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Govt, House to ratify ASEAN e-commerce agreement
Political parties within the commission agreed to move forward with the deliberation of the bill, which is expected to become a game changer in the industry in Indonesia.
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Employees sort out goods at a Lazada warehouse in Cimanggis, West Java, in December 2020. During Lazada’s three-day Garbolnas promotional event from Dec. 12 to 14, the e-commerce platform saw a 100 percent year-on-year increase in sales. (JP/Seto Wardhana)
T
he House of Representatives Commission VI, which oversees trade, industry and state-owned enterprises (SOE), has given its nod to ratification of the ASEAN Agreement on Electronic Commerce (AAEC).
Political parties within the commission agreed to move forward with the deliberation of the bill at the upcoming plenary meeting, which is the final stage for passing it into law.
Trade Minister Muhammad Lutfi told lawmakers during a hearing on Wednesday that the law would include several aspects of e-commerce regulation, including consumer protection, protection of e-commerce platforms, intellectual property rights, competition and cybersecurity.
“I hope this bill can be passed soon and the ASEAN Agreement on E-commerce can be implemented immediately,” Lutfi said on Wednesday.
Read also: Unleash the unicorns: IDX expects strong market cap growth
Lutfi added that the bill was essential for Indonesia to keep up with the rapid growth of the e-commerce industry. E-commerce transactions in Indonesia are expected to grow by 33.11 percent to Rp 354.3 trillion (US$24 billion) in 2021, according to the ministry’s data.
The rapid growth, Lutfi said, is also reflected in the number of companies in the digital economy, with Indonesia home to several unicorns — or start-ups valued at more than $10 billion, namely Gojek, J&T, Tokopedia, Bukalapak, Traveloka and OVO.
