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.
Arif said the desire and effort of the president must be appreciated and supported because the entry of investment in Indonesia will further enhance the growth of national economic opportunities.
"Moreover, this also aims to encourage the advancement of SMEs in Indonesia that are growing and going international, so that our products and industry will become more competitive, qualified and recognized by the global society," said Arif.
However, he noted that the President's desire to develop cooperation with a giant Chinese e-commerce firm must also be done after consultations and formulating a roadmap so as not to disadvantage Indonesia.
The expected desire can eventually remain unrealized if Indonesia does not have the economic bargaining power.
"Therefore, KEIN has the task of providing proposals and a special economic policy roadmap for cooperation in the field of e-commerce, which will be carried out by the President," said Arif.
His first suggestions and notes concerned taxes imposed on all e-commerce companies willing to invest in Indonesia. Arif said there must be strict supervision, for example, related to taxation.
This is given the fact that e-commerce transactions are done online and it is possible to not go through the banking system in Indonesia. If necessary, a special regulation should be passed on e-commerce, which applies to all, not just for one company.
"We also hope that there is potential tax revenue to be earned from online transactions, which is now a norm and can be earned from transactions or advertising," he stated.
The next thing according to Arif, concerns the use of Indonesian workers in the investment process. Arif suggested that Indonesian workers should get a bigger quota so that it creates new jobs for the people of Indonesia.
"That way, the process of technology transfer can also be faster," he explained.
The last advice Arif had was that foreign e-commerce companies should be committed to assisting in the development and empowerment of SMEs in Indonesia and did not want that foreign investment in e-commerce remains confined to the marketing SME products only.
But the government should also ask the companies to assist and develop techniques and strategies for Indonesian SMEs so that they are able to successfully compete at the global level.
"So if the output of e-commerce investment is obviously going to stand for the Indonesian nation and benefit the people of Indonesia, we should support it. Of course, we should have formulated regulations for it," said Arif.
After all, the international trade is rising with the ASEAN Economic Community mechanism kicking in as it minimizes obstacles faced by those undertaking economic activities across the region.
This trade is supported by several factors, such as regulations and supporting means, one of which is information technology.
Thus, an appropriate technology is needed to improve the international trade's quality and quantity through effective and accountable flow of goods.
Therefore, in order to boost e-commerce business development, Indonesia hosted the 53rd Meeting of the Pan-Asian e-Commerce Alliance (PAA) in Bandung, West Java, on August 9-12, 2016. Eleven countries that joined the PAA, a cooperative forum of e-Commerce, e-Business solution and trade facilitator, took part in the meeting.
"This year, PT EDI is hosting the meeting," the President Director of PT Electronic Data Interchange (EDI) Indonesia, E Helmi Wantoso, said referring to meeting.
The eleven countries are China (CIECC), Taiwan (Trade-Van), Hong Kong SAR (TradeLink), Japan (NACCS), South Korea (KTNET), Macau SAR (TEDMEV), Malaysia (DagangNet), Singapore (Crimson Logic), Thailand (CAT Telecom), the Philippines (InterCommerce) and Indonesia (PT EDI Indonesia).
One of the topics discussed at the meeting was the ongoing development of technology in Asia. They discussed the feasibility of applying a single language while sharing data, such as in trading.
The PAA meeting was put in place a technological system based on one platform to facilitate communication among the countries. In other words, they are using international program language.
According to Helmi, PAA is an important alliance for the Asia-Pacific countries to ensure safe and effective Cross-Border Trading.
Meanwhile, the Chairman of PAA, Francis Norman O Lopez, said the B2B (business to business) e-commerce is growing rapidly.
Since 2000, PAA has been developing and coordinating e-Commerce as a means of enhancing international trading, in line with the organization's vision to promote and provide safe and trustable information technology infrastructure and facilities.
PT EDI Indonesia is a pioneer in developing electronic data sharing in Indonesia. It is a subsidiary of the Indonesian shipyard company of PT Pelabuhan Indonesia II.***3***
(A014/INE)EDITED BY INE(T.A014/A/BESSR/A. Abdussalam) 08-09-2016 20:33:4 |
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