Minister of Trade (Mendag) Budi Santoso said the revision of the Minister of Trade Regulation (Permendag) regarding the implementation of trade activities through electronic systems (PMSE) aims to strengthen micro, small and medium enterprises (MSMEs) and consumer protection.
Budi said the new PMSE rules have five main aspects that focus on the visibility of local products, facilitating the legality of business actors, transparency of digital platform partnerships, strengthening consumer protection, and strengthening digital technology governance.
"The improvement of PMSE regulations through this new Permendag aims to encourage the strengthening of a fair, healthy, and beneficial digital trade ecosystem. Of course this is done by taking into account the dynamic development of technology," said Budi through a written statement received in Jakarta, Friday.
He further explained that several main rules in the Permendag include the priority of the visibility of domestic micro and small business (UMK) products on the platform, the obligation to have business licenses, transparency in the imposition of platform fees and promotion policies, and the provision of promotional incentives for UMK.
Then, the provision of complaint and dispute mechanisms by platforms, the use of artificial intelligence (AI) in product promotion and marketing activities, and protection from unhealthy trade practices.
In addition, he said two business models were added to the PMSE (PPMSE) Organizer. First, Ride-Hailing, where the business model is defined as an electronic system in the field of land transportation that can be accompanied by features for trading goods and services as additional services in the same ecosystem.
The ride-hailing regulation in the Permendag targets the activity of trading goods facilitated by the platform through the trading features of the ride-hailing application.
"Thus, what is regulated is the transaction of buying and selling goods, not the transportation service," said Budi.
The second business model is the Online Travel Agent (OTA). The business model is an electronic system in the form of selling or booking travel services to consumers, either directly or through facilitating transactions between consumers and business actors, who sell or organize transportation tickets, accommodation, attractions, and travel packages.
Regarding the obligation to have a business license for all traders who sell through platforms, Budi emphasized the need for regulation to realize a more orderly and healthy digital trading ecosystem. The regulation also encourages the provision of legal certainty for business actors and consumer protection.
To provide adequate adaptation space, the government has set a grace period for business actors to fulfill their licensing obligations. He hopes that the transition process to a more formal digital trading ecosystem can be carried out gradually and not burdensome.
"This regulation is a first step. We will continue to be present through synergy in coaching and mentoring for business actors through socialization, training, promotion, and online and offline activities. A healthy digital ecosystem can be realized if we build it together," he said.
The latest draft of the Permendag has been signed by Budi. This regulation will replace Permendag Number 31 of 2023 concerning the Licensing of Entrepreneurs, Advertising, Guidance, and Supervision of Business Actors in Trade through Electronic Systems.
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