Unlike the world of bricks and mortar consumer transactions, the internet readily facilitates cross-border transactions. In Australia, for instance, about 45% of consumer transactions involve purchases from overseas sellers. It is likely that a large proportion of online consumer transactions in any one ASEAN nation will be (or will become) transactions with the sellers outside that nation. Consequently, issues regarding cross-border transactions aresignificant. Consumers and sellers are likely to obtain substantial benefit if cross-border transactions within the ASEAN region are relatively seamless. That is, where the laws and regulations applying to transactions within the region are harmonious, and where online disputes can be settled with relative ease and at low cost.
Previous studies have highlighted the necessity for enhanced harmonisation of e-commerce laws and regulations within ASEAN. According to UNCTAD:
The process of harmonization started more than 10 years ago in support of ASEAN regional economic integration objectives through various initiatives aiming at promoting economic growth, with information and communication technologies (ICT) as a key enabler for the ASEAN’s social and economic integration: the e-ASEAN initiative (1999), the e-ASEAN Framework (2000), the ASEAN Economic Community (AEC) Blueprint (2007). The latest initiative is the ASEAN ICT Masterplan 2015.8
1.2 Case study countries
The interviews were undertaken in Kuala Lumpur, Singapore and Jakarta. These three locations were chosen as they are in relatively close geographical proximity; budget and time constraints limited available options for the study. In addition, the three countries (Malaysia, Singapore and Indonesia) apply different systems for the adoption and application of their laws. For instance, Malaysia and Singapore are common law-based countries, while Indonesia is a civil law-based country.
Indonesia adopts a process by which omnibus laws are developed, which is also the case with the Lao People’s Democratic Republic and Vietnam. Other member nations tend to enact more specific laws. The three countries being studied therefore provide a good representation of the legislative approaches adopted throughout the region. The three countries also vary significantly in population and geographical size, with Singapore being a relatively small geographical country and Indonesia being a large country both in geography and population.
1.3 Existing laws, systems and practices
Most ASEAN countries, including the three case study countries, have e-commerce and consumer protection laws in place, illustrated by the following table from the UNCTAD Report:9
Table 1. Status of e-commerce law harmonization in ASEAN as of March 2013