Financial Services Authority Regulation Number 61/POJK.07/2020 Concerning Alternative Dispute Resolution Institutions in the Financial Services Sector

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHABILITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 61/POJK.07/2020
CONCERNING
ALTERNATIVE DISPUTE RESOLUTION INSTITUTIONS IN THE FINANCIAL SERVICES SECTOR BY THE GRACE OF THE ALMIGHTY GOD, THE BOARD OF COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that the resolution of consumer complaints in the financial services sector by financial business actors does not always result in agreements, which may lead to disputes between consumers and financial business actors; b. that to meet the needs of consumers in the financial services sector for dispute resolution outside of court, it is necessary to establish regulations regarding alternative dispute resolution institutions in the financial services sector;
c. that in its development, Financial Services Authority Regulation Number 1/POJK.07/2014 concerning Alternative Dispute Resolution Institutions in the Financial Services Sector requires improvement to realize alternative dispute resolution institutions in the financial services sector that are more effective and efficient, and to respond to the development of technology, products, and financial services offerings that are increasingly complex and cross-sectoral, thus requiring replacement;
d. that based on the considerations referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation concerning Alternative Dispute Resolution Institutions in the Financial Services Sector;

Recalling:

1. 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);
2. Financial Services Authority Regulation Number 1/POJK.07/2013 concerning Consumer Protection in the Financial Services Sector (State Gazette of the Republic of Indonesia Year 2013 Number 118, Supplement to the State Gazette of the Republic of Indonesia Number 5431);

DECIDES:
Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING ALTERNATIVE DISPUTE RESOLUTION INSTITUTIONS IN THE FINANCIAL SERVICES SECTOR.

CHAPTER I
GENERAL PROVISIONS

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

1. Alternative Dispute Resolution Institution in the Financial Services Sector, hereinafter referred to as Financial Services ADR, is an institution that conducts dispute resolution in the financial services sector outside of court.
2. Financial Business Actor, hereinafter abbreviated as FBA, means Universal Banks, People's Credit/Financing Banks, Securities Trading Intermediaries, Investment Managers, Pension Funds, Insurance Companies, Reinsurance Companies, Financing Institutions, Pawnshop Companies, Guarantee Companies, Information Technology-Based Borrowing and Lending Service Providers, Crowdfunding Service Providers, Microfinance Institutions, Indonesia Export Financing Agency, PT Permodalan Nasional Madani (Persero), and other financial services institutions that conduct intermediary activities, fund management, and fund storage in the financial services sector, both those conducting business activities on a conventional basis and those on a Sharia basis, based on applicable laws and regulations in the financial services sector.
3. Consumer is a party that places its funds and/or utilizes services available at the FBA.
4. Management is the organ that performs the management functions of the Financial Services ADR for the benefit of the Financial Services ADR in accordance with the purpose and objectives of the Financial Services ADR, and represents the Financial Services ADR both inside and outside of court in accordance with the articles of association.
5. Supervisory Board is the organ within the Financial Services ADR that plays a role in performing general and/or specific supervision functions in accordance with the articles of association, and provides advice to the Management in carrying out the management of the Financial Services ADR.
6. Dispute is a disagreement between a Consumer and an FBA that has gone through the complaint resolution process by the FBA and is caused by actual and/or potential material, reasonable, and direct losses to the Consumer because the FBA failed to fulfill the agreement and/or financial transaction documents that have been agreed upon.

Article 2
The Financial Services ADR is established with the objective that dispute resolution services in the financial services sector:
a. are conducted independently, fairly, effectively, and efficiently, and are easily accessible; and b. are trusted by Consumers and FBAs.

CHAPTER II
FUNCTIONS, TASKS, AND AUTHORITY

Article 3
The Financial Services ADR functions to provide integrated dispute resolution services in the financial services sector.

Article 4
To implement the function as referred to in Article 3, the Financial Services ADR has the following tasks and authority:
a. handling and resolving Consumer Disputes; b. providing consultation on dispute resolution in the financial services sector;
c. conducting research and development of dispute resolution services in the financial services sector;
d. making regulations in the context of dispute resolution in the financial services sector; e. cooperating with consumer protection institutions/agencies, both national and international; and f. developing the competence of mediators and arbitrators registered with the Financial Services ADR.

CHAPTER III
INSTITUTIONALIZATION AND IMPLEMENTATION OF FINANCIAL SERVICES ADR

First Section
Requirements

Paragraph 1
Legal Entity Form

Article 5
The legal entity form of the Financial Services ADR is an association legal entity registered with the Ministry that handles government affairs in the field of law and human rights.

Paragraph 2
Procedure for Requesting Approval

Article 6
Dispute resolution in the financial services sector outside of court for all FBAs is conducted by 1 (one) Financial Services ADR.

Article 7
The Financial Services ADR as referred to in Article 6 must obtain approval from the Financial Services Authority.

Article 8
(1) The request for approval of the Financial Services ADR as referred to in Article 7 is submitted by the Financial Services ADR to the Member of the Board of Commissioners of the Financial Services Authority in the field of Education and Consumer Protection, accompanied by documents. (2) The documents as referred to in paragraph (1) include:
a. the deed of establishment of the legal entity; b. regulations whose content includes:

1. types of dispute resolution services;
2. dispute resolution procedures;
3. dispute resolution cost scale based on dispute categories;
4. dispute resolution timeframes;
5. provisions related to conflicts of interest and affiliation for mediators and arbitrators;
6. code of ethics, requirements, sanctions, evaluation procedures and methods, and evaluations for mediators and arbitrators; and
7. sanctions for members who violate regulations established by the Financial Services ADR; and
   c. annual work plan and budget.
   (3) In addition to submitting the documents as referred to in paragraph (2), to obtain approval from the Financial Services Authority, the Financial Services ADR must meet the following requirements:
   a. having at least 2 (two) dispute resolution services, namely:
8. mediation; and
9. arbitration.
   b. having adequate resources to be able to implement dispute resolution services;
   c. being established by FBAs coordinated by an association in the financial services sector and/or Self Regulatory Organization (SRO); and
   d. having at least the following organs:
10. General Meeting of Members;
11. Supervisory Board; and
12. Management.
    (4) Further provisions regarding the procedure for approval or rejection of regulations as referred to in paragraph (2) letter b are established by the Financial Services Authority.

