Mon, 05 Apr 1999

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)