New Minister of Trade Regulation on Trade Through Electronic Systems
On June 4, 2026, the Minister of Trade (the “MOT”) enacted Regulation (Peraturan Menteri Perdagangan) No. 19 of 2026 on Trade Through Electronic Systems (“Regulation 19/2026”). Regulation 19/2026 came into effect as of June 8, 2026. Regulation 19/2026 replaces the MOT Regulation No. 31 of 2023 on Business Licensing, Advertisement, Development and Supervision of Entrepreneurs in Trade Through Electronic Systems (“Regulation 31/2023”).
Please find below the pertinent provisions of Regulation 19/2026.
♦ Additional Business Models
Regulation 19/2026 includes ride hailing and online travel agents business models of trade through electronic systems (or PMSE in Indonesian in short). Regulation 31/2023 did not have these business models.
♦ Assistance for Domestic Traders
An Operator of Trade Through Electronic Systems (or a PPMSE in Indonesian in short) must assist domestic traders in obtaining their business licenses by providing information about such business licenses and/or connecting the domestic traders to the website of the Online Single Submission (the “OSS”) Agency.
♦ Complaint Service and Dispute Resolutions with Traders
A PPMSE with the business models of marketplace, online line advertisements, daily deals, social-commerce, ride hailing, and online travel agents, must provide a complaint service and a dispute resolution mechanism with the traders.
♦ Operational Fees of PMSE; Transparency and Agreements
- Transparency
A PPMSE with the business models of marketplace, online line advertisements, daily deals, social-commerce, ride hailing, and online travel agents, must be transparent in informing the operational fees of the PMSE. The information must use simple language and easily visible display. - Written Agreements or Electronic Contracts
Such fees must be included in a written agreement or an electronic contract between the PPMSE and a trader. Such agreement or electronic contract must be downloadable by both parties. Any change to such agreement or electronic contract must be approved by the PPMSE and the trader in writing. - Objections By Traders
A trader may object to any amendment to the agreement or electronic contract which amendment is not agreed by the trader in advance. Also, a trader may object to any fees, penalties, and/or any other matter that is not agreed in advance by the trader.The relevant PPMSE must respond to any objection within 14 working days. If the PPMSE fails to do so, the objection is deemed accepted administratively by the PPMSE and may be used by the trader as a basis to initiate a dispute.
♦ Labels on Traders by PPMSEs
A PPMSE with the business models of marketplace, daily deals, ride hailing, and/or online travel agents, may provide labels or information on a trader to state the trader’s credibility or certain characteristics. The labels must be displayed clearly, accurately, and easily understandably by consumers.
Note that a trader is liable for all information it provides to a PPMSE which information becomes available the basis for the label made by the PPMSE.
♦ Elaboration on Price Manipulation
Regulation 19/2026 clarifies ‘price manipulation’ to cover: a sale price which is lower than a reasonable production price, subsidies that are unreasonable and repeated which cause price distortions, a promotional discount which causes a sale price which is lower than a reasonable production price, and any other practice that under the anti-monopoly laws and regulations.
♦ Use of Artificial Intelligence and Responsibility
An entrepreneur may use artificial intelligence (“AI”) in the PMSE. An entrepreneur that uses AI is responsible for such AI use in its PMSE. Such responsibility includes, among other things, the following:
- to inform consumers that the relevant goods and/or services is produced, displayed, recommended, or promoted using AI;
- to ensure that all information using AI is presented correctly, clearly, accurately, and accountable; and
- for a PPMSE, it must provide an internal guideline on the use of AI in proportion to the risk of the use of AI.
In using AI, an entrepreneur must comply with the anti-monopoly and fair competition laws and regulations and ensure that there is no action that damages a consumer or another entrepreneur.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) for further information on the above.
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