OJK (Financial Services Authority), New Era of Customer Protection In IndonesiaPosted: December 23, 2011
The end of 2011 has born a new era in the world of financial services in Indonesia, namely marked by the adoption of the bill on the Financial Services Authority (Otoritas Jasa Keuangan or known as “OJK”) into Law by the House of Representatives.
With the enactment of the Law on OJK, the system of financial services in Indonesia becomes more integrated, advanced and provides greater protection to the customers of financial services.
OJK is expected to provide better protection to customers of financial services, given the scope of authorities of the OJK is to regulate and supervise. In conducting such oversight, OJK is authorized to undertake examination, investigation, protection of customers through the provision of sanctions against financial services institution.
The protection provided by OJK includes prevention of loss of customers. The aggrieved customer complaint to seek redress and legal defense for customers. In conducting such legal defense, OJK authorities may file a lawsuit to recover property of the aggrieved customer or file a lawsuit to seek redress from damages as a result of violation to the laws and regulations in the financial services sector.
Thus, in an effort to provide greater protection to customers (in case of complaints), OJK is authorized to take actions ranging from receiving complaints, to facilitating settlement of the complaints, conducting inspection and investigation on the practices of the financial services companies, actors and / or auxiliary financial services, filing for return of property owned by injured party, filing a tort case to establish administrative penalties and orders or taking certain actions against financial services companies to seek redress for the interest of the aggrieved customer.
OJK still has a lot of homework to do, besides preparing its organization is the setting up of systems and procedures regarding the protection of the financial service customers who have been mandated by the Law on OJK. Some of the issues that raise questions are the technical implementation of customer protection, such as that have occurred in case like the liquidation of Bank Global, Bank IFI, customer’s complaint of “Bank Century Tbk” or “Antaboga Securities”.