Financial Services Authority Regulation Research Articles

Regulatory Sandbox dan Implementasi pada Inovasi berbasis Financial Technology (Fintech)

Abstract. The development of financial innovation called "Financial Technology" has developed rapidly so far. Disruption to digital finance certainly needs to be regulated in such a way as to minimize risk and stabilize the state financial system. In an effort to regulate this innovation, regulators place limits on digital forms of finance that are widely used by the public. Today's society tends to have an instant, easy lifestyle, and use online transactions. In this era, digital finance is at the top of society, one of the most forms of fintech is application-based lending that brings together lenders and recipients/borrowers in one application. With digital financial innovation getting fast attention from competitors in the business world outside of banks, they tend to take advantage of the community and namely the rise of online loans. One of the efforts to mitigate risk by financial institutions is to issue a Regulatory Sandbox policy through Bank Indonesia Regulation Number PBI No.19/12/PBI/2017 of 2017 concerning the Implementation of Financial Technology and Financial Services Authority Regulation (POJK) Number 13/POJK.02/ 2018 of 2018 concerning Digital Financial Innovation in the Financial Services Sector (POJK 13/2018). This study intends to analyze the extent to which these regulatory issues have represented the needs of agencies and society. This legal research uses empirical legal research methods, which this research relies on applicable laws and regulations as well as other related literature. The results of this research are the ineffectiveness of current regulations among the public and regulators as well as the increasingly complex problems faced by financial institutions, especially in the field of banking.

Chief risk officer and audit fee: An investigation from financial industries in Indonesia

The appointment of a CRO (Chief Risk Officer) influences the implementation of ERM (Enterprise Risk Management), which reduces risk and lowers audit costs. Financial Services Authority Regulation No.17/2014 in Indonesia requires companies to have an RMC (Risk Management Committee), which is different from a CRO equivalent to a C-Level. This study examines the impact of a CRO on external audit costs. The data consists of financial companies listed on the Indonesia Stock Exchange (IDX) from 2011 to 2020. The results show that companies using a CRO have lower risk, thereby reducing audit costs. Additionally, the expertise of a CRO also impacts a higher ERM, which in turn affects the reduction of audit costs. This study contributes to the practical world by supporting the appointment of a CRO to reduce company risk. Thus, the company can deliver better performance.

PERLINDUNGAN HUKUM BAGI NASABAH PADA PINJAMAN ONLINE MENURUT HUKUM EKONOMI SYARIAH

This article aims to examine the legal protection for customers in the implementation of online-based money loans or known as online loans (pinjol). The research method used is a doctrinal approach where the author will examine legal norms related to customer protection according to the Banking Law, and a number of Financial Services Authority (OJK) regulations related to pinjol. The results of this study conclude that there are several phenomena that occur in the implementation of pinjol that do not get legal protection for customers, namely: First, the determination of interest that does not refer to the interest rate provisions of Bank Indonesia, second, the maximum interest setting on online loans in fintech companies is 0.4 percent per day but the amount of real interest is not regulated in the agreement. Third, Financial Services Authority Regulation No.77/POJK.01/2016 on Information Technology-Based Money Lending and Borrowing Services OJK Regulation No.77 of 2016 is the basis for the implementation of Peer to Peer Lending business activities or online lending and borrowing which is one of the types of fintech, including the protection of customer personal data. Customer personal data collected by fintech providers must be kept confidential in accordance with applicable privacy provisions.

Optimization of Consumer Protection and Increase of Virtual Currency Trading in Indonesia: A Study on Financial Services Authority Regulation

