Newly minted Indonesia E-Commerce Regulation - Chapter 1

After 3 years since the circulation of the draft E-commerce Regulation, the Government of Indonesia has finally enacted Government Regulation No. 80 year 2019 on Commerce through Electronic System or E-commerce (GR 80) in late November. The regulation is implemented as a derivative of Law No. 7 year 2014 on Trade Law and a further regulation of Presidential Regulation No. 74 year 2017 on the National E-commerce Road Map. 

The key area of GR 80 consists of following matters:

1. Relevant parties in E-commerce;
2. Requirements in conducting E-commerce;
3. Implementation of E-commerce;
4. Obligations of E-commerce business actor;
5. Evidence of E-commerce transaction;
6. Electronic advertisement;
7. Electronic offering, acceptance and confirmation;
8. Electronic contract;
9. Personal data protection;
10. Payments in E-commerce;
11. Delivery of goods and services in E-commerce;
12. Exchange goods/services and purchase cancellation in E-commerce;
13. Dispute resolution in E-commerce; and
14. Guidance and surveillance.

In this chapter, some significant provisions that will impact to local and foreign E-commerce business actor will be discussed.

Relevant parties

GR 80 targeting following parties:

1. Merchant (individual or business entity);
2. E-commerce service provider (individual, business entity or state-owned entity that are required to have business permit);
3. Intermediary service provider (individual or business entity that facilitate electronic communications other than telecommunication service provider such as Google, Yahoo and/or hosting service provider and payment gateway provider)

The above parties are also referred to as "E-commerce business actor" or Pelaku Usaha that could be local or foreign business actor.

For foreign E-commerce business actor who is actively offering and/or conducting E-commerce business to Indonesian consumers and coming within certain criteria such as transaction amount; transaction value; delivery amount; and/or number of traffic or visitor, will be deemed to have physical presence and conducting permanent business in Indonesia. Accordingly, such E-commerce business actor must appoint a representative in Indonesia. 

Consumer protection

In terms of consumer protection, GR 80 provides a legal basis that allows any consumer who suffers losses from E-commerce may lodge a complaint against E-commerce business actor to Ministry of Trade. Such business actor complained against is then required to resolve the complaint report, otherwise, they will be listed in the Priority List of Surveillance (a list of business actor with disputes or potentially violating trade policy, but is not yet blacklisted) which can be accessed by public. However, GR 80 does not provide further explanation as to how the business actor shall complete the complaint report or to sort it out.

Domain name and Whistle blower system

Both local and foreign E-commerce service provider are obliged to use Indonesian high-level domain name (.id) for their respective website.

In align with consumer protection, GR 80 also stipulates that local and foreign E-commerce also Intermediary service provider is liable for legal consequence due to illegal content on their website. Unless there is a prompt action by taking down illegal contents upon request or any findings of such contents.

To avoid such issues or responding to any information on illegal content, it is compulsory for local and foreign E-commerce service provider to provide:

• terms and condition or license agreement to its users in using E-commerce service providers' services in lawful conduct; and
• complaint form to report illegal contents or any law infringement for public 

Some E-commerce service provider has been providing complaint form, either in electronic or manual form for public access. Through this whistle blowing system, public can report illegal content or unlawful conduct within E-commerce area to purpote law enforcement.

The emerging E-commerce law in Indonesia shows the positive vibes of Indonesian E-commerce market and Government role to take the issue seriously. As the above discussions are not the entire key areas impact local and foreign E-commerce business actor, I will discuss the remaining key areas in next chapter.

Written by: Threeas Novayanti