PPMSE Must Comply! Implementation of Electronic Data Reporting Regulations

The rapid growth of digital technology in Indonesia has become a key driver of economic progress. This digital transformation has had various effects across several sectors, such as Developing trade through electronic systems (PMSE).

The development of trade through electronic systems (PMSE) in Indonesia continues to grow alongside increasing digitalization. Suppose you want businesses involved in trade through electronic systems, to ensure transparency and accountability.

In that case, the government, through Badan Pusat Statistik (BPS) Regulation No. 4 of 2023 and Ministry of Trade (Permendag) Regulation No. 31 of 2023, has mandated that Electronic System Trade Providers (PPMSE) submit relevant data and comply with regulations.

Key Takeaways

• Mandatory Data Reporting for PPMSE: Under BPS Regulation No. 4 of 2023, PPMSE must submit trade-related data quarterly, including company information, transactions, and workforce details.
• Quarterly Reporting Periods: Data submissions must align with four quarterly periods: Q1 (Jan-Mar), Q2 (Apr-Jun), Q3 (Jul-Sep), and Q4 (Oct-Dec).
• Sanctions for Non-Compliance: Permendag No. 31 of 2023 outlines tiered penalties for non-compliance, from written warnings to blacklisting and business license revocation.
• Benefits of Compliance: Adhering to these regulations enhances transparency, minimizes legal risks, and supports data-driven policies for Indonesia’s electronic trade sector.
• Preventive Measures: PPMSE can ensure compliance by developing internal reporting systems, coordinating with BPS for accurate submissions, and actively monitoring regulatory adherence.

PPMSE Obligations Under BPS Regulation No. 4 of 2023

To support electronic trade data management, PPMSE must periodically provide trade data and/or information to BPS. The data to be submitted includes:

1. General company information
2. Workforce data
3. Income and expenditure
4. Product categories
5. Regional categories
6. Transactions
7. Payment methods
8. Number of sellers and buyers

Reporting Periods for PPMSE

The data must be submitted according to a quarterly recording period, as follows:

• Q1 (First Quarter): January 1 – March 31
• Q2 (Second Quarter): April 1 – June 30
• Q3 (Third Quarter): July 1 – September 30
• Q4 (Fourth Quarter): October 1 – December 31

Administrative Sanctions Under Permendag No. 31 of 2023

If PPMSE fails to meet the obligations as stipulated in Article 17 of Permendag, the government has established a tiered mechanism for administrative sanctions:

• Written Warnings: PPMSE may receive up to three written warnings with a grace period of 14 calendar days from the date of the issuance of the previous warning.
• Inclusion in the Monitoring Priority List: If the obligations remain unfulfilled within the given timeframe, PPMSE will be included in the monitoring priority list for 7 calendar days.
• Blacklisting and Temporary Service Suspension: If the obligations continue to be ignored, PPMSE will face sanctions, including:
  • Inclusion in the blacklist, and
  • Temporary suspension of PPMSE services by the relevant authority upon the request of the Director General of PKTN.
• Additional Sanctions: Based on Government Regulation No. 80 of 2019, additional sanctions may include revocation of business licenses.

Benefits and Implications of Compliance

Compliance with these regulations provides significant benefits for PPMSE:

• Enhancing Transparency: Comprehensive and accurate data helps the government better understand the electronic trade ecosystem.
• Minimizing Legal Risks: By adhering to the regulations, PPMSE can avoid administrative consequences and the risk of business license revocation.
• Supporting Data-Driven Policies: The data collected by BPS can be used to formulate policies that promote the growth of Indonesia’s electronic trade sector.

Preventive Steps for PPMSE

To ensure compliance, PPMSE can take the following measures:

• Develop Internal Reporting Systems: Systematically manage data to ensure timely submission to BPS as per the quarterly schedule.
• Coordinate with BPS: Ensure the submitted data adheres to the required format and standards set by BPS.
• Monitor Compliance: Actively track regulatory compliance status to avoid administrative sanctions.

Conclusion

The obligation for data submission by PPMSE, as outlined in BPS Regulation No. 4 of 2023 and Permendag No. 31 of 2023, aims to foster transparency within Indonesia’s electronic trade ecosystem.

By understanding the associated obligations and sanctions, PPMSE can better manage their operations, minimize legal risks, and contribute to the accurate management of national data.

If you’re feeling unsure about these regulations or need further guidance, don’t hesitate to reach out. Simply fill in the form below, and our team will be happy to assist you.