Intermediate Consumer Regulations in the Revision of the Consumer Protection Law

The National Consumer Protection Agency (Badan Perlindungan Konsumen Nasional– “ BPKN ”) has proposed the need for regulations concerning Intermediate Consumers in the Amendment to Law No. 8 of 1999 (“ UU 8/1999 ”) on Consumer Protection (“ Consumer Protection Draft Bill ”). Member of the Communication and Education Commission of BPKN, Malona Sri Repelita Manurung, explained that this regulation provides clear and fair legal protection certainty within the trade ecosystem.

“BPKN considers it necessary to regulate intermediate consumers. Consumer protection so far has mostly focused on end consumers, namely individuals or households who purchase goods and services for personal consumption,” she said.

Malona explained that intermediate consumers are individuals or business entities who purchase and/or use goods not for consumption, but to be further processed or used in business activities.

According to her, the urgency of regulating intermediate consumers includes: 1) avoiding legal protection imbalances, 2) ensuring legal certainty in business transactions, 3) preventing the abuse of dominant positions by large-scale business actors, and 4) enhancing the competitiveness of Micro-, Small-, and Medium-scale Enterprises within the business ecosystem.