In 2017, the government introduced Regulation of the President No. 50 of 2017 (“Regulation 50/2017”) on the National Strategy on Consumer Protection (“2017 National Strategy”) which, as its title suggests, served as a reference for the establishment of various targets, policies, strategies and consumer protection priority sectors. The 2017 National Strategy was applicable during the 2017 - 2019 period.[1]

However, following the mandate set out under Regulation of the President No. 18 of 2020 on the 2020 - 2024 National Medium-Term Development Plan (“Regulation 18/2020”), the government has decided to introduce an updated national strategy on consumer protection (“2024 National Strategy”) through the issuance of Regulation of the President No. 49 of 2024, which bears the same title as Regulation 50/2017 (“Regulation 49/2024”) and which has been in force since 3 April 2024.[2] In addition to this new mandate, the introduction of the 2024 National Strategy also reflects various indicators relating to the implementation of the 2017 National Strategy that have yet to be fulfilled, as follows:[3]

Both the 2017 National Strategy and the 2024 National Strategy (collectively referred to as “National Strategy”) are comprehensively outlined under the appendices to their respective frameworks.[4] These appendices reveal that both Regulation 50/2017 and Regulation 49/2024 serve as sets of guidelines for use by relevant stakeholders (e.g. government ministries and/or agencies, business actors and the general public) during the implementation of consumer protection.[5] In addition, Regulation 49/2024 also states that the 2024 National Strategy will also serve the following additional purposes:[6]

1. Expediting of the organization of consumer protection within certain determined priority sectors;
2. Improvement of consumer capabilities in terms of optimum decision-making and the understanding of preferences and available options during transactions; and
3. Support for the strengthening of domestic demand.

Given the importance of the National Strategy, particularly regarding the establishment of future policies and regulatory frameworks on the implementation of consumer protection and compliance, this edition of Indonesian Legal Brief (ILB) offers an elaboration of the various provisions that are set out under the 2024 National Strategy, particularly as they relate to the following matters:

1. Pillars of the National Strategy: Identified Issues and Strategies; and
2. Priority and Supporting Sectors for Consumer Protection.

Pillars of the National Strategy: Identified Issues and Strategies

At its core, both Regulation 50/2017 and Regulation 49/2024 state that the National Strategy comprises three main pillars that relate to the strengthening of various functions of consumer protection. However, the 2024 National Strategy has now identified various strategic issues that specifically relate to each of these pillars, as follows:

In an attempt to resolve the above-outlined consumer protection issues, the 2024 National Strategy sets out a number of strategies that focus on resolving each of the identified issues for each National Strategy pillar. Said strategies break down as follows:

In addition to the above matters, the 2024 National Strategy also outlines the overall policy direction of consumer protection policies for 2024. In this regard, said policies are aiming to establish an inclusive and equal consumer protection ecosystem throughout the determined priority sectors. This new policy direction is summarized in the following flowchart:[12]

Priority and Supporting Sectors for Consumer Protection

The 2017 National Strategy previously set out a total of nine priority sectors for consumer protection. These sectors were determined based on the number of consumer reports and disputes that were submitted to the relevant consumer protection agencies, dispute resolution efforts and various structural issues within the relevant institutions.[13] While maintaining the majority of the determined priority sectors, the 2024 National Strategy has now redefined and expanded these priority sectors by incorporating the concept of supporting sectors. These revisions are summarized in the following table (newly added sectors are bolded):

Source : hukumonline.com