TEMPO.CO, Jakarta - The Indonesian E-commerce Association (idEA) believes that a sufficient transition period and a comprehensive public awareness campaign are crucial for implementing tax collection through marketplace platforms. This is particularly challenging for MSMEs (micro, small, and medium enterprises), who may not be accustomed to digital tax administration.
According to Budi Primawan, idEA's Secretary General, marketplace consensus indicates a need for at least one year of preparation before being appointed as tax collectors. This appointment refers to Finance Ministerial Regulation Number 37 of 2025, which concerns the collection of Income Tax (PPh 22) by electronic trading organizers (PMSE).
Budi mentioned that while marketplaces are not obligated to verify turnover statements from sellers, they must provide a system allowing traders to upload these documents and submit them to the Directorate General of Taxes.
"This requires system readiness, education, and good communication with the sellers," Budi said in an official statement received by Tempo on Thursday, July 17, 2025.
Under the new regulation, online traders must submit a turnover statement to the marketplace. Notably, the PPh 22 is not imposed on traders with a turnover of less than Rp500 million.
Budi also clarified that this new regulation does not impose new tax burdens on sellers but rather shifts the collection mechanism to digital platforms. "On the other hand, even though the tax is charged to the seller, in practice, there is the potential for the burden to be passed on to consumers, depending on each seller's strategies," he explained.
In principle, Budi affirmed that idEA supports the government's efforts to strengthen tax compliance, including within the e-commerce sector.
idEA also noted that similar policies have been implemented in several countries such as India, Mexico, the Philippines, and Turkey. However, they assess that Indonesia's digital ecosystem is distinct and requires an implementation approach suitable for the local context.
"We also await further instructions, including comprehensive technical communication from the Directorate General of Taxes (DJP) so that industry players and MSMEs can adjust well," Budi added. He emphasized the association's openness to further dialogue for a fair and proportional implementation of this policy.
DJP's Stance on Implementation
The DJP stated that this policy will take effect once marketplaces are ready. Hestu Yoga Saksama, Director of Tax Regulations I at DJP, mentioned that marketplaces will be designated as tax collectors through a determination letter issued by the Director General of Taxes. DJP will also create a special application for e-commerce platforms appointed for this role.
"Maybe in a month, two months, we will appoint and designate them as the tax collector of PMSE," he said at his office on Monday, July 14, 2025.
Meanwhile, Director General of Taxes Bimo Wijayanto announced that his institution will appoint four specific e-commerce platforms: Shopee, Tokopedia, Lazada, and Blibli.
"Later, they will collect Income Tax from the merchants trading on their electronic platforms," Bimo told reporters after a meeting with the House of Representatives Commission XI in the Parliament Complex, Jakarta, on Monday, July 14, 2025.
Ilona Estherina contributed to the writing of this article.
Editor's Choice: Tax DG: Online Sellers' Tax Won't Lead to Increased Product Prices
Click here to get the latest news updates from Tempo on Google News
TikTok Shop Claims Official Distributor Transactions Have Jumped 15-Fold
16 jam lalu
TikTok Shop by Tokopedia has recorded an increase in transactions for a number of sellers with mall or official distributor status in the e-commerce.
Tax DG: Online Sellers' Tax Won't Lead to Increased Product Prices
2 hari lalu
The Director General of Taxation emphasized that the tax collected by e-commerce is not a new levy.
Government Eyes Social Media for Tax Revenue After Marketplaces
2 hari lalu
The Indonesian government has officially designated e-commerce platforms or marketplaces as tax collectors for Income Tax (PPh 22) on online merchants
TikTok Indonesia: 63% of Monetized Creators Earn Above Minimum Wage
2 hari lalu
TikTok Indonesia says 8 million creators earn from monetization, while 21 million sellers on its platforms boost economic activity.
AGO Investigates Former Tokopedia CEO Alongside Nadiem Makarim
2 hari lalu
Attorney General's Office questioned former Minister of Education Nadiem Makarim and former Tokopedia President Melissa Siska Juminto as witnesses in the alleged corruption case related to the procurement of Chromebooks.
After GoTo Office Raid, AGO to Question Former Education Minister Nadiem Makarim Today
2 hari lalu
Indonesia's Former Minister of Education, Nadiem Makarim is scheduled to undergo questioning by the Attorney General's Office (AGO) today.
Jakarta Fair 2025 Records Rp7.3 Trillion Turnover with 5.9 Million Visitors
3 hari lalu
The Jakarta Fair 2025 event claims to have reached a turnover of Rp7.3 trillion with a total of 5.9 million visitors.
Today's Top 3 News: Indonesia Seeks Lower Tariffs Than Vietnam in Ongoing U.S. Negotiations
12 hari lalu
Here is the list of the top 3 news on Tempo English today.
One Big Beautiful Bill: Inside Trump's Latest Tax and Spending Proposal
14 hari lalu
President Donald Trump's Tax Cut and Spending Reduction Bill is viewed as more beneficial to high-income earners.
U.S. Senate Passes Trump's $3.3 Trillion Tax Cut and Spending Bill After Tie-Break Vote
15 hari lalu
The U.S. Senate approved Donald Trump's tax cut and spending bill with a 51-50 vote, passed by the tie-breaking vote from Vice President JD Vance.
