Indonesia to set up agency to back e-commerce transactions

Jakarta, Feb 7 (Asia Pulse) - The Indonesian government has announced that a law would be drafted for the establishment of an institution that would provide guarantee for e-commerce trade in the country.

The government, in cooperation with the business sector, is studying plans to set up an agency called National Certification Authority to monitor and keep record of all trade transactions made through e-commerce system in the country. The draft law is being discussed by the industry and trade ministry and related institutions, Teddy Setiadi, the domestic trade director general said.

Teddy said the agency would be formed in cooperation between PT Indosat and PT Telkom, both state-owned telecommunications companies, PT Pos Indoensia, the Indonesian chamber of commerce and the industry and trade ministry. He said the government is aware that e-commerce would need a certification authority to guarantee all e-commerce transactions.