Author: Bima Nur M.R., Indonesian Business Council
8 July 2026
From personal care to professional supplies, from groceries to electric vehicles, almost everything can now be bought through apps, websites and social media channels. E-commerce has moved from a convenient alternative to a central channel of modern consumption.
Purchases that once required a trip to the store can now be completed in minutes. In ASEAN-10, e-commerce became the largest contributor to the digital economy in 2025, generating around US$185 billion in Gross Merchandise Value and $41 billion in revenue.
In Indonesia, e-commerce deepened its reach during the COVID-19 pandemic, when mobility restrictions pushed more firms, customers and products into the online marketplace. A World Bank survey in 2021 found that e-commerce contributed to micro, small and medium enterprise resilience and supported faster recovery.
The same system that expands market access also creates new forms of dependency. Online platforms allow merchants to reach wider markets, while creating new layers of cost and control. Fees, commissions, advertising requirements, logistics arrangements and platform-driven promotions can directly affect margins. When these rules change, merchants often have limited room to respond. This is where the promise of digital access meets the reality of platform power.
The government appears to recognize the seriousness of the issue. Trade Minister Budi Santoso has announced plans to revise Trade Minister Regulation No. 31/2023 on electronic commerce (PMSE). The MSMEs Ministry, led by Maman Abdurrahman, has also responded strongly to rising platform fees.
These reactions suggest that the debate is moving beyond individual business complaints toward a broader question of how Indonesia’s digital marketplace should be governed. When fees, algorithms and platform rules can shape whether local brands grow or struggle, e-commerce starts to function as economic infrastructure, with consequences for competition, MSMEs and national economic sovereignty.
Indonesia’s e-commerce sector is no longer a small part of the economy. A joint report by Google, Temasek and Bain & Company estimated that Indonesia’s digital economy reached around $100 billion in gross merchandise value in 2025, with e-commerce contributing $71 billion. By 2030, the sector is projected to reach around $140 billion. This growth has opened new opportunities for MSMEs and local industries to reach consumers beyond their immediate geography. Research by Wanmin Ni in 2022 also suggests that e-commerce can encourage entrepreneurship and innovation.
This growth, however, comes with consequences. E-commerce has evolved beyond a simple trading platform. It increasingly shapes the conditions under which market participants compete. Algorithms influence who gains visibility, which products are discovered and which sellers are rewarded. Sudden policy changes, from commission hikes to vendor suspensions, can also destabilize businesses without sufficient transparency or accessible appeal mechanisms.
This matters because platforms are becoming essential to modern socioeconomic life, while their governance remains largely in private hands. Given that nine of the ten largest consumer platforms in Indonesia are dominated by foreign players, many rules influencing domestic commerce, labor and even cultural discourse are increasingly set beyond Indonesia’s borders. Governments carefully plan physical infrastructure such as ports, roads and power plants, yet digital marketplaces are still often treated as ordinary apps.
This is why e-commerce should be understood as national economic infrastructure. When millions of merchants depend on digital marketplaces to reach consumers, when algorithms shape market access and when platform rules affect prices, jobs and business survival, e-commerce becomes part of the country’s strategic economic system. For Indonesia, e-commerce has become a matter of national sovereignty.
Dani Rodrik, a professor at Harvard University, argues that the state and the market should be seen as complementary forces. In physical infrastructure, governments set rules to protect public safety, ensure fair access and maintain economic stability. The same logic should guide how Indonesia governs e-commerce.
Other economies already show how digital platforms and strategic technologies are becoming matters of public governance. Through the Digital Markets Act, the European Union seeks to prevent large digital “gatekeepers” from abusing their position, including through self-preferencing and limited transparency over ranking, search and click data. The United States offers another lesson through its support for IBM in developing quantum computing, which shows how advanced technology is increasingly treated as a matter of national security and long-term competitiveness.
Managing digital platforms as national infrastructure could also bring significant economic value. Better governance can help capture gains in productivity, tax collection, innovation and public service delivery. Countries such as India, Singapore and China show how digital infrastructure, interoperability and inclusion can bring more people and businesses into the formal economy. With a coherent national strategy, Indonesia could use e-commerce governance to support a new wave of growth and innovation.
Indonesia has already begun to move in this direction. The government’s strong statements on rising platform fees, along with the plan to revise the ministerial regulation on electronic commerce, show that policymakers are paying closer attention to the issue.
This is an important start. The next step is to adopt a clearer mindset: e-commerce is no longer only a trade platform. It has become critical economic infrastructure, and its governance is now part of how Indonesia protects competition, supports domestic businesses and upholds national sovereignty.
This article is originally published at The JakartaPost
