AmCham Indonesia PRESIDENTIAL REGULATION ON · well as start-ups; and d. improvement of human...

AmCham Indonesia Unofficial Translation – August 2017

This translation is intended for information purposes only and does not constitute legal advice and any reliance on the material contained herein is at the user’s own risk.

PRESIDENTIAL REGULATION

NUMBER 74 OF 2017

ON

ROADMAP FOR THE NATIONAL ELECTRONIC COMMERCE SYSTEM FOR 2017 – 2019

THE GRACE OF GOD ALMIGHTY

PRESIDENT OF THE REPUBLIC OF INDONESIA,

Considering : a. that electronic based economy has high economic potential for Indonesia and is one

of the backbones of the national economy;

b. that in order to optimize the utilization of potential of electronic based economy,

the Government needs to push acceleration and development of e-Commerce

system, start-ups, business development, and logistic acceleration by establishing an

integrated Roadmap for the National Electronic Commerce System;

c. that based on consideration as intended in letter a and letter b, shall stipulate

Presidential Regulation on Roadmap for the National Electronic Commerce System

for 2017 – 2019;

In view of : Article 4 paragraph (1) of the Constitution of the Republic of Indonesia Year 1945;

DECIDES:

To stipulate : PRESIDENTIAL REGULATION ON ROADMAP FOR THE NATIONAL ELECTRONIC

COMMERCE SYSTEM FOR 2017 – 2019

Article 1

In this Presidential Regulation what is referred to as:

1. Roadmap for the National Electronic Commerce System for 2017 – 2019, hereinafter stated as E-

Commerce Roadmap 2017 – 2019, is document which gives guidance and procedures of preparation

and implementation of trade which transaction is based on a series of electronic tools and procedures.

2. The Government is President of the Republic of Indonesia who holds the authority of Government of

Republic of Indonesia and assisted by Vice President and ministers as intended in the 1945

Constitution of the Republic of Indonesia.

3. Regional Government is the governors, regents or mayors and regional governmental institutions as

the components of the regional government who leads the implementation of government affairs as

the right of autonomous region.



4. Implementing Management is unit who organizes technical implementation of E-Commerce Roadmap

2017 – 2019 and administratively located in Coordinating Ministry for Economic Affairs.

Article 2

(1) Establishes E-Commerce Roadmap 2017 – 2019

(2) E-Commerce Roadmap 2017 – 2019 as intended in paragraph (1) includes programs such as:

a. funding;

b. taxation;

c. consumers protection;

d. education and human resources;

e. communication infrastructure;

f. logistics;

g. cyber security; and

h. Establishment of Implementing Management for Roadmap for National E-Commerce for 2017 –

2019.

(3) E-Commerce Roadmap 2017 – 2019 as intended in paragraph (1) is stated in appendix as inseparable

component of the Presidential Regulation.

Article 3

(1) E-Commerce Roadmap 2017 – 2019 as intended in Article 2 paragraph (1) is aimed to gives strategic

guidance and procedures in acceleration of implementation of National E-Commerce within period of

2017 – 2019.

(2) E-Commerce Roadmap 2017 – 2019 has objectives programs and/or stakeholders activities to

accelerate e-Commerce growth.

(3) E-Commerce Roadmap 2017 – 2019 functioned as:

a. guidance for the Government and Regional Government to establish sectoral policy and action

plan to accelerate implementation of e-Commerce in respective field of duty as intended in

development plan document; and

b. guidance for stakeholders in organization of e-Commerce activities.

(4) E-Commerce Roadmap 2017 – 2019 as intended in Article 2 paragraph (1) is conducted with principles

of:

a. transparency to all parties;

b. certainty and legal protection;

c. prioritization and protection on national interest and micro, small, and medium enterprises as

well as start-ups; and

d. improvement of human resources skills as player in e-Commerce.

Article 4

(1) In implementation of E-Commerce Roadmap 2017 – 2019 as intended in Article 2 paragraph (1),

Steering Committee of E-Commerce Roadmap 2017 – 2019 shall be formed, hereinafter stated as

Steering Committee.

