Navigating the ever-evolving landscape of the financial world, Indonesia’s Financial Services Authority (OJK) has taken a decisive leap by introducing new regulations geared towards enhancing the consumer protection and security. This regulatory initiative underscores OJK’s unwavering commitment to safeguarding consumer rights amid the dynamic shifts in the financial sector.
The recently issued regulation, Financial Services Authority Regulation (POJK) Number 22 of 2023, focuses on Consumer and Community Protection in the Financial Services Sector. This move is a direct response to the mandates outlined in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (Law P2SK). It replaces the previous POJK Number 6/POJK.07/2022, refining and supplementing several other existing regulations.
OJK, in an official statement, expressed gratitude for the diverse inputs received during the formulation of this regulation. Stakeholders, ranging from financial industry associations to Financial Service Business Actors (PUJK), played a vital role in shaping these guidelines.
Friderica Widyasari Dewi, Executive Head of the Supervision of the Behavior of Financial Service Business Actors, Education, and Consumer Protection at OJK, emphasized in a statement on Tuesday (9/1/2024), “The issuance of POJK on Consumer and Community Protection in the Financial Services Sector represents OJK’s swift response as a regulator, aligning with the mandates of Law P2SK to fortify consumer and community protection.”
The Issuance of OJK Regulation for Enhanced Consumer Protection
This regulatory initiative seeks to bolster the framework for consumer protection, taking into account the expanding landscape of financial service businesses, the digitization of products and services within the financial sector, and the continuous evolution of the industry’s complexities.
POJK Number 22 of 2023 further solidifies the authority of the Financial Services Authority in overseeing the Conduct of Financial Service Business Actors (PUJK). This includes aspects such as designing, providing information, conveying information, marketing, making agreements, providing services for products and services, as well as handling complaints and dispute resolution.
The oversight of PUJK’s Market Conduct is envisioned to maintain and enhance consumer trust in PUJK throughout all its activities and business operations in the financial services sector. Simultaneously, it aims to provide opportunities for fair, efficient, and transparent development within PUJK.
Friderica remarked, “Since the enactment of Law P2SK, PUJK is increasingly encouraged to become a financially healthy business entity and apply good market conduct in its business activities. These two aspects are interlinked, and by adhering to market conduct principles, we anticipate fostering healthy business growth through strengthened consumer trust.”
In-depth Analysis of OJK Regulations on Consumer Protection
Delving into the substance of the regulation, there are 11 key areas that witness a reinforced focus on consumer and community protection within this POJK. These include:
- Adjustment of the scope of PUJK and consumer protection principles;
- Prohibition of accepting as consumers and/or collaborating with parties conducting business activities in the financial sector without permission from the Financial Services Authority or the competent authority;
- Rights and obligations of prospective consumers, consumers, and PUJK, as well as prohibitions for PUJK;
- Inclusion of fees and commissions/rewards to marketing/intermediary agents in agreements;
- Debt collection mechanisms and collateral takeover/retrieval by PUJK for credit and financing products and/or services;
- Adjustment of the complaint service period for PUJK;
- Protection of data and/or information and obligations to ensure the security of information systems and cybersecurity;
- Supervision of PUJK behavior (market conduct);
- Strengthening regulations on the provision, presentation of information, and marketing of Investment-Linked Insurance Products (PAYDI);
- Submission of objections to administrative sanctions issued by OJK; and
- Strengthening OJK’s authority in filing civil lawsuits.
With the issuance of this comprehensive POJK, the aim is to stimulate the creation of a robust Consumer Protection system. This regulatory move is anticipated to not only empower consumers and communities but also instill a heightened awareness among Financial Service Business Actors.
Furthermore, OJK’s proactive approach in introducing these new regulations reflects its commitment to addressing the challenges and opportunities presented by the modern financial landscape. Acting as a robust foundation, these regulations are poised to cultivate a healthy, innovative financial ecosystem, prioritizing the protection of consumer interests.
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