Jakarta (ANTARA) - Indonesia's Cooperatives and Small and Medium Enterprises Minister (KemenKopUKM) Teten Masduki and Business Competition Supervisory Commission (KPPU) Head M. Afif Hasbullah agreed to create a regulation for digital market to create healthy business competition climate.

“We will jointly manage the online market. KemenKopUKM, in the interest of market competition, expressed hope that a fair climate can be realized. Meanwhile, KPPU is responsible for monitoring the indication and potential for a trade monopoly,” Minister Masduki noted in a statement received here in Jakarta on Friday.

The minister stated that the current regulation is not yet strong enough to manage the digital market. To this day, discriminatory practices, such as shadow banning, against independent sellers are still apparent on digital platforms.

Another discriminatory practice is an algorithm monopoly that can direct consumers to products sold by the company managing the platform and its affiliated companies.

“The discriminatory practice is done with a specific technology, so it is easy for the platform managers to read the traffic and consumers’ behavior. Consumers are then directed to buy their own products. On the other hand, Micro, Small, and Medium Enterprises (UMKM) actors are forced to use their delivery service,” he pointed out.

Thus, the minister emphasized the need for a digital market regulation to realize a fairer digital ecosystem. At least three aspects need to be managed to solve the problems.

Firstly, platform rules need to be revised, especially regarding platform integration, which means managing the data algorithm to prevent deviation.

Masduki noted that traffic from people using social media should be differentiated from those individuals using e-commerce. If the two are combined, private data misuse is more likely to occur.

Second, reinforcement in the trade aspect that will lead to fair business competition and will not lead to market monopolies is deemed necessary.

The third area of focus is a regulation regarding imports by strengthening, regulating, and limiting the incoming and outflow of goods.

“Goods that enter Indonesia must fulfill standards from Indonesia and its country of origin, and even for 'cross-border online,’ we need to enforce the minimum price of above US$100 (Rp1,562,000) per unit,” he remarked.

Similarly, Head of KPPU M. Afif Hasbullah stated that the development of e-commerce, social media, and its devices is occurring at a massive scale, but Indonesia has yet to have a regulation that specifically manages the digital trade.

He admitted that the current regulation in KPPU is no longer relevant, as it leans more on managing conventional trade. In future, a law (Undang-Undang) on the digital market may be drafted.

“Today, we are focused on placing a law on the digital market in the spotlight, and hopefully, later, we can play a role in being involved in it,” he stated.

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Translator: Kuntum K, Azis Kurmala
Editor: Rahmad Nasution
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