Harmonization of Authority in the Investigation of the Financial Services Sector in Indonesia

Abstract

The rapid growth of the financial services sector in Indonesia demonstrates its strategic role in the national economy. However, harmonizing investigative authorities in this sector poses a challenge that needs to be addressed to maintain stability and public trust. This paper aims to investigate the issue of harmonizing investigative authorities in the Indonesian financial services sector, focusing on regulatory frameworks, case developments, and potential harmonization models. The evolution of investigative authority regulations in the financial services sector is outlined, identifying weaknesses in the system that need to be addressed. Case studies provide a concrete overview of the challenges faced in field investigations. A harmonization model for investigative authorities is proposed as a solution to enhance the effectiveness and efficiency of investigations. Under this harmonization model, OJK investigators are not the sole authority to conduct investigations in the financial services sector, but their authority must be elaborated with that of the POLRI or PPNS investigators as regulated in the Criminal Procedure Code (KUHAP). Article 49 paragraph (5) of Law No. 4 of 2023 concerning Financial Services Sector (P2SK Law), which essentially states that criminal investigations in the financial services sector can only be conducted by OJK investigators through a harmonization model of investigative authority in the financial services sector in Indonesia, should be elaborated so that investigative authority in the financial services sector can be carried out by POLRI or PPNS with the assistance of OJK investigators.