JAKARTA - The Ministry of Micro, Small and Medium Enterprises (MSMEs) is drafting a Ministerial Regulation (Permen) on the Protection and Improvement of the Competitiveness of MSMEs as a step to strengthen a healthy, fair and sustainable digital trade ecosystem in the midst of the dynamics of e-commerce platform service costs that often burden MSMEs entrepreneurs.
"The Ministry of MSME is interested in maintaining a fair ecosystem. This regulation has been harmonized with the Ministry of Law and is currently entering the legislative stage at the Ministry of State Secretariat," said the Minister of MSME, Maman Abdurahman, Tuesday, April 19.
According to Maman, the Decree on the Protection and Improvement of the Competitiveness of MSMEs will regulate at least five main issues that MSMEs entrepreneurs have been facing on e-commerce platforms. One important point is the simplification of the nomenclature of the cost components of the marketplace service so that it is more transparent, easy to understand, and not confusing for MSMEs entrepreneurs.
He explained, until now each platform uses different terms for service fees so that it seems complex and burdensome. In fact, basically the fees charged to UMKM sellers only include registration fees, service fees, and promotion fees.
"We also want to provide incentives to micro and small businesses that sell on marketplaces. The incentive is in the form of a 50 percent discount on e-commerce platform service fees," said Maman.
To obtain this incentive, micro and small business entrepreneurs are required to join the SAPA UMKM system which will later be integrated with the marketplace system.
Maman emphasized that the Minister's Decree will also regulate a ban on marketplaces from raising service fee rates suddenly without notifying UMKM sellers. According to him, sudden changes in fees can disrupt the cash flow and sustainability of UMKM entrepreneurs' businesses.
Through this regulation, the government will also ensure that there is a long-term contract between the marketplace and the seller so that the service fee rate remains valid for one year.
"If the marketplace wants to raise or revise the cost of services, they must notify three months in advance so that micro and small businesses have the opportunity to prepare. Don't raise it suddenly because it will be a burden for them," said Maman.
During the process of preparing the Regulation on the Protection and Improvement of the Competitiveness of MSMEs, Maman asked e-commerce platform managers not to increase the cost of service fees to MSMEs sellers in order to avoid misunderstandings in the field.
He also emphasized that the Ministry of MSME would not hesitate to sanction parties who violated the provisions in accordance with the mechanisms stipulated in the Decree.
"The Decree on the Protection and Improvement of the Competitiveness of MSMEs will be effective after the legislative process is completed and the system integration mechanism with the SAPA UMKM is completed," said Maman.
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