Transformation of Additional Bank Indonesia'scapital Adequacy Ratio (Car) into State Collecting Rights Blbi
Journal Title: International Journal of Social Science And Human Research - Year 2024, Vol 7, Issue 04
Abstract
The escalation of the monetary crisis in 1997/1998 had an impact on the banking industry in Indonesia, most of the banking industry ran out of money (bokek) so that the existence of banks became insolvent banks. Bank Indonesia, which functions as the last monetary gateway, issued monetary policy with the Liquidity Assistance Fund (BLBI) scheme, which was a bailout fund for Bank Indonesia for insolvent banks affected by the 1997/1998 monetary crisis. Bank Indonesia 's liquidity assistance scheme to obligors ( recipients ) has resulted in Bank Indonesia 's capital adequacy ratio ( CAR ) . Bank Indonesia's Capital Adequat Ratio (CAR) is in free fall. Bank Indonesia is undercapitalized. The government covered Bank Indonesia's lack of capital, not with cash and in full, but with government bonds (SUN), the nominal value of this SUN is equivalent to the amount of BI Liquidity Assistance (BLBI) provided by Bank Indonesia to obligors. SUN is subsequently used by Bank Indonesia as a means of Bank Indonesia's Capital Maintenance Notes (CMN). The Capital Maintenance Notes are then compensated with the transfer of the claim rights (cessie) to the obligor (the BLBI receiving bank), by Bank Indonesia, to the Government. BLBI, which was originally a monetary policy, turned into fiscal policy, changed the legal status of BLBI collection rights, became a government asset in the form of state receivables, but historically the settlement costs which also used SUN have come down short. Fiscal policy, regarding the settlement of collection rights (cessie) turned out to be more expensive than the total collection rights (cessie), on the other hand, with the maturity of government bonds (SUN) used as a CMN facility, resulting in a sustainable government burden, at least this burden continues for up to five presidents and will continue in the administrations of subsequent presidents. This paper study uses a normative approach which is expected to be able to answer the epistemological problems of the theme of this article, which is entitled Transformation of the Addition of the Capital Adequacy Ratio (Car) of Bank Indonesia into BLBI State Collection Rights.
Authors and Affiliations
Agus Pandoman
Keywords
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- EP ID EP733656
- DOI 10.47191/ijsshr/v7-i04-05
- Views 16
- Downloads 0
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