The Bill on Development and Strengthening of the Financial Sector (RUU PPSK) is officially included in the priority bill in the 2023 national legislation program (Prolegnas) along with the ratiﬁcation of the draft omnibus law on the ﬁnancial sector at the DPR plenary meeting on 20 Last September 2022. This bill is crucial for Indonesia, where the role of the ﬁnancial sector is still minimal, both banking and non-banking.
The primary role of the ﬁnancial system is to create incentives for the efficient allocation of ﬁnancial and natural resources across all sectors of the economy across time and location. A well-functioning ﬁnancial system will promote investment by identifying and ﬁnancing projects with the highest rates of return, mobilizing savings, allowing diversiﬁcation and risk mitigation, and facilitating the exchange of goods and services. The functions carried out by this ﬁnancial system will lead to the efficient allocation of resources, rapid accumulation of physical and human capital, and faster technological progress, which in turn will promote economic growth and development.