The Irony of Indonesia’s E-Commerce, Prof Megawati Simanjuntak: Transactions Surge, Consumer Protection Remains Constrained
Indonesia’s digital transformation has developed rapidly, with internet users reaching nearly 80 percent of the total population in 2025. This surge has positioned e-commerce as a strategic pillar of the national digital economy. Ironically, the consistent growth in transaction value has not been matched by adequate strengthening of consumer protection.
Professor of Consumer Behavior and Protection at IPB University, Prof Megawati Simanjuntak, stated that the vulnerability of e-commerce consumers is reflected in the high number of complaints and the increase in consumer losses. Data from the National Consumer Protection Agency of the Republic of Indonesia show that e-commerce complaints continue to rise, accompanied by increasing financial losses experienced by consumers year after year.
“This condition indicates that the rapid growth of e-commerce has not been accompanied by adequate consumer protection, compounded by overlapping responsibilities among platforms, sellers, logistics providers, and payment service providers,” said Prof Mega.
According to her, consumer complaints that continue to increase but are not resolved fairly and transparently will erode public trust in e-commerce in the long term. Consumers may become more hesitant to transact, more selective, or even revert to transaction patterns perceived as safer.
“In the long term, this can slow digital economic growth because its primary foundation, consumer trust will become fragile. The digital economy requires not only innovation and large transactions, but also a sense of security and justice for consumers,” she explained.
Consumer complaints against online marketplaces include online fraud, personal data breaches, misinformation, and manipulative practices such as dark patterns. However, Prof Mega revealed that many consumers remain reluctant to report incidents because they perceive the procedures as too complicated, feel sympathy toward sellers, or consider the financial losses too small.
“Complaints that the cost, time, and energy required to file a report exceed the value of the loss are an important signal that our protection system is not yet fully consumer-friendly. If victims of minor losses feel it is pointless to report, violators may continue repeating offenses due to minimal deterrent effect,” stressed the Vice Dean of the Faculty of Human Ecology (Fema) for Academic Affairs, Student Affairs, and Alumni.
Prof Mega suggested that complaint handling and dispute resolution systems must be made simpler, faster, and low cost, particularly for small-value cases. She emphasized that effective consumer protection is not only about strong regulations, but also about ensuring easy and fair access for the public.
Furthermore, she added, a multidimensional and collaborative empowerment strategy and policy recommendations are needed. The government must strengthen the implementation of the national consumer protection strategy; academics should develop evidence based interdisciplinary research; businesses need to apply consumer-by-design principles; and society should play an active role in advocacy and public education.
“Protected and empowered consumers are the main foundation for digital economic growth that is not only economically significant, but also fair, secure, and sustainable for all parties,” she concluded. (MHT) (IAAS/KAL)
