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It’s a new day. The development of technology in the financial services cannot be ignored and needs to be managed in order to provide maximum benefit to society. The financial sector needs to be directed to produce financial innovations that are responsible, safe, prioritize consumer protection, and have well-managed risk.
Consumer Protection in the financial services sector is aimed at creating a reliable consumer protection system, improving consumer empowerment, and developing awareness among financial services practitioners in order to increase the public's trust in the financial services sector. Public (consumers’) trust is the main pillar that sustains the development of the financial industry. Therefore, the Financial Services Authority ("OJK") has issued new regulations concerning consumer protection.
The previously existing regulations regarding consumer complaints, the OJK Regulation No. 1/POJK.07/2013 concerning Consumer Protection in the Financial Services Sector and OJK Circular Letter No. 2/SEOJK.07/2014 concerning Services and Settlement of Consumer Complaints in Financial Services Business Actors, have not specifically regulated the stages and length of time for consumer complaint handling. For this reason, OJK then issued OJK Regulation No. 18/POJK.07/2018 concerning Consumer Complaint Services in the Financial Services Sector ("POJK 18/2018").
The main points of the Consumer Complaint Services arrangement based on POJK 18/2018 are:
Scope, among others:
- Acceptance of Complaints;
- Complaint Handling;
- Complaint Settlement.
The principle of Complaint Service is free and the Financial Services Business Actors are prohibited from charging Complaint Service fees to consumers.
Obligations. The Financial Services Business Actors must have written procedures regarding Complaint Services and must include a short Complaint Service procedure in the agreement and/or Financial Transaction documents, and, at the same time, shall publish such procedure to the consumers/ public. The Financial Services Business Actors is also obliged to publish the handling of complaints received by it in the annual report, website, and/or other media that is managed officially by the Financial Services Business Actors.
Report. The Financial Services Business Actors shall compile and submit quarterly Complaint Service reports to OJK, no later than the 10th day of the following month after the quarterly period ends.
In addition to being able to file a lawsuit through the court if a settlement is not reached by the Financial Services Business Actors, consumers can settle disputes through the Alternative Dispute Settlement Institutions listed in the List of Alternative Dispute Settlement Institutions issued by the OJK.
When the POJK 18/2018 comes into effect on 10 March 2019, the provisions governing the settlement of Consumer Complaints, such as Bank Indonesia Regulation No. 7/7/ PBI/2005 and Bank Indonesia Regulation No. 10/10/PBI/2008 concerning Settlement of Customer Complaints; Article 34 to Article 38 of the OJK Regulation No. 1/POJK.07/2013 concerning Consumer Protection in the Financial Services Sector; Bank Indonesia Circular Letters concerning Customer Complaint Settlement, will be revoked and declared invalid.
It’s clear that Indonesia is intent on responding to surges in its financial market and progressively equipping consumers as needs and trends arise. At SLF, we welcome this shift and aim to become a resource for any support required.
Written by: Dewi Susanti S.H., M.Kn.