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Government to issue eCommerce Roadmap Regulation

12:37:45 | 14 Feb 2016
Government to issue eCommerce Roadmap Regulation
Ilustrasi (dok)
JAKARTA (IndoTelko) - The government will prepare a Presidential Decree on the national eCommerce roadmap to encourage the digital economy.

Coordinating Minister for Economic Affairs Darmin Nasution have decided several things on the matter in a coordination meeting which attended by the Minister of Communication and Information Rudiantara, Trade Minister Tom Lembong, Minister of Industry Saleh Husin, Chief of Creative Economy Agency Triawan Munaf, as well as representatives from Bank Indonesia and the Financial Services Authority on Wednesday (10/2).

First, is the determination of eCommerce Roadmap. Second, the establishment of the Steering Committee, Executive Team and the Project Management Office (PMO) eCommerce. The PMO will consist of professionals to oversee and monitor the implementation of eCommerce.

Third, the preparation of a draft regulation on the eCommerce Roadmap that encompasses both the above matters and financing.

"The scope of this eCommerce is the government and public goods. It should really be a national program that is not the government’s work alone, but to encourage the private sector and the community, "Nasution said in a statement.

Rudiantara said that funding issues, taxation, and protection of the public into a few things should be supported, particularly related to startup companies.

He said the government is targeting the seven priorities in the roadmap will boost eCommerce transactions to US $ 130 billion in 2020.

According to him, the roadmap will adopt a live touch regulation and not purely licensing. According to these documents, startups are required to register their business first. Before being registered, there will be proposed accreditation.

Head of the Creative Economy (Bekraf) Triawan Munaf give attention to tax incentives for investors and the provision of a grant scheme. "Hopefully, there is provision for the grant scheme. Hopefully there are grants for creative economy for those doing business incubation," said Triawan.

There is also support for his proposed crowdfunding for business of banking. "There were talks with the Financial Service Authority (OJK) about crowdfunding which is important to be developed, based on equity, debt, and charity. If the charity has no ownership with the shares then it will not be regulated by the OJK. If the nature is without inclusion of the equity then it will be arranged. We also concerns about royalty, one of them is how the sorftware to levy royalty that is being developed by the SMEs,” Triawan explains.

Separately, the Executive Director of Lippo Group John Riady said the opening of the foreign investment is needen by local eCommerce players. "If we want a player like Alibaba, we need foreign investment. Mataharimall alone needs $ 500 million for future development and is partly derived from the foreign trust," he said.

Indonesia currently is being developing the digital economy. The potential of 255.5 million mobile users with an active Internet users based on data from We Are Social as many as 88.8 million to the initial capital to expand in the future. (es)

The following are the seven strategic issues discussed in the eCommerce roadmap:

1. Logistics
Utilization of the National Logistics System (Sislognas) blueprint to increase the eCommerce logistic delivery speed and reduces shipping costs. The government helps the development of the outsourcing of logistics facilities for the development of eCommerce eCommerce particularly for SMEs, strengthening local courier company / national competitiveness.

2. Funding
Finalization of the eCommerced draft, form the Public Service Agency (BLU) to distribute government grants / Universal Service Obligation / government subsidies to the digital SMEs and startup eCommerce platform, optimizing the financial institution as channeling the Micro Credist Program (KUR) scheme in providing grants for the implementation of a business incubator, a scheme providing grants whose source comes from SOE’s CSR, equity participation schemes through venture capital, seed capital provision scheme / "foster parents" of the Information and Communication Technology player, policy development fund gathering as an alternative funding including risk management framework.

3. Consumer Protection
Building consumer confidence through regulation, protection of industry players, simplification of registration of licensing business for the perpetrators of eCommerce, develop national Payment Gateway gradually to improve payment services electronic retailing (including eCommerce), implementation incubation program for startup to help their development, particularly at the early stage, prepare the talent needs in order to sustain the eCommerce ecosystem.

4. Communications Infrastructure
Increased national communications infrastructure as the backbone for the growth of the eCommerce industry.

5. Taxes
Simplify the tax obligations or tax for the startup eCommerce players, tax incentives for eCommerce investors and tax incentives for eCommerce startups, and equality of tax treatment in the form of an obligation to register themselves including foreign businesses.

6. Education and Human Resources
Provide education for the entire ecosystem of eCommerce, organizing national awareness campaign on eCommerce through online and offline mediums throughout Indonesia, the provision of education eCommerce for policy makers to gain an understanding of eCommerce role to the central and regiomal government, improving the infrastructure of the national communications as the backbone of eCommerce industrial growth.

GCG BUMN
7. Cyber Security
Increased awareness of online merchants and the public against cyber crimes and the perpetrators of the importance of the electronic transactions security.

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