The government, by means of Presidential Decree No. 18 of 2010 (Presidential Decree), has established 9 (nine) new Consumer Dispute Settlement Bodies (Badan Penyelesaian Sengketa Konsumen / BPSK) in the following cities and regencies of Indonesia: Kota Serang, Kota Kendari, Kota Bukittinggi, Kota Singkawang, Kota Pontianak, Kabupaten Kotawaringin Barat, Kabupaten Padang Pariaman, Kabupaten Karawang, and Kabupaten Batu Bara. This follows the last round of BPSK establishments in 2008.
The establishment of BPSKs in Indonesia’s regions is aimed to facilitate, accelerate, and provide legal certainty for consumers in asserting their civil rights against business entities. Currently, the government has established more than 30 BPSKs, located across a number of areas in Indonesia.
Generally, a BPSK is a non-structural institution which serves to settle consumer disputes outside of the court system. Their establishment is mandated by Article 49 of Law No. 8 of 1999 on Consumer Protection (Consumer Protection Law). A BPSK has the following duties and authorities, as per Article 52 of the Consumer Protection Law:
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to handle and settle consumer disputes through mediation, arbitration or conciliation;
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to provide consultation in consumer protection;
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to supervise the use of standard clauses;
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to report to an investigator in the event there is a violation of the provisions of the Consumer Protection Law; and
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to impose administrative sanctions on businesses who have violated the Consumer Protection Law.
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Furthermore, in Article 2, the Presidential Decree reaffirms that every deprived consumer, or their heirs, can file a claim against a business through the BPSK local, or nearest, to the domicile of the consumer.
The Presidential Decree has been in force since 27 August 2010.
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