THE DETERMINANT OF CONSIGNMENT GOODS IN CROSS-BORDER E-COMMERCE

Abstract

E-commerce has started to dominate imported goods. This situation makes it problematic for domestic industries to compete with foreign products. The Ministry of Finance of the Republic of Indonesia adjusted the de minimis threshold to USD3 from USD75 to anticipate it. The policy is expected to limit imported products and support the sustainability of small and medium enterprises (SMEs). Research related to imports through e-commerce in Indonesia still needs to be completed. This study aims to analyse several variables predicted to affect cross-border e-commerce. This research employs the ordinary least square (OLS) and error correction model (ECM) approach to examine the effect of exchange rates, inflation, income, and discounts on imports from e-commerce. A one-way ANOVA test was used to find the difference in the average imports of the three de minimis groups (USD100, USD75, and USD3). It utilized transaction data obtained from the Lazada e-commerce platform. Lazada was chosen because it is one of the biggest marketplaces in Indonesia. The test result found that discounts significantly affect the short and long-term import value. In addition, lowering de minimis tends to decrease the average import of consignment goods. The result implies that the government should improve regulations to support SMEs as one of the keys to the success of the National Economic Recovery (PEN) from the COVID-19 pandemic.