TEMPO.CO, Jakarta – Indonesian banks question the purpose of establishing an Alternative Dispute Resolution (ADR) for the financial industry. Some parties asses that the establishment of this institution, promoted by the Financial Services Authority (FSA), will only increase the length it takes to resolve disputes.

"This whole time, disputes that cannot be resolved internally are taken to law institutions. Was enough," Gatot Suwondo, chairman of State-Owned Banks Association, told Tempo yesterday.

Meanwhile, National Commercial Banks Association chairman Sigit Pramono said that banks do not have an alternative institution that can help with dispute resolutions. Such an institution is needed to bridge customers and the public with financial service businesses.

"The capital, insurance, and pension funds markets already have that kind of an institution," Sri Rahayu Widodo, OJK deputy commissioner for Education and Consumer Protection, said last weekend.

The many disputes between customers and financial institutions are triggered by the growing number of financial industries—both banks and non-banks. As of June 2014, there were 119 commercial banks with a total asset of Rp5,198 trillion. Meanwhile, conventional non-bank financial industries amount to 958 units.

Since the beginning of the year until June 3, there have been 1,375 complaints received by the OJK. Most complaints came from non-bank financial sector with 158 complaints; the rest came from the stock market, banks, and others.

MAYA NAWANGWULAN | FAIZ NASRILLAH