The Indonesian Government has introduced the Omnibus Law for the financial sector, or Law No. 4 of 2023 on Financial Sector Development and Reinforcement ("PPSK Law"), to revamp the country's financial sector by amending 16 laws and revoking one law. Under the PPSK Law, there will be an introduction of financial instrument managers, such as a special purpose vehicle (SPV) or a trust fund manager (Trustee), which will carry out securitisation activities and manage a trust fund. It also expands the definition of securities to adapt to technological innovation, including securities-related derivatives and digital financial assets like crypto assets, and is regulated by the Financial Services Authority ("OJK").
The PPSK Law also extends the responsibility of parties that have obtained a licence, approval, or effective statement from OJK to cover their directors, commissioners, principal shareholder, controller, employees, and other parties working for them. Any director, commissioner, shareholder, and/or affiliate of the party is personally liable, whether jointly or severally, for losses suffered by the party, its customers, and/or its investors. Additionally, it mandates that there will be a single presence policy for securities companies, which will be regulated under a government regulation enacted within six months from the PPSK Law's enactment date.
For more information, click here to read our Legal Update.
