Updated E-Commerce Policy Prioritizes Local Products and Fair Competition
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- Indonesia has introduced a revised PMSE regulation to boost MSMEs, enhance consumer protection, and create a fairer digital trade ecosystem.
- The new rules focus on local product visibility, licensing compliance, platform transparency, and expanded oversight of ride-hailing and online travel agent services.
- The government aims to formalize online businesses gradually while supporting sellers through training, incentives, and a transition period for meeting licensing requirements.
Jakarta — Trade Minister Budi Santoso has announced a revision to Indonesia’s regulation on electronic commerce (PMSE), aimed at strengthening micro, small, and medium enterprises (MSMEs) while enhancing consumer protection.
Budi said the updated regulation introduces five key focus areas: improving the visibility of local products, facilitating business licensing, ensuring transparency in platform partnerships, strengthening consumer protection, and reinforcing digital governance.
“The refinement of PMSE regulations through this new ministerial regulation is intended to foster a fair, healthy, and beneficial digital trade ecosystem, while keeping pace with rapid technological developments,” Budi said in a written statement received in Jakarta on Friday.
He further explained that the regulation mandates prioritizing the visibility of domestically produced MSME goods on digital platforms, requiring sellers to obtain proper business licenses, ensuring transparency in platform fees and promotional policies, and providing promotional incentives for MSMEs.
The regulation also obliges platforms to establish complaint and dispute resolution mechanisms, encourages the use of artificial intelligence (AI) in product promotion and marketing, and strengthens safeguards against unfair trade practices.
In addition, the revised regulation introduces two new business models under electronic commerce operators (PPMSE). The first is ride-hailing, defined as an electronic system in the land transportation sector that may include features for trading goods and services within the same ecosystem.
The regulation of ride-hailing platforms specifically targets the buying and selling of goods facilitated through commercial features within these applications, rather than their transportation services.
“The focus is on regulating the trade of goods conducted via these platforms, not the transportation services themselves,” Budi emphasized.
The second business model is Online Travel Agents (OTA), defined as electronic systems that offer travel-related services, including ticket bookings, accommodations, attractions, and travel packages, either directly to consumers or by facilitating transactions between consumers and service providers.
Regarding the requirement for all online sellers to obtain business licenses, Budi stressed that the measure is necessary to create a more orderly and reliable digital trade ecosystem, while also ensuring legal certainty for businesses and protection for consumers.
To ease the transition, the government will provide a grace period for business actors to comply with licensing requirements. This transition period is expected to allow gradual formalization without placing undue burden on sellers.
“This regulation marks an initial step. We will continue to support business actors through coordinated programs, including outreach, training, promotion, and both online and offline initiatives. A healthy digital ecosystem can only be built through collective efforts,” he said.
The revised ministerial regulation has been officially signed by Budi and will replace Trade Minister Regulation No. 31/2023 on business licensing, advertising, guidance, and supervision in electronic commerce.
Indonesianpost.com | Antara