This study aims to normatively analyze OJK Regulation Number 3 of 2024, focusing on consumer protection in the context of the increasing trade in virtual currency in Indonesia. This study uses a normative legal research method. The collected legal material is then qualitatively analyzed to describe the problem and answer the study objectives. The results show that OJK Regulation Number 3 of 2024 is crucial in optimizing consumer protection and increasing virtual currency trading in Indonesia. Through the general provisions in OJK Regulation Number 3 of 2024, which cover consumer protection and the sandbox mechanism, the regulation supports responsible testing and development of FinTech innovations. The practical implementation of OJK Regulation Number 3 of 2024, emphasizing personal data protection and transparency, adds a layer of consumer protection. Overall, OJK Regulation Number 3 of 2024 creates an environment conducive to safe and regulated virtual currency trading, enhancing investor and consumer confidence in the Indonesian FinTech ecosystem. Therefore, it is recommended that the government and OJK, FinTech innovators and virtual currency traders, as well as consumers and investors, take strategic steps to enhance consumer protection and optimize virtual currency trading in Indonesia. The Government and OJK need to ensure the effective implementation of OJK Regulation Number 3 of 2024 through widespread socialization, strict supervision, and firm law enforcement against violations. FinTech innovators and virtual currency traders should develop robust risk management systems, enhance operational transparency, and ensure compliance with personal data protection provisions. Consumers and investors are advised to improve their digital financial literacy, critically assess investment risks, and interact only with platforms and service providers that have been verified and comply with OJK regulations. The collaboration between regulators, the industry, and the community will create a safer, more transparent, and sustainable virtual currency trading ecosystem, supporting the growth of the FinTech sector in Indonesia while minimizing potential risks for consumers and investors.

Indonesia Insurance Corporate Governance: A Literature Review

The aim of this research is to present and evaluate corporate governance framework for insurance companies in Indonesia based on previous researches related to corporate governance and The Indonesia Financial Services Authority Regulation. We evaluate concerning to governance objectives that include protecting shareholder interests, enhancing shareholder value, ensuring accountability, managing risk, promoting ethical behavior, transparency and disclosure, balancing interests, strategic decision-making, compliance with laws and regulations, efficient operations, long-term sustainability, stakeholder engagement, adapting to change, creating a positive reputation, and facilitating investment. We discuss the corporate governance framework for insurance companies in Indonesia based on the Indonesia Financial Services Authority regulation that states governance structure, corporate governance code, self-assessment & governance report, governance process and corporate governance principles to meet governance objectives. Although every year all insurance companies report corporate governance, but some companies have been stopped by the Authority. This raises research problems for the future relating to why insurance companies that have complied with corporate governance provisions have been stopped by the Authority.

Bentuk Perlindungan Hukum Penyelesaian Sengketa Pinjaman Online di Indonesia (Suatu Pendekatan Norma Hukum)

The research aims to explore and analyze legal protection for parties in online loan transaction disputes and alternative dispute resolution through online loan application service networks. The type of research is normative legal research (normative research) using a statutory approach, a conceptual approach, analysis of legal materials is carried out by interpreting and assessing related laws and regulations and selecting relevant legal materials. The research results show that legal protection for parties in transaction disputes through the online loan application service network must be based on an agreement based on mutual agreement with the legal online loan provider and a dispute resolution institution must be determined in the initial agreement, carrying out legal enforcement for unlawful acts committed by the provider. and provide, in principle, this protection to protect the rights of debtors as consumers, resolving disputes in online loan transactions for technology-based loan actors because borrowers still do not know in detail the dispute resolution mechanism, Financial Services Authority Regulation Number 77/POJK. 01/2016 Article 29 letter e only regulates the principle of dispute resolution which is carried out simply, quickly and at low cost, the parties can freely choose a dispute resolution institution that has been recommended by the Financial Services Authority.

Evaluation of The Implementation of POJK No.4/POJK.03/2015 Concerning The Implementation of Governance for Rural Banks at PT. BPR Dana Multi Guna

Good corporate governance or GCG is an important component for all types of businesses, especially rural banks (BPR). The main objective of GCG is to safeguard the interests of stakeholders, increase productivity in the organization, and minimize risks. Financial Services Authority Regulation (POJK) No. 4/POJK.03/2015 concerning the Implementation of Governance for Rural Banks was issued by the Financial Services Authority (OJK) in 2015. The application of GCG principles in BPR, including elements of transparency, accountability, responsibility, independence, and justice, is strictly regulated in this POJK. According to this law, BPR must apply governance principles in every aspect of its business, at every level of the organization. The purpose of this study is to evaluate the extent to which rural banks (BPR) have complied with POJK No. 4/POJK.03/2015, especially related to the duties and obligations of the Board of Directors and Board of Commissioners. The purpose of this study is to collect information about the BPR governance process through interviews with PT. BPR Dana Multi Guna. After that, the data is checked and compared with related regulations to see if they are complied with. The evaluation findings show that PT. BPR Dana Multi Guna has fulfilled all directives of the Financial Services Authority regarding governance as outlined in POJK No. 4/POJK.03/2015. However, the study also reveals that rural banks should be more committed to implementing good governance and raising awareness of it. This is important so that BPR can improve performance, reduce potential risks, and safeguard the interests of stakeholders effectively.

