Legal Authority of the Indonesia Deposit Insurance Corporation in Executing Cassation Decision No. 61 K/Pid.Sus/2016 Under Law No. 24/2004
DOI:
https://doi.org/10.26532/73kq6884Keywords:
Bank Liquidation, Cassation Decision, Depositor Protection, Failed Bank, Legal AnalysisAbstract
This study aims to analyzes the status and authority of the Indonesia Deposit Insurance Corporation regarding the implementation of Cassation Decision Number 61 K/Pid.Sus/2016 and its relationship with Law of the Republic of Indonesia Number 24 of 2004 concerning the Indonesia Deposit Insurance Corporation. The study employs a normative-juridical method utilizing statutory and case-based approaches, with analysis conducted through a descriptive-qualitative lens. The research focuses on the legal consequences of a cassation decision that has attained permanent legal force and the scope of LPS’s authority in protecting depositors, particularly during bank failure and liquidation processes. The findings indicate that a cassation decision possessing permanent legal force is, in principle, enforceable, notwithstanding the availability of an extraordinary legal remedy in the form of a judicial review. Regarding depositor protection, LPS guarantees deposits subject to the limits and requirements stipulated in Law Number 24 of 2004. Non-guaranteed deposits are repaid through liquidation proceeds, with legal action available if recovery is insufficient. This study underscores the importance of exercising LPS’s authority in a manner consistent with the principles of legal certainty, depositor protection, and the governance of failed bank resolution.
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