Jokowi Signs Bill Mandating Online Sellers to be Licensed

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  • Staff work at a logistics warehouse for the upcoming Single's Day, also known as Double 11, a shopping holiday founded by Alibaba and popular among young Chinese people, in Shenyang city, northeast China's Liaoning province, 10 November 2019. Akin to Black Friday and Cyber Monday in the United States, Singles' Day has been promoted as a shopping fest by Alibaba Chairman and CEO Daniel Zhang since 2009, growing rapidly to become the world's biggest online sales event. REUTERS

    Staff work at a logistics warehouse for the upcoming Single's Day, also known as Double 11, a shopping holiday founded by Alibaba and popular among young Chinese people, in Shenyang city, northeast China's Liaoning province, 10 November 2019. Akin to Black Friday and Cyber Monday in the United States, Singles' Day has been promoted as a shopping fest by Alibaba Chairman and CEO Daniel Zhang since 2009, growing rapidly to become the world's biggest online sales event. REUTERS

    TEMPO.CO, Jakarta - President Joko Widodo or Jokowi has signed the regulations on online trade on November 20, as stipulated in Government Regulation (PP) No.80 of 2019 on Trading via Electronic Systems (PMSE). The rule was put in effect five days later on November 25.

    The regulation states that online trading are those with transactions carried out through a series of electronic devices and procedures.

    The regulation states that business operators must have a business license in conducting online trading business activities. The rule does not apply to a party that does not benefit directly from the transaction, and parties that are not directly involved in the contractual relationships of the parties conducting online trading.

    To make it easier for entrepreneurs to get the required business license, the regulation states that the application for permits can be done through an integrated licensing process. 

    The rule also asserted that domestic and overseas online traders who transact with consumers must adhere to Indonesian laws. 

    If online merchants harm consumers, consumers can report the losses incurred to the minister. Business actors who are reported by disadvantaged consumers must also complete the reporting as referred to, otherwise, they would be "included in the priority list of supervision by the minister that the public has access to," article 18 paragraph (3.4) of the PP stated.

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