A foreign-owned company can sell products online in Indonesia, but opening a marketplace account is only one part of the compliance picture.
Recent regulatory changes require marketplaces to verify sellers and introduce new rules for product listing, pricing, and taxation. PT PMAs that previously sold online may find their current marketplace setup no longer meets these updated requirements.
This guide explains how foreign-owned businesses in Indonesia, especially PT PMAs, can sell online under current e-commerce regulations, including marketplace verification, business licensing, and tax withholding. Different rules apply to foreign businesses selling directly into Indonesia without a local entity.
How Is Indonesia’s E-Commerce Ecosystem Regulated?
Indonesia’s e-commerce regulations define clear roles for sellers, digital platforms, and consumers. Permendag No. 19 of 2026 establishes requirements for businesses conducting trade through electronic systems (PMSE), from marketplaces and social commerce to ride-hailing and online travel agents.
The regulation draws a clear line between businesses based in Indonesia and those based overseas. If you operate a PT PMA, your company is considered a domestic business for compliance purposes, regardless of foreign ownership.
Marketplaces now carry more responsibility for verifying the businesses that sell on their platforms. This means PT PMAs that were already selling online under previous regulations may also need to review their licensing and marketplace information to stay aligned with current requirements.
| Durée | Définition |
|---|---|
| PMSE Perdagangan Melalui Sistem Elektronik |
Trading activities conducted through electronic systems, including the offering, sale, purchase, and related activities involving goods and/or services through electronic means. |
| PPMSE Penyelenggara Perdagangan Melalui Sistem Elektronik |
A business entity that provides electronic systems or facilities used to conduct PMSE activities, including platforms through which electronic commerce is carried out. |
What Verification Requirements Apply to PT PMA Sellers?
For a PT PMA, marketplace verification depends on the company’s business licensing and the products or services it sells. The PT PMA must have the appropriate licensing and use the relevant KBLI classification for its online activities.
The marketplace may require:
- A valid NIB (Nomor Induk Berusaha) and the relevant business licensing for the activities being carried out
- The appropriate KBLI classification based on the goods or services being sold
- Evidence of applicable product standards or technical requirements, where required
- Information needed to verify the seller through Indonesia’s OSS licensing system
Under Permendag No. 19 of 2026, PPMSE must reject domestic sellers without the required business licensing. The regulation requires licenses to include at least an NIB in the Trade sector and, where applicable, evidence of compliance with mandatory product or service standards. Sellers must use the appropriate KBLI classification for the goods or services they trade online.
ILA Global Consulting can review your PT PMA’s KBLI classification and business licensing structure to help determine whether they still align with the activities and products you sell online.
What Happens to Existing Marketplace Accounts?
PT PMAs registered before the new regulation may encounter issues if their accounts were opened under the previous framework, used outdated KBLI classifications, or lacked complete licensing or documentation. These accounts may now require review.
Permendag No. 19 of 2026 provides two relevant transition mechanisms:
- Up to 6 months: A seller registering without complete licensing may be listed under the temporary “Dalam Proses Legalisasi” (Under Legalization) status. The seller has up to six months from registration to complete the required licensing before the PPMSE must stop the seller’s transactions.
- 18 months: Sellers already conducting PMSE activities before the new regulation took effect have up to 18 months to meet the applicable business licensing requirements.
Existing PT PMAs should use this transition period to ensure their licensing, KBLI classification, and marketplace information accurately reflect current business activities, especially if product lines or the business model have changed.
| Durée | Définition |
|---|---|
| OSS Online Single Submission |
An electronically integrated business licensing system designed to facilitate the process of obtaining business licenses and completing related licensing requirements. |
| NIB Nomor Induk Berusaha/Business Identification Number |
A unique identification number issued through Indonesia’s OSS system to a business entity as part of its business registration and licensing process. |
| KBLI Klasifikasi Baku Lapangan Usaha Indonesia |
Indonesia’s classification of economic activities that produce outputs, whether goods or services, based on business fields. It provides standardized concepts, definitions, and classifications of business activities to reflect the development and shifts in Indonesia’s economic activities. |
What Product Origin Information Must Be Disclosed?
Product listings must clearly state the origin of the goods and, if applicable, the standards or certifications required for the product category.
Under Permendag No. 19 of 2026, sellers must provide information including:
- Whether the goods are produced in Indonesia or abroad
- Applicable product registration, SNI, or other technical standard numbers, where required
- Halal certification numbers, for products that are required to be halal-certified
- Product registration numbers related to safety, health, and environmental requirements, where applicable
- Registration, permit, or certification numbers for pharmaceutical and food products, where required
- The seller’s country of origin, where the seller is a foreign business
- The country from which the goods are shipped, where the goods are shipped from abroad
PPMSE must facilitate submitting and displaying this information on its platform. For a PT PMA selling products manufactured in Indonesia, the listing should identify the goods as domestically produced and include any applicable registration or certification information.
For a PT PMA importing finished goods for resale, the listing must show that the goods are produced abroad and, if applicable, identify the country from which they are shipped.
These requirements are separate from the pricing rules that apply to certain cross-border e-commerce transactions.
What Pricing Rules Apply to Cross-Border Goods?
