Financial Services Authority Regulation Number 31/POJK.07/2020 Concerning the Management of Consumer and Community Services in the Financial Services Sector by the Financial Services Authority

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 31 /POJK.07/2020
CONCERNING
THE MANAGEMENT OF CONSUMER AND COMMUNITY SERVICES IN THE FINANCIAL SERVICES SECTOR BY THE FINANCIAL SERVICES AUTHORITY BY THE GRACE OF GOD THE ALMIGHTY, THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering: that in order to implement the authority of the Financial Services Authority in preventing consumer harm, and to carry out consumer complaint services as referred to in Article 28 and Article 29, as well as to implement the provisions of Article 31 of Law Number 21 of 2011 concerning the Financial Services Authority, it is necessary to establish a Financial Services Authority Regulation concerning the Management of Consumer and Community Services in the Financial Services Sector by the Financial Services Authority; Recalling: Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);

RESOLVING:
Decree: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE MANAGEMENT OF CONSUMER AND COMMUNITY SERVICES IN THE FINANCIAL SERVICES SECTOR BY THE FINANCIAL SERVICES AUTHORITY.

CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are defined as:

1. Financial Service Institution, hereinafter abbreviated as LJK, is an institution that carries out activities in the Banking, Capital Market, Insurance, Pension Fund, Financing Institution, and Other Financial Service Institution sectors.
2. Financial Service Business Actor, hereinafter abbreviated as PUJK, is a Commercial Bank, Rural Bank/Financing People's Bank, Securities Broker, Investment Manager, Pension Fund, Insurance Company, Reinsurance Company, Financing Institution, Pawnshop Company, Guarantee Company, Information Technology-Based Money Lending Service Provider, Crowdfunding Service Provider, Microfinance Institution, Indonesia Export Financing Institution, PT Permodalan Nasional Madani (Persero), and other LJKs that carry out intermediary activities, fund management, and fund storage in the financial services sector, both those carrying out business activities conventionally and those carrying out business activities sharia-based, based on provisions of legislation in the financial services sector.
3. Consumer is a party that places its funds and/or utilizes available services at PUJK.
4. Integrated Consumer Service System in the Financial Services Sector is a mechanism and device managed by the Financial Services Authority to carry out Consumer and/or community services in the financial services sector.
5. Information is a statement, declaration conveyed in the form of data, facts, or explanations thereof, presented in various packaging and formats.
6. Complaint Indicating Dispute is an expression of dissatisfaction by a Consumer caused by material, fair, and direct losses and/or potential losses to the Consumer because PUJK failed to fulfill the agreed financial transaction agreement and/or documents.
7. Complaint Indicating Violation is a submission of expression by a Consumer and/or community regarding indications of violations of legislation provisions in the financial services sector committed by LJK, which is suspected to have occurred due to LJK's intent or negligence.
8. Complaint is Complaint Indicating Dispute and Complaint Indicating Violation.
9. Complaint Response is an explanation of the problem or an offer for final resolution from PUJK to the Consumer, orally or in writing.
10. Dispute is a disagreement between a Consumer and PUJK that has gone through the complaint resolution process by PUJK and is caused by material, fair, and direct losses and/or potential losses to the Consumer because PUJK failed to fulfill the agreed financial transaction agreement and/or documents.
11. Facilitation is an effort to resolve Disputes by bringing together the Consumer and PUJK to fundamentally re-examine the problem in order to obtain an agreement on the resolution of the Dispute, the results of which are recorded in a deed of agreement or minutes of facilitation.
12. Limited Facilitation is an effort to resolve Disputes by bringing together the Consumer and PUJK to fundamentally re-examine the problem in order to obtain an agreement on the resolution of the Dispute without a deed of agreement or minutes of facilitation.
13. Facilitator is an employee of the Financial Services Authority appointed by the Financial Services Authority to carry out Facilitation.
14. Deed of Agreement is a written document containing the results of the Facilitation agreement that is final and binding for the Consumer and PUJK.
15. Minutes of Meeting is a written document containing the disagreement resulting from Facilitation.

Article 2
The management of Consumer and community services by the Financial Services Authority aims to provide access for Consumers and the community to provide, receive Information and/or resolve Complaints to the Financial Services Authority to realize Consumer and community protection.

Article 3
The management of Consumer and community services in the financial services sector by the Financial Services Authority is implemented based on the principles of utility, justice, security, and legal certainty.

CHAPTER II
TYPES OF CONSUMER AND COMMUNITY SERVICES
Article 4
(1) The Financial Services Authority provides 3 (three) types of services that can be utilized by Consumers and/or Consumer representatives, and the community, namely:
a. information reception services; b. information provision services; and
c. complaint services.
(2) Information that can be received and processed as referred to in paragraph (1) letter a and provided as referred to in paragraph (1) letter b is Information related to the characteristics of the financial services sector, services, products, and other Information.

Article 5
(1) Consumers and/or Consumer representatives, and the community may provide and request Information as referred to in Article 4 paragraph (2) to the Financial Services Authority via mail, electronic mail, the Financial Services Authority website, telephone, face-to-face, and/or other media officially managed by the Financial Services Authority. (2) Consumers and/or Consumer representatives, and the community may submit Complaints to the Financial Services Authority via mail, electronic mail, and/or the Financial Services Authority website.

