Bank Indonesia has introduced new stringent consumer protection regulations (New Regulations) that apply to any party providing consumer products or services, which are regulated by Bank Indonesia.*

The New Regulations aim to foster transparency and public trust in banking services, particularly in digital banking services. For example, the New Regulations provide that service providers must compensate consumers for losses incurred if the losses are the service providers’ fault. Further, service provides must have robust internal mechanisms for handling consumer complaints.

The New Regulations provide consumers with further protection by regulating, for the first time, the financial sector’s alternative dispute resolution instititions and requiring consumers to be kept fully informed of the status of their dispute.

The New Regulations provide for an expanded range of administrative sanctions for service providers who are in violation, including:

• suspension of products, services, and/or business activities in part or in whole; and
• dismissal of management.

The New Regulations came into force on 14 December 2023.

* Members of the Board of Governors Regulation No. 20 Of 2023 on the Procedures for The Implementation of Bank Indonesia Consumer Protection