Financial Services Authority Research Articles

THE INFLUENCE OF FINANCIAL TECHNOLOGY AND LIQUIDITY ON THE FINANCIAL PERFORMANCE OF BANKS IN INDONESIA

The purpose of this study is to evaluate how financial technology and liquidity levels affect the financial performance in conventional commercial banks in Indonesia that are listed in the Financial Services Authority. The research population includes conventional commercial banks listed on the Indonesia Stock Exchange from 2017 to 2023. The sampling technique is conducted through purposive sampling. The data analysis method uses panel data regression analysis. The data used are from 49 banks with a total of 176 financial reports, and hypothesis analysis is conducted using SPSS software. The research results indicate that financial technology has an impact on the financial performance of the banking sector in Indonesia, while liquidity levels also play a role in influencing the financial performance in the same banking sector.

CONSUMER PROTECTION AGAINST DEBTORS ON THE TRANSFER OF MORTGAGE RIGHTS VIA CESSIE

Disparities in financial capabilities in society have resulted in many credit agreements being entered into between consumers as debtors and banks as creditors or lenders, which are also accompanied by collateral in the form of mortgage rights which are used as collateral for payment of receivables by the debtor if he is unable to pay his debts to the creditor. The scope related to credit agreements is increasingly expanding when the model develops that credit agreements can be transferred to third parties through a cessie or receivable transfer agreement which of course poses risks for both creditors and debtors because in principle, when receivables are transferred to the cessie buyer, then the mortgage rights as collateral are also also transferred, including in terms of claim rights by new creditors. Therefore, this issue is interesting to discuss from the perspective of debtor protection as consumers of banking institutions, especially regarding the procedures and requirements that need to be understood regarding the transfer of mortgage collateral through a cessie or receivable transfer agreement. Apart from that, debtors also need to know what legal remedies can be submitted if the credit agreement or receivable transfer procedure causes losses for the debtor. In this research, the author uses a normative juridical research method using literature study and a legal approach. The results of the research show that based on the Consumer Protection Law and Financial Services Authority regulation, the Debtor as a consumer has the right to know clear and accurate information regarding the procedures and requirements of credit agreements including receivable transfer or cessie agreements and the legal consequences for the mortgage rights which he uses as collateral, including filing a complaint and/or legal remedies in litigation and non-litigation as long as he feels disadvantaged. The government needs to aggressively carry out outreach regarding all applicable regulations regarding credit agreements.

Problems with Financial Services Authority Regulation Number 77/POJK.01/2016 as the Legal Basis for Sharia Fintech Peer-To-Peer Lending in the Review of Islamic Law

This research analyzes the Financial Services Authority Regulation (POJK) Number 77/PJOK.01/2016 as the legal basis for sharia P2PL fintech in reviewing Islamic law. This research uses a qualitative approach through normative juridical methods. The research results show that Financial Services Authority Regulation Number 77/PJOK.01/2016 needs to be revised to serve as the legal basis for sharia P2PL. Even though there was a fatwa from the National Sharia Council-Indonesian Ulema Council (DSN-MUI) in 2018, this caused legal confusion. This research concludes that special regulations are needed to regulate Sharia P2PL fintech.

THE IMPACT OF THE HALAL INDUSTRY AND ISLAMIC FINANCIAL ASSETS ON INDONESIA'S ECONOMIC GROWTH USING THE VECTOR AUTOREGRESSION (VAR) APPROACH

The present study intends to examine the influence of the halal business and Sharia financial assets on economic growth in Indonesia. The research method requires a quantitative methodology. Research data was acquired in time series form from the Central Statistics Agency (BPS), Financial Services Authority (OJK), and State of the Global Islamic Economy Report (SGIE). The VAR approach is used for analysis once the data is interpolated monthly. The findings in this research suggest a favorable and significant association between the halal industry and economic growth in Indonesia in the short term. Meanwhile, Islamic financial assets significantly affect economic growth in Indonesia. According to the results of the Granger causality test, a one-way causal relationship exists between economic development in Indonesia and the halal industry. The research results demonstrate that the halal industry is essential in supporting economic growth in Indonesia. With this research, the halal industry and Sharia financial assets can improve Indonesia's economic growth by increasing the halal sector.

