Regulation of the Minister of Trade Number 19 of 2026 Updates Digital Trade Governance and Supervision

Introduction

On June 8, 2026, the Ministry of Trade (“MOT”) issued Regulation of the Minister of Trade Number 19 of 2026 on the Operation of Trading Business Through Electronic Systems (“MOT Regulation 19/2026”). MOT Regulation 19/2026 updates the provisions on the operation of trading through electronic systems by expanding the scope of regulated business models, establishing licensing obligations, and regulating the utilization of Artificial Intelligence (“AI”) in electronic trading activities.

The Government enacted MOT Regulation 19/2026 by considering technological developments and public needs. Based on the recitals, MOT Regulation 19/2026 aims to enhance the competitiveness of domestic products, improve business licensing compliance, support the empowerment of micro and small enterprises, protect consumers, and encourage the development of trading through electronic systems. To support these objectives, MOT Regulation 19/2026 regulates various aspects of trading activities through electronic systems, including business licensing, cross-border trade, digital platform supervision, and the utilization of AI.

Comparison

MOT Regulation 19/2026 repeals and replaces Regulation of the Minister of Trade Number 31 of 2023 on Business Licensing, Advertising, Guidance, and Supervision of Business Actors in Trading Through Electronic Systems (“MOT Regulation 31/2023”). The following is a comparison between MOT Regulation 19/2026 and MOT Regulation 31/2023:

Key Provisions

Categories of Businesses, Business Models, and Business Licensing

As stipulated in Article 2 and Article 3, MOT Regulation 19/2026 classifies businesses into Domestic Businesses and Foreign Businesses, each comprising Merchants, PPMSEs, and Intermediary Service Providers (Penyelenggara Sarana Perantara, “PSP”). MOT Regulation 19/2026 also expands the scope of PPMSE business models into 8 (eight) categories, namely:

1. Marketplaces;

2. Online Retail;

3. Online Classified Ads;

4. Price Comparison Platforms;

5. Daily Deals;

6. Social-Commerce;

7. Ride Hailing; and

8. Online Travel Agents.

Pursuant to Article 4 and Article 7, every Businesses must hold a Business License in the Trade sector, except for PSPs that are not direct beneficiaries or are not involved in transaction contracts. PPMSEs must facilitate Merchants in processing licenses and reject the registration of Domestic Merchants that lack business legality. In addition, Article 17 obligates PPMSEs to provide a temporary registration feature labeled "In Legalization Process" and allow a maximum period of 6 (six) months for Merchants to complete their licensing. If this period is exceeded, PPMSEs must restrict the Merchant's access rights by suspending transactions. Furthermore, Article 20 stipulates that the Ministry of Trade shall publish the identities of PPMSEs and PSPs that hold Business Licenses through the official website of the Ministry of Trade.

Provisions for Foreign Merchants and KP3A Obligations

Article 6 obligates Foreign Merchants operating through platforms in Indonesia to satisfy certain requirements before conducting trading activities. These requirements include:

1. Full identity;

2. A business license from the country of origin legalized by the competent authority;

3. Proof of product standard compliance;

4. A transaction account number;

5. The use of the Indonesian language in product descriptions; and

6. Information regarding the country of origin for goods shipment.

Such documents must also be accompanied by an inspection report from an independent survey institution in the country of origin. PPMSEs must store these documents and reject the registration of Foreign Merchants that fail to meet the requirements. In addition, Article 22 and Article 42 obligate Foreign PPMSEs to appoint a Foreign Trade Company Representative Office in the Field of Trading Through Electronic Systems (Kantor Perwakilan Perusahaan Perdagangan Asing di Bidang Perdagangan Melalui Sistem Elektronik, “KP3A Bidang PMSE”) if they meet any of the following criteria:

1. Possessing at least 1,000 consumers within a 1 (one) year period;

2. Shipping at least 1,000 packages within a 1 (one) year period; or

3. Holding at least a 1% share of domestic internet traffic.

In accordance with the provisions set forth in Article 42 through Article 45, the KP3A in the Field of PMSE must be domiciled in a provincial capital and/or regency/city, hold a SIUP3A in the Field of PMSE, and is prohibited from representing more than 1 (one) Foreign PPMSE. Additionally, the KP3A in the Field of PMSE is tasked with resolving disputes, providing consumer protection, and supporting the enhancement of domestic product competitiveness.