Second Section
Articles of Association

Article 9
(1) The articles of association or amendments to the articles of association of the Financial Services ADR are established by the General Meeting of Members.
(2) The articles of association of the Financial Services ADR must contain at least:
a. name and domicile; b. purpose and objectives, as well as association activities;
c. duration of establishment;
d. acquisition and use of assets; e. rights and obligations of members; f. authority, organization, and membership of the General Meeting of Members; g. procedures for nomination, appointment, replacement, and dismissal of Management and Supervisory Board; h. tasks and authority of Management and Supervisory Board;
i. procedures for implementation and decision-making in Management and Supervisory Board meetings; and
j. dissolution and use of remaining assets after liquidation.
(3) The Financial Services ADR must submit amendments to the articles of association as referred to in paragraph (1) to the Financial Services Authority to obtain approval before holding the General Meeting of Members. (4) The Financial Services Authority provides approval or rejection of amendments to the articles of association as referred to in paragraph (3) within a maximum of 20 (twenty) working days from the date complete amendment documents are received by the Financial Services Authority. (5) The Financial Services ADR establishes amendments to the articles of association that have been approved by the Financial Services Authority in the General Meeting of Members and follows up based on applicable laws and regulations.

Third Section
Regulations

Article 10
(1) The Financial Services ADR must periodically evaluate its regulations as referred to in Article 8 paragraph (2) letter b at least 1 (one) time within 1 (one) year. (2) If based on the evaluation as referred to in paragraph (1) improvements are needed, the Financial Services ADR submits a draft amendment to the regulations as referred to in paragraph (1) to the Financial Services Authority to obtain approval. (3) The Financial Services Authority provides approval or rejection of draft amendments to the regulations as referred to in paragraph (2) within a maximum of 30 (thirty) working days from the date complete draft amendment documents are received. (4) Draft amendments to the regulations as referred to in paragraph (2) take effect after obtaining approval from the Financial Services Authority.

Fourth Section
Membership

Article 11
FBAs must:
a. become members of the Financial Services ADR; b. pay membership fees to the Financial Services ADR;
c. implement agreements and decisions of the Financial Services ADR; and
d. publicize the Financial Services ADR through official websites or other media managed officially by the FBA.

Fifth Section
General Meeting of Members

Article 12
(1) The General Meeting of Members has authority not granted to the Management or Supervisory Board within the limits determined in this Financial Services Authority Regulation and/or the articles of association. (2) The authority determined in this Financial Services Authority Regulation as referred to in paragraph (1) includes:
a. establishing the articles of association and amendments to the articles of association; b. appointing, replacing, and dismissing Management and/or Supervisory Board;
c. requesting information from Management and/or Supervisory Board in the implementation of their respective tasks;
d. establishing salaries, allowances, and/or honoraria for Management and Supervisory Board; e. approving the annual work plan and budget, including member fees; f. establishing public accountants; and g. assessing and approving annual reports containing at least:

1. financial reports audited by public accountants registered with the Financial Services Authority;
2. management reports conducted by the Management; and
3. supervision reports conducted by the Supervisory Board.

Article 13
The General Meeting of Members is held within the territory of the Unitary State of the Republic of Indonesia.

Article 14
(1) The General Meeting of Members consists of annual General Meetings of Members and extraordinary General Meetings of Members.
(2) Annual General Meetings of Members are held 1 (one) time per year.
(3) Extraordinary General Meetings of Members may be held at any time based on needs for the benefit of the Financial Services ADR.
(4) Annual General Meetings of Members and/or extraordinary General Meetings of Members may be conducted via electronic media.

Article 15
(1) The Financial Services ADR submits decisions of the General Meeting of Members to the Financial Services Authority.
(2) Decisions of the General Meeting of Members as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than 14 (fourteen) working days after the holding of the General Meeting of Members. (3) In the event that decisions of the General Meeting of Members:
a. are assessed to potentially endanger the interests of the Financial Services ADR; and/or b. do not comply with applicable laws and regulations, the Financial Services Authority has the authority to cancel them. (4) In the event that decisions of the General Meeting of Members are cancelled by the Financial Services Authority, the Financial Services ADR must hold a General Meeting of Members again.

Sixth Section
Management

Article 16
(1) The management of the Financial Services ADR is carried out by the Management.
(2) The Management is appointed and dismissed by the General Meeting of Members.
(3) The Management as referred to in paragraph (1) consists of an odd number of at least 3 (three) persons, one of whom is appointed as chairman.
(4) The Management is prohibited from holding concurrent positions as members of the Board of Directors or employees of other companies or institutions in any capacity. (5) The Management is appointed for a term of office of a maximum of 5 (five) years and may be appointed again for 1 (one) term of office.

Article 17
(1) The Management must obtain approval from the Financial Services Authority before carrying out management duties.
(2) Approval as referred to in paragraph (1) is provided by the Financial Services Authority after conducting a Fit and Proper Interview.
(3) The Fit and Proper Interview is conducted to assess that the Management meets the requirements:
a. integrity; b. financial reputation; and
c. competence,
as established by the Financial Services Authority.
(4) The integrity requirements as referred to in paragraph (3) letter a include:
a. legal capacity to perform legal acts; b. having good ethics and morality, at least demonstrated by a attitude of complying with applicable laws and regulations, including never being sentenced for proven criminal acts within a certain period before nomination;
c. having a commitment to comply with applicable laws and regulations and support Financial Services Authority policies;
d. having a commitment to the healthy development of the Financial Services ADR; and e. not being included as parties prohibited from becoming principal parties as referred to in Financial Services Authority Regulation concerning Fit and Proper Assessment for Principal Parties of Financial Services Institutions. (5) The financial reputation requirements as referred to in paragraph (3) letter b are evidenced at least by:
a. not having non-performing loans and/or financing; and b. never being declared bankrupt and/or never having been a controller who is a shareholder or not, a member of the Board of Directors, or a member of the Board of Commissioners who was declared guilty causing a company to be declared bankrupt within the last 5 (five) years before nomination. (6) The competence requirements as referred to in paragraph (3) letter c must at least have knowledge and/or experience supporting the management of the Financial Services ADR. (7) Candidate Management members who have obtained approval from the Financial Services Authority as referred to in paragraph (2) are appointed by the General Meeting of Members. (8) In the event there are indications of involvement and/or responsibility for integrity, financial reputation, and competence issues as referred to in paragraph (3), the Financial Services Authority has the authority to conduct a Fit and Proper Interview again with the Management. (9) Further provisions regarding the Fit and Proper Interview for the Management of the Financial Services ADR are established by the Financial Services Authority.

Seventh Section
Supervisory Board

Article 18
(1) Supervision of the management of the Financial Services ADR is carried out by the Supervisory Board.
(2) The Supervisory Board is appointed and dismissed by the General Meeting of Members.
(3) The Supervisory Board as referred to in paragraph (1) consists of at least 3 (three) persons.
(4) The Supervisory Board is appointed for a term of office of a maximum of 5 (five) years and may be appointed again for 1 (one) term of office.