Do Corporate Governance and Bank-Specific Factors Matter On Banking Financial Performance?

Purpose: This study explores and presents empirical evidence on the influence of self-assessment of bank corporate governance and bank-specific factors on the financial performance of commercial banks in Indonesia. Methodology/approach: We conducted the study on 35 Indonesian public banks listed on the Indonesia Stock Exchange from 2017 to 2021. Using structural equation modeling, a thorough analysis was performed on a dataset of 160 observation samples that were carefully selected through purposive sampling. Findings: This study found that the implementation of corporate governance, which is proxied by the rating of self-assessment of corporate governance, and bank-specific factors significantly affect bank financial performance. The better the corporate governance self-assessment rating, the better the bank's financial performance. Other results indicate that bank-specific factors, as reflected by bank ownership, size, and diversification, significantly positively contribute to bank financial performance. Practical implications: This research aims to provide valuable insights that can support the Indonesian Financial Services Authority (OJK) in implementing effective corporate governance practices. It focuses on enhancing risk management, strengthening the bank's internal capacity, and ensuring compliance with regulations to promote best practices in bank management. Originality/value: This study provides new insight by examining the factors influencing financial performance in the banking sector, focusing on bank-specific factors and the regulatory aspects of Indonesian banking governance.

Legal Protection for Investors Buying and Selling Shares Online and in the Capital Market

This study aims to know and analyze legal protection for investors in terms of buying and selling shares online and to find out and analyze the factors inhibiting the implementation of factors that hinder legal protection for investors in terms of buying and selling shares online. The research method carried out in this study is normative legal research, in this case, using material collection techniques in the form of document and literature studies. The results of this study show the form of legal protection for investors as consumers in Law Number 8 of 1999 concerning Consumer Protection, namely the establishment of BPKN and BPSK. Law Number 8 of 1995 concerning the Capital Market has been regulated regarding the disclosure of information that must be provided to investors, and the regulation of Bapepam-LK as a supervisory body for every activity related to the capital market, which has been transferred to the OJK. Law Number 21 of 2011 concerning the Financial Services Authority aspects of legal protection provided by this law are prevention or preventive efforts and enforcement or repression carried out by the Financial Services Authority. The inhibiting factors faced in carrying out investor protection are still the large number of unlicensed/illegal online stock investments and the lack of knowledge of the investor community related to illegal investments. Research Recommendations It is expected that the government will be able to update Law Number 8 of 1999 concerning Consumer Protection to protect consumers optimally in this era of highly developed technological development. It is expected that in the future, the government will need to regulate online stock investment through a special law. It is expected that in the future, there will be coordination and cooperation between OJK and BPKN / BPSK in ensuring investor (consumer) protection. Investors are expected to be more careful in seeking information and choosing a clear securities company that has obtained permission for its activities. To find out the forms of violations/crimes in capital market transactions and to know the legal protection of investors in capital market transactions. The journal writing method uses normative research with an approach, namely the statutory approach, namely Law Number 8 of 1995 concerning the capital market, the fact approach to alluding to capital practices in Indonesia, and the concept analysis approach to legal analysis. Based on the results of the study, namely: Legal Protection to the Capital Market Supervisory Body Article 4 of Law No. 8 of 1995 concerning the capital market stated that "coaching, regulating, supervising by Bapepam to create orderly, fair, and efficient capital market activities and crimes and violations in the capital market sector will be involved in legal cases, in capital market violations, usually regarding BAPEPAM licensing and registration cases.

