Press Release: OJK to Monitor Implementation of Consumer Protection in Financial Services Sector

Jul 7 2015

PR-ojk-monitor-implementation-of-CPFSS.pdf

Jakarta, July 7, 2015, Financial Services Authority: Financial Services Authority (OJK) will monitor over implementation of consumer protection program carried out by financial services institutions (PUJK) in order to review their compliance in implementing OJK Regulation Number 1/POJK.07/2013 on consumer protection in financial services sector and all its implementing regulations.

In effort to convey the plan of monitoring over implementation of consumer protection principles to financial services institutions, OJK held an event themed Socialization about Monitoring and Analysis of Consumer Protection in Financial Services Sector on Tuesday (July 7, 2015) at Merdeka building, Jakarta.

The socialization was aimed at giving explanation to financial services institutions that OJK will monitor and analyze the implementation of consumer protection principles that they have been done. Head of Literacy and Financial Inclusion Department at OJK Agus Sugiarto said, OJK is obligated to make sure that both financial services institutions and their consumers perform obligations and receive their rights as promised.

OJK encouraged society to know and understand about benefits, costs and risks by reading all requirements and stipulation regarding financial products and services. As for financial services institutions, OJK asked them to make sure the aspects of transparency, fair treatment, reliable, consumer privacy and complaint handling are fulfilled.

So as to make sure and to measure how far implementation of consumer protection has been done, OJK will use self-assessment and thematic surveillance approaches.

Financial services institutions conduct assessment independently by fulfilling work sheets (self-assessment). The work sheets contain detailed steps that a financial services institution must fulfill, which function as measurement of how the financial service institution implements consumer protection principles. The assessment is performed in 3 phases, namely:

Regulation and policy on consumer protection;
Implementation of consumer protection stipulations; and
Evaluation of implementation of consumer protection stipulations.

The process of monitoring and analysis of consumer protection in financial services sector is carried out to fulfill stipulations on:

Education for consumers and/or society in effort to improve financial literacy;
Services and complaint handling by financial services institutions;
Convey of information in effort to market financial products and/or services;
Basic agreement between consumers and financial services institutions; and consumer privacy and security and/or private information.

Besides self-assessment, OJK will conduct field observation using thematic surveillance. Thematic surveillance is based on received complaints that bring wide impact on society. Additionally, OJK will also conduct mystery shopping, which is one of the ways to experience directly the interaction between financial services institutions and their consumers during marketing and sales.

Transparency in benefits, costs and risks must be explained. In this case, society members must also be careful and smart in taking benefits from financial products and services so that they choose the ones that are suitable with their needs, Agus Sugiarto said.

A series of activities and results of self-assessment and thematic surveillance will give inputs to authority in relation to monitoring over financial services institutions` compliance in implementing OJK Regulation Number 1/POJK.07/2013 on consumer protection in financial services sector and all its implementing regulations.

Furthermore, in a bid to maximize implementation of consumer protection, Consumer Protection and Education Department at OJK has developed a system of information, reports, education and consumer protection named PEDULI, which is accessible at http://peduli.ojk.go.id/. The system was developed with an aim to facilitate financial services institutions in online submission of report on plan and implementation of education program, report on complaint handling and result of self-assessment in consumer protection.

By using this system, financial services institutions are no longer obligated to send hard copy documents to OJK. As for OJK, the system helps to recapitulate reports that will later be referred when OJK make policy.

For more information:

Agus Sugiarto
Head of Literacy and Financial Inclusion Department, Financial Services Authority
Phone: (021)1500655
Email: Agus.Sugiarto@ojk.go.id
www.ojk.go.id

PR-OJK-Monitor-Implementation-of-CP-in-Financial-Services-Sector

Press Release: OJK to Monitor Implementation of Consumer Protection in Financial Services Sector

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