Jakarta (ANTARA) - President Joko Widodo (Jokowi) signed Government Law No. 80 in 2019 on Trade through Electronic System on November 20.
The rationale behind this Government Law, as cited from the cabinet secretariat official website, setkab.go.id, in Jakarta on Wednesday, is to materialize provisions of Article 66 of Law Number 7 of 2014 on Trade.
"Trading through the Electronic System, hereinafter abbreviated as PMSE, is trade for which transactions are conducted through a series of electronic devices and procedures," according to article 1, paragraph 2 of the Law.
The law stipulates that in conducting PMSE, the parties must focus on the principles of good faith, prudence, transparency, trustworthiness, accountability, balance, fairness, and fitness.
In accordance with the law, business actors, consumers, individuals, and state implementing agencies can conduct such trade practices as per the statutory provisions.
It also said that foreign business actors, actively bidding and/or conducting PMSEs to consumers domiciled within the jurisdiction of the Republic of Indonesia, who meet certain criteria, should make a physical appearance in Indonesia and conduct permanent business activities in the legal territory of the country.
The law states that taxation mechanisms towards PMSE business activities are applied in accordance with the existing regulations.
The law also necessitates domestic and/or overseas PMSE to store PMSE data and information concerning financial transactions for a minimum period of 10 years since the date the data and information was acquired.
"This Government Regulation shall come into force on the date of promulgation," according to Article 82 of Government Regulation Number 80 of 2019 that was promulgated by Minister of Justice and Human Rights Yasonna A. Laoly on November 25, 2019.
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