Indonesia Mandates 0.5% E-commerce Tax on SME Sellers

Published 12 hours ago• 1 minute read

E-commerce

The regulation, effective immediately, grants platforms 30 days to implement the withholding system after official notification.

Platforms meeting traffic and transaction thresholds including TikTok Shop, Tokopedia, Shopee, Lazada, Blibli, and Bukalapak must remit taxes directly to authorities.

The policy targets Indonesia’s “shadow economy,” aiming to formalize the booming digital sector, which recorded US$65 billion in gross merchandise value in 2024.

The Indonesian E-commerce Association (idEA) confirmed member compliance but raised concerns about the tight timeline, noting impacts on millions of sellers.

The move aligns with Southeast Asia’s push to regulate digital commerce, projected to reach US$150 billion by 2030 per Google-Temasek-Bain analysis.

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