Determinants of Financial Performance in Influencing Inclusivity of Sharia Pension Fund Participants in Indonesia

Financial planning in old age is very important to do in order to prepare for the guarantee of life in old age. Sharia pension funds are a means that facilitate participants in meeting their needs in retirement. This study aims to provide empirical evidence related to the relationship between ROI, RITA, and Liability financial performance to the inclusion of Sharia pension fund participants in Indonesia. This type of research uses quantitative associative. The research data source uses secondary data from the publication of Sharia IKNB statistics on the Financial Services Authority website. The research sample was 17 quarterly data in the period 2019-2023. Research Object on Sharia Pension Fund companies in Indonesia. Data collection techniques through a literature study of journal articles and official websites indirectly supporting research literature. Data analysis using multiple linear regression. The results showed partially that Return on Investment (ROI) did not have a negative effect on Sharia Pension Fund Inclusion, Investment to Asset Ratio (RITA) had a positive effect on Sharia Pension Fund Inclusion, and Liabilities had a positive effect on Sharia Pension Fund Inclusion. Meanwhile, simultaneously independent variables (ROI, RITA, and Liability) significantly affect the positive effect of Sharia Pension Fund Inclusion in Indonesia.

Is Islamic Monetary System Possible in Indonesia? Interrelation Study between BI 7 Days Reverse Repo Rate and Nisbah Rate

The purpose of this study is to investigate the interrelationship between Bank Indonesia 7 Days Reverse Repo Rate (BI 7 DRRR) and Profit-Loss Sharing Rate (Nisbah Rate) in Islamic Sharia Banks (Bank Syariah Indonesia). Indonesia had been establishing conventional monetary system ever since and have yet to introduce Islamic approach to its monetary system. Now, in Islamic monetary perspective, interest rate doesn’t exist. Therefore, this research aimed to discover the possibility of Islamic approach in Indonesia’s monetary system, using Nisbah Rate launched by Islamic Sharia Banks as a substitution. The research was conducted using VAR (Vector Autoregression) to study the interrelationship between BI 7 Days Reverse Repo Rate and Nisbah Rate, using data obtained from Islamic Banking Statistics through Indonesia’s Financial Service Authority (OJK) monthly during 2021-2023. The result showed that both BI 7 Days Reverse Repo Rate and Nisbah Rate did cause impact on one another, and thus the possibility of establishing Islamic monetary system is not completely disregarded. This investigation contributes to the ongoing discourse surrounding the integration of Islamic financial principles into conventional monetary frameworks. By highlighting the reciprocal influence between conventional monetary policies and Islamic financial instruments, this study underscores the potential for a hybrid monetary system that accommodates Islamic principles within the Indonesian financial landscape.

ANALISIS PUTUSAN PENGADILAN TINGGI MEDAN NOMOR 66/PID.SUS/2018/PT.MDN TERKAIT TINDAK PIDANA PERPAJAKAN

If in the activities of a company there is a criminal element, then in this case there is a criminal act of taxation, even if it is committed by the company itself, and although it is subject to responsibility, there is no legal basis for the theory of piercing the veil of the corporation Justified. To other parties such as directors or shareholders. Provisions regarding beneficial rights have not been regulated in the Criminal Procedure Code and the Tax Procedure Law, but beneficial owners can be held accountable as parties who have the power to control the company, such as giving instructions to the company's directors. In Indonesia, beneficiary ownership rights include Financial Services Authority Regulation No.12/POJK. 01/2017 dated March 16, 2017 concerning the Implementation of Anti-Money Laundering and Anti-Terrorist Financing Programs in Financial Services; It is strictly regulated by several laws. Unfortunately, this provision does not apply in the Presidential Regulation of the Republic of Indonesia Number 13 of 2018 concerning the Application of the Principle of Recognizing Business Excellence in the Framework of Prevention and Eradication of Money Laundering and Terrorist Financing. Crime in the field of taxation. In the field of taxation, the regulation regarding beneficial owners is very limited and only applies to foreign taxpayers, so it still provides opportunities for beneficiaries in the sense of actual beneficial owners to commit tax crimes.

Analisis Reaksi Pasar Terhadap Keterlambatan Penyampaian Laporan Keuangan Interim

The late submission of interim financial reports causes companies listed on the Indonesia Stock Exchange (IDX) to pay a fairly large amount of fines. The Financial Services Authority (OJK) issued regulations for companies going public to report and publish audited annual financial reports, so that each company must submit accordingly and on time. Therefore, this research aims to determine the comparison of abnormal returns and stock trading volume before and when there is a delay in submitting financial reports. The data used in this research are the financial reports of companies registered on the IDX that are late in submitting financial reports. The results of this research show significant differences in abnormal returns and stock trading volume before and after the delay in submitting interim financial reports. The study uses the average difference test method, with the object of the financial statements of 35 listed companies that have not submitted financial reports for the period 2021 to 2022. After descriptive statistical analysis, there are company values that are recorded as poor in submitting their interim financial reporting. The results showed that there was a significant difference between the performance before and after the company's financial reporting on abnormal returns and stock trading volume on the submission of financial reports.

