Strengthening the Managerial Roles of Bank Indonesia as a Lender of Last Resort in Facing National Economic Uncertainty

Abstract

Indonesia is currently in uncertainty regarding national economic development. The government has taken various preparatory steps to prevent negative impacts on the national economy. However, these efforts still need to be supported by law to provide certainty for policymakers in carrying out their duties and authorities, including Bank Indonesia (BI) as Lender of Last Resort (LoLR). This research explores, discovers, and analyzes legal issues related to BI's role as LoLR in overcoming the economic crisis. Methodologically, this analysis uses normative legal research methods with a conceptual approach and a statutory approach in building its arguments. The findings show the need to strengthen legal certainty regarding BI's authority as LoLR. This includes a Government Regulation instead of Law followed up by issuing a Joint Decree between the Minister of Finance, BI, and Law Enforcement Institutions.