TUGAS

ENGLISH

TENTANG DEREGULATION

Di Susun Oleh :

SUGIE ARMEI EKA SAPUTRA

WELFINA PUTRI
AYU ARINI

PRODI : TEKNIK INFORMATIKA

SEKOLAH TINGGI TEKNIK IBNU SINA BATAM

2017
1. give some examples of deregulation in Indonesia

A. June 1, 1983
This deregulation policy is issued by the government for the monetary sector, especially
banking. In this deregulation there are three things:
Increased competitiveness of state banks.
Removal of credit limit.
Deposit time deposits.
With the deregulation, state banks are higher at 18% while state banks account for
14-15%. This is so that people who have unused funds become interested to get funds in
government banks.
In addition, the elimination of Bank Indonesia intervention on credit distribution, create
Certificates of Bank Indonesia (SBI) and Money Market Securities (SBPU). The rules are
so that the interests of society in the banking sector is stimulated.

B. October 27, 1988 (Pakto 88)

This deregulation package is the most liberal rule provided by the government in the
banking sector. The policies provided by the government include:
Encourage the expansion of financial and banking networks throughout Indonesia as
well as diversification of funds.
Ease of establishment of new private banks, opening of new branches, licensing
issuance of certificates of deposit for non-bank financial institutions, and expansion
of savings.
The decrease of mandatory minimum liquidity from 25% to 2%.
Completion of open market operation.
An example is only with a capital of 10 billion rupiah a businessman with experience or
no experience as a banker can establish a new bank. In addition, the old foreign banks
and new banks were also allowed to open branches in six cities.
Form of joint venture between foreign banks with national private banks is permitted.
Thus, the monopoly of state-owned funds by state-owned banks was abolished.
Meanwhile, to establish a community credit bank, the required capital is only 50 million
rupiah. Then some banks in Indonesia become foreign exchange banks because the
requirement to become the bank is light.

C. February 1991 (Paktri)

The government issued this deregulation policy package which is a continuation of Pakto
88. The contents are as follows
Regulation of banking arrangement with prudential principle.
Supervision and credit guidance is done in order to realize a healthy and efficient
banking system.
Separate between bank ownership and professional bank management.
The increasing number of banks in Indonesia since the advent of Pakto 88 has made the
search competition for labor, the mobilization of deposit and savings funds high. As
banks continue to push for profits, security in the channeling of funds becomes neglected
resulting in bad loans. This led to the start of the process of banking globalization. One of
 its tasks is to manage the restrictions and binding of banking requirements by requiring
the fulfillment of minimum mermodalan requirement of 8 percent of the wealth. It is
expected that the improvement of banking quality in Indonesia so that there will be no
case of collapse of Bank Perbankan Asia, Bank Duta and Majapahit Commercial Bank.

D. May 29, 1993 (Pakmei)

This deregulation package deals with several things, namely:
Streamline banking credit for the business world.
Encouraging credit expansion based on sound credit principles, encouraging banks to
deal with the problem of non-performing loans, controlling growth in money supply
and banking credit within safe limits for economic stability.
CAR (Capital Adequacy Ratio) / capital adequacy ratio is loosened.
The declaration of the concept of prudence on the management of banks that
emphasizes on the quality of credit through the reassessment of earning assets of
banks in Indonesia.
With the increase in CAR, banks will be more flexible to provide credit. In addition, the
government also simplifies the provision of LDR (Loan Deposit Ratio) or lending to third
parties. With this provision, banks are only given 20% to distribute credit to their own
group.

E. July 7, 1997
This deregulation package is followed by a Government Regulation (PP) on tax and levy
penisation and lending restrictions by banks for land procurement and processing.
The government banned commercial banks in Indonesia to provide new credits for land
procurement and processing. In other words, commercial banks are not allowed to give
credit to developers to open new land, except for simple home (RS) and very simple
home (RSS).

Conclusions:
Some of the above government deregulation packages issued by the government generally
aim to increase the role of banks in the Indonesian economy, making it easier for Indonesians
to raise funds in banks. In the package is also seen the ease given by the government to
entrepreneurs in establishing banks so that banks can be known to the wider community in
Indonesia. But as a result of the sharp increase in the number of Indonesian banks, security
has been neglected and caused bad loans and the government has re-created the deregulation
package to deal with it.

2. What are the effects of economic liberalization ?

Indonesia is one of the countries that support trade liberalization, even since the New Order
era, Indonesia has a liberal and pro-market economic orientation. This can certainly have a
positive and negative impact.
Economist Institute for Economic and Financial Development (Indef), Ahmad Erani Yustika
said one positive impact of economic liberalization. But, according to him should not trade
liberalization is not as smooth as imagined, because most countries.

"The impact there is the process of exclusion, there is exclusion of certain economic actors
who thrown due to the liberal," said Erani in Jakarta, Wednesday (18/3).

Further he said he, economic liberalization can harm each other if it is not true properly. He
pointed out, the traditional market has decreased to minus 8 percent every year. "The growth
of modern market from 2007-2011 did increase to 8.000 pes," he said.

He also said it would be natural if foreign capital investment (PMA) in Indonesia reached
USD30 billion every year. "We do not have the guts, Bank Indonesia (BI) is most willing."

For that, according to him there must be fiscal policy that can overcome liberalization in
Indonesia, wrong with progressive increase. However, he said, obedience must be. "For
Taxpayer Registration Number (NPWP), the tax paying agency is only 14 percent, private
NPWP is 35 percent, and if it goes up we pursue 75 percent, our tax ratio can be at the level
of 14 percent,
 DAFTAR PUSTAKA

https://www.scribd.com/doc/282641762/Paket-Deregulasi-Perbankan#

http://indef.or.id/dampak-positif-dan-negatif-liberalisasi-ekonomi-menurut-ekonom-indef/