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(Aug 22, 2013)Muliaman D. Hadad, the head of Indonesia's Financial Services Authority (Otoritas Jasa Keuangan, or OJK), announced at a press conference on July 30, 2013, that the country's first regulation to protect financial services consumers has been issued. The new rules cover banks, insurance companies, and providers of investment services. The regulation was introduced following many reports of investment scams that have resulted in the loss of billions of rupiah, the Indonesian currency. (First OJK Regulation Increases Customer Protection, JAKARTA POST (July 31, 2013); OJK website [in Indonesian] (last visited July 31, 2013).) According to Hadad, the regulation establishes that financial institutions must be transparent, fair, confidential, reliable, and protective of data safety. He added that "[t]he regulation is to protect the interests of both consumers in the financial service sector and consumers generally, and at the same time support the growth of the financial services industry and institutions." (First OJK Regulation Increases Customer Protection, supra.) In addition, the regulation calls for internal controls within companies that provide financial services, including a requirement that within one year companies establish reporting and monitoring systems for customer problems. The regulation, which comes into force next year, also has provisions on how the OJK will handle consumer complaints and on sanctions for noncompliance. (
|Author:||Constance Johnson More by this author|
|Topic:||Banks and financial institutions More on this topic|
|Consumer protection More on this topic|
|Jurisdiction:||Indonesia More about this jurisdiction|
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Last updated: 08/22/2013