Perbanas to Establish ADR Institution

 
Fathan Qorib, Andin Aditya Rahman
 
The recently issued Financial Services Authority (OJK) Regulation No. 1/POJK.07/2014on Alternative Dispute Resolution Institutions for the Financial Services Sector sets out a requirement for financial services businesses to establish alternative dispute resolution (ADR) institutions.
 
The OJK has set 31 December 2015 as the deadline for the required entities and their related financial service institutions and associations to form ADR institutions. The sectors to which this requirement applies are the financing, credit insurance, pawnshop (pegadaian), and banking sectors.
 
“The OJK encourages associations and all businesses in the financial services industry to create an ADR institution as provided for under the Regulation to be implemented by the end of December 2015 at the latest,” wrote Sri to Hukumonline last Thursday.
 
In response to the Regulation, the Indonesian Banks Association (Perbanas) said that it is getting ready to establish an ADR institution of its own.
 
“We at Perbanas are getting ready for that,” stated the Perbanas Chairman, Sigit Pramono, last Friday.
 
According to Sigit, the banking sector is the only sector within the financial services industry that does not have an ADR institution established by its related business association. Up until now, Bank Indonesia has assisted with disputes between banks and their customers. Sigit said that Perbanas has started the initial phases for establishing an ADR institution.
 
“We have only conducted two meetings to discuss this,” he said.
 
For more information on the OJK regulation discussed in this news article, see ILB No. 2344
 
(hot/kc)