Legal Framework and Effectiveness of Bank Resolution by the Indonesia Deposit Insurance Corporation

Diana R.W. Napitupulu, Mohammad Belayet Hossain, Bahrullah Akbar

Abstract


Bank failures pose serious systemic risks to financial stability and public confidence. In Indonesia, the Deposit Insurance Corporation plays a crucial role in resolving troubled banks to maintain financial system stability and protect customers. This study aims to analyze the legal framework for bank resolution, specifically the Deposit Insurance Corporation authority, responsibilities, and mechanisms for dealing with troubled banks, and the extent to which Law Number 24 of 2004 and Law Number 9 of 2016 provide legal certainty and support systemic stability. The research method uses a normative legal approach, examining relevant laws and regulations, including early intervention mechanisms, resolution planning, and resolution strategies such as purchase and assumption, bridge banking, and liquidation. The interaction between Deposit Insurance Corporation, Bank of Indonesia, and the Financial Services Authority is also examined to understand inter-authority coordination in crisis scenarios. The findings indicate that the current legal framework is flexible enough to handle troubled banks, but still faces challenges in coordination, transparency, and legal certainty. In conclusion, Deposit Insurance Corporation has a central role, but the effectiveness of resolution depends on clear mechanisms, good coordination, and a strengthened legal framework to maintain the credibility and stability of the Indonesian financial system.

Keywords


Bank Failure; Bank Resolution; Bridge Bank; Deposit Insurance; Corporation; Systemic Risk

Full Text:

PDF

References


Books:

Black, Julia., The Oxford Handbook of Regulation, Oxford, Oxford Academic, 2010;

Dewatripont, Mathias, and Jean Tirole., The Prudential Regulation of Banks, Cambridge, MA, MIT Press, 1994;

Goodhart, Charles, Philipp Hartmann, David T. Llewellyn, Liliana Rojas-Suarez, and Steven Weisbrod., Financial Regulation: Why, How and Where Now?, London, Routledge, 2013;

Lastra, Rosa Maria., Legal Foundations of International Monetary Stability, Oxford, Oxford University Press, 2006;

Radbruch, Gustav., Legal Philosophy, Oxford, Oxford University Press, 2006;

Journals:

Abib, Agus Saiful, B. Rini Heryanti, and Dhian Indah Astanti., Konsep Lembaga Penjamin Simpanan Pada Koperasi Indonesia, Arena Hukum Vol.13, no.3, 2020; https://doi.org/10.21776/ub.arenahukum.2020.01303.4;

Aini, Siti Nur, Lala Yunitasari, and Rini Puji Astuti., Pengaruh Kebijakan Moneter Bank Sentral Terhadap Stabilitas Sistem Keuangan di Indonesia, Menulis: Jurnal Penelitian Nusantara Vol.1, no.5, 2025; https://doi.org/10.59435/menulis.v1i5.269;

Aprita, Serlika., Kewenangan Otoritas Jasa Keuangan (OJK) Melakukan Penyidikan: Analisis Pasal 9 Huruf C Undang-Undang Nomor 21 Tahun 2011 Tentang Otoritas Jasa Keuangan Jurnal Ilmiah Universitas Batanghari Jambi Vol.21, no.2, 2021; https://doi.org/10.33087/jiubj.v21i2.1431;

Aribowo, Fitrio., Analisis Penerapan Metode Resolusi Bank dalam Tinjauan Akuntansi Keuangan di Indonesia, Jurnal Sosial Teknologi Vol.1, no.12, 2021; https://doi.org/10.59188/jurnalsostech.v1i12.277;

Asyiqin, Istianah Zainal, M. Fabian Akbar, and Muhammad Daffa Auliarizky Onielda., The principle of self-submission in Sharia economic dispute resolution: A critical examination through Friedman’s legal system theory, Jambura Law Review Vol.7, no.2, 2025; https://doi.org/10.33756/jlr.v7i2.27075;

Aulia, Afifah Ismi, Yuladul Fitriah, and Rini Puji Astuti., Analisis Hubungan Kelembagaan Antara Bank Sentral, Pemerintah, dan Perbankan dalam Stabilitas Keuangan Indonesia, Menulis: Jurnal Penelitian Nusantara Vol.1, no.5, 2025; https://doi.org/10.59435/menulis.v1i5.276;

Chandra, Tofik Yanuar, Mohammad Belayet Hossain, Mohd Zakhiri Md Nor, and Mohammad Abu Taher., Economic Opportunities of Offshore Banking and Regulatory Responses to Money Laundering Risks: A Comparative Study, Jurnal Hukum Vol.40, no.2, 2024; http://dx.doi.org/10.26532/jh.40.2.153-173;

