Corporate & Investment
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Ministry of Trade Regulation Update (Kemendag)
Ministry of Trade Strengthens E-Commerce Import Surveillance & Marketplace Fair Competition Rules
Kemendag Perketat Pengawasan Impor Barang E-Commerce & Persaingan Usaha di Pasar Digital
Executive Legal Takeaway
Updated trade rules enforce a minimum USD 100 FOB threshold on direct cross-border consumer purchases on digital platforms and require foreign merchant verification through domestic representative offices.
The Ministry of Trade has issued comprehensive enforcement guidelines regarding Permendag No. 31/2023 on the licensing, advertising, guidance, and supervision of business operators in Electronic Commerce (PPMSE).
Key Compliance Elements:
1. **Positive List & Cross-Border Threshold:** Cross-border marketplaces cannot facilitate direct direct-to-consumer imports for goods valued under FOB USD 100, except for specified goods explicitly listed in the national positive list (buku, software berlisensi, dan produk kreatif tertentu).
2. **Prohibition of Algorithmic Self-Preferencing:** E-commerce platforms that produce or distribute proprietary in-house private-label goods are prohibited from utilizing manipulative search algorithms that discriminate against independent third-party local merchants.
3. **Domestic Legal Representative (KPPA PPMSE):** Foreign merchants conducting more than 1,000 transactions per year or serving over 1,000 Indonesian consumers must establish a formal Foreign Trade Representative Office (KPPA PPMSE) within 14 working days of reaching the threshold.
Business Utility Advice:
Cross-border merchants and e-commerce platforms must review product catalogs, customs documentation pipelines, and algorithmic ranking compliance to avoid administrative sanctions and domain blocking.
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