What You Need to Know about Consumer Protection in Indonesia



Consumer protection can be defined as laws, authorities, or even organizations whose purpose is to protect and fight for the consumers’ rights. In this case, the law aims to ensure that in the marketplace, especially in a free market economy system, consumers can fulfill their rights such as to get accurate information and fair trade when they are buying goods or using services from the traders.


As a developed country that applies the system of free market economy, Indonesia takes consumer protection into account when creating the law to protect consumers’ rights. Regarding this, the following are five essential points that you need to know about consumer protection in Indonesia.


1.      The basic principles of consumer protection
In addition to the Constitution of 1945 which serves as the ground rule and the highest national constitution in Indonesia, the matter of consumers’ rights protection is based on the Law number 8 of 1999 about Consumer Protection. The law focuses on the protection of end consumers when they involve in products and services trades. While being supported by the local governments as well as authorized institutions, the law empowers consumers’ opinion to participate actively in claiming their rights in fair trade.

2.      The country’s consumer organization
The main authorized organization that takes action to protect consumers’ rights in Indonesia is the Indonesian Consumers Protection Foundation (Yayasan Lembaga Konsumen Indonesia or abbreviated as YLKI). It is the first and the largest institution in the country that deals with consumer right and protection. 

YLKI is responsible for some organizational activities which include providing data and information about consumers’ rights through public education as well as conducting research to update the information regularly. The organization is also a place for consumers to voice their complaints when they encounter an unfair trade.

3.      Consumer rights that are protected by the law
According to the law, the consumers have several rights when they involve in a trade. The most important right of the consumers is to receive safety and security when they are purchasing or consuming the products and services. Additionally, they have rights to be informed about the condition facts and warranty of the goods and services in a clear and correct way. Above all, in every trade, the consumers should be treated equally without any discrimination.

4.      The law’s policies approach to protect consumer rights
The consumer protection law adopts three policy approaches when dealing with consumers’ rights. Those approaches are regulation and guidance approach, social enforcement approach, and law enforcement approach. 

The first approach has a responsibility to create the norms, guidance, and some regulations in which the law is implemented. In the second approach, the law develops a communicative strategy to educate public about consumers’ right protection. Meanwhile, the third one, law enforcement approach, basically deals with the assistance and improvement of consumers’ services.



With the importance of fair trade, consumer protection is needed for the convenience of both traders and especially, the buyers. Therefore, the law, the authorized institution, and related elements which entangle between those two elements will continuously fight for consumer protection in Indonesia.



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