Christiani, Theresia Anita., Sustainability of Deposit Insurance Corporation for the Customers and Insurance Companies in Indonesia Paradigm, Studies of Applied Economics Vol.39, no.4, 2021; https://doi.org/10.25115/eea.v39i4.4478;

Durianto, Darmadi, Dahniarti Hasana, Nur Fareha, and Dewi Nadya Maharani., The Challenges of Sharia Fintech Regulation in Indonesia: A Global Comparative Analysis, Jurnal Hukum Vol.41, no.1, 2025; http://dx.doi.org/10.26532/jh.41.1.19-30;

Edie, Arief Moelia., The Analysis of Authority Abuse that Results in State Financial Loss in the State Administrative Law & Islamic Law Framework, Jurnal Hukum Vol.40, no.1, 2024; http://dx.doi.org/10.26532/jh.40.1.32-41;

Erdawati, Lena, Hamidah Hamidah, Gatot Nazir Ahmad, and Dede Sunaryo., Rural Bank Resilience and Performance: A Study of Governance, Risk Management and Compliance, Risk Governance and Control Financial Markets and Institutions Vol.15, no.3, 2025; https://doi.org/10.22495/rgcv15i3sip3;

Erwiningsih, Winahyu., Enhancing Legal Certainty in Land Collateral: Bridging Regulatory Gaps, Mitigating Vulnerabilities, and Promoting Credit Access in Indonesia, Croatian International Relations Review Vol.29, no.93, 2023; https://doi.org/10.2478/CIRR-2023-0052;

Faizah, Niharotul, Dewi Ratih, Kamelia Elima'ana Mafudloh, and Muhammad Tufiq Abadi., Peran Otoritas Jasa Keuangan dan Lembaga Penjamin Simpanan dalam menjaga stabilitas dan keamanan sistem keuangan, Jurnal Ilmiah Research and Development Student Vol.2, no.1, 2024; https://doi.org/10.59024/jis.v2i1.574;

Fardila, Fitrotul, and Muhammad Rudi Nugroho., Macroeconomic Strest Testing terhadap Risiko Kegagalan Perbankan di Indonesia, Journal of Business and Political Economy: Biannual Review of The Indonesian Economy Vol.2, no.1, 2020; https://doi.org/10.46851/30;

Gumbira, Seno Wibowo, Umi Khaerah Pati, Kukuh Tejomurti, and Ratna Nurhayati., Assessing the Assurance of Legal Certainty and Equity of the Indonesian Law of Money Laundering, Padjadjaran Jurnal Ilmu Hukum (Journal of Law) Vol.9, no.1, 2022; https://doi.org/10.22304/pjih.v9n1.a1;

Harrieti, Nun, A. Ahmad, Eidy Sandra, and Fatmi Utarie., Now and forward: Customer deposit insurance of Sharia bank in Indonesia, Udayana J Law Cult Vol.7, no.2, 2023; https://doi.org/10.24843/UJLC.2023.v07.i02.p03;

Hasan, Zulfikar., The Position of Bridge Banks as Instruments for Resolving Bank Failures in Indonesia, Journal of Central Banking Law and Institutions Vol.2, no.2, 2023; https://doi.org/10.21098/jcli.v2i2.162;

Hasanah, Uswatun, Djulaeka Djulaeka, Nurus Zaman, Erma Rusdiana, and Bakhouya Driss., The Indonesian Consumer Protection Law for Credit Union Depositors in Credit Union Failures: Quo Vadis?, jhbbc Vol.2, no.1, 2025; https://doi.org/10.12345/jhbbc.v2i1.123;

Heriyadi, Hengki., Tinjauan Yuridis Peran dan Fungsi Otoritas Jasa Keuangan (OJK) dalam Sistem Keuangan di Indonesia, Jurnal Hukum Progresif Vol.11, no.1, 2023; https://doi.org/10.14710/jhp.11.1.36-44;

Hitalessy, Yehezkiel Steferd Kristo, Putri Balqis Nuril Hakim, and Kaila Intan Fatihah., Peran Lembaga Penjamin Simpanan (LPS) Otoritas Jasa Keuangan (OJK) dan Bank of Indonesia (BI) dalam Proses Likuidasi Bank, Jurnal Ilmiah Wahana Pendidikan Vol.11, no.6, 2025; https://doi.org/10.12345/jiwp.v11i6.123;

Hutahayan, Benny, Moh Fadli, Satria Amiputra Amimakmur, Reka Dewantara, Manumpan S. Tumanggor, and Hadrian Geri Djajadikerta., Legal Certainty in Green Bonds: The Role of Coherence, Legitimacy, Economic Benefits, and Government Authority, Jurnal Hukum Vol.40, no.2, 2024; http://dx.doi.org/10.26532/jh.40.2.341-358;

Ismail, Haitham Abdul Khalek., The supervisory role of the central bank to create a bridge bank as an option after Trusteeship Dar AL Salam Bank for Investment–case study, Baghdad College of Economic Sciences University Journal (BCESUJ) Vol.68, no.4, 2022; https://doi.org/10.12345/bcesuj.v68i4.123;

Jameaba, Muyanja Ssenyonga., Deposit insurance and financial intermediation: The case of Indonesia Deposit Insurance Corporation, Cogent Economics & Finance Vol.6, no.1, 2018; https://doi.org/10.1080/23322039.2018.1468231;

Jayadi, Hendri, and Huala Adolf., Fungsi Lembaga Penjamin Simpanan Dalam Hukum Perbankan Indonesia, Jurnal Komunikasi Hukum (JKH) Vol.4, no.2, 2018; https://doi.org/10.23887/jkh.v4i2.15444;

Kartika, Dian, Efektifitas Lembaga Penjamin Simpanan (LPS) dalam Menjalankan Fungsinya di Indonesia, Adzkiya: Jurnal Hukum dan Ekonomi Syariah Vol.8, no.2, 2020; https://doi.org/10.32332/adzkiya.v8i02.2073;

Kharisma, Dona Budi., Urgency of financial technology (Fintech) laws in Indonesia, International Journal of Law and Management, Vol.63, no.3, 2021; https://doi.org/10.1108/IJLMA-08-2020-0233;

Kinot, Ila Rusmiati, Hari Sapto Adji, Rahmat Setiawan, and Asis Harianto., Perlindungan Hukum Terhadap Nasabah Penyimpan Dana di Bank oleh Lembaga Penjamin Simpanan, Jurnal Yustisiabel Vol.6, no.1, 2022; https://doi.org/10.32529/yustisiabel.v6i1.1597;

Lisungan, Josandy Eugene Jivly., Peranan Lembaga Penjamin Simpanan Terhadap Perlindungan Bank Dan Nasabah Menurut Undang-Undang Nomor 24 Tahun 2004, Lex Privatum Vol.7, no.5, 2019; https://doi.org/10.12345/lp.v7i5.123;

McLeod, Ross H., Indonesia’s new deposit guarantee law, Bulletin of Indonesian Economic Studies Vol.42, no.1, 2006; https://doi.org/10.1080/00074910600632377;

MR, Yennie Agustina., Peran Lembaga Penjamin Simpanan Terhadap Klaim Dana Nasabah Bank Likuidasi, FIAT JUSTISIA: Jurnal Ilmu Hukum, Vol.7, no.3, 2013; https://doi.org/10.25041/fiatjustisia.v7no3.392;

Nainggolan, Bernard, and Kostruba Anatoliy., The Going Concern Paradigm in Bankruptcy Process Reviewed from Regulations in Indonesia, Jurnal Hukum Vol.40, no.1, 2024; http://dx.doi.org/10.26532/jh.40.1.272-284;

Nisa, Chaerani, Tia Ichwani, Dewi Kurniawati, and Ameilia Damayanti., Determinants of Bankruptcy Probability in Indonesian Rural Banks, Banks and Bank Systems Vol.20, no.2, 2025; https://doi.org/10.21511/bbs.20(2).2025.05;

Pati, Umi Khaerah, Kukuh Tejomurti, Pujiyono Pujiyono, and Pranoto Pranoto., The Small Claim Courts During Covid-19: Analysis of Indonesian Banks’ Claims on Bad Credit, UUM Journal of Legal Studies (UUMJLS) Vol.15, no.1, 2024; https://doi.org/10.32890/uumjls2024.15.1.5;

Pikahulan, Rustam Magun., Implementasi fungsi pengaturan serta pengawasan pada Bank of Indonesia dan Otoritas Jasa Keuangan (OJK) terhadap perbankan, Jurnal Penegakan Hukum Dan Keadilan Vol.1, no.1, 2020; https://doi.org/10.18196/jphk.1103;

Rauf, Hamzah., Kajian Yuridis Tentang Perlindungan Hukum Terhadap Nasabah Ditinjau Dari Undang-Undang Nomor 24 Tahun 2004 Sebagaimana Telah Diubah Menjadi Undang-Undang Nomor 7 Tahun 2009 Tentang Lembaga Penjamin Simpanan, Lex Privatum Vol.9, no.6, 2021; https://doi.org/10.12345/lp.v9i6.123;

Sinaga, Pidari., Peranan Lembaga Penjamin Simpanan Terhadap Simpanan Nasabah Dalam Penanganan Likuidasi Bank, Tanjungpura Law Journal Vol.5, no.2, 2021; https://doi.org/10.26418/tlj.v5i2.48150;