CHAPTER III
INFORMATION RECEPTION SERVICES
Article 6
(1) The Financial Services Authority may provide responses to Information submitted by Consumers and/or Consumer representatives, and the community.
(2) Responses from the Financial Services Authority as referred to in paragraph (1) are delivered via mail, electronic mail, the Financial Services Authority website, telephone, face-to-face, and/or other media officially managed by the Financial Services Authority.

CHAPTER IV
INFORMATION PROVISION SERVICES
Article 7
(1) The Financial Services Authority provides Information services via mail, electronic mail, the Financial Services Authority website, telephone, face-to-face, and/or other media officially managed by the Financial Services Authority. (2) If Consumers and/or Consumer representatives, and the community request via mail and are accompanied by:
a. mailing address, contact telephone number, or electronic mail address; and b. valid identity documents, the Financial Services Authority will provide information via mail as referred to in paragraph (1).

Article 8
(1) The Financial Services Authority may request Information from LJK via mail and/or electronic mail to carry out Information provision services as referred to in Article 7. (2) LJK is required to fulfill Information requests as referred to in paragraph (1) within a maximum of 10 (ten) working days from the date of submission of the information request via mail and/or electronic mail. (3) If there are conditions beyond LJK's control, LJK may extend the time limit by a maximum of 10 (ten) working days from the expiration of the time limit as referred to in paragraph (2). (4) Requests for time extension as referred to in paragraph (3) must be received in writing by the Financial Services Authority before the time limit as referred to in paragraph (2) expires.

CHAPTER V
COMPLAINT SERVICES
The Financial Services Authority provides services for requests from Consumers and/or Consumer representatives, and the community for resolution efforts:

1. Complaints Indicating Disputes; and/or
2. Complaints Indicating Violations of legislation provisions in the financial services sector.

Section One
Complaint Services Indicating Disputes
Paragraph 1
Receipt and Handling of Complaints Indicating Disputes
Article 10
(1) Consumers and/or Consumer representatives may submit Complaints Indicating Disputes for resolution efforts.
(2) Resolution efforts as referred to in paragraph (1) consist of:
a. Facilitation; or b. Limited Facilitation.
(3) Complaints Indicating Disputes as referred to in paragraph (1) are submitted to the Financial Services Authority:
a. c.q. Member of the Board of Commissioners for Education and Consumer Protection c.q. work unit in the Education and Consumer Protection Field; or b. c.q. Head of Regional Financial Services Authority or Financial Services Authority Office. (4) Complaints Indicating Disputes as referred to in paragraph (1) must meet requirements and document completeness at least as follows:
a. The Consumer has suffered losses and/or potential material losses caused by:

1. Commercial Banks, Rural Banks/Financing People's Banks, Securities Brokers, Investment Managers, Pension Funds, Life Insurance, Reinsurance Companies, Financing Institutions, Pawnshop Companies, Information Technology-Based Money Lending Service Providers, Crowdfunding Service Providers, Guarantee Companies, Microfinance Institutions, Indonesia Export Financing Institutions, PT Permodalan Nasional Madani (Persero), and other LJKs that carry out intermediary activities, fund management, and fund storage in the financial services sector, both those carrying out business activities conventionally and those carrying out business activities sharia-based, with a maximum amount of IDR 500,000,000.00 (five hundred million rupiah); or
2. General Insurance companies, both those carrying out business activities conventionally and those carrying out business activities sharia-based, with a maximum amount of IDR 750,000,000.00 (seven hundred fifty million rupiah).
   b. Complaints Indicating Disputes have undergone resolution efforts by PUJK but were rejected by the Consumer;
   c. The submitted Complaints Indicating Disputes are not Disputes that are currently in process or have ever been decided by a court, arbitration, or alternative dispute resolution institution;
   d. The submitted Complaints Indicating Disputes are civil in nature; e. The submitted Complaints Indicating Disputes have never been facilitated by the Financial Services Authority; f. The submission for resolution of Complaints Indicating Disputes does not exceed 60 (sixty) working days from the date of the Complaint Response. In the event that the Consumer submits an objection to the Complaint Response, the submission for resolution of the Complaint does not exceed 20 (twenty) working days from the date of the response to the objection; and g. A written request containing a description of the Complaint Indicating Dispute accompanied by supporting documents at least including:
3. Consumer identity;
4. Complaint Response;
5. a sworn statement signed on sufficient stamp paper that the Dispute submitted is not currently in process or has never been decided by a court, arbitration, or alternative dispute resolution institution and has never been facilitated by the Financial Services Authority; and
6. other supporting documents related to the Complaint Indicating Dispute.
   (5) The written request as referred to in paragraph (4) letter g uses the form contained in Appendix I which is an integral part of this Financial Services Authority Regulation. (6) The sworn statement as referred to in paragraph (4) letter g number 3 follows the format contained in Appendix II which is an integral part of this Financial Services Authority Regulation. (7) The Consumer completes the documents for Complaints Indicating Disputes with:
   a. proof of receipt of the Complaint Indicating Dispute signed or issued by PUJK; b. proof of submission of the Complaint Indicating Dispute to PUJK; and/or
   c. confirmation of receipt of the Complaint Indicating Dispute orally from PUJK,
   if the Consumer has not received the Complaint Response as referred to in paragraph (4) letter g number 2.
   (8) The Financial Services Authority rejects carrying out resolution efforts for Complaints Indicating Disputes if they do not meet the requirements as referred to in paragraph (4) letters a to f. (9) If there are missing documents for Complaints Indicating Disputes as referred to in paragraph (4) letter g, the Financial Services Authority provides an opportunity for the Consumer to complete the document completeness within a maximum time limit of 20 (twenty) working days from the date of the request. (10) The Consumer is deemed to have cancelled the Complaint Indicating Dispute if they do not submit the document completeness within the time limit as referred to in paragraph (9).

