How to cite:
Ellen Santoso, Gunardi Lie (2024) Dispute Resolution of Business Actors who Have Experienced
Bankruptcy Based on Consumer Protection Law, (06) 04,
Published by:
Ridwan Institute
Ellen Santoso, Gunardi Lie
Universitas Tarumanagara Indonesia
Industrial growth in Indonesia creates challenges for consumers when companies go
bankrupt, which often hampers the process of returning consumer rights. Legal
protection regulated in the Consumer Protection Law is important for creating a healthy
economy and empowering consumers. However, legal uncertainty in resolving disputes
between bankrupt business actors and consumers is still a concern. Therefore, this
journal aims to provide an in-depth understanding of a fair solution for both parties. The
type of research method in this writing is qualitative with document type. Qualitative
research is a type of research whose results are not based on statistics or other
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.
Keywords: Consumers, Bankruptcy, Disputes
Industrial development in Indonesia becomes a problem for consumers when the
company no longer complies with the rules (Waagstein, 2011). Today, many companies
are in bankruptcy. When a company goes bankrupt, it is managed by a receivership in
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
pISSN: 2723-4339 e-ISSN: 2548-1398
Vol. 6, No. 04, April 2024
Ellen Santoso, Gunardi Lie
1924 Syntax Idea, Vol. 6, No. 04, April 2024
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
bankruptcy is made by the receivership who takes care of the bankrupt assets, after
going through a verification process. This process is considered inefficient by bankrupt
consumers because they often do not understand the procedure for returning their rights
or even do not realize that the company has gone bankrupt (Cincinelli & Piatti, 2021).
To protect and empower consumers, awareness, knowledge, skills, and
independence are needed for consumers to protect themselves and encourage
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
people's welfare without harming consumers. To achieve this goal, a solid legal basis is
needed for the government and society to protect and empower consumers through
consumer coaching and education (Suhargon & Anggeraini, 2021).
Consumer protection law cannot stand alone, but must be integrated in an
economic system involving business actors. Changes in the complexity of the economic
system affect the legal structure in the relationship between producers and consumers.
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
Protection Act offers alternatives to out-of-court dispute resolution, such as through
conciliation, mediation, and arbitration.
A company's financial failure can lead to legal uncertainty related to dispute
resolution between bankrupt businesses and affected consumers (Hwang & Edwards,
2015). In this context, the Consumer Protection Law becomes the relevant legal
framework for resolving disputes between the two parties.
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
Consumer Protection Law
Syntax Idea, Vol. 6, No. 04, April 2024 1925
service. However, the legal process in resolving these disputes can be complicated and
confusing for both parties.
Research on dispute resolution between bankrupt businesses and consumers in
accordance with the Consumer Protection Law is important to understand the legal
framework governing the relationship between the two. In this context, legal analysis is
necessary to explore various aspects of dispute resolution, including relevant legal
procedures, the rights and obligations of both parties, and ethical considerations in
resolving disputes.
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
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
not based on statistics or other calculations. The qualitative research instrument is the
researcher himself. One of the data sources used is literature study, which is using
literature sources to obtain research data without doing fieldwork. Researchers use
qualitative descriptive methods with literature review sources by reviewing previous
Consumer dispute resolution process in the event of business actors who
experience bankruptcy based on consumer protection laws
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,
Consumer empowerment is done by increasing their awareness, skills, and
independence in protecting themselves, so that they can improve their dignity and avoid
negative impacts from the use of goods and services (Delgadillo, 2013). In addition, it is
also important to provide convenience in resolving consumer disputes arising from
losses in their wealth, safety, and health due to the use of consumer products. It is
important to remember that prior to the Consumer Protection Act, consumers generally
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
1926 Syntax Idea, Vol. 6, No. 04, April 2024
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
settlements can be carried out by peaceful means by the parties or through authorized
institutions such as the Consumer Dispute Settlement Agency (BPSK), using
conciliation, mediation, or arbitration mechanisms. Meanwhile, the settlement of
consumer disputes through court proceedings is also regulated.
The need for the Consumer Protection Law is to regulate the relationship between
consumers and business actors. Because consumers generally have a weaker position
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:
1) Political will to protect consumer interests.
2) A bureaucracy that consciously and voluntarily creates conditions that support honest
business in creating healthy competition.
3) Implementation of laws and regulations that include the protection of consumer
interests, such as the Health Law, the Goods Law, the Hygiene Law for Business, the
Law on Supervision of Goods Circulation, the Regulation on Compulsory Drug List,
and the Regulation on Licensing.