(2) Steering Committee as intended in paragraph (1) has following duties:

a. organizes coordination and synchronization of implementation of E-Commerce Roadmap 2017 –

2019;



b. steers the procedures and policies for conflict resolution and challenges on implementation of E-

Commerce Roadmap 2017 – 2019;

c. conducts monitoring and evaluation of implementation of E-Commerce Roadmap 2017 – 2019;

and

d. sets changes on E-Commerce Roadmap 2017 – 2019 in accordance to necessities.

(3) Structure of Steering Committee membership as intended in paragraph (1) comprises of:

Chairman : Coordinating Minister for Economic Affairs;

Vice Chairman : Coordinating Minister for Political, Legal, and Security Affairs;

Members : 1. Minister of Communications and Informatics;

2. Minister of Home Affairs;

3. Minister of Finance;

4. Minister of Trade;

5. Minister of Industry;

6. Minister of Cooperatives and SMEs;

7. Minister of Law and Human Rights;

8. Minister of Education and Culture;

9. Minister of Research, Technology, and Higher Education;

10. Minister of Transportation;

11. Minister of National Development Planning / Head of National

Development Planning Agency;

12. Minister of State-Owned Enterprises;

13. Cabinet Secretary;

14. Chairman of BKPM;

15. Chairman of BEKRAF;

16. Chairman of Government Procurement of Goods and Services Agency

(LKPP);

17. Chief of Staff;

18. Governor of Bank Indonesia;

19. Chairman of OJK Board of Commissioners.

(4) The position of the Governor of Bank Indonesia and the Chairman of the OJK Board of Commissioners

in the Steering Committee as intended in paragraph (3) shall not reduce the authority and

independence of the performance of their respective duties and functions under the provisions of the

laws and regulations.

Article 5

(1) Steering Committee as intended in Article 4 paragraph (1) is assisted by:

a. Organizing Team; and

b. Prominent.

(2) Duty, standard of procedures, and membership of the Organizing Team and Prominent are

established with Coordinating Minister for Economic Affairs Decree as Chairman of Steering

Committee.



Article 6

(1) To assist with duties of Steering Committee, Organizing Team and Prominent, an Organizing

Management shall be formed by Coordinating Minister for Economic Affairs.

(2) Organizing Management as intended in paragraph (1) is administratively located in Coordinating

Ministry for Economic Affairs which is coordinated by Secretary of Coordinating Ministry for Economic

Affairs.

(3) In implementing the duties of Organizing Management as intended in paragraph (1), Secretary of

Coordinating Ministry for Economic Affairs may recruit experts from individual and/or business entity

as needed.

(4) Recruitment of experts from individual and/or business entity as intended in paragraph (3) for Budget

Year 2017 may be done through direct appointment.

(5) Direct appointment as intended in paragraph (4) follows the provisions of regulations in government

procurement of goods/services.

Article 7

In implementing the duties of Steering Committee, Organizing Team, Prominent, and Organizing

Management, the amount of cost standard shall be established by the ministries who organizes

government affairs in finance as regulated in provisions of law.

Article 8

Steering Committee and Organizing Team in conducting the tasks may involve ministries, institutions,

Regional Government, business entity, and other parties as needed.

Article 9

Steering Committee reports its duties implementation to the President periodically every 6 (six) months

or any time needed.

Article 10

All cost needed for the work and duties of Steering Committee, Organizing Team, Prominent, and

Organizing Management is charged on:

a. budget of Coordinating Ministry for Economic Affairs; and

b. other legitimate fund in accordance to the provisions of law.

Article 11

This Presidential Regulation shall come into effect on the date of its legislation.

For public cognizance, ordering the legislation of this Government Regulation by placing it in the State

Gazette of the Republic of Indonesia.



