The Indonesian Directorate General of Taxation (DJP) confirmed that Finance Minister Regulation (PMK) No. 37/2025 will not impose income tax collection on online motorcycle taxi services, gold traders, or mobile credit sellers.

Hestu Yoga Saksama, Director of Tax Regulation I at DJP, clarified that these services are exempt under Article 10 of the regulation.

PMK No. 37/2025 mainly targets income tax collection for domestic traders using ecommerce platforms.

The regulation, effective July 14, requires platforms to collect, deposit, and report income tax from traders with gross revenue over 500 million rupiah (US$30,705) per year.

Traders below this threshold must submit a statement confirming their revenue.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Indonesia’s strategic tax exemptions reflect a nuanced approach to digital economy regulation

The exclusion of motorcycle taxi drivers (ojol), gold merchants, and mobile credit sellers from the new e-commerce tax regulation demonstrates Indonesia’s sector-specific approach to digital taxation.

These exemptions aren’t merely arbitrary but reflect existing tax frameworks, as confirmed by tax official Hestu Yoga Saksama who noted that “gold jewelry and gold bars already have their own provisions for income tax collection” under PMK 48/2023 1.

By exempting specific sectors, Indonesia demonstrates policy recognition of different business models within the digital economy, creating a more nuanced regulatory landscape that avoids double taxation while still capturing revenue from the growing e-commerce sector.

The careful exemptions suggest government awareness of potential business impact, with regulated sectors like transportation and telecommunications maintaining their existing tax frameworks rather than facing new compliance burdens.

2️⃣ Platforms becoming tax intermediaries signals fundamental shift in digital economy governance

The requirement for e-commerce platforms to collect and remit taxes marks a significant evolution in how governments approach digital taxation across Southeast Asia.

Indonesia’s new regulation requiring platforms to withhold 0.5% tax on sales from merchants with annual turnover between 500 million and 4.8 billion rupiah follows Vietnam’s similar approach, where platforms must now withhold VAT and personal income tax from sellers before releasing funds 2.

This platform-as-tax-collector model represents a fundamental shift away from relying on individual merchant compliance toward leveraging the technological infrastructure of marketplaces, recognizing their central position in the digital economy.