Consumers still have to wait for protection

Consumers still have to wait for protection

JAKARTA (JP): Consumers have finally been given protection
against bad goods and services, but due to the country's
prolonged economic uncertainty, they may have to wait a while
longer before they can enjoy it, a consumer advocate said on
Saturday.

Purchasing power has dropped, and companies are not producing
as much, the Indonesian Consumers Foundation's chairwoman, Tini
Hadad, said.

However, Tini said the government could soon take legal
measures to protect consumers and to encourage companies to
produce quality products as soon as President B.J. Habibie
ratifies the bill on consumer protection.

The bill was endorsed last week by the House of
Representatives.

"We need a transitional period to socialize the new law, but
the government can start this gradually, at least during the
ongoing economic hardship," Tini told The Jakarta Post.

Citing tomato sauce, Tini said the government should require
producers to openly inform consumers of the ingredients in their
products because most tomato sauces, especially cheap ones, are
not made purely from tomatoes.

"As tomatoes are expensive, producers often substitute them
with papaya or other substitutes. But with the new law, they can
no longer cheat people," Tini said.

Tini said her foundation has submitted several bills to the
government over the last 18 years but their proposals remained
unheard.

The new law secures consumer rights, including the right to
enjoy security and comfort when consuming or using products and
services at fair prices, and the right to get honest information
on products and services.

The law also forbids the use of misleading advertisements to
promote products and services. A violator can face a maximum
penalty of five years imprisonment and a maximum fine of Rp 2
billion (US$250,000).

"President Soeharto's government emphasized economic growth,
and the protection of his cronies, although some technical
ministries actually showed interest in our idea," Tini said about
the late endorsement of the bill.

Tini recalled that then minister of industry and trade, Tunky
Ariwibowo, had agreed to submit a consumer protection bill to the
House in 1997.

"However the House said its schedule was too full," said Tini.

After B.J. Habibie replaced Soeharto in May, the House paid
attention to the foundation's draft bill, she said.

She said officials at the State Secretariat had rejected
several sensitive issues for producers, including class action
against unsatisfactory producers.

The current Cabinet secretary, Erman Rajagukguk, agreed to
include the tough issues in the draft.

"The law will not only protect consumers but also producers.
By selling quality products, they will be able to enter a
lucrative and highly demanding global market," Tini said. (prb)