CONVENTIONAL BANK CONVERSION ANALYSIS TO SHARIA BANKS ACCORDING TO THE FINANCIAL SERVICES AUTHORITY REGULATION
Keywords: Analysis, Conversion, Conventional Banks, Islamic Bank, Financial Fervices. Authority
OJK (financial services authority) that issues a rule about conventional banks can make changes to business activities into Islamic banks, but not vice versa. Changes must obtain permission and fulfill the requirements. After permission is obtained, it must clearly state the word "Sharia" on the writing of the name, and the iB logo on the forms, documents, products, offices, and networks of Sharia Bank offices. The legal basis is: 1). Law Number 7 of 1992 concerning Banking as amended by Act Number 10 of 1998 concerning Amendment to Law Number 7 of 1992 concerning Banking; 2). Law Number 21 of 2008 concerning Sharia Banking; 3). Financial Services Authority Regulation Number 64 / POJK.03 / 2016 Year 2016 concerning Changes in Conventional Bank Business Activities to Sharia Banks; 4). Financial Services Authority Circular Letter Number 2 / SEOJK.03 / 2017 Year 2017 concerning Changes in Business Activities of Conventional Commercial Banks to Islamic Commercial Banks. The mechanism described above must be carried out by conventional banks that want to change business activities into Islamic banks.
Bank Indonesia, "Overview of Sharia Banking in Indonesia", www.bi.go.id, accessed July 29, 2019.
Explanation of Financial Services Authority Regulation Number 64 / Pojk.03/2016 concerning Changes in Conventional Bank Business Activities to Sharia Banks.
Financial Services Authority Regulation Number 64 / Pojk.03/2016 concerning Changes in Conventional Bank Business Activities to Sharia Banks.
Hasanah, Novia. (2017). "Procedure for Changing Conventional Bank Business Activities to Sharia Banks". Online Law. Bung Pokrol's Business and Investment. https://www.hukumonline.com/klinik/detail/ulasan/lt59cc5aa47db6f/prosedur-perganti-kaktif-usaha-bank-konvensional-menjadi-bank-syariah/, accessed July 29, 2019.
Kansil, C.S.T. and Christine S.T. Kansil, the ins and outs of limited liability companies according to Law No. 40 of 2007, (Jakarta: Rineka Cipta, 2015).
Law No. 21 of 2008 concerning Islamic Banking.
PBI No.09 / 7 / PBI / 2007 jo PBI No.8 / 3 / PBI / 2006.
Rasyid, Abdul. (2017). "Conversion of Conventional Bank Business Activities into Sharia Banks According to Ojk Regulation No. 64 of 2016 ". Binus University. https://business-law.binus.ac.id/2017/05/31/k Convert-kaktif-usaha-bank-konvensional-menjadi-bank-syariah-menurut-peraturan-ojk-no-64-tahun-2016/ , accessed July 29, 2019.
Ria, Wati Rahmi. (2004). "Conversion of Conventional Commercial Banks to Islamic Commercial Banks Based on Uu No. 10 of 1998 ". Law and Development. Number 3 Year XXXIV, 268-278.
Rongiyati, Sulasi. (2015). "Development of Islamic Banking Through the Implementation of the Obligation to Separate Sharia Business Units". State of Law, Vol. 6, No. 1, 65-78.
Sari, Prima Intan., Bachtiar, Maryati and Ghafur, Abdul. (t.th). "Conventional Bank Conversion Into a Sharia Bank Judging from Positive Law and Islamic Law". Online Journal. (29-07-2019).
Supramono, Gatot. (2016). Limited Liability Company Law. Jakarta: Djambat.
Umam, Khotibul. (t.th). Increasing Shariah Obedience through Separation (Spin-off).