E-commerce crucial to reducing poverty: Riady

Jakarta (ANTARA News) - Founder of Lippo Group Mochtar Riady has opined that the system of electronic commerce, or e-commerce, plays an important role in the fight against poverty.

"It requires conditions, such as adequate telecommunications systems, secure payment systems, and a middle man that can guarantee," Riady remarked during the Indonesia Change Management Forum here on Monday.

Riady believes that improving the system to address the trade gap is an important factor that should be taken into account in order to reduce poverty.

Riady pointed out that the rural communities always purchase items at prices that are more expensive, as the merchandise has to go through a middle man.

Likewise, when sold, the selling price of the commodities, produced by the rural communities, becomes cheaper, as they have to go through a middle man before reaching the city.

"In the past, it was difficult to manage this issue, but now, it has becomes easier, as with the onset of the digital economy of e-commerce, the sellers and buyers can contact each other," Riady explained.

He cited the success achieved by Jack Ma in initiating the digital trading company Alibaba from China.

Riady explained that Ma was able to make Alibaba a digital shopping platform as well as a guarantor that later led to the swift development of the digital economy in China.

He believes that the digital economy in Indonesia still has an opportunity to develop.

The pressing need of the hour is to align the industry in line with the new developments related to the digital economy, he added.(*)

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