by Setyawati Fitrianggraeni and Tiara Amanda Putri
Overview
The Draft Law (RUU) on Consumer Protection represents a legal reform initiative to replace Law Number 8 of 1999, which has been in force for 27 years. The bill is formulated based on an Academic Paper prepared by the Legislative Drafting Center of the DPR RI’s Expertise Body. (1) Its urgency is reinforced by Constitutional Court Decision Number 235/PUU-XXIII/2025, which affirms that the existing regulatory framework is no longer adaptive to developments in information technology and cross-border trade.(2)
The Draft Law is grounded in Article 33 of the 1945 Constitution, which emphasizes equitable economic democracy and the state’s role in balancing the relationship between business actors and consumers to achieve public welfare. The urgency of reform is also reflected in Indonesia’s 2022 Consumer Empowerment Index (IKK), which remains at the “Capable” level (53.23), indicating that consumers are aware of their rights but are not yet sufficiently critical or proactive in asserting them within an increasingly complex digital ecosystem.(1)
This regulation expands the scope of regulated transactions to include digital goods and platform-based services that were previously not governed specifically.(1) It also adopts a substantive justice approach to ensure stronger protection for vulnerable consumer groups, such as the elderly and persons with disabilities. This reform also safeguards the sustainability of Micro, Small, and Medium Enterprises (MSMEs) by avoiding excessive compliance burdens.(3) By adopting international standards, such as those applied by the Federal Trade Commission, Indonesia seeks to foster a transparent and competitive market ecosystem.(4)
Key Highlights
- Strict Liability
This provision expands the definition of consumers to include legal entities as end users and introduces a compensation mechanism that does not require consumers to prove fault. It applies to individual and corporate consumers, goods producers, and distinguishes between commercial service providers and professional service providers. Under this mechanism, business actors are obligated to provide direct compensation for losses caused by defective products, while professional service providers retain the right to defend themselves in accordance with applicable professional standards.(1)
- Strengthening BPKN’s Independence and Institutional Restructuring of BPSK
This reform emphasizes reinforcing the independence of the Badan Perlindungan Konsumen Nasional (National Consumer Protection Agency/BPKN) and shifting the operational funding of the Badan Penyelesaian Sengketa Konsumen (Consumer Dispute Settlement Agency/BPSK) to the Anggaran Pendapatan dan Belanja Negara (State Budget/APBN).(2) The key actors involved are the Central Government as the budget provider, BPKN as an independent research-based body, and BPSK at the regency/municipal level. Section D of the Academic Paper of the Consumer Protection Bill outlines the need to strengthen BPKN’s institutional role and to shift BPSK’s operational funding to the APBN. These policy directions are reflected in the Draft Law, which further provides BPSK with authority to enforce decisions that are final and binding upon the parties.(1)
- Stricter Regulation of Standard Clauses and Online Dispute Resolution (ODR)
This provision prohibits the inclusion of exoneration clauses in standard agreements and mandates the establishment of an ODR mechanism. It applies to digital platform business actors, MSMEs, and consumers engaged in domestic and cross-border electronic transactions. The measure is implemented by declaring any standard clause that unilaterally shifts liability as null and void by law, alongside the creation of a national electronic complaint system managed by the Central Government to facilitate fast and cost-efficient mediation.(1)
References
- Naskah Akademik Rancangan Undang-Undang tentang Perubahan Atas Undang-Undang Nomor 8 Tahun 1999 tentang Perlindungan Konsumen.
- Tim Towa. MK Minta DPR dan Pemerintah Tinjau Ulang UU Perlindungan Konsumen yang sudah Berusia 27 Tahun. 2026. Available from: https://towa.co.id/postingan/mk-minta-dpr-dan-pemerintah-tinjau-ulang-uu-perlindungan-konsumen-yang-sudah-berusia-27-tahun
- Wandi. Revisi UU Perlindungan Konsumen Diminta Adaptif Digital dan Ramah UMKM. 2026. Available from: https://infopublik.id/kategori/nasional-politik-hukum/957405/revisi-uu-perlindungan-konsumen-diminta-adaptif-digital-dan-ramah-umkm
- Ndraha KRH, Purba M, Hutagalung JW, Butar EB, Anggusti M. Perbandingan Hukum E-Commerce Indonesia dengan Amerika Serikat. Journal of Accounting Law Communication and Technology. 2024 Dec 29;2(1):423–35. doi:10.57235/jalakotek.v2i1.4587
Publication Disclaimer:
This disclaimer applies to the publication of articles by Anggraeni and Partners. By accessing or reading any articles published by Anggraeni and Partners, you acknowledge and agree to the terms of this disclaimer:
- No Legal Advice: The articles published by Anggraeni and Partners are for informational purposes only and do not constitute legal advice. The information provided in the articles is not intended to create an attorney-client relationship between Anggraeni and Partners and the reader. The articles should not be relied upon as a substitute for seeking professional legal advice. For specific legal advice tailored to your individual circumstances, please consult a qualified attorney.
- Accuracy and Completeness: Anggraeni and Partners strives to ensure the accuracy and completeness of the information presented in the articles. However, we do not warrant or guarantee the accuracy, currency, or completeness of the information. Laws and legal interpretations may vary, and the information in the articles may not be applicable to your jurisdiction or specific situation. Therefore, Anggraeni and Partners disclaims any liability for any errors or omissions in the articles.
- No Endorsement: Any references or mentions of third-party organizations, products, services, or websites in the articles are for informational purposes only and do not constitute an endorsement or recommendation by Anggraeni and Partners. We do not assume responsibility for the accuracy, quality, or reliability of any thirdparty information or services mentioned in the articles.
- No Liability: Anggraeni and Partners, its partners, attorneys, employees, or affiliates shall not be liable for any direct, indirect, incidental, consequential, or special damages arising out of or in connection with the use of the articles or reliance on any information contained therein. This includes, but is not limited to, loss of data, loss of profits, or damages resulting from the use or inability to use the articles.
- No Attorney-Client Relationship: Reading or accessing the articles does not establish an attorney-client relationship between Anggraeni and Partners and the reader. The information provided in the articles is general in nature and may not be applicable to your specific legal situation. Any communication with Anggraeni and Partners through the articles or any contact form on the website does not create an attorney-client relationship or establish confidentiality.
- Intellectual Property: This publication is an original work of the author(s) that has not been previously published or submitted for publication elsewhere. All intellectual property rights in relation to this publication, including economic rights, are exclusively owned by Anggraeni and Partners (AP).
- Use of AI Tools: During the preparation of this work, the author(s) may use AI-assisted technologies for readability. After using this tool/service, the author(s) reviewed and edited the content as needed for the purposes of the publication. Any use of artificial intelligence tools, if applied, is limited to supporting purposes only, and the author remains fully responsible for the accuracy, integrity, and quality of the content.
By accessing or reading the articles, you acknowledge that you have read, understood, and agreed to this disclaimer. If you do not agree with any part of this disclaimer, please refrain from accessing or reading the articles published by Anggraeni and Partners.
For further information, please contact:
WWW.AP-LAWSOLUTION.COM
P: 6221. 7278 7678, 72795001
H: +62 811 8800 427
S.F. Anggraeni
Managing Partner
connect@ap-IawsoIution.net
Tiara Amanda Putri
Growth