Article 11
(1) The Financial Services Authority conducts review in follow-up to Complaints Indicating Disputes.
(2) The Financial Services Authority may request explanations and/or documents related to Complaints Indicating Disputes from Consumers and/or PUJK in the context of follow-up to Complaints Indicating Disputes. (3) If the Consumer does not respond to the request for explanation as referred to in paragraph (2) within a maximum of 20 (twenty) working days from the date of the request for explanation by the Financial Services Authority, the Consumer is deemed to have cancelled the Complaint Indicating Dispute. (4) PUJK is required to fulfill requests for explanations and/or documents related to Complaints Indicating Disputes from the Financial Services Authority in the context of resolving Complaints Indicating Disputes within a maximum time limit of 10 (ten) working days from the date of the request for explanation and/or documents by the Financial Services Authority. (5) If there are conditions beyond control, PUJK may extend the time limit by a maximum of 10 (ten) working days from the expiration of the time limit as referred to in paragraph (4). (6) Requests for time extension as referred to in paragraph (5) must be received in writing by the Financial Services Authority before the time limit as referred to in paragraph (4) expires.

Paragraph 2
Resolution of Disputes Through Facilitation
Article 12
(1) The Financial Services Authority brings together PUJK and the Consumer in the context of resolving Disputes.
(2) If an agreement is reached in the meeting as referred to in paragraph (1), PUJK is required to implement the agreement.

Article 13
(1) If:
a. in the meeting as referred to in Article 12 paragraph (1) no agreement is reached; b. the Consumer and PUJK agree that the resolution of the Dispute is carried out through Facilitation by the Financial Services Authority; and
c. the alternative dispute resolution institution related to PUJK is not registered with the Financial Services Authority,
the Financial Services Authority carries out Facilitation.
(2) The agreement as referred to in paragraph (1) letter b is recorded in a Facilitation Agreement containing:
a. an agreement to choose the resolution of the Dispute through Facilitation by the Financial Services Authority; and b. approval to obey and submit to the Facilitation rules established by the Financial Services Authority. (3) Facilitation rules as referred to in paragraph (2) letter b include but are not limited to:
a. Consumers and PUJK cannot influence the Facilitator in the effort to resolve the Dispute. b. Agreements resulting from the Facilitation process are voluntary agreements between PUJK and the Consumer and are not recommendations and/or decisions of the Facilitator.
c. Consumers and PUJK cannot request legal opinions or legal consultation services from the Facilitator.
d. The Consumer is required to attend during the implementation of Facilitation, unless the Consumer meets the conditions:

1. health that does not allow attendance at the Facilitation meeting;
2. under guardianship; or
3. carrying out state duties, professional demands, or work that cannot be left.
   e. If the conditions as referred to in letter d are met, the implementation of Facilitation is attended by the Consumer's representative.
   (4) The Consumer is given the opportunity to sign the Facilitation Agreement as referred to in paragraph (2) within a maximum of 10 (ten) working days from the effort to bring together as referred to in Article 12 paragraph (1) failing to reach an agreement. (5) If the time limit as referred to in paragraph (4) is exceeded, the Consumer is deemed to have cancelled the resolution of the Dispute by the Financial Services Authority.

Article 14
(1) The implementation of Facilitation is carried out within a maximum time limit of 30 (thirty) working days from when the Consumer and PUJK sign the Facilitation Agreement. (2) The implementation time limit for Facilitation as referred to in paragraph (1) may be extended by a maximum of 30 (thirty) working days. (3) Extension of the Facilitation time limit is given based on a request from the Consumer or the consideration of the Financial Services Authority. (4) If:
a. an agreement or disagreement has been reached; b. the Facilitation time limit has been exceeded;
c. the Consumer withdraws the request; or
d. PUJK and/or the Consumer do not comply with the Facilitation Agreement, the implementation of Facilitation ends.

Article 15
(1) The Deed of Agreement is signed by the Consumer and PUJK.
(2) The Deed of Agreement as referred to in paragraph (1) contains at least:
a. the names of the agreeing PUJK and Consumer; b. the main points of the agreement; and
c. the time of implementation of the agreement.
(3) If no agreement is reached, the Consumer and PUJK sign the Minutes of Meeting.

