Proposed changes to the Bank Indonesia law as a solution to the impact of the COVID-19 spread on banking in Indonesia

  • 449 Views
  • 225 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

Every amendment to the Bank Indonesia Law is caused by a situation that requires changes to the Law regulating the Central Bank in Indonesia as a solution. The spread of COVID-19 in Indonesia has also led to proposals to amend the Bank Indonesia Law. The purpose of the study is to find answers to the relevance of the proposed Amendment to Bank Indonesia Law to address the spread of COVID-19 to banking institutions in Indonesia. This type of research methods is normative legal research. In normative legal analysis, secondary data are used, consisting of primary and secondary legal materials. They are obtained from applicable regulations in Indonesia. The study results show that every change is always based on events that prove the weak implementation of existing rules with a regulatory and conceptual approach. The spread of COVID-19 is a situation, that has no practical basis and requires amendments to the Bank Indonesia Law as an alternative solution. Also, the proposed amendments are not yet relevant to address the impact of COVID-19 on banks because they have not yet realized and achieved the legal goals of providing benefits to the community.

Acknowledgment
Thanks to Universitas Atma Jaya Yogyakarta, Indonesia, for providing funding for research and publication.

view full abstract hide full abstract
    • Table 1. Number of institutions operating in the non-banking financial industry
    • Conceptualization
      Theresia Anita Christiani
    • Data curation
      Theresia Anita Christiani
    • Formal Analysis
      Theresia Anita Christiani
    • Funding acquisition
      Theresia Anita Christiani
    • Investigation
      Theresia Anita Christiani
    • Methodology
      Theresia Anita Christiani
    • Project administration
      Theresia Anita Christiani
    • Resources
      Theresia Anita Christiani
    • Supervision
      Theresia Anita Christiani
    • Validation
      Theresia Anita Christiani
    • Visualization
      Theresia Anita Christiani
    • Writing – original draft
      Theresia Anita Christiani
    • Writing – review & editing
      Theresia Anita Christiani