Indonesia Introduces New Requirements For E-Commerce Companies

The Indonesian Minister of Trade ("MOT") has issued a regulation that seeks to clarify many of the issues associated with doing business in the country's booming e-commerce sector, while at the same time imposing new requirements on both foreign and domestic e-commerce companies selling goods and services in Indonesia through online platforms.

This new regulation is MOT Regulation No. 50 of 2020 regarding Provisions on Business Licensing, Advertising, Guidance and Supervision of Businesses Trading Trade through Electronic Systems ("MOT Reg. 50/2020"). It is an implementing regulation for Government Regulation No. 80 of 2019 regarding Trading through Electronic Systems ("GR 80/2019"). MOT Reg. 50/2020 was issued on May 19, 2020 and will take effect on November 19, 2020.