Kadin Says Regulations Must Provide Growth Space for Digital Economy

Jakarta – The Indonesian Chamber of Commerce and Industry (Kadin) has stated that regulations relating to the digital ecosystem must prioritise public safety whilst simultaneously providing growth opportunities for digital economy operators.

This was conveyed by Firlie Ganinduto, head of Kadin’s Digital Ecosystem Body, in response to several digital ecosystem regulations being prepared by the government, including implementing regulations for the Government Regulation on Electronic System Management in Child Protection (PP Tunas) and draft regulations concerning ride-hailing services.

“We support regulations that protect national interests, SMEs, and the public. However, we also believe that regulations must provide growth space, not close it off. Through careful processes, open dialogue, and realistic approaches, Indonesia can have fair digital regulations,” Firlie stated in a virtual press conference on Friday.

Firlie noted that Kadin observed the risk assessment component provisions imposed on Electronic System Operators (PSE) in the draft PP Tunas regulations were still unclear. He said the definitions and mechanisms require deeper explanation and must account for the different business models of various players within Indonesia’s digital economy ecosystem.

He suggested that industry stakeholders should be involved in digital ecosystem regulation development from the earliest stages, rather than being consulted midway through the drafting process.

In this way, measures that can be adapted to serve both public protection and national digital economic growth can be better harmonised.

“We at Kadin hope the government will continue to open meaningful dialogue with the digital industry, involve business actors from the beginning rather than the end of the process, and ensure regulations remain adaptive to technological and business model changes,” Firlie said.