New Digital Commerce Regulation to Protect MSMEs, Consumers

According to reporting from Antara News, the Ministry of Cooperatives and Small and Medium Enterprises (SMEs) deputy for cooperatives and SMEs, Hanung Harimba Rachman, said at a Polemik online discussion on Saturday (16/09/23) that a new digital commerce regulation, which is currently being formulated, is aimed at protecting Micro, Small, and Medium Enterprises (MSMEs), consumers, and e-commerce platforms.

The government is currently revising the Trade Minister’s Regulation Number 50 of 2020 to regulate digital commerce, which Rachman explained is in response to the shift in consumers’ shopping patterns from e-commerce to social commerce, including TikTok, affecting the sales of MSMEs because the selling prices offered on such platforms are deemed very cheap, which could potentially lead to predatory pricing.

According to him, the new regulation is in the harmonization process to harmonize various involved aspects, adding that apart from revising the regulation, the government is also planning to form a task force to regulate digital commerce, report Antara News.

The revision stipulates that sales of products on e-commerce and digital platforms or social commerce require the same permits and taxes.

Then, foreign digital platforms will not be allowed to sell products from their business affiliates. This is because the algorithm on social media makes it easier to attract consumers to buy products affiliated with businesses.

Third, the new regulation also sets a minimum price limit of USD 100 for imported goods. This aims to prevent the entry of products at very cheap prices, which could disrupt the business continuity of domestic MSMEs.

Source: Antara News

Photo by Rodion Kutsaiev on Unsplash

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