Indonesia to Impose a regulation to safeguard the interests of small and medium enterprises by placing restrictions, on online sales of imported goods valued below $100. This measure will be applicable to both marketplaces and retailers operating on social media platforms. As the country’s e-commerce industry flourished, reaching a value of $59 billion in the year authorities are now working collaboratively to enforce these rules and anticipate potential effects, on the sector.
Indonesia is set to impose restrictions, on the sale of imported goods valued below $100 as announced by Trade Minister Zulkifli Hasan on Friday. This move might have an impact on the thriving e-commerce sector in the country. The new regulations will be applicable to both marketplaces and retailers operating on social media platforms. The primary objective behind these measures is to safeguard the interests of medium enterprises within Indonesia.
By August 1 ministries are expected to finalize the changes to existing rules, including the requirement for imported goods to obtain a license known as the Indonesian National Standard (SNI).
However specific details regarding how Southeast Asia’s largest economy with over 270 million people intends to enforce this measure were not disclosed by Minister Zulkifli.
According to a report released in 2022 by Google, Temasek Holdings and Bain & Company Indonesia’s e-commerce sector reached a merchandise value of $59 billion per year. It is projected that this figure will rise to $95 billion by 2025.
President Joko Widodo has expressed concerns about predatory pricing practices associated with Chinese-made goods. He has urged consumers to prioritize products, over imports.
TikTok, which currently has two million sellers, in Indonesia recently stated that it does not intend to expand its border business in the country. This decision came after officials raised concerns about the flood of products into Indonesia due, to TikTok’s e-commerce efforts.
