Indonesia readies close-out netting after passing P2SK Law

Indonesia’s new omnibus law, introduced to regulate the financial sector, may pave the way for legal clarity on the enforceability of close-out netting for derivatives transactions in the country.

The Financial Sector Omnibus Law, or ‘P2SK Law’, enacted on January 12, is a sweeping reform that amends 17 laws in Indonesia’s financial sector, including those on banking, capital markets, insurance, futures trading and bankruptcy proceedings. Once regulators implement new rules reflecting the