Key facts
- Indonesia has introduced new taxes on e-commerce and influencers.
- The government is planning an excise duty on sugary drinks.
- These measures aim to increase state revenue to support President Prabowo Subianto's economic growth targets.
- Retailers criticize the postponement of marketplace tax collection, citing an uneven playing field.
- The Indonesian E-Commerce Association (idEA) respects the government's decision to postpone tax collection through marketplaces.
- Small businesses are concerned about the impact of tax changes on their cash flow.
Indonesia is intensifying its tax collection efforts, introducing new levies on e-commerce and "influencer" sales, and planning an excise duty on sugary drinks. These measures are part of a broader strategy to boost state revenue and fund President Prabowo Subianto's ambitious economic growth agenda.
However, the government's decision to postpone the implementation of marketplace tax collection has drawn criticism from bricks-and-mortar retailers. The Indonesian Retailers and Shopping Centers Association (Hippindo) argues that this delay perpetuates an uneven playing field, disadvantaging traditional businesses that already comply with tax regulations on both their offline and online sales. Hippindo chairman Budihardjo Iduansjah expressed disappointment, emphasizing the need for equal fiscal obligations for fair competition.
The Indonesian E-Commerce Association (idEA) respects the government's postponement of Income Tax Article 22 collection through marketplaces. idEA Chairman Budi Primawan stated that the association's marketplace members had made extensive preparations for the tax collection, including system adjustments and socialization with sellers. idEA hopes for continued policy certainty and clear communication between the government and industry stakeholders.
Sutrisno Iwantono, chairman of the Indonesian Independent Entrepreneurs Network, an organization representing micro, small, and medium enterprises (MSMEs), views the tax policy as fundamentally good for transparency and fiscal compliance. However, he stressed that successful implementation hinges on fairness, particularly for small businesses with thin profit margins, as tax mechanism changes could directly impact their cash flow. Edy Misero, Secretary General of the Indonesian MSME Association, noted that the implementation of the relevant tax regulation (PMK No. 37/2025) was initially scheduled for an earlier date.