The Indonesian Ministry of Communication and Digital (Komdigi) has issued Regulation Number 8 of 2025, setting guidelines for discounts on commercial postal services.

Postal operators may offer discounts year-round as long as prices remain at or above the basic cost. Discounts below the basic cost are limited to three days per month.

The rule applies to licensed courier companies and includes provisions for upper and lower price limits based on evaluations, which can be triggered by public reports.

Minister Meutya Hafid said the regulation aims to improve service quality and increase consumer access, targeting 50% provincial coverage within 1.5 years.

The rise of ecommerce has created pressure on courier firms to subsidize free shipping.

The regulation also requires wholesale shipping rates for ecommerce to reflect basic costs and service levels.

🔗 Source: Kompas

🧠 Food for thought

1️⃣ Indonesia’s e-commerce boom created unsustainable logistics pricing pressures

The new courier pricing regulation responds to rapid market growth that has intensified pricing competition among delivery companies.

Indonesia’s e-commerce market expanded dramatically to USD 51.9 billion in 2022, becoming Southeast Asia’s largest online retail marketplace1.

This growth generated significant demand for delivery services, with the express delivery market alone reaching USD 3.86 billion in 20232.

The courier industry’s complaints about marketplace free shipping reflect a fundamental tension: while e-commerce platforms compete on convenience through free shipping offers, logistics companies face intense margin pressure in a country where geographic challenges already drive logistics costs to 22% of GDP1.

The three-day monthly limit on below-cost pricing directly addresses the industry’s unsustainable discount practices while still allowing for occasional promotional periods.

2️⃣ Commercial postal service regulations address long-term industry development needs

The regulation goes beyond just pricing rules to focus on expanding delivery network coverage, addressing Indonesia’s persistent logistics infrastructure gaps.