Considering:
- That Financing Companies are required to comply with laws and regulations, standards, ethical values, prevailing principles and practices, act responsibly, and maintain a balance between the interests of shareholders and all other stakeholders, while applying consumer protection principles to encourage the creation of a conducive business environment.
- That the Indonesian Financial Services Association (APPI), encouraged by the Financial Services Authority (OJK), is expected to actively participate in supporting the implementation of market conduct discipline in order to maintain and enhance consumer trust in the financing industry, while also providing opportunities for the fair, efficient, and transparent growth of financing companies.
- That based on the two considerations above, a code of conduct is required to serve as a guideline for Financing Companies.
Referring to:
- Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
- OJK Regulation No. 46/2024 concerning the Development and Strengthening of Financing Companies, Infrastructure Financing Companies, and Venture Capital Companies;
- OJK Regulation No. 22/2023 concerning Consumer and Community Protection.
Decides:
TO ESTABLISH THE CODE OF CONDUCT FOR FINANCING COMPANIES
Article 1
Definitions
In this Code of Conduct for Financing Companies, the following terms shall mean:
- Financing Company, hereinafter abbreviated as FC, refers to an institution engaged in the financial services sector, conducting business either conventionally or based on sharia principles in accordance with laws and regulations in the financial services sector.
- Consumer refers to any individual who utilizes the products and/or services provided by the FC.
- Consumer Protection refers to all efforts that ensure legal certainty in providing protection to Consumers.
- Complaint Indicating a Dispute refers to a Consumer's expression of dissatisfaction due to actual and/or potential financial losses, reasonable and direct, caused by the FC's failure to fulfill the agreement and/or documentation related to the use of products and/or services that have been agreed upon.
- Complaint Indicating a Violation refers to information provided by Consumers and/or the public regarding indications of violations of laws and regulations in the financial services sector committed by the FC.
- Complaint refers to both Complaints Indicating a Dispute and Complaints Indicating a Violation.
- Complaint Service refers to the service provided by the FC to resolve Complaints in the financing services sector.
- Complaint Response refers to the explanation or final settlement offer provided by the FC to the Consumer.
- Dispute refers to a conflict between a Consumer and a Financial Services Provider that has gone through the complaint resolution process by the provider.
- The Board of Directors refers to the organ responsible for managing the FC in accordance with its objectives and representing it inside and outside of court as stipulated in the articles of association.
- The Board of Commissioners refers to the organ in each FC that carries out general and/or specific supervisory functions in accordance with the articles of association and provides advice to the Board of Directors.
- Employee refers to all individuals employed by the FC who receive wages and/or salaries.
- Financial Literacy refers to the knowledge, skills, and confidence that influence attitudes and behavior to improve the quality of decision-making and financial management for the purpose of achieving financial well-being.
- Financial Inclusion refers to the availability of access to affordable, quality, and sustainable FC products and/or services according to the needs and capacities of the public to improve financial well-being.
- Information refers to data, facts, or explanations presented in various formats and packaging through both electronic and non-electronic communication media.
- FC Code of Conduct refers to the code of conduct for FCs in designing, providing, and delivering information, offering products, drafting agreements, delivering services, handling Complaints, and resolving Disputes in an effort to realize Consumer Protection.
- The Indonesian Financial Services Association (APPI) is the association of financing companies that has received written approval from the Financial Services Authority.
Article 2
Consumer Protection Principles
As part of the financial services sector, FCs are required to implement the following consumer protection principles:
- Adequate education
- Disclosure and transparency of product and/or service information
- Fair treatment and responsible business conduct
- Protection of consumer assets, privacy, and data
- Effective and efficient complaint handling and dispute resolution
- Enforcement of compliance
- Healthy competition
Article 3
Financing Company Behavior (Market Conduct)
- FCs must act in good faith when conducting business activities and/or providing products and/or services to prospective Consumers and/or Consumers.
- FCs and/or third parties working for and/or representing the interests of FCs must treat or serve Consumers without discrimination, unless otherwise stipulated in laws and/or agreements.
- FCs are prohibited from engaging in actions that violate laws or societal norms.
- FCs are prohibited from cooperating with parties conducting financial sector business activities without proper licenses.
- FCs must prevent their Board of Directors, Board of Commissioners, Sharia Supervisory Board, Employees, and/or third parties working for or representing the interests of the FC from engaging in behavior:
- that enriches or benefits themselves or others; and/or
- that abuses authority, opportunity, or means due to their position or office, resulting in harm to Consumers.
- FCs must have and implement a code of ethics for Consumer and public protection established by the FC.
- FCs must carry out activities to improve Financial Literacy and Financial Inclusion for Consumers and/or the public as part of an annual program according to regulations.
- FCs must maintain the confidentiality and security of Consumer data and/or information in accordance with applicable laws and regulations.
- FCs must ensure information system security and cybersecurity resilience for Consumer Protection.
- FCs must design products and/or services that are appropriate for the target Consumers, meaning they match the needs and capabilities of the target Consumers, and the features, risks, and costs are aligned with them.
- FCs must provide clear, accurate, honest, easily accessible, and non-misleading information about their products and/or services to prospective Consumers and/or Consumers.
- FCs must include and/or mention in every offer, product and/or service information summary, promotion, or advertisement:
- the name and/or logo of the FC; and
- a statement that the FC is licensed and supervised by the Financial Services Authority.
- FCs must provide Consumers access to obtain and/or print a copy of the standard agreement document according to regulations.
- FCs must ensure that financing collection from Consumers is conducted in accordance with societal norms and laws and regulations.
- FCs must have and implement a complaint handling mechanism as submitted by Consumers in accordance with applicable regulations.
Article 4
Compliance Enforcement
In accordance with the provisions of POJK Number 46 of 2024 Article 15D paragraph 4, every Financing Company (FC) is required to comply with the Code of Ethics and Market Conduct Guidelines established by the Association. To enforce compliance with the Code of Ethics and Market Conduct Guidelines for Financing Companies, the following applies:
- The Board of Directors and Board of Commissioners of the Financing Company are responsible for ensuring compliance with the Market Conduct Guidelines for Financing Companies.
- The APPI Ethics Committee, together with the APPI Supervisory Board, receives and follows up on reports of violations of the Market Conduct Guidelines for Financing Companies.
