Data from the Ministry of Cooperatives and SMEs shows that up to 90% of goods on Indonesian e-commerce platforms (such as Shopee, Tokopedia, TikTok Shop, etc.) are imported products. The proliferation of cheap imported goods has severely impacted local industries. Recent monitoring revealed that a large number of imported goods are sold at ultra-low prices on e-commerce platforms, such as imported used clothing bundles at IDR 600,000 per set of 20 pieces, headscarves at IDR 6,997 per piece, and shirts at IDR 20,000 per piece. The Deputy Director of SMEs at the Ministry of Cooperatives and SMEs stated that consumers only focus on price and quality, not caring about the origin, further fueling the influx of imported goods, leading to distorted domestic market prices, putting local MSMEs at a complete price disadvantage.
The Chairman of the Indonesian Digital Empowerment Association (Idiec) believes that the dominance of imported goods on e-commerce platforms is not rooted in the platforms themselves, but in weak domestic production capacity. Indonesia has not yet become a manufacturing powerhouse; many consumer goods cannot be produced domestically and must rely on imports. This phenomenon is not limited to e-commerce but is also seen in traditional markets. He opposes simply restricting imported goods on e-commerce, arguing that this would reduce product variety and platform appeal. The real solution is to strengthen the domestic industrial ecosystem and create competitive local flagship products.
Digital economy experts point out that consumers' excessive pursuit of low prices is a major reason for the prevalence of imported goods, and there are policy gaps in regulation: Indonesia currently has no mandatory requirement for e-commerce platforms to label the origin of goods. Experts therefore recommend implementing a country-of-origin labeling system to clearly distinguish categories such as pure imports and locally manufactured domestic brands, enabling the government to accurately collect statistics and formulate support policies, such as requiring platforms to allocate at least 50% of shelf space to local products.
There is consensus that solving the issue of imported goods dominating e-commerce cannot rely solely on restrictions. It requires coordinated efforts from the Ministry of Industry, the Ministry of Cooperatives and SMEs, and others to enhance the competitiveness of local products, allowing Indonesian products to "become masters in their own country."
Data from the Ministry of Cooperatives and SMEs shows that up to 90% of goods on Indonesian e-commerce platforms (such as Shopee, Tokopedia, TikTok Shop, etc.) are imported products. The proliferation of cheap imported goods has severely impacted local industries. Recent monitoring revealed that a large number of imported goods are sold at ultra-low prices on e-commerce platforms, such as imported used clothing bundles at IDR 600,000 per set of 20 pieces, headscarves at IDR 6,997 per piece, and shirts at IDR 20,000 per piece. The Deputy Director of SMEs at the Ministry of Cooperatives and SMEs stated that consumers only focus on price and quality, not caring about the origin, further fueling the influx of imported goods, leading to distorted domestic market prices, putting local MSMEs at a complete price disadvantage.
The Chairman of the Indonesian Digital Empowerment Association (Idiec) believes that the dominance of imported goods on e-commerce platforms is not rooted in the platforms themselves, but in weak domestic production capacity. Indonesia has not yet become a manufacturing powerhouse; many consumer goods cannot be produced domestically and must rely on imports. This phenomenon is not limited to e-commerce but is also seen in traditional markets. He opposes simply restricting imported goods on e-commerce, arguing that this would reduce product variety and platform appeal. The real solution is to strengthen the domestic industrial ecosystem and create competitive local flagship products.
Digital economy experts point out that consumers' excessive pursuit of low prices is a major reason for the prevalence of imported goods, and there are policy gaps in regulation: Indonesia currently has no mandatory requirement for e-commerce platforms to label the origin of goods. Experts therefore recommend implementing a country-of-origin labeling system to clearly distinguish categories such as pure imports and locally manufactured domestic brands, enabling the government to accurately collect statistics and formulate support policies, such as requiring platforms to allocate at least 50% of shelf space to local products.
There is consensus that solving the issue of imported goods dominating e-commerce cannot rely solely on restrictions. It requires coordinated efforts from the Ministry of Industry, the Ministry of Cooperatives and SMEs, and others to enhance the competitiveness of local products, allowing Indonesian products to "become masters in their own country."