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Logistics firms to challenge new e-commerce regulation in court
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Workers sort items at a Lazada Warehouse on Dec. 17, 2020, in Cimanggis, West Java, during the “Tiga Hari Belanja Online Nasional“ (Garbolnas), which was held on December 12-14, 2020. Lazada experienced a 100 percent increase in sales compared to 2019 events. In September 2020, Bank Indonesia (BI) recorded that e-commerce transactions reached Rp 180.74 trillion (US$11.68 billion), lower than the value of e-commerce transactions in 2019, which amounted to Rp 201 trillion. (JP/Seto Wardhana)
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ocal logistics businesses are planning to challenge the Trade Ministry’s newly issued regulation on e-commerce, which will restrict the sale of cheap imported and cross-border items through the platform.
E-commerce Logistics Association (APLE) chairman Sonny Harsono said on Wednesday that the regulation would put logistics services at a disadvantage. He estimated that logistics businesses will see between Rp 60 billion (US$3.88 million) and Rp 100 billion in losses.
This legislation will also have a multiplier impact, including widespread layoffs in the logistics sector, he said.
"That's why APLE will take legal action in the form of a judicial review in the Supreme Court," Sonny said, as quoted from Kontan.
Read also: Government to ban social commerce transactions
The regulation in question is Trade Ministerial Regulation (Permendag) No.31/2023, which the ministry made official on Wednesday as an amendment to a 2022 regulation.
It interferes strongly with pricing mechanisms by stating that imported goods sold on domestic e-commerce platforms must have a minimum freight-on-board (FOB) price of $100 per unit.
