THE IMPLICATIONS OF ASEAN BANKING INTEGRATION FRAMEWORK (ABIF) TO INDONESIA BANKING LAW REFORM
Abstract
ASEAN Economic Community (AEC) is the ultimate goal of economic integration. This agreement
will make ASEAN into a single market and products based that will make ASEAN more dynamic and
competitive. In 2020, ASEAN has the sole purpose of achieving the integration of the financial sector this
is known as ASEAN Banking Integration Framework. The main problem is how the infrastructure
readiness Indonesian banking law to use the opportunity and compete in order ABIF purposes and how
the banking regulation to encourage national banks to meetthe criteria of Qualified ASEAN Banks? The
results showed, required regulations that provide convenience for national banks to meet QAB through
mergers and consolidation; Indonesia still has to prepare a series of agreements to support bilateral
agreements with ASEAN countries, among others, related to surveillance, handling troubled banks,
confidentiality or the exchange of information between the Bank and the human resources and other
national interests that must be negotiated in bilateral agreements based on the principle of reciprocity.
ABIF agreement made Indonesia need to remap all regulations relating to the implementation ABIF,
including synchronization and harmonization of banking regulation with regional and global policies
such as AEC agreement, ABIF and Basel Core as well as the guidelines issued by the global banking
authority.