New E-commerce Rules for TikTok and Shopee Take Effect 1 July
E-commerce platforms operating in Indonesia, including TikTok and Shopee, are now bound by two major regulations that took effect on 1 July 2026. The new framework covers the collection of online trader taxes and platform operational rules.
The online trader tax is regulated under Minister of Finance Regulation (PMK) Number 37 of 2025, whilst platform operations are governed by Minister of Trade Regulation (Permendag) Number 19 of 2026.
Here are the details of the new rules for e-commerce:
- Online Merchant Income Tax
Under the regulation, marketplaces are required to collect Income Tax (PPh) Article 22 at a rate of 0.5% on the gross turnover of domestic merchants on the platform. This rule refers to the tax provisions of Law Number 7 of 2021 on the Harmonisation of Tax Regulations (UU HPP). Taxpayers with an annual turnover below Rp500 million will not be subject to this final income tax.
- Mandatory Business Registration Number (NIB)
Minister of Trade Regulation Number 19 of 2026 requires all merchants to possess a business permit, such as a Business Registration Number (NIB). E-commerce platforms may reject the registration of merchants who do not have a business permit. Registration may be allowed provided the marketplace notes the merchant’s status as ‘In the Process of Legalisation’.
- Protection of Local Products
The e-commerce regulations aim to protect the circulation of local products by ensuring domestic goods are more easily visible to buyers. This is achieved by giving priority to local products in search algorithms, shopfront placement, and promotions. Additionally, there is a ban on the circulation of cheap imported goods that do not meet document standards.
- Ban on Price Wars
The new rules also prohibit price wars within applications. Furthermore, they require transparency regarding fees charged to business operators, such as the amount of administrative fees, commission splits, and deductions for other services.
- Social Commerce Ban
Social media platforms are also prohibited from functioning as e-commerce sites. Platforms cannot facilitate direct payments within the application unless they possess a separate application permit.