The Indonesian government has finally completed the e-commerce roadmap draft, which will form the basis for future guidelines regulating the sector.
The roadmap will cover critical aspects of the industry such as funding, taxation, communication infrastructure, logistics, cyber security, consumer protection and education.
The e-commerce sector, which is currently highly regulated in Indonesia, has been a subject of heated discussion in the public sphere,
The roadmap is expected to be launched in February in the form of government regulation.
Minister for Information and Communication Rudiantara said, at a press conference, “these are the seven points that the government will work on in order to achieve the e-commerce transaction value of $130 billion by 2020.”
He said the government will review these seven key points from time to time and will issue implementing policies in the form Presidential Regulation or ministerial decrees.
The funding issue of e-commerce will be covered under the Negative Investment List (DNI), which is expected to be announced by the government soon.
“The main point is the affirmative policy on SMEs (small and medium enterprises), whereby foreign investors may invest in large e-commerce, while small e-commerce players are closed for foreign investors,” said Rudiantara.
Asked whether foreign investors’ ownership in e-commerce will be capped, he said the issue has been omitted from the e-commerce roadmap. The ownership issue will be regulated in the DNI.
Earlier, the National Investment Coordinating Board (BKPM) said it was considering foreign holdings in domestic Marketplace to be capped at a maximum of 67 per cent
As for tax issue, the roadmap suggests simple and smaller tax rate for e-commerce players. The tax system could be different between small and large players. “The government is currently considering to delay imposing tax on startups,” he said.
The Finance Ministry is currently drafting tax mechanism for e-commerce companies and transactions.