Jakarta Globe, ID/Farid Firdaus, March 23, 2013
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| The Ministry of Communication and Information will require all e-commerce websites in Indonesia to use Indonesian domain names by the end of the year. (JG Photo/ Afriadi Hikmal) |
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The
Indonesian government has announced it will implement new regulations on
e-commerce systems in the country to minimize fraud and build people’s trust in
online shopping.
Director of
e-business at the Ministry of Communication and Information Azhar Hasyim said
that the ministry was mulling over new rules on electronic system registration,
which will include e-commerce.
“One of the
registration requirements is that electronic system providers must use
Indonesian domain names,” Azhar said after a discussion on Friday, adding that
the new rules will be implemented sometime this year.
Azhar said
that the regulations will not curb the growth of the e-commerce industry in
Indonesia, and would instead protect the industry.
“There are
many frauds in the websites with dot-com domain names,” Azhar said. “We
received many complaints concerning this. Under dot-com domain names, we will
have difficulties finding the perpetrators because the websites are not
registered with the government. We will force [e-commerce businesses] to use
Indonesian domains this year.”
Based on
the data of the ministry, the value of e-commerce transactions in Indonesia in
2012 was around Rp 120 trillion ($12.3 billion), a significant increase from
the previous year’s total of Rp 63 trillion.
The
ministry also said that of all online shopping transactions in the country in
2012, 55 percent came from home computers, 43 percent came from mobile web
browsers and 2 percent were from mobile applications.
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