Apindo Calls for Stronger MSME Assistance as Marketplace Income Tax Takes Effect

The Indonesian Employers’ Association (Apindo) believes the implementation of the Income Tax (PPh) collection policy through marketplaces or lokapasar must be accompanied by enhanced capacity for micro, small, and medium enterprises (MSMEs). This step is considered crucial to ensure business actors can adapt while maintaining the sustainability of their enterprises. Apindo’s Head of MSME Affairs, Ronald Walla, stated that many MSMEs have experienced increased turnover but still lack adequate financial management capabilities. This situation leaves them potentially facing losses after accounting for operational costs and tax obligations. “To be effective, two things are needed. The policy can run, but capacity building and financial management must also progress,” Ronald told reporters after the kickoff of the Diplomat Success Challenge 2026 in Jakarta, as quoted on Sunday (12/7/2026). According to Ronald, assistance for MSMEs must be carried out comprehensively, from improving financial literacy to strengthening business management skills. He assessed that the primary need for MSMEs is not merely financing, but rather market information and market access to produce goods that meet consumer demand. Apindo is also encouraging the government to strengthen the tax support ecosystem for MSMEs, including by increasing the number of tax consultants serving micro and small enterprises. This measure is expected to improve tax compliance while making it easier for business actors to fulfil their obligations.