Indonesia will limit online sales of imported goods worth under US$100, Trade Minister Zulkifli Hasan said on Friday, in a potential blow to the country’s booming e-commerce sector.
The move will apply to both online marketplaces and retailers on social media platforms, Zulkifli told reporters, adding that it aims to protect small and medium enterprises in the country.
Ministries were expected to finish coordinating changes to existing rules by Aug 1, he said, adding that imported goods will also be required to obtain a supplementary license, known as the Indonesian National Standard.
The minister did not give details on how Southeast Asia’s largest economy, whose population numbers over 270 million, plans to enforce the measure.
The country’s e-commerce sector reached $59 billion in global merchandise value last year and is expected to grow to $95 billion by 2025, according to a 2022 industry report by Alphabet’s Google, Temasek Holdings and Bain & Company.
President Joko Widodo has repeatedly stated concerns about predatory pricing for cheap, Chinese-made goods and urged Indonesian consumers to shun imported products.
TikTok, which has two million sellers in Indonesia, said this week it had no plans to roll out a cross-border business in Indonesia after officials expressed concerns the firm’s e-commerce push could flood the country with Chinese products.
- Writing by Fanny Potkin; Editing by Kanupriya Kapoor, of Reuters.
