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INDONESIA

Since March 2013, last amended in February 2021

Pillar Online sales and transactions  |  Indicator Maximum foreign equity share for investment in the e-commerce sector
Government Regulation No. 15/2013 (PP No. 15 Tahun 2013)
There is a limit of 49% on the shares that can be acquired by foreign investors in government-controlled firms. This includes foreign participation express delivery services SOEs sector as regulated in the Government Regulation No. 15/2013 as amended by the Government Regulation No. 46/2021.
Coverage Express delivery services in state-owned enterprises

INDONESIA

Since November 2019

Pillar Online sales and transactions  |  Indicator Licensing scheme for e-commerce providers
Government Regulation of the Republic of Indonesia No. 80 of 2019 on Trading Through Electronic Systems (Peraturan Pemerintah Republik Indonesia Nomor 80 Tahun 2019 Tentang Perdagangan Melalui Sistem Elektronik)
According to Government Regulation No. 80/2019 on Trading Through Electronic Systems, both domestic and foreign e-commerce business actors must obtain a business license to engage in e-commerce activities. However, intermediary service operators are exempt from this requirement if they are not direct beneficiaries of an e-commerce transaction or are not directly involved in an e-commerce contractual relationship with the parties involved. Business license applications can be submitted through the Electronic Integrated Business Licenses system (Perizinan Berusaha Integrasi Secara Elektronik) in accordance with prevailing laws and regulations.
Furthermore, the E-commerce Law stipulates a list of compliance requirements for both local and foreign e-commerce operators, including prioritising the use of an Indonesian domain name, using server equipment housed in a data centre, registering as an electronic system operator with the Ministry of Communication and Informatics, and submitting periodic data and/or information to the statistics bureau, with further provisions to be governed by the bureau.
Coverage Horizontal

INDONESIA

Since March 2016

Pillar Online sales and transactions  |  Indicator Restrictions on online payments
Ministry of Communication and Informatics Circular Letter No. 3/2016
The Ministry of Communications and Informatics issued Circular Letter No. 3/2016 on 31 March 2016, establishing the regulatory framework for the delivery of application and content services via the Internet, commonly referred to as Over the Top (OTT) Services. The Circular categorises OTT Services into two main types. The first, OTT Application Services, involves the use of internet protocol-based telecommunications networks to provide functions such as text messaging, voice and video calls, online chatting, financial transactions, data storage, gaming, social networking, and related services. The second, OTT Content Services, encompasses the provision of digital information in formats such as text, sound, images, animations, videos, music, films, and games, delivered via streaming or downloads over telecommunications networks.
Under Section 5, the Circular imposes specific obligations on OTT Service Providers, including the mandatory use of a domestic payment system (Indonesia’s National Payment Gateway) operated by a legal Indonesian entity, as well as the use of Indonesian Internet Protocol numbers (Sections 5.5.5 and 5.5.6).
Coverage Over-the-Top (OTT) services

INDONESIA

Since September 2023

Pillar Online sales and transactions  |  Indicator Restrictions on online payments
Regulation No. 31 of 2023 on Provisions on Business Licensing, Advertisement, Development and Supervision of Business Actors in Electronic Systems Trading (Peraturan Menteri Perdagangan Nomor 31 Tahun 2023 tentang Perizinan Berusaha, Periklanan, Pembinaan, dan Pengawasan Pelaku Usaha Dalam Perdagangan Melalui Sistem Elektronik)
Under Art. 21 of Regulation No. 31 of 2023, electronic system trading organisers operating under a social commerce model are expressly prohibited from facilitating payment transactions within their electronic systems. For the purposes of this Regulation, electronic system trading organisers are defined (in Art. 1(9)) as business actors that provide electronic communication facilities used to conduct trading transactions. This restriction has had direct implications for social media platforms such as TikTok, which was required to halt e-commerce transactions on its app in Indonesia by October 2023 in order to comply with the new regulatory framework.
Coverage Electronic system trading organisers

INDONESIA

Since September 2023, entry into force in November 2023, last amended in March 2025

Pillar Online sales and transactions  |  Indicator Threshold for ‘De Minimis’ rule
Regulation of the Minister of Finance No. 96 of 2023 on Customs, Excise and Tax Provisions on the Import and Export of Consigned Goods (Peraturan Menteri Keuangan Nomor 96 Tahun 2023 tentang Ketentuan Kepabeaan Cukai Dan Pajak Atas Impor Dan Ekspor Barang Kiriman)
Section 29 of the Regulation of the Minister of Finance No. 96 of 2023 stipulates that the de minimis threshold, defined as the minimum value of goods below which customs duties are not imposed, is set at USD 3. This figure is substantially lower than the USD 200 threshold recommended by the International Chamber of Commerce (ICC).
Coverage Horizontal

