The Indonesian government, through the Directorate General of Taxes (DGT), is currently finalizing a new technical regulation regarding tax collection on foreign digital transactions used in Indonesia. The regulation will serve as the operational guideline for a digital tax system known as SPP-TDLN, a mechanism designed to collect taxes from cross-border digital transactions.
Director General of Taxes, Bimo Wijayanto, stated that the regulation is now in its finalization stage and is expected to be implemented soon as a technical guideline for international digital tax collection.
What is SPP-TDLN?
SPP-TDLN is a system developed to support tax collection on cross-border digital activities, including the use of foreign digital services, international platforms, and information exchanges conducted through the internet and other electronic media.
The legal foundation for this system is regulated under Presidential Regulation No. 68 of 2025. Under this regulation, the government appointed PT Jalin Pembayaran Nusantara (PT JPN) as the official operator of the SPP-TDLN system.
Responsibilities of PT JPN
As the system operator, PT JPN is responsible for several key functions, including:
- Conducting system testing and technical inspections
- Ensuring system security and operational stability
- Implementing digital transaction tax collection
- Maintaining data security and confidentiality
- Providing operational and funding support
- Coordinating with government authorities
- Ensuring compliance with applicable regulations
Strengthening Oversight of the Digital Economy
The government considers this system essential to strengthen supervision and increase state revenue from the digital economy, particularly transactions involving foreign companies. In addition, the system is expected to improve the efficiency, transparency, and accountability of digital tax collection processes.
In practice, PT JPN may also collaborate with other partners to support the operation of the digital tax collection system. Tax revenues collected through the system, including VAT from foreign digital transactions, will remain part of state revenue and must be deposited into the state treasury.