Regulation of Wechat Pay and Alipay Electronic Money Transactions in the Perspective of Indonesian State Sovereignty
Year: 2023
Type: article
Abstract: 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.
Institution: Warmadewa University
Language: English
Subfield: Law
Field: Social Sciences
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4367677692