Indonesian Political, Business & Finance News

Government to Take Action Against Marketplaces Secretly Increasing Admin Fees

| Source: CNBC Translated from Indonesian | Economy
Government to Take Action Against Marketplaces Secretly Increasing Admin Fees
Image: CNBC

The government, through the Ministry of Micro, Small, and Medium Enterprises (UMKM), has affirmed that it will take action against marketplaces that secretly increase admin fees. Any increase in fees is considered to have a significant impact on small businesses, especially during the current global economic turmoil.

Minister of UMKM, Maman Abdurrahman, stated that his ministry has summoned all marketplace companies to request that they refrain from increasing fees before new regulations are issued. “If any marketplace attempts to push for an increase after our meeting, we will take action,” he said while attending the Mass Signing of KUR 1,000 for Creative Economy MSMEs and the Outstanding Entrepreneurial Fair in Bali, as quoted by detikcom on Friday (May 15, 2026).

From the meeting, Maman said that all companies have committed to complying with the policy. He added that if there are plans to adjust fees, marketplaces must socialise this to MSME actors at least 2 to 3 months before implementation.

Previously, several e-commerce platforms, including TikTok Shop, implemented an increase in logistics service fees, scheduled to take effect from May 18 to June 1, 2026. In addition, there were changes to the Dynamic Commission Fee scheme with a maximum commission limit of Rp40,000 to up to Rp650,000 per item, which took effect on May 18, 2026. The platform also set adjustments to shipping costs for returned goods, where sellers may be charged up to Rp5,000 for failed shipments or returns due to buyers changing their minds.

Regarding this, Maman emphasised that government regulations clearly state that fee increases are not permitted at this time. “I have stated that there should be no increases. It is not allowed. This is clear.”

Maman emphasised that the government is obliged to protect MSME actors who sell on digital platforms. Currently, the Ministry of UMKM together with related ministries are still synchronising discussions to prepare mechanisms and legal umbrellas for MSME actors and digital platform providers. “I would like to say that the government will always be in a position to provide, secure, protect, and at the same time improve the competitiveness of our micro and small enterprises that sell on e-commerce,” he said.

In recent times, a trend has emerged where several local MSME brands are said to be starting to leave marketplace platforms. The surge in logistics costs and commission cuts are suspected to be the trigger for this action.

The local cosmetics brand, True To Skin, for example, announced at the end of April that it would leave TikTok Shop due to the increase in service and logistics costs, which are considered very burdensome for sellers. In its Instagram post, the MSME stated that with the scheme in place on TikTok Shop, sellers are forced to contribute to the buyer’s shipping costs and the cost of returning goods.

“This means that our costs have increased quite drastically. If we don’t adjust prices on that platform, honestly, we will suffer big losses.”

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