Government Requests E-commerce Platforms to Label Imported Products

Initiative to Support Local Businesses

The Indonesian Ministry of Cooperatives and Small and Medium Enterprises (SMEs) has taken a significant step to support local businesses by requesting major e-commerce platforms to implement clearer labeling for imported products. Deputy Temmy Satya Permana highlighted that consumers often prioritize price over product origin, which can disadvantage local products.

Key Request to E-commerce Platforms

The Ministry has specifically asked platforms like Shopee to modify their product catalogs to clearly distinguish between local and imported goods. This move aims to empower consumers with more transparent information about the products they purchase. Temmy stated that the current situation often leads consumers to focus on price rather than product origin, potentially harming local businesses.

Rationale Behind the Request

The request is part of a broader initiative to promote and protect local Indonesian businesses in the face of growing e-commerce activity. By making it easier for consumers to identify whether a product is locally made or imported, the government hopes to boost support for domestic industries. This measure is seen as a proactive step in ensuring fair competition between local and imported goods on digital platforms.

Implications for E-commerce Platforms

E-commerce platforms are expected to comply with the government's request by implementing the necessary changes to their product display and catalog systems. This could involve introducing new filters or labels that allow shoppers to easily differentiate between local and imported products. The move is likely to have significant implications for how these platforms operate and present their offerings to Indonesian consumers.