House of Representatives Pushes for Establishment of Regional Consumer Protection Agencies

The House of Representatives has begun preparing a Draft Bill on the Amendment to Law No. 8 of 1999 on Consumer Protection (“Law 8/1999”). Consumer protection agencies are proposed to be established at every level of government.

“We hope that this agency will be established at the central, provincial, and district levels. This way, when there are disputes or dissatisfaction with producers, consumers can immediately file complaints,” said Budi Sulistyono, a member of Commission VI of the House of Representatives of the Republic of Indonesia (DPR RI), to Hukumonline.

Currently, there is a National Consumer Protection Agency (Badan Perlindungan Konsumen Nasional - “BPKN”) at the central level, but it does not have the authority to resolve disputes. If there are complaints from consumers or business actors, the BPKN’s duty is to provide advice and recommendations to the government in order to formulate consumer protection policies.

Meanwhile, out-of-court settlements are handled by the Consumer Dispute Settlement Agency (Badan Penyelesaian Sengketa Konsumen - “BPSK”), which exists at the central and regional levels.

The new regional-level institution, Budi continued, will also be given the authority to resolve cases without the need for court proceedings, while still protecting consumers without harming business actors. “We are still discussing this in relation to the BPSK,” he said.