Customer Protection Inside the Court

information andor documents regarding consumers with accurate, honest, clear and not misleading. In addition, in Article 4 also explains more clearly how the obligation of businesses to support consumer protection financial services sector. Financial services businesses are required to provide or convey information about products or services that exist in financial institutions accurately, fair, clear and not misleading. Such information can be loaded in a document or any other medium that can be used as evidence. Business actors also have to submit information on the rights and obligations of consumers when making agreements with consumers. Article 8 b on Law No. 21 of 2011 about FSA are explaining the obligation of FSA is to decide and create the rules in financial service sector. Regulation of the Financial Services Authority No.1POJK.072013 About consumer protection financial services sector is one of the proves that the government is attempting to balance fairness between business and consumer. Than beside that we can conclude that the Repressive Protection in court can be divided into: 1 Solve the Dispute of Customer Protection as the Civil Case In Article 28, Law No. 21 of 2011 explains that the law has been set, the explanation is as follows. For the purpose of consumer and the community protection, FSA is authorized to perform loss action prevention actions of customers and community, of which includes: a. Providing information and education to the community regarding on the characteristics of the sector of financial service, service, and product; b. Requesting the Financial Services Institutions to stop the activity in the event that such activity potentially adverse to society; and c. Other measures of which deemed as might be necessary in accordance with the provisions of the law and regulation in the sector of financial services. 16 Then article 29 also explains that FSA conducts consumer complaint service that includes: 17 a. Preparing adequate equipment of the service complaints Consumers who aggrieved by the agent in the financial services institution; b. Preparing complaint mechanism for the Consumers who aggrieved by the agent in the financial services institution; and c. Facilitating the complaint settlement of the consumer who aggrieved by the agent in the Financial Service in accordance with law and regulation in the sector of financial services. It can be interpreted that the FSA has taken action to prevent the loss of consumers to set some rules such as providing information and educating the public on the characteristics of a Financial Institution. It is quite obvious because seeing now a lot of financial institutions, both Islamic and conventional offering their services to the public. The diversity of financial institutions are certainly different in character between financial institutions, ranging from product and services offered to the benefits to be obtained by the customer when using the financial institution. In 16 Indonesia, Law No. 21 of 2011 Financial Service Authority 17 Ibid addition the FSA also in article 29 set up the equipment adequate to serve the customers complaint which is harmed by Financial Institution. In this law, however, there is no further explanation on the devices referred to. Article 30 explains that the consumer is authorized to defend the law, such as submit the lawsuit of asking the compensation from the financial institution party. In Article 31, Law No. 21 of 2011 it is mentioned that provisions on the protection of consumers and the community will be more detailed in the Rule of Financial Service Authority Number 1POJK.072013. Article 30 1 In the context of the consumers and the community protection, the FSA shall be authorized to perform legal defense, defense includes: 18 a. Instructing or performing certain actions to the Financial Service Institution to settle consumer complaint of the consumer who aggrieved by the Financial Service Institution in question; b. Filing Lawsuit: 1. To re-obtain the aggrieved party assets that causes the loss, either under the power of other party to not in good faith; andor 2. To obtain compensation from the adverse party causes loss the consumer andor financial services institution as the result of violation to the law and regulation in the financial services sector. 1 Compensation as set forth in section 1 point b number 2 above shall only be used to settle the indemnity to the aggrieved party. 2 Solve the Dispute of Customer Protection as the Criminal Case. 18 Indonesia, Law No. 21 of 2011 on Financial Service Authority section 30. In Chapter XI of the Law No. 21 of 2011, it is found the mechanisms of investigation in resolving financial issues involving the FSA. The Financial Service Authority in overseeing Financial Institutions also conduct an investigation in cooperation with the police, but in the case of an investigation by the police are given special powers such as receiving reports from customers, notifications of information relating to financial institutions are detrimental to society. The Following is a description of the mechanisms of investigation in the invitation to this Law. In Article 49 1 Other than investigator officials of the National Police of the republic of Indonesia, certain Civil Servants officials whose scope of assignment includes the supervision financial services in the FSA shall be granted exclusive authority as investigator, as set forth in Criminal Procedure Code. 2 The civil servant set forth the in Article 27 section 2 could be appointed to be the civil servants investigator as set forth in section 1. 19 In this regulation also ex plain about the Investigators with the status of civil servants has the authority to: 20 1 To accept reports, notification, or claim from someone about the crime in the financial services sector. So the investigators in this case do its job to receive crime reports of problems related to financial services. Customers may also report the crime of financial services and they are entitled to receive legal protection. 2 Conducting investigation towards truth of the report or explanation concerning with the crime in the financial services; after receiving reports of criminal cases in the 19 Indonesia Law No. 21 of 2011 on financial service authority, section 49. 20 Ibid section 49-50 financial services sector, the investigator may conduct an examination of the case. Investigating the case really happened or not. 3 Conducting investigation against anyone who are suspected commit or include the crime in the financial services; investigators also conduct inspections and research on the person or group suspected of committing criminal acts in the financial services sector. 4 Summon, Examine, and ask for explanation and evidence from anyone who are allegedly committing as a witness in the crime of the financial services sector. In addition, Investigators also have rights in the examination of Conduct on clearing, records, and other documents relating to cases of suspected criminal acts in the financial services sector; 1 Investigators may conduct a search in every place that allegedly contained evidence at that place. The evidence may be in the form of books, records, and other documents and carry out seizure of goods that can be used as evidence in criminal financial services sector; 2 Request data, documents, or other evidence, both print and electronic service providers; 3 Under certain circumstances, investigators may ask the competent authorities to take precautions against those suspected of committing criminal acts in the financial services sector. a Criminal Sanction according to Law No. 21 of 2011 on Financial Service Authority : Article 52 of the FSA 21 1 Anyone who violates the provisions of Article 33 section 1, section 2, andor section 3 shall be subject to imprisonment for no more than 6 six years, and fine for no more Rp.15.000.000.000,00 fifteen billion rupiah. 2 In the event that the violation of the provision Article 33 section 2 or section 3 committed by a corporation, is shall be subject to the fine for no more than Rp. 45.000.000.000,00 forty-five billion andor as much as the amount of loss occurred by such violation. In Article 53 22 1 Anyone who deliberately ignores, not fulfill, or hampers the implementation authority of the FSA as set forth in Article 9 point c, point d, point e, point g, and Article 30 section 1 point a, shall be subject to imprisonment for at least two 2 years and fine at least of Rp. 500.000.000, 00 five billion or imprisonment for no more 6 six years and fine for no more Rp.15.000.000.000,00 fifteen billion. 2 in the event that the violation as set forth in section 1 above committed by a corporation, it shall be subject to fine at least Rp. 45.000.000.000,00 forty-five billion rupiahs In the transitional provisions in Article 55 1 Since 31 December 2013, the function, assignment, and authority of control and supervision the activity of the financial services in the sector of Capital Market, Insurance, Pension Fund, Financial Institutions, and other Financial Institutions change from Finance Minister and the Supervisory Board of Capital Market and Financial Institutions to the FSA. 21 Indonesia Law No. 21 of 2011 on financial service authority, section 50 22 Ibid, section 53 2 Since 31 December 2013 the functions, assignment, and authority of control and supervision to the activity of financial services in the sector of banking change from Bank Indonesia to the FSA. b Administrative Sanction Islamic Financial Institutions that proved to have violated causing financial loss to the customer can be sanctioned in accordance with article 33 administrative laws microfinance institutions, among others: a. Written warning

