Indonesia to Enforce eCommerce Platforms to Collect Taxes, Aiming for Fairer Business Landscape

Indonesia is preparing to introduce a groundbreaking policy that mandates eCommerce platforms to collect and remit taxes for their sellers, a strategy designed to boost government revenue and level the playing field between online marketplaces and brick-and-mortar retailers. Slated for potential announcement in July 2025, this regulation represents a transformative approach to taxing online sales within the country.

The policy specifically targets leading eCommerce entities, such as Alibaba Group Holding Ltd. (NYSE: BABA), among others, which may see significant changes in their operational frameworks in Indonesia. By centralizing tax collection at the platform level, the Indonesian government aims to simplify tax compliance and ensure equitable contributions from all retail sectors to the national economy.

This initiative is part of a broader global movement where governments are increasingly turning their attention to the digital economy as a means to expand their tax bases. Indonesia's approach could serve as a model for neighboring countries contemplating similar regulations to oversee the fast-growing eCommerce industry, highlighting the evolving landscape of digital taxation and its implications for businesses and governments worldwide.