In recent years, consumer protection issues in the financial services sector have become a serious concern. The increasing number of consumer complaints against Financial Services Business Actors (Pelaku Usaha Jasa Keuangan – “PUJK”) indicates the continued existence of practices that are detrimental to the public, including product mis-selling, lack of information transparency, mismanagement of funds, and misuse of consumer data. This condition is further exacerbated by the proliferation of illegal financial entities and the growing complexity of digital financial products, which are often difficult for consumers to understand.
In practice, consumers frequently encounter obstacles in pursuing their rights through litigation due to limitations in cost, time, and access to legal assistance. Dispute resolution mechanisms through mediation or alternative dispute resolution bodies often fail to provide a sufficient deterrent effect or optimal recovery of losses. In response to these conditions, on 18 December 2025, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) issued OJK Regulation No. 38 of 2025 on Civil Lawsuits Filed by OJK for Consumer Protection in the Financial Services Sector (“OJK Regulation 38/2025”). This regulation grants OJK the authority to file civil lawsuits before the court in the interest of consumers who have suffered losses.
OJK Regulation 38/2025 was issued pursuant to OJK’s authority as stipulated under Article 30 paragraph (1) letter b and Article 30 paragraph (2) of Law No. 21 of 2011 on the Financial Services Authority, as amended by Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector. This regulation also revokes several provisions concerning lawsuits previously regulated under OJK Regulation No. 22 of 2023 on consumer protection. The scope of regulation under OJK Regulation 38/2025 covers the following:
- OJK’s authority to file lawsuits
- The objectives of lawsuits for consumer protection
- The conduct of lawsuits before the court
- The implementation of court judgments
- Report on the implementation of court judgments
OJK Regulation 38/2025 provides a clear legal basis for OJK to act as a plaintiff in civil cases related to violations that cause losses to financial services consumers. This authority is derived from the OJK Law and further strengthened by the Development and Strengthening of the Financial Sector (Pengembangan dan Penguatan Sektor Keuangan – “P2SK”) framework. The regulation affirms that lawsuits filed by OJK do not constitute class actions, but rather institutional lawsuits submitted in the public interest.
OJK may act without having to wait for a request from specific consumers if supervisory findings indicate the existence of violations that result in consumer losses. The primary objectives of such lawsuits include the recovery of consumer losses and the restitution of assets unlawfully controlled by financial services business actors. The lawsuits are based on the principle of unlawful acts (perbuatan melawan hukum), which encompass violations of financial services sector regulations, fault on the part of the business actor, actual losses suffered, and a causal relationship between the violation and the losses incurred.
The regulation also governs transparency mechanisms through the announcement of a list of consumers who are protected under the lawsuit. Consumers are granted the right to opt out if they do not agree to be included. All litigation costs are borne by OJK, ensuring that consumers are not burdened with legal process expenses. In the enforcement stage of court judgments, OJK is responsible for overseeing the distribution of compensation to consumers. Where consumers cannot be located or refuse payment, the funds may be deposited in accordance with applicable legal mechanisms.
From a legal perspective, this OJK Regulation strengthens the role of the state in protecting consumers in the financial services sector. OJK not only functions as a regulator and supervisor, but also as an active litigation actor advocating for the public interest. The regulation is expected to enhance compliance among financial services business actors due to the risk of direct civil claims initiated by the authority. The resulting deterrent effect is anticipated to improve governance quality, transparency, and risk management. From the consumer’s perspective, this regulation expands access to justice, as consumers who suffer losses are not required to bear the costs and risks of legal proceedings independently.
The objectives of filing lawsuits under this OJK Regulation include:
- Recovering assets belonging to affected consumers from parties that caused the losses, whether such assets are under the direct control of the business actor or other parties acting in bad faith;
- Obtaining compensation for consumers who have suffered losses as a result of violations of financial services sector regulations.
OJK Regulation 38/2025 represents a strategic step in strengthening the consumer protection framework within Indonesia’s financial services sector. The authority granted to OJK to file lawsuits creates a more effective law enforcement mechanism that is oriented toward the recovery of public losses. This regulation reinforces OJK’s role as a protector of public interests, enhances the accountability of financial services business actors, and strengthens public confidence in the national financial system. In other words, through this regulation, consumer protection in the financial services sector is being optimized to address the longstanding deficiencies in consumer protection in Indonesia.
For legal assistance from SW Counselors at Law, please contact:
Fanny, S.H.
Senior Associate
T. (+6221) 2222-0200
Bella Siboro, S.H.
Associate
T. (+6221) 2222-0200