b. Fines to pay compensation

c. Termination the activity of Microfinance Institution by the directors or board of Microfinance Institutions and lifting and appointing a temporary replacement until a General Meeting of shareholders or meeting of Cooperative members raised an exact replacement with the approval of the Financial Services Authority. d. Revocation of Business License. In addition we need to know, there are also Circular Letter of FSA which can explain about Service and settlement of costumer complain on financial service Businesses.

b. Outside the Court

The solution to dispute of customer protection outside the court can be solved in Islamic Arbitration body. Because Islamic Microfinance Institutions is one of the financial institutions based on sharia, the dispute resolution of consumer complaints can be made through National Sharia Arbitration Body or BASYARNAS. This is in accordance with the Microfinance Institutions that use Islamic principles in running their business activities shall be conducted in accordance with fatwah sharia issued by the National Islamic Council, the Indonesian Ulama Council. It is stated in Article 12 of Law No. 1 of 2013 on Microfinance Institutions. 23 In addition in Article 49 of the point I of Law No. 3 of 2006 on changes to Law No. 7 of 1989 on Religious Court also mentions the relevant authority of religious courts in charge of examining, decide and resolve cases first level between the Islamic religion in the field Islamic Economics , which is then interpreted as an act or activity carried out according to Islamic principles, among others: a. Islamic Bank b. Islamic Microfinance Institutions c. Takaful d. Retakaful Reasuransi Syariah e. Islamic Mutual Funds f. Islamic Bonds 23 Kaffi Wanatul Ma’wa, Lo.cit.,p 19-21