Legal News Update
Prepared by Almaida Askandar, S.H., MBA
Published on 30 April 2026 by IABF Law Firm, Jakarta, Indonesia
Consumer Protection in the Financial Services Sector: OJK’s Authority to File Lawsuits
To strengthen consumer protection in the financial services sector, the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”) issued OJK Regulation Number 22 of 2023 on Consumer and Public Protection in the Financial Services Sector (“OJK Reg No. 22/2023”) in 2023. Under Article 98 of OJK Reg No. 22/2023, OJK is granted the authority to file lawsuits as a form of representation to defend the interests of consumers and the public who have suffered losses due to the actions of financial service providers or other parties within the financial services sector.
However, OJK Reg No. 22/2023 only provides a general framework for such litigation authority and does not set out detailed implementation mechanisms. Therefore, in 2025, OJK issued OJK Regulation Number 38 of 2025 on Lawsuits by the Financial Services Authority for Consumer Protection in the Financial Services Sector (“OJK Reg No. 38/2025”). This regulation specifically governs OJK’s authority to file lawsuits and revokes the relevant provisions previously stipulated under OJK Reg No. 22/2023.
Pursuant to Article 3 of OJK Reg No. 38/2025, OJK has the authority to initiate legal action against Financial Service Providers (Pelaku Usaha Jasa Keuangan or “PUJK”) that are licensed, or were previously licensed, by OJK, and/or other parties acting in bad faith that have caused losses to consumers. Such legal action is intended to recover assets belonging to affected consumers and/or to obtain compensation from the parties responsible for the losses, for the benefit of consumers and/or financial service institutions, as applicable. In exercising this authority, OJK must adhere to the principles of public interest, utility, legal certainty, and fairness.
It is important to note that OJK’s authority to file lawsuits is based on legal standing granted by law and does not constitute a class action. Accordingly, such claims may be filed by OJK without requiring a special power of attorney from consumers and may be brought solely on the basis of OJK’s own assessment. Although there are no further provisions regarding the basis for such an assessment, reference to the elucidation of the relevant article in OJK Reg No. 38/2025 indicates that the assessment refers to OJK’s determination that a party’s violation of financial services laws and regulations has resulted in material losses to consumers in the financial services sector and that supervisory measures have been taken against such party.
Given that a lawsuit by OJK may be filed without requiring any special power of attorney from consumers, the process differs from general litigation. In such cases, OJK is required to publish a list of consumers included in the lawsuit. The publication must remain available for 30 (thirty) business days, during which any consumer who does not wish to be included may submit a written statement of withdrawal to OJK.
This mechanism requires consumers to take a more active role in monitoring the consumer list announced by OJK. If a consumer does not submit a withdrawal statement after the specified period has elapsed, the consumer will be deemed to have waived the right to withdraw and will be included in the list of consumers in OJK’s lawsuit. Conversely, if a consumer submits a withdrawal statement within 30 (thirty) business days of the announcement, the consumer will be removed from the list of consumers in the lawsuit. Consumers who withdraw from the list retain the right to file their own lawsuit. However, they will not be entitled to recover assets and/or receive compensation under the lawsuit filed by OJK.
From the consumer’s perspective, OJK’s authority to file lawsuits reflects the government’s strong commitment to enhancing consumer protection in the financial services sector. Moreover, in lawsuits initiated by OJK, consumers included in the list are not required to bear any costs throughout the entire process, from the filing stage to the enforcement of the court’s decision.
Contributors
1. Almaida Askandar, S.H., MBA
2. Jennifer Laura, S.H.
3. Rania Adhara Safira, S.H.
Disclaimer
This news update is prepared for general informational purposes only. The content does not constitute legal advice, a legal opinion, or counsel from IABF Law Firm. The information contained herein may not reflect the most current developments. Any quotation, distribution, or use of this information for any purpose is solely at the user’s own risk.
