How to cite:

Ellen Santoso, Gunardi Lie (2024) Dispute Resolution of Business Actors who Have Experienced

Bankruptcy Based on Consumer Protection Law, (06) 04, https://doi.org/10.36418/syntax-

idea.v3i6.1227

E-ISSN:

2684-883X

Published by:

Ridwan Institute

Universitas Tarumanagara Indonesia

Email : [email protected], [email protected]

Industrial growth in Indonesia creates challenges for consumers when companies go

bankrupt, which often hampers the process of returning consumer rights. Legal

calculations. The instrument of qualitative research is the researcher himself. The results

of this research are that the resolution of consumer disputes when a company goes

bankrupt is based on the Consumer Protection Law, strengthening legal protection for

consumers. Steps include consumer empowerment and efficient dispute resolution, both

outside the courts and through court processes, with the government playing an active

role in guidance and supervision. Even though the company goes bankrupt, consumers

still have the right to obtain compensation according to the law, with options such as

small claims claims, legal standing for consumer protection agencies, and class actions.

This all aims to ensure effective consumer protection and fair law enforcement against

business actors who violate their obligations.

accordance with bankruptcy law, and its owners temporarily have no rights to its

property. This causes confusion among consumers, as many of them do not understand

Ellen Santoso, Gunardi Lie

the issue of insolvency, which is often not explained by the company or its agents at the

beginning of the transaction (Kasabov, 2015). Payment to consumers affected by

responsible business behavior. In addition, state intervention through the legal

protection system for consumers is also necessary. Based on these considerations, legal

instruments are needed that create a balance between consumer protection and business

actors, so as to create a healthy economy. Law Number 8 of 1999 concerning Consumer

Protection is one of the laws that aims to create this legal framework (Asyhadie, 2011).

Law Number 8 of 1999 concerning Consumer Protection affirms that national

development aims to create a just and prosperous society materially and spiritually, in

the context of economic democracy rooted in Pancasila and the 1945 Constitution. In

this case, national economic growth must support the development of the business

world in order to produce various goods and services with technology that improves

This change began with a paradigm shift in the relationship from "caveat emptor"

(cautious consumers) to "caveat venditor" (producers responsible for protecting

consumers). Consumer protection has put consumers in a weaker position in their

interactions with businesses, especially because of standard agreements that often

benefit from business actors.

The Consumer Protection Law basically aims to create equality between

consumers and business actors. However, the concept of consumer protection as a

necessity must continue to be socialized to build fair and equal relationships between

consumers and business actors, as well as to balance profit-oriented business activities

with consumer interests. To address the complexity of litigation, the Consumer

When a company faces bankruptcy, consumers are often the most affected. They

may have claims against the company, such as warranty claims, refunds, or after-sales

Dispute Resolution of Business Actors who Have Experienced Bankruptcy Based on

service. However, the legal process in resolving these disputes can be complicated and

confusing for both parties.

Through a deep understanding of the legal mechanisms related to dispute

resolution of bankrupt business actors and consumers, it is hoped that a fair and

sustainable solution can be found for all parties involved. As such, the journal aims to

present important contributions in the understanding of dispute resolution in this area, as

well as provide practical guidance for legal practitioners, academics, and other

stakeholders

RESEARCH METHODS

The type of research method in this writing is qualitative with the type of

document (Sugiyono, 2017). Qualitative research is a type of research whose results are

The Law on Consumer Protection underscores the true meaning of "consumer

protection" as any measure that ensures legal certainty to protect consumers. This legal

clarity includes enhancing the dignity of consumers by providing access to information

about goods and services, as well as promoting honest and responsible business

conduct. This includes all efforts based on law to empower consumers to choose the

goods and services they need and protect their rights if harmed by businesses (Vladeck,

2015).

had a weak position in terms of economy, education, and bargaining. Therefore, laws

are needed that protect the interests of consumers that have been neglected.

Ellen Santoso, Gunardi Lie

Law Number 8 of 1999 divides consumer dispute resolution into two parts,

namely out-of-court settlement and settlement through court proceedings. Out-of-court

compared to business actors, the protection of consumer rights is very important.

In an effort to improve consumer protection, the government has an important role

in aspects of public law. The role can be realized through several steps:

The authority of guidance by the government is regulated in Article 29 of the

Consumer Protection Law. The article explains that the government is responsible for

guidance in the implementation of consumer protection, which guarantees the rights of

consumers and business actors and the implementation of their obligations. This

responsibility is carried out by the relevant Minister and/or technical minister, with the

aim of:

Protection Law (Howells & Weatherill, 2017). The government carries out this

supervision through relevant ministers and/or technical ministers. Meanwhile,

Dispute Resolution of Business Actors who Have Experienced Bankruptcy Based on

supervision by the public and Non-Community Consumer Protection Institutions is

carried out on goods and / or services circulating in the market, the results of which can

Consumer Protection Agency (BPKN) and the Consumer Dispute Settlement Agency

(BPSK). In supervising the behavior of business actors in running their businesses, the

government is assisted by the community and the Non-Community Consumer

Protection Agency (LPKSM).

LPKSM and BPKN have an important role in facilitating consumers to get justice.

Both work simultaneously to protect consumers from different directions. LPKSM acts

as a strong bottom force and has become widespread in society. In addition, LPKSM is

also able to represent and fight for consumer aspirations representatively. Prior to the

Consumer Protection Law, this role was carried out by the Indonesian Consumer

Foundation (YLKI). Meanwhile, BPKN acts as an upper power that has special

concerning Consumer Protection. Article 16 of the Act mandates that companies must

not break promises to consumers (Fuady, 2014).

In terms of business actors' responsibility to consumers, the company must pay

compensation in accordance with a written agreement that has been agreed by both

parties. Legal consequences if companies or business actors fail to pay claims from

consumers can be in the form of administrative sanctions and/or criminal sanctions.

These measures are taken to ensure consumer protection is properly realized

prospective passenger (Sjahdeini, 2016).

Ellen Santoso, Gunardi Lie

If such liability is not fulfilled by the airline, the consumer has the right to pursue

legal remedies to obtain such liability. Such legal remedies can be made through

class actions, the practice of class actions has been accepted by the courts for

examination.

CONCLUSION

The process of resolving consumer disputes in the case of business actors who

experience bankruptcy is based on the Consumer Protection Law which emphasizes the

need for comprehensive legal protection for consumers. These measures aim to enhance

the dignity of consumers through access to clear information about products and

services, as well as ensuring honest and responsible business conduct. Consumer

empowerment is done by increasing their awareness and skills in protecting themselves,

In the event of the insolvency of a company, it is important to note that the

company remains liable to consumers, in accordance with the provisions of the

Dispute Resolution of Business Actors who Have Experienced Bankruptcy Based on

Consumer Protection Act. Consumers have the right to recover if the company fails to

fulfill its obligations. Legal proceedings that can be taken by consumers include small

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