In addition to protecting MSMEs, we will also create an entrepreneurial ecosystem that can support the development of MSMEs…
Bandar Lampung (ANTARA) - Trade Minister Zulkifli Hasan has said that the regulation of social commerce sales is a form of government protection for micro, small, and medium enterprises (MSMEs).

"The sales regulation on e-commerce and social commerce aims to protect local MSMEs and to prevent losses," he informed on Wednesday.

According to Hasan, the government will continue to support MSME development since the sector contributes up to 90 percent to the economy and 60 percent to the gross domestic product (GDP) in Indonesia.

"In addition to protecting MSMEs, we will also create an entrepreneurial ecosystem that can support the development of MSMEs from small scale to larger scale," he said.

According to the minister, the entrepreneurial ecosystem consists of four pillars, namely linkages between MSMEs, modern retail, banking financial institutions, and marketplaces.

"So MSMEs and modern retail can both develop. Especially now that offline sales are decreasing and online sales are in demand. We will connect them to the marketplace with financing to banks as well," he informed.

He said he hoped that the entrepreneurial ecosystem, combined with the arrangement of e-commerce and social commerce sales permits, would improve the MSME sector and thereby, support the national economy.

The Ministry of Trade will regulate different licensing for e-commerce and social commerce platforms through the revision of Trade Minister's Regulation (Permendag) Number 50 of 2020.

The regulation is being revised in view of social media platform TikTok, which is seeking to combine e-commerce and social commerce features through TikTok Shop. According to regulations, the two features should involve different permits, Hasan said.

The revision will highlight the prohibition on online shopping platforms from producing any product.

Earlier, Deputy Minister for Cooperatives and Small and Medium Enterprises (SMEs), Hanung Harimba Rachman, said that the revision of the regulation is in response to the shift in consumers' shopping patterns from e-commerce to social commerce, including on TikTok, which has affected MSME sales.

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Translator: Ruth Intan S K, Resinta S
Editor: Azis Kurmala
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