Background: The use of technology in the financial sector greatly supports its productivity. Including the use of Artificial Intelligence or Artificial Intelligence that makes activities in the financial sector faster and more efficient. PT. Bank Central Asia also implemented Artificial Intelligence technology by launching a chatbot feature called VIRA. Although this vira provides various conveniences this feature has a disadvantage of this feature is that the account can be accessed without using a pin, but only with a card number and OTP code. Aim: This research aims to look at the legal protection of the use of VIRA chatbots in BCA customers' banking activities. Method: This research is included in the type of empirical juridical legal research with library research and vira application observation. Findings: The results showed that BCA customers can only access personal data using VIRA. The main facilities of chatbot VIRA are more general information services and promotions for customers. In addition, the account is not automatically logged out, so when the phone is lost others may be able to access the account of the mobile phone owner through VIRA.
Purpose of Study: The research aimed to describe the Participatory Regional Regulation based local wisdom and to formulate the model of the participatory regional regulation in the future based on the concept of the Unitary State of the Republic of Indonesia. The regional regulations created by the local governments should involve the local community by raising the local wisdom of the respective region by considering the potential of conflict with the laws and regulations so that they will have the impunity power of being obeyed by the community since they provide impacts for the community tranquility and welfare. The differences among the regional regulation of each region are the manifestation of Bhineka Tunggal Ika, 2) The participatory regional regulation based on local wisdom is prepared for the future by accommodating the strength of society autonomy and organizations of interest by placing them in a more adequate position in the context of promoting the growth of civil society such as by providing the public with access to public information, access to participation and access to justice so that the role of society can be manifested in various forms, including the process of decision-making, management, and control. Methodology: The research method was qualitative with the empirical juridical approach. The research gives a contribution to the regional Government to ensure regional autonomy as mandated by the Constitution of 1945 can run properly. Results: The results of the discussion included: 1) the community upheaval that occurs due to the enforcement of local regulation is assumed as the decline of national democracy. Implications/Applications: The regional regulations are derived from the thought rooted in participatory approaches as the implication of the efforts to enact a democratic development model based on democracy; hence, they must be done by reforming the regulations that situate law within the community and humanity as the main focus.
The Article 68 of Law No. 21 of 2008 on Sharia/Islamic Banking has stipulated the policy of UUS Splitting (Spinoff) to the Conventional Commercial Bank in Indonesia. This study aimed at determining the effectiveness of this policy based on Friedman’s theory of legal system. It is a juridical empirical research with data collection techniques including library research, interview and observation on BNI Syariah and Bukopin Syariah as banks that had been implemented spin off. According to Friedman, three factors to examine the effectiveness of a legal instrument are the structure of law, the substance of law and the legal culture. Based on Friedman’s theory the effectiveness of spinoffin the context of Indonesia is categorized as less optimal.
In Indonesia, digital banking is advancing at a fast pace. As the law regulating it is incompatible with the current digital banking, it is necessary to establish new law capable of adapting to the development of digital banking because of the high number of digital account break-ins experienced by customers due to a lack of adequate regulations such as the law governing digital banking. Since digital banks are regulated in the Financial Services Authority (FSA) regulations, they have been unable to address risk issues due to insufficient binding force. This study employed a normative approach by collecting data: library research and discussions. The study's findings indicate the governance of digital banks has flaws: vulnerability to identity theft, online crime, malware assaults, and the inability in accessing by all parties. Regulations governing personal data protection are largely outlined in Article 26 of Law No. 19 of 2016. This rule does not go into depth about personal data security in digital banking governance, thus it can lead to multiple interpretations. Subsequently, Law No. 10 of 1998 on financial is a banking regulation based on conventional not digital. Therefore, these two regulations are incompatible with digital banking governance in protecting personal data and giving legal clarity. Regulations No. 12/FSAR.03/2021, No. 13/FSAR.03/2021, and No. 14/FSAR.03/2021 regulate digital banking. These provisions have flaws: the ease of obtaining licenses, emphasizing administrative punishments, lack of binding force, and the absence of regulations governing personal data protection in digital banking governance in Indonesia. Therefore, it is urgent to regulate personal data in one specific law.
Artificial Intelligence is categorized into the domain of computer science focused on creating intelligent machines that function like humans. Artificial Intelligence supports institutions including Islamic Financial Services in learning, making decisions, and providing useful predictive analytics. The progress and promise that artificial intelligence has made and presented in finance have so far been remarkable, allowing for cheaper, faster, closer, more accessible, more lucrative, and more efficient finance especially during the pandemic Covid-19 when people are required to stay at home yet still doing a banking transaction. Despite the incredible progress and promise made possible by advances in financial artificial intelligence, it nevertheless presents some serious perils and limitations. Three categories of risks and limitations involve the rise of virtual threats and cyber conflicts in the financial system, society's behavioral changes, and legal amendments that cannot respond to technological developments, especially in developing countries. The main objective of this article is to evaluate the operations of the potential risks that may arise in the use of Artificial Intelligence in Islamic finance services, especially dealing with the legal arrangement that is supposed to be in line with business development. Indonesia is a country that adheres to civil law system, in which every legal arrangement is supposed to be based on written law. The lack of this legal system is where the speed of legal changes cannot keep up with the pace of technological development, which is present as a hinder to the development of Artificial Intelligence in the financial system. This article concludes that Artificial Intelligence will have a huge impact in the future on the Islamic Finance industry, but in the Indonesian context, it still needs various efforts to reduce the potential risk that eventually has a big impact on the progress of Islamic banks.
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