Law Number 4 of 2023 on The Development and Strengthening of The Financial Sector has strengthened Bank Indonesia's authority to regulate and supervise consumer protection in the financial sector. With the increasing risks caused by innovation and digitalization of products and/or services in the financial sector, it is necessary to strengthen the regulation of Bank Indonesia's consumer protection. Therefore, Bank Indonesia issued Bank Indonesia Regulation Number 3 of 2023 on Bank Indonesia Consumer Protection, which was established to adjust to the development of consumer protection principles. Find out more our insights about this topic in our Legal Brief publication.
2. BACKGROUND
A H R P L e g a l B r i e f
The issuance of Bank Indonesia Regulation Number 3 of 2023 on Bank Indonesia Consumer Protection ("BI
Reg. 3/2023") is closely related to the issuance of Law Number 4 of 2023 on The Development and
Strengthening of The Financial Sector ("Law 4/2023") which represents the government's effort to promote
public welfare through the reform of Indonesia's financial sector. One of the issues that drives the issuance
of the Law 4/2023 is the lack of consumer protection in the financial sector.
Various current arrangements stipulated in the Law 4/2023 specifically have not been included in the
previous arrangements in Bank Indonesia Regulation Number 22/20/PBI/2020 on Bank Indonesia
Consumer Protection. Moreover, consumer protection is seen as a requirement that needs to be
strengthened in order to increase public confidence in utilizing financial products and services thus
ultimately support the achievement of financial sector stability.
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In addition, the issuance of BI Reg. 3/2023 is also prompted by the issuance of Law Number 27 of 2022 on
Personal Data Protection, as well as updates to the G20/OECD High Level Principles on Financial
Consumer Protection. In particular, there are 12 (twelve) principles related to the G20/OECD High Level
Principles on Financial Consumer Protection, namely:
1 Legal, Regulatory, and Supervisory Framework
2 Role of Oversight Bodies
3 Access and Inclusion
4 Financial Literacy and Awareness
7 Disclosure and Transparency
8 Quality Financial Products
9 Responsible Business Conduct and Culture of
Financial Services Organizers and Intermediaries
Protection of Consumer Assets against Fraud,
Scams, and Misuse
5 Competition
6 Equitable and Fair Treatment of Consumers
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Protection of Consumer Data and Privacy
Complaints Handling and Redress
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Therefore, Bank Indonesia needs to adjust and rearrange the aspects of consumer protection within the scope of Bank Indonesia's
authority, in order to be in line with and support the implementation of the respective laws and regulations.
WHAT’S
NEW?
Redefinition of Consumer and Organizer
Adjustment of Consumer Protection Scope
Improvement of Consumer Protection Principles
Addition of Regulations related to the Rights and Obligations of
Consumers and Organizer
Strengthening Consumer Complaint Handling through Dispute
Resolution
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Explanation of Consumer Protection Objectives
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7 Adjustment of Administrative Sanctions
3. STAKEHOLDERS
A H R P L e g a l B r i e f
Consumer
Organizer
Consumers are individuals, corporations, or business entities,
either in the form of legal entities or non-legal entities, or other entities
as final owners and/or beneficiaries of products and/or services
provided by organizers for their own interests and not for trading or
forwarded to other organizers.
Art. 1 (1) BI Reg. 3/2023
Organizer is any party, either bank or non-bank
institution, that conducts activities regulated and
supervised by Bank Indonesia whose products and/or
services are utilized by Consumers.
Art. 1 (2) BI Reg. 3/2023
Organizers in the Payment System sector;
Organizers of Money Service Activities;
Parties conducting activities in the Money Market and
Foreign Exchange Market; and
Other parties regulated and supervised by Bank
Indonesia,
that directly connect with Consumers.
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Examples:
PT Fliptech Lentera Inspirasi Pertiwi PT Dompet Anak Bangsa
In this regard, Organizer shall include:
Art. 3 BI Reg. 3/2023
Bank Indonesia shall supervise Organizers through indirect supervision
and/or direct supervision. Furthermore, in conducting the said
supervision, Bank Indonesia has the authority to request documents,
data, information, explanations, and/or elaborations from Organizers.
