Indonesia to finalize regulation on e-commerce

The Investment Coordinating Board ( BKPM ) is finalizing a regulation that sets guidelines for e-commerce businessplayers, after the government opened the sector to foreign investors. (www.thejakartapost.com)

The BKPM will allow 100 percent foreign ownership of electronic commerce businesses with a minimum investment of Rp 100 billion ( US$8 million ) or businesses that create 1,000 employment opportunities, director for business empowerment Pratito Soeharyo said on Wednesday.

“The regulation is expected to be completed next month,” he said, adding that it would guide small and medium enterprises that cooperated with foreign investors. Presidential Decree No. 44/2016 on the negative investment list has had a positive impact on the e-commerce sector, with ownership being more open, he said.

The BKPM limits foreign ownership at 49 percent for investments below Rp100 billion, Pratito added. BKPM data show that foreign investment in web portals reached $5 million with 24 projects in the first quarter of this year. In 2015, investment reached $19 million with 67 projects.