IDEAS home Printed from https://ideas.repec.org/a/vrs/mjsosc/v9y2018i4p225-233n22.html
   My bibliography  Save this article

Juridical Implication of Otoritas Jasa Keuangan Authority in Banking Supervision in Indonesia

Author

Listed:
  • Ratnaningsih

    (Univesitas Lumajang)

  • Khoidin Mohammad
  • Susanti Dyah Ochtorina

    (Universitas Jember)

Abstract

The law number 21 of 2011 on Otoritas Jasa Keuangan is the beginning of a new system implication on regulating and supervising the financial services sector in Indonesia. Initially, Indonesia implemented a model of supervision by several institutions to be an integrated supervision by single institution, i.e., Otoritas Jasa Keuangan. The application of Law of Otoritas Jasa Kauangan divides the authority of banking supervision into two ways, i.e., microprudential which is the authority of Otoritas Jasa Keuangan and macrprudential which is the authority of Bank Indonesia. The law does not give clear limits on the scope of the divisions, whereas both microprudetial and macroprudential are closely related. This division of authority may complicate Bank Indonesia to to carry out its duties as a central bank, therefore it need a synergy between Otoritas Jasa Keuangan and Bank Indonesia in Banking Supervision. This research aims at giving prescriptions on synergy model between Otoritas Jasa Keuangan and Bank Indonesia that can meet the principle of justice, legal certainty and expediency. The method used is normative juridical research by examining various laws and regulations and other literature studies. This research shows the needs of synchronization between the Law of Otoritas Jasa Keuangan and other related laws to omit overlaps of authority between Otoritas Jasa Keuangan and Bank Indonesia.

Suggested Citation

  • Ratnaningsih & Khoidin Mohammad & Susanti Dyah Ochtorina, 2018. "Juridical Implication of Otoritas Jasa Keuangan Authority in Banking Supervision in Indonesia," Mediterranean Journal of Social Sciences, Sciendo, vol. 9(4), pages 225-233, July.
  • Handle: RePEc:vrs:mjsosc:v:9:y:2018:i:4:p:225-233:n:22
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/mjss.2018.9.issue-4/mjss-2018-0131/mjss-2018-0131.xml?format=INT
    Download Restriction: no

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:mjsosc:v:9:y:2018:i:4:p:225-233:n:22. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla). General contact details of provider: https://www.sciendo.com/services/journals .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.