NYREADERS.COM - Indonesia is preparing to implement new regulations that would require major e-commerce platforms such as TikTok Shop, Shopee, Tokopedia, and Lazada to withhold taxes on behalf of their sellers, Reuters reported Tuesday, citing industry sources and a government document.
The policy, expected to be announced as early as next month, would compel platforms to collect a 0.5 percent tax on sales income from sellers with annual turnover between Rp 500 million and Rp 4.8 billion ($30,600–$294,000). The move aims to improve compliance, offset a revenue decline, and align online commerce with traditional retail tax burdens.
Indonesia's Finance Ministry, which will issue the regulation, declined to comment. The proposed directive has drawn pushback from digital platforms, with concerns over administrative costs and system readiness following disruptions caused by a recent tax system upgrade.
If enacted, the policy could impact millions of sellers and reshape compliance in a sector projected to more than double in value from $65 billion in 2024 to $150 billion by 2030, according to a joint report by Google, Temasek, and Bain & Co.
