Indonesia's Directorate General of Taxes (DJP) has clarified the government's digital tax collection policy following statements that banks, financial technology (fintech) companies and e-commerce platforms would begin collecting digital taxes on 9 November 2026 (09/11).

The DJP explained that the policy refers to the Foreign Digital Transaction Tax Collection System (SPP-TDLN). The system does not introduce a new tax, change the existing Value Added Tax (VAT) rate or apply to all foreign transactions.

Inge Diana Rismawanti, Director of Tax Education, Services and Public Relations at the DJP, said the system aims to organise VAT collection on qualifying foreign digital transactions through a fairer, more orderly and technology-based mechanism.

"SPP-TDLN is a government initiative to organise VAT collection on foreign digital transactions in a fairer, more orderly and technology-based manner," Inge told reporters on Monday, 2 November 2026.

Indonesia Digital Tax: DJP Clarifies Which Companies Will Collect VAT

The clarification followed remarks by Hashim Djojohadikusumo, Chairman of the Advisory Board of the Indonesian Chamber of Commerce and Industry (Kadin).

Hashim previously stated that all state-owned and private banks, fintech companies and e-commerce platforms, including Shopee, Lazada and GOTO, would participate in digital tax collection starting 9 November 2026.

However, Inge did not confirm that all the institutions mentioned by Hashim had been appointed as tax collectors, also known as issuers, under SPP-TDLN.

She explained that other potential issuers were still undergoing a stabilisation period. The DJP would announce new appointments through its official channels once all preparation stages had been completed.

Which Transactions Are Subject to Indonesia's Digital Tax?

The DJP emphasised that not all foreign transactions are subject to VAT under SPP-TDLN. The system only applies to foreign digital transactions that meet the requirements for VAT taxation under applicable regulations.

Inge also clarified that fund transfers and remittances do not automatically become subject to VAT.

The system is not intended to impose VAT on personal fund transfers or money sent by members of the public.

SPP-TDLN Designed to Prevent Double Taxation

The DJP said SPP-TDLN was designed to provide tax certainty and ensure equal treatment between domestic and foreign businesses.

The system also includes a mechanism to prevent double taxation. If VAT on a foreign digital transaction has already been collected by an appointed Electronic System-Based Trading (PMSE) business, the same transaction will not be charged again through SPP-TDLN.

In addition, the system is designed to ensure that data is handled securely, used within limited purposes and processed according to applicable regulations.

For consumers, the mechanism is expected to simplify tax administration. Consumers will not need to independently manage VAT payment and reporting for qualifying foreign digital services when the tax is supposed to be collected by an appointed institution.

System Testing Completed Before Full Implementation

Before full implementation, SPP-TDLN underwent testing in a sandbox environment and a stabilisation period.

These stages were conducted to ensure the readiness of the system, business processes, data exchanges and integration with the institutions involved in tax collection.

Five State-Owned Banks and LinkAja Appointed as Initial Tax Collectors

On 25 September 2026, Director General of Taxes Bimo Wijyanto appointed six institutions as VAT collectors under SPP-TDLN.

The appointments include five members of the Association of State-Owned Banks (Himbara) and one financial technology company.

The five banks are:

• PT Bank Rakyat Indonesia (Persero) Tbk.
• PT Bank Mandiri (Persero) Tbk.
• PT Bank Negara Indonesia (Persero) Tbk.
• PT Bank Tabungan Negara (Persero) Tbk.
• PT Bank Syariah Indonesia.

The sixth institution is PT Fintek Karya Nusantara, which operates the LinkAja platform.

These six institutions were appointed as the initial issuers responsible for collecting VAT under the system.

The DJP has not yet confirmed additional appointments involving private banks, other fintech companies or e-commerce platforms mentioned by Hashim.

Hashim Says Digital Tax Collection Will Strengthen State Revenue

Hashim said the expansion of digital tax collection was part of President Prabowo Subianto's administration's efforts to increase Indonesia's tax collection coverage.

Speaking at the opening of Kadin's 2026 National Leadership Meeting in Jakarta on Thursday, 29 October 2026, he said banks, fintech companies and e-commerce platforms would begin participating in the collection of digital taxes on 9 November 2026.

"Digital taxation, digital tax, will soon be implemented on 9 November. All state-owned banks, private banks and all fintech companies, including Shopee, Lazada, GOTO and others, must participate in collecting and remitting taxes that have not been collected so far," Hashim said.

He argued that expanding tax collection was an initial step towards improving the country's fiscal capacity.

Hashim claimed that nearly Rp10,000 trillion in Indonesian wealth was circulating in the underground market and remained beyond the reach of tax authorities.

He also highlighted Indonesia's government revenue-to-GDP ratio, which he placed at approximately 12%.

"Government revenue is recorded at only 12% of GDP. When we compare ourselves with neighbouring countries and more distant countries, we are at 12%, while our neighbour Cambodia is at 18% and India is at 20%. A distant country in Africa is at 16%. All these countries have government revenues well above ours," he said.

Hashim, who is President Prabowo's younger brother, said the expansion of digital tax collection was part of the government's efforts to increase state revenue.

PHOTO: ANTARA/LAZAADA

This article was created with AI assistance.

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