E-commerce Platforms Ready to Withhold Seller Tax, Await DJP Written Directive

The Indonesian E-Commerce Association (idEA) has stated its support for the government’s efforts to increase tax compliance and ensures it will comply with all applicable provisions regarding the policy. However, industry players have yet to receive a written decision from the Directorate General of Taxes (DJP).

The General Chairman of idEA, Budi Primawan, stated that the association is currently continuing its coordination with the Directorate General of Taxes to ensure the implementation of the policy proceeds smoothly.

“In principle, idEA supports the government’s efforts to increase tax compliance and will comply with the applicable regulations,” Budi said in a statement received by CNBC Indonesia on Tuesday (30/06/2026).

He noted that idEA hopes the administrative mechanism implemented will be effective, simple, and provide certainty for all parties involved, including the government, digital platforms, and sellers.

Furthermore, Budi revealed that idEA is still waiting for a written decision from the DJP containing the results of discussions held with digital platforms regarding various technical aspects of the policy’s implementation.

He explained that, based on previous discussions, digital platforms are expected to have approximately one month from the official enactment of the implementing regulations to adjust their systems before commencing the tax collection mechanism.

“However, this is still awaiting official determination,” he clarified.

Additionally, idEA is awaiting communication and socialisation from the Directorate General of Taxes to taxpayers, particularly sellers, so they can understand the applicable mechanisms and prepare themselves accordingly.

The collection is based on Minister of Finance Regulation (PMK) Number 37 of 2025, which mandates marketplace providers to collect Article 22 Income Tax (PPh) at a rate of 0.5% of the gross turnover of domestic traders transacting on their platforms.

The collection aims solely to equalise the tax application between online traders and conventional traders who conduct business physically. The rate remains consistent between traders selling goods online and those operating offline.