The Aceh Qanun Revision, Is It True, That Aceh’s Banking Sector Has Declined After the Aceh Qanun?

by Eko B. Supriyanto, Chief Editor Infobank
Jakarta – Money is like water, It always flows to lower, safer, and more comfortable places. Money is like faith, it cannot be “brutally” forced to be in a place where it is not comfortable. Indonesia still adheres to the dual system, namely sharia and conventional.

However, since the enactment of Regional Regulation (Perda) Number 11 of 2018 concerning Sharia Financial Institutions (LKS) in Aceh, everything related to the financial sector, especially in Aceh, must be halal. Must be sharia, the rest is haram. Those who do not want to follow these rules, must leave. And, those who are conventional must convert. Must become “converts”.

Aceh is the only region that can bump into the Banking Law which still allows banks to operate in a dual system. However, in Aceh it is not allowed, because of Regional Regulation Number 11 of 2018.
Bank Syariah Indonesia (BSI) is the largest bank in Aceh, due to the merger of three banks, namely Bank Syariah Mandiri (BSM), BNI Syariah, and BRI Syariah. Bank Aceh owned by the Aceh Special Regional Government (Pemda) also converted to sharia. Also, there are several banks such as BCA Syariah, Bank Muamalat, Bank Maybank Syariah, Bank Danamon Syariah, Bank BTN Syariah, Bank CIMB Niaga Syariah, Bank BTPN Syariah, and Bank Mega Syariah.

After the Aceh Qanun was enacted, several events occurred. In August 2022, three foreign tourists were unable to use debit cards at Bank Aceh Syariah and BSI Aceh Branch. A number of ATMs rejected cards with the Visa logo at the ATMs of the two banks. This went viral.

Whispers in the business world about the need to open up opportunities for conventional banking services were just whispers. Local government complaints had also stopped by the OJK. However, who is empowered? Until finally there was a down service from BSI. This relatively long offline from BSI, and became an open discussion about the need to reopen conventional options.

Late last month, the Aceh Provincial Government proposed a revision of the Aceh Qanun. In essence, asking to allow the operation of conventional banks again. Pros and cons ensued. Vice President Ma’ruf Amin is in favor of strengthening Islamic banks in Aceh.

Even with sharia activists. “Returning to a dual system, sharia and conventional, is a step backwards,” wrote one sharia activist to Infobank’s WhatsApp service.

Meanwhile, others argue that the revision of this Qanun is actually a step forward, because people have a choice. Moreover, the business world, OJK, and the Aceh Provincial Government also support the revision of this Qanun.

The question is, after the Qanun Aceh is enacted, will Aceh’s banks be more powerful? Able to serve all Acehnese people and can encourage the economy in Bumi Serambi Mekkah?

According to data from the Infobank Research Bureau (birI), since the enactment of the Aceh Qanun, Aceh banking has actually experienced a setback. Original, not growing. This can be seen from the data on public funds which actually fell, when public funds grew. In fact, banks also find it difficult in credit. Credit development also plummeted, even though national credit grew in double digits.

Check it out! In 2019 the position of public funds in Aceh reached IDR 42.24 trillion, but then slowdown to IDR 41.79 trillion in 2020. In March 2023 it decrease again to IDR 37.39 trillion. Banks there are also struggling to extend credit. In 2019, credit reached Rp38.27 trillion, but then slowdown to Rp34.73 trillion.

Not only from the banking side. Aceh’s economic role is also still inferior compared to regions throughout Sumatra. Aceh’s gross regional domestic product (GRDP) growth in the fourth quarter (Q4) of 2022 against Q1 2023 fell 7.06%, although Q1 2022 against Q1 2023 still grew 4.63%. But, not as good as in the Sumatra region.

So, the discourse on revising Aceh’s Qanun No. 11/2018 on LKS is not due to BSI’s offline case. It seems to be broader. The idea of making these changes must also be addressed “legowo” because what is to be changed is a man-made product.

Eh, it turns out that with the monopoly of LKS in Aceh the results have not been maximized. In fact, what appears to be a “setback”, and the realization is starting to exist. The proof is that the Provincial Government and the Aceh People’s Representative Council (DPRA) also still feel the need for conventional banking services. However, it is certainly not easy to convince conventional banks to immediately reopen in Aceh that were previously expelled “by force”.

Will there be no revisions after being allowed to reopen in Aceh? Will it not be changed again? It is not easy to convince conventional banks that have previously been expelled from Aceh. Legal certainty is needed. Not making arbitrary policies, just for momentary and emotional interests.

To be honest, the financial sector’s confidence in legal certainty is currently low. However, it is still good if the revision occurs, by allowing conventional banks to reopen “stalls” in Tanah Rencong. Money, like “religion”, cannot be coerced, even if it is “brutal”.

An important lesson from Qonun Aceh can also be used to make POJK Spin off Sharia Business Unit (UUS). Do not force and fight against the “mazab” of the market, if only pursuing market share certainly does not have to make unreasonable and unfair coercion. This should also be the handle of the OJK and DPR Commission XI which will work on the RPOJK spin off. (*)