"This phenomenon must be supported by adequate policies and infrastructure," Srie Agustina, the ministry's acting director general of domestic trading, said during the Indonesian E-Commerce Summit and Exhibition in Serpong, Banten, yesterday.

Srie estimated that the e-commerce industry will take over 20 percent of the conventional retail market share in the next four years. Right now, e-commerce's share in the conventional retail market is five percent.

At the E-Commerce Summit opening yesterday, President Joko Widodo warned local e-commerce businesses about the "attack" of foreign players. According to the President, the acquisition of Southeast Asia's popular online shopping site Lazada by China's e-commerce giant Alibaba two weeks ago is something that industry players must keep an eye on. "It's a warning for everyone."

Alibaba announced that it has acquired Rocket Internet's stake in Lazada worth US$1 billion (Rp13 trillion). The takeover strengthens Alibaba's position in the e-commerce markets of Asia and the world. The acquisition allows Alibaba to reach 560 million online consumers in Southeast Asia, including Indonesia.

To boost the quality the domestic e-commerce industry, the Trade Ministry will mandate online trade sites to register with the ministry.

The Indonesia E-Commerce Association (IDEA) is planning for an accreditation of e-commerce sites, in a bid to improve the quality and credibility of local e-commerce players. The accreditation assessment will begin in June carried out on 200 sites online sales-and purchase businesses. The assessment categories include operational sites, clarity payment, and customer service aspects.

Earlier, Minister of Communications and Informatics Rudiantara expressed his optimism that the retail e-commerce business this year can record a transactions deals total of US$20 billion or around Rp260 trillion.

ADITYA BUDIMAN