Gov’t to Amend Regulation on Social Media Use for E-Commerce

President Jokowi chairs a limited cabinet meeting on social media use for e-commerce, Monday (09/25) at the Merdeka Palace, Jakarta. (Photo by: PR of Cabinet Secretariat/Agung)

The Government will immediately amend Regulation of Minister of Trade Number 50 of 2020 on Provisions for Business Licensing, Advertising, Development and Supervision of Business Sector in Trading Through Electronic System.

“On the meeting, we discussed regulations on electronic commerce. The decision was that tomorrow we will sign the amended Regulation of Minister of Trade Number 50 of 2020,” Minister of Trade Zulkifli Hassan said after attending a limited cabinet meeting chaired by President Joko “Jokowi” Widodo at the Merdeka Palace, Monday (09/25).

Zulkifli said that the new Regulation will stipulate provisions related to electronic commerce. According to the Minister, the Government only allows social media to facilitate promotions, not transactions.

“Social media [and e-commerce] must be separated, so that the algorithms are not controlled. The provision will prevent the use of personal data for business purposes,” the Minister said.

Regarding the trade of imported goods, the new Regulation will stipulate list of goods permitted to be traded (a positive list). The trade of imported products must also comply with the same rules applied to domestic offline trade.

“Goods from abroad must be treated the same as domestic goods. Food products must have halal certificate, beauty products must have BPOM license, and electronic devices must comply with the specific standard,” the Minister stated.

Zulkifli further said that the Government will also stipulate that transaction of imported goods on digital platforms is only allowed for goods with a value of more than US$100. (DND/UN) (RI/MMB)