021-7997973 | Hotline 08111211504
SIP Law Firm Logo
SIP LAW FIRM
Home
About
Legal Services
Our Team
Resources
Press ReleasesCase Studies
Platforms
Contact Us

Regulation of Medicine Distribution Through E-Commerce

26 September 2022inARTICLES
Share
medicine e-commerce

Digital technology p has been adopted in almost every line of people’s lives. One of the impacts is changes in people’s behavior, such as the increase in online buying and selling transactions. This digital-based selling mode has eased the public to engage in daily commercial activities.

Although digital technology has had numerous positive impacts on society, negative impacts of using digital technology are unavoidable. For example, the widespread distribution of various types and classes of medicine freely on e-commerce platforms that have potentials to  threat the health and lives of people.

So far, permission for the online distribution or sale of medicine have only been granted to parties who already have permits issued by the relevant agencies, such as Pharmacy Electronic System Operators (PSEF), pharmaceutical wholesalers, branches of pharmacy wholesalers or pharmacies that use Electronic Systems (PSE). ).

The use of medicine that are not appropriate and not in accordance to doctor’s recommendations will endanger lives and have the potential to cause abuse, especially if the medicine being sold does not have a distribution permit.

In essence, the distribution of medicine with certain types and groups cannot be done freely without a doctor’s prescription. This also applies to medicine sale through e-commerce.

To protect the public from the risks arising from the distribution of counterfeit medicine or illegal medicine, online pharmaceutical service providers are required to fulfill the stipulations in the Regulation of the Food and Drug Supervisory Agency (BPOM) No. 8 /2020 on Control of Medicine and Food Circulated Online by taking into account Law No. 36/2009 on Health, Law No. 35/2009 on Narcotics and Law No. 5/1997 on Psychotropics.

Provisions for online medicine distribution based on the Food and Drug Supervisory Agency Regulation No. 8 /2020, are as follows:

  1. Online distribution of medicine by the Pharmaceutical Industry, Pharmaceutical Wholesalers, Branch Pharmacy Wholesalers and Pharmacies must use an Electronic System.
  2. Distribution of medicine online is prohibited through social media, daily deals and classified ads.
  3. Medicine that are distributed must have a distribution permit and meet the requirements for a good way of making and distributing medicine as well as  the requirements for safety, efficacy, and quality of medicine.
  4. Circulation of medicine online can only be carried out for medicine that are included in the class of over-the-counter drugs, limited over-the-counter drugs and hard drugs provided that hard drugs must be based on a doctor’s original prescription.
  5. Online medicine delivery by pharmacies can use the Pharmacy Electronic System or provided by licensed PSEF in accordance with the provisions.
  6. Delivery of medicine that are distributed online can be carried out directly to patients or sent to patients, where delivery can be carried out independently by pharmacies or in collaboration with third parties in the form of legal entities. In this delivery process, pharmacies must be responsible for the safety and quality of medicine, such us providing product information, labels containing information on medicine use, maintaining the confidentiality of the contents of the shipment, ensuring that medicine are sent to the right destination and documenting medicine delivery.
  7. Online medicine delivery by pharmacies to patients is carried out in accordance with the provisions for the delivery of goods and services in Electronic System trading.
  8. Pharmacies and/or PSEF are prohibited from distributing online drugs that include:
  • Hard drugs, including specific types of drugs based on the existing regulations.
  • Drugs containing pharmaceutical precursors
  • Medicine to treat dysfunction.
  • Injection preparations, other than insulin.
  • Implant preparations.
  • Drugs listed in  the class of Narcotics and Psychotropics.

The government rules strict sanctions against business actors, PSE and PSEF violating the provisions of online drugs distribution as stipulated in Article 32 Paragraph (1) the Food and Drug Supervisory Agency Regulation No. 8 /2020. The sanctions range from warnings to closing or blocking the electronic sales system. Sanctions from revocation of licenses to withdrawal of drugs sold can be imposed on a number of parties, including pharmaceutical service facilities.

In addition to administrative sanctions, the practice of distributing illegal drugs, whether online or offline, can be subject to criminal sanctions with sanctions stipulated in the following articles;

Article 197 of Law no. 36 of 2009;
“Everyone who intentionally produces or distributes pharmaceutical preparations and/or medical devices that does not have a distribution permit as referred to in Article 106 paragraph (1) shall be subject to a maximum imprisonment of 15 (fifteen) years and a maximum fine of Rp. 1,500,000,000, – (one billion five hundred million rupiah)”.

Article 106 paragraph (1)
“(1) Pharmaceutical preparations and medical devices can only be distributed after obtaining a distribution permit.”

