New e-commerce regulations mandate Business Identification Number for online sellers
The Ministry of Trade (Kemendag) is finalising revisions to digital trade regulations through amendments to Minister of Trade Regulation (Permendag) No. 31 of 2023 concerning Trade via Electronic Systems (PMSE). The new regulation is set to tighten marketplace governance while creating more space for micro and small enterprises (UMK) products on digital platforms.
Trade Minister Budi Santoso stated that the regulatory revisions aim to establish a healthier, more open digital trade ecosystem with greater protection for micro and small enterprises (UMK) and local products. “This initiative has been developed as a collective effort to create a fairer, more transparent digital trading ecosystem that supports micro and small enterprises (UMK) and domestic products,” Budi said during a working session with the House of Representatives’ Commission VI at the parliamentary complex in Jakarta on Tuesday (26 May 2026).
Budi explained that the government’s revision of Permendag 31/2023 focuses on five key areas: strengthening local product promotion on marketplaces, simplifying business legalisation, enhancing platform-merchant relationship transparency, consumer protection, and regulating the use of artificial intelligence (AI) in digital trade.
Through the revisions, the government aims to ensure UMK and domestic products receive priority display on digital platforms. Additionally, sellers and merchants will be required to possess a Business Identification Number (NIB) or official business permit to ensure orderly e-commerce activities.
On the other hand, marketplaces will be required to be more transparent regarding fee structures, promotions, and partnership contracts with merchants. The government believes transparency is necessary to prevent small businesses from being disadvantaged in the digital ecosystem.
Furthermore, electronic trading platforms must provide clear complaint and dispute resolution mechanisms. Marketplaces will also need to verify the legitimacy of merchants selling on their platforms.
The new regulations also govern the use of AI in product recommendation and promotion systems. The government aims to ensure the technology supports fair competition without disadvantaging specific businesses.
From a consumer perspective, the regulatory revisions will strengthen the public’s right to know product origins and seller legitimacy. Consumers will also receive transparency regarding AI usage in product recommendations on digital platforms.
Generally, the Permendag 31/2023 revision focuses on five main aspects: protecting local products, digital platform transparency, merchant legal certainty, consumer protection, and AI regulation in electronic trade.