Juridical Review of the Strength of Electronic Evidence To Proof Online Lending Agreement

<p><em>Online lending is a financial service provider for the community, with the granting of this online financial service license, it is hoped that the community, whose economy has been affected and has experienced setbacks during the Covid-19 pandemic, can be helped again to carry out their business activities. When viewed from the practical side, online loans are very helpful and make it easy for people to borrow money. Unlike banks or pawnshops that require a lot of administrative requirements and also collateral or collateral. The research in writing this scientific work is normative juridical research. Normative juridical research is research that examines the application of legal rules and norms related to the topic discussed. The nature of this research is descriptive, namely research that analyzes a legal regulation. All electronic documents in online lending and borrowing agreements that are affixed with valid electronic signatures and also carried out in accordance with the standard provisions stipulated in the Civil Code, ITE Law, and Financial Services Authority Regulations, are valid and strong as electronic evidence and have the same position as letter evidence. Therefore, every online lending and borrowing agreement in which the customer defaults, can file a lawsuit for default to the district court with initial evidence in the form of electronic documents.</em></p>

THE URGENCY OF STANDARDIZING THE OPEN APPLICATION PROGRAMMING INTERFACE IN IMPLEMENTATION OF OPEN BANKING FOR CUSTOMER PROTECTION

Open banking with Open Application Programming Interface (open API) technology is an initiative aimed at streamlining the payment system in Indonesia. The open API allows banks to integrate their systems with digital financial service providers (fintech) and bold trade (e-commerce) providers by disclosing customer transaction data. This study investigates the urgency of open API standardization in implementing open banking in Indonesia. This study uses a normative juridical approach to secondary data. The data includes primary, secondary, and tertiary legal materials. In addition, it also uses qualitative normative data analysis methods. It was concluded that before the National Open API Payment Standard (SNAP) stipulation, the process of sharing data between banks and fintech and/or e-commerce still needed to be standardized but was only based on an agreement between the parties. Banking in Indonesia has various open API standards that can affect the protection of customer data. According to the Financial Services Authority Regulation Number 12/POJK.03/2018, the relationship between banks, fintech, and/or e-commerce in providing digital banking services based on agreements between parties needs to be stronger. OJK is indeed present as a supervisory agency. However, the parties will eventually come back to a deal between themselves. Unlike the Regulations of the Financial Services Authority, the Regulations of the Members of the Board of Governors, which form the legal basis for SNAP, provide standards that must be complied with by both service providers and service users. However, implementing SNAP-based open APIs still requires personal data protection regulations.

LEGAL FRAMEWORK FOR PROTECTING BANKING TRANSACTIONS IN THE METAVERSE AGAINST DEEPFAKE TECHNOLOGY

Backgorund: In the virtual world of the metaverse, various activities such as banking transactions and blockchain, despite their positive impacts, are not immune to the risks of financial cybercrime, including the use of artificial intelligence deepfake technology. This technology can create seemingly authentic audiovisual content from individuals or customers, leading to data theft, money laundering, and other financial crimes. This research aims to analyze the legal framework governing banking transactions in the metaverse and blockchain, as well as the legal regulations addressing the protection against financial cybercrimes involving deepfake technology. Methods: This research employs the doctrinal legal research method. The approach utilized includes the legislative approach (statute approach), conceptual approach, and comparative approach. It also utilizes primary data sources such as laws and secondary data sources like books, journals, and internet resources related to banking transactions in the metaverse and deepfake technology. Results: The analysis results indicate that the Information and Electronic Transactions Law (UU ITE) and the Financial Services Authority (OJK) regulations in Indonesia do not specifically address banking transactions in the metaverse and blockchain. Additionally, the Personal Data Protection Law and regulations related to crimes involving deepfake artificial intelligence technology are also not specifically accommodated; they currently only have general coverage. This creates a legal vacuum in Indonesia regarding these issues. Conclusion: There are differences in regulations in each country that govern banking transactions in the metaverse and crypto, as well as regulations on cyber financial crimes. Therefore, the government needs to review existing regulations and reconstruct them to govern banking transactions in the metaverse and blockchain. It is also essential to create specific regulations for the protection of personal data and regulations specifically addressing artificial intelligence.

