JakartaPost-Aug 29, 2023
ASEAN countries are seeking to promote the digital economy framework agreement (DEFA), which will allow the region to greatly increase its digital economy potential, but Indonesia’s current protectionist policies may stand in the way of reaching that goal. During the five-day meeting, which ended on Aug. 22 in Semarang, Central Java, ASEAN member states agreed that the DEFA will be made legally binding, emphasizing that each country must change their domestic policies according to the agreement. One aspect of the DEFA would regulate e-commerce and cross-border goods movements, as well as digital trade, cybersecurity, digital ID and digital payments, among others. “[The private sector has] requested that ministers ask negotiators to look deeply into the whole value chain of the e-commerce digital economy,” Deputy ASEAN secretary-general Satvinder Singh told reporters at the 55th ASEAN Economic Ministers Meeting in Semarang. “Now that definitely includes the taxes. It includes mechanisms of how you handle low value goods, across borders,” Singh said. ASEAN’s digital economy is projected to triple to almost US$1 trillion by the end of 2030 through the natural adoption of digital technologies, from approximately $300 billion, according to a bottom-up model developed by Boston Consulting Group. Presumably, this will not pose a problem for any of the ASEAN countries, but it could conflict with Indonesia’s plan to limit the number of foreign products available on online trading platforms to protect the local market and small businesses from cheap imported goods. Read more at:
