Consumer Protection in the Digital Economy Era: A Literature Analysis of E-Commerce Regulation in Indonesia

Abstract

The growth of Indonesia’s digital economy has driven a significant transformation in transaction patterns while posing new challenges regarding consumer protection. Although the Consumer Protection Law and Personal Data Protection Law have been passed, they are not considered optimal in responding to the complexity of the digital ecosystem.  This research uses a descriptive qualitative approach based on a structured literature review combined with doctrinal legal analysis and thematic synthesis. This study aims to evaluate the effectiveness of consumer protection regulations in e-commerce transactions in Indonesia by examining legal studies, consumer behavior, and international regulatory comparisons through a literature review approach.  The study’s results show that regulatory implementation weaknesses, low digital literacy, insufficiently standardized online dispute resolution mechanisms, and institutional enforcement and supervisory gaps remain important obstacles. Additionally, an overly rigid ex-ante regulatory approach has the potential to stifle digital innovation. Therefore, adaptive, participatory policy reformulation based on the principle of equitable consumer protection is needed.