OJK: 31% Financial Institution Ads Violate Regulations

Translator

Ririe Ranggasari

Editor

Laila Afifa

17 November 2020 22:48 WIB

TEMPO.CO, Jakarta - The Financial Services Authority (OJK) recorded thousands of advertisements for financial institutions broke rules. The regulator said that of the 10,361 advertisements published by financial service institutions published from January 2019 to September 2020, 3,224 or 31 percent are in violation of applicable regulations.

"According to our records, 31 percent broke the rules. Some are unclear, blur, claim safe, all sorts. Some are misleading, for example claiming to have the lowest costs, being the best, and others. Some are also inaccurate," Tirta Segara, OJK's Board of Commissioners member for education and consumer protection, said during the Indonesia Marketing Association's virtual discussion on 'Financial Sector Consumer Protection in the Digital Age', Tuesday 17 November.

Based on the type of violation, 94 percent are categorized as showing unclear advertisements, 5 percent categorized as misleading, and the remaining 1 percent is for inaccuracies. 

Meanwhile, based on the sector, 72 percent of advertisement violations were committed by the banking sector. The non-bank financial industry (IKNB) account for 27 percent violations, while the capital market sector committed 1 percent.

Tirta said that advertising supervision is part of OJK's work to monitor how financial services companies communicate their products and services to consumers and prospective consumers, as advertisement is part of sales and marketing practices.

Read: OJK Speaks Up about Maybank Indonesia Legal Feud with Customer

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