Jakarta (ANTARA) - The recently-passed Law on Financial Sector Development and Strengthening (UU P2SK) will boost the powers of the Financial Services Authority (OJK), which will see its scope of work increase significantly, Finance Minister Sri Mulyani Indrawati has said.

OJK is now authorized to oversee all aspects of financial services in the banking, stock market, retirement fund, financial technology, cryptocurrency, and cooperative sectors, she pointed out.

"We see that the OJK has been strengthened by new mandates (from UU P2SK) to manage new sectors emerging by technological advancements, such as cryptocurrency and saving-and-loan cooperatives," Indrawati said during a plenary session of the House of Representatives (DPR) at the Parliament Complex here on Thursday.

Integrated monitoring by OJK is a must to ensure that the development and enhancement of the financial sector take place thoroughly, she added.

One of the consequences of the law is the transfer of cryptocurrency regulation and supervision from the Trade Ministry's Commodity Futures Trading Supervisory Agency (Bappebti) to the OJK, Indrawati pointed out.

The transfer will ensure that digital finance regulation and supervision, particularly in the aspect of investor and consumer protection, is stronger, she said.

The government has acknowledged that a transition period is needed to ensure that the transfer can take place optimally without disrupting ongoing crypto transactions, she added.

Meanwhile, UU P2SK also provides a legal basis for the special purpose vehicle to encourage the development of new variants of financial market instruments through securitization, Indrawati said.

The law also pushes trust funds to provide more alternatives to asset management for market actors, she said.

Moreover, the law authorizes OJK to oversee and regulate cooperatives that are active in the financial services sector, the minister said, adding that the law also provides legal clarity to ensure customer protection.

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Translator: Astrid FH, Nabil Ihsan
Editor: Sri Haryati
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