Print ISSN: 2288-4637 / Online ISSN 2288-4645 doi:10.13106/jafeb.2021.vol8.no3.0655
The Effect of Legal Political Determination of Perpu Number 1 of 2020 on Financial Markets in Indonesia During the COVID-19 Pandemic
Blucer Welington RAJAGUKGUK
1, Muhammad NAJIB
2Received: August 20, 2020 Revised: January 25, 2021 Accepted: February 03, 2021
Abstract
The purpose of this research paper is to overcome the impact the COVID-19 in Indonesia, the Government of the Republic of Indonesia has set Perpu No.1 of 2020 concerning State Financial Policies and Financial System Stability for Handling COVID-19 Pandemic. This paper uses a descriptive analysis method with a normative juridical approach, namely by explaining the politics of law in the stipulation of Perpu No. 1 of 2020 into Law, then analyzing its effect on the character of legal products contained in the Act. The data sources used in this paper are the 1945 Constitution of the Republic of Indonesia, Perpu Number 1 of 2020 which has been ratified into Law Number 2 of 2020, Legislation in the field of state finance, literature books, and several articles from print and electronic media. This paper concludes that the legal politics of establishing Perpu No.1 of 2020 into Act was born from a democratic political system and configuration, but the character of its legal products was conservative. The aim of the paper is to focus on the discussions related to the new regulations that have been made by the Indonesian government and analyse the impact resulting from the enactment of these regulations.
Keywords : Legal Politics, State Finance, COVID-19, Law JEL Classification Code: K15, K23, G18
on March 11, 2020, the World Health Organization (WHO) declared Covid-19 as a Global Pandemic.
The spread of Covid-l9 carries risks to public health and has even claimed lives for those infected in various parts of the world. The Covid-19 pandemic has also significantly disrupted economic activity and has major implications for the economy of most countries around the world, including Indonesia. To overcome its impact in Indonesia, on March 31, 2020 the Government of the Republic of Indonesia issued Government Regulation in Lieu of Law (Perpu) Number 1 of 2020 concerning State Financial Policies and Financial System Stability for Handling Covid-19 Pandemic and / or In the Context of Facing Threats Harm National Economy and / or Financial System Stability. Furthermore, the President of the Republic of Indonesia declared Covid-19 pandemic as a Non-National Disaster with Presidential Decree Number 12 of 2020 dated April 13, 2020 (Presidential Decree Number 12 of 2020).
Perpu No. 1 of 2020 contains several legal norms whose material content is divided into issues of state financial policy, taxation and financial system stability policies. The issuance of Perpu No. 1 of 2020 had caused controversy among the people, because it was considered to be in conflict with the constitution and in disharmony with other laws. In addition,
1
First Author and Corresponding Author. Head, Main Directorate of Development and Development of State Financial Audit Law, State Audit Board of the Republic of Indonesia, Indonesia [Postal Address: Jl. Jenderal Gatot Subroto No. 31, Central Jakarta, 10210, Indonesia] Email: blucerwelington.bpk.jp@gmail.com
2
Staff of the Main Directorate of Development and Development of State Financial Audit Law, State Audit Board of the Republic of Indonesia, Indonesia. Email: muhammadnajib.bpk.jp@gmail.com
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