Ministry of Cooperatives and SMEs and KPPU agree to prepare regulations related to digital trade: Okezone techno

JAKARTA – In order to create rules that support a healthy climate of competition between businesses, especially for SMEs in the era of digital transformation. Minister of Cooperatives and SMEs (MenKopUKM), Teten Masduki, collaborated with the Chairman of the Corporate Competition Surveillance Commission (KPPU), M Afif Hasbullah.

According to Minister Teten, current regulations are not strong enough to regulate the country’s digital market.

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“For this reason we will jointly regulate online trade, the Ministry of Cooperatives and SMEs (KemenKopUKM) from the point of view of market competition interests, we hope to create a fair climate, while the KPPU is responsible for monitoring the indications and the potential for trade monopolies,” Teten said in a written statement cited Saturday (7/10/2023).

Furthermore, the current condition is that on digital platforms there is still discriminatory treatment towards independent sellers (shadow ban).

For example, an algorithmic monopoly can direct consumers to the products of the platform operating company or its affiliates.

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“This discriminatory treatment is carried out using special technology so that it is easy for platform operators to read traffic and consumer behavior. Then consumers are directed to buy their products. “On the other hand, MSMEs are also forced to use their delivery services,” he said.

For this reason, says MenKopUKM, digital market regulation is necessary to create a fairer digital ecosystem. Teten said that to solve these problems, at least three aspects need to be regulated.

First, platform regulation needs to be addressed, especially platform integration, which means regulating data algorithms so that there is no deviation.

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“Don’t let this global platform grow stronger without proper regulation until the state can no longer control it,” he said.

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In addition to this, he explained that the traffic of people using social media must be differentiated from that of people entering e-commerce, as when combined they are vulnerable to the misuse of personal data.

“Personal data that was previously not intended for business is used as market intelligence,” he said.

Secondly, it is necessary to strengthen the commercial aspect. That is, create fair commercial competition so that it does not give rise to a market monopoly. And third, import-related regulations, strengthening, regulating and limiting the flow of goods in and out.

“Goods entering Indonesia must meet Indonesian commodity standards, and a minimum goods price of more than US$100 per unit is required from the country of origin of the goods to the online border,” Teten stressed.

Meanwhile, KPPU President M Afif Hasbullah said that the development of e-commerce, social media and all its tools is very broad, but apparently Indonesia still does not have regulations covering in detail digital commerce.

“We have agreed with MenKopUKM to be jointly involved in completing the national strategy for digital transformation,” Afif said.

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By bringing the largest turnover, Shopee becomes the most used e-commerce by Brand Local and SMEsHe admitted that currently the KPPU rules are no longer adequate because they regulate conventional trade, so in the future it is possible to draft a Law (UU) on digital markets.

“Today our goal is to draw attention to the legislation of the digital market and then we hope that our role can also be involved,” he concluded.