New E-Commerce Regulation in Indonesia: Understanding Permendag No. 19 of 2026
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July 8, 2026by Legal CPT Corporate

New E-Commerce Regulation in Indonesia: Understanding Permendag No. 19 of 2026

The Indonesian government has officially introduced Minister of Trade Regulation (Permendag) No. 19 of 2026 on Electronic Commerce (Perdagangan Melalui Sistem Elektronik/PMSE), replacing the previous Permendag No. 31 of 2023.

Although regulatory updates may not seem particularly relevant at first, this new regulation brings important changes for businesses operating in the digital marketplace. Whether you sell through marketplaces, social commerce platforms, your own e-commerce website, or other online channels, these new rules may affect the way you run your business.

From the requirement to obtain a Business Identification Number (NIB) and stricter seller verification to greater platform transparency and the regulation of artificial intelligence (AI), Permendag No. 19 of 2026 introduces a number of significant changes that every online business should understand. If you currently run an online business or are planning to start one, becoming familiar with these regulations will help you stay compliant and build a stronger business in Indonesia's growing digital economy.

What Is Permendag No. 19 of 2026?

Permendag No. 19 of 2026 is Indonesia's latest regulation governing Electronic Commerce (PMSE). In simple terms, PMSE refers to buying and selling goods or services through the internet or digital platforms.

This includes businesses that:

  • Sell products through Shopee or Tokopedia
  • Use TikTok Shop or other social commerce platforms
  • Operate their own e-commerce websites
  • Offer services through digital platforms
  • Sell products through mobile applications

As Indonesia's digital economy continues to expand, the government has introduced this regulation to create a more comprehensive legal framework that promotes fair business practices while providing stronger protection for consumers.

Why Was This Regulation Introduced?

Indonesia has experienced rapid growth in online businesses over the past few years. Today, almost anyone can launch an online store within minutes. While this creates tremendous opportunities for entrepreneurs, it also brings new challenges, including:

  • Businesses operating without proper legal registration
  • Products that do not meet applicable standards
  • Unfair competition among sellers
  • Limited transparency from digital platforms
  • The growing risk of misuse of emerging technologies such as artificial intelligence

Through Permendag No. 19 of 2026, the government aims to create a healthier, fairer, and more sustainable digital commerce ecosystem for businesses and consumers alike.

Marketplace and Social Commerce Sellers Must Have an NIB

One of the most notable changes introduced by the regulation is the requirement for online sellers to obtain a Business Identification Number (Nomor Induk Berusaha/NIB). Many online businesses still operate without formal business registration. However, as businesses grow, legal compliance becomes increasingly important.

Under Permendag No. 19 of 2026, businesses conducting commercial activities through electronic systems are required to obtain the appropriate business licenses under Indonesian law. For most MSMEs and online entrepreneurs, this means obtaining an NIB.

Why Is an NIB Important?

An NIB serves as your business's official legal identity.

Having an NIB can help your business:

  • Register and collaborate with marketplaces
  • Apply for additional business licenses and certifications
  • Access business financing
  • Participate in government procurement opportunities
  • Build partnerships with larger companies

Most importantly, it confirms that your business is officially registered and recognized by the Indonesian government.

Marketplaces Will Strengthen Seller Verification

Registering as a marketplace seller has traditionally been a relatively simple process. Under the new regulation, however, marketplaces are expected to conduct more thorough verification of sellers' legal status.

The purpose is not to create unnecessary barriers for MSMEs, but rather to establish a safer and more reliable marketplace for consumers.

When sellers have verified business identities, consumers can shop with greater confidence, and compliant businesses can compete in a fairer environment.

Social Commerce Is Now Officially Regulated

Many businesses today rely not only on online marketplaces but also on social media platforms to sell their products.

Recognizing this shift, Permendag No. 19 of 2026 officially includes social commerce within the scope of Indonesia's electronic commerce regulations.

Businesses that sell through social media commerce features must now ensure they comply with the applicable legal requirements. Companies that depend heavily on social commerce should pay close attention to these regulatory developments.

