Ministry of MSMEs prepares new regulations on e-commerce service fees
The Ministry of Micro, Small, and Medium Enterprises (MSMEs) is currently preparing regulations regarding service fees on e-commerce platforms to create a fairer ecosystem for micro and small business owners.
Minister of MSMEs Maman Abdurpendoro stated that the regulation will be implemented through a Ministerial Regulation on the Protection and Enhancement of MSME Competitiveness, which has now completed the harmonisation process. “We have received a letter from the Ministry of Law stating that harmonisation is complete; we are now merely awaiting promulgation by the State Secretariat,” Maman said following a working meeting with Commission VII of the House of Representatives (DPR RI) in Jakarta on Monday.
He explained that a primary focus of the policy is the restructuring of cost components within the marketplace ecosystem, which have historically been diverse and often confusing for MSME players. The government intends to standardise these cost components into three main categories: registration fees, service fees, and promotion fees. “Currently, on marketplace A, the name is different; on marketplace B, it is different. This leads people to believe there are many types of levies, when in reality, there are only three components,” he noted.
Furthermore, the government is encouraging the provision of incentives, such as service fee reductions of up to 50 per cent, for micro and small businesses selling on marketplaces, particularly for domestic products. Maman emphasised that this policy is a form of government intervention to protect small businesses from competing directly against medium and large enterprises on digital platforms without adequate safeguards. He stated that the government cannot allow micro and small businesses to ‘fight freely’ in marketplaces without supportive policy intervention.
In addition to fee regulation, the rules will govern the relationship mechanism between marketplaces and sellers, including a requirement for minimum one-year contracts to ensure business certainty. Regarding adjustments to service fees, e-commerce platforms will be required to provide notice at least three months in advance. “For example, if a marketplace contracts with a seller for one year, the service fee should not be changed during that year,” Maman said.
Responding to complaints regarding rising e-commerce service fees, Maman stated that the Ministry has requested marketplaces to hold off on fee increases to avoid misunderstandings in the field. Furthermore, the Ministerial Regulation will require businesses seeking incentives to be integrated into the SAPA UMKM system to strengthen supervision and data synchronisation. Maman added that the substance of the regulation has been consulted with relevant ministries and marketplace industry players, receiving generally aligned responses.