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🇮🇩 Indonesia /Economy & Trade

Indonesia Updates E-Commerce Rules, Officially Including Ride-Hailing and OTAs

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement New plan
  • Indonesia's Trade Ministry has updated e-commerce regulations, officially including ride-hailing services and Online Travel Agents (OTAs) as electronic system organizers.
  • The new rules focus on regulating the buying and selling of goods facilitated by ride-hailing platforms, not the transportation services themselves.
  • Key revisions aim to boost local products, ensure legal compliance, protect consumers, and improve digital governance, with a focus on fair competition and technological advancements.

Indonesia's Ministry of Trade has officially incorporated ride-hailing services and Online Travel Agents (OTAs) into its electronic commerce regulations, signaling a significant update to the country's digital trading landscape. The revised Trade Ministerial Regulation, replacing the 2023 version, now recognizes these platforms as Electronic System Trading Activities (PMSE) organizers.

Trade Minister Budi Santoso clarified that the regulation specifically targets the commercial aspects of ride-hailing platforms that facilitate the buying and selling of goods. "Thus, what is regulated is the buying and selling of the goods, not the transportation service itself," Budi stated. Similarly, OTAs are now defined as electronic systems for selling or booking travel services, encompassing transportation tickets, accommodations, and travel packages.

Thus, what is regulated is the buying and selling of the goods, not the transportation service itself.

— Budi SantosoClarifying the scope of the new regulation for ride-hailing platforms.

This regulatory expansion aims to provide legal certainty for businesses operating in the dynamic digital market. The revision is built upon five core pillars: enhancing the visibility of local products, simplifying legal compliance for businesses, ensuring transparency in platform partnerships, strengthening consumer protection, and improving the governance of digital technology.

Santoso emphasized that the updated framework seeks to foster a fair and beneficial digital trading ecosystem, adapting to rapid technological advancements. The policy will prioritize local micro and small businesses, mandate business permits for all digital merchants, and ensure transparency in platform fees and promotional policies. It also establishes mechanisms for complaints and dispute resolution, regulates AI in marketing, and protects against unfair trading practices. The minister stressed that mandatory licensing is crucial for a more orderly marketplace and unlocks access to government support for small and medium enterprises.

Of course, this is carried out with attention to dynamic technological advancements.

— Budi SantosoDescribing the approach to revising the e-commerce regulations.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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