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Nov

12

NEW ERA OF CONSUMER PROTECTION IN THE FINANCIAL SERVICES SECTOR

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.

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Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
  • Training on the PDP Law tailored to clients’ businesses

We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
Naz Schinder
Managing Partner

Our Service

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.
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