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Print articleIndonesia - Consumer Protection Guidelines and Procedure for Downstream Oil and Gas Business Activities
November, 2008 -
To protect consumers of oil and gas products, on 13 June 2008, the Minister for Energy and Mineral Resources issued Regulation No. 19 of 2008 regarding Guidelines and Procedures for the Protection of Consumers for Downstream Oil and Gas Business Activities (the "Regulation").
A business entity that holds a business license to conduct any activities in the downstream oil and gas sector (the "Business Entity") must maintain the quality assurance standards of its products in accordance with the service indicator specified in the Regulation. The products can be oil, gas, or other fuels, natural or petroleum gas, or products manufactured from oil and gas. For the above purpose, the Business Entity must take into account the rights of consumers, which include, among others:
1. Guarantees of supply and distribution of the products.
2. Standards and qualities (specifications) of the products in accordance with any regulations.
3. Reasonable pricing.
4. Easy, simple, and widely publicized service procedures and mechanisms.
To protect consumers, the Business Entity must also have means to facilitate the submission of complaints from the community, which may include a Post Office Box, a telephone or mobile phone contact number, a facsimile, or email account. The Business Entity is also required to submit a three-monthly report regarding its implementation of the quality assurance standards of its products to the Director General in charge of oil and gas businesses.
Administrative sanctions will be imposed for breaches of the provisions of the Regulation, which can be written warnings, suspension of business activities, or even cancellation of business licenses.
Within no later than six months of the issuance date of the Regulation, ie. before 13 December 2008, business entities must comply with the provisions of the Regulation.
A business entity that holds a business license to conduct any activities in the downstream oil and gas sector (the "Business Entity") must maintain the quality assurance standards of its products in accordance with the service indicator specified in the Regulation. The products can be oil, gas, or other fuels, natural or petroleum gas, or products manufactured from oil and gas. For the above purpose, the Business Entity must take into account the rights of consumers, which include, among others:
1. Guarantees of supply and distribution of the products.
2. Standards and qualities (specifications) of the products in accordance with any regulations.
3. Reasonable pricing.
4. Easy, simple, and widely publicized service procedures and mechanisms.
To protect consumers, the Business Entity must also have means to facilitate the submission of complaints from the community, which may include a Post Office Box, a telephone or mobile phone contact number, a facsimile, or email account. The Business Entity is also required to submit a three-monthly report regarding its implementation of the quality assurance standards of its products to the Director General in charge of oil and gas businesses.
Administrative sanctions will be imposed for breaches of the provisions of the Regulation, which can be written warnings, suspension of business activities, or even cancellation of business licenses.
Within no later than six months of the issuance date of the Regulation, ie. before 13 December 2008, business entities must comply with the provisions of the Regulation.
