Medan City Government Waits For Kemenkop UKM's Policy On S-commerce

The photo archive - Medan MSME actors are working on a craft in the form of a ring at one of the "MSME Service Month" 2023 exhibition booths in Medan, Wednesday (28/6/2023). (ANTARA/Michael Siahaan)

MEDAN - The Medan City Government (Pemkot) is waiting for a policy from the Ministry of Cooperatives and SMEs (Kemenkop UKM) regarding S-commerce (social commerce), a social media application that is also used as a place for buying and selling, before taking a stand.

"We are waiting for what kind of policy. Will it be outlined in the form of ministerial regulations or what," said Head of Cooperatives and SMEs for the Cooperatives, SMEs, Industry and Trade Office of Medan Anwar Syarif, quoted by ANTARA, Tuesday, September 19.

Anwar said that his party continues to follow developments regarding the social commerce phenomenon which is now being discussed at the central government level.

However, he admitted that he had not received any complaints regarding the "s-commerce" from the Medan MSME players.

"Because there are indeed many MSME actors who use social media to sell, such as through Facebook or WhatsApp. So at this time our position is waiting for directions from the government," said Anwar.

The use of social media to conduct electronic trade transactions has become a hot issue discussed by the government because it is considered to have the potential to harm national MSME players.

Minister of Cooperatives and SMEs Teten Masduki stated that "s-commerce" often sells imported goods at prices far below the market price or "predatory pricing".

The government is also revising the Regulation of the Minister of Trade (Permendag) Number 50 of 2020 to regulate digital trade.

The regulatory update is in response to changes in consumer shopping patterns from e-commerce to social commerce applications.