Article 16
(1) PUJK is required to implement the results of Facilitation that have been agreed upon and recorded in the Deed of Agreement.
(2) PUJK is required to report the follow-up of the results of Facilitation as referred to in paragraph (1) to the Financial Services Authority no later than 5 (five) working days from the implementation of the agreement.

Paragraph 3
Resolution of Disputes Through Limited Facilitation
Article 17
(1) If:
a. the alternative dispute resolution institution related to PUJK is already registered with the Financial Services Authority; and b. the Consumer submits a confirmation regarding the choice of resolving the Dispute through Limited Facilitation by the Financial Services Authority, the Financial Services Authority carries out Limited Facilitation. (2) The Consumer submits a written confirmation of the choice of resolving the Dispute as referred to in paragraph (1) within a maximum time limit of 20 (twenty) working days from the date of the request for confirmation from the Financial Services Authority. (3) If the time limit for the Consumer's confirmation as referred to in paragraph (2) is exceeded, the Consumer is deemed to have cancelled the request for resolution of the Dispute. (4) If the Consumer chooses to resolve the Dispute through Limited Facilitation by the Financial Services Authority, PUJK is required to follow the implementation of Limited Facilitation.

Article 18
(1) The implementation of Limited Facilitation is carried out within a maximum time limit of 30 (thirty) working days from when the Consumer confirms the choice of resolving the Dispute as referred to in Article 17 paragraph (2). (2) The implementation time limit for Limited Facilitation as referred to in paragraph (1) may be extended by a maximum of 30 (thirty) working days. (3) Extension of the Limited Facilitation time limit is given based on a request from the Consumer or the consideration of the Financial Services Authority. (4) If the Consumer is not present during the implementation of Limited Facilitation, the Consumer is deemed to have cancelled the resolution of the Dispute by the Financial Services Authority. (5) In the event that the Consumer meets the conditions:
a. health that does not allow attendance at the Limited Facilitation meeting; b. under guardianship;
c. notifying the reason for absence to the Financial Services Authority; or
d. carrying out state duties, professional demands, or work that cannot be left, the Consumer's absence is exempted from cancellation as referred to in paragraph (4). (6) In the event that the conditions as referred to in paragraph (5) are met, Limited Facilitation is attended by the Consumer's representative. (7) If:
a. an agreement or disagreement has been reached; b. the Limited Facilitation time limit has been exceeded;
c. the Consumer is absent without notification during the implementation of Limited Facilitation; or
d. the Consumer withdraws the request, the implementation of Limited Facilitation ends.
(8) PUJK is required to implement the results of Limited Facilitation that have been agreed upon.
(9) PUJK is required to report the follow-up of the results of Limited Facilitation as referred to in paragraph (8) to the Financial Services Authority no later than 5 (five) working days from the implementation of the agreement.

Section Two
Complaint Services Indicating Violations
Article 19
(1) Consumers and/or the community may submit Complaints Indicating Violations regarding legislation provisions in the financial services sector to the Financial Services Authority. (2) If Complaints Indicating Violations are accompanied by documents and information at least as follows:
a. identity of the Consumer and/or community; b. mailing address, contact telephone number, or electronic mail address (email); and
c. material or description of the Complaint Indicating Violation,
the Complaints Indicating Violations as referred to in paragraph (1) are followed up.

Article 20
(1) The Financial Services Authority conducts review in follow-up to Complaints Indicating Violations.
(2) The Financial Services Authority may request explanations from Consumers, the community, and/or LJK in the context of follow-up to Complaints Indicating Violations.

Article 21
If based on the review and request for explanation as referred to in Article 20 there are indications of violations of legislation provisions in the financial services sector, the Financial Services Authority may conduct examinations or other actions in accordance with the provisions of legislation.

CHAPTER VI
INTEGRATED CONSUMER SERVICE SYSTEM IN THE FINANCIAL SERVICES SECTOR
Article 22
(1) Consumers and/or the community may submit Complaints through the Integrated Consumer Service System in the Financial Services Sector.

(2) Financial Service Institutions (FSIs) are required to monitor Complaints on the Integrated Consumer Service System in the Financial Services Sector. (3) If there are Complaints related to FSIs as monitored in accordance with paragraph (2), FSIs are required to follow up on Complaints based on the provisions in the Financial Services Authority Regulation regarding Consumer Complaint Services in the Financial Services Sector. (4) FSIs are required to inform the Financial Services Authority of the follow-up on Complaints through the Integrated Consumer Service System in the Financial Services Sector. (5) Consumers may utilize the complaint resolution monitoring facility on the Integrated Consumer Service System in the Financial Services Sector. (6) In the event that the Integrated Consumer Service System in the Financial Services Sector experiences a disruption, FSIs submit information as referred to in paragraph (4) offline, accompanied by written notification sent via letter to the Financial Services Authority:
a. c.q. Member of the Board of Commissioners for Consumer Education and Protection c.q. work unit in the Consumer Education and Protection Division; or b. c.q. Head of Regional Office of the Financial Services Authority or Financial Services Authority Office. (7) If Consumers reject the Complaint Response and/or the response to objections in writing submitted by FSIs in the Integrated Consumer Service System in the Financial Services Sector, Consumers may submit complaint resolution through the court or outside the Court. (8) Complaint resolution outside the court as referred to in paragraph (7) is conducted through Alternative Dispute Resolution Institutions in the Financial Services Sector.

