Local product sellers on marketplaces to soon enjoy 50 percent incentive

The Ministry of Micro, Small, and Medium Enterprises (UMKM) has confirmed that sellers of local products on marketplaces will soon enjoy incentives in the form of service fee reductions of up to 50 percent within the next one to two months. The policy is one of the provisions in UMKM Ministerial Regulation No. 3 of 2026 concerning the Protection and Enhancement of Competitiveness of Micro and Small Enterprises in Trade Through Electronic Systems (PMSE), which was promulgated on 17 June 2026. Deputy for Small Enterprises at the UMKM Ministry, Temmy Satya Permana, told journalists in Jakarta on Wednesday that his office is currently coordinating with various digital platforms to prepare the system for implementing the incentive. “It was promulgated on 17 June. A maximum of six months is given. At the very least, it should be possible within one to two months. We shouldn’t delay, as our micro and small sellers are waiting for this,” Temmy said. He explained that the ministry is striving to accelerate the implementation of the regulation so that micro and small enterprises can immediately apply for the service fee reduction incentive. According to him, the incentive is intended to encourage micro and small business actors to be more active in selling domestic products on digital platforms while simultaneously increasing the competitiveness of local goods amidst competition with imported products. Regarding the mechanism for determining incentive recipients, Temmy stated that the UMKM Ministry will verify sellers who claim to sell local products. In the initial stage, the ministry is asking digital platforms to submit data on sellers deemed to be selling domestic products. Subsequently, business actors will also be required to make a self-declaration through the Sapa UMKM platform. “There will be a self-declare scheme from each seller filling in SAPA UMKM that they sell local products. We will then jointly verify whether it is true,” he said. He added that the provision of this incentive is part of the government’s effort to build an ecosystem that is more supportive of domestic products. “We want to build a spirit of selling local products. How? By providing incentives. We all know that imported products are much cheaper. So we want to provide a bit of balance,” he remarked. Assistant Deputy for Financing and Investment of Small Enterprises at the UMKM Ministry, Ali Manshur, added that the government and digital platforms are currently preparing the mechanism and supporting systems to implement the policy. “We are working together with the platforms to prepare the system. The regulation gives us six months, but we are pushing to do it as quickly as possible,” Ali said. UMKM Ministerial Regulation No. 3 of 2026 was issued to create a fairer, more transparent, and sustainable electronic commerce ecosystem for micro and small enterprises that utilise digital platforms to market their products. One of its provisions regulates the granting of incentives in the form of service fee reductions of up to 50 percent for micro and small enterprises selling domestic products through PMSE platforms.