Indonesia introduces a new law on the Financial Services Authority

Hamud M Balfas, hbalfas@abnrlaw.com.

The Indonesian Parliament in its session on 28 October 2011 finally passed the long awaited bill to set up the Financial Services Authority. The Bill was then signed by the President on 22 November 2011 to become Law No 21/2011 (‘Law No 21’). The Law was enacted to implement Law No 23/1999 (as amended) regarding Bank Indonesia (the central bank, ‘Law No 23’) which instructed the government to establish an agency that will conduct supervision of the financial services industry in the country.