Indonesian Political, Business & Finance News

Trade Minister Cracks Down on Rogue E-commerce Traders, 95 Accounts Blocked

| Source: CNBC Translated from Indonesian | Regulation
Trade Minister Cracks Down on Rogue E-commerce Traders, 95 Accounts Blocked
Image: CNBC

Ministry of Trade tightens digital trade oversight, blocking 95 merchant accounts and removing 2,639 non-compliant ads.

Minister of Trade Budi Santoso stated that Shopee had the highest number of accounts affected by these actions. The move is part of the government’s efforts to maintain healthy competition and protect domestic businesses amid intense online trade competition.

“We have requested the removal of 95 merchant accounts across marketplaces that repeatedly posted electronic advertisements violating regulations, comprising 26 accounts on Tokopedia, 30 on Shopee, 22 on BliBli, 3 on Lazada, 8 on Shop Tokopedia, and 8 on Shopee Food,” Budi said during a joint session with the House of Representatives’ Commission VI at the Parliament Complex in Jakarta on Tuesday, 26 May 2026.

In addition to targeting merchant accounts, the Ministry of Trade has conducted cyber patrols on promotional materials and trade activities across 21 electronic trading platforms. As a result, the government has requested the removal of 2,639 electronic advertisements deemed non-compliant with digital trade regulations.

The majority of the removed ads were for alcoholic beverages (1,731), followed by hazardous materials (514), refined sugar crystals (124), subsidized fertiliser (10), MinyaKita oil (257), and measuring, weighing, and balancing equipment (3).

According to Budi, oversight of electronic trading platforms is now being conducted more aggressively, both online and offline. The government has also prepared layered penalties, including written warnings, account takedowns, blacklisting, and temporary suspension of digital platform services.

By March 2026, the Ministry of Trade had monitored 140 electronic trading platform operators online, comprising six marketplaces, 92 online retailers, and other digital trade entities such as classified ads and daily deals platforms.

Of these, 37 operators received first written warnings for non-compliance with regulations, while those failing to meet deadlines were issued second warnings.

In total, the Ministry of Trade has issued 3,310 penalty letters to electronic trading platform operators across four reporting periods from Q1 2024 to Q3 2025.

For the most severe penalties—blacklisting and temporary suspension of platform services—52 operators were sanctioned in Q4 2024, seven in Q1 2025, and 48 in Q2 2025.

MSMEs Dominate E-commerce

Budi further noted that digital trade oversight has become increasingly crucial as Indonesia’s e-commerce ecosystem remains dominated by micro businesses. According to his data, approximately 97% of national digital traders in 2024 were from the micro business sector.

“E-commerce platforms are dominated by major players such as Shopee, Tokopedia, and Bukalapak. This situation necessitates monitoring potential monopolistic practices and platform policies that could harm small traders,” he said.

Referring to a 2024 survey by the Central Statistics Agency (BPS), online traders are now present across all Indonesian provinces. However, Java remains the primary hub for digital trade activity, accounting for 42% of total activity.

Budi added that the government now has a legal basis through Government Regulation No. 80 of 2019 and Ministry of Trade Regulation No. 31 of 2023 to create a level playing field between online and offline businesses, including between local and global players.

“The key principle is ensuring that all offline regulations are equally applied online without exception,” he stated.

In addition to tightening oversight, the government is promoting domestic product usage and requiring foreign platforms to have official representatives in Indonesia to ensure more effective digital trade regulation and legal certainty for consumers and local producers.

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