Indonesia needs new law for protecting e-commerce trade
Indonesia needs new law for protecting e-commerce trade
JAKARTA (JP): The government has been urged to amend or create
existing laws and regulations to safeguard and support trade
transactions through the Internet.
Coordinating Minister for Development, Supervision and State
Administrative Reforms Hartarto Sastrosoenarto said on Monday e-
commerce transactions must be well-administered and regulated to
ensure their legality and accountability.
"Important aspects related to e-commerce that need special
attention include tax, law, customs and excise, Internet banking
and finance," he said in a speech to commemorate International
Telecommunications Day.
Special regulations on tax and customs and excise for
electronic transactions should, for example, be created to
prevent tax avoidance, he said.
"It is important to have proper and legal codification of
transaction systems through electronic devises.
"An international agreement on aspects of e-commerce within
countries where electronic commerce is conducted should be
established," he said.
To develop technology and infrastructure to stimulate the
development of e-commerce in Indonesia, foreign investment
participation was needed, said Hartarto.
He said leeway would be provided to foreign companies,
especially those experienced in developing electronic commerce
activities.
"I promise you that the government will provide permits
without hassles to prospective investors to form joint-venture
companies with local companies to develop electronic commerce
here."
He said he recently met some 20 prospective investors and that
interest was high.
"But fulfilling this interest will most likely be carried out
when the Indonesian economy has recovered," said Hartarto, who is
also the chief coordinator of Telematika, a body established by
the government to supervise the development of the
telecommunications and information industry.
He said foreign companies were needed not only to finance the
establishment of the infrastructure but also to transfer the
technology.
Indonesia should immediately take steps to establish
electronic commerce capability if it wanted to survive tight
competition in the global era, he said.
Private local companies were encouraged to take advantage of
the extensive foreign investment opportunities to negotiate with
their counterparts, he said.
"Preparation for electronic commerce here is best carried out
by the private sector."
He said the government through its state telecommunications
company PT Telkom, along with its subsidiary PT Indosat and
partners in the telecommunications joint-operation scheme, would
only provide basic telecommunications infrastructure required for
electronic commerce activities. (cst)