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Indonesia plans to restrict foreign e-commerce platforms

Indonesia plans to restrict online retailers, especially e-commerce, from entering the country, according to Indonesian Minister Cooperatives and SMEs Teten Masduki.
Jakarta(VNA) – Indonesia plans to restrict online retailers,especially e-commerce, from entering the country, according to Indonesian Minister Cooperativesand SMEs Teten Masduki.

Teten said that theministry has suggested changes to Trade MinisterRegulation No.50/2020 on business permits, marketing, and overseeing tradeacross electronic systems or PMSE.

The minister underlined that this plan is neededto better maintain the products that are marketed domestically.

There are currently many foreign e-commercethat are able to directly conduct sales in the Southeast Asian nation, but theproducts fail to meet the Indonesian National Standard (SNI) or marketingauthorisation from the Food and Drug Monitoring Agency (BPOM), Teten was quotedby local media as saying at a press conference on December 26.

He argued that anyinternational e-commerce should basically be allowed to enter the Indonesianmarket but must be required to establish a company in Indonesia. 

Teten said he hopesthat as the restriction policy is implemented in the future, micro, small- and medium-size enterprises will not beleft out or unable to compete with imported products sold on foreign e-commerceplatforms, which are mostly cheaper compared to domestic goods. 

He added that the Indonesian governmentalso plans to involve domestic e-commerce platform owners in making programmesthat would be able to fend off price predators./.
VNA

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