Indonesia Strengthens E-commerce Regulation with Sanctions and Bans

 

The Indonesian Ministry of Trade (Kemendag) is actively monitoring e-commerce platforms to ensure compliance with existing regulations. This oversight, ongoing until March 2026, targets 104 electronic system trading (PMSE) business actors, encompassing marketplaces, online retailers, and classified ad and daily deals platforms.

Minister of Trade Budi Santoso emphasized that this supervision aims to verify that businesses meet their obligations under digital trade regulations. These include crucial aspects such as business legality, complete product information, adherence to electronic trading rules, and robust consumer protection measures.

“We have conducted online supervision of 104 PMSE business actors, comprising 6 marketplaces, 92 online retailers, and 6 classified ads, daily deals, and auction platforms,” stated Budi Santoso, often referred to as Busan, during a working meeting with Commission VI of the House of Representatives on Tuesday (May 26th).

This comprehensive oversight is a strategic move to establish a level playing field between local and international businesses, while simultaneously providing legal certainty for both domestic consumers and producers.

As of March 2026, the Ministry of Trade has issued administrative sanctions in the form of written warnings to dozens of PMSE business actors who failed to meet their stipulated obligations. Specifically, 37 businesses received their first written warning after being found non-compliant with government-mandated requirements.

Beyond direct business oversight, Kemendag also conducts cyber patrols on advertising content and trading activities across 21 e-commerce platforms. The ministry has previously issued 3,310 sanction notices to online stores on various platforms over four reporting periods, from the first quarter of 2024 to the third quarter of 2025.

These enforcement actions have resulted in the blacklisting and blocking of at least 107 online stores, with some facing temporary suspensions and others permanent bans.

Furthermore, up to March 2026, the government has successfully requested the removal (takedown) of 2,639 advertisements that violated prevailing laws and regulations. The majority of these violations involved the sale of regulated or restricted products. This includes 1,731 ads for alcoholic beverages, 514 for hazardous materials, 124 for refined crystal sugar, 10 for subsidized fertilizer, 257 for “Minyak Kita” (a type of cooking oil), and three for measuring, weighing, and calibration instruments and their accessories.

Kemendag has also requested the removal of 95 trading accounts across various marketplaces due to repeated instances of displaying non-compliant advertisements. These accounts were predominantly found on major platforms such as Tokopedia, Shopee, Blibli, Lazada, and TikTok Shop.

In parallel with these enforcement efforts, the government is currently preparing a revision of Ministerial Regulation Number 31 of 2023 concerning PMSE. The proposed amendments are designed to bolster the protection of Micro, Small, and Medium Enterprises (MSMEs) and domestic products, enhance transparency on digital platforms, provide clearer product information for consumers, and strengthen the governance of digital trade to foster a fairer and more competitive environment.

Minister Santoso highlighted the critical importance of these oversight and enforcement measures, given the expanding role of e-commerce in the national economy. Data from the Central Statistics Agency (BPS) indicates that 97% of e-commerce businesses are micro-enterprises, while digital trade activity remains largely dominated by a few major platforms. “Therefore, the government is striving to ensure that the digital trading ecosystem operates healthily, fairly, and without disadvantaging small businesses,” he concluded.

Summary

The Indonesian Ministry of Trade (Kemendag) is actively monitoring 104 e-commerce business actors, including marketplaces and online retailers, until March 2026. This oversight verifies compliance with digital trade regulations, focusing on business legality, product information, trading rules, and consumer protection. This initiative aims to create a level playing field for local and international businesses and provide legal certainty for consumers and producers.

As part of its enforcement, Kemendag has issued written warnings to 37 non-compliant businesses and conducted cyber patrols on 21 e-commerce platforms. To date, 107 online stores have been blacklisted or blocked, and 2,639 advertisements for regulated or restricted products have been removed. Additionally, 95 trading accounts were requested for removal due to repeated non-compliant advertisements on major platforms. A revision of regulations is underway to further protect MSMEs and domestic products and enhance digital trade governance.

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