Review of Digital Bank Law in Indonesia: Challenges in the Digital Era

Abstract

This research aims to conduct a legal review of the development of digital banks in Indonesia, with a focus on the challenges and opportunities faced by this sector. Digital banks are the latest innovation in the financial sector that combines digital technology with traditional banking services. In the Indonesian context, the growth of digital banks has reached significant levels in recent years, changing the banking landscape as a whole. This research uses notmatic legal analysis methods and literature studies to explore legal issues related to digital banks, such as applicable regulations, consumer protection, and tax implications. From the research results, it was found that the regulations regarding digital banks in Indonesia have been stipulated in the Financial Services Authority Regulation (POJK) Number 12/POJK.03/2021 concerning Commercial Banks. Furthermore, in order to complete the provisions for digital banks, the OJK has also successively issued POJK Number 13/POJK.03/2021 concerning the Implementation of Commercial Bank Products and POJK Number 14/POJK.03/2021 as an Amendment to POJK Number 34/POJK.03/2018 concerning Assessment Again, the Main Parties are Financial Services Institutions, where in essence these regulations regulate in detail the digital banking law in Indonesia which is still guided by banking law. Research also shows that the development of digital banks in Indonesia is accompanied by a number of challenges, the need to maintain a balance between innovation and security in the digital banking business model, must be prudent and sustainable, have adequate information technology capabilities for bank managers or leaders, effective risk management, protection customer data, as well as the role of digital banks in financial inclusion.