Researcher: Emergency Micro PPKM Potentially Increases Digital Transactions

Presidential Special Staff Angkie Yudistia (left) talks with participants in digital business training for people with disabilities in Denpasar, Bali, Monday (21/6/2021) (Fikri Yusuf/Antara)

JAKARTA - Center for Indonesian Policy Studies (CIPS) researcher Thomas Dewaranu stated that the implementation of the micro emergency Community Activity Restrictions (PPKM) has the potential to increase the trend of digital economic transactions.

"Restrictions on community mobility and restrictions on operating hours for economic centers make digital platforms an option that people can use to meet their needs," said Thomas in a press statement received in Jakarta, quoted by Antara, Thursday, July 1.

According to Thomas, the expansion of access to Technology, Information and Communication (ICT) and consumer protection are two things that should be implemented in tandem to support the increase in digital economic transactions.

Data from Google and the Ministry of Commerce show that during the COVID-19 pandemic since March 2020, new digital consumers in e-commerce in Indonesia increased by 37 percent throughout 2020. The valuation of Indonesia's digital economy has also grown by more than 40 percent per year since 2015 and on a part-time basis. By 2020 digital service providers in Indonesia have processed transactions worth 40 billion US dollars.

Meanwhile, the number of internet users also continues to increase. Based on BPS data, Indonesia experienced a significant increase in internet users from 10.92 percent of the population in 2010 to 43.52 percent of the population in 2019.

However, the same data also shows that digital inequality in Indonesia occurs mostly at the bottom of the pyramid (BOP), such as the poor, women, the elderly, and people who are geographically located east of Indonesia.

“In addition to expanding internet access, consumer protection and transaction data also need to be strengthened. The legislation on the Personal Data Protection Bill must ensure that consumers get consistent protection for transactions, both in person and online,” said Thomas.

He also explained the need for real efforts from the government to minimize, even eliminate the inequality of access to information and communication technology (digital divide) between regions in Indonesia.

"Inequality of access to information and communication technology can be an obstacle in increasing the penetration of the digital economy and creating economic opportunities for those who live in small cities and far from economic centers," he said.

He further advised the government to review the policy plan for limiting imported products in the digital market as an effort to respond to the increase in online transactions due to the emergency micro PPKM.

This policy, he assessed, could limit consumers' economic choices in the digital market and in fact increase the burden on consumers in the digital market.

"Instead of implementing restrictive policies on imported products, protection of local producers must be carried out with a co-regulatory approach and in collaboration with digital platforms,"

He also gave an example of giving authority to platforms such as marketplaces to support domestic producers by providing special stalls and giving the label 'proud to be made in Indonesia' for local MSME products. This effort is considered much better and minimal distortion compared to restrictions on the circulation of imported goods.