Indonesia Diagnostic Review of Consumer Protection and Financial Literacy : Volume 1. Key Findings and Recommendations
This diagnostic study was undertaken by the World Bank in response to a request from Otoritas Jasa Keuangan (OJK), the Indonesian Financial Services Authority, and Bank Indonesia, the nation’s central bank. Indonesia’s financial sector has a lot of...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/219831483596344928/Key-findings-and-recommendations http://hdl.handle.net/10986/25878 |
| Summary: | This diagnostic study was undertaken by
the World Bank in response to a request from Otoritas Jasa
Keuangan (OJK), the Indonesian Financial Services Authority,
and Bank Indonesia, the nation’s central bank. Indonesia’s
financial sector has a lot of growth potential considering
the relatively low volume of domestic credit provided by the
private sector - just 43 percent of gross domestic product
(GDP) in 2012. To steer the growth to sustainability, the
Indonesian authorities have emphasized financial consumer
protection in the 5 pillars of Indonesia’s national strategy
for financial inclusion. This review aims to assist
Indonesia in developing and implementing its national
strategy and provides a detailed assessment of the consumer
protection framework in six segments of Indonesia’s
financial sector: banking, securities, insurance, non-bank
credit institutions, private pensions, and credit reporting.
This study also informed the design of the World Bank’s
support program for Indonesia under the financial inclusion
support framework (FISF) initiative. The review addresses
the following issues: (1) institutional arrangements, (2)
legal and regulatory framework, (3) transparency and
disclosure, (4) business practices, (5) complaints handling
and dispute resolution mechanisms, and (6) consumer
awareness and financial literacy. Volume I summarizes the
key findings and recommendations and volume II assesses each
financial sector segment with regard to the good practices
for financial consumer protection. |
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