Within the Indonesian legal framework, financial technology (fintech) is recognized as Financial Sector Technology Innovation (Inovasi Teknologi Sektor Keuangan/ITSK), as regulated under Financial Services Authority Regulation Number 3 of 2024. ITSK is defined as technology-based innovation that affects products, activities, services, and business models within the digital financial ecosystem. Entities conducting such activities are referred to as ITSK providers and are categorized as Financial Services Business Actors (Pelaku Usaha Jasa Keuangan/PUJK) under the supervision of the Financial Services Authority (Otoritas Jasa Keuangan/OJK).
Fintech operations encompass a wide range of digital financial service activities, including fund collection and distribution, risk management, investment management, activities related to digital financial assets, and other digital financial services. Therefore, in the event of transaction-related issues—such as prolonged failed fund transfers without clear resolution—fintech providers remain legally obligated to consumers.
Regulation Number 3 of 2024 requires fintech providers to implement principles of good corporate governance, risk management, information system security and reliability, consumer and personal data protection, and compliance with all applicable laws and regulations. Consumer protection in fintech operations is explicitly carried out in accordance with consumer protection provisions in the financial services sector, as further regulated under Financial Services Authority Regulation Number 22 of 2023.
As PUJK entities, fintech providers are required to establish and manage consumer complaint handling services. When consumers submit complaints regarding unresolved transactions, fintech providers are obligated to receive, record, and document such complaints, whether submitted verbally or in writing. Fintech providers must also acknowledge receipt of the complaint and follow up within the time limits stipulated by OJK regulations.
Verbal complaints must be resolved within a maximum of five working days from the date the complaint is received. Meanwhile, written complaints must be resolved within a maximum of ten working days from the date complete supporting documents are received, with the possibility of an extension under justifiable circumstances. In every complaint resolution process, fintech providers are required to respond to consumers, either by providing an explanation when no error is found or by offering a settlement when errors or negligence have resulted in actual or potential consumer losses.
If a fintech provider fails to respond, does not follow up on complaints, or does not resolve consumer transactions without valid justification, the provider may be subject to administrative sanctions imposed by OJK. Such sanctions may include written warnings, restrictions on business activities, suspension of products or services, removal of management, administrative fines, or revocation of business licenses. The amount of administrative fines imposed may reach significant levels in accordance with applicable laws and regulations.
In addition to filing complaints with fintech providers and OJK, consumers also have the right to pursue civil legal remedies under Law Number 8 of 1999 concerning Consumer Protection. One of the obligations of business actors under this law is to provide compensation, indemnification, and/or replacement for losses suffered by consumers as a result of the use of traded goods and/or services. Such compensation may take the form of refunds, equivalent service replacements, or other forms of compensation in accordance with applicable legal provisions.
If a business actor refuses or fails to fulfill consumer compensation claims, consumers are entitled to file civil lawsuits through the Consumer Dispute Settlement Agency or through the district court having jurisdiction over the consumer’s domicile. Accordingly, fintech providers cannot disregard their legal responsibility for unresolved transactions, as both the financial services legal regime and consumer protection law provide a strong legal basis for consumers to obtain legal protection.
