GOVERNMENT NEEDS TO IMPOSE TAX ON E-COMMERCE INDUSTRY

by Andi Abdussalam

Jakarta, April 17 (Antara) - Transaction trends are currently shifting from the conventional system of direct cash payment to an online cashless system by capitalizing on the latest technology used in online trade or e-commerce activities.         Hence, the government believes that the e-commerce industry is one of the business sectors having high future prospects, and to this end, it is drafting an e-commerce regulation to ensure equality between conventional and e-commerce traders.         Vice President Jusuf Kalla (JK) and Industry Minister Airlangga Hartarto held a meeting on Thursday to discuss matters related to electronic trade or e-commerce development.         "JK has just met with the ministers to discuss the roadmap of e-commerce," Hartarto stated at the office of Muhammadiyah, Indonesia's second-largest Muslim organization, in Jakarta on Thursday (April 12).         "We discussed the idea of imposing a half percent tax on e-commerce," Hartarto remarked.         The minister noted that the tax will be applied on business entities that have been classified as Small and Medium Enterprises (SMEs). The SMEs will be given three years before finally following the applicable taxation.

CASHLESS TRANSACTIONS GAIN POPULARITY AMONG INDONESIANS

by Andi Abdussalam

Jakarta, Jan 10 (Antara) - Advancements in digital technology have offered a more convenient and practical cashless transaction facility without the need to carry heaps of banknotes in the wallet.         There is an increasing trend among Indonesia's millennial youth and also the elderly generation to make electronic payments through cashless transactions using debit cards, credit cards, and electronic money, or e-money, among others.     Electronic money transactions showed a significant growth until the end of November 2017, with a total nominal value of Rp1.64 trillion, up 98 percent year-on-year (yoy) compared with November 2016.         Bank Indonesia's (BI's) statistics in Jakarta on Tuesday indicated a nominal growth of 98 percent and a rise in volume of 93 percent to 128.51 million transactions, from 79.22 million recorded in November 2016.         With regard to the amount of electronic money in circulation until November 2017, BI has recorded 113.72 million transactions, or an increase of 130 percent from 49.41 million recorded during the same period in the previous year.

ONLINE SHOPPING A THREAT TO RETAILERS?

By Andi Abdussalam

Jakarta, Aug 5 (Antara) - Online trading system or e-commerce is growing rapidly in recent years as it offers a special service for consumers to shop or order goods through online media.         But how far online business affects retail business still needs further study. Head of National Development Planning Agency (Bappenas) Bambang Brodjonegoro has expressed the need to officially register online trading transactions.         Data on online trading transactions is needed to know their impact on the economic growth, especially at a time when the retail business sector is facing a gloomy condition amid efforts to improve the macroeconomic indicators.         There are mixed views that the growth of online shopping is posing a threat to the retail business, but some say it would not have a serious impact on retailers as long as the latter continue to make innovations.          According to macroeconomist Dr James Adam of the International Fund for Agricultural Development (IFAD), the online trading transactions, which are gaining a popular trend in recent days, is threatening workers at retailer businesses, which are still relying on the conventional shopping system.

GOVT TAKING STEPS TO TACKLE GROWTH OF E-COMMERCE INDUSTRY

by Andi Abdussalam

Jakarta, Nov 11 (Antara) - The volume of e-commerce transactions in Indonesia is still relatively small but the government is taking anticipatory steps in the face of e-commerce industry growth as it is developing as a global trade model.         Indonesia's e-commerce transactions still account for about one to two percent of retailer transactions or much lower than the global average of eight percent. However, it is predicted that e-commerce transactions in Indonesia will increase drastically from US$12 billion in 2014 to about US$24.6 billion this year.         Therefore, the government sees that the e-commerce industry is one of the business sectors that has good prospects in the future, and for this it is issuing an e-commerce development roadmap through an economic policy package.         The roadmap is appearing in the 14th economic policy package announced by the government on Thursday, November 10, 2016.         "The policy package is aimed at encouraging people all over Indonesia to expand their economic activities efficiently and to connect them to the rest of the world. With this roadmap, they will be able to enhance their business in a better way," Coordinating Minister for Economic Affairs Darmin Nasution said while announcing the package at the Presidential Office along with Communication and Information Minister Rudiantara and Cabinet Secretary Pramono Anung.

INDONESIA SEEKS FOREIGN INVESTMENT IN E-COMMERCE

by Andi Abdussalam

Jakarta, Sept 8 (Antara) - The Indonesian government is considering boosting the development of e-commerce in the country and for that purpose it is seeking to attract foreign investment to the sector.            Indonesia's interest in developing e-commerce in the country was reflected when President Joko Widodo (Jokowi) recently offered a chance to foreign investors to invest in the sector.            The National Economic and Industry Committee (KEIN) supports the initiatives of President Widodo to attract e-commerce investment to Indonesia when he met with investors on the sidelines of the G-20 meeting some time ago in China.            "Of course KEIN supports such efforts, since the agenda of the President is to obviously discuss investment cooperation to market Indonesian products abroad. It is expected to improve the quality of Small Micro Medium Enterprises (SMEs) and makes them well-known globally through an e-commerce company," said KEIN Vice Chairman Arif Budimanta in an official statement received by Antara on Thursday.