Jakarta, CNBC Indonesia – In an effort to eradicate the act of burning money or price wars that occur between marketplaces (e-commerce) and Micro, Small and Medium Enterprises (MSMEs), the Minister of Cooperatives and Small and Medium Enterprises (Menkop UKM) Teten Masduki said that his party is currently processing regulations regarding the Cost of Goods Sold. (HPP) at the market place.
These regulations will later be contained in the revised Minister of Trade Regulation Number 31 of 2023 concerning Business Licensing, Advertising, Guidance and Supervision of Business Actors in Trading Through Electronic Systems which was signed by the Minister of Trade Zulkifli Hasan.
“It will be revised, this process is still ongoing, we have proposed a regulation (HPP), so that there are no price wars in e-commerce, burning money in e-commerce to increase market share business valuations, however, it is detrimental to MSMEs,” said Teten when met at the PWI Central Office, Jakarta, Wednesday (7/2/2024).
Teten said the revision had been discussed in a limited coordination meeting at the Coordinating Ministry for Economic Affairs.
“It has been discussed at the Coordinating Minister for the Economy, it is already in process,” he said.
Teten also said that the implementation of HPP was planned for all products on the market. And he believes that the price limitation policy will be able to protect MSMEs, because the process of designing the regulations will involve associations.
“This has been done in China, it cannot be sold under HPP. It can be done in China, why can't it be done here,” he concluded.
For your information, the Government has issued Minister of Trade Regulation No.31/2023 as a revision of Minister of Trade Regulation 50 of 2020 in September 2023. This regulation is a mandate from President Joko Widodo (Jokowi) to the Minister of Trade (Mendag) Zulkifli Hasan and the Coordinating Minister for SMEs to increase protection for MSMEs, as well as domestic business actors.
However, not long after Minister of Trade Regulation Number 31 of 2023 was published, Teten again proposed that the Minister of Trade Regulation be revised, by adding HPP regulations for market places to it. This is because there are still many products sold in market places at low prices.
[Gambas:Video CNBC]
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