Bailout to Bail-in: An Effort to Overcome The Financial Crisis in Indonesia

DOI

10.2991/icebess-18.2019.16How to use a DOI?

Keywords

bailout, bail-in, bank indonesia, government, law, purpose

Abstract

Bailout is an alternative in handling the financial crisis. The fundamental purpose of bailout policy is for the public interest. This research purposed to find out why the bail-in mechanism replaced the bailout mechanism, an alternative to handling the financial system crisis in Indonesia. In this normative research, the secondary data were used. In order to analyze the data, qualitative data analysis technique was implemented. In conclusion, this research found out that bailout in Indonesia in the case of Bank Indonesia Liquidity Assistance (BLBI) and Century Bank showed bad impacts of bailout implementation mechanism. Based on Law on Prevention and Mitigation of Financial System Crises (UU PPKSK) and its implementing regulation, the systemic bank was now obliged to solve financial problems with its own effort in accordance with action plan they made. This mechanism is called the bail-in mechanism, replacing the bailout policy mechanism in handling the financial crisis in Indonesia.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Theresia Anita Christiani
AU  - Kastowo Kastowo
PY  - 2019/04
DA  - 2019/04
TI  - Bailout to Bail-in: An Effort to Overcome The Financial Crisis in Indonesia
BT  - Proceedings of the International Conference of Ethics on Business, Economics, and Social Science (ICEBESS 2018)
PB  - Atlantis Press
SP  - 93
EP  - 97
SN  - 2352-5398
UR  - https://doi.org/10.2991/icebess-18.2019.16
DO  - 10.2991/icebess-18.2019.16
ID  - Christiani2019/04
ER  -