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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Fitri N. Heriani
The Indonesia Investment Coordinating Board. Photo by: RES
In order to support the ongoing e-commerce boom across Indonesia, the Indonesia Investment Coordinating Board (BKPM) is redoubling its efforts to formulate a roadmap for e-commerce investment. The BKPM is currently in the process of winding up deliberations regarding this roadmap, which is set to replace Presidential Regulation No. 39 of 2014.
The BKPM has received a total of 454 inputs to date regarding its plan to revise the current investment roadmap, and after this initial raft of inputs was reorganized along the lines of different business sectors, a resulting 222 inputs emerged.
These inputs consist of 43 inputs from the agriculture sector; 36 inputs from the transportation sector; 32 inputs from the trade sector; 23 inputs from the energy and mineral resources sector; nine inputs each from the forestry, health, public-works, and industrial sectors; eight inputs from the communications and information-technology sector.
Furthermore, seven inputs from the tourism and creative-economy sector; six inputs from the defense and security sector; four inputs from the education and culture sector; two inputs from the employment sector; and one input each from the financial and banking sectors; as well as a total of 16 inputs from other relevant sectors.
The deliberation process is now entering the coordination stage with the relevant technical ministries and the BKPM has already invited the Ministry of Communications and Information Technology (Kemenkominfo), as well as the Ministry of Trade (Kemendag), to offer input into the process.
A number of coordination meetings have already been held between these three government bodies, during which a broad consensus was reached that the issue still required further in-depth discussions, due to the fact that a number of regulatory areas remained a matter of contention.
Head of BKPM Franky Sibarani, revealed that several issues still needed further discussion, including the amount of foreign ownership that should be allowed within the e-commerce sector and whether or not a maximum foreign-ownership threshold should be imposed.
Mr. Sibarani explained that during the last coordination meeting, a suggestion had been tabled to allow up to 49% foreign ownership in the e-commerce sector. However, other attendees at the meeting had suggested that foreign ownership in this cutting-edge sector be restricted to 33% on a minimum total investment of USD 15 million.
Moreover, fundamental issues relating to authority and control of this fast-growing sector still need to be hammered out, as they involve government bodies such as Kemenkominfo in the online network (internet) sector, Kemendag for the trade of goods and services, and also the BKPM, as regards investment-related matters.
There has been a suggestion that where the new digital economy is concerned, Kemenkominfo should focus its efforts on the area of infrastructure, while Kemendag should concentrate on trade.
“Much work remains to be done, so that any resulting roadmap can be effectively implemented,” explained Mr. Sibarani in a press release dated Wednesday, 8 December 2015.
Where the new digital economy is concerned, a suggestion has been made that businesses be categorized as marketplaces. Such a categorization more accurately reflects the emergence of a new online business model predicated on creativity and technological development.
The application-based ojek (motorcycle taxis) or Uber taxis, for example, deny that they are transportation businesses at all as they own no vehicles. Similarly, businesses that run online shopping sites are reluctant to be labeled as trade businesses as they possess no actual inventories of goods, preferring instead to see themselves as marketplaces.
Mr. Sibarani further asserted that the currently under-deliberation investment roadmap would offer greater legal certainty and thus hopefully provide a solid regulatory framework through which new business ideas such as Gojek and Uber could thrive.
“Of course, we will need to coordinate with the National Department of Statistics [Badan Pusat Statistik – BPS] so that these new types of businesses can be included in the Indonesian Standard Business Classification (Klasifikasi Baku Lapangan Usaha Indonesia - KLBI),” asserted Mr. Sibarani.
Also commenting on this issue was Minister of Communications and Information Technology, Rudiantara, who stated that Indonesia was aiming to become the largest digital economy in Southeast Asia with a total value of USD 130 billion, equal to IDR 1,756 trillion. With this eventual goal in mind, the government is planning to nurture some 1,000 so-called “technopreneurs” with a total combined value of USD 10 billion (IDR 138 trillion) by 2020.
The BKPM is hoping that the new e-commerce investment roadmap will be completed by April 2016.
