Sunday, 12 October 2014


Seeing the high profits from the use of electronic commerce, commonly known as e-commerce, the government is targeting the birth of Government Regulation on e-commerce as a form of rules derived from Law No. 7/2014 on Trade, which is expected to be issued before October 20, 2014 as the expiration of United Indonesia Cabinet II.

This was stated by Deputy Minister of Trade, Bayu Krisnamurthi, on Tuesday (September 23) considering that the use of e-commerce has become a was of trading on a global level. As one of the results of his visit to China at the end of last week, he stated that trading can also be driven by opening up access so that ASEAN products can enter the Chinese market, and vice versa. “Looking at the ASEAN market alone, Indonesia is seen as an attractive market for trading using e-commerce, because studies show that one of two Internet users in Indonesia will use online shopping system in a year.

Based on its characteristics, 63.4 percent of online buyers are “white collar”, and 21.5 percent are entrepreneurs. It shows that online trading market will continue to grow. The value of online sales in Indonesia in 2013 reached USD 7.2 billion, and this year it is expected to reach the same value, with an average annual growth of 40 percent in 3 to 4 years. While it is expected that in 2015 total value of trade will reach USD 10 billion. Indonesian consumers are shopping for a variety of fashion products, apparel (jewelry), cosmetics, and food using e-commerce.

We see why online trading is more developed in China, because the infrastructure is well developed, and the government regulation is very supportive. In Indonesia, online trading system requires more hard work, and the regulation should be more supportive of this trading system. We will build a supportive system that would protect consumers in doing international trade with any country without limitation, he said.

“This also applies to companies that will do trading system in Indonesia, and they will be treated according to the laws of Indonesia, including the tax laws. We hold this principle, since consumers in Indonesia are protected by the Consumer Protection Act No. 8/1999. Value of world trade that uses e-commerce reached USD 1.25 trillion in 2013, so the year the value is estimated at USD 1.5 trillion.

Looking at all the risks that occur as a result of using online trading system, actually consumers have to understand these risks. Therefore, the Ministry of Trade will position online trading system as a trading system, which is more useful as a tool in trade. The Ministry of Trade also urged entrepreneurs who are members of small and medium enterprises to use e-commerce system in order to gain greater exposure.

However, if there are entrepreneurs whose business is unique and does not want to use this system, it is okay. The government calls on employers to use e-commerce, because compared to other countries, the participation of Indonesia is still minimal. That is way according to Bayu, the government wants to build a trade ecosystem by e-commerce to anticipate when there is hedging and also concerning the payment system. We will build a comprehensive system, including a system for transport (logistics) and warehousing system, he explained. (E)

Business News - September 26, 2014

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