Jakarta, Klinik Farma – Secretary General of the Ministry of Commerce (Kemendag) Suhanto carried out the harmonization Regulation of the Minister of Commerce (Permendag) No. 50/2020 on the provisions for business licensing, advertising, guidance and supervision of business entities in trade through electronic systems still in the process of negotiation between ministries/departments (K/L).
“Harmonization is still ongoing. Harmonization between ministries and departments is still not complete,” Suhanto said at a meeting at the Ministry of Commerce on Friday (August 25, 2023).
He said that at present, his party is still receiving a lot of information from the association, and his party will first accept the information and then pass it on to the relevant ministries/institutions again.
“We still have many proposals from the association, of course, we will take them into account first, and then we will again inform the relevant ministries/institutions about them,” he said.
Previously, Association of E-Commerce Logistics Entrepreneurs (APLE) Chairman Sonny Harsono criticized the government’s plan to ban e-commerce from selling cheap imported goods valued at $100 or about IDR 1.52 million (exchange rate of IDR 15,296). He even threatened to sue PTUN if the government did not cancel the plan.
According to Sony, this policy does not benefit MSMEs and instead may paralyze MSMEs in the country. He said that there are four threats that will hurt Indonesia if the policy is adopted, namely the encouragement of illegal imports, the risk of paralysis of Indonesian MSMEs, the possibility of retaliation from other countries, and the threat of mass layoffs.
“And most importantly, what is actually harming the MSMEs themselves. We wrote, conveying our objections. We will escalate the situation, but if all methods get stuck, we will take legal steps, we will file a lawsuit against this policy in the Administrative Court,” he said. “, he said in an official statement quoted on Friday (08/25/2023).
However, Suhanto stated that the revision of Permendag Number 50 of 2020 would not harm MSMEs and the Indonesian people as they received information from the Ministry of Cooperatives and Small and Medium Enterprises (Kemenkop UKM).
“Oh no, that’s not possible (compromising the MSME). In fact, we also receive information from the Ministry of Cooperatives and Small and Medium Enterprises, from Mr. Teten. Mr. Teten, as a UKM coach, must have filtered information from UKM to include it in the policy,” he said.
Moreover, according to Suhanto, businessmen reject the revision of Permendag number 50 of 2020 precisely because they have their own interests.
“In fact, the point of view of people is different. Sometimes, if business actors look at their interests, the interests of big and small (business actors) differ,” he concluded.
Populist politics
Meanwhile, director of the Center for Economic and Legal Studies (CELIOS) Bhima Yudhistira said that import control policies in e-commerce could lead to the creation of illegal imports of goods.
According to Bhima, the government should have emphasized predatory pricing when reviewing existing rules. Bhiman stressed that this policy not only harms MSME players, but can also lead to a reduction in government revenues.
“From the beginning of the loss of VAT, corporate income tax, employee income tax. Maybe 40-50 trillion could be lost per year with just a $100 ban,” Bhima said in an official statement released by the Association of E-Commerce Logistics Entrepreneurs (APLE). .
Bhima believes that the government’s policy does not take into account excessive impacts and does not involve all stakeholders. He even said such policies were more likely to be adopted due to populist speculation ahead of the 2024 elections.
“This policy is confusing. Tax issues, the Ministry of Finance and customs should speak. The impact of tax opportunities should be considered. The Ministry of Labor should speak out, there are MSMEs hiring employees, there will be layoffs,” he said.
Bhima also said that the ban on imports below $100 is an ultra-protectionist form that is different from President Joko Widodo’s comments on MSMEs at the ASEAN level.
Responding to this, Rossa Novitasari, Assistant Deputy for SME Finance and Investment at the Ministry of Cooperatives and MSMEs, stated that the revision of Permendag No. 50/2020 is designed to ensure that MSMEs, producers and the public can be protected in the digital ecosystem. He hopes that stakeholders will receive concrete input from the government so that the policies adopted will benefit the country and especially MSMEs.
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