(sp)
Marcell Sihombing, Fitri N. Heriani
The Indonesia Investment Coordinating Board. Photo by: RES
In order to support the ongoing e-commerce boom across Indonesia, the Indonesia Investment Coordinating Board (BKPM) is redoubling its efforts to formulate a roadmap for e-commerce investment. The BKPM is currently in the process of winding up deliberations regarding this roadmap, which is set to replace Presidential Regulation No. 39 of 2014.
The BKPM has received a total of 454 inputs to date regarding its plan to revise the current investment roadmap, and after this initial raft of inputs was reorganized along the lines of different business sectors, a resulting 222 inputs emerged.
These inputs consist of 43 inputs from the agriculture sector; 36 inputs from the transportation sector; 32 inputs from the trade sector; 23 inputs from the energy and mineral resources sector; nine inputs each from the forestry, health, public-works, and industrial sectors; eight inputs from the communications and information-technology sector.
Furthermore, seven inputs from the tourism and creative-economy sector; six inputs from the defense and security sector; four inputs from the education and culture sector; two inputs from the employment sector; and one input each from the financial and banking sectors; as well as a total of 16 inputs from other relevant sectors.
The deliberation process is now entering the coordination stage with the relevant technical ministries and the BKPM has already invited the Ministry of Communications and Information Technology (Kemenkominfo), as well as the Ministry of Trade (Kemendag), to offer input into the process.
A number of coordination meetings have already been held between these three government bodies, during which a broad consensus was reached that the issue still required further in-depth discussions, due to the fact that a number of regulatory areas remained a matter of contention.
Head of BKPM Franky Sibarani, revealed that several issues still needed further discussion, including the amount of foreign ownership that should be allowed within the e-commerce sector and whether or not a maximum foreign-ownership threshold should be imposed.
Mr. Sibarani explained that during the last coordination meeting, a suggestion had been tabled to allow up to 49% foreign ownership in the e-commerce sector. However, other attendees at the meeting had suggested that foreign ownership in this cutting-edge sector be restricted to 33% on a minimum total investment of USD 15 million.
Moreover, fundamental issues relating to authority and control of this fast-growing sector still need to be hammered out, as they involve government bodies such as Kemenkominfo in the online network (internet) sector, Kemendag for the trade of goods and services, and also the BKPM, as regards investment-related matters.
There has been a suggestion that where the new digital economy is concerned, Kemenkominfo should focus its efforts on the area of infrastructure, while Kemendag should concentrate on trade.
“Much work remains to be done, so that any resulting roadmap can be effectively implemented,” explained Mr. Sibarani in a press release dated Wednesday, 8 December 2015.
Where the new digital economy is concerned, a suggestion has been made that businesses be categorized as marketplaces. Such a categorization more accurately reflects the emergence of a new online business model predicated on creativity and technological development.
The application-based ojek (motorcycle taxis) or Uber taxis, for example, deny that they are transportation businesses at all as they own no vehicles. Similarly, businesses that run online shopping sites are reluctant to be labeled as trade businesses as they possess no actual inventories of goods, preferring instead to see themselves as marketplaces.
Mr. Sibarani further asserted that the currently under-deliberation investment roadmap would offer greater legal certainty and thus hopefully provide a solid regulatory framework through which new business ideas such as Gojek and Uber could thrive.
“Of course, we will need to coordinate with the National Department of Statistics [Badan Pusat Statistik – BPS] so that these new types of businesses can be included in the Indonesian Standard Business Classification (Klasifikasi Baku Lapangan Usaha Indonesia - KLBI),” asserted Mr. Sibarani.
Also commenting on this issue was Minister of Communications and Information Technology, Rudiantara, who stated that Indonesia was aiming to become the largest digital economy in Southeast Asia with a total value of USD 130 billion, equal to IDR 1,756 trillion. With this eventual goal in mind, the government is planning to nurture some 1,000 so-called “technopreneurs” with a total combined value of USD 10 billion (IDR 138 trillion) by 2020.
The BKPM is hoping that the new e-commerce investment roadmap will be completed by April 2016.
(sp)