Article 19
(1) The Supervisory Board must obtain approval from the Financial Services Authority before carrying out supervision duties.
(2) Approval as referred to in paragraph (1) is provided by the Financial Services Authority after conducting a Fit and Proper Interview.
(3) The Fit and Proper Interview is conducted to assess that the Supervisory Board meets the requirements:
a. integrity; b. financial reputation; and
c. competence,
as established by the Financial Services Authority.
(4) The integrity requirements as referred to in paragraph (3) letter a include:
a. legal capacity to perform legal acts; b. having good ethics and morality, at least demonstrated by a attitude of complying with applicable laws and regulations, including never being sentenced for proven criminal acts within a certain period before nomination;
c. having a commitment to comply with applicable laws and regulations and support Financial Services Authority policies;
d. having a commitment to the healthy development of the Financial Services ADR; and e. not being included as parties prohibited from becoming principal parties as referred to in Financial Services Authority Regulation concerning Fit and Proper Assessment for Principal Parties of Financial Services Institutions. (5) The financial reputation requirements as referred to in paragraph (3) letter b are evidenced at least by:
a. not having non-performing loans and/or financing; and b. never being declared bankrupt and/or never having been a controller who is a shareholder or not, a member of the Board of Directors, or a member of the Board of Commissioners who was declared guilty causing a company to be declared bankrupt within the last 5 (five) years before nomination. (6) The competence requirements as referred to in paragraph (3) letter c must at least have knowledge and/or experience supporting the management of the Financial Services ADR. (7) Candidate Supervisory Board members who have obtained approval from the Financial Services Authority as referred to in paragraph (2) are appointed by the General Meeting of Members. (8) In the event there are indications of involvement and/or responsibility for integrity, financial reputation, and competence issues as referred to in paragraph (3), the Financial Services Authority has the authority to conduct a Fit and Proper Interview again with the Supervisory Board. (9) Further provisions regarding the Fit and Proper Interview for the Supervisory Board of the Financial Services ADR are established by the Financial Services Authority.

Eighth Section
Annual Work Plan and Budget

Article 20
The budget of the Financial Services ADR is sourced from:
a. member fees; b. grants;
c. unconditional donations or assistance; and
d. other revenues that do not conflict with the articles of association and/or applicable laws and regulations.

Article 21
(1) The Financial Services ADR formulates an annual work plan and budget.
(2) The annual work plan and budget as referred to in paragraph (1) includes:
a. executive summary; b. management policies and strategies;
c. projected financial reports along with assumptions used;
d. projected number of Disputes to be handled; e. funding plans; f. development plans for the Financial Services ADR; and g. other information.
(3) The annual work plan and budget must first be discussed in a Supervisory Board meeting to obtain approval.
(4) The annual work plan and budget that has obtained approval in a Supervisory Board meeting as referred to in paragraph (3) is submitted to the Financial Services Authority for approval. (5) In the event there are adjustments to the annual work plan and budget requested by the Financial Services Authority, the Financial Services ADR must submit them to the Financial Services Authority no later than 15 (fifteen) working days from the date of the letter from the Financial Services Authority. (6) The annual work plan and budget that has obtained approval from the Financial Services Authority is ratified in the General Meeting of Members. (7) The Financial Services ADR must submit the annual work plan and budget ratified by the General Meeting of Members to the Financial Services Authority no later than September 30 before the year the annual work plan and budget is implemented.

Article 22
(1) In the event that:
a. it is assessed to potentially endanger the tasks and functions of the Financial Services ADR; and/or b. it does not comply with applicable laws and regulations, the Financial Services Authority has the authority to cancel the annual work plan and budget that has been ratified as referred to in Article 21 paragraph (7). (2) In the event the Financial Services Authority cancels the annual work plan and budget as referred to in paragraph (1), the Financial Services ADR must hold a General Meeting of Members to ratify the annual work plan and budget again.

Article 23
(1) In the event there are external and internal factors that significantly affect the operations of the Financial Services ADR, the Financial Services ADR may make changes to the annual work plan and budget on its own initiative. (2) Changes to the annual work plan and budget as referred to in paragraph (1) must be submitted to the Financial Services Authority to obtain approval before holding the General Meeting of Members. (3) Changes to the annual work plan and budget as referred to in paragraph (1) are made at most 1 (one) time, and are made no later than June 30 of the current year. (4) In the event the Financial Services ADR makes changes or based on a review by the Financial Services Authority of the annual work plan and budget, the Financial Services ADR must hold a General Meeting of Members again to ratify the changes to the annual work plan and budget. (5) Changes to the annual work plan and budget that have been ratified must be submitted to the Financial Services Authority no later than 30 (thirty) working days before the implementation of the changes to the annual work plan and budget. (6) In the event the ratified annual work plan and budget is assessed to potentially hinder the implementation of the functions and tasks/operations of the Financial Services ADR, the Financial Services Authority has the authority to conduct a review of the annual work plan and budget of the Financial Services ADR. (7) Further provisions regarding the annual work plan and budget of the Financial Services ADR are established by the Financial Services Authority.

Article 24
(1) The Financial Services ADR formulates a realization report of the annual work plan and budget semi-annually.
(2) The report as referred to in paragraph (1) must be submitted to the Financial Services Authority no later than the 10th (tenth) day of the following month.

(3) The report referred to in paragraph (1) contains information:
a. achievement of the annual work plan and budget in the form of a comparison between the plan and realization; b. explanation regarding the causes and obstacles causing the difference between the plan and the realization of the annual work plan and budget; and
c. follow-up efforts that have been and will be carried out to improve the achievement of the realization of the annual work plan and budget.

Article 25
(1) In the event that current year receipts are greater than current year expenditures, the surplus funds are prohibited from being distributed to the Supervisors, Board of Directors, employees of the Financial Services Sector Alternative Dispute Resolution Institution, and/or other parties. (2) The surplus funds referred to in paragraph (1) are used for the optimization of the Financial Services Sector Alternative Dispute Resolution Institution.

Ninth Section
Annual Report

Article 26
(1) The Financial Services Sector Alternative Dispute Resolution Institution is required to publish an annual report no later than July 31 through a website officially managed by the Financial Services Sector Alternative Dispute Resolution Institution or other media. (2) The annual report referred to in paragraph (1) contains at least:
a. profile of the Financial Services Sector Alternative Dispute Resolution Institution; b. financial reports that have been audited by a public accountant registered with the Financial Services Authority;
c. membership and compliance with the payment of dues;
d. member compliance in implementing agreements and/or decisions; and e. handling of Disputes conducted by the Financial Services Sector Alternative Dispute Resolution Institution. (3) The Financial Services Sector Alternative Dispute Resolution Institution is required to submit the published annual report to the Financial Services Authority no later than 10 (ten) working days since the annual report was published as referred to in paragraph (1).

