Jakarta, Indonesia Sentinel — The Indonesian government is drafting new e-commerce tax regulations that would require online marketplaces such as Tokopedia, Shopee, and TikTok Shop to withhold taxes from merchant revenues.
The policy is part of a broader effort to boost state revenue and ensure a level playing field between offline and online micro, small, and medium enterprises (MSMEs).
“The main principle is to simplify tax administration and create fair treatment for both online and offline MSME operators,” said Rosmauli, Director of Outreach and Public Relations at the Directorate General of Taxes (DJP), on Wednesday, June 25, 2025.
While the regulation is not yet finalized, it is expected to be formally introduced as early as next month. Rosmauli added that once the regulation is enacted, it will be publicly and transparently announced.
The the Directorate General of Taxes has already begun outreach efforts to inform marketplace operators of the upcoming rules.
If implemented, the policy is likely to impact major e-commerce platforms, including Tokopedia, Shopee, TikTok Shop, Lazada, Blibli, and Bukalapak.
According to a report by Antara on Thursday (June 26, 2025), Indonesia’s proposed regulation would require e-commerce platforms to withhold a 0.5% income tax from online merchants generating annual revenues above Rp500 million. The withheld taxes would then be remitted directly to the Directorate General of Taxes under the Ministry of Finance.
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Currently, sellers within this income bracket are already subject to a final income tax of 0.5% under Government Regulation No. 23 of 2018. However, the existing system relies on self-reporting and voluntary tax payments by individual sellers, a model the government considers vulnerable to underreporting and non-compliance.
The new rule aims to boost tax compliance among online entrepreneurs by shifting the administrative burden of tax collection to the platforms themselves. Officials believe that automating the process through e-commerce intermediaries will reduce tax leakage and simplify enforcement.
If enacted, the policy could result in higher prices for consumers, as sellers are expected to adjust pricing to offset the added tax deduction.
(Raidi/Agung)
