The Philosophy Value of Banking's Control and Surveillance by Financial Service Authority

Abstract

The background of this research is related to banking regulation and supervision in Indonesia, which is currently divided macroprudential under the authority of the Financial Services Authority, and macroprudential is the authority of Bank Indonesia. This study aims to analyze and find the philosophical value of banking regulation and supervision by the Financial Services Authority using an analysis of legal ideals in the form of the importance of justice, the value of legal certainty, and the value of the benefit. This research uses normative legal research methods with statutory and conceptual approaches. The results of this study indicate that the division of regulation and supervision in a macroprudential manner is in the authority of the Financial Services Authority, and macroprudential is in the jurisdiction of Bank Indonesia that it does not fulfill the value of justice, legal certainty, and benefits. At the end of this study, the researcher provides recommendations to revise articles in the Law of the Republic of Indonesia Number 21 of 2011 concerning the Financial Services Authority, which contain conflicting norms and are ambiguous. The researcher also recommends the unification of banking regulation and supervision under the authority of Bank Indonesia, however strengthening data sharing and banking evaluation reports that can be accessed by the Financial Services Authority, as well as the realization of a blueprint for financial system stability and banking.