Guarding society: The call to regulate financial planners in Indonesia – Mon, August 7 2023

Indonesia has witnessed a surge in the number of financial planners offering their services to the public. While these professionals play an important role in helping individuals achieve their financial goals, in some cases they have had detrimental effects to consumers.

This article aims to shed light on the urgency to regulate the financial planner industry in Indonesia, beginning with a closer examination of cases in which their practices have caused harm. Subsequently, we will explore the legal vacuum in this area and the necessity for a clear separation of duties and authorities between the Financial Services Authority (OJK) and the Finance Ministry’s Financial Professional Development Centre (P2PK), both of which are instrumental in safeguarding the financial sector.

Over the last few years there have been numerous cases of financial planners engaging in fraudulent and deceptive practices. These unscrupulous individuals often exploit unsuspecting clients, promising unrealistic returns on investments or selling unsuitable financial products to maximize their commissions. Such actions have led to significant financial losses for innocent individuals, jeopardizing their financial security and future.