Renewal of Pancasila Based Banking Law in The Framework of Structuring Rural Bank to Face The Challenges of Globalization

Objective: This study aims to analyze the dynamics of the regulation of Rural Credit Banks in Indonesia, the urgency of legal reform for Rural Credit Banks in order to face the challenges of globalization, and legal reform for Rural Credit Banks based on Pancasila Values.   Theoretical Reference: Legal reform considers: The moral relationship between citizens and the law; and the ability of the legal and political systems to meet the needs and demands of the people for justice.   Method: Normative Juridical Method, referring to laws and regulations as rules or norms, thus this study does not use the term data but rather legal materials.   Results and Conclusions: Referring to Law Number 10 of 1998 concerning amendments to Law Number 7 of 1992 concerning Banking, that BPR is limited to ownership only by Indonesian Citizens, Indonesian Legal Entities and Regional Governments. However, Rural Credit Banks in facing globalization, Rural Credit Banks requires funding and capital, especially to issue shares through the stock exchange. This requires a renewal of Banking Law in Indonesia related to the Arrangement of BPR based on Pancasila values ​​in facing the challenges of globalization by guaranteeing the sovereignty of the people's economy without discrimination.   Implications: Can foster new needs including in the ease of transactions that can be realized by Rural Credit Banks through banking digitalization or the provision of electronic banking facilities.   Originality: Efforts to reform the law on Rural Credit Banks in developing its business require funding and capital carried out through stock issuance on the stock exchange based on Pancasila values.