Merger of 6 Institutions Involved in Financial Services Dispute Settlement

The Financial Services Authority (OJK) set December 2020 as a target for the merger of six institutions of involved in financial services dispute resolution. Arbitration institutions such as: 1. the Indonesian Capital Market Arbitration Board (BAPMI); 2. Indonesian Insurance Arbitration and Mediation Agency (BMAI); 3. Indonesian Arbitration and Mediation Agency for Underwriting Companies; (BAMPPI); 4. Pension Fund Mediation Agency (BMDP); 5. Indonesian Alternative Dispute Resolution Institution for the Banking Sector (LAPSPI); 6. Indonesian Financing, Pawnshop and Venture Capital Mediation Agency (BMPPVI), will be merged into one Alternative Dispute Resolution Agencies (LAPS).

Up to this moment, the six institutions are still operating separately in accordance with their respective sectors requirements. Meanwhile, OJK is in the process of preparing the necessary organizational structure and human resources especially related to the management board, which will be representative of the six sectors. According to OJK, these several institutions only received a few complaints while non of these institutions have received any large numbers of complaints themselves and were able to cope without difficulty with the number of complaints and disputes. This has triggered OJK to merge those institutions into LAPS for greater efficiency and to reduce operational costs. Moreover, considering that the number of integrated financial products continue to increase, it is also expected that LAPS will be able to improve efficiency of consumer protection. KBA/HES

Source: https://jateng.tribunnews.com/2019/12/14/lembaga-sengketa-industri-keuangan-selesai-di-2020