IPB's Contributions in the Consumer Empowerment Index FGD

Entering free trade now results in consumers being in increasingly complex markets. The more diverse choices of goods and services as well as technological advancements, the wider the flow of goods and services in a country. So that consumers are more easily become objects or targets for economic actors who deliberately seek maximum profits, either through promotions or sales that often harm consumers. The weak position of consumers is due to the low level of awareness and education of our consumers.

Based on the results of the Indonesian Consumer Empowerment Index (IKK) mapping conducted by the Ministry of Trade, the Indonesian IKK value in 2018 is 40.41. This index is still far below the European Union (index 51.31), Malaysia (Index 56.9), and South Korea (index 64). "The low level of this IKK is partly due to the low understanding of regulations that explain consumer rights and obligations, low understanding of consumer protection institutions, inaccurate buying behavior and reluctance of consumers to complain," said the Lecturer in the Family and Consumer Science Faculty, Human Ecology IPB University (FEMA IPB), Dr. Megawati Simanjuntak, SP in Focus Group Discussion (FGD) "The Importance of Understanding the Consumer Empowerment Index (IKK) in an Effort to Improve Indonesian IKK", Wednesday (27/2) at the Grand Mercure Harmoni Hotel, Jakarta.

The FGD which aims to improve the understanding of ministries / institutions about the importance of IKK in an effort to increase awareness of consumer protection was held by the Coordinating Ministry of Economic Affairs.

Further Dr. Megawati said that the role of the state to protect the entire community as a weak party when faced with a corporation is present in the form of an institution whose duty is to provide protection to consumers. UU no. 8 of 1999 concerning Consumer Protection recognizes three institutions mandated to carry out consumer protection duties namely the National Consumer Protection Agency (BPKN), the Consumer Dispute Settlement Agency (BPSK) and the Society for Consumer Self-Protection (LPKSM).

"Increasing consumer empowerment will not only increase the protection of consumer rights, but also encourage consumer awareness and obligations which in turn will have an impact on improving the quality and growth of industry, as well as the national economy. Business actors will also be encouraged to maintain quality and provide excellent service. Considering the importance of IKK in increasing consumer empowerment, it is necessary to understand deeply what the IKK is, methodology and factors that can improve IKK, "explained Dr. Megawati.

On that occasion, Dr. Megawati explained the method of measuring the index of consumer empowerment that had been implemented in 34 provinces in Indonesia. For 2019, the measurement of the consumer empowerment index will also be carried out by using generic instruments for ASEAN countries.

The FGD was opened with a speech from the Assistant Deputy for Strengthening Domestic Market and Business Order, Coordinating Ministry for Economic Affairs, Moch. Edy Yusuf was attended by representatives of the Ministry of Trade, Ministry of Industry, Ministry of Communication and Information, Ministry of Transportation, Ministry of Energy and Mineral Resources, Ministry of Health, Ministry of Public Works and Public Housing, Office of Cooperatives, Small and Medium Enterprises and Trade in DKI Jakarta Province, Department of Industry and Trade in West Java Province, Banten Provincial Office of Industry and Trade, Financial Services Authority (OJK), Food and Drug Supervisory Agency (BPOM), National Standardization Agency (BSN), National Consumer Protection Agency (BPKN), and other relevant Ministries / Institutions .

Moch. Edy Yusuf said the importance of all ministries under the Coordinating Ministry for Economic Affairs synergized and focused on strategic efforts to increase the index of consumer empowerment. Moreover, the Consumer Empowerment Index has become one of the Ministry of Trade's Program Performance Indicators (IKP). The expected results of this activity are FGD participants can understand the importance of IKK in realizing consumer protection and the formulation of policy recommendations to increase the value of IKK. (* / ris)

Published Date : 04-Mar-2019

Resource Person : Dr. Megawati Simanjuntak, SP

Keyword : Consumer Empowerment Index, Megawati Simanjuntak, Family and Consumer Science Department