Supreme Court Regulation Number 1 of 2026 Establishes Guidelines for the Settlement of Liquidated Bank Deposit Disputes

Introduction

On 28 April 2026, the Supreme Court issued Supreme Court Regulation Number 1 of 2026 on Guidelines for the Settlement of Disputes Involving Banks in Liquidation and Post-Liquidation before the Commercial Court (“SCR 1/2026”), which took effect on 13 May 2026. This regulation establishes specific procedures and jurisdiction for the Commercial Court to examine and adjudicate disputes involving banks whose business licenses have been revoked, post-liquidation banks, and disputes relating to the guarantee of customer deposits.

SCR 1/2026 was enacted to maintain the stability of the national financial system by providing legal certainty for depositing customers. Previously, the judicial system did not have guidelines governing the settlement of disputes involving banks in liquidation or disputes concerning deposit guarantees. Therefore, the Supreme Court introduced SCR 1/2026 to uphold the principles of dispute resolution that are expeditious, simple, and low-cost by appointing commercial judges with specialized competence. This regulation aims to provide efficient dispute resolution for customers seeking to challenge decisions of the Indonesia Deposit Insurance Corporation (“IDIC”) relating to the rejection of deposit payments.

 

Key Provisions

Jurisdiction of the Commercial Court

According to Article 2, the Commercial Court has jurisdiction to adjudicate disputes involving banks in liquidation, post-liquidation banks, and disputes concerning deposit guarantees. Article 11 paragraphs (1) and (3) affirm that the plaintiff must register the lawsuit with the Commercial Court whose jurisdiction covers the location of the relevant bank’s head office. If one of the parties is domiciled outside the territory of the Unitary State of the Republic of Indonesia, Article 11 paragraph (4) stipulates that jurisdiction over the dispute shall rest with the Central Jakarta Commercial Court. In addition, Article 15 requires the panel of judges of the Commercial Court to complete the examination proceedings up to the reading of the judgment within a maximum period of 90 days from the date the panel receives the case, which may be extended for a maximum of 30 days by the Chief Justice of the Supreme Court through the Chief Judge of the Commercial Court.

Criteria for Non-Payable Deposits

Article 6 provides that the IDIC may reject the payment of claims and determine that a deposit constitutes a non-payable deposit. The IDIC shall issue such determination under the following conditions:

1. The customer’s deposit data is not recorded in the relevant bank; 
2. The customer is a party who has obtained improper benefits; and/or 
3. The customer is a party who caused the bank to become financially unsound. 

Time Limit for Objections and Deposit Guarantee Lawsuits

Article 8 regulates the time limits for the settlement of deposit guarantee disputes that must be observed by customers. If the IDIC determines that a customer’s deposit is non-payable, the customer may submit an objection to the IDIC no later than 180 days from the date the IDIC announces its decision. The IDIC is then required to respond to the objection within a maximum of 90 days. Furthermore, Article 8 paragraph (4) provides that a customer who rejects the final decision of the IDIC has a maximum period of 180 days from receipt of the notification to register a lawsuit with the Commercial Court.

Change in Deposit Status and Obligation to Return Funds

Article 9 provides that the IDIC may change the status of a deposit from payable to non-payable. The IDIC must instruct the customer to return the deposit funds that have already been received. Customers may file an objection within a period of 60 days. However, pursuant to Article 9 paragraph (5) and Article 10 paragraph (2), if the IDIC rejects the objection and the customer still refuses to voluntarily return the funds, the IDIC is entitled to file a lawsuit against the relevant customer through the Commercial Court.

Expedited Examination Procedure (Fast Track)

Article 24 regulates expedited examination proceedings conducted by a single judge. The court applies this mechanism to disputes with a claim value of up to IDR1,000,000,000.00 (one billion rupiah). To significantly reduce the duration of proceedings, Article 24 paragraph (4) prohibits disputing parties from submitting provisional claims, exceptions, counterclaims, interventions, replies, or rejoinders during the trial process. In addition, Article 29 paragraph (1) provides that the losing party may only submit an “objection” application to the Commercial Court no later than 7 days after the pronouncement of the judgment. Furthermore, Article 33 paragraph (3) confirms that the objection decision is final without any avenue for appeal, cassation, or judicial review.

 

Transitional Provisions

Article 42 regulates the status and handling of cases already in progress during the transitional implementation period of this regulation. If a plaintiff registered a dispute involving a bank in liquidation or a deposit guarantee dispute before the court prior to 13 May 2026, but the judges had not yet commenced examination of the case file, all procedural aspects of the proceedings shall immediately be subject to SCR 1/2026. Conversely, for cases whose files had already entered the examination stage before a panel of judges prior to 13 May 2026, the court shall continue to hear the case using the previous civil procedural law instruments until the case reaches a final and binding judgment.

 

Closing

SCR 1/2026 grants specific authority to the Commercial Court to handle disputes involving banks in liquidation and deposit guarantees in an expeditious, simple, and low-cost manner. This regulation ensures legal certainty through the establishment of deposit criteria by the IDIC, the obligation to complete proceedings within a maximum of 90 days, and the implementation of expedited examination procedures (fast track) by a single judge for disputes with a maximum value of IDR1 billion. The implementation of SCR 1/2026 is expected not only to provide efficient dispute resolution for depositing customers, but also to contribute to maintaining the stability of the national financial system.