MAJOR CONSUMER PROTECTION LAW
ENFORCEMENT AND CONSUMER ISSUES
HIGHLIGHTS IN INDONESIA
ASEAN Seminar on Cooperative Approaches on Consumer Protection
Bangkok 27 – 29 August 2012
DIRECTORATE GENERAL OF STANDARDIZATION AND
1. Indonesia comprises of 17.508
islands and 80.000 km coast line. Let
alone the country has 4 land border
with Malaysia, Brunei, East Timor
and PNG, as well as having a close
proximity sea border with countries
namely Singapore and Malaysia. The
vast territorial area and long borders
will create more needs on financial
and human resource to support
current market surveillance system.
2. With the increase numbers of FTA and MRA between Indonesia with its trade
counterparts, the flow of imported goods also increase . This has become
another challenge on market surveillance area.
ACT NO. 8 YEAR 1999 RE CONSUMER PROTECTION
GOVERNMENT DECREE NO. 102 YEAR 2000 RE NATIONAL STANDARDIZATION
GOVERNMENT DECREE NO. 58 YEAR 2001 RE ESTABLISHMENT AND SUPERVISION
OF CONSUMER PROTECTION IMPLEMENTATION
MINISTER OF TRADE DECREE NO. 19/M-DAG/PER/5/2009 RE
REGISTRATION OF MANUAL BOOK AND AFTER SALE WARRANTY CARD IN INDONESIAN
LANGUAGE FOR TELEMATICS AND ELECTRONIC PRODUCTS
MINISTER OF TRADE DECREE NO. 20/M-DAG/PER/5/2009 RE
RULES AND PROCEDURES FOR SUPERVISION OF GOODS AND SERVICES
MINISTER OF TRADE DECREE NO. 14/M-DAG/PER/3/2007 RE STANDARDIZATION
ON SERVICES AND MARKET SURVEILANCE FOR INDONESIAN MANDATORY
STANDARD OF GOODS AND SERVICES
LAWS ON SURVEILLANCE
MINISTER OF TRADE DECREE NO. 22/M-DAG/PER/5/2010
RE AMENDMENT TO MINISTER OF TRADE DECREE NO. 62/M-DAG/PER/12/2009
RE LIABILITY OF LABELLING ON GOODS
In accordance with the Consumer Protection Law, the Government especially the
Ministry of Trade is assigned to coordinate the implementation of consumer protection in
Indonesia with regard to Development and Supervision.
General Policy :
• Making regulation oriented on protecting consumer and creating legal certainty
for the business
• Intensifies surveillance on traded goods and services comprises of 6 parameters
(standards, label, advertisement, trade practices, after sales services, standard
• Enhance consumer education in order to create smart and independent
consumer as well as actively participate in consumer protection activities, and
increasing consumer awareness on self rights and responsibilities
• Strengthening Consumer Protection Institutions. Indonesia has 3 consumer
protection institutions, namely: the National Consumer Protection Agency
(NCPA), NGO on Consumer Protection and Consumer Dispute Settlement Body
NGOs on Consumer Protection
Surveillance in Indonesia is implemented throught 3 different groups:
• Government: pre-market, post market and law enforcement
• Society/consumers : post market (results are reported to the
• NGOs on Consumer Protection : post market (may be together with
Integrated surveillance system is being conducted cohesively with relevant
ministries and institutions:
Processed Food products, cosmetics, medicine and medical devices
coordinated by the National Agency of Drugs and Food Control (NA-
Non food products coordinated by the Ministry of Trade
Legal Metrology coordinated by the Ministry of Trade
EVALUATION OF SURVEILLANCE RESULTS
(Reprimand Letter, Recall, Investigation)
Revision of rules and regulations
(ex : Label, Manual Book and after Sales Warranty Card)
CURRENT CONSUMER PROTECTION ISSUES
1. To protect consumers from purchasing goods that are not in accordance with
the sale and purchase agreement – the Case of Dental Unit.
2. Distribution of Goods which is not in accordance with Indonesia Mandatory
Standard – the Case of Rubber Hose for Gas Stove.
3. Goods that don’t comply with the Provisions on Manual and Warranty Card in
Indonesian languange – the Case of Printer.
4. Offering goods by force and untruth gift. – the Case of Home Appliance.
5. Goods that don’t meet the Provisions on labelling.
PURCHASING GOODS THAT ARE NOT IN
ACCORDANCE WITH THE AGREEMENT
• A dentist bought a Dental Unit produced by a European company offered at an
exhibition by its representative in Indonesia. When the dental unit was received,
there were some specifications that didn’t fit as agreed.
• First, the Ministry of Trade took an investigation by requesting information from
both the representative and consumer to clear the matter. However, due to
insufficient data, the Ministry of Trade directly send inquiries to the manufacturer
and then the manufacturer appointed its representative for Southeast Asia to
solve the case. Finally, the manufacturer agreed to provide compensation
DISTRIBUTION OF GOODS THAT NOT IN
ACCORDANCE WITH INDONESIAN MANDATORY
Rubber hose for gas stove is one of the products that must comply with
Indonesian Mandatory Standard. Through laboratorial test, some rubber hoses
have been proven not in accordance with the requirements of Indonesia
The Ministry of Trade has ordered the companies, both importers and producers,
to recall the products from the market to ensure health, safety and security for
GOODS THAT DON’T MEET THE OBLIGATION
PROVISIONS ON MANUAL AND WARRANTY CARD
• Particular printer products have been illegally imported and not provided with
manual and warranty card in Indonesian language.
• For these cases, the government has conducted enforcement actions, begin
with foreclosing and followed by investigation for judicial process
• To protect consumers from products that are not provided with manual and
warranty card in Indonesian language, the Ministry of Trade have taken actions
against several manufacturers and importers in form off Business License
revocation and criminal threats. Furthermore, according to the Minister of Trade
Decree No. 19 of 2009, both manufacturer and importer have to provide
minimum 6 authorized service centers in different cities.
OFFERING GOODS BY FORCE AND UNTRUTH GIFT
Goods are offered by forced and by luring with gifts that never intended to be
free gifts. In this case, the seller offering goods with inappropriate practices and
the consumers seem to have free gifts from the purchase. However, the
customers actually have to pay more than their real price.
Ministry of Trade has suspended this kind of business activity and facilitated the
refund for consumer’s lose.
GOODS THAT DON’T MEET THE PROVISIONS ON
Particular goods have to be labeled in Indonesian language. Some of those
were distributed without appropriate label or without any label.
In this case Ministry of Trade has given reprimand letter to businesses to
provide label in Indonesian language. Currently, the government of Indonesia is
in process to revise the decree to provide assurance to the consumer’s rights to
get the actual information of the products.