E-Commerce Gains Ground, IBC Pushes Rules to Protect MSMEs and National Data

Indonesia’s e-commerce sector has become a major driver of the digital economy. Across ASEAN-10, it generated around US$151 billion in gross merchandise value in 2025. In Indonesia, the digital economy reached about US$100 billion, with e-commerce contributing US$71 billion and projected to grow to US$140 billion by 2030, according to Google, Temasek, and Bain & Company.

The Indonesian Business Council (IBC) views this growth as a sign that e-commerce is no longer merely a retail channel. It has become part of Indonesia’s economic infrastructure, shaping how businesses access consumers, how products gain visibility, and how value is created in the digital economy.

The issue has gained urgency after the Trade Ministry announced plans to revise Minister Regulation No. 31/2023 on electronic commerce, following concerns from MSME groups and e-commerce associations over rising platform fees. For IBC, the debate should not stop at whether fees are too high, but should examine how digital platforms increasingly determine market access, product visibility, commissions, logistics, advertising costs, and vendor participation.

Research & Program Analyst IBC Bima Nur M.R. said Indonesia needs to look at e-commerce through the lens of digital sovereignty. “The question is not merely about the survival of local industries and MSMEs, but whether the competition is fair and the playing field is level,” he said.

IBC noted that online platforms now influence visibility, search ranking, advertising placement, logistics arrangements, commissions, and even vendor suspension. Without sufficient transparency and appeal mechanisms, small businesses compete on an unlevel playing field.

Bima added that digital sovereignty should not be interpreted as market control, which could limit innovation. Instead, it should ensure that platforms operating in Indonesia are governed by fair competition, consumer protection, data accountability, and national economic interests. “E-commerce should be understood as a national economic infrastructure. When millions of merchants depend on digital platforms to reach consumers, platform governance becomes a matter of public importance,” Bima said.

IBC encouraged the government to use the regulatory revision to build a transparent, certain, and fair environment for Indonesia’s online marketplace, while keeping the sector open to innovation and investment.