Government urged to regulate e-commerce growth<\/p>\n
JAKARTA (JP): Experts and Internet companies called on the
\ngovernment on Tuesday to immediately create a clear and
\nintegrated law to ensure a smooth and rapid growth in electronic
\ncommerce in the business and government sectors.<\/p>\n
Jonathan L. Parapak, commissioner of Lippo E-net and former
\nsecretary-general of the Ministry of Tourism, Post and
\nTelecommunications, said the government should no longer delay
\nformulating the practical guidelines and regulations on e-
\ncommerce.<\/p>\n
"We urgently need to have a regulation that administers the
\nrules of the game, especially regarding the security aspect. E-
\ncommerce will continue to grow here and it needs a clear
\ndirection and legal assurance, too," he told a seminar on e-
\ncommerce.<\/p>\n
The general manager of e-commerce service provider PT
\nIndosatcom, J. Kriswanto, said security and legal assurance were
\nimportant for providers and customers of e-commerce.<\/p>\n
"It will be very hard to get more people buying things on the
\nInternet if there is no assurance that virtual purchasing is
\ntechnically safe and legally guaranteed," he said.<\/p>\n
He said the growth of e-commerce in Indonesia was still slow
\nmainly due to the lack of security assurance as well as
\ninfrastructure, such as computer and telephone lines.<\/p>\n
Data from state-owned telecommunications company PT Telkom
\nsaid there was only 5.94 million fixed lines available for
\nIndonesia's population of 210 million at the end of September
\nlast year.<\/p>\n
An estimated two million people in Indonesia have access to
\ncomputers, but only about 250,000 have computers at home.<\/p>\n
Kriswanto cited a recent international survey on e-commerce in
\nAsia classifying Indonesia as a country with quite a slow
\nadaptation to e-commerce, with e-commerce transactions growing by
\n16 percent to 18 percent in recent years.<\/p>\n
According to the survey, Singapore was the most adaptive
\ncountry with e-commerce transactions growing by over 28 percent.<\/p>\n
However, information technology research specialist
\nInternational Data Corporation (IDC) of the United States
\nrecently predicted e-commerce use in Indonesia would grow faster
\nstarting from 2000, in line with the recovery of people's
\npurchasing power and the entrance of more e-commerce service
\nproviders.<\/p>\n
At least four giant local companies -- namely, the insurance
\nfirm Asuransi Lippo Life (Lippo E-net) and electronics and office
\nequipment suppliers Astra Graphia, Multipolar and Metrodata
\nElectronics -- have recently announced their entrance in e-
\ncommerce business.<\/p>\n
Lippo Life, for example, announced last week the company's
\ndecision to change its name to PT Lippo E-Net and shift its focus
\nto internet business.<\/p>\n
The company said it would invest up to Rp 2 trillion ($278
\nmillion) to finance its expansion to Internet-based businesses,
\nincluding an Internet-based insurance brokerage, banking,
\nsecurities brokerage, shopping and Internet infrastructure
\nproviding.<\/p>\n
With the arrival of more new e-commerce providers, IDC
\nestimates the number of individuals and companies participating
\nin e-commerce in the country will reach about 70,000, with total
\ntransactions amounting to $100 million this year.<\/p>\n
IDC said Indonesia was previously very slow in absorbing e-
\ncommerce, which was indicated by the low volume of transactions
\nof less than $20 million during the period of 1996 to 1999. (cst)<\/p>",
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