Indonesia Caps Discounted Shipping by Couriers to Protect Logistics Sector
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JAKARTA, Investortrust.id – The Ministry of Communication and Digital, or Komdigi, has issued a new regulation limiting heavily discounted shipping promotions by courier companies to no more than three days per month, aiming to prevent destructive pricing practices and support fair competition in Indonesia’s booming logistics and e-commerce industries.
The policy, issued under Ministerial Regulation Komdigi No. 8/2025 on Commercial Postal Services, was signed by Minister of Communication and Digital Meutya Hafid and formally presented on Friday, May 16, 2025.
In the regulation’s Article 45, courier service providers are allowed to apply shipping discounts only if final rates remain at or above operational costs. Discounts that push shipping prices below cost are limited to a maximum of three days per month, unless extended through formal evaluation by the ministry.
“Yes, it’s limited, but extensions can be granted upon evaluation,” said Gunawan Hutagalung, Director of Postal Services at the ministry. “We’ll compare submitted data with industry cost benchmarks to ensure fairness and healthy competition.”
Gunawan explained that the regulation targets courier-level discounts—not those subsidized by e-commerce platforms. This distinction was reinforced by Edwin Hidayat Abdullah, Director General of the Digital Ecosystem at Komdigi.
“This rule doesn’t regulate free shipping promotions by e-commerce platforms,” said Edwin. “We only cap discounts applied by couriers if they dip below real delivery costs—couriers, intercity transport, sorting, and support services.”
He added that continued unsustainable discounts could damage courier earnings, compromise service quality, and threaten the long-term health of the logistics ecosystem.
Balancing Cost Efficiency with Courier Protection
Vice Minister of Communication and Digital Angga Raka Prabowo defended the new measure, rejecting suggestions that it would hurt consumer choice or reduce competitiveness.
“For consumers, free shipping is convenient, but we must also protect the couriers who deliver our goods,” Angga said. “Some promotions go too far and end up exploiting the delivery workforce.”
Minister Meutya Hafid stressed the regulation is designed to ensure a sustainable logistics ecosystem and avoid sudden cost spikes after initial price dumping.
“This is about long-term industry health,” she said. “We don’t want services to start cheap and suddenly become expensive.”
Business Support: Kadin Welcomes Regulation
The Indonesian Chamber of Commerce and Industry (Kadin) has endorsed the regulation as a necessary step to standardize postal services and boost the country’s logistics competitiveness.
“This new regulation addresses an urgent need for integrated, standardized postal services,” said Carmelita Hartoto, Vice Chair of Kadin’s Infrastructure and Regional Development Coordination.
According to Kadin, Indonesia’s e-commerce market reached Rp533 trillion ($33.2 billion) in 2023, with a 27.4% annual growth in business units. Yet logistics infrastructure remains uneven and complex.
Carmelita emphasized that the policy aligns with the 2013 Government Regulation on postal service obligations and supports small businesses by preventing predatory pricing practices.