Indonesia’s proposed 0.5% sales tax on electric power sellers.

According to Reuters, on 24 June, three informed sources revealed that Indonesia plans to require e-commerce platforms to deduct 0.5 per cent of the sales tax for small and medium-sized sellers in order to increase taxes and balance competition between the real economy and the fast-growing e-commerce industry, which will have an impact on power company platforms such as TikTok Shop.

According to sources, the proposed tax policy would apply to small and medium-sized vendors with annual turnover ranging from 500 million guilders (about $30,000) to 4.8 billion guilders (about $300,000), expected to be implemented as early as next month.

This is taking place at a time when Indonesian tax revenues are falling. Official data show that tax collection decreased by 11.4 per cent in the five months of 2025. The Government wants to fill this gap by taxing e-commerce transactions, while creating a more level playing field for real retailers.

The size of Indonesia ‘ s e-commerce market is expected to reach $150 billion by 2030, attracting major platforms such as TikTok Shop, Hopee and Lazada. However, these platforms objected to the new regulation, arguing that it would increase operating costs while threatening the living space of small and medium-sized vendors.

According to one source, the Government plans to complete the designation of a tax policy in the coming weeks, which may come into effect in July. Another source indicated that similar policies had previously been withdrawn because of strong industry opposition, such as the 2019 proposal to require the sharing of data on electric power platforms.