Cross-border e-commerce sellers offering finished foreign goods directly to Indonesian consumers must generally apply a minimum FOB price of USD 100 per unit.
Goods priced below this threshold cannot be sold directly into Indonesia through regulated cross-border e-commerce channels unless the Minister exempts them.
This requirement is especially relevant to PT PMAs importing finished products, such as skincare, fashion accessories, and electronic components, for direct sale in Indonesia rather than local manufacturing or processing.
Product lines that were viable under previous regulations may now require changes to pricing or business models. Businesses may consider repricing, bundling, or relocating production or assembly to Indonesia.
| Durée | Définition |
|---|---|
| SNI Standar Nasional Indonesia/Indonesian National Standard |
The national standard established in Indonesia for goods, services, systems, processes, or other relevant subject matter, which may be voluntary or mandatory depending on the applicable regulation. |
| FOB Free on Board |
A trade term under which the seller’s delivery obligation is fulfilled when the goods are placed on board the vessel at the designated port of shipment, with the buyer assuming responsibility for the goods thereafter, subject to the applicable contractual terms. |
How Does the New PPh 22 Marketplace Tax Mechanism Work?
A separate Ministry of Finance regulation, PMK 37/2025, introduces a new mechanism for collecting income tax on marketplace sales. Under this mechanism, marketplaces act as withholding agents for PPh Pasal 22. The implementation of this mechanism has been postponed and is scheduled to begin on 1 November 2026.
The marketplace withholds 0.5% of the seller’s gross turnover, excluding VAT and luxury goods tax, when it pays the seller. It reports the withholding through transaction records, so sellers do not need to calculate or remit the amount themselves.
The withheld amount is typically credited against the seller’s annual tax return. For those under the UMKM final tax scheme, the withholding can be used to settle the 0.5% final tax obligation.
Individual taxpayers with annual turnover below IDR 500 million are exempt if they submit the required signed statement to the marketplace. This exemption applies only to individual taxpayers (Wajib Pajak Orang Pribadi), not to corporate entities.
A PT PMA selling through a marketplace should generally expect the 0.5% withholding to apply regardless of turnover, unless it holds a tax exemption certificate (SKB) from the tax office.
The withholding does not create an additional tax obligation but changes the timing and point of collection. Since tax is withheld before marketplace payouts, PT PMAs should factor this into their cash flow and reconcile it with their annual tax filing.
| Durée | Définition |
|---|---|
| Withholding Agent | A party appointed or required under tax regulations to withhold or collect tax from a payment and remit or report the withheld amount to the tax authority. |
| UMKM Usaha Mikro, Kecil, dan Menengah/Micro, Small, and Medium Enterprises |
Business activities classified as micro, small, or medium enterprises under the criteria established by Indonesian laws and regulations. |
| SKB Surat Keterangan Bebas/Tax Exemption Certificate |
A certificate issued by the Indonesian tax authority confirming that a taxpayer is exempt from a specified tax withholding or collection requirement, subject to the applicable conditions. |
How Can a PT PMA Stay Compliant When Selling Online?
A compliant e-commerce setup requires more than maintaining an active marketplace account. PT PMAs should regularly review whether their KBLI classification, business licensing, product documentation, origin disclosures, pricing, and tax treatment align with their actual online sales activities.
For broader PT PMA compliance, businesses should review recurring licensing and reporting obligations along with marketplace-specific requirements.
Not sure whether your PT PMA’s KBLI, NIB, product licensing, and marketplace setup are properly aligned? ILA Global Consulting can review your current structure, identify potential licensing, regulatory, or tax gaps, and help you address them before they affect your online business. Contact us to discuss how we can support your e-commerce compliance.
Questions fréquemment posées
The verification and product-origin disclosure requirements apply to PT PMAs selling online. However, the USD 100 FOB pricing requirement specifically concerns cross-border sales of finished foreign-origin goods. A PT PMA that manufactures its products in Indonesia is therefore in a different position from a PT PMA that imports and resells finished foreign-origin goods.
No. It is a new collection mechanism for an income tax obligation that already existed. The marketplace now withholds 0.5% of gross turnover at the point of payment rather than requiring the seller to calculate and remit the amount separately. The amount withheld can generally be credited against the seller’s tax liability.
No. The exemption applies to individual taxpayers (Wajib Pajak Orang Pribadi), not corporate entities. A PT PMA should generally expect the 0.5% withholding to apply regardless of turnover, unless it holds a separate tax exemption certificate (SKB).
Licensing already obtained under Permendag No. 31/2023 generally remains valid as long as it has not expired or been revoked and is registered in the OSS system. Sellers that were already conducting PMSE activities before Permendag No. 19 of 2026 took effect have an 18-month transition period to fulfill the applicable licensing requirements. The transition period concerns the licensing requirements. PT PMAs should separately review whether their product-origin information and, where applicable, cross-border pricing arrangements comply with the current regulation.
For finished foreign-origin goods sold directly into Indonesia through cross-border e-commerce, the USD 100 FOB minimum generally applies. Goods below this threshold may enter only through the regulated cross-border e-commerce channel, where they fall within an exception determined by the Minister.
