Trade Minister Regulation No. 31 of 2023 on Business Licensing, Advertising, Coaching, and Supervision of Electronic Commerce (PMSE)
Peraturan Menteri Perdagangan Nomor 31 Tahun 2023 tentang Perizinan Berusaha, Periklanan, Pembinaan, dan Pengawasan Pelaku Usaha dalam Perdagangan Melalui Sistem Elektronik
What this regulation does
Plain-English summary of the regulation's substance and how it affects PT PMA operations.
Permendag 31/2023 governs Indonesian e-commerce licensing (PMSE — Penyelenggara Perdagangan Melalui Sistem Elektronik). The headline rules: cross-border e-commerce platforms must register as PMSE-LN (Foreign PMSE) and may not directly sell goods to Indonesian retail consumers below USD 100 minimum import value, ending the so-called 'Project S' route by which TikTok Shop and similar platforms serviced sub-$100 cross-border parcels. Domestic e-commerce platforms register as PMSE-DN. Negative-list product restrictions apply (textiles, footwear, cosmetics, electronics in some categories). Live-shopping and social-commerce platforms are now explicitly subject to PMSE rules. The regulation sits on top of UU 7/2014 (Trade Law) and UU 11/2020 (Cipta Kerja) and works alongside Kominfo's PSE registration regime under PP 71/2019. Foreign-owned PT PMAs operating online retail under KBLI 47914 (Online Retail) or marketplace platforms must register as PMSE within six months of commencing operations.
Key provisions
The articles and operational points most commonly referenced in practice.
- 01
PMSE-LN minimum import value
Cross-border platforms selling to Indonesian retail consumers must apply a USD 100 minimum import value. Sub-$100 cross-border parcels via marketplace are no longer permitted (the 'Project S' shutdown).
- 02
Negative list of imported retail goods
Specific product categories — including selected textiles, footwear, and cosmetics — cannot be sold cross-border to retail consumers via marketplace channels.
- 03
Social commerce treated as PMSE
Live-shopping, in-app commerce, and social-platform commerce must comply with PMSE rules, eliminating the prior gap that benefited TikTok Shop.
- 04
PMSE-DN vs PMSE-LN
Domestic and foreign platforms have distinct registration regimes; both register with the Ministry of Trade alongside Kominfo PSE registration under PP 71/2019.
KBLIs affected
Indonesian business classifications explicitly referenced or governed by this regulation.
3 KBLIs referenced by Permendag 31/2023 (E-Commerce)
Click a code to see the full KBLI profile — risk, foreign-ownership, licensing, and setup cost.
Official text
For compliance and dispute work, cite the original Indonesian text directly.
Peraturan Menteri Perdagangan Nomor 31 Tahun 2023 tentang Perizinan Berusaha, Periklanan, Pembinaan, dan Pengawasan Pelaku Usaha dalam Perdagangan Melalui Sistem Elektronik
tentang PMSE — Perdagangan Melalui Sistem Elektronik
Need help complying with Permendag 31/2023 (E-Commerce)?
Emerhub is a licensed corporate-services provider in Indonesia. We handle PT PMA setup, OSS NIB application, sector-specific permits, LKPM filing, and the full compliance stack triggered by Permendag 31/2023 (E-Commerce). Get an exact quote for your specific situation.
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