Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Fathan Qorib
Since the booming of internet trading activities (e-commerce), the government has initiated a regulation for this sector under a government regulation (Draft Regulation) to strengthen consumer protection and tax compliance. However, the government received various criticisms especially from the business circle.The Indonesian E-Commerce Association (idEA) is no exception. idEA petitioned their view regarding the Draft Regulation directly to the Ministry of Trade suggesting the postponement of the Draft Regulation issuance and to extend it for 30 more days. The government is yet to give answer on this petition.
idEA assumed the lack of transparency in the policy-making process by the Ministry of Trade. The official copy of the Draft Regulation only consists of the table of contents which is also incomprehensive; realizing the discussion itself has been an ongoing process for the last two years.
“It is essential to evaluate the whole Draft Regulation,” said Daniel Tumiwa, Chairman of idEA, in a press release on Wednesday.
In their petition, idEA listed five points that need further evaluation. The first one relates to the responsibilities and limitations for parties engaging in e-commerce activities, which consists of sellers, e-commerce service providers (PTPMSE), and intermediary service providers. idEA emphasized that e-commerce industry has several business models with distinctive responsibilities. Therefore, the regulation needs to accommodate those distinctions instead of implementing a uniform rule.
Second, regarding equal treatment for companies operating inside or outside Indonesian territory. According to idEA, if the government cannot take action against foreign companies, internet users might have their own alternatives. However, idEA did not go into detail regarding the alternatives.
The third one is the obligation to provide a valid identification, or commonly known as “know your customer” (KYC), such as ID card or business license. idEA asserted that a phone number should suffice, since telecommunication regulatory framework applied KYC to phone users.
Fourth, regarding multi-layered authentication, the Draft Regulation stipulates that PTPMSEs and companies -even the foreign ones- must own a special registry to operate in e-commerce business issued by the Minister of Trade.
Intermediary service providers, on the other hand, are not obliged to do this, unless it acts as a beneficiary on the said transactions. idEA firmly believe that imposing such rules on e-commerce without having the law to regulate it would only leave a bad impact to its growth.
And last, several provisions of the Draft Regulation contradict to the higher legislation. For instance, the Consumer Protection Law stipulates that disputes can be settled through court proceeding, alternative dispute resolutions, or administrative sanctions. The Draft Regulation, on the other hand, stipulates a concept of “online settlement” which is not regulated under the current legal framework.
“Our suggestions still need further elaboration. That is why the Ministry of Trade should give more time for us to offer substantial input for a document. We believe it will be crucial for the future of the national e-commerce,” Mr. Tumiwa concluded.
(hot/ja)
Marcell Sihombing, Fathan Qorib
Since the booming of internet trading activities (e-commerce), the government has initiated a regulation for this sector under a government regulation (Draft Regulation) to strengthen consumer protection and tax compliance. However, the government received various criticisms especially from the business circle.The Indonesian E-Commerce Association (idEA) is no exception. idEA petitioned their view regarding the Draft Regulation directly to the Ministry of Trade suggesting the postponement of the Draft Regulation issuance and to extend it for 30 more days. The government is yet to give answer on this petition.
idEA assumed the lack of transparency in the policy-making process by the Ministry of Trade. The official copy of the Draft Regulation only consists of the table of contents which is also incomprehensive; realizing the discussion itself has been an ongoing process for the last two years.
“It is essential to evaluate the whole Draft Regulation,” said Daniel Tumiwa, Chairman of idEA, in a press release on Wednesday.
In their petition, idEA listed five points that need further evaluation. The first one relates to the responsibilities and limitations for parties engaging in e-commerce activities, which consists of sellers, e-commerce service providers (PTPMSE), and intermediary service providers. idEA emphasized that e-commerce industry has several business models with distinctive responsibilities. Therefore, the regulation needs to accommodate those distinctions instead of implementing a uniform rule.
Second, regarding equal treatment for companies operating inside or outside Indonesian territory. According to idEA, if the government cannot take action against foreign companies, internet users might have their own alternatives. However, idEA did not go into detail regarding the alternatives.
The third one is the obligation to provide a valid identification, or commonly known as “know your customer” (KYC), such as ID card or business license. idEA asserted that a phone number should suffice, since telecommunication regulatory framework applied KYC to phone users.
Fourth, regarding multi-layered authentication, the Draft Regulation stipulates that PTPMSEs and companies -even the foreign ones- must own a special registry to operate in e-commerce business issued by the Minister of Trade.
Intermediary service providers, on the other hand, are not obliged to do this, unless it acts as a beneficiary on the said transactions. idEA firmly believe that imposing such rules on e-commerce without having the law to regulate it would only leave a bad impact to its growth.
And last, several provisions of the Draft Regulation contradict to the higher legislation. For instance, the Consumer Protection Law stipulates that disputes can be settled through court proceeding, alternative dispute resolutions, or administrative sanctions. The Draft Regulation, on the other hand, stipulates a concept of “online settlement” which is not regulated under the current legal framework.
“Our suggestions still need further elaboration. That is why the Ministry of Trade should give more time for us to offer substantial input for a document. We believe it will be crucial for the future of the national e-commerce,” Mr. Tumiwa concluded.
(hot/ja)