Jakarta. The government is finalizing regulations to provide a 50% reduction in e-commerce platform service fees for micro and small businesses selling domestically made products, a minister said Thursday.

Micro, Small, and Medium Enterprises Minister Maman Abdurrahman said the policy is nearing completion, with the government still working on technical integration with its business database and determining an implementation timeline.

“We are now at that stage. Several matters still need to be resolved regarding the timeline and system integration process,” Maman said.

He said the 50% reduction in e-commerce service fees is intended to support micro and small businesses by lowering the cost of selling domestic products through digital platforms and strengthening their competitiveness.

The program will be integrated with Sapa UMKM, a government database designed to provide accurate information on businesses eligible for the benefit.

Maman said the database would also allow the government to monitor the development of participating businesses and determine what forms of assistance and incentives would be most appropriate.

“The government has an interest in monitoring the development of every micro and small business selling through online platforms so that, going forward, we can provide appropriate incentives to support their growth on e-commerce platforms,” Maman said.

The planned fee reduction comes as the government has also delayed the implementation of a 0.5% e-commerce tax on businesses with annual gross sales exceeding Rp 500 million ($28,170). The measure, originally scheduled to take effect in July, has been postponed until November 2026.

Add as a preferred source on Google +