The government will soon impose taxes on e-commerce or online merchants after announcing Minister of Finance Regulation (PMK) No. 37 of 2025, which was enacted on July 14.
This policy has received full support from Commission VI of the Indonesian House of Representatives (DPR RI). However, they reminded the government not to burden consumers.
“The government’s policy to tax online merchants is a positive step that should be supported by many parties, but it should not burden consumers or complicate matters for taxpayers,” said a member of Commission VI of the DPR RI in a press statement.
It is known that the Minister of Finance has issued a new regulation appointing e-commerce platforms as tax collectors, effective from Monday, July 14, 2025.
Two criteria for online merchants subject to taxation are outlined in PMK No. 37 of 2025. First, those who receive income using a bank account or similar financial account and conduct transactions using an Indonesian internet protocol (IP) address or an Indonesian phone number.
Second, online merchants with a gross turnover exceeding Rp500 million per year will be subject to a 0.5% income tax (PPh) under Article 22.
Merchants with a turnover below Rp500 million are exempt from this levy.
Exemptions also apply to certain other transactions, such as online delivery and transportation services (ride-hailing), mobile credit sellers, and gold trading.
It was suggested that the tax mechanism collected through platforms like Shopee, Tokopedia, and other marketplaces should be made simple, especially for taxpayers who need to pay their dues.
In addition to being user-friendly, the mechanism should also ensure the security of online merchants’ data subject to taxation.
“This mechanism needs to be carefully designed by marketplace platforms and the government, potentially involving the Ministry of Finance, the Ministry of Communication and Digital Affairs, as well as online merchants themselves,” the statement added.
According to sources, the tax collection mechanism by marketplace platforms could take inspiration from online trade taxation models in other countries, such as Australia, South Korea, India, and China.
“The European Union also implements online taxation for several countries through the Mini One Stop Shop (MOSS) system, which aims to simplify tax collection and avoid complicating administrative processes for businesses,” the statement explained.
Additionally, it was emphasized that the primary goal of taxing online merchants is not only to increase state revenue but also to improve tax compliance and simplify tax administration.
“These two objectives must not be undermined, and new problems should not arise. This is what the relevant authorities must pay attention to,” the statement stressed.
“Beyond these two goals, taxing online merchants is also expected to promote fairness in transactions, whether in offline (conventional markets) or online marketplaces,” it concluded.
