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The Failure of the Court to Protect Consumers: A Review of Consumer Dispute Resolution in Indonesia

M. Syamsudin ()
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M. Syamsudin: Universitas Islam Indonesia (UII)

Journal of Consumer Policy, 2021, vol. 44, issue 1, No 6, 117-130

Abstract: Abstract Indonesia needs strong measures to protect its consumers, which leads to the creation of the Consumer Dispute Settlement Agency (BPSK) as an arbiter to settle disputes between consumers and businesses efficiently. The Indonesian Supreme Court (MARI) has set aside an alarming number of BPSK arbitral awards, putting the entire system in jeopardy. The aims of this study are to examine the empirical data on MARI’s decisions in setting aside arbitral awards and analyse their decision-making process. This research shows how MARI has been interpreting the statue promulgating the BPSK very narrowly. The result of MARI’s interpretation of the law has deep implications for consumer protection in Indonesia, namely that the public trust in the enforcement of Consumer Protection Law by BPSK has been severely diminishing, leaving consumers without meaningful access to justice or protection of their rights.

Keywords: Arbitration decision; Consumer dispute resolution; Consumer protection (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s10603-020-09470-0

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Journal of Consumer Policy is currently edited by Hans Micklitz, John Thøgersen, Lucia A. Reisch, Alan Mathios and Christian Twigg-Flesner

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