Indonesia plans to restrict online retailers, especially e-commerce, from entering the country, according to Indonesian Minister Cooperatives and SMEs Teten Masduki.

Teten said that the ministry has suggested changes to Trade Minister Regulation No.50/2020 on business permits, marketing, and overseeing trade across electronic systems or PMSE.

The minister underlined that this plan is needed to better maintain the products that are marketed domestically.

There are currently many foreign e-commerce that are able to directly conduct sales in the Southeast Asian nation, but the products fail to meet the Indonesian National Standard (SNI) or marketing authorisation from the Food and Drug Monitoring Agency (BPOM), Teten was quoted by local media as saying at a press conference on December 26.

He argued that any international e-commerce should basically be allowed to enter the Indonesian market but must be required to establish a company in Indonesia.

Teten said he hopes that as the restriction policy is implemented in the future, micro, small- and medium-size enterprises will not be left out or unable to compete with imported products sold on foreign e-commerce platforms, which are mostly cheaper compared to domestic goods.

He added that the Indonesian government also plans to involve domestic e-commerce platform owners in making programmes that would be able to fend off price predators.

Source: VNA