Continuing on from our first advisory on the P2SK Law, we delve deeper into its provisions with a specific focus on Chapter X, which covers finance services businesses. This chapter applies to a variety of entities involved in finance services, including those providing peer-to-peer lending services, and aligns with the P2SK Law's aim of promoting technological innovation in finance services while protecting consumers.   

The Indonesian government recently introduced a new omnibus law to regulate the financial sector. Law No. 4 of 2023 on Financial Sector Development and Reinforcement (Pengembangan dan Penguatan Sektor Keuangan – “P2SK Law”) was enacted on 12 January 2023. It amends 17 laws in the financial sector, including the Banking Law, Capital Market Law, Futures Trading Law, Sovereign Debt Instruments Law, Insurance Law, and Currency Law, as well as the laws on Bank Indonesia and the Financial Services Authority. The P2SK Law also regulates some ‘new’ financial products such as bullion, trust arrangements, digital assets, and a digital Rupiah.