Tenth Section
Mediators and Arbitrators

Article 27
(1) The Financial Services Sector Alternative Dispute Resolution Institution is required to have a list of mediators and arbitrators who can conduct Dispute resolution at the Financial Services Sector Alternative Dispute Resolution Institution. (2) The Board of Directors conducts an assessment of mediators and arbitrators to be included in the list as referred to in paragraph (1). (3) The list of mediators and arbitrators as referred to in paragraph (1) is valid for a period of 3 (three) years. (4) The Board of Directors is required to conduct a re-assessment of mediators and arbitrators before the period as referred to in paragraph (3) expires.

CHAPTER IV
PRINCIPLES OF THE FINANCIAL SERVICES SECTOR ALTERNATIVE DISPUTE RESOLUTION INSTITUTION

First Section
Accessibility Principle

Article 28
(1) The Financial Services Sector Alternative Dispute Resolution Institution is required to have dispute resolution services and procedures that are easily accessible by Consumers. (2) The Financial Services Sector Alternative Dispute Resolution Institution is required to provide services covering the entire territory of Indonesia. (3) The Financial Services Sector Alternative Dispute Resolution Institution is required to develop communication strategies to increase Consumer understanding of the dispute resolution process conducted by the Financial Services Sector Alternative Dispute Resolution Institution. (4) The Financial Services Sector Alternative Dispute Resolution Institution is required to have a website containing information about the Financial Services Sector Alternative Dispute Resolution Institution.

Second Section
Independence Principle

Article 29
(1) The Financial Services Sector Alternative Dispute Resolution Institution is required to have a Supervisor who ensures that the Financial Services Sector Alternative Dispute Resolution Institution has met the requirements to perform its functions. (2) The Financial Services Sector Alternative Dispute Resolution Institution is prohibited from granting veto rights to its members. (3) The Financial Services Sector Alternative Dispute Resolution Institution is required to consult with relevant stakeholders in changing regulations before implementing them. (4) The Financial Services Sector Alternative Dispute Resolution Institution is required to have adequate resources to perform its functions.

Third Section
Fairness Principle

Article 30
(1) The Financial Services Sector Alternative Dispute Resolution Institution is required to have regulations in making agreements and/or decisions.
(2) The Financial Services Sector Alternative Dispute Resolution Institution is required to provide written reasons for:
a. rejection of dispute resolution requests; and/or b. dispute resolution decisions by arbitrators.

Fourth Section
Efficiency and Effectiveness Principle

Article 31
(1) The Financial Services Sector Alternative Dispute Resolution Institution is required to have dispute resolution regulations containing provisions regarding the time limit for dispute resolution. (2) The Financial Services Sector Alternative Dispute Resolution Institution is required to charge affordable fees to Consumers in dispute resolution. (3) The Financial Services Sector Alternative Dispute Resolution Institution is required to have dispute resolution regulations containing provisions that ensure that members of the Financial Services Sector Alternative Dispute Resolution Institution comply with and implement every agreement and decision of the Financial Services Sector Alternative Dispute Resolution Institution. (4) The Financial Services Sector Alternative Dispute Resolution Institution is required to supervise the implementation of agreements or decisions.

CHAPTER V
DISPUTE RESOLUTION BY THE FINANCIAL SERVICES SECTOR ALTERNATIVE DISPUTE RESOLUTION INSTITUTION

Article 32
(1) The Financial Services Sector Alternative Dispute Resolution Institution may handle Disputes with the following criteria:
a. Complaints have undergone resolution efforts by Financial Service Providers (PUJK) but were rejected by the Consumer or the Consumer has not yet received a response to the complaint as regulated in the Financial Services Authority Regulation regarding consumer complaint services in the financial services sector; b. The Dispute submitted is not a Dispute currently in process or previously decided by a court, arbitration, or other alternative dispute resolution institution; and
c. The Dispute is civil in nature.
(2) In addition to Disputes as referred to in paragraph (1), the Financial Services Sector Alternative Dispute Resolution Institution may handle other disputes that receive approval from the Financial Services Authority. (3) Handling disputes through the Financial Services Sector Alternative Dispute Resolution Institution as referred to in paragraph (1) and paragraph (2) is confidential.

Article 33
(1) Dispute resolution through the Financial Services Sector Alternative Dispute Resolution Institution may be conducted through:
a. direct face-to-face meetings in front of a mediator or arbitrator; b. electronic media; and/or
c. document examination.
(2) Dispute resolution through electronic media as referred to in paragraph (1) letter b may be conducted through long-distance communication media that allow all parties to mutually:
a. hear; or b. see and hear, directly and participate in meetings.
(3) The Financial Services Sector Alternative Dispute Resolution Institution is required to account for all information and data related to dispute resolution.

CHAPTER VI
PROTECTION AND PROVISION OF INFORMATION AND DOCUMENTS

Article 34
The Financial Services Sector Alternative Dispute Resolution Institution is required to apply information and/or dispute service document security controls on every electronic system used by the Financial Services Sector Alternative Dispute Resolution Institution.

Article 35
(1) The Financial Services Authority may request information and/or documents from the Financial Services Sector Alternative Dispute Resolution Institution via letter and/or electronic mail. (2) The request for information and/or documents as referred to in paragraph (1) is carried out for the purpose of:
a. granting approval by the Financial Services Authority; or b. the Financial Services Authority's need for other information and/or documents.
(3) The Financial Services Sector Alternative Dispute Resolution Institution is required to provide information and/or documents as referred to in paragraph (2) to the Financial Services Authority no later than 10 (ten) working days since the date of receipt of the request for information and/or documents via letter and/or electronic mail.

CHAPTER VII
REPORTING OF THE FINANCIAL SERVICES SECTOR ALTERNATIVE DISPUTE RESOLUTION INSTITUTION

Article 36
(1) The Financial Services Sector Alternative Dispute Resolution Institution is required to submit periodic reports every 3 (three) months at the end of March, June, September, and December to the Financial Services Authority, no later than the 10th of the following month. (2) The report as referred to in paragraph (1) contains information:
a. for each service at least:

1. number of dispute resolution requests;
2. demographics of Consumers submitting dispute resolution requests;
3. number of dispute resolution requests rejected due to not meeting requirements including reasons for rejection;
4. number of Disputes still in the process of resolution;
5. average time required to resolve each Dispute;
6. type of service and/or product that is the subject of the Dispute; and
7. number of Disputes that have been decided and results of monitoring the implementation of the agreements and decisions thereof;
   b. list of the top 5 (five) Disputes received by the Financial Services Sector Alternative Dispute Resolution Institution;
   c. list of Financial Service Providers (PUJK) that are not yet members of the Financial Services Sector Alternative Dispute Resolution Institution; and
   d. list of members who have not paid membership dues to the Financial Services Sector Alternative Dispute Resolution Institution.
   (3) Submission of reports as referred to in paragraph (1) is carried out through the electronic reporting system provided by the Financial Services Authority.
   (4) In the event that submission of reports through the electronic reporting system as referred to in paragraph (3) experiences disruption, submission is carried out via letter to the working unit that performs education and consumer protection functions. (5) Further provisions regarding reports of the Financial Services Sector Alternative Dispute Resolution Institution are determined by the Financial Services Authority.