Complaint Services, Consumer Protection, and Fee Transparency

Every PPMSE and PSP must provide complaint services for Merchants and consumers. Such services must be displayed on the main page, provide more than one communication channel, and satisfy the response time according to the applicable Service Level Agreement (“SLA”), as regulated in Article 10 through Article 14. MOT Regulation 19/2026 also prioritizes dispute resolution through deliberation to reach a consensus. Furthermore, PPMSEs excluding the Online Retail and Price Comparison Platform models must inform and agree upon any service fees charged to Merchants through a written agreement or a downloadable electronic contract pursuant to Article 14. If a PPMSE unilaterally amends a contract, the Merchant is entitled to submit a written objection, and the PPMSE must provide a response no later than 14 (fourteen) working days. In the event that the PPMSE fails to provide a response within that period, the Merchant's objection may serve as a basis for dispute resolution.

Product Information, Standard Compliance, and Merchant Verification

Merchants must submit information regarding the origin of goods and product standard compliance as stipulated in Article 15. Such information includes, among others:

1. Indonesian National Standard (Standar Nasional Indonesia, “SNI”) certificate number;

2. Halal certificate number;

3. Health, Safety, Security, and Environment (“HSSE”) registration number; and

4. Distribution licenses for pharmaceutical or food products.

PPMSEs must also provide the means to display such information on their platforms. In addition, PPMSEs may provide labels to Merchants, such as official stores, authorized stores, star sellers, or premium stores, pursuant to Article 16. The provision of such labels must be based on a document verification process proving the relationship between the Merchant and the brand owner or official distributor. The PPMSE is responsible for conducting this verification, while the Merchant is responsible for the authenticity of the submitted documents.

Business Models, Price Manipulation, and Minimum Price of Imported Goods

PPMSEs with Marketplace and Social-Commerce business models are prohibited from selling their own manufactured goods, as stipulated in Article 25. In addition, Social-Commerce operators are also prohibited from facilitating payment transactions within their electronic systems. Cross-border PMSE operations must apply a minimum goods price of Freight on Board (“FOB”) USD 100 (one hundred United States dollars) per unit pursuant to Article 23. PPMSEs must also prevent price manipulation practices and unfair business competition as regulated in Article 18. Prohibited practices include:

1. Continuous sale of goods below a reasonable cost of production;

2. Repeated price subsidization that affects the competitiveness of Domestic Products; and

3. Misuse of user data to prioritize platform-affiliated companies.

Statistical Data Reporting and Business Cessation

PPMSEs must submit trade data and information to the government agency responsible for statistical affairs, as regulated in Article 21. In addition, the owners, management, or responsible persons of PPMSEs, non-exempted PSPs, and foreign PPMSEs that have appointed a representative must report the cessation of business activities through the Online Single Submission (“OSS”) System pursuant to Article 26. This obligation applies if the PPMSE, non-exempted PSP, or foreign PPMSE that has appointed a representative ceases its business activities.

Electronic Advertisement Display and Advertisement Access Termination

Provisions regarding electronic advertisements are regulated in Chapter IV, which covers Article 27 through Article 34. Businesses are prohibited from displaying electronic advertisements that contain non-compliant information regarding the price, quality, or warranty of goods and/or services. In addition, businesses must provide information on the risks associated with the use of goods and/or services and provide a function to close or skip the advertisement display that is easily accessible to consumers. PPMSEs must also remove access to advertising content that violates applicable laws and regulations pursuant to Article 33. If a Business repeats such a violation up to 3 (three) times, PPMSEs with business models other than Online Retail must block the Business Actor's account and cannot facilitate the registration of a new account using the same Business License.