Strategi Pengembangan Literasi Keuangan Syariah Dalam Meningkatkan Jumlah Nasabah BPRS Lantabur Tebuireng Cabang Surabaya

The purpose of developing Islamic financial literacy for BPRS Lantabur Tebuireng Surabaya Branch begins with the adjustment of the Financial Services Authority regulations related to routine reporting of Islamic financial literacy in each bank, including BPRS. Furthermore, in order to provide knowledge or self-introduction to the people of the City of Surabaya who are still used to Conventional Banks. On the other hand, the target for 2022 is to get customers, namely using the Bank's Business Plan (RBB), starting from the target of financing, funding, and profit. Therefore, BPRS Lantabur Tebuireng Surabaya Branch is looking for customers whose needs are adjusted to meet the criteria categorized by the bank. In addition to providing financial literacy to prospective new customers, BPRS Lantabur Tebuireng Surabaya Branch also provides Islamic financial literacy to existing customers directly. Thisresearch uses a qualitative method with a case study approach that examines the Strategy for Developing Islamic Financial Literacy in Attracting Customers of BPRS Lantabur Tebuireng Surabaya Branch. The results of this study can be explained that in order to carry out Islamic financial literacy in attracting customers, evaluations continue to be carried out, one example is the removal of the brochure sharing method because it is considered ineffective. The new method is to create events, collaborate with institutions, hold certain moments such as milad Lantabur and Milad BPRS in Indonesia country as well as the reference.

Penerapan Prinsip Kehati-hatian Pada Data Nasabah Pinjaman Secara Online

Introduction: Process of providing loans without intermediaries such as banks and credit institutions, there is a special website in the form of an implementation platform where the user can become a giver. In online loans, some are guaranteed and some are without collateral, this can lead to misuse of personal data for users of financial technology services.Purposes of the Research: The purpose of writing this thesis is to find out and explain the application of the precautionary principle of online loan customer data and how the form of legal protection for online loan customer data.Methods of the Research: The research method used in this study is normative juridical with a conceptual approach and statutory regulations and legal materials used are primary and secondary legal materials.Results of the Research: The The results of this study indicate that financial technology is an innovation or a combination of conventional banking credit agreement systems with a touch of modern technology. The system for managing credit agreements in financial technology includes: Basic Banking Law No. 10 of 1998, Bank Indonesia Regulation (PBI) No. 19/12/PBI/2017 concerning the Implementation of Fintech, Financial Services Authority Regulation No. 77/POJK.01/2016 regarding Information Technology-Based Money Borrowing Services Digital Financial Services, then Regulations regarding the principle of prudence in fintech credit agreements have the same rights and obligations between conventional credit agreements with fintech.

Legal Responsibility of the Insurance Company for Unpaid Participant Claims

Insurance is a financial institution that has a vital role in the economy. Insurance protects the public from various risks, such as accidents, illness, and death. The insurance company must pay claims to insurance participants who experience losses in an insurance agreement. However, in practice, claims are often rejected by insurance companies. The purpose of this research is to analyze the legal responsibility of insurance companies for unpaid participant claims. This research uses normative legal research methods. Research data was obtained through a literature study. Research data was analyzed qualitatively using descriptive analysis methods. The research results show that insurance companies that reject insurance participants' claims can be subject to civil and criminal legal responsibility. If the participant's claim is not paid, the participant can file for bankruptcy through court. The regulations that provide the legal umbrella for protecting insurance participants consist of Law Number 8 of 1999 concerning Consumer Protection, Law Number 40 of 2014 concerning Insurance, Decree of the Minister of Finance No. 422/KMK.06/2003 concerning the Implementation of Insurance Business and Reinsurance Companies, and Financial Services Authority Regulation Number 23/POJK.05/2015 concerning Insurance Products and Marketing of Insurance Products. Legal protection for insurance policyholders as consumers are regulated in the Insurance Law and the Consumer Protection Law.

