Harmonizing the Statutory Authorities of the Indonesia Deposit Insurance Corporation, the Financial Services Authority, and the Minister of Finance in the Administration of the Policyholder Protection Scheme
DOI:
https://doi.org/10.58812/wslhr.v4i04.3042Keywords:
Indonesia Deposit Insurance Corporation, Financial Services Authority, Minister of Finance, Policyholder Protection Scheme, Legal Harmonization, Financial System StabilityAbstract
The enactment of Law Number 4 of 2023 on Financial Sector Development and Strengthening (P2SK Law) significantly expands the statutory mandate of the Indonesia Deposit Insurance Corporation (LPS) by assigning responsibility for administering the Policyholder Protection Scheme (PPS). This reform seeks to strengthen policyholder protection and reinforce the stability of Indonesia's financial system. Nevertheless, the implementation of the PPS raises legal concerns regarding the allocation and coordination of authority among the LPS, the Financial Services Authority (OJK), and the Minister of Finance. This study aims to examine the statutory distribution of powers, identify potential regulatory overlaps and normative inconsistencies, and formulate an integrated model for institutional harmonization. Employing normative legal research with statutory, conceptual, comparative, case, and analytical approaches, the study analyzes relevant legislation governing financial regulation and insurance supervision. The findings reveal that although the P2SK Law provides a stronger legal framework for policyholder protection, the absence of comprehensive implementing regulations and clearly defined coordination mechanisms may undermine legal certainty and institutional effectiveness. This article proposes an Integrated Authority Harmonization Model (IAHM) based on the principle of single function–single responsibility, supported by integrated data-sharing, an early warning system, crisis management protocols, and a permanent inter-agency coordination mechanism under the Financial System Stability Committee (KSSK). The proposed model is expected to enhance regulatory coherence, strengthen policyholder protection, and promote financial system stability.
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