Sellers beware! Indonesia to regulate predatory pricing in e-commerce markets

Indonesia will issue a regulation to prevent predatory pricing by e-commerce platforms, including for Chinese products, as President Joko Widodo urges consumers in Southeast Asia’s largest market to avoid imported products, Reuters reported .

Some government officials also said at the Ministry of Trade meeting that we must love our own products (Indonesian local products).

Trade Minister Muhammad Lutfi told a news conference that the comments were in response to concerns that Chinese manufacturers were copying products designed by Indonesian small and medium-sized enterprises and selling them at low prices on foreign e-commerce platforms, as such behavior was a blow to local producers.

Lutfi also said artificial intelligence was identified as a top-selling product and that it was difficult to file a complaint with the World Trade Organization because of the use of digital platforms that masked the origin of the goods .

The Chinese Embassy in Jakarta did not immediately respond to a request for comment.

Indonesia will introduce a new measure this month to stop "predatory pricing practices" through online trading platforms , the country's trade minister said, adding that we will regulate e-commerce transactions.

Last year, Indonesia lowered the threshold for imposing import taxes on consumer goods sold through e-commerce in a bid to reduce overseas shipments, particularly imports from China.

China is Indonesia's largest trading partner and a major investor, but Jakarta complains about a persistently high trade deficit.

According to Indonesia's trade ministry, the average annual deficit in goods trade has been $14 billion over the past six years .

Indonesian Foreign Minister Retno Marsudi told Chinese State Councilor Wang Yi during a visit to Jakarta in January that China should remove trade barriers on products such as palm oil , fisheries and fruits to help address trade imbalances.

Predatory pricing is a means of unfair competition and is clearly defined in the competition law systems of various countries. Southeast Asian sellers should also pay attention to local laws and policies when selling products in the Indonesian market and be careful not to step on landmines.

policy

Cross-border e-commerce market

Southeast Asia