How BPSK decision was Formulated

There are two ways to resolve consumer protection issues regulated in Act Number 8 of 1999, namely settlement by the court and outside the court through the Consumer Dispute Settlement Agency (BPSK). In making decisions, BPSK uses the method of conciliation, mediation, or arbitration. To find out more about how BPSK decisions are formulated, here is a further explanation that you can see.

1.      Conciliation

Conciliation is the settlement of cases outside the court with BPSK acting as an intermediary. Through this way, the two disputing parties will be reunited, but the resolution is left to both parties while BPSK will be passive. The settlement will be purely on the initiative of the two parties concerned. BPSK's tasks in settlement through conciliation are to call the disputing parties, expert witnesses if needed, provide a place/forum, answer questions from consumers or producers regarding laws regarding consumer protection. Here is the settlement mechanism.

1.) The dispute resolution process concerns the form or amount of compensation fully handed over to the parties to the dispute.

2.) BPSK issues the results of the deliberations in the form of a BPSK decision.

2.      Mediation

In the mediation process, BPSK has the role of being an advisor to the parties to the dispute, but the settlement is still left to both parties. BPSK's scope of work in the mediation process is broader than conciliation, which involves calling on disputing parties and expert witnesses if needed, providing a place/forum, actively reconciling, and actively giving advice and recommendations based on consumer protection laws. The procedures for resolving through the mediation process are as follows.

1.)   The settlement process and agreement are fully handed over to both parties. Meanwhile, BPSK actively provides the necessary advice and instructions.

2.)   The results of the deliberations are issued in the form of a BPSK decision.

3.      Arbitration

In the settlement through arbitration, both parties submit all decisions to BPSK. In this case, BPSK acts as a determinant of disputes, so that the scope of BPSK's tasks is broader compared to the previous two ways. The stages of settlement through arbitration are as follows.

1.) The parties chose arbitrarily with BPSK to be the third arbitrator and chairman of the assembly.

2.) Each party explains what is in dispute.

3.) Dispute resolution process involving the form and amount of compensation fully submitted to BPSK.

4.) The BPSK decision is issued with full authority over dispute resolution.

Those are the explanation about how BPSK decisions are formulated. It should be noted that the decision on the results of mediation and conciliation was only to confirm the agreement that had previously been agreed by both parties. This decision is as much as possible taken through consensus agreement, but if it fails, a voting system will be used. 


The results of the settlement also do not contain administrative sanctions and are made in the form of a written agreement which is then signed by both parties and ratified by the assembly. Meanwhile, the arbitration award is the same as a civil court decision that includes a case, legal considerations, and administrative sanctions if any.

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