E-commerce platforms asked to collect income tax from sellers in Indonesia

Indonesia is stepping up digital tax enforcement. The country's tax office has formally asked major e-commerce platforms, including Tokopedia, Shopee, Lazada, and Blibli, to begin collecting income tax from sellers operating on their platforms. The policy is set to take effect from August 1, 2026.

The designated platforms have been officially appointed as tax collectors, responsible for withholding income tax on sales made by small and medium-sized sellers and passing that information on to tax authorities. Sellers with an annual turnover of 500 million rupiah, equivalent to approximately US$28,000, or less can apply for an exemption by providing a letter to the tax office.

This move follows a regulation issued by Indonesia's finance ministry last year. The original implementation was delayed following complaints from both sellers and platforms. The August 1 date gives the platforms time to brief their sellers and make necessary technical preparations, according to a tax office spokesperson.

To put this in context, Indonesia's e-commerce sector is one of the most significant in the region. A report by Google, Temasek, and Bain and Co estimated the country's gross merchandise value at $71 billion in 2025, with projections reaching $140 billion by 2030.

For businesses and investors operating across Southeast Asia, this development is a reminder that digital commerce is increasingly subject to formal tax frameworks throughout the region, and staying compliant requires proactive attention to local regulations.

At SLF Legal in Koh Samui, we work with expats, investors, and business owners navigating the legal and regulatory landscape in Thailand and across Southeast Asia. Whether you are running an online business, managing cross-border investments, or planning your next venture in the region, understanding how tax obligations are evolving in neighbouring jurisdictions matters. We are here to help you stay informed and protected.

Source: Bangkok Post, published July 1, 2026.