JAKARTA, 3 December 2021 –Yesterday, the ASEAN Agreement on Electronic Commerce entered into force following the receipt of the notification of Indonesia’s Instrument of Ratification in accordance with the Article 19(2) of the said document.

The E-Commerce Agreement, which was signed on 22 January 2019 in Ha Noi, Viet Nam, established common principles and rules to promote the growth of e-commerce in the region and to strengthen capacity to implement them.

It will serve as a pathfinder for modern rules on e-commerce transactions in the region and pave the way towards a regionally integrated digital economy. With its entry into force, the implementation of the E-Commerce Agreement is instrumental, particularly in the midst of economic recovery from the COVID-19 pandemic of ASEAN.

Since the outbreak of the pandemic, e-commerce has grown exponentially and became the major driving force in the digital transformation. ASEAN is on the path to become a US$1 trillion internet economy by 2030, propelled by a fast-growing base of digital consumers and merchants, acceleration in e-commerce, and food delivery.

The ASEAN’s internet economy is estimated to reach US$170 billion in gross merchandise value by the end of 2021, and more than US$360 billion by 2025, outpacing the earlier projection of US$300 billion according to the sixth edition of Google, Temasek, and Bain & Company’s “e-Conomy Southeast Asia (SEA) Report 2021.’’

The full text of the E-commerce Agreement can be downloaded at this page