Trade Minister: E-commerce Regulations Do Not Overlap with Ministry of SMEs

Jakarta (ANTARA) - Trade Minister Budi Santoso has assured that the revision of Trade Ministerial Regulation (Permendag) No. 31 of 2023 regarding the e-commerce and marketplace trading ecosystem does not overlap with the regulations currently being drafted by the Ministry of Cooperatives and SMEs (UMKM). “We have been in continuous communication with the Ministry of UMKM from the start. So, even if there are (UMKM Ministry regulations), they will complement each other,” Budi said in Jakarta on Sunday. Budi explained that the objectives of revising Permendag No. 31 of 2023 include strengthening protection for local products, including production from micro, small, and medium enterprises (UMKM), consumer protection, and prioritising the promotion of local products on e-commerce and/or marketplace platforms. Meanwhile, the Ministry of UMKM is currently preparing specific regulations to govern e-commerce administrative fees. SMEs Minister Maman Abdurrahman previously stated that the regulation is in the cross-ministerial synchronisation stage, including with the Ministry of Trade, the Ministry of Law and Human Rights, and the State Secretariat. The discussion of these regulations follows recent complaints from UMKM players about the high administrative and logistics fees charged by the digital trading platforms they use. “In general, regarding the ecosystem you asked about earlier. So, we complement each other towards society,” he said. Furthermore, Budi assured that the revision of Permendag No. 31 of 2023 will be launched soon. “As soon as possible, yes, as soon as possible. Hopefully, it will be completed this month. I don’t know if it will be together or not (with the UMKM Ministry’s regulations). But our processes are always simultaneous because we are always communicating,” he said. Previously, SMEs Minister Maman Abdurrahman revealed that his ministry has received numerous complaints from micro and small business operators regarding the high administrative fees charged by e-commerce platforms. “The complaints are quite numerous. Almost every day they come to me, either through direct messages (DM) on Instagram, Facebook, or WhatsApp. The government must respond to this,” Maman told reporters in Jakarta on Monday (27/4). The administrative fees in question are the deductions or transaction commissions charged by e-commerce platforms to sellers for each sale. The increase in these rates is deemed burdensome for UMKM as it reduces their profit margins and competitiveness in the digital market.