Indonesia proposes to control administrative costs of e-commerce platforms

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The Ministry of Micro, Small and Medium-sized Enterprises (UMKM Ministry) is studying the regulation of administrative costs of e-commerce platforms, for which no specific rules have been issued by the Ministry of Communications and Digital Affairs or the Ministry of Trade, with a view to ensuring that the policy does not increase the burden on UMKMs (especially online sellers). The Deputy Minister said that the Minister had asked him to draft the relevant ministerial regulation, which was currently in the research phase. The fee increases are presumably known, but need to be assessed to see if they affect UMKM's profits.

The Government willDirect investigation of sellersand jointlyInternet Marketing Associationand other partners to gather inputs.Focus on the impact of price increases on profits(especially in the midst of intense price competition). The context isTwo major platforms, Shopee and Tokopedia, have increased commissions in 2024: Tokopedia has adjusted its service fees, effective September 16th.Power Merchant and Pro versions receive 1%-10% by product category.; Shopee is interested inNon-starred sellers (more than 50 orders completed) are charged an administrative feeThe

furthermoreUMKM ministry is pushing ahead with plans to replace imports with local products: Has been in contact withMarketplace merchants and brands will be present, with nearly 500 merchants ready to participate; although faced withChallenges of harmonizing the interests of merchants and producersbut emphasizes the need toEstablishment of mutually beneficial business models.. Earlier, the minister said that 1,300 local brands have been united to deal with the onslaught of second-hand imports, pushing second-hand sellers to switch to local manufacturing.

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