INDONESIA Law and Practice Contributed by: Agus Ahadi Deradjat (Agung), Mahiswara Timur, Nina Cornelia Santoso and Natasya Nurul Amalia, ABNR Counsellors at Law
E-Commerce Government Regulation No 80 of 2019 on E-Commerce (GR 80) serves as the umbrella law for e-commerce transactions. GR 80 governs the main aspects of e-commerce, including licens - ing requirements, obligations for e-commerce providers, content liability, consumer protection and data protection. GR 80 generally defines “e-commerce” as a form of commerce in which transactions are conducted using electronic equipment and pro - cedures, whereas an “e-commerce undertak - ing” is “an individual or undertaking, whether incorporated or unincorporated and whether domestic or non-domestic, that engages in commercial operations in the e-commerce field”. Considering the broad definition of e-commerce, many electronic platforms would qualify as an e-commerce undertaking and should comply with e-commerce regulations’ provisions. E-commerce undertakings are further classified into three categories: • e-commerce providers – providers of elec - tronic communication facilities used for trad - ing transactions; • merchants – business undertakings engaged in e-commerce, either by using e-commerce facilities created and managed directly by themselves or through a facility owned by an e-commerce provider (or through other electronic systems that provide an e-facilities platform); and • intermediary service providers (ISPs) – domestic or foreign business actors (other than telecommunications operators) that pro - vide an electronic communications platform, which only functions as an intermediary in electronic communications between a sender and recipient.
E-commerce undertakings are required to obtain the relevant licences via the online single sub - mission system. The Ministry of Trade (MOT) also issued Reg - ulation No 31 of 2023 on Licensing, Advertis - ing, Development and Supervision of Business Undertakings in the E-Commerce Sector (MR 31) as an amendment to the previous imple - menting regulation of GR 80. Notable provisions governing the obligations of e-commerce undertakings under GR 80 and MR 31 include the following. • Content moderation ‒ e-commerce providers shall be held liable for the legal consequenc - es/impact of illegal electronic information/ content on their platform. However, GR 80 provides a safe harbour if the e-commerce provider takes immediate action to delete a link to illegal electronic content once aware of its nature. • Product compliance for foreign merchants – foreign merchants are required to verify their identity and provide specified documentation and information to an e-commerce provider, including: (i) identity details; (ii) a copy of a business licence that has been apostilled by an authorised in - stitution or legalised by an Indonesian embassy overseas; (iii) evidence of compliance with the relevant compulsory standards and technical re - quirements for the goods/services being sold; (iv) bank account numbers used for transac - tion payments; and (v) a certificate or report confirming the veracity of the merchant’s identity par - ticulars and business licence from an
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