Financial Service Business Actors Receive Wake-Up Call: OJK Lawsuits to Target Misconduct and Bad-Faith Transactions

Pursuant to Law No. 21 of 2011 on the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”), which was amended by Law No. 4 of 2023 on the Development and Strengthening of Financial Services (collectively referred to as “Law 21/2011”), the OJK has been granted the authority to undertake legal defense as a part of its consumer protection mandate. Said legal defense involves the filing of lawsuits in order to recover assets and/or secure compensation for parties harmed by actions that occur within the financial services sector.[1]