

  26. [P] POJK 3/2026, Pasal 103 huruf a to d. regulation_id POJK_3_2026. ↩︎

  27. [P] POJK 9/2026, Pasal 20 (mulai berlaku pada tanggal 1 Oktober 2026) and closing formula (Ditetapkan di Jakarta pada tanggal 15 Juni 2026). regulation_id POJK_9_2026. ↩︎

  28. [P] POJK 9/2026, Pasal 1 angka 3 to 5, Pasal 2 ayat (1) to (3), Pasal 3 ayat (1) to (3) and Pasal 4 ayat (1) to (5). regulation_id POJK_9_2026. ↩︎

  29. [P] POJK 9/2026, Pasal 5 to Pasal 15. regulation_id POJK_9_2026. ↩︎

  30. [P] POJK 10/2026, Menimbang huruf a and Mengingat angka 1 to 4; OJK, regulation page for POJK No. 10 Tahun 2026: enacted 2 July 2026, promulgated 6 July 2026. regulation_id POJK_10_2026. https://ojk.go.id/id/regulasi/Pages/POJK-10-Tahun-2026-Perubahan-Atas-POJK-14-Tahun-2023-tentang-Perdagangan-Karbon-Melalui-Bursa-Karbon.aspx ↩︎

  31. [P] POJK 10/2026, Pasal I angka 1 (Pasal 1 angka 2 to 5), angka 2 (Pasal 3 ayat (1) to (6)) and angka 3 (Pasal 5). regulation_id POJK_10_2026. ↩︎

  32. [P] Perpres 110/2025, closing formula (Ditetapkan di Jakarta pada tanggal 10 Oktober 2025; Diundangkan di Jakarta pada tanggal 10 Oktober 2025; Lembaran Negara 2025 No. 172). regulation_id PERPRES_110_2025. ↩︎

  33. [P] POJK 6/2026, Pasal 1 angka 2, 5 and 7, and Pasal 17; JDIH BPK: enacted 26 May 2026, promulgated and in force 4 June 2026. regulation_id POJK_6_2026. https://peraturan.bpk.go.id/Details/350502/peraturan-ojk-no-6-tahun-2026 ↩︎

  34. [P] POJK 6/2026, Pasal 2 huruf a to h and Pasal 5 ayat (1) to (3). regulation_id POJK_6_2026. ↩︎

  35. [P] POJK 6/2026, Pasal 7 ayat (1), (2) huruf a to h, (6), (7), (8) and (9). regulation_id POJK_6_2026. ↩︎

  36. [P] POJK 6/2026, Pasal 10 ayat (2), Pasal 11 ayat (1) to (3) and Pasal 12 ayat (1) to (4). regulation_id POJK_6_2026. ↩︎

  37. [P] Undang-Undang Nomor 37 Tahun 2004 tentang Kepailitan dan Penundaan Kewajiban Pembayaran Utang, Pasal 2 ayat (1). regulation_id UU_37_2004. ↩︎

  38. [P] Putusan MK Nomor 266/PUU-XXIV/2026, paragraph [3.5]: text of Pasal 2(1); the petitioner as a private legal entity; the assignment, the PKPU petition and the bankruptcy; standing accepted. https://s.mkri.id/public/content/persidangan/putusan/putusan_mkri_14802_1786521847.pdf ↩︎

  39. [P] Putusan MK Nomor 266/PUU-XXIV/2026, paragraphs [3.11.1] to [3.11.3]: the elements of cessie and of Pasal 2(1); engineered creditors a matter for the commercial court judge. https://s.mkri.id/public/content/persidangan/putusan/putusan_mkri_14802_1786521847.pdf ↩︎

  40. [P] Putusan MK Nomor 266/PUU-XXIV/2026, Amar Putusan: "Menolak permohonan Pemohon untuk seluruhnya"; pronounced 12 August 2026. Constitutional Court database record, case 266/PUU-XXIV/2026. https://s.mkri.id/public/content/persidangan/putusan/putusan_mkri_14802_1786521847.pdf ↩︎