CELIOS released the report “Recommendations for Regulating the PPSK Bill to Facilitate the Development of the Carbon Market and Crypto Asset Industry” amid discussions on the Draft Law on Financial Sector Development and Strengthening (RUU PPSK). This omnibus law aims to integrate around 16 laws to create a national financial ecosystem that is adaptive, inclusive, and sustainable. However, some provisions run counter to the goals of efficiency and cross-sector collaboration, particularly regarding carbon and crypto asset regulation.
The main controversy stems from the placement of commodity regulation, which could lead to overlapping jurisdictions. Indonesia has significant potential in carbon trading, estimated at IDR 4,290 trillion per year. However, crypto assets—which have grown rapidly, with more than 15.57 million investors as of July 2022—are placed under Financial Sector Technology Innovation (ITSK), overseen by Bank Indonesia and OJK, thereby removing Bappebti’s role.
The CELIOS report concludes that this regulatory overlap could create legal uncertainty and hinder the development of the crypto asset industry. Its main recommendation is to ensure strong coordination among OJK, BI, and Bappebti so that regulation is inclusive, sustainable, and supports the healthy growth of both the carbon market and the crypto asset industry.
CELIOS released the report “Recommendations for Regulating the PPSK Bill to Facilitate the Development of the Carbon Market and Crypto Asset Industry” amid discussions on the Draft Law on Financial Sector Development and Strengthening (RUU PPSK). This omnibus law aims to integrate around 16 laws to create a national financial ecosystem that is adaptive, inclusive, and sustainable. However, certain provisions contradict the goals of efficiency and cross-sector collaboration, particularly regarding the regulation of carbon and crypto assets.
The main controversy lies in the regulatory placement of these commodities, which could create overlapping jurisdictions. Indonesia has significant potential in the carbon market, estimated at IDR 4,290 trillion per year. Meanwhile, the rapidly growing crypto asset industry, with over 15.57 million investors as of July 2022, is placed under the Financial Technology Innovation (ITSK) framework regulated by Bank Indonesia and OJK, effectively removing Bappebti’s role.
CELIOS concludes that this regulatory overlap could create legal uncertainty and hinder the growth of the crypto asset industry. The report recommends strong coordination among OJK, BI, and Bappebti to ensure regulations are inclusive, sustainable, and supportive of both a healthy carbon market and a thriving crypto asset sector.
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