Consumer Protection and The Implementation of Sanctions in Online Transactions

Abstract

Law No. 1 of 2024 on Information and Electronic Transactions aims to strengthen consumer protection in Indonesia, particularly in the realm of electronic transactions, which have rapidly evolved alongside digital transformation. While this law provides a clearer legal framework for safeguarding consumer rights, its implementation faces several challenges. Key obstacles include low digital literacy among the public, non-compliance by some business actors with the obligations set forth, and limitations in supervision and law enforcement. These factors prevent optimal protection of digital consumer rights. Therefore, collaboration among the government, businesses, and society is essential to address these barriers. Increasing digital literacy through public education programs, enhancing the capacity of oversight agencies, and imposing stringent sanctions on violators are crucial steps to improve the law’s implementation. Additionally, allocating more resources to strengthen surveillance technology and the capacity of relevant agencies is necessary. With these measures, Law No. 1 of 2024 is expected to function more effectively in protecting consumers, creating a safer electronic transaction ecosystem, and boosting public confidence in digital services in Indonesia.