Government to Block Access to Non-Compliant Foreign Digital Platforms

JAKARTA. The government plans to block foreign digital businesses engaged in trade through the electronic system (PMSE) that do not comply with tax regulations.

To implement this, the government is currently drafting a regulation in the form of a Minister of Finance Regulation (PMK), as conveyed by Hestu Yoga Saksama, Director of Tax Regulation I at the Directorate General of Taxes (DGT).

Citing Kontan.co.id, the draft regulation stipulates that the technical process of access revocation will be carried out by the Ministry of Communication and Informatics (Kominfo) at the request of the Ministry of Finance.

So far, foreign PMSE entities that sell digital goods or services to Indonesian consumers are required to collect and remit Value Added Tax (VAT).

Appointment of VAT Collectors for PMSE

This obligation applies to foreign PMSE entities appointed by the Directorate General of Taxes (DGT) as VAT collectors for PMSE, as stipulated in Law Number 7 of 2021 on the Harmonization of Tax Regulations (HPP Law).

Since the regulation came into effect in 2020 through September 2025, DGT has appointed 246 digital companies as PMSE VAT collectors. During that period, VAT revenue from PMSE has reached IDR 32.94 trillion.

In detail, the VAT revenue from PMSE in the period of 2020–2025 was IDR 731.4 billion in 2020, IDR 3.9 trillion in 2021, IDR 5.51 trillion in 2022, IDR 6.76 trillion in 2023, IDR 8.44 trillion in 2024, and IDR 7.6 trillion up to 2025. (ASP/KEN)