Adjustment to the Implementation of the Trade Sector: Government Regulation No. 3 of 2026

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As part of its efforts to harmonise and strengthen Indonesia's trade regulatory framework, the Government issued Government Regulation No. 3 of 2026 on the Implementation of the Trade Sector ("GR 3/2026") on 15 January 2026. This regulation introduces a number of notable amendments to Government Regulation No. 21 of 2019 ("GR 21/2019"), reflecting the Government's intention to enhance supervision, clarify distribution arrangements, and strengthen enforcement mechanisms within export, import, and domestic trade activities. This update highlights several key changes introduced under GR 3/2026 that may impact business actors operating in Indonesia.

1. Export and Import Supervision and Authorities

   Under GR 21/2019, the Minister of Trade ("MoT") may conduct verification or technical tracing of certain goods as part of export and import controls, with coordination previously centralised under the Coordinating Ministry for Economic Affairs. Under GR 3/2026, such coordination authority is now shared with the Coordinating Ministry for Food Affairs.^[1] In addition, the MoT may now directly request the Minister of Finance (previously submitted through the Directorate General of Customs and Excise and the Directorate General of Foreign Trade) to impose import prohibitions on importers subject to administrative sanctions.^[2]

   Supervisory powers of the MoT over import activities have also been expanded to include verification of the Business Identification Number (NIB) as an Importer Identification Number (API), import-related business licensing, technical verification and tracing requirements, and compliance with provisions regarding changes in the intended use of imported goods.^[3]

2. Indirect Distribution Provisions

   Previously, indirect distribution of goods could be carried out by distribution business actors through arrangements evidenced by agreements, appointments, and/or written transaction documents. GR 3/2026 now provides clearer classification of these arrangements.

   Specifically, distributors, agents, and franchise arrangements must be formalised through written agreements. Meanwhile, wholesalers and retailers may rely on agreements, appointments, or other documentation evidencing the distribution relationship.^[4]

   Furthermore, the previous requirement mandating a minimum five-year term for exclusive distributor appointments, including a single extension, has been removed.^[5]

3. Direct Selling Activities

   For direct selling companies, several amendments have been introduced, including:

   1. Restatement of the prohibition on selling services^[6], as well as a reaffirmation of the prohibition against pyramid schemes^[7]; and

   2. Expansion of prohibitions to include the use of virtual offices or co-working spaces without permanent physical workspace, and the marketing of goods under exclusive distribution rights that have been declared invalid.

4. Warehousing Provisions

   Warehouse owners, operators, and tenants are now required to submit electronic warehouse administrative reports, with expanded reporting requirements. Additional information now required includes units of goods, opening stock balances, quantities of incoming and outgoing goods, and selling prices.^[8]

   For staple goods and/or essential commodities, reporting must be conducted on a monthly basis, whereas other goods are only required to be reported upon request by the relevant government authority.^[9]

5. Coercive Measures as Part of Administrative Sanctions

   GR 3/2026 introduces a new category of administrative sanctions in the form of government coercive measures. These may include seizure of goods, closure of business premises or warehouses, withdrawal of goods from distribution channels, and/or blocking of electronic systems used in online trading activities.

   The tiered sanctions mechanism has also been revised. The number of written warnings that may be issued has increased from two to three, each with a maximum period of 14 working days. Administrative fines may now be imposed if business actors fail to remedy violations after temporary suspension of business activities or government coercive measures have been implemented.^[10] While the maximum fine calculation period of 30 days remains unchanged, the prior 30-day waiting period following the initial sanction is no longer required before imposing the first fine.^[11]

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1. Article 4 of GR 3/2026. ↩
2. Article 163A of GR 3/2026. ↩
3. Article 14 (2) of GR 3/2026. ↩
4. Article 34 of GR 3/2026. ↩
5. Provision in Article 35 (4) of GR 29/2021 which is removed through GR 3/2026. ↩
6. Article 51 point L of GR 3/2026. ↩
7. Article 51A of GR 3/2026. ↩
8. Article 65 of GR 3/2026. ↩
9. Article 68 of GR 3/2026. ↩
10. Article 168 of GR 3/2026. ↩
11. Article 171 of GR 3/2026. ↩

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Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.

Go to

1. Export and Import Supervision and Authorities
2. Indirect Distribution Provisions
3. Direct Selling Activities
4. Warehousing Provisions
5. Coercive Measures as Part of Administrative Sanctions

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