JURNAL HUKUM
Vol 41, No 3 (2025): Jurnal Hukum

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

Diana R.W. Napitupulu (Universitas Kristen Indonesia, Indonesia)
Mohammad Belayet Hossain (Curtin University Malaysia, Malaysia)
Bahrullah Akbar (Institut Pemerintahan Dalam Negeri, Indonesia
Bank Syariah Nasional, Indonesia)



Article Info

Publish Date
10 Oct 2025

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.

Copyrights © 2025






Journal Info

Abbrev

jurnalhukum

Publisher

Subject

Religion Humanities Social Sciences

Description

The aims of this journal is to provide a venue for academicians, researchers and practitioners for publishing the original research articles or review articles. The scope of the articles published in this journal deal with a broad range of topics, including: Criminal Law; Civil Law; International ...