In October this year, Indonesia released a policy
roadmap intended to support and encourage growth in the
national e-commerce market. This market is expected to reach
$130 billion by 2020.
The roadmap will serve as a policy guide to the relevant
governmental agencies in formulating and implementing
regulations in this area. It covers eight areas: funding;
taxation; consumer protection; human resource development;
logistics; infrastructure; security; and oversight.
The roadmap envisions that government-subsidised loans
(known as KUR) will play a factor in providing funding to
e-commerce start-ups. This is in addition to money from venture
capital firms, angel investors and other sources, including
The government also anticipates providing some form of tax
reduction to local investors investing in e-commerce start-ups,
as well as the e-commerce entities themselves. The government
has also promised equal tax treatment for both domestic and
The roadmap aims to enhance the national logistical system
to increase delivery efficiency in terms of both time and cost.
This includes a vision to restructure and modernise PT Pos
Indonesia, the national post company.
The roadmap also prioritises broadband internet development
and penetration in all areas of Indonesia and setting up a
national oversight system for e-commerce transactions and cyber
securities. It is part of a series of economic policy packages
issued under President Joko Widodo, designed to increase
Indonesia's economic competitiveness.
Indonesia's senior economic minister has stated that there
are currently 93.4 million internet users in Indonesia and 71
million smartphone users. The roadmap has been developed with
the goal of making Indonesia the largest digital economy in
southeast Asia by 2020, with thousands of so-called tech
entrepreneurs locally, and an e-commerce value of $130
Oene Marseille and Emir Nurmansyah