One Voice, the Government Regulates Social Commerce

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After reportedly having different views, the government finally came out with a regulation governing social commerce.

The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found inMinister of Cooperatives and Small and Medium Enterprises of the Republic of Indonesia, Teten Masduki, visited Kompas daily to discuss TikTok Live Shopping regulations on Wednesday .. This short-term response is outlined in Minister of Trade Regulation Number 31 of 2023 which regulates social commerce.

"Previously, foreign retail products could be sold directly to consumers, but now permits and standards are required to protect consumers. Fourthly, there is no more predatory pricing to protect UMKM products. We regulate imported goods sold online that must not be less than 100 US dollars per unit," said Teten.

The Minister of Trade's Regulation on Social Commerce is a short-term response. As for the medium to long-term response, Teten added, it is in the form of a digital transformation strategy. This will still be discussed in the next opportunity."But the most important thing is that there is a clear authoritative policy direction. But currently, it's like on autopilot. As a result, private initiatives in the downstream sector are developing. Meanwhile, the production sector is still weak, so our products cannot compete," said Teten.

The influx of illegally imported goods dominates the e-commerce platform, with an estimated 98 percent of marketed products falling under this category. In the long run, the government's efforts to enhance the digital industry involve the establishment of a digital transformation task force. This transformation will regulate several digitalization strategies, such as fostering industrial digitalization, government service digitalization, data digitalization, and digital talent.Workers boil cowhide after cleaning the fur at the cowhide crackers production center in the Katulampa area of ​​Bogor, West Java, on Sunday .


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