News & events

How Much Do Dispute Resolution Services Cost at LAPS SJK? Check the Complete Information!

How Much Do Dispute Resolution Services Cost at LAPS SJK? Check the Complete Information!

Have you ever wondered about the costs involved when applying for dispute resolution through the Financial Services Sector Alternative Dispute Resolution Service or LAPS SJK?

Especially if you have filed a complaint through the Consumer Protection Portal Application (APPK) and want to know if there will be any fees charged if your dispute is resolved at LAPS SJK? Let's discuss this further.

First, we need to know which category our dispute request falls into.

Categories of Disputes at LAPS SJK

At LAPS SJK, there are two main categories of disputes that can be resolved, namely:

1. Retail & Small Claims Disputes

These include disputes where the value of the consumer's claim against the Financial Services Provider (FSP) meets a certain threshold for which no fee is charged.

Retail & small claims disputes are types of disputes that fall into the category of disputes with relatively lower claim values and usually involve consumers and financial service providers.

The term "retail" in this context refers to financial transactions or services conducted by individuals or consumers directly with financial service providers, such as banks, insurance companies, finance companies, and so on.

Retail & small claims disputes usually have a threshold claim value set by a dispute resolution institution, such as the Financial Services Sector Alternative Dispute Resolution Service (LAPS SJK). Disputes with a claim value below this threshold fall into this category.

This type of dispute resolution is often done through mediation or negotiation between the consumer and the financial service provider, with the aim of reaching an agreement that satisfies both parties without having to go through a longer and more expensive judicial process.

Retail & small claims disputes show a focus on relatively simpler, faster, and more economical dispute resolution, especially in the context of financial services between consumers and financial service providers.

2. Commercial Disputes

Disputes with a claim value that exceeds the dispute value threshold for the retail & small claims category. Commercial disputes are types of disputes that arise in the context of business or commercial transactions between companies, business entities, or other business entities.

Unlike retail & small claims disputes that usually involve consumers and relatively low value claims, commercial disputes tend to have higher value claims and greater complexity.

Some of the characteristics of commercial disputes include:

• High Value of Claims

Commercial disputes often involve large sums of money, whether in terms of payment, breach of contract, claims for damages, and so on.

• Involvement of Business Parties

These disputes involve companies, business entities, or other business entities as parties to the dispute. It can involve business contracts, transaction settlements, ownership disputes, and other business law issues.

• Complex Settlement Process

Due to their complexity, commercial dispute resolution often requires an in-depth understanding of applicable business laws, trade regulations, contractual agreements, and business practices.

• Diverse Settlement Paths

Commercial disputes can be resolved through various channels, such as negotiation, mediation, arbitration, or through litigation in court, depending on the agreement and needs of the disputing parties.

• Significant Settlement Costs

The commercial dispute resolution process can involve significant costs, including attorneys' fees, administrative costs of the court or dispute resolution body, and other costs associated with the legal process and settlement.

Commercial disputes often require a careful, professional and structured approach to achieve a fair and effective settlement for all parties involved. A good understanding of business law, good negotiation and the choice of appropriate resolution channels can help reduce conflict and achieve satisfactory solutions in commercial disputes.

Dispute Value Thresholds

The dispute value thresholds for both categories are set in accordance with the LAPS SJK Regulation on Dispute Resolution Service Fees. The following are the dispute value thresholds for the different areas:

• The Pawnbroking, Financing and Fintech sectors have a threshold of up to Rp200,000,000.00 (two hundred million rupiah).
• Banking, Capital Markets, Life Insurance, Pension Funds, Venture Capital, and Guarantee. Has a threshold value of disputes with consumer claims to PUJK of up to Rp500,000,000.00 (five hundred million rupiah).
• General Insurance has a threshold of up to Rp750,000,000.00 (seven hundred and fifty million rupiah).

Dispute Settlement Fee

If the value of your dispute does not exceed the value threshold for the retail & small claims category, then you will not be charged any fees for the dispute resolution.

However, if the value of your dispute exceeds the value threshold for that category, then there will be fees that you will have to pay. These fees consist of:

• Mediation Application Registration Fee
• Mediation Administration Fee
• Mediator Honorarium

In addition to the mandatory fees, there are also tentative fees that may be required during the mediation process, such as meeting fees and costs of implementing the mediation outcome.

It is important to understand the dispute value thresholds set by LAPS SJK and ensure that your dispute falls into the right category in order to know if any fees are payable.

Further information on fees can be accessed through the fees regulations available on the LAPS SJK website. Thus, you can be well prepared before proceeding with the dispute resolution process at LAPS SJK.