The Role of the Department of Industry and Trade of the Special Region of Yogyakarta in the Prevention of Online Transaction Fraud Through Marketplace in Yogyakarta

Abstract

The rapid growth of digital commerce through online marketplaces has brought both economic benefits and new legal vulnerabilities, particularly for consumers. The increasing number of fraud cases in online transactions highlights the urgent need for active intervention by local governments to establish adaptive consumer protection mechanisms. This study aims to examine the role of the Yogyakarta City Trade and Industry Office in preventing online fraud and in providing legal protection for e-commerce consumers, considering the importance of institutional involvement at the regional level in addressing the challenges of digital transformation. This research adopts a juridical-empirical approach using qualitative methods. Data were collected through interviews with representatives of the Trade and Industry Office (Disperindag), the Consumer Dispute Settlement Agency (BPSK), and members of the public as digital consumers. The study addresses two main research questions: first, how the local trade office formulates policies to prevent fraud in online transactions, and second, how effective Disperindag and BPSK are in providing legal protection for consumers in the e-commerce environment.  Findings reveal that consumer protection is still primarily based on Law Number 8 of 1999 on Consumer Protection and the Electronic Information and Transactions Law (ITE), without the support of specific local regulations governing digital transactions. The Trade and Industry Office of Yogyakarta has yet to establish a dedicated unit for e-commerce oversight, and BPSK's dispute resolution process heavily depends on consumers providing complete and verifiable evidence. Although non-litigation dispute channels are available, the effectiveness of legal protection remains limited due to regulatory gaps, institutional constraints, and low consumer legal literacy. Thus, institutional reform and technological synergy are necessary to ensure an adaptive and effective legal framework for consumer protection in the digital trade era.