Consumer Complaints Service and Resolution on Provider of Financial Service

The Financial Services Authority has issued Circular Letter No. 2/SEOJK.07/2014 of 2014 on Service and Resolution of Consumer Complaints on Provider of Financial Service (“Circular Letter”) as an implementing regulation of Financial Services Regulation No. 1/POJK.07/2013 of 2013 on Consumer Protection in the Financial Services Sector (“Regulation”). The Circular Letter will be in force on 6 August 2014.

Pursuant to Article 32 (1) of the Regulation, Financial Service Provider must has and perform a mechanism of service and resolution of consumer complaints. Categorized as a Financial Service Provider are Commercial Bank, Rural Bank, Securities Company, Investment Advisor, Custodial Bank, Pension Fund, Insurance Company, Reinsurance Company, Financing Institution, Pawn Shop, and Underwriting Company, which conduct its business conventionally or in accordance with Sharia Principles (Section I.2, Circular Letter).

A. Consumer Complaints Service and Resolution Mechanism

Services and resolution of consumer complaint is free and Financial Service Provider may not collect any fee. Practice of Consumer complaints acceptance may be conducted by many means such as face to face meeting, email and mail, however not including complaint that is conducted via mass media coverage (Section II. 7 (b), 9, Circular Letter).After receiving a Consumer complaint, Financial Service Provider must immediately follows up and resolves it within 20 days since the complaint was received. This 20 days period may be extended for a further 20 days in the following events (Section II. 3, 4, 5, Circular Letter):

  1. The office of Financial Service Provider that received the complaint is not the same as the office of Financial Service Provider where the problem that is causing a complaint occurs, and there are communication difficulties between the two offices;
  2. Financial transaction that is reported by the Consumer require further special studies;
  3. There are other things that are beyond the Financial Service Provider control, such as third party involvement outside Financial Service Provider in Consumer’s financial transaction.If there is a period extension in the complaint resolution as mention above, the Financial Service Provider must delivers a written notification to the Consumer who submits the complaint within 20 days since it was received (Section II. 6, Circular Letter).

In the process, Financial Service Provider must uphold the confidentiality of information regarding Consumer who complains, against anyone except (Section II. 7 (g), Circular Letter):

  1. The Financial Services Authority;
  2. In the framework of complaint resolution;c. Mandatory in accordance with Laws and Regulations; and/ord. With the Consumer consent.Financial Service Provider is obligated to provide information regarding the status of Consumer complaints through various communication facilities provided by the Financial Service Provider such as website, mail, email or phone (Section II. 11, Circular Letter).

Financial Service Provider and Consumer can monitor the development of status of complaint handling submitted by Consumer to Financial Services Authority through Financial Service Integrated Consumer Service (Section II. 12, Circular Letter).Complaints Resolution in a Form of Apology Statement or Compensation Offer Financial Service Provider may resolve complaints by declaring Apology Statement or offering compensation to the Consumer. Considering “Apology Statement” is an act of both parties between the Financial Service Provider and Consumer, procedures on delivering “Apology Statement” are made based on consensus (Section III. 1, Circular Letter).

Losses caused by financial aspects may be given compensation if those losses meet the requirements as follows (Section III. 2, Circular Letter):

  1. There is a complaint containing compensation claims related with financial aspects;
  2. Submitted Consumer complaint is proper, after Financial Service Provider perform studies;
  3. There is a discrepancy between product agreement and/or service with received product and/or service;
  4. There is a financial loss;
  5. The Consumer has performed his obligation.

B. Mechanism of compensation submission is as follows (Section III. 3, Circular Letter):

  1. Submission of compensation request along with chronology of events explaining the discrepancy of product and/or usage of service along with proofs;
  2. Request at the latest 30 days since it is discovered that the product and/or service is not as it was agreed;
  3. Request is submitted with application letter and can be represented by attaching a power of attorney;
  4. Compensation is only given for direct losses affecting the Consumer and at the most as the worth of amount of lossessuffered by the Consumer.

Resolution through Alternative Dispute Resolution Institution

If the complaint cannot be amicably resolved in the Consumer complain service and resolution process, Consumer and Financial Service Provider may resolve their dispute inside or outside a court. Dispute resolution outside the court is conducted through an Alternative Dispute Resolution Institution (Section IV. 2, 3, Circular Letter). More on this please see “Alternative Dispute Resolution in the Financial Services Sector.”



SMART Legal Consulting has extensive experience in helping Consumer Complaints Service and Resolution on Provider of Financial Service. If you need immediate assistance, please contact SMART Help Desk at:


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