Indonesia to begin e-commerce tax collection from October 1, media reports
XLY•Indonesia to start e-commerce tax collection from October 1
JAKARTA, Sept. 17 (Reuters) - Indonesia will begin making e-commerce platforms collect income taxes from sellers starting October 1, a month earlier than previously announced, local media reported on Thursday, citing the tax chief.
The move reverses a delay ordered by the previous finance minister and follows a shake-up at the top of the finance ministry this week.
The finance ministry and the tax office did not immediately respond to a Reuters request for comment.
Some of the biggest platforms operating in Southeast Asia's largest economy were originally tasked by the tax office to start collecting taxes from sellers beginning in August, but then-finance minister Purbaya Yudhi Sadewa ordered a delay on August 5 because of concern it might hurt purchasing power.
The next day, the tax office said the policy would be delayed to November 1 and promised taxes that were already paid would be refunded.
Purbaya was sacked this week and his deputy, veteran technocrat Suahasil Nazara, was named as President Prabowo Subianto's third finance minister in less than two years.
"God willing, we will immediately activate the regulation and implementation. They are ready, we are ready," the head of the finance ministry's tax department, Bimo Wijayanto, said, according to CNBC Indonesia, adding the collection will begin October 1. "There's no drama."
Sources told Reuters Purbaya had clashed with top officials in his ministry prior to his removal, including with Bimo, over the reshuffling of hundreds of officials at the ministry.
Tokopedia, controlled by ByteDance's TikTok and partly owned by Indonesia's biggest tech company GoTo GOTO.JK, together with Sea Limited's SE.N Shopee, the Alibaba-backed 9988.HK Lazada, and Blibli BELI.JK, had previously been appointed as tax collectors.
Indonesia has a booming e-commerce industry, with an estimated gross merchandise value of $71 billion in 2025 that is expected to grow to $140 billion by 2030, according to a report by Google, Singapore state investor Temasek and consultancy Bain & Co.
