Indonesia to Introduce New E-Commerce Tax: What It Means for Online Sellers

As part of its efforts to boost state revenue, the Indonesian government is set to roll out a new tax policy targeting sellers on e-commerce platforms. This move could significantly reshape the digital business landscape in a country where online commerce has grown rapidly with minimal direct tax collection at the seller level.

💡 What’s Changing?

Under the upcoming regulation, all e-commerce platforms will be required to withhold taxes from sellers whose annual revenue ranges between IDR 500 million and IDR 4.8 billion. The proposed withholding rate is 0.5% of total sales revenue.

📦 Who Will Be Affected?

The regulation will apply to major players in Indonesia's e-commerce market, including:

• Tokopedia and TikTok Shop (owned by ByteDance)

• Shopee (Sea Limited)

• Lazada (backed by Alibaba)

• Blibli and Bukalapak

Millions of small and medium-sized sellers who rely on these platforms as their primary sales channels will be directly impacted.

🛒 Why Is the Government Doing This?

The new rule is designed to improve national tax collection and create a level playing field between online businesses and physical stores, which have long been subject to direct tax obligations.

📉 Industry Response

Sources close to the matter say many platforms have voiced concerns, citing issues such as:

• Increased administrative burden

• Risk of sellers abandoning online platforms

• Potential drop in transaction volume

Despite resistance, the policy is expected to be officially announced as early as next month.

🔍 Are you an online seller?
Now is the time to review your sales strategy and bookkeeping practices. Keeping accurate financial records will help you manage your tax obligations and avoid surprises.

Regulatory shifts in the e-commerce space are inevitable. But with the right preparation and sound understanding, businesses can stay compliant and continue to grow. This is the moment for Indonesia’s digital entrepreneurs to step up — with better tax management and financial discipline.

Satra Sinar Abadi Group