Philosophical Study of Interference in Setting the Legal Protection of Bank Customers in Indonesia

Objective – Evidence suggests that bank customers should be given increased protection in their dealings with banks. The objectives of this research are, first, to analyze state interventionism in the protection of bank customers in Indonesia, and, second, to determine and analyzed the form of state interventionism in the regulation of banks with regard to the protection of customers. Methodology/Technique – This research is partly normative in nature; it assesses the intervention of bank in the protection of customers who usually are the weaker party in the bank-customer relationship. Findings – The research further reveals that state interventionism is required to ensure the protection of customers against the excesses of market mechanisms. Both forms of state interventionism are necessary in order to protect and enhance the rule of law. In particular, this paper discusses the validity of standard clauses set forth in the Consumer Protection Act. Novelty – The paper concludes that the principle of freedom of contract can only be realized and meaningfully implemented if customers and banks are treated as equal partners in the customer-bank relationship. Type of Paper: Review