Imitating China, Minister Teten Proposes HPP Arrangements In Revision Of Permendag 31/2023

Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki. (Photo: Theresia Agatha/VOI)

JAKARTA - Minister of Cooperatives and SMEs (Menkop UKM) Teten Masduki proposed a revision of the Regulation of the Minister of Trade (Permendag) Number 31 of 2023 to regulate the ban on product sales under the cost of production (HPP) in e-commerce.

"I have conveyed that at the coordination meeting (Rakor) the Coordinating Minister for the Economy needs to revise the Permendag Law regarding regulations not to sell (products) under the Basic Production Price (HPP)," said Teten after being met at the 2023 Nusantara Story event at the Jakarta Convention Center (JCC), Tuesday, November 28.

Teten said this revision aims to keep businesses on the e-commerce platform sustainable and avoid market monopolies.

He considered that China had regulated the ban on sales under the HPP to protect its industry.

"We have to imitate China, in China there is already an arrangement that digital platforms in e-commerce should not monopolize the market," said Teten.

Even so, Teten said the proposed revision could not be realized in the near future. This is because we have to wait for an evaluation from Permendag 31/2023 which will run for the next three months.

It will later be known whether the regulation is effective or not against the e-commerce platform in Indonesia.

"It can only be evaluated after three months. But it must be (revised). If we look at China protecting their digital market, don't let it be dominated by one platform. They apply the rules," he said.

Later the HPP will be determined by the association. Every association, be it textiles, garmen, electronics and others, is required to have a HPP.