Law and Regulation as Safeguards for Investors Against Crime in Capital Market Sector

As a country with potency in economic growth, Indonesia is supported by several essential sectors, and one of them is through the Capital Market. The capital market enables the growth acceleration for a company or country by providing the needed fund. At least, through this medium, there are reciprocal benefits obtained by both parties involved in the Capital Market: issuers with capital injections, and investors with dividends and price increases. Unfortunately, there are big risks that investors have to deal with in capital markets, and some of them are related to fraud, market manipulation and insider trading. The results of this research found that government has enacted regulations that protect investors' rights through the Capital Market Law and the Financial Services Authority Law. However, there are still weaknesses in this regulation, especially for types of crimes that are still not regulated in this regulation. Moreover, it is necessary to have sufficient prowess from the authorized institution, especially the Financial Services Authority (OJK), to resolve cases in accordance with the applicable law aiming to protect investors' rights.

Pertanggungjawaban Hukum Kepada Lender dari Konsep Bisnis Inventory Financing serta Penyelesaian Sengketa

The Inventory Financing business model is starting to develop in the peer-to-peer lending system in Indonesia. The development factor from peer-to-peer lending to Inventory Financing is the existence of collateral that is still controlled by the borrower (debtor). This research examines the legal responsibility of the lender in Inventory Financing, and dispute resolution when one party is negligent in performing its obligations. This article aims to find Inventory Financing arrangements that protect lenders and dispute resolution methods of Inventory Financing. This research uses a normative juridical method (desk research) using secondary data, namely laws and regulations and theories of contract law, development law, and legal protection. The findings in this study are that Inventory Financing is still not regulated, so it has the potential to cause disputes in its implementation. Another finding is that the method of resolving inventory financing disputes can be done through judicial and non-judicial institutions (Alternative Dispute Resolution Institutions). Alternative Dispute Resolution Institutions can be ideal because they can resolve problems quickly, easily, and cheaply.Keywords: Alternative Dispute Resolution Institution, Financial Services Authority, Peer to Peer Lending

The Influence of Zakat on Financial Performance (SCnP Model) with Islamic Corporate Social Responsibility as a Moderating Variable

Islamic banking is a financial institution that has a noble mission and goals. In addition to seeking profits, Islamic banks also pay attention to social aspects. This study aims to examine the effect of Zakat on Financial Performance (SCnP Model) with Islamic Corporate Social Responsibility as a Moderating Variable. This research uses a type of quantitative research with an associative approach. The population of this study is Islamic Commercial Banks registered with the Financial Services Authority (OJK) for the 2018- 2022 period. The sampling technique used purposive sampling to obtain 7 Islamic Commercial Banks. The data processed is secondary data obtained from annual reports published through the official website of each bank for 2018-2022. The data analysis technique used is multiple regression analysis with the help of the Eviews-10 software program. The results showed that Zakat has a positive and significant effect on Financial Performance (Sharia Conformity), Zakat has a negative and significant effect on Financial Performance (Profitability), Islamic Corporate Social Responsibility can moderate the effect of zakat on Financial Performance (Sharia Conformity) and Islamic Corporate Social Responsibility is not able to moderate the influence of zakat on Financial Performance (Profitability). Keywords: Zakat, Financial Performace (SCnP Model), Islamic Corporate Social Responsibility

The Influence of Intellectual Capital and Company Size on Company Profitability (Empirical Study on Sharia Commercial Banks Registered with the Financial Services Authority for the 2017-2021 Period)

