eCommerce Association Proposes Local content in Online Business

Ilustrasi (dok)

JAKARTA (IndoTelko) - Indonesian eCommerce Association (IDEA) proposed for some kind of local content provision in the online business to encourage the local industry among the domestic businessmen.

"A lot of people said that we are lacking of the Red and White (Nationalist) in this business. For us the Red and White is giving the domestic businessmen a portion and place. Therefore we are proposing for some kind of local content eCommerce version which is not focused on the hardware," said IDEA Chairman Daniel Tumiwa in Jakarta, Yesterday.

Daniel said that IDEA is not "allergic" to incoming foreign investment for any income, in fact it is needed to grow the business.

"We are very open to the issue of the opening of the Negative Investment List (DNI) in this business. Because we need investment to grow," he said.

Daniel proposed that foreign ownership is permitted until about 49% for investment below US $ 5 million to one eCommerce player, the figure might increase if the investment value is also increased.

"We do not look at the ownership, the Red and White is if the domestic players are given a chance. Well, later we would make a demand for 51% proportion Indonesian nationals employees and it would increase every year, and has one Indonesian Director in one eCommerce," he said.

It is expected that the government would also give the same attention to players so that there is no eCommerce monopoly by the big players that are supported large investor. "We need to prioritize local players," he said.

Unfortunately, Daniel did not include in his proposal to the government who are preparing the eCommerce road map about the Data Center placement in Indonesia. "According to our view, the Data Center is the matter of business decision," Daniel said.

Earlier, the data center issue has been clearly stated in the Government Regulation No.82 of 2012 on Implementation of the System and Electronic Transactions (PP PSTE) which said that the Data Center for public service must be placed in the country.(es)