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Today, the development of information and communication technology has reached an advanced and unstoppable stage. It is undeniable that the impact of technological advancements also influences the business world, bringing benefits and conveniences to the public in conducting business. One significant development is the emergence of electronic commerce, which has become a crucial component in the business world, especially in Indonesia. Examples of electronic platforms frequently used by Indonesians for commerce include Tokopedia, Shopee, Blibli, and others. This phenomenon has transformed traditional business methods into digital-based ones, introducing a new dimension to the business world.
In this article, we will discuss the parties involved in Electronic Commerce.
Legal Basis:
- Government Regulation No. 80 of 2019 concerning Electronic Commerce (“PP 80/2019“);
- Regulation of the Minister of Trade No. 31 of 2023 concerning Business Licensing, Advertising, Development, and Supervision of Business Actors in Electronic Commerce (“Permendag No. 31/2023“);
- Definition of Electronic Commerce
According to Article 1 Number 2 of PP 80/2019, Electronic Commerce (Perdagangan Melalui Sistem Elektronik) refers to commerce in which transactions are conducted through a series of electronic devices and procedures (“PMSE”).
- Business Actors in PMSE
As defined in Article 1 Number 6 of PP 80/2019 in conjunction with Article 1 Number 6 of Permendag No. 31/2023, PMSE Business Actors is an individual or a business entity, either incorporated or unincorporated, which may be a domestic business actor or business actor domiciled abroad and those that operate business activities in the PMSE sector (“Business Actors”).
Business Actors consist of:
- Domestic Business Actors
Domestic Business Actor is an Indonesian citizen or business entity established and domiciled in the jurisdiction of the Unitary State of the Republic of Indonesia, which operates business activities in the PMSE sector. Domestic Business Actors include:
- Domestic Merchants;
- Domestic PMSE Organizer (PPMSE); and
- Domestic Intermediary Service Organizer (PSP).
- Foreign Business Actors
Foreign Business Actor is a foreign citizen or a business entity established and domiciled outside the jurisdiction of the Unitary State of the Republic of Indonesia which operates business activities in the PMSE sector in the territory of the Republic of Indonesia. Foreign Business Actors include:
- Foreign Merchants;
- Foreign PMSE Organizer (PPMSE); and
- Foreign Intermediary Service Organizer (PSP).
| Business Actors | Description | Legal Basis |
| Merchant | Business Actors that operate PMSE by using facilities created and managed by themselves directly or through facilities owned by a PPMSE, or other Electronic Systems that provide PMSE facilities. The scope of the definition of Merchants includes Business Practitioners that conduct Electronic Offering through Electronic System owned or managed by themselves, or through facilities provided by domestic PPMSEs and/or foreign PPMSEs. Shall include merchants who operate PMSE through Social Media which provides PMSE facilities. Does not include sellers that only sell Goods and/or Services in a temporal and non-commercial manner. In the form of individuals or business entities. | Article 1 Number 10 of PP 80/2019 j.o. Article 1 Number 10 of Permendag No. 31/2023 Elucidation of Article 5 of PP 80/2019 Article 2 Paragraph (2) of Permendag No. 31/2023 Elucidation of Article 5 of PP 80/2019 Article 6 point a of PP 80/2019 |
| PPMSE | Business Actor that provides electronic communication facilities used for trading transaction. Includes all parties that provide Electronic System facilities and/or Services so that it allows a transaction for PMSE business activities can be carried out. The said Business Practitioners shall organize their services by providing an application system to be used as an Electronic Communication facility to facilitate PMSE settlement and/or Trade business activities, covering various business models of the PMSE organization system. Business models including: a) Online Retail, e.g., Alfagift and Klik Indomaret. Marketplace, e.g., Shopee, Blibli, Tokopedia, and Lazada. b) Online Classified Advertisement, e.g., Mobil123, Craigslist, and OLX. c) Price Comparison Platforms, e.g., Pricebook and Price Area. d) Daily Deals, e.g., Groupon. f) Social Commerce, e.g., Facebook Marketplace and TikTok Shop. In the form of individuals, business entities, communities, or government institutions. | Article 1 Number 11 of PP 80/2019 j.o. Article 1 Number 9 of Permendag No. 31/2023 Elucidation of Article 5 of PP 80/2019 Article 2 Paragraph (3) of Permendag No. 31/2023 Article 6 point b PP 80/2019 |
| PSP | Business Actor that provides electronic communication facilities other than telecommunications organizers that only function as an intermediary in electronic communications between senders and recipients. Includes providers of information searching system facilities (search engine), providers of space for storing information permanently (hosting) or temporarily (caching). In the form of individuals or business entities. | Article 1 Number 12 of PP 80/2019 j.o. Article 1 Number 11 of Permendag No. 31/2023 Elucidation of Article 5 of PP 80/2019 Article 6 point c of PP 80/2019 |
Thus, understanding Electronic Commerce (PMSE) is crucial in today’s digital era. By adhering to the latest regulations, businesses can operate safely, efficiently, and in compliance with the applicable laws. Ensure your business stays ahead by following PMSE rules, minimizing risks, and maximizing opportunities in the dynamic digital market.
CSI Consultant, an integrated consulting company and law firm in Jakarta, assists business actors in organizing and implementing their business and investments, including labour, industrial relations, tax, business transactions, dispute resolution in litigation and non-litigation, and compliance. Should you have more queries, please do not hesitate to contact us.
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