Indonesia is Southeast Asia's largest e-commerce market and is considered one of the fastest-growing digital economies. This appeal has pulled in both local business owners and foreign investors from across the border.
As a business in Indonesia, it is important that you remain compliant with regulations set by the Ministry of Trade. You need to adhere to business licensing requirements, KBLI classification, and tax compliance to operate legally in the country.
In this guide, we will discuss how to sell online in Indonesia for both local and cross-border sellers. We will cover key regulations, choosing the right structure, and using the correct KBLI classification.
Guidelines for Online Sellers and Platforms in Indonesia Under Permendag No. 19 of 2026
Permendag 19/2026 is the most significant update to Indonesia's e-commerce regulations since 2023. It replaces Permendag 31/2023 and expands the scope of what counts as e-commerce. It places new obligations directly on online selling platforms and, by extension, on the sellers using them.
Expanded Scope and Licensing Requirements
The regulation now covers eight business models, including:
- Ride-hailing platforms
- Online travel agents
- Online retail
- Classified ads
- Price comparison sites
- Daily deals
- Social commerce
- State-owned enterprises (BUMN and BUMD) a
To sell under this expanded scope, you must hold a valid NIB in the trade sector. You must show proof of compliance with applicable product standards before you can register on a platform. Sellers offering services must hold a competency certificate or be supported by certified technical staff.
Store labels like "official store" or "authorized seller" must also be backed by documentary evidence. Platforms are now required to actively verify them rather than taking seller claims at face value.
Existing sellers have 18 months to complete their licensing under the new rules, while new sellers get six months from the date of registration. During this window, platforms are required to display a Dalam Proses Legalisasi (in the process of legalization) label on the seller's storefront. If you miss the deadline, the platform will suspend your ability to trade/sell.
Domestic Product Priority and Origin Disclosure
This is a change that deserves close attention, particularly for anyone selling imported goods:
- Every PPMSE (e-commerce operator), PSP (intermediary service provider), and marketplace is now required to provide dedicated promotional space for domestically produced goods and services.
- Platforms must support the visibility of local products, especially those from micro and small enterprises. This can be through ranking, recommendation, and promotional features within the platform. Furthermore, they must give these local merchants clear information on how these features work.
- Merchants must clearly state whether goods are domestically produced or imported. This includes stating the merchant's country of origin, and the country from which goods are shipped. This closes a gap that previously let some cross-border sellers obscure the origin of their products.
Pricing, Competition, and AI Disclosure Rules
The regulation identifies specific practices as potential price manipulation. This can include sustained below-cost selling, repeated unreasonable subsidies, and open-ended discounts that distort the market. It can apply directly to flash sales, free-shipping subsidies, and platform-funded promotions. Suspected violations must be reported to Indonesia's Competition Commission (KPPU) within three business days.
The regulation also introduces Indonesia's first trade-level rule addressing AI in commerce. If your listings, pricing, or recommendations use AI in any way, you must disclose this to consumers and ensure the information presented is accurate and verifiable. More detailed national AI regulations are expected to follow.
Requirements for Selling Online as a Local Company
Because of origin disclosure outlined by Permendag 31/2023, the difference between local sellers and cross-border sellers are now clearly defined.
Local sellers are businesses registered and operating in Indonesia supplying goods locally. For example, a cosmetic brand from Bali is considered a local online seller whether they have an online shop on Shopee or Tokopedia, or sell through their own website.
As a local seller, you are required to have the following:
1. Register a Legal Entity and Obtain a Business License (NIB)
To sell as a registered business in Indonesia, you need a legal entity with a Business Identification Number (NIB) issued through the Online Single Submission (OSS) system. Most local founders register a standard PT (Perseroan Terbatas). However, you can also qualify as a very small operator or a PT Perorangan (individual company), which has lighter capital requirements.
Your NIB is tied to your KBLI code/s. Your business activity determines your licensing obligations, risk classification, and applicable sector permits. We will discuss this in detail below.
2. Choosing the Right KBLI Codes
If you run your own website or app and sell your own goods directly to consumers, you need two separate KBLI codes:
- KBLI 47901 (Digital Platform Retail Trade Intermediation) for managing the platform itself, meaning the website, app, or ordering system that facilitates the transaction.
- A KBLI code matching the type of goods you sell, such as apparel, cosmetics, electronics, or food products, etc.
This dual-code requirement applies whether you are an online business or an offline retailer expanding into e-commerce.
If you already run a physical store and want to add your own website as a sales channel, you are required to add KBLI 47901 to your business licensing alongside your existing retail KBLI.
You are required to have both KBLIs together since operating a digital ordering platform is treated as a distinct business activity from the underlying trade in goods.
On the other hand, sellers who only list products on third-party marketplaces (Shopee, Tokopedia, and similar platforms) without operating their own platform generally do not need KBLI 47901.
