Foreign Marketplace Will Be Appointed To Collect Taxes From Indonesian Traders

Directorate General of Taxes (Photo: Doc. Antara)

JAKARTA - The Directorate General of Taxes (DJP) will appoint an overseas marketplace platform to collect income tax (PPh) 22 from online traders from Indonesia.

"There are local marketers such as in Singapore, China, Japan, or America, which turns out to be many Indonesians selling. We can appoint them to collect PPh 22 of 0.5 percent," said Tax Taxation Director I Hestu Yoga Saksama quoting Antara.

Yoga continued that the DGT had implemented a similar method in 2020 to appoint foreign marketplaces as trade providers through electronic systems (PPMSE) to collect value added tax (VAT).

So, the DGT believes that the same steps can be taken on the PPh 22 levy plan this time.

This is to avoid the risk of social jealousy from domestic traders.

"So that domestically they don't scream, then move all of them using overseas marketplaces," he said.

DGT claimed to have held hearings with a number of large marketplaces and hoped that they could start preparing systems and other technical needs.

"If you look at the one in 2020, it doesn't take long. If I'm not mistaken, two months the system has been completed. Those who are abroad, such as America and Europe, can be ready and finally determined. We believe there is no problem with that and can be implemented quickly," explained Yoga.

Finance Minister Sri Mulyani Indrawati signed PMK 37/2025 on June 11, 2025 and was promulgated on July 14, 2025 to appoint a local market as a PPMSE to collect taxes from online traders.

The amount of PPh 22 collected is 0.5 percent of the gross turnover received by traders in a year.

The levy is outside the value added tax (VAT) and sales tax on luxury goods (PPnBM).

The traders targeted for this policy are those who have a turnover of more than IDR 500 million, as evidenced by a new statement submitted to the appointed marketplace.

Meanwhile, traders who have turnover below IDR 500 million are free from this levy.

Exceptions also apply to a number of other transactions, such as expedition and online transportation services (online motorcycle taxis or ojol), credit sellers, to gold trading.