House’s Commission XI member Mukhamad Misbakhun testifying virtually at the material judicial review hearing of Article 12A paragraph (1) of Law No. 10 of 1998 on Banking (9/6/2021). Photo by Humas MK/Ifa.
Wednesday, June 9, 2021 | 18:54 WIB
JAKARTA, Public Relations—The Constitutional Court (MK) held another material judicial review hearing of Article 12A paragraph (1) of Law No. 10 of 1998 on the Amendment to Law No. 7 of 1992 on Banking on Wednesday, June 9, 2021. The hearing for case No. 102/PUU-XVIII/2020 had been scheduled to hear the Government and the House (DPR).
At the hearing chaired by Chief Justice Anwar Usman, House’s (DPR) Commission XI member Mukhamad Misbakhun said that microcredit banks (BPR) may take over collaterals to settle nonperforming loans through auctions. He believes that the Ministry of Finance (MoF) regulates that financial service institutions—commercial banks or microcredit banks—can purchase collaterals through auctions as stipulated in Article 79 of the Regulation of the Minister of Finance No. 213/PMK.06/2020 concerning auction guidelines.
“Article 79 paragraph of the Regulation of the Minister of Finance No. 213/PMK.06/2020 stipulates that financial service institutions as creditors may purchase collaterals through auctions insofar as it is regulated in and not in conflict with statutory regulations,” he said virtually.
Misbakhun said that the regulation doesn’t put a limit on what the phrase financial service institutions entail. He added that commercial banks and microcredit banks are on equal footing in taking over the collaterals of customers with nonperforming loans through auctions.
“There is no difference to the two types of banks in taking over collaterals,” he said. He added that although Article 12A paragraph (1) of the Banking Law isn’t necessarily intended for microcredit banks, they may purchase part of or an entire collateral.
Not Constitutionality Issue
Misbakhun’s statement was echoed by the MoF’s Secretary-General Heru Pambudi, who relayed the Government’s statement. He said that collateral takeover by commercial banks has the same philosophy as that by microcredit banks.
In addition, he said that the issue is a matter of implementation, which can be settled by issuing a procedure to achieve mutual understanding. He added that it a letter from the Directorate General of State Assets Management (DJKN) has stressed that the Petitioner doesn’t face a constitutionality issue.
Also read: Petitioner of Banking Law Revises Petition
Executive director of PT Bank Perkreditan Rakyat (BPR) Lestari Bali, Pribadi Budiono, filed the petition to challenge Article 12A paragraph (1) of the Banking Law, alleging that the provision allows only commercial banks to take over the collateral of bad credit customers.
At the preliminary hearing, the Petitioner claimed to have suffered loss due to the enactment of the phrase “Commercial Banks” in the Banking Law, as it allows only commercial banks to take over the collaterals of customers with nonperforming loans through auctions. Meanwhile, microcredit banks (BPR) do not have this right. Therefore, the Petitioner feels he has received discriminatory treatment and injustice in obtaining equal opportunity and benefits for equality and justice that commercial banks receive in taking over its customers’ collaterals of through auction to settle their nonperforming loans.
Writer : Utami Argawati
Editor : Lulu Anjarsari P.
PR : Andhini S. F.
Translator : Yuniar Widiastuti (NL)
Translation uploaded on 6/10/2021 13:48 WIB
Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian version, the Indonesian version will prevail.