Legal Protection of Consumers Following the Bankruptcy of The Digital Start-Up Company Fabelio

Abstract

The rapid expansion of digital start-up companies in Indonesia has substantially reshaped commercial transactions by enhancing efficiency and accessibility through electronic platforms. Nevertheless, this transformation has simultaneously generated significant legal vulnerabilities for consumers, particularly when digital start-ups experience financial distress or bankruptcy. A prominent example is the bankruptcy of Fabelio (PT Kayu Raya Indonesia), which resulted in widespread consumer losses due to non-delivery of goods and the absence of refund mechanisms. This article examines the extent of legal protection afforded to consumers following the bankruptcy of Fabelio and identifies the structural obstacles faced by consumers in asserting their rights. Employing normative legal research with statutory and case-based approaches, this study focuses on the Commercial Court Decision of Central Jakarta Number 47/Pdt.Sus-PKPU/2022/PN.Niaga.Jkt.Pst. The findings demonstrate that consumer protection within the Indonesian bankruptcy regime remains ineffective, as consumers are classified as concurrent creditors and therefore lack priority in the distribution of the bankruptcy estate. This condition underscores the necessity for regulatory reform and normative harmonization between bankruptcy law and consumer protection law in order to ensure legal certainty and substantive justice within the digital business ecosystem.