Universitas Islam Indonesia

UII Law Graduate Program Discuss FSA and Sharia Banking Prospects E-mail
Friday, 06 April 2012

ImageThe emergence of the Financial Services Authority (FSA) is basically an effort to implement the activities in the financial services sector which is grown in fair, transparent and accountable service. In addition, The existing of FSA intended for growing the stable financial system. Hence, FSA is able to protect the interests of consumers and society. However, the emergence of FSA in Indonesia still remained any weaknesses stated in some articles of Law concerning Financial Services Authority.

This statement was stated by the Deputy Governor of Bank Indonesia, Dr. Halim Alamsyah, SE., SH., MA., when opened Introductory Lecture of Master Program Faculty of Law (FH) UII. Located at UII Cik Di Tiro campus, this event was followed by discussion entitled "The Existence of Financial Services Authority (FSA) and the Prospect of Sharia Banking" on Thursday (5/4). Halim who was the alumnae of Faculty of Economics UII mentioned that Law concerning Financial Services Authority in Indonesia did not included and regulated Sharia banking system specifically. Therefore, Sharia banking system was not covered in the organizational structure of Financial Services Authority.

Furthermore, Dr. Halim Alamsyah outlined, Financial Services Authority had implications toward Bank Indonesia and FSA concerning the distribution of their role in supervising Bank institutions in Indonesia. "As a result of the emergence of FSA, Bank Indonesia is now only having authority in microprudential regulation. Besides, macroprudential regulation is handled by FSA". He added.

Meanwhile, Secretary of Master Program Faculty of Law, Drs. Triyanta Agus, MA., MH., Ph.D was worried about the emergence of FSA since this regulation would cause clash of authority between several state agencies. "There will any possibility of a conflict of interest between BI and FSA.” He said.

Previously, the authority in banking supervision was under the control of Bank Indonesia. However, after FLA was released, BI’s authority must be limited. He argued this conflict can be avoided if there is any personal communication and synergy between two institutions.

He added that the absence of explicit notion of Syaria banking system on Law concerning FSA signifies that Indonesian government have a little interest in supporting the development of Islamic banks. However, if the acquisition of BI’s authority in supervising Bank was conducted consistently, FSA would gain many supports. For this reason, there must be effort to oversee these institutions, so that there would no abandonment of the Islamic financial industry in Indonesia.




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