Protect Local MSMEs, PSI Supports The Revision Of Permendag No. 50 Of 2020

Illustration. (Photo: Doc. Antara)

JAKARTA - The Indonesian Solidarity Party (PSI) firmly supports the revision of the Regulation of the Minister of Trade (Permendag) No. 50/2020 concerning Business Licensing, Advertising, Development and Supervision of Business Actors in Electronic Trade (PSME). This can protect national micro, small and medium enterprises (MSMEs) from the onslaught of foreign products.

The chairman of the PSI DPP, Kokok Dirgantoro, stated that the revision of Permendag No.50/2020 needed to get support from all parties because its function was as a legal umbrella for protection for national MSMEs.

"Therefore, we ask the Ministry of Trade to immediately ratify the revision of the regulation," said Kokok, in his statement, Monday, February 20.

The improvement of this Permendag is the President's mandate to the Minister of Trade and the Minister of Cooperatives and SMEs to increase protection for MSMEs, consumers, and domestic PMSE business actors. This Permendag is a derivative of Government Regulation (PP) Number 80 of 2019 concerning Trade through Electronic Systems (PMSE).

The four goals in this revision are the first to minimize threats to MSMEs and domestic industries from foreign products and unhealthy trade. Second, prioritizing domestic products and trade. Third, developing access to MSME businesses within the digital economy. Fourth, consumer protection from trade and foreign products.

"Currently, the rise of imported products sold on online buying and selling platforms threatens the existence of local MSME actors. Not to mention the practice of cross-border and predatory pricing carried out by e-commerce platforms from abroad. This makes it difficult for local MSME actors to compete, so regulations that are able to protect and can create fair level playing fields are needed," said Kokokok.

Previously, Plt. The Director General of Domestic Trade of the Ministry of Trade Kasan stated that the revision of Permendag 50/2020 is currently still in the process of being finalized and has been submitted to the next stage after a public hearing two weeks ago.

The improvement of the policy is expected to create justice for treatment between domestic and foreign business actors as well as formal and informal business actors. In the revision of Permendag 50/2020, it is planned that the minimum price limit for cross-border products will also be applied.

"We all know that the potential of MSMEs in Indonesia is very large. A total of 19.5 million MSME players or 30.4 percent of the total MSMEs have used the e-commerce platform to run their businesses. Therefore, PSI really appreciates and supports the Government's efforts to optimize the potential of the digital economy, which in 2030 is targeted to reach IDR 4,531 trillion," concluded Kokok.