As one of Southeast Asia’s largest e-commerce markets, Indonesia has long been a primary choice for e-commerce platforms and cross-border sellers expanding overseas. However, in recent years, the market’s continuous tightening of policies toward the e-commerce industry has deterred many cross-border players interested in establishing a presence here.

Recently, Indonesia’s Ministry of Communication and Digital Affairs (Komdigi) introduced a somewhat peculiar regulation, announcing adjustments to e-commerce platforms’ free shipping policies. The new rule officially limits the implementation of free shipping services to three days per month, as stipulated in the 2025 Ministerial Regulation No. 8 on Communication and Digital Affairs (Permen Komdigi).

Specifically, the restriction on free shipping applies only to two scenarios:

Notably, e-commerce enterprises can still enjoy normal freight discounts when the final shipping fee is equal to or higher than the basic service fee.

Gunawan Hutagalung, Director of Postal and Broadcasting at Indonesia’s Ministry of Communication, explained that the measure does not fully ban free shipping but aims to control its abuse to maintain the postal industry’s healthy operations and fair market competition. Indonesian authorities believe prolonged deep discounts could undermine the stability of the courier industry, including reducing couriers’ wages and service quality. Additionally, unrestricted free shipping may become a tool for predatory pricing by platforms, stifling the market’s long-term sustainability.

Edwin Hidayat Abdullah, Director General of the Digital Ecosystem at Komdigi, added that the new rule does not restrict e-commerce platforms’ free shipping promotions but targets discounts provided by courier companies. “If e-commerce platforms offer shipping subsidies as part of their promotions, that remains entirely within their rights.”