The Indonesia Financial Services Authority has imposed administrative sanctions on PT Indosaku Digital Teknologi for non-compliance in the management and supervision of debt collection activities, particularly those carried out through third parties. The action follows a special examination that found weaknesses in ensuring outsourced collection was conducted in a compliant, professional and ethical manner and in line with consumer protection requirements. The sanctions comprise an administrative fine of IDR 875,000,000, a written warning to Indosaku's President Director, and an order to prepare and implement a remediation plan for collection activities involving third parties. That plan must at minimum revise collection policies and procedures, conduct a full review and strengthening of cooperation agreements with third parties including conduct standards, compliance obligations, oversight, reporting and sanctions, improve quality control over operational performance, compliance, ethics and collection conduct, and strengthen training, monitoring, periodic evaluation and consumer complaint handling for collection personnel. OJK said the use of third parties does not transfer or reduce the provider's responsibility for collection practices and will closely monitor implementation of the remedial measures. It warned that any further non-compliance or additional violations could lead to stronger supervisory and enforcement action.

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