Art. 59 (1) (2) BI Reg. 3/2023
4. A H R P L e g a l B r i e f
Equality and Fair Treatment
fair and non-discriminatory treatment of
Organizers to Consumers
Education and Literacy
a series of activities carried out by the
Organizers to raise Consumers’ and/or the
public's knowledge and comprehension of the
Organizers’ products and/or services
Protection of Consumer Assets
against Misuse
the Organizers manage Consumers’ financial
assets, which include electronic money
balances
Effective Handling and Settlement of
Complaints
by, among other things, creating and executing a
responsive, effective, and time-bound procedure
for handling and resolving consumer complaints
Openness and Transparency
providing of information to Consumers in an
understable language by the Organizers
Responsible Business Conduct
the conduct of the Organizers in running their
businesses while keeping Consumers' interests
in mind
Protection of Consumer Data and/or
Information
by, among other things, only utilizing such data
and/or information in line with the Consumers'
approved interests and purposes
Compliance Enforcement
the Organizers shall ensure compliance with
Consumer Protection standards based on laws
and regulations
PRINCIPLES OF
CONSUMER PROTECTION
5. defend itself in the settlement of consumer disputes.
obtain reputation rehabilitation if legally proven that the
Consumer's loss was not caused by the Organizer.
receive payments in accordance with the value or price, and/or
fees for products and/or services agreed with the Consumer.
ensure the good will of Consumers.
obtain legal protection from the actions of consumers with bad faith.
RIGHTS OF ORGANIZERS
obtain clear, accurate, true and not misleading information and/or
documents regarding Consumers.
A H R P L e g a l B r i e f
6. OBLIGATIONS OF ORGANIZERS AND SANCTIONS
A H R P L e g a l B r i e f
Obligations of Organizers
Sanctions
written warning;
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restrictions on products and/or services and/or
business activities in part or in whole;
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management dismissal;
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administrative fines;
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product and/or service license revocation; and/or
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revocation of business license.
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freezing of products and/or services and/or
business activities in part or in whole;
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shall provide equal access to every Consumer.
shall provide information to Consumers regarding product and/or
service features as well as rejection, delay, or approval of product
and/or service requests.
shall provide special services to Consumers with special needs.
prepare guidelines for determining the cost of products and/or
services charged to Consumers.
shall pay attention to the principle of balance, the principle of fairness,
and the principle of fairness in making agreements with Consumers.
prohibited from making and using Standard Agreements that
contain standard clauses.
in marketing and advertising activities, Organizers are required to
comply with provisions regarding the accuracy and correctness of
information.
shall manage and administer Consumer data and/or information in
a complete, accurate, current and complete manner.
shall pay attention to the compatibility between the needs and
capabilities of consumers with the products and/or services offered
to Consumers.
shall maintain the security of Consumer assets which are under
the responsibility of the Organizer.
shall have mechanisms and procedures regarding the protection of
Consumer assets.
shall maintain the confidentiality and security of Consumer data and/or
information.
prohibited from providing Consumer data and/or information to
other parties.
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shall provide the Consumer with access to and a copy of the
Consumer's personal data.
shall provide official means to facilitate Consumers in obtaining
information.
shall conduct education to increase Consumer and/or public
literacy.
shall apply responsible business behavior in conducting activities
with Consumers.
shall prevent management, supervisors, and employees from
conducting actions that harm Consumers.
shall handle and resolve complaints submitted by Consumers
effectively.
shall have a function that handles and resolves complaints
submitted by Consumers.
shall own and implement a mechanism for handling and resolving
complaints submitted by Consumers.
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shall prevent management, supervisors, and employees from
conducting actions that harm Consumers.
shall be responsible for Consumer losses arising from, negligence,
and/or acts contrary to the provisions of laws and regulations, committed
by BoD, BoC; administrators; and/or parties affiliated with the Operator.
shall ensure compliance with statutory provisions regarding
Consumer Protection.
7. RIGHTS AND OBLIGATIONS
OF CONSUMERS
A H R P L e g a l B r i e f
Rights
Obligations
obtain security in using products and/or utilizing services in accordance with the
provisions of laws and regulations and/or agreements.
choose products and/or services.
obtain products and/or services in accordance with the promised offer and/or in
accordance with the provisions of laws and regulations.
obtain information regarding products and/or services that are clear, accurate, correct,
easily accessible, and not potentially misleading.
be heard regarding their opinions and complaints about the products and/or services
used.
receive financial education.
treated or served properly.
obtain advocacy, protection, and efforts to handle complaints and resolve consumer
disputes.
get compensation if the product and/or service received is not in accordance with the
agreement and/or provisions of laws and regulations.
access Consumer data and/or information managed by the Organizer.
listen to explanations regarding products and/or services delivered with certain marketing
methods by the Organizer before purchasing the Organizer's products and/or services.
read, understand, and correctly execute the agreement and/or product and/or service usage
documents.
in good faith in the use of products and/or services.
provide information and/or documents that are clear, accurate, true and not misleading.
pay in accordance with the value or price and/or cost of products and/or services agreed
with the Organizer.
participate in efforts to resolve Consumer Protection disputes in accordance with the
provisions of laws and regulations.
