Responses E Commerce Association of Indonesia (IDEA)

on the plan of arrangement related to foreign investment Industrial E Commerce

Referring to the Indonesian government's plans for a revised Negative Investment List (DNI) at the end of 2013, we are from Indonesia E-Commerce Association (IDEA) states in response to the topic of setting restrictions on foreign investment as follows:

1. Basically the idea of ​​wanting to support the Government's policy of economic growth based on the growth of domestic industrial capabilities.
2. Please note that the e-commerce industry in Indonesia consists of: classifieds (classified) Markets Online (Online marketplace) Retail Online (online retail)
3. Special on Online Retail industry, we believe that together we need to support the motion so that domestic production can compete and enter the global market, especially through online retail.
4. It should be understood that the e-commerce industry in Indonesia, including online retail is still at the stage provide insight and education to the community. The e-commerce industry is still feeling the need of foreign investors for the purposes of funding, as well as the need to get help 'expert / specialist from foreign parties for the technical aspects and the experiences of countries where e-commerce industry is already quite advanced.

Through discussions between members, then in relation to the opportunity to provide input on the plan formulation of policies on Investment Negative List, Idea intends to provide input as follows:

1. Applies Grandfather Clause for the company that has obtained an investment license from the Government and the new rules are not retroactive. Thus the company has obtained an investment permit and has been in operation will not be interrupted operations or protection from the government. It also will not adversely affect the investment climate in Indonesia.
2. For Retail Business Online, enforceable open to foreigners with requirements: Online Retail should be imposed necessity to sell domestic products in certain minimum amounts; Should be responsible for risk; The number of workers in the country as a majority and over the ability of foreign workers to labor in the country is a must; Providing opportunities for exporting our products in the country.

Enter the above is intended as a form of support to the mission of the Government's idea to invite foreign investment, protecting domestic producers, and help domestic products to the global market.

Jakarta, 11 November 2013

 

Daniel Tumiwa
Chairman of the Indonesian Association of E Commerce

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