About Indonesia readies 50% e-commerce fee cut for local small sellers
Indonesia readies 50% e-commerce fee cut for local small sellers
7 October 2026: Indonesia's Ministry of Micro, Small and Medium Enterprises is preparing a 50 percent discount on e-commerce service fees for local micro and small businesses with annual turnover of up to Rp15 billion (about US$814,000). Deputy for Small Business Temmy Satya Permana told reporters in Jakarta on Wednesday that the programme should be running by the end of October 2026.
Not yet independently verified. We could not open the Ministry of MSMEs own announcement or the text of the regulation. Figures come from ANTARA and detikFinance reporting of ministry statements. We will update this when it can be confirmed, and remove this note.
The legal basis is Ministry of MSMEs Regulation No. 3 of 2026 on protecting micro and small businesses and improving their competitiveness in electronic commerce, which has been in force since 17 June. According to detikFinance's earlier report, the rule obliges e-commerce platform operators that are not themselves micro or small businesses to cut their service fees by at least half for verified micro and small sellers who sell only domestically made products. The same report says the ministry first aimed for 1 August and allowed a transition period of up to six months.
Permana said the minister has signed a decree that serves as the programme's legal basis and that the ministry's own system is being connected to SAPA UMKM, its registration portal. Sellers will register there. The ministry will run an initial data check, then pass the records to the e-commerce platforms for their own verification before the discount is applied. Around 42,000 local-product sellers have been identified so far, he said, but their data is still being processed.
The ministry has so far worked with several marketplaces to promote local products. Permana named TikTok Shop and Tokopedia as platforms it wants to bring in next, and said similar schemes could follow in other ministries and institutions. "We want to test the market first," he said. The official launch will take place with the Minister once the mechanism is ready.
For sellers, the practical step is to hold the documents that show they are a micro or small business and that their goods are made in Indonesia, since two layers of checking are planned. For platforms, the open questions are how the discount will be calculated against each fee component and who bears the cost, neither of which the ministry addressed on Wednesday.
The detikFinance report puts typical platform service fees at 10 to 18 percent of sales, so a halving would be material for sellers on thin margins.
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