Domestic Products, Goods Aggregation Activities, and Search Algorithms

PPMSEs must support the promotion of Domestic Products and the empowerment of Micro and Small Enterprises as stipulated in Article 36 through Article 40. Such support is carried out, among others, through promotional programs for Micro and Small Enterprises and the provision of service fee reliefs. MOT Regulation 19/2026 also regulates Goods Aggregation activities, which encompass the repackaging and provision of goods storage facilities. Pursuant to Article 37, these activities can only be conducted for Domestic Products as evidenced by the manufacturer's Business Identification Number (Nomor Induk Berusaha, “NIB”). Additionally, product packaging must display the identity of the original manufacturer. PPMSEs must also prioritize Domestic Products within their search, recommendation, and product ranking systems. This provision is set forth in Article 40, which obligates Domestic Products to be displayed on the first row of the first page of consumer search results.

Utilization of AI in Electronic Commerce

MOT Regulation 19/2026 regulates obligations for Businesses using AI in electronic commerce activities. Businesses must provide information regarding the use of AI through labels or descriptions on goods, services, promotional offers, and recommendation results generated by AI, as stipulated in Article 47. Furthermore, PPMSEs must compile governance for AI use according to its level of risk. PPMSEs must also provide correction mechanisms and complaint services for consumers aggrieved by information or recommendations generated by AI. This provision is set forth in Article 47 of MOT Regulation 19/2026.

Guidance, Supervision, and Data Requests by the Government

Provisions regarding guidance and supervision are set forth in Chapter VIII, which covers Article 48 through Article 56. Based on these provisions, the Minister of Trade and the Director General of Consumer Protection and Trade Compliance (Direktur Jenderal Perlindungan Konsumen dan Tertib Niaga, “PKTN”) are authorized to conduct guidance and supervision over the operation of trading through electronic systems. In executing supervision, the government may request data and information from PPMSEs beyond the data submitted through statistical reporting. Such data and information may include dispute resolution documents between Merchants and PPMSEs, as well as a list of Merchants still utilizing the temporary registration feature, as regulated in Chapter VIII.

Administrative Sanctions

Administrative sanctions for violations against the provisions of MOT Regulation 19/2026 are stipulated in Article 57 through Article 72. These sanctions are imposed progressively, starting with a written warning a maximum of 3 (three) times within a period of 14 (fourteen) calendar days. If the violation persists, the businesses may be placed on a supervision priority list or a blacklist, subject to temporary blocking of electronic services, up to the revocation of the Business License. To obtain the unblocking of services or removal from the blacklist, businesses must submit an application in accordance with the format set forth in the Annex of MOT Regulation 19/2026.

Transitional Provisions

Business Licenses already held by PPMSEs, Merchants, PSPs, and KP3As in the Field of PMSE remain valid as long as their validity period has not expired and they have been recorded in the OSS System, as stipulated in Article 73. In addition, Merchants that have operated before MOT Regulation 19/2026 was enacted are granted an adjustment period of 18 (eighteen) months to fulfill business licensing provisions pursuant to Article 74.

Closing

MOT Regulation 19/2026 also prescribes more detailed requirements for foreign merchants, including the obligation to establish a KP3A in the Field of PMSE for foreign platforms meeting certain criteria, the introduction of a prohibition on Social-Commerce platforms facilitating payment transactions, the implementation of a minimum price for imported goods in cross-border trade, the requirement to prioritize Domestic Products in search and product recommendation systems, and the imposition of enhanced transparency and governance obligations for AI usage. Furthermore, PPMSEs and businesses must comply with provisions concerning complaint services, service fee transparency, product information and standards, and the display of electronic advertisements. The Government is authorized to conduct guidance, supervision, and specific data requests from PPMSEs, while Merchants operating prior to the entry into force of MOT Regulation 19/2026 are granted an adjustment period of 18 (eighteen) months to comply with business licensing provisions. Violations of MOT Regulation 19/2026 may be subject to progressive administrative sanctions, ranging from written warnings, inclusion in the supervision priority list or blacklist, temporary blocking of electronic services, up to the revocation of the Business License.