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E-Commerce Regulations eased in Indonesia

Indonesia with rate of internet adoption as one of the fastest in the world is among the big economies in the Asia-Pacific region. E-commerce in the region is starting to boom with Revenue amounting to USD 8,237.6m in 2016.

Looking to the e-commerce boom, Indonesian government has made moves to open the country up to foreign e-commerce investment and expertise, BKPM (Investment Coordinating Board) is finalising guidelines for foreign e-commerce investment in the country.

It is expected regulations will allow 100 percent foreign ownership for e-commerce businesses with a minimum investment of Rp100 billion (about AU$10.3 million) or businesses that create 1,000 jobs. Also, logistics companies and on-demand transportation services will get the advantage of this and can reap more profitability in near future.


Indonesian President Joko Widodo is looking to make the country South-East Asia’s largest digital economy by 2020. The lifting of foreign ownership restrictions has been praised by those in the industry who welcome the injection of foreign capital and expertise.

Indonesia is one of South-East Asia’s fastest growing e-commerce markets and these regulations will provide a significant opportunity for foreign investment.

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