Consumer protection law still a dream

Consumer protection law still a dream

JAKARTA (JP): Business is business. These three words contain
a "philosophy" reflecting how harsh the business world is. For a
business to succeed, every means might be applicable, regardless
of the harm to other people. Business ethics are often cast aside
and consumers are exploited.

Expired products, merchandise of poor quality, misleading
advertisements, unfulfilled promises and poor services in various
fields are the most common complaints voiced by consumers.

Clearly, with chaotic business practices, consumers often end
up being the losers. To make things worse, Indonesia does not
have a consumer protection act yet.

The Indonesian Consumers Organization (YLKI), in cooperation
with experts on law and trade, formulated a bill on consumer
protection in 1981. Since then the organization has continuously
campaigned to have the bill ratified.

Abdul Rachman Saleh, former director of the Indonesian Legal
Aid Institute who took part in the drafting of the bill, hailed
YLKI for its initiative in the formulation of the bill.

"Everyone can propose a bill or send a letter to the State
Secretariat or the House of Representatives about the need to
make a certain legislation. But there is no guarantee that their
ideas will be accepted," Saleh said.

All bills which have been ratified by the House of
Representatives were drafted by the government. The House has the
full right to draft bills, but it has never used the prerogative.

YLKI executive A.Z. Nasution said that the consumer protection
bill drafted by YLKI is nowhere near acceptance.

"Indonesia is enhancing its economic development and I have
the impression that some people are afraid that the enactment of
a consumer protection law will hamper that development," he said.

Instead of obstructing the development, the law is expected to
boost the country's economy because it will improve the quality
of products, which is important in global trade competition.

Indonesia is behind some of the other Asian countries in
consumer's rights. Thailand enacted its Consumer Protection Act
in 1979, while South Korea introduced the act in 1986. Malaysia
is a step ahead as it has a minister who handles consumer issues.

Realizing the need to have a consumer protection act, the
Ministry of Trade asked the School of Law of the University of
Indonesia to prepare an academic draft on the subject. The draft,
attached with a proposed consumer protection bill, was completed
in 1993.

Bureaucracy, however, has hampered the process of producing
the law. The Trade Ministry could not endorse the proposed bill
or draft a new one without approval from the president.

A staff member of the legal bureau at the Trade Ministry, D.
Guritno, told The Jakarta Post that he had sent a letter to the
State Secretariat, asking for the president's approval on the
drafting of a consumer protection bill.

"Last year we asked the State Secretariat about the
president's answer but they said that the letter was missing. We
have sent them a new one, but so far we have not received any
answer," Guritno said.

Guritno is the secretary of a special team at the ministry
which is in charge of issues related to the consumer protection
bill. The team is headed by Bakir Hasan, Secretary General of the
Ministry of Trade.

Following economic development in the business world, however,
the Ministry of Trade is considering combining the subject of
business competition with consumer protection in the planned
bill.

The ministry has consulted the Ministry of Justice on the
plan. If the Ministry of Justice agrees, the Ministry of Trade
will send a proposal on the drafting of a bill on business
competition and consumer protection to the president, who will
later decide whether or not to accept it.

"I believe it is high time to have such a law, but I don't
know how long the process will be," Guritno said. (sim)