Indonesia is preparing to introduce a policy that mandates eCommerce platforms to collect and remit taxes on behalf of their sellers, a strategy designed to boost government revenue and level the playing field between online marketplaces and traditional retail stores. Expected to be announced by July 2025, this regulation represents a pivotal change in the taxation of online sales within the country.
The policy specifically targets leading eCommerce entities, such as Alibaba Group Holding Ltd. (NYSE: BABA), and could significantly impact their operations in Indonesia. By centralizing tax collection at the platform level, the Indonesian government aims to simplify tax compliance and guarantee that all segments of the retail industry contribute equitably to the national economy.
This initiative is part of a broader international movement where governments are turning their attention to the digital economy as a means to expand their tax bases. Indonesia's approach may serve as a model for neighboring countries looking to implement similar regulations in the fast-growing eCommerce sector.