3. Register as a Merchant or Official Store on Marketplaces
Most local sellers start by listing on established marketplaces rather than building a standalone website. To register, you typically need:
- Company tax card (NPWP)
- Company deed (Akta Perusahaan)
- Business license (NIB)
- Domicile certificate
- An Indonesian bank account
Selling under a marketplace's "official store" status (Shopee Mall, Tokopedia's Official Store, and equivalents on other platforms) requires additional documentation to provide brand ownership. This includes proof such as trademark rights (HAKI) or a distributor appointment letter.
Official store status carries real commercial weight since it signals brand legitimacy to buyers and often comes with better placement and promotional access.
4. Handle Tax and Consumer Protection Obligations
Local sellers are subject to standard Indonesian corporate income tax rules, along with VAT collected on marketplace transactions. Government Regulation 80 of 2019 (PP 80/2019), also requires businesses to maintain proper consumer complaint handling procedures and comply with personal data protection standards.
Selling Online in Indonesia as a Cross-Border Seller
Cross-border sellers are merchants based outside Indonesia who want to sell into the Indonesian market. Operations can either be shipping goods directly from abroad to serve Indonesian buyers.
Foreign merchants face a more layered process, shaped by the restrictions introduced after the backlash against underpriced foreign goods on major marketplaces. Permendag 19/2026 also tightens these conditions even further.
The Priority of Local Sellers
Under Permendag 19/2026, Indonesia's regulatory direction favors domestic sellers and domestically produced goods. Platforms are now required to reserve promotional space and ranking visibility for local products. Combined with the minimum pricing floor and stricter origin disclosure, this means cross-border sellers are competing on a field that is deliberately tilted toward local merchants.
Restrictions That Apply to Foreign Cross-border Merchants
As a cross-border merchant, you need to work with the following restrictions imposed under Permendag 19/2026 and other regulations:
- Minimum pricing: Unless it appears on the government exception list, a floor of USD 100 (FOB) per unit applies to finished goods imported directly into Indonesia through cross-border e-commerce channels.
- Language requirements: Product descriptions must appear in simple, easily understood Indonesian.
- Product compliance: Goods must meet Indonesian standards and hold the relevant certifications, such as
- Origin disclosure: the country of origin, and now the country of shipment, must be clearly displayed on every listing.
- Identity and business verification: Foreign merchants must submit verified personal and business information, along with a properly legalized business license from their home country.
- Representative office triggers: Foreign e-commerce operators must set up a representative office in Indonesia if they exceed any of the following in a 12-month period:
- 1,000 transactions with Indonesian consumers
- 1,000 packages delivered to Indonesian consumers, or platform traffic equal to at least 1% of Indonesia's total local internet traffic.
Why a PT PMA Is the Recommended Structure
For cross-border sellers who intend to build their presence in Indonesia, setting up a PT PMA (foreign-owned limited liability company) is the recommended structure.
In a nutshell, a PT PMA allows you to:
- Obtain an Indonesian NIB, which is required for official store status on major marketplaces
- Open a local bank account for handling transactions in the market
- Negotiate directly with platforms, rather than operating through a third party
- Retain full ownership and control over your business, without relying on an intermediary's licenses
- Skip a separate representative office as you scale. A PT PMA already satisfies Indonesia's local presence requirement, so you won't need to set up an additional representative office later if your transaction volume grows past the thresholds described above.
To help you get started, Emerhub can help you navigate BPKM regulations and requirements with our company registration services. Not only do we help you with legal entity set up and registration, we can also help secure product licenses, certifications, and tax registration to legally go live on a marketplace.
Contact our local experts in Indonesia and share your plans to expand in the country with our free consultation.
Frequently asked questions
Do I need two separate KBLI codes if I only sell on Shopee or Tokopedia and don't run my own website?
If you sell exclusively through an existing marketplace, the marketplace operator holds KBLI 47901 for the platform itself. You only need the KBLI code matching the type of goods you sell.
What happens if I miss the licensing deadline under Permendag 19/2026?
Platforms are required to suspend your trading activity if you fail to complete your licensing within the applicable window, 18 months for existing sellers and six months for new sellers from the date of registration. Before the deadline, your storefront will carry a Dalam Proses Legalisasi label.
What is the minimum price for cross-border goods sold into Indonesia?
A floor of USD 100 (FOB) per unit applies to finished goods imported directly from abroad and sold through cross-border e-commerce channels unless it appears on a government exception list.
How does the domestic product priority rule affect sellers of imported goods?
Platforms are now required to reserve promotional space, ranking visibility, and recommendation features for domestically produced goods, particularly from micro and small enterprises. Sellers of imported goods will find it harder to secure the same organic visibility that domestic sellers now receive by regulation. This makes paid promotion and strong product differentiation more important.
Is KBLI 63122 still valid for a company registered before KBLI 2025 took effect?
Business licenses issued and verified before the KBLI 2025 transition remain valid, and there is no automatic cancellation. However, once the transition period ends, KBLI 63122 will no longer serve as a legal basis for new registrations or amendments. Any business relying on it should plan its reclassification to KBLI 47901 or another applicable code.