Effectiveness of Law No. 21/2011 and OJK’s Challenges in the Digital Finance Era

Abstract

This study analyzes the effectiveness of the implementation of Law Number 21 of 2011 concerning the Financial Services Authority in strengthening financial sector supervision and consumer protection, while identifying key challenges and their urgency amid the dynamics of the digital economy. Using a normative juridical method with conceptual and statutory approaches, this research examines the practical effectiveness of the legal framework governing national financial supervision. The findings show that the implementation of the law has established an essential foundation for an integrated supervisory system; however, its execution still faces institutional capacity limitations, growing systemic risks, and insufficient levels of accountability and transparency. In addition, rapid advancements in financial technology have created a pressing need for digital-based supervisory mechanisms and adaptive regulations capable of responding to emerging market complexities. The urgency of strengthening governance, enhancing inter-institutional coordination, and improving consumer protection has become increasingly critical for ensuring financial system stability. These efforts are also necessary for reinforcing public trust in the national financial services sector in the modern era