From the P2SK Law to its amendment

A combined analysis of the legal politics of financial services supervision under Laws No. 4 of 2023 and No. 4 of 2026

Abstrak

This study examines the legal politics of financial-services supervision in Indonesia across Law No. 21 of 2011 on the Financial Services Authority (OJK), Law No. 4 of 2023 on Financial Sector Development and Strengthening, and its 2026 amendment. Using normative legal research with statutory, conceptual, and case approaches, it analyzes Constitutional Court Decisions No. 59/PUU-XXI/2023 and No. 85/PUU-XXII/2024, legislative materials, and official supervisory reports. The analysis identifies three phases: institution-building in 2011; expansion of regulatory and enforcement powers in 2023; and recalibration in 2026 through shared investigative authority, sector-specific restorative justice, an expanded supervisory perimeter, and parliamentary performance evaluation. The article develops an accountable-independence framework drawing on international standards for financial supervisors. It argues that accountability is legitimate when it concerns transparent reporting, aggregate performance, governance, and use of resources, but becomes problematic when binding recommendations or prior legislative approval can influence technical supervisory decisions or individual enforcement cases. The constitutional position of Bank Indonesia requires separate consideration under Article 23D of the 1945 Constitution, while OJK’s institutional design must be read alongside its statutory mandate and the constitutional economic framework. OJK data for 2024 illustrate supervisory activity but do not establish a causal improvement attributable to the 2023 law because comparable pre-2023 time-series data were not analyzed. The study concludes that the 2026 amendment reflects both constitutional correction and broader policy choices extending beyond the judgments that prompted legislative action. Sustainable supervision therefore requires clear competence allocation, transparent and meaningful legislative processes, judicial review, and safeguards against political interference in individual technical decisions.