Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


Banking Dispute Resolution: Indonesian and Japan Practice

Author(s): Etty Mulyati, Efa Laela Fakhriah

The increased interaction between banks and customers has the potential to cause disputes, which result in loss of customers and damage to the bank's reputation. The judiciary is given the authority to resolve it, however, the judiciary is not the first choice but a special institution with certain authority, the process is fast, and the satisfaction of both parties is achieved. This article describes the practice of banking dispute resolution in Indonesia and Japan, by using comparative studies it can be concluded that the resolution of banking disputes in Japan through the court is very long, so that an alternative dispute resolution is developed outside the court by prioritizing mediation and conciliation through the Japanese Bankers Association. Unlike Indonesia, banking disputes are resolved in 2 stages, first the bank is obliged to immediately settle the complaint, if no agreement is reached, then the parties should submit a dispute resolution to the Alternative Institution of Indonesian Banking Dispute Resolution, in the forms of mediation, adjudication and arbitration.