Comparative Analysis of Cross-Border E-Commerce Regulations in Indonesia and China

Jan 27, 2026 | Berita

E-Commerce Regulations

The rapid evolution of digital technology has catalyzed the growth of Cross-Border E-Commerce (CBEC), a trade model that facilitates electronic transactions across national boundaries without the constraints of traditional geographical limitations. This paradigm shift has fundamentally altered global distribution networks, enhanced market efficiency, and created substantial economic opportunities, particularly in nations with high internet penetration rates. As a practical and secure solution for modern enterprises, CBEC enables businesses to leverage digital platforms to reach international markets, providing Small and Medium-Sized Enterprises (SMEs) with unprecedented global visibility.

 

The Regulatory Landscape of CBEC in Indonesia

 

Indonesia has established a legal framework to govern CBEC activities, primarily through Minister of Trade Regulation No. 31/2023 on Business Licensing, Advertising, Guidance, and Supervision of Business Actors in Trading Through Electronic Systems (Permendag 31/2023). This regulation introduces the formal concept of Trading Through Electronic Systems (PMSE), defined as any trade transaction conducted through a series of electronic devices and procedures.

Under Article 3 Paragraph 1 of Permendag 31/2023, businesses operating within the CBEC sector must obtain specific business licenses based on the risk-based scale of their activities. Furthermore, Article 4 mandates that domestic merchants engaging in PMSE must operate through electronic systems that align with the Indonesian Standard Industrial Classification (Klasifikasi Baku Lapangan Usaha Indonesia – KBLI).

For foreign merchants, the regulatory requirements are particularly stringent. According to Article 5 of Permendag 31/2023, foreign entities must possess valid business licenses issued by their home country’s competent authorities. These documents must be legalized either by the relevant authority for member states of the Apostille Convention or by Indonesian diplomatic representatives in the country of origin for non-member states.

Beyond specific trade regulations, Law No. 11/2008 on Electronic Information and Transactions (the ITE Law) serves as the foundational legal pillar for digital activities. Article 2 of the ITE Law asserts extraterritorial jurisdiction, stipulating that the law applies to any person, whether within or outside Indonesian territory, whose legal actions result in legal consequences within Indonesia. This jurisdictional reach is critical in the CBEC context, where digital transactions often involve international private law complexities.

 

The Legislative Framework in the People’s Republic of China

 

In contrast, the primary legal instrument in China is the E-Commerce Law of the People’s Republic of China (the E-Commerce Law). This comprehensive statute governs both Business-to-Business (B2B) and Business-to-Consumer (B2C) transactions, with the dual objectives of ensuring market fairness and robust consumer protection.

The Chinese E-Commerce Law emphasizes the obligations of operators regarding tax compliance, business licensing, and platform responsibility. Every e-commerce operator, including platform providers and individual merchants, must fulfill tax obligations and ensure their products comply with licensing standards. 

A distinctive feature of the Chinese framework is the heightened accountability of platform operators, who may be held liable if they fail to address infringements occurring on their platforms. The law includes significant administrative sanctions and substantial fines, reflecting a centralized and rigorous approach to market supervision and orderly industrial development.

 

Consumer Protection Standards in Cross-Border Trade

 

In Indonesia, consumer rights within CBEC are anchored in Law No. 8/1999 on Consumer Protection (the Consumer Protection Law). Article 4 of this law enumerates several fundamental rights, including the right to safety and security in consumption, the right to transparent and honest information, and the right to seek redress through proper dispute resolution mechanisms.

These rights are further operationalized by Permendag 31/2023. Article 9 of Permendag 31/2023 requires Electronic System Providers (PPMSE) to maintain clear and accessible consumer complaint services, including contact numbers or email addresses that must be responsive to inquiries. Article 10 of Permendag 31/2023 extends this obligation by requiring platforms to display contact information for the Directorate General of Consumer Protection and Trade Compliance, ensuring that consumers have a direct line to government oversight.

While Indonesia distributes these protections across various instruments such as ministerial regulations and government decrees, China’s E-Commerce Law integrates consumer protection standards directly into its unified e-commerce statute. This consolidated approach ensures that consumer rights are a core component of the broader commercial regulatory framework.

Also read: Financial Services & Super-app Governance Through the Regulatory Perspective

 

Divergent Approaches to Digital Governance

 

While both Indonesia and China aim to foster digital economic growth, their regulatory methodologies differ significantly. Indonesia utilizes a fragmented approach, relying on a combination of the ITE Law, the Consumer Protection Law, and specific ministerial regulations like Permendag 31/2023 to manage cross-border complexities and licensing.

Conversely, China employs an integrated model where licensing, taxation, platform liability, and consumer protection are synthesized within a single, comprehensive E-Commerce Law. China’s framework is characterized by more centralized supervision and stringent enforcement, whereas Indonesia’s system reflects an evolving landscape of specialized regulations designed to address the unique jurisdictional challenges of the digital age.

Also read: ESG in Indonesia: Key to Sustainable Corporate Governance and Growth

 

Regulations:. 

  • Peraturan Menteri Perdagangan Nomor 31 Tahun 2023 tentang Perizinan Berusaha, Periklanan, Pembinaan, dan Pengawasan Pelaku Usaha dalam Perdagangan Melalui Sistem Elektronik (“Permendag 31/2023”),
  • Undang-Undang Nomor 11 Tahun 2008 tentang Informasi dan Transaksi Elektronik (“UU ITE”).
  • Undang-Undang Nomor 8 Tahun 1999 tentang Perlindungan Konsumen (“UU Perlindungan Konsumen”).

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