Indonesian Political, Business & Finance News

Marketplaces Required to Halve Service Fees for Local Products

| Source: ANTARA_ID Translated from Indonesian | Economy
Marketplaces Required to Halve Service Fees for Local Products
Image: ANTARA_ID

Online marketplaces are now required to provide a discount of at least 50 per cent on service fees to micro and small enterprises (UMKs) that exclusively sell domestic products. This provision is stipulated in the Minister of UMKM Regulation Number 3 of 2026 concerning the Protection and Enhancement of UMK Competitiveness in Trade Through Electronic Systems (PMSE).

Deputy for Small Business at the Ministry of UMKM, Temmy Satya Permana, stated on Monday that the service fees currently charged by marketplaces to business operators range from 10 to 18 per cent. Service fees refer to administrative fees, commission fees, or other application service charges imposed on UMKs for the use of the PMSE platform’s applications, systems, or basic services for each transaction.

With this policy, UMKs that meet the criteria are expected to receive fee relief while simultaneously increasing the competitiveness of local products on digital platforms. “They (the marketplace platforms) support this policy,” Temmy said.

Under the regulation, the service fee discount is granted to verified UMKs that only sell domestic products. The discount applies to every sales transaction of domestic products made by the incentive-receiving UMK. To obtain this facility, UMKs must submit an application through the SAPA UMKM service. The verification process is subsequently carried out by the Ministry of UMKM through the work unit handling data and information.

To receive the incentive, UMKs must fulfil several requirements, including possessing a business identification number (NIB), submitting business information correctly and clearly, selling domestic products that meet quality and safety standards, and being registered in SAPA UMKM. However, the service fee reduction does not apply to UMKs selling ready-to-eat processed food products or electronic products manufactured by large domestic industries.

The ministerial regulation also grants marketplaces the authority to reject or terminate the provision of incentives if a UMK is found to be selling products other than domestic products. In the event of a rejection or termination of incentives, UMKs may submit a clarification or objection to the marketplace according to the mechanism established by the government. The government hopes this service fee reduction policy will encourage more business operators to market domestic products through digital platforms, while strengthening the competitiveness of local UMKs amidst increasingly fierce electronic trade competition.

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