Minister of Cooperatives and Small and Medium Enterprises (SMEs), Maman Abdurrahman, has emphasized that e-commerce platforms will not be appointed to collect taxes from micro, small, and medium enterprises (MSMEs) operating on their platforms.

Under the government’s plan, sellers with annual revenues between Rp500 million (US$30,788) and Rp4.8 billion will be subject to a 0.5 percent tax, with enforcement expected to begin later this month.

“There has been no discussion to appoint e-commerce companies as tax collectors for MSMEs. However, we have assigned them to conduct data collection and monitoring of MSME activities on their platforms,” Maman said at his office, on Friday, July 11, 2025.

He underlined that the government’s mandate to e-commerce platforms is strictly administrative, not fiscal. Their role is limited to tracking and reporting seller activity − not to impose or withhold taxes.

Previously, Deputy Finance Minister Anggito Abimanyu said that the regulation on e-commerce taxation has not yet been finalized.

“The policy hasn’t been issued yet. So let’s wait until the official regulation is released,” he said during a press briefing at the Ministry of Trade on June 30, 2025.

The upcoming regulation aims to establish fair taxation between online and offline businesses, as well as to improve the government’s ability to monitor digital transactions. Currently, the government lacks a comprehensive system to track electronic commerce (PMSE) transactions for taxation purposes.

“To begin with, we’ve instructed platforms to record who is engaging in digital trade via PMSE. This effort had been tried before but was later canceled,” Anggito said.

He also clarified that the policy will not lead to double taxation, particularly for conventional sellers who also operate through digital channels.

Ultimately, the initiative seeks to ensure equal treatment between offline and online sellers, while also creating a transparent digital transaction database to support effective tax administration.