The Indonesian Government is reportedly planning to involve state-owned banks, private banks, fintech companies and e-commerce platforms in collecting taxes on digital transactions from 9 November 2026.
The announcement followed remarks by Hashim Djojohadikusumo, the President’s Special Envoy for Climate and Energy, who outlined plans to expand digital tax collection at a forum last week.
According to Hashim, all government banks, private banks and all fintech platforms, including Shopee, Lazada, GoTo and so forth, must participate in collecting tax revenue (PPN) and must remit taxes that have not previously been collected.
Does this mean that all interbank transfers made by the public will become subject to tax? The answer is no.
Indonesia’s digital taxation framework has specific provisions governing the parties appointed as collection agents, the parties subject to collection and the transactions classified as taxable objects.
The Directorate General of Taxes authority to appoint other parties as withholding or collection agents is stipulated under Article 32A of the General Provisions and Tax Procedures Law (GPTP Law), as introduced by Law No. 7 of 2021 on the Harmonisation of Tax Regulations (Harmonisasi Peraturan Perpajakan or HPP).
These parties may include entities directly involved in or facilitating transactions by providing the means to conduct them, including transactions carried out electronically.
Currently, Indonesia has several tax collection mechanisms for digital transactions, namely Value Added Tax (VAT) on electronic commerce (perdagangan melalui sistem elektronik or PMSE), the Tax Collection System for Cross-Border Digital Transactions (sistem pemungutan pajak transaksi digital luar negeri or SPP-TDLN), and Article 22 Income Tax on marketplace transactions.
The following sections explain how each of these three mechanisms operates.
1. VAT on E-Commerce
VAT on e-commerce is a tax collection mechanism applied to the utilisation of intangible taxable goods and taxable services originating outside Indonesia’s customs territory within the customs territory through electronic commerce.
The collection of VAT on e-commerce was first implemented in 2020 under Government Regulation in Lieu of Law No. 1 of 2020. The regulatory framework has since been refined in line with developments in Indonesia’s tax system. Currently, VAT collection on e-commerce is governed by Minister of Finance Regulation No. 81 of 2024.
Under this mechanism, the Government, through the Director General of Taxes (DGT), appoints e-commerce businesses as other parties responsible for collecting VAT from consumers, remitting the tax collected and reporting the collection and payment to the DGT.
E-commerce businesses may be appointed as collection agents if their transactions with Indonesian consumers exceed IDR 600 million annually or IDR 50 million monthly, and/or their traffic exceeds 12,000 annually or 1,000 monthly.
Currently, 245 e-commerce businesses have been appointed as collection agents and are actively remitting VAT on e-commerce transactions to the DGT. Between January and September 2026, the total VAT collected by these businesses reached IDR 9.54 trillion.
The applicable VAT rate is 12%, calculated using an alternative tax base (dasar pengenaan pajak or DPP) set at 11/12 of the selling price, import value or consideration.
VAT on e-commerce is not a new tax. Previously, VAT on the utilisation of intangible taxable goods and taxable services from outside Indonesia’s customs territory was payable by consumers through self-remittance. The current mechanism shifts the collection responsibility to designated e-commerce businesses.
2. SPP-TDLN: Tax Collection on Cross-Border Digital Transactions
In addition to VAT on e-commerce, the Government has introduced the Tax Collection System for Cross-Border Digital Transactions (sistem pemungutan pajak transaksi digital luar negeri or SPP-TDLN).
This mechanism also applies to the utilisation of intangible taxable goods and taxable services originating outside Indonesia’s customs territory within the customs territory.
Unlike the VAT on e-commerce scheme, which appoints e-commerce businesses as collection agents, the SPP-TDLN mechanism allows the DGT to appoint banks and non-bank financial institutions that process payments, known as issuers, to collect VAT.
Under this arrangement, banks and non-bank financial institutions collect VAT following confirmation through the SPP-TDLN system that VAT is payable on an overseas digital transaction involving the utilisation of intangible taxable goods or taxable services.
The introduction of SPP-TDLN does not result in double VAT collection. Transactions on which VAT has already been collected by an appointed e-commerce business will not be subject to another VAT collection under SPP-TDLN.
Consequently, SPP-TDLN focuses on cross-border digital transactions that have not previously been covered by the existing VAT on e-commerce mechanism.
Currently, six issuers have been appointed by the DGT as collection agents under SPP-TDLN: BRI, BNI, BSI, Bank Mandiri, BTN and LinkAja.
These six issuers are required to collect VAT at a rate of 11/111 of the payment for the supply of intangible taxable goods or taxable services originating outside Indonesia’s customs territory.
The number of participating issuers is expected to increase as more institutions undergo the sandboxing and stabilisation process in collaboration with PT Jalin Pembayaran Nusantara, the developer of the SPP-TDLN system.
3. Article 22 Income Tax Collection by Marketplace Operators
Tax collection in Indonesia’s digital economy is not limited to digital goods and services supplied from overseas. It also covers businesses earning income through trading activities conducted on marketplace platforms.
Under Minister of Finance Regulation No. 37 of 2025, the Government has appointed four marketplace platforms to collect Article 22 Income Tax at a rate of 0.5% on the gross turnover earned by domestic merchants from trading activities conducted through their platforms.
The four appointed marketplace operators are Tokopedia, Shopee, Lazada and Blibli.
Although the regulation governing Article 22 Income Tax collection has been in force since 2025, collection commenced on 1 October 2026.
For domestic merchants, the 0.5% Article 22 Income Tax collected by marketplace operators may be credited against their income tax liability or applied as part of the settlement of final income tax, including the final income tax applicable to qualifying micro, small and medium enterprises (MSMEs), which carries the same 0.5% rate.
Accordingly, Article 22 Income Tax on marketplace transactions does not introduce a new tax. Instead, it changes the collection mechanism from self-remittance by traders to direct collection by appointed marketplace operators at the time of the transaction.
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