OJK to Revise Bank Account Regulations Amid Public Outcry Over Dormant Account Freezes
Main Takeaways
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BANDUNG, Indonesia — Indonesia’s Financial Services Authority (OJK) has pledged to revise all existing bank account regulations, including rules governing dormant accounts, following widespread criticism over a controversial freeze of 28,000 inactive accounts.
Speaking at a media discussion in Bandung on Saturday, Aug. 2, 2025, Chief Executive of Banking Supervision at OJK Dian Ediana Rae said the overhaul aims to clarify the rights and responsibilities of both banks and customers to maintain trust and ensure financial stability.
The move comes after the Financial Transaction Reports and Analysis Center (PPATK) temporarily blocked thousands of dormant accounts—those inactive for three consecutive months—citing risks of misuse by cybercriminals and organized crime. However, the mass freeze has drawn backlash from consumer groups, legal experts, and the public, who say the policy was implemented without due process and hurt law-abiding account holders.
“OJK will revise all account-related rules comprehensively, including those on dormant accounts. We must ensure that the rights of both banks and customers are clearly defined and protected,” said Dian.
He added that in cases involving illicit transactions, perpetrators would be blacklisted from the banking system in line with international best practices. “We will take any necessary steps to ensure the integrity of our financial system,” he said.
Public Confusion and Pushback
PPATK chief Ivan Yustiavandana earlier defended the freeze, saying it was a preventative measure to avoid account misuse by unauthorized parties, especially for accounts abandoned by customers unaware they still existed.
“We are protecting public accounts marked as dormant from potential misuse, such as hacking or criminal activity,” Ivan said on Tuesday, May 20, 2025. “Many people forget about these accounts, and some even become targets for illegal resale.”
He emphasized that banks would notify customers and confirm whether they wanted to maintain or close their accounts. “We’re protecting the public interest here,” he insisted.
Yet, the sweeping freeze caused panic among customers, especially those who had left small amounts of money in unused accounts for future needs—such as parents saving for education. Many also complained about the slow, bureaucratic process to reactivate frozen accounts.
Government and Consumer Watchdog Intervene
Coordinating Minister for Political, Legal and Security Affairs Budi Gunawan called for PPATK to ensure consumer protection and transparency.
“The government guarantees that the public’s rights will be safeguarded,” Budi said on Wednesday, July 30. “We are listening carefully to public complaints and will coordinate with PPATK and other stakeholders to prevent further distress.”
The Indonesian Consumers Foundation (YLKI) was among the most vocal critics. It accused PPATK of failing to provide clear explanations or procedures for affected users and warned that arbitrary blocking violated consumer rights.
“PPATK must offer detailed and transparent information to consumers regarding the freeze, and provide a clear mechanism for recovery,” said YLKI Executive Secretary Rio Priambodo.
YLKI also urged authorities to avoid blanket policies that could hurt customers who deliberately maintain dormant accounts for long-term savings such as pensions or education.
“Account holders must be informed in advance and given a chance to respond, especially if the account was not involved in illegal activities like online gambling,” Rio said.
YLKI further demanded that the unfreezing process be streamlined and that PPATK guarantee the full safety of customer funds. It also recommended the creation of a hotline or crisis center to help affected consumers recover their accounts efficiently.
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