Ministry of Trade Drafts Regulation on E-Commerce Platform Fees

The Ministry of Trade (“Kemendag”) is currently reviewing a plan to regulate platform fees in electronic commerce activities. This review is driven by the need to address the issue of additional cost borne by merchants operating on electronic commerce platforms.

“The Ministry of Trade is currently reviewing and identifying which types of fees are commonly imposed and have indeed become burdensome for merchants,” said Bambang Wisnubroto, Acting Director of the Directorate of Trade Via Electronic System (Perdagangan Melalui Sistem Elektronik – “PMSE”) and Services Trade at the Ministry of Trade.

Bambang explained that the implementation of programs such as free shipping, cashback, and promotional campaigns has resulted in reduced income for merchants due to the imposition of platform fees. The Ministry of Trade is currently identifying the need to establish new regulations by taking into account the equalization of fee imposition between electronic commerce and conventional trade.

According to Bambang, the regulation of platform fees imposed on electronic commerce merchants also has an impact on conventional trade, which is increasingly struggling to compete. “This is still under our review to assess whether a specific regulation related to these fees will indeed be required and subsequently incorporated into the policies,” he added.