Government Prepares New Regulations on Import Prohibitions for E-commerce Items Under Rp1.5 Million

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As part of its efforts to promote a level playing field and protect domestic industries, the Indonesian government is in the process of crafting new regulations that will govern the prohibition of importing goods with a value below Rp1.5 million on various e-commerce platforms. 

This significant step towards fostering a fair trade environment aims to safeguard local businesses and prioritize the growth of domestic industries.

The prohibition of importing goods below the specified threshold will be implemented through a revision of the existing Minister of Trade Regulation No. 50 of 2020, which encompasses various provisions related to licensing, advertising, supervision, and development of business operations conducted through electronic systems. 

The envisioned changes seek to ensure that foreign traders comply with the new guidelines, and those found in violation will face consequences in line with the regulations.

One crucial aspect of the new regulation is the establishment of a minimum price limit for imported products that are traded within the e-commerce marketplace. Products with a price below US$100, or approximately Rp1.5 million, will be barred from sale by foreign merchants on both e-commerce and social commerce platforms. 

This measure is geared towards preventing the influx of cheap imported goods that may pose a threat to local industries and undermine their competitiveness.

It is worth noting that the current regulations, aimed at supporting the growth of Small and Medium-sized Enterprises (UMKM), have not explicitly set a minimum price threshold for imported goods. However, the new revision will rectify this by offering more robust protection for domestic products, which will further contribute to the sustainability and prosperity of local businesses.

The implementation of this new policy reflects the government’s determination to prioritize locally produced goods and services. By adhering to the principles laid out in Ministerial Regulation No. 50/2022, which focuses on the prioritization of domestic products, the government is taking proactive steps to support the growth of homegrown industries and ensure their competitiveness in the global market.

The Minister of Cooperatives and SMEs, Teten Masduki, emphasized that the minimum price policy for imported goods is an integral part of the government’s strategy to safeguard domestic products. 

By setting a floor price of Rp1.5 million, the government aims to prevent the penetration of inexpensive imported products that could potentially undercut local businesses. Furthermore, Teten underscored the capacity of domestic industries to manufacture products priced below the threshold, demonstrating the country’s self-sufficiency and potential for economic growth.

In collaboration with the Minister of Trade, Zulkifli Hasan, discussions have been held to fine-tune the revised regulations, taking into account the rapidly evolving landscape of social commerce. The aim is to ensure that the new guidelines not only protect electronic and e-commerce platforms but also encompass social commerce platforms, offering comprehensive protection for SMEs and consumers alike.

The Ministry of Trade has successfully completed the revision process, and the revised regulations are currently undergoing harmonization. 

Minister Zulkifli Hasan has set an ambitious target of issuing the updated regulations in September 2023, signaling the government’s commitment to swift action and effective implementation.

The proposed prohibition on the sale of imported goods below US$100 on e-commerce and social commerce platforms signifies a significant stride towards enhancing Indonesia’s economic sovereignty and creating a conducive environment for domestic industries to thrive. 

As the country embarks on this journey towards economic self-reliance, it aligns with the broader vision of achieving sustainable economic growth and development for the nation.