Validated in Jakarta

on the date of 21 July 2017

PRESIDENT OF REPUBLIC OF INDONESIA,

JOKO WIDODO

Legislated in Jakarta

on the date of 3 August 2017

MINISTRY OF LAW AND HUMAN RIGHTS

OF THE REPUBLIC OF INDONESIA,

YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2017 NUMBER 176



Attachment

Regulation of the President of the Republic of Indonesia No. 74 Year 2017

Road Map for the National Electronic Commerce System for 2017-2019

E-COMMERCE ROADMAP 2017-2019

No Program Activity Output Deadline Person In Charge Related Institution

A. Funding

1. Funding and Financing Scheme - Loan

a. Improving access to People's Business Credit (KUR) with credit risk assessment tailored to the electronic commerce business model

The procedures and guidelines for the distribution of KUR covering credit assessment, requirements documents, business feasibility assessments to be guaranteed by the guarantee company, and loan terms adjusted to the electronic commerce based business model

October 2017 Coordinating Minister for Economic Affairs

1. Ministry of Finance

2. Ministry of Cooperatives and SMEs

3. Financial Services Authority

4. Bank Indonesia

b. Optimizing Bank / Non-Bank Financial Industry (IKNB) as a KUR distributor

a. Regulation of the Coordinating Minister for Economic Affairs which regulates the tenant of e-commerce platform developers to be recipients of KUR funds disbursed by Bank / IKNB

b. Increased intensity of Laku Pandai Program and e-money to support financial inclusion

November 2017

Coordinating Minister for Economic Affairs


2. Bank Indonesia 3. Ministry of

Communication and Informatics




5. Creative Economy Agency

2. Funding and Financing Scheme – Grants/Subsidy

a. Develop a grant provision scheme for business incubator

Grant schemes to develop and enhance business incubator capacity to provide optimal assistance to innovative start-up businesses including in the e-commerce sector

November 2017


1. Ministry of Communication and Informatics


3. Ministry of Trade


5. Ministry of Research, Technology and Higher Education


7. E-commerce and Digital Economy Association

b. Develop a grant provision scheme whose source is derived from corporate social responsibility funds from SOEs and other similar institutions

Grant provision schemes through the relocation of several corporate social responsibility funds (SOEs and large companies) that support the various stages of the e-commerce business life cycle

November 2017

Minister of State-owned Enterprises






4. Ministry of Industry

3. Provision of alternatives funding and financing schemes - grants / subsidies

Aligning grants and subsidies schemes to support the digital economy ecosystem

a. Minister of Communication and Informatics Regulation that support the utilization of Universal Service Obligation (USO) funds that are not limited only limited to telecommunications sectors, but may also be used for digital ecosystems, especially in Disadvantaged, Remote and Outermost Areas (3T), as needed.

b. Public service agency that can channel government’s grants / universal service obligation (USO) / government subsidies to digital MSME and E-commerce startup platforms, especially in 3T areas, as needed

October 2017 Minister of Communication and Informatics

1. Ministry of Cooperatives and SME

2. Ministry of National Development Planning / Naction Development Planning Agency


4. Provision of alternatives funding and angel capital / seed capital financing schemes

a. Achieving business matching between angel investors and venture capital

Capital participation scheme through angel capital or venture capital

November 2017






firms with potential e-commerce companies



5. Venture Capital Association / Ange; Capital

6. E-commerce and digital economy association

b. Using a scheme with “Foster Father” approach that can be used by businesses or industries that do not belong to big IT industry by providing seed capital and technological support to startup

Scheme of providing seed capital from “Foster Father” to IT Business Actiors

November 2017






5. Venture Capital Association / Angel Capital

6. E-commerce and digital economy association

5. Availability of alternatives funding

Developing a crowdfunding scheme as an alternative to funding,

A crowdfunding financing scheme by adopting scheme from successful

November 2017





and financing scheme - crowdfunding

including a risk management framework to properly set up the crowdfunding scheme

crowdfunding pioneers, providing investors protection and mitigating risk of crowdfunding companies, including through support from large corporations


