INDONESIAN FINANCIAL LAW: HISTORY AND RECENT DEVELOPMENT

Abstract

The economic system and political regimes in most cases affect major changes in the financial laws of the state. Indonesia, the big country that gained its independence in 1945, had a long journey of financial struggles and challenges, particularly in the political regimes that divided into the Old Regime, the New Regime, and the Reformation Era. The objectives of this paper try to examine how Indonesia's economic system affects the state's financial policies described in legislation. Other objectives are the development of financial law in Indonesia based on the period divisions with historical perspectives. With normative legal research, this study will analyze several sources of laws and regulations on financial policies throughout the historical periods of Indonesia. In conclusion, Pancasila, and Article 33 of the Indonesian Constitution 1945 become economic constitutions that form the basis of financial policies of Indonesia. Moreover, the politics of the ruling regime strongly influenced financial law policies in Indonesia. The characteristics of monetary law changed based on the transfer of legal politics during the Old Order, New Order, and Reformation era