BI Obliges Banks to Fortify Consumer Protection Through Loss Compensation Mechanisms

In June 2023, Bank Indonesia (“BI”) issued Regulation No. 3 of 2023 on BI Consumer Protection (“Regulation 3/2023”) in an effort to achieve financial sector reform through increased consumer protection.[1] As a way of implementing the provisions set out under Regulation 3/2023, the BI Board of Governors has now issued Regulation No. 20 of 2023 on Procedures for the Implementation of BI Consumer Protection (“Regulation 20/2023”). This Regulation now serves as a technical framework that addresses provisions previously set out under Regulation 3/2023.[2]