How Indonesia protects consumers in the digital age through education and literacy

Amid rapid growth in the digital economy and the increasing delivery of public service through online channels, consumer protection has become an increasingly complex challenge in Indonesia. 

National Consumer Protection Agency (BPKN)’s Head of Communication and Education, Heru Sutadi, says the evolving digital era has brought great convenience, including easier access to financial services or online shopping but on the other hand, it also introduced risks such as scams, phishing, and artificial intelligence (AI)-based fraud.   

In 2024, BPKN received 1,708 public complaints, of which 1,085 (63.5 per cent) were complaints related to financial services and e-commerce.  

The nature of these complaints, according to Sutadi, demands a more adaptive and proactive approach to consumer protection.  

"Our vision is to make Indonesian consumers who are not only smart but also empowered. This is the main foundation for an inclusive and sustainable digital economy," he adds.  

BPKN is a government agency mandated to promote, advocate, and ensure consumer protection across the country.  

It focuses on addressing complaints from consumers who feel harmed or unfairly treated by businesses and providing recommendations to the central government on policies and regulations related to consumer protection.  

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Education and literacy at the forefront  

Leading the agency’s education and communication strategy, Sutadi emphasises the importance of equipping consumers with an understanding of their rights and obligations, including digital literacy.  

"Digital literacy is not just about knowing how to use apps but understanding how to protect themselves from evolving digital threats," Sutadi says, adding that consumers are also entitled to data security and fair treatment on digital platforms. 

To equip citizens with digital literacy, BPKN has organised the “Smart Consumer in the Digital Era" campaign aimed at various segments of society, ranging from students and housewives to active users of e-commerce and FinTech platforms.  

According to the Indonesian Internet Service Providers Association (APJII) 2024 report, more than 79 per cent of Indonesia's population connect to the internet, with the majority of users in the age range of 16-34 years.  

In addition to conducting online and in-person campaigns, BPKN also creates educational content on social media, as well as training programmes through webinars and e-learning. 

"We utilise platforms such as YouTube, Instagram, and TikTok to target the younger generation with content that is easy to understand and relevant," Sutadi notes. 

In conducting this campaign, BPKN established strategic partnerships with various institutions such as the Financial Services Authority, Bappenas, and e-commerce associations. This collaboration aims to expand the reach of education and ensure consumer protection becomes a common agenda.  

One proof of the success of this strategy is the increase in the value of the National Consumer Empowerment Index (CCI) by 2024.  

"The latest CCI reached 60.11, up 3.07 points from the previous year. This shows that our consumers are starting to move from the ‘capable’ to the ‘critical’ category... This means that they are more aware and more educated," he says.  

Strengthening consumer complaint system 

BPKN has been strengthening its consumer complaint system through its official portal, a WhatsApp channel, and the SP4N-LAPOR integrated channel, making it easier for consumers to submit complaints.

BPKN has also developed the BPKN 153 app that allows consumers to report disputes related to services provided by various service providers, such as e-commerce, automotive, property, and food and beverages.  

This quick complaint platform can be downloaded on Android and IoS-based smartphones.    

"We want to ensure that the complaint system can answer the needs of today's consumers who want a fast, easy, and transparent process," Sutadi says, adding that the platform also provides various information on consumer rights.  

Sutadi ensures that every complaint is followed up by BPKN after going through a verification process. BPKN then endeavours to resolve disputes between consumers and the complained party, either through mediation or recommendations made to the government to improve regulations. 

Advocating digital regulatory reform  

Facing increasingly complex threats of AI-based fraud on the horizon, Sutadi underlines that education alone is not enough.  

There are a number of regulations that need to be updated to make consumer protection stay relevant in the future.  

He highlights the importance of harmonisation between Consumer Protection Law, Electronic Information and Transaction Law, Personal Data Protection Law, AI Ethical Circular Letter, and Cyber Security Regulation. 

"There needs to be an affirmation of supervisory authority over digital services, including foreign platforms. In addition, we encourage the drafting of derivative regulations from the Personal Data Protection Law to be more operational, so that they can be directly applied in the real world," he notes. 

Sutadi stresses on the importance of risk management in the digital services system with security by design principle.