YLKI sees class action as tool to protect consumers

YLKI sees class action as tool to protect consumers

By I. Christianto and Wirasti Wiryono

JAKARTA (JP): Win or lose, the Rp 500 billion (US$210 million)
lawsuit filed last month against the state-owned electricity
monopoly PLN has set a precedent in Indonesian consumer advocacy.

Other lawsuits will likely follow as more and more consumers
fight for their rights against the mighty producers.

The Indonesian Consumers Organization (YLKI), which filed the
lawsuit on behalf of one million electricity users, believes that
class action is one measure of enforcing consumers' rights and of
punishing those who violated these rights.

YLKI, which marks its 24th anniversary today, sees class
action as a kind of participation to improve people's awareness
of their rights as consumers, YLKI chairperson Tini Hadad said.

And it saves time and money, she adds.

Tini has no illusions about the prospect of winning the
lawsuit or of future class actions for that matter, given the
government's aversion to lawsuits.

The government has dismissed class actions as improper for
Indonesia, she said.

"During the drafting of a bill on consumer protection,
government representatives disputed the clause on class actions.
They said class action is not proper in Indonesia yet."

"In my opinion, they should just leave the clause in and let
the House of Representatives debate it," she said.

YLKI has filed the lawsuit against PLN with the South Jakarta
District Court for the massive power blackout that hit Jakarta
and most of Java and Bali last month.

The organization is claiming Rp 650,000 in damages caused by
the outage to its office, and it is also seeking Rp 500,000
damages for every PLN consumer affected. YLKI received about 100
complaints but one estimate is that at least one million
consumers were hit by the eight-hour blackout.

The government stated the power cut occurred while PLN was
conducting some repair work at the Gandul transmission and load-
control in Cinere, South Jakarta.

PLN has contested the lawsuit and the court has yet to rule
whether YLKI has a case or not.

"We shall see," Tini said when asked about her chances.

The massive class action is another step in YLKI's 24-year
struggle to protect consumers in Indonesia.

The group was founded on May 11, 1973, after it took part in a
trade exhibition at the Jakarta Fairground to encourage
Indonesians to buy local products.

The practice of opening booths at various trade and consumer
goods exhibitions continues.

This simple beginning is reflected in the modest office for
YLKI's 30 staff on Jl. Pancoran Barat, South Jakarta, and a
modest budget of Rp 500 million a year.

However, this has not prevented YLKI from speaking out against
the government and against giant corporations, even if up to 20
percent of its budget comes from the government and some from
private companies.

Other financial sponsors include the U.S. Agency for
International Development and the Asia Foundation.

YLKI's less publicized tasks include analyzing products,
strengthening networks with local consumer groups in the regions
and improving cooperation with the government. Its product
analyses focus on foodstuffs, beverages, vitamins and fast foods.

YLKI uses laboratories owned by state or private research
agencies.

The organization has also been active in pushing for consumer
protection legislation. In 1981, it produced the draft of a bill
which has since been used as a reference for discussion.

The bill never reached the House of Representatives because
the Ministry of Industry and Trade had not given its support. The
ministry's director of trade, Ismail, said the bill would likely
be presented to the House in late 1998.

Consumer advocacy, with the goal of increasing the level of
awareness among consumers, remains the YLKI's most difficult
task, especially given the current public attitude.

Despite its outspokenness, the organization has not gained the
wide acceptance it feels it deserves. People in the lower to
middle classes are not aware of YLKI's existence and the upper
classes tend to be indifferent, Tini said.

She suggested that manufacturers also get their acts together
and stop taking consumers for granted. This is for their own
good. "Businesses do not benefit from such practices and poor
standards, which could prevent them from gaining access to
overseas markets."

Many giant corporations, when asked about YLKI's role,
emphasized dialogs as a way of improving their products or
services. Most, however, prefer to deal with consumers directly
rather than make use of the YLKI and its extensive network.

Merpati Nusantara Airlines public relations manager, Tondo
Widodo, and director of the telecommunications firm PT
Telekomindo, Rudiantara, say dialogs cut both ways: they
strengthen consumers' awareness of their rights and at the same
time, they provide valuable input for the firms.

"Companies could finance the meetings," Rudi said.

Tondo said Merpati never uses YLKI to deal with cases or
complaints directed at his company.

Sempati Air spokeswoman Rima Novianti said the airline had
never used YLKI as a medium to deal with public complaints.

"We normally deal with complaints directly," she said.

PT Sahid Jaya chief commissioner Sukamdani S. Gitosardjono
said his company tries to extend appropriate services to the
public and does not see any YLKI role in this.

State-owned PT Telkom said the company has cooperated with
YLKI on various projects dealing with consumers.

Telkom vice president for external relations, A.M. Sampurna,
said that in compensating subscribers whose phones were affected
by disruptions for over two weeks, Telkom always sends out
information to YLKI.

He said YLKI plays a very important role both for companies
and consumers.