JAKARTA: The government’s plan to bring ride-hailing players, like Grab and Gojek, under the same regulatory umbrella as online marketplaces is prompting pushback from industry groups, which warn that the two sectors operate under different business models.
They cautioned that one-size-fits-all rules could add regulatory uncertainty and weigh on the profitability of industry players.
According to a draft, the Trade Ministry plans to expand the definition of trade conducted through electronic systems under Trade Minister Regulation No. 31/2023 on electronic commerce to include ride-hailing services and online travel agencies (OTAs).
The new regulation aims to tighten transparency rules for online marketplaces and merchants, including platform fee disclosures, product origin labelling, the use of artificial intelligence and obligations related to promotional discounts for micro, small and medium enterprises (MSMEs), according to the document.
It would require platforms to prioritise domestic products in search and recommendation algorithms and dedicate homepage space exclusively for domestic goods.
It would also bar platforms from favouring their own affiliated payment or logistics services.
Trade Ministry domestic trade director general Iqbal Shoffan Shofwan said that the revised regulation will expand the definition of domestic electronic trading operators to cover eight business models.
Trade Minister Regulation No. 31/2023 recognises six business models for online commerce, which include online retail, marketplaces, classifieds, price comparison platforms and daily deals, with social commerce added in 2023.
“The ministry aims to release the revised regulation as soon as possible,” he added.
Trade Minister Budi Santoso said earlier this month the revision is intended to strengthen protections for local products and MSMEs, while improving safeguards for consumers and other stakeholders across the digital commerce ecosystem.
Yongky Susilo, an expert board member at the Indonesian Employers Association, supported tighter oversight of online commerce to align it more closely with brick-and-mortar rules.
However, he opposed the inclusion of ride-hailing in the same regulatory track, saying the business models differ fundamentally and require separate treatment.
Policymakers should take a long-term view of digital trade over the next 20 years, he said, rather than focus on current structures, as the sector continues to evolve.
“What the government must solve today is curbing predatory pricing and improving algorithm transparency to ensure fair treatment of local businesses,” he said.
He added that foreign players currently tend to receive preferential treatment in the market.
Budi Primawan, secretary general of the Indonesian eCommerce Association, also said that while ride-hailing and OTA are part of the broader digital commerce ecosystem, their service models differ significantly from traditional marketplaces.
He warned that implementation of the regulation should be proportionate and risk-based, as these platforms have different cost structures, subsidy models and user behaviour.
He also warned that a sweeping regulatory approach could create unintended distortions.
“There may be areas where similar governance principles apply, but implementation and operational obligations still need to reflect the characteristics and realities of each sector,” Budi said.
The revision comes amid mounting complaints from merchants about rising, opaque platform charges, with smaller sellers saying higher fees are squeezing margins amid weakening consumer demand.
It also follows a series of tighter digital regulations in South-East Asia’s largest economy, including plans to bar children under 16 from accessing eCommerce, and financial and technology platforms under new child protection rules.
The government is also mandating lower commissions for ride-hailing platforms, cutting the maximum platform fee from 20% to 8%, a move that could boost driver earnings but weigh on platform profitability. It is unclear whether the same scheme would also apply to online commerce and OTAs.
Devi Ariyani, executive director of the Indonesian Services Dialogue Council, also said that marketplace regulations “may not be fully applicable” to ride-hailing and OTA, whose operating structures differ significantly from marketplaces, which are built around physical goods. — The Jakarta Post/ANN
