Indonesia’s Strategies for Joining the ASEAN Digital Economy Framework Agreement
Ocak 29, 2024
Hasran Hasran, Karima Taushia

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Abstract

This policy brief presents the possible contents of DEFA by mapping relevant elements of the digital economy from existing agreements. The mapping indicates areas with extensive coverage by existing regional arrangements (cross-border paperless trade, cyber security, e-commerce, digital payment, digital ID, and personal data protection) and areas and issues that are less regulated by regional arrangements (digital inclusivity, emerging technology, and climate).

Indonesia should map out areas of strength and weakness in domestic regulation and system interoperability on the possible content of DEFA. For the areas of strength, where domestic laws and system interoperability exist, or joint commitments and initiatives for harmonization within the region are underway, the directorate should push for strong cooperation and binding commitments in the agreement. Meanwhile, a more moderate approach should be proposed for less developed areas regarding regulatory frameworks and interoperability.

This policy brief identified strengths in data protection, digital payment, cross-border e-commerce, digital ID, and cross-border paperless trade. For each area, the following actions should be considered during negotiations:
First, concerning cross-border e-commerce, Indonesia should suggest the avoidance of unnecessary barriers related to electronic commerce within each ASEAN Member States (AMS) domestic regulation.

Second, regarding cross-border data flow, Indonesia should propose removing restrictions on data transfers across borders, especially when the purpose is to facilitate business activities.

Third, regarding the digital ID component, Indonesia should advocate for establishing common principles for introducing digital ID systems or mutual recognition of digital IDs that all AMS can utilize.

Fourth, concerning paperless trade, Indonesia should recommend fully implementing e-form D to enhance trade efficiency within ASEAN.

Lastly, Indonesia should promote the interoperability and interconnection of digital payment systems in the ASEAN region.

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