Indonesia Reviews E-Commerce Ecosystem Policy Overhaul

Indonesia is taking decisive action to reshape its burgeoning e-commerce landscape, with the Ministry of Trade announcing a significant revision of existing regulations. This move comes in direct response to mounting concerns voiced by Micro, Small, and Medium Enterprises (MSMEs), who have highlighted the burdensome administrative and logistics costs imposed by dominant digital trading platforms. The government's commitment is clear: to foster a more equitable and supportive digital economy for its local businesses.

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But I can't disclose the details yet, as it is still under discussion.

The revised Minister of Trade Regulation No. 31 of 2023 is poised to bolster the protection of local products and consumers. A key objective is to ensure that Indonesian goods and MSMEs receive priority in promotion and sales on e-commerce platforms. This strategic pivot aims to level the playing field, counteracting the dominance of foreign players and ensuring that the benefits of the digital economy are more widely distributed within the nation.

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Firstly, to protect consumers. Additionally, how the rights obtained by local sellers or products can be prioritized in the promotion or sales through e-commerce.

Minister of Trade Budi Santoso emphasized that the revision process is inclusive, involving close collaboration with business actors, platform owners, and sellers. This consultative approach underscores Indonesia's dedication to creating a digital ecosystem that is mutually beneficial and sustainable. The goal is not to stifle innovation but to ensure that growth is inclusive, empowering local entrepreneurs and safeguarding consumer interests, a perspective often overlooked in global e-commerce discussions that prioritize platform interests over national economic well-being.

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But it's not finalized yet, it's still under discussion.