The Indonesian minister of finance (MoF) has established a new mechanism through Regulation No. 37 of 2025 (PMK 37/2025) to improve the efficiency and effectiveness of income tax collection.
The regulation designates ‘other parties’ as income tax collectors, along with the procedures for collecting, depositing, and reporting taxes on income earned by domestic merchants through the Trading through Electronic Systems (Perdagangan Melalui Sistem Elektronik, or PMSE) mechanism. PMK 37/2025 became effective on July 14 2025 and the main points are as follows.
Appointment of marketplace platforms as income tax collectors
The other parties that are appointed by the MoF as withholding agents for Article 22 income tax to collect, remit, and report taxes on income received or earned by domestic traders through the PMSE mechanism are PMSE operators/marketplace platforms that reside, or are domiciled, (i) within the territory of the Republic of Indonesia, or (ii) outside the territory of the republic, and fulfil certain criteria.
The PMSE operators appointed are those that use an escrow account to collect the income and:
Have a transaction value with users of electronic means of providing services used for transactions in Indonesia exceeding a certain amount within 12 months; and/or
Have traffic or a number of users exceeding a certain amount within 12 months.
The limits on the size of transaction values, traffic volume, or the number of users mentioned above will be determined by the MoF.
Criteria for domestic traders and how information is disclosed to other parties
Domestic taxpayers are required to provide information such as their taxpayer identification number or national identification number and mailing address to other parties designated as tax collectors. If a domestic taxpayer has a turnover of up to IDR 500 million (specifically for individual taxpayers), they must attach a turnover statement. If they have a certificate of exemption from income tax collection, that document must also be submitted.
This information is to be provided before the income is received. If the turnover exceeds IDR 500 million, the domestic trader must submit a statement letter no later than the end of the month in which the limit is exceeded. All information must be resubmitted annually or if there are updates.
The rate, calculation, and utilisation of Article 22 income tax are given in the table below.
Article 22 withholding tax rate | 0.5% of gross income (not including VAT and luxury goods sales tax) |
When tax becomes due | When payment is received by the marketplace platform |
Tax credit | The Article 22 income tax that has been paid can be taken into account by the domestic trader as a tax credit for the current year. |
For domestic traders subject to final income tax | · Where Article 22 income tax is collected on the income of domestic traders subject to final income tax (land/building rental, construction services, purchase of goods/services by taxpayers with certain gross income (Article 4 paragraph 2 of the Income Tax Law) and income according to Article 15 of the Income Tax Law (e.g., the shipping sector)), the Article 22 income tax is part of the final income tax payment for these domestic traders. · If the Article 22 income tax collected is less than the final income tax due, the difference must be paid by the domestic taxpayer. · In the case of overpayment, a refund can be requested. |
Exemption from withholding of Article 22 income tax by other parties
Other parties do not collect Article 22 income tax on the following transactions:
Sales by individual taxpayers with a turnover not exceeding IDR 500 million, which have submitted a statement letter;
Shipping/forwarding services performed by individual taxpayers who are partners of application-based transportation entities;
Transactions with domestic sellers holding an income tax exemption certificate (Surat Keterangan Bebas, or SKB);
Sales of prepaid phone credit and SIM card starter packs;
Sales of gold jewellery and gemstones by gold jewellery manufacturers, gold jewellery traders, and gold bar ‘entrepreneurs’; and
Transfers of land/building rights, or binding sales and purchase agreements for land and buildings.
Tax regulation on crypto asset transactions
The government has issued MoF Regulation No. 50 of 2025 regarding the taxation of cryptocurrency transactions in Indonesia. The regulation came into effect on August 1 2025 and is designed to align the tax system with the development of the digital economy.
Here are the key points in PMK-50:
The buying and selling of crypto assets is no longer subject to VAT because crypto assets are now considered equivalent to securities.
Crypto asset transaction verification services provided by crypto asset miners are subject to VAT at an effective rate of 2.2%, as they are considered taxable services.
The sale of crypto assets by domestic electronic system trading operators (PPMSEs) through official platforms is subject to a final Article 22 income tax of 0.21%. This tax is collected by platforms designated by the government. For foreign PPMSEs, the effective tax rate is 1%.
The income of crypto asset miners, such as block rewards and transaction verification fees, will be subject to the normal income rate (not the final rate), and this will be effective from the 2026 fiscal year.
Article 22 income tax on gold bars
The government has issued MoF Regulation No. 51 of 2025 regarding the collection of Article 22 income tax on the importation and sale of gold bars in Indonesia. The regulation came into effect on August 1 2025 and is designed to align tax provisions with changes in the supervision of the gold bar industry, which is now under the Financial Services Authority (Otoritas Jasa Keuangan, or OJK).
The regulation’s key points are as follows:
The purchase of gold bars from parties designated as tax collectors – namely, financial service institutions engaged in the bullion (gold bar) business that have obtained permission from the OJK – is subject to a 0.25% rate;
Additionally, the Directorate General of Customs and Excise is responsible for collecting Article 22 income tax on the importation of gold bars, at a rate of 0.25% of the import value;
Exemptions from Article 22 income tax are granted to transactions conducted by specific parties, including Bank Indonesia, government agencies, or parties with an SKB; and
The procedures are set forth for appointing collectors, depositing and reporting, as is the mechanism for obtaining a tax exemption or refund in the event of overpayment or incorrect collection.
Update on import policies and regulations
On June 30 2025, the Indonesian Ministry of Trade issued Regulation No. 16 of 2025 (MoT-16/2025), which governs import policies and procedures in Indonesia. The aim is to control foreign trade activities and implement various government regulations related thereto. MoT-16/2025 revoked Minister of Trade Regulation No. 36 of 2023, as most recently amended by Minister of Trade Regulation No. 8 of 2024, and it will become effective on August 29 2025.
MoT-16/2025 has been followed by the issuance of eight Ministry of Trade regulations, each classified according to import commodity clusters, as follows.
No | Ministry of Trade regulation | Commodity |
1 | No. 17 of 2025 | Textiles and textile products |
2 | No. 18 of 2025 | Agricultural and livestock products |
3 | No. 19 of 2025 | Salt and fishery commodities |
4 | No. 20 of 2025 | Chemicals, hazardous materials, and mining materials |
5 | No. 21 of 2025 | Electronic and telematics goods |
6 | No. 22 of 2025 | Certain industrial goods |
7 | No. 23 of 2025 | Consumer goods |
8 | No. 24 of 2025 | Non-new goods and non-hazardous and toxic goods |
The new import policy introduces a relaxation on several goods and commodities that were previously classified as restricted or prohibited imports (LARTAS), as follows.
