10 Banks Begin Collecting VAT on Foreign Digital Transactions; How Much Will the State Earn?

Minister of Finance Purbaya Yudhi Sadewa has revealed that ten banks in Indonesia have begun implementing the Foreign Digital Transaction Tax Collection System (SPP-TDLN) as of Thursday, 10 September 2026.

Purbaya stated that the ten banks consist of four state-owned banks (Himbara) and six private banks. “All of the four major state banks are included, alongside several private banks. There are ten in total, which is quite a significant number,” Purbaya said at his office in Jakarta.

The implementation of the SPP-TDLN, which began today, is currently limited to a system reliability trial. The SPP-TDLN system is managed by PT Jalin Pembayaran Nusantara.

Over the coming week, the effectiveness of the collection system will be monitored before it is expanded to all banks, which will serve as the entities responsible for withholding, collecting, depositing, and reporting VAT on digital transactions. “We are testing it first to see how it performs over the next few decades. After that, we will expand it to other banks. Ultimately, all banks will participate in this programme,” he explained.

Purbaya noted that he will receive the first reports on the collection results next month. He emphasised that fintech companies and other private banks will also join the programme gradually once the system is deemed fully ready. “Even though it is ready now, I want to see what the results look like over the next month,” Purbaya asserted.

The implementation of the SPP-TDLN refers to Minister of Finance Regulation (PMK) Number 49 of 2026, which regulates the procedures for collecting VAT on foreign digital transactions. This regulation, effective since 20 July 2026, clarifies that the organiser of the SPP-TDLN is the legal entity designated in Presidential Regulation (Perpres) 68/2025, namely PT Jalin Pembayaran Nusantara.

The SPP-TDLN will impose VAT on the use of digital goods (intangible taxable goods) and digital services (taxable services) from abroad that are consumed within the country. Types of digital goods subject to VAT include entertainment streaming services, online games, software or applications, e-books, stock photos, and more.

Under the PMK, there are generally two types of transactions covered by the SPP-TDLN scheme: first, the use of intangible taxable goods from outside the customs area within the customs area; and second, the use of taxable digital services from outside the customs area within the customs area.

Moving forward, VAT will be collected by banks acting as third parties, provided that the SPP-TDLN organiser has confirmed to the bank that the foreign digital transaction is subject to VAT. The VAT collected will be 11/111 of the price or payment for the intangible goods or services, inclusive of VAT.

Director General of Taxes Bimo Wijayanto previously stated that the implementation of the SPP-TDLN will significantly increase digital tax revenues in Indonesia. “We are confident that with the implementation of the SPP-TDLN, we will increase the tax base by at least almost twofold, from the current range of IDR 8 trillion to IDR 12 trillion from digital trading. We hope it can double through digital transactions,” said Bimo.