In a notable move to streamline financial oversight, Indonesia’s Financial Services Authority (OJK) is set to introduce new regulations governing financial derivatives tied to securities. This progress follows the recent transfer of regulatory responsibilities for digital financial assets, including crypto assets, from the Commodity Futures Trading Supervisory Agency (Bappebti) to the OJK and Bank Indonesia (BI).
During a virtual press conference held in Jakarta,Mahendra Siregar,Chairman of the OJK Board of Commissioners,announced,”we will soon issue POJK Number 1 of 2025 concerning financial derivatives with underlying assets in the form of securities. This regulation is currently undergoing the administrative process of promulgation.”
The transition of duties, which officially took place on January 10, 2025, marks a pivotal moment in Indonesia’s financial regulatory landscape. The OJK has already laid the groundwork with POJK number 27 of 2024, which addresses the trading of digital financial assets, including crypto assets. Additionally, the OJK Circular Letter Number 20/SEOJK.07/2024 provides further guidance on the implementation of these trading activities.
Beyond digital assets, the OJK has also taken on the regulation of financial derivatives linked to securities such as stock indices and foreign single stocks. Meanwhile, oversight of derivatives tied to money market and foreign exchange market instruments (PUVA) has been assigned to BI.To this end, BI has introduced BI Regulation Number 6 of 2024, which outlines the regulatory framework for these markets.
To support these new responsibilities, the OJK has developed a digital licensing system through the Integrated Licensing and registration System (SPRINT). This system is designed to streamline the approval process for digital financial assets and financial derivatives, ensuring a seamless transition and robust oversight.
Mahendra emphasized the collaborative efforts between the OJK and Bappebti, stating, “We are committed to fostering the growth and strengthening of the financial derivatives ecosystem in alignment with our respective mandates.”
In addition to these regulatory advancements, the OJK has expanded its scope under the P2SK Law to include new industries and products previously outside its jurisdiction. For instance,the OJK recently received a list of open loop cooperatives from the Ministry of Cooperatives,which will now fall under its regulatory purview. Mahendra highlighted this development, noting, “Our commitment is reflected in the issuance of POJK No. 47 of 2024, which governs cooperatives in the financial services sector, or KSJK.”
further expanding its mandate, the OJK has granted a financial services institution (LJK) permission to engage in bullion trading. This move underscores the OJK’s extensive approach to licensing, supervision, and consumer protection, leveraging existing regulatory frameworks.
Looking ahead, the OJK plans to establish a regulatory and supervisory regime for financial conglomerate holding companies, as outlined in POJK No. 30 of 2024. According to Mahendra, this initiative aims to bring Indonesia’s financial oversight in line with global standards. “The challenge now is to operationalize and implement these mandates effectively, ensuring they deliver maximum benefits for the financial services sector and the national economy,” he concluded.
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What is the impact of POJK Number 1 of 2025, which focuses on financial derivatives tied to securities, on Indonesia’s financial markets?
Interview with Dr. Amelia hartono, Financial regulation Expert and Former advisor to the OJK
Archyde News editor: Good afternoon, Dr. Hartono. Thank you for joining us today. Indonesia’s financial regulatory landscape has undergone meaningful changes recently, particularly with the transfer of oversight for digital assets and the introduction of new regulations for financial derivatives. Can you provide some context on why these changes are happening now?
Dr. Amelia Hartono: Thank you for having me. The changes we’re seeing are part of a broader effort to modernize and streamline Indonesia’s financial regulatory framework. The rapid growth of digital assets, including cryptocurrencies, has created a need for more robust oversight. Previously, these assets fell under the Commodity futures Trading Supervisory Agency (bappebti), but their complexity and integration into the broader financial system necessitated a shift to the OJK and Bank Indonesia (BI).This move ensures that digital assets are regulated alongside conventional financial instruments, promoting consistency and reducing systemic risks.
Archyde News Editor: The OJK recently issued POJK Number 27 of 2024 and SEOJK Number 20 of 2024 to regulate digital financial assets. How do these regulations address the challenges posed by crypto assets?
Dr. Amelia Hartono: POJK number 27 of 2024 is a foundational regulation that establishes a clear framework for the trading of digital financial assets, including cryptocurrencies. It sets out licensing requirements, operational standards, and consumer protection measures. SEOJK Number 20 of 2024 complements this by providing detailed guidance on implementation, such as reporting requirements and risk management practices. Together, these regulations aim to create a safer and more clear surroundings for investors while fostering innovation in the digital asset space.
Archyde News Editor: The OJK is also preparing POJK Number 1 of 2025, which focuses on financial derivatives tied to securities. What impact will this have on Indonesia’s financial markets?
Dr. Amelia Hartono: POJK Number 1 of 2025 is a significant step forward. Financial derivatives, such as those linked to stock indices and foreign single stocks, are complex instruments that can amplify both gains and losses. By introducing a dedicated regulation, the OJK is ensuring that these products are traded in a transparent and well-regulated manner. This will enhance market stability, protect investors, and potentially attract more foreign investment as confidence in Indonesia’s regulatory framework grows.
Archyde News Editor: Bank Indonesia has also taken on oversight of derivatives tied to money market and foreign exchange instruments through BI Regulation Number 6 of 2024. How does this division of responsibilities between the OJK and BI work?
Dr. Amelia Hartono: The division of responsibilities is logical and efficient. The OJK focuses on derivatives linked to securities, which align with its mandate to oversee capital markets. Simultaneously occurring, BI’s expertise in monetary policy and foreign exchange makes it the natural choice to regulate derivatives tied to money market and foreign exchange instruments. This separation ensures that each regulator can apply its specialized knowledge to the relevant instruments, leading to more effective oversight.
Archyde News Editor: What challenges do you foresee in implementing these new regulations, and how can thay be addressed?
Dr. Amelia Hartono: One of the main challenges will be ensuring compliance across the board, particularly from smaller market participants who may lack the resources to adapt quickly. Education and outreach will be crucial. The OJK and BI should work closely with industry stakeholders to provide clear guidance and support during the transition. Additionally, ongoing monitoring and enforcement will be essential to maintain market integrity and prevent regulatory arbitrage.
Archyde news Editor: what long-term benefits do you expect from these regulatory changes?
Dr.Amelia Hartono: In the long term, these changes will strengthen Indonesia’s financial system by promoting transparency, stability, and investor confidence. They will also position Indonesia as a forward-thinking jurisdiction that embraces innovation while managing risks effectively. This balanced approach will not only protect consumers but also attract global investors and businesses, contributing to the country’s economic growth.
Archyde News Editor: Thank you, Dr. Hartono, for yoru insights. It’s clear that these regulatory changes mark a pivotal moment for Indonesia’s financial sector, and we look forward to seeing their positive impact unfold.
Dr. Amelia Hartono: Thank you. It’s an exciting time for Indonesia’s financial markets, and I’m optimistic about the future.
