Bank Indonesia Regulation Concerning Banking Mediation

This Bank Indonesia regulation concerning banking mediation addresses the repercussions of disputes between the customer and the bank.

The resolution states that:

• Customers are not always satisfied with the bank’s resolution of their complaint, this may lead to disputes between the customer and the bank;
• Time consuming dispute settlements are a disadvantage to the customer and harm the bank’s reputation;
• Mediation is a simple, efficient and quick way of settling disputes between the customer and the bank.

The regulation begins by explaining the meaning of the terminology that it uses, and then states that:

• Mediation will be conducted by an independent banking mediation institution or Bank Indonesia;
• Mediation efforts will be limited to assisting customers and banks to review the dispute and reach an agreement;
• Bank Indonesia will appoint a mediator with a sound knowledge of banking, finance and law;
• The customer will submit a dispute settlement that fulfils certain requirements;
• The mediation process will begin after the customer has signed the agreement to mediate;
• The customer and the bank can assign the power of attorney to another party;
• The process of mediation will have to be completed within thirty days after the signing of the agreement.

The regulation also includes miscellaneous, transitional and closing provisions.