Article 37
The Financial Services Sector Alternative Dispute Resolution Institution is required to submit in writing the names of Financial Service Providers (PUJK) and Consumers who do not implement agreements or decisions of the Financial Services Sector Alternative Dispute Resolution Institution to the Financial Services Authority no later than 10 (ten) working days since the deadline for implementation of the agreement or decision.

Article 38
In the event that the final deadline for reporting submission as referred to in Article 15 paragraph (2), Article 21 paragraph (5) and paragraph (7), Article 23 paragraph (5), Article 24 paragraph (2), Article 26 Paragraph (1) and Paragraph (3), Article 35 paragraph (3), Article 36 paragraph (1), and Article 37 falls on a Saturday, Sunday, or public holiday, the reporting obligation is submitted no later than 1 (one) working day following it.

CHAPTER VIII
ADMINISTRATIVE SANCTIONS

Article 39
(1) The Financial Services Authority is authorized to impose administrative sanctions on the Financial Services Sector Alternative Dispute Resolution Institution and/or Financial Service Providers (PUJK) who violate the provisions of this Financial Services Authority Regulation in the form of:
a. written warning; b. replacement of Board of Directors and/or Supervisors;
c. fines, namely the obligation to pay a certain amount of money;
d. restriction of business activities; and/or e. suspension of business activities.
(2) Administrative sanctions as referred to in paragraph (1) letter c, letter d, and letter e may be imposed with or without being preceded by the imposition of administrative sanctions in the form of a written warning as referred to in paragraph (1) letter a.

Article 40
The Financial Services Sector Alternative Dispute Resolution Institution that violates the provisions as referred to in Article 15 paragraph (2), Article 21 paragraph (5) and paragraph (7), Article 23 paragraph (5), Article 24 paragraph (2), Article 26 paragraph (1) and paragraph (3), Article 35 paragraph (3), Article 36 paragraph (1), and Article 37 is subject to administrative sanctions in the form of a fine, namely the obligation to pay an amount of IDR 50,000.00 (fifty thousand rupiah) per working day of delay and at most IDR 5,000,000.00 (five million rupiah).

Article 41
(1) The Financial Services Sector Alternative Dispute Resolution Institution that does not meet the provisions as referred to in Article 9 paragraph (3), Article 10 paragraph (1), Article 15 paragraph (4), Article 16 paragraph (4), Article 17 paragraph (1), Article 19 paragraph (1), Article 23 paragraph (2), Article 27 paragraph (1) and paragraph (4), Article 28, Article 29, Article 30, Article 31, Article 33 paragraph (3) and Article 34, is subject to administrative sanctions in the form of:
a. written warning; and/or b. replacement of Board of Directors and/or Supervisors.
(2) The imposition of sanctions as referred to in paragraph (1) letter b is preceded by an interview regarding the competence and fitness of the Supervisors and/or Board of Directors by the Financial Services Authority.

Article 42
The Financial Services Authority issues a written order to the Financial Services Sector Alternative Dispute Resolution Institution that does not meet the provisions as referred to in Article 25 paragraph (1).

Article 43
(1) Financial Service Providers (PUJK) who violate the provisions as referred to in Article 11 are subject to administrative sanctions in the form of:
a. written warning; b. fines, namely the obligation to pay a certain amount of money;
c. restriction of business activities; and/or
d. suspension of business activities.
(2) Sanctions as referred to in paragraph (1) letter b to letter d may be imposed with or without being preceded by the imposition of written warning sanctions as referred to in paragraph (1) letter a.

Article 44
The Financial Services Authority may announce the imposition of sanctions as referred to in Article 40, Article 41, and Article 43, and written orders as referred to in Article 42 to the public.

CHAPTER IX
OTHER PROVISIONS

Article 45
(1) For the first time, the Board of Directors and Supervisors of the Financial Services Sector Alternative Dispute Resolution Institution are selected by associations in the financial services sector and Self Regulatory Organizations (SRO) through a selection committee formed by the Financial Services Authority. (2) The Financial Services Authority grants approval for the Board of Directors and Supervisors of the Financial Services Sector Alternative Dispute Resolution Institution based on proposals from associations in the financial services sector and Self Regulatory Organizations (SRO).

Article 46
(1) For the first time, the Board of Directors submits:
a. regulations as referred to in Article 8 paragraph (2) letter b; b. articles of association as referred to in Article 9; and
c. annual work plan and budget as referred to in Article 21,
concurrently with the request for written approval as referred to in Article 8 paragraph (1) to the Financial Services Authority.
(2) Documents as referred to in paragraph (1) letter a are submitted without consulting relevant stakeholders.
(3) Documents as referred to in paragraph (1) letter b and letter c are submitted without being preceded by a general meeting of members.

CHAPTER X
TRANSITIONAL PROVISIONS

Article 47
(1) All Financial Service Providers (PUJK) that have become members of Alternative Dispute Resolution Institutions in the financial services sector registered as regulated in Financial Services Authority Regulation Number 1/POJK.07/2014 concerning Alternative Dispute Resolution Institutions in the Financial Services Sector (State Gazette of the Republic of Indonesia Year 2014 Number 12, Supplement to the State Gazette of the Republic of Indonesia Number 5499) are deemed to automatically become members of the Financial Services Sector Alternative Dispute Resolution Institution as referred to in Article 6 as of January 1, 2021. (2) Agreements between Financial Service Providers (PUJK) and Consumers containing the selection of dispute resolution forums through Alternative Dispute Resolution Institutions in the financial services sector registered as regulated in Financial Services Authority Regulation Number 1/POJK.07/2014 concerning Alternative Dispute Resolution Institutions in the Financial Services Sector (State Gazette of the Republic of Indonesia Year 2014 Number 12, Supplement to the State Gazette of the Republic of Indonesia Number 5499) that existed prior to the implementation of this Financial Services Authority Regulation are transferred to the Financial Services Sector Alternative Dispute Resolution Institution as referred to in Article 6.

