Indonesia’s Minister of Trade has enacted new regulations* that significantly impact both local and offshore businesses operating through Indonesia’s e-commerce systems. The regulations took effect on 26 September 2023, replacing and revoking the prior regulation.**

The purpose of the new regulations is to enhance transparency, build consumer trust, and create a more robust foundation for Indonesia’s digital economy. Under the regulations, in order to operate through Indonesia’s e-commerce systems, businesses must obtain trading business licenses relevant for their specific sectors, in accordance with the regulatory regimes governing those sectors. In addition, all
businesses operating an e-commerce platform in Indonesia must uphold ethical advertising practices, providing consumers with accurate and reliable information. Failure to comply may result in severe administrative measures, such as restricting the business’ access to websites/platforms or the revocation of a business licence.

The regulations mark a significant step toward balancing the rapid growth of e-commerce with the necessity for a structured and regulated marketplace. As businesses navigate this dynamic landscape, those who embrace these standards are not just following the rules – they are
shaping the future of responsible and prosperous commerce in Indonesia.

* Regulation of The Minister of Trade of The Republic of Indonesia (PERMENDAGRI) No. 31 of 2023 regarding Business Licensing, Advertising, Development, and Supervision of Business Actors in Trading Through Electronic Systems.

** Regulation of The Minister of Trade of The Republic of Indonesia (PERMENDAGRI) No. 50 of 2020 regarding Business Licensing, Advertising, Development, and Supervision of Business Actors in Trading Through Electronic Systems.