LEGAL EFFECTS OF IMPLEMENTING THE LAW ON DEVELOPMENT AND STRENGTHENING THE FINANCIAL SECTOR IN THE FINANCIAL SERVICES AUTHORITYS BUDGET AND REPORTING MECHANISM

The Financial Services Authority (OJK) is an institution that plays a strategic
role in the supervision and regulation of the financial services sector in
Indonesia. With the enactment of the Financial Sector Development and
Strengthening Law, there are fundamental changes in the budgeting mechanism
of the OJK. This study aims to determine the legal consequences of the
implementation of the P2SK Law on the budgeting and reporting mechanism of
the OJK. This research is a normative legal research using legal, conceptual and
comparative approaches. The results of this study show that after the enactment
of the Financial Sector Development and Strengthening Law, the integration of
the OJK budget into the state budget (APBN) requires the OJK to comply with
the provisions of the State Finance Law. These changes require OJK's financial
management and accountability to follow the same procedures as other state
institutions, including transparency, accountability and oversight by the Supreme
Audit Institution. This study concludes that following the enactment of the P2SK
Law, there has been a significant shift towards better governance and oversight,
ensuring that OJK's financial activities are better aligned with national fiscal
policy. This alignment strengthens the legal and institutional framework for
financial sector regulation in Indonesia.