Akbar Djohan, Chairman of the Indonesian Logistics and Forwarders Association (ALFI), said the limitation on free shipping promotions aims to bring fairness to digital product sales.

"Marketplace platforms are widely known for their ‘money-burning’ strategies by launching massive promotions, including free shipping, to attract consumers," Akbar told Kompas.com on Tuesday, May 20, 2025.

He explained that these platforms often sell products below market prices and provide free shipping in certain regions, with the shipping subsidy usually coming from partner courier services.

"This condition undoubtedly creates unhealthy competition in the marketplace industry, including its delivery services," said Akbar.

He expressed support for Ministerial Regulation No. 8 of 2025 on Commercial Postal Services, which is expected to ensure fair play in digital sales platforms and courier services.

Integrated Platforms Threaten Independent Courier Companies

Akbar highlighted that many marketplace platforms now operate their own logistics or courier businesses. Without regulation, free shipping subsidies would continue benefiting only those with in-house courier services.

"This condition will harm competition in the courier industry," he said.

"Courier companies without their marketplace platforms will never receive priority shipping services."

He added that consumers are more likely to choose couriers offering free shipping, further reinforcing the dominance of platform-owned courier businesses.

New Regulation Limits Free Shipping to Three Days Monthly

The Ministerial Regulation No. 8/2025, issued by the Ministry of Communication and Digital (Komdigi), limits free shipping promotions to a maximum of three days per month.

Gunawan Hutagalung, Director of Post and Broadcasting at Komdigi, explained the restriction applies when product prices fall below production costs or when discounts reduce commercial postal rates below the cost of service.

“Yes (it is limited), but the subject can request an extension based on evaluation,” Gunawan said during a press conference in Jakarta, Friday, May 16, 2025.

He added that courier rate structures, outlined in Article 41 of the regulation, must be based on operational costs plus margins.

These costs include labor, transportation, applications, technology, infrastructure partnerships, and business collaboration expenses.

“If they ask for an extension, we will evaluate their data and compare it to industry averages,” he said.

The draft regulation’s Article 45 also states that year-round price discounts are permitted only if the final price remains at or above cost.

Discounts below cost are restricted to a maximum of three days per month.

Trade Minister: Regulation Supports Producers, Consumers, and MSMEs

Minister of Trade Budi Santoso said the regulation is intended to keep all market participants, producers, consumers, and MSMEs operating in a healthy environment.

“What is the goal? The goal is to keep the market healthy. We consider everyone—consumers, producers,” Budi said at the Ministry of Trade on Monday, May 19, 2025.

“We want our MSMEs and producers to be healthy too. Every aspect matters.”

Government Clarifies Scope: Focus on Courier Rate Discounts

The new regulation prompted public concerns, leading Komdigi to clarify that it does not restrict e-commerce platforms from running free shipping promotions.

Edwin Hidayat Abdullah, Director General of Digital Ecosystem at Komdigi, said the rule targets only the discounts provided by courier companies.

“To clarify, this regulation does not touch promotional free shipping by e-commerce platforms,” Edwin said in a statement on Saturday, May 17, 2025.

“We are only regulating discounted shipping costs provided directly by couriers in their apps or at their counters.”

He warned that excessive courier discounts could lead to systemic risks, underpaid workers, and declining service quality.

The regulation, he said, was designed to preserve balance in the shipping ecosystem.

PHOTO: PEXELS

This article was created with AI assistance.