Indonesia Sets New Trade Rules for Electronic Systems

By Jessica Turner 23/07/2026 3 min read 3 views

Indonesia’s trade through electronic systems rules are changing again. On June 4, 2026, the Ministry of Trade issued Regulation No. 19 of 2026 on the Implementation of Trade Business Through Electronic Systems. The new rules replace the previous regulations from 2023 and take effect on June 8, 2026. The document outlines the key provisions of the regulation, which modifies the existing framework for business actors operating through digital platforms.

This shift expands the list of business models allowed under the system. It adds ride-hailing and online travel agents to the list of permitted models. Ride-hailing is defined as a land transportation business model that may include features for trading goods and services. Online travel agents facilitate the sale or ordering of travel services, including tickets and accommodations. These additions are part of the broader scope of Perdagangan Melalui Sistem Elektronik, or PMSE, as outlined in the document.

Platforms must enforce stricter compliance requirements. Sellers are required to hold proper business licensing in the trade sector. Domestic platforms must reject registration requests from sellers that do not meet these licensing standards. A temporary registration option is available for sellers who have not yet obtained their licenses, provided they secure them within six months. Foreign sellers face additional obligations, including submitting identity information, origin documents, and bank account details. They must also provide product descriptions in Indonesian.

Transparency and consumer protections receive significant attention. The rules place a heavy focus on how platforms handle fees and information. Platforms operating marketplaces and classified ads must disclose all fees in a clear, written agreement. Sellers can object to unilateral changes in fees or terms. If a platform does not respond to an objection within 14 business days, the objection is considered accepted. This mechanism allows sellers to challenge administrative decisions without immediate escalation.

Platforms must also improve how they display product information. Sellers must show the origin of goods and evidence of compliance with standards, such as halal certificates or safety permits. Platforms are required to facilitate the display of this data. The regulation also introduces specific labels for sellers. Labels like “official store” or “flagship store” must be supported by documents and based on clear criteria. Sellers remain responsible for the accuracy of this information.

A significant portion of the regulation focuses on domestic products. Platforms must prioritize the trade of local goods in their search and recommendation systems. Domestic products, especially those from micro and small enterprises, must appear at the top of search results. If they do not appear in the top row, platforms must provide a dedicated landing page for domestic products. This requirement is designed to improve the visibility of local sellers.

Foreign platforms must maintain a physical presence in Indonesia under certain conditions. If a foreign platform serves at least 1,000 consumers or delivers 1,000 packages within a year, it must appoint a representative. This representative must operate as a KP3A PMSE, a representative office for foreign trading companies. The representative can only act on behalf of one foreign platform and is limited to consumer protection and dispute resolution. Cross-border sellers must also apply a minimum price of FOB USD 100 per unit for foreign goods sold directly into the country.

Indonesia is addressing the use of artificial intelligence in digital commerce. The regulation requires platforms to label goods and services generated by AI. Business actors must ensure that AI-generated information is accurate and accountable. They must also provide a mechanism for consumers to complain about AI recommendations or services. These rules aim to balance innovation with fair competition and consumer protection.

Platforms have 18 months to comply with the new licensing requirements for sellers. Existing licenses remain valid if they are registered in the OSS system and have not expired. The Ministry of Trade has the authority to issue administrative sanctions for violations. These include warnings, blacklisting, or the blocking of services. The regulation signals a shift toward stricter oversight of digital marketplaces, requiring platforms to integrate compliance into their operational design rather than treating it as a separate administrative task.