3. Ministry of Industry


5. Ministry of State-owned Enterprises


7. Bank Indonesia 8. Creative

Economy Agency


6. Gradual Opening of Negative Investment List (DNI)

To prepare DNI related with E-commerce in the form of gradual opening with requirements

2 (two) new Indonesia Standard Industrial Classification (KLBI) for e-commerce platform that reprsents E-commerce, Marketplace, Digital Ads, On Demand Services etc.

a. Provider of e-based platform (including apps and OTTs) with investment up to

October 2017 Coordinating Minister for Economic Affairs



3. Investment Coordinating Board

4. Central Bureau of Statistics



IDR 100 billion (maximum 49% foreign ownership)

b. Provider of e-based platform (including apps and OTTs) with investment above IDR 100 billion (foreign ownership up to 100%)

B. Taxation

7. Simplifying the fulfilment of tax obligations

a. Simplify taxation procedures for e-commerce business whose turnover is below IDR 4.8 billion per year

The application of taxation rules for business actors with a total business circulation up to IDR 4.8 billion per year, applies to the e-commerce business whose turnover is below IDR 4.8 billion per year

December 2017

Minister of Finance 1. Ministy of Cooperatives and SME


3. Creative Economic Agency

b. Preparing tax incentives for e-commerce investors

1) Incentive-giving schemes for venture capital firms investing in corporate pairs that meet certain criteria, including e-commerce companies

November 2017

Minister of Finance 1. Ministry of Cooperatives and SME



2) Tax incentive analysis for angel investors and other funding sources that

December 2017

Minister of Finance 1. Coordinating Minister for Economic Affairs



fund startup in the early stages


3. Ministry of Cooperatives and SME


5. E-Commerce and Digital Economy Association

8. Preparation of registration procedures for e-commerce actors

Preparing regulation of obligations of e-commerce actors to register themselves, including foreign business actors

Regulation of the Minister of Trade concerning Provisions and Procedure for Registration and Issuance of Identity Number of Business Transactions Entities through Electronic Systems (TPMSE)

September 2017sta

Minister of Trade 1. Ministry of Finance



9. Equality of tax treatment

Preparing regulation that support the taxation of foreign and local e-commerce business in accordance with the legislation in the field of taxation

Regulation of minister / head of relevant institutions

February 2018





C. Consumer Protection



10. Preparing of e-commerce transaction regulation

Finalize the draft regulations on Trade Transactions through electronic systems

Government regulations on trade transactions through electronic systems

October 2017 Minister of Trade 1. Coordinating Minister for Economic Affairs

2. Ministry of Law and Human Rights

3. Ministy of State Secretary

11 Building consumer confidence

Performing regulations harmonization consistently

A comprehensive legal framework that will accommodate:

a. Classification of e-commerce business actors

b. Electronic Certification

c. Accreditation process

d. Payment mechanism policy

e. Consumer protection and industry-specific players for e-commerce transactions

f. Online dispute resolution

g. The internalization of consumer-specific e-commerce

November 2017


1. Ministry of National Development Planning / National Development Planning Agency




5. Central Bureau of Statistics

6. Bank Indonesia 7. Financial

Services Authority

8. E-commerce and Digital



protection in the national strategy of consumer protection

h. E-commerce actor information application system

Economy Association

12. Development of National Payment Gateway

Developing NGP gradually that can improve electronic retail payment services, including e-commerce

a. A payment system that accommodates the trade and spending of government goods / services through e-commerce

October 2017 Minister of Finance 1. Government Procurement Agency (LKPP)

2. Bank Indonesia

b. Terms of arrangement of means of payment transaction processing

October 2017 Governor of Bank Indonesia




c. Conceptual design of development of national payment gateway, including to support e-commerce

November 2017

Governor of Bank Indonesia






No Program Activity Output Deadline Person in charge Related Institution

d. increased efficiency and protection the existent of payment system

4. E-Commerce and Digital Economy Association 5. Payment Gateway company

e. Subject matters of NPG arrangement f. The National Payment Gateway implementation

