¹Hery Sudiarto,²Johannes Ibrahim Kosasih,³I Made Arjaya

^1,2,3Third Master of Law, Warmadewa University, Denpasar, Bali-Indonesia

Along with the digital transformation, the banking sector has undergone rapid transformation. WeChat Pay and Alipay, which are leading digital wallets in China, have spread to Indonesia and collaborated with local banks. Although WeChat Pay and Alipay collaborate with local banks, the implementation of these transactions has not fully met the regulations of Indonesia's financial system. The research problem in this study is 1) What is the government's policy in issuing legal norms for regulating foreign digital money transaction cooperation within the jurisdiction of Indonesia? 2) How do WeChat Pay and Alipay assume legal responsibility for their operations in Indonesia related to financial sovereignty in Indonesia? This study aims to analyse the government's policy in issuing legal norms for regulating WeChat Pay and Alipay electronic money transaction cooperation and its impact on Indonesia's sovereignty. The researcher analysed laws, regulations, related policies, and literature studies by using normative juridical methods. The research findings indicate that relevant agencies need to supervise Indonesia's financial system regulations to prevent illegal financial transactions in Indonesia as they are not sufficiently prepared to anticipate the globalization of the financial system. This research recommends that the Indonesian government develop more comprehensive regulations to increase supervision of WeChat Pay and Alipay electronic money transactions to maintain Indonesia's sovereignty.

Electronic money; WeChat Pay; Alipay

BOOKS
1) Johannes, Ibrahim, 2018, Fund Transfer Crimes, Evolution and Modes of Crime through Financial Institution Banks, Sinar Grafika, Jakarta.

2) Kelsen, Hans, 1960, The General Theory of Law and State, Harvard University Press, Cambridge, Massachusetts, United States of America.

3) Lubis, Todung Mulya, 2008, International Law: An Introduction, Raja Grafindo Persada, Jakarta.

4) M. Husni Thamrin, 2019, Legal Aspects of Crypto Assets, Kencana Prenada Media Group, Jakarta.

5) Ramli, Rizal, 2019, Indonesia on the Global Stage: Contests and Challenges, Penerbit Mizan, Jakarta.

6) Soekanto, Soerjono, 2008, Introduction to Legal Studies, Jakarta, UI Press.

JOURNAL
1) Erman Rajagukguk, 2018, Crypto Assets: Law and Taxation, Majalah Hukum dan Pembangunan, Vol. 47, No. 3, Jakarta.

2) Sari, R. P. Kusuma, 2021, Indonesian Jurisdiction in Foreign Digital Transactions, Jurnal Hukum Global, Indonesia.

WEBOGRAPHY
1) Bank Indonesia, Payment System & Management of Rupiah Currency, (https://www.bi.go.id/PJSPQRIS/default.aspx, accessed on April 09, 2023).

LEGISLATION
1) The Constitution of the Republic of Indonesia in 1945.

2) Law Number 7 of 1992 concerning Banking as amended by Law Number 10 of 1998 concerning Amendments to Law Number 7 of 1992 concerning Banking.

3) Law Number 23 of 1999 concerning Bank Indonesia on payment systems.

4) Law Number 11 of 2008 concerning Electronic Information and Transactions.

5) Republic of Indonesia Law Number 43 of 2008 concerning State Borders.

6) Law Number 3 of 2011 concerning Fund Transfers.

7) Law Number 7 of 2011 concerning Currency.

8) Law Number 12 of 2011 concerning the Formation of Legislation.

9) Law Number 21 of 2011 concerning Financial Services Authority. Law Number 19 of 2016 concerning Amendments to Law Number 11 of 2008 concerning Electronic Information and Transactions.

10) Law Number 23 of 2019 concerning Management of National Resources for State Defense.

11) Bank Indonesia Regulation Number 11/12/PBI/2009 concerning Electronic Money.

12) Bank Indonesia Regulation Number 18/17/PBI/2016 concerning the Second Amendment to Bank Indonesia Regulation Number 11/12/PBI/2009 concerning Electronic Money.

13) Bank Indonesia Regulation Number 18/40/PBI/2016 of 2016 concerning the Processing of Payment Transactions.

14) Bank Indonesia Regulation (PBI) 19/8/PBI/2017 concerning National Payment Gateway.

15) Bank Indonesia Regulation Number 20/6/PBI/2018 concerning Electronic Money.

16) Financial Services Authority Regulation Number 12/POJK.03/2018 concerning Digital Banking Services.

17) Financial Services Authority of the Republic of Indonesia Regulation Number 13/POJK.02/2018 concerning Digital Financial Innovation in the Financial Services Sector.

18) Member of the Board of Governors Regulation Number 21/18/PADG/2019 concerning the Implementation of National Quick Response Code Standards for Payment.

19) Member of the Board of Governors Regulation Number 23/8/PADG/2021 concerning Amendments to Member of the Board of Governors Regulation Number 21/18/PADG/2019 concerning the Implementation of National Quick Response Code Standards for Payment.

20) Member of the Board of Governors Regulation Number 24/1/PADG/2022 concerning the Second Amendment to Member of the Board of Governors Regulation Number 21/18/PADG/2019 concerning the Implementation of National Quick Response Code Standards for Payment.

VOLUME 06 ISSUE 05 MAY 2023

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