JAKARTA, Public Relations of the Constitutional Court—The judicial review hearing of Law No. 40 of 2014 on Insurance was held by the Constitutional Court (MK)  on Wednesday (11/3/2020). However, the hearing was postponed because the House of Representatives (DPR) requested for additional time due to recess. The Financial Services Authority (OJK) as the Relevant Party, who had been scheduled to give a statement in response to the petition filed by the Association of Indonesian General Insurance Companies (AAUI), also requested a delay.

"The House is unable to attend because it is still in recess, while the Relevant Party the OJK asked for a delay because a letter was only received by the new Secretary of the OJK Board of Commissioners yesterday afternoon. So the session is adjourned on Monday, March 23 at 14:00 WIB to hear the statements of the House and the OJK," said Chief Justice Anwar Usman on the petition of the Petitioner, who challenges Article 5 paragraph (1) of Law No. 40 of 2014. 

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The Petitioner believes that the a quo norm states that surety business is the expansion of insurance business. Surety business is only based on the a quo norm, which authorizes the Financial Services Authority (OJK) to expand the insurance business line. The Petitioner believes it resulted in legal uncertainty. The association argued that the a quo article is unconstitutional and does not have legal force insofar as not be interpreted as “prescribing that surety business is the expansion of insurance business based on public needs.” (Sri Pujianti/Raisa/LA)

Translated by: Yuniar Widiastuti

Translation uploaded on 3/11/2020