After five long years since the issuance of Law No.7 of 2014 on Trade (the "Trade Law"), the Government of Indonesia finally issued an implementing regulation on e-commerce on 20 November 2019, through Government Regulation No. 80 of 2019 on Trade through the Electronic System ("GR 80/2019"). This regulation is part of the Government's efforts to encourage internet-based transactions and trading as part of making Indonesia 4.0.

GR 80/2019 has 19 chapters and an extensive scope. Its aim is to provide legal certainty for the continuous development of electronic-based trading activities (Perdagangan Melalui Sistem Elektronik - "E-Commerce") in Indonesia, and covers, among other things, E-Comerce parties, the general requirements and obligations for E-Commerce, the protection of consumers and personal data and administrative sanctions for violations of GR 80/2019.

This newly issued regulation came into effect on 25 November 2019, and existing E-Commerce business practitioners engaged in E-Commerce business activities before GR 80/2019 became effective are requires to adjust and comply with this regulation within two years of 25 November 2019 (ie by 25 November 2021).

Written by Kurniawan Tanzil, Maria Sagrado, and Brinanda Lidwina Kaliska.

Read about the key provisions of the new regulation by clicking this link.