April Governor of Bank Indonesia

Ministry of Communication and Informatics

D. Education and Human Resources

13. Awareness-raising and education for consumers, SMEs, and the entire electronic commerce-based ecosystem

Provides education for all e-commerce ecosystems

a. A continuing education program to educate the public about the use of e-commerce and industry development

b. Mechanism and identification of those who responsible for implementing the program and developing the content of the program

c. The socialization of e-commerce to communicate to the public the types of illegal products within the jurisdiction of Indonesia

d. National awareness campaign of e-commerce through online and offline media throughout Indonesia

e. E-commerce promotion through informal campaigns (among others through: National online shopping days/HARBOLNAS)

2017-2019 Minister of Communication and Informatics

1. Ministry of Education and Culture

2. Ministry of Research, Technology and Higher Education

3. Ministry of Cooperation and Small and Medium Business




14. Debriefing to policymakers with an understanding of e-commerce in accordance with the role of each stakeholders

Carrying out e-commerce education for policymakers so that stakeholders gain an understanding of e-commerce according to their respective roles

E-commerce materials integrated into capacity building materials for policymakers

September 2017

Minister of Trade 1. Ministry of Communication and Informatics

2. Institution of State Administration

15. Preparation of incubation programs for start-up

Arrange incubation program for start-up to help start-up development especially at early stage

SOEs that support and manage the National Incubator Program that will assist the development of start-up actors by providing management training and workspaces

October 2017

BEKRAF 1. Ministry of Communication and Informatics

2. Ministry of SOEs 3. Ministry of Industry 4. Ministry of Trade 5. Indonesian Chamber of

Commerce and Industry 6. E-Commerce and Digital

Industry Association

16. Formal Education for e-commerce talent

Preparing for talent needs in order to maintain the sustainability of ecosystem e-commerce through formal education

a. Curriculum implementation covering e-commerce related subjects in various educational units

b. Incentive scheme for educational or e-commerce focused organization or educational units in order to increase the number of information technology graduates to drive industry growth significantly

November 2017

1. Minister of Education and Culture

2. Minister of Research, Technology and Higher Education




17. The development of e-commerce education facilitator

Developing e-commerce education facilitator

a. Education facilitator e-commerce

b. Comprehensive education for the e-commerce ecosystem by the facilitator

September 2017

Minister of Trade 1. Ministry of Communication and Informatics

2. E-Commerce and Digital Economy Association

E. Communication Infrastructure

18. Improving communication infrastructure (network internet speed, and security)

Increased national communication infrastructure as the backbone of e-commerce industry growth

a. Technical analysis documents and market studies of e-commerce infrastructure and impact evaluation results

b. Free domain and speed internet access that supports the growth of the e-commerce industry.

c. Broadband infrastructure in order to increase internet speed throughout the territory of Indonesia

July 2019 Minister of Communication and Informatics

1. Coordinating Ministry for Politic, Legal and Security

2. National Development Planning Agency

F. Logistic

19. Improve e-commerce logistic through the National Logistic System (Sislognas) Blueprint

Utilize the Sislognas Blueprint to increase the speed of e-commerce logistic delivery and reduce shipping cost

a. Implementation of sislognas blueprint, including special elements that will provide benefits to the e-commerce sector

b. Standardization of electronic data exchange system for e-commerce and logistic business actors

November 2017

Coordinator Minister for economic

1. Ministry of Transportation

2. Ministry of Financial 3. Association of National

Companies Shipping and Delivery of Goods Indonesia

20. Implementation of e-commerce logistic facilities for micro, small,

The development of e-commerce logistic facilities in particular to support the

a. Mechanism of logistic outsourcing for micro, small, and medium enterprises, or

October 2017


1. Ministry of Transportation

2. Association of National Companies Shipping



and medium enterprises

development of e-commerce for small business, macro and medium enterprises

b. An e-commerce logistics facility developed by logistics service providers

and Delivery of Goods Indonesia

21. Increased capacity of local/national logistic service providers to meet shipping needs across Indonesia

a. To strengthen local/national logistic service providers with foreign competitiveness

a. Enhancing the capacity of competent local/national logistic service providers in e-commerce through the guidance and provision of capital access (KUR for MSMEs)

