Indonesia to launch comprehensive e-commerce roadmap

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.

Also Read : Indonesia scraps e-commerce from negative list but caps foreign ownership at 33%

Indonesia plans to scrap e-commerce from negative investment list, move will allow more foreign funding for online businesses

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.