The Indonesian government has officially intervened to temporarily halt service fee hikes on e-commerce platforms. Minister of MSMEs, Maman Abdurrahman, announced the decision as a direct response to various marketplaces planning imminent increases in merchant fees, emphasizing the need to protect the stability of small and medium-sized enterprises.
Maman revealed that he had previously convened with major marketplace executives to reach a formal agreement. During these discussions, all parties committed to maintaining existing fee structures until a new set of formal government regulations is established. The Minister issued a stern warning, stating that the government will take firm action against any platform that attempts to implement new fees or raises existing ones during this interim period.
“We have already summoned all marketplace companies and clearly communicated that no fee increases are permitted for the time being. That directive is absolute,” Maman stated on Friday, May 15. He further elaborated that marketplace platforms often operate under long-term annual contracts with MSMEs, which should preclude arbitrary pricing changes. The government intends to enforce these contractual obligations, warning that any platform defying the post-meeting moratorium will face strict consequences.
Recent complaints from sellers regarding escalating service costs have brought this issue to the forefront. TikTok Shop, in particular, sparked controversy after announcing a transition to a “Dynamic Commission Fee” model. Under this new policy, the maximum seller commission per item is set to rise significantly, jumping from IDR 40,000 to as much as IDR 650,000, effective May 18, 2026. Furthermore, the platform has introduced additional charges for failed deliveries and returns, with sellers potentially facing fees of up to IDR 5,000 for returns initiated by buyer preference.
Addressing these concerns, Minister Maman reiterated that the government’s priority is to provide a secure environment, protect the interests of local businesses, and boost the overall competitiveness of MSMEs operating in the digital marketplace. Currently, the Ministry of MSMEs is working alongside relevant government agencies to synchronize policies and develop a comprehensive legal framework. This initiative aims to establish a fair regulatory balance that protects small business owners while providing clear operational guidelines for e-commerce service providers.
Summary
The Indonesian government has officially intervened to temporarily halt service fee increases on e-commerce platforms to protect the stability of small and medium-sized enterprises (MSMEs). Minister of MSMEs, Maman Abdurrahman, reached a formal agreement with major marketplace executives to maintain existing fee structures until new government regulations are finalized. The government has issued a stern warning that any platform attempting to raise fees during this moratorium will face strict consequences.
This decision follows rising concerns from sellers regarding significant commission hikes and additional charges, notably prompted by policy changes at platforms like TikTok Shop. The Ministry of MSMEs is currently collaborating with relevant agencies to develop a comprehensive legal framework. This initiative aims to ensure a fair regulatory balance that secures the operational environment for local businesses and provides clear guidelines for digital service providers.