Consumer rights remain a dream

The Indonesian Consumers Organization (YLKI) celebrates its 24th anniversary today with a fresh commitment to keep up its aggressive stance in the interest of the people. Such a mission puts the organization in the hot seat because to some extent, it relies on a government subsidy. The Jakarta Post's team of reporters, Rita A. Widiadana, I. Christianto, Dwiatmanta, Wirasti Wiryono, Prapti Widinugraheni, Ida Indawati Khouw, Rachmat Effendi, and Mulkan Salmona, take a close look at the organization and consumers' problems in this story. More stories on Page 3 and Page 11.

JAKARTA (JP): A whole-day blackout last month in many parts of Java and Bali gives an important but bitter lesson that consumers are powerless.

Calls of queries, grumbles and protests flooded the state- owned electricity company PLN on that day but was anyone satisfied with the answers given by the people at the other end of the phone line?

Yet, even a modest answer was worth being thankful for because most of the callers were disconnected or left on hold.

A company like PLN, which has a monopoly, has no trouble fending off complaints without having to look at the principles of justice. It expressed no guilty feelings. And consumers' claims of losses running in the millions and billions of rupiah as the results of the blackout went unheeded.

The latest effort to seek justice is being made by the Indonesian Consumers Organization (YLKI), which received 100 complaints on the blackout. It recently filed a class action against PLN and people are waiting eagerly for the court's ruling.

YLKI's chairwoman, Tini Hadad, said that the class action was important although the organization faces an uphill challenge from the government.

"This is not a form of opposition to the government. We just intend to improve public awareness about consumer rights," she told the Post.

Can these this hard-fought efforts improve consumers' awareness about their rights?

Tini said it was extremely difficult to teach local consumers to be more critical about their rights to receive the best public services.

"Many consumers are used to accepting irregularities. They are not used to protesting," she told a seminar held recently in conjunction with YLKI's anniversary celebration.

Tini said it was still very hard to take legal action against a company due to the absence of a law on consumer protection.

The organization has struggled for the issuance of the law since l980, when a draft on consumer protection was first submitted. The House of Representatives welcomed the draft enthusiastically but no action was taken then.

In its efforts to improve consumers' awareness about their rights, YLKI has also cooperated with private sectors, which organize regular discussions where consumers take an active part. Several companies, including domestic airliner Merpati Nusantara, gave positive responses.

"Such discussion would also generate input we could use," Merpati spokesman, Tondo Widodo, said.

Improving the public's awareness about its rights as consumers and protecting them are the mission of YLKI.

Tini said YLKI is currently focusing on advocacy to raise consumers' awareness about their rights, its most significant move over the past five years. Previously, it was more involved in consumer information and education. In the next five years the YLKI is to face more sophisticated challenges, including the consumers' right to information, she said.

Good relations

Tini said the organization maintains good relations with the government, private sector and mass media. The organization is also actively involved with government agencies, including the Ministry of Health.

Between 15 percent and 20 percent of its budget comes from the government and private companies.

Tini said the organization, with a staff of 30 and a limited budget of about Rp 500 million (US$205,000) a year, uses the approach to work with, rather than fight against, the government because policymakers offer input concerning the public domain despite the presence of related consumer organizations, whether affiliated or not.

She said the organization's voice is small in the public domain, with the lower to middle classes lacking awareness about the organization, while its presence among the upper classes was met with indifference.

Henky Solaiman is among many consumers who claim they are reluctant to lodge a complaint with YLKI when unsatisfied with certain products or services.

"I have no time to file a complaint with the organization because it takes time and lengthy procedures," he told the Post.

According to Tini, consumer complaints come in daily. The organization has handled 158 cases over the past three months, with 70 percent of cases awarding consumers some compensation. But the actual compensation amounts for damages are not comparable to the amounts requested originally, she said.

"Businesses do not benefit from these practices and poor standards, which could prevent them from gaining access to overseas markets," she said.

Erna Witoelar, president of Consumers International (CI), underlined the need for a consumer protection law to increase consumer awareness.

She shared Tini's idea that local consumers' awareness is relatively lower than that of some neighboring countries.

Witoelar, who chaired YLKI from 1986 to 1989, said the government and private sectors have the responsibility to improve customers' awareness.

She pointed out that, in general, more wary consumers are needed to create a good economic system in a country, adding that more critical consumers are a good element to boost competitiveness in the production sector.

"I strongly believe that one reason for the lack of competitiveness of Indonesian products abroad is the lack of consumer protection and critical awareness in our country."