Comparative Analysis of Outsourcing Policies in the Banking Sector Through an International Benchmarking Approach

Abstract

Outsourcing policies are widely adopted in the banking sector to enhance operational efficiency. This research aimed to analyze the implementation and effectiveness of Outsourcing regulations in Indonesia following the enactment of the Job Creation Law (Law No. 11 of 2020), while benchmarking against best practices in countries such as the United States (Federal Reserve Bank), Trinidad & Tobago (Central Bank), England (Bank of England), the European Union (European Central Bank), Malaysia (Bank Negara Malaysia), the United Arab Emirates (Central Bank of the UAE), and Singapore (Monetary Authority of Singapore). The research focuses on worker protection, risk management, and regulatory compliance. A qualitative normative legal research method combined document analysis and international comparisons. The findings revealed that while the Job Creation Law offered flexibility in Outsourcing practices, challenges remained in worker protection and oversight. Recommendations included strengthening regulations, improving transparency, and adopting data-driven risk management to foster a fair and sustainable Outsourcing ecosystem in Indonesia.