Indonesia is preparing to implement a new tax collection mechanism for online marketplace, with online commerce platforms expected to begin collecting taxes from merchants starting in July 2026. The government insists that the policy does not introduce a new tax burden but instead seeks to create fairer treatment between online and conventional businesses.
Finance Minister Purbaya Yudhi Sadewa confirmed that the policy remains on track for implementation this year. According to him, the plan is likely to take effect in July, although he said he would conduct a final check with tax authorities regarding the timeline.
“Possibly starting in July. I will double-check with the tax office later. But I think that will be the case. This is not an additional tax,” Purbaya said after a meeting with the House of Representatives’ Budget Committee (Banggar) on Monday (June 29, 2026).
The policy is based on Finance Minister Regulation (PMK) No. 37 of 2025. The regulation requires marketplace providers to collect Article 22 Income Tax (PPh) amounting to 0.5% of the gross turnover generated by domestic merchants conducting transactions through their platforms.
Purbaya explained that the government sees the policy as necessary because many conventional business owners have raised concerns about unequal tax treatment between offline and online sellers.
According to him, physical businesses have long been required to pay value-added tax (VAT), while online merchants are perceived as not facing the same obligations.
“It is solely intended to create a more level playing field,” Purbaya said.
The implementation schedule was also previously confirmed by Deputy for Small Enterprises at the Ministry of Micro, Small, and Medium Enterprises, Temmy Satya Permana. Speaking during the UMKM Insight program broadcast on the Ministry of MSMEs’ YouTube channel and quoted on Thursday (June 25, 2026), Temmy said the policy is set to take effect on July 1.
“This is actually stipulated in a ministerial regulation that was issued last year but postponed. It will finally be implemented on July 1. Essentially, it only assigns platforms to act as tax collectors,” he said.
Temmy emphasized that the government’s objective is simply to equalize tax treatment between merchants operating online and businesses that have traditionally sold their products through physical stores.
He stressed that the tax rate itself remains unchanged. The policy does not impose higher taxes on online sellers or introduce any additional obligations beyond the existing framework.
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“Nothing is changing, there is no tax increase. Previously, this tax obligation was not collected directly by e-commerce platforms. Now, platforms are required to collect the tax and will later be directly connected to the Directorate General of Taxes through the system,” he said.
Under the new mechanism, marketplace operators will function as tax collectors on behalf of the government. The measure is intended to streamline tax administration while ensuring that businesses operating through digital platforms are subject to the same tax treatment principles as their offline counterparts.
As Indonesia’s digital economy continues to expand rapidly, the government maintains that the policy is designed not to add new costs for online merchants but to establish a more balanced and equitable business environment across both traditional and digital marketplaces.
