The Minister of Trade has issued Minister of Trade Regulation Number 19 of 2026 on the Implementation of Trade Business Through Electronic Systems (“MOT Regulation 19/2026”), which came into effect on 8 June 2026. This regulation simultaneously revokes the Regulation of the Minister of Trade Number 31 of 2023, which previously governed the same sector.
MOT Regulation 19/2026 introduces a number of new provisions applicable to Electronic Trading Organizer (Penyelenggara Perdagangan Melalui Sistem Elektronik or “PPMSE”), including the expansion of the scope of regulated platforms, merchant fee transparency requirements, prioritization of Domestic Products (Produk Dalam Negeri or “PDN”), regulation of the use of Artificial Intelligence (“AI”), and licensing compliance mechanisms for business actors operating through digital platforms.
Expansion of the Scope of Regulated Platforms
One of the key changes introduced under MOT Regulation 19/2026 is the expansion of business models falling within the definition of PPMSE. While previous regulations primarily focused on marketplaces and certain electronic commerce models, Article 3 of MOT Regulation 19/2026 expressly extends its coverage to various forms of digital platforms, including ride-hailing services and Online Travel Agents (“OTA”).
As a result of this expanded scope, platform operators falling within the electronic commerce framework are required to comply with the obligations prescribed under MOT Regulation 19/2026 in accordance with the nature of their business activities.
Merchant Fee Transparency and Protection
MOT Regulation 19/2026 introduces requirements obligating platforms to transparently disclose all commercial fees imposed on merchants. Pursuant to Article 14 paragraph (1), such fees must be communicated in clear and understandable language and displayed in a transparent manner.
Furthermore, Article 14 paragraphs (2) and (3) require that any fees charged to merchants be set out in a written agreement and/or electronic contract that can be downloaded by the parties.
Where there are changes to fees, penalties, or other commercial terms, Article 14 paragraph (4) requires such changes to be communicated to merchants and incorporated into an updated written agreement or electronic contract.
In addition, merchants are granted the right to submit written objections to amendments relating to contractual terms, fees, penalties, or charges that were not previously agreed upon, as provided under Article 14 paragraph (5). PPMSE operators are required to respond to such objections within 14 (fourteen) working days pursuant to Article 14 paragraph (6). In the absence of a response within such period, the merchant’s objection may be processed in accordance with the mechanism stipulated under Article 14 paragraph (7).
Regulation of Merchant Labels on Platforms
MOT Regulation 19/2026 also regulates the use of labels or designations assigned by platforms to merchants. Pursuant to Article 16 paragraphs (1) and (2), marketplaces, daily deals platforms, ride-hailing platforms, and OTA may assign labels such as “official store,” “authorized store,” “flagship store,” or “premium store.”
However, where such labels imply an official relationship with a trademark owner, manufacturer, distributor, or authorized agent, Article 16 paragraph (3) requires the availability of information or supporting documentation evidencing such relationship.
In addition, Article 16 paragraphs (4) and (5) require platforms to implement adequate verification mechanisms, maintain records relating to merchant labeling, and ensure that displayed labels are accurate and do not mislead consumers.
Prioritization of Domestic Products in Search and Ranking Systems
MOT Regulation 19/2026 introduces provisions requiring the prioritization of Domestic Products within digital platform systems. Pursuant to Article 40 paragraph (3) letter a, marketplaces, online classified advertisements, daily deals platforms, social commerce platforms, ride-hailing platforms, and OTA are required to prioritize Domestic Products in product search, recommendation, and ranking systems.
This requirement includes positioning Domestic Products in locations that are more easily discoverable by users within the platform ecosystem.
In addition, Article 37 paragraphs (4) and (5) require platforms to provide promotional support to micro and small enterprises that possess a Business Identification Number (NIB) and market Domestic Products. Such support may take the form of promotional fee discounts, advertising fee discounts, or other incentives in accordance with the platform’s policies.
Platforms are also required to provide merchants with information regarding promotional features and product ranking systems, including notifications of any changes to such systems as stipulated under Article 40 paragraph (5). Furthermore, Article 40 paragraph (6) requires merchants’ prior consent before they are enrolled in certain promotional or marketing activities.
AI Labeling and Governance Requirements
For the first time, the use of AI in electronic commerce activities is specifically regulated under MOT Regulation 19/2026.
Pursuant to Article 47 paragraph (3), business actors remain responsible for the use of AI within PMSE activities and are required to provide information and/or labels to users whenever goods, services, information, recommendations, or promotions are generated, displayed, recommended, or promoted through AI technologies.
In addition to labeling obligations, Article 47 paragraph (3) requires PPMSE operators to implement AI governance measures proportionate to the level of risk associated with AI usage and to establish complaint-handling and correction mechanisms relating to services or information generated through such technologies.
Licensing Requirements and Transitional Period
MOT Regulation 19/2026 introduces a temporary registration mechanism for merchants that have not yet fulfilled applicable business licensing requirements at the time of registration on a platform.
Pursuant to Article 17 paragraph (3), such merchants may be assigned a status of “Under Legalization Process” (Dalam Proses Legalisasi). Merchants utilizing this status are required to satisfy the relevant licensing requirements within 6 (six) months from the date of registration as provided under Article 17 paragraph (4).
Failure to comply with such obligations within the prescribed period requires platforms, pursuant to Article 17 paragraph (5), to restrict merchant access, including suspension of electronic commerce transactions conducted through the platform.
Furthermore, Article 74 provides an 18 (eighteen)-month transitional period for business actors that had already been conducting PMSE activities prior to the enactment of MOT Regulation 19/2026 to fulfill applicable licensing requirements.
MOT Regulation 19/2026 introduces significant new requirements relating to merchant fee transparency, merchant labeling practices, prioritization of Domestic Products in search and ranking systems, the use of AI in electronic commerce activities, and licensing compliance mechanisms for business actors operating through digital platforms. These provisions have been effective since 8 June 2026 and form part of the compliance framework that must be observed by PPMSE operators in accordance with the scope of their business activities.
For legal consultation assistance or other legal services from SW Counselors at Law, please contact:
Fanny, S.H.
Senior Associate
T. (+6221) 2222-0200
Bella Siboro, S.H.
Associate
T. (+6221) 2222-0200
