Capital Market Industry to Establish New Dispute Resolution Forum

 
Robert Sidauruk, Fathan Qorib
 
The capital market sector will soon have a new dispute resolution forum as mandated by Financial Services Authority (OJK) Regulation No. 1/POJK.07/2014 on Alternative Dispute Resolution Institutions for the Financial Services Sector (OJK Regulation).
 
The Capital Market Arbitration Board (BAPMI) will be responsible for establishing and managing the adjudication forum, which will be integrated with the existing dispute resolution center.
 
As part of establishment procedures, BAPMI has amended its bylaws to include the adjudication forum as one of its new services, in addition to other existing services such as providing binding opinions, mediation, and arbitration services.
 
The amendment is necessary to satisfy requirements under the OJK Regulation that mandate the dispute resolution agencies under its ambit to have an adjudication forum in addition to mediation and arbitration.
 
“We will add an adjudication forum as one of our new services in the near future,” informed Tri Legono Yanuarachmadi, BAPMI’s Executive Director, in Jakarta on Wednesday.
 
To avoid any overlap in authority between the new adjudication forum and the existing arbitration tribunal at BAPMI, Mr. Yanuarachmadi explained that the adjudication forum is designed to hear disputes related to transaction values below IDR 500 million. For disputes involving transactions of more than IDR 500 million, the arbitration tribunal will have jurisdiction.
 
 “The adjudication forum is designed to hear small claims,”added Mr. Yanuarachmadi.
 
Mr. Yanuarachmadi further explained that as the new adjudication forum is under the management of BAPMI, the adjudicators of this forum will be directly appointed by BAPMI’s Chairman. Decisions made by the adjudicator will only be binding if the consumer accepts the decision. Otherwise, an appeal may be brought to be heard before the arbitration tribunal or a court.
 
Accessibility Requirement
One of the requirements set by the OJK Regulation is that the alternative dispute resolution service must be accessible to the public. This is to be achieved by providing information and making services available throughout Indonesia. Mr. Yanuarachmadi admitted that this will beone of the biggest challenges for the new adjudication forum.
 
Despite the fact that many parties involved inthe capital markets have sought binding opinions from BAPMI, only a small number of disputing parties have used BAPMI’s arbitration tribunal. During 2013 – 2014, for instance, the arbitration tribunal managed by BAPMI has not handled any disputes. This indicates it will be challenging for BAPMI to educate the public about its services on alternative dispute resolution.
 
To satisfy the accessibility requirements as well as to inform the public about all of BAPMI’s services, it is currently formulating a strategy including considering whether to establish branch offices in regional centres or arrange video conferences to hear disputes. It is expected that BAPMI will have an action plan to satisfy the accessibility requirements set by the OJK in the new year.
 
“In 2015 BAPMI will have established the big picture for providing services at the regional level to satisfy the accessibility requirement. This will be achieved either by establishing branch offices or arranging video conferencing,” concluded Mr. Yanuarachmadi.
 
(For more information on OJK Regulation see ILB No. 2344)
 
(hot/kc)