Consumer Protection: New Regulations

You are currently viewing Consumer Protection: New Regulations
Image source: https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcTW0Xq0OUHekL8-BIg5TnzWiRQDMJmxIgDE0Q&usqp=CAU

On 22 December 2020, Bank Indonesia issued new regulations on consumer protection (the Regulations).* While the previous regulations** cover consumer protection in relation to payment systems, the new Regulations cover consumer protection across all sectors under Bank Indonesia’s authority including monetary, macroprudential, and payment systems. The new Regulations apply to all organisations that are regulated and/or supervised by Bank Indonesia as well as their customers.

The Regulations set out the obligations of organisations to protect its customers including:

  • providing special services for customers with special needs;
  • increasing customer literacy;
  • confidentiality, data security and risk management obligations; and
  • clear complaints and dispute resolution procedures.

The Regulations also contain reporting obligations.

Organisations that breach the obligations may be subject to administrative sanctions in the form of written warnings, temporary suspension, and license revocation.

* Bank Indonesia Regulation No. 22/20/PBI/2020 of 2020 on Consumer Protection of Bank Indonesia.

** Bank Indonesia Regulation No. 16/1/PBI/2014 of 2014 on Consumer Protection in Payment System Service (revoked by the Regulations).