This study aims to determine the influence of intellectual capital and company size on company profitability. This type of research is associative research. The selected population is a Sharia Commercial Bank company registered with the Financial Services Authority for the period 2017-2021 with a total sample of 9 companies. The sampling technique used was purposive sampling. The type of data used is secondary data taken by the method of documentation and accessing the site www.ojk.go.id. The data analysis techniques used were descriptive statistics and multiple linear regression analysis which were processed with the help of the SPSS Ver. program 25. The research results show that intellectual capital has a positive effect on company profitability, while company size does not affect company profitability. Profitability in an Islamic perspective which is guided by the Al-Qur’an and Hadith becomes a reference in achieving a profitability goal without leaving the afterlife orientation. This is because the actual numbers or materials are only a tool to achieve the goal of the hereafter. Keywords: intellectual capital, company size, company profitability

The Influence of Financing Diversification and Financial Performance on the Risk of Islamic Commercial Banks in Indonesia

This study aims to examine the influence of financing diversification, which includes six financing contracts of Islamic banks in Indonesia and financial performance on credit risk represented by NPF in Islamic commercial banks using regression panel data in 2018-2022. The results of this study indicate that there is an insignificant positive influence on financing diversification and financial performance partially on credit risk in Islamic banking in Indonesia. However, financing diversification and financial performance together have a significant influence on credit risk, which is currently a concern of the Islamic bank financial services authority in Indonesia. The financial performance measurement indicators in this study only focus on ROA, and this indicator may have limitations in measuring the financial performance of Islamic banking.

Aspek Hukum Penggunaan Jasa Pihak Ketiga (Debt Collector) oleh Pihak Leasing Berdasarkan Peraturan Otoritas Jasa Keuangan Nomor. 35 Tahun 2018 dalam Upaya Penagihan Kendaraan Roda Dua terhadap Debitur yang Melakukan Wanprestasi

The purpose of this study is to analyze the legal aspects of the use of third party services (debt collectors) by leasing parties based on Financial Services Authority Regulation No. 35/2018 in efforts to collect two-wheeled vehicles against debtors in default. 35/2018 in efforts to collect two-wheeled vehicles against debtors who make defaults The type of research in this study is normative legal research. The research in question is research that has characteristics including gaps in legal norna / principles, does not use hypotheses, uses theoretical foundations / theoretical studies and uses legal materials consisting of primary legal materials, secondary legal materials and tertiary legal materials. The results of this study indicate that: (1) The position of debt collectors in the leasing company is as a collection officer not an execution officer, execution can only be carried out by a bailiff with a court decision as in Article 32 of the Fiduciary Guarantee Law paragraph (2). The legal relationship between debt collectors (collection service companies) and creditors, namely debt collectors when carrying out their duties, act based on the power of attorney given by the finance company to the debt collector to collect or collect collateral objects from debtors. Likewise, in POJK No.35/2018 article 50 Financing Companies can cooperate with other parties to carry out collection functions to Debtors. (2) The legal consequences of withdrawing motorized vehicles against debt collectors, debt collectors will be held criminally liable and sentenced to criminal sanctions as stipulated in the Criminal Code as criminal law in Indonesia if the implementation is not in accordance with procedures, as well as the creditor in this case leasing can be sued by the debtor and ask to compensate civilly for the act of withdrawing motorized vehicles by debt collectors if the withdrawal has violated existing provisions and violated the agreement agreed upon by the creditor and the debtor. However, if the implementation is in accordance with the procedure, it must be protected in accordance with applicable laws.

UNDERSTANDING SOLE PROPRIETORSHIP UNDER THE JOB CREATION LAW: A LEGAL HERMENEUTICS PERSPECTIVE

The issue of tender offers has gained prominence due to several high-profile cases involving the takeover of public companies, which have led to significant losses for shareholders, particularly public shareholders. The regulatory framework governing takeovers and tender offers is primarily established by Law No. 8 of 1995 concerning the Capital Market and Government Regulation No. 27 of 1998. The enactment of Law No. 21 of 2011 concerning the Financial Services Authority (OJK) in 2011 marked a significant shift in regulatory oversight, transferring authority over macroeconomic matters, including takeovers and tender offers, from Bank Indonesia to OJK. A notable example is the 2020 takeover of PT Garudafood Putra Putri Jaya Tbk. of PT Mulia Boga Raya Tbk. This study seeks to analyze the regulatory arrangements for tender offers in Indonesia and evaluate the impact of such takeovers on the public companies involved. The research employs normative legal research methodologies with a statutory approach, utilizing both primary and secondary legal materials.

