TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Indonesian e-marketplaces brace for regulatory turbulence

Regulations on taxation, stamp duties and content moderation are seen as obstacles to digital economy growth.

Eisya A. Eloksari (The Jakarta Post)
Premium
Jakarta
Fri, February 26, 2021

Share This Article

Change Size

Indonesian e-marketplaces brace for regulatory turbulence E-commerce players believe several recently implemented regulations will burden the industry this year as the government tightens controls on Southeast Asia’s largest digital economy. (Shutterstock.com/one photo)

E

-commerce players believe several recently implemented regulations will burden the industry this year as the government tightens controls on Southeast Asia’s largest digital economy.

Indonesian E-commerce Association (IdEA) chairman Bima Laga said on Wednesday that certain requirements under the Job Creation Law, the Stamp Duty Law, a certain government regulation (PP) and a ministerial regulation would create downside risks for e-commerce. All the laws were introduced last year except the PP, which was introduced in 2019.

Bima, speaking at an online discussion, began with the Job Creation Law – the most expansive of the four regulations – which requires e-commerce platforms to include either buyers’ citizen identification numbers (NIKs) or their tax identification numbers (NPWPs) in tax invoices. The previous regulation only accepted NPWPs.

The regulatory change was meant to give platforms more flexibility when reporting invoices, but Bima said it added another layer of the know-your-customer (KYC) process to online transactions.

“The omnibus law should be reevaluated,” he said. “We hope that we can be a part of the law’s revision process so that the regulation can be right on target.” 

The government has been trying to tighten e-commerce regulations over the past year to manage the industry, whose gross merchandise value (GMV) is projected to reach US$124 billion by 2025, grabbing the majority of Southeast Asia’s projected US$309 billion internet economy GMV that year, according to a recent report.

Indonesia’s e-commerce GMV is forecast to grow 21 percent from 2020 to 2025 to $83 billion, making it a larger market than online travel, online media, transportation and food, according to the e-Conomy SEA 2020 report by Google, Temasek Holdings and Bain & Co.

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

Indonesian e-marketplaces brace for regulatory turbulence

Rp 29,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 29,000
{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.