Obligation Of Overseas E-Commerce To Have Representative Office In Indonesia

The Ministry of Trade (MOT) issued Regulation of MOT Number 50 Year 2020 regarding Provisions of Business License, Advertising, Mentoring, and Supervision of Business Players in Trade through Electronic System (PMSE). One of the provisions stipulated in such regulation is the obligation to have a representative office for overseas PMSE providers (PPMSE) in order to guarantee protection for consumers. Such obligation applies to overseas PPMSE that has fulfilled the criteria, namely, among others, carrying out more than 1,000 transactions with consumers per year or carrying out delivery of more than 1,000 packages per year. The representative office can only represent one overseas PPMSE and must be located in the territory of Indonesia. PPMSE which does not have the representative office will be subject to administrative sanctions in the form of written warnings, blacklist entry, temporary blocking, and/or revocation of business permit. In addition to the obligation to have the representative office in Indonesia, this regulation also states that all parties involved in PMSE such as PPMSE, merchants, and Intermediary Services, must have a permit.






Source: https://legalcentric.com/content/view/150989

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