Minister calls to protect MSMEs in e-commerce from harmful practices

Minister calls to protect MSMEs in e-commerce from harmful practices

Minister of Cooperatives and Small, Medium Enterprises (SMEs) Teten Masduki. (ANTARA/HO-Ministry of Cooperatives and SMEs Public Relations/rst)

Social conflicts will arise if all economic sectors are controlled by big investors
Jakarta (ANTARA) - E-commerce businesses should be protected from harmful practices that can damage the micro, small, and medium enterprise (MSME) sector, Minister of Cooperatives and Small, Medium Enterprises (SMEs) Teten Masduki stated.

"Conglomeration to the domination of large businesses over the e-commerce business sector in Indonesia must be prevented and minimized to provide opportunities for MSME players to grow in the digital-based business," he noted in a press statement on Saturday.

Currently, the dominance of big businesses in the e-commerce business still continues. If that continues, then MSMEs in the digital business will definitely be unable to compete, Masduki stated.

"Big businesses only need to provide applications and then sell their own products. Social conflicts will arise if all economic sectors are controlled by big investors," he affirmed.

Over the past two years, online businesses have experienced a major leap due to the change in shopping options for people that began to migrate from conventional shopping to online shopping both in urban and rural areas.

This change has encouraged an increase in the number of business players entering the digital business, with a total of 18.5 million MSMEs, or an increase of 131 percent since before the COVID-19 pandemic.

"The digital onboarding of up to 30 million SMEs is targeted by 2024," the minister remarked.

However, the increase in the number of MSMEs entering the online business must be protected from the domination of big companies, so that MSMEs players can compete at a higher level.

India is one of the countries that is viewed as having implemented measures to ensure protection for MSMEs in entering the digital business. Masduki stated that India has created a conducive and fair business climate for the owners of businesses.

"We can learn from India as one of the countries that has protected its digital business from unbalanced competition between big businesses and MSMEs," he concluded.

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