These regulations are expected not only to be followed, but also monitored,
fostered, and given strict and definite sanctions in case of violations related to the
requirements and operations of the producing company. The main contribution in terms
of public law to consumer protection is the ability to grant, supervise, foster, and revoke
licenses in accordance with their authority, based on the following provisions:
1) Violating the provisions of the Act.
2) Harm to the public interest or consumers.
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:
1) Creating a healthy business climate and relationship between business actors and
2) Developing non-governmental consumer protection agencies.
3) Improve the quality of resources and research and development activities in the field
of consumer protection.
4) In addition to coaching, government duties also include supervision of the
implementation of consumer protection and the application of laws and regulations.
This responsibility is also carried by the community and the Non-Community
Consumer Protection Agency, under the provisions in Article 30 of the Consumer
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
Consumer Protection Law
Syntax Idea, Vol. 6, No. 04, April 2024 1927
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
be disseminated to the wider community and reported to ministers and technical
ministers (Wijaya, 2017).
As an implementation of this provision, the government then issued Government
Regulation Number 58 of 2001 concerning Development and Supervision of Consumer
Protection Implementation. In addition, the government also established several
organizations to help deal with several consumer problems, such as the National
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
authority in managing consumer protection.
In a situation where a company goes bankrupt, it is important to note that a
decision of bankruptcy or not by a commercial court does not relieve the company of
liability towards consumers. Companies must still fulfill their obligations to consumers,
not ignore or put them as the last priority. Treatment of consumers should be a top
priority, considering that consumer rights have been regulated by Law No. 8 of 1999
concerning Consumer Protection. Article 16 of the Act mandates that companies must
not break promises to consumers (Fuady, 2014).
The process of responsibility between producers and consumers towards
producers falling bankrupt in realizing consumer protection
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
(NAINGGOLAN & SH, 2023).
In the case of bankruptcy of an airline business entity, the carrier's responsibility
for consumer losses for tickets that have been purchased is regulated in Law Number 1
of 2009 concerning Aviation and Ministerial Regulation Number 77 of 2011 concerning
the Responsibility of Air Transport Carriers. According to the regulation, the airline or
carrier will be responsible for reimbursing all ticket fees paid by the consumer or
prospective passenger (Sjahdeini, 2016).
Ellen Santoso, Gunardi Lie
1928 Syntax Idea, Vol. 6, No. 04, April 2024
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
consumer dispute resolution bodies or by filing a lawsuit with the judicial body at the
consumer's place of residence. The lawsuit can be in the form of a small claim, which
provides legal access for consumers with small claims, or through legal standing for
LPSK, as well as through class actions :
1) A small lawsuit is a type of lawsuit that can be filed by a consumer, even if the value
of the claim is very small economically. Article 46 paragraph (1) letter (a) of the
Consumer Protection Law (UUPK) stipulates that aggrieved consumers or heirs can
file a lawsuit for violations of business actors. Settlement of consumer disputes with
a very small value is recommended to be done through a small claim court, which is
a flash court with a single judge, simple procedures, without the need to use lawyers,
and very affordable case costs. Small claim courts have developed in both Common
Law and Civil Law countries, both in developed countries and developing countries
in various parts of the world.
2) Legal Standing for LPKSM (Non-Community Consumer Protection Agency): UUPK
also recognizes certain institutions that have legal standing to carry out legal
proceedings. Non-governmental consumer protection agencies are non-governmental
organizations registered and recognized by the government, which are engaged in
dealing with consumer protection.
Class Action: A class action is a lawsuit filed by one or more people as a class
representative through litigation (Lahav, 2012). According to Gregory quoted by Erman
Rajagukguk, class action is a legal effort made by some people who feel aggrieved by a
product, to claim damages. Although there is no written provision in the law regarding
class actions, the practice of class actions has been accepted by the courts for
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,
while providing convenience in resolving disputes that arise.
Law Number 8 of 1999 stipulates two methods of resolving consumer disputes,
namely outside the court and through court proceedings. Meanwhile, consumer
protection also requires an active role from the government in aspects of public law.
These measures include guidance by the government to create a healthy business
climate and supervision of the implementation of consumer protection laws.
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 Law
Syntax Idea, Vol. 6, No. 04, April 2024 1929
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
claims, legal standing for consumer protection agencies, and class actions.
Ultimately, this entire process illustrates the efforts made to ensure effective
protection for consumers, strengthen their rights, and provide fair enforcement against
businesses that violate their obligations.
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Ellen Santoso, Gunardi Lie (2024)
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Syntax Idea
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