E-Commerce Fraud and Consumer Protection in Indonesia: Evaluating the Effectiveness and Limitations of Existing Legal Safeguards

Abstract

E-commerce growth in Indonesia has expanded consumer access to digital markets, but it has also increased exposure to fraud, including fake sellers, non-delivery of goods, misleading advertisements, off-platform payment redirection, and data-related risks. This study examines two main questions: how effective Indonesia’s existing legal safeguards are in protecting consumers from e-commerce fraud, and why the consumer protection framework must be re-evaluated in response to evolving digital risks. Using a normative legal approach, the article analyzes consumer protection law, electronic transaction regulation, electronic system obligations, and rules on trading through electronic systems. The discussion shows that Indonesian law already provides a relevant legal foundation through recognition of consumer rights, electronic contracts, electronic evidence, business obligations, and complaint mechanisms. However, these safeguards remain limited in practical enforcement, seller traceability, platform accountability, preventive supervision, and accessible dispute resolution. The study finds that consumer protection must be strengthened through clearer platform responsibility, stronger system supervision, faster remedies, and closer integration between consumer protection and information security.