TEMPO.CO, Jakarta - Indonesia's Ministry of Finance clarified that the application of Income Tax Article 22 (PPh 22) on e-commerce traders is not a new regulation.
Febrio Kacaribu, Director-General of Economic and Fiscal Policy, explained that this type of tax has long been applied to digital platforms such as Google and Netflix.
“This is not a new tax, it is a tax that is what it is,” said Febrio on Saturday, June 28, 2025.
The government is now focusing on involving e-commerce platforms as tax collectors. Febrio stated that traders with annual income below Rp500 million are not subject to the levy. He added that this move aims to improve tax compliance and administration.
“This reform will certainly be part of our annual revenue target,” he said.
Earlier, the Directorate General of Taxation (DJP) disclosed more details about the plan. Rosmauli, Director of Education, Services, and Public Relations at DJP, said the policy essentially shifts the tax payment mechanism. Previously, online sellers had to pay PPh 22 independently. Under the new system, the responsibility is transferred to the marketplaces that host the sellers.
“This policy does not change the fundamental principle of income tax,” Rosmauli said in Jakarta on Thursday, June 26. “It actually makes it easier for traders to meet their tax obligations, as the payment process is now integrated with the platform.”
The Ministry of Finance views this policy as a way to strengthen cooperation between the government and digital platforms, improve transparency, and ensure that businesses operating online contribute fairly to the national tax base.
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