Indonesian Political, Business & Finance News

Digital Trade Tax Target Set at Rp 16-Rp 24 Trillion Annually

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Taxation

The Directorate General of Taxes (DJP) at the Ministry of Finance is targeting a two-fold increase in tax revenue from the digital trade sector following the implementation of the Income Tax (PPh) Article 22 collection mechanism through marketplaces. The DJP estimates that receipts from this sector could reach between Rp 16 trillion and Rp 24 trillion per year.

Director General of Taxes Bimo Wijayanto stated that the target is based on projections of increased taxpayer compliance and improvements to the taxation system. “We hope it can increase by at least 100 percent, so around Rp 16 trillion to Rp 24 trillion a year,” Bimo said after a press conference at the DJP Head Office in South Jakarta on Wednesday, 1 July 2026.

According to Bimo, tax revenue from the digital trade sector has ranged from Rp 8 trillion to Rp 12 trillion per year over the past five years. The collection of PPh Article 22 by marketplaces is expected to boost taxpayer compliance, thereby increasing state revenue.

He noted that the projection has taken into account the results of compliance testing, improvements to the taxation system, and input from business actors, particularly MSMEs and marketplace operators.

Beyond increasing revenue, the new mechanism is expected to improve the accuracy of tax data through the Coretax system. Bimo said that disruptions to the Coretax system are being resolved, with issues affecting the case management feature, which had experienced slowdowns, addressed through a series of fixes implemented between 26 and 28 June 2026. The system is now returning to normal operation.

Bimo added that the DJP is continuously updating and improving the Coretax system. The results of the system updates will be tested by Minister of Finance Purbaya Yudhi Sadewa next week before being presented to the public. The DJP has also improved the efficiency of the Coretax algorithm, with source code development now handled internally rather than by vendors to allow for faster and more tailored improvements. The DJP has also simplified the Coretax user interface to make it easier to use.

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