CHAPTER VII
ADMINISTRATIVE SANCTIONS
Article 23
(1) Financial Service Institutions (FSIs), whether conducting business activities conventionally or sharia, excluding Private Pawnshops, Microfinance Institutions, and other FSIs conducting intermediary activities, fund management, and fund storage in the financial services sector, that violate the provisions as referred to in Article 8 paragraph (2), are subject to administrative sanctions in the form of fines, namely the obligation to pay an amount of IDR 50,000.00 (fifty thousand rupiah) per day of delay and at most IDR 5,000,000.00 (five million rupiah). (2) FSIs, excluding Private Pawnshops and Microfinance Institutions, that violate the provisions as referred to in Article 11 paragraph (4), Article 16 paragraph (2), and Article 18 paragraph (9), are subject to administrative sanctions in the form of fines, namely the obligation to pay an amount with the following details:
a. IDR 100,000.00 (one hundred thousand rupiah) per day of delay and at most IDR 10,000,000.00 (ten million rupiah) for FSIs in the form of Commercial Banks, Securities Trading Brokers, Investment Managers, Pension Funds, Insurance Companies, Reinsurance Companies, Infrastructure Financing Companies, Government Pawnshops, Information Technology-Based Money Lending and Borrowing Service Providers, Crowdfunding Service Providers, Indonesian Export Financing Institution, PT Permodalan Nasional Madani (Persero); or b. IDR 50,000.00 (fifty thousand rupiah) per day of delay and at most IDR 5,000,000.00 (five million rupiah) for FSIs in the form of People's Credit Banks/Financing, Financing Companies, Venture Capital, and Guarantee Companies. (3) Private Pawnshops, Microfinance Institutions, and other FSIs conducting intermediary activities, fund management, and fund storage in the financial services sector, whether conducting business activities conventionally or sharia, that violate the provisions as referred to in Article 8 paragraph (2), Article 11 paragraph (4), Article 16 paragraph (2), and Article 18 paragraph (9), are subject to administrative sanctions in the form of written warnings.

Article 24
(1) Violations of the provisions as referred to in Article 12 paragraph (2), Article 16 paragraph (1), Article 17 paragraph (4), Article 18 paragraph (8), and Article 22 paragraph (2), paragraph (3), and paragraph (4), may be subject to administrative sanctions in the form of:
a. written warnings or reprimands; b. reduction in health rating assessment;
c. restriction of business activities; and/or
d. suspension of business activities.
(2) Sanctions as referred to in paragraph (1) letter b and letter c may be imposed with or without prior imposition of written warning sanctions as referred to in paragraph (1) letter a.

CHAPTER VIII
OTHER PROVISIONS
Article 25
Complaints related to the implementation of monetary authority, payment system, and macroprudential tasks may be submitted to the relevant authority in accordance with the provisions of legislation.

CHAPTER IX
TRANSITIONAL PROVISIONS
Article 26
(1) Receipt, Handling, and Resolution of Complaints with Dispute Indicators through Limited Facilitation as referred to in Article 10 paragraph (2) letter b, Article 17, and Article 18 are only conducted for Complaints with Dispute Indicators received by the Financial Services Authority no later than December 31, 2020. (2) The Integrated Consumer Service System in the Financial Services Sector as referred to in Article 22 takes effect starting January 1, 2021.

CHAPTER X
CLOSING PROVISIONS
Article 27
At the time this Financial Services Authority Regulation takes effect, regulations governing the resolution of Consumer and Community Complaints as referred to in:

1. Bank Indonesia Regulation Number 8/5/PBI/2006 regarding Banking Mediation;
2. Bank Indonesia Regulation Number 10/1/PBI/2008 regarding Amendments to PBI Number 8/5/PBI/2006 regarding Banking Mediation;
3. Article 40, Article 41, Article 42, Article 43, Article 44, Article 45, and Article 46 of Financial Services Authority Regulation Number 1/POJK.07/2013 regarding Consumer Protection in the Financial Services Sector; and
4. Bank Indonesia Circular Letter Number 8/14/DPNP dated June 1, 2006 regarding Banking Mediation,
   are repealed and declared invalid.

Article 28
This Financial Services Authority Regulation takes effect on July 1, 2020.

