Firm Stance: Minister Threatens to Shut Down E-Commerce Platforms Not Supporting MSMEs

JAKARTA – Indonesia’s Minister of Micro, Small, and Medium Enterprises Maman Abdurrahman has issued a stern warning to e-commerce platforms to prioritize local entrepreneurs or face closure.

Maman's remarks came from an aknowleggement that fierce competition posed by technological advancements and the influx of imported goods had exposed Indonesia's micro, small, and medium enterprises (MSMEs) vulnerability. 

“If any digital marketplaces fail to contribute to or support our MSME entrepreneurs, the Ministry of MSMEs will shut them down,” Maman declared during the inauguration of high-ranking officials at the Ministry of MSMEs held at Tanah Abang Market, Jakarta, on Wednesday, January 15, 2025.

“I’m saying this openly to everyone, including MSME entrepreneurs—if these platforms are not pro-local business and do not contribute to local production, we will take action. We just need to coordinate with the Minister of Digital Affairs to shut them down,” he asserted.

Maman stressed the importance of collective action, urging all stakeholders—including the government and e-commerce platforms—to work together in supporting MSMEs. He highlighted the need for these entrepreneurs to transition to digital ecosystems to compete in global markets.

“Indonesia’s MSME entrepreneurs are now facing the strong currents of the digital marketplace,” he noted, emphasizing the urgent need for adaptation.

He encouraged MSME entrepreneurs to embrace e-commerce alongside their physical stores to increase sales. “Adaptation is key. Beyond physical shops, we encourage you to expand into digital platforms to boost revenue,” he said.

Addressing representatives from major e-commerce platforms like Tokopedia, Shopee, Lazada, and TikTok, who attended the event, Maman called for greater access to financing for MSMEs. He also urged these platforms to simplify processes and ensure their programs benefit local businesses.

“Digital platforms must support local entrepreneurs. If not, we will take decisive action,” he reiterated.