Foreign Sellers in e-Commerce Need to Have an Indonesian Legal Entity: YLKI

TheIndonesia.id - The Executive of the Indonesian Consumers Foundation (YLKI) Sudaryatmo said that foreign sellers in e-commerce must have Indonesian legal entities, so they will follow the legal rules in force in the country. This proposed regulation is to protect consumers.

"What has happened so far is that the sellers are abroad and make transactions with Indonesian consumers through foreign e-commerce in Indonesia," said Sudaryatmo in a statement received in Jakarta, Saturday, July 9, 2022.

According to him, in the import category, a seller should be in Indonesia. "So if there is a problem, consumers can immediately make a complaint, not through the platform like so far. That way, it will be fairer for consumers," said Sudaryatmo.

The Indonesian government is needed to be firm in overseeing trade on e-commerce platforms. According to him, this rule is very important, especially to protect consumers.

“Foreign sellers who sell products in e-commerce must be legal entities in Indonesia so that if something goes wrong they can ask the state to be held accountable. In this case, consumers will be protected when making transactions. Sellers from abroad can also be subject to tax, so there is income for the state," he said.

E-Commerce expert Hadi Kuncoro also revealed the importance of consumer protection in electronic commerce. It absolutely must be provided by an e-commerce platform.

"In the past, it was a contact center, now there are additional complaints via digital, so it's getting stronger," he said.

Kuncoro said that consumer protection needs to be carried out on all products, especially for products used on the body such as cosmetics, as well as those consumed such as vitamins.

“The e-commerce operator must take responsibility and ensure that the goods have a distribution permit. The Ministry of Commerce must also conduct oversight. For drugs, Indonesia Food and Drug Authority must come in," he said.

The Ministry of Trade through the Directorate General of Consumer Protection and Orderly Commerce (Ditjen PKTN) noted that consumer complaints were dominated by online sales or the electronic commerce sector.

"Resolving consumer complaints remains a priority for the Ministry of Trade as a manifestation of the government's concrete actions in protecting Indonesian consumers, creating empowered consumers and orderly business actors," said Director General of PKTN Veri Anggrijono in a statement received in Jakarta, last Friday.

The Directorate General of PKTN noted that 3,692 consumer complaints were served in the first semester of 2022. A total of 86.1 percent or 3,181 complaints came from the electronic commerce (e-commerce) sector.

Anggrijono added that the dominance of the electronic commerce sector was driven by social restrictions which made many business sectors switch to digital transactions by offering competitively priced products and also increasing interest in online shopping. Complaints in the e-commerce sector include the food and beverage sector; financial services; transportation services; tourist; and electronics/motor vehicles.