BI Obliges Banks to Fortify Consumer Protection Through Loss Compensation Mechanisms

In June 2023, Bank Indonesia (“ BI ”) issued Regulation No. 3 of 2023 on BI Consumer Protection (“ Regulation 3/2023 ”) in an effort to achieve financial sector reform through increased consumer protection. [1] As a way of implementing the provisions set out under Regulation 3/2023, the BI Board of Governors has now issued Regulation No. 20 of 2023 on Procedures for the Implementation of BI Consumer Protection (“ Regulation 20/2023 ”). This Regulation now serves as a technical framework that addresses provisions previously set out under Regulation 3/2023. [2]