LAPS-SK Membership is Now Mandatory for Financial Service Organizers

As Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (“Law 4/2023”) mandates the establishment of institutions that can provide out-of-court dispute resolution for consumers operating within the financial sector,[1] Bank Indonesia (“BI”) previously responded by issuing Regulation No. 3 of 2024[SP1]  (Regulation 3/2024) on Alternative Dispute Resolution Institutions Operating Within the Financial Sector (Lembaga Alternatif Penyelesaian Sengketa Sektor Keuangan – “LAPS-SK”).[2]