Wanprestasi Perjanjian Repurchase Agreement di Pasar Modal yang Berdampak Kerugian Investor Dihubungkan dengan Peraturan Otoritas Jasa Keuangan Nomor 9/Pojk.04/2015 Tentang Pedoman Transaksi Repurchase Agreement bagi Lembaga Jasa Keuangan

Abstarct. Guidelines regarding transactions repurchase agreement (REPO) has been regulated by the Financial Services Authority (OJK), but in practice there are still cases where one of the parties experiences losses due to non-compliance with the agreement in practice due to an action that is not in accordance with the agreement. The approach method used in this research is the Normative Juridical approach, namely a legal approach carried out by examining library materials or secondary data. This research is descriptive analytical in nature, which provides a description of an object being studied through the data collected, apart from that the analysis is also carried out based on relevant and latest laws and regulations in order to get answers to the problems being studied. Implementation of a repurchase agreement (REPO) transaction agreement, in this case the seller and buyer must enter into a written agreement that complies with the provisions of Financial Services Authority Regulation Number 9/POJK.04/2015. In relation to liability for default, the aggrieved party can take legal action in Article 1267 of the Civil Code, namely by requesting implementation of the contents of the agreement if it can still be implemented, requesting compensation, requesting cancellation of the agreement as well as compensation. Implementation of the repurchase agreement (REPO) transaction must be based on the agreement. written and implementing GMRA. Meanwhile, Financial Services Authority Regulation Number 9/POJK.04/2015 states that if an event of failure occurs, all parties must complete their obligations in accordance with the procedure for resolving the event of failure as well as the related rights and obligations that have been regulated in the repurchase agreement (REPO) transaction agreement.

Procedures For Sustainable Credit Disbursement In The Banking Sector In Realizing Justice

This research explores sustainable lending procedures in the Indonesian banking sector, which is the key to fair and sustainable economic development. Based on Law No. 10 of 1998 concerning Amendments to Law No. 7 of 1992 concerning Banking, as well as Law No. 21 of 2011 amended by Law No. 4 of 2023 concerning Development and Strengthening of the Financial Sector, this study explores the implementation of Financial Services Authority Regulation No. 51/POJK.03/2017. Using a qualitative approach, researchers inventory and analyze relevant legal materials to assess the effectiveness of sustainable lending. The research findings show that despite progress, improvements in supervision and risk management are still needed to ensure sustainable financial practices. This research proposes a credit distribution model that takes into account the principles of justice and sustainability, through strategic coordination between financial institutions, government, and other stakeholders to achieve appropriate economic development goals based on the 1954 Constitution

Ensuring Legal Certainty: The Disbursement of Bank Guarantees

The precautionary principle, commonly associated with lending, extends beyond credit transactions to include other banking services such as bank guarantees. Bank guarantees serve as a form of debt guarantee provided by banks to their customers. This article addresses concerns related to the disbursement of bank guarantees during disputes and emphasizes the importance of customer protection in this context. The method employed is a normative juridical approach, incorporating conceptual, statute, and philosophical considerations. The findings reveal that the application of the Precautionary Principle in the Financial Services Authority Regulation (POJK) Number 18/2016 is evident through the inclusion of "Risk Management" provisions. In line with the Precautionary Principle, banks are advised to postpone disbursement when a legal dispute arises between the beneficiary of the bank guarantee and the customer who applied for it. To prevent controversies arising from bank guarantee disbursements, it is recommended that Bank Indonesia or the Financial Services Authority (OJK) establishes regulations specifically addressing the disbursement process for bank guarantees. This regulatory framework would contribute to the effective implementation of the Precautionary Principle in the context of bank guarantees.

