Indonesia to start taxing e-commerce transactions from February 2026

Director General of the Indonesian Directorate General of Taxation Bimo Wijayanto announced on October 9 that the country will begin collecting taxes on e-commerce transactions next year.

A Jakarta resident uses a smartphone to shop on a local e-commerce platform (Photo: jakartapost.com)

He said the E-commerce Tax will become effective from February 2026, adding that the four major online marketplaces, namely Blibli, Lazada, Shopee, and Tokopedia, have been appointed as income tax (PPh) collectors under Article 22.

Finance Minister Purbaya Yudhi Sadewa had earlier stated that the implementation of the e-commerce tax would be postponed. However, Bimo has now confirmed the official start date.

Appointing the above-mentioned e-commerce platforms as entities responsible for collecting income tax under Article 22 is expected to help micro, small, and medium-sized enterprises (MSMEs) operating on these platforms fulfill their tax obligations more easily.

According to the Directorate General of Taxation, this mechanism will improve compliance among online sellers and support a fairer tax system within the digital economy.

Source: VNA