Jakarta, CNBC Indonesia – The government is currently, through the Ministry of Trade, preparing price discount rules for e-commerce platforms. In the drafting regulation, it is hoped that it can balance the discount price in order to prevent predatory pricing practice
Predatory pricing is a sales strategy by fixing very low prices with the aim of removing competitors from the market and attracting buyers at low prices.
The Minister of Cooperatives and Small and Medium Enterprises (Kemenkop UKM) Teten Masduki also admitted that there are cases where the sale of imported Chinese goods on one of the digital platforms at very cheap prices, which makes domestic MSME products less competitive.
“This is a dangerous time bomb for digital market trading. We have communicated with the digital platform earlier and with the Trade Minister it looks like we need to regulate the issue of price discounts. Currently there is a vacuum in the regulation,” explained Teten in the Profit program, Friday (5/3/2021 ).
In the 2021 Ministry of Trade Meeting, Thursday (4/3/2021), the Minister of Trade Muhammad Lutfi also responded to the president’s complaint by preparing a regulation that is targeted to be completed by the end of March.
“I make sure it will not be too long, in March this will be finished, I will arrange for sellers in Indonesia, sell in Indonesia. Must follow Indonesian regulations and the Ministry of Trade will act as a referee, as a regulator to ensure that trade here is fair and beneficial,” he explained, quoting CNN Indonesia. , Thursday (4/3/2021).
But unfortunately, until now the Association has not been involved in the formation of this new regulation. Confirmed to the Chairman of the Indonesian E-commerce Association (idEA) Bima Laga.
“There has been no meeting yet at the Ministry of Trade, we hope that the association will be involved in this new regulation,” he explained to CNBC Indonesia, Wednesday (17/3/2021).
Bima is still reluctant to comment on whether there is a proposal given to the Ministry of Trade for this predatory pricing rule.
“Regarding this new regulation, I cannot comment yet, we are still waiting for the substance from the Ministry of Trade,” explained Bima.
From the viewpoint of business actors who are members of the association, they support advancing local MSMEs through the marketplace. The general chairman of idEA, Bima Laga, said that idEA is open to encouraging the level playing field for local and imported products.
“Whether there is predatory pricing or not, we focus on helping local MSMEs to take advantage of the digital platform,” said Bima.
He explained the rules predatory pricing it refers to PP 80 of 2019 concerning Trading Through Electronic Systems. There it regulates how trade and consumer protection are.
“In PP, it is also regulated that we (e-commerce) have to produce local products that are domestically, but if the government wants to regulate other things that have not been regulated by PP 80 of 2019 we are very open,” he explained.
Bima explained that PP 80 of 2019 regulation has not yet regulated the percentage of local products that must be sold in e-commerce. The association also continues to encourage MSMEs to have high competitiveness.
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