I. Who Is Affected?
The new rules apply to two main groups involved in e-commerce:
1. Foreign Merchants Selling to Indonesia
This includes any business based outside of Indonesia that sells products or services to Indonesian consumers via online platforms. Whether you're using your own website or a third-party platform, these rules likely apply to you if you're targeting the Indonesian market.
2. E-Commerce Platforms (PPMSE)
If your platform facilitates online transactions for Indonesian users—including marketplaces, retail platforms, social commerce tools, or daily deal sites—you’re responsible for monitoring merchant compliance, registering locally (if certain thresholds are met), and restricting certain types of activities on your platform.
II. Key Changes and What They Mean for Your Business
1. Ban on Transactions within Social Media Platforms
Social commerce platforms can no longer process or facilitate payments directly on their systems. This change forced TikTok Shop to shut down in Indonesia in 2023. Platforms like Facebook, Instagram, and similar networks are now restricted to promotion and must not complete the transaction in-app.
What you should do:
If your business relied on TikTok Shop or similar features, you must now direct traffic to an external website or marketplace for checkout and payments. Separate your social engagement from your e-commerce fulfillment.
2. Local Registration Requirement for Foreign Platforms
Foreign platforms must establish a representative office in Indonesia and obtain the proper business license if they meet any of these criteria:
- Process more than 1,000 transactions per year with Indonesian users.
- Deliver more than 1,000 packages per year to Indonesia.
- Account for 1% or more of Indonesia’s total internet traffic annually.
What you should do:
Evaluate your traffic and order data to determine if these thresholds are met. If so, prepare to open a representative office in Indonesia and apply for a Foreign Trade Company Representative License (SIUP3A) through the Online Single Submission (OSS) portal.
3. Platforms Must Not Manufacture Goods
Online marketplaces and social commerce platforms are prohibited from acting as manufacturers of the goods they offer. They can facilitate transactions but not produce and sell their own products directly to consumers.
What you should do:
If your platform sells in-house products, reclassify the platform or shift to a separate legal entity. Clarify that you're acting only as an intermediary.
4. $100 Minimum Price Threshold for Cross-Border Sales
A new minimum FOB price of USD $100 per unit applies to finished goods sold cross-border into Indonesia. This is designed to protect local SMEs from being undercut by cheap imports.
What you should do:
Audit your product listings and ensure that imported goods sold to Indonesia meet the minimum price. Consider focusing on premium product lines or partnering with local retailers.
5. New Documentation Requirements for Foreign Sellers
Foreign merchants selling through Indonesian platforms must now submit:
- Business name and country of origin
- Valid business license, legalized via Apostille or consular process
- Product compliance certificates or technical standard proof
- Bank account details used for transactions
What you should do:
Gather these documents ahead of time and confirm the legalization process in your jurisdiction. Share them with the Indonesian e-commerce platform(s) you use.
6. Mandatory Product Standardization and Halal Certification
Imported goods sold to Indonesia must now comply with Indonesian National Standards (SNI) or relevant home-country technical standards (if SNI does not apply). Products requiring halal certification under Indonesian law must obtain one.
What you should do:
Check if your product category falls under mandatory SNI or halal rules. If so, consult a local expert to begin the certification process, which may take time and coordination.
III. Enforcement Risks to Be Aware Of
Non-compliance with the new e-commerce rules may result in:
- Platform suspension or website blocking in Indonesia
- Rejection of shipments at customs
- Legal penalties or fines
Tip: Indonesian authorities are becoming more active in enforcing digital compliance, especially in the fast-growing e-commerce space. Don’t assume you’re under the radar if you serve Indonesian customers.
IV. Final Thoughts: Turning Regulation into Opportunity
Indonesia’s updated e-commerce landscape is about more than just compliance—it reflects a national strategy to empower local businesses while welcoming responsible foreign players. If your business adapts proactively:
- You’ll build consumer trust by following labeling, certification, and pricing rules.
- You’ll avoid operational disruption by meeting documentation and licensing requirements.
- You’ll gain long-term access to one of Southeast Asia’s largest and most dynamic online markets.