This action is one of the actual actions in dealing with the progress of the digital era in responding to the development of online drug buying and selling transactions.

For this reason, business actors who operate digital health platforms or e-commerce platforms providing online pharmaceutical services must be more careful in marketing drugs and ensure that licensing requirements are met in accordance with applicable regulations.

Author / Contributor:

Asdel Fira, S.H., CHRP

Senior Associate

Contact:

Mail       : fira@siplawfirm.id

Phone    : +62-21 799 7973 / +62-21 799 7975

 

About Author

Hafes

Hafes

Written by Hafes, part of the SIP Law Firm team delivering insights and updates on the latest legal developments.

Read Profile →

More on this category

  • Memahami Dolus dan Culpa pada Tindak Pidana
  • Reformasi Regulasi Sertifikasi ISPO: Kewajiban Baru bagi Industri Bioenergi Sawit
  • Buktikan Keunggulan di Top 100 Indonesian Law Firms 2026, SIP Law Firm Raih Gelar Managing Partner of the Year

Pinned Posts

  • Peringatan Resmi terhadap Modus Penipuan yang Mengatasnamakan SIP Law Firm

    13 MAR 2026inARTICLES
  • SIP Law Firm Partners Named to The 200 Club 2026 by Hukumonline

    03 MAR 2026inARTICLES
  • Indonesia’s Halal Certification: Legal Framework and Global Market Strategy

    29 SEP 2025inARTICLES

Ask Us Legal Questions!

Click here to ask a question to our legal experts

Ask a question illustration

We Can Speak on Your Media

View our media experts or contact us to request for your next program

Media experts illustration

We are here to help

Get in touch now to let us know how we can help you. Connect with our LinkedIn and subscribe to our newsletter to stay updated with our latest updates.

Contact Us
Connect on LinkedIn
SIP Law Firm Logo

Full-Service Legal Solutions with Integrity and Professionalism Since 2011

Indonesia's Leading #EcoLawFirm🍀

All Rights Reserved of SIP Law Firm © 2026
Supported by SIP Corp

Services

  • Legal Services & Practice Areas
  • Intellectual Property
  • Find a Media Expert

Platforms

  • SIP-R Consultant
  • Regulasip
  • SIP Library
  • Book Publications

SIP Law Firm

  • About Us
  • Awards and Recognitions
  • Our Team
  • Info
  • Career
  • Sustainability Reports
  • Contact Us
Jakarta Head Office

No. 7 Building, Jl, Buncit Raya No.7, Jakarta Selatan 12760, DKI Jakarta, Indonesia

Phone : +62-21 799 7973
Phone: +62-21 799 7975
Fax : +62-21 799 7981
E-mail : head-office@siplawfirm.id
Yogyakarta Branch Office

Prima SR Hotel & Convention Lt.3 Jalan Magelang KM.11, Yogyakarta, Indonesia

Phone : +62-274 2880777
E-mail : yogyakarta-office@siplawfirm.id
Surabaya Branch Office

Puri Regency Bussines Centre Jl. Puri Jambangan Baru III, No.19, Blok AK, Surabaya, Indonesia

Phone : +62-31 9900 3117
Fax : +62-31 9900 3110
E-mail : surabaya-office@siplawfirm.id

SIP Law Firm The Best Law Firm in Jakarta

SIP Law Firm is a law firm providing premium legal solutions for local and international clients based in Jakarta. The firm has two representative offices in Yogyakarta and Surabaya.

Largest Litigation Practice of the Year - Hukum Online - Juara 1 - 2025

SIP Law Firm is a law firm ranked first in the Largest Litigation Practice of the Year 2025 category by Hukumonline. This recognition affirms SIP Law Firm's standing as a leading litigation practice in Indonesia, with a strong and consistent focus on handling strategic and complex litigation matters across various sectors.

SIP Law Firm Provides Health Law Services

We provide comprehensive Healthcare Legal services for all those involved in the healthcare industry, such as healthcare employment contracts, medical supplier agreements, healthcare business acquisitions, medical disputes, etc. Our Healthcare Legal team has years of experience handling major cases in the medical world related to facilities, medical practitioners, and other related matters.

Trusted Intellectual Property and Patent Consultant

SIP Law Firm, through SIP-R Consultant, provides legal consultation and advice to assist clients in protecting their Intellectual Property Rights (IPR) and Patent Rights. We provide legal advice, assist with IPR registration, and handle patent disputes in court. The SIP-R Consultant team has been trusted by individual clients, SMEs, and multinational corporations across various industries, including the creative industry, musicians, fashion, technology, and others.

SIP Law Firm Pioneer of Eco Law Firm