Regulation Watch · Business Licensing · Indonesia, including domestic PMSE and foreign online sellers or platforms serving Indonesian consumers.
Indonesia Rewrites E-Commerce Licensing and Cross-Border Platform Rules
Permendag 19/2026 requires online sellers and platforms to align NIB, sector licences, product standards, marketplace onboarding, cross-border sales, local representation, fee transparency, and AI use under a new PMSE framework.
- Published
- Established on 4 June and promulgated on 8 June 2026 in State Bulletin 2026 No. 367. The National Regulation Database refreshed the official record on 23 September 2026.
- Effective
- 8 June 2026, the date of promulgation.
- Added to Watch
- 24 September 2026
Who is affected
Indonesian and foreign online sellers, PT PMA and PT PMDN companies selling goods or services through websites, apps, marketplaces, social commerce or online travel agents, domestic and foreign PPMSE and intermediary-service providers, marketplace operators, directors, product owners, foreign digital platforms, KP3A PMSE representative offices, advertisers, and compliance, licensing, consumer-service and technology teams.
Practical impact
The regulation replaces Permendag 31/2023 and ties PMSE participation more directly to the seller's actual sector licences and product standards. Domestic marketplaces must reject unlicensed sellers unless they use the temporary 'Dalam Proses Legalisasi' route, which allows six months to obtain the required permits before transactions are stopped. A seller operating its own e-commerce site is treated as a PPMSE and needs PMSE business licensing through OSS. Foreign sellers face legalized corporate and product documents, Indonesian-language listings and origin disclosures. Qualifying foreign platforms must appoint a licensed KP3A PMSE representative, while cross-border platforms must generally enforce a USD 100 FOB minimum per imported finished-goods unit. The rule also regulates platform fees and contract changes, AI disclosures and governance, consumer complaints, product-standard data, social-commerce payments, and administrative enforcement.
Late discovery: Permendag 19/2026 was established on 4 June and promulgated on 8 June 2026 in State Bulletin 2026 No. 367. It took effect immediately and revoked Permendag 31/2023. The official national record was refreshed on 23 September, bringing the instrument into this Regulation Watch cycle.
The new framework applies to domestic and foreign sellers, PPMSE and intermediary-service providers. Every business must hold the trade and sector-specific licences required for its actual activity. A domestic seller using its own commercial website or app is treated as a PPMSE and must obtain PMSE business licensing through OSS. Marketplaces must reject unlicensed domestic sellers, but must also provide a temporary 'Dalam Proses Legalisasi' status. A seller using that route has six months from registration to become licensed before the platform must stop its transactions.
Existing sellers receive a longer transition: a seller already conducting PMSE through a PPMSE before 8 June 2026 has up to 18 months, ending 8 December 2027, to satisfy the licensing obligation. Previously issued licences remain valid if they have not expired or been revoked and are registered in OSS. Businesses should therefore align the NIB, KBLI, PMSE position, sector approvals and mandatory product standards rather than treating an NIB alone as complete compliance.
Foreign sellers registering on an Indonesian platform must provide identity and address information, legalized home-country business licensing, independent survey verification, required product-standard evidence, and a transaction bank account. Listings must use understandable Indonesian and disclose the seller's country and the shipment origin. The Indonesian platform must reject non-compliant foreign sellers and retain their registration data.
A foreign platform must appoint an Indonesian KP3A PMSE representative if it reaches at least 1,000 Indonesian consumers, sends at least 1,000 packages to Indonesian consumers in one year, or reaches traffic of at least 1% of Indonesian internet users in one year. The representative needs SIUP3A through OSS and may act for only one foreign platform. Cross-border platforms must also generally enforce a minimum FOB price of USD 100 per unit for finished goods sold directly from abroad, subject to goods specifically exempted by the Minister.
Operational controls extend beyond licensing. Platforms must make seller fees transparent, keep agreements downloadable, obtain consent to changes, and answer written seller objections within 14 working days; an unanswered objection is treated as administratively accepted for dispute purposes. Product listings must carry applicable SNI or technical-standard, halal, safety, health, environmental and regulated-product details. Social-commerce platforms cannot facilitate payments within the social-commerce system, and marketplaces or social-commerce operators cannot act as producers where prohibited by distribution law.
Businesses may use AI in PMSE, but remain responsible for it. AI-generated, displayed, recommended or promoted goods and services must be identified to consumers; information must be accurate and accountable; platforms need risk-proportionate governance and complaint or correction mechanisms; and use must protect consumers, other businesses, personal data and intellectual property. Enforcement can escalate from warnings to blacklisting, access restrictions, temporary service blocking and licence revocation, alongside sanctions under other applicable regimes.
Required action
- Map every online sales channel and classify the business as a seller, PPMSE or intermediary service; a company selling through its own commercial website or app should review whether it now needs PMSE business licensing in addition to its NIB and sector licences.
- Reconcile the NIB, KBLI, sector approvals, technical standards, SNI, halal and product-registration evidence with the actual goods or services offered online, and register any existing PMSE licence in OSS.
- For marketplace onboarding, provide the required permits immediately or track the six-month 'Dalam Proses Legalisasi' period from registration and complete licensing before the platform must stop transactions.
- For foreign sellers, prepare legalized home-country business documents, independent survey verification, applicable Indonesian or home-country product standards, halal evidence where mandatory, a transaction bank account, Indonesian-language descriptions, and country-of-origin and shipment disclosures.
- Foreign platforms should test the Indonesian-consumer, package and traffic thresholds, appoint a KP3A PMSE representative when any threshold is met, obtain SIUP3A through OSS, and replace a terminated representative within 14 calendar days.
- Platforms should update seller agreements, downloadable fee schedules, complaint workflows, product-standard fields, licence-status displays, data reporting, cross-border pricing controls, and the prohibition on in-platform payments for social commerce.
- Review AI-assisted listings, recommendations, promotions and customer services; label AI-generated or AI-presented content, validate accuracy, maintain proportionate internal governance and correction channels, and protect consumers, personal data and intellectual property.