Indonesia to regulate online shopping

New laws will be introduced this year in the country to minimize fraud and build consumer trust in e-commerce, including the use of Indonesian domain names.

Indonesia plans to roll out new e-commerce regulations in order to minimize fraud and build people's trust in online shopping.

Azhar Hasyim, director of e-business at the Ministry of Communication and Information, said his ministry was mulling over new rules on electronic system registration, which will include e-commerce , according to a Jakarta Globe report Saturday.

Indonesia to roll out regulations over e-commerce this year.

"One of the registration requirements is that electronic system providers must use Indonesian domain names," Azhar said in the report, adding the new rules will be implemented sometime this year.

He noted there were many incidents of fraud in Web sites with dot-com domain names. which made it difficult to find the perpetrators because they were not registered with the government. "We will force [e-commerce businesses] to use Indonesian domains this year," said the minister.

The news comes after a month Malaysia announced it would regulate online busineses from July 2013 to raise the confidence of consumers, amid a "worrying" increase in electronic transaction fraud cases .