The Indonesian government, through Finance Minister Purbaya Yudhi Sadewa, plans to appoint e-commerce platforms (marketplaces) as collectors of Article 22 Income Tax (PPh 22) starting in the second quarter of 2026.
This policy had previously been postponed in 2025 due to economic uncertainty. However, as economic conditions improve, the government is now preparing to move forward with its implementation.
Why the Policy Was Delayed
Initially, the policy was expected to be implemented last year. However, the government decided to delay it to maintain economic stability during a period of slowdown.
With the current economic recovery showing positive signs, the government will proceed with the policy if conditions remain stable through Q2 2026.
Policy Objective: Fairer Business Competition
The main goal of appointing marketplaces as tax collectors is to create a more level playing field between online and offline businesses.
The government also highlighted the challenges faced by local sellers in competing with low-priced imported goods, particularly from China, which dominate many online platforms.
Article 22 Income Tax Scheme
Under PMK 37/2025, marketplaces will be required to collect:
0.5% of the gross revenue (turnover) of domestic sellers operating on their platforms.
This tax is not final, meaning it can be:
- Credited against the seller’s annual tax liability, or
- Used to reduce their final income tax obligations
Criteria for Marketplaces Subject to the Policy
Marketplaces will be appointed as tax collectors if they:
- Use an escrow account system, and
- Meet at least one of the following criteria:
- Annual transaction value exceeding IDR 600 million (or IDR 50 million per month), or
- Annual traffic exceeding 12,000 users (or 1,000 users per month)
Initial Focus: Low-Cost Imported Goods
The government indicated that the initial implementation will prioritize online sellers offering low-priced imported goods, especially from China.
This measure is intended to protect local businesses while also improving tax compliance within the digital economy.
Conclusion
The implementation of Article 22 Income Tax collection through marketplaces represents a strategic move by the government to:
- Increase state revenue
- Ensure fair competition between online and offline sellers
- Strengthen tax compliance in the digital sector
With the policy expected to take effect in mid-2026, online sellers are encouraged to start preparing and understanding the mechanism to ensure smooth adaptation.