31 initiatives to boost eCommerce over US $ 130 billion in 2020

Ilustrasi (dok)

JAKARTA (IndoTelko) - Indonesian government has prepared 31 initiatives in the eCommerce road map which will be unveiled in late January 2016 to boost the sector's valuation reach over US $ 130 billion in 2020.

"We have 31 initiatives that are cross-cutting and inter-ministries, agencies and other stakeholders. If the 31 initiatives are implemented properly, timely and well targeted, the estimated value of eCommerce transactions will reach $ 130 billion by 2020 on condition of implementation should have started end of January 2016," said Head of Information and Public Relations of the Ministry of Communications and Information Technology Ismail Cawidu in Jakarta, Saturday (16/1).

Unfortunately, Ismail has not been able to explain about the 31 eCommerce initiatives. "I will explain after it's launched. But this is the result of identifying six problem in eCommerce and holds five basic principles to solve the problem," he said.

There are also six issues that are functionally cross-cutting (cross-stakeholder) in the national eCommerce industry namely funding, Taxation, Consumer Protection, Communication Infrastructure, logistics and Human Resources and Education.

While the five basic principles to solve the problems, firstly all Indonesian citizens should be given the opportunity to access and perform eCommerce transactions.

Second, all Indonesian citizens must be equipped with the skills and ability to utilize the benefits of the information economy. Third, Labor Contract Termination (PHK) should be minimized during the transition process towards the Internet economy and additional jobs must be a positive after deducting from the creative destruction.

Fourth, a clear legal framework should be applied to ensure the eCommerce industry that is safe and open, including technology neutrality, transparency, and international consistency.

Fifth, national players especially startups and SMEs should be protected as well as possible. Local businesses and national industrial growth must be a top priority.

"Later, to oversee the road map implementation we will be appointing a Programme Management Unit (PMU), which will coordinate with the ministries / agencies and to monitor the development (progress) of each initiative in the relevant institutions/Ministry," he said.

This formalization is a long process as it was initiated in December 2014. eCommerce roadmap is a follow up from the president’s directives on Indonesian eCommerce industry to give domestic benefits.

The road map initiative was referring to the First Coordination Meeting on March 6, 2015, led by the Coordinating Minister for Economic Affairs Mr Sofyan Djalil at that time.

This road map issued amid the making of the eCommerce bill (RPP) and the revised eCommerce Negative Investment List (DNI). The eCommerce bill also contains unresolved issues about taxes, especially value added tax (VAT).

Reportedly, the government gives special attention to foreign players who have not been taxed in eCommerce.

Meanwhile, to limit foreign ownership in eCommerce, the marketplace would likely to pitch up to 100%. As for SMEs and startups is limited for foreign players by looking at the asset valuation. (es)