Banks need to improve services: BI

Aditya Suharmoko , The Jakarta Post , Jakarta | Tue, 04/01/2008 12:15 PM | Business

Banking payment systems, including payments using credit cards and ATMs, tops the list of complaints submitted by banks' customers nationwide, Bank Indonesia has found.

Between January 2006 and February 2008, BI received 262 complaints -- more than a third of which were about problems with banking payment systems, according to BI deputy governor Muliaman D. Hadad Monday.

However, with customers often using the media to complain, Muliaman suggested the figure could be even higher, and therefore "the dispute resolution function in each bank must be improved."

"It is important for banks to serve their customers given the current competition. Banks that are able to serve their customers ideally will have loyal customers," Muliaman said.

According to the Indonesian Consumers Foundation (YLKI), complaints about the banking sector ranked second last year, just after the housing sector.

YLKI received 66 complaints about bank services last year, with 43 about credit cards.

"Some banks often do not respond to our clients' complaints, and when they do, they ask for demanding evidence, which most of the time our clients cannot provide," YLKI head Indah Sukmaningsih said.

Indah said many customers who had filed reports to the YLKI were reluctant to complain to banks as they thought their complaints would not be addressed quickly and fairly.

Indah agreed with BI that banks should be more proactive and professional in dealing with clients' complaints, especially as BI was trying to restructure the country's banking sector.

Under the Indonesian Banking Architecture (API), BI aims to build a strong and efficient banking sector to support the economy.

Consumer protection is one of the six pillars in API. BI put a focus on consumer protection after learning many banks do not respond effectively to consumers' complaints.

BI has established a banking mediation body to settle disputes between banks and their clients that cannot be solved between the two sides independently.

The body will settle disputes with a maximum potential loss of Rp 500 million (US$54,348) only.

"In the mediation body, the case will be reevaluated so customers will have a clear picture of their disputes with banks," Muliaman said.

The body has managed to settle 87 percent of the 262 cases it has heard, involving 42 banks nationwide.

Muliaman also said BI would continue to increase public awareness about dispute resolution through public discussions, seminars and advertising.

"We expect that this will keep the banking sector stable."

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