Before allowed to operate, online businesses in Indonesia will be required to register and secure permits in an effort to enhance supervision on online trading according to a new government draft regulation. The draft, which is currently being discussed by the Indonesian Trade Ministry, the Communication and Information Ministry, and the Law and Human Rights Ministry, is expected to be issued before February 2016. Foreign businesses engaged in online trading activities in Indonesia will also be required to register and obtain necessary permits.
The draft aims to protect both traders and consumers who are engaged in online trading practices in Indonesia. According to Fetnayeti, Director for Enterprise Development at the Indonesian Trade Ministry, said new rules are necessary as online businesses are currently not being supervised by the Indonesian government. Fetnayeti was quoted saying “after the regulation has been issued, e-commerce traders are required to obtain a permit at the Communication and Information Ministry before starting an online business.”
The draft regulation divides online businesses into three categories: merchants, electronic transaction providers and intermediary service providers.