JAKARTA - The Ministry of Micro, Small and Medium Enterprises (UMKM) admits that there are still many sellers on e-commerce platforms who have not listed the origin of the product, even though this obligation has been regulated in the Regulation of the Minister of Trade Number 31 of 2023.
Deputy for Small Business of the Ministry of MSME, Temmy Satya Permana, said that Indonesia's digital economy is currently dominated by the e-commerce sector, which supports around 70 percent of national digital economic activities.
"Around 25 million MSME entrepreneurs have switched to the digital ecosystem through social media and lokapasar," he said at the Future City event in Kudus, Central Java, Friday, quoted from a press statement from the MSME Ministry in Jakarta, quoted by Antara, Saturday, December 20.
However, he said the growth of the digital ecosystem still faces serious challenges, especially related to consumer awareness in buying domestic products.
Government studies show that people's preferences in online shopping are still dominated by considerations of quality and price without paying attention to the origin of the product.
Regulation of the Minister of Trade Number 31 of 2023 regulates the licensing of business, advertising, training and supervision of business actors in trade through electronic systems (PMSE/e-commerce).
One of the provisions is the obligation of product information transparency, including listing the country of origin of the shipment of goods and the origin of foreign traders.
Even though the regulation is in effect, Temmy assessed that its implementation is not optimal. For this reason, the Ministry of MSME encourages sellers to consistently list the origin of the product so that consumers have clear information and awareness of choosing local products increases.
He added that strengthening the domestic market was the key to maintaining the sustainability of UMKM businesses. With the right strategy, local products are believed to be able to dominate the domestic market while competing in the global market.
Temmy explained that the Ministry of MSME also continues to accelerate the digital transformation of MSME entrepreneurs through integrated data collection, facilitating business legality, and encouraging more MSME to enter the digital realm.
Currently, a total of 122.102 million MSMEs entrepreneurs have been registered on various e-commerce platforms.
Meanwhile, Ministry of Trade data in 2024 shows that the number of e-commerce users in Indonesia continues to increase from 58.63 million in 2023 and is projected to reach 99.1 million users by 2029.
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