Journal of Central Banking Law and Institutions https://jcli-bi.org/index.php/jcli <p style="font-size: 14px;">Journal title : <strong>Journal of Central Banking Law and Institutions</strong><br />Initials : <strong>JCLI</strong><br />Frequency : <strong>Triannually (January, May, and September)<br /></strong>DOI : <strong>Prefix 10.21098</strong><br />Online ISSN : <a href="https://portal.issn.org/resource/ISSN/2809-9885" target="_blank" rel="noopener"><strong>2809-9885</strong></a><br />Print ISSN : <a href="https://portal.issn.org/resource/ISSN/2827-7775" target="_blank" rel="noopener"><strong>2827-7775</strong></a><br />Editor-in-chief : <a href="https://www.scopus.com/authid/detail.uri?authorId=57216281372" target="_blank" rel="noopener"><strong>Dr.Perry Warjiyo</strong></a><br />Publisher : <strong>Bank Indonesia Institute</strong></p> <hr /> <p style="text-align: justify;">Journal of Central Banking Law and Institutions is an international peer-reviewed journal published by Bank Indonesia Institute. JCLI focuses on a range of topics examining the intersection of central banking law and institutions on monetary, financial system, and payment systems that include regulations, governance (transparency &amp; accountability), credibility, institutional politics, institutional arrangements, and institutional communication.</p> Bank Indonesia en-US Journal of Central Banking Law and Institutions 2827-7775 INDEPENDENCE OF BANK INDONESIA POST LAW NO. 4 OF 2023 ON DEVELOPMENT AND STRENGTHENING OF THE FINANCIAL SECTOR https://jcli-bi.org/index.php/jcli/article/view/280 <p>Economic conditions following the COVID-19 pandemic have impacted the financial sector’s condition. Considering how vital the financial sector is for both the economy and people’s lives, the government has enacted the Law on Development and the Strengthening of the Financial Sector (Law on P2SK), which amended and/or repealed several regulations related to the financial sector, including changes affecting Bank Indonesia. The Law on P2SK stipulates that Bank Indonesia is an independent state institution with the authority to carry out its mandate, free from interference from the government and/or other parties, except for some issues expressly regulated by this law. The phrase “except for certain matters which are expressly regulated by this law” means there is a potential threat to BI’s independence. For this reason, it is necessary to study further the implications of the regulations in the P2SK Law on BI’s independence. The benchmarks are institutional, organisational, political, and financial independence. The research method that was used was doctrinal. The results show that under the Law on P2SK, there is a change in the level of autonomy from the institutional, functional, and organisational standpoints. These changes will indeed affect BI’s ability to achieve its goals.</p> Yuli Indrawati Copyright (c) 2025 Journal of Central Banking Law and Institutions https://creativecommons.org/licenses/by-nc-sa/4.0 2025-05-26 2025-05-26 4 2 203 226 10.21098/jcli.v4i2.280 THE IMPACT OF FINANCIAL DEVELOPMENT AND THE INFORMAL ECONOMY ON SUSTAINABLE DEVELOPMENT IN ASEAN https://jcli-bi.org/index.php/jcli/article/view/285 <p>This study examines the interplay among the ASEAN region’s financial development, informal economy, and sustainable development. While financial development is expected to support economic growth, its relationship to sustainability remains ambiguous, particularly in economies with significant informal sectors. Using a panel dataset from 1991 to 2020 across 10 ASEAN countries, the study employs robust econometric techniques, including fixed effects, feasible general least squares methodology, and quantile regression, to assess the direct and indirect effects of financial development and informality on sustainability. Findings reveal that the informal economy positively contributes to sustainable development, likely by providing employment and economic opportunities. However, financial development, measured by a broad money supply and private sector credit, has a negative impact, suggesting that financial resources are not effectively allocated to sustainability-driven sectors. The interaction between financial development and informality further exacerbates sustainability challenges, indicating a misalignment between formal financial mechanisms and informal economic activities. These results highlight the need for policy strategies integrating informal sector dynamics into financial systems, ensuring financial growth translates into broader sustainable development outcomes. Strengthening financial inclusion and directing capital to sustainability-focused initiatives could help bridge the gap between formal finance and the informal economy in ASEAN nations.</p> Ismail Muhammed Sulaiman Musa Copyright (c) 2025 Journal of Central Banking Law and Institutions https://creativecommons.org/licenses/by-nc-sa/4.0 2025-05-26 2025-05-26 4 2 227 258 10.21098/jcli.v4i2.285 DIGITAL ECONOMY CHALLENGE: HIDDEN EXPLOITATION OF CHILD LABOUR THROUGH THE USE OF DIGITAL DEVICES https://jcli-bi.org/index.php/jcli/article/view/252 <p>This study focuses on child labour working hours for children aged 5-14, utilising National Labor Force Survey (Sakernas) data collected in August 2023. Specifically, it examines the impact ofthe use of digital devices on the working hours for child labourers. Applying ordinary least squares (OLS) regression to the data, our findings indicate that digital tools increase working hours by 1.12 per week, even after controlling for various explanatory variables. This effect is particularly pronounced for child workers aged 12-14. Factors such as low levels of education and employment in the service sector were identified as contributors to extended working hours for child labour. However, digital tools and the internet have become essential for everyone, including children. Therefore, reducing child labour and working hours requires a multifaceted approach involving strengthening regulations, restoring disrupted children’s education, and enhancing overall well-being.