Shopee's Courier Algorithm Still Raises Competition Concerns in Indonesia
Shopee’s Courier Algorithm Still Raises Competition Concerns in Indonesia
Jakarta. Indonesia’s antitrust watchdog has concluded that Shopee’s changes to its courier selection algorithm have only partially addressed competition concerns, saying its affiliated logistics arm, Shopee Express (SPX), continues to enjoy a dominant position on the platform despite regulatory intervention.
The assessment follows a year after Shopee committed to revising its courier selection algorithm to resolve an antitrust investigation by the Business Competition Supervisory Commission (KPPU), which had accused the e-commerce giant of systematically favoring SPX over rival logistics providers such as JNE and J&T.
The original case centered on allegations that Shopee designed its platform to prioritize SPX as the default delivery option, potentially violating Indonesia’s Competition Law through discriminatory practices and abuse of a dominant market position.
Rather than proceed with litigation, Shopee signed an integrity pact committing to change its algorithm, prompting KPPU to close the case based on those behavioral commitments.
However, a joint evaluation by KPPU and the Faculty of Economics and Business at Udayana University found that the changes have yet to fully eliminate the platform’s influence over consumer courier choices.
The study, which surveyed 400 respondents — comprising 200 sellers and 200 buyers — and included interviews with courier industry associations, found that while users now formally have more courier options, SPX remains the preferred choice for 48.5% of sellers and 61.5% of buyers.
The evaluation also found that Shopee’s algorithm continued to exert a strong influence over purchasing decisions, reducing the probability of buyers selecting J&T by as much as 98.2% when shopping on the platform.
“The study shows that KPPU’s intervention has created more room for healthier competition in the courier market, but we recognize that structural changes require time and continuous oversight,” KPPU Chairman Gopprera Panggabean said in a statement.
“KPPU will continue to closely monitor the implementation of these commitments to ensure the benefits are felt by all businesses, both large and small,” he added.
The Indonesian Express Delivery, Postal and Logistics Association (ASPERINDO) said only around five of the country’s roughly 700 licensed courier companies are able to operate within Shopee’s ecosystem.
ASPERINDO also argued that Shopee’s free shipping promotions continue to require external courier companies to absorb around 40% to 70% of shipping costs rather than being fully funded by the platform, raising concerns over potential distortions in competition.
Despite the remaining concerns, KPPU estimated that its intervention generated Rp 1.477 trillion ($82.26 billion) in economic benefits over the past year across sellers, consumers and Indonesia’s logistics industry.
The figure includes Rp 872 billion in gains for sellers through lower operating costs, Rp 221.57 billion in consumer benefits from greater freedom to choose delivery services and reduced transaction risks for high-value goods, and Rp 384 billion in recovered market value for logistics companies as external couriers regained part of their market share.
Based on the findings, KPPU recommended stricter oversight of non-price charges such as handling fees, mandatory algorithm neutrality for high-value transactions, a review of free shipping promotions that could amount to disguised predatory pricing, and the establishment of a dedicated digital economy division within the commission.
“Going forward, KPPU will continue strengthening its oversight framework for platform-based digital markets, including developing new approaches to understand the role of data as a source of market power,” Gopprera said.
“We are committed to ensuring Indonesia’s digital transformation remains fair for all businesses, including small logistics firms and delivery partners,” he added.
The report comes as Shopee further strengthened its lead in Indonesia’s e-commerce market.
According to Momentum Works’ Ecommerce in Southeast Asia 2026 report, Shopee controlled 54% of Indonesia’s e-commerce gross merchandise value (GMV) in 2025, up from 46% a year earlier. Its estimated GMV reached $31.2 billion, while Indonesia’s total e-commerce GMV rose to $57.7 billion.
The combined Tokopedia-TikTok Shop ecosystem accounted for 38% of the market, followed by Lazada with 6% and Blibli with 3%.
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