The Impact of Regulation on Islamic Financial Institutions Toward the Monopolistic Practices in the Banking Industrial in Aceh, Indonesia
Abstract
The ratification of Aceh regulation (Hereafter called Qanun) Number 11 of 2018 concerning Islamic Financial Institutions (Hereafter called Qanun LKS) has provided special rights for Islamic banking institutions, while non-Islamic banking institutions are not permitted to run their business in the province. At the same time, the central Government also decided to merge three state-owned Islamic banks, namely BNI Syariah, BRI Syariah, and Mandiri Syariah, to become Bank Syariah Indonesia (BSI). These policies have potentially violated Law on Antitrust, especially in Aceh Province. This article aimed to analyze whether the local Government's policy in enacting the Qanun LKS and consolidating the BSI is part of monopoly practices and unfair business competition in the banking sector in the Aceh region. This research was classified as normative qualitative research, where data was obtained from secondary sources, such as laws, books, journals and related studies. The results showed that the enactment of Qanun LKS has restricted conventional banking from expanding its business in the region. In addition, the Government’s policy to consolidate three state-owned Islamic banks, which control more than seventy-five of the market share in Aceh province, was considered contrary to the law on the Prohibition of Monopolistic Practices and Unfair Business Competition Number 5 of 1999.
References
Aziz, A. (2019). Ekonomi Politik Monopoli. Airlangga University Press.
Balk, L., Dijk, F. V., Kortlang, D., Gaastra, F., Niemeijer, H., & Koenders, P. (2007). The Archives of the Dutch East India Company (VOC) and the Batavia (Jakarta) Local Institutions. BRILL.
Damanik, K. I., Lubis, E., Siregar, T. R., Nilasari, I., Khairuddin, A., Mufti, N., Siswoyo, G., & Ningsih, S. (2010). Otonomi Daerah, Etnonasionalisme, dan Masa Depan Indonesia: Berapa Persen Lagi Tanah dan Air Nusantara Milik Rakyat. Yayasan Pustaka Obor Indonesia.
Djolov, G. G. (2014). The Economics of Competition: The Race to Monopoly. Routledge.
El-Gamal, M. A. (2006). Islamic Finance: Law, Economics, and Practice. Cambridge University Press.
Ezrachi, A. (2021). Competition and Antitrust Law: A Very Short Introduction. Oxford University Press.
Fahmi, C. (2012). Revitalisasi Penerapan Hukum Syariat di Aceh (Kajian terhadap UU No. 11 Tahun 2006). Tsaqafah, 8(2), 295–310.
Findi, M. (2019). Negara dan Kebijakan Persaingan Usaha: Ekonomi Politik Tataniaga Industri Tepung Terigu. PT Penerbit IPB Press.
Friedman, J. (1983). Oligopoly Theory. CUP Archive.
Hardin, R. (2003). Liberalism, Constitutionalism, and Democracy. Oxford University Press.
Hastiadi, F. F., & Nagara, G. (2023). Celoteh Kebijakan. Universitas Indonesia Publishing.
HL, A. (2016). Modern Economics: An Analytical Study, 20th Edition. S. Chand Publishing.
Law Nomor 5 of 1999 Concerning Prohibition of Monopolistic Practices and Unfair Business Competition, no. 5 (1999). https://www.google.com/search?q=law+of+monopoly+in+indonesia&oq=law+of+monopoly+in+indonesia&aqs=chrome..69i57j33i160j33i22i29i30.11577j1j7&sourceid=chrome&ie=UTF-8
Jiuhardi. (2022). Ekonomi Pancasila Dalam Menghadapi Era Industrialisasi. Cipta Media Nusantara.
McConville, M. (2007). Research Methods for Law. Edinburgh University Press.
Mosca, M. (2018). Monopoly Power and Competition: The Italian Marginalist Perspective. Edward Elgar Publishing.
Musson, A., & Stebbings, C. (2012). Making Legal History: Approaches and Methodologies. Cambridge University Press.
Nadia, S., Ibrahim, A., & Jalilah, J. (2019). Analisis Hambatan Pertumbuhan Perbankan Syariah di Indonesia (Kajian Terhadap Perbankan Syariah di Aceh). Jihbiz: Global Journal of Islamic Banking and Finance., 1(2), Article 2. https://doi.org/10.22373/jihbiz.v1i2.8575
Nuraini, I. (2016). PENGANTAR EKONOMI MIKRO. UMMPress.
Undang-Undang tentang Pemerintahan Aceh, No. 11 of 2006 (2006). https://parlemen.net/?tfd_uu=uu-tentang-pemerintahan-aceh
Ramadhan, A. (2022). Ini Kantor Cabang dan Kantor Cabang Pembantu BSI di Aceh yang Buka Saat Cuti Bersama Idul Fitri. Serambinews.com. https://aceh.tribunnews.com/2022/04/30/ini-kantor-cabang-dan-kantor-cabang-pembantu-bsi-di-aceh-yang-buka-saat-cuti-bersama-idul-fitri
Ramos, J. M. (2020). Firm Dominance in EU Competition Law: The Competitive Process and the Origins of Market Power. Kluwer Law International B.V.
Salim, A. (2015). Contemporary Islamic Law in Indonesia. Edinburgh University Press.
Sjahdeini, S. R. (2018). Perbankan Syariah: Produk-produk dan Aspek-Aspek Hukumnya. Kencana.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms: (1) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License (CC-BY-SA) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal; (2) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal; (3) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