INDONESIA

Since June 2013

Pillar Online sales and transactions  |  Indicator Restrictions on domain names
Regulation No. 23 of 2013 on Domain Name Management (Peraturan Menteri Komunikasi dan Informatika Nomor 23 Tahun 2013 tentang Pengelolaan Nama Domain)
According to Regulation No. 23 of 2013 on Domain Name Management, websites are considered electronic systems, and as such, they need to get certified before registering for a domain name. Websites must also provide the identity of the party providing such an electronic system and information on the object of any transaction. It is reported that a local presence is required for domain name registration
Coverage Horizontal

INDONESIA

Since November 2019
Since October 2023

Pillar Online sales and transactions  |  Indicator Local presence requirements for digital services providers
Government Regulation of the Republic of Indonesia No. 80 of 2019 on Trading Through Electronic Systems (Peraturan Pemerintah Republik Indonesia Nomor 80 Tahun 2019 Tentang Perdagangan Melalui Sistem Elektronik)

Ministry of Trade (MOT) Regulation No. 31/2023 on Provisions on Business Licensing, Advertisement, Development, and Supervision of Business Actors in Electronic Systems Trading
The E-commerce law states that subject to certain thresholds, foreign business actors that actively conduct e-commerce activities with consumers in Indonesia are deemed as physically present in Indonesia and conducting fixed business activities in Indonesia. These thresholds include (i) number of transactions, (ii) transaction value, (iii) number of shipped packages, and/or (iv) volume of traffic or number of users. A foreign business actor that meets any of the thresholds must appoint an Indonesian representative who can act on its behalf.
Moreover, in May 2020, Indonesia issued Ministry of Trade (MOT) Regulation No. 50/2020, which required certain foreign e-commerce operators to establish a local representative office in Indonesia. However, this regulation has since been revoked by the MOT with the publication of Regulation No. 31/2023 on Provisions on Business Licensing, Advertisement, Development, and Supervision of Business Actors in Electronic Systems Trading. Under Regulation 50, foreign e-commerce operators were subject to Indonesian e-commerce regulations and had to establish a representative office in Indonesia if they fulfilled any of these criteria:
- They transact with at least 1,000 consumers in Indonesia annually.
- They annually deliver at least 1,000 packages to consumers in Indonesia.
In addition, regulation 31 has placed one more alternative criterion, namely, if traffic to the operator (presumably website/platform) constitutes at least 1% of total local internet traffic in Indonesia within a one-year period.
Coverage E-commerce

INDONESIA

Since October 2019
Since November 2020

Pillar Online sales and transactions  |  Indicator Local presence requirements for digital services providers
Government Regulation No. 71/2019 on the Provision of Electronic System and Transaction (Peraturan Pemerintah (PP) Nomor 71 Tahun 2019 Penyelenggaraan Sistem dan Transaksi Elektronik)

Indonesia Minister of Communication and Informatics Regulation No. 5/2020 (Peraturan Menteri Komunikasi dan Informatika Nomor 5 Tahun 2020 tentang Penyelenggara Sistem Elektronik Lingkup Privat)
According to the Minister of Communication and Informatics Regulation No. 5 of 2020 on Private Electronic System Operators, foreign Private Electronic System Operators (ESOs) are required to register their businesses with the relevant ministry through the online single submission system. ESOs should also appoint liaison officers, who have to be domiciled in Indonesia. The duty of the liaison officer is to facilitate any access request by government authorities and takedown requests. According to the regulation, ESOs are persons, business entities, or communities that operate an electronic system. ESOs include electronic system operators that are supervised by ministers or institutions in accordance with laws and regulations and electronic system operators that have an online portal, site, or application through the Internet. The requirement was first enacted with Government Regulation No. 71/2019 regarding the Provision of Electronic Systems and Transaction which repealed the Government Regulation No. 82 of 2012.
Coverage Electronic system operators

INDONESIA

Since November 2020
Since October 2019

Pillar Content access  |  Indicator Licensing schemes for digital services and applications
Indonesia Minister of Communication and Informatics Regulation No. 5/2020 (Peraturan Menteri Komunikasi dan Informatika Nomor 5 Tahun 2020 tentang Penyelenggara Sistem Elektronik Lingkup Privat)

Government Regulation No. 71/2019 on the Provision of Electronic System and Transaction (Peraturan Pemerintah (PP) Nomor 71 Tahun 2019 Penyelenggaraan Sistem dan Transaksi Elektronik)
According to the Minister of Communication and Informatics Regulation No. 5 of 2020 on Private Electronic System Operators, foreign Private Electronic System Operators (ESOs) are required to register their businesses with the relevant ministry through the online single submission system. ESOs should also appoint liaison officers, who have to be domiciled in Indonesia. The duty of the liaison officer is to facilitate any access request by government authorities and takedown requests. According to the regulation, ESOs are persons, business entities, or communities that operate an electronic system. ESOs include electronic system operators that are supervised by ministers or institutions in accordance with laws and regulations and electronic system operators that have an online portal, site, or application through the Internet. The requirement was first enacted with Government Regulation No. 71/2019 regarding the Provision of Electronic Systems and Transaction which repealed the Government Regulation No. 82 of 2012.
Coverage Electronic system operators

