Indonesia has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.

Indonesia has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.

Indonesia has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.

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.

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).

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.

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).

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

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.

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.

Government Regulation No. 46/2021, which replaces Government Regulation No.52/2000, stipulates that a certificate of approval is required for IT and telecommunication equipment to be sold or imported into the Indonesian market. The certificate of approval is issued by the Directorate General of Resources and Equipment for Post and Information Technology (SDPPI). The SDPPI Kepdiejen Postel No. 3/2020 allows third-party certification from Conformity Assessment Bodies (CABs) from a number of countries.
In-country testing at an SDPPI laboratory of two randomly selected equipment samples is required for radio frequency and telecommunications equipment before the SDPPI issuance of the certificate SDPPI Decision No. 36 issued in January 2020 includes a list of the 150 international test labs that it recognises.

The Government Regulation (GR) No. 28 of 2021 on the Implementation of the Industrial Sector includes requirements governing conformity assessment to Indonesian national standards (“SNI”) for a wide variety of consumer goods, including electronics. It has been reported that testing laboratories and conformity assessment bodies have been told to halt certification until the Minister of Industry issues implementing guidance for GR 28/2021. This standstill has resulted in the halting of imports that use the SNI scheme, which requires testing per shipment. Additionally, GR 28/2021 requires that all steps of product testing be conducted by an Indonesian national residing in Indonesia, further complicating product sample collection amid ongoing travel restrictions.

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.

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.

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.