8. THE HANDLING OF CONSUMERS’
COMPLAINTS BY BANK INDONESIA
A H R P L e g a l B r i e f
1. provide understanding to Consumers and Organizers on the problems in the use
of products and/or services;
2. request clarification from Consumers and Organizers regarding the problem; and
3. request the Organizers to review Consumer complaints again and follow up on
the results of the review by submitting settlement proposals to Consumers.
Education
Consultation
Facilitation
The Handling of Complaints
Organizers must conduct education to encourage consumer
and/or public literacy in the following ways: (i) planned; (ii)
quantifiable; and (iii) sustainable. Education implementation
focuses on delivering information about the basic aspects of
products and/or services, as well as knowledge and skills
about risks, advantages, and prices.
Consumer complaints are (i) handled through facilitation after
conversations and compliance with Bank Indonesia’s administrative
procedures; (ii) carried out after the Consumers file a written request for
facilitation after going through consultation. The results of facilitation
between Consumers and Organizers are final and binding for both of
them, and are documented in the minutes of facilitation results.
Reason for Complaint Conditions of Complaint Complaint Procedure
1. Consumers misunderstanding;
2. Indations of Organizers violations against
Bank Indonesia regulations; and/or
3. Justifiable financial losses and/or
potential financial losses affecting
Consumers, with a maximum limit of:
a. Rp500,000,000.00 for Payment
System Organizers, Money Service
Activity Organizers, and other parties
regulated and supervised by Bank
Indonesia; or
b. Rp2,500,000,000.00 for Money
Market and Foreign Exchange Market
participants.
1. Consumers misunderstanding;
2. Indations of Organizers violations against
Bank Indonesia regulations; and/or
3. Justifiable financial losses and/or
potential financial losses affecting
Consumers, with a maximum limit of:
a. Rp500,000,000.00 for Payment
System Organizers, Money Service
Activity Organizers, and other parties
regulated and supervised by Bank
Indonesia; or
b. Rp2,500,000,000.00 for Money
Market and Foreign Exchange Market
participants.
Within 60 working days after the Organizers’ written
transmission of the results of the complaint settlement
to the Consumers, Customers file complaints:
1. directly, by visiting the Bank Indonesia Head
Office or one of the Bank Indonesia
Representative Offices; and/or
2. indirectly, via (i) call center BI Talk to telephone
number 131; (ii) e-mail, delivered via
Televisi@bi.go.id; (iii) letter to Bank Indonesia
Representative Office DKI Jakarta Province or
Domestic Bank Indonesia Representative Office
closest to the Consumers’ domicile/residence; or
3. via an online complaint form on Bank Indonesia's
official website (website) via www.bi.go.id.
Notes:
Consumers may also resolve
their disputes through (i) the
dispute resolution institute or
agency; or (ii) the court.
9. COMPLIANCE REPORT AND
SUPERVISION
Additional Consumer
Protection Reports
Report on Education
Implementation Plan
Organizers must provide a report on the education
implementation plan no later than November 30
before the start of the education implementation year,
which must include at least:
1. educational work program in accordance with the
Operator's aims and strategies for enhancing
Consumers literacy; and
2. cost requirements and planned company growth,
number of Consumers, as well as factors
affecting the Organizers’ operational activities.
Report on Consumer Complaints
Handling and Resolution
Money Service Activity Organizers, Money
Market and Foreign Exchange Market
Organizers, and other Organizers regulated
and supervised by Bank Indonesia are required
to submit quarterly complaints handling and
resolution reports by the 10th of April, July,
October, and January, which contain at least
data regarding:
1. complaint receipt;
2. complaint processing; and
3. complaint settlement.
Report on Education Implementation
Organizers must submit a report on education
implementation no later than February 28 of the
year the education is implemented, which must
include at least the following information:
1. target;
2. evaluation;
3. objective;
4. activity form;
5. frequency; and
6. region.
Compliance Report by The
Organizers to Bank Indonesia
Supervision by Bank Indonesia
Reports Submission
1. to Bank Indonesia via online and/or offline on a
regular or incidental basis; and/or
2. alternative channels specified by Bank Indonesia.
Bank Indonesia Authorization
Request the Organizers for papers, data,
information, statements, and/or explanations.
Ask the Organizers to do or not do something.
Monitor Organizers activity in implementing
Consumer Protection principle.
Supervising Method
Indirect supervision.
Direct supervision.
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A H R P L e g a l B r i e f
10. We will continue to follow the developments on this topic and provide additional information as it becomes
available. If you have any questions on this topic, please contact:
Hana Oktaviandri
hana@ahrplaw.com
Wildan Hasbia
wildan@ahrplaw.com
Muhammad Farisi
farisi@ahrplaw.com
This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not
intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee concerning
the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it applies to your
circumstances before deciding to take any action.
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