Jakarta – The Indonesian government is strengthening its digital taxation framework to keep pace with the rapid growth of the national digital economy. With Indonesia’s digital economy projected to reach US$146 billion by 2025, the Directorate General of Taxes (DJP) at the Ministry of Finance is accelerating the development of adaptive and progressive digital tax regulations.
Rosmauli, Director of Counseling, Services, and Public Relations at DJP, explained that the upcoming regulation will provide a solid legal foundation for regulating the tax obligations of digital businesses.
“This regulation will define the types of digital services subject to taxation, the collection mechanisms, and the documentation that businesses need to prepare to comply with digital tax obligations,” Rosmauli stated.
As of March 2025, tax revenues from the digital economy sector—including VAT collection from Electronic-Based Transactions (PMSE)—had reached IDR 34.91 trillion. However, significant potential remains untapped.
Ariawan Rahmat, Executive Director of the Indonesia Economic Fiscal (IEF) Research Institute, pointed out that the current threshold for appointing PMSE VAT collectors needs to be reconsidered.
“The current threshold of IDR 600 million per year may be too high. Lowering this limit would open opportunities to capture more small and medium-sized digital businesses that have so far escaped the tax radar,” Ariawan noted.
He also highlighted four strategic digital sectors that hold great potential but remain underregulated: crypto assets, peer-to-peer (P2P) lending, the gig economy, and artificial intelligence (AI). Ariawan emphasized that these sectors contribute significantly to the national economy and should become priorities in tax oversight.
“Digital taxation is inevitable, not optional. We can’t afford to wait any longer,” he stressed.
To support supervision and compliance, DJP is developing a new digital system called Coretax DJP. Vincentius Sukamto, Head of Counseling at DJP East Java Regional Office III, explained that this system will leverage advanced technologies such as AI and geotagging.
“Coretax will simplify access to information and strengthen DJP’s knowledge management. AI will assist in gathering and analyzing data to support tax base expansion and optimization,” Vincent stated.
However, significant challenges remain. The digital and financial literacy gaps continue to hinder program effectiveness. According to INDEF 2023 data, Indonesia’s digital literacy index stands at only 62%, while financial literacy is at 65%, according to the Financial Services Authority (OJK).
In response, DJP is promoting collaboration with academics, tax centers, and tax consultants. Educational programs like Business Development Services (BDS) have also been launched to help MSMEs grow digitally and understand their tax obligations.
In the same forum, Vaudy Starworld, Chairman of the Indonesian Tax Consultants Association (IKPI), emphasized the importance of innovation in the tax profession.
“We encourage the emergence of Taxologists—tax consultants who are skilled in technology and capable of leading digital taxation innovations,” Vaudy said.
Indonesia’s digital taxation transformation now serves as a gateway to a fiscal system that is fairer, more transparent, and sustainable. The government remains committed to ensuring that all sectors, including digital, contribute equitably to the nation’s progress.