China Dominates Indonesia's E-Commerce, Finance Minister Purbaya Steps In to Seek Evidence

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has acknowledged receiving information that Chinese traders exporting to foreign markets, including Indonesia, receive a 15% incentive from their government. This situation puts local traders in Indonesia at a disadvantage. Purbaya stated that his side will investigate the matter further. “If goods from China compete directly with goods from here, we are at a cost disadvantage or price disadvantage. Why? I heard that when Chinese people export, they get a 15% allowance from their government. Is that true for goods here? I’m double-checking,” Purbaya explained during the Halal Bi Halal at the Ministry of Finance office on Wednesday (25/3/2026). If the incentive is indeed true, Purbaya emphasised that the government must take steps to enable local goods to compete in the domestic market. Purbaya also said he would consider taxing the Chinese producers or exporters. “If that’s the case, then we should take steps that make our goods more competitive in our own domestic market,” he asserted. During the Eid holiday, Purbaya was known to have gone live on the social media platform TikTok. He received many complaints from the public regarding the dominance of Chinese products on domestic e-commerce. Purbaya admitted that the government is currently considering steps to strengthen domestic companies so they can compete in the digital market. “I’m thinking about how to turn around the marketplace so it’s not just dominated by China. For example, Tokopedia is dominated by China, right? TikTok wants to be here too,” he said when met after Eid prayers on Wednesday (20/3/2026).