EVALUASI KINERJA BANK SYARIAH INDONESIA SEBELUM DAN SETELAH KONSOLIDASI BERDASARKAN RASIO KEUANGAN DAN PERATURAN OTORITAS JASA KEUANGAN TAHUN 2019 – 2022

This study aims to evaluate the financial performance of Bank Syariah Indonesia before and after consolidation based on financial ratios and the 2019-2022 Financial Services Authority Regulation. The indicators in this study use various financial ratios of Bank Syariah Indonesia, namely liquidity ratios, profitability ratios and capital adequacy ratios. The method used uses Comparative Analysis by comparing financial ratios before and after consolidation to understand financial conditions after consolidation, measure operational efficiency and assess financial performance. Based on the research results based on SEOJK Number 28/SEOJK.03/2019 standards, it shows that the NPF, FDR, and ROA ratios of Bank Syariah Indonesia after consolidation have better results than before consolidation and have a rating criterion of 1. Furthermore, the ROE and NOM ratios after consolidation have better results than Bank Syariah Indonesia before consolidation even though they have criteria for ranking 3 and ranking 5. The BOPO and CAR ratios after consolidation have very varied results but also indicate very good compared to Bank Syariah Indonesia before consolidation even though they have a rating criterion of 1.

Impact of ESG Implementation on Financial Performance and Capital Structure

The realization of investments in Indonesia has surpassed 23.3% of the targeted amount for the year 2023, indicating a gradual economic recovery. This creates an opportunity for companies to attract more investors. The high level of investment is followed by certain responsibilities named Environmental, Social, and Governance (ESG) within their operational businesses. The implementation of ESG in Indonesia is further supported by the Indonesia Government through the Financial Services Authority Regulation No. 51/POJK.03/0217 and the establishment of the Carbon Exchange regulation in 2023. The objective of this study is to discern the influence of company ESG scores on companies’ performance, measured through ROE and its capital structured, measured by DER. ESG data were obtained through access to Refinitiv Eikon, incorporating data from all sub-points within the three ESG aspects. The study population is companies listed on the Kompas100 index. Under the purposive sampling method, twenty-six companies have disclosed their ESG and financial data for the year 2017-2022. Statistical processing of data was conducted using SEM-PLS. The study concludes that E, S, and G scores individually influence ROE but do not have any significant impact on DER. This study offers insight to assist companies in formulating ESG implementation strategies, with a focus on environmental innovation for E aspect, product responsibility for the S aspect, and shareholder considerations for the G aspect.

Legal Protection For Third Parties Who Are Provided As Individual Guarantees By Fintech Peer-To-Peer Lending

The emergence of fintech companies is increasingly receiving attention from the public and regulators, namely the financial services authority (OJK) and Bank Indonesia (BI). This is stated in Financial Services Authority Regulation Number 77/POJK.01/2016 concerning Information Technology-Based Money Lending and Borrowing Services. This regulation regulates information technology-based money lending and borrowing services or what is called peer to peer money lending. As of May 24 2021, the total number of fintech peer to peer lending or fintech lending providers registered and licensed with the OJK was 131 companies. In the case of a loan recipient applying for a loan on an online loan platform, the borrower will usually be asked to include an emergency contact as a condition for applying for a loan, but this is done without the permission of the third party who is used as an emergency contact. This resulted in losses for the emergency contact party due to terror from the lender as a result of the loan recipient experiencing late payments. LBH Jakarta received 1330 reports of loan victims from 25 provinces in Indonesia. One of them is Dian Siregar, who was a victim who was terrorized by an online loan where he received a short message from one of the KSP Rupiah Petir Pro loan applications after being made a guarantor by his friend without prior approval or confirmation.

Kepastian Hukum Akta Perubahan Badan Kredit Desa Menjadi PT. Lembaga Keuangan Mikro

Related to the enactment of Financial Services Authority Regulation Number 10/POJK.03/2016 concerning Fulfillment of Rural Bank Regulations and the Transformation of Village Credit Agencies that are Granted Status as Rural Credit Banks. As regulated in Article 2 paragraph (1), which stipulates that BPR provisions must be fulfilled by BKD, namely institutional, prudential principles, financial reporting and transparency, as well as the application of accounting standards for BPR. However, in reality, not all BKD practices can fulfill the requirements for transformation into BPR, this is because BKD does not have a position as a legal entity, but has a unique work system, namely management which is carried out with simple integrated time, namely operational time which is only carried out at certain times and not every day carrying out operational activities. This research uses a normative juridical method with a statutory and conceptual approach, and legal materials are analyzed using a deductive method. The results of this research are that the transition of BKD to LKM is based on OJK regulation no. 10/POJK.03/2016 relating to the fulfillment of BKD transition provisions has a significant impact on BKD. This regulation requires BKD to change its legal entity status.