Indonesia will implement a new regulation in July 2025, requiring e-commerce platforms to withhold a 0.5% tax on sellers' sales income. This measure aims to boost tax compliance and increase state revenue, targeting small and medium-sized enterprises (SMEs) with annual revenues between 500 million and 4.8 billion rupiah.
Major e-commerce platforms such as TikTok Shop, Tokopedia, Shopee, Lazada, Blibli, and Bukalapak will be responsible for collecting and remitting the tax on behalf of sellers. The government's goal is to address the "shadow economy" and ensure equitable contributions from all sectors, particularly the growing digital economy.
The Indonesian E-Commerce Association (idEA) supports the policy but emphasizes the need for careful implementation. This initiative is part of Indonesia's efforts to strengthen its fiscal position, following a lower-than-expected budget deficit in 2024.