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Illegal Entities Can Be Criminally Charged

Imposing criminal sanctions on illegal investment companies will create a deterrent effect and strengthen consumer protection.

By
BENEDIKTUS KRISNA YOGATAMA
· 4 minutes read

JAKARTA, KOMPAS — After Law No. 4/2023 on the Development and Strengthening of the Financial Sector (P2SK) was passed, illegal and unlicensed entities will be immediately subject to criminal sanctions. This update is expected to boost consumer protection and create a deterrent effect for perpetrators.

Financial Services Authority (OJK) chief executive Friderica Widyasari Dewi, who monitors the behavior of financial services businesses, education and consumer protection, said after the ratification of the P2SK Law that there have been significant changes in terms of eradicating illegal firms that offered financial services. They were deemed illegal because they were neither licensed nor registered with the OJK, the supervising authority and regulator of the financial services sector.

Among these changes is the strict prohibition on collecting, managing and distributing public funds to the community without permission from the OJK. This violation is punishable by a minimum of five years and a maximum of 10 years in prison. In addition, perpetrators will be subject to criminal sanctions of a minimum fine of Rp 1 billion and a maximum fine of Rp 1 trillion. This provision is stipulated in articles 237 and 305 of the P2SK Law.

Editor:
DEWI INDRIASTUTI
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