AmCham Update
AmCham Update Vol. 4 #104
New Gov't E-commerce Regulation, Jokowi Calls For Greater Jakarta Transportation Integration, New Round of Rice Imports, Nipah Virus, Air Quality Devices
Sep 29, 2023


New E-Commerce Regulation Issued

The Ministry of Trade (MoT) has issued MoT Regulation 31/2023, the revised version of e-commerce Trade Regulation 50/2020, which prohibits foreign merchants from selling any goods valued below $100 to Indonesian customers via e-commerce, and bans social media from selling goods on their platforms, on Sep 25.

Social media platforms with e-commerce features have been granted a one week grace period to remove these features or risk having their electronic service provider (ESP) permit terminated, Minister of Trade Zulkifli Hasan said. Social media platforms conducting commercial activities, defined as “social commerce” by the regulation, require a separate legal permit which is still under discussion, he added. Under the regulation, e-commerce and social commerce platforms are prohibited from producing their own goods.

Zulkifli said foreign goods below $100 coming to Indonesia through proper importation channels, and sold through e-commerce, will still be allowed. The minister confirmed a positive list of goods exempt from the $100 value cap will be issued in coordination with other related ministries and agencies. All goods sold through e-commerce must comply with National Standards (SNI), halal certification, food and drugs supervision, and other relevant requirements.

The new regulation is focused on facilitating a fair and level playing field for domestic micro, small, and medium-sized enterprises (MSME) and preventing misuse of personal data by social media platforms for commercial purposes, Zulkifli said.

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Jokowi Calls For Greater Jakarta Transportation Integration

President Joko Widodo has called for collaboration between central, regional government, and state-owned enterprises (BUMN) to integrate public transportation across Greater Jakarta –Bogor, Depok, Tangerang and Bekasi (Jabodetabek) – said Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan on Sept 27.

To reduce the use of personal vehicles, Luhut has been tasked to form an organization dedicated to manage transportation integration. Under the new body, transportation in Greater Jakarta will no longer be managed separately by the central and regional government and BUMN, but via only one structure, Luhut said.

President Widodo has given one month for the government to sort this out, including planning the system and payment mechanism. It is also being decided whether to set one-way or membership-based tickets for passengers, Luhut added. The president also highlighted a number of aspects to be considered in the integration, including the importance of collaborating with external transportation providers in consideration of a multimodal approach, ensuring it is friendly for those with disabilities, the elderly, pregnant women and children, alongside having the proper infrastructure, ranging from street lighting to rain safety.

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Gov't Orders New Round of Rice Imports

Indonesia is to strengthen its government rice reserves (CBP) and has tasked the National Logistics Agency (Bulog) to import 1 million tons of rice from China until the end of 2023, emphasizing the government’s efforts to secure its CBP stocks until April next year, National Food Agency (NFA) Chairman Arief Prasetyo Adi said on Sep 27.

Bulog has prioritized stabilizing market prices for rice in coordination with other relevant ministries and agencies to mitigate the effects of the El Niño dry season, which has caused soaring temperatures and increased risks of flooding affecting agricultural production, Bulog Supply Chain Director Mokhamad Suyamto said.

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Indonesian Implements Precautions Against Nipah Virus

The Indonesian government is now taking precautions to prevent the spread of the Nipah virus, following the issuance of Ministry of Health Circular Letter Number HK.02.02/C/4022/2023.

There has recently been an influx of Nipah virus cases in India, Bangladesh and the Philippines. Given Indonesia’s geographic location close to a country which has reported the Nipah outbreak, there is a possibility and risk of the virus spreading here, Director General of Disease Prevention and Control Maxi Rein Rondonuwu said.

Rondonuwu called for increased supervision at ports, airports, and cross-border posts, particularly those originating from affected countries. This includes monitoring crew, personnel, passengers, transport equipment, luggage, the environment, vectors, and disease-carrying animals. Two main entry points for international arrivals, Tanjungbalai Port and Kualanamu Deliserdang Airport, have increased measures by conducting temperature checks for incoming travelers and can impose quarantine measures if necessary.

The Nipah virus is an emerging zoonotic disease which can be transmitted from animals to humans, directly between humans, or through contaminated food. Clinical symptoms can range from no symptoms to mild to severe acute respiratory infections (ARI) and fatal encephalitis. There have been no reported cases of the Nipah virus in Indonesia.

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Gov’t to Establish Standard for Air Quality Meters

The Ministry of Environment and Forestry (KLHK) will establish an Indonesian National Standard (SNI) for air quality measuring devices to ensure the accuracy of the air quality information the public receives, Jakarta Environment Agency Head Asep Kuswanto said. The agency has discovered a number of unlicensed air quality measuring devices installed across the city, reportedly generating inaccurate data.

The accuracy of air quality measuring devices depends largely on their maintenance. Some 300 buildings in the city are also preparing to install water mist generators to reduce and mitigate air pollution.

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AmCham Update is AmCham's regular newsletter on developments related to the pandemic crisis and other issues in Indonesia. It is edited by AmCham Managing Director A Lin Neumann and written by the AmCham Staff. Paul L Goddard.

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