Chinese Products Considered Stepping On Indonesian MSMEs, Trade Minister Lutfi Will Call Lazada Bosses To Shopee
Minister of Trade, M. Lutfi. (Photo: Doc. Of the Ministry of Trade)

JAKARTA - Minister of Trade Muhammad Lutfi will regulate trade discounts in e-commerce which have the potential to kill micro, small and medium enterprises (MSMEs). This is a follow-up to the direction of President Joko Widodo (Jokowi) who echoes the love of local products.

Currently, said Lutfi, the regulation is under discussion, the target is to come out in the near future. Trade Minister Lutfi admitted that he would summon high-ranking e-commerce business actors from within the country and abroad such as Lazada to Shopee.

"So I am currently finalizing between ministries and I will recall the players again at the end of this month. Before fasting, God willing, it will be finished," he said in a virtual press conference, Friday, March 19.

Lutfi said, his party had also held talks with the e-commerce players regarding the draft regulations that were being drafted. In his discussion, Lutfi emphasized that the Indonesian government wants a market that has equality.

"I have spoken with many big stakeholders such as the idEA association, Bima Laga, have spoken with Tokopedia, Blibli, Bukalapak, and even Traveloka. I have also spoken to international players including Shopee and Lazada. We are talking openly, the government wants to have a level market growth. equal playing field, which means having equality, "he explained.

According to Lutfi, when the marketplace in Indonesia has equality, fair competition and benefits will be created. Therefore, the points that become the focus are to get an understanding of e-commerce.

However, unfortunately, when asked about concrete steps regarding the regulation, including the potential for limiting discounts, the Trade Minister, Lutfi, did not explain in detail.

"Philosophically, we will protect it, namely fair and beneficial trade. This means that if it is not fair I will regulate it, if it is not useful, I will regulate it, if foreigners eat the local one I will regulate. If local people injure MSME traders, I will manage. we will arrange it. Hopefully we have equality and are much better, "he said.

Previously, President Joko Widodo (Jokowi) detected improper practices in digital or online trading. Therefore, he ordered the Minister of Trade Muhammad Lutfi to check this matter and solve it.

Jokowi admits that he is worried that this improper practice will kill the micro, small and medium enterprises (UMKM) sector in the country.

"If there is a digital trade practice that behaves unfairly towards MSMEs, it must be regulated immediately and must be resolved immediately. Just last week I told the Minister of Trade, there is something wrong with this in our digital trade. Killing MSMEs, be warned," he said when inaugurating it. opening of the national working meeting of the Ministry of Trade at the State Palace, Jakarta, Thursday, February 4.

But unfortunately, Jokowi did not mention in detail what the intended incorrect practices were. Even so, he emphasized, this is an important task of the Ministry of Trade to support MSMEs.

In addition, Jokowi also asked the MSME sector to get more attention, so that the Ministry of Trade must have policies and strategies to develop local products.

Furthermore, Jokowi said that the benefits of encouraging MSMEs to recover had been seen. Therefore, digital power must be utilized to link the supply of MSMEs throughout Indonesia with the national market and the global market.

For example, said Jokowi, chips made in Indonesia can now be exported to Korea and even Japan.

"Digital trade must empower our small MSMEs, if appointed, given the opportunity I see a lot," he said.


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