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Living in Harmonization of Rules, Imported Goods Under Rp1.5 Million Prohibited from Being Sold Online

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Living in Harmonization of Rules, Imported Goods Under Rp1.5 Million Prohibited from Being Sold Online Comedian Kadir (KLY)

Dream - The government's move to ban the sale of imported goods under Rp1.5 million through social commerce is likely to materialize. Minister of Trade Zulkifli Hasan ensures that the draft revision of the regulation is now only in the harmonization stage.

The regulation to be revised is the Minister of Trade Regulation 50/2020 concerning Provisions Related to Business Licensing, Advertising, Development and Supervision of Commercial Agents.

According to Zulkifli, the changes to this electronic trading system regulation are in the harmonization stage with the Ministry of Industry and the Ministry of Cooperatives and SMEs.

Zulkifli said that the Ministry of Trade does not allow social commerce players from abroad to sell imported products under US$100 or around Rp1.5 million.

Platform Prohibited from Being a Producer

The existence of different licensing agreements also prohibits digital platforms from becoming producers.

"For example, A on a marketplace, he cannot become a producer because his permit is different, his institution is different," said the minister, who is commonly known as Zulhas, as quoted from Liputan6.com

In addition to prohibiting the sale of imported goods under Rp1.5 million, the government will also require social commerce to have special permits and pay taxes.

With these provisions, the treatment received will be the same as SMEs. "If imported goods, they must pay taxes," he said.

Can TikTok Shop Sellers Sell Imported Products Under Rp1.5 Million?

Dream - The Ministry of Cooperatives and SMEs revealed that social media and short video platforms will be prohibited from selling imported products below US$100 or around Rp1.5 million. This prohibition is made to protect the survival of small entrepreneurs in the country.

This prohibition will be regulated in the revision of the Minister of Trade Regulation (Permendag) Number 50/2020 concerning Business Licensing, Advertising, Development and Supervision of Business Actors in Electronic Trading (PPMSE).

Special Staff of the Minister of Cooperatives and SMEs for Creative Economic Empowerment, Fiki Satari, did not deny that many sellers who sell through the TikTok platform are Indonesian SMEs. However, the products being sold may not necessarily be local products.

"It could be imported products that have entered Indonesia, which could erode local SMEs," said Fiki, as quoted from Merdeka.com, Thursday, July 27, 2023.

Fiki's statement is supported by evidence of product sales through TikTok being cheaper than market prices. Starting from Muslim clothing, cosmetics, to shoes that are priced around Rp100,000, even Rp5,000.

"Regarding this revision of Permendag, it has not been regulated yet," he explained.

This new policy arises following concerns that Project S TikTokShop in Indonesia will harm SMEs. The government has also urged TikTok Indonesia to ensure fair treatment for local SMEs on the platform.

"Based on publications and reports from SMEs to Smesco and the Ministry of Cooperatives and SMEs directly, there are many and we have conveyed them to TikTok Indonesia. We are open and ready to find solutions together. TikTok is asked to prioritize the spirit of red and white," said Fiki.

The Ministry of Cooperatives and SMEs also invites all stakeholders, including TikTok, to ensure the advancement of local SMEs. Among them is encouraging SMEs to onboard on digital platforms, with the government targeting 30 million SMEs by 2024.

"By March 2023, there have been 22 million SMEs onboarded. When SMEs enter e-commerce, there must be an equal playing field. As happened last year, where imported goods were cheap," said Fiki.

Head of Communications for TikTok Indonesia, Anggini Setiawan, denied the allegations against Project S as suspected by the government. She said that since the launch of TikTok Shop in Indonesia, TikTok has decided not to engage in cross-border business in Indonesia.

This is the company's commitment to support local SMEs in Indonesia, in line with the Indonesian Government's mission to empower local SMEs.

TikTok emphasizes that 100 percent of sellers on TikTok Shop have registered local business entities or are local micro-entrepreneurs verified by ID cards or passports.

"It is not true that we will launch cross-border initiatives in Indonesia. We have no intention of creating our own e-commerce products or becoming wholesalers that will compete with Indonesian sellers," Anggi explained.

 

Disclaimer: This translation from Bahasa Indonesia to English has been generated by Artificial Intelligence.
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