PENANGANAN DAN PENYELESAIAN BANK GAGAL OLEH LEMBAGA PENJAMIN SIMPANAN (LPS)

This study aimed to seek answers to two issues regarding 1). What is the authority of the Indonesia Deposit Insurance (LPS) to perform the handling and settlement of bank failure? 2). What is the criteria that the bank failed to do the handling and settlement by the Indonesia Deposit Insurance (LPS)?. This research is a law that aims to seek answers from a legal problem through the approach of law (statute approach) and the approach to the concept (conceptual approach) that is used to examine legal issues as the destination to find the answers. Statute approach is absolutely necessary in order to assess more about the basic law regarding the handling and settlement of bank failure by the Indonesia Deposit Insurance(LPS). With a background of trust that is the lifeblood course of banking business, a bank is required to maintain the trust of its customers with a way to maintain health based on the principle of prudence (prudential principle). A bank that lost confidence is bad for the bank it self and the depositors of the bank a rush or bank panic, there is not enough just another impact could be worse if the bank until the difficulties that endanger its survival to result in license has been revoked by Bank Indonesia or the Banking Supervisory Agency. To restore public confidence, the Government is based on Presidential Decree No. 26 of 1998 concerning Guarantee Against Payment Liabilities of Commercial Banks and the Presidential Decree Number 193 of 1998 concerning Guarantee Against Payment Obligation Rural Bank, making Blanket Guarantee policy which is a good overall protection system to client bank depositors and creditors. Blanket Guarantee Policy not last long because it was too broad scope guarantee resulting in 3 (three) main problems faced by the banking system The first, is the lack of clarity about who protected the people or bankers; Second, will always appear non professional in bank management, bank Management responsibilities tend to be low; Third, the risk of loss to the state will tend to be high. To keep the trust depositors according to the importance of the mandate of the Law, namely Article 37 B of the Banking Statute: 1). Each bank shall ensure that public funds kept in the bank concerned; 2). To guarantee on bank deposits as referred to in paragraph (1) established the Deposit Insurance Agency. So the date 22 September 2004, the government passed the the Indonesia Deposit Insurance (LPS) Statute became the legal basis the government established the Indonesia Deposit Insurance (LPS). According to the Statute the Indonesia Deposit Insurance (LPS) is an independent institution which guarantees customer deposits storage function and actively participate in maintaining the stability of the banking system in accordance with its authority