E-Commerce Must Prioritise Local Products, Trade Minister Urges Transparency from Platforms to Consumers

The Minister of Trade, Budi Santoso, stated that e-commerce regulations must prioritise local products within marketplace showcases and ensure transparency between traders, digital platforms, and consumers. This comes as the Ministry of Trade has updated the provisions for trade through electronic systems (PMSE) via Minister of Trade Regulation (Permendag) Number 19 of 2026.

“First, we want our local products to be prioritised. Secondly, there must be transparency from the platform to the seller regarding all aspects, including administration. Furthermore, there must be consumer protection,” said Budi when met in Surakarta, Central Java, on Monday, 21 September 2026.

He noted that trust among the three main actors in the e-commerce ecosystem is essential for advancing digital-based trade activities in Indonesia. “We want our sellers to be trustworthy sellers with high-quality products. If the products are good and reliable, consumers will certainly be satisfied,” he added.

The Minister, affectionately known as Busan, stated that sellers and producers, including MSME actors, digital trade platforms or marketplaces, and consumers, each have their own roles but are interdependent. “These three must function together. It is impossible for one to operate in isolation. Sellers need platforms, platforms need sellers, and they also need consumers,” said the Minister of Trade.

Therefore, he continued, the government must be able to provide protection to all three entities simultaneously through dynamic and relevant regulations. “Everyone must be protected so that the ecosystem functions well. However, we are continuously evaluating this. By nature, Permendag policies are dynamic,” he remarked.

Previously, Minister Budi stated that his ministry is open to further amending e-commerce regulations to keep pace with developments and needs within the digital trade ecosystem. “If further changes are required, we will implement them, because in principle, Permendag is dynamic. Whenever there is a need for change, we will continue to do so,” Budi said during a Working Meeting with Commission VI of the Indonesian House of Representatives (DPR RI) in Jakarta, Thursday, 17 September 2026.

This statement was made in response to questions from Commission VI Member Mufti Aimah Nurul Anam regarding the protection of traders on e-commerce platforms, specifically concerning fund retention periods, store closures, and objection mechanisms for traders.