BPSK Facts: Law No. 8 of 1999 concerning Consumer Protection

We know that as consumers, we can have the rights to be protected by the law. The next question is about law and in-depth info regarding the law. Check them out here.


Consumer protection is a legal device created to protect and fulfill consumer rights. For example, sellers are required to show price tags as a notification to consumers. The example relates to the standard clause issued by the business actor as a producer.


Unfortunately, the inclusion of a standard clause is often burdensome to the consumers who, however, still have to accept the imbalance due to their need of the product or service. The weak position of the consumers is accommodated by the government with the establishment of Badan Penyelesaian Sengketa Konsumen Indonesia or known as BPSK (in English: the Consumer Dispute Settlement Agency) based on Law No. 8 of the year 1999, concerning Consumer Protection (UUPK).



The legal foundation of consumer protection in Indonesia

The Consumer Protection Law No. 8 of 1999 concerning Consumer Protection of the Republic of Indonesia explains that consumer rights include:

  • The right to have comfort, security, and safety in consuming goods and/or
  • The right to choose goods and/or services and obtain the goods and/or services according to the exchange rates, conditions, and warranty as promised.
  • The right to be treated or served appropriately, honestly, and fairly.
  • The right to get compensation or refund if the goods and/or services received are not in accordance with the agreement or not appropriate, etc.


In Indonesia, the legal basis for applying consumer protection is as follows:

  • Constitution of 1945, Article 5 paragraph (1), Article 21 paragraph (1), Article 27, and Article 33.
  • Law No. 8 of 1999 concerning Consumer Protection (State Gazette of the Republic of Indonesia of 1999 No. 42 Supplement to the State Gazette of the Republic of Indonesia No. 3821.
  • Law No. 5/year 1999 regarding Prohibition of Practices of Monopolistic and Unfair Business Competition.
  • Law No. 30/year 1999 on Arbitration and Other Alternative Dispute Resolutions.
  • Government Regulation No. 58 of 2001 concerning Fostering Supervision and Implementation of Consumer Protection.
  • Circular Letter of the Director General of Domestic Trade No. 235/DJPDN/VII/2001 concerning Handling of Consumer Complaints aimed at the entire Industry and trade service in the provinces, regencies, and cities.
  • Circular Letter of the Director General of Domestic Trade No. 795/DJPDN/SE/12/2005 concerning Consumer Complaint Service Guidelines.



The Consumer Protection Act also protects producers

Law No. 8 of 1999 concerning consumer protection should also protect businesses. This was stated by Chairman of the Indonesian Retail Entrepreneurs Association (Aprindo), Roy Mandey, reported by Kontan.co.id.


“Consumer protection along with the protection of business actors are basically the principle of gaining profit,” said Mandey. Therefore, by implementing the regulation on Consumer Protection properly, businesses will not be investigated by the authorized agency, such as Badan Penyelesaian Sengketa Konsumen Indonesia or the police.


Also, consumer protection regulations put forward the principle of justice. The principle, according to Mandey, will reduce the imbalance in product quality so that there is no bad competition. Hence, the Consumer Protection Law should also protect business actors.


Now, what about the consumer protection against online retails? The question was responded by the Acting Director-General of Consumer Protection and Trade Order (PKTN) Srie Agustina. Ms. Agustina said that the regulations regarding consumer protection against online sales are still being arranged. “In the near future, the rules for consumer protection in online trading will be the same as in conventional retail trading,” she added.


Therefore, when you have a dispute with the producer whose product or service you purchase, do not hesitate to contact Badan Penyelesaian Sengketa Konsumen Indonesia in the district or city you reside in.

Contact us:
Email: elson@smartlegal.id
Phone: +62822 1000 9872
Office: +6221 8067 4920