Feeds

Indonesia: e-commerce firms must have local domain

Show me some .ID, says Ministry

Next gen security for virtualised datacentres

Indonesia will effectively ban cross-border e-commerce and make it harder for foreign firms looking to invest in the country, by mandating that anyone wanting to sell goods online must register a local .ID domain.

The Communication and Information Ministry made the announcement as part of new rules for “electronic system operators” designed to clamp down on fraudulent web sites, according to Jakarta Globe.

The rules, likely to be implemented later this year, will force any firm wishing to do business in the country to register a local domain, meaning the local authorities can perform strict background checks and on-going monitoring, and even levy penalties or block a site completely if they find something wrong.

The plans are apparently a response to the growing number of cases of e-commerce fraud in Indonesia originating from sites registered with international domains such as .com, which over which the government has no control.

While efforts to improve trust and online security are no bad thing, the new rules will provide an extra barrier for foreign firms looking to sell into the country, as business .id registrants must be locally incorporated with a domestic postal address. There are rumours that the provisions will also mandate local data centres.

That requirement would be bothersome for foreign investors, who have noted that Indonesia is modernising rapidly, has the world’s fourth largest population and is adopting the Internet at speed.

Research from local firms Veritrans and DailySocial last August predicted that the size of the local e-commerce market would triple from £0.9bn in 2011 to $10bn by 2015.

Forrester, meanwhile, estimates that the country’s online consumers will grow from 47.3m in 2011 to 101.5m in 2017, according to Asia Pacific VP Andrew Stockwell.

He argued that the new registration rules would not necessarily provide too much of a hurdle to the likes of Amazon, which has local domains in countries like China and Japan, and may even encourage more firms like it into the country with the promise of a better regulated, safer environment.

Smaller firms, meanwhile, could get around the prescriptive rules by selling through local online marketplaces, he added.

“It’s really only keeping away the companies that they don’t want here anyway,” Stockwell told The Reg. ®

Next gen security for virtualised datacentres

More from The Register

next story
Déjà vu: Virgin Media jacks up broadband prices
Screw copper phone lines, we're UNIQUE, bleats telco
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
EE: STILL Blighty's best mobe network, says 'Frappucino' Moore
Fresh round of network stats fisticuffs possibly on the cards here
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
What's the nature of your emergency, Vodafone?
Oh, you've dialled the wrong number for ad fibs, rules ASA
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.