New trade rules bring ride-hailing, OTA firms into Indonesia's eCommerce framework

Indonesia is set to broaden the scope of its digital commerce regulation after trade minister Budi Santoso signed a revised regulation governing electronic commerce, bringing ride-hailing and online travel agency (OTA) platforms within the country's eCommerce framework for the first time.

The new regulation, which will replace Trade Ministry Regulation No. 31/2023 on electronic commerce (PMSE), reflects the government's latest effort to keep pace with the rapid evolution of Indonesia's digital economy and provide clearer legal certainty for businesses operating across increasingly integrated digital ecosystems.

Under the revised framework, ride-hailing superapps such as Grab and GoTo will be regulated only for the trading activities facilitated through commerce features within their applications. "What is being regulated is the buying and selling of goods, not transportation services," Santoso said.

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The regulation defines ride-hailing platforms as land transportation electronic systems that may also offer goods and services transactions as complementary features within a broader digital ecosystem.

Meanwhile, OTAs such as Traveloka will also fall under the PMSE framework. They are defined as electronic systems that facilitate the sale and booking of transportation tickets, accommodation, tourist attractions and travel packages, either directly or by connecting consumers with service providers.

According to Santoso, the inclusion of these business models reflects the increasingly diverse nature of Indonesia's digital economy.

"The addition of these two PPMSE business models in the revised regulation is a response to the dynamic development of the digital commerce landscape. With a more comprehensive business model scope, business actors will have legal certainty in conducting their business activities," he said.

Five areas of focus

The revised PMSE regulation centres on five key areas: improving the visibility of local products, facilitating business licensing, increasing transparency in digital platform partnerships, strengthening consumer protection, and enhancing governance of digital technologies.

Among the notable provisions are requirements for platforms to prioritise the visibility of products from micro and small enterprises as well as domestically produced goods, mandatory business licences for online merchants, greater transparency around platform fees and promotional policies, and the establishment of consumer complaint and dispute resolution mechanisms.

The government is also introducing rules governing the use of artificial intelligence in product promotion and marketing activities, while strengthening safeguards against unfair trade practices in digital channels.

"Refining PMSE regulation through this new ministerial regulation aims to strengthen a fair, healthy and beneficial digital commerce ecosystem. This is, of course, carried out while taking into account dynamic technological developments," Santoso said.

The regulation also requires all merchants selling through eCommerce platforms to hold business licences. To ease implementation, the government plans to provide a transition period that will allow businesses to comply gradually.

Industry welcomes direction but seeks implementation details

The Indonesian eCommerce association (idEA) broadly welcomed the policy direction, particularly its focus on supporting small businesses, consumer protection and regulatory certainty.

"Expanding the PMSE scope to business models such as ride-hailing and OTA also reflects the development of an increasingly diverse digital landscape that requires better regulatory certainty," idEA secretary-general Budi Primawan told Bisnis.

However, he cautioned that the success of the regulation would largely depend on implementation details.

Requirements surrounding business licensing, platform transparency, promotional incentives for MSMEs and AI governance still require clearer technical guidance, he said, adding that close collaboration between government, industry, academics and civil society would be necessary to avoid unintended barriers.

Regarding the impact on the broader digital economy, Primawan argued that regulations which improve legal certainty and consumer trust should ultimately support long-term ecosystem growth.

"Consumer protection is certainly important," he added.

On the business licensing requirement, he noted that obtaining a Business Identification Number (NIB) is not a new concept, but implementation would depend on how easy the process is, how long the transition period lasts, and what level of support is provided to MSMEs and first-time entrepreneurs.

Calls for broader digital economy legislation

Separately, Centre of Economic and Law Studies (Celios) digital economy director Nailul Huda said the inclusion of ride-hailing and OTA platforms is consistent with the nature of digital platform businesses, which operate as two-sided marketplaces connecting buyers and sellers.

He argued that eCommerce marketplaces, OTAs and ride-hailing platforms all share a similar intermediary function, facilitating transactions between different parties through a single platform.

"Unless the business model is that the OTA purchases the service [flight tickets/hotel vouchers] first and then resells it. That is called a middle-man. But if the OTA becomes a place for buying and selling, it still falls under eCommerce," Huda said.

He added that Indonesia's increasingly complex digital economy may ultimately require a dedicated Digital Economy Law, with sector-specific implementing regulations covering areas such as online commerce and ride-hailing.

Huda also suggested additional measures that could strengthen the framework, including mandatory country-of-origin labelling for products, clearer disclosure of halal and BPOM certifications, special taxes on imported products sold through eCommerce platforms, dedicated digital shelf space for local MSMEs, and tighter restrictions on discounts for imported goods.

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