#Asia Take note: Indonesia wants e-commerce startups to get accredited

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The accreditation process will be conducted by Indonesia e-Commerce Association (idEA)

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Indonesia’s Minister of Communications and Informatics Rudiantara announced during the recent Indonesia E-Commerce Summit and Expo (IESE) event in Serpong, Tangerang, that the government is going to appoint Indonesia e-Commerce Association (idEA) to accredit e-commerce companies operating in the country.

The plan is part of the long-awaited e-commerce roadmap, touching the specific aspect of consumer protection.

The accreditation process will be conducted by idEA, in which the e-commerce industry association will be reviewing companies based on a recommendation and membership system. Companies which had passed the accreditation will be given a ‘stamp of approval’ by the association.

“As for how the process is like, we will leave it to related association. Let them self-regulate,” said Rudiantara as reported by various local media.

This mechanism is considered more business-friendly compared to having to register directly to a government institution; indicating that the Minister is aware how lengthy, bureaucratic process might be detrimental for small businesses.

He also stressed that there will be no sanction against e-commerce companies which do not get themselves accredited. The accreditation itself is a way to build trust among customers, so that they “would know which e-commerce company is reliable, truthful, with good service quality.”

Also Read: Indonesia’s Financial Service Authority to set regulation for angel investors

At the same occasion, idEA Chairman Daniel Tumiwa confirmed that the preparation for the accreditation process is about “80 per cent ready.”

He stressed customer service and security as the two main points that will be considered in giving accreditation.

Apart from that, e-commerce companies also need to get recommendations from idEA members, which consists of major Indonesian e-commerce platforms such as Tokopedia, Bukalapak, Kaskus, Blibli, and corporate giants such as Kompas Gramedia.

As for newly founded companies, Tumiwa encouraged them to become a member of idEA with an IDR200,000 (US$15) monthly membership fee.

According to a report by Tempo, the accreditation will begin in June 2016, after idEA had finished electing new organising committee.

Image Credit: Paul Dufour on Unsplash

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