Banking Mediation

Banking Mediation


With reference to Bank Indonesia Regulation No. 8/5/PBI/2006 as already amended by Bank Indonesia Regulation No. 10/1/PBI/2008 and Bank Indonesia Circular No. 8/14/DPNP regarding Banking Mediation and the Financial Service Authority Circular No. 2/SEOJK.07/2014 regarding the Service and Settlement of Consumer Complaint at Financial Service Business Operators, please be informed of the Procedure for the Submission of the Settlement of Dispute by Customers via Banking Mediation as follows:

Definition of Banking Mediation

Banking Mediation is a process of a dispute settlement involving a mediator to assist the parties in dispute to achieve a settlement in the form of a voluntary agreement on some or all of the disputed issues. In this case the Banking Mediation function is carried out by the Financial Service Authority or the Alternative Dispute Settlement Institutions stated in the List of the Alternative Dispute Settlement Institutions determined by the Financial Service Authority.

Banking Mediation Function

The function of Banking Mediation is limited to the efforts to assist the customer and the Bank to basically review the dispute in the framework of reaching an agreement between the customer and the Bank.

Procedure for the Submission of the Dispute Settlement

  1. The submission of the dispute settlement via the Banking Mediation can be done by a customer or a representative of the customer.

  2. The dispute which can be submitted to Banking Mediation for settlement is the dispute which fulfils the following conditions:

    a. The dispute has been submitted for settlement by the customer to the Bank.
    b. The respective dispute is not in the process or has never been decided by an arbitration
        institution or court, or an Agreement facilitated by another Banking Mediation institution
        has not been reached.
    c. The respective dispute is a civil dispute.
    d. The respective dispute has never been processed in Banking Mediation
        facilitated by Bank Indonesia or the Financial Service Authority; and
    e. The submission of the dispute settlement does not exceed 60 (sixty) business days after
        the date of the letter regarding the settlement of Dispute sent by the Bank to the
        customer.

  3. The financial claim in the Banking Mediation is submitted in Rupiah, maximum IDR 500,000,000 (five hundred million rupiah). A customer cannot submit a financial claim resulting from immaterial losses.

  4. The submission of the dispute settlement is done in writing by completing the form
    for the dispute settlement by attaching documents in the forms of :
    a) Photocopy of the letter regarding the Dispute settlement sent by the Bank
        to the customer;
    b) Photocopy of the customer’s identity which is still valid;
    c) A statement signed on sufficient stamp duty that the respective dispute is not
        is not in the process or has not been decided by an arbitration institution, court or
        another Banking Mediation institution, and has never been processed in a
        Banking Mediation facilitated by the Financial Service Authority/Bank Indonesia;
    d) Photocopy of the supporting documents related to the respective dispute; and
    e) Photocopy of a power of attorney, if the submission of the settlement of dispute is
        authorized to another person.

  5. The submission of the dispute settlement by a customer is addressed to:
    The Chairman of the Board of Commissioners of the Financial Service Authority
    Attn. Consumer Education and Protection Sector
    Menara Radius Prawiro – 2nd Floor
    Bank Indonesia Office Complex
    Jl. M.H. Thamrin No. 2
    Jakarta 10350
    with a copy to the Bank.

  6. The Banking Mediation process is carried out after the customer or the customer’s representative and the Bank sign an agreement to mediate or a facilitation agreement which contains:
    a) an agreement to choose the Banking Mediation facilitated by the Financial Service
        Authority for the dispute settlement; and
    b) an agreement to abide by and subject to the rules of the Banking Mediation or
        the facilitation rules determined by the Financial Service Authority.

  7. The implementation of the Banking Mediation process until the signing of the Agreement is done maximum within 30 (thirty) business days from the date the customer or the customer’s representative and the Bank sign the agreement to mediate or the facilitation agreement and the period can be extended for another 30 (thirty business days based on an agreement between the customer or the customer’s representative and the Bank.

  8. The agreement between the customer or the customer’s representative and the Bank received from the Banking Mediation process shall be written in an Agreement signed by the customer or the customer’s representative and the Bank.

 

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