New Regulation on E-Commerce
After five long years since the issuance of Law No. 7 of 2014 on Trade (the “Trade Law”), the Government of Indonesia finally issued an implementing regulation on e-commerce on 20 November 2019, through Government Regulation No. 80 of 2019 on Trade through the Electronic System (“GR 80/2019”). This regulation is part of the Government’s efforts to encourage internet-based transactions and trading as part of making Indonesia 4.0.
GR 80/2019 has 19 chapters and an extensive scope. Its aim is to provide legal certainty for the continuous development of electronic-based trading activities (Perdagangan Melalui Sistem Elektronik – “E-Commerce”) in Indonesia, and covers, among other things, E-Commerce parties, the general requirements and obligations for E-Commerce, the protection of consumers and personal data and administrative sanctions for violations of GR 80/2019.
This newly issued regulation came into effect on 25 November 2019, and existing E-Commerce business practitioners engaged in E-Commerce business activities before GR 80/2019 became effective are required to adjust and comply with this regulation within two years of 25 November 2019 (ie by 25 November 2021).