The Indonesian Ministry of Trade has officially revised its e-commerce regulations to better govern the nation's rapidly evolving digital marketplace. Announced by Minister of Trade Budi Santoso, the updated framework replaces Regulation No. 31 of 2023. The new rules aim to strengthen the digital ecosystem, champion local products, and provide greater legal certainty for emerging business models.
Expanding Regulatory Scope
A significant update in the revised regulation is the inclusion of two new business models: ride-hailing and online travel agents (OTAs). This expansion is a direct response to the dynamic growth of the digital commerce landscape in Indonesia. The move provides comprehensive legal certainty for companies operating within these increasingly integrated sectors.
The government clarified that for ride-hailing services, the regulation specifically targets the commercial transactions of goods facilitated through the platforms. Minister Budi Santoso emphasized that the core transportation service itself remains outside the scope of this trade law. This distinction ensures the rules are precisely focused on the e-commerce activities within these applications.
Championing Local Enterprises
A central focus of the new regulation is to enhance the visibility and competitiveness of domestic products. Platforms are now mandated to prioritize goods from local businesses, particularly Micro, Small, and Medium Enterprises (MSMEs). This policy is designed to empower local entrepreneurs and strengthen the domestic market against foreign competition.
The revised rules introduce a mandatory business licensing requirement for all merchants selling on digital platforms. This measure aims to formalize the sector, creating a healthier and more accountable trading environment. It also provides greater legal certainty for entrepreneurs and strengthens consumer protection against illicit sellers.
Obtaining a business license offers MSMEs significant advantages beyond simple compliance. It unlocks access to a wide range of government support programs designed to foster growth. These initiatives include specialized training, access to financing, and facilitation for promotional activities.
Enhancing Platform Governance and Consumer Protection
To foster fairer partnerships, the regulation imposes stricter transparency requirements on e-commerce platforms. Operators must now clearly disclose all fees and detail their policies regarding product promotions. This ensures merchants have a complete understanding of the terms of their partnership with the platform.
Consumer protection has been significantly strengthened under the new framework. Platforms are now required to provide robust mechanisms for handling complaints and resolving disputes effectively. The regulation also addresses the use of artificial intelligence in marketing to safeguard consumers from unfair trade practices.
A Phased Implementation
Recognizing the need for adjustment, the government has established a transition period for businesses to comply with the new rules. This grace period specifically allows merchants time to secure the mandatory business permits without disrupting their operations. The phased approach is intended to ensure a smooth and gradual shift towards a more formal digital ecosystem.
The Ministry of Trade has committed to actively supporting businesses throughout this transition. Minister Budi Santoso affirmed that the regulation is just the first step, to be followed by continuous guidance and assistance. This support will include socialization programs, training workshops, and promotional events held both online and offline.
The revision of Indonesia's e-commerce regulation marks a pivotal step in modernizing the country's digital trade framework. By expanding its scope, championing local MSMEs, and strengthening governance, the government is building a more structured and resilient digital economy. Ultimately, these comprehensive changes aim to foster a fair, secure, and beneficial environment for all participants.