The Ministry Of Trade Asks E-commerce To Obey The Regulations Of Competition For Shipping Services

Director of Trade Through Electronic Systems and Services Trading Ministry Rifan Ardianto. (Photo: ANTARA)

JAKARTA - Director of Trade Through the Electronic System and Services Trading of the Ministry of Trade (Kemendag) Rifan Ardianto asked the e-commerce platform to comply with the rules of business competition for shipping services

According to him, e-commerce platforms must cooperate with delivery service providers by prioritizing the principle of healthy competition.

He emphasized the importance of following statutory regulations, including regulations from the Ministry of Information and Communication (Kominfo) regarding Commercial Post Service and laws related to business competition.

"Basically, PMSE organizers or e-commerce platforms can cooperate with delivery service providers to deliver transacted goods through the PMSE platform, by prioritizing the principles of healthy and fair business competition," said Rifan.

Secretary General of the DPP Association of Indonesian Express Delivery Services Companies (Asperindo), Sukatno's determination, said,

"We are still adhering to the KPPU's decision. If the KPPU states that there is a mistake, we follow the decision," said Sukatno.

Meanwhile, Chairman of the Indonesian Logistics Association (ALI) Mahendra Rianto has views on the global impact on local industries. Rianto stated that foreign policies such as banning Chinese products in Europe, forced these companies to look for markets with looser regulations.

He considered that the Omnibus Law policy, which allows 100 percent foreign investment in the logistics sector, opens up gaps for foreign companies to dominate the market.

"Foreign companies entering with large capital can take advantage of strategies such as burning money to monopolize, while local players must face very tough competition," Rianto said.

Without strict control by both the government and KPPU, he said, promises such as absorption of local workers cannot be ascertained to be carried out properly.

According to Rianto, the government must not only be firm but also have a clear protection program for domestic products.

"Strict action must be balanced with effective protection against local industries so as not to slump in the midst of unfair competition," he stressed.

Just so you know, the decision of the Business Competition Supervisory Commission (KPPU) regarding allegations of discrimination in the selection of shipping service companies by Shopee Indonesia, especially through Shopee Express, has not yet been followed by significant changes in the behavior of the marketplace.

Previously, the KPPU investigated Shopee Indonesia after the alleged e-commerce platform had implemented an algorithm system that unfairly prioritized certain courier services, such as Shopee Express and J&T compared to other courier options.

Investigations show the implemented system makes consumers less choice in shipping goods, leading to unhealthy competition practices.

After several trials, Shopee Indonesia and Shopee Express admitted the violations stated in the Report of Alleged Violations (LDP) and submitted a request for a change in behavior.

However, the implementation of this change remains unclear, raising concerns about its impact on healthy business competition.