The Authority of The Financial Services Authority in Resolving Default Disputes in the Banking Sector

Abel Ananta Br. Siahaan; Anton Diary Steward  Surbakti

doi:10.71435/742659

Authors

Abel Ananta Br. Siahaan PUI- PT Criminal Law And Green Economy, Universitas Prima Indonesia
Anton Diary Steward Surbakti PUI- PT Criminal Law And Green Economy, Universitas Prima Indonesia

DOI:

https://doi.org/10.71435/742659

Keywords:

Financial Services Authority, Default, Banking Disputes, Debtors and Creditors, LAPS SJK

Abstract

The banking sector plays a vital role in supporting national economic development through the collection and distribution of funds to the public. In practice, the legal relationship between debtors and creditors arising from credit agreements often leads to disputes due to defaults. Such disputes may include late credit payments, bad debts, credit restructuring issues, and the execution of collateral by banks. Litigation-based dispute resolution is frequently considered ineffective due to its lengthy process, high costs, and complex procedures. Therefore, the role of the Financial Services Authority (Otoritas Jasa Keuangan/OJK) as a supervisory institution in the financial services sector is essential, particularly in consumer protection and banking dispute resolution. This study aims to analyze the regulations of OJK in resolving default disputes in the banking sector and to examine OJK's authority in resolving disputes between debtors and creditors. This research employs a normative juridical method with a statutory approach and a conceptual approach. The findings indicate that default dispute resolution in the banking sector is governed by various laws and regulations, particularly POJK Number 61/POJK.07/2020 and POJK Number 22 of 2023. OJK holds authority through mechanisms including Internal Dispute Resolution (IDR), banking mediation, and the Financial Services Sector Alternative Dispute Resolution Institution (LAPS SJK). However, several obstacles remain, including low public awareness of non-litigation mechanisms, suboptimal socialization of LAPS SJK, and limited bank compliance in consumer dispute resolution.

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