MSMEs Minister Issues Regulation to Protect Small Businesses on Marketplaces
The government has emphasised the need for regulation to provide protection and increase competitiveness through electronic trading systems.
Jakarta (ANTARA) - Minister of Micro, Small, and Medium Enterprises (UMKM) Maman Abdurrahman has issued Ministerial Regulation Number 3 of 2026 concerning the Protection and Enhancement of Competitiveness of Micro and Small Enterprises in Trading Through Electronic Systems (PMSE).
In the regulation, enacted on 17 June 2026, the government stressed the importance of creating a fairer, more transparent, and sustainable electronic trading ecosystem for micro and small enterprises (UMK) that utilise digital platforms to market their products.
“Electronic trading practices for micro and small enterprises face challenges of unbalanced competition, thus regulation is needed to provide protection and increase competitiveness through electronic trading systems,” the regulation stated.
This regulation serves as a reference for central and regional governments in providing protection and enhancing the competitiveness of MSMEs on digital platforms, including for marketplaces that partner with UMK, as well as for UMK themselves in obtaining protection and improving competitiveness within the digital ecosystem.
Through this regulation, MSMEs are entitled to several rights when running businesses through digital platforms, including the right to fair and transparent partnership agreements, a guarantee of freedom from undisclosed deductions or additional fees, and certainty of information regarding costs and cooperation mechanisms with platforms.
To obtain these rights, UMK must possess a business registration number (NIB), comply with the partnership agreements that have been made, provide correct and clear information, and prioritise selling domestic products.
In efforts to protect UMK, the regulation requires marketplace operators to facilitate UMK in obtaining an NIB, comply with partnership agreements, actively participate in MSME development programmes, and refrain from imposing undisclosed deductions or additional fees.
Furthermore, the regulation pays attention to inclusivity by prioritising support for MSMEs managed by persons with disabilities or those that employ persons with disabilities.
To ensure effective implementation, the Ministry of MSMEs will conduct continuous monitoring and evaluation of the protection and competitiveness enhancement of MSMEs in electronic trading systems.
Based on the results of this monitoring and evaluation, the Minister of MSMEs is authorised to issue warning letters or written reprimands to parties that fail to comply with the provisions set out in the regulation.
Additionally, the Minister may provide supervisory recommendations to institutions authorised to oversee business competition, make public announcements, and even recommend the revocation of business licences in accordance with statutory provisions.
The government may also grant appreciation to digital platform operators deemed to have played an active role in protecting and enhancing the competitiveness of MSMEs, including in the form of certificates of appreciation, publicity, or other forms of recognition.
The government hopes this regulation will create a more inclusive digital economy ecosystem, increase the competitiveness of MSMEs, and strengthen the position of domestic products in the national digital market.