INDONESIA

Since March 2014, last amended in November 2020
Since August 2007, last amended in December 2022

Pillar Quantitative trade restrictions for ICT goods and online services  |  Indicator Other import restrictions, including non-transparent/discriminatory import procedures
Law of the Republic of Indonesia No. 7/2014 About Trade (Trade Act)

The Law of the Republic of Indonesia No. 40 of 2007 Concerning Limited Liability Company
Pursuant to Art. 24 of the Trade Act and Art. 5 of the Limited Liability Company Act, all exporters and importers are subject to a licence issued by the government, which is subject to a commercial presence requirement.
Coverage Horizontal

INDONESIA

Since 2021, last amended in 2022

Pillar Quantitative trade restrictions for ICT goods and online services  |  Indicator Other import restrictions, including non-transparent/discriminatory import procedures
Ministry of Trade Regulation (MOT) No. 20/2021
It is reported that according to the Ministry of Trade Regulation (MOT) 20/2021, which was amended by MOT Regulation 25/2022, pre-shipment verification by designated companies (known in Indonesia as “surveyors”) is required for a broad range of products, including electronics. It is reported that the verifications are conducted at the importer’s expense and impede the entry of imports to designated ports and airports. Despite reports about this regulation, the regulatory text could not be located online.
Coverage Several products, including electronics such as e.g. mobile phones

INDONESIA

Reported in 2022, last reported in 2025

Pillar Quantitative trade restrictions for ICT goods and online services  |  Indicator Other import restrictions, including non-transparent/discriminatory import procedures
Reported informal import limits
It is reported that foreign companies have indicated that, in certain cases, the Ministry of Industry (MOI) is informally limiting import quantities under existing licences (issued pursuant to MOI Regulation No. 38/2024, previously issued under MOI Regulation No. 108/2012) in order to protect domestically manufactured mobile phones, handheld computers, and tablets.
Coverage Mobile phones, handheld computers, and tablets

INDONESIA

Since January 2013
Since November 2016

Pillar Quantitative trade restrictions for ICT goods and online services  |  Indicator Other import restrictions, including non-transparent/discriminatory import procedures
Ministry of Trade Regulation No. 38/2013

Ministry of Industry Regulation No. 68/M-IND/PER/9/2016
The Ministry of Trade Regulation 38/2013 imposes requirements on importers of mobile phones, handheld computers, and tablets to prove previous import activities and local aftersales activity, as well as requirements regarding the distribution and the establishment of industrial activity in Indonesia. In addition, the Ministry of Industry Regulation 68/M-IND/PER/9/2016 includes new licensing requirements for different types of importers of tablets, cellular phones, and handheld computers. These differ depending on:
- whether the importer is working with an Indonesian producer,
- whether the importer is also the producer of the goods,
- whether the imports are conducted with a specific purpose (i.e., specialised orders) or concerning after-sales services.
Coverage Mobile phones, handheld computers and tablets

INDONESIA

Since 2021, last amended in 2022

Pillar Quantitative trade restrictions for ICT goods and online services  |  Indicator Other import restrictions, including non-transparent/discriminatory import procedures
Ministry of Trade Regulation (MOT) No. 20/2021
Indonesia has implemented stringent measures that affect the importation of cellular and Wi-Fi-equipped products. In support of its Commodity Balance policy, the Ministry of Trade (MOT) issued Regulation 20/2021 (amended by MOT Regulation 25/2022), which consolidated import regulations under a unified framework, including the revocation of MOT Regulation 82/2012. These regulations mandate that all import license applications be processed through the national single window system, maintaining rigorous import requirements. Importers must now be registered and demonstrate engagement with at least three distributors, as well as contribute to the domestic device industry or collaborate with local manufacturing, design, or research entities. Importation of 4G and beyond technology devices requires a producer's license (API-P), typically held by importers of unfinished goods, further restricting foreign producers' access to the Indonesian market. Additionally, importers must provide product identification numbers and a corresponding certificate from the Ministry of Communications and Information Technology (MCIT), leading to prolonged decision-making processes and industry uncertainty. Despite reports about this regulation, the regulatory text could not be located online.
Coverage Wide range of products, including electronics

INDONESIA

Since August 2020

Pillar Quantitative trade restrictions for ICT goods and online services  |  Indicator Other import restrictions, including non-transparent/discriminatory import procedures
Minister of Trade Regulation (MOT) No. 68/2020
Under MOT Regulation 68/2020, Indonesia requires import approvals and stringent reporting requirements for electronic devices (except such products imported for market testing or after-sales service purposes) with the stated goal of reducing the volume of consumer goods entering Indonesia in favour of local production.
Coverage Electronic devices

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