The founding father of Chinese e-commerce giant Alibaba, Jack Ma, has been appointed a special adviser to the Indonesian government on the event of Indonesian e-commerce.
After a gathering in Beijing on Tuesday, Indonesian Communications and Information Technology Minister Rudiantara said Ma had accepted a proposal to advise a 10-minister steering committee tasked with promoting the country’s e-commerce sector.
The first proposal was presented by Indonesian President Joko Widodo during a visit to Alibaba’s headquarters through the G20 summit in Hangzhou, China, last 12 months.
As quoted Technology in Asiaone among Ma’s first remarks was that Indonesia would want to concentrate on improving infrastructure (including ICT infrastructure and payment systems) and logistics networks, because connectivity is vital. This is very essential in a rustic as vast as Indonesia, which is made up of 1000’s of islands and is home to about 260 million people.
This is in step with Indonesia’s policy e-commerce development plan was established in August this 12 months.
According to Jack Ma, he has regained his position because the richest man in Asia Forbes this week with a net price of $37.4 billion, helped by a surge in Alibaba’s profits and stock price.
1. Yesterday, while accompanying the Coordinating Minister of the Economy, he met with Jack Ma, who was accompanied by Angel Zhao, Vice President of Alibaba Group. photo:twitter.com/PVikmc2Bc3
— Rudiantara (@rudiantara_id) August 23, 2017
Ma also plans to ask Indonesian officials to Alibaba’s headquarters to take part in training sessions to clarify issues related to the event of the e-commerce industry.
Indonesian authorities are currently struggling to search out the correct technique to streamline the country’s rapidly growing e-commerce sector and generate more tax revenue from it, while stopping this relatively latest sector from crowding out existing (offline) sectors.
Therefore, it will be significant for traditional retail firms to leverage the potential of e-commerce activities. This also involves improving Indonesia’s human resources and preparing younger generations of Indonesians to take part in online businesses, Indonesian Minister of Communications and Information Technology Rudiantara said, as quoted by Compass.
According to data from the Indonesian Ministry Communication and knowledge technologyIndonesia’s online shopping market – the biggest in Southeast Asia – is predicted to grow from $5.3 billion last 12 months to $130 billion in 2020.
However, such rapid growth also poses challenges for Indonesian authorities, who must create an appropriate legal and financial environment. Meanwhile, Indonesia’s 56 million small and medium-sized enterprises must be encouraged to enter the worldwide market (requiring an appropriate degree of competitiveness and improved human resource standards), in accordance with the study Investments in Indonesia.
