INDONESIA Trends and Developments Contributed by: Vovo Iswanto, Albert Boy Situmorang, Wisnu Wardhana and Ingrid Gratsya Zega, Assegaf Hamzah & Partners
then become liable for any resulting defects or damages. It is worth noting that the liability of businesses remains fault-based, meaning that businesses may be exempt from liability if they can prove that the harm, loss or injury was not caused by their fault. In relation to the above principle of businesses’ liability, the government is proposing to intro - duce a strict liability approach under the new Draft Consumer Protection Law. If enacted, this would allow consumers to claim compensation for damages caused by defective products or services, regardless of whether the manufac - turer, importer, or seller was at fault. This proposed change stems from growing pres - sure to strengthen consumer protection and reinforce the role of the Indonesian National Standards ( Standar Nasional Indonesia , SNI). However, it remains to be seen how stakehold - ers will respond to this proposed amendment, as discussions are still ongoing. Empowering Consumers, Elevating Standards: Indonesia’s National Consumer Protection Roadmap The government of Indonesia has recently issued Presidential Regulation No 49 of 2024 on the National Consumer Protection Strat - egy (STRANAS-PK). This regulation marks a renewed commitment to strengthening the country’s consumer protection ecosystem. This regulation updates and expands the scope of the 2017–2019 strategy, responding to new challenges and emerging digital market realities. Key goals include creating a more inclusive, fair, and integrated consumer protection sys - tem by co-ordinating efforts across ministries, local governments, businesses, and civil soci - ety. STRANAS-PK serves as a national road -
map to guide priority sectors, align policies, and promote the welfare and empowerment of Indonesian consumers. Further, general strate - gies to enhance business compliance include promoting fair business competition, improv - ing effective communication with consumers, and improving supervision and enforcement by respective ministries. Additionally, this regulation outlines key strate - gies and priority sectors for improving consumer protection and strengthening monitoring and law enforcement efforts across relevant sectors and authorities. The nine priority sectors, along with two sup - porting sectors, identified under STRANAS-PK are as follows. Food and medicine The strategy focuses on strengthening con - sumer protection through enhanced product safety, efficacy and quality standards, while also increasing consumer awareness and satis - faction. Key policy interventions target products such as medicines (including those derived from natural ingredients), cosmetics, health supple - ments, and processed foods including snacks sold in schools. Key concerns include coun - terfeit drugs, expired or unregistered products, misleading health claims, and the presence of harmful substances in food. E-commerce The strategy encourages greater accountabil - ity from marketplace and platforms, promotes consumer digital literacy, and calls for adaptive regulations. Key concerns include counterfeit goods, deceptive advertisements, return/refund difficulties, cybersecurity risks and the misuse of consumer data.
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