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|At the Indonesian House of Representatives Plenary Meeting for the Ratification of the AAEC Bill, in Jakarta, on September 7. (Source: Indonesian Ministry of Communication and Informatics)|
Kuala Lumpur - The Indonesian Government and the House of Representatives (DPR) have agreed to ratify the ASEAN Agreement on Electronic Commerce (AAEC) Bill.
Indonesian Trade Minister Muhammad Lutfi said the ratification of the AAEC is an opportunity to expand Indonesia's e-commerce sector to the ASEAN level after showing positive growth in the country.
The main priority Indonesia needs to focus on is making the AAEC a tool to boost its economic activity and domestic policy adjustments, which can ultimately encourage economic recovery from the COVID-19 pandemic through the use of digital technology, especially through electronic trading systems (PMSE).
The bill is intended as a way to increase the value of trade in goods and services through the use of PMSE; increasing the competitiveness of domestic business actors, especially micro, small and medium enterprises (MSMEs); and the creation of solutions to enable national MSMEs to participate in the global value chain.
It is also expected to facilitate trade transactions between ASEAN regions, encourage the creation of an enabling environment for the use of PMSE, and strengthen cooperation among ASEAN member countries to develop and promote e-commerce to create inclusive growth and reduce inequality in the bloc.
The decision to ratify the AAEC shows a significant meaning because the agreement serves as the legal basis for cooperation in the intergovernmental e-commerce sector in ASEAN. It is also expected to improve Indonesia’s competitiveness in the ASEAN region.