Legal Uncertainties Lurk in Indonesia's P2SK Law, Experts Warn

Concerns are being raised regarding legal uncertainties within Indonesia's Financial Sector Development Law (UU P2SK), which was publicly announced on September 1, 2026. This law is a comprehensive piece of legislation set to impact the entire Indonesian financial sector, and voices of concern are growing among experts and stakeholders ahead of its implementation. The UU P2SK was enacted with the aim of stabilizing the financial system, promoting innovation, and strengthening consumer protection. However, some of its articles are seen as having significant room for interpretation or presenting challenges in their consistency with existing legal frameworks. Specifically, points such as regulations concerning new financial products and services, responses to new risks arising from the development of digital finance, and the scope of authority for supervisory bodies are noted as being unclear in their specific operational guidelines. Indonesia has recently seen rapid digitalization and advancements in financial inclusion. Concurrently, challenges related to cybersecurity and data privacy have also become apparent. While the UU P2SK is expected to be a crucial framework for adapting to this modern financial landscape, the legal ambiguity could potentially lead to new legal disputes or regulatory confusion. Experts emphasize the need for relevant ministries, financial institutions, and consumer groups to collaborate and expedite the development of detailed subordinate regulations and guidelines before the law's enforcement. This would help reduce legal uncertainties and ensure thorough preparation so that the UU P2SK can contribute to the healthy development of the financial sector as originally intended.