BANK INDONESIA’S ROLE IN MITIGATING ISSUES OF MONETARY ECONOMIC SOVEREIGNTY AND HUMAN RIGHTS
##plugins.themes.academic_pro.article.sidebar##
Downloads
##plugins.themes.academic_pro.article.main##
Abstract
Bank Indonesia has strategic authority to maintain the stability of monetary conditions in Indonesia through monetary policy. One concern is the risk is the emergence of shadow banking where fintech companies channel funds from the public. In the long term, this situation can impact the operational conditions of the banking system. One of Bank Indonesia’s mandates is to supervise the provision of services by fintech companies (peer-to-peer lending) to align with the national financial and payment vision and mission, including establishing interlinks between fintech and banking to avoid risks posed by shadow banking. Interlinking works if each party is willing to share customer data. If Bank Indonesia requires fintech companies to share customer or user data, it must be based on clear and specific legislation. This is crucial because user data falls under personal data, and the state must guarantee the protection of its citizens’ personal data. This article discusses the importance of legislation regarding the legitimacy of Bank Indonesia’s authority to regulate interlinks between fintech companies and Bank Indonesia, as well as banking institutions, to avoid shadow banking. The article employs a normative legal approach using literature and legal sources.
##plugins.themes.academic_pro.article.details##
References
- Claessens, S. Pozsar Z., Ratnovski L & Singh, M. Shadow Banking: Economics and Policy Priorities, https://www.imf.org/en/Publications/Staff-Discussion-Notes/Issues/2016/12/31/Shadow-Banking-Economics-and-Policy-40132, 2012.
- Claus D. Zimmermann, The Concept of Monetary Sovereignty Revisited, The European Journal of International Law Vol. 24 No. 3, Oxford University Press, 2013.
- Christopher Kuner, “The European Union and the Search for an International Data Protection Framework”, Groningen Journal of International Law, Vol 2, 2014.
- Daniel J. Solove Understanding Privacy Cambridge, Harvard University Press, 2009.
- Ehrentraud, Johannes, Denise Garcia Ocampo, and Camila Quevedo Vega. Regulating FinTech Financing: Digital Banks and FinTech Platforms, Vol. 27. FSI Insights on Policy Implementation. Basel: Bank for International Settlements, https://www.bis.org/fsi/publ/insights27.pdf, 2020
- Financial Stability Board, Strengthening Oversight and Regulation of Shadow Banking Policy, 29 August 2013, https://www.fsb.org/wp-content/uploads/r_130829c.pdf.
- Gary T. Marx (1998) in Kristie Ball, Kevin Haggerty, dan David Lyon, Routledge Handbook of Surveillance Studies. New York: Routledge, 2012.
- Ibrahim A. Zeidy, The Role of Financial Technology in Changing Financial Industry and Increasing Efficiency in the Economy, Common Market for Eastern and Southern Africa, https://www.comesa.int/wp-content/uploads/2022/05/The-Role-of-Financial-Technology.pdf
- Kairong Xiao, Monetary Transmission through Shadow Banks, Columbia University, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3166114.
- McKay Cunningham, Complying with International Data Protection Law, University of Cincinnati Law Review Volume 84 Issue 2, 2018.
- Ordonez G, Confidence Banking, paper presented at the 2010 Meeting Papers, 2010.
- Ratnawaty Marginingsih, Financial Technology (Fintech) Dalam Inklusi Keuangan Nasional di Masa Pandemi Covid-19, Moneter:Jurnal Akuntansi dan Keuangan Volume 8 No. 1 April 2021 P-ISSN 2355-2700 E-ISSN 2550-0139.
- Rosadi, Sinta Dewi, Cyberlaw: Aspek Data Privasi Menurut Hukum Internasional, Regional dan Nasional, Bandung, Refika Aditama, 2015.
- Rosco Pound, My Philosophy of Law, Julius Rosenthal Foundation Northwestern University 1941, 249, adapted from Sinta Dewi Rosadi, Protecting Privacy on Personal Data in Digital Economic Era: Legal Framework in Indonesia, Brawijaya Law Journal Volume 5 Number 1 April 2018, https://lawjournal.ub.ac.id/index.php/law/article/view/144/pdf.
- Soehaditama, Josua Panatap, Sustainability in Bank: Deposits, Investment and Interest Rate. Formosa Journal of Sustainable Research, 2(5), 1069–1078. https://doi.org/10.55927/fjsr.v2i5.3912, 2023.
- Steven L. Schwarz, Shadow Banking, Financial Risk, and Regulation in China and Other Developing Countries, The Global Economic Governance Programme University of Oxford.
- Stijn Claessens, Zoltan Pozsar, Lev Ratnovski, and Manmohan Singh, IMF Staff Discussion Note, SDN/12/12 December 4, 2012.
- T. Gerety, ‘Redefining Privacy’ Harvard Civil Rights-Civil Liberties Law Review 12 (1977): 236 and William Parent ‘Privacy Morality and the Law’ Philosophy and Public Affairs 12, 1983.
- Zoltan Pozsar et al., Federal Reserve Bank of New York Staff Reports, No. 458: Shadow Banking, 2010.
- Bank Indonesia Regulation Number 23/6/PBI/2021 on Payment Service Providers.
- Financial Services Authority Regulation No. 77/POJK.01/2016 on Information Technology-Based Lending and Borrowing Services
- Law No. 11 of 2008 concerning Electronic Information and Transactions, as last amended by Law No. 1 of 2024 concerning the Second Amendment to Law No. 11 of 2008 on Electronic Information and Transactions.
- Law Number 23 of 1999 on Bank Indonesia.
- Law Number 27 of 2022 on Personal Data Protection
- International Covenant on Civil and Political Rights
- United Nations, 1988, General Comment No. 16 of Article 17 on The Right to Respect of Privacy, Family, Home and Correspondence, and Protection of Honour and Reputation.
- United Nations Human Rights Commission, General Comment No 16 Article 17 on the Right to Respect of Privacy, Family Home and Correspondence and Protection of Honour and Reputation, 8 April 1988, UN Doc., HRI/GEN/Rev9.
- ASEAN, ASEAN Telecommunications and Information Technology Ministers Meeting Framework on Digital Data Governance, https://asean.org/wp-content/uploads/2012/05/6B-ASEAN-Framework-on-Digital-Data-Governance_Endorsedv1.pdf
- Bank Indonesia, Blueprint Sistem Pembayaran Indonesia (BSPI) 2025, https://www.bi.go.id/id/fungsi-utama/sistem-pembayaran/blueprint-2025/default.aspx 15 February 2024.
- Bank Indonesia, Blueprint Sistem Pembayaran Indonesia 2025 Menavigasi Sistem Pembayaran Nasional di Era Digital, https://www.bi.go.id/id/fungsi-utama/sistem-pembayaran/blueprint-2025/default.aspx
- Otoritas Jasa Keuangan Republik Indonesia, Statistik P2P Lending Periode Desember 2023, https://ojk.go.id/id/kanal/iknb/data-dan-statistik/fintech/Pages/Statistik-P2P-Lending-Periode-Desember-2023.aspx.
- Otoritas Jasa Keuangan Republik Indonesia, Statistik P2P Lending Periode Desember 2022, https://ojk.go.id/id/kanal/iknb/data-dan-statistik/fintech/Pages/Statistik-Fintech-Lending-Periode-Desember-2022.aspx.
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.