Indonesia to Revise Regulation Restricting Foreign E-Commerce Platforms
TEMPO.CO, Jakarta - Cooperatives and SMEs Minister Teten Masduki said that the government plans to restrict online retailers, especially e-commerce, from entering Indonesia. Teten explained that he had suggested changes to Trade Minister Regulation No.50/2020 on business permits, marketing, and overseeing trade across electronic systems or PMSE.
Teten insisted that this plan is needed to better maintain the products that are marketed domestically. "There are currently many [foreign e-commerce] that are able to directly conduct sales here, but the products fail to meet the Indonesian National Standard (SNI) or marketing authorization from the Food and Drug Monitoring Agency [BPOM]," said Teten during the 2023 outlook and performance press conference on Monday, December 26, 2022.
Teten argued that any international e-commerce should basically be allowed to enter the Indonesian market but must be required to establish a company in Indonesia.
Teten hoped that as the restriction policy is implemented in the future, MSMEs will not be left out or unable to compete with imported products sold on foreign e-commerce platforms, which are mostly cheaper compared to domestic goods.
"So that price of imports will not beat prices of MSMEs products. The President also hoped that if we can produce it, why import it," said Teten Masduki.
The government also plans to involve domestic e-commerce platform owners in making programs that would be able to fend off price predators. "We don't want to ban them from selling here, but we want the same rules of the game," said Teten.
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