Indonesian industry demands restrictions on e-commerce goods imported from China

The Executive Director of CELIOS explained that there has been a significant increase in e-commerce products imported through distributors and across borders, thus posing a threat to local producers.According to CELIOS.Total e-commerce imports have grown significantly from 6.1 million in 2017 to 100 million in 2022, with the increase in e-commerce imported parcels indicating an expansion of imports from China in the online marketplace.In addition to this, there are indications of large-scale piracy of local products, especially Muslim clothing and accessories. The increase in e-commerce imports from China needs to be controlled through a variety of policy options, one of which is the implementation of NTB policies, SNI, Halal certification and other certifications as effective import barriers.

The Government needs to strengthen regulation of cross-border dumping, as imported goods are cheaper than in the country of origin.This requires concrete evidence, as proving dumping requires additional work. For MSMEs, producers accessing e-commerce platforms need to continuously improve the competitiveness of their local products by integrating with all MSME digitization programs. Then there is the creation of aggregators and the 0% KUR program for business participants. The government has taken several measures to encourage local businesses to participate in e-commerce, one of which is the prohibition of promotions and discounts on imported products with local product substitutes.The KPPU needs to provide stricter oversight and tougher sanctions for unfair business competition practices, and then monitor the use of personal data, e-commerce, and social commerce algorithms by third parties, to protect the copyrights of local producers, and to prevent the distribution of fake/counterfeit products on the platform. distribution of counterfeit/imitation goods on the platform.