Predatory pricing could hinder MSME development: Minister Masduki

Jakarta (ANTARA) – Micro, small, and medium enterprises (MSMEs) are struggling to compete with foreign products due to predatory pricing adopted by e-commerce players, Minister of Cooperatives, and Small and Medium Enterprises (SMEs) Teten Masduki has said.

Therefore, the government will amend the Trade Minister’s Regulation Number 50 of 2020 concerning Provisions for Business Licensing, Advertising, Guidance, and Supervision of Business Actors in Trading through the Electronic System (PMSE), among others, to check predatory pricing.

“Predatory pricing can increase e-commerce valuation but also kill domestic products. There is big economic power to burn money but could (hurt) MSMEs as well,” Masduki said after a coordination meeting here on Tuesday.

He further said that he wants e-commerce players to become platform providers, and not sell their own products or those of affiliated companies.

At the coordination meeting, Masduki invited MSME owners, associations, and e-commerce players to redesign the business model of the digital economy.

President Joko Widodo (Jokowi) has assigned Masduki to coordinate the issue with the Ministry of Trade, Ministry of Communication and Informatics, and the Ministry of Finance.

“The President wants to protect three things, namely domestic industries, including domestic e-commerce, then he wants to protect MSMEs and consumers,” Masduki informed.

He said that national policies related to the digital economy are very broad, such as those regulating the marketplace. In this case, the government has confirmed it will accelerate the revision of the Trade Minister Regulation Number 50 of 2020.

Furthermore, the minister invited other stakeholders to discuss the revision of the regulation to accommodate its substance.

“(On the one hand) We want to protect MSMEs; on the other hand, we also want Indonesia to remain attractive for investment. We do not want to close the Indonesian market from foreign products, but elevate our MSME products to be in the same field as foreign products,” he added.

Attribution- https://en.antaranews.com/news/234189/predatory-pricing-could-hinder-msme-development-minister-masduki