The Directorate General of Taxes (DGT) of the Ministry of Finance began operating the Foreign Digital Transaction Tax Collection System (Sistem Pemungutan Pajak Transaksi Digital Luar Negeri/SPP-TDLN) on September 25, 2026. The system is designed to expand tax collection on digital transactions made by Indonesian consumers through foreign platforms.
Before its official launch, SPP-TDLN underwent sandboxing and stabilization. Director General of Taxes Bimo Wijayanto said the system is now operational and that notifications have been issued to international parties.
“The SPP has been activated, and the international notification has also been issued,” Bimo said when met at the Parliament Complex in Jakarta on Tuesday (Sept. 29, 2026).
SPP-TDLN forms part of the mechanism for collecting value-added tax (VAT) on cross-border digital transactions. Its implementation is based on Ministry of Finance Regulation (PMK) No. 49 of 2026 on Procedures for Collecting Value-Added Tax on Foreign Digital Transactions Conducted Through the Foreign Digital Transaction Tax Collection System.
In the initial stage of its implementation, SPP-TDLN has involved five banks and one financial technology (fintech) company.
Bimo explained that many foreign platforms continue to offer goods and services to Indonesian consumers but have not yet been covered by VAT collection under the Electronic System-Based Trading (Perdagangan Melalui Sistem Elektronik/PMSE) mechanism.
“Beyond those already subject to VAT under the PMSE mechanism, there are still several, in fact many, foreign platforms providing goods and services purchased by Indonesian consumers,” he said.
Revenue Potential
VAT collection on digital transactions to date has generated around Rp12 trillion in revenue. Bimo said the implementation of SPP-TDLN is expected to broaden the coverage and improve the accuracy of tax collection, although the DGT has yet to calculate the potential additional revenue in detail.
“Clearly, we expect it to add to the approximately IDR 12 trillion that we have already collected. With the SPP-TDLN system, however, the collection will become more accurate,” he said.
According to Bimo, the number of foreign platforms registered as tax collectors remains far smaller than the overall number of platforms serving consumers in Indonesia.
To date, around 260 platforms have registered as tax collectors. Meanwhile, the number of foreign platforms providing goods and services to Indonesian consumers is estimated to be in the thousands.
“If I am not mistaken, 260 have registered to collect the tax. This is still very small because there are thousands of platforms,” Bimo said.
With SPP-TDLN now operational, the government is expanding the VAT collection mechanism for cross-border digital transactions, including transactions through foreign platforms that were previously not covered by the PMSE VAT collection mechanism.
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