Indonesia to start e-commerce income tax collection on Aug. 1

Jakarta (ANTARA) - Indonesia will begin collecting income tax through designated e-commerce platforms from August 1, 2026, the Finance Ministry's Directorate General of Taxes (DJP) said on Wednesday.

Director General of Taxes Bimo Wijayanto said the government has granted a one-month transition period for four designated marketplace operators to adjust their systems before they begin collecting tax from sellers. The four marketplaces are Tokopedia, Shopee, Lazada and Blibli.

“This is not a new tax. It is an income tax on business activities conducted through marketplaces. The only change is the collection mechanism, from sellers paying the tax themselves to designated marketplaces collecting it on the government's behalf,” Wijayanto told a press conference in Jakarta.

The policy is stipulated under Finance Ministry Regulation No. 37/2025, which designates electronic commerce platform operators as collectors of Article 22 income tax.

Wijayanto said the government selected the platforms based on factors including system readiness, transaction volume, administrative capacity, the use of escrow accounts and their ability to collect and report taxes electronically.

Under the scheme, marketplaces will collect Article 22 income tax at a rate of 0.5% of a seller's gross turnover, excluding value-added tax (VAT) and luxury goods sales tax.

Consumers will continue to make payments through the marketplace, which will deduct the tax from sellers' income, issue invoices, remit the proceeds to the state treasury and report the collections through a monthly tax return.

Wijayanto said the requirement applies only to sellers with annual gross turnover exceeding Rp500 million (about US$27.800).

He said the regulation does not introduce a new tax but changes the administrative mechanism for collecting existing income tax through marketplace operators.

“We want to reiterate that Finance Ministry Regulation No. 37/2025 is not intended to hamper the digital economy. Rather, it is aimed at ensuring that the digital economy grows under a sound, fair and level governance framework,” he said.

At the same press conference, Indonesian E-Commerce Association (iDEA) Chairman Budi Primawan said the industry was focused on ensuring the policy is implemented effectively while providing legal certainty and minimizing operational disruption for marketplaces and sellers.

"We received the designation letters on July 1, 2026. That gives us one month to adjust our systems, test our business processes and communicate with sellers before tax collection begins on Aug. 1, 2026," he said.

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Translator: Bayu Saputra, Kuntum Khaira

Editor: M Razi Rahman

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