What is the Rights and Obligations of Entrepreneurs in Indonesia?

According to Article 1 paragraph (3) Law No. 8 Year 1999 concerning Consumer Protection (Consumer Protection Law), an Entrepreneur is every individual or business entity, either in form of legal entity or non-legal entity that is established and located or does business activities in the jurisdiction of Indonesia, either alone or together through agreement conducting business in various economic areas.

In business, Entrepreneurs also have rights and obligations to obey, which is regulated in Article 6 and Article 7 of Consumer Protection Law.

The rights of the entrepreneurs are:

a. to receive the payment in accordance with the sales agreement on the conditions and conversion value of the goods and/or services;

b. to obtain legal protection from the consumers acts of bad faith;

c. to conduct proper self-defense in the legal settlement of the consumers dispute;

d. to rehabilitate its good reputation if legally proven that the consumers damage is not caused by the goods and/or services purchase;

e. to obtain rights as regulated in the other provisions of the law.

The obligations of the entrepreneurs:

a. to act in good faith in conducting the business;

b. to provide correct, clear end honest information with regard to the condition and warranty of the goods and/or services and provide explanation on the use, repair and maintenance;

c. to treat and serve the consumers properly and honestly and non-discriminatively;

d. to guarantee the goods and/or services produced and/or traded based on the prevailing quality standard provisions of the goods and/or services;

e. to provide the opportunity to the consumers to test and/or try on certain goods and/or services and provide warranty and/or guarantee on the produced and/or traded goods;

f. to provide compensation, redress and/or substitution for the damages caused by the use, consumption and application of the goods and/or services;

g. to provide compensation, redress and/or substitution if the goods and/or services received or used do not accord with the agreement.


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  19 Mei 2019