The Jakarta provincial government is currently deliberating a draft regional regulation (rancangan peraturan daerah – “Raperda”) with the intention to regulate Jakarta’s trade sector. Amongst the things that is included in the Raperda regards to trade of goods and services, infrastructures, regional logistics, development of foreign trade activities, standardization, consumer protection, as well as oversight and control. This plan is an implementation of the Trade Law, which grants regional governments some regulatory powers to manage the trade sector within their respective region.
Domestic product utilization is one of the things covered in the Raperda. This provision mandates the Jakarta government and relevant stakeholders to act independently or collectively to promote the utilization of domestic products by supporting its promotion, marketing, information dissemination, as well as obliging the use.
On e-commerce, the Raperda orders businesses utilizing electronic system for their operation to provide complete and correct data and information. Such information includes the identity and legitimacy of the respective business, technical requirements pertaining to their goods or services, price and means of payment, as well as methods to transfer goods or services. Failure to comply with this provision results in administrative sanctions such as license revocation.
Commenting on the e-commerce issue, Nathaniel Mangunsong, a Senior Associate at Ginting & Reksodiputro law office, affirmed that there are no government regulation pertaining to e-commerce as of yet. He also applauded Jakarta government intention, and thinks that incorporating such provision is an innovative step.
“It can be regarded as an effort to establish a regulatory framework within the e-commerce sector which happens to be of non-existence as of now, while the government regulation draft on e-commerce is still being discussed. A future revision of the Raperda to synchronize it will indeed be inevitable should the government regulation be issued, should it be required. But we should also appreciate the Raperda,” said Mr. Mangunsong on 22 October 2015.
Mr. Mangunsong gave a 2014 example when retail stores flourished, but many regional governments don’t know how to respond due to insufficient regulatory framework at place. Jakarta, on the other hand, was quite prepared and was already equipped with a regional regulation on such matter.
Another matter worthy of mentioning under the Raperda is on infrastructure. The Jakarta government is responsible for developing trade infrastructures for small and micro businesses, traditional markets, warehouses, and places to sell certain commodities. There is also a more specific provision regarding small and micro businesses. Additionally, the Raperda also stipulated that a more comprehensive guideline will be regulated under a governor regulation.
Also another interesting provision under Article 44 of the Raperda is on the Jakarta government responsibility to maintain the quality of goods circulating in Jakarta. Such responsibility grants the Jakarta Government authority to initiate a development, oversight, and quality control program which will be regulated in detail under a separate governor regulation.
Yongky Suryo Susilo, the Executive Director of Nielsen Indonesia, stated his criticism against the Raperda, as he believes that trade-related regulations should be formulated to protect small and micro businesses or traditional businesses. On the contrary, as he firmly believe, that the regulatory framework should be designed to encourage traditional businesses to evolve even further.
“A protective regulation will only hamper traditional businesses to advance, preventing them from growing and achieve greater income,” asserted Mr. Susilo.
The Jakarta provincial government is currently deliberating a draft regional regulation (rancangan peraturan daerah – “Raperda”) with the intention to regulate Jakarta’s trade sector. Amongst the things that is included in the Raperda regards to trade of goods and services, infrastructures, regional logistics, development of foreign trade activities, standardization, consumer protection, as well as oversight and control. This plan is an implementation of the Trade Law, which grants regional governments some regulatory powers to manage the trade sector within their respective region.
Domestic product utilization is one of the things covered in the Raperda. This provision mandates the Jakarta government and relevant stakeholders to act independently or collectively to promote the utilization of domestic products by supporting its promotion, marketing, information dissemination, as well as obliging the use.
On e-commerce, the Raperda orders businesses utilizing electronic system for their operation to provide complete and correct data and information. Such information includes the identity and legitimacy of the respective business, technical requirements pertaining to their goods or services, price and means of payment, as well as methods to transfer goods or services. Failure to comply with this provision results in administrative sanctions such as license revocation.
Commenting on the e-commerce issue, Nathaniel Mangunsong, a Senior Associate at Ginting & Reksodiputro law office, affirmed that there are no government regulation pertaining to e-commerce as of yet. He also applauded Jakarta government intention, and thinks that incorporating such provision is an innovative step.
“It can be regarded as an effort to establish a regulatory framework within the e-commerce sector which happens to be of non-existence as of now, while the government regulation draft on e-commerce is still being discussed. A future revision of the Raperda to synchronize it will indeed be inevitable should the government regulation be issued, should it be required. But we should also appreciate the Raperda,” said Mr. Mangunsong on 22 October 2015.
Mr. Mangunsong gave a 2014 example when retail stores flourished, but many regional governments don’t know how to respond due to insufficient regulatory framework at place. Jakarta, on the other hand, was quite prepared and was already equipped with a regional regulation on such matter.
Another matter worthy of mentioning under the Raperda is on infrastructure. The Jakarta government is responsible for developing trade infrastructures for small and micro businesses, traditional markets, warehouses, and places to sell certain commodities. There is also a more specific provision regarding small and micro businesses. Additionally, the Raperda also stipulated that a more comprehensive guideline will be regulated under a governor regulation.
Also another interesting provision under Article 44 of the Raperda is on the Jakarta government responsibility to maintain the quality of goods circulating in Jakarta. Such responsibility grants the Jakarta Government authority to initiate a development, oversight, and quality control program which will be regulated in detail under a separate governor regulation.
Yongky Suryo Susilo, the Executive Director of Nielsen Indonesia, stated his criticism against the Raperda, as he believes that trade-related regulations should be formulated to protect small and micro businesses or traditional businesses. On the contrary, as he firmly believe, that the regulatory framework should be designed to encourage traditional businesses to evolve even further.
“A protective regulation will only hamper traditional businesses to advance, preventing them from growing and achieve greater income,” asserted Mr. Susilo.