Financial Services Authority Laws Against Non-Bank Financial Institutions Based on Outlaw Financial Technology

The jurisdiction of the Financial Services Authority to oversee non-bank financial institutions operating illegally on the basis of financial technology is outlined in Article 9 of Law No. 21 of 2011 concerning the Financial Services Authority. POJK No. 10/POJK.05/2022 regulates the legal proceedings initiated by the Financial Services Authority in response to violations committed by such illegal financial technology institutions. The objective of this research was to evaluate the current regulatory structure that oversees Non-Bank Financial Institutions (NBFIs) that engage in Online Financial Trading (OFT) and to pinpoint any regulatory shortcomings or challenges faced by financial authorities in their oversight of these companies. This study employs the Statutory Approach, the Case Approach, and the Analytical & Conceptual Approach to conduct normative research. Descriptive analytical methods were employed to acquire the data, and a qualitative approach was utilised to analyse both primary and secondary data. The research findings indicate that. The Financial Services Authority lacks the authority to regulate and enforce illicit fintech. The government established an Investment Alert Task Force (SWI) comprised of twelve ministries/institutions and financial services authorities, including those tasked with overseeing online loans and other illicit financial practices, in order to combat illegal fintech. OJK educates the public about the perils of illegal fintech and implements SWI in accordance with POJK Number 10/POJK.05/2022OJK so that it is possible to take decisive action against those who harm society through illegal fintech.

Enhancing financial stability in Islamic banks: An investigation of determinants during the COVID-19 in Indonesia

Purpose — This study investigates the determinants of Islamic banks' stability in Indonesia amidst the Covid-19 pandemic.Method — Employing a causality-associative quantitative approach, the research utilizes purposive sampling and secondary data collection from monthly financial reports on the official websites of OJK (Financial Services Authority) and BI (Bank Indonesia). Statistical techniques including normality test, multicollinearity test, t-test, f-test, R2 test, and multiple linear regression, aided by SPSS version 22 and Microsoft Excel, are employed for data analysis.Result — The results reveal that Islamic banks' total assets significantly positively influence their stability in Indonesia. Additionally, variables such as Operational Costs to Operational Income (OCOI) ratio and BI 7-Day Reverse Repo Rate (BI7DRR) exhibit significant negative effects on Islamic banks' stability. Practical implications — Understanding the influence of total assets, Operational Costs to Operational Income (OCOI) ratio, and the BI 7-Day Reverse Repo Rate (BI7DRR) on Islamic banks' stability in Indonesia during the Covid-19 pandemic can guide policymakers and bank management in implementing measures to strengthen resilience and mitigate risks, such as strategic asset management and cost optimization strategies.

ANALISA END USER LICENSE AGREEMENT (EULA) SEBAGAI BENTUK PERJANJIAN BAKU DALAM APLIKASI WON by BWS

The WON by BWS application is a form of digital banking product that allows Customers/Users to access banking services directly (real-time) and without the need for face-to-face interaction at the Bank's office. Banking services provided in the WON by BWS application include account opening, transfers in Indonesian Rupiah and US Dollar (both to accounts within BWS and to accounts in other banks), US Dollar purchases (USD-IDR and IDR-USD), bill payments (e.g., credit cards, electricity, telephone bills, etc.), purchases (e.g., flight tickets, phone credit, internet data, etc.), electronic money top-up (OVO, Gopay, ShopeePay), ATM/Debit Card blocking, and other features. Customers/Users intending to use the WON by BWS application are required to understand and agree to the end user license agreement (EULA) established by the Bank, which is a standard agreement as regulated by the Financial Services Authority. BWS, in drafting a standard agreement, must ensure a balance, fairness, and reasonableness between the Bank and Customers/Users. Based on this, the author intends to analyze the end user license agreement (EULA) of the WON by BWS application, to determine whether the standard agreement provides legal protection for Customers/Users.