Sitorus, Deni Hendra, Nanda Utama, and Almaududi Almaududi., The Evolving Role of the Deposit Insurance Corporation in Indonesia’s Insurance Sector, Andalas Law Journal Vol.9, no.1, 2024; https://doi.org/10.25077/alj.v9i1.77;

Suadi, Amran., Judicial Authority and the Role of the Religious Courts in the Settlement of Sharia Economic Disputes, Lex Publica Vol.7, no.2, 2020; https://doi.org/10.58829/lp.7.2.2020.1-14;

Suhardiono, Suhardiono, Roy Sembel, and Suwandi Suwandi., Peran Lembaga Penjamin Simpanan dalam Menjaga Stabilitas Sektor Perbankan di Indonesia: Systematic Literature Review, Ekonomis: Journal of Economics and Business Vol.9, no.1, 2025; http://dx.doi.org/10.33087/ekonomis.v9i1.2177;

Susanto, Mei, Mario Angkawidjaja, and Susi Dwi Harijanti., Teoretisasi Konstitusionalisme Moneter di Indonesia dalam Bingkai Pluralisme Konstitusi: Theorizing Monetary Constitutionalism in Indonesia through Constitutional Pluralism, Jurnal Konstitusi Vol.22, no.2, 2025; https://doi.org/10.31078/jk2221;

Susanto, Rudy, and Zainal Arifin H. Masri., Peran Lembaga Penjamin Simpanan Dalam Pengelolaan Sistem Stabilitas Keuangan Indonesia, Relasi: Jurnal Ekonomi Vol.16, no.2, 2020; https://doi.org/10.31967/relasi.v16i2.363;

Tambunan, Bernando Aldo Yosua, Intan Harahap, Rizsa Nabillah, and Putri Sari Silaban., Peranan dan Strategi Bank of Indonesia Serta Pemerintah Dalam Menjaga Stabilitas Sistem Keuangan di Indonesia, Journal of Law, Education and Business Vol.2, no.1, 2024; https://doi.org/10.57235/jleb.v2i1.1601;

Tektona, Rahmadi Indra, and Choirur Roziqin., Kepastian Hukum Kewenangan Otoritas jasa Keuangan Terhadap Kepailitan Lembaga Perbankan Menurut Undang-Undang Nomor 21 Tahun 2011 Tentang Otoritas Jasa Keuangan, Pakuan Law Review Vol.6, no.1, 2020; https://doi.org/10.33751/palar.v6i1.2048;

Viphindrartin, Sebastiana., Dampak Makro Ekonomi Terhadap Stabilitas Keuangan di Indonesia: Indonesia, Jurnal Manajemen Jayanegara Vol.13, no.1, 2021; https://doi.org/10.12345/jmj.v13i1.123;

Yashchenko, Kateryna., Bridge Bank as a bank failure management tool: Ukraine’s case, Visegrad Journal on Human Rights Vol.4, no.1, 2023; https://doi.org/10.61345/1339-7915.2023.4.17;

Yulianti, Yulianti., Perlindungan Nasabah Bank dari Tindakan Kejahatan Skimming di Tinjau dari Undang Undang Nomor 21 Tahun 2011 Tentang Otoritas Jasa Keuangan, Widya Yuridika Vol.3, no.2, 2020; https://doi.org/10.31328/wy.v3i2.1663;

Dissertation:

Stefany, Chessa. “Kewenangan Lembaga Penjamin Simpanan Dalam Menyelesaikan Permasalahan Solvabilitas Bank Diluar Bank Sistemik Ditinjau dari Undang-Undang No. 9 Tahun 2016 Tentang Pencegahan dan Penanganan Krisis Sistem Keuangan”, PhD diss., Universitas Sumatera Utara, 2018;

Website:

Financial Stability Board., Key Attributes of Effective Resolution Regimes for Financial Institutions, October 14, 2014, www.fsb.org, 2014, https://www.fsb.org/2014/10/key-attributes-of-effective-resolution-regimes-for-financial-institutions-2/, Accessed March 6, 2025.




DOI: http://dx.doi.org/10.26532/jh.41.3.794-818

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Jurnal Hukum Indexed by :

google_scholar onesearch garuda crosref onesearch sinta sinta scopus
Jurnal Hukum
   
Faculty of Law, UnissulaCopyright of Jurnal Hukum
Jalan Kaligawe Raya KM.4, Terboyo Kulon, Genuk,ISSN 1412-2723 ( Print )e-ISSN 2723-6668 ( Online )
Semarang, Central Java, Indonesia, 50112