Indonesia will require e-commerce platforms to collect and forward a 0.5% income tax on sales made by small- and medium-sized sellers, under new regulations published Monday by the finance ministry.
The rule applies to sellers with annual turnover between 500 million rupiah and 4.8 billion rupiah, or about $30,800 to $296,000. Platforms that meet certain thresholds must also share seller information with tax authorities.
The ministry said it will notify platforms if they meet the criteria, which are based on site traffic and total transaction value over the past 12 months. Although the regulation takes effect immediately, companies will have one month to comply.
Indonesia’s tax office says the rule is aimed at addressing the shadow economy. The e-commerce association idEA has said members will follow the regulation but raised concerns about the short implementation timeline and its impact on millions of sellers.
Indonesia’s major e-commerce operators include TikTok Shop, Tokopedia, Shopee, Lazada, Blibli, and Bukalapak. The country’s e-commerce sector recorded an estimated $65 billion in gross merchandise value last year and is expected to grow to $150 billion by 2030.
