- Indonesia imposes strict measures on e-commerce platforms to protect local businesses
- Import duties of up to 200% planned for various goods
- Other Southeast Asian countries are considering similar actions against cheap imports
David vs. Goliath in the Digital Marketplace
Indonesia has rolled out aggressive measures to curb the influx of cheap imports on popular e-commerce platforms like Shopee, Lazada, and TikTok Shop.
The government plans to impose import duties of up to 200% on a wide range of goods, including textiles, electronics, and cosmetics.
This move aims to shield local micro, small, and medium enterprises, which constitute about 60% of the country’s GDP and employ around 120 million people.
Southeast Asia’s E-commerce Battleground
As Southeast Asia’s largest e-commerce market, Indonesia is leading the charge against the dominance of Chinese imports.
The country has already implemented the strictest cross-border e-commerce regulations in the region, including lowering the de minimis threshold to just $3.
Other Southeast Asian nations are following suit, implementing their own measures to protect local industries from the onslaught of cheap online imports.
Balancing Act
While the new regulations may provide relief for local businesses like Devita Ariyanti’s hijab store in Yogyakarta, experts warn of potential drawbacks.
Higher import duties could lead to trade tensions and negatively impact local businesses that rely on imported raw materials.
The government faces the challenge of striking a balance between protecting domestic industries and maintaining healthy international trade relations.
