Thursday, 10 December 2015


The Ministry of Communication and Information predicted business prospect in e-commerce in 2015 would grow significantly. The growth of E commerce was propelled by bettered technology access and direct connectivity to consumers. Moreover consumers of adult age were more daring to experiment and they were more consumptive. Players in the industry were suggested to strengthen branding the way it was produced by local producers in the cellular phone industry.

The Ministry of Communication and Information predicted total value of e-commerce would come to USD 10 billion to USD 20 billion this year end. Minister Rudiantara stated on Thursday (13/8) that e-commerce as one of the sub-sectors of creative economy was constantly growing. He mentioned that in 2013 the value came to USD 8 billion, in 2014 in increased to USD 12 billion and by this year and predicted to be USD 18 billion – USD 20 billion.

He added on that in the next 5 years e-commerce total value in Indonesia was expected to e-commerce total value in Indonesia was expected to come to USD 100 billion. Pursuant to that matter the Government consisting of 8 institutions would make a roadmap for e-commerce. He said that the roadmap would serve as guidelines for companies of various levels like start-up companies, small business (UKM) or even well established corporations.

For that matter Rudianto suggested players for e-commerce in Indonesia to use .id as domain to minimize bandwidth expenses paid to overseas servers. The Minister disclosed that he had prepared facilities. He saw that many players of e-commerce in Indonesia today were still using .com as domain. He said that use of .id could be adjusted to the location of transaction domination. If the transaction was international .com could still be use as domain. Rudiantara stressed that if players of e-commerce were of international transactions constituted only 5% of their total sales, they were suggested to use

Similar statement was a made by Andi Budimansyah chairman if PANDI Indonesia Internet Domain Management. He agreed with Rudiyantara who pled e-commerce players in Indonesia to use .id as domain. Andy stated there were 3 important points using i.d. as domain. Firstly bandwidth espenses did not have to flow to other country if local domain was used. Andi said that domestic content must be increased to draw users of foreign internet to enter Indonesia.

Secondly, access to internet would be faster if domestic domain was used. Internet users did not have to access overseas server so the access was relatively faster. Thirdly the case of domain authority. If the overseas domain was used, the arrangements would be managed by foreigners such as pre-requirements for domain users and where the DNS was located.

Businessplayers welcomed Government’s initiative to prepare electronic trading regulation in Indonesia. The Government was asked not just to focus on regulating distribution of goods but also services on the could. Chairman if ASPINDO Haryadi Sukamdani stated that electronic trading must be regulated so the Government could control and at the same time collect money from tax.

He said that the trend of doing transactions by internet kept increasing. All sellers had to do was to communicate and send the message by email of chatting. The consequence was that the Government could not check products and tax incurred because the goods could not be detected physically. Harriyadi showed as example products traded by e-commerce were usually of graphic design category, architectural design, interior design, video games and animation film. (SS)

Business News - August 19, 2015

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