Indonesia’s Ministry of Trade has enacted Regulation No. 31 of 2023 (MoTR 31/2023), superseding Regulation No. 50 of 2020. Effective 26 September 2023, this new regulation addresses business licensing, advertisement development, and supervision of business actors in electronic systems trading. MoTR 31/2023 significantly revises the landscape for social-commerce platforms. It introduces stringent restrictions for foreign merchants and e-commerce operators, focusing on enhancing the competitiveness of local merchants and manufacturers against imported products.
The regulation impacts local and foreign e-commerce operators, particularly on social-commerce platforms. MoTR 31/2023 aims to create a more level playing field for local merchants by restricting payment facilitation and imposing strict compliance and monitoring requirements. The regulation also seeks to control foreign e-commerce operators’ influence and curb direct competition from imported products.
MoTR 31/2023 marks a significant shift in Indonesia’s approach to e-commerce, particularly affecting social-commerce platforms and foreign e-commerce operators. While aiming to bolster local businesses, the regulation imposes stringent requirements and compliance burdens on e-commerce operators. It is crucial for all parties involved to understand and align with these new regulations to navigate the transformed e-commerce landscape effectively.
 Setyawati Fitrianggraeni holds the position of Managing Partner at Anggraeni and Partners in Indonesia. She also serves as an Assistant Professor at the Faculty of Law, University of Indonesia, and is currently pursuing a PhD at the World Maritime University in Malmo, Sweden. Sri Purnama, Junior Legal Research, and Jericho Xafier Ralf, Trainee Associate Analyst at Anggraeni and Partners co-author this article.
 The regulation defines local business actors as local merchants, trading organizers through electronic systems (Penyelenggara Perdagangan Millau Sistem Elektronik/PPMSE), and Intermediary Services (Penyelenggara Sarana Perantara) and foreign business actors as foreign merchant, foreign trading organizers through electronic systems, and foreign Intermediary Services.
 Article 4 of of MoTR 31/2023.
 Article 12 (1) and (2) of MoTR 31/2023.
 Article 13 of MoTR 31/2023.
 Article 18 of MoTR 31/2023.
 Article 19 of MoTR 31/2023.
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Anggraeni and Partners, an Indonesian law practice with a worldwide vision, provides comprehensive legal solutions using forward-thinking strategies. We help clients manage legal risk and resolve disputes on admiralty and maritime law, complicated energy and commercial issues, arbitration and litigation, tortious claims handling, and cyber tech law.
Junior Legal Research Analyst
Jericho Xafier Ralf