Trade Minister Guarantees Mandatory NIB for E-Commerce Sellers Unrelated to Tax
Minister of Trade (Mendag) Budi Santoso has stressed that the obligation for business actors on e-commerce platforms to have a Business Identification Number (NIB) is not related to tax collection. This provision is part of the new regulation on trading through electronic systems (PMSE), which aims to strengthen the legal standing of online sellers.
As is known, the NIB obligation is regulated in Minister of Trade Regulation (Permendag) Number 19 of 2026 concerning the Implementation of Business Trading Through Electronic Systems (PMSE), which came into effect on 8 June 2026.
Responding to various information circulating on social media, Budi dismissed the notion that the NIB requirement would automatically subject online sellers to taxation.
“The NIB is part of the revision of the e-commerce Permendag. The NIB is essentially about legality. The NIB has nothing to do with tax. I see friends on social media [thinking] it means being taxed, it has no connection,” Budi said when met in Jakarta on Monday (22/6/2026).
According to Budi, every business activity is fundamentally required to have an NIB, whether run by an individual or a business entity. He assessed that having an NIB actually provides several benefits for business actors, particularly UMKM.
One of the main benefits is easier access to financing from financial institutions. With legal business status, business actors are considered more likely to obtain loans or business capital from banks.
Furthermore, the NIB is also seen as increasing consumer trust in sellers. Budi said that business legality is one of the factors considered by buyers when making online transactions.
“If consumers don’t trust [the seller], they can’t sell. One of the ways to instil consumer trust in a seller is legality. If they have legality, it means their business is legitimate,” he explained.
Although the regulation is already in effect, the government is providing a transition period for business actors to complete the requirements. Sellers who are just starting a business are given six months to obtain an NIB, while long-standing business actors are given a deadline of up to 18 months.
Budi also confirmed that the NIB issuance process can now be done online at no cost. Moreover, the Ministry of Trade is ready to provide assistance if business actors encounter difficulties during the application process.
“Getting an NIB is free and easy. Everything is sufficiently done online. It can be completed in a short time, maybe 30 minutes. There are many guides on how to do it,” said Budi.
“If there are difficulties, the Ministry of Trade can provide assistance and facilitation on how to create an NIB. So, this is to help develop your businesses, especially UMKM. They can grow better,” he concluded.