Article 48
(1) Alternative Dispute Resolution Institutions in the financial services sector registered as regulated in Financial Services Authority Regulation Number 1/POJK.07/2014 concerning Alternative Dispute Resolution Institutions in the Financial Services Sector (State Gazette of the Republic of Indonesia Year 2014 Number 12, Supplement to the State Gazette of the Republic of Indonesia Number 5499) may continue to receive dispute resolution requests from Consumers until December 31, 2020. (2) Dispute resolution requests received as referred to in paragraph (1) must be resolved by the Alternative Dispute Resolution Institution in the financial services sector registered as regulated in Financial Services Authority Regulation Number 1/POJK.07/2014 concerning Alternative Dispute Resolution Institutions in the Financial Services Sector (State Gazette of the Republic of Indonesia Year 2014 Number 12, Supplement to the State Gazette of the Republic of Indonesia Number 5499) in accordance with the provisions of applicable laws and regulations.

CHAPTER XI
CLOSING PROVISIONS

Article 49
The obligation to provide information systems as referred to in Article 34 begins to apply 1 (one) year after this Financial Services Authority Regulation is promulgated.

Article 50
(1) The Financial Services Sector Alternative Dispute Resolution Institution as referred to in Article 6 operates as of January 1, 2021.
(2) At the time this Financial Services Authority Regulation begins to apply, all implementing regulations of Financial Services Authority Regulation Number 1/POJK.07/2014 concerning Alternative Dispute Resolution Institutions in the Financial Services Sector (State Gazette of the Republic of Indonesia Year 2014 Number 12, Supplement to the State Gazette of the Republic of Indonesia Number 5499) are declared to remain valid insofar as they do not conflict with this Financial Services Authority Regulation. (3) At the time this Financial Services Authority Regulation begins to apply, Financial Services Authority Regulation Number 1/POJK.07/2014 concerning Alternative Dispute Resolution Institutions in the Financial Services Sector (State Gazette of the Republic of Indonesia Year 2014 Number 12, Supplement to the State Gazette of the Republic of Indonesia Number 5499) is repealed and declared invalid.

Article 51
This Financial Services Authority Regulation begins to apply on the date of its promulgation.

This copy is in accordance with the original
Director of Law 1
Legal Department signed
Mufli Asmawidjaja

To ensure everyone knows, orders the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.

Established in Jakarta on December 14, 2020
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Promulgated in Jakarta on December 16, 2020
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2020 NUMBER 290

EXPLANATION
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 61 /POJK.07/2020
CONCERNING
FINANCIAL SERVICES SECTOR ALTERNATIVE DISPUTE RESOLUTION INSTITUTION

I. GENERAL
Resolution of complaints by Financial Service Providers (PUJK) does not always result in an agreement, thereby causing Disputes between Consumers and PUJK. In order to provide Consumer protection, a dispute resolution mechanism outside of PUJK is needed, namely through the court or outside the court. Dispute resolution outside the court can be conducted by the Financial Services Sector Alternative Dispute Resolution Institution (LAPS Sektor Jasa Keuangan). The resolution process at the Financial Services Sector Alternative Dispute Resolution Institution is confidential and prioritizes a win-win solution, thereby being more comfortable for the parties involved and able to maintain Consumer trust in the financial services sector. In addition, dispute resolution through the Financial Services Sector Alternative Dispute Resolution Institution is faster, cheaper, and produces objective, relevant, and fair decisions or agreements. Provisions regarding the Financial Services Sector Alternative Dispute Resolution Institution were previously regulated in Financial Services Authority Regulation Number 1/POJK.07/2014 concerning Alternative Dispute Resolution Institutions in the Financial Services Sector. The formation of this Financial Services Authority Regulation aims to meet the needs of Consumers in the financial services sector for dispute resolution. However, in its development, Financial Services Authority Regulation Number 1/POJK.07/2014 concerning Alternative Dispute Resolution Institutions in the Financial Services Sector still requires refinement to realize a more effective and efficient Financial Services Sector Alternative Dispute Resolution Institution, and to respond to technological developments, financial services products and services that are increasingly complex and cross-sectoral. Currently, there are 6 (six) Financial Services Sector Alternative Dispute Resolution Institutions registered with the Financial Services Authority, where each Financial Services Sector Alternative Dispute Resolution Institution is specialized in handling disputes in specific industries. In order to increase the effectiveness and efficiency of the Financial Services Sector Alternative Dispute Resolution Institution, it is necessary to form a Financial Services Sector Alternative Dispute Resolution Institution that handles all financial services sector disputes, both conventional and Sharia. The formation of this Institution is expected to produce the same service quality standards for all Consumers and facilitate Consumers in resolving Disputes, including Disputes arising from the utilization of financial products and services involving more than 1 (one) financial services sector. In addition, the formation of the Financial Services Sector Alternative Dispute Resolution Institution is expected to minimize the operational cost burden of the Financial Services Sector Alternative Dispute Resolution Institution by utilizing technological developments, while still
maintaining service quality. In order to realize a Financial Services Sector Alternative Dispute Resolution Institution that is able to protect and maintain the trust of stakeholders, and ensure compliance with legal provisions, the Financial Services Sector Alternative Dispute Resolution Institution needs an institutional structure and governance that is able to support and develop the functions of the Financial Services Sector Alternative Dispute Resolution Institution. In this regard, the Financial Services Sector Alternative Dispute Resolution Institution must have regulations regarding approval, membership, and general meetings of members, apply good governance principles, and be managed by parties who consistently meet competence requirements. In addition, in providing services, the Financial Services Sector Alternative Dispute Resolution Institution must also meet the principles of accessibility, independence, fairness, efficiency, and effectiveness. In connection with this matter, the formation of this Financial Services Authority Regulation is carried out.

II. ARTICLE BY ARTICLE
Article 1
Sufficiently clear.

Article 2
Letter a
Sufficiently clear.
Letter b
The term "Consumer" includes, among others, bank customers in Banking, investors in the Capital Market, policyholders in Insurance, and participants in Pension Funds, based on laws and regulations in the financial services sector.

Article 3
Sufficiently clear.

Article 4
Sufficiently clear.

Article 5
Sufficiently clear.

Article 6
Sufficiently clear.

Article 7
Sufficiently clear.

