E-commerce platforms required to prioritise local products to boost MSME competitiveness
The government has mandated that e-commerce platforms or online marketplaces prioritise local products in search results, recommendations, and rankings, in an effort to strengthen the competitiveness of MSMEs through Trade Ministerial Regulation No. 19 of 2026.
Deputy III for Partnership and Media Relations at the Government Communication Agency (Bakom) RI, Kurnia Ramadhana, stated that the regulation does not dictate the technology or algorithms used by each platform, but rather obliges platforms to ensure domestic products are given top placement.
“Ensuring that product search, recommendation, and ranking systems prioritise the display of domestic products in the top positions on the main page, particularly products produced or traded by business actors,” Kurnia said in a press statement cited in Jakarta on Wednesday.
This provision is part of the government’s effort to strengthen the digitalisation of trade while protecting and enhancing the competitiveness of micro, small, and medium enterprises (MSMEs) amid the growth of the national digital trade ecosystem.
Kurnia explained that each Electronic Commerce Operator (PPMSE) retains the flexibility to determine the technical mechanisms for implementing the rule according to their system characteristics, provided they fulfil the obligations set out in the regulation.
To ensure implementation, the Ministry of Trade, through the Directorate General of Consumer Protection and Trade Order (PKTN), will supervise compliance by each platform. Supervision will include requesting clarification and necessary information from platform operators, as well as following up on public reports of suspected violations.
“The implementation of this provision is also expected to be supported by the participation of business actors and the public through a complaints mechanism,” Kurnia said.
Kurnia added that the government is prioritising a guidance and consultation approach to give platforms time to adjust their systems. Should operators fail to comply, the government will impose administrative sanctions in stages according to the level of violation.
Beyond prioritising local products, Trade Ministerial Regulation No. 19 of 2026 also aims to strengthen consumer protection in digital trade. The regulation requires business actors to provide accurate, clear, and transparent information about the goods or services being traded, ensure the legality of business actors, and maintain transparency in costs and promotions, as well as regulate the use of artificial intelligence (AI) in marketing.
“PPMSE are also required to provide a consumer complaint service, which is expected to serve as an initial resolution mechanism so that any issues arising can be handled quickly, effectively, and proportionally,” Kurnia said.