This copy is consistent with the original
Deputy Director of Legal Consultancy and Banking Regulation Harmonization 1 Legal Directorate 1 Legal Department signed Wiwit Puspasari

To be known by everyone, ordering the enactment of this Financial Services Authority Regulation by placing it in the State Bulletin of the Republic of Indonesia. Established in Jakarta on April 22, 2020 CHAIRMAN OF THE BOARD OF COMMISSIONERS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed WIMBOH SANTOSO

Enacted in Jakarta on April 29, 2020
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA signed
YASONNA H. LAOLY
STATE BULLETIN OF THE REPUBLIC OF INDONESIA YEAR 2020 NUMBER 123

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 31 /POJK.07/2020
REGARDING
CONSUMER AND COMMUNITY SERVICE MANAGEMENT IN THE FINANCIAL SERVICES SECTOR BY THE FINANCIAL SERVICES AUTHORITY

I. GENERAL
Based on Article 4 of Law Number 21 of 2011 concerning the Financial Services Authority, it is stated that one of the objectives of the Financial Services Authority is that all activities within the financial services sector are able to protect the interests of Consumers and the community. In order to realize the mandate of Consumer and community protection, the Financial Services Authority initiates various efforts that are synergistic with relevant stakeholders. These efforts to protect Consumers and the community are directed towards achieving two main objectives, namely: first, increasing Consumer and community confidence in every activity and business activity in the financial services sector (market confidence); and second, providing opportunities and chances for the development of FSIs fairly, efficiently, and transparently, while on the other hand, Consumers understand their rights and obligations related to the characteristics of the financial services sector, services, and products.

In order to achieve these two main objectives, the Financial Services Authority implements loss prevention measures for Consumers and the community and complaint services in accordance with the mandate of Article 28 and Article 29 of Law Number 21 of 2011 concerning the Financial Services Authority. One of the loss prevention measures implemented by the Financial Services Authority is by providing information and education to Consumers and the community. Along with the rapid development of financial services sector products and services, the need of Consumers and the community for information related to the characteristics of the financial services sector, services, and products has increased. The effort to provide information by the Financial Services Authority is expected to drive the fulfillment of this information need. In addition, the Financial Services Authority also implements one of the complaint services by facilitating the resolution of Complaints from Consumers who are harmed by actors in the financial services sector if internal dispute resolution does not result in an agreement between the Consumer and the FSI.

In Financial Services Authority Regulation Number 1/POJK.07/2013 regarding Consumer Protection in the Financial Services Sector, it was stated that the Financial Services Authority provides facilitation for the resolution of Consumer Complaints but is not comprehensive, so improvements are needed by adding regulations such as details of the complaint follow-up mechanism, provision of options for Facilitation or Limited Facilitation efforts by the Financial Services Authority, timeframes for implementing such resolution efforts, and the obligation of FSIs to implement the results of agreements.

Currently, the Financial Services Authority provides information receipt services, information provision services, and complaint services through the Integrated Consumer Service System in the Financial Services Sector. With the Integrated Consumer Service System in the Financial Services Sector, the implementation of services to Consumers and the community can be handled clearly and comprehensively. However, the Financial Services Authority needs to continuously improve the management of this service system to be more reliable and informative. One of them is by issuing supporting regulations for the implementation of the Integrated Consumer Service System.

The existence of external regulations detailing the flow and timeframes for dispute resolution that can be monitored through the system, as well as the presence of Facilitation and Limited Facilitation for Consumers followed up by the Financial Services Authority, is one of the efforts by the Financial Services Authority to create legal certainty for the parties involved in the event that Consumers and/or FSIs expect resolution through the Financial Services Authority. From the other side, both FSIs, Consumers, and the community will know the devices, mechanisms, and requirements for the implementation of the Financial Services Authority's consumer services. The issuance of external regulations in the form of Financial Services Authority Regulations is also the implementation of the Consumer protection mandate mandated in Article 31 of Law Number 21 of 2011 concerning the Financial Services Authority.

II. ARTICLE BY ARTICLE
Article 1
Clear enough.
Article 2
Clear enough.
Article 3
What is meant by "benefit principle" is all efforts in the management of Consumer services in the financial services sector must provide maximum benefit for the interests of Consumers and the community as well as Financial Service Institutions as a whole. What is meant by "fairness principle" is to provide opportunities for Consumers and the community as well as Financial Service Institutions to obtain their rights and fulfill their obligations fairly. What is meant by "security principle" is to provide guarantees of confidentiality of Consumer, community, and/or Financial Service Institution data and/or Information in the management of Consumer and community services in the financial services sector. What is meant by "legal certainty principle" is so that both Financial Service Institutions and Consumers and the community obey the law and obtain justice in the management of Consumer services in the financial services sector.

Article 4
Paragraph (1)
Consumer Representatives act on behalf of Consumers based on a special power of attorney from the Consumer.

Letter a
Information receipt services are services provided by the Financial Services Authority for Information/reports submitted by Consumers and/or the community.

Letter b
Information provision services are services provided by the Financial Services Authority in response to Information requests and/or inquiries submitted by Consumers and/or the community.

Letter c
Clear enough.

Paragraph (2)
Information related to the characteristics of the financial services sector, services, and products includes among others:

1. banking sector includes among others savings, safe deposit boxes, credit/financing based on sharia principles, institutional matters, and bank licensing.
2. non-bank financial industry sector includes among others life insurance, general insurance, bancassurance, multi-purpose financing, vehicle financing based on sharia principles, disbursement of loan funds with guarantees based on pawn law, definite contribution pension programs, Licensed and Registered Information Technology-Based Money Lending and Borrowing Service Providers, institutional matters, and Non-Bank Financial Industry licensing.
3. capital market sector includes among others bonds, stocks, sukuk, mutual funds, institutional matters, and Capital Market licensing.
   What is meant by "Other Information" is Information related to systems and Information managed by the Financial Services Authority and illegal investments.

