The Ministry of Communication and Information to Let Local E-Commerce to Grow

The Indonesian E-commerce industry has apparently succeeded in stealing the regulators’ attention. In fact, the Ministry of Communication and Information has committed to protect the industry.

Further, Rudiantara also plans on gathering all players of the industry at his own residence to discuss about forms of support that his Ministry can provide. He also admitted that he’s currently in the process of communicating with local e-commerce association in order to synergize the needs of those local players to government’s proposed regulation.

During a session at the Ministry building, Rudiantara strictly stated that it takes collaboration from various players to develop proper e-commerce, referring that other ministries, including the Ministry of Finance, Trade, Transportation, and the Creative Economy Board, also have responsibilities in this matter.

This inter-ministry collaboration would make the service even more efficient. Any logistic need, for instance, can be fulfilled easily with the help of the Ministry of Transportation. Meanwhile, the Ministry of Finance may fit in and take care all things related to financial fiscal, as well as the tax for e-commerce.

Regarding the latter, Rudiantara argued that it’s not time for e-commerce to pay taxes. He expected a protection to be done towards the industry before enforcing such regulation, since it’s still regarded as infant industry, thus letting it grow would be a wise option to take.

He also said that he doesn’t want the industry to die before tasting the glory, while claiming that the regulation that deals with the online industry will be released this coming August.

When being asked about payment gateway system, Rudiantara responded by saying that the Bank of Indonesia should be the one who supposedly meets such requirement. He commented:

“Just choose between Finnet, Artajasa, or others, it’s better than picking PayPal, as the bandwidth and money will surely go overseas.”

Whatever the form is, and whoever gets involved in, the regulators, in this case the government, have to be really ready and agile in providing the supports for local e-commerce industry. The time for local players to gaun more attention from the government has come.

The most appropriate policy would be the ones that may really allow the industry (especially SMEs) to grow. Don’t let complicated taxation regulation and licensing block them to their shining glory.