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Indonesia collects $1.6B in VAT from digital giants, crypto adds $74M

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Jakarta Globe - March 14, 2025

Arnoldus Kristianus, Jakarta – Indonesia has collected Rp 26.18 trillion ($1.6 billion) in Value-Added Tax (VAT) from digital transactions over the past five years, with contributions from digital companies operating in the country, including Meta, Google, Microsoft, and Amazon.

"This revenue comes from Rp 731.4 billion in 2020, Rp 3.9 trillion in 2021, Rp 5.51 trillion in 2022, Rp 6.76 trillion in 2023, Rp 8.44 trillion in 2024, and Rp 830.3 billion in early 2025," said Dwi Astuti, Director of Public Relations at the Directorate General of Taxes (DJP), on Friday.

As of February 2025, 211 digital businesses operating in Indonesia have been designated as VAT collectors under the Electronic-Based Trading System (PMSE).

In the same month, ten domestic digital platforms – including Shopee, Tokopedia, Bukalapak, and JD.ID – were consolidated under their parent companies' tax identification numbers (NPWP). The government aims to register more digital service providers as VAT collectors to create a level playing field between traditional and digital businesses.

Indonesia's tax efforts extend beyond online marketplaces. The government also collects taxes from cryptocurrency transactions, fintech lending, and government procurement. Since 2022, tax revenue from cryptocurrency has reached Rp 1.21 trillion ($74 million), with income tax on crypto sales contributing Rp 560.61 billion and VAT on crypto purchases totaling Rp 653.46 billion. Fintech lending taxes have generated Rp 3.23 trillion, primarily from interest-based taxes on peer-to-peer lending platforms. Government procurement tax revenue has added Rp 2.94 trillion through transactions on the state procurement system.

"The government will continue exploring new tax opportunities in the digital economy to ensure fair taxation across all sectors," Dwi said.

Source: https://jakartaglobe.id/business/indonesia-collects-16b-in-vat-from-digital-giants-crypto-adds-74

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