MNP Clients’ Alert – Indonesia Bans E-Commerce Activities on Social Media
Overview of Minister of Trade (MOT) Regulation No. 31 of 2023
Since 2022, the growth rate of e-commerce activities on social media platforms in Indonesia has been rapidly increasing. Instagram, TikTok, Facebook, just to name a few, launched its own version of e-commerce shop.
In 2022, nearly USD 52 billion sales were traded in Indonesia and 5% of such figures alone took place on TikTok.
On 25 September 2023, MOT enacted the Regulation No. 31 of 2023 regarding the Business Licensing, Advertisement, Development and Supervisory of Business Entities in Trading through Electronic System (“MOT 31/2023”).
In its preamble, MOT 31/2023 emphasizes the needs to support the growth of micro, small, and middle traders within the dynamic growth of e-commerce sales. This is in line with the concern that was previously shared by the Indonesian government that the uncontrollable growth of e-commerce activities especially with additional channels through social media platforms will eventually affect other micro and small traders in the country.
MOT 31/2023 defines trading through electronic system as trading activities which transaction is completed through electronic equipment and processes. Electronic system is defined as the electronic equipment and processes which are aimed to prepare, collect, process, analyze, store, display, announce, send, and/or disseminate electronic information.
Further, goods that are subjected to the provisions of MOT 31/2023 to include all goods, whether tangible or intangible, whether move or immovable goods, whether can be fully consumed or otherwise, and whether can be traded, consumed, used or utilized by the consumer or business entity.
Moreover, MOT 31/2023 provides that all entities including merchant and intermediary service (whether based in Indonesia or offshore) are subjected to the requirements under MOT 31/2023 irrespective of the business model (e.g., marketplace, price comparison platform, daily deals).
Under MOT 31/2023, all entities subjected by the provisions of MOT 31/2023 must acquire business license to perform activities in trading sector. The business license should be obtained in accordance with the current risk-based licensing regime in Indonesia. Exceptions available for any parties who is not direct beneficiary of the transaction or not directly involved within the contractual relationship of the parties to the electronic transaction.
The licensing requirements are followed by technical requirements from goods classification details to sufficient disclosure to the customers. Sanctions for failure to comply range from written warning to business license revocation.
Effectively, the licensing requirement imposed by MOT 31/2023 bans all e-commerce activities on social media platform on immediate basis. As at the date of the alert, TikTok and some other social media platforms have formally announced their intention to fully comply with MOT 31/2023 and cease e-commerce facilities.
The ban reflects the movement of Indonesian government in flexing its regulatory muscles to support its economic interest, in this case being to protect the micro and small traders in the nation.
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Read article about ChatCPT – Privacy Point of View here.
Indonesian ver.
11 Oktober 2023
Peringatan Klien MNP – Indonesia Larang Aktivitas E-Commerce di Media Sosial
Sekilas Peraturan Menteri Perdagangan (Mendag) Nomor 31 Tahun 2023
Sejak tahun 2022, laju pertumbuhan aktivitas e-commerce di platform media sosial di Indonesia meningkat pesat. Instagram, TikTok, Facebook, dan lain-lain, meluncurkan toko e-commerce versinya sendiri.
Pada tahun 2022, hampir USD 52 miliar penjualan diperdagangkan di Indonesia dan 5% dari jumlah tersebut terjadi di TikTok.
Pada tanggal 25 September 2023, Mendag menetapkan Peraturan Nomor 31 Tahun 2023 tentang Perizinan Berusaha, Periklanan, Pembinaan, dan Pengawasan Pelaku Usaha dalam Perdagangan melalui Sistem Elektronik (“Permendag 31/2023”).
Dalam pembukaannya, Permendag 31/2023 menekankan perlunya mendukung pertumbuhan pedagang mikro, kecil, dan menengah dalam dinamika pertumbuhan penjualan e-commerce. Hal ini sejalan dengan kekhawatiran yang sebelumnya disampaikan oleh pemerintah Indonesia bahwa pertumbuhan aktivitas e-commerce yang tidak terkendali, apalagi dengan tambahan saluran melalui platform media sosial, pada akhirnya akan berdampak pada pedagang mikro dan kecil lainnya di tanah air.
Permendag 31/2023 mendefinisikan perdagangan melalui sistem elektronik sebagai kegiatan perdagangan yang transaksinya dilakukan melalui peralatan dan proses elektronik. Sistem elektronik diartikan sebagai peralatan dan proses elektronik yang bertujuan untuk menyiapkan, mengumpulkan, mengolah, menganalisis, menyimpan, menampilkan, mengumumkan, mengirimkan, dan/atau menyebarkan informasi elektronik.
Selanjutnya, barang-barang yang tunduk pada ketentuan Permendag 31/2023 meliputi semua barang, baik berwujud maupun tidak berwujud, baik barang bergerak maupun barang tidak bergerak, baik yang dapat dikonsumsi seluruhnya maupun tidak, baik yang dapat diperdagangkan, dikonsumsi, dipakai atau dimanfaatkan oleh konsumen atau badan usaha.
Selain itu, Permendag 31/2023 mengatur bahwa semua entitas termasuk pedagang dan jasa perantara (baik yang berbasis di Indonesia atau di luar negeri) tunduk pada persyaratan dalam Permendag 31/2023 terlepas dari model bisnisnya (misalnya, pasar, platform perbandingan harga, transaksi harian).
Berdasarkan Permendag 31/2023, semua badan yang tunduk pada ketentuan Permendag 31/2023 harus memperoleh izin usaha untuk melakukan kegiatan di bidang perdagangan. Izin usaha harus diperoleh sesuai dengan rezim perizinan berbasis risiko yang berlaku di Indonesia. Pengecualian tersedia bagi pihak mana pun yang bukan penerima manfaat langsung dari transaksi atau tidak terlibat langsung dalam hubungan kontraktual para pihak dalam transaksi elektronik.
Persyaratan perizinan diikuti dengan persyaratan teknis mulai dari rincian klasifikasi barang hingga pengungkapan yang memadai kepada pelanggan. Sanksi jika tidak mematuhinya mulai dari teguran tertulis hingga pencabutan izin usaha.
Secara efektif, persyaratan perizinan yang diberlakukan oleh Permendag 31/2023 melarang semua aktivitas e-commerce di platform media sosial untuk segera dilarang. Pada tanggal peringatan ini dikeluarkan, TikTok dan beberapa platform media sosial lainnya telah secara resmi mengumumkan niat mereka untuk sepenuhnya mematuhi Permendag 31/2023 dan menghentikan fasilitas e-commerce.
Larangan ini mencerminkan upaya pemerintah Indonesia dalam memperkuat regulasi untuk mendukung kepentingan ekonomi, dalam hal ini melindungi pedagang mikro dan kecil di negara ini.
Unduh versi PDF di sini.
