Indonesian MP Arizal Tom Liwafa urges review of marketplace fees crippling UMKM

Member of Indonesia's House of Representatives Arizal Tom Liwafa, a deputy from the PAN party, highlighted that fees charged by e‑commerce marketplaces – including administration charges, free‑shipping subsidies, promotional discounts, affiliate commissions and advertising costs – can cut a seller’s net profit from a Rp50,000 sale to roughly Rp28,000. He described the situation as a serious alarm for the digital economy and warned that small‑scale merchants risk being squeezed out by larger, better‑capitalised brands.

Liwafa called on the government to evaluate the digital trade ecosystem and proposed an open dialogue among the government, marketplace operators and seller groups to develop a fairer and more transparent fee structure that protects Indonesia’s UMKM sector, which he said underpins the national economy.