No. 23/298/DKom
Bank Indonesia is strengthening consumer protection by monitoring the conduct of service providers in the payment system, money market and foreign exchange market, cash services as well as other parties under the regulation and supervision of Bank Indonesia. Supervision and oversight are performed directly and/or indirectly concerning the behaviour of service providers based on a market conduct approach focusing on the design, compilation and presentation of information, product and/or service offerings and agreements as well as complaint handling and resolution. In practice, supervising the conduct of service providers will complement existing prudential oversight at Bank Indonesia to simultaneously create and maintain financial system stability by safeguarding consumer protection. Previously, BI oversight focused on the health of service providers yet has been expanded to include consumer protection. That was the key takeaway of the virtual socialisation activities concerning consumer protection procedures and regulations at Bank Indonesia as well as the kick-off for service provider conduct oversight to strengthen consumer protection at Bank Indonesia today (12/11).
“By monitoring their conduct, service providers are forced to prioritise consumer interests. Therefore, a level playing field can be created between service providers and consumers, which will strengthen consumer confidence when transacting and interacting with service providers, while supporting solid and sustainable economic growth,” said BI Deputy Governor, Doni P. Joewono, in his speech. Strong and unambiguous regulations concerning consumer protection provide legal assurance as well as greater transaction security and convenience for consumers in the long run.
Strengthening consumer protection by monitoring market conduct will ensure implementation of the seven Consumer Protection Principles by service providers: (i) equity and fair treatment, (ii) disclosure and transparency, (iii) education and literacy, (iv) accountable business conduct, (v) protection of consumer assets against misuse, (vi) protection of consumer data and/or information, and (vii) effective complaint handling and resolution. The Consumer Protection Principles are applied based on the provider’s products and/or services. Furthermore, the seven Consumer Protection Principles are grouped into four supervision areas, namely transparency, integrity, complaint resolution and education in accordance with prevailing Bank Indonesia Regulations (PBI) and Board of Governors Regulations (PADG).
In terms of consumer protection, the critical role of Bank Indonesia as regulator aims to create and maintain a level playing field between service providers and consumers, thus ensuring equity and equality between service providers and consumers. Bank Indonesia has significantly strengthened consumer protection policy, as contained within the Bank Indonesia Regulation (PBI) concerning Consumer Protection. Bank Indonesia has also issued implementation guidelines to support the PBI on Consumer Protection, as contained within an External PADG concerning Implementation Procedures for Bank Indonesia Consumer Protection. The PADG regulates in greater detail the implementation of Consumer Protection Principles as well as the procedures for complaint handling, reporting, market conduct monitoring and the imposition of administrative sanctions.
Jakarta, 15th November 2021
Head of Communication Department
Erwin Haryono
Executive Director
Information about Bank Indonesia
Tel. 021-131, Email: bicara@bi.go.id
