The digital industry, particularly small and medium enterprises, needs a room for experiment without regulatory burden.
Katadata | Arief Kamaludin

KATADATA - Trade Ministry is preparing e-commerce regulations in line with the government's plan to revise the Negative Investment List (DNI). Trade Minister Thomas Trikasih Lembong said last week that he has submitted two proposals on e-commerce during a meeting at the Coordinating Ministry for Economic Affairs office.

Lembong further elaborated that his two proposals are related with light touch and protection. Light touch means that the digital industry, particularly small and medium enterprises, needs room to experiment without regulatory burden. While protection is related with the government's guarantee on the experiment conducted by business players. The government, however, needs to be cautious in providing protection. "It must take into account experimentation and innovation," he said in his office on Monday (1/18).

According to Lembong, burdensome and complicated regulations will hamper small business players and make them unable to compete with bigger players that have bigger financial capability. In addition, the government needs to protect innovators especially the SME. "This is to maintain experimentation. Don't blame the people if they are failed in their experiments," he said.

Moreover, Indonesia needs to learn from giant e-commerce companies in the United States and China. They also needs to watch out for competition from e-commerce players in Singapore and the Philippines. Lastly, Lembong expects e-commerce players to abide by offline business regulations related to the Indonesian National Standard (SNI), Food and Drug Supervisory Agency, and Customs.

Miftah Ardhian