Indonesia Preparing Cross Border E-Commerce Regulation

Aug 2019

The Indonesian government is preparing a cross border e-commerce regulation with the aim of controlling the flow of imported goods in the market. Currently, the government is reviewing import trends on e-commerce platforms. They are also in talks with e-commerce platforms officials and trade partners.

It is estimated that 9 out of 10 items sold in Indonesia’s e-commerce platforms such as Tokopedia, Lazada, Shopee and Bukalapak were imported. The Finance Ministry’s Customs and Excise Directorate General recorded a 9.11 percent growth in 2018 in imported products sold through e-commerce platforms.

Indonesian customers can purchase items directly from overseas through e-commerce platforms such as Amazon, Ali Express and eBay. For purchases below USD 75, buyers are not subjected to any import duties.

In 2018 the Indonesian government drafted PMK210/2018 to make all sellers and merchants on online platforms to be tax compliant. The marketplace platforms would have then become a tax deposit agent, with the responsibility to collect, record and deposit tax data for the Directorate General of Taxes of Indonesia. The regulation was supposed to take effect on 1 April 2019 but the implementation was halted to ensure better coordination between relevant government institutions and industry players.

(Sources: The Jakarta Post; Jakarta Globe)

About Us

Orissa International helps companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 companies that includes distributors, resellers, system integrators and local manufacturers, that we have built through advising and guiding more than 5,000 companies with their market expansion into the ASEAN region over the last 25 years.

Orissa International is headquartered in Singapore, with additional offices in Malaysia, Indonesia, Thailand, Vietnam, and the Philippines.

Our Services