INDONESIA Trends and Developments Contributed by: Vovo Iswanto, Albert Boy Situmorang, Wisnu Wardhana and Ingrid Gratsya Zega, Assegaf Hamzah & Partners
• Risk mitigation, by allowing defective vehicles to be withdrawn from circulation promptly, thereby reducing the risk of accidents or consumer injury. • Regulatory accountability, by ensuring that even expedited recalls remain subject to monitoring and evaluation, thereby preserving transparency and compliance with statutory obligations. By balancing urgency with accountability, the frame - work under MOTR 53/2019 reinforces both consum - er protection and business responsibility, while also aligning Indonesia’s automotive recall regime with international best practices. Good faith and consumer protection Beyond compliance, a product recall serves as an expression of good faith by business actors. It demon - strates a commitment to minimising consumer losses and preventing further harm. By proactively recalling defective products, businesses reinforce consumer trust and uphold ethical standards in trade. Protecting business interests The importance of product recall extends to the pro - tection of business actors themselves. Failure to con - duct a recall exposes companies to significant legal risks, including: • Civil lawsuits filed by consumers; • Criminal reports submitted to local authorities; and • Administrative sanctions imposed by supervisory agencies. Thus, recall procedures function as a safeguard against litigation and reputational damage, making them an indispensable part of responsible business practice. 2026: the next phase of Indonesia’s mandatory halal product assurance Halal product assurance as a consumer protection framework Halal product assurance is an integral component of consumer protection in Indonesia. As home to the world’s largest Muslim population, the state has a responsibility to ensure that products consumed and used by the public comply with halal standards. Beyond religious compliance, the halal assurance
regime also operates as a mechanism to safeguard product safety and consumer rights by requiring busi - nesses to maintain control across the end-to-end halal supply chain. This includes controls over sourcing, production, storage, packaging, distribution, sale, and serving or presentation, as well as appropriate label - ling, to prevent contamination and consumer misin - formation. Phased implementation of mandatory Halal certification Under Law No 33 of 2014 on Halal Product Assurance and its implementing regulation, Government Regu - lation No 42 of 2024, products entering, circulating, or being traded in Indonesia are required to be halal- certified, with a halal certificate serving as evidence of a product’s halal status. This obligation is being implemented in stages based on product category. The first phase took effect on 18 October 2024, requir - ing halal certification for food and beverage products and slaughter-related products and services offered by large and medium-sized enterprises. The second phase will take effect on 18 October 2026, significant - ly expanding the scope of mandatory certification to include: • food and beverage products and slaughter-related products and services offered by micro and small enterprises as well as imported products; • traditional medicines, quasi-drugs, and health sup - plements; • cosmetics, chemical products, and genetically modified products; • clothing consumer goods, including apparel, head - gear, and accessories; • household consumer goods, including household health supplies, household equipment, items used for Islamic religious worship, stationery, and office supplies; • Class A (low-risk) medical devices; and • services related to the above products, including logistics. It is important to note that halal assurance covers the entire supply chain, not merely the end product. Accordingly, as mandated under the applicable regu - lations and reaffirmed by Indonesia’s Halal Product
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