10
A G U I D E T O C O M P L I A N C E I N I N D O N E S I A
Consumer Protection, Product
Certification and Labeling
CONSUMER PROTECTION
In Indonesia, the protection of consumers is governed
by Law number 8 of 1999 concerning Consumer
Protection (Law 8 of 1999). This Law deals with
the rights and obligations between consumers and
companies, prohibitions imposed on the company,
provisions on standard clauses, dispute settlement
and relevant consumer protection agencies. The main
objective of Law 8 is to create a consumer protection
system to ensure legal security for consumers,
information transparency and access to information.
Furthermore, Law 8 of 1999 also intends to improve
awareness of consumers and companies on consumer
protection, to encourage companies to a more honest
and responsible behavior and to improve the quality
of goods and/or services. In addition to Law 8 of 1999,
Law number 11 of 2008 on Electronic Information and
Transaction (Law 11 of 2008) and its implementation
regulation, governmental regulation 82 of 2012
concerning Electronic System and Transaction
Operation (Reg. 82 of 2012) provide some provisions
on consumer protection with regard to e-commerce.
a. Obligations of Companies
Chapter 3 of Law 8 of 1999 sets out the obligations
for companies:
Companies are obliged to do business in good faith,
to provide correct, clear and honest information
with regards to the condition and warranty of the
goods and/or services and to guarantee the goods
and/or services produced and/or traded are based
on the prevailing quality standard provision of the
goods and/or services. Moreover, the company has
to provide the opportunity to test certain goods
and/or products and he has to pay compensation,
redress and/or substitution for damages caused by
the use, consumption and application of the goods
and/or services or if the goods and/or services
received are not as agreed upon.
b. Prohibitions of the Company
Chapter 4 of Law 8 of 1999 stipulates several
prohibited actions for the companies. Among
others, these prohibited actions include the
following:
