Jakarta — The Indonesian government, through the Directorate General of Taxes (DJP) under the Ministry of Finance, has affirmed that the new policy regarding the collection of Article 22 Income Tax (PPh Pasal 22) on digital transactions by marketplaces will not create additional inflationary pressure. Instead, the move is expected to strengthen the national taxation system and encourage compliance without placing a significant burden on consumers.
Yon Arsal, Expert Staff to the Minister of Finance for Tax Compliance, explained that concerns over potential price hikes as a result of the policy will be naturally mitigated by market mechanisms.
“I don’t think there will be an immediate transfer of the tax burden to consumers. In the marketplace environment, competition is tight. If sellers pass the tax directly onto the selling price, they risk losing competitiveness,” Yon said.
He emphasized that the policy does not represent a new tax but rather a simplification of the reporting and payment mechanism for digital business operators.
“Previously, online sellers were required to remit their own taxes. With this new policy, the obligation will be collected directly by the marketplace where they sell, making the process more practical and accountable,” he added.
According to Yon, the dynamics of the digital marketplace cannot be reduced to simple price logic.
“When a seller is taxed, it doesn’t automatically mean that prices must rise. That’s not the only option. Many other factors are considered by sellers in setting their prices,” he stressed.
Responding to industry concerns, the Indonesian E-Commerce Association (idEA) stated in a press release that they understand the spirit of the policy as a means to enhance tax compliance within the digital sector. However, they also emphasized the need for comprehensive communication from DJP and an adequate transition period to allow businesses, particularly MSMEs, to adapt.
idEA Secretary General Budi Primawan explained that the policy does not introduce a new tax burden but changes the mechanism of collection.
“We hope its implementation will be fair and proportional, taking into account the readiness of digital infrastructure and the capacity of MSME players,” he said.
Budi also noted that marketplaces will need to provide systems for uploading signed and stamped revenue declaration documents from sellers. This will require technical education and system readiness, including from the digital platforms themselves.
The DJP welcomed feedback from idEA and other stakeholders. The government is committed to implementing the policy gradually, prioritizing fiscal fairness and strengthening Indonesia’s digital economy foundation without creating new inflationary pressures.