Article 5
Paragraph (1)
What is meant by "telephone" is the Financial Services Authority contact service telephone.
Face-to-face meetings known by the international term are walk-ins.

Paragraph (2)
Clear enough.

Article 6
Clear enough.

Article 7
Paragraph (1)
Information provision via letters can be done by attaching letters to electronic mail (email).

Paragraph (2)
Clear enough.

Article 8
Paragraph (1)
Information requests via letters can be done by attaching letters to electronic mail (email).

Paragraph (2)
Information requests via letters can be done by attaching letters to electronic mail (email).
Information requests to FSIs can be in the form of documents or Information needed in the context of fulfilling Information requested by the community and Consumers.

Paragraph (3)
Conditions outside the control of FSIs include, for example, the involvement of third parties outside the FSI in fulfilling Information requests.

Paragraph (4)
Clear enough.

Article 9
Clear enough.

Article 10
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Letter a
Clear enough.

Letter b
What is meant by "rejected" is rejecting the Complaint Response or the objection response submitted by the FSI.

Letter c
Alternative dispute resolution institutions include Alternative Dispute Resolution Institutions in the Financial Services Sector that have obtained approval from the Financial Services Authority.

Letter d
Clear enough.

Letter e
What is meant "facilitated by the Financial Services Authority" is Facilitation or Limited Facilitation.
Examples of Complaints facilitated are Complaints where resolution efforts have been made but no agreement was reached.

Letter f
Clear enough.

Number 1
Examples of Consumer identity can include Identity Cards, Driver's Licenses, or valid passports, including family cards and birth certificates for Consumers under 17 (seventeen) years of age.

Number 2
Complaint Responses include, among others, via letters or electronic mail (email).

Number 3
Clear enough.

Number 4
Other supporting documents are documents that are directly owned and/or can be obtained by the Consumer.
Examples of supporting documents for complained issues include deposit slips, transfer proofs, payment proofs, and/or domicile letters, death certificates, transaction statements/monthly account statements, responses to objections.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
What is meant by "Consumer has not received the Complaint Response" is that the FSI has not submitted the Complaint Response after the complaint handling timeframe as regulated in the Financial Services Authority Regulation regarding Consumer Complaint Services in the financial services sector has expired. Proof of having submitted a Complaint can include, among others, a delivery receipt from a courier company with the delivery address to the FSI address.

Paragraph (8)
Clear enough.

Paragraph (9)
Clear enough.

Paragraph (10)
Clear enough.

Article 11
Paragraph (1)
Clear enough.

Paragraph (2)
Requests for explanations by the Financial Services Authority to Consumers and/or FSIs can be conducted among others:

1. directly, namely face-to-face; or
2. indirectly via letters or electronic mail (email).

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Article 12
Paragraph (1)
What is meant by "meeting" is a meeting between FSIs and Consumers in the context of requesting further explanations and dispute resolution efforts conducted before the implementation of Facilitation.

Paragraph (2)
Clear enough.

Article 13
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Letter a
What is meant by "cannot influence the Facilitator" is that in performing their duties, the Facilitator remains neutral, impartial, and strives to assist the parties in dispute resolution.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
Each condition is accompanied by supporting documents. For example, for health conditions that prevent attendance at Facilitation meetings, a doctor's letter is provided.

Letter e
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Article 14
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Letter a
Disagreement also includes cases of deadlock.

Letter b
Clear enough.

Letter c
Clear enough.

Letter d
What is meant by not complying with the Facilitation agreement includes, among others, consumers not attending the facilitation agreement signing.

Article 15
Clear enough.

Article 16
Clear enough.

Article 17
Paragraph (1)
Letter a
Given that alternative dispute resolution institutions are already available, Consumers reaffirm their choice of dispute resolution, namely through alternative dispute resolution institutions or Limited Facilitation. If Consumers choose through alternative dispute resolution institutions, the Financial Services Authority will forward the Dispute to the alternative dispute resolution institution. If Consumers choose through Limited Facilitation, the Financial Services Authority continues the Limited Facilitation process.

Letter b
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Article 18
Paragraph (1)
Clear enough.

Paragraph (2)
Clear enough.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Each condition is accompanied by supporting documents. For example, for health conditions that prevent attendance at Limited Facilitation meetings, a doctor's letter is provided.

Paragraph (6)
Clear enough.

Paragraph (7)
Letter a
Clear enough.

Letter b
Clear enough.

Letter c
Consumers submit information regarding non-attendance in the Limited Facilitation process to the Financial Services Authority via letters, electronic mail (email), or telephone. Non-attendance information is submitted before the Limited Facilitation process is implemented.

Letter d
Clear enough.

Paragraph (8)
The results of Limited Facilitation that have been agreed upon are documented, among others, in meeting minutes.

Paragraph (9)
Clear enough.

Article 19
Paragraph (1)
Clear enough.

Paragraph (2)
Letter a
Examples of Consumer and/or community identity can include valid Identity Cards, Driver's Licenses, or passports, including family cards and birth certificates for Consumers under 17 (seventeen) years of age.

