OJK Takes Control of Financial Derivatives Regulation: What You Need to Know About the 2025 Shift

Regulation of the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) No. 1 of 2025 on Financial Derivatives with Underlying Assets in the Form of Securities (“Regulation 1/2025”) has now ushered in the gradual transfer of authority over the regulation and supervision of financial derivatives from the Commodity Futures Trading Supervisory Agency (Badan Pengawas Perdagangan Berjangka Komoditi – “Bappebti”) to the OJK, a process that is mandated to be completed within 24 months.[1] This shift is intended to bring financial derivatives into line with the so-called “same activity, same risk, same regulation” principle that applies within the financial sector.[2]