The government has officially tightened tax oversight in the digital sector. Starting September 25, 2026, the Directorate General of Taxes (DGT / DJP) implemented a new system known as the Tax Collection System on Overseas Digital Transactions (SPP TDLN).
Under this system, overseas transactions for digital goods and online services that have previously gone untracked or have not collected Value Added Tax (VAT / PPN) will now be automatically taxed right when the payment is processed.
Previously, digital product tax collection relied on the PMSE VAT (PPN PMSE) scheme, where foreign companies (such as giant subscription platforms) were directly appointed by the DGT to collect VAT from consumers.
However, many foreign digital platforms used by Indonesian consumers were not yet officially registered as VAT collectors. This loophole is now being closed through the SPP TDLN.
“Beyond transactions where VAT is collected via the PMSE VAT mechanism, there are still many foreign platforms providing goods and services utilized by consumers in Indonesia,” stated Director General of Taxes Bimo Wijayanto at the DPR RI Building on Monday (September 29, 2026).
To automate the collection process, the government appointed payment intermediary financial institutions. Referring to Minister of Finance Regulation Number 49 of 2026 (PMK 49/2026), the DGT has designated 5 banks and 1 fintech company as tax-collecting partners.
Going forward, these banks or fintech platforms will directly withhold VAT whenever they detect purchases of taxable foreign digital goods or services.
- Taxable Objects: Purchases of digital products (such as software, e-books, and digital assets) as well as foreign digital services consumed by users in Indonesia.
This measure is expected to boost state tax revenue in the digital sector—which currently stands around IDR 12 trillion—while simultaneously creating a level playing field between local and foreign businesses.