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 i.d.com
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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