The National Interests and Sustainability of State-Owned Banks in Indonesia

Dian Purnamasari; Hasani Mohd. Ali; Aminurasyed Mahpop

doi:10.47405/mjssh.v7i11.1988

Dian Purnamasari Faculty of Law, University of Trisakti, Jakarta Barat, Indonesia.
Hasani Mohd. Ali Faculty of Law, The National University of Malaysia, 43600 Bangi, Selangor, Malaysia.
Aminurasyed Mahpop Faculty of Law, The National University of Malaysia, 43600 Bangi, Selangor, Malaysia.

DOI: https://doi.org/10.47405/mjssh.v7i11.1988

Keywords: State-owned banks, National interests, Banking sector, Pancasila economics, Sustainability, SDG 8, SDG 16

Abstract

State-owned Banks in Indonesia carry out supportive business activities based on economic democracy. Economic democracy is related to Pancasila Economics as enshrined under Article 33 of the 1945 Constitution. Article 33 defines the parameter of national interests in the banking sector to be consistent with the overall national interests of Indonesia. This paper examines and evaluates how State-owned Banks may sustain and play a distinctive role in protecting national interests in the banking sector. For this purpose, this paper analyses and considers some provisions that improve ordinary people’s welfare under the relevant laws as part of the strategic industry and conduct their activities according to the democratic principle of economics. The discussion employs a doctrinal approach. However, a historical analysis applies to studying past facts, events, and institutions. The paper finds that against the backdrop of open competition, State-owned Banks sustain by playing a strategic role in Indonesia’s banking sector, especially in terms of the dominance of the asset, mobilising public funds and channelling them back to the public. The success model of State-owned Banks underscores SDG 8, which promotes sustained, inclusive and sustainable economic growth, productive employment and decent work for Indonesians. At the same time, it epitomises the Indonesian way to achieve SDG 16, which promotes just, peaceful and inclusive societies based on the Constitution of Indonesia.

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