Judicial Review Efforts against Capital Provisions as a Form of Legal Protection for the Community and Rural Banks

This article addresses two legal issues, namely 1) the reasons behind the government's establishment of high capital requirements for Rural Banks, and 2) the possibility of amending through judicial review. The research method uses normative legal research with a legislative approach. It collects data through a literature and provision review, related to community and rural banks’capitalization, and interviews with officials of the bank. It demonstrates that the reasons for issuing provision, namely POJK No. 62/POJK.03/2020 are: 1) to promote sustainable economic growth, 2) to strengthen BPR capitalization, and 3) to accommodate the enhancement of BPR competitiveness. However, the provisions of this POJK are still overly burdensome for the establishment of BPR and are contrary to the principles of economic democracy in Law No. 7 of 1992 concerning Banking as Amended by Law No. 10 of 1998. Therefore, a judicial review legal action is needed to challenge these provisions.