Government Limits Free Shipping Subsidies to Three Days Per Month on E-Commerce Platforms

The Indonesian government, through the Ministry of Communication and Digital Affairs (Komdigi), has officially regulated the limitation of free shipping subsidy programs on e-commerce platforms to a maximum of three days per month. This policy is outlined in Ministerial Regulation No. 8 of 2025 on Commercial Postal Services, as reported by detik.com.

Gunawan Hutagalung, Director of Postal and Broadcasting Services at Komdigi, explained that this policy is designed to foster a fair business environment in the e-commerce and logistics sectors. He emphasized that the restriction aims to curb predatory pricing practices that may harm micro, small, and medium enterprises (MSMEs).

"Overly aggressive free shipping subsidies can distort the market and put pressure on local players. We need to restructure the ecosystem to ensure fairness for all," he stated.

The policy has sparked mixed reactions among the public. Some consumers expressed disappointment over the restriction, as free shipping promotions have long been a major attraction for online shoppers. The Indonesian Consumers Foundation (YLKI) even voiced concern that the policy could reduce purchasing power, especially among lower-income groups.

Meanwhile, the Indonesian E-Commerce Association (idEA) acknowledged the government’s intent to safeguard fair competition. However, the association urged the government to provide clear technical guidelines to prevent confusion during implementation.

"We support regulations that promote market balance, but clear guidance is essential to help the industry adjust appropriately," said a representative of idEA.

This policy is expected to affect the promotional strategies of e-commerce players and influence consumer shopping behavior amid growing competition in the digital sector.