Letter b
Clear enough.

Letter c
Clear enough.

Article 20
Clear enough.

Article 21
Other actions that can be taken by the Financial Services Authority include among others requesting FSIs to stop their activities, improve systems, formulate standard operating procedures, and/or withdraw advertisements.

Article 22
Paragraph (1)
Clear enough.

Paragraph (2)
The Financial Services Authority provides access rights to FSIs to utilize the complaint resolution monitoring facility on the Integrated Consumer Service System in the Financial Services Sector.

Paragraph (3)
Clear enough.

Paragraph (4)
Clear enough.

Paragraph (5)
Clear enough.

Paragraph (6)
Clear enough.

Paragraph (7)
Clear enough.

Paragraph (8)
What is meant by Alternative Dispute Resolution Institutions in the Financial Services Sector is Alternative Dispute Resolution Institutions in the Financial Services Sector that have obtained approval from the Financial Services Authority.

Article 23
Clear enough.

Article 24
Clear enough.

Article 25
What is meant by "relevant authority" in this case is Bank Indonesia.

Article 26
Clear enough.

Article 27
Clear enough.

Article 28
Clear enough.

SUPPLEMENT TO THE STATE BULLETIN OF THE REPUBLIC OF INDONESIA NUMBER 6507

APPENDIX I
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 31 /POJK.07/2020
REGARDING
CONSUMER AND COMMUNITY SERVICE MANAGEMENT IN THE FINANCIAL SERVICES SECTOR BY THE FINANCIAL SERVICES AUTHORITY COMPLAINT SERVICE REQUEST FORM CONSUMER/COMMUNITY IDENTITY Name M/F Address RT RW Village/District Sub-district Regency/City Province Postal Code Telephone Number Home Telephone Office Telephone Mobile Phone Identity Number ID Card Driver's License Passport Other Identity … Email Date of Power of Attorney (if represented) Authorized Recipient COMPLAINT DESCRIPTION Name FSI* Address FSI Head Office Branch Office Other Office… Agreement/Transaction Document in Dispute Amount Loss In Words Disputed issues have been attempted to be resolved with the FSI Yes No Disputes submitted are not currently in process or have been decided by arbitration institutions, courts, or other dispute resolution institutions Yes No Complaint registration number to FSI Date of complaint submission to FSI Complaint Response letter number from FSI Date of Complaint Response letter from FSI

*) FSI means Commercial Banks, People's Credit Banks/Financing, Securities Trading Brokers, Investment Managers, Pension Funds, Insurance Companies, Reinsurance Companies, Financing Companies, Pawnshops, Guarantee Companies, Information Technology-Based Money Lending and Borrowing Service Providers, Crowdfunding Service Providers, Microfinance Institutions, Indonesian Export Financing Institution, PT Permodalan Nasional Madani (Persero), and other FSIs conducting intermediary activities, fund management, and fund storage in the financial services sector, whether conducting business activities conventionally or sharia, based on provisions of legislation in the financial services sector. )Material, fair, and direct losses and/or potential losses This copy is consistent with the original Deputy Director of Legal Consultancy and Banking Regulation Harmonization 1 Legal Directorate 1 Legal Department signed Wiwit Puspasari SUPPORTING DOCUMENTS Supporting documents attached:
Photocopy of identity documents
Photocopy of Complaint Response from FSI
Photocopy of transaction proofs
Statement of Dispute not currently being processed or ever decided by arbitration institutions, courts, or other dispute resolution institutions ` Photocopy of power of attorney (if represented) … … BRIEF DESCRIPTION OF COMPLAINT …, ………………………………….. (………………………………….) Established in Jakarta on April 22, 2020 CHAIRMAN OF THE BOARD OF COMMISSIONERS FINANCIAL SERVICES AUTHORITY REPUBLIC OF INDONESIA, signed WIMBOH SANTOSO

APPENDIX II
REGULATION OF THE FINANCIAL SERVICES AUTHORITY NUMBER 31 /POJK.07/2020 REGARDING CONSUMER AND COMMUNITY SERVICE MANAGEMENT IN THE FINANCIAL SERVICES SECTOR BY THE FINANCIAL SERVICES AUTHORITY

STATEMENT LETTER

In connection with the submission of dispute resolution through Facilitation/Limited Facilitation, I hereby:
Name :
Identity Number :
Address :
hereby declare that the issue I submit to the Financial Services Authority (OJK) is not currently in the process of being decided or has never been decided by an arbitration institution, court, or other mediation institution, including alternative dispute resolution institutions, and has never been facilitated by the OJK.

If the statement I provide above does not correspond to the actual situation, the OJK has the right to reject the dispute resolution submission request I submit or to stop the course of the Facilitation/Limited Facilitation process.

This statement letter is made consciously and without coercion from any party.

…………..……,…………………..
Stamp Duty
(………………………………….)
*) Material, fair, and direct losses and/or potential losses

This copy is consistent with the original
Deputy Director of Legal Consultation and
Harmonization of Banking Regulations 1
Legal Directorate 1
Legal Department signed
Wiwit Puspasari

Determined in Jakarta on April 22, 2020
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO