Government Will Support Indonesia's E-Commerce Industry, By Shutting It Down

There is a reason why the E-commerce RPP which entered the public test stage by the Ministry of Trade a few days ago irritated e-commerce players in Indonesia. Through this RPP, the Government claims it will support the growth of the e-commerce industry in Indonesia while protecting consumers in the ecosystem.

Although the Ministry of Trade claims to have released the RPP to the public and to associations, idEA, as an association for e-commerce players, has denied receiving the RPP and is currently a heated polemic. One of the articles rumored in the RPP is how anyone who wants to become an online seller or buyer must go through the verification stage or what is commonly called KYC (Know Your Customer).

Concretely, this KYC process requires online sellers and buyers to verify their data by inputting their KTP and NPWP numbers. And if you think it's very absurd, then you can join many e-commerce players who are also still confused about how KYC can help boost the e-commerce industry.

This is what will happen when the RPP officially becomes a PP and is implemented.

When you want to sell goods on sites such as Tokopedia, Bukalapak, Kaskus or OLX, you must first be verified as a legal citizen by providing your KTP/NPWP number. And if you find that too much of a hassle, maybe you can move on to selling your stuff on Facebook, Instagram, eBay or Craigslist.

If you want to buy goods from Tokopedia, Bukalapak, Kaskus or OLX, you must also go through a verification process in the form of an ID card/NPWP before making a transaction. And the Ministry of Commerce does this so that it can track transactions that occur online, while monitoring the tax implications that may occur, and can also protect consumers when fraud or other unwanted things occur. Again, if you think the process is too difficult, you can choose to make purchases on AliExpress, Amazon, eBay, or sites that are not exposed to Indonesian regulations.

For players/owners of e-commerce sites who are exposed to this regulation, I predict that many entities will move overseas. Maybe to Singapore, or Malaysia or other neighboring countries that do not have these regulations. Definitely unethical and non-patriotic.

Somehow, this RPP should be able to encourage the growth of the e-commerce industry in Indonesia. I personally can't keep up with the flow of thoughts from regulators who come out with these kinds of ideas, but I hope one day I can look back and see how this regulation can really boost the e-commerce industry in Indonesia significantly. Until that time comes, it's best if I stay away from the e-commerce industry in this country.