With the rapid development of the global e-commerce market, Indonesia’s e-commerce market is also growing. In order to promote the healthy development of its e-commerce market, the Indonesian government has adopted a series of new measures and launched a new policy for Indonesia’s e-commerce. So, what is Indonesia’s new e-commerce policy? This article will introduce this in detail.
1. Introduction and objectives.
Indonesia’s new e-commerce policy was released in June 2020, which includes a number of measures aimed at promoting the construction and development of the e-commerce market and providing better services for e-commerce companies. The goal of the New Deal is to create an e-commerce market that is fairer, more transparent, more trustworthy, sustainable, and promotes economic growth. The Indonesian government has encouraged the development of e-commerce companies through the New Deal, provided technical, financial and policy support, stimulated innovation and competition in the e-commerce market, and also improved social security and employment opportunities.
2. New Deal Measures.
1. E-commerce enterprise registration.
The new policy stipulates that all companies operating e-commerce must register in Indonesia to strengthen the supervision of e-commerce companies. This will also help standardize the e-commerce market and protect consumer rights.
2. Regulations on foreign investors.
The new policy clearly stipulates investment limits for foreign-funded e-commerce companies. Foreign investment cannot exceed 80% to ensure the domestic dominance of the e-commerce market. In addition, foreign e-commerce companies operating in the Indonesian market need to obtain a license from the trade department.
3. Compliance tax mechanism.
The New Deal stipulates that e-commerce companies must pay corporate income tax, value-added tax and other taxes to ensure a fair competitive tax environment and incorporate legal taxation mechanisms.
4. E-commerce platforms supervise compliance.
In order to improve market compliance, the new policy ensures that e-commerce platforms supervise merchants, including the quality, safety, and guarantee of products published on the platform and that the products on sale are consistent with the descriptions.
5. E-commerce exclusive area.
The new policy stipulates that e-commerce exclusive zones will be established to create a business environment suitable for e-commerce and encourage the development of e-commerce companies. The exclusive zone will also provide a series of investment support, talent training, public infrastructure, etc. to build a platform for the rapid development of the digital economy.
3. Impact on e-commerce.
1. The New Deal has had a positive impact on the Indonesian e-commerce market. First of all, the New Deal strengthens market management, further standardizes the Indonesian e-commerce market, protects the rights and interests of consumers, improves the sense of responsibility of e-commerce platforms, and brings the e-commerce market into a virtuous cycle.
2. The New Deal optimizes the global layout. Through the New Deal, it ensures that e-commerce companies can better enter the Indonesian market, promotes the development of import trade, and assists the development of the Indonesian economy.
3. The new policy will promote the innovation and development of the e-commerce market and help the Indonesian e-commerce market to further mature and grow. E-commerce companies and merchants will have an easier time entering the market and succeeding in fierce competition. Generally speaking, Indonesia’s new e-commerce policy will have a long-term impact on the e-commerce market: the new policy will further promote the development of the digital economy, promote the legislative framework for innovation in the digital field, and create Indonesia’s digital economic ecosystem.
4. After the implementation of the New Deal.
After the implementation of the New Deal, the Indonesian e-commerce market has further developed and gradually entered a stage of diversified development. According to the 44th “Statistical Report on China’s Internet Development” released by the China Internet Information Center, the total number of Indonesian Internet users exceeds 100 million, and the Internet penetration rate exceeds 40%. On this basis, Indonesia’s e-commerce market is gaining momentum as never before.
As the leader in Indonesia’s e-commerce market, Indonesian e-commerce platform Blibli is one of the beneficiaries. It is understood that after the implementation of the New Deal, Blibli launched a “post-pay” transaction method, that is, users receive the goods first and then pay, and then settle after receiving favorable comments, which effectively reduces the rate of fraud and complaints. In addition, Blibli has also launched the “Good Neighbor” program, allowing influential users to become community leaders and serve as important messengers for brand promotion and information collection, further enhancing Blibli’s user stickiness and brand reputation. After the implementation of the New Deal, Indonesian e-commerce platforms have continued to use intelligent technology to improve service experience and efficiency, further attracting consumers. For example, Shopee uses voice interaction technology and introduces intelligent customer service, which can help users solve problems quickly and greatly improve the customer experience of the platform.
In summary, Indonesia’s new e-commerce policy is a series of policies and measures formulated by the Indonesian government for the development of the e-commerce industry. The implementation of the new policy will play a positive role in maintaining the national business environment, promoting innovation and development of the digital economy, strengthening small and medium-sized enterprises and supporting the industrial chain, and will further promote the vigorous development of the Indonesian e-commerce market. Under the guidance of the New Deal, major e-commerce companies should accelerate technology upgrades, improve service quality, optimize business models, and contribute to creating a more prosperous e-commerce industry.