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View all search resultsIndustry pushes back on move to fold ride-hailing into marketplace regulation
The Trade Ministry plans to expand the definition of trade conducted through electronic systems under Trade Minister Regulation No. 31/2023 on electronic commerce to include ride-hailing services and online travel agencies (OTAs).
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Logos for Indonesia’s six unicorns appear on-screen on Aug. 3, 2021. The six are ride-hailing company Gojek, e-wallet OVO, online travel agency Traveloka, logistics company J&T Express and e-commerce platforms Tokopedia and Bukalapak. (JP/Norman Harsono)
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he government’s plan to bring ride-hailing players, like Grab and Gojek, under the same regulatory umbrella as online marketplaces is prompting pushback from industry groups, which warn that the two sectors operate under different business models. They cautioned that one-size-fits-all rules could add regulatory uncertainty and weigh on the profitability of industry players.
According to a draft seen by The Jakarta Post, the Trade Ministry plans to expand the definition of trade conducted through electronic systems under Trade Minister Regulation No. 31/2023 on electronic commerce to include ride-hailing services and online travel agencies (OTAs).
The new regulation aims to tighten transparency rules for online marketplaces and merchants, including platform fee disclosures, product origin labeling, the use of artificial intelligence and obligations related to promotional discounts for micro, small and medium enterprises (MSMEs), according to the document.
It would require platforms to prioritize domestic products in search and recommendation algorithms and dedicate homepage space exclusively for domestic goods. It would also bar platforms from favoring their own affiliated payment or logistics services.
Trade Ministry domestic trade director general Iqbal Shoffan Shofwan told the Post on Wednesday that the revised regulation will expand the definition of domestic electronic trading operators to cover eight business models.
Trade Minister Regulation No. 31/2023 recognizes six business models for online commerce, which include online retail, marketplaces, classifieds, price comparison platforms and daily deals, with social commerce added in 2023.
The ministry aims to release the revised regulation as soon as possible, he added.