Greater Transparency in Marketplace Fees

One of the most common concerns among online sellers has been the lack of transparency regarding marketplace fees.

Under Permendag No. 19 of 2026, marketplace operators are encouraged to provide clearer and more transparent information about the fees charged to merchants.

This enables sellers to better understand their operating costs and make more informed decisions when choosing the platforms they use.

Artificial Intelligence in E-Commerce

Artificial intelligence has become an increasingly important tool for online businesses. Many companies now use AI to:

  • Generate product descriptions
  • Create promotional images
  • Respond to customer inquiries
  • Analyze customer behavior
  • Recommend products

While the government recognizes AI as a valuable technology that supports business innovation, it also acknowledges the need to regulate its use to protect consumers. For this reason, Permendag No. 19 of 2026 introduces provisions addressing the use of AI in digital commerce.

Consumer Protection Takes Center Stage

In addition to regulating businesses, the new regulation places a strong emphasis on consumer protection.

Consumers should have access to:

  • Clear and accurate product information
  • Verifiable seller identities
  • Secure transaction processes
  • Effective complaint-handling mechanisms

Strengthening consumer protection is expected to increase public trust in Indonesia's digital marketplace.

Government Monitoring of Online Businesses Will Become More Comprehensive

Permendag No. 19 of 2026 reflects the government's stronger commitment to supervising digital commerce activities. This oversight extends beyond major marketplace platforms and also applies to businesses conducting commercial activities through various digital channels.

As regulations become more comprehensive, obtaining proper business licenses from the beginning is becoming an increasingly important investment for long-term business success.

What Should You Do?

If you operate an online business through marketplaces or social commerce platforms, there are several steps you should start taking to prepare for these regulatory changes. With the implementation of Permendag No. 19 of 2026, maintaining legal compliance has become more important than ever.

Make Sure You Have an NIB

The first step is to confirm whether your business already has a valid Business Identification Number (NIB). Your NIB serves as your business's official identity, so it is important to ensure that the registered information accurately reflects your current business activities. If you do not yet have an NIB, it is advisable to obtain one as soon as possible. If you already have one, review your business information regularly and update it whenever necessary.

Ensure Your KBLI Matches Your Business Activities

Your KBLI (Indonesian Standard Industrial Classification) should accurately reflect the activities your business currently performs. As businesses grow, many expand beyond basic online selling into areas such as live commerce, affiliate marketing, or developing their own brands. Whenever your business activities change, your registered KBLI should also be updated to remain compliant.

Obtain Any Additional Licenses Required

Depending on the products or services you offer, your business may require additional permits or certifications.

This commonly applies to businesses involved in:

  • Food and beverages
  • Cosmetics
  • Health products
  • Products subject to specific regulatory standards

Obtaining the necessary licenses helps ensure your business operates legally and meets all applicable requirements.

Keep Up with Regulatory Developments

Indonesia's digital commerce regulations continue to evolve alongside advances in technology. Businesses should stay informed about new e-commerce regulations, monitor updates from the marketplaces they use, and adjust their operations whenever new compliance requirements are introduced.

Conclusion

Permendag No. 19 of 2026 marks an important step in the development of Indonesia's digital commerce landscape. The regulation confirms that online businesses including marketplace sellers, social commerce merchants, and other digital entrepreneurs must obtain a Business Identification Number (NIB) as part of their business licensing requirements. It also strengthens oversight of digital marketplaces, social commerce platforms, and the use of emerging technologies in online trade.

Going forward, businesses are expected not only to focus on growing sales but also to ensure they operate in full compliance with Indonesian regulations. Obtaining an NIB and maintaining proper business licenses is no longer simply an administrative requirement; it is a key foundation for building a professional, trustworthy, and sustainable business in Indonesia's increasingly competitive digital economy.

If you have not yet obtained an NIB or are unsure how to begin, CPT Corporate is here to help. Our team can assist with NIB registration through the OSS system, company incorporation (PT and PT Perorangan), KBLI updates, and a wide range of other business licensing services, making it easier for your business to operate legally and confidently in Indonesia.

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