MA Finalizes Raperma on Bank Liquidation Disputes

The Supreme Court (“ MA ”), together with the Deposit Insurance Corporation (“ LPS ”), is finalizing the Draft Regulation of MA (“ Raperma ”) on Guidelines for the Settlement of Disputes involving Banks and Insurance Companies in Liquidation and Post-Liquidation Proceedings before the Commercial Court. The draft also addresses the threshold value of disputes that may be adjudicated by a single judge.

“In the initial draft, the threshold was proposed at Rp 1 billion; however, there has been discussion of increasing it to as much as Rp 2 billion,” said Sobandi, Head of the Administrative Affairs Agency of MA, to Hukumonline.

This Raperma will also govern the procedures for legal remedies available to customers whose deposits are declared ineligible for payment (unfit) by LPS. This provides a clearer avenue for depositors to seek justice without having to pursue prolonged claims based on unlawful acts (Perbuatan Melawan Hukum/PMH) before the District Court.

“It will be issued in the near future. It has already obtained approval in the MA leadership meeting,” he added.