Article 8
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Letter a
Sufficiently clear.
Letter b
Regulations may take the form of, among others:

• Regulations regarding Mediators and Arbitrators.
• Regulations regarding the Code of Ethics for Mediators and Arbitrators.
• Regulations regarding Mediation (including procedures and time limits).
• Regulations regarding Arbitration (including procedures and time limits).
• Regulations regarding Dispute Resolution Costs (Mediation and Arbitration).
• Regulations related to membership of the Financial Services Sector Alternative Dispute Resolution Institution.
  Number 1
  Sufficiently clear.
  Number 2
  Sufficiently clear.
  Number 3
  Sufficiently clear.
  Number 4
  Sufficiently clear.
  Number 5
  Sufficiently clear.
  Number 6
  Sufficiently clear.
  Number 7
  Regulations with material in the form of sanctions for members who violate regulations established by the Financial Services Sector Alternative Dispute Resolution Institution include, among others, sanctions resulting from violations of membership dues payment agreements or violation actions taken by members due to not complying with and implementing agreements and/or decisions of the Financial Services Sector Alternative Dispute Resolution Institution. Letter c Sufficiently clear. Paragraph (3) Letter a

1. The term "mediation" refers to a method of dispute resolution through a third party to help disputing parties reach an agreement.
2. The term "arbitration" refers to a method of resolving a civil dispute outside of court based on an arbitration agreement made in writing by the disputing parties.
   Letter b
   The term "adequate resources" refers to the minimum resources owned that are sufficient to operate the Financial Services Sector Alternative Dispute Resolution Institution. Letter c The term "association in the financial services sector" refers to an institution representing all Financial Service Providers (PUJK) in each financial services sector. The term "Self Regulatory Organization" includes, among others, Stock Exchanges, Clearing and Guarantee Institutions, and Custody and Settlement Institutions. The process of forming the Financial Services Sector Alternative Dispute Resolution Institution is carried out by associations and/or Self Regulatory Organizations (SRO) to ensure it is implemented effectively and efficiently. Letter d Sufficiently clear. Paragraph (4) Sufficiently clear.

Article 9
Paragraph (1)
Sufficiently clear.
Paragraph (2)
Sufficiently clear.
Paragraph (3)
Sufficiently clear.

Paragraph (4)
Quite clear.
Paragraph (5)
What is meant by "following up" includes, among other things, registration with the government device specializing in law to obtain approval.

Article 10
Paragraph (1)
Quite clear.
Paragraph (2)
The refinement of the LAPS Financial Services Sector regulation is partly due to harmonization with statutory regulations and for adjusting the implementation of the functions and duties of the LAPS Financial Services Sector. Paragraph (3) Quite clear. Paragraph (4) Quite clear.

Article 11
Letter a
Quite clear.
Letter b
Membership fees paid by Financial Services Business Actors (PUJK) to the LAPS Financial Services Sector are fees established in the general meeting of members and constitute the obligation of PUJK as members of the LAPS Financial Services Sector association. The amount of membership fees considers, among other things, the size of the PUJK business scale and other variables such as PUJK assets. Letter c What is meant by "agreement and decision" is the agreement reached and the decision resulting from the Dispute Resolution process. Examples of LAPS Financial Services Sector decisions include arbitration decisions that have been submitted and registered with the District Court Clerk and have passed the time limit for requesting the annulment of the arbitration decision. Letter d What is meant by "other media officially managed by PUJK" is media used by PUJK for communication with Consumers, including via email and bulletin boards provided at branch offices.

Article 12
Quite clear.

Article 13
Quite clear.

Article 14
Paragraph (1)
Quite clear.
Paragraph (2)
Quite clear.
Paragraph (3)
Quite clear.
Paragraph (4)
The implementation of the general meeting of members using electronic media is carried out by considering the effectiveness and efficiency of the activity concerned.

Article 15
Paragraph (1)
Quite clear.
Paragraph (2)
Quite clear.
Paragraph (3)
Letter a
Examples of "potentially endangering the interests of the LAPS Financial Services Sector" include the establishment of a budget that is not in accordance with the tasks and functions of the LAPS Financial Services Sector. Letter b Quite clear. Paragraph (4) Quite clear.

Article 16
Paragraph (1)
What is meant by "management" is the task of managing the LAPS Financial Services Sector as stated in the Articles of Association of the LAPS Financial Services Sector. Paragraph (2) Quite clear. Paragraph (3) Quite clear. Paragraph (4) The determination of dual office holding is done by the LAPS Financial Services Sector. Paragraph (5) Quite clear.

Article 17
Paragraph (1)
Quite clear.
Paragraph (2)
Quite clear.
Paragraph (3)
Quite clear.
Paragraph (4)
Letter a
Quite clear.
Letter b
What is meant by "criminal offense" is:

1. criminal offenses in the financial services sector whose punishment has been fully served within the last 20 (twenty) years before nomination;
2. criminal offenses, namely criminal offenses stipulated in the Criminal Code (KUHP) and/or similar to the KUHP abroad with a prison sentence threat of 1 (one) year or more whose punishment has been fully served within the last 10 (ten) years before nomination; and/or
3. other criminal offenses with a prison sentence threat of 1 (one) year or more, including corruption, money laundering, narcotics/psychotropics, smuggling, customs, excise, human trafficking, illegal arms trafficking, terrorism, counterfeiting money, in the field of taxation, in the field of forestry, in the field of the environment, in the field of marine and fisheries, whose punishment has been fully served within the last 20 (twenty) years before nomination.
   Letter c
   Quite clear.
   Letter d
   Quite clear.
   Letter e
   Quite clear.
   Paragraph (5)
   Quite clear.
   Paragraph (6)
   Quite clear.
   Paragraph (7)
   Quite clear.
   Paragraph (8)
   Quite clear.
   Paragraph (9)
   Quite clear.

Article 18
Paragraph (1)
What is meant by "supervision" is the task of supervising the LAPS Financial Services Sector as stated in the Articles of Association of the LAPS Financial Services Sector. Paragraph (2) Quite clear. Paragraph (3) Quite clear. Paragraph (4) Quite clear.

Article 19
Quite clear.

Article 20
Letter a
Quite clear.
Letter b
Quite clear.
Letter c
Quite clear.
Letter d
Examples of other receipts that do not contradict the Articles of Association and/or statutory regulations include operational funding assistance provided by the Financial Services Authority (OJK).

Article 21
Paragraph (1)
Quite clear.
Paragraph (2)
Letter a
Quite clear.
Letter b
Quite clear.
Letter c
Quite clear.
Letter d
Quite clear.
Letter e
Quite clear.
Letter f
What is meant by "development of the LAPS Financial Services Sector" includes, among other things, organizational and human resource development, development and/or change of office networks, and development of electronic systems that can connect with the integrated consumer service system provided by the Financial Services Authority (OJK) as regulated in the Financial Services Authority Regulation regarding the Provision of Consumer and Community Services in the Financial Services Sector by the Financial Services Authority. Letter g What is meant by "other information" includes information regarding socialization, communication activities, mediator/arbitrator education, and cooperation with international institutions. Paragraph (3) Quite clear. Paragraph (4) Quite clear. Paragraph (5) Quite clear. Paragraph (6) Quite clear. Paragraph (7) Quite clear.

Article 22
Paragraph (1)
Letter a
What is meant by "endangering" includes, among other things, the establishment of a budget that is not in accordance with the tasks and functions of the LAPS Financial Services Sector. Letter b Quite clear. Paragraph (2) Quite clear.