</p> Weni Lidya Sukma Kadir Ruslan Copyright (c) 2025 Journal of Central Banking Law and Institutions https://creativecommons.org/licenses/by-nc-sa/4.0 2025-05-26 2025-05-26 4 2 259 290 10.21098/jcli.v4i2.252 SUSTAINING BATIK LASEM: GOVERNMENT POLICIES, WOMEN’S EMPOWERMENT, AND CENTRAL BANK SUPPORT https://jcli-bi.org/index.php/jcli/article/view/286 <p>This paper adopts a multifaceted approach to explore the interplay between government policies, the education system, women’s empowerment, and central bank intervention in the preservation of the Batik Lasem industry in Central Java, Indonesia. Utilising qualitative methodologies with content analysis techniques, the study addresses four key research questions: (1) protective measures for the industry; (2) educational contributions to sustainability and MSME support; (3) women’s empowerment within Batik Lasem MSMEs; and (4) the central bank’s role in market promotion and financial access. Findings reveal a complex landscape shaped by policies, the education system, entrepreneurial dynamics, and financial intervention. The study underscores the importance of collaborative efforts and strategic initiatives for fostering industry growth, cultural preservation, and gender equality. It recommends enhancing collaboration among all stakeholders, educational opportunities, gender-equitable policies, and continued support for the Batik Lasem industry. It highlights the potential for synergistic partnerships to further elevate the industry and empower its participants.</p> Tinjung Desy Nursanti Evy Steelyana Wiyarti Copyright (c) 2025 Journal of Central Banking Law and Institutions https://creativecommons.org/licenses/by-nc-sa/4.0 2025-05-26 2025-05-26 4 2 291 324 10.21098/jcli.v4i2.286 STRATEGIC FACTORS OF BANK SUSTAINABILITY: INSIGHTS FOR DEVELOPING COUNTRIES https://jcli-bi.org/index.php/jcli/article/view/420 <p>The banking sector is vital to sustainable development, yet integrating sustainability into banking strategies remains challenging, particularly in developing countries with limited resources. This study systematically reviews key strategic factors driving banking sustainability and the challenges and opportunities specific to emerging markets. The PRISMA protocol collected articles from Scopus and Web of Science (1990–2024), providing 98 content-analysis articles. The findings reveal an increasing focus on banking sustainability after adopting the UN Responsible Banking Principles in 2019. Content analysis identified six main strategic factors: organisational capital, bank specialisation capability, innovative technology capability, market capability, institutional capability, and ESG capability. These insights offer valuable guidance for bankers, policymakers, and researchers in shaping sustainable banking strategies. While limited to literature-based data, this study provides a foundation for future empirical research and context-specific applications.</p> Mal Isnaini Sri Mey Yanti Riyanto Setyo Siswanti Indra sugiyono Copyright (c) 2025 Journal of Central Banking Law and Institutions https://creativecommons.org/licenses/by-nc-sa/4.0 2025-05-26 2025-05-26 4 2 325 358 10.21098/jcli.v4i2.420 FINTECH REGULATION IN SCHOLARLY DEBATE: A BIBLIOMETRIC ANALYSIS https://jcli-bi.org/index.php/jcli/article/view/259 <p>This study used bibliometric analysis to assess 688 scientific publications on fintech regulation, which were published across 436 academic publishing outlets and authored by 1,395 scholars. Research questions were developed through the lens of bibliometric theories, e.g., performance evaluation, citation and co-citation analysis, keywords analytics, and bibliographic coupling, to investigate the most influential papers, scientific publication outlets, authors, emerging trends, and affiliated institutions related to fintech regulation. This work primarily employed R Studio and VOSviewer to analyse bibliographic data from the Scopus database. Of the findings, the most influential source for fintech regulation was Sustainability (Switzerland), the most influential author was Douglas W. Arner (Professor at the University of Hong Kong), and the foremost institution was the University of Cambridge. Furthermore, qualitative inductive analysis was performed to address timely issues from the bibliometric findings. The issues identified were fintech and banking regulation, the implications of money laundering for financial regulators, the impact of central bank digital currency (CBDC) on financial inclusion and stability, and the challenges posed by cloud technology for fintech firms. Employing quantitative bibliometric analysis and qualitative inductive reasoning offers critical novelty in evaluating academic debates on fintech regulation, providing practical implications for the regulators, academia, and industry professionals.</p> Fahmi Ali Hudaefi Copyright (c) 2025 Journal of Central Banking Law and Institutions https://creativecommons.org/licenses/by-nc-sa/4.0 2025-05-26 2025-05-26 4 2 359 386 10.21098/jcli.v4i2.259 RISK MANAGEMENT IN THE BANKING SECTOR OF MAURITIUS https://jcli-bi.org/index.php/jcli/article/view/311 <p>This study examines the factors contributing to fraud in banks, which has gained mainstream attention recently from high-value fraud events. It revolves around themes of different factors contributing to this issue, especially fraud within the banks that have gained mainstream attention in recent major value fraud events. The factors mentioned in this study are pressure, opportunity, and rationalisation, which are elements of the fraud triangle theory. For this study extension, internal management factors have also been included, including internal audit activities, top management support, and risk management. Data was collected from 160 bank officers from the top 10 banks in Mauritius, and the results were analysed. The main outcome suggests that bank officers are not tempted or willing to commit fraud if their remunerations are satisfactory, and internal management factors play an important role in detecting and preventing banking embezzlement. This study provides insight and awareness of internal banking threats and how to enhance the banking system.</p> Yuvraj Sunecher Nitisha Saiswari Dookhy Copyright (c) 2025 Journal of Central Banking Law and Institutions https://creativecommons.org/licenses/by-nc-sa/4.0 2025-05-26 2025-05-26 4 2 387 402 10.21098/jcli.v4i2.311