by: ADVOCATE RIKHARDUS IKUN, S.H., M.H., C.MSP., C.NSP., C.LFS., C.CPr. LAW FIRM JAMES RICHARD AND PARTNERS ⚖️


I. Legal Issue

What legal protection is available to consumers who suffer losses because goods and/or services do not conform to the agreement, the information or advertisements provided, or the applicable standards?

II. Legal Basis

Consumer protection in Indonesia is primarily governed by Law No. 8 of 1999 on Consumer Protection (“Consumer Protection Law” or “UUPK”).

Under Article 4 of the UUPK, consumers are entitled, among other things, to comfort, security, and safety in using goods and/or services; to receive accurate, clear, and honest information; and to obtain compensation, damages, and/or replacement when the goods and/or services received do not conform to the agreement or are otherwise not as they should be.

Conversely, Article 7 of the UUPK requires business actors to act in good faith in conducting their business, provide accurate, clear, and honest information concerning the condition and warranties of goods and/or services, and provide compensation or replacement for losses arising from the use of the goods and/or services they trade.

In addition:

  1. Article 8 of the UUPK prohibits business actors from trading goods and/or services that do not conform to applicable standards, conditions, warranties, or representations.
  2. Articles 10 and 17 of the UUPK prohibit the provision of misleading information or advertisements in offering or promoting goods and/or services.
  3. Article 19 of the UUPK governs business actors’ liability to compensate for damage, pollution, and/or consumer losses arising from the goods and/or services they trade.
  4. Article 45 of the UUPK allows disputes to be resolved through the courts or out of court, based on the parties’ voluntary choice.
  5. Article 23 of the UUPK allows a consumer to bring a claim before a consumer dispute resolution body or a court if a business actor refuses or fails to satisfy the consumer’s claim for compensation.
  6. Article 28 of the UUPK governs proof of fault in certain compensation claims referred to in Articles 19, 22, and 23 of the UUPK. Its application depends on the type of claim and the facts of the case.

III. Legal Opinion

If a consumer suffers losses because the goods and/or services received do not conform to the agreement, are defective, fail to meet applicable standards, or were offered using misleading information or advertising, the consumer may, in principle, seek to hold the business actor liable under the UUPK and other relevant laws and regulations.

Compensation may take the form of a refund, replacement with goods and/or services of the same or equivalent value, medical treatment, and/or compensation in accordance with applicable laws and regulations. The type of compensation that may be claimed depends on the nature of the loss, the available evidence, and the legal relationship between the consumer and the business actor.

Disputes may be resolved through:

  1. A complaint and request for resolution submitted directly to the business actor, preferably in writing and setting out the loss and the remedy sought;
  2. Resolution through the Consumer Dispute Settlement Agency (BPSK), if the dispute falls within the BPSK’s jurisdiction;
  3. A civil lawsuit before a court to seek the fulfillment of rights and/or compensation; and/or
  4. A report to law enforcement authorities, if the facts and evidence indicate a suspected criminal offense. A consumer dispute does not, by itself, constitute a criminal offense.

Before deciding on a legal course of action, consumers should collect and preserve relevant evidence, including proof of purchase, agreements, receipts or invoices, communications with the business actor, advertisements or offers, photographs or inspection results relating to the goods and/or services, and evidence of the losses suffered. Specific obligations or standards for particular sectors may also be governed by sector-specific laws and regulations.

IV. Conclusion

The UUPK provides legal protection to consumers who suffer losses because goods and/or services do not conform to the agreement, the information or advertisements provided, or applicable standards. Consumers may seek compensation and pursue resolution through the business actor, the BPSK, or the courts. A criminal report may be considered if the facts and evidence indicate a suspected criminal offense.

The appropriate claim and dispute-resolution forum should be determined in light of the facts of the case, the type of loss, the legal relationship between the parties, applicable laws and regulations, and the available evidence.