Question from Kenny, Can Producers Sell Directly to Final Consumers in Indonesia, Including Through Electronic Systems?
Answer from AI:
In general, producers in Indonesia are not prohibited from selling directly to final consumers, including through electronic systems. However, certain regulations and restrictions may apply depending on the type of product or service being sold.
Regulations on Direct Selling
The Ministry of Trade Regulation No. 57/M-DAG/PER/9/2014 on Direct Selling via Multi-Level Marketing (MLM) provides a framework for direct selling in Indonesia. This regulation allows producers to sell directly to consumers, but with certain conditions and restrictions to prevent fraudulent practices. For example, MLM companies must obtain a Direct Selling Business License and are prohibited from requiring new members to make a certain amount of purchases.
Regulations on E-Commerce
For electronic systems or e-commerce, the Ministry of Trade Regulation No. 50/M-DAG/PER/7/2017 on E-Commerce provides guidelines. This regulation does not prohibit producers from selling directly to consumers online. However, it does require e-commerce businesses to register and obtain an Electronic System Operator License.
Enforcement and Violations
Enforcement of these regulations is carried out by the Ministry of Trade and the Indonesian National Police. Violations can result in administrative sanctions, fines, and even criminal charges. For example, in 2019, the Ministry of Trade revoked the Direct Selling Business License of PT Melia Sehat Sejahtera for violating the MLM regulation.
Please note: This information is a general overview and may not apply to all situations. Laws and regulations can change, and they can be interpreted differently depending on the circumstances. Therefore, it’s important to consult with a legal professional in Indonesia for personalized advice.
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Disclaimer: The information provided in this response is intended for general informational purposes only and should not be considered as legal advice. While we strive to provide accurate information, we make no guarantees regarding the accuracy or legal validity of the information presented. Laws and regulations vary by jurisdiction and can change over time, and the application of laws can vary widely based on the specific facts and circumstances involved. Therefore, you should consult with a qualified legal professional before making any decisions related to legal matters. Do not rely solely on the information provided in this response for any legal decisions. We disclaim any and all liability with respect to actions taken or not taken based on the contents of this response.
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