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Jakarta Post

E-marketplaces brace for regulatory turbulence

  • The Jakarta Post

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Jakarta   /   Mon, March 1 2021   /  01:00 am
Illustration of e-commerce.(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 regulato...