Compliance in Indonesia 2017 - page 14

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According to Article 25 of Law 8 of 1999, companies
who produce goods that can be used for at least one
year or more, are obligated to provide spare parts
and/or after sales facilities and to acknowledge the
guarantee or warranty based on the agreed contract.
In case a company fails to comply with this obligation,
the company has to compensate the consumer for
the noncompliance.
Companies who produced the goods, can be
exempted from liability of compensation if, among
others:
• it is proven that the respective goods should not
be circulated or are not intended to be circulated;
• the defect occurs afterwards;
• the defect occurs due to lack of adherence to the
rules on the goods qualifications;
• negligence caused by the consumers;
• the claim period of four years since the purchase
of the goods or the claim period as agreed has
exceeded.
e. E-Commerce
Regarding e-commerce in Indonesia, next to the
general rules of Law 8 of 1999, specific provisions are
in place. Thus, Law 11 of 2009 and its implementing
Reg. 82 of 2012 provide further provisions on
consumer protection. According to Article 1 of Reg.
82 of 2012, an electronic contract is an agreement of
the parties created through the electronic system.
Article 48 of Reg. 82 of 2012 states that these
electronic contracts have to comply with specific
requirements. Among others, electronic contracts
addressed to the residents of Indonesia must be
made in Indonesian language. Electronic contract
shall at least contain the following:
• identity data of the parties;
• objects and specifications of the goods;
• requirements for e-commerce;
• prices and costs;
• cancellation procedure
• a provision which entitles the injured party to
be able to return the goods and/or request a
replacement product if there is a hidden defect;
and
• choice of law to resolve any arising disputes.
CERTIFICATION
In Indonesia, several certification requirements
regarding goods and services are in place. Among
others, certification is one way to ensure a specific
quality of a product or its production process and
therefore serves consumer protection. Some of the
provisions on product certification shall be presented
in the following.
a. Halal Product Assurance
According to Article 4 of Law 33 of 2014 on Halal
Product Assurance (Law 33 of 2014), products
that enter, circulate, and are traded in the territory
of Indonesia must be certified halal. “Products”
according to Law 33 of 2014 are goods and/or
services related to food, beverages, drugs, cosmetics,
chemical products, biological products, genetically
engineered products and consumer goods that are
worn, used or utilized in public. In order to certify
a product as halal, the product must be assessed
including its material procurement, manufacturing
process, storage, package, distribution and
presentation. According to Article 17 of Law 33
of 2014, materials used for a product originating
from animals, plants, microbes or material that is
obtained through chemical, biological or genetically
modified process are in general halal, except they are
declared as haram according to sharia. As stipulated
in Article 18 of Law 33 of 2014, haram materials are
those from corpses, blood, pigs and animals that
are not slaughtered in accordance with the sharia.
Law 33 of 2014 requires a separate location of halal
and non-halal products and also the equipment
for slaughtering, processing, storing, packaging,
distributing, selling and presenting. The examination
of the halalness of a product and the issuance of the
halal certificate will be conducted by government
agencies, which will issue the halal certificate in
compliance with the written halal fatwas issued by
the Indonesian Ulema Council.
b. Food and Medicine
Several laws and regulations are dealing with food and
medicine in Indonesia. In accordance with Regulation
27 of 2013 concerning Importation Control of Drug
and Food into the Territory of Indonesia (Reg. 27 of
2013), specific provisions are applying to the import
of food and drugs. Drugs and food is defined as drug,
traditional medicine, quasi medicine, cosmetics,
health supplement, and processed food. In order to
import drugs and food, the importer is obliged to
obtain the Import Information Letter (SKI) and a
circulation permit.
Furthermore, according to Article 32 of Regulation 28
of 2004 on Food Safety, Quality and Nutrition (Reg. 28
of 2004), certification and characterization that states
food appropriateness in respect of the Indonesian
National Standard shall be carried out in accordance
with the prevailing legislation. The Minister who
is responsible for agriculture, fishery or the Head
of the National Agency of Drug and Food Control
shall, in accordance with their respective duty and
authority, set forth the requirements and procedures
for the quality of food that is highly risky in terms of
food safety. Certification in terms of the Indonesian
National Standard that is imposed compulsorily or
in respect of the quality requirements shall constitute
part of the food control prior to distribution.
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