Indonesia delays e-commerce seller tax to protect purchasing power

“We will postpone it for now until the economic situation and purchasing power improve,” Sadewa told reporters during a press conference in Jakarta.

The tax collection scheme was set to take effect on Aug. 1 under Minister of Finance Regulation No. 37/2025.

The policy designates e-commerce platforms (PMSE) as tax collectors for Article 22 Income Tax (PPh Article 22).

Prior to the postponement, Directorate General of Taxes head Bimo Wijayanto had granted a one-month transition period for four major platforms—Tokopedia, Shopee, Lazada, and Blibli—to reconfigure their technical systems to withhold the tax.

Under the regulatory framework, marketplace platforms would collect a 0.5 percent Article 22 Income Tax on a seller’s gross turnover, excluding value-added tax (VAT) and luxury goods sales tax.

Wijayanto clarified that the levy is an advance income tax payment rather than a new standalone tax, targeting only merchants with an annual gross turnover exceeding Rp500 million (US$31,250).

The government has not set a new implementation date, emphasizing that economic recovery and stronger consumer spending remain prerequisites before resuming the policy.

Translator: Muhammad Heriyanto, Yashinta Difa