On 10 January 2025, the Financial Services Authority of Indonesia (Otoritas Jasa Keuangan or “OJK”) issued Regulation No. 1 of 2025 on Financial Derivatives with Underlying Securities (“POJK 1/2025”). This regulation revokes and replaces OJK Regulation No. 32/POJK.04/2020 on Securities Derivative Contracts and marks a key milestone in the ongoing reform of Indonesia’s financial sector.
POJK 1/2025 introduces a comprehensive regulatory framework for derivatives with securities as underlying assets, covering general provisions, product approval, market licensing, infrastructure requirements, reporting, supervision, and consumer protection.
A major shift under this regulation is the formal transfer of regulatory authority over securities-based derivatives from the Commodity Futures Trading Supervisory Agency (Bappebti) to OJK. As a result, OJK now holds full oversight over both the products and the infrastructure where the underlying asset is a security.
The regulation also expands the scope of covered instruments, which now include futures contracts, sharia-compliant derivatives, and other instruments based on listed stock indices, individual or baskets of listed securities, government securities, foreign indices, and foreign equities. OJK may also designate additional products that fall within this category.
All such derivatives must receive prior approval from OJK before being offered or traded. Applications must be jointly submitted by trading venues and clearing institutions, and—where applicable—settlement or custody service providers, especially if settlement involves the delivery of the underlying securities.
This regulatory update is expected to enhance market integrity, strengthen investor protection, and align Indonesia’s derivatives oversight with international standards.