Article 23
Paragraph (1)
Examples of external factors include economic crises resulting in targets not being achieved. Examples of internal factors include the realization of revenue targets not reaching the target. Paragraph (2) Quite clear. Paragraph (3) Quite clear. Paragraph (4) Quite clear. Paragraph (5) Quite clear. Paragraph (6) Changes to the annual work plan and budget of the LAPS can be made more than once (1) based on review by OJK. What is meant by "potentially hindering the implementation of functions and duties/operations of the LAPS Financial Services Sector" includes, among other things, the establishment of a budget that is not in accordance with the tasks and functions of the LAPS Financial Services Sector. Paragraph (7) Quite clear.

Article 24
Quite clear.

Article 25
Paragraph (1)
Quite clear.
Paragraph (2)
Included in "optimization" are, among other things, operational costs for the following year, organizational and human resource development, development and/or change of office networks, and development of electronic systems that can connect with the integrated consumer service system provided by the Financial Services Authority (OJK).

Article 26
Paragraph (1)
What is meant by "other media" includes, among other things, the Financial Services Authority (OJK) portal.
Paragraph (2)
Quite clear.
Paragraph (3)
Quite clear.

Article 27
Quite clear.

Article 28
Paragraph (1)
What is meant by "easily accessible" includes the LAPS Financial Services Sector providing facilities that facilitate Consumers to know the existence, how to contact, and the types of Dispute Resolution services owned by the LAPS Financial Services Sector, including the provision of information systems. Paragraph (2) The LAPS Financial Services Sector can utilize information technology, including via teleconference and/or video conference tools, in providing services covering the entire territory of Indonesia. Paragraph (3) Examples of developing communication strategies to increase Consumer understanding of the Dispute Resolution process include through the LAPS Financial Services Sector website or in brochures provided by the LAPS Financial Services Sector. Paragraph (4) Quite clear.

Article 29
Paragraph (1)
Quite clear.
Paragraph (2)
Examples of "veto rights" include the right to replace Board Members or change the regulations of the LAPS Financial Services Sector.
Paragraph (3)
Examples of "relevant stakeholders" include associations or Consumer associations or institutions operating in the field of Consumer protection and associations or PUJK associations according to their respective sectors. Paragraph (4) What is meant by "adequate resources" is the minimum resources owned that are sufficient to run the operations of the LAPS Financial Services Sector. Included in "resources" are human resources, facilities, and infrastructure.

Article 30
Paragraph (1)
Regulations in making agreements and/or decisions on material content include:
a. the mediator truly acts as a facilitator in bringing together the interests of the disputing parties to obtain an agreement for resolution; b. the arbiter is prohibited from making decisions based on information unknown to the parties; and
c. the arbiter provides written reasons in every decision.
Paragraph (2)
Letter a
Written reasons for rejecting a dispute resolution request include:

1. Reasons for rejection related to the substance of the Dispute submitted, such as the Dispute has never been submitted to the PUJK or the Dispute is not related to the financial services sector.
2. Reasons for rejection related to administration, such as incomplete Dispute documents.
   Letter b
   Quite clear.

Article 31
Paragraph (1)
What is meant by "time limit" is the period required in Dispute Resolution. The time limit can be measured by comparing the time limit for handling and resolving Disputes at the LAPS Financial Services Sector with the time limit for resolving disputes at other institutions, bodies, agencies, or other bodies that have dispute resolution functions. Paragraph (2) Affordable costs can be measured by comparing the costs of resolving Disputes at the LAPS Financial Services Sector with the costs of resolving disputes at other institutions, bodies, agencies, or other bodies that have dispute resolution functions. Paragraph (3) Quite clear. Paragraph (4) Quite clear.

Article 32
Paragraph (1)
Letter a
What is meant by "complaint" is a complaint indicating a dispute as referred to in the Financial Services Authority Regulation regarding the provision of consumer and community services in the financial services sector by the Financial Services Authority. What is meant by "rejected" is the Consumer rejecting the response to the complaint or the response to the objection submitted by the PUJK. What is meant by "Consumer has not received a complaint response" is the PUJK has not submitted a complaint response after the complaint handling time limit as regulated in the Financial Services Authority Regulation regarding consumer complaint services in the financial services sector has passed. Letter b Quite clear. Letter c Quite clear. Paragraph (2) Examples of other disputes approved by the Financial Services Authority include disputes submitted by PUJK. Paragraph (3) What is meant by "confidential dispute handling" is dispute resolution that is conducted in a closed manner and its decisions are not announced.

Article 33
Paragraph (1)
Quite clear.
Paragraph (2)
Quite clear.
Paragraph (3)
The scope of accounting includes, among other things, administrative recording and information control.

Article 34
Control of information security and/or dispute service documents on each electronic system used by the LAPS Financial Services Sector includes:
a. confidentiality; b. integrity;
c. availability;
d. authenticity; e. non-repudiation; f. authorization control in systems, databases, and applications; g. separation of duties and responsibilities; and h. audit trail maintenance. What is meant by "electronic system" is a series of electronic devices and procedures that function to prepare, collect, process, analyze, store, display, announce, send, and/or distribute electronic information. Examples of "electronic systems" used by the LAPS Financial Services Sector include electronic systems for dispute resolution and general meetings of members.

Article 35
Paragraph (1)
What is meant by "information" is statements, declarations submitted in the form of data, facts, or explanations presented in various packaging and formats. Requests for information and/or documents via mail can be done by attaching the letter to an electronic mail (email). Paragraph (2) a. examples of "information and/or documents related to the granting of approval by the Financial Services Authority" include additional information and/or documents needed when the LAPS Financial Services Sector submits approval for draft regulations or Articles of Association to the Financial Services Authority. b. examples of "the Financial Services Authority's needs for other information and/or documents" can include documents or information related to Disputes in the financial services sector. Paragraph (3) Quite clear.

Article 36
Paragraph (1)
Quite clear.
Paragraph (2)
Letter a
Quite clear.
Letter b
The list of the top 5 (five) Disputes received by the LAPS Financial Services Sector based on dispute frequency, for example, cases of investment values in unit links that are not in accordance. Letter c Quite clear. Letter d Quite clear. Paragraph (3) Quite clear. Paragraph (4) Quite clear. Paragraph (5) Quite clear.

Article 37
What is meant by "agreement or decision" is the agreement reached and the decision resulting from the Dispute Resolution process.

Article 38
What is meant by "holiday" is national holidays established by the central government and/or local holidays established by the local government.

Article 39
Quite clear.

Article 40
Quite clear.

Article 41
Quite clear.

Article 42
Quite clear.

Article 43
Quite clear.

Article 44
Quite clear.

Article 45
Quite clear.

Article 46
Quite clear.

Article 47
Quite clear.

Article 48
Quite clear.

Article 49
Quite clear.

Article 50
Quite clear.

Article 51
Quite clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6599