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House passes ASEAN e-commerce trade deal
The agreement comes as Southeast Asian start-ups expand operations, intensifying competition in the region’s fast-growing digital economy.
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Employees sort out goods at a Lazada warehouse in Cimanggis, West Java, on Dec. 17. During Lazada’s three-day national online shopping event (Garbolnas) held from Dec. 12 to 14, the online retailer saw a 100 percent increase in sales compared with 2019. JP/Seto Wardhana (JP/Seto Wardhana)
T
he House of Representatives has approved the ASEAN Agreement on Electronic Commerce (AAEC), which is expected to spur e-commerce activity in the fast-growing economic region.
During a plenary session in Jakarta on Tuesday, all nine political parties approved the agreement that covers consumer protection, protection of e-commerce platforms, intellectual property rights, competition and cybersecurity, among other issues.
“This regulation is a legal umbrella for the e-commerce sector among ASEAN governments to increase trade value and the competitiveness of local businesses and to expand cooperation on e-commerce usage in ASEAN,” said Communications and Information Minister Johnny G. Plate on Tuesday.
All that remains is for President Joko “Jokowi” Widodo to sign the law for it to come into effect.
Read also: Govt, House to ratify ASEAN e-commerce agreement
The agreement comes as Southeast Asian start-ups expand operations across the region, intensifying competition in a digital economy that, according to a Google-Temasek report, will grow 24 percent annually over a five-year period to US$309 billion in 2025, largely driven by e-commerce growth.
A case in point, Indonesian unicorns Gojek and Tokopedia have merged into GoTo to strengthen their foothold on home turf as Singapore-based Grab and Shopee have been encroaching on the Indonesian market.