October 2017



2. Ministry of Financial 3. Ministry of Trade 4. Ministry of

Cooperatives and Small and Medium Enterprises

5. Ministry of transportation

6. Association of National Companies Shipping and Delivery of Goods Indonesia

b. Revitalization, restructuring and modernization of PT POS Indonesia (Persero) as the national postal service provider

PT Pos Indonesia (Persero) is modern and competitive

November 2017

Minister of State-owned Enterprises

1. Coordinator Ministry for Economic


3. PT Pos Indonesia (Persero)

22. Development of logistic system from rural to urban community

Developing of logistic system from rural to urban community

a. E-commerce application that able to connect farmers/fishmen/business actors in the rural area with

April 2019 Coordinator Minister for economic

1. Ministry of Trade 2. Ministry of




collecting and/or consumer traders

b. Education of business actors and local traders towards e-commerce

c. Regional distribution center and distribution center based on information system

d. Access to capital (KUR) e. Local logistic services/branch

national logistic services f. Financial network g. Village ICT infrastructure h. Village transportation

infrastructure i. Pilot project in several cities

for village-to-village logistics programs (Sentra onion, chili, and vegetable)

3. Ministry of Cooperatives and Small and Medium Enterprises

4. Ministry of transportation

5. Ministry of Public Works and Public Housing

6. Ministry of Agriculture 7. Ministry of Industry 8. Ministry of

development of Disadvantaged Regions and Transmigration

9. Bank Indonesia 10. Financial Services

Authority

G. Cyber Security

23. Increased security of electronic transaction activity

Improving the application of cyber security principles by online merchants and/or operators

General operating procedures and regulatory standards related to consumer data storage, certification for the safety of consumer data, and the formulation of regulations for cybercrime

October 2017

Coordinating Minister for Politic, Legal and Security


2. Ministry of Financial 3. Bank Indonesia 4. Financial Services

Authority 5. The National Police of

Republic of Indonesia

24. Monitoring and enhancing public awareness of cybercrime

Raising public awareness of cybercrime through consumer and

a. Increase consumer awareness to be able to detect and prevent the occurrence of cybercrime

November 2017

Minister of Communication and Informatics

1. Coordinating Ministry for Politic, Legal and Security



business education about the importance of electronic transaction security

b. Standard Operational Procedures for online merchants and/or operators to apply the principles of prudence and security



25. Development of a model of national supervision system in e-commerce transactions

Developing a model of national supervision system in e-commerce transactions

a. E-commerce transaction that have been using the model of national supervision system

b. Information technology and security surveillance system for integrated electronic transaction activities.

January 2018 Minister of Communication and Informatics

1. Coordinating Ministry for Economic

2. Ministry of Financial 3. Ministry of Trade 4. Bank Indonesia

H. Establishment of Organizing Management of the SPNBE roadmap 2017-2019

26. Establishment of Organizing Management of the SPNBE roadmap 2017-2019

Forming organizing management of SPNBE Roadmap 2017-2019, which is administratively under Coordinating Ministry for Economy

a. Budget to support the activities of the steering committee, the executive team, and the organizing management of the implementation of SPNBE Roadmap 2017-2019

2017-2019 Coordinating Minister for Economy

1. Ministry of Financial 2. Ministry of


3. National Development Planning Agency

b. Standard cost in the implementation of Roadmap 2017-2019

October 2017

Minister of Finance 1. Coordinating Ministry for Economy


c. Ministerial decree of coordinating ministry for economic regarding the establishment of organizing

October 2017

Coordinating Minister for Economic




management of SPNBE Roadmap 2017-2019

d. Individual experts and/or business management agency

October 2017

Coordinating Minister for Economic


2. Ministry of Financial 3. Government

Procurement Policy Institute

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