The government is expanding the scope of Value Added Tax (VAT) collection on foreign digital transactions by involving around 30 additional platforms from the banking and financial technology (fintech) sectors through the Foreign Digital Transaction Tax Collection System (Sistem Pemungutan Pajak atas Transaksi Digital Luar Negeri/SPP-TDLN).
Chairman of the Advisory Board of the Indonesian Chamber of Commerce and Industry (Kadin), Hashim Djojohadikusumo, stated that the expansion of digital tax collection will begin on November 9, 2026, involving state-owned banks, private banks, fintech companies, and e-commerce platforms.
"The digital tax collection will begin on November 9, 2026, involving all state-owned and private banks, fintech companies, as well as electronic commerce platforms such as Shopee, Lazada, and GoTo," Hashim said during the opening of the 2026 Kadin National Leadership Meeting at Hotel Borobudur Jakarta, Thursday (Oct 29, 2026).
The policy is not a new tax imposition. The Directorate General of Taxes (DGT) at the Ministry of Finance has implemented the SPP-TDLN since September 25, 2026, as a mechanism for collecting VAT on the utilization of digital goods and services from abroad in Indonesia.
The system is regulated by Presidential Regulation Number 68 of 2025 and detailed in Minister of Finance Regulation (Peraturan Menteri Keuangan/PMK) Number 49 of 2026. Its scope covers the utilization of intangible taxable goods and taxable services from outside the customs area within the customs area.
Transactions that can be covered under this mechanism include the purchase of software, applications, cloud computing services, streaming services, digital entertainment, artificial intelligence (AI)-based services, and online games.
Not all transactions made through digital platforms will automatically be subject to VAT via this system. The collection still depends on meeting the criteria for VAT objects and foreign digital transaction provisions as regulated in PMK 49/2026.
The implementation of SPP-TDLN is motivated by the development of cross-border digital transactions, which allows consumers in Indonesia to enjoy goods and services from foreign providers without the physical transfer of goods.
Before the SPP-TDLN was implemented, the government had collected VAT on the utilization of foreign digital goods and services through the Trade Through Electronic Systems (PMSE) mechanism. The presence of SPP-TDLN is intended to complement this mechanism, primarily by reaching transactions that have not yet been subject to VAT through the PMSE scheme. Thus, a single transaction will not be subject to double VAT collection.
DGT Prepares Additional 30 Issuers
Director General of Taxes Bimo Wijayanto previously stated that the government is preparing to add 30 issuers from the banking and fintech sectors to the system.
The DGT has held meetings with several platforms to discuss the readiness of their payment infrastructures and respective company systems before being designated as VAT collectors.
However, the addition of issuers will not be done simultaneously. DGT will consider the infrastructure readiness of each bank and fintech company before establishing them as the VAT-collecting entities.
In the initial stage of the SPP-TDLN implementation, the government involved six issuers, namely PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank Mandiri (Persero) Tbk, PT Bank Negara Indonesia (Persero) Tbk, PT Bank Tabungan Negara (Persero) Tbk, PT Bank Syariah Indonesia Tbk, and PT Fintek Karya Nusantara (LinkAja).
In addition to encouraging banks and fintechs to prepare, DGT is also coordinating with the Financial Services Authority (OJK) and Bank Indonesia (BI). The government is also encouraging international payment networks Mastercard and Visa to promptly integrate with the SPP-TDLN.
Under this system, an issuer is a bank or non-bank institution that provides services to facilitate payments for foreign digital transactions. The available payment information is utilized to help identify transactions that meet the VAT collection criteria.
Through this mechanism, VAT collection, remittance, and reporting are expected to be more seamlessly integrated with the payment process. Therefore, the government can expand supervision over cross-border digital transactions while improving the effectiveness of tax collection.
For consumers, implementing SPP-TDLN does not mean additional tax levies beyond the VAT. The system is simply a mechanism to collect VAT on eligible foreign digital transactions, therefore the public needs to pay attention to the tax information on their payment receipts whenever utilizing digital services from foreign providers.
The expansion of SPP-TDLN is expected to create more equitable tax treatment between domestic and foreign digital goods and services providers, while simultaneously strengthening the effectiveness of cross-border transaction supervision.
Also Read:
Assessing the Impact of SPP-TDLN on Businesses
DGT Launches SPP-TDLN to Expand VAT Collection on Digital Transactions
Indonesia Changes VAT Collection for Cross-Border Digital Transactions
Writer: Fiorentina Renata Trixie| Editor: Thomas Rizal
