The petition revision hearing of the judicial review of Law No. 21 of 2008 on Sharia Banking, Tuesday (4/19/2022). Photo by Humas MK/Bayu.

---

Tuesday, April 19, 2022 | 11:19 WIB

JAKARTA, Public Relations—The Constitutional Court (MK) held another hearing for the material judicial review of Law No. 21 of 2008 on Sharia Banking on Wednesday, April 19, 2022. The case No. 32/PUU-XX/2022 was filed by PT Bank Pembiayaan Rakyat Syariah Harta Insan Karimah Parahyangan (BPR Syariah HIK Parahyangan), a sharia microcredit bank (BPR).

At the hearing chaired by Constitutional Justice Wahiduddin Adams, the Petitioner’s legal counsel Ahmad Wakil Kamal conveyed the revisions to the petition. Article 9 paragraph (2) letter a and Article 14 paragraph (1) of the Sharia Banking Law had been removed from the petition. The Petitioner had also simplified the legal bases for the legal standing following the justices’ advice at the preliminary hearing.

“We have also included Article 12 paragraph (1) and paragraph (2) of the amended deed of establishment of the Petitioner, in which the executive director shall act on behalf of PT Bank Pembiayaan Rakyat Syariah Harta Insan Karimah. Based on the deed No. 52 dated July 30, 2021, Martadinata is the executive director of PT Bank Pembiayaan Rakyat Syariah Harta Insan Karimah Parahyangan (BPR Syariah HIK Parahyangan),” Kamal explained.

He also conveyed the revision to the argument for constitutional impairment. The Petitioner reconstructed the argument on specific, actual, or at least potential constitutional impairment. In relation to the background of the petition, the Petitioner also showed the differences between sharia microcredit banks and sharia commercial banks.

Also read: Sharia Microcredit Banks Requests Equality in Payment Financial Traffic Services 

The case No. 32/PUU-XX/2022 was filed by PT Bank Pembiayaan Rakyat Syariah Harta Insan Karimah Parahyangan (BPR Syariah HIK Parahyangan), a sharia microcredit bank (BPR), who challenges Article 1 point 9, Article 13, Article 21 letter d, and Article 25 letters b and e of the Sharia Banking Law. They argued that Article 1 point 9, Article 21 letter d, and Article 25 letter b of the Law had restricted or prohibited sharia microcredit banks from offering payment traffic services. Article 21 letter d stipulates that sharia microcredit banks cannot transfer money, either for their own interest or for the benefit of customers independently, but only through their accounts at sharia commercial banks, conventional commercial banks, and sharia business units (UUS).

At the preliminary hearing on Wednesday, April 6, legal counsel Ahmad Wakil Kamal asserted that restrictions and prohibitions on providing payment traffic services keep sharia microcredit banks from optimally providing banking services to the public, especially to micro and small businesses to encourage sustainable national economic growth. Furthermore, he said, Bank of Indonesia (BI) established a National Payment Gateway (GPN) policy aimed at smooth, safe, efficient, and reliable national payment system, and at taking into account the increasing, competitive, and integrated developments in information, communication, technology, and innovations.

Article 1 point 9, Article 21 letter d, and Article 25 letter b of the Sharia Banking Law have resulted in sharia microcredit banks unable to be directly connected to the GPN policy system. The issue has positioned sharia microcredit banks subordinate to sharia commercial banks, resulting in discrimination against them, which essentially provide the same financial services to the public and run some of the same businesses as sharia commercial banks. Both of them collect funding from the public in the form of savings and offer credits to customers.

On the other hand, many non-banking companies such as financial technology (fintech) and telecommunication companies may utilize and be connected to the GPN policy system, when they share similarities with sharia microcredit banks in their business activities.

Kamal asserted that the prohibition led to additional fees charged to customers, such as BI-mandated transaction fees.

The prohibition, he said, deprives sharia microcredit banks from having other choices to add value or efficiency. It also results in difficulty in adapting and innovating with technology to offer the best services for their customers, leading their finances to an unhealthy state. In contrast, customers of conventional/sharia commercial banks are allowed tech-based payment traffic activities, which simplify transaction chain and can reduce operational costs. However, if this condition is left unchecked, it will certainly threaten the sustainability of sharia microcredit banking business. 

Writer        : Utami Argawati
Editor        : Nur R
PR            : Fitri Yuliana
Translator  : Yuniar Widiastuti (NL)

Translation uploaded on 4/19/2022 13:17 WIB

Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian versions, the Indonesian version will prevail.

---