Understanding Indonesia’s New E-Commerce Tax
Jakarta’s Approach to the Shadow Economy
Indonesia is introducing a new rule to manage its shadow economy. This change will impact sellers and platforms in the growing online shopping sector.
What Is the New Rule?
The new rule requires e-commerce platforms to collect and send a portion of sellers’ sales income to the government. The tax office has proposed a 0.5% levy on sales by small and medium-sized sellers.
When Does It Start?
The tax office hasn’t announced a timeline yet. However, the rule could start as early as next month. They are still working on the details and will announce them soon.
Platforms’ Response
Indonesia’s e-commerce association, idEA, supports the government’s plan. They ask for a phased implementation to avoid disrupting the operations of millions of sellers.
Affected Platforms
The new rule will impact major online marketplaces, including:
- TikTok Shop and Tokopedia (run by ByteDance)
- Shopee (Sea Ltd)
- Lazada (backed by Alibaba)
- Blibli
- Bukalapak
Penalties for Late Reporting
Penalties for late reporting are under consideration. ByteDance, which operates Tokopedia, has asked for a realistic adjustment period.
Why Is This Happening?
The levy aims to improve oversight of vendors who operate outside the tax system. Many sellers find the filing requirements too complex.
The Future of E-Commerce in Indonesia
Indonesia’s e-commerce sector is booming. Its gross merchandise value is projected to more than double from $65 billion in 2023 to $150 billion by 2030.
