Indonesian Financial Services Authority Enacts Consumer and Public Protection Regulation in the Financial Services Sector
Source: East Asia Forum
In line with the Indonesian government’s goal to build a strong financial sector, the Indonesian Financial Services Authority (OJK) recently enacted regulation concerning Consumer and Public Protection in the Financial Services Sector (POJK 6 of 2022). The POJK came into force on 18 April 2022, but micro-financial institutions are exempted for the next five years.
The enactment of the new POJK could majorly update the OJK’s stated goal of maintaining a stable and transparent financial sector while protecting consumers and society. Protecting the public interest was a concern that gave rise to the establishment of OJK back in 2012, so it was no surprise that its first regulation concerned consumer protection. The OJK is adapting to the rapid development of fintech and digital financing — a sector that attracted US$102 billion in global investment in 2021.