Supervision and Development of Microfinance Institutions are based

b. Assign employees appointed for training organized by the FSA c. Prepare means of operational Support and Supervision. Besides supervision is assigned to the local government districtcity includes several things, namely: a. Acceptance of the financial statements and impute data into the application system b. Conduct analysis of MFI’s financial statements c. Receive and analyze another report d. Do the follow up on other reports e. Prepare a work plan examinations, investigations, and follow up on the results of MFIs f. Impose of administrative sanctions to MFIs in addition to revoke the business license and fined g. Undertake measures appropriate response to MFIs experiencing liquidity problems and solvency were harmful to business continuity b. Examination Authority MFIs by financial services 1 In the framework of the implementation of the function of supervision, the FSA conduct an examination of the MFI 2 The examination of the MFI as referred to in paragraph 1 is delegated to the districtcity in region where MFI operates or other parties appointed by the FSA. 3 If necessary, the FSA can make a direct examination of the MFI either individually or jointly with local government districtcity or other parties appointed 4 The examination aims to: a. Obtain assurance regarding the actual condition of MFIs. b. Examine the suitability of conditions MFIs with legislation and practices regarding business healthy MFIs; and c. Ensure that MFIs have made efforts to fulfill its obligation to its customers. Article 9 describes the implementation of the examination will be undertaken of the MFI is based on: 1 The examination of the MFI is done by: a. Upon analysis of the periodic reports of MFIs should be assumed that the implementation of MFIs business activities intended to deviate from the legislation in the field of MFIs that could pose risks which harmful to MFI business continuity andor depositary interests in lending or financing activities and management savings b. Complaints or reports received from the public there is a presumption that the operation of business activities of MFIs deviate from the provisions of the legislation in force divides MFIs that may cause harm to the public. 2 The examination as referred to in paragraph 1 shall include an examination of the substance of the periodic reports and compliance with laws and regulations in the field of MFIs. 3 The examination referred to in Article 8 paragraph 3 shall be done in the case of suspected conditions: a. The occurrence of both MFI financial abuse by the directors, commissioners and employees of the MFIs. b. The liquidity and solvency difficulties that lead to dangerous conditions for the sustainability of the MFIs business. c. There is a deviation from Islamic principles for MFIs in conducting business based on sharia principles. d. Delinquent loans or financing the purchasing large enough to affect the financial condition of the MFIs e. The existence of irregularities in the form of a loan or financing fictitious f. The occurrence of errors in recording andor accounting calculations that result in financial losses for the MFI; g. There are conditions beyond the provisions under consideration of the FSA need to be inspected directly by the FSA of the MFI. MFIs that do not comply with the provisions in article 13 paragraph 1 and 2 the FSAs regulations, are subject to administrative sanctions in the form of a written warning, written warning sanction is given 3 times. If the validity period has not ended but the warning sanction has been fulfilled or obeyed by MFIs, the FSA or the districtmunicipality or other parties are appointed by the FSA to revoke the sanction of a written warning. And if sanctions not heed the warnings by the FSA MFI shall ask shareholders or meeting of cooperative members. B. The Effort of the Financial Service Authority FSA to Protect the Customer of Baitul Maal wat Tamwil BMT From the theory of Philip M. Hadjo on legal protection, it is found that legal protection Islamic Microfinance consumers is an important thing to make sure legal certainty, surety, and give legal protection to customers who have difficulty in withdrawing funds. To provide legal certainty and legal protection to customers of legal complaints process through an easy process and the existence of legal guarantees for customers as well as collateral against funds is unbelievably important savings for the community. 9

1. Preventive Protection

According to the Article 28, Law No. 21 of 2011 explains that the law has been set, 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; 9 Philipus M. Hadjon, 1987 Perlindungan Hukum Bagi Rakyat Indonesia, Suarabaya, Bina Indonesia, p.19. 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. 10 Legal protection is intended to prevent the occurrence of problems or disputes, the public is given the opportunity to raise objections or opinions before the governments decision received a definitive form. Based on the theory it can be understood that the law should protect the customer as the subjective conditions that must be created for the continued existence of the customer. In order to have the power of organized both structurally and individually in the process of business activities. Legal protection for customers preventively can be done to prevent disputes through government action based on the establishment of relevant norms. To provide legal certainty and legal protection for the customers of Islamic Microfinance Institutions, then the customer complaints mechanism must be made easily and quickly. It is the hope of every community as it adds the trust of people to be the customers of Islamic Microfinance Institutions. 11 As it has been regulated by Bank Indonesia number 161PBI2014 on consumer protection payment system services which determines that the customer suffered a loss financially, where one of them because of the difficulty to withdraw 10 Indonesia, Law No. 21 of 2011 Financial Service Authority 11 Kaffi Wanatul Ma’wa, Perlindungan Hukum Bagi Penyimpan Lembaga Keuangan Mikro Syariah Yang Mengalami Kerugian Finansial, 4 july 2016, p.m., http:hukum.studentjournal.ub.ac.id., 12:23, p 19-21