The Indonesian Ministry of Finance said that the Government will impose new tax on e-commerce to raise tax collection. Global consultant McKinsey projects spending in the Indonesian e-commerce market to rise to as much as $65 billion by 2022, from $8 billion last year, similar to the growth trajectory experienced in China between 2010 and 2015, and the government is trying to squeeze more from a market that traditional retailers have alleged avoids taxes.

Ministry of Finance spokesman, Hestu Yoga Saksama said that starting from April all the operators of online marketplaces will have to detail each seller's turnover and report this to the authorities.

The Directorate General of Taxes said an online seller that makes at least Rp 4.8 billion ($340,000) in turnover must charge value-added tax to customers and pay this to the authorities.

A seller must also pay income tax of 0.5 percent of turnover if it is a small or medium business, or a 25 percent corporate tax of profit if it is big enterprise, bringing the sector in line with requirements for conventional retailers.

Source: https://jakartaglobe.id/business/govt-cracks-e-commerce-raise-tax-collection/