Indonesian Political, Business & Finance News

Government prepares regulations to protect MSMEs in the digital market

| Source: ANTARA_ID Translated from Indonesian | Regulation
Government prepares regulations to protect MSMEs in the digital market
Image: ANTARA_ID

Jakarta (ANTARA) - The Minister of Cooperatives and SMEs, Maman Abdurrahman, stated that the government is preparing regulations to strengthen protections while boosting the competitiveness of MSMEs active in the digital market or e-commerce. “The government is committed to ensuring protection and increased competitiveness for MSME entrepreneurs selling on e-commerce platforms. Until now, there has been no specific regulation governing this matter,” Maman said in Jakarta on Monday. Maman explained that the preparation of these regulations is a response to various aspirations and complaints from MSME actors, particularly regarding the increasing burden of fees imposed by digital platforms. He revealed that his office has received numerous complaints from micro and small business operators about the high administrative costs charged by e-commerce platforms. The administrative costs in question are the deductions or transaction commissions charged by platforms to sellers for each sale. These fee increases are seen as burdensome for MSMEs as they reduce profit margins and competitiveness in the digital market. Maman stated that the regulations are now in the synchronisation stage, involving several related ministries and institutions, and are targeted for imminent release. “This rule will serve as a mandatory legal umbrella, not merely an incentive. The objective is clear: to provide strong and sustainable protection for micro and small businesses selling in the digital market,” he said. He added that the rules being prepared differ from temporary incentive policies. The government, he said, seeks to deliver long-term legal certainty capable of creating a fairer, healthier, and more competitive digital ecosystem. With these regulations, he hopes MSMEs can develop sustainably in the digital market without being burdened by detrimental rules, while strengthening their position in facing global competition. “The state must be present to address these challenges. Until now, there has been no comprehensive regulation protecting and maintaining the competitiveness of MSME entrepreneurs in the digital ecosystem,” he said.

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