THE IMPACT OF GLOBALIZATION ON THE CONSUMER PROTECTION IN INDONESIA
It is generally known that globalization has been a major discourse that has stimulated multifarious ideas, concepts and debates between the government, politicians, economists, lawyers and other related stakeholders. In terms of law and legal thought, according to Kennedy, this mode of thinking has been evolved for 150 years. He remarked three conceptual periods of institutional and legal theory development including: classical legal thought, the social, and the current globalization that was described as a unsynthesized coexistence of transformed elements from both first and second thought. According to Keleman, the globalization has spread American legal style around the world that has been propelled by economic liberalization and political fragmentation. These two factors have resulted in the transformation of mode of governance from informal, opaque, cooperative to be formal, transparent, and adversarial ones. According to Kagan, this outcome typically reflected the adversarial legalism that consists three essential elements namely: policy making, policy implementation, and dispute resolution.
As an active nation in international relation, Indonesia has been affected substantially by the globalization of legal services and convergence of legal systems. Consumer protection is one of the most developed sector that progressively adopted the rule of professional law and the spirit of adversarial legalism as an inescapable impact from globalization and convergence of law. This paper will identify and analyze the impact of globalization on consumer protection in Indonesia by dividing the impact from the result of economic liberalization and political fragmentation. Then, each elucidation will encompass the level of policy making, policy implementation, and dispute resolution mechanism on consumer protection in Indonesia. Furthermore, this paper will also analyze how the incorporation of local value can avail the receptiveness of the globalization of legal services and convergence of legal system on consumer protection in Indonesia.
Economic liberalization was formally embodied through comprehensive negotiations of trade in the Uruguay Round. At that unprecedented moment, 123 nations agreed to establish the World Trade Organization (WTO) as the successor of the General Agreement on Tariffs and Trade (GATT). It would be a stepping stone to extend the economic liberalization because of their substantial coverage encompassing investment, intellectual property rights and services as a part of tradable activities. Indonesia bound itself through promulgating Law No. 7 of 1994 regarding the Ratification of Agreement of Establishing the WTO. The increasing performance of economic development was an essential consideration in ratifying its agreement that progressively allowed the operation of foreign providers. As an...