Indonesia asks four e-commerce platforms to collect income tax from sellers

[JAKARTA] Indonesia’s tax office said on Wednesday (Jul 1) it has asked e-commerce marketplaces Tokopedia, Shopee, Lazada and Blibli to collect income taxes from sellers based on sales made on their platforms, with the policy to take effect from August.

The tax office said it has appointed Tokopedia – which is controlled by ByteDance’s TikTok and also partly owned by Indonesia’s biggest tech company GoTo Group – Sea’s Shopee, the Alibaba-backed Lazada and Blibli as platforms that must become tax collectors.

Sellers with turnover of 500 million rupiah (US$28,000) or less will be exempted from having taxes collected if they provide a letter to the tax office, according to the statement.

The finance ministry in 2025 issued a regulation requiring e-commerce platforms that meet certain criteria to collect and pass on income tax on sales made by small- and medium-sized sellers.

The regulation also requires these platforms to pass on information regarding sales to tax authorities.

After complaints from sellers and platforms, the policy was postponed to 2026.

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The platforms are now expected to comply with the regulation from Aug 1, giving them time to brief sellers and make other preparations, a tax office spokesperson said.

South-east Asia’s largest economy has a booming e-commerce industry, with an estimated gross merchandise value of US$71 billion in 2025 that is expected to grow to US$140 billion by 2030, according to a report by Google, Singapore state investor Temasek and consultancy Bain & Co. REUTERS