Trade Minister confirms NIB for e-commerce traders is not for taxation

Minister of Trade Budi Santoso has confirmed that the requirement for business actors on electronic trading platforms (e-commerce) to possess a Business Identification Number (NIB) is intended to strengthen business legality and is not related to taxation. According to Budi, there is still a perception on social media that the NIB obligation will subject business actors, particularly micro, small and medium enterprises (MSMEs), to additional taxes. He assured that this perception is incorrect. “The NIB is essentially about legality. NIB has nothing to do with taxes. I see friends on social media acting as if it’s about being taxed, but there is no connection,” Budi said in Jakarta on Monday. He explained that every business activity, whether conducted by an individual or a business entity, is required to have an NIB as a form of business legality. This provision is part of the Minister of Trade Regulation (Permendag) Number 19 of 2026 concerning the implementation of business trading through electronic systems (PMSE). “If you have legality, then access to banking and financing becomes easier,” he stated. Furthermore, the NIB is considered capable of increasing consumer trust in sellers on digital platforms. He noted that trust is a crucial factor in online transactions, making business legality a form of assurance for consumers. To provide adequate adaptation time, the government has set a grace period of 18 months for existing traders and six months for new traders to fulfil the business licensing requirements. He also assured that the Ministry of Trade is ready to provide assistance and facilitation for MSMEs experiencing difficulties in the NIB registration process. “Processing the NIB is free and easy. Everything is done online. It only takes a short while to complete, maybe 30 minutes. There are plenty of guides available on how to do it,” he added.