Monday, 8 December 2014


The winds of change in communication and transaction from conventional way to on-line was strongly evident as indicated by growing number of Smartphone and internet users. Data of the Ministry of Communication and Information showed that the total e-commerce market in Indonesia was posted at Rp. 130 trillion in 2013 or around 1% of world’s income after reaching Rp. 69 trillion in 2012. Growth of e-commerce shopping in Indonesia was also predicted to increase to 71% in the world with total value of USD 1.8 billion or around Rp. 18 trillion in 2013. Meanwhile the world’s e-commerce market came to USD 1.29 trillion, the Asia Pacific region being the most promising market opportunity followed by the USA and Western Europe.

Erik Hidayat, Chairman of the Creative Economy and Tourism, the Association of Indonesia Young Entrepreneurs stated in Jakarta on Monday [20/10] that execution of Asean Economic Community 2015 would enhance interest in electronic trading. Eric stated that distance would pose as problem when AEC was in effect where distance between buyer and sheller would be hard compared to inter domestic trading,

Indonesian producers wishing to offer products overseas often had no strong capital back up, so e-commerce would be the alternative in marketing the product. Electronic trading, according to Eric, could be benefited by Indonesian businessplayers to expand the market overseas. He said that to promote domestic marketing through e-commerce a sound internet support would be needed, so it was up to the Government to facilitate wide internet service. “in the future trading, internet would be indispensable” Erik said

Erik disclosed that various obstacles must still be put aside by all stakeholders, i.e. the Government, executors and e-commerce practitioners, businesspeople and the people. In the execution, e-commerce, with support if adequate infra structure and facilities could serve as alternative business means in accordance with Indonesia’s geographic condition, total population and business climate. Besides, e-commerce was also a way to minimize unemployment thanks to its easy and simple application.

Meanwhile in developing e-commerce in Indonesia, the Government had taken some protective measures. The Director General of Telematika Application [Aptika], Ministry of Communication and Informatics Bambang Heru Tjahjono stated that the Government had protected local players by issuing Law no 11/2008 on information and Electronic Technology [ITE] and PP No 82 year 2012. The regulation regulated electronic operations system.

Legal wise, Bambang said, he would step up public confidence. Therefore e-commerce needed sound legal protection. At the moment, the Government was in the process of scheming up Government Regulation Plan [RPP] for e-commerce including regulating size of tax to be imposed on e-commerce users. He said that e-commerce was a form of trading so the system must be regulated.

In a modern era where transactions were using in-line, it had become a key method to make transaction easy. E-commerce was rated as more effective in marketing product or transactions. Transaction system in e commerce network was opportunity for Indonesian businesspeople to market their products. (SS)

Business News - October 24, 2014

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