JAKARTA - The Ministry of Finance confirmed that US-based digital service companies are still subject to value added tax (VAT) on trade through an electronic system (PMSE).
Director General of Economic and Fiscal Strategy of the Ministry of Finance, Febrio Kacaribu, in the APBN KiTa February 2026 edition press conference in Jakarta, Monday, explained that the PMSE VAT is different from the type of tax referred to in the Agreement on Reciprocal Trade (ART) Indonesia and the US.
In the agreement, it is stipulated that the Indonesian Government will not impose a digital or similar service tax that discriminates against US companies legally (de jure) or factually (de facto).
However, the Indonesian Government still imposes VAT on US companies as long as the provisions are applied equally to other countries.
"This PMSE will continue because it is non-discriminatory in nature. So, the VAT collected by the Directorate General of Taxes (DJP) against PMSE will continue," said Febrio.
He underlined that the digital tax referred to in the ART needs to be distinguished from taxes in accordance with Indonesian laws and regulations.
"The digital tax referred to by this agreement and also often debated globally is the taxation of hundreds of large technology companies and the majority of them are from the US. This is limited to a few dozen companies, such as Google, Netflix, and so on," he explained. reported by ANTARA, Snein, February 23.
Meanwhile, the PPN PMSE is a levy on foreign digital product/service transactions to consumers in Indonesia through an electronic system.
On that basis, Febrio ensured that the points of agreement only had a limited impact on tax revenue in Indonesia.
Based on the latest records of the Ministry of Finance, the total PPN PMSE deposit from 2020 to 2025 reached IDR 34.54 trillion as of November 30, 2025, which was submitted by 215 PMSE from 254 designated companies.
The PPN PMSE is one of the tax components of the digital economy business sector, along with the crypto tax, fintech tax (P2P lending), and the Government Procurement Information System (SIPP) tax.
The total deposit from the digital economy business sector reached Rp. 44.55 trillion as of November 30, 2025.
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