Indonesian gov't blocks eBay, others over registration rules

The Indonesian Ministry of Communication and Digital (Komdigi) has blocked access to three Private Electronic System Providers (PSE) for failing to comply with registration requirements.

The companies affected are eBay Inc., PT Dunia Luxindo (operating as Bath and Body Works), and KLM Royal Dutch Airlines.

The announcement was made on June 28, 2025, following prior notifications and warnings.

Alexander Sabar, director general of Digital Space Oversight, said the access restrictions are administrative sanctions under Article 7 of Regulation No. 5/2020.

Komdigi said the action is to maintain an orderly digital space and ensure equal obligations among digital service providers.

The ministry urges all PSEs to register through the OSS system and update their information as needed.

🔗 Source: CNN Indonesia

🧠 Food for thought

1️⃣ Indonesia’s expanding digital regulatory framework reflects regional trends

Indonesia’s blocking of eBay follows a consistent pattern of increasing regulatory oversight that has been evolving since at least 2016, when the country amended its Electronic Information and Transactions Law (EITL) to expand government powers1.

This registration requirement for Private Electronic System Providers (PSEs) is part of a larger regulatory architecture that includes digital taxation (with an 11% VAT on digital services), content moderation requirements, and foreign ownership disclosure rules2.

Indonesia’s approach mirrors similar regulatory frameworks implemented by other ASEAN nations like Vietnam and Thailand, which have also instituted mandatory registration requirements for foreign digital service providers.

The country’s digital economy is projected to reach between $210-360 billion by 2030, creating strong incentives for the government to establish comprehensive oversight mechanisms as this sector grows3.

Despite its ambitions to become a digital powerhouse, Indonesia maintains one of the highest rates of VPN usage globally (41% according to some studies), reflecting ongoing tensions between regulatory control and digital freedom4.

2️⃣ Foreign digital companies face increasing compliance hurdles

The blocking of international platforms like eBay and KLM highlights the growing compliance challenges facing foreign companies in Indonesia’s digital marketplace.