Indonesia to Start E-Commerce Tax Collection on October 1

Indonesia will begin requiring e-commerce platforms to collect income taxes from sellers on October 1, moving up a timeline that had been pushed back by the previous finance minister, the head of the finance ministry's tax department said.

The decision reverses a delay ordered on August 5 by then-finance minister Purbaya Yudhi Sadewa, who cited concern that the measure could weaken purchasing power. The tax office had said the following day that collection would be postponed to November 1 and that any taxes already paid would be refunded.

"God willing, we will immediately activate the regulation and implementation. They are ready, we are ready," tax department head Bimo Wijayanto said, adding that collection would start October 1. "There's no drama."

The shift follows a reshuffle at the top of the finance ministry this week. Purbaya was removed from his post, and his deputy, veteran technocrat Suahasil Nazara, was named finance minister by President Prabowo Subianto — the third person to hold the role in less than two years. Sources said Purbaya had clashed with senior ministry officials, including Bimo, over the reassignment of hundreds of staff before his dismissal.

Several major platforms had earlier been designated as tax collectors, including Tokopedia, which is controlled by ByteDance's TikTok and partly owned by GoTo; Shopee, operated by Sea Limited; Lazada, backed by Alibaba; and Blibli.

Indonesia is Southeast Asia's largest economy and hosts a fast-growing e-commerce market. A report by Google, Singapore state investor Temasek and consultancy Bain & Co. estimates the sector's gross merchandise value at $71 billion in 2025, with projections of $140 billion by